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AN ORGANISATIONAL STUDY AT
KLF NIRMAL INDUSTRIES PVT.LTD, IRINJALAKUDA
Course Code (cc-21)
Submitted in partial fulfillment of the requirement for the award of Degree of
MASTER OF BUSINESS ADMINISTRATIONMahatma Gandhi University, Kottayam
Submitted byNeethu V.S.
(Enrollment no: 10/101/PF/112)
Under the supervision ofMs. Mary T.L.
ST. JOSEPH’S ANNEXE, IRINJALAKUDA(Mahatma Gandhi University Off-Campus Study Centre)
Centre Code: 101
School of Distance EducationMahatma Gandhi University, Kottayam, Kerala-6865
2010-2012
ST.JOSEPH’S ANNEXE IRINJALAKUDA
(MAHATMA GANDHI UNIVERSITY OFF-CAMPUS STUDY CENTRE)CENTRE CODE: 101
Certificate
This is to certify that this organization study report entitled “AN
ORGANISATIONAL STUDY AT KLF NIRMAL INDUSTRIES PVT.LTD,
IRINJALAKUDA” is a bonafide record of study done by NEETHU V.S.,
Enrollment No: 10/101/PF/112, under my guidance and supervision and that
it has not previously formed the basis for the award of any Degree, Diploma,
Associate ship or fellowship to her.
Dr.Sr.Thressiama K.V. Ms. Mary T.L.
Course Co-ordinator Guide
Irinjalakuda
Date-
Submitted for viva examination held on……………
External Examiner
DECLARATION
I, NEETHU.V.S, hereby declare that the organization study report entitled “AN
ORGANIZATIONAL STUDY AT KLF NIRMAL INDUSTRIES,
IRINJALAKUDA” submitted in partial fulfillment of the requirement for the award
of the Degree of MASTER OF BUSINESS ADMINISTRATION of Mahatma
Gandhi University, Kottayam, is a record of study done by me under the supervision
of Ms. Mary.T.L, Department of Commerce and Management studies, St. Joseph’s
college Annexe, Irinjalakuda.
I declare that this organizational study report has not formed the basis for the award
of any Degree, Diploma, Associate ship, Fellowship or other similar title recognition.
Place: Irinjalakuda NEETHU.V.S
Date: Enrollment.no.:10/101/PF/112
ACKNOWLEDGEMENT
This project would not have been a successful one, without the co-operation of a lot
of people, whose support and guidance cannot be left unnoticed, and above all, the
blessings of Lord Almighty.
I would like to express my profound gratitude to Dr. Sr. Anee Kuriakose, the
principal of St. Joseph’s College, Irinjalakuda. I wish to thank Dr. Sr.
Thressiama.K.V, Course Co - ordinator, St. Joseph’s college Annexe, Irinjalakuda,
for their valuable guidance and suggestions.
With great respect, I place on record my deep sense of immeasurable gratitude to
Mr. Thomas.K. I, Head of Department of Commerce and Management Studies, for
his valuable support and assistance. The main motivation and driving force behind
my study was Ms. Mary. T. L, respected guide. She guided me at various stages of
my study . I am abundantly grateful for her incomparable co – operation and
encouragement which has made me confident enough to come out with such great
success. I would like to express my deep sense of gratitude to all staff members of
MBA Department. St. Joseph’s college Annexe, Irinjalakuda,for their support
extended to me throughout my endeavor.
I acknowledge my sincere thanks to Mr. Paul Francis( manager) for giving me
proper guidance to conduct my organizational study.
I would like to express my grateful to the officials and staff of KLF for their whole
hearted co –operation in the collection of the data which is needed for this work.
Finally I thank my family and friends for their eternal love and support which
enabled me to complete this organizational report successfully.
TABLE OF CONTENTS
CHAPTER TITLE PAGE NO1
1.1
1.2
1.3
1.4
1.5
1.6
Introduction
Introduction to the study
Scope of the study
Objectives of the study
Significance of the study
Methodology of the study
Limitations of the study
1-4
1
1
2
2
3
4
2
2.1
2.2
2.3
2.4
Industry profile
Introduction to the industry profile
Global scenario
Indian scenario
State scenario
5-11
5
6
7
8
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
Company profile
History of the company
Vision and mission
Objectives of the company
Capital of the company
Competitors
Future prospects and growth plans
Board of directors
Trade union presence
Production units
Partner’s role of company
12-24
12
13
13
14
14
15
15
16
16
17
3.11
3.12
3.13
3.14
3.15
3.16
3.17
3.18
Raw materials of company
Purchase arrangement
Manufacturing Process of company
Pricing of the company
Sales promotion
Market share
Organization structure
Company life cycle
17
18
18
19
20
20
22
23
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
Department study
Production department
Marketing Department
Finance department
Human resource department
Purchase department
Filling and packing department
Sales and dispatching department
Accounts and administration
department
25-47
25
28
32
34
38
40
42
45
5 SWOT Analysis 48-49
6 Suggestions and Conclusions 50
Bibliography
LIST OF FIGURES
Figure No Title Page No
3.1
3.2
3.3
4.1
4.2
4.3
4.4
4.5
4.6
4.7
Market share of KLF
Organization structure
Company life cycle
Production department
Production process
Marketing department
Marketing distribution channel
Finance department
Human resource department
Sales and dispatching distribution
channel
21
22
23
26
27
29
31
32
34
44
CHAPTER -1
INTRODUCTION
1.1 INTRODUCTION TO THE STUDY
Here in this organization study, the researcher doing a deep study of KLF
Nirmal industries. KLF oil industries is one of the leading manufactures of coconut
oil industries in the southern states in India. It is the first fully automatic plant in
Kerala. It reveals that the organizational strength and operating process. With the
history of more than sixty years in the edible oil industry, KLF Nirmal is among the
top selling brands of coconut oil in the country. In the recent years, KLF oil industries
won good position in the minds of the people. It has its on vision and values. The
industry gives light to the future needs also.
KLF oil industries has maintained a sustained growth since its inception to
become one of the India’s premium coconut oil manufacturing companies and spread
its wings across the states Karnataka, Tamilnadu, Andra Pradesh, Maharashtra, Orissa
and Chatisgarh apart from its home states of Kerala and the gulf countries of U.A.E,
Bahrain, Qatar, Oman, Kuwait and Soudi Arabia, catering to the needs of its
customers.
KLF Nirmal industries situated in Irinjalakuda, in Thrissur district. Kerala is a
leader in the Indian oil industries and a significant global player providing customer
delight and enhancing partners share value. The company was established by Sri.
K.L. Francis, a visionary businessman whose industry and foresight have made KLF
Nirmal industries a name to reckon with Irinjalakuda in Thrissur district.
