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Summer Internship Report

Conducted a

LT Foods Limited
On Project

International Marketing and Export Documentation

Submitted to

Deenbandhu Chhotu Ram University of Science & Technology, Murthal


in the partial fulfillment of requirements for the award of degree of Master of Business Administration

Session: 2012-2013

Submitted by Nitish 11001532030

Department of Management Studies

Acknowledgement
Acknowledgements are a bit like acceptance speeches; predictable but from the heart so here is some predictable prose direct from the heart.

I take this opportunity to express my sincere gratitude to LT Foods Ltd. for providing me an opportunity to undertake the study of masters of business administration.

On the onset I would like to thank Mr. Sanjay of LT Foods Ltd., who gave me the opportunity to work on this project which helped me with immense learning.

I am grateful to Mr. Ajad Singh and Miss Renu Jain Who not only guided me, but also supported and gave me required time and advice to complete the project.

The report would have been incomplete without the cooperation & support of my faculty members.

And lastly I would like to thanks to the staff of LT Foods Ltd. who during my stay in the office have made me feel a part of them and made my stay comfortable in the office.

Nitish

Preface
The project study has been conducted in lieu of requirement laid down by Department of Management Studies, DCRUST, Murthal, Sonepat for the degree of MBA. Under this requirement, every student is supposed to undergo summer training or to write a report in an industrial or commercial organization. It enables the students to understand the practical aspect of the conceptual studies learnt by them in the commerce subject. The purpose of providing on the training to student is to supplement their academic knowledge with practical knowledge and acquaint them with the intricate problem. Which are faced while practices, which are not warranted under the law. On the training enables the student to draw a via Media through which law can be implemented by twisting the same in favour of the circumstances, without of course, violating the basis spirit of law. Thus, the importance of providing on the training is immense and cant be under scared by any stretch of imagination.

Declaration
I, Nitish class MBA 3rd Sem of the Department of Management Studies, DCRUST, Murthal, Sonepat hereby declare that the project entitled International Marketing and Export Documentation is an original work and same has not been submitted to any other institute for the award of any other degree. The feasible suggestion has been duly incorporate in consultation with the supervision.

Nitish

Table of Contents
Chapter 1 2 3 4 Contents Aim & Establishment of the Company Policy of the Company Organizational Structure of the Company Work Experience to Project Introduction to International Marketing 5 6 7 Description of work taken Experience gained and Problem faced Conclusions Suggestions & Recommendations Limitations Bibliography Annexure Page No. Remarks

Company Profile
L.T. Overseas Ltd. a Star Trading House recognized by Government of India is a fast growing company with a coveted position in the rice industry. The LTO Group installed a state-of-the art rice milling plant in the year 1988 at Kakroi Road, Sonepat. Recently, LTO commissioned an ultra modern, fully automatic rice milling plant at Bahalgarh, Sonepat (Haryana). This is one of the very few integrated rice plants in India capable of producing finished rice, untouched by hands and of internationally acceptable standards. LT OVERSEAS LTD, the present flag ship of the business operations started in a humble way as a rice miller in the rustic border areas of Amritsar in Punjab.

Today, company is one of the leading Basmati producers in India, with satisfied customers all over the world. The company's brand "DAAWAT" has almost become synonymous with gourmet's delight. The secret behind this transformation has been the company's guiding philosophy that the Customer comes first. Always. Every time This focused approach has provided the right impetus for continuous improvement and results are there for all to see. Company has yearly turnover of about 100 million dollars. It has exported rice worth more than 200 million dollars to customers in over 40 countries in the last 3 years.

Quality based procurement, state of the art milling plants, product quality and customer focus are a few things they have always been known for. In fact, L.T.O. is the only company in India which uses X rice polishing technology. This ensures that Daawat Basmati rice is just perfect - length-exceeding 7.0mm, perfectly tapered ends, uniformly long grain, pristine white luster and appetizing aroma.

