INTRODUCTION

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INTRODUCTION

An organizational study is the systematic study on the work of over-all organization.

It involves study of various departments, manpower department function of and
process each department. It provides students the opportunity to know, observe,
learn, collect and analyse the nature vision, objectives and functioning of an
organization.

AVT Natural Product Limited (AVT NPL) is a public limited company promoted by AV
Thomas as a strategic diversification from the traditional plantation business of AV
Thomas Group. AVT Natural formed in 1994 belongs to the renownedAVT Group of
companies and in the last 25 years has grown manifolds.

It started marigold cultivation on 20 acres of land that has since gone up in to 35000
acres producing 100000 metric tonnes of flowers with the support of 30000 loyal
farmers from producing feed grade Oleoresins in the initial years AVT Natural today
produces Natraceutical grade products that met global quality standards in food
safety.

AVT natural product Ltd, which is the major business unit of AV Thomas group, is
now the largest exporter of Marigold oleoresins in the world. Company has formed
strategic alliance with Top USA based companies like Ball Helix and Kemin Health.

Having been strategically located in Cochin, Kerala, which is the home of species,
AVT naturals has strategic advantage of proximity to the resources and logistics
advantages of import and export facilities. The company's manufacturing plants are
located in Kerala, Karnataka, Andhra Pradesh and Tamil Nadu.

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A V Thomas group of companies consists of diversified business in tea, rubber

and consumer products such as spice, food ingredients, leather and health care

Products. They have grown from strength to strength in:

 Manufacturing capabilities
 Technological strength
 Export marketing capabilities
 Domestic retailing strength
 Quality in international business

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OBJECTIVE OF THE STUDY

 To make an in-depth study on the overall function of the organization.

 To familiarize the organization structure of the company.
 To understand how the key business process are carried out in the
organization.
 To relate theoretical knowledge with actual practices.
 To study the business processes that are carried out by the company.

LIMITATIONS OF THE STUDY

 In depth study in each and every department in the organization was not
possible
 The schedule of the department heads restricted collection of detailed
information
 Limited time to complete the study.
 Due to the non-availability of certain information critical evaluation was not
possible
 The reliability of the data depends upon the company records .

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 CHAPTER 2

INDUSTRY PROFILE

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AVT Natural products ltd belongs to the spice industry. The spice industry profile is
as follow:

The story of Indian spices dates back to 7000 years into the past. India is known as
the "home of spices" because there is no other country in the world, which produces
as much kind of spices in India. The climate of the country is also suitable for almost
all spices. The history and culture of Indian spice is probably as old as human
civilization itself. According to international organization for standardization (ISO) the
term "spice and condiments" are applies to natural plant for vegetable products or
mixture thereof in whole as ground form, as are used for important flavour aroma
and for seasoning of goods.

SPICES INDUSTRY OVERVIEW

Spice industry has been witnessing phenomenal growth rates both in the
international and domestic sector. The growth in the sector can be attributed to the
change in the life style patterns of the consumers all over the world. The shift in the
consumption trend towards natural products has also contributed to the increased
global demand of spices and herbs. spice and derivatives market is booming
because these products find application in a number of industries including
pharmaceutical, medicine, beverages, food processing and personal hygiene
products. Developing countries especially in the Asian continent are the major
producers of variety of spices. A large percentage of international and domestic
trade takes place in the dried from India, Indonesia, china are few of the prime
producers of variety of high quality spices and also significant contributors to the
global spice trade. The culinary herb market is also expanding though the production
areas are widely distributed .1ndia is one of the prime producers and suppliers of
raw herbs to USA and Europe. This is a labour intensive industry; therefore
producers must have a sound knowledge of the methods and processes involved in
the production of herbs and spices

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India faces big competition from China, Malaysia and Pakistan in terms of pricing of
the produce. Manufactures should therefore ensure consistency in supply, product
quality, pricing and marketing strategy to increase the share in export. Producers are
incorporating latest methods and technologies to ensure higher quantity of spices
and herbs, India is one of the prime exporters of pepper, chillies, turmeric, seed
spices spice derivatives to me rest of the world.

