INDUSTRIAL TRAINING REPORT

ON
VADILAL
ICE-CREAM

Prepared by

name

Guided by

Academic Year

2016-2017

Class

F.Y.B.B.A.

College

ATMIYA INSTITUTE OF TECHNOLOGY AND SCIENCE

(B.B.A.)

Submitted to

Saurashtra University
 DECLARATION

I , the undersigned MR the student of F.Y.B.B.A., here by declare that this project is
my own work and has been carried out under the effective supervision and guidance of lecturer,
MR of ATMIYA INSTITUTE OF TECHONOLGY AND SCIENCE (B.B.A.).

This work has not been previously submitted to any other institution or any other
university for any other purpose.

PLACE: RAJKOT DATE:

 PREFACE

“Experience enables you to recognize a mistake when you make it again.”

This proverb is closely related with B.B.A., in F.Y.B.B.A. we are having a subject
regarding industrial training report. It is a practical subject.

The main aim of this subject is that through this subject student should learn about basic
ideas and practical knowledge of business, which is very important in B.B.A., we are assigned to
prepare a report on one of the topic of marketing.

In this report, I would like to throw some light on brand and brand position about
VADILAL ICE CREAM – Ahmedabad. To gain on the practical side and to know the real
picture I have also conducted a survey in Rajkot city and I collect the information in the best of
my ability.

PLACE: RAJKOT DATE

 ACKNOWLEDGEMENT

I am heartly thankful to all the persons who spared their valuable time and helped me a
lot in preparation of this project report. There are many people behind making of this report.
Without their help and guidance, this report would never have been made possible.

First of all, I would like to express my sincere thanks to Director of ATMIYA

INSTITUTE OF TECHNLOGY AND SCIENCE, MR and our institution for giving
me this golden opportunity. I am greatly thankful to our B.B.A. in charge MR for
giving me proper guidance and co-operation for making this report more meaningful.

I am very much thankful to keyur bhai parmar who spared his valuable time for helping
me and making my work easier by providing all the necessary and valuable information about
the company. And last but not in the least I am thankful to all the persons who directly or
indirectly helped me to make this report.
 INDEX

NO. PARTICULAR PAGE

No

1. GENERAL INFORMATION 06

2. MARKETING DEPARTMENT 27

3. HUMAN RESOURCE DEPARTMENT 39

4. FINANCIAL DEPARTMENT 53

5. SWOT ANALYSIS 76
6 FUTURE PLAN 78
7 SUGGESTION 81
8 CONCLUSION 83
9. BIBLIOGRAPHY 75
 INDEX

NO PARTICULAR PAGE
NO.
A. COMPANY PROFILE 08

B. HISTORY AND DEVELOPMENT OF 10

ORGANIZATION

C. PRODUCT AND MANUFACTURING 17

PROCESS

D. ORGANIZATIONAL STRUCTURE 23

E. TIME-KEPPINC SYSTEM 24

F. EMPLOYER SERVICES 25
 COMPANY PROFILE

BASIC INFORMATION

TYPE PUBLIC

INDUSTRY CONGLOMERATE

FOUNDED 1907

HEADQUARTERS AHEMDABAD , INDIA

KEY PEOPLE RAMCHANDRABHAI GANDHI ,

(CHAIRMAN)

RAJESH GANDHI

(MANAGING DIRECTOR)

DEVANSHU GANDHI

(MANAGING DIRACTOR)

PRODUCTS ICE CREAM, PROCESSED FOOD ,

FOREIGN EXCHANGE , CHEMICALS ,

REAL ESTATE

REVENUE 4.5 BILLION (US$72 MILLION)

EMPLOYEES 15000 approx

PARENT VADILAL GROUP

WWW.VADILALICECREAMS.COM
 ICE CREAN INDUSTRY IN INDIA

The word “ice-cream” it self is enough to ensure a sweet feeling of cool creams and makes
mouth full of thunder. The history of ice-cream industry is old enough. The first ice-cream
industry is old enough. Jacob Fusel in U.S.A. earlier it was considered as luxurious item and
consumed mainly by kings and landlords established the first ice-cream factory in year 1851. in
earlier years the ice-cream was sold in loose condition. At that time not such packs were
available but in 1904 ice-cream cones were introduced. The market then slowly increased. As a
result the seller had to find out various means for better transportation. So various types of
packets were used for transporting ice-cream from one place to another. At that time no such
refrigerated vans were available and so ice-cream was transported in thermocol boxes.

In India due to tremendous potential for expansion in urban as well rural areas and owing
to the evolution of “Fun food culture” ice-cream industry is all set to there in Indian
environment. Ice cream is very perishable project and it requires quick action both on the side of
dealer as well as company. Also due to instant demand the demand cannot be shifted to future
period. The rule “Survival of the fittest” will work for this.

The company, which owns wide and extensive distribution network, is winner. In Indian
the organized sector accounts only 15% - 20% of the market share. Small ice-cream makers fulfil
rest of the demand.

There is a major difference about ice-cream product in our country and other
developed countries. Here children mostly consume ice-cream as supplementary eatables while
they are for outing. Our people do not accept it is full-fledged food. American and western
people see ice-cream as substitute for food. So per capita consumption of ice-cream there is more
than that of ours.

