kerala solvent extraction (kse)

OBJECTIVES OF THE STUDY

1) To get an idea about the organization.

2) To familiarize with different management activities.

3) To get an idea about the authority structure and effectiveness of various

departments

4) To analyze the strengths, weaknesses, opportunities and threats of the

Company.

5) To fulfill the requirement of the curriculum.

6) To study the functional aspects of the departments of KSE LIMITED.

Placement Training Report University of Calicut 1

INTRODUCTION


INTRODUCTION

Kerala Solvent Extraction was registered as a

public limited company on 25th September; 1963.The Company was later

renamed as KSE Ltd and listed in the stock exchanges of Mumbai, Chennai and

Kochi. KSE, a Company having an annual turnover of RS 187 crores, is the

largest manufacturer of cattle feed.

It is marketing annually about 1.8 lakh tones of superior quality cattle feed

KSE is in the oil extraction Industry for the past 31 years

The Company has secured the National Productivity Award for the year 2001-

2002 for being first in terms of production efficiency in the animal feed sector.

This is the sixth time in a row that the Company is being selected for this most

coveted award.

KSE, with a capital base of Rs.36Crores embarks on an expansion to double its

Solvent Extraction capacity and add a most modern eco friendly vegetable

refining plant.


INDUSTRYPROFILE


INDUSTRY PROFILE

The solvent industry has achieved a phenomenal progress and at present there

are 520 units having overall oil cake or oil seed processing capacity of more than

24.6 million tones/year, which included rice bran processing capacity of more

than 9.9 million/year. The solvent extraction plays important role in the oil

economy. Solvent extraction in India was started in 1945.It had to struggle for

more than 20 years to establish itself.

Crisis of coconut industries in Kerala in 1960`s In the 1960`s there was a crisis in coconut oil extraction

industry in Kerala. After conversion from wooden ghani`s to rotaries the cost of

the production had increased considerably. By using this new method, they were

able to extract more oil from the coconut cake. Earlier 20% of oil was retained in

the coconut cake, now it has reduced to 12%

Although Kerala produces 80% of total copra produced in the

country, large part of it was sold to other states as copra itself and they were

earning good profit when mills in Kerala wasn’t able to get enough copra for

their daily needs. When oil industry in other parts of the country was thriving, in

Kerala it was struggling. So they understood the need for modernization of their

mills. At that time Dr.P.S.Loknathan committee setup to study the feasibility of


starting new industries in Kerala, recommended of establishment of 3 solvent

extraction plant in Kerala and it was also proposed that one should be located in

Thrissur itself.

Coconut oil miller’s co-operative society

Lion share of copra went to mills in Bombay and they were able to generate

good profits. To overcome this situation a co-operative society was formed by

name coconut oil miller’s co-operative society and it was decided that this society

would act as an agent of state trading corporation for distribution of copra.

By the seeing the performance of the Bombay group

an investigation department was assigned to investigate it. Then they found

out that they were using expeller mills for extracting oil and was able to

reduce the oil content up to 6%. The industries in Kerala later began to follow

it.


COMPANYPROFILE


COMPANY PROFILE

THREE DECADES OF QUALITY

It was in 1963 Kerala Solvent Extraction Limited now

known as KSE Ltd. entered the solvent extraction industry, setting up the very

first solvent extraction plant in Kerala.

The traditional coconut oil industry in the State was facing a decline then.

Though the largest producer of copra in the country. As much as 80% of it,

Kerala lacked the infrastructure to exploit the potential of its abundant produce.

While the oil industry in other parts of the country was thriving, in Kerala it was

struggling. The Dr. P.S Lokanathan Committee, set up to study the feasibility of

starting new industries in Kerala, recommended the establishment of three

solvent extraction plants. And one of them, in Thrissur district. The oil mill

owners in and around Irinjalakuda, who where thinking in similar lines saw the

opportunity and took the initiative to establish a solvent extraction unit. Thus was

KSE born.

On the road to success, there were many hurdles.

Initially, the mobilization of capital posed the greatest challenge. The future

looked grim. But determination and optimism paid off. The solvent extraction

plant went on stream in 1972 and in 1976 a new plant was set up to manufacture

ready mixed cattle feed, which was pioneering step. Since then there was no

Looking back.


The last three decades have seen KSE emerging as the leader in solvent

extraction and ready mixed cattle feed in the country. And through these years of

consolidation and diversification, KSE has created a niche for itself.

Today KSE commands the resources, expertise and

infrastructure to manufacture a range of live stock feed, in high volumes, coconut

oil from coconut oil cake, and refined edible oil. Driven by a commitment to high

standards of quality, KSE has not only won customer confidence but also

national recognition through several awards and accolades.

KSE had computerized its operations way back. In the year

1999, KSE went on to upgrade its EDP setup further. A custom made ERP

software was developed for its units and head office through M/s.R.R.Software

Pvt Ltd, Cochin and Online computerization was fully implemented at all its

plants. Being custom made for KSE this ERP software, with SQL RDBMS, front

end on Visual Basic and Windows NT OS, seamlessly had integrated all

functions of the organization viz FA, Inventory, Billing, Payroll, PPC, MIS,

Share Accounting etc.

The Head office at Iringalakuda has 2 Servers and 40 Nodes running the

application. Other units, in all, have about 8 Servers and about 50 Nodes. Their

latest plant at Vedagiri, Kottayam has a computerized control room for

monitoring, homogenization, size reduction, batching, pelletisation, pellet cooling

and aspiring systems.


From a single unit, solvent extraction plant, KSE has

grown into a multi-unit, multi-product organization. Infrastructure for growth has

always been viewed as a priority at KSE. With modern manufacturing facilities

spread over three states, KSE caters to a vast belt stretching across Southern

India.

With a strong commitment to customers and product

quality and being cost competitive, KSE stands poised to meet new challenges.


GROWTH CHRONICLE

1972

Solvent plant commences operation

1976

Mixed cattle feed production begins

1987

Cattle feed production reaches 180 tonnes & Introduction of computers in the

factory and office

1988

A new mixed cattle feed plant starts operation at Swaminathapuram, in

Tamil Nadu with a daily production capacity of 180 tonnes

1989

A solvent unit with a capacity of 120 tonnes per day commences operation at the

Tamil Nadu plant

1990

Introduction of KS Supreme Pellets, a bypass protein cattle feed in the market

1991

Opens its Palghat branch

1992

Cattle feed manufacturing begins in third party units

1993

Enters export market


1994

Introduction of feed supplement KS Forte

Public issue and listing of shares

1995

Vegetable oil refining plant commissioned

KS Supreme - Sunflower Refined Oil launched

Calicut branch opens

1996

240 TPD cattle feed commences at Vedagiri, Kottayam Dist., Kerala

1997

Company renamed as KSE Ltd.

1998

Fourth feed production unit at Palghat

Launches Dairy project

1999

A modern Children’s' Park and Information Center have been completed at

Irinjalakuda for the benefit of the public.

Company introduces KS Deluxe Plus the new pellet feed in HDPE bags for

Kerala market.

2000

Company starts production and distribution of milk and milk products from

Konikkara and Thalaysthu Dairy Units


PRODUCTION UNITS

KERALA

1) KSE LIMITED

IRINJALAKUDA UNIT

2) KSE LIMITED

VEDAGIRI UNIT

3) KSE LIMITED

PALAKKAD UNIT

4) KSE LIMITED

EDAYAR UNIT, KOCHI.

5) KSE LIMITED

KONIKKARA (DAIRY UNIT)

TAMIL NADU

1) KSE LIMITED

SWAMINATHAPURAM UNIT

2) KSE LIMITED

THALAYATH (DAIRY)

3) KSE LIMITED

MODAKURICHI, ERODE

KARNATAKA

1) KSE LIMITED

MYSORE UNIT


AWARDS AND RECOGNITION

Kerala's first solvent extraction plant

No: 1 in processing coconut oil cake through solvent extraction in India

Winner of S.E.A. National Awards and State Productivity and Safety

Awards continuously for 14 years including the current year

Front-ranker in mixed cattle feed production in India

Recognition from Animal Nutrition Society for contributions in cattle feed

Manufacturing

Kerala's first export mixed cattle feed

Tamilnadu productivity council safety award

Kerala state productivity council award


BOARD OF DIRECTORS

CHAIRMAN AND MANAGING DIRECTOR

M.C.PAUL

EXECUTIVE DIRECTOR

T.O PAUL

WHOLE- TIME DIRECTOR

P.K. VARGHESE

DIRECTOR AND LEGAL ADVISER

A.P.GEORGE

DIRECTORS

K.P.JOHN

T.C.MATHEW

P.D.ANTO

Dr. K.C.VIJAYARAGHAVAN

JOHN FRANCIS K.

