INTRODUCTION

INTRODUCTION Organization is a social unit which is deliberately constructed and reconstructed to seek specific goals .An organization comes into existence when there are a number of persons in communication and relationship to each other and are willing to contribute towards a common endeavor. The evolution of organization dates back to the early stages of human civilization when two or more persons began to cooperate and combine together for fulfilling their basic needs of food, clothing, shelter and protection of life .Thus, an organization is born when people combine their efforts for some common purpose. It is a universal truth that an individual is unable to fulfill his needs and desire alone because he lacks strength, ability and resources. So he seeks the cooperation of other people who share goals with him. This organization study is carried out at Aiswarya Beverages Thiruvalla. The organization study has been carried out to get an understanding of the structure and functioning of the organization.

NATURE AND CHARACTERISTICS OF BOTTLED WATER INDUSTRY The bottled water industry is a huge business that involves many of the biggest food brands in the world and worth billions. It has grown dramatically in the last decade and today millions of people around the world, in developed and developing countries, consume bottled water regularly. Bottled water competes with soft drinks and tap water. While it is healthier than most other soft drinks, studies indicate that it does not have a real benefit over tap water. In addition, in many places around the world bottled water is regarded as a food item, and as such is less regulated than tap water.
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The production and consumption of bottled water entails various impacts on health, environment and society. The health risks are related not only to the quality of the water, but also to the quality of containers and to storage conditions. The environmental hazards are linked to the energy used and resources consumed in the processing, bottling and shipping of bottled water and to the huge amounts of bottle waste which is not recycled. These, in turn, raise social, equity and justice questions, such as who is being exposed to the risks and who should pay for the damages. The growing awareness to the negative impacts of bottled water on the environment and society has led to some improvement in the bottled water regulation. It also pushed the industry to improve its use of resources and waste management schemes. At the same time, in the last couple of years several local and regional governments have been taking various actions to reduce bottled water consumption. These actions include restrictions on the purchase of bottled water by public funds, banning bottled water in public events and taxes on bottled water.

MARKET As stated by the recent report published by Global Industry Analysts Inc., global bottled water market is dominated by Europe and United States, which together account for about 55% of the market value estimated in the year 2008. Bottled water will continue to fare well in the global beverage marketplace as a healthy alternative to carbonated soft drinks. Gains in bottled water market will also come from flavored varieties and convenient packaged formats, especially single-serve packs.

Sparkling water market is dominated by Europe, which accounts for more than 75% of the world market estimated in 2008. Western Europe comprises of some of the world's largest per capita bottled water consumer markets, which include Germany, France, Spain and Italy. The largest proportion of bottled water consumers can be found in Germany as 88.2% of its adult population drinks bottled water. The non-sparkling water market constitutes the bulk of bottled w 00004000 ater shipments, accounting between 80-85% of the market in both volume and value terms. Non-sparkling bottled water is also expected to offer the highest growth opportunity, outgrowing the sparkling bottle water market by three to four times. Market for non-sparkling water in United States is projected to reach US$15.1 billion by 2012. CHALLENGES The major challenge for most companies is product innovation and differentiation as water is still just water. Containers are an important part of bottled water, as they constitute nearly 47% of cost. Even look, weight and price of the product are as significant as the water itself. For instance, Colorado-based Biota sells bottled water in biodegradable bottles that are produced using corn in order to attract consumers who are ecologically conscious. Some companies try to attract children by selling bottled water in attractive bottles with vivid designs and colors. The bottled water industry is in a continuous state of flux. Entry barriers are low, and decreasing by the day. Large companies are consolidating by acquiring local/small/niche players to increase capacity as well as product portfolio. Consolidation in the industry is expected to accelerate, resulting in higher degree of concentration, with the leading players strengthening their global presence. Bottled water industry in the Asia-Pacific region is expected to experience a major
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boost, as more companies venture into the market to capitalize on the latent demand potential. Product, marketing/promotion, packaging, distribution, price, and technology would be the key factors in garnering market share in the industry. With the everincreasing presence of soft drink majors, such as, Coca-Cola, and PepsiCo, and established leaders Nestle, and Danone, the market is expected to become a cauldron of action in the future. MAJOR PLAYERS Key players dominating the global Bottled Water market include Aqua Gold International Inc, Boreal Water Collection Inc, China Water & Drinks Inc, Groupe Danone, Danone Naya Waters Inc, Isbre Holding Corp, Nestle SA, PepsiCo, Quilmes Industrials Sa-Adr, Saint Elie, San Miguel Corporation, and The CocaCola Company. GROWTH According to the latest edition of Bottled Water in the United States, an annual study done of the beverage market by the Beverage Marketing Corp., bottled water achieved rapid growth during the early 2000s. Bottled water growth and volume rates continued to grow by double-digit percentages in two years time between 2002 and 2004. By the end of 2005, bottled water had grown by 10.8 percent and expanded further the following year by 9.5 percent. The consumer shift away from carbonated beverages and toward bottled water further eroded sales of carbonated beverages. True to form, the category of carbonated beverages recorded its fourth year of volume loss in 2008.

