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1INTRODUCTION

An organizational study is a comprehensive examination and analysis of an

organization's structure, processes, and functioning. It involves studying various
aspects of an organization, such as its mission, goals, strategies, culture,
management practices, communication systems, and performance. The

primary purpose of an organizational study is to gain a deep understanding of how

an organization operates and to identify areas for improvement or optimization. An
organization is a framework for the job structure and responsibilities required of
employees to perform variety of functions in order to achieve the business
objectives of the organization. Management tries to combine various business
activities to achieve the goals set before them. The study of organization is the
systematic study and careful application of the information on how individuals and
groups work within the organization. The Structural Study includes the study of
organizations from a multidisciplinary approach, as well as the level of analysis.
Organizational studies cover a wide range of disciplines dealing with different
organizational structures. Changes in the organization are the basis of the study.
historical approaches and theories have been incorporated into the study to show the
relationship between traditional, existing and future organizational structures,
practices, and processes.

Organizational study gives the opportunity to interact with the people working in
the organization to internalize their good qualities. This study will helpful not only
for the trainee but also for anybody going through this report will get a clear picture
about organization. The main purpose of organizational studies is to provide a
complete understanding of the ethics, culture, the environment, psychology, ideas,
organizational learning for managers and an understanding of the functioning of the
various departmental functions over a period of time and organizational concept. It
also enables us to assess issues and problems in the organization and offer
suggestions for resolving these issues that will help future managers to address the
challenges ahead. It gives students the opportunity to know, see, read, collect and
analyze nature and purpose.

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 1.2 OBJECTIVES OF THE STUDY

The organizational study was done at HARRISONS MALAYALAM LIMITED,

Willington Island to achieve the following objectives.

PRIMARY OBJECTIVES

 To gain a comprehensive understanding of how an organization functions and

operates.

SECONDARY OBJECTIVES

 To study the organization structure of the company.

 To get industrial exposure and experience.
 To know about the different products and services of the company.
 To familiarize with the organizational structure.
 To know the strengths, weaknesses, opportunities and threats to the organization
based on the study.

1.3 SCOPE OF THE STUDY

The organizational study conducted at HARRISONS MALAYALAM LIMITED
provides an in-depth examination of the company's entire operations. It aims to
explore and analyze the functions of various departments within the organization.
The study encompasses a comprehensive understanding of the policies and strategies
adopted by these departments to align with and support the organizational objectives.
By exploring into the different departments, the study sheds light on how the
company operates in practical terms. It offers valuable insights into the challenges
and constraints faced by managers as they navigate the complexities of putting
theory into practice. This aspect of the study allows for a realistic assessment of the
organization's functioning and the practical implications of management decisions.
The study also examines the organizational structure of HARRISONS
MALAYALAM LIMITED. Understanding the structure is crucial in comprehending
the hierarchical relationships, reporting lines, and decision-making processes within

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the company. It provides a framework for understanding the flow of authority,
responsibility, and communication across various levels of the organization.

1.4METHDOLOGY OF THE STUDY

SOURCES OF DATA
Sources of data refer to the places or means through which researchers collect
information or gather data for their study. These sources can vary depending on the
nature of the research and the specific requirements of the study. Data collection
method is divided into two. They are primary data and secondary data. Primary data
is original data that is obtained through first-hand investigation. But the Secondary
data is the data collected from their official websites and any published source of
data.

PRIMARY DATA COLLECTION

The primary data is collected directly through the employees, department heads and
from the student industry guide. The method of data collection is through observation
and direct interview.

SECONDARY DATA COLLECTION

The secondary data is collected from journals, company websites and annual reports.

1.5LIMITATIONS OF THE STUDY

 An in-depth study of the company could not be carried out due to the shortage of
time and current data.
 As company officials could not disclose functional matters, pertaining to some
areas which could not be studied extensively.
 The findings are based on the facts received from the discussion.

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2.1 HISTORY OF TEA INDUSTRY
The tea industry has a rich and fascinating history that spans thousands of years. It all
began in ancient China around 2737 BCE when, according to legend, Emperor Shen
Nong discovered tea. Initially consumed for its medicinal properties, tea quickly
gained popularity and became an integral part of Chinese culture.During the Tang
Dynasty (618-907 CE), tea cultivation and trade flourished. This period witnessed
advancements in tea preparation techniques, such as powdered tea and the use of tea
leaves steeped in hot water. Tea houses became popular social gathering places
where people could enjoy tea and engage in intellectual discussions.Tea gradually
spread to neighboring countries like Japan and Korea, influencing their unique tea
cultures. In Japan, tea became an important part of Zen Buddhism, leading to the
development of the famous Japanese tea ceremony. In Korea, tea was enjoyed for its
health benefits and became an important aspect of daily life.

In the 16th century, European traders, including the Portuguese and the Dutch, began
importing tea from Asia. The British East India Company played a pivotal role in
popularizing tea in Europe during the 17th and 18th centuries. As demand grew, the
British established tea plantations in their colonies, such as India and Sri Lanka
(formerly Ceylon). India, in particular, became a major tea-producing country thanks
to the efforts of the British who introduced tea cultivation there.The 19th century
witnessed significant events that impacted the tea industry. The Opium Wars in
China opened up trade routes, leading to increased tea exports to the West.
Meanwhile, the industrial revolution brought technological advancements in tea
processing and packaging, revolutionizing the industry. These innovations allowed
for large-scale production and wider distribution of tea. During the 20th century, tea
production expanded globally. Countries like Kenya and Indonesia emerged as
significant tea producers, challenging the dominance of traditional tea-growing
regions. The introduction of iced tea and ready-to-drink tea beverages further
diversified the tea market, catering to different consumer preferences.

Today, tea is one of the most widely consumed beverages worldwide. It comes in a

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vast array of varieties, flavors, and blends, reflecting the diverse cultures and
growing regions where tea is cultivated. From traditional black teas to green teas,
oolongs, white teas, and herbal infusions, there is a tea to suit every taste and
occasion. The tea industry continues to evolve, driven by changing consumer
demands and a growing emphasis on sustainability. Organic and fair-trade teas have
gained popularity, reflecting consumers' desire for ethical and environmentally
friendly products. Innovative tea products, such as match, functional teas, and tea-
infused beverages are also gaining traction.

The tea industry has a captivating history that spans millennia. From its origins in
ancient China to its global presence today, tea has captured the hearts and taste buds
of people around the world. With its rich cultural heritage and continued innovation,
the tea industry remains vibrant and poised for further growth in the future.

2.2 HISTORY OF RUBBER INDUSTRY

The history of the rubber industry is a captivating tale of discovery, innovation, and
industrialization. Rubber, derived from the latex sap of certain trees, was initially
utilized by indigenous cultures in Central and South America for centuries before
European explorers encountered it during their voyages to the New World. However,
it was in the 19th century that the rubber industry truly began to take shape. In 1839,
Charles Goodyear made a groundbreaking discovery with the process of
vulcanization. This involved treating rubber with sulfur and heat, resulting in a
material that was more durable, elastic, and resistant to temperature changes.
Vulcanized rubber opened up new possibilities and paved the way for the
commercialization of rubber products.

During the late 19th century, rubber plantations started to emerge in countries such
as Brazil, British Malaya (now Malaysia), and the Congo Free State (now the
Democratic Republic of Congo). These plantations were established to meet the
growing demand for rubber from industrialized nations. Rubber became a valuable
commodity, with applications in various industries.The demand for rubber

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skyrocketed with the rise of the automobile industry in the early 20th century.
Rubber became an essential component for tire manufacturing, driving the growth of
the rubber industry. This led to a rubber boom, with plantations expanding to meet
the increasing demand. However, the rubber industry faced a significant challenge
during World War II. With access to traditional rubber plantations disrupted, the
need for alternative sources became imperative. This drove significant advancements
in the development of synthetic rubber, which could be produced from petroleum-
based chemicals. Synthetic rubber proved to be a viable substitute and played a
crucial role in supporting the war effort.

Today, the rubber industry remains vital and continues to thrive. Rubber is used in a
wide range of applications, including automotive components, construction
materials, manufacturing equipment, and consumer goods. Technological
advancements and innovations have further expanded the possibilities, with
specialized rubbers developed to meet specific requirements such as high
temperature resistance, oil resistance, and environmental sustainability. The rubber
industry has come a long way from its humble beginnings, transforming into a global
enterprise that supports various sectors of the economy. With ongoing research and
development, the industry continues to explore new ways to improve the properties
and applications of rubber, ensuring its relevance and significance in the modern
world.

2.3 INTRODUCTION
Companies in this industry produce tea and rubber. Tea, often referred to as the
second most widely consumed beverage after water, holds a special place in the
hearts and cups of people from diverse cultures around the world. It is deeply rooted
in traditions, rituals, and social customs. Whether it's the elaborate tea ceremonies of
Japan, the afternoon tea culture in Britain, or the aromatic chai enjoyed in India, tea
consumption transcends borders and is prevalent in countries across Europe, Asia,
Africa, the Americas, and the Middle East. Its versatility and wide range of flavors,
from black and green teas to herbal infusions, cater to varying preferences and offer a

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multitude of health benefits. The global tea market continues to expand as consumers
seek new and innovative tea products, contributing to the growth and dynamism of
the industry.

On the other hand, the worldwide rubber manufacturing market is a vast and
dynamic industry that is influenced by various factors. Technological advancements
play a crucial role, driving innovations in rubber processing, product development,
and sustainability. Consumer preferences and market trends also shape the demand
for rubber products. Industries such as automotive, construction, healthcare, and
consumer goods heavily rely on rubber components. The automotive sector, for
instance, requires rubber tires, seals, gaskets, and other rubber-based parts. The
construction industry utilizes rubber in various applications, including roofing
materials, insulation, and sealants. In the healthcare sector, rubber is used in medical
equipment, gloves, and other healthcare products.

The growing global population, urbanization, and economic development in

emerging markets contribute to the increasing demand for rubber products. As
economies expand and infrastructure projects advance, the need for rubber in
construction and transportation sectors rises. Furthermore, advancements in
healthcare technology and the increasing focus on hygiene and safety drive the
demand for rubber-based medical equipment and personal protective equipment.

2.4 GLOBAL SCENARIO

2.4.1 The global scenario of tea industry:

The global tea industry is experiencing significant growth and evolving consumer
trends, making it a dynamic and thriving sector in the global market. Tea, known for
its rich history and cultural significance, is now gaining popularity as a healthy and
versatile beverage, driving the global demand for tea products.

