kerafed os

Organization study at KERAFED

CHAPTER-1

INTRODUCTION

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INTRODUCTION

An organization is viewed as a group of persons formed to seek certain goals. Each and

every organization has its own importance in the wealth of the nation. Different

organization meets different products and services. In this fast changing business scenario

it is imperative for every aspirant of business to have a vivid understanding of the

functional application of the new age business

The organization study undertaken as a part of the curriculum was done at “T he

Kerala Kerakarshaka Sahakarana Federation Ltd” (KERAFED), Thiruvananthapuram.

This study provides an opportunity to expose to an industry/ organization and its

operational conditions. This study also aims at having a better understanding of various

departments and its functioning

This report consists of a detailed study of the history of the company, product

profile, organizational hierarchy, various departments and their functioning etc. This

study proved too fruitful by familiarizing us to the organization and at the same time it

also helped to create practical awareness

The KERAFED was selected for undergoing organization study for the following

reasons

It is a co-operative federation of the coconut farmers in Kerala

The largest producer of coconut oil in India

It strengthen the co-operative movement

It is the single largest producer of copra/coconut

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It increases the income of 29 lakhs farmers families and create employment

opportunities in the industrial sector

1OBJECTIVES OF THE STUDY

To get practical exposure to the organization

To understand the organization structure of KERAFED

To do an internal study about the working and functioning of the

organization

To get an idea about the various department and functional areas in the

organization

To get an idea about the work culture in the organization

To study the product profile and get idea about the various products

offered

To study the communication network in the organization

METHODOLOGY

The study was conducted using the method of interview and observation

and also made use of the primary and secondary data

Primary data

Primary data is collected throughobsevation or through direct

communication with resondentsin one form or another or through personal interviews.

The formal and informal interviews with Managers and Department heads,

employee

Direct observation

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Secondary data

Secondary data are those which have been collected by someone else and which have

already been passed through statistical process. The secondary data were collected from

Company records

Journals

Annual report.

Website

SCOPE OF THE STUDY

The study restricted to the functioning of KERAFED, Head Office, Vellayabalam,

and Thiruvananthapuram. The study gives a detailed knowledge about the different

functional areas like finance, marketing, operations and their functions

The study covers the various aspects of kera industry and the different functioning

of KERAFED. The main topic include the following

Profile of the kera industry

Company profile

Product profile

Functioning of various departments

Findings&suggestions

SWOT analysis

Porter’s Five Force Model

PESTLE Analysis

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LIMITATION OF THE STUDY

The study was limited, because the time period allotted was not sufficient to conduct a

thorough study on the functioning of the organization. The employee of the various

department were not able to spend enough time in explaining the functions of their

department, as it affected their work schedule. Respondents were reluctant to reveal

complete details. This lack of knowledge of the respondents and the bias of them has

acted as a hindrance to the study

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CHAPTER –II

INDUSTRY PROFILE

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THE HISTORY OF EDIBLE OIL INDUSTRY

Vegetable fats and oils are lipid materials derived from plants. Physically, oils are liquid

at room temperature, and fats are solid. Chemically, both fats and oils are composed of

triglycerides, as contrasted with waxes which lack glycerin in their structure. Although

many different parts of plants may yield oil,[1] in commercial practice, oil is extracted

primarily from seeds. Vegetable fats and oils may be edible or inedible. Examples of

inedible vegetable fats and oils include processed linseed oil, tung oil, and castor oil used

in lubricants, paints, cosmetics, pharmaceuticals, and other industrial purposes

Vegetable oil economy deals with the potential of vegetable oil to replace fossil

fuels in the economy and how it compares to other potential replacements,

including renewable electricity. Vegetable oils are the basis of biodiesel, which can

be used like conventional diesel. Some vegetable oil blends are used in unmodified

vehicles, but straight vegetable oil needs specially prepared vehicles which have a

method of heating the oil to reduce its viscosity and surface tension. Another

alternative is vegetable oil refining

The availability of biodiesel around the world is increasing, although still tiny

compared to other fossil fuel sources. There is significant research in algaculture

methods to make biofuel from algae.

Concerns have been expressed about growing crops for fuel use rather than food

and the environmental impacts of large scale agriculture and land clearing required

to expand the production of vegetable oil for fuel use. These effects/impacts would

need to be specifically researched and evaluated, economically and ecologically,

and weighed in balance with the proposed benefits of vegetable oil fuel in relation

to the use of other fuel sources.

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INDIAN EDIBLE OIL INDUSTRY

Oilseeds and edible oils are two of the most sensitive essential commodities. India is one

of the largest producers of oilseeds in the world and this sector occupies an important

position in the agricultural economy and accounting for the estimated production of 28.21

million tones of nine cultivated oilseeds during the year 2007-08. India contributes about

6-7% of the world oilseeds production. Export of oil meals, oilseeds and minor oils has

increased from 5.06 million Tones in the financial year 2005-06 to 7.3 million tons in

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

cores to Rs.7997 cores. India accounted for about 6.4% of world oil meal export

Climatic conditions in India favor growing a variety of oilseeds. On the demand

side, a growing population and vastly varied dietary habits have ensured a thriving

market for edible oil in the country. In fact, there is a substantial demand overhang,

which is expected to continue for some years. At present, this is offset by imports that

cater to almost half of the total domestic consumption. With cheap imports threatening to

cripple the domestic industry, the government is walking a tightrope between filling the

demand .Supply gap and the political need to keep the domestic industry in good health.

Unorganized, medium and small players dominate the industry. Hence, quality remains a

concern. There is need for better regulatory control to protect consumers. An average

Indian's yearly edible oil requirement has gone up from 7.0 kg in 1996-97 to 11.8 kg in

2000-01. Despite the variety of oilseeds grown in India, the country imports a substantial

quantity of edible oil, which also works out cheaper. Allied factors contributing to

imports are the higher cost of cultivation in India and uneconomic oil extraction systems.

Oilseeds in India account for around 5.0 percent of the Gross National Product (GNP)

and 14.0 percent of the country's area under cultivation of crops. Castor, Groundnut,

Linseed, Niger, Rapeseed, Mustard, Safflower, Sesame and Sunflower are some of the

major oilseeds grown. India produces 10 percent of the world's oilseeds, but has a low

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productivity of around 850-900 kg per hectare (compared to a world average of around

1,100-1,350 kg per hectare). The amount of oil extracted from the seed varies with the

type and quality of seed. In many cases, the oil recovery rate is upwards of 30.0 percent

with Sesame accounting for a high 45.0 percent. Domestic consumption of edible oils has

been growing at 4.0-5.0 percent a year. The consumption in 2001-02 was around 25.75

million tons. Non-packaged oils account for nearly 50.0 percent of consumption in both

urban and rural markets. In the remaining 50.0 percent contributed by packaged oils,

branded oils constitute a small portion of approximately 10.0-15.0 percent.

