MY FOOD ROLLER FLOUR FACTORY PVT.LTD
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Transcript of MY FOOD ROLLER FLOUR FACTORY PVT.LTD
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1. INTRODUCTION
My food Roller Flour Factory is located just three kilometers away from the Mylapra
Town, Pathanamthitta Dist. The unit is established with the financial assistance of NCDC
(National Co-operative Development Co-operation). The project cost approved by NCDC and
government of Kerala is Rs.384.28 lakhs. Now the present factory is registered as a company
with the name My Food Roller Flour Factory Private Ltd promoted by the Mylapra Service
Co-operative Bank having 96% shares. Company markets their products in the name Amrutha.
The main products manufactured here are Atta, Maida, Sooji, Flakes etc. Company started its
commercial production on 22nd December 2003.
The essential ingredient needed for production is Wheat. Wheat is supplied mainly from
North Indian states like Rajasthan, Gujarat, Bihar and Madhya Pradesh. My Food Roller Flour
Factory has a Depot in Chenkotta, Tamilnadu. The unit is having SSI (Small Scale Industry)
registration of the government of Kerala. This unit is the only one established in the co-operative
sector in the country at present. The company has distributors in all districts of Kerala.
The wheat products generally used for human consumption are Maida, Atta, and Sooji.
Bran is used commonly as cattle and poultry feed. In the olden days, wheat used to be crushed in
stone crushers known as Chakkies.In this process only one type of product namely whole meal
Atta alone used to be made. A modern flour mill is automatic and it processes wheat after
washing and destining. Major portion of the task is done by the machines and only less human
effort is required in modern flour mills.
There is strong evidence that diets rich in whole grain foods may reduce the risk of
Coronary Heart Disease (CHD). The health benefits come from the whole grain. Today,
Whole Wheat is increasingly being recognized as a key source of heart-healthy promoting
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nutrients. Whole wheat is composed of 2 parts namely Bran, Endosperm. Bran is a rich source of
fiber, vitamins and minerals. Endosperm contains carbohydrates and proteins while the Germ isrich in nutrients. These three parts of the whole wheat grain work together in powerful ways to
help protect against disease.
All dirt and impurities will be removed by washing with water and using separators and
cockle cylinders. Iron filing will be removed with the help of magnetic seperators.In other
words, wheat is thoroughly cleaned in the cleaning section and ground in the roller flour mills.
There after it is sifted and purified in plan sifters and semolina purifiers to obtain the fine
product hygienically. Thus the roller flour mills serve the nation on its priority food front by
making available hygienically fine and wholesome wheat products in large quantities.
Kerala was mainly a rice consuming state until late fifties. However,food habits
have changed fast due to economic and other compulsions
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1.1 OBJECTIVES OF THE STUDY
The following are the objectives of the study
To understand the organizational hierarchy.
To study about the functioning of each department.
To fulfill the requirement of the curriculum.
To get a clear view of the day-to-day functioning of the industrial establishment.
To identify and evaluate the strengths, weakness, opportunities and threats faced by the
organization.
To identify the problems faced by the organization and make suggestions for the
betterment of the organization.
To evaluate the growth prospectus of the company.
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1.2 SCOPE OF THE STUDY
The scope of the study conducted includes the study of the objectives of the company,
a study of the various functional departments, their activities, the product range and the
quality policy. The organization study comprises of the entire functioning of the
organization, which includes the nature of business it involved in, the current competition
scenario, the departmental segregation created for the implementation of plans and
procedures, the current branches that it controls and future expansion plans which includes
both the national and international markets.
Moreover the needs to conduct an organization study lies in the fact that it provides a
deep understanding of what a company is all about and the underlying factor of its existence.Different department were analysed in detail and SWOT analysis of the organization was
done.
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1.3 METHODOLOGY
The methodology adopted for the study is through the collection of primary and
secondary data.
Primary data
Primary data consists of fresh data and hence original in character. It is collected through
direct observation and from live discussion with the managers.
Secondary data
Secondary data are those that have already been compiled and have been passed through
the statistical process. Secondary data were also collected from business journals, internet annual
reports, magazines etc.
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1.4 DURATION OF THE STUDY
The organizational study in MY FOOD ROLLER FLOUR FACTORY was conducted
from 3rd may to 31st may 2010.So a study plan has to be prepared for the successful completion
of the study. The schedule for the study was:
1st week (3rd may 2010 to 7th may 2010): On the first day of the study I met
Administration cum personnel officer. He gave brief details of the department and its function,
future plans, clear-cut image of the organization.
2nd week (10th may 2010): Information was collected from finance department and
analyzed the financial performance of the company. Finance Manager assisted me by providing
various financial details.
3rd week (18th may 2010 to 23rd may 2010) the details were collected from marketing
department.
4th week (26th may 2010 to 31st may 2010) Informations were collected from the
production department regarding the Raw Materials, Production process, Packing.etc. As this
was the last week of my Organizational Study Ive visited personnel department and I met few of
the employees in the company and asked about the companys employ welfare activities.
1.5 LIMITATION OF THE STUDY
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Company didnt give permission to go through all departments.
The study was limited to areas around Pathanamthitta.
