CONTINENTAL COFFEE (India) LtdDUGGIRALA

BLOCK FIELDWORK 8 WEEKSIV Semester

Submitted by:HARIKRISHNA PRASAD NAIK.B

Regd No.Y9HR 20012

Under the guidance of

Dr. Nagaraju. BattuAsst. Professor,

Bommidala Dept. of HRM,Acharya Nagarjuna University,

Nagarjuna Nagar –522 210.

ACKNOWLEDGEMENTS

I am very glad to express my special thanks to

Mr. KRISHNA MANOHAR H.R. Team Leader and my guide

Mr.Shaik.Aly who gave me an opportunity to do this project in this

company.

I express my sincere thanks to Dr. Nagaraju. Battu, Asst.Professor,

Dept. of HRM, Acharya Nagarjuna University for giving his support to carry

out this project successfully.

I am very much thankful to Dr. Brahmanandam garu, Our Head of the

Department and also our Principal of Acharya Nagarjuna University

College.

CCL company history:-

Continental coffee (India) ltd., is established in 1995 at Duggirala Mandal, Guntur District, Andhra Pradesh State, India and its Head Office is at 7-1-24/2/D, ‘Greendale’, Ameerpet, Hyderabad, Andhra Pradesh, India. CCL is engaged in the manufacture of Instant/Soluble Spray Dried Coffee, Agglomerated/granulated coffee, as well as Freeze Dried Coffee. The company commenced its commercial operations in the year 1995. It is an ISO 9001:2000, HACCP and BRC Quality Management System (QMS) certified Company having attained a Two Star Export House status.

Duggirala Unit Profile:-

The duggirala Unit was started in the year of 1995, The single line

operation was started in 1995. In this line 6000 tines will be

manufactured per minute. The second line operation was started in

2003.

Continental coffee ltd duggirala Unit at a glance:

Duggirala unit is located in Guntur District, Duggirala Mandal. It is 16 km away fgrom vijyawada and 30 km below from Guntur town. Total Project Cost - Rs.550MM

Total area - 40 AcresBuilt area - 6 AcresGreen belt area - 36 Acres

Acquired Assets value:

Duggirala - Rs. 130 MMHyderabad - Rs. 117 MM

Market Potential of Industry:

duggirala - 99.4 MM casesHyderabad - 99.3 MM cases

Both duggirala an Hyderabad territories had a strong distribution network. On acquiring these territories company adopted entire distribution system to their advantage.

Sector:-

It is a private oriented manufacturing sector.

Capital Structure :

The company initially invested Rs. 270 Crores. Every year turnover is272 to290 Crores.

Nature of Product:

This company produces

Spray-drying

Freeze-drying

The Spray Drying Process

The Freeze Drying Process

Spray-drying - The most commonly used industrial method of manufacturing instant coffee is by the spray-dried process. The water is again allowed to evaporate, forming a concentrate. The concentrated coffee is sprayed from a high tower in a large hot-air chamber. As the droplets fall, the remaining water evaporates. Dry crystals of coffee fall to the bottom of the chamber. The high temperatures involved in this method do tend to effect the oils of the coffee and more flavour is lost.

Freeze-drying - The freeze-drying method preserves the most ‘coffee flavour’ but its a more involved procedure. First, the coffee is allowed to sit so the water evaporates naturally, leaving a concentrated coffee solution. This concentrate is then frozen to around -40 Celsius. The remaining water freezes into ice crystals. Sublimation (a natural process similar to evaporation) is used to remove the ice. What's left is dry grains of coffee

Production Process;

The Spray Drying Process

Spray drying is the most economic method of producing soluble coffee. The feed to the spray dryer is a mixture of concentrated aroma and hydrolysed fractions, with the preserved aroma components added. In order to maximize aroma retension, drying of the extract takes place under conditions that maintain low powder temperatures. Different types of spray dryers can be used for drying of cofee. Bulk density and colour control is possible by means of in-line gas mixers. Inert gas is injected into the feed system just prior to the nozzle atomizer used in the spray drying system.In cases where spray dried powders require further agglomeration, an additional process stage is used involving powder wetting, afterdrying and cooling. Control of weeting is carried out with water and/or saturated steam in an agglomeration chamber equipped with a rotating impacter. The agglomerates are then dryed and cooled in the attached fluid bed, followed by sieving and packing. Fines and oversize fractions are reprocessed within the agglomeration plant.

