Organization Study at Adani Wilamar Ltd,Tungabadhra

Chapter- 1

Introduction about organizational study

&

Industry Profile

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1.1 Introduction about Organizational Study

Organizational functioning is an important factor for any organization to achieve

the desired goals aand objectives. This requires co-ordination
ordination at all levels to
smooth functioning. This report aims to understand the function of company
relations to all departments

The temporary position undertaking was directed for the range of 4 weeks which
fills the both need of giving the business alumni of high gauge why should read
excels on the planet from the very beginning.

As part of MBA program, at the end of Second Semester, we had to carry on an

internship, to understand the organization structure and their functions. This was a
great opportunity
rtunity to get the first hand information and understand the functioning
and adequate knowledge from various departments.

This study is based on the different aspects and dimensions of different

departments of the company.

Organizational study also help st

students
udents to improve their other personality
attributes such as get better oral and written communication, management, time,
and project management skills.

I have started my internship on 25/06/2018 to 21/07/2018

1.2 Objectives of Organizational study

 To know
ow about the company’s corporate structure and hierarchy of the
individual departments.
 To understand how the key business processes are carried out in
organizations.

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 To know about the organizations activities in all functional areas.

 Understand how inform
information
ation is used in organization for decision making at
various levels.
 To relate theory with practice.

1.3 Methodology of Organizational study

Secondary sources were used in this study.

1.4 Secondary data

Secondary data were obtained from the, instruction of staff and other departments,
websites, Slide Share, Linked in, company’s annual reports like profit and loss
account and balance sheet. Direct observations are used to understand the
production processes.

1.5 Limitations

There were some limitations in con

conducting
ducting the organization study at AdaniWilmar
Ltd.

 There were difficulties in collecting data from executives and managers due to
their busy work schedule.
 The reliability of data used for study is largely depends upon the companies
reports and the informa
information given by executives.
 Difficulty in meeting with all the top level management
 Certain areas are restricted, so a detailed study is not possible
 Time allotted for the study was insufficient, as it is 4 weeks.

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1.6Industry Profile

1.6.1 Introduction
Many varieties of oilseeds along with tree origin are cultivated in India. Among
these, the major oilseeds are soybean, cottonseed, groundnut, sunflower, rapeseed,
sesame
me seed, copra, linseed, castor
castorseed
seed and palm kernels. India occupies the
place of pride as the world's largest producer of groundnuts, sesame seeds,
linseeds and castor seeds.

1.6.2 Importance of edible oils in the country’s economy

Oilseeds and edible oils are two of the most sensitive essential commodities. India
is one off the largest producers of oilseeds in the world and this sector occupies an
important position in the agricultural economy and accounting for the estimated
production of 28.21 million tonnes of nine cultivated oilseeds during the year
2007-08.
08. India contr
contributes about 6-7
7 per cent of the world oilseeds production.
Export of oil meals, oilseeds and minor oils has increased from 5.06 million tons
in the financial year 2005
2005-06
06 to 7.3 million tons in the financial year 2006-07.
2006
In terms of value, rrealization has gone up from Rs.5514crores
5514crores to Rs.7997crores.
India accounted for about 6.4 per cent of world oil meal export.

1.6.3 Market research

According to data from market research firm Euro monitor International,
International the
edible oil category, which had overtaken da
dairy
iry to become the largest packaged
food segment a few years ago, grew 25.6 per cent to cross the Rs 1.3 trillion mark
in 2017. This is the first time any packaged food category has crossed the Rs 1.3
trillion marks.

Diary was the second largest with Rs 1.

1.22 trillion, 16.5 per cent higher than 2016.

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The packaged food market, including rice, pasta and noodles, stood at around
Rs.378
378 billion last years,, growing 23.6 per cent year on year, thanks to the
downside risks associated with these kinds of foods.

In fact, edible oil fo

formed over 30 per cent of the Rs.4.34
4.34 trillion packaged foods
market in India, compared to the 8.8 per cent share held by rice, pasta and
noodles.

“Growth is primarily coming from new consumers, who are shifting from loose to
packaged oils”,
ls”, said AtulChaturvedi, chief executive officer, AdaniWilmar, the
company that sells a number of edible oil brands.

“Packaged oil sales are growing at 2.5 times the rate of overall edible oil
consumption in India.

