An Organizational Study in Devicolam Distilleries LTD

An Organizational Study In Devicolam Distilleries Ltd
CHAPTER 1
INTRODUCTION
Jai Bharath School of Management Studies
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1.1 GENERAL INTRODUCTION

Organization study for Students of Master of Business Administration is focused
specially with a desire to make them exposed in the manufacturing industries.
Through this program students get an opportunity to get hands on industry
exposure and engage in meaningful work experiences. The main objective of the
program includes understanding and implementation of the practical complexities
between theoretical and real time executions of the management concepts. This
program serves as an effective source for potential employment opportunities to
their company after the student completes his formal college studies
An organizational study includes the structure and functioning of every
department of an organization the structure is very important for its proper
functioning and growth. Organization as a structure refers to the network of
relationships among individuals and positions in an organization. Organization
structure is the structured framework within which the efforts of different people
are co-ordinate and related to each other. It is a blue print of how management
will like the various activities and functions to be performed.
An organization is a planned co-ordination of people and their activities for the
achievement of the organizational goal through division of labour work,
specialization and hierarchy of authority. It is an essential part of human life. We
born in organizations educated and spend most of our lives working for
organization. So everyone wants to know what role does it plays in management.
Organization is a social unit of people, systematically arranged and managed to
meet a need or to pursue collective goals on a continuing basis. Sound
organizations can contributively greatly the continuity and success of the
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enterprise. All organizations have a management structure that determines
relationships between functions and positions.
Without proper care at higher, middle and lower level of administration it would
be practically impossible for any management to run the organization smoothly.
The better the organization, the fuller would be the achievement of the common
objective. Hence the study about an organization is of great importance. It helps
to understand the organization better and can become familiar with its functions.
The study is conducted to identify the organizational performance of Devicolam
Distilleries Ltd, Cochin. The study helped to identify the functions of various
departments. i.e. , Human Resource, Accounts & Finance, Special Project &
Development, Maintenance, Marketing, Quality Assurance, Dispatch & Purchase,
and Stores of the company.
An organizational cab is structured in many different ways, depending on their
objectives. The structure of an organization will determine the modes in which it
operates and performs. Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entitles such as
the branch, department, workshop and individual. Organizational structure affects
organizational action in two big ways. First, it provides the foundation on which
standard operating procedures and routines rest. Second, it determines which
individuals get to participate in which decision making processes, and thus to
what extent their views shape the organizations actions. It seems that remarkably
early in our lives we become familiar with organizational structures.
The classic management hierarchy appears on an organizational chart early in our
career, but even by then weve already come across the notion in plenty of places.
So in a way it shouldnt be surprising that organization structures crop up
frequently enough in business software too. I recognized many organizational
patterns several years ago and ever since they keep turning up again. A good way
to start thinking about modelling organization structures is to think of the obvious
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way. Imaging a company where people work in departments, which are organized
into division.
Organization study refers to the study of the organization as a whole and getting
familiar with various functional departments in the organization. The study aimed
at getting a clear picture of the organization structure to learn how the authority
flows down the levels of management. Apart from these present operations of the
company, familiarizing the duties and functions of various departments and how
they interact with each other were the objectives of the study and also to get a
practical vision of the organization apart from the theory which have been learned
in the class
The world of business is changing very fast. Experience in the best agency
through which we can learn almost everything under the sun. Therefore the
theoretical knowledge alone will not fulfil the needs of business school students.
As a management student it is very important to know the activities of any
business. In view of this fact the scheme of our MBA course provide an
opportunity to expose the student to an industry and its operational condition.
A business organization is a system which comprises of different departments and
sub departments which facilitate management of day to day operations of an
organization in an effective manner. Departments are also helpful for
classification and distribution of work which actually leads to effectiveness in
business operations without overlapping of business activities. It also enables in
defining the authority and responsibility of each individuals who all are working
