AN ORGANISATION STUDY OF

KSE LIMITED
VEDAGIRI UNIT
KOTTAYAM
Report Submitted in Partial Fulfillment of Requirement for the

Two year Full Time

Master of Business Administration Program of

M.G. University, Kottayam

By
JOBIN RAJU
REG NO: 121931

Guided by
DR. JOHNEY JOHNSON
PROFESSOR, SMBS, MGU

SCHOOL OF MANAGEMENT AND BUSINESS STUDIES

MAHATMA GANDHI UNIVERSITY
KOTTAYAM
2019 - 2021
 ACKNOWLEDGEMENT

First and foremost I obliged to the Almighty who showered upon us with the blessing and gave

me health and knowledge to complete this organization study successfully.

I take this opportunity to express my gratitude and indebtedness to the Director, Dr. E

Sulaiman, Head of the Department of School of Management and Business Studies for

providing guidance, help and suggestions for the successful completion of this organization

study.

I also express my gratitude to my faculty guide Dr.Johney Johnson, Prof. School of

Management and Business Studies Mahatma Gandhi University, Kottayam which were great

help in giving this work in its present shape.

Last, but not the least I would like to thank our friends who were a source of support and

encouragement for successful completion of the project.

JOBIN RAJU

Place: Kottayam

Date:

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 EXECUTIVE SUMMARY

Kerala Solvent Extraction was incorporated in 1963 under the Indian companies Act
1956. It was registered as a public company was held on 20 October 1963. It was formally
known as solvent extraction limited (KSEL). Now it is come to know as KSE Ltd. The sample
is contacted with a solvent that will dissolve the solutes of interest. Solvent extraction is of
major commercial importance to the chemical and biochemical industries, as it is often the
most efficient method of separation of valuable products from complex feed stocks or reaction
products. Some extraction techniques in involve partition between two immiscible liquids,
others involve either continuous extractions or batch extractions.

The company, KSE LTD. is selected for an in-depth organization study of the company.
The study focused to include collection, analysis and interpretation of various factors within
the company and the industry itself in which the company included. Study which conducted to
understand the structure, function and processes of various areas of operation of the company
and to understand the strategies which are used by the company to perform better in the market.

Mostly the data are collected from company website and its annual reports. Some related web
pages and reviews are also used for the collection and analysis of the data. The organization
study follows the selection of the industry, selection of the company to study, identification of
the objectives, collection of data, its analysis, and interpretation. As the company and its
industry are highly demanding, the data collection process never hurts researcher’s patience.

The report of the organization study mainly dealing with the analysis of the industry and the
analysis of the company. Mainly it give industry’s oligopolistic completion nature where its
few market players are strong and having high potential to succeed. All the findings related
with the company are given in a separate chapter as ‘findings, suggestions and conclusions’.

This report may help full for the company also to list its out opportunities.

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 INDEX
SL CONTENTS PAGE
NO. NO.
01 INTRODUCTION 5
02 INDUSTRY ANALYSIS 9
03 COMPANY ANALYSIS 16
04 ORGANIZATION STRUCTURE 28
05 DEPARTMENT ANALYSIS 30
06 HUMAN RESOURSE DEPARTMENT 35
07 PURCHASE DEPARTMENT 38
08 PRODUCTION DEPARTMENT 41
09 MARKETING DEPARTMENT 49
10 FINANCE DEPARTMENT 54
11 QUALITY CONTROL DEPARTMENT 59
12 FUTURE PLANS AND PROGRAMS 65
13 SWOT ANALYSIS 68
14 FINDINGS 71
15 SUGGESTIONS 72
16 CONCLUSION 73
17 BIBLIOGRAPHY 74

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 CHAPTER - 1
INTRODUCTION

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1.1BRIEF INTRODUCTION TO THE TOPIC
An organisation is a social arrangement which Perseus collective goals, which controls
its own performance and which has a boundary separating it from its environment.
Organisation is the association formed by a group of people who see that there are benefits
available from working together towards some common goals.
Organisation studies are the study of individual and group dynamics in an organisational
setting, as well as the nature of organisations themselves. Whenever people interact in
organisations, many factors come in to play. Organisational studies attempt to understand and
model these factors. Organisational study is essential to any MBA graduate as it helps them to
connect theory with practice.
Organisation study refers to the study of organisation as a whole and getting adequate
knowledge with various departments in the organisation. The study was carried out at KSE
LTD, Vedagiri Unit, Kottayam.

1.2 OBJECTIVES OF STUDY

The overall objective is to conduct a study on organizational structure of KSE Ltd. The
following are the specific objectives of the study.

 To examine the developments of KSE.

 To understand about the functional areas of the company.

 To understand the organization structure of KSE.

 To understand the product profile of KSE.

1.3 SCOPE OF THE STUDY

With an increasing entry of new companies, information of newer technologies and
changing economies, the world of business is changing very rapidly. This organization study
in KSE Limited exposes to the practical side of the business enterprise. This study helps to
understand the history, structure, activity and the products of the company and its contribution
to the Indian cattle feed industry. This study exposes to various departments namely purchase
department, production department, stores department, etc.

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1.5 METHODOLOGY

The success of a research depends largely on the methodology used. The appropriate
methodology will improve the validity of the findings. The following methodologies were
adopted for the study.

1.5.1 IDENTIFICATION OF THE COMPANY

Kerala Solvent Extractions Ltd, head quartered in Thrissur was selected for the organization
study, considering various factors including reputation of the firm, growth of the industry,
availability of data for study, etc.

1.5.2 IDENTIFICATION OF THE OBJECTIVES

The specific objectives of the organization study was identified and then listed out in order of
priority. This help in conducting the organization study in systematic and effective manner.

1.5.3 DATA COLLECTION

Secondary source of data collection is used in this particular research. Secondary data were
collected through literature reviews which includes company's internal records, publications,
annual reports, journals, statutory report, company's official website and other websites, news
reports etc.

1.5.4 ANALYSIS AND INTERPRETATION

The data collected must be properly analyzed to evaluate and enhance the data quality. The
analysis is done to identify the actual meaning of the data which helps in proper interpretation.
Data analysis involves working to uncover patterns and trends in data sets and data
interpretation involves explaining those patterns and trends.

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1.5.5 DOCUMENTATION

After the analysis and interpretation of data, the information is documented in the form of
organization study report, which gives an elaborate report on the organization study.

1.6 LIMITATIONS OF THE STUDY

 As the study was conducted during a short period as a part of the course curriculum, so
a detailed study of all the functions in the organization could not be completed within
this period.
 The company’s authorities could not disclose matters relating to some functional areas.
Hence some areas could not be studied extensively.

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 CHAPTER – 2
INDUSTRY ANALYSIS

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2.1 ABOUT INDUSTRY ANALYSIS

Industry analysis is a tool that facilitates a company's understanding of its position relative to
other companies that produce similar products or services. Understanding the forces at work in
the overall industry is an important component of effective strategic planning. Industry analysis
enables business owners to identify the threats and opportunities facing their businesses, and
to focus their resources on developing unique capabilities that could lead to a competitive
advantage.

Industry analysis is a market assessment tool used by businesses and analysts to understand the
competitive dynamics of an industry. It helps them get a sense of what is happening in an
industry, i.e., demand-supply statistics, degree of competition within the industry, state of
competition of the industry with other emerging industries, future prospects of the industry
taking into account technological changes, credit system within the industry, and the influence
of external factors on the industry.

2.2 INDUSTRY OVERVIEW

Growth in milk sector has occurred mainly through co-operative efforts. The milk
collection centers started through co-operative effort and collected milk from villagers in
quantities as small as liter and gradually started to provide other services to farmers, including
education, artificial insemination, and veterinary health support and feeding. Small farmers
became prosperous, loan facilities were made available through banks, and member farmers
started to share the profits from co-operatives .Co-operative society also set up their own
computerized feed plant. They began to own modern computerized as well equipped milk
processing plants from which they produce and market pasteurized milk, butter oil, chocolate,
ice-cream from milk, sweets, which are very popular with Indian consumers. Today the feed
production capacity of the co-operative society is about 0.7 million tons per year.

The solvent industry has achieved a phenomenal progress and at present there are 520
units having overall oil cake or oil seed processing capacity of more than 25.6 million tons per
year, which included rice bran processing capacity of more than 9.9 million per year. The
solvent extraction plays the important role in the oil economy. Solvent extraction in India was
started in 1945. It had to struggle for more than 20 years to establish it.

