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Report Submitted in Partial Fulfillment of Requirement for the

Two year Full Time

Master of Business Administration Program of

M.G. University, Kottayam

REG NO: 32758
Guided by
Mr. Tinku Joy
Assistant Professor.


2012 - 13

I, Mithun Babu, MBA student , Marian International Institute of Management,

Kuttikkanam, do hereby declare that this report entitled “ AN
partial fulfillment for the degree of Master of Business Administration, is a
record of bonafide work done by me under the guidance of Mr. Tinku,
Assistant Professor, MIIM, Kuttikkanam. I further declare that this report has
not previously formed the basis for the award of any titles of recognition.

Kuttikanam Mithun Babu


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First and foremost I obliged to the Almighty who showered upon us with the blessing and

gave me health and knowledge to complete this organization study successfully.

I take this opportunity to express my gratitude and indebtedness to the Director, Dr. P.V

Mathew, Marian International Institute of Management, Kuttikkanam. For providing

guidance, help and suggestions for the successful completion of this organization study.

My special acknowledgement and gratitude to Mr. Vinod Kurian, Plant Manager KSE

Limited, Vedagiri, Kottayam, for giving me an opportunity do my organization study in his


I also express my gratitude to my faculty guide Mr. Tinku Joy, Asst Prof. Faculty,

department of management studies, Marian International Institute of Management,


I also express my sincere thanks to my Organization guide Mr. V V Mathew, KSE Limited,

Vedagiri, Kottayam, for his help and support to complete this organization study.

Last, but not the least I would like to thank our friends who were a source of support and

encouragement for successful completion of the project.

Place : Kuttikanam Mithun babu

Date :

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This is an organization study about the KSE ltd. KSE stands for Kerala
Solvent Extraction ltd. Company deals with the production of cattle feed products. Solvent
extraction is usually used to recover a component from either a solid or liquid. The sample is
contacted with a solvent that will dissolve the solutes of interest. Solvent extraction is of
major commercial importance to the chemical and biochemical industries, as it is often the
most efficient method of separation of valuable products from complex feed stocks or
reaction products. Some extraction techniques in involve partition between two immiscible
liquids, others involve either continuous extractions or batch extractions. Because of
environmental concerns, many common liquid/liquid processes have been modified to either
utilize benign solvents, or move to more frugal processes such as solid phase extraction. The
solvent can be a vapour, supercritical fluid, or liquid, and the sample can be a gas, liquid or

The Indian feed industry is about 35 years old. It is mainly restricted to dairy
and poultry feed manufacturing; the beef and pork industry is almost non-existent. The
quality standards of Indian feeds are high and up to international levels. Raw materials for
feed are adequately available in India. The industry's production is about 3.0 million tons,
which represents only 5 percent of the total potential, and feed exports are not very high. The
feed industry has modern computerized plants and the latest equipment for analytical
procedures and least-cost ration formulation, and it employs the latest manufacturing
technology. In India, most research work on animal feeds is practical and focuses on the use
of by-products, the upgrading of ingredients and the enhancing of productivity.

The country has entered into a period of liberalization and this is bound to influence
the livestock industry. The per capita consumption of milk, eggs and broiler meat will grow.
The Indian feed industry is undergoing a very exciting phase of growth for the next decade.

The overall objective is to conduct a study on organizational structure of KSE Ltd. The
following are the specific objectives of the study.

 To examine the developments of KSE.

 To understand about the functional areas of the company.

 To understand the organization structure of KSE.

 To understand the product profile of KSE.

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With an increasing entry of new companies, information of newer technologies
and changing economies, the world of business is changing very rapidly. This organization
study in KSE Limited exposes to the practical side of the business enterprise. This study
helps to understand the history, structure, activity and the products of the company and its
contribution to the Indian cattle feed industry. This study exposes to various departments
namely purchase department, production department, stores department, etc.


Data required for the study is obtained through primary and secondary sources.

Primary data
Primary data is collected directly from the employees, department heads and the organization
study guide in the company. It is collected through observation and direct interview methods.

Secondary data
The secondary data is collected from journals, company files and annual reports, department
manuals and website of the company.


 As the study was conducted during a short period as a part of the course
curriculum, so a detailed study of all the functions in the organization could not
be completed within this period.
 The company’s authorities could not disclose matters relating to some
functional areas. Hence some areas could not be studied extensively.

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Growth in milk sector has occurred mainly through co-operative efforts. The
milk collection centers started through co-operative effort and collected milk from villagers
in quantities as small as liter and gradually started to provide other services to farmers,
including education, artificial insemination, veterinary health support and feeding. Small
farmers became prosperous, loan facilities were made available through banks, and member
farmers started to share the profits from co-operatives .Co-operative society also set up their
own computerized feed plant. They began to own modern computerized as well equipped
milk processing plants from which they produce and market pasteurized milk, butter oil,
chocolate, ice-cream from milk, sweets, which are very popular with Indian consumers.
Today the feed production capacity of the co-operative society is about 0.7million tones per

The solvent industry has achieved a phenomenal progress and at present there are
520 units having overall oil cake or oil seed processing capacity of more than 25.6 million
tons per year, which included rice bran processing capacity of more than 9.9 million per year.
The solvent extraction plays the important role in the oil economy. Solvent extraction in India
was started in 1945. It had to struggle for more than 20 years to establish it.


In the 1960’s there was a crisis in coconut oil extraction industry in Kerala.
After conversion from wooden ghani’s to rotaries the cost of the production had increased
considerably. By using this new method they were able to extract more oil from the coconut
cake. Earlier 20% of the oil was retained in the coconut cake, now it has reduced to
12%.Although Kerala produces 80% of copra produced in the country large part of it was
sold to other state as copra itself and they were earning good profit when mills in Kerala
wasn’t able to get enough copra for their daily needs. When oil industry in other parts of the
country was thriving in Kerala it was struggling. So they understood the need for
modernization of their mills. At that time Dr. P. S. Lokanathan committee set up to study the
feasibility of starting new industries in Kerala, recommended of establishment of 3solvent
plants in Kerala and it was also proposed that one should be located in Thrissur itself.

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Lion share of copra went to mills in Bombay and they were able to
generate good profits. To overcome the situation a co-operative society formed by
name Coconut Oil Miller’s Co-operative Society and it was decided that this society would
act as an agent of state trading corporation for distribution of copra. By seeing the
performance of the Bombay group an investigation department was assigned to
investigate it. Then they found out that they were using expeller mills
for extracting oil and was able to reduce the oil content up to 6%. The industries
in Kerala later began to follow it.


From the beginning KSE Ltd marketed the buy product obtained from its
solvent extraction division in the brand name of Jersey Copra Cake. Most of the
progress in the cattle feed sector has come about in the past 30 years only. There are only
few cattle feed units in the country especially in Kerala. The cattle industry of the state has
been utilizing the indigenous raw material i.e. coconut cake, which is the residue left after the
extraction of oil from copra which is mainly used as cattle feed. Coconut cake contains four
to five per cent oil is generally used for industrial purpose and deoiled cakes is used to make
mixed cattle feed.