The sample size was very less in view of customer studies.
The study was not able to separate the bias or influence of extraneous variables
completely
2.1 INDUSTRY PROFILE
Today large quantity of wheat and wheat products are consumed every day in the state in
different forms. To meet the growing demand wheat products like Maida, Atta and Sooji are
imported from different places in large quantities. It takes extra time and money. This situationleads the entrepreneurs to think about the invention of wheat flour mills in Kerala. A few such
units have already grown up in the state and some are under implementation. Also some flour
mills are relicensed by the government of India, this added possibilities to the setting up of more
wheat flour mills.
The background explained above made by the Board of Directors of Mylapra Service Co-
operative Bank headed by its president Mr. Jerry Easow to promote modern wheat flour mills in
Pathanamthitta District. The location of the proposed project is at Mylapra in Pathanamthitta
district. A new company introduced by the name of My Food Products is under incorporation
with Mylapra Service Co-operative Bank. This Company is introduced with the financial
assistance from the ICDP. The proposed project will provide more employment opportunities in
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the state directly or indirectly. It will also gain the state by way of sales tax. To sum up, the
proposed wheat flour mill in Pathanamthitta district will be another step forward in the
industrialization of the state and another move to provide new employment opportunities to the
people of Pathanamthitta.
The proposed project is promoted by the Mylapra Service Co-operative Bank Ltd.
No.639, Mylapra Town P.O, Kozhencherry Taluk, Pathanamthitta. Mylapra Service Co-
operative Bank is a registered co-operative society situated very near to the Pathanamthitta town.
The total deposit of the banks as on 31.03.2001 is Rs 988.35 Lakhs. The working capital of the
bank is Rs. 1154 Lakhs and the loan outstanding is Rs. 677.69 Lakhs.
The present activities of the bank are as follows.
a. Fixed deposits for different terms such as Athulya deposits, Swayam Vardhini,
Soubhagya deposits and Mangallya deposits.
b. Recurring deposits.
c. Home safe deposits.
d. Daily deposits.
e. Savings Bank Account.
Bank grants many loans like Agricultural Loans, Short Term Loans, Non- Agricultural
Loans, Business Overdraft, Gold Loan and other schemed loans as per the bank rules. In addition
to these bank is operating consumer store, supermarket, Rubber Trading etc.
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Historical Development
The milling of flour from the grain has its origin in the early history of all major
civilizations. It is generally regarded as the oldest known industry. The basic milling techniquewas to grind the grain between two stone surfaces. This enabled the tough fibrous bran skin to be
separated from the endosperm, which then was ground into a fine powder. This method, utilizing
saddle stones or pestles and mortars appeared to have developed independently in a number of
areas around the world.
White flour was first produced in Hungary and Germany in the 18 th century. It became so
popular that the exported product sold in Europe for up to ten times the value of unrefined whole
meal. White flour was manufactured by arranging a number of stone mills to form a series of
grinding passages. Primitive purifiers was introduced in 1810 to remove bran from intermediate
stocks and the remaining material, which has high endosperm content was ground into white
flour on additional stone mills. The process referred to as the Gradual reduction system of
milling.
In modern flour mills, millstones have been replaced by steel rollers. Old style reel sitters
have been replaced by modern plan sniffers. The design of purifiers has been radically improved
and many new ancillary machines have been incorporated into the milling system. The same
basic principles of the gradual reduction system of milling, however are still utilizing processing
technology that was fully developed. The development of the flour milling industry has been
associated with advances of equipment design, which has improved operating capacity and
efficiency, but no major technological breakthrough has occurred.
WHEAT CLEANING
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Before milling starts, the wheat is tested for protein and other characteristics and graded
into various categories. It is then cleaned to remove materials such as stones, dust and weed
seeds. A number of grades are usually then blended together to produce the desired type of flour.
Soft low protein wheat is most suitable for biscuit flour; white flour for bread is usually made
from harder, higher protein wheats.
WHEAT CONDITIONING
Water is added to the wheat blend in a process called conditioning or tempering. The
amount added is usually between 4-6% depending on the initial moisture content of the grain and
the type of wheat being milled. The wheat is them allowed to lie in the conditioning bins for
between 10 to 20 hours. The bran layer are then toughened by the addition of water, minimizing
shattering during milling and the endosperm is made more friable (crumby) requiring less power
to be ground into flour.
FLOUR MILLING
The separation of the endosperm material from the bran layer of the Kernel and the
gradual reduction in size of the endosperm particles is achieved by a complex combination of
grinding rolls (break and reduction rolls) sifters, purifies and the other equipment. The tempered
wheat is fed into roller mills which hold two steel cylindrical rolls with longitudinal grooves
(flutes) cut into their surface. As wheat passes between the rolls which rotate towards each other
at different speeds; the bran is gripped by the flutes on the slower rolls. The friable endosperm is
torn away into granular chunks (semolina) or fine powder (flour) by the overtaking flutes on the
faster roll.
The purpose of the Break system is to break open the wheat grains to release semolina
particles and leaves bran in the largest particle size possible, thus minimizing bran contamination
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in the semolina. The granular stocks produced are predominantly semolina interspersed with
bran particles, although undesirably, some flour is produced at this time. The main production of
fine flour comes from the later reduction stage.
