1.1 Industry Profile: 1.1.1 The Food Industry Includes

Kamal Fruits Processing Industry, Mysore
CHAPTER I
1.1 INDUSTRY PROFILE
The food industry is a complex, global collective of diverse businesses that supplies
most of the food consumed by the world’s population. Only subsistence farmers, those who
survive on what they grow, and hunter gatherers can be considered outside the scope of the
modern food industry.
1.1.1 The food industry includes:
 Agriculture: Raising crops, livestock, and seafood.

 Manufacturing: Agrichemicals, agricultural construction, farm machinery and supplies,
seed, etc.
 Food processing: Preparation of fresh products for market, and manufacture of prepared
food products.
 Marketing: Promotion of generic products, new products, advertising, marketing
campaigns, packaging, public relations, etc.
 Wholesale and food distribution: Logistics, transportation, warehousing.
 Regulation: Local, regional, national, and international rules and regulations for food
production and sale, including food quality, food security, food safety,
marketing/advertising, and industry lobbying activities.
It is challenging to find an inclusive way to cover all aspects of food production and sale. The
UK Food Standards Agency describes it thus:
“...the whole food industry-from farming and food production, packaging and distribution, to
retail and catering.”
Department of Management
The Indian food industry is poised for huge growth, increasing its contribution to world food
trade every year. In India, the food sector has emerged as a high-growth and high profit sector
due to its immense potential for value addition, particularly within the food processing industry.
Accounting for about 32 percent of the country’s total food market, The Government of India has
been instrumental in the growth and development of the food processing industry. The
government through the ministry of food processing industries (MoFPI) is making all efforts to
encourage investments in the business. It has approved proposals for joint ventures (JV), foreign
collaborations, industrial licenses, and 100 percent export oriented units.
1.1.2 MARKET SIZE
The Indian food and grocery market is the world’s sixth largest, with retail contributing 70
percent of the sales. The Indian food processing industry accounts for 32 percent of the country’s
total food market, one of the largest industries in India and is ranked fifth in terms of production,
consumption, export and expected growth. It contributes around 8.80 and 8.39 percent of gross
value added (GVA) in manufacturing and agriculture respectively, 13 percent of India’s exports
and six percent of total industrial investment. The Indian gourmet food market is currently
valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20
percent. India’s organic food market is expected to increase by three times by 2020.
The online food ordering business in India is in its nascent stage, but witnessing exponential
growth. With online food delivery players like FoodPanda, Zomato, Tinyowl and swiggy
building scale through partnerships, the organized food business has a huge potential and a
promising future. The online food delivery industry grew at 150 percent year-on-year with an
estimated Gross Merchandise Value (GMV) of US$ 300 million in 2016.
1.2 FOOD PROCESSING
Food processing includes the methods and techniques used to transform raw ingredients into
food for human consumption. Food processing takes clean, harvested or slaughtered and
butchered components and uses them to produce marketable food products. There are several
different ways in which food can be produced.
Fig 1.1: Food Processing
The Ministry of Food Processing, Government of India has defined the following segments
within the Food Processing industry:
• Dairy, fruits & vegetable processing
• Grain processing
• Meat & poultry processing
• Fisheries
• Consumer foods including packaged foods, beverages and packaged drinking water.
One-off production: This method is used when customers make an order for something to be
made to their own specifications, for example a wedding cake. The making of one-off products
could take days depending on how intricate the design is.
Batch production: This method is used when the size of the market for a product is not clear, and
where there is a range within a product line. A certain number of the same goods will be
produced to make up a batch or run, for example a bakery may bake a limited number of
cupcakes. This method involves estimating consumer demand.
Mass production: This method is used when there is a mass market for a large number of
identical products, for example chocolate bars, ready meals and canned food. The product passes
from one stage of production to another along a production line.
Just-in-time: This method of production is mainly used in restaurants. All components of the
product are available in house and the customer chooses what they want in the product. It is then
prepared in a kitchen, or in front of the buyer.
1.2.1 SEGMENTATION OF FOOD PROCESSING INDUSTRY
The ministry of food processing, government of India indicates the following segments within
the food processing industry.
I. Based on the level of processing:

 Primary processing of food: sorting, grading and packaging of fruits and vegetables,
milk, rice, spices, etc.
 Secondary processing of food: Re-shaping of food for ease of consumption. It includes
flour, oil cakes, tea leaf and beverages powder etc.
 Tertiary processing of food (or) value added food segment: processed fruits and
vegetables, juices, jam and jelly etc.
II. On the basis of the raw material used:
 Dairy, fruits and vegetable processing.

 Grains and cereals
 Fisheries
 Meat and Poultry processing.
 Consumer foods including package food, beverages and packaged drinking water.
1.2.2 SEGMENT WISE ANALYSIS
DAIRY SECTOR
India stands first in the world in terms of milk production .The output is expected to be about
108 million tonnes (estimate for 2007), growing at a compounded annual growth rate of 4 per
cent. Consumption of milk has registered a growth of nearly 8.4 per cent (in urban areas) and is
currently valued at US$ 16 billion.
GRAIN PROCESSING
India produced nearly 209.32 million tonnes of grains in 2005- 06. India’s production covers all
major grains – rice, wheat, maize, barley and millets like jowar, bajra and ragi. It ranks third in
the production of grains in the world. With a share of 40 per cent, grain processing is the biggest
component of food sector. Primary processing constitutes 96 per cent with the remaining
accounted for by the secondary and tertiary sectors.
FRUITS AND VEGETABLES
India produces the widest range of fruits and vegetables in the world. It is the second largest
vegetable and third largest fruit producer accounting for 8.4 per cent of the world’s food and
vegetable production.
MEAT AND POULTRY PROCESSING
India has the largest number of livestock population in the world accounting for 50 per cent of
buffaloes and 16 per cent of the goat population. Meat production grew at a CAGR of 34 per
cent during the period 1999-2004 and stood at US$ 12.44 million in 2005-06. Meat exports stood
at US$ 0.104 million in 2005-06.
FISHERIES
India is the third largest fish producer in the world and second in in-land fish production. The
Fisheries sector in India has been classified into marine, inland and aquaculture. The fisheries
sector contributes 1.1 per cent to the country’s GDP. This segment also provides employment to
11 million people engaged fully, partially or in subsidiary activities pertaining to the sector.
BEVERAGES
The beverages market primarily consists of non-alcoholic beverages which can be broadly
classified into carbonated drinks, non-carbonated drinks and hot beverages. This segment is
estimated at US$ 155 million out of which fruit juices and fruit-based drinks account for US$ 60
million. The market size of organised carbonated drinks is estimated at US$ 119 million. In the
past decade the carbonated drinks market registered a healthy growth rate of 20 per cent, driven
by the positive changes in India’s consumer profile.
1.3NATURE OF INDUSTRY
India is the world’s largest producer of food next to China, and has the potential of being the
biggest with the food and agricultural sector. The food processing industry is one of the largest
industries in India-it is ranked fifth in terms of production, consumption, export and expected
growth. Though the industry is large in size, it is still at nascent stage in terms of development of
the country’s total agriculture and food produced, only 2% is processed.
With a huge agriculture sector, abundant livestock, and cost competitiveness, India is fast
emerging as a sourcing hub for processed food. The Indian food processing industry accounts for
32% of the country’s total food market.
Food processing is a large sector that covers activities such as agriculture, horticulture,
plantation, animal husbandry, and fisheries.
1.4 GROWTH POTENTIAL
India’s food processing sector continues to grow in response to changing demographics,

evolving preferences for branded and convenient items, retail and food service sector
modernization, and government efforts to develop food manufacturing.
A continuously growing food processing sector of India may be a key to make in India program
in coming years. According to an ‘Assocham Grand Thorton Study’, the Indian food processing
sector has the potential to attract 33 billion USD in investment and generate employment for 9
million person by 2024.
India’s food processing sector continues to grow in response to changing demographics,

