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INTRODUCTION Cashew has a long history as a useful plant but only in the present century, it has become an important commercial tree nut. Portuguese explorers brought the cashew tree to India in 1558. It is cultivated for food and medicine value, since the last 400 years &during world war second, it become highly priced as valuable oil drawn from the cashew shell. Cashew nuts are regarded as a luxury food and quality is the prime determinant of price cottage industries. Cashew processing is an excellence alternative to large scale, capital intensive. This study makes an attempt to know over all production process and marketing activities of Cashew Kernels and Cashew Nut Shell Liquid (CNSL). OBJECTIVES OF THE STUDY To know need and importance of cashew kernels as well as CNSL. To understand processes required for the production of kernels and CNSL. 1

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Page 1: Project Report

INTRODUCTION

Cashew has a long history as a useful plant but only in the present

century, it has become an important commercial tree nut. Portuguese

explorers brought the cashew tree to India in 1558. It is cultivated for

food and medicine value, since the last 400 years &during world war

second, it become highly priced as valuable oil drawn from the cashew

shell.

Cashew nuts are regarded as a luxury food and quality is the

prime determinant of price cottage industries. Cashew processing is an

excellence alternative to large scale, capital intensive. This study makes

an attempt to know over all production process and marketing activities

of Cashew Kernels and Cashew Nut Shell Liquid (CNSL).

OBJECTIVES OF THE STUDY

To know need and importance of cashew kernels as well as CNSL.

To understand processes required for the production of kernels and

CNSL.

To know the adopted machines, equipments and tools used for

processing and production.

To know the number of functional departments working in the

factory.

To know major trading centre of cashew in India.

SCOPE OF THE STUDY

The scope of the study is limited to KVS&SONS Cashew Factory

Mangalore. This study done was, mainly on production and marketing

activities of cashew. And the information relating to the topic has been

collected from production unit.

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METHODOLOGY

The study has been conducted at Mangalore. This project is based

on primary data by personal consultation with the manager, supervision

and staff members at KVS.

The project is also relied on secondary data such as books, internet,

and other reports of the business firm; hence information is collected

from the factory under study by personally visiting.

RESEARCH INSTRUMENTS: The main research instruments

were;

QUESTIONNAIRS: The information was collected with the help of

questionnaires.

DIRECT PERSONAL CONTACTS: Personal contacts with the

source persons were the main source of information for analysis purpose.

LIMITATIONS OF THE STUDY

Non availability of some information is the major limitation, which

made the study difficult in completion of the report.

It is expensive to complete the study.

Generalization was not possible.

Due to less time it was not possible to get more information.

It is assumed that the respondent’s informant is accurate.

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INTRODUCTION

Cashew (Anacardium Occidentale L.) belongs to the family

Anacardiaceous. The Portuguese took this plant to the old world and

planted it European countries. This was the time cashew started to

become famous in the world. Portuguese were the one who introduced

this crop into India mainly in Goa five centuries ago for wine and brandy

production. It was also planted as it helped in binding the soil. The

commercial importance of cashew nuts was not known at that time. The

climate in here was well suited to the plant and it prospered in the other

parts of the country too. Trading in cashews started as late as in 1920s.

Cashew trees, which may live for Thirty to Forty years. Start

bearing frit in the third or fourth year. They grow in warm regions, with

an annual rainfall of 1000 to 3000mm, mainly in Central and South

America, Asia and Africa. Native from Brazil, the cashew tree were

planted in India in the 16th century to prevent soil erosion. Easily

cultivated, they require little care and produce an annual average of 50 to

75 Kg of apples and nuts per tree, yielding approximately 3 Kg of cashew

kernels.

The cashew tree produces fruit and a by-product; the nutshell oil.

The fruit consist of two parts: a pear-shaped stalk called the cashew

“APPLE” which is an edible food rich in vitamin “C”. And it also mixed

in fruit salads and a drink is prepared from the juice. Another part is that

grayish-brown kidney-shaped nut (HS 0801.31), which is attached to the

lower end of the apple and contains a slightly curved white kernel (HS

0801.32), wrapped in a thin brown skin or testa, sizes of which are

measured in counts of between 180-240. The nutshell, which is smooth

and oily, contains a toxic, resinous material from which is obtained the

CNSL (Cashew Nut Shell Liquid).

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ABOUT THE CROP-CASHEW

FACTORS

1. Climate

Cashew is essentially a tropical crop, grows best in the

warm, moist and typically tropical climate. The distribution of

cashew is restricted to altitudes below 700 m, where the

temperature does not fall below 200C for prolonged periods,

although it may be found growing at elevation up to 1200m.It is

best adapted to the coastal regions. The cashew is hardy Sand

drought resistant, but it is damaged by frost.

2. Rainfall

Cashew is grown in areas with rainfall ranging from 600-

4500mm per annum. Fruit setting in cashew will be good if rains

are not abundant during flowering and nuts mature in a dry period.

3. Temperature

Cashew is sun-loving tree and does not tolerate shade. It can

tolerate temperature of more than 360C for a shorter period but the

most favourable temperature lies between 24C to 28C.

The climate factors influence the cashew growth and

production as follows:

Dry spell during flowering and fruit setting ensures better

harvest.

Cloudy weather during flowering enhances scorching of

flowers due to tea mosquito infestation.

Heavy rains during flowering and fruit set damages production.

High temperature (39-420C) during stage of fruit set

development causes fruit drop.

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4. Soil

Cashew can be grown on a wide range of soils except heavy

clay, water logged and saline soils. Well-drained red, sandy laterite

soils are ideal for good growth and yield of cashew.

5. Varieties

Selection of suitable cashew varieties for the specific region

and appropriate package of practices determines the final yield.

More than 30 varieties, which are having exportable grade of

cashew kernels, are released from different research institutes in

India and details are furnished separately.

6. Planting Material

Selection of planting material is most important in cashew

cultivation. Softwood grafting is only method which is

commercially feasible and practically high successful in cashew.

7. Spacing

The normal recommended spacing is 7.5*7.5m to 8*8m and

spacing may be reduced up to 4m*4mdepends on type of soil

managerial capacity.

Method and Season of planting

The square system of planting can be followed. The ideal

time for planting is usually during monsoon season when the

moisture is air surcharged (June-August) both in the west and east

coast. If irrigation facilities available, planting can be done

throughout the year except winter months.

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8. Weeding

Clearing the area by manually with in 2mtr radius of the

trunk and slashing the remainder is essential until the trees shade

out most of the trees. Weeding can be done by chemically also.

9. Training and Pruning

It is the important horticulture practice to be employed to

make better frame work of cashew plant. It helps to control growth

and make easy for cultural practices. As an orchard management

technique to improve the sanitation, removal of water shoots,

lower branches, crisscross branches and dry branches are found to

be beneficial to enhance flowering and the yield.

10.Irrigation

In India cashew is grown mainly under rain fed condition.

However protective irrigation especially summer months during

January-March at fortnightly intervals at 200 liters/plant improve

fruit set, fruit retention thereby increasing nut yield.

11.Inter cropping

Intercropping received little attention in the cashew.

Depending on soil &climatic condition and local situation annual

vegetables like tapioca, pulses, turmeric ginger etc, can be grown

as inter crops.

