ORGANISATIONAL STUDY ON PAVIZHAM HEALTHIER DIET PVT. LTD

Submitted to

Cochin University of Science and Technology

in partial fulfilment of the requirements for the award of the

Degree of Master of Business Administration

BY

MUHAMMED ALI JOUHAR

Under the supervision of

Dr. Renjini D.

School of Management Studies

SCHOOL OF MANAGEMENT STUDIES

COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY

COCHIN-682022, KERALA.

JULY 2015

TABLE OF CONTENTS

Chapter

No:

Title Page No:

One Introduction

Introduction to the study 2

Scope of the study 3

Objectives of the study 3

Methodology 3

Limitations of the study 4

Two Analysis Of Business Environment

Analysis of remote external environment 6

Industry Profile 8

Industry Analysis 12

Competitor Analysis 15

Three Organizational Analysis

Overview of the Organization 18

Organization Structure 25

Functional Analysis 27

Organizational Analysis 53

Four Observation And Conclusion

Observations and Suggestions 57

Conclusions 59

BIBLIOGRAPHY 60

LIST OF TABLES AND FIGURES

Tables Page No

Table 1

Table 2

Competitor Analysis

Performance Business

15

23

Figures Page No

Figure 1 Porters Five Force analysis 12

Figure 2 Corporate Structure 26

Figure 3 Marketing Department Structure 28

Figure 4 Marketing Distribution Channel 30

Figure 5 Human Resource Department Structure 31

Figure 6 Finance Department Structure 35

Figure 7 Production Department Structure 37

Figure 8 Production Process Of Rice 39

Figure 9 Purchase Department Structure 47

Figure 10 Storage Department Structure 48

Figure 11 Logistics Department Structure 51

Figure 12 Quality Control Department Structure 52

CHAPTER- 1

INTRODUCTION

2

INTRODUCTION

Introduction to the Study

An organization is the act of forming or establishing something, it’s a group of people

who form a business, club etc together in order to achieve a particular aim. The

organizational study is the examination of how individuals construct organizational

structures, processes, and practices and how these in turn, shape social relations and

create institutions that ultimately influence people

Paddy cultivation was part of the proud culture of Kerala State.Rice is the most important

cereal and staple food produced and consumed in Kerala.The study was conducted at

Pavizham Healthier Diet Pvt. Ltd.Pavizham is the generic name of rice & rice products

produced by 14 individual industries located in about 50 Acres at Aimury in Koovappady

Village. Various varieties of rice & rice products come out of these factories day in and

out. The marketing arm of these companies is Pavizham Healthier Diet (Pvt) Ltd., Apart

from rice & rice products the company also markets Tamarind,salt,coconut oil, rice bran

oil etc., These units are owned by various members of the Nambiyattukudy family.The

manufacturing unit has the most modern technology in rice milling and has imported the

machinery item China and Japan. The products are mainly marketed in Kerala and other

parts of India. The products are being exported to other countries including Europe,

Africa, Gulf and USA.

The study, done for a period of one month from 1stJune to 15th July 2015, focuses on the

structural and the functional aspects of Pavizham Healthier Diet (Pvt) Ltd., its product

profile, markets and the major competitors in their fields of business activities. The

industry and the environment of the firm is analyzed in detail and the study attempts to

identify the strengths and weaknesses of the firm while exploring its possible

opportunities and threats. Information and data collection for the study was mainly

through the interactions, interviews and discussions with the management, the employees.

Secondary data relevant to the study was also collected through departmental manuals,

Standard operating procedures ( SOPs) and from the reliable websites.

3

Scope of Study

The study is focused on the manufacturing facility Koovappady unit of Pavizham

Healthier Diet Pvt. Ltd.. The structural aspects, functional aspects of all the departments

like the Finance, Human Resource, Marketing, the inter and intra departmental activities

are covered in this study. Financial data which is kept confidential by the company hence

detailed financial analysis is not done.

This report is mainly on the organization practices adopted in Pavizham Healthier Diet

Pvt. Ltd and to its strength, weakness understand the current practices and make

suggestions for its improvement. It also covers, opportunities and threats in the

organization. The theoretical scope of the study was aimed at covering the functional

departments of the organization.

Objectives of the study

The major objectives of this organizational study conducted at Pavizham Healthier Diet

Pvt. Ltd. are as follows

1. To understand Pavizham Healthier Diet Pvt. Ltd. as a business entity, its background

and its history.

2. To understand the hierarchy of the organization

3. To familiarize oneself with the various departments of the organization.

4. To analyse the organization objectively yet holistically with regard to its strengths,

weaknesses, opportunities and threats.

5. To analyse the present situation of the company and relations between the employers

and employees.

6. To make an evaluation of the overall performance of the firm

7. To get an organizational exposure

Methodology

Sources of Data

There are mainly two types of data used in this organization study such as Primary data

and Secondary data.

4

Primary Data : The study is on the organization as a business entity and descriptive in

nature. Information and data collection was mainly done through one to one interactions

with the members of the management team, employees. Both formal and informal

methods have helped in the better understanding of the nuances of the business. The study

was done in a systematic manner following a predefined schedule wherein all the

departments were covered one by one. For the interaction with the key personnel and top

management, appointments were fixed and formal interviews were taken

Secondary Data: Secondary data sources like the Departmental manuals, Standard

Operating procedures ( SOPs), Quality Manual, Advertisement materials of the firm were

extensively used in the study. Material data from company website and other websites

hosted by reputed organizations were also used for this study.

Limitations of the Study

Certain limitations faced during the period of study were time available for the project

work was limited,. The confidential nature of certain documents, especially the financial

data or the strategically important information has too prevented this study from

achieving the level of perfection it had aimed at initially. Busy schedules of the

supervisors, employee had made them unavailable for interactions during the study

which could have really made the study more complete and valuable.

CHAPTER-2

ANALYSIS OF BUSINESS

ENVIRONMENT

6

ANALYSIS OF THE BUSINESS ENVIRONMENT

Analysis Of The Remote External Environment

No organization can stand alone in this modern era. Many factors from the external

environment could affect an organization. PESTEL analysis is a part of external analysis

when conducting a strategic analysis of doing market research and gives a certain

overview of the different macro environmental factors of the company has to take into

consideration.

PESTEL analysis stands for “Political, Economic, Social, Technological, Environmental

and Legal” Analysis.

Political Factors :-Government in Kerala had been uncomfortable with external trade

and keen to promote internal self-sufficiency. They had developed a number of

initiatives to bolster rice production, introducing subsidies and legislation to reduce the

trade of cash-crops outside the region. The conversion of paddy fields for other uses was

made illegal, even though many farmers had been finding rice growing increasingly

unprofitable and were keen to move to new crops like rubber. Levels of rice production

had been in steep decline over the previous three decades, but the post-independent

government were keen to put rice at the heart of their agricultural policy - it was seen as

a symbol of their economic autonomy.

Kerala has built a strong set of democratic institutions at the local level, and they have

been a pillar of support for rice farmers in the State.There are two institutions such as

PadasekharaSamitis -the State government initiated a program of group farming for

paddy cultivation and KrishiBhavans – institutions of agricultural assistance run by the

State's Agriculture Department which work under the panchayats –  play a central role in

programs to revive rice-growing in Kerala. KrishiBhavans distribute seeds and

fertilizers to farmers at subsidized rates throughPadasekharaSamitis. Many rice

manufacturing firms have trade unions. The major trade unions includes INTUC and

CITU.

Economic Factors :-In the present scenario it is difficult to do rice cultivation in the state

due to high labor cost and shortage of labor mechanized transplanting is attracting more

and more paddy farmers in Kerala. There has been an unprecedented hike in the price of

rice over Kerala for the last three years. Price of rice in the open market reached Rs.27-36

7

per kg in 2013.The price of fertilizers are also making paddy cultivation difficult in

Kerala.By adopting good quality seedlings, adequate use of organic manure, integrated

water and pest management Kerala farmers can increase rice yield and thereby profit

from it.Family dynamics, rising income, increasing exposure to various mass media,

changing food habits with preference for fast foods are reducing the demand for rice.

Minimum support prices announced by the government greatly influence the rate at which

farmers are able to sell their crop. While the Central Government announces MSP for

various crops, State governments can decide to procure a crop at a price higher than that

announced by the Central Government.

Social Factors :-Rice is the staple food of the people of Kerala, and, traditionally, the

cultivation of rice has occupied pride of place in the agrarian economy of the State.