evolving preferences for branded and convenient items, retail and food service sector
modernization, and government efforts to develop food manufacturing.
Increasing health consciousness is influencing the development and sales growth of packaged
foods. Imports of non-standardized processed food and ingredients remain a challenge, though
regulatory reforms are supporting progress. Increasing urbanization, lifestyle changes, greater
affluence, and increased rates of women working outside of the home are driving demand for
processed food.
1.5 COMPETITOR ANALYSIS
The competitor analysis helps firms in the food industry by effectively monitored competitors
pricing strategies and proactively took informed business decisions. Compare the performance of
the competitors and identified opportunities and identified opportunities to differentiate the
products and services.
1.5.1 WHY TO CONDUCT COMPETITOR ANALYSIS
Consider the four P’s of marketing: product, price, place, and promotion. If we are able to
measure those last three – price, place, and promotion it will be far easier it imitate your
competitor’s successes and learn from their mistakes. Monitoring competitor’s pricing strategies,
shelf placements, and in-store advertisements will empower company to be proactive rather than
reactive by augmenting its retail strategy at the first sign of a competitive threat.
1.5.2 HOW TO CREATE A COMPETITIVE ANALYSIS
The specific components of a competitor analysis will vary from company to company based on
each business’s unique requirements. Nevertheless, there are a certain element that remain
constant as part of any competitive analysis research.
These include:
 Competitor name
 Competitor product line
 Competitor price
 A description of the competitor’s visual merchandising (shelf location, marketing
materials, etc)
 Competitor packaging (material, color, style, etc)
 Competitor product description (fresh or pre-packaged)
1.6 GOVERNMENT INITIATIVE
Some of the major initiatives taken by the government of India to improve the food processing
sector in India are as follows:
 The Government of India aims to boost growth in the food processing sector by
leveraging reforms such as 100 percent Foreign Direct Investment (FDI) in marketing of
food products and various incentives at central and state government level along with a
strong focus on supply chain infrastructure.
 In Union Budget 2017-18, the government of India has set up a dairy processing infra
fund worth Rs 8,000 crore(US$ 1.2 billion).
 The Government of India has relaxed foreign direct investment (FDI) norms for the
sector, allowing up to 100 percent FDI food product e-commerce through automatic
route.
 The Food Safety and Standards Authority of India (FSSAI) plans to invest around Rs 482
crore (US$ 72.3 million) to strengthen the food testing infrastructure in India, by
upgrading 59 existing food testing laboratories and setting up 62 new mobile testing labs
across the country.
 The Indian Council for Fertilizer and Nutrient Research (ICFNR) will adopt international
best practices for research in fertiliser sector, which will enable farmers to get good
quality fertilisers at affordable rates and thereby achieve food security for the common
man.
 The Ministry of Food Processing Industries announced a scheme for Human Resource
Development (HRD) in the food processing sector. The HRD scheme is being
implemented through State Governments under the National Mission on Food
Processing. The scheme has the following four components:
i. Creation of infrastructure facilities for degree/diploma courses in food

processing sector.
ii. Entrepreneurship Development Programme (EDP).
iii. Food Processing Training Centres (FPTC).
iv. Training at recognised institutions at State/National level.
 100% deduction of profit for first five years and 25% of profit in the next five years to
new agro processing industries set up to package and process fruits and vegetables.
 Excise duty on dairy machinery-waived off.
 Excise duty on meat, poultry and fish products reduced from 16% to 18%.
 100% FDI in the industry (except for items reserved for small scale and alcoholic
beverages) through automatic route
 Full repatriation of profit and capital-allowed.
 Full exemption on duty-allowed for all imports by exports oriented units.
1.6.1 ROAD AHEAD
Going forward, the adoption of food safety and quality assurance mechanisms such as Total
Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical
Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices
(GHP) by the food processing industry offers several benefits. It would enable adherence to
stringent quality and hygiene norms and thereby protect consumer health, prepare the industry to
face global competition, enhance product acceptance by overseas buyers and keep the industry
technologically abreast of international best practices.
1.7 INDUSTRY SCENARIO
Food processing has an important role to play in linking Indian farmers to consumers in the
domestic and international markets. The ministry of food processing industry is making all
efforts to encourage investments across the value chain. The industry engaged approximately
1.85 mn people in around 39,748 registered units with fixed capital of $32.75 bn and aggregate
output of around $158.69 bn. Major industries constituting the food processing industry are
grains, sugar, edible oils, beverages and dairy products.
1.7.1 CRITICAL SUCCESS FACTORS FOR MANUFACTURERS

IN THIS SECTOR
The Indian food processing industry’s growth potential cannot be disputed; however, it requires
certain competencies and success factors to fructify this potential. These include addressing the
current gaps in the value chain as well as leveraging on the various advantages the country
provides. Investors in the sector need to be aware of these factors and build the required
capabilities in their business to ensure success. Some of the key success factors are discussed
below.
a) INTEGRATED SUPPLY CHAIN AND SCALE OF OPERATIONS
While India ranks second in production of fruits & vegetables, nearly 20 to 25 per cent of this
production is lost in spoilage in various stages of harvesting. The key issues are poor quality of
seeds, planting material and lack of technology in improving yield. Ensuring good quality
produce entails investments in technology and ability to sustain a long gestation period for the
harvest. Good quality production also results in better quality of processed fruits. Hence there is
a need to establish backward linkages with the farmers with the help of arrangements such as
contract farming to improve the quality of the produce. Scale is a key factor in the processing
industry. Nearly 90 per cent of the food processing units are small in scale and hence are unable
to exploit the advantages of economies of scale. This is also true with land holdings. The country
has only 3600 slaughterhouses, 9 modern abattoirs and 171 meat processing units, and a limited
number of pork-processing units. This is one of the reasons penetration of processed meat is
extremely poor at 1 per cent in India. These figures indicate both the need for scale, and the
potential for growth offered by the sector.
b) PROCESSING TECHNOLOGY
Most of the processing in India is currently manual. There is limited use of technology like pre-
cooling facilities for vegetables, controlled atmospheric storage and irradiation facilities. This
technology is important for extended storage of fruits and vegetables in making them conducive
for further processing. In the case of meat processing, despite the presence of over 3600 licensed
slaughter-houses in India, the level of technology used in most of them is limited, resulting in
low exploitation of animal population. Bringing in modern technology is an area that existing as
well as new investors in the sector can focus on, this will make a clear difference in both process
efficiencies as well as quality of the end product.
c) INCREASING PENETRATION IN DOMESTIC MARKET
Most of the processing units are export oriented and hence their penetration levels in the
domestic market are low. For example,
• Penetration of processed fruits and vegetables overall is at 10 per cent
• The relative share of branded milk products especially ghee is still low at 2 per cent
• Penetration of culinary products is still 13.3 per cent and is largely tilted towards metros
• Consumption of packaged biscuits for Indian consumers is still low at 0.48 per cent while that
for Americans is 4 percent.
However, there is increasing acceptance of these products amongst the urban population. India
has a large untapped customer base and even a small footprint in the domestic market would
enable the player to gain significant volumes.
d) COMPETITIVE PRICING
Consumers of processed foods are extremely price sensitive even a small change in pricing can
have significant impact on consumption. For instance, the launch of PET bottles, new price
points and package sizes in non-carbonated drinks (such as Coca Cola) has increased in-home
consumption from 30 per cent in 2002 to 80 per cent in 2003. Competitive pricing also enables
penetration in the rural markets.
e) BRAND COMPETITIVENESS
Share of branded products in purchases of Indian consumers has increased by 25 per cent to 35
percent. This is especially true for urban consumers. Branded products like Basmati rice and
KFC’s chicken have been very successful implying that there is a good demand for hygienic
branded products at reasonable prices.
f) PRODUCT INNOVATION
Certain processed food categories such as snack foods are impulse purchase products where
consumers look for novelty and new flavors and hence these categories lack brand loyalties.
Visibility through attractive packaging boosts consumption. Increasing time constraints amongst
the working middle class has boosted consumption of products like instant soups, noodles and
ready-to-make products. Innovation in packaging and product usage is an important success
factor for processed foods.
1.8 COMPANY PROFILE
1.8.1 OBJECTIVES
The main objectives of food processing are:-
 Removal of unwanted matter from the food.

 Making food safe for consumption.
 Enhance flavour, colour and taste.
 Improve texture and consistency.
 Extending shelf life.
 Enhance the quality.
 Ease of storage, transportation and distribution systems.
1.8.2 VISION
“To be a leader and innovator in the development of food manufacturing sector and to be most
profitable in business.”
1.8.3 MISSION
 To increase their sales.

 Creation of high quality food processing infrastructure.
 To reduce wastage.
1.8.4 BACKGROUND AND INCEPTION OF THE COMPANY
Kamal fruit processing industry was started in the year 1990. The founder of the company is Mr.
Kalegowda. Initially the company used to manufacture pickles, now it is manufacturing tomato
sauce, chili sauce, soya sauce, noodles and tutti-fruity. The raw material required to manufacture
the products are directly purchased from farmers. There are 60 employees in the company. The
products that are manufactured are directly sold to the wholesalers and distributors. The
company is tied up with many firms which will help them to maintain their production cycle.
They will produce various kinds of sauce products according to the demand raised by the firms.
The company also manufactures the sauce for other companies that is with the brand name of the
company from whom they receive the orders. These kind of orders are occasional and the
product will be manufactured according to the specification given by the respective companies.
Hence they also produce customized product according to the needs of the orders given by the
bulk receivers.
Various examples of sauce prepared with the brand name of the order giving companies are as
below:
 Surya sauce
 Chong sauce
 Sun No.1 dark sauce
 Pushkar sauce
SOME OF THE COMPANIES FROM WHOM THEY TAKE ORDERS:-
 Shree Sapthagiri Enterprises, Bangalore.

