SUMMER INTERNSHIP REPORT ON V.V.V & SONS EDIBLE OILS

LIMITED (MANUFACTURERS OF IDHAYAM) VIRUDHUNAGAR

A Summer Internship Report Submitted to

AMERICAN SCHOOL OF BUSINESS ADMINISTRATION (ASBA)

THE AMERICAN COLLEGE, Madurai – 625002. (An Autonomous Institution Affiliated to Madurai Kamaraj University)

in partial fulfillment of the requirement for the Award of the Degree of

Master of Business Administration

Submitted By

MANIKANDAN. A

(17MBA255)

Under The Guidance Of

Mr. R. JACKSON GUNARAJ B.E., MBA.,

Faculty Guide –ASBA

May 2018

DECLARATION

I, MANIKANDAN.A (17MBA255) student of American School of Business Administration,

The American College hereby declare that the Summer Internship report on “V.V.V &

SONS EDIBLE OILS LIMITED (MANUFACTURERS OF IDHAYAM)

VIRUDHUNAGAR” submitted in partial fulfillment of the requirement for the award of the

degree of MASTER OF BUSINESS ADMINISTRATION is a original work done by me

under the guidance of Mr. R.JACKSON GUNARAJ B.E., MBA., Faculty Guide- ASBA

and that no part of this Summer Internship has been submitted fully or partly for any other

recognition earlier.

Date: Yours Faithfully,

Place: Madurai

[MANIKANDAN.A]

CERTIFICATE

AMERICAN SCHOOL OF BUSINESS ADMINISTRATION (ASBA)

THE AMERICAN COLLEGE

MADURAI

This is to certify that the Summer Internship “V.V.V & SONS EDIBLE OILS LIMITED

(MANUFACTURERS OF IDHAYAM) VIRUDHUNAGAR” for the course MBA 4500

Summer Internship submitted to American School of Business Administration, The

American College in partial fulfillment for the requirement of MBA degree is a bonafide

record of the work carried out by MANIKANDAN.A (17MBA255) under my guidance and

supervision.

Faculty Mentor Director& Research Head

ACKNOWLEDGEMENT

I dedicate this Summer Internship work to the benevolent persons who have supported

by spending their precious time for the completion of the training.

I take this opportunity to thank Dr. M. Davamani Christober M.Sc., Ph.D., Principal&

Secretary, for giving me this wonderful opportunity for doing the Summer Internship.

I express my sense of gratitude and heartfelt thanks to Dr. S. Raju, MBA., Ph.D., Director&

Research Head, ASBA for his motivation, support and constant encouragement.

I gratefully acknowledge my wholehearted appreciation to Mr.R. Jackson Gunaraj

B.E.,MBA., Faculty Guide ASBA for his inspiring guidance, valuable comments and

suggestions provided right from the initial stage to the completion towards this Summer

Internship work.

I greatly thank my beloved Parents & Friends for their moral support and encouragement in

bringing out this study a successful one.

TABLE OF CONTENT

SNO CONTENT PAGE NO

1

INDUSTRY PROFILE

1.1 IMPORTANCE OF EDIBLE OILS IN THE COUNTRY’S

ECONOMY.

1.2 TYPES OF OIL COMMOMLY IN USE IN INDIA.

1.3 CONSUMPTION PATTERN OF EDIBLE OILS IN

INDIA.

1-3

2

COMPANY PROFILE

2.1 LOGO

2.2 HISTORY OF IDHAYAM

2.3 VISSION AND MISSION STATEMENT

2.4 CORE VALUES

2.5 PERSONNEL POLICIES

2.7 PRODUCT DEVELOPMENT

2.8 IDHAYAM REACH

2.9 ORGANIZAGTION STRUCTURE

2.10 PRODUCTS

2.11 RAW MATERIALS

4-15

3

FUNCTIONS OF VARIOUS DEPARTMENTS

3.1 FACILITY DEPARTMENT

3.1.1 HUMAN RESOURCES

3.1.1.1 STAFF RECRUITMENT

3.1.1.2 INCREMENT

3.1.1.3 TRAINING AND DEVELOPMENT

3.1.1.4 CONTROLLING

3.1.1.5 PROMOTIONS AND TRANSFER

3.1.1.6 SHIFT TIMINGS

3.1.2 HOUSE KEEPING

3.1.3 RECEPTION

3.1.4 BUILDING UPKEEPING AND OFFICE

15-25

STATIONARY

3.1.5 LEGAL ACTIVITIES

3.1.6 CSR ACTIVITIES

3.1.7 OTHER ACTIVITIES

3.2 BUSINESS DEVELOPMENT

3.2.1 EXPORTS

3.2.2 SALES

3.2.3 PROMOTIONS

3.2.4 SALES SETUP TEAM

3.3 CHAIRMAN SECRETARIAT

3.4 INFORMATION TECHNOLOGY

3.5 PRODUCTION DEPARTMENT

3.6 FINANCE DEPARTMENT

3.6 PURCHASING DEPARTMENT

4 PROJECT

26

5 FACTORY

27-30

6 SWOT ANALYSIS

31

7

MY LEARNINGS

32-34

8 MY OVERALL OBSERVATION

34-35

9 RECOMMENDATION

35

10 CONCLUTION

35

11 REFFERENCE

36

12 ANNEXURE

36-37

1

1. INDUSTRY PROFILE:-

EDIBLE OIL INDUSTRY IN INDIA

Climate conditions in India favor growing a variety of oilseeds. On the demand side, a

growing population and vastly varied dietary habits have ensured a thriving market for edible

oil in the country. In fact, there is a substantial demand overhang, which is expected to

continue for some years. At present, this is offset by imports that cater to almost half of the

total domestic consumption. With cheap imports threatening to cripple the domestic industry,

the government is walking a tightrope between filling the demand supply gap and the

political need to keep the domestic industry in good health, Unorganized, medium and small

players domestic the industry.