With increase in infrastructure facilities the future of Rs.500 crores industries has looked
better. Earlier ice-cream only attached urban market. But now seeing vast opportunities in rural
market, the companies are now also covering rural market. Again with the entry of MNC’s.
Competition is at the peak and so now one has to be better in all four P’s of marketing Product,
Price, Promotion and Place.

With rise in per capita income the items of conspicuous are likely to increase. This can
only mean an expansion of market. Also compared to the global ice-cream worth 30 million,
consumption levels in India are rather low. Indeed a Pakistan enjoy three times the quality of ice-
cream an Indian eats, a British enjoy 50 times and an American 200 times.
 Since ice-cream consumption is based on impulse. Visibility and accessibility crucially
affect sales. Hence it is essential for the market players to be always innovative and to find out
new ways to attract the consumers. For this now a day all the companies are regularly
introducing new flavours. At present running flavours are Vanilla, Chocobar, Rajbhog,
Butterscotch, Feast, Kaju Darks, Raja Rani etc.
HISTORY & DEVELOPMENT OF VADILAL

Vadilal, the name conjures up images of ice cream laden bowls and a plethora of new flavours.
Starting from one man show with a hand cranked machine in 1926 as a small retail outlet, the ice
cream division now has a production capacity of 1 lac ltrs/day at 3 sophisticated plants, located
at Ahmedabad, Pundhra and Barrenly. These ISO 9002 certified plants for Pundhra and Barely
are established in such a way that they are in consonance with the market expansion strategies of
the division.

Vadilal has one of the largest cold chain networks in India, comprising of 12 C&F agents, 250
distributors and 15,000 retailers. The network is kept alive by a large fleet of refrigerated
vehicles. Refrigeration equipments and retail freezers are sourced from world leaders in the
technology so as to deliver quality products to the consumers, which is a commitment at Vadilal.

Vadilal has 25% of the Indian ice cream market as its share. But that's no surprise considering
that the group has the largest range of ice creams in the country in a variety of flavours, packs
and forms. The group has a product matrix of over 200 SKUs comprising of cones, cups,
candies, family and party bricks and bulk packs. Vadilal introduced the concept of "flavours of
the month" under which the company develops and markets one new flavour every month for its
customers delight.
 FOUNDER

In 1926, vadilal put the breaks on his successful curer as a ground engineer with BOAC,
and turned a businessman.

This came as a surprise to most of his colleagues and friends. But the bigger surprise was
the product he chose to manufacture ice-cream.

But young man not painting on ice. As a vocation, he had already mastered the art of ice-
cream making from his uncle. He was already a taste innovator, experimenting with jellies and
unusual ice-cream ingredients.

His high quality ice-cream immediately made an impression in the market. Soon, through
continual taste innovations and steady facility expansion, he blazed new trails, and emerged as a
prominent market presence in western India.
 Mission

“Good, truthful, clean” enterprising ethos

The founder of the vadilal began his enterprise half a century ago with a simple guideline
– Achai, Sachai, Safai (Goodness, Truthfulness, and Cleanliness)

The succeeding generations at the help of the company translated this axiom helm of the
company translated this axiom into a way of life and business. Only the finest ingredients go into
the making of vadilal ice-creams. The whole manufacturing process conforms to global
standards of hygiene and the company’s trade practices are kept totally transparent.

Based on new generation technology and in house of the company keeps formulating new
tastes at frequent intervals, and surprising its consumers. It has also diversified into other food
items, through a high profile restaurant chain.
 VISION

Quality must always precede quantity

To be leader in foods and ice-cream business leadership not as defined by the general
norms of the market place, but as defined by the company itself. This means many things.

Such as establishing & maintaining leadership in quality, not necessarily quantity.

Continuining to earn the respect of consumers and business associates, through excellent
products, fair trade practices and overall transparency:
LOGO OF THE COMPANY
 CONTRIBUTION TO THE SOCIETY

They donate Rs.1.5 on new ice-cream, the Dhanteras special offer and have collection
boxes at outlets to help the blind school or every new flavour party pack donate to the blind
school.

This year unwinds continues with the theme “Live and let Live” & Gap requests by the
Vadilal to,

Put up hoarding at your mithakali crossing I other with the message.

Put up banners with the message at all your Vadilal outlets – Ahmedabad, Rajkot, Nadiad,
Baroda etc.

Sponsor 1200 posters on the theme (Appro. Rs. 6500) with the logo of Vadilal.
 PRODUCT OF THE VADILAL

Vadilal industries has extensive reach . a major success factor has been its ability to cater to
different market segments through multiple product ranges . vadilal has range of ice creams in
the country with 150 plus flavours and they are sold in a variety of more than 250 packs and
forms . the range includes cones , bars , ice – lollies , small cups , big cups , family packs ,and
economy packs . it offers something for all tastes, preferances and pockets.

Recently the group has lanched fresh fruit ice cream with ripples under the fantasy range viz .
fresh orange fantasy , fresh mango fantasy , fresh strawberry fantansy and fresh black current
fantasy .
Company has launched cake in which latest launche is chocolate excess for chocolate flavour
lovers

It has also started powership milk which is one type of flavoured milk.

Vadilal Industries is provide the below mentioned products to their customers with a good
qualities.

