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Rice Bran Oil Project
Rice Bran Oil Project
1.6 Methodology
Primary and secondary data have been collected and used to bring out
this project report :
1) Primary data have been collected through :
By interviewing and close contact with Managing Director Sri R.
Manjunath, Director Sri A.K. Prashanth, Sri Savan V, Ambarkar.
The manager was personally met to get more information regarding the
following aspects :
a) History of the company.
b) Methods adopted by the company in promoting the product in the
market.
c) Annual turnover and demand for the product.
d) Administrations of sales.
1.7 Limitations
The limitations of the study are as follows :
1. The information provided by the company is assumed to be authentic.
2. The data and opinion collected are assumed to be objective.
3. This study was done. Mainly through the secondary data.
4. Also, time limitation of the study.
Chapter 2: This chapter deals with the company profile of products Akshath
Rice Bran oil.
Chapter 3 : Information about rice brand and health benefits of Akshath Rice
Bran oil.
The Man Power required is two categories Skilled and Unskilled. The
Skilled workers like boiler operators, plants operator, electricians etc., and the
company has already having the skilled workers who are working in the
existing solvent extraction unit. The additional Manpower required will be
recruited & Trained in the existing plant.
Some of the above manpower which are already available in the existing
setup, and additional people wherever necessary will be recruited & trained in
the existing plant.
Transport:
As the plant will be located near the NH4 required transport would be
available easily. Since from the inception of the company we have not faced
any problem in getting the transportation.
Quality Control:
Company is already having full pledged laboratory for testing the raw
materials and finished goods for the quality control purpose. Additional
equipments are proposed to be purchased & a provision of Rs 9 lakhs has been
made in this project.
Effluents:
3. Depreciation:
(a) Depreciation on fixed assets has been provided on SLM method in
accordance with provisions of Schedule XIV to the companies Act, 1956:
(b) Depreciation has been provided on pro-rata basis on the
additions/deductions, if any.
4. Investments:
Investments are carried at cost of acquisition. There is no
diminution in the value of investment.
5. Inventories:
Inventories are carried at lower of cost or net realisable value as
certified by the management, i) Raw materials, stores and work in
progress - at cost or net realizable value whichever is tower. ii) Finished
goods - at cost or net realisable value whichever is lower.
6. Retirement Benefit:
a) Gratuity:
The provisions of Payment of Gratuity Act, 1972 does not apply
since, the commercial operation has been commenced from June 2003.
As such no liability has been determined.
7. Bonus:
Bonus has been provided on ad-hoc basis at the minimum rate as
per the Provisions of Payment of Bonus Act, 1956.
8. Taxation:
Provision for Income Tax comprises current tax and deferred tax
charge/release. Deferred tax is recognized subject to consideration of
prudence on timing difference, being difference between taxable and
accounting income and expenditure that originate in one period and are
capable of reversing in one or more subsequent period(s). Deferred tax
assets are not recognised unless there is virtual certainty that sufficient
taxable income will be available against which such deferred tax assets
will be realised.
9. Borrowing Cost:
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are considered as a part of those assets,
while other borrowing costs are recognized as expense in the year in
which they are incurred.
Assistant
Store
Accountant
Delivery
Salesman
Quality
Computer
Auto
Production
Mechanical
Manager
Director
keeper
Driver
Control
Manager
Boys
Operator
Manager
Manager
Strengths :
Weakness :
Opportunities :
Threatening :
Competitor for same products. But there is a competition from other oil
company products.
Rice Bran: It is the outer brown layer of rice grain. Rice bran forms 8% of
grass Milled rice contains 15-20% oil. 0.4-1.5%wax, 5-8% Proteins, 40-50%
Carbohydrates, and 5-8% Fiber. Rice bran processing & production of oil is
increasing year to year.
Common Name: Rice Paddy (English), Chawal (Hindi), Dhan (Punjabi) Bhatta
(Kannada)
Bran is a layer b/w husk & endosperm of the paddy grain. There are
18,000 varietes of rice in the world.
