Regional Oilseeds Growers Co.

Operative Societies Union Limited,

Chithradurga.
 CHAPTER 1

EXECUTIVE SUMMARY OR GENERAL INTRODUCTION

This project was taken up as a part of the requirement of master of business administration
course as per the directions of the Kuvempu university jnana sahyadri Shankaragatt. The student
of III semester MBA course has to undertake a deportment study project and study of various
departments in the organization.

The study is applicable to “Regional Oilseeds Growers Co. Operative Societies Union Limited,
KOF industries. Chithradurga”, the study covers industry profile, vision, achievement, future
growth and prospectus, McKinney’s 7s models analysis, with special reference to organization
under study and SWOT analysis and also it covers summary of financial performance and the
learning experience gained during in-plant training.

Primary source of data collection includes interaction with employees of company’s annual
reports, journals, websites and induction manual of company study period were 2 weeks
01/07/2017 to 15/07/2017.

a. He study is restricted to the information provide by this company employees the websites,
annual report and some literatures.

b. The period of study is limited to 2 weeks.

c. Company gives privacy to maintain secrecy of some information and as such confidential was
not disclosed.

d. Financial statements do not give complete data of entire financial aspects.

1.1 INTRODUCTION

1.2 NEED OF THE STUDY

1.2.1 OBJECTIVES OF THE STUDY

1.2.2 SCOPE OF THE STUDY

1.2.3 RESEARCH METHODOLOGY

1.2.4 LIMITATION OF THE STUDy

1.2.5 CHAPTER SCHEME

1.1 INTRODUCTION

This report represents a brief study on Edible Oil industry which is operating in Chitradurga,
Karnataka about its advantages and problems. This report also aims at functional areas of
company and their role in building and shaping companies growth. The development and its
problems are recognized through the past and present performance of the company by means of
different sources.

The idea behind project is to study organizational activities and their performance,
problems, strength, weakness at current position. The information and data about company is
collected within the boundaries of Chitradurga District. The main motive behind this project is to
know the functional roles of the company and assist them to know their weakness, problems and
opportunities that are existing to the company.

This report also gives brief account on consumer preference and awareness level of
company’s product “KOF” and company’s current position in the market. The research approach
has been based on the considerations of the company growth prospects with respect to increasing
its present & commanding a significant market share. The idea behind this project is to provide
the necessary inputs for the company to adopt marketing strategies so as to position itself as a
mainstream oil company in the state.
 1.2 NEED OF THE STUDY

The in plant training report is the outcome of a study undertaken in partial fulfilment of the
master in M.B.A course during the 3rd semester of the course each student is required to work as
a trainee in an organization practical knowledge and submit a report of the same in order to full
fill this requirement a study of Karnataka Oil Federation was carried out.

1.2.1 OBJECTIVES OF THE STUDY

 To study the complete structure and history of KOF

 To know the theoretical background of the organization.

 To examine insight into the organization functional areas activity.

 To analyze the performance of the organization through Mckensy’s-7’s analysis and give a
possible suggestion.

 To examine the complete comprehensively evaluation throughout SWOT analysis in the

particular company organization

1.2.2 SCOPE OF THE STUDY

The present study is made to the study core components of this organisation and to know
the product moment of KOF oil products. The study was conducted in the Chitradurga for the
period of 2 weeks. It is indented to provide information about sales analysis towards the KOF oil
products.

1.2.3 RESEARCH METHODOLOGY OF THE STUDY

 The project work is undertaken by using both primary data and secondary data the discussion
interview and observation helped the investigation to generate primary data and secondary data
the source of secondary data company reports stores records etc.

1.2.4 LIMITATION OF THE STUDY

 The first limitation of the study is it undertaken for academic purpose only.

 It could not go deep into the topic because of time constraints.

 The study is confined to KOF’s Regional Oilseeds Growers’ Co-op. Societies’ Union Ltd.

1.2.5 CHAPTER SCHEME:

Chapter-1 Research design

This chapter includes introduction, scope of the study, objectives, research
methodology, problem of the study, limitation of the study & cauterization.

Chapter-2 Industry profile

This chapter consistence introduction to the industry, history of the industry,
present and future status of the industry, overview of the industry.

Chapter-3 Company profile

This chapter includes profile of the company, objectives, quality policy and
products being produced at present, infrastructure facilities, present competitors
.
Chapter-4 Analysis of McKinney’s 7’s model
This chapter deals with McKinney’s 7’s model frame work of the organization i.e.
strategy, system, skill, style, &shared values.
 Chapter-5 SWOT analysis
This chapter is focused on strengths, weaknesses, opportunities, threats
of the company.

Chapter-6 Findings, Suggestions & Conclusion

This chapter focused on findings, suggestion & conclusion of the overall
organization.

CHAPTER 2

2.1 INTRODUCTION

2.2 BRIEF PROFILE OF INDUSTRY

2.3 PRODUCT PROFILE

2.4 COMPETETORS PROFILE

INDUSTRY PROFILE

2.1 INTRODUCTION
India is amongst the largest producer and consumer of vegetable oils. It was self sufficient in vegetable
oils in the 1950s; however, by the 1960s the domestic demand-supply equilibrium almost vanished.
The turning point came in 1988, when the country faced shortfall of 2 million tones (mt) of oil,
necessitating imports worth $1bn. Alarmed at this situation, government made a concerted effort to
make oilseeds more attractive to growers, through a combination of specialized extension campaigns
including the high-profile Technology Mission. As a result, the country became almost self-sufficient
(maximum 98% in 1992-93 and 1993-94) in edible oil.
In early 90s, the high prices of oils encouraged the entry of more firms into the business,
including some blue chips, in a major way. The result was a substantial expansion of processing
capacity and an unprecedented increase in oilseeds production, in particular soybeans, by over
70 per cent in six years. However, the liberalization of Indian economy at this point of time
fundamentally changed the import regime of India’s edible oil particularly in 1994 when as part
of its obligations under WTO rules; India eliminated the state monopoly on imports and placed
 the imports under a privatized open general license (OGL) system. Under the new rules, India
also agreed to eliminate import quotas and placed upper bound limits on tariff levels.
These changes made the rules governing edible oil import more transparent
and more responsive to market forces. Imports of edible oil which were 1.5
million tones in 1986-87 gradually declined to 0.1 million tones in 1992-93
but have now touched 4.3 million tones (2002-03). Population pressure
coupled with better standard of living, low oilseeds production due to
aberrant weather for several years, and liberalization of import-export
policy, are the causes behind such an import scenario. The corresponding
export earnings however, have been much lower due to depressed prices in
the international market.
Nature of Business;

KOF regional oil seeds have good nature of this company have financial activity includes the production and
purchase, distribution of the products, it deals goods and services of this industry. It implies regulatory
transactions of this industry.

 Business is an economic activity

 It includes the activities of production or purchase and distribution
 It deals in goods and services
 It implies regulatory of transactions.
 It aims at earning profits through the satisfaction of human wants
 It involves risk, it is not certain that adequate profit will be earned.
 It creates utilities.
 It serve a social purpose by improving people’s standard of living.
 2.2 BRIEF PROFILE ON INDUSTRY

India’s Area, production and productivity of oilseeds

Oilseed crops account for 14.1% of the gross cropped area in India. Their area,
production and productivity (yield) in India have registered steady increase since the inception
of Technology Mission on Oilseeds and Pulses (TMOP) in April 1986 and reached the peak of
26.23 million ha, 24.75 million t and 0.94 t/ha in 1998-99, respectively. Nevertheless, area,
production and yield (productivity) of oilseeds in India have been fluctuating because of several
biotic and abiotic stresses affecting the crops. Another important factor contributing to
insufficient domestic production/ productivity of oilseeds has been the small area under
irrigation, which has increased by merely 3% in the last one decade from 23.2% to 26.3%.
India's domestic price support program me, which has often favored production of crops that
compete for area with oilseeds, is also responsible for such a scenario.