Major Features of Edible Oil Economy

There are two major features, which have very significantly contributed to the

development of this sector. One was the setting up of the Technology Mission on

Oilseeds in 1986. This gave a thrust to Government's efforts for augmenting the

production of oilseeds. This is evident by the very impressive increase in the production

of oilseeds from about 11.3 million tons in 1986-87 to 24.8 million tons in 1998-99.

There was some setback in 1999-2000 because of the un-seasonal rain followed by

inclement weather. The production of oilseeds declined to 20.7 million tons in 1999-

2000. However, the oilseeds production went up to 27.98 million tons in 2005-06 and

was 24.29 million tons during 2006-07 oil years. As per the 3rd advance estimate by

Ministry of Agriculture dated 22.4.08 the production of nine major oilseeds is estimated

to be about 28.21 million tons during 2007-08. The other dominant feature which has had

significant impact on the present status of edible oilseeds/oil industry has been the

programmed of liberalization under which the Government's economic policy allowing

greater freedom to the open market and encourages healthy competition and self

regulation rather than protection and control. Controls and regulations have been relaxed

resulting in a highly competitive market dominated by both domestic and multinational

players.

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3 COCONUT OIL INDUSTRY

THE WIRLD SCENARIO

Globally 5.5 million tones of coconuts are produced annually. Indonesia, Philippines and

India are the top three leading producers of coconut oil, with the production share 27%,

23%, 22% respectively and thgetheraccount for the 75%of the world coconut production

3.5 million tones of coconut oil is produced annually around the world.Annually around

2lakhs tones raw copra, 1lakhstonne meal and 3.5 lakhs tones Coconut Oil is traded

world wide

THE INDIAN SCENARIO

India ranks first in the production of coconut in the world with an estimated production of

1 lakhs tones from an area of 19, 00,000 liters which is 24.5%of the world population and

15.5%of the area at the global level. The bulk of the coconut in India is in the state of

Kerala followed by Karnataka, Tamilnadua and Andria Pradesh. The crop is grown in 17

states and 3 Union territories in India. Even though India is the second largest producer of

coconut, India imports around 2000-7000 of Crude Coconut Oil

THE STATE SCENARIO

The major Coconut growing state in India is Kerala with an estimated area of 905.5

thousand metre and production of 5338.0 million nuts. The socio-economic development

of Kerala is much dependent on the fortunes of coconut crop. Coconut accounts for the

9.29% of the other total income and 26.2% of the total agricultural income of the state.

The important players in the branded oil segment being KERAFED with its brand KERA

which is the largest selling brand in Kerala, other players include KDF Nirmal, KPL

Sushi, and KKD Parisudham etc. The branded oil consumption in larger in Urban areas as

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compared to rural areas. The sale of the Branded Oil are more in districts of Eranakulam,

Trivandrum and lesser in areas like Calicut , Malappuram

In India vegetable oil is derived from four sources

The cultivated oil seeds such as ground nut, mustard, soya bean, sunflower castor

and linseed-considered as non edible

Perennial oil bearing material such as coconut and palm oil

Derived oil bearing materials such as cotton seed, rice bran

Oil seed of forest and tree origin such as sale mahua, karang, kusum etc

Coconut oil can be considered as raw material for dietary, cosmetics, pharmaceutical,

medical, energy and other industrial uses

The progress of the Indian coconut sector during the last two decades can be

classified into three distinct categories. First is the progress achieved in extending the

cultivation of the crop is more areas both in traditional and non- traditional areas? Second

is the increase in area, production and productivity of coconut in the country with the

regress in the consumption of coconut oil in both edible and non-edible sector which

warranted the need for the development of board based processing technologies for the

sustainable growth of the industry. Third is the problem of low income from the coconut

holding due to the price fluctutations, decline in the prices of coconut and its product

which necessitates the need for the development of appropriate coconut based farming

system to enhance the farm level income. The stiff import duties imposed in the edible

oils and restricted import of the coconut products played an important role in keeping the

domestic price high. Hence the structured rigidities in the coconut industry have been

keeping a hold in its performance. The industry has not able to unleash its truth potential

mainly because of its oil driven market. However by realizing the imperative need to

become competitive, the industry in now undergoing modernization, product

diversification and byproduct utilization and restricting process. Consumer demands for

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varied high value coconut products are tremendously increasing and hence the domestic

industries have become vibrant. This in turn would help in making the industry globally

competitive

Consequent to the liberalization of the Indian economy, the domestic industry has

not been catching up commensuration with the growth of other world leaders like

Philippines, Indonesia, Thailand and Silence. However, new vistas could be opened up in

value addition and products development due to the timely inventions and concerted

efforts of the organizations like Coconut Development Board, Central Plantation Crops

Research Institute, Defense Food Research Laboratory, Regional Research Laboratory,

SAU etc by development and infusion of appropriate technologies which have resulted in

value addition in coconut and emergence of variety of products in edible and non- edible

sector

The economic globalization has made possible the integration of various regional

markets into world market encompassing the entire globe within its sphere. New

coconuts products from elsewhere in the world have been found prominent place in the

product profiles of the food chain market in the country. In pursuit of making the Indian

coconut products accessible to consumers across the world, there have been significant

changes in the domestic market in terms of product development and deep market

integration. Viable processing technologies are now ingeniously available in the country

for manufacture of varied products based on coconut kernel, coconut water, husk, shell

and coconut stem. The potential of coconut palm as a source of renewable energy is also

being recognized

Now the coconut industry of India is in a convenient status. India accounts for

22.34 % of the world’s coconut production and is one of the major players in the world’s

coconut trade. Currently the crop is grown in 1.91 million hectares with an annual

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production of nearly13000 million nuts. Copra processing, coconut oil extraction and coir

manufacturing are the traditional coconut based industry in the country. The price of the

coconut in the country depended on the prevailing price of coconut oil which is

characterized by recurring violent fluctuations. The behavior of coconut oil price is

relatively depended on overall supply of oils and fats in the country. The fluctuation in

the of the coconut oil simultaneously reflects on the price of coconut. The volatile price

situation often ends in the negligence of the coconut gardens, leading to attack pests and

disease and low productivity. Of the range of ways, promoting cost effective coconut

based farming system, product diversification and value addition play a crucial role in the

stabilization of the coconut oil driven domestic market and is essential for reorienting and

engineering the Indian coconut industry cost effective and globally competitive

There has been a well defined network in the country to undertake R&D of

coconut. The State Agriculture Universities, ICAR Institutes, Agricultural/Horticulture

Department of State/Uts, organizations like NAFED, KERAFED. MARKETFED etc and

private institutions contribute to the pursuit of the research and development process of

coconut in the country

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CHAPTER -III

COMPANY PROFILE

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KERAFED is an apex body of the co-operative society involving coconut farmers of

Kerala, assisted by the Government of Kerala. It is registered under the Kerala State Co-

operative Societies Act. The primary objective of KERAFED is to organize coconut

growers by bringing them under the co- operative umbrella and to provide them with

supplies and services to augment their income base by increased productivity and value

addition, this is proposed to be achieved through an integrated system of production,

procurement, storage, processing, product diversification and marketing of coconut and

coconut products, at prices remunerative to producers and acceptable consumers

On the production enhancement side KERAFED co-ordinates and carries out

extension activities such as laying out demonstration farms, farmers training, exhibitions,

seminars, distribution of leaflets and bulletins and ensure supply of production inputs.

