INTRODUCTION

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

OBJECTIVES OF THE STUDY

To know need and importance of cashew kernels as well as CNSL. To understand processes required for the production of kernels and CNSL. To know the adopted machines, equipments and tools used for processing and production. To know the number of functional departments working in the factory. To know major trading centre of cashew in India.

SCOPE OF THE STUDY

The scope of the study is limited to KVS&SONS Cashew Factory Mangalore. This study done was, mainly on production and marketing activities of cashew. And the information relating to the topic has been collected from production unit.
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METHODOLOGY
The study has been conducted at Mangalore. This project is based on primary data by personal consultation with the manager, supervision and staff members at KVS. The project is also relied on secondary data such as books, internet, and other reports of the business firm; hence information is collected from the factory under study by personally visiting.

RESEARCH INSTRUMENTS: The main research instruments

were; QUESTIONNAIRS: The information was collected with the help of questionnaires. DIRECT PERSONAL CONTACTS: Personal contacts with the

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

LIMITATIONS OF THE STUDY

Non availability of some information is the major limitation, which made the study difficult in completion of the report. It is expensive to complete the study. Generalization was not possible. Due to less time it was not possible to get more information. It is assumed that the respondents informant is accurate.

INTRODUCTION
Cashew (Anacardium Occidentale L.) belongs to the family Anacardiaceous. The Portuguese took this plant to the old world and planted it European countries. This was the time cashew started to become famous in the world. Portuguese were the one who introduced this crop into India mainly in Goa five centuries ago for wine and brandy production. It was also planted as it helped in binding the soil. The commercial importance of cashew nuts was not known at that time. The climate in here was well suited to the plant and it prospered in the other parts of the country too. Trading in cashews started as late as in 1920s. Cashew trees, which may live for Thirty to Forty years. Start bearing frit in the third or fourth year. They grow in warm regions, with an annual rainfall of 1000 to 3000mm, mainly in Central and South America, Asia and Africa. Native from Brazil, the cashew tree were planted in India in the 16th century to prevent soil erosion. Easily cultivated, they require little care and produce an annual average of 50 to 75 Kg of apples and nuts per tree, yielding approximately 3 Kg of cashew kernels. The cashew tree produces fruit and a by-product; the nutshell oil. The fruit consist of two parts: a pear-shaped stalk called the cashew APPLE which is an edible food rich in vitamin C. And it also mixed in fruit salads and a drink is prepared from the juice. Another part is that grayish-brown kidney-shaped nut (HS 0801.31), which is attached to the lower end of the apple and contains a slightly curved white kernel (HS 0801.32), wrapped in a thin brown skin or testa, sizes of which are measured in counts of between 180-240. The nutshell, which is smooth and oily, contains a toxic, resinous material from which is obtained the CNSL (Cashew Nut Shell Liquid).

ABOUT THE CROP-CASHEW FACTORS

1. Climate Cashew is essentially a tropical crop, grows best in the warm, moist and typically tropical climate. The distribution of cashew is restricted to altitudes below 700 m, where the temperature does not fall below 200C for prolonged periods, although it may be found growing at elevation up to 1200m.It is best adapted to the coastal regions. The cashew is hardy Sand drought resistant, but it is damaged by frost. 2. Rainfall Cashew is grown in areas with rainfall ranging from 6004500mm per annum. Fruit setting in cashew will be good if rains are not abundant during flowering and nuts mature in a dry period. 3. Temperature Cashew is sun-loving tree and does not tolerate shade. It can tolerate temperature of more than 360C for a shorter period but the most favourable temperature lies between 24C to 28C. The climate factors influence the cashew growth and production as follows: Dry spell during flowering and fruit setting ensures better harvest. Cloudy weather during flowering enhances scorching of flowers due to tea mosquito infestation. Heavy rains during flowering and fruit set damages production. High temperature (39-420C) during stage of fruit set development causes fruit drop.

4. Soil Cashew can be grown on a wide range of soils except heavy clay, water logged and saline soils. Well-drained red, sandy laterite soils are ideal for good growth and yield of cashew. 5. Varieties Selection of suitable cashew varieties for the specific region and appropriate package of practices determines the final yield. More than 30 varieties, which are having exportable grade of cashew kernels, are released from different research institutes in India and details are furnished separately. 6. Planting Material Selection of planting material is most important in cashew cultivation. Softwood grafting is only method which is commercially feasible and practically high successful in cashew. 7. Spacing The normal recommended spacing is 7.5*7.5m to 8*8m and spacing may be reduced up to 4m*4mdepends on type of soil managerial capacity. Method and Season of planting The square system of planting can be followed. The ideal time for planting is usually during monsoon season when the moisture is air surcharged (June-August) both in the west and east coast. If irrigation facilities available, planting can be done throughout the year except winter months.

8. Weeding Clearing the area by manually with in 2mtr radius of the trunk and slashing the remainder is essential until the trees shade out most of the trees. Weeding can be done by chemically also. 9. Training and Pruning It is the important horticulture practice to be employed to make better frame work of cashew plant. It helps to control growth and make easy for cultural practices. As an orchard management technique to improve the sanitation, removal of water shoots, lower branches, crisscross branches and dry branches are found to be beneficial to enhance flowering and the yield. 10.Irrigation In India cashew is grown mainly under rain fed condition. However protective irrigation especially summer months during January-March at fortnightly intervals at 200 liters/plant improve fruit set, fruit retention thereby increasing nut yield. 11.Inter cropping Intercropping received little attention in the cashew. Depending on soil &climatic condition and local situation annual vegetables like tapioca, pulses, turmeric ginger etc, can be grown as inter crops.
12. Plant Protection

Tea mosquito, stem borer, thrips, leaf minor and leaf blossom Webber are important pests of cashew. These cause economical damage in cashew. To control the pest, spry schedule
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involving 3 sprays synchronizing new flushing, flowering and fruit setting may be given with the following chemicals: Quinalphos (25% EC) -0.05% Carbaryl (50% WP)-0.01% Phosphamidon (85% WSC)-0.03% 13.Harvesting and Yield Economic bearing in cashew commences after 3rd year of planting. The ripened will fall down and nuts from fallen fruits have to be collected. Nuts can be dried in sun for 2 to 3 days on cement floor and can be stored in gunny bags. The yield starting from 1Kg in 3rd -4th year, yield goes on increasing as the canopy develops and one can expect more that 10Kgs,of nuts in 8 to 10 years old plant depending on management.

World Cashew Production

Cashew is produced in almost 32 countries of the world and now it has become the number one crop in world taking over almonds. According to estimates from the World Bank, around 97% of world cashew production comes from wild growth and small farms while the remaining 3% come from planned plantation. According to updated 2002 data received from the Food & Agriculture Organization (FAO), Vietnam became the highest volume producer in 2002 with 5,16,000 MT, followed by India with production of 4,60,000 MT. India, which had been the world's largest producer up to 2001 with an average yearly production of 4, 50,000 MT, followed by Nigeria, with 1, 76,500 MT, and Brazil 1,29,000 MT. In Ghana, there is an ongoing Government-supported investment project in cashew production under Ministry of Food and Agriculture through the cashew development project. This is to boost production and processing of cashew nuts for the local market and also as a means of poverty reduction. Under this project, the Government is providing funds for the purchase of improved seedlings for selected former co- operatives in 10 Districts located in 5 Regions namely Northern, Upper west, Brong Ahafo, Volta & Greater Accra. The total area in the world under cashew cultivation figures up to 35.1 lakh hectares. And the world production figures of this crop hover around 22.5 lakh tons per year. And the major raw-cashew producing countries are; Vietnam, India, Brazil, Nigeria, Indonesia, Tanzania, Cote de Ivoire, Guinea, Mozambique, Benin, Thailand, Malaysia, Kenya, Ghana. And the major cashew consuming countries in the world leaded by United States of America are;

 United States Of America European Union India

Cashew Production In India

India has always been a major player in the production of cashew. The Indian production of cashews contributes to around 4.6 lakh tons per annum. It is the second largest producer of raw-cashew in the world but conquers the 1st place among the largest producing countries of cashew kernels and also in the maximum area covered that figures to the 7.70 lakh hectares currently. The country provides with around 55% supply of cashew kernels in the world. The major states in India in which cashew are cultivated are; Kerala Karnataka Goa Maharashtra Andrapradesh Tamilnadu Orissa West Bengal Maharashtra stands 1st among the main cashew producing states in India followed by Andrapradesh & Orissa. The country also is the 3rd largest consumer of the food product in the world after United States of America & European Union as it consumes over 3 million cartons per annum
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Major trading centers of cashew

The major trading centers of cashew in India are; Palasa Kollam Mangalore Quilon Kochi INDIAS TRADE RELATION WITH OTHER COUNTRIES The climate in the country suited the crop so well that it spread along in all the direction of the continent. India became the leader in the cashew production till in 2002, its dominating position was taken over by Vietnam. The country is still the second largest country producing raw-cashew nuts. It is also is the largest country producing cashew kernels, the largest country indulging in the processing of this food product and the largest exporter of cashews in the world. India imports small quantities raw cashew nuts from the African countries so as to meet the international demand for Indian processed cashew kernels. Cashew industry is directly connected to the growth of the economy as India earns a good amount of foreign exchange by exporting cashews. Cashew ranks second among the horticultural commodities exported from India. This industry also gives employment to around 3 lakh people in the country and the demand for Indian cashews is quite large due to qualitative edge over other countries. India earns more than 200 million $ a year by

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exporting 40 to 50 thousand tons of cashew kernels and the countries trade links are spread over 40 countries. The major countries that import Indian cashew are; United States Of America Netherlands United Kingdom United Arab Emirates Japan France Saudi Arabia Spain Russia Germany Canada Greece

PRODUCTION DISCRIPTION
The Indian market for cashew nut classified under the code below; HS080131 Cashew nuts (Fresh or dried, in Shell).

Product name

German English French Spanish Scientific

Cashewnsse (Kaschunsse), Cashewkerne Cashew nuts, cashew kernels Noix de cajou, Noix d'arabie Anacardos Anacardium occidentale

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CN/HS number

0801 30 ff.

Cashew nuts are the stone fruits of the cashew tree, which grows to a height of up to 12 meter and belongs to the sumach family (Anacardiaceae). Cashew nuts are shell fruit (nut types). Because of their similar characteristics with regard to transport, particularly their high oil content, their requirements regarding care during storage and transport are the same as those of oil-bearing seeds/fruits. Cashew nuts are classed as follows: 1. Cashew apple

The cashew apple, at up to 9 cm in length, is the pear`shaped, swollen, soft, shiny yellow or red, fleshy stem of the cashew nut proper. The cashew apple itself is not suitable for transport and storage. 2. The cashew nut

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The cashew nut is a stone fruit, which grows out of the bottom of the cashew apple, is approx. 2 - 2.5 cm long, kidneyshaped, yellowish-reddish in color and has a hard shell with a single kernel with a delicate aroma. It is removed from the cashew apple after harvesting and sun- or hots air-dried, the shell then becoming detached to reveal the kernel proper. 3. The cashew kernel

This is surrounded by a fine, brown seed coat, which contains antioxidants which protect the kernel from penetration by atmospheric oxygen so preventing it from becoming rancid (oxidative rancidity). Cashew nuts are also known as Anacardium nuts.

Countries of origin
This Table shows only a selection of the most important countries of origin and should not be thought of as exhaustive. Africa Asia America Mozambique, Tanzania, Kenya, Egypt India, China Mexico, West Indies

Active behavior
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The high oil content of the goods frequently causes dark fat stains to appear on the bags, which must therefore be kept from coming into contact with goods sensitive to contamination, such as baled goods, tea chests, marble etc. Cashew nuts in bags must not be stowed together with fibers or fibrous materials, either, since oil-impregnated fibers accelerate selfheating processes. Passive behavior Cashew nuts are sensitive to dust, dirt, fats and oils. The holds or containers must accordingly be clean and in a thoroughly hygienic condition before loading.

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OVERVIEW OF CASHEW FACTORY

K. Vishwanath Subraya Kamath founded KVS Kamath &Sons in the year 1980. Apart from the Mangalore factory, another factory has been subsequently set up in Munchoor with the name Vignesh Industry. Vishwanath Kamath fathers Subraya Kamath was the pioneer in the cashew processing. Mangalore factory is managed by Jairam Kamath, who is the youngest son. The overall process at KVS is divided into 3 sections; Cutting, Peeling, and Grading. 100 workers are working in cutting section, 90 workers are doing peeling work. And there 30 members are doing grading of kernels. All they are given piece rate wages. 5 supervisors, an accountant, computer operator are working inside of the KVS.

OBJECTIVES OF KVS CASHEW FACTORY

To extract the healthy, tasty kernels from the raw nuts in the shell. To produce shell oil that is CNSL. To provide employment opportunities. To utilize best technologies. Attainment of the target. Mission Process the raw nuts to most efficient way. Add value to the product to reach the retail consumer.

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Initial Capita The KVS&SONS cashew factory established in the year 1980 and the business commenced for Rs-1, 00,000. During the year 1987 and 1993 factory was in loss to their production, now they make profit. Location &site KVS&SONS cashew factory was situated at Shakthi Nagar, Kulashekhara Road, Mangalore. Product produce The main product of KVS&SONS factory is the cashew kernels and by-product obtained are cashew shell liquid and shell cake. Means of finance The Factory has been partly financed by Axis Bank and Syndicate Bank. Wage System The factory follows both the piece wage and time wage system. In the cutting and peeling section piece wage system and in other section time wage system is adopted. Working Hours Factory starts work at 8-30 am & up to 5-30pm. Sunday is a holiday. Wage paid to workers weekly that is Saturday.

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Labour Welfare Measure

Dearness Allowance-15.30% Provident Fund ; Employers-12% Employees-12% ESI: Employer-4.57% Employees-1.75%

Capital Inputs
Land and building The built up area requirement is around 100 sq.mtrs. And to limit the expenditure and save time, it is advisable to buy a suitable readymade shed which would cost around Rs.2.50lakh. Machinery It is advisable to install rated processing capacity of 75 tons per shift considering working of around 200-220 days every year. This would require following equipments. Miscellaneous Assets Some other assets like furniture and fixtures, storage racks, working tables etc. shall be required for which a provision of Rs.40, 000/-is adequate. Utilities Total power requirement shall be 30HP Where as water shall be required for potable and sanitation purposes.

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Item Qty Oil expeller complete with all accessories, electric 1 motor& other electrical. Filter press with plunger pump, electric motor 1 accessories MS Storage Tanks Weighing scales, Laboratory equipments etc Total 2

Price(Rs.) 2,00,000 50,000 20,000 30,000 3,00,000

ORGANISATION STRUCTURE
MANAGING DIRECTOR

MANAGER

CUTTING DEPARTMENT SUPERVISOR

PEELING DEPARTMENT SUPERVISOR

GRADING DEPARTMENT SUPERVISOR

FINANCE DEPARTMENT ACCOUNTANT

Cutter

Cutter

Peeler

Peeler

Grader

Grader

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INTRODUCTION
Among all functional areas of management, production is considered to be critical in any industrial organization. Production is the process by which raw-materials and other inputs are converted into finished products and output. So production includes creation of both tangible goods as well as intangible services. The application of management principles to the production process or functions in a factory is called the production management. And the factory is a place where the factors of production such as land, Labour, money& enterprise are grouped together for the creation of goods and services.

PRODUCTION IN KVS FACTORY

The main products of KVS&SONS factory is the cashew kernels and by-product shell oil. The cashew nuts can be consumed as roasted and salted, or used an ingredient in confectionery and bakery products such as sweets, ice creams, cakes, and chocolates. The raw-cashew nut shell contains around 20% oil. When cashew nuts are processed by oil extraction process, about 50% oil is extracted. Balance oil or liquid is known as CNSL. RAW-MATERIAL The only raw-material used for the production is the raw cashew nuts from the local & foreign markets. Purchasing period is from February to March in local markets. It also collects raw nuts by importing from Indonesia, Benin, Ivoire.

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MACHINES NEEDED FOR PROCESSING The important machines needed for cashew processing are;
Bruioir Roaster:

Fitted with an electrical heater, it also has a space for a kerosene burner. The rotary drum with cross blades gives uniformity and a quick discharge of materials into the cooling tray. The automatic stirrer moves and discharges the roasted material to the final storage tank. The colour changes can be seen through a viewfinder. Requires between 0.5 and 1.5 HP. Depending on the model. Sheller A small tool for bench use with a specially shaped blade set. The complete nut is placed on the lower blade and when the spring- loaded handle is depressed, the upper blade is pushed down into the shell. The handle can then be pushed sideways to exert a twisting motion on the shell and thus open it. Dryers Drier is essential to avoid under drying or scorching. The shelled kernels are dryed properly with the help of dryers, before the peeling process. Peeler The machine used for peel the testa which is attached to the kernels. Trolley Usually materials are handled by man itself. In certain sections trolleys are used for moving the materials.

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CASHEW NUT PROCESSING

The objective of cashew processing is to extract the healthy, tasty kernel from the raw nuts in the shell. Most modern factories are designed to obtain the maximum number of whole nuts and as much shell oil as possible. The cashew fruit is unusual in comparison with other tree nuts since it is outside the fruit. The cashew apple is an edible fruit, attached to the externally born nut by a stem. In Brazil, the apple is used to manufacture jams, and soft and alcoholic drinks. In Goa it is used to distil cashew liquor called feni. In its raw state, the shell of the nut is leathery, not brittle. It contains the thick vesicant oil, CNSL, with in a sponge-like interior. A thin testa skin surrounds the kernel and keeps it separated from the inside of the shell. The primary products of cashew nuts are the kernels which have value as confectionery nuts. Cashew nut shell liquid (CNSL) is an important industrial raw material for resin manufacture and the shells can be burned to provide heat for the decorticating operation.

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Traditionally, extraction of the kernel from the shell of the cashew nut has been a manual operation. The nut is roasted which makes the shell brittle and loosens the kernel from the inside of the shell. By soaking the nuts in water, the moisture content of the kernel is raised, reducing the risk of it being scorched during roasting and making it more flexible so it is less likely to crack. The CNSL is released when the nuts are roasted. Its value makes collection in sufficient quantities economically advantages. However, for very small-scale processors, this stage unlikely to take place due to the high cost of the special roasting equipment required for the CNSL collection .If the nuts are being manually shelled, gloves need to be used or alternatively, the nuts should be tumbled in sawdust or ashes to absorb the liquid coating which has a harmful affect on the skin.

The shell can be cracked either manually, using a hammer, or mechanically. Manually operated blade openers are relatively inexpensive; however the more successful mechanical methods depend on the nuts having passed through the Hot oil CNSL
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extraction operation. Care must be taken not to break or split the kernel at this or subsequent stages as whole kernels are more valuable than broken ones. Once the kernel is removed from the shell, it is dried, the testa is peeled off and the kernel is graded. Thus the cashew nut processing can be sub divided into a series of steps. 1.Cleaning All raw nuts carry foreign matter, consisting of sand, stones, dried apple etc. The presence of foreign matter in the roasting operation can be avoided by cleaning the nuts. The raw nuts can be sieved by hand using 3/4inch mesh sieve. 2. Soaking The next stage is to soak the nuts in water to avoid scorching them during the roasting operation. This can be done by placing the nuts in a 40-45 gallon drum or vat and filling it with water until all the nuts are covered. After being left to stand for about ten minutes, the water should be drained off via a plug near the base of the drum. The nuts should then be left for periods of not less than four hours in order to allow the water left on the surface of the nuts to be absorbed. The process of covering the nuts with water, draining and standing should be repeated with the same nuts about three times until a moisture content of 9% is reached. Where the production output runs from 2-10 tones of nuts per day, a simple cleaning and conditioning arrangement can be used. Two people open the sacks of harvested nuts on stand and clean the raw nuts as they are moved along a flat sieve, to two vats which are used for storage until the soaking process begins. Two vats are useful because one can be emptied while the other is being filled.
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3. Roasting The simplest roasting method is to heat the nuts for about a minute in an open pan with holes. Acid fumes are released and if the nuts should catch fire the flames can be doused with water. A more efficient method is to use a slanting perforated cylinder that is rotated above a fire. The shell oil flows through the holes in the cylinder and is collected in a catch through. After the roasting process the nuts are dumped into ash or sawdust to remove the excess shell oil still clinging to the shells. The application of heat to the nut releases the nut shell liquid and makes the shell brittle which facilitates the extraction of the kernel when breaking the shell open. Three methods of roasting exist: open pan, drum roasting and the Hot oil method. The latter is more suitable to medium-scale operations with associated higher equipment costs and viability of CNSL collection. Open pan: An open, mild steel, circular dished pan of around 2 feet in diameter is supported on a basic earth fireplace. When heated, 2-3lbs (1 Kg)of nuts are placed on the pan at one time and stirred constantly. The CNSL starts to exude and then ignites. This produces a long flame and black smoke. After approximately two minutes, the pan is dowsed and the charred, swollen and brittle nuts are thrown out of the pan. The moisture evaporates quickly leaving the nuts ready for shelling. Drum Roasting:

The idea of continually feeding the nuts into a rotating drum over a fire developed from the pan method. A slight horizontal slope in the
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mounting ensures movement of the nuts through the drum. The drum is pierced so that the flames touch the nuts and the smoke is controlled by a hood and chimney arrangement. The nuts are dowsed using a continuous spray. This process was further modified by using the heat from the burning CNSL being harnessed to roast the nuts some more. The roaster consists of a contained helical screw which moves the burning nuts at a controlled rate. The design was a distinct improvement, with little fuel being consumed and there being greater control on the roasting time.

Hot Oil Method: The principle employed in this method is that oil-bearing substances i.e., the shells, when immersed in the same oil at high temperature, will lose their oil, thus increasing the volume of the oil in the tank. For this method, conditioning becomes important. The equipment consists of a tank of CNSL heated to a temperature

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of 185-190C by a furnace underneath and a wire basket used to hold the nuts for immersion into the tank. The depth of basket must be sufficient so that the rim remains well above the oil during the roasting. Immersion time can range from 1 to 4 minutes. About 50% of the liquid is extracted from the nuts. Draining trays are needed at the end of the tank for the roasted nut 4. Shelling The objective of shelling is to produce clean, whole kernels free of cracks. In India, this operation has been done manually. Other countries have difficulty in competing with the great skill and the low wages of the Indian This is the most difficult operation in cashew processing. In India shelling is mostly done by cheap female labour. Shelling is carried out by using special wooden mallets and pieces of bent wire, at a rate of about 200 nuts per hour. Manual Shelling Method In the manual shelling process, the nuts are placed on a flat stone and cracked with a wooden mallet. As mentioned above, because of the residue CNSL, wood ashes for covering the shells or gloves are required. An average sheller can open one nut in about six seconds or ten nuts per minute. In an eight-hour working day, this amounts to about 4,800 nuts or about 5kg of kernels. At an extraction rate of 24%, this quantity corresponds with about 21kg of raw nuts per day or about 7 tons per year. However, experienced shellers in India can produce around half as much again, with a quality of 90% whole kernels.
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Mechanical Shelling Method Mechanical shelling methods are difficult to design because of the irregular shape of the nut, hardness of the shell and brittleness of the kernel. In some mechanical processing plants compressed air is used to crack the nuts. The latest Windmer and Ernst method is to cut a groove around the shell and to place the shell in a modified centrifuge fitted with mental plates. The nuts are thrown against the plates and cracked by centrifuge forces when the machine spins. It is possible to obtain 85% whole kernels with this method. Removal of the testa: Before the thin, papery seed coat (testa) can be removed, the kernel must be dried. Nuts are dried on big racks in an over at 70C.The testa becomes dry and brittle and is easily removed. The remaining traces of membrane are removed with bamboo knives. Modern factories use electronic machines to detect nuts with pieces of remaining testa which are then sorted and cleaned by hand. The most successful mechanical shellers work on a nut which have previously passed through the hot oil process and is detailed under the paragraph centrifugal shellers. A semi-mechanised process that has been used predominantly in Brazil uses a pair of knives, each shaped in the contour of half a nut.

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When the knives come together by means of a foot operated lever, they cut through the shell all around the nut, leaving the kernel untouched. Two people work at each table; the first cuts the nuts and the second person opens them and separates the kernel from the shell. production is about 15kg of kernels per team. The first mechanised shelling system, Oltremare, is also based on two nut-shaped knives. The nuts are brought to the knives on a chain, each nut in the same position to fit between the knives. The nuts are pushed between the knives and cut. The chain itself has to be fed manually. After coming together, the knives make a twisting movement, thus separating the shell halves. The disadvantages of this method are that nuts smaller than 18mm cannot be processed and output is reduced because not all the spaces on the chain can be filled which can count for as much as 10% of the production volume. The shelling machines of the Cashco system are also chain fed but the nuts are automatically placed in the right position. The shelling device has two knives that cut the sides of the nut and a pin that is wedged into the stalk end of the nut separates the shell halves. The advantage of this system is a fully mechanised operation with an output of about 75% whole kernel qualities. Nuts smaller than 15mm cannot be processed. Centrifugal shellers use a system which is simple and enables a continuous flow. A rotary paddle projects the shells against the solid casing and the impact cracks open the shell without breaking the kernel. All sizes of nuts can be processed by this method; however, it is necessary to grade the nuts into four or so group ranges because a different rotary speed is used for the various size groups. The percentage of whole kernels produced is around 75%. By preparing the shells with grooves and weakening the strength of them before the operation begins,
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Daily

the percentage can be increased. The speed of the rotor can thus be turned down and the risk of damaging the kernels is reduced. Separation After shelling, shell pieces and kernels are separated and the unshelled nuts are returned to the shelling operation. Usually blowers and shakers are used to separate the lighter shell Pieces from the kernels. The greatest problem is to recover small pieces of kernel sticking to the shell. This is usually done manually from a conveyor belt used to carry all the sorted semi-shelled nuts. Pre-grading Pre-grading can be done before or after drying the kernels and may greatly reduces the final grading work. For large-scale processors pregrading can be done mechanically, separating mainly the whole from the broken kernels and sometimes separating the different size groups of whole kernels. 5. Drying Harvested nuts are dried in the sun for a few days. Properly dried nuts can be stored for 2 years before being shelled. Nuts are roasted to discharge the caustic shell oil and acrid fumes. Hand shelling is impossible if the shell oil has not been removed previous. Kernel must be protected from contamination by the shell oil has because it would cause blisters in the mouth and throat when eaten. Before the nuts are roasted they must be soaked in water-the moisture in the shell facilitates the rupturing of the cells containing shell oil and retaining it in the shell. Moisture makes the kernel slightly rubbery and limits breakage of the

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kernels. The easiest method to wet the shells is to heap the nuts into big piles and to use sprinklers intermittently. Steam may also be used. The shelled kernel is covered with the testa and to facilitate removal, i.e. to peel in order to produce the blanched kernel, the shelled kernel is dried. This also protects the kernel from pest and fungus attack at this vulnerable stage. The moisture content is approximately 6% before drying and 3% after. It is important that the drying capacity is higher than the shelling capacity in case of periods of heavy rainfall because the drying operation will be lengthened since the kernels will absorb the moisture very quickly. Sun drying, where the kernels are spread out in thin layers under strong sunshine is possible; however artificial drying becomes necessary for medium or larger-scale producers. Drying usually takes six hours, at a temperature of around 70C. A uniform temperature throughout the drier is essential to avoid under drying or scorching. And 6 shows an ITDG tray dryer, details of which are available on request. It is in the dried condition the kernels are most vulnerable, being both brittle and susceptible to insect infestation. Therefore, at this stage, they must be handled with care and moved to the next stage of peeling as quickly as possible. 6. Peeling At this stage, the testa is loosely attached to the kernel, although a small amount of kernels may have already lost the testa during the previous operations. Manual peeling is done by gentle rubbing with the fingers. Those parts still attached to the kernel are removed by the use of a bamboo knife. One person can peel about 10-12kg of kernels per day.

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The mechanised processes of peeling differ widely. They include air-blasting, suction, a freezing operation and a system of rubber rollers. The operation has a low efficiency due to the difficulty of removing the testa and the amount of breakages can be as high as 30%. Currently research and development is taking place to improve the viability of the mechanization of this operation. 7.Grading The grading operation is important as it is the last opportunity for quality control on the kernels. With the exception of a few grading aids, all grading is done by hand. Power driven rotary sieves are one mechanical method, another being two outwardly rotating rubber rollers aligned at a diverging angle. For a large operations looking towards export markets, it is necessary to grade the kernels to an international level. Kernels, whole and broken, are sorted into 6 grading schedules. There is only a demand for broken or dark and unevenly roasted kernels.

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Rehumidification Before the kernels are packed it is necessary to ensure that their moisture content rises from 3% up to around 5%. This is to make the kernels less fragile, thus lessening the risk of breakage during transport. In humid climates, the kernels may absorb enough moisture during peeling and grading to make a further Rehumidification process unnecessary. Packing 8. Packing MS barrels shall be required for packing, for which prior arrangements need to be made. Jute/PP(Poly- Propylene) woven bags of 50/25Kg used as export standard, bearing the following labeling requirements: Name of the product Country of origin Name of importer Net weight

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PROCESSING OVERVIEW

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CASHEWNUT SHELL LIQUID INTRODUCTION

Cashew nut Shell Liquid (CNSL) is a honey comb structure containing dark reddish brown viscose liquid. It is a by-product of the cashew industry which is the pericrap fluid of the nut. It is considered to be better as well as cheaper material for unsaturated phenols. It is exported to countries like Japan and Korea and its domestic use is also increasing. Konkan region of Maharashtra could be an ideal location as there are many manuals and few mechanized cashew processing factories in the region. Likewise, there are several processing factories in adjoining Goa state as well. Kerala can also be an ideal location.

MANUFACTURING PROCESS
The process is well-established as extraction of oil by expeller process is practiced since long. Cashew shells are fed to the expeller to extract remaining oil. Oil thus obtained, is filtered with the help of a filter press and then weighed and packed in MS barrels. Recovery of oil is around 20%. This is known as untreated CNSL. Its colour should be dark reddish brown when viewed by transmitted light. This oil can further treated to remove metallic impurities and trace of sulphur compounds. Specification for Cold Pressure Cashew nut Shell Liquid Cashew nut shell liquid is also produced by the 'Cold Pressed' method in solvent extraction plant. Cashew nut Shell Liquid is a byproduct of the cashew industry. The nut has a shell of about 0.1 inch thickness inside which is a soft honeycomb structure containing a dark reddish brown viscous liquid. It is called the cashew nut shell liquid,

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which is the pericrap fluid of the cashew nut. Cashew nut shell liquid is a natural product that is used as raw material for the synthesis of wide variety of polymers and water resistant resins. We have carved a niche as one of the most distinguished natural cashew nut shell liquid suppliers in India. In addition to this, the natural cashew nut shell liquid supplied by us finds numerous applications in the industries like automobile, paint and so on and so forth.

Specification for Treated Cashew nut Shell Liquid The cashew nut shell liquid as extracted has a strong vesicant dermatatic action. Before this liquid is utilized for preparation of resins, it requires treatment to get rid of metallic impurities as well as traces of sulphur compounds. The liquid thus treated is known as Treated Cashew nut Shell Liquid ".

CHEMICAL STRUCTURE C.N.S.L

Cashew nut shell liquid or CNSL or Cashew Nut Oil or Cashew Shell Oil or CNSL Oil is a versatile by product of the Cashew industry. The nut has a shell of about 1/8 inch thickness inside which is a soft honey comb structure containing a dark reddish brown viscous liquid. It is called CASHEW NUT SHELL LIQUID or CNSL. This is the pericrap fluid of the Cashew Nut. It is often considered as the better and cheaper material for unsaturated phenols. CNSL has innumerable applications, such as friction linings, paints, laminating resins, rubber compounding resins, cashew cements, polyurethane based polymers, surfactants, epoxy resins, foundry chemicals, and intermediates for chemical industry. It offers much scope and varied opportunities for the development of other tailor-made polymers.
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Cashew Nut Shell Liquid has innumerable applications in polymer based industries such as friction linings, paints and varnishes, laminating resins, rubber compounding resins, cashew cements, polyurethane based polymers, surfactants, epoxy resins, foundry chemicals and intermediates for chemical industry. It offers much scope and varied opportunities for the development of other tailor - made polymers. There are more than 200 patents on CNSL for its industrial applications.

CNSL undergoes all the conventional reactions of phenols, CNSL aldehyde condensation products and CNSL based phenolic Resins are used in applications such as surface coatings, adhesives. Various polyamines synthesised from CNSL are used s curing agents for epoxy resins. CNSL and its derivatives have been used as antioxidants, plasticizers and processing aids for rubber compounds, modifiers for plastic materials and used to provide oxidative resistance sulphur-cured natural rubber products. It is also added to rubber gum stock or nit

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riles rubber to improve the processability, mechanical properties and resistance to crack and cut properties of the vulcanisates. A number of products based on CNSL are used as antioxidants, stabilisers and demulsifies for petroleum products. Soluble metal derivatives of C.N.S.L are used to improve the resistance to oxidation and sludge formation of Lubricating oils. Oxidised CNSL and its derivatives are also used as demulsifying agents for water in oil type petroleum emulsions. CNSL or CASHEW NUT SHELL LIQUID OIL used for manufacturing of CNSL Resin, Cardanol or Card Phenol or Cashew Phenol, Cashew Friction Dust, Anti corrosive hiring (lining) chemicals, Paints, Varnishes, Enamels, Insecticides and Fungicides, Cashew Lacquers, Bakelite, Electrical conductress, Cashew Cements, Core Oil, Red Oxide, Wood, Fuel, Specialty Chemicals, Foundry Chemicals Industries. and many other

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Cashew Nut Shell Liquid, Specifications :

Specific Gravity 300 C Viscosity 300 C in centipoises Matter insoluble in toluene weight

: 0.950 - 0.970 : 250 max. (Last tested 160) : 1.0 :1.0 :2 : 1.0 : (min.) : 250 : 375

Moisture by weight

Loss in weight on heating Ash % by weight Iodine Value

a) Wijs Method

b) Catalytic method

Polymerization:
a) Time in Minutes kg Drums/Barrels or Bulk Tank. Only Serious Buyers, who wish to purchase Superior Quality, are requested to contact us. : 4 We Offer good quality Cashew Nut Shell Liquid, Packing in 200

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ADVANTAGES
Advantages of CNSL based Polymers Improved Flexibility and reduced brittleness. Solubility in Organic Solvents. Improved Processability. Low Fade Characteristics for Friction. Resistance to 'Cold Wear'. Good Electrical Resistance. Better Water Repellence. Improved alkali and acid resistance. Compatibility with other polymers. Antimicrobial Property. Termite and Insect Resistance. Structural Features for Transformation into High Performance Polymers.