 Shivashakthi Traders, Hassan.
 Ratan Trading, Madhurai.
 Sun Enterprises.
1.8.5 NATURE OF BUSINESS CARRIED
The company profile is to manufacture sauce by taking the raw materials from the farmers. As it
involves processing the raw materials to deliver the final processed product for consumer use,
the industry comes under Food Processing Industry. The company is bind to follow the standards
set for Food Processing Industry in terms of quality of the food processed. And in addition it
involves planning the management strategies to maintain between the production according to
the demand and also in expanding the business by adequate maintenance of quality, distribution
cycle and also to draw the attention of more consumers.
1.8.6 QUALITY POLICY
Food Safety and Standards Authority of India is an autonomous body established under the
ministry of health and family welfare, Government of India. The FSSAI has been established
under the food safety and standards act, 2006 which is a consolidating statute related to food
safety and regulation in India. FSSAI is responsible for protecting and promoting public health
through the regulation and supervision of food safety.
The company need to submit report for FSSAI for every 6 months.
License Number :- 11217323000206
1.8.7 AWARD
GEM of India national award in the year 2008. This award is given for the undying dedication
and perseverance of leaders who have used vision creativity, business acumen and technology to
help establish India as a front runner in the competitive global environment.
1.9 PRODUCT PROFILE
The Kamal fruits processing have 4 range of product with different flavours they are as follows:
 Sauces: Tomato, Soya bean, Chilli.

 Noodles.
 Tutti Frutti.
 Vinegar.
Fig 1.2: Products
1.9.1 TOMATO SAUCE
Tomato in India occupies second position amongst the vegetable crops in terms of production.
Another encouraging trend has been that India's production level of processed tomato has risen
by 50 percent. The main objective of processing is to supply wholesome, safe, nutritious and
acceptable food to consumers throughout the year. Tomatoes and tomato-based foods are
considered healthy for the reason that they are low in calories, but possess a remarkable
combination of antioxidant micronutrients. A number of tomato products e.g. ketchup, juice,
puree, paste, sauce, pickles are available in the market. Tomato sauce tastes sweet and sour. Both
sauce and ketchup are consumed with food and snacks.
Fig 1.3: Tomato sauce
INGREDIENTS USED FOR PREPARING TOMATO SAUCE
 Tomato pulp
 Gum Powder
 Sugar
 Salt
 Stabilizer (E415)
 Acidifying (INS-260)
1.9.2 SOYA SAUCE
Soy sauce is a salty liquid condiment traditionally produced by fermenting soybeans and wheat.
It is thought to have originated from a Chinese product called “chiang” over 3,000 years ago.
Similar products were developed in Japan, Korea, Indonesia and across Southeast Asia. It first
came to Europe in the 1600s through Dutch and Japanese trading. The word “soy” comes from
the Japanese word for soy sauce, “shoyu.” In fact, the soybean itself was named from soy sauce.
Fig 1.4: Soya Sauce
INGREDIENTS USED TO PREPARE SOYA SAUCE
 Soya Beans
 Sugar
 Acidic
 Gum Powder
 Water
 Salt
1.9.3 CHILI SAUCE
Fig 1.5: Chili sauce
Hot sauce, also known as chili sauce or pepper sauce, is any seasoning, or salsa made from chili
peppers and other ingredients. Many commercial varieties of mass-produced chili sauce exist.
Some commercially produced chili sauces are canned, with red tomato that is processed into a
pulp used as the primary ingredient.
INGREDIENTS USED TO PREPARE CHILI SAUCE
 Green Chilies.
 Salt.
 Acidifying ( INS-260).
 Stabilizer.
1.9.4 NOODLES
Noodles area a type of food made from unleavened dough which is rolled flat and cut, or

extruded, into long strips or strings. Noodles can be refrigerated for short-term storage or dried
and stored for future use.
Noodles are usually cooked in boiling water, sometimes with cooking oil or salt added. They are
also often pan-fried or deep-fried.
Fig 1.6: Noodles
INGREDIENTS USED TO PREPARE NOODLES
 Salt
 Wheat Flour
 Oil
 Water
1.10 AREA OF OPERATION
They have limited area of operation that is only with limited cities which are regional they are
concentrating towards South India. Places include Mysore, Kerala, Madikeri, Tamilnadu, Goa
etc.
1.11 FUTURE GROWTH AND PROSPECTUS
They can expand their industry by producing more variety of sauce products and also by
expanding their area of operation by including more and more cities and also they can approach
more distributors so that they can see a significant increase in their sales. As far now they have
planned to produce ‘Micro Beverages’: Any liquid that can quench the thirst are called beverage.
Water is a beverage item. Tea, coffee, milk, juice and any kind of drinks item are listed in
beverage items. Actually, beverage means any kind of liquid item. The growth in food
processing industry will bring overall development in the economy as it establishes a vital
synergy between the two main pillars of economy, agriculture and industry. With India is making
a shift in its policy to ‘make in India’ numerous gates of growth and development opens up for
the food processing industry.
CHAPTER II
2.1 SWOT ANALYSIS
Fig 1.7: SWOT analysis
SWOT analysis is a study undertaken by an organization to identify its internal strengths and
weaknesses, as well as its external opportunities and threats. It is intended to specify the
objectives of the business venture or project and identify the internal and external factors that are
favorable and unfavorable to achieving those objectives. Strengths and weakness are frequently
internally related, while opportunities and threats commonly focus on the external environment.
The name is an acronym for the four parameters the technique examines:
 Strengths: Describe what an organization excels at and what separates it from the

competition a strong brand, loyal customer base, a strong balance sheet, unique
technology, and so on. For example, a hedge fund may have developed a proprietary
trading strategy that returns market-beating results. It must then decide how to use those
results to attract new investors.
 Weaknesses: Stop an organization from performing at its optimum level. They are areas
where the business needs to improve to remain competitive: a weak brand, higher-than-
average turnover, high levels of debt, an inadequate supply chain, or lack of capital.
 Opportunities: Refer to favorable external factors that could give an organization a
competitive advantage. For example, if a country cuts tariffs, a car manufacturer
can export its cars into a new market, increasing sales and market share.
 Threats: Refer to factors that have the potential to harm an organization. For example, a
drought is a threat to a wheat-producing company, as it may destroy or reduce the crop
yield. Other common threats include things like rising costs for materials, increasing
competition, tight labor supply and so on.
2.1.1 ORGANIZATION’S SWOT:
Fig 1.8: Organizations SWOT
STRENGTH:
 The quality of the product is high.
 The cost of the product is cheaper when compared to other brands.
 This industry does not create any kind of pollution.
 The majority of employees are experienced.
 The industry is using STP process.
WEAKNESS:
 When compared to other brand it lacks in advertisement.

 Low market share.
 Some processes are carried out manually.
 Weak brand name.
OPPORTUNITIES:
 Area of supply for now is concentrated to southern states, whereas it can be extended to
other states as well.
 Sachets of sauce can be prepared.
 They can prepare more varieties, such as garlic sauce.
 Online marketing.
 The manufactured products can be sold to retailers.
THREATS:
 The potential for the large financial resources competitors who can invest more in
promotion and advertising.
 Increasing health consciousness among people may reduce the sales in upcoming days.
 High number of sauce producing companies making the industry competitive.
 Increasing popularity for organic product.
 Due to manual intervention in some processes involved, increase in labour demand may
post threat.
2.1.2 ADVANTAGES OF SWOT ANALYSIS
SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it
involves a great subjective element. It is best when used as a guide, and not as a prescription.
Successful businesses build on their strengths, correct their weakness and protect against internal
weaknesses and external threats. They also keep a watch on their overall business environment
and recognize and exploit new opportunities faster than its competitors.
SWOT Analysis helps in strategic planning in following manner-
a. It is a source of information for strategic planning.

b. Builds organization’s strengths.
c. Reverse its weaknesses.
d. Maximize its response to opportunities.
e. Overcome organization’s threats.
f. It helps in identifying core competencies of the firm.
g. It helps in setting of objectives for strategic planning.
h. It helps in knowing past, present and future so that by using past and current data, future
plans can be chalked out.
SWOT Analysis provide information that helps in synchronizing the firm’s resources and
capabilities with the competitive environment in which the firm operates.
2.2 TOWS MATRIX
The TOWS Matrix helps businesses to identify their strategic options. An organization gets the
opportunity to make the most of its strengths and get around its internal weaknesses and learn to
deal with them properly. Externally, an organization learns to carefully look for market
opportunities and recognize possibilities. And they learn how to control and overcome potential
threats.
The TOWS Matrix can also help with brainstorming and developing great ideas to generate
effective marketing strategies and tactics. Furthermore, the model goes beyond merely finding
out the strengths and weaknesses within an organization and what opportunities and threats there
are in its environment. It forces organizations to really think about how they can improve
themselves, how they can guard against threats and become more aware of their expertise and
potential shortcomings.
It starts by analyzing external opportunities and threats. Up next are the internal strengths and
weaknesses, which will subsequently be linked to the external analysis. And this is where it goes
a step beyond the traditional SWOT analysis: strategic tactics emerge by opposing S-O
(Strengths-Opportunities), W-O (Weaknesses-Opportunities), S-T (Strengths-Threats) and W-T
(Weaknesses-Threats).
A next step in the analysis helps when thinking about the option they want to pursue. Here the
external opportunities and threats are compared to the internal strengths and weaknesses to help
identify strategic options:
A. Internal Strengths and External Opportunities (S-O) – how can they use the strengths to
benefit from existing external opportunities?
B. Internal Strengths and External Threats (S-T) – how can they benefit from their strengths
to avoid or lessen (potential) external threats?
C. Internal Weaknesses and External Opportunities (W-O) – how can they use opportunities
to overcome the organization’s internal weaknesses?
D. Internal Weaknesses and External Threats (W-T) – how can they minimize weaknesses
and thus avoid potential threats?
2.2.1 ORGANIZATION’S TOWS
Fig 1.9: Organization’s TOWS
Strength and Opportunity strategy: (Maxi-Maxi)
 Automation of certain activities has brought consistency of quality.