THE IMPORT OF EDIBLE OILS

Trade in oilseeds has been completely deregulated within a short span of time and oils
are now freely importable with relatively low incidence of custom duties. The impact of this
liberalization on the import of edible oil has been phenomenal and from 0.10 million tones in
1992-93 the country’s import has reached to 4.3 million tones in 2002-03. The share of bills for
the import of edible oil in the total agricultural imports has ranged from 6% to 52% during 1991-
92 to 2010-11. Almost four out of 20 years, the country has spent 50% of the total expenses on
agricultural imports for the import of edible oil. The dramatic decrease in self-sufficiency in the
last 5 years is a clean indication that globalization has already made an impact of far reaching
consequences in this sector. The country was almost self-sufficient in edible oils during 1991-92
to 1994-95 when the sufficiency level was in the range of 95 to 98 %. However, gradually it has
declined to about 53% in 2010-11.
Importance of edible oils in the country’s economy

Oilseeds and edible oils are two of the most sensitive essential commodities. India is one of the largest
producers of oilseeds in the world and this sector occupies an important position in the agricultural
economy and accounting for the estimated production of 24.35 million tonnes of nine cultivated oilseeds
during the year 2004-05. India contributes about 7-8% of the world oilseeds production. Export of oil meals,
oilseeds and minor oils has increased from 3.36 million Tons in the financial year 2004-05 to 4.98 (Prov.)
million tons in the financial year 2005-06. In terms of value, realization has gone up from Rs. 4613 crores
to Rs.5299 crores. India accounted for about 6.4% of world oil meal export.

India’s Area, production and productivity of oilseeds

Oilseed crops account for 14.1% of the gross cropped area in India. Their area, production and productivity
(yield) in India have registered steady increase since the inception of Technology Mission on Oilseeds and
Pulses (TMOP) in April 1986 and reached the peak of 26.23 million ha, 24.75 million t and 0.94 t/ha in
1998-99, respectively. Nevertheless, area, production and yield (productivity) of oilseeds in India have been
fluctuating because of several biotic and a bioticss stresses affecting the crops. Another important factor
contributing to insufficient domestic production/ productivity of oilseeds has been the small area under
irrigation, which has increased by merely 3% in the last one decade from 23.2% to 26.3%. India's domestic
price support program, which has often favored production of crops that compete for area with oilseeds, is
also responsible for such a scenario

Figures pertaining to estimated production of major cultivated oilseeds, availability of edible oils from all
domestic sources and consumption of edible oils (from Domestic and Import Sources) during the last few
years are as under: -

DEMAND PROJECTIONS FOR INDIA’S EDIBLE OIL

By 2011, India’s total requirement of vegetable oils for the projected population of 1.25 billion at
the projected per capita consumption of about 15 kg/annum is expected to be around 19.0
million tones, which is roughly equivalent to 57.0 million t of oilseeds. This is a big challenge to
achieve in a short time of six years from now, considering the fact that the per capita edible oils
consumption has gone up from a mere 4.5 kg in 1981-82 to 9.5 kg in 2009-10.

Types of Oils commonly in use in India

India is fortunate in having a wide range of oilseeds crops grown in its different agro climatic
zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed, nigerseed/castor are the major
traditionally cultivated oilseeds. Soybean and sunflower have also assumed importance in recent
years. Coconut is most important amongst the plantation crops. Efforts are being made to grow oil
palm in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andaman & Nicobar
Islands. Among the non-conventional oils, rice bran oil and cottonseed oil are the most important.
In addition, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also
a significant source of oils.

Consumption Pattern of Edible Oils in India

India is a vast country and inhabitants of several of its regions have developed specific preference for
certain oils largely depending upon the oils available in the region. For example, people in the South and
West prefer groundnut oil while those in the East and North use mustard/rapeseed oil. Likewise several
pockets in the South have a preference for coconut and sesame oil. Inhabitants of northern plain are
basically hard fat consumers and therefore, prefer Vanaspati, a term used to denote a partially hydrogenated
edible oil mixture. Vanaspati has an important role in our edible oil economy. Its production is about 1.2
million tonnes annually. It has around 10% share of the edible oil market. It has the ability to absorb a
heterogeneous variety of oils, which do not generally find direct marketing opportunities because of
consumers’ preference for traditional oils such as groundnut oil, mustard oil, sesame oil etc. For example,
newer oils like Soybean, sunflower, rice bran and cottonseed and oils from oilseeds of tree and forest origin
had found their way to the edible pool largely through vanaspatisss route. Of late, things have changed.
Through technological means such as refining, bleaching and de-odourisation, all oils have been rendered
practically colourless, odourless and tasteless and, therefore, have become easily interchangeable in the
kitchen. Newer oils which were not known before they have entered the kitchen, like those of cottonseed,
sunflower, palm oil or its liquid fraction (palmolein), Soyabean and rice bran. These tend to have a strong
and distinctive test preferred by most traditional customers. The share of raw oil, refined oil and vanaspati
in the total edible oil market is estimated at 50%, 55% and 10% respectively.
Government of India in mid 1980's started the "Technology Mission on Oilseed and Pulses" (TMOP) in
order to enhance productivity in oilseeds and make India self sufficient in edible oil. On 22.8.1984
Government of Karnataka approved the implementation of Nation Dairy Development Board's (NDDB)
project "Restructuring Edible Oil& oilseeds Production and marketing' in Karnataka keeping in mind the
objectives laid down in the TMOP.

The Karnataka Co-operative Oilseeds Growers Federation Limited (KOF), the Agency Entrusted with
implementation of the Project, Was registered on 26th October 1984, under the Karnataka Co-operative
Societies Act. The project, which was inspired by the Anand Model of Milk Co-operatives, is designed to
create an integrated Co-partite System of production, procurement, processing of Oilseeds and marketing of
edible oil and its bi-products.

were organized by making the oilseeds growers as members in turn these primary co-operative societies
became the members of the apex body at the state level till June 1990.

During the second phase of the project the structure has been re-organized to a three tier
cooperative structure with the village level Oilseeds Growers' Cooperative societies affiliated to
Regional Unions organized at the district level and in turn the Regional Unions have been
affiliated to the state level Federation

Government of India’s fiscal incentives for motivating the farmer to shift to oilseed
cultivation
During the early 1990s, Minimum Support Prices (MSPs) for food grains were kept in
check relative to oilseeds and the government controlled import monopoly dramatically lowered
oil imports. This contributed to a sharp improvement in domestic oilseed prices relative to
competing crops and increased the oilseed production by 70% between 1987-88 and 1994-95.
However, after mid-1990s, oilseed prices declined relative to other crops, mainly due to the
increased domestic oilseed supplies and liberalization of edible oil imports initiated in 1994.
MSP level for food grains were raised more than for oilseeds since the mid-l990s. As a result,
increasingly favourable returns from rice and wheat have drawn area away from oilseeds,
lowering oilseed production. Since 2010-11, however, the MSP of the major edible oilseeds have
been moving upward more decisively, intending to lure the growers towards the oilseed crops.

India is the fourth largest oil seed producing country in world, next to USA, China & Brazil
harvesting about 25 million Tons of oil seed, against the world production of 250 million ton per
annum.

Many verities of oilseeds along with the oilseeds originated from trees are cultivated in India
like soybean, Groundnuts, sunflowers Rapeseed, sesame seed, linseed palm, Kernel. The Edible
oil Industries of country comprises of 50000 expellers, 600 solvent Extraction Plants &300
vegetable oil refineries.

Edible Oils occupies a distinct position in Indian economy as it provides jobs for millions of
people & India mainly dependent on Rain to produce oil seed crops.

Indian’s more than one billion people annually consume about 11.5 million tones of oils. Since
Indian oil seeds crop is highly rain dependent and harvesting is mainly done in the months of
March or April.

Background

Edible oil processing consists of three operations: crushing and expelling (separating oil
from the solids), solvent extraction (to chemically remove residual oil from the oilcake solids),
and oil refining. In many countries, these three separate processing operations are conducted by
one vertically integrated plant. In India, however, only a small share of oilseed production
undergoes solvent extraction and oil refining. Instead, India’s oilseeds processing sector is made
up of the three groups viz Ghanis, solvent extractors and oil refiners engaged separately.

Edible oils constitute an important component of Indian households’ expenditure on food.

According to NSS 60th Round (January-June 2004), average monthly per capita consumption
expenditure (MPCE) of edible oil in food was 8.2% in rural India, and 8.2% in urban India. The
share of edible oil has increased in successive NSSO surveys.

Size

India is world’s third largest edible oil economy, after China and US. India’s annual
consumption is around 10 million tones vis-à-vis China’s 14.5 million tones. However, India’s
per capita consumption at 10.2 kgs per annum is considerably lower compared to global
standards.

India is also a leading producer of oilseeds, contributing 7-8% of world oilseed production.
India is estimated to account for around 6% of the world’s production of edible oils. Though it
 has the largest cultivated area under oilseeds in the world, crop yields tantamount to only 50-
60% of the world’s average.

India is the fifth largest producer of oilseeds in the world, behind US, China, Brazil, and
Argentina. Since 1995, Indian share in world production of oilseeds has been around 8-10%.

