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Organizational Study

INDUSTRY PROFILE FOOD PROCESSING INDUSTRY


India is worlds second largest producer of food next to china, and has the potential of being the largest producer. The growth of the food industry in India arises consistently from the increasing agricultural output. The Indian food market accounts for about two third of the total Indian retail market. The Indian food industry is estimated to be worth over $200 million. India is one of the worlds major food producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters. The Indian food processing market is one of the largest in term of production, consumption, and export and import prospects. Since India is one of the major food producers worldwide, with new reforms, it presents exciting opportunities for commercial openings for a wide range of investors across the globe. India's wheat production is estimated at 81.47 million tons in 2011-12 crop years, up almost 1% from the last year. The rice output is also estimated to reach 94.01 million tons against 89.09 million tons during last year. As per latest second advance estimates of Agriculture Ministry, India's food grain production will reach to 232.07 million tons from 218.20 million tons of the last year, up 6.4%. In February 2007, futures trading in this major food grain were banned. Later on, the grain was re-introduced for futures trading in May 2009. The Exchange (with the approval of the Forward Markets Commission) has made modifications in the Wheat

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futures contracts related to some of the quality parameters which will be applicable for all contracts expiring in January 2010 and thereafter.

The office of the Agricultural Affairs of the USDA / Foreign Agricultural Services in New Delhi says that one of Indias proudest accomplishments has been achieving a tenuous self-sufficiency in food production and that the country produces a wide variety of agricultural products at prices that are at or below world values in most cases. The Indian palate is accustomed to traditional foods, mostly wheat and rice-based, rather than potato and corn-based western palate. In marketing perspective, this is considered an important factor for foreign marketers. Currently, processed food accounts for merely 2% of total food production in India, which is very low as compared to the western countries. Taking market forces such as rising income level and changing consumer behavior due to rapid economic growth into consideration, it is expected to reach a growth rate of 10% in 2012 & 25% in 2020.

Major Changes in FPI


Currently, the Indian food processing industry is basically export oriented. Although domestic consumption of processed food is low but it is fast picking up with rising income level & changing consumer behavior due to economic growth. Indian processed food industry provides competitive advantages over other countries due to cheap workforce, government initiatives (tax holidays) & availability of raw materials.

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Existence of untapped large consumer base with rising income levels. Indian food processing level as compared to countries like USA, France & Malaysia countries to remain very low. However, with the emerging positive market forces, it is all set to boom.

COMPANY PROFILE

2.1 INTRODUCTION OF COMPANY


Sunil Agro Foods Limited is a Flagship company belonging to B.Shantilal Group having a turnover of around Rs.100.00 crore and holds good market share in Karnataka. The Company is an profit making Company in the manufacture of Wheat products namely Maida (Wheat Flour) Sooji (Semolina) Atta (Wheat Resultant Atta) Bran (Wheat Bran)

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The whole Wheat Atta extracted out of wheat. The marketing network spread all over south, sound tie-up in marketing, experienced promoters, locational advantage (with infrastructure facilities) favorable demand supply gap, growing consumer trends and assured off take of production.

2.2 PROMOTERS & MANAGEMENT Promoters Profile:


Name: B.Shantilal. Age: 65 Years. Birth place: KGF - Karnataka, India. Earlier Background: Mr. B.Shantilal started business as marketing wheat and wheat products in and around southern India during 70s and slowly during 80s established few Roller Flour Mills in Karnataka and other Places.

Presently Heading: BS Group of Companies.

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Companies:

Belgaum Roller Flour Mills (P) Ltd. (Chairman and Managing Director) unit at Belgaum set up during 1980. Present capacity is 100 TPD(ton per day).

Brindavan Roller Flour Mills (P) Ltd. (Chairman and Director) unit at Mysore set up during 1983. Present capacity is 200 TPD.

Sunil Agro Foods Limited (Chairman and Managing Director) unit in Hosakote, Bangalore set up during 1990. Present capacity is 175 TPD.

Group Turnover: Rs.100 crores. Executive Committee: In Federation of Karnataka Chamber of Commerce and Industry, Bangalore.

Past President: Roller Flour Millers Federation of India, New Delhi. Past President: Karnataka Roller Flour Mills Association, Bangalore. President: Wheat Products Promotion Society. Activities: Involvement in Social Activities.

The promoter has more than 37 years experience in the marketing of wheat products. Management and key personnel have considerable experience in flour mill technology with established quality milling, marketing and financial management.

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Mr.B.Shantilal - Managing Director - the key Management person presently Chairman of the Company / Group has an excellent track record in marketing of wheat products.

Mr. Pramodkumar S, a Commerce Graduate, is Executive Director of Company looking after the overall administration of the Company.

Mr. Sunil S Jain, BE, MBA is also a Director of the company. Mr. AVS Murthy and Mr. Shailesh Siroya are outside directors in the company.

In addition to the above, the Company is assisted by a team of qualified professionals.