REVENUES During 2008, revenues declined for the first time for bottled water. Wholesale sales for bottled water initially climbed past $6 billion in the year 2000. Sales still grew to $11.5 billion by 2007. However, sales took a downturn the following year in 2008 to $11.2 billion. Even though the category of bottled water did not show any growth in 2008, it reflected an overall flatness in the beverage category as a whole and is not indicative of a lessening demand for bottled water. Much of the flatness of the beverage category as a whole can be attributed to the weak economy in general, along with increased energy costs, higher commodity prices, like plastics, and manufacturing costs. All of these costs were passed on to consumers throughout all beverage categories, not just bottled water. TREND The current trend still indicates that consumers have a strong preference for bottled water. Many consumers perceive bottled water as a healthier alternative to other beverage options, and this perception continues to grow the category. Americans have increased their bottled water consumption since the year 2000 from 16.7 gallons a year to 28.5 gallons a year in 2008. Carbonated beverage consumption during that time frame decreased by more than 6.5 gallons per year. Milk and fruit beverages also declined during the same time frame. Coffee and tea consumption showed small gains during the same time. BOTTLED WATER INDUSTRY IN INDIA Water Shortage and Health Awareness Driving Bottled Water Consumption in India. The Indian market is estimated at about Rs 1,000 Crore and is growing at whopping rate of 40 per cent. By 2010, it will reach Rs 4,000 -5,000 Crore with 33 per cent market for natural mineral water.
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According to a national-level study, there are more than 200 bottled water brands in India and among them nearly 80 per cent are local brands. In fact, making bottled water is today a cottage industry in the country. Leave alone the metros, where a bottled-water manufacturer can be found even in a one-room shop, in every medium and small city and even some prosperous rural areas there are bottled water manufacturers. While India ranks in the top 10 largest bottled water consumers in the world, its per capita per annum consumption of bottled water is estimated to be five litres which is comparatively lower than the global average of 24 litres. Today it is one of India's fastest growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent - the highest in the world. The total annual bottled water consumption in India had tripled to 5 billion liters in 2004 from 1.5 billion liters in 1999. Global consumption of bottled water was nearing 200 billion liters in 2006. BOTTLED WATER TOP PLAYERS IN INDIA The market leader is Bisleri International, which boasts a 40 per cent share. It is followed by Coca- Cocas Kinley (around 25 per cent) and PepsiCos Aquafina (around 10 per cent). The top players in bottled water industry in India are the major international giants like Coca cola, Pepsi, Nestle and noticeable presence of national players like Mount Everest, Manikchand, Kingfisher, Mohan Meakins, SKN Breweries , Indian Railways so on. With increasing competition, this sector will register a robust growth in 2010, predict industry analysts. To take on rivals in this sector, PepsiCo India is drawing up a fresh game plan which includes, investment in capacity enhancement, packaging initiatives and below-the-line activities to pump up volumes in the over-crowded category.
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Meanwhile, swadeshi major Parle Agro is extending the manufacturing facility for Bailley from 29 to 60 plants this year. While swadeshi major Bisleri International is beefing up its distribution, manufacturing and marketing operations, Coca-Cola India is sharpening its focus on packaging initiatives of Kinley to woo new consumes. In essence, the packaged water industry in India will soon witness a major tussle between swadeshi and videshi players to gain market and mind share. The western region accounts for 40 per cent of the market and the eastern region just 10. However, the bottling plants are concentrated in the southern region - of the approximately 1,200 bottling water plants in India, 600 are in Tamil Nadu. But a major problem is southern India, especially Tamil Nadu, is water starved. Top multinational players such as Coca-Cola and PepsiCo have been trying for the past decade to capture the Indian bottled water market. Today they have captured a significant portion of it. However, Parle Bisleri continues to hold 40 per cent of the market share. Kinley and Aquafina are fast catching up, with Kinley holding 20-25 per cent of the market and Aquafina approximately 10 per cent. The rest, including the smaller players, have 20-25 per cent of the market share. HISTORY OF BOTTLED WATER IN INDIA Mineral bottled water in India under the name 'Bisleri' was first introduced in Mumbai by Bisleri Ltd., a company of Italian origin in 1965. Mineral bottled water were in glass bottles in two varieties - bubbly and still in 1965 This company was started by Signor Felice who first brought the idea of selling bottled water in India. Parle bought over Bisleri (India) Ltd. In 1969 and started bottling Mineral water in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC non- returnable bottles and finally advanced to PET containers. Since 1995
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Mr.Ramesh J. Chauhan has started expanding Bisleri operations substantially and the turn over has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently it have 8 plants and 11 franchisees all over India. Bisler command a 60% market share of the organized market. Currently, Bailley has a national presence in 5 lakh retail outlets across the country. We plan to increase manufacturing plants for Bailley from 29 to 60, presently 40 plants are operational and few more will be ready for operations over the next few months, informed Nadia Chauhan, joint managing director of Parle Agro. WHY BOTTLED WATER? Millions of people, both in rural and urban India, suffer from inadequate or no tap water supply. Even some parts of Mumbai, the country's financial capital, get a mere two hours of daily water supply. The city's Virar suburb gets 45 minutes. So bottled water is much in demand by residents - even though the businesses profiting from the sales are thriving from access to public water sources. Bottled water fills a void created by government failure to address basic services, Peter Gleick of the Pacific Institute writes in its World Water report. "In many parts of the world, tap water is not available or safe to drink," writes . "In these regions, the failure of governments to provide basic water services has opened the door to private companies and vendors filling a critical need, albeit at a very high cost to consumers." at fraction of the cost. The institute reasons that governments should tap into spending on commercial water by consumers to secure funds to provide safe water

Bottled water has been treated by distillation, reverse osmosis, or other suitable process and that meets the definition of "purified water". treatments include: * Distillation. In this process, water is turned into a vapor. Since minerals are too heavy to vaporize, they are left behind, and the vapors are condensed into water again. * Reverse osmosis. Water is forced through membranes to remove minerals in the water. * Absolute 1 micron filtration. Water flows through filters that remove particles larger than one micron in size, such as "Cryptosporidium", a parasitic protozoan. * Ozonation. Bottlers of all types of waters typically use ozone gas, an The bottled water

antimicrobial agent, to disinfect the water instead of chlorine, since chlorine can leave residual taste and odor to the water. WATER RESOURCES OVER-EXPLOITED The majority of the bottling plants are dependent on groundwater. They create huge water stress in the areas where they operate because groundwater is also the main source - in most places the only source - of drinking water in India.This has created huge conflict between the community and the bottling plants. Private companies in India can siphon out, exhaust and export groundwater free because the groundwater law in the country is archaic and not in tune with the realities of modern capitalist societies. The existing law says that "the person who owns the land owns the