An average Indians yearly edible oil requirements has gone up from 7.0kg in 1996-

1997 to 11.8kg in 200-01 and keeps on increasing. Despite the variety of oilseeds grown in

India, the country imports a substantial quantity of edible oil which also works out cheaper.

Allied factors contributing to imports are the higher cost of cultivation in India and

uneconomic oil extraction systems. Oil seeds in India account for around 5.0 percent of the

Gross National Product (GNP) and 14.0 percent of the country’s area under cultivation of

crops. Caster, Groundnut, Linseed, Niger, Rapeseed, Mustard, Safflower. Sesame and

sunflower are some of the major oil seeds grown. India produces 10 percent of the world’s oil

seeds, but has a low productivity of around 850-900kg per hectare (compared to a world

average of around 1100-1350kg per hectare).

The amount of oil extracted from the seed varies with the type and quantity of seed. In

many cases, the oil recovery rate is upwards of 30.0 percent with sesame for a high 45.0

percent. Domestic consumption of edible oils has been growing at 4.0-5.0 percent a year. The

consumption in 2001-02 was around 25.75 million tons. Non-packaged oils accounts for

nearly 50.0 percent of consumption in both urban and rural markets. In the remaining 50.0

percent contributed by packaged oils, branded oils constitute a small portion of

approximately 10.0-15.0 percent.

2

1.1. IMPORTANCE OF EDIBLE OILS IN THE COUNTRY’S ECONOMY:

Oil seeds and edible oils are two of the most sensitive essential commodities.

India is one of the largest producers of oilseeds in the world and their sectors occupies an

important position in the agricultural economy and accounting for the estimated production of

28.21 million tones of nine cultivated oil seeds during the year 2007-2008. India contributes

about 6-7% of the world oilseeds production. Exports of oil meals, oil seeds and minor oils

has increases from 5.06 million tones in the financial year 2005-06 to 7.3 million tons in the

financial year 2006-07. In terms of value, realization has gone up from Rs 5514 crores to Rs

7997 crores. India accounted for about 6.4% of world oil meal export.

1.2. TYPES OF OIL COMMONLY IN USE IN INDIA:-

India is fortune in having a wide range of oilseeds crops grown in its different agro

climate zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed, niger seed/castor are

the major traditionally cultivated oilseeds. Soya bean and sunflower have also assumed

importance in recent years. Coconut is most important amongst the plantation crops. Efforts

are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in addition to

Kerala and Andaman & Nicobar Islands. In addition, oilseeds of tree and forest origin, which

grow mostly in tribal inhabited areas, are also a significant source of oils.

1.3. CONSUMPTION PATTERN OF EDIBLE OILS IN INDIA:-

India is a vast country and inhabitance of several of its regions has developed specific

preference for certain oils largely depending upon the oils available in the region. For

example, people in the south and west prefer groundnut oil while those in the east and north

use mustard, rapeseed oil. Likewise several pockets in the south have a preference for

coconut and sesame oil. Inhabitants of northern plain are basically hard fat consumers, and

therefore, prefer vanaspati, a term used to denote a partially hydrogenated edible oil mixture.

Vanaspati has an important role in our edible oil economy. Its production is about 1.2 million

tons annually. It has around 10% share of the edible oil market. It has the ability to absorb a

heterogeneous variety of oils, which do not generally find direct marketing opportunities

3

because of consumers’ preference for traditional oils such as groundnut oil, mustard oil,

sesame oil etc. For example, never oils like soya bean, sunflower, rice bran and cottonseed

and oils from oilseeds of tree and forest origin had found their way to the edible pool largely

through vanaspati route. Of late, things have changed. Through technology means such as

refining, bleaching and deodorization, all oils have been rendered practically colorless,

odorless and tasteless, therefore, have became easily interchangeable in the kitchen, like

those of cottonseed, sunflower, palm oil or its liquid fraction (palmolein) soya bean and rice

bran. These tend to have a string and distinctive taste preferred by most traditional customers.

The share of raw oil, refined oil, and vanaspati in the total edible oil market is estimated at

35%, 55% and 10% respectively.

4

2. COMPANY PROFILE:-

V.V.V RAJENDRAN

Founder

Idhayam Group

Company Name - V.V.V & sons edible oils limited (manufacturers of Idhayam)

Nature of business - Manufacturer

Year of establishment - 1986

Legal status of the firm - Private limited company

Company CEO - MR V.R Muthu

Headquarters - 443, Bazaar road,

Virudhunagar-626001, Tamil Nadu, India

Plant location - Virudhunagar, Villipathirii, Varalotti

Certificate - ISO9001:2000 Certificate TUVCERT in 2005

Total number of employees - Around 1500 employees

Website - www.idhayam.com

E-mail - threevee@idhayam.com

5

2.1. LOGO:-

2.2. HISTORY OF IDHAYAM:-

The year was 1943. Four years before India got independence, a small independent

step toward a giant leap was made in the cooking oil industry, at Virudhunagar, a town in the

south of India. The man behind the step was V.V.Vanniaperumal who had an exemplary

track record in the business world of Tamil Nadu. He had three illustrious sons who built up

the business empire in edible sesame (Gingelly) oil as traditional family business. Their

business base was constructed in the Business town - Virudhunagar, 30 Kms from Madurai

Airport.

Mr. V.V.V. Rajendran, son of Mr. V.V.Vanniaperumal was the founder of the Idhayam

Group in the year 1986. He carried forward the torch lit by Mr. Vanniaperumal with a sole

objective to deliver quantity and healthy edible oils to the people. Hands with an experience

of more than 43 years he Launched sesame oil in a new consumer packing in the brand name

'Idhayam Sesame Oil'. 'Idhayam', the name gets its origin from 'Hriday' a Sanskrit word,

which means 'heart'. Idhayam sesame oil is a natural cooking medium. It does not affect the

heart, hence the name. Idhayam also reduces blood cholesterol. Today just the word

'Idhayam', has almost become synonymous with Sesame Oil.

The Group was built with the main object of 'Growth with Truth and Hard Work'. 'Committed

Quality' was their key to success. Within a short span of its launch 'Idhayam' entered into

millions of homes and also into the hearts of its occupants.

After the demise of the founder of Idhayam Mr. V.V.V. Rajendran in 1994 the business onus

fell on Muthu and his able and efficient brothers Sathyam and Thendral. They collectively

took charge of reins of the Group following the same principles of Mr. V.V.V. Rajendran.

6

Quality sesame seeds are not available throughout the year. Hence good quality sesame seeds

carefully sourced from different states during different seasons in India and are pre cleaned

through a special three tier sophisticated cleaning system. Idhayam sesame oil does not froth

while heating, a proof for its purity so It can be used even for deep frying. They also have a

modern auto packing system.

Palm Jaggery which has the properties of preservative is used in the production of Idhayam

sesame oil. Palm Jaggery when added gives out a flavor making Idhayam sesame oil an

excellent cooking medium. Absence of bitter taste in Idhayam sesame oil makes it the most

preferable cooking oil. The pickle makers first preference is Idhayam oil.

Presence of linoleic acid (Essential Fatty Acid) in Idhayam sesame oil tends to make it a

controller of cholesterol. Its medicinal properties uses as principal ingredient in the

preparation of Ayurvedic drugs. It is also used for body massage. "Child Specialists at the

University College of Medical Science (UCMS), Delhi say that sesame oil is the best

massage oil for babies. "People will save money by using plain sesame oil instead of those

heavily advertised baby massage oils", they said in their report.

No artificial flavors…

No chemical so very natural

Idhayam again introduced another superior sesame oil Idhayam Delit which is manufacturer

from only export quality sesame seeds. Recipes prepared using Idhayam Delit leaves your

mouth watering.

The company sold 2,600 tonnes of oil in 1988 and 11,000 tonnes in 2000 and 12,284 tonnes

in 2001. The turnover jumped from Rs.1.68 crores in 1988 to Rs.7.88 crores in 2001. The oil

may be available in countries other than India but in violating trademark rights of the rightful

owner in said country. For example in USA Idhayam brand is owned by Meenakshi Overseas

LLC, New Jersey and Idhayam group takes up all possible method to free-ride on the brand

"Idhayam" in USA.

The company started producing and marketing Mantra groundnut oil from year 2006 starting

in Tamil Nadu. It also has plans to introduce it in Kerala and Andhra Pradesh.

7

2.3. VISSION AND MISSION STATEMENT:-

2.4. CORE VALUES:-

Maintain customer satisfaction.

High quality

Time management

Employee friendly

2.5. PERSONNEL POLICIES:-

Dearness allowance

Night shift allowance

Medical allowance

Transfer allowance

Education allowance

Uniform allowance

• To be a leading and respected company in providing high quality edible oils with worldwide visibility.VISSION

•We are dedicated to deliver premium quality sesame oil through continuous improvement in quality with an uncompromised level of service. investment in process technology, innovative packaging, human resources and frequent update of R&D, striving to achieve worldwide recognition as a leading supplier in the industry.

MISSION

8

2.6. PRODUCT DEVELOPMENT:-

Company is constantly doing research and development to provide our customers

with high quality, innovative products.

In 1992, cleaned sesame seeds were packed in small packs and marketed under the

brand name SAMBANTHI.

In 2001, the company launched wide varieties of Appalam (pappad) under the brand

name- DOTS in different flavors. Appalam is a popular dish of south Indians.

In 2005, keeping the calcium content of sesame seeds in mind, the company has

innovated a new product, sweet-coated sesame seeds. This is brought into the market

under the brand name-TAHINI. TAHINI caters to the need of calcium among women

and children.

In 2005, the company innovated a health care product for “oil pulling” under the

brand name – IDHAYAM WEALTH. Ayurveda recommends the process-

GARGLING WITH SESAME OIL, which increases immunity and prevents our body

from many diseases

In 2006, the company started manufacture of peanut oil, a deep frying medium and

marketed under the brand name – IDHAYAM HARDIL mustard oil for northern

states of India.