The specified mobile terms govern this. All the activities on production enhancement,

procurement and marketing of coconut/copra from producers are proposed to be carried

out through 900 selected Primary Agricultural Credit Co-operative Societies which form

an integral part of the activities of the federation. Education of co-operative personnel,

assistance for processing, storage and management along the strengthening of the share

capital base to augment trading capability are some of the Co-operative Development

Activities

KERAFEDs first product was KERA brand coconut oil. The federation started

commercial production in 1993. The project also envisaged the strengthening of over 900

selected primary agricultural credit societies financial and other infrastructural facilities.

Under this integrated development programmed, KERAFED has implemented two copra-

processing plants

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KEAFEDs first copra processing plant was commissioned in Adhinadu near to

Karunagapally, Kollamdistrict in April 1991 and is one of the most modern plants in

India. The plant has an installed capacity of 200 TPD and is equipped with state-of –the

art machinery to produce and bottle coconut oil of a superior quality

The KERA brand coconut oil id produced from the copra of the finest quality,

directly procured from the coconut growers in Kerala – The land of coconut, through

Primary Agricultural Credit Societies (PACS) affiliated with KERAFED. The copra thus

procured is processed using the most modern technology. In the selection and processing

of copra’s, KERAFED employs strict quality control measures to ensure product

superiority and purity. KERA is produced by using a unique two stages filtering process

to retain the original aroma and flavor of the coconut oil for a long period

KERA Brand of coconut oil is known for its quality, purity, longer shelf life and

reasonable price. Its quality is conformity with the grade specifications laid down by the

Bureau of Indian Standard vide ISO: 542-1968. Certificate of Authorization to grade

“KERA” coconut oil under AGMARK has also been obtained. ‘KERA’ is available in

HDPE bottles of 100ml, 200ml. 500ml. OET bottles 1000ml and polythene pouches of

500mland 1000ml. The raw material used for these packing’s are of virgin/food grade

approved by CFTRI, Mysore/other Government approved agencies. Secondary packing is

done using 3/5ply corrugated cartons, as per specifications

MOTTO

To get support of coconut farmers.

Distributing or providing healthy coconut oil to consumers

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VISION

To become the single largest Procurement agency of Copra and the

biggest Coconut Products manufacturing Company in India

MISSION

Being the number one producer of the best quality coconut oil. It aims at the

following areas

Business

Customer relation

Innovation

Social sector

OBJECTIVES OF KERAFED

To reduce edible oil imports

To provide an impulse effect on internal production on coconut

To provide the agricultural potential of Kerala State

To strengthen the co-operative movement

To secure the marketing of coconut and it’s by- products, thereby assuring

economic prices to the growers

To establish and manage infrastructure facilities for production and supply of

inputs and processing, manufacturing and marketing of products and by products

of coconut palm

To undertake research and development activities on production, processing and

marketing

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FARMER FRIENDLY ORGANISATION

For over 29 lakhs coconut farmers in the state, KERAFED has been a beacon although

offering them attractive support prices for coconut and copra during unfavorable market

conditions, procuring copra under the price support scheme on behalf of NAFED,

Government of India an rendering value added services to enhance their earning through

improved productivity and by assisting them in production and procurement. Apart from

these, Federation organizes periodic extension activities to help farmers, like

demonstration farms, training camps and seminars. Also KERAFED reimburses the

expenses for the establishing copra driers, through the primary agricultural co-operative

societies

OFFICERS - KERAFED HEAD OFFICE

Shri. FEBI VARGHESE Managing Director

Shri.P. NANDAKUMARAN Administrative Officer

Shri. P.J. SIVAKUMAR Manager (Extension)

Shri. A.V. BABU Manager (Finance)

Shri. A.S. MOHAMMED SHERIEF Manager

Shri. SHAMERCE PHILIP Deputy Manager (F&A)

Shri. M.Y. ELDHOSE Manager (Marketing)

18


PRODUCT PROFILE

19


KERAFED is the single largest procurer of coconut /copra produced in Kerala. A

massive daily effort undertaken at the door steps of the farmers and involving primary

agricultural Co-operative societies, spread all over the state. This direct interaction

eliminating middlemen results in the entire benefits being accrued to the farmers. And

only the very best of the raw material thus sourced goes into the making of KERA

KERA the branded oil from the KERAFED apart from being delivered in bulk also

comes to you very convenient. They are

Kera Agmark (One liter pet bottle)

Kera Popular (500 ml, 1000 ml, pouches and

5 kg, 15 kg tin

Kera gold (100 ml, 200 ml, 500 ml packets

FACILITIES FOR PROCESSING

KERAFED technology defines first anything. The oil complex at Kollam houses state of

the art facilities for extraction, processing and packing of coconut oil under extremely

hygienic conditions. After all it is the largest coconut oil mill in the sub continent with a

whopping installed capacity of 200TPD

Being the fast moving consumer good that Kera is, purity and affordability are genuine

safeguards not to be overlooking, But surely not the only ones. At Kerafed, we believe

that availability is equally important and constantly strive in that direction. An

Endeavour in which highlights like most extensive procurement channels most

modern processing facilities and a gigantic storage capacity of 2100 tones with stock

20


points at prominent cities in Kerala aid us a lot in ensuring that Kara’s availability

year round is a reality

Kerala State Civil Supplies Corporation and Consumer Federation have taken up

distribution of Ked.ra, in the public sector. Thus confirming Kera's availability to people

at large.

Additionally, in Kerala itself, we have over 5000 retail outlets selling Kera. It is all these

that makes Kerafed and Kera dictate the price of branded coconut oil and related

products in the nation

STRICT QUALITY CONTROL MEASURES

Quality specifications of a global standard are adhered to by

KERAFED stringently at all stages of production. To the extent that only Grade I

copra certified by the Bureau of Indian Standards (BIS) is set aside for aside for

processing. Kerafed's quality control laboratory meeting AGMARK parameters confirms

the purity of Kera.

Apart from meeting the marketing needs in Kerala. Tamil nadu, Karnataka etc, the

programmed to popularize the brand in cities like Newdelhi, Bangalore. Mumbai and

Kolkata are already on the roll. Kera has gone globally with export to middle east

countries.KERAFED had tie up with a leading retail chain in Dubai and Abu Dhabi for

the two brands, cooking oil KERA AND HAIR OIL Kera Kesh

21


KERAFED at a glimpse................