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CRISIS OF COCONUT INDUSTRIES IN KERALA IN 1960

In the 1960’s there was a crisis in coconut oil extraction industry in Kerala. After
conversion from wooden Ghani’s to rotaries the cost of the production had increased
considerably. By using this new method they were able to extract more oil from the coconut
cake. Earlier 20% of the oil was retained in the coconut cake, now it has reduced to 12%.
Although Kerala produces 80% of copra produced in the country large part of it was sold to
other state as copra itself and they were earning good profit when mills in Kerala wasn’t able
to get enough copra for their daily needs. When oil industry in other parts of the country was
thriving in Kerala it was struggling.

So they understood the need for modernization of their mills. At that time Dr. P. S.
Lokanathan committee set up to study the feasibility of starting new industries in Kerala,
recommended of establishment of 3 solvent plants in Kerala and it was also proposed that one
should be located in Thrissur itself.

COCONUT OIL MILLER’S CO-OPERATIVE SOCIETY

Lion share of copra went to mills in Bombay and they were able to generate
good profits. To overcome the situation a co-operative society formed by name
Coconut Oil Miller’s Co-operative Society and it was decided that this society would act as
an agent of state trading corporation for distribution of copra. By seeing the performance of the
Bombay group an investigation department was assigned to investigate it. Then they
found out that they were using expeller mills for extracting oil and was able to
reduce the oil content up to 6%. The industries in Kerala later began to follow it.

CATTLE FEED INDUSTRY

From the beginning KSE Ltd marketed the buy product obtained from its solvent
extraction division in the brand name of Jersey Copra Cake. Most of the progress
in the cattle feed sector has come about in the past 30 years only. There are only few cattle
feed units in the country especially in Kerala. The cattle industry of the state has been utilizing
the indigenous raw material i.e. coconut cake, which is the residue left after the extraction of
oil from copra which is mainly used as cattle feed. Coconut cake contains four to five per cent
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oil is generally used for industrial purpose and de-oiled cakes is used to make mixed cattle
feed.

In Kerala the rotary cake was used as a cattle feed and actually this excessive oil on
cakes reduced the keeping quality of the cake and also upset the digestive system
of the cattle e. In foreign countries, the cattle is feed only with de-oiled cakes and according
to the dairy experts, the milk and fact contend of milk depends solely on
t h e p r o t e i n contend of the feed. All these factors stress the importance of having
a few cattle field industry in the state.

Thus in 1996, KSE Ltd. Entered the cattle field industry by setting up the new plant for
manufacturing ready mixed cattle feed. During the last three decades KSE has been acting as
a leader in ready mixed cattle feed industry of the country. Today, KSE Limited commands the
resources, manufacture a range of livestock feed in high volumes, driven by the commitment
to high standards of quality.

DIARY INDUSTRY

Most of the progress in the dairy sector has come about in the past 25 years only. Till
1970, the country’s milk production increased merely by one per cent a year. But
after the intensification of cattle improvement programme through artificial
insemination, using sasses of exotic breeds and launch of operation flood, the production
started rising rapidly from the mid 1970’s.

The transformation of India from a milk deficit to a milk surplus

c o u n t r y i s essentially the result of an intensive campaign launch by the Govt. and semi
Govt. bodies to promote animal husbandry as a means of generating income for the landless
poor.

Many of these producers have organized themselves into co-operative under

the umbrella if the National Dairy Development Board (NDDB) which had been
running a highly successful animal husbandry promotion programme named Operation Flood.

The private sector has now entered into this field in a big way, capitalizing on the
availability of cheap surplus milk to produce various kinds of dairy products for

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the domestic and international market. Several dairy products like skimmed milk
powder, whole milk powder, and infant milk foods of western origin are now being
produced in India. A variety of cheeses, milk drinks, ice creams, pasteurized butter
etc. which, were very common in this country till a few decades ago are now
available in abundance in department stores of big and small cities.

The main objective of this programme is to build a viable and self-sustaining national
dairy industry capable of meeting the domestic demand for fresh liquid milk and milk products
and competing in the international markets.

THE FUTURE OF THE INDIAN FEED INDUSTRY

At the beginning of the twenty-first century, India has a population of 1 billion people.
Although the annual growth rate has slowed from 2 to 1.8 percent, the base is so broad that
changes in population dynamics are not perceptible. The population may stabilize by sometime
between 2030 and 2040 if all sections of society support family planning wholeheartedly. The
purchasing power of the middle class is growing (the middle class accounts for approximately
300 million people) and food habits are also changing.

The Indian economy is growing at the rate of 6 to 8 percent per annum. The livestock
industry in India is the second largest contributor to gross domestic product (GDP), after
agriculture, and accounts for 9 percent of the total. Consumption is likely to increase as
follows: per capita milk from 240 to 450 g per year; per capita eggs from 40 to 100 per year;
and per capita broiler meat from 1 000 to 2 000 g per year.

A major change is occurring in India on the economic front. The country has adopted a
model that lies midway between liberal and public sector production, but growth has been
affected by the poor performance of most of the public sector units, rising government costs
and fiscal deficit, and the economy has suffered. A process of liberalization was set in motion
by the government and has been implemented for the last eight to ten years. This has caused
India to open up and invite investment from multinationals, liberalize imports, reduce
government expenditure and remove public sector businesses. It also means that the days of
nationalization, unnecessary government controls and restrictions will soon be over thanks to
progress in the country's economy.

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 India has entered into an agreement with its trade partners under the World Trade
Organization (WTO). The changes brought about by the liberalization process will be slow but
certain. The government is opening up imports in a phased manner, and it is expected that this
process will be completed by April 2019. In the meantime, about 930 items, including
agricultural products, will be open for import under open general license from April 2018,
making it possible to import dressed chicken, milk and milk products.

Various livestock industry associations have taken issue with such imports in an attempt
to protect their members. If the livestock industry is affected, the feed industry will also be
affected. The Government of India has raised the tariff on all poultry and poultry products from
35 percent to the WTO boundary level of 100 percent. It therefore appears that there will be a
level playing field.

In view of the expected rise in per capita consumption of chicken meat, eggs and milk,
livestock production and productivity will grow. The dairy industry, which is cooperative-
based, is growing with the increased capacities of milk processing units. The population of
cross-bred cattle and buffaloes is also growing. Milk is very popular in India. The poultry
industry is developing towards vertical integration and a few multinational companies have
already entered the Indian poultry business. Although the live bird market currently accounts
for about 90 percent of the total market, it is expected that the consumption of dressed chicken
will grow in the next five years, from the existing 10 percent to 25 percent or more. This would
mean establishing very hygienic and scientific processing units. Cold chains, branded chicken,
chicken cuts, etc. will be introduced and, depending on the success and consistent quality,
consumer preference for dressed meat will grow.

The next decade will see significant changes in restructuring, mergers, acquisitions,
amalgamations, joint ventures, diversification, integration and efficient service chains, e-
commerce and use of the latest information technology in global tenders, trading, export/import
and other commercial activities. At the root of all these developments will be the scientific
development of feed manufacturing technology. The Indian feed industry will increasingly use
biotechnology, more scientific formulations, new molecules and natural and herbal products to
improve animal productivity. Indian agriculture will also use biotechnology and genetically
modified organisms (GMOs) to support the feed industry, which is entering a very exciting
phase of growth for the next decade
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 2.3 SWOT ANALYSIS
In cattle feed production, about 90 percent of the input is feed ingredients like, maize,
brans, meals and oilcakes and feed additives like, multivitamins, mineral mixes, amino acids,
etc. The production of maize has grown steadily in the last decade or so, from 14 million metric
tonnes in 2004-05 to 26.26 million tonnes in 2016-17 registering a compound annual growth
rate of 5.5 percent. During 2009-10 there was a decline in production primarily due to drought
that affected production of kharif crops in the country. Maize is grown throughout the year in
India. It is predominantly a kharif crop with 85 percent of the area under cultivation in the
season.

 STRENGTH
- Availability of inputs
- Availability of technology
- Availability of ready market
- Low wastage in production
- Reasonable economic margin

 WEAKNESS
- High Susceptibility to seasonal price fluctuations
- Lack of adequate quality control
- Low responsiveness of milk productivity to feed product under field conditions
- Inadequate storage facilities

 OPPORTUNITIES
- Rapid commercialization of dairy
- Export potential
- Government support to agro industries

 THREATS
- Mounting competition
- Rising input prices
- Declining total factor productivity and technical efficiency

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 CHAPTER – 3

COMPANY ANALYSIS

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3.1 ABOUT COMPANY ANALYSIS

A company analysis is a thorough study done to ascertain a company’s health in any

number of areas. There are a variety of ways to complete company analyses, depending on the
areas in question, but the focus is typically on feasibility, productivity and an overall view of
the corporate financial health. Ultimately, a company analysis can be used as a snapshot of the
company’s strengths, weaknesses and where it’s headed.

Company analysis include the study of Companies business, its internal and external
environment, its saga of success or failure, its growth or decline, its stakeholders, their
expectations, competitors, collaborators and their strategy, products/service quality analysis,
business environment, financial performance analysis, operational strategy, business strategy,
corporate strategy, technology adoption strategy, growth and expansion strategy, marketing
strategy, human resource management and retention strategy, business model, leadership and
decision making effectiveness, automation and information technology adoption, struggle for
sustainability, revenue growth rate, company profitability, research & development,
innovation, environmental responsibility, corporate social responsibility, future plan, etc.
Depending on the nature of the business, business model, and the size of the company, some
of the above factors applicable should be studied to collect relevant data for further analysis.
The data related to the above factors can be collected by many sources which include company
website, interviews conducted to company personnel, and a questionnaire-based survey
conducted on stakeholders, articles published in different magazines and journals, financial
statements, annual reports, and any other sources of information.

3.2 COMPANY PROFILE

Kerala Solvent Extractions Limited now known as KSE Limited was
established in 1963 by a handful of coconut millers in and around Irinjalakuda with a vision to
overcome the crisis of the coconut oil industry. Initially started as a solvent extraction plant,
the company now produces 750 to 850 MTs of coconut cake a day with four cattle feed
production units two solvent extraction plants. The company has diversified into the area of
dairying by establishing two diary plants for the production of pasteurized milk and milk
products. It has obtained ISO recognition for its commitment to quality and professionalism.

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ORIGIN OF THE ORGANIZATION

It was in 1963 that Kerala Solvent Extraction Limited, now known as KSE Limited,
entered the solvent extraction industry setting up the very first solvent extraction plant in
Kerala. The solvent extraction plant went on stream in 1972 and in 1976, a new plant was set
up to manufacture ready mixed cattle feed.

The last three decades have seen KSE emerging as a leader in solvent extraction and
ready mixed cattle feed in the country. Today KSE commands the resources, expertise and
infrastructure arrange of livestock feed in high volumes, coconut oil from coconut cake and
refined edible oil.

Driven by a commitment to high standards of quality, KSE has not only won customer’s
confidence but also national recognition through several awards and accolades. With modern
manufacturing facilities spread over three states, KSE caters vast beet stretching across
southern India and enjoys a significant presence in exports too. Since the early days, KSE has
endeavored to supply products to customers through an extensive network of dealers and
retailers, which form a dedicated force behind the success of KSE. It is a matter of pride that
KSE is a house hold today.

With a strong commitment to customers and product quality and being cost competitive,
KSE stands poised to meet new challenges. The copra crushing industry has been in existence
in Kerala for decades and has been the most important basic industry in state utilizing the
indigenous raw materials viz., coconut. During the 60’s the oil millers in Kerala used wooden
village Ghani’s operated by bullocks which left about 80 per cent oil in the cake. Later iron
rotaries driven by electricity were used but they left about 12 to 13 per cent oil in the cake.

But in other part of the world including other states in India, giant expellers came up
following by the solvent extraction plants. Thus oil millers outside Kerala obtained an extra
amount of oil by crushing copra subsequently processing the cake through solvent extraction
plants. This new technology enabled the millers outside Kerala to take away a large portion of
the copra from our state, starving our local industry. We could not keep the pace with the time
due to the lack of capital and had to face tough competition from other states.

In 1960, a committee was appointed under the chairmanship of Dr. Loganathan to study
the feasibility of starting new industries in Kerala. Based on the techno-economic survey

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conducted, the committee recommended for the establishment of the three solvent extraction
plants in Kerala and one of them in Thrissur district.

The oil mill owners in and around Irinjalakuda who were also thinking in similar lines
and saw the opportunity and look the initiative to establish a solvent extraction unit and for this
purpose they brought 9.6 acres of land in the name of Sri. K V Devassi and Sri. K L Francis
and also applied for the industrial undertaking license.

They decided to start it as a public limited company, issuing shares to almost all the oil
millers who were interested. For this purpose on 1st May 1963, a meeting was held which was
presided over by Sri. K V Devassi and attended 17 members. Sri. K V Devassi was elected as
the chairman and 10 others were elected as Directors. The Directors were Sri. K L Frncis, Sri
T O Paul, Sri. N P Venkittarama Ayyer, Sri. M S Menon, Sri. A P George, Sri. E T Joseph, Sri.
P L Ouseph, Sri. M C Paul, Sri. M P Kochudevassi, Sri. A Narayan Swami.

On 25th September 1963, the Kerala Solvent Extractions got certificate of incorporation
(No.2028) from the Registrar of Companies, Kerala. The first formed meeting was held on 20th
October 1963 and in this meeting, Sri. K V Devassi was elected as the chairman and Sri. K L
Frnacis as the Managing Director.

The initial capital of the company was Rs.4,17,500 consisting of 4175 shares of Rs.100
each subscribed by the promoters. The initial capacity of the plant was 40 tons per day. There
were 23 staffs and 28 workers initially.

On the road to success there were many hurdles in the beginning. Mobilization of capital
caused the greatest challenge. But determination and optimism paid of. The solvent extraction
plant was on stream in 1972 and in 1976 a new plant was set up at Irinjalakuda to manufacture
ready mixed cattle feed, which was a pioneering step. Thus the KSE Limited had given
Irinjalakuda an important place in the industrial map of Kerala and showed us how to convert
a waste material into national income.

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IRINJALAKUDA UNIT
The pioneering plant of KSE at Irinjalakuda is unique in many ways. It was
the first solvent extraction plant in Kerala. It was the first major factory in the locality spread
over 15 acres. It was hear that KSE set up its first cattle feed plant. The plant embodied the
spirit of the enterprise of a group of committed people, who wanted to usher in an era of
modernity into a traditional society and change the industrial landscape of the state. Naturally,
today the Irinjalakuda plant enjoys of flagship states and commands an edge on infrastructural
strength. Taking great strides technological development, the process of computerization in
plant and office was initiated way back in 1987. Micro processers have been in using in the
production line since 1989.

Research and development plays an important part in the activities of the KSE,
central R & D unit is located here. The plant houses a modern laboratory. The quality control
cell here leads and guides other units and formulates stringent standards. The chief Nutritionist
and Assistant Manager of quality control are also based here.

A proud symbol of growth, the Irinjalakuda unit is an inspiring force for the
entire KSE family. In 2007, company decided to install 500 TPD cattle feed production in the
unit. This unit acquired ISO 9001 – 2000 accreditation.

SWAMINATHAPURAM UNIT
Sale of KS cattle feed in selected markets in Tamil Nadu was started as early as
1984. To enable the company to extend its products and services to whole of Tamil Nadu, a
new production unit was set up at Swaminathapuram in Dindigul district of Tamil Nadu. A
solvent extraction plant was started the very next year. Spread out on 22 acres of land on the
banks of river Amaravathi, this Rs.3.5 crores plant works round the clock. Keyes Forte is also
manufactured in this unit. A model Diary farm with high yielding animals is also maintained
in the unit for conducting feeding trials and other experiments.

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VEDAGIRI UNIT

The third cattle feed plant of the company with a daily production capacity of 240
MTs started operation at Vedagiri in Kottayam district, in March 1996. This Rs.6 crores
project, fully financed from internal resources, was formally inaugurated on 17th August, 1996.
This unit is built on a spacious area of 10 acres. Utilizing highly advanced technological
features, this unit marks a new chapter in the cattle feed manufacture.

VEGETABLE OIL REFINING PLANT

In 1195, the company explored the possibility of refining solvent extracted oil and
marketing it in various states in India, the company commissioned a vegetable oil refining plant
in December 1995, with a capital investment of Rs.1 crore, wholly raised from internal
accruals. The company also refines sunflower expeller oil and markets it in the name KSE
supreme.

PALAKKAD UNIT

A recent addition to the KSE family is the livestock feed plant at Palakkad. With a
manufacturing capacity of 120 TPD, this plant caters predominantly to the needs of the northern
districts of Kerala such as Palakkad, Malappuram and part of Calicut.

KORATTY UNIT

Company acquired land from Kinfra Small Industries Park, Koratty, Thrissur district
and installed 200 TPD Solvent Extraction Plant and 100 TPD Physical Refining Plant with a
capital outlay for refining vegetable oil. Solvent extracted coconut oil is refined in the plant
and made edible. Commissioned Fraction Plant in March 2009.

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 VISION

We shall endeavor to maintain leadership through quality products, explore new

avenues in product development and marketing, create a stronger bond between the
management, work force, dealers and customers, contribute to social development and rural
upliftment, and constantly strive for excellence in all spheres of our activities.

MISSION

To provide maximum benefit to the dealers and to give good quality products to
the customers at a fair profit. To increase the turnover and to widen their markets to all the
zones etc.

OBJECTIVES

The Memorandum of Association of the company lists out altogether 38 broader objectives.
Out of these, the important objectives for which the company is established as follows:

1. To produce, manufacture, extract purchase refined, prepare, import, export, sell and
generally to deal in oil form seeds, oil cakes and other oil bearing materials. To carry
on business of the refining and hydrogenation of oil and the manufacturing of by-
products share from and of trades connected there with.
2. To acquire correct, construct, establish, operate and maintain oil mills, extraction
plants, ghee plants, workshops other works.
3. To purchase for the purpose of the business of the company, oil neutralizing, in
washing, tying, bleaching, filtration and hydrogen plant, boilers, tanks, engines, electric
motor shafting tin plates punch machines and other machines.
4. To plant, cultivate and purchase all kinds of food stuffs, oil seeds, vegetable and other
produce of land and to sell and deal in them.
5. To make, manufacture and prepare mixtures and fertilizers to install and run bone mills
and to buy, sell or trade in trade in any fertilizers and manures of kind.

GOALS

 To achieve a minimum compound growth rates on sales turnover.

 To promote sales turnover.
 To provide for the optimum use of technological innovation.

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BOARD OF DIRECTORS

Board of KSE Limited consists of ten Directors out of which the Chairman and
Managing Director is the Chief Executive Officer of the company. Moreover there is one
executive director who is looking after the daily transactions of the company. The Board
invariably meets in every month and evaluates the performance of the company. All major
policy and business decisions are taken after due deliberations and with mutual consensus. A
management committee with five directors as its members is functioning to assists the Board,
which is regularly meeting, twice in a month, in order to review the company and proposals
that are to be placed before the Board and mark recommendations there on.

MILESTONES OF SUCCESS
 1972 : The company started production in Irinjalakuda with a Solvent Extraction plant
With a capacity of 40 MTs per day.

 1976 : A new plant was set up in Irinjalakuda to produce 50 MTs of ready-mixed

cattle
Feed.

 1979 : Production capacity of Cattle feed Plant in Irinjalakuda increased to 60 MTs

per
day.

 1980 : Solvent Extraction Plant capacity in Irinjalakuda increased to 60 MTs per day.

 1984 : The Solvent Extraction Plant capacity of Irinjalakuda increased to 80 MTs per
day.

 1987 : Cattle feed Plant at Irinjalakuda capacity increased to 180 MTs per day.

 1988 : Cattle feed plant in Swaminathapuram, Tamil Nadu started production Capacity
100 MTs per day.

Page | 23
 1989 : Solvent Extraction Plant of Swaminathapuram unit with a capacity of 120
MTs per day started production.

 1990 : Cattle feed production capacity at Swaminathapuram unit increased to 150 MTs
per day.

 1991: Palakkad Branch started.

 1994: Keyes Forte, the new feed supplement for cattle introduced.
Cattle feed production capacity at Swaminathapuram increased to 180 MTs per
day.

 1995: Calicut Branch opened.

 1996: 240 TPD cattle feed Plant at Vedagiri in Kottayam District started operation.
Company renamed as KSE Limited. (Formerly Kerala Solvent Extractions
Limited)

 1998 : Company acquired its fourth manufacturing unit at Palakkad for manufacturing
Cattle feed.

 1999 : A modern CHILDRENS' PARK AND INFORMATION CENTRE was

Completed at Irinjalakuda for the benefit of the Public. Company introduced
“K.S. Deluxe Plus" the Pelleted feed in HDPE bags for Kerala Market.

 2000 : Company started production and marketing of Pasteurized Milk and Milk
products from Konikkara Dairy, Trichur District,Kerala and Thalayuthu
Dairy,
Palani Taluk, Tamil Nadu.

 2002 : Cattle feed production at Irinjalakuda unit increased to 195 MTs per day.
'VESTA' Ice Cream launched.

Page | 24
 2003 : Started production of Cattle feed in a leased plant at Edayar, Kalamassery.
Cattle feed production at the Swaminathapuram unit increased to 195 MTs per
day.

 2004 : Acquired Land from KINFRA for starting the new project of 200 TPD
Solvent Plant and 100 TPD Oil Physical Refining Plant at Kinfra Park, Koratty.
ISO 9001:2008 Accreditation for Irinjalakuda.

 2005 : Cattle feed Production capacity at the Irinjalakuda unit increased to 210 MTs
per_day.
 2006: The 200 TPD Solvent Extraction Plant at Koratty commissioned.
100 TPD Physical Refining Plant at Koratty commissioned.
Solvent Plant at Irinjalakuda dismantled.

 2008 : Ice cream production unit commissioned at Thalayuthu.

 2009 : Cattle Feed production capacity at Swaminathapuram increased to 200 MTs per
day.
Commissioned Fractionation Plant at Koratty.
Commenced 500 TPD Fully State-of-the-Art German Technology Animal
Feed Plant at Irinjalakuda.

 2010 : Ice cream production unit at Vedagiri commissioned.

Page | 25
PRODUCTION UNITS
:KSE LIMITED,
IRINJALAKUDA UNIT, KSE LIMITED,
P.B.NO.20, IRINJALAKUDA -680121, VEDAGIRI UNIT,
PH: 0480 2825476/2826676, KURUMULLUR PO,
FAX: 0480 2825244 ATHIRAMPUZHA,
KOTTAYAM DIST – 686632,
PH: 0481
2536829/2538718/2538719,

KSE LIMITED, KSE LIMITED,

PALAKKAD UNIT, DAIRY DIVISION, KONIKKARA,
OTHUNGODE, PALAKKAD – 678020, MARATHAKARA PO,
THRISSUR – 680320,
PH: 0491 2536332/2538451/2531858 PH: 0487
2356394/2351501/2358806

KSE LIMITED, KSE LIMITED

(KINFRA UNIT), XXXIII/2837, PAROPADI,
KINFRA PARK, NELUKETTU ROAD, MERIKUNNU PO,
KORATTY – 680306 CALICUT-3
PH: 0495 2370056/2900194

KSE LIMITED, KSE LIMITED,

SWAMINATHAPURAM UNIT, DAIRY DIVISION, THALAYUTHU,
SWAMINATHAPURAM, DINDIGAL DIST – 624618,
DINDIGAL DIST - 642113, PH: 04252
PH: 04252 252860/252867
252560/252561/252562/252563,

Page | 26
CATTLE FEED SEGMENTATION

CATTLE FEED

PELLET MASH

PELLET SUPREME ORDINARY SUPER SPECIAL

DELUXE
PELLET MASH MASH MASH
PLUS

PRODUCT PROFILE
KS : One of the all-time favorites in the cattle feed.

K S Super : A special cattle feed that has won immense popularity.

K S Deluxe Pellets : The choice of caring farmers for better results.

K S Supreme Pellets : A bypass protein feed with ISI marks. Specially made for
cattle

with superior germ plasma and high production potential.

Jersey : Protection rich, tasty, de-oiled coconut cake.

Page | 27
Keyes Forte : Keyes Forte is a feed supplement for cattle. It contains

Vitamin A, D3, E and all. The required trace minerals at

Recommended quantities.

K S Supreme : Refined sunflower expeller oil. Solvent extracted coconut

oil.

Refined solvent extracted coconut oil.

MILK PRODUCTS OF THE COMPANY INCLUDES:

K S Milk

K S Ghee

K S Curd

Butter Milk

Vesta Ice Cream

DISTINCTIONS THAT MAKES KSE NO: 1

 Kerala‘s first solvent extractions plant.

 No.1 in processing coconut oil cake though solvent extraction in India.

 Winner of S.E.A. national award and state productivity and safety.

 Front-ranker in mixed cattle feed production in India.

 Recognition from Annual Nutrition Society for contribution in cattle feed

manufacturing.

 Kerala’s first export mixed cattle feed.

 The name trusted by millions of people.

Page | 28
AWARDS AND RECOGNITIONS

1. “Best Productivity Performance for cattle feed in India” award from National
Productivity Council continuously for eleven years 1996-97 to 2006-07.
2. The Solvent Extractors Association of India – ‘S.E.A Award’ for highest processor of
coconut cake in India continuously for 19 years including 2008-09.
3. Kerala State Productivity Council Award.
4. “Top Cattle feed Award” for aflatoxin free feed from the Indian Association of
Veterinary Pathologists (IAVP) and Kerala Agricultural University.
5. Tamil Nadu Productivity Council Safety Award.
6. Animal Nutrition Society of India award for Company’s contributions for propagation
of balanced compound livestock feed in India.
7. Industry Excellence Award from the Indian Society for the Study of Animal
Reproduction for the year 2001.

SOCIAL RESPONSIBILITY

KSE Ltd is in the forefront for meeting its responsibility towards the society. KSE has
contributed liberally towards the social events.

1. Construction and maintenance of a modem children’s information centre “KS PARK”

in irinjalakkuda at the cost of Rs 80 lakhs.
2. Construction of footpath cum handrail for public at cost of Rs 10 lakhs.
3. Contribution of Kargil Fund Rs 5 lakhs.
4. Contribution to Gujarat earthquake relief fund Rs 10 lakhs.
5. Contribution to Bharatia Vidya Bhavan in Irinjalakkuda Rs 1 lakhs.
6. Contribution to St. James Hospital Rs 3 lakhs.
7. To Amala cancer centre – hospital and Research Centre Trissur Rs 3 lakhs.
8. The Chief Minister relief fund Rs3 lakhs.
9. Mahatma Gandhi
10. For construction of class rooms of Unnai Warier Smarakalanilaya Rs20000
11. To St Joseph Collage for women Rs 80000
12. For construction of blood bank attached to the Government Taluk Hospital Rs 25000

Page | 29
INDUSTRIAL RELATION
The company has 926 employees in its roll on 31.3.2011. The company is an expectation
to the advice labor conditions existing in Kerala. During its working of 39 years, the company
had lost few man-days by labor unrest. However, during the year under review, the Vedagiri
unit was under lock out from 30.09.2010- 14.02.2011. Section of the employees of that unit
resorted to slowing down of production to pass their demand for an interim hike in their
remuneration during the validity field of settlement and management was forced to declare the
lock out.

After several round of negotiation, the management arrived at a settlement with the
employees on their agreeing to drop their demands and the lock out was lifted. During the
lockout period management had made alternate arrangements to ensure regular supply to the
dealers and the performance of the company had in no way affected. There were no labor issues
of serious nature in any other unit of the company. The management continues to maintain
cordial industrial relation with its employees in all Units and is attending to their grievances
with an open mind.

COMMITMENT IN RURAL DEVELOPMENT

KSE has taken up rural development as a major corporate task and responsibility. The
agrarian rural society is the back born of the nation’s economic structure and KSE has always
been active in supporting and promoting images in their vacation.

Today Kerala and Tamil Nadu comparison the largest market of KSE cattle feed. The
majority of their deposal over 600 KSE dealers ensure that the KS Range of cattle feed is
available to them at a lower price suggested and enforced but the company KSE has made
arrangements for the supply of cattle fed in villagers directly from dealers and through retailers.

Besides beginning range of trusted products to the villages KSE also imparts valuable
advice and instruction regarding animal has boundary and cattle to the villagers.

Page | 30
PROGRESSIVE MANAGEMENT AND UNIQUE WORK CULTURE

The management KSE rests on a eminent team of personalized from the cultural and
financial and social system of society who from the BOD. The Chairman and MD executive
director and whole time Director head the operations of the company and overseas its smooth
functioning. The day to day management of various units is carried out by experienced
professionals under a chief general manager. Who lead and motivate a dedicated world force.

The total number of employees in various units of KSE now exceeds 1000. Besides KSE
gives endured employment to over 2000 people, through its distribution network across Kerala
and Tamil Nadu.

The work culture of KSE is an exception to the rule in the strife ridden industrial climate
of Kerala. During the quarter century of it is operation, the days lost to industrial unrest is only
23 days. This fact illustrates the cordial work environment and speaks of the extra ordinary
relationship between the management and employees.

Periodic appraisal and renewal of agreements between the management and workers
credit a responsible attitude and productive atmosphere. The united efforts mutual test and
progressive vision of management and force is the cornerstone on which the success of KSE is
based.

Page | 31
 ORGANIZATION STRUCTURE

BOARD OF DIRECTORS

CHAIRMAN / MD

EXECUTIVE DIRECTOR

CHIEF GENERAL MANAGER

GENERAL CHIEF CHIEF CHIEF CHIEF WORKS

MANAGER MARKETING PURCHASE NUTRITIONIST PERSONNEL MANAGER
FINANCE MANAGER MANAGER MANAGER

PLANT MANAGER

FINANCE EXECUTIVE EXECUTIVE PERSONNEL SENIOR SENIOR ASSISTANT

MANAGER SALES PURCHASE OFFICER CHEMIST CIVIL MANAGER
EXECUTIVE ELECTRICAL

JUNIOR OFFICE SENIOR OFFICE JUNIOR MAINTANANC

OFFICER ASSISTANT ASSISTANT CHEMIST E EXECUTIVE
ASSISTANT

SENIOR RK EXECUTIVE
ATTENDER
ASSISTANT CLERK (PRODUCTION
)

CLERK
GODOWN
SENIOR SHIFT OFFICER
SUPERVISOR

CLERK

OPERATOR BOILER ELECTRICIANS GODOWN

OPERATOR ASSISTANT

WORKER S TALLY
CLERK
WORKER S

Page | 32
DEPARTMENT ANALYSIS

Page | 33
HUMAN RESOURCE DEPARTMENT

Page | 34
HUMAN RESOURSE DEPARTMENT
Human resource is of paramount importance for the success of any
organization. It is a source of strength, aid and, it is the most important asset of an organization.
Human resources are the wealth of an organization which can help it in achieving its goals.
Human resource management is the planning, organizing, directing and controlling of
procurement ,development, compensation, integration, maintenance and reproduction of
human resources to the end of the individual, organizational and societal objectives are
accomplished.

Human resource management is the qualitative improvement of human beings

who are considered the most valuable assets of an organization. It is the strategic approach to
the acquisition, motivation, development and management of the organization’s human
resources. The primary objective of HRM is to ensure the satisfactory accomplishment of the
objectives of an organization and of its employees and management. It helps workers in
accomplishing individual and organizational goals.

The HR manager organizes the HR department to carry out the functions

entrusted to him. In KSE personnel department functions are controlled by Personnel Manager.

DEPARTMENT STRUCTURE

CHIEF PERSONNEL
MANAGER

PERSONNEL OFFICER

OFFICE ASSISTANT

Page | 35
FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

1. Recruitment

Recruitment is the process of searching for prospective employees and

stimulating them to apply for jobs in the organization. This is made on the base of personal
interview. Only qualified candidates are selected. Final selection is done by the head office.

2. Pay Fixation

It is based on the job analysis, conduct of salary survey, group similar jobs into pay
grades, price each pay grade and wage administration rules.

3. Promotion

Advancement within an organization is ordinarily labeled as promotion. It

refers to the advancement on an employee to a better job. Promotion is a mean of filling up
vacancies which occur in any organization from time to time. Promotion is given on the basis
of:

 Seniority
 Performance
 Additional Qualification

There is an understanding between the workers and the management that

promotions will be made on the basis of ability and seniority.

4. Welfare

Labour welfare means anything done for the comfort and improvement
intellectual or social, of the employees over and above the wages paid which is not necessary
for the industry. KSE gives first priority to the welfare of the employees. Statutory and non-
statutory benefits are provided.

Page | 36
5. Performance Appraisal

Performance appraisal is the systematic, periodic and an impartial rating of an

employee, excellence in matters pertaining to his present job and his potential for a better job.
It is done to ensure the efficiency of workers.

6. Statutory Requirement

 Factory license and boiler license renewed every year.

 Punchayathu tax and building tax, company tax, individual employee tax, etc. are paid.
 Diesel license and environmentally acceptable licenses are renewed every two years.

WELFARE ACTIVITIES

Labor welfare activities of KSE Ltd ensure a peaceful and friendly atmosphere in the
workplace. Labour welfare is a matter of first priority to the management. The firm provides
sanitation, periodical medical checkup and recreational facilities to the employees .Firm
provides both statutory and non-statutory benefit.

Statutory Benefits

 ESI and per ESI Act 1948.

 Gratuity as per payment of gratuity Act 1972.

 Employees Deposit Linked Insurance.

 Contribution to Kerala Labour Welfare Fund.

 P.F;

Page | 37
NON STATUTORY WELFARE FUND
 Employee Welfare Fund

All employees of the firm contribute a fixed monthly amount to the fund. The fund is

administrated by a committee nominated by the management and the employees.

 Terminal Fund
 Death Fund
 Disablement fund
 Medical benefit
 Cash award for children
 Loan for marriage of children
 Loan for house hold items.

 Annual Gift

Firm give annual gift to all employees. Same amount is given to all from the General
Manager to Lowest paid workers.

 Uniform and Footwear

Firm provides two sets of uniform to the workers. Technical staff is also provided two
sets of uniform and pair of shoes.

 Ex-Gratia Payment

One month salary is granted as Exgratia in connection with marriage of employees

and if an employee dies in service.

 Leave and Travel Allowance

It is given every year.

Page | 38
  Conveyance allowance

It is allowed to all permanent employees based on category in which they work.