Structural Characteristics

 Broadly, edible oil/fat products can be categorized into four categories, vegetable refined oil,
hydrogenated oil (vanaspati), bakery fats/margarine, and de-oiled cakes.
 The Indian edible oil industry can be classified into the following segments. Ghanis (over one
lakh units), small-scale expellers (15,000 mills), solvent extractors (600 units), oil refiners (400
units) and vanaspati manufacturers (204 units).

 Oil mills crush oil seeds and extract oil, 70% of which is sold in the open market. The remaining
30% is refined and sold as branded oil. After the extraction of oil, residual seeds are processed
further by solvent extractors, to make solvent-extracted oil. Most of the solvent extracted oil is
used to make ‘vanaspati'.

 The Indian edible oil industry is highly fragmented with a large number of small scale producers.
The ghanis belong to the SSI segment and usually serve the rural markets.

 Solvent extractors belong to the organised segment and are also the second largest after the SSI
segment, in the domestic edible oil industry. They use modern technology to process low oil &
high meal seeds (eg.soyabean, cottonseed) into edible oil and de-oiled cake.

 Oil refining also belongs to the organised sector and has recorded rapid growth in recent times.
Refiners generally refine both expeller oils and solvent extracted oils.

 Vanaspati is made by hydrogenation of refined oil to vegetable shortening or spread and is

similar to the milk product ghee and absorbs around 10% of the total edible oil supply in India.

 The production of edible oils in India is dependent on the production and availability of oilseeds.
While oilseeds production increased from 10.83 million tones (mt) in 1985-86 to 24.75 mt in
1998-99, yield per hectare increased from 570 kg to 944 kg. During 2007 to 2011, oilseed
output stagnated and also declined. As oilseeds are mostly sown in the non-irrigated regions of
 the country (viz, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh), its production suffers
from high dependence on the monsoon.

 Moreover, the raw material costs account for over 92% of the total cost of sales due to volatile
prices of oilseeds. Besides the increase in raw material prices cannot be passed on entirely to the
consumers, edible oil prices being governed by trends in international prices due to substantial
imports.

 Therefore the edible oil industry is characterised by very low profit margins, which is a
manifestation of a variety of factors, the most important of all being availability of oilseeds.

POLICY
 In order to increase the domestic supply of oil seeds, the government has been frequently
freezing the MSP for wheat and rice while increasing the MSP for oil seeds, thereby prompting a
diversification from wheat-rice to oil seeds. This is intended to improve the supply of oil seeds.
However, despite these measures, the demand-supply gap is likely to continue in the medium
term. Again this does not push up prices, due to availability of low priced imports, as edible oil
is the common man’s utility item.
 Free imports (since 1994) have further lowered the entry barrier to the industry as crude or
refined oil can be imported, packed and distributed doing away with the need of having
manufacturing facility in the domestic market.

Customs tariff on edible oil continues to be the most important and dynamic area of
government intervention. India adopted a modified tariff schedule for agricultural products in
March 2000. The tariff bindings, subsequent to revision in 1996 and renegotiations within the
WTO in 1999, retain the overall structure notified after the Uruguay Round: 100% for
commodities, 150% for processed products, and 300% for edible oils. Departures from this
pattern are mainly with respect of tariff lines that were negotiated as special cases. India's bound
rates for edible oil are as high as 300% ad valorem, except for 45% on soybean oil, and 75% for
rapeseed oil. On all other oils, the GoI can raise the level of customs duty up to 300%.
 OUTLOOK
 The country’s consumption places India behind only China and the European Union in total
edible oil consumption. The growth in consumption of edible oil has been driven by increased
population and growing incomes.
 With its large population and continued strong economic growth, India is likely to register
strong gains in total and per-capita edible oil consumption in the medium term. Per capita
consumption is expected to increase to 11 kgs in FY2011 and 11.3 kgs in FY2012.

 Production is expected to increase at a slower rate during OY2012 mainly because of an

expected decline in India’s oilseeds and edible oil production. India’s production of vegetable
oils has been stagnating except for a rise in rapeseed oil. According to the Solvent Extractors
Association of India (SEA), India’s vegetable oil production is expected to decline 4.4% during
OY2007 to around 6.8 mt.

 By 2010, India’s total requirement of edible oils for the projected population of 1.25 billion at
the projected per capita consumption of about 15 kg per annum is expected to be around 19 mt,
which is equivalent to an estimated 57 mt of oilseeds.

 The industry has to contend with increasing competition from imports, the rising cost of oil seeds and
the expanding demand-supply gap. Since the production of oil seeds is heavily dependent on monsoons,
around 40% of the demand for edible oils within the country has to be met by imports which may
continue.

MARKET
 India accounts for 9.3 per cent of world oilseed production. It has the world's fourth largest
edible oil economy. Yet, about 43 per cent of edible oil available in India is imported.
 India ranked as the world's largest importer of edible oils, displacing China. The bulk of edible
oil India imports under the Open General License (OGL) are RBD palmolein of Malaysian and
Indonesian origin.
 In most parts of the world, import duty on oilseeds is lower than that on oils. But, in India, it is
higher: 40 per cent. That is why no import of oilseeds or oil-bearing material has taken place in
India. The industry wants the duty to be lowered from the present 40 per cent to 5 per cent.
  Edible oils prices in the Indian market have crashed due to large imports by multinational
trading houses.
 The edible oils industry is one sector in India that will see considerable reform in the
foreseeable future.
 The government has banned export of edible oil for one year to check rising domestic prices
and control inflation. The ban will be in place till March 16, 2011.
Edible oil has a weightage of 2.76% in the wholesale price index (WPI) - higher than cement
(1.73%), wheat (1.38%) and rice (2.45%).

2.3 PRODUCT PROFILE

This company produce product called SAFAL OIL(double filter groundnut oil),
SUNGOLD(refined sunflower oil I), SUNSAFAL OIL(refined sun flower oil II), SAFAL
HEALTH (refined rise brain oil), SUGUNA(soya refined oil), SAFAL(coconut oil),
SWAGATH(RBDP palm oil), where oil is extracted from different seeds and crops and
packaging is done by giving brand name called which is directly sold to whole sellers and
retailers through supply agents and from them it will reach to final users as consumers.

Safal oil.

This is one of the most commonly consumed oil in India, particularly in the rural areas. The
filtered oils are nutritionally superior they often contain toic compounds or others adulterants. This oil is
suitable for all types of cooking-frying, grilling seasoning etc. Safal Double Filtered Groundnut oil is
produced from selected farm fresh Groundnuts in a very hygienic condition without loss of any natural
vitamins.
The oil contains all natural vitamins and rich in taste having traditional importance called as king
of oils. Safal Double Filtered Groundnut Oil is well nutritional oil preferred by all age groups / households
and most popular selling Karnataka.
Safal Double Filtered Groundnut Oil is available in consumer packs like ½ Ltr / 1 Ltr pouch /
Pet Bottle, 5 Ltr Jerry can and Bulk packing of 15 Ltr / 15 kg Tins / 100 kgs HDPE Barrels for usage by
Hotels, canteens, caterers, sweet stalls etc.
.Sungold oil.
It is popular cooking oil, available under many brand names. Extracted from the seeds of the sunflower,
sunflower oil is good for all-purpose oil cnnot be used as the only cooking oil Sungold Refined Sunflower
Oil is arrived from original Sunflower seed Oil, light in colour without having odor and wax. The MUFA
(Mono Unsaturated Fatty Acid) in the oil helps in maintaining the cholesterol level in the human blood and
helps in protecting health from heart related diseases. The oil is rich with “C” and “E” vitamins naturally
available in the Sunflower oil and most popular / widely accepted oil in refined oil range.

The Sun gold Refined Sunflower Oil is pure and the only oil with AGMARK certification, available at most
reasonable price. The Sun gold Refined Sunflower Oil is most preferred Refined oil by households and bulk
users like Hotels, Canteens, Sweet stalls, Caterers etc..for its reusable quality without having any unlinked
odor.

Sungold Refined Sunflower Oil is available in consumer packs like ½ Ltr pouch / 1 Ltr pouch / Pet Bottle, 5
Ltr Jerry cans / Pet jars and Bulk packing of 15 Ltr / 15 kg Tins / 100 kgs HDPE Barrels.

Sunsafal oil.

Sunsafal refined sunflower oil is processed from good quality Sunflower oil and made available to the
consumers at very economical price. The oil does not have wax, odor and light in colour suit to all the
segments of consumers like households Hotels, canteens, sweet stalls, caterers etc.

Sunsafal refined sunflower oil is available in consumer packs like ½ ltr pouch/ 1 ltr pouch /5 ltr jerry
cans/pet jars and bulk packing of 15 ltr / 15 kg tins / 100 kgs Barrels.
Swagath RBD Oil.