1.2 SCOPE OF THE STUDY
This study is conducted to know the structure and working of the departments of
the organization of the KLF oil industries, established by Mr. K.L. Francis. This study
would prove a base for the future plans and it would help to get a full picture of the
organization. This study mainly focuses on the organization, its products and various
departments. This study would help to know about the history of the company and to
find out the product and market share of the company and to understand the
organizational structure as well as the working of the departments of the organization.
1.3 OBJECTIVES OF THE STUDY
The study mainly focuses on the organization, its products and its main
departments. The main objective of this study is as follows:
To gain knowledge about the organization, its functions and managerial aspects to
the company.
To analyze all the functions of each departments in the organization.
To know about origin and history of the KLF Nirmal industries.
To analyze the efficiency of the organization.
To know about their competitors in market.
To identify the board of directors, officers and number of labours in the company.
To know trade union of the company.
To know market share and product line of KLF Nirmal industries.
To get information about the departments of KLF Nirmal industries and their
working
To find out the strengths, weaknesses, opportunities, and threats of the company.
1.4 SIGNIFICANCE OF THE STUDY
Organization study helps the students to gain practical knowledge of various
processes involved in production of goods to marketing of goods. There is a gap
between theoretical knowledge and practical knowledge. This study bridges the gap
between theoretical knowledge and practical knowledge. The main aim of the study is
to gain knowledge.
1.5 METHODOLOGY OF THE STUDY
Research methodology is a way to solve the research problem. It may be explained
as a science of studying how research is done scientifically. Research means to search
new knowledge. Methodology states what and how the researcher should undertaken
during the study. This includes the overall sampling design, the data collection
methods, statistical techniques etc. The research methodology gives an outline of the
study and approaches adopted for field study, the measurement concepts and the
procedures are employed for the analysis of the data collected.
1.5.1 Primary data
Primary data is collected through surveys and interviews. It happens to original in
character.
1.5.2 Secondary data
Secondary data means that are already available. This data has already been
collected and analyzed by others before. It is collected from company records,
publications, books and journals.
1.6 LIMITATIONS OF THE STUDY
The data collected is limited because of personal bias.
The busy work schedule of respondents restricted to get detailed information.
The study was conducted with in a short period of time, so time was major limiting
factor.
The information collected as secondary data may be incorrect as it was not collected
directly from source.
CHAPTER -2
INDUSTRY PROFILE
2.1 INDUSTRY PROFILE
For the about past 4000 years coconut has been using as a food and as a raw
materials for the pharmaceutical products. Coconut and their multiple products were
seen as sustainable resource which influenced every aspects of lives of tropical
communities.
The kernel and its water are most useful things. From the kernel the coconut
oil and coconut milk are produced. During the world war 2, the water of young green
coconut was used as the substitute for saline drip saving the life of many ailing
soldiers.
Coconut oil extraction has remained a traditional industry in the processing
sector. The price of coconut continuous to be dependent on the price of the coconut
oil. Coconut oil is produced mainly by three methods namely rotaries, the oil
exporters and chakku’s.
The expellers are dominating the scene statistics show that there are roughly
about 1400 oil mills in India producing nearly 450000 tones of coconut oil every year
of which 30 % goes for cooking purpose, about 30% for toiletry purposes and the rest
for industrial application.
Most of the large scale industries market their product in attractive pack and
pouches which has a ready acceptance among the urban consumers. The small scale
unit sell their product mainly in loose form. Oil marketing and allied industries
provide regular employment for thousand of persons.
The modernized plants help in the extraction of the coconut oil to the maximum
possible level and this ensure the low cost of production of the product. Modern
methods of packing and the new areas of usage of coconut oil have increased.
There is a stiff competition between different brands available in the market.
The introduction of coconut oil to the northern part of the country. Whether other
edible oils than coconut oil were used for cooking and the popularly gained by the
product have proved it to be a threat for the other edible oils.
In India at present, there are more than 50 firms who manufacture and market
the branded coconut oil in small packets of these 18 brands including that of kerafed
and market fed originated from Kerala.
The state trading corporation is also entering the field and they have already
test marketed their product inside and outside the country. Even though international
price of coconut in lower than the domestic price.
The demand for the branded coconut oil in small packs is price inelastic
provided quality is ensured and packed in attractive bottles. Some firms in Bombay
and Calcutta are exporting coconut oil to the middle east market and foreign
countries.
All the above factors indicate that the coconut oil industry is a fast flourishing
industry.
2.2 GLOBAL SCENARIO
The coconut, having originated in South East Asia including Austral Asia
appears to have dispersed eastwards towards the pacific and further in to America,
towards the West, it moved to India and Madagascar over the calm tropical waters.
Although, it was often considered as an ocean dispersed nut due to its sustenance
viability in sea water for over 100 days, sea traveler were also responsible for
worldwide introduction and propagation of Coconut plantation. This is significant
from the fact that Spaniards introduced it into West Indies and Southern shores of the
Caribbean sea, the Portuguese introduced it to Bahia and other parts of Brazil,
Polynesians Sea-Farers further spread it to different Islands of pacific, the Arabs
disseminated it on the African coasts and maritime Tamils together with the Mariners
of the Bengal coast distributed it into the lands of the Indian Ocean.
2.3 INDIAN SCENARIO
The coconut is not only significant in socio cultural needs of our society, but also
has gained considerable importance in the national economy as a potential source of
rural employment and income generation among the plantation crops. The
countrywide demand for coconuts both for edible and non-edible purpose, the
adaptability of coconut palm to grow under varying soil and climatic conditions has
generated keen interest among the people of even non-traditional zones in the country
to plant a few saplings in their homestead gardens. The coconut palm requires a warm
climate without greater diurnal variation of temperature. The ideal mean temperature
is usually at 270C and the average diurnal variation between 50C and 70C. The palm
grows best under a well distributed rainfall between 1,300 mm and 2,300 mm,
throughout the year. Even higher precipitation up to 3,800 mm is tolerated, provided
that soil drainage is good. The palm requires plenty of sunlight and does not flourish
in cloudy regions. The young palms do grow under shades of old palm during
replanting but requires sufficient room for roots and light for growth. Therefore, it
makes desirable to remove old palms when palm trees attain the age of eighth year.