T.R. RAGULAL

CHIEF GENERAL MANAGER

ANAND MENON.

SECRETARY-CUM-CHIEFFINANCE MANAGER

R.SANKARANARAYANAN


VISION

We shall endeavor to maintain leadership through

quality products, explore new avenues in product

development and marketing, create a stronger bond

between the management, work force, dealers and

customers, contribute to social development and

rural upliftment, and constantly strive for

excellence in all spheres of our activities


PRODUCT PROFILE


PRODUCT PROFILE

The main products marketed are

1) K.S CATTLE FEED It includes six types. They are: -

A) K.S – MASH

B) K.S SPECIAL—MASH

C) K.S SUPER –MASH

D) K.S DELUX PELLETS

E) K.S DELUX PLUS PELLETS

F) K.S SUPREME PELLETS

2) KS SUPREME (Refined sunflower expeller oil)

3) KEYES FORTE

4) MILK PRODUCTS WHICH INCLUDES

A) K.S PAAL.

B) K.S GHEE.

C) K.S CURD.

D) BUTTER MILK.

E) VESTA ICE CREAM.


ORGANIZATION

STRUCTURE


ORGANIZATION STRUCTURE


BOARD OF DIRECTORS

EXE.DIRECTOR MAG.DIRECTOR WHOLETIME DR

GENERAL MGR

FINAN.MGR PUR. MGR PER.MGR MKT.MGR QTY.MGR PRO.MGR

CHIEF.NUTRI

ASST.MGR

CHEMIST

LAB.ATTEN

ASSTA/C MGR SHARE.DEPT

ASST.FIN.MGR

EXE.OFFICER

OFFICE.ASST

CLERK

EXE.OFFICER

OFFICER

OFFICE.ASST

CLERK

EXE.OFF SECUTIY.OFF

OFFICER

CLERK

SECU. SUPER - VISION

SECU.GUARD

ASST.SALESMGR

SALES.EXE

OFFICE.ASST

CLERK

CUSTOMER SERVICE

SALES SUPERVISOR

OFFICER


SALES REPRESENTATIVE

WORKER

WORKER

MAINTENANCE FOREMAN

STORES OFFICER

BOILER OPR MAIN.OPR

ASST.OPR ASST.OPR

PLANT ATTN WORKER

ELE. SUPERVISOR

ELECTRICIAN

ELE.ATTEND

STORES SUPERVISOR

STORES CLERK

WORKER

ENGINEER

ASST.PLANT.ENGRRR

ELECTRICAL FOREMAN GODOWN EXE

SHIFT ENGR

CATTLE FEED OPR

REFINING PLANT OPR

ASST.OPR

ASST.OPR

ASST.OPR

SOLVENTOPERATOR

GODOWN SUPERVISOR

GODOWN ASST

WORKER

WORKER

HUMAN RESOURCE DEPARTMENT


HUMAN RESOURCE DEPARTMENT

FLOW OF AUTHORITY


HUMAN RESOURCE MANAGER

EXECUTIVE OFFICER SECURITY

OFFICER

SECURITYSUPERVISOR

SENIORSECURITY GUARD

OFFICER

JUNIOROFFICER

SECURITYGUARD

SENIORASSISTANT

WATCHMANOFFICEASSISTANT

CLERK

The Personnel department was seen as a place where the lesser productive

employees could be placed with minimal damage to the organization ongoing

operation. Individuals in the personal department were perceived as those

responsible for planning company picnics, vacation schedules and retirement

parties. Personnel as an activity were seen as a necessary but unimportant part of

the organization. Fortunately things have changed for the better and the status of

the personnel department has improved enormously over the years.

Personnel department is the main and most important

department of a manufacturing concern.

FUNCTIONS OF PERSONNEL DEPATMENT

1. Recruitment

2. Man power planning

3. Welfare functions

4. Grievance handling

5. Discipline

6. Industrial relations

7. Public relations

8. Job description

9. Job analysis

10.Job specification

11.Training

12. Performance appraisal

EMPLOYEE SELECTION PROCEDURES


Employees are selected strictly based on their educational

qualification, work experience technical know-how and age. Company will do

the recruitment by giving ads in newspapers, through employment exchange, and

by promoting its on employees based on their performance.