 Strong and reliable distribution network in certain areas have fetched good customers.
 Can expand new product categories.
 The company with its dedicated customer relationship management department has able
to achieve a high level of customer satisfaction.
 Loyal customers will favor the company rather than other brands.
Strength and Threat strategy: (Maxi-Mini)
 Concentrating on local market is fetching the customer satisfaction whereas the interest
towards global marketing is less.
 Providing quality products and hence cannot be compromised with price of product,
while competitors are offering significant discount.
 Local customers will stay with the company despite competitors and price.
Weakness and Opportunity strategy: (Mini-Maxi)
 Organization product category is limited, and hence if product category is expyanded it

act’s as an opportunity.
 Overall global marketing strategy is not present and hence much importance can be given
for it.
 Online marketing strategy is absent and hence can be introduced into online platform.
 Small sachets are not being manufactured, and hence this can be used as opportunity to
increase sales.
Weakness and Threat strategy: (Mini-Mini)
 Changing consumer buying behavior from online channel could be a threat to the existing
physical infrastructure driven supply chain model.
 Shortage of skilled workforce in global marketing.
 Vast range of products offered by the competitive companies.
 Quality and pricing must be done according to successfully compete with other
competitors.
THE ADVANTAGES OF TOWS ANALYSIS INCLUDE:
 It’s not just merely brainstorming some strategic ideas. It’s about actually linking
internal factors to external factors to generate the best strategies for the organization.
 It can help you identify strategic options you may not have previously considered.
CHAPTER III
3.1 MC KINSEY’S 7S FRAME WORK
The model is based on the theory that, for an organization to perform well, these seven elements
need to be aligned and mutually reinforcing, so the model can be used to help identify what need
to be realigned to improve performance, or to maintain alignment and performance during other
types of change. The Mc Kinsey 7s frame work is a management model developed by well
known business consultants Robert H. Waterman Jr. and tom peter who also developed the
MBWA, “Management by walking Around “ motif and authored in the 1980s.
This was the strategic vision for group, to include business, business units, and team. The 7s are
structure, strategy, system, skills, style, staff, and shared values.
The model is most often used as an organizational analysis tool to assess and monitor change in
the internal situation of an organization.
Where the type of change restructuring new processes, organization merger, new system, change
of leadership, and so on –the model are used to understand how the organization elements are
interrelated and so ensure that the wider impact of change made in one area is taken into
consideration.
LET’S LOOK AT EACH OF ELEMENTS SPECIFICALLY:
 Strategy: The plan devised to maintain and build competitive advantage over the
competition.
 Structure: The way the organization is structured and who report to whom.
 Shared value: When the model was first developed, these are the core values of the
company that staff members engage in to corporate culture and the general work ethic.
 Style: The style of leadership adopted.
 Staff: The employee and their general capabilities.
 Skills: The actual skills and competencies of the employees working for the company.
HARD SOFT
ELEMENTS ELEMENTS
Strategy Shared value
Structure Skill
System Style
Staff
HARD ELEMENTS
The three “hard” elements are strategy, structure, (such as organization charts and reporting
lines), and systems (such as formal process and IT systems.) these are relatively easy to identify,
and management can influence them directly.
SOFT ELEMENTS
Soft elements can be difficult to describe, and are less tangible and more advanced by culture,
this soft skills elements are important as the hard elements if the organization are going to be
successful.
3.1.7 STRUCTURE
Company structure determines how the business will operate and perform, organization structure
can allow for the association of responsibilities of the company.
CEO
HR Finance Accounts Production Purchase Marketing Store

Manager Manager Manager Manager Manager Manager Manager
DEPARTMENTAL STUDIES:
DEPARTMENTATION
Departmentation is the foundation of organization structure. Departmentation means division of
work into smaller units and their re-grouping into bigger units (departments) on the basis of
similarity of features. Each department is headed by a person known as departmental manager.
Division of work into department leads to specialization as people of one department perform
activities related to that department only. Departmentation provides scope for organization’s
growth (along the same product lines) and expansion (addition of new product lines).
The various departments that exist in the organization,
1. HR department
2. Accounting department
3. Production department
4. Purchase department
5. Store department
6. Sales department
7. Finance department
8. Marketing department
HR DEPARTMENT
A human resource manager occupies a very important position in an organization. The duty of
the human resource manager is to recruit and develop personnel required by the organization.
They are involved in manpower planning, training, maintenance, compensation. The other
responsibilities of the human resource department are formulation and development of personnel
policies, employees training and development, promotion, etc., maintaining personnel records of
each employee in the organization, establishment of goof relation with employees, effective
communication of the personnel policies and programmers of the management to employees,
welfare activities and responsible for solving the problem of employees.
Functions:
 Recruitment & Selection:

The advertisements for recruitment of employee are made though leading news paper,
apart from this as a statutory obligation.
 Training & development:

Training & development skill to newly employed. Training is necessary for production &
electrical department on the job training is arranged at the plant.
 Remuneration:
Remuneration refers to the reward for the labour & service. Basically remuneration is
fixed on the basis of hours worded. Each shift is of 8 hours and 2 shifts a day.
 Fringe benefits:
 Canteen facility
 Housing facility
HR POLICES:
i. Work health and safety policy.
ii. Harassment and Discrimination policy.
iii. Leave policy.
iv. Menstrual policy.
ACCOUNTING DEPARTMENT:
Account department is responsible for keeping the details of day book, ledger. Moreover, they
should record and maintain all the details of the sales tax calculation and related documents and
produce them on demand.
Needs for accounts system:

 To ascertain the profit of the business.
 To ascertain the financial position of the business.
 To providing control over assets & properties of the company.
 To providing information to tax authorities like sales tax, income tax, control excise etc,.
 To provide information to government central, state & various local bodies
PRODUCTION DEPARTMENT
Production is the functional area responsible for turning inputs into finished outputs through a
series of production process. They are responsible for the production of goods services in the
organization. They looks after the purchasing function and manages the production design and
process. They are responsible for plant layout, inventory management, production control and
quality control.
SAUCE PRODUCTION PROCESS

Tomatoes – Chilli
Wholesome red
tamatoes
Soaking &
wasking
Coring & crushing
Pulping
Tamato pulp (Spices sugar , Onion,

gaslic, vineger, thickner)
Cooking & concerntration Finisher
Addition of preservatives (Bottles)
Filling
(Low
pastrurization)
Cleaning Bottles
Labelling
packing
Marketing
MACHINE USED IN PRODUCTION PROCESS

PULPER MACHINE
Fruit pulping machine is constituted by fed hopper, band screen, separation axis, gearing,
machine frames, protective cover and other components. After fruit sorting, cleaning and peeling
process, the raw material is fed into the fruit pulping machine. Under the action of high-speed
separation axis, the kernel and trace amount of peel will be separated from fruit flesh and
discharged through the outlet. And the fruit pulps get into the screw pump and transmitted to the
next procedures.
Fig 2.0: Pulper Machine
BOILER
Boiler is used to create steam by applying heat. The fruit is boiled here with the help of water.
Fig 2.1: Boiler
KETTLE MACHINE
Kettle machine is a type of pot, specialized for boiling water. Kettles can be heated either by
placing on a stove, or by their own internal electric heating element in the appliance.
Fig 2.2: Kettle Machine
PURCHASE DEPARTMENT
Purchase department also called procurement department, supports operation by serving as the
primary buyer of goods and services. Procuring raw materials and other resources. One role of
the purchasing department is to procure all necessary materials needed for production or daily
operation of the company.
PURCHASING CAPITAL ASSETS

Capital assets are significant pieces of property such as homes, investment properties,
stocks, bonds and even collectables or art. For business a capital assets is a tangible asset with a
useful life longer than a year that is not intended for sale in the regular course of the business’s
operations.
 Life duration of the assets.

 Cost of the assets.
 Capital etc.,
REGULAR PURCHASE
A regular purchase order is a method for placing orders for a one-time purchase and
payment for line item goods that have a specific quantity and unit price.
Duties and responsibilities of the purchase department are:
 Prepare purchase budget.

 Receive purchase requisition, and ascertain the material requirements.
 Ascertain the sources of supply.
 Issue purchase order to the supplier selected.
 Follow-up the purchase order to avoid any delay in delivery.
 Receive goods received note and the inspection report.
 Verify the invoice with regard to quality, price and other relevant particulars and pass it
for payments.
SALES DEPARTMENT
A sales department is the direct link between a company’s product or service and its customers.
Sales manager is in-charge of the sales department. The sales department takes care of all the
sales. The assistant sales manager has to supervise the sales.
DISTRIBUTION CHANNEL
Distribution channels are the paths that products and services take on their way from the
manufacturer to the end customer.
There are two types of distribution channel:
a) Direct distribution channel

b) Indirect distribution channel
The company is following indirect channel of distribution where companies work with one or
more distribution partners or intermediaries to bring products and service to customers.
There are numerous types of intermediaries like value-added retailers (VARs), consultants,
wholesalers, distributors, retailers. But the company has chosen wholesales to reach their product
to the end customers.
Distribution Wholesaler Customer
Roles and responsibilities of sales department:
 Product, pricing and distribution

 Continues innovation
 Customer sales and service
 Promotions and Marketing
 Product diversification
Functions:
 Getting orders from parties.
 Arranging for delivery to parties.
 Maintaining records of sale.
 Sending reports to managing director.
STORE DEPARTMENT
Store department holds the entire inventory required in the organization. All the
materials asking are subjected to record at stores & held in the stores until they are issued to the
required department.
The Raw materials which are stored are:
Empty Bottles, Tomato’s, Chili’s, oil, Sugar, Spices, Onion, Gum powder, Acidic, Stabilizer
(E415) and the finished foods such as Tomato sauce, Chili sauce, Soya sauce, Noodles etc.,
Fig 2.3: Raw materials
Head store keeper
Computer operation
Clerks
Store boys
MARKETING DEPARTMENT
The work force department in this department is responsible in identifying customer needs and
creating tourism products to satisfy them. The marketing manager mainly involved in the
following activities
 Market research
 Understanding market segments
 Product decisions
 Promotion decisions
 Price decision
 Product diversification
FINANCE DEPARTMENT
Finance department is responsible for financial matters in the organization. They prepares
financial plan. They assess the financial needs of the organization and source of the finance.
They should be expert in the field of financial management.
The financial department of kamal fruits processing industry knows different tools used in the
financial management ratio analysis, fund flow analysis, cash flow analysis, budgeting etc. All
these are necessary to prepare a sound financial policy for the organization. They take the
responsibility of financial planning, raising necessary fund, controlling the use of funds,
investment decision, management of incomes, management of cash, deciding upon borrowing
policy and tax administration.
 About financial statement

 Profit and appropriation
 Total liabilities
 Total assets
 Net cash flow from operating activities
 Liquid ratio
 Profitability ratio
 Income and expenditure
 Growth in income and expenditure

 Growth in assets and liabilities
 Forex transaction
Managing Director
Finance manager
Department manager
Accounts officer
Accouters Cashier
The company has taken loan from Karnataka State Financial Corporation (KSFC) for monetary
help. KSFC gives financial assistance to set up tiny, small, medium and large scale industrial
units in the Karnataka state. KSFC is one of the fast track term lending financial institutions in
the country.
3.1.1 STRATEGY:
Strategy is the sum of the action a company intends to take to achieve long term goals, it allows a
business to reach their established goals. It is an expression of how an organization needs to
evolve over time to meet its objectives along with a detailed assessment of what needs to be
done, by using advanced technology.
IMPORTANCE OF STRATEGY:
i) A well defined business strategy will offer guide on how business is performing internally.
ii) A strategy can identify trends and opportunities in the future and develop tactics so that
business can modify and develop to suit these future changes.
iii) A business strategy creates a vision and direction for the whole organization.
THREE TYPES OF MARKETING STRATEGIES:
1) COST LEADERSHIP STRATEGIES: A strategy where the firm prices its products at

the lowest possible cost, in order to penetrate and/or sustain its position of leadership is
Cost Leadership Strategy. The appeal of the product is for cost-conscious people. In other
words, the price-sensitive class of customers is the target segment of the firm and all the
business activities are planned accordingly, right from procurement of raw materials to
distribution and marketing. It is one of the types of Business strategies used by top firms
such as Walmart and Amazon, who sell products on the promise of low costs.
2) DIFFERENTIATION STRATEGIES: When the product is differentiated with its
unique feature or unique selling point (USP) in order to compete and win effectively, that
is known as the differentiation strategy. Differentiate your product or service, whatever it
may cost and offer to customers on a higher price (usually niche market). It is a Type of
Business Strategy used by Apple, a company that promises differentiated products to its
customers.
3) FOCUS STRATEGIES: As the name suggests, this strategy is applied only for a
selected audience of the small market with specialized needs. The target market has
unique needs and it is to cater these needs that firms focus on. It is up to the firm to
charge the premium or keep it below average for these products. Usually, the firm to
implement this strategy would choose the target market with low or no competitors and
with the aim to achieve competitive advantage. It is one of the strongest Types of
Business strategies because it has a definite demand in the market. This strategy should
target market segments that are less vulnerable to substitutes or where a competition is
weakest to earn the above-average return on investment.
Focus Type of Business Strategies is divided into two parts viz Focused Cost Strategy
and Focused Differentiation strategy. In cost focused, the prices are tailored for the
particular need to cater specific group of people. This doesn’t mean the prices are lower,
on the contrary, the prices may be higher.
Fig 2.4: Business Strategy
Strategy used by Kamal food processing industry is Low cost strategy.
Kamal food processing industry has been applying this low cost strategy since 10 years to take
the competitive advantage with the motive to increase their sales turnover. Low cost strategy is a
type of pricing strategy in which the firm offers the products at low price. This strategy helps to
stimulate the demand and gain higher market share.
Cost leadership strives towards cutting costs to a minimum possible levels in order to provide
customers with lower prices and thus boost their savings. Cost strategy prerequisites normally
relate to high technical capabilities and access to capital for the company to invest in technology
and assure economies of scale.The firm can gain cost advantages by increasing their efficiency,
taking advantage of economies of scale, or by getting the raw material at low cost.
Building a strategy on minimizing costs requires a company to achieve:
 High productivity
 High capacity utilization
 Use of bargaining power to negotiate the lowest prices for production inputs
 Lean production methods
 Effective production process
 Effective distribution channels
Environmental Concerns:
Running an environmentally friendly business helps one to reduce impact on the environment
and preserves natural resources. For example, you can:
 use products that reduce reliance on natural resources (e.g. rainwater tanks, solar hot
water systems)
 use products that are made from recycled material (e.g. office supplies made from
recycled plastic, furniture made from recycled rubber)
Making your business environmentally friendly not only benefits the environment but can also
save money. Avoiding, reducing, reusing and recycling can lower your costs. And also good
practice can attract new customers. Promoting environmentally friendly methods can set your
business apart from your competitors and attract new customers who want to buy products and
services from an environmentally friendly business. Focusing more on your environmental
impacts can also help to attract and retain staff. Reducing the environmental impact of business
will improve the sustainability of business. If a business is less dependent on natural resources
than their competitors and have ways to deal with rising costs due to climate change, one’s
business will have a greater chance of long-term success.
Kamal food processing industry shows its environmental concern by opting for Zero waste
management strategy through SEWAGE TREATMENT PLANT (STP) process.
Zero waste management is a visionary management system. It has been presented as an

alternative solution for waste problems in recent decade and it has been an aspirational goal for
tackling waste problems. At the most basic level, zero waste management is about reducing,
recycling and reusing the resources instead of sending them to landfills and incinerators –
eventually eliminating waste completely. It refers to a process that aims at guiding people to
change their lifestyles so as to emulate sustainable natural cycles, where all the discarded
materials are reused as resources again. But this concept doesn’t stop here. It goes beyond,
offering a global wholesomeness to human beings. Zero waste management is one of the
quickest and most efficient ways to address some of the greatest environmental, social and
economic challenges at the local level.
The Potential Benefits of Zero Waste Management:
1) Zero waste mitigates the climate impact

