1.

Industry Profile
1.1: Scope of the industry
a. Cashew: An Export- oriented Commodity Cashew is primarily an export-oriented commodity in India. Using a commonly accepted conversion ratio of raw nuts to kernel at 4.54, the volume of processed kernels in the country was worked out. By deducting the quantity of exported kernels from the total processed kernels, domestic consumption of kernels has been derived. It indicates that although the domestic consumption of processed kernels has increased during 2000-01 to 2007-08, the share of kernels exported in the total kernels processed in the country was still 40.84 percent during 2007-08.

b. Foreign Exchange Earnings India is the premier exporter of cashew kernels and earns a sizeable amount of foreign exchange. India is the second largest exporter after Vietnam, accounting for 34 percent of the world's export of cashew kernels. During 2007-2008, India exported 114340 MT of cashew kernels and 7813 MT of Cashew nut Shell Liquid (CNSL) valued at Rs. 228890 lakh and Rs. 1197 lakh respectively. Due to the stagnancy in raw cashew nut production in the country, the processing industries are forced to depend on imported raw nuts. A total quantity of 605970 MT of raw nut valued at Rs. 174680 lakh were imported during 2007-08.

c. Employment Generation Cashew generates employment in the processing and agrarian sector of India employing over 3 lakh persons with more than 95 percent of them being women. The cashew processing activity has helped in generating employment for several individuals. At present many individuals are directly employed in the Cashew processing and marketing activity. The processing activity has also ensured value addition nearly upto 50% on the raw nuts

Export and Domestic Consumption of Processed Kernels in India

Quantity (MT) Year Processed Kernels Export Domestic Consumption % of Exported Kernels to Total Processed Kernels

2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008

154034 182063 198383 217598 247331 250748 267093 279949

89155 97550 104137 100828 126667 114143 118540 114340

64879 84513 94246 116770 120664 136605 148553 165609

57.88 53.58 52.49 46.34 51.21 45.52 44.38 40.84

Conversion ratio of raw nut to kernel has been taken at 4.54 (*source CEPC)

1.2: Composition of Industry

Cashew is a highly nutritious and concentrated form of food, providing a substantial amount of energy. The cashew nut kernel has a pleasant taste and flavor and can be eaten raw, fried and sometimes salted or sweetened with sugar. It also contributes as an important source of invisible fat in the diet, being widely used in a variety of ways. There has been a growing demand for cashew in many temperate countries where the demand is increasing (Russell, 1979). The nut contains an acrid compound which is a powerful vesicant that is abrasive to the skin. The cashew shell contains 25% of this reddish brown oil, industrially known as Cashew Nut Shell Liquid (CNSL) which is a by-product of the roasting process

a. Overall Composition The kernel is considered to be of high nutritive quality and growing conditions or the variety of cashew may have an influence on kernel composition. The overall composition of the kernel is protein 21%, fat 46% and carbohydrates 25%. b. Protein Content Wide differences in the protein content ranging from 13.13 to 25.03% have been reported from various regions of India. It has been suggested that protein content be considered as one of the most important factors in future breeding and selection programs on cashew nut. The amino acid composition of kernel protein has been reported by various experts

c. Carbohydrate Content Analysis of cashew nut kernels from different regions of India have revealed that there are variations in the reducing sugar content from 1% to 3% and the non-reducing sugars from 2.4% to 8.7%. Starch content ranged from 4.6% to 11.2% and the oil content also showed a wide variability from 34.5% to 46.8%. d. Fatty Acid Composition The fat and oil content of cashew nut contributes substantially to its energy content and consists mostly of glycerides of oleic acid (73.8%) and linoleic acids (7.7%) It may be mentioned that the high proportion of oleic and stearic acid contents may limit its use in the diets advocating low energy intake. The high content of MUFA oleic however, might be beneficial in cases of bowel enteropathy. Also from the point of view of essential fatty acid requirements, the ratio of linoleic to linolenic (values for cashew nut not available) acid is considered important. Studies at the National Institute of Nutrition (NIN) have shown that cereals and pulses on average contribute 3% and 2% respectively, of invisible fat, providing 1.5% LA and 0.08% ALNA and pulses furnish

1.3% LA and 0.28% ALNA to the diet. On this basis, habitual rural Indian diets were found to provide 7% of invisible fat (both from cereals and pulses). WHO/FAO (1977) had recommended an LA intake of over 3%, the requirement of LA being around 8g/capita/day. In rural diets, the invisible fat present in cereals, pulses and milk can meet about 66% of the daily LA requirements. To furnish the remaining 33%, different amounts of vegetable oils would be required from various sources of nuts and oil seeds. In the Indian context, figures available for two edible oils furnishing the recommended intake of LA works out to be 11g or 4% in the adult diet, wherein the fat intake of total calories would be 11% or 30g. The judicious use of cashew in the diet in suitable proportions so as to enhance dietary quality with respect to fat and protein should therefore be possible. Owing to its high protein content, it could be used along with cereals/staples and pulses in small amounts in association with vegetables to improve the dietary profile. The level of oil present in the cashew to ensure energy density in the diet appears to be adequate, but whether it can meet with the diets LA requirements needs to be studied further. e. Vitamin Content The vitamin content of cashew nut kernels is 0.5 to 1.4 mg per 100 g of thiamin and 0.58 mg per 100 g of riboflavin, a good proportion of vitamin E and traces of other vitamins are present in cashew. It may be mentioned that the vitamin E content of cashew nut could be a beneficial factor, in view of the wider use in the diet of the elderly and those who run the risk of cardiovascular disease. Vitamin E is also a powerful anti-oxidant and its role in lipid metabolism has been well established. Fats containing a lesser amount of tocopherol in the unsaponifiable fraction have been reported to be more atherogenic as compared to most crop species containing higher concentration of tocopherols. Thus, the amounts of cashew to be incorporated and the economic feasibility in utilizing for local diets need to be critically examined. Cardiovascular diseases which affect individuals mostly around middle age are common among the more affluent. The use of