India is known the world over as ‘The Home of spice’ thus spices condiments need
no introduction. The climate of the country is ideal for the growth of almost all spices.
Spices are an important group of agricultural good, which are virtually indispensable
in the culinary art. They also play a significant role in our national economy and also
in the economics of several spice producing, exporting and importing countries. India
accounts for about 45% of the global spice exports. In India from the point of view of
both domestic consumption and export, spices are important commercial crops.

According to the International organization for standardization (ISO), there are about
109 spices and India produces as many as 75 in its various regions. The term spices
and condiments apply to natural plant or vegetable products or mixture in whole or
ground form, which are used for importing flavour, aroma and piquancy to the food
items. Spices are also being used within the country for flavouring foods and in
medicines, pharmaceuticals, perfumery, cosmetics and several other industries.

SPICE OLEORESINS

Spice oleoresins are essentially the concentrated liquid form obtained from spices.
This spice derivative has the same character and property of the spice it is obtained
from Oleoresins is popularly used for food favouring in the food processing industry.

The demand for these derivatives is on the rise in the global market and India tea is
cashing on this booming market. India is one of the leading producers and exporters
of black pepper Oleoresin. We are one of the chief importers of paprika and black
pepper Oleoresin. The demand of the product can be attributed to a sharpie in the
snacks food and fast industry for producing standard ideal effect on taste. High
concentration of oleoresin makes then difficult to use in the food industry unless they
are diluted.

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These derivatives are sometimes combined with other spices and also used as a
base for a number of seasonings. Oleoresin contains the aroma and flavour of spice
in a concentrated form, the form or usually viscous liquids or Seri sold materials.

Use of Spice Oleoresins

Spice Oleoresin has wide application in a number of industries for its strong flavours
and aroma.

 Meat earring
 Beverages
 Pharmaceutical
 Perfumery
 Confectionery
 Tobacco

ESSENTIAL OILS

Essential oils have traditionally been used for therapeutic value. These oils have the
properties of the spice or herb they are derived from. These aromatic and volatile oils
are extracted from the leaves, stems and flowers of a plant. Essential oils are of
complex composition and contain aldehydes, alcohols, esters, phenol is varying
proportions. Since there specialty oils have a very strong aroma and are highly
volatile, they are used as a raw material in flavouring and perfumes.

These steam distilled spice derivatives are primarily extracted from spices and
herbs, in the raw form. Since these oils are highly concentrated, they need to be
diluted for usage.

Use of Essential Oil

The essential oils are traded in high volume and are particularly consumed in the
food flavours, personal care, industrial and pharmaceutical industries. These spice
derivatives can have various benefits including antiseptic and antimicrobial action,

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for a healing and soothing effect. Some of the products in which those essential oils
used are:

 Soap
 Cosmetics
 Perfumery
 Confectionary
 Chewing delicious
 Acrateal drinks.
 Syrups

SPICE OILS

Spice oil is a spice derivative that is extracted generally by steam distillation process.
The spice oil distilled off from the spices extraction. These oils are the volatile
components present in spices and provide the aroma and flavours of the spice they
are made from. India is on the top most produces of spice oils and contributes to
around 70% of the total spice oil production. Countries including USA, EU, and
Japan and Middle East countries are the major importers of spice oil. The exporters
of Indian spice oils have been rising significantly in the local few years owing to a
sharp rise of demand in the fast food sector.

Popular spice oils

Spice oils are traded in large volumes for use in a number of industries.
Some of the extensively traded oils are as follows:

 Clove Oil
 Cinnamon oil
 Pepper oil
 Ginger oil
 Cardamom oil

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  Nutmeg and mice oils
 Mint oil

Use of spice oils

 Food processing
 Beverages
 Pharmaceuticals
 Chemicals
 Aromatherapy
 Personal hygiene products, example: tooth pastes, mouth washes and
aerosols.

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WORLD SCENARIO INTERNATIONAL TRADING SPICES

Spices trade has always major economic important through the human. The
international trade in various forms of spice has grown tremendously in the
last decade. According to an estimate 85%of international trade in spice is
dried and used after cleaning but without future processing. Pepper is one of
the most valuable spic3es in the global trade .countries including China, India
are emerging has the leading spice trader.

EXPORT

Export of spice oil and India has been increasing every year. Spice oil and
oleoresin are exported to about 18 developed countries in the world. It may be
noted that the share of oil and oleoresin in total earnings from spice export
from India accounting total exports. UK, Canada, Switzerland, Japan,
Singapore, Netherlands, Spain and Israel are some of the importers of spice
oil and oleoresin from India.

IMPORT

Though Indian manufacture of spice oil and oleoresins are situated in the land
of spices certain spices are to be imported because of their high yield, for
example the yield of the Indian pepper is lesser than Sri Lanka variety. The
same in the case of nut mug and mace, cloves on the brother hand are not
grown in quantities enough to meet the manufacturer requirement in India.
They are hence imported to India due to demand for clove oil in foreign
markets.

MARKET OUTLOOK
In all developed countries, there is a powerful lobbying against all sympathetic
food colours and flavours since it may cause health problems. Since the
quality of essential oil being subjective, there should be direct contact
between buyer and seller for quality standards.

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INDIAN SCENARIO

India has traditionally been known for its spice and culinary herb production. It is one
of the largest spice production and consuming country. Its strategic location, climate
condition, advanced production process and availability of cheap labour makes it
advantages for the producers to ensure large scale production of quality spices and
herbs.

The department of agriculture and co-operation, ministry of agriculture, is the

prime agency responsible for the integrated development of spices in India. It is
formulating national policies, schemes and programs for achieving rapid growth in
the sector, through the optimum utilization of India's land, soil and plant resources, it
supplement and complements the effort being made by the state government to
promote production of various spice products.

The spice board of India is one of the five commodity boards functioning under the
ministry of commerce and industry. It is an autonomous body responsible for the
export promotion of the scheduled spices and production development of some of
them such as cardamom and vanilla. It holds several responsibilities related to
export promotion of spices, like quality control; registration of exporters and
documentation of trade information; of inputs to the central government on policy
matters related to import and export of spices; etc.

APPLICATION OF SPICES

 Food flavouring
 Food preservation
 Personal and hygienic
products
 Aromatherapy
 Feeds
 Pharmaceuticals
 Beverages
 Pharmaceuticals
 Industrial chemicals

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MAJOR MARKETS FOR INDIAN SPICES

India has traditionally been associated with providing spices such as cloves to the
rest of the world As a result of appropriate climatic condition, low labour rates, use of
advanced technology and provision of safe and high quality spices India is no
emerging as one of the leading exporters of a variety of spices and culinary herbs to
a large number of countries. The volume and value of spice trade with these
countries is also on rice. Some of the major importance’s are:

 Japan
 Srilanka
 U.A.E
 Malaysia
 China
 Nepal
 Bangladesh
 Singapore
 France
 Netherlands
 Canada
 Spain
 South Arabia
 South Africa
 Australia

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FUTURE SCOPE OF THE INDUSTRY

Export of spice oils and oleoresin from India has been increasing every year. I may
be noted that the share of oils and oleoresins in total earnings from spice export from
India is increasing.

In UK, Indian foods are becoming more and more popular. This means that the
demand for spices and spice products may go up in the coming years.

In all developed countries there is a powerful lobbying against all synthetic food
colures and flavours since it may cause health problems. The opportunity of turmeric
as a food colane comes up in this context.

The scope of industry is increased due to:

 There has been a substantial increase in use of fresh herbs and spices owing
to an increased demand in the hotel industry.
 Change of consumers towards leading a healthy lifestyle has increased the
use of herbs/natural spices for natured flavouring.
 Use of spice derivatives like essential oils are being widely used consumption
of ethic food.
 Introduction of flavoured coffee, tea and aerated drinks in the beverage
industry.
 The global demand of spices has increased due to increase in demand and
consumption of ethic food.
 A sharp growth in the processed food consumption increase in the demand
for natural for various health therapies.

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 CHAPTER 3

COMPANY PROFILE

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AVT Group Business

Plantation: 15000 acres of tea, rubber, coffee & spice plantation in south India with
processing factories.

Consumer products: tea, coffee and spices .0ne of the largest and popular brands in
south India.