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groundwater beneath". This means that, theoretically, a person can buy one square metre of land and take all the groundwater of the surrounding areas and the law of land cannot object to it. This law is the core of the conflict between the community and the companies and the major reason for making the business of bottled water in the country highly lucrative. Take for instance the case of Coca-Cola's bottling plant in drought-prone Kala Dera near Jaipur. Coca-Cola gets its water free except for a tiny cess (for discharging the wastewater) it pays to the State Pollution Control Board - a little over Rs.5,000 a year during 2000-02 and Rs.24,246 in 2003. It extracts half a million litres of water every day - at a cost of 14 paise per 1,000 litres. So, a Rs.10 per litre Kinley water has a raw material cost of just 0.02-0.03 paise. (It takes about two to three litres of groundwater to make one litre of bottled water.) On April 7, more than 1,500 villagers defied a police cordon and marched to Coca-Cola's bottling plant in Mehdiganj village, Varanasi, in Uttar Pradesh state, demanding that the company immediately shut down its bottling plant. In January, the New Delhi-based Energy and Resources Institute (TERI) advised Coca-Cola to shut a bottling plant in the drought-stricken state of Rajasthan. India's Ministry of Water Resources has ranked 80% of ground water resources in Rajasthan as "over- exploited" and nearly 34% resources as "dark/ critical", the gravest ranking across the country

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NEED & SIGNIFICANCE OF THE STUDY Organization is one of the inevitable part of business & management .there for study of organizational structure management process ,functions etc.... are very significant as far as present day trend is concerned textile industry and businees is wast growing one.the study is very important for knowing the following . 1) To have an idea about the products 2) To have an idea about the organizational structure of the company 3) To have an idea about the departmental functions of the company 4) To have an idea about the financial position of the company

OBJECTIVES OF THE STUDY To have an overall study of the company and to familiarize with its various functions To enable the trainee to understand the organization structure and processes in a practical setting.

To get an idea about how different functional departments are structured and how each one of them operate

To know how the key business processes are being carried out in a manufacturing firm. To have first hand information about the various policies and programmes of the firm. To provide an opportunity to the trainee to analyse real life problems and apply the concepts and theory learnt in the class room
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SCOPE OF THE STUDY The internship training was intended to provide Industrial exposure to the trainee and bridge the gap between theory and practice .the study was only covered the few departments of AISWARYA BEVERAGES namely personel & administration department, the finance department, marketing department ,production department, purchase department The study was mainly conducted to understand the functions , processes and procedures of different departments of the company. This training report covers the details of the departments in which the trainee could get access and interact with responsible executives.

METHODOLOGY This study was a descriptive study conducted mainly to familiarize with the activities, processes, policies, program and procedures followed in the firm. Required data for the study was collected through monitoring and interrogation. The study is made personally visiting the company at Thiruvalla. The data were collected through various methods the methods adopted mainly are: 1) Primary data 2) Secondary data

Primary data

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Primary data collected through discussion with manager, various department heads, officers and employees. Secondary data Secondary data for the study was collected from internal annual reports, website, and office records were used for collecting relevant information for this study and external sources. Internal records like annual reports, website, office records, management reports, house magazines were used for collecting relevant information for this study. The data needed to prepare this project was obtained from other published sources like internet, magazines, business dailies, journals and business magazines

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INDUSTRY PROFILE

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INDUSTRY PROFILE Water is the most important necessity for life. The drinking-water needs for individuals vary depending on the climate, physical activity and the body culture. But for average consumers it is estimated to be about two to four litres per day. The growing number of cases of water borne diseases, increasing water pollution, increasing urbanization, increasing scarcity of pure and safe water etc. have made the bottled water business just like other consumer items. Scarcity of potable and wholesome water at railway stations, tourist spots, and role of tourism corp. etc. has also added to the growth. Indians currently spending about $330m a year on bottled water, analysts estimate. The packaged water market constitutes 15 per cent of the overall packaged beverage industry, which has annual sales of at least $2.6bn, Deepak Jolly, a spokesperson for Coca-Cola India said. Almost all the major international and national brands water bottles are available in Indian market right from the malls to railway stations, bus stations, grocery stores and even at panwala's shop. Before few years bottle water. was considered as the rich people's choice, but now it is penetrated even in rural areas. The growth and status of Indian Bottled Industry in comparison with Western or Asian market, India is far behind in terms of quantum, infrastructure, professionalism and standards implementation. The per capita consumption of mineral water in India is a mere 0.5-liter compared to 111 liter in Europe and 45-liter in USA. Also
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As per UN study conducted in 122 countries, in connection with water quality, India's number was dismal 120. In comparison to global standards India's bottled water segment is largely unregulated.

Former President Dr. A.P.J. Abdul Kalam has urged youngsters on July 17, 2010 to be aware of water conservation techniques to avoid grave water crisis in future."It is so sad that today, people are forced to buy water in plastic bottles. I am told that bottled water industry is worth nearly 10000 crore rupees and even big companies like the Coke and Pepsi are involved in this bottling of water and making money. So, it is imperative that we ought to save water," he added. Do not be surprise if today's bottles water industry becomes next Oil industry by 2025. Bottled Water Industry in India Water Shortage and Health Awareness Driving Bottled Water Consumption in India. The Indian market is estimated at about Rs 1,000 Crores and is growing at whopping rate of 40 per cent. By 2010, it will reach Rs 4,000 -5,000 Crore with 33 per cent market for natural mineral water. According to a national-level study, there are more than 200 bottled water brands in India and among them nearly 80 per cent are local brands. In fact, making bottled water is today a cottage industry in the country. Leave alone the metros, where a bottled-water manufacturer can be found even in a one-room shop, in every medium and small city and even some prosperous rural areas there are bottled water manufacturers. While India ranks in the top 10 largest bottled water consumers in the world, its per capita per annum consumption of bottled water is estimated to be five litres which is comparatively lower than the global average of 24 litres. Today it is one of India's fastest growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at
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a compound annual growth rate (CAGR) of 25 per cent - the highest in the world. The total annual bottled water consumption in India had tripled to 5 billion liters in 2004 from 1.5 billion liters in 1999. Global consumption of bottled water was nearing 200 billion liters in 2006.