3.2. Cultivation condition: Short day plant Rain fed/ irrigated Crop= 39oS
lalitufe (Australia) to 45o N latitude Growing = (Japan) 50o N latitude (china)
below sea level to 1978 meters high above sea land.
Temperature = 16-20o C at flowering time & 18-30oC
Condition = during ripening
Duration= 85-90 days to 240 days in different varieties
9) Quality Premium:- For any excess of oil content over 17% the buyer will
pay a premium to the seller on the basis of 1:1 for each percent of excess in oil
and proportionately for any fraction thereof.
b) Sampling & Analysis:- For the purpose of drawing samples. The seller
within 48 hr of the receipt of the written on telephonic intimation of the buyer
informing arrival of goods at the factory, depute his representative to the
factory of the buyer, for samples will be drawn jointly at the buyer’s/ sellers
factory of godown or at the place of delivery by the representatives of the buyer
& the seller from each wagon load /lot lorry & sealed & each one of them shall
be numbered. In cases the seller’s representative is not present as provided
here in above the samples will be drawn by the buyer’s representative & sealed.
The sealed samples will be binding on both parties for analysis reports as
provided below one sealed samples will be retained by the buyer. The buyer
will report to the seller in writing within 20 days after sealing of the samples,
the result of the first analysis. In case the seller so desire, they may send the
second sealed sample to any of the laboratories approved by the solvent
extractors association of India under intimation of the buyer in writing within 5
days on receipt of buyer’s report. On receipt of 2nd analysis result, it should be
communicated to the buyer. Within 5 days on receipt of the analysis report
which shall not in any case be dated later than 15 days from receipt of the
sample by the laboratory. The buyer may accept the same or forward the third
sample to the solvent extractors association of India only if the difference of
any item b/w the first & second analysis is more than 0.5% & in case of oil
more than 0.25% unit Such third any will be called for only for that particular
item of test which is in dispute in previous two analysis. Seller will also have
similar right to act for third analysis with the solvent extractors association of
India under intimation on the buyer. Within 7 days of the receipt of seller shall
04-05 03-04 02/03 01/02 00/01 04-05 03-04 02/03 01/02 00/01 04-05 03-04 02/03 01/02 00/01
(F) (P) (F) (P) (F) (P)
Groundnut 23.70 23.41 21.58 24.08 23.05 1.06 1.05 0.99 1.05 1.01 22.45 22.19 21.86 22.98 22.89
Castorseed 1.21 1.08 0.96 1.04 1.35 0.97 0.93 0.85 0.87 0.90 1.25 1.16 1.12 1.20 1.50
Sesamessed 3.20 3.12 3.01 3.24 2.87 0.44 0.42 0.42 0.43 0.40 7.36 7.38 7.11 7.60 7.16
Rapeseed 40.95 38.76 32.86 38.68 37.51 1.52 1.51 1.45 1.54 1.52 26.88 25.69 22.60 23.87 24.61
Linseed 2.36 2.22 2.09 2.16 2.36 0.77 0.74 0.71 0.79 0.77 3.06 2.99 2.93 2.91 3.05