To purify the mixed granular stocks of semolina and bran coming from the break system,
they are passed through the purification system. A purifier is essentially a long rectangular
machine with oscillating sieves through which a current of air is drawn. Semolina stock is
conveyed along the length of sieves and the shaking motion together with the upward current of
air causes the stock to stratify.
The lighter bran fragments are floated above a layer of pure semolina which gradually
passes through the sieves. The bran fragment passes over to the end of the sieves. The particlesof purified semolina are then crushed to fine flour by the reduction system. This is comprised of
roller mills fitted with smooth rolls operating at slightly different speeds. Flour is removed by
sifting the ground stock over fine mesh nylon screen. Coarse mesh separates the bran flakes. The
size of any intermediate product is gradually reduced by subjecting it to repeated roll and sifting
treatments. Up to eight to eleven passages may be employed, depending on the design of the
plant.
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2.2 COMPANY PROFILE
INTRODUCTION
Wheat products are sold by the brand name AMRUTHA, manufactured in the food
processing unit, promoted by the Mylapra service co-operative bank ltd. The products include
100 percent enriched natural Atta, Maida and Rava with export quality standards. As a
distinctive blend of natural freshness and flavor, Amrutha is processed under the expertise of
sophisticated modern technology to retain the natural nutrients and the aroma of high quality
wheat.
HISTORY OF THE COMPANY
My Food Roller Flour Factory is owned by the Mylapra Service Co-operative Bank.
The factory is financed by NCDC (National Co-operative Development Co-operation) under
ICDP scheme. Mylapra Service Co-operative Bank has prepared a project report for setting up a
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wheat flour factory with a capacity of 70 matrix tone per day with a capital investment of 384.28
Lakhs.
The construction work of the factory has completed by November 2003 and the formalinauguration was done on 2nd December 2003. Company starts its commercial production from
22nd December 2003.
In the inaugural address of Mr. M.V.Raghavan minister for co-operation to whom the
bank is heavily indebted for the help he had rendered to the bank in the past gave a standing
ovation to the effort made by the bank in various fields. He called upon the office bearers of the
Mylapra service co-operative bank to carry on with their non banking activities with ardent
determination and superior values.
The function as presided over by Mr. Jerry Easow Oommen, the president of the Mylapra
service co-operative bank. He talked about the circumstances that led to the successful
completion of the factory within the shortest time span. Mr. Francis George MP made the
building inauguration and Mr. Raju Abraham MLA did the switch on of the factory. Mr. K.K.
Nair MLA inaugurated the public meeting. Adv. K. Ananthagopan, Mr. J. Sudhakaran IAS and
Mr. B.R Nair launched Amrutha Atta, Rava and Maida respectively. It was in this section that
banks official website was formally launched by Mr. Mathew Kulathumkal, president district
panchayat, Pathanamthitta.
LOCATION
MY FOOD ROLLER FLOUR FACTORY, manufacturers of Amrutha Atta, Maida and
Rava is a fully fledged factory with adequate quality control facilities. It is located at Mylapra, a
small village in the Pathanamthitta district.
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VISION
We continue to work to support health life style and flourishing societies through
the creation of quality products
BOARD OF DIRECTORS
Jerry Easow Oommen Chairman
Joshua Mathew Managing Director
NR Sunil Kumar Director
E.K. Koshy Director
K.A. Kunjuraman Director
K.M. George Director
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100 percent Natural: Processed from high quality natural wheat from selected fields across the
country, a perfect blend of natural freshness and aroma to make your life 100 percent natural.
100 percent Nutrient: Enriched with all the energy giving vital nutrients, excellent nourishment
for people of all ages, 100 percent nutritious to make you 100 percent healthy.
100 percent Hygienic: The finest natural wheat is carefully examined and then subjected to a
unique dry washing process. Sophisticated grinding process is adapted right from the beginning
to the packing to ensure 100 percent hygiene.
100 percent Pure: Processed under foreign technology with modern expertise. The raw material
while processing is untouched to ensure 100 percent purity.
100 percent Tasty: Always delicious to make your family happier.
The products include 100 percent enriched natural Atta, Maida and Rava with export
quality standards. As a distinctive blend of natural freshness and flavor, Amrutha is processed
under expertise of sophisticated modern technology to retain the natural nutrients and the aroma
of high quality wheat.
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2.3 PRODUCT PROFILE
PRODUCT
Quality is the trade mark of Amrutha products. My Food Roller Flour Factory maintains
a lab to ensure the quality of the products. Every day products are tested at the laboratory. This
help to ensure that ISI standards are maintained and no compromise on quality will be allowed.
One MT of wheat when processed gives the following items.
Maida 55% 550 kg
Atta 12% 120 kg
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Sooji 14% 140 kg
Nice Bran and Flakes 16% 160 kg
Waste 3% 30 kg
Total 100% 1000 kg
Of the above, first 3 items namely Maida, Atta and Sooji are for human consumption;
whereas fourth item nice bran and flakes is used as cattle feed or poultry feed. It is proposed to
bring out the foresaid consumer products in handy and small packets so that all the sections of
the society will be usually served.