Company strives to make Daawat a hallmark of quality, which should be second to none in the global market.

On successfully installing and implementing the dreams into reality, company travels a tough journey toward success. The secret of this success is the years long wait and sweat of the employees.

The Journey to Perfection Some of the people think that DAAWAT have been around forever. In fact it has been only 35 years now. The story of Daawat began as a small rice trading operation in a shed and soon grew into a large-scale export brand of premium basmati rice. How did this transition come about? 1960s The seeds of L.T Overseas Limited were sown in 1965 when Shri Raghunath Arora, the founder of the company, started rice-trading operations in a shed in Amritsar, Punjab with an aim to earn the profits. 1970s The trading organization diversified into rice procurement and milling with the establishment of its first milling unit Lal Chand & Tirath Ram Rice Mills in 1977 in Amritsar, Punjab. 1980s In initial stages, the company has been strictly adhering to customer's specifications but these specifications alone did not guarantee consistency in meeting customer's requirements. The deficiency in the system to supply and support product quality resulted in foodstuff not always meeting the market quality needs. Consequently, it impelled the demand for instituting a good quality system, which would ensure a sustainable quality. To meet the growing demand of Basmati rice in India, the second rice-milling unit was established in Sonepat, Haryana. The company also ventured into the branded rice market by launching its Daawat brand in 1986.

1990s On 29 Sept 1993, Lal Chand & Tirath Ram Rice Mills converted in to L.T. Overseas Private Limited with a focus to carry on the business as buyers, sellers, importers, exporters, distributors, agents, brokers, stockiest, dealers of all kinds of food products and agriculture products. The company, accordingly developed and installed a quality system of international standard and acquired ISO 9002 certification in Feb.' 98. This quality system has been designed in such a manner to meet the company's needs while harmonizing with ISO 9002. On export of Basmati rice from India, the company bagged numerous awards including APEDA award for its exceptional export performance in this decade.

Today L.T Overseas Limited is known for its quality based procurement and production, state of the art milling plants and high quality product. Its brand Daawat has the highest market share in southern India. On successfully installing and implementing the food safety system, the company is now in proud possession of HACCP certification, which was awarded in September 2000. Besides being an established International player in rice, L T Overseas has now a sister concern L.T. International (P) Ltd. which exports a wide range of agricultural commodities like: groundnut kernels, sesame seeds, spices and fruits & vegetables produced in India. Further, this company also handles imports ranging from Non Ferrous & Ferrous Metals (Virgin, alloy & scrap), Plastic Raw Material (like PET chips) to a variety of chemicals. This division is expanding its wings by setting up a wholly owned subsidiary company in U.K.

Present Precious Vision Travel back in time to 1965. And a small "shed" in BHIKIWIND (AMRITSAR) in Punjab. Here was the first glimmer of the glowing success that was to follow. It was the dream of SHRI RAGUNATH ARORA. A true visionary, he planted the seeds of today's rice empire: The L. T. Overseas Group. With humble beginnings as a trading operation, the vision revealed golden linings... and slowly, but very steadily, grew into a huge group. By 1977, the trading operation became a partnership company - LALCHAND TIRATHRAM RICE MILLS - which later served as one of the procurement and milling facilities feeding the Group. By 1990, RAGHUNATH ARORA'S vision was already becoming a reality. It was in this year that L. T. Overseas became a Private Limited Company. In two short years of its operations, the Company made its mark in export of Basmati, earning over RS. 30 million. Within the next 3 years not only did the company go Public, it recorded a whopping 30-fold increase in turnover. Today the L. T. Overseas Group is synonymous With quality based procurement, hi-tech parameters of quality and hygiene with its very own milling plants and state of the art machinery. Indeed, today L. T. Overseas is one of the few companies in India that can produce Basmati rice conforming to international standards. You could say the vision harvested from soil, was truly showing precious returns. And all of this has been made possible by a single vision and commitment that flows through the company.

