CHAPTER I

INTRODUCTION

1.1 INDUSTRY PROFILE

Outlook of Indian Edible Oil Industry

Edible oils constitute an important component of food expenditure in Indian
households. Edible oil industry is one of the most important industries of agriculture sector in
India. India is a leading player in the industry, with world’s largest importer from Indonesia
and Malaysia and third largest consumer. India is the fourth largest oil seed-producing
country in the world after USA, China and Brazil. In all, nine types of oilseeds are produced
in India. Of the nine, soya bean, ground nut, and mustard are the major oilseeds produced in
the country. The growth of edible oil consumption and increasing population coupled with
limited availability of oil seeds and shifting of acreage to other crops have resulted in
continuous demand supply gap for edible oil which is being met by imports. Further import
of edible oil is subject to change in custom duty rates between crude oil and refined oil which
can affect domestic producers and refiners. Apart from Indian custom duty rates, Indian
edible oil industry is also susceptible to the policies of Indonesia and Malaysia, the two
largest exporting countries of edible oil. The article delineates on various reasons for decline
in edible oil production along with prospects, issues and challenges faced by the industry.

Overview of Indian Edible Oil Industry

India plays an important role in the global edible oil market, accounting for 10-12%
share of consumption; 6-8% share of oilseed production; 4-6% share of edible oil production,
and 12-14% share of world edible oil imports for OY151. Furthermore, the industry is highly
dependent on availability of raw material, domestic production of oil seeds, annual rainfall,
global price fluctuations and consumer preferences. Availability of edible oil in India has
shown a compound annual growth rate (CAGR) of 7.32% during OY06-OY15 with y-o-y
growth of 8.02% in OY15 over OY14, whereas the growth in population has remained at
CAGR of 1.29% during 2006-2015. Majority of the demand supply gap of edible oil in India
is being filled through imports.

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The

growth in production of domestic edible oil has not been able to keep pace with the growth of
consumption. Thus, this gap is being met by the imports that account for almost 55-65% of
the total oil consumption during past five years. Continuous increase in the gap between
demand and supply of edible oil has forced India to do huge import from leading exporter
countries of edible oil. The demand supply gap is becoming wider mainly due to limited
availability of oil seeds, shifting of acreage to other crops and increase in demand of edible
oil.

More than 14 million tonnes of edible oil was imported with a total value of
Rs.64,396.49crore during OYFY15. In terms of volumes, crude edible oil contributes about
89% and refined oil contributes about 11% of the total import during OYFY15. Of the 89%
of imported crude edible oil, palm oil, soybean oil and sunflower oil contributes about 54%,

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21% and 11%, respectively. India is importing edible oil from Indonesia, Malaysia, Argentina
and Ukraine contributing about 36%, 23%, 17% and 13%, respectively, of total imports.

Demand of edible oil is mainly driven by increase in per capita consumption of edible
oil, rising income levels and improvement of living standards. However, the Indian edible oil
market continues to be underpenetrated as current per capita consumption level of India (at
14.4 Kg/year for 2014-15) is much lower than global averages (24 kg/year). Furthermore,
domestic consumption of edible oil is expected to increase with enhancement in income level
and population.

Constraints in Oil Seeds Production

1. Oilseed crops are largely grown under rain-fed condition (>70%) and are more prone to
biotic and a-biotic stresses. Only one fourth of oilseed producing area remains under the
irrigation.

2. Oilseeds are energy rich crops but are grown under energy starved conditions (with
minimum inputs with high risk).

3. Majority of oilseed growers (more than 85%) are small and marginal farmers having poor
resource base.

4. High seed rate (number of seeds (Kg) to be used per hector or acre for maximum yield)
and cost of seeds coupled with non-availability of quality seeds of varieties and hybrids.

5. Limited adoption of improved varieties and technologies.

6. Unorganized marketing infrastructure and procurement mechanism.

7. External price shock on account of dependence on import is a major challenge in this
sector.

8. The cultivation of oil seed farms such as palm has long gestation period of about 3-7 years
before the cultivators could actually begin to derive benefit from thereof.

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Trend of Refined and Crude Oil Import in Terms of Volumes and Duty

The current duty differential between CPO and RBD (refined, bleached, and diodized)
stands at 7.5%, which provides protection to domestic refiners against competition from
imported refined oils to certain extent.