Swagath RBD palmolien is good in quality and arrived out of imported palmolien does not have any odor.
Wax and having more shelf life for the fried dishes. The RBD palmolien helps in maintaining low
cholesterol level in the blood and economically priced reaching all the income groups customers and most
preferred by the commercial users like Hotels caterers. Bakeries condiments / confectionary units etc

Swagath RBD palmolien is available in consumer’s packs like 200 ml pouch / 1 ltr pouch and bulk packing
of 15 ltr / 15 kg tins / 100 kgs HDPE Barrels.

Suguna soya bean Oil.

Refined soya bean oil is rich nutrition and most popular / widely used oil in western countries. Soya bean oil
is extracted from quality soya bean seeds and further processed to reduce the colour and fishy odor which is
inherent in the soya bean. The suguna refined soyabean oil is rich in nutrition with linoleic acid contents in
the oil which is good for health.

The refined soya bean oil is best priced in the refined oil range widely accepted by consumers and bulk users
preferably by modern world Hotels, fast food canters, pizza corners, chines restaurants etc

Safal coconut oil.

Safal pure coconut oil is processed from selected copra arrived out well grown coconuts in south Indian
coastal belts, having pleasing flavour and aroma finds extensive use in food because of its unique
characteristics safal pure coconut oil is light in colour. Ideal for deep frying, better shell life for fried
products ideal confectionary fat, gives better taste for traditional rich coastal foods coconut oil has attained
prominence right from the age of vedas in day to day usage. Safal pure coconut oil oil is available in
economy range bulk packs for edible / cocking range like 1 ltr / 1 kg jar, 5 kg jar, 15 kg tin / jar also
available in various small pack sizes like 50 ml / 100 ml / 200 ml / 500 ml bottle for convenience in usage.

This product is having good business in regional areas with comparative products like Gemini, priya,
gold winner, sun shud oil in market, price stability is maintained while considering income level and
consumer preference so that consumers can afford it with low price.

This company is having good machineries of productions to produce quality products so that
consumer prefers this product for its quality and price. This product has brand alertness through newspapers
and local TV. Channels advertisements.

Product adopts simple marketing strategies and a single line distribution, channels which helps
product to move from company to whole sellers and retailers through whom product can have fair
computation among other brands and can become source for consumers to have good product fulfil their
demands and needs.

This company is having good machineries of productions to produce quality products so

that consumer prefers this product for its quality and price. This product has brand alertness
through newspapers and local TV. Channels advertisements.

Product adopts simple marketing strategies and a single line distribution channels which
helps product to move from company to whole sellers and retailers through whom product can
have fair computation among other brands and can become a source for consumers to have good
product to fulfil their demands and needs.

2.4 COMPITETORS INFORMATION OR PROFILE

 GOLD WINNER OIL

 GEMINI OIL

 SUN SHUD OIL

 SUN PURE
 DHARA

CHAPTER 3

COMPANY PROFILE

3.1 INTRODUCTION

3.2 COMPANY VISION AND MISSION

3.3 COMPANY OBJECTIVES

3.4 AREA OF OPERATION

3.5 INFRASTRUCTURE CREATED

3.1 INTRODUCTION

The Karnataka Co-operative Oilseeds Growers Federation Limited, Bangalore was registered on
26th October, 1984 to implement the project "restructuring of edible oil and oilseeds production
and Marketing in Karnataka". The said project was structured Anand Model of Milk Co.
Operative with the objects to increase oilseeds production, procurement and processing of
oilseeds and create the market for edible oils and its by-products.

The project was initially envisaged to be implemented with a two-tier structure and accordingly,
primary Oilseeds Growers' co. Operative Societies at village level were registered from time to
time and got affiliated to the Federation at the State level. To provide the better services to the
oilseeds growers in a short time, the structure was changed from two tire to three-tier during the
month of June 1990 with the formation of three Regional Oil Union at Hospet, Raichur and
Hubli respectively.
 Accordingly, the Regional Oilseeds Growers Co.operative Societies Union Ltd., Chitradurga
(Earlier it was called as Hospet Union) was registered on 30th June, 1990 with its area of
operation extending to three districts of Bellary, Chitradurga,Tumkur and Davangere.
Consequent to this all village Oilseeds Growers Co.operative Societies formed under the project
area were affiliated to the Union which in turn was affiliated to the Federation. During August,
1998 Davanagere was constituted as a new district comprising of taluks from Bellary,
Chitradurga , Shimoga districts; thereby taking the number of districts in the project are is four.
As on date 130 Oilseeds Growers' Co-op. Societies are affiliated to the Union.

Background

Edible oil processing consists of three operations: crushing and expelling (separating oil from
the solids), solvent extraction (to chemically remove residual oil from the oilcake solids), and oil refining. In
many countries, these three separate processing operations are conducted by one vertically integrated plant.
In India however only a small share of oilseed production undergoes solvent extractors and oil refiners
engaged separately?

Edible oil constitute an important component of India household’s expenditure on food. According to NSS
60th Round (January-June, 2004), average monthly per capita consumption expenditure (MPCE) of edible oil
in food was 8.2% in rural India, and 8.2% in urban India. The share of edible oil has increased in successive
NSSO surveys.

 The Area Agronomic & Training Centre (AATC) was established during 1986, in an area of 93.37
acres uncultivated land provided by the Govt. of Karnataka (Department of Agriculture), on long
lease for a period of 30 years @ Rs 100 / acre / annum.

 The initial infrastructure viz: farm development, office / quarters buildings, canteen, dormitory, guest
house & storage go downs, cattle shed, farm equipment’s including tractor & bullocks etc. were
funded by the NDDB, under the Restructuring of Oilseed & Vegetable Oil Project.
  The Farm is located 8 Kim’s away from Haveri town and 1 Km from Haveri - Hangal / Sirsi
(Hosahally Cross) State Highway towards Kerimathihally village.

 The Soil is of mainly light – red loamy / shallow type requiring frequent irrigation. The water is
saline with high fluoride content. The water table is 350-400 Ft. depth. The average rainfall in the
region ranges between 400 – 500 mm and it is in the border of transition rainfall zone.

Nature of Business;

KOF regional oil seeds have good nature of this company have financial activity includes the production and
purchase, distribution of the products, it deals goods and services of this industry. It implies regulatory
transactions of this industry.

 Business is an economic activity

 It includes the activities of production or purchase and distribution
 It deals in goods and services
 It implies regulatory of transactions.
 It aims at earning profits through the satisfaction of human wants
 It involves risk, it is not certain that adequate profit will be earned.
 It creates utilities.
 It serves a social purpose by improving people’s standard of living

3.2 COMPANY VISION AND MISSION

VISION:

To become world-class oil producer committed to enhancing stakeholder value.

MISSION:

Our mission reflects our core values and beliefs to which we practice and abide-by everyday: We
strive for survival in our markets through our promise of quality, recognition and reputation. We strive for
development and progression through good faith, fairness and innovation. Through our core values to the
products we provide. We promise to enrich health and create harmony amongst ourselves, our customers and
to the environment that we live in.
 3.3 COMPANY OBJECTIVES:

 Organize and supervision of the Primary Oilseeds Growers Co.op. Societies.

 To provide technical guidance to the Oilseed growers.

 Increase the oilseeds production by undertaking improved seed production activities through
farmers.

 Distribution of improved variety seeds, Agricultural Implements and other inputs, Fertilizers,
Chemicals & Gypsum.

 Conducting of demonstrations.

 Procurement of oilseeds from growers by providing fair prices.

 Other agricultural activities which are useful to the farmers.

 Arranging the trainings for farmers and Board Members of the Society.

 Procurement of oilseeds with coordination of NAFED under Price Support Scheme of Govt.

 Processing and Marketing of Oilseeds and Edible Oils in consumer packs.

In this way Union is providing the services to the Oilseeds Growers Co-op. Societies at village
level

3.4 AREA OF OPERATION:

The Union is having its Head Office at Chitradurga and different District Offices at
Davangere,Hospet (Bellary Dist), Chitradurga and Tumkur. The details of OGCS affiliated to
the Union are as follows.