The Freeze Drying Process

Agglomerated wet coffee granules are frozen. For instant coffee this is a very important stage. Freezing too fast leads to large ice crystals and a very porous product and can also affect the colour of the coffee granulesFrozen coffee is placed in the drying chamber, often on metal trays.A vacuum is created within the chamber. The strength of the vacuum is critical in the speed of the drying and therefore the quality of the product. Care must be taken to produce a vacuum of suitable strength.The drying chamber is warmed, most commonly by radiation but conduction is used some plants and convection has been proposed in some small pilot plants. A possible problem with convection is uneven drying rates within the chamber, which would give an inferior product.

Condensation - The previously frozen water in the coffee granules expands to 107 its volume, the removal of this water vapour from the chamber is vitally important, making the condenser the most critical and expensive components in a freeze drying plant.The freeze dried granules are removed from the chamber and packaged.

1. Stages in Production process2. Green bean storage and cleaning3. Roasting4. Grinding5. Extraction / Clarification6. Evaporation / Aroma recovery7. Spray Drying / Agglomeration OR Freeze Drying8. Packing9. Qauality test

Selection ProcessThe stages upto and including extraction are an industrial version of normal coffee brewing. The subsequent drying process causes loss of volatiles, and with them, some of the flavour is reduced by evaporation of the liquor to increase the concentration prior to drying. There are two alternative drying processes, spray drying and the newer freeze drying. Spray drying is an established process in which liquid is sprayed through special nozzles and dried with the help of hot air. The dried particles are collected with minimum thermal degradation

The more expensive freeze drying technique involves freezing the coffee liquor into slabs. These are then ground up while still frozen and subjected to vacuum and mild heat to remove water. There is less loss of volatile flavour than in spray drying. However the technique also preserves any undesirable flavours. The freeze drying is only justifiable with coffees of the very highest quality, hence the decision in choosing the spray dryer is appropriate. The proposed plant incorporates a separate circuit for collecting the volatiles at the extraction stage. The evaporator is with aroma recovery system and the aromatic compounds are added back prior to spray drying. This helps to reduce flavour loss.

 The quantity of green bean to produce each kilogram of product is obviously important, and this yield figure has improved over the last 20 years depending upon the type of bean. However, for viability calculation purposes the same was taken at 2.5 kg : 1kg.The spray dried coffee powder can be further subjected to agglomeration. This process involves moistening, reheating and redrying the powder to produce granules. This enhances the appearances of the product, and has improved solubility.

Ingredients:

1. Water2. Sugar3. Flavour

Quality Control:

The company was granted the International Quality Systems Standard ISO

9001 : 2000 – Quality Management System Certificate in January, 2003 by

American Quality Assessors – AQA International, LLC, accredited by the

American National Accreditation Program for Registrars of Quality

Systems, ANSI-RAB.

CCL also has the stamp of approval from Food Cert.BV-Netherlands-FSS-

Food Safety System, in January 2004 for compliance with the Dutch

National Board of Experts – HACCP - Analytical Critical Control Point

standards. The qualified HACCP System standard declares that it covers the

company’s activities of procurement of green coffee, storage, processing of

Instant Soluble Coffee (cleaning, roasting, extraction, drying, agglomeration

and soluble coffee storage) including packing, packed product storage and

dispatch.

CCL has recently obtained the British Retail Consortium – BRC

Certificate, a stringent Quality Certificate which enables it to market its

product in the UK and European supermarkets. It is also, currently in the

process of obtaining Environment Management System Standard (EMS

14001) Certification

Man power particulars:

There are 325 permanent workers working in the Hindustan Continental coffee Limited duggirala. This company also engages the contract labour on daily basis according to the workload.

In this company 21 security people are working for the safety of the company. 06 women workers are also working in this company.