Increasing awareness for safe products, the food law administration restricting
loose product sale and the crackdown by the government on unfair trade practices
aided this growth,” said DeokiMuchhal, managing director of Cargill’s food
business in India.

According to Euro monitor, the rice, pa

pasta
sta and noodles category will grow faster
than others till 2022 with a 12 per cent cumulative average growth rate, followed
by breakfast cereals (10.6 per cent). Edible oil, though, is expected to maintain a
healthy rate of 9 per cent.

1.6.4Major
Major features of edible oil economy
There are two major features, which have very significantly contributed to
the development of this sector. One was the setting up of the Technology Mission
on Oilseeds in 1986. This gave a thrust to Government's efforts for augmenting
augment
the production of oilseeds. This is evident by the very impressive increase in the
production of oilseeds from about 11.3 million tonnes in 1986-87
1986 to 24.8
milliontonnes in 1998
1998-99. There was some setback in 1999-2000because
2000because of the

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un - seasonal rain followed by inclement weather. The production of oilseeds

declined to 20.7 million tonnes in 1999
1999-2000.
2000. However, the oilseeds production
went up to 27.98 million tonnes in 2005
2005-06
06 and was 24.29 million tonnes during
2006-07.
07. As per the 3rd advance estimate by Ministry of Agriculture, the
production of nine major oilseeds is estimated to be about 28.21 million tonnes
during 2007-08.
08. The other dominant feature which has had significant impact on
the present status of edible oilseeds or oil industry has been tthe
he programmer of
liberalization under which the Government's economic policy allowing greater
freedom to the open market and encourages healthy competition and self-
regulation rather than protection and control. Controls and regulations have been
relaxed resulting
esulting in a highly competitive market dominated by both domestic and
multinational players.

Sunflower oil is produced from the seeds of sunflower, a tall plant known for its
showy flowers. Sunflower seeds are rich in protein and yield a high quality
vegetable
egetable oil used in making margarine and cooking oil. Sunflower oil has a light
taste, is suitable for frying and has some health benefits.

1.6.5 World versus Indian oil seeds

The conventional basket of major oilseeds comprises of soybean (57 per cent),
cottonseed (12 percent), rapeseed (12 percent), groundnut (8 per cent), palm
kernel (3 per cent), sunflower seed (7 per cent) and copra (1 percent). These
figures are for 2007
2007-08.
08. The share of soybean production in the world’s total
oilseed production hhas varied between 55 and 60 per cent – the highest being 59.4
per cent in 2002-03,
03, and the lowest being 55.6 per cent in 2003
2003-04.
04.

India has gained importance in the world over the last few years by virtue of
becoming the world’s number one importer of edi
edible
ble oils and an exporter of
protein meals. The relatively cheaper logistics cost of supplying vegetable protein
to the importing countries in the Asian area has given India an edge over other

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exporting countries like from South America. Also its non

non-GMO
GMO protein
pr has been
able to attract a premium. Today, China and India are the two countries that the
world is scrutinizing with very keen interest. This is particularly on the
agricultural fronts as both countries are big importers of edible oils. China is also
the biggest importer of seeds and grains. India, however, still exports protein
despite a huge protein deficiency in the diets of the 40 per cent of the population
that live below the poverty line.

It is recognized from the above table that India is on

onee of the top three producers of
the world’s major agricultural commodities. It is number one in milk with 15 per
cent of the market share, third in the production of pulses with 24 per cent share,
and fifth in the production of oilseeds with 7 per cent sha
share.
re. India consumes about
US$ 200 billion worth of food per year. The country is self-sufficient
sufficient in food
grain needs and is able to feed its over one billion inhabitants. India is currently
producing about 240 million tonnes of food grains, and this shall grow
g by at least
25 per cent by 2020.

India has the highest percentage of arable land – 57 per cent versus 16 per cent
average in the rest of the world. Unfortunately, however, the productivity is very
low. Indian farmers and the administration are both sseriously
eriously perturbed by this
matter and are taking measures to amend the situation. Agriculture administrators
toured Argentina to study soybean cultivation and farm practices, so that the
productivity of the Indian soya crop could be increased from its present
pres dismal
state.