CUP

CONE

FAMILY PACK

CAKE (ICE –CREAM)

CANDIES

POWERSIP (MILK)

NOVELTIES
CUP
Vanilla
Ripe Strawberry
2 – in –1
Chocolate Chips
Tuti Fruity
Real Mango
Rainbow
Fruit Bonanza
Kaju Drakish
Butter Scotch
Kewra
Jafrani Badam Pista
Fun 2000-Car.Cho
Rajbhog (Ice Mithai)
Dairy Fresh
Alphoniiso Mango
Wild Strawberry
Figs-n-Honey
FRESH FRUIT DELIGHT
Mango
Pineapples
Litchee
Sitafal
Frozen Dessert
Kool Gulab
Snowy
Kaju Lite
Scotch Lite
Yummy Mango Munch
Yummy Kesar Pista
SMALL CUPS

Vanilla
Ripe Strawberry
Frozen Dessert
Kool Gulab
Snowy
CONE

Pineapple Delight
Chocolate Drip
Yummy Butter Scotch
Chashmeshahi
Prime Kesar Pista
Almond Kulfi Cone
FAMILY PACK

PLAIN FAVOURTIES:

Vanilla
Ripe Strawberry
2-in-1

CHOCOLATE ECSTASIES:
Chocolate Chips
DAIRY FRESH
Alphonso Mango

FRUIT FANTASIES:
Real Mango
Fresh Strawberry

NUTTY DELIGHTS:
Kaju Draksh
Butter Scotch
Real Kesar Pista
Jafrani Badam Pista

FROZEN DSSERTS:
Snowy
Yummy Kesar Pista
Yummy Mango Munch
CANDIES

DANDY CANDIES:
Pencil
Mango Juicy
Juicee Orange
Kaju Candy
Litchee Dolly
Orange Dolly
Raspberry Dolly
Mango Dolly
One-up Chocobar
Nutty Chocobar
Chocolate Chocobar
Soft Spot (Chocolate)
Fantastic

FROZEN DESSERT:
Bargain
Best Chocobar
Mango Tango Dolly
Fun Bhari Raspberry
PARTY PACK
PLAIN FAVOURTIES:

Vanilla
Ripe Strawberry
2-in-1
Sweet Heart

DAIRY FRESH:
Alphonso Mango
Wild Strawberry
Figs-n-Honey
FRUIT FANTASIES:
Tuti Fruity
Real Mango
Fresh Strawberry
Fruit Bonanza
Pina Chi

UTTY DELIGHTS:
Kaju Draksh
Butter Scotch
ChashmeshahiCashew Break
Kewra
Real Kesar Pista
Jafrani Badam Pista
Rajbhog
FROZEN DESSERTS:

Snowy
Cherry Merry
Kaju Lite
Scotch Lite
Yummy Kesar Pista
Yummy Mango Munch

KULFIES

KULFI CORNER:
Kesar Pista Kulfi
Chowpati Kulfi
Kewra Kulfi
Pista Kesar Roll Cut
Kewra Roll Cut

NOVELTIES

VADILAL SPECIALS:
Heart Throb
Mini Sandwich
Sajan Sajani (Roll Cut)
Quick Sundae
Easy Sundae
August - 15
Cassatta Slice
Cassatta (Cut)
Sajan Sajani (Roll)
Vanilla Magic
Strawberry Magic
Mango Magic
NEW LAUNCHES

Recently the group has launched Fresh Fruit Ice-cream with ripples under the Fantasy range viz.
Fresh Orange Fantasy, Fresh Mango Fantasy, Fresh Strawberry Fantasy and Fresh Black Currant
Fantasy.

Three new Koolfi's have hit the market. Namely Mango Koolfi, Mava Koolfi and Pista Koolfi,
these koolfis priced at Rs.10/- is a big hit in the market place.

Two new Sundaes ---- Chocolate Sundae & Strawberry Sundae at Rs. 10/- each have been
introduced.
New Promotional Schemes:

Chocolate Sauce with Vanilla: The consumer scheme of 50g Chocolate Sauce Free on Purchase
of one litre party pack of Super Vanilla became a trend setter scheme in the market. The response
to this offer was enormous.

1+1 Party Pack Scheme Chocolate Sauce with Vanilla: The consumer scheme of 50g Chocolate
Sauce Free on Purchase of one liter party pack of Super Vanilla became a trend setter scheme in
the market. The response to this offer was enormous.

Yet another Bumper offer was the scheme of One Litre Vanilla Party Pack Free on purchase One
Litre Kaju Draksh Pack.
VADILAL 1 STEP AHEAD SERVICE

VADILAL also provide services like restaurants, parlours & other for their customers.

RESTAURENTS
Delicious experiences for the whole family

Vadilal restaurants are designed to offer wholesome gastronomic environment to the

whole family. The décor reflects the eclectic culinary spread on offer – Indian, Chinese,
continental. The whole ambience is vibrant, inviting and above all friendly and comfortable for
the consumer.

The restaurants keep consumer interest alive by offering special promotional schemes
from time to time. Such as the valued patron scheme we do not have any such scheme at the
moment.

LOCATION & FACILITY:

All vadilal restaurants in Ahmedabad and Baroda are centrally located, providing each
access to all, and offering ample parking space. The dining areas are spacious, comfortable and
interestingly deco red. In fact, if you are in a good mood, 5 vadilal restaurants is a great place to
celebrate it and if you are in a sad mood is the place to cheer up your spirits.

SPECIALITY:

Reflecting the predominant social preferences of the area, the vadilal restaurant at
DUDHESHWAR serves 100% vegetarian Punjabi, Chinese and continental cuisines. The
restaurant on Relief Road also serves 10% vegetarian food, but the accent here is on South
Indian cuisine. In fact local lore says that it serves the best Chana puri &Ice-cream combination
in the world. On the other hand, vadilal restaurant, at Baroda that all serves vegetarian
HOME DELIVERY:

This is a special service offered by a few select vadial restaurants. Such as vadilal at
AHMEDABAD &BARODA. Hot, freshly prepared and scientifically packaged food is delivered
to the consumer’s doorstep on customized delivery vehicles, by courteous delivery personnel in
keeping with vadilal’s high in house standards of food freshness, this service is restricted to
within 6 km of the restaurants vicinity.

Parlours:

Taste encounters for the whole family

To offer consumers delicious combination of snack food and ice-cream quick served in a
clean environment. They can opt for only snacks, if they wish. But the fact is, very few manage
to resist the thought of capping the food with a delicious vadilal ice-cream.
Facilities:

The most endearing speciality of vadilal parlours in the friendly, prompt service, which is
today an indispensable part of the corporate culture of vadilal. Also the highest standards of
hygiene they adhere to in preparation, serving and packing not to mention the delectable taste.

Today, vadilal parlours are the city’s most preferred places for a quick business lunch, a
friendly evening get together, or a family eat out trip.

CUSTOMER SERVICE:

Customer satisfaction – the most reliable market index.

 Organisation structure

Chairman

Board of Directors

Managing Director
(CEO)

Production Marketing Finance HRM

Manager Manager Manager Manager

 TIME KEEPING SYSTEM

Time-keeping system means how much sift in the company, time keeping

system also play vital role in this unit time keeping of staff is carried out office and

worker carried out by supervisor.

VADILAL Pvt Ltd has conduct only one working sift.

8 am To 4:30 pm

Lunchtime 12 am To 12:30 Pm

Shift time means working time is 8 hours and half hour is lunchtime.

Official working is 10:00 am To 5:00 pm

When employee’s bus enters in the company that time gatekeeper note the time of

entry and when employee bus exit the company that time note time of exit
 EMPLOYEE SERVICES

Employee services mean which types of services and facility provided by the

company. SEPL is provide following facility to their employee as an under.

Bus Facility

The company provide bus facility to its employee i.e. all girls are picked in early

morning and dropped back in the evening by company buses.

Uniform Facility

The company provides uniform to all employees along with her bonus only girls’

worker

o The supervisor level provides other uniform facility because most all

supervisors are male person.

o During the winter times company provides sweater to all employee.

o VADILAL also provide morning and evening tea with breakfast to all

employees.

o Company provides canteen facility.

o Company gives 20% bonus on salary at every Diwali festival.

o Company gives gifts to employee during the festival.

o Company also provides Tiffin box and Tiffin kit with name of VADILAL

o Company provides medical facility free of cost to the entire

employee.

o Company gives loan to employee for any purpose in period of

difficulty.

 VADILAL also provides wages on public holiday and company provides

holiday every Wednesday.

o Company arranges picnic and one day in year.

o The company takes due care of the health of an employee by

supplying pure hygienic water only through Aqua guard water

purities

o Company provides identity card to all employee purpose of freely

entry any part of the company.

 INDEX

NO PARTICULAR PAGE
NO.
A. INTRODUCTION 29

B. ORGANIZATION OF MARKETING 30
DEPARTMENT

C. PRODUCT PLANNING 31

D. MARKET SEGMENTATION 32

E. PRICING POLICIES 34

F. CHANNEL OF DISTRIBUTION 35

G. SALES PROMOTION 36

H. ADVERTISING 38
INTRODUCTION TO MARKETING MANAGEMENT

Everyday is different from its preceding day and to its next day. The

world is changing rapidly; globalization, advanced technology and deregulation of

economic sectors are developed. Therefore marketing has to meet human and

social needs as profitability. The marketing means the task of creating, promoting

and delivering goods and services to consumers and business as per their

requirements.

In short we can say that “marketing is a social process by which individuals and

groups obtain what their need and want through creating offering and freely

exchanging products and services of value with others.

 DEPARTMENT HIERARCHY

Marketing organization may be defined of determining the branches of activities

which comprising the marketing functions, growing them into sub functions.

Establishing authority relationship and providing for an appropriate mechanism for

their integration to achieve marketing department.

The different marketing activities perform by the different individuals brought

together and under the leadership of the one person by a consciousness managerial

need of marketing organization in every firm is due following stated reasons like,

many marketing function such as research, sales promotion, physical distribution

and advertisement.

Marketing manager

Marketing executive

Design engineer

Production manager

Sales manager
 MARKET SEGMENTATION

“Market segmentation is the grouping of customers according to such

characteristics as similar wants, income, age, education, geographical location or

area.”

VADILAL has divided market on the geographical basis e.g. it has divided the

market into different geographical units such as nations, regions, states, cities etc.

Bases of geographical segmentation are as under:

1. Rural

2. Urban

VADILAL has segmenting the marketing according to rural & urban area. Its main

concentration is on rural market as 60% of population of India is rural. Its main

market consists of villages in India.

 PRODUCT LINE

For product line VADILAL normally develop a basic platform and modules that

can be added to meet different customer’s requirements. Product line managers

need to know the sales and profit of each product in their line in order to which

product to build, maintain, harvest and divest.

Product mix is also called as the product line market profile.

In VADILAL, product mix has a certain width, length, depth and consistency.

 Width

It refers to how many different products lines the company means

VADILAL carries.

 Length

It refers to the total numbers of items in the mix. Here we can also talk about

the average length of line. This is obtained by dividing the total length by the

numbers of line.
 Depth

The depth of the product mix refers to how many variants are offer of each

product in product line. If any product comes in three size and two

formulations the product depth is six.

 Consistency

The consistency of the product mix refers to how closely relates the various

product lines are in end use production requirement, distribution channels or

some other way.

 PRICING METHODS AND STRATEGIES

The aim of each and every company is the maximum of profit and customer

satisfaction. The level of profit is generally depending on the pricing policy of the

company. Prices of the product are decided evaluating the return of factors of

production i.e. interest, rent, wage, and profit. Also other such as direct and

indirect taxes etc is also considered while deciding the price.

The factors affecting the pricing are as follow.

 Cost of production.

 Competition

 Quality of product

 Payment period

There are five types of price setting methods.

 Value pricing

 Target return pricing

 Mark-up pricing

 Group Pricing

 Going rate pricing

 CHANNEL MANAGEMENT

Various channels

A channel of distribution is the set of marketing activities involve the flow of

goods of services from then primary producer to the ultimate customer. The most

common route to bring the product in market is channel of distribution

Manufacturer

Wholesalers

Retailers

Consumers
 SALES PROMOTION

Sales promotion can be used for short term run effects such as to highlight

products offers and boost sagging sales.Sales promotion includes the tools for

consumer promotion, trade promotion and business and sales force promotion.

Marketing dept. also arrange seminar at various customers places as well as also

head office at Pune, Delhi, Kolkata, Chennai, Mumbai, Ahmedabad, Indore. As far

as VADILAL is concerned it takes the following steps for the sales promotions.

 It provides best quality of product. If the product is slightly defective then the

whole project is rejected. They always try to maintain the quality of the product.

 They try to provide services for maintain a team of qualified service person at

major branch offices, like Pune, Delhi, Kolkata, Chennai, Mumbai, and

Ahmedabad… In case client faces any problem with the product he may contact

any of the above branch office.

 It also provides a discount for the purpose of sales promotion. Discount depends

upon the quantum of business done with a client.

PUBLICITY

Publicity is based on the quality

 High credibility

 Ability to catch the buyers of guard.

 Dramatization.

Publicity is plays and important role in following task for VADILAL.

 Assisting in the launch of new products.

 Influencing specific target groups.

 Assisting in repositioning a mature market.

 advertising

There are many medias through which a company can advertise its
products:.
 Print media includes newspapers, magazines, mail publicity etc.

 Broadcast medias includes ads through billboard out door publicity.

VADILAL mostly advertise their products on television, in the leading newspaper,

in trade magazines, through banners and stickers. The advertising budget is

generally 5% of the total sales.

 INDEX

NO PARTICULAR PAGE
NO.
A. INTRODUCTION 41

B. ORGANIZATION OF HRD 42

C. RECRUITMENT,SELECTION AND 43
INDUCTION PROCEDURE

D. TRAINING AND MANAGEMENT 44

DEVELOPMENT PROGRAMME

E. WAGE AND SALARY 47

ADMINISTRATION

F. E S I SCHEME 49

G. MANAGEMENT OF INDUSTRIAL SAFETY 50

 INTRODUCTION TO HRM

Taking a look at the world of human beings is a rewarding experience, contrasts

about in this world. A contrast net worthy, one thing is certain. It is the people who

make an organization a success or allow it to be handed over to the board for

industrial and financial reconstruction. Who are these so-called patrons? How to

attract them? How to retain them? How to motive them? These and other much

questions need on in depth study. HRM relates to all the topics.

HRM is a management functions that help managers recruit, select, train and

development members for an organisation, HRM is concerned with the people’s

dimension in organization.

In today’s competitive world, HRM has become an essential part of business

organization. Personnel as an activity, where seen as a necessary but an important

part of the organization.

 HR PLANNING

HR planning is the process by which a management determines manpower

requirement and the means for meeting those requirements in order to carry out the

integrated plan for the organization.

In a HRP is understood as the process of forecasting an organizations future

demand for the supply of right types of people in the right number, it is only after

HRP, that the HRM department can initiate the requirement and selection process.

In a VADILAL, the personnel manager decides the volume of manpower. He

rationalize the total manpower and than decides whether to increase the manpower

or to decrease the manpower on the basis of evaluation of work, efficiency of

workers, nature of work etc.

 RECRUITMENT SOURCES

Recruitment is the process of finding and attracting capable application for

employment. The process begins when new recruitment are sought and ends when

there application are submitted. The result is a pool of application from which new

employees are selected. Thus recruitment is the process of inviting the prospective

candidate for the vacancies available in the organization.

Recruitment is done where vacant place is available in the organization. Thus each

and every adopts this process, when there is any vacant place. There are mainly

two sources of recruitment.

1. Internal sources

2. External sources

In VADILAL the first of all managers decide the nature of the job and the nature

of required jobholder. In other words first of all, the recruitment is done as per the

requirement of staff due to death of employees, retirement or resigning from the

job.
VADILAL follows recruitment process in different following ways.

1. Direct application

2. Advertisement in news paper

3. Employment exchange

In VADILAL, after getting qualifications of it as per qualification, age and

experience is done. Short listed applicants are called for a personal interview.

Interview panel consists of two or three outside experts and senior officers of the

company. And as per the result recruitment is done.

 TRAINING DEVELOPMENT

Training development is an art of increasing the knowledge and skills of an

employee for during a particular job. Training makes the material meaningful by

providing view, examples, material and visual aids.

Whereas training prepares employees for performing agent present job,

development prepares employees for future organization.

In VADILAL there is a no separate training centre. But the experts are give

training to the trainees. The different methods of training are adopted by

VADILAL follows.

1. Apprenticeship training

2. On job training

3. Shop floor training- technical staff

4. Outside seminar

5. Lectures etc.
In VADILAL the initial appointment shall be except specified otherwise on

training or probation for three months. The management may from time to time

extend or reduce such period as may be considered necessary.

The training in VADILAL is given to the employee to satisfy the following

objectives,

1. To reduce un employment

2. Decision making

3. To increase productivity

4. Creativity and problem solving

5. Interpersonal relationship

6. Leadership & development

 WAGE AND SALARY ADMINISTRATION-

JOB EVALUATION

Workers and employees are paid wages and salary for their work. To decide the

sound policy for wages & salary. It is a very crucial task & it is affected by so

many factors.

The term wages defined as, “The remuneration paid by the employees for the

holiday, daily, weekly and fortnightly service of employees.” It is also paid to

production and maintenance of blue-collar employees on daily basis.

The term salary defined as, “ the remuneration paid to the clerical managerial

personnel employees on monthly or annual basis. It also means that the rewards

paid to the white-collar employees for their services.

In the company there are two types of csategory for employees. One is managerial

staff and non-managerial staff.

Managerial staff received as per their seniority and position held. Managerial staff

as status from assistant manager, deputy manager, senior manager and general

manager.
Non-managerial staff, their salary structure and perks are declared every year as

per the agreement made between the workers and management.

In VADILAL, the employees get the salary at the 7 th of the next month. The salary

is given after adding the allowances and the deduction of provident fund and

advance pay taken. The employees must be present at the accurate time; otherwise

the pay of one day is cut off. The wages are paid as per the wage act. Salary =

basic + convenience

JOB EVOLUTION
After the selection of the employee in VADILAL ICE CREAM. they are

employed temporary. They have to go under probation period for the first six

month, after that the employee is confirmed. Some efficient engineering are asked

to sign on the bond paper they can’t resign until such years.
 E S I SCHEME

The “EMPLOYEES STATE INSURANCE ACT” (ESI), 1948 was

enacted to provide certain benefits to the employees in the case of sickness,

maternity and the employment injury and to make provision for some other matter

in relation to these. Thus the act, provides for medical attendance and the treatment

and moreover cash benefits during sickness, maternity and employment injury,

pensions for dependents on the death of the workers funeral expenses are given to

the workers family. Whenever the ESI scheme is extended the employees are

absolute of their liability under the Workman’s Compensation Act 1923 and under

Maternity Act 1961.

MANAGEMENT OF INDUSTRIAL SAFETY

Safety must be built in design stage, in production planning and in operator

training. The challenge of true of mind by efficient and regular safety training for

all levels of management and workers. The aim must be to make every individual

in industry have a more regarded not only for his own personal safety, but also for

others.

ACCIDENT PREVENTION PROGRAM IN TEXSPIN.

 Analyze accident records.

 Obtain co-operation of plant manager.

 Obtain co-operation of other head of department.

 Hold meeting of Operating executives.

 Organized educational work.

ROLE OF SAFETY OFFICER IN TEXSPIN

 Maintain accident records.

 Advice management on all safety matters.

 Supervise or advice on safety training.

 Personal plant inspection.

 Consult with other agencies on safety problems.

Here in VADILAL safety department have a central location near the factory shop

available for displaying sample of safety equipments like posters, safe practice

references equipment catalogues etc.

 ROLE OF HR DEPARTMENT

In an organization, role of HRD plays a very important role. The organization

development depends on the active role of HRD in the organization. Company’s

HRD has to play a various types of roll, like implementation of training

programmer, knowledge enrichment, job satisfaction, group responses, placement,

transfer, promotions running of training institution and so on.

In a, VADILAL the manager of HRD various out the above said activities

effectively and efficiently.

 INDEX

NO PARTICULAR PAGE
NO.
A. INTRODUCTION 55

B. ORGANIZATION OF FINANCE AND 56

ACCOUNTING DEPARTMENT.

C. FINANCIAL PLANNING 57

D. CAPITALIZATION 59

E. CAPITAL STRUCTURE: - Financial 60

Leverage and Capital Gearing.

F. MANAGEMENT OF FIXED ASSETS:- 61

(1) Capital Budgeting.
G. MANAGEMENT OF WORKING 63
CAPITAL:-(1)Management of Inventories
(2)Management of Receivables
(3)Management of Cash including Cash
Budget
.

INTRODUCTION TO FINANCE MANAGEMENT

Finance is regarded as the lifeblood of a business organization. The financial

management study of about the process of procuring of financial resources and its

judicious utilization with a view to maximize the shareholder’s wealth. Finance

management of every business enterprise is largely depending upon the efficient

management of its finance,

Finance management is concerned with the efficient use of an important economic

resource namely, capital funds.

Finance management is concerned with the managerial decisions that results in the

acquisition and financing of long term credit for the firm as such at deals with the

situation that require selection of specific liabilities as well as the problem size and

growth of an enterprise. The analyses of these decisions are based on the expected

in flow of funds and their effects upon managerial objectives.

 ORGANISATION STRUCTURE

Financial
Manager
(Director)

Administration Finance Export & Import Account

Department Departmen Department Departme
t Account
nt

Clerk Clerk Clerk Clerk

 FINANCIAL PLANNING

The finance manager and commercial manager planning with the departmental

undertakes a weekly financial planning programmed and every month the time is

reviews so if it requires any adjustment it can be made in time. It has also

borrowed capital in form of loans, deposits that consists of long-term debt.

Financial planning means the planning of finance. In the planning of finance not

only planning is done for spending the money but also planning is done for finding

and evaluating source of finance.

Source of finance

Two type of source of finance is used in IR&IL Company

[A] Internal source

[B] External source

[C] Other sources of finance

[A] Internal source

(1) Equity shares

(2) Reserve & surplus

[B] External source

(1) Secured loans

(2) Unsecured loans

(3) Deposits

It is tried to collect the fund at very cheap rates and utilized in the best possible

manner.

[C] Other sources of finance

(1) Short term

(i) Bank

(ii) Cash

(iii) Hypothecation of stock

(2) Long term

(i) Various types of term loans

(ii) Hypothecation of plant & machinery which repayment

(iii) Long term loans.

 CAPITALIZATION

Capitalization means the total value of capital stock of the company i.e. total of

equity, preference & long term debt. It is the sum total of the value of company’s

share plus the value of debentures plus the surplus it has accumulated the company

has to determine in initial stage.

According to the M.C. Shukla “Capitalization is the sum total of all funds of long

term securities assured for company as well as surplus which are not meant to be

distributed”.

A company is said to be capitalized it is earning are less in relation to its capital

investment. It is under capitalized of its earning are more in relation to its capital

investment.
 Capital Structure:

Capital structure refers to make up its organization. However it includes all the

long terms capital sources including loan, bonds, share issue etc. and the

component of capital structure. Capital Structure is the proportion of debt and

preference and equity shares on a firm’s balance sheet.

Every company should have its own capital structure; capital structure is the

permanent financing of the firm. Represented by long term debt, preferred stock

and net worth. A company can produce funds by issuing and securities. Company

should decide type & proportion of security. The optimal capital structure is

necessary to maintain financial stability.

1) Share Capital

2) Reserve & Surplus

Sr. No. Particulars Amount

1 Share Capital 3,61,48,20

2 Reserve & 7,26,05,02

Surplus 3
 CAPITAL BUDGETING

Capital budgeting can also be term as long-term investment decision.

According to R.N.Lynch “A capital budgeting consist of planning and the

budgeting of available capital for the purpose of maximizing the long term

profitability of the firm.

According to the Chates Hangren “Capital budgeting is long term planning for

making and financial proposed capital outlets.”

In fix the top-level executives take assets huge capital is invested decision

regarding fixed assets.

There are two methods to evaluate the proposal of long-term investment decision.

Payback Method

It represents the number of years required to recover the original cash outlets

invested in a project.
 Average rate of return method

Under this method average income is divided by average investment. To get

average income the profit after tax and depreciation is divided by number of

years to get average investment the total investment is divided by number of

years.

The fixed assets of TEXSPIN are as under

PARTICULAR Rs.

Gross block 12,33,04,761

(Plant, Machinery etc.)

Less: Depreciation 3,90,70,590

Total fixed assets 8,42,34,171

WORKING CAPITAL MANAGEMENT

Meaning of working capital management

Working capital means the capital, which is required for the payment of

expenditure, which is incurred by day-to-day basis.

DIAGRAM

Raw material
Cash

Work in process

Trade debtors

sales finished goods

Management of working capital is an integrate part of financial management and it

has earning on the objective of the owners wealth.

Working capital is essential to operate the fixed assets in the sales activities.

However sales do not converted into cash instantly there are 2 concept gross

working capital and net working capital

Gross working capital means current assets.

Net working capital means different between current assets and current liabilities.
 PARTICULAR Rs.

Current assets 17,85,31,406

Less: Current liabilities 11,67,26,541

TOTAL 6,18,04,865

Inventory

Inventories are the stock of the computers of this is that make up the product. In

other words it is the total cost of raw material used in manufacturing the product.

The different forms in which the inventories exists are raw material works in

progress, finished good etc.

Inventories of VADILAL as per balance sheet of Rs. 5,29,48,91

Cash And Bank

The current cash and bank balance of VADILAL are as under

YEAR Cash & Bank

Balance

2004-05 14,95,382

2005-06 76,78,539
RATIO ANALYSIS

Liquidity Ratios :

Liquidity ratios measure the ability of the firm to meet its current obligations. A

firm should ensure that it does not suffer from lack of liquidity, and also that it

does not have excess liquidity. The failure of a company to meet its obligations

due to lack of lack of sufficient liquidity, will result in poor creditworthiness,

loss of creditors’ confidence, or even in legal tangles resulting in the closure of

the company. A very high degree of liquidity is also bad; idle assets earn

nothing. The firm’s funds will be unnecessarily tied up in current assets.

Therefore, it is necessary to strike a proper balance between high liquidity and

lack of liquidity.

The most common ratios, which indicate the extent of liquidity or lack of it,

are:

Current ratio

Quick ratio

Cash ratio

Net working capital ratio

Current Ratio: Current Assets/Current Liabilities

Current Ratio of the firm measures its short-term solvency, which indicates the

rupees of current assets available for each rupee of current liability. The current

ratio represents a margin of safety for creditors.

YEAR 2005-06 2004-05

C.A 178531406 174065581

C.L. 116726541 102371325

RATIO 1.53 1.70

1.7
1.65
1.6
terms
1.55
Ratio
1.5
1.45
1.4
2004-05 2005-06
year
Cash Ratio: Cash / Current Liability

Cash is the most stringent measure of liquidity. It generally measures the liquidity

of the firm. A high ratio shows the high liquidity of the firm. In other words we can

also say that how much cash a company holds in hand to pay its liabilities.

YEAR 2005-06 2004-05

CASH+MRKT 14,95,382 76,78,539

SEC.

C.L. 11,67,26,541 10,23,71,325

RATIO 0.01 0.03

0.03
0.025
0.02
terms 0.015
Ratio
0.01
0.005
0
2004-05 2005-06
year
Leverage Ratio :

To judge the long-term financial position of the firm, financial leverage, or

capital structure, ratios are calculated. The ratios indicate mix of debt and

owner’s equity in financing the firm’s assets. The leverage ratios may be defined

as financial ratios that throw light on the long-term solvency of a firm as reflected

in its ability to assure the long-term creditors with regard to

 Periodic payment of interest during the period of the loan and

 Repayment of principal on maturity or in predetermined installments

at due dates.

Accordingly, there are two different, but mutually dependent and interrelated,

types of leverage ratios.

 Ratios that are based on the relationship between borrowed funds and

owner’s capital. These ratios are computed from balance sheet.

 Capital structure ratios, popularly called coverage ratios, are calculated

from the profit and loss account.

Total Assets Turnover Ratio = Sales / Total Assets

Total assets turnover ratio indicates productivity ratio, which measures the output

produced from the given input deployed. Assets are inputs, which are deployed to

generate production. Higher the asset turnover ratio, the higher the efficiency or

productivity use of inputs.

YEAR 2005-06 2004-05

SALES 27,08,08,102 27,49,08,797

T.A. 31,36,82,598 25,36,26,177

RATIO 0.86 0.978

Profitability ratio:

A company should earn profits to survive and grow over a long period of time.

Profit is the difference between revenues and expenses over a period of time. The

financial manager should continuously evaluate the efficiency of company in term

of profits. The profitability ratio is calculated to measure the operating efficiency

of the company. Besides management of the company, creditors and owners are
also interested in the profitability of the firm. This is possible only when the

company earns enough profits.

Generally, two major types of profitability ratios are calculated:

Profitability in relation to sales

 Profitability in relation to investment

Gross Profit Margin = Gross Profit / Sales

The gross profit margin reflects the efficiency with which management produces

each unit of product. This ratio indicates the average spread between the cost of

good sold and the sales revenue.

YEAR 2005-06 2004-05

G.P. 4,86,95,636 4,36,46,539

SALES 27,08,08,102 27,49,08,797

RATIO 17.98 15.88

 18
17.5
17
terms16.5
16 Ratio
15.5
15
14.5
2004-05 2005-06
year

Net Profit Margin = Net Profit / Sales

It indicates the management’s ability to operate the business with sufficient success

not only to recover from revenues of the current period the cost of merchandise or

services but also the expenses of compensation to the owners for providing their

capital at risk. This ratio shows that the earnings left for shareholders as a

percentage of net sales.

 YEAR 2005-06 2004-05

N.P. 2,23,55,010 2,11,30,017

SALES 27,08,08,102 27,49,08,797

RATIO 8.25 7.68

8.4
8.2
terms
8
East
7.8
7.6
7.4
7.2
year
2004-05 2005-06
 FUTURE PLAN

Every company has a future plans, because if we don’t know what will have to be
achieved in future, we cannot make planning.

The future plans of the VADILAL industry are as follows;

} The company is planning to produce the other products like more & more items
of milk etc.
} The company is also planning to set up another unit of same kind.
} company has already entered in production of ghee and flavoured mik
And is trying to launch lassi very soon
 SUGESSTION

VADILAL has good reputation in the market. There is no more

need of suggestion to VADILAL.. as all staff of unit is skilled and aware

about its duties and responsibility.

As suggestion I would like to say something for the firm, that by

doing customer surveys, they should try to reach in the market in which they

have not stepped before and thus, try to increase the sales. They should give

more developed based trade fair etc. to reach maximum target customers.
 CONCLUSION

Although VADIAL is old company,it achieved large market in the ice-

cream world. We can conclude that it has got a bright and delightful future. It has

also been successful in establishing total quality assurance system that means the

requirement of customers exactly.

labor force is also engaged in the production process. It use modern machine on

one hand and labors on the other hand; tries to keep balances between two ‘m’ man

and management.
BIBLIOGRAPHY

BOOKS

Marketing Management : Philip Kotler

Human Resource Management : Gary Dessler

Production Management : Chase – Jacobs - Aquilano

Finance Management : Prasanna Chandra

Web Site

www.vadilalicecream.com

www.google.com

www.answers.com