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Asia, particularly China and India, has traditionally been at the forefront of tea
production and consumption. However, the global tea market has expanded beyond
its traditional roots, with increasing tea consumption observed in regions such as
Europe, North America, and the Middle East. This growth can be attributed to
several factors. One of the key drivers of the global tea industry is the increasing
awareness of the health benefits associated with tea consumption. Tea is known for
its high content of antioxidants, polyphenols, and other beneficial compounds that
promote overall well-being. As consumers become more health-conscious, there is a
growing demand for natural and organic tea varieties that offer specific health
benefits, such as green tea, herbal teas, and specialty blends. The rising popularity of
tea as a lifestyle beverage has contributed to its global growth. Tea is not only
consumed for its taste and health benefits but has become a part of social gatherings,
relaxation rituals, and afternoon traditions. This shift in consumer behavior has led to
the emergence of tea cafes, tea lounges, and specialty tea shops, providing unique
experiences and introducing consumers to a wider range of tea flavors and blends.
The demand for specialty and premium teas has been on the rise. Specialty teas
include rare and unique varieties like white tea, oolong tea, and matcha, which offer
distinct flavors and aromas. These teas are often sourced from specific regions or
estates and are carefully processed to maintain their quality. The demand for
premium teas reflects the consumers' desire for a more elevated and indulgent tea-
drinking experience.
In recent years, there has been a surge in the popularity of ready-to-drink (RTD) tea
beverages. RTD teas offer convenience and on-the-go consumption, attracting
consumers seeking refreshing and healthier alternatives to carbonated soft drinks and
other sugary beverages. The availability of a wide range of flavors, including fruit-
infused teas, has further fueled the growth of the RTD tea segment.The tea industry
is also influenced by sustainability and ethical practices. Consumers are increasingly
concerned about the environmental impact of tea production and are demanding
transparency and accountability from tea companies. As a result, there is a growing
emphasis on sustainable sourcing, fair trade practices, and organic certifications in
the tea industry. The global tea market is highly competitive, with numerous

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multinational and regional players vying for market share. To stay ahead, companies
are focusing on product innovation, expanding their product portfolios, and investing
in marketing and branding efforts. They are also leveraging e-commerce platforms to
reach a wider consumer base and capitalize on the growing trend of online tea
purchases.
Looking ahead, the global tea industry is expected to continue its upward trajectory.
The market is projected to witness steady growth, driven by factors such as
increasing health consciousness, evolving consumer preferences, and the
introduction of new tea varieties and blends. As tea continues to capture the taste
buds and hearts of consumers worldwide, the industry will continue to adapt and
innovate to meet the ever-changing demands of tea enthusiasts
Tea is one of the most popular and lowest-cost beverages in the world, and it is
widely consumed. Tea is considered one of the major components of the global
beverage market due to its increasing demand. One of the major factors driving
market growth around the world is the growing number of tea lounges, cafeterias, tea
shops or stalls, cafes, restaurants, quick serving restaurant (QSR) chains, and hotels.
These lounges allow consumers to try a wide range of handpicked teas from around
the world. Also, several tea brands are collaborating with such companies to
implement their endorsement programs. A case study is the increasing amount of tea
lounges, cafeterias, tea shops or stalls, cafes, restaurants, quick serving restaurant
(QSR) chains, and hotels, represents one of the major factors driving market growth
worldwide. These lounges allow consumers to try a wide range of handpicked teas
from around the world. Also, several tea brands are working with such companies to
implement their endorsement programs. Before the COVID-19 pandemic, the global
tea industry was growing steadily, driven by increasing demand for specialty and
premium teas, as well as growing knowledge of tea's health benefits.
However, the pandemic disrupted supply chains and reduced demand, mostly in the
foodservice and hospitality fields.

The global tea market size reached US$ 23.2 Billion in 2022. Looking forward,
IMARC Group expects the market to reach US$ 31.6 Billion by 2028, exhibiting a

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growth rate (CAGR) of 5.4% during 2023-2028. Originating in China, tea currently
represents one of the widely consumed beverages in the world.

2.4.2 The global scenario of rubber industry:

The global rubber industry plays a critical role in various sectors and is an essential
component of numerous products used worldwide. From automotive and
construction to healthcare and consumer goods, rubber is a versatile material with
diverse applications, making the rubber industry a significant player in the global
market. One of the key factors driving the global rubber industry is the growth in
end-use industries. The automotive sector, in particular, has a substantial impact on
the demand for rubber products. Rubber is a vital component in the production of
tires, belts, hoses, gaskets, and other automotive parts. As the global automotive
industry expands and vehicle production increases, the demand for rubber rises
proportionately. The construction industry also relies heavily on rubber for
applications such as roofing materials, insulation, sealants, and flooring, driving the
demand for rubber products. Additionally, the healthcare sector relies on rubber for
medical equipment, gloves, gaskets, and various other healthcare products,
contributing to the growth of the rubber industry. Technological advancements and
innovations have further shaped the global rubber industry. The development of
synthetic rubber has been a significant milestone. Synthetic rubber, produced through
chemical processes, offers properties similar to natural rubber and is used as a
substitute when natural rubber supply is limited or when specific properties are
required. The advancement of rubber processing techniques and machinery has also
contributed to improved efficiency and product quality in the industry.
Manufacturers are continually exploring new ways to enhance rubber properties,
such as strength, durability, and elasticity, to meet the evolving demands of different
industries.

Global trade and market dynamics also play a crucial role in the rubber industry. The
global rubber market is influenced by factors such as supply and demand dynamics,
fluctuations in raw material prices, and government policies. Rubber production is

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concentrated in regions such as Southeast Asia, particularly Thailand, Indonesia, and
Malaysia, where natural rubber plantations are abundant. These countries contribute
significantly to the global rubber supply. However, political instability, climate-
related challenges, and diseases affecting rubber trees can impact the global rubber
market. As a result, fluctuations in rubber prices and supply occur, influencing the
profitability and competitiveness of rubber manufacturers. Sustainability and
environmental concerns have gained prominence in the global rubber industry.
Rubber plantations have faced scrutiny for issues related to deforestation, land use,
and social responsibility. As a response, companies and stakeholders are increasingly
focused on sustainable rubber sourcing, responsible land management, and fair labor
practices. Certification programs and initiatives, such as the Forest Stewardship
Council (FSC) and the Sustainable Natural Rubber Initiative (SNR-i), aim to
promote sustainable practices and improve the social and environmental impact of
rubber production.
The global rubber industry is poised for growth and development due to its
significance across multiple sectors. As economies expand, infrastructure projects
advance, and consumer demands evolve, the demand for rubber products continues
to rise. The industry's ability to innovate, adapt to changing market dynamics, and
implement sustainable practices will play a crucial role in shaping its future. The
global industrial rubber market size was valued at $29.8 billion in 2018 and is
projected to reach $44.6 billion by 2026, growing at a CAGR of 5.2% from 2019 to
2026. Industrial rubber market is a natural polymer of Isoprene founded in the latex
sap of various plants.

2.5 INDIAN SCENARIO

2.5.1 Indian scenario of tea industry:

The Indian tea industry holds a prominent position globally, being one of the largest
tea producers and consumers in the world. Tea has a rich history in India, with its
cultivation dating back to the early 19th century when the British introduced
commercial tea plantations in the northeastern regions of Assam and Darjeeling.

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Since then, the Indian tea industry has grown significantly, contributing to the
country's economy, employment, and cultural heritage.

India's diverse geographical and climatic conditions provide ideal conditions for tea
cultivation. The country is known for producing a wide range of teas, including black
tea, green tea, white tea, oolong tea, and specialty teas. Assam and Darjeeling are
particularly renowned for their unique tea flavors and aromas, making them coveted
among tea enthusiasts worldwide. Assam tea is known for its robust, malty flavor,
while Darjeeling tea offers a delicate and muscatel character. The Indian tea industry
is primarily concentrated in the northeastern states of Assam, West Bengal, and
Tripura, which account for a significant portion of the country's tea production.
Assam alone contributes around 50% of India's total tea output. However, tea is
cultivated in several other regions, including the Nilgiris in southern India and the
Kangra Valley in the north, each offering distinct tea characteristics. Tea plantations
in India cover vast areas of land and provide employment to millions of workers,
making it a crucial source of livelihood for rural communities. Tea cultivation
requires labor-intensive activities, such as plucking the tender tea leaves by hand,
ensuring optimum quality and freshness. Many tea estates in India also promote
sustainable practices, social welfare programs, and housing facilities for workers,
emphasizing their commitment to ethical and responsible tea production.

The Indian tea industry faces various challenges, including fluctuating weather
patterns, pests and diseases, and labor-related issues. Climate change poses a
significant threat to tea cultivation, with unpredictable rainfall and temperature
patterns impacting crop yields and quality. Additionally, labor shortages and wage
disputes have been a recurring concern in certain regions, affecting the overall
productivity and profitability of tea estates. Despite these challenges, the Indian tea
industry continues to thrive and innovate. The industry has embraced technology and
modern agricultural practices to improve productivity and sustainability. Tea
producers are increasingly focusing on organic and biodynamic cultivation methods,
offering a wide range of organic tea options to cater to the growing demand for

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natural and eco-friendly products.

The domestic consumption of tea in India is significant, with tea being an integral
part of Indian culture and daily life. Chai, a spiced milk tea preparation, holds a
special place in Indian households and is consumed throughout the day. In recent
years, there has also been a rise in the consumption of specialty teas and herbal
infusions, driven by health-conscious consumers seeking unique flavors and health
benefits.

The Indian tea industry also actively participates in the global market, exporting tea
to countries around the world. India is a major exporter of tea, catering to diverse
international markets and meeting the preferences of tea connoisseurs globally.
Indian tea is highly regarded for its quality, aroma, and distinct flavors, making it a
sought-after commodity. The Indian tea industry holds a significant position both
domestically and internationally. With its rich heritage, diverse tea varieties, and
commitment to sustainability, the Indian tea industry continues to contribute to the
country's economy while preserving its cultural legacy. Despite challenges, the
industry's resilience and innovation ensure its continued growth and success in the
global tea market. India attained the highest exports of tea in 2017 in almost four and
a half decade. However, the annual growth of the exports from the country was only
moderate due to the high domestic consumption. Almost 80% of the total output in
India is consumed domestically. The per capita consumption of the beverage in the
country has witnessed a significant increase in the last decade.

2.5.2 Indian scenario of rubber industry

The rubber industry in India plays a significant role in the country's economy and has
witnessed substantial growth over the years. India is one of the largest producers and
consumers of natural rubber globally, with a diverse range of rubber-based products
being manufactured and exported. The Indian rubber industry is primarily
concentrated in the states of Kerala, Tamil Nadu, and Karnataka, where rubber
plantations are abundant. These states possess favorable climatic conditions for

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rubber cultivation, with Kerala being the largest rubber-producing state in the
country. The region's tropical climate, adequate rainfall, and fertile soil contribute to
the high-quality rubber produced in India.
The Indian rubber industry is characterized by a mix of small-scale and large-scale
rubber manufacturers, including rubber plantations, processing units, and rubber
product manufacturers. Rubber plantations cover extensive areas of land, providing
employment opportunities to a significant number of workers, particularly in rural
areas. The industry is a crucial source of livelihood for many small-scale farmers and
contributes to rural development. The demand for rubber in India is driven by
various sectors, including automotive, construction, manufacturing, healthcare, and
consumer goods. The automotive sector is the largest consumer of rubber in India,
with tires being the primary application. As the automobile industry continues to
grow, the demand for rubber-based automotive components such as hoses, belts,
gaskets, and seals also increases. The construction industry is another major
consumer of rubber products, utilizing rubber-based materials for applications such
as roofing, flooring, insulation, and sealants.