The growth of palms towards the light or their heliotropism could be noticed on the
seashore plantations. The coconut palms flourish well on sandy soils along the sea
coast, but also grow on various types of soil, provided there is free-drainage and
allow unrestricted root development and aeration, viz Alluvial soils (Godavari delta),
Lateritic soils (Red loam) in West Coast. Based on climate, soil, physical and
chemical characteristics and the length of growing period, India is broadly delineated
into 20 agro-eco regions, 60 eco sub regions. The coconut palms are grown in most of
the zones, except sub tropic and temperate regions, which includes 19 states and 3
union territories in the country. However, they are favourably adapted to coastal Agro
ecosystem-having coastline of 8129 km. and its Peninsular region bounded by the
Arabian sea on the West, the Bay of Bengal on the east and Indian ocean on the
south. Andaman and Nicobar Islands in the Bay of Bengal and Lakshadweep Islands
in Arabian sea are unique inland eco-system where coconut plantation is widely
grown.
2.4 STATE SCENARIO
The coconut palm being a small land holder’s plantation crop grown in 1.89
million hectare area in the tropical belt of the country extending from Kerala, Karnataka,
Tamil Nadu, Andhra Pradesh in south, Gujarat, Maharashtra in west, Orissa and West
Bengal in the east, Assam and Tripura in the North Eastern region of India and is a
means of living for millions of people inhabiting in the traditional and non traditional
coconut growing states and union territories. The islands of Andaman and Nicobar
and Lakshadweep are other traditional coconut areas. Since the coconut crop has a
national acceptance due to country wide demand either for edible, non-edible or
religious purpose, it has triggered keen interest among people of even the non-
traditional states to try few saplings in their home stead gardens. The major socio-
economic feature of this plantation crop is that it is predominantly cultivated in small
and marginal holding and with medium resource to poor farm environment having
less marketable surplus. It has been reported that the national average productivity of
coconut in India is very low i.e. around 40 nuts per palm per year. The low
productivity of coconut crop in the country has been on account of several reasons,
i.e. lack of adoption of scientific cultivation practices to enhance productivity, which
helps in bringing down the cost of production. In most of the small coconut holdings,
the soil nutrients and water are limiting factor in crop production. The unique nature
of Indian coconut sector is the rain fed nature of crop cultivation coupled with
practicing subsistence farming which often leads to low level returns from the
holding. It can be seen in the foregoing paragraphs that there is distinct difference in
the pattern of distribution of this crop in the country. Kerala, the southern most state
situated along the West coast is a major coconut growing state. Except in Kerala and
a few small states and union territories, coconut is not grown contiguously but limited
to only congenial belts accounting to an insignificant portion of the total arable
agricultural area. Kerala, Karnataka, Tamil Nadu and Andhra Pradesh are therefore
the four major coconut producing state, sharing 90.8 per cent of the total area,
whereas the contribution of other states / union territories is only 9.2 per cent.
2.4.1 Strength of coconut industry
One of the leading producers of coconut in the world producing 13 billion nuts per
annum.
Coconut area distributed in 18 states and 3 union territories under different agro-
climatic conditions.
3000 year’s tradition in coconut cultivation.
Premier coir manufacturing country in the world.
Producer of best grade milling copra in the world yielding high grade coconut oil
known for its aroma and flavor.
Large number of farmers co-operative societies in primary processing and marketing.
Govt. agencies such as kerafed, state trading co-operation Kerala state marketing
federation and Karnataka state marketing federation in manufacturing of branded
coconut oil in small packs.
Wide range of coconut products both edible and non- edible available for exports.
Technical know-how and trained manpower for the manufacture of various coconut
based products.
Availability of research support by reputed research organizations such as CSIR,
ICAR and DRDO.
Good number of cultivars/varieties having specific nut characteristics
2.4.2 Coconut products
Tender coconut water
Copra
Coconut oil
Raw kernel
Coconut cake
Coconut toddy
Coconut shell based products
Coconut wood based products
Coconut leaves
Coir pith
2.4.3 Coconut oil
Coconut oil is extracted from the kernel or meat of matured coconut harvested from
the coconut palm(cocos nucifera) throughout the tropical world it has provided the
primary source of fat in the diets of millions of people for generations. It has various
applications in food, medicine and industry. Coconut oil very heat stables it makes an
excellent cooking and frying oil. It has a smoke point of about 360 of (180c) because
of its stability it is slow to oxidize and thus resistant to rancidity, lasting up to two
years due though saturated fat content.
2.4.5 Benefits of coconut oil
Some of the benefits are:
Promotes health of our heart.
Supports a healthy metabolism.
Support our immune health system.
Provides us with an immediate energy source.
Helps to keep our skin healthy and good looking.
Supports the proper functioning of our thyroid gland.
2.4.6 Commercial opportunities
The coconut based industries provides full time or part time employment to 2
million people in India. India is a country producing nearly 25% of world’s coconut
products. Other major countries producing coconut are Philippines and Srilanka.
Coconut oil contributes 7%of the total export income of the Philippines, the world’s
largest exporter of the product.
In India more than 90% of production is contributed by the 4 southern states:
Kerala
Tamil Nadu
Karnataka
Andhra Pradesh
CHAPTER -3
COMPANY PROFILE
3.1 HISTORY OF THE COMPANY
The history of KLF Nirmal industries starts when a family started an oil
industry at Irinjalakuda under the name ‘KPL oil mills’ in 1944. This is still
considered as one of the pioneers of coconut industry in Kerala. When KPL oil mills
get in to very smooth working order, Mr. K. L. Francis handed over its executive
control to the younger generation and moved on to new areas of business. Now the
company produces about 8000 tones of coconut oil in the brand name KLF Nirmal
and has an annual turn over of 85 crores.
The KLF Nirmal industries were established by Sri. K. L. Francis in the year
1998. K. L. Francis is born in to a traditional business family in the small town of
Irinjalakuda in Thrissur district of Kerala. Mr. K. L. Francis pioneered the practice of
procuring copra directly from farmers and redefined the indegious oil extraction
process. The residue from the extraction process converted in to cattle feed. This
company was formed, as a partnership at will. The partnership deed was executed on
10/11/1990 and registered under the Partnership Act of 1932. The plant is situated in
a plot of 14 acres near by Christ college Irinjalakuda.
With a history of more than 60 years in the edible oil industry, Nirmal is among
the top selling brands of coconut oil in the country. Adhering to the highest quality
parameters from copra procurement through processing to packaging, Nirmal is
synonymous with what’s pure, whole some and healthy in edible oil with a state of
the act extraction and packaging plant located at Irinjalakuda in Thrissur district of
Kerala. Nirmal produces high grade coconut oil and gingelly (sesame)oil.
The company is an associate concern of KLF group concern. The company has
made tremendous achievements in the domestic market and has recently moved to the
international business.
3.2 VISION AND MISSION
Vision
“Our vision is to be the No.1 producer of high quality coconut oil in the country, to
be the one brand that consumer across the world identifies and recognize to be the
best in its category.”
Mission
“our mission is to produce edible oils of the highest quality by adhering to
international standards industry best practice, and by inculcating a work culture
focused on innovation and positive change.”
3.3 OBJECTIVES OF THE COMPANY
The main objectives of the company are:-
To provide quality products at best and suitable price.
To make sure about the customer satisfaction to enhance the exporting of gingelly oil.
To implement new technology to promote the production of gingelly oil.
To produce premium quality coconut oil and gingelly oil using VISIC technology.
To provide sound awareness of the people about VSIC technology through
advertisements.
To make available the KLF Nirmal products globally.
To increase the annual turnover of the company.
To increase the market share of the KLF Nirmal oils.
To implement new technology to crushing the copra for extracting oils.
Vaccumized Steam Injected Cooking (VSIC)
VISIC Technology is a unique method of processing edible oil those results in
other moisture content, less chance of the oil becoming stale and increased product
shelf life. Reduced moisture content allows the oil to heat up faster while also
minimizing table spread, besides contributing to energy savings. VISIC Technology
also ensures uniform cooking of food items, which in turn enhances palatability.
3.4 CAPITAL OF THE COMPANY
KLF oil industries was started with an initial capital of 7500000 in plants and
machinery and partners capital was 500000 divided among the partners as follows.
Partners no 1 …….. Mr. John Francis …….. Rs. 105000
Partners no 2 …….. Mr. Sunny Francis …….. Rs. 165000
Partners no 3 …….. Mr. Paul Francis …….. Rs. 165000
Partners no 4 …….. Mrs. Beena John …….. Rs.65000
Present capital ………. 2.40 crores
3.5 COMPETITORS
Serve competition exists in the oil market. Most of the people in Kerala, and many
other southern states of India use coconut oil for cooking and this make the
competition very severe. The various marketing strategies followed by the KLF
Nirmal industries help it to get a big share of the market.
The main competitors are:-
Parachute oil
Kera coconut oil
KPL shudhi oil
Thanima coconut oil
3.6 FUTURE PROSPECTS AND GROWTH PLANS
Major growth plans of the concern are:-
Providing information about the VISIC technology to the people.
Appointing skilled workers in research and development department to ensure the
quality of the oil.
Implement new technologies to reduce the time taken for the crushing the copra.
Enhance the production of sesame oil and promote the product through
advertisements.
By implementing these plans, making better prospects of the company.
Enhance the export of the coconut oil.
3.7 BOARD OF DIRECTORS
Mr. John Francis ………. Director
Mr. Sunny Francis ………. Director
Mr. Paul Francis ……….. Managing Director
Mrs. Beena John
Mrs. Soniya Sunny
Mrs. Sumi Paul
3.8 TRADE UNION PRESENCE
In KLF Nirmal oil industries, trade unions were started in the year 2000. There are
two types of trade unions namely:
CITU
CITU means CENTER OF INDIAN TRADE UNION, 35 workers of the company are the
members of this trade union.
INTUC
Indian National Trade Union Congress is the trade union of Indian National
Congress. It was established in may 3rd 1947 and is affiliated with the ICFTU Asia
and Pacific Regional organization, According to provisional statistics erom the
ministry of labours.
3.9 PRODUCTION UNITS
Apart from the leader in its home states, KLF has strong presence on the states of
Karnataka
Tamil Nadu
Andhra Pradesh
Maharashtra
Orissa
Chhattisgarh
Its success in the domestic market has urged the group to carry out business in the
international market. KLF Nirmal is now being exported to middle countries like.
Bahrain
Qatar
Kuwait
Saudi Arabia
Apart from the company has strong connections in various countries like
Philippines, Indonesia, Srilanka, Bangladesh and Kenya.
3.10 PARTNERS ROLE OF COMPANY
All the affairs and transactions of the firm are controlled and managed by the
managing partners. Each partner takes an active role in the management of the
various activities and functions of the concern. The managing partner Mr. Paul
Francis looks after the purchase and production carried out by the firm. Mr. Sunny
Francis controls the banking and marketing functions of the firm. He represents the
firm on all proceeding of the partnership and for all revenue taxation including all
Government and all a quasi-government transaction.
3.11 RAW MATERIALS OF COMPANY
Essential raw material of the KLF oil industries are coconuts(copra) and sesame,
copra are mainly purchased from the copra farmers and the processors of places like
Thrissur, Malapuram, Kozhikode, under a special working board or developed by the
company Gingelly (sesame) is mainly purchased from Tamil Nadu. The procurement
of the bottles, tins, cans etc also has vital role in the coconut oil business. These
bottles, tins and cans are manufactured at the unit located in Thrissur, and Aluva.
3.12 PURCHASE ARRANGEMENT
The quality of the coconut oil is directly oil is directly related to the quality of
copra. To ensure this KLF has established a network of five purchasing centers in
Kerala for directly purchasing graded copra from the copra processors and farmers.
All of the collection centers are situated in coastal area. All these centers are equipped
with the infrastructures like copra drying yard, mechanical dryers, and storage
godown etc required for processing the copra at the point of purchase itself without
any delay. This is very important because copra can deteriorate in quality very soon
and fungus will form on it, if not processed and fully dried immediately after the
purchase
3.13 MANUFACTURING PROCESS OF COMPANY
Dried copra is paned through conveyor to drier where it is steamed. This steaming
is done to remove all the left over moisture from the copra after drying as moisture
free copra will give fine coconut oil. After steaming the copra, It is sent through a
cradle conveyor to a “cutter” where the copra is cut into pieces.
After the cutting of copra, the pieces are sent to a “silo” through a clevator and there
are the materials are stored the next step is cooking of copra. The copra is cooked in a
cooker and this process help to remove all the remaining moisture in the full dried
copra. It enhances it special lingering aroma. Then the copra is sent for crushing. The
crushing is done in three stages where 505 of the oil is extracted in the first stage,
12% in the second stage and in the final stage of crushing about 5% of oil can be
extracted.
It is to be noted that the coconut copra consists of 65% oil, 30% cake and 5% waste.
After extracting the oil, there is the filtering process to give oil crystal clarity. This
filtered oil is transferred in to the research and development wing to ensure the
quality of the oil before packaging. The R & D wing includes world class equipments
to ensure the quality of KLF Nirmal oils.
After quality checking in the lab, the filtered oil is sent to a clean oil storage tank
and then to multi-head automotive volumetric liquid filling machine forme where oil
is filled in bottles, sachets, tins and jars.
3.14 PRICING OF THE COMPANY
There is a strange situation prevails in the oil industry and price fixation of
coconuts. Through copra is made from coconuts and coconut oil is from copra, the
price of coconuts and copra is fixed on the basis of coconut oil in the wholesale
markets
KLF Nirmal products are sold at a price fixed by taking the following factors
into consideration.
Cost of copra and seasame
Direct charges
Competitive price
Profit margin
Market rates
The pricing policy adopted here is the penetration pricing in which the products
are sold for a price just below the price of the competing product, thus they try to
increase the sales.
3.15 SALES PROMOTION
KLF oil industries have conducted various activities for the promotion of their
sales. The various steps used by the company are:-
Organizing “Healthy Hair Competition” in the women’s organizations in the different
parts of the state of Karnataka.
Taking part in various exhibitions and trade fairs.
Advertising the products on television, radio, in fasion and family magazines and
newspapers. This to done by “valappila communications” (Ad agengy) , Thrissur
Providing free consumer items like comb, teaspoons etc, along with consumer packs,
cans and tins.
The company has three brands ambassadors film stars Mr. Innocent, Ms. Meera
jasmine and Mrs. Anju Bobby George.
3.16 MARKET SHARE
KLF oil industries are sellers of coconut oil and sesame oil in bulk and consumer
packs under the brand name “KLF NIRMAL”. The sale is made to six states in India-
Tamil Nadu, Karnataka, Andra Pradesh, Maharashtra, Orissa and New Delhi.
These are in containers of 20kg, 15kg, tins and cans, 5kg cans, 2ltr cans,1ltr bottle,
500ml bottle, 200ml bottle and 100ml bottle. KLF oil mills sell the products through
fifteen against in those states on consignments basis. The daily sale of the concern
come to about 10 tones. A lot of incentives are given to distributors and dealer.
Distributors are given 2% commission of their turnover.
Company has computed 30% of market share in the Kerala market. VISIC
technology helps them to achieve a vital place in oil industry.
3.16.1 Figure showing Market Share of KLF
KPL; 36%
KLF; 30%
PARACHUTE; 20%
OTHERS; 24%
MARKET SHARE OF KLF
Figure: 3.1
3.18 COMPANY LIFE CYCLE
Company life cycle refers to different stages through which the company passes
away during its life time or operational time. KLF life cycle starts in 1960s ,i.e. when
the company starts its business operation.
3.18.1 Figure showing Company Life Cycle
Sales growth
And
profit introduction
0 1970 2010
Time
Figure 3.3
3.18.1 Introduction stage
This is the first stage in the life cycle of company. The introduction stage of the
company is 1960s. The company starts its business operations in this stage and the
profit was very low. It is a market pioneering stage to the company.
3.18.2 Growth stage
This is the second stage of the life cycle of the company. This stage cover end of
1960s and starting year of 1963. In this stage the sales and profits of the company
increases. The company focuses on the customer satisfaction and better customer
care. In this stage the company has to face severe competitions from other oil
industries. In this stage the company introduces new sales promotional activities and
new technologies as the part of changing marketing strategy.
The last stage of the company life cycle is decline. At this stage the competition
becomes severe. Sales and profit show a downward trend. More promotional
activities can be introduced in this stage to attract new customers.
3.18.3 Present position of the company
The financial results of the company and the increasing business operations show
that the company is in now in the growth stage. Increasing advertisements and quality
services is mainly contributed to the growth of the company and its operations.
CHAPTER -4
DEPARTMENT STUDY
4.1 PRODUCTION DEPARTMENT
In KLF oil industries, the production department is controlled by the
production manager; copra is the vital raw material for the production of oil . The
process of manufacturing stars when the finally dried copra is passed through a
conveyor to drier when it is steamed. The steaming is done to remove all left over
moisture from the copra. After drying moisture free copra will give fine coconut oil.
After steaming the copra, it is sent through a raddler conveyor to a cutter where the
copra is cut in to small pieces. After cutting the copra, the pieces are sent to a silo
through an elevator and their materials are stored.
The next step is the cooking in a cooker and this copra is cooked in a
cooker and this process helps to remove all the remaining moisture in a full dried
copra and this enhance its special lingering aroma.
Then the copra is sent for crushing. The crushing is done in 3 stages
where 50% oil is extracted in the first stage, 12% in the second stage end the final
stage of crushing about 5% of oil can be extracted, it is to be noted that coconut copra
consist of 65% oil 30% cake and 5%waste.
The filtered oil is then transferred to a clean oil storage tank and then to
multi head automatic volumetric liquid filling machine from where oil is filled in
bottles, sachets, tins, cans and jars.
4.1.1 Structure of production department
General Manager
Production Manager
Production manager Factory Manager
Supervisor
Supervisor
Plan Service Manager
Supervisor
Figure 4.1
4.1.2 Production process
PROCUREMENT OF COPRA FROM
THE FARMERS
PROCESSING OF COPRA
DRYING
STEAMING
COOKING
CRUSHING
FILTERING THE OIL
PACKING
SELLING
Figure 4.2
4.2 MARKETING DEPARTMENT
Marketing is indeed as ancient art, it has been practiced in pone form or the
other marketing concept means that an organization aims all its effort at satisfying its
customers at a profit.
The marketing concept is a simple, but a very important idea. It is not really
a new idea in business it has been around for a longtime. Marketing is defined as the
performance of business actively that direct the flow of goods and services from
producer to customer or user. KLF has it all an aggressive marketing strategy,
energetic sales team with an insight in to the future, tremendous confidence gained
from the past and reasonable ambitious for an unprecedented innings ahead. KLF oil
industries marketing department consists of 60 employees.
Apart from the meeting the market needs in Kerala, KLF has made it
presence felt in states like
Madhya Pradesh
Tamil Nadu
Andhra Pradesh
Karnataka
New Delhi
4.2.1 Structure of marketing department
General Manager
Marketing Manager
Advertising Manager Market Research Analyst
Sales Officer
Sales Representatives
Figure 4.3
4.2.2 Market distribution
Marketing department has made a contract with “Valappila” communication
situated in Thrissur for the purpose of advertising its products. This agency mainly
concentrates in the newspapers.
Various marketing strategies followed by the marketing departments are:
With a view to increase the sales, the colour of the bottle was changed from green to
blue. The colour change has created a positive response.
Large advertising campaign on television, radio, magazines and newspaper has been
organized.
The bottle has been made more attractive by providing an inner-cap and attached a
nozzle to pour oil conveniently. The bottle has been made leak proof. Retail sales
counter has been provided by the company to the distributer or retailers for the
purpose of advertising.
A lot of incentives are given to distributors and dealers. Distributors are given 4 to 5%
commission on their turn over. The dealers get 10% and the retailers get 15% on their
turnover by way of cash discount schemes.
