Organizational Study- Kerafed.bbnsha

Organisation study at KERAFED

CHAPTER-1

INTRODUCTION

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

“The Kerala Kerakarshaka Sahakarna Federation Ltd”, (KERAFED)

Thiruvananthapuram. This study provides an opportunity to expose the

students 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 to be fruitful by familiarizing us to the organization and at the

same time it also helped us to create practical awareness.

KERAFED is one of the largest coconut oil producers in India.

Its coconut oil complex at Karunagapally in Kollam district houses state-of the art

facilities for extraction is one of the largest coconut oil mill in the sub-continent

with an installed capacity of 200 TPD.

KERAFED is the Apex Co-operative Federation of coconut farmers in Kerala.

It is the single largest procurer of coconut/copra, produced in Kerala.

It increases the income of 29 lakh farmers' families and creates employment

opportunities is the industrial sector. 

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Organisation study at KERAFED

Chapter- 2

Design of the study

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Organisation study at KERAFED

Objectives of the study

1. To study about the organization and how it functions.

2. To understand thee various functions of departments

3. To understand the flow of authority& responsibility of KERAFED

3. To assess the marketing efforts adopted by the company

4. To understand how the theoretical aspects are put to practice in the

organization.

Methodology

The type of research used for study is descriptive research. It includes

facts, findings and enquiries of different kind. The major purpose of descriptive

research is description of the state of affairs as it exists at present

Primary data.

Primary data is obtained through observation or through direct

communication with respondents in one form or another or through

personal interview The primary data for the study obtained from:

1 .Unstructured interviews with Managers and Departmental heads,

employees

2. Direct observation

3. Questionnaires

Secondary data.

Secondary data are those which have already been collected by someone

else and which have already been passed through statistical process. The

secondary data were collected from

Company records

Journals

Text books

Annual reports

Internet etc.

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Organisation study at KERAFED www.kerafed.com.

Scope of the study

The study is intended to attain a first hand experience of the overall running of an

organization. A detailed analysis of each of the activities performed by the

departments is included in the study. It also provides a chance to see the practical

constraints faced by the managers while putting theory into practice.

Limitation of the study

1. The company records which are of confidential nature were not

provided.

2. Many of their financial audits are yet to be published and this limited the

collection of data.

3. Since a face to face interview was conducted, there is a chance of

biasing.

4. The busy schedule of the departmental heads restricted collection of

detailed information

Period of study

The study was conducted from15 June 2009 to 25 July 2009

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Organisation study at KERAFED

Chapter---3

Industry Profile

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Organisation study at KERAFED

CHAPTER-2

INDUSTRY PROFILE

The coconut palm is one of the most valuable plants to man. In Sanskrit the

coconut palm is called “kalpa vriksha”, which roughly translated means “Tree of

Life”. In India , it provides livelihood to about 10 million people through various

activities from its cultivation to processing of its products. All the parts of the

coconut tree can be put to useful purposes- the roots, the trunk, the wood, leaves,

the blossom and all the parts of the nut.

Two major classes of coconut palm are typically recognized on the basis of

stature: tall and dwarf. The ones most commonly planted for commercial purposes

are the tall varieties, which are slow to mature and first flower six to ten years

after planting. They produce medium-to-large size nuts and have a life span of

sixty to seventy years. The dwarf varieties may have originated as a mutation of

tall types. The dwarf variety may grow to a height of twenty-five to thirty feet and

begin flower after three years, when they are only about three feet tall. Their life

span is only about thirty years.

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India is the third largest coconut producing country in the world.

Country Production (MT)

Indonesia 16,300,000

 Philippines 14,500,000

 India 9,500,000

 Brazil 3,033,830

 Sri Lanka 1,950,000

 Thailand 1,500,000

 Mexico 959,000

 Vietnam 940,000

 Malaysia 710,000

 Papua New Guinea 650,000

Coconut Industry in India

Coconut palms are grown widely in the coastal tracts of the country. The

coconut economy of India is in a convenient status. India accounts for 22.34

per cent 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 production of nearly 13000 million nuts. Copra processing,

coconut oil extraction and coir manufacturing are the traditional coconut based

industries in the country.

The price of the coconut in the country is dependent on the prevailing price of

coconut oil which is characterized by recurring violent fluctuations. The

behavior of coconut oil price is relatively dependent on overall supply of oils

and fats in the country. The fluctuation in the price of the coconut oil

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Organisation study at KERAFEDsimultaneously reflects on the price of coconut. The volatile price situation

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

and diseases 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.

The Coconut Development Board has been playing pivotal role in

promoting viable coconut based farming system, on-farm processing

and products development. The production and marketing of value

added products have started attracting commercial interest and the

situation brought rejuvenation in the sector. The market promotional

measures undertaken in pursuit of the popularization of health benefits

of coconut oil and tender coconut water have attributed a stimulating

effect on the less dependency of coconut oil driven coconut economy.

There has been a well defined network in the country to undertake the

R&D of coconut. The State Agricultural Universities, ICAR Institutes,

Agriculture/ Horticulture Departments of States/ UTs, organizations

like, NAFED, KERAFED etc. and private institutions contribute to the

pursuit of the research and development process of coconut in the

country.

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Organisation study at KERAFED

STATISTICAL DATA OF COCONUT

A ll India State-wise Final Estimates of area and production of Coconut

2005-2006

States /Union

TerritoriesAREA('000

Hectares)

Production

(Million nuts)Productivity

(Nuts/ha)

Andhra Pradesh 104.0 892.0 8577

Assam   19.1 204.9 10728

Goa 25.3 125.3 4953

Gujarat 16.4 138.3 8433

Karnataka 385.4 1209.8 3139

Kerala 897.8 6326.0 7046

Maharashtra  18.0 273.4 15189

Nagaland 0.9 1.2 1333

Orissa  50.8 274.6 5406

Tamil Nadu 370.6 4867.1 13133

Tripura   3.3 7.0 2121

West Bengal 24.9 323.5 12992

A & N Islands 25.5 87.1 3416

Lakshadweep    2.7 53.0 19630

Pondicherry 2.1 27.9 13286

All India   1946.8 14811.1 7608

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Strength of Indian Coconut Industry

One of the leading producers of coconuts in the world producing 13 billion nuts

per annum.

Coconut area distributed in 18 states and three Union Territories under different

agro-climatic conditions.

3000 years' tradition in coconut cultivation.

Premier coir manufacturing country in the world.

Producer of best grade milling copra in the world yielding high grade coconut

oil known for its aroma and flavor.

Large number of farmer's co-operative societies in primary processing and

marketing.

Government agencies such as KERAFED, State Trading Corporation, Kerala

State Marketing Federation and Karnataka State Marketing Federation in

manufacturing and marketing of branded coconut oil in small packs.

Hundreds of reputed and established private firms in manufacturing and

marketing of various coconut products including branded coconut oil in small

packs.

Wide range of coconut products both edible and non-edible available for

export.

Technical know-how and trained manpower for the manufacture of various

coconut based products.

Good number of cultivars / varieties having specific nut characteristics.

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Organisation study at KERAFEDAvailability of research support by reputed research organizations such as

CSIR, ICAR and DRDO.

Coconut Products of India

A large number of coconut products are manufactured in the country which

have both domestic and export market.

Vinegar and soft drink are manufactured in the country from coconut water.

Tender coconut water is another product which is manufactured and

marketed successfully. 

Coconut Products:

1. Tender Coconut Water

2. Copra

3. Coconut Oil

4. Raw Kernel

5. Coconut Cake

6. Coconut Toddy

7. Coconut Shell based Products

8. Coconut Wood based Products

9. Coconut Leaves

10. Coir Pith

Coconut Oil

Coconut oil makes up about 20 percent of all vegetable oils used in the world.

Copra, the dried kernel is the chief commercial product from coconut, which is

mainly used for oil extraction. Coconut oil is made from fully dried copra

having maximum moisture content of six per cent. For the extraction of oil

from copra the common method still prevailing in our country is by using

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Organisation study at KERAFEDrotary chucks. But the efficient system of extraction of oil is by the use of

expellers.

Coconut oil is an important cooking medium in Southern parts of the country

especially in Kerala State. Besides, the oil has varied industrial applications. It

is used in the manufacture of toilet soaps, laundry soaps, surface active agents

and detergents, hair tonics, cosmetics, etc. It is used throughout the country as

a hair oil as it helps growth of the hair. As a massage oil it has a cooling effect

on the body. Owing to these qualities coconut oil has a potential market in the

country. Since the price of coconut oil in the international market is very

much lower than the domestic price, the quality and attractiveness of

consumer packs are important factors to compete in the world market. While

the demand for coconut oil for cooking purpose is elastic, its demand as hair

oil is inelastic.

Coconut oil is marketed in bulk as well as in packs ranging from sachets

containing 5 ml. to 15kg tins. The branded coconut oil in small packs is

mainly marketed as hair oil and body oil. There are several brands known for

their superior grade oil which have export market throughout the world. India

has unbeatable quality advantage in this sector. Refined coconut oil is also

manufactured in the country for industrial uses. Refined coconut oil is mainly

used in the manufacture of biscuits, chocolates and other confectionery items,

ice cream, pharmaceutical products and costly paints. Generally, filtered

coconut oil is used for cooking and toiletry purposes. 

  Virgin Coconut Oil

Virgin Coconut Oil is also made in the country from the milk extracted from

raw kernel.  This is done on a small scale by the traditional method which is

now partially mechanised or on a large scale by adopting wet processing

technology. Coconut milk is fermented and then by mechanical process,

water is separated from oil. No heating or application of sunlight or dryer is

done for the process. The virgin coconut oil is free from trans fatty acid,

high in medium chain fats (MCFA) known as lauric acid, which is identical

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Organisation study at KERAFEDto special group of fats found human breast milk and also rich in vitamin-E.

High quality of this oil makes it an ideal massage oil for babies and also for

skin and hair applications. 

Applications

Cooking

Coconut oil is widely used in cooking, the refined oil is the one most commonly used.

Manufacturing

Coconut oil is used in volume quantities for making soap and cosmetics.

Hydrogenated coconut oil is often used in non-dairy creamers, and snack foods.

Fractionated coconut oil is used in the manufacture of essences, massage oils and cosmetics

Coconut oil is an important component of many industrial lubricants, for example in the cold rolling of steel strip.

Cosmetics and skin treatments

Coconut oil is excellent as a skin moisturizer and softener. Coconut oil is used for styling hair, and cooling or soothing the head.

As a fuel-

Traditional use

Coconut oil is used in oil lamps.

In diesel engines

Coconut oil has been tested for use as a feedstock for biodiesel to be used as a diesel engine fuel. In this manner it can be applied to power generators and transport using diesel engines.

Raw coconut oil can be used as a fuel for generating electricity by remote communities that have an abundant supply of coconuts and milling capacity, provided diesel engines are adapted.

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Organisation study at KERAFEDCoconut oil is currently used as a fuel for transport in the Philippines

Health effects

Studies have found that coconut oil can help in weight loss and poison recovery.

Antimicrobial effects

Coconut oil be used in the treatment of fungal infections.

Coconut Oil - Unique & Healthy

Coconut oil finds extensive use in food, toiletry and industrial sectors because of its

unique characteristics. The numerous qualities of coconut oil reported are:

Oil of natural origin

Edible in raw form

Saturated and stable

Pleasing flavour

Light colour

Pleasant aroma

Biodegradable

High resistance to oxidative rancidity

Sharp melting behaviour

Narrow temperature range of melting

Skin friendly oil

Effective heat transfer agent in frying

Better shelf life for fried product

Ideal for deep frying

Ideal confectionery fat

Provides moisture barrier and imparts high gloss for bakery items in spray oil

use

Carrier and protective agent for fat soluble vitamins

Low viscosity

Superior baby oil

Oldest and most widely used cosmetic raw material

Maximum glycerin content

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Organisation study at KERAFED Easily saponifiable even in cold

Good emollient on skin, skull and hair

Gives softness and suppleness to skin on regular massaging

Spreads easily on the skin when used as massage oil

Excellent base for hair oil

Provides gloss to hair

Germicidal and antimicrobial property

Lowers evaporative loss of water from skin

Protects skin from heat

Ready penetration into the skin and appreciable water absorbing property

Nourishes the hair roots and provides coolness to the body

Imparts hardness and lathering property to soaps

Illuminant and lubricant

Does not leave a smoky flame if used in open lamps

Blends well with other oils

Potential fatty raw material in chemical industry due to its biodegradable

nature

Excellent fat source in the preparation of filled milk and infant food formulae

Essential for the manufacture of toilet soaps, shaving cream, liquid soaps, 

natural shampoo and other cosmetics

No harmful effects due to reheating

Can be converted into diesel fuel

Essential ingredient in ghee substitutes

Nutritional / Medicinal

Easy digestibility and absorbability

Ideal energy source in baby foods

Contains Vitamin E

Composed mainly of short and medium chain fatty acids which have 

desirable qualities and functions

Does not contain cholesterol

Reduced fat accumulation in body

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Organisation study at KERAFED Easily oxidized and therefore a preferred energy source

Requires no transport system to absorb, digest and metabolize

Very low content of Omega 6 fatty acid

Studies undertaken by the Biochemistry Department, University of

Kerala showed that coconut oil:

Does not elevate blood total cholesterol 

Increases blood HDL cholesterol

Consumed along with coconut kernel lowers blood cholesterol

Copra  

Copra is the dried meat, or kernel, of the coconut. Copra making can be defined as the

systematic process through which the fresh meat coconut containing 50 to 55%

moisture is dried in sun or other sources of to bring down the moisture content to 5%

to 6% only.

Eleven to twelve month old nuts are utilized for copra

making to obtain the optimum output of better quality copra. The nuts are

first husked to remove the fibrous outer layer of the husk. The husked nuts

are then split into halves and the water is drained off. These halves are then

kept for half an hour with the open side turned down to ensure that entire

water is drained off, if this is not done , some moisture will be retained

which will in turn lead to deterioration of copra. The halves or cups are now

ready for drying, which should invariably start with in 4 hours after

breaking.

Two types of copra namely milling and edible are made in India. Milling

copra is used to extract oil while edible grade of copra is consumed as a dry

fruit and used for religious purposes. Milling copra is generally

manufactured by adopting sun drying and artificial means. Substantial

quantity of milling copra is manufactured using modern hot air driers

resulting in the availability of superior quality copra which is required for

the manufacture of best grade coconut oil. A good number of farmers' co-

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Organisation study at KERAFEDoperative societies are also involved in the manufacture and marketing of

milling copra. Milling copra is available in different grades. Edible copra is

made in the form of balls and cups. Different grades of edible copra are

available in the market according to the size, colour etc.

Quality of copra is determined based on moisture content and extend of

inferior type of copra.

Inferior types of copra are generally:

1. Mould effect

2. Immature or rubbery copra made from immature nuts.

3. Insect attacked copra.

4. Discoloured copra.

Good quality copra is one which contains not more than 6% moisture.

Coconut oil is obtained by crushing copra most efficient method of extraction is by

expeller.

Various Methods Yield of oil

Chucks 58% - 60%

Rotary Mills 62% - 63%

Expellers 63% - 65%

Coconut Cake

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Organisation study at KERAFEDCoconut cake is the residue left after the extraction of oil from copra which is

mainly used as a cattle feed. Coconut cake contains 4-5 per cent oil which is

extracted by solvent extraction process. This oil is generally used for industrial

purpose and de-oiled cake is used to make mixed cattle feed. There are a few such

units in the country especially in Kerala.

NAFED

National agricultural cooperative marketing federation, which was organized

in 1958, represents the entire marketing structure at the national level. It was

established with the object of coordinately and promoting the marketing and

trading activities of the members in agricultural and other commodities.

Their main objectives are:-

To make arrangements for the supply of agricultural requirements of

its members.

To promote interstate and international trade in agricultural and other

commodities.

To render advice and technical guidance to its members.

The main aim of NAFED is to assist the marketing of cooperatives in the states to

develop their marketing business. In order to achieve this NAFED adopts various

strategies with a view to ensure better returns to the farmers. It undertakes price

support operation, buffer stocking, export and important of commodities etc to

balance production with consumption. When the government of India formulates

policies for support price in respect of certain commodities, it appoints NAFED as

its agency for procurement.

Coconut Day (2nd September)

September 2nd , of every year has been designated as coconut day as per the

decision of Asian and Pacific Coconut Community head quarters at Jakarta,

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Organisation study at KERAFEDIndonesia. Foundation day of APCC also falls on 2nd Sept. A major coconut

growing countries including India are the members of the APCC.

The celebration of the annual coconut day is aimed at creating more awareness on

the importance of the coconut and focusing world attention to this crop to enhance

its potential in alleviating poverty, encouraging investment in the sector and

promote total development of coconut industry in the member countries. In India

coconut development board is taking the lead in the annual celebration of the

coconut day

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CHAPTER 4

COMPANY PROFILE

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Organisation study at KERAFED Company Profile

Introduction

“Kerala Kerakarshaka Sahakarna Federation Ltd”, (KERAFED) was

registered under the cooperative societies Act in 1987, with assistance of

European Economic Community, National Cooperative development

Corporation and the Government of Kerala.. KERAFED is the Apex Co-

operative Federation of coconut farmers in Kerala and is the largest producer

of coconut oil in India. The federation started commercial production in

1993. The head office of KERAFED is located in Thiruvananthapuram.

KERAFED's coconut oil complex at Karunagapally in Kollam district is one

of the biggest such units in India, with a capacity of 200 Tons per day.  

The primary objective of Kerafed is to organize coconut growers by bringing them

under the cooperative umbrella and to provide them with all supplies and services

to augment their income base by increased productivity and value additions

through the integrated system of production achievement, storage , processing,

diversification and marketing of coconut oil and all/any products of coconut palm

at a price remunerative to growers and fair to consumers.

As the coconut farmers in Kerala were reeling under the strange hold of powerful

p country trade cartels that consistently manipulate market conditions and dictate

price trend to their advantage , Kerafed aimed at procurement of 50% to60% of

the total coconut / copra produced in the state which will be processed at its own

processing unit and marketed.

KERAFED is the single largest procurers of coconut / copra produced in Kerala

from 900 societies all over the state. KERAFED has a good distribution network

consisting of stockiest , dealers and suppliers.

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Organisation study at KERAFED

The Objectives of KERAFED are:

To reduce edible oil imports.

To provide an impulse effect on internal production of coconut.

To develop the agricultural potential of Kerala State.

To strengthen the co-operative movement.

To secure the marketing of coconut and its 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.

 Thus to increase the income of 29 lakh farmers' families and create employment

opportunities is the industrial sector. 

For effectively and efficiently carrying out the administrative and

operational practices on a day to day basis, the state is divided into three

region, .the southern region, the northern region and central region. The

southern region consists of the revenue districts - Thiruvananthapurm,

Kollam, Pathanamthitta, and Alaphuzha, the northern region consists of

Malappuram, Kozhikkode, Wayanad, Kannur and Kasargode districts and

the central region consists of Kottayam, Idukki, Ernakulam,Thrissur,

Palaghat districts. 300 primary agricultural credit cooperatives societies in

each region are members of the federation to undertake production,

procurement, marketing activities at the farmer’s level. For processing and

product diversification, each region will have one processing plant with a

capacity 200 tones of copra per day.

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Organisation study at KERAFEDFARMER FRIENDLY ORGANISATION 

For  over  29 lakh  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 

and  rendering  value  added  services  to  enhance  their  earnings  through  

improved   productivity,  and   by assisting  them  in production and

procurement. Apart from these, the Federation organises periodic extension

activities to help farmers,

like demonstration farms, training camps, exhibitions, seminars and

publication and distribution of bulletins and literature on coconut farming 

Also  Kerafed  reimburses  the  expenses  for  establishing  copra  driers, 

through the primary agricultural co-operative societies. 

Sl. Members of the Federation no

1 Government of Kerala 1

2 Kerala state cooperative agricultural 1

3Kerala State Cooperative Agricultural

Development Bank Ltd.1

4 District Cooperative Banks Ltd. 9

5 Primary Cooperative Agricultural Bank 25

6 Primary Agricultural Cooperative Credit Societies 898

935 Nos.

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Value-Addition unit at the Kerafed Oil Complex Karunagapally

It has been decided that the Kerafed should diversify its activities through a value-addition project. The 5.4-crore project would help produce 1,000 tonnes of desiccated coconut, 2,100 tonnes of coconut cream and 3,500 tonnes of coconut milk annually. As many as 103 lakh coconuts would be required for the project each year. Fifty per cent of the products were to be sold in the domestic market and the remaining exported.

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Organisation study at KERAFED

Copra Procurement Process

coconut

The coconut farmers deposit their product with the respective Primary

Agricultural Cooperative Society and collect the rate of copra prevailing in

the market on that particular day. Primary Agricultural Cooperative Society

on their part check the quality of the copra and inform the KERAFED about

the procurement details. The respective mobile team officers visit the society

and collect the same after checking the quality and transactional details. This

copra is then transferred to the processing plants.

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Farmers or coconut growers

Mobile Team of Kerafed

Primary agricultural cooperative society

Processing,plant /Godown

Organisation study at KERAFED

Product Profile

"KERA" Brand of coconut oil is produced by KERAFED from copra of the

finest quality, directly procured from coconut growers in Kerala –“the land

of coconuts”. The copra thus procured is processed using the most modern

technology. In the selection and processing of copra, KERAFED employs

strict quality control measures to ensure product superiority and purity. A

unique two stage filtering process is employed by KERAFED to retain the

original aroma and flavour of 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 Standards vide IS: 542-1968. Certificate of Authorisation

to grade "KERA" coconut oil under AGMARK has also been obtained. Kera, the

branded oil from KERAFED, apart from being delivered in packages of 100 ml,

200 ml, 500 ml bottles, half and one litre pouches, 8 ml sachets, one litre pet

bottles, 5 kg cans and 15 kg tins, is also marketed in bulk. The raw materials

used for these packing are of virgin / food grade, approved by CFTRI, Mysore /

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

corrugated cartons, as per specifications.  

Apart from meeting the marketing needs in Kerala , Tamilnadu, Karnataka and

Andra Pradesh etc, the programme to popularize the brand in cities like Newdelhi,

Banglore, Mumbai and Kolkata is 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'.

There are also plans to develop more herbal oil products from coconut, as the

federation has recently introduced 'Kerajam Kesamrudam' herbal oil in the state.

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Organisation study at KERAFED

KERA  is  proud to be patronized by millions as the tastiest of all cooking

mediums and  the  most  ideal  hair  oil.  Truly  the  colour of  gold and the

smell of yore, KERA enjoys  an  undisputed  plurality of  the  market  share

in Kerala -a feat achieved by ultimate  customer satisfaction. 

A permanent place in the hearts of housewives, chefs and every food loving

keralites. 

Not resting on the  laurels,  the  thought  process is already at work at

Kerafed.

Plans  are afoot  to  enter  into the  field of  producing  highly demanded

coconut related  products like  desiccated coconut, coconut cream, bottled

tender coconut water,  coconut  milk and  confectionery products etc. It is

hoped that the good will  of  KERAFED build up by high customer

satisfaction by the performance of products like Kera, can be thus employed

to conquer newer domains.

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 tones per day

A predominant share of the market in Kerala is enjoyed by Kera, the

year at economical rates.

Safeguards the interests of over 27 lakh coconut farmers in Kerala

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Organisation study at KERAFED

Chapter-5

Department Profile

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Organisation study at KERAFED CHAPTER--5

DEPARTMENTS

FUNCTIONAL AREAS

Departmental study

Organization structure

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 indicates the

departments and vertical dimension indicate hierarchy.

Board of Management elected by 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 supreme

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

at the top of the organization hierarchy among the employees of the

organization.

The departments in KERAFED are:-

1. Marketing Department.

2. Finance Department.

3. Cooperative Development Service Department.

4. Production centres.

5. Administrative Department.

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Organisation study at KERAFED

Chapter-6

Organization chart

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Organisation study at KERAFED Organization structure

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Managing Director

Director Projects

Assistant Manager & Regional Managers

Plant Manager Manager (CDS)

Assistant Manager (Mechanical & Production)

Finance Manager

Accountant

Administrative Officer

Junior manager (Quality Control)

Confidential Assistant

Senior A/C

Marketing Manager

Confidential Assistant / Typist

Assistant Manager Packing

Assistant Manager & Assistant Manager (A/C)

Godown Packing / Material Assistant

Analyst Supervisor (Maintenance)

Shift-in Charge (Mill)

Shift-in Charge (Filling)

Supervisor (Production Material)

Supervisor Lab

Confidential Assistant / Typist

Cashier

Workers

Supervisor(Filling)

Supervisor(Mill)

Operator

Organisation study at KERAFED

Marketing Department

Marketing Department is controlled by Marketing Manager, who is assisted

by Junior Manager , three Regional Managers and Branch Managers. Below

them are the confidential assistant and clerks. For each districts in Kerala ,

there are two marketing apprentices. the marketing department strategies

and efforts helps the federation to increase the sales through the advertising,

sale offers/discounts and creating proper distributing channels. KERAFED 

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

insight  into  the  future.

Structure of marketing department

Marketing Manager

Assistant Manager Regional Managers

Confidential Assistant Branch Managers

Functions

To find new markets.

Deciding pricing strategies.

Strengthening the agency network.

Appointment of agencies.

Forecasting the demand.

Creating awareness.

Collection of payments.

Grievance redressal of customers.

IMK ADOOR Page 32

Organisation study at KERAFED Keeping relevant information and exchanging with other

departments.

OBJECTIVES OF MARKETING DEPARTMENT

The main objectives of marketing department are:

Selection and appointment of stockiest/agents/direct sales

customers and others.

Price fixation , fixation of sales commission and overall sales

policy including market budget.

Order evaluation and acceptance of order registers, priority

booking registers, dispatch registers.

The marketing manager monitors the pulse of the market, competition

prevailing in the market , activities of competitors , demand levels etc. he

analyses all such situations and then takes effective promotional

activities .the assistant sales manager is concerned with general duties like

finding out market of Kera oil by field work. The sales officer and other

staffs in the department help to strengthen the link with agents.

PROMOTION OF PRODUCTS

Advertisement of KERAFED products are mainly done through media and

such type of things are done by star communication. Main channel of

communication with the customers are :

1. MEDIA

2. PRINT MEDIA

News paper

IMK ADOOR Page 33

Organisation study at KERAFED Magazines etc.

Recently the advertisement of KERAFED’s products shown in

Asianet and in Kairaly channel

PLACE (Distribution)

Apart  from private distributors, Kerala State Civil supplies corporation and

Consumer Federation has taken up distribution in the public sector . Thus

confirming the availability of Kera to consumers year round. Additionally in

Kerala itself Kerafed have around 5000 retail outlets selling Kera. 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.  The programme to popularize the brand in cities like

Newdelhi, Banglore, Mumbai and Kolkata is already on the roll. 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'. Exported 40 MT to

middle east in 2006-07.

Kera  is  currently  part  of  the  biggest  retail  network - CSD,  Ministry  of 

Defence. Oilseed  co-operatives like Karnataka Oil Federation (KOF), Tamil Nadu

Co-operative 

Oil Growers Federation (TANCOF) and Oil Federation of Madhya Pradesh will

all soon be complementing the already existing marketing and sales channels of

Kera, in their respective States. 

The marketing officials are visiting 50 outlets per day by which a consultant

rapport is kept with the retailers were fixed to stock kera. The distributors network

was revived and distributors were appointed wherever vacancies existed . In

addition , non performing distributors were replaced . all the distributors were

IMK ADOOR Page 34

Organisation study at KERAFEDgiven a target based upon the market potential and they were fixed to keep

minimum of one –week stock in Godown. The complaints of distributors , retailers

and consumers were immediately solved.

Sales

`Kera' from `Kerafed' continues to play a dominant role as cooking oil in the

Kerala market. Between 400 and 600 tonnes of `Kera' coconut cooking oil was

sold in Kerala, in pouches, every month. Kerafed expects to sell about 20 tonnes

of coconut cooking oil in the Gulf market every month. Sales creates record during

the Onam seasons.

Kera sales volume 1 liter 75%

500ml 20%

100ml and others 5%

Cooperative development services

Cooperative development services department is responsible for the procurement

of coconut / copra from PACS and individual coconut farmers. KERAFED is the

IMK ADOOR Page 35

District wise sales(MT) Districts 2007-08(9Months)Thiruvananthapuram 676.90Kollam 1193.30Pathanamthitta 316.35Alappuzha 483.03Kottayam 540.56Idukki 67.57Ernakulam 897.35Trichur 227.70Palakkad 161.92Malappuram 102.96Kozhikode 315.98Wayanad 123.9Kannur 87.08Kasargode 140.48

Organisation study at KERAFEDsingle largest procurer of coconut in Kerala. Its primary function is to procure

coconut and copra from the producers through primary co-operatives with support

price declared from time to time by the Union Government. The direct interaction

with the farmers eliminating middlemen results in the entire benefits accrued to

the farmers and only best of raw materials then sourced goes into the making of

Kera. KERAFED gives much importance to the quality of collected copra and

therefore lending “moisture meters “ to the PACS at a subsidy . this ensures the

quality of copra procured, even at grass root level.

CDS departments is also dealt with purchase of packing materials such as cans,

pet bottles, carry bags etc. these are purchased by inviting quotations annually.

The firms quoting lowest bid is selected.

.

Structure of Cooperative development services department

Manager CDS

Senior Accountant

Assistant manager (packing)

Senior Assistant

Cooperative development services department forms an integral part of the

activities of the firm . Superior quality copra is required for the manufacture of best

grade coconut oil. Since the availability of copra is comparatively seasonal,

sometimes a large quantity of copra should be stored for meeting festival seasons.

Purchase policy

The whole procurement policy is aimed at giving maximum benefits to the farmers.

IMK ADOOR Page 36

Organisation study at KERAFEDAs per procurement policy , Kerafed has to collect coconut through PACS. But the

so collected coconut is insufficient to meet the demand , it can collect from the

individual farmers also. Members societies get the market price plus Rs 40/

quintal, in addition to service charge since the coconut / copra is collected at the

plants , actual transportation cost is also paid. Kerafed has procured 9501.5MT

copra during 2006-07 and 7751MT in 2007-08(9months). In addition to copra,

Kerafed also purchased coconut from farmers directly at 4 Rs 40 paisa / coconut.

Kerafed is constantly trying to increase its copra procurement by giving more

incentives to the primary agricultural cooperative societies that procure more

copra. This will motivate other societies to boost up their copra procurement.

The copra procurement guidelines are issued time to time , to which

concerned officers act accordingly. The finished goods reaches the consumers

through distributors appointed in districts and cities.

COMPETITORS

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

KLF NIRMAL etc .Parachute is the main market leader in the Indian branded

coconut oil industry. The main players in the Indian market are SHALIMAR,

COCO CARE, TATA products etc.

IMK ADOOR Page 37

Organisation study at KERAFED

FINANCE DEPARTMENT

IMK ADOOR Page 38

Organisation study at KERAFEDFINANCE DEPARTMENT

A well managed financial department is the strength of a good business

enterprise . In Kerafed , finance department is headed by finance manager

responsible for all the financial transaction, procurement and allocation of funds

are the major function of finance department.

The main sources of funds of Kerafed are;-

1) Share capital contribution of government of Kerala.

2) share capital contribution by cooperative institutions.

3) Loans from NCDC, cooperative banks and government of Kerala.

4) Grants and subsidies.

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

and administrative expenses etc.

Structure of finance department

Finance manager

Assistant manager(accounts) Assistant manager( Finance )

Senior Accountant Staffs

Accountants

Cashier

The major functions of the finance department are;-

Accounting.

Auditing.

- Internal Auditing.

- Statutory Auditing.

- Government Auditing.

Releasing the payments and collecting receipts from contract with

outsiders.

IMK ADOOR Page 39

Organisation study at KERAFED Information management

Budgeting

The various sections working with the finance department are ;

Budgeting

Commercial Accounts

Bill Passing

Establishment

Cash

Works

One of the primary functions of the finance department is maintaining the books

of accounts .in this process extensive use of computers are employed for the

purpose of feasibility and accuracy. The trial balance is prepared on this basis of

the various ledger folios and other transaction details and then profit and loss

account and balance sheet is prepared based on trail balance.

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

budgeting process involves prediction of future sales and the preparation of

estimates based on that sales. Data such as future sales are provided by the

marketing department on the basis of past sales details and current market

conditions. The future production , labour, cash and other resource requirements

are detailed in the budget. The budgeting is an all important task and no margin of

error is expected in this activity.

The process of internal auditing is conducted by cooperative wing auditor assisted

by the finance department and statutory audit by an professional chartered

accountant. The finance department of Kerafed conducts inspection of concerned

transactions details of primary cooperative societies.

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

city compensation allowance which is paid monthly to employees. The payroll

will be prepared one day before the disbursement , enabling the employee to see

different allocations before he accepts the salary . The mode of payment is through

bank or cash counters according to the employees wish. The cash section deals

IMK ADOOR Page 40

Organisation study at KERAFEDwith the payment and receipt of cash. The payment exceeding Rs 20000 will be in

cheques. Finance department maintains a full record of all activities in computers .

Consolidated records of accounts are made using computers.

IMK ADOOR Page 41

Organisation study at KERAFED

ADMINISTRATIVE /H R DEPARTMENT

IMK ADOOR Page 42

Organisation study at KERAFED

ADMINISTRATIVE / H R DEPARTMENT

In KERAFED Administrative department is responsible for general as well as

personnel administration. Administrative officer is the head of the department .In

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

seen in other organization.

The functions of administrative department includes;-

1) General as well as personnel administration.

2) Administrative functions , includes attendance monitoring , recording and

controlling absenteeism etc.

3) Other functions like providing canteen services, ESI , Provident fund ,

accident benefits.

4) Keeping and maintaining confidential report of each employees for the

purposes like promotion , fringe benefits , training etc.

5) Maintaining the relationship with workers and organization.

6) To provide sufficient and adequate training to employees when any

technological changes are introduced.

Employee profile

Category Number of employees

Permanent employees 95

Deputation 7

Contract 12

Temporary and casual 147

Employee Compensation Structure

1) Basic salary.

2) Dearness allowances.

3) Home rent allowances.

4) City compensation allowances.

5) Special allowances.

IMK ADOOR Page 43

Organisation study at KERAFED Medical reimbursement schemes are also available for the workers and

gratuity is given in collaboration with Life Insurance Corporation of India.

Paying bonus 8.3%(minimum bonus). One day leave as compensation and

ESI.

Structure of administrative department

Administrative Officer

Confidential Assistant

Clerks / staffs

This department is responsible for the human resource activities of the firm

and has got a vital role in the company . The administrative officer acts as a

link between government and the organization . He has the responsibility to

monitor and inform the activities of the organization to government and

pass the government the organization.

Recruitment

Employees are recruited through

1.The Kerala State Public Service Commission.

2.By deputation from other department.

3.Through direct recruitment by the board.

IMK ADOOR Page 44

Organisation study at KERAFED4.On contract basis.

Training and Development

Staff and employees are given training in office management in association with

HRD . Employees are also given computer training .various training programs are

given to workers also.

Employee compensation

KERFED employee compensation structure contains:

1. Special allowance.

2. House rent allowance.

3. Dearness allowance.

4. Basic salary.

Trade Unions

Trade unions are voluntary organization of employees or employers

formed to protect and promote their interests through collective

action .their presence is felt in all activities of an organization.

In Kerafed there are two trade unions for employees ;

1) Kerafed staff association .

2) Kerafed employees organization .

IMK ADOOR Page 45

Organisation study at KERAFEDPRODUCTION PLANT

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

to produce the 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 equipments in

Kerafed is installed in straight line basis. The capacity of the plant is 200MTPD

(Metric Tonnes 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 do 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 the things are right then it is accepted

for processing.

The production department of Kerafed has the following three division.

Storage division.

Manufacturing Process.

Packing and filling unit.

IMK ADOOR Page 46

Organisation study at KERAFED

Hierarchy of Production plant

IMK ADOOR Page 47

Plant Manager

Assistant Manager(Mechanical & Production)

Supervisor(Production Material)

Supervisor(Filling)

Godown/Packing / Spares Assistant

Supervisor(Maintenance)

Shift-in Charge(Filling)

Shift-in Charge(Mill)

Supervisor(Mill)

Operator

Junior Manager (Quality Control)

SupervisorLab

Analyst

Organisation study at KERAFED

Storage Division.

The storage capacity of Godown is 6000tonnes. The gigantic size of the

Godown is not proportion with the amount of copra procured. Thus almost

50% of the Godown capacity is unutilized. The storage division follows FIFO

method of issuing. for processing.

The pros and cons due to this method are;

The copra that comes first goes out first. Thus no accumulation of old

stock is allowed and there by 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 will be difficult to fix

the sales price.

The Godown section is headed by an officer in charge whose office is

situated inside the Godown. He maintains the records pertaining the intake

of copra and also transfer of copra to the manufacturing division. copra to

be transferred to the manufacturing division is done through conveyors

whose base starts from within the Godown. There are nearly100

temporary loading and unloading workers at the production plant.

Manufacturing Division

The manufacturing unit is headed by a technical officer whose cabin

is situated with in the manufacturing unit. The production plan of the unit depends

on the market demand of the product. It depends or varies on the festival seasons.

More product is required during the festival seasons especially during “onam”.

There are mainly three shifts in the factory. The man power 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 employees.

IMK ADOOR Page 48

Organisation study at KERAFED 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.

6) Tank forms for oil storage .

7) Packaging.

Manufacturing process

Well dried copra with a moisture content not exceeding 6 per cent is cleaned

well from any foreign matter. In the manufacturing unit , dried copra is

received through the conveyors and is directly passed through a cutting

machine and there it goes for crushing. After crushing , the copra is converted

into small which are required for the purpose of extraction. These small pieces

are transferred to the expellers by small passages consisting of crushed blades

and gates. The crusher blades crush the pieces of copra into smaller pieces

before being fed into expellers . The purpose of gates is to check the flow of

any unwanted substances into expellers. If any waste substance is found along

with the copra then the gates are closed and the entire lot is carried back in the

return passage and cleaned before reintroducing it into the expellers . The

crushed copra is then put into the expellers and first extract oil, second extract

oil etc is derived which is then passed on to the first filter and then the second

filter . This process of double filtration provides pure and high quality oil. This

oil is then passed on to the storage units through pipelines and the oil is stored

in the bulk for sediments in order to get clear oil for one week. After one week

it is used for packing and filling.

The oil cake obtained as a by-product will find a ready market as a cattle feed

and in the manufacture of mixed cattle feeds.

Extraction from copra

Oil content 64%

IMK ADOOR Page 49

Organisation study at KERAFED Oilcake 32%

Loss 4%

The entire process and machinery in the manufacturing division is automated

and thus requires minimum labour. The modern equipment in the unit ensures

smooth flow of work as well as contribute 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

OIL TANK (Stage -1)

Oil EXPELLER

(Stage -2)

Oil cake

IMK ADOOR Page 50

Organisation study at KERAFED

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 ie ; from 6ml sachets to 15 kg tins. As

per the demand the packing division takes oil from the storage tanks and uses it for

filling into sachets, pouches and bottles .

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

material The raw materials used for these packing are of virgin / food grade,

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

packing is done using 3/5 ply corrugated cartons, 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 layout , the officer can have a complete view

of the unit and effective control over the unit. Man power required per shift is 37.

Bottling filling line in the plant can automatically fill and seal bottles .There is also a sachet

machine which fills oils in 6ml sachets. The role of manual labours in this unit is limited.

Machine Number

Pouch Filling Machine

Single

Double

2

1

Tin/ Can 1

Bottle Filling Line machine 1

Sachet Filling Machine 1

Quality Check process in this unit is undertaken under 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 lot of oil on

the basis of specified guidelines due approved , the process of packing is

IMK ADOOR Page 51

Organisation study at KERAFEDundertaken. The price of the product varies frequently and on that basis the

machine is adjusted to print the existing price. In the packing unit manual

weighing is also conducted after the oil is packed to ensure 100% accuracy.

(2)QUALITY CONTROL DEPARTMENT

 Quality specifications of a global standard are adhered to by

KERAFED stringently  at  all  stages of  production. To the extend  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. 

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

types of copra. Inferior types of copra are generally :

1) Mould effected.

2) Immature or rubbery copra made from immature nuts.

3) Insect attacked copra.

4) Discoloured copra.

And to find out the Moisture content.

The fungus seriously affects the grade of oil. The moisture content affects

the shelf life. If the load fails the Quality test, the load is rejected. If the load

passes the quality inspection, the load is accepted and deposited at

KERAFED Godown.

In order to ensure quality , initially Random sampling techniques is

used .Random sample is drawn for its moisture test at the laboratory .

Copra with moisture content below 6% is normally accepted for processing

in KERAFED. Once the Quality Report is ready from section, the Material

Receipt and Service Request prepared by the Procurement Section is given

to Account Section for the

Approval of the cost of material and then passed by plant manager.

IMK ADOOR Page 52

Organisation study at KERAFED

The oil extracted is subjected to the following tests:

1) Acid Value

This is a test to asses the quality of oil. Free Fatty Acid content in the oil is

examined. This is to determine the grade of the oil.

If Free Fatty Acid content in the oil is

0 to 1.5 it is considered as 1St grade.

1.5 to 3 it is considered as 2nd grade.

But both can be used as edible oil.

2) Moisture Test

Presence of moisture decreases the shelf life of edible oil. In KERAFED the

maximum permissible moisture content in oil is .25.if the moisture content

is 0.1 , the oil will be very high quality . it will be transparent with pleasant

odour.

3) Colour test

Kera oil posses a light Yellowish tinge. The formula used for the

calculation is

Y + 5 R

Where “Y” indicates Yellow

“R” indicates Red.

The value of “Y” and “R” is obtained from an instrument called Lovibond

Tintometer. A value up to 4 units is permissible.

4) Unsaponification matter

IMK ADOOR Page 53

Organisation study at KERAFED It is an important test carried out to find the adulteration in the oil. Here

adulteration tests are not required at Kerafed because kera is its product. As

it has no profit motivation , question does not occur.

The oil content of oil cake obtained as a by-product is also tested.

Usually shelf life of any coconut oil is 6 months but kera oil has a shelf life of 1

year which speaks of the high standards of quality maintained.