Sl.No District Taluk’s OGCS Villages Members Oilseed Area (in Hectors)

Covered

01 Chitradurga 04 20 200 9,524 29,140

02 Davanagere 02 05 49 2,295 1,865

03 Bellary 05 35 226 15,123 21,245

04 Tumkur 06 31 317 9,704 33,666

Total 17 91 792 35,646 85,916

 provide the better services to the Oilseeds Growers’ Co.operative Societies (OGCS) at
village level and to fulfil the objectives of the Union, the Union approached the Karnataka Industrial
Area Development Board, Davangere ( KIADB) for allotment of land, accordingly the KIADB has
allotted the land to tune of 8753 Sq mtrs at Plot No. 74/A, Kelgote Industrial Area, Chitradurga. In
that plot the Union has constructed two godowns to operate sowing seeds activities under the 50%
subsidy from Department of Agriculture under ISOPAM Project and set up independent Oil Packaging
Station in its own funds at the cost of Rs. 185 lakhs to operate the Consumer Marketing activities of
the Union under the brands of SAFAL, SUNGOLD & SWAGAT. Also, recently the Union has
purchased 0.5 acres of land including one godowns from KSFC in the tender process

3.5 INFRASTRUCTURE CREATED

To provide the better services to the Oilseeds Growers’ Cooperative Societies (OGCS) at
village level and to fulfil the objectives of the Union, the Union approached the Karnataka
Industrial Area Development Board, Davangere ( KIADB) for allotment of land, accordingly
the KIADB has allotted the land to tune of 8753 Sq mtrs at Plot No. 74/A, Kelgote Industrial
Area, Chitradurga. In that plot the Union has constructed two godowns to operate sowing seeds
activities under the 50% subsidy from Department of Agriculture under ISOPAM Project and set
up independent Oil Packaging Station in its own funds at the cost of Rs. 185 lakhs to operate the
Consumer Marketing activities of the Union under the brands of SAFAL, SUNGOLD &
SWAGAT. Also, recently the Union has purchased 0.5 acres of land including one godown from
KSFC in the tender process.

CHAPTER-4
MCKINSEY’S 7’s MODEL
4.1 INTRODUCTION
4.2 STRUCTURE
4.3 STRATEGY
4.4 SYSTEMS
4.5 STAFF
4.6 SKILLS
4.7 STYLE
4.8 SHARED VALUES
4.1 INTRODUCTION:

This model is a new approach to management theory. It is developed by “Mckinsey’s and Co”. This
approach has gained its popularity very much. Partly it became basis for the research behind the two
best selling books, “The Art of Japanese Management” and “In search of Excellence”.

Strategy is a systematic action and allocation of resources to achieve company’s aims and goals.
Structure is the arrangement of functional heads and their authority or responsibility in an
organization. System is the procedures and process such as information systems, manufacturing
process, budgeting and control process of an organization. Style is the way in which management
behaves and collectively spends its time to achieve organizational goals. Staffs are the people in the
enterprise and their socialization into the organizational culture. Shared Values are the values shared
by the members of the organization. It is also called as Superior Goals. Skills are the distinctive
capabilities of an enterprise. Capabilities of an organization are the real strength and weakness of an
organization.

The outstanding feature of the 7’S model is that, it has been tested extensively by McKinney’s
Consultants in their studies of many companies. At the same time, this frame work has been used by
the business schools of Harvard and Stanford Universities. Thus theory and practical seem to be
support each other in the study of management. This model also supports the five managerial
functions i.e. Planning, Organizing, Staffing, Leading/Directing and Controlling.
By using the word Shared Values, the 7’S theorists emphasize that, goal statements are very
important in determining the destiny of the enterprise. They also point out that, values must be
shared by the management and its members.

Identifying key aspects of the management system and showing the inter-relatedness of the
variables is a positive contribution to management theory – A Simple Theory of Effective
Management.

According to this model there are some basic dimensions which respect to the core of
managerial activities these are act as levers which executive use. The organization of the model has
concerned the managerial variables with words being with the letters so as to increase the
communication power of the model the 7s diagram illustrate the multiplicity that defined an
organizations ability to change. The theory helped managers to think how company should improve.
It says that it is not just a matter if devising a new strategy and following nether it through nor it is a
matter of setting up a new system and letting them generate impotents. To be effectives their
organization must have a high degree of internal alignment amongst all the 7s, all 7s are interrelated
and a change in one has ripple effect on all the others. It’s impossible to make progress on all. Thus
to improve on all the seven element at the same time there is no starting point or implied hierarchy.
Different factors may drive the business in any one organization.

MCKENSEY’S 7s MODEL
Framework of McKinney’s 7-S Model:

According to this model there are seven basic dimensions which represent the core of managerial
activities. The originators of the model have coined the model variables with words beginning with
the letter ‘S’ so as to increase the communication power of the model. The 7 ‘S’ are,

 Structure: The way organizations unit relate to each other; centralized, functional, divisions
(top down), decentralized ( the trend in larger organizations), matrix, network, holding, etc.,
 Strategy: Plans for the allocation of firm’s scarce resources, overtime, to reach identified goals;
Environment, competition, customers.
 System: The procedures, processes, and routines that characterize how important work is to be
done are financial systems, hiring, promotion and performance appraisal systems, and
information systems.
 Style: Cultural style of the organization and how key managers behave in achieving
organization’s goals. Staff: Numbers and types of personnel within the organization. Promoters
of the company and qualities of the key staff.
 Skill: Distinctive capabilities of personnel or of the organization as a whole.
 Shared Values: The interconnecting centre of McKinsey’s model is shared values. What does
the organization stands for and what it believes in central beliefs and attitude.

Objective of the Model

Helps to analyze how well an organization is positioned to achieve its intended objective.
  Improve the performance of a company.
 Examine the likely effects of future changes within a company
 Align departments and processes during a merger or acquisition
 Determine how best to implement a proposed strategy
 The basic premise of the model is that there are seven internal aspects of an organization that
need to be aligned if it is to be successful.

4.2. STRUCTURE:
Structure refers to the relatively more durable organizational arrangements and
relationship. It prescribes the formal relationship among various positions activities arrangements
about relating relationship, how an organizational members is to communicate with the other, what
role he is to perform and what rules and procedure exist to guide the various activities performed by
member of all part of the organizations. It shows how delegation of authority and responsibility top
to bottom and utilize.

Organization Structure

One of the most challenging tasks of a business may be organizing the people who perform its work.
A business may begin with one person doing all the necessary tasks. As the business becomes
successful and grows, however, there is generally more work, and more people are needed to
perform various tasks. Through this division of work, individuals can become specialists at a
specific job. Because there are several people often in different locations working toward a common
objective, there must be a plan showing how the work will be organized.

The plan for the systematic arrangement of work is the organization structure. Organization
structure is comprised of functions, relationships, responsibilities, authorities and communications
of individuals within each department. The organizational chart has been described as looking like
a tree, with the roots representing the president and the board of directors, while the branches
symbolize the various departments and the leaves depict the staff workers.

Organization structure refers to the relativity more durable organizational arrangements and
relationships. It’s prescribes the formal relationship among various position and activities.
Arrangement about relating relationships, how an organizational members is communicate with the
others, what role he is to perform and what rules and procedures exists to guide the various
activities performed by members of all part of the organization.

Organization chart of KOF;

Board of Directors

Chairman

Managing Director

Departmental Heads and

section Heads

Administrative Field OPS Quality Finance and Commercial

operation control account section

Other and workers

Source: organisation structure

INFERENCE
The above diagram shows the KOF foundry is having organization structure where the Board of directors is
head of department. Under chairman the managing director will come, then departmental heads and section
heads. Then administrative, field operation, ops quality control, finance and accounts section and
commercial, finally employees.

PRODUCTION DEPARTMENT

PROCESS OF PRODUCTION

WORKFLOW MODEL:

PROCUEMENT OF DIFFERENT EDIBLE OILS

UNLOADING TO MAIN BULK STORAGE TANKS

EDIBLE OIL MOVEMENT FROM BULKS STORAGE TANK TO

INTERMEDIATORY / SERVICE TANKS

SERVICE TANK TO DIFFERENT PACKING MACHINES

 PACKING OF EDIBLE OIL

PACKED OIL STORED IN TO GODOWN

DESPATCHES TO DIFFERENT LOCATIONS

SOURCE: Production department

PRODUCTION AND PLANT REQUIREMENTS

 pouch filling machine

 Tin filling machine

 Barrel filling machine

 MRP printing machine

 Coconut oil bottle filling machine

 Pack way material

Raw Materials

 Groundnut oil

 RBD Palm oil

 Refined Sunflower oil

 Refined Soya oil

 Refined Sun oil 2

  Coconut oil

Packaging:

 KOF products are available in attractive packs in different sizes ranging from 100-200ml,
500ml, 1litre, 5kg can and 15kg tin and 91 kg Barrels

All processes are digitally monitored. Machinery at the plant is inspected

periodically and preventive maintenance of equipment’s and lines is done to avoid damages and
untimely breakdowns. In observance to stipulated standards, routine calibration of meters and
control device are done.