The increase in export duty by Indonesia on CPO has adversely affected the refining
industries in India due to narrowing spread between crude and refined oil in global markets
OY15. The spread during Q3FY14 between CPO and RBD has narrowed to as low as about
$10 a tonne, thus adversely impacting the profitability margins of domestic refining
industries as most of the domestic trades have sought for import of RBD than purchasing
from domestic players. In order to counter the same during January 2014, Indian government
has raised the import duty on RBD to 10% from 7.5%, while that on CPO was kept
unchanged at 2.5% resulting in increase in differential duty between RBD and CPO at 7.5%

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expansion of cultivation of Oil Palm and tree borne oilseeds in watersheds and wastelands.Area expansion under palm oil fell by over 50% over the last couple of years due to low prices of crude palm oil and poor rainfall. Thus. Indian Edible oil Industry has witnessed financial stress due to droughts.50% from 7. import duty for RBD was increased to 20% from 15% and for CPO it was increased to 12. use of fallow land after paddy/potato cultivation. for components like seed production. diversification of area from low yielding cereals crops to oilseeds crops. increasing availability of quality planting material enhancing procurement of oilseeds and collection. Mini Mission-I focuses on oilseeds. II and III. Going forward. net duty differential was being maintained at 7. India imports nearly 67% of its edible oil requirements.5%. edible oil sellers are finding it more convenient to import refined palm oil directly from Malaysia and Indonesia and sell it in the domestic market thus placing the edible oil processing units to operate at hair line margins or in worst case scenario 5|Page . There are three mini missions in this scheme viz. Mini- mission-I. The mission aims to enhance production of oilseed from 28.93 million tonnes (average of 11th five year plan) to 35. the rest is being met from domestic production.from 5%. the industry’s profitability is vulnerable to any reduction in this duty differential. However. inter-cropping of oilseeds with cereals/ pulses/ sugarcane. Furthermore. mini-kits.25 lakh hectare under oil palm cultivation with increase in productivity of Fresh Fruit Bunches (FFB) from 4927 kg/ha to 15. increasing irrigation coverage under oilseeds from 26% to 36%. Though the duty differential between crude andrefined palm oil is 7. Intervention of Government to Tackle Import of Edible Oil Government of India is promoting National Mission on Oilseeds and Oil Palm (NMOOP) during 2012-17 to achieve objectives such as increasing Seed Replacement Ratio (SRR) in oil crops with focus on Varietal Replacement. The cost of interventions under the mission was in the ratio of 75:25 between center and states. and processing of tree borne oilseeds. rising production costs and cheaper imports thus forcing several small firms to shut shop.000 kg/ha by end of 12th five year plan. adaptive research being implemented through central agencies such as State Agricultural Universities (SAU) and Indian Council of Agricultural Research (ICAR) institute are being funded through 100% central support.50% during September 2015.5% to protect the domestic industry. Front Line Demonstration (FLD).51 million tonnes by 2016-17 and to bring additional area of 1. Mini Mission II on oil palm and Mini Mission III on tree-borne oilseed (TBOs).

chocolate & confectionary fats. Outlook The long-term outlook of edible oil demand in India is favorable on expectation of increasing population. “BB”and “B”categories on account of small scale of operations of the entities. As depicted below. anticipated sales volumes and profitability margins from the specialty fats business with comprehensive product range including bakery shortening’s. The near-term outlook for the edible oil companies is expected to be stable on steady edible oil domestic demand and improvement in operating margin due to increasing refining operation. susceptibility of profitability to volatility in raw material prices and intense competition. 6|Page . increasing proportion of middle-class population and steadily rising affluence levels. movement of domestic edible oil prices. performance of Indian Rupee against US Dollar. of the total 67 edible oil companies rated by CARE as on July 11. Rating Dispersion CARE’s ratings in the edible oil sector fall predominantly in the “BBB”. The performance of the companies in edible oil sector for medium term period will depend upon the demand of CPO in India post recent increase in import duties on refined edible oils. increase in per capita consumption which in turn would be driven by changing lifestyles. growing urbanization.wherein the units are small the operations have become unvailable. about 35% fall under the ‘investment grade’ category. 2016. ice cream fats and a range of cooking oils.

Vanniaperumal was the founder of the Idhayam Group in the year 1986.R. Growth…Growth…and more Growth… Like learning.V.V. That. Under his leadership. IDHAYAM oil has lit the lamp of prosperity and health in millions of homes. He had three illustrious sons who built up the business empire in edible sesame oil as traditional family business. Rajendran.V & SONS EDIBLE OIL PVT LTD 1. Mr. Rajendran passed away in the year 1994 at the age of 65. since 1943. there is no end to growth in business. 30 kms from Madurai airport.R.V.Thendralto bring the business to greater heights. Commitment to quality was their key to success. Business is enthusiasm. V.V. 7|Page .V.V. Being the eldest son. achievement and satisfaction. Mr.Muthu. V. son of Mr. with an experience of more than 43 years launched sesame oil in a new consumer packing in the brand name IDHAYAM. The Group was built with the main object ofsincerity and hard work.2 COMPANY PROFILE Mr. Mr.Muthu consider as blessing. the company moved towards automation in production and packaging. Their business base was constructed in the business town.V. South India.V.V.Vanniaperumal has an exemplary track record in the business world of Tamil Nadu. It is performance. led his brothers. V.R.R. and increased domestic as well as export sales. MR.V.Sathyam and Mr.Virudhunagar. He.V. Mr.