2) Zero waste mitigates pollution and conserves resources
3) Zero waste encourages the development of social equality
4) Zero waste boosts the local circular economy and creates employment opportunities
SEWAGE TREATMENT PLANT (STP):
Need for STP:
Human health and environment are mainly affected by direct disposal of industrial and human
effluents into the natural resources without any treatment. The sewage treatment is necessary to
reduce the toxicity of sewage and maintain a safe and healthy environment, as well as promote
human welfare.
Wastewater treatment is a process to convert wastewater – which is water no longer needed or

suitable for its most recent use – into an effluent that can be either returned to the water cycle
with minimal environmental issues or reused. The latter is called water reclamation and implies
avoidance of disposal by use of treated wastewater effluent for various purposes.”
Why reuse or recycle Water?
Though 70% of earth is surrounded by water only 2.5% of it is fresh water. Out of which 70%
fresh water is in frozen state on Antarctica and Greenland. Only nearly 1% of fresh water is
accessible for usage. In day to day life we use water majorly for washing, bathing, toilet etc. if
we can recycle water for other than drinking purpose fresh water demand can be lowered.
Hence it is very important to treat sewage outlet of every building and reuse treated water for
washing, toilet and floor cleaning.
There are two wastewater treatment plants namely chemical or physical treatment plant, and
biological wastewater treatment plant. Biological waste treatment plants use biological matter
and bacteria to break down waste matter. Physical waste treatment plants use chemical reactions
as well as physical processes to treat wastewater. Biological treatment systems are ideal for
treating wastewater from households and business premises. Physical wastewater treatment
plants are mostly used to treat wastewater from industries, factories and manufacturing firms.
This is because most of the wastewater from these industries contains chemicals and other
toxins that can largely harm the environment.
Wastewater treatment has a number of benefits. For example, wastewater treatment ensures that
the environment is kept clean, there is no water pollution makes use of the most
important natural resource water, the treated water can be used for cooling machines in factories
and industries, prevents the outbreak of waterborne diseases and most importantly, it ensures that
there is adequate water for other purposes like irrigation. In summary, wastewater treatment
process is one of the most important environmental conservation processes that should be
encouraged worldwide.
MARKET PENETRATION STRATEGIES
Market penetration occurs by increasing the sale/consumption of a product or service to current

segments in a given market without changing the product. The growth in sales is usually due to
improvement in marketing mix i.e. improved design, enhanced distribution efforts, and reduced
price or aggressive marketing campaigns. Market penetration strategies helps in determining the
effectiveness of the successful business model and efficacy of the marketing strategy.
TYPES OF MARKET PENETRATION STRATEGIES
1. PRODUCT IMPROVEMENTS
The most widely used market penetration strategy “Product Improvements”. Improvements in
product are imperative to attract target customers and achieve high market penetration. By
improving the quality, the businesses are able to outperform competitors and are able to meet
customers’ expectations which results in attracting new customers and increased sales. The
change whether big or small or of any kind should be significant enough to be noticed by
customers.
Kamal Food Processing industry has taken the initiative for New product innovation according to
the need of consumer. For example they started the production of Beverages and Veg Atta
noodles. And, they are also available in different types of packages.
 50 gms
 100 gms
 200gms
 Family pack (400 gms)
2. PRICE ADJUSTMENTS
This market penetration strategy considered as the star of all the market penetration strategies.
Price adjustment is considered as the most heavily deployed marketing strategy. When a
company peruses this strategy the prices of products undergo reduction. This strategy enables the
company to attract price sensitive consumers and aims at gaining penetration through large
scales volume of a product. The goal is to divert the attention of customers from competitors
products to company’s products. However, the results can be catastrophic for a company if the
strategy is not executed properly. When the prices are dropped the margins also drop, if the
reduction is not supplemented by increased sales volume than either the product would need
modifications or the prices need to be readjusted again.
PRODUCT PRICING OF KAMAL FOOD PROCESSING INDUSTRY:
Kamal noodles pricing 50grm (Rps15)

Kamal noodles pricing 100grm(Rps 30)
Kamal noodles pricing 200grm(Rps 60)
Kamal noodle pricing 400grm(Rps 120)
Current Scenario of Kamal Food Processing industry:
1. Reasonable price
2. Company have high profit
3.1.2 STAFF
The staff refers to the people who are working in the organization, in Kamal Food Processing
industry there are 60 employees including both skilled and unskilled employees, unskilled
workers consists of 20 and skilled employee are 40.
Here the recruitment of the staff is done directly, on the basis of following information
qualification requires any degree holder or ITI, Diploma holder for skilled workers and it
requires employee to be technically strong. They also hire management staff who helps to
oversee the company’s daily activities The company funds are mainly committed towards
employing talent, crew, and acquiring, new updated production equipment on a regular basis.
3.1.3 SHARED VALUE:
Shared value are called super oriented goals, when the model was first developed there are the
core value of the company that are evidenced in the corporate culture and the general work ethic.
They are providing housing facility for their employee.
In Kamal food processing industry, every employee is dedicated to achieving the organizational
goals, the company believes that the business is combined effort of the employees and
management, so that shared value is the element which ensure the success of implementing the
strategy.
3.1.4 SKILLS
Kamal Food Processing industry give more preference to technical skills and also employees are
good in time management and communication. In Kamal food processing industry the employee
are specialized in their own skills, in organization both skilled and semi skilled workers have
being working, skilled workers are in technical department and unskilled workers with non
technical department.
Skilled workers are having the following skills.
1. Finance department :Accounting skills, analysis skills decisions making skills, and they
are able to forecast your cash flow and sales, as well as monitor your profit and loss, they
also need to pay tax. Having financial management skills will help you to run our
business profitability and protect your financial investment.
2. Sales department: Communication, listing, post sales, customer service, it is important to
promote our product or services effectively, providing good customer service and having
a marketing strategy in place will help to generate sales.
3. Production department: Team working skills, operation and control, unskilled workers
are having listing skills, material handling skills.
4. Manager, director, chairman, and all the trainer of training instructor highly capable and
educated.
5. Problem solving: the employee sometimes will encounter problems in our business, this
means you need to able to make good decisions, sometimes under pressure.
6. Networking: building good relationships through networking will helps to grow one’s
business and give you the support you will need.
3.1.5 STYLE
Any one decision making parameter should be studied pertaining to day to day operation to
conclude the style of functioning, it is a way in which something is done, or performed a
particular form or design of something, The company used democratic management style for
achieving organization goals. The task is well assign to the employee based on their designation.
The democratic management style involves managers reaching decision with the input of the
employee but being responsible for making the final decision, employee ideas and contributions
are encouraged but not necessary, communication is both top –down and bottom –up and makes
for a cohesive team.
This type of style is versatile with the advantages of having more diverse perspectives involved
in decision making, as employees are being taken into account before the manager makes
decision, the employees feel valued which increases motivation and productivity.
Management consists of the planning, prioritizing, and organizing work effort to accomplish
objectives within a business organization.
A management style is the particular way managers go about accomplishing these objectives, it
encompasses the way they make decisions, how they plan and organize work, and how they
exercise authority.
Management style vary by company, level of management , and even from person to person, A
good manager is one that can adjust their management style to suit different environment style to
suit different environment and employee.
An individual management style is shaped by many different factors including internal and
external business environment and how one views the role work in the lives of employee
3.1.6 SYSTEM
System is very important in the organization, because now a days the information technology
system has been widely spread, and also every firm must collect their data, and process to
disseminated, the information in a systematic manner across the organization, to run their
business smoothly.
Order processing system: order processing system is a process or work flow association with the
picking, packing, and delivery of the packed items to a shipping carrier and is a key element of
order fulfillment.
Food safety and standard authority of India: They are having a system of submitting the repot for
FSSAI once in a six months, FSSAI will check the quality of the product.
CHAPTER 04
RATIO ANALYSIS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note 2017
2018
Assets
Current assets:
Cash and cash equivalents 113,883
146,535
Trade and other receivables 8, 33 176,653
184,900
Other financial assets 9, 33 11,793
984
Inventories 10 81,015
85,766
Other current assets 11 25,487
25,149
Subtotal 408,832
443,336
Assets held for sale 12 22,081
27
Total current assets 430,914
443,363
Non-current assets:
Property, plant and equipment 13 354,216
375,382
Goodwill 14 254,025
250,685
Intangible assets 14 432,814
418,562
Investments accounted for using the equity method 15 1,233
1,216
Other financial assets 9, 33 20,460
20,955
Deferred tax assets 16 12,701
14,291
Other non-current assets 11 15,663
14,959
Total non-current assets 1,091,115

1,096,052
Total assets 1,522,029
1,539,416
Liabilities and equity
Liabilities:
Current liabilities:
Bonds and borrowings 17, 33 95,654
75,437
Trade and other payables 19, 33 289,521
303,783
Other financial liabilities 18, 20, 33 32,678
30,736
Accrued income taxes 18,773
18,445
Provisions 22 1,385
2,074
Other current liabilities 8,860
8,639
Subtotal 446,873
439,117
Liabilities directly associated with assets held for sale 12 6,215 -
Total current liabilities 453,088
439,117
Non-current liabilities:
Bonds and borrowings 17, 33 211,375
195,436
Other financial liabilities 18, 20, 33 25,306
20,150
Post-employment benefit liabilities 21 11,888
13,258
Provisions 22 2,913
2,702
Deferred tax liabilities 16 66,001
63,494
Other non-current liabilities 5,253
6,377
Total non-current liabilities 322,738
301,421
Total liabilities 775,827
740,538
Equity:
Share capital 23 168,384
1,68,384
Share premium 23 182,404