In recent years, the Indian rubber industry has focused on diversifying its product
range and improving product quality. Manufacturers are investing in research and
development to develop new rubber compounds, enhance manufacturing processes,
and cater to specialized requirements. The industry has also been proactive in
adopting sustainable practices, such as promoting organic rubber cultivation and
reducing environmental impact. However, the Indian rubber industry faces certain
challenges that impact its growth potential. Fluctuations in global rubber prices,
dependency on natural rubber imports to meet domestic demand, and competition
from synthetic rubber alternatives are some of the key challenges. Additionally,
issues related to productivity, technological advancements, and compliance with
quality standards need to be addressed to ensure the industry's competitiveness on the
global stage. Government initiatives and policies play a crucial role in supporting the
growth of the rubber industry in India. The Rubber Board of India, under the
Ministry of Commerce and Industry, formulates and implements policies and

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programs to promote sustainable rubber cultivation, improve productivity, and
enhance the competitiveness of Indian rubber in the global market.

The Indian rubber industry has witnessed significant growth and is poised for further
development. With a strong domestic market and increasing global demand, the
industry presents opportunities for innovation, diversification, and sustainable
practices. By addressing challenges, fostering research and development, and
adopting efficient manufacturing processes, the Indian rubber industry can maintain
its competitiveness and contribute to the country's economic growth. The country's
exports of rubber and rubber products have been growing steadily over the years,
with major markets including the US, Europe, and Japan. Kerala is India’s top
producer of natural rubber. Kottayam, Kollam, Ernakulam, and Kozhikode generate
nearly all of the state’s rubber. Rubber output in India is between 6 and 7 lakh tonnes
per year, amounting to Rs. 3000 crores.

2.6 STATE SCENARIO

2.6.1 State scenario of tea industry

The state of Kerala in India holds a significant position in the country's tea industry.
Known for its unique geographical and climatic conditions, Kerala has a long-
standing tradition of tea cultivation and is renowned for producing high-quality teas.
The tea estates in Kerala are nestled amidst the picturesque landscapes of the
Western Ghats, providing an ideal environment for tea plantations.

The tea industry in Kerala is primarily concentrated in the regions of Munnar,

Wayanad, and Nilgiris. Munnar, situated in the Idukki district, is one of the most
prominent tea-growing areas in the state. The region's cool climate, misty hills, and
rich soil contribute to the distinctive flavors and aromas of Munnar tea. Wayanad,
located in the northern part of Kerala, is known for its organic tea plantations and
eco-friendly cultivation practices. The Nilgiris region, which extends into Kerala, is
renowned for its high-quality black teas.

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Kerala tea is predominantly of the orthodox variety, characterized by its handcrafted
production methods and distinctive leaf appearance. The state produces a range of
teas, including black tea, green tea, white tea, and specialty teas. The flavors of
Kerala teas are influenced by the region's unique climate, elevation, and soil
composition, resulting in teas with a distinctive taste profile. The tea industry in
Kerala plays a crucial role in the state's economy and provides employment
opportunities to a significant number of people, particularly in rural areas. Tea
estates in Kerala employ a large workforce, including tea pluckers, skilled tea
processors, and administrative staff. The industry contributes to the socio-economic
development of local communities, supporting livelihoods and fostering economic
stability.Kerala's tea industry also places a strong emphasis on sustainable practices
and environmental conservation. Many tea estates in the state have adopted organic
cultivation methods, eschewing the use of synthetic fertilizers and pesticides. This
commitment to organic farming ensures the production of healthier teas and protects
the surrounding ecosystem. The tourism industry in Kerala further complements the
tea industry, as tea plantations serve as popular tourist destinations. Visitors have the
opportunity to witness tea plucking and processing, learn about the tea-making
process, and savor freshly brewed cups of tea amidst the serene tea gardens. Tea
tourism has emerged as a significant attraction, attracting domestic and international
tourists and boosting the local economy.The Kerala government has taken initiatives
to support and promote the tea industry in the state. The Tea Board of India, along
with various government agencies, provides technical support, financial assistance,
and training programs to tea growers and manufacturers. These efforts aim to
enhance productivity, improve quality standards, and explore new market
opportunities for Kerala teas.

2.6.2 State scenario in rubber industry

The state of Kerala in India has a significant presence in the rubber industry,
contributing to the country's overall rubber production. Kerala's favorable climatic
conditions, abundant rainfall, and fertile soil make it an ideal region for rubber

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cultivation. Rubber plantations in Kerala are primarily concentrated in the districts of
Kottayam, Kollam, and Pathanamthitta. These plantations cover vast areas of land
and provide employment opportunities to a large number of people, particularly in
rural areas. The rubber industry in Kerala plays a crucial role in the state's economy,
contributing to income generation and rural development. Kerala is known for its
production of natural rubber, which is derived from the latex of the rubber tree
(Hevea brasiliensis). The latex is extracted through a process called tapping, where a
small incision is made in the bark of the tree, allowing the latex to flow into
collecting cups. The latex is then processed into various rubber products through
techniques such as smoking, coagulation, and drying.

The rubber industry in Kerala focuses on the production of high-quality natural

rubber, which finds applications in various sectors. The automotive industry is one of
the largest consumers of rubber, utilizing it for manufacturing tires, belts, hoses, and
other components. The construction industry also relies on rubber for applications
such as sealing materials, flooring, and insulation. Additionally, rubber is used in the
manufacturing of industrial goods, consumer products, and healthcare items.Kerala's
rubber industry has been proactive in adopting sustainable practices and promoting
organic cultivation. Many rubber plantations in the state have received organic
certification, ensuring that the rubber produced is free from chemical inputs. Organic
rubber cultivation enhances environmental sustainability, promotes soil health, and
produces rubber that meets the growing demand for organic and eco-friendly
products.
The government of Kerala has implemented several initiatives to support and
enhance the rubber industry in the state. The Rubber Board of India, under the
Ministry of Commerce and Industry, provides technical support, research and
development, and financial assistance to rubber growers and manufacturers. The
government also offers subsidies and incentives to promote sustainable cultivation
practices and improve productivity. The rubber industry in Kerala faces certain
challenges that need to be addressed for sustained growth. Fluctuations in rubber
prices, dependency on imported rubber for meeting domestic demand, and the threat

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of diseases and pests affecting rubber trees are some of the key challenges.
Additionally, the industry needs to focus on improving productivity, adopting
advanced manufacturing technologies, and enhancing value addition to remain
competitive in the global market. The rubber industry in Kerala is an integral part of
the state's economy, providing employment opportunities and contributing to rural
development. With its favorable climatic conditions and emphasis on sustainable
practices, Kerala continues to be a significant player in the production of natural
rubber. By addressing challenges and leveraging technological advancements, the
state's rubber industry can maintain its position and contribute to India's overall
rubber production.

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3.1 ABOUT THE COMPANY
Harrisons Malayalam Limited known as (HML) is the most successful integrated
agricultural operation in South India. One of the oldest – with a history that goes
back over a hundred and fifty years – it has been a pioneer in corporate farming and
has, over this period, established and run plantations for Tea, Rubber, Cocoa, Coffee,
and a wide variety of Spices. The company’s principle products are rubber, tea and
pineapple, which are growing on 7,400 ha, 6,000ha and 1000 hectares of own
acreage, respectively. HML is South India’s largest agriculture enterprise, producing
roughly 9,000 tonnes of rubber, 2,000 tonness of tea and 25,000 tonnes of pineapple.
The Company was incorporated on 05.01. 1978 as a public limited company.

The operations of the company spread over 20 Estates, 8 rubber factories and 12 tea
factories along with a number of blending and processing units in three southern
states of Kerala, Tamil Nadu and Karnataka. The company also operates a full-
fledged tissue culture laboratory for its own use as well as for production and sale.
The company is a part of RSPG Group one of the largest and well-respected
industrial groups in India which is having a turnover of Rs. 307.08 cr.
The company is listed on the National, Bombay and Cochin stock exchanges, HML
has a paid up capital of Rs.18.45 cr.

HISTORY
Harrisons Malayalam Limited is a well-established company with a rich history in
the agricultural sector, particularly in the cultivation and processing of tea, rubber,
and other crops in India. The company traces its roots back to 1874 when it was
initially founded as the Harrison & Crosfield Group in England. It later expanded its
operations to India and ventured into tea and rubber cultivation in the southern state
of Kerala. In 1978, the company merged with two other firms, Joonas Enterprises
and Harrisons & Crossfield (India) Limited, to form Harrisons Malayalam Limited.
Over the years, Harrisons Malayalam Limited has played a significant role in the
development of the tea and rubber industries in Kerala, managing vast plantations
and adopting innovative agricultural practices. The company has continually evolved

19
and diversified its operations, expanding into areas such as real estate, tourism, and
hydroelectric power generation. Despite facing challenges such as fluctuating
commodity prices and changing market dynamics, Harrisons Malayalam Limited has
remained a key player in the agricultural and business landscape of Kerala, making a
significant contribution to the state's economy and the overall growth of the sector.

VISION
To be a dynamic conglomerate driven by sustainable growth, efficiency and
innovation

CORE VALUES
S – Sustainability
Be equally responsible for people, planet, profits

E- Execution Excellence
Strive to be the best in everything we do

A – Agility
Move ahead of time quickly

R – Risk Taking
Dare to go beyond

C – Customer First
Keep customer at the core of every action

C – Credibility
Instill trust, confidence and accountability with our actions

H – Humaneness
Be fair, respectful and sensitive

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QUALITY POLICY

HML provides quality policies mainly on following areas

 They periodically check the quality in production of tea and rubber.
 Packaging process also include quality procedures such as inspection of
packages.
 The company also provides packing under buyer’s requirement.
 The company has got registration from Tea Board of India and Rubber Board of
India for domestic trading and exports.

PACKING
 The bulk tea is packed in paper sacks without losing its freshness and aroma.
 Packaging workers are inspected before they engage in packaging.
 Packaging materials supplied by reliable suppliers.

QUALITY CERTIFICATION

 ISO 9001:2015 Certification

ISO 9001:2015 is an international standard for quality management systems
(QMS) developed by the International Organization for Standardization (ISO).
The certification signifies that an organization has implemented and maintains a
QMS that meets the requirements outlined in ISO 9001:2015.
The ISO 9001:2015 standard focuses on various aspects of quality management,
including customer satisfaction, process efficiency, continuous improvement, and
the systematic approach to managing quality. It provides a framework for
organizations to establish processes and procedures that ensure consistent
delivery of products or services that meet customer expectations.
The certification is globally recognized and signifies an organization's

21
 commitment to delivering quality products or services, customer satisfaction, and
continuous improvement. It can enhance an organization's reputation, increase
customer confidence, and open doors to new business opportunities.

 ISO 14001:2015 Certification

ISO 14001:2015 is an internationally recognized standard for environmental
management systems. It provides a framework for organizations to manage and
improve their environmental performance, reduce their environmental impact,
and comply with applicable environmental regulations.

ISO 14001:2015 also emphasizes the importance of stakeholder engagement and

communication. Organizations are encouraged to involve employees, suppliers,
customers, and the local community in their environmental management efforts.
Regular communication and consultation with stakeholders help to foster a
culture of environmental responsibility and improve transparency.

