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REPORT ON ORGANISATIONAL STUDY AT KSE (KERALA SOLVENTS EXTRACTION) LTD, VEDAGIRI Submitted in partial fulfillment of the requirements for

the award of the degree of MASTER OF BUSINESS ADMINISTRATION Mahatma Gandhi University, Kottayam. By SEBIN SEBASTIAN REG.NO:

Under the Supervision of MS.MINU MARY JOSEPH (ASST.PROF.)

MARIAN INTERNATIONAL INSTITUTE OF MANAGEMENT KUTTIKANAM, IDUKKI (Dt)

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DECLARATION

I, SEBINSEBASTIAN, MBA student , Marian International Institute of Management, Kuttikkanam, do hereby declare that this report entitled AN ORGANISATION STUDY OF KSE LIMITED, VEDAGIRI , submitted in partial fulfilment for the degree of Master of Business Administration, is a record of bonafide work done by me under the guidance of Ms. Minu Mary Joseph, Assistant Professor, MIIM, Kuttikkanam. I further declare that no part of this report has formed the basis for award of any degree, diploma, associate ship, fellowship or any other similar title of recognition in any other institution.

Kuttikanam 10-09-2012

sebin sebastian

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ACKNOWLEDGEMENT
First and foremost I obliged to the Almighty who showered upon us with the blessing and gave me health and knowledge to complete this organization study successfully. I take this opportunity to express my gratitude and indebtedness to the Director, Dr. P.V Mathew, Marian International Institute of Management, Kuttikkanam. For providing guidance, help and suggestions for the successful completion of this organization study. My special acknowledgement and gratitude to Mr. Vinod Kurian, Plant Manager KSE Limited, Vedagiri, Kottayam, for giving me an opportunity do my organization study in his organization. I also express my sincere thanks to my Organization guide Mr. V V Mathew, KSE Limited, Vedagiri, Kottayam, for his help and support to complete this organization study. I also express my gratitude to my faculty guide Asst Prof. Ms. Minu Mary Joseph, MBA. Faculty, department of management studies, Marian International Institute of Management, Kuttikkanam, Last, but not the least I would like to thank our friends who were a source of support and encouragement for successful completion of the project.
Place : Kuttikanam Date :
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sebin Sebastian

CONTENTS
Chapter No. 1 Particulars Pages 5 7 8 9 10

Introduction 1.1 Objectives of the study 1.2 Scope of the study 1.3 Methodology
1.4 Limitations of the study

Profile 2.1 Industry Profile 2.2 company profile 2.3 product profile
11 19 34

Organisational structure and its chart


39

Departmental details 4.1 Finance Dept. 4.2 Marketing Dept. 4.3 Production Dept. 4.4 Quality Dept. 4.5 HR Dept 4.6 Purchase Dept. Future plans and programmes
40 49 57 63 67 73

SWOT Analysis 5.1 Strength 5.2 Weakness 5.3 Opportunities 5.4 Threa

83 84 85 86 86 87 89 90

Findings & Suggestions Conclusion Bibliography.

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INTORDUCTION
An organization is a group of people intentionally organized to accomplish an overall, common goal or set of goals. An organization ranges in size from two people to tens of thousands of people. There are several important aspects to consider about the goal of the business organization. These features may be explicit or implicit. These features are carefully considered and established, usually during the strategic planning process. Members of the organization often have some image in their minds about how the organization should be working, how it should appear when things are going well. This is generally known as its vision. An organization operates according to an overall purpose, or mission. An organizational study is the systematic and careful application of knowledge about how people as individuals and as groups act within organizations. It encompasses the study of organizations from multiple viewpoints, methods and levels of analysis. So the organization study is important for future managers. The purpose of an organizational study is to understand the structure and functions of the organization as a whole and all of its departments. The purpose of this study is to get practical knowledge of the theory studied about the various function of the organization, to understand the different departments, to study the systems, processes and procedures and get insight on organization hierarchy.
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Each and every organization has its own importance in the economic wealth of the nation. Different organization meets differ ent needs of people by effecting different product and services. As a part of the academic curriculum, each student has to undertake an organizational study to get practical exposure. This study was conducted at K.S.E Limited, VEDAGIRI. This study was b ased on th e differen t asp ects and di men sions of d ifferen t dep artmen ts of th ecompany. India is the largest milk producing country in the world with an annual yield 79 million tone. Milk and milk products have a prominent position in human life. Solvent extraction is usually used to recover a component from either a solid or liquid. The sample is contacted with a solvent that will dissolve the solutes of interest. Solvent extraction is of major commercial importance to the chemical and biochemical industries, as it is often the most efficient method of separation of valuable products from complex feed stocks or reaction products. Some extraction techniques in involve partition between two immiscible liquids, others involve either continuous extractions or batch extractions. Because of environmental concerns, many common liquid/liquid processes have been modified to either utilize benign solvents, or move to more frugal processes such as solid phase extraction. The solvent can be a vapour, supercritical fluid, or liquid, and the sample can be a gas, liquid or solid The Indian feed industry is about 35 years old. It is mainly restricted to dairy and poultry feed manufacturing; the beef and pork industry is almost non-existent. The quality standards of Indian feeds are high and up to international levels. Raw materials for feed are adequately available in India. The industry's production is about 3.0 million tons, which represents only 5 percent of the total potential, and feed exports are not very high. The feed industry has modern computerized plants and the latest equipment for analytical procedures and least-cost ration formulation, and it employs the latest manufacturing
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technology. In India, most research work on animal feeds is practical and focuses on the use of by-products, the upgrading of ingredients and the enhancing of productivity. The country has entered into a period of liberalization and this is bound to influence the livestock industry. The per capita consumption of milk, eggs and broiler meat will grow. The Indian feed industry is undergoing a very exciting phase of growth for the next decade. As time ch anged the cattle feed industry eme rg ed as a bo o min g on e and p ro duct diversification became necessity. It is hard to estimate the demand for cattle feed in our country. K.S.E Limited is the major player in this field with a significant market share. The study intends to get an overview of the K.S.Es organiza tional structure functional department and their style of working. OBJECTIVES OF THE STUDY

The objectives of the study are classified under two heads. They are : Primary Objectives To understand the working of different departments in the organization. To understand the relationship between

different departments in the organization. To understand the organizational structure of the organization.

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Secondary Objectives To study about various functions and services provided by the company. To find out the strengths, weaknesses,

opportunities and threats of the organization SCOPE OF THE STUDY The organizational structure. The communication between different departments in the organization. The interconnectedness between different departments. The working condition in the organization. PURPOSE The parameters for the need of this study are: To get a practical knowledge of the theory studied. To study about the various functions of the organization. To study the interconnectedness between the different departments

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METHODOLOGY Methodology means the source of information from which the datas are collected for the preparation of project report. In order to know about the functioning of different departments in the organization, datas are collected from both primary and secondary sources.

Primary Data: primary data is the first data collected from primary sources. Primary sources are direct interviews with various managers, employers and workmen. This face to face communication helped to know about the workmens attitude towards the company Secondary Data: Secondary data are collect from secondary some such as publications, Journals, magazines, company records, company projects etc. these data helped collect information about the companys previous position, present state and future prospects. SIGNIFICANCE The Academic curriculum provides only on outline view about theoretical aspects of the compare. The organizational study helps as to familiarize with the practical size of the organizational functions. This is an analysis is made in the study in which the theoretical aspects is compare with the actual situations. The object of the

project is to find the role of various departments in SCORPIO TILES (PVT) LTD.
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LIMITATIONS

An organizational study is always a complex and incomplete task. The major limitations of the study are: Limited time. Busy schedule of the departmental heads. There is only a limited guideline in the specified area of our project work.

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INDUSTRY PROFILE

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INDUSRTRY PROFILE
The solvent industry has achieved a phenomenal progress and at present there are 520 units having overall oil cake or oil seed processing capacity of more than 9.9 million/year. The solvent extraction plays important role in the oil industry. Solvent extraction in India was started at 1945, it had to struggle for more than 20 years to establish it. In the year 1960s there was a crisis in the coconut oil extraction industry in Kerala. After the conversion from wooden ghanis to rotaries the cost of production has increased considerably. By using the new method, there were able to extract more oil from coconut cake. Earlier 20% of the oil was retained in the coconut cake, now it has reduced to 12%. When oil industry in other parts of the country was thriving, in Kerala it was struggling. So they understood the need for modernizations of their mills. At the time Dr.P.S.Lokanathan committee setup to study the feasibility of starting new industries in Kerala, recommended the establishment of 3 solvent plants in Kerala and it was also proposed that one should be located in Thrissur itself Cow had a significant place in ancient India. Since mans many essentials were met by the cow; she was worked shipped as Gomatha. Eventually breeding of cows became one of the most profitable jobs for man. India is the country which has the largest number of cows but they produce considerably less amount of milk. The main reason is lack of nutrients. In early days, grass was considered as the main cattle feed. But now the attitude is changed. Initially cow was given grass and straw. As man became more and more civilized, he invented advanced cattle feed. As cattle feed industry flourished in the country, cattle feed started to be produced in bulk, in factories. Cattle feed industry even though had initial teething troubles due to lack of knowledge and indifferences from the part of authorities; now is in the growth phase.
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Growth in milk sector has occurred mainly through co-operative efforts. The milk collection centers started through co-operative effort and collected milk from villagers in quantities as small as liter and gradually started to provide other services to farmers, including education, artificial insemination, veterinary health support and feeding. Small farmers became prosperous, loan facilities were made available through banks, and member farmers started to share the profits from co-operatives .Co-operative society also set up their own computerized feed plant. They began to own modern computerized as well equipped milk processing plants from which they produce and market pasteurized milk, butter oil, chocolate, ice-cream from milk, sweets, which are very popular with Indian consumers. Today the feed production capacity of the co-operative society is about 0.7million tones per year. The solvent industry has achieved a phenomenal progress and at present there are 520 units having overall oil cake or oil seed processing capacity of more than 25.6 million tons per year, which included rice bran processing capacity of more than 9.9 million per year. The solvent extraction plays the important role in the oil economy. Solvent extraction in India was started in 1945. It had to struggle for more than 20 years to establish it.

CRISIS OF COCONUT INDUSTRIES IN KERALA IN 1960 In the 1960s there was a crisis in coconut oil extraction industry in Kerala. After conversion from wooden ghanis to rotaries the cost of the production had increased considerably. By using this new method they were able to extract more oil from the coconut cake. Earlier 20% of the oil was retained in the coconut cake, now it has reduced to 12%.Although Kerala produces 80% of copra produced in the country large part of it was sold to other state as copra itself and they were
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earning good profit when mills in Kerala wasnt able to get enough copra for their daily needs. When oil industry in other parts of the country was thriving in Kerala it was struggling. So they understood the need for modernization of their mills. At that time Dr. P. S. Lokanathan committee set up to study the feasibility of starting new industries in Kerala, recommended of establishment of 3solvent plants in Kerala and it was also proposed that one should be located in Thrissur itself.

COCONUT OIL MILLERS CO-OPERATIVE SOCIETY Lion share of copra went to mills in Bombay and they were able to generate good profits. To overcome the situation a co-operative society formed by name Coconut Oil Millers Co-operative Society and it was decided that this society would act as an agent of state trading corporation for distribution of copra. By seeing the performance of the Bombay group an investigation department was assigned to investigate it. Then they found out that they were using expeller mills for extracting oil and was able to reduce the oil content up to 6%. The industries in Kerala later began to follow it.

CATTLE FEED INDUSTRY From the beginning KSE Ltd marketed the buy product obtained from its solvent extraction division in the brand name of Jersey Copra Cake. Most of the progress in the cattle feed sector has come about in the past 30 years only. There are only few cattle feed units in the country especially in Kerala. The cattle industry of the state has been utilizing the indigenous raw material i.e. coconut cake, which is the residue left after the extraction of oil from copra which is mainly used as cattle feed. Coconut cake contains four to five per cent
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oil is generally used for industrial purpose and deoiled cakes is used to make mixed cattle feed. In Kerala the rotary cake was used as a cattle feed and actually this excessive oil on cakes reduced the keeping quality of the cake and also upset the digestive system of the cattle e. In foreign countries, the cattle is feed only with de-oiled cakes and according to the d airy ex perts, th e milk and fact co ntend of milk d ep ends solely on th e p rotein contend of the feed. All these factors stress the importance of having a few cattle field industry in the state. Thus in 1996, KSE Ltd. Entered the cattle field industry by setting up the new plant for manufacturing ready mixed cattle feed. During the last three decades KSE has been acting as a leader in ready mixed cattle feed industry of the country. Today, KSE Limited commands the resources, manufacture a range of livestock feed in high volumes, driven by the commitment to high standards of quality.

DIARY INDUSTRY Most of the progress in the dairy sector has come about in the past 25 years only. Till 1970, the countrys milk production increased merely by one per cent a year. But after the intensification of cattle improvement programme through artificial insemination, using sasses of exotic breeds and launch of operation flood, the production started rising rapidly from the mid 1970s. Th e transfo rma tion of India fro m a milk d eficit to a milk surplu s coun try is essentially the result of an intensive campaign launch by the Govt. and semi Govt. bodies to promote animal husbandry as a means of generating income for the landless poor.

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Many of these producers have organized themselves into cooperative under the umbrella if the National Dairy Development Board (NDDB) which had been running a highly successful animal husbandry promotion programme named Operation Flood. The private sector has now entered into this field in a big way, capitalizing on the availability of cheap surplus milk to produce various kinds of dairy products for the domestic and international market. Several dairy products like skimmed milk powder, whole milk powder, and infant milk foods of western origin are now being produced in India. A variety of cheeses, milk drinks, ice creams, pasteurized butter etc. which, were very common in this country till a few decades ago are now available in abundance in department stores of big and small cities. The main objective of this programme is to build a viable and self-sustaining national dairy industry capable of meeting the domestic demand for fresh liquid milk and milk products and competing in the international markets. THE FUTURE OF THE INDIAN FEED INDUSTRY At the beginning of the twenty-first century, India has a population of 1 billion people. Although the annual growth rate has slowed from 2 to 1.8 percent, the base is so broad that changes in population dynamics are not perceptible. The population may stabilize by sometime between 2030 and 2040 if all sections of society support family planning wholeheartedly. The purchasing power of the middle class is growing (the middle class accounts for approximately 300 million people) and food habits are also changing. The Indian economy is growing at the rate of 6 to 8 percent per annum. The livestock industry in India is the second largest contributor to gross domestic product (GDP), after agriculture, and accounts for 9 percent of the total. Consumption is likely to increase
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as follows: per capita milk from 240 to 450 g per year; per capita eggs from 40 to 100 per year; and per capita broiler meat from 1 000 to 2 000 g per year. A major change is occurring in India on the economic front. The country has adopted a model that lies midway between liberal and public sector production, but growth has been affected by the poor performance of most of the public sector units, rising government costs and fiscal deficit, and the economy has suffered. A process of liberalization was set in motion by the government and has been implemented for the last eight to ten years. This has caused India to open up and invite investment from multinationals, liberalize imports, reduce government expenditure and remove public sector businesses. It also means that the days of nationalization, unnecessary government controls and restrictions will soon be over thanks to progress in the country's economy. India has entered into an agreement with its trade partners under the World Trade Organization (WTO). The changes brought about by the liberalization process will be slow but certain. The government is opening up imports in a phased manner, and it is expected that this process will be completed by April 2003. In the meantime, about 930 items, including agricultural products, will be open for import under open general license from April 2001, making it possible to import dressed chicken, milk and milk products. Various livestock industry associations have taken issue with such imports in an attempt to protect their members. If the livestock industry is affected, the feed industry will also be affected. The Government of India has raised the tariff on all poultry and poultry products from 35 percent to the WTO boundary level of 100 percent. It therefore appears that there will be a level playing field. In view of the expected rise in per capita consumption of chicken meat, eggs and milk, livestock production and productivity will grow. The dairy industry, which is cooperative-based, is growing with the increased capacities of milk processing units. The population of cross[Type text] Page 17

bred cattle and buffaloes is also growing. Milk is very popular in India. The poultry industry is developing towards vertical integration and a few multinational companies have already entered the Indian poultry business. Although the live bird market currently accounts for about 90 percent of the total market, it is expected that the consumption of dressed chicken will grow in the next five years, from the existing 10 percent to 25 percent or more. This would mean establishing very hygienic and scientific processing units. Cold chains, branded chicken, chicken cuts, etc. will be introduced and, depending on the success and consistent quality, consumer preference for dressed meat will grow. The next decade will see significant changes in restructuring, mergers, acquisitions, amalgamations, joint ventures, diversification, integration and efficient service chains, e-commerce and use of the latest information technology in global tenders, trading, export/import and other commercial activities. At the root of all these developments will be the scientific development of feed manufacturing technology. The Indian feed industry will increasingly use biotechnology, more scientific formulations, new molecules and natural and herbal products to improve animal productivity. Indian agriculture will also use biotechnology and genetically modified organisms (GMOs) to support the feed industry, which is entering a very exciting phase of growth for the next decade

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COMPANY PROFILE

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COMPANY PROFILE
A BRIEF HISTORY OF KSE LIMITED KSE ltd is a public limited company is a incorporated with substantial capital participation by the Kerala State Industrial Development Corporation ltd. Trivandrum and though loans from industrial finance corporation of India, New Delhi. The company is engaged in the solvent extraction of ground nut cake and rice bran also. The oil thus obtained is moved for industrial purpose into the market. In addition is full-fledged livestock feed division engaged in the production of ready mixed cattle feed. The company was registered in the year 1963. In 1973 the solvent extraction plant was started with processing capacity of 60 metric tons of cake per day. In 1976 the company stated production of ready mixed feed with the production capacity of 50 metric tones per day and in 1983 the company increased the production of cattle feed to 120 mt per day which has recently been increased to 180 mt per day by the construction of a fully automated computerized plant. In 1988 company started a solvent extraction and cattle feed plant at Swaminathpuram near Palani, with production capacity of 150mts of cattle feed per day and processing capacity of 100-120mts of expeller extracted deoiled cake. In 1972, the company lased new cattle feed plant at pothannur near coimpathur with a production capacity of 80 mts per day and in 1995 company has leased a plan in mysore with the capacity of 50 mts per day. In 1996 the company started a new plant at vedgiri in Kerala with the capacity of 240 mts per day. Kerala solvent extraction ltd come out with a premium public issue on March 1993 which was over subscribed, through the stock markets are showing a low trend, now Kerala Solvents share is still quoted at Rs.140 per share whose face value isRs.10. this reflects
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the confidence of investing in the company. It was in 1963 that Kerala Solvent Extraction limited now known as KSE ltd entered the solvent extraction industry setting up the very first solvent extraction plant in Kerala. The traditional coconut oil industry in state was facing a decline then. Though the largest producer of copra in the country, as much as 80% of it, Kerala the infrastructure to exploit the potential of its abundant produce. While the oil industry in other parts of the country were thriving. The Dr. Lokhanathan committee, set up to feasibility of starting new industries in Kerala, recommended the establishment of 3 solvent extraction plants. And one of them, in Thrissur district. The oil mill owners in and around Irinjalakuda, who were thinking in similar lines saw the opportunity and look the initiative to establish a solvent extraction unit. The solvent extraction plant went on the stream in 1972 and in 1976 a new plant was setup to manufacture ready mixed cattle feed, which was a pioneering step. Since then there, was no looking back. The last 3decades have seen KSE emerging as a leader in solvent extraction and ready mixed cattle feed in the county and though these years of consolidation and diversification KSE has crate a niche for itself. Today KSE commands the resources, expertise and infrastructure to manufacture a range of live stock feed in high volumes, coconut oil from coconut cake and refined edible oil. Since the early, KSE had endeavored to supply its products to customers through extensive network of dealers and retailers which from a dedicated force behind the success of KSE. It is matter of pride that KSE is household name today. The KSE is a public limited company having around 6000 shareholders. The board of directors consisting 10 directors in the executive committee responsible for the management the article of association of the company empowers the board of directors of
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directors to appoint one as the Chief Managing Director. The company has one Executive Director and one Whole Time Director. The Chief Managing Director, Executive Director and Whole time Director are the smooth running of day to day affairs of the company. Strategic decision of the company are taken by an executive body consisting of the Managing Director, Executive Director, Whole time Director, General Manager, Finance Manager, Nutrionist , Marketing Manager, Plant Manager and Purchase Manager. These executives are professionals with vast experience in their areas of specialization.

ESTABLISHMENT Kerala Solvent Extractions Limited now known as KSE limited was established in 1963, by a handful of coconut millers in and around Irinjalakuda with a vision to overcome the crisis of the coconut oil industry. Initially started as a solvent extraction plant, the company now produces 750-800 MTS of coconut cake a day with 4 cattle feed production units and 2 solvent extraction plants. The company has diversified into the area of dairying by establishing 2 dairy plants for the production of pasteurized milk and milk products. It has obtained ISO recognition for its commitment to quality and professionalism.

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OBJECTIVES
1. To produce, manufacture ,extract, purchase refine, prepare import ,export, sell and generally to deal in oil from seeds and other oil bearing materials to carry on the business of refining the hydrogenation of oil and the manufacturing of byproducts there from and of trades connected there with. 2. To acquire erect, construct, establish operate, and maintain oil mills, extraction plants, and workshops 3. To purchase for the purpose of business of the company. Oil expellers denigrators , filter press , oil neutralizing , washing , dyeing bleaching ,filtration and hydrogen plants , punch machines and other machines . 4. To purchase, manufacture, treat purchase sell or otherwise deal in oilcakes, washing soaps, toilet soaps, hair oils and timed products.

VISION
We shall endeavour to maintain leadership through quality products, explore new avenues in product development and marketing, create a stronger bond between the management, work force, dealers and customers, contribute to social development and rural upliftment, and constantly strive for excellence in all spheres of our activities.

MISSION
To provide maximum benefit to the dealers and to give good quality products to the customers at a fair profit. To increase the turnover and to widen their markets to all the zones etc.

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GOALS
To achieve a minimum compound growth rates on sales turnover. To promote sales turnover. To provide for the optimum use of technological innovation. To enhance productivity.

DISTINCTIONS THAT MAKES KSE NO: 1 Keralas first solvent extractions plant. No.1 in processing coconut oil cake though solvent extraction in India.

Winner of S.E.A. national award and state productivity and safety. Front-ranker in mixed cattle feed production in India.

Recognition from Annual Nutrition Society for contribution in cattle feed manufacturing. Keralas first export mixed cattle feed.

The name trusted by millions of people.


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AWARDS AND RECOGNITIONS 1. Best Productivity Performance for cattle feed in India award from National Productivity Council continuously for eleven years 1996-97 to 2006-07. 2. The Solvent Extractors Association of India S.E.A Award for highest processor of coconut cake in India continuously for 19 years including 2008-09.

3. Kerala State Productivity Council Award. 4. Top Cattle feed Award for aflatoxin free feed from the Indian Association of Veterinary Pathologists (IAVP) and Kerala Agricultural University.

5. Tamil Nadu Productivity Council Safety Award. 6. Animal Nutrition Society of India award for Companys contributions for propagation of balanced compound livestock feed in India.

7. Industry Excellence Award from the Indian Society for the Study of Animal Reproduction for the year 2001.

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MILESTONES OF SAGA OF SUCCESS 1972 : The company started production in Irinjalakuda with a Solvent Extraction plant with a capacity of 40 MTs per day. 1976 : A new plant was set up in Irinjalakuda to produce 50 MTs of ready-mixed cattle feed. 1979 : Production capacity of Cattle feed Plant in Irinjalakuda increased to 60 MTs per day. 1980 : Solvent Extraction Plant capacity in Irinjalakuda increased to 60 MTs per day. 1984 : The Solvent Extraction Plant capacity of Irinjalakuda increased to 80 MTs per day. 1987 : Cattle feed Plant at Irinjalakuda capacity increased to 180 MTs per day. 1988 : Cattle feed plant in Swaminathapuram, Tamil Nadu started production Capacity 100 MTs per day. 1989 : Solvent Extraction Plant of Swaminathapuram unit with a capacity of 120 MTs per day started production. 1990 : Cattle feed production capacity at Swaminathapuram unit increased to 150 MTs per day. 1991 : Palakkad Branch started. 1994 : Keyes Forte, the new feed supplement for cattle introduced. Cattle feed production capacity at Swaminathapuram increased to 180 MTs per day.

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1995 : Calicut Branch opened. 1996 : 240 TPD cattle feed Plant at Vedagiri in Kottayam District started operation. Company renamed as KSE Limited. (Formerly Kerala Solvent Extractions Limited) 1998 : Company acquired its fourth manufacturing unit at Palakkad for manufacturing Cattle feed. 1999 : A modern CHILDRENS' PARK AND INFORMATION CENTRE was Completed at Irinjalakuda for the benefit of the Public. Company introduced K.S. Deluxe Plus" the Pelleted feed in HDPE bags for Kerala Market. 2000 : Company started production and marketing of Pasteurized Milk and Milk products from Konikkara Dairy, Trichur District,Kerala and Thalayuthu Dairy, Palani Taluk, Tamil Nadu. 2002 : Cattle feed production at Irinjalakuda unit increased to 195 MTs per day. 'VESTA' Ice Cream launched. 2003 : Started production of Cattle feed in a leased plant at Edayar, Kalamassery. Cattle feed production at the Swaminathapuram unit increased to 195 MTs per day. 2004 : Acquired Land from KINFRA for starting the new project of 200 TPD Solvent Plant and 100 TPD Oil Physical Refining Plant at Kinfra Park, Koratty. ISO 9001:2008 Accreditation for Irinjalakuda.

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2005 : Cattle feed Production capacity at the Irinjalakuda unit increased to 210 MTs per day. Company acquired property at Mysore. ISO 9001:2008 accreditation for Vedagiri and Swaminathapuram units. 2006 : The 200 TPD Solvent Extraction Plant at Koratty commissioned. 100 TPD Physical Refining Plant at Koratty commissioned. Solvent Plant at Irinjalakuda dismantled. 2008 : Ice cream production unit commissioned at Thalayuthu.

2009 : Cattle Feed production capacity at Swaminathapuram increased to 200 MTs per day. Commissioned Fractionation Plant at Koratty. Commenced 500 TPD Fully State-of-the-Art German Technology Animal Feed Plant at Irinjalakuda.

2010 : Ice cream production unit at Vedagiri commissioned.

IRINJALAKUDA UNIT The pioneering plant of KSE at Irinjalakuda is unique in many ways. It was the first solvent extraction plant in Kerala. It was the first major factory in the locality spread over 15 acres. It was hear that KSE set up its first cattle feed plant. The plant embodied the spirit of the enterprise of a group of committed people, who wanted to usher in an era of modernity into a traditional society and change the industrial landscape of the state. Naturally, today the Irinjalakuda plant enjoys of flagship states and commands an edge on infrastructural strength.
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Taking great strides technological development, the process of computerization in plant and office was initiated way back in 1987. Micro processers have been in using in the production line since 1989. Research and development plays an important part in the activities of the KSE, central R & D unit is located here. The plant houses a modern laboratory. The quality control cell here leads and guides other units and formulates stringent standards. The chief Nutritionist and Assistant Manager of quality control are also based here. A proud symbol of growth, the Irinjalakuda unit is an inspiring force for the entire KSE family. In 2007, company decided to install 500 TPD cattle feed production in the unit. This unit acquired ISO 9001 2000 accreditation.