1.6.6 Edible oil scenario

The Indian edible oil sector has many typical characteristics distinctly different
from other countries – especially those in the western hemisphere. The oil basket
available to the consumers has m
many varieties – major domestic oils are:
groundnut, mustard or rapeseed, cottonseed, soybean and sunflower. Minor

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domestic oils are: rice bran, mahua (Madhucalongifolia), sesame, safflower and
coconut.

Imported oils are mainly palm, soybean and sunflowe

sunflower.
r. About 60-70
60 per cent of
groundnut and mustard oil, and almost 100 per cent of coconut oil is consumed in
crude form without refining because of their distinct flavors and aroma, all other
oils are marketed only after refining. Market shares of raw oil, refined oil and
Vanaspati (partially hydrogenated vegetable oil) are respectively 42 per cent, 43
per cent and 13 per cent.

The government has frozen the tariff value on import of oils and the present rate
of duty is nil on crude oils and 7.5 per cent on refined oils. This policy has
remained unchanged since 2008. Thus, the Indian market is being flooded by
imported oil – mainly palm, soya bean and sunflower. The South American
industries for soybean oil, Malaysia and Indonesia for palm oil have discovered
discove
India as a dumping ground for their produce. India still has an insatiable appetite
for edible oil as the income levels rise.

Over the past decade, world class edible oil refineries have been set up in India
where superior quality refined oil is prod
produced
uced at a low processing cost. The days
of small sized batch refineries of 50 tons per day capacities are over. However,
the capacity utilization of Indian refineries is still at a meager 35 per cent of
installed capacity. Refined soya bean oil is actively traded on futures exchanges
and accounts for their biggest turnovers. Thus, the Indian edible oil situation is
going to persistently influence the world demand and supply to a large extent.

1.6.7 Edible oil consumption in India

India is a leading
eading player in edible oils, being the world’s largest importer (ahead
of the EU and China) and the world’s third
third-largest
largest consumer (after China and the
EU). Each year, India consumes over 10 million tons of edible oils. Edible oils
have a high penetration of 90 per cent in India.

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However, per capita consumption of edible oils is around 11 kg per year. This is
considerably lower than in most developed countries. Palm oil (mainly
imported) and soya bean oil account for almost half of total edible
e oil
consumption
sumption in India, followed by mustard and groundnut oil. In India, most
vegetable oil is purchased by household or industrial buyers (food processors,
restaurants and hotels) for frying or baking needs and is sold as loose oil or
vanaspati (partially
partially hydr
hydrogenated vegetable oil). Only a small percentage of
edible oils are sold in branded form at the retail level.

Notably, India’s annual current per capita consumption of about 12.7 kilo
grammes is well below the world average of 20 kilogrammes, thus providing
provi
growth opportunities for the Indian edible oil industry. These opportunities have
attracted investments from some of the world’s leading global players.

1.6.8 Consumption pattern of edible oil in India

India is a vast country and inhabitants of sev
several
eral of its regions have developed
specific preference for certain oils largely depending upon the oils available in the
region. For example, people in the South and West prefer groundnut oil while
those in the East and North use mustard/rapeseed oil. Likewise, several pockets in
the South have a preference for coconut and sesame oil. In habitants of northern
plain are basically hard fat consumers and therefore, prefer Vanaspati, a term
used to denote a partially hydrogenated edible oil mix
mixture.
ture. Vanaspati has an
important role in our edible oil economy and its production is about 1.2 million
tonnes annually. It has around 10 per cent share of the edible oil market. It has the
ability to absorb a heterogeneous variety of oils, which do not generally
ge find
direct marketing opportunities because of consumers
consumers‟‟ preference for traditional
oils such as groundnut oil, mustard oil, sesame oil etc. For example, newer oils
like soya bean, sunflower, rice bran and cottonseed and oils from oilseeds of tree
and forest origin had found their way to the edible pool largely through vanaspati
route. Of late, things have changed.

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Through technological means such as refining, bleaching and de-odouraisation,

de
all oils have been rendered practically colourless, od
odourless
ourless and tasteless and,
therefore, have become easily interchangeable in the kitchen. Newer oils which
were not known before have entered the kitchen, like those of cottonseed,
sunflower, palm oil or its liquid fraction (palmole in), soya bean and rice bran.
These tend to have a strong and distinctive taste preferred by most traditional
customers. The share of raw oil, refined oil and vanaspati in the total edible oil
market is estimated at 35 per cent, 55 per cent and 10 per cent respectively.