Integrated development of coconut and coconut products

Copra selection as per BIS parameters for processing

Most sophisticated processing facilities

Quality control laboratory with AGMARK guarantee

By far the largest coconut oil mill in India

Storage capacity of 2100 tons per day

The products of KERAFED are

Kera Agmark (One liter pet bottle)

Kera Popular (500 ml, 1000 ml, pouches and

5 kg, 15 kg tin

Kera gold (100 ml, 200 ml, 500 ml packets

Desicated coconut

Coconut cream

Coconut milk

Tender coconut water

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23


CHAPTER -IV

ORGANISATIONAL STRUCTURE

24


Organization structure is the systematic arrangement of the people working for

the organization to achieve predefined goals. The structure has two dimensions-

horizontal and vertical. The horizontal dimension indicate the department and the vertical

dimension indicate the hierarchy

Board of management elected by the members of the federation is headed by a

chairman. From those members an executive committee and a chairman are elected. The

federation has to get the approval from the board before implementing major decision

Managing Director appointed by the Government of Kerala is the sequence

authority of the federation, normally an outside person. Director (projects) is at the top of

the organization hierarchy among the employee of the organization

The department of KERAFED is

Marketing department

Finance department

Administrative department

Production department

25

AM MgrKera

Mgr KK

AM a/c

AMAudit

AM AM AMQC

Project/Plant Manager

DeputyManager

JM

AccntAccnt

JM

JM

Senr AM

JunrAM

Typst

attndr

AM AM

JM

Senr AM

JunrAM

salesman

JM

Senr AM

JunrAM

salesman

SIC

Optr /eltrn

Wrkr

SIC

Optr /eltrn

Wrkr

Anlst

Wrkr


26

General Manager

Administrative Officer

Administrative Manager

Marketing Manager

Finance Manager

AM

(MIS)

Com.prgmr

Consl oprtr

Managing director


CHAPTER-V

DEPARTMENTAL ANALYSIS

27


MARKETING DEPARTMENT

Marketing has assumed much importance in the present day business world. The success

or failure of any organization, profit making or non-profit making depends on marketing.

KERAFED has an efficient marketing strategy

KERAFED has it all-an aggressive marketing strategy, energetic sales team

with an insight into the future, tremendous confidence gained from the past and

reasonable.

Apart from meeting the market needs in Kerala, Kera has made its presence

felt in States like Madhya Pradesh, Tamil Nadu, Andhra Pradesh and Karnataka also.

FUNCTIONS

To find new market

Deciding pricing strategy

Strengthening the agency net work

Appointment of agencies

Forecasting of demand

Creating awareness

Collection of payments

Keeping relevant information and exchanging with other departmen.

The marketing manger monitors the pulse of the market, completion prevailing market,

activities of competitors, demand level etc, he analyze such situation and then takes

effective promotional activities. The assistant manager is concerned with general duties.

The sales officers and other staff in the department help to strengthen the link with

agents.

The structure of Marketing Department

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FOUR P’S IN THE MARKETING DEPARTMENT OF KERAFED

PRODUCT

Kera branded oil from KERAFED apart from being delivered in bulk also comes

to you in sizes very convinient, viz100ml, 200ml. 500ml bottles, 5kg cans and 15kg tins

29

MANAGER (KERA)

ASST.MANAGER

JUNIOR MANAGER

SENIOR ASST .MANAGER

JUNIOR ASST.MANAGER

MANAGER9KERAGA

ASST,MANAGER

SALES MAN SALES MAN

JUNIOR MANAGER

SENIOR

JUNIOR ASST.MANAGER

MARKETING MANAGER


PRICE

Mark –up pricing method is used to prepare the price of the product. 10% of profit

is added to the per unit cost of the product. From this 16%.12.5% commission is given to

suppliers and retailers

PROMOTION

Advertisement of KERAFED is mainly done through media and such type of things is

done by star communication. Main channel of communication with the customers are

MEDIA

Doordarshan

Asianet and

2. ACV

2. PRINT MEDIA

News paper

Magazines

PLACE

KERAFED product are distributed through various outlets, include both private as

well as public institutions. KERAFED is noted for its good procurement channels, better

processing facilities and for a very big storage capacity. It has its stock points in

prominent cities, which helps the organization to ensure availability of KERAFED

products to the customers. There are distributions in different areas. The direct sales in

done by the government agencies such as

KERALA STATE CIVIL SUPPLIES CORPORATION

KERALA STATE CO-OPPERATIVE CONSUMER FEDERATION

HORTICORP

CO-OPERATIVE SICIETIES

30


All this institution helps or ensures frequent flow of the KERAFED product of

consumers. With an efficient marketing strategy, the organization has able to increase

sales. Thus with good advertising, sales offers/discounts and through proper distribution

of products enabled them to achieve a very good market share.KERAFED not only

concrete in Kerala market but now is has spread his wings in the states like

Madhyapradesh, Tamilnadu,Andrapradesh and Karnataka also

COMPETTTORS

The main competitors of KERAFED in the state are KPL SHUDHI, THEJAS and

SUNFLOWEROIL etc.Parachute is the market leader in the Indian branded coconut oil

industry. The main players in the Indian market are SHALIMAR, COCO CARE, TATA

products

SALES TURN OVER

When it comes to the sales turnover of KERA brand, there was a steep increase in

sales during the early years (2001-2002), after that it declined. The average annual sales

turn over during the year 2000-01 was5687 Mts and in 2001-02 it was 7472 Mts, there

was a steady increase in the sales. But due to some technical reason the sales declined to

4218Mts during the period 2002-03. But there was slight change during the financial

year2003-04, the sales was 5076Mts.there was no change in sales during the year 2004-

05. Again the sales went down to 4768Mts in the year2005-06.again the organization

witnessed an increase of 971Mts,when compared to last year 2006-07.2007-08 was a

good year for the KERA brand, the sales declined to 7359 Mts.in the year 2008-09 there

was a increase in sales to 9882Mt. In the current year 2009-10(include only 9 months) the

sale was 7784Mts

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The federation has done several activities to increase the sales in the upcoming year. The

activities include

Appointment of permanent staff instead of contract employees

Converted mobile team offices into field offices

COCONUT OIL SALES (MT)

YEAR 2005-06 2006-07 2007-08 2008-09 2009-10 2010-

2011(up to

Dec 31)

OIL

SOLD

4768 5655 7359 9882 10310 10202

2005-06 2006-07 2007-08 2008-09 2009-10 2010-20110

2000

4000

6000

8000

10000

12000

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SALES

KERA from KERAFED continues to play a dominate role as cooking oil in the Kerala

market. Between 400-600 tones of kera coconut cooking oil was sold in Kerala

The zone was sales (MT)-2009-10(9months)

Sales

southcentralnorth

33

South zone 4595

Central zone 1285

North zone 1904

total 7784


TURN OVER (Rs...Lakhs)

