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A STUDY ON THE BUSINESS PRACTICES
INCAPRICORN FOOD PRODUCT
A SUMMER PROJECT REPORT
Submi tted by
NILAMATHI.RRegister Number: 1391026
In partial fulfil
ment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
in
DEPARTMENT OF MANAGEMENT STUDIES
SRI RAMAKRISHNA ENGINEERING COLLEGE
Coimbatore-641 022
AUGUST 2014
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SRI RAMAKRISHNA ENGINEERING COLLEGE
COIMBATORE-641 022
Department of Management Studies
A SUMMER PROJECT REPORT
AUGUST 2014
This is to certify that the project report entitled
A STUDY ON THE BUSINESS PRACTICES INCAPRICORN
FOOD PRODUCT
is the bonafide record of project work done by
NILAMATHI.R
Register Number: 1391026
of Department of Management Studies during the year 2013-2015
__________________ __________________________
Guide Director Management Studies
Submitted for the project Viva-Voce examination held on ______________
_______________ ________________
Internal Examiner External Examiner
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DECLARATION
I affirm that the Project titled A STUDY ON THE BUSINESS PRACTICES IN CAPRICORN
FOOD PRODUCTbeing submitted in partial fulfilment for the award of MBA is the original work
carried out by me. It has no tformed the part of any other project work submitted for award of any
degree or diploma,either in this or any other university.
NILAMATHI.R
1391026
I certify that the declaration made above by the candidate is true.
PROF.VANAJAAssociate Prof.
Department Of Management Studies
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ACKNOWLEDGEMENT
I am very thankful to the Management, Dr.A.Ebenezer Jeyakumar, Director (Academics) and
Dr.N.R.Alamelu, Principal of Sri Ramakrishna Engineering College for providing facilities to complete
the project work.
I express my immense gratitude to Dr.K.Chitra, Director, Department of Management Studies, and to
Prof.Vanaja, Associate Professor, Department of Management Studies, for her constant support to
undergo study in an extensive manner and her continuous encouragement and valuable guidance to
complete this project successfully.
I extend my sincere thanks to Mr.Vijaychanthakanth HR manager for rendering their whole hearted
support from the organization side for the successful completion of this project.
My heartfelt thanks to My Parents and My Friends who supported and encouraged me and made my
endeavours possible.
I also thank all who have helped me directly and indirectly in completing this project work.
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EXECUTIVE SUMMARY
This study is intended to help Capricorn decide upon the steps to be taken care for customer satisfaction
so that the growth of the company keeps on improving. Primary data have been used for analysis.
However, secondary source have yielded preliminary information.
Research conducted was descriptive in nature. Descriptive research helped me to develop the concept to
clearly establish priorities, to divulge adequate information which helps me indecision making and thus
essential for making the study a success.
A structured questionnaire was used to obtain required information and to assess the customer
satisfaction level and to find the ways through which the company can come up to the expectation of
customer so that the optimum satisfaction level can be achieved. I have used random sampling for my
survey. Care was taken that the respondents were as diversified as possible. A sample size of 30
respondents was taken from Krishnagiri. I collected data and analyzed them. I have critically analyzed
each and every question in the questionnaire and then given the managerial implication. This analyzed
data was later converted into bar diagrams for convenience. This also made it easy to draw a conclusion
based research and provide a presentable format for the report. Later on the information were compiled to
form a presentable report. Along with this I also learnt the Company operation of Capricorn. A better
strategy to satisfy customer is only the way to gain customer attention and to penetrate more in own
catchment area. Strategy must be in all area like Promotional offer/Scheme, Product Pricing, Employee
behavior, Billing Process, Product Assortment, Product quality in terms of RATER. It is found in the
research that customers are price sensitive hence Capricorn should give those offers which can facilitate
more money saving as the customers are price sensitive. Once the conservative thought would abolish,
definitely the retail will grow with leap and bound, ultimately it would benefit Capricorn.
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TABLE OF CONTENTS
Chapter No. Title Page No.
1 INTRODUCTION
1.1
History of Company
1.2Products and services
1.3 History of organisation
1.4Mission and vision
1.5
Organisation chart
1
1
3
4
5
6
2 MICRO AND MACRO ANALYSIS
2.1 Macro Economic Analysis Global Scenario
2.2Micro Economic Analysis- Indian Scenario
2.3 Swot Analysis
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12
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3 MARKETING DEPARTMENT
3.1 Marketing Initiatives Taken By Bank
3.2 Segmenting Targeting and Positioning
3.3 Marketing Mix
3.4 Competitors List
3.5 Complaints Handling3.6 Online Policy Manager
HUMAN RESOURCE DEPARTMENT
4.1 Responsibilities of Human Resource Department
4.2 Human Resource Planning
4.3 Performance Appraisal
4.3 Source of Recruitment
4.4 Training and Development
4.6Employee Benefit4.7 Motivation
4.8 Dispute and Resolution
4.9 Inspection
FINANCE DEPARTMENT
5.1 Finance Activities of Bank
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18
20
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2627
28
29
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30
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3233
34
36
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CHAPTER I
1 INRODUCTION:
The aim of this project is to study completely about the management and the industrys
present strategy they handle to achieve companys goal and to meet their competitors. This
summer project will be very much useful for us to understand present situation of the companys
and to develop ourselves. In this project we prefer to study fully about all the departments in the
company with the help of the employees working there.
ABOUT THE COMPANY:
Capricorn The company located at krishnagiri main road, kalkudapatti, krishnagiri district,
Tamilnadu. The company has been exploiting the potential of hygienic and high quality mango
pulp to the society. The initial period, a diminutive quantity of mango drink procured around the
villagers and sold the raw mango to various places of the district.
1.1 COMPANY PROFILE:
Name of the company: CAPRICORN FOOD PRODUCT INDIA LTD
Controlling authority: Corporation Office in Chennai.
Registered office:chennai
Anna nagar
Chennai-600089.
Telephone: 0091-44-32525000
Number of Plants: 12
Year started in Chennai: 1914
Shift Timings: I shift - 6.00 am to 2.00 p.m. II shift - 2.00 p.m. to 10.00 p.m. III shift -10.00
p.m. to 6.00am General Shift - 8.30 am to 12.30p.m / 1.30p.m to5.30 pm
Managing Director:
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Bankers: ICICI/ State Bank of India / Indian Bank
Insurance Company: National Insurance Company
Nature of industry: Food company
1.2 Product and Services :
Mango product and production of mango pulp to brought the mango from various place in
tamilnadu is an export oriented food processing company it manufacring tropical fruit pulp
Business locations:
Zonal offices: ANDRA HOUSUR ,BANGLORE, CHENNAI.
Stock offices:, Nagpur, Goa, Chennai, Bangalore, Dharwad, Lucknow, Trichy, , Ahmadabad,.
Sub-contracting units: CHENNAI ,TAMILNADU
MANGO PULP
TOMOTO PULP
GOA
FRUT FURESS PULP
1.3 HISTORY
Capricorn food product India ltd it was started 10 November , 2010 export oriented product
manufacring mango fruit pulp
Quality management system ISO 9001:2008 and Environmental management system ISO
14001:2004certified.
QUALITY:
Quality management system ISO 9001:2008 and Environmental management system ISO
14001:2004certified.
Certified FSSC 22000:2010 for The Food Safety Management Systems
Member of SGF-IRMA (European Quality Systems)
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Certified for Kosher by STAR KOSHER
Certified for Halal by JamiatUlama-E-Maharashtra
Certified by BRC for Global St
FACTORIES:
Factory 1, kalkudapatti, Krishnagiri district, Tamil NaduMango product
Factory 2Hosur krishsngiri district, Tamilnadu- mango pulp production line.
FACTORY 3 CHITTOR ,Andhra pradhesh
1.4 VISION AND MISSION:
1.4.1 VISION:It will enhance its world leadership in confectionary by creating value for people
through delightful and imaginative high quality products.
1.4.2 MISSION :
* To develop, manufacture and market high quality and innovative products for their consumers
through efficient use of their resources and in partnership with their customers.* To create a fulfilling workplace for their employees built on trust, mutual respect and
appreciation of their diversity.
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1.5 ORGANISATION CHAT
ORZAGATIOCHATI
MARKETING
DEAPARTMENT
PRODUCTION
DEAPARTMENTHR DEAPATMENT
FINANACE
DEAPARTMENT
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MICRO AND MACRO ANALYSIS
CHAPTER II
2 MICRO AND MACRO ANANALYSIS:
2.1 Environmental Factors:
Macro environment
1. Demographics
a) Age
Briefly, we can say that CAPRICORN mango drinks are popular among every age group.
This is because its delicious, nutritious, hygienic and the bestconfectionary product.
b) Socioeconomic status
Previously, people used to prefer maaza. The reason was that it used to be cheap, available in
large quantities and worth a compromise on quality for price. To target such people,
CAPRICORN came up with a 20 rupees economical CAPRICORN mango drink which is
within the affordability of every income group of Indian. With this introduction low income
people switched to CAPRICORN mango pulp provided them with high quality, nutrition, and
delicacy at a very reasonable price.
c) Location of residence
CAPRICORN Maaza is available everywhere right now. Where education and awareness
level is relatively high and people willingly go for the hygienic, nutritious and high quality
products irrespective
of their prices.
2. Economics Conditions
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a) Operations Restrictions
b) Labor Policies
c) Domestic Economic Problems
3. Social and Cultural Forces
First of all, we have to define what society is. Society is all about people in general, living in
communities. Then we have to know what culture is. Culture is basically the customs,
beliefs, way of life, and social organization of a particular country or group.
Now we have to see how and in what ways the cultural and social forces affect the marketing
of our chosen organization, CAPRICORN in India. The first aspect that will be brought
under consideration is:
Family
In a country like India , family plays a major role in the everyday life of an individual. .
Besides having it as an accessory of food, simple mango drink is also used as a raw material
for cooking, which is again a part of our tradition, our culture. CAPRICORN provides the
Indian families with all that they require purity, taste, hygiene everything in the
CAPRICORN products.
4. Political and Legal Forces
Political and legal forces also influence every companys conduct. Political and legal forces
on marketing would be categorized into:
a) Trade policy
Taxes (state and local taxes).. Increase in vans for transportation is thus an uncontrollable
factor and demands tax payments.
b) Quality Control
"We at CAPRICORN India Corporation Limited, endeavor to provide our products withappropriate quality at right time and at an affordable cost."
c) Open/close economy:
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Its an open economy facilitating foreign investments and allowing free trade.
5. Technology
CAPRICORN uses the term "clean technologies" to describe its working environment. This
term is defined as "manufacturing processes or product technologies that reduce pollution or
waste, energy use, or material use in comparison to the technologies that they replace."
Microenvironment
1. Market
In marketing, the term market refers to the group of consumers or organizations that is
interested in the product, has the resources to purchase the product, and is permitted by the
law and other regulations to acquire the product.