1.6.9 Types of oil commonly used in India

India is fortunate in having a wide range of oilseeds crops grown in its different
agro climatic zones. Groundnut, mustard or rapeseed, sesame, safflower, linseed,
Niger seed or castor seeds are the major traditiona
traditionally
lly cultivated oilseeds. Soya
bean and sunflower have also assumed importance in recent years. Coconut is
most important amongst the plantation crops. Efforts are being made to grow oil
palm in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and
an
Andaman Nicobar Islands. Among the non
non-conventional
conventional oils, rice bran oil and
cottonseed oil are the most important. In addition, oilseeds of tree and forest
origin, which grow mostly in tribal inhabited areas, are also a significant
source of oil .

1. Sunflower oil
oil:
Sunflowers originated in North America and were then introduced into Europe.
They are believed to have been grown first in Mexico by the native Indians as far
back as 3000 B.C. The seeds were ground or pounded and used in flour for bread
bre
making. Spanish explorers introduced this exotic plant into Europe around middle
of sixteenth century. Still, it was greatly used for ornamental purpose, until it
was cultivated by the Russians for oil. The Russians cultivated sunflowers for its
oil in the middle of the eighteenth century, and production on a commercial basis

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started only in the nineteenth century. Two varieties were grown, the oil yielding
type, and another one for direct consumption.

Sunflower seeds were taken back to America aro

around
und this time, where new, high
yielding hybrids were grown. In the 1950
1950‟s,
‟s, sunflower oil was popularized as an
important vegetable oil all around the world. Sunflower oil is very popular in
Europe and it is the third most important vegetable oil of the wor
world.
ld.

Sunflower oil is especially suitable for frying, as it does not smoke even at high
temperatures. It can also be used for shallow frying and as salad dressing, as it has
a light texture and taste. One important non - food use of sunflower oil is use as
a
an ingredient in skin care products, as it is easily absorbed by the skin. Its use
ranges from use in lotions and creams to soaps, because of its light texture.

Also, the high linoleum acid content favors its use in soaps, as this gives it a skin
softening
ning quality.

2. Groundnut oil
oil:
Groundnuts have many uses. They can be eaten as straight food, used in recipes,
made into solvents and oils, used in make
make-up,
up, medicines, textile materials, peanut
butter, as well as many other uses. Popular confections made from groundnut
include salted peanuts, peanut butter (sandwiches, peanut candy bars, peanut
butter cookies, and cups), peanut brittle, and shelled nuts (plain/roasted). Peanuts,
served by them, are one of the most popular nuts in the world.

They are often

en eaten as snacks, served at cocktail parties and are sometimes added
as a nutritional side dish with lunch. Salted peanuts are usually roasted in oil and
packed in retail-size
size plastic bags or hermetically sealed cans. Dry roasted, salted
groundnuts are also
lso marketed in significant quantities. Groundnut is often a major
ingredient in mixed nuts because of their in expensiveness compared to Brazil
nuts, cashews, walnuts, and so on. Although peanut butter has been a tradition

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on camping trips and the like because of its high protein count and the fact that
it resists spoiling for long periods of time, the primary use of peanut butter is in
the home, but large quantities are also used in the commercial manufacture of
sandwiches, candy, and bakery products. Boiled peanuts are a preparation of raw,
unshelled green peanuts groundnut boiled in brine and eaten as a snack in the
United States. More recently, fried peanut recipes have emerged - allowing both
shell and nut to be eaten. Peanuts are also use
usedd in a wide variety of other areas,
such as cosmetics, nitroglycerin, plastics, dyes and paints.