COMPANY PROFILE

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COMPANY PROFILE

Aiswarya Beverages is a Private company incorporated in 2000 with its plant at Thiruvalla in Pathanamthitta District of Kerala. The company was promoted by Aby Mathew, an NRI from UAE. The companys registered office is located at Kerala. The company bottles and sells natural mineral water under the brand name Classic, sources its water directly from an underground aquifer located about 130 metres below the earth's surface. The company started its commercial production in April 2000. The company now proposes to expand its retail distribution network by appointing consignee and distributors agents in various parts of the country. The companys existing clientele includes 5 Star Hotels, Airlines, Embassies etc, and tie-ups with A category retail outlets, modern retail (malls), multiplexes, hypermarts, fine-dine restaurants are also in the offing. The brand Classic, enjoys an aspirational equity amongst consumers and has the potential of truly becoming an international and iconic brand, it is this potential that the new management proposes to unlock through brand building and enhanced distribution. Product range of the company include:

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The companys principal activity is to manufacture packaged natural mineral water with in-house facilities to manufacture PET bottles and caps. It markets its products under the brand name Classic natural mineral water is available in four pack sizes namely,25 ltr, 2 ltr, 1.5 ltr, 1 ltr.

Awards/Achievements

The company and the product enjoy the certification of various authorities like HACCP, BIS and ISI in India.

ORGANIZATIONAL STRUCTURE Aiswarya Beverages follows the line/military organization structure. Managing director is the top leavel. Other functional managers followed by him. The span of control of the organisation is narrow spans .The main advantage of this type of control is that close supervision ,clear chain of command and close control and fast communication between subordiantes and superiors.the model of the organizational design is mechanistic model. An efficient management system plays a dominant role in the success of all business units. It is this section that declares the level of output ,its product in pattern , pricing technique, marketing style and even the mode of conduct of its exicutives. The Chairman and the managing director who are the representatives of the shareholders take the important decisions of the group concerns .they perform strategic planning and policy making function of Aiswarya Beverages .for their
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help,the General Manager,top executives of the companys Management are appointed .General Manager is responsible for the smooth, efficient and productive functioning of the unit ,from the production to the marketing. The middle level management comprises of production manager,marketing manager ,finance manager ,personnel manager, purchase manager,store manager and quality controller. Average Qualification of Employees
a) b)

Top Level: Professionally qualified having sufficient industry experience. Middle Level: Graduation and above with experience in the relevant areas (both technical and managerial) Junior Level / First line management: Diplomas / industrial training certification in the textile industry and experience.

c)

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ORGANISATION STRUCTURE

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Managing Director

GENERAL MANAGER)

FINANC E MANAG ER PRODUCTI ON MANAGER

ORGANISATION STRUCTURE

Human Resourc e Officer

ACCOUNTS OFFICER CUM CASHIER

Human Resourc e Manage r

PRODUC TION IN CHARGE SUPE RVISO R WORK ERS QUALI TY CONT ROLL ER

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MARKE TING OR SALES MANAG ER

DETAILED STUDY OF

DEPARTMENT

Super visor

Exec utive s

Sales man

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MARKETING DEPARTMENT

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MARKETING DEPARTMENT Aiswarya Beverages Limited has got a very good marketing department controlled by efficient and dynamic marketing managers.Mr.K.C Mathew is the marketing manager of Aiswarya Beverages .Marketing Manager reports to General Manager and Managing Director. STRUCTURE OF MARKETING DEPARTMENT
Managing Director

General Manager Manager (Marketing) Assistant Manager Marketing Officer

Assistant Marketing Officer

Marketing Assistants

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Marketing Organizers

CO-ORDINATION OF MARKETING ACTIVITIES The marketing executives in Aiswarya Beverages follows certain procedures. All sales executives have to report to the assistant managers in sales every day .the assistant manager and marketing manager are in constant touch with the sales executives who are in the field. The sales executives have to daily sales report in all Mondays. Meeting of all personal in marketing department is presided by the general manager in this meeting all the activities and achievements are discussed new plans and strategies to increase the sales formulated and other issues are discussed. MARKETING POLICY The marketing policies of Aiswarya Beverages in such way that it does not entertain middleman a direct marketing approach and all the dealings are direct there are no stockiest of whole sellers it can be seen that Aiswarya Beverages by following this approach has a more favorable condition in the market situation .the company is following a hierarchical channel of distribution Company Dealers Consumers
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CUSTOMERS The companys customers are average and above average income earners. MARKETING DEPARTMENT OF AISWARYA BEVERAGES The marketing department of Aiswarya Beverages is very efficient ,it scans the environment ,analyses marketing opportunities ,designs marketing strategy ,implementing and controlling marketing functions .It employees direct marketing strategy, avoiding intermediates ,Aiswarya Beverages enjoys large customer in core markets especially in south Indian market, it has high demand. ADVERTISEMENT The basic function of the advt is to influence and motivate people to buy a product .the main media used by the company are television and print media .Apart from this advertisement are made through hoardings ,wall paintings, banners ,metal boards, stickers and danglers. The company has special advertisement, schemes, i.e. sponsoring entertainments like sports and festivals. MARKETING FUNCTIONS Aiswarya Beverages has a dealer network of more than 2500 dealers who spread all over Kerala. Dealership are allotted only after assessing of credit worthness, efficiency etc. Dealers obtain the products upon order over the van of company and products are delivered either at godown or showroom. ROLE OF MARKETING MANAGER

Monitoring of order taking and to ensure promote delivery

Ocassional field visits to follow upon the sales executives

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Direct enquires to be dealt

Attending marketing meetings chaired by the marketing manager and follow up of the decisions taken

Maintenance of customer relationship Marketing survey report analysis Supply of products based on the order taken and handling collection of cash cheque ,demand brand money etc.from dealers,outstanding collection etc.

MARKETING STRATEGY Marketing department of Aiswarya Beverages is very vigilant of its environment and also very conscious of market potential about their major competitors ,companies stratigies ,weakness etc... .as a result of stiff competition the top management has appointed a general manager in the marketing and he looks over all the activities very efficiently. Major compertitors of Aiswarya Beverages are Aquafina, Kinley, Green Valley, Bisleri etc.. and they adopt various marketing strategies. Their marginal price will be also high when they sell to their dealers but in the case of Aiswarya Beverages the margin is very less. Also the firm enjoys a good market owing to its quality eventhough it has a bit high pricing. MARKET SEGMENTATION We know that customers preferance vary with segments and different aspects.the marketing segmentation procedure of Aiswarya Beverages mainly focuses on
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surveys. Marketing manager conducts survey process the staff of research and development department does this process, this includes informal interview with a focus group of customers this is done to gain a clear insight in their motivation ,attitude and behavior using their findings a researcher prepares a formal questionnaire which is administered to a sample of customers to collect data on the following Brand awareness and rating Product usage and pattern

Demographic, psychographic details of respondents

MARKETING MIX Marketing mix consist of everything a firm can do to influence demand for its products. Aiswarya Beverages also follows the ideas of marketing mix, they are

PLACE MIX Location of plant is one of the early decisions of entrepreneur has to make for earning maximum profit location determines the survival as well as the prosperity of business in the free market economy the unit is located Thiruvalla the total extent of land is around 16500 square feet. It is well connected with road the availability of skilled and unskilled labour is also a factor in selecting location

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AISWARYA BEVERAGES CHANNELS OF DISTRIBUTION Distribution is the act of carrying goods or services from the producer to the customer

DISTRIBUTION OF CONSUMER GOODS Producer Producer Producer consumer retailer wholesaler consumer Retailor Cunsumer

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DISTRIBUTION OF INDUSTRIAL GOODS Producer Producer industrial user industrial distribution user

MARKETING SYSTEM Production

Dealer

Showroom

Customers

CRITERIA FOR SELECTING DEALERS

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Dealers are selected on their experience in relating potential of particular town after selecting dealers a contract is entered between the dealers and company. The contract lays certain items and condition of dealership at the time of appointment. A deposit of 2000 is accepted from him. The dealer is allowed 12% interest per annual of the deposit recieved. The deposit decrease is payable on termination of dealership effort. PRODUCT INNOVATION Company takes its time to analyse its opportunities and prepare the best product and then compete itself for the long run to make product a success. All the products are marketed through a network of over 2000 authorised dealers.

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PERSONNEL AND ADMINISTRATION DEPARTMENT

PERSONNEL AND ADMINISTRATION DEPARTMENT The company employees over 250 workers and does not have any trade union problems the workers and the management sit across the table and negotiate their demands and rights .the company has an efficient administrative department which carryout the following function . STRUCTURE OF HR DEPARTMENT
General Manager Manager (HR)

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Assistant Manager

Junior Superintendent

Senior Assistant

Junior Assistant

Staff

Functions The main function or role of personnel manager and Administration manager 1. Advisory Role: Industrial psychology and Sociology. 2. Operative and Service role. 3. Conciliators Role. 4. Specialist advisory Role. a. Formulation of HRD function and suggesting the HRD needs of the organization. b. To find out ways and means of implementation of HRD Function.
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c. Monitoring the HRD activities of the organization. d. Total commitment towards implementation of HRD.

Role of Personnel Manager 1. To create necessary infrastructure for HR development activities. 2. To laise with HR manager in identifying areas for HR development. 3. To arrange proper placement to trained employees. 4. To activate association and employees to take part in HR development activities which are beneficial to both employee and management. 5. To monitor utilization and effectiveness of HR development training.

The Activities Normally Associated with This Department Are: 1. Human Resource Planning Human resource planning is understood as the process of forecasting an organization future demand for, and supply, of the right type of people in the right number. In Aiswarya Beverages , The concerned department is always updating the list of people (after all preliminary formalities).

2. Recruitment

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Recruitment is a process of searching for and obtaining applicants for jobs from among whom the right candidate can be selected. Recruitment process is done after the job analysis and job design which specifies the taste and duties of job and qualification expected from the respective job holders.

In Aiswarya Beverages , the personnel and administration department have a clear cut recruitment planning. For this they give advertisement in news paper and other medias. After collecting all application, department sorts these application and call up the right candidate for the interview. This process comprises of 5 interrelated stages. They are:

o Planning o Strategy Development o Searching o Screening o Evaluation and control

In Aiswarya Beverages , internal recruitment also takes place. This includes present employees, employee referrals, formal employees and former applicants. For the recruitment of office staff and managerial personnel, external sources like advertisement in news papers, employees weekly etc are used. Other sources are advertisement in company website, employee references and resumes of the
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candidates which the company passes. While selecting the weaver trainees and helpers, qualification along with sufficient experience in the industry is also required. They can directly appear for interview. Sometimes selection order is on the basis of the recommendation from the known person. For skilled jobs like fitter, electrician, instrument technician, jobber, etc information is passed through advertisement. For this, experience in respective field is good advantage. 3. Interview and Selection After screening test the candidates are called for the interview. For the post of office staff and managerial position various other test are also conducted with the help of experts in the field. The short listed candidates are going for interview. The interview panel consist of M.D, G.M, Department head, and Administration manager. For the post of work men interview selection is conducted usually 2 nd Saturdays. The organization conduct walk-in-interviews also.

