ORGNISATIONAL STUDY REPORT at NITTA GELATIN INDIA LIMITED COCHIN Submitted by Nida Zahoor ([Link].

1126)

In partial fulfilment of requirement for the award of POST GRADUATE DIPLOMA IN MANAGEMENT To

BHAVANS ROYAL INSTITUTE OF MANAGEMENT (Approved by All India Council for Technical Education, New Delhi) THIRUVANKULAM KOCHI-682305

2011-2013

DECLARATION

I Nida Zahoor declare that this report is a bona fide record of work done by me in partial fulfilment of the requirement for the post graduate diploma in management under Bhavans Royal of Management, Thiruvankulam, Cochin and this report Has not been previously presented for the award of any other degree, diploma, fellowship or other equivalent title of any other universities, institution and society.

Place: Ernakulum Date: Nida Zahoor

ACKNOWLEDGEMENT First of all, I thank the Almighty for his enlightened inspiration throughout my life and pray that he may continue to bless my endeavours. I am greatly obliged to thanks, Mr Sreejith, Manager Training, Personnel and Administration, Nitta Gelatin India Limited, Panampilly Nagar for his valuable help through the project work. I express my thanks to all officers and staff members of Nitta Gelatin India Limited for their whole heated cooperation and guidance. I articulate the feeling of obligation for the splendid support extended by Assistant Prof. Sreejith.S, my guide for without his meticulous and industrial guidance this study would not have served its very purpose. I articulate the feeling of obligation for the role of our Dean [Link] was much significant, my heartfelt gratitude to him for the unremitting support bestowed upon me all through. Finally I would like to express my sincere thanks and gratitude to my friends, parents and all my wishers who have provided all necessary support to make this Organization Study a Success.

Date: 16 -7 - 2012 Place: Kochi Nida Zahoor

[Link].

CHAPTER No.

TITLE

PAGE NO.

1 2

INTRODUCTION

1.1 3 1.2 4 1.3 5 1.4 6 1.5 7 1.6 8 2 9 2.1 10 2.2 11 2.3

Introduction

Need and significance of the study

Objective of the study

Scope of the Study

Methodology

Scheme of Reporting

INDUSTRY PROFILE

Introduction

World Scenario

Indian Scenario

12

2.4 State Scenario

13

2.6 Porters Five Force Model

14

COMPANY PROFILE I

15

3.1

Introduction

16

3.2

Features of Gelatin Industry

17

3.3

Production and Manufacturing of Gelatin

18

3.4

Achievement and award

19

3.5

Vision and Mission

20

3.6

Company Objective

21

3.7

Promoters

22

3.8

Product and Application

23

3.9

Corporate Social Responsibility

24

3.10

Five Force Analysis

25

DEPARTMENTS

26

4.1

Personal and Administration Department

27

4.2

Marketing Department

28

4.3

Stores Department

29

4.4

Commercial Department

30

4.5

Finance Department

31

4.6

Secretarial Department

32

4.7

Production Department

33

4.8

Central Engineering Service Department

34

4.9

Technical Department

35

OBSERVATION, SUGGESTION AND CONCLUSIONS

36

5.1

Observation

37

5.2

Suggestions

38

5.3

Recommendations

LIST OF FIGURES

[Link] [Link] 1 3.10

TITLE Organisational chart of NGIL

PAGE

4.1

Department Structure (P&A)

4.2

Recruitment Process Chart

4.3 4 5 4.2.1

Structure of Training Policy

Structure of Marketing Department

4.2.2

Structure of Distribution Network

4.3.1

Structure of Stores Department

4.4.1

Structure of commercial department

9 10 12 13

4.4.2 4.4.3 4.5.1 4.6.2

Structure of purchase process Process of purchase Structure of Secretarial Department Structure of Finance Department

14 15 16

4.7.1 4.7.2 4.7.3

Structure of production Department of Ossien Division Structure of Production Department of Gelatin Division Structure of manufacturing Process

LIST OF TABLES SI.N o [Link] TITLE PAGE

3.1

Major Mile stones

3.2

Certification of Division

3 4

3.3 3.4

Balance sheet of NGIL Profit and loss account of NGIL

4.1

Leave Administration(Management Staff)

4.2

Leave Administration of Ossien Division

4.3

Assessment of Training for the year

4.4

Self-Evaluation form

4.5

Department Evaluation form

10

4.6

Manpower Strength

10

1.1

Introduction to the Study Nitta Gelatin India Limited (NGIL) , one of the most successful Indo-Japanese

industrial ventures, was incorporated on 30th April, 1975 and started commercial production in 1st October, 1979. The promoters of the company are Nitta Gelatin Inc, Japan, the pioneering Gelatin Company in Japan and Kerala State Industrial Development Corporation, India, the nodal agency for the development and promotion of industry in Kerala. Nitta Gelatin India Limited engages in the manufacture and sale of Gelatin, collagen peptide, dicalcium phosphate (DCP), Ossein, chitosan, and bovine collagen peptide primarily in India. The company provides Gelatin, an ingredient used in the drug delivery systems, such as two piece hard capsules, soft capsules, tablets, coated tablets, and mini and micro capsules; and in the edibles comprising confectionery, Gelatin desserts, dairy products, meat products, and beverages and juices. The summer internship aims to ensure that students are familiar with the nature and functioning of a business organization in the real world. It provides students opportunity to know, observe, learn, collect, and analyse the nature, vision objectives and functioning of an organization and the activities of various objectives and functioning of an organization and the activities of various departments in the organization. The was study was conducted for the period of two weeks.
1.2

Need and Significance The need for the summer internship is that it would be beneficial for us to analyse

the selected company and its various activities as well as the various departments functioning in the organization and also to have an overall view about the particular sector the company is belonging to. We will also be able to analyse the performance of the organization and its contribution to the Indian economy. It will help us to get an overall idea about the global, Indian and Scenario.
1.3 Objectives of the Study 1. To have an understanding of the organisation and its various activities. 2. To acquire knowledge regarding the functional as well as the managerial

aspects of the company.

11

3. To learn more about the various departments and their structures. 4. To find out the problems faced by each departments in achieving their goals. 5. To attempt a SWOT analysis of the organisation.

1.4 Scope of the Study This organisational study aims at generating practical awareness of the functions and management of the company Nitta Gelatin India Limited. The study helps to familiarize with the business organization and to understand the operation of the organization and how they are carried out. It gives an opportunity to know the nature of the Gelatin industry in which company belongs to and the market characteristics of the business. The study helps in understanding the organization structure of Nitta Gelatin and functionings of various departments in the organization and how they are working in coordination in order to achieve its overall organizational objectives .The study gives an opportunity to know the nature of the industry in which the organization belongs to and the market characteristics of the business. It also highlights the relative strengths and weakness of the company with respect to its major competitors in that particular industry. 1.4.1 Coverage of the Study The organisational study was for the period of two weeks. It helps in understanding the organisational structure and functions of various departments in the organisation. The study provides general idea about the various departments of the Organisation at head office such as Human Resource, Marketing, Commercial Department, Finance Department, Technical Department and Production. 1.5 Methodology Followed The study covers a general understanding of the company Nitta Gelatin India Ltd. various departments and its business activities. The trainee used personal observation and discussion with the employees and Managerial staff to collect the relevant information for preparing of this report. For internal analysis researcher has used SWOT analysis for knowing the internal weakness and strengths of the business and to find out the opportunities and threat prevailing in the current scenario. For external analysis researcher has used Porters Five Force analysis tool for understanding of current business situation of

12

the organisation. It helps to understand the strength of current competitive position of the business.

a) Primary data:

In this study primary data is collected from different departments by direct interviews and observation. The data was collected directly from the department heads of the organization although they were very busy in their work. Employees of the Nitta gelatine were very corporative and helpful.
b) Secondary Data:

In this study secondary data is collected from published reports of the company Magazines, Manuals of each Departments and websites. 1.6 Scheme of Reporting The report includes Five Chapters including the introduction chapter which explains the significance of summer internship in management courses. The second chapter deals with industry profile where we discuss about the evolution of the industry and how it works. In the third chapter we discuss about the company profile which give as an idea about the vision and mission of the organization its promoters, procedures, organization including its functions structure process etc. The fourth chapter includes suggestions and recommendation formulated after detailed study of the organization. The final chapter is the conclusion where an attempt to do SWOT analysis of the organization is made and also the findings during the study.

13

CHAPTER II INDUSTRY PROFILE

14

2.1 Overview to Industry Gelatin is a fibrous insoluble protein, which forms around one third of the body's mass. Gelatin is a translucent, colourless, brittle (when dry), nearly tasteless solid substance, derived from the collagen inside animal skin and bones. It is commonly used as a gelling agent in food, pharmaceuticals, photography, and cosmetic manufacturing. Gelatin is produced in various grades and is used in photographic applications, pharmaceutical, food and Neutra ceutical industries. Pharmaceutical Gelatin, used in the production of capsules, commands the second highest price, after photographic grade Gelatin. These four industries collectively consume over 95 percent of Gelatin globally. The balance 5 percent industrial Gelatin finds applications in the manufacture of abrasive paper, textiles, matches and printer rollers and many more industries. The main component of Gelatin which is derived from collagen consists of more than 86% protein. Water makes up 12% of total components and 2% of ash. Gelatin is a mixture of peptides and proteins produced by partial hydrolysis collagen extracted from the skin, boiled crushed horn, hoof and bones, connective tissues, organs and some intestines of animals such as domesticated cattle, chicken, horses, and pigs. The natural molecular bonds between individual collagen strands are broken down into a form that rearranges more easily. Gelatin melts to a liquid when heated and solidifies when cooled again. Together with water, it forms a semi-solid colloid gel. Gelatin forms a solution of high viscosity in water, which sets to a gel on cooling, and its chemical composition is, in many respects, closely similar to that of its parent collagen. Gelatin is also soluble in most polar solvents. Gelatin solutions show viscoelastic flow and streaming birefringence. If Gelatin is put into contact with cold water, some of the material dissolves, but not all. The solubility of the Gelatin is determined by the method of manufacture. Typically, Gelatin can be dispersed in a relatively concentrated acid. Such dispersions are stable for 1015 days with little or no chemical changes and are suitable for coating purposes or for extrusion into a precipitating bath.

15

Gelatin gels exist over only a small temperature range, the upper limit being the melting point of the gel, which depends on Gelatin grade and concentration (but is typically less than 35C) and the lower limit the freezing point at which ice crystallizes. The upper melting point is below human body temperature, a factor which is important for mouth feel of foods produced with Gelatin. Mechanical properties of Gelatin gels (for example the gel strength, which is quantified using the Bloom test) are very sensitive to temperature variations, previous thermal history of the gel, and time. The viscosity of the Gelatin/water mixture increases with concentration and when kept cool (4 C). Gelatin is a fibrous insoluble protein, which forms around one third of the body's mass. Gelatin is a translucent, colourless, brittle (when dry), nearly tasteless solid substance, derived from the collagen inside animal skin and bones. The raw material is first carefully selected refined and extracted. Gelatin is thus made up of extremely pure protein. Gelatin is of three grades.
1. Edible 2. Pharmaceuticals 3. Photographic 2.1.1 Gelatin in food Industry

Gelatin is truly remarkable in terms of its many functional properties in food applications. Gelatin is the only natural protein of commercial importance, capable of producing clear thermo-reversible gels when combined with water. This property is Gelatins most commercial feature. In its gel form, gelatine is also unique in that it is able to melt at body temperature.
a) Gelatin Desserts

Desserts are perhaps the most widely known use of gelatine to people of all ages. They can be traced back to 1845, when a US patent was issued. Over 150 years later, they remain popular worldwide.
b) Confectionery

16

Gelatin confection are typically made from a base of sugar, corn syrup and water. To this are added flavour, colours and texture modifiers. Gelatin is widely used in confectionery because it gels, foams or solidifies into a piece that dissolves slowly in the mouth, gently flavours and creating a smooth taste sensation.

c)

Dairy products Gelatin acts as both a text riser and a stabilizer in many dairy products, including

and yoghurts and supreme ice creams. In yoghurts it helps avoid the floury texture of starches, while in ice creams it controls the excess formation of ice crystals. In both yoghurt and ice cream, as with similar dairy desserts or iced confections gelatine melting at body temperature provides a smooth creamy sensation and allows the full release of flavours and aromas.
d) Gelatin in meat

There are jellied meat products of many kinds. For example, gelatine in use in gel aspics glazed and canned meats. Its main function is to absorb meat juices and give and structure to products that would otherwise fall apart.
e) Beverages

By acting as a coagulant, gelatine can be used to precipitate impurities during the manufacturing of wine, beer, cider and juices. It has the advantages of unlimited shelf life in its dry form, ease of handling, rapid preparation and brilliant clarification.
f)

Low fat and Lite foods Gelatins unique properties are utilized in the production of many lite foods and

items such as margarine and other low fats.