PACKING OF PRODUCTS
Whole Sale Packing - 90kg, 50kg, 25kg, 10kg
Consumer Packing 5kg, 2kg, 1kg, 1/2kg.
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2.4 ORGANISATIONAL STRUCTURE
19
Bo
ardofDirectors
GeneralManager
Adm
inistrativeOfficer
Production
Department
PersonalManager
FinanceDepartment
Marketing
Department
PlantMana
ger
Personnel
Department
FinanceManager
MarketingManager
Milling
Section
Quality
Cont
rol
Section
OfficeStaff
A
ccountant
SalesMan
Clerk
Miller
LabAss
ista
nt
Fitter
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3 DEPARTMENT PROFILE
1. PRODUCTION DEPARTMENT
2. HUMAN RESOURCE DEPARTMENT
3. FINANCE DEPARTMENT
4. MARKETING DEPARTMENT
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PRODUCTION DEPARTMENT
23
General Manager
Assistant Manager
Production Manager
Miller
Lab Assistant
Floor Men
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3.1 PRODUCTION DEPARTMENT
The production department is the heart of the company and it works 24 hours a day. The
manufacturing process of Amrutha products starts with the purchase of raw materials. The chief
raw material used for the manufacturing of Atta, Maida and Rava are pure wheat. The main
places from where wheat is purchased are the northern states. A team of dedicated men and
women works in the sophisticated processing unit with advanced machinery.
The wheat is vested for finding out quality. There are two types of wheat namely:
(1) Hard wheat
(2) Soft wheat
The wheat is washed, processed and grained. The products are Atta, Maida, Rava and
Bran.
Quality Checking
Stringent hygienic measures are applied with regular laboratory testing. The research and
development team works for quality improvement by strict measures. Ample research supports
provided by its research and development team to qualitatively increase and improve upon
sophisticated measures.
Machines used in the production process
The production process consists of three sections.
Cleaning section - Where the wheat grains are cleaned.
Milling section - Where the wheat grains are milled.
Packing section - Where the products are properly packed
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before reaching to customers.
Machines used in each section are described below
Cleaning Section
Machines Use
Elevator Used for lifting of wheat
Conveyor Used for convey to elevator
Bins Used for storage of wheat
Separator Separation of dust, mud, stick etc
Scourer For scouring or polishing of wheat
Stoner For removing stone from wheat
Dampener For washing of wheat
Milling Section
Machines Use
Roll Body For grinding of wheat
Plan sifter For sieving of grinded wheat
Purifier For Rava purpose
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Packing Process
The packing process is especially vital to ensure that the product reaches the consumers
in a fresh condition at a minimum cost. High quality single source solutions are imported for
everything from raw material processing till categorically excellent packing. The packing norms
implemented are according to the international standards in protecting, preserving and
marketing. The usual standard packing sizes used are 90kg, 50kg, 10kg, 5kg and 1kg.
Measures taken for packing
Inspection of packaging materials specification in terms of
Weight
Size for A-will gunnies
Transparency
Printing
Appearance Level
Mesh size
Thickness
Size of the woven poly layer films and bags pouches
Measures taken for input material
Purchase of wheat is decided based on the representative samples received from
the seller and decision taken as per the comparative quality result with basic
sample.
100 percent inspection of the purchased wheat quality as per the representative
samples collected as per the sampling technique.
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PRODUCTION PROGRAMME
Maida 55%
Atta 12%
Sooji 14%
Nice Bran and Flakes 16%
Waste 3%
Total 100%
Assumptions
1. The plant is capable of processing 70 MT of wheat per day.
2. Installed capacity is 21000 MT.
3. 300 working days per annum on 2 shifts.
4. Capacity utilization will be 60 percent during first year 70 percent during second year
and 80 percent during third year.
PROCESSING
Wheat from the storage go down of the mill fed into an intake hopper where it is
transported by a bucket elevator to the cleaning elevators where lighter impurities such as dust,
mud, weeds and straw are separated from the grain flow. Another function of the cleaning
separator is removal of bigger admixture smaller than grains such as sand and small weedswhich are removed by sieve. Permanent magnets remove Ferro-magnetic admixtures from the
grain and at the same time feed the bucket elevator. Then this clause tier, whichremoves smaller
black grains, cockle and other unwanted grains from the wheat and after the grains goes into the
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washing machine where the wheat is thoroughly washed and cleaned and whizzed
simultaneously.The waste from the washer will be collected in sump and discharged in thedrainage or it can be used for our own agricultural purpose. The washed grain then goes into the
scourers machine where the outer hulls and beards of the grain are removed completely in the
process. The above described flow can be altered depending on the quality of wheat and the local
conditions. The wheat after going through the cleaning process is conveyed into the conditioning
of the wheat in storage bins for being conditioned. The total maximum tempering or
conditioning period is adjusted from time to time depending on the quality of the oil transported
by a worm conveyer or by an elevator to the brushing machine. If needed the conditioned and
brushed wheat is led through the automating damper where its moisture contents are removed.
The wheat is fed into the mill through a magnet for final checking of Ferro magnetic mixtures.