Organisational Structure

DIRECTOR WORKS

DIRECTOR EXPORT SECTOR HEADS (EXPORT)


COMMERCIAL HEAD

MANAGEMENT REPRESENTATIVE
DIRECTOR TECHNICAL

DIRECTOR MARKETING G
H.R.D. HEAD
V.P. TECHNICAL

LOGISTIC HEAD

BRAND MANAGER

SALES DEPOT INCHARGE

MARKETING HEADS (DOMESTIC)

SALES CO-ORDINATOR

REGIONAL SALES HEADS

Organisational Chart at Bahalgarh Plant


DIRECTOR TECHNICAL WORKS
SYSTEM EXECUTIVE
GODOWN INCHARGE MANAGER LABORATORY

PADDY INCHARGE

V.P. TECHNICAL

HRD EXECUTIVE

RICE INCHARGE

PLANT ENGINEER MAINTENANCE INCHARGE

PLANT SUPERVISOR MANAGER QUALITY ASSURANCE

PACKING INCHARGE

V.P. COMMERCIAL ANALYSTS STORE INCHARGE BARDANA FUMIGATION INCHARGE

PPI

STORE INCHARGE GENERAL

MANAGER PURCHASE

Quality Control
L.T. overseas limited, endeavor to achieve customer satisfaction by producing and supplying Basmati rice and other products, of consistent and safe quality, to customers all over the world. This, company intend to attain by continually improving company systems, through technical up gradation of methods, systems and infrastructure skill enhancement and involvement of employees.

The 5 Ps Mantra
The ingrained Perfection in each grain offered by L.T.OVERSEAS is the result of

Procurement of best quality paddy Preservation of paddy in most hygienic conditions Processing of paddy by Hi-tech machines Packaging of rice in high standard packaging material People working as a team

Quality Policy
The management of the company has adopted a well-defined quality policy. It is based on a total commitment to quality and concern for customer satisfaction. This implies that the rice offered by the company is competitive in price, safe to use, and also meets the perceived values of customers and is of consistent quality. Our personnel work in teams to ensure consistent quality and improvement in the products and services. It is ensured that quality policy is understood, implemented and maintained by personnel at all levels in the company.

To provide value and satisfaction; to the customers by supplying the products which meet their expectations

Quality Objectives
The prime concern of the company is to provide superior quality rice and to achieve customer satisfaction. The quality objectives of the company are

To satisfy customers expectations for quality rice. To comply with applicable national and international standards. To attain high level of hygiene, sanitation, cleanliness and housekeeping. To make available rice at competitive price. To ensure timely deliveries meeting customer's specified schedule. To continuously reduce wastage and rejects at all stages. To ensuring implementation of ISO 9002 and HACCP quality and food safety systems.

To motivate employees for professional excellence and participation.

The management review is conducted to ensure successful implementation of the quality policy and continued suitability and effectiveness of quality system by the Management Review Committee (MRC). The MRC undertakes management review at least once in six months to achieve and sustain the objectives of quality policy. The customer' focused approach of the company has laid right impetus for continuous improvement, as a result of which the L.T. Overseas is amongst the first in the rice industry to establish an integrated food safety and quality systems based on HACCP Codex Alimentarius and ISO 9002, to ensure highest quality products with built in safety to customers. This has not only provided the vehicle for enhancing customer satisfaction and bring about greater transparency in the operations but also laid the framework for attaining an even higher level of excellence