One of the strengths of ISO 14001:2015 is its emphasis on continual

improvement. Organizations are required to monitor and measure their
environmental performance, conduct periodic audits, and review their EMS to
ensure its effectiveness. By setting targets, tracking progress, and learning from
past experiences, organizations can continuously enhance their environmental
performance and strive for sustainability.

 ISO 9001 Certification

ISO 9001 is a globally recognized standard for quality management systems
(QMS) that helps organizations meet customer expectations, improve customer
satisfaction, and continuously enhance their internal processes.
ISO 9001 provides a systematic approach to quality management, enabling
organizations to identify, understand, and meet customer requirements
consistently. The standard sets out criteria for establishing a QMS that focuses on
customer satisfaction, process efficiency, and continual improvement. By

22
 implementing ISO 9001, organizations can enhance their overall quality
performance, increase operational efficiency, and gain a competitive edge in the
market.
Implementing ISO 9001 involves several essential steps. Organizations need to
define their quality policy and objectives, conduct a thorough analysis of their
processes, and identify areas for improvement. They establish and document
procedures to ensure consistent quality throughout their operations, from product
development and production to service delivery and customer support.

AWARDS & ACHIEVEMENTS OF THE COMPANY

 The Golden Leaf Indian Tea Award (TGLIA), organized by the Tea Board of
India in March 2007 at Kochi, for the best tea quality.
 HML was honored by the Federation of Indian Chambers of Commerce (FICCI)
with the prestigious Award for Corporate Initiative in the field of Family Welfare
in 1990-91, 1996-97, and 2000-01, in recognition of their outstanding efforts
towards the welfare of workers.
 The company has been honored with the Ethical Corporation Responsible
Business Award for its commitment to sustainable practices and responsible
business conduct.
 Harrisons Malayalam Limited has been recognized by the Indian Chamber of
Commerce for its outstanding contribution to the rubber industry and overall
business excellence.
 Harrisons Malayalam Limited has been honored with the Export Excellence
Award for its significant contributions to Indian exports, particularly in the tea
and rubber sectors.
 The company holds various ISO certifications, including ISO 9001 for quality
management, ISO 14001 for environmental management, and ISO 45001 for
occupational health and safety management.
 Harrisons Malayalam Limited has achieved Rainforest Alliance Certification,
demonstrating its adherence to sustainable farming practices and environmental
conservation.

23
 The company has received Indian Green Building Council (IGBC) certification
for its sustainable building practices and green initiatives.
 Harrisons Malayalam Limited has been awarded the Social Accountability
International (SA8000) certification, highlighting its commitment to ethical labor
practices and safe working conditions.

MAJOR COMPETITORS OF THE COMPANY

Some of the major competitors of Harrison Malayalam Limited in the tea and rubber
industry could include:
 Tata Tea Ltd
Tata Tea is one of the largest tea producers and distributors in India. It has a
significant presence in the Indian tea market and competes with HML in terms of tea
production and processing.

 Jay Shree Tea & Industries Ltd

Jay Shree Tea & Industries is another prominent tea producer in India. The company
owns several tea estates and competes with HML in the tea industry.

 AVT Natural Products Ltd

AVT Natural Products is a diversified company involved in the cultivation and
processing of various agricultural products, including tea. It operates tea estates and
competes with HML in the tea sector.

 Kannan Devan Hills Plantations Company (KDHP)

KDHP is a major player in the tea industry in India. It is known for its premium tea
brands like "Munnar Tea" and competes with HML in the tea market.

 Goodricke Group Ltd

Goodricke Group is engaged in tea plantation and production, with tea estates spread
across different regions in India. It is a significant competitor of HML in the tea

24
 industry

3.2 ORGANISATIONAL STRUCTURE

Chief Executive

Executive Chief
Director VP – Tea & HR Head Financial
Officer

Finance &
Rubber Rubber New Product Accounts
Bought Sales & Development
Operations Marketing
Manager
Operations
Manager Marketing Manager
Head Assistant
Managers
Assistant
Manager Assistant
Manager HR Warehouse Executive
Tea Sales
Management
&
JR Marketing
JR Manager
Executives Executives Deputy JR
Manager Executives
Executive JR
Executive
JR
JR
Executive
Executives

Fig:3.1 Organisation Structure

25
3.3 FUNCTIONAL AREAS

Departmentation can be defined as the process of dividing the large functional areas
of the organization into small and flexible administrative units. Division of
functional areas helps the employees to work efficiently.

MAJOR DEPARTMENTS
 Tea Marketing and Sales Department
 Rubber Marketing and Sales Department
 Human Resources Department
 Financial Department
 Warehouse Management
 Tea and Rubber Estates
 Rubber bought operations
 Commercial Department
 Estate Management
 Quality Control

3.3.1 TEA MARKETING AND SALES DEPARTMENT

Marketing is the most challenging function to be performed by every organization. It

is the process of financing and fulfilling consumer desires. In such a way that to
achieve profit to the organization and satisfy the customers in competitive economy,
it is consumer desires the success of the failure of business either buying or not
buying the product. Today, it has become necessary to study substantively to
different aspects relating to marketing process with regard to fulfilling the
expectation and needs of the consumers by the right things at the right time and at the
right price marketing department is doing the function of selling the business.

26
 Vice President

Executive

Junior Executive

Fig: 3.2 Structure of tea marketing department

DUTIES AND RESPONSIBILITIES

 Distribution channel management

Establishing and managing distribution channels, including wholesalers, retailers,
online platforms, and export markets. Developing relationships with distributors,
negotiating contracts, and ensuring optimal product placement and availability.

 Sales forecasting and planning

Conducting sales forecasting and developing sales plans to achieve revenue
targets. Monitoring sales performance, analyzing data, and making adjustments
to sales strategies as needed.

 Sales analysis and reporting

Analyzing sales data, market trends, and consumer behavior to evaluate the
effectiveness of marketing and sales strategies. Generating regular reports on
sales performance, market share, customer feedback for management review.

 Customer relationship management

Building and maintaining strong relationships with customers, tea retailers, and
key stakeholders. Providing exceptional customer service, addressing customer

27
 queries and concerns, and managing customer feedback.

 Supply chain coordination

Staying updated on industry trends, market dynamics, competitor activities, and
consumer preferences. Monitoring changes in customer demands and preferences
to adapt marketing and sales strategies accordingly.

 Export sales forecasting and planning

Tracking and analyzing export sales data, market trends, and customer behavior
to evaluate the effectiveness of marketing and sales strategies. Generating reports
on export sales performance, market share, and key performance indicators for
management review.

 Auction bidding and sales

Facilitating the bidding process during the auction, ensuring fair and transparent
proceedings. Managing bid submissions, tracking bid amounts, and announcing
winning bids. Facilitating sales transactions and coordinating with buyers for
payment and tea delivery.

 Sample preparation and cataloging

Preparing tea samples for auction, including proper packaging, labeling, and
cataloging. Ensuring accurate and detailed information about each tea lot,
including the estate, tea type, grade, and other relevant specifications.

 Post auction and logistic support

Coordinating logistics for tea delivery to buyers after the auction. Providing post-
auction support, addressing buyer queries or concerns, and managing any
necessary documentation related to the sales transactions.

 Relationship management with tea estates and buyers

Building and maintaining strong relationships with tea estates, suppliers, and

28
 buyers participating in the auction. Ensuring effective communication,
addressing concerns, and fostering long-term partnerships to facilitate future
auctions and sales.

3.3.2 RUBBER MARKETING AND SALES DEPARTMENT

The Rubber Marketing and Sales Department plays a crucial role in promoting and
selling rubber products in the market. This department is responsible for various
tasks and functions to ensure the success of rubber sales and maximize profitability.

Executive Director

Marketing Head

Assistant Manager

Junior Executives

Fig: 3.3 Structure of rubber marketing department

DUTIES AND RESPONSIBILITIES

 Pricing and quotation

Establishing pricing strategies for rubber products based on market analysis, cost
considerations, and desired profit margins. Preparing and providing accurate
quotations to customers and negotiating pricing terms when necessary.

 Customer relationship management

Building and maintaining strong relationships with existing and potential

29
 customers. Understanding customer requirements, providing excellent customer
service, addressing inquiries, and resolving issues to ensure customer
satisfaction.

 Collaborating with the production and supply chain

Collaborating with the production and supply chain departments to ensure the
availability of sufficient rubber inventory to meet customer demands. Providing
input on product specifications, quality control, and production scheduling.

 Contract negotiation
Negotiating contracts and agreements with customers, distributors, and other
business partners. Ensuring compliance with contractual obligations, managing
contract renewals, and resolving any contractual disputes.

 Order processing and fulfillment

Managing the order processing cycle, including order placement, order
confirmation, and order fulfillment. Ensuring accurate and timely order
processing, coordinating with production teams, and tracking shipments to meet
customer delivery requirements.

 Regulatory compliance
Ensuring compliance with relevant regulations, certifications, and quality
standards specific to the rubber industry. Adhering to legal requirements, safety
guidelines, and quality control measures in marketing, sales, and logistics
activities.

 Continuous improvement
Continuously monitoring and evaluating marketing and sales processes, logistics
operations, and customer feedback to identify areas for improvement.
Implementing strategies and initiatives to enhance customer satisfaction,
optimize logistics efficiency, and drive sales growth.

30
 Supply chain coordination
Collaborating with procurement and production teams to ensure an uninterrupted
supply chain for rubber products. Monitoring raw material availability,
production schedules, and inventory levels to meet customer demands and
optimize supply chain efficiency.

 Export sales forecasting and planning

Tracking and analyzing export sales data, market trends, and customer behavior
to evaluate the effectiveness of marketing and sales strategies. Generating reports
on export sales performance, market share, and key performance indicators for
management review.

 Climate impact assessment

Assessing the potential impact of climate change on the rubber industry and
incorporating this knowledge into business strategies. Monitoring climate-related
developments and evaluating their implications for rubber production, supply
chain logistics, and customer demands.

3.3.3 HUMAN RESOURCE DEPARTMENT

The Human Resource department of a company is responsible for managing and

overseeing various aspects of employee recruitment, onboarding, training,
performance management, and employee relations to support the organization’s
human capital needs. Managing employees in a business organization presents
numerous challenges and complexities. To create harmonious relationship
between employees and employer Human Resource Department is required in
each and every organization.

The Human Resource department serves as a bridge between employees and

management, striving to create a harmonious relationship by addressing

31
 employee needs and concerns while aligning them with the organization's goals
and objectives. Their strategic approach to managing human capital helps
organizations build a strong and motivated workforce, leading to increased
productivity, employee satisfaction, and overall success.

VP – Tea & HR

HR Industrial
Operations Relations

Fig: 3.4 Structure of Human Resource Department

DEPARTMENT FUNCTIONS

 Recruitment and selection

Attracting and hiring qualified candidates for job openings within the
organization. This involves job posting, resume screening, conducting interviews,
and making job offers.

 Performance management
Establishing performance goals, conducting performance evaluations, providing
feedback and coaching to employees, and recognizing and rewarding exceptional
performance.

 Industrial relations

32
 Managing employee relations matters, resolving conflicts, and promoting a
positive work environment. This includes addressing employee grievances,
conducting investigations, and implementing disciplinary actions when
necessary.