SWAMINATHAPURAM UNIT Sale of KS cattle feed in selected markets in Tamil Nadu was started as early as 1984. To enable the company to extend its products and services to whole of Tamil Nadu, a new production unit was set up at Swaminathapuram in Dindigul district of Tamil Nadu. A solvent extraction plant was started the very next year. Spread out on 22 acres of land on the banks of river Amaravathi, this Rs.3.5 crores plant works round the clock. Keyes Forte is also manufactured in this unit. A model Diary farm with high yielding animals is also maintained in the unit for conducting feeding trials and other experiments.

VEDAGIRI UNIT The third cattle feed plant of the company with a daily production capacity of 240 MTs started operation at Vedagiri in Kottayam district, in March 1996. This Rs.6 crores project, fully financed from
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internal resources, was formally inaugurated on 17th August, 1996. This unit is built on a spacious area of 10 acres. Utilizing highly advanced technological features, this unit marks a new chapter in the cattle feed manufacture.

VEGETABLE OIL REFINING PLANT In 1195, the company explored the possibility of refining solvent extracted oil and marketing it in various states in India, the company commissioned a vegetable oil refining plant in December 1995, with a capital investment of Rs.1 crore, wholly raised from internal accruals. The company also refines sunflower expeller oil and markets it in the name KSE supreme.

PALAKKAD UNIT A recent addition to the KSE family is the livestock feed plant at Palakkad. With a manufacturing capacity of 120 TPD, this plant caters predominantly to the needs of the northern districts of Kerala such as Palakkad, Malappuram and part of Calicut.

KORATTY UNIT Company acquired land from Kinfra Small Industries Park, Koratty, Thrissur district and installed 200 TPD Solvent Extraction Plant and 100 TPD Physical Refining Plant with a capital outlay for refining vegetable oil. Solvent extracted coconut oil is refined in the plant and made edible. Commissioned Fraction Plant in March 2009.

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PRODUCTION UNITS
KERALA : KSE LIMITED, IRINJALAKUDA UNIT, P.B.NO.20, IRINJALAKUDA -680121, PH: 0480 2825476/2826676, FAX: 0480 2825244

KSE LIMITED, VEDAGIRI UNIT, KURUMULLUR PO, ATHIRAMPUZHA, KOTTAYAM DIST 686632, PH: 0481 2536829/2538718/2538719, FAX: 0481 2536830

KSE LIMITED, PALAKKAD UNIT, OTHUNGODE, PALAKKAD 678020, PH: 0491 2536332/2538451/2531858 KSE LIMITED, DAIRY DIVISION, KONIKKARA, MARATHAKARA PO, THRISSUR 680320, PH: 0487 2356394/2351501/2358806

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KSE LIMITED, (KINFRA UNIT), KINFRA PARK, NELUKETTU ROAD, KORATTY 680306

KSE LIMITED XXXIII/2837, PAROPADI, MERIKUNNU PO, CALICUT-3 PH: 0495 2370056/2900194

TAMILNADU : KSE LIMITED, SWAMINATHAPURAM UNIT, SWAMINATHAPURAM, DINDIGAL DIST - 642113, PH: 04252 252560/252561/252562/252563, FAX: 04252 252565

KSE LIMITED, DAIRY DIVISION, THALAYUTHU, DINDIGAL DIST 624618, PH: 04252 252860/252867

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CATTLE FEED SEGMENTATION

Cattle feed

Pellet

Mash

Pellet plus

Deluxe

Supreme pellet

Ordinary mash

Super mash

Special mash

pellet

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PRODUCT PROFILE

KS K S Super popularity. K S Deluxe Pellets K S Supreme Pellets

: One of the all-time favorites in the cattle feed. : A special cattle feed that has won immense : The choice of caring farmers for better results. : A bypass protein feed with ISI marks. Specially made for cattle with superior germ plasma and high production potential.

Jersey Keyes Forte

: Protection rich, tasty, de-oiled coconut cake. : Keyes Forte is a feed supplement for cattle. It contains Vitamin A, D3, E and all. The required trace minerals at recommended quantities.

K S Supreme

: Refined sunflower expeller oil. Solvent extracted coconut oil. Refined solvent extracted coconut oil.

MILK PRODUCTS OF THE COMPANY INCLUDES: K S Milk K S Ghee K S Curd Butter Milk Vesta Ice Cream

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BOARD OF DIRECTORS Board of KSE Limited consists of ten Directors out of which the Chairman and Managing Director is the Chief Executive Officer of the company. Moreover there is one executive director who is looking after the daily transactions of the company. The Board invariably meets in every month and evaluates the performance of the company. All major policy and business decisions are taken after due deliberations and with mutual consensus. A management committee with five directors as its members is functioning to assists the Board, which is regularly meeting, twice in a month, in order to review the company and proposals that are to be placed before the Board and mark recommendations there on. SOCIAL RESPONSIBILITY KSE Ltd is in the forefront for meeting its responsibility towards the society. KSE has contributed liberally towards the social events. 1. Construction and maintenance of a modem childrens information centre KS PARK in irinjalakkuda at the cost of Rs 80 lakhs. 2. Construction of footpath cum handrail for public at cost of Rs 10 lakhs. 3. Contribution of Kargil Fund Rs 5 lakhs. 4. Contribution to Gujarat earthquake relief fund Rs 10 lakhs. 5. Contribution to Bharatia Vidya Bhavan in Irinjalakkuda Rs 1 lakhs. 6. Contribution to St. James Hospital Rs 3 lakhs. 7. To Amala cancer centre hospital and Research Centre Trissur Rs 3 lakhs. 8. The Chief Minister relief fund Rs3 lakhs. 9. Mahatma Gandhi
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10.For construction of Smarakalanilaya Rs20000

class

rooms

of

Unnai

Warier

11.To St Joseph Collage for women Rs 80000 12.For construction of blood bank attached to the Government Taluk Hospital Rs 25000

INDUSTRIAL RELATION The company has 926 employees in its roll on 31.3.2011. the company is an expectation to the advise labor conditions existing in Kerala. During its working of 39 years, the company had lost few man-days by labor unrest. However, during the year under review, the Vedagiri unit was under lock out from 30.09.2010- 14.02.2011. Section of the employees of that unit resorted to slowing down of production to pass their demand for an interim hike in their remuneration during the validity field of settlement and management was forced to declare the lock out. After several round of negotiation, the management arrived at a settlement with the employees on their agreeing to drop their demands and the lock out was lifted. During the lockout period management had made alternate arrangements to ensure regular supply to the dealers and the performance of the company had in no way affected. There were no labor issues of serious nature in any other unit of the company. The management continues to maintain cordial industrial relation with its employees in all Units and is attending to their grievances with an open mind. Commitment in Rural Development KSE has taken up rural development as a major corporate task and responsibility. The agrarian rural society is the back born of the nations economic structure and KSE has always been active in supporting and promoting images in their vacation.
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Today Kerala and Tamil Nadu comparison the largest market of KSE cattle feed. The majority of their deposal over 600 KSE dealers ensure that the KS Range of cattle feed is available to them at a lower price suggested and enforced but the company KSE has made arrangements for the supply of cattle fed in villagers directly from dealers and through retailers . Besides beginning range of trusted products to the villages KSE also imparts valuable advice and instruction regarding animal has boundary and cattle to the villagers. Progressive Management and Unique Work Culture The management KSE rests on a eminent team of personalized from the cultural and financial and social system of society who from the BOD. The Chairman and MD executive director and whole time Director head the operations of the company and overseas its smooth functioning. The day to day management of various units is carried out by experienced professionals under a chief general manager. Who lead and motivate a dedicated world force. The total number of employees in various units of KSE now exceeds 1000. Besides KSE gives endured employment to over 2000 people, through its distribution network across Kerala and Tamil Nadu. The work culture of KSE is an exception to the rule in the strife ridden industrial climate of Kerala. During the quarter century of it is operation, the days lost to industrial unrest is only 23 days. This fact illustrates the cordial work environment and speaks of the extra ordinary relationship between the management and employees. Periodic appraisal and renewal of agreements between the management and workers credit a responsible attitude and productive atmosphere. The united efforts mutual test and progressive vision of management and force is the cornerstone on which the success of KSE is based.
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THE COMPANY TODAY The pioneering plant of KSE at Irinjalakuda in many ways. It was first solvent extraction plant in Kerala. It was first manor factory in the locality, spread over 15acres. It was here set up its first cattle feed plant. The embodied the spirit of enterprise of group of committed people, who wanted to user in an era of modernity into a traditional society and change the industrial landscape of the state. Naturally, today the Irinjalakuda plant enjoys a flagship status and commands an edge on infrastructural strength. Taking great in technological development, the process of computerization in plant and office was initiated way back in 1987.Research and development plays an important role in the activities of KSE, The central R & D unit is located here. The plant houses a modern laboratory. The quality control cell here leads and guides other units and formulates stringent standards. The chief Nutritionist and Assistant manager quality controls are also based here. A proud symbol of growth, the Irinjalakuda unit is an inspiring force for the entire KSE family. KSE Limited an ISO 9001-2000 certified company is having an annual sales turnover Rs. 371 cores ; Irinjalakuda branch is the head office of the company. Only the cattle feed production is running in irinjalakuda plant with a production capacity of 210 tones per day. The production is running the three shifts and each shifts they were producing 70 tones. The company is giving 400direct employments for people in Irnijalakadhu

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DEPARTMENT ANALYSIS

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FINANCE DEPARTMENT
Finance is an important factor that directing the day-to-day activities of a business firm. Finance is concerned with the cash and cash is the common purchasing power or medium. Finance may be defined as, that administrative area or set of administrative function in an organization which relate with the arrangement of cash and credit so that the organization may have the means to carry out its objective as satisfactorily as possible. Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. Financial management is concerned with raising and administrating funds for an enterprise. It examines how funds are used and procured. The main objectives of financial management are: the maintenance of liquid assets and maximization of the profitability of the firm. The financial manager is concerned with the efficient allocation of funds within the enterprise and raising additional funds when needed and investing funds in the projects DEPARTMENTAL STRUCTURE

Secretary/chief finance manager

Assistant finance manager

Senior assistant

Clerks

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The main function of Finance Department is to have an overall control over both inflow and outflow of financial resources. The Finance Department is divided into differen tsections. 1. Establishment Section: This section is mainly concerned with the payment of employees. These payments include: Loans Salaries Advances Leaves, Travelling Allowances Major functions Bill clearance of raw material purchase Payment clearance related work Tools and spares Sales related bill clearance Monthly dealing with distributors Tax clearance, Licenses receiving works Work order related works 2. General Finance Section This section concerned with preparation of statements and other general transactions like: Cash General Accounts Taxes Insurance Balance sheet Fund Flow Statement Cash Flow Statement Capital Valuation

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3. Records Section In the records section the records are maintained properly. The main record maintains here are: Receipts Cash Book Payments Cash Book Receipt Voucher Payment Voucher Salaries and Wages Purchase materials and services Purchase of fixed assets Claims Recoverable Debit note Miscellaneous Entry Source of Finance Long term finance, Medium term finance and short term finance are consider the source of finance. Sources of Long term Finance are: Shares Debentures Internal Finance Public Deposit Industrial Financial Institutions Industrial Banks Sources of medium term finance are: Redeemable Preference Shares Debentures Bank loan Hire Purchase and Instalment Purchase Public Deposit Mortgage Loan Internal finance Sources of short term finance are: Bank OD Trade creditors Money lender
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The authorized share capital of the company is Rs 10crore and issues and subscribed capital is Rs3.2crore. The par value of 1 equity share capital is Rs 10. The company issued 6000 bonds 5% redeemable cumulative per share of Rs 100 each. The redeemable of this allotment. The company went in for public issue of shares in 1994. Company shares listed at stock exchange at Cochin, Chennai, and Mumbai. The present market value of the company share is Rs 200. Financial accepts fixed deposits from the public at the rate of 15%PA. The company keeps books as purchase day book, sales day book, cash and bank book.

Major Applications
Computers are used for accounting and technical aspects of account such as; Inventory control Production Planning and Control Purchase Accounting Budgetary control and standard costing Machine capacity utilization Quality control Input/output Analysis

Market research Management Information System

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Capital Structure
It consists of both owned capital and borrowed capital. Owned capital consist of funds brought in by owners, borrowed capital consist of shares debentures and loans.

Financial policies
Accounts in KSE Ltd are prepared under historical cost convention on accrual basis unless otherwise specially stated in notes to account 1. Fixed Asset Asset put to use have been stated at cost less depreciation. Asset not put to use have been stated at cost 2. Depreciation: Depreciation on fixed assets have been provided on written down value method at the rate prescribed in the company Act 1956, 3. Investment Inventories as at the aloes of the year are valued at loses cost as net realizable value 4. Goods in transit at cost 5. Retirement benefit A. Contribution to Provident fund and employees welfare funds is charged to Profit and Loss Account B. Gratuity The accruing liability towards the gratuity of employees in covered by the group gratuity assures in scheme is charged to Profit and Loss account. Gratuity in respect of whole time directors is provided for or gross whole time directors is provided for on gross basis for on charged to P&L account

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6 Sales: Sales are stated gross of excise duty as well as net of excise duty and are stated exclusive of VAT/ sale tax 7 Claims Claims are accounted for as fund where finally determined/ settled 8 Grants Grant/ subsidies received specially related to capital assets, are credited to the carrying cost of the respective assets other. Subsidies received are credited to capital reserve 9 Inventories Inventories as at cost of the year are valued at lower cost or net realizable value. Cost includes cost of purchase, conversion and other cost, as the case may be, incurred in brings the Inventories to their location/ condition, determine on the following methods. a) Raw materials b) Packing materials c) Stores and spare and consumables cost : FIFO : FIFO : At weighted average

Borrowing cost: Borrowing cost that are attributed to the acquisition or


construction or production qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one of that necessarily takes substantial period of the fine to get ready intended use. All other borrowing costs are charged to revenue.

Tax on income: current tax is determined as the amount of tax payable in


respect of taxable income for the year. Deferred tax is the required on timing difference, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods where there is un absorbed depreciation or carry forward
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losses deferred tax assets are recognized only if there virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent to there is reasonable certainty or realization in future.

Segment reporting:
The companys primary segments (business segments) have identified as the a) Animal Feed Division b) Oil Lake Processing division c) Diary Division Compressing Milk and Milk Products Industry Ice Cream. There no reportable geographical segments. Segments revenue, segment results, segment assets and segment liability include the respective amounts identifiable to each of the segment as also amounts allocated on a reasonable allocated to any of the business segment, are shown as unallocated expenditure. Assets and liabilities that cannot be allocated between the segments are shown as part of unallocated assets and liabilities respectively. Later segment transfer of processed material is accounted considering the estimated reliable value of such goods.

Foreign Exchange Transactions:


Monetary assets and liabilities relating to transactions involving foreign currently remain unsettled as the end of the year end rate. Gains or loss due to such transactions of foreign exchange transactions (other than for fixed assets) are recognized in the P&L accounts of Gains or loss due to such transactions of foreign exchange transactions relating to fixed assets, if any, are adjusted the carrying cost of such assets.

Capital expenditure
The ice cream manufacturing Unit adjacent to our existing cattle feed plant at Vedagiri has been commissioned on 28.03.2011. The capital outlay of the new ice cream unit is 127 lakhs as on 31.03.2011 excluding the value of land already owned by the company.

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Dividend
Considering the profit for the year, directors recommend a dividend of 100% (10.00 per share of 10 each) for the year ended 31st march, 2011which, if approved at the ensuing Annual General Meeting will be paid to those members whose names appear in the Register of Members of the company as on 28.07.2011. in respect of shares held in dematerialization form, the dividend will be paid on the basis of beneficial ownership as per the details furnished by the Depositories for this purpose at the end of business hours as on 18.07.2011.

Auditors
M/s.Varma & Varma, Charted Accountants will retire at the forthcoming Annual General Meeting and are eligible for the re-appointment.

Operations

The turnover of the Company improved from 371 croers to 454 croers during the year ended 31st march, 2011, thus registering and increase of 22% over that of previous year. Though a portion thereof may be attributed to the increase in the selling price of cattle feed, there is considerable volume wise growth in sale of cattle feed. Cattle feed sales volume improved by 12% when it grew from 2.86 lakhs tones in the previous year to 3.20 lakhs tones in the current year under reports. This is despite a loss of production in Vedagiri Unit for six months due to deliberate slowing down of production by a section of workers and consequent lock-out of the unit. In the first three quarters of the year under reports,

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MARKETING DEPARTMENT

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MARKETING DEPARTMENT

Department Structure

Chief marketing manager

Sales executive

Office assistant

Clerk

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Marketing is the process of understanding customer needs and fulfilling them. It is important to minimize the cost of production and at the same time provide good service along with the product. Effective marketing not only assures demand for the product but also fulfils the consumers needs. Supplying the desired product at the competitive price, promoting the product, and make it easily accessible is what creates the right mix. Marketing starts with human wants and needs. The marketing concepts holds that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target market. The essence of marketing is providing desired value of customers. Marketing should consider a central business function as it establishes, develops and commerciali zes long term customer relationship. This way the objective of both the parties are met, that is, customer needs are served and the company earns profit. The marketing process consists of analyzing marketing opportunities, developing marketing strategies, planning marketing programs and managing the marketing effort. Functions Marketing Department of the company concentrates on building long term relationship with the customers, dealers, distributors and suppliers. The company also undertakes sales promotion works. Marketing department mainly concentrate on consumer promotion and dealers promotion. In this company the departments by Marketing Manager and under him there are 2 Assistant Manager. One for sales Dispatch other for Customer service and Sales promotion. The company sells its products only through the dealers, No direct sales are allowed. The company has around 500 dealers. It delivers goods at their shop unloading changes; rent etc will not bear by the company.
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His(marketer) main job is to convey a consistent image of his organization, either to the internal stakeholders (employees. Share holders) or to the external share holders (customers, public). The company should realize that every interaction of stakeholders with any employee of an organization decides the ultimate fate of the organization. Marketing department mainly concentrates on customer promotion and dealer promotion. The main functions of marketing department are follows: 1. Seminars for Farmers Seminars are conducted for farmers both the rural and urban areas. The main purpose of these seminars is to create a better awareness among the farmers. In this section farmers are given valuable advices on cattle care and all their questions are clarified. 2. Cattle Shows Company sponsors cattle shows conducted by milk society, dairy departments etc. cattle shows help the company to reach the prospects not reached through their sales force. 3. Dealer Promotion It is carried out by providing dealers with i.Banners ii. Purchase-pointers iii. Dealer commission is granted at the rate of 10%. 4. Feedback from Customers Marketing department encourages feedback from customers. Labels addresses for enquiry are put in each packet for feedback. 5.Obtaining Sales Order Dealers are selected through appropriate procedures. Animal population of the area is a factor for giving dealership. Dealers can give orders either directly or through telephone. Date of delivery is given in advance.
6.Pricing