2.7. IDHAYAM REACH :-

Idhayam sell their products to more than 10 countries with customer base in USA,

Gulf countries, Singapore, Canada, Denmark, South Africa, Port Louis, New Zealand,

Switzerland, Mauritius and Scotland.

Over the years they had proven themselves to be the preferred supplier of edible oils.

They built long term relationship with the most reliable suppliers of raw materials in

the country, major distributors and leading retail systems in the operating markets.

In the face of the ever-changing global economy, they are dedicated to remain at the

forefront of the evolution so as to serve better to the customer. With a long-term

approach to their business goal, the company is ever receptive to market demands.

With their commitment and track record in the field, they believe that they can offer a

mutually beneficial relationship to their business partners for continued growth, well

into the 21st century.

9

Quality assurance activities are carried bt our well trained staff using sophisticated

equipment to ensure that their products will arrive at the customer doorstep virtually

free from defects.

They can offer all our products with their brand name or the dealer’s own private

brand name, if they prefer.

2.8. ORGANISATION STRUCTURE

10

2.9. PRODUCTS:-

IDHAYAM SESAME OIL:-

The pioneer brand from the house of India’s largest manufacturer of sesame oil. The

specialty of the product is that it is filtered sesame oil but not refined (repaired), keeping in

mind the health of the consumers. It is light on your heart too. Idhayam sesame oil is the

preferred one not just for cooking but also for massaging.

It is the favorite edible oil of 1.5 million home-makers in India. It is available in

convenient packs of 1 liter, 500 ml, 100 ml and 50 ml sachets and HDPE containers.

MANTRA GROUNDNUT OIL:-

One of the popular products that has won the hearts of millions across India. Good for

health, Idhayam mantra groundnut oil is manufactured from the selected groundnuts, with a

sole aim of keeping in mind the health of the nation.

Groundnut oils are of great use for medicinal purpose. The oils is also known for its

culinary use. It is extensively used in the Southeast Asian cuisine. It has come into

prominence owing to the numerous health benefits it provides. Thick in texture, it leaves an

oily feel on the skin. Groundnut oil has a very light nutty aroma.

11

It is preferred amongst other cooking oils for its high smoke point. Groundnut oil had a high

content of palm tic acid, oleic acid, and linolenic acid. The oil contains MUFAs that lower

the level of bad cholesterol.

Also several findings by scientists and doctors have thrown light on the positive

effects of using groundnut oil. This oil keeps hale and hearty.

It is available in HDPE containers, besides one liter, 500 ml and 200ml in sachets.

Again the good news is that Idhayam mantra is filtered but not refined (repaired).

12

SAMBANDHI SESAME SEEDS:-

` Sambandhi sesame seeds are one of the pioneer products from the house of Idhayam.

This product, a part and partial of Asian cuisine, is available in three varieties namely white,

red, and black. Sesame seeds, which add taste to the food besides its nutritional value, are

available in 100gm, 50gm and 20gm. The seeds are cleaned with utmost care.

IDHAYAM WEALTH OIL PULLING:-

Sesame oil has a magic to maintain oral hygiene. Starting the day with oil pulling

(using sesame oil) works wonders. This therapy is effective in fighting bad breath and micro

organisms that sit on your mouth. Though much has been deliberated on oil pulling. Still

many do not know the concept. Interestingly, it has found its mention in Ayurveda and has

been regarded for centuries as the best way to fight tooth decay and gum diseases. A teaspoon

of sesame oil should be taken in the mouth, sipped, sucked and pulled for 20 minutes. The

swished oil should not be swallowed. “It is extensively used as a traditional Indian folk

remedy to prevent tooth decay, bleeding gums and dryness of throat and cracked lips” says

Dr Sharath Asokan, a leading preventive dental surgeon. Sesame oil has advantages that

include to starting, no lingering after taste and no allergy. It is a natural product and it is cost

effective than chemical mouthwashes.

13

Oil pulling is a traditional method for preventive care (as per traditional Ayurveda

system of medicine). Idhayam wealth is available in 10ml sachets. Swishing 10ml of

Idhayam wealth for 20 minute assures good oral health. Keeping these in mind, the Idhayam

group has come out with 10ml sesame in the brand name of “Idhayam wealth” throwing

immense thrust on oil pulling with a sole aim to ensure good health of the people.

TAHINI SWEETENED SESAME SEEDS:-

Tahini, while sesame seeds coated with sugar, which are loved by children. They are

available in 5gm sachets.

14

DOTS APPALAM:-

Idhayam Dots Appalam is the preferred snack with meal at every household. The

crunchy and munchy snack is a must in every Indian home. Made of pure and clean black

gram, dots appalam is protein rich and hygienic, and is available in convenient packs of

200gm, 150gm, and 100gm sachets. Also they pack mini Dots Appalam, which has become a

favorite TV time snack anytime anywhere.

HARDIL MUSTARD OIL:-

The company started manufacture of peanut oil, a deep frying medium and marketed

under the brand name – IDHAYAM HARDIL mustard oil for northern states of India.

15

OIL CAKE:-

Oil cake is the solids remaining after pressing the raw materials to extract the oil.

They were mainly used for the animal feed purpose.