In Kerala the rotary cake was used as a cattle feed and actually this excessive
oil on cakes reduced the keeping quality of the cake and also upset the digestive
system of the cattle e. In foreign countries, the cattle is feed only with de-oiled cakes and
according t o t h e d a i r y e x p e r t s , t h e m i l k a n d f a c t c o n t e n d o f m i l k d e p e n d s
s o l e l y o n t h e p r o t e i n contend of the feed. All these factors stress the
importance of having a few cattle field industry in the state.

Thus in 1996, KSE Ltd. Entered the cattle field industry by setting up the new
plant for manufacturing ready mixed cattle feed. During the last three decades KSE has been
acting as a leader in ready mixed cattle feed industry of the country. Today, KSE Limited
commands the resources, manufacture a range of livestock feed in high volumes, driven by
the commitment to high standards of quality.

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Most of the progress in the dairy sector has come about in the past 25 years only.
Till 1970, the country’s milk production increased merely by one per cent a year.
But after the intensification of cattle improvement programme through artificial
insemination, using sasses of exotic breeds and launch of operation flood, the production
started rising rapidly from the mid 1970’s.

The transformation of India from a milk deficit to a milk

s u r p l u s c o u n t r y i s essentially the result of an intensive campaign launch by the Govt.
and semi Govt. bodies to promote animal husbandry as a means of generating income for
the landless poor.

Many of these producers have organized themselves into co-operative

under the umbrella if the National Dairy Development Board (NDDB) which had
been running a highly successful animal husbandry promotion programme named
Operation Flood.

The private sector has now entered into this field in a big way, capitalizing on the
availability of cheap surplus milk to produce various kinds of dairy products for
the domestic and international market. Several dairy products like skimmed milk
powder, whole milk powder, and infant milk foods of western origin are now
being produced in India. A variety of cheeses, milk drinks, ice creams,
pasteurized butter etc. which, were very common in this country till a few
decades ago are now available in abundance in department stores of big and small

The main objective of this programme is to build a viable and self-

sustaining national dairy industry capable of meeting the domestic demand for fresh liquid
milk and milk products and competing in the international markets.


At the beginning of the twenty-first century, India has a population of 1 billion
people. Although the annual growth rate has slowed from 2 to 1.8 percent, the base is so
broad that changes in population dynamics are not perceptible. The population may stabilize
by sometime between 2030 and 2040 if all sections of society support family planning
wholeheartedly. The purchasing power of the middle class is growing (the middle class
accounts for approximately 300 million people) and food habits are also changing.

The Indian economy is growing at the rate of 6 to 8 percent per annum. The
livestock industry in India is the second largest contributor to gross domestic product (GDP),
after agriculture, and accounts for 9 percent of the total. Consumption is likely to increase as
follows: per capita milk from 240 to 450 g per year; per capita eggs from 40 to 100 per year;
and per capita broiler meat from 1 000 to 2 000 g per year.

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A major change is occurring in India on the economic front. The country has
adopted a model that lies midway between liberal and public sector production, but growth
has been affected by the poor performance of most of the public sector units, rising
government costs and fiscal deficit, and the economy has suffered. A process of liberalization
was set in motion by the government and has been implemented for the last eight to ten years.
This has caused India to open up and invite investment from multinationals, liberalize
imports, reduce government expenditure and remove public sector businesses. It also means
that the days of nationalization, unnecessary government controls and restrictions will soon
be over thanks to progress in the country's economy.

India has entered into an agreement with its trade partners under the World
Trade Organization (WTO). The changes brought about by the liberalization process will be
slow but certain. The government is opening up imports in a phased manner, and it is
expected that this process will be completed by April 2003. In the meantime, about 930
items, including agricultural products, will be open for import under open general license
from April 2001, making it possible to import dressed chicken, milk and milk products.

Various livestock industry associations have taken issue with such imports in an
attempt to protect their members. If the livestock industry is affected, the feed industry will
also be affected. The Government of India has raised the tariff on all poultry and poultry
products from 35 percent to the WTO boundary level of 100 percent. It therefore appears that
there will be a level playing field.

In view of the expected rise in per capita consumption of chicken meat, eggs
and milk, livestock production and productivity will grow. The dairy industry, which is
cooperative-based, is growing with the increased capacities of milk processing units. The
population of cross-bred cattle and buffaloes is also growing. Milk is very popular in India.
The poultry industry is developing towards vertical integration and a few multinational
companies have already entered the Indian poultry business. Although the live bird market
currently accounts for about 90 percent of the total market, it is expected that the
consumption of dressed chicken will grow in the next five years, from the existing 10 percent
to 25 percent or more. This would mean establishing very hygienic and scientific processing
units. Cold chains, branded chicken, chicken cuts, etc. will be introduced and, depending on
the success and consistent quality, consumer preference for dressed meat will grow.

The next decade will see significant changes in restructuring, mergers,

acquisitions, amalgamations, joint ventures, diversification, integration and efficient service
chains, e-commerce and use of the latest information technology in global tenders, trading,
export/import and other commercial activities. At the root of all these developments will be
the scientific development of feed manufacturing technology. The Indian feed industry will
increasingly use biotechnology, more scientific formulations, new molecules and natural and
herbal products to improve animal productivity. Indian agriculture will also use
biotechnology and genetically modified organisms (GMOs) to support the feed industry,
which is entering a very exciting phase of growth for the next decade

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Kerala Solvent Extractions Limited now known as KSE Limited was
established in 1963 by a handful of coconut millers in and around Irinjalakuda with a vision
to overcome the crisis of the coconut oil industry. Initially started as a solvent extraction
plant, the company now produces 750 to 850 MTs of coconut cake a day with four cattle feed
production units two solvent extraction plants. The company has diversified into the area of
dairying by establishing two diary plants for the production of pasteurized milk and milk
products. It has obtained ISO recognition for its commitment to quality and professionalism.


It was in 1963 that Kerala Solvent Extraction Limited, now known as KSE
Limited, entered the solvent extraction industry setting up the very first solvent extraction
plant in Kerala. The solvent extraction plant went on stream in 1972 and in 1976, a new plant
was set up to manufacture ready mixed cattle feed.

The last three decades have seen KSE emerging as a leader in solvent extraction and
ready mixed cattle feed in the country. Today KSE commands the resources, expertise and
infrastructure arrange of livestock feed in high volumes, coconut oil from coconut cake and
refined edible oil.

Driven by a commitment to high standards of quality, KSE has not only won
customer’s confidence but also national recognition through several awards and accolades.
With modern manufacturing facilities spread over three states, KSE caters vast beet
stretching across southern India and enjoys a significant presence in exports too. Since the
early days, KSE has endeavored to supply products to customers through an extensive
network of dealers and retailers, which form a dedicated force behind the success of KSE. It
is a matter of pride that KSE is a house hold today.

With a strong commitment to customers and product quality and being cost
competitive, KSE stands poised to meet new challenges. The copra crushing industry has
been in existence in Kerala for decades and has been the most important basic industry in
state utilizing the indigenous raw materials viz., coconut. During the 60’s the oil millers in
Kerala used wooden village Ghani’s operated by bullocks which left about 80 per cent oil in
the cake. Later iron rotaries driven by electricity were used but they left about 12 to 13 per
cent oil in the cake.