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2.3 HISTORY AND GROWTH OF THE COMPANY


In 1988 the Company was incorporated as a Private Limited Company on 20th January. The company's object is Processers of wheat to Maida, Atta and sooji. In 1994 it was converted into a public limited company on 13th April. It was promoted by B. Shantilal, Kamala Bai, B.S. Vinod Kumar and S. Pramod Kumar. And in 1995 the Company undertook to double its production capacity to 60,000 tpa plant and Machinery were imported from M/s. Polimex -Cekop of Plant and other machinery were procured indigenously. The Company entered into a technical arrangement with Narpinder Kumar Gupta New Delhi, for technical drawings, selection of imported machinery, etc. 7,20,000 No. of equity shares issued to promoters, directors etc. 22,80,000 No. of equity shares of Rs.10 each were then issued through a prospectus during May 1995 as follows: On firm allotment basis: (i) 7,80,000 shares to Indian promoters at a premium of Rs.8 per share. (ii) 3,60,000 shares at a premium of Rs.15 per share to NRIs/OCBs

(iii) 1,50,000 shares at a premium of Rs.15 per share to banks. Of the remaining 13,400 shares reserved for allotment on a preferential basis to employees. (Only 12,800 shares

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taken up). Balance 9,76,600 shares along with 600 shares not taken up by employees issued to the public. This company is a leading producer and supplier of quality wheat products. It has customers ranging from biscuits manufacturers to those catering to specific customers. The manufacturing plant of the company is located at Hosakote Industrial area, Chokkahalli, Hoskote. The company tied up with ITC Foods for contract milling which yielded good revenue contributing to the profits. The contract has been renewed for another year. SUNILAGRO also carried on trading in commodity exchange through NCDXEX resulting in a profitable position.

AWARD
The Company has been awarded the Best Performance in Productivity award from the National Productivity Council, New Delhi for the year 1992-93 and a certificate of merit from the Roller Flour Millers Federation for the Commendable R & D.

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PRODUCT PROFILE OF SUNIL


PRODUCT OF SUNIL AGRO Maida (Wheat Flour)

Used in bread, biscuits, pasta preparations. Sooji (Semolina)

Used in Hotel and household daily consumption. Atta (Wheat Resultant Atta)

Used

in

Hotel and Household daily consumption.

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Bran (Wheat Bran)

Used in Cattle and Poultry feeds.

Maida (Wheat Flour): The Wheat Flour is extracted from the wheat. Wheat flour comes from softer types of wheat, it is white in color. It forms a regular part of our diet and high on demand in the markets for its superior quality. SUNIL provides their clients, high quality Wheat Floor. The powder is obtained from finest plants and supplied to us, from registered vendors (flour mills).

The quality grain used in producing the flour, gives you the perfect taste, softness and mouth feel for preparing chapatti / roti, bread and other products. All our wheat flour varieties would come with the best quality, most authentic taste, well cleaned, hygienically processed and packed to meet with the international standards. This wheat flour is mechanically hulled, dried and sourced from the finest producing regions of India. These products are offered by us at most competitive market prices, without any compromise on quality.

Why Our Wheat Flour?

100% fresh

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Free from defilements Rich in nutritional content Whiteness, super fine, rawadar Delicious flavor Well - sealed packaging

Bread Biscuit Sweets Namkeen Roti Tandoori roti

Used in the Preparation of


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Packaging Available Packaging all our varieties of Wheat Floor are available in poly pack (PE), and PP bag. In terms of sizes, it is available in 10 kg, 25 kg, and 50 kg. We also pack as per your customized needs and requirements. Sooji (Semolina): The company has been laid down strong effort to maintain standards in their quality & organizational aspects to maintain a sound relationship with their customers. Semolina

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made from durum wheat is yellow in color. It is usually the basis for dried products such as couscous, which is made by mixing roughly 2 parts semolina with 1 part durum flour.

Semolina is used to make savory foods like rava dosa and upma or sweets like sheera, suji halwa. It is sometimes also used to coat slices of fish, before it is pan fried in oil, which gives it a crispy coating.

Processed hygienically High nutritional content Free from defilements Rich in taste

Why Our Wheat Semolina?


Macaroni Halwa Breads Idli Upama Puri (Pani Puri, Chat)

Used in the Preparation of


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5kg 10kg 25kg 50kg

Packaging Available

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Atta (Wheat Resultant Atta): SUNIL is constantly putting its efforts towards development of flour expanding its assignment of customer product quality towards other segments of end users as well. Adding feather to the cap, SUNIL has added a product as Chukky Fresh Flour Meal Atta by installing a Chukky Plant that manufactures atta through traditional grinding using rubberized emery stones by offering a product exclusively for making Chapathi and Puri to render unique softness, puffiness, fiber aroma and wheaty taste.

Processed hygienically 100% inspection of the purchased wheat quality High nutritional content unique softness, puffiness Well - sealed packaging

Why Our Wheat Resultant Atta?

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Bakeries items Parotta Chapathi Domestic end users Puri

Used in the Preparation of

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5kg 10kg 25kg 50kg

Packaging Available

Bran (Wheat Bran): Wheat Bran is extensively used as a cattle feed. Wheat Bran made available by us is offered in safe packaging to suit the precise needs of the clients. Consequently, SUNIL is identified as one of the renowned Wheat Bran Manufacturers and Suppliers based in South India. Some people even take wheat bran in powdered form as a way of getting their needed dietary fiber each day. A small amount of wheat bran can be added to smoothies, especially when it is finely powdered. One can purchase wheat bran in bulk, which makes it quite easy to add to cereals like granola or to baked goods. Wheat bran muffins are a natural choice, but adding wheat bran to pancakes, biscuits, waffles, or even cookies is a great way to bulk up the nutritional value of a food.