carefully selected sesame seeds are mechanically cleaned. The high unsaturation of Sesame oil. Profile the Business Never compromising on its premium raw materials. Product Development The company is constantly doing research and development to provide our customers with high quality. TAHINI caters to the need of calcium among women and children. due to the presence of almost equal levels of oleic and linoleic acid along with the natural antioxidant compounds render many favourable health attributes viz. DELIT. Palm jaggery. is used in the production of IDHAYAM sesame oil. In 2005. hypocholesteremic and cardiac friendly ‘heart friendly’. the specially. In 2005. the name IDHAYAM. innovative products. the company innovated a health care product for ‘oil pulling’ under the brand name – IDHAYAM WEALTH.. Appalam is a popular dish of south Indians. which has the properties of a preservative. and SIM SIM. sweet-coated sesame seeds. Selling 15000 tonnes annually. That is brought into the market under the brand name – TAHINI. which means ‘Heart’. cleaned sesame seeds were packed in small packs and marketed under the brand name SAMBANDHI. the company launched wide varieties of appalam (papped) under the brand name – DOTS in different flavours. the company is placed as the leader in sesame oil industry in India. The company packs and trades sesame oil under three brand names – IDHAYAM. the company has innovated a new product.Origin of the Brand IDHAYAMthe name gets its origin from ‘Hriday’ a Sanskrit word. keeping the Calcium content of sesame seeds in mind. Thus. In 2001. In 1992. 8|Page .

they believe that they can offer a mutually beneficial relationship to their business partners for continued growth. With a long-term approach to their business goal. Russia. the company is ever receptive to market demands. Vision To be a leading and respected company in providing high quality edible oils with worldwide visibility. Switzerland. They can offer all their products with their brand name or with a private brand name. Quality assurance activities are carried by their well trained staff using sophisticated equipment to ensure that their products will arrive at their customers doorstep virtually free from defects. well into 21 st century. In 2006. they make cooking more delightful and enjoyable. Over the years they have proven their selves to be the preferred supplier of edible oils. if anyone prefer. major distributors and leading retail systems in the operating in the face of the ever – changing global economy. Canada. the company started manufacture of Peanut oil. These oils not only enhance the flavour of any dish. 9|Page . Sri Lanka. Denmark. Port Louis. Gulf Countries. They sell their products to more than 10 countries with customer base in USA.‘GARGLING WITH SESMAE OIL’. which increases immunity and prevents our body from many major diseases. UK. Norway. Australia. They built long term relationships with the most reliable suppliers of raw materials in the country. With their commitment and track record in the field. They are dedicated to remain at the forefront of the evolution so as to serve customer better. IDHAYAM HARDIL mustard oil for Northen States of India. Malaysia. South Africa. France. a deep frying medium and marketed under the brand name – IDHAYAM MANTRA. Ayurveda recommends the process. New Zealand. Singapore. Mauritius and Scotland. The company launched its new product.

1986) The IDHAYAM Company produced their first product in the name ofIDHAYAM Gingelly oil. striving to achieve worldwide recognition as a leading supplier in the industry.Mission Dedicated to deliver premium quality sesame oil through continuous improvement in quality with an uncompromised level of service. 10 | P a g e . investment in process technology. This product reaches many people to use of it. human resources and frequent update of R & D. Branches Branch Products Production Virudhunagar Sesame Oil Plant 1 Villipathiri Sesame Oil Plant 2 Varaloti Groundnut Oil Plant 3 Types of Products  Idhayam (Sesame Oil. innovative packaging. It introduced in the year of 1986. And it earns more profit to develop their business.

And the Delit is made by only the white sesame seed. black seed and black and white seed mixed product.  Sambanthi (Sesame Seeds. 1986) The Sambanthi sesame seeds also introduced in the same year of 1986. 11 | P a g e . 1996) The Delit is introduced in the year of 1996.  Idhayam Delit (Sesame Oil. This product includes three types of products white seed. This product is very costly product in the IDHAYAM products.

 Dots (Appalam. 2001) Dots appalam directly purchasing from the purchasing from Chennai and it will pack by the IDHAYAM Dots labels and then it goes to sale. 2004) SimSim sesame oil introduced in the year of 2004. And it is the minimum cost oil to buy everyone. 12 | P a g e .  SimSim (Sesame Oil.This is also the sesame oil.