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But in other part of the world including other states in India, giant expellers came
up following by the solvent extraction plants. Thus oil millers outside Kerala obtained an
extra amount of oil by crushing copra subsequently processing the cake through solvent
extraction plants. This new technology enabled the millers outside Kerala to take away a
large portion of the copra from our state, starving our local industry. We could not keep the
pace with the time due to the lack of capital and had to face tough competition from other

In 1960, a committee was appointed under the chairmanship of Dr.

Loganathan to study the feasibility of starting new industries in Kerala. Based on the techno-
economic survey conducted, the committee recommended for the establishment of the three
solvent extraction plants in Kerala and one of them in Thrissur district.

The oil mill owners in and around Irinjalakuda who were also thinking in
similar lines and saw the opportunity and look the initiative to establish a solvent extraction
unit and for this purpose they brought 9.6 acres of land in the name of Sri. K V Devassi and
Sri. K L Francis and also applied for the industrial undertaking license.

They decided to start it as a public limited company, issuing shares to almost all
the oil millers who were interested. For this purpose on 1st May 1963, a meeting was held
which was presided over by Sri. K V Devassi and attended 17 members. Sri. K V Devassi
was elected as the chairman and 10 others were elected as Directors. The Directors were Sri.
K L Frncis, Sri T O Paul, Sri. N P Venkittarama Ayyer, Sri. M S Menon, Sri. A P George,
Sri. E T Joseph, Sri. P L Ouseph, Sri. M C Paul, Sri. M P Kochudevassi, Sri. A Narayan

On 25th September 1963, the Kerala Solvent Extractions got certificate of

incorporation (No.2028) from the Registrar of Companies, Kerala. The first formed meeting
was held on 20th October 1963 and in this meeting, Sri. K V Devassi was elected as the
chairman and Sri. K L Frnacis as the Managing Director.

The initial capital of the company was Rs.4,17,500 consisting of 4175 shares of
Rs.100 each subscribed by the promoters. The initial capacity of the plant was 40 tons per
day. There were 23 staffs and 28 workers initially.

On the road to success there were many hurdles in the beginning. Mobilization
of capital caused the greatest challenge. But determination and optimism paid of. The solvent
extraction plant was on stream in 1972 and in 1976 a new plant was set up at Irinjalakuda to
manufacture ready mixed cattle feed, which was a pioneering step. Thus the KSE Limited
had given Irinjalakuda an important place in the industrial map of Kerala and showed us how
to convert a waste material into national income.

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The pioneering plant of KSE at Irinjalakuda is unique in many ways. It was the
first solvent extraction plant in Kerala. It was the first major factory in the locality spread
over 15 acres. It was hear that KSE set up its first cattle feed plant. The plant embodied the
spirit of the enterprise of a group of committed people, who wanted to usher in an era of
modernity into a traditional society and change the industrial landscape of the state.
Naturally, today the Irinjalakuda plant enjoys of flagship states and commands an edge on
infrastructural strength. Taking great strides technological development, the process of
computerization in plant and office was initiated way back in 1987. Micro processers have
been in using in the production line since 1989.

Research and development plays an important part in the activities of the KSE,
central R & D unit is located here. The plant houses a modern laboratory. The quality control
cell here leads and guides other units and formulates stringent standards. The chief
Nutritionist and Assistant Manager of quality control are also based here.

A proud symbol of growth, the Irinjalakuda unit is an inspiring force for the entire
KSE family. In 2007, company decided to install 500 TPD cattle feed production in the unit.
This unit acquired ISO 9001 – 2000 accreditation.

Sale of KS cattle feed in selected markets in Tamil Nadu was started as early as
1984. To enable the company to extend its products and services to whole of Tamil Nadu, a
new production unit was set up at Swaminathapuram in Dindigul district of Tamil Nadu. A
solvent extraction plant was started the very next year. Spread out on 22 acres of land on the
banks of river Amaravathi, this Rs.3.5 crores plant works round the clock. Keyes Forte is also
manufactured in this unit. A model Diary farm with high yielding animals is also maintained
in the unit for conducting feeding trials and other experiments.

The third cattle feed plant of the company with a daily production capacity of
240 MTs started operation at Vedagiri in Kottayam district, in March 1996. This Rs.6 crores
project, fully financed from internal resources, was formally inaugurated on 17th August,
1996. This unit is built on a spacious area of 10 acres. Utilizing highly advanced
technological features, this unit marks a new chapter in the cattle feed manufacture.

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In 1195, the company explored the possibility of refining solvent extracted oil and
marketing it in various states in India, the company commissioned a vegetable oil refining
plant in December 1995, with a capital investment of Rs.1 crore, wholly raised from internal
accruals. The company also refines sunflower expeller oil and markets it in the name KSE

A recent addition to the KSE family is the livestock feed plant at Palakkad. With a
manufacturing capacity of 120 TPD, this plant caters predominantly to the needs of the
northern districts of Kerala such as Palakkad, Malappuram and part of Calicut.

Company acquired land from Kinfra Small Industries Park, Koratty, Thrissur
district and installed 200 TPD Solvent Extraction Plant and 100 TPD Physical Refining Plant
with a capital outlay for refining vegetable oil. Solvent extracted coconut oil is refined in the
plant and made edible. Commissioned Fraction Plant in March 2009.

We shall endeavor to maintain leadership through quality products, explore new
avenues in product development and marketing, create a stronger bond between the
management, work force, dealers and customers, contribute to social development and rural
upliftment, and constantly strive for excellence in all spheres of our activities.

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To provide maximum benefit to the dealers and to give good quality products to
the customers at a fair profit. To increase the turnover and to widen their markets to all the
zones etc.

The Memorandum of Association of the company lists out altogether 38 broader objectives.
Out of these, the important objectives for which the company is established as follows:

1. To produce, manufacture, extract purchase refined, prepare, import, export, sell and
generally to deal in oil form seeds, oil cakes and other oil bearing materials. To carry
on business of the refining and hydrogenation of oil and the manufacturing of by-
products share from and of trades connected there with.
2. To acquire correct, construct, establish, operate and maintain oil mills, extraction
plants, ghee plants, workshops other works.
3. To purchase for the purpose of the business of the company, oil neutralizing, in
washing, tying, bleaching, filtration and hydrogen plant, boilers, tanks, engines,
electric motor shafting tin plates punch machines and other machines.
4. To plant, cultivate and purchase all kinds of food stuffs, oil seeds, vegetable and other
produce of land and to sell and deal in them.
5. To make, manufacture and prepare mixtures and fertilizers to install and run bone
mills and to buy, sell or trade in trade in any fertilizers and manures of kind.

 To achieve a minimum compound growth rates on sales turnover.
 To promote sales turnover.
 To provide for the optimum use of technological innovation.
 To enhance productivity.