Quality Certification
There cannot be quality without safety The company has developed and installed a quality system of international standard and acquired an ISO 9002 certification in Feb' 98. This quality system has been designed in such a manner to meet the company's needs while complying with ISO 9002. To meet the renewed market demand on food safety, the quality system was upgraded and developed in consonance with the food safety and food hygiene requirements as recommended by the Codex Alimentarius commission, a body which was instituted jointly by FAO and WHO for evolving a food standards Programme. On successfully installing and implementing the food safety system, the company is now in proud possession of HACCP certification which was awarded in September' 2000. While ISO 9002 quality system manages food quality, the HACCP system goes further and identifies, evaluates and controls hazards, which are significant for food safety, and thereby insures suitability for human consumption within its premeditated application. HACCP revolves upon a cardinal assumption that there cannot be quality without safety. The foundation of HACCP system is hygiene and sanitation but the Codex Alimentarius (Food laws or codes) have been devised to gratify food quality. The customer' focused approach of the company has laid an impetus for continuous improvement, as a result of which the L.T. Overseas is amongst the first in the rice industry to establish an integrated food safety and quality systems based on HACCP Codex Alimentarius and ISO 9002, to ensure highest quality products with built in safety to customers. This has not only provided the vehicle for enhancing customer satisfaction and bring about greater transparency in the operations but also laid the framework for attaining higher level of excellence.

The Midas touch all the World

Nowhere is the concept of turning 'white' into gold more successfully demonstrated than in the international market. The world has always hungered for fine quality premium rice. And this is indeed where L.T.Overseas has shown its Midas touch - exporting over Rs. 1700 million worth of Basmati and non-Basmati worldwide. In the face of stiff competition, Daawat consistent quality and constant improvement of grain quality has earned it an impeccable reputation in the international market. Both for its superb Basmati and non-Basmati varieties as well as its professionalism and strict adherence to delivery schedules. Worldwide, L.T. Overseas is expanding its network to better serve the increasing demand and for quicker and more efficient service. Marketing and Trading Agents have already been appointed in several countries around the world The company has been engaged in the business of processing and trading rice in India and international market for nearly 50 years and has the capacity to process 600 tones of rice per day at its plants situated in AMRITSAR, and SONEPAT. In the Gulf - India's biggest market - DAAWAT is a very popular brand. The Company is already exporting to the USA and Middle Eastern countries (like UAE, KSA, Kuwait, Oman, Dubai etc.). In addition, L.T. Overseas is making inroads in new markets like Australia, South Africa, Sri Lanka, Mauritius and is in the process of expanding its network in these countries. The company is also aggressively tapping and developing potential markets like Japan, Indonesia, Korea, Hong Kong, Singapore and Iran. L.T. Overseas has an office in Rotterdam - in the Netherlands - the nerve center for international trade. This office facilitates exporting to countries like France, The Netherlands, Germany, Russia, Lithuania and Poland. The Company is also supporting processing and packing for a number of regional brands in the Gulf and UK.

Export of Basmati Rice from India

7.4 6.6

7.7

0.5 2000-01 2001-02 2002-03 2003-04

EXPORT OF BASMATI BY L.T.OVERSEAS LTD.


1860 1707 1544

777 581

2000-01 2001-02 2002-03 2003-04 2004-05


(IN RUPEES)

Marketing takes the lead in all the business activities. All the business activities will be futile if one can market the goods and services manufactured or offered by him. Marketing was so simple in the old economy. Manufacturer adopted certain principles and practices for the successful operation of their factories. The standardized products in order to bring down cost they aimed to continuously expand their market size to achieve economies of scale. They were not concerned with what consumer wants. Now its a new economy, businessman are operating in a globalize economy. Our markets are characterized by hyper-competition & disruptive technologies are challenging every business. The time has come when business must adapt to the empowered consumer. A number of facts have contributed to this change-:

1. A greater variety of available goods & services. One can compare the products manufactured are marketed by different business houses. 2. A great amount of information about practically everything advertisement & print media followed by Internet has contributed a lot in this regard. 3. A substantial increase in buying power. 4. A great case in introducing, placing & receiving orders.

The changing scenario in international marketing compelled the manufacture Effective to re-think about their marketing strategies. the

marketing

requires

that

managers

reorganize

interdependence of such activities as sales & promotion & how they can be combined to develop a marketing program.

With changing consumer preference patterns due to better purchasing power & shift to affluent standards of living, demand for Basmati has been growing steadily over the yearsboth domestically as well as in the international markets