REMUNERATION

There are three types of wage earners: -

A) UNSKILLED BUT PERMANENT WORKERS – GETS DAILY WAGES

B) BADALI WORKERS—WAGES ON WEEKLY BASIS

C) OFFICE STAFF—SALARY ON THE LAST WORKING DAY OF

EVERYMONTH

SALARY CONSIST OF

1) BASIC PAY

2) FIXED DEARNESS ALLOWANCE

3) VARIABLE DEARNESS ALLOWANCE


ALLOWANCES

1) DEARNESS ALLOWANCE

This is given to permanent employees. D.A is divided into two

Classes:-

a) Fixed DA: Calculated at the rate of 15% of basic salary

b) Variable DA: Based on cost of living index published by govt of

Kerala

2) CONVEYANCE ALLOWANCE

3) WASHING ALLOWANCE

4.) CANTEEN SUBSIDY

5.) LEAVE & TRAVEL ALLOWANCE

6.) HOUSING SUBSIDY

7) SHIFT ALLOWANCE

8) OVERTIME ALLOWANCE

9) SCHOLORSHIP FOR EMPLOYEES CHILDREN

10) EMPLOYEE WELFARE FUND

STATUTORY LIABILITIES


1) PROVIDENT FUND: From the basic salary the company and the

employee channelise 12% into the provident fund a/c equally. Out of the 12%

contributed to P.F fund 8.33% are transferred to the pension a/c.

2) EMPLOYEES STATE INSURANCE: The Company pays about 4.75% of

total salary of employees to E.S.I. The employee pays a contribution of 1.75% of

total salary.

3) GRATUITY: An employee needs minimum 5 years of service to avail this

fund

4) BONUS: It varies according to their grades.

TRADE UNION


In this company there are 4 recognized trade unions like INTUC, CITU,

BMS.

A committee consisting of Chairman, Managing director, Whole time Executive

Directors, General Manager, Works Manager and Personal Manager approve the

demands of workers.

WORKERS WELFARE ACTIVITIES

The company established a trust known as Employees welfare trust in which 20

Rs is paid both by the employees and the company every month. Additional

funds are provided to employees during the death of employee, or in case of

employees’ sibling’s marriage.

SAFETY MEASURES

FOR SAFETY OF WORKERS AT PLANT, THEY ARE PROVIDED WITH

1) MASK

2) FIRST AID FACILITY

3) DUST EXTRACTION SYSTEM in plant, which helps to suck the dust

arising at the time of production.


LEAVE

1) CASUAL LEAVE: 9 DAYS FOR WORKERS AND FOR STAFF IS 11.

2) PRIVILAGE LEAVE: 15 DAYS PER YEAR.

3) SICK LEAVE: UPTO 90 DAYS.

RETIREMENT

Retirement age of employees is 58 years.


MARKETING DEPARTMENT



MARKETING MANAGER

SALES MANAGER

MANAGER

CUSTOMER SERVICEMANAGER

SALES EXECUTIVESALES

EXECUTIVE

SENIORASSISTANTSENIOR

ASSISTANT

OFFICE ASSISTANT

OFFICE ASSISTANT

CLERK CLERK

The company must design a marketing organization that can carry out marketing

strategies and plans. If the company is very small, one person might do all of the

research, selling, advertising, customer service and other marketing activities. As

the company expands a marketing department emerges to plan and carry out

marketing activities.

The most common form of marketing organization is

the functional organization in which a functional specialist heads different

marketing activities are headed by a functional specialist, a sales manager,

advertising manager, marketing research manager, and customer service

manager.

Managing the marketing function would be hard enough

if the marketer had to deal only with the controllable marketing mix variables.

But the company operates in a complex marketing environment consisting of

uncontrollable forces to which the company must adopt. The environment

produces both threats and opportunities. The company must carefully analyze its

environment so that it can avoid the threats and take advantage of the

opportunities.


IN THE COMPANY

The department headed by marketing manager and under him there are two

assistant managers one for sales dispatch and other for customer service and sales

promotion.

The company incurs less advertisement cost. As for the

kind of products its advertisement needs a different way of promoting its

products.

The company gives dealer board to dealers as an advertisement for their product.

The other advertisements used are

1) Product pamphlet

2) Notices

3) Cinema slides

4) Cloth banners

5) Wall paintings

6) Yearly calendars.

SELECTION OF DEALER


The field staff under assistant customer service and complaint manager will

evaluate the dealer on the basis of his financial capabilities and the scope of

demand of products in the area. If the dealer doesn’t buy at least one load of

cattle feed in row of 3 month, automatically the company will terminate his

dealership.

PRICING METHOD

In the case of oil price is based on Cochin market .the price is based after

evaluating of raw material and procurement and storage costs plus profit.