small amounts of cashew nut in the diet could therefore be a deterrent in controlling cardiovascular ailments. f. Mineral Content The mineral content of cashew kernel appears to be minimal as compared to the higher mineral content of the cashew apple, especially the high Vitamin C content (240 mg). Most citrus species such as orange have only 45 mg of Vitamin C. However, the cashew apple is yet to be utilized on a large scale to alleviate Vitamin C nutrition requirements in the tropical countries where the crop is grown. Cashew is also one of the few sources of phenols (contains about 60% of anacardic acid by weight). This acid is responsible for the vesicative activity of the shell liquid extract and can cause acute dermatitis. It is therefore essential to ensure that as little contamination as possible of CNSL should occur during processing of kernels. In traditional medicine however, this extract has been used successfully. The high price of cashew kernels will certainly stimulate the planting programs in various countries. Since the cashew nut market competes with other nuts, there is bound to be increased production of all nuts. The present cost of processing cashew is much higher as compared to other nuts which allow little flexibility in cashew kernel prices. It is therefore necessary to develop more efficient and cost-effective processing systems for cashew.

1.3: Major Players

The commercial production of cashew seed is done in more than 32 countries of the world. The seed generally prosper in the hot and humid regions of the earth near the equator like in central and South American zone, India and oceanic zone and African zone. The world total produce in the context of cashews is around 22.5 lakh tons per annum. Vietnam is the largest producer of raw cashew followed by India and Brazil. India dominates and leads the cashew kernel production list. The total area in the world under cashew cultivation figures up to 35.1 lakh hectares. The world consumption of
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cashew has ever been rising with time. In 1955 the world production figures for cashew consumption was 125000 tons which rose up to around 1 million tons in 1995 and now it is almost same as the level of production. The major cashew consuming countries in the world are

United States of America European Union India

The trade pattern in cashew in the world suggests that 8 to 9 million cartons of cashews are traded in the world in a year. The main countries that constitute the world cashew exporting list are

India (4.5 million cartons) Vietnam (2.3 million cartons) Brazil (1.75 million cartons) Tanzania Ghana

India contributes to over half of the world cashew exports. Vietnam gives a tough competition to India in the world market as it is the largest cashew producing nation of the world but still India is ahead in this scenario. Vietnam plans to take over India's dominance till 2010. Due to a large consumption level of this seed in the world, there is a long list of cashew importing countries, dominated by United States. Following are some of the major countries in that list

United States of America (4.5 million cartons) European Union (2 million cartons) China (0.75 million cartons) United Arab Emirates Japan

1.4: Industry Size

Cashew is indigenous to South and Central America and was discovered by Portuguese missionaries in the 15th century. There is a growing market for cashew in Europe and USA, with new market opening up in the other parts of the world, for example, Russia and Japan. On the other hand, Vietnam is currently increasing their supply of cashew nuts for the international market. Total area under cashew in the world is 30.54 lakh hectares with production of 20.34 lakh tones in 2002-03. At present, Vietnam is the single largest producer (28%) in the world production, followed by India (25%), Nigeria (10%), Brazil (8%), Tanzania (6%), Indonesia (4%)(Samyukta Karnataka,2005). Cashew area and production in Asia during 2000 accounts for about 33.40 percent and 40.98 percent of global area and production respectively. Cashew production takes place mainly in the Central and South American Zone, Asia, Oceanic Zone and African Zone. There are 28 countries now involved in the production of cashew. The major producers of raw cashew nuts in Asiatic Zone are India (4.5 lakh tonne) and Vietnam (1.4 lakh tonne). The total area under raw nut production is around 1.8 million tonne from an area of 4.00 million hectares. The productive area is likely to be around 3.6 million hectare. The average global productivity is only around 500 kg per hectare. The Asiatic and African zones together produce 1.256 million tonnes of raw nuts (68%) of the global production, of which 0.338 million tonnes (27%) take part in kernel trade, 0.246 million tonnes takes part in raw nut trade and the remaining 0.72 million tonnes (53%) goes for local consumption. The unprocessed raw nuts export amounts to 0.246 million tonnes mainly from India. The cashew industry is an important foreign exchange earner for many African countries and also a major source of jobs and income earner in rural communities. In Mozambique alone, cashew growing and harvesting is a primary source of income for estimated 9.4 lakh poor small scale farming families. Among the African countries, Tanzania is the worlds second largest producer of raw cashew nut. The other major exporters from Asia are Indonesia and China. The major consuming countries of cashew kernels in the world
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are U.S.A. accounting for about 31.25 per cent of the world cashew consumption followed by EU (22.73%), India (19.89%), China (10.23%) and Japan (2.84%) during 1999-2000.India is the largest producer, processor, consumer and exporter in the World, accounting for about 26.40 per cent and 46.09 per cent of the world output and export respectively during 2003-04.It is an important plantation crop in wasteland development programme due to its utility in soil and water conservation and to buildup of balanced ecosystem. In India, nearly 40 lakh tonnes of cashew apple is being available, but major portion is being wasted. About 50,000 tonnes of fenni is prepared from 72,500 tonnes of cashew apple in Goa. Apart from the economic significance; cashew industry has the potential leading role in the social and financial upliftment of the rural poor.