The sesame seed filled with the sugar water. 2005) IDHAYAM introduced wealth for the oil pulling concept.  Tahini (Sweet Seed. 2005) Tahini is the different product from the IDHAYAM Company. It is the sweet seed to eat. And the oil reaches many people. 13 | P a g e . The company give the ads to promote the oil polling concept.  Idhayam Wealth(Oil Pulling.

14 | P a g e . This product saleis too equal to the sesame oil.  Idhayam Hardil (Mustard Oil.  Mantra (Peanut Oil. 2006) Hardil oil purchase from the outside and it will packed by the IDHAYAM and it will move to the sales. It is the peanut oil. 2006) The Mantra oil is introduced in 2006.

 Vanga (Sesame Oil. 2009) The Vanga refined oil purchase from the outside and it will pack by the IDHAYAM then it goes to sales 15 | P a g e .

V & SONS EDIBLE OILS PVT LTD 16 | P a g e .3 ORGANISATION CHART OF THE V.V.1.

1 PRODUCTION DEPARTMENT 17 | P a g e . CHAPTER II 2.

The manager must make sure that work is carried out smoothly. Assistant Manager 18 | P a g e . Production is the functional area responsible for turning inputs into finished outputs through a series of production processes. Four Production Sub-Function  Production and Planning  Purchasing  Storing  Design and Technical Support Production Flow Chart PRODUCTION MANAGER ASSITANT MANAGERS SKILLED WORKERS LABOURS Production Manager Responsiblefor entire production activities. The production manager is responsible for making sure that raw materials are provided and made into finished goods effectively. and must supervise procedures for making work more efficient and more enjoyable.

1 Diverter . Unskilled Workers  To give the consumer quality products. Cleaning the Seeds Two Buhler Machines for cleaning the seeds. Q2B Capacity Per Hour – 4000 Kg (Seeds) 2.A 19 | P a g e . 1. The Assistant managers will help the Manager and the assistant manager controls the all workers.  To maintain the quality of the products.  To increase the productivity  To reduce the cost of production & wastages. Skilled Workers Maintain attendance and monitoring activities for both workers and machines. Q2A Capacity Per Hour – 2000 Kg (Seeds) BUHLER FLOW CHART In Take Hopper Elevator .

B Aspirator .5 Bin In Take Hopper The gingerly seeds will fill into the hopper by the elevators. The capacity of hopper is 100 bags.A Classifier .2 Hopper De-stoner Declassified Elevator .A Aspirator . Elevator 20 | P a g e .B Aspirator Aspirator Roller Box Roller Box Elevator . Classifier . There are three types of sesame seed (Red seed. White seed and Black seed) mixing for get the better quality oil.B Elevator .3 Elevator .4 Diverter .

And the weighted seeds move to the next cleaning process. Aspirator Aspirator helps to identify the weight less seeds and weighted seeds. It moves the seeds fast and quick. De–Stoner To separate the stones mixed with the seeds. The 4 sub rollers in the roller box to remove the iron particles. Two elevators used to move the seed. Classifier It is used to remove the sticks. The aspirator works with the help of air. Roller box This is used to remove the small iron particles in the seeds. First sub de-stoner removes the big size stones. PRODUCTION PROCESS FROM CLEANING UNIT 21 | P a g e . Finally the third sub classifier removes the small sticks and dust. The first sub classifier removes the large size sticks. The air will remove the weight less seeds. Two sub de-stoner in the De-Stoner. And the second sub de-stoner removes small size stones. 30 conveyer boxes attached in the elevator. and other dusts. The 4 rollers are doing the same process. Elevator is used to move the seeds into the next level of cleaning process. And the second sub classifier filters the medium size sticks. There are 3 sub classifiers in the classifier.

1STCrush 22 | P a g e . The labours move the bags into the crushing. 1ST CRUSH Sample Sample LAB TEST UNDER GROUND TANK 2ST CRUSH Sample LAB TEST Sample 1st FILTER 2nd FILTER Sample OVERHEAD TANK CENTRIFUGE PACKAGE SECTION FILTER From Cleaning Unit After cleaning the seed it will goes to the manufacturing of products. The seeds go to the crushing machine.