Groundnut is often used in cooking, because it has a mild flavor and a relatively
high smoke point. Due to its high mono unsaturated content, it is considered
considere
healthier than saturated oils, and is resistant to rancidity. There are several types
of peanut oil including: aromatic roasted peanut oil, refined peanut oil, extra
virgin or cold pressed peanut oil and peanut extract

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Chapter – 2

Organizational Profile

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Company details
CIN( Corporate identification number) U15146GJ1999PLC035320

Company name AdaniWilmar Limited

Company status Active

ROC(Registrar of companies) Ahmedabad

Registration number 35320

Company category Company limited

ted by shares

Company sub category Non – government company

Class of company Public

Date of incorporation 22 January 1999

Age of company 19 years, 5 months, 7days

Activity Production, processing and preservation

of meat, fish, fruits vegetables, oils and
fats

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2.1 Back ground of AdaniWilmar Limited

Acquired at a cost of Rs 26crore, the Mantralayam facility is a fully integrated oil
seed processing factory and will serve as the base for AdaniWilmar's foray into
the south Indian market.

Taken over
ver earlier this year, AdaniWilmar has already completed expansion of
the facility to suit its needs. Processing and refining and packaging started from
May 1. The new unit will make it easier for AdaniWilmar to supply over 40 per
cent of all retail outlet
outlets in south India.

"AdaniWilmar has just begun packaging of refined edible oil at the Mantralayam
factory", said AngshuMallick, general manager, sales and marketing, of
AdaniWilmar.

With this move, its presence will grow from just 15,000 outlets in south
so India to
over 1.20lakh outlets, he added. The factory was taken over at a price of Rs
26crores, a sum of Rs 88-10crores
10crores will be spent on capacity expansion, network
stabilization and other factors.

"The Mantralaya processing facility is one of the mo

most
st integrated oil seed
processing factories with two independent refineries and excellent processing
facilities," Mallick stated. The facility has capacity of 9000 tons per month.

AdaniWilmar has lagged in the south India market so far. "According to a A.C
Nielson report, only one per cent of sales came from the south, while 33 per cent
of sales came from the north. But with this facility in place, we will increase stock
points from two at present to 11 within a short period", Mallick stated.

The Mantralayam
ralayam facility and a newly acquired processing factory in Rajasthan
will give AdaniWilmar additional processing capacity of 3000 per tones per
month. With price of edible oil estimated at Rs 50 per liter, monthly sales is
expected to increase by Rs 15
15-20crore,
crore, fetching additional revenue of about Rs
200crore through the two new factories.

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AdaniWilmar reported sales of Rs 970crore in the past fiscal. It expected sales to

touch Rs 1600crore by the end of the current fiscal, Mallick said.

Freight chargee was about Rs 2,300 per tones from Gujarat to south India. The
freight charge will come down to Rs 500 per tones from the Mantralayam factory.

2.2 Nature of the Business

Manufacturing and edible oil refining.

2.3 Vision, Mission, Quality policy

Vision
“A globally competitive, India focused MNC’S with leadership in edible
oil business providing branded products and services to the delight of
customer and stakeholder”
Mission
“To set a pattern of growth, distinct and unique, by being proactive
proac on both the
supply and demand side of global trade and to promote development of world
class infrastructure facilities”

Quality policy
Courage: we shall embrace new ideas and businesses
Trust: we shall believe in our employees and other stake
stakeholders
Commitment: we shall stand by our promises and adhere to high standard of
business

2.4Awards&R
Recognition

 According to a survey conducted by Business World in 2005, AWL was

one of the top three Food Processing Companies in India
 Fortune brand has be
been
en voted as the winner of Reader’s Digest Trust
Brand Award 2006, 2007 & 2008 under the gold category

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 Fortune was awarded the Globe oil Award 2006 for the Fastest Growing
Edible Oil Brand
 Mantralayam refinery was presented the Award for Second Highest
Processor
essor of Sunflower Seed Oilcake for the year 2005
2005-06
06 & 2006-07
2006 by
SEA
 Niryat Shree Gold Trophy (2004
(2004-05)
 Niryat Shree Gold Trophy (2003
(2003-04)
 Awarded as “Five Star Export House”.