 Performance Appraisal
The HR division should frequently analyze good performance to assess
performance after an employee is hired. The method of gathering, evaluating, and
logging data regarding an employee's relative worth. Each employee's action plan
is created by the HR department based on their performance review.

 Determining wages and salaries

Wages and salaries are determined through a comprehensive evaluation of job
descriptions, considering factors such as required skills, qualifications,
experience, and level of responsibility.

 Training & Development

Employee development and training must be ongoing if productivity is to rise.
The training takes place throughout both work and free time.

 Employee welfare and motivation

The HR division is dedicated to keeping the employee incentive programmes and
health measures in place.

 Attending to employee grievances

They serve as the conduit between employees and management. The human
resources department often takes into account and addresses employee
complaints regarding the workplace

33
DUTIES AND RESPONSIBILITIES OF HR MANAGER

RECRUITMENT

The purpose of the employment and leasing policy is to obtain the best talent from its
resources to achieve the company's business objectives, primarily external
employment.

The organization's hiring process is as follows:

1) The department leader determines the specifications.

2) Documents and CVs for this employment are clearly marked with location and
experience, and alerts are disseminated on various business portals as needed.
Employee recommendations are candidates that have been recommended by an
existing employee.

3) The Human Resources Division chooses the interview applicants. Initially, we

choose a qualified candidate from among the applications we receive from
candidates. The HR department conducts interviews with candidates after alerting
them of the location and time of the meeting.

4) Selected candidates are put through private interviews. Conversation boards are
made by partners.

5) The Interview Committee's judgment is conclusive.

6) The interview covers the final, successful candidates' jobs, work schedules,
salaries, the nature of the work, vacation, probation, confirmation, dismissal, etc., or
a letter of reference written in the format required.

34
7) A copy of the recommendation letter, duly signed by the applicant, must be on file
with the HR department.

SOURCES OF RECRUITMENT
1. Referrals
2. Company Website
3. Job Enquires

Allowances
The marketing team covers the cost of travel and related charges. Employees who
have been with the company for more than six months are also eligible for PF and
ESI.
Social Security Fund: A social security programme designed to give workers a lump
sum, typically upon retirement. Employers and employees each contribute 12 percent
of the basic income under this plan.

Leave
The leave policy is to provide guidelines on the number of vacation days allowed per
year for all employees.

 42 annual leave; that is, 30 days of personal leave and 12 days of casual leave.
 The list of paid holidays will be announced at the beginning of the year.
 Late arrival or leaving the office one hour earlier may be permitted with the prior
permission of the office.

State insurance for employees

This policy aims to improve the health and quality of life of the people we work with
and their close relatives.
• Scheme 151 applies to all full-time employees with a monthly income of less than
15,000.

35
Performance appraisal system
Tests of performance assess a person's performance in relation to established
workplace objectives. The purpose of the performance evaluation system is to give
an organised review of employee performance and to determine their needs for
training and development while keeping the needs of the business in mind.
Employees receive rewards based on how well they work. In the evaluation system,
the following process is carried out:
i. Recommendation from head of the department.
ii. Attendance marks.
iii. Evaluation of supervisor.

Rewards policy
A reward is intended to motivate workers to deliver strong individual or team
performances.
• The goal is to increase worker output and job quality.
• It is to acknowledge the good deeds that assist individuals or groups in achieving
the aims and purposes of the organization

Payroll
a) Salary Calculation
The payroll department is responsible for accurately calculating employee
salaries and wages based on various factors, such as hours worked, overtime,
commissions, and any other relevant earnings components.

b) Time and Attendance Tracking

Payroll relies on accurate time and attendance records to calculate employee pay.
This may involve utilizing time tracking systems, reviewing timesheets, or using
clock-in/out systems to ensure accurate calculations.

c) Compliance with Employment Laws

36
 The payroll department ensures compliance with local labor laws and regulations
related to payroll, such as minimum wage requirements, overtime rules, and tax
obligations.

General administration

a) Recordkeeping and Documentation

HR general administration involves maintaining accurate and up-to-date records
and documentation related to employee data, employment contracts, personnel
files, performance appraisals, leave records, and other HR-related information.

b) HR Policies and Procedures

HR general administration includes developing, updating, and communicating
HR policies and procedures that govern various aspects of employee
management, such as recruitment, onboarding, performance management, leave
management, and disciplinary actions.

c) Compliance and Legal Requirements

Ensuring compliance with labor laws, employment regulations, and industry
standards, including maintaining records related to labor contracts, employee
rights, data protection, and health and safety regulations.

d) Employee Handbook:
Developing and maintaining an employee handbook that outlines the
organization's policies, procedures, code of conduct, benefits, and other
important information to guide employees.

e) Vendor Management
Managing relationships with HR service providers, including payroll processors,
benefits administrators, background screening agencies, and other external
vendors supporting HR functions.

37
Gratuity
Gratuity is a part of salary that is received by an employee from his or her employer
in gratitude for the services offered by the employees in the company. It is a benefit
plan and is one of the many retirement benefits offered by the employer to the
employee.
i. Gratuity is given according to Gratuity act 1972. In this firm Gratuity is paid when
an employee complete 5 or more years of full-time services in the company.
ii. Gratuity is paid within 30 days of last working day of the separating employee.
iii. Terminated employee will be given one month notice or a compensation of one
month salary

3.3.4 FINANCE DEPATMENT

The finance department plays a crucial role in managing the financial aspects of an
organization, ensuring funds are allocated effectively and in line with the company's
financial policies. It is responsible for maintaining financial and accounting records,
preparing reports, and providing essential financial information to management.
Finance is the backbone of a business, and the finance department oversees various
functions, including fundraising, efficient resource utilization, investment decision-
making, and determining optimal capital structure. Its primary focus is on making
sound financial decisions that contribute to the organization's success.

Vice President (CFO)

Manager

Executives

Fig: 3.5 Structure of Finance Department

38
DUTIES AND RESPONSIBILITIES

 Financial Planning and Analysis

The financial department is involved in strategic financial planning and
forecasting. They analyze financial data, assess market trends, and provide
insights and recommendations to support decision-making by senior
management.

 Budgeting and Cost Control

The department plays a crucial role in preparing and monitoring the company's
budgets. They collaborate with other departments to determine financial needs,
allocate resources, and control costs to ensure efficient operations and
profitability.

 Financial Reporting
The financial department is responsible for preparing accurate and timely
financial statements, including balance sheets, income statements, and cash flow
statements. They ensure compliance with accounting standards and regulations
while providing clear and transparent financial information to stakeholders.

 Tax Planning and Compliance

The financial department manages tax-related matters, including tax planning,
compliance, and reporting. They stay updated with tax laws and regulations to
ensure the company's adherence to tax obligations while optimizing tax
efficiency.

 Internal Controls and Risk Management

The financial department establishes and maintains internal controls to safeguard

39
 company assets and ensure the integrity of financial data. They identify and
mitigate financial risks through risk assessment and implementation of risk
management strategies.

 Cash Flow Management

Managing cash flow is a critical responsibility of the financial department. They
monitor cash inflows and outflows, optimize working capital, and ensure
adequate liquidity to meet operational and financial obligations.

 Financial Analysis and Performance Evaluation

The financial department analyzes financial data and key performance indicators
to evaluate the company's financial performance. They prepare financial reports
and provide insights on profitability, efficiency, and financial health to support
management decisions.

 Compliance and Audits

The financial department ensures compliance with financial regulations,
accounting standards, and internal policies. They coordinate external audits and
facilitate internal audits to assess the effectiveness of financial controls and
processes.

 Treasury and Capital Management

Managing the company's capital structure, debt obligations, and liquidity falls
under the purview of the financial department. They make strategic decisions
regarding capital investments, debt financing, and investment strategies.

 Stakeholder Management
The financial department interacts with external stakeholders, including banks,
investors, and regulatory bodies. They provide financial information, address
inquiries, and maintain positive relationships with stakeholders.

40
 Management Information System (MIS)
An MIS is a system that collects, processes, and presents information to support
managerial decision-making. The financial department plays a crucial role in
designing and maintaining the financial aspects of the MIS. This includes
developing financial reports, key performance indicators and dashboards to
provide timely and accurate financial information to management. The MIS helps
in monitoring financial performance, identifying trends, assessing the impact of
decisions, and facilitating effective strategic planning.

 Maintain and keep records

The finance department would keep track of sales data and expense reports that
were also used by other departments.

 Pay creditors
The finance department would make sure that the money owed to creditors was
paid.

 Pay employees wages and salaries

Running the payroll system is another important task for finance department to
undertake.

41
 HARRISONS MALAYALAM LIMITED
PROFIT AND LOSS ACCOUNT

PARTICULARS MARCH 2022 MARCH 2021 MARCH 2020

(In Cr.) (In Cr.) (In Cr.)
INCOME
Revenue from operations 448.41 420.57 339.61
(Gross)
Total operating revenues 471.53 451.11 387.30

Other income 7.13 2.83 6.13

TOTAL REVENUE 478.65 453.94 393.43

EXPENSES
Cost Of Materials Consumed 117.44 104.92 82.88
Purchase Of Stock-In Trade
Changes In Inventories of FG, 38.66 22.77 24.34

WIP and Stock- In Trade 3.27 7.85 -12.78

Employee Benefit Expenses 165.68 161.12 164.81

Finance Costs 11.18 13.60 15.91

Depreciation and Amortization 4.23 4.11 4.30

Expenses
Other Expense 115.25 99.14 104.68

TOTAL EXPENSES 455.70 413.49 384.14

PROFIT/LOSS FOR THE 22.95 40.45 9.29
PERIOD

42
 BALANCE SHEET
31 MARCH 31 MARCH 31 MARCH
PARTICULARS 2022 2021 2020
(In cr.) (In Cr.) (In Cr.)
EQUITIES AND LIABILITIES
SHAREHOLDERS FUNDS 18.45 18.45 18.45
Equity Share Capital
TOTAL SHARE CAPITAL 18.45 18.45 18.45
Reserves and Surplus 119.55 96.70 60.57
TOTAL RESERVES AND SURPLUS 119.55 96.70 60.75
TOTAL SHAREHOLDERS FUNDS 138.01 115.16 79.02
NON-CURRENT LIABILITIES
Long Term Borrowings 45.70 44.67 57.88

Other Long Term Liabilities 44.86 49.40 47.79

TOTAL NON-CURRENT LIABILITIES 93.50 97.00 108.74

CURRENT LIABILITIES
Short Term Borrowings 40.12 35.06 46.98

Trade Payables 51.46 43.36 48.16

Other Current Liabilities 65.56 88.20 91.93

Short Term Provisions 31.05 28.08 28.47

TOTAL CURRENT LIABILITES 188.20 194.70 215.54

TOTAL CAPITAL AND LIABILITES 419.71 406.86 403.29
ASSETS
NON-CURRENT ASSETS
Tangible Assets 285.53 284.52 284.94

Intangible Assets 0.07 0.09 0.00

Capital Work-In-Progress 35.71 21.77 12.68

FIXED ASSETS 321.31 306.39 297.62

43
CURRENT ASSETS
Current Investments 0.01 0.15 0.15

Inventories 34.92 34.88 40.54

Trade Receivables 13.52 16.01 8.23

Cash and Cash Equivalents 3.90 2.14 3.61

Other Current Assets 40.39 38.43 44.48

TOTAL CURRENT ASSETS 92.74 91.60 97.01

TOTAL ASSETS 419.71 406.86 403.29

44
 KEY FINANCIAL RATIOS
PARTICULARS MARCH 2022 MARCH 2021 MARCH 2020
(In Cr.) (In Cr.) (In Cr.)
PER SHARE RATIOS
Basic EPS (Rs.) 12.44 21.92 5.03