Staff - 121Workmen - 170Managers - 8Trainees - 26

-----Total: - 325

-----

Recruitment:

As per the sources this company mainly depends upon the campus recruitment and also relies on data bank. Also gives the paper adds to recruit the suitable people. The recruitment process will b done by the department head, H.R Manager, General Manager respectively.

Selection Process:

The selected procedure contain the following steps:-

1. Application senitinise

2. Call letters

3. Written test

4. First interview

5. Short list

6. Final interview

7. Negotiation with managing Director and P & A

8. Appointment letter is issued with adequate joining time given.

9. joining

10.Medical Test

11.Induction

Training and development in ccl:

After identifying the training needs of the employees by the H.R department the training programmes will be conducted respectively. This company boost of several career management processes to employee futures. Some of

these process are geared towards gauging the potential of the associates to move into the high level jobs.

Among those process the duggirala unit concentrates on one such process i.e., Talent Development Meets (TDM). The process is initiated when associates discuss their career plans and future direction in the organisation with their managers.

Some benefits of TDM Process:

Capability development. Training and development Associates movements and promotions A live database of associates, used for filing open positions when

required for Managerial positions another program called “Fast track”, to develop high potential executives across the country.

The four month program is built over 2 distinct phase, a month a long residential program at a premiere business school- followed by a 3 month cross functional orientations across the country.

Phase 1 is aimed at providing the participants with the knowledge

inputs and exposure to relevant management thoughts and provides an

overview of people management finance production, planning,

marketing and its applications. This includes computer skills.

Phase 2 is aimed at sharpening functional perspectives through focused project in the area of sales, finance, HR and marketing. Spanning 3 months phase 2 exposes the fast tract to business practices across the country.

Wage Administration:

The salaries in the company is Rs.3,000/- to Rs.1,00,000/- . Generally company pays the salaries to the employees on 31st of every month or 1st of every month.

Working conditions:

In this company the working hours of an employee is 8 hours per day.

Shift System:

There are 3shifts A,B,C and general shift.

General shift timing is 9.00 am to 5.40 pm. The team leader, functional manager etc., comes under the general shift, and all other production employees will come under the shift system.

Shift A start at 6.00am and ends at 14.00 pmShift B timings is 14.00pm to 22.00 pmShift C timings is 22.00 pm to 6.00am.

Shift rotation:

Every week the shift is rotated.

Health Programmes:

At the time my project work I noticed a mega eye and ECG, X-ray and

blood test to the company employees. These types of programmes are

conducted by the company every year for the welfare of the company. In

this company there is a nurse to look after the first aid for the welfare of the

employees.

Accident Preventive Measures:

Yellow lines marked on the ground near machineries comes under accident preventive measures. We can also find a red water pipe line surrounded the factory as a precautionary measure against fire. In this company there are Co2 cylinders as a precautionary measure. The company also providing shoes to the employees working in this company for their safety.

This is the first plant in India certified by quality wise, safety wise and environmental wise.

Welfare Programmes:

Statutory facilities:

According to Factors Act, 1948 they are maintaining the statutory facilities.

Cleanliness:

According to Section 11 of the Factories Act, 1948 cleanliness is maintained at syrup rooms and packing section. Even the visitors are not allowed to touch the glasses or walls at those specified places and non authorized persons are not allowed to enter into syrup rooms.

Ventilation:

According to Section 13, Factories Act, 1948 artificial ventilation is provided. We can also find big size fans even in bottling section.

Lighting:

According to the section 17 of Factories Act, 1948 they are maintaining every part sufficient suitable lighting.

Drinking Water:

According to Section 18 of Factories Act, 1948 drinking water facilities are available in this company. For cool drinking water necessary arrangements was also made by installing refrigerators in the company.

Latrines and Urinals:

According to Section 19 of Factories Act, 1948 they are maintaining latrines and urinals separately for both men and women.

Welfare :

Washing facilities:

There is washing facilities available to the employees working in the company. In fact washing facilities is very essential because cleanliness is very essential for the hygienity for keeping high standards in maintaining reputation in the world wide market.