Materials Used

Course wheat

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Hygienically processed Rich in nutritional content 100% fresh Free from impurities High in fibre

Why Our Wheat Bran?


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5kg 10kg 25kg 50kg

Packaging Available

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NAME OF RAW MATERIAL Wheat

SINIL is one of the distinguished Wheat Products Manufacturers and Suppliers, based
in South India. The range offered by them encompasses Wheat Flour, Refined Wheat Flour, Wheat Semolina and Wheat Bran. Apart from this, the company also imports source products machinery (flour mill) and chilled rolls. Today, we are considered to one of the market leaders of Tanduri Atta, Suzi, Maida, Fresh Chakki Atta etc.

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ORGANIZATION STRUCTURE INTRODUCTION


The important theme of departmentation is that, the only man cannot handle the problem of all the transaction related to the Human Resource department. Like as regards the placement of employees, solve the labour problem etc. Like give the human resources, to arrange the training program for the new employees of the company. These all problems are related with the Human Resource management of the company.

First of all look on the problems of the production management like to arrange support service, production plans, Log Book/ Manpower Scheduling, material accounting procedure, daily reports. All these problems are related with the production department.

Now lets look on the problem relating to the marketing department like nature of the product, sales forecasting, marketing storage, pricing of the company, distribution network, marketing budget, important client served by the company to concerned on the competitor companies policy.

The problem related to the financial department of the company like costing control system; computerize accounting procedure of the company to manage about the profit and loss. These problems are related to the financial management of the company.

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From the above problem, we can say that one person cannot handle all problems. So that all company need various department to handle this various transaction of the company. The main objective behind the departmentation is to decide the work of different person by arranging departments in the company.

ORGANIZATION HEIRARCHY Chairman

General Manager

HR Manager

Production Manager

Finance Manager

Marketing Manager

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Asst. Manager / HR Officer

Asst. Manager / Purchase In charge

Asst. Manager / Accountan t

Sales Manager

FUNCTIONAL DEPARTMENTS PEOPLE


There are 7 employees in hr department and on the whole there are around 110

employees working in Hoskote. The hr manager is Mr. Ram mithal who has been working for SUNIL AGRO FOOD LTD for nearly 3 years.

QUALITY POLICY
We will strive to train all our people develop an obsession for quality in all aspects of work in our organization. We are committed to implement good manufacturing practices and to achieve continuous improvement in the plant, process and distribution chain.

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We ensure full compliance to all government regulatory norms and strictly adhere to the internal standards of the quality and hygiene.

Each and everyone in the organization is responsible for quality. The unit head is accountable for implementation of the quality policy and guidelines.

The quality policy is implemented uniformly across all manufacturing units. The corporate quality assurance will provide necessary support and guidance for the up gradation of the procedure and standards.

1 PRODUCTION DEPARTMENT 1.1 INTRODUCTION:


Production is defined as arranging the manufacturing resources for the purpose of conversion of raw materials into finished product of optimum quality and minimum cost. Thus production is the systematic step-by-step conversion of raw materials through creation of utility in goods. Manufacturing of goods is a highly complex process. Goods in the stock which are ready to sell do not just happen they are the end results of careful planning and control. The company makes the best use of man, materials and machinery for the purpose of economical delivery of quality goods to the customer.

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Production management is concerned with decision-making process related to the manufacturing process. It makes the best utilization of raw materials by necessary processing on it and converts it into utility. Production management is concerned with planning, organizing, controlling and co-ordination the manufacturing process, so that resulting goods or services is reduced according to the expectation.

1.2 HIERARCHY OF PRODUCTION DEPARTMENT Production Manager

Processing Manager

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Foreman

Labor

1.3

ROLES AND RESPONSIBILITIES OF PRODUCTION MANAGERS:


Planning and scheduling production activities and supervising the production process. Making sure the good quality production of products on time. Ensuring maintenance of cost effective and high-standard production. Ensuring the effective management of production lines of an organization. Estimating production costs and determining the high quality standards. Taking decision regarding the operating units layout, size and range of service or product to deliver and design and arrangement of work processes.

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Selecting and maintaining equipments, supervising product standards and enforcing quality-control programs.

Working with managers effectively to execute the policies and goals of the organization.

Supervising and inspiring team of workers and reviewing the work performance of subordinates.

1.4 PRODUCTION PLANNING


Production planning involves the organization of an overall manufacturing system to produce a product. The various activities involved in production planning are designing the product, determining the equipment and requirements, designing the layout of physical facilities and materials handling system, determine the sequence of operations and the nature of the operation to be performed along with time requirements and specifying certain production quality and quality levels. Objective of the production planning is to provide a physical system which provides a set of operating guideline for efficient conversion of raw materials, human skills and other inputs into finished product.