Diluted EPS (Rs.) 14.73 24.14 7.36

Book Value/Share (Rs.) 74.78 62.40 42.82

Dividend/Share (Rs.) 0.00 0.00 0.00

Revenue from
Operations/Share (Rs.) 255.51 244.45 209.87

PBDIT/Share (Rs.) 20.79 31.51 15.98

PBIT/Share(Rs.) 18.50 29.28 13.65

Net Profit/Share (Rs.) 12.44 21.92 5.03

PROFITABILITY
RATIOS
PBDIT Margin (%) 8.13 12.88 7.61

PBIT Margin (%) 7.23 11.97 6.50

Net Profit Margin (%) 4.86 8.96 2.39

Return on Net
Worth/Equity(%) 16.63 35.12 11.75

Return on Capital
Employed (%) 14.74 25.47 13.41

Return on Assets (%) 5.46 9.94 2.30

Total Debt/Equity(X) 0.62 0.69 1.33

Asset Turnover Ratio (%) 1.14 110.87 96.03

LIQUIDITY RATIOS
Current Ratio 0.49 0.47 0.45
0.31 0.29 0.26

45
Quick Ratio 3.37 12.93 9.55
Inventory Turnover Ratio
VALUATION RATIOS
Enterprise Value (Cr.) 325.51 334.29 199.33
EV/Net Operating 0.69 0.74 0.51
Revenue
EV/EBITDA 8.49 5.75 6.76

Market Cap/Net Operating 0.52 0.57 0.25

Revenue
Price/BV 1.77 2.23 1.24

Price/Net Operating 0.52 0.57 0.25

Revenue
Earnings Yield 0.09 0.16 0.09

3.3.5 WAREHOUSE MANAGEMENT

46
Warehouse management is responsible for implementing efficient storage and layout
strategies, ensuring that goods are organized in a logical and accessible manner. By
employing inventory management systems and utilizing technologies like barcode
scanning and RFID tracking, warehouse management enhances inventory accuracy,
reduces stock outs, and streamlines order fulfillment processes. Additionally,
effective warehouse management involves analyzing data and key performance
indicators to identify areas for improvement, such as optimizing picking routes,
reducing order processing time, and implementing automation solutions to increase
operational efficiency.

Deputy Manager

Junior Executives

Clerks

Fig: 3.6 Structure of warehouse management

DUTIES AND RESPONSIBLITIES

 Inventory Control
Effective warehouse management involves maintaining accurate and up-to-date
records of inventory levels, tracking stock movements, and implementing
systems to minimize errors and discrepancies
 Storage Optimization
Warehouse managers strive to optimize storage space by utilizing efficient layout
designs, shelving systems, and inventory categorization methods. This helps to

47
 maximize the use of available space and improve accessibility to items.
 Receiving and Inspection
Warehouse management includes procedures for receiving incoming goods,
conducting quality inspections, verifying quantities, and ensuring that the
received items match the corresponding documentation.
 Order Fulfillment
Efficient order fulfillment is crucial in warehouse management. This involves
picking the correct items from the inventory, packing them securely, and
ensuring timely and accurate delivery to customers or other internal departments.
 Warehouse Safety
Maintaining a safe working environment is essential for warehouse management.
This includes implementing safety protocols, providing proper training to
employees, and regularly inspecting equipment to prevent accidents and injuries.
 Technology and Automation
Many modern warehouses utilize technology and automation solutions to
improve efficiency. This may include barcode scanning systems, inventory
management software, automated material handling equipment, and real-time
tracking systems.
 Performance Measurement
Warehouse managers track and measure key performance indicators such as
inventory turnover, order accuracy, and picking and packing rates. This data
helps in evaluating warehouse performance and identifying areas for
improvement.
 Supplier and Vendor Management
Warehouse managers work closely with suppliers and vendors to ensure smooth
logistics operations. This includes coordinating deliveries, resolving issues
related to product quality or quantity, and maintaining positive relationships with
partners.
3.3.6 COMMERCIAL MANAGEMENT

Commercial management involves strategically overseeing and effectively managing

48
financial and business-related operations within a commercial organization. This
encompasses activities such as planning finances, creating budgets, managing
contracts, devising pricing strategies, analyzing sales performance, and evaluating
profitability. The primary goal of commercial management is to optimize revenue,
minimize costs, and promote sustainable business growth and profitability.

CFO

PURCHASE
MANAGER

EXECUTIVES

Fig.3.7 Commercial management

DUTIES AND RESPONSIBILITY

 Procurement
As a plantation company, HML would need to procure various inputs, such as
seeds, fertilizers, machinery, and equipment. Effective procurement management
involves identifying reliable suppliers, negotiating favorable terms, and
maintaining quality standards while optimizing costs.

 Financial Management
Commercial managers at HML would be responsible for financial planning and
analysis, budgeting, cost control, and monitoring key financial metrics. They
would work closely with the finance department to ensure profitability and
sustainable growth.

 Sales and Marketing

49
 HML would have a sales team responsible for promoting its products, negotiating
contracts with buyers, and ensuring customer satisfaction. Marketing efforts
would involve developing branding strategies, conducting market research, and
implementing advertising campaigns to reach potential customers.

 Risk Management
HML would need to assess and mitigate various risks associated with its
business, such as fluctuating commodity prices, natural disasters, labor issues,
and regulatory changes. Commercial managers would implement risk
management strategies to protect the company’s interests and maintain
continuity.

 Sustainability and Compliance

Plantation companies often face scrutiny regarding environmental sustainability,
labor practices, and compliance with applicable laws and regulations.
Commercial management would play a role in ensuring that HML adheres to
these standards and implements sustainable practices.

3.3.7 ESTATE MANAGEMENT

Estate Management is a critical function within Harrisons Malayalam Limited, a

renowned company in the tea and rubber manufacturing industry. This department is
responsible for overseeing and managing the company's vast estate holdings, which
include tea and rubber plantations. Estate Management plays a vital role in ensuring
efficient operations, sustainable practices, and the overall success of the company.

One of the primary responsibilities of the Estate Management department is the

cultivation and maintenance of tea and rubber plantations. This involves managing
the planting, nurturing, and harvesting processes, as well as implementing
agricultural practices to optimize yield and quality. The department is responsible for
ensuring the well-being of the estate, including soil fertility, irrigation systems, pest

50
and disease control, and the overall health of the plants. The Estate Management
department focuses on implementing sustainable and environmentally responsible
practices. They strive to minimize the environmental impact of the estate operations
by promoting conservation measures, efficient water usage, and responsible use of
fertilizers and pesticides. This includes adopting organic and sustainable farming
practices whenever possible, preserving biodiversity, and protecting natural
resources.The department also oversees the management of estate infrastructure and
facilities. This includes maintaining roads, irrigation systems, buildings, and housing
for estate workers. They ensure that the estate infrastructure is well-maintained,
providing a conducive environment for both agricultural operations and the well-
being of the workforce. Moreover, the Estate Management department is responsible
for managing the workforce on the estates. This includes recruitment, training, and
welfare initiatives for estate workers. They ensure compliance with labor laws and
strive to create a positive work environment that promotes employee well-being,
safety, and engagement.

The Estate Management department also plays a role in implementing and

monitoring social responsibility initiatives within the estates. This includes
community development projects, educational programs, healthcare facilities, and
other initiatives that contribute to the welfare of the local communities surrounding
the estates. The Estate Management department in Harrisons Malayalam Limited
plays a critical role in overseeing and managing the company's tea and rubber
plantations. Through effective cultivation practices, sustainable operations,
infrastructure management, and a focus on social responsibility, the department
ensures the long-term viability and success of the estates while promoting
environmental sustainability and contributing to the well-being of the surrounding
communities.

Estate management at Harrison’s Malayalam Limited involves the efficient and

effective management of the company’s plantations and estates. As a company
specializing in tea, rubber, and spices, Harrison’s Malayalam Limited owns and

51
operates several plantations across India.

The estate management team is responsible for overseeing various aspects of

plantation operations, ensuring the optimal utilization of land, resources, and
workforce. Their responsibilities may include:

 Land and Crop Management

The team manages the land under cultivation, ensuring proper soil health,
irrigation, and maintenance of plantation infrastructure. They oversee the
planting, pruning, and harvesting of tea, rubber, and spice crops to maximize
yield and quality.

 Workforce Management
Estate managers supervise the workforce, which includes plantation workers,
supervisors, and other personnel involved in cultivation and maintenance
activities. They ensure the availability of skilled and trained workers, promote a
safe working environment, and manage labor-related issues.

 Planning and Budgeting

The estate management team develops short-term and long-term plans for
plantation operations. They prepare budgets, allocate resources, and monitor
expenses to optimize productivity and profitability.

 Sustainability and Environmental Conservation

Harrison’s Malayalam Limited emphasizes sustainable practices and
environmental conservation. Estate managers implement measures to conserve
natural resources, minimize environmental impact, and promote biodiversity
conservation within the plantations.

 Pest and Disease Control

The estate management team monitors and implements measures to control pests,

52
 diseases, and weeds that can affect crop health and productivity. They may
collaborate with agricultural experts to develop integrated pest management
strategies.

 Quality Assurance
Estate managers work closely with the quality control department to ensure that
the products meet the company’s quality standards. They provide support and
guidance to implement quality control measures within the plantation operations.

 Regulatory Compliance
The estate management team ensures compliance with relevant laws,
regulations, and industry standards pertaining to plantation operations, worker
welfare, environmental protection, and product safety.

 Research and Development

Harrison’s Malayalam Limited may engage in research and development
activities to improve crop yield, develop new cultivars, or implement innovative
farming techniques. The estate management team may collaborate with research
institutions and experts to implement such initiatives.

General Manager

Estate Manager

Deputy/Assistant
Managers
53
 Executives

Fig 3.8 Structure of estate management

HML has 6 Tea estates and 5 rubber estates which are under RPSG group. The
estates are situated in Kerala and Tamilnadu.

TEA ESTATES OF HML

 Wentworth estate
 Lockhart estate
 Panniyar estate.
 Walladie estate
 Pattumalay estate
 Moonglar estate

RUBBER ESTATES OF HML

 Mooply estate
 Kundai estate
 Mundakayam estate
 Kumbazha estate
 Nagamala estate

DUTIES AND RESPONSIBILITES

 Property maintenance
Ensuring proper upkeep and maintenance of the company’s estates, including

54
 buildings, infrastructure, and landscaping.

 Estate planning
Developing strategies for land use, expansion, and optimization of resources to
maximize profitability and productivity.

 Financial management
Budgeting, financial planning, and reporting on estate-related expenses,
revenues, and investments.

