CHAPTER-1 INTRODUCTION

1. INTRODUCTION
An organization is a planned co-ordination of a number of people and their activities for the achievement of some specific goals through division of labour, and hierarchy of authority. An organization study involves the study of the structure and functioning of its departments. Organizing or organization is one of the important functions of Management. Almost all the organizations are different but they have certain common features. All are collection of people, linked together by formal and informal relationships. They have hierarchical orders that are engaged in co-operative activities and they all have identical boundaries. So the study of people in organization is important for future managers. Structure of an organisation is very important for its functioning and growth. It provides the basic frame work for its progress and expansion. For future managers it is imperative to study the organisational structure and functioning of successful organisations so that they as future managers may guide organisations towards success and profitable functioning.

1.1 OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE

To Study the Organizational Structure and its hierarchy. To Study the Various departments of the Organization. SECONDARY OBJECTIVE To Study how the department are functioning. To Study how the Management tries to control and co-ordinate various departments to achieve organizational goal. 2

1.2

LIMITATIONS OF THE STUDY

confidentiality was provided actually asked

Hesitation of the employees to respond to the questions Reluctance of the workers to answer vital questions, even though

Few employees were unable to understand the meaning of what was

due to lack of higher education

1.3 METHODOLOGY
1.3.1 PRIMARY SOURCE Primary data are collected through discussions and interviews with management personnels of various departments

1.3.2 SECONDARY SOURCE Secondary data for the study was collected from various books, annual reports, website etc. company

CHAPTER -2 INDUSTRY PROFILE

INDUSTRY PROFILE
Spice, aromatic vegetable product used as a flavoring or condiment, normally refers to the derivatives from certain herbs like Seeds, Leaves, Bark, roots etc. They are used mainly for enhancing taste of the food. The name spice is derived from the word species, which was applied to groups of exotic foodstuffs in the middle Ages. Spice term was formerly applied also to pungent or aromatic foods, to ingredients of incense or perfume and to embalming agents. Modern usage tends to limit the term to flavorings used in food or drinks, although many spices have additional commercial uses, e.g., as ingredients of medicines, perfumes, incense, and soaps The earliest literary record in India on spices is the Rig Veda (around 6000 BC).The story of Indian Spices dates back to 7000 years into the past. In the modern world, major trade is related to eating and spices provide the major thrust - traditionally a country of agriculture, India leads the trade. Spices can improve the palatability and the appeal of dull diets or spoiled food. Piquant flavors stimulate salivation and promote digestion. Pungent spices can cause sweating, which may even cause a cooling sensation in tropical climates; on the other hand they can add a sense of inner warmth when present in cooked foods used in cold climates. In India, traditionally, spices formed a part of common man's daily food.

WORLD SCENARIO

Within the past one decade the international trade in spices has grown by leaps and bounds. An estimated 500,000 tones of spices and herbs valued at 1500 million US dollars are now imported globally every year. An impressive 46% of this supply comes from India. India's exports of spice extracts have shown spectacular growth attaining over 50 percent of the global market within a short span. The Indian export of spices has crossed the 450 million US dollar mark during 1999-2000 and has reached 468 million US dollar. This remarkable achievement is born of a sea change in the industry scenario. From traditional commodity exports, Indian Spices have evolved into a state-of-the-art industry.

INDIAN SCENARIO
Indian Spices paid important role in the history of various lands, discovered or destroyed, kingdoms built or brought down, wars won or lost, treaties signed or flouted, flavors sought or offered. Spices have also played a political role in the history. The use of spices from the East became a status symbol by the year 1200 and the European preoccupation with the world of spice was born. The use of spice in food meant money and power, and the desire to acquire these precious status symbols led to world exploration pan-global communication, trade, alliances and wars. Indian Spices also fitted into philosophic concepts of improving health, since it was understood that they could affect the four humors (blood, phlegm, yellow bile and black bile) and influence the corresponding moods (sanguine, phlegmatic, choleric and 6

melancholic). Thus, ginger would be used to heat the stomach and improve digestion; clove was believed to comfort the sinus; mace would prevent colic and bloody fluxes or diarrhea; nutmeg would benefit the spleen and relieve any bad cold.

THE INDIAN SHARE.

At present, India produces around 2.5 million tones of different spices valued at approximately 3 billion US $, and holds the premier position in the world. Because of the varying climates suitable for the spice cultivation almost all spices are grown in this country. In almost all of the 25 states and seven union territories of India, at least one spice is grown in abundance. No country in the world produces as many kinds of spices as India. In recent years, export of Indian Spices has been taking giant leaps. The Indian export of spices has crossed the 450 million US dollar mark during 1999-2000 and has reached 468 million US dollar. The Spices Board India is the apex body for the export promotion of Indian Spices. The Board has been with the Indian Spice industry every step of the way. The Board plays a far reaching and influential role as a developmental, regulatory and promotional agency for Indian Spice.

STATE SCENARIO.
Kerala is a land of spices considering the large variety of spices grown in the state. Today there are as many as 26 Indian spices that are greatly in demand in different countries. Little wonder then that India is the single largest source of spices in the world. The most popular among the spices are pepper, cardamom, turmeric, chillies and ginger. Pepper, known as the 'King of Spices' is perhaps the world's oldest known spice and is cultivated in over 158,000 hectares in Kerala, which accounts for 96 % of the total production in the country. There are a lot of opportunities for investors in the spice sector and Spices Board, the caretaker of the sector in India is based in the state. .

CHAPTER 3 COMPANY PROFILE

2.1MANAGEMENT
The group is managed by teamed professional and family members. From the very beginning Mr. M.E. Meeran has been the chairman and manager of the company. In addition Mr. Navas Meeran, Mr. S.M. Muhammed, Mr. M.E. Muhammed, Mr. Firoz Meeran holds the chain of Directors and Mrs. Nabeesa Meeran playing a key role behind the success of the Eastern Group; she has been the principal of the Eastern Public School Adimali.

2.2 VISION

To be the preferred provider of products and services of outstanding value, satisfying the basic needs of the mass market through the adoption of globally acceptable standards and continuous innovation.

To be the preferred employer in the industries we are in, by providing a challenging work environment and adding value to our people through exposure and shared learning.

To be the preferred business partner of all our stake holders, by providing them with exemplary benefits and shared growth There are various departments in Eastern are: 1. Finance and Accounting, 2. Human resource 3. Production 4. Maintenance and FSTL 10

5. Marketing 6. Quality and control 7. Purchase 8. Export 9. IT 10. Production and Planning

2.3 PROFILE OF THE COMPANY The Eastern Group of Companies founded by Mr. M.E. MEERAN, started with a dream, making good products available to the common man at the right prices. The Company was established in 1983, is a pioneer in the state to produce packaged curry powders, Masala powders, spices and coffee powder. The story of Eastern curry powders began in a small mountain township called Adimali, where the best spices from all over India are sourced and powered under most stringent conditions and packed in consumer packs. The purity and freshness of Eastern curry powder made Eastern a house hold name in India and abroad. The Company export it products to various countries like Middle East, U.K, U.S.A, Australia & Germany. Today, Eastern has grown into favourite in Indian homes across the world. Eastern Condiments Pvt. Ltd. is a well established name as Keralas largest manufacturer of condiments and one of the leading brand among the south India. An 11

expertise and experience collated over a period of 30 years has borne fruit. Nation wide branches, two well equipped factories situated in the Eastern high range of South India and over two million satisfied household all over stand as solid evidence of its exceptional repute. A name that will hold its own for years to come as the worthwhile manufacturers, distributors and exporters of the quality natural and blended spices powders and spices.