2005-06 2006-07 2007-08 2008-09 2009-10 2010-20110

5000

10000

15000

20000

25000

34

2005-06 3726

2006-07 4790

2007-08 6448

2008-09 8005

2009-10 19160

2010-11(up to 31 Dec 2010) 11347


FINANCE DEPARTMENT

FINANACE is the life blood of any business operation. A well planned finance

department is the strength of a good business enterprise. The finance department is

responsible for managing the firm’s financial assets such as cash, stocksb and other

investment in order to maximize the return of those financial assets. The head of the

finance department is the finance manager. A finance manager is a person who is

responsible in a significant way to carry out the finance functions. It should be noted at

the outset that in a modern enterprise the finance manager occupies a key position. The

financial manager is also responsible for shaping the fortunes of the enterprise and is

involved in the most vital decisions of the allocation of the capital

The main sources of funds of KERAFED are

Share capital contribution of Government of Kerala

Share capital contribution by co-operative institutions

Loans from NCDC, co-operative banks and Government of Kerala

Grants and subsidies

These funds are employed for the procurement of copra, marketing expenses and

administrative expenses

Annual report, prepared by the accounts section and audited by the external auditor is

submitted to the Register of Co-operative societies

Division of KERAFED

Bill section

Internal audit section

Cash section

35


Bill section

After collecting the details of attendance of various departments,branches, offices,

plants by considering the information and statutory deductions,loans etc the salary bills

are prepared, this section also deals with TA bills,medical bills, vechicle expenses etc

Internal audit section

This section is responsible for preparing financial accounts periodically. All

kinds of cross checking is done in this section. Bank reconciliation,account verification is

done at this section

Cash section

Salaries and wages of the employee are prepared in this section, all payments either in

cash or cheque are carried out in this section. Other major function includes procurement

and allocation of funds

The structure of finance department

36


FUNCTION OF THE FINANACE DEPARTMENT

1. Monitoring the operations

2. Preparation of annual financial statement and reporting to the management

3. Custody and safeguarding of the assets, securities, and the valuables

4. Auditing

Internal auditing

Statutory auditing

Government auditing

5. Maintainance of inflow and outflow of cash

The various department working with the finance departments are:

Budgeting

Commercial accounts

Bill passing

Establishment

Cash

37

FINANCE MANAGER

DEPUTY MANAGER

A.M (A/C)

JUNIOR MANAGER

ACCOUNTANT

AM. (AUDIT)

JUNIOR MANAGER

ACCOUNTANT

CASHIER CASHIER


Works

Budgeting is one of the vital activities undertaken by this department. The budgeting

process involves prediction of the future sales and the presence of the estimates based on

that sales. Data such as future sales are provided by the marketing department on the

basis of the past sales details and current market conditions. The future production, labor,

cash and other resources requirement are detailed in the Budget. Thus budgeting is an

important task and no margin error is expected in this activity

The process of internal auditing is conducted by the Co-operative wing. Auditor

assisted by the finance department and the Statutory Audit by the Professional Chartered

Accountant. The finance department of the KERAFED conducts inspection of the

concerned transactions details of the primary co-operative Societies

The salary of an employee consists of basis pay, increment, dearness allowance,

city compensation allowances which is paid monthly to employee. The payroll will be

prepared one day before disbursement, enabling the employee to see different allocations

before he accepts the salary. The mode of payment is made through bank or cash counters

according to the employee wish. The cash section deals with the payment and receipt of

cash. The payment exceeding Rs20000 will be in cheques. Finance department maintains

a full record of all activities in computers. Consolidated records of accounts are made

using computers

38


ADMINISTRATIVE DEPARTMENT

In KERAFED Administrative department is responsible for general as

well as personnel administration. Administrative officer is the head of the

department .KERAFED administrative department is just like the H.R department

commonly seen in other organization

Functions of the Administrative department include

Personnel function and general administration

Keeping records of the personnel

Recruitment of labour,selection and placement

Providing canteen services,ESI,provident funds, accidental benefits etc

Safety inspection and control

Analyzing the work of the employee

To maintain public relation as well as employer, employee relations within the

organization

To provide better work atmosphere to the employee

To maintain work satisfaction

39


Providing training to the employee

Employee profile

category Number of employee

Permanent employee 230

Deputation 1

Contract 6

Daily wages 2

Employee are recruited through

The Kerala State Public Service Commission

By deputation from other department

Through direct recruitment by the board

On contract basis

Adequate computer training and training in office management is also given to the

workers and staff. They also conduct various training programmes for its staff and

workers

The employee compensation structure include

Basic salary

House rent allowances

Dearness allowances

City compensation allowances

Special allowances

40


In KERAFED medical reimbursement scheme is also available for to workers,

they are also giving gratuity in collaboration with LIC. Bonus of 20% during

prosperity and one day leave as compensation is also given to the workers and

staffs

The structure of the Administrative Department

Trade unions

Trade unions are voluntary organization of employee or employers formed to protect and

promote their interest through collective action, their activities is felt in all activities of an

organization

In KERAFED there are two trade unions for employee

41

Administrative manager

Asst.manager (MIS)

Computer programmer

Console operator

Asst.manager

Junior manager

Senior asst. manager

Typist

Attender

Junior asst.manager


1. Kerafed staff association

2. Kerafed employees organization

Time office

Time office comes under Administrative department. Time office is considered as

the “soul of the administrative department”. The head time keeper is the head of the time

office. The function of the time office is to maintain the records relating to the attendance

of the workers. their wages, leave matters etc. All the administrative details are

maintained in the time office right from the recruitment to the retirement of the

employment of the employee. That means all personnel registers and the services

Register are maintained in the time office

Transfer

A staff member who has put more than 3 years of service at a particular post may

only be considered for the transfer to any department on a post on the same grade in the

normal circumstances

Working hours

The production Unit requires 24 hours continuous working. These working hours are

divided into three shifts. Each shift consists of 8 hours. The working hours for office staff

is from 9.30 to 5pm with half an hour interval from 1pm to 1.30pm

Welfare measures

The workers of KERAFED gets leave on the first day of the week

Canteen facilities are arranged by KERAFED for the welfare of the workers and

staffs

In the production unit , double and single clearness allowance is given as

compensation for working overtime and the amount is paid daily or weekly

42


The workers of KERAFED do not work more than 48 hours in a week in the

production plant

The organization gives half an hour interval to the workers. Women workers are

not allowed to work during the night hours in the factory

KERAFED gives more importance to its employees for their safety measures; the

workers in the production plant are given safety dresses, glouses, shoes etc...