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How SUNIL foods make their production plan? 1) Market requirements: First of all the production manager gets the information regarding to the requirement of the product in market for a particular time period. This information is given by marketing department. In SUNIL, the marketing manager performs this activity. 2) Product specification: From the information of marketing department, which product should be produce more or which should be less can be decide. This can help to clear the target customer. This also helps in getting customer satisfaction. 3) Material requirement planning: For a manufacturing company to produce end items to meet demand, the availability of sufficient production capacity must be co-ordinate with the availability of all raw materials, of all raw materials. In SUNIL, the main raw material is Wheat for producing Maida (Wheat Flour), Sooji (Semolina), Atta (Wheat Resultant Atta), Bran (Wheat Bran). 4) Finalizing the production plan: This is the last step of production planning. Here whole production plan is approved by upper level managers. In SUNIL, Mr. Pramod kumar takes the decision of the finalizing the production plan.

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1.5 PLANT LAYOUT


Definition of plant layout: Plant layout is physical arrangement of various buildings, production departments, technical utilizes and location of various machines within each production department. The process of preparing plant-layout or a new manufacturing or service set-up is called plant layout design. Depending upon the nature of production activities, there are two method of clustering production activities or two methods of preparing department layout: 1) Product layout

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2) Process layout

1) Product layout: Here all the equipments & personnel engaged in production of single goods or services are placed in a single department. Here, necessity is to manufacture one product continuously.
Fabrication line for part D

RM stores

Receiving

Packing & shipping

Fabrication line for Part C Fabrication Line for Part B

Finished goods store

WC1
Fabrication line For part A

WC2

WC3

WC4

TEST

Assembly line for product

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RM=Raw Materials.

WC=Work Center.

Work Center 1: Work Center of Sooji (Semolina), Work Center 2: Work Center of Maida (Wheat Flour), Work Center 3: Work Center of Atta (Wheat Resultant Atta), Work Center 4: Work Center of Bran (Wheat Bran). Above diagram shows the plant layout of Sunil Agro Foods Products. First of all the raw material Wheat, comes from the FCI (Food Corporation of India) godowns. Then it takes to the work centers for processing. After the processing on raw material, the finished good takes to the laboratory for checking. After testing the product it is taken to packaging.

2) Process layout: In process layout, all the equipments & personnel engaged in unique process, one which is carried out during the course of producing many goods & services, are placed Truck unloading dock similar operations on various products or inputs. Automatics Packing and shipping Inward shipping goods stores Truck loading dock in a single department. Here, each set of machinery or each department will carry out Grinders

Planers

Center Inspection Area

Heat treatment shop

and shipping

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Machines Raw Finished material holding store Goods storage Electronplating shop Assembly Turning shop (Lathes) Painting shop

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1.6 ACTIVITES OF PRODUCTION DEPARTMENT:


a) Production planning b) Material requirement planning c) Inventory management d) Quality control e) Packaging

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f) Transport to Market place

a) Production planning: Production planning involves designing the product, determining the equipments and capacity requirements, designing the layout of physical facilities and materials handling system, determine the sequence of operations. This is the heart of the production process. Without production planning other process cannot be done in production process. So it is the important feature in production.

b) Material requirement planning: After product specification, a production manager shall start worrying about availability of various inputs. One necessary input is various type of materials. For that purpose, they need to combine two types databases. The first is production plan of various products and the second is a document called bill of material.

Bill of material-

Bill of material is nothing but a document showing quantities of various inputs(raw materials, packing materials) needed to manufacture finished product.

c) Inventory management: In any organization storage of finished goods and raw material is very important. For this activity there is a separate department which is called inventory management department. Although there is a separate

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department for material management and purchasing in large organizations. The levels of inventory are usually depended upon how accurately production plan is executed. Sunil Agro Foods maintains its inventory by using computerized system. And also, set the level of all products. d) Quality control: Quality refers to the sum of the attributes or properties that describe a product. But quality control refers those activities which assure that quality creation is performed in such a manner that, the resulting product will perform its intended function. Sunil Agro Foods are committed to ensure consistent supply of clean and good quality products to achieve highest level of customer satisfaction. They will achieve this by continuous training of the producers, members and by continuous monitoring and up gradation of producers and processes.

e) Packaging: Packaging is an essential part of a product and packaging design and product design go hand with equal importance. Packaging design must take into account the objectives of packaging such as protection and promotion of the product. Attractive packaging enhances the sales appeal of product in case of customer goods. Sunil Agro Food products come out with attractive packages. There are different packages for different products.

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f) Transport to market place: Transportation of goods to market with safety is very important. Production department has responsibility to transport their product to their distributors without any damages. Sometimes products are damaged during the transportation.

1.7 PRODUCTION PROCESS OF SUNIL AGRO:

As wheat is the main Raw Material for the Sunil Agro Food Ltd. SUNIL processes variety of wheat products like Maida (Wheat Flour), Sooji (Semolina), Atta (Wheat Resultant Atta), and Bran (Wheat Bran). The production of Sunil Agro is achieved by using the best quality wheats which are combined and blended, a task which requires great skill and experience by the miller. The process starts with the delivery of wheat to the mill. After weighing, the wheat is tested in our laboratory to ensure it is of the desired quality. Each consignment of wheat has random samples taken using a 'spear', a hollow rod which is inserted into the wheat in several places, to ensure that the representative samples. In the laboratory each load of wheat is tested to ensure that it meets the required specifications: moisture levels, impurities, density of the grain, enzyme activity, protein content and quality. Any consignment of wheat failing to reach the rigid quality standard is rejected, as this would impair the quality of the flour.

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Before the milling process starts the wheat must first be cleaned. Magnets remove any ferrous metal objects, stones and other foreign objects are also removed. Currents of air remove the dust and chaff. Our new 'color sorter' separates impurities from wheat by color and so reducing the overall product waste and improving flour quality (especially stoneground and organic flours). The wheat is then ready for 'conditioning'. Which is the dampening with water until the desired moisture levels are reached. This softens the outer layer of the wheat and helps release the 'endosperm', the white centre of the grain, from which flour is made .

Roller Flour Mill: Wheat after cleaning and conditioning are taken to individual A & B mills each having grinding capacity of 175 T per day. The mills have 100% imported machines in A mill and 60% imported machines in B mill.

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Roller Flour Mill

Roller Mills

Purifiers

Plan-Sifters

Pneumatic Handling System

Milling Technique s

Operations in Roller Flour Mill:


i. ii. iii. iv. Roller Mills - Breaking, Sizing and Grinding. Purifiers - Grading and Purification of Stocks. Plan-Sifters - Grading of Stocks into various fractions and for extraction of flour in stages. Pneumatic Handling System - Sifting of stocks from ground to the top floor using high pressure fans and filters.

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v.

Milling Techniques - Extraction of various finished products as Maida, Sooji, Resultant Atta, Wheat Fine Bran and Bran Flakes by gradual particle size reduction.

1.8 STORE DEPARTMENT IN SUNIL AGRO:


There are two-store department in Sunil Agro Foods Ltd. A. Store department for Raw Material. B. Store department for finished goods.

A. For Raw Material: Whenever the production department needs something from the stores stock it sends person with show the quantity demand and will be signed by authorized person of that department. The store in-charge will provide the demanded stock and make an entry in the bin card which shows the quality received and stored. B. For finished goods: Whenever the production process is completed, the finished goods are sent to the store department, with the permission of

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production manager. The store in-charge checks the production and then makes an entry in his register about the received and stored.

1.9 HACCP CERTIFICATES:


The Hazard Analysis and Critical Control Point, also known as the HACCP, is a system of safety in food production and pharmaceuticals. The system is used by the Food and Drug Administration and the Department of Agriculture to ensure safe procedures and products. An HACCP auditor is an individual who is aware of the steps of the prevention system. To enter the profession, you must become certified.

2. MARKETING DEPARTMENT 2.1 INTRODUCTION:


Human needs are unlimited. The aim of business activity is to acquire wealth, then to convey it into desired forms and to make the final product available for exchange for the satisfaction of human needs. These all activities fall under industry, commerce and trade. These three branches have one common function i.e. exchange function. This important and powerful function is known marketing.

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Marketing is a social management process by which individuals & groups obtain what they need & want through creating, offering & exchanging products of value with others.

2.2 HIERARCHY OF MARKETING DEPARTMENT Management People

Asst. Executive Officer

Senior Executive Officer

Junior Executive

Sales man

2.3 ROLES AND RESPONSIBILITIES OF MARKETING MANAGERS:


Marketing managers need to have a good knowledge of the customer. Marketing managers develop the firms marketing strategy in detail.

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Develop pricing strategy to help firms maximize profits and market share while ensuring that the firms customers are satisfied.

Marketing managers work with advertising and promotion managers to promote the firms products and services and to attract potential users.

Marketing managers should have full information of change in market so that he can make changes in product accordingly.

Ensuring timely delivery. Retaining valuable customer to the company.

2.4 OBJECTIVES OF DEPARTMENT:


Increase the yearly sale of Sunil Agro products by 10 percent in comparison of last year. To monitor the internal and external customers satisfaction level. Arrangements to supply market information to the farmer.

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2.5 STRATEGIC FOCUS OF SUNIL AGRO:


Customer & market focus: Relationship, Awareness & product availability as per their need and timely competitors Watch, own agents relationship, market research. Quality Focus: Continuous Improvement in quality as defined by customers.

2.6 MARKETING MIX


Definition of Marketing Mix:

Marketing mix is a set of marketing tools that the firm uses to achieve its marketing objectives in the target market. Marketing mix classified into four groups as under:1. Product 2. Price 3. Place (Distribution)

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4. Promotion

Marketing Mix

Product

Price

Place

Promotion

Label Returns Warranties Variety Quality Design Packaging

List Price Discount Allowances Credit terms Payment periods

Coverage Location Assortment Transportation Inventory Channels

Sales promotion Sales force Advertising Direct marketing Public relations

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Features Size Service Brand Name

1. Product A product is anything that can be offered to a market to satisfy a want or need of customer. Sunil Agro are producing the product like Maida (Wheat Flour), Sooji (Semolina), Atta (Wheat Resultant Atta), Bran (Wheat Bran).

2. Pricing Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Price is perhaps the easiest element of the marketing program to adjust; product features, channels, and even communicates take more time. Price also communicates to the market the companys intended value positioning of its product or brand.

