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Organization Study on Priya Industries

CHAPTER ONE

INTRODUCTION ABOUT THE ORGANISATION AND THE


INDUSTRY

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Introduction About the Bottle and Water Industry:

The concept of bottled mineral is quite a new one for Indian People. Since we never
consider these things as necessity and especially when we are paying for natural resource
like water which is available freely. The bottled water market has recently seen growth;
the reason behind this may be the growing health consciousness among Indians or non-
availability of pure drinking water. Most of the users are daily travellers, patients or it
is used in parties/seminars. Moreover 30% of the whole mineral water customers are
travellers. When governments spoke about providing drinking water to all, little did one
imagine that MNCs would package it and sell it to us. The advent of the small bottles
has increased consumption. Buying water near the bus stop or at the railway station has
become a routine. Indian water market has many companies selling water, on an whole
there are more than 300 big & small players in the market some of the big players are
Bisleri, Aquafina, Kinley, Pure life, Mc Dowell etc. these companies are dealing in same
market, same price & also same capacity. Bisleri is owned by Parle group, Aquafina is
owned by Pepsi, Kinley is owned by Coke, Nestle has Purelife. But some small players
also have sufficient market share in their local market, like prime, silver drop, royal
fresh are very popular in the congested region. Bisleri is most popular brand in North
India. Bisleri is having big contracts like with air Indian & some part of Indian railways.

Since the early 1990s, Indian attitude have changed and people are flocking to the cities
at a frenetic pace - one-third of Indian now live in urban areas. But in many parts of
the country, quality of water is still a major concern. Given the extreme climatic
conditions in India, especially the heat and dust, plus the fact people are now prone to
dehydration because they commute further for work and social activities, the issues of
safe drinking water is more prevalent than ever. As the mercury soars, so do the sales
of bottled water. The advantage it has is unlike the Colas and other drinks dispensed
from vending machines, a bottle fits into a handbag and can be carried conveniently.
The trend of using mineral water for drinking purpose started as a means to take
advantage of the therapeutic value of water. This trend gained potential momentum during
1970s and ever since bottled water was exported every year from mineral springs in
France and other European countries. In western countries, the practice of bottled drinking
water started during 1950s. The first launch of bottled water in India was the launch of
‘Bisleri’ of Parle company during 1968-69 which was a major flop as the Indian

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population was not prepared to accept the concept of purchasing water. The market of
bottled water remained weak and inactive for as long as 20 years. The relaunch of
Bisleri in 1994, however, was a success due to the growing awareness and high
consciousness of health and hygiene among people. Today many medical stores in the
city are doing very well with the sale of branded bottled water. The brand name plays
an impression on the human mind. Bottled water is available in quantities of 330ml,
500ml, 1lt, 1.5lt, 2lts, 5lts, 10lts, 20lts and 50lts.

For a particular brand to be certified as bottled water it requires approval on 4 levels


namely the Central, the state, the trade association, and individual company levels.

EARLY NINETIES:

The filtration process was turning a new leaf with reverse osmosis technology trying to make
a foothold. Around same time, Polyethylene Terephthalate , widely known as PET, too, started
gaining ground as an ideal packing medium. Its usage was beginning to be accepted. With
numerous companies taking a plunge around same time, the experiment with process, packing
and market was on…

BOOM:

With no regulations to control neither the entry nor the quality, the market saw phenomenal
and unchecked growth for 7 years. Time and again, media hailed this industry as a SUNRISE
ONE and put the annual growth rate at phenomenal 40%. Small entrepreneurs, big business
houses, individuals, distributors, made a beeline for this industry. And then came the disturbing
part; In between there were numerous reports of inferior quality brands, duplications of the
product, recycling of bottles, utilization of tap water. Even well known brands had a tough time
with reports of inferior quality involving them started making rounds.

Any brand with an Indian processor was being looked at with suspicion by knowledgeable
customers. These suspicions were confirmed firmly by CONSUMER EDUCATION AND
RESEARCH SOCIETY through its independent testing of 13 leading brands [January 1998],
and the tests were startling. Most of them were not up to the mark!!.