Suspension

Suspension may be imposed on the workmen as a punishment for misconduct,

pending enquiry for misconduct or when the criminal proceedings are per sued by a Court

of Law, if the management deems it necessary

Secrecy

No workmen shall be writing to any person or by any means of communication

newspapers, journals etc... Or any document relating to the company except with the

prior approval in writing to the management

I.T. Department

The I.T department of KERAFED provides information technology support to all plants

and units. It helps in development and maintenance of software applications like EIMIS

Some of the major facilities provided by the operating systems, which are used in

KERAFED are

43


Easy interaction between the human and computers

Starting computer automatically when power is on

Loading and scheduling user’s program along with necessary

Controlling program execution

Scheduling processes

Managing and manipulating files

Providing security to user’s jobs and files

Accounting resources usage

The network connection such as LAN for connecting every department of KERAFED

office and WAN connecting all factories and offices.KERAFED website provide

information for the public

KERAFED has its own e-mail address [email protected] and owns a

website www. Kerafed .com. the e-mail is the official channel for communication and

helps the Head office to give instructions and get the feedback quickly for faster decision

making

44


PRODUCTION PLANT

The production department function of KERAFED is to manage the production and to

produce product according to the demand. Production department undertakes the process

of transformation of copra into oil and oil cake. A series of processing is used to convert

copra into oil. The machine and equipment in KERAFED is installed in straight line

basis. The capacity of the plant is 200MTPD (Metric Tons per Day)

The raw material copra is send to the plant by carriage. when it enters the factory

gate it is send to the weight bridge for checking the weight and then it is send to the

godown and unloaded. The quality department reaches there and does the physical

inspection, takes samples of copra to test whether the copra is rubbery of fungus affected

and also test the moisture content of copra. Based on the standard prescribed by

KERAFED, if all things are right then it is accepted for processing

The production department has three divisions

Storage division

Manufacturing process

Packing and filling unit

Copra procurement by KERAFED

YEAR Qty in tonnes

45


2005-06 76712006-07 95022007-08 108902008-09 163792009-10 149952010-11(up to Dec 2010) 16124

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11( up to Dec 2010)

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Series 1

Storage Division

The storage capacity of Go down is 6000tonnes. The gigantic size of the go down is not

proportion with the amount of copra procured. Thus almost 50% of go down capacity is

unutilized. The storage division follows FIFO method of issuing for processing

The pones and cons due to this method are

46


The copra that comes first goes out first. Thus no accumulation of cold stock is

allowed and thereby no wastage as a result of decay or low quality

The effect of current market price is not at all considered in FIFO method

because the stock assed now may have been purchased at a very early time with

different market price and so it wii be difficult to fix the sales price

The go down section is headed by an officer in charge whose office is situated inside the

go down. He maintains the record pertaining the intake of copra and also transfers copra

to the manufacturing division. Copra to be transferred to the manufacturing division is

done through conveyors whose base starts from within the go down. There are nearly 100

temporary loading and unloading workers at the production plant

Manufacturing division

The manufacturing unit is headed by a technical officer whose cabin is

situated within the manufacturing unit. The production plan of the unit depends on the

demand of the product. It depends or varies on the festival seasons. More products are

required during the festival season especially during “Oman”. There are mainly three

shifts in the factory. The manpower required to run the unit per shift is 16

Fire Extinguisher, Gas masks Safety belts and First Aid box etc are provided to ensure

the safety of employee

The machines that are operated

1) Conveyor systems used for copra loading

2) Copra cutting cutter for slicing copra

3) Boiler system for heating copra

4) Expellers for copra crushing

5) Filters for oil filtering

47


6) Tanks for oil storage

7) Packaging

The entire process and machinery in the manufacturing division is automated and thus

requires minimum labor. The modern equipment in the unit ensures smooth flow of work

as well as contributes to the overall quality of the final product. As the machines are laid

on straight line basis, any error in anyone unit except the expeller can cause a temporary

halt or delay in the work

PRODUCTION PROCESS CHART

COPRA

GODOWN

CLEANER CUTTER CRUSHING UNIT

OIL EXPELLER (stage 1)

OIL TANK

OIL EXPELLER (stage2)

OIL CAKE

Extraction of copra

Oil content-64%

48


Oilcake-32%

Loss- 4%

PRODUCTION OF COCONUT OIL(MT)

2005-06 2006-07 2007-08 2008-09 2009-10(9MONTHS)

Karunagapally

3229 3618 4656 6330 5750

Naduvanoor 1847 2359 2422 3277 2281TOTAL 5076 5977 7078 9607 8031

Packing and filling unit

The oil complex at karunagapally houses state of the art facilities for extraction,

processing and packing of coconut oil under extremely hygienic conditions. Packing and

filling unit is highly mechanized and here oil is usually packed in different packs i.e.

from 6ml sachets to 15kg tins. As per the demand the packing division takes oil from the

storage tanks and uses it for filling into sachets, pouches and bottles

49

2005-06 2006-07 2007-08 2008-09 2009-100

2000

4000

6000

8000

10000

12000

3229 36184656

6330 5750

18472359

2422

3277

2281

Series 3Series 2


Strict quality specifications are followed in terms of material used as packing material.

The raw materials used for these packing are virgin/food grade approved by CFTRI,

Mysore/other Government approved agencies. Secondary packing is done using 3/5 ply

corrugated cartoons, as per specifications

This section is headed by a separate officer, shift in charge whose cabin is located inside

the packing unit. Due to this lay out the officer can have a complete view of the unit and

effective control over the unit? Manpower required per shift is 37.

Bottling filing line in the plant can automatically fill and seal bottles. There

is also a sachet machine which fills oil in 6ml sachets. The role of manual labors in this

unit is limited

Quality check process in this unit is undertaken two levels, increase of the

oil quality and also the quality of the packing material. Before any oil is used for packing

the Quality Control lab technically checks that the oil on the basis of specified guidelines

due approved, the process of packing is undertaken. The price of the product varies

frequently and on that basis the machine is adjusted to print the existing price.

Quality control department

Quality specifications of a global standard are adhered to by KERAFED stringently at all

stages of production. To the extent that only grade 1 copra certified by bureau of Indian

Standard (BIS) is set aside for processing. KERAFED quality control laboratory meeting

AGMARK parameters confirms the purity of Kera

Every load arrived at Gideon is subjected to subjected to quality tests, to detect inferior

types of copra. Inferior types of copra are generally

A. Mould effected

B. Immature or rubbery copra made from immature nuts

C. Insect attacked copra

50


D. Discolored copra

In order to ensure quality, an initially random sampling technique is used. Random

sample is drawn for its moisture test at the laboratory

Departmental hierarchical of Quality Control department

The oil extracted is subjected to the following tests

Acid value test Moisture test Color test Unsaponification method Overall strcture of production plant

51

Quality control manager

Assistant manager

Analyst

Worker

PLANT MANAGER

ASST.MANAGER ASST.MANAGER

SIC

QUALITY MANAGER

ASST.MANAGER


CHAPTER -VI

SWOT ANALYSIS

52

SIC

OPERATOR

WORKER

ANALYST

WORKER


WHAT IS SWOT?

This is a method or model to analyze the competitive position of a company.

