SKF Boilers and Driers

History
The SKF Group of Companies, are the global leaders in the designing, manufacturing
and marketing of food grains processing plants & machinery, through their flagship
company SKF Boilers & Driers Private Limited. SKF Boilers and Driers is located at
Bannadka on N.H.17 between Moodbidri & Karkala and is 5kms. from Moodbidri.
In 1993 Mr. G. Ramakrishna Achar founded Sri. Kalikamba Fabricators (S.K.F.) in a
hired shed. Beginning with the manufacture of small food grains processing machinery,
like cookers, the company grew from strength to strength. During 1990-2000 S.K.F built
large boiler-cum-driers, especially for the production of boiled rice, with 100 Ton/8
hours capacity. However, taking into account the changing trends in the harvesting of
paddy, the preparation of food and the eating habits of people, especially the youth. Mr.
Achar successfully designed, manufactured and marketed Vardan, the state-of-the-art
paddy boiler-cum-drier with unprecedental efficiency. Vardan is noted for its high
output, with remarkably low consumption of power and fuel, each plant enabling a rice
miller to save Rs.60 lakhs/annum because of the investment cost coupled with reduction
in the broken rice and savings in power and fuel. Moreover, the old plant was made of
M.S. But Vardan is made wholly of stainless steel and hence the rice produced is the
most hygienic and of international quality.
Today, in India the eating habits of people, especially the youth, have changed. They
prefer fast food and live a sedentary lifestyle. Hence, SKF produces steamed rice, which
is in great demand in the market today because of fast food. Their preference for fast
food has made the demand for steamed rice the predominant one in the rice market.
Vardan is especially designed for the production of steamed rice. Considering already
100 Vardan plants are functioning all over India, they together help save the nation about
Rs.100 crore annually in power and fuel, along with the reduction in wastage in the form
of broken rice.
The other product designed, manufactured and marketed by Mr. Achar that merits
recognition is the Dhanyalaxmi, the drier, made wholly of stainless steel. With Hot Air
Heat Exchanger, incorporated in it for the first time in Asia and Auto Control for
temperature. Dhanyalaxmi is ideal for farmers and millers for drying and storing of
harvested paddy. Their organizational structure is like Drier: lean, limber, adaptable and
innovative. Our newly constructed development centre in Moodabidre – complete with
an integrated Manufacturing and R&D department-plus our modern factory have
doubled our production capacities in recent years. Thanks to tremendous research and
development, competent, highly-motivated staff and innumerable Installation successes.
Harvested paddy has a high content of moisture of 19% whereas the moisture content
required for strong and milling is 12.5%. The traditional yard-drying of paddy is labour
intensive and drying is not uniform. As a result, such paddy contains undesirably high
content of broken and discolouration of the paddy makes it unhygienic and unsuitable
for export. Dhanyalaxmi is the answer to all these problems. It needs a low investment
of Rs.8 lakh and needs only 9 H.P of power thus making it ideal for both farmer and
millers. Food grains processing industry has been declared a sunrise Industry by the
Government of India. However, there is an acute shortage of qualified technicians in the
Rice Mill Industry. Their plants have been exported to 18 countries, credit to their
technological innovations and efficiency. We have succeeded in erecting an
infrastructure of 1000 million and achieving an annual turnover of 3000 million . Most
of their export takes place through ship transportation. They also export boilers and
driers to Sri Lanka, Nigeria, Bangladesh, Pakistan, Nepal, South Africa and so on.
Human Resource Management
Mr. Vivek Vallabh is current HR Manager of SKF Boiler & Driers Pvt. Ltd. He ensures
that the work is carried on smoothly and he meets the workers on regular intervals. The
interview will be conducted and candidates will be selected after written test,
presentation on topic and group discussion.
Currently there are around 300 direct workers working in the company and around 100
indirect workers. Among 300 workers there are about 15 female workers and the rest
are male workers. Their working hours begins from 9.00 AM to 5.30 PM and lunch
break time is 1.30 PM to 2.00 PM. Overtime duty ranges from 6.30 PM to 9.30 PM.
Most of the workers are either from diploma or ITI background.
Under the Minimum Wages Act, they are supposed to pay the workers certain slab of
salary. They provide bonus and incentives and they conduct health camp for employees
(once in every 6 months). Every morning, they conduct yoga and meditation for workers
for their good health. They conduct extra-curricular activities and they also have
committees for sports, fire and safety, canteen, etc. Annual day for workers is conducted
on 1st may. They create good atmosphere for the workers and also provide counselling
sessions for those workers who are not regular in their work. They provide training sessions
for the workers who are new to the company and even for the present workers. Workers
election is conducted every year to involve them in a democratic manner.

Production and operations Management

The production in this company is made in around 25 batches. The major raw materials
of this industry comprise pipes, tubes, Mild Steel sheets, Stainless steel sheets and
chequered plates. For the storage of these materials, they have a dedicated stockyard in
the manufacturing area. The production process takes place after collecting the
customer’s specification.
In SKF factory, the laser cutting machine is the heart of this industry which is imported
from Germany which runs for 24 hours continuously in 3 shifts. This machinery is auto
programmed to cut metal sheets precisely. The whole production in the factory is
dependent on this machinery.
SKF is equipped with modern technologies and they have improved their quality and
maintained a standard quality to face the competition and to maintain good reputation
in the market. The products are designed using CAD (Computer Aided Design). The
design is sent to the production department. In the first process, steel sheets are sent
through laser cutting machine. After this process, the processed steel is sent for bending
and the obtained steel is semi-finished goods. Inspection is done for semi-finished goods
and if any defects are found, then DRN (Data Release Number) note will be prepared
for the delivery of finished product. The product is sent for final inspection before the
delivery takes place. The incorporation of global technology and total automation
resulting in maximum output of excellent quality rice, with texture, aroma and taste of
international standards, are the secrets behind our success. Their four products in rice
boilers and driers comprise Vardan Sella Process, Vardan All in One, Vardan Classic,
and Dhanyalakshmi.
Vardan needs only Rs.25lakhs of investment, whereas the old plant required 70 H.P of
power. Vardan needs only 25 H.P i.e. each plant saves power worth Rs.4500 per day.
Vardan needs only 150k.g. of fuel thus saving Rs.4000 of fuel per day, whereas in the
production of old type of plant he broken content was 12%, in Vardan the broken content
is only 6%, enabling a miller to take a saving of Rs.8000 per day. Thus, each mill makes
a saving of Rs.16500 per day, for the miller, in power, fuel and broken content of rice.
Moreover, the old plant was made of M.S. But Vardan is made wholly of stainless steel
and hence the rice produced is the most hygienic and of international quality.

Harvested Coffee Beans & Pulses, which contain high moisture content of about 22%,
are not dried at the right time and uniformly, they lose their texture, temper et al and the
produce becomes powdery and unsuitable for human consumption, leave alone, the very
thought of exporting it to make big profit. Identifying this problem, SKF has introduced
three Coffee Driers- Multi Utility Drier, Aroma Classic, Aroma Superb Classic to
overcome this.
The solid waste generated from the factory is disposed off safely so that no harm is made
to the surrounding environment. They have a system of sewage plant for proper
treatment of waste water.
Marketing
The business model of company is Business to Business. They have marketing team
which is away from head office at different locations. The quality of the product
describes the company itself such that they don’t have to worry much about marketing
their products. The company receives orders from different parts of the country mainly
from paddy growing states and rice processing companies. The company gains new
customers by participating in the various international exhibitions held in places like
USA, Sri Lanka and India too.
Financial Management
There are four people in the Finance department managed by the director. Its authorized
share capital is Rs. 30,000,000 and its paid up capital is Rs. 18,900,100. The company
has an annual turnover of about 150 crores and the company aims to have an annual
turnover of about 1000 crores in the next 5 years. 60% of their revenue is from export
unit. There are several documentation process involved in export process which is
managed by the finance department.
Entrepreneurial profile
Mr. G Ramakrishna Achar is the CEO & MD of SKF Boilers and driers Pvt. Ltd. He
founded the company in 1993 with the meagre investment of Rs. 10000. He is a very
down to earth person. He believes in “high thinking- simple living”. When he started
this company, it was a small manufacturing unit with only 4 to 5 workers manufacturing
small food grain processing machinery like cookers.
Mr. Achar has started, for the first time in India, a comprehensive trade in Rice Mill
Technology at S.K.F.I.T.I. sponsored by S.K.F. Education Foundation (Reg.) the sister
concern of S.K.F. group of companies. S.K.F. Boilers and Driers Pvt. Ltd. Has a plan to
manufacture a 1000 Vardan plants and install them all over India, in the next three years.
The company provides employment to some 350 people, especially from rural areas.
Beside, Mr. Achar is known for his generosity and Philanthropy. He has provided
scholarships to students studying in schools and colleges, built houses for poor people,
etc.
Company’s Strengths
 Modern and up to date Technology
 It concentrates on providing customer satisfaction in both products as well as
services
  It is certified company under ISO 9001: 2008
 Inventory management
 Faster delivery of product
Company’s Weakness
 Unpleasant working environment
 Less advertisement of product
Special issues
Bad working environment
Since the majority of employees are industry workers, managing the workers is the
foremost issue of the company. When we visited the company, we found that there was
lot of noise and the working environment was not suitable for workers because of
industrial activity. Workers who are into activities such as welding, machine operators,
etc. also have bear the harsh sound making the working environment irritating.
Sometimes, the workers might get irritated and frustrated because of such loud noises.
Even payment to all workers will discourage those workers who work hard.

Solution
The company has to motivate their employees as much as possible in such environment.
The workers should be given small breaks between the hours so that he can get away
from the frustrating noise for some minutes and freshen himself. The company should
reward more to those workers who work more efficiently than others. The workers who
are into work such as welding, etc. should be away from the noisy workplaces.