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Board of KSE Limited consists of ten Directors out of which the Chairman and
Managing Director is the Chief Executive Officer of the company. Moreover there is one
executive director who is looking after the daily transactions of the company. The Board
invariably meets in every month and evaluates the performance of the company. All major
policy and business decisions are taken after due deliberations and with mutual consensus. A
management committee with five directors as its members is functioning to assists the Board,
which is regularly meeting, twice in a month, in order to review the company and proposals
that are to be placed before the Board and mark recommendations there on.


 1972 : The company started production in Irinjalakuda with a Solvent Extraction
with a capacity of 40 MTs per day.

 1976 : A new plant was set up in Irinjalakuda to produce 50 MTs of ready-mixed


 1979 : Production capacity of Cattle feed Plant in Irinjalakuda increased to 60 MTs


 1980 : Solvent Extraction Plant capacity in Irinjalakuda increased to 60 MTs per


 1984 : The Solvent Extraction Plant capacity of Irinjalakuda increased to 80 MTs


 1987 : Cattle feed Plant at Irinjalakuda capacity increased to 180 MTs per day.

 1988 : Cattle feed plant in Swaminathapuram, Tamil Nadu started production

100 MTs per day.

 1989 : Solvent Extraction Plant of Swaminathapuram unit with a capacity of 120

per day started production.

 1990 : Cattle feed production capacity at Swaminathapuram unit increased to 150


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per day.

 1991 : Palakkad Branch started.

 1994 : Keyes Forte, the new feed supplement for cattle introduced.
Cattle feed production capacity at Swaminathapuram increased to 180 MTs

 1995 : Calicut Branch opened.

 1996 : 240 TPD cattle feed Plant at Vedagiri in Kottayam District started operation.
Company renamed as KSE Limited. (Formerly Kerala Solvent Extractions

 1998 : Company acquired its fourth manufacturing unit at Palakkad for

Cattle feed.


Completed at Irinjalakuda for the benefit of the Public. Company introduced
“K.S. Deluxe Plus" the Pelleted feed in HDPE bags for Kerala Market.

 2000 : Company started production and marketing of Pasteurized Milk and Milk
products from Konikkara Dairy, Trichur District,Kerala and Thalayuthu
Palani Taluk, Tamil Nadu.

 2002 : Cattle feed production at Irinjalakuda unit increased to 195 MTs per day.
'VESTA' Ice Cream launched.

 2003 : Started production of Cattle feed in a leased plant at Edayar, Kalamassery.

Cattle feed production at the Swaminathapuram unit increased to 195 MTs
per day.

 2004 : Acquired Land from KINFRA for starting the new project of 200 TPD
Solvent Plant and 100 TPD Oil Physical Refining Plant at Kinfra Park,
ISO 9001:2008 Accreditation for Irinjalakuda.

 2005 : Cattle feed Production capacity at the Irinjalakuda unit increased to 210 MTs
Company acquired property at Mysore.
ISO 9001:2008 accreditation for Vedagiri and Swaminathapuram units.

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 2006 : The 200 TPD Solvent Extraction Plant at Koratty commissioned.
100 TPD Physical Refining Plant at Koratty commissioned.
Solvent Plant at Irinjalakuda dismantled.

 2008 : Ice cream production unit commissioned at Thalayuthu.

 2009 : Cattle Feed production capacity at Swaminathapuram increased to 200 MTs

Commissioned Fractionation Plant at Koratty.
Commenced 500 TPD Fully State-of-the-Art German Technology Animal
Feed Plant at Irinjalakuda.

 2010 : Ice cream production unit at Vedagiri commissioned.



P.B.NO.20, IRINJALAKUDA -680121,

PH: 0480 2825476/2826676,

FAX: 0480 2825244





PH: 0481 2536829/2538718/2538719,

FAX: 0481 2536830

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PH: 0491 2536332/2538451/2531858




THRISSUR – 680320,

PH: 0487 2356394/2351501/2358806




KORATTY – 680306





PH: 0495 2370056/2900194

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PH: 04252 252560/252561/252562/252563,

FAX: 04252 252565




PH: 04252 252860/252867

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KS : One of the all-time favorites in the cattle feed.

K S Super : A special cattle feed that has won immense popularity.

K S Deluxe Pellets : The choice of caring farmers for better results.

K S Supreme Pellets : A bypass protein feed with ISI marks. Specially made for

with superior germ plasma and high production potential.

Jersey : Protection rich, tasty, de-oiled coconut cake.

Keyes Forte : Keyes Forte is a feed supplement for cattle. It contains

Vitamin A, D3, E and all. The required trace minerals at

recommended quantities.

K S Supreme : Refined sunflower expeller oil. Solvent extracted coconut


Refined solvent extracted coconut oil.


K S Milk

K S Ghee

K S Curd

Butter Milk

Vesta Ice Cream

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 Kerala‘s first solvent extractions plant.

 No.1 in processing coconut oil cake though solvent extraction in India.

 Winner of S.E.A. national award and state productivity and safety.

 Front-ranker in mixed cattle feed production in India.

 Recognition from Annual Nutrition Society for contribution in cattle feed


 Kerala’s first export mixed cattle feed.

 The name trusted by millions of people.


1. “Best Productivity Performance for cattle feed in India” award from National
Productivity Council continuously for eleven years 1996-97 to 2006-07.

2. The Solvent Extractors Association of India – ‘S.E.A Award’ for highest processor of
coconut cake in India continuously for 19 years including 2008-09.

3. Kerala State Productivity Council Award.

4. “Top Cattle feed Award” for aflatoxin free feed from the Indian Association of
Veterinary Pathologists (IAVP) and Kerala Agricultural University.

5. Tamil Nadu Productivity Council Safety Award.

6. Animal Nutrition Society of India award for Company’s contributions for propagation
of balanced compound livestock feed in India.

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7. Industry Excellence Award from the Indian Society for the Study of Animal
Reproduction for the year 2001.

KSE Ltd is in the forefront for meeting its responsibility towards the society.
KSE has contributed liberally towards the social events.

1. Construction and maintenance of a modem children’s information centre “KS PARK”

in irinjalakkuda at the cost of Rs 80 lakhs.
2. Construction of footpath cum handrail for public at cost of Rs 10 lakhs.
3. Contribution of Kargil Fund Rs 5 lakhs.
4. Contribution to Gujarat earthquake relief fund Rs 10 lakhs.
5. Contribution to Bharatia Vidya Bhavan in Irinjalakkuda Rs 1 lakhs.
6. Contribution to St. James Hospital Rs 3 lakhs.
7. To Amala cancer centre – hospital and Research Centre Trissur Rs 3 lakhs.
8. The Chief Minister relief fund Rs3 lakhs.
9. Mahatma Gandhi
10. For construction of class rooms of Unnai Warier Smarakalanilaya Rs20000
11. To St Joseph Collage for women Rs 80000
12. For construction of blood bank attached to the Government Taluk Hospital Rs 25000

The company has 926 employees in its roll on 31.3.2011. the
company is an expectation to the advise labor conditions existing in Kerala. During its
working of 39 years, the company had lost few man-days by labor unrest. However, during
the year under review, the Vedagiri unit was under lock out from 30.09.2010- 14.02.2011.
Section of the employees of that unit resorted to slowing down of production to pass their
demand for an interim hike in their remuneration during the validity field of settlement and
management was forced to declare the lock out. After several round of negotiation, the
management arrived at a settlement with the employees on their agreeing to drop their
demands and the lock out was lifted. During the lockout period management had made
alternate arrangements to ensure regular supply to the dealers and the performance of the
company had in no way affected. There were no labor issues of serious nature in any other
unit of the company. The management continues to maintain cordial industrial relation with
its employees in all Units and is attending to their grievances with an open mind.