2.1.2 Pharmaceutical Gelatin

Gelatin is used in myriad ways in the pharmaceutical industry. It is used for the manufacture of capsules, tablets, and prevents drugs being damaged by air and light. Due to its good compatibility with human tissue, Gelatin in sponge from is used to treat wounds and as a replacement for blood plasma in solutions.
17

1) Capsules and Tablets 2) Vitamin preparation 3) Gelatin sponge 4) Plasma expanders

2.1.3 Photographical Application

Sliver salt photographic materials consist of up to 15 layers containing gelatine that are coated onto film or paper. Here gelatine Gelatin acts as a binding agent for lighting sensitive sliver halides Due to their swelling properties, the developing agents by watering. Gelatin is an important component for the complex layer technique. It has the ability to form a solution during heating that sets to a gel again on cooling down and can be kept after water removal. Gelatins properties are needed to produce photographic materials such as amateur films, colour paper, graphic films and x-ray films, in industrial volumes. Gelatin is also indispensable for digital photography. The pharmaceutical and Neutraceutical market for Gelatin present a slew of barriers for new manufacturers. The barriers to entry include the necessity to carry out fresh stability tests and submission of revised ANDA to the regulatory authorities for each product. The price of edible Gelatin is lower than that of pharmaceutical grade Gelatin. Moreover, the pricing of Gelatin depends on its bloom strength or bloom value which indicates the molecular weight of Gelatin. The domestic Gelatin market comprises players with smaller capacities. Similar to global growth, demand for Gelatin in the domestic market is driven by the pharmaceutical and neutraceutical sector, which is growing at around 15 precent per annum. 2.2 World Scenario The worldwide production amount of Gelatin is about 300,000 tons per year (roughly 660 million lb). On a commercial scale, Gelatin is made from by-products of the meat and leather industry. Gelatin is derived mainly from pork skins, pork and cattle
18

bones, or split cattle hides; contrary to popular belief, cheese is not used. The raw materials are prepared by different curing, acid, and alkali processes which are employed to extract the dried collagen hydrolysate. These processes may take up to several weeks, and differences in such processes have great effects on the properties of the final gelatin products. There are total 25 manufacturers of Gelatin in the world; however there are five major manufacturers which comprise about 70% of the total Gelatin supply. In fact 80% of the world's gelatine production is concentrated in the US, Europe and Japan with technology closely guarded by handful of players. Themajor global producers of Gelatin are 79 companies including many key and niche players worldwide such as Gelatin AG, Nor land Products Inc., Sobel NV, Rousselot S.A.S., Rousselot (Da'an) Gelatin Co. Ltd., Sterling Gelatin, Tessenderlo Group, PB Gelatin, and Nitta Gelatin, Inc., which together account for around 75 percent of global Gelatin production. 2.2.1 Global players for Gelatin Industry:
1) Gelita Australia [Link], Australia & Nz. 2) Eastman Gelatin Corporation, USA. 3) Atlantic Gelatin/Kraft Foods Global Inc, USA. 4) Nitta Gelatin, Canada, Inc 5) Nitta Gelatin Inc, Japan. 6) Gelco, Columbia 7) Rousselot (Daan) Gelatin Co. Ltd

2.2.2 Global Production of Gelatin [Link].2.1 Production of Gelatin REGION Western Europe Eastern Europe North America GELATIN PRODN IN MT 1,22,000 6,800 62,400

19

Latin America Asia &Oceania Other TOTAL

53,500 68,000 2,300 315,000

Fig 2.1 Raw Material used in Gelatin Production

20

Source: Collect from companies website

2.3 Indian Scenario At present there are top 5 Gelatin Industrial Companies which will alone account for 62%of the total Gelatin production. Around Rs. 500 crore domestic gelatine capsule industry is expected to witness a sustained demand in the next 5-6 years. Indian pharmaceutical companies have grown simultaneously with the local capsule manufacturers. India, which has an advantage of producing the cheapest gelatine in the world, could attract global players to mark their presence in Indian Market. The Indian Market is growing at a rate of more than 15% p.a. as compared to the global average of 23%. India can opt for manufacturing hard Getalin capsules for import substitution. Soft capsules are used for medicines in oil or paste form and hard ones are used for other drugs. Herbal or Nutracuetical drug manufacturers are opting for plant-based cellulose capsules. As such there will be good demand foe gelatine in India. Some of the Indias leading players include ACG Worldwide, Bharti Healthcare, Medi Caps, Strides Acrolab and Sunil [Link] like Sterling Biotech and Kerala Chemicals & Proteins are into the manufacture of gelatine used in making the capsule.
1) 2) 3) 4) 5) 6)

NGIL-Cochin, Kerala STERLING-Baroda, Gujarat STERLING-Ooty,TN RAYMON-Baroda, Gujarat IGCL-Vapi, Gujarat NARMADA-Jabalpur, MP

2.3.2 Sterling India Sterling is world leader in Gelatin technology. In 1995 sterling entered into collaboration agreement to set up brand new Gelatin manufacturing facility in India. The company since then set up the most modern world class facility employing the latest innovations in technology for manufacture of Gelatin managed by high calibre professionals in the [Link] are a major operating division of the diversified Sandesara Group of companies. Sterlings core business is the manufacturing of Gelatin
21

for pharmaceutical and edible uses where the company has established a worldwide reputation for supplying high quality products against very demanding specifications. 2.3.3 Narmada Gelatines ltd Narmada Gelatines Ltd. (Erstwhile Shaw Wallace Gelatines Ltd) was set up in 1961. The company is strategically located in the Central Indian State of Madhya Pradesh and has convenient access to its main and essential inputs of crushed bones, acid, lime and good quality water. Narmada Gelatines Ltd. has pioneered the manufacture of Ossein and Gelatin in India and is today a frontrunner in India's Gelatine Industry meeting exacting standards of various users worldwide. We at Narmada have successfully applied sophisticated technology to ensure Quality at each stage of its manufacturing process so that our products meet international quality standards and is commercially worthy of a broad spectrum of usages in the dynamic domestic and international markets.

2.3.4 Pioneer Jellice India Ltd Pioneer Jellice India Private Limited has its origin in "Asia Glues and Chemicals Private Ltd" (AGCL) which was manufacturing Ossein and Di Calcium Phosphate, supplying Ossein mainly to Eastman Kodak from the year [Link] 1984 AGCL started supplying Ossein to Jellice Co. Ltd (formerly Miyagi Chemicals Industrial Co Ltd).In 1991, a new Joint Venture Company "PIONEER MIYAGI CHEMICALS PRIVATE LTD" (PMCL) was formed and a new plant was setup in Cuddalore, 200 kms south of Chennai (Madras).PMCL commenced production in 1993 with an installed capacity of 200 MT per month. The entire production is exported. Dicalcium Phosphate is a main ingredient in Poultry Feeds. Entire production of PMCL Ossein has been bought by Jellice Company 2.3.5 Narmada Gelatin Narmada Gelatines Ltd. (Erstwhile Shaw Wallace Gelatines Ltd) was set up in 1961. The company is strategically located in the Central Indian State of Madhya Pradesh and has convenient access to its main and essential inputs of crushed bones, acid, lime and good quality water. Narmada Gelatines Ltd., has pioneered the manufacture of ossein and Gelatin in India and is today a frontrunner in India's Gelatine Industry meeting exacting
22

standards of various users worldwide. We at Narmada have successfully applied sophisticated technology to ensure Quality at each stage of its manufacturing process so that our products meet international quality standards and is commercially worthy of a broad spectrum of usages in the dynamic domestic and international markets.

2.4 State Scenario Nitta Gelatin India Limited (NGIL) is an India-based company. Nitta Gelatin India Limited (NGIL), one of the most successful Indo-Japanese industrial ventures, was incorporated in 1975 and started commercial production in 1979. The promoters of the company are Nitta Gelatin Inc, Japan, the pioneering Gelatin Company in Japan and Kerala State Industrial Development Corporation, India, the nodal agency for the development and promotion of industry in Kerala. KSIDC and NGI has 34 per cent and 45 per cent stakes in the company with the remaining held by the public. The Company is engaged in the business of manufacture and sale of Gelatin, Ossein, dicalcium phosphate (DCP) and bovine collagen peptide. Collagen peptide is a dietary/functional food supplement through pharmaceutical companies. NGIL subsidiaries are Bamni Proteins Limited and Reva Proteins Limited. Nitta Gelatin Inc. is headquartered at Osaka, Japan. NGI is world's 4th largest Gelatin manufacturing group & part of Nitta Corporation, Japan. The Nitta Gelatin Group provides global customers superior products and services using proprietary technology in the manufacturing of it are of Gelatin, collagen and related products. The company manufactures Gelatin, Collagen, Peptide, Ossein, and Di- Calcium Phosphate & Chitosan.
23

These products find application in various industries ranging from Pharmaceutical, Confectionery, Healthcare, Personal care, Food Products. NGIL is currently the leading Gelatin supplier to capsule makers in India and 25 other countries including USA, Japan & Europe. NGIL combines the best technology, marketing expertise, and most importantly, dedicated human resource.

CHAPTER III

24

COMPANY PROFILE

3.1 Introduction Nitta Gelatin India Limited (NGIL) is an India-based company. Nitta Gelatin India Limited (NGIL), one of the most successful Indo-Japanese industrial ventures, was incorporated in 1975 and started commercial production in 1979. The promoters of the company are Nitta Gelatin Inc, Japan, the pioneering Gelatin Company in Japan and Kerala State Industrial Development Corporation, India, the nodal agency for the development and promotion of industry in Kerala. KSIDC and NGI has 34 per cent and 45 per cent stakes in the company with the remaining held by the public. The Company is engaged in the business of manufacture and sale of Gelatin, Ossein, dicalcium phosphate (DCP) and bovine collagen peptide. Collagen peptide is a dietary/functional food supplement through pharmaceutical companies. NGIL subsidiaries are Bamni Proteins Limited and Reva Proteins Limited. Nitta Gelatin Inc. is headquartered at Osaka, Japan. NGI is world's 4th largest Gelatin manufacturing group & part of Nitta Corporation, Japan. The Nitta Gelatin Group provides global customers superior products and services using proprietary technology in

25

the manufacturing of it are of Gelatin, collagen and related products. The company manufactures Gelatin, Collagen, Peptide, Ossein, and Di- Calcium Phosphate & Chitosan. These products find application in various industries ranging from Pharmaceutical, Confectionery, Healthcare, Personal care, Food Products. NGIL is currently the leading Gelatin supplier to capsule makers in India and 25 other countries including USA, Japan & Europe. NGIL combines the best technology, marketing expertise, and most importantly, dedicated human resource. The Group provides healthy, functional and valuable products produced in multinational facilities that are safe, reliable and environmentally friendly. Nitta Gelatin India Ltd. was incorporated as Kerala Chemicals and Proteins Ltd. in 1975, the name was changed to Nitta Gelatin India Ltd. in 2008 reflecting their global standards and values. NGIL has two plants in Kerala, one in Maharashtra and one in Gujarat, their products reach 22 countries. The Company is listed on Bombay and Cochin Stock Exchanges [BSE Code: 506532].

The word Gelatin comes from the French word Gelatine meaning edible jelly and gelato meaning to freeze. It is a translucent, odourless, colourless, brittle, nearly tasteless solid substance. Thickening agent, nutritious glutinous protein material obtained from animal tissues by boiling. Most of it comes from beef bones, cartilage and tendons and pig skin. Gelatin does not occur free in nature, and cannot be removed from horns, hoofs, and other non-collagen containing parts of vertebrate animals. There are no plant sources of gelatine, and there is no chemical relationship between gelatine and other materials referred to as vegetable Gelatin, such as seaweed extracts. Gelatin is a protein produced by partial hydrolysis of collagen extracted from the bones, connective tissues organs, and some intestines of animals such as domesticated cattle, pigs, and horses. Gelatine is a wholesome food protein derived from mammalian skin and bone. It is commonly used as a gelling agent in food, pharmaceuticals, photography, and cosmetic manufacturing. Three main classes of raw material that are commercially and technically used to manufacture Gelatin are pig skin, beef skin, and bone. Gelatine is an irreversibly hydrolysed form of collagen. Gelatine derived from an acid-treated precursor is known as Type A, and gelatine derived from an alkali-treated precursor is known as Type B. gelatine is classified as foodstuff, with E number E441.
26

Gelatine melts when heated and solidifies when cooled again. Together with water, it forms a semi-solid colloid gel. If gelatine is put into contact with cold water, some of the material dissolves. The mechanical properties are very sensitive to temperature variations. The viscosity of the gelatine/water mixture increases with concentration and when kept cool (4 degree Celsius). We can extract hydrolysis macromolecule animal protein from it, the purity is 98%. 3.2 Production and Manufacture of Gelatin: Gelatin is derived from collagen, an insoluble fibrous protein which is the principal constituent of connective tissues and bones. Collagen is distinctive in that it contains an unusually high level of the cyclic amino acids proline and hydroxylproline. Collagen consists of three helical polypeptide chains wound around each other and connected by intermolecular cross-links. Gelatin is recovered from collagen by hydrolysis. There are several varieties of Gelatin, the composition of which depends on the source of collagen and the hydrolytic treatment used. The principal raw materials used in Gelatin production today are cattle bones, cattle hides, and pork skins. Extraneous substances, such as minerals (in the case of bone), fats and albuminoids (found in skin), are removed by chemical and physical treatment to give purified collagen. These pre-treated materials are then hydrolyzed to Gelatin which is soluble in hot water. Cattle hides are the least used Gelatin raw material in North America today. Gelatin recovered from bone is used primarily in photographic applications: some is used for pharmaceutical purposes. The so-called green bone from the slaughter of cattle is cleaned, degreased, dried, sorted, and crushed to a particle size of about 1-2 cm. The pieces of bone are then treated with dilute hydrochloric acid to remove mineral salts. The resulting sponge-like material is called Ossein. From this point on in the manufacture of Type B Gelatin, both cattle hides and Ossein receive similar treatment. Cattle hides are available from trimming operations in leather production. Cattle hides are usually de-haired chemically with a lime/Sulphide solution followed by mechanical loosening. For the production of Type B Gelatin, both Ossein and cattle hide pieces are subjected to lengthy treatment with an alkali (usually lime) and water at ambient temperature. Depending on previous treatment, the nature of the material, the size of the pieces, and the exact temperature, liming takes 5-20 weeks, usually 8-12. The process is