Quality control is foolproof with continuous checks during raw material, production

They care for the environment:

KOF understands its social responsibilities. That is why, this Govt. Ltd. focuses on
environment friendly waste disposal with a top of the line effluent treatment plant built in house.
This industry adopts safe and healthy practices to protect the environment.

QUALITY CONTROL

Role of quality control section

The motive of the quality section, to avoid adulteration in edible oil and they recommend good
quality oil to consumer.

In this section all inputs material of Edible oil (GN oil, RF oil, RF soyabean oil,RBD palmolien
oil, Rice bran oil, coconut oil etc..) and raw material of oil seeds (GN seeds, SF seeds, SAF flower
seeds etc..) quality checking as FSSAI (PFA) specification before unloading the materials. If the
oil/seeds not meeting the standard specification this section reject the same. And before sending the
packed oil to consumer ones again checking the quality parameters as per FSSA (PFA)
 And before supplying seeds to the formers in this section conforming germination testing
seeds. which seeds not conforms standard germination specification the quality section recommends
those seeds to crushing for oil.

This is the major role of the quality control section of this organization.

METHOD OF SAMPLING FOR GN PODS / SF SEEDS / SAFFLOWER SEEDS AND SOLID

MATERIALS IN BAGS

Draw 20 samples vertically from the load each sample from each bag should be around one kg. The
sample drawn in such way that it shall be average sample of that bag, and sampling should be drawn from
the top, middle and bottom rows of the load, randomly, then these 20 samples drawn shall be average
properties of the load. And make four samples by quarter method, two samples for analysis purpose and
two samples for reference (to preserve) samples.

METHOD OF SAMPLING OF OILS / FATS

1. Oil in drums:-

Sampling must be 100% i.e., sample must be drawn from all the drums in a lot and sampling should
be done after rolling of drums. If the drum was lying in standing position. But rolling is not necessary at the
time of unloading. The drum from the truck as the drums automatically set rolled. Use sampler of ½” internal
dia metallic tube with non-return value at the bottom of the tube.

Take the sample from the top, middle and bottom of the drum with the help of sampler in a equal
quantity, whenever inserting the sampler tube inside the drum, free top and closed tightly by placing thumb
where the sample to be taken from.
 Make composite sample of all samples drawn from the drum and then make 4 sets of samples, one
for analysis and others for reference sample on

2. Oil in road Tanker:-

Sampling tube is a stainless tube or can with a float value at the bottom.

3. Bottom sample:

Open the bottom value slowly and allow the oil to flow into a clean bucket and close the value,
rinse the bucket with oil, if separated water or extraneous impurities found present. The supplier may be
allowed on request to drain out it some quantity of oil or reject the supply and collect about 2 to 3 kg oil
in the bucket.

4. Top sample-

Insert the sampler through the manhole and allow oil to enter into the sampler, take out the sampler,
transfer the collected samples into the bucket having the bottom oil sample (volume of sample should be
collected same quantity in all points of sampling) mix the sample thoroughly and make 3 to 4 sets of
samples for reference and analysis.

HUMAN RESOURCE DEPARTMENT

HRM is a very important asset of the company, which is responsible for properly assigning
various functional roles of the company. HRM plays a vital role in fulfilling business goals and
objectives by its presence in every aspect of business.

Further human resource is properly managed by respecting their rights, duties and
responsibilities. So factors like bonus, wages, incentives, promotions and demotions and even
transfers are taken into consideration.

Hence different dispute settlement groups and agencies are maintained for settlement of
lockouts, riots, strikes, accidents and breakdowns, their duties and rights are protected under
government rules and companies’ rules.

Time scheduling is implemented for division of work as per talent and skills of employees
and workers are concerned to maintain quality in business activities.
 Policies and practices of HRM:

1. Any form of demand and solving of problems should go through collective bargaining.
2. Employees should maintain respect and discipline in fields of work.
3. There is no child labor and time scheduling is done for distribution of work.
4. There is no discrimination in case of sex, age, income and occupation among employees and
workers.
5. Agencies are organized to solve problems of lockouts, strikes, riots and other disputes.
6. Any form of reward is given by noticing the experience and talents in employees.
7. Suggestions and recommendations should be sought through top management in case of
lacking knowledge in business activities.

RECRUITMENT, SELECTION AND TRAINING:

RECRUITMENT:

Recruitment of workers and employees is made based on their qualification, experience in

machine handling .

MEDICAL FITNESS:

All the candidates who are listed are subjected to medical examination by a qualified or
registered medical practitioner and the medical certificate thus obtained shall be maintained in the
personnel files of the respective candidates.

TRAINING:

The systematic training shall be imparted to all the new incumbents by the procedure has
explained below

Induction Training.
All the operatives and the technical personnel shall be exposed to induction training of 6 days (48
hours), where the emphasis shall be laid on the following aspects
 Confidence building.
 Sense of pride, sense of belonging and dignity of labour.
 Work life and work ethics.
 House keeping
 About the activities.
 Quality.
 Safety and accident prevention
 Health and hygiene.

A. Skill Development:

Primary training and

Multi skilling training.

B. Performance Appraisal:

Performance assessment of each incumbent shall be made systematically after every 3 months
during the first year i.e., 4 assessments during the first year and later the assessment shall be
done every 6 months. The weight age shall be given to each of the following parameters While
carrying out the performance assessment (the model format is enclosed)

Attendance 10%

Skill 50%

Knowledge 20%

Attitude 20%

Every assesses shall be informed about his or her performance, so as to enable him \her to
improve if there are any short comings.

Training and Development

Training is one of the efficient tools that help any organization in avoiding obsolescence of the
knowledge of manpower so the need of training is-

1. Technological obsolescence
2. Motivation.
3. Attitudinal change.
4. Reduce manpower turnover
5. Improves the quality.
6. Increases the productivity.
7. Personal growth.
Training is classified into two types.

a) In -house training.
b) External training.

A. In -house training:

When the training is conducted within the organization it is called in- house training. In MOIPL,
training is provided for technicians, supervisors and workers. In this type of training the trainer
would be an internal or external source; usually an expert in the field is called for, such training in
the organization.

B.External Training:

The training which is provided outside the organization is called external training. These are the
training program where all executives attain and is conducted by the professional consultants from
any part of India. This includes workshop that are conducted in hotels and the programs are
conducted by the professional bodies and educational institution. The subject dealt include
personality development, industrial opportunities, stress management all are allowed to attend
such programs depending on the importance of the subject and the designation of the executive
the external training is usually for high grade employees.

1. Performance appraisal
Performance appraisal is a formal structured system of measuring and evaluating and employ job
related behavior and, outcomes to discover how and why the employee is presently performing on
the job and how the employee can perform more effectively in the future so that the employee,
organization and society are benefited.

In the organization the authority maintain “Annual Confidential Report” (A.C.R) of all their
subordinates with the performance updated very often, it is kept highly confidential and is available
only to the senior authority. During the time of performance appraisal the various positive and
negative factors are discussed by the committee, it comprises of the head of the department and
higher decision making authority.
In the organization the criteria for promotion is time bound and performance on merit based.
The promotion is given once in five years to the office staff and ones in seven years for the
workers, technicians and supervisors.
2. Motivation
Motivation may be understood as the set of force that causes people to behave in certain ways. In
this organization the motivational concepts are
1. Promotion.
2. Increment
3. Rewards.
4. Incentives.

3. Employee Remunerations:
In the organization the remuneration paid to the employee is
1. Wage and salary.
2. Incentives
3. Fringe Benefits
 Provident fund
 Gratuity
 Medical care.
 Accident relief.
 Group insurance.
 Canteen.

4. Perquisites
 House rent allowance.
 Petrol allowance.

Other benefits
 Sick leave
 Child care leave.
 Maternity leave.
 Vacations
 Traveling allowance.
 Moving allowance.
 Employee medical allowance.

Retirement Benefits:

Individual who retired on completion of 58 years of age get some of the benefits, if he has
been in continuous service for past 3 years.

1. Provident fund
2. EPF (Employee Pension Fund)
3. Insurance.
4. Group Insurance
5. Gratuity.
Death:

In case of death of any employee during his service the organization will provide all the
benefits that are due to the nominee of provident fund, gratuity and any savings during the course
of service and any unsettled encashable leaves are allowed for immediate payments.

Canteen:

Every employee, temporary or casual labour is provided by the canteen facility. The food is
available at a subsidized rate. Coffee\Tea is provided two times a day at free of cost.