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Commitment in Rural Development
KSE has taken up rural development as a major corporate task and responsibility.
The agrarian rural society is the back born of the nation’s economic structure and KSE has
always been active in supporting and promoting images in their vacation.

Today Kerala and Tamil Nadu comparison the largest market of KSE cattle feed.
The majority of their deposal over 600 KSE dealers ensure that the KS Range of cattle feed is
available to them at a lower price suggested and enforced but the company KSE has made
arrangements for the supply of cattle fed in villagers directly from dealers and through
retailers .

Besides beginning range of trusted products to the villages KSE also imparts
valuable advice and instruction regarding animal has boundary and cattle to the villagers.

Progressive Management and Unique Work Culture

The management KSE rests on a eminent team of personalized from the cultural
and financial and social system of society who from the BOD. The Chairman and MD
executive director and whole time Director head the operations of the company and overseas
its smooth functioning. The day to day management of various units is carried out by
experienced professionals under a chief general manager. Who lead and motivate a dedicated
world force.

The total number of employees in various units of KSE now exceeds 1000.
Besides KSE gives endured employment to over 2000 people, through its distribution
network across Kerala and Tamil Nadu.

The work culture of KSE is an exception to the rule in the strife ridden
industrial climate of Kerala. During the quarter century of it is operation, the days lost to
industrial unrest is only 23 days. This fact illustrates the cordial work environment and
speaks of the extra ordinary relationship between the management and employees.

Periodic appraisal and renewal of agreements between the management and

workers credit a responsible attitude and productive atmosphere. The united efforts mutual
test and progressive vision of management and force is the cornerstone on which the success
of KSE is based.

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Human resource is of paramount importance for the success of any
organization. It is a source of strength, aid and, it is the most important asset of an
organization. Human resources are the wealth of an organization which can help it in
achieving its goals. Human resource management is the planning, organizing, directing and
controlling of procurement ,development, compensation, integration, maintenance and
reproduction of human resources to the end of the individual, organizational and societal
objectives are accomplished.

Human resource management is the qualitative improvement of human

beings who are considered the most valuable assets of an organization. It is the strategic
approach to the acquisition, motivation, development and management of the
organization’s human resources. The primary objective of HRM is to ensure the satisfactory
accomplishment of the objectives of an organization and of its employees and management.
It helps workers in accomplishing individual and organizational goals.

The HR manager organizes the HR department to carry out the functions

entrusted to him. In KSE personnel department functions are controlled by Personnel

Department Structure




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Functions of Human Resource Department

1. Recruitment
Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organization. This is made on the base of personal
interview. Only qualified candidates are selected. Final selection is done by the head office.

2. Pay Fixation
It is based on the job analysis, conduct of salary survey, group similar jobs into pay
grades, price each pay grade and wage administration rules.

3. Promotion
Advancement within an organization is ordinarily labeled as promotion. It
refers to the advancement on an employee to a better job. Promotion is a mean of filling up
vacancies which occur in any organization from time to time. Promotion is given on the
basis of:

 Seniority
 Performance
 Additional Qualification

There is an understanding between the workers and the management that

promotions will be made on the basis of ability and seniority.

4. Welfare
Labour welfare means anything done for the comfort and improvement
intellectual or social, of the employees over and above the wages paid which is not
necessary for the industry. KSE gives first priority to the welfare of the employees. Statutory
and non-statutory benefits are provided.

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5. Performance Appraisal
Performance appraisal is the systematic, periodic and an impartial rating of an
employee, excellence in matters pertaining to his present job and his potential for a better
job. It is done to ensure the efficiency of workers.

6. Statutory Requirement

 Factory license and boiler license renewed every year.

 Punchayathu tax and building tax, company tax, individual employee tax, etc. are
 Diesel license and environmentally acceptable licenses are renewed every two years.

Labour welfare activities of KSE Ltd ensure a peaceful and friendly atmosphere in
the workplace. Labour welfare is a matter of first priority to the management. The firm
provides sanitation, periodical medical checkup and recreational facilities to the employees
.Firm provides both statutory and non-statutory benefit.

Statutory Benefits

 ESI and per ESI Act 1948.

 Gratuity as per payment of gratuity Act 1972.

 Employees Deposit Linked Insurance.

 Contribution to Kerala Labour Welfare Fund.

 P.F

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Non Statutory Welfare Fund

 Employee Welfare Fund

All employees of the firm contribute a fixed monthly amount to the fund. The fund

administrated by a committee nominated by the management and the employees.

 Terminal Fund
 Death Fund
 Disablement fund
 Medical benefit
 Cash award for children
 Loan for marriage of children
 Loan for house hold items.

 Annual Gift

Firm give annual gift to all employees. Same amount is given to all from the General
Manager to

Lowest paid workers.

 Uniform and Footwear

Firm provides two sets of uniform to the workers. Technical staff is also provided two sets of

uniform and pair of shoes.

 Ex-Gratia Payment

One month salary is granted as Exgratia in connection with marriage of employees


if an employee dies in service.

 Leave and Travel Allowance

It is given every year.

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 Conveyance allowance

It is allowed to all permanent employees based on category in which they work.

 Shift Allowance

The second and third shift employees are provided with shift allowance .

 Washing Allowance

It is provided to all employees with uniforms.

 Group Insurance

It is introduced recently in the firm. All employees are provided with group
insurance of


 Leave Allowance

13 days declared as holiday in a year.

Trade Unions





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Department Structure




The purchase department consists of purchase committee, which in turn is

comprised of management officials. Purchases are normally done from reliable suppliers.

1. Purchase Requisition: It is a document through which the user department requests the
purchase manager to arrange for purchasing the material required. Each department
head prepares the purchase requisition and send it to the purchase manger on receipt
of purchase requisition report. The purchase manager will make necessary steps for
purchasing material that has been mentioned in the purchase requisition.

2. Plans are made by the purchase department about what to purchase, how to purchase,
when to purchase and so on.

3. Purchase manager does not invite quotation for the supply of materials from different
suppliers. Orders are placed through telephonic orders. Normally the orders are made
in bulk quantity. Maximum Economic Ordering Quantity is 250 tons per order.

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4. The purchase committee selects the supplier after evaluation. The purchase manager
then discuss with the supplier about rate, quality, requirements, quantity, delivery
time and packaging. Then both parties agree that they will enter in to purchase
contract according to supply and payment.