Under Ground Tank After the crushing the oil will be sent to the tank to store the unfiltered oil. to get more oil from the seed. Packing Section 23 | P a g e .75 meters. and width 0. 2ND Filter Once again the oil will send to the 2nd filter to get more purified oil. Overhead Tank The filtered oil will be stored in the overhead tank for another process of cleaning. Thelabours help to get the oil cakes and pack to sale. 1STFilter The stored oil will pump to the 1 st filter to clean the oil. The ratio of jaggery mix one kg per 75 kg seeds.After the first crush the oil cake will come out from the machine. Underground tank sizes is height 2 meters. Sample Oil Each and every time the sample oil will go to the lab for check the fat contents. And it will goes to the first tank. Finally it will store in the overhead tank. The jaggeries add with the first crush. length 2 meters. It will clean the oil and get purified oil. 2NDCrush Again it will be move to another crusher. The stored underground oil goes to the lab test. The stream will helps to easily get the oil form the crushing. The oil will cross through 13 cotton filter. It filters the oil with the help of first air compressor. It is the first crush to get the oil from the sesame seeds. Second filter also use the air compressor to pumping the oil. Centrifuge Filter The next process is to remove the dusts from the oil.

PACKING DEPARTMENT PACKING PROCESS 24 | P a g e . All process completed the cleaned oil move to the packing section tank for the packing. it will be sent to the packing section tank. Finally.

The capacity of each tank is 2000 lt. There four overhead tanks for storing the cleaned oil. PACKING Y FILLING Y OVER HEAD FILTER TANK FILTER TANK PACKING MACHINE SEND TO WEIGHT CARTON WEIGHT GODOWN TEST BOX TEST WEIGHT TEST STOCK AT DESPACH GODOWN OF GOODS OUTER LAB TESTING Packing Overhead Tank The output will store in the overhead tank. At the production time totally 8000 lt will be stored in the overhead tanks. 25 | P a g e .

The vans used to send the goods within the India. Send to Godown After packing the goods moves to the godown. Filling Tank And the cleaned oil will stored in the filling tank for packing. The conveyer helps to move the packed pouches and cans into the weight test. Despatch of Goods The finished goods will be despatch by van or container from godown. Outer Lab Testing 26 | P a g e . This filtered oil directly sent to the filing tank. Weight Test And the packed pouches and cans will move for check the weights. One machine for filing the cans and other 3 machines are filing the pouches. After finishing each and every shift the stock detail will maintain by the godown incharge and the report will submit to the branch manager.Y Filter The final filter in the packing section. Carton Box The Carton Box will pack the number of cans and pouches into the box. This box also helps to pack the pouches and cans with the use of plastic cover. The 4 packing machine for pack the oil. And the containers used to exports to the other countries. Stock at Godown The finished goods are stored in the godown for stock maintaining. Packing Machine The packing machine will automatically fill oil in the pouch and cans. The capacity of the filing tank is 4000 lt to pack the oil. The two conveyers used to move the packed box to the godown.

If the report is not satisfied the oil will go to the reprocess to increase the quality. 27 | P a g e .2 PURCHASE DEPAERMENT Purchasing is the first phase of Material Management. 2. Lab Tests The oil will check within the lab of the Organisation. And the reports will send by the association to the IDHAYAM Head Office. Purchasing means procurement of goods and services from some external agencies. from some agency or source outside the organisation. There are  Free Fatty Acid  Moisture Content  Iodine Value  Bellier Turbidity Temperature  Argemone Oil Test  Soap Content  Boudouin Test  Peroxide Value Outside Lab Test The produced oil will send to the Chennai. spare parts and services or semi – finished goods. The object of purchase department is to arrange the supply of materials. Eight contents importance to the oil. The finished goods will give the lab test to the outside of organisation. Tamil Nadu Oil & Seeds Association (CTOSA) to check the eight contents. required by the organisation to produce the desired product.

The company purchase the Sesame Seeds. After.  Red Seed  Black Seed  White Seed Season of Purchase The company will buy raw material from the all over India. it will check by the experts of the company. And the company give the importance to the quality of the raw material not for the price. verification of the raw material the next day total amount will pay to the certain parties through the net banking. If the raw materials not satisfy the experts. March Payment of Purchase The company pay cash through the net banking.  Thirukovilur  JeyamKondan  Puttur  Thirusenkodu  Trichy Tamil Nadu Commitee Purchase (Tender) 28 | P a g e .  Tamil Nadu – March. The raw material can purchase on the basis of the season of harvesting. Types of Sesame Seeds There are three types of sesame seed was used to the production. August  North India – November. Groundnut Seeds. that will return to the particular seller. and Jaggery from the outsiders. Direct Purchase The Direct Purchase will make within the Tamil Nadu. June  South India – July. When the raw materials arrived to the factory.