Sunflower 25.36 26.32 23.76 21.59 23.21 1.20 1.17 1.19 1.18 1.20 21.19 22.50 20.03 18.35 19.36
Soybean 214.50 186.44 196.45 184.53 175.26 2.35 2.10 1.39 2.31 2.30 91.34 88.80 82.32 79.72 76.07
Cottonseed 38.21 35.51 33.47 37.33 33.94 1.12 1.10 1.09 1.10 1.06 34.09 32.24 30.63 33.92 32.03
Palm Kernel 8.15 7.73 7.47 6.86 6.64 0.92 0.92 0.94 0.91 0.93 8.89 8.39 7.95 7.56 7.16
Copra 5.14 5.03 5.28 5.04 5.66 0.55 0.53 0.56 0.53 0.60 9.44 9.42 9.41 9.47 9.46
Total 362.78 329.62 326.94 322.52 311.86 1.61 1.49 1.59 1.55 1.53 225.94 220.77 205.96 207.58 203.29
Oil/ Fat 03/04 (F) 02/03 (P) 01/02 00/01 99/00 98/99 97/98 96/97 95/96
Soybean oil 31.28 31.02 29.44 27.08 25.32 24.58 23.19 21.00 20.37
Cotton oil 4.13 3.95 4.30 3.94 3.87 3.88 4.07 4.03 4.13
Groundnut Oil 4.90 4.45 5.32 4.984 4.46 4.78 4.38 4.51 4.43
Sunflower Oil 9.48 8.61 7.45 8.69 9.55 9.30 8.64 9.15 8.95
Rapeseed oil 13.96 12.31 13.45 14.01 14.55 12.71 12.22 11.48 11.67
Sesame oil 0.78 0.18 0.83 0.72 0.69 0.69 0.74 0.68 0.63
Corn Oil 2.05 2.03 1.99 1.95 1.95 1.99 1.93 1.87 1.81
Palm Oil 2.91 2.65 2.78 2.73 2.41 2.54 2.56 2.77 1.60
Palm Kernel oil 28.42 27.52 25.07 23.81 21.27 19.50 16.97 17.49 16.15
Coconut Oil 3.38 3.28 2.99 2.91 2.65 2.45 2.18 2.18 2.06
Butter as fat 3.20 3.21 3.25 3.51 3.08 2.37 3.45 3.15 2.91
Lard 6.44 6.28 6.22 5.99 5.94 5.87 5.73 5.70 5.67
Fish Oil 7.28 7.09 6.88 6.69 6.68 6.69 6.20 5.97 5.85
Linseed oil 0.61 0.60 0.63 0.67 0.71 0.73 0.68 0.66 0.66
Castor oil 0.45 0.42 0.45 0.52 0.48 0.44 0.46 0.46 0.48
Tallow and grease 8.03 8.08 8.04 7.71 8.21 8.11 7.68 7.41 7.45
Total 128.28 123.24 120.04 117.08 113.40 107.73 101.91 99.83 96.18
Source : Oil World, F- Forecast, P-Provisional
Production :
Beef & Veal 3000.00 2965.00 2925.00
Pork 638.00 625.00 613.00
Mutton/Lamb 714.00 710.00 705.00
Poultry Meat 700.00 670.00 630.00
Other meal 108.00 146.00 146.00
Total 5200.00 5116.00 5019.00
Population: 1082300.00 1065460.00 1049580.00
(‘000)
Oil Seeds / Oil cake and rice bran processing capacity of solvent
extraction units (SEA members) (1985 to 2004)
Packing:
The oil come in 3 different type of packing that is in pouches and
2nd in the Tin and 3rd it comes in bad debts.
Quantity:
Our oil comes in 1 /2 liters, 1 liter 5 liters that is in pouch, and 15
kg Tin and 180 kgs in barrels. The pricing will be changing according to
market demand and competition.
Source : Table 1
Source : Table 2
Source : Table 3
About 40% of the respondents are having the income around rs.5000-
10000, 36% are having the income around the rs.10000-20000, and 24% are
having the income around 20000 & above.
Source : Table 6
MOTIVATING FACTORS
Source : Table 7
QUANTITY
OPINION
This 5 point Likrd scale table shows us the opinions of the customer and
most of the consumers opinion about there refined oil is good 11(44%) and
satisfactory 9(36%).
Source : Table 1
Source : Table 2
Source : Table 3
Source : Table 5
This 5 point Likerd scale table shows us the opinions of the customer
and most of the consumers opinion about there refined oil is good 10(40%) and
satisfied 13(52%).