in an organization for the achievement of the ultimate goal of the organization.
Usually in a business organization we can see a number departments working for
the organization. It includes finance department, marketing department, human
resource or personnel department, production department, Research &
Development department etc..
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The main functions of finance and accounting department include making
financial decisions, investment decisions, liquidity decisions & budgeting etc
Accounting department is concerned with recording of business transactions in a
systematic way in
order to ascertain the financial position and profitability of the business by
preparing Profit and loss account and Balance Sheet.
Sales & Marketing department is concerned with identifying the changing
consumer needs and wants and providing goods and services in order to satisfy
those needs and wants. It is usually said that marketing starts and ends with
consumer.
Human resource is the biggest asset and liability of a firm. So at most care and
diligence is required while dealing with human resource of an organization.
Human resource department is mainly deals with manpower planning, selection,
training and development, promotion, transfer, counselling, maintaining good
industrial relations etc So it is a humble attempt to study the working of an
organization in a real life situation and how the department enables the
organization in achieving its goals.
This organization study is completed at Devicolam Distilleries Ltd, Cochin
Kerala. This organization study has been carried out to get a general idea about
the functioning and structure of the organization. This study helped to interact
with the managers of different departments and to experience the functioning of
the organization.
The information collected with different levels of personals of the organization.
The major data is collected from the top personals of the various heads, the
middle level management and supervisor staff of the organization. This
organization study is confined to 30days.
About The Internship:
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DEVICOLAM DISTILLERIES LTD is a private limited company. The internship
is aimed at covering the functional departments of the company. It is to make
aware about the various operations in the organization. The study is mainly based
on details collected from each department. Each and every activities of the
company is studied carefully with the data available. The data is available from
various sources like past records of the organization, direct interaction with
concerned persons and by personally visiting each department. The study helps in
obtaining practical experience of the operations in the organization.
DEVICOLAM DISTILLERIES LTD is a private limited company, so it is not
easy to get permission for doing internship in the company. But I got the
permission as a special case, with the help of one of my family friends working
there in the production department. There is no formal interview for the purpose
of internship in the company.
Significance of the Study:
Having become the most prevalent debates in the recent years, the organizational
studies have become a major topic of study now a day. Organization is defined as
A consciously coordinated social unit, composed of two or more people that
functions on a relatively continuous basis to achieve a common or a set of goals.
So we can see that individuals, walking under the flag of organization are
valuable resources to the firm. It is totally impossible to find an organization
without manpower. So, as long as organizations are consisted of individuals, it is
very important to know and learn about those fundamental elements of the firms
and that is the reason the concept of organizational behaviour is a major field of
study these days. Organizational behaviour defined as a field of study that
investigate the impact that individuals, groups and structure have on behaviour
within organization, for the purpose of applying such knowledge toward
improving an organizations effectiveness. Or in other words, it is the study of
what people think, feel and do in and around organizations
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1.2. OBJECTIVES OF THE STUDY
OBJECTIVE
To study organizational and functional department of the Devicolam
Distilleries Ltd.
To know about the production and distribution methods.
To study about different department in the organization
To interact with the managers at different level and understand their
responsibilities.
To gain knowledge about the business strategies adopted by the company.
To understand about the organization structure and production process.
To examine about the various marketing activities of Sales/Marketing
department.
To understand about the different policies taken by the organization.
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1.3. METHODOLOGY
Methodology means all the methods and techniques that are wed for conducting
researching. It is a way to scientific and systematic research for potent
information on a specific and solves the research problem and help in arriving
solutions, by relating available data with unknown aspects of the problem. In any
research, different methods are used to arrive at the results of the study
conducted.
Exploratory research has used to collect the data relating to the topic under the
study. It has been carried out by two main sources of information. They are:
1. Primary Data
2. Secondary Data
Primary Data
Primary data means the first time information collected by researchers. It is based
on his objective. It includes
Observation
Interview with officials etc.