Yearly once meet for the formers. And ask those needs and demands. The locations of tender within the Tamil Nadu. Purchase Flow Chart PURCHASE MANAGER OFFICER JUNIOR OFFICER 29 | P a g e . Committee purchase of weights of the bags will 75 kgs and 80 kgs.  Virudhachalam  Thindivanam  Vilupuram  Senji  GurunchiPari  Ullundhurpettai Other States The company will purchase the raw material from the outside of the Tamil Nadu also.  HARDIL (Mustard Oil) is bought from the North India and it will pack by the IDHAYAM HARDIL labels and then it goes to sale. To advices farmers how to produces the sesame seeds.  Andra Pradesh  Mysore  Gujarat  Asham  Kolkata  Orisa  Maharastra  New Delhi  Udhra Pradesh  Mathiya Pradesh Purchasing Finished Goods From Outside  DOTS (Appalam) was purchasing from Chennai and it will pack by the IDHAYAM DOTS labels and then it goes to sale.

The benefits of the completing targets: Incentives Rs – 5 per 20 lt. They are follows 1. 2.3 SALES DEPARTMENT A sale is the exchange of a commodity or money as the price of a good or a service. Salem – 60 Distributors. Target of Sales The Company gives the target for the whole sellers 3 Targets per year.2. Sales is activity related to selling or the amount of goods or services sold in a given time period. Chennai – 50 Distributors. Comparing to 2014 – 2015 sales of good 2015 – 2016 sales of good increased to 50%. 30 | P a g e . Distributors within India There are many distributors within the India.

3. Direct Exports. The goods send via the Chennai and Thuthukudi Ports. The sales volumes of the exports are follows: USA – 30% SINGAPORE – 25% OTHERS – 45% Deemed Exports Any parties buy the goods from the IDHAYAM and they change the label and sell to the third parties. 2. Other Districts – 74 Distributors. (First. The company pays the Chipping Bill and Bill of Leading for the each and every Export of the products. There are 1. First. Exporting Countries  USA (CALIFORNIA. 4. NEW YORK CITY and etc.)  UK (ENGLAND. parties pay the money after the company will send the goods via Ship. The Exporters will follow the same way of sending the goods.) 31 | P a g e . The exports will categorize into two types. And the direct exports only through the Dollars. No MRP (Market Retail Price) in the label of the product. Deemed Exports. They called as Deemed Exports. Exports The company will do the business within India and outside India also. Direct Exports The company will directly sell their products to the parties. SCOTLAND and etc. parties pay the money after the company will send the goods via Ship. No MRP (Market Retail Price) in the label of the product). The dealings made by only mail. All India – 450 Distributors.The dealings made by only mail.

Contribution to Profit 3. Time Delivery 5. Achieve the Target Order Sales Department Flow Chart SALES MANAGER ASSISTANT MANAGER JUNIOR MANAGER SENIOR ASSISTANT OFFICER 32 | P a g e . Continuous Growth 4.) Objectives of Sales 1. Customer Satisfaction 6. Sales Volume 2. DUBAI and etc.  UAE (SAUDI ARABIA.

Quantity Discounts to the Distributors. 2. 4. The company will conduct the exhibition to promote the business in the various locations – Chennai. SENIOR OFFICE JUNIOR OFFICER OFFICER ASSISTANT 2. 5. Kolkata. 3. To promote the oil pulling concepts to consumers via give the samples to the public. Sales Promotion Sales Promotion refers to those marketing activities that stimulate consumer shows and expositions. Kerala and etc. 200 ml sesame oil pouch gifted for who bought above Rs. The projects students will help to join 10 people in the one year of subscription of the oil pulling. Mumbai.1000 in the super markets. Sales Promotion Techniques Used by IDHAYAM 1. They give the assignment to the project students.4 MARKETING DEPARTMENT The Marketing Department will handle by the Idhayam Company Representative (ICR). Bangalore. Including all exporting countries. 33 | P a g e . The Representative goes to the every branch in the India. And they know about the any defects in the product.

To attract new customers. 4. 7. To check seasonal decline in the volume of sales. 3. To disseminate information through salesman. 6. 2. To prompt existing customers to buy more. ADVERTISEMENT Advertising is a paid form of publicity directed at a mass consumer. To meet competition from others effectively.Objectives 1. The purpose of advertisement is to inform the consumer. 5.. Now they are reducing the Tele Vision advertisement for the purpose of to give the product to the low cost.  And the Oil Pulling advertisement telecasting in the SUN TV. To increase the sales by publicity through the media which are complementary to press and poster advertising.  Idhayam advertise the products like the Jothika (Tamil Cinema Actress) acted in the Idhayam Sesame Oil. so as to ensure the product getting into satisfactory use by the ultimate consumer. Marketing Flow Chart MARKETING MANAGER ASSISTANT MANAGER JUNIOR MANAGER SENIOR ASSISTANT 34 | P a g e . To introduce new products. VIJAY TV and etc. To stimulate consumers to make purchases at the point of purchase. influence them and increase the sales. 8. dealers etc.