12.Plant Protection

Tea mosquito, stem borer, thrips, leaf minor and leaf

blossom Webber are important pests of cashew. These cause

economical damage in cashew. To control the pest, spry schedule

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involving 3 sprays synchronizing new flushing, flowering and fruit

setting may be given with the following chemicals:

Quinalphos (25% EC) -0.05%

Carbaryl (50% WP)-0.01%

Phosphamidon (85% WSC)-0.03%

13.Harvesting and Yield

Economic bearing in cashew commences after 3rd year of

planting. The ripened will fall down and nuts from fallen fruits

have to be collected. Nuts can be dried in sun for 2 to 3 days on

cement floor and can be stored in gunny bags. The yield starting

from 1Kg in 3rd -4th year, yield goes on increasing as the canopy

develops and one can expect more that 10Kgs,of nuts in 8 to 10

years old plant depending on management.

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World Cashew Production

Cashew is produced in almost 32 countries of the world and now it

has become the number one crop in world taking over almonds.

According to estimates from the World Bank, around 97% of world

cashew production comes from wild growth and small farms while the

remaining 3% come from planned plantation. According to updated 2002

data received from the Food & Agriculture Organization (FAO),

Vietnam became the highest volume producer in 2002 with 5,16,000 MT,

followed by India with production of 4,60,000 MT. India, which had

been the world's largest producer up to 2001 with an average yearly

production of 4, 50,000 MT, followed by Nigeria, with 1, 76,500 MT,

and Brazil 1,29,000 MT.

In Ghana, there is an ongoing Government-supported investment

project in cashew production under Ministry of Food and Agriculture

through the cashew development project. This is to boost production and

processing of cashew nuts for the local market and also as a means of

poverty reduction.

Under this project, the Government is providing funds for the

purchase of improved seedlings for selected former co- operatives in 10

Districts located in 5 Regions namely Northern, Upper west, Brong

Ahafo, Volta & Greater Accra. The total area in the world under cashew

cultivation figures up to 35.1 lakh hectares. And the world production

figures of this crop hover around 22.5 lakh tons per year. And the major

raw-cashew producing countries are; Vietnam, India, Brazil, Nigeria,

Indonesia, Tanzania, Cote de Ivoire, Guinea, Mozambique, Benin,

Thailand, Malaysia, Kenya, Ghana. And the major cashew consuming

countries in the world leaded by United States of America are;

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United States Of America

European Union

India

Cashew Production In India

India has always been a major player in the production of cashew.

The Indian production of cashews contributes to around 4.6 lakh tons per

annum. It is the second largest producer of raw-cashew in the world but

conquers the 1st place among the largest producing countries of cashew

kernels and also in the maximum area covered that figures to the 7.70

lakh hectares currently. The country provides with around 55% supply of

cashew kernels in the world. The major states in India in which cashew

are cultivated are;

Kerala

Karnataka

Goa

Maharashtra

Andrapradesh

Tamilnadu

Orissa

West Bengal

Maharashtra stands 1st among the main cashew producing states in

India followed by Andrapradesh & Orissa. The country also is the 3rd

largest consumer of the food product in the world after United States of

America & European Union as it consumes over 3 million cartons per

annum

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Major trading centers of cashew

The major trading centers of cashew in India are;

Palasa

Kollam

Mangalore

Quilon

Kochi

INDIA’S TRADE RELATION WITH OTHER COUNTRIES

The climate in the country suited the crop so well that it

spread along in all the direction of the continent. India became the

leader in the cashew production till in 2002, its dominating position

was taken over by Vietnam. The country is still the second largest

country producing raw-cashew nuts. It is also is the largest country

producing cashew kernels, the largest country indulging in the

processing of this food product and the largest exporter of cashews in

the world.

India imports small quantities raw cashew nuts from the

African countries so as to meet the international demand for Indian

processed cashew kernels. Cashew industry is directly connected to

the growth of the economy as India earns a good amount of foreign

exchange by exporting cashews. Cashew ranks second among the

horticultural commodities exported from India. This industry also

gives employment to around 3 lakh people in the country and the

demand for Indian cashews is quite large due to qualitative edge over

other countries. India earns more than 200 million $ a year by

exporting 40 to 50 thousand tons of cashew kernels and the countries

trade links are spread over 40 countries.

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The major countries that import Indian cashew are;

United States Of America

Netherlands

United Kingdom

United Arab Emirates

Japan

France

Saudi Arabia

Spain

Russia

Germany

Canada

Greece

PRODUCTION DISCRIPTION

The Indian market for cashew nut classified under the code below;

HS080131 Cashew nuts (Fresh or dried, in Shell).

Product name

German Cashewnüsse (Kaschunüsse), Cashewkerne

English Cashew nuts, cashew kernels

French Noix de cajou, Noix d'arabie

Spanish Anacardos

Scientific Anacardium occidentale

CN/HS number 0801 30 ff.

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Cashew nuts are the stone fruits of the cashew tree, which grows to

a height of up to 12 meter and belongs to the sumach family

(Anacardiaceae).

Cashew nuts are shell fruit (nut types). Because of their similar

characteristics with regard to transport, particularly their high oil content,

their requirements regarding care during storage and transport are the

same as those of oil-bearing seeds/fruits.

Cashew nuts are classed as follows:

1. Cashew apple

The cashew apple, at up to 9 cm in length, is the pear-

`shaped, swollen, soft, shiny yellow or red, fleshy stem of the

cashew nut proper. The cashew apple itself is not suitable for

transport and storage.

2. The cashew nut

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The cashew nut is a stone fruit, which grows out of the

bottom of the cashew apple, is approx. 2 - 2.5 cm long, kidney-

shaped, yellowish-reddish in color and has a hard shell with a

single kernel with a delicate aroma. It is removed from the cashew

apple after harvesting and sun- or hots air-dried, the shell then

becoming detached to reveal the kernel proper.

3. The cashew kernel

This is surrounded by a fine, brown seed coat, which

contains antioxidants which protect the kernel from penetration by

atmospheric oxygen so preventing it from becoming rancid

(oxidative rancidity). Cashew nuts are also known as Anacardium

nuts.

Countries of origin

This Table shows only a selection of the most important countries of

origin and should not be thought of as exhaustive.

Africa Mozambique, Tanzania, Kenya, Egypt

Asia India, China

America Mexico, West Indies

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Active behavior

The high oil content of the goods frequently causes dark fat stains

to appear on the bags, which must therefore be kept from coming into

contact with goods sensitive to contamination, such as baled goods, tea

chests, marble etc.

Cashew nuts in bags must not be stowed together with fibers or

fibrous materials, either, since oil-impregnated fibers accelerate self-

heating processes.

Passive behavior

Cashew nuts are sensitive to dust, dirt, fats and oils. The holds or

containers must accordingly be clean and in a thoroughly hygienic

condition before loading.

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OVERVIEW OF CASHEW FACTORYK. Vishwanath Subraya Kamath founded KVS Kamath &Sons in

the year 1980. Apart from the Mangalore factory, another factory has

been subsequently set up in Munchoor with the name ‘Vignesh Industry’.

Vishwanath Kamath father’s Subraya Kamath was the pioneer in the

cashew processing. Mangalore factory is managed by Jairam Kamath,

who is the youngest son. The overall process at KVS is divided into 3

sections; Cutting, Peeling, and Grading. 100 workers are working in

cutting section, 90 workers are doing peeling work. And there 30

members are doing grading of kernels. All they are given piece rate

wages. 5 supervisors, an accountant, computer operator are working

inside of the KVS.

OBJECTIVES OF KVS CASHEW FACTORY

To extract the healthy, tasty kernels from the raw nuts in the

shell.

To produce shell oil that is CNSL.

To provide employment opportunities.

To utilize best technologies.

Attainment of the target.

Mission

Process the raw nuts to most efficient way.

Add value to the product to reach the retail consumer.

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Initial Capita

The KVS&SONS cashew factory established in the year 1980 and

the business commenced for Rs-1, 00,000. During the year 1987 and

1993 factory was in loss to their production, now they make profit.

Location &site

KVS&SONS cashew factory was situated at Shakthi Nagar,

Kulashekhara Road, Mangalore.

Product produce

The main product of KVS&SONS factory is the cashew kernels

and by-product obtained are cashew shell liquid and shell cake.

Means of finance

The Factory has been partly financed by Axis Bank and Syndicate

Bank.

Wage System

The factory follows both the piece wage and time wage system. In

the cutting and peeling section piece wage system and in other section

time wage system is adopted.

Working Hours

Factory starts work at 8-30 am & up to 5-30pm. Sunday is a

holiday. Wage paid to workers weekly that is Saturday.

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Labour Welfare Measure

Dearness Allowance-15.30%

Provident Fund ;

Employers-12%

Employees-12%

ESI:

Employer-4.57%

Employees-1.75%

Capital Inputs

Land and building

The built up area requirement is around 100 sq.mtrs. And to

limit the expenditure and save time, it is advisable to buy a suitable

readymade shed which would cost around Rs.2.50lakh.

Machinery

It is advisable to install rated processing capacity of 75 tons

per shift considering working of around 200-220 days every year.

This would require following equipments.

Miscellaneous Assets

Some other assets like furniture and fixtures, storage racks,

working tables etc. shall be required for which a provision of Rs.40,

000/-is adequate.

Utilities

Total power requirement shall be 30HP Where as water shall

be required for potable and sanitation purposes.

Item Qty Price(Rs.)

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Oil expeller complete with all accessories, electric

motor& other electrical.

1 2,00,000

Filter press with plunger pump, electric motor

accessories

1 50,000

MS Storage Tanks 2 20,000

Weighing scales, Laboratory equipments etc … 30,000

Total 3,00,000

ORGANISATION STRUCTURE

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MANAGING DIRECTOR

MANAGER

CUTTING DEPARTMENT

SUPERVISOR

FINANCE DEPARTMENT

PEELING DEPARTMENT

GRADING DEPARTMENT

Cutter

SUPERVISOR SUPERVISOR ACCOUNTANT

Cutter Grader Grader Peeler Peeler

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INTRODUCTION

Among all functional areas of management, production is

considered to be critical in any industrial organization. Production is the

process by which raw-materials and other inputs are converted into

finished products and output. So production includes creation of both

tangible goods as well as intangible services. The application of

management principles to the production process or functions in a factory

is called the production management. And the factory is a place where

the factors of production such as land, Labour, money& enterprise are

grouped together for the creation of goods and services.

PRODUCTION IN KVS FACTORY

The main products of KVS&SONS factory is the cashew kernels

and by-product shell oil.

The cashew nuts can be consumed as roasted and salted, or used an

ingredient in confectionery and bakery products such as sweets, ice

creams, cakes, and chocolates.

The raw-cashew nut shell contains around 20% oil. When cashew

nuts are processed by oil extraction process, about 50% oil is extracted.

Balance oil or liquid is known as CNSL.

RAW-MATERIAL

The only raw-material used for the production is the raw cashew

nuts from the local & foreign markets. Purchasing period is from

February to March in local markets. It also collects raw nuts by

importing from Indonesia, Benin, Ivoire.

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MACHINES NEEDED FOR PROCESSING

The important machines needed for cashew processing are;

Bruioir Roaster:

Fitted with an electrical heater, it also has a space for a kerosene burner.

The rotary drum with cross blades gives uniformity and a quick discharge

of materials into the cooling tray. The automatic stirrer moves and

discharges the roasted material to the final storage tank. The colour

changes can be seen through a viewfinder. Requires between 0.5 and 1.5

HP. Depending on the model.

Sheller

A small tool for bench use with a specially shaped blade set. The

complete nut is placed on the lower blade and when the spring- loaded

handle is depressed, the upper blade is pushed down into the shell. The

handle can then be pushed sideways to exert a twisting motion on the

shell and thus open it.

Dryers

Drier is essential to avoid under drying or scorching. The shelled kernels

are dryed properly with the help of dryers, before the peeling process.

Peeler

The machine used for peel the testa which is attached to the kernels.

Trolley

Usually materials are handled by man itself. In certain sections

trolleys are used for moving the materials.

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CASHEW NUT PROCESSING

The objective of cashew processing is to extract the healthy, tasty

kernel from the raw nuts in the shell. Most modern factories are

designed to obtain the maximum number of whole nuts and as much

shell oil as possible.

The cashew fruit is unusual in comparison with other tree

nuts since it is outside the fruit. The cashew apple is an edible fruit,

attached to the externally born nut by a stem. In Brazil, the apple is

used to manufacture jams, and soft and alcoholic drinks. In Goa it is

used to distil cashew liquor called “feni”. In its raw state, the shell of

the nut is leathery, not brittle. It contains the thick vesicant oil, CNSL,

with in a sponge-like interior. A thin testa skin surrounds the kernel

and keeps it separated from the inside of the shell. The primary

products of cashew nuts are the kernels which have value as

confectionery nuts. Cashew nut shell liquid (CNSL) is an important

industrial raw material for resin manufacture and the shells can be

burned to provide heat for the decorticating operation.

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Traditionally, extraction of the kernel from the shell of the cashew

nut has been a manual operation. The nut is roasted which makes the

shell brittle and loosens the kernel from the inside of the shell. By

soaking the nuts in water, the moisture content of the kernel is raised,

reducing the risk of it being scorched during roasting and making it more

flexible so it is less likely to crack. The CNSL is released when the nuts

are roasted. Its value makes collection in sufficient quantities

economically advantages. However, for very small-scale processors, this

stage unlikely to take place due to the high cost of the special roasting

equipment required for the CNSL collection .If the nuts are being

manually shelled, gloves need to be used or alternatively, the nuts should

be tumbled in sawdust or ashes to absorb the liquid coating which has a

harmful affect on the skin.

The shell can be cracked either manually, using a hammer, or

mechanically. Manually operated blade openers are relatively

inexpensive; however the more successful mechanical methods

depend on the nuts having passed through the ‘Hot oil’ CNSL

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extraction operation. Care must be taken not to break or split the

kernel at this or subsequent stages as whole kernels are more valuable

than broken ones. Once the kernel is removed from the shell, it is

dried, the testa is peeled off and the kernel is graded. Thus the cashew

nut processing can be sub divided into a series of steps.

1.Cleaning

All raw nuts carry foreign matter, consisting of sand, stones,

dried apple etc. The presence of foreign matter in the roasting

operation can be avoided by cleaning the nuts. The raw nuts can be

sieved by hand using 3/4inch mesh sieve.

2. Soaking

The next stage is to soak the nuts in water to avoid scorching

them during the roasting operation. This can be done by placing the

nuts in a 40-45 gallon drum or vat and filling it with water until all the

nuts are covered. After being left to stand for about ten minutes, the

water should be drained off via a plug near the base of the drum. The

nuts should then be left for periods of not less than four hours in order

to allow the water left on the surface of the nuts to be absorbed. The

process of covering the nuts with water, draining and standing should

be repeated with the same nuts about three times until a moisture

content of 9% is reached.

Where the production output runs from 2-10 tones of nuts per

day, a simple cleaning and conditioning arrangement can be used.

Two people open the sacks of harvested nuts on stand and clean the

raw nuts as they are moved along a flat sieve, to two vats which are

used for storage until the soaking process begins. Two vats are useful

because one can be emptied while the other is being filled.

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3. Roasting

The simplest roasting method is to heat the nuts for about a

minute in an open pan with holes. Acid fumes are released and if the

nuts should catch fire the flames can be doused with water. A more

efficient method is to use a slanting perforated cylinder that is rotated

above a fire. The shell oil flows through the holes in the cylinder and

is collected in a catch through. After the roasting process the nuts are

dumped into ash or sawdust to remove the excess shell oil still

clinging to the shells.

The application of heat to the nut releases the nut shell liquid

and makes the shell brittle which facilitates the extraction of the

kernel when breaking the shell open. Three methods of roasting exist:

open pan, drum roasting and the ‘Hot oil’ method. The latter is more

suitable to medium-scale operations with associated higher equipment

costs and viability of CNSL collection.

Open pan:

An open, mild steel, circular dished pan of around 2 feet in

diameter is supported on a basic earth fireplace. When heated, 2-3lbs

(1 Kg)of nuts are placed on the pan at one time and stirred constantly.

The CNSL starts to exude and then ignites. This produces a long

flame and black smoke. After approximately two minutes, the pan is

dowsed and the charred, swollen and brittle nuts are thrown out of the

pan. The moisture evaporates quickly leaving the nuts ready for

shelling.

Drum Roasting:

The idea of continually feeding the nuts into a rotating drum over a

fire developed from the pan method. A slight horizontal slope in the

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mounting ensures movement of the nuts through the drum. The drum is

pierced so that the flames touch the nuts and the smoke is controlled by

a hood and chimney arrangement. The nuts are dowsed using a

continuous spray. This process was further modified by using the heat

from the burning CNSL being harnessed to roast the nuts some more.

The roaster consists of a contained helical screw which moves the

burning nuts at a controlled rate. The design was a distinct

improvement, with little fuel being consumed and there being greater

control on the roasting time.

‘Hot Oil’ Method:

The principle employed in this method is that oil-bearing

substances i.e., the shells, when immersed in the same oil at high

temperature, will lose their oil, thus increasing the volume of the

oil in the tank. For this method, conditioning becomes important.

The equipment consists of a tank of CNSL heated to a temperature

of 185-190˙C by a furnace underneath and a wire basket used to

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hold the nuts for immersion into the tank. The depth of basket must

be sufficient so that the rim remains well above the oil during the

roasting. Immersion time can range from 1 ½ to 4 minutes. About

50% of the liquid is extracted from the nuts. Draining trays are

needed at the end of the tank for the roasted nut

4. Shelling

The objective of shelling is to produce clean, whole kernels free

of cracks. In India, this operation has been done manually. Other

countries have difficulty in competing with the great skill and the low

wages of the Indian

This is the most difficult operation in cashew processing. In India

shelling is mostly done by cheap female labour. Shelling is carried out

by using special wooden mallets and pieces of bent wire, at a rate of

about 200 nuts per hour.

Manual Shelling Method

In the manual shelling process, the nuts are placed on a flat

stone and cracked with a wooden mallet. As mentioned above,

because of the residue CNSL, wood ashes for covering the shells or

gloves are required. An average sheller can open one nut in about six

seconds or ten nuts per minute. In an eight-hour working day, this

amounts to about 4,800 nuts or about 5kg of kernels. At an extraction

rate of 24%, this quantity corresponds with about 21kg of raw nuts per

day or about 7 tons per year. However, experienced shellers in India

can produce around half as much again, with a quality of 90% whole

kernels.

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Mechanical Shelling Method

Mechanical shelling methods are difficult to design because of the

irregular shape of the nut, hardness of the shell and brittleness of the

kernel. In some mechanical processing plants compressed air is used to

crack the nuts. The latest Windmer and Ernst method is to cut a groove

around the shell and to place the shell in a modified centrifuge fitted with

mental plates. The nuts are thrown against the plates and cracked by

centrifuge forces when the machine spins. It is possible to obtain 85%

whole kernels with this method.

Removal of the testa:

Before the thin, papery seed coat (testa) can be removed, the kernel

must be dried. Nuts are dried on big racks in an over at 70˙C.The testa

becomes dry and brittle and is easily removed. The remaining traces of

membrane are removed with bamboo knives. Modern factories use

electronic machines to detect nuts with pieces of remaining testa which

are then sorted and cleaned by hand.

The most successful mechanical shellers work on a nut which have

previously passed through the ‘hot oil’ process and is detailed under the

paragraph ‘centrifugal shellers’.

A semi-mechanised process that has been used predominantly in

Brazil uses a pair of knives, each shaped in the contour of half a nut.

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When the knives come together by means of a foot operated lever, they

cut through the shell all around the nut, leaving the kernel untouched.

Two people work at each table; the first cuts the nuts and the second

person opens them and separates the kernel from the shell. Daily

production is about 15kg of kernels per team.

The first mechanised shelling system, Oltremare, is also based on

two nut-shaped knives. The nuts are brought to the knives on a chain,

each nut in the same position to fit between the knives. The nuts are

pushed between the knives and cut. The chain itself has to be fed

manually. After coming together, the knives make a twisting movement,

thus separating the shell halves. The disadvantages of this method are

that nuts smaller than 18mm cannot be processed and output is reduced

because not all the spaces on the chain can be filled which can count for

as much as 10% of the production volume.

The shelling machines of the Cashco system are also chain fed but

the nuts are automatically placed in the right position. The shelling

device has two knives that cut the sides of the nut and a pin that is

wedged into the stalk end of the nut separates the shell halves. The

advantage of this system is a fully mechanised operation with an output

of about 75% whole kernel qualities. Nuts smaller than 15mm cannot be

processed.

Centrifugal shellers use a system which is simple and enables a

continuous flow. A rotary paddle projects the shells against the solid

casing and the impact cracks open the shell without breaking the kernel.

All sizes of nuts can be processed by this method; however, it is

necessary to grade the nuts into four or so group ranges because a

different rotary speed is used for the various size groups. The percentage

of whole kernels produced is around 75%. By preparing the shells with

grooves and weakening the strength of them before the operation begins,

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the percentage can be increased. The speed of the rotor can thus be

turned down and the risk of damaging the kernels is reduced.

Separation

After shelling, shell pieces and kernels are separated and the

unshelled nuts are returned to the shelling operation. Usually blowers

and shakers are used to separate the lighter shell Pieces from the kernels.

The greatest problem is to recover small pieces of kernel sticking to the

shell. This is usually done manually from a conveyor belt used to carry

all the sorted semi-shelled nuts.

Pre-grading

Pre-grading can be done before or after drying the kernels and may

greatly reduces the final grading work. For large-scale processors pre-

grading can be done mechanically, separating mainly the whole from the

broken kernels and sometimes separating the different size groups of

whole kernels.

5. Drying

Harvested nuts are dried in the sun for a few days. Properly dried

nuts can be stored for 2 years before being shelled. Nuts are roasted to

discharge the caustic shell oil and acrid fumes. Hand shelling is

impossible if the shell oil has not been removed previous. Kernel must be

protected from contamination by the shell oil has because it would cause

blisters in the mouth and throat when eaten. Before the nuts are roasted

they must be soaked in water-the moisture in the shell facilitates the

rupturing of the cells containing shell oil and retaining it in the shell.

Moisture makes the kernel slightly rubbery and limits breakage of the

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kernels. The easiest method to wet the shells is to heap the nuts into big

piles and to use sprinklers intermittently. Steam may also be used.

The shelled kernel is covered with the testa and to facilitate

removal, i.e. to peel in order to produce the blanched kernel, the shelled

kernel is dried. This also protects the kernel from pest and fungus attack

at this vulnerable stage. The moisture content is approximately 6%

before drying and 3% after. It is important that the drying capacity is

higher than the shelling capacity in case of periods of heavy rainfall

because the drying operation will be lengthened since the kernels will

absorb the moisture very quickly. Sun drying, where the kernels are

spread out in thin layers under strong sunshine is possible; however

artificial drying becomes necessary for medium or larger-scale producers.

Drying usually takes six hours, at a temperature of around 70C. A

uniform temperature throughout the drier is essential to avoid under

drying or scorching. And 6 shows an ITDG tray dryer, details of which

are available on request. It is in the dried condition the kernels are most

vulnerable, being both brittle and susceptible to insect infestation.

Therefore, at this stage, they must be handled with care and moved to the

next stage of peeling as quickly as possible.

6. Peeling

At this stage, the testa is loosely attached to the kernel, although a

small amount of kernels may have already lost the testa during the

previous operations. Manual peeling is done by gentle rubbing with the

fingers. Those parts still attached to the kernel are removed by the use of

a bamboo knife. One person can peel about 10-12kg of kernels per day.

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The mechanised processes of peeling differ widely. They include

air-blasting, suction, a freezing operation and a system of rubber rollers.

The operation has a low efficiency due to the difficulty of removing the

testa and the amount of breakages can be as high as 30%. Currently

research and development is taking place to improve the viability of the

mechanization of this operation.

7.Grading

The grading operation is important as it is the last opportunity for

quality control on the kernels. With the exception of a few grading aids,

all grading is done by hand. Power driven rotary sieves are one

mechanical method, another being two outwardly rotating rubber rollers

aligned at a diverging angle. For a large operations looking towards

export markets, it is necessary to grade the kernels to an international

level. Kernels, whole and broken, are sorted into 6 grading schedules.

There is only a demand for broken or dark and unevenly roasted kernels.

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Rehumidification

Before the kernels are packed it is necessary to ensure that their

moisture content rises from 3% up to around 5%. This is to make the

kernels less fragile, thus lessening the risk of breakage during transport.

In humid climates, the kernels may absorb enough moisture during

peeling and grading to make a further Rehumidification process

unnecessary. Packing

8. Packing

MS barrels shall be required for packing, for which prior

arrangements need to be made. Jute/PP(Poly- Propylene) woven bags of

50/25Kg used as export standard, bearing the following labeling

requirements:

Name of the product

Country of origin

Name of importer

Net weight

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PROCESSING OVERVIEW

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CASHEWNUT SHELL LIQUID

INTRODUCTION

Cashew nut Shell Liquid (CNSL) is a honey comb structure

containing dark reddish brown viscose liquid. It is a by-product of the

cashew industry which is the pericrap fluid of the nut. It is considered to

be better as well as cheaper material for unsaturated phenols. It is

exported to countries like Japan and Korea and its domestic use is also

increasing. Konkan region of Maharashtra could be an ideal location as

there are many manuals and few mechanized cashew processing factories

in the region. Likewise, there are several processing factories in adjoining

Goa state as well. Kerala can also be an ideal location.

MANUFACTURING PROCESS

The process is well-established as extraction of oil by expeller

process is practiced since long. Cashew shells are fed to the expeller to

extract remaining oil. Oil thus obtained, is filtered with the help of a filter

press and then weighed and packed in MS barrels. Recovery of oil is

around 20%. This is known as untreated CNSL. Its colour should be dark

reddish brown when viewed by transmitted light. This oil can further

treated to remove metallic impurities and trace of sulphur compounds.

Specification for Cold Pressure Cashew nut Shell Liquid

Cashew nut shell liquid is also produced by the 'Cold Pressed'

method in solvent extraction plant. Cashew nut Shell Liquid is a by-

product of the cashew industry. The nut has a shell of about 0.1 inch

thickness inside which is a soft honeycomb structure containing a dark

reddish brown viscous liquid. It is called the cashew nut shell liquid,

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which is the pericrap fluid of the cashew nut. Cashew nut shell liquid is a

natural product that is used as raw material for the synthesis of wide

variety of polymers and water resistant resins. We have carved a niche as

one of the most distinguished natural cashew nut shell liquid suppliers in

India. In addition to this, the natural cashew nut shell liquid supplied by

us finds numerous applications in the industries like automobile, paint

and so on and so forth.

Specification for Treated Cashew nut Shell Liquid

The cashew nut shell liquid as extracted has a strong vesicant

dermatatic action. Before this liquid is utilized for preparation of resins, it

requires treatment to get rid of metallic impurities as well as traces of

sulphur compounds. The liquid thus treated is known as “Treated Cashew

nut Shell Liquid ".

CHEMICAL STRUCTURE C.N.S.L

Cashew nut shell liquid or CNSL or Cashew Nut Oil or Cashew

Shell Oil or CNSL Oil is a versatile by product of the Cashew industry.

The nut has a shell of about 1/8 inch thickness inside which is a soft

honey comb structure containing a dark reddish brown viscous liquid.  It

is called CASHEW NUT SHELL LIQUID or CNSL. This is the pericrap

fluid of the Cashew Nut.  It is often considered as the better and cheaper

material for unsaturated phenols.

CNSL has innumerable applications, such as friction linings,

paints, laminating resins, rubber compounding resins, cashew cements,

polyurethane based polymers, surfactants, epoxy resins, foundry

chemicals, and intermediates for chemical industry.  It offers much scope

and varied opportunities for the development of other tailor-made

polymers.

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Cashew Nut Shell Liquid has innumerable applications in polymer

based industries such as friction linings, paints and varnishes, laminating

resins, rubber compounding resins, cashew cements, polyurethane based

polymers, surfactants, epoxy resins, foundry chemicals and intermediates

for chemical industry. It offers much scope and varied opportunities for

the development of other tailor - made polymers. There are more than

200 patents on CNSL for its industrial applications.

CNSL undergoes all the conventional reactions of phenols, CNSL

aldehyde condensation products and CNSL based phenolic Resins are

used in applications such as surface coatings, adhesives.  Various

polyamines synthesised from CNSL are used s curing agents for epoxy

resins.  CNSL and its derivatives have been used as antioxidants,

plasticizers and processing aids for rubber compounds, modifiers for

plastic materials and used to provide oxidative resistance sulphur-cured

natural rubber products.  It is also added to rubber gum stock or nit

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riles rubber to improve the processability, mechanical properties and

resistance to crack and cut properties of the vulcanisates.

A number of products based on CNSL are used as antioxidants,

stabilisers and demulsifies for petroleum products.  Soluble metal

derivatives of C.N.S.L are used to improve the resistance to oxidation

and sludge formation of Lubricating oils.  Oxidised CNSL and its

derivatives are also used as demulsifying agents for water in oil type

petroleum emulsions.

CNSL or CASHEW NUT SHELL LIQUID OIL used for

manufacturing of CNSL Resin, Cardanol  or Card Phenol or Cashew

Phenol, Cashew Friction Dust, Anti corrosive hiring (lining) chemicals,

Paints, Varnishes, Enamels, Insecticides and Fungicides,

Cashew Lacquers, Bakelite,  Electrical conductress, Cashew Cements,

Core Oil, Red Oxide, Wood, Fuel, Specialty Chemicals, Foundry

Chemicals and many other

Industries.

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  Cashew Nut Shell Liquid,   Specifications :

Specific Gravity 300 C   : 0.950 - 0.970

Viscosity 300 C in centipoises   : 250 max. (Last tested 160)

Moisture by weight     : 1.0

Matter insoluble in toluene weight   :1.0

Loss in weight on heating   : 2

Ash % by weight     : 1.0

Iodine Value :  (min.)

a) Wij’s Method    : 250

b) Catalytic method    : 375

  

Polymerization:

a)  Time in Minutes    :  4

We Offer good quality Cashew Nut Shell Liquid, Packing in 200

kg Drums/Barrels or Bulk Tank. 

Only Serious Buyers, who wish to purchase Superior Quality, are

requested to contact us.

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ADVANTAGES

Advantages of CNSL based Polymers

Improved Flexibility and reduced brittleness.

Solubility in Organic Solvents.

Improved Processability.

Low Fade Characteristics for Friction.

Resistance to 'Cold Wear'.

Good Electrical Resistance.

Better Water Repellence.

Improved alkali and acid resistance.

Compatibility with other polymers.

Antimicrobial Property.

Termite and Insect Resistance.

Structural Features for Transformation into High Performance Polymers.

Polymerisation Characteristics of CNS

CNSL can be polymerized by a variety of methods :

Addition Polymerisation through the side chain double bonds

using cationic initiators such as sulphuric acid, diethylsulphate etc.

Condensation Polymerisation through the phenolic ring with

aldehydic compounds.

Polymerisation after Chemical Modification to introduce speciality

properties.

Oxidative Polymerisation.

Various Combinations of the above.

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Industrial Significance of CNSL

Low Cost Phenol.

Versatility in Polymerisation and Chemical Modification.

Possibilities for Development of High Performance Polymers.

Property advantage over phenolics in certain applications such as

impact resistance, flexibility, faster heat dissipation etc.

CASHEW NUT SHELL CAKE

Empowered with robust infrastructural base and qualified team, we

bring forth an ample assortment of high quality cashew nut shell cake.

We are well reckoned as one of the supreme De-Oiled cashew shell cake

exporters and manufacturers in the national and international market.

Crushed cashew nut shell cake provided by us is highly acclaimed for

quality and performance.

Widely used by tile manufacturing, cashew and many more industries,

our cashew nut shell cake is the perfect blend of long lasting shelf life

with efficiency. We deliver crushed cashew nut shell cake within the

stipulated time frame and that too at very reasonable price.

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It is one of the best fuels. It is mainly used by cashew industries,

tile manufacturing units and others. The chemical analysis of the cashew

shell oil cake is as follows

The Cardanol Resin Plants offered by us is based on cashew nut

shell liquid. These Cardanol Resin Plants are used in the processing of

alkyd and Cardanol in 5 TPD and 1500 TPA capacity. These plants are

manufactured in conformation to the international standards and are

known for easy installation, high capacity, durability and outstanding

quality.

Specifications:

Resins CAPACITY

TPD TPA

ALKYD Resin From CNSL 5 1500

Cardanol From CNSL 5 1500

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INRODUCTION

Market is place where goods are bought and sold. But today

market means anybody of people who are in intimate business relation

and carry on extensive transactions in any commodity.

Marketing is concerned with the flow of goods from the point of

consumption. It means distribution of goods from the producer to final

consumers. And it does not mean mere transfer of goods from seller to

buyers. Thus it is an all activities involved in the creation of place, time,

possession, knowledge and utility.

MARKETING OF CASHEW NUTS

Marketing of raw cashew nut in India has not yet been organized in

systematic manner except in Goa where co-operative marketing society is

procuring raw nuts to the little desired extent. A major portion of the

produce is brought by itinerant merchants and the agents of the

processing units. A number of wholesale merchants and processing

factories open their collecting centers in important cashew producing

areas during the harvesting period. The petty dealers who buy the nuts

from the growers also dispose the nuts in these collecting centers.

Cashew nuts are brought for sale to the assembling markets largely by the

itinerant merchants. In certain areas, the most resourceful processors

contact the producers thus avoiding the commission agent’s role and

enjoy good bargaining power by providing credit facilities to the

producers.

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CHARACTERISTICS OF MARKETING

It is surrounded by needs of consumer.

It is business and business is marketing.

It focuses on goods, services, and needs.

It focuses on the delivery of value to the others.

It deals with products, distribution, promotion and pricing.

MARKETING CHARACTERISTICS OF CASHEW NUT

The food processing industry is the major traditional consumer

of cashew nuts in confectionery and bakery products such as

sweets, ice creams, cakes, and chocolates.

The most popular cashew nuts imported are white whole

kernels of count 320.

Nuts are usually roasted and salted by European processors in

order to meet the taste requirements of individual markets.

Between 1999-2003 both in import trend in value and quantity

for Indian imports have increased by 4% and 18% respectively.

Recognized buying agents do the networking and aggregate

nuts from producers for the exporters on contract bases.

The exporters in most cases provide funds in advance for the

purchases on agreed terms. These transactions are however

based on mutual trust between the exporter and the agent.

Average minimum prices are determined by exporters after

negotiation with principals of importing companies based on

world market prices at the beginning of the season.

India is the major importer of Ghanaian cashew nuts though

Vietnam and Hong Kong have also recorded small volumes.

No import duty is levied on cashew nuts to the EU. However,

India applies 35% levy on imported cashew nuts.

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FUNCTIONS OF MARKETING

A marketing function may be defined as “An act or operation or

service by which original producer and final consumers are linked”. In

other words concentration, dispersion and equalization are collectively

known as marketing functions. The scope of marketing can be shown as

follows:

MARKETING FUNCTION

I. FUNCTION OF EXCHANGE

The process of movement of goods from producer to consumer is

called exchange. The important functions of exchange are;

1. BUYING

It is the first function of marketing. It is concerned with

procurement of raw-materials by manufacturer and final goods by

wholesaler& retailers.

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FUNCTION OF PHYSICAL SUPPLY

FUNCTION OF EXCHANGE

FACILITATING FUNCTION

BUYINGASSEMBLINGSELLING

PACKAGINGSTORAGETRANSPORTATION

FINANCERISK BEARINGSTANDERDISATIONGRADINGPRICINGADVERTISINGSALES PROMOTION

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KVS factory collects raw- cashew nuts from the local as well as

from foreign markets. The factory makes import from Indonesia,

Benin, Ivoire.

2. ASSEMBLING

It is concerned with collecting and concentrating goods of the

same type from the different sources or it is the process of collecting

raw-material from various sources to a common point as a part of the

production process.

3. SELLING

It is concerned with transfer of goods from producer to traders

and from traders to consumers. Under this function ownership of

goods is transferred from the seller to the buyer. The selling is a part

of marketing and seller directly interacts with the customer. It is at

this point that marketing action takes place.

KVS products are marketed at Bombay, Delhi, Ahmadabad, and

Hyderabad, Bangalore in domestic and exported to Gulf, USA, Japan,

and Singapore UK etc.

II. FUNCTION OF PHYSICAL SUPPLY

1. PACKAGING

In simply it is the process of wrapping the products in order to

protect goods from damages. Packaging is traditionally done to

protect the goods from damage in transit and to facilitate easy transfer

of goods to customers. But now it is also used by the manufacturer to

establish his brand image as distinct from those of his rivals.

Another activity connected with packaging is LABELLING. It is

putting identification marks on the package. Label is an important

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feature of a product. The label is used to communicate brand, grade

and other information about the product. The major labeling

requirements:

Name of the product

Country of origin

Name of importer

Net weight

CASHEWNUT PACKING

The normal packaging for export of kernels is in air-tight tins of 25

lbs in weight. The packing needs to be impermeable as cashew kernels

are subject to rancidity and go stale very quickly. The tin will be familiar

to most tropical countries as it is a replica of the four gallon kerosene or

paraffin oil tin. If possible the tins are made locally as movement of an

empty tin overseas is expensive. Alternatively, it might be arranged to

purchase components and finish the manufacturing locally. This may be

done by arrangement with tin manufacturers. The output of a tin

manufacturing line is usually too large for one consumer but some

cashew nut other processors have in fact installed their own tin making

plant and supply other processors.

After filling and weighing, the cap should be soldered on in

preparation for the ‘vita pack’ process. This consists of removing all air

from the tin and substituting this with carbon dioxide (CO2).The

advantages of packing cashew kernels in carbon dioxide are twofold.

Firstly, carbon dioxide is an inert gas and will not support life. Any

infestation that may have been present is, therefore, arrested. Secondly,

carbon dioxide is soluble in cashew oil and goes into solution as soon as

the seals are made. In a short space of time, it can be seen that a decrease

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in pressure takes place as the carbon dioxide goes into solution and the

sides, top and bottom are drawn inwards. Thus the kernels are held tight

in the tin, preventing movement and breakage during transport. Carbon

dioxide, being a heavy gas causes the upward displacement of air and

will remain in the tins after the filling process. Some large-scale

machines will operate on six tins at a time, creating a vacuum in each and

then filling with carbon dioxide.

The Some processors do not have vacuum pumps and displace the

air in the tin by feeding in carbon dioxide through a small hole in the

bottom of a side of the tin. The carbon dioxide valve is turned off when

all the air has been replaced. The holes in the tin are then sealed, with the

hole at the bottom of the side of the tin being done first, and the one on

the top last.

Secondary Packaging

A packaging solution is incomplete without some means of

decorating your product, protecting it and supplying important

information. We offer machines for Labeling, Cartoning, Coding, etc, to

complete the job.

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Inspection Systems

To keep your consumer happy and safe, packages have to be

contaminant free. Metal Detectors, X-Ray systems and Vision systems do

the job admirably. Check Weighers verify contents and if required can

provide real-time feedback to filling equipment for weight correction.

Product Handling and End of Line Packaging

Many a time, packaging line efficiencies are low due to poorly-

designed product handling systems. At Clear pack we give special

attention to product handling system design. We have different types of

case packers, including bottom load, end/side load, top load and wrap

around, with various speeds from low to high (up to 100+ cases per

minute). Low-end, semi-automatic case packers are also available. We

also have a full range of case palletisers, including robotic arm, low level,

and high level and Gantry type. Speeds range from low speed to high

speed (Up to 200 cases per min).

2. STORAGE AND WAREHOUSE

Storage refers to holding goods for the purpose of preserving them

through out the year. Goods must be stored properly in warehouses to

protect them from any damage which may be caused by ants, rats,

moisture, sun, theft, etc, till they are sold out.

3. TRANSPORTATION

It is the physical movement of goods from the point of origin to the

point of consumption. It helps manufacturers to get raw-materials to

factories and products to market.

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Cashew nut delivery made through the shipment. Shipment should

take place as early as possible after drying with in a maximum period of

90 days to avoid deterioration and spoilage of the raw-nuts.

Regular shipping facilities are available from India to all ports of

the world, the front runner in carrying out shipment being the Cochin

port. The other contributing ports are Tuticorin, Mangalore, Madras, and

Bombay. Regular services of container ships are available from Indian

ports on India-USA, India-Japan, India-Australia, India-Singapore.

In order to ensure safe transport, the bags must be stowed and

secured in the means of transport in such a manner that they cannot slip

or shift during transport. Attention must also be paid to stowage patterns

which may be required as a result of special considerations.

III. FACILITATING FUNCTION

Facilitating functions are those activities for supporting

the smooth flow of goods from the point of production to the

point of consumption. The important supporting functions are;

1. FINANCE

It is the money or credit required for starting and running of

business. Marketing requires different kinds of finance such as

short term, medium term & long term finance. Generally banks &

financial institution provide necessary finance required by

marketing organization.

KVS factory has been partly financed by Axis Bank Syndicate

Bank.

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2. RISK BEARING

Risk may be defined as uncertainty with regard to cost loss

or damage. In other words it is the possibility of loss due to

unfavorable happenings in the future. There may be loss of goods

due to fire, theft, flood, earthquake, accidents etc.

KVS factory faces risks such as war, political instability etc

while exporting their products.

INSURANCE

Insurance provides protection against various risks. They

can cover the risks on payment of a nominal premium and recover

the loss, if any, arising out of the risks.

KVS followed with ECGC insurance.

3. STANDARDISATION

The setting up of standards or specifications of a product

and maintaining these standards are known as standardization.

Standardization is the basis of grading. It facilitates trading, as the

parties know the product standards. Standardization of goods helps

sale of goods by convincing the customers about the quality of the

goods. Moreover, standardized goods fetch higher price from the

customers who are quality conscious.

REGULATION, STANDARD AND QUALITY OF CASHEW

Qualities are that characteristics which distinguish one article from

another or the goods of one manufacturer from those of his competitors,

or one grade of product from another, when both are turned by some

factory.

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The quality of cashew kernels depends on the quality of raw nuts.

The following are the various factors which the exporters should consider

throughout the process from harvesting to shipment to ensure the quality

of their raw cashews:

The nuts should be harvested only after they have fallen to

the ground.

The nuts should be sun-dried immediately after harvesting.

During the drying process (which normally lasts two to three

days), the nut density should not exceed 20Kg per square

metre.

The nuts should be turned over regularly to ensure uniform

drying until the kernels rattle in the shell.

When dry, the nuts should be stored in dry jute or sisal bags

in well-ventilated dry rooms.

Shipment should take place as early as possible after drying

within a maximum period of 90 days to avoid deterioration

and spoilage of the raw nuts.

QUALITY SPECIFICATION FOR CASHEW NUTS

PARAMETERS VALUE

OUT TURN 44-52lb/80Kg

NUT COUNT 160-240

MOISTURE 9%

FOREIGN MATTER 0.25%

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Where Out turn means weight of kernel recoverable from raw

nuts measured in pounds (lb) per kilo bag.

Nut count means number of nuts in a kg measure.

Quantity: Minimum requirement should be One 20ft Full

Container Load (FCL).

4. GRADING

Grading means division of products into different grades or classes

made up of units possessing similar features as regards size, weight

and quality.

Grading is done in accordance with the specifications set up by the

standards.

Cashew Kernels are graded into white/scorched Wholes, pieces

splits, butts etc., depending on the Shape, size and colour of the

kernel. The Government of India Act prescribes 33 different grades of

cashew kernels. Only 26 grades are commercially available and

exported. Cashew nut-splits W - 180, are the ' King of Cashew ' -

They are larger in size and very expensive. W - 210, is popularly

known as 'Jumbo' nuts. W - 240, it is an attractive grade which is

reasonably priced. W - 320, are the most popular among cashew

kernels and highest in terms of availability, world wide W - 450, are

the smallest and cheapest white whole kernels and hence the favorite

among low priced whole grades.