 Shift Allowance

The second and third shift employees are provided with shift allowance.

 Washing Allowance

It is provided to all employees with uniforms.

 Group Insurance

It is introduced recently in the firm. All employees are provided with group insurance
of LIC.

 Leave Allowance

13 days declared as holiday in a year.

Trade Unions

 KTUC(M)

 INTUC(I)

 BMS

 CITU

Page | 39
PURCHASE DEPARTMENT

Page | 40
 PURCHASE DEPARTMENT

DEPARTMENT STRUCTURE

PURCHASE EXECUTIVE

SENIOR ASSISTANT

OFFICE ASSISTANT

The purchase department consists of purchase committee, which in turn is

comprised of management officials. Purchases are normally done from reliable suppliers.

PURCHASE PROCEDURES

1. Purchase Requisition: It is a document through which the user department requests the
purchase manager to arrange for purchasing the material required. Each department
head prepares the purchase requisition and send it to the purchase manger on receipt of
purchase requisition report. The purchase manager will make necessary steps for
purchasing material that has been mentioned in the purchase requisition.

2. Plans are made by the purchase department about what to purchase, how to purchase,
when to purchase and so on.

3. Purchase manager does not invite quotation for the supply of materials from different
suppliers. Orders are placed through telephonic orders. Normally the orders are made
in bulk quantity. Maximum Economic Ordering Quantity is 250 tons per order.

Page | 41
 4. The purchase committee selects the supplier after evaluation. The purchase manager
then discuss with the supplier about rate, quality, requirements, quantity, delivery time
and packaging. Then both parties agree that they will enter in to purchase contract
according to supply and payment.

5. Making of purchase contract: Six copies of the purchase contract will be prepared and
it is signed by Chief Purchase Manager and Chief General/Finance Manager. The
company will send two copies of purchase contract to the supplier, one copy to the
purchase department, one copy to the finance department, one copy to the stores
department and the last one will keep it in their running file. The supplier will send back
one copy as a token of confirmation. A purchase contract will contain the details such
as, the name of the material, quantity to be supplied, agreed rate, quality specification,
time in which it is to be supplied (delivery date), place of delivery, rate whether
inclusive of tax, packing of material, mode of transportation, option if the material is
not supplied on due date and mode of payment. Generally, 90 per cent of the payment
will be made in the next day. In case the delivery is not made on due date, this 10 per
cent will be adjusted.

6. Receiving and inspection of material: When the material arrives, the drivers have to
report at the gate. The guards will inform it to the purchase department who will give
permission to enter into the company.

Before taking the material to the godown, the total weight of the truck containing
the materials will be calculated. This weight involves the weights of truck, materials, and
packing of material. Later after unloading of material, the weight of the truck, gross weight
(actual weight of material and its packing) and net weight (weight of materials only) will also
be calculated. At the time of unloading the material, actual samples of it will be taken and send
to the Lab another packet will be kept a check sample.

The Material Received Report (MRR) will be prepared and send it to the
purchase department. Full payment for the materials received will be given only after getting
the lab results. The rebate will be deducted if there is any non-fulfillment of the conditions of
the contract. If there is any dispute regarding the quality of the material, the company will send
half of the check samples to the supplier who will send the second half of the check sample to
an independent lab for re-test. Nearest result’s average will be taken for settlement.

Page | 42
IMPORTANT MATERIALS USED FOR THE MANUFACTURE OF CATTLE FEED

The most needed material is de-oiled rice barn, which is purchased in bulk
from north India by rake load and also by lorry from Tamil Nadu and to a concerned extends
from Kerala. Molasses is vital ingredient as it adds taste to the cattle feed.

MAINTENANCE OF STOCK

Materials purchased are required to be delivered at the production unit.

Specifications of the materials required are communicated to the supplier who supplies the
materials as per specifications. The load of materials entering the factory will be registered at
the factory gate. The load is then sending to the store where the store officials check the
materials for visual defects through sample test.

Once the store officials verified the load, it will be unloaded and each material
will be stocked separately in its lot and stored in a pattern. Then raw material samples will send
to the company late for content analysis. If the quality of the materials is found inappropriate,
then adjustments in the price will be made in the final settlement.

Maximum storage capacity of the store is 7500 tons. The company maintains a
minimum stock level of 15 days a minimum of one and a half months.

MATERIAL HANDLING

Once the material requisition report is made, the material is accepted and receipt
is forwarded to the accounts department. The load number is specified in the MRR. Factory
item is stored as per specified act and each issue is recorded. Issue of material is done L.I.F.O
basis. Hence stock can be verified easily whenever required.

Page | 43
FORMS USED

Forms used in the purchase department are;

1. PURCHASE CONTRACT
2. MATERIAL RECEIVED REPORT (MRR)

1. PURCHASE CONTRACT
This contains information regarding the name of the dealer, order
number, date, name of the material, quantity required and rate. It also contains specific
information regarding quality duties, packaging, and mode of delivery, place of
delivery, delivery rate and payment schedule. Chief purchase manager of general
manager will sign this report. Copies of this document are prepared too are send to the
supplier out of which one will be send back by the supplier as confirmation, on copy
is send to finance department, one to godown, one is kept in the running file.

2. MATERIAL RECEIVED REPORT (MRR)

This contains details about the materials received, date, supplier name,
number of bags, voucher number, quality, freight, etc. This form should be signed by
the authorized signatory. Three copies of this form need to produce. One will send to
godown, two copies are retained by the purchase department.

Page | 44
PRODUCTION DEPARTMENT

Page | 45
 PRODUCTION DEPARTMENT

DEPARTMENT STRUCTURE

ENGINEER

SENIOR SHIFT
SUPERVISOR

TECHNICAL STAFF

WORKERS

Production is the process of conversion of inputs into outputs. It involves certain

heavy machineries and some complicated process to convert raw materials into finished
products. Cattle feed production is based on the formula given by the nutritionist. The formula
will change according to the availability and the price of raw materials. The important raw
materials used for this purpose are coconut oil cake, cotton seed cake, maize, rice, wheat bran,
etc. and nutrients.

Page | 46
PRODUCTION FLOW CHART

Raw Material Feeding

Raw Material Weighing

Batch Grinding

Batch Mixing

Molasses Mixing

Palletizing

Bagging

Quality Check

Despatch

Page | 47
1. Raw Material feeding: Various raw materials to be taken for production are listed in
the raw material feeding report on a day to day basis and fed to the conveyors. The
materials fed are taken to the top floor through the coveyor.

2. Raw Material Weighing: The raw material is weighted in the weigh hopper as per the
formulate given by the Chief Nutritionist. For each recipe, separate formulae are
entered in the computer.

3. Batch Grinding: The batch which is weighed in the weigh hopper is taken for grinding
in hammer mills, where required sleeves are used to ensure adequate particle size for
the ground material.

4. Batch Mixing: The material ground in the hammer mill is taken to the ribbon type
batch mixer for predetermined time to ensure homogeneous mixing. The minor
ingredients are directly added to the mixer.

5. Molasses Mixing: The required molasses added to the batch and mixed in molasses
mixer.

6. Palletizing: The food that is mixed with the molasses is passed through the pellet mill
feeder conditioner where required quantity of steam is added. It is then passed through
the pellet mill where pellet are produced. The hot pellets are cooled in cooler and then
bagged.

7. Bagging: After completion of production, bagging is done and appropriate

identification is done with respect to the date and shift of production.

Page | 48
OPERATION

The whole operation is automatic which is programmed to the computer placed at

the plant operator’s room. After feeding of raw materials to the hopper, the computer
automatically takes the amount of raw material needed for the batch as per the chief nutritionist
formulae. The bagging is also done automatically. The plant operator is responsible for the
change in the percentage of raw material in the batch. The raw materials are fed to hopper
which itself is a weighing machine. It allows only the appropriate amount of raw material to
enter the production.

PRODUCTION PLANT

In KSE Vedagiri unit, production take place in the cattle feed plant.

CATTLE FEED PLANT

In this plant the company uses different types of cakes according to their availability
apart from other materials of the company such as coconut cake, sunflower cake, mustard cake,
soya been, wheat, calcium, vitamins, cotton seed, phosphate, tapioca, maize, jowar and other
vitamins. Except from the coconut cake, all the other materials are purchased from other states.
It can produce 200 tons per day.

MMCP TECHNOLOGY

It involves mixing, milling, cooking and pelleting.

MILLING

This is being used for ensuring that all the granules are grinded, screened three mm
sieve. The materials feed in to the grinder and powdered as it passes. Through the screen
provided at the bottom side of grinding chamber. Two hammer mills are used.

Page | 49
MIXING

The raw material will mixed thoroughly by using a horizontal mixer.

COOKING

The steam for cooking is produced using a boiler. The mixer carries out a strong
mixing while the mash is moved forward and added with dry saturated steam. The cooking is
carried out at a temperature of 80 degree Celsius using a high pressure saturated steam.

PELLETING

The pellet mill die by rotating drags the mixture of mash and steam towards the roller,
which press it and consequently compel it to pass through the hole of the die. It increases the
density of the mixture, which together with heat generated by the saturated steam facilities the
extraction of the pellet.

Page | 50
MARKETING DEPARTMENT

Page | 51
MARKETING DEPARTMENT
DEPARTMENT STRUCTURE

CHIEF MARKETING MANAGER

SA;ES EXECUTIVE

OFFOCE ASSISTANT

CLERK

FUNCTIONS

Marketing Department of the company concentrates on building long term relationship

with the customers, dealers, distributors and suppliers. The company also undertakes sales
promotion works. Marketing department mainly concentrate on consumer promotion and
dealers promotion.

In this company the departments by Marketing Manager and under him there are 2
Assistant Manager. One for sales Dispatch other for Customer service and Sales promotion.
The company sells its products only through the dealers, No direct sales are allowed. The
company has around 500 dealers. It delivers goods at their shop unloading changes; rent etc
will not bear by the company.

Page | 52
ADVERTISEMENT AND SALES PROMOTION

The company does not give much importance to advertisement but it concentrate on
sales promotion to a greater extends. However the advertising and sales promotion expenditure
for the year 2008-2009 amounts to Rs 7, 92,913: catalogues and Descriptive leaflets are also
provided to dealers. The main users of the product are farmers. So the advertisement is given
in local channels only. The company also gives dealers board to dealers as an advertisement
for their product.

OTHER ADVERTISEMENT ARE USED

Radio ads - Wall paintings – Hoarding – Flexes - Tin boards to dealer

Dangles – Pamphlets - Flex banner - Cinema slides -Yearly calendar

SALES PROCEDURE

1. Dealers can use own or rented vehicle

2. Vehicle is weighted before going to godown

3. After weighting it is loaded with required quantity

4. Vehicle is then weighed with load

5. Weight of products is verified

6. Bill clearance done

TRAINING
Training for KS sales persons was conducted from 2001. According to the training
session the main objectives of sales management were

a) Sales volume

Page | 53
 b) Contribution to growth

c) Continuing growth

CATTLE SHOWS

Company sponsors cattle shows conducted by milk society, dairy departments etc.
Cattle shows neither help the company to reach many prospects nor reached their sales force.

FEEDBACK FROM CUSTOMERS

Marketing department encourage feedback from the customers. Labels with address for
enquiry are put each packet for feedbacks.

OBTAINING SALES ORDER

Dealers are selected by proper methods. Dealers can give order either directly or
through telephone. Date of delivery is given in advance.

PRICING

The pricing of KSE is flexible. Pricing of the product varies according to the cost of
raw materials. During 1998 the company was forced to increase the price of their product. But
when the price of raw materials lowered, the company decided share it with the customer. As
a result there was a reduction of Rs 13-18 per pack. According to Kerala General Sales tax a
15% additional sales tax was imposed. So price were renewed from 23rd August 2006.

DEALERS PROMOTION
It carried out by providing dealers with

a) Banners

b) Purchase- pointers

c) Dealers commission is granted at the rate of 10%

Page | 54
MARKETING SEGMENTATION

Since the final consumer of cattle feed is cattle, market segmentation is done, on the
basis of milk production of cattle is segmented as
1. Dry animals with no milk

2. Animal yielding milk 5 liters

3. Animal yielding milk between 5-10 litters

4. Animal yielding milk more than 10 litters

DEALERSHIP CHART

Company

Authorized dealers

Sub dealers Wholesalers

Retailers
Retailers Wholesalers

Customers
Customers Retailers

Customers

Page | 55
FINANCE DEPARTMENT

Page | 56
FINANCE DEPARTMENT

DEPARTMENT STRUCTURE

SECRETARY/CHIEF
FINANCE MANAGER

ASSISTANT FINANCE
MANAGER

OFFICE ASSISTANTS

CLERKS

The main function of Finance department is to have overall control over

both inflow and outflow of the financial resources. The finance department is divided into
different sectors.

The authorized share capital of the company is Rs 10crore and issues and
subscribed capital is Rs3.2crore. The par value of 1 equity share capital is Rs 10. The company
issued 6000 bonds 5% redeemable cumulative per share of Rs 100 each. The redeemable of
this allotment. The company went in for public issue of shares in 1994. Company shares listed
at stock exchange at Cochin, Chennai, and Mumbai. The present market value of the company
share is Rs 200. The reserves and surplus us on 31st march2012 is Rs . The company paid a
dividend of Rs for the year

2011. Financial accepts fixed deposits from the public at the rate of 15%PA. The company
keeps books as purchase day book, sales day book, cash and bank book.

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MAJOR APPLICATIONS
Computers are used for accounting and technical aspects of account such as;

 Inventory control

 Production Planning and Control

 Purchase Accounting

 Budgetary control and standard costing

 Machine capacity utilization

 Quality control

 Input/output Analysis

 Market research

 Management Information System

SOURCE OF FINANCE
Long term Finance, Medium term Finance and short term Finance is
considered as source of finance. Source of long term finance are

 Shares

 Debentures

 Internal finance

 Public deposits

 Industrial financial institution

 Industrial banks

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SOURCES OF MEDIUM TERM FINANCE

 Redeemable preference shares

 Debentures

 Bank loans

 Hire purchase and installment system

 Public deposits

 Mortgage loans internal finance

SOURCES OF SHORT TERM FUNDS

 Bank OD

 Trade creditor

 Money lender

 Customers advance

 Loan from MD and Directors

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CAPITAL STRUCTURE

It consists of both owned capital and borrowed capital. Owned capital

consist of funds brought in by owners, borrowed capital consist of shares debentures and loans.

FINANCIAL POLICIES

Accounts in KSE Ltd are prepared under historical cost convention on

accrual basis unless otherwise specially stated in notes to account.

1. Fixed Asset

Asset put to use have been stated at cost less depreciation. Asset not put to
use have been stated at cost

2. Depreciation:

Depreciation on fixed assets have been provided on written down value

method at the rate prescribed in the company Act 1956,

3. Investments

Investments as at the aloes of the year are valued at loses cost as net
realizable Value.

4. Goods in transit at cost

5. Retirement benefit:
A. Contribution to Provident fund and employees welfare funds is
charged to Profit and Loss Account
B. Gratuity

The accruing liability towards the gratuity of employees in covered by the group
gratuity assures in scheme is charged to Profit and Loss account. Gratuity in respect of whole

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time directors is provided for or gross whole time directors is provided for on gross basis for
on charged to P&L account.

6 Sales:

Sales are stated gross of excise duty as well as net of excise duty and are stated
exclusive of VAT/ sale tax.

7 Claims:

Claims are accounted for as fund where finally determined/ settled.

8 Grants:

Grant/ subsidies received specially related to capital assets, are credited to the carrying
cost of the respective assets other. Subsidies received are credited to capital reserve.

9 Inventories:

Inventories as at cost of the year are valued at lower cost or net realizable value.
Cost includes cost of purchase, conversion and other cost, as the case may be, incurred in brings
the Inventories to their location/ condition, determine on the following methods.

a) Raw materials : FIFO

b) Packing materials : FIFO

c) Stores and spare

and consumables cost : At weighted average

BORROWING COST:

Borrowing cost that are attributed to the acquisition or construction or

production qualifying assets are capitalized as part of the cost of such assets. A qualifying asset
is one of that necessarily takes substantial period of the fine to get ready intended use. All other
borrowing costs are charged to revenue.

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TAX ON INCOME:

Current tax is determined as the amount of tax payable in respect of

taxable income for the year. Deferred tax is the required on timing difference, being difference
between taxable income and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods where there is un absorbed depreciation or carry
forward losses deferred tax assets are recognized only if there virtual certainty of realization of
such assets. Other deferred tax assets are recognized only to the extent to there is reasonable
certainty or realization in future.

SEGMENT REPORTING:

The company’s primary segments (business segments) have identified as the

a) Animal Feed Division

b) Oil Lake Processing division
c) Diary Division Compressing Milk and Milk Products Industry Ice Cream.

There no reportable geographical segments. Segments revenue, segment

results, segment assets and segment liability include the respective amounts identifiable to each
of the segment as also amounts allocated on a reasonable allocated to any of the business
segment, are shown as unallocated expenditure. Assets and liabilities that cannot be allocated
between the segments are shown as part of unallocated assets and liabilities respectively. Later
segment transfer of processed material is accounted considering the estimated reliable value of
such goods.

FOREIGN EXCHANGE TRANSACTIONS:

Monetary assets and liabilities relating to transactions involving foreign

currently remain unsettled as the end of the year end rate. Gains or loss due to such transactions
of foreign exchange transactions (other than for fixed assets) are recognized in the P&L
accounts of Gains or loss due to such transactions of foreign exchange transactions relating to
fixed assets, if any, are adjusted the carrying cost of such assets.

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QUALITY CONTROL DEPARTMENT

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QUALITY CONTROL DEPARTMENT

The success of a company depends upon the quality of its product. Quality
is the totality. Quality is the totality of features and characteristics of a product and service that
bear on its ability to satisfy stated or implied needs. Total quality is the key to value creation
and customer satisfaction.

The quality control department has to play an important role in the success
of a company through innovating quality product. It aims at total quality control. It begins right
from the purchase of raw materials to after sales quality check. Uncompromising quality is the
main feature of KSE. It is with which the company maintains its reputation. The quality control
department ensures the quality of cattle feeds through testing the products at different stages.
Statistical sampling techniques are applied for quality control tests. The quality control tests
include the raw materials inspection, in process inspection, finished products inspection and
finally after sales quality control.

DEPARTMENT STRUCTURE

CHIEF NUTRITIONIST

SENIOR CHEMIST

JUNIOR CHEMIST

ATTENDERS

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STEPS IN QUALITY CONTROL

In order to ensure total quality, tests are conducted right from the stage of raw material
acquisition to after sales. Payment of raw material is done on the basis of the test results. There
are four stages in the quality control:

1. Raw material quality verification

2. Quality verification during grinding and mixing

3. Product quality verification

4. after sales quality control.

1. RAW MATERIAL QUALITY VERIFICATION

Protein fat are the required context. The main impurities are moisture and silica.
The fat content in the raw material is verified by a test known as “Crude fat test” apparatus
used is known as soxtlete apparatus. There are three such apparatus in the lab. Protein content
is verified with the help of an apparatus termed as fumes chamber. As protein is a Nitrogen
compound, protein content can be verified using this apparatus to measure nitrogen content.
Only one apparatus is there in the lab for this purpose. Moisture content of raw materials should
not be above a prescribed percentage (usually 10%) the best tube for moisture is conducted to
ensure that the raw materials are properly dried. In later concept in 5gms is tested by using an
apparatus “Hot Air Owen”. Silica content is verified using the test named as “Acid Insoluble
Test” apparatus used is “muffle furnace”.

Other Apparatus Used

 Distilled water unit

 Vacuum pump

 Hot plate

 Electric weight machine

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Quality Verification during Grinding and Mixing
In second stage there are two quality checks:

a) Check during grinding.

Check during grinding is done at the grinding stage to ensure the proper size
recommended.

b) Check during mixing.

Check during mixing is conducted to find out whether the mixture is properly
balanced. Also the weight is checked at this stage.

1. Product Quality
It involves

a) Calcium content verification.

b) Chlorine content verification

c) Phosphorous content verification

Volumetric test is used. Product quality verification is done at 3 shifts by taking samples and
checking it at the lab. Then it is pat before the medical officer for approval.

2.AFTER SALES QUALITY CONTROL

Customers are given proper guidance and instructions. They are advised not to
store the feed in moist place, also labels put in each bag to ensure proper feedback.

Training:

Quality control personnel regularly undergo in – service training at courses conducted at

control food Training and Research Institute (CFTRI), RRL, NDRI & other national research
organizations including various veterinary colleges in the southern states.

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FUTURE PLANS AND PROGRAMS

KSE, having an annual turnover of Rs.250 crores, which s the largest

manufacturer of cattle feed. It provides employment to around 1000 members directly and
another 5000 indirectly. Its share is being listed in three stock exchanges in Cochin, Chennai
and Mumbai. The company commenced its production in the year 1972.

It is marketing annually about 1.80 lakhs per tons of superior quality

cattle feed. KSE has successfully launched its Vesta Brand Ice Cream which has been well
accepted in the market for its matching international quality standards. KSE plans to add more
ice cream production units across Kerala in the coming years to serve all pockets.

KSE is in the oil extraction industry in the past 49 years. It is having

two solvent plant with processing capacity of 100 tons per day. The company has also a
chemical oil refining plant of 20 tons per day. The company has secured the National
Productivity Award for the year 20018-2019 for being first in terms of production efficiency
in the animal feed sector. This is the sixth time in a row that the company is being selected for
this most coveted award.

It is pertinent it note that in the Kerala industrial scenario, where many

companies are choosing down, either due to labour unrest or due to other economic reasons,
KSE continue to commence new venture each year and runs them successfully. The company
is having six units at different locations. The relation with the labour unions is very warm and
cordial.

KSE, with a capital base of Rs.36crores embarks on an expansion to

double its solvent extraction capacity and add a most modern ecofriendly vegetable refining
plant. The company has already identified six Acres of land in the KINFRA small industries
park, koratty fort his expansion.

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SWOT ANALYSIS

 STRENGTH

Vast experience of 36 years in the cattle feed and solvent extraction industry. KSE has survived
many ups and downs in the industry

 KSE is the Market leader in the cattle feed segment

 KSE has won many awards and recognitions because of its outstanding quality of
products which give them an edge when comparing to others companies.
 KSE has a Huge network of product dealers because of this the company need not spent
muc n the marketing.

 WEAKNESS

Labour unrest caused a rift between the workers and the management

 KSE is finding it difficult to procure coconut oil cake domestically and has rely on
imports. Further the depreciation of the Indian Rupee against US Dollar is pushing up
KSE's import costs
 Promotional activities are limited
 High price row materials
 High cost of production

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  OPPORTUNITIES

 With the VAT removed on sale of cattle feed, de-oiled cakes and coconut oil, KSE's
products are competitively priced
 KSE is in process of establishing ice-cream production units near identified potential
markets. This will expand its sales

 THREAT

Cutthroat competition from the unorganised sector who have comparitively less labour
overhead costs

 Probable entry of MNCs in the cattle feed sector

 Rise in crude oil prices causing an increase in input costs

 Stagnant growth in cattle population might slower growth prospects of the cattle feed
industry

 Indirect control by govt. over the price of milk

 Crop rotation by farmers, since oil seeds and grains are raw materials for KSE

 Import of cheaper oils for industrial consumption leading to a fall in demand for
solvent extracted coconut oil

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 CHAPTER 4

FINDINGS, SUGGESTIONS & CONCLUSION

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FINDINGS

We have found many things in KSE they are as follows:

 The company has huge market demand for its product. Because company has created
a goodwill among customer over years.
 Company has faced many they problems over the years and they have been
successfully running. Because of its good administration department.
 Company has always tried to maintain a good employer-employee relation by
providing good working condition.
 While other companies have put lots of money in marketing their products KSE has
limited marketing. But they have a huge demand for their products
 Even though they are running 365 days but they still can’t satisfy the demands of the
customers.
 In olden days their demand has been highly seasonal but now it have change.
 They are manufacturing milk and ice cream but due to unavailable of raw material they
have been limited their market of those products.
 Their products price is little higher when compare to competitors but they still have
demand because of its supreme quality of those products.

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SUGGESTIONS

 Gather more raw materials from domestic territory. It reduce the

cost of raw material and transportation.
 Introduce direct marketing with customer so that it helps customers to buy goods at low
cost
 KSE can think of establishing human relation development for dealing with all aspects
related to its employees

 Focus more on the value addition to the products and services will help the company to
maintain customer interest.

 Improvements in the financial performance also be an important focus of the company.

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 CONCLUSION

KSE ltd Company has been running successfully over years. They have seen many up
and down in market still they have become successfully. The reason behind it is the management and
the workers jointly work together for the good will and for the profit of the company at times it needed
most. Most of all they have given only good quality products to the costumers according to the needs
of the customers. Perhaps this is the real reason for the company’s success.

The study also help to understand the different environment of the company
will how affect in its various matters. Different analysis tools are used in the study give the
understanding of its usage and importance in analysis. And at most the study beneficial as I
helped to gain awareness and confidence.

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 BIBLIOGRAPHY

 Kotler Philip, ‘Marketing Management’ Eleventh edition, prentice Hall of India Pvt
Ltd, 2005.
 Annual report of KSE Ltd., Retrieved from
https://www.goodreturns.in/company/kse/annual-results.html
 KSE Ltd history, retrieved from www.kselimited.com
 http://www.fao.org/DOCREP/Article/AGRIPA/X9500E01.html
 Solvent extraction industry, Retrieved from
http://stason.org/TULARC/science-engineering/chemistry/24-1-What-is-Solvent-
Extraction.html
 Vesta Ice Cream, vestaicecream.kseltd.com

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