4. Probationary Period After the selection process the selected supervisory and managerial positions holders have to undergo probation of 6 months. During this period monthly evaluation is done on the basis of the following criteria. Professional Knowledge Promptness Dependability Attitude towards supervisors
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 Attitude towards co-workers Leadership and Initiative qualities Attendance and Punctuality General ability

Grades are given like Satisfactory, Unsatisfactory, Outstanding, and Good. If a candidate gets satisfactory grade in consecutive months, he will be eliminated before the termination of the probationary period. Confirmation is done only after the probationary period. 5. Training and development Training and developments refers to the imparting of specific skills, abilities, and knowledge to an employee. Successful candidate placed on the job need training to perform their duties effectively. For the weaver trainees, the period is 1year.

In addition to the technical training, training program is conducted by Aiswarya Beverages Community college. The company is also conducting on the job training programs. Training program includes morning and afternoon sessions. During the training period food and accommodation is provided by the company. After successfully completing the training program the candidate are awarded certificates. 6. Performance Appraisal

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Yearly evaluation of performance is done for the employees. The evaluation criteria for the managerial and supervisory levels are: 1. Conceptual skills ability 2. Decision making skills ability 3. HR skills ability 4. Organizational skills ability 5. personal characteristics 6. Job ability 7. Integrity and honesty. 7. Employee Remuneration Remuneration of the employee occupies an important place. Remuneration is the compensation that the employee receives in return for his or her contribution to the organization. In Aiswarya Beverages , the organization provides all remuneration insisted by the govt of India and Government of Kerala. This includes: Wages and salary Incentives Fringe benefits Perquisites Non- monitory benefits. 8. Wages and Salary The company follows time rate system and piece rate system. The employees other than the office staff and plant general workers come under this system in which payment is made according to quantity produced on a monthly basis. Salary is paid along with pay slip, which contains details of the pay. At the
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time when an employee receives salary he should sign on the copy of the pay slip and it is filed in the department. The compensation package consists of: Basic pay + DA + HRA + Conveyance + Childrens educational allowance 9. Incentives Besides the above package the employee will get other incentives like production incentives, monthly incentives etc.

10. Employee Welfare Measures In India labour welfare measures can be divided in to statutory welfare measures and non-statutory or voluntary welfare measures.

a. Statutory Welfare Measures I. Accident Benefit If the employee, who is covered under the Employee State Insurance Scheme (ESI), during the works, suffered with an accident he will be paid as per ESI scheme. If the employee is not covered under ESI, the company will meet all

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expenses and grant him special leave in case of any accident. A group accident policy is also taken by the company by which all the employees will be benefited.

II.

Annual Bonus The company pays annual bonds to its employees based on the companys

performance in the previous year. 8.33% to20% of the profit is given as bonus every year. III.Canteen The company has separate canteen for male and female employees. For drinking water, coolers are also installed in the company wherever necessary. IV.Gratuity

Aiswarya Beverages maintains a gratuity scheme for its employees who have completed 5 years of experience including training period.

V.Provident Fund The company contributes 12.5% in the employee P.F scheme.

b. Voluntary Welfare Measures i. ii. iii. iv. Attendance Allowance Uniform Allowance Childrens education allowance Free tea and coffee for office staff
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v. vi. vii. viii. ix. x. xi. xii.

Funeral expenses on the death of family members of the employees Saving schemes for employees Stands as guarantee for the employees to buy vehicles and house holder on hire purchase Leave- Earned leave for 15days is granted to employees. Maternity leave of 12weeks is granted to the female employees Free accommodation is granted to female employees Night shift allowances and OT allowance One day tour program is conducted once in every 2 years Health and Safety measures.

11. Hostel In Aiswarya Beverages , organization provides separate hostel facilities for the ladies and gents. It includes canteen, accommodation, and entertainment facility. For the purpose of administration of ladies hostel, organization has appointed a hostel warden and two assistant warden and hostel staff. In every weekend the P&A manager or personnel officer visits and check the facilities and function of the hostel. Also the department conducts performance appraisal and annual day celebration for the employees.

12. Security Department For the security and discipline of Aiswarya Beverages , the organization provides a security department under the P & A Department. This includes a security officer and staff. The main function of the security officer is to check the baggage and carriers coming into the organization and the products delivered from
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the packing section. The security department marks in the register the quantity of the product, place, time etc.

13. Trade Unionism There are companies which are non- unionized. Aiswarya Beverages is such a company. In Kerala we can see a lot of trade unions and problems created by them. In this case this is great privilege for the company as a union free company. This is maintained in Aiswarya Beverages through good employee relation.

14. Industrial Relation Industrial relation is concerned with the relationship between management and workers. In Aiswarya Beverages the management is very conscious about maintaining good industrial relation between management and workers and the role of regulatory mechanism helps in resolving any industrial dispute.

15. Promotion Promotional activities contribute to the employees satisfaction and motivation. If mishandled it leads to discontentment, frustration among employees and culminates in a high rate of labour turn over. In Aiswarya Beverages within the limitation the personnel department, it lays down a sound promotional policy and ensures its implementation.