Cashew Nut Kernels is processed from Raw Cashew.  Cashew

Kernel intact from the shell and grading them carefully to

superior standards required by top food companies all over the world.

The un-shelled nut is steamed to soften the shell and carefully cut open.

The kernel is dried to loosen the skin which is then peeled off. Whole

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kernels are graded by size and color. Pieces are chopped into required

sizes. After final QC including metal detection, they are packed in

vacuum for freshness.

Following grades of CASHEW NUT KERNELS are normally

available for Local and Export.                 

Grades W320, W240, LWP, W450, Splits, K, SP, SWP, BB.

For Local supply Tin Packs of 10 kg or 11.34 kg each is available.

 

We can also Export Small Quantities of Cashew Nuts as a Trial

Shipment to test the Quality of Cashew nut,   starting with 1,000 kg    by

Air  or  by Courier Export  or   by  Sea Freight for the importers/Buyers

who really want to place  Full Container Order later onwards.

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5. PRICING

Price of a product is influenced by the cost of production and

services offered, profit margin desired, prices fixed by rival firms and

Government policy. A sound pricing policy is an important factor for

selling the products to the customers. The pricing policy of a firm

should be such that it attracts all types of customers of different

means.

Price means the exchange value of products in terms of money.

Pricing means fixing a reasonable money value to the product on the

basis of quality, quantity, package, colour etc. Price fixation is

primarily based on four conditions such as;

Pricing to attain organizational objective.

Pricing to cover the cost of the product

Pricing to meet competition in the market

Pricing in order to capture customer demand.

PRICING OF CASHEW

Market prices have been good (at $637 US dollar per ton in 2003)

and have been increasing steadily. Currently the price ranges from $650

to $700 according to the Public Ledger.

Pricing strategy is based on the world market pricing which is

ultimately determined by demand, competitiveness and available market

information. It has been established that prevailing prices at any given

time depend on the origin of the product. During 1980-1990s period,

prices were good for Indian cashew nut, which selling price was between

US $1,188 and 1,012 per metric ton/FOB.

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ORDER PROCESSING

It is the manner in which customers order are procured or processed

is a factor which determines the extend of service available to them.

Order processing takes the following steps;

Receipt of order by the salesman.

Transmission by the salesmen to the firm.

Entry of the order into the firm's books.

Checking the customer’s profile.

Inventory and production scheduling.

Invoicing and shipment.

Receipt of payment.

The speed with which the processing takes place determines the

quality of customer service.

ORDER PROCESSING FOR CASHEW

Usually orders are placed after acceptance of samples and on

agreed mutual terms. Cashew nuts are traded on FOB or CIF basis

subject to agreement between parties. Payment is usually cash against

document but the letters of credit (L/C), confirmed and irrevocable, are

used with certain origins. To create goodwill, new suppliers are advised

to offer advantageous terms such as payment on arrival and after

inspection or drawing a certain percentages against the L/C, the rest to be

paid after inspection.

PRICES IN INDIA

Crisis in the industrial sector in Vietnam and Brazil, main

competitors of India in the cashew-nut market has resulted in its price

reaching a high of USD 3.60 per pound in global markets as against USD

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1.90 per pound about six months back. This has been the main reason for

India, the biggest cashew producer in the world, getting a record price,

Cashew Export Promotion Council Chairman, P Bharatan Pillai said.

India exports cashew-nut primarily to USA, Europe, Japan and

Australia. Demand for Indian cashew-nut increased as both Vietnam and

Brazil failed to meet orders for cashew-nut from other countries leading

to a rise in its prices, he said. Sellers involved in the futures market

would have to supply the product at the price fixed earlier, while those

sellers who stocked the commodity would get a better price.

Pillai said the impact of the price was less in the national market.

The price for super quality cashew-nut in the national market ranges from

Rs 500 to Rs 550. Unseasonal rains from March-April 2008 affected the

crop and the default on Vietnam's part in delivering the commodity also

hit supply, he said, adding that business was quiet for the past couple of

weeks.

6. ADVERTISEMENT

For the domestic market, KVS advertises through news papers,

magazines, & other out door means. For the international market, all the

advertising is done by the Cashew Export Council of India; this council

was set up by the Government in 1955.

7. SALES PROMOTION

Promotion deals with informing and persuading the customers

about the firm’s product. It is communication between seller and buyer. It

is telling and selling. It involves various activities which a company may

undertake to communicate its products merits to its present and potential

customers in order to persuade them to buy the product. It motivates the

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people to buy whatever a company is selling.From KVS & SONS point

of view, domestic market is given only secondary importance, since

primary stress is laid on export and international markets. Recently

cashew nuts have been considered more of a luxury item, and as such the

domestic market has never seen to be encouraging as far as the

producer’s prospects are concerned. However of late, even the middle

class people have begun accepting cashew nut as a part of their diet.

OBJECTIVES OF PROMOTION

The basic objectives are to bring about the sales of a product.

To creating awareness.

To stimulate demand.

To help distribution or agents.

To stabilize sales.

To popularize brand name.

Exporters can place advertisement in specialized publications.

(Indian Cashew Journal and Public Ledger) or through the web. In

addition, participation in trade fairs, International Cashew Congress and

undertaking trips to target markets can introduce new contacts; provide

information on market trends and commercial practices.

From KVS point of view domestic market is given only secondary

importance, since primary stress is laid on exports, & international

markets. Recently cashew nut has been considered more of a luxury

items, and as such the domestic market has never seen to be encouraging

as far as the producer’s prospects are concerned. However, of late even

the middle class people have begun accepting cashew nut as a part of

their diet.

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FINDINGS

The main products produced by ‘KVS’ are cashew kernels and

CNSL.

Raw nuts are collected by importing from Indonesia, Benin, Ivoire,

and local market.

21 Kg nuts must be shelled by each cutter at KVS.

It is found that manual peeling is better, because breakdown of

kernels high in mechanical peeling, it makes loss.

Overtime work of peeling section can be done by workers at their

home itself.

KVS products are branded with the name ‘KVS’ it self.

It is observed in the study that the overall performance of KVS is

satisfactory.

Firm gives more importance for international trade.

Advertisement made through the Cashew Export Council.

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SUGGESSTIONS

The firm should conduct marketing research for increasing sales.

Firm should attach good label while packing.

The firm should take good steps to give advertisements to the

public.

Efforts should be made to procure raw material at cheaper rate

&should concentrate on the quality of the product.

Regular checking of final product is important.

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CONCLUSION

This study is made an attempt to know overall production

process and marketing activities of cashew nut. It was found with the

help of' 'KVS& SONS' cashew factory.

The cashew kernels are largely used by the food processing

industry, as it is in confectionary and bakery products such as sweets, ice

creams, cakes, chocolates etc. And the CNSL is used in paint industries

for the manufacture of paints and varnishes, water proofing compound

for Boats and Vessels, Lubricant for break liner.

The major processing steps includes; soaking, roasting,

shelling, CNSL extraction, drying, peeling, grading, packaging. And

machines and equipments needed for process are; Roaster, Sheller,

Cashew nut Decorticator, Dryers, oil expellers, trollys.

KVS produces good quality of products at reasonable price, also

factory provides employment opportunity for local people at Shakthi

Nagar, Mangalore.

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BIBILIOGRAPHY

Website

www. KVS Kamath &Sons.com.

www.google.com

Books

Philip Kotler, “Marketing Management, Twelveth Edition,

Prentice Hall of India Private Limited- New Delhi.

Production and Operations Management-K. ASHWATHAPPA,

SHRIDHARA, BHAT.

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