Social factors are one of the key factors affecting a business. Demand of product is

determined by the consumption pattern which is largely influenced by the social factors.

To feed a population of 3.2 crores, Kerala has to produce approximately 38- 40 lakh

tones of food grains every year at the minimum per capita food availability of 320 g ,

while the actual production is only around 6 lakh tones, less than 1/6th of the

requirement. In other words, 84 % of the food grain required for Kerala comes from

neighboring states. Due to high production cost and labor charges farmers are moving

from paddy cultivation to other profitable crops.

Technological Factors:-Technology contributed highly in the development of rice

industry. Now a days bullock drawn and hand operated implements are replaced by

machines like rice planters, tractors and paddy harvest machine. Replacement of low

potential/pest susceptible old varieties are happening by new high yielding varieties with

promising yield potential. Also encouraging cultivation of hybrid rice through

demonstrations and making seed available to the farmers. Innovations are happening in

Bio- Fertilizers and pest management. Genetically modified seeds are available now.

Environmental Factors:-Paddy fields are a vital part of Kerala's environment and

ecological systems. They provide natural drainage paths for flood waters, conserve

ground water, and are crucial for the preservation of a rich variety of flora and fauna. In

several regions of Kerala, paddy cultivation is carried out in a manner that enriches the

specific geographical and ecological features of these regions. For instance,

8

in kaipad fields in Kattampally in Kannur district, paddy has been traditionally cultivated

in fields filled with saline water. In pokkali fields in the Kochi area, farmers alternate the

cultivation of prawn with paddy cultivation. Other such examples include kole fields in

Thrissur and Ponnani, as well as paddy fields in Meppayar in Kozhikode and Kabani in

Wayanad. The conversion of paddy fields for other uses was made illegal.

Legal Factors:-Legal system for business in India is very flexible. The Department

of Agriculture in Kerala deals with the formulation and implementation of various

programs to augment production of both food crops and cash crops in the State.

Industry Profile

Overview of the Industry. Rice mill industry is flourishing day by day since rice

is an unavoidable commodity for our day-to day life. Kerala is consumer state. We have

depends on other states in order to get paddy. The rice industries are mainly concentrated

at Kalady. There are around 100 rice mills at Kalady alone.

Food processing demands are an industry with quick returns, whose gestation period is

much less than that of other industries. This is also the reason why a large number of NRI

investors have shown keen interest in food processing. In the past seven past years, since

food processing became the new wave industry, many foreign giants have decided to

enter this segment in the Indian market. The changing life style of the people, the increase

in the urban population, the rise in the literacy level and the enlarged T.V coverage has

triggered greater scope for the food processing industry. There is a strong economic

justification for setting up food industry, from the view point of farmers and consumers,

employment generation and industrialization. It should however be admitted, the food

processing industry in India is still in its infancy. Institutional demand, the requirement of

hotels and household consumption comprise the domestic demand for the processed food

industry. The two characteristics governing consumption of processed food in the

household sector are the change of habits and standard of living of people.

As the structure of the industry, it is noticed that small and big coexist in the industry in

India. The food processing industry covers the entire range from wheat flour, rice milling,

9

oil extraction, sugar etc., to the latest of the ‘ready to eat’ kind of tinned and preserved

foods.

The products need to be manufactured and marketed appropriately in order to tap the

domestic and export potentials of rice, wheal, and cereal products, sugar preservations,

confectionery, dairy products, fruits, vegetables, fish, meat, poultry, ice creams, tea and

coffee

According to the confederation of Indian food tread and industry, the food processing

industry is the largest determinant of GPD, accounting for 19% of the total industry

production and employing around 18% of the national labor force.

The industry has being facing a number of constraints, unreliable database for availability

of raw materials, infrastructural limitation, limited research and development support,

difficulties in technology transfer and absorption, inadequate incentives, problems

relating to quality control, implementation of the prevention of food adulteration act, high

cost of product development and promotion, taxation policies that continue to treat this

industry as catering to the elite sections and problems relating to packing.

The policy measures, which the government has sought, are meant to remove those

constraints. It has provided a single window for the industry, which hither to have to deal

with five departments.

The government of India encourages the food processing industry motivated by following

objectives

To input to use the enormous amount of vegetables, fruits and grains, which were

otherwise, go waste for lack of social sales and storage facilities

To generate rural employment.To bring about a change in the eating habits of

the people, by making them more accustomed to fast and processed foods.

The prospectus for the food processing industry has been bright with growth of

international tourism, change in the consumption pattern in Metropolitan Centers and

enormous export potential.

Global Scenario.Rice cultivation is the principal activity and source of income

for millions of households around the globe and several countries of Asia and Africa are

highly depended on rice as a source of foreign exchange earnings and government

revenue. Rice is the second largest produced cereal in the world. At the beginning of the

10

1990’s annual production was around 350 million tons and by the end of the century it

had reached 410 million tons. Production is geographically concentrated in Western and

Eastern Asia. Asia is the biggest large producer, accounting for 90% of the world

production and consumption of rice. China and India which account for more than one

third of global population supply over half of the world’s rice.

The majority of all rice produced comes from India, China, Japan, Indonesia, Thailand

and Bangladesh. Asian farmers still account for 92% of the world’s total rice production.

More than 550 million tons of rice is produced annually around the globe. In the United

States farmers have been successfully harvested rice for more than 300 years. There are

thousands of strains of rice today including those grown in the wild and those which are

cultivated as a crop.

At least 114 countries grow rice and more than 50 have an annual production of 1,

00,000 tons or more. Asian farmers produce about 90% of the total with two countries,

China and India, growing more than half the total crop. For most rice producing

countries where annual production exceeds 1 million tons rice is the staple food. In

Bangladesh Cambodia, Indonesia, Thailand and Vietnam rice provides 50-80% of the

total calories consumed.

World Top 10 Rice Production Countries

China.

India.

Indonesia.

Bangladesh.

Vietnam.

Thailand.

Japan.

Brazil.

Myanmar

Bolivia

Indian Scenario .Rice is grown in many regions across India. For about 65% of

the people living in India, rice is a staple food for them. Rice is essential to life in India. It

11

is a part of nearly every meal, and it is grown on a majority of the rural farms.Some

important facts about rice in Indian scenario are as:

India is the 2nd leading producer of rice in the entire world, preceded only by

China.

Indian annual rice production is around 85-90 million tons. Annual consumption

is around 85 million tons.

In India rice is cultivated in both seasons– winter and summer.

India is the world’s largest exporter of Basmati rice to Saudi Arabia and other

Middle East countries, Europe, and the United States.

India has the potential to export one million tons of Basmati rice.

West Bengal, Uttar Pradesh, Punjab, Tamil Nadu, Bihar, Orissa, Assam,

Karnataka and Haryana are the major rice producing states. More than 50% of the

production comes from the first four states.

State Scenario.Paddy is cultivated in almost all districts in Kerala .Paddy

cultivation was part of the proud culture of Kerala state. Rice is the most important

cereal and staple food produced and consumed in Kerala. In Kerala you can see vast

green paddy fields. Kuttanad is called as rice bowl of Kerala because of rice cultivation.

Trichur and Palakkad are the other two places in Kerala where large scale cultivation is

done.

The production of rice is declining every year. This is an indication of the problems

faced by the cultivation of Kerala. If proper measures are not being taken to overcome

this situation, then this sector will be abolished from the state within the no time. The

main problem concerning these cultivation are high cost of cultivation and less return

for their products, the products from other states is also affecting them adversely.In the

earlier days rice used to be cultivated almost in all parts of Kerala in three seasons. They

were Mundakan, Virippu and Puncha.

In the present scenario it is difficult to do rice cultivation in the state due to high labour

cost and shortage of labour mechanized transplanting is attracting more and more paddy

farmers in Kerala. Also paddy fields are being converted into filled up land.

There has been an unprecedented hike in the price of rice over Kerala for the last three

years. Price of rice in the open market reached Rs.27-36per kg in 2013.

12

Industry Analysis

Porters Five Force Analysis

Figure 1Porters Five Force analysisSource: Michael Porter, Competitive Strategy, 1980, Adapted from www.notesdesk.org/encyclopedia

Bargaining Power of Buyers .Rice is unavoidable in Kerala menu the bargaining

powers buyers are less. Almost all keralites are depending upon rice or rice products for

their food consumption. There are large number of buyers in the market. There are

different varieties of rice and more than 25 brands are available in kerala, so the switching

power of buyers are high. The cost of different branded rice are similar, the switching

cost is less. There are no discounts or offers so the profitmargin of buyers are the same.