Secondary Data
Secondary data means the data which has already been collected by some other
persons at some other time for other purpose.
Important source of secondary collections are
Books
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Internet
Project reports
Period of the Study: The study has been conducted at Devicolam Distilleries
Ltd Cochin during the period of July 9th to 9th August.
1.4. LIMITATIONS OF THE STUDY

The study had its own limitations too. Following are some of the limitations of
the study.
Even though the workers rendered their help to assist me to collect data, I could
collect only limited data without disturbing their work which has affected my
elaborate study.
Time constraint prevented the complete collection of data.
Since permission is restricted to the trainee in the production department, the

frequency of visit inside the department was limited.
Even though the employees co-operative because of their busy time schedule they
were not able to contribute more.
Each department is busy with their own functions, duties and responsibilities only
little time is available for interviewing respective heads.
Since each department is busy in their work only little information were available
from their staff also.
Some employees are unwilling to reveal the information regarding their role in
the company.
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CHAPTER-2
PROFILE
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2. INDUSTRY PROFILE
A conglomerate is a combination of two or more corporations engaged in entirely
different businesses that fall under one corporate group, usually involving a
parent company and many subsidiaries. Often, a conglomerate is a multi-industry
company. Conglomerates are often large and multinational.
A corporation that is made up of a number of different, seemingly unrelated
businesses. In a conglomerate, one company owns a controlling stake in a number
of smaller companies, which conduct business separately. Each of a
conglomerate's subsidiary businesses runs independently of the other business
divisions, but the subsidiaries' management reports to management reports to
senior management at the parent company. The largest conglomerates diversify
business risk by participating in a number of different markets, although some
conglomerates elect to participate in a single industry.
History has shown that conglomerates can become so diversified and complicated
that they are too difficult to manage efficiently. Since the height of their
popularity in the period between the 1960s and the 1980s, many conglomerates
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have reduced the number of businesses under their management to a few choice
subsidiaries through divestiture and spinoffs.
Breweries Industry
In India, drinking has remained a bad word, clubbed with the other vices. While
the beer and liquor market continues to grow at an impressive rate even against an
economic recession, the social stigma remains in place, which manifests itself in
anti-growth state policies.
However, the Rs. 60.0 Billion organized beer and liquor industry has been
growing at an impressive rate. In sharp contrast to the trend the world over, beer
is losing ground to hard liquor in India.
Amidst beers, the current trend is that lager beer is giving way to strong beer.
Even as the liquor manufacturers could hope to garner the people who are shifting
from beer to liquor, there is a vast country liquor market and a sizable grey
market to contend with.
United Breweries (UB), Shaw Wallace and McDowell (part of the UB Group)
presently dominate the liquor and beer market. The market on its part is set to
undergo a sea change with the arrival of MNCs. The removal of quantitative
restrictions (QRs) on the import of bottled alcoholic beverages only makes the
competition tougher. The MNCs looked forward to good business after the
removal of QRs but the Government nullified it by slapping new taxes. The
foreign bottle, therefore, remains as costly as ever.
Beer industries
In India there are many Beer Industries both Indian Industries and Foreign
Industries (FDIs) are serving in India, some International Industries serves in
India by having acquisitions, strategic alliance with Indian Brewing Industries.
Some multinational Indian brewing industries are also serving in foreign
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countries their Head Office is in India but they serves in India and foreign both
countries. Some foreign companies established their Head Office both in India
and in their country.
Some Breweries Industries in India are as under:
United Breweries Limited
Mohan Meakins
Radico Khaitan
United Breweries Limited is the India based breweries and spreading all over the
world with successful brand name Kingfisher. This brand 'Kingfisher' has been
ranked amongst the top 10 flashing raising brands in the UK Another subsidiaries
of UB Group United Sprits Limited is also spreading all over the world with
brand name McDowell's, McDowell's No.1 is the largest selling brandy all over
the world. The policies of United Breweries are suitable for Indian market and
that is why this company has got a grand success with in 10 years. If this
company is interested to operate in some other countries, it has to revise its
policies to get success in another country which will include marketing policies
and pricing policies.
Beer is a popular beverage all over the world and contains alcohol ranging from 8
to 9 %. It is found effective in improving appetite and is considered good for
health. Drinking practices vary substantially among different countries and
different masses. But both alcoholic beverages are very popular among all ages of
people. The alcoholic drinks market is broadly classified into five classes, starting
from beers, wines, hard liquors, liqueurs and others. The Indian alcoholic market
has been growing rapidly for the last ten years, due to the positive impact of
demographic trends and expected changes like rising income levels, changing age
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profile, changing lifestyles and reduction in beverages prices. Beer and wine are
perhaps the oldest and most popular of all alcoholic beverages in the world.
The Indian beer Industry has been witnessing a steady growth rate of 7-9 per cent
per year for the last ten years. Apart from Kingfisher and Fosters Beer, the other
brands in the Indian market are Carling Black Label, Carlsberg, Dansberg,
Golden Eagle, Haywards 5000,Premium Lager, Kingfisher Strong, Hi-Five etc. to
name a few. India has emerged as one of the fastest growing markets for wine
consumption on the global map. The market is growing at a rate of up to 25% per
annum each year. With a population base of over 1.1 Billion, the consumption of
wine is extremely low, indicating vast potential for future growth. Champagne
Indage has been the pioneer in making French style wine in India. Grover
Vineyards and Sula Vineyards too have made smart strides in a short time span.
Recently, companies in the Indian Made Foreign Liquor (IMFL) space like
Diageo, United Breweries and Seagrams too have ventured into making wine.
Other majors players in this field are United Spirits Ltd, Mohan Breweries &
Distilleries Ltd, Jagatjit Industries Ltd, Empee Distilleries Ltd. Radico Khaitan
Ltd. etc. to name a few.
Kerala Scenario
The product id directly sells to Kerala Beverage Corporation. They have only the
right to sell the product or the licensed agencies can sell the product.
Present Scenario
India presents a huge growth potential for alcoholic beverages sales. The
domestic production of beer and wine is on the rise, especially beer with official
statistics reporting a 12 per cent increase in domestic beer production. Increasing
GDP, favorable growth in the demographics with a growing urban middle class,
growth of modern retail formats, hopeful rationalization of the taxation rules and
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ban on local country liquor and rising health consciousness, age preferences will
act in favor of the growth of alcoholic (beer and wine) beverages in India in the
near future.
To survive in the highly competitive environment, the MNCs as well as the
domestic majors are coming up with various strategies. Acquisitions and alliances
appear to be the order of the day. Several such deals are already underway while
more are in the offing. The domestic majors are also reorganizing their operations
so that they can forge a deal with an MNC if the need arises. For instance, UB,
which recently took up a major revamp, has said it is willing to offer a 25.0
percent stake to multinational liquor major.
Another trend that seems to be catching up is the consumption of Coolers by
the discerning connoisseurs. Coolers is typically a cold drink (or cocktail),
which is often a mixture of white wine and fruit juice. As of now there is no
definitive data available on the consumption front for coolers either globally or
locally. But the fact that this finds mention in most of the wine and recipe related
sites helps us to arrive at the conclusion that the trend of consuming coolers in
its various combinations is indeed catching up.
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2.1 COMPANY PROFILE
His1tory of the company