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BIG BROTHER WATCHING:

Perturbed by these reports, finally MINISTRY OF HEALTH & FAMILY WELFARE


[Department of Health] vide notification dated 10 it compulsory to obtain ISI mark for every
processor operating under Indian Territory. It was supposed to be enforced from 29 March,
2001 and later date was relaxed till 30 these standards were prepared long back, nobody had
bothered to obtain the mark [Barring one: Blue Lite , Delhi]. ISI has stringent procedure of
screening the unit .Process, hygienic conditions, in house lab testing, packing & documentation
pertaining to these. Due to absence of regulation nobody wanted to touch ISI with a barge pole
as apart from these lengthy procedures, a tag of heavy marking fee came along. Post
Regulation, it became fate accompli. Things were not the same…

The new regulations outlined the processes, packing, hygienic conditions, in house labs,
presence of chemist and micro biologist, rigorous testing of product, voluminous
documentation and heavy marking fee. Out of unofficial reports of presence of more than 3500
processors and packers, only handful survived Most of them are bottled up!

VARIOUS FACTORS LEADING TO GROWTH OF BOTTLED WATER

1. Burgeoning population.
2. Rapid urbanization.
3. Phenomenal increase in tourism.
4. Growing awareness about drinking water.
5. Inability of central local government to provide clean drinking and safe drinking water.
6. Strained government resources.

“DEMAND OF WATER WOULD NEVER GO DOWN…. & WATER


WOULD NEVER BE OUT OF BUSINESS”.

Market insights:

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Increasing health concerns, and unavailability of clean drinking water have led to the growth
of the bottled water market in India. The market is expected to reach INR ~242.6 Bn by the
end of 2020, from its 2015 value of INR 88.7 Bn, expanding at a compound annual growth rate
(CAGR) of ~22.3% from 2016. The major bottled water brands operating in India are Bislery,
Kinley, and Aquafina.

Market trends:

Flavoured bottled drinking water has become popular in India. Different kinds of flavoured
water containing fruit essence and artificial sweeteners like soda, cola, juice, and other
sweetened beverages often act as a substitute to plain bottled water. At times consumers prefer
flavoured bottled water to normal bottled water. This shift is developing an opportunity to
expand the product line of bottled water manufacturers in India.

Apart from individual sales, market players in India have recently inclined towards institutional
sales through partnership with airlines, movie theatres, and hotels. Such partnerships are
eventually increasing the penetration of the product in the market, followed by rise in the
overall sales volume in India.

Market drivers:

India accounts for ~18% of the global population. In addition, the per-capita income of Indians
witnessed a growth of ~8.6% in 2017. Moreover, increased awareness among the growing
population about the importance of safe drinking water for maintaining good health, along with
a sharp rise in per capita income is creating a demand for bottled water in India.

Tourists prefer bottled water to normal tap water. The rate of foreign tourists in India is
expected to increase at a rate of ~6.7% during 2015-2025. This, in turn, is anticipated to boost
the sale of bottled water in India.

Market challenges:
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In recent years, a number of companies selling fake branded bottled water have cropped up in
the market. These players do not maintain quality and hygiene standards, which in turn leads
to health issues among consumers. As a result, consumers lose faith in bottled water, thus
affecting the overall sales.

Nearly 67% of the population resides in rural areas. However, the rate of penetration of bottled
water is significantly low in these regions. This, as a result, hinders the growth of the market
in India.

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Organization Study on Priya Industries

CHAPTER TWO

ORGANISATIONAL PROFILE

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2.1 Background
Priya industries invented ECOLIFE water plant in Ballari .it was originally an Indian brand
created by Mr. Sathya Narayan Reddy, it was launched in 2011 by Mr. Sathya Narayan Reddy.
in 2011 started bottling mineral water glass bottle under the brand name “ECOLIFE”.
 It has presently one water plant in Ballari.
 They presently deal with packing size from 250ml,500ml,1ltr,2ltr,5ltr.
 Strict hygiene conditions are maintained in the plant to produce the water bottles

2.2 Nature of business: over the last 8 years company has setup the mineral water plant is
being set to standard with a high degree of automation and in building mechanism maintaing
high standard of sanitation and hygiene.