First aid :

According to Factories Act, 1948 Section 45 sufficient first aid boxes

are provided in this company. A nurse is also appointed for the welfare of

the employees in this company.

Canteen:

According to Section, 46 of Factories Act, 1948 a canteen is running in this company. Employee have to contribute five rupees and the employer pays the remaining fifteen rupees towards their meals.

Non-statutory facilities:

Housing facilities:

There is no housing facility to the employees working in the organization. Only house rent allowance is provided to functional managers and executives.

Co-operatives:

From each employee there is twenty rupees deduction from the

salary and in the form of loans the amount will be given to the finance

needy employees.

Transport facilities:

Transport facility is available in this company. Two buses are provided by the company, one bus running towards Guntur and another running towards Vijay Wada.

Corporate Social Responsibility:

Due to social responsibility this Multi National Company is doing its level best in the following ways:

Health camp Renovation of health center - Doctors visits Renovation of school building Water restoration project Filters for water purification Drinking water camp Tree plantation along with guards. Dictionaries to under privileged students Children’s day celebrations in association with an NGO Free computer coaching camp for rural pupils. Rain water harvest pit at Mangalagiri court Helping hand to needy.

Industrial Relations:

Trade Unions:

There are no trade unions in this company.

Joint committees:

Actually there is no joint committees. There is a workers committee consisting of seven members. If any problems arose in the industry those people approach the members of the workers committee and that works committee members approaches personnel department for the problem solving.

The Employment Exchange (Compulsory Notification of vacancies) Act, 1959:

Employment Exchange means “any office established by the government for the collection of information either by keeping of registers or otherwise respecting

1. Persons who seek to engage employees2. Persons who seek employment3. Vacancies to which persons seeking employment may be appointing.

Employment exchange act mainly focus on lower level workers in this act other is no obligation imposed on employer that he must recruit a person offered by employment exchange.

Payment of Wages Act, 1936:

Salary preparation look after the HR Manager the organsiation paying the salaries before 1st of every month.

Salary calculated by number of days present and number of days absent.

According to this act the organisation providing health, safety and welfare facilities.

Factories Act, 1948

Workmen Compensation Act, 1923

Employee state insurance Act, 1948:

For application of this act the basic salary should be below Rs.10,000/-

Total contribution is 6.50%

Employee contribution 1.75%

Employer contribution 4.75%

Every month the company should pay the contributions below the 15 th

of every month, otherwise the company has to pay 2% extra as penalty.

If the employee basic salary exceeds Rs.10,000/- ESI Act is not applicable to the employees. For those employees a insurance claims will be available.

Under the maternity benefit the women employee can use upto rupees twenty thousand for her medical expenses and also can take 12 weeks leave.

Paternity leave is only 7 days.For every six months the ESI returns should be duly submitted.Returns date is April to September and October to March.

Employees provident fund and miscellaneous provisions Act, 1952:

Under this Act the total contribution is 25.61%

Employee contribution is 12% - Account No.01Employer contribution is 13.61%From the employer contribution 8.33% will goes to pension account No.10.Administration charges - 1.10% - Account No.02Inspection charges - 0.01% - Account No.22EDLI - 0.50% - Account No.21Provident fund - 3.67% - Account No.01

Before 21st of every month the payments should be made. This act is applicable only to those employees who are receiving Rs.6,500/- as basic salary. Every year the company has to duly submit the returns under this act.

Industrial employment (Standing orders) Act, 1946

Industrial disputes Act, 1947

Findings:

The continental coffee company utilize the waste water for plantation purpose through refilter.

The company also maintaining rain-harvesting project. The Ccl company located in very good environmental situation.

Conclussion:

The Continenta coffee ltd company is first plant in India which is best regarding to Quality, Safety, Environmental and also got certified from the Government. And it have also ISO 9001-2000, ISO 14001-2004 certificates. The duggirala unit was awarded the best plant in India during summer 2002. This company got A.P Pollution control board award for excellence and water conservation and pollution control in year 2003. It got Best Management award in 2005 by Labour department of Andhra Pradesh.