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16. Transfer Transfer involves a change in the job (accompanied by the change in the place of the job) of an employee without change in responsibilities or remuneration. 17. Separation Layoff, resignation and dismissals separate employee from their employer. Separations are painful to both the parties and should therefore administer carefully. They are: Lay Off:- Temporary separation Resignation:- Termination of employment at the instance of the employer Dismissal or Discharge:- Termination due to excessive absenteeism, serious misconduct, false qualification statement, theft of company property VRS:- A novel scheme or golden hand shake plan

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FINANCE DEPARTMENT

FINANCE DEPARTMENT Finance is the blood of business finance department consists of all the managerial activities of raising funds and effective utilization.finance department lies in decision making area of investment,finance and dividend.recruitment and
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promotion in production are the activities of H.R department.but it requires payment of wages,salaries and other benefits.but these are done by finance department.finance manager is the head of finance department.Mr.Dony Dominic is the finance manager of Aiswarya Beverages .He decides when and where the acquire funds to meet firms investment needs.he should determine the proporition of equity/ debt.the Finance department should strive for obtaining the optimum capital structure for the organization.the finance department may consists twenty five staffs.

STRUCTURE OF FINANCE DEPARTMENT

General Manager Manager Finance

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Assistant Manager

Junior Superintendent

Senior Assistant

Junior Assistant

Staff

BOOKS MAINTAINED BY FINANCE DEPARTMENT Cash book Bank book Sales pay book
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 Purchase pay book Journal register DUTIES OF FINANCE DEPARTMENT

Maintaining the books of account Preparation of budget estimate Preparation of administrated reports Schedules of the employees Preparation of the monthly and annual accounts Verifiction of all proposal related to finance Strict adherence to bill of material during purchase

MAJOR FUNCTIONS OF FINANCE DEPARTMENT Recording of day to day transactions Preparation of various statement regarding stock,receivable etc.which are to be submitted to various authorities like,bankers,insurance etc.

Planning and controlling of the expenses and funds for production

Approving and making payments to different parties,creditors or suppliers Receiving payments from customers and dealers in specified time
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 Raising short term loans or creditors from banks and other financial institution Preparation of sales budget or revenue budget and expenditure budget on a quarterly basis Preparation and maintenance of costing records Preparation of fund flow and cash flow statement for every month Timely preparation and filling records Preparation and filling of quarterly and final income tax returns

Preparation and implementation of cost reduction and cost control programs

In addition to the above mentioned work the following reports are prepared by the finance department

Annual report containing past performance,current financial figures,profit and loss account,balance sheet and other financial statement Half yearly and quarterly reports Monthly reports to the top management on the financial performance of the company including sales achieved and profit generated Conduct and co-ordination of internal and statutory audits Prepectual stock verification and asset verification
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 Investment

analysis

or

feasibility

study

in

production,supply

order,contracts etc.. The finance manager is responsible for maintaining funds at optimum level care at taken to see that working capital never gets blocked anywhere at any time. The company meets working capital requirements usually by bank OD and other short term loans on the security of stock of finished goods.

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PURCHASE DEPARTMENT

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PURCHASE DEPARTMENT The Purchase department plays a very important role in the company and it has its effect on every vital factor concerning the manufacture, quality, cost efficiency, and prompt delivery of goods to customers. Its function is to procure materials, supplies, services, machines, and tools favourable terms consistent with maintaining the desired standard of quality. Purchasing is the important function of materials management as the moment an order is placed for materials a substantial part of the companies finance is committed which effects cash flow position of the company. The company is having a centralized Purchase department headed by the purchase manager. He is assisted by 2-purchase officers and an office assistant. Mr.Venugopal is The Purchase manager of Aiswarya Beverages he is assisted by two purchase officers and an office assistant.the Purchase manager reports to the General Manager and Managing Director.the Purchase manager coordinates the entire purchase activities. In case of local purchase or minor items which are frequently required, it is the responsibility of the purchase officers to ensure the timely procurement of materials as the purchase requisitions issued by the stores when the items of materials have reached the re-ordering level.

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The basic objective of setting up a separate purchasing department is to ensure continuous availability of quality materials,so that production is not held up and reduce the cost of finished product according to their proper plan.

STRUCTURE OF PURCHASE DEPARTMENT

General Manager Manager Purchase

Purchase Officers

Purchase Assistant

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Duties and Responsibilities of Purchase Manager 1. To make continuous availability so that there may be uninterrupted flow of material for production. 2. To make purchase competitive and price at the most economical form. 3. To make purchase in reasonable qualities to keep investment in material minimum. 4. To purchase proper quantity of material to have minimum possible wastage of material and loss in production. 5. To develop alternative source of supply so that material can be purchased from those alternative source if particular supplier fails to supply the material. 6. To adopt the most advance method of purchase to ensure smooth delivery of material from supplier and to avoid the risk of any dispute and financial loss. 7. To serve as an information centre on the material knowledge relating to purchase, source of supply specification and mode of supply. Factors considering while selecting supplier
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1. Manufacturing capacity. 2. Reliability of suppliers. 3. Financial condition of the suppliers. 4. The management of supply firms. 5. Price quoted. 6. Terms of payment 7. Terms of delivery. 8. Specification to which products are manufactured. 9. Quantity for which price quoted is applicable.

Materials Purchased The following are the major items of materials purchased by the company. 1. Pet bottles
2.

Chemicals

3. Labels 4. Electrical equipment and accessories. 5. Packing materials and office stationary. The company is having a centralised system of purchases .almost all purchases are managed by the purchases department and controlled by the top management. Purchase officer assist the purchase manager. They coordinate the entire purchase activities. In the case of local purchases or minor items, which is frequently require, it is the responsibility of purchase officer to ensure timely procurement of materials. The purchase department purchases the materials as per the purchase requisitions issued by the stores when the items of materials have reached the re-ordering levels.
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Purchasing procedure 1. Identifying the materials 2. Exploring the sources of suppliers. 3. Issuing purchase order. 4. Receiving and inspecting materials.
5.