In marketing any given good or service, three specific factors need to be considered:
People or organizations with needs,
Their purchasing power, and
Their buying behavior
2. Suppliers
The people or firms that supply the goods or services required by a producer to make what it
sells and also the firms that provide the merchandise, a wholesaler or retailer resells are the
suppliers and are a vital part of a firms marketing success.
3. Marketing Intermediaries
Marketing intermediaries are independent business organizations that directly aid in the flow
of goods and services between a marketing organization and its markets.
There are two types of intermediaries:
a) Middlemen, wholesalers and retailers
As for CAPRICORN confectionary wholesalers are given license (i.e. those with best
chillers).However middlemen are less involved because it mostly done by their self owned
departments.
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b) Channels of distribution
They operate between a company and its markets and between a company and its suppliers.
These are the facilitating organizations that provide services such as transportation,
warehousing, and financing that are needed to complete exchanges between buyers and
sellers.
2.3 SWOT ANALYSIS:
STRENGTH:
1. Good brand position and quality which is consumer favorites.
2. Strong partnership with retailers.
3. Stores are available in almost every market.
4. The shareholders have limited responsibility with regard to the debts or trials against the
corporation.
5. Corporations can obtain more capital through the sale of their actions.
6. A corporation can deduct the cost of benefits (benefits package) that offers to its managers and
employees.
WEAKNESS:
2. Packing is not attractive
3. The process of integration requires more time and money to compare to other models of
organization.
4. The corporations are supervised and subject to rules of entities: federal, state and some local,
and therefore might have to comply with many more requirements and administrative documents
to demonstrate compliance.
OPPORTUNITIES:
1. Increase personal relation in village.
2. Increase product range .
3. As the harbor is near, can export the products by increase quality and range to the small
continue.
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THREATS:
1. Highly qualified employees in big brand.
2. Huge investment on advertisement by other brands.
FUNCTIONAL AREAS
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3.1 MARKETING MANAGEMENT
3.1.1 Product/Service:A price competitive edge while the distribution strategies will ensure that the products
reach the final consumers.
3.1.2 Product Segmenting, Targeting and
Positioning:-
SEGMENT
People looking to have
Maaza
slice
fruit
TARGET
Lower
Middle and
Upper middle class
POSITIONING
Positioned as a brand
Tasty
3.1.3 Marketing Mix
Products:
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Product description
This marketing strategy will be offering a particular product in the market. It is
specifically offering white soft drinks in the Indian market. The main brand that is to beintroduced in the market is Capricorn soft drinks which is mainly targeted for the youth andchildrens. The product will be offered in 300 ml bottel, 500 ml 700 ml and 1 ltrbottel. The
co-brands are lacto king, Capricorn maaza, slice ,fruit . These will be the most important sized
packages that the product will be sold in. it will be sold in whole sale and retail.
Pricing strategies
Since the product is being offered for the first time in the market, the company will useprice penetration strategy where it will use low prices strategy to penetrate the market. However
this will be combined with cost plus pricing since it will have to operate at a profit market.
However the initial price set up will be based on the low prices to penetrate the market. Theproduct Capricorn maaza will be offered at Rupee 20 , slice 10rs and the products from the
price of mango drinks.
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Place (Physical Distribution)
LOCATION:
Companies now days are shifting base to lower cost of production which make sense .Production
base in cities or metros have become non-viable as cost of living , cost of raw material ,overhead
cost and transportation cost have gone above the roof . Companies are moving to low cost areas
locally companies have shut operation in DELHI , MUMBAI , CHENNAI , KOLKATA and
moved to areas like UTTARAKAND , JHARKHAND , JAIPUR , BADI , etc..
Business locations:
Zonal offices: Delhi, Kolkata, Mumbai, Chennai
Stock offices: krishsnskiri-tamilanadu,banglore- Karnataka,chittorAndra pradesh
Subcotact :chittorAndra,Banglore - karnataka
contracting units: chennai
Promotion:
Advertisement
Centralized Distribution
Centre
Chennai
Andhra
PradeshKarnataka
Maharastra
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Presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertisement will be provided on TVs, Billboards, catalogs, posters, banner ads.
Personal Selling
A process of helping and persuading one or more prospects to purchase a good or
service or to act on any idea through the use of an oral presentation. Sales presentations,sales meetings, sales training samples. These are the personal selling is been done inCapricorn.
Personal Selling
Paid intimate stimulation of supply for a product, service, or business unit by planting
significant news about it or a favorable presentation of it in the media.
3.1.4 Distribution Channel:-Manufactures normally use intermediaries for talking their products to the users. The
intermediaries bear a variety of names. All such intermediaries constitute the marketing channel.The manufacturers branch offices, depots, warehouses and showrooms too form a part of the
marketing channel. Where institutional channels like chain stores, super markets, etc. are used bythe firm, they too form part of the marketing channel .
Type of marketing intermediaries:-
C&F agents (CFAs)
Stockiest/distributor/whole seller
Semi-whole seller
Retailer/dealer
In coverage Capricorn being covered not all over Orissa, it covers seventy percent of total
state. the company target to cover the total state very soon. Instead of all these company is on
growing stage. Total sale is comparatively appreciative.
Distribution chart
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3.1.5 Competitors List:
Capricorn competes with other packaged foods companies as well as store brands from
retailers Capricorns major competitors are:
CompanysCompetitive Advantage
Competitive Advantages(current)
Innovation is at the heart of creating brands people love. Capricorn investment intechnology of taste, flavor, packaging, process development and nutrition has never been greater.