Source : Table 7
Advertising:
In the present world of technology, advertising plays the major role
in marketing of a product. Advertising is a social and business process
responsible for the mass communication of the information. !f the product
is the lack. Advertising is the key to open the product to the market. It is
only one mediator between producer and ultimate consumer, which
makes the consumer to see, to think and to feel about the product and it
also, tempts the consumer to buy the product. Advertisement can
popularize and establish an image on the product and build up reputation
and good will for the producer. This show that in present world
advertising can create wonders in the market advertising may be by
means of television or by using board cast media or by using magazines
as the media.
By survey it has been seen that most of the consumers prefer
television advertising as they spend most of their free times in watching
television.
So the company gives more advertisement in Television and also
through magazines, newspapers, internet etc., to attract the new
customers from the corner and corner of the country.
Attractive packing:
Packing plays the most vital role in marketing the cosmetics
successfully packaging is an activity which is concerned with the
protection, economy, and convenience with the promotional
considerations. An attractive package maintains the brand image and
creates an interest in minds of the customers and an impulse to by. So the
Innovation:
Product innovations have become an important part of the
companies marketing strategy today. Both establishing and established
firms are inventing new products of brining about changes in their
original products to increase and maintain the consumers. Now a day’s
people expect something new. They purchase such products, which have
something special in them. Therefore innovations are must.
Distribution:
vi.The distribution network of the company is good, but rather than this
the company should make quickly flew of products the distributors. If
in case of delay in supply, people will start moving to next best
alternative.
vii.The company should take steps to supply its products to distributors
with 3 to 4 days.
viii.The company should appoint effective sales person in rural and
district area to boost the sales.
ix.Periodical survey of the market is necessary by the company to know
changing attitudes regarding to products.
Suggestion’s of dealers:
1) They must note down any complaints about the product or any defect
and lodges with the company’s sales man.
2) They must supply the product, whenever there is demand because it may
lead to diversion of mind to other product.
3) They must also study the strategy of other products i.e. its competitors.
4) They must be very alert to changing situation.
5) They must provide special gift offers for selling a targeted amount of
boxes.
Own suggestions:
1) They must give add’s in different media but not to stick on to the single
type.
2) Cooking competitions should be arranged in the cities to attract the
customers.
3) Price should be less than the other products.
4) By the survey most of the consumers suggested to change the colour.
The result of the survey proves that Indians although being price
conscious people now are concentrating on the health and quality factor as
well. To have a dominant product in the market, sales promotion is very
crucial.
1) Name:
2) Address:
c) 40-50 d) Above50
6) Monthly/Annual
a) 5000-10000 b) 10000-20000
c) 20000-30000 d) 30000 and above
a)Health b) Price
c) Quality d) Quantity
e) Advertising f) Brand
11) What is your opinion about the existing pack? Do you want any kind of
changes?
a)Yes b) No
16) Please offer some suggestions to improve the oil, to reach your
expectation’s
Date:
Place: Signature of the respondent
1) NAME :
2) ADDRESS :
c) 40-50 d) above50
6) Monthly/Annual Income:
9) What factor motivated you to use the particular brand refined oil?
a) Health b) Price
c) Quality d) Quantity
e) Advertising f) brand
g) Dealers influence
10) Are you satisfied with regard to the purity of your brand oil?
a) Yes b) No
11) In what quantity do you need your refined oil, in pouch or cans?
12) What is your opinion about the existing pack? Do you want any kind of
changes?
a. Yes b) No
14) Have you ever tried Akshath refined rice bran oil?
a. Yes b) No
15) How you felt about the quality of the edible oil that you are using? Give
16) Do you recommend Akshath rice brain oil to the potential buyer?
a) Yes b) No
17) Which price do you think will be more suitable for 1 liter?
a) 50-55 b) 55-60
c) 60-65 d) 65-70
a) Yes b)No
22) When would you like to try a new oil when there is an?
Date:
Place: Signature of the respondent
➢ SEA book
➢ Google.com
➢ Ask.com
➢ Oilseed.com
➢ Akshath.com