Leather goods: AVT leather manufactures a wide range of leather goods for well
non-brand names in various countries.

Biotechnology LJ international Ltd- plant tissue culture product range covers more
than 70 products comparing of flower, fruit forestry, foliage and mechanical plants
which are exported to several countries.

Commodity exports: export of spice, natural rubber, coir products.

Logistics: licensed custom agents, air & sea cargo agents, warehousing.

Trading & agencies: building materials, rubber chemicals etc.

Food & feed ingredients: AVT integrated spice project

Plant locations of AVT

 Vazhakkulam, Marampilly p.o, Aluva
 Harikura village, Honavallihobli, TipturTaluk, TumKur Dist, Karnataka
 NayanapalliCross, Bisibanepalli (via),Hindupur, Andhra Pradesh
 Mysore trunk road, Puthuvadavally, Sathyamangalam, Tamil Nadu

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One of the world's largest exporters of marigold oleoresins

AVT natural product it is one of the principal players in the marigold food grade /
natraceutical grade product in the global market. The sustainability of the business
hinges on the relationship with the farming community and the professional
competence of our expert in managing the marigold business. Also it has a good
track record of logistics in the produce. The excellent pre-processing centres at
respective locations, adds value by improving the process, thereby reducing the
ingredients losses in the process chain.

The pre processed raw materials is then transported to cochin where AVT natural
has a state of an art extraction facility. The continuous plant can handle more than
55tons\per day raw material. The extraction facility matches with the global food
safety standards and has the prestigious ISO 9001-2000, HACCP, AIBI certifications
to its credit. We are also a vendor certified unit of kamin foods, the world’s largest
producer of lutein from marigold.

Major competitors

 SYNTHET INDUSTRIES LTD

 PLANT LIPIDS
 KANCORE LTD
 AKAY LTD
 ENJAYES NATURAL FLAVORS LTD

Quality certificates
 ISO 9001 -2000
 ISO 22000-2005
 SPICE House certified by the spice board of India
 GMP(Good manufacturing practices)
 McCormick vendor certification 2000
 American institute of banking International, USA (AIBI)1999, superior rating in
2002, 2003, 2004, 2005, and 2006

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Mission, Vision, Values & Team

Mission

 To be a Global Leader in Marigold Extracts through a fully integrated supply

chain with excellence in Plant Science & Agriculture and Logistics
Management.

 To achieve growth and stability in performance by diversifying to value added

natural ingredients for synergistic business segments through development of
product research and technology base.

 To bring in highest level of efficiency, traceability, food safety and quality in

the supply chain through Contract Farming.

 To establish brand equity for natural ingredients through development of

consumer marketing skills.

 To comply with ever changing international statutory regulations for our

business segments.

 To consistently add value in our business to deliver superior returns to all

stakeholders-customers, employees, shareholders, suppliers, and society.

Vision

 To be a global leader, enriching lives through natures on

Ingredients as food, nutrition, and medicine for mankind.

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  Provide total customer satisfaction through continuous improvement
in products, process and services.

 Develop and motivate employees through ongoing HRD programs.

Values

 Constantly strive for value in whatever we do.

 Belief in ethical business and transparency.

 Encourage individual excellence and foster environment for teamwork.

 No short cuts & never sacrifice long term for short term.

 Know the business environment, product and customers well - update

knowledge.

 Respect the neighbourhood and individuality of each customer, supplier, and

employee.

Team

 AVT Natural has 160 permanent dedicated employees in its direct rolls.

 450-foot soldiers supporting contract farming advising farmers on Good

Agricultural Practices (GAP).

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AVT Group of Companies at a Glance

A V Thomas group of companies consists of diversified businesses in Tea,

Rubber, and Consumer products such as spices, food ingredients, leather and
healthcare products. AVT grown from strength to strength in:

 Manufacturing Capabilities
 Technological Strengths
 Export Marketing Capabilities
 Domestic Retailing Strengths
 Quality in International Business
 Experience in Managing Joint Ventures

SL NO. UNIT YEAR ACTIVITY

1 The high land produce company 1925 Tea and cardamom
limited
2 The midland rubber produce 1934 Tea, cardamom and rubber exports
company limited
3 AVT and company limited 1935 Trading exports and manufacturing
4 The Kalpatta estate limited 1936 Tea and cardamom
5 The Rajagiri rubber produce 1937 Rubber, coffee and cardamom
6 The Nelliampathy tea produce 1941 Tea and coffee export
company limited
7 The shevaroy estate limited 1943 Tea, coffee, cardamom and edible oil
8 Neelamai agro industries limited 1946 Tea trading and exports
9 AVT investments limited 1976 Financial and investment company
10 AVT leather and allied products 1976 Leather goods and exports
limited
11 Nelliampathy investments limited 1976 finance
12 Hawthorne investments limited 1980 Financial and investment company
13 Midland latex products limited 1989 Latex examination glover
14 AVT natural products limited 1994 Spice oleoresin and essential oils
15 Rush AVT medicals limited 1995 Manufacturing caters

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 CHAPTER 4
FUNCTIONAL DEPARTMENTS

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Organizations are built about a group of functions, each of which provides support for
the operations of the business. Each functional department serves as a specific
purpose with an organization to achieve its objectives.

ORGANISATIONAL STRUCTURE

Organizational structure is the basic frame within managing decisions takes place.
Structure is the pattern in which various parts or components of the company are
interrelated or interconnected. Organizational structure is the pattern of relationship
among people in the organization. Design in organizational structure is considered to
a matter of choice among large number of alternatives.

A structure of organization is mainly hierarchical concept of subordination of entities

that collaborate to serve one common aim. An organization can be structured in many
different ways and styles, depending on their objectives and ambience the structure
of an organization will determine the modes in which it operate and perform.
Organization structure will allow the expressed allocation of responsibilities for
different functions and process to individual in an organization structure is normally
hired under time —limited work contracts or work orders, or under permanent
employment contracts or program orders.

Different department in AVT NPL

1. Human resource and administration department

2. Production department

3. Sales and marketing department

4. Finance and systems department

5. Engineering department

6. Quality control and assurance department

7. Purchase department

8. Research and developing department

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HUMAN RESORCE AND ADMINISTRATION DEPARTMENT

Personal management refers to a set of programs, activities of functions designed

in order to maximize both employee as well as organizational effectiveness.
Personal department of AVT NPL view people as the most important source of
assets to be used for the benefit of organization and society. The human resource
philosophy of the management aims at formulation of policies that human
resources neutrality, mutually rewards and mutual responsibilities.

DEPARTMENT STRUCTURE

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OBJECTIVES OF HR DEPARTMENT

 To ensure man power recruitment in all department

 To provide adequate training to all employees and to ensure that they
are aware of their role in the system
 To ensure that productivity of the employees are improved by way of training
 To ensure that no man lost days due to industrial urgent
 To provide welfare activities for the workers.

POLICIES

 Employees will be identified by photos identity card.

 Vehicles, drivers, visitors, entering the factory premises will be checked at

the entrance by security personal document.
 Decision regarding the working hours leaves rules, health care policies, trade
policies etc.

FUNCTIONS

Recruitment and selection

Training and development
Performance appraisal
Promotions
Moral boosting and involvement
Compensation and benefits
Welfare activities
Aiding project work
Promotion and demotion employees
Installing team spirit and work participation in management

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 PRODUCTION DEPARTMENT

Production is the creation of goods and services. It is converting the inputs of raw
material, labour, machinery and money into output, i.e., goods and services with the
help of certain production process.

DEPARTMENT STRUCTURE

Production process is headed by the vice president, operations which include one
executive, three supervisors and forty technicians. The production plant is divided into
following areas;

Pre-treatment area

In pre-treatment area, the marigold meal is palletized. There are different pelletizes
for marigold and spices.

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Solvent extraction area

In solvent extraction plant, the palletized meal has to undergo 3 different processes.

The meal is treated with hexane solvent in the extraction plant and extract, the
xanthophylls pigment content from the meal are evaporated.
The mixture passes through the process of evaporation here by solvent
gets evaporated and Xanthophylls is left as residue.
The xanthophylls are further evaporated in the process called stripping in which the
solvent contents remaining are also removed to give the pure xanthophylls.