1.5: Growth Prospects

The study makes an attempt to assess the overall profile of the Indian cashew industry, particularly in terms of production and exports. The results indicate that cashew production in India has been fluctuating during the recent years. It is evident from the study that Maharashtra produces more cashews compared to the other states in India, as its average productivity and the area under cashew cultivation are more than that of the other states. The Indian cashew kernel is highly appreciated in other countries for good quality, taste, and appearance; and is consumed in more than 60 countries across the world. The United States, the United Kingdom, the Netherlands, Japan, Australia, Canada, Germany, Hong Kong, Singapore, New Zealand, and the Middle East countries are the major export markets for Indian cashew nuts. In spite of its significant growth, the cashew industry in India has been suffering from poor quality of cashew grown in some states, which is mainly due to wrong harvesting technique, unsatisfactory drying of the nuts and inadequate storage and warehouse facilities for storing dried cashew nuts. Thus, the paper suggests that the cashew industry needs certain incentives to achieve a higher growth rate of production as well as exports in future.
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1.6: Challenges faced by the Industry

The cashew industry is striving to become a major export of the country by 2020, is the topic at the Vinacas International Customer Conference 2011 held by the Vietnam Cashew Association (Vinacas) in Ho Chi Minh City. However, this goal seems, according to many participants, an impossible mission. Bottlenecks at input and commerciality Vietnam was the worlds largest cashew nut exporter from 2006 to 2010. In 2010 alone, Vietnam exported 198,000 tonnes of cashew nut worth US$1.135 billion, accounting for more than half the worlds export volume. An official from Vinacas forecast that the industrys export turnover was expected to reach US$1.4 - 1.5 billion in 2011, representing a year on year rise of 30 percent. At the conference, Vinacas announced the objective that Vietnams cashew industry will retain the worlds number one exporter position through 2020. However, this target is said to be unfeasible because the cashew industry is facing numerous difficulties. Mr. Nguyen Thai Hoc, Chairman of Vinacas, admitted that biggest difficulties facing the cashew industry now are the unstable supply source of raw materials for export processing, and the shrinking cashew acreage, productivity and output. To ensure export targets, Vietnamese cashew nut processors have to import raw cashew nuts for processing from other nations. The Vietnamese cashew industry is also facing a serious shortage of labourers for shelling and processing, while manual workers account for 30 to 40 percent in this industry. Whats more, products are not diverse, the domestic market is weak, input costs are rising, technologies are backward, and business scales are small. In Binh Phuoc province, dubbed the capital of the cashew industry, farmers are cutting down cashew trees to grow crops with higher economic value like rubber trees, said Mr. Bui Van Thach, Vice Chairman of Binh Phuoc Province Peoples Committee. Specifically, the province now has 155,000 ha of cashew trees, of which 144,000 ha are at the stage of commercial production with an annual output of 140,000 tonnes. However, he added that according to the cashew industry development strategy of this province for the 2010 - 2015 period and vision to 2020, the acreage will be shrunk from the current
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155,000 ha to 150,000 ha in 2015 and only 137,000 ha in 2020. Attending specialists pointed out that the cashew industry will be unlikely to achieve the target if it fails to fix existing problems. Mr Luong Le Phuong, Deputy Minister of Agriculture and Rural Development, said if Vinacas is unable to solve current difficulties, objectives for the next 10 years may be out of reach. He explained that since deeply processed cashew nuts account for only 3 percent of export volume, the target of 30 percent of deeply processed cashew nuts will be a huge challenge if currently inadequate machinery and equipment are not upgraded. Mr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), said the economic value of cashew trees is not as high as that of other popular industrial crops in Vietnam like coffee, rubber and tapioca; thus, it is not a surprise to see a decline in acreage. This is a huge challenge for the cashew industry development strategy through 2020.

1.7: Other major developments in the industry

India is one of the largest producer, processor and exporter of cashew in the world. It has tremendous potential of production and marketing especially export to other countries. It is termed as White Gold to describe its importance in the economy. Hilly region of Kolhapur district and its environment is suitable for cashew production. The cashew has significant importance in the life of hilly region people of this district. Thus, cashew-nut industry can play very decisive role in the development of the hilly region. The Kolhapur district is recognizing as a hilly region area district. The thousands of people are living under poverty in the hilly area of the district. The suitable environmental conditions for cashew cultivations are the natural gift for these people. The presence of cashew has made strong positive impact on the life of the hilly poor people. The development of cashew-nut industry in this region leads the socio-economic development of hilly area of the district. Therefore cashew is the WHITE GOLD for the hilly people. The present study will focus on the challenges and opportunity before the cashew-nut industry of hilly

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region area and explore the different means how the cashew-nut industry would become the instrument of change in the development of hilly region people.

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2. Company Profile
2.1 Background and Inception of the Company: Bola Surendra Kamath & Sons is a prominent name in the field of cashew export business. For more than half a century, Bola family from Mangalore is continuing its export business throughout the world. In fact, this business was initially started when India was under the British rule. Three brothers initiated the establishment of Bola Surendra Kamath & Sons. These people were highly energetic as well as experienced. They put hard labor in order to give their company the status of a global cashew nuts supplier. Presently, Bola Surendra Kamath & Sons has acquired ISO 22000:2005 certifications. They are mainly associated with the cashew export business as well as with the export business of coffee beans. They are acquiring popularity from across the world for their quality products and customized services. There will be nothing wrong if we say that in recent times, Surendra Kamath and Sons is considered to be one of the most recognized cashew nuts and coffee beans exporters from India. For maintaining this position they strictly follow world class Food Safety Management Systems and thus ensure quality services to their clients.

Bola Raghavendra Kamath He is one of the pioneers who introduced cashew industry in Mangalore. In early 1940s Bola Raghavendra Kamath started cashew trading. Thereafter, in the year 1958 he took initiative to set up a cashew factory in Karkala. Before this, no cashew factory was ever established in the rural area. Soon, this cashew industry emerged as the top cashew manufacturers in the state of Karnataka.

Bola Surendra Kamath Bola Surendra Kamath studied B.E. in Mechanical Engineering from Manipal Institute of Technology. He joined cashew industry thereafter. There will be nothing wrong if we say that Mr. Kamath was one of the first technocrats to enter the cashew export business. In order to bring positive changes in the cashew processing services, he introduced several innovations. He also studied cashew industry related several government regulations. In
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the true sense, Bola Surendra Kamath ensured compliance of the regulations in our industry.

Bola Damodar Kamath Bola Damodar Kamath is an architect by profession. In 1994, he graduated himself from the Manipal Institute of Technology, Manipal. Then he got involved with some Government projects on contract basis. Mr. Kamath pioneered in small houses construction at comparatively low cost for the poor people. Added to this, he also looked after the construction work of a few Government buildings and office premises. In 1996, Bola Damodar Kamath started his profession as a management trainee. During that time, he undertook the job of marketing CNSL (Cashew Nut Shell Liquid). Within the span of only 2 years, he succeeded to double the cashew nut shell liquid production of the firm. He also contributed in the development of cashew export business and bagged orders from one of the leading purchasers in Europe.

Bola Rajesh Kamath Bola Rajesh Kamath has done his graduation in business management from Dr. NSAM First Grade College, NITTE and in the year 1995, he joined his cashew export business. Initially, Mr. Kamath took up the task of expanding the cashew industry. For this purpose, he pursued institutional marketing and tried to keep direct relationship with the top cashew consumers in the country. Bola Rajesh Kamath was also associated with his firms financial matters. With his hard work and unquestionable dedication, he succeeded to bring professionalism in the area of his organizations financial management. Mr. Kamath also took initiative and introduced inventory management and accounting. In the year 1998, he created a website to promote his business enterprise. There will be nothing wrong to say that during that time, there were very few firms who had their own websites.

Bola Rahul Kamath In the year 1997, Bola Rahul Kamath did his graduation in Mechanical Engineering from Manipal Institute of Technology, Manipal. He was a brilliant student and stood second in
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the university. Thereafter, Bola Rahul Kamath did his MBA from T.A. Pai Management Institute, Manipal. In this examination also he secured the first rank. Mr. Kamath also got certification in International Business from Saginaw Valley State University, Michigan, USA. Throughout the student life, Bola Rahul Kamath maintained an excellent academic record and so was honored with the Best Outgoing Student Award from the Manipal Institute of Technology. Apart from this, Mr. Kamath has recently awarded for the Best Outstanding Young Personality from the Jaycee. Finally, after completing study he joined the cashew export business. Since then he got actively associated with cashew processing services, new market penetration and direct marketing of products

2.2 Nature of the Business Carried.

The nature of business in this industry is varied and is challenging to any other industry. Due to high diversification in the operation it is a strategic task and approach to the nature or composition of resources to the nature of contracts demanded by different clients. However one must understand that the nature of business is not just the nutshell of the overall operation but also the opportunities of further diversification into the respective areas. The unique coffee processing and packaging procedure highlights the fact that Bolas never compromise with their product quality. With the aid of their stateof-the-art facility near Mangalore, they have succeeded to bring a remarkable positive change in the field of cashew export business.

At Bolas 90% of the entire workforce are women. All of their employees are trained and they make sure that every bag of processed cashew comprises natural goodness. Usually, while handling the procedure, all their employees wear protective gear.

The factory is situated at Karkala Taluk, which is approximately 30 kilometers away from Mangalore port. There is no doubt in the fact that they are one of the very few cashew-processing units in the country. For their quality cashew processing services and cashew packaging services we are certified with ISO22000 norms. This confirms that we have Food Safety Management Systems as per the best international practices.

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Access to some of the best coffee growing plantations and given to choose among them Impeccable state-of-the-art infrastructure that facilitates the processing of large quantities. Well planned supply chain. Customer centric pricing and procurement model. Various modes of packaging available. Above all, the trust of its renowned long term customers. Offer ready goods in store basis in major European ports Offer goods on price to be fixed basis on buyers call.

2.3 Vision Mission and Quality Policy.

Vision:To establish themselves as the most credible partner to their customers and to become an emerging forces to reckon with in the Indian IT arena.

Mission: Bolas strives to enable their customers with timely, accurate and holistic business information through innovatively simple IT solution offerings. Bolas regard each opportunity as a great task entrusted on them and strive to make the projects a thorough success Bolas present a memorable journey for our customers in every engagement, while maintaining high levels of ethics and integrity Quality Policy:The cashew nuts and coffee beans are checked thoroughly so as to assure their quality. Their products are manufactured keeping in par with CEPCI and AFI standards. They use blowers and sieves that help in keeping the microbiological and chemical contaminants away. Then the metal detector is used so that ferrous and non-ferrous metals are not
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present. The final products are free from any harmful ingredients and are as per the standards set by HACCP.

2.4 Product / Service Profile.

Sr. No. 1 2 3 4 5 Product Cashew Coffee Palm Oil Runutz Royal

Cashews The Anacardium occidentale and the Cashew tree are considered to be the natives to the northern side of South America. However nowadays they are also found in several tropical areas. The English name "Cashew" has been derived from the Portuguese name caju that has come from the Tupi-Indian word "acaju".

In Spanish speaking countries of Latin America cashew is called Maranon, whereas, in Venezuela cashew is known as mere. It is said that viz (the state of Maranhao in the northern part of Brazil) is one of the first areas, where this fruit was seen. Cashew is considered to be a premier crop that originally belongs to Brazil and contributes a lot in the rural economy.

The tree establishes itself easily and by men and animals may have increased its growing area even in pre-historic times. It is likely that Spanish sailors have taken the nut to Central American countries and certain that the Portuguese brought the cashew to their territories in the East Indies and Africa. It may be assumed that cashew came to Goa, Portugals main settlement in the East Indies at a time, between 1560 and 1565. It is believed that the Portuguese brought the cashew to India, between 1563 & 1578.

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Presently people will find a number of companies that are engaged with cashew processing services, cashew packaging services and cashew export business. Bolas is one of such cashew nuts exporters.

After India it was introduced into South-Eastern Asia and, according to Agnoloni and Giuliani (1977), it arrived in Africa during the second half of the XVI century, first on the east coast and then on the west and lastly in the Islands. The cashew later spread to Australia and some parts of the North-American Continent. Finally, its present diffusion can be geographically located between 31 degree North latitude and 31 degree South latitude, both as the wild species and under cultivation. Some make from the apples a beverage, though the fruit itself is scarcely edible, having an unripe flavour. At the base of the fruit hangs a sort of nut, with the shape of a kidney. As to the kernel therein, it is excellent to eat.

Coffee For the last few decades, Bolas has maintained its position as one of the renowned global coffee exporters. It is relied upon by a large number of astute buyers. Bolas mainly store coffee in warehouses in Europe and offer that same product to customers "In Store" basis. This no doubt helps the customers to approve samples before placing their orders. Bolas usually offer coffee on "Fixed Price" basis. The purchasers can fix the price at any time on the basis of International Exchanges. Added to it, they offer different types of coffee packaging services as per the customers requirements. Recently, for these packaging services the Coffee Board of India commended Bolas with the Second Biggest Exporter Award. Situated in the heart of the rich coffee growing country, Bolas has proved its expertise from select plantations, aroma, rich taste to quality. Palm Oil Around three thousand years back, palm tree was originated in Africa. The oil that is extracted from the fruit is known as palm oil, whereas, the liquid fraction of palm oil is known as Palmolein. Since a long time, this Palmolein is popular for its safe use.
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However, after 1960, when Malaysia undertook its production, Palmolein started gaining more popularity. In the year 1984 palm oil got a remarkable position in the field of international export trade in fats and oils. It is second only to the soybean oil production. Palm oil processing and palm oil packaging services related different research works were done in the laboratories in Australia, United States, Europe, Canada, Japan and many other developing countries. The result of these activities were thereafter published in different journals, such as, the New England Journal of Medicine, American Journal of Clinical Nutrition, the British Journal of Nutrition, Nutrition Research, the Journal of Lipid Research, Cancer Research and Artherosclerosis. Apart from this, the Malaysian Palm Oil Promotion Council along with the Nutritional Advisory Committees for Europe and America and the International Nutrition Advisory Council produced a number of reviews on health and nutrition characteristics of palm oil. For the biological value of carotenoids, the red palm oil could prevent vitamin A deficiency. The tocopherol activity of palm oil has also a nutritional significance. It is said that vitamin E can reduce the coronary heart disease related risks as well as the possibly of cancer. In some of the countries of Latin America, palm oil is used extensively for the purpose of human consumption. In India, there are several shops that sell a huge quantity of palmolein. Each year around 3000 tonnes of palmolein is being received from the India Government, from which 1/3 is being sold through the fair price shops. It is assumed that there are 2 reasons for which common men give more preference to the palmolein rather than groundnut. These reasons mainly include price and health. There is no doubt in the fact that both of these factors play important roles in the choices of modern men. Nowadays not only price, but health also matters a lot to the consumers. Thus with the rapidly changing choices of the customers, palm oil export business is undergoing a remarkable change.

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R U Nutz Taste of Cashew has never tasted so good. All the people who have tasted Bolas R U Nutz" range of value added products have liked it. They offer a wide variety of exotic flavors for their salted and typically roasted products Some of the flavors Bolas offer include the following: 1. Honey Crunch 2. Chaat Twist 3. Tomato Frenzy 4. Blissfully Salted Why Runutz 1. Exotic Flavour you have never tasted before 2. No added preservatives/no added colour/no Artificial Flavour 3. Dry roasted without using oil 4. Attractive and innovative packing to ensure freshness. How to go Nutz 1. RUNUTZ has exiting flavour and is ideal snack to munch 2. Give children RUNUTZ and say "no" to just food. Put some in your children's Tiffin every day and see the difference. 3. RUNUTZ is ideal to munch while watching TV or film. 4. RUNUTZ helps you fight the stress. If you have long working hours, take a break and munch some nuts. It makes you feel full and energetic.

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2.5 Area of Operation

Bolas are exporting cashew nuts and coffee beans to 38 countries across the world. Their products have been able to gain the trust of the honored clients. The cashew nuts and the coffee beans are packed without using any preservatives. The taste, aroma and quality are the features that encourage the customers to buy cashew nuts & coffee beans. Bolas customers place orders in bulk that talk about the quality of cashew nuts and coffee beans as well as their reliability Their main motive has been always delivering genuine quality products. All workers wear protective gear while handling the cashew nuts and coffee beans. As these are agricultural products, extreme care is taken of the nuts and beans so that the final products are free from all the contaminants and are safe to consume. The taste of cashew nuts and the aroma of coffee beans are truly irresistible.

2.6 Competitors Information

The cashew market is been highly competitive with increase in number of cashew companies. But bolas has been facing fair competition from the domestic companies nearby Karkala and Mangalore area they are

S.r. No. 1 2

Competitors Mangalore cashew industries Costal company cashew

Address Mangalore

trading Mangalore

3 4

Karkala cashew products Aaco industries

Karkala Moodbidri

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2.7 Infrastructural Facilitates

Bolas has a well-established infrastructure with all the necessary machineries. The cutting machineries are hand operated so that the cashew nuts are grated carefully without any damage to their shape. The research & development team keeps an eye on the quality of the products and puts each and every minute innovation that is needed for the betterment of the quality. Out of total workforce, 90% are women. They also have a spacious warehouse, where the final packed products are kept for future exporting. The packing are vacuumed so that there is no biological agent present in the final products.

Delivering quality demands an infrastructure that is contemporary and state of the art. At bolas we recognize this fact and hence constantly strive to update our facilities where by the quality is not compromised on. As one of the few cashew processing and packaging companies in the country, Bolas are renowned for our modern infrastructure. Their workforce, comprising 90% women, is provided with finest protective gear for safety as well as to retain the natural goodness of the product. Their processing and packaging facility is certified to have food safety management system in accordance with ISO 22000:2005 norms.

2.8 Achievement / Award

Some of the hall marks to bolas coffee business is:

Sr. No. 1

Achievements & Awards Coffee Exports Awards for the years 2005-06 2006-07 2007-08

2 3

Members of Federation of Indian Export Organization State Export Excellence Award 2006-2007

Trading House recognized by Govt of India

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2.9 Work flow model (End to End)

Work flow model refers to the glimpse of the entire organizations working. The work flow model gives an overall idea on how does the entire company organize itself and execute its operation. It is through this model that one can see the key areas of operation or the major roles played by each of the departments in the core activities.

Drying of cashews

Roasting

Cutting

Hot Chamber

Peeling

Grading

Packing

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2.10 Ownership Pattern

Bolas is presently a private ltd company. It was founded by Bola surenrda kamath and there by the business is continued by 3 sons as partners. It is purely a partnership firm Mr. Damodar Kamath Mr. Rajesh Kamath Mr. Rahul Kamath

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3. McKinseys 7 S Model
Mckinseys Model is famously known as the seven S model which comprises of the following Structure Skill Style Strategy System Staff Shared value

Lets look at each of the elements specifically Structure: The way the organization is structured and who reports to whom.
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 Style: The style of leadership adopted Systems: The daily activities and procedures that staff members engage in to get the job done Strategy: The plan devised to maintain and build competitive advantage over the competition Skills: The actual skills and competencies of the employees working for the company Staff: The employees and their general capabilities. Shared values: Also called super ordinate goals when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic. Placing Shared Values in the middle of the model emphasizes that these values are central to the development of all the other critical elements. The companys structure, strategy, systems, style, staff and skills .The original vision of the company was formed from the values of the creators. As the values change, so do all the other elements. Strategy, Structure, and Systems can be considered as the hardware of the success while Style, Staff, Skills, and Shared Values can be seen as the software. Companies in which these elements are presents are usually more successful at implementation of strategy.

Structure
An efficient and effective formal organization is one which facilitates the contribution of individuals to the attainment of enterprises objectives and aids the accomplishment of objectives by people with minimum unsought consequences to cost. Organization is regarded as skeleton prints of how the manager will assign the functions and link them together. A sound organization contributes greatly to the continuity and services of the enterprise. Organization is one of the fundamental functions of management. It involves various departments of divisions, each performing a separate function such as production, and distribution and so on in a coordinated manner.

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Organizational Structure Rahul Kamath Damodar Kamath Rajesh Kamath

Marketing Department

Processing Department

Finance Department

Marketing Manager

Manager

Accountant

Workers

Workers

Workers

Departments
Marketing: Bolas marketing office is located is Kedinje From there only all regular activities related to marketing are controlled. Bolas also deals in the marketing and distribution of products from its own plant as well as the import products. Distribution is carried out through the cooperative network which covers almost the entire country. Marketing also covers promotional activities like providing onsite training facility and other social benefit scheme. Personal & Administration Functions Staff transportation, buses/cars, shift schedules, payment of bill Placing indent for stationery and its distribution Raising indent for furniture/office equipment Budget preparation
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 Procurement & supply of maintaining records Office and building maintenance. Various jobs assigned above normal working. Materials Department

Materials

Stores

Purchase

Stores play a vital role in the functioning of the organization. All departments are in the direct contact with the stores for their smooth functioning. The most important functioning of the stores is that to provide regular service to production and other department for their continuous smooth operation. Maintenance of stores and its handling should be given importance because investment made in stores is huge and articles worth lakhs are kept in stores .A systematic and proper control of store keeping functioning are essential for ensuring discipline ,availability of articles at required time adequate storage in store keeping records. Major functions of stores department are Receiving of material and recording of receipts. Arranging inspection and proper storage and preservation of receipts. Issue of storage items to user departments Preparation of various report

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Receipt and inspection of material

The raw material are received from two sources, that are 1) Receipt from external sources Receipts of material from the outside suppliers .raw material are received against the orders placed or by local purchase from local vendors. 2) Receipt from internal sources Raw materials are received from the consumer departments where the item maybe of no use

Strategy
Every organization formulates and follows a set of strategies which are decided by the top management. Some strategies have a higher privilege or rather say are of more importance. Managerial strategies Various managerial strategies are adopted by Bolas to maintain the efficiency and productivity. First of all selecting the best available technology of a plant, it is necessary to maintain the high standard of operating efficiency on day to day bases by monitoring and control of various parameters affecting the plant efficiency. The parameters affecting efficiency in process plants are: Loss of materials at various process stags starting from material receipt to product reaching destinations which needs to be identified quantified and prevented. Capacity utilization Plant operation and process control. Cost reduction progress Quality control systems Energy efficiency Maintenance management practices Waste reduction Resources conservation and Re-use Environment and safety management
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At Bolas the above parameters are monitored on day to day basis through daily production meeting at their separate plant as an essential management function. Out of the above parameter one parameters i.e. Cost Reduction Programs taken as an example of strategic management style for the specific paper. Bolas has been able to trim cost wherever possible to maintain low cost of production and achieve better efficiency in the process. In fact this aspect cover most of the others control parameter also.

System
System refers to the rules, regulation and production concept both formal and informal that complement the organization structure. Here bolas follows the informal and legal procedure in taking the orders from the customers. For the regular interaction with subordinates and line persons, the company people go for both formal and informal interaction. Lean manufacturing is the identification and removal of waste. There are 5 types of wastes in manufacturing firms, which increases the need for working capital. The 5 types of wastes are: Over production Processing time Defects Inventory Transportation

Cashew Processing Stage 1 Drying Raw cashew nuts are properly dried in order to remove excess moisture. These raw nuts are usually kept in open yard and are dried in sun for 2/3 days. The nuts are rolled over on regular basis in order to ensure both sides drying. After this procedure is over, the dried cashew nuts are collected and thereafter packed in bags for the purpose of long storage. Bolas is one of the popular cashews processing services provider, which follows the same procedure for drying the cashew nuts.
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Stage 2 Roasting The second stage of processing is Roasting, Here, they heat the cashews with high pressure/temperature steam. The roasting time depends upon the characteristic of raw cashew nuts

Stage 3 Cutting Raw cashew nut has a unique kidney shape. Moreover, the outer shell of raw cashew nut is very hard to crack. The shell contains a liquid called CNSL, which can be very dangerous if not properly handled. Bolas use a specially designed hand and leg operated cutting machines to cut raw cashew nuts. The operations are predominantly manual. The raw cashews are carefully cut to ensure that, there are minimum broken

Stage 4 Hot Chamber In this stage, cashew kernels are heated to 70-85 degree centigrade. The main purpose of this heating is to eliminate moisture between cashew kernels and adhering test. They use a specially designed chamber to heat the cashews so that, the temperature control can be attained accurately.

Stage 5 Peeling Cashew Kernels are blanched using a small knife. The adhering test (husk) is carefully removed ensuring minimum damage to the cashew kernels. Due to unique shape of the cashews, the process is mostly manual.

Stage 6 Grading Cashew Kernels are graded according to their size, colour, appearance etc. There are
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more than 25 grades of cashews. These grades are standardized by CEPCI

Stage 7 Packing Bolas offer a wide range of cashew packaging services in order to cater to the needs of the various customers. Some of their packaging options include the following:

Bulk Packing 2X25 lb flexi pack per carton 1X50 lb flexi pack per carton 2X10 kg flexi pack per carton 1X20 kg flexi pack per carton 2X25 lb tins per carton 2X10 kg tins per carton Bolas also offer various range of packing sited to varying needs of the consumers. They offer following packing options

Retail Packing 500 gm per pouch 250 gm per pouch

Staff
Every organization needs to have an efficient workforce and has to select the right person for the right job. Every organization differs from other. Development and maintenance of adequate manpower with needed skills and growth potential depends upon the nature of selection, methods employed, procedures adopted and the efficiency with which they are administered and executed. It is the major step in the staffing process. According to Yoder It is a process to discover the sources of manpower, to meet the requirements of the staffing schedule and to employ effective employees for attracting that manpower in adequate numbers to facilitate effective selection of an effective workforce. In Bolas there are nearly 150 workers. In which Each worker has unique capability to the job
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perfectly and they are specialized in one or the other area. In bolas each department has been divided into separate teams. And they have specific targets which they must complete within a stipulated period of time.

Skill
Communication is considered as the life blood of business. Bolas follows a different communication pattern. Few years ago, the bolas used to follow the formal communication channel wherein the interaction would be from top to bottom. But in recent years the informal chain of communication has been gaining importance. Nowadays majority of the companies follow the two way communication style. Any employee can directly talk to the departmental head or any other employee without a barrier. Every organization follows a authority responsibility principle which is of utmost importance in this modern world and also the main aspect of the organization. As the responsibility is delegated, some respective authority is also delegated along with it so that smooth functioning of the business takes place. So by using informal communication pattern bolas has been successful in functioning the business smoothly. Bolas also gives onsite training to the employees in order to do the work properly. Focus of the system in the company would be to promote teamwork and culture, achievement and excellence in the organization.

Style
Style is nothing but an organization culture, development of which is continuous and improving each year. The employee shares a common way of thinking and behaving in an organization. They give due respect to women. Employees are very professional in their dealings. The Managers go for achievement of organizational goal, motivation to subordinate and quality of the work. The culture followed in bolas is open culture where. The superior acts on the criticisms. Superior listens to complaints. Superior follows up an employee opinion. The style of functioning of bolas is open and participative.

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Shared value:
In bolas workers share the same guiding values. Values are things that one strives for even if they were demonstrably not profitable. Values act as an organizations conscience, providing guidance in times of crisis. Identifying corporate value is also the first step in defining the organizations role in the larger community in which it functions. Shared values are what provoke trust and link an organization together. Shared values are also the identity by which an organization is known throughout its business areas. Thus values must be stated as both corporate objectives and individual values. Every organization and every leader will have a different set of values that are appropriate to its business situation. Shared values are Mutual respect, unity and excellence Mutual Respect Ever ready and flexible to the customers need Commitment, dedication and persistence Customer focus through Excellence Synergy

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4. SWOT Analysis

SWOT Analysis Framework

Environmental Scan

Internal Analysis

Extenal Analysis

Strength

Weakness

Opprtunity

Threats

Strength
Highly skilled labor in all steps of manual processing Bolas has high skilled labor in all 7 stages of manual processing of cashew as well as coffee and other products. In bolas more than 90% of the labors are women and each labor is highly skilled in a particular process of production. This helps bolas in achieving high productivity along with good quality of products. And there will be very less chances of damage. And it also helps in making the production faster.