GRINDING AND SCREENING OF WASTE
Sometimes the utilizable screening wastes from all cleaning machines are collected to
one section of the plan sifter where they are sifted and separated. The over tail of the first group
of the sieves remove bigger impurities and even healthy grains which might have joint the waste
through a defective sieve of any cleaning machine. Such part is collected and fed into the hopperat the cleaning section and cleaned again. The over tails of the second group sieves are collected
directly into a worm conveyer and the bran is send separately for packing.
Two numbers of high pressure fans will be installed for pneumatic lifts in the milling. A
part of this will be a complete aspiration for the purification by value control aspiration system.
Thus you may find on the whole there are four operations in roller flour mills via, cleaning or
screening of wheat, grinding of wheat in various stages such as break reductions by means of
roller flour mills, purification and sieving of products to obtain various grades of stock from the
wheat crushed by plan sifters and purificators. The final stage is packing of various products in
the ground floor of the mill. The factory is using both manual workers and machines for the
purpose of packing.
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3.2 HUMAN RESOURCE DEPARTMENT
29
General Manager
Assistant Manager
Production Manager
Miller
Lab Assistant
Floor Men
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PERSONNEL DEPARTMENT
(HUMAN RESOURCE MANAGEMENT)
Organization development can be achieved through the development of skilled workers
in the organization. Creative effort of the workers and their attitude towards work plays a
dominant role in the success of an organization. The impressive productivity and quality is the
hallmark of My Food Roller Flour Factory. Now the firm have good committed and disciplined
work force which leads a high degree of productivity with impressive level of quality. The
company gives much importance for the welfare of the employees and development of them.
The organization promotes the participative management concept especially in quality circle
employee suggestion schemes etc.
Human Resources: Conducting training and development of all workers
including management and contract based workers.
Welfare Department: Canteen facilities, shift buses, uniforms, farewell
arrangements, recreation etc comes under this section.
Personal Structure
The employees of the organization can be classified as managerial, technical factory
workers, office and administrative structure and security structure. The work is again classified
into skilled, semiskilled and unskilled workers. All Sundays are holidays for the employees.
Workers can take sick leave (12 days) and casual leave (12 days). The company also provides
training facilities to the employees. On the job training is formally used and training is given by
the immediate supervisor. New staffs are appointed on the basis of probation and after the
completion of the probation they are appointed on the basis of supervisors report. Efficient
employs are appointed as permanent staffs.
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Appointment
Appointment is strictly on the basis of experience. Relevant experience is a must to work
in the milling section. Recruitment is conducted by the board of Mylapra Service Co-operative
Bank. Candidates to be appointed in the milling section must require experience in milling
technology. Candidates from outside states are preferred to work in the milling section. This is
because candidates having experience in milling technology can only be appointed in milling
section. Such employees are not available in Kerala. Lady staffs are appointed in the packing
section.
Freshers are appointed for office jobs. A probation period of six months is allowed to
new staffs. In the case of higher level employees probation is three months. Company provide
on the job training to the new staffs. After the completion of probation period they are appointed
as permanent staff on the basis of the supervisors report. Accommodation is provided for staffs
working in the milling section. Twenty four staffs are appointed by the agency on contract basis.
Their salary will be fixed by the agency.
Wages and Salary Administration
Salary of the office staff consists of basic pay and HRA. For marketing staff a certain
percentage of the sales turnover is given as commission. Workers are paid according to the wage
scale. Employees are promoted on the basis of their efficiency performance and seniority.
Company provides health, welfare, and safety measures to the employees.
Safety Measures
Company also takes initiative for the security of workers. Company providing cap and
mask for employees working in the milling section. In the case of accident full expense of that
employee should be made by the company.
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Disciplinary Actions
Seven days suspension for the violation of the company rules. A departmental enquiry
will be headed against the suspected person. And if he found guilty, he may be removed from the
service.
Welfare Benefits to the employees
Welfare Activities
The General Manager coordinates the welfare activities. The General Manager
coordinates the welfare activities. The company provides salary, bonus and provident fund
facilities to the employees. The company provides edictal allowances to the employees. Uniform
cloths and stitching charges are provided to all the workers. On the recommendation of the
doctor, leave with full wages will be given to the accident employees.
Leave, holidays are given as per the factory rules by government of Kerala. Salary issued
on second working day of every month according to the appointment letter given by thecompany.
Office time
The office time of MY FOOD ROLLER FLOUR FACTORY, is working under the
control of the General Manager. Office time for staff is from 8:30 am to 6:00 pm.
Production is done 24 hours and carried out through scheduled times.
The lunch break is from 1:00 pm to 1:30 pm.
There exist two shifts in the company for production.
First shift: 6 am to 6 pm
Second shift: 6 pm to 6 am
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Meeting schedule
Daily meeting are held at the company and it is held at General Manager Cabin. The
meeting of the company is from 9:10 am to 9:20 am. Members attending the meeting include a
General Manager, miller, office coordinator, and sales coordinator; go down supervisor and sales
manager.
Uniform and ID card
All the staff in the production, packing and loading department wears uniform specified
by the company. The company will issue two set of uniform at free of cost.
All the persons including Board of Directors, employees, contract labors should wear the
ID card before entering into the company.