The Devicolam Distilleries Ltd incorporated as a Public Limited Company in the
year 1938 under Travancore companies regulation 1 of 1092 under the royal
hands of Mr R.Muthusamy, Mr.T.G.Rathnasamy and others. In 2003 the company
was taken over by Cee Cee international, the multibillion-fortune conglomerate in
the firmament of liquor trading and established a state of the art IMFL
manufacturing unit under the control of P.A. Thomas Wilfred, the founder of Cee
Cee Group.
Corporate Profile
DDL is a subsidiary of Cee Cee Holding and the leading distillery in Kerala with
its state of the art manufacturing unit situated at Kakkanad near KINFRA IT Park
in 6.5 acres of land about 30 Kilometer from Cochin airport, 10 Km from
Ernakulam city and 12 Km from Cochin port. The roads are well designed and
interconnected with KINFRA IT/Industrial Park and the location is best suited for
distillery.
The Company is committed to manufacturing of high-level quality IMFL. It
believes in business ethics, total customer satisfaction and inspires trust and
confidence in todays business environment. DDL got ISO 1991- 2008
certification for its quality management system. The plant was expanded to the
capacity of 4860000 CPA in the year 2006 with ultra modern hi-tech and
sophisticated instruments and facilities. 9 semi automated bottling lines with slat
conveyors are installed for attaining high-level production and to ensure the
quality parameters.
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Infrastructures/ Facilities
DDL has got a unique infrastructure with hi-tech instruments and an ample space
factory setup. DDL has the storage capacity of 12 Lakhs litres of ENA with
stainless steel tanks of 314 installed in an area of 2200 square feet. 6 Lakhs
capacity-blending tanks arranged in an area of 2100 square feet are also made of
314 quality stainless steel.
A hi-tech bottling plant is installed in 7200 square feet area with 9 semi
automated stainless steel lines of international standard. Further the bottling hall
is floored with quality 2mm vinyl and also provided with automatic roof
exhauster above the false ceiling in order to control the temperature and humidity
inside the bottling hall.
Bottle washing hall with an area of 2500 square feet is also well equipped, with
most modern auto tumbling machines, which meet with the international
benchmarks. DDL also have a bonded warehouse with an area of 12000 square
feet with modern utensils to move cases in bulk, forklift and overhead crane etc.
2.1.1 VISION
To be premier provider liquor products and became the most preferred planed
among our
Valuable customers.
2.1.2 MISSION
1. To manufacture and deliver superior quality foreign liquor.
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2. To work towards progressive growth and opportunity through constant
innovations and operational efficiency.
3. To preserve integrity in our dealings with customer staff and vendors.
4. To maintain high design of professionalism and fraudulent business policy in all
our undetakings.
2.2 PRODUCT PROFILE