2.10. RAW MATERIALS:-

Red seeds

Black seeds

White seeds

Palm jiggery

Groundnut seeds for mantra.

3. FUNCTIONS OF THE VARIOUS DEPARTMNETS:-

In Idhayam there are many departments working together for the organization

development. Those departments are

Facility department

Business development

Chairman secretariat

Information technology

Production department

Finance department

Purchasing department

16

3.1 FACILITY DEPARTMENT:-

3.1.1 Human resources:-

In human resources, many functions were undertaken like staff recruitment, preparing

duty chart, salary, bonus, medical allowance, increment, uniforms (including chairman)

managing the leave taken by the staffs, transfers, suspension etc.,

3.1.1.1 Staff recruitment:-

Staff recruitment process refers to the overall process of attracting, shortlisting,

selecting and appointing suitable candidates for jobs within the organization. In Idhayam

the staff recruitment is done to select the candidates for the posts to be filled in the

factory, office, and also security.

The eligible candidates can apply for the jobs in Idhayam through campus drive,

direct office drive, through government etc., The selection of candidates will be done by

means of direct interview process. Salary will be fixed according to their experience by

means of government norms.

3.1.1.2 Increment:-

The increment will be given to the staff according to their experience and also their

performance. Normally per year the increment would be minimum Rs 2000.

3.1.1.3 Training and development:-

The training program is done for the employees. It is aimed at improving the

performance of a particular job. Training helps for the employers to achieve the objective

of the company, by providing opportunities to all employees at all levels in an

organization to acquire the requisite knowledge.

Idhayam will give the training and development to all the staff’s. And also Idhayam

will take care of money expenditure for training. Basic topic was Individual personality

traits, Business development etc…

3.1.1.4 Controlling:-

Daily supervision will be done.

They do not allow mobiles in factories.

17

3.1.1.5 Promotion and Transfer:-

Promotion and transfer means shifting an employee to position in the same hierarchy.

This may be due to seniority and performance. Promotion depends upon the parameters such

as seniority, merit and suitability of the job etc.., In Idhayam the promotion is done on the

basis of seniority and performance.

3.1.1.6 Shift timings:-

SHIFTS MENS WOMENS

1ST Shift 6 am to 12 pm 6 am to 12 pm

2ND Shift 12 pm to 8 pm 12 pm to 8 pm

3RD Shift 8 pm to 6 am -

Office timing 9 am to 6 pm.

3.1.2 House keeping:-

The house keeping is a daily process. In office the house keeping staff’s will look

and arrange the seats, tables, fans which will leads for the smooth operation for the other

staffs. It is mainly taken care for the job satisfaction. If the seats or tables or fans etc.. are

not comfortable it will disturbs the staff to do their work properly. It might distract the

staff’s mind. The housekeeping is team work.

3.1.3 Reception:-

Reception is the action or process of receiving something sent, given, or

inflicted

It was the first and best approach in Idhayam.

They will receive the people with excellent approach.

At reception they will welcome the people with offering some drinks like tea,

coffee, milk, tip tea etc….

There will be a tea management team and they will check the quality of the

drinks daily.

At reception they will receive the posts or couriers and enter it in the entry

book and they will dispatch to the respected departments.

At reception they will record the staff’s entry, visitor’s entry etc…

18

3.1.4 Building up keeping and office stationary:-

They will take care of building works

They will take care of water filers and repairs

Daily cleaning will be done.

Material purchase and sales also taken care

Stock maintenance will be taken care.

Stationary purchase will be done like pen, pencil etc….

3.1.5 Legal activities:-

They will handle Labour cases

They will handle the Criminal case, civil case etc… in both office and

factories.

3.1.6 CSR activities:-

Idhayam were taking care of staff’s children study fee. They will offer average

amount for the study fees to the staff’s children.

And also they will offer some money for the high scoring students for their

higher studies.

Idhayam were doing many awareness program like blood donation camp, eye

donation camp, etc..

3.1.7 Other activities:-

Idhayam was member in the many clubs like rotary club, JC club etc….

Idhayam will taken care of all arrangement of any special programs that was

conducted by those clubs.

Idhayam chairman was the secretary for the chamber and industries club, in

that many programs will be conducted and they will do all the arrangements

for all that programs.

In Idhayam office there is a library. That library contains all types of books.

All the staff’s will use those books.

19

3.2 BUSINESS DEVELOPMENT:-

All over the India Idhayam had 300 distributors (approx).

In Virudhunagar around 67 distributors were there.

In Salem around 72 distributors were there.

In Chennai around 40 distributors were there.

In Madurai around 25 distributors were there.

3.2.1 Sales mix:-

4 P’S are

Product

Price

Place

Promotion

PRODUCT

The products manufactured in HRPL are,

Idhayam sesame oil

Mantra groundnut oil

Sambandhi sesame seeds

Idhayam wealth oil pulling

Tahini sweetened sesame seeds

Dots appalam

Hardil mustard oil

Oil cake

PRICE

All the products are priced according to their volume. The affordable

and competitive price is being fixed for the customers.

PLACE

Idhayam sells their product to all over the India especially more sales

in Tamil Nadu. Idhayam exports their products to various countries

like USA, Singapore, Australia, UK, and also Gulf through direct

export.