182,349
Retained earnings 23 364,274
420,638
Other components of equity 23 (24,625)
(56,548)
Total equity attributable to owners of the Company 690,437
714,823
Non-controlling interests 55,763
84,054
Total equity 746,201
798,877
Total liabilities and equity 1,522,029
1,539,416
See notes to consolidated financial statements.
See notes to consolidated financial statements.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Note 2017 2018

Revenue 6, 25 1,234,008
1,294,256
Cost of sales 10,13,14,21 (697,789)
(758,724)
Gross profit 536,219
535,532
Selling, general and administrative expenses 13, 14, 21, 26 (412,444)
(424,897)
Gain on investments accounted for using
the equity method 15 447
137
Other income 14, 27 5,862
14,591
Other expenses 13, 14, 28 (12,129)
(11,806)
Operating income 6 117,955
113,557
Finance income 29, 33 871
1,032
Finance costs 29, 33 (4,384)
(2,777)
Profit before tax 114,442
111,813
Income tax expense 16 (28,267)
(22,979)
Profit for the year 86,175
88,833
Profit attributable to:
Owners of the Company (Note 1) 78,112
80,024
Non-controlling interests 8,062
8,808
Profit for the year 86,175
88,833
Yen
Note 2017
2018
Earnings per share 31 252.79
258.98
CONSOLIDATED STATEMENT OF CASH FLOWS
Note 2017 2018

Cash flows from operating activities
Profit before tax 114,442
111,813
Depreciation and amortization 63,934
63,319
Impairment losses 184
4,177
Interest and dividends income (871)
(893)
Interest expense 2,724
2,365
Gain on investments accounted for using the equity method (447)
(137)
Gain on sale of subsidiaries --
(12,038)
Increase in inventories (7,887)
(4,855)
Increase in trade and other receivables (1,425 )
(4,946)
Increase in trade and other payables 6,453
7,933
Other 3,446
7,211
Subtotal 180,554
173,949
Interest and dividends received 833
850
Interest paid (2,813)
(2,405)
Income tax paid (29,061)
(26,040)
Net cash inflow from operating activities 149,513
146,354
Cash flows from investing activities
Payments for property, plant and equipment and intangible assets (55,339)
(56,929)
Proceeds on sale of property, plant and
equipment and intangible assets 787
715
Payments for acquisition of subsidiaries 7 􀂊
(26,719)
Proceeds from sale of subsidiaries 7 􀂊
24,216
Other 14 1,593
173
Net cash used in investing activities (52,958)
(58,543)
Cash flows from financing activities
Increase in short-term borrowings 32 8,751
4,073
Proceeds from long-term borrowings 32 26,642
9,500
Repayment of long-term borrowings 32 (61,905)
(63,027)
Proceeds from issuance of bonds 32 􀂊
29,883
Payments of finance lease liabilities 32 (8,404)
(6,998)
Dividends paid to owners of the Company (Note 1) 24 (23,484)
(23,793)
Dividends paid to non-controlling interests (5,397)
(6,516)
Payments for acquisition of shares of subsidiaries (171)
(44)
Other 374
54
Net cash used in financing activities (63,593)
(56,868)
Net increase in cash and cash equivalents 32,961
30,941
Cash and cash equivalents at the beginning of the year 84,096
113,883
Reversal of cash and cash equivalents included in assets held for sale 12 􀂊
3,439
Cash and cash equivalents at the beginning of the year 84,096
117,322
Effects of exchange rate changes on cash and cash equivalents 265
(1,728)
Cash and cash equivalents included in assets held for sale 12 (3,439)
􀂊
Cash and cash equivalents at the end of the year 113,883
146,535
RATIO ANALYSIS:
Ratio analysis is not just comparing different numbers from the balance sheet, income statement,
and cashflow statement.
It is about comparing the number against previous years, other companies, the industry, or even
the economy in general.
Ratio look at the relationships between individual values and relate them to how a company has
performed in the past, and might perform in the future,
Ratio analysis is the process of determining and interpreting numerical relationship based on
financial statement.
Ratio analysis is a quantitative method of gaining insight in to a company’s liquidity, operational

efficiency, and profitability by comparing information contained in its financial statements.
The categories of financial ratios that are used for analysis purposes are as follows:
 Performance ratios. These ratios are derived from the revenue and aggregate
expenses line items on the income statement and measure the ability of a business to
generate a profit. The most important of these ratios are the gross profit ratio and net profit
ratio.
 Liquidity ratios. These ratios compare the line items in the balance sheet, and
measure the ability of a business to pay its bills in a timely manner. Chief among these
ratios are the current ratio and quick ratio, which compare certain current assets to current
liabilities.
 Leverage and coverage ratios. These ratios are used to estimate the comparative
amounts of debt, equity, and assets of a business, as well as its ability to pay off its debts.
The most common of these ratios are the debt to equity ratio and the times interest
earned ratio.
 Activity ratios. These ratios are used to calculate the speed with which assets and
liabilities turnover, by comparing certain balance sheet and income statement line items.
Rapid asset turnover implies a high level of operational excellence. The most common of
these ratios are days sales outstanding, inventory turnover, and payables turnover.
Financial ratio analysis is only possible when a company constructs its financial statements
in a consistent manner, so that the underlying general ledger accounts are always aggregated
into the same line items in the financial statements. Otherwise, the provided information
will vary from one period to the next, rendering long-term trend analysis useless.
1. CURRENT RATIO :(2:1)
The current ratio is a liquidity ratio that measures a company’s ability to pay short
term obligations of those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current
debt and other payables.
FORMULA:
Current ratio= Current Assets/current liabilities
YEAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO
2017 430914 453088 0.95
2018 443363 439117 1.00
INTERPRETATION:
The current ratio was 0.95 for the year2017 then it has increased to 1.00 in the year 2018.
The current liability started decrease in 2018.
ANALYSIS:
As per the analysis current assets value is more than compare to current liabilities, high ratio
indicates over capitalization, low ratio indicates under capitalization so that Kamal food
processing industry has more capitalization in market.
2. NET PROFIT RATIO:
Net profit ratio is a profitability ratio which is expressed as a percentage hence it is

multiplied by 100. Net sales include both cash and credit sales, on the other hand,
net profit is the net operating profit i.e., the net profit before interest and taxes.
FORMULA:
Net profit ratio = Net profit/ Net sales* 100
YEAR NET PROFIT NET SALES NET PROFIT RATIO
2017 86175 1234008 6.98%
2018 88833 1294256 6.86%
INTERPRETATION:
The net profit ratio was 6.98% for the year 2017 and then it has decrease to 6.86% in the
year 2018. The sales started increase in 2017 and continued to increase in trend 2018.
ANALYSIS:
At the time of profitability company follows the budgetary technique here every year profit
will be comparing to financial budget of the current year and past year financial
performance of the company, so that compare to 2017 and 2018 firm profitability was
decrease so firm has the less trading capacity in the market.
3. QUICK RATIO: (standard 1:1)
The quick ratio is a financial ratio used to gauge a company’s liquidity. The quick ratio is
also known as the acid test ratio. The quick ratio compares the total amount of cash and
cash equivalents + marketable securities + accounts receivable to the amount of current
liabilities.
FORMULA:
Quick ratio= quick assets/current liabilities
YEAR QUICK ASSET CURRENT LIABILITY QUICK RATIO
2017 349899 453088 0.77
2018 357597 439117 0.81
INTERPRETATION:
The quick ratio was 0.77 for the year 2017 and then it has increased to 0.81 in the year
2018. The current liability started decreased in 2018.
ANALYSIS:
As per the analysis quick asset value is less than current liabilities, high ratio indicates
the liquidity position of the company so that Kamal food processing industry has not the
liquidity position in market.
4. RETURN ON EQUITY RATIO:

The return on equity ratio or ROE is a profitability ratio that measures the ability of a
firm to generate profits from its shareholders investments in the company. In other words, the
return on equity ratio shows how much profit each dollar of common stockholders’ equity
generates.
FORMULA:
Return on equity ratio=net income/shareholder equity
YEAR NET INCOME SHAREHOLDER RETURN ON EQUITY

EQUITY RATIO
2017 1221879 1522029 0.80
2018 1282450 1539416 0.83
INTERPRETATION:
The return on equity was 0.80 for the year 2017 and then it has increased to 0.83 in the
year 2018. The shareholder fund started increasing in 2018.
ANALYSIS:
As per the analysis net income is less compare to shareholder fund, high ratio indicates
high profit generation from shareholder investment, low ratio indicates less profit
generation from shareholders investment so that Kamal food processing industry has
generate less profit from shareholders investment.
5. DEBTORS TURNOVER RATIO:

Receivable turnover ratio of debtor’s turnover ratio is an accounting measure used to
measure how effective a company is in extending credit as well as collecting debts. The
receivables turnover ratio is an activity ratio measuring how effectively a firm uses its
assets.
FORMULA:
Debtors turnover ratio=Net credit sales/average debtors
YEAR NET CREDIT SALES AVERAGE DEBTOR DEBTOR TURNOVER

RATIO
2017 1234008 88327 13.97%
2018 1294256 180777 7.15%
INTERPRETATION:
The Debtors turnover ratio was 13.97% for the year 2017 and then it has decreased to
7.15% in the year 2018. The average debtors started increasing in 2018.
ANALYSIS:
As per the analysis net credit sales is less compare to average debtors, high ratio
indicates better cash position, low ratio indicates low cash position so that Kamal food
processing industry has no better cash position and is not collecting cash frequently.
ANALYSIS OF FINANCIAL STATEMENT:
The current assets in the year 2017, is 430914, and 2018 is 443363, so increase in the
current assets in the year 2018.
The current liabilities in the year 2017, is 453088, and 2018 is 439117, so decrease in the
current liabilities in the year 2018.
From the above analysis it is clear that current assets are more to pay off the current
liabilities. In the year 2018 it is current assets increase and current liabilities is decreased
in 2018.
6. DEBTORS TURNOVER RATIO:

Receivable turnover ratio of debtor’s turnover ratio is an accounting measure used to
measure how effective a company is in extending credit as well as collecting debts. The
receivables turnover ratio is an activity ratio measuring how effectively a firm uses its
assets.
FORMULA:
Debtors turnover ratio=Net credit sales/average debtors
YEAR NET CREDIT SALES AVERAGE DEBTOR DEBTOR TURNOVER

RATIO
2017 1234008 88327 13.97%
2018 1294256 180777 7.15%
INTERPRETATION:
The Debtors turnover ratio was 13.97% for the year 2017 and then it has decreased to
7.15% in the year 2018. The average debtors started increasing in 2018.
ANALYSIS:
As per the analysis net credit sales is less compare to average debtors, high ratio
indicates better cash position, low ratio indicates low cash position so that Kamal food
processing industry has no better cash position and is not collecting cash frequently.
ANALYSIS OF FINANCIAL STATEMENT:
The current assets in the year 2017, is 430914, and 2018 is 443363, so increase in the
current assets in the year 2018.
The current liabilities in the year 2017, is 453088, and 2018 is 439117, so decrease in the
current liabilities in the year 2018.
From the above analysis it is clear that current assets are more to pay off the current
liabilities. In the year 2018 it is current assets increase and current liabilities is decreased
in 2018.
As per the overall financial analysis of the company the Kamal fruits processing industry
is in average financial position in the market.
CONCLUSION:
Ratio analysis is the basic tool of financial analysis and financial analysis itself is an
important part of any business planning process as SWOT, being basic tool of the
strategic analysis plays a vital role in a business planning process and no SWOT analysis
would be complete without an analysis of companies’ financial position. In this way ratio
analysis is very important part whole business strategic planning.
As companies dispatch their long annual report once a year, the financial ratio helps
us to profile a company easily.
CHAPTER 5
LEARNING EXPERIENCE
Our overall experience in the company was very pleasant. The response got from the
management and staff was appreciable. We would like to mention the name of MR.VIVEK sir
who guided us in this project. The atmosphere was very encouraging in the company. In this
study we learnt about management from the practical perspective and learnt about organization
as to how it works in management aspects and the policies and procedures. Totally it was useful
for us in the company. One of the most valuable skills we gained from this internship is the
ability to speak with people in a professional setting. In this internship we learnt to work as a
team without focusing entirely on ourself. In this internship we were introduced to the actual
environment that we learnt about work ethics. It helped us to manage our time better by
maintaining balance between our work and personal life, without harming any of them.
To conclude this project has given us practical exposure in the study of organization. It gave us
the opportunity to study the human behavior and also makes one ready to face different
situations, which normally would come across while on work in the office or factory
environment.
CHAPTER 6
FINDINGS AND SUGGETIONS
FINDINGS:
 The company making good profit this year as compared to last three years and the
company is expanding its business by adding new products.
 For each employee to have control over other resources and expenses, for example, he or
she must have the authority to order supplies necessary for completing his job.
 Good communicational skills.
 Scheduling own work.
 Well co-operated between the supervisors to the workers.
 Pollution level is low.
 Quality of the products is assured by FSSAI.
SUGGESTIONS:
 They are following manual process for filling sauce so they can adopt machinery for that.
 They can extend their area of operation.

 They should utilize the opportunities that are available for advertisement.
 The company need to be computerized fully to do the work easily.
 Safety measures like firefighting, water facilities must be maintained.
CONCLUSION:
 From the report we can know about various things about the company. SWOT analysis
shows strength, weakness, opportunities and threats.
 The SWOT analysis shows a clear picture of the business environment that is operating
in at the present time.
 The company has a good future.
 It is successfully meeting the consumer demand by providing a wide range of food
products.
 It is playing an important role in our economy too by the production of quality food
product.
 We hope the company can obtain its target goal.
To conclude this Food Processing seems to have promising future, provided adequate
government support is there. Food is the biggest expense for an urban Indian household. About
38% of the total consumption expenditure of households is generally spent on food. This share is
declining consistently. As mentioned, food processing has numerous advantages which are
specific to Indian context.
BIBLIOGRAPHY
1. www.ilocis.org
2. www.scribd.com
3. En.m.wikipedia.org
4. Ministry of Food Processing
5. www.biotechnologynotes.com
6. byjus.com

1.1 Industry Profile: 1.1.1 The Food Industry Includes

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Kamal Fruits Processing Industry, Mysore

1.1 INDUSTRY PROFILE

1.1.1 The food industry includes:

 Agriculture: Raising crops, livestock, and seafood.

1.1.2 MARKET SIZE

1.2 FOOD PROCESSING

Fig 1.1: Food Processing

• Dairy, fruits & vegetable processing

• Meat & poultry processing

1.2.1 SEGMENTATION OF FOOD PROCESSING INDUSTRY

I. Based on the level of processing:

II. On the basis of the raw material used:

 Dairy, fruits and vegetable processing.

1.2.2 SEGMENT WISE ANALYSIS

FRUITS AND VEGETABLES

MEAT AND POULTRY PROCESSING

1.4 GROWTH POTENTIAL

India’s food processing sector continues to grow in response to changing demographics,

India’s food processing sector continues to grow in response to changing demographics,

1.5 COMPETITOR ANALYSIS

1.5.1 WHY TO CONDUCT COMPETITOR ANALYSIS

1.5.2 HOW TO CREATE A COMPETITIVE ANALYSIS

1.6 GOVERNMENT INITIATIVE

i. Creation of infrastructure facilities for degree/diploma courses in food

1.6.1 ROAD AHEAD

1.7 INDUSTRY SCENARIO

1.7.1 CRITICAL SUCCESS FACTORS FOR MANUFACTURERS

a) INTEGRATED SUPPLY CHAIN AND SCALE OF OPERATIONS

c) INCREASING PENETRATION IN DOMESTIC MARKET

• Penetration of processed fruits and vegetables overall is at 10 per cent

1.8 COMPANY PROFILE

The main objectives of food processing are:-

 Removal of unwanted matter from the food.

 To increase their sales.

1.8.4 BACKGROUND AND INCEPTION OF THE COMPANY

SOME OF THE COMPANIES FROM WHOM THEY TAKE ORDERS:-

 Shree Sapthagiri Enterprises, Bangalore.

1.8.5 NATURE OF BUSINESS CARRIED

1.8.6 QUALITY POLICY

License Number :- 11217323000206

1.9 PRODUCT PROFILE

 Sauces: Tomato, Soya bean, Chilli.

Fig 1.2: Products

1.9.1 TOMATO SAUCE

Fig 1.3: Tomato sauce

INGREDIENTS USED FOR PREPARING TOMATO SAUCE

1.9.2 SOYA SAUCE

Fig 1.4: Soya Sauce

INGREDIENTS USED TO PREPARE SOYA SAUCE

1.9.3 CHILI SAUCE

Fig 1.5: Chili sauce

INGREDIENTS USED TO PREPARE CHILI SAUCE

Noodles area a type of food made from unleavened dough which is rolled flat and cut, or

Fig 1.6: Noodles

INGREDIENTS USED TO PREPARE NOODLES

1.10 AREA OF OPERATION

1.11 FUTURE GROWTH AND PROSPECTUS

2.1 SWOT ANALYSIS

Fig 1.7: SWOT analysis

 Strengths: Describe what an organization excels at and what separates it from the

2.1.1 ORGANIZATION’S SWOT:

Fig 1.8: Organizations SWOT

 The quality of the product is high.