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The pricing of KSE is flexible. Pricing of the product varies according to the cost of raw materials. During 1998 the company was forced to increase the price of their product. But when the price of row materials lowered, the company decided share it with the customer. As a result there was a reduction of Rs 13-18 per pack. According to Kerala General Sales tax a 15% additional sales tax was imposed. So price were renewed from 23rd August 2006. 7.Training Training for KS sales persons was conducted from 2001. According to the training session the main objectives of sales management were a) Sales volume b) Contribution to growth c) Continuing growth Sales Procedure 1. Dealers can use own or rented vehicle 2. Vehicle is weighted before going to godown 3. After weighting it is loaded with required quantity 4. Vehicle is then weighed with load 5. Weight of products is verified 6. Bill clearance done Advertisement and sales promotion
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The company does not give much importance to advertisement but it concentrate on sales promotion to a greater extends. However the advertising and sales promotion expenditure for the year 20082009 amounts to Rs 7, 92,913: catalogues and Descriptive leaflets are also provided to dealers. The main users of the product are farmers. So the advertisement is given in local channels only. The company also gives dealers board to dealers as an advertisement for their product.

Other Advertisement are Used Radio ads Wall paintings Hoarding Flexes Tin boards to dealers Dangles Pamphlets Flex banner Cinema slides Yearly calendar

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Market Share company KSE Others Marketing segmentation Since the final consumer of cattle feed is cattle, market segmentation is done, on the basis of milk production of cattle is segmented as 1. Dry animals with no milk 2. Animal yielding milk 5 liters 3. Animal yielding milk between 5-10 litters 4. Animal yielding milk more than 10 litters Share% 40% 60%

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DEALERSHIP CHART

Company

Authorized dealers

Sub dealers

Wholesalers Retailers

Retailers

Wholesalers Customers

Customers

Retailers

Customers

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PRODUCTION DEPARTMENT

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PRODUCTION DEPARTMENT
Department Structure Engineer

Senior shift supervisor

Technical staff

Workers

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Production is the primary business of an organisation. All other wings or activities of an organisation exist subject to the existence of production. Without production or anything to sell, there is no organisation at all. Production is the process by which the transformation of the range of inputs into the required output having the requisite quality level. Production involves the greatest bulk of a companys employees and is responsible for a large portion of its assets. It also has a major impact on the quality and cost of goods and therefore is the visible face of the company. In KSE warehousing is also under the purview of production department. Here the production department is headed by the plant manager. He is supported by an engineer, shift supervisor and godown officer for the effective working of the production department

Functions of Production Department The major functions of production department are: Utilization of optimum level of raw materials Controlling production Ensure flexibility in production Standardization of production Ensure quality in production Minimization of cost of production
SOLVENT EXTRACTION PLANT Preparatory section The raw material (coconut oil cake) is brought here and is cut to size from here oil cake is transferred to the extraction plant through the elevator. Extraction Here, continuous counter current extract is used for extraction. Hexane is used as a solvent. Cake is removed in left through the extract while heated hexane at 63-70C is sprayed on it. It takes 1 hour for the cake to pass through the extract by this time most of the oil cake would have dissolved in hexane.The mixture of oil and hexane is called Misulla. Oil is separated from hexane
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by distillation. Oil is boiled at 300 0C while hexane is boiled at 60.2*C. Following this function all hexane from oil is removed. Hexane in gas form is condensed in an condenser and used again. Cake is removed of its hexane by drying in a drier. Before packing this deep-oiled cake a little water is sprayed upon it as hot cake cannot be packed as such.

CATTLE FEED PLANT


Using the de-oiled cake, which is a by-product of solvent extraction process, starts steady mixed cattle feed production. Cattle feed is produced, using more than 20 raw materials. The formula for cattle feed production is formulated by nutritionist. The formula will exchange according to the availability of the raw materials. Seasonal fluctuations affect the availability and the price of the raw materials. The important raw material used for this purpose is coconut oil cake, soya bean cake, cotton seed cake, maize, rice, wheat barn, and nutrients etc. PRODUCTION FLOW CHART Raw material feeding

Raw material weighing

Batch grinding

Batch mixing Molasses mixing

Pelletizing Bagging

Quality check Despatching


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1. Raw Material feeding : Various raw materials to be taken for production are listed in the raw material feeding report on a day to day basis and fed to the conveyors. The materials fed are taken to the top floor through the coveyor. 2. Raw Material Weighing : The raw material is weighted in the weigh hopper as per the formulate given by the Chief Nutritionist. For each recipe, separate formulae are entered in the computer. 3. Batch Grinding : The batch which is weighed in the weigh hopper is taken for grinding in hammer mills, where required sleeves are used to ensure adequate particle size for the ground material. 4. Batch Mixing : The material ground in the hammer mill is taken to the ribbon type batch mixer for predetermined time to ensure homogeneous mixing. The minor ingredients are directly added to the mixer. 5. Molasses Mixing : The required molasses added to the batch and mixed in molasses mixer. 6. Palletizing : The food that is mixed with the molasses is passed through the pellet mill feeder conditioner where required quantity of steam is added. It is then passed through the pellet mill where pellet are produced. The hot pellets are cooled in cooler and then bagged. 7. Bagging : After completion of production, bagging is done and appropriate identification is done with respect to the date and shift of production. Computerized Production The most sophisticated feature of the unit is computerized system for the production. The microprocessor controls the overall production procedure. A computerized control room is situated near the plant. Then the experts can operate the production from the control room.
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Environmental Aspects A well equipped pollution control plant is maintained to ensure that the effluent water is treated as per the conditions stipulated by the state pollution control board. Pollution control unit is environmentally acceptable because an aspiration system (local dust catching) prevents the chances of pollution OPERATION The whole operation is automatic which is programmed to the computer placed at the plant operators room. After feeding of raw materials to the hopper, the computer automatically takes the amount of raw material needed for the batch as per the chief nutritionist formulae. The bagging is also done automatically. The plant operator is responsible for the change in the percentage of raw material in the batch. The raw materials are fed to hopper which itself is a weighing machine. It allows only the appropriate amount of raw material to enter the production. PRODUCTION PLANT In KSE Vedagiri unit, production take place in the cattle feed plant. CATTLE FEED PLANT In this plant the company uses different types of cakes according to their availability apart from other materials of the company such as coconut cake, sunflower cake, mustard cake, soya been, wheat, calcium, vitamins, cotton seed, phosphate, tapioca, maize, jowar and other vitamins. Except from the coconut cake, all the other materials are purchased from other states. It can produce 200 tons per day. MMCP TECHNOLOGY It involves mixing, milling, cooking and pelleting.

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MILLING This is being used for ensuring that all the granules are grinded, screened three mm sieve. The materials feed in to the grinder and powdered as it passes. Through the screen provided at the bottom side of grinding chamber. Two hammer mills are used. MIXING The raw material will mixed thoroughly by using a horizontal mixer. COOKING The steam for cooking is produced using a boiler. The mixer carries out a strong mixing while the mash is moved forward and added with dry saturated steam. The cooking is carried out at a temperature of 80 degree Celsius using a high pressure saturated steam. PELLETING The pellet mill die by rotating drags the mixture of mash and steam towards the roller, which press it and consequently compel it to pass through the hole of the die. It increases the density of the mixture, which together with heat generated by the saturated steam facilities the extraction of the pellet.

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QUALITY CONTROL DEPARTMENT


The success of a company depends upon the quality of its product. Quality is the totality. Quality is the totality of features and characteristics of a product and service that bear on its ability to satisfy stated or implied needs. Total quality is the key to value creation and customer satisfaction. The quality control department has to play an important role in the success of a company through innovating quality product. It aims at total quality control. It begins right from the purchase of raw materials to after sales quality check. Uncompromising quality is the main feature of KSE. It is with which the company maintains its reputation. The quality control department ensures the quality of cattle feeds through testing t he products at different stages. Statistical sampling techniques are applied for quality control tests. The quality control tests include the raw materials inspection, in process inspection, finished products inspection and finally after sales quality control.