The company is giving importance to maintain the relationship with customers

by providing products according to their needs and necessary technical assistance.

Bargaining Power Of Suppliers .As kerala depending upon Andra and other

states for our rice requirements the suppliers plays major role in determining the price of

rice. The suppliers are mixing low quality and high quality rice together. The suppliers

13

are collecting rice from the farmers directly for cheaper price. The bargaining power of

suppliers are high.

Threat of New Entrants .Pavizham is a well established brand,as the cost for

setting up new plant is high, there are less number of new entrants. Because of all other

brands are well established. It will take huge time for new entrants to establish

themselves in the market. There is no restriction for new entrants from government

side.Ensuring market penetration through better distribution while remaining economical

poses another challenge for players who want to enhance their market presence and foray

into new market segments like low income group settlements. Inflation in the prices of

raw materials is another big stumbling block which is limiting not only any increase in

product prices but is also squeezing profit margins. These are the two things that prevent

the new entrants from coming to the industry.

Threat Of Substitute Products .As the rice price are soaring high people are

switching to other products like wheat or wheat products and oats. As people are aware

of carbohydrate rich food which is the main cause for obesity now they are switching to

protein rich food. Substitution of rice with another product is relatively high.

Competition/ Rivalry .The number of competitors are high. There are more than

30 companies are existing in kerala. Industry is growing rapidly as the population rate is

increasing. There are few major players like Nirapara, Mothers Rice, Periyar and these

are major threats to Pavizham.These companies are also providing rice related products.

Sometimes rivals compete aggressively and sometimes rivals compete in non- price

dimensions such as innovation, marketing, etc.

Industry Key Players.The following firms are some of the key players in the industry

Nirapara .Coupled with a social responsibility together with a heartfelt desire to

bring tasty and healthy rice to the traditional Kerala home, the visionary Shri. K.K.R

Karnan established K.K.R Mills in 1976 which has since transformed into the Nirapara

Brand, a name synonymous with quality food for millions of consumers around the

world.

After establishing its name in rice, the company has diversified its areas of business and

employs state-of –the-art technology in various other fields and introduced a wide range

of food products into the market under the “Nirapara” brand umbrella. The brand offers

14

numerous products other than rice from whole spices to masala powders, vegetables to

pickles which are nutritionally rich and full of Nature’s goodness.

The other prestigious divisions of KKR group include Vydyaa Ayurveda and herbals, Bik

Herbals & Extractions, Succor Health Care, Solace Research Pvt Ltd, Bikaura Power

Solutions Pvt Ltd, K.K.R Petroleum Products, Five Star Metals Pvt. Ltd, KKB Fencing

Company LLC, Dubai.

Periyar .It was more than three decades ago. The Chirackal family introduced in

Kerala, the idea of packed rice. The Chirackal modern rice mill was started in 1991. The

unit started manufacturing rice and the brand was called “PERIYAR”, going after the

great river Periyar on the banks of which the company stood.

The second unit of the Chirackal Agro Mills was started in 1998. The machineries for this

unit were imported from Japan and the same could completely remove the unwanted

black rice. The products of PERIYAR RICE saw huge acceptance among the general

public mainly because of the superior quality. This was achieved due to the very stringent

quality control measures that were introduced in the units right from inception. PERIYAR

is now a household name in India and many Middle East countries.

The company has today expanded its activities into the instant mixes and pickles fields.

The immediate acceptance of the PERIYAR brands has given the promoters a chance to

have more dreams for the future.

Mothers Rice .M/s. Veejay Modern Rice Mill is a small scale industry registered

with the directorate of industries and commerce government of Kerala.Thecompany was

established in the year 1996 for production of paraboiled milled rice.The company has

established itself as a leading par boiled milled rice producer and its products are

marketed in several parts of the country. The company also exports its products to

countries like , Kuwait & Saudi Arabia.The company has an experienced team of

employees who manage the various activities.

The process capacity of the plant is 100 tones paddy per day. Nowadays company

decided to move to new era by modernizing the factory by sortex machine. So company is

able to provide fine quality rice as this machine removes husk, black rice and other

elements from the rice. halls, supermarkets, office buildings, car parking sheds, and

virtually any one, two or three storey building.

15

Competitor Analysis

Table 1Competitor Analysis

Company Nirapara Periyar Mothers Rice

Years OF Experience Established in 1976

and hence over

38years’ experience

with a better brand

value.

Established in 1991

and has nearly 23

years’ experience.

Established in

1996 and hence

only 18years’

experience.

Certification 1SO 9001-2008

certified

ISO 9001-2000

certified

ISO 9001-2000

certified

Production Capacity 750 Tones/

Day

450 Tones/

Day

200 Tones/

Day

Market Share 35% of the total

market share

15% of the total

market share

10% of the total

market share

Products

manufactured

Rice, Rice Products,

Wheat Products,

Sweet Dishes

Rice, Rice Products,

Wheat Products,

Sweet Dishes,Pickles

Rice

CHAPTER 3

ORGANIZATIONAL ANALYSIS

18

ORGANIZATIONAL ANALYSIS

Overview Of The Organization

Background And History. Pavizham Healthier Diet Pvt Ltd. leading rice

manufacturer quality assured branded rice “ PAVIZHAM “ market in Kerala and abroad

by using the modern technology. They are being treated as the provider of rice, the

traditional taste of Kerala due to its superior quality and affordable price. They are

enormously receiving whole hearted supported from the domestic as well as foreign

market irrespective of their income capacity, place of birth, barriers of language, etc. this

contain the company profile , product description and marketing strategy. The orders can

be placed directly from the factory site or through telephone and email as well.

Pavizham is the generic name of the rice & rice products produced by 14

individual industries located in about 50 acres at Aimury in Koovappady village.

Various varieties of rice & rice products come out of their factories day in and out. The

marketing arm of these companies is Pavizham Healthier DietPvt Ltd. Apart from rice &

rice products the company also market Tamarind, salt, coconut, oil, rice bran oil etc.

These units are owned by various members Nambiyattukkudy family and the current

patriarch Mr. NP George, referred as Chairman and his brother NP Antony as Managing

Director. Their father late Mr. Pappachan entered into conventional rice milling is early

eighties, and before could witness the modern rice mill he had established he departed to

heaven. The brothers thereafter jointly along with their mother and other members of

families built up the rice milling empire as the people see now, innovating ideas,

uncompromising stand on quality, a humanistic approach based on Christian values has

over the years seen the various units flourishing and prospering. Modern milling

machinery imported from China, a cogen power plant, a waste water treatment plant

based on CSIR technology makes the mills unique. Company is a pioneer in various

value addition opinions for rice & it’s by products.

Pavizham is being, treated as the provider of the traditional taste of Kerala due to its

superior quality and affordable price. High nutritional value sortex rice and rice products

are being manufacturing using high and technology to meet our customers’ needs.

The rice & rice products of the company reaches the malayalees not only in their home

state, but wherever they are be it in US, Europe or Africa. The marketing network of the

19

company is celebrate as it service over 3000 retailers spread all over the state through its

own vehicle fleet and a declare network to motor like Bombay & Delhi.

Policy Of The Organization

Quality Policy :-Quality policy is to manufacture and market the best quality rice

product. This will be achieved by implementing ISO 9001. Quality management system

providing training to all personnel to improve quality as a continual basis for maximizes

customer satisfaction.

HRDPolicy:-To attract and retain competent personnel by providing a productive and

congenial environment, opportunity for growth and compensation comparable with

industry practice.

To build and nature work culture that focus on work entices and commitment to

productivity, cost consciousness and commercial orientation, team work and dedication

and to take pride in the company.

To provide welfare facilities and amenities that will ensure the highest standards of

quality of life both at workplace and outside. To provide opportunities for competence

development on continuous basis by various HRD invention such as in house and

external training programmes.

Environmental Policy:-This organization follows the philosophy of maintaining

harmonious relationship with the environment by adopting suitable technology in

different areas of operation.

To guide the management, we, at Pavizham group, commit ourselves to operate all

plants based on goods process control system with continuous improvements through

review of the objectives and targets and also to conserve natural resource and energy.

Minimize waste and prevent pollution. Promote safely at workplace for all employees

and promote good housekeeping. Be an environmentally responsible neighbor to the

community. Comply with relevant statutory and legal requirements.

Health & Safety Policy :-This organization is committed as far as practical to provide.

A safe healthy and accident free working environment by adhering to safety rules and

20

regulations.All possible preventive steps, precautions and protective measures against

any anticipated hazards.