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Sunil Agro Food product use Cost based pricing method because simple system, socially fair, no price war among competitors, safe recovery of cost guaranteed, reasonable system in changing situation. Sunil Agro Food product is made on the basis of cost of production plus an additional margin of profit, i.e..., selling price is equal to cost of production plus anticipated profit.

3. Place (Distribution) Channel of Distribution: Meaning of Marketing Channels Most producers do not sell their goods directly to the final user; between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel. (Also called a trade channel or distribution channel)

Marketing channel has two strategies 1) Push strategy 2) Pull strategy

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Sunil Agro product adopt Push strategy because the manufactures sales force, trade promotion money or other means to induce intermediaries to carry, promote, and sell the product to end users. Distribution channel: 1) Title Flow

Suppliers

Manufacturer

Dealers

Customer

2) Payment Flow

Suppliers

Manufacturer

Dealers

Customer

Distribution network: The producer and the final customer are part of every channel. They will use the number of intermediary levels to designate the length of a channel. The channel levels have total four levels.

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1-Level

2-Level

3-Level

4-Level

Manufacturer

Manufacturer

Manufacturer

Manufacturer

AgentMiddlemen

Dealer

Dealer

Retailer

Retailer

Retailer

Customers

Customers

Customers

Customers

Sunil Agro Food product has 2nd level of distribution channel.

Unit (SUNIL)

Distributor (SUNIL)

Retailer

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4. Promotion Marketing communication are the means by which firms attempt to inform and remind consumers directly or indirectly about the products of the firm.

2.7 LIST OF COMPETITORS:


1) ADF Foods Ltd. 2) Agro Dutch Industries Ltd. 3) ANS Ltd. 4) Apis India Ltd. 5) Bambino Agro Industries Ltd. 6) Britannia Industries Ltd. 7) Chordia Food Products Ltd.

2.8 MAJOR CUSTOMERS:


The Companys clients include worth naming corporate clients like

M/s. Britannia Industries Limited MTR Foods Limited

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ITC Foods Limited TTK Health Care Limited Nilgiris Goodbread SPV Foods Polykrop and other Bakeries

Confectioneries and many big, small wholesale customers.

2.9 MARKETING POLICY:


Based on overall company goals and direction, marketing managers develop new marketing strategies to promote the company's products, services or image. They also evaluate and analyze the effectiveness of these strategies by looking at the impact they had on market share and consumer perception. They also establish pricing strategies, create and evaluate budgets as well as make projections on return on investment. Marketing managers identify the different distribution channels they will use to make a product available to consumers

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3. HUMAN RESOURCE DEPARTMENT


3.1 INTRODUCTION OF DEPARTMENT: HR department is the key department of the any business. Human Resource department is the main part behind the companys success or failure. Its aim is, to

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bring and develop an effective organization. Human Resource Management is that part of management which is concerned with people at work & their relationship within the organization. The term Human Resource Management refers to the management of personnel in the organization of any company to achieve the predetermined goals. The duty of the personnel manager is to look after the personnel department and various functions of the personnel like recruitment, selection, promotion, transfer, etc Human Resource Management is a continuous process, it cannot stop. Human Resource Management is a never-ending process. it helps in achieving of company. This is done by proper perform of Human Resource function like recruitment, selection, training & development, labor activity, motivation, welfare etc. it also helps to keep a smooth relationship between employers & employees. Sunil Agro believes that the most significant resource is its Human Resource and SUNILs success in the long run depends very much on the quality of its human resources. Human resource comprise the aggregate of employee attributes including knowledge, skill, experience and health, which are presently available to the organization for the achievement of its goal, objectives and service to the society.

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3.2 HIERARCHY OF HR DEPARTMENT:

HR Manager

Assistant Manager

Junior Assistant Manager

Co-ordinator

3.3 RECRUITMENT:
SUNIL does not have a well-defined recruitment policy. Recruitment is basically done by HRD department in consultation with the concerned department for which new employee is required. It is not a regular event as recruitment is done only when there is any vacancy or some requirement comes up in the organization. All the new employees must meet the minimum experience and qualification criteria as set by Human Resource department.

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Recruitment Process: It is process of finding and attracting capable application for employment. The process begins when new recruits are sought and their applicants are admitted. The result is pool of application from which new employee are selected HR Department receives application. Locating and developing the sources of required number and type of employees. Identifying the prospective employee. Communicating the information. Generally, two types of Sources are in the Organization: 1. Internal Recruitment: Internal methods means to recruit the employee from within the company, some internal methods are as follows: a) Promotions. b) Job posting.

a) Promotions: This method is used to fill the vacancies from within the organizations through promotions. When vacancies arise the company recruits people from within the organization.

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SUNIL is following the promotion system. The company gives promotion to the employees from lower level to higher level. As per the industrial act, if a person remains on such rolls for 240 days or more, he will get a status of permanent employee, and he is also entitled to all relevant benefits.

b) Job Positing: This is the way used by Sunil Agro Food Ltd to hire people from within the organization. Under this, the company publishes job openings on bulletins, boards, electronic media and other similar outlets. The main aim of the company is to use this method because it offers a change to highly qualified applicants working within the company to look for growth opportunities within the company without looking for green pastures outside.