DEPARTMENTAL STRUCTURE
Chief nutritionist

Senior chemist

Junior chemist

Attenders

Steps in Quality Control In order to ensure total quality, tests are conducted right from the stage of raw material acquisition to after sales. Payment of raw material is done on the basis of the test results. There are four stages in the quality control: 1. Raw material quality verification 2. Quality verification during grinding and mixing 3. Product quality verification 4. After sales quality control
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a) Raw material Quality Verification Potential fat are the required context. The main impurities are moisture and silica. The fat content in the raw material is verified by a test known as Crude fat test apparatus used is known as soxtlete apparatus. There are three such apparatus in the lab. Protein content is verified with the help of an apparatus termed as fumes chamber. As protein is a Nitrogen compound, protein content can be verified using this apparatus to measure nitrogen content. Only one apparatus is there in the lab for this purpose. Moisture content of raw materials should not be above a prescribed percentage (usually 10%) the best tube for moisture is conducted to ensure that the raw materials are properly dried. In later concept in 5gms is tested by using an apparatus Hot Air Owen. Silica content is verified using the test named as Acid Insoluble Test apparatus used is muffle furnace.

Other Apparatus Used Distilled water unit Vacuum pump Hot plate Electric weight machine b) Quality Verification during Grinding and Mixing In second stage there are two quality checks: 1) Check during grinding. Check during grinding is done at the grinding stage to ensure the proper size recommended. 2) Check during mixing. Check during mixing is conducted to find out whether them ixture is properly balanced. Alsop the weight is checked at this stage. c) P r o d u c t Q u a l i t y It involves 1) Calcium content verification. 2) Chlorine content verification 3) Phosphorous content verification
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Volumetric test is used. Product quality verification is done at 3 shifts by taking sample sand checking it at the lab. Then it is pat before the medical officer for approval. 4. after Sales Quality Control Customers are given proper guidance and instructions. They are advised not to store the feed in moist place, also labels put in each bag to ensure proper feedback Training: Quality control personnel regularly undergo in service training at courses conducted at control food Training and Research Institute (CFTRI), RRL, NDRI & other national research organizations including various veterinary colleges in the southern states

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HUMAN RESOURCE DEPARTMENT

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HUMAN RESOURCE DEPARTMENT


Human resource is of paramount importance for the success of any organization. It is a source of strength, aid and, it is the most important asset of an organization. Human resource are the wealth of an organization which can help it in achieving its goals. Human resource management is the planning, organizing, directing and controlling of procurement, development, compensation, integration, maintenance and reproduction of human resources to the end of the individual, organizational and societal objectives are accomplished. Human resource management is the qualitative improvement of human beings who are considered the most valuable assets of an organization. It is the strategic approach to the acquisition, motivation, development and management of the organizations human resources. The primary objective of HRM is to ensure the satisfactory accomplishment of the objectives of an organization and of its employees and management. It helps workers in accomplishing individual and organizational goals. The HR manager organizes the HR department to carry out the functions entrusted to him. In KSE personnel department functions are controlled by Personnel Manager. DEPARTMENTAL STRUCTURE
Personnel manager

Personal officer
The

objectives
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of

the
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study are classified under two heads.

They are :

Functions of Human Resource Department 1. Recruitment Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. This is made on the base of personal interview. Only qualified candidates are selected. Final selection is done by the head office. 2. Pay Fixation It is based on the job analysis, conduct of salary survey, group similar jobs into pay grades, price each pay grade and wage administration rules. 3. Promotion Advancement within an organization is ordinarily labelled as promotion. It refers to the advancement on an employee to a better job. Promotion is a mean of filling up vacancies which occur in any organization from time to time. Promotion is given on the basis of: Seniority Performance Additional Qualification There is an understanding between the workers and the management that promotions will be made on the basis of ability and seniority. 4. Welfare Labour welfare means anything done for the comfort and improvement intellectual or social, of the employees over and above the wages paid which is not necessary for the industry. KSE gives first priority to the welfare of the employees. Statutory and non statutory benefits are provided. 5. Performance Appraisal Performance appraisal is the systematic, periodic and an impartial rating of an employee, excellence in matters pertaining to his present job and his potential for a better job. It is done to ensure the efficiency of workers.

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6. Statutory Requirement Factory license and boiler license renewed every year. . Punchayathu tax and building tax, company tax, individual employee tax, etc. are paid. Diesel license and environmentally acceptable licenses are renewed every two years. Human Resource Management: Nature Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

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WELFARE ACTIVITIES Labour welfare activities of KSE Ltd ensure a peaceful and friendly atmosphere in the workplace. Labour welfare is a matter of first priority to the management. The firm provides sanitation, periodical medical check up and recreational facilities to the employees. Firm provides both statutory and non statutory benefit. Statutory Benefits ESI and per ESI Act 1948. Gratuity as per payment of gratuity Act 1972. Employees Deposit Linked Insurance. Contribution to Kerala Labour Welfare Fund. P.F. Non Statutory Welfare Fund Employee Welfare Fund All employees of the firm contribute a fixed monthly amount to the fund. The fund is administrated by a committee nominated by the management and the employees. . Death Fund . Terminal Fund . Disablement fund . Medical benefit . Cash award for children . Loan for marriage of children . Loan for house hold items. Annual Gift Gratuity as per payment of gratuity Act 1972. Firm give annual gift to all employees. Same amount is given to all from the General Manager to Lowest paid workers. Uniform and Footwear Firm provides two sets of uniform to the workers. Technical staff is also provided two sets of uniform and pair of shoes.

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Ex-Gratia Payment One month salary is granted as Exgratia in connection with marriage of employees and if an employee dies in service. Leave and Travel Allowance It is given every year. Conveyance allowance It is allowed to all permanent employees based on category in which they work. Shift Allowance The second and third shift employees are provided with shift allowance. Washing Allowance It is provided to all employees with uniforms. Group Insurance It is introduced recently in the firm. All employees are provided with group insurance of LIC. Leave Allowance 13 days declared as holiday in a year. Trade Unions KTUC(M) INTUC(I) BMS

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PURCHASE DEPARTMENT

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PURCHASE DEPARTMENT
Department Structure

Purchase executive Senior assistant

Office assistant

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PURCHASE DEPARTMENT The purchase department places an important role because purchasing has its effect on every vital factor. Its function is procure material supplier, and service, machine, and tools at most favourable terms consistent with maintain the desired stand of quality. Purchasing is an important function, because for the purchase of materials a, substantial part of the companies finance is committed which affects cash flow position of the company. The purchase committees make important decision about purchasing raw material for the cattle feed production. Purchasing is the procuring of goods as per the need-either for future sale, use or storage-against payment of an optimum price, Purchase management is the technique of purchasing the right goods at the optimum price at right time from the reliable vendors. It is a procedure for procurement of goods or service on cost-effective terms. The purchasing procedure is a defined method of buying goods or hiring services to make them available when they are required. The main objective of purchase management is to ensure availability of required goods or services, as and when they are needed by the organization. Goods may be purchased and kept in storage for future requirement, keeping in mind possible shortage conditions in the future. The purchase department assures that the company should get good quality raw materials at the right time. The purchase department of KSE Ltd is performed successfully under the supervision of chief purchase manager.
FUNCTIONS OF PURCHASE DEPARTMENT

1. To give order for raw material 2. To ensure continuous availability of raw material so that there may be uninterrupted flow of material for production 3. To contact brokers all over India to know about market price 4. To purchase proper quality of raw material at reasonable standard 5. To ensure weight of the purchased goods and storing it in proper place for easy retrieval and use
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6. To develop alternative sources of supply, so that material may be purchased from that alternative source, if a particular supplier fails to supply the material. Purchase of raw material for cattle feed production is an important procedure of purchase department. Therefore, the purchase of raw material is on requirement for production. The raw material is purchased according to the availability and capacity of go down. The nutritionist prepares the formula for the production and the raw material arranged on the basis of it. The formula is prepared on the basis of availability of the raw material. The other important purchase procedures are placing order, price of raw material, purchase contract and material receipt.
PURCHASE PROCEDURES

1. Purchase Requisition: It is a document through which the user department requests the purchase manager to arrange for purchasing the material required. Each department head prepares the purchase requisition and send it to the purchase manger on receipt of purchase requisition report. The purchase manager will make necessary steps for purchasing material that has been mentioned in the purchase requisition. 2. Plans are made by the purchase department about what to purchase, how to purchase, when to purchase and so on.

3. Purchase manager does not invite quotation for the supply of materials from different suppliers. Orders are placed through telephonic orders. Normally the orders are made in bulk quantity. Maximum Economic Ordering Quantity is 250 tons per order.

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4. The purchase committee selects the supplier after evaluation. The purchase manager then discuss with the supplier about rate, quality, requirements, quantity, delivery time and packaging. Then both parties agree that they will enter in to purchase contract according to supply and payment.

5. Making of purchase contract: Six copies of the purchase contract will be prepared and it is signed by Chief Purchase Manager and Chief General/Finance Manager. The company will send two copies of purchase contract to the supplier, one copy to the purchase department, one copy to the finance department, one copy to the stores department and the last one will keep it in their running file. The supplier will send back one copy as a token of confirmation. A purchase contract will contain the details such as, the name of the material, quantity to be supplied, agreed rate, quality specification, time in which it is to be supplied (delivery date), place of delivery, rate whether inclusive of tax, packing of material, mode of transportation, option if the material is not supplied on due date and mode of payment. Generally, 90 per cent of the payment will be made in the next day. In case the delivery is not made on due date, this 10 per cent will be adjusted.
6.

