CHAPTER 1

INTRODUCTION

1.1 HISTORY OF ORGANIZATION

Fruitoman’s is the best known brand among all the processed fruit products
available in India. Fruitoman’s started off way back in the late forties in a small
town called Bharanaganam. It was a rather small unit which produced pineapple
squash, and pineapple syrup.
Late Mr. N.J. Thomas Ettuparayil is the man behind this company. He was born
in Kannadi village of Alappuzha district. Because of his hard work and effort,
the organization began to grow. Mr. N.J. Thomas, who is internationally known
as man who wrote the Fruitoman’s success story, and Mr.P.S. Luckose opted for
pineapple for definite ecological and nutritive reasons. They were guided then
by the fruit-products technologist Mr. Suriaprakash Rao. N.J. Thomas was for a
significantly long time the member of the Central Advisory Committee
appointed by the Government of India to look into the affairs relating to the
processed and the canned fruits and vegitables.
In fact , intrinsic to every Frutioman’s product are certain scientific reasons for
its production. Pineapple for example, is well known for its medicinal and
nutruient qualities. According to Medical Secrets of Food juice of the fresh ripe
pineapple is cooling and nutritive , since it contains a very powerful digestive
enzyme known as bromelin, pineapple juices is used with great benefit in the
treatment of indigestion and hyper-irritability of the stomach. Frutioman’s
products are perfect from health point of view. They are generally free of
synthetic additives .
Back to Fruitoman’s in 1975, Fruitoman’s set up a canning unit at Vazhakulam
in the suburban Cochin. Even today Vazhakulam continues to be south India’s
sourcing centre for the finest pineapple available in India. All Fruitoman’s
factories are equipped with the state of art hardware, and they are manned by
scientists and technologists trained and experienced in maintaining the highest
levels of quality,cleanliness and hygiene. One thing remarkable about
Fruitoman’s is that they are commited to research and development and to the
strictest controls in quality and hygiene.
1.2 Profile of Products

The products can be categorized under the following

 All seasonal canned fruits

o Pineapple Slices
o Pineapple Titbits
o Mango Slices
o Fruit Cocktail
 Fruit Juices
o Pineapple Juice
o Mango Juice
o Orange Juice
o Tomato Juice.
 Fruit Pulp
o Pineapple Pulp
o Mango pulp
o Grape Pulp
o Tomato Puree
 Crushes and Syrups
o Pineapple Crush
o Pineapple Syrup
 Pickles
o Cut Mango Pickle
o Garlic Pickle
o Lime Pickle
o Tender Mango Pickle

 Sauces
o Tomato Sauce
 o Chilli Sauce
 Other Products
o Baked Beans
o Carrot in Brine
o Cauliflower
o Green Peas in Brine
o Potato in Brine
o Sweet Corn

1.3 Mission

The mission is to take up hi tech and innovative applications in their production

process through diligent research and development ,thus keeping up the
worldwide acclamation of their products.

1.4 Objectives
The main objectives of the company are as follows:
 To familiarize with the organizational functions.
 To understand the organizational structure.
 To study various departments and functions of the company.
 To get a clear view of day to day functioning of the industrial
establishments.
 To determine overall performance of the company
 To conduct more research activities in the field of food products
 To continuously grow in business and become a significant player in
Indian market.
 To make an extra effort to reach out beyond the best on quality in every
product and service.
 To determine the strength and weakness of Malabar Food Products and to
identify the opportunities and treats faced by the firm
 1.5 SCOPE OF THE STUDY

The company has 5 departments-Finance and administration, sales and

marketing, production, quality control department and information technology.
Finance and administration department is in charge of all financial affairs. Sales
and Marketing department is in regular search of new goals. Production
department is mainly interested in finding out new techniques of production.
Quality Control department is vested in the hands of a group of specialists who
are always hard working for the quality control.

1.6 METHODOLOGY

This organizational study was conducted by collecting information from

primary and secondary data sources.

Primary data

Primary data are collected from interviewing departmental heads, staffs and
supervisors for understanding the structure and activities of each department. It
includes visiting operational sites of various departments to obtain a physical
feel of the departments and observe the activities.

Secondary data

Secondary data are collected from company’s website, manuals, reports,

advertisement materials etc.

1.7. LIMITATIONS OF THE STUDY

Time limit was one of the biggest problems. Being a vast project more time is
required to get all information. It was not able to get in touch with all
departments because of time limit. The busy schedule of the company personnel

also affected the data collection to a certain extend. Above all owing to the
official secrecy, possibility to collect the data was very difficult. In spite of all
these limitations and difficulties to collect the data it was possible to collect the
available information.
 CHAPTER 2

ORGANIZATION STRUCTURE

3.2 Business and departmental structure

Managing director

Production Sales Quality Finance & Personnel &

&Marketing control Accounts Administration
Manager
manager Manager manager Manager

Asst. personal
Asst. Sales & Quality Asst.
&
Marketing control officer Finance &
Production UME administration
Manager accounts
manager
manager

Workers Electrician Quality control

assistant Clerical staff Accountant
Area manager

Peon Clerk

Sales executives
Peon

Malabar food products is a very fast growing company, having a vast

organizational structure. Each department is headed with well-educated and
experienced personnel. At the top, the Managing Director is responsible to lead
Production, Sales & Marketing, Quality Control, Finance & Accounts and
Personnel & Administration Department. Each of the above department is
headed with managers and they are supported by assistant managers.
 CHAPTER 3

FUNCTIONAL DEPARTMENTS
3.1 Finance & Accounts Department
Financing is an important function of any business undertaking. Finance is
defined as the provision of money at the time when it is required. It deals with
the procurement of funds at the right time and their effective utilization in
business. The activities essential for a successful administration of finance in
any organization comprise financial planning, raising the needed funds, judicial
use of funds, financial analysis and control. These activities become so complex
in modern business that a separate department is set up in most of the
enterprises.
The contributions of finance department to any company and how these
contributions positively affect organisational performance will greatly depend
on factors such as the extent to which the owner/ manager is involved in his
company. The roles and responsibilities of a finance department include but are
not limited to:
a) Bookkeeping
This is the most basic function of the finance department. It involves the day-
to-day recording, analysis and interpretation of a company’s financial
transactions. This will include the tracking of all expenses (purchases,
payments etc.) and sales of finished products. In some startup companies, this
role is often carried out by a bookkeeper who might be replaced by more
specialized payables and receivables clerks as the company grows or expands
its operations. The books maintained in Malabar food products are;
 Journal
 Ledger
 Sales register
 Purchase registration
 Cash book
 Balance sheet
  Bills receivable book
 Bills payable book
 Bank book
 P&L accounts.

b) Management of company’s cash flow

It is the duty of the finance department to manage all cash flows into and out of
a company and ensure that there are enough funds available to meet the day-to-
day running of the company. This area also encompasses the credit and
collections policies for the company’s customers, to ensure that vendors and
creditors are paid correctly and on time; and that the company is also paid
correctly and as when due.

The main transactions in Malabar Food Products Company is sales, purchase of

raw materials and other material payment, salaries and other wages and other
payments

c) Budgets and forecasting

In this function, the finance department works with managers to prepare the
company’s budgets and forecasts and also give feedback with regards to the
financial standing of the company. This information can be used to fulfil the
cash needs of each department, plan company staffing levels, plan asset
purchase and expansions at minimum cost before they become necessary. The
finance department can also use past records from respective departments to
make better budget and forecast over long-term and short-term time horizons.

In Malabar Food Products Company, budgeting is based on the sales turnover

and back down on machines and normal loss.

d) Advising and sourcing longer-term financing

It is the duty of the finance department to advise companies on the best

financing mix that could yield the company the best profit and also help them
source longer-term financing at the lowest cost such that there is a profit level of
liquidity.

e) Management of Taxes

Running a company involves paying tax, and it is the duty of the finance
department to handle tax issues. This includes creating good corporate
relationships with government by remitting PAYE (Pay As You Earn) to the
relevant authority, and ensuring that implementation of tax matters are done
within the framed policies.

f) Management of Company’s Investments

Apart from analyzing and selecting new investments, it is also the duty of the
finance department to manage company’s existing assets. The finance
department should be concerned with current assets apart from fixed assets. The
company’s working capital needs to be managed efficiently in such a way as to
maximize profitability relative to the amount of funds tied up since it has more
implication on the firm liquidity than its fixed asset.

g) Financial Reporting and analysis

Financial reporting and analysis is the function that takes raw accounting entries
and transforms them into meaningful, usable and comparable financial
statements. The finance department contributes to organizational growth by
measuring and reporting on regular bases, key numbers that are vital to the
success of the company. This will likely include a summary of all funding
sources, expenditures and reserves available for future use (excluding those
already committed and budgeted for current period) some non-financial
information. And are usually communicated to managers in a logical and
understandable format.

h) Assist managers in making key strategic decisions

The finance department provides company management with information

necessary to make strategic decisions such as which markets or projects to
pursue, the payback periods for large capital purchases, decision on what should
be given out as dividend out of the company’s earnings and what to plough back
into the business, the best financing mix that could yield the company the nest
profit, decision on how to allocate funds to investment etc., thus, making sure
that money is being used in the best way.

3.2 Sales and Marketing Department

Sales and marketing are critical to any company. While every department under
the roof , accounting, human resources, operations, research & development, etc
,plays a specific and important role, aligning the sales and marketing
departments is the best way to successfully meet your customers’ needs and
generate sales revenue for the company.

The sales and marketing departments in a manufacturing company work

together to:

 Identify groups of potential customers who are most likely to purchase

the company’s products or services
 Develop sales messaging and communication strategies (i.e., email, print,
telephone, face-to-face) to best deliver the message to potential
customers, and
 Regularly track and measure the results to optimize the sales strategies.

A sales and marketing department has many job tasks, but most are responsible
for;

a) Set your goals

The marketing department will specifically help determine the appropriate time
and product quantities. The team will guide production departments on proper
scheduling to meet demand and avoid waste.

b) Develop Your Pricing Strategy

The role of sales and marketing department is to find out whether the company
needs to alter product prices or perhaps abandon production altogether. The past
sales will again prove helpful in decision making. Other factors will include
customer feedback and market trends. The two departments must also deliberate
on the best product placement activities to propel product sales.
c) Customer relations

Customer satisfaction is yet another responsibility for sales and marketing. User
feedback is the best way to understand product performance, such as reviews or
surveys.

Additionally, these teams must address any negative feedback promptly—plus

have standard processes for dealing with product recalls. In such events, the
marketing department must be swift in reassuring customers through public
announcements, media campaigns, and other tactics.

d) Collaborate with All Departments

The sales and marketing department must ensure their goals align with the
company goals. Therefore, keeping clear lines of communication and
maintaining transparency with other teams is crucial. For instance, the product
development team must always know about product changes, whether source
materials or quality demands.

e) Innovation

The sales and marketing department’s responsibility is to also know the latest
market trends, understand the company’s position in the industry, and propose
solutions. Apple is an excellent example of the impact of innovation in
increasing sales. Today and because of staying ahead of market trends and
innovating superior products, iPhones have displaced Nokia, once a leading
brand in the mobile phone industry.

Malabar Fruit Products Company has a strong marketing wing. Marketing

Manager is the head of the marketing department. He coordinates and controls
all the activities related to the marketing departments. An Assistant manager
helps the marketing manager in his functions. Malabar fruit Products Company
is having six sales executives and five area managers marketing under the
assistant sales and marketing manager. Three persons focus on Kerala and One
at Chennai and One at Bangalore.

3.2.1 Functions

 Marketing and Sales Manager

To handle the section

To set a market target

To promote sales

 Assistant Manager

To assist manager in his functions

To verify the orders and suppliers

 Area Manager

Supervise sales executives

Give report to company on the market

Discussion and negotiation with distributors

 Sales executives

Work with the distributors to find new markets

Ensure good distribution

Give daily report

 Clerical Staff
 Order processing

Maintaining records of customers

 Advertisement

Advertisements are the lifeline of business today. Nowadays the world has
become very competitive. In this age of competition, goods cannot be sold
without proper advertisement. Malabar Fruit Products Company advertises its
products in

Television

Radio

News papers

Magazines

Journals

Displays

 Sales Promotion

Sales promotion has become a major factor in success of marketing in recent

years representing short term incentives to encourage purchase or sale of
product or service.

Following are the sales promotional methods adopted by

Malabar Fruit Products Company:-

Free samples of new products are given to consumers along with the existing
products.

Coupons are given with the products and prizes are awarded.

Giving regular offers to the distributors and retailers.

 Seasonal offers to distributors and retailers.

Consumer contests are organized.

 Channels of distribution

A channel of distribution is an organized network or a system of agencies and

institutions which, in combination, perform all the activities required to link
producers with users and users with producers. Philip Kotler defines channels as
“a set of independent organizations involved in the process of making a product
or service available for use or consumption”. Malabar Fruit Products Company
has an extensive distribution network throughout Kerala and Tamilnadu. The
company markets its variety of products through distributors and agencies.
These distributors were across Kerala, Madras, Hyderabad, Mumbai, Gujarat
etc. The company is having 237 distributors, among which 67 were

Kerala distributors.

 Pricing Strategies

Pricing is the art of translating into quantitative terms, the value of the product
or a unit of a service to customers at point in time. Different companies use
different pricing methods. In Malabar Fruit Products Company, the price of a
product is fixed mainly on the basis of cost. Also the price of the competitor is
considered when pricing a product.

 Market Research

Market research agencies help Malabar Fruit Products Company in conducting

market research. Before launching a new product market research is done. After
launching the product also, market research is done in order to know the
consumer response. Market research is also conducted at regular intervals.
3.3 Personnel and Administration Department
Human resource is a resource like any other natural resource. It means that
management can get and use the skills, knowledge, ability etc through the
development of skills tapping and utilizing them again and again. Human
resource is that process of management which develops and manages the human
elements of enterprise. Human resource management is concerned with the
human beings in an organization. It reflects a new outlook which views
organization’s manpower as its resources and assets. The values, ethics beliefs
of the individuals working in an organization also form a part of human
resource. The resourcefulness of various categories of people and other people
available to the organization can be treated as human resources.
Human resource is the most important resource in any organization. It plays an
important role in the success of an organization. To achieve the predete4rmined
objectives, an organization should have efficient, satisfied and well motivated
employees. According to Flippo “Personnel Management is the planning
organizing directing and controlling of the procurement, development,
compensation, integration ,maintenance and separation of human resources to
the end that individual, organizational and social objectives are accomplished”.
Personnel management is an integral but distinctive part of management
concerned with people at work and their relationship within the enterprise that
are conductive both to effective work and human satisfaction. The software
HRMS is developed for the efficient easy and reliable management of human
resource management information in Fruitoman’s. This system computerizes all
the activities done in that department, this also includes reports to the
transactions handled hence computerized storage of human resource
management details can be achieved through this system. Personnel
management is concerned with getting better results with collaboration of the
people. To carry out these activities every organization will have personnel
department. In Malabar fruit Product Company also there is a P&A
department. This department is headed by personnel manager. Assistant
Manager-P&A helps the personnel manager in matters related with the
department.
The following are the major activities of the P&A department:-
To maintain better industrial relations in the organization.
To implement & manage welfare measures for the employees.
To maintain all personnel records and carry out all the administrative works
related with the department.
To formulate & implement personnel policies and procedures.
3.4 Production Department

Production is the process of transferring input into output. The main aim of any
production system is to produce economically the goods and services required
by the customer. Production is the process of making products. In this process,
different inputs like materials, human, capital and other resources are
transformed into higher valued goods and services. Productions are a process by
which goods and services are created. The software purchase and management
system is mainly developed to fulfil the needs of purchase in Fruitoman’s
Ernakulam. This system is developed considering the processes included in the
purchase department of Fruitoman’s. This system computerizes all the
requirements for the completion of the day to day activities done on that
department. There includes reports related to the transactions handled, finished
product so on. Hence, computerized storage of purchase details can be achieved
through this system. In Malabar Fruit Products Company, Production manager
is the head of Production department. Assistant production manager helps the
production manger in duties related to the department. Under the Assistant
production manager there are two engineers.

1. Production Engineer

2. Utilities and Maintenance Engineer(UME)

Production Engineer deals with the various steps in production. He is
responsible for the shift allocation of the employees. The utilities and
maintenance engineer maintains at good conditions. Fruitoman’s pineapple jam
is remarkably unique among all brands of jam available in India. Only
Fruitoman’s pineapple jam contains the highly essential and natural pineapple
fibre and, it doesn’t contain absolutely any synthetic colour. Fruitoman’s canned
products do not contain any artificial flavour or preservative at all. Since canned
foods are cooked, sterilized and packed in vacuum, they remain intact for longer
periods. Once opened, most foods will last as long in the can as ordinary cooked
food, but the same thing will last longer if stored in a refrigerator. It is best to
empty the fruits from the can into a glass or stainless-steel dish. There are lot of
precautions to be taken while canning: we have to make sure that there is no
fermentation taking place within the can, that there is no hydrogen formation as
a result of corrosion of the can or due to overfilling or inadequate exhausting,
and that there is no harbouring of deadly clostridium botulinum. Fruitoman’s
green pepper in brine is immensely popular in both the Europe and the states as
well as in the Far East. Fruitoman’s makes a vast array of confectionery
complements- like custard powder, corn flour, ice- cream mix, baking powder,
jelly crystals, gelatine, china grass, icing sugar and vanilla powder. All these
Fruitoman’s confectionery complements are extremely popular with the
discerning housewives and those interested in cooking specialized dishes, cakes
and pastries. The purchase of raw materials is also handled by the production
department. The production manager has the responsibility of purchasing raw
materials.

3.5 Quality control department

The role of quality control department is to ensure the quality of raw materials
before it is used for processing and after the marketing for final product. The
quality control department is headed by the quality control manager. When raw
materials are collected from outside, the manager assures the quality of raw
materials and then it is transferred to production department. They conduct the
following analysis.

Colour

Flavour

Taste

Acidity ratio

Pulp percentage

Microbiological analysis

Water analysis

The employees under this department are

Quality Control Manager

Quality Assurance Officer

Quality Assurance Assistance

The quality control manager has the responsibility of checking whether the
production processes are under the

 Quality Control Manager

 Quality Control
 Quality Control
 Assistant

Quality assurance officer and quality assurance assistants assist him for
checking the quality measurements. Quality ants are doing the above mentioned
analysis inassurance assist the company at every stage of production and report
it to the production manager. The quality assurance assistant gives proper
assistance to quality assurance officer for maintaining quality of the final
product. Those assistants are also responsible for monitoring the environment of
the manufacturing process because factors not directly involved with the
process may affects it efficiency and the quality and safety of the final product.
These responsibilities include

Monitoring action taken to prevent infestation of the processing plant by

insects, birds and animals

Accessing the effectiveness of cleaning and sanitizing programmes

Determining that staffs are clean, in good health and dressed in appropriate
garments

Ensuring that storage areas are clean and tidy and have appropriate
temperatures and humidity