All safety measure in the operating and maintenance proceeding and all process

technology changes.

Products

1. Long Grain Matta Rice ( Vedi ) . This product is known as “Vadiyari” in Malayalam.

As the name indicates, the product is long and with rosecolour and is very much liked by

the Malayalies. This rice contains more vitamins and more starch. The cooking of this

variety of rice will take more time and is very tasty.

The cooking time can be reduced by suitable processing the paddy during boiling. This

rice is manufactured out of paddy cultivated mainly in Palakkad district. The product is

prepared according to the specification of each customer. This rice also used for

marketing PAYASAM and also used for marketing PRASADOM in temples.

2.Small Grain Matta Rice ( Unda ) . This product is known as “Undayari” in

Malayalam. As indicates by the name, the products is short with rose colour but thick

when compared to the former variety and is also very much liked by the Malayalees.

This rice also contain more vitamins and more starch similar to the previous variety. The

cooking of this rice will take lesser time compared to the former one. The cooking time

can be still reduced by suitable processing the paddy during boiling. This rice is

manufactured out of paddy cultivated mainly in Kuttanad areas. The product is prepared

according to the specification of each customer. This has got a white belly and is

preferred by households.

3.Long Grain White Rice ( Jaya ) . This product is known as “Jayayari” in Malayalam.

This product is long and with similar to the first variety of rice but is having a white

colour. Unlike the first two varieties, this product contains jess vitamins and less starch

when compared to the previous varieties. The cooking of this will take less time and very

soft. For this reason, it is easy for human consumption and easily digested. The

cooking time can be either increased or reduced by suitable processing the paddy during

boiling. The product is prepared according to the specification of each customer. This

rice is manufactured out of paddy cultivated mainly in state Karnataka and Tamilnadu.

21

4.Small Grain White Rice ( Kranthi ) . This product is known as “Krantiyari” in

Malayalam. This product is similar to the small Matta rice ( Unayari ) with the only

differentiation in colour. This is white in colour similar to the Jaya rice. This variety of

rice is available throughout the entire country. The paddy required for the production of

this rice is cultivated in almost all the state.

This can be cooked very fast and is very late and soft for the stomach. For this reason, it

is easy for human consumption and easily digested. The cooking time can be either

increased or reduced by suitable processing the paddy during boiling.The product is

prepared according to the specification of each customer.

5.Beaten Rice or Rice Flakes .This product is known as “Avil” in Malayalam. The patty

soaked in hot water and is roasted using steam and when it is sufficiently roasted, the

roasted paddy is taken to the rice machine to make the product. The product is roasted

once again to increase the life and also to make better in taste. This are packed in plastic

bags and are sealed to maintain the quality of the product until it is consumed. The

product has become very dearer within a short span of time. The product is prepares to

according to the specification of each customer.

6.Rice Powder .This product is known as “Avil” in Malayalam. The rice is soaked in

water and is powered using the pulverizer machine. The powdered product is graded

according to the fitness and used for making different dishes like Appam, Idly, Dosai,

Puttu, etc. The rice powder is roasted to preserve it for longer period. When it is

sufficiently roasted, it is allowed to cool. These are packed in plastic bags and are sealed

to maintain the quality of products unit it is consumer. The product has become very

dearer within a short span of time. The recipes of each product are painted on the plastic

bags in order to help the user to cook the different dishes very fast.

7.Puttupodi .Makes soft, easy Puttu, one of the best breakfasts in the world. It is a great

healthy food rich in natural nutrients, steam cooked and oil free. The appetizing aroma of

the delicious, natural taste of the rice that wafts through the hot steaming puttu is sheer

delight. Tastes heavenly when complemented with curry, pappads or bananas.

8.ChampaPuttuPodi.Powdered brown rice to make soft and tasty “ChampaPuttu” with a

temptingly delicious aroma, flavour and colour. Rice in natural nutrients, vitamins and

fibre, this steam cooked, oil free delicacy is the sheer goodness of natural taste

22

complemented with healthy nourishment. Savourit with curry, pappads or bananas. It’s

definitely something to feast on.

9.Appam, Pathiri, IdiyappamPodi .Made with the quality rice, it is the delicious natural

goodness and taste makes it perfect for tasty pathiristhatmelt in your mouth, delicious

Appam that are temptingly appetizing and yummy. Idiyappams that are simple

irresistible to devour. Simply to prepare, rich in nourishments and oil free, it is

absolutely healthy too.

10.PalappamPodi .Makes mouth – watering palappam prepared with milk to complete

the succulence of soft centredpalappam, laced with crispy edges. Relish the delicacy

with curry or sweetened coconut milk. Rich in taste and natural nourishment, it’s simply

a treat for your taste buds.

11.Idlipodi .Makes soft, delicious Idlis.A traditional favourite that divinely delicious, the

enticing aroma and the melt-in-mouth succulence of hot steaming Idlits are pure delight.

Relish the heavenly nature taste by complementing with chutneys and hot spicy sambar.

12.Roast Aval .The paddy soaked in hot water and is roasted using steam and when it is

sufficiently roasted, the roasted paddy is taken to the rice machine to make the products.

The product is roasted once again to increase life and also to make it better in taste. The

product has become very dearer within a short span of time.

13.Palada .This product is processed adopting traditional formula, through automatic

equipment. They are dried as a complete protein rich fat free food. Ingredients fine

quality rice only. This is sufficient to make 25 cups tasty payasam.

14.Rice Bran Oil .Pavizham rice bran is a rice grain derivative popularly acclaimed as

the “heart oil”. It is total healthy, nutritive oil as comprise a unique and optimum

combination of mono saturated, poly saturated fatty acids that are potent cholesterol

reducers, which prevents heart diseases and the powerful antioxidants, regulates the body

metabolism, turning down the ageing process.

23

Business Performance

The Comparative financial statementofthe company is given in the table below.

Particulars 2012-2013 2011-2012 Increase/decrease Percentage increase/decrease

1.equity and liabilitiesShareholders’ funds

a. capitalb. reserve &surplus

15000006119791

15000003110243 3009548 96.76

Non-current liabilities

Long term borrowings

1040800 2850001 -1809201 -63.48

Current liabilities

a. short term borrowings.b. trade payablesc. other current liabilitiesd. short term provisions

1307699710333009

538360200

129060736963009

96716673014

1709243370000

528688667301

1.3248.39

98.20-100.0

Total 37455201 28099057 9356144 33.29II. AssetsNet current assets

a. Fixed assets.b. Deferred tax liabilities.c. Long term loans and advances.

6688121

1113190

64216

7775148

1059960

17816

-1087027

53230

46400

-13.98

5.02

260.44Current Assetsa. Inventories.b. Sundry debtorsc. Cash and bank balancesd. Short-term loans and advancese.Other current assets

191318506072003

489324

38947531743

167044072371182

164066

647700

24274433700821

325258

38882761743

14.53156.07

198.25

99.8300

Total 37455201 28099057 9356144 33.29 Source :Pavizham healthier Diet Pvt (Ltd) ‘s Account Books

Comparative balance sheet for the year 2011-12 and 2012-13 shows a satisfactory result.

There was an increase of 96% in reserve and surplus. There was a noticeable increase in

24

debtor’s portion. The collection policy of the company in the year 2011-12 was not

good.198% increase in the cash in hand is not favorable to the company.

Objectives of the Company

The main objective of Pavizham Healthier Diet Pvt Ltd is to provide more quality

products for reasonable price. It will help to promote sales. For maintaining employees it

is important to provide better wages, better working conditions, maintain good employer

employee relationship etc. Another main objective of the company is to make their

products to reach the interior parts of the Kerala and to make direct marketing to the retail

shops.

To delight customers by providing quality products.

To establish a reputation in the minds of customer.

To solve all the customer complaints in a fast and favourable manner.

To improve productivity by reducing wastage.

Recognition and Certification :

Certificates of Quality System assessment in May 2002.

Safety Award from National Safety Council of India in 2004.

ISO 9001-2000 certification

Award of best unit KhadiUtsav in 2003.

Best Entrepreneur Award from Department of industries and commerce from

Government of Kerala in 2004.

Best Productivity Performance Award in 2006-2007.

Drisya Business Excellence Award in 2008.

25

Organization Structure

Organization structure is the pattern in which various parts of components are interrelated

or interconnected. Thus organization structure is the established pattern of relationship

among components or parts of the organization. This prescribes among various position

and activities. The organization structure contributes to the continuity of the enterprise.