Manufacturing process:
Material: the raw water is to be obtained from borewell and the water which they stored during
the rainy seasons. Without minerals there can be no output. The bottles are made from polymers
such as Hdpe, Pet Raw water recycled cartoons stickers.

Personnel: Eco life water requires mostly skilled labor’s. along with skilled labor’s they also
include production, plastic and other various engineers are required here.

Capital Asset: eco life water plant has got 8 injections moulding machines and 4 automatic
blow moulding machine.

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Manufacturing process:

Ground
Ground water ozonation Pre filteration

Added minerals Micro filteration Reverse osmosis

Final ozonation Ready to


Final product
distribute in the
market

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2.3 vision mission and quality policy

Vision:
PRIYA INDUSTRIES providing the best mineral water products to enrich the human
experience.

Mission:

1. To provide the highest quality product, keeping in mind all aspects including freshness,
purity and safety, and making it easily available to the consumer at a very affordable
price.
2. To achieve international standards of excellence in all aspects of energy and diversified
business with focus on consumer delight through value and services of product and cost
reduction.
3. To enhance capital and fixed assets of the group to withstand challenges and tough
market trends.
4. To attain leadership in developing, adopting and assimilating state or art technology for
competitive advantage.

Quality policy:
1. We are committed to implement good manufacturing practices and to achieve
continuous improvement in the plant, process and distribution chain.
2. We ensure full compliance to all government regulatory norms and strictly adhere
to the internal standards of the quality and hygiene.
3. We will strive to train all our people develop an obsession for quality in all aspects
of work in our organization.

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2.4 WORK FLOW MODEL

FIRST RECEIPT OF RAW MATERIAL

RAW MATERIAL RECEIVED ARE SUBJECT TO

QUALITY CONTROL ANALYSIS

STORED IN STORE DEPARTMENT

ISSUE OF RAW MATERIAL BY FIFO METHOD

PACKAGING OF PRODUCT

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FINISHED GOODS STORAGE

DISPATCH OF PRODUCT FOR SALE

2.5 Product and Service Profile

Eco life water with added minerals:

Eco life water contains mineral such as magnesium sulphate and potassium bicarbonate which
are essential minerals for healthy living. They not only maintain PH balance of the body, but
also keeping us fit and energetic all times.

Eco life water with added minerals is also put through multiple stages of purification to ensure
the elimination of all forms of bacteria.

This makes water completely safe to consume.

Packaging:

Eco life water is spices of life. Today for any business organisation to be successful it has to
provide its customer with differentiate product that is a value buy for them. In order to carter
to changing the needs of the customer the business has to continuously come out with variants
of the products so that it can target maximum targets.

Distribution:

It is obvious that availability holds key to the market foe any product to be successful
distribution system has to be really good large tracts of the country have not been explored by
natural brands which explain the proliferation of small brands.

2.6. Ownership Pattern:

A Priya industry (Eco Life) is privately owned company which is under taken by the following
member

Managing Director & Owner: Mr. Sathya Narayan Reddy

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2.7. Achievements & Awards:

Eco life has become generic Brand in the bottle water segment and complies with IS standard
of quality

2.8. Future Growth and Prospectus:

Eco life in a totally virgin market and naturally people associate the brand with bottle water.
No Eco life water is perhaps already ten steps ahead of its local competitors and endeavors to
widen its gap in the month to come. The brand positioning of Eco life water stress on pure
clean and safe drinking water. Sales have grown by 200% in the year 2018, Eco life water hope
to boost its sales by more than 300%.

Some of the future plans to be spot that Eco life water commands in the Indian market
are:-

 New Packaging in bottle and 50Lts

 Increase in the distribution network with an investment of over 30 crores

 Target to achieve 200 Crore business and a fleet of 250 Trucks.