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 High quality cashew nuts Bolas import cashew from African countries so this makes their quality of cashew to be high. By importing cashews this makes them to cut off their one process of production i.e. drying because its been already dried. This makes them to produce high quality cashews and also give tough competition to competitors Tremendous growth of processing capacity in a matter of very few years Bolas growth has been tremendous over the last few years. Before bolas used to go through the processing manually. But as time passed they started using machinery which made their processing capacity to grow. Use manual cutting technology usually result in better quality Bolas apart from using machinery for processing they also use manual cutting technology which results in better quality i.e. because the whole process of cashew cannot be done by machines some process needs to be done manually i.e. the shell of the cashew will be hard and also because of the unique shape of the cashew it becomes difficult for them to use them through machines so this process is being done manually which results in better quality. Effective distribution of work in the company In bolas the distribution of work is being done effectively. The main purpose for their success is there will be informal communication between superiors and subordinates. This makes the subordinates to communicate freely with the superiors. And regarding distribution of work each individual will be assigned a particular task and their target will be to complete it with the stipulated time.

Weakness
Shortage of domestic cashew production to fulfill processing capabilities There is a shortage of domestic cashew production because cashew is facing tough competition from rubber so most of the people are shifting their business from cashew to

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rubber. This is why bolas is having shortage of domestic cashew to fulfill processing capabilities. And thus they go for import of cashews so by this cost will increase. Dependence on imported cashews Due to the shortage of domestic supplies of cashews bolas depend heavily on import of cashews from African countries this is one of the weakness of bolas. In future if there is hike in import duty than bolas will face huge loss.

Opportunity
Further market development for byproducts Bolas has market development for byproducts because its main business is cashew production and in this business there no such thing as waste. Each and every part of cashew is useful for one or the other thing and the byproducts comes from cashew is useful to make oil i.e. after processing stages the waste of cashew will be given to extract oil from it. And after that those waste are being brought back to bolas for using them to heat the cashews. Employment opportunities The industry provides a great number of jobs in very poor areas where no other opportunities are to be found. Thousands of jobs, local economic development near the factories bring tremendous social impact to the lives of many. Thus, the opportunity to commercialize and sell the cashews as an activity that is socially responsible and that contributes to alleviate poverty. Increased income Increase in income may increase demand for better nuts.Thus augmenting market potential. Bolas not only produces cashews it also has products such as RU NUTZ, Coffee, Royal, these products can be suitable for people who demand for better products so this can be an opportunity for Bolas.

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Threats
Unstable and unpredictable weather One of the main threats to bolas is the weather which is unpredictable. One of the main processes of cashew is drying and it is the first process in production of cashew. The cashews must be dried for 2-3 days if it rains then the cashew will spoil. So it is one of the main threats to bolas. Labor constraints for both processors and producers Labor constraint is also a main threat for bolas. Bolas gives on sight training to the workers and 90% of the workers are women in bolas. After giving training the workers will work for some period of time then they will leave the organization so this will be a main threat for bolas. Price fluctuations Price fluctuations are causing farmers to switch to rubber cultivation. Cashew farming is considered to have a lower social status compared to rubber production, so there is less incentive to invest in upgrading.

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6. Learning Experience
The In-plant training of four weeks gave practical insight to the working of the organization. The 7-S framework of McKinsey is a Valued Based Management (VBM) model helps in understanding how bolas is holistically and effectively organized and how it operates accordingly. Just as they say practice makes man perfect. Some of the key understandings include that without the theoretical background of the concepts understandings and working in the complex industry is difficult. Some of my learnings can be listed below as 1. Logistics and Stores Department In bolas they taught how to account the value of stock, physical stock taking, verification of stock, stores management, vendor price comparison, determining stock levels, Purchase order and delivery chalan verification. 2. Operations Department In operations department the take home experience was Classification of grades and their responsibilities, Production schedule, Wastage management and Production management, Workforce management

6.1: Lessons got from the company:

Commitment: We have to be committed to continuous improvement of all our activities. We have to supply products and services that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by our customers

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Time Consciousness: For every company, success depends on its ability to continually reduce the cost and shorten the delivery period of its products and services. It will achieve this by eliminating waste in all activities and continuously improving all processes in every area of its work.

Innovation and Creativity The success of every company is in the improvement in every activity involved in the business by pursuing and encouraging risk-taking, experimentation and learning at all levels within the company with a view to achieving excellence and competitiveness.

Trust and Team Spirit: Achieving harmony in work life through mutual trust, transparency, co-operation and a sense of belonging, which may strive for building empowered teams to work towards achieving organizational goals.

Respect for The Individual: We have to treat each other with dignity and respect and strive for individual growth and realization of everyone's full potential. This will ultimately lead to higher productivity.

Integrity: We have to be commitment to be honest, trustworthy and fair in all our dealings. We must commit to be loyal and devoted to the organization. We have to practice self discipline and own responsibility for our actions. We must comply with all requirements so as to ensure that the organization is always worthy of trust.

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Be Updated: We must be updated in new technology and other areas of our work. Being updated in knowledge is better to avoid obsolescence.

6.2: Work Profile

The role given to me in Bolas during the period of In-plant training was as follows: To visit each and every manufacturing shops to get the first hand experience about the production process and to interact with the shop heads for further details. To understand the organizing, directing and controlling functions of subordinates. To understand the material handling process in the plant To know about the customers and suppliers Constant observation of works in plant and frequent visit to the factory, etc.

Conclusion
Study covered a period of 4 weeks during that period it was found that all the practice and procedure followed at Bolas were at par with the industry standards and they comply with the legal rules and regulatory requirement. In spite of the local production of cashew in the country, the Bolas still import cashew from other countries in the form of shelled cashew, cashew nuts (prepared/preserved), and nuts mixed with sugar or honey as confectionery. The continuous importation of cashew products in foreign markets only shows that there is demand gap that the cashew producing regions can fill in the local market.

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Bibliography
Website

www.bolasindia.com www.bolas.co.in www.bolasintelli.co.in

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