Superior quality product is ensured through exemplary manufacturing practices
and strict quality control. While manufacturing our well-developed brands, we
take extra care to ensure the highest quality of product with all its parameters
OTHER BRANCHES
3 branches Kochi
2 branches Kolkata
1 branch Pondicherry
COMPETITORS
UNITED SPIRITS LTD

MGM Group
Radico Kithan LTD
Amrith Distilleries LTD
Thilaknagar LTD
Over cees LTD ETC
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DDL has established tie-ups with
U.B
Thilakanagar industries
M.G.M
Sarga distilleries
Amruth distilleries
Main raw material name
ENA (Extra Neutral Alcohol)

Grape Spirit
Water
Malt
Caramel
Flavours
FLAVOURS
LEX flavours, Chennai

Flavours India, Pondicherry ETC
CARAMEL
Excel caramel , Pondicherry.ETC
WATER
Kinfra Kochi
ALCOHOL (Extra Neutral Alcohol)
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US LTD
SUGAR
Kolapur Sugar Mills LTD

Natural Sugar Allied LTD
India Glycols LTD,UP etc
BRANDY & RUM
Count Christo vintage brandy
Combination matured rum
Cantonment rum
Scarlet VSOP
Free soccer
Main Bankers
Indian Bank, MG Road, Cochin.

SBI ,Palarivattam
Annual Turnover
75 cores
Capital
14.98 cores
Profit
4%
CLINT MARTEL WILFRED
MANAGEMENT
Board of directors
CLIVE MELINI WILFRED
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CERTINA ROY VAYALAT
Logistics:
Internal movement
Trolley and vehicles are used to move semi-finished goods from one process
station to another process station.
External movement
In case of road transport TSC has made contract with various transport companies
like K.R.S (Kerala Road Ways Ltd) and A.C cargo management. Other mode of
transportation is rail.
BRANDS:
Overview
Devicolam Distilleries Ltd efficiently caters to the increasing demand for
popular brands of Indian Made Foreign Liquor (IMFL) Devicolam Distilleries
Ltd currently produce and supply sand brandy segments. Investing in the latest
technological know-how and R&D, we are expanding our product portfolio to
include Vodka
PRODUCT PROFILE
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Devicolam Distilleries Ltd produces variety of products which are given below:
BRANDY
RUM
VODKA
1) BRANDY:
COUNT CHRISTO VINTAGE Brandy

Presentation: In bottles of 1000 ml, 750 ml, 500 ml, 375 ml, 180 ml.
SCARELET VSOP Brandy

Presentation: In bottles of 1000 ml, 750 ml, 500 ml, 375 ml, 180 ml
2) RUM:
COMBINATION MATURED Rum

CONTONMENT Rum
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3) VODCA:
FