AN ORGANISATION STUDY REPORT

AT

RAJ MILLING INDUSTRY, MUNGELI

Submitted in partial fulfillment of the requirements for the award

of degree of Master of Business Administration

Submitted by

ARPITA ARTANI

USN: 19MBARB0014

Under the guidance of

DR.J.POORNIMA
Asst Professor

Jain (Deemed-to-be University)

Bangalore.
 2020

DECLARATION

I hereby declare that the Organisation Study Report undertaken by me at RAJ

MILLING INDUSTRY, MUNGELI, under the guidance of Dr. J. POORNIMA,

Jain (Deemed-to-be University), Bangalore is an independent work.

The report is towards the partial fulfillment of the Master of Business

Administration course of Jain (Deemed-to-be University), Bangalore for the

batch of 2019-21.

Bangalore

Date MS. ARPITA ARTANI

DR.J.POORNIMA
Professor
Jain (Deemed-to-be University)

CERTIFICATE

I certify that this Organisation Study Report undertaken at

RAJ MILLING INDUSTRY, MUNGELI

And submitted to Jain (Deemed-to-be University) in partial fulfillment of the

requirements for the award of

Master of Business Administration

is a record of independent study carried out by

MS. Arpita Artani

Under my supervision and guidance

This work has not been submitted previously to any other College/University

Bangalore Dr. J.
POORNIMA

Date Faculty
Mentor
 CERTIFICATE

This is to certify that the Organisation Study Report under taken by

MS.ARPITA ARTANI, USN:19MBARB0014 at RAJ MILLING INDUSTRY,

MUNGELI from 26.12.2019 to 10.01.2020 is a bonafide work submitted

in partial fulfillment to the Master of Business Administration course of

Jain (Deemed-to-be University),Bangalore for the batch of 2019-21.

There porth as been approved as it satisfies the academic requirement

in respect of Organization Study Report prescribed for MBA course.

DATE: Dr. Manita D Shah

Associate Dean
 RAJ MILLING INDUSTRIES

Contents :-

Chapter 1 :-

1.1 General Information

1.2 Industrial Background Of The Study
1.3 Origin Of The Industry
1.4 Growth Of The Industry
1.5 Present Status Of The Industry
1.6 Leading Players
1.7 Future Prospects Of The Industry

Chapter 2 :-
2.1 About The Company
2.2 About Manufacturing Units
2.3 Raj Mill Industry Incense
2.4 About perfumes and fragrances
2.5 Fragrance You Desire
2.6 About Network Of Company
2.7 PEST Analysis
2.8 Porters five force model
2.9 SWOT Analysis

Chapter 3:-
3.1 Organization Structure
3.2 System
3.3 Style
3.4 Skill
3.5 Strategy
3.6 Staff
3.7 Shared Value

Chapter 4 :-
4.1 Marketing
4.2 Finance
4.3 Production
4.4 Production Process
4.5 Human Resource
4.6 Channels of Distribution
4.7 Quality

Chapter 5 :-
5.1 Findings
5.2 Conclusion
5.3 Recommendation
5.4 Learning outcome
5.5 Reference
5.6 Bibliography
 ACKNOWLEDGEMENT

I wish to take this opportunity to express my sincere expression of gratitude to

each and everyone who helped me in the completion of this work.

First of all I thank god for giving me all the grace and assistance throughout
my work.
I am very glad to express my gratitude to Dr. Manitha D Shah, Associate dean
of Jain (deemed to be university) for her help in the study.

I would like to extend my gratitude to Dr. J. POORNIMA, associate professor,

Jain (deemed to be university) for her valuable suggestions, advice and
encouragement throughout the course of this work.

I owe my gratitude to Mr. Raj kumar Artani , Owner of RAJ MILLING

INDUSTRY , for his constructive criticism and constant encouragement during
the study.

I also express my gratitude to the employees of the organization who are very
cooperative and friendly towards my study

ARPITA ARTANI
INTRODUCTION TO ORGANIZATION STUDY

Organizational studies is "the examination of how individuals

construct organizational structures,

Processes , and practices and how these, in turn, shape social relations and
create institutions that ultimately influence people".

Organizational studies comprise different areas that deal with the different
aspects of the organizations, many of the approaches
are functionalist but critical research also provide

alternative frame for understanding in the field. Fundamental to the study of

management is organizational change.

With the recent historical turn, there is growing interest in historical

organization studies, promising a closer union between organizational and
historical research whose validity derives from historical veracity and
conceptual rigor, enhancing understanding of historical, contemporary and
future-directed social realities
 CHAPTER-1

INDUSTRY PROFILE :
1.1 GENERAL INFORMATION: -

Agarbattis (incense sticks) form part and parcel of the traditional Hindu
practice of offering prayers in temples and other places of worship, In modern
days, perfumed sticks are also used in houses and in other public places as
air-fresheners and/or mosquito repellents. The demand for agarbatti is
increasing both in the domestic and export markets because of the
improvement in quality and increase in the types of products. India is the
largest producer of agarbattis in the world.

1.2 INDUSTRIAL BACKGROUND OF THE STUDY: -

Industrial development in India has occurred mostly to meet increasing urban

consumer needs and to support the growth of the vital agricultural sector. The
traditional home based enterprises have also been simultaneously
experiencing steady growth, primarily because of the influence of market
forces and also because of multiplier effects. Cottage industries have slowly
changed to rural cottage or semi-urban micro-enterprises with limited
assistance from government. Agarbatti making is one such industry. It has
responded well to increased demand for its products both in rural and urban
areas, mainly because of the continued availability of cheap labor force
dominated by women and children. At the same time, greater advertising
costs and quality improvement have pushed up the prices.

Agarbatti industry is gradually developing a wider base. Of the total domestic

sales of Rs 7.1 billion (approx. US$ 198 million) in 2009/10, South India
accounted for 35%, West 30%, North 18% and East 17%. Almost two-thirds
of consumption took place in rural areas (61.23%). The poor (low-income
group) purchases about 46% of the value of the agarbatti compared with the
higher income customers who buy 54%. However, categorizing purchases
into five income classes shows an inverse relationship between income and
the purchase of agarbatti. Existence of negative income and price elasticity
may be in play. The factors influencing purchasing decisions are: the quality,
fragrance, brand name preference and cost.

Rising demand for the products and earning of hard currency has led the
agarbatti industry to orient itself increasingly towards country.

1.3 ORIGIN OF THE INDUSTRY: -

The origin of using aromatic substances can be traced back to the Stone Age
or probably even before that. Let’s take a look at how incense has influenced
cultures across the world!

Indians often considered the home of incense; it is eulogized in the Vedas,

back in the era 5000 B.C. The traditional well-known scents of ancient India
were Jasmine, Rose, Sandalwood, Champa and Cedar & Musk. Ancient
Sanskrit texts contain many beautiful descriptions of festive occasions when
incense was burned in the homes and streets. Fragrant waters were sprayed
on the thorough fares and scented flower garlands adorned and decorated
buildings and entrance ways. In fact, flowers, which have deep spiritual
connotations in Hindu philosophy, are among the chief sources of incense in
India. Along with flowers; incense sticks and dhoop are a part of the 16
essential offerings in the Hindu ritual – the others being betel leaf, betel nut,
camphor, cardamom, cloth, clove, diya (lamp), grain, naivedhyam (a mix of
nine offerings), sandalwood paste, sweets and water.

Indeed, fragrance has played a dominant role in Hindu religious rituals since
Vedic times and is intimately linked to the havan or yagna i.e. the sacrificial
fire. Offerings or oblations consisting of aromatic and medicinal herbs, resins,
barks, leaves, exudates (gums which flow from trees) twigs, roots & seeds
along with foodstuffs and ghee were offered to Agni, the god of fire who,
according to mythology, carried them to the celestials. This was done to
appease the gods for ushering in prosperity or avoiding disaster. The
emanating fumes with their unique aromatic properties purified the
environment and had a vitalizing and invigorating effect on individuals,
besides acting as a natural disinfectant. They were said to ward off evil spirits,
alleviate anxiety and create an aura of tranquility and help in experiencing the
divine presence. In fact fragrance is considered as a divine attribute and is
said to manifest the presence of gods as well as gratify them.

It is this dhoopa aradhana which has transformed over the ages, for
convenience & practical reasons, into the present day agarbattis. Agarbattis,
also known as joss sticks, incense sticks or prayer sticks, are today used in all
temples and domestic offerings by millions all over the world.
Burning of incense has been an integral part of all ancient civilizations.
Fortunes were spent on incense and trade routes established with incense in
mind. Among the most important ancient fragrances were Frankincense
(Olibanum) and Myrrh, but the resins of various other plants have also been
collected and traded since 3000 B.C.
Gums and resins of aromatic trees were imported from Somalia in the Arabian
Peninsula to ancient Egypt to be used in religious ceremonies. The tomb of
Tutankhamun in the Valley of the Kings at Thebes was found to have huge
quantities of perfumes, oils and incense surrounding his mummy. For
Egyptians, incense held a direct connection with the dead. Each type of
incense had a specific purpose and effect.

The Babylonians used incense extensively while offering prayers or divining

oracles. It was imported into Israel in the 5th century B.C. where special gold
altars were erected for it in the ancient Temple of Israel. According to one
theory, it spread from there to Greece, Rome and India.
The sophisticated Greeks appreciated aromatic sources such as the
turpentine tree, myrrh, frankincense and cinnamon. Enormous amounts of
money were spent on these exotic imports. These were burnt as oblation & for
protection..

In Rome it was an important element in public and private sacrifices,

especially in the worship of the emperor. The Old and New Testament refer to
the extremely powerful Resin Drop Incense, whose recipes were given
through Voice or Vision e. g. Moses was given recipes by the Creator during
his encounters on the Mount. It is well known that when Jesus was born,
frankincense and myrrh were presented to him along with gold by the three
wise men of the East. Today Roman Catholic as well as Protestant and the
Eastern Orthodox Churches use incense at mass and in many other rituals.
Native American Indians offered tobacco, sage, junipers, cedars and
mugworts in their rituals, as documented from their first encounter with
Europeans in the 15th and early 16th centuries. Descendants of the Mayas &
Aztecs offer copal, an aromatic resin even today in their worship.
1.4 GROWTH OF THE INDUSTRY: -

The availability of incense sticks in the present form, to a large extent, has to
be ascribed to the enterprising nature of the Hindu community, mainly from
the south India. It was they, who started making use of bamboo stick as the
core, and a gummy wood powder as the binding medium to apply the mass to
these sticks by hand-rolling process. They had an intimate knowledge of
perfumery materials like Civet, Musk, Saffron, Cloves, Cassia, Agar wood,
Sandalwood, Gum, , Halmaddi Etc., Dry flowers and roots like Rose and
Vettivert, leaves like Davana, Patchouli etc. besides attars of Rose, Sandal,
Khus and Hinawhich they used to produce excellent incense sticks of reputed
qualities. One factor which has remained constant where this industry is
concerned has been the fact that each individual manufactures considered his
product to be unique and different. Each incense stick has always been hand-
rolled by the individual without in anyway using any mechanical device in its
manufacture. But today some companies are using machinery for
manufacturing of incense sticks.

India’s exports of agarbattis in 2009-10, by 21.68 per cent when the same
reached a level of Rs. 247.42 crore over Rs. 203.33 crore in the previous
year. Country-wise export trends reveal that USA continues to be the largest
market. There was a phenomenal growth of 39.54% to this market during the
period-exports having touched a figure of Rs. 20.57 crore as against Rs.
25.49 crore.

1.5 PRESENT STATUS OF INDUSTRY: -

The State of Chhattisgarh and especially the Raipur region is recognized as a

pioneer in the activity of agarbatti manufacturing. The region has a natural
reserve of forest products especially sandalwood, which provide for the base
material used in production. Due to the simple manufacturing process and a
huge market potential, there are a large number of producers existing in the
market. This has led to a scattering of this activity throughout India. At
present, there are a number of small manufacturers, who produce cheap and
low quality agarbatti and this has created marketing problems for quality
producers. Apart from the local competitors, some MNCs too have entered
the market.
1.6 LEADING PLAYER :-

COMPANY Brands VARITIES REMARK

NAME

Hari Darshan Hari Darshan export quality

Sevaashram Pvt,
Ltd. Delhi

Shrinivas Nag Champa (Available in15 Caters mostly

Sugandhlaya, Agarbatti Gms, 40Gms, the
Bangalore 100Gms, domestic market
250Gms,
500Gms, 1 kg,
and 8 Sticks
Square packing)
Long incense
 Sandesh Gopala incense 8 Sticks Square Caters to the
Agarbatti Co. Master gold Packing domestic
incense 20 Sticks markets
Hexagonal with nominal
Packing exports

Shree Balaji Bharat Darshan Among the top

Indistries. Orissa incense,Spritual 10
Guide, Precious and most popular
Chandan, asmine, in eastern
Indian Spice & regions
Rose Pouch eries,
Sugandha
ncense,
Sugandha hringar

NRR Group. Cycle Brand, 10 per cent of

Mysore Cycle dhoop, turnover from
Flute Brand, Lia exports. Total
Brand, Naivedya, turnover is Rs
Rhythm dhoop, 240 crore
Wood,
Parampara,
Yagna,

1.7 FUTURE PROSPECTS OF THE INDUSTRY :-

Customs in incense manufacture have changed little over the centuries

except in the range of now that couldn’t be offered before. Examples include
green tea, candy cane, blueberry, pumpkin pie, and gingerbread incense.

The custom of use of incense is also likely to change in the future and in
Western culture. In India, two or three sticks of incense may be burned every
day in a typical home, while, in the United States, users of incense may only
burn one stick a week. Incense-makers hope the variety, effectiveness, and
low cost of incense sticks will make them more popular than air fresheners
and room deodorizers made with artificial perfumes. Also, the popularity of
meditation and aromatherapy have spurred incense sales among clients who
want their rare moments of quiet and relaxation to be healing and beautifully
scented.

It is true that a lot of work has to be done to save the industry. This industry
has the potential to retain its low and high-end markets and huge employment
base with the help of proper planning. With the eliminating of trade barriers,
Global markets open up an ocean of opportunities for the industry, especially
considering the fact that apart from a few Asian countries, the rest of the world
is ignorant about the product. Even now about 20% of the total production is
India

There is a lack of manpower around the world to produce such a labour-

oriented product. „Eco-friendly‟, „User-friendly‟, „Handmade‟, „Therapeutic‟,
these words can serve as the banners to attract the western markets. The
name of Raipur itself works as a brand to catch the India’s attention as a
pioneer in agarbatti manufacturing Inputs in bio-technology, tissue culture
and other R&D can ensure a positive growth for the industry and create high-
value added products that are required for export markets, thus helping
thousands of labourers to attain a better socio-economic status.
 CHAPTER-2

COMPANY PROFILE

OF

RAJ MILLING INDUSTRIES

2.1 ABOUT THE COMPANY:-

Raj mill Incense, a prime venture of raj milling Industry, is one of the top
agarbatties brands in the Indian market. Raj mill Incense was launched in the
year 1992 by Rajkumar Artani, the visionary founder of Raj milling industries ;
his business acumen, experience and enthusiasm has given the product its
strength to stay steady at the top. Since the year 1998 the overall
management of the company has fallen in to the hands of young Turk, Anmol
Artani the generation next of Raj Milling Industries.. And now brand Raj mill
Incense proudly treasures, over 20 years of prosperous history, in which time
the brand has gone through exceptional evolution with constant research and
development to unravel products that have become market favourites. With a
dedicated consumer base, the popularity of Raj mill Incense has consistently
grown over the past 20 years. Encouraged by this growth, Raj mill has taken
its products far and wide in the Indian markets with overwhelming success.

The Government of Chhattisgarh has recognized Raj mill an incredible

success story by conferring on Raj milling Industry the ‘State Export
Excellence Award 2009-10’presented by the honourable Chief Minister of
Chhattisgarh Dr. Raman Singh himself.

RAJ MILLING INDUSTRY ALSO AWARDED WITH

 Handicrafts Export Awards by Export Promotion Council for

Handicrafts.
 Outstanding National Export Performance Award towards its
excellence in exports in the year 2014-15

2.2 ABOUT MANUFACTURING UNITS

Raj mill has a total of 88400 Sq .Ft of Production unit operating in location in
Mungeli Chhattisgarh
A 10,000 Sq.Ft printing unit with 6 high-end colour offset machines and a
packaging box manufacturing unit .From the blending of perfumes to
packaging industry, every single process is completed in-house. This end-to-
end solution of products, from raw material to store isles is a clear market
advantage Raj milling Industry has a strength of more than 50 employees in
industry

DIVERSIFYING PRODUCT RANGE TO MEET THE VARIED

DEMANDS OF INTERNATIONAL MARKETS HAS MADE RAJ MILL
INCENSE A FAVOURITE BRAND OVERSEAS.

Mr. Raj kumar Artani, an astute businessman and started the incense making
unit of Raj milling Industry when he realized that the market was not
completely covered. Owing to, either lack of incense makers or the products
not living up to market standards; the demand was higher than the supply.
Mr.Raj kumar wanted to bridge that gap by capturing the space. The business
idea, coupled with the sentimental value attached to the product (considered
to give a divine boost to invocation), made Mr.Raj kumar more determined to
enter this market. However, over the years the use of incense has diversified
and Raj milling Industry, With an informed awareness and a nose for
innovation, they have been developing products to meet every need. They
have become one of the pioneers in manufacturing products for the future and
that is one of the reasons theinter national market is embracing the brand with
eager anticipation.

As the use of incense has broken the barriers of religion and culture, so has
Raj mill Incense come up with a product range that meets every need and
keeps everybody happy and satisfied. They manufacture a wide range of
quality products to cater to vivid demands like, incense sticks for India in the
Middle East and many more, as thedemand may be.
2.3 RAJ MILL INDUSTRY INCENSE:-

Raj milling industry is the manufacturer of one of the most favourite incense
brands among consumers in the overseas markets. The demand for Raj mill
Incense is so high internationally because they make local consumer specific
products. They don’t just cater to the needs of Indians
living abroad, rather they research and survey the market they want to enter
and develop fragrance as well as merchandize that suits the practices, needs
and demands of the native consumers.

2.4 ABOUT PERFUME AND FRAGRANCES:-

Raj mill sources the best of the Aromatic chemicals & Natural essential oils
from the best companies in the India . The Aromatic chemicals &Natural
essential oils are procured from India The USP of the Directors is their
knowledge in blending presumes for agarbatties as per the requirement of
consumers, vide ranging from Floral to Fruity fragrances. The Directors of the
company are technically associated with perfumery companies like IFF
(International Flavours & Fragrances), Givaudan, Keva Fragrances (S Kelkar
And Company Ltd) & many more for new and innovative chemicals, flavours &
Aroma Ingredients.

2.5 FRAGRANCE YOU DESIRE :-

Raj milling Industry has more than 20 fragrances which is most essential for
Indian market. Some of the sample fragrances are as below :
LavenderLotus
Green apple
Apricot
Coconut
Raspberry
Strawberry
 Fortune
Intimate
Little angel
Opium
Taj Mahal
Tropical forest
Aloe Vera
Amber
Chandan
Cinnamon’
Life
Musk
Khushi

2.6 ABOUT NETWORK OF COMPANY :-

Raj milling Industry is well established in Chhattisgarh where it has

1,000+Distributors and 40,000+ Retail network which makes Raj mill one of
the top company in the Agarbatties Industry.

Raj milling Industry Markets its products in many states across India…i.e. in
Andhra Pradesh, Assam, Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand,
Madhya Pradesh, Maharashtra, , Kerala, Orissa. Uttarakhand & West Bengal.

2.6 PEST ANALYSIS

 Political

1.Tax regulations:-

Before it was VAT of 14.5% and now due to change from VAT to GST now it
is 5%. Due to change in policies the rates has been changed
 2. Import restrictions:-

If there is changes in any regulation about quality and quantity of good the
producer cannot export the produced product to other country.

3. Government regulation in trade union and Agreements :-

If there is new agreements with another country they but some limit on
exports that will effect the business and reduces the profits for the company

4. Government stability and likely changes:-

Due to the conflicts between various political parties there might be changes
in the rules and regulation. If the government is stable then there will be some
changes.

 Economical

1.Exports:-

The export sector is growing at 15-20% as demand growing in a few Latin and
American countries. Officials said adding the domestic demand is expanding
at the rate of 3-4%.

2. Weather:-

Due to changes in the climate the supply and demand will changes according
to this the production will also change.

3. Price fluctuation:-

Due to some changes in the price that factors of production will change that
will lead to change in demand in the market by the consumers.

4. Exchange rate:-

Change or fluctuations in the exchange rates would a factor which would

affect the industry.
 Social
1.Buying Habits:-

Due to some factors the buyer will change the company to see the difference
that is there in the products and compare. And will use the new products
which is launched in the market.

2. Lifestyle:-

Sometimes the lifestyle of the individual customer will depend on the attitude,
way of life and values.

3. Population growth rate:-

The growing rate of population will effect the demand of the product in the
market and then there will be changes in the supply also.

 Technological

1. Rate of technology changes:-

Before the agarbatti factories where making agarbatti in hand now there is
machines to manufacture.

2. Spending on research and development:-

Due to technological changes the R&D team will reach lot of customers and
can understand the market well and produce the goods what customer
demand.

3. Access on Newest technology:-

The firm must look at the upcoming technology and they must get updated
and make there employees go get ready for the changes and move forward.

2.8 PORTERS FIVE FORCE MODEL:-

BARGINING POWER OF BUYERS:- High

1.Number of customers :-

As the customer is high in the market, they can`t keep high prices they must
maintain the price and keep the prices affordable.

2. Size of each customer order:-

They must find the demand of there product in the market and analysis the
market.

3. Differences between competitors:-

There will be differences in many factors like price, promotion and others, so
they must find the differences in the market.

4. Switching costs:-

They must but decent pricing strategy to attract the customers and make
there sales high and make profit maximization.

5. Buyers ability to substitutes:-

As there are high manufactures in the market the buyers have huge choice
so the company must make sure that they must maintain the customer base
in the market.
BARGAINING POWER OF SUPPLIERS:- High

1. Number and size of suppliers:

- If there are high suppliers in the market then the prices of the raw material
will be less, if there are less suppliers then prices will be high.

2. Uniqueness of each supplier products:-

Each supplier raw materials will differ in the quantity of the raw materials and
quality of the raw materials.

THREAT OF SUBSTIUTE PRODUCT:- High

1 .Number of substitute:-

There are huge number of producers in the market so there are high
substitute to the customers and they can choose for the products.

2. Relative price performance of substitutes:-

As there are huge substitutes the prices must be maintained by the producer
and they must maintain the consumer base.

3. Switching costs:-

They must maintain the cost and the cost of the goods must be reasonable for
the customers.

RIVALRY AMONG EXISTING COMPETITORS:- High

1.Number of competitors:-
As there are huge manufactures in the market the producer must maintain the
customers base.

2. Brand loyalty:-

Some customers will buy the particular brand only, they will not switch to other
brands in the market.

THREAT OF NEW ENTRANCE:- High

1.Capital requirements:-

There will be high cost occurred while setting up the unit because the market
huge and the customers are high.

2. Government policies:-

formalities of setting up business is big so it is not easy to set up a new

business.
2.9 SWOT ANALYSIS :-

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a business venture. It
involves specifying the objective of the business venture and identifying the
internal and external factors that are favourable and unfavourable to achieving
that objective. A SWOT analysis must first start with defining a desired end
state or objective. A SWOT analysis may be incorporated into the strategic
planning model.
 Strengths:

1.Non polluting industry:-

This industry will not pollute the environment this will be based on man
power.

2 .No electric power requirement :- This industry is majorly depend up on the

labours and part time workers who will work.

3. Reputed supporting institutions present:-

There are many reputed company`s are there some are Cycle agarbathi, Hari
Darshan etc

4. Agarbatti is a fast moving product with a good shelf life:-

Agarbatti is know as FMCG products because that is used everywhere in the

country and has separate shelf in the market.

5. Large labour base:-

Amount of physical ,mental and social efforts used to produce good and
services are more. Large number of manpower and services is need to turn
raw materials into finished goods.

6. Exposure to Export markets:-

This industry is high on exports because they are high in demand outside the
country.

7. No power requirement:-

As this is manufactured using the man power there is be no use of electricity

in the factory.

8. Introduction of GST have reduced the tax rates from 14.5% of VAT to 5%
that is a advantage for the industry.

9.10 different fragrances

 Weaknesses:

1.Less promotion as compared to others items:-

There is no much T.V ads in the market which is promote the product like
other industries do.
2. Automation is in bamboo cutting only:-
The major weakness is lot of trees are cut down to manufacture the product.
3. Lack of mutual trust between labour and brands:-
As there is some fear of new entrance and due to high availability of labour
there is non trust with the labours.
4. Decrease in raw material availability:-

Due to some reduce in the raw materials there will be reduced in production
and no work for labours.

5. Customer awareness is very low amongst low-end producers:-

Due to no ads in the media the low end manufactures will not get much
demand for the product they produce.

 Opportunities:

1.Large export market potential:-

Due to high demand in the outside market they have huge export opportunity
to grow the company and increase the export.
2. Scope for innovations and R&D:-
Because of huge market they can try new things and innovation in the
market.
3. Scope for innovations and R&D:-

Due to high consumer market they can try new innovations and ideas in the
market and check the customers likes and dislikes.

4. Free trade regime can provide better raw materials for better price.
 Threats:
External conditions which could do damage to the objective(s).
Identification of SWOTs is essential because subsequent steps in the process
of planning for achievement of the selected objective may be derived from the
SWOT.

1.Global competition:-

there are huge competitors in the market which is the threat and some new
and other exporters.

2. Forest based raw material supply becoming scarce:-

As the raw material are bamboo tree there is less resources.

3. Youths are not performing pooja nowadays

McKinsey’s 7S model:

The 7s Framework of McKinsey is a management model that describes 7

factors to organize a company in a holistic and effective way. Together these
factors determine the way in which a corporation operates.

There are 7 basic dimensions, which represent the core of managerial

activities. These are the „levels‟, which executes use to influence complex
and large organizations. Obviously, there was a concerted effort on the part of
the originators of the model to coin the managerial variables with words
beginning with the letter S. So as to increase the communications power of
the model.
 CHAPTER :- 3

ORGANIZATION DESIGN
 3.1 ORGANIZATION STRUCTURE : -

The organization chart and accompanying baggage that show who reports to
whom and how tasks are both divided and integrated.

Since Raj milling industry is a private ltd company. The structure of the
organization is democratic. Major decision however is taken is at top-level
management of the company.A democratic company structure has several
common traits.

 It is transparent.

 People know who they report to and for what.

 Every level of the organization has leaders.

 Initiative and innovation are encouraged.

 Meaningful work motivates employees.

3.2 SYSTEM :-

Formulation of agarbatti (incense stick) is an ancient art. The finest

ingredients are blended in exact proportions so that the same unique
fragrance bouquet is obtained every time. Traditionally handmade, the batties
are rolled by hand under strict supervision.

Quality always has been an integral part of our organization in all processes
during product realization. Quality checks are done at material inward, in
process and finished goods stages through statistically designed sampling
plans. Quality checks at vendor premises daily, is our norm for out-sourced
processes.

Our AWARENESS on the importance of quality and introduction of FORMAL

methods for quality control and improvement has been an evolutionary
development over 6 decades.

3.3 STYLE :-

Style is one which top managers can use to bring about organization change.
The aspects of business most emphasized by members of the top
management tend to be given more attention by people down in organization.
Reporting relationship may also convey the style of the organization.

3.4 SKILL :-

The qualified personnel with required skills and competency are recruited and
selected for the required designation.

For example: for recruiting and selecting the manpower required by the
Marketing department the
criteria would be MBA (Marketing) and who have the capabilities and
competencies to handle the functioning of work smoothly.

3.5 STRATEGY :-

The strategies being adopted by the company:

Advertisement in a traditional and devotional way like (Bhagawah hai,

Devaru eddare ).

Sponsoring Third umpire ship in International cricket matches.

3.6 STAFF:

Staff elements is concerned with what type and how many employees and
organization will need and how they will be recruited, trained ,motivated and
rewarded.

3.7 SHARED VALUES :-

The common feeling among the people in the Raj milling industry is that they
are meeting the demands of the customers and fulfilling the expectations in
the form of productions and its variability. The employee also have belief that
they are giving at the best possible price to milk they procure from farmers.
Value of Group:

Honesty
Discipline
Transparency
Cleanliness
Total quality
Self-reliance
Co-operative free politics
Respecting others opinions, emotions, thoughts, and feelings
 CHAPTER :- 4

FUNCTIONS OF ORGANIZATION
4.1 MARKETING

There are about 350 employees in marketing department. The structure

is been given in the organization design.

4.2 FINANCE

This department also includes accounts department. The accounts

department will prepare the budgets for each quarter. Budgets are Sales
budget, Production budget, Purchase budget & Cash budget. The
accounts department will have direct contact with the auditors of the
firm. The accounts department will check all the accounts related work
like preparation of Profit & Loss statement, Balance Sheet, Cash flow
statement and other related to financial statements. They also do the
monthly compliance like GST, TDS etc. The finance department will make
all the payments & receipts of the company. The billing is done by the
accounts department & all the invoices & order reports will be
maintained by this department only.

4.3 PRODUCTION

This department will produce the agarbhatti’s based on the order of

both the domestic sales & export sales which will be given by the
marketing department. The planning will be done in such a way that,
sales department will first receive the sales order, then the order list will
be sent to the production department, then to the purchases
department to check if there is shortage of the raw materials. If yes,
then the purchase department will place the order for the of the
required raw material. Then production process will be done based time
& the raw materials received.

4.4 PRODUCTION PROCESS :-

MACHINES USED FOR MANUFACTURE

FINISHED PRODUCT
4.5 HUMAN RESOURCE

The human resource function is one of the most important function. The
human resource manager will get the request of employees from each
of the department. The human resource will first check with the
resumes which were rejected before. Then in case if the resumes meets
the requirement then the employee calls the person for the interview. In
case the requirement is not met, then the human resource employee
will publish the requirement in the newspaper & all sources in terms of
advertisement. The payroll function is also taken care by this
department only.

4.6 CHANNELS OF DISTRIBUTION :-

Stage 1 :- Producer

Stage 2 :- Clearing and forwarding

Stage 3 :- Distributor or agents

Stage 4 :- Retails and whole seller

Stage 5 :- Consumers
4.7 QUALITY

 The customer is the sole focus of the business.

 Company constantly Endeavour towards customer satisfaction by
delivering products and services of the best value and quality
 Company strives to honours our commitments, implied, to both,
our internal and external customer.
 Company stress on integrity, transparency and consistency in all
our dealings.
 Company always strives to have a trusting, mutually beneficial and
long-lasting relationship with our business associates.
 Company seeks to maintain a warm, positive and friendly work
 Company empowers people at appropriate level to achieve their
goal.
 Company recognizes and reward merit and performance.
CHAPTER:-5
FINDINGS

 Technical-know- how is simple.

 Sophisticated equipment are not required.
 Implements/tools used are simple, portable and not costlier.
 Large capital investment is not required.
 Initially the industry can be started with a small investment even
at the residence of the artisans.
 Eco- friendly
 Highly labour- intensive industry
 No dependence on power supply.
 No work related hazards.
Conclusion :-

The organisation study which was conducted in RAJ MILLING INDUSTRY,

we came to know about various analysis of models like Porters five force
model, PEST analysis and SWOT analysis.

We came to know about the organisation structure and functions of the

company and various business activities.
RECOMMENDATIONS

 Advertising can be done in like, Radio, and Magazines. .etc. . . . . On

the whole effective advertising in the media is necessary. The
 advertisement should develop a purchase intension in the minds of the
viewers.
 To make the buyers more loyal towards the brand, give more discounts
and offers have to be provided for e.g. if you can give a coupon inside
the pack of Agarbatti, if ten coupons are collected one pack can be
given free or any small gifts can be given. Such offers may develop a
brand loyalty towards Raj milling Industry
 Product proliferation: introduce the products with lots of variety, this will
give the buyer more choice for e.g. Lia, Bansuri, Rhythm etc…
 Offer sample packs to all outlets so that the product gains awareness.
 Sample packs can also be given with some local magazines which are
being sold
 The sticks must be more thick and The chemicals used in incense stick
will not attach to the consumer hands
 Many competitors are providing 1Rs and 2Rs packets with 4 or 6 sticks
for a day use therefore company can grab that opportunity.
 Company should give more important on quality because some of the
incense sticks will not burn fully and in the middle itself it will off so
company has improve on quality.
 Increase the quantity of agarbatti packets of 10Rs and 12Rs.
LEARNING OUTCOME :-

 In the class just we can assume how the corporate world is but it is
completely different when I started to go to the company. In the class
just we will read, learn and same thing we will write in the exam and we
will get pass but when we go for searching job really we will feel the
heat of outside world, regarding pressure for target achievement,
competition for jobs etc.
 During my stay in the organization I was exposed to the actual working
of the organization. I learnt how the different departments of an
organization functions and coordination for overall smooth function.
 I learn how the company motivates the employee to retain and make
them work effectively with full satisfaction towards achieving their
individual goals which indirectly can achieve the organizational goals.
 The company has a lot of prospects to come up as a profit making
organization.
 Finally, excellent experience, which let me to compare theoretical
learning to my practical experience.