BRIEF HISTORY OF THE COMPANY

Mr. MEERAN the chairman of Eastern Group started his career as a businessman with a whole sale provision store at Adimali in 1969, named Eastern Trading Company. He could establish a good sales network in Idukki district and the business man in him felt the niche for spices powders, at a time household were sparingly using such powders in their daily cooking. As years passed he started an agency business in 1975 named Eastern Agencies at Adimali where its whole sale shop was located. He had taken products from in and out of the state and worked as an agency for trading. The unit shown scope for better prospectus and the present popular Eastern Condiments was established in 1983.Within a few years it could become the market leader, though a number of curry powder industries have sprouted up, all over Kerala. From the very beginning Mr. M.E. MEERAN has been the chairman and the manager of the Eastern Condiments Pvt. Ltd. In addition to that Mrs. Nabeesa Meeran, Mr. Navas Meeran and Mr. S.M. Muhammad hold the chairs of directors. For administration there is corporate office at Ernakulam. As head of administration there is chairman and below that vice chairman. The company started functioning only with 25 employees. Now it is grown 12

to more than 1700 employees, they are working with one heart and soul for the achievement of the goals of the organization.

THE EASTERN GROUP OF COMPANIES Leadership through Excellence

Eastern curry powders come from the Eastern group of companies, a group with diverse interests, and a world leader in Indian spices. Eastern has ventured into various areas like precurred tread, mattresses, garments, packaged foods, mineral water, retreads, public school and has many more projects in its vision. EASTERN MATTRESSES PVT LTD.

Sunidra Rubberized Coir Mattress

Eastern Mattresses Pvt. Ltd. was set up in 1999 to manufacturing rubberized coir mattresses with a state of the art factory in Thodupuzha the company manufacturer. Sunidra, the popular brand of rubberized coir mattress manufactured by Eastern Mattress Pvt. Ltd. is slowly growing to be a market leader in the country. Sunidra has own the prestigious certification of approval of Government of India.

EASTERN AQUA MINERALS

Eastern Aqua Mineral, a recently launched company was set up in the year 2000, entered the area of packaged drinking water with a state of the art plant located in Kalady, Kerala. Eastern packaged drinking water is all set to quench the thirst of millions of the people with

13

mineral water of highest purity standards, high quality with Control 12 8B testing facilities and export supervision ensures a quality product of international standards.

EASTERN NEWTON PUBLIC SCHOOL

The Eastern group entered the area of education with the setting up of the Eastern NEWTONS Public School at Adimali, Idukki dist; Kerala. Eastern Public School ensures high quality education from kinder garden to primary levels with C.B.S.E syllabus providing all the residential facilities and highly trained faculties to the thousands of families residing the hills of Idukki district Kerala. Mrs. Nabeesa Meeran is the principal of this esteemed institution.

EASTERN TREADS LTD.

Eastern Treads Ltd. is a public company engaged in the manufacturing of quality precurred tread, cushion, bonding gum and black vulcanizing cement. It branches all over India and has been showing consistent high performance and growth. The factory has annual turn over 12 crores and it is located in Onnukal about 60 km from Kochi has a state of the art infrastructural transport and communication facilities.

EASTERN RETREADS PVT.LTD.

Eastern Retreads Pvt. Ltd. was set up in 1993 is encaged in retreading of tyres. The factory is located at Vazhakulam; Thodupuzha in Kerala is equipped with hot and cold retreading process.

EASTERN CLOTHING COMPANY King Richard, a brand of mens wear from the Eastern clothing company was set up in
1999 is yet another foray of Eastern into the world of mens wear. It includes all the new trends of colour combinations, designs, fashions of shirts and trousers with a view to meet

14

the aspiration of the working class with a quality ready wear at responsible price in international styles. Excellent quality and right pricing has become the winning formula of the Eastern Group. Today Eastern is poised to take on new markets, the world over with products that meet the highest quality standards.

2.4 LEGAL FRAMEWORK OF THE ORGANISATION

Eastern Condiments Pvt Ltd is incorporated under THE COMPANIES ACT 1956 on 26th Feb 1991 having its registered office at P. B no:15 Eastern Valley Adimaly. The Authorized share capital of the company is Rs 35, 00,000/- divided into 3500 shares of Rs 1000 each.

2.5 PRODUCT PROFILE

India is considered to be the home of spices. Spices play a very important role in our national economy. The purity and freshness of Indian spices and spice powders has grown into a favorite in India and all over the world. Spices are used in many countries as flavouring agents. They improve the flavour and acceptability of cooked food and make them more delicious.Eastern Condiments Pvt. Ltd. has different varieties of spices, curry powders and pickles on its product mix. The purity and freshness of Eastern curry powders made Eastern a house hold name and to it grew to be a leading brand in Kerala. Eastern curry powders popularly known as Strong Masala is processed using the unique flavour-lock technique. The best quality spices are powdered under stringent temperature control, using micropulverisers ensuring that the precious volatile oils that give the flavour to the spice are preserved. Eastern curry powders are so pure and fresh so that use just half as much as any other for excellent taste. Eastern curry powders is a household name in Indian and export to various countries like Middle East, U.K, U.S.A, Australia and Germany. Eastern has grown into a favourite in 15

Indian home across the world. Excellent quality and right pricing has become the winning formulae of the Eastern Group. Eastern curry powder is fast growing into an all India brand with its entry into new markets and the introduction of market specific new variants. PRODUCTS OF MANUFACTURING Eastern Condiments Pvt. Ltd. has different varieties of spices, curry powders, blended curry powders-Masala, instant pickle powders and pickles. The companys pickle market is mainly concentrated in exporting. The different categories of products are as follows,

SPICES POWDERS

TUMERIC POWDER CHILLI POWDER CORIANDER POWDER BLACK PEPPER POWDER

BLENDED CURRY POWDERS Blended curry powder includes various types of Masala and pickle powder. They are as follows,

RASAM POWDER SAMBAR POWDER PICKLE POWDER PHAR BHAJI POWDER FISH MASALA CHICKEN MASALA MEAT MASALA TANDOORI MASALA CHANA MASALA GHARAM MASALA 16

PICKLES
o o o o o

MANGO PICKLE TENDER MANGO PICLKE LEMON PICKLE GINGER PICKLE GARLIC PICKLE

OTHER PRODUCTS

COFFEE POWDER BANANA CHIPS TAPIOCA CHIPS RICE FLAKES RICE POWDER

2.6 AWARDS
Eastern curry powder is fast growing into all-India markets and the introduction of market specific new variants. The success of Eastern is a story of hard work and commitment of quality besides bringing a good product at the right prices to the consumers. Eastern curry powder ventured into new markets in India and the Middle East countries. Today eastern curry powder is the largest exporter of spice powders in consumer pack from India that export mainly to Middle East, U.K., U.S.A, Australia and Germany. Presently the company is exporting 60% of its products. AWARDS OF EXCELLENCE The company has got ISO 22000 and The Hazards Analysis Critical Control (HACCP) certification from B. V, a Dutch certified body. Eastern was the first company in India to get ISO 22000 in this sector . Over and above many awards for excellence Eastern won the prestigious award for outstanding export performance by spices board, India for eight consecutive years 1997-98 to 2004-05. Eastern has won so many prestigious awards in the recent years too. 17

2.7 FUTURE EXPANTIONS

In view of the huge potential in the industry they have the following ambitious future plans:To achieve 1000 crore turnover by 2010 To set up a new factory at Guntur, Andra Pradesh with high production facilities. Guntur is major production centre of chillies, the main raw material for Eastern. The company has planned to set up one more wind mill preferably in Andra Pradesh as a source of cheap power for the proposed unit at Guntur. Companys vision is to make EASTERN a National Brand as a set up towards this the company plans to strengthen marketing network in Maharasthra, Andhra Pradesh, Gujarat and New Delhi.

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3.1 ORGANISATION CHART

CHAIRMAN

VICE CHAIRMAN GROUP DIRECTOR M&T

GROUP DIRECTOR O&P

GROUP DIRECTOR F&A SR.MANAGER _ACCTS

DIRECTOR MANUFACTURING MANAGER SALES MANAGER EXPORTS IN CHARGE OKKAL OFFICERS HR.EXECU TIVE HR.STAFF DY.MGR CHENNAI SALES DEPOT ASST:MANAGER

DGM:FINANCE

MANAGER TAXATION OFFICERS &STAFF ASST: MANAGER

MANAGER CASH

PRO

ASST:MGR PROD.PLO

SE,SALES STAFF

D Y : M G R A S S T : M G R

DY.MGR BANGLO RE SALES

PDN:SUPER VISOR

MANAGER ADMINISTRATION ASST.ENGR MAINTANANCE MAINTANCE OFFICER

OFFICE STAFF&SALES TEAM OFFICE STAFF&SALES TEAM

PICK LE PDN &PA CKIN G

CURRY POWDER PDN&PA CKING

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International Organization For standardization

ISO was set up in the year 1987. It is a worldwide federation of standards bodies from 138 countries. Bureau of Indian standards (BIS) represents India in ISO MISSION Its mission is to promote the development of standardization and related activities in the world with a view to facilitate international exchange of goods and services and to develop co-operation in intellectual, scientific technological and economic activities ISO 9000 series ISO 9000 - 2000 ISO 9001 - 2000 ISO 9004 2000 First developed and published on 1987, revised in 1994 and 2000 It consists of 3 basic documents (9000,9001,9004) It is a means to demonstrate quality assurance of product or services Most popular among over 13000 standards issued by ISO Indian version is IS/ISO 9000 series standards ISO versions ISO-14000 ISO-9000 ISO 22000 for eco friendly products and companies for the overall quality products for food safety products

Eastern is the first company in india and second company in asia got ISO 22000 certification. Eastern got ISO certification in the year 2004-2005 20

DOCUMENTATION REQUIRMENTS To approve documents for adequacy prior to issue To review and update as necessary and reapprove documents Change and correct revision status To ensure legibility and ready identifiably of documents To identify and control distribution of documents of external origin

The organization shall establish, documents, Implement and maintain an effective food safety management system and update it when necessary in accordance with the requirements of this international standards. The organization shall ensure the following basic requirements for the implementation of ISO 22000 The food safety hazards that may be reasonable expected to occur in relation to product within the scope of the system are identified evaluated and controlled in such a manner that the product of the organization do not directly or indirectly harm the consumers Communicate appropriate information through the food chain regarding the safety issues related to its products Communicate information concerning development, implementation and updating of food safety Evaluate periodically and update

The ISO will gave only the basic documents of the pre requisite programs and the company has to work out in its own way for implementing ISO

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DUTIES AND RESPONSIBILITIES OF DEPARTMENTS IN ISO 22000 The certification upholds the steps taken by the company to install the latest infrastructure in every stage of manufacturing as well as logistics. The certificate for food safety systems is issued by the Food Cert BV Netherlands

PURCHASE DEPARTMENT For ISO 22000 the raw materials used for production should be from hazardous substances, chemicals. The raw materials must be free from poisonous substances. For ensuring the quality raw materials the purchase department makes purchase only from those known dealers and farmers. For the food products the raw materials should not be grown in areas where the presence of potentially harmful substances and chemicals, the usage of fertilizers must be controlled The purchase process is as follows:1. Samples of the same item are first collected from the supplier of various places and then the samples are analyzed by the laboratory 2. The samples are analysed and report send to the head office. The suggestion about acceptance of refusal is discussed with the purchase manager 3. The purchase manger made a consultation with the production manager then decides the quality and place of orders. Then the company can send the purchase order form 4. After the raw-materials received the quality must be checked by the quality control laboratory. If there are any discrepancies, the company has to claim on the supplier QUALITY CONTROL DEPARTMENT Functions of this department is to ensure that the quality objectives of the firm are relevant to meet the requirements of the product quality and are periodically measured and compared against product quality requirement. A major purpose of this department is to ensure that the quality policies of the firm are in conformity with the objectives of this department. The company follows stringent hygiene measures, which are applied after regular laboratory testing 22

 each sample of raw materials must be tested to finding the humidity, quality general contaminations, and pest infections before placing the order each sample of production must be tested in the lab before packing, and it will be packed only if it seems to be of good quality if any products are returned due to customer complaints, they must be tested in the laboratory and find out the reasons

PRODUCTION AND PLANNING DEPARTMENT The first step in production takes place both at adimali and theni where the raw materials needed are purchased in bulk are cleaned, roasted, crushed, powdered and packed and dispatched to adimali for further packing. The raw materials must be kept separately from the finished the goods to avoid contamination. From the production point of view, latest techniques are used in preparing powders. Procedures like stream sterilization are followed to maintain hygiene. Statutory quality parameters are employed in every sphere of production. To ensure that the spices reach the consumer in a fresh condition at a minimal cost the company follows international packing standards to protect, preserve and present its products. For the ISO certification the factory location must be free from environmental contamination objectionable odours, smoke, floods, pest infestation, etc and the equipment and machinery will be well positioned for easy cleaning and maintenance. And Eastern is fulfilling all these conditions. HUMAN RESOURCE &ADMINISTRATION According to the guidelines of ISO the managers and supervisors shall have enough knowledge of food hygiene principles and practices to be able to judge potential risks, take corrective action, and ensure that effective monitoring and supervision takes place.

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ACTIONS TAKEN A 16 hour training to every workers Induction to training Proper documentation of various activities and its revision whenever needed The department is responsible for making all the personnel aware of their role and responsibility in protecting food from contaminations

The training programs are routinely reviewed and updated. The organizations management shall establish, document, implement, and maintain and revise effective food safety management system and update it when necessary in accordance with the requirements of these international standards. For the success of any system the internal and external communication is very important and in Eastern the HR department pays good attention in communication and documentation of these communications. The HR department periodically checks the health status of the employees and keeps them away from production and packing if any severe illness is found. MARKETING DEPARTMENT As per the ISO requirements batch identification is necessary in product recall in emergencies. Each packet of food shall be permanently marked to identify the producer and batch All food products shall be accompanied by or bear adquate information to enable the consumer to handle, store, prepare, and use the product safely and correctly FINANCE & IT DEPARTMENT Finance & IT Departments have only little role in the implementation of ISO22000. They are helping other departments by keeping and updating the correct documents. The software used for IT & Finance is ORION.