Scale of production
Distribution channel Loyal base of customers
Competitive Advantages(tobedeveloped)
Segmentation on the basis of income of the people in terms of branding
Packaging
Availability in the rural areas
Manufacture CFA Whole sellers Retailers Customers
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3.2.6 Market Strategy:-
Segmentation:
Market segmentation is one of the steps that go into defining and targeting specific markets. It is
the process of dividing a market into a distinct group of buyers that require different products or
marketing mixes.
Demographical bases (age, life cycle, occupation, income)
Geographical bases (states, regions, countries)
Behavior bases (product knowledge, usage, brand loyalty)
Target Marketing:
Target Marketing involves concentrating your marketing efforts on one or a few key segments.
Target marketing can be the key to a businesss success.
The beauty of target marketing is that it makes the promotion, pricing and distribution of your
products and/or services easier and more cost-effective.
Cost Leadership (Undifferentiated or Mass) Strategy
Differentiation Strategy
Segmentation Strategy
Positioning:
Positioning can be defined as how your target market defines you in relation to your competitors.
A good position makes the product unique and is considered a benefit by the target market.
Product should be unique.
Product has to be beneficial
Affordable price
Quality packaging
3.1.7 CRM in customer contact centers
CRM systems are customer relationship management platforms. It is a platform for
progressing the payments and other related query management.
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3. Production and Operation:
3.2.1 Manufacturing Facility of CAPRICORN:
A state of the art manufacturing plant is at chennai. CAPRICORN India's manufacturing
facility is located at banglore , which is in the southern part of India. The factory is housed in
Buildings constructed .; but refurnished inside to accommodate the state of the art equipment.
Apart from having the own factory at Krishnagiri, CAPRICORN India also has dedicated Sub-
Contracting in units at Andra, Chennai. All the products are manufactured under the most
hygienic conditions. Great care is exercised in the selection and quality control of Raw Materials
and packing materials. Rigid quality controls are implemented at every stage of production
process. Every batch of production is checked thoroughly using modern equipment.
The factory at chennaii has been awarded with ISO 14001:1996 and HACCP awards by BVQI.
3.2.2 Quality policy
HACCP:
Food Safety Management System -
Hazard Analysis Critical Control Point (HACCP) is a preventive system of food
control. It involves examining and analyzing every stage of a food-related operation to identify
and asses hazards; determining the 'critical control points' at which action is required to controlthe identified hazards; establishing the critical limits that must be met at, and procedures to
monitor, each critical control point; establishing corrective procedures when a deviation is
identified by monitoring; documentation of the HACCP plan and verification procedures to
establish that it is working correctly.
HACCP Policy
We are committed to provide safe products to our customers at all times, we shall strive to
achieve this through,
Practicing Systems & Procedures as per HACCP requirements.
Implement Control measures to ensure that the products are free from physical, Chemicaland Microbiological hazards.
Continuous improvements through training activities.
Adherence to Good Manufacturing practices and Good Hygiene Practices.
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Quality Policy
We at CAPRICORN India Corporation Limited, Endeavour to provide our products with
appropriate quality at right time and at an affordable cost
Towards this we would -
Continually improve our products and processes.
Educate, train and develop all our employees for enhancing their skills, knowledge andquality of work life.
Provide safe products to our customers.
Adhere to good manufacturing practices.
ISO 9001:2000 specifies the requirements for a quality management system where an
organization:
Needs to demonstrate its ability to consistently provide product that meets customer and
applicable regulatory requirements, and
Aims to enhance customer satisfaction through the effective application of the system,including processes for continual improvement of the system and the assurance of
conformity to customer and applicable requirements.
It is now the only standard in the ISO 9000 family against whose requirements the quality
system will be certified by an external agency. The ISO 9001:2000 certification signifies
a global benchmark in customer satisfaction, product quality and leads to significant
reduction in defects levels. The standard recognizes that the word product applies toservices, processed material, hardware and software intended for or required but the
EVIRONMENTAL POLICY:
Environmental Management Systems -
ISO 140v 01:1996
Environmental management is a tool designed to assist an organization to remain in touch
with the environmental interactions and consequential impacts of its activities and products. It
provides the organization with programs and procedures to achieve due diligence in meeting
regulatory requirements. Its also promotes continual improvement performance.
An environmental management system is essentially a management framework to ensure
you evaluate how your business impacts the environment, know what impacts are significant,
and processes in place to minimize the significant environmental impact.
The basic element of our environmental management system is enabling our organization
to:
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Establish an appropriate environmental policy;
Identify its most significant environmental impacts;
Identify relevant legislative, regulatory and industry specific requirements; set appropriate environmental objectives and targets;
Establish programs to implement the environmental policy and achieve objectives and
targets, and; Continuously improve the environmental performance through improvement of the EMS.
Organizations can experience a number of benefits from implementing an effective
environmental management system, such as:
Preventive of pollution.
Reduction of consumption of materials and energy.
Limited liability by providing evidence of due diligence. Improved access to capital.
Improved industry/government relations.
May reduce insurance costs.
Improved public relations.
Our Environmental Policy:
We are committed to the society we live in and it is our endeavour to improve continually
the environment around by -
Ensuring Zero discharge of effluents and developing a green belt to improve our
environment.
Adhering to the emission norms to protect the quality of ambient air. Focusing on conservation of energy and seeking opportunities for using alternative and
renewable energy sources.
Imparting awareness on the need for environmental protection to the people in theneighbor hood.
Adhering to all statutory and regulatory requirements.
DISTRIBUTION NETWORK OF CAPRICORN INDIA CORPORATION:
Transportation investments often have direct effects on the spatial distribution of a
region or country's population and economic activity. Improved access to employment centres,decreases in the travel time of trips and changes in the distribution of economic centresaffect
the location decisions of people and businesses.
FACTORIES:
krishns
giriHosur Andra Maharastra Banglore chennai
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Plant LocationOur manufacturing unit will be located at 4/111, Anna Nagar, High road, Manapakkam,
Chennai-600089.
To export our product we use the Central Government transport facility named as Inland
Container Depot which is located at Andra.
La our is easily available since there are many such labour contractor available andra
UP. We will get skilled and unskilled labour as per our need. Technical people are alsoavailable easily to monitor the quality and consistency of our product.
3.2.3 Plant Layout
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3.2.4 Lean manufacturing:
Lean production, often simply, "lean", is a production practice that considers the
expenditure of resources for any goal other than the creation ofvaluefor the end customer to be
wasteful, and thus a target for elimination. Working from the perspective of the customer who
consumes a product or service, "value" is defined as any action or process that a customer wouldbe willing to pay for.
Lean production, aims to reduce waste. Waste is looked at in terms of time, money and
quantity of resources used in production. Reducing these elements aims to increase productivity
and efficiency.
Benefits of Lean Manufacturing
CAPRICORN uses lean production techniques to bring benefits other than gains to
efficiency and quality. It also helps to create social and environmental benefits. Social benefits
are those shared by the communities in which Nestl operates.
Kaizen
Kaizen is another idea developed in Japan. It supports lean production by introducing the
idea of continuous improvement. Kaizen is a concept that makes improvement the responsibility
of everyone involved in production. Improving efficiency becomes a continuous process, not a
one-off activity. Kaizen implies that even the smallest improvement should be made, as many
small improvements can lead to big savings.
Elimination of Waste
Value refers to the aspects of a product that customers think it is worth paying for. Addedvalue refers to activities or processes that make the product better or worth more. Value can be
added through changes to design or changes to the way a product functions or behaves. Value
can also be added by reducing waste which in turn reduces production costs. Any activity which
puts cost on a product without adding value is waste. Waste can happen at any part of theprocess. Muda is the Japanese term for waste. Muda is broken down into the seven areas that
make up the mnemonic TIMWOOD. (Transport, Inventory, Motion, Waiting time, Over-
Processing, Over-Production, Defects)
3.2.5 Details of machinery and sources of machineries
The product will be manufactured by Full Automatic mango Production Line
(QH200), with this system, baking the moulds, depositing, forming etc. series procedure can
be achieved automatically.
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the growth of the small batch craft chocolate "industry" here in the India. Furthermore, we think
that at that price point it will be necessary to produce at least 1 ton per month of finished
chocolate in order to be able to break even.
Capacity utilization
The maximum production capacity of our plant would be 400 TONES/day and wewill try to utilize optimize resources and our capacity of utilization is 300TONES/day.
Raw Material Sourcing:
1. MANGO
2. MANGO PULP POWDER
3. SUGER
.
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3.3 Financial Department
Financial Management is a operational activity of business i.e., responsibility for obtaining thefund & effective utilizing the fund for effective operation that is called financial management
Definition Of Financial Statement Analysis:
The process of reviewing and evaluating a company's financial statements (such as
the balance sheet or profit and loss statement), thereby gaining an understanding of the financialhealth of the company and enabling more effective decision making. Financial statements recordfinancial data; however, this information must be evaluated through financial statement analysis
to become more useful to investors, shareholders, managers and other interested parties.
Finance Department Chart of Capricorn India Corporation Limited
3.3.1 Book of accounts
The financial statements are prepared and presented in accordance with Indian Generally
Accepted Accounting Principles (GAAP) under historical cost convention on accrual basis.
GAAP comprises of accounting standards notified by the Central Government of India under
Section 211(3C) of the Companies Act, 1956, other pronouncements of the Institute of CharteredAccountants of India and the provision of Companies Act, 1956, to the extent applicable. The
accounting policies have been uniformly applied by the Company and are consistent with those
used in the previous year.
3.3.2 Share Price of the company:
95,60,021 equity shares of Rs.10/- each
94, 79,788 (99.16%) equity shares have been dematerialized as on December 31, 2013.
Capital Budgeting:
HEAD FINANCE
FINANCE MANAGER
EXECUTIVE
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Capital budgeting is the technique of making decision for investment in long term
proposals. It is a process of deciding whether or not to invest the funds in a particular proposal,the benefit of which will be available over a period of time longer than one year.
.
3.3.3 Capital Structure:
3.3.4 Deprecation Method:
Depreciation is provided on the straight line method at the rates of depreciationprescribed in Schedule XIV to the Companies Act, 1956. If the managements estimate of the
useful life of a tangible fixed asset at the time of acquisition of the asset or of the remaining
useful life on a subsequent review is shorter than that envisaged in the aforesaid Schedule,
depreciation is provided at a higher rate based on the managements estimate of the useful life /remaining useful life. Pursuant to this policy, based on the estimated useful life of the assets,
depreciation is provided in respect of certain assets at the rates which are higher than the
corresponding rates prescribed in Schedule XIV to the Companies Act, 1956. The
Estimated useful life of various tangible fixed assets is as under:
Description Estimated useful life (in years)
Building 28
Plant and machinery 5 - 13
Computer and accessories 5
Furnitures and fixtures 5 - 10 Office equipments 5 - 10
Vehicles 5All tangible fixed assets individually costing Rs. 5,000 or less are fully depreciated in
the year of purchase.Leasehold improvements are amortized on a straight line basis over the useful
remaining useful life of the asset or the lease period whichever is lower.
Type of CapitalInvestment
Capital Investment inPhysical Assets
Land , Building,Machinery, Vehicle,
Computer
Capital investment inmonetory Assets
Cash, Bank.
Capital investment in IntangibleAssets
R&D, T&D,
MKT Development
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3.3.5 Financial Statements
Particulars Dec '12 Dec '11 Dec '10 Mar '10 Mar '09
Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share -- -- -- -- --Operating Profit Per Share (Rs) 21.77 21.09 9.71 23.95 15.46
Net Operating Profit Per Share (Rs) 313.26 285.16 172.94 500.81 453.59
Free Reserves Per Share (Rs) -- -- -- -- 84.03
Bonus in Equity Capital 1.62 1.62 1.62 4.10 4.10
Profitability Ratios
Operating Profit Margin (%) 6.95 7.39 5.61 4.78 3.40
Profit Before Interest And Tax Margin(%)
1.76 1.09 -0.14 2.31 0.30
Gross Profit Margin (%) 1.78 1.10 -0.14 2.32 0.30
Cash Profit Margin (%) 7.31 7.97 2.01 3.78 1.84
Adjusted Cash Margin (%) 7.31 7.97 2.01 3.78 1.84Net Profit Margin (%) 2.20 1.75 -3.71 1.34 -1.24
Adjusted Net Profit Margin (%) 2.20 1.75 -3.71 1.34 -1.24
Return On Capital Employed (%) 1.86 1.39 0.15 12.16 2.00
Return On Net Worth (%) 1.47 1.08 -1.40 5.96 -5.33
Adjusted Return on Net Worth (%) 1.47 1.08 -1.40 5.96 -5.35
Return on Assets Excluding
Revaluations
472.74 465.77 460.70 113.08 106.34
Return on Assets Including
Revaluations
472.74 465.77 460.70 113.08 106.34
Return on Long Term Funds(%) 1.86 1.39 0.15 12.16 2.01
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Liquidity And Solvency Ratios
Current Ratio 1.67 2.00 1.99 0.81 0.72
Quick Ratio 1.17 1.20 1.25 0.38 0.30
Debt Equity Ratio -- -- -- -- 0.01
Long Term Debt Equity Ratio -- -- -- -- --
Debt Coverage Ratios
Interest Cover 183.80 82.68 5.99 29.38 0.24
Total Debt to Owners Fund -- -- -- -- 0.01
Financial Charges Coverage Ratio 521.63 310.34 90.37 55.65 1.73
Financial Charges Coverage Ratio
Post Tax
484.33 293.01 30.67 41.66 1.89
Management Efficiency RatiosInventory Turnover Ratio 9.59 7.46 6.02 9.45 9.53
Debtors Turnover Ratio 34.06 44.17 39.32 51.72 49.72
Investments Turnover Ratio 9.59 7.46 6.02 9.45 9.53
Fixed Assets Turnover Ratio 0.62 0.57 0.34 1.48 1.36
Total Assets Turnover Ratio 0.67 0.61 0.38 4.43 4.41
Asset Turnover Ratio 0.67 0.62 0.69 0.79 2.90
Average Raw Material Holding -- -- -- -- 29.76
Average Finished Goods Held -- -- -- -- 29.77
Number of Days In Working Capital 53.73 63.55 63.56 -22.64 -38.10
Profit & Loss Account Ratios
Material Cost Composition 53.87 58.33 57.57 67.13 61.75
Imported Composition of RawMaterials Consumed
0.71 1.25 9.26 0.60 0.77
Selling Distribution Cost Composition 5.84 5.75 6.59 -- 17.19
Expenses as Composition of Total 1.57 1.32 0.69 0.91 0.68
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Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit -- -- -- -- --
Dividend Payout Ratio Cash Profit -- -- -- -- --
Earning Retention Ratio 100.00 100.00 -- 100.00 --
Cash Earning Retention Ratio 100.00 100.00 100.00 100.00 100.00
Adjusted Cash Flow Times -- -- -- -- 0.11
Dec '12 Dec '11 Dec '10 Mar '10 Mar '09
Earnings Per Share 6.97 5.07 -6.46 6.74 -5.68
Book Value 472.74 465.77 460.70 113.08 106.34
Balance Sheet of the Company:
Particulars Dec
'12
Dec '11 Dec '10 Mar '10 Mar '09
Sources Of Funds
Total Share Capital 9.56 9.56 9.56 3.77 3.77
Equity Share Capital 9.56 9.56 9.56 3.77 3.77
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 442.38 435.72 430.87 38.88 36.33
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net worth 451.94 445.28 440.43 42.65 40.10
Secured Loans 0.00 0.00 0.00 0.00 0.00
Unsecured Loans 0.00 0.00 0.00 0.00 0.34
Total Debt 0.00 0.00 0.00 0.00 0.34
Total Liabilities 451.94 445.28 440.43 42.65 40.44
Particulars Dec
'12
Dec '11 Dec '10 Mar '10 Mar '09
Application Of Funds
Gross Block 481.38 479.43 483.90 127.67 127.46
Less: Accum. Depreciation 106.16 90.70 82.65 73.15 69.68
Net Block 375.22 388.73 401.25 54.52 57.78
Capital Work in Progress 32.03 8.42 0.27 0.01 0.77
Investments 0.00 0.00 0.00 0.00 0.00
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Inventories 33.30 38.69 28.90 20.84 20.10
Sundry Debtors 10.07 7.51 4.83 3.58 3.73
Cash and Bank Balance 43.25 37.46 30.58 15.10 6.17
Total Current Assets 86.62 83.66 64.31 39.52 30.00
Loans and Advances 24.82 12.48 13.95 11.81 18.25
Fixed Deposits 0.00 0.00 0.00 0.00 0.07Total CA, Loans & Advances 111.44 96.14 78.26 51.33 48.32
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 55.71 47.50 38.62 62.33 60.45
Provisions 11.04 0.52 0.73 0.88 5.98
Total CL & Provisions 66.75 48.02 39.35 63.21 66.43
Net Current Assets 44.69 48.12 38.91 -11.88 -18.11
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 451.94 445.27 440.43 42.65 40.44
Contingent Liabilities 5.43 23.68 151,420.00 2.22 1.51
Book Value (Rs) 472.74 465.77 460.70 113.08 106.34
Capital Structure:
Capricorn India Corporation
Capital Structure
Period Instrument --- CAPITAL (Rs. cr) --- - P A I D U P -
From To Authorized Issued Shares (nos) Face Value Capital