Receiving and inspection of material: When the material arrives, the drivers have to report at the gate. The guards will inform it to the purchase department who will give permission to enter into the company.

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Before taking the material to the godown, the total weight of the truck containing the materials will be calculated. This weight involves the weights of truck, materials, and packing of material. Later after unloading of material, the weight of the truck, gross weight (actual weight of material and its packing) and net weight (weight of materials only) will also be calculated. At the time of unloading the material, actual samples of it will be taken and send to the Lab another packet will be kept a check sample. The Material Received Report (MRR) will be prepared and send it to the purchase department. Full payment for the materials received will be given only after getting the lab results. The rebate will be deducted if there is any non-fulfillment of the conditions of the contract. If there is any dispute regarding the quality of the material, the company will send half of the check samples to the supplier who will send the second half of the check sample to an independent lab for re-test. Nearest results average will be taken for settlement.
MAINTANANCE OF STOCK

Materials purchased are required to be delivered at the Vedagiri unit. Specifications of the materials required are communicated to the supplier who supplies the materials as per specifications. The load of materials entering the factory will be registered at the factory gate. The load is then sending to the store where the store officials check the materials for visual defects through sample test. Once the store officials verified the load, it will be unloaded and each material will be stocked separately in its lot and stored in a pattern. Then raw material samples will send to the company late for content analysis. If the quality of the materials is found inappropriate, then adjustments in the price will be made in the final settlement.

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Maximum storage capacity of the store is 7500 tons. The company maintains a minimum stock level of 15 days a minimum of one and a half months.

MATERIAL HANDLING Once the material requisition report is made, the material is accepted and receipt is forwarded to the accounts department. The load number is specified in the MRR. Factory item is stored as per specified act and each issue is recorded. Issue of material is done L.I.F.O basis. Hence stock can be verified easily whenever required. FORMS USED Forms used in the purchase department are ; 1. PURCHASE CONTRACT 2. MATERIAL RECEIVED REPORT (MRR)

1. PURCHASE CONTRACT This contains information regarding the name of the dealer, order number, date, name of the material, quantity required and rate. It also contains specific information regarding quality duties, packaging, and mode of delivery, place of delivery, delivery rate and payment schedule. Chief purchase manager of general manager will sign this report. Copies of this document are prepared too are send to the supplier out of which one will be send back by the supplier as confirmation, on copy is send to finance department, one to godown, one is kept in the running file.

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2. MATERIAL RECEIVED REPORT (MRR) This contains details about the materials received, date, supplier name, number of bags, voucher number, quality, freight, etc. This form should be signed by the authorized signatory. Three copies of this form need to produce. One will send to godown, two copies are retained by the purchase department.

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FUTURE PLANS AND PROGRAMS


KSE, having an annual turnover of Rs.250 crores, which s the largest manufacturer of cattle feed. It provides employment to around 1000 members directly and another 5000 indirectly. Its share is being listed in three stock exchanges in Cochin, Chennai and Mumbai. The company commenced its production in the year 1972. It is marketing annually about 1.80 lakhs per tons of superior quality cattle feed. KSE has successfully launched its Vesta Brand Ice Cream which has been well accepted in the market for its matching international quality standards. KSE plans to add more ice cream production units across Kerala in the coming years to serve all pockets. KSE is in the oil extraction industry in the past 31 years. It is having two solvent plant with processing capacity of 100 tons per day. The company has also a chemical oil refining plant of 20 tons per day. The company has secured the National Productivity Award for the year 2001-2002 for being first in terms of production efficiency in the animal feed sector. This is the sixth time in a row that the company is being selected for this most coveted award. It is pertinent it note that in the Kerala industrial scenario, where many companies are choosing down, either due to labour unrest or due to other economic reasons, KSE continue to commence new venture each year and runs them successfully. The company is having six units at different locations. The relation with the labour unions is very warm and cordial. KSE, with a capital base of Rs.36crores embarks on an expansion to double its solvent extraction capacity and add a most modern ecofriendly vegetable refining plant. The company has already identified six Acres of land in the KINFRA small industries park, koratty fort his expansion.
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SWOT Analysis

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SWOT (Strength, Weakness, Opportunities and Threats) has been a useful tool for industry. This tool is effectively used as a decision making aid while planning new vocational programs. The swot analysis is classified into 2 types. Internal factors and External factors. Internal factors are; 1. Strengths 2. Weaknesses External factors are; 1. Opportunities 2. Threats Probably the strangest message from a SWOT analysis is following Elements : Building on strength. Minimizing weakness. Seizing opportunities. Countering threats

Strength
Persistent Increase In Demand Market share is the major strength of the company. It also have strong market image. The company is got high financial resources. The people were aware of the product so it increases the demand for the product KSE is a ISO 9000 certified company. Reputation and brand image of the KS for the quality of its products.
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Continuous profit making company thus financially healthier organization. A company which is listed in the three stock exchanges in the country. Location advantages being adjacent to National Highway. Dairy industry is forward integration of other two segments and thus can service thecustomers of those two segments. Majority of the milk societies in the Thrissur District are dealers of KSE Ltd., for cattlefeed, poultry feed and duck feed. No:1 in processing coconut oil cake through solvent extraction in India

Weakness
Do not provide any financial assistance for any production enhancement Programs. Frequent complaints especially on the packing by the consumers. Lack of public relations programs. No veterinary programs are conducted. Promotional measures are non-aggressive. Doubts about international competitiveness. Indirect control by government over price of milk which is a bottle neck in increasingprice of feed to offset increase in raw material prices. There is a need to delegate the powers down the hierarchy so that CEO could concentrate only on issues of strategic importance. Due to increase in the prices of raw materials and fuel and power the company is facing increasing cost.
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Company is facing tough time to control high turn over. Company's trained professionals are in great demand in process industry. This high turnover results in drain of valuable skill and experience.

OPPORTUNITIES
Milk consumption habits are developed among the consumers hence there is hugedemand in present market requirement for milk products. Acceptability of the feed and its quality standards in the market. Availability of talented technical and marketing personnel. Product diversification is to be explored Development of milk based sweet industry. Plant Expansion Company has opportunity to expand their plant. High prices in real estate have made this an opportunity for the company to expand
Communication Can Be Improved Through Information Technology

Threats
Unhealthy competition from small players who are producing cheaper quality products. Entry of big players including Multinational Corporation in the market catered by ourcompany. Government has introduced excise duty on ice cream at 1% and government mayenhance the rate of excise duty in future. Upward revision of fuel price increasing of ingredients manifold. Granting of subsidy on animal feed by the government selectively avoiding private manufactures.
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Findings

We have found many this in KSE they are as follows: The company has huge market demand for its product. Because company has created a goodwill among customer over years. Company has faced many they problems over the years and they have been successfully running. Because of its good administration department. Company has always tried to maintain a good employeremployee relation by providing good working condition. While other companies have put lots f money in marketing their products KSE has limited marketing. But they have a huge demand for their products Even though they are running 365 days but they still cant satisfy the demands of the customers. In olden days their demand has been highly seasonal but now it have change. They are manufacturing milk and ice cream but due to unavailable of raw material they have been limited their market of those products. Their products price is little higher when compare to competitors but they still have demand because f its supreme quality of those products.

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SUGGESTIONS
The company can give more advertisement in mass media, it can also use other sales promotional tools to catch customers attention and increase brand loyalty. Through appointing more sales representatives, KSE can expand their sales and thereby increase in turnover. The company can reduce the cost of production by procuring raw materials from the nearest suppliers. The company can introduce professionals into the middle and lower level of management. Carryout more research in this field. By opening new branches at various parts of south India company can expand its business network.

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CONCLUSION
KSE Ltd. Is the pioneer industry in the cattle feed, through faces keen competition is all set to change the face of the organization the future. Its great vision that to be No.1 in south India can be achieved in a short span of time. The organization is also moving towards social development programs in order to deliver value to the society. The study also revealed that the organization is moving towards betterment of its people. As a pioneer in the solvent extraction industry, leader in cattle feed manufacture, and an emerging force in ice cream and a resourceful new entity in dairy development and milk products, KSE is determined to move with the times, taking on new challenges, achieving new milestones. Both the technology and its commitment are sure to payback within a short span time towards the achievements of its future goals. It is capable of converting its threats into opportunities with the guidance and control of the top management whose leader shipquality is impeccable. The track records prove it. By using new technologies, improved marketing strategies and rectifying existing problems the company is the looking forward for a more exciting future. By the excellent working of the company, I hope that it can change to a national brand in a very short span of time. It was indeed a pleasure and a varied experience being a part of the company and studying it as a whole. I am most happy and thankful to the company for providing me an opportunity and letting me have a great time with them. The study provided useful insights into the company and its core functioning areas.

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BIBILIOGRAPHY
Report and Journals Company brochures Wikipedia Annual reports of KSE ltd KSE Newsletters and booklets Marketing review- magazine Websites www.kselimited.com www.cattlefeedindustry.com

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