2. External Recruitment: a) Direct Interview: By giving advertisements in Newspaper. b) Employment exchange: These agencies are providing a wide range of services, counseling assistance in getting jobs, information about the lobour market, labour and wage rates. SUNIL is connected with Bharat Helpline for employment exchange. Employee exchange charges one salary of the employee from the company.

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Induction: Induction means to receive and welcome the new employee when they first join the company and also give some basic information of the company to the employee, so he starts his work soon and he also aware about the companys environment as soon as possible.

Sunil Agro Food Ltd does also have induction training. Some reasons for that are as follows: Workers become aware of companys environment. The fear can be removed. Workers become aware about the companys rules and regulations. One will come to know about the location of various plant and machinery. To receive induction it is very valuable for workers.

3.5

ROLES AND RESPONSIBILITIES OF HR MANAGERS

To formulate human resources strategic planning according to the development of the company.

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To collect ideas and suggestions of staffs regularly. To develop the recruitment system, salary assessment system, training system, personnel management system.

To establish smooth communication channel between company and subsidiaries and keep abreast of the views and ideas of staffs.

To organize the assessment of staffs and handle complaints against examination results.

Keep HRM Function responsible for developing the Human Capital potential in the organization.

To establish the company's annual salary adjustment programs and review the monthly salary of employee.

3.5 TRAINING AND DEVELOPMENT SYSTEM:


Need for Training: To minimize the time gap in learning new development.

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To equip the participants with requisition ability so that they can work with minimum supervision.

To enable employees to update their knowledge and increase the level of performance on their present job assignment as well as canalize there inherent potential, in order to make him holistic person.

To foster initiative, self confidence and to overcome manpower obsolescence occurring due to age, temperament, lack of motivation or inability of person to adapt to changes.

3.6 PERFORMANCE APPRAISAL SYSTEM


Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job. After recruitment organization gives specific project to the employee to train them. After completion of this project, it is checked by the authorized person of the department if the employee do not perform well then they are terminated form the organization, Performance Appraisal System is still in rudimentary stage in SAFL. However the silver lining is that in order to make system transparent and open, evaluation is cross-checked with the employee by HRD people and in case of some difference try to solve out the problem.

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3.7 WELFARE FACILITIES


The main activities of this department are selection, training, recruitment, and welfare activities. To diffuse the effect of Global Competition, SUNIL has adopted the latest concepts of management practices and provided appropriate training with the help of leading institute from time to time for up-gradation & development of its Human Resource. Some of the efforts of SUNIL to achieve this are: Facilities given by SUNIL to their employee:

1. Store & drying facility: The full time workers are given Human Resource lockers to store their things and also facility for drying cloths. 2. Rest room: It is also provided to take rest during the lunch hours. 3. First aid facility: It is given for quick remedy of employees. For e.g. when any accident occurs during the working hours of the organization. it requires quick remedy. 4. Vehicle parking space: It is provided for employee, worker and visitors separately.

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5. Accommodation: Organization is providing township & accommodation facilities to employees. 6. Uniforms and Shoes: Uniforms and shoes are provided to all workers.

4. FINANCE DEPARTMENT

4.1 INTRODUCTION OF FINANCE DEPARTMENT: Finance is the blood of the business. Finance Management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. Finance Management is the most important activity of the firm and it means that the firm secures capital, if needs and employees it. Finance Management is mainly concerned with raising fund in the suitable manner using the funds as profitably, planning future operations and controlling current performances and future developments through financial accounting, cost accounting, budgeting and other functions.

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SUNIL require a lot of funds for meeting its working capital needs and other obligations. It manages its working capital needs through internal funding only. There is regular, assured and smooth inflow of cash from products sales from the distributors to firms Cash Collection Center on day-to-day basis. However, for the expansion work and setting up new projects, it takes loans from banks and other financial institution.

HIERARCHY OF FINANCE DEPARTMENT: Managing Director

Assistant Manager

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SOURCES OF FINANCE:
In the Sunil Agro Food Ltd requirement of finance is fulfill by getting working capital. For Working Capital requirements:

To meet the needs of working capital SUNIL makes transactions from the following banks. HDFC Bank. State Bank of India. Syndicate Bank. Karnataka Bank.

Sunil Agro had taken loans from HDFC Bank and Karnataka Bank as a source of finance. They have also taken cash from Banks. They have also invested some funds in LIC of India for long term purpose.

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Shareholding pattern of Sunil Agro Foods Ltd:


Holder's Name Promoters General Public Foreign NRI Foreign Institutions Other Companies Others No of Shares 2100676 663984 153429 40000 39799 5012 % Share Holding 69.95% 22.11% 5.11% 1.33% 1.33% 0.17%

The shares of Sunil Agro Food Ltd is Listed as following indices Bangalore Stock Exchange Ltd. Madras Stock Exchange Ltd., The Stock Exchange, Mumbai.

PAYMENT PROCESS:
1. Collection of sales bills & sales data 2. Data verification with sales information 3. Feed concern data in computer 4. To pass duration entry to the company

To the SUNIL AGRO FOOD LTD: Finance department will make payment on the base of certified & approved bills.