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 EXPORT The goods exported should be of good quality and the goods should not be contaminated while the transport. The containers and conveyances for transporting shall be kept in an appropriate state of cleanliness, repair and condition. MAINTENANCE As per the ISO requirements the establishments and equipments must be kept in an appropriate state of repair and condition to function as intended, prevent contaminations etc . for the implementation and maintain ISO a FOOD SAFETY TEAM LEADER (FSTL) Is required in every organization

RESPONSIBILITY OF FSTL To manage the food safety team Ensure relevant thinking Ensure proper working Reporting to the higher authority

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FINANCIAL PERFORMANCE OF THE COMPANY EASTERN CONDIMENTS PRIVATE LIMITED

BALANCE SHEET AS AT 31-03-2007 PARTICULAR SOURCE OF FUND 1. Share holders Funds Share capital Reserve and surplus 1 2 45,60,00,000 29,14,29,965 8,40,00,000 2041,03,117 Sch No. TOTAL 31-03-2007 TOTAL 31-03-2006

2. Loan Funds Security Loan Unsecured Loan 3 4 24,52,67,968 12,68,90,703 26,67,13,431 5, 85,14,256

TOTAL APPLICATION OF FUND 1.Fixed Asset Gross Block Less:-depreciation Block Net Block 2. INVESTMENT 3. Current Asset, Loans&Advances 6 7 5

1,11,95,88,636

61,33,30,804

75,10,80,253 14,42,48,820 60,68,31,433 6, 97, 30,000 65,03,76,180

48,65,99,801 8,65,78,305 40,00,21,495 30,000 43,85,13,860 26

4.Less:-current Liability provision

20,73,48,977

22,52,34,551

NET CURRENT ASSET { 3-4} TOTAL

44,30,27,203 1,11,95,88,636

21,32,79,309 61,33,30,805

EASTERN CONDIMENTS PRIVATE LIMITED P.B.NO.15 Eastern valley,Adimali PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31-03-2007

PARTICULAR

Sch No.

TOTAL 31-03-2007

TOTAL 31-03-2006

1.INCOME Sales Oter Income Total [1] 2.EXPENDITURE Raw materials consumed Packing materials consumed (Increase)/decrease in stock Manufacturing expenses 10 11 12 13 92,24,75,990 13,34,17,187 (76,39,307) 10,93,68,029 56,20,62,971 10,25,12,442 (48,76,125) 7,64,58,699 27 9 1,60,19,05,183 3,52,26,748 1,63,71,31,930 1,09,58,38,662 1,89,43,559 1,11,47,82,221

Employee remuneration&benefit 14 Administrative expenses Selling &distribution expenses Financial expenses Depreciation 15 16

3,48,43,333 5,54,96,083 8,37,26,777 2,87,10,424 5,76,70,514

1,44,24,168 3,04,48,131 5,79,01,142 2,08,32,147 3,46,95,425

Total [2] 3.Profit /(loss) before tax {1-2} 4.Fringe Benefit tax 5.Provision for current Tax Provision for deferred Tax 6.Net profit/(Loss) for the year 7.Appropriations:Transfer to general reserve Proposed dividend Tax dividend Net profit/Loss after appropriation Profit brought forward from the last year profit transferred to B/S. 18,88,80,230

1,41,80,69,030 2,19,06,29,000 10,80,000 6,80,61,966 1,13,79,991 13,85,40,943

89,44,59,000 22,03,23,221 9,06,648 5,37,74,141 2,29,74,953 14,26,67,479

1,38,54,094 4,44,96,000 75,62,095 7,26,28,754 18,88,80,230

14266748 3,78,00,000 53,01,450 8,52,99,281 103580950 261508984

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CHAPTER 4 DEPARTMENT PROFILE

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DEPARTMENTS

Eastern Condiments Pvt. Ltd. Adimali has ventured its functioning into various departments. The study mainly carried out on its six departments namely;

1. HUMAN RESOURCES 2. MARKETING 3. FINANCE 4. PRODUCTION AND PLANNING 5. EXPORTS 6. E.D.P AND I T SECTOR 7. PURCHASE 8. QUALITY CONTROL 9. MAINTENANCE 10. PRODUCTION PLANNING AND CONTROL

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HUMAN RESOURCE DEPARTMENT

Human resource is the most important asset of every company. It is the back bone of every organization. The success and failure of every company is dependent upon its human resource. It is a fact that the people are vital for the effective operation of a company as human efforts and minds are the main driving force behind any organization. Employment of competent and specialized persons at various levels is one important reasons of their continuous success. Moreover employment of women at certain key areas of operations avoid to great unreasonable labour problems. The key factor in the growth of Eastern is mainly the good and healthy employer-employee relationship. About 1700 employees are working with one heart and institution, where 80% comprises women workers. OBJECTIVES OF H.R DEPARTMENT

Manpower Planning Recruitment Training and Development Induction Wages and salary administration Statutory compliances Leave administration Grievance Redressal Personal counseling Compensations and Benefits Welfare Performance evaluation

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STRUCTURE OF HUMAN RESOURCE DEPARTMENT IN EASTERN

GROUP DIRECTOR

MANAGER H R

DEPUTY MANAGER H R

ASSIST. MANAGER H R

H R OFFICER

JUNIOR OFFICER

WORKERS

CLASSIFICATION OF WORKERS 1. Senior workers 2. Junior workers 3. Piece rate workers 4. Daily wage workers 5. Technical workers(workshop and maintenance) 6. Apprentice

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RECRUITMENT AND SELECTION Recruitment is only one of the steps in the selection process. Vacancies arising in an organization due to various reasons such as resignation, termination, death, employs promotion or transfer etc. have to be filled by recruitment and selection. RECRUITMENT PROCEDURES 1. DIRECT RECRUITMENT: In Eastern, this method is used frequently for recruitment. The firm places jobs advertisements in Malayalam, English news papers and T.V media and tries to attract as much capable people from outside its company services. 2. INTERNAL RECRUITMENT Several posts are filled from among the internal candidates. Whenever a vacancy arises efficient and skilled workers from the rank and file of the company are promoted and appointed in the company. Besides, evictees, local candidates who belong to surrounding panchayath have preference in subsequently arising vacancies. .

SELECTION

Tests are conducted only for senior position. Interview

TRANSFER Employees are transferred to different departments on the basis of their skills.

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PROMOTION Those workers having required qualification and eligibility are promoted to supervisory cadres. PERFOMANCE APPRAISAL Eastern is following a special type of system for appraising the workers i.e. Self Appraisal System. Here the performance of individual employee is evaluated by the employee himself. The employees will evaluate their own performance and gives a report to the supervisor, for a particular period of time. If the supervisor is satisfied he/she will forward it to the top level management by recommending on incentive or promotion. WAGES AND SALARY The workers are paid in two systems;

Piece rate system

Under piece rate system of payment, wages are paid on output and not on time. Production goes up when wages are paid according to piece rate system. This mode of payment prevails in the packing section.

Salary system

This mode of payment is applicable for the rest of the workers, which also includes the loading and unloading workers.

OTHER NON- MONETARY BENEFITS The company provides a lot of non- monetary benefits to their employees. Some of them are as follows;

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1.Transportation: Transportation is provided to the employees to different destination points at a subsidizedrate 2..Canteen facilities: All the employees are given free food at Eastern. 3. Personal Protective Equipments: Personal Protective Equipments like head covers; aprons and uniforms are provided to the workers. 4.Medical insurance: The employees are provided with medi-claim policy, which gives free medical insurance to the employee and his/her family. 5. Pension Scheme: The scheme has been formulated for those employees who have retired from their work. 6.Annual Medical Check-up: The employees are provided with free annual medical check-up facilities. 7.Tours and Picnics: Tours and picnics are conducting once in a year which increases the motivation and initiatives of the employees. For the effective administration and working of the company; meetings are organized on all Fridays to discuss various issues and working of the company. The Chairman and the managers of the various departments head the meeting.

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GRIEVANCES AND REDRESSAL Generally, grievance means any factor involving wages, hours of work or condition of work environment. In Eastern all work as a family and all workers are free to meet his superior if he has any grievances. The company has appointed some officials to whom the employees can directly intract and tell their problems in any matters. And it will slowly reach the management. For this the company also conducts some training programmes and meetings where the employee can speak about any problem he as in the company. FUNCTIONS AND RESPONSIBILITY OF HR MANAGER Recruitment and selection and manpower planning Maintaining personnel record of all the employees Enter into long term settlement with trade union Maintenance of standing order for both managerial staff and subordinate staff Providing leadership for management of industrial relations and employees welfare functions of the company Provide basis for corporate strategies and policies for maintenance of industrial peace and workers motivation. Evolving office systems and implementation. Ensuring observance of statutory stipulations concerning employees under the different acts,sales regulations etc. Evolving and implementing the stading orders.