Promotion Policy
Promotions are considered as an important motivational factor and it is very important in
an organization. The company follows the promotion policy based on merit basis.
MY FOOD ROLLER FLOUR FACTORY believes that training is an activity that an
organization must commit resource to training and development, exercise is universally accepted
to be important for achieving the competitive edge that is essential to remain on the forefront in
the long year. With the aim of meeting the future requirements of the organization, company is
giving external and internal training.
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List of employees in the organization
1. Office - General Manager
- Administrative Officer
- Office Coordinator
- Sales Coordinator
- Accountant
- Cashier
- Peon
- Sweeper
2. Marketing - Sales Manager
- Sales Representative
- Distributors
3. Transportation - Drivers
4. Milling - Miller (1)
- Roller man (2)
- Lab Assistant (1)
- Helpers (6)
- Washing Operators (2)
- Washing Helpers (2)
5. Factory - Factory Supervisor
- Production Supervisor
- Electrician- Fitter
- Go down Assistant
6. Packing Wing - Packing Workers (7)
7. Loading Workers - Workers(28)
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8. Security - 3
3.3 FINANCE DEPARTMENT
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General Manager
Assistant Manager
Finance Manager
Accounts Officer
Cashier
Clerical Staff
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FINANCE DEPARTMENT
The basic objective of financial management is the maintenance of liquid assets and
maximization of the profitability of the firm. Maintenance of the liquid assets means that the
firm has adequate cash in hand to meet its obligations and financial requirements. The duty of
Financial Manager is to prepare the budget and allocates the funds needed to meet the
requirements.
SOURCE OF FINANCE
1. Share Capital from NCDC 98.43 Lakhs
2. Term Loan 196.85 Lakhs
3. Working Capital from Mylapra Service
Co-operative Bank89.00 Lakhs
Total 384.28 Lakhs
COST OF THE PROJECT
Land 26.00 Lakhs
Building 70.66 Lakhs
Plant & Machinery 88.49 Lakhs
Miscellaneous Assets 74.33 Lakhs
Working Capital 89.00 Lakhs
Preliminary and pre-operative expenses 35.80 Lakhs
Total 384.28 Lakhs
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The Share Capital must be repaid to NCDC within 10 years in equal annual installment
and first such installment shall be paid at the end of the third year. The term loan shall be repaidwithin 10 years in equal quarterly installments of Rs. 5.47 Lakhs each and first such installment
shall be paid at the end of the 15th month from the commencement of the production.
The project requires a working capital of Rs. 89 Lakhs. Mylapra Service Co-operative
Bank is providing overdraft facility to the extent of 89 Lakhs. Interest at 16 percent shall be paid
on working capital. The working capital shall be repaid within 10 years in equal yearly
installment. The first such installment shall be paid at the 24 th month from the commencement of
the production.
PROFITABILITY AND FINANCIAL INDICATORS
The plant is expected to work in two shifts for 300 days a year. The production assumed
is 60 percent in the first year, 70 percent in the second year and 80% in the third year onwards.
First Year Rs. 1245.73 Lakhs
Second Year Rs. 1463.85 Lakhs
Third Year Rs. 1672.98 Lakhs
Raw material consumption constitutes little over 86.21 percent of the total
production cost
Cost of Raw Materials
First Year Rs. 1008 Lakhs
Second Year Rs. 1176 Lakhs
Third Year Rs. 1344 Lakhs
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Wages paid for the first three years are Rs.27.47 Lakhs, Rs. 30.16 Lakhs and Rs. 33.21
Lakhs. Electrical connected load on the unit is 380 KVA and hence MT tariff is applicable. DGset will supply 40 % of the required power during power cuts. The cost of the electric power is
estimated as Rs. 2.7 per unit and the cost of power using DG set is estimated as Rs. 3.50 per unit.
Requirement of water is 50 cubic meter per day.
Operating Profit for the first 3 years are given below
(Rs. In lakhs)
Year 1 Year 2 Year 3
Operating Result 44.79 84.72 125.88
Duties of the Finance Manager
Verification and printing of accounts.
Review of the general ledger and reconciliation.
Preparation of reconciliation statements such as bank, party accounts etc.
Ensure safe custody of cash.
Maintain proper records of fund register for the various loans availed from the bank or
financial institutions and outsiders and safe custody of the various documents executed
for the same.
Maintain the fixed asset register and ensure proper filing of the bills of purchases, sales,
installation, certificates etc for the tax purpose.
Ensure compliance of the various commitments for the borrowings and adhesive of the
repayment of the interest and the principal.
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Maintain registers for the bank guarantee issued by the organization.
Ensure the expiry dates of the bank guarantee and proper accounting of income.
Function of Financial Department
All financial transaction of the MY FOOD ROLLER FLOUR FACTORY is through the
finance department which is called Accounts Department. The financial year commence from 1
April and ends on 31 March. The major function of the financial department are financial
forecasting, checking up of financial performance and other function like maintaining main
ledger, cash book, bank book, sales and purchase ledger, audit files etc.
Cash Book
All receipts in the cash are entered in this register. The deposit of cash and withdrawal of
cash from bank are also entered in the computerized cash book.