At temperature climate, coconut oil becomes solid fat and it becomes difficult to pour
it out of the containers. This concern made the mouth of the bottle wide so that
consumers can easily take the oil out even if it has become in a solid state.
4.2.3 Promotional activities
KLF promotes it through suitable and appropriate media. The main consumers
for these products are middle class people. Advertisement activities of the KLF
Nirmal are done by the Ad agency called “Valappila” in Thrissur. In the year 2006,
KLF introduced new advertisement campaign. The brand ambassadors of the
company are Mrs. Anju Boby George, the sports celebrity, Mr. Innocent and Ms.
Meera jasmine, the cine celebrities.
4.2.4 Figure showing the Distribution channel of Marketing Department
MANUFACTURER
WHOLESALER
RETAILER
CONSUMER
Figure:4.4
In KLF, the manufactures sell the products to the wholesaler. The
wholesalers sell it to the retailers and ultimately it reaches hands of consumers. In the
year 2006, the company introduces a oil wending machine, 85 machine all over
Kerala. It helps the consumers to purchase the product at a less cost. Through this
machine company can sell the oil at a price packing cost. The whole process is
controlled by the marketing department.
4.2.5 Marketing research
Marketing research is done by the company’s sales force by
Redressal of consumer’s complaints.
Seeing the competition activity
With a view checking whether the channels in the distribution system are
functionally effective or not.
4.3 FINANCE DEPARTMENT
The main function of the finance department of the KLF oil industries is to
record the day to day transactions of the business. The chief of the department is the
finance manager.
Financial resources management at KLF oil industries includes collecting
information about the survey of resources. It acts as a supporting department for
providing relevant financial information to all departments. The P. K. Tampan
management of KLF oil industries plans and makes available the relevant information
and suggests control measures for financial resources to the related departments.
4.3.1 Figure showing Finance Department
FINANCIAL MANAGER
FINANCE OFFICER
FINANCIAL MANAGER FINANCIAL MANAGER
CASHIER ACCOUNTS OFFICER
WATCHMAN WACHMAN
Figure 4.5
4.3.1 Objective relating to finance functions
Selection of an optimum mix of different source of capital
Profit maximization and more importantly wealth maximization
To ensure control over expenses by constantly watching over expenditure and
income
Provide dividends to the partners or shareholders
To utilize funds in such a manner that a rupee is made to work at its optimum level
without endangering the financial solvency of the company through decisions such
as capital budgeting, profit planning, tax management and working capital
management
4.3.2 Objective relating to accounting functions
All assets and liabilities
Are recorded and classified properly in accordance with the statutory requirements
to reflect the financial position of the company as a particular date
To maintain the truth and fairness of financial statements, viz balance sheet and
profit and loss account
Receipts and payments of money are accurately recorded so that payable and
receivable are correctly reflected
All income and expenses of a particular period are accurately reflected in
accordance with relevant statistics to gauge the working results of that period
The company maintains adequate books of accounts there by compiling with the
procedure of sec 209 of the companies act 1956
KLF oil industries are fully computerized in accounting and inventory
management. Finance manager on 5th day of every month incorporating at the
provisions
4.3.3 Employee benefits
In KLF oil industries, there are two labour unions. The period of settlement is for
three years after which there will be renegotiations,
From the analysis made, the researcher realized that employees are fully satisfied
with their compensations provided by the company.
4.4 HUMAN RESOURCE DEPARTMENT
Human resource development programme are continuous and shaped to fit the
culture changes in the organizations in relation to the needs of the individuals.
4.4.1 Figure showing Human Resource Department
HUMAN RESOURCE MANAGER
OFFICE PLANT STAFF
EMPLOYEES
Figure 4.6
HRM manager is the head of the HR department. There are 100 persons working in
KLF oil industries, out of this 100, there are 70 workers and 30 office and plant staff.
Employees are given all facilities i.e. allowances, bonus etc, the retirement age of the
workers is 60 years.
4.4.1 Job analysis
Job analysis is the process of analysis the job to know the nature and
characteristics of people to be employed in different kinds of job. In KLF oil
industries, this analyzing is done by the personnel managers.
4.4.2 Recruitment and selection
Recruitment is a positive process of searching for the required qualified person
and stimulating them to apply for in the company. In KLF, the recruitment of
employees is based or request forward by each deoartment. The selection committee
comprises General Manager, Personal Manager and the manager of concerned
department along with the partners. On determining the requirement, a notification
will be issued to various media through advertisement inviting applications. The
mode of invitations would vary according to the post for which the applications are
invited. It is generally done through notice and local newspapers.
Selection is the process of choosing the most suitable persons form all the
applicants. Once all the applicants are received in the company; it would 15hen short
list the applicants. Its policy is calling only the minimum number of people for further
tests and interviews. Different tests are conducted for different jobs. These tests may
include physical tests which are conducted for workers of lower level. For office jobs
both written tests and physical tests have to be done. For a highly qualified job an
interview committee is formed consisting of all the department heads and a
professional interviewer.
4.4.3 Training and promotion
KLF oil industries on the job training to the employees . Staff are kept on
probation and training for six months. If their performance is founds unsatisfactory at
the end of six months. However if the candidates are found utterly incompetent their
service will be terminated at the end of the training and probation, the candidates will
be absorbed as regular employees of the company.
In this company, on the job training is the most effective method of training.
Under this method the new worker is placed on a regular job and training is given by
his immediate supervisor at the working place.
The company mainly follows coaching and study methods. The workers
learn from the instruction, observation and hand-on experience. Technology speaking
they are given vestibule training with the dimension of being given instructions.
Workers are first selected as ‘badlies’. Badlies mean substitute workers. If a badly
workers for a minimum of 240 days within a year, he would be made a permanent
worker. A fresh one would be preferred only for lower divisional works. After the
probation period, the manager under whom the employee is working gives an
appraisal report to the personnel manager. Confirmation of the job is given after the
based on the policy of the company; vacancies for the senior posts are filled from the
junior posts through a system of internal promotions.
4.4.4 Performance appraisal
Performance appraisal is done for each employee after assessing or analyzing
the following
The quality of the world
His behavior and trait
Relation with other employees
His efficiency and potentiality to complete the target in time
4.4.5 Working environment of the company
Employees are rotated on the basis of shifts the time of each shift is as follows:
First shift: 8.00 AM to 4.00 PM
Second shift: 4.00 PM to 12.00 AM
Third stage: 12.00 AM to 8.00 AM
General shift: 8.30 AM to 5.30 PM
The working time of office staff is 9.30 to 5.30. There is a lunch break from 1.00 pm to
1.30 pm
The company maintains fair working condition to protect the workers against
industrial accidents.