Checking and passing of Bills for payment

STORES DEPARTMENT

The stores department headed by stores manager. He is assisted by four persons; two in general shift and one each in other two shift. The stores manager is reporting to the general manager storage of all items of raw materials including chemicals adhesives, spare parts, electrical items, lubricants, tools, office stationery packing materials, etc.. Are the responsibilities of the stores department. Functioning of the stores department is controlled /administered by the stores manager. materials storage is planned by the stores manager with the help of the purchase/production department.

PROCEDURE OF ISSUE OF RAW MATERIALS When particular item of raw material spare parts or tools are required for

production, the supervisor of the concerned section of the production department issues a material requisition on receipt of the materials requisition note or material
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indent, the stores manager sees whether the item demanded in stock in the stores. If the required item is stored in the stores, it is issued to the concerned department or section and the acknowledgement for the same is obtained and field in the stores. If the particular item or material is not available with the stores or the same has re-ordering level, the stores department informs the purchase department and issuing purchase requisition.

The quantity ,quality and other specification of the item issued are recorded in the issue are recorded in the store ledger control account, prepared and maintained by the stores. Issue and usage of cotton yarn and packing materials are recorded in the stores ledger control account even though they are not stored in the stores

The store department is fully computerized .A special software package is designed and installed for inventory management in stores. All the receipts and issues are recorded in the company.ABC analysis of inventory is done regular basic. Physical stock taking is done once in every month by the stock taking by the statutory auditor. The stock verification is done independent of the store keeper and stores manager. All stock of raw materials and spare parts are stored in assigned areas only. Access to those areas is restricted. All stock of raw materials, spare parts, tools, etc..are insured against fire and hail damage. A record is maintained for the insurance policies are duly complied with perpetual stock records are kept for races materials, stores, spares, work-in-progress and finished goods these records are periodically reconciled with accounting records

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MATERIALS CONTROL SYSTEM

The company has a materials control system, which ensures that right quality of materials is available in the right quality at the right time and right place with the right amount of investment. It is a comprehensive frame work for the accounting and control of materials court designed with the objective of maintaining materials
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suppliers at a level so as to ensure uninterrupted production, but at the same time minimizing investment of funds. Because materials constitute such a significant part of product cost and since this cost is controllable. The company has proper planning, purchasing, handling and accounting for materials. Two levels of material control trust in the companyquality control and financial control. production manager and stores manager are primarily interested in quality control, because it is their responsibility to see that there should be no stock out problem. Finance manager, on the other hand is interested that too much money should not be invested in materials and every rupee spends on materials should be effective and efficiently utilized. TECHNIQUES OF MATERIAL CONTROL

The following are the main techniques of material control used by the stores department

Level setting,economic order quantity

ABC analysis

Perpetual inventory system

Material turnover ratio Material cost report

The company does not have any stock in public ware house or with consignees.

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Features of Material Control System Continuous availability of all types of materials in the factory. No excessive investment in stock materials. While purchasing materials, it is seen that it is purchased at reasonable low price by the store department. Information about availability of materials is continuously made available by the store manager. There is proper co-operation and co-ordination among departments. As a part of material control system there exists an internal check on material so as to avoid misappropriate of store items.

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QUALITY CONTROL DEPARTMENT

QUALITY CONTROL DEPARTMENT

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Aiswarya Beverages is very much concerned about the quality of the product and some export is also made so high quality must be ensured to meet international standards. The company has ISO certification the company has different equipments and machineries to ensure at different stages of production. The main aim is to provide maximum quality at minimum cost.

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SUGGESTIONS AND RECOMMENDATIONS

SUGGESTIONS AND RECOMMENDATIONS At present ,the over all fuctions of the company are going on well,but certain changes are required to bring in the developmental angle.suggestions are made under the various employee related areas,which are given below;

To increase organizational effectiveness

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Majority of the work force is from the lower level of the society and is in the lowest level in the Maslows Need Hierarchy .only the fulfillment of their basic needs through money can motivate them.

Resistance to change by all concerned. HRD takes a lot of time and effort for obtaining tangible output.HRD suggestions shall be more effective and the result shall be more forth coming,if the following background studies are implemented before taking up the suggestions.

Vision ,mission ,quality policy etcfor the organization to the development in liaison management. A formal top to bottem flow of information between the

management and the employees to be generated throughcircular,notice etc..this creates awareness regarding the company vision,objectives,policies and practices.

Job description revamping the organizational structure (look to decreasing span of management) and job specification studies.job evaluation study and gradation along with gradation,designations have to be revamped.

Industrial visists to other establishments to be arranged for the employees to create and develop general awareness regarding new concepts systematic functioning etc..visits could be conductued to textile plants in coimabtore manufacturing units in and around cochin.

Monthly informal meeting of all the managerial staff to sort out problems in an informal way to aid in conflict resolution,team building etc..

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CONCLUSION
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CONCLUSION The project study entitled organizational study of Aiswarya Beverages ,Thiruvalla has given me deep knowledge about the organization and the textile industry. The data with regard to the study collected from the Aiswarya Beverages helps to understand the process of production of textiles.each department in Aiswarya Beverages was analysed in detail.various processes are controlled and monitored under the skilled supervision and skilled labours. The study given information about the manufacturing products,organizational structure of the company,departmental functions and gives a good knowledge about the financial position of the company.the co-operation and interaction extent by the employees and management of the Aiswarya Beverages have made it

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possible for the depth organizational study which would be of much used to the research in the future.

BIBLIOGRAPHY

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BIBLIOGRAPHY Books Marketing management JOURNALS : Philip kotler, : Company Annual report, The Hindu Business Line, .

Websites visited

www.classicwaters.com www.bottledwater.org

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