5. Making of purchase contract: Six copies of the purchase contract will be prepared and
it is signed by Chief Purchase Manager and Chief General/Finance Manager. The
company will send two copies of purchase contract to the supplier, one copy to the
purchase department, one copy to the finance department, one copy to the stores
department and the last one will keep it in their running file. The supplier will send
back one copy as a token of confirmation. A purchase contract will contain the details
such as, the name of the material, quantity to be supplied, agreed rate, quality
specification, time in which it is to be supplied (delivery date), place of delivery, rate
whether inclusive of tax, packing of material, mode of transportation, option if the
material is not supplied on due date and mode of payment. Generally, 90 per cent of
the payment will be made in the next day. In case the delivery is not made on due
date, this 10 per cent will be adjusted.

6. Receiving and inspection of material: When the material arrives, the drivers have to
report at the gate. The guards will inform it to the purchase department who will give
permission to enter into the company.

Before taking the material to the godown, the total weight of the truck containing
the materials will be calculated. This weight involves the weights of truck, materials, and
packing of material. Later after unloading of material, the weight of the truck, gross weight
(actual weight of material and its packing) and net weight (weight of materials only) will also
be calculated. At the time of unloading the material, actual samples of it will be taken and
send to the Lab another packet will be kept a check sample.

The Material Received Report (MRR) will be prepared and send it to the
purchase department. Full payment for the materials received will be given only after getting
the lab results. The rebate will be deducted if there is any non-fulfillment of the conditions of
the contract. If there is any dispute regarding the quality of the material, the company will
send half of the check samples to the supplier who will send the second half of the check
sample to an independent lab for re-test. Nearest result’s average will be taken for settlement.

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The most needed material is de-oiled rice barn, which is purchased in bulk
from north India by rake load and also by lorry from Tamil Nadu and to a concerned extends
from Kerala. Molasses is vital ingredient as it adds taste to the cattle feed.

Materials purchased are required to be delivered at the Vedagiri unit.
Specifications of the materials required are communicated to the supplier who supplies the
materials as per specifications. The load of materials entering the factory will be registered at
the factory gate. The load is then sending to the store where the store officials check the
materials for visual defects through sample test.

Once the store officials verified the load, it will be unloaded and each material
will be stocked separately in its lot and stored in a pattern. Then raw material samples will
send to the company late for content analysis. If the quality of the materials is found
inappropriate, then adjustments in the price will be made in the final settlement.

Maximum storage capacity of the store is 7500 tons. The company maintains a
minimum stock level of 15 days a minimum of one and a half months.

Once the material requisition report is made, the material is accepted and receipt
is forwarded to the accounts department. The load number is specified in the MRR. Factory
item is stored as per specified act and each issue is recorded. Issue of material is done L.I.F.O
basis. Hence stock can be verified easily whenever required.

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Forms used in the purchase department are ;


This contains information regarding the name of the dealer, order
number, date, name of the material, quantity required and rate. It also contains
specific information regarding quality duties, packaging, and mode of delivery, place
of delivery, delivery rate and payment schedule. Chief purchase manager of general
manager will sign this report. Copies of this document are prepared too are send to
the supplier out of which one will be send back by the supplier as confirmation, on
copy is send to finance department, one to godown, one is kept in the running file.


This contains details about the materials received, date, supplier
name, number of bags, voucher number, quality, freight, etc. This form should be
signed by the authorized signatory. Three copies of this form need to produce. One
will send to godown, two copies are retained by the purchase department.

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Department Structure





Production is the process of conversion of inputs into outputs. It involves

certain heavy machineries and some complicated process to convert raw materials into
finished products. Cattle feed production is based on the formula given by the nutritionist.
The formula will change according to the availability and the price of raw materials. The
important raw materials used for this purpose are coconut oil cake, cotton seed cake, maize,
rice, wheat bran, etc. and nutrients.

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Raw Material Feeding

Raw Material Weighing

Batch Grinding

Batch Mixing

Molasses Mixing



Quality Check


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1. Raw Material feeding : Various raw materials to be taken for production are listed in
the raw material feeding report on a day to day basis and fed to the conveyors. The
materials fed are taken to the top floor through the coveyor.

2. Raw Material Weighing : The raw material is weighted in the weigh hopper as per
the formulate given by the Chief Nutritionist. For each recipe, separate formulae are
entered in the computer.

3. Batch Grinding : The batch which is weighed in the weigh hopper is taken for
grinding in hammer mills, where required sleeves are used to ensure adequate particle
size for the ground material.

4. Batch Mixing : The material ground in the hammer mill is taken to the ribbon type
batch mixer for predetermined time to ensure homogeneous mixing. The minor
ingredients are directly added to the mixer.

5. Molasses Mixing : The required molasses added to the batch and mixed in molasses

6. Palletizing : The food that is mixed with the molasses is passed through the pellet
mill feeder conditioner where required quantity of steam is added. It is then passed
through the pellet mill where pellet are produced. The hot pellets are cooled in cooler
and then bagged.

7. Bagging : After completion of production, bagging is done and appropriate

identification is done with respect to the date and shift of production.

The whole operation is automatic which is programmed to the computer placed at
the plant operator’s room. After feeding of raw materials to the hopper, the computer
automatically takes the amount of raw material needed for the batch as per the chief
nutritionist formulae. The bagging is also done automatically. The plant operator is
responsible for the change in the percentage of raw material in the batch. The raw materials
are fed to hopper which itself is a weighing machine. It allows only the appropriate amount of
raw material to enter the production.

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In KSE Vedagiri unit, production take place in the cattle feed plant.


In this plant the company uses different types of cakes according to their availability
apart from other materials of the company such as coconut cake, sunflower cake, mustard
cake, soya been, wheat, calcium, vitamins, cotton seed, phosphate, tapioca, maize, jowar and
other vitamins. Except from the coconut cake, all the other materials are purchased from
other states. It can produce 200 tons per day.

It involves mixing, milling, cooking and pelleting.

This is being used for ensuring that all the granules are grinded, screened three mm
sieve. The materials feed in to the grinder and powdered as it passes. Through the screen
provided at the bottom side of grinding chamber. Two hammer mills are used.

The raw material will mixed thoroughly by using a horizontal mixer.

The steam for cooking is produced using a boiler. The mixer carries out a strong
mixing while the mash is moved forward and added with dry saturated steam. The cooking is
carried out at a temperature of 80 degree Celsius using a high pressure saturated steam.

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The pellet mill die by rotating drags the mixture of mash and steam towards the roller,
which press it and consequently compel it to pass through the hole of the die. It increases the
density of the mixture, which together with heat generated by the saturated steam facilities
the extraction of the pellet.

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Department Structure





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Marketing Department of the company concentrates on building long term
relationship with the customers, dealers, distributors and suppliers. The company also
undertakes sales promotion works. Marketing department mainly concentrate on consumer
promotion and dealers promotion.

In this company the departments by Marketing Manager and under him there are 2
Assistant Manager. One for sales Dispatch other for Customer service and Sales promotion.
The company sells its products only through the dealers, No direct sales are allowed. The
company has around 500 dealers. It delivers goods at their shop unloading changes; rent etc
will not bear by the company.

Advertisement and sales promotion

The company does not give much importance to advertisement but it concentrate on
sales promotion to a greater extends. However the advertising and sales promotion
expenditure for the year 2008-2009 amounts to Rs 7, 92,913: catalogues and Descriptive
leaflets are also provided to dealers. The main users of the product are farmers. So the
advertisement is given in local channels only. The company also gives dealers board to
dealers as an advertisement for their product.

Other Advertisement are Used

 Radio ads

 Wall paintings

 Hoarding

 Flexes

 Tin boards to dealers

 Dangles

 Pamphlets

 Flex banner

 Cinema slides

 Yearly calendar

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Sales Procedure
1. Dealers can use own or rented vehicle

2. Vehicle is weighted before going to godown

3. After weighting it is loaded with required quantity

4. Vehicle is then weighed with load

5. Weight of products is verified

6. Bill clearance done

Training for KS sales persons was conducted from 2001. According to the training
session the main objectives of sales management were

a) Sales volume

b) Contribution to growth

c) Continuing growth

Cattle Shows
Company sponsors cattle shows conducted by milk society, dairy departments etc.
Cattle shows neither help the company to reach many prospects nor reached their sales force.

Feedback from Customers

Marketing department encourage feedback from the customers. Labels with address
for enquiry are put each packet for feedbacks.

Obtaining sales order

Dealers are selected by proper methods. Dealers can give order either directly or
through telephone. Date of delivery is given in advance.

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The pricing of KSE is flexible. Pricing of the product varies according to the cost of
raw materials. During 1998 the company was forced to increase the price of their product.
But when the price of row materials lowered, the company decided share it with the
customer. As a result there was a reduction of Rs 13-18 per pack. According to Kerala
General Sales tax a 15% additional sales tax was imposed. So price were renewed from 23rd
August 2006.

Dealers Promotion
It carried out by providing dealers with

a) Banners

b) Purchase- pointers

c) Dealers commission is granted at the rate of 10%

Marketing segmentation
Since the final consumer of cattle feed is cattle, market segmentation is done, on the
basis of milk production of cattle is segmented as
1. Dry animals with no milk

2. Animal yielding milk 5 liters

3. Animal yielding milk between 5-10 litters

4. Animal yielding milk more than 10 litters

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Authorized dealers

Sub dealers Wholesalers

Retailers Wholesalers

Customers Retailers


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Department Structure





The main function of Finance department is to have overall control over

both inflow and outflow of the financial resources. The finance department is divided into
different sectors.

The authorized share capital of the company is Rs 10crore and issues and
subscribed capital is Rs3.2crore. The par value of 1 equity share capital is Rs 10. The
company issued 6000 bonds 5% redeemable cumulative per share of Rs 100 each. The
redeemable of this allotment. The company went in for public issue of shares in 1994.
Company shares listed at stock exchange at Cochin, Chennai, and Mumbai. The present
market value of the company share is Rs 200. The reserves and surplus us on 31 st march2012
is Rs . The company paid a dividend of Rs for the year

2011. Financial accepts fixed deposits from the public at the rate of 15%PA. The company
keeps books as purchase day book, sales day book, cash and bank book.

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Major Applications
Computers are used for accounting and technical aspects of account such

 Inventory control

 Production Planning and Control

 Purchase Accounting

 Budgetary control and standard costing

 Machine capacity utilization

 Quality control

 Input/output Analysis

 Market research

 Management Information System

Source of Finance
Long term Finance, Medium term Finance and short term Finance is
considered as source of finance. Source of long term finance are

 Shares

 Debentures

 Internal finance

 Public deposits

 Industrial financial institution

 Industrial banks

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Sources of Medium term Finance
 Redeemable preference shares

 Debentures

 Bank loans

 Hire purchase and installment system

 Public deposits

 Mortgage loans internal finance

Sources of short term funds

 Bank OD

 Trade creditor

 Money lender

 Customers advance

 Loan from MD and Directors

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Capital Structure
It consists of both owned capital and borrowed capital. Owned capital
consist of funds brought in by owners, borrowed capital consist of shares debentures and

Financial policies
Accounts in KSE Ltd are prepared under historical cost convention on
accrual basis unless otherwise specially stated in notes to account

1. Fixed Asset
Asset put to use have been stated at cost less depreciation. Asset not put to
use have been stated at cost

2. Depreciation:
Depreciation on fixed assets have been provided on written down value

method at the rate prescribed in the company Act 1956,

3. Investments
Investments as at the aloes of the year are valued at loses cost as net
realizable Value.

4. Goods in transit at cost

5. Retirement benefit:
A. Contribution to Provident fund and employees welfare funds is
charged to Profit and Loss Account
B. Gratuity

The accruing liability towards the gratuity of employees in covered by the group
gratuity assures in scheme is charged to Profit and Loss account. Gratuity in respect of whole
time directors is provided for or gross whole time directors is provided for on gross basis for
on charged to P&L account

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6 Sales:
Sales are stated gross of excise duty as well as net of excise duty and are stated
exclusive of VAT/ sale tax

7 Claims:
Claims are accounted for as fund where finally determined/ settled.

8 Grants:
Grant/ subsidies received specially related to capital assets, are credited to the
carrying cost of the respective assets other. Subsidies received are credited to capital reserve .

9 Inventories:
Inventories as at cost of the year are valued at lower cost or net realizable
value. Cost includes cost of purchase, conversion and other cost, as the case may be, incurred
in brings the Inventories to their location/ condition, determine on the following methods.

a) Raw materials : FIFO

b) Packing materials : FIFO

c) Stores and spare

and consumables cost : At weighted average

Borrowing cost:
Borrowing cost that are attributed to the acquisition or construction or
production qualifying assets are capitalized as part of the cost of such assets. A qualifying
asset is one of that necessarily takes substantial period of the fine to get ready intended use.
All other borrowing costs are charged to revenue.

Tax on income:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is the required on timing difference, being

Page | 56
difference between taxable income and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods where there is un absorbed
depreciation or carry forward losses deferred tax assets are recognized only if there virtual
certainty of realization of such assets. Other deferred tax assets are recognized only to the
extent to there is reasonable certainty or realization in future.

Segment reporting:
The company’s primary segments (business segments) have identified as the
a) Animal Feed Division

b) Oil Lake Processing division

c) Diary Division Compressing Milk and Milk Products Industry Ice Cream.

There no reportable geographical segments. Segments revenue, segment

results, segment assets and segment liability include the respective amounts identifiable to
each of the segment as also amounts allocated on a reasonable allocated to any of the
business segment, are shown as unallocated expenditure. Assets and liabilities that cannot be
allocated between the segments are shown as part of unallocated assets and liabilities
respectively. Later segment transfer of processed material is accounted considering the
estimated reliable value of such goods.

Foreign Exchange Transactions:

Monetary assets and liabilities relating to transactions involving foreign
currently remain unsettled as the end of the year end rate. Gains or loss due to such
transactions of foreign exchange transactions (other than for fixed assets) are recognized in
the P&L accounts of Gains or loss due to such transactions of foreign exchange transactions
relating to fixed assets, if any, are adjusted the carrying cost of such assets.