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CHAPTER THREE

MCKENSY’S 7S FRAME WORK AND POTTERS FIVE FORCE


MODEL, WITH SPECIAL REFERENCE TO ORGANISATION.

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Mckensy’s 7s Frame Work

There are many management approaches which talk about managing the things and operation
in an organization. One of the famous modes to analyse the pattern of management is Mc 7s`
frame work. The 7s` model is better known as Mc Kinsey’s, this is because the two persons
who developed this module. Competes & Robert waterman has been consultant at Mc Kinsey’s
and co.

That may affect the implementation of any strategy as the model originally developed as a way
of thinking more broadly about the problems of organizing effectively. It is a judge tool for the
implementation of the strategy.

The hardest elements are visible and easy to identify as they can be found in a strategy-
elements, corporate plans, organization charts and other documentation of the company. They
are.

 Strategy
 System
 Structure.
The soft element involves difficulty in describing their capabilities, values, and elements of
corporate culture. They are.

 Style
 Staff

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 Skills
 Shared values.
According to Mc Kinsey’s strategy means the action, this company in response or anticipation
of change in its external environment. In other words it is the sources of action and allocation
of resources to achieve the organization goal.

1. Strategy Priya Industries ltd goes for all out consumer loyalty.. To turn out to be No
1 organization in North Karnataka by utilizing the market data. To extend their market in
Ballari and in close by areas before getting the more challenge. To end up one of the main
container water industry in Karnataka. when they get contact with any client they don't
leave them they bring with Priya industry. furthermore, they more limits to their
advantaged clients.

2. Structure:
The plan of the association structure is basic errand of the administration of an association. It
is the skeleton of the entire association. Structure alludes to the hierarchical game plan for
playing out the errand and exercises. Priya Industry pursues a straightforward and compelling
structure which is appropriate to Ballari territory. The correspondence stream is smooth with
no hole in the middle.

CEO

Receptionist

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Accounting Creative director Accounting


manager manager

Marketing Production Production


3. System:
assistant assistant assistant
Priya Industry follows various systems

 Inventory control system : An inventory control system is a system the encompasses all
aspects of managing a company's inventories; purchasing, shipping, receiving, tracking,
warehousing and storage, turnover, and reordering.
 Order execution system : Execution is the completion of a buy or sell order for a security.
The execution of an order occurs when it gets filled, not when the investor places it. When the
investor submits the trade, it is sent to a broker, who then determines the best way for it to be
executed.
 Merit rating system : A merit rating is a score that each state assigns to employers based on
their employment stability and employee turnover. The state then uses the merit rating to levy
state unemployment taxes on each employer. Companies with lower ratings will have to pay
lower unemployment tax percentages.
 Process and quality control system : Quality control is a process intended to ensure that
product quality or performed service adheres to a defined set of criteria or meets the
requirements of the client. Through the quality control process, the product quality will be
maintained, and the manufacturing defects will be examined and refined.
 Ultra-filtration gives reduction in turbidity and ads sparkle: Ultrafiltration (UF) uses standard
home water pressure to push water through a semipermeable membrane and remove any

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contaminants. Unlike reverse osmosis, ultrafiltration retains minerals in the water, while
filtering out bacteria, viruses, and parasites

System of Priya industry : the working staff of Priya industry is very well discipline
when ever there is shortage of staff in Priya industry the remaining co ordinate with
each other complete their pending works and deliveries of water cans

4. Shared Values:

The Priya Industries ltd offers significance to the two its client and representatives and
statement of purpose reflects it. The witticism of the organization is to fulfill its client quality
items.

When it comes shared estimations of Priya industries : the chief of the Priya industries is all
around well disposed when the worker of Priya industry is in a difficult situation the executive
deal with their of the representatives whether it is cash issue or paying school charges and so
forth the executive helps their workers in each way.