27

controlled by the degree of alkalinity of the lime liquor as determined by titration with acid, or by making test extractions. Ossein usually requires more liming than cattle hides. Additional lime is added to maintain an excess, thereby compensating for any consumed. During liming some deamination of the collagen occurs, with evolution of ammonia. After conditioning, the raw material is thoroughly washed with cold water to remove excess lime; the pH adjusted with acid; and the product extracted with hot water to recover the soluble Gelatin. Pork skin is currently the most significant raw material source for production of edible Gelatin in North America. Supplied as either fresh or frozen, pork skins come from slaughter houses and meat processing plants already trimmed of fat, flesh and hair. Pork skins are usually de-haired by scalding with a hot dilute caustic soda solution. When pork skins are utilized for production of Type A Gelatin they are washed with cold water and then soaked in cold dilute mineral acid for several hours until maximum swelling has occurred. Hydrochloric acid and sulphuric acid are most commonly employed. The remaining acid is then drained off and the material is again washed several times with cold water. The pork skins are then ready for extraction with hot water. The pH, time, temperature, and number of extractions varies from processor to processor depending on product needs, type of equipment employed, time of operations, and economics. Extraction procedures are closely controlled in the manufacture of both type A and type B Gelatin since they influence both quality and quantity. Although continuous extraction is used by some processors, most methods still employ discrete batch fractions. Extraction is normally carried out in stainless steel vessels equipped with provisions for heating and temperature control. The number of extractions varies, 3-6 is typical. The first extraction generally takes place at 50-60-degrees C. The final extraction is carried out close to the boiling point. Extracts are kept separate, analysed, and subsequently blended to meet various customer specifications. Earlier extractions have higher molecular weights, higher viscosity, higher gel strength, and the least colour. The later extractions are made at increasingly higher temperatures; the resulting product has lower molecular weight, lower gel strength, and greater colour. The dilute Gelatin solutions from the various hot water extractions are filtered, deionized, and concentrated by cross-flow membrane filtration and/or vacuum evaporation. The Gelatin solution is then chilled and either cut into ribbons or extruded as noodles, and the gelled material is deposited as a bed onto an endless, open weave,
28

stainless steel belt. The belt is passed through a drying chamber, which is divided into zones in each of which the temperature and humidity of the drying air is accurately controlled. Typical temperatures range from about 30-degrees C in the initial zone up to about 70-degrees C in the final zone. The air is usually conditioned by filtration, dehumidification and tempering. Drying involves progressive increases in air temperature, often with exhaustion of moist air and replenishment with conditioned air. Drying time is 1-5 hours, depending on the quality and concentration of the material and the exact conditions employed. The rate of drying is carefully controlled to avoid melting and case hardening. The Gelatin leaves the dryer with a moisture content of about 10%. The dried bed is then broken into pieces that are ground to the required particle size. Dried Gelatin is tested for quality and gel strength according to standard methods developed by the Gelatin Manufacturers Institute of America. Throughout the entire process, strict attention is paid to Good Manufacturing Practices to ensure the purity of the Gelatin. Although Gelatin are sometimes referred to as edible, pharmaceutical, photographic or technical, these terms refer only to their uses, and not to the methods of manufacture. 3.3 Major Milestones Table. No. 3.1 Major Milestones Year 1975 1979 1985 1996 1997 1998 1999 2004 2004 2005 Company Growth Incorporation Of The Company Started Commercial Production of Ossein Granted Export House Status Limed Ossein Plant Commissioned Formed Bamni Proteins Ltd Gelatin Plant Commissioned ISO 9002 Certification Gelatin Plant Capacity Expansion ISO 9001:2008 Facilities inspected by Usfda & European directorate for the quality of medicines

29

2007 2008 2010 2010

Gelatin Plant Capacity Expansion Company Name Changed To Nitta Gelatin India Limited ISO 14001:2004, Introduction of consumer product Collagen pep under common brandGelixer

2010 (Nov 20)

Introduction of Agricultural Product- Neutrigold

3.4

Achievements and Awards:

Some of the significant accolades received include:

1) Top Export Award from CAPEXIL- Ossein & Gelatin Panel 2) ISO 14001:2004 for Gelatin Division for Environment Management System.

3.5

Certifications of Various Divisions

[Link].3.2 Certification of Divisions Certifications ISO 9001-2000 Divisions Ossien Division, Gelatin Division And Bamni Proteins Ltd ISO 14001 HACCP Drug Manufacturing License Gelatin Division and Ossein Gelatin Division & Ossein Division Gelatin Division

30

EDQM WHO-GMP USFDA KOSHER IFANCA & MUI Halal Completed European Union Certification Procedures

Ossein & Gelatin Division Ossein,Gelatin&Bamni Division Gelatin Division Gelatin Division Gelatin Division Gelatin Division

3.6 Companys Mission and Vision: a) Mission

1)

To become a premier industry in India with a global perspective, world class standards of efficiency and professionalism and core institutional values.

2)

Reach the position as the leader in Gelatin manufacture in India Maximize shareholder value through high sustained earnings per share.

3)

Continue as an institution with a culture of mutual care and commitment, a satisfying work environment and continuous learning opportunities.

b) Vision
1) 2) 3)

Reach the position as the leader in Gelatin manufacture in India. Maximize shareholder value through high sustained earnings per share. Continue as an institution with a culture of mutual care and commitment, a satisfying work environment and continuous learning opportunities.

c) Companys Objective: 1)

To ensure availability of required quantity and quality of raw materials and spares to all divisions and subsidiaries.
31

2) 3)

To ensure smooth functioning of the division and subsidiaries. To monitor implementation of new projects/ development of new products.

3.7 Promoters: The two Promoters are Nitta Gelatin Inc. and KSIDC. In the initial stages Mitsubishi was also one of the promoters. Subsequently, the shares held by Mitsubishi were taken over by Nitta as a result of which Nitta has now become the biggest stakeholder in NGI
1. Nitta Gelatin Inc. (NITTA)

The Gelatin division of the multidivisional, multi product NITTA Group of Japan, NITTA Gelatin Inc. was formed in 1918. The company has five main divisions - Gelatin, Food Additives, Adhesives, Engineering and Research & [Link] has set for itself high quality standards through relentless research, development, and innovation and production technology. All of which have made it the world leader in the Gelatin market.
2. The Kerala State Industrial Development Corporation LTD.

The nodal agency for the development and promotion of industries in Kerala, the KSIDC is a fully owned company of the state Government. For over 35 years now the Corporation has been giving entrepreneurs professional, technical and financial assistance to set up successful business projects in Kerala.
3.

Mitbushi Corporation (MC)

Japan's largest general trading company, Mitsubishi Corporation handles a vast array of goods and services ranging from telecommunications to tea. MC was established in 1950 and has its headquarters in Tokyo, Japan. 3.8 Products and its Application Products:
1) 2) 3)

Ossien (intermediary products) Gelatin (edible &pharmaceutical) Di-calcium phosphate

32

4) 5)

Chitosan Collagen peptide Ossein NGIL manufactures Ossien under the technical guidance of Nitta Gelatin Inc,

1)

Japan. Besides using Ossein for the manufactures of Gelatin NGIL exports ossein to a Nitta Gelatin Inc, Japan on a buy back arrangement. The bones are received crushed, broken into small pieces no larger than one- half inch .crushed bone is loaded into wooden tanks each of which holds greater than ten tons .the bone is demineralised by soaking it in hydrochloric acid. Demineralised bone is called Ossein or collagen. NGL manufactures Ossein under the technical guidance of NGIL. Besides using Ossein for the arrangement with demand for Gelatin going up, NGIL has stepped up production capacity of Ossein to 7000 MT and set up facilities to produce 5000 MT of limed Ossien. 2) Gelatines are of three grades: a) Edible gelatin Gelatin is what makes it possible for the creation of desserts, frozen sweets, soft candies, marshmallows, etc. It gives these products a uniquely soft & smooth texture. Furthermore, because Gelatin is a natural product, it is widely used as a binding material in hams and sausages and as a clarifying agent for alcoholic beverages. b) Pharmaceutical gelatin Gelatin film is used in the production of making hard & soft gelatin capsules in order to prevent the oxidation of the contents and absorption of moisture. Gelatin capsules also offer the unique advantages of ease of swallowing, dosage accuracy and appearance. Gelatin's unique physical properties also allow for the coating and binding of tablets. Having no toxicity and its ability to be easily absorbed by the body, gelatin is an ideal substance to use in medicinal and nutritional preparations. c) Photographic gelatin Gelatin for photographic use is generally made from bone. We have developed the technical competence to manufacture this specialty product with the help of our parent company. 3) Di Calcium Phosphate DCP
33

NGIL is the market leader in the production of premium Di Calcium Phosphate (DCP). With almost thirty years of expertise, NGIL produces and supplies premium quality DCP to major poultry farms and animal feed manufacturers in India. NGIL exercises stringent quality not only in the selection of raw material but also at every stages of production, until the product is finally delivered to the customer hands. NGIL is uniquely placed to draw on the vast resources of its collaborators to ensure that products are consistently of high quality. DCP is mainly used in 4 sectors:
1. Poultry Farms 2. Mineral Mixtures 3. Feed Manufactures 4. Industries (for manufacture of ceramic products)

4)

Collagen peptide NGIL manufactures Collagen Peptide (Gelatin Hydrolysate), by the enzymatic hydrolysis of Bovine Bone Gelatin. The manufacturing process adopted is a proven and updated one. Licensed and supported by Nitta Gelatin Inc, Japan, NGIL manufactures and supplies Collagen Peptide in both powder and granular forms. Granular product is available in different flavours as per customer requirement. NGIL are now caters to consumers directly. Company launched a healthcare product with the introduction of Collagen Peptide, Gelixer Collagen Pep, a natural, safe Gelatin derivative for knee pain and Osteoarthritis. This will be followed by a slew of other products for Osteoporosis, Skin Care, Pressure Ulcers, Wound healing etc.

5)

Nutrigold: Nutrigold is NGILs latest offering to farmers. It ensures higher yields and more benefits across a variety of crops. . This product is used for better growth with 10-15% yield improvement. The product can compete in the existing market due to better quality and productivity matching the price of similar products available.

3.8.2 Advantages of Gelatin 1) Gelatine is multi-talented:

34

Is it not impressive that a foodstuff with such a long tradition as gelatine still plays so important a role in the modern food industry. We live in an age in which the consumer feels confronted with food that have been genetically modified and contain a large number of additives and E numbers. None of this applies to the pure, collagen protein gelatine. It offers many so far unbeaten properties.
2)

Gelling, thickening and stabilizing: Gelatine belongs to the large group of hydrocolloids. These are substances that are

made of vegetable or animal proteins or complex sugars. They have the capacity to swell or bind water. Hydrocolloids are used to thicken gel and stabilize food. No other hydrocolloid provides all of the properties, gelatine combines all in one ingredient.
3)

Gelatine is a thermo-reversible hydrocolloid: Distinction is made between two different gelling types of hydrocolloids. Thermo-

reversible gels are formed by cooling a warm solution. The gel can be melted again at any time. The other group comprises hydrocolloids soluble in cold or hot water and need the addition of salts or acids to form a gel. However, these gels cannot be melted again.
4)

Gelatine is unique It melts at body temperature and this property is unique among the hydrocolloids.