Capital expenditure
The ice cream manufacturing Unit adjacent to our existing cattle feed
plant at Vedagiri has been commissioned on 28.03.2011. The capital outlay of the new ice
cream unit is 127 lakhs as on 31.03.2011 excluding the value of land already owned by the

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The success of a company depends upon the quality of its product. Quality
is the totality. Quality is the totality of features and characteristics of a product and service
that bear on its ability to satisfy stated or implied needs. Total quality is the key to value
creation and customer satisfaction.

The quality control department has to play an important role in the

success of a company through innovating quality product. It aims at total quality control. It
begins right from the purchase of raw materials to after sales quality check. Uncompromising
quality is the main feature of KSE. It is with which the company maintains its reputation. The
quality control department ensures the quality of cattle feeds through testing the products at
different stages. Statistical sampling techniques are applied for quality control tests. The
quality control tests include the raw materials inspection, in process inspection, finished
products inspection and finally after sales quality control.

Department Structure





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Steps in Quality Control
In order to ensure total quality, tests are conducted right from the stage of raw material
acquisition to after sales. Payment of raw material is done on the basis of thetest results.
There are four stages in the quality control:

1. Raw material quality verification

2. Quality verification during grinding and mixing

3. Product quality verification

4. After sales quality control.

1. Raw material Quality Verification

Protein fat are the required context. The main impurities are moisture and silica.
The fat content in the raw material is verified by a test known as “Crude fat test” apparatus
used is known as soxtlete apparatus. There are three such apparatus in the lab. Protein content
is verified with the help of an apparatus termed as fumes chamber. As protein is a Nitrogen
compound, protein content can be verified using this apparatus to measure nitrogen content.
Only one apparatus is there in the lab for this purpose. Moisture content of raw materials
should not be above a prescribed percentage (usually 10%) the best tube for moisture is
conducted to ensure that the raw materials are properly dried. In later concept in 5gms is
tested by using an apparatus “Hot Air Owen”. Silica content is verified using the test named
as “Acid Insoluble Test” apparatus used is “muffle furnace”.

Other Apparatus Used

 Distilled water unit

 Vacuum pump

 Hot plate

 Electric weight machine

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Quality Verification during Grinding and Mixing
In second stage there are two quality checks:

a) Check during grinding.

Check during grinding is done at the grinding stage to ensure the proper size

b) Check during mixing.

Check during mixing is conducted to find out whether the mixture is properly
balanced. Also the weight is checked at this stage.

2. Product Quality
It involves

a) Calcium content verification.

b) Chlorine content verification

c) Phosphorous content verification

Volumetric test is used. Product quality verification is done at 3 shifts by taking samples and
checking it at the lab. Then it is pat before the medical officer for approval.

3. After Sales Quality Control

Customers are given proper guidance and instructions. They are advised not to
store the feed in moist place, also labels put in each bag to ensure proper feedback.

Quality control personnel regularly undergo in – service training at courses conducted at
control food Training and Research Institute (CFTRI), RRL, NDRI & other national research
organizations including various veterinary colleges in the southern states.

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KSE, having an annual turnover of Rs.250 crores, which s the largest

manufacturer of cattle feed. It provides employment to around 1000 members directly and
another 5000 indirectly. Its share is being listed in three stock exchanges in Cochin, Chennai
and Mumbai. The company commenced its production in the year 1972.

It is marketing annually about 1.80 lakhs per tons of superior quality

cattle feed. KSE has successfully launched its Vesta Brand Ice Cream which has been well
accepted in the market for its matching international quality standards. KSE plans to add
more ice cream production units across Kerala in the coming years to serve all pockets.

KSE is in the oil extraction industry in the past 31 years. It is having

two solvent plant with processing capacity of 100 tons per day. The company has also a
chemical oil refining plant of 20 tons per day. The company has secured the National
Productivity Award for the year 2001-2002 for being first in terms of production efficiency in
the animal feed sector. This is the sixth time in a row that the company is being selected for
this most coveted award.

It is pertinent it note that in the Kerala industrial scenario, where

many companies are choosing down, either due to labour unrest or due to other economic
reasons, KSE continue to commence new venture each year and runs them successfully. The
company is having six units at different locations. The relation with the labour unions is very
warm and cordial.

KSE, with a capital base of Rs.36crores embarks on an expansion to

double its solvent extraction capacity and add a most modern ecofriendly vegetable refining
plant. The company has already identified six Acres of land in the KINFRA small industries
park, koratty fort his expansion.

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Vast experience of 36 years in the cattle feed and solvent extraction industry. KSE has
survived many ups and downs in the industry

 KSE is the Market leader in the cattle feed segment

 KSE has won many awards and recognitions because of its outstanding quality of
products which give them an edge when comparing to others companies.
 KSE has a Huge network of product dealers because of this the company need not
spent muc n the marketing.


Labour unrest from 10 Feb 09 to 25 Mar 09 in KSE's Swaminathapuram unit caused a rift
between the workers and the management

 KSE is finding it difficult to procure coconut oil cake domestically and has rely on
imports. Further the depreciation of the Indian Rupee against US Dollar is pushing up
KSE's import costs
 Promotional activities are limited
 High price row materials
 High cost of production

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 With the VAT removed on sale of cattle feed, de-oiled cakes and coconut oil, KSE's
products are competitively priced
 KSE is in process of establishing ice-cream production units near identified potential
markets. This will expand its sales


Cutthroat competition from the unorganised sector who have comparitively less labour
overhead costs

 Probable entry of MNCs in the cattle feed sector

 Rise in crude oil prices causing an increase in input costs

 Stagnant growth in cattle population might slower growth prospects of the cattle feed

 Indirect control by govt. over the price of milk

 Crop rotation by farmers, since oil seeds and grains are raw materials for KSE
 Import of cheaper oils for industrial consumption leading to a fall in demand for
solvent extracted coconut oil

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We have found many things in KSE they are as follows:
 The company has huge market demand for its product. Because company has created
a goodwill among customer over years.
 Company has faced many they problems over the years and they have been
successfully running. Because of its good administration department.
 Company has always tried to maintain a good employer-employee relation by
providing good working condition.
 While other companies have put lots f money in marketing their products KSE has
limited marketing. But they have a huge demand for their products
 Even though they are running 365 days but they still can’t satisfy the demands of the
 In olden days their demand has been highly seasonal but now it have change.
 They are manufacturing milk and ice cream but due to unavailable of raw material
they have been limited their market of those products.
 Their products price is little higher when compare to competitors but they still have
demand because f its supreme quality of those products.

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 Gather more raw materials from domestic territory. It reduce the
cost of raw material and transportation.
 Introduce direct marketing with customer so that it helps customers to
buy goods at low cost
 KSE can think of establishing human relation development for dealing
with all aspects related to its employees

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KSE ltd Company has been running successfully over years.

They have seen many up and down in market still they have become
successfully. The reason behind it is the management and the workers jointly
work together for the good will and for the profit of the company at times it
needed most. Most of all they have given only good quality products to the
costumers according to the needs of the customers. Perhaps this is the real
reason for the company’s success.

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 Kotler Philip, ‘Marketing Management’ Eleventh edition, prentice Hall of India Pvt Ltd,
 Annual report of KSE Ltd.
 Principles of mgt


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