Finished goods section

This is the final stage where the packing materials after quality checks are taken and
locked with the finished material ready to shift to the final testing. Production is carried
out as the production plan. This operation is divided into 4 types based on quality of
raw materials and type of production and they are continuous extraction, pilot
extraction and steam distillation.

 Continuous extraction: the company has one of the largest continuous

extraction plants in the world. This type of extraction plant is used in marigold
extraction. The plant has a capacity of 40 tonnes per day in 3 shifts.
 Batch extraction: presently this type of production is used for the chilly
extraction and the capacity of tones per day.
 Pilot extraction: the process is same as that of batch extraction and this is
used for product development purpose.
 Steam distillation: the type of process is used for extraction of volatile products.
The collected marigold flowers or spices are silage in the hydration unit and
send to screw press. The pressed flowers or the spices are then shredded and
dried. After drying they are grained to obtain the meal. The meal is brought to
the solvent plant. In the pre-treatment area that meal is then palletized. There
are separate palletizes for marigold and spices.

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PRODUCTION PROCESS

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SALES AND MARKETING DEPARTMENT

Sales and marketing is the integral function of the company. This department handles
the distribution of the products in the international market. Distribution is done through
direct shipment except in the Europe market, where the company has few agents.
Through the high quality of product that AVT supplies, the image of the company in
the world market is that of an extremely quality conscious and prompt supplier. The
sales and marketing department helps in maintaining a good image and broadening
the market horizons. All this are achieved by effective promotional activities. This is
done through taking part in international food and spice festival. The company has no
direct connection with the customers since are no direct outlets for the company. The
payment collection of sales is made through Bank of Baroda.

Products of AVT NPL:

AVT NPL is an ISO 9002 certified company which produces the best quality spice
oleoresins and marigold oleoresin from its 100% export-oriented unit for highly
competitive world market of USA, Europe and other Asian countries.

Products of the company are:

 Natural colour

• Marigold extracts

• Oleoresins paprika

 Natural flavours

• Black pepper oleoresins

• Celery oleoresins

• Capsicum oleoresins

• Nutmeg oleoresins

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  Antioxidants

• Rosemary extracts

 Essential oils

• Black pepper

• Celery

• Ginger

• Nutmeg

PROMOTIONAL ACTIVITIES

The company is trying to make awareness among the representatives of other

international companies about the advantages of using natural food products by
participating in international food exhibitions in the food magazines for the promotion
of their products.

DISTRIBUTION

The distribution is done through direct shipping towards Europe and America where
the company has few agents.

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DEPARTMENT STRUCTURE

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 FINANCE AND SYSTEM DEPARTMENT

Finance and system department is headed by Vice President Finance and assisted
by the Financial Manager, Assistant Manager and executives at factory level and Vice
president comes responsible accounting, finance and costing. Apart from this
function, the department has to work hand with HR Department in connection with
disbursement of salary, allowances and grievances. This department consists of
accounting, financing and costing.

Finance department is one of the important factors, which provides access to all
resources for being employed in manufacturing and merchandising activities.
Financial management means keeping sufficient balance of money to meet the daily
requirements. This department monitors the day to day financial activities and guides
the management in the right direction and forecast the profit and growth of the
organization.

Financial management deals with pricing of the products or raw materials. It issues
the pricing list of the materials to the customer and if the customer is satisfied with the
price shown by AVT NPL then only the work orders are issued. Purchasing assets,
payment to farmers for collecting raw material, compensation to employees etc are
the main application of funds. Main sources of funds are sales, sale of quality shares
etc. payment for purchasing raw material are in the mode of direct payment to the
farmers. Payments received from customers are done through Bank of Baroda.
Salary payments made to employees are through bank accounts and to contract
employees. It is made as direct payment through contractors.

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FUNCTIONS OF FINANCE AND SYSTEM DEPARTMENT

 Preparing sales budgets based on the department budget.

 Considering the individual department budget and getting the approval of the
chairman
 Preparing the profit and loss account, balance sheet for stationary and
internal purpose. Submitting the monthly information to the management, i.e.
the estimated budget v/s actual budget of day to day transactions.
 Apart from this function, the department has to work in hand with HR
department in connection with disbursement of salary, allowances and
grievances.