Polymerisation Characteristics of CNS

CNSL can be polymerized by a variety of methods :

Addition Polymerisation through the side chain double bonds using cationic initiators such as sulphuric acid, diethylsulphate etc.

Condensation Polymerisation through the phenolic ring with aldehydic compounds. Polymerisation after Chemical Modification to introduce speciality properties. Oxidative Polymerisation. Various Combinations of the above.

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Industrial Significance of CNSL Low Cost Phenol. Versatility in Polymerisation and Chemical Modification. Possibilities for Development of High Performance Polymers. Property advantage over phenolics in certain applications such as impact resistance, flexibility, faster heat dissipation etc.

CASHEW NUT SHELL CAKE

Empowered with robust infrastructural base and qualified team, we bring forth an ample assortment of high quality cashew nut shell cake. We are well reckoned as one of the supreme De-Oiled cashew shell cake exporters and manufacturers in the national and international market. Crushed cashew nut shell cake provided by us is highly acclaimed for quality and performance. Widely used by tile manufacturing, cashew and many more industries, our cashew nut shell cake is the perfect blend of long lasting shelf life

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with efficiency. We deliver crushed cashew nut shell cake within the stipulated time frame and that too at very reasonable price. It is one of the best fuels. It is mainly used by cashew industries, tile manufacturing units and others. The chemical analysis of the cashew shell oil cake is as follows The Cardanol Resin Plants offered by us is based on cashew nut shell liquid. These Cardanol Resin Plants are used in the processing of alkyd and Cardanol in 5 TPD and 1500 TPA capacity. These plants are manufactured in conformation to the international standards and are known for easy installation, high capacity, durability and outstanding quality.

Specifications:
Resins TPD ALKYD Resin From CNSL Cardanol From CNSL 5 5 CAPACITY TPA 1500 1500

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INRODUCTION
Market is place where goods are bought and sold. But today market means anybody of people who are in intimate business relation and carry on extensive transactions in any commodity. Marketing is concerned with the flow of goods from the point of consumption. It means distribution of goods from the producer to final consumers. And it does not mean mere transfer of goods from seller to buyers. Thus it is an all activities involved in the creation of place, time, possession, knowledge and utility.

MARKETING OF CASHEW NUTS

Marketing of raw cashew nut in India has not yet been organized in systematic manner except in Goa where co-operative marketing society is procuring raw nuts to the little desired extent. A major portion of the produce is brought by itinerant merchants and the agents of the processing units. A number of wholesale merchants and processing factories open their collecting centers in important cashew producing areas during the harvesting period. The petty dealers who buy the nuts from the growers also dispose the nuts in these collecting centers. Cashew nuts are brought for sale to the assembling markets largely by the itinerant merchants. In certain areas, the most resourceful processors contact the producers thus avoiding the commission agents role and enjoy good bargaining power by providing credit facilities to the producers.

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CHARACTERISTICS OF MARKETING
It is surrounded by needs of consumer. It is business and business is marketing. It focuses on goods, services, and needs. It focuses on the delivery of value to the others. It deals with products, distribution, promotion and pricing.

MARKETING CHARACTERISTICS OF CASHEW NUT

The food processing industry is the major traditional consumer of cashew nuts in confectionery and bakery products such as sweets, ice creams, cakes, and chocolates. The most popular cashew nuts imported are white whole kernels of count 320. Nuts are usually roasted and salted by European processors in order to meet the taste requirements of individual markets. Between 1999-2003 both in import trend in value and quantity for Indian imports have increased by 4% and 18% respectively. Recognized buying agents do the networking and aggregate nuts from producers for the exporters on contract bases. The exporters in most cases provide funds in advance for the purchases on agreed terms. These transactions are however based on mutual trust between the exporter and the agent. Average minimum prices are determined by exporters after negotiation with principals of importing companies based on world market prices at the beginning of the season. India is the major importer of Ghanaian cashew nuts though Vietnam and Hong Kong have also recorded small volumes. No import duty is levied on cashew nuts to the EU. However, India applies 35% levy on imported cashew nuts.
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FUNCTIONS OF MARKETING
A marketing function may be defined as An act or operation or service by which original producer and final consumers are linked. In other words concentration, dispersion and equalization are collectively known as marketing functions. The scope of marketing can be shown as follows:

MARKETING FUNCTION

FUNCTION OF EXCHANGE

FUNCTION OF PHYSICAL SUPPLY PACKAGING STORAGE TRANSPORTATION

FACILITATING FUNCTION FINANCE RISK BEARING STANDERDISATION GRADING PRICING ADVERTISING SALES PROMOTION

BUYING ASSEMBLING SELLING

FUNCTION OF EXCHANGE
The process of movement of goods from producer to consumer is called exchange. The important functions of exchange are; 1. BUYING It is the first function of marketing. It is concerned with procurement of raw-materials by manufacturer and final goods by wholesaler& retailers.

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KVS factory collects raw- cashew nuts from the local as well as from foreign markets. The factory makes import from Indonesia, Benin, Ivoire. 2. ASSEMBLING It is concerned with collecting and concentrating goods of the same type from the different sources or it is the process of collecting raw-material from various sources to a common point as a part of the production process. 3. SELLING It is concerned with transfer of goods from producer to traders and from traders to consumers. Under this function ownership of goods is transferred from the seller to the buyer. The selling is a part of marketing and seller directly interacts with the customer. It is at this point that marketing action takes place. KVS products are marketed at Bombay, Delhi, Ahmadabad, and Hyderabad, Bangalore in domestic and exported to Gulf, USA, Japan, and Singapore UK etc.