V & Sons Edible Oil Pvt Ltd the planning process is 1. OFFICER SENIOR OFFICER 2. And monitors all steps and process. Planning The planning means detailed plans to achieve the needs or demands. labours profile.V. summarising. and just forward to administrative process. The business functions of a finance department include planning. accounting for and controlling its company’s finances.Keep records for raw-materials. verifying. In V. etc. 3. and communicating financial information in the organisation. organising. measuring.5 FINANCE DEPARTMENT The part of an organisation that manages its money. 4. Accounting Accounting is a systematic process of identifying. recording. finished goods. Organising Arranging several components into order or structure. Identify the goals or objectives. Work for achieve the goals. Formulating strategies to achieve them. 35 | P a g e . 2. classifying.

Controlling Control money of the organisation. Methods for recording transactions. Resources available to the organisation (Man Power. 4.) 2. Accounting information provides. Raw Material and etc. Advising on taxations. 5. Report the financial information to the management. Performing Internal Audits. 3. Results achieved through their use. Reduces the various expenses of the organisation. Help to controlling the resources. 1. Keeping financial records. 3. To finance those resources. Finance Department Flow Chart FINANCE MANAGER JUNIOR OFFICER JUNIOR ASSISTANTS 36 | P a g e . 2. 1.

Here only the online transaction happens.V & Sons Edible Oil Pvt Ltd does no cash transaction.V. and payment of expenses are done through online. The company use the HDFC Bank for the online transactions. payment of buyers. Each and every transaction like salary to employees. payment to supplier. Bank Department Flow Chart BANK DEPT MANAGER JUNIOR MANAGER JUNIOR OFFICER SENIOR ASSITANT 37 | P a g e .Bank Department In V.

screening. External Recruitment If the organisation wants employees.2. phone no. Recruitment refers to the overall processes of attracting. father name. recruiting and training job applicants. Recruitment Recruitment is a core function of human resource management. selecting and appointing suitable candidates for jobs within the Organisation. Selection Process The selection process refers to the steps involved in choosing people who have the right qualifications to fill a current or future job. The form includes name.6 HUMAN RESOURCE DEPARTMENT Human Resources is the company department charged with finding. as well as administering employees – benefit program. address. Honey. caste. And the applicants must be submitting the two reference letter to the company. marital status and etc. King and etc. religion. Resume 38 | P a g e . Application Form The applicants must fill the application for applying job in the company. Dina Thanthi. they publish the advertisement in the newspapers like Dina Malar. Dina Karan and etc or they give the ad in the local television channels like Aakash.

They just want to know about applicants details. Disposal of Wastes and Effluents Everyday wastages and effluents are disposed as per Government policies. they will move to the permanent job in the company. The applicants must submit the resume about them. and the organisation will give the stipend salary for the training period. It requires the all the education and personal details of the applicants. If the HR is not satisfy about the training report they will be send out from the organisation. Human Resource Department Flow Chart HR MANAGER ASSISTANT MANAGER Facilities Cleanliness Cleanliness at an Organisation is very important. Interview The HR will interview the applicants. And the HR didn’t ask about the theoretical questions. Every day the factory and head office is cleaned by the sweepers. Jobfor Applicants After the training period. Training The applicants send to the factory or head office to the training period of six months. If the applicants training report satisfy the HR they will appoint for the suitable job. 39 | P a g e .

They are ramming company in night shift used in light. coffee and butter milk to the employees on minimum cost. Refreshment The Organisation provides tea. The Latrines are cleaned regularly by sweepers whose primary duty is to keep it and hygiene. Bonus The Organisation provides the Bonus to employees.75% the employer contribution is 4.75%.Drinking Water The mineral water is provided for the employees. Uniform The entire work force should wear the uniform on all the working days of the Organisation. Helmets for Engineering Workers 40 | P a g e . The PF contribution is both employer and employee at 12%. Lighting The lighting facilities are excellently provided by the organisations. Latrines and Urinals They are providing latrines and urinals for workers. This company having tube lights mercurylambs using these lighting system. PF The Organisation provides the Provident Fund. Employee State Insurance (ESI) The company give the ESI to the employees. And the employee contribution is 1. The one month salary is given to as bonus.

and etc. 2000/. Holiday 41 | P a g e .V. Because the company gives full facilities to their employees. Trade Union There is no need for the trade union in the V. Sponsoring a Child 800 9600 Tour Theemployee who works continuously for a period of 20 – 25 years the organisation sends the employees to Singapore.per month. Medical Allowance The company providing the medical allowance to the employees suffered with injuries within the organisation. The company provides the helmet for engineering workers as a measure of safety procedure.  The Organisations give the Scholar Ship to the school and college students.  Also provide the cash price to the sports person. Other Activities  The company takes the responsible of the Rotatory Club Meeting Arrangements.V & Sons Edible Oil Pvt Ltd. Tuition Fee 300 3600 3. School Fee 500 6000 2. Malaysia. The medical allowance is Rs. 1200/.to Rs. The contribution of employer: Monthly Donation For 12 months Purpose of Donation S. Education Fees The organisation provides education fees to the wards of the employees.No amount one child donation amount one sponsorship child sponsorship 1. Where complete expenses will be bear by the organisation.  And provide the cash price to district mark holders.