SWOT analysis uses SWOT matrix to access both internal and external aspects of a doing

a business. This is basically a tool for auditing an organization and its environment

It is the first stage of planning and helps decision makers to focus on key issues.

Each letter in the word SWOT represents one strong word

S- STRENGTH

W- WEAKNESS

O- OPPORTUNITIES

T- THREAT

Strength and weakness in SWOT are internal factors; opportunities and threat are external

factors

SWOT Matrix

STRENGTH WEAKNESS

53


OPPORTUNITY

THREAT

SO strategy-company is in safe position. Pursue opportunities that are good fit to the company’s strength

WO strategy- in this stage company can overcome its weakness by making use of opportunity

ST strategy-in this stage company should identify ways by which it could use its strength

and reduce its vulnerability to external threats

WT strategy- Company is in poor form. It should establish some defensive plan to

prevent the firm’s weakness from making it highly susceptible to external threats

SWOT analysis on KERAFED

STRENGTH:

1) KERAFED’s product has a very strong brand image

2) KERAFED has a strong network

3) It has adequate production capacity

4) KERAFED has adequate support from various agencies and institutions like

NAFED etc

5) Good relationship among the employee and the workers

6) Follows very strict quality measures

WEAKNESS

1) The market expansion to Northern India is less due to less usage of coconut oil by

the people in that region

54

SO strategy WO strategy

ST strategy WT strategy


2) Seasonal variations badly affect the procurement of coconut/copra

3) Policy formulation and decision making is affected by Government interface and

thus results in delay of decision making and execution

4) Capacity utilization in only 35%were production is done on the basis of

requirement as per sales

OPPORTUNITY

1. Product diversification is possible

2. Through an effective advertisement and sales promotion activities,KERAFED can

expand its product to other parts of southern states at an higher rate when

compared to northern states

3. Better scope for the product in the rural market, as consumption of oil is greater

among the people in the rural areas

4. When compare to other company’s KERAFED has got a wide range of network

for the procurement of raw material and marketing other products

THREATS

1. Other oils such as sunflower ,palm oil and other branded coconut oil etc is a threat

to the company’s product

2. There are argument against using of coconut oil ,which increase various disease

55


MICHAEL PORTERS’S FIVE FORCE

MODEL

56


PORTER’S FIVE FORCE MODEL AND ITS USE

This model of competitive forces was developed by Michael.E. Porter in 1980.

Since that time the model has become an important tool for analyzing an organizations

industry structure in strategic processes. It is based on the insight that corporate strategy

should meet the opportunities and threats in the organization external environment

Porter identified five competitive forces that stage every industry and every

market. These forces determine the intensity of completion and hence the profitability

and attractiveness of an industry. The objective of corporate strategy should be to modify

these competitive forces in a way that improves the position of the organization. Porters

model support the analysis of the driving forces in an industry. Based on the information

derived from five force analysis management can decide how to influence or to exploit

particular characteristics of their industry

FIVE FORCE MODEL

According to porter the nature of competitiveness in a given industry can be viewed as a

composite of five forces

1) Rivalry among competitive firms

2) Potential entry of new competitors

57


3) Potential development of substitute products

4) Bargaining power of suppliers

5) Bargaining power of consumers

Competitive Rivalry

These forces describe the intensity of completion between players in an industry. High

competitive pressure results in pressure on prices, margins and hence affects profitability

of every single company in the industry. Competition is high when there are many

58

Competitive rivalry with in the industry Bargaining power of

customersBargaining power of buyers

Threat of new entrants

Threat of substitute


players of about same size, when players have similar strategies, there is not much

differentiation between players and their products


When the competition in an industry is higher it is easier for other companies to enter the

industry. Power is also affected by the ability of people to enter your market. If its cost

little in time or5 money to enter your market and compete effectively, or if you have little

protection for your key technologies the new competitors can quickly enter your market

and weaken your position. In such situation, the new entrants could change the major

determinates of market environment like market share, price and customer loyalty. This

threat depends on the extent to which there are barriers to entry. This include high initial

investment and fixed cost, brand loyalityof customers, distribution channels are

controlled by existing players, high switching cost

Threat of substitute

Thread from substitute exists if there are alternative products with lower price of better

performance parameters for the same purpose. They could easily attract a significant

portion of the market volume and hence reduce potential sales volume of existing players.

The threat of substitute is determined by factors like band loyalty, close customer

relationship, switching cost etc...

Supplier power

The term suppliers comprise of all sources for inputs that are needed in order to provide

goods and services. Suppliers bargaining power is likely to be high when a market is

dominated by a few large suppliers rather than a fragmented source of supply, there are

no substitutes for particular inputs, the switching cost from one supplier to another is high

Buyer power

It determines how much customers can impose pressure on margins and volumes. It is

likely to be high when they buy large volumes, product is undifferentiated and can be

59


replaced by substitute, switching to an alternative product is relatively simple and it does

not involve high costs

PORTER’S FIVE FORCE MODEL ANALYSIS ON KERAFED

Bargaining power of suppliers

The raw materials needed for the production of oil are not available as per the

demand. There are no alternate raw materials available. This makes the bargaining power

of the raw material suppliers stronger.

The raw material is of atmost importance, without which production will not take

place. It would be a huge loss for the company in case the production process has to be

stopped even for a small period of time. The process has to be continuous and a constant

supply of raw material is required.


Huge initial capital is required to establish an oil production company. It proves to

be a barrier to the entry. Imported oils such as Palm oil, is relatively cheaper giving them

an edge at times with few cost.

Bargaining power of customers

The quality of the raw material decides the quality of the finished goods. For this

reason the customers try to purchase good quality raw materials at the quoted price so

that quality is not compromised. A lot of suppliers mix low quality raw material and sell

the same at very cheap rate.

60


The numbers of raw material suppliers are high. Oil producing companies are on

the rise globally. This has created a huge demand for the raw material and thus

strengthens the bargaining power of the customers

To maintain the operating cycle it becomes necessary that a sufficient inventory

of raw materials is always available. Therefore, to avoid shortage of raw materials

manufactures tend to buy the material required giving importance to time rather than

price.

Industry of competitive rivalry

The entry of other players in this field would increase the competition by leaps

and bounds. Cheaper imports from other countries are causing stiff competition in the

market, though their products are of inferior quality. The number of competitors is

relatively high.

Threat of Substitutes

There are a number of substitutes for Kera such as traditional coconut oil, KPL Shudhi, sunflower oil, Thejas etc. Therefore the customers may easily switch from one product to another.

61


PESTLE ANALYSIS

62


WHAT IS PESTLE?

PESTLE analysis stand for Political, Economic, Social, Technological, Legal

environment analysis and it describes a framework of macro-environment factors used in

the environment scanning component of strategic management. This analysis gives an

overview of the different macro environment factors that the company has to take into

consideration. It is useful tool for understanding market growth or decline, business

position, potential and direction for operation

POLITICAL FACTORS

Political factors include how and to what degree a government intervenes in the

economy. Specifically, political factors include areas such as tax policy,labour law,

environment law, trade restictions.tariffs and political factors may also include goods and

services which the government wants to provide or be provided (merit goods) and those

that the government does not want to be provided (demerit goods or merit bad).