 Regulatory compliance
Ensuring adherence to relevant laws, regulations, and environmental standards in
estate operations.

 Stakeholder management
Interacting with stakeholders, including shareholders, local communities,
government agencies, and industry associations, to foster positive relationships
and address concerns.

 Strategic decision-making
Analyzing market trends, evaluating investment opportunities, and making
informed decisions to enhance the estate’s long-term value and competitiveness.

 Communication and reporting

Providing regular updates and reports to company management and stakeholders
regarding estate performance, projects, and future plans

3.3.8 RUBBER BOUGHT OPERATIONS

55
The Rubber Bought Operations department at Harrisons Malayalam Limited is
responsible for overseeing the procurement and management of rubber supplies.
With a focus on ensuring a smooth and efficient supply chain, this department plays
a crucial role in supporting the company's rubber manufacturing operations.

One of the primary functions of the Rubber Bought Operations department is to

establish and maintain relationships with rubber plantations and suppliers. They
engage in regular communication and negotiations to secure a reliable source of raw
rubber materials. By fostering strong partnerships, they ensure a consistent supply of
high-quality rubber that meets the company's standards.

The department also conducts rigorous quality control checks on the rubber received
from suppliers. They employ various testing methods to assess the quality, purity,
and consistency of the rubber. This ensures that only superior-grade rubber is used in
the company's manufacturing processes, contributing to the production of high-
quality rubber products.

Managing inventory and logistics is another critical responsibility of the Rubber

Bought Operations department. They monitor stock levels, track demand forecasts,
and coordinate with other departments to optimize inventory management. This helps
to prevent shortages or excesses of rubber, streamline storage capacity, and reduce
costs associated with inventory management. The department closely monitors
market trends and price fluctuations in the rubber industry. By staying informed
about market conditions, exchange rates, and other factors influencing rubber prices,
they can make strategic purchasing decisions. This allows them to negotiate
favorable contracts and procure rubber at competitive prices, thereby optimizing
procurement costs. The Rubber Bought Operations department also places a strong
emphasis on sustainability and environmental responsibility. They actively
collaborate with rubber suppliers to promote sustainable practices, including
responsible land management and fair labor practices. By prioritizing sustainability,
the department contributes to the long-term viability of the rubber industry and

56
ensures the ethical sourcing of rubber materials.

The Rubber Bought Operations department at Harrisons Malayalam Limited plays a

vital role in the procurement and management of rubber supplies. Through strategic
sourcing, rigorous quality control, efficient inventory management, and a
commitment to sustainability, the department supports the company's rubber
manufacturing operations and helps maintain a competitive edge in the industry.

Manager

Assistant Manager

Junior Executives

Fig: 3.9 Structure of Rubber bought operations

DUTIES AND RESPONSIBILITIES

 Procurement
Identifying and sourcing high-quality rubber from reliable suppliers or rubber
plantations.

 Negotiation
Negotiating contracts and prices with rubber suppliers to ensure favorable terms
and cost-effectiveness.

 Quality Control
Implementing and maintaining strict quality control measures to ensure that the
purchased rubber meets the required specifications and standards.

57
 Inventory Management
Monitoring and managing rubber inventory levels to ensure an adequate supply
while minimizing excess or obsolete stock.

 Logistics
Coordinating the transportation and delivery of purchased rubber, ensuring
timely and efficient logistics operations.

 Cost Analysis
Conducting cost analysis and market research to optimize purchasing decisions
and identify opportunities for cost savings.

 Relationship Management
Building and maintaining strong relationships with rubber suppliers, resolving
any issues or disputes that may arise.

 Market Analysis
Monitoring market trends, prices, and supply-demand dynamics to make
informed purchasing decisions and identify potential risks or opportunities in the
rubber market.

 Reporting
Generating reports on procurement activities, inventory levels, supplier
performance, and cost analysis for management review and decision-making.

3.3.9 QUALITY CONTROL DEPARTMENT

The Quality Control Department in a tea and rubber manufacturing company plays a

58
critical role in ensuring that the products meet the company's established quality
standards. With a focus on maintaining consistency, reliability, and excellence, this
department performs a range of duties to uphold product quality throughout the
production process.One of the primary responsibilities of the Quality Control
Department is to conduct regular inspections and tests on raw materials, intermediate
products, and finished goods. They carefully examine the materials and products to
identify any defects, inconsistencies, or deviations from the predetermined quality
parameters. By doing so, they ensure that only high-quality materials are used and
that the final products meet the desired standards.To ensure effective quality control,
the department maintains detailed documentation of quality control activities, test
results, and other relevant information. This documentation serves as a
comprehensive record of the quality assurance processes and provides a basis for
tracking and verifying the quality of the products. It also facilitates traceability and
enables the department to address any quality-related issues promptly.

The Quality Control Department also monitors the production processes to ensure
adherence to quality standards. They utilize statistical process control techniques and
other tools to monitor key performance indicators and ensure that the processes
remain within acceptable limits. By closely monitoring the production processes,
they can identify any potential issues or variations and take corrective actions to
prevent quality deviations.

The department is responsible for training employees on quality control procedures,

standards, and best practices. They ensure that all personnel involved in the
production process are equipped with the necessary knowledge and skills to maintain
and uphold quality standards. This training helps create a culture of quality
consciousness and fosters a collective responsibility for product quality.

The Quality Control Department ensures that the production processes comply with
applicable quality regulations and industry standards. They stay updated on the latest
quality requirements and work closely with regulatory bodies to ensure compliance.

59
This includes conducting audits and inspections to ensure that the company's
processes align with the required quality standards.

The department also plays a crucial role in identifying areas for improvement in the
production process. They collect and analyze data on quality metrics, perform root
cause analysis to identify underlying issues, and suggest corrective actions to
enhance overall product quality. This continuous improvement approach helps the
company enhance its processes, reduce waste, and deliver products that consistently
meet or exceed customer expectations.

Quality Control Head

Supervisors

Lab Technicians

Suppliers

Fig: 4.0 Structure of quality control department

DUTIES AND RESPONSIBILITIES

The quality control department of Harrison's Malayalam Limited is responsible for

ensuring that the products meet the company's quality standards. They typically
perform various tasks to monitor and maintain quality throughout the production
process. These tasks may include:

 Inspection and testing

The quality control department conducts regular inspections and tests on raw

60
 materials, intermediate products, and finished goods. They check for any defects,
inconsistencies, or deviations from the established quality standards.

 Documentation
They maintain detailed records of quality control activities, test results, and other
relevant information. This documentation helps in tracking and verifying the
quality of the products

 Process monitoring
Quality control personnel monitor production processes to identify any potential
quality issues. They may use statistical process control techniques or other tools
to ensure that the processes are within acceptable limits.

 Training and compliance

The department is responsible for training employees on quality control
procedures, standards, and best practices. They also ensure that the production
processes comply with applicable quality regulations and industry standards.

 Continuous improvement
The quality control department plays a crucial role in identifying areas for
improvement in the production process. They collect and analyze data, conduct
root cause analysis, and suggest corrective actions to enhance product quality.

3.3.10 NEW PRODUCT DEVELOPMENT DEPARTMENT

The New Product Development Department of Harrisons Malayalam Limited plays a

crucial role in driving innovation and growth within the company. With a focus on
developing new products and improving existing ones, this department is at the
forefront of creating value for both the company and its customers.

61
The department consists of a diverse team of professionals, including product
managers, engineers, designers, and market researchers. These individuals
collaborate closely to identify market trends, analyze customer needs, and develop
innovative solutions that meet those needs effectively. One of the key responsibilities
of the New Product Development Department is conducting market research to
understand consumer preferences, emerging trends, and competitive landscapes. This
research helps in identifying new product opportunities and provides valuable
insights for decision-making.

The department also works closely with the Research and Development team to
develop prototypes and conduct rigorous testing to ensure the quality and efficacy of
the new products. They are responsible for coordinating cross-functional teams,
including manufacturing, marketing, and sales, to bring the new products to market
successfully. Continuous improvement is another focus of the department. They
actively seek feedback from customers and monitor product performance to identify
areas for enhancement or optimization. This feedback loop enables them to iterate
and refine their products to ensure they remain competitive in the market.

Executive
Director

Operations Project
Manager Manager

Fig 4.1 Structure of New Product Development Department

DUTIES AND RESPONSIBILITIES

62
New Product Development Department of Harrisons Malayalam Limited, a tea
manufacturing company, carries out a range of important duties and responsibilities
to ensure effective product development and successful market introduction. Some of
these duties and responsibilities include:

 Market Research
Conducting market research to identify customer needs, preferences, and
emerging trends in the tea industry. This includes analyzing consumer behavior,
studying competitor products, and assessing market potential.

 Idea Generation
Generating innovative ideas for new tea products or product enhancements. This
involves brainstorming sessions, collaboration with cross-functional teams, and
considering customer feedback and market insights.

 Concept Development
Refining and developing initial product ideas into viable concepts. This involves
creating detailed product specifications, outlining key features and benefits, and
assessing feasibility in terms of resources, technology, and market demand.

 Product Design
Collaborating with designers and engineers to develop the physical design and
packaging of new tea products. This includes considering aesthetics,
functionality, and sustainability aspects.

 Prototyping and Testing

Creating prototypes of new tea products for evaluation and testing purposes. This
includes conducting sensory evaluations, consumer trials, and performance
testing to ensure quality, taste, and safety standards.

63
 Cross-Functional Collaboration
Coordinating and collaborating with various departments such as manufacturing,
marketing, sales, and supply chain to ensure seamless execution of the new
product development process. This involves regular communication, setting
timelines, and addressing potential challenges.

 Commercialization and Launch

Planning and executing the successful launch of new tea products in the market.
This includes developing marketing strategies, pricing, packaging, promotional
campaigns, and distribution plans.

 Performance Monitoring
Tracking the performance of newly launched products in the market, analyzing
sales data, and gathering customer feedback. This information helps in assessing
product success, identifying areas for improvement, and making data-driven
decisions for future iterations or product line extensions.

 Compliance and Regulatory Considerations

Ensuring that new tea products comply with relevant regulations, quality
standards, and safety guidelines. This includes staying updated on industry
regulations and working closely with regulatory bodies when necessary.

 Continuous Improvement
Continuously monitoring market trends, customer feedback, and technological
advancements to identify opportunities for product improvements, line
extensions, or new product launches.

PRODUCTION PROCESS

64
 Cultivation

Planting

Pruning and Maintenance

Harvesting

Withering

Rolling

Oxidation

Fixation

Drying

Sorting and Grading

Packaging

Fig 4.2 Production Process

Tea production involves several processes, including cultivation, harvesting,

processing, and packaging. The specific methods and steps may vary depending on

65
the type of tea being produced, but here is a general overview of the tea production
process:

1. Cultivation

Tea plants are typically grown in tea gardens or plantations. The plants require
specific climatic conditions, such as moderate temperatures, ample rainfall, and well-
drained soil. They are often grown in regions with high altitudes.

2. Planting

Tea plants are propagated either from seeds or cuttings. The plants are grown in
nurseries until they reach a suitable size for transplantation. They are then planted in
rows with adequate spacing to allow for proper growth.