Bank Book
All the transactions of the company are entered in the bank book. It gives details
regarding the receipts payment made, person to whom it is made and the title of the account
where the amount is debited or credited.
Purchase Journal and Purchase Ledger
All purchase bills are entered in this ledger which shows details regarding supplier
account, bill passed, payments made etc.
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Sales Journal and Sales Ledger
Sales transactions of all kinds are entered in this journal and separate invoice is prepared.
This record also shows details of waste materials.
Expense Ledger
It shows details of expenses incurred like general charges and welfare charges.
Suspense Ledger
Advance payments to employees, travelling expenses etc are entered in this ledger.
Sales Tax
Sales exceeding limit come under the provision of Sales Tax Act. Sales tax is of two
types:
1. KGST (Kerala Government Sales Tax)
2. CST (Central Government Sales Tax)
Audit File
Audit file is prepared at the end of every financial year and is certified by the auditor.
Auditing is done twice a year. The audit file contains Trial Balance, Profit and Loss account,
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Income and Expenditure account etc. The company has two external auditors for auditing the
accounts.
3.4 MARKETING DEPARTMENT
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General Manager
Deputy Manager
Marketing Manager
Sales Executive
Sales Coordinator
Clerical Staff
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MARKETING DEPARTMENT
The need of wheat products is increasing in todays life. In North India the majority of
the people use wheat and wheat products. In the South India too, remarkable changes in food
habits of the people have taken place during the last three or four decades. People prefer to have
chapatti, porotta, poor bread etc made of wheat products. Bakery industry consumes about 60
percent of Maida for making bread, biscuit and other bakery items. Diabetic patients always
prefer wheat products instead of using rise products.
Based on these facts and possibilities the marketing department is formulating their
strategies.
MARKETING STRATEGY
TARGET GROUP
The company is aiming to catch the entire Kerala market as its target group.
Pathanamthitta, Kollam, Idukki and Ernakulum will be concentrated using the penetration
strategy for marketing.
MARKETING CHANNEL
Company is marketing its products directly to the retailers and customers using their own
marketing personnel. The company has its own super market (Amrutha Super Market) at
Mylapra town. It has an added advantage of exploring the rural market through its primary co-
operative societies and Neethy store. The company also envisages a tie up with the public
distribution system of Kerala Government for marketing its products.
PRODUCT MIX
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Company proposes to have bulk packing of 50 kgs and 20 kgs, also small packing of 5
kgs, 2 kgs and 1 kg are included in the product mix for the benefit of the end use customers.
FUNCTION OF MARKETING DEPARTMENT
The marketing department concentrates on 4ps of marketing that is price, product, place
and promotion.
MARKETING DEPARTMENT
The marketing network of Amrutha is backed by strong sales support and service
network. Out of the factory it undergoes a strictly maintained supply schedule commendable
delivery system. Its own container vehicles supply directly from the factory to the traders,
presenting them with price levels that are kept fully consumer oriented and within very
reasonable limit. The product so Amrutha are famous in the market.
PRICING OF PRODUCT
Pricing is an important function of marketing department. Every company has its own
methods of pricing depending on product and service. Pricing has a vital rate in the success of
export marketing business. Amrutha fixed the price according to the quality of the products they
produce and the competition in the market.
The cost of product received from the costing department is the base of fixing the selling
price by the marketing department. While computing the price of the product in the market
various expenses like inspection, transport, bank commission, agents commission and all other
expense are to be considered. After considering all the direct and indirect expenses the marketing
department adds some percentage of profit filed by the board of directors. Sometimes the
company adjusts the rate of profit to capture the domestic market or to get more orders from the
buyer.
Since the company is planning to introduce penetration strategy for marketing its
products, the product will be priced with an attractive competitive price slightly less than
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prevailing price of its competitors in the market. Company is also able to change their price
strategy according to the market changes.
COMPANYS MARKETING AREAS
DOMESTIC MARKET
Amrutha has a good position in the Indian market. The domestic marketing of the
Amrutha products are through state wise and direct wise distributors. The company has its own
vehicle to distribute the products to different market. Comparing with other flours Amrutha playsa vital role in the domestic market.
CHANNELS OF DISTRIBUTION IN DOMESTIC MARKET
The various marketing channels used by the manufacturers for making the products
available to the consumers are given below.
Manufacturers Retailers Consumers
Manufactures Wholesalers Consumers
Manufactures Wholesalers Retailers Consumers
Manufactures Agent Wholesalers Retailers Consumers
A channel of distribution may be defined as an organized network of agencies and
institutions which in combination perform all the activities required to link producers with users
in order to accomplish the marketing task. The channel enables the sellers to find out the users
of its merchandise and helps the buyers to obtain the products he wants. Channels of distribution
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of particular root through which a product moves from the manufacture to the customer who
wants it and in the process title is also transformed to consumer.
PRIMARY TARGET OF MARKETING
AUDIENCE
MY FOOD FLOUR FACTORY aims its primary audience as
Stockiest
Distributor
Dealer
Institution
SECONDARY TARGET / END USERS
Upper middle class
Middle class
Bellow middle class
COMPETITOR ANALYSIS
Competitor analysis is done on the basic of SWOT [strength, weakness, opportunity and
threat].