Functions and Festivals:

There are many functions and festivals celebrated in the organization. Some festivals and
functions are from the side of administration and some are from workers. They are

1. Administration.
a. Workers day.
b. Safety day.
c. Ayudha puja and
d. All national and state festivals.

2. Workers
a. Ganesha festival

Marketing Department

The company’s product is directly sold to whole sellers and retailers so it is having strong
marketing strategies so whole sellers and retailers are the main source of marketing of this
product. The company does not have strong advertisements and promotional activities so product
is lacking publicity among consumers.

Company is having good sources of supply agents who are intermediaries between
company and outside dealers, product is placed in whole sale and retail shops where it face
competition from different competitive brands like Gemini, Priya, Gold winner and palm oil..
 Further product can be advertised in local news channels and even in newspapers, which
will not have any strong impact in minds of consumers so mostly, women are aware of product
availability in the market due to their preference for this brand in cooking factor.

MARKETING ASPECTS

1. Users
Oil - As unrefined vegetable oil, it could be sold in bulk to a firm that would then refine and
market it to individuals and restaurants as cooking or salad oil. When treated with hydrogen, it may
be an ingredient in fats and spreads like margarine. Feed - This is a feed stock used generally to
feed animals. It is sold in bag and bulk. Starch - This is similar to maize starch. It is suitable for a
wide range of industrial and food uses, where a thick, boiling starch is desired. Sales may be in bag
or bulk.
2. Suppliers
The grain sorghum supply will come directly from farms or from country elevators.
3. Sales Channels and Methods
Sales of unrefined oil will be made directly to refiners. Sales of the feedstuffs will be made
through local brokers or to blenders of feeds. Sales of starch will be to various users.

4. Geographic Extent of Market

Markets for feeds are generally local or regional, but export is feasible. Sales could be
made to enterprises based on fattening animals for market or raising fowl by mass methods, or to
farmers when hay and silage are in short supply. Sales of oil and starch may be regional or for
export.

5.Competition
All of the products are standard commodities and are subject to competition worldwide.
The success of the venture depends on the isolation of the market by transport cost, tariff, or
subsidy. Some competition may come from local small-scale projects making starch from cassava
or white or sweet potato. These operations will produce crude material, but since the capital cost is
so low, they could be competitive in periods of depressed prices.
6. Market Capacity
Because of the variety nature of the products, the market may be national and
international.

Package design

The product lines which are manufacturing by the KOF industries. The plant is capable of
producing high quality of oil and the KOF oil industries producing many kinds of product you can
see above of pictures showing how company have the packaging system. Company has an
excellent packaging structure and also packaging is the 5 th pillar of the marketing. The given below
product profile are as follows.

Product lines

 SAFAL OIL(double filter groundnut oil)

 SUNGOLD(refined sunflower oil )
 SUNSAFAL OIL(refined sun flower oil II)
 SAFAL HEALTH (refined rise brain oil
 SUGUNA(soya refined oil)
 NET RICH(ground nut & rice brain oil)

Distribution policy, terms – condition.

 Basic cost

 Production cost

 Margin cost

 Including all cost

Details on sales promotion undertaken in last 3 years

In every area like, rural, semi urban and urban area. The said company using are following
advertisement

 Pamphlets’

 Other advertisements
And this time company carrying TV adds. The said company they are lunching add in TV 1 st time
company wants to shine their products in every area.

Methods of selling sales channels and methods :

KOF sales its products through the several distributing agencies, brokers, wholesalers and
retailers.

FINANCE DEPARTMENT

Finance is like backbone of the company so that the company should have appropriate
funds to meet their expenses and to stay in market by having good funds to survive in business,
and this company is having good surplus and reserves compared to last year which should be
managed for future uncertainty in business and even cash and bank balance has increased which
shows companies good performance in business and further companies income should be
recognized through financial statements and by companies growth and company has maintained
good working capital, capital structure and having good sources of funds.

Objectives of Finance Department:

 protect the financial interest of the company

 To To help in achieving the interest/goal of the company

 Monitoring collections and payments

 To exercise cost control and cost reduction techniques

 To monitor budgets and budgetary controls

 Controlling the out flow and inflow of cash

The main function of the finance department is:

 To handle the customer problems

 To handling the executives reimbursements

 To handle the petty cash

 To keep track of inflow and outflow of cash

 Preparation of capital budget, reporting and monitoring of capital budget and capital expenditure
analysis.

INFERENCE

The organizational structure of enterprisers would depend upon size product manufactured and its
functional division. The organizational structure may be flexible. The company may change its
structure according to the needs and suitability

In Industry, the board of directors is having the major position in the company. The company cum
managing director (CMD) of the company, he is responsible for formulating and implementing the
policies procedures and rules with the assistance of board of dire

4.3. STRATEGY:

Strategic planning is about asking questions, more than attempting to answer them.
Strategy formulation entails a search for a different frame of reference. It is the
quest for a new business paradigm. There are two types of paradigms that apply to
 management, namely the business and the organizational or managerial paradigms.
The business paradigms define a company’s position in the market place with
respect to customers, technology and products. Strategy is a choice of direction
and action; the company adopts to achieve its objectives in a competitive situation.
Any statements on overall of functional strategy that the company may wish to
share are:
Improvement in the existing products.
 Their future plans include launching of new products.
 The cost control exercise is in consolidation.
 Introduction of cost effective substitutes without compromising on quality

INFERENCE
THE KOF foundry is having a strategy for having a good relationship with
employees and managers giving job satisfaction and giving motivation to face professional
challenges. They insure equality at all levels and provide them the right work environment.

4.4. SYSTEMS:

A. Accounting System:
Financial statements are prepared under the historical cost convention on an accrual basis and
comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.

B. Costing System:
Process costing.

C. Inventory Control System

ABC analysis for stock control.
FIFO method for issuing materials.
 Computerized accounting system for stores.

D. Remuneration System:
1. Time rate system is followed to employees.
2. Government fixes the remuneration to executives.

E. Performance Appraisal System:

Confidential report is prepared by heads of various departments for systematic
Judgment of the subordinate by authority to assess the standard of work & overall
Performance.
F. Inventory Control System:

INFERENCE

The system of the company clearly shows the formal processes and procedures
used to manage the organization performance management measurement and reward systems,
planning budgeting and information system they follow the bottom to top approach in decision
making.

4.5. STAFF:

As any employer, KOF follow ethical employment standards wherever it

Operates with a goal in mind company guarantees.

1. To fulfil its entire legal obligation in terms of employment payments and benefits practices.
2. Adequate and timely training for every one for the job for which they are
employed
3. Career advancement related to performance and experience.
Benefits provided by KOF:
Monetary benefits are basic wage allowances, employee’s contribution to PF.
Employee state insurance, bonus, pension gratuity etc. Fringe benefits like housing, food
canteen, etc.

Allowances:
The gross salary includes basic pay and
1. DA
2. City compensatory allowance 5% of basic pay.
3. HRA.
Regularly the administrative is 9.30am to 6.00pm
5. Leave allowance: 12 days casual leave, 06 days of medical leave, 30 days EL, RH.
6. Canteen facility
7. Bonus: It is declared within 8 months after closing the accounts the management has
Declared two months’ salary.
8. Increments

INFERENCE
In the organization employees play an important role. Here the employees are
the strength for the company by contributing more efforts in the production department.

4.6. SKILLS:

The term “skills” includes those characteristics, which people use to describe a
Company. Organization have strengths in a number of area but their key strengths are dominant
skills are few.
 These are developed over a period of time of the result of the interaction of a
number of factors performing certain tasks successfully over a period of time, the kind of people
in the organization, the top management style, structure, the management systems, the external
environmental influence etc. Hence when organization makes a strategic shift it becomes
necessary to consciously build new skills. Employee’s skills in an organization will be unique,
this may be due to their experience in the place of work, and the similarity may also due to
influence of the similar culture. However every person according to his traits possesses his own
talents and special Characters. This cannot be generalized skill among them. The employees of
KOF have different skill, which are relevant for their work. As it is common in big
organizations, he also controversies between departments which can be solved by discussions
and by conducting some interactive programs.

INFERENCE
Employee training, knowledge, skill and commitment of its employee are keys to the success of the
company. When they make a valuable contribution towards ensuring that supplies and service meet
the demanding requirements set by customers in return, the company utilizes a wide range of the
measure to ensure that its employee develop their general knowledge to meet specific demand.

4.7. STYLE OF MANAGEMENT:

Decision-making is centralized with the head office. Authority is given to unit in charge to take
decision in day-to-day minor matters & other urgent matters Decision-making depends on the
authority & responsibility conferred on each individual & thus it’s distributed based on
designation & position held. In important matters, meetings are held to seek opinions of top
management & various department manager & the decisions are taken & implemented.
 Decision-making is co-ordinate & done with wide consultations of top management of
department manager’s consultation which gives best possible gains.