Foods using gelatine therefore melts in the mouth and generate that unique great mouth feel and an intensive flavour release. That great mouth feel is decisive for many consumers in their decisions about what to buy. Moreover, gelatine is the most versatile of the hydrocolloids in the modern food industry. Gelatine is suitable for gelling, thickening, binding water, foaming and stabilizing and it is highly elastic. 3.8.3 Features of Gelatin:
a)

Gelatin is a high-grade protein: Edible gelatine is a pure and easily digestible protein particularly important part of

our diet. Other nutrients, such as fats and carbohydrates, can often substitute each other in human metabolism, but protein can rarely, if ever, be substituted and a regular intake is essential for our health and wellbeing. It is free from additives and preservatives.
b)

Proteins are based on amino-acids:

35

The building blocks of the various types of protein are amino-acids. Our body is capable of building the proteins it requires from amino-acids and to some extent is also capable of creating amino-acids from digestive fragments. This is not true of all amino acid types, which means that we must eat ten essential amino-acids regularly in our food. Edible gelatine contains nine of these essential amino-acids. 3.9 Organisation Structure The patter of network of relations between the various positions in organisations as well as between their persons who hold those positions is referred to as Organization chart. Organization data are often shown in the form of graphic chart. According to Harold koontz and Cyril ODonnell, every organization can be charted, for a chart is nothing more than an indication of how departments are tied together along their principal lines of authority. In the words of George R Terry, A chart is a diagrammatical form which shows important aspects of an organization including the major functions and their respective relationship, the channels of supervision, and the relative authority of each employee who is in charge of each respective function. An organization chart can be drawn in different forms like
i. Top down chart ii. Left to right or horizontal type of chart iii. Circular Chart

In the Top-down-chart the major functions are shown at the top with subordinate functions in successive lower positions. Such type of an Organization Chart of NGIL is described below explaining the line of authority and the names of concerned personnel who hold various responsibilities

3.10 Organizational chart of NGIL

Board of Directors

Managing Director
36

ED (OO)

ED (HR&G)

ED(Tech) GM (F&A) 9 GM (MKTG&BD) DGM (R&D)

GM (GD)

GM (Mtrls) MT

DGM (IA)-CS

MR

Fig .No 3.1 Structure of Organisational chart of NIGL

Authority Levels and Grades Level I 1) 2) 3) Level II 1) 2) 3) Level III 1) 2) 3) 4) Executive Directors General Managers Dy. General Managers Asst. General Managers Managers Dy. Managers Asst. Managers Sr. Officers/Senior Engineers Officers/Engineers Asst. Officers/Foreman

37

1.

Level The Executives in Level 1 will be Divisional Heads who have direct reporting to

the Chief Executive. They constitute the Apex Management Team. All policy decisions are taken only at this level. Each Functional Head will be responsible for the formulation and implementation of the broad policies relating to his Functions. The executives in this level will have representation in Performance Review Meetings (MBO), Management Review Meeting (ISO), Senior Executive Meetings (Policy-making body) and Divisional Meetings (on subjects related to their functions).All the executives in this level are having delegated powers, Administrative as well as Financial, subject to certain limits prescribed by the MD.
2.

Level II Executives in this level are in the middle management cadre who are Functional

Heads or Department Heads. Assistant General Managers/Managers will be having overall control in respect of the activities relating to the Departments they are heading. Deputy Managers will be basically assisting the AGMs and Managers in the discharge of their Functions. Only AGMs are having delegated powers, both Financial and Administrative. However, the Department Heads may, at their sole discretion, sub-delegate some of the powers conferred on them, to the Deputy Managers, depending upon their dependability and suitability. However, the basic responsibility will rest with the Department Head. All the above executives will selectively have representation in the Departmental Meetings, Division Meetings, Corrective and Preventive Action (CAPA) Meetings and Daily Meetings. They will be responsible for implementation of the policies formulated by the top management.
3.

Level III Executives in this level are in the Junior Management Cadre. They are responsible

for the routine functions related to the operations of the various departments. Basically, they are the linking pins between the Management and the Workmen category. No specific powers are delegated at this level as per the Companys delegation policy. Theyll be enjoying only sub-delegated powers from their Department Heads, in certain specific functional areas. They will have representations in the Division Meetings, Department Meetings and Daily Meetings.
38

3.11

Corporate Social Responsibility Corporate social responsibility can be defined as the duty of business to provide

fair return to the shareholders fair working conditions to the employee fair deals to the suppliers and customers and to make the business an asset to the community and the nation. The concept of social responsibility of business gave a new shape to the manners and morals of business of NGIL, NGIL being a company with a very stringent code of business ethics, both in papers and in practice, the Company has been actively participating in community development activities right from the beginning. Every year the company had stood up to its tradition of conducting many community development programmes in and around the two divisions of Koratty and Kakkanad .The major community development projects sponsored by the company are:
1.

Construction of a10-bedded hospital building at Kathikudam near the Ossein factory.

2. 3.

Construction of Reading Room under the name and style of Panchayat. Co-partnership in the construction of Krishi Bhavan in Kadukutty General Stream and in Scheduled Castes Stream from the Kadukutty and Koratty Panchayat.

4.

Co-partnership in the self-employment programme in the Kadukutty and Koratty Panchayat areas, through the Kadukutty Rural Welfare Society.

5.

Sponsoring of prizes in the sports activities in the area surrounding the Ossien Division.

6.

Provision of free drinking water to the families staying in the vicinity of the Ossien Division and Gelatin Division.

7.

Extending financial assistance for the free medical campus conducted in the areas surrounding Ossien Division and Gelatin Division.

8.

Extending financial assistance for the Panampilly Nagar Beautification Scheme, initiated by the Panampilly Nagar welfare Association.

39

3.12

Five Force Analysis

Five forces analysis looks at five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry

Threat on new entrants

Less entrants No affect on the industry of new entrants

Bargaining power of suppliers

Bargaining power of buyer

High bargaining power Low switching cost

40

High bargaining power

Low switching cost Variety of choices

Rivalry among existing competitors

High competition

Threat of new substitutes

Low substituents

Fig No.2.1 Porter Five Force Model for Industry Analysis

a)

Threat of entry.
1)

It would be very difficult for a new company to enter this industry because

they would not be able to compete with the established brand names, distribution channels, and high capital investment.
2)

Need of high end and sophisticated technology requirements is pausing

the entry of new players.

3) Sourcing of raw material may be difficult for new players as Meat processing

depends on export.

41

4) The new entrants to the industry will not affect the existing companies any ways

because they will have to work hard to get a customer and get suppliers of the raw materials. Since other companies in this industry have made their place they know how to compete with the entering companies and retain their customers with better quality products.

b)

Bargaining power of buyers

1) The buyers in India have variety of choice. There are more than 20 Gelatin

manufacturing companies in India like Sterling, Pioneer, and Narmada Gelatin. So bargaining power of buyers is high as the buyers have number of options available.
2) They can switch from one company to other since the switching cost is very low

because the cost of Gelatin is almost same in every company

3) Since the buyers of Gelatin purchase in bulk quantities the buyers has the power to

bargain over the price.

c)

Bargaining power of supplier 1) Bargaining power of supplier depends on meat processing .When the demand for gelatine is more suppliers will drive the bargaining power. 2) The switching cost is also very low. Its not going to cost much for the industry to shift from one supplier to another and this is one big threat for the supplier and other reason is there is lots of supplier.

d)

Threat of substitute Products

42

1) Major threat to Gelatin industry is HPNC Poly Mehta Acryl ate. HPNC is a

vegetable Gelatin. The rapid growth and awareness of healthy lifestyle choices as well as vegetarian diets demand for non Gelatin capsules are poised to rise each year. According to health focus in the United States alone 25% of the population are moving towards vegetarianism.

e)

Competitive Rivalry:
1) Companies are able to maintain a competitive advantage with innovation due to the

large amount of technology that goes into the products and services. Obtaining that competitive advantage is a key factor.
2)

Economies of scale can play a huge role in success as well as the market can also be price sensitive. Due to the fact that the cost of raw materials can sometimes be volatile, the company must plan ahead in order to remain efficient as extra expenses can only be made up by passing the burden to their customer.

3)

Major Gelatin Players are Sterling, India Gelatin Narmada Gelatin Pioneer Gelatin so there is tough competition between players on the basis of quality of Gelatin.

43

3.12

Balance Sheet

BALANCE SHEET AS AT 31st MARCH, 2012 Particulars Note No. As at 31.03.2012 As at 31.03.2011 Rupees Rupees

I 1

EQUITY AND LIABILITIES Shareholders Funds

a. Share Capital b. Reserves and Surplus

2.1 2.2

84,000,000 985,744,244

84,000,000 973,987,139

Non-current Liabilities
a.

Deferred (Net)

tax

liabilities 2.3 2.4 65,411,000 10,886,892 67,724,000 11,478,316

b. Long-term Provisions

Current Liabilities a. Short-term Borrowings b. Trade Payables c. Other Current Liabilities d. Short-term Provisions 2.5 2.6 2.7 2.8 364,033,113 216,244,847 13,948,849 57,393,410 271,660,028 157,233,390 11,678,583 55,560,743

Total

1,797,662,355

1,633,322,199

II 1

ASSETS Non-current Assets

a.

Fixed Assets
i. ii.

2.9 680,855,004 5,923,426

44

Tangible Assets Intangible Assets

673,453,334 7,903,134

iii.

Capital Work-inprogress 2.10

64,033,033 84,640,237

86,369,935 81,490,237

b. Non-Current Investments c.

Long-term Advances

Loans

and 2.11 239,742,235 122,969,695

Current Assets
a.

Inventories

2.12 2.13

432,472,117 175,208,544 13,801,222

401,891,094 144,194,527 9,814,206

b. Trade Receivables c.

Cash and Cash Equivalents 2.14 Loans and 2.15 2.16 Advances

d. Short-term

49,050,471 51,936,066

61,550,950 43,685,087

e.

Other Current Assets

Total

1,797,662,355

1,633,322,199

3.13

Profit and Loss STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH, 2012

[Link] Particulars

Note No.

For the year ended 31.03.2012 Rupees

For the year ended 31.03.2011 Rupees

Income

45

Revenue from operations 2.17 (gross) Less : Excise duty Revenue from operations (net)

2,498,837,733

2,079,305,282

40,743,152

42,845,043

2,458,094,58 2,036,460,239 1 II III Other Income Total Revenue 2.18 11,317,822 2,469,412,403 27,433,949 2,063,894,188

IV

Expenses: [Link] of consumed materials 2.19 1,324,775,821 (1,953,659) 1,177,051,712 5,005,450 (49,628,777)

b. Purchases of stock-in2.20 trade c. Changes in intervention of finished goods, workin-progress and stock-intrade. d. Employee expense e. Finance costs f. Depreciation and amortisation expense 2.23 benefits

2.21 2.22 2.9

154,191,916 60,661,963 89,742,402

127,958,225 27,660,549 84,319,367

776,645,758

666,382,708

g. Other expense 2,404,064,201 Total Expenses

2,038,749,234

V VI

Profit before tax(III-IV) Tax expense:

65,348,202

25,144,954

46

[Link] tax less: Mat credit Entitlement [Link] for earlier years c. deferred tax

22,000,000 (4,816,724) (329,939) (2,313,000)

5,210,000

(3,071,524) 4,091,000

VII VII

Profit for the period (VVI) Earnings share: per equity 2.24

50,807,865

18,915,478

6.05 6.05

2.25 2.25

3.14 SWOT Analysis A.) Strength

1) The technology used in the production of Gelatin by NGIL is world class and there Is

a competitive technological support and assistance by the NIITA Inc, Japan

2) Collaboration with World Class [Link] has an excellent tie-up with leading

companies of the world

3) KSIDC is fully owned company of the state Government and for the business

development and industrial promotion GIL gets professional technical and assistance from this government agency.
4) A vast global customers: Being B2B, the customer circle of NGIL broadens to 5) International market. 6) Dedicated technically qualified people. NGIL recruiting the people who have 7) Technical as well as aptitude skills also with much care on experienced workers. 8) Committed to improving the quality of the society: Being a main player in food

industry and pharmaceutical industry NGIL is very much committed to assure the quality.
B.) Weakness 1) Raw material transportation and availability: Raw material transportation is one of the

main problems that the company faces. Major part of the cattle bones is brought from
47

North India and they are being transported by trucks. Earlier raw material were brought by railway goods service but often there were delays in getting the material on time since the Railway Transportation Board gives last preference to such materials . Hence bringing entire raw material; by trucks involves a high raw material transportation cost.
2) Low Market share: When we consider the entire gelatine industry the contribution of

NGIL is very minimum of 10-15%.

C.) Opportunities 1) NGIL has successfully faced three very important international regulatory inspections

and therefore expects an increased confidence of their overseas customers resulting in an increased demand for Gelatin. It is poised for another certification under the ISO14001 which focuses mainly on Environment Management.
2)

NGIL expects orders from new international customers in the pharmaceutical sector.

3) NGILs products have the advantage of being well accepted in terms of quality and

regulatory compliance and therefore expect to increase its presence both in the export and domestic markets.
4) The company is also exploring the possibilities of offering value added products to

new markets and new customers.

D.) Threats 1) There has been a substantial increase in the production volumes of PORK Skin

Gelatin. The increase availability of this type of gelatine is likely to adversely affect the demand of Bovine bone Gelatin.

48

2) Also Gelatin alternatives such as HPMC and starch based products pose a great threat

to the future of the industry.

3) Conventional photography is making way to digital photography and a steady decline

in this market segment has to be anticipated

4) There is high fluctuation in the value of UD dollar to Indian rupee Since 80% of the

sales into the export market are billed in terms of US dollar company is incurring loss

CHAPTER 4 DETAIL STUDY OF DEPARTMENTS

49

4.1 Various Departments a) Corporate office

1) 2) 3) 4) 5) 6)

MDs office Personal and Administration Commercial Department Finance Department Marketing & Business development Department Technical Department

b) Ossein Division:
50

1) 2) 3) 4) 5)

Production Central Engineering services(Maintenance) QA/QC Stores-General stores and [Link] HR & Administration
c) 1) 2) 3) 4)

Gelatin division: Production Central Engineering services (Maintenance) Stores-General stores and [Link] HR & Administration

4.1 4.1.1

PERSONAL AND ADMINISTRATION DEPARTMENT (P&A) Functions in P&A

a) Personal: 1. 2. 3. 4. 5. 6. 7.

Manpower planning Recruitment and Selection Placement Induction Training Performance Appraisal Compensation Planning
51

8. 9. 10.

Succession Planning Industrial Relation Discipline and disciplinary proceeding

b) Administrations: 1. 2. 3. 4. 5.

Wage and salary Administration Welfare function Social security of measures Liaison with government departments General Administration
a) b) c) d) e) f)

Repairs and maintenance of office building Vehicle running and maintenance Dispatch of mail and Telephones Renewal of licences under various statutes Finalisation of miscellaneous contracts Overall responsibility for general administration of Ossein Division (OD) and Gelatin Division

4.2.1 Department Structure of Personal and Administration

Executive director (HR&[Link])

AGM (HR), OD

g)

Head (HR), GD DY. M (HR) 52

M (HR)

PS

Fig No 4.1 Structure of Personal and Administration 4.2.3 Recruitment Policies

a) Sources of Recruitment
a)

Internal
1. 2. 3.

Promotions from within Employee Referrals Routine Applications

b)

External
1. 2. 3.

Employment Exchanges Professional Institutions (Engg colleges, Business Schools) References from well-wishers (other Industries, Local Bodies, State ITIs, Supervisory Development Centres, Related Instruction Campus selection

Admn.)
4.

Centres
5.

4.2.4Recruitment Procedures
Identification of vacancy by Department Head/div. Head

Advising newspaper/[Link]/ Application blank/Internal notification

Written Test/Initial Interview

Final Interview

53

Medical Check Up

Selection/Process

Induction/Training

On the job training

Regularization of Application

Fig No.4.2 Recruitment Process Chart 4.2.5 Mode of Recruitment for Freshers:
1. 2. 3.

Written Test: Conducted by Professional Agencies and/or by Company Psychological Test: Conducted by Industrial Psychologists Physical Endurance Test: Conducted jointly by Professional Agencies

and the Company(for selected categories only)

4.

Group Discussions: Conducted jointly by Professional Agencies and the

Company
5.

Preliminary Interview: By Professional Agency or jointly by Professional

agency and the Company

6.

Final Interview: By the Company with the assistance of an outside expert

and an Industrial Psychologist, if required. Pre-Employment Medical Check-up done by Companys approved medical institution. (Types of test done):
a) b) c) d)

Blood, urine normal test Blood grouping Motion analysis (bacteria) Eye testing
54

e)

Audiometric

Selection is based on the fitness certificate issued by the approved medical institution. 4.2.6 Antecedent Verification

1. After initial selection, the applicant will be asked to give the names and addresses

of 2 reference persons who are holding respectable/reputable positions in society.

2. The company will make confidential references to the reference persons regarding

the background of the applicant.

3. Final selection is based on the outcome of the reference.

4.2.7 Issue of Appointment Order

1. Appointment Order will be issued by the Head of P&A or by Managing Director. 2. Appointment Order will be issued in duplicate. 3. The duplicate copy is to be returned to the Head (P&A) duly signed by the

appointee in token of the acceptance of the terms and conditions mentioned in the Appointment Order.
4. The Appointment Order will specify the following: 1) Date of joining for duty 2) Period of training/probation 3) Functions and responsibilities 4) The Official to whom the appointee shall report 5) Notice period to be given in the case of discharge/resignation 6) Any other specific conditions.

4.2.8

Placement/Induction:

55

1.

The appointee will report to the Head (P&A) who will brief the appointee

regarding the general information about the Company and introduce the appointee to the concerned Division Head.
2.

After meeting the Division Head, the appointee will report to the Admn.-in-

Charge of the concerned division where hell be required to fill up various forms regarding PF, ESI, gratuity etc. The appointee will also fill up a joining report form. The Admn.-in-Charge will brief the appointee on the various procedures to be followed and will direct him to the concerned Department Head.
3.

Subsequently, the appointee will undergo an induction training programme

followed by on-the-job- training/probation for the specified period. 4.2.9 Performance Appraisals
1.

The appointee will be assessed by his immediate superior and the At the end of the training/probationary period, a performance appraisal

Department Head while hes undergoing the Training/probation.

2.

format will be forwarded by the P&A Department to the concerned Department. The concerned Department will do the Performance Appraisal and send back the Appraisal Form to the P&A Department with specific recommendations. On receipt of the recommendations, the P&A Department will process the necessary papers for the regularisation/confirmation/ extension of the training/probation as the case may be. However, the appointee will be given a feedback on the Performance Appraisal by the concerned Division Head in the presence of the Admn.-in-Charge, especially upon an adverse remark

4.2.10 Confirmation:
1.

On completion of the stipulated probation period, the appointee will be The confirmation order will be issued by the Head of P&A and will be In the absence of a Confirmation order in writing, the appointee will

confirmed in the service of the Company in writing.

2.

served on the appointee through the Department/Division Head.

3.

continue as a probationer, till such time the confirmation order is issued. 4.2.11 Promotional Policy
56

1. Up gradation Within the Level: In the normal course up gradation from lower grade to the next higher grade within one level will be given within a time-frame. 2. Promotion From Lower Level to Higher Level: Promotion from lower level to next higher level will be based on the following criteria.
1) 2)

Availability of a position in the higher level. Suitability of the candidate in terms of experience in the lower level,

prescribed qualification and aptitude.

3)

In case more number of candidates is available or promotion to a post in higher level the promotion will be based on written test and/or interview.

the next

Promoters shall be entitled to a applicable fitment benefit and a promotion increment in the higher grade.
4)

To the extent possible recruitment by internal promotions will be resorted

to, subject to availability of suitable candidates with required experience in the lower grade. Promotion will be based on written test and/or interview. However, recruitment from external sources will be resorted to if there are no suitable candidates available from within Assistant Officer/Foreman grade is the promotion grade for the workmen who are promoted to Management Cadre.
5)

Direct Recruitment to Management Cadre will be as Officers/Engineers. In

case of Fresh Post graduates in Professional Disciplines and Fresh Engineering graduates, the recruiters will be imparted on-the-job training for a period of 12 months and 18 months respectively before posting to the position
4.2.12 Compensation Policy

1.

Components of compensation package

57

1) 2) 3) time. 4)

Basic Pay Variable Dearness Allowance House Rent allowance at the applicable rates or reimbursement of house

rent and maintenance charges as per the norms fixed by the company from time to

Monthly production Incentive linked to the Production beyond a certain

level of production. Application only for level III and level II. 5)
2.

Uniform washing Allowance at the rates prescribed from time to time.

Fringe Benefit
1) Reimbursement of conveyance Reimbursement of conveyance expenses for two

wheelers? Four wheelers as per the eligibility criteria.

2) Childrens Education Assistance as per the eligibility criteria. 3) Professional Development expense reimbursement as per eligibility criteria. 4) Subsidized canteen facility/reimbursement of canteen subsidy based on attendance

as the case may be.

5) Reimbursement of Entertainment expenses depending upon eligibility criteria. 6) Holiday/LTA depending upon the eligibility . 7) Reimbursement of Annual membership fee of professional Bodies.

3.

Welfare Measures 1) 2) 3) Housing Loan Interest subsidy. Provision of Uniform and shoes. Medical reimbursement scheme.

58

4) to a

Reimbursement actual medical expense based on production of bills subject maximum of one month basic pay plus Dearness Allowance per year with

facility for accumulation on the unexpired balance without any upper ceiling. 5) 6) Loans for purchase computer system at a nominal rate of 2% per annum. Interest free loans facility for professional education of the management

staff subject to certain conditions. 7) Mediclaim cover for self and dependents on contributory basis for covering

hospitalization medical expenses. 8) Personal Accident coverage policy

4.2.13 Leave Benefits Casual Leave...10 days/yr Sick Leave..10 days/yr(can be accumulated upto 90 days) Earned Leave30 days/yr

1)

Out of the earnings for a particular year, not exceeding 30 days can be Accumulation of Earned Leave permissible upto 300 days during the entire For the purpose of encashment, the Basic Pay+DA(as on the 1st of January)

enchased during the succeeding year.

2)

service.
3)

divided by 30 days, will be reckoned irrespective of the time of encashment. 4) Leave Encashment for workmen

a) Scope: Apply to all workmen b) Responsibility: Head, HR in the respective locations

59

c) Eligibility: All regular employees can avail this benefit only once in a year. d) Only earned leave in credit as on Jan 1st of the current year will be enchased. e) Maximum number of earned leave that can be enchased shall be governed by the long term settlement in force in the respective locations. f) Administration: Salary as per LTS at respective locations for the previous month of encashment is taken as the base. g) Procedure: 1) Leave by Head (HR) of the respective location, counter signed by division heads and forwarded to the officer (admin) and functional head of HR shall authorize for payment.
2) Verification: All documents are checked.

5) Leave Encashment (Management Staff) a) SCOPE: Apply to all Management staff b) Eligibility: A maximum of 30 days earned leave can be enchased in a

calendar

year.

c) Amount: Basic Pay+DA for previous month of encashment will be taken as

the basis. 4.2.14 Leave Administration (Management Staff) Table. No.4.1 Leave Administration (Management Staff) Category Confirmed MS Probationers Casual Leave 10 10 Earned Leave 30 30 Sick Leave 10 10

Mgmt. Trainees

10

60

1) 2) 3)

Casual leave cannot be availed for more than 3days at stretch. Application for earned leave should be submitted 15 days in advance. Earned leave shall not be availed for more than 3 times a year.

A.) Leave Administration (workmen) [Link].4.2 Leave Administration Ossein Division Category Confirmed MS Probationers 0 Management Trainees 0 0 0 0 0 11 5 7 Casual leave Earned Leave Sick Leave

B.) Leave Administration [Link].4.3 Leave Administration of Gelatin Division Category Confirmed MS 10 1/20 5 Casual leave Earned Leave Sick Leave

Probationers Management Trainees

61

Probationers will not be allowed to en cash earned leave during probation period

a) Shift Timings: 1.

Ossein Division: 8:30 am to 4:30 pm

General shift

Relay shift:
1) 2) 3)

Shift Shift Shift

7:00 am to 3:00 pm 3:00 pm to 11:00pm 11:00 pm to 7:00 am

Saturdays 8:30 am to12:30pm (Admn. Office & Stores only)

2.

Gelatin Division: 9:00 am to 5:00 pm

General shift Relay shift:

1) Shift 7:30 am to 3:30 pm

2) Shift 3:30 pm to 11:30pm 3) Shift 1:30 pm to 7:30 am Saturdays 9:00 am to 1:00pm (Admn. Office & Stores only)
3.

Registered Office: Monday to Friday Saturdays 9:00 am to 5:00 pm 9:00 am to 1:00pm

4.2.15 Training policy

62

The training policy ensures that every employee is imparted training in different stages, on joining, during services, based on needs identified and career oriented including updating of skills, acquisition of additional; or specialized skills on a continuous basis to accomplish organizational goals. 4.2.16 Procedure for Training Programmes: 1) Identification of Training Need Training Need will be identified by the concerned Department Heads. While identifying the needs, the suggestions put forth by the participants in the previous years training programmes, will also be taken into account. Dy. M (T) will convene meetings at the Divisions /Registered Office in the month of January every year to assist the Department Heads to assess the training needs. Dy. M (T) will consolidate the Training needs and evolve a draft training plan in consultation with Head of P&A and circulate the draft to the Division Heads, by the 3 rd week of February every year. 2) Preparation of the Final Training Plan: Dy. M (T) will discuss with the Division Heads regarding the draft training plan. He will incorporate the changes, if any, in the plan and a final training plan will be prepared and submit to Head of P&A for inclusion in the Training Budget. After obtaining the Training Budget approved, Dy. M (T) will send copies of the Training plan to all concerned, latest by the third week of March every year 3) Conducting of the Training Programme: Dy.M (T) shall ensure that all the Training Programmes are conducted as per the schedule drawn up. Main steps to be followed are: Identifying Faculty: Internal: From the approved panel of internal faculty.

63

External: From the panel of faculties available in the Training Department or specific faculty suggested by the Division Heads. 4) Structuring the Programme: Fixing the date of training programme and venue in consultation with the Department/Division Heads. Drawing up the list of participants in consultation with all concerned and issuance of formal notice. Getting course material from the faculty concerned and making sufficient number of copies for circulation among participants. 5) Conducting of the Training Programme: Dy.M (T) will make arrangements for the smooth conduct of the programme on the dates/at the venue. 6) Getting Feedback on the Effectiveness of the Programme: Dy.M (T) will get the feedback on the effectiveness of the Training Programme by a three tier assessment method as follows Evaluation test: To evaluate the level of comprehension. 7) Feedback from Individuals At the end of the Training Programme a questionnaire will be circulated to all participants wherein the following parameters will be evaluated on a five point scale i.e. Excellent, Very good, Good, Average, And Poor. 8) Feedback from the Department/Division Heads After three months of conducting the Training programme, Dy.M (T) will send an evaluation sheet to the concerned Department/Division Heads to assess the effectiveness of the training programme with specific reference to the noticeable improvements in the following areas. 1. Performance. 2. Behaviour 3. Knowledge
64

9) Corrective Action: Based on the evaluations made by the participants as well as the Division Heads Dy.M (T) will initiate appropriate corrective action with focus on the following aspects.
a. Reviewing the course content/duration. b. Changing the faculty if needed. c. Retraining: the participants to make up the shortfall in performance/for

bringing about the desired attitudinal changes.

d. Restructuring the training programme to increase the usefulness to the

participants.