38

MARKETING DEPARTMENT
Marketing is the core of all management functions. One of the important reasons behind the success of the company is its marketing strategy compared to their rivals. The system followed by Eastern is very unique and it has been very effective. They deal with the wholesalers and retailers directly at their door step with the help of around 75 vehicles going in as many different routes covering the entire state. DIRECT SALES This peculiar feature of Eastern curry powders helped it to vary from other companies. The group directly distributes the products to retailers in Kerala. The company has around 75 vehicles which go on around 75 routes covering the entire state. A sales executive, sales assistant also accompany with driver in each van for the sales.

Structure of Marketing Department of Eastern

SENIOR MARKETING MANAGER

DEPUTY MANAGER

ASST MANAGER

SEN.SALES EXECUTIVES

SALES EXECUTIVE
SALES ASSISTANT SALES DRIVER 39

The various sales techniques consist of:

Route Sales Factory Fresh Outlet Inter Company Sales Export Sales

The sales executive for each route gives the order to be dispatched to each sales depot. He also takes care of the billing and cash transactions. After making a sale, a sales invoice is made and the summary is given to the cash department. The sales assistant places the order to different shops. The despatch of goods to different routes is divided into two:

Sun-Fri Mon-Sat

After the delivery of goods, the vans return and by verifying the order form the stock is checked. The accounts are maintained on a weekly basis. The company has around 40000 retailers and 15 dealers. Mainly, cash transactions are undertaken and credit facilities is entitled to only around 200 parties. On every Monday following the production week, the products are distributed from the groups sales depot to every retailer by companys own vehicles. A string of vans carrying freshly powdered spices is a common sight on the mountains. This is one of the important advertisement techniques of the company. The advertisements through these vehicles have no additional cost. There are hundreds of vehicles carrying freshly powdered spices distributing the various products across the state. It gives maximum publicity and advertisement to the company and the brand. A meeting of the sales executives are held every week after they return from their different routes. Here every aspect of the weekly sales will be discussed and any problems arising can be brought to the notice of the management. 40

By the direct distribution the company has achieved a lot of benefits. Some of them are as follows;

They can deal with the wholesalers and retailers directly at their door step. The company can contact the dealers and traders continuously and evaluate the business. The company can avoid the role of intermediaries in the distribution of the product. It helps to avoid unnecessary commission, brokerage and other related expenses. The company can maintain a good relationship with the wholesalers and retailers .The companys own vehicles undergoing distribution aids to give an important mode of advertisement in addition to the other media advertisements. This incurs no additional cost.

Eastern Condiments has entered into World market in the recent years. In India it is capturing both urban and rural markets. In Kerala it is the market leader with more than 60% market share to almost all its products. In Tamil Nadu and Karnataka the company holds a 20% share and its gaining strength. It is also to be noted that 50% of the market is consuming is still using homemade products, 50% of the market is still untapped. So there is lots of growth potential for the company. PRICING Eastern is the price leader in kerala market. And its product had higher price when compared with other products. But it is accepted because of its quality and goodwill. COMPLAINT HANDLING It is done on a weekly basis by the sales representatives as they are meeting the retailers and customers directly and the complaint can be collected. Later it will be reported in the weekly meeting.

41

PROMOTIONAL ACTIVITIES Company introduces some promotional measures like Card scheme to motivate their retailers. They also conduct some tours and give awards to some of the retailers. Company is conducting dealers meet 5 times in an year. Now the company is giving more importance for the promotion of EASTEA. Sales target is fixed once in 6 month and is hoping for 10% growth every year. Company have 4 depots, that is at Kozhikode kottayam Trivandrum and Trissur Company has takeover MOHANLAL TASTE BUDS and promoting it as their second brand.

42

FINANCE AND ACCOUNTING DEPARTMENT

Finance plays a key role in the all the activities of business. It may be defined as the service of money. It deals with the principles and methods of obtaining control money from those who have saved it and of administrating it by those who control it. The success of finance function depends on how finance is planned at the various levels of administration under the management. Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. It deals with finding out various sources for raising funds for raising funds for the company. IMPORTANCE OF FINANCE DEPARTMENT 1. Financial departments main aim is to use business funds in such a way that the earnings are maximized 2. Financial department is necessary to every type of organization, irrespective of its size, kind and nature 3. Financial department is useful for all types of organization where there is any use of finance.

FUNCTIONING OF FINANCE DEPARTMENT The success of finance function depends on how finance is planned. The inflow and outflow of funds should be properly matched so that funds become available for payments when it becomes fall due. Financial Department of the company constitutes the accounts and administration and cash management, which is all connected via the ORION software of the company.

43

SOME IMPORTANT FUNCTIONS OF THE FINANCE DEPARTMENT 1. Preparation of Corporate Plans, annual plans and budgets. 2. Advising management on funds utilization and its implementation. 3. Evolve an audit manual. 4. Monitoring the process of budgets achievement. 5. Providing taxation pinning and advisory services to the company. 6. Preparation of financial statements and thus identifying the financial strengths and weakness of the firm by properly analyzing and interpreting the financial statements

STRUCTURE OF FINANCE DEPARTMENT OF EASTERN FINANCE DIRECTOR

COMPANY SECRETARY

ASST. GENERAL MANAGER

ASST. MANAGER (AREA WISE)

SENIOR OFFICER

OFFICERS

JUNIOR OFFICERS

44

Finance and cost functions are headed by the Group Director Finance, and accounts, ERP, internal auditors section etc. are the major auxiliary gangs giving their hand for the smooth functioning of finance department. All divisions of the company has its own finance dept and all these divisions have to report to AGM at Ernakulam office. All details regarding the financial activities are collected via the Orion software. So when a data regarding production or sales or cash etc is entered in the respective dept the finance dept will get it via the software. Then the finance dept will check whether the information entered is correct. The banker of the company is Federal Bank. Daily collections made by the sales staff is deposited in the bank account. Eastern requires a daily working capital of Rs. 3 crores. The cash turnover of Eastern condiments will come around 15 crores per month. The turnover of the company in the year 2006-07 was around 200 crores. Currently the organisation has a loan of Rs 40 crores.

Sales tax and income tax returns filing. Sales tax is filed monthly through e-filing from Adimaly office Income tax filings are made from Ernakulam office. External audit is done every 6 months. Internal audit is also done in the organisations. Some tests are conducted to select the persons who are to do the internal audit.

Duties and responsibilities

The finance and cost function are headed by the director finance.Under the director finance there should be an assistant general manager.

45

The duties and responsibilities of assistant general manager (AGM) are as follows: Submission of strategic matters regarding finance to board for decision. Submission of quarterly and annual audit accounts to the board. Presentation on dividend decision(final and interim dividend if any). Financial concurrence on corporate investment decisions. Overall supervision of day to day functions of department as HOD

Duties and responsibilities of Deputy Manager (Accounts /Finance). Controls day to day accounting Proper audit trial by keeping voucher and support document. Bank account operations and bank reconciliation. Keeping financial ledger and day to day book up to date. Preparing periodical trial balances. Statutory audit is dealing with deputy manager account.

Duties of assistant manager (Accounts /Finance). Preparation of quarterly, half yearly, annual financial statement. Arranging financial audit. Maintenance of books and records. Treasury functions. Reporting to the top management. Senior officers in charge of data entry.