Pavizham Healthier Diet Pvt Ltd. follows the functional organization structure. In

functional organization, it occupies a midway position in the line organization. It is mean

of putting the specialist in top position throughout the enterprise. It confers upon the

holder of a functional position limited power of command over the people of various

departments.

A chairman heads the company and Managing Directors manages day to day affairs. They

take all the decision in consultation with the General Manager and other managerial

staffs. They lead the entire company towards attaining the goal and objective of the

company.

Communication Process and Methods .Communication is an essential part

for the success of an organization. There is a very informed and direct communication in

the company. It creates a positive feeling in the mind of the employees. They can use the

extension phones and parallel connection for communication process. They provided

loud speakers in every corner of company for informing the message for the employees.

Communication among for workers is done with the help of circulars, memo, etc. Notice

boards are kept in various departments.

Authority .General Manager and other managerial personnel have authority

in the concern. They can take decision in consultation with their subordinates. Separate

limits have been kept for each one of them. But they cannot take decision, which

involves a financial commitment of over one lakh without the consent of M.D. The

superiors are also having authority to act on matter relating to the subordinates.

Responsibility .Everyone in the organization has his own responsibility. The

duties and responsibilities are given each of the employees upon his appointed. It helps

in deep involvement in the job. Managers head the departments. They are responsible

and accountable for working of their respective departments. They report on the GM.

26

Figure 2Organization Structure

Board of Directors

Managing Directors

Chief Executive Officer

General Manager

Finance Manager Marketing Manager Branch Manager Operation Manager

ProductionManager

Store Manager

Logistic Manager

HumanManager

Project Manager

PurchaseManager

Workers

27

Functional Analysis

A function is a series of related activities, involving one or more entities, performed for

the direct, or indirect, purpose of fulfilling one or more missions or objectives of the firm,

generating revenue for the firm, servicing the customers of the firm, producing the

products and services of the firm, or managing, administering, monitoring, recording, or

reporting on the activities, states, or conditions of the entities of the firm.

A function should be

Identifiable and definable, but may or may not be measurabl

Definable in terms of activity, responsibility, and accountability

A function may

Be a major area of control or a major activity of the firm

Be composed of one or more subfunctions

Be performed in one area or in multiple areas

Be performed by an individual, a group of individuals, groups of individuals,

areas of the firm, or the firm itself

Involve one or more distinct, dependent or independent activities

Be identified and defined without being performed

The registered office in Koovappady where the Pavizham Healthier Diet Pvt Ltd.,

consists of the following departments operating under different heads:-

Accounts and Finance department

Marketing department

Purchase department

Production department

Storage department

Human resource department

Logistics department

Quality control department

Marketing Department .Marketing is considered to be the head of an

organization. It is the most important department in an organization. One of the

28

important reasons behind the success of the company is its marketing strategy compared

to their rivals

Figure 3

Department Structure : Marketing

Note : ASM – Assistant Sales Manager

Marketing manager

Sales manager

ASM. Other Product

ASM. Central ASM. SouthASM. North

Salesman Salesman Salesman

Sales OfficerSales OfficerSales OfficerSales Officer

Salesman

29

Nambiyattukudy group market their product under the brand name ‘PAVIZHAM’ and is

well accepted by the consumers in the market. Now this venture is having

a very strong result oriented and target achieving marketing wing under the direct

supervision of Mr. George and Mr. Antony.

The main areas where the PAVIZHAM product are marketed area at Trivandrum,

Pathanamthitta, Kollam, Alleppey, Kottayam, Idukki, Ernakulam and Kozhikodu district.

Even through PAVIZHAM brand products are marketed in other District in Kerala and

other state like Karnataka and Tamilnadu also it does not reach to the extent as in the

eight district in Kerala mentioned earlier. All the major rice dealers in the above district

are taking rice from Nambiyattukudy group because of the superior quality maintained of

the products throughout the year to the meet the required standard of the consumers. The

proprietary of the unit is now planning to still increasing the quality of the product in

order to attract the best client who deals in rice and rice products.

Analysis of environment

Environment analysis provides an early warning system for the forces which may impact

a company’s products and markets in the future. With helps of environment analysis the

company to act upon rather than react to opportunities and threats.

Market Intelligence & Market Research

Market Intelligence helps to analyzing and acquiring information in order to understand

the market to determine the current and future needs, preference, attitude and behaviour

of the market and to asses changes in the business environment that may affect the size

and nature of the market in e future. It also helps to identify successful new products

development early in the process to create company growth and maximize revenues by

finding a balance between costs and prices of products.

Segmenting, Targeting, Positioning

Company use the market segmentation, that use to company divide the large market into

small markets that can be reached more efficiently and effectively with products and

services that match customers unique needs. With the help of target marketing the

company can achieve higher sales and stronger position.

30

Distribution Strategies

The company moves its products through direct selling and distribution. In the local area,

company provides direct marketing and in other areas the distributor will supply the

products. The distributors collect details regarding the movement, quality opinion,

expectation, etc. from retailer and pass the same concerned department. The company has

several schemes and plans for distributor’s retailers.

Marketing Distribution Channels.

Figure 4

Marketing Distribution Channels.

Pricing strategy

The companies pricing is based on two things such as competition and cost. The

competitive product the company can charge lesser price than its competitors. The other

pricing method is cost based; the products price must cover its cost and also get the profit.

Promotional Activities

The marketing departments organise various promotional activities to increase sales. The

company gives special attention to its promotional activities. The company is spending

more on promotional activities like sales promotion. The promotion activities include

giving incentives to

company sales people, middlemen and their sales force. These activities a value to the

products.

Company Dealers Customers

31

Human Resource Department.It is a very important department in every organization.

In Nambiyattukudy group of companies, a manager heads their department. The

following are main function of this department

Figure 5

Department Structure : Human Resource

Functions

To provide sufficient numbers of required for the company.

To employee capable persons through recruitments.

To give necessary training to the selected persons.

To take necessary steps to resolve grievance of employees.

To ensure employee welfare.

Human Resource planning

Human Resource Planning is the process by which a management determines how an

organization should move from its current manpower position to its desired manpower

position.It helps the Pavizham for anticipating and making provision for the movement of

people into, within, and out of an organization.

Human Resource Manager

Executive Officer

Assistant Officer

Clerk

32

Job analysis

Job analysis is the process of studying and collecting information relating to the

operations and responsibility of a specific job. In Pavizham job analysis defines and

documents the duties, responsibilities and accountabilities of a job and the conditions

under which a job is performed.

Job Description and Specification

Job description is a written record record of the duties, responsibilities and requirements

of a particular job. It tells “what is to be done” and “how it is to be done” in the

organization. Job specification describes what the job demands of employees – who do it

and human factors that are required.

Job design

It is a conscious effort to organize tasks, duties and responsibilities into a unit of work to

achieve a certain objective.

Recruitments

The requirements of employees are done directly by the company through advertisements

in news papers and other media. The company provides chance to existing and employees

to suggest the names of persons for fresh recruitments.

Selection

Interviews are conducted for selecting the right people for the company. Generally the

interview board consists of the MD and respective departmental heads. Tests also

conducted to check the still level of candidates.

Training

Training is a continues process in the industry. They have weekly training, sections for

new comers and other have different aspects on every alternate Saturdays, the company

make use of own managers and every year at least twenty hours of training is given by

extend trainers. Training needs are forced by HRD department and every individual is

trained.

Performance Appraisal

The process by which the organization gets information about how an employee is doing

his/her job. The appraisals are conducted by the head of the department and by the

33

immediate superior. GM and MD of the company scan every one of the appraisal. This

form a basic part for increase of remuneration and promotion.

Health & Safety

Wastes and effluents are disposed properly

Cleanliness is maintained

Proper ventilation and temperature is maintained

Masks are provided for protection against dust.

Cold water facilities are provided in summer and hot in winter

Proper lighting is maintained

Welfare Measures

The company gives priority to the welfare of the employees. Some of the other benefits

granted to the employees are medical, employee’s state insurance schemes, provident

fund schemes, festival bonus, overtime benefits etc. special allowances on occasions such

as marriage, death, etc is also provided.

Workers Participation

Workers are the strength of the organization. The employees of the company are

classified into three categories

Workers

Staff

Workers

Employee Grievance

The HR department gives special care to solve problems of employees at its initial stages

itself. The company follows an open door policy on suggestions and compliances;

management takes quick remedies for resolving the problem.