DISTRIBUTION

There are two types of distribution

1) EX FACTORY RATE --- company need not bear the transportation and

insurance cost.

2) RATE AT DESTINATION --- company need to bear the transportation &

insurance cost.



SWOT ANALYSIS

STRENGTH

1) Experience in the field over 25 years

2) Leadership in the market


3) Reputation & brand image of the co. & consistent quality of its products

4) Good network of dealership

5) Capable marketing personnel

6) Financial strength of the company

7) Acceptability of the feed & its quality standards in the market

8) Fully computerized plant

9) Efficient employer –employee relationship

10) Excellent infrastructure for manufacturing products.

WEAKNESS

1) As industries are importing cheaper oils which affects the demand of

solvent extracted coconut oil.

2) Inadequate promotional activities for dairy products.

3) Stagnant numbers in cattle population affecting market growth in future


OPPORTUNITIES

1) Expanding its distribution areas

2) Growing demand of its products

THREATS

1) Competition from other manufactures of organized and unorganized sectors

2) Probable entry of foreign entities

3) Indirect control by government over price of milk

4) Import of cheaper oils for industrial consumption leading to fall in demand for

solvent extracted coconut oil

SOCIETAL ETHICS

PROPER DISPOSAL OF WASTES THEREBY CONTROLLING

ENVIRONMENT POLLUTION

PROVIDING DIRECT AND INDIRECT EMPLOYMENT


25 LAKHS donated to Tsunami Relief fund

10 LAKHS DONATED TO EARTHQUAKE RELIEF FUND

OPENING OF K.S PARK

Children’s Park and Information Centre has been opened for the benefit of the public

SUGGESTIONS

1) Use of more board display advertisement.

2) Reference group should be formed to educate consumers.

3) Give timely rest to workers in order to produce consistent performance.


4) To increase the productivity to meet the growing demands.

5) Providing proper safety equipments to protect them from hazards.

6) Company can earn more profit by expanding the market.

CONCLUSION

KSE, a Company having an annual turnover of Rs. 187 Crores, is the largest

manufacturer of cattle feed. It provides employment to around 1500 numbers

directly and another 5000 indirectly. Its shares are being listed in three stock


exchanges in Cochin, Chennai and Mumbai. The Company commenced its

production in the year 1972.

It is marketing annually about 1.80 lakh tones of superior quality cattle feed. KSE

had successfully launched its Vesta Brand Ice Cream which has been well

accepted in the market for its matching international quality standards. KSE plans

to add more ice cream production units across Kerala in the coming years to

serve all pockets.

KSE is in the oil extraction Industry for the past 31 years. It is having two solvent

plants with processing capacity of 100 tonnes per day. The Company has also a

chemical oil refining plant of 20 tonnes per day.

The Company has secured the National Productivity Award for the year 2001-

2002 for being first in terms of production efficiency in the animal feed sector.

This is the sixth time in a row that the Company is being selected for this most

coveted award.

It is pertinent to note that in the Kerala industrial scenario, where many

Companies are closing down, either due to labour unrest or due to other

economic reasons, KSE continues to commence new ventures each year and run

them successfully. The Company is having six Units at different locations. The

relation with the labour Unions of all these Units is very warm and cordial.

KSE, with a capital base of Rs. 36 Crores embarks on an expansion to double its

Solvent Extraction capacity and add a most modern ecofriendly vegetable


refining plant. The Company has already identified Six Acres of land in the

KINFRA Small Industries Park, Koratty for this expansion.

In the first phase the Company plans to install one 200 MT per day solvent plant

for processing Oil Cakes and also a 100 MT per day physical refining plant. Both

these plants will be of international standard using most modern technologies,

where the process loss is kept to the minimum. The project will generate direct

employment to 125 and indirect employment to another 500 numbers. In the

second phase, a 100 MT per day oil fractionation unit will also be added.

As a pioneer in the solvent extraction industry, leader in cattle feed manufacture,

and an emerging force in ice cream and a resourceful new entity in dairy

development and milk products, KSE is determined to move with the times,

taking on new challenges, achieving new milestones.

BIBLIOGRAPHY

REFERENCE BOOKS


Marketing Management Philip Kotler

Human Resource Management Ashwathappa .K.

Production and Operation Management Ashwathappa. K.

WEBSITE

WWW.KSELIMITED.COM


http://WWW.KSELIMITED.COM/


kerala solvent extraction (kse)

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