FUNCTION OF PHYSICAL SUPPLY

1. PACKAGING In simply it is the process of wrapping the products in order to protect goods from damages. Packaging is traditionally done to protect the goods from damage in transit and to facilitate easy transfer of goods to customers. But now it is also used by the manufacturer to establish his brand image as distinct from those of his rivals. Another activity connected with packaging is LABELLING. It is putting identification marks on the package. Label is an important
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feature of a product. The label is used to communicate brand, grade and other information about the product. The major labeling requirements: Name of the product Country of origin Name of importer Net weight

CASHEWNUT PACKING
The normal packaging for export of kernels is in air-tight tins of 25 lbs in weight. The packing needs to be impermeable as cashew kernels are subject to rancidity and go stale very quickly. The tin will be familiar to most tropical countries as it is a replica of the four gallon kerosene or paraffin oil tin. If possible the tins are made locally as movement of an empty tin overseas is expensive. Alternatively, it might be arranged to purchase components and finish the manufacturing locally. This may be done by arrangement with tin manufacturers. The output of a tin manufacturing line is usually too large for one consumer but some cashew nut other processors have in fact installed their own tin making plant and supply other processors. After filling and weighing, the cap should be soldered on in preparation for the vita pack process. This consists of removing all air from the tin and substituting this with carbon dioxide (CO2).The advantages of packing cashew kernels in carbon dioxide are twofold. Firstly, carbon dioxide is an inert gas and will not support life. Any infestation that may have been present is, therefore, arrested. Secondly, carbon dioxide is soluble in cashew oil and goes into solution as soon as

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the seals are made. In a short space of time, it can be seen that a decrease in pressure takes place as the carbon dioxide goes into solution and the sides, top and bottom are drawn inwards. Thus the kernels are held tight in the tin, preventing movement and breakage during transport. Carbon dioxide, being a heavy gas causes the upward displacement of air and will remain in the tins after the filling process. Some large-scale machines will operate on six tins at a time, creating a vacuum in each and then filling with carbon dioxide.

The Some processors do not have vacuum pumps and displace the air in the tin by feeding in carbon dioxide through a small hole in the bottom of a side of the tin. The carbon dioxide valve is turned off when all the air has been replaced. The holes in the tin are then sealed, with the hole at the bottom of the side of the tin being done first, and the one on the top last. Secondary Packaging A packaging solution is incomplete without some means of decorating your product, protecting it and supplying important

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information. We offer machines for Labeling, Cartoning, Coding, etc, to complete the job. Inspection Systems To keep your consumer happy and safe, packages have to be contaminant free. Metal Detectors, X-Ray systems and Vision systems do the job admirably. Check Weighers verify contents and if required can provide real-time feedback to filling equipment for weight correction.

Product Handling and End of Line Packaging

Many a time, packaging line efficiencies are low due to poorlydesigned product handling systems. At Clear pack we give special attention to product handling system design. We have different types of case packers, including bottom load, end/side load, top load and wrap around, with various speeds from low to high (up to 100+ cases per minute). Low-end, semi-automatic case packers are also available. We also have a full range of case palletisers, including robotic arm, low level, and high level and Gantry type. Speeds range from low speed to high speed (Up to 200 cases per min). 2. STORAGE AND WAREHOUSE Storage refers to holding goods for the purpose of preserving them through out the year. Goods must be stored properly in warehouses to protect them from any damage which may be caused by ants, rats, moisture, sun, theft, etc, till they are sold out. 3. TRANSPORTATION It is the physical movement of goods from the point of origin to the point of consumption. It helps manufacturers to get raw-materials to factories and products to market.
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Cashew nut delivery made through the shipment. Shipment should take place as early as possible after drying with in a maximum period of 90 days to avoid deterioration and spoilage of the raw-nuts. Regular shipping facilities are available from India to all ports of the world, the front runner in carrying out shipment being the Cochin port. The other contributing ports are Tuticorin, Mangalore, Madras, and Bombay. Regular services of container ships are available from Indian ports on India-USA, India-Japan, India-Australia, India-Singapore. In order to ensure safe transport, the bags must be stowed and secured in the means of transport in such a manner that they cannot slip or shift during transport. Attention must also be paid to stowage patterns which may be required as a result of special considerations.

FACILITATING FUNCTION
Facilitating functions are those activities for supporting the smooth flow of goods from the point of production to the point of consumption. The important supporting functions are; 1. FINANCE It is the money or credit required for starting and running of business. Marketing requires different kinds of finance such as short term, medium term & long term finance. Generally banks & financial institution provide necessary finance required by marketing organization. KVS factory has been partly financed by Axis Bank Syndicate Bank.

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2. RISK BEARING Risk may be defined as uncertainty with regard to cost loss or damage. In other words it is the possibility of loss due to unfavorable happenings in the future. There may be loss of goods due to fire, theft, flood, earthquake, accidents etc. KVS factory faces risks such as war, political instability etc while exporting their products. INSURANCE Insurance provides protection against various risks. They can cover the risks on payment of a nominal premium and recover the loss, if any, arising out of the risks. KVS followed with ECGC insurance. 3. STANDARDISATION The setting up of standards or specifications of a product and maintaining these standards are known as standardization. Standardization is the basis of grading. It facilitates trading, as the parties know the product standards. Standardization of goods helps sale of goods by convincing the customers about the quality of the goods. Moreover, standardized goods fetch higher price from the customers who are quality conscious. REGULATION, STANDARD AND QUALITY OF CASHEW Qualities are that characteristics which distinguish one article from another or the goods of one manufacturer from those of his competitors, or one grade of product from another, when both are turned by some factory.

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The quality of cashew kernels depends on the quality of raw nuts. The following are the various factors which the exporters should consider throughout the process from harvesting to shipment to ensure the quality of their raw cashews: The nuts should be harvested only after they have fallen to the ground. The nuts should be sun-dried immediately after harvesting. During the drying process (which normally lasts two to three days), the nut density should not exceed 20Kg per square metre. The nuts should be turned over regularly to ensure uniform drying until the kernels rattle in the shell. When dry, the nuts should be stored in dry jute or sisal bags in well-ventilated dry rooms. Shipment should take place as early as possible after drying within a maximum period of 90 days to avoid deterioration and spoilage of the raw nuts.

QUALITY SPECIFICATION FOR CASHEW NUTS

PARAMETERS OUT TURN NUT COUNT MOISTURE FOREIGN MATTER VALUE 44-52lb/80Kg 160-240 9% 0.25%

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 Where Out turn means weight of kernel recoverable from raw nuts measured in pounds (lb) per kilo bag. Nut count means number of nuts in a kg measure. Quantity: Minimum requirement should be One 20ft Full Container Load (FCL). 4. GRADING Grading means division of products into different grades or classes made up of units possessing similar features as regards size, weight and quality. Grading is done in accordance with the specifications set up by the standards. Cashew Kernels are graded into white/scorched Wholes, pieces splits, butts etc., depending on the Shape, size and colour of the kernel. The Government of India Act prescribes 33 different grades of cashew kernels. Only 26 grades are commercially available and exported. Cashew nut-splits W - 180, are the ' King of Cashew ' They are larger in size and very expensive. W - 210, is popularly known as 'Jumbo' nuts. W - 240, it is an attractive grade which is reasonably priced. W - 320, are the most popular among cashew kernels and highest in terms of availability, world wide W - 450, are the smallest and cheapest white whole kernels and hence the favorite among low priced whole grades. Cashew Nut Kernels is processed from Raw Cashew. Cashew Kernel intact from the shell and grading them carefully to superior standards required by top food companies all over the world. The un-shelled nut is steamed to soften the shell and carefully cut open.