20

PROMOTION

The promotion is according to the volume of the products like cash

discounts and other offers. And also through advertisements, posters

etc…

3.2.2 Exports:-

Idhayam exports their products to various countries like USA,

Singapore, Australia, UK, and also Gulf through direct export.

The price of the Idhayam products for foreign trade can be changed

according to the India price only (monthly).

Idhayam will get the orders through mails only.

ORDERS QUOTATION AMOUNT GOODS

RECEIVE DELIVERY

In USA the quality checks will be more, Idhayam product will gets

pass all those quality checks because Idhayam concentrate more on

their quality.

As per government norms the free fatty acid should be only 4%. But

Idhayam has only 1.5% in all the products.

Foreign importers name will be printed in the label of all the products.

3.2.3 Distribution channel:-

The company has a well-structured distribution channel, which is more

essential in the process of delivery of the product to the customer at the

right time.

Idhayam do not do direct retailing to the customer

MANUFACTURING DISTRIBUTOR RETAILER

CUSTOMER

Idhayam sells their product only 15% in other countries.

Remaining 85% sales in India.

Last 4 months Idhayam sesame seeds sales were 1400KL.

Last 4 months Idhayam mantra oil sales were 379KL.

21

3.2.4 Promotions:-

Big buyer scheme – In malls or department stores, the buyer who buys

the product for higher price the Idhayam will offer free Idhayam

product to that Big buyer.

Advertisements – Book promotions, Posters at Metro train stations,

shops, roads etc…

For export promotions the Idhayam will conduct the Exhibition at once

in a year in foreign countries.

Recently they were not using television advertisements for their

promotions.

3.2.5 Sales setup team:-

MANAGER

CO-ORDINATOR

REPRESENTATIVE

3.3 CHAIRMAN SECRETARIAT:-

The main function of this department was to make responses to the chairman’s

mail, letter etc.. Through directly response or make responses after the

discussion with the chairman.

There will not be any stereotype work.

This department will mange or arrange the travels for the chairman.

This department will be taking care of the lecture speech by the chairman. The

chairman will give his lecture speech in college competition or marriage

functions etc…. The topic would be any motivational topic or business mantra

etc…. in marriage the topics would be some general advises.

This department staff’s should know the functions of all the departments, and

should have good verbal communication.

22

3.4 INFORMATION TECHNOLOGY:-

Idhayam is using ERP system for their operations.

Enterprise resource planning is the integrated management of core business

processes, often in real-time and mediated by software and technology. It is

the process where a company, often a manufacturer, manages and integrates

the important parts of its business. An ERP management information system

integrates areas such as planning, purchasing, inventory, sales, marketing,

finance and human resources.

All the three oil plants and offices are linked in one ERP system.

A Team will maintain the ERP software frequently.

The ERP is used for-

It is mainly used for account maintaining on tax purpose, government legal

purpose, company needs etc.

The customer list will be checked daily.

It is used for cost analysis purpose which will reduce the cost of expenditure.

It will simplify the accounting methods.

It is user friendly.

Time will be reduced.

3.5 PRODUCTION DEPARTMENT:-

There are three Idhayam VVV oil plants situated at Villipathri, Varalotti, and

Virudhunagar.

Idhayam sesame oil is manufactured in Virudhunagar plant and Villipathri

plant.

Idhayam mantra is manufactured in Varalotti plant.

All three plants were having the same basic functions of production.

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At first the raw material will be unloaded at factory.

Before unloading the materials will be checked for quality.

After getting pass then the raw material will sent to cleaning section

At cleaning section the dust or unwanted waste will get removed from the raw

material with the help of Buhler composite system of machine. In this section

also quality check is done.

After the cleaning and quality check the material is sent to the crushing

section.

In crushing section the material is crushed along with the palm jiggery.

The oil and the oil cake is separated at filtering. Quality check also done here.

After that the oil is packed at the packing section.

At packing section the oil is filled in several packets and few bottles.

After packing the oil sachets and bottles is stored in the godown.

And then the products will be dispatched to the shops and customers.

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3.6 FINANCE DEPARTMENT:-

The finance department is like a blood of every organization.

All the activities have to be performed by using the funds only. For those

activities, this department only allocates the funds to each and every

department.

Here finance manager manages the day to day activities by managing the raw

materials, wages etc..

They will analysis those items and allocates the resources according to their

requirements.

In Idhayam all the transaction is fully online and few cheques are allowed.

Idhayam deals all the transaction through HDFS bank, SBI bank and TMB.

Mainly they use major transaction through HDFS bank.

SBI account is mainly used for the payments on RDO OFFICE, Building

buying etc.. it is mainly used for government payments.

Parties will transfer money through online or by cheque. Once they paid

money through online Idhayam will receive mail for the transaction received.

And then only the goods will be delivered.

No cash transaction is allowed.

Few cheques payments are also allowed

For each and every purchasing and transaction the bill is required, even for a

pin purchase.

For each and every transaction UPR no and reference no will be sent through

message through email or mobile number to the parties.

Tax will be included for all the payments.

For export transaction Idhayam use EEFC account for the foreign exchanges.

All the bill documents will be sent to the RBI for clearance.

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3.7 PURCHASING DEPARTMENT:-

The main raw material purchase was sesame seeds, groundnut seeds and Palm

jiggery.

Mostly direct buying is done for purchasing, few dealer purchasing and

committee purchase is also done.