2012 2012 Equity Share 370 9.56 9560021 10 9.56
2011 2011 Equity Share 370 9.56 9560021 10 9.56
2010 2010 Equity Share 370 9.56 9560021 10 9.56
2009 2010 Equity Share 10 3.77 3771289 10 3.77
2008 2009 Equity Share 10 3.77 3771289 10 3.77
Profit & Loss of the Organization:
Capricorn India CorporationParticulars Dec
'12
Dec '11 Dec '10 Mar '10 Mar '09
Income
Sales Turnover 319.54 288.74 173.86 197.03 183.52
Excise Duty 20.06 16.12 8.53 8.16 12.46
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Taxation
a)
Minimum alternate Tax: not applicable for domestic exportb) Registration of Central Excisec) Registration of Sales Tax
d) Registration of The Income Tax Act 1961 (PAN No.)
Equity Dividend 0.00 0.00 0.00 0.00 0.00
Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00
Per share data (annualized)
Shares in issue (lakhs) 95.60 95.60 95.60 37.71 37.71
Earning Per Share (Rs) 6.97 5.07 -6.46 6.74 -5.68
Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) 472.74 465.77 460.70 113.08 106.34
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3.4 HUMAN RESOURCE
3.4.1 Objectives of Human Resource Department
To define the process to ensure adequate control over hr policies /procedure document in
computerized mode.
Procedure
Distribution list for the hr manual is prepare maintained and updated by the corporate
administration executive.
Policies and procedure are identified with latest revision and date in the distribution list.
3.4.2 Recruitment
RIGHT PERSON IN THE RIGHT JOB
It is the policy of the company to employ always the best suited person for all its man power
needs. The process selection will therefore be on the basis of merit, ability, competence,
experience and potential.
Sources of Recruitment
Candidates already placed on wait list following an interview
Internal candidates
Existing data bank
Approved recruitment consultants
News paper advertisement
Internet based recruitment
Campus interview
Employee reference.
RECRUITMENT PROCESS:
Source of manpower
Short list of application
Interview call letters
Interview
Issue of offer letter and pre employment medical examination
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No contribution (E)
Employee is not focused on the objectives and in fact has a negative impact on the
companys objective.
3.4.4 Welfare Benefits:
1. Long service award
2. Annual medical check up
3. Hospitalization expenses for dependent parents
4. Group personal accident policy
5. Marriage Gift
6. Funeral expenses & Death Relief
Long Service Award
To recognize and appreciate management staff who have served in the company for 20
, 25, 30 and 35 years.
Complete year of service Award
2025
30
35
150 aseptic package250 aseptic package
375 aseptic package
500 aseptic package
Annual medical check up
The facility of a comprehensive medical checkup by a competent nominated hospital or
diagnostic center to all management staff and their spouse.
A. Below 40 yearsonce in a 2 years.
B. 40 years and aboveevery year.
Tests
Hemoglobin P.C.V
R.B.C
MHV, MCV, MCH
Total W.B.C
Platelet count
Differential count
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E.S.R
Blood grouping / Rh typing
Complete urine Analysis
E.C.G (Resting)
Hospitalization expenses for dependent parents
Employees who have a need to avail of this benefit to cover hospitalization
expenditure for dependent parents, shall apply to corporate HR head with the bills, records etc.
The amount extended is an interest free loan which shall be recovered in 36 months ins talents.
Group personal accident policy
Medical expenses incurred consequently to the injury/accident will be reimbursed
under personal accident policy.
Description of injury Extent of injury
1. Death only
2. Loss of two limb, two eyes or one limband one eye
3. Loss of two limb, two eyes
4.
Permanent total disablement
100% of CSI
100% of CSI
50% of CSI
100% of CSI
Marriage gift
The company shall buy a gift cheque for Rs. 1001/- and present it to the employee on
the day of his/her marriage.
Terminal benefit
Provident fund
Superannuation
Gratuity
Retrial benefits
Provident fund
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The various benefits admissible under the provident fund are of the following type:
a) Nonfundable loan towards Housing, Sickness, Marriage/Education, Natural calamities,
etc..,
b) Lump sum payment in full and final settlement of the provident fund account.
Superannuation
The Superannuation scheme covers all executives borne on the probationary confirmed
rolls of the company.
Retirement on normal pension date
Retirement after normal pension date
Retirement before normal pension date
Death while in service Resignation/cessation of service
Gratuity
Gratuity is payable all executives who join in the probationary/confirmed role of the
company and have completed five years of service under normal circumstances or below five
year ink the case of death or retirement due to physical /mental infirmities.