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The kernel is dried to loosen the skin which is then peeled off. Whole kernels are graded by size and color. Pieces are chopped into required sizes. After final QC including metal detection, they are packed in vacuum for freshness. Following grades of CASHEW NUT KERNELS are normally available for Local and Export. Grades W320, W240, LWP, W450, Splits, K, SP, SWP, BB. For Local supply Tin Packs of 10 kg or 11.34 kg each is available.

We can also Export Small Quantities of Cashew Nuts as a Trial Shipment to test the Quality of Cashew nut, starting with 1,000 kg by

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Air or by Courier Export or by Sea Freight for the importers/Buyers who really want to place Full Container Order later onwards. 5. PRICING Price of a product is influenced by the cost of production and services offered, profit margin desired, prices fixed by rival firms and Government policy. A sound pricing policy is an important factor for selling the products to the customers. The pricing policy of a firm should be such that it attracts all types of customers of different means. Price means the exchange value of products in terms of money. Pricing means fixing a reasonable money value to the product on the basis of quality, quantity, package, colour etc. Price fixation is primarily based on four conditions such as; Pricing to attain organizational objective. Pricing to cover the cost of the product Pricing to meet competition in the market Pricing in order to capture customer demand.

PRICING OF CASHEW
Market prices have been good (at $637 US dollar per ton in 2003) and have been increasing steadily. Currently the price ranges from $650 to $700 according to the Public Ledger. Pricing strategy is based on the world market pricing which is ultimately determined by demand, competitiveness and available market information. It has been established that prevailing prices at any given time depend on the origin of the product. During 1980-1990s period,

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prices were good for Indian cashew nut, which selling price was between US $1,188 and 1,012 per metric ton/FOB.

ORDER PROCESSING
It is the manner in which customers order are procured or processed is a factor which determines the extend of service available to them. Order processing takes the following steps; Receipt of order by the salesman. Transmission by the salesmen to the firm. Entry of the order into the firm's books. Checking the customers profile. Inventory and production scheduling. Invoicing and shipment. Receipt of payment. The speed with which the processing takes place determines the quality of customer service.

ORDER PROCESSING FOR CASHEW

Usually orders are placed after acceptance of samples and on agreed mutual terms. Cashew nuts are traded on FOB or CIF basis subject to agreement between parties. Payment is usually cash against document but the letters of credit (L/C), confirmed and irrevocable, are used with certain origins. To create goodwill, new suppliers are advised to offer advantageous terms such as payment on arrival and after inspection or drawing a certain percentages against the L/C, the rest to be paid after inspection.

PRICES IN INDIA
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Crisis in the industrial sector in Vietnam and Brazil, main competitors of India in the cashew-nut market has resulted in its price reaching a high of USD 3.60 per pound in global markets as against USD 1.90 per pound about six months back. This has been the main reason for India, the biggest cashew producer in the world, getting a record price, Cashew Export Promotion Council Chairman, P Bharatan Pillai said. India exports cashew-nut primarily to USA, Europe, Japan and Australia. Demand for Indian cashew-nut increased as both Vietnam and Brazil failed to meet orders for cashew-nut from other countries leading to a rise in its prices, he said. Sellers involved in the futures market would have to supply the product at the price fixed earlier, while those sellers who stocked the commodity would get a better price. Pillai said the impact of the price was less in the national market. The price for super quality cashew-nut in the national market ranges from Rs 500 to Rs 550. Unseasonal rains from March-April 2008 affected the crop and the default on Vietnam's part in delivering the commodity also hit supply, he said, adding that business was quiet for the past couple of weeks.

6. ADVERTISEMENT
For the domestic market, KVS advertises through news papers, magazines, & other out door means. For the international market, all the advertising is done by the Cashew Export Council of India; this council was set up by the Government in 1955.

7. SALES PROMOTION
Promotion deals with informing and persuading the customers about the firms product. It is communication between seller and buyer.
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It is telling and selling. It involves various activities which a company may undertake to communicate its products merits to its present and potential customers in order to persuade them to buy the product. It motivates the people to buy whatever a company is selling.From KVS & SONS point of view, domestic market is given only secondary importance, since primary stress is laid on export and international markets. Recently cashew nuts have been considered more of a luxury item, and as such the domestic market has never seen to be encouraging as far as the producers prospects are concerned. However of late, even the middle class people have begun accepting cashew nut as a part of their diet.

OBJECTIVES OF PROMOTION
The basic objectives are to bring about the sales of a product. To creating awareness. To stimulate demand. To help distribution or agents. To stabilize sales. To popularize brand name. Exporters can place advertisement in specialized publications. (Indian Cashew Journal and Public Ledger) or through the web. In addition, participation in trade fairs, International Cashew Congress and undertaking trips to target markets can introduce new contacts; provide information on market trends and commercial practices. From KVS point of view domestic market is given only secondary importance, since primary stress is laid on exports, & international markets. Recently cashew nut has been considered more of a luxury

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items, and as such the domestic market has never seen to be encouraging as far as the producers prospects are concerned. However, of late even the middle class people have begun accepting cashew nut as a part of their diet.

FINDINGS
The main products produced by KVS are cashew kernels and CNSL. Raw nuts are collected by importing from Indonesia, Benin, Ivoire, and local market. 21 Kg nuts must be shelled by each cutter at KVS. It is found that manual peeling is better, because breakdown of kernels high in mechanical peeling, it makes loss. Overtime work of peeling section can be done by workers at their home itself. KVS products are branded with the name KVS it self. It is observed in the study that the overall performance of KVS is satisfactory. Firm gives more importance for international trade. Advertisement made through the Cashew Export Council.

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SUGGESSTIONS
The firm should conduct marketing research for increasing sales. Firm should attach good label while packing. The firm should take good steps to give advertisements to the public. Efforts should be made to procure raw material at cheaper rate &should concentrate on the quality of the product. Regular checking of final product is important.

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CONCLUSION
This study is made an attempt to know overall production process and marketing activities of cashew nut. It was found with the help of' 'KVS& SONS' cashew factory. The cashew kernels are largely used by the food processing industry, as it is in confectionary and bakery products such as sweets, ice creams, cakes, chocolates etc. And the CNSL is used in paint industries for the manufacture of paints and varnishes, water proofing compound for Boats and Vessels, Lubricant for break liner. The major processing steps includes; soaking, roasting, shelling, CNSL extraction, drying, peeling, grading, packaging. And machines and equipments needed for process are; Roaster, Sheller, Cashew nut Decorticator, Dryers, oil expellers, trollys. KVS produces good quality of products at reasonable price, also factory provides employment opportunity for local people at Shakthi Nagar, Mangalore.

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BIBILIOGRAPHY
Website
www. KVS Kamath &Sons.com.
www.google.com

Books
Philip

Kotler, Marketing Management, Twelveth Edition,

Prentice Hall of India Private Limited- New Delhi. Production and Operations Management-K. ASHWATHAPPA, SHRIDHARA, BHAT.

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