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DEPARTMENT STRUCTURE

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ENGINEERING DEPARTMENT

In engineering department different units in three sections are headed by deputy

manager encaging services and report to the vice president. This department is
divided into three sections based on the function namely Mechanical, Electrical and
Utility.

Mechanical

Mechanical section undertakes repairs and maintenance of all machines and also
takes care of preventive maintenance, modification of existing machineries is
allocating as per the requirement in the production department. The production
department issues job requirement form on the basis of which the engineering
department initiates action.

Procedure of work

Concerned department in consultation with the engineering department gives the job
description. The job description is prioritized after completion for is prepared and give
to the department. The format called hot job order is prepared for work than cannot be
undertaken under factory premises.

Electrical

Electrical department uses power from KSEB through KV substations. Two 350 KV
AVG/ADG sets are used when KSEB supply is not available. This department also
undertakes routine maintenance of electrical circuit equipment like LAN cabling in
addition to preventive maintenance to avoid breakdown. Also co-operates with
government inspection work with 2 technician staff and a supervisor in a general shift.
They also undertake various energy utilization studies to ensure optimum utilisation of
power. This includes power supply calibration of all machines

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This includes power supply calibration of all machines operating and
maintaining equipment in the cooling tower and chilling unit. In certain situation
like energy shortage time the KSEB do not provide supply due to peak time
requirements. So, in these situations diesel is stored in underground tanks.
This department prevents breakdown and interruption to production.

Utilities

Utility department consists of four first class boiler operators in this staff
category and has four technicians. This department is mainly responsible for
generation of steam under pressure. There are two boilers of tons capacity for
each. This steam conveyed through insulated pipe line for production.
This department consists of four processes of the effluent treatment plant.
Each process and distilling of water is treated as per pollution control system.
The waste water is properly treated pertaining to the water consumption and
analysis report of raw materials is send to the pollution control board. Water is
obtained from the near pond and is pumped to the collection tank. From there
water passes through the sand filter and softer which is used for all domestic
purposes in the plant and office.

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ENGINEERING DEPARTMENT STRUCTURE

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 QUALITY CONTROL & ASSURANCE DEPARTMENT

This department is responsible for quality from purchase to finished goods. This
enables the company to build up a good image in the market. They used internal
standard tests and advanced equipment like HPPC, GC etc. the most modern
analytical lab closely monitors quality tests for Aflatoxins PPB (Parts per Billion) level.
Every quality control procedure is confirmed to ASTA/OAC/EU/ISO guidelines.

Major Quality Assurance Policies and Methods

HACCP-Hazard Analysis and Critical point policies

 Delivering constant high-quality natural plant extracts

 Meeting and exceeding the consumer expectations

 Ensure full safe product by implementing good manufacturing practices right

from raw materials to finished goods

 Motivating employees through training and development and effort for

protecting environment in its operations.

Glass policies

AVT NPL is a natural production, processing industry manufacturing spice oleoresins,

food flavour, natural antioxidants etc. AVT ICPL is committed to avoid production
contamination due to breakage of glass by:
 Preventing any authorized glass usage.
 Ensuring classification of glass used in the processing and non-processing
area into four group-based crystals and how essential for processing by
ensuring adequate safeguard to address food safety.
 Progressively moving towards reduction in processing area.
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PURCHASE DEPARTMENT

The purchase department in AVT NPL is headed by GM-Purchase and assisted by

managers. The department ensures the best of materials appropriate to the needs.
The department has two sections;

Purchase department

Procurement department

Purchase Department

The purchase department takes care of all capital purchases which involve
machinery, spare parts, coils and lubricants, chemical and stationary materials.

The purchase process is as follows

• Overall responsibility of purchase activity

• Price monitoring

• Time supply arrangement of materials

• Maintenance and control of the stock register

• Purchase bill verification and recommending payments

Procurement Department

This department takes care of consistent and on-time supply of raw material as per
the requirement of production and planning department. To develop new sources of
raw material to get the cost advantages to the organization the department ensures
that vendors are evaluated to maintain the quality of the raw material being supplied
by them.