Main purchase is done in Tamil Nadu because the quality of the sesame seeds

is high and but cost also high.

In Tamil Nadu the purchase will be done mostly on March – June.

Inside Tamil Nadu the direct purchasing done in Thirukovilur, Jayamkondan,

Muthur, Trichy, Thiruchendur. Committee purchase is done in

Virudhachalam, Thindivanam, Ulundurpet etc…

Other state purchase only through dealers mainly done in Andhra Pradesh,

Karnataka, Gujarat, Rajasthan. Sometimes in Assam, West Bengal and

Kolkata. Rarely in Maharashtra, New Delhi, Madhya Pradesh and Uttar

Pradesh.

In Andhra Pradesh and Karnataka the purchase will be done mostly on July –

October.

In North India the purchase will be done mostly on Nov – Feb.

The quantity of the single bag purchase will be 75kg, 74kg, and 80kg. Rarely

50kg.

Quality check will be done for each and every raw material purchase in

factory.

If the raw material does not get pass through in all those quality check they

will return the material back. And also the dealer will get more incentive for

good raw materials.

There won’t be any stop in the production process due to scarcity of raw

materials.

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4. PROJECT:-

Idhayam gave me the project to sell the “IDHAYAM OIL PULLING”.

Minimum target – 4000rs.

Maximum target – unlimited.

Incentive - Half of the sales that we are achieving.

Duration of the project – one month.

My wealth agent number – PRO-105 (This agent number will be valid even

after the completion of the Internship period also, it is like permanent number

to me).

I had finished my project by collecting 10 Consumer for Idhayam Oil Pulling

product and made 6000 Rs worth sale in one month.

I got 3000Rs incentive from this project

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5. FACTORY:-

There are three Idhayam VVV oil plants situated at Villipathri, Varalotti, and

Virudhunagar.

Idhayam sesame oil is manufactured in Virudhunagar plant and Villipathri

plant.

Idhayam mantra is manufactured in Varalotti plant.

All three plants were having the same basic functions of production.

At first the raw material will be unloaded at factory.

Before unloading the materials will be checked for quality.

After getting pass then the raw material will sent to cleaning section

At cleaning section the dust or unwanted waste will get removed from the raw

material with the help of Buhler composite system of machine. In this section

also quality check is done.

After the cleaning and quality check the material is sent to the crushing

section.

In crushing section the material is crushed along with the palm jiggery.

The oil and the oil cake is separated at filtering. Quality check also be done

here.

After that the oil is packed at the packing section.

At packing section the oil is filled in packets and few bottles.

After packing the oil sachets and bottles is stored in godown and then

dispatched to the customers.

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UNLOADING:-

The raw materials will be unloaded in the godown.

The sample seeds were taken and the lab test will be conducted to check the

quality of the seeds.

The three bags of the raw materials randomly selected and the sample cleaning

process will be done.

After that cleaning crushing also be done.

With that crushed oil the lab test will be conducted to know about the quantity

of the fatty acid which should be below 1.5%.

After that only the remaining bags will be sent to main production process.

CLEANING SECTION:-

GODOWN

SEIVING MACHINE

ASPIRATOR MACHINE

MAGNETIC SUPPLIER

DESTROYER

ROLLAR BOX

PACKING

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The seeds bag will be taken randomly from the godown and it will poured into

the Buhler composite system sieving machine for the removing of unwanted

material like sand, stone, etc…

The Sieving machine has three layers.

After the Sieving machine the seeds were sent to the Aspirator.

In that Aspirator the imperfectly matured seeds were removed by using the

suction process.

After that the seeds were sent to the Magnetic supplier

In that all the steel materials will gets removed in that seeds.

After that the seeds were sent to the Destroyer. In that the remaining wastes

will gets removed.

After that the seeds moved to Rollar box

And then the cleaned seeds were packed in the bags.

Lab test also be done.

Per bag – 75Kg of seeds.

CRUSHING SECTION:-

After the cleaning process the seed bags were taken and poured into the

crushing machine along with the palm jiggery

For every 75Kg of seeds 1.5Kg of palm jiggery were added

In that crushing machine steam is created which will use to crush the seeds

Two times the seeds were crushed

After crushing the oil will poured into the underground tank. And the oil cake

will also comes out separately.

After that the oil is sent for filter.

After the filter process the oil is sent to overhead tanks and then to centrifuge

filter.

After that the oil is sent to the package section through pipes.

At each and every stage the quality check will be done to get high quality

outcome.

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CLEANING

SECTION

1ST CRUSH

2ND CRUSH

1st FILTER

2nd FILTER

OVERHEAD

TANK

PACKAGE CENTRIFUGE

SECTION FILTER

PACKAGE SECTION:-

From the overhead tank the oil will move to the various sub tanks of each

packing machine.

Then the oil packing machine pack the oil in various packets and also those

sachets were packed into the box and it will sent to the godown

From there the oil will be dispatched to various parts and reach the customer

on time.

OVERHEAD TANK

SUB TANK

PACKING

LAB

TEST

UNDER

GROUND

TANK

LA

B T

ES

T

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6. SWOT ANALYSIS:-

Strength

Idhayam has a strong brand name.

Qualified and dedicated workers in the organization.

Idhayam has a good reputation among the customers. That means the product

is used by 1.5 million house wives all over the world.

Quality of products – the products of Idhayam possesses high quality.