Determining that waste disposal systems are operating satisfactorily

The company takes every care from the selection of raw material to the final
product. The major characteristic of the product is quality. Malabar Fruit
Products Company ensures the quality and hygiene of the products. The
qualified professionals of the company analyse all the quality parameters during
production are constantly monitored to ensure that the final product is produced
with desired quality. The company maintains highest quality standards to meet
the requirements of the customers in national and international markets.
 CHAPTER 4

SWOT ANALYSIS
The main strength of the Malabar Fruit Products is headed with good marketing
network. That is company’s area sales managers are in direct contact with state
wise and regional distributors, this will lead to get more business. High quality
machineries, imported from developed nations are main backbone of Malabar
Fruit Products. Pineapple is mainly grown in middle Kerala. As a blessing of
god the main place is Vazhakulam and the factory is also located at
Vazhakulam. Moreover the company is having a dedicated group of staffs. Like
the two sides of a coin, there are some weaknesses also. Lack of R & D lab
leads to the shortage of new products and new techniques of products. The
general public is not bothered about the brand name of the product which will
lead the public in seek of low quality products. Advertisement costs are very
high and the company is forced to limit advertisement. Now the general public
is looking forward to new varieties of fruits in spite of other heavy food. Fruit
products are having vast demand all over the world. This will lead the company
to seek new opportunities. At present similar products are imported from other
countries at less cost. Kerala is mainly depending upon monsoon. Hence at off-
season the raw materials have to be paid at extreme. Moreover the customers
are always looking forward to new taste and their wishes are also always
changing.
 Strengths
Extensive marketing network of Malabar Fruit Products Company.
Imported high quality machineries produce super quality products at
less cost.
Having the factory in the middles of Kerala’s own pineapple market.
Malabar Fruit Products Company has built up a strong customer base
through its quality products.
Advanced machineries.
 Dedicated employees of the organization.
Good Customer Relations: Maintaining good relationship with
customers is one of the major function of ever firm.
Good Fire & Safety measures to avoid accidents.
 Weakness
Absence of good R & D lab is a limitation for Malabar Fruit Products
Company.
Motivation level of workers is found to be low.
Less brand awareness among public.
Lack of effective advertisement.
 Opportunities
Boom in the fruit products industry.
Innovate and bring out new products to meet new needs.
Wide market all over the world.
Adding more countries to its export list.
Wide consumption of fruits.
 Threats
High competition.
High quality products from other countries.
High cost of fruits in the off season.
Change consumer’s preference and taste.
 CHAPTER 5

6.1 FINDINGS
During the organization study at Malabar Fruit Products Company it was
possible to observe a lot of things. Organizational study helped to familiarize
with different functions and the organizational structure also. This study helped
to know about the different departments of the company and also the various
functions. The company is involved in lot of employee welfare activities. For
the success of an organization winning the confidence of the employees is an
essential factor. Advertisements help in developing a favourable consumer
attitude towards the product. Malabar Fruit Products Company also has realised
the importance of advertisements and is spending a lot of money in this field.
Also the company gives lot of importance to sales promotion activities. Due to
this study, it was possible to observe the overall performance and the
functioning of the company
6.2 SUGGESTIONS
 The study reveals that the awareness of the brand exists but more
information has to be revealed about the different brands of MALABAR
FOOD PRODUCT available in the market.
 Customers demanded for small quantity packets. So if possible
MALABAR FOOD PRODUCT should think of it.
 Majority of the customers think advertisement plays an important role, so
more investments are needed in that area.
 Introduction of a brand ambassador can be an effective method for
advertising the products to increase the sale.
 Credit facilities should me introduced
6.3 CONCLUSION
The organizational study conducted at Malabar Fruit Products Company, the
manufactures of Fruitoman’s brand food product was very helpful in studying
the functioning of various departments, through proper communication and
interaction with the personnel. This study was helpful to know that the company
has a good organization structure and an effective management system. Also the
company has a good position in the fruit products industry.