MARKETING FUNCTION
The company has three types of marketing functions. They are as follows
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Functions of exchange
Functions of physical supply
Facilitating function
FUNCTION OF EXCHANGE
The main functions in this are buying and assembling and selling.
Buying and assembling:
It is the first steps in the process of marketing. It is done through directly or middlemen.
In this organization buying the raw materials from the northern states through railway valance.
Assembling starts after the goods have been purchased.
Selling:
The selling activity involves the tacking of problems such as advertising facing
competition creating demand for new products, conducting market research, and supply goods in
the right time and place.
FUNCTION OF PHYSICAL SUPPLY
Transportation:
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Here the product moves to the market through road transportation and shipment. This
transportation becomes easier now a day. The company has its own vehicles for this purpose.
Storage and warehouse:
For this concern a huge go down is made inside facto. The products are stored in the go
down and delivered according to the requirement.
FACILITATING FUNCTIONS
There are four types of facilitating functions. They are as follows:
1. Financing:
The money is essential for the function of each department. The fund is raised
from various sectors.
2. Risk Bearing:
Risks are involved at almost all stages in the process of marketing. Right from the
product policy, risk is possible due to reasons like changes in demand and supply
conditions, loss in storage and transportation and other natural hazards.
3. Standardization and Grading:
Standards are determined on the basis of weight, color, quality and other special
or specific features of a product.
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4. Marketing Information:
Adequate information is required for all levels of marketing.
PROMOTIONAL ACTIVITIES
The Medias used for the promotional activities are television, newspaper and magazines.
The brand ambassador of the product is Chippy (South Indian Cine Artist).
4.1 SWOT ANALYSIS
STRENGTH
MY FOOD ROLLER FLOUR FACTORY is under the management of Mylapra
service co-operative bank in the state.
The need for trade union does not arise as good relationship exists between
employees and management.
The modern machine has been installed in the factory, as a result the cost of
production is reduced to a greater extends and quality product can be manufactured.
Employees, the wealth of the business is highly skilled. As a result the production is
done in an effective and efficient manner.
It is a great achievement to the company that it has positioned fourth in the market
within a span of four years.
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As good relationship exists between employees and management the labour turnover
is very low.
WEAKNESS
The installed capacity of the factory is 80mt.The utilization is only 70mt of wheat per
day.
Location of the plant is a great problem to the company, as transportation cost
incurred is very high for raw material acquirement to the factory.
The factory is not situated in the industrial area.
Railway services are not available.
The promotional activities of the company are very less compared to other
competitors of the company.
High rate of absenteeism.
OPPURTUNITIES
Scope for mobilization of funds.
Adoption effective advertising media for wide coverage.
Creating new job opportunities.
THREATS
Shortage of raw materials due to some external factors like weather, tender problems.
Transportation problems.
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Competitors from other companies.(Annapurna, Farm Fresh)
FINDINGS
1. Current market leaders are Diamond, Pillsbury, Harvest, Farm Fresh, Anna Purna and
Supriya. These market positions are Elite holds 40%, Pillsbury holds 20%.
2. The company is providing good working environment.
3. The leading brands follow the distribution system.ie, Manufacture-distributor-wholesaler
retailer-customer.
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4. Most of the leading brands are given advertisement through TV, Radio and other popular
journals.
5. Company provides good safety measures and welfare activities to the employees.
6. The company is following a strict quality policy. This helps in producing good quality
products.
SUGGESTIONS
1. To capture the market all leading brands promotes their product through T.V, Radio and
other mediums. So Amrutha Atta should also take certain initiative to increase sales.
2. Educate customers about the advantage of whole wheat Atta over Plain Atta. If the
company gives proper awareness to the people, there will be a good sale in the future.
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3. Most of the consumers not aware of Amrutha products. By conducting exhibitions and
seminars company can create a positive impression on customers mind.
4. Whole wheat Atta has good customer preferences. So my company should try to improvethe quality and nutrition value of this system.
5. The company should sponsor some mega events to build corporate image.
6. Supplying diaries and calendars to distributors may motivate them and they feel
belongingness.
7. The company should retain its customers through social transactions.
CONCLUSION
In todays life competition exist in every sphere of activity. So it is very difficult for the
leading brands to maintain their position in the industry. It is the responsibility of the
management to co-ordinate the activities and leads the company towards the success. Especially
employee contribution is an unavoidable factor for the successful functioning of business. The
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importance of Atta industry is growing day by day. This is because most of the consumers are
changing their food habits from rice to wheat products. So this will be a developing industry and
its demand will also increase later.
During the study, I gathered information relating to Organizational structure, various
departments and their functions, products, quality policies, procedures and SWOT analysis of the
company. The study has certainly helped me to add one more dimension in many pursuits to
understand the management theories, principles and practices, and rejoicing on the fact that
AMRUTHA Atta, Rava and Maida have got a dominant presence in the State.
BIBILIOGRAPHY
1. Annual Report
2. Company Manual
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3. Kotler Philip Marketing management, 11th edition MC Grath Hills, New Delhi-2005
4. Research Methodology,2nd edition, Vishwa publications, Chennai, 1998
5. www.corporatebank.com/Mylapra.com