4.4.6 Holidays
Government has notified 7 national holidays and 6 festivals holidays. KLF oil
industry allows all of them.
4.4.7 Statutory benefits
The company provides the following statutory benefit to its employees.
4.4.8 Employee’s provident fund
Employer provides an amount equivalent to 8% of employees. Salary of EPF out
of which 6.35% goes to the provident fund and goes to pension fund that is retirement
benefit. An employee provides 8% of his salary to the provident fund.
4.4.9 Gratuity fund
According to central legislation, half a months salary for every years service after
the completion of 5 years of service should be paid as gratuity on retirement.
4.4.10 Payment of bonus
Company provides a bonus of up to 15% maximum then there is a profit, and
6.35% incase of loss.
4.4.11 Table showing the Leave benefits
For non ESI employee one day sick leave is allowed.
CATEGORY CASUAL LEAVE PRIVILEGE/EARNED
For daily rated workers 7 days One day leave for 15 days
of work
For other employees 9 days 30 days per annum
Table 4.1
4.5 PURCHASE DEPARTMENT
purchasing department exists IN KLF Nirmal oil industry mainly adopt direct
purchasing. The essential raw materials of the company are coconut (copra) and
sesame. Copra is mainly purchased from the copra farmers and processors of place
like Thrissur, Malappuram, Kozhikode, under special working bond developed by the
company. Gingelly is mainly purchased from Tamil Nadu. The procurement of the
bottles, tins, cans etc….. are manufactured at the unit located in Thrissur and Aluva.
The quality of coconut oil is directly related to the quality of copra. To ensure this
KLF has established a network of purchasing centers in Kerala for directly purchasing
graded copra from the copra processors and farmers. All these centers are equipped
with the infrastructure like copra drying yarn, mechanical dryers, and storage go
down etc. Required for processing the copra at the point of purchase itself without
any delay. This is very important because copra and deteriorate in quality very soon
and fungus will form on it, if not processes and fully dried immediately after
purchase. In this process, KLF has not only developed a special bond with copra
processors/ farmers but also taught them to process the copra according to their
standards. They are also assured of regular supply of quality copra at each prevailing
market rate. All the raw materials are seasonal and therefore are subject to frequent
fluctuations in prices. Therefore raw materials are procured on the basis of SPOT
purchase system.
4.5.1 Advantages and disadvantages of spot purchase
Advantages
It helps to fix a price lower than that of competitive rates.
The supply of copra in the right time of production is possible due to SPOT
purchasing.
It helps to get quality products from the suppliers.
Disadvantages
It is very difficult in the time of audit and preparation of accounts.
No security in the case of non supply of products.
Human factor very crucial in the case of supply.
.
4.6 FILLING AND PACKING DEPARTMENT
In the production of cococnut oil, filling and packing department plays an
important role. KLF Nirmal industries has unique purchasing, processing and
manufacturing systems is its ultra modern packing and filling machines, installed in a
specially designed hygienic environment, these machines ensure zero contamination
for the entire product range. This department contains ten staff and forty workers for
efficient and attractive packing and filling of coconut oil. KLF Nirmal oil industries
have semi automatic and fully automatic machines for the process of filling oil in to
different packets to attract the customers. They use 1,2,4 headed machines for this
process. This department helps the company to increase the sales by means of
providing the same products in different quantity at different packs for different price.
It is very helpful to get oil at desired quality and price to the customers.
The bottle has made more attractive by providing an inner cap and attached nozzle
to pour oil conveniently. The bottle has also been leak proof. At the temperature,
climate, coconut oil becomes solid fat and it becomes difficult to pour it out of the
containers. The concerned made mouth of the bottle wide so that consumers can
easily take the oil out even if it has become in a solid state. Nirmal products are
available in convenient consumers packs of various capacities. Hitech packing
machines ensure leak proof, tamperproof packing that helps retain the aroma of the
products and increase their shelf life. Coconut oil is available in 6 different packs in
tins, bottles, pouches, pet bottles. They are as follows:-
Coconut oil exports packs
This is mainly provided in quantities like 200ml, 500ml, 1liter and 2 liters export
packs are provided using bottles and tins, helps to protect the product from pollutions.
Coconut oil exports packs
This is mainly provided in quantities like 200ml, 500ml, 1liter and 2 liters exports packs
are provided using bottles and tins, helps to protect the product from pollutions.
Blue packs
Blue packs are available to customers at 50ml, 100ml,200ml and 500ml packs with
attractive blue colors.
Yellow packs
Yellow packs are available to customers at 50ml, 100ml, 200ml,500ml, and 1liter packs
with attractive blue colors.
Pet bottles
Pet bottles are available to customers at 50ml, 100ml,200ml,500ml,and 1 liter packs. Pet
bottles have highest demand because the oil can be seen to the customers because of
transparency of bottles
Pouch packs
Pouches are very attractive and are available to customers at 50ml,
100ml,200ml,500ml,and 1 liter packs. It is more economical than the bottles. Because
the price of the container also included in that packs.
This type of filling and packing helps to attract more customers to use the product. Filling
and packing department helps the company to attract the customers and to change the
technology in future by means of research and developments. This department helps
the company to enhance the sales of their products.
4.7 SALES AND DESPATCHING DEPARTMENT
KLF Nirmal oil industries sales and dispatching consist of 10 employees under
manager. This is concerned with all activities which are involved in the process of
transforming goods from the point of production to the point of consumption.
4.7.1 Functions of sales and dispatching department
Market research
Selling
Transportation
Advertising and sales promotion
Dispatching
4.7.2 Marketing strategies
Sales department has made a contract with ‘Valappila communications’ Thrissur
for the purpose of advertising its products. This agency mainly concentrates on the
advertising in newspapers.
Various marketing strategies followed by the sales department are:-
For attracting more customers the color of bottle has changed from green to blue.
This color change creates a positive response.
A large advertising campaign on television, radio, magazines and newspapers has
been organized.
The bottle has made more attractive by providing an inner cap and an attached nozzle
to pour oil conveniently. The bottle has also been made a leak proof.
‘Retail sales counter’ has been provided by the company to the distributors for the
purpose of advertising.
Lot of incentives is given to distributors and dealers.
Distributors are given 4% to 5% commission on their turnover.
The dealers get 10% and retailers get 15% on their turnover by way of cash discounts
schemes.
4.7.3 Sales promotion
KLF Nirmal oil industries have conducted various activities for the promotion of
their sales. The various steps used by the company are:
Organizing healthy hair competition in the women’s organization in the different parts
of the state of Karnataka.