(10)

Improvements: Continuous improvement being the backbone of TQM HR strategy, the systems

and procedures are periodically improved and revamped if found necessary. Such improvements are reported to the corrective and Preventive action Committee Meetings 4.2.17 Assessment of Training for the Year [Link].4.4 Assessment of Training for the year

SI. NO

Name of Employee

Needs Identified

Areas of Development

Training required Internal External

Period when Employee can to spared

Suggested Faculty

Remark

65

Name of the participant Designation Division: OD/GD/RO Date of the program

4.2.18 Self-Evaluation Table. No 4.5 Self Evaluation form

SI Factor rated NO

Excellent

[Link]

Good

Average

Poor

Content of program

66

Usefulness of program

Faculty

1)Presentation skills

2)Communication skills

3)Knowledge of subject

Overall rating: Suggestion: Date: Sign

4.2.19 Departments Evaluation Form

Program: Department Period

67

Table .No.4.6 Department Evaluation Form Noticeable Name of Participants participants Performance Behaviour Knowledge changes observed in Remarks

4.2.20 Payroll Preparation Purpose: To Provide Guidelines for the Preparation of payroll in SAP programme. Scope: All end users in HR department Responsibility: Functional head of HR responsible for the implementation Basic data: Leave entries, over time entry, Shift change filled in in on daily basis Preparation: Enter details for the current months such as:
1) 2) 3) 4) 5) 6) 7) 8)

Hiring Leaving Training to probation Confirmation Stipend revision/increment Shift Allowance Production Incentive Canteen deduction
68

9) 10) 11) 12) 13) 14) 15) 16) 17)

Lunch allowance Society deduction HRD deduction Overtime Holiday wages Voluntary tax Changes in HLIS Changes in VLIS Welfare fund

4.2.21 ESI/PF Administration Employee state Insurance (ESI)- half yearly returns(Apr-sept) (Oct-March) PF- Annual Returns (March-Feb) Responsibility: Admin in charge of the respective location Coverage: All contract workers. Procedure:
1) 2) 3) 4) 5)

Procedure for membership and nomination (nomination from security in charge) Procedure for deduction Verification at divisions Verification at [Link] Remittance

4.1.22 Retirement
1)

Age of retirement
69

Every employee shall retire on the attainment of 58 years of age.

2)

Date of retirement

An employee will retire from the service on the last day of the month in which he superannuates.
3)

Notice of Superannuation

An employee attaining superannuation shall be given a prior written notice. 1 month in advance, indicating the date of his superannuation. During this Period, the employee will be allowed to exhaust the leave standing to his Credit. 4.2.22 Terminal Benefits An employee on superannuation shall be entitled to the following terminal benefits:
1) Gratuity@15days pays for every completed year of service. 2) Encashment of earned leave: the entire earned standing to the credit of the Of the

employee as on the date of superannuation will be allowed to be encased.

3) Salaries/wages up to the date of retirement

4.2.23 Service certificate An employee who superannuated shall be entailed for a service certificate on the date of superannuation.
a) Settlement of PF, Pension Schemes etc.

The papers regarding settlement of the PF, pension scheme etc. will be processed well in advance and forwarded to the authorities immediately after the superannuation of the employee concerned. The Company will follow up the matter and will ensure that the superannuated employee gets the benefits without much delay.

70

4.2.24 Manpower Strength [Link].4.7 Manpower Strength Ossein Division Gelatin Division Registered office Bamni plant Total

[Link]

32 116

46

35

18

131

Workmen

106

21

112

355

Total

148

152

56

130

486

4.2.25 Mediclaim Insurance Coverage This scheme is mainly intended for employees who go out of the purview of the coverage of ESI.
1) All employees covered by the medical reimbursement scheme, shall be covered

under a group Mediclaim Open policy for meeting the medical expenses on account of hospitalisation.
2) The employees should give a complete list of the persons who are wholly

dependent on the employee. The employee should keep on updating the list at the beginning of every year.
3) The annual premium will be calculated by the insurance company based on the age

of the dependents, and the premium will be paid by the Company in the first instance.
4) 50% of the premium will be borne by the Company. 71

5) Benefits under the Mediclaim policy will be available only for treatment connected

with hospitalisation for a minimum period of 24 hours.

6) The claims under the Mediclaim Policy will be forwarded to the insurers through

the Company and the amount realised will be released to the concerned employee through the Company.
7) The sum assured eligible under the Mediclaim Policy can be wholly availed of by a

single member of the family, in cases of emergency. In such cases, the remaining members of the family shall not be entitled for any benefit during that particular year. 4.2.26 Personal Accident Insurance Policy
1) This is a social security scheme fully contributed by the Company. 2) All the employees are covered under a Group Personal Accident Insurance

Policy, against the loss of earning capacity, sustained on account of accidents, and to cover the medical expenses relating to accidents.
3) This policy will cover accidents during round the clock, irrespective of

whether the employee is on duty or not.

4) The claims under this policy will be processed and forwarded by the

Company and the realisations will be credited to the employees through the Company. 4.2.27 Increment Policy
1) There will be two effective dates for granting annual increments, i.e.1st January

and 1st July of every year.

2)

Increments will not be granted as a matter of right or as a matter of course.

Granting of increments will be based on performance/achievement of individual objectives. Each employee will be subjected to performance appraisal on a scientific basis including self-assessment. Quantum of increments will also be linked to performance.
3) In the case of probationers, their first increment in the scale of pay will be

granted with effect from the date of confirmation. They will be entitled for their next increment on the nearest effective increment date which falls after the lapse of 6 months from the first increment. Thereafter, they will be entitled for their
72

regular annual increments on the said effective dates, subject to the eligibility criteria specified above.

4.2.28 Recognition for Achievements:

1) The Company has an Employee Involvement Scheme (Annexure 20). 2) Each employee is supposed to give minimum one suggestion per month. 3) The suggestions received will be scrutinised by a Committee constituted for

that purpose.
4) Based on the recommendations made by the Committee, the suggestions

will be implemented.
5) There will be a reward for each implemented suggestion- the concerned

employee will be informed in writing by the

6) Management and the reward will be given to the employee by the MD. 7) From the suggestions implemented, 3 best suggestions for a particular year

will be selected by the Committee and special rewards will be given to the concerned employees.
8) Those employees, whose suggestions are not implemented due to specific

reasons, will be intimated in writing, regarding the same. 4.2.29 Human Resource Information System A human resource information system (HRIS) is a system of Software and supporting computer hardware specifically designed to store and processes all HR information. Also known as HRMS human resources management system or less commonly HRIMS this system are the mainstay of modern HR departments. Traditionally human resources departments relied on multiple programs in each department. An HRIS integrates all of these programs through a common database and single-user interface. An HRIS combines separate HR system into a centralized database that performs the majority of HR transactions HRIS are particularly useful for payroll and benefits administration.

73

HRIS in NGIL uses Oracle Software. This HRIS database consists of

1. 2. 3. 4. 5. 6. 7. 8.

Employee profiles Training details Reminders Reports Mater forms Miscellaneous forms Payroll-MIS Administration details etc.

HRIS enlists employees, grade-wise, designation-wise gives their profile personal and professional details, training reports and other related reports like birthday blood group etc. It also gives access to leave register, increments lists, production incentive, cost of living Index and help work payrolls, bonus and salary payments.

74

4.3 MARKETING & BUSINESS DEVELOPMENT DEPARTMENT Marketing is functional organizational function, basic for its survival sustenance and growth. It has philosophical and strategic overtones for the individual organization, to the extent that this function aims at achieving some of the create a customer. This statement highlights the basic reason for the existence of any business organization. Marketing can be identified into types retail and corporate [Link] follows corporate business [Link] products are marketed directly to the customer or through dealers to the customers. 4.3.1 Marketing Functions
1. 2. 3. 4.

Identifying new markets Sales Sales review Ensuring customer satisfaction

4.3.2 Business Development Functions

1. 2. 3.

Conceptualizing new business Opportunities Project Identification and Feasibility Study Sourcing Know-how, preparation of action plan, selection of site, Plan, co-ordinate, implement and monitor the individual project.

compliance to regulations
4.

75

4.3.3 Marketing & business development department Managing Director Business Development team Head (SP) AGM (Marketing)

GM (MKtg&Bus Dev.)

Marketing Manager

Marketing Manager

Eng Mktng Officer Mktng

Fig .No 4.3.1 Structure of Marketing Department

76

4.3.4

Duties and responsibilities

1.

Marketing Manager: Responsible for all the Gelatin sales and

marketing in the export and domestic market. Coordinates the factory

2.

Dy. Manager (Marketing): Responsible for Ossein exports and buyback

scheme from the parent company. Coordinates with GD and handles DEPB and drawback procedures.
3.

Engineer (marketing): Responsible for all the DCP sales and marketing

in the export and domestic market. Assistant Officer: Documentation of all Gelatin sales. Assistant to DGM (C).

NGIL KCPL

Direct Marketing

Mitsubishi Corporation

Nitta Gelatin Inc

Nitta Gelatin Network Association

India, Colombo, UAE, Iran

Jordan, Egypt, Turkey

South East Asian Countries

US, Europe

Fig .No.4.3.2 Structure of Distribution Network 4.3.5 Major Competitors of NGIL Gelatin Table .No.4.2.1 D &F,Germany Gelice, Japan Sterling Pioneer
77

P.B,UK Rousselot Nippi,Japan K&K,US

IGCL Narmada Gelatin Raymon CJ

4.3.6

Marketing of NGIL Products

1)

Gelatin

The plant capacity of Gelatin Division is 4000 MT and 3500 MT of Gelatin is produced by NGIL in a year. Of which 70% of Gelatin is exported and the remaining 30% is sold in the domestic market. The major customer of Gelatin in the export market is Nitta Gelatin Inc. Major Countries where NGIL exports Gelatin are Japan, Jordan, Iran, Turkey, Dubai, Oman, Srilanka, Singapore, Netherlands, US, Canada, Australia, Egypt, Thailand, and Indonesia. Domestic market share covers the main cities like Bangalore, Mumbai, Pune and Chennai.
2)

Ossein NGIL manufactures Ossein under the technical guidance of NITTA & exports

Ossein to Nitta, Japan on a buy-back agreement. Also Ossein is used to manufacture Gelatin. NGIL is having is having an Ossein production capacity of 7000MT and set up facility to produce 5000MT Limed Ossein 4.3.7 Ossein comes in two types:
1. 2.

Dry Ossein Wet Ossein(limed Ossein)

78

Dry Ossein is exported to NGI and limed Ossein is sent to the Gelatin plant for manufacturing Gelatin. Ossein is an intermediary product and not sold in the market directly. Under the business collaboration with NITTA, NGIL supplies 70% of Ossein to NITTA on a 100% buy-back agreement; Remaining 30% is transported to Gelatin Division as a raw material for the production of Gelatin. There is a special transport arrangement to carry Limed Ossein from Koratty (Ossein Division) to Kakkanad (Gelatin Division).

4.3.8 Di-Calcium Phosphate (DCP) Di Calcium Phosphate is a by-product which is extracted while manufacturing Ossein from crushed bone. It is white, odourless, tasteless powder. It is an important constituent of mineral mixtures and is used in feed industry to mainly supplement calcium and phosphorus. Feed grade DCP manufactured from bones does not contain high level of fluorine, lead and arsenic impurities. NGIL is the market leader in the production of premium DCP (animal feed grade). With over twenty years of expertise, NGIL produces and supplies premium quality DCP to all major poultry and animal feed manufacturers in India. The plant capacity of Di Calcium Phosphate is 15,000 MT .50% DCP is sold in domestic market through agents and also by direct selling. The States where DCP sold are AP, Karnataka, Tamil nadu, Maharashtra, Orissa, and Chhattisgarh. In AP and Karnataka there are appointed agents to sell the DCP. Nearly 50% of the production is exported to countries like Thailand, Malaysia, Indonesia, Philippines, Singapore, and Sri Lanka and so on, for the same purpose. 4.3.9 NGIL DCP Sales
1)

Through the consignment

79

2) 3)

Export General

4.3.10 Alternatives of DCP: 1. Animal By-products

a) Meat meal b) Fish meal c) Liver meal d) Blood meal e) Hydrolyzed feather meal

2. Oyster meal

4.311 Chitosan This product has the applications in the fields of pharmaceuticals, medical, cosmetic food and agriculture water treatment etc. Currently Chitosan is manufacturing in gelatin division. This product is available in market with vanilla flavor, so that taste can be rated first.

Alternative of Collagen
a) Glucosamine HCL b) Glucosamine Sulphate

Other Marketing Efforts

80

Sales procedure Market enquiry Transportation Purchase Order Delivery Sales Invoice

4.2.12 Pricing Strategy NGIL has fixed a premium price for Gelatin. The total cost would include: Cost of production+ Packaging + Sales &Distribution+ profit = Market price.

4.2.13 Promotional Efforts Advertising and sales promotion activities: The quality of the product of NGIL is such that they do not require any aggressive sales promotional activities. Products are targeted to a particular group of customers and it is easy to identify and spot the customers and they are constantly being in touch with their customers. However on requirement basis NGIL conducts sales promotion activities by advertising the products through posters, event sponsorships and sales exhibitions and in Pharmacy Journals. Apart from these, frequent market visits are conducted to study new market entries. Test marketing and marketing share analysis are carried out to check the status of their products in the market. 4.3.14 Complaint Handling The technical team for handling customer complaints in [Link] receipt of any complaint from the customer, marketing department shall immediately register the complaint in the complaint register. The complaint shall be forwarded to Quality Assurance Department. QA dept shall investigate the root cause of the complaints he marketing dept shall then send the report received from QA on the investigation and action taken to the customer. Customer complaints are reviewed periodically. 4.3.15 Marketing Strategy Market oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organizations objectives, skills and resources and its
81

changing market opportunities. The aim of strategic planning is to shape the companys business and products so that they yield target profits and growth. The main marketing strategies adopted by NGIL are: Customization: Customization is the art of tailoring the product according to the needs of the customers. It is the ability to prepare individually designed products and communication to meet each customers requirements. Today customers are taking more individual initiative in determining what and how to buy. They log on to the internet; lookup information and evaluations of product or service offers; dialogue with suppliers, users and product critics; and make up their own minds about the best offer. NGIL believes in the strategy of customization. To achieve this objective the marketing department of NGIL undertake following activities.
1) Preparation of marketing plan (periodically both in short term & long term) 2) Modification of product to suit the customers needs. 3) Contact with Q.A to meet the standard of the product. 4) Analysing the competition 5) Attending customers complaints 6) Keeping alert with global scenario 7) Collection of marketing information (from customers, competitors and

regulatory authorities. The methods of collecting marketing information are through market surveys, telephonic conversation, direct meetings, and from the media. 4.4 STORES DEPARTMENT Stores department of NGIL is segregated into two namely, general stores and the engineering stores. General stores concentrates the storing of raw materials needed for production and engineering stores is concerned with the storing of tools and material equipments. 4.4.1 Objectives of storekeeping: There are three principal objectives of stores keeping: 1) To safeguard all goods in storage against losses

82

2) To have available all such goods ready for prompt delivery when properly authorized. 3) To provide maximum stores keeping service to the manufacturing and sales department at a minimum cost. 4.4.2 Function of Storekeeping Department:
a) b) c) d) e) f)

Receipt of materials into store Record keeping of materials in store Storage of materials Maintaining stores Issuing stores Co-ordination of storekeeping with materials control

4.4.3 Department Chart of Stores Department

GM (GD) (M.A. Xavier)

Sr. Off. (Stores)

83

[Link]

[Link].4.4 Structure of Stores Department

4.4 COMMERCIAL DEPARTMENT 4.4.1 Functions of Commercial Department:

1) Locating and selecting sources of supply for materials required. 2) Inter markets, supply, demand, price trends etc . 3) Viewing suppliers, representatives, arranging conferences and plan visits. 4) Requesting for quotations and conducting negotiations. 84

5) Procuring materials when required. 6) Verifying quality and quantity received. 7) Approving invoices and handling rejections and adjustments. 8) Maintaining records necessary for proper operation of its function. 9) Keeping informed on business trends, assembling and analysing pertinent data

on. 4.4.2 Purchasing Procedure: As per the quality manual, the purchasing procedure of Nittas Commercial/ purchase department is as follows:
1. Raw Material 1) 2) 3) 4) 5) 6) 7) 2. Fuel 1)

Purchase HCL as per the annual plan from the approved vendors Process chemical and packing materials Raise MPR for the process chemicals needed by the indenting department. Authorization of MPR by Head of Division. Purchase crushed bone as per annual plan from the approved vendors. Purchase hydrated lime as per the monthly plan from the approved vendors. Purchase from the approved vendors.

Purchase of diesel and furnace oil from the suppliers based on annual

budget.
2) 3) 4)

Engineering stores, spares, equipments and lab chemicals Raise MPR by indenting department. Authorization of MPR by Head of Division.

85

5)

Processing of MPR and purchase.

3. Maintenance Services 1) 2) 3)

Raise request note for annual maintenance contract by Head of Division. Award contract to the approved contractors. Purchase/service orders are reviewed for adequacy of relevant data viz.

Specification, delivery, prices, mode of inspection and approval of material, transportation etc. and the order is released after approval by Head of Commercial.
4)

Amendments to purchase orders are made by Head of Commercial after

obtaining concurrence from Head of Division/Finance.

86

4.4.3 Structure of Commercial Department

GM (Mtls) [Link]

Manager (Mtls) [Link] [Link] (Mtls) Anil Jcob

[Link] (Mtls) Lambert A.F

[Link] (Mtls) Dattan

Engineer (Mtls) Tishy Rajan Asst (Mtls) (2)

Officer (Mtls) Nandkukmar

Asst Officer (Mtls)

Kishore

Asst Officer (Mtls) Jaya

Asst Officer (Mtls) Kishore

Asst (Mtls)

Asst (Mtls) (2)

Fig .No 4.4 .1 Structure of commercial Department

87

4.4.4 Purchase Process

Collecting offers Get offer for supply from vendors

Benchmarking Price-trend history Price Comparison Market situation

Negotiation Based on bench marked price Mutual discussions Pressure tactics

Approval process Proposal made based on negotiation price Goes through approval cycle

Oder confirmation

Despatch

Goods Report Receive goods at store Complete quality check Move stock to unrestricted area

Monitor stock Position Regulate dispatches to Purchase Order issued match required to vendor inventory

[Link].4.4.2 Structure of Purchase Process

4.4.5 Vendor Management

1) 2) 3) 4) 5)

Order confirmation Dispatch Schedule Goods Receipt Quality Compliance Payment appraised of rating
88

4.4.6 Inventory Management

1) 2) 3) 4) 5)

Maintain sufficient stock to prevent production production stoppage Keep minimum cost Optimum levels fixed based on safety stock Aim is to maintain inventory around fixed limit Just in Time (JIT) concept-employed for selected material

4.4.7 Logistics
1) 2) 3)

Traditionally overlooked More important presently due to increased share of logistics cost in put cost Crushed bone and lime vendor managed transportation to NGIL managed

one started movement by costal shipping.

4)

Hydrochloric acid

Price control by way of long term contracts/higher tonnage vehicles

4.4.8 Warehousing
1) 2) 3)

Extended storage facility to meet fluctuating availability 3 outside warehouses for seasonal products Additional warehousing facility in planning

89

4.4 .9 Purchasing Procedure Receiving of MRP

Evaluation of MRP

Inviting Tenders

Selection of suppliers

Purchase Proposal

Approval from Finance Department

Purchase Order
90

Inspection and Storing

Fig .No.4.4.3 Structure of Purchasing Procedure

4.4.10 Salient Features of Commercial Functions

1) 2) 3) 4) 5) 6) 7) 8) 9)

The controls from Raw material stage Hygiene and sanitation Documentation Concept of traceability Concept of risk free raw material Assurance of safe raw material for manufacture of safe Gelatin Origin of cattle Certificate of Veterinary Doctors

10) Certificates accompany the loads 11) Maintenance of documents for traceability

91

4.5 SECRETARIAL DEPARTMENT 4.5.1 Functions of Secretarial Department The duties of a secretary may be classified into two divisions. Statutory duties and General duties
1.) Statutory or legal duties: a) Maintenance of statutory books of the company, such as Register of members, Share

Transfer Book, The Minute Book, Register of Charges, Register of investments, Register of Directors, Managing Director, Manager and Secretary
b) Preparing and feign the resolutions, reports and returns, copy of lease and agreement,

legal forms and other documents on behalf of the company

c) Supervising the issue of allotment of shares, share transfers and forfeiture of share,

stock, bonds and debentures of the company and the issue of share certificates and other legal documents
d) Keeping the common seal of the company in safe custody and using it only when

authorized by the Articles and the Board of Directors

e) Sending out copies of Balance Sheet, Profit and Loss Account and Auditors report.

2.) General Duties: 1) He has responsibility of properly organizing the office 92

2) In consultation with the Chairman of the Board, he must arrange for the conduct of

Board Meetings by preparing the agenda, issuing notices and taking notes of the proceedings at the meetings and recording minutes of same.
3) The secretary acts as a connecting link between the company and the shareholders 4) It is his duty to project the companys image in the minds of the public at large.

4.5.2 Structure of Secretarial Department

Managing Director (G. Suseelan)

DGM (Ia) Co. Secy. (Rajesh Kurup)

Off.

[Link].4.5.1 Structure of Secretarial Department

93

4.6 FINANCE DEPARTMENT Finance is the lifeblood of any business. It is an important section in the finance department. It plays an important role in the overall accounting procedure of the organisation. All the major works are done in the finance and accounts section. 4.6.1 Functions of Finance and Accounts Department
1) To check whether accounting system is properly maintained or not. 2) To see that posting of ledgers, passing of vouchers etc properly done. 3) Preparation of yearly budgets such as capital budgets, revenue budget etc. 4) Total analysis of income and expenditure accounts. 5) Preparation of yearly budgets such as capital budgets, revenue budgets etc. 6) Confirmation of the assets. 7) Capitalization of the assets. 8) Preparation of Trial Balance, Profit and loss account and balance Sheet. 9) Reconciliation of inter unit accounts.

94

10) Attending all audits like statutory audit and preparation of all schedules related to

profit&loss accounts and Balance sheet.

11) Disbursement of wages/salaries. 12) Scrutiny and approval of funds needed by various departments of the organization. 13) Loan recoveries. 14) Tax remittance. 15) P.F contribution remittance. 16) Leave encashment, retirement benefits, welfare, recoveries and remittances, medical

facility for accident compensation etc are provided.

4.6.2 Structure of Finance Department

Managing Director

GM(F&A)

AGM (F&A)

M (EDP)
95

O (A/CS)

PS

AM (F) MGR (FIN) O (FIN) DY .M (F)

O(Fin)

A.O (F)-2

Fig, No 4.6.1 Structure of Finance Department

4.6.3 Duties and Responsibility A.) General Manager (F&A) Overall financial management of NGIL and Bamni Proteins Limited Responsible for the following functional areas:
1) Planning, budgetary control, management information system, board notes and

concurrence of all work orders and executive sanction requests.

2) General accounts, preparation of final accounts and auditing, implementation of

accounting procedures.
3) Complying with the functions relating to sales tax, income tax, works contract tax, etc. 96

4) Identification of cost centres, cost control, furnishing cost data to the Managing

Director and division heads.

B.) Manager (F) Accountable for:

1) Efficient functioning of the finance and Accounts functions. 2) Timely submission of Reports and Accounts. 3) Generation of control information leading to expenditure reduction and revenue

augmentation.
4) Optimum utilization of assets and effective control of liabilities 5) Reduction in incidences of Taxes and duties due to permitted planning. 6) Working capital control and management.

C.) Manager (A)

1) Monitoring and control of all cash receipts and payments. 2) Arrangements for payments to creditors. 3) Follow-up and monitoring of sundry debtors. 4) Monitoring and management of overdraft facilities from banks. 5) Attending to other requirement of creditors such as issue of C-forms, priority

payments etc.

6) Monitoring and management of consignment, sales and stock of goods send on

consignment.
7) Collection and monitoring of dues from consignment agents.

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D.) Manager (EDP)

1) Maintenance and control of entire computer installations of the company including

head office and production division security at Gelatin Division, Kakkanad.

2) Monitoring the development of new application softwares based on the requirements

of the user department.

3) Acting as an interface between department and outside software developers for

developing new application new application softwares.

4) Managing the modification/corrections sort for by the various user departments. 5) Keeping maintenance of proper data/application software backups. 6) Licensing of software 7) Management of data transfer between division and head office 8)

Technical advice on all purchase required for Electronic Data Processing application

E.) DY. Manager (F) I

1) Preparation of company budgets 2) Preparation of periodical receipts on products costing. 3) Preparation of MIS reports for management review and decision making 4) Preparation of depreciation schedule 5) Ensure maintenance of Stores Ledger and Register 6) Compliance of sales tax particulars for filing returns

4.6.5 Other Financial Activities 1) Budgeting

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The company follows historical budgeting and prepares yearly budgets for the company as a whole. And also separate for registered office, Ossein and Gelatin divisions.

2) Investment Proposals Company is right now implementing a capital project on capacity expansion of Gelatin plant to capitalize on the economies of large scale production. In addition to the above the company is also contemplating massive investments on related areas of business to take care of any eventualities in the export market. 4.6.3 Significant Accounting Policies
1. Basis of Accounting Policies: The financial statement is prepared under the historical

cost convention on accrual basis as otherwise stated and in accordance with the applicable Accounting Standards
2. Uses of estimated : The presentation of financial statement in conformity with the

generally accepted accounting principles requires estimated and assumptions to be make that affect the reported amount of asset and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Differences between the actual result and estimated are recognised in the period in which the results are known/materialized.
3. Depreciation: Depreciation on plant and Machinery (other than service equipment) is

provided on straight line method .The rates adopted are as prescribed in schedule XVI of the companies act, 1956 read with circular no/1/186 dated 21.5.86 of the Department of company affairs, government of India except in respect of the item having value in excess of [Link] are depreciated at higher rates of the basis of the basis of technical evaluation by the management.
4. Investment: Long term inventories are stated at cost. Decline in value if any which is

considered temporary in nature is provided for:

5. Inventories: Inventories are valued at cost or net realized value item wise. For this

purpose the cost of bought out inventories comprise of the purchase cost of the items
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net of applicable tax/duty credits and cost of bringing such items in to the factory on a weighted average basis. The cost of manufactured inventories comprises of the direct cost of production plus appropriate overheads. The net realizable value of bought out inventories in taken at their current replacement value
6. Research and development: Research and development cost is expensed in the year

in which it is incurred unless the future benefit thereon is certain.

7. Income tax: The provision for current tax is made based on the tax payable under the

income tax act 1961 .Deferred tax assets/liabilities representing timing difference between accounting income and taxable income are recognized to the extend considered capable of being reversed in subsequent years.
8. Export incentives: Monetary items items are denominated in foreign currency are

reported at the exchange rate prevailing as at date of the Balance sheet and the resultant exchange gain/loss if any has been adjusted to profit and loss account to the extend they related to items other than liabilities incurred for acquiring fixed assets and those relating to liabilities for fixed assets which have been adjusted to the carrying cost of such assets.
9. Borrowing Cost: Borrowing costs that are directly attributable to the acquisition

construction or production of an asset that takes a substantial period of time to get ready for its indented use capitalized. Other borrowing costs are recognised as expenditure for the period in which they are incurred.

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4.7 PRODUCTION DEPARTMENT Manufacturing in its broadest sense is decidedly an art. There is three important phases of modern manufacturing.
1) Planning of Production 2) Supplying of men, machines and materials. 3) Controlling of production quality and process.

The production department sets targets during the periodical common division meeting. From this plan, daily production target is determined. The production detail is given to commercial department for procurement of raw materials. For the smooth going of production, the production department is always in contact with commercial department and stores department. The main objectives of production are.
1) To ensure that all the production will have consistent quality. 2) To achieve maximum customer satisfaction. 3) To foster team work for optimum productivity of men and machinery. 4) To meet the environment regulations with emphasis on safety of the entire employee

and maintain the best emphasis on safety of all the employees and maintain the best house keeping standard

4.7.1 Installed Capacity

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1. Ossein division

: : 7000MT per annum : 5000 MT per annum : 1500 MT per annum : : 4000 MT : : 2400per annum : 5000 per annu

Ossein Limed Ossein Di calcium Phosphate

2. Gelatin division

Gelatin
3. Bamni Protein ltd

Ossein Di calcium Phosphate

4.7.2

Production Department of Ossein Division

ED (HR&G)

ED (OD)

AGM (HR)

AGM (OD)

MGR(PRDN)

DY.M (CES) 102 Sr. Engg Foreman

Sr .Engg

DY.M(S)
AM (OD)

AO (3) Engg Shift Engg

AO (1)

[Link].4.7.1 Structure of Production Department of Ossein Division

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4.7.3 Production Department of Gelatin Division

Ed (Hr&G Admin)

GM (GD)

HEAD (HR) M(CES )) DY.M(P) SO(S) AM(CES Sr (Engr) Engr Shift AM(P) [Link] gr Engr shift DY.M(P)

[Link]

Engr

Engr Shift

AO sto
Forman

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[Link]. 4.7 .2 Structure of Production Department of Gelatin Division

4.7. 4 GELATIN MANUFACTURING PROCESS

[Link].4.7.3 Structure of manufacturing process Source: Collected from Companies website. 4.7.5 An Integrated Production Process: The manufacturing process for Gelatin involves seven distinct steps demineralization, pre-treatment, washing, extraction, purification, drying and finally sieving/blending.
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4.7.6 Basic Ingredients Processed with Quality Production Methods: Gelatin is produced from the connective tissue (collagen) of cattle, poultry, fish and pigs. It is recovered from collagen by using a process called hydrolysis. The specific source of collagen, and the treatment used to recover it, controls the composition of the Gelatin Key Process Variables (KPV) which have been identified throughout the Gelatin manufacturing process are tightly monitored and controlled to ensure the highest quality Gelatin is produced. 1) Bone chips: Fresh bone is a by-product of meat processing that is pre-treated to meet strict quality standards. The bone is first crushed to roughly chips. It is then degreased with scalding hot water, dried and sorted by size. Further inspection of the bone is done to ensure that it meets rigorous moisture, grease, sinew and particle size specifications. 2) Demineralization of Bone Chips: The small pieces of bone are then treated with diluted hydrochloric acid in a reverse flow process over a number of days to remove mineral salts (mainly phosphate). The resultant sponge like material is called Ossein. All excess acid is then removed by washing the Ossein with water. This process is closely monitored for temperature, flow and PH. 3) Pre-treatment (Acid or Alkaline): For Alkaline treated Type B (bone) gelatin, the Ossein is treated for a period of up to two months with calcium hydroxide (lime). During this process step, the collagen bonds are partially separated and any non-collagen proteins are removed. The lime solution is replaced several times during this process. For Acid treated Type B gelatin, the Ossein is soaked in a hydrochloric acid (HCl) solution for one day, washed and then extracted at a fairly low pH (4). 4) Washing:

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The Ossein is thoroughly washed with copious quantities of treated water to remove excess lime, neutralized with sulphuric acid and washed again to remove any excess salts. 5) Extraction: Gelatin is then extracted from the Ossein using a series of hot deionised water additions in stainless steel vessels equipped with temperature and flow control. The extracted gelatin solutions typically have a gel concentration of ~5%. The first extractions are the highest in gel strength and lowest in colour. The addition of increasingly hotter water continues until all soluble Gelatin has been removed from the Ossein. Typical gelatin yields are ~20%. 6) Purification/Concentration: The gelatin solution is exposed to a series of filtrations steps in order to remove any fats, grease or insoluble particles. This may include centrifugation, sheet filtration and ion exchange to remove any mineral salts. The gelatin solution is brought up to ~30% concentration via a multi-stage vacuum evaporator. 7) Drying: The concentrated, purified gelatin solution is then sterilized at 140 oC for bacterial control, after which it is chill set and extruded as noodles onto a stainless steel mesh belt. This belt carries the gel noodles through a series of chambers that are supplied with filtered, dehumidified and heated air. The dried gel is then ground into coarse granules and packaged. The moisture content of dried gelatin is typically 11-12%. 8) Sieving/Blending: As required by customer specifications, Gelatin may be sieved to remove fine particles. The blending of Gelatin components to meet customer requirements is the final process step. This is done to ensure uniformity of the final product. The blended gel can be packaged into super sacks, boxes, small bags or drums.

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4.8 TECHNICAL SUPPORT DEPARTMENT As mentioned earlier NGIL have the technical support from NGIL, Japan. For achieving this objective NGI appointed as Executive Director for the functioning The Organizational of the technical support department is given below chart of the technical support department is given below. 4.8.1 Structure of Technical department
Managing Director

ED (TECH)

DGM (R&D)

Mgr (TS)

AGM(QS)

Mgr (QA) 108

ASST Mgr (QR)

Sr O(QA)

Head (QC)

AO(F/CS )

AO(QA )

O (QC)

AO (QC)

Fig .No.4.9.1 structure of Technical Department

4.8.2 Duties and Functions The important duties of this department are
1) Research duties of this department are 2) Technical support to the employees 3) Quality assurance and Quality control 4) Quality surveying

1) R&D of New Product The primary function of R& D department is to conduct researches for new products and development new solutions. Each product has a finite commercial life. In order to be competitive, NGIL continuously needs to find ways for new technological development of product range. When the researching and developing new products, the R&D DGM and his staff take responsibility of performing the following key tasks.
1) Ensuring the new product meets the products specification 2) Researching the product according to allocated budget 3) Checking if the product needs production costs

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4) Delivering products in time and in full regulatory requirements and specified quality

levels 2) Technical support to the employees

1) Design develops and executes technical training programs for the plant. 2) 3)

Conduct annual training needs analysis and develop annual term training plan. Source and qualify training providers coordinate and implement technical training Programs and evaluate the trainings effectiveness.

3) Quality assurance and quality control The work of QAD is focused 1) Preventing the claims from customers In case of receiving such claims on quality of provided products and services the department starts searching the reasons and effects of the revealed discrepancies.

2) Enhancement of products and service quality To achieve this QAD should reach the following goals. 1. Continuous and consistent development, implementation and maintenance of quality assurance management system. 2. Staff training and compliance with the requirements of the quality assurance management. 3. Quality control over provided products and services in accordance with the Rules and Standards of the company. 4. Developing and making arrangements for enhancing the quality of provided products and services. 5. Organizing and conducting internal audit of the quality assurance management system.
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6. Organization and controlling corrective and preventing actions of quality management. 3) Quality Surveying The duties of quality surveyor are
1) The preparation of Bills and Schedules of Quantities of material labour and

services required in the construction and equipment of building or engineering.

2) The preparation and valuation of progressing and final payment in connection

with any contract or sub contract

3) The appraisal of the value of proposed construction or other structures already

erected
4) The preparation of specification when required so to do 5) Acting as arbitrator in cases of dispute in connection with building or

engineering work when required so to do.

6) To advise from time to time on cost management or value management

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Chapter 5 Observation, Suggestion and conclusion

5.1 Observations
1. The spirit of group work in NGIL leads the members to success. 2. The firm have a stable order(especially of society) 3. Infrastructure a layout made good production facility. 4. Qualified and skilled workers made the organization to technically compete.

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5. The Company have good working environment. 6. Workers health and safety are given prime importance in the organization. 7. A good coordination exists between different departments in NGIL.

Looking at the overall performance of the company some of the satisfying areas could be highlighted are: a) There is a continuous growth of income and turnover of the company. Turnover increased to Rs 182.47 crores during the year ended 31st March 2010 as compared to Rs 146.38 crores during the previous year. b) There is a continuous increase of sales and exports. 5.2 Suggestions
1) The company should expand volumes of production economize on the advantage of

higher production and there by augment the increasing trend in the domestic sale.
2) Control of manufacturing administration and selling expenses: raw material cost and

the production cost are increasing year by year. Thus these costs are to be further controlled by minimizing the wastage and improving the efficiency of workers.
3) Development of Bamni Plant: Taking into consideration of various facts like better

availability of raw materials, cheap [Link] would be a viable option to develop extend and even diversification the production in the Bamni plant by setting up new and modern plant.
4) The company can have a pooled purchasing system for the main raw material crushed

bone at the Bamni Plant and from there it can be transported to the Ossien division to reduce the landed cost of raw material and cost of production.
5) The company also venture into agro-based diversification programmes. 6) It was observed that there were very few young employees in the payroll of the

organization. Steps have to be taken to infuse fresh talent into the organization as they bring with them more energy and infuse fresh ideas into the system.

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7) The organization did not follow a systematic performance Appraisal system. The

present system followed in the organisation was out dated and manual in nature. There is an immediate need to make the system computerised user friendly and encompassing all levels of management.
8) Though the organization has implemented a payroll preparation system, it has not

been updated to include all the human resource functions in the organization. Though the management is aware of this deficiency corrective measures have yet to be taken. A more sophisticated but user friendly software to help in payroll preparation helps to save man hours and power.

5.3 Conclusion Nitta Gelatin India Ltd. has extended its own wings in the Gelatin industry successfully as the Company has global presence and has received various awards for its Excellence. The Company has well advanced and automated machinery in its production unit and skilled manpower for manufacturing its formulations. All the management team members are well qualified and experienced persons to carry out business operations in a most profitable manner and generating new opportunities for the expansion and development of the business to the global level. The Company is financially sound which ensures its continual and assured growth in the future. The Organizational Study at Nitta Gelatin India Ltd helped me gain an insight about the overall function of the various departments. The smooth functioning of various departments would enable the company to reach great heights. The coordination of different departments, planning and organizing the activities help the company to attain high standards by providing quality services. Nitta Gelatin Inc. has already captured a major portion of the market share in the Gelatin industry. The company believes in innovations and holds openness to recent trends in market and technology. Its better relationship between management and employee drives the business growth. The company has a good working environment and cordial relationship is maintained between all departments for the smooth functioning and achievement of the
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organizational goal of maintaining the market leadership and companys image among the clients. They have achieved the enviable heights by their strong employer- employee relationship, hard work and commitment of quality besides rendering quality services at the right time to the clients. The promoters and management are fully focused on continuous improvement in the market. Nitta Gelatin is trying to expand their business all over the world with the introduction of consumer products all over India and across the world.

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