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1. Receipt of Raw Material collection data. 2. Verify the data with concern department. 3. Feed all the data in computer with oracle support. To the Transporters: Every bill by the concern department authority, they have to give justification for any expenses and then finance department will make payment to the transportation for any expenses and then finance department will make payment to the transporters on the bases of certified & approved bills.

INVENTORY MANAGEMENT:
For many business firms, inventory is one of the visible and tangible of doing business. Raw Materials, work in process and finished goods all represent various forms of inventory. In simple words, inventory refers to stocks of goods necessary to do business. In fact, inventory is both an assets and a liability. Too much inventory consumes physical space, causes of financial burden, and increasing the possibility of damage, spoilage and loss. On the other hand, too little inventory disrupts manufacturing operations, engenders chaos on the shop floor, poor customer service.

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Type of Inventory:1) Raw Material Inventory: These are goods which have not yet been committed to production in a manufacturing firm. They may consist of basis raw material. 2) Working-In-Process: This includes those materials which have been committed to production process but have not yet been completed. 3) Finished goods: These are completed products waiting for sale. They are the final output of the production process in manufacturing firms. 4) Supplies: These materials are of low value & they do not enter the production process. 5) Scrap: The waste of materials arising during manufacturing process is also a part of the inventory. Even defective pieces to be disposed off are a part of in inventory.

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SWOT ANALYSIS

Strengths: Low land cost, Lot of land available for industrial set-ups. The management of SAFL is very professional. SAFL has long standing reputation in the Food Market. Staff of SAFL is very hard working and co-operative. Skilled employees staff. Good communication facilities available between middle level management and lower level management. Hard working and low cost labor. High production capacity of SAFL leads to low production cost. SAFL has extra land and fully developed infrastructure facilities so it can be further developed.

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Thus, we can say that the position of SAFL in Food Market is satisfactory.

Weaknesses: Lack of skilled manpower. Scarcity of primary raw material. Remuneration less attractive for talent in comparison to contemporary disciplines. Low availability of new reliable and better accuracy instruments and equipments.

Opportunities: Opportunities available for setting up resource based industries as its still in the budding stage. Look for newer market with diversified product. Scope for Tourism Industries. Vast domestic market.

Threats: Loss of trained manpower to other industries and other professions due to better working conditions prevailing there may lead to further shortage of manpower.

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Rising competitors in Food Market.

MISSION To generate a climate of loyalty and mutual respect among employees. Trying to increase sales on through expansion of markets. Trying to reduce production cost.

VISION To produce quality products to satisfy the customers. To develop market opportunities by creating new and innovative products. Aspire for and achieve leadership in existing areas of operation, simultaneously raise resources and capabilities to move into new areas.

Objectives of Sunil Agro Foods


Minimize product losses, Add maximum value, Achieve high quality standards, Keep processing cost low, Ensure that a fair share of added value goes to the Producer.

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National plan for improvement and extension of agro-processing technology at farm, traditional small industry and modern industry levels should be prepared. The plan should take into account the diversity in resources and needs of different regions in the Country.

FINDINGS:

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Due to high standard of quality maintained by the company, its production cost is relatively high so that company facing a serious problem and wants to reduce the price.

The companys various operations on raw material performed in sequence and the machines are placed along the product flow line. Because of this, the companys products get completed in lesser time and also have smooth and continuous work flow.

Company is earning profit on continuous basis. Company concentrate all over the market. The company maintaining 0% wastage. Promotional expenses is very less WIP focus on quality. It deals with business to business and business to customer.

SUGGESTIONS:

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SAFL should focus on their marketing strategy to make the customers aware their products in market. They have to appoint more marketing executives and salesmen for fulfill the need of marketing department.

They should try to diversify business. Their financial position is very weak; to improve their financial position they should adopt a good financial strategy.

Expand the area of operation. More advertisement is requiring at state and country level. Company should attract the market more vigorously and going for trapping more and new customer.

The production planning should be done according to the demand so that there should not be over stocking.

CONCLUSION:

From the study conducted. I reached to the following conclusion, SUNIL AGRO FOOD LTD (SAFL). Is performing very well as per the research done. Most the factors are being taken care very well, which makes SAFL is one of the best food producers in the market. With the creative and innovative culture of the company it

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has been successful in creating a very nice image in the minds of customers. The organization structure of the company is also considered as the most important part, which helps them to meet their growth in business. The company gives more important to the quality and quantity of the product. Each product is strictly verified in the laboratory. As per the customers most of them are satisfied with the company and the products offered by it. The sales executive who keep the direct contact with the customer are performing very well. From the study conducted, it can be found that there are some areas where the company should concentrate and improve on the same.

BIBLIOGRAPHY:
Marketing Management: Philip Kotler ; Prentice Hall. Human Resource Managemenbt: K. Ashwathappa ; Himalaya Publication in 1999. Production and Operations Management: K. Ashwathappa ; Himalaya

Publication in 1999.

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Organization Behavior: k. Ashwathappa ; Himalaya Publication in 1999. Annual Record of SAFL.


www. sunil agro. In

Magazine: Business world. Business Today.

ANNEXURE:

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Name A V S Murthy Anand Tamirisa B Shantilal B Shantilal M Srinivasa Rao S Promodkumar Shailesha Siroya

Designation Director Secretary CEO Managing Director Chief Finance Officer Executive Director Director

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