5. Style:

Having a participative sort of administration, the top administration of Priya Industry restricted
empower the activity from representative and attempts to actualize them. Intuitive segment is
led at customary interims. Organization has free up ward correspondence channel.
Leader ship style of managers of Priya industries Ltd:

Maintain discipline in the organisation : The best way to maintain discipline in the
workplace is to set clear rules for all employees. Make sure your staff members understand the
company's policies and code of conduct. Organize meetings to discuss these aspects and help
your employees acknowledge the importance of workplace discipline

Give instructions and orders to subordinates : Changing the way you give orders to
employees can result in a more effective, productive department. Tell the employee that you

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have a new task you would like to discuss. Explain the task in detail. Tell your employee why
you want him to complete the task.

Maintain unity in the organisation Unity in the workplace is a vital element for success, as
discord and conflict can lead to lower levels of morale and productivity. When staffers
can work together in a collaborative manner, it creates better workplace dynamics, encourages
people to perform at top levels and creates a sense of solidarity and loyalty.

6. Staff:

The Priya Industry hired people and they train them well and they assign job to right person at
right time.

There are around 250 employees working in the organization.

75-staff 175-casual

7. Skill:

Skill refers to the ability to perform certain task without any difficulty. The organization is
fully dependent on its staff. The management of the organization has got the capacity of
achieving the targets through various skills. They are.

 Skill to keep the morale of the employee at high level by suggestion, quality circle etc, which
require employee involvement.
 Skill to achieve daily target for monthly profits.
 Skill to achieve employee satisfaction by proper performance appraisal and effective
administration.
Training is imparted continuously to employees depending on the requirement. The training
can be of two types on-the time& of-the time training.

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PORTER’S FIVE FORCE MODEL for Priya Industries Ltd

Competitors: where as the Priya industry is old customer in the market it is quite common
as you grow in the business the competitors also grow along with us .the following are the
competitors of Priya industry are

1 Aquafina

2 Bisleri

3 Kinley

4 manikchand

5 kingfisher drinking water

Potential of new entrants:

The Potential Entrants are Excel water purifier and various new local brands that come in the
market. Royal Waters is also in a process to enter the bottled market in the premium segment.

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Threat of substitutes:

The Substitutes in this industry would be soft drinks, aqua guard, tap water and the most
economical drink Nimbupani. The industry estimates that bottled water is the fastest growing
beverage segment and is immediately followed by the soft drink/aerated beverages market

Power of customers:

The Buyer Power should also be considered when the buyer will demand more quality or
service, and set competitors against each other, all at the expense of seller’s profitability. This
power is prevailing in the industry where there are many brands fighting for their existence or
for their share. One of the ways to defend themselves would be to develop superior offer that
strong buyers cannot refuse.

Power of Suppliers:

When the company suppliers are ready to raise price and reduce quality then the supplier’s
power would be high. Due to there are many local players in the market the suppliers will
supply to the one who has more market share and who would provide in time cash receipts.

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Organization Study on Priya Industries

CHAPTER FOUR
SWOT ANALYSIS OF PRIYA INDUSTRIES LTD.

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Swot Analysis of Priya Industries Ltd:

Strengths:
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1. Priya industry has very Planned marketing team and they follow various strategies for
covering up the entire Ballari district market and they various channels of distribution.
Like delivery water can if there is no availability auto and then arranges the other mode
of transportation to delivery because they give importance to their customers first
2. Priya industries is a Well established federation they have hold market grip very strong
and very good.
3. Priya industries have very good brand image in the market thanks to Mr Sathya
Narayana Murthy for creating the brand image because of the very good brand image
they doesn’t required marketing in some areas of Karnataka people buy their product
by seeing the brand name the costumers buys their product.
4. Priya industries they provide quality product to their customer because they don’t go
with low quality product they go with only high quality of water can , water bottles etc.

Weakness:
1. Most of the workers in the industry are uneducated and they come from small villages
so Very less exploitation of the advantages of information and technology.
2. sales of the Priya industry are of credit sales and some some times their amount get
struct in their market so there will be less profit.
3. Majority of the time when Priya industries starts hiring the people they don’t get as per
their requirements so they go with the hiring with uneducated people .
4. Lack of efficient management.
5. In Ballari specially during summer season there is no proper power supply because no
proper Electricity so can’t produce their expected target.