Personnel Records & Audits

Personal records are maintained for formulating and reviewing personal policies and

procedures. Complete details about all employees are maintained in personnel records

such as name, date of birth, material status, academic qualification, professional

qualifications, previous employment details, etc. It helps to supply crucial information to

managers regarding the employees. The company will follow external audit.

34

Implementing Organizational Policies

HR Department has to coordinate with line manager and see that the organizational

policies are being implemented in a proper manner. Disciplinary action can be initiated

against employees who are not following organizational rules and regulations. All these

actions are conceived and implemented by the HR department.

Determining Wages and Salaries

HR Department is also involved in conducting market surveys and determining the wages

and salaries for different position in an organization. This decision may be taken in

consultation with top management and the HR department.

Finance Department. Finance is defined as the provision at the time when it is required. Finance is needed for production of goods and services and their distribution. It is the lifeblood of an enterprise.

Finance manager heads finance department in this organization. There are various

function carried out by this departments. Finance department effectively does the

function of rising funds, investing them in assets and distribution return earned from

assets to shareholders. Since it is manufacturing concern, it is always in need of cash to

carry out its day to day operations. Even if the firm is having sufficient assets to balance

the liability, to working capital may be the problem if the components of these assets are

not managed properly. Thiscompany not liable to manage their operations without

managements of current assets. Thus working capital management is an important

function of this department.

35

Figure 6

Department Structure : Finance

The accounting functions of the department including preparation of trail balance on

yearly basis. They also prepare various financial statement like fund flow statement, cash

flow statement etc. managerial reports regarding travelling, telephone expenses are also

prepared.

Functions of finance manager

To raise necessary funds for the smooth flow of production and other activities

Prepare budgets for every year.

Take control measures in order to check the accounts.

Control over all matters relating to finance in the organization.

Prepare and create financial accounts 

Such as Trading, Profit and Loss Account and the Balance Sheet.

Keep and maintain financial records 

Finance Manager

Supervisor Sales Account

Account TaxesSupervisor BillingSupervisor Cash

Cash Billing Assistant Department

Data OperatorVoucher

36

Sales figures and records of expenditure would be held by the Finance department and

used by other departments also.

Prepare and plan internal financial information 

This would mainly be performed in the case of a budget, which is a financial plan and can

help managers take corrective action.

Analyse current financial performance 

How the firm has done in trading or expenses would be analysed primarily using ratio

analysis tools.

Pay creditors 

Finance Department would ensure that bills are paid to people the firm owes money to.

Pay employees wages and salaries 

Running the payroll system is another important task for Finance to undertake. Finance department is fully computerised and that enable fast recording, editing, and

alteration of records. Finance manager are expert in arranging necessary working capital

for this smooth flow of operation. The company is selling their products both for cash and

credit. The accounts and finance department ensure that the salaries to the employees are

paid in time. The department is also concerned with the preparation of budgetary control

of the concern. The department ensure that all the entries are properly posted in the books

of accounts.

Production Department.Production denotes the conversation of raw material to

semi finished or finished products with the help of call-in production process. The main

aim of any production system is to produce economically goods and services required by

the customers.

37

Figure 7

Department Structure :Production

The main purpose of production department in Pavizham group is to manufacture various

types of rice products, which is having a better demand from consumers both Kerala and

the international market.

Production manager

Supervisor Maintenance

Supervisor SupervisorWorkshop

Supervisor Boiler

MechanicalWorkmen

ElectricalWorkmen

Workmen Workshop

Boiler

Workmen

Team leader filling

Team leader process

Team leader loading

38

A manager heads the production department. There are different section under this

department like plant, maintenance department, work shop department and boiler

department. All manufacturing function is carried out under this department.

The main objectives of preventive maintenance department and corrective maintenance of

Pavizham group including minimising broke down, minimising long run maintenance

cost providing better working condition and reliable conditions for equipment to perform

at specific technical through service, replacement, repair, etc.

Production department it headed by production managers and is followed by quality

controller and supervisors.

The product capacity of the plant is 75 ton per week.The company can have

good inventory management. The companies have warehousing facilities.

With the help of computer technology the company can handle its functioning in proper

manner. The company can use Tally software for its process.

39

Production Process of Rice

Figure 8 Production Process Of Rice

Paddy Cleaner De-stoner Cleaned PaddyRawPaddy

Elevator

Cleaned Paddy Par Boiling TankMetal Cruty

Paddy Dryer Machine

Drying Plant

HeatExchanger

Blower

Storage Dry Paddy

Elevator

Paddy Cleaner Machined

Milling Section

Husk Removal

Bran Removal

Polishing2nd Phase De-

stoner

Elevator Machine

Color Sortex Machine Packing section Direct Marketing

40

The manufacturing process of part boiled rice is generally divided into five sections namely;

Raw Paddy Cleaning Section

Par Boiling Section

Drying Section

Milling section

Packing section

Raw Paddy Cleaning Section

The raw paddy in gunny bags is discharging to the raw paddy storage tank manually. The

paddy discharged to the tank is collected by a raw paddy elevator transfer the paddy to

raw paddy cleaning machine such as vibrating, cleaning, sieve, double de-stoner and the

blower. This machine removes lumps of soil, stones stalk and chaff of the paddy by

vibrator, motions. The bowler attached to this unit removes lightweight foreign material.

The cleaned paddy from this section is stored in storage tank by elevator.

Par Boiling Section

Par boiling is one of the critical processes which determine the quality and test of

parboiled rice. Even though, we are using superior quality paddy, the precise control of

temperature, pressure, time and water requirement of par boiling is required for getting

quality par boiled rice. Par boiling involves soaking steaming.

Paddy to impart a desire flavour to it and to increase out turn. It reduces breakage in

milling, improves storages life and help in the preservation of to vitamins and protein in

the rice grain. Pure water is pumped in to the par boiling tank. Then cleaned paddy from

the storage tank is fed into boiling tank under gravity. When paddy falls into the water

matured paddy will go to the bottom of the water in the tank and unmatured paddy and

other light foreign particles such as stalks and chaffs will float in the water. This will be

removed manually. Then this paddy along with water will be steamed 600 e to 800 e by

the steam generated in the boiling and key as half boiled condition for nearly six hours.

After six hours the water will be drained out from the conical shaped par- boiling tank

through a pipe fitted at the apex of the conical tank. Again steam from the boiler is

supplied to the boiling cone by steam controlling valve so that the paddy gets par boiled

41

within 3 hours. Here the temperature and purse of the steam supplied will be precisely

controlled so that heat input never eveed the predetermined level, which is fixedbase on

the nature of the paddy, otherwise paddy may over boiled and it deteriorate the quality of

rice and increase wastage during milling.

Drying Section

The boiled paddy is then discharged to conveyor belt though the bottom cone portion of

par boiling tanks. The unloaded boiled paddy is then taken by an elevator and is loaded

into the drive. The driver is thickly packed with stainless steel “V” port boxes. The heat

exchange extracts heat from the steam and transfers to air from blower. The hot air from

the steam heat exchange is passed though the stainless steel “V” port boxes so as to keep

it hot at 90c to 120e. When the boiled paddy is loaded to the top of tall drier, slowly if

falls in between the hot-tempered “It hot at 90c to 120e. When the boiled paddy is loaded

to the top of tall driver “V” port boxes towards the bottom of the drier. With the help of

the conveyor, again it is taken to the top of the drier. The paddy will not fall straight from

top to bottom. It would be falling in a curved path in between the hot, “V” port boxes.

The moisture, in the paddy will be evaporated and the help of elevator, the paddy will get

dried.

When the paddy is dried to the required moisture ie, about 14% moisture level. It is stored

in dried paddy storage tank.

Milling Unit

Husking refers to the removal of husk from the rice grains, rice milling is undertaken to

remove the husk and specified percentage of bran from seeds and endosperm.

Four principles rice milling method are employed in India.

Hand pounding .This method involves the pounding of paddy with poles or a

pestle and mortar.

Huller mill .The heart of huller rice mill is a fluted metal rotating with 500 to 600

rpm, which is a hollow stationery cylinder. Husk and bran are removed in one operation

by abrasive action. A second and third pass polishes the through the machine.

Sheller mills .An under run disk Sheller consists of low stones composition wheels

each 18 to 56 in diameter and laid on top of another. The bran is removed by polishing

cans or rice hullers.

42

Rubber roller mill.Each mill consist of pair of rotating rubber rollers between

which paddy is poured at 1 to 4 tone for hours, depending on the design of the mill.

Shelling results from the abrasion created by the two roles turning at slightly different

speed.

In the section dried paddy from storage tank is fed to rotary cleaning sieve with blower

and then to suction Type dry-stoner by elevators, which removes the stones chaff from

the dried paddy. The high density foreign particles are removed by vibratory and sieving

action. The light weight participles are removed by section. This cleaned paddy is

conveyed o the rubber roller Sheller for dehiscing by vertical elevators. The husk is

removed between two rubber rollers without affecting the shape of the rice. By using

rubber roll Sheller we can minimise the percentage of the broken rice product the

process. About 4% to 20% of the paddy remains unhusked. The mixture is conveyed to

husk paddy separator and then to paddy separator by vertical elevator. The blower

attached to the Sheller collect the husk and stored in husk storage tank. This husk is used

as a fuel for steam boiler.

The husk paddy separator and paddy separator separate the brown rice from husk and

paddy. The husk separated in this separator is also collected in the husk storage tank. The

paddy separate here in discharged at a third point and is send back to the rubber roll

Sheller for further dehusking.

Elevator conveys the dehusked brown to vertical rice whitener where the outer layer of

bran is removed by emery roller. The bran is sieved and separated. It is collected in the

bran room. The discharge from the whitener is supplied to rice grader where the broken

and black rice are separated and collected. The rice from grader is fed to vertical rice

polisher for future polishing. Here the rice is polished again by emery-coated rollers.

This polishing will give elegant appearance to rice.

Packing Section

The rice, which comes to the packing section, may be of different size and shape. The

grading unit separated milled rice (mixture of different size whole grain, head rice and

broken rice0 by a sieve grader. The cleaned and polished rice collected in the rice

storage tank of capacity 25 Mts manually weighted and bagged into 75 kgs, 50 kgs, 10

kgs, and 5 kgs by using electronic weighed scale and bag closing machine.

43

Production Process of Rice Powder

The manufacturing process of rice powder is generally divided into the following section

namely;

1. Raw rice cleaning section

2. Rice washing section

3. Pulverizing section

4. Roasting section

5. Packing section

Rice Cleaning Section

The foreign particles from raw rice are removed by vibratory and sieving action.

Rice Washing Section

The cleaned rice is washed with fresh water.

Pulverizing Section

The washed rice is powered by using pulverize.

Roasting Section

The pulverizing rice is roasted in a stainless steel steam jacketed roasted.

Packing Section

This roasted rice powder is packed into .5 kg and 1 kg capacity pouches manually

By Products of Rice Mill Industry

Rice Bran .Rice bran is the by product of milling process. Although the bran has

long been recognised as an excellent source of vitamins and minerals, it has been under

utilize as human food and has traditionally been used primarily in animal foods. The

value of rice bran can be increased through understanding of the characteristics and

composition of this component.

Research has shown that oil extracted from rice oil extracted from rice bran contains a

unique complex of naturally occurring antioxidant compounds. These may have positive

health benefits as well as serving to improve food storage characteristics. On the basis of

44

above objectives Kalady Rice miller consortium Pvt. Ltd., Kalady is now extracting oil

from rice bran and marketing in the name of “Leads”.

Rice Husk .Company is utilizing the husk in the powder plant to generate electric

powder. After generation the ash from the plant is going from silica conversion. Rice

husk also can be utilized as furnace fuel; it is mixed with cow dung for the preparation of

cow dung cake it is given as cattle feed also.

Production is essential function for a manufacturing company. Without production the

company can’t to sale, Production may be two types, one type is raw material converted

into finished goods and another type is work-in- progress or semi-finished goods

converted into finished goods. For these two purposes, every manufacturing unit has

their own production department. These production departments must do the controlling

activities of raw material their allocation, workers, wages, cost of production, etc. are the

function of production departments.

Production department consist of one manager and twenty operators. Production

departments produce various items. Each item has its own separate section for

production. Every department has its own expert to perform the work. The important

steps involved in the production departments are as follows.

A work order is received which contain the details of product to be produced, its

quality, model, delivery date, remarks etc.

If it accepted the production in charge signs and sends it the departments.

The production in charge sends a material requisition to the store.

A purchase officer purchases the necessary items and kept in the store.

After the details are entered in the order register.

After production, finished product is sending to the quality control unit for

checking the quality of the product.

After getting the approval from the quality department the products is send to the

packaging section.

When packing is completed the packets send to labelling and send to the store.

Delivery is made in the store.

Functions of Production Department

45

The main function of production management is to control labour cost. But with the

development of factory system towards mechanization and automation, indirect labour

cost increase tremendously in comparison to direct labour cost. The planning are control

of these activities required more expertise and specialisation techniques.

Their function can be classified on the basis of their order;

a) Planning

b) Organising

c) Controlling

Planning

Planning consist the following;Production design and development.Deals with issues of converting market feedback

on the requirements pertaining to the type of product to be produced into specifications

and drawings that help in the production.

Production process selection .Helps to evaluate different process options possible to

produce of the product in terms of volumes and variety and other factory to select the

best suited process.

Planning facility location .Helps to evaluate different possible location for

production and selecting the most suitable one that meets the organizational objectives of

producing in required quantities at minimal cost.

Planning facility layout .Refers to studying various options in terms of plant and

machinery layout that enables smooth flow of material for smooth production.

Capacity planning .Deals with the issues pertaining to planning the capacity for the

plant that enables cost-competitive production even with certain degree of fluctuations in

the required volumes.

Production planning .Helps effective plan the production to meet the required

quantities of products within the scheduled time.

Organising

The organising function includes the following;

Work study .Also known as time and motion study that aims at improving the

cycle time

required for producing the product

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Material management.The aims at establishing source for required materials in

terms of input materials or consumable at the right time so no delays in production occur

and no unwanted inventories are created.

Purchasing management .It is responsible for making the input material available

in time, at the right price and in the right quantity and quality.

Controlling .Controlling function comprises the following;

Stores management .Refers to managing the stores for input materials,

consumables and finished stocks while avoiding over stocking of material. Stores are also

accountable for recording the stock and consumption for these materials.

Value analysis .Refers to the process of obtaining possible combination between

cost and required functional specification of the product by assigning a value to every

operation of the production process and identifying the function the product.The helps in

enhancing the value of the product.

Quality control .This is responsible for monitoring the quality requirements of the

product so that no defective parts are passed on the consumers. For this, various systems

associated with the process are assessed to improve them so that no defective parts are

produced.

Maintenance management .This is responsible for ensuring continues production

in terms of machinery and other required infrastructure so that no breakdowns occur to

hamper the production flow.

Inventory management .This is responsible for maintaining minimum inventory

for all critical materials and ensuring no over-stocking takes place.

In the modern times, production manager has to perform variety of functions they are

follows;

a) Design and development of production process.

b) Product planning and control.

c) Implementation of plans.

d) Administration and co-ordination of activities of the department.

e) Responsible for producing necessary goods and services.

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Purchase Department.It is a very important department of this company. The major

function carried out by this department is as follows;

Keep a tag on stop.

Products requisition for separate department.

Finding vendors.

Purchase of products like electronic components, motor/bearing, etc. packing materials,

vehicle spares and stationery etc.

Figure 9

Department structure :Purchase

Functions Of The Purchase Department

The purchase manager controls the purchase department. The department contain several

functions and several responsibilities for the purchase manager. They are follows;

Purchase Manager

Purchase Assistant

Workers

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Purchase of the raw materials. The main function of the manager is to make

better economical purchasing of the raw materials from the market. The purchased goods

will be high quality and economical and at an affordable price.

Quality of the products .The main function of the purchase manager is to find

and inspect the quality of the product. For this the manager makes several quality tests

and if he satisfied in the quality he give the approval letter to the product.

Inventory control .The main function of the manager is the inventory control the

better way of the Inventory control we control the loss of the product during the process

of the production.

Pricing system .Pricing is an important factor of the product. It determines the

companies’ whole department. It depends on the quality and quantity of the product.

Pricing is mainly based on the market fluctuations, on-going market, etc.

Purchase register .The purchase manager will have to register the entire

document relating to the purchase. And he prepares all the day to find the stock positions

of the organization.

Budgetary control .The company use the advantages of Net Present Value

method (NPV). Budgetary control is the process of developing a spending plan and

periodically comparing actual expenditure against that plan to determine if it or the

spending patterns need adjustment to stay on track. This process is necessary to control

spending and meet various financial goals.

Storage Department .A proper management and control of material is highly essential

for an effective cost control. A rupee saved on material will directly help to increase

profit.