63


Furthermore, governments have great influence on the health, education and

infrastructure of a nation

ECONOMIC FACTORS

Economic factors include economic growth, interest rates, exchange rates and the

inflation rate. These factors have major impacts on how businesses operate and make

decisions. For example, interst rates affect a firm’s cost of capital and therefore to what

extent a business grows expands. Exchange rate affects the cost of exporting goods and

the supply and price of imported goods in an economy

SOCIAL FACTOR

Social factors include the cultural aspects and include health consciousness, population

growth rate, age distribution, career attitudes and emphasis on safety, trends in social

factors affect the demand for a company’s products and how that company operates. For

example, an ageing population may imply a smaller and less –willing work force (thus

increasing the cost of labor). Furthermore, companies may change various management

strategies to adapt to these social trends (such as recruiting older workers)

TECHNOLOGICAL FACTORS

Technological factors include ecological and environment aspect such as R&D activity,

automation, technology incentives and the rate of technological change. They can

determine barriers to entry, minimum efficient production level and influence

outsourcing decisions. Furthermore, technological shifts can affect costs, quality and lead

to innovation

LEGAL FACTORS

64


Legal factors include discrimination law, consumer law, antitrust law, employment law

and health and safety law. These factors can affect how a company operates, its costs, and

the demand for its products

ENVIRONMENTAL FACTORS

Environmental factors include weather, climate and climate change which may

especially affect industries such as tourism, farming and insurance. Furthermore, growing

awareness to climate change is affecting how companies operate and the products they

offer it is both creating new markets and diminishing or destroying existing ones

APPLYING PESTLE ON KERAFED

Political

The political support has helped the company to withstand during the time when

they struggled to survive. Some assistance in funding money for new project is on the

card. Even other helps like support in procuring raw material is also there.

Economical

Price of oil depends on the price of copra, i.e. when the price of copra is high oil

price increases and when it is low the oil price decreases. Economic factors like changes

in tax rate will affect our business as we are competing with global players. Government

funds and loans will also help the organization to carryout its functions. Exchange rates

will also affect ort export business.

Sociological

Business is not much affected by sociological factors. Changes in the lifestyle will not directly affect the use of oil.

Technological

65


Technological changes have effects in the business. Modifications in packing and atomization of various processes are adding value but the new technological advancement by our competitors are always creating mess for us. Technological advancements in marketing like electronic media is also adding value to us. The investments in technological developments like research are comparatively low.

Legal

legislation in areas such as employment, competition, health and safety

changes in trading policies of India as well as other nations will affect our

business

changes in foreign trade policies , changes in various rates may affect our

business

regulation of each country are varying from time to time and acting accordingly

for export orders

Environmental

Environmental factors include weather, climate and climate changes which may

especially affect our business. The procurement of copra depends upon the weather and

the climatic conditions. Thus the environmental factor closely related to the production of

coconut oil

66


CHAPTER-VII

FINDING, SUGGESTION AND

CONCLUSION

67


FINDINGS

KERAFED is the leader in the coconut oil production in south India

KERAFED products are used as raw material for ayurvedic products

Rural areas people prefer KERAFED products

The federation procures coconut as per the demand

Absenteeism in the employee

No proper advertising is given for the products, which badly affect the sales

Under utilization of the resources badly affect production process in the plant

The inadequate supply of copra adversely affects the function of the federation

There is no proper training is given to the employees

Federation facing stiff competition in the market

68


The production is increasing year by year and sales are quick without long time

storage

SUGGESTION

The federation should start measures to get the ISO certification

Give more attention to export market

Professionalism in managing resources

The marketing effort should be increased especially in advertisment and sales

Cost of procurement of copra can be reduced by taking into consideration nearby

institutions that are already to provide raw material

Maximun utalization of computer with updated website facility helps to avoid

duplication of work and reduce wastage

Strict schedule of work should be maintained to avoid absenteeism

The office at Kolkata and Bombay should be re-opened by appointing local

employee, which help the firm ti strectch its wings to Northern parts of the

country

CONCLUSION

The project organization study which was undertaken at KERAFED helped me to

understand in detail the history of the organization,their hierarchy,various department

and their functions. More over it gave me a practical exposure to an organisation

KERAFED is the largest procurer of coconut in Kerala,undertaking massive efforts at

the doorsteps to farmers and involving Agricultural Credit Societied spread all over

the state. Its product “KERA” is noted for its finest quality,millions of people are

69


pround to patronize the :KERA” brand. KERAFED has got very good dedicated

workers who act as the main pillar of the federation. Certain drwaback in

management still pertains, hope that they take necessary actions to cleat that and there

by taling KERAFED into new heights

70


ABREVATIONS

a/c Accounts

Acont accountant

ACV Asianet Cable vision

A.M ASSISTANT MANAGER

Anlst Analyst

attndr attender

Com.prgm Computer programmer

Cosl optr Console operator

eltrn electrician

JM Junior Manager

kk Keragem kesamrutham

71


LAN Local area network

MGR manager

MIS Management informantion system

MT Metric tonnes

optr operator

PACS Primary agricultural co-operative socieeties

Qc Quality control

Qty quantity

Rs Rupees

SIC Shift in charge

Senr A M Senior manager

SWOT Strength Weakness Opportunity Threat

wrkr worker

72


BIBILIOGRAPHY

73


Company brochures

KERFED annual report 2009

Websites

http://www.kerafed.com

http://www.hindunewsonline.com

http;//www.icfai.com

http://www.kerala .gov.in/dept_coop/cooperation

74


APPENDIX

75


KERALA KERA KARSHAKA SAHAKARANA FEDERATION LTD NO. 4370

Balance shhet as at 31.03.2009

(subject to Audit)

As on 31.03.2009 As on 31.03.2009

Main Total Subhead total Capital & Liabilities

Subhead total Main Total

Share capital

275585000.00 Government of Kerala /NCDC

275585000.00

287820000.00 122235000.00 Co-operative Societies

122235000.00 287820000.00

258797800.00 NCDC 258797800.00

76


258797800.00 0.00 Market study 0.00 258797800.00

237453827.31 237453827.31 Funds Reserves & provisions

242793644.13 242793644.13

23671520.74 23671520.74 Grant and subsudy

21673062.74 21673062.74

1796000000.00 1796000000.00 Share capital assistance to PACS

1796000000.00 1796000000.00

Current liability

1340067.10 Establishmnet and contigencies payable

941083.55

343621629.00 Interest on long term loan

367560426.00

345505926.30 544230.20 Other current liability

586164.20 369087673.75

42527180.41 42527180.41 Due by the Federation

44802498.66 44802498.66

1375376254.76 Total 1404576479.28

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78

kerafed os

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