Retirement
This policy shall apply to all employees (excluding work men retiring from the serviceof the company)
a) Retirement souvenir
b) Exgratia
c) Leave encashment
3.4.5 LEAVE
Types of leave
Earned leave
Casual leave
Sick leave
Maternity leave
Advance leave
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CHAPTER V
LEARNINGS
1.Time Management
Time Management should be followed each and every production department people .it
improve higher production and good will.
2.other Learnings
Even in the company working other state employee even they treated like very equally as our
state employees by all higher managers.
FINDING AND ANALYSIS
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FINDING AND ANALYSIS:
Gender
TABLE :1 Gender
INTERPRETATION ;
Most of that womens are preparing the soft drinks more the men.
60%
40%
Respondent
male female
Gender Respondent Percentage%
Male 18 60
Female 12 40
Total 30 100
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AGE
AGE Respondent Percentaage%
15to18 8 27
18 T0 25 10 33
25TO 30 7 23
ABOVE35 5 17
Total 30 100
Table 1.2 Age
INTERPRETATION ;
Mostly preparing the soft drink age group between 18 to 25.
27%
33%
23%
17%
Respondent15to18 18 T0 25 25TO 30 ABOVE35
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Education Qualification
SSLC 5
12 7
UG 8
PG 7
OTHER 3
TOTAL 30
Table 1.3 education Qualification
5
7
8
7
3
SSLC 12 UG PG OTHER
RESPONDENCE
RESPONDECE
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Monthly Income
Monthly income Respondents Percentage%
5000 to 10000 7 23
10000 to 20000 10 33
20000 to 50000 8 27
above 50000 5 17
Total 30 100
Table 1.4 Monthly income
INTERPRETATION ;
Most of that preparing the soft drinks theirs monthly income 10000 to 20000.
23%
33%
27%
17%
Respondents
5000 to 10000
10000 to 20000
20000 to 50000
above 50000
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Which soft drink consume :
soft drink Respondent Percentages %
coco drink 10 33
Orange drink 5 17
lemon drink 7 23
mango drink 8 27
total 30 100
Table 1.6 which soft drinks prepared to buy
INTERPRETATION ;
Most of the people to preparing the coco drinks more then other.
33%
17%23%
27%
coco dring orangedrink lemon drink mango drink
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Mango drink
mango drink Respondent Percentage%
brand 8 27
taste 15 50offer 7 23
total 30 100
Table 1.7 Mango drinks
INTERPRETATION ;
Most of the people to like and have a soft drinks only taste .
27%
50%
23%
Respondents
brand taste offer
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Quantity
Quantity Respondents Percentage%
200ml 9 30
300ml 5 16
500ml 8 27
1 ltr 5 17
2 ltr 3 10
Total 30 100
Table 1.8 Quantity
INTERPRETATION ;
Most the respondent they like to buy a soft drinks in 300 ml bottle .
30%
16%27%
17%
10%
Respondents
200ml 300ml 500ml 1 ltr 2 ltr
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purchase
purchase Respondents percentage %
super market 8 27
Retail shops 7 23
bakery 8 27
other 7 23
total 30 100
Table 1.10 purchase
INTERPRETATION ;
More Respondents they are buying the soft drinks through super markets .
27%
23%27%
23%
Respondentssuper market Retail shops bakery other
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buying pattern:
buying pattern Respondents Percentage%
occasions 10 33
festival 5 17
offers 5 17
no specify pattern 10 33
total 30 100
Table 2 Buying pattern
INTERPRETATION ;
Most of the Respondents are buying the soft drinks occasion .
Attracting add
Attracting add Respondents percentage %
33%
17%17%
33%
Respondents
occasions
festival
offers
no specify pattern
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Minut maid pulpy orange 5 17
Minut maid mixed fruit 6 20
Maaza 9 30
Slice 7 23
Fruiti 3 10Total 30 100
Table 2.1 Attracting add
INTERPRETATION ;
Most of the Respondent they are attracting by the adds .
17%
20%
30%
23%
10%
Respondents
Minut maid pulpy orange
minut maid mixed fruit
Maaza
slice
Froti
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Consumer perception on Mango soft Drinks
Questionnaires
DEMOGRPHIC DETAILS
1.Age (in years)
1) 15to 18 2) 18 to 25 3) 25 to 35 4) Above 35
2.Gender
1) Male 2) Female
3.Education qualification
1) 10 2) 12 3) UG 4) PG 5) other
4. Monthly income (in Rs)
1)5000 to 10,000 b) 10,000 to 20,000 3)20,000 to 50,000 4) above 50,000
1.How frequently do you consume soft drink?
1) once in a day 2 Twice a day 3) 3 to4 times a week 4) occasionally
2.Which of the following soft drink do you consume ?
1) coco drinks 2) orange drinks 3) Lemon drinks 4) Mango drinks
3.What do you look for when do buy a mango drink?
1) Brand 2)Taste 3)offer
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4.How much quantity do you purchase for the particular occasion ?
1)2oo ml 2)300ml 3)500 ml 4)1 ltr 5)1.5 ltr 6) 2 ltr
5.please specify to sources to awareness for the mango soft drink?
1) Tv add 2 )Ratio 3) Magazines 4) Trough friends
6.Where do you purchase the soft drink ?
1) super markets 2) Retail shops 4) Bakery 5) others
7.What is your view on taste of all the soft drink product?
Very good Good Neutral Bad Very bad
Coco cola
Fanta
Maaza
sprite
Tumpsup
Limca
Minute maid pulpy
orangeMinute maid mixed
fruit
slice
8.Specify your buying Patten?
1) occasions 2) festival 3) offers 4) No specify Patten
9.How do you view the price of soft drinks product?
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