INFERENCE
THE Company is mainly focused on the working styles of the employees and employers. T hey
follow the order and rules for the working style.

4.8. SHARED VALUES:

Values:
Values refer to the institutional standards of behaviour that strengthen commitment to the vision,
and guide strategy formulation and purposive action. The core values are shaped around the
belief that enterprises exist to serve society. In terms of this belief, profit is a means rather than
an end in itself a compensation to owners of capital linked to the effectiveness of contribution to
society and the essential ingredient to sustain such enlarged societal contribution.
Thus company has embraced an extended role of trusteeship that reaches beyond the assets
reflected in the balance sheet to encompass societal assets. An unwavering commitment to
integrity, ethical conduct, meritocracy, teamwork and abiding concern for stakeholders are at the
heart of your company’s value system.
 Customer satisfaction
 Committed to total quality.
 Cost and time-consciousness.
 Innovation and creativity.
 Trust and team spirit.
 Respect for individuals.

INFERENCE
THE core values or fundamental values are widely share in the organization and serves as
guidelines that are important, These values have great meaning because they focus attention and
provide broader since of purpose.
 CHAPTER: 5
SWOT ANALYSIS

It is necessary to measure organizations “Strengths”, ”Weakness”, ”Opportunities”, and “Threats”

in line with details that has collected. The overall evaluation of a company’s strengths, weakness,
opportunities and threats is called SWOT Analysis. Strengths and weakness are related to
company’s internal environment and opportunities and threats are related to external environment.
SWOT analysis is based upon daily observation on organizational activities through out the period
of project it is conducted by recognizing past and present performance of company.

SWOT Matrix
Strengths Weaknesses
Opportunities S-O strategies W-O strategies
Threats S-T strategies W-T strategies

S-O is opportunities that may be a good match for your company.

W-O these are areas where you may need to make some adjustments to them before you can turn
them into an opportunity.
S-T allows you to see the ways that you may be able to counter the threats affecting the company
making you less vulnerable.
W-T these are areas where you can provide a game plan that allows you to “build a fortress”
around your weak areas so you aren’t so susceptible to external forces that could weaken your
company.
Using a SWOT Analysis when you’re looking at marketing is very beneficial in the long run. While
it takes some time initially writing down all the details, the entire plan will come into view and you
will have a better sense of the direction that you need to go. It’s a very valuable tool that no
company should be without.

> Strengths: characteristics of the business, or project team that give it an advantage over others

>Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative
to others

>Opportunities: external chances to improve performance (e.g. make greater profits) in the
environment

>Threats: external elements in the environment that could cause trouble for the business or
project

STRENGTHS
 Company is having good working conditions, which will help in smooth flow of business
activities.
 Company is having constant profits annually which lead to face unexpected expenses.
 Direct marketing strategy of company helps in reducing expenses.
 Company is having good transportation facility which helps in movement of product to end
users at right time,
 Company comprises of talented employees and skilled workers leads to efficiency in
production.

WEAKNESS

 PSU status is a big weakness for KOF industry as it is subject to their rules & regulations &
is forced to carry a huge amount of labour force, which it is not able to retrench.
 The company offers very stringent credit facilities to the customers & this is a weakness
when compared in the face of rising competition. On the other hand their customers in the
power segment, SBM banks, have a huge amount of receivables standing against their name in
the company’s balance sheet. This is a major weakness for the company.
 Workers lack skills of adapting new technology and changes which leads to low productivity
and poor performance.
 The company promotions need to be improved. Since Consumers are not properly aware of
brand and also lack information related to product, which gives less preference to the product.

OPPORTUNITIES:

 The oil sector reforms are expected to pick up in the near future in India, which would directly
benefits, KOF industry Pvt, Ltd
 There is a constant increase in the requirement of edible oil at households and at
commercial places. The company has a good potential to expand its business and operations
across the region.

THREATS:
 Continued economic & industrial slowdown / deferment of projects adverse impact on domestic
business.
 Slow growth in global trade
 Technology leaders unwilling to share new technologies & insisting on their terms / imposing
licensing restrictions on territories.
 International Players consolidating & setting-up local manufacturing bases.
 Infrastructure facilities and even agriculture output is the main concern for company.
 This industry is mainly dependent on agricultural productivity for that reason.

FINDINGS, SUGGESTION AND CONCLUSION OF SWOT ANALYSIS

Findings:
 The company aggressive advertisement and publicity as a part of sales promotion, increases the
brand awareness in the customers.
 The company has planned to come out new products like ―Mustard cooking oil
 The open-door policy of KOF Industry helps to maintain good human relation in the
organization.
 KOF industry maintained standard in their product.
 The company sponsoring different programme in the TV channels to advertise their products and
also to reach the outside the city

SUGGESTIONS:
 Company should take care of employees by appointing good HR
Personnel. By this they can create better environment in theorganization.
 By using new machineries they can improve their production level.
 Company should concentrate on employees training programmes
 Company should made arrangement for grievance handling and employee counseling.

COCLUSION
 Edible oil industry facing many problems all these problems also affect the
marketing activities of various companies. The problems low output, high import duty on raw
materials, adversely affect the prices of the products. It is already known that the price is the
deciding factor to purchase the product apart from various other factors. Though the company
may be having alternative feature but it ,is found that most of consumer is not aware of the
existing feature due to illiteracy, negligence etc. A branded product ultimately decided based on
consumer preference, perception & influencing factors etc. If the problems of industry cannot be
resolved then it is difficult to companies to adjust their marketing activities to consumer
expenses.

Chapter: 6

FINDINGS, SUGGESTION, AND CONCLUSION

FINDINGS

 The company goodwill is very strong.

 The organization is providing good transportation facilities to the employees.
 The company is concentrating on customers to satisfy them from all their needs &

requirements.
 In the production department the production facilities machines, their layout etc are

well maintained. The people at production department are really good and hard

working..
 When we look at the training programs program provided by the company most of

the training programs are related to only the job.

 Employees and managers of all the departments were very cooperative
 The quality of the product is more than the mark of satisfactory
 Organization employees are happy with the benefits and services provided by the

company
 As per the company statistics is concerned it is found the company has more young

and dynamics ranging from the age of 20-30.

SUGGESTIONS
1. Very important of all is their marketing department function that is it has to good advertisement &
builds brand awareness in the market.
2. The awareness level of Safal is not good hence the company should concentrate on aggressive
advertisement & sales promotions.
3. Job rotation, job enlargement, job enrichment needs to be done frequently in edible oil industry,
which would motivate an employee to-do better.
4. The company has to strengthen its presence among retails outlets so that maximum reach can
be attained. This requires formulation of dealer schemes to involve them in the affairs of the
company.
5. It needs to eliminate the excess work force.
6. The company should embark on a promotional campaign with concentration on field promotion
rather than media. Such has cut-outs, pop displays, hoardings, pomp lets etc
7. Most customers who are aware of Safal or Sun gold brands are under the impression that these
brands are meant for domestic consumption and not for commercial consumption. Bulk quantity
should be posed with greater efforts to market, which would yield greater and instant sales.

CONCLUSION

Private sector units will have to resort to quality improvement techniques & get
more interested in what the customer wants rather than what the company can after in order to
retain their customer base &get new customers.
Edible oil industry facing many problems all these problems also affect the
marketing activities of various companies. The problems low output, high import duty on raw
materials, adversely affect the prices of the products. It is already known that the price is the
deciding factor to purchase the product apart from various other factors. Though the company may
be having alternative feature but it ,is found that most of consumer is not aware of the existing
feature due to illiteracy, negligence etc.

A branded product ultimately decided based on consumer preference, perception

& influencing factors etc., if the problems of industry cannot be resolved then it is difficult to
companies to adjust their marketing activities to consumer expectation.
Learning Experience

This organization study project at Shri KOF Regional oil seeds Ltd, Chitradurga has enhanced my
knowledge in corporate level. Now I have understood how the industry maintains books of accounts and
transactions are made.

This project gave me knowledge about how the organizations are operated and how the organisation
structure is build and how it will helps to run the business. This study will improve my confidence and
knowledge by its successful completion.

The KOF Regional oil seeds ltd, Chitradurga has taken care of employees and customers in a good
manner. It has maintained good relationship with all the departments. All the employees are skilled and
experienced, so the industry is earning in profit every year.

This industry has a good financial position but still they need to establish their branches in other area.
The experience the internship that the interactions between management and team very best experience i had
in this organisation in 15 days come to know that the how actual situation that theoretical knowledge are
applied in the organisation. And all the support and guidance of manager and staff is very good.