And the company declare holiday on Government holiday and local festival holiday. If any critical condition the employee can take more than one day with proper information. Leave Policy The leave policies are given below Sick Leave The employee can take one day for the sick leave. staffs. Disability Leave Eligible employees may receive short term disability leave up to one year. Compensatory Leave Employee may earn compensatory leave for approved time for completion of assignment. The workers. Facility Department Flow Chart FACILITY DEPT MANAGER JUNIOR OFFICER JUNIOR ASSISTANTS 42 | P a g e . Bonus Leave If the employee continuously worker for particular period without taking any leave the bonus leave will give for one day. securities have weekly one day holiday.

Thereport will be submitted to the Managing Director. Production Oriented Report. Analyse the Data. Discount to the Buyers. It helps find out the turnover. and Target to the Sales Person. The organisation minimum generates 30 different types of report. The most reports generate in the organisation are Sales Turnover. The main functions of MIS input for the output in the organisation.V & Sons Edible Oil Pvt Ltd. 43 | P a g e . Problems Faced in Implementation The bug fixing and system requirements are the main problems faced in the maintenance phase. The Water Fall model use for Information Technology in V. and Analysis of Purchase & Sales. Creation of DBA. The role of DBA is Structure of DBA.V. Each and every department gather the information from the report of MIS. Key Data.7 INFORMATION TECHNOLOGY DEPARTMENT An Information Technology is the department within a company that is monitoring and maintaining systems and services. The Various MIS reports are Sales Overall Turnover Calculation.2. The problems faced in the implementation phase Hardware Requirements. and Adaptation of User. Party wise turnover. and Maintaining DBA. Rectification of Data Loss and Backup & Restore the data. The generated report plays the role of Casting Report in Decision Making Process. The tasks performed through MIS are Product Price Fixing. Raw Data is helps to input parameters of MIS. Period Turnover. Software Requirements.

The employee doesn’t make any mistakes in the real software. Database Warehouse. Accuracy. shares the information within the organisation. Benefits The ERP used to 1. They use the software for share the information like accounts. optimum utilisation of resources and better decision making. The company using Internet. 2. sales details.Types of Database The five database use in the organisation. So it helps to develop their knowledge about the ERP. Time Management 3. 44 | P a g e . stock details and etc. Relational Database. 5. Intranet (LAN). End User Database. working hours. The ERP training program is Demo User to the employees. 3. Software Using in the Company The company use the software ICAND. Extranet (WAN) for communicating. Enterprise Resource Planning (ERP) The company implement an ERP system for systematic planning. purchase details. Operational Database. resources and equipment’s. Speed 5. Reducing Man Power 4. 4. Estimation of Cost of Software Project The cost of software project is estimate on the basis of man power. Casting 2. Distributed Database. 1.

Information Technology Flow Chart IT MANAGER OFFICER JUNIOR OFFICER 45 | P a g e .

If the chairman is not available in the country. CHAIRMAN SECRARIATE DEPARTMENT FLOW CHART CS MANAGER JUNIOR OFFICER SENIOR ASSISTANT ASSISTANT JUNIOR ASSITANT 46 | P a g e .8 CHAIRMAN SECRARIATE DEPARTMENT Chairman Secrariate Department means doing the work for instead of chairman. The department will manage the functions of the organisation. The Chairman Secrariate Department fix the appointment to meet the chairman. they will do work instead of the chairman.2. And the department reply the gmail to the buyer or seller mails guidance by the chairman.

V & Sons Edible Oil Pvt Ltd. My sincere thanks to allow me to the Summer Internship Project in their Organisation. CONCLUSION During the training period I have been given better support from the staff of V.The training period is extremely useful in another sense too that it’s a good opportunity of moving with employees of a company in a private sector. I learned how they producing the process of oil. I earn the knowledge from the company how to maintain the employees in the organisation. Then how purchasing the raw material from the better cost and better quality around India.Accumulation of the practical knowledge without practical experience is useless.V. 47 | P a g e .3. And how they maintain quality of the oil.I sincerely feel that working day enough to learn the practical aspects. How over the working day training was really useful to me.