Departmental Hierarchical of Quality Control department

Product Specification/ Oil Standard

Moisture % wt., Max. 0.25

Colour in 1/4 cell Lovibond Y+5R, not

Deeper than 4

Acid value, Max. 2.0

Unsap. matter % by wt., Max. 0.8

Polenske Value, Min. 0.8

IMK ADOOR Page 54

PLANT MANAGER

SUPERVISOR LAB

JUNIOR MANAGER (QC)

ANALYST

Organisation study at KERAFED

COMPETITIVE STRUCTURE OF

INDUSTRIES

(PORTER’S FIVE FORCES MODEL)

Entry Barriers Threat of New Entrants

Bargaining

Bargaining Power Power

Constraints On Pricing

The competitive structure of industries is a very important in

business environment .Identification of forces affecting the

competitive dynamics of an industry will be very useful in

formulating strategies

IMK ADOOR Page 55

POTENTIALENTRANTS

RIVALRY AMONGEXISTING FIRMS

BUYERSSUPPLIERS

SUBSTITUTES

Organisation study at KERAFED

According to Michel porter’s well known model of structural

analysis of industries ,the state of competition in an industry

depends on five basic competitive forces viz;

1 Rivalry among existing firms

2 Threat of new entrants

3Threat of substitutes

4 Bargaining power of suppliers

5 Bargaining power of customers

(A) Rivalry among Existing Firms

1. Number of Firms and their Relative

Market Share.

2. State of Growth of Industry.

3. Product Standardization and

switching Costs.

4. Diverse Competitors

5. Fixed or Storage Costs.

(B) Threat of New Entrants

1. Government Policy

2. Economies of scale

3. product Differentiation

4. Capital Requirement

5. Monopoly Elements

(C) Bargaining power of Suppliers

1. Extent of concentration and domination

in the supplier industry.

IMK ADOOR Page 56

Organisation study at KERAFED2. Importance of product to the buyer.

3. Importants of the buyer to the supplier.

4. Extent of substitutability of the product.

5. Switching cost.

(D) Bargaining power of customers

1. The volume of purchase relative to the

total sale of the seller.

2. The importance of the product to the

buyer in terms of the total cost.

3. The extent of standardization or

differentiation of the product.

4. Profitability of the buyer(low

profitability tends to pressure costs

down).

6. Extent of buyer’s information

(E) Threat of Substitutes

1. Unauthorized products

2.

Category Killers

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Organisation study at KERAFED

SWOT ANALYSIS

IMK ADOOR Page 58

Organisation study at KERAFED

CHAPER-5

SWOT ANALYSIS

Strength

1. Brand name ‘Kera’ – has a strong brand image.

2. Quality of products.

3. Most modern machinery for oil extraction .

4. Plants have adequate production capacity.

5. Strong network of primary co-operative societies in the state.

6. Product diversification is possible

Weakness

1. Policy formulation and decision making are much affected by

government interference and this result in delay of decision making

and implementation.

2. Use of coconut oil, edible oil is much less in North India. So the

market expansion on northern region restricted.

3. Many times Kerafed is forced to procure copra at a price greater than

the market price, as per the direction of Nafed.

4. Not utilizing the installed capacity of production units.

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Organisation study at KERAFED

Opportunity

1. A large portion of the rural population in Kerala is still using the

coconut oil obtained from the country chucks (not the brand oil) so

there is a huge market potential for brand coconut oil in the segment.

2. Advertisement and promotional activities the market can be

expanded to other states.

3. Primary agricultural co-operative societies and co-operative

marketing societies form a large network in the country. Through

proper coordination of the co-operative societies the federation can

enhance procurement and marketing.

4. Adequate support from Nafed, government of Kerala and other

agencies.

Threat

1. Unfiltered coconut oil obtained from country chucks are available

in market at low price.

2. There are some arguments that coconut oil as edible oil cause

health problems.

3. Heavy competition from private companies.

4. Liberal import policies of Government lead to cheaper substitutes

for coconut oil.

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Organisation study at KERAFED

IMK ADOOR Page 61

Organisation study at KERAFED

CHAPTER-6

SUMMARY OF FINDINGS:

1) The federation itself and the brand” kera” have a good reputation among

the keralite consumers.

2) Lack of professionalism in an age of competition.

3) The two oil mills manned and managed by the federation in

Karunagappally in Kollam district and Naduvannur in Kozhikode were

not utilizing the installed capacity of copra crushing operation.

4) Quality specifications of a global standard are adhered to by KERAFED 

stringently  at  all  stages of  production. Still the federation has not tried

for ISO certification.

5) The procurement of copra as per the recommendations of NAFED has

made the federation to collect and store copra at a price higher than the

market price. This resulted in loss.

6) KERAFED  gives maximum benefits to the coconut farmers and

at the same time provides high quality value added products to the

consumers.

7) KERAFED facing stiff competition in the market.

8) Little efforts for product diversification and expansion.

9) Not much concentration on exporting.

10)Lack of raw material in peak times

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Organisation study at KERAFED

SUGGESTIONS

1. The federation should start measures to get the ISO certification.

2. The marketing efforts should be increased especially advertisement

and sales.

3. Vigorous drive in raw material procurement besides full utilization of

the copra crushing units.

4. Developing and marketing more Value added products from coconut oil is

needed. Studies had proved coconut oil’s potential in the field of Cosmetics

and skin treatments , as a fuel for generating electricity, as a feedstock for

biodiesel , in the treatment of fungal infections etc.

5. Give more attention on export market.

6. Give promotions regarding more production of coconut, eyeing a

increased raw material supply in future through purchasing of green

coconut

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Organisation study at KERAFED

CONCLUSION

The study has covered “The Kerala Kerakarshaka Sahakarna Federation

Ltd”, (KERAFED) Thiruvananthapuram functions, its organizational

structure, the various departments of KERAFED, manufacturing of kera oil

etc its marketing activities and the quality control techniques adopted,

promotional aspects and other related marketing activities.KERAFED 

gives maximum benefits to the coconut cultivators and at the same time

provides high quality value added products to the consumers. KERAFED is

committed to setting high quality standards and maintaining them. The

brand “kera” enjoys good reputation in all markets. It continues to play a

dominant role as cooking oil in the Kerala market .While concluding my

project I express my faithful thanks to our respected teachers who have

helped us from beginning to the end of my project work . I also extend my

thanks to the entire staff of KERAFED and hope KERA conquers new

markets.

IMK ADOOR Page 64

Organisation study at KERAFED

BIBLIOGRAPHY

Journals

Annual Reports

Company records

WWW. Kerafed.com

IMK ADOOR Page 65