Material management covers all aspect of material cost, material supply and utilization. It

covers whole range of function involved in converting the raw materials and ancillary

supplies in to finished product

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Figure 10

Department structure : Storage Department

.

In Nambiyattukudy group of company (Pavizham group), the stores department keeps in

godowns paddy procure from different places. Store department also keeps finished

products till they are dispatched to the market.

Storage

Storage means custody of materials in a scientific manner so that materials can be

located and indicated easily and handled without difficulty.

Identification marks

The materials should be properly preserved to prevent determination in quality, loss,

damages, etc. Packing should be done to protect the materials.

Record keeping

Major records to be maintained in the stores section and how they should be maintained

are briefly explained below.

Day book

Major records of all material are coming in to stock. The entry in the daybook shall be

numbered and entries shall is determined.

Stores Receipt Voucher (SRV)

This is a record of receipt of material in stock.

Store manager

Data entry operatorPurchase manager

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Material Requisition

This is the formal record for issue of materials.

Stores Ledger

It is an important record maintained in the stores for recording all stores transactions in

all chronological orders.

Bin Card

It is the record of quantity usual! Y placed inside the bins or attached to the materials.

Store Verification

It is an important function and helps to proper control over the materials. It helps to;

Examine the correctness of stock records.

Examine the correctness of value of stock.

Defect, excess, shortage, damage, deterioration from procedure, etc…

Locate weakness in stock control and suggest improvements.

Have a moral control over the staff verification of the stores can be done.

The internal auditor does the verification.

Logistic Department.In the company, the main functions of logistic department

are as follows;

Keeping a track of vehicle

Driver management

Vehicle movement management

Repair shops are provided for repairs and maintenance

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Figure 11

Department structure : Logistics Department

Logistic manager

Vehicle

Workshop workersDrivers, Cleaners

Supervisor workshop Data entry operator

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Quality Control Department.Pavizham rice is more concerned about

quality policy. The quality controller checks quality of the products from at the time of

buying of raw materials to sales of products.

Figure 13

Department Structure :Quality Control Department

At the time of procurement of raw materials the company gets good quality paddy only.

The quality controller checks the quality of the product in each stages of the production

and he trains the workers in every week for improving the quality.

Checking of purchased materials quality.

Control of handing, preservation and packing of raw materials and equipments

receipt through shipment of the final products.

Control of manufacturing unit

Establishing points of inspection and tests at selected in the production process.

Quality manager

Quality controller

Assistants

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Organizational Analysis

SWOT analysis is a structured planning method used to evaluate the strengths,

Weaknesses, Opportunities, and Threats involved in a projector or in a business venture.

A SWOT analysis can be carried out for a project, place, industry or person. It involves

specifying the objective of the business venture or project and identifying the internal

factors that are favourable and unfavourable to achieving that objective. The technique is

credited to Albert Humphrey, who led a convention at the Standard Research Institute in

the 1960s and 1970s using data from Fortune 500 companies. The degree to which the

internal environment of the firm matches with the external environment is expressed by

the concept of strategic fit. Setting the objectives should be done after the SWOT analysis

has been performed. This would allow achievable goals or objectives to be set for the

organization.

Identification of SWOTs is important because they can inform later steps in planning to

achieve the objective. First, the decision makers should consider whether the objective is

attainable given the SWOTs. If the objective is not attainable a different objective must

be selected and the process repeated.

SWOT analysis examines organizational strength and weakness and environmental

opportunities and threats. SWOT analysis is undertaken to understand firm’s external and

internal environments. A conclusion identification of the relevant enables an organization

to focus its attention on these factors which are intimately related to its mission,

objectives and strategies.

Strengths

Pavizham Healthier Diet Pvt. Ltd is private limited company which mainly deals with

manufacturing of high quality rice. It is an ISO Certified company. The strength of the

company is the workers cooperation and other strength of the company are brand name of

the company, its high quality product, Low employee turnover, their increasing quality of

manufacturing and better service. Organization could maintain a very good safety

performance. The organization has been receiving safety onwards from the national

safety council of India.

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Weakness

Scarcity of raw materials is one of the main weakness of the firm. The firm has no

frequent advertisement to increase their demand for their product. Seasonal change may

create lack of availability of paddy, it is another weakness of the company and they have

a very low budget for advertisement. The company is following ready payment options so

the no of shop are less.

Opportunities

The company has an opportunity to expand its distribution areas and as there is growing

demand for rice they can expand their production unit. By expanding its distribution areas

the company has greater opportunity to enter into wider market. Growing demand of

product and new development in technical field creates an opportunity to the company.

The company introduces promotional programs. The company by going more into direct

marketing has an edge in the market.

Threats

The main threat is that high competition in the market. Availability of

substitutes,Promotional programs of other brands and Obesity caused by high use of rice

are some of the threats mainly faced by the company. Decreasing paddy cultivation and

increasing labour cost are serious threat to the company.

CHAPTER FOUR

OBSERVATIONS AND

CONCLUSION

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Observation and Suggestions

Observation

Pavizham is the generic name of rice & rice products produced by 14 individual

industries located in about 50 Acres at Aimury in Koovappady Village. Various varieties

of rice & rice products come out of these factories day in and out. The marketing arm of

these companies is Pavizham Healthier Diet (Pvt) Ltd, Apart from rice & rice products

the company also markets Tamarind, salt, coconut oil, rice bran oil etc., These units are

owned by various members of the Nambiyattukudy family. The manufacturing unit has

the most modern technology in rice milling and has imported the machinery item China

and Japan. The products are mainly marketed in Kerala and other parts of India. The

products are being exported to other countries including Europe, Africa, Gulf and USA.

The industry analysis done as part of the study reveals that rice has a high propensity to

be substituted by substitute products like wheat and oats.Pavizham Healthier Diet (Pvt)

Ltd has a functional type organization with clearly defined departments and three levels

of hierarchy with clearly defined roles. Product quality is one of the strongest factor that

contributes to the immense brand value that Pavizham rice enjoys.

Company has a well organized structure and its functional .There is a good coordination

and cooperation between departments .Maximum preference of quality of products.. The

company is registered under ISO9001.There are 200 employees in the company. Most of

the employees are of more than 23 years. Most of the employees are having more than

2years experience. The company has 2 Trade Unions, namely; AITUC and INTUC.

Female workers are few. The main competitor of the company is Nirapara.

The systematic analysis of the strength and weakness of the company throws up certain

interesting facts about Pavizham. Lack of adequate advertisement and decreasing paddy

cultivation is identified as one of the major factors that hamper the growth in revenue of

the company.

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Suggestions

Company does not involve in more advertising. More advertisement will create

more customer relations and increase sales.

In this organization the employees do not have any common dress code. It is

advisable to follow a common dress code.

In this company there is lack of professionalism in the company. Professionalism

of management was made things systematic and planned.

Due to better relationship between management and employees, absentieesm and

labour turnover is reduced.

There is no separate compliant department. If there is a separate department, it

will help to find out problems and solve them immediately.

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Conclusion

Pavizham Healthier Diet Pvt. Ltd is a leading manufacturer of the assured branded rice.

Pavizham is marketed in Kerala and aboard. It has two independent units for the

manufacturer of rice. The present infrastructure of the Nambiyattukudy group of

companies consists of 14 industrial units. This company is at it’s strive towards

excellents. It has happened due to the combined efforts of it management and the

dedicated workforce. The company was able to attain the ISO certified for the quality

management ISO 9000. The main positive aspect of is that it could maintain a better

relationship between the management and employees. And the company does not have

any trade union for the employees and hence no labour problems. The overall study on

Pavizham Healthier Diet Pvt. Ltd reveals that the company is in a good stage which will

lift to a new position instead of falling down.

I got this wonderful opportunity to study and understand the overall functions of

Pavizham Healthier Diet Pvt. Ltd ,during the course of study. I was successful in

achieving certain objectives and could familiarize with an organization and its

environment. This has improved my confidence by its successful completion to

undertake such studies in the future.

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BIBLIOGRAPHY

Kotler, Philip. (1985).Marketing Management. New Delhi: Prentice Hall of India Pvt.

Limited.

Pavizham Healthier Diet (Pvt) Ltd, (2014).Company Profile, Koovappady.Retrieved from

www.pavizhamrice.com.

Periyar rice (2014). Company Profile, Koovappady.Retrieved from

www.periyarrice.com.

Nirapara rice, (2014).Company Profile, Okkal. Retrieved from www.nirapararice.com

.