Opportunities:
1. Opportunities to train employees in various multiple skills.
2. Expansion of business in both segment in rural and urban markets.
3. Interrogation of attitude & skill for organization growth and growth of individuals.

Threats:

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1. Contract labour issues in Priya industries they get labour for contract basis
they make contract for 3 years but before completion contract tenure the
employees run away from their .
2. As Priya industries is very old player in the market he produces bottles at
low rate with high quality but their competitors charge double the money
more from Priya industry but they produce high price low quality product.
3. Leadership role and responbilities are restricted only to few employees.

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CHAPTER FIVE:
ANALYSIS OF FINANCIAL STATEMENT

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Mar-18 Mar-17 Mar-16 Mar-15


source of funds
owner’s funds
equity share capital 61.38 61.38 61.38 61.38
share application money - - - -
reference share capital - - - -
reserve and surplus 1177.06 1106.38 1039.4 969.58
loan funds
secured loans 507.86 535.64 661.65 656.09
un secured loan 671.25 555 577.09 350
Total 2417.55 2258.4 2339.52 2037.05

use of funds
fixed assets
gross block 1846.37 1813.09 1784.71 1846.34
revaluation reserve - - - -
accumulated revaluation 1264.1 1201.66 1110.93 1012.06
Net Block Value 582.27 611.43 673.78 834.28
Capital work in progress 196.76 167.4 157.72 144.88
Investment 834.45 708.68 770.18 744.85
current asset loan and advances 1850.62 1695.8 1439.5 1297.11
current liabilities nd Povisons 1046.56 924.89 701.65 984.06
Total Net Current Assets 804.06 770.91 737.85 313.05
Miscellanous Expenses Written - - - -
Total 2417.54 2258.42 2339.53 2037.06

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Ratio Analysis

1. current ratio = current assets /current liabilities


𝟏𝟖𝟓𝟎⋅𝟔
For the year 2018 = = 𝟏. 𝟕𝟔
𝟏𝟎𝟒𝟔⋅𝟓

𝟏𝟔𝟗𝟓⋅𝟖𝟗
For the year 2017 = = 𝟏 ⋅ 𝟖𝟐
𝟗𝟐𝟒⋅𝟖𝟗

2. Debt equity ratio = long term debt / shares holders fund


𝟐𝟒𝟏𝟕.𝟓𝟓
For the year 2018 = = 𝟏. 𝟗𝟓
𝟏𝟐𝟑𝟕𝟒𝟒

𝟐𝟐𝟓𝟖.𝟒𝟏
For the year 2017 = 𝟏𝟏𝟔𝟕.𝟕𝟔 = 𝟏. 𝟗𝟑

3. Debt total ratio = total debts / total assets

𝟑𝟒𝟔𝟒.𝟏𝟏
For the year 2018 = = 𝟏. 𝟑𝟏
𝟐𝟔𝟐𝟗.𝟔𝟓

𝟑𝟏𝟖𝟑.𝟑
For the year 2017 = 𝟐𝟒𝟕𝟒.𝟔𝟐 = 𝟏. 𝟐𝟖

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CHAPTER SIX:
LEARNING EXPERIENCE

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Learning is continuous process enriches the knowledge and gives the edge in our career the
experience was wonderful which exposed me to practical knowledge of what I studied in the
class room . it gave me practical knowledge with regards to the functioning of organization its
culture values and beliefs this project work helped me to understand the working culture of the
organization in different areas.

 Gained practical knowledge regarding functions of the organization Priya industry, eco
life.
 Understood the concept of delegation of authority and responsibility co-ordination and
team work carried out in the company.
 Practical knowledge about how the motivation is to be made for the employees to get
work.

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Bibliography

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Organization Study on Priya Industries

Books
1. Previous records.
2. Magazine
3. News paper
4. Text books

Company records / documents


1. Previous year annual reports.
2. Company related documents.
3. Day to day sales ledger.

Websites
1. www.wikipedia.com
2. www.google.com
3. www.slideshare.com
4. www.scrbid.com

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