Using different advertising channels like television, newspapers , radio & fashion &
filmy magazines to developing the sales. This process is done by valapila
communications Thrissur.
Participated in different exhibition and trade fairs.
Providing free consumer items like comb teaspoons etc along with cosumer packs
cans and tins.
The company has two brand ambassadors i.e. film star Mr. Innocent, actress Ms.
Meera Jasmine and sports star Mrs. Anju Bobby George.
In KLF the manufacturer sells the products (oils) to the wholesalers the wholesaler
sells it to the retailers and ultimately it reaches the hands of consumers. The whole
process is controlled by sales department.
4.7.4 Market distribution
The KLF a leading manufacturer of coconut oil has more than 30 dealers
throughout Kerala. There are sub dealers and co- operative societies who are always
in touch with the customer’s. To become a dealer one should the amount of Rs.
10000/-as a principal on which yearly interest of 5% is paid. Before giving
dealership, company makes sure that the dealers agency is 5kms away from other
KLF agencies. Market studio with the help of sales representatives are regularly
undertaken.
4.7.5 Figure showing the Distribution channels of Sales and Dispatching
Department
MANUFACTURER
STOKIST
WHOLESALER
CONSUMER
RETAILERS
Figure 4.7
4.7.6 Dispatching
The dispatching function involves the actual granting of permission proceed
according to plans already laid down. The issuing or moving of material from stores
to first production process or from process to process. Dispatching of oil is done in
KLF by managers after checking the products.
There is a department to check the quality of products after production. If they
approve the product after checking the quality the manager give orders to fill the
products in to different packets. The main orders about the production of oil are made
by directors in common meetings. This function is very important because quality of
normal products that has made the brand a house hold name in edible oils.
4.8 ACCOUNTS AND ADMINISTRATION DEPARTMENT
The main function of accounts and administrative department of KLF oil is to
record the day to day transaction of the business. The chief of the department is
finance manager. Financial resource management at KLF oil includes collecting
information about the survey of financial resources. It acts as supporting department
for providing relevant financial information to all departments. The management of
the company plans and makes available the relevant information and suggests control
measures for financial resources to the related departments.
4.8.1 Function
The main functions of accounts and administration department can be broadly
classified as:
Accounting functions
This function involves recording of day to day accounts of several transactions viz:
receipts and disbursement of money transactions relating to purchase of inventories,
production, sales, wages, salaries and other expenses such as manufacturing,
administration, selling and distribution.
Objectives
All assets and liabilities are recorded and classified properly in accordance with the
statutory requirements to reflect the financial position of the company as at a
particular date.
To maintain the truth and fairness of financial statements, balance sheet and profit &
loss account
Receipts and payments of money are accurately recorded so that all payable and
receivables are correctly reflected.
All incomes and expenses of a particular period are accurately reflected in accordance
with relevant statistics to gauge the working results of that period.
Administrating function
It involves procurement of funds and effective utilization of the same in the
business. Comparing actual expenses with that of budgeted figures ensures control
over expenses. By constantly monitoring various operational activities, cost control
and reduction are facilitated.
Objectives
Selection of an optimum mix of different resources of capital profit maximization and
more importantly wealth maximization.
To ensure control over expenses by constantly watching over expenditure and income.
To provide dividends to the partners or shareholders.
To utilize funds in such a manner that a rupee is made to work at its optimum level
without endangering the financial solvency of the company through decisions such as
capital budgeting, profit planning tax management and working capital management.
The company maintains adequate books of accounts thereby complying with the
procedure of sec.209 of the companies Act 1956. KLF oil industries is fully
computerized in accounting and inventory management. Finance manager submits the
financial reports to the General manager on the 5th working day of day month
incorporating all the provisions.
Following are the books of accounts maintained by the company
General leader
Cash book
Day book
Sales register
Purchase register
Journal register
Finished goods register
Raw materials
Credit note register
Voucher
4.8.2 Budgeting
The capital budgeting is done after scrutinizing the actual requirement of the unit,
which is discussed in a committee. Generally, budgeting is done for every
departmental requirement. This may be accepted partially or may be rejected as a
whole. The annual budget of the company is around 75 lacks. Annual budget for
promotion of the products is 60 lack.
CHAPTER -5
SWOT ANALYSIS
5.1 STRENGTH
The products of KLF Nirmal oil industries have brand image in Indian and Foreign
markets
VISIC technology adopted by the company helps to get maximum oil from the
coconut
Vending machine introduced for exact measure and quality is unique among other
companies.
A quality product helps to increase the exporting of products.
Financially, the company is very strong due to good promotional techniques.
Fair distribution channels helps to increase channels.
Line and staff organization structure is very helpful to maintain good relation with
employees.
Good marketing channels helps to market their products.
Exporting of products is increased due to quality products.
A good welfare facility to employees helps to increase the performance of employees.
5.2 WEAKNESS
Due to limited plant the working place of employees is difficult.
High transportation cost of raw materials and finished products increase the cost of
production.
Presence of trade union may cause strikes and lockouts.
No availability of raw materials.
5.3 OPPURTUNITIES
Wide spread market in other states helps to increase sales.
Exporting of oil to other countries helps to raise revenue.
New technology imported to reduce wastage of raw materials and helps to reduce cost
of production.
Adopting new promotional strategies may help to increase market share of the
products.
Manufacturing cholesterol free oil helps to attract to customers and increase the
consumption of oil.
5.4 THREATS
New rules and regulations of Government may lead to more complications in
production
Competitive market is another threat to survive in the market.
Entry of foreign companies affects the company by a reduction in market share of the
products.
Strikes in the company by union members, may cause stoppage of production.
Depletion of coconut trees due to various diseases may lead to non availability of
coconuts.
CHAPTER -6
SUGGESTIONS AND CONCLUSION
6.1 SUGGESTIONS
Improve the facility of the plan.
Adopt measures to reduce transportation cost.
Try to reduce disease that affect coconut trees by using eco – friendly pesticides
and fertilizers.
Make friendly relationship with union members.
Adopt innovative techniques in order to survive competitive market.
6.2 CONCLUSION
The analysis of the organization structure and department of KLF oil
industries was the main objective of the study. From this survey, the researcher
should understand that most of the consumers of KLF Nirmal are fully satisfied. The
quality, taste and smell of the products are up to the expectations of the consumers.
The quality of the product also satisfies the need of the oil in foreign countries, it help
to increase exporters. Not only the consumers but also the workers are fully satisfied
with their salary, wages and the working conditions providing in the company. The
efficiency and effectiveness of the department helps to achieve their organizational
goal effectively.
CHAPTER -7
BIBLIOGRAPHY
7.1 BIBLIOGRAPHY
