Professional Documents
Culture Documents
Objectives of Study Scope of Study Research Methodology Limitation of Study - 7
Objectives of Study Scope of Study Research Methodology Limitation of Study - 7
Objectives of Study Scope of Study Research Methodology Limitation of Study - 7
1. Introduction -2-
Objectives of study -3-
Scope of study -4-
Research methodology -5-
Limitation of study -7-
Bibliography -73-
Annexures –I -74-
OIL PALM INDIA LIMITED
Introduction
2
OIL PALM INDIA LIMITED
INTRODUCTION
PALM OIL OR PALMOLEIN is the oil produced from the red oil palm tree (ElaeisGuineensis).
Palm Oil is extracted from the pulpy portion (mesocarp) of the fruit of Oil Palm.
Palm Oil is said to be nature‟s gift to the world consumed more than 500 years.Its nutritional
value ,health benefit and value as natural measure continue to be discovered even today. Oil
Palm India Ltd is started as a subsidiary of the plantation corporation of Kerala Limited with the
objective of developing Oil Palm cultivation. The functions of the organization mainly focus on
its departments functioning. The company is a joint venture Government of Kerala and
Government of India.
The study was conducted at OIL PALM INDIA LTD, KOTTAYAM. This aim at providing
management theories and its applications in organizations functions. Organization is the process
of establishing relationship among the members of the enterprise. The relationships are created in
terms of authority and responsibility an organization is an identifiable group of people
contributing their efforts towards the attainment of the goals. People form a groups or
organization to accomplish common objectives and pool their efforts by defining and dividing
various activities.
The companies have several scopes for its development with this study a proper analysis can be
made into the future opportunities of the company. The study is essential to the organization to
get a clear picture about the advancement that be made is the future.
The organizational study at OIL PALM INDIA LTD is conducted to get a view about the
functioning of the organization. As the project is a part of M.B.A curriculum a detailed study
about the departments of the company is essential. A mere theoretical study about the business
environments not enough to do an M.B.A.
3
OIL PALM INDIA LIMITED
The study was conducted at OIL PALM INDIA LTD, KOTTAYAM. The study gives the
detailed information about the company and its product. The company has developmental
programmes for employee and its product. The OPIL is one of the major palm oil producing
company in Kerala and have good demand for its product. However the company has been
facing some more problems. One of the major problems is the low plant utilization. Oil Palm is a
seasonal product then it leading to low plant utilization from August to January. The company
have some another problems. This study gives an insight into the strength and weakness of the
company.
The study was aimed at getting a clear picture of the organization structure to learnhow the
authority flows down the levels of the management. Apart from these present operations of the
company, familiarizing the duties and functions of various departments and how they interact
with each other were the objectives of the study and also to get a practical vision of the
organization apart from the theory which have been learned in the class.
The scope of the study is to get into direct conduct with the working of an organization through
various functions such as:
The scope of project covers the essentiality of functioning the above areas.
4
OIL PALM INDIA LIMITED
This study was helpful to provide knowledge for modern office and its function.
It helps to know about various machines used in the factory and office and its function.
It helps us to develop skill required for preparing, maintaining and handling of office record and
its functions.
It gives employment opportunities to a large number of people. Employees are the most
important factors in any organization.
The study will provide an overall idea about the working condition and employee‟s level of
satisfaction regarding various factors like salary, benefit, welfare and working environment.
RESEARCH METHODOLOGY
Research design indicates plan of action to be carried out in connection with a proposed research
work. The research design is simply a specific presentation of various steps in the process of
research. The researcher used analytical research design for his study.
The researcher used both the primary and secondary data collection techniques. The financial
data available from the annual reports and other records. But the functions of various
departments are made available through the primary data collection.
The term „research‟ refers to the systematic method consisting of enunciating the problem,
formulating a hypothesis, collecting the facts or data, analyzing facts and reaching certain either
in the form of solution towards the concerned problem or in certain generalization for some
theoretical formulation.
The nature of the study of this project is analytical study one has to use facts or information
already available and analyze these to make critical evolution of the material. Necessary data had
been mainly collected from the annual reports and records of the company. Relevant information
were also collected from various journals , periodicals, committee reports , connected with this
subject.
5
OIL PALM INDIA LIMITED
COLLECTION OF DATA
There are two types of collecting data; they are primary data and the sources available, it
becomes primary data. Since they are collected for the first time for the purpose of study it is
primary in nature.
The data for this project was collected from both primary data and secondary data sources.
When the researcher trying to collect the data for particular purpose from advantage of the
primary data are they are truthful and further suit the purpose. The collection of the primary data
is very expensive and time consuming.
The primary data collected during the study is the form of method:
Secondary data are those which had been collected by some other person for their purpose and
published. So the researcher is said to make use of secondary data if he makes use of data
already compiled by some other person. Secondary data are usually in the shape of finished
products. Collection of secondary data has advantages of being less expensive and less time
consuming. Secondary data need not be through scrutiny is to be made about its adequacy
reliability and suitability.
Secondary data are those data collected by others. The data was collected through
6
OIL PALM INDIA LIMITED
Website
Journals
Annual reports
Magazines
Text books
Company prospectus
****
7
OIL PALM INDIA LIMITED
Industrial Profile
8
OIL PALM INDIA LIMITED
Industrial profile
Palm oil is said to be nature‟s gift to the world. Palm oil was long recognized in West African
countries and among West African people it has long been in wide spread use it as cooking oil.
Consumed for more than 5000 years, its nutritional value as a natural resource continues to be
discovered ever today. First introduced to Malaysia in 1870 as an ornamental plant, the Elaeis
Guinensis tree, also known as oil palm tree, is now a leading agricultural of a wide range of
processed Palm oil product. Today Palm fruit oil and Palm oil products are used in many food
and non-food applications. They can be used as frying media and making margarines,
shortenings, soap,oleo chemicals and other products.
Oil Palm has a long, colorful history. Most of the planted palm in Malaysia was derived from
four palms established at the Bogor Botanical Garden in 1848.
Palm oil is obtained from Fresh Fruit Bunches (FFB) of Oil Palm Cultivations. There are several
commercial variants of Palm Oil available viz:
Crude Palm Oil when subjected to refining results to the other fractions. Palm Oil is form
of edible vegetable oil obtained from fruit of Oil Palmtree. It is the second most widely
produced edible oil and now it sine passed Soybean oil and become widely produced
vegetable oil in the world.
Crude Palm Oil (CPO) is obtained from mesocarp of the fruits and depending on the
variety and the age of the Palm oil, to bunch ratio is within the range of 25% to 28%.
Interims of productivity per unit area, the Oil Palm yields of Palm oil per annum is more
than 3700kg/hectare, compared to 875 kg/ hectare for peanut oil and 389 kg/hectare
soybean oil.
9
OIL PALM INDIA LIMITED
Crude palm oil is extracted from the fleshy portion of the fruit wall while the kernel he
crude Palm oil is deep orange red in color and is semi solid at a temperature of 20degree
centigrade. Palm oil contains an equal proportion of saturated and unsaturated fatty acid
containing about 40% oleic acid, 10% linoleic acid, 44% Palmitic acid and 5% stearic
acid. The unprocessed Palm oil is used for cooking in various countries. Palm oil is a
very source of Beta carotene, an important source of Vitamin A and it contains
Tecopherols and Tocotrienols, a natural source of Vitamin E.
Vitamin A and Vitamin E contents are the highest palm oil in comparsion with any
other types of oil and hence consumption of the same boosts health. By virtue of the high
vitamin contents the “Red Palm Oil is a nature‟s gift for the human begins”.
DEVELOPMENTS
Cultivation
Private sector
The oil palm was planted in Malaysia in 1870. The first commercial planting of oil palm in
Malaysia started in 1917 at Tennamaran estate Selangor.
Development was, however, slow and it took another 50 years before it began to pick up pace.
The impetus came in the late 1950s when the Malaysian Government embarked on a massive
agricultural diversification programme to case dependence on the traditional rubber for export
earnings. Many estates replaced rubber with oil palm and also opened up new lands for the
cultivations of oil palm.
Within a relatively short time, the planned areas under oil palm increased tremendously. In 1960
the total planted area was 54700 hectares it had reached 300,800 hectares. In 1993 a total of 2.3
million hectares had been planted and by the year 2000 about 2.9 million hectares are expected
to be planted with oil palm.
10
OIL PALM INDIA LIMITED
Originally, the cultivation of palm oil was limited to the plantation sector because of high level
of organization and capital investment required. The success of the Government land
resettlement schemes, started in the 1960, marked a pioneering effort towards introducing the
crop to smallholders. At the forefront is the Federal Land Development Authority (FELDA).
Other agencies involved include the Federal Land Consolidation and Rehabilitation Authority
(FELCRA), and the State Economic Development Corporations (SEDCs)
Reliability of supply
Being a perennial tree, the palm oil is harvested throughout the year. Its productivity per hectare
per year is very high. Palm oil has the advantage of reliable and regular supply compared to
some oils from annual crops.
Range of products
Technology has provided the industry with processing and fractionation techniques capable of
turning out wide range of products to suit consumers manufacturing requirements.
Its versatility makes palm oil a suitable raw material for many applications both in edible and
non-edible products. It has the flexibility to be used as it or in fractionated forms. Its resistance to
deterioration and rancidity makes it an excellent oil for deep flying.
Cost Benefit
Being naturally hydrogenated, palm oil requires minimal hydrogenation or none, whereas other
oils need to be hydrogenated. Furthermore, it is a natural product which contains no chemically
produced leans acid isomers which are produced in the hardening of liquid oils.
11
OIL PALM INDIA LIMITED
Nutritional value
Palm oil is one of the world‟s most widely consumed edible oils. Like other vegetable oils, palm
oil is cholesterol free, easily digestible, absorbed and utilized by the human body.
Since 1987 palm oil Research Institute of Malaysia has pursued a policy of supporting research
on the nutritional and health aspects of palm oil throughout the world. The consensus from the
findings of numerous human and animal feeding studies is that Palm Oil is indeed wholesome
and safe and its consumption in the habitual diet not only posess no risk to the development of
coronary heart disease but may even offer protection in view that the oil raises the level of the
good high density lipoproteins and lowers the levels of the bad low density lipoproteins.
In addition there is now increasing evidence to show that the minor components of Palm
oil such as the vitamin E, tocotrieols, and the carotenoids have several beneficial physiological
properties that are associated with a reduction of risk to coronary heart disease and some forms
of cancer.
Known to be the most productive oil crop, a hectare of oil palm can produce 5 tons of crude palm
oil. This is 5 to 10 times more than yield of any commercially grown oil crop. With the potential
, a palm oil industry in the Philippines at full- scale development could pay a significant role in
improving one balance of payment through the production palm oil as import substitute and as a
major export. It could also pay a leading role in the government‟s efforts of effecting the
amelioration.
Impoverished masses of nuclear farms and milling plants were set up in strategically in 304,350
lectures throughout the Mindanao areas identified by the southern Philippines . Development
authority as feasible for this crop and farmers, organized as cooperatives, participate as out
growers for the nuclear farms, nearest to them. The nuclear farms provides technologies and
planting materials , supervises their farming activities and buys their product for processing by
the milling plant into the crude palm oil and kernel oil for the domestic and export market.
12
OIL PALM INDIA LIMITED
Palm fruit oil is consumed worldwide in more than 100 countries. In some part of the world,
palm fruit oil often still consumed in its undefined state, as an ingredient of traditional dishes
where it contributes its characteristic golden red color and unique flavour. However, to most
users, palm oil is more familiar as a refined vegetable oil product purchased at their local store
product, incorporated into their every day foods…
CURRENT SCENARIO
Palm oil unique composition makes it versatile in its application in food manufacturing and in
the chemical, cosmetic and pharmaceutical industries. Its semi-solid physical properties are
needed in much good preparation. Its non-cholesterol quality and digestibility make it popular as
base material in the manufacture of various non-edibles products.
In the food industries, palm oil is the choice for manufacturing solid fat products. Palm oil olein
and stearin and popularly used worldwide in making, margarine, shortenings and confectionary
and in frying snack foods.
Palm oil is cost- effective as it needs not go through expensive hydrogenation process. Its high
content of natural antioxidants and its stability at high temperatures make it excellent as a deep
trying medium. It also gives fried products a longer shelf life while its bland taste beings out the
natural flavors of food.
Palm oil is also used in manufacturing of soaps, detergents and other surfactants. It is a good raw
material producing oleo chemicals, fatty acids, fatty alcohols, glycerol and other derivatives for
the manufacture of cosmetic, pharmaceuticals, households and industries products.
Oleo chemicals manufactured from palm oil and palm kind are now popular for the
manufacturing of environmentally friendly detergents as they are readily biodegrade.
13
OIL PALM INDIA LIMITED
Universal Robina Corporation
RFM Corporation
Mine Oil Mill Corporation
Oleo Fats
Royal oil Products
Pacific Oil Products
The above companies, except the Oil Palm India Ltd, which are engaged in downstream
processing of crude palm oil, produce the following:
GLOBAL SCENARIO
Palm oil with an annual production of 25-27 million tons is second most
produced in the world.
Malaysia (13 million tons) and Indonesia (10 million tons) are the major
producers. They together account for 85% production.
14
OIL PALM INDIA LIMITED
Bursa Malaysia Derivatives (BMD) is the largest futures market for crude palm oil.
Malaysia & Indonesian FOB prices set the mood in the physical market.
The 1980s saw a big shift of markets where by a large portion of the processed product was
exported to developing countries such as India, Africa, including Iraq and Iran, China and South
Korea.
INDIAN SCENARIO
India imports roughly 2.5-3.5 million tons of Palm Oil and its variants a year.
India imposes 65%duties on crude oil and 75% (imposed in 2003-2004 Union
Budgets) on Refined Bleached Palm Oil. The import ratio is highly dependent on
the duty imposed.
In addition to the customs duty, Government of India also imposes tariff value, on
which the customs duty is calculated irrespective of the actual price at which the
oil is imported.
In 2002-2003 India imported 21.5 Lakh ton of crude palm oil and 3.15 Lakh ton
of Refined Blenched Palm Oil. However in 2003-2004 till July from November
03 India has imported 13.5 lakh ton of crude palm oil and 4.8 lakh ton Refined
Blenched Palm Oil.
Kandla Mumbai, Kakindan are the major ports for palm oil entry to india and
major trading points too.
15
OIL PALM INDIA LIMITED
The supply- demand and price scenario of competitive oils, via Soybean oil.
The supply- demand scenario of all oils seeds in consuming centers.This is from these
countries.
The palm oil production cycle: April-December is peak production period.
Import regulation imposed in the importing countries.
Parison
Hindustan lever
Wipro Ltd
Godrej
SSD Oil Palm
***
16
OIL PALM INDIA LIMITED
Company Profile
17
OIL PALM INDIA LIMITED
COMPANY PROFILE
Oil Palm India Ltd was established as a subsidiary of Plantation Corporation of India Ltd in
1977. Subsequently in 1983 this became independent unit as a joint venture of the Kerala with a
share participation of Rs. 499.29 Lakhs and Rs. 679 respectively. The company was established
with the objective of developing oil palm cultivation in the state and to find a solution for the
shortage of oil. Company has got atotal area of 36 acre hectares of plantations spread over three
estates – Yeroor (2029.87hc), Cithara (1225.65hc)and Kulathupuzha (390.12hc) all in Kollam
district apart from this one for the production of hybrid variety of palm trees, aseed garden is also
set up at Thodupuzha. Initially it was intended to cultivate oil palm in 6000 hectares of land.
However due to the constraints in getting land allotted by government. The plantation has limited
to 3640 only and could not develop further cultivation since 1984.
For the processing of fresh fruits bunch (FFB) a mill was established with the state of the art
technology at an outline of Rs. 180.92 crores in the year 1999. The factory has the processing
capacity of 20 ton FFB/hr.
As part of the expansion activity, company has set up Oil Palm Seed
Garden at Thodupuzha with the financial assistance of Central Govt. and State Govt. under the
Oil Palm Development Programme.
The company has established a modern processing mill to process 20MT FFB/hr during the year
1998 with a total investment cost of Rs.19 crores. This is the largest oil palm mill in the country.
The company is now able to produce high crude palm oil from the FFB produced in its estate and
also procured from oil palm development programmeframers. A captive a power station is also
set up for the generation of electricity. The fibre of palm fruits is used as fuel, for generation of
steam to run turbine generator.
18
OIL PALM INDIA LIMITED
Palm oil form an essential part of oil palm industry. They are located in the close proximity to
plantations because FFB will process soon after harvesting its quality old is to be obtained.
Considering the fact that there is a bright future for the development of oil palm in the
country and consequent demand for hybrid seeds, the company has established almost modern
oil palm seed generation centre at the seed garden in Thodupuzha. The production and sales of
hybrid seeds have already been started. This is the premier institution in India which is capable
of producing high quality Tenera seeds. Major chunk of the demand for the seeds in the country
has either been net by import and in view of the commission of the project, the import of the
seeds can be substantially bring down. Hence the project has a pivotal role to play for the supply
for seeds for the development of oil palm cultivation in the country. About 5.50 lakhs are
produced in the garden at present. The production of seeds can be increased to 15 lakhs within a
span of 5 years.
Share Capital
The company has an authorized share capital of Rs. 120,000,000 and the paid up capital of Rs.
117,876,000.
Mission
The main mission of the Oil Palm India Ltd is to develop Oil Palm cultivation in the state to find
solution for the shortage of oil. And to develop the company as a farmer friendly organization
and for giving employment to people who are lower grade in the society.
19
OIL PALM INDIA LIMITED
Vision
Promote oil palm cultivation in small farmers holdings and introduced a new crop among the
farmers. To produce edible quality palm oil and production of various by products using the
waste material, after the extraction of the crude palm oil.
To take over and run the oil palm plantation corporation of India Limited and that
established or cultivated by the government of Kerala or by any other person for the
purpose of carrying on the objects.
To engage in and carry on the business of planter, grower and cultivator of oil palm ,
areca nut , coconut and other palms, groundnut , cocoa, rubber, tea , cardamom, tobacco,
cashew, pepper, ginger, tapioca, eucalyptus, sugarcane, cotton and or any other
agricultural/ industrial crop or produce.
To process and render all marketable produce grown by the company and to carry on the
business of processing, manufacturing and dealing in palm oil and other oils and any
other products in which oil or any other produce of the company is used.
To sell, purchase, export, import deal and trade in all produce grown or processed by the
company and all products manufactured by the company and other products used for the
purpose of growing, processing or manufacturing such products.
ESTATES
The company has got a total number of 3646 hectares of plantation spread over in 3
estates viz: Yeroor, Kulathupuzha and Chithera all Kollam District. Apart from this , for
production of hybrid variety of palm oil seeds , company has set up an oil palm garden at
Thodupuzha with the financial assistance of state government and central government
under oil palm development programme. The area in each estate is as follows:
SL NO Name of Estates District Area in Hectares
20
OIL PALM INDIA LIMITED
1 Yeroor Kollam 2029.87
2 Chithara Kollam 1225.65
3 Kulathupuzha Kollam 390.12
Board Of Directors
ADV. V .B. Binu Chairman
K.N. Ravindran Managing Director
Rachel Philip Additional Secretary (Agriculture)
S.L. Bhat Joint Secretary
Dr. M. Kouchubabu Director
MammenIype Ex- MLA
K.T. Kunhahammed Ex – MLA
SasidharanPilla Additional secretary to government
S. Jayamohan Director
M. SalimDirector
V. M. Joseph Secretary
Government Officials
UpmaChowdhary IAS
C. S. Yalakki IFS
Oil palm is capable of yielding 3.5tons of oil/Ha with good management all most 5-8 times
higher than other oil seeds crops give only an average yield of 600kg to 100 kg of oil/Ha. Hence
the potential of development of oil palm is unquestionable. In order to bridge the gap between
demand and supply of edible oils cultivation of oil palm was taken up seriously by Technology
Mission and Oil seeds and pulses (TMOP) to attain self reliance in edible oils Govt. of India
under TMOP introduced oil palm cultivation through Oil Palm Development Programme(OPDP)
21
OIL PALM INDIA LIMITED
in the identified potential areas of 11 states under integrated scheme of Oil seeds, pulses, Oil
palm and Maize(ISOPOM).
Oil Palm India Ltd is the nodal agency for the cultivation of oil palm in small and marginal
farmers and under OPDP scheme the centrally sponsored integrated scheme of oil seeds, pulses,
oil palm and maize.
The cultivation of oil palm in the state under the OPDP scheme connected during 1999-2000 and
covered 1300 Ha in 3070 farmers‟ field. Besides this Govt. of Kerala accorded sanction for
cultivating an area of 576 Ha from the year 2008-2009. In addition to this Govt. of Kerala
accorded sanction to cultivate oil palm in1000 Ha of Northern Malabar Districts (Malappuram,
Kozhikode&Wayand) under this scheme,
1 Trivandrum 11.20 4 6
2 Kollam 134.83 371 10 56
3 Pathanamthitta 311.48 954 8 152
4 Alappuzha 126.10 354 3 64
5 Kottayam 159.31 281 7 55
6 Ernakulam 88.25 279 4 26
7 Malappuram 63.79 81 9 18
8 Kozhikode 176.95 409 7 62
9 Wayand 228.08 337 61
TOTAL 1299.99 3070 54 424
Oil Palm India Ltd is a profit making company for the last 15 years and paying dividend to the
Central & State Govt for the last 12 years. Production and scale of crude palm oil over last 6
years are given below:
22
OIL PALM INDIA LIMITED
Period Qty of Oil production Qty of oil sold(MT) Revenue(Rs.in Lakhs)
(MT)
COMPETITORS
At present Oil Palm India Ltd has the advantage of “No Competitors in Kerala”.
The “Kerala State Productivity Council” has awarded the second “Best Productivity Award”
among medium industries in the state during the year 2002-2003 and “Best Productivity Award”
during the 2004-2005 among medium industries in the state recognizing the achievements and
efforts made by the employees.
FUTURE PLAN
At present Oil Palm India Ltd producing only Crude Palm oil. The company is planning to
establish a refinery. So that refining can be done and edible quality palm oil can be produced.
23
OIL PALM INDIA LIMITED
Product Profile
24
OIL PALM INDIA LIMITED
Product Profile
Oil palm is the richest source of oil. Oil Palm India Ltd was established in the year 1977 with the
objective of propagating oil palm cultivation in the country and more particularly in Kerala. The
various varieties that are marketed under the Oil Palm India Ltd are given below:
Palm Oil is one of the most commonly used vegetable oils. Oil Palm are grown in tropical
countries. Mainly South East Asia, India and some African and South American countries.
Before being refined, oil is called Crude Palm Oil.
Palm oil or palmolein is the oil produced from the red oil palm oil tree.The crude palm oil is
deep orange red in color and is semi solid at a temperature of 20 degree centigrade. Palm oil or
polyolefin is the oil is the oil produced from the red oil palm tree (ElasisGuincensis). Palm oil
extracted from the pulpy portion(Meso carp) of the fruit of oil palm. Palm oil contains an equal
proportion of saturated and unsaturated fatty acid containing about 40% of oleic acid, 44%
palmitic acid and 5% stearin acid.
Palm Kernel
Palm Kernel oil is “tropical” oil derived from seeds of oil palm tree fruit. Because this is mainly
a saturated oil (80%-85% Saturated)and low in essential fatty acids, palm Kernel oil may be
heated without the risk of creating harmful breakdown products(as is the case within saturated
25
OIL PALM INDIA LIMITED
oils, when heated) palm kernel oil is saturated oil, some research conducted in areas ripe with
live palm trees(where very flesh palm kernel oil is available) indicates that a diet high in tropical
oils may decrease cholesterol level, however other research contradicts these finding. As with
other saturated oils, palm kernel oil (especially refined palm kernel oil) should be used in
moderation or avoided in one‟s diet.
Palm Oil is of interest both- commercially and technically for the following reasons:-
It is readily available
It is economically priced, although straight comparisons of commodity prices don‟t tell
the whole story. Refined palm oil from Malaysia should be compared with partly
hydrogenated soybean oil.
It is a source of the solid fat needed for the functionally of many food facts, without the
cost of hydrogenation and the concomitant formation of translate fatty acids.
Palm mid – fraction is a major component of cocoa butter equivalent fat.
Palm oil and palm oelin have good stability at frying temperature. Large scale industrial
frying in Europe and Asia is properly the largest application of palm oil.
It is available in bulk in fractionated form. In addition to regular palm oil and palm
stearin, special oleins with iodine values up to 65 are available and a whole range of
softened, hard strains.
Palm oil is very versatile oil with a range of distractive properties which enable it to meet
most of the technological requirements for formulating fat products.
By fractionating palm oil, it uses are further increased. Hydrogenation and
interesterificationincrease in usage even there especially in making specialized and
sophisticated edible products.
Palm oil is the liquid fraction obtained by fractionation of oil palm oil after crystallization
at a controlled temperature. The physical characteristics of palm oil differ significantly
from those of palm oil it is available in a wider range of fatty acids and triglycerides
compositions. The hard fraction, palm stearin, is a very useful source of fully natural and
hard fed component for products such ad shortenings, party margine, venaspathi etc.
26
OIL PALM INDIA LIMITED
Use are classified into edible and non-edible uses.
EDIBLE USES
Margarine
Frying fat for snack foods /fast foods
Vanaspathi
Non- diary creamers
Ice cream
Cocoa butter substitute
NON-EDIBLE USES
The following table shows the price of crude palm oil and palm kernel produced by Oil Palm Ltd
during the year 2010-2011. The price of the products varies according to the quality and features
of it.
27
OIL PALM INDIA LIMITED
Organizational Chart
28
OIL PALM INDIA LIMITED
Managing Director
Manager Manager
Accounts Ministerial Staff (Factory)
Ministerial Staff
Draftman AM (main) AM (Operation)
Workers
29
OIL PALM INDIA LIMITED
Departmental profile
30
OIL PALM INDIA LIMITED
DEPARTMENTAL PROFILE
Departmentation is the process of grouping activities into nits for the purpose of administration.
In other words, it denotes grouping of related jobs and activities without violating the principle
of homogeneity over which an executives has authority to exercise and assert.
Every organization needs a well established administrative set up for efficient functioning. The
OPIL has established finance project, human resource development, commercial and engineering
departments are under the supervision of experienced and competent officers. All the
departments are under the control of department heads that are controlled by managing director.
Personal Department (HRD) plays an important role in the proper running of Oil Palm India Ltd.
Personal management is concerned with the human resource of the enterprise-Everyone from the
Managing Director to Chief Executive of the enterprise to the Mechanic, Sales man or Clerk is
personnel and is a part of the human resource of the enterprise. The primary responsibilities for
personnel management must be assumed by top management of the enterprise. The various
aspects of personnel function are procurement, development, compensation and motivation of
the personnel. Every manager has some responsibilities towards these areas, bent now it has been
recognized that these functions cannot be the specialty of every line manager.
31
OIL PALM INDIA LIMITED
The personnel manager organizes the personnel department to carry out the functions entrusted
to him. Personnel department develops the source of recruitment, selects the people and helps the
DEPARTMENTAL CHART
Senior Manager
Senior Assistant
First Assistant
Junior Assistant
Office Attendant
All the data of employees of the company are maintained by this department Senior Manager
(HRD) is the head and he is assisted by ministerial staff.
This department mainly deals with the process of planning, organizing, directing, and controlling
the procurement, development, compensation, integration and maintenance of human resource to
the end that individuals organizational and social objectives are accomplished. HR is the most
important assed of modern organization. Its aims are to bring people together to develop an
effective organization.
Human Resource Department is responsible for maintaining and ensuring the availability of
adequate human resource for the effective functioning. In order to attain the objectives of the
organization and division should ensure the maximum utilization of human resources through
32
OIL PALM INDIA LIMITED
jobs of employees. Human resource department is also responsible for the growth and
development of employees through the achievements of their careers goals.
Employment
Training and Development
Compensation
Integration
Working conditions
Welfare services
Personnel records
Industrial relations
DETAILS OF EMPLOYEES
RECRUITMENT PROCEDURE
For recruiting staff at Oil Palm India Ltd is done through internal and external sources.
INTERNAL SOURCES
33
OIL PALM INDIA LIMITED
Promotions
Transfers
EXTERNAL SOURCES
The external sources of recruitment is usually done through outside preview such as
Inviting tenders
Directly made by the company
Kerala Public service commission
Employment exchange
Professional employment exchanges
Advertisement
Notification in company notice board
Managers are appointed through professional employment exchange and giving advertisement in
news papers. Factory labors are outside the preview of PSC and they are appointed directly by
inviting tenders through news paper, notice board etc.
AGE LIMITS
The main age limit for direct recruitment to the posts borne on the roll of the company will be 18
yrs and the maximum age limit unless otherwise specified will be 35 yrs as on 1 st January of the
year in which recruitment is effected subjected to the usual relaxation to the O.B.C, S.C and S.T
communities, Ex- serviceman etc as in Govt. from time to time.
SELETION
34
OIL PALM INDIA LIMITED
Preliminary Interview
Written Test
Employment Interview
Job Offer
Employment Contract
Various techniques are adopted for the selection of candidate for the post application blank in the
company. Through this process the detailed bio- data of the applicant is obtained and their by his
educational qualification and previous experience if any can be identified. For clerical/staff post
usually Public service commission is authorized to make written test. There is a paid that
includes 3 Government Nominees and 2 Board of Director to conduct the employment interview
it there are more candidates. The company is following strict rule of conducting a medical
examination of the candidate to make assure that he is physically fit. As the organization is a
joint venture of Central Govt and State Govt (public sector) the selection is subject to the
reservation policy of the government.
The Human Resource Department of Oil Palm India Ltd is giving periodical training to their
employee.
35
OIL PALM INDIA LIMITED
In house training is carried out by:
These training usually given 2 or 3 times in an year. The training conducted in the organizational
itself. The representative of National Productivity Council, National Safety Council and
Management Association is appointing expert personnel as trainees. They are taking practical
and theoretical classes for the employees.
SPONSORED TRAINING
This training is usually given to managers and officers, outside the organization. This is
periodically conducted for developing new still and knowledge. The officers and managers are
given training in Malaysia, Nigeria etc. Some authorized institutions are sponsoring this training.
BASIC PAY
Basic pay fixed for the post and if there is a time scale, the stage is fixed in the time scale.
An employ in the time scale of pay promoted to a higher scale of pay shall draw as
initial basic pay on the new scale.
INCREMENT
1) In an incremental scale the increment in basic pay shall occur on the completion of
each specified period of service is provisional, temporary, probationary, officiating or
confirmed.
2) The period of service of an employ spend on an extra-ordinary leave on loss of pay
except sanctioned on medical group will not counter for increment.
3) Increment shall be sanctioned by M.D.
36
OIL PALM INDIA LIMITED
4) The board on grounds specially recorded may sanction to an officers, holding a post
in a time scale, premature increment with in a scale as a recognition of outstanding
ability at any time and when such premature increment is give the next and when
such premature shall not affect the seniority of any other employ. When occurs and
When payable. When an office is probation , increment will because due only after
5) completion of probation.
Contributory P.F
Subject to the provision of the contributory P.F act and rules the company will have a scheme of
contributory.P.F in which the employ contribution will be up 8 1/3 of the employment of the
employ as defined for the purpose in the E.P.Fact waiving a ceil ling of Rs 1600/- stipulated in
the act.
Termination
The company may at any time terminate the service of an officers giving 3 month notice for the
payment of usage in the lien of such notice. The service of probation and a trainee may be
terminated without notice and without assigning any reason thereof.
Resignation
An officer can resign from the service of the company after giving 3 months in writing or on
payment of 3 months‟ salary lien of such notice.
Gratuity
The maximum amount of gratuity payable shall be Rs 36000. The salary for the purpose of
gratuity shall mean total emoluments of the employ including basic pay and D.A but does not
include H.R.A, Bonus, ones times etc.
37
OIL PALM INDIA LIMITED
The M.D or any officers to who this power is delegated by the M.D may pass bills produced by
the employees who are not covered by the ESI or plantation labor act connected with medical
consultation attention or treatment for Him/her and or any member.
PROMOTION
All promotions to posts will be strictly on selection and the same will be made on the basis of
merit and ability. Promotion in the organization is based on overall assessment.
Seniority
Test
Interview
Attendance
Performance ete
Each of these criteria carries grades of itself. No employee has right for promotion to any post
solely on the ground of his seniority or in any grade on the ground of his having is held
additional charge of a post of having actual in the post or on any other ground. All promotions to
posts will be strictly on selections and the same will made on the basis of merit and ability.
However seniority will be counted when merit and ability are approximately equal.
WELFARE OF EMPLOYEES
In each estate it includes one welfare officer that provides service for the welfare of employees.
the welfare department is functioning by providing medical facilities to the employee in factories
and estates , it includes an hospital for this purpose. The hospital having service of male and
female Doctors and Ambulance service. The welfare department is providing scholarship for the
children of staff and lump sum grant, pension gratuity, bonus, advance,provident fund for
employees. The company has provided a school bus for the school going employee‟s children.
38
OIL PALM INDIA LIMITED
TRADE UNIONS
Trade unions in any industry are working for the benefits of its members. Likewise , trade
unions in OPIL play an important role in the implementation of labours welfare measures and in
acquiring the privileges of the workers. There are 7 trade unions functioning in the company
which workers trade union and staff trade union.
SAFETY REQUIREMENT
Subject to the provision of these rules the following kinds of leave may be granted to an
employee of the company:
1) Casual Leave
39
OIL PALM INDIA LIMITED
2) Earned Leave
3) Sick Leave
4) Maternity Leave
5) Extra ordinary Leave
Holidays
Holidays for the employees of any units the company shall be the same asdetermined under the
standing order of the workman. There will be in addition to weekly holiday as admissible under
the factories act/ plantation labour act. Holiday for the officier at the registered office shall be the
same holidays declared by the state government as holiday except second Saturday. In addition
to that every alternative Saturday shall also holiday for registered office.
Travelling Allowances
It is an allowance granted to cover the expense incurred in performing journey in the interest of
the company. No TA will payable for journey with the head quarters on which 8km from the
place of the duty.
All officers are entitled to 1st class railways fair and employ 2 nd class once in a year.
Journey by road
All officers will be allowed mileage at rates as followed by government from time to time for
journey in car. For bus fare for the journey will be followed.
Journey by air
M.D and head of the department as the head office and superintends may travel by air and will
be given actual plane fair.
Daily Allowance
40
OIL PALM INDIA LIMITED
The rules for payment of daily allowance shall be decided by the board from time to time.
Safety Requirement
1) An employee should report to his / her immediate supervisior, at the time of an accident
even it is a minor one.
2) An employee is liable to use equipment and dresses and follow the safety measures taken
by the management.
3) The employees are allowed are allowed to do their duty and use machine which are
allotted to them.
4) Every employees should use the safety equipment allotted by the management. The
equipment is not allowed to take for personal requirement
41
OIL PALM INDIA LIMITED
FINANCE DEPARTMENT
Finance management is concerned with decision with refused to the sizhe size of e and
composition of asset and the land and structure of financing. Although the importance of finance
functions depend largely on the firm.
Financial management is an integral part of the over all management of the firm.
Whenever economic affairs here progressed beyond the most elementary conditions production
and exchange, system of accounting have appeared. The accumulation of wealth and the the
growth of the capital, the expansion of the production and trade must create the needs for
financial information and control. Accounting as a technique of financial reporting, is a
reflection of those economic activities. Today accounting as regarded as a language of the
business and investment of administration and commerce.
Planning of funds
Raising of funds
Allocation of earnings
Controls of funds
Finance department commits of chief manager, junior manager and office assistant. The finance
department maintains all the accounts of the various department maintains all the accounts of the
various departments in an organization. It is the duty of the finance department to receive money
and make payments on behalf of the company. It also has to prepare the Balance sheet and profit
& loss account of the company. It also prepares the annual budget according to which the
expenses of the company are monitored. The finance department is a vital part in an
organization, as without finance the day-to-day activities of the company will not function in a
smooth and rapid way. It is the core of the organization.
42
OIL PALM INDIA LIMITED
The cash section and account section also forms part of the finance department. The recording of
day-to-day transactions, routine functions like sales tax, payments and receipts of cash
chequeetc, comes under the preview of accounts section. The accounts section also undertakes
the employee payroll function. The cash section deals with the disbursement of cash.
In Oil Palm India Ltd, the financial and accounting activities are controlled by the senior
manager (finance and accounts) station by the head office Kottayam. The objective of accounting
is to provide information to its various users, via the management and commerce, prospective
investors, creditors and other by identify relevant data measuring each transaction in terms of
money and recording the transactions. Finally this data are classified, summarized, interpreted
and the result is communicated to interested parties in the form of reports.
Duties of Department
Accounting Policy
43
OIL PALM INDIA LIMITED
Oil Palm India Ltd has generally mercantile system of accounting. All items of income and
expenditure are accounted for us and when occurred and all figures are stated at their historical
cost. Capital work in progress is started at in current during prior to commissioning including
part payment to contractors.
Provision for gratuity is made on the assumption that all the eligible employees of the company
retain as on the balance sheet date. Fixed assets are started at their original cost less depreciation.
The company has been consistency in following written down value method of charging
depreciation. Other accounting practices are constituent with the generally accepted accounting
practices observed in plantation industry.
Auditing
There is an auditing system in the company which consists of two and its every year. They are
as follows:
44
OIL PALM INDIA LIMITED
Internal Audit
External Audit
The external audits are a statutory requirement and the auditors are appointed by the controller
and auditor general. This is done to check whether every process in the company compliance to
the rules and regulations. After completing the audit process , the report is sent to the controller
and Audit General for his approval.
Budget
The are three accounting sections at OPIL, namely Yeroor, Chithara, Kulathupuzha. The head
quarters of OPIL has been performing at Kottayam. All the operation relating to accounts are
done by estate managers and he also done the budget preparation based on the crop study and
flower counting. In the budget preparation, the manager will compare the previous year budget
and estimate the expenditures in the coming year.
Finance and Accounts department of Oil Palm India Ltd is responsible for all financial and
accounting matters of the company. They maintain and up keep all books of accounts and
corrected reports. They have responsibilities of maintains and preparation of budget.
Arrangement of statutory auditing and internal auditing come under their preview. It is their
responsibility to ensure the expenditure is with budgetary provision.
Records of Transactions
The first step of accounting is the recording of transactions. All transactions may be groped as:
Buying Transaction
Selling Transaction
Payment Transaction
Cash Transaction
Instead of recording all kinds of transaction in one journal, it found to be bank column. The
cash book is provided with bank columns on either side to record payment into and withdraws
45
OIL PALM INDIA LIMITED
from the bank account. Just as cash receipts entered on the credit side. Such cash book operates
as a bank of original entry and at the same time provides the ledger account of cash and book
transactions.
Various source documents like those that invoice receipts and vouchers are used in this
company. These documents provide written evidence of a transaction has taken place. The
correctness of recorded transaction can be verified at the later state by referring to the concerned
source documents. The verifiable objective for recording the transaction to books of accounts.
All plants have independent account and all are reconciled to head office.
Final account or financial statement of a business consists of trading and profit and loss account
and balance sheet. While trading and profit and loss account is prepared to arrive the net profit or
loss for a certain period, the balance sheet is prepared is to be show the financial position of
business usually on the last day of accounting period. The trading and profit and loss account is
in the nature of an account where as balance sheet is in nature of a statement. The accounting
period of Oil Palm India Ltd is from 1st April to 31st March. The finalization process starts from
31st March onwards. Finalization of account starts with the closing in hand and each with
preparation of annual report.
Departmental Structure
Managing Director
Senior Manager
(Finance)
Manager
(Accounts)
Ministerial Staff
46
OIL PALM INDIA LIMITED
Commerce Department
Senior Manager
Secretary
First Assistant
Draftsman
Advertisement Strategies
The major product of the company is crude oil and the company is making a bulk selling to the
customers through inviting tender and purchasing of the palm nuts by giving quotation. Tender is
invited by giving advertisement in newspapers, company notice board etc. Most of the customers
are previously known to the company like Paris on Foods Private Ltd, SSD oil mills, Ruchi Soya
Foods, Godrej Foods, HLL.
Notices regarding tenders are advertised in newspaper, company notice board etc for attracting
prospective sellers of palm to quote their rates for supplying goods specified in the notice. When
a tender is accepted the successful tenders has to sign a contract to do what he has promised.
For the purchase of Fresh Fruit bunches (FFB) from private farm holders the quotation by letter
of enquiry is given. The supplies are asked to quote their rules and terns of payment for the
goods the company is willing to buy for them. In sending quotation itself the method of
transport, place and time of delivery, packing and forwarding changes, charges on account of
sales tax, freight and insurance are mentioned. The quotation given should be at lowest prices are
47
OIL PALM INDIA LIMITED
possible. Hence, the company has a benefit in inviting tender as all of their customers are
previously known to them and they have good business dealing with them for the last few years.
Pricing
Pricing of crude palm oil is always based on the market condition prevailing that pricing is
fluctuating according to the supply and demand condition. The company‟s high demand for
crude palm oil than what they produced and supplied, mainly because of lack of cultivation land
for palm. But now a day‟s more substitute oil use importing from aboard because of high
demand for oil and low tariff rates.
Distribution Channel
The company is not entered in oil refining. So that there is always a bulk purchase of crude oil
from the company to other oil refining companies. There are no intermediaries between the
producers and buyers.
Oil Palm seed garden project is being developed for the production of hybrid variety of oil palm
seeds. From seed center about 5 Lakhs hybrid variety of oil palm seeds are producing annually
to cater the needs of farmers in Kerala and also central government.
Action has already taken to increase the production of spouts to 6 Lakhs from the current
financial year onwards.
48
OIL PALM INDIA LIMITED
PRODUCTION DEPARTMENT
PRODUCTION
Production Department is the process or procedure of transforming a set of input like men,
machine, materials, information, energy etc into a specific set of outputs like product and service
in proper and service in proper quality and quantity to achieve the objective of enterprises. Thus
production is characterized by tangible outputs, outputs that customers consume.
Production function is an important function of Oil India ltd. Most of the other activities in the
enterprise revolve around this function. Therefore it is essential that production function is
managed properly so that it may contribute effectively to the objectives of the enterprise. The
main aim of the desired goods and services are effectively and efficiently.
A) Primary Objectives
Good quality
Optimum quantity
Appropriate cost
Timing
B) Secondary Objectives
Men
Machine
Material
Services
Technique
The plant has the capacity to process up to 20 tons of FFB/hr. The production of oil varies
according to the seasons, as oil palm is a seasonal crop. The period from February to July is peak
season. Then they process up to season i.e. from August to January, the production will be much
less may be 100 ton/month.
49
OIL PALM INDIA LIMITED
DEPARTMENTAL CHART
Senior
Manager
Stock
Assistant Factory
&
Manager(Q.C) Manager
Dispatch
The Engineering Department handles the maintenance activities of the organization. Senior
Manager is head of the department and he is assisted by a manager, a deputy manager and three
assistant managers. There is several production staff for each estate and factory to make the
working of the company smooth.
50
OIL PALM INDIA LIMITED
The production and processing of raw material which are mainly includes in production
department of Oil Palm India Ltd. Production of raw materials takes place in three estates
namely Chithara, Yeroor and Kulathupuzha. Processing of raw material takes place in Yeroor
mill. In OPIL the raw material is Fresh Fruit Bunch or FFB or Palm Fruit. They produced the
FFB from their own estates.
The workers in the estate are mainly known as cutters and carriers. All cutters are male workers
and the same time all carriers are female workers. Cutters have the responsibility to harvest the
fresh fruit bunch and female carriers are collecting the FFB to the destination. These FFB‟s are
transported to the Yeroor mill foe the processing. The fruits are harvesting at the ripen stage
and one of the features of this stage is that the fruits become radish is colour. Thr Palm tree is
grown at wet kinds. The palm tree cultivation is based on rain feed cultivation.
The company had established a modern processing mill to process 20 MT FFb/ hr. A captive
power station is also set up for the generation of electricity. The fibre of palm fruits is used as
fuel for generation of stream to the turbine generator.
PRODUCTION PROCESS
Fresh Fruit Bunches (FFB) harvested from Oil Palm Plantations is highly perishable and require
processing within 24 hours. Delay in this adversely affects the quantity and quality of palm oil.
The process consists of extraction of Palm Kernel Oil(PKO) from the Kernel.
FFB Reception
Several modern mills are equipped with the following in the reception area of the mill:
51
OIL PALM INDIA LIMITED
Sterilization
On arrival at the mill the fruit is sterilized. One of the effects of this is to inactive the fruit
enzyme. Once this enzyme has been inactivated the rise of the
FFA is virtually stopped. The sterilizer process is done 1.5,2.5,3.5,5,7 and today 10 tons capacity
FFB cages which are pushed into long cylindrical steel vessel with special doors and subjected
to stream at approximately 3 bar for about one hour. The objective after harvesting is to sterilize
the fruit as quickly as possible with the minimum of handling and damage. In addition to
arresting the development of FFA contact, the sterilizing of fruit also facilities:
The purification of palm oil by coagulating and mucilaginous matter and thus
preventing the formulation of emulsion during verification of the crude oil.
The extraction of the crude palm oil by freezing the fruits from the bunch stalks
and by breaking the oil cells the mesocarp.
Sterilization is a simple process but it is essential, for the proper operation of the
mill so that it is done correctly. This operation is the largest user of steam in the
mill.
Stripping
After sterilization the sterilized fruit in cages are their winched out of the sterilizer vessel by the
arrangement of Bellard and Winch and their placed in the tippler machine for emptying the
contents of cage onto a scrap type- conveyor. This is then transported to the thresher machine for
stripping of the friutlets from bunch. Such conveyors and bucket elevators then transfer the fruit
to the pressing or extraction station.
Oil Extraction
The efficient extraction of crude oil from Tenera fruit has prescribed problems but these have
been overcome by the development of continuous screw press which is new used in all modern
factories.
52
OIL PALM INDIA LIMITED
The fruit from the stripper passes to digesters, which complete the breaking of the oil cells
with moving arms. Digesters have a capacity of above 3 cubic meters. The fruit mash then passes
to the screw presses which press the crude oil out through holes in the side of the press cake. The
pres cake which9 is discharged from yhe end of the press, contains the fibre and the nuts.
a) The crude oil which consists of water, dirt and palm oil. This is passed to the purification
section.
b) Nuts : 14% of the FFB is separated by the depericarper and kernel plant for the recovery
of the kernals.
c) Fibre : approximately 15% of the FFB weight with moisture content of 37 %. The
residual oil content should be between 6% and 8% of oil to dry filers.
The filers should also retain as far as possible the phosphatides and other non glycosides
impurities. There fibre is conveyed to the extraction section is important. Unsatisfactory
practices such as excessive drainage of the crude oil before the extraction press leads not
only to purification problems and lasses but also to the higher absorption of iron by the
palm oil.
The importance of reducing the absorption of heavy metal, copper and iron is indicated by the
tobox value. For the production of superior quality palm oil stainless steel moving the wearing
parts should be used for extraction units.
Kernel Recoveries
The conditioning of the nuts starts in the sterilizer and the separation starts in the screw process.
After the screw the nuts and the fiber traverse a heated breaker conveyor which further separates
them and remove moisture from the fiber . The fiber and nuts then passes into a pneumatic
separating column called the “winnowing column‟‟ fitted wit IC damper in operation , depending
on the number of presses in operation . The fiber is blown into a cyclone close to the boiler and
the nuts which removes any attached dirt or fiber and tramps irons.
53
OIL PALM INDIA LIMITED
The nuts are conditioned in nut silos before being cracked centrifugal nutcrackers and in present
day ripple mills. After cracking , the cracked mixture is separated in the double winnowing
separating column for dry separating system or separated in hydro cyclones or clay baths.
These processes are wet. A modern clay bath separator is more efficient than a hydro cyclone
separator when processing more than 15% dura material in the cracked mixture. A supply of
suitable clay at the of approximately 450 kg to 100 tons of FFB is necessary for the clay
separator system. Bath systems depend upon the density of the shell being greater than the
density of the shell being greater than the denist of the kernals. The higher yield of palm kernel
compensates the addition cost of clay or kaolin required for the hydro-clay bath separate process.
The shell and kernels are washed and the kernels are passed to a kernel dryer to normalize the
moisture content of 7 % so as to minimize the development of FFA during storage and shipment.
It is also advantage to sterilizer the kernels before shipment of storage with steam at atmospheric
pressure. Kernel plants designed for Dura derived nuts are not suitable for the processing of
Tenera derived nuts. There have been a number of experimental designs, which have proved
failure. Caution and a wide experience are required in selection the proper equipment and design
for kernel recovery plant.
PlantOil Purification
The modern purification or oil clarification station is designed to recover and purify the the crude
oil as quickly as possible with the minimum heating and exposure to air. This is to minimize the
damage by the exposure of crude oil to air at high temperature. The major contribution to poor
quality oil is oxidation.
Oxidation measured by the totox value starts whether oil is above 60 degree
Celsius and exposed to air during processing, storage and shipment.
Crude oil does vary in compensation and therefore water dilution is a means of
stabilization to provide an accurate consistency of the CPO mixture before the classification
process. Therefore the selection and installation of the automatic dilution control is extremely
important.
54
OIL PALM INDIA LIMITED
Utilization of exiting of existing energy resources is indispensable not only for large industrial
process but also for small production plans, particularly for oil palm mills where the balance
between heat and power are required for the production process which is the pre-condition for a
combined “heat and power scheme” or commonly referred to as “co-generation system “ solid
waste fuel in the form of fuel in the form of filter and shells, which are by products of the
proceed are utilized as fuel for their bailer. This steam generated is used for the factory purpose.
Steam is required at an appropriate rate of 500 kg/hr/ton of FFB. The water for
steam production is obtained by building two dams across the nearby river. This water is
thoroughly purified in a dematerializing plant passing through two stages known as “Stroke
Acid” containing strong base which removes the ions present in the water. After this the water is
adjusted to a PH value of 8.5 taking care to prevent scale formulations along the internal tubes
and walls of the boiler and this not to damage them.
Steam is generated from the boiler at a pressure of 22kg/cm2 and at a temperature range of 235 -
265 degree Celsius . this pressure and temperature is higher than that required for the process.
First this is expanded in steam turbines. Sterilization of FFB and heating system in the process.
The energy released during the expansion of the steam is converted by the turbines into
mechanical power to drive an alternator.
Effluent Control
The total effluent is effluent is approximately 0.8 tones /tones of FFB, which is made up of 0.15
tones sterilizer content, 0.45 tones from the clarifier station, 0.08 tones from the Kernel plant and
0.12 tones from the process cleaning. The total liquid effluent will include the wash water . The
effluent is not toxic; but it has a Biochemical Oxygen Demand (BOD) of above 25,000 which
makes it objectionable to dish life when introduced in relatively large quantities is water ways
acid rivers. The effluent is treated by a process, which required an area of 4 to 10 hectors. This
includes 65-75 days retention time in eight ponds after which the water is used for irrigation
purposes in the estate of the company.
55
OIL PALM INDIA LIMITED
The plant has a capacity to process up to 20 tons of FFB/Hr. However; the production of oil
varies according to the seasons, as oil palm is a seasonal crop. The period from February to July
is a peak season. Then they process up to 1173FFB/ week ton/day of oil \. In the lean season, ie
from August to January the production will be much less, may be 100 ton/month.
Warehouse
The company has got a warehouse for temporarily for producing crude palm oil before
companies winning the bid for it will collect it here will not more than 500 tons of oil in the
warehouse at a time as this will be periodically removed.
The company is not entered in oil refining so that there is always a bulk purchase of crude oil
from the company to other refining companies. There is no intermediary between the producer
and buyer.
Project Department
Project department is concerned with the development of new projects and research for it the
expansion of the company. It takes necessary step to formulate new plans for the fulfillment of
its vision is to expand the company‟s horizons. The verification of the viability of the project
and the execution of the same is maintained and controlled by the Senior Manager project.
Departmental Structure
The department has one senior manager and the manager of OPB. Assistant manager (estates and
assistant manager (OPDP) come under him.
56
OIL PALM INDIA LIMITED
Senior
Manager
Manager(OPB)
Assistant
Assistant
Manager
Manager
(Estates)
(OPDP)
Ministerial
Field Staff
Staff
It has been proposed to set up a kernel oil extraction plant with 1 ton/hr capacity with an
investment of Rs 193 Lakhs to produce kernel oil by processing the kernel obtained from palm
fruits. Government sanction for the project is awaited. It is expected that the project can be
completed during 2007-08.
The company is implementing oil palm development programme, centrally sponsored scheme to
promote cultivation among small for district schemes are being implemented scheme to promote
cultivation among 4 small district schemes are being implemented with the following targets.
57
OIL PALM INDIA LIMITED
Population of oil palm cultivation among shall and marginal farmers with a target of
1000Ha.
Development of oil palm cultivation in 200 Ha in kariland as demonstration plot. Three
different field have been identified for the scheme in two districts of Kottayam and
Allapuzha,84.63 Ha has been development under the scheme(In
needuskunnapadasekharam) in kottayam district participating 137 farmers.
Commencement of OPDP scheme in 200Ha in Malabar areas, especially in Kozhikode,
Malappuram and Kannur district .
Seed garden at Thodupuzha for production of hybrid seeds for promoting oil palm
cultivation India.
Oil programme
A special hybrid variety of seeding called “Tenera‟‟ required for the cultivation
will be made available to the farmers at a subsidiary rate of 75%..
The technical advice required to find the suitable land and planting the seeding
will be provided.
For the first 4 years, the farmers will be given an amount not exceeding 50% of
the cost of cultivation as subsidy per year as follow:
Year RS
1 4600
2 3300
3 3500
4 4100
Total 15500
58
OIL PALM INDIA LIMITED
Expansion Plans
A proposal suggesting the setting up of a unit extracting the palm kernel oil at the factory at
Yeroor is submitted to the government. The work cam be completed within 6 months, once the
approval is obtained.
The computer utilization of the organization is right now just in the developing stage. The total
number of the systems is 14. Out of which 9 systems in Head Office, 2 in estate, and 3 in the
factory. The computers in the head office are inter connected through a LAN network. The
software used for inter connectively is the Novell Netware. The operating systems used are
Windows 95 and Windows 2000. The administrative screen is Dos based. Users are given access
to the system using a username and password, which are nominated by the computer operator.
Even though the computers within the head office are inter connected, there is no connection
between the head office, the factory and the estates. All the administrative tasks and decision
making are one at the head office. Files are manually brought to head office from estate and the
factory which is then entered in the head office. Computers are used only for correspondence.
Departmental chart
Senior Manager
Secretary
First Assistant
Draftsman
59
OIL PALM INDIA LIMITED
Marketing management is the art and science of choosing target markets and getting keeping
and growing customers through creating delivery and communicating superior customer value.
These are no marketing activities going on at OPIL but only sales. The sales are done through
process of bidding.
Tender Invited
Advance Received
Confirmation Of Tender
Consignment Note
Delivery Adivce
Invoice
a) The tenders are invited through advertisements in national news papers mostly in
English.
b) The party quoting the highest price is given the sales.
60
OIL PALM INDIA LIMITED
c) Advance is received in advance from bidders.
d) After this a confirmation of tender is sent to the property.
e) A consignment notice is sent to the buyer which acknowledges and sends back to the
organization.
f) A delivery devise is issued after this.
g) After this an invoice is generated to be forwarded to the finance department secured.
h) Tenders are sanctioned by the managing director in the tender register only after that the
sale processes is completed.
I. The sale is ex-factory and the price is to be quoted for delivery to the items at the
factory.
II. The price shall be quoted for unit of one metric tone and shall be firm and shall
not be allowed to be reduced on any account.
III. All taxes, duties, cesses, or any other statutory levies applicable from time to time
shall be extra payable by the bidders.
IV. The quotation shall be accompanied by a closed demand draft for the following
amount indicated against each item favoring Oil Palm India Ltd, payable at
Kottayam as earnest money deposit.
V. If any breach of breach of terms and conditions/ failure to honour the conditions /
failure to honour the contractor if any default is committed by the bidders, the
EMD shall be liable to be forteited and the bidder shall not be entitled to raise any
claim for the same.
VI. The period of validity of quotations for acceptance shall be 7days from the date of
opening.
VII. The successful bidders shall b e issued asale letter by the company specifying the
quantity sold and the firm price applicable for the period of delivery.
VIII. The full price of the material with other levies shall be paid in advances by the
success full bidder by demand draft immediately on information from the
company, after which the consignment not is sent
61
OIL PALM INDIA LIMITED
ITEM EMD
Delivery Advice:
It contains all the information about the item, quantity and price at the item sold. It will also
specify who and how will arrange the tankers, barrels etc which are necessary for the
transportation.
62
OIL PALM INDIA LIMITED
ESTATES
The department is headed by a senior manager (estates) who is assisted by
two managers, three assistant managersa (estates), two assistant manager (finance and accounts),
two labour welfare officers, ministerial staff and field staff and field staff or workers.The
company has got a total planted area of 3646 hectare of plantation spread over in three estates
viz. Yeroor, Chithara and Kulathupuzha in Kollam distict. The raw materials, Fresh Fruit
Bunches (FFB), for the production of Palm Oil are cultivated in these three estates.
Senior
Manager
(Estates)
Manager
Manager
Watcher, Watcher,
Watcher Ayah Ayah
,Ayah
Workers Workers
Workers
63
OIL PALM INDIA LIMITED
MEDICAL DEPARTMENT
Medical department takes care of the health and hygiene of the workers of the organization.
Senior medical officer is the department and he is assisted by a lady medical officer and
hospital staff.
Functions
Medical department priding medical care to employees and their dependents.
Look after the work accident cases and other patients.
This department have the ambulance facility. It necessary the accident or injured
workers may be send to other hosiptals for better medical treatment .
Reimbursement of medical expense bill to the employees.
Conducting medical camps etc.
Senior
Medical
Officer
Lady
Medical
Officer
Pharmacist Nurse
Hospital Attendant
64
OIL PALM INDIA LIMITED
Maintenance Department
Nature of maintenance
1) Routine Maintenance
2) Preventive Maintenance
3) Annual shut down Maintenance
4) Statutory Maintenance
5) Break down Maintenance
65
OIL PALM INDIA LIMITED
SWOT ANALYSIS
66
OIL PALM INDIA LIMITED
SWOT ANALYSIS
S TRENGTH
W EAKNESS
67
OIL PALM INDIA LIMITED
O PPORTUNITIES
T
HREAT
Price of fluctuation
Pressure by Malaysia and Indonesia to lift the import barriers
Globalization
No marketing strategies
Government policy
World Trade Organization Agreement
Low tariff rate for import of substitute palm oil
68
OIL PALM INDIA LIMITED
69
OIL PALM INDIA LIMITED
From the analysis of the data collected from the company it is understood that :
Specific findings:
Insufficiency of land for cultivation
Deficiency of online business
Lack of adequate infrastructure facilities like building, road etc
Shortage of sufficient man power
No worker’s participation in managerial decision making
Fluctuations in oil price
R&D
Delay in computerizing the company
As there are fewer chances of promotions, employee motivation is very
No standard for quality, like ISO, is implemented
70
OIL PALM INDIA LIMITED
Oil Palm is a seasonal product, thus leading to low plant utilization from August January
Deficiency of online business
SUGGESTIONS
Welfare measures should be improved to motivate the workers.
Adequate transportation facility should be provided.
The company can be complete revamp its existing advertising and other product
Promotional strategies so that they become readily aggressive.
More marketing strategies to be established.
Effective use of management information can reduce complex procedure.
International standards should be used to maintain the quality of the product
The control measures using old techniques to know about purity of fruits and also crude
oil.
Proper guidance should be given to the workers to improve there efficiency.
The company has to make awareness of the schemes and plans to the employees
properly before its implementation.
Proper training and counseling should be given to the employees who opted for VRS.
The schemes should be implemented in its right spirit and gracefully.
OPIL should have notice the chances in foreign market and take steps accordingly.
71
OIL PALM INDIA LIMITED
CONCLUSION
The study is to acquire the pratical aspects of Business and commerce. And also to
understand how an organization maintains overall balances, the day today activities are
observed and it helps the all purposes.
Financial position of the company is good. Employees are enthusiastic and hardworking
about their work and efficient management. The present scenario of Kerala industrial
situation is obtained from the study.
The study reveals the application management principles in OPIL and the experience at OIL
PALM provides a chance to analyse the difference of management theory and practice..
72
OIL PALM INDIA LIMITED
Bibliography
Textual References
R. H. V. Corley and C. H. Lee, Euphytica Journal, Volume 60, Number 3, Pages 179-184, April 1992,
doi:10.1007/BF00039396
Kotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2010). "Marketing defined". Principles of
marketing (5th ed.). p. 7.
http://books.google.com/books?id=6T2R0_ESU5AC&lpg=PP1&pg=PA7#v=onepage&q=&f=true. Retrieved
2009-10-23.
Paul H. Selden (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI. p. 23.
Characteristics of red palm oil, a carotene- and vitamin E–rich refined oil for food uses B. Nagendran, U. R.
Unnithan, Y. M. Choo, and Kalyana Sundram, Food and Nutrition Bulletin, vol. 21, no. 2, 2000, pg 77-82,
The United Nations University
Web Resources
http://www.oilpalmindia.com/products.php
http://www.oilpalmindia.com/estate.php
http://www.oilpalmindia.com/opdp.php
http://www.oilpalmindia.com/seed_garden.php
http://www.oilpalmindia.com/right_to_information.php
73
OIL PALM INDIA LIMITED
Annexures –I
Profit & loss account of Oil Palm India Ltd for the year ended 31st
March 2011
74
OIL PALM INDIA LIMITED
75
OIL PALM INDIA LIMITED
Grossblock: 335412532.66
Less: Depreciation: 226341346.89
Net block 109071185.77 115803115.59
Development of property 75761886.31 69102157.07
Capital work-in-progress 78920614.83 2477439.03
Investments 10000000.00 10000000.00
Deferred tax asset (NET) 31789447.00 25984980.00
Current assets, loans & advances
Inventories 37014323.40 32112022.97
Sundry debtors 149817.00 634515.00
Cash & bank balance 419570121.22 416702364.36
Loans & Advances 252029123.06 200599603.52
Total 708763384.68 650048505.85
Less:current liabilities & provisions
Current liabilities 95990346.19 42271100.24
Provisions 281064692.00 226314435.00
Total 377055038.19 268585535.24
Net current assets 331708346.49 381462970.61
TOTAL 637251480.40 604830662.30
Significant Accounting Policies
Notes Forming Parts of Accounts
76