46

PRODUCTION DEPARTMENT

The first step in production takes place both at Adimali and Theni where the raw materials (chilly, turmeric, coriander) needed are purchased in bulk are cleaned, roasted, crushed, powdered and packed and dispatched to Adimali for further packing. The distribution is handled by the company itself. Eastern Condiments Pvt. Ltd. deals with production and packing of curry powders, Masala, instant pickle powder and the processing of pickles. The company has a production capacity of 12 tones per day. The company at Theni has a production capacity of around 20 tones per day. From the production point of view, latest techniques are used in preparing powders. Procedures like steam sterilization are followed to maintain hygiene. Statutory quality parameters are employed in every sphere of production. To ensure that the spices reach the consumer in a fresh condition at a minimal cost, the company follows international packing standards to protect, preserve and present its products For bulk packing, the VACCUPAC system is used where in products are packed in vacuum, thus protecting the powders from fungal infection, moisture, oxidation etc. Production function performs according to instructions from the PPC.PPC gives monthly indent which is converted into weekly plans by the production dept. A stock of goods for 3 days production is kept with the dept in case of contingencies. In production a normal waste of 2% to 5% is expected. All details regarding production is given to PPC daily. The dept has 14 vehicles for the purpose of transferring raw materials. The dept has around 750 workers. The production is dependent on the skill and experience of the workers.

47

QUALITY ASSURANCE
The company follows stringent hygienic measures, which are applied with regular laboratory testing .The Indian Spices Board with their Spice House Certification has recognized the companys obsession with quality and hygiene. Eastern has also achieved the highest ranked approvals for quality, the Hazard Analysis Critical Control Point (HACCP), ISO 9002 certification and ISO 22000 certification. The company ensures that superior standards are at every level-right from processing raw materials to packing the final product. Old methods of powdering using new technology are what the company believes in. Wooden spatulas to mix the powders and huge aluminium vessels are used to roast spices. Grinding is done at required temperatures, using micro pulverisers and the unique flavour lock technique, so that the oils in the spices are conserved, giving out the right flavours.

PRODUCTION FLOW CHART

Chilli,Coriandes, Turmeric & Spices

Cleaning

Drying

Roasting

Mixing

Powdering

Packing

Marketing

48

PRODUCTION DEPARTMENT STRUCTURE GROUP DIRECTOR BOARD

PRODUCTION MANAGER

DIRECTOR MANUFACURING

PLANT MANAGER

PLANT IN CHARGE

Store Keeper

Roasting Roasting Supervis Superviso or r

Powdering Supervisor

Hard packing Supervisor

Machine packing &hygiene super

Inwards Dispatch Supervisor

Store Store Assistnt Assistant

operator

Plant Plant operator

Machine Operato Operator

Machine

Workers

Workers

Workers

Workers

Workers

49

Workers

Workers

EDP&IT DEPARTMENT

Workers

Workers

Workers

Workers

(INFORMATION TECHNOLOGY DEPARTMENT)

The whole organisation is computerized. All the departments are connected via a network. Eastern uses oracle based software called Orion, which has been customised to suit the needs of this particular organisation. This software has been developed by 3i.The networking is done through a BSNL lease line and it has 2 mbps speed. Currently the organisation has only 1 lease line, but they will get 2 more lease lines to make the system foolproof at all times. So the organisation will have a total of 3 lease lines in the near future The network's main server is situated in Ernakulam and all the different divisions have their own domains to connect to the main server .So all the plants and depots of Eastern Condiments is connected via network and since the entire system is computerised, all data is to be entered through the Oracle software, which enables quick share of information everywhere. All data from purchase to sales is entered into the oracle. ERP (Enterprise Resource Planning) is also very much alive in this system. ERP enables fast transaction and in being systematic in all its functions .ERP also helps in generating MIS reports which will help in decision making.

The main advantage of using IT in an organisation is to make information readily available. So in Eastern also information is readily available and this makes decision making much faster and accurate. And since the software is oracle based, there is no security issue also.

The organisation has made tremendous investments in developing its IT department which can be seen from the fact that last year alone Eastern invested 3 crores here .The department also is starting to use palm-tech, which will be given to sales staff. This will make data more accurate. 50

DEPARTMENT STRUCTURE EDP MANAGER

SENIOR OFFICER

OFFICERS

TRAINEES

DUTIES AND RESPONSIBILITIES Duties and responsibilities of an EDP manager. To be in search of latest technologies / development for system improvement. To report development to board,get the sanction for new capital investment,as and when required. Ensure that systems are functional at the optimum level. Duties and responsibilities of assistant manager. Actual field jobs on system in time ,to avoid losses and other overheads.

51

EXPORT DEPARTMENT
Eastern Condiments Pvt Ltd is always maintaining it high quality and effective distribution in the overseas market too. Eastern foods started exporting in the year 1995. Today the company is exporting its products to almost all gulf countries, and to the different parts of the world, where the company has its own distributors. The company exports above 100 tomes per month. For exporting the eastern condiments have a branch at Okkal in Kerala where special packing for exports is done and where stuffing of goods is also done. The rest of the procedural work is done in relation to exports is done at Adimali. Major export destinations for the company are Middle East, USA, Australia and UK. The company is also planning to enter markets like Japan and other European countries. The major portion of the export is into Dubai. Each container has a capacity of 12 tones and monthly 50 containers are exported. In the international market the product is marketed through distributors on commission basis. Time required for Transportation: Dubai Gulf U.S.A Europe 5 to 7 days 15 days 1 month 20 days

For export Eastern has import and export codes. It also has Spices Board registration for exporting spices. Each country has its own specifications and requirements for the export product which has to be met by the company before exporting. All exports are done through the Cochin Port. Each container which is exported will be checked before dispatch. About 500 products of eastern are exported. Some items like pickles are meant only for exports and is not available in the local market. The exports division of Eastern had a 50% growth in last 52

year. The turnover from exports alone for the company was 40 crores All the transactions are done in dollars only, including for Middle East and other countries. ACHIEVEMENTS Eastern is the leading exporter of condiments from India.Eastern has received the Spices Board Award for best exporter continuously for the last 10 years. Structure of Export Department in Eastern EXPORT MANAGER

ASSI. MANAGER

OFFICERS

SUPERVISOR

JUNIOR OFFICER

WORKER

DOCUMENTATION PROCEDURE All negotiations regarding the export procedure are done through banks. The goods are dispatched at the Cochin port and the company meets the expenses from the point of dispatch to the boarding point and the documents are handed over the bank. 53

The overseas distributor gives a purchases order to the company. Upon the confirmation of the order with prices the documents such as invoice, packing list are prepared and shall be approved by export manager and these documents are sent tot C&F agent along with the purchase order of the overseas buyer. On receipt of these documents, the C&F agent sends it to the customers authorities and obtains permission for stuffing. Accordingly the information regarding availability of vessels is communicated to the company. Based on the information given by C&F agent, information about the stuffing is given to the central excise authorities , i.e. the house stuffing procedure. After stuffing, the details of shipment are sent to the overseas buyers for their information. It is ensured that the C&F agent for onward submission to the bank prepare the following documents and submits to the Director under copy to the Manager (exports) for verification and records of Export Marketing Department.

Invoice Packing List Bill of Lading Bill of Exchange Certificate of Origin Health certificate

SDF-self declaration form it is the declaration regarding export of goods and services according to FEMA. On receipt of the above original documents, it will be verified and approved by Director before presentation to the bankers. The document copies received by Manager (exports) shall be verified and signed by him/her before taking the same as records. The documents are handed over to the bank for negotiation and the bank after negotiation sends the documents to our Overseas Buyers Bank. Copies of the above documents are maintained.

54

PURCHASE DEPARTMENT
Performance of a manufacturing firm always depends on the efficiency of its purchase department. The various raw materials need for production is purchased by this department. If the materials are purchased at right time at the right quality from the right suppliers it results in production of materials as per the request of inventory control section. OBJECTIVES OF PURCHASE DEPARTMENT

To ensure that three new suppliers are included in the approved list every year. To evaluate the existing suppliers and up date the list of approved suppliers every year.

To reduce the rejection to below 2%.

Functioning Marketing dept will give a statement of required material to PPC.. PPC will design a material requirement plan, and they will make a weekly indent for purchase. This indent will be given to purchase dept, and then purchase dept will invite quotation for the above. After considering all the quotation they will purchase material from the least bidder. Purchase is based on the predetermined standard specification, which will be given to suppliers. Before purchase sample will be received from suppliers and it will be tested. In the case of approved suppliers direct purchase is accepted, and in the case of new suppliers two trial purchases is done to test their product quality and performance. Material for different schemes are purchased from Adimaly Major Purchase of raw materials is done through brokers

55

STRUCTURE OF PURCAHSE DEPARTMENT

DIRECTOR PURCHASE

GROUP PURCHASE MANAGER

MECHANICAL

AUTOMOBILE

ELECTRICAL

OFFICERS

PURPOSE

To lay down procedure for purchase and to evaluate suppliers. In order to select suppliers on the basis of their ability to meet the quality requirements.

The purchases of items (black pepper, cardamom, coriander, etc) are taken care by this department.

Items such as chilly powder, turmeric powder and other spices are received by this department as per stock transfer from Theni.

56

Packing materials and printing materials are purchased by corporate department at Ernakulam.

Fixed asset are purchased by corporate purchase department.

DIVISION OF PURCHASE In Eastern the purchase can be done in five small divisions. Main purchase office at ErnakulamThe purchase department is divided into small groups because of convenience. The five divisions in purchase department are given below: 1. Packing division Packing division mainly deals with purchase of packing materials. Packing materials are purchased from outside as well as made within the organization. 2. Raw materials division The raw materials for production are purchased by this department. The raw materials are purchased from Theni, Tamil Nadu and Guntur, Andra Pradesh. 3. Mechanical purchase division It is focused on purchasing of machinery items and their parts. Machineries are purchased from the corporate office at Ernakulam. 4. Electrical purchase division It deals with purchasing of electrical components. 5. Automobile purchase division The automobile equipments are purchased from Eicher, TVS Automobile etc. 6. Material for different schemes are purchased from Adimaly

57

DUTIES AND RESPONSIBILITIES. Duties and responsibilities of General Manager. To be responsible for ensuring that all requisite raw material, spices, equipment etc are available, so as to ensure smooth production. To ensure optimum inventory levels. To avoid stock out situation of essential items in the warehouse. Product inventory is kept to the minimum level as possible. To avoid obsolescence of inventory by time action. To report to the board on inventory control measures. To arrange procurement of items as per indenters requirement. To standardize commercial conditions of procurements keeping organization interest at the top. Co-ordinate with warehouse head for inventory replenishment activity. Timely procurement to avoid stock out situation. Receive purchase requisition from the indenters invite tenders, and award purchase order of various items. Follow up with suppliers. To develop alternate vendors and keep updated list of suppliers.

Duties and responsibilities of purchase manager

Duties and responsibility of assistant manager (purchase).

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QUALITY CONTROL DEPARTMENT

One of the major department of Eastern condiments Pvt. Limited is quality control department. Eastern brought up a good quality control technology. This department has a number of responsibilities towards the working of the company. This department also a good part in selecting raw material, which is going to use for production. Eastern is currently on an aggressive growth path and is in the process of transforming itself into a highly mechanized, quality conscious and IT-enabled organization. The quality control department got two main certificates;ISO 9001-2000 for quality management and ISO 22000 for food safety in September 2005. The quality control department divided into 3 segments- microbiology, chemical, instrumental OBJECTIVES OF QUALITY DEPARTMENT

To bring down the total aflatoxin level of chilly and chilly based products to a maximum of 10 ppb

To bring down the TPC to a maximum of 50000cfu. To establish testing facilities to pesticide residue. To maintain the quality according to the customer requirements. MICROBIOLOGY

Eastern has the first fully automatic microbiology laboratory in India. Helpful to know the contaminants included in the raw material. State of the art equipments are imported from

59

France and other foreign countries. These equipments are one of the best in the country today for a company in food industry. Amount investment in lab around RS 3 CRORE

CERTIFICATES HACCP - Certificate issued by Food Cert BV Netherlands. Accredited by RvA, the first body in the world for food safety accreditation. ISO 22000-2005 Eastern is the first company in India to get the ISO 22000 certification issued by Food Cert BV Netherlands and accredited by RvA, the first body in the world for food safety accreditation

CHEMICAL & INSTRUMENTAL Stringent quality control techniques has got Eastern several quality certifications and accreditations, including the HACCP and ISO 22000. Moreover, the Spices Board of India has awarded Eastern for being the 'Largest Exporter of Spice Powders' in consumer packs, consecutively for nine years. Certifications under process: ECPL has initiated processes for the following certification:

NABL - for the laboratory ISO 140001 - environmental EUREP GAP - to assure quality of raw material at the farm end BRC (British Retail Consortium) - to ensure quality from farm to fork 60

Eastern has installed a fully-automated Microbiology-testing Lab to ensure stringent quality in spices and ready-to-eat food products.

ECPL is the first company in India to have such a system. Tempo Reader detects yeasts and moulds within 48 hours. Eastern is the first company in India in the spice sector to have this fully-automated ic system.

Vitec 2 Compact is used to detect bacteria. Mini Vidas is an automatic instrument which enables Pathogen-screening. Tecra Unique Plus - The Tecra Unique Plus Salmonella Test takes less than 22 hours as compared to traditional methods of Salmonella-screening which takes 5-6 days. HPLC is used for Toxin detection, pungency of chillies and Sudan Dye detection. Gas Chromatograph - This equipment analyses pesticide residue count UV Spectrophotometer - This determines color value of chillies, curcumin

in turmeric, piperin in pepper.

NIR Spectrophotometer- For Nutrition factor analysis. ELISA Plate Reader - Is used for aflatoxin, ochratoxin analysis. Luminar Pocket Swab Plus - Based on the presence of cell component ATO, Luminator Pocket Swab can estimate microbial count within minutes. Air Ideal- Is used for environmental monitoring. .

61

STRUCTURE OF QUALITY DEPARTMENT IN EASTERN GROUP DIRECTOR QUALITY

DY.MANAGER QUALITY

ASST.MANAGER QUALITY

SENIOR OFFICER

JUNIOR OFFICER

MICROBIOLOGIST Duties and responsibilities of manager

CHEMIST

To retain ISO Certification by undergoing Quality Audits periodically. Develop and implement quality policy, update it periodically and get them approved by the board.

To ensure that Quality Assurance budgets are not exceeded. In charge of Quality Assurance department. 62

In charge of day to day quality check.

The company follows stringent hygiene measures, which are applied after regular laboratory testing. The Indian spices board with their spices house certification has recognized the companys obsession with quality and hygiene. Eastern is also aiming at reaching the highest ranked approvals for quality the Hazards Analysis Critical Control (HACCP) and the 9001-9002 certifications. The company ensures that superior quality standards are followed at every level from processing to packing and to the final product. Old methods of powdering using new technology are what the company believes in. wooden spatulas and huge aluminium vessels are used to roast spices. Grinding is done at required temperatures, using micro pulverizes. The unique flavor lock techniques are used at Eastern so that the oils in the spices are conserved, giving out the right flavors. ISO 22000 was implemented. It was the first company in India. RESEARCH AND DEVELOPMENT Eastern is in house research and development continuously endeavors to improve its already existing standards. Further the company also innovate new product concepts, consistently in taste, pack, after pack, ensured through strict quality control. The packing plant of Eastern Condiments is complete with advanced machinery, implex pulverize that can pound finest spice powders without heating it up at all. This process preserves all the essential spice oils. As a result Eastern curry powder retains their natural freshness and flavor. It is so pure and fresh that need to use much less and have excellent taste. The company is fully fledged with facilities including pouch making and printing automobile engineering division, Agmark lab.

63

MAINTENANCE AND FSTL DEPARTMENT

Maintenance department of Eastern are responsible for up keeping the plant and equipments in good condition. Maintenance department of Eastern has three sections. 1. Electrical 2. Mechanical 3. Stores Structure of Maintenance department in Eastern

GROUP DIRECTOR

MAINTENANCE MANAGER

ELECTRICAL

MECHANICAL

AUTOMOBILE

TECHNICIANS

TECHNICIANS

TECHNICIANS

64

FUNCTIONS OF MAINTENANCE DEPARTMENT 1. Preventive Maintenance Preventive Maintenance is done to avert breakdowns, improve efficiency of working and to keep a routine monitoring of the machineries. There is a routine maintenance schedule and the preventive maintenance is done according to it. This is done weekly or monthly basis according to the conditions of the machine. Preventive maintenance is done based on past experiences and requirements 2. Break Down Maintenance This is done to restore the machine back to the work if it undergoes a breakdown. It is done according to the priority of the machine. This is done in minimum possible time so that the production of the plant is not affected. Project Activities Maintenance is mainly for running machinery. All machines except some critical maintenance machines are maintained by the dept itself. Rest is given for contract maintenance. The dept has around 35 staff. The procedure for breakdown maintenance is, when a machine breaks down the concerned supervisor reports to maintenance and the supervisor along with the worker will go and check/repair. 65

FSTL (Food Safety Team Leader) ISO 22000 requires that a person irrespective of his other tasks in the organisation shall be in charge of the entire systems of the ISO 22000. He shall make sure that the systems of ISO is working according to order and is properly documented.All the responsibilities of the FSTL is also mentioned in the guidelines of ISO 22000.

PRODUCTION PLANNING AND CONTROL DEPARTMENT

Production planning and control is the department which plans everything regarding production. It finds out what is to be produced, when, where, what quantity, and it even informs the purchase department about what raw materials is to be purchased for production. PPC regulates stock inflow and out flow with the help of ORION software, so the amount of stock will be readily available. With the help of ORION they get a statement, based on that statement they can also manually check the amount of stock and production made. All 5 locations are handled from Adimaly itself

PROCEDURE They make plans according to the data provided by the marketing department (The requirements for coming period)Based on this they give instruction to the purchase dept and the production dept.They plan for 3 months later it divided on monthly basis and finally supervisors in production scheduling on weekly basisProduction is according to the requirements and will depend on seasonal demands.Total number of employees in this department is 25.

CSR OF THE COMPANY 66

Eastern Condiments Pvt Ltd, the major food products manufacturer is on the way of powering the nations growth with heart to heart touch of humanity. As a responsible corporate citizen, Eastern has been addressing the issue of community development in the neighboring areas of its stations through CSR. The activities are

EASTERN NEWTON SCHOOL The Eastern group entered the area of education with the setting up of the Eastern Public School at Adimali, Idukki dist; Kerala. Eastern Public School ensures high quality education from kinder garden to primary levels with C.B.S.E syllabus providing all the residential facilities and highly trained faculties to the thousands of families residing the hills of Idukki district Kerala.

MEDICAL CAMP They conducted a free medical check up for people who falls below poverty line.

CASH AWARDS They had given cash awards for the merit students. They encouraged students to study well and to score good marks.

67

CHAPTER- 5 SWOT ANALYSIS

68

1. SWOT ANALYSIS

1.1 STRENGTHS Company has got ISO9001-2000and 22000 certification. products

In Kerala it is the market leader with more than 70% market share to almost all it

Eastern is the largest exporter of spice powders from India .Its exports are

mainly to Middle East, U.K., U.S.A, Australia and Germany. Presently the company is exporting 60% of its products

consecutive

Award for outstanding export performance by Spices Board

of India, for eigh

years 1997-98 to 2004-05.

DIRECT SALES - companys own vehicles undergoing distribution aids to give an

important mode of advertisement.

documentations.

Fully computerized departments- it enables them easy handling of transactions an

Ensures high quality in all products through modern lab facility.

1.2 WEAKNESS

69

 powders and they are not aware of other products. Lack of research Less commitment from the lower level employees Location of the factory is not suitable for export

While hearing the name Eastern the consumers are having only the brand image of curr

Lack of availability of raw materials in local market

1.3 OPPORTUNITIES

Extend the product line (instant gravy mix) like the rivals. Extend the market to other countries also. Ensure availability of pickles in the local market.

Attract foreign investment for further development Participation in international exhibitions and food fest Starting a spices garden it gives two opportunity 1)can be used for research activities 2)it can be promoted as a tourist spot

vegetable marketing company is already well known among the house wife ,
so a branded vegetable shop is an opportunity 70

1.4 THREATS

High competition in the local, national and export market unexpected climate change
appreciation in the money value change in consumer attitudes and preference

CHAPTER-6 OBSERVATION
71

OBSERVATION

72

 Eastern curry powders is a household name in India and is the largest exporter of Spice powders in consumer pack from India that export mainly to Middle East, U.K.,U.S.A, Australia and Germany. Presently the company is exporting 60% of its products. Total number of employees are 1700 The company is an ISO 9001-2000 certified company. The company won prestigious award for out standing export performance by spices board India, for eight consecutive years 1997-98 to 2004-05. advertisement. The company has fully computerized departments. The company ensures high quality and taste to all its products. The company always tries maintains good customer relationship. Though eastern has diversified product still they are known by curry powder brand. The company have a better chance to extend the market to some other countries also. The pickles are not available in local market. The company began to face competition in the local, national and export market. The company have 80 vehicles for the delivery purposes. The company has a well organized and co-ordinated organizational structure.

The companys own vehicles undergoing distribution aids to give an important mode o

73

CHAPTER 7 CONCLUSION

74

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CONCLUSION

The study conducted at Eastern Condiments Pvt. Ltd., which is one of the pioneer in Condiment industry and the market leader in variety of packaged curry powders in South India. It was a general study regarding all functions and aspects of Eastern Condiments Pvt. Ltd., and giving more importance to Human Resource, Marketing, Finance, Production, and Export & E.D.P. It is found that a cordial relationship is maintained between all departments for the smooth functioning and achievement of the organizational goal of maintaining the market leadership and companys image. Eastern has achieved these enviable heights mainly due to the hard work and commitment of quality besides bringing a good product at right prices to the consumers. The study helped me to understand that how the company identifies the right taste of the consumers and how it became the leading brand in south India and largest exporter of spice powders in consumer pack from India. I was also able to understand some of the opportunities and threats of the company. Being a student of MBA, the internship entitled An organisational study of Eastern Condiments Pvt. Ltd. has benefited me with so much of confidence and awareness, so as to be capable of myself to work in a firm. The study gave me an opportunity to experience and improves my practical knowledge besides my theoretical knowledge about an organisation.

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REFERENCE
www.google.com Annual report of the company 2007-08. Other company journals and reports.

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