Innovative product range – they have wide varieties of products.

Weaknesses

At present they are not doing any TV ads for their promotions this might affect

the reach of the product to the customer.

They do not have direct contact with their consumer this might also be a

weakness.

Opportunities:-

Groundnut oil is more widely used than sesame oil as there is high potential

for groundnut oil in the market. E.g.:- more people of Southern India use

groundnut oil.

Oil pulling concept- Idhayam wealth a product of Idhayam is an easy to

procure and use, sesame oil sachet of 10ml specially made for oil pulling. Oil

pulling using sesame oil would help to control diabetes, asthma, blood

pressure etc., and would induce peaceful sleep at night.

Threats:-

Government intervention in the pricing of the product.

Rural employment guarantee scheme of the government will make the labour

bill high.

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7. LEARNINGS:-

My Internship schedule:-

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The main learning from this Internship was in the sales department.

They taught me several things about how to sell the product by explaining in

words and also practically explained.

I met Mr. Senthil Kumar who was working as a distributor in Idhayam. He

does not know to speak English fluently but he compromises the customer

who is speaking in English frequently by trying to speak in English. This

taught me how to sell the product even if we are week in some things.

This helps me to finish my project successfully.

I made 10 customer to buy Idhayam Oil Pulling product and made 6000 Rs

worth sale in one month. This was a new experience for me to learn in

marketing.

Other than the project in sales department they asked me to fill the details of

the customer in Excell.

Myself along with the other two employees filled the customer details in excel

Distributors will sent those customer details through Emails, directly etc…..

We will fill the details and sent to the finance department and also to

dispatching unit to distribute the product to the customer at time.

In Business development department they asked me to go along with the

representative for the shop posters.

I visited more than 11 shops in two days.

In chairman’s secretariat they gave me some details of the speech of the

chairman’s.

In Information technology they asked to enter the contacts entry of

distributors and customer.

In banking department they insist me to go through the customer money

transaction lists.

In purchase department they asked me to note down the daily purchase like

seeds, jiggery, milk, sweets, stationary items etc…for the factory and office

along with the three more Idhayam staffs.

Overall I learned many new things from this Internship.

This internship helped me to know about the real industrial activity which in

turn helped for the better understanding of the concepts which have been

studied theoretically.

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This internship helped me to know the structural working of an organization

and the basic functioning of all the departments.

Employees are the back bone of the company. And also employee satisfaction

is very important for the growth of the organization by providing then safety,

excellent training and development system, Providing proper welfare facilities

to the employees etc…

8. MY OVERALL OBSERVATIONS:-

Quality:-

Quality is that it is being suitable for it’s intended purpose while satisfying

customer’s expectations and company’s growth. Idhayam mainly focuses on the quality

of their products as well as their services. Idhayam’s main competitive advantage was

their quality as they do not comprise on their quality for any reasons.

Employee Friendly:-

Idhayam treats its employees as its family. They will concentrate more on its

employee family benefits. Each and every employees are passionate towards their work

as if their own company. Employee satisfaction is highly concentrated.

Time Management:-

For an organization to be successful Time Management is the key factor Ensuring this

makes Idhayam most successful among their market revivals. Time delay on delivery of the

products are hardly an issue to Idhayam even though additional works are encountered it

would manage the time as per the work and the products will be delivered on time.

Customer satisfaction:-

Customer satisfaction is also the main key factor for the organization to reach

their goal. Idhayam mainly focus on their customer satisfaction. Idhayam will supply their

products which will meets the customer expectation and also they supply on time.

Others:-

Good hospitality approach towards the customers

Idhayam do not compromises any functions for any reason.

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Idhayam does not concentrate on their competitors because they have high

believe in their brand name, quality, service etc..

In Idhayam there won’t be any stock scarcity

From the day started till now they did not stop their production for the reason

of unavailability of the raw material.

9. RECOMMENDATION:-

At present they are not doing any TV ads for their promotions this might affect

the reach of the product to the customer. Because the other competitors were

promoting their products in TV ads also this might affect the reach.

They do not have direct contact with their consumer this might also be a

weakness. When we have a close relationship with the customer we can able

to know the customer needs easily and effectively.

In factory the production process from cleaning section to the packing section

it should be fully automatic. From cleaning section to the crushing section the

raw material is moved manually. This may delay in production. When it

becomes fully automatic the production rate will increases.

10. CONCLUSION:-

Overall I thank everyone who helped me to complete my internship. This internship

has helped me to gain knowledge. This experience gave me an opportunity to learn

new things about the organization culture. Not only the culture, this internship taught

me about more about the Idhayam brand. I wish to thank Mrs. Angel who helped me

throughout the internship program and also Mr. R. Jackson Gunaraj for his excellent

guidance. Finally I thank ASBA for making efforts to do internship which helped us

relate our theoretical concepts to the practical application.

I wish to thank V.V.V & sons edible oils limited (manufacturers of Idhayam) for this

great knowledge gaining experience for me.

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11. REFERENCE:-

http://idhayam.com/

http://idhayam.com/mantra

http://idhayam.com/sambandhi

http://idhayam.com/wealth

http://idhayam.com/tahini

http://idhayam.com/dots

http://idhayam.com/hardil

12. ANNEXURE:-

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MR V.R Muthu - Company CEO at Virudhunagar plant