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The GM-Procurement is responsible in ensuring evaluation and approval of vendor
materials. The approved vendors are monitored for the supply of the raw materials
made by them.

The raw materials are collected directly from the company's loyal farmers, then that
is transferred to the dehydration unit in particular states and dehydrated materials
are brought to the extraction plant at Vazhakkulam.

Raw Materials

The main raw material of the company is dehydrated marigold. Dehydrated pepper,
ginger, chilly and turmeric are the other raw materials.

GODOWN

The materials are stored in the god own in the company. It has the capacity to store
metric tonnes at time. It is maintained as per international food and safety standards .

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PURCHASE DEPARTMENT STRUCTURE

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RESEARCH AND DEVELOPMENT DEPARTMENT

R&D is an inherent feature of the company's operations which enables the company
to prove talent enveloping natural extracts and formulation. R&D department involves
natural; products to meet specialized customer needs in their full-fledged lab. R&D
was given a special thrust and several new and value-added products are developing
in R&D department. Decolorized and pesticides free paprika oleoresin, chromo
shrimp, rosemary oils etc. are developed here.

AVT NPL believes in novelty and offers customer newer and specialized products.
Keeping in mind the salient requirements of the customer and specific country laws
with regard to Aflatoxins lotion and pesticides residues they Endeavour to meet these
specifications through in house developed processes. As a result, AVT NPL has been
developing in house- separation technology that has been used to produce oleoresin
paprika with absorbance ration of more than Aflatoxins free and pesticide reduce
oleoresins, capsicum etc. AVT NPL also has a wide range of flavours extracted from
different spices both green spices as well as roasted, giving the end product a rich
enhanced flavour. R&D centre is well equipped with an array of sophisticated modern
analytical instruments likes GCs, HPLCs spectrophotometer etc. to scale up new
processes and products from lab to commercial scale, company has invested in pilot
plant facilities for extraction/isolation, crystallization, column chromatography, reverse

osmosis, specialized tea processing machinery, spray drying, microencapsulation etc .

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The company focusing on 3 areas of R&D;

 Planting material development

 Development of new crops
 New product development

Major benefits of R&D

 Higher yield to farmers through superior quality planting materials

 Reduced costs and price

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DEPARTMENT STRUCTURE

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 CHAPTER 5

SWOT ANALYSIS

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SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate this strength,

weakness, opportunities and treads of an organization. it a tool used for identifying
the internal and external factors that are favourable and unfavourable for achieving
the organizational objectives.

STRENGTHS

Largest producers of marigold extract in the world

Developed research and development area

Strong brand image

Sound financial position of the company

Well established industrial relations.

Highest level of efficiency, traceability, food safety and quality in the supply
chain through contract farming.

WEAKNESSES

No direct connection with end customer

Less public exposure through advertisement

Common people have less awareness about oleoresins

There is no domestic market for oleoresins

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OPPORTUNITIES

 Growing demand for natural products

 Company can establish market all over the world
 Increasing imports and exports due to globalization
 Company going for diversification of product

THREATS

 Unable to meet demand due to irregular rainfall in the production place

 Domestic competition
 Mass production by china and Peru
 Presence of well-established competitors in the market
 Change in money value has reduced the income of the company and
adversely affected the Company's profit.

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PORTER’S FIVE FORCES MODEL

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 CHAPTER 6

FINDINGS AND CONCLUSION

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FINDINGS

 World's largest production unit for marigold extraction

 Healthy relationship between management and employees
 Efficient management system
 Good production plant
 Good brand value
 Company provide one of the best employee welfare packages in the
industry
 Quality of product and production process are continuously analysed
 Updated technology
 Effective inter-departmental and interpersonal communication

SUGGESTIONS

 The company should take steps to improve domestic

market
 Advertising more through television and cyber media
 Making direct connection with customers is recommended
 Find more customers for the products in India

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BIBLIOGRAPHY

 Annual reports of AVT NPL

 AVT NPL department manual
 AVT NPL brochure
 The company profile, industry profile, backgrounds details are collected from
the reference records maintained by the company
 Official website of AVT NPL

• www.avtnatural.com

• www.avtnplltd.com

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