3. Pruning and Maintenance

Tea plants require regular pruning to control their shape and encourage new growth.
Weeds and pests are also managed through various agricultural practices, including
the application of fertilizers and pesticides.

4. Harvesting

The timing of tea leaf harvesting depends on the type of tea being produced and the
desired flavor profile. For example, green tea leaves are often harvested when they
are young and tender, while black tea leaves are harvested when they have fully
matured. Plucking is typically done by hand, although in some large-scale
operations, mechanical harvesters may be used.

5. Withering

After harvesting, the tea leaves are spread out in a well-ventilated area to undergo
withering. This process involves the partial dehydration of the leaves, allowing them
to wilt. Withering reduces the moisture content, making the leaves more pliable and
ready for further processing.

6. Rolling

The withered leaves are rolled or twisted to release the enzymes and essential oils
present in the leaves. This step helps initiate oxidation in the case of black tea
production. Rolling can be done by hand or by using machinery designed specifically
for this purpose.

7. Oxidation/Fermentation

66
 Oxidation is a crucial step in the production of black and oolong teas. The rolled tea
leaves are spread out in a controlled environment with high humidity and
temperature, allowing the leaves to undergo enzymatic reactions. This process leads
to the development of flavor compounds and changes the color of the leaves.

8. Fixation

Once the desired level of oxidation is achieved, the tea leaves are heat-treated to halt
the oxidation process. Fixation can be done through various methods such as pan-
firing, steaming, or baking, depending on the type of tea.

9. Drying

The tea leaves are dried to remove any remaining moisture. This step helps preserve
the tea and prevents the growth of mold or bacteria. Drying can be done using hot
air, sunlight, or specialized drying equipment.

10. Sorting and Grading

After drying, the tea leaves are sorted based on size, shape, and quality. The leaves
may go through sieving machines or be sorted by hand to remove any unwanted
particles or unevenly processed leaves. The tea is then graded based on its quality
and appearance.

11. Packaging

The final step in tea production involves packaging the sorted and graded tea. It is
usually packed in sealed bags or containers to preserve freshness and aroma. The
packaged tea is then ready for distribution and sale.

SWOT ANALYSIS

67
To assess a business's strengths, weaknesses, opportunities, and threats, a SWOT
analysis is utilised. Defining the business's goal and determining the internal and
external factors that are helpful and harmful to achieving that goal are both involved.
Once the SWOT analysis has been completed, the goal should be set. This would
enable the organisation to create goals or targets that are realistic.

• Strengths: Elements of a company or initiative that offer it an edge over rivals.

• Weaknesses: traits that put the company or project at a disadvantage in comparison
to competitors.
• Opportunities: aspects that the project could use to its benefit.
• Threats: environmental factors that can be problematic for the projector enterprise.

STRENGTHS

 Extensive Plantation Holdings

Harrisons Malayalam Limited possesses a vast land bank dedicated to tea, rubber,
and other agricultural crops. This provides the company with a strong asset base
and a competitive advantage in the industry.

 Strong Brand Reputation

The company has a long-standing presence in the market and a well-established
brand reputation. Harrisons Malayalam Limited is known for its commitment to
quality, sustainability, and social responsibility, which resonates well with
customers and stakeholders.

 Diversified Product Portfolio

The company offers a wide range of products, including tea, rubber, spices, and
other agricultural commodities. This diversification helps mitigate risks

68
 associated with fluctuations in demand or market conditions for a specific
product.

 Integrated Supply Chain

Harrisons Malayalam Limited manages its supply chain from cultivation to
processing and distribution. This integration allows for better control over
quality, cost efficiency, and traceability throughout the value chain.

 Experienced Management Team

The company benefits from a seasoned and experienced management team that
possesses in-depth industry knowledge and expertise. This enables effective
decision-making and strategic planning to drive business growth.

WEAKNESESS

 Dependence on Commodity Markets

The company's business is susceptible to price volatility and fluctuations in
commodity markets, such as tea and rubber. This dependency exposes Harrisons
Malayalam Limited to risks beyond its control, impacting its profitability.

 Limited Geographic Presence

While Harrisons Malayalam Limited has a strong presence in certain regions, its
geographic footprint is relatively limited. This can limit growth opportunities and
market reach compared to competitors with a wider geographical presence.

 Infrastructure Challenges
The company may face infrastructure limitations in certain regions where its
plantations are located. Issues like inadequate transportation facilities or
inadequate processing infrastructure can impact operational efficiency.

69
 Vulnerability to Climate Change
Climate change poses a risk to agricultural-based businesses like Harrisons
Malayalam Limited. Unpredictable weather patterns, changing rainfall patterns,
and the potential for crop diseases can impact crop yield and productivity.

 Labor Intensive Operations

The agricultural sector is typically labor-intensive, and Harrisons Malayalam
Limited is no exception. Managing a large workforce, ensuring compliance with
labor regulations, and dealing with labor-related issues can pose challenges and
increase costs.

OPPORTUNITES

 Growing Demand for Sustainable and Ethical Products

With increasing consumer awareness and demand for sustainable and ethically
sourced products, Harrisons Malayalam Limited can leverage its strong
sustainability practices and certifications to capture market share and gain a
competitive edge.

 Product Innovation and Diversification

The company can explore opportunities to innovate and diversify its product
offerings. This could involve introducing new product lines, developing value-
added products, or exploring niche markets to cater to changing consumer
preferences.

 Expansion into New Markets

Harrisons Malayalam Limited can consider expanding its operations into new
geographic markets or target emerging markets with growing demand for its
products. This expansion can help tap into new customer bases and diversify
revenue streams.

70
 Technological Advancements
Embracing technological advancements in plantation management, processing,
and supply chain logistics can enhance operational efficiency, reduce costs, and
improve overall productivity. Adopting automation, data analytics, and precision
agriculture techniques can yield significant benefits.

 Strategic Partnerships and Alliances

Collaborating with strategic partners, suppliers, or retailers can create
opportunities for joint marketing efforts, expanded distribution networks, and
access to new customer segments. Strategic alliances can also help share risks
and resources, facilitating business growth.

THREATS

 Competitive Market Landscape

Harrisons Malayalam Limited operates in a highly competitive market with
numerous players. Competitors with similar product offerings, lower costs, or
stronger market presence may pose challenges in terms of pricing, market share,
and customer loyalty.

 Fluctuating Commodity Prices

Volatile commodity prices can impact the company's profitability. Factors such
as global supply and demand dynamics, exchange rates, and geopolitical events
can cause price fluctuations, making it difficult to predict and plan for future
revenues.

 Regulatory and Compliance Risks

Compliance with complex regulatory frameworks, labor laws, environmental
regulations, and certifications can be challenging for agricultural businesses.

71
 Non-compliance or changes in regulations can result in penalties, reputational
damage, or operational disruptions.

 Environmental and Climate Risks

Climate change and environmental factors pose threats to agricultural businesses.
This includes the risk of natural disasters, changing weather patterns, water
scarcity, and the spread of pests or diseases, which can impact crop yield, quality,
and overall operations.

 Changing Consumer Preferences and Trends

Shifting consumer preferences, evolving dietary habits, or new health and
wellness trends can impact the demand for certain products or drive the need for
product innovation. Failure to adapt to changing consumer preferences can result
in loss of market share.

FINDINGS

72
 Harrisons Malayalam Limited has a strong brand reputation and is recognized for
its commitment to quality, sustainability, and social responsibility.
 The company's diversified product portfolio, including tea, rubber, spices, and
other agricultural commodities, helps mitigate risks associated with fluctuations
in demand or market conditions.
 Integrated supply chain management from cultivation to processing and
distribution provides better control over quality, cost efficiency, and traceability.
 The company's extensive plantation holdings provide a strong asset base and a
competitive advantage in the industry
 Harrisons Malayalam Limited faces challenges related to price volatility and
fluctuations in commodity markets, such as tea and rubber, which can impact its
profitability.
 The company's limited geographic presence may restrict growth opportunities
and market reach compared to competitors with a wider footprint.
 Infrastructure limitations in certain regions where the plantations are located can
impact operational efficiency.
 Managing a large and labor-intensive workforce poses challenges and increases
operational costs.
 Growing consumer demand for sustainable and ethically sourced products
presents an opportunity for Harrisons Malayalam Limited to capture market share
and gain a competitive edge.
 Product innovation and diversification can help the company tap into changing
consumer preferences and explore niche markets.
 The competitive market landscape poses challenges in terms of pricing, market
share, and customer loyalty.
 Fluctuating commodity prices present a risk to the company's profitability and
financial stability.
 Compliance with regulatory frameworks, labor laws, and environmental
regulations is a critical aspect for the company's operations.

SUGGESTIONS

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 Develop marketing campaigns to raise awareness about your tea and rubber
products. Utilize various marketing channels, such as social media, content
marketing, influencer collaborations, and participation in industry events and
trade shows.
 Strengthen market competitiveness by continuously investing in research and
development for innovative products and value-added offerings.
 Enhance supply chain efficiency through the adoption of advanced technologies
and automation, improving productivity and reducing costs.
 Mitigate commodity price volatility risks by actively managing hedging
strategies and exploring forward contracts.
 Implement sustainable farming practices, including water conservation,
renewable energy adoption, and organic farming techniques, to align with
consumer preferences and enhance brand image.
 Strengthen partnerships and collaborations with suppliers, distributors, and
retailers to expand distribution networks and increase market reach.
 Invest in infrastructure development to overcome limitations and streamline
operations in regions with infrastructure challenges.
 Foster strong relationships with local communities and stakeholders through
social responsibility initiatives, community engagement, and transparent
communication.
 Enhance risk management strategies to effectively address climate change-related
risks, such as extreme weather events and crop diseases.
 Strengthen employee training and development programs to ensure a skilled and
motivated workforce capable of driving growth and operational excellence.
 Explore opportunities for vertical integration by expanding into value-added
downstream activities, such as tea blending or rubber product manufacturing.

CONCLUSION

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Harrisons Malayalam Limited, as a tea and rubber manufacturing company,
possesses several strengths such as a long-standing heritage, extensive land holdings,
established brands, and a strong market presence. The company has received
recognition for its tea quality and initiatives in workers' welfare. However, it also
faces challenges including seasonal variability, market price volatility, intense
competition, and vulnerability to climate change.

To address these challenges and further capitalize on its strengths, Harrisons

Malayalam Limited should consider diversifying its product portfolio, embracing
sustainable practices, investing in research and development, strengthening
marketing and branding efforts, exploring new markets, optimizing the supply chain,
and focusing on employee training and development. By taking these strategic steps,
the company can enhance its competitiveness, adapt to market dynamics, and
position itself for long-term success in the tea and rubber industry.

BIBLIOGRAPHY

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WEBSITES

 Harrisons Malayalam Ltd : Rubber, Tea, Tissue Culture, Engineering

– India – My WordPress Blog. (2023, January).
https://harrisonsmalayalam.com/
 Moneycontrol.(2022,December)https://www.moneycontrol.com/
india/stockpricequote/plantations-teacoffee/harrisonsmalyalam/HM02
 https://www.google.com/amp/s/www.thehindubusinessline.com/
economy/agri-business/award-for-harrisons-malayalam/
article23089173.ece/amp/

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