2.5.Product
.Product Profile

Fortune Refined Sunflower Oil

 A light, healthy and nutrit
nutritious oil that is easy to digest
 Consists mainly of polyunsaturated fatty acids
 Low in saturatedfats and rich in natural Vitamins
 Goes through a highly specialized process of winterization that removes
almost all the wax content in the oil
 Sizes available Pouches - 500 ml, 1 Ltr, | Pet bottles - 500
00 ml, 1 Ltr | Jerry
cans - 5 Ltr, 15 Ltr | Tins - 15 Ltr, 15 kg

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2.6. Ownership
wnership pattern

Name Board Primary company Age

relationships

RajeshbhaishantilalAdani 31 Relationships Managing director and 54

B.Com director

Pranav vinodbhaiAdani 22 Relationships Managing director 40

GautambhaishantilalAdani 26 Relationships Adani ports and special 56

economic zone limited

Khoonhongkuok 28 Relationships Wilmar International 69

Limited

Chuephuayhee 3 Relationships AdaniWilmar Limited 64

2.7Feature
Feature growth and prospective
At AdaniWilmar, we are committed towards working for a healthy growing
India. We believe that the future of nation rests on the people. People, who don’t
just dreams, but aspire. With our wid
widee range of products we spread the goodness
and health. We nourish the dreams of our fellow Indians.

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With a vision to be a global admired leader in integrated agri

agri-business,
business, we shall
be known for our scale of ambition, speed of execution and quality of operation,
oper

AdaniWilmar is poised to lead the growth story of India food industry.

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CHAPTER-3

Mc Kinsey’s 7S Framework

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In McKinsey mode
model, the seven areas of organization
ganization are divided into the‘soft’
the
and ‘hard’ areas.
Strategy, structure and systems are hard elements that are much easier to identify
and manage when compared to soft elements. On the other hand, soft areas,
although harder to manage, are the foundation of the organization and are more
likely to create the sustained competitive advantage.

Hard S Soft S
1. Strategy 4.Style
2.Structure 5.Skills
3. System 6.Staff
7.Shared valves

3.1 Strategy
 As a brand, Fortune is associated with quality, health and taste. It
promotes family values through the share
sharedd pleasure of eating a home
cooked meal together. Fortune’s core proposition is built around the fact
that there is no greater joy than the joy of eating. This bliss is multiplied
several fold when good food is also healthy food.
 With a vision to be a glob
global
al admired leader in integrated agri-business,
agri we
shall be known for our scale of ambition, speed of execution and quality of
operation, AdaniWilmar is poised to lead the growth story of Indian Food
Industry.

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3.2 Structure
AdaniWilmar limited

 Autonomous Maintenances
 Focused Improvement
 Planned Maintenance
 Quality Management
 Development Management
 Education and Training
 TPM in Office (total productive maintenance)

Adani
wilmar
ltd

Autono Total Develp Educati

mus Focus
quality ment on and TPM in
improv
manage manage emant
manage devlop office
ment ment ment ment

3.3System:

 Formal and Informal procedures that govern everyday activity, covering

everything
erything from management information systems, through to the systems
at the point of contract with the customers (retail systems, call centre
systems, online systems, etc).

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3.4Styles:

 Create multiple drivers of growth by developing a portfolio of world class

cl
businesses th
the at best matches organisational capability with opportunities
in domestic and export markets.
 Ensure that each of its businesses in world class and internationally
competitive
 Benchmark the health of each business comprehensive across the
th criteria
of market Standing, Profitability and Internal Vitality.

3.5 Skills:
 Skills are the abilities that firm’s employees perform very well. They also
include scalabilities and competencies. Through skill, how the training
needs are satisfied to th
thee employee of different grades. The different on
the job and off the job training had given to the employees. ADANI
provides growth opportunities to employees according to their
qualification, experience skill and the contribution they make the
company. AD
ADANI
ANI is committed to provide the best possible training and
development program and learning opportunities for the growth of
individual employees
employees.

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3.6Staff:

 Staff is a process of accident human resource for the organization and

assuring that they have the potential contribution to the achievement of the
organizations. Adaniwilmar ltd is generally prefers to have highly
qualified and duplicated management professionals .

Departments Number of employees

employe

Autonomous management 40

Focused Improvement 30

Planned
lanned Maintenance 5

Quality Management 17

Development Management 60

Education and Training 15

TPM in Office (total productive 20

maintenance)

Total 187

3.77 shared values:

Values referred to the institutional standards of behaviour that strengthen

st
commitment to the vision and guide strategy formulation and purposive action.
The core values are shaped around the belief that enterprises exists serve society.
In terms belief profit is a means rather than an end in itself a compensation to

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owners
rs of capital linked to the effectiveness of contribution to society and the
essential ingredient to sustain such enlarged to societal contribution.
 Thus company has embraced an extended role of trusteeship that reaches
beyond the assets reflected in the bbalance
alance sheet to encompass societal
assets. An unwavering commitment to integrity, ethical conduct,
meritocracy, teamwork and aiding concern for stakeholders are at the heart
of yours company’s value system.
 Customer satisfaction Committed to total quality cost and time
consciousness
 Trust and team spiritInnovations and creativityRespect for individuals

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Chapter-4
SWOT Analysis

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SWOT analysis

Strengths

 Dominant player and largest seller of edible oil

 Uses health platform
 Mass market for edible oil through its low priced brand Crystal
 Strong distribution network
 High market share

Weaknesses
 Limited market penetration in rural area.
 Limited market penetration in food product.
 Price of product is slightly high that affect the demand4.Low advertising
ad
and visibility

Opportunities

Sharp increases in demand of branded oil
 High market awareness in metropolitan city of branded oil
 Health conscious people increasing4. Product line extension

Threats
 The treats of low price competition
 A large num
number
ber of domestic as well as multinational players
 Highly competitive industry
 Government policies and tax structure
 People reducing the use of oil due to health reasons

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Chapter-5

Analysis of Financial Statement

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5.1 Balance sheet of AdaniWilm

AdaniWilmar ar Limited for the year
2016-2017,
2017, 2015
2015-2016, 2014-2015. (Rs in cores)
Particulars 2016-2017 2015-2016 2014-2015
Equity share capital 109.98 109.98 109.98

Total share capital 109.98 109.98 109.98

Reserves and surplus 3657.20 3450.32 10168.08

Total reserves and surplus 3657.20 3450.32 10168.08

Total shareholder funds 3767.18 3560.30 10278.06

Non currents assets

Long term borrowings 1857.82 1615.79 2535.15

Other long term liabilities 78.16 552.59 250.59

Long term provisions

rovisions 16.36 9.12 5.69

Total non-current
current liabilities 1952.34 2177.50 2791. 43

Current liabilities

Short term borrowing 4905.40 4416.23 2635.20

Trade payables 3217.95 2964.98 5781.89

Other current liabilities 788.15 1248.15 961.19

Short term provisions

visions 27.27 30.02 193.69

Total current liabilities 8938.76 8659.38 9571.97

Total capital and liabilities 14658.28 14397.18 22641.46

Assets

Non currents assets

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Tangible assets 511.96 429.22 874.24

Intangible assets 650.05 654.07 23.43

Capitall working in progress 621.60 851.15 270.37

Other assets 9.37 0 0

Fixed assets 1792.98 1934.44 1168.04

Non-current
current investments 3090.20 1081.43 6953.42

Deferred tax assets 246.57 127.67 88.05

Long term loans and 1201.65

87.75 789.79
advance

Other non-currents
urrents assets 499.43 0 1.36

Total non-current
current assets 5716.93 3933.33 9412.52

Current assets

Current investment 1 1 1

Inventory 594.56 530.38 584.92

Trade receivables 2923.44 2641.97 3794.76

Cash and cash equivalents 364.21 147.07 238.25

Short term loans 3782.93 6923.67 8530.05

Other current assets 1275.21 219.76 79.96

Total current assets 8941.35 10463.85 13228.94

Total assets 14658.28 14397.18 22641.46

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Ratio analysis

5.2 Current Ratio

Current ratio= current assets

assets/ Current liabilities

 Current
ent Assets: Stock + Debtors + Bills Receivable + Prepaid Expenses +
Short Term Investment + Cash in Hand + Cash at Bank
 Current Liabilities: Bills Payable + Outstanding Expanses + Bank
Overdraft + Creditors

Table showing the current ratios for the three ye

years

Years Current assets Current liabilities Current ratio

2015 13228.94 9571.97 1.38

2016 10495.44 10226.03 1.02

2017 9422.88 8026.68 1.17

Chart showing the current ratios of the three years

1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2015 2016 2017

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Interpretation:

From the above table it is observed that Current Ratio is instable and fluctuating.
In the year 2014-15
15 the ratio is 1.38, In the year 2015
2015-16
16 the ratio has been
decrease to 1.20 times, where as in the financial year 2016
2016-17
17 the current ratio has
been at 1times.

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5.3Quick
Quick Ratio

Quick Ratio=Quick
atio=Quick assets /Quick liabilities

 Quick Assets: All current Assets except stock and prepaid expenses
 Current liabilities: All except Bank Overdraft

Table showing the quick ratio for the three years

Years Quick assets Current liabilities Quick ratio

2017 9313.04 8938.76 0.93

2016 11108.28 9659.38 1.15

2015 12635.04 9571.97 1.32

Chart showing the quick ratios of the three years

1.4
1.2
1
0.8
0.6
0.4
0.2
0
2015 2016 2017

Interpretation:

In the year 2017 the ratio is less than 1 it is said that company is not stable.

In the year 2016& 2015 the ratio is more than 1 it is said that company is stable.

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5.4 Debt equity ratio

Capital structure ratio: Debt/equity

 Debt = long term debt + short term debt

 Equity = equity capital + reserves and surplus

Table showing the debt equity ratio for the three yyears
ears

Years Debt Equity Debt Equity ratio

2017 6763.22 3767.18 1.80

2016 6032.19 35566.30 1.69

2015 5170.35 10278.06 0.50

Chart showing the debt equity ratios of the three years

I 1.5

n
1
t
0.5
e
0
r
2015 2016 2017
p
Interpretation
Interpretation:

From the above table it is observed that debt equity Ratio is instable and
fluctuating. In the year 2014
2014-15
15 the ratio is 0.50, In the year 2015-16
2015 the ratio has
been increase to 1.69 times, where as in the financial year 2016
2016-17
17 the debt equity
ratio has been at 1.80 time
times

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5.5 Equity ratio

Equity ratio = total
otal equity/total assets
 Total equity = Equity share capital + Reserves and surplus
 Total assets = Noncurrent assets + currents assets
Table showing the equity ratio for the three years

Years Total equity Total assets Equity ratio

2017 3767.98 14658.28 0.51

0.
2016 3560.30 14397.18 0.444
2015 10278.06 22641.46 0.453
Chart showing the equity ratios of the three years

0.52
0.5
0.48
0.46
0.44
0.42
0.4
2015 2016 2017

Interpretation:

This implies that of every $1 employed in the business, the contribution of share
holder in the year 2017, 2016,& 2015 is aabout
bout 51%, 44%,$ 45%. The creditor
contribution, therefore it could be 49%, 56%, & 55%.

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5.6 Debt ratio

Debt ratio = Total liabilities/total assets

 Total liabilities = total noncurrent liabilities+ total current liabilities

 Total assets = total non-currents assets + total current assets

Table showing the debt ratio for the three years

Years Totalliabilities Totalassets Debt ratio

2017 10891.10 14658.28 0.742

2016 10836.88 14397.18 0.752

2015 12363.4 22641.46 0.584

Chart showing the debt ratios of the three years

0.8

0.6

0.4

0.2

0
2015 2016 2017

Interpretation:

The ratios are greater than 0.5the company assets are financial through debt.

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Chapter 6
Learning and Experience

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Learning Experience
During this organizational study, I got the opportunity to study and know how
exactly the various aspects of the organization in practical sense.

In this organization all department employees in spite of being busy in their jobs,
responded and helped me to conduct project and provided the information what
all I required. I un
understood
derstood various functions and of the different departments of
Adaniwilmar.

My external guide Mr.Srinath sir, HR of this company made me to learn about the
organizational procedures and also he motivated.

At the beginning it was a difficult task for me to communicate with the people of
Adani. Later, As the time passed by the people from Adani is co-operative
co and
also shared their experiences with Adani and about their job.

.Apart from this things, I applied Mc kinsey’s 7S Framework with special

reference to organization under study
study- namely structure, strategy, style, staff,
shared values, skills, systems and lastly the SWOT analysis of the organization.

In fact this project was much valuable and added more value to my knowledge
and my career as well. I thank our Institute as well as the University for providing
such an opportunity of learning and understanding the various functions and
processes of the organization.

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Bibliography
Company’s annual reports: balance sheet for the year 2017, 2016& 2015.

Books:

 Financial management 2007

2007- by khan&jain 5th edition
 Research methodology 2008
2008- by C.R.Kothari 11th edition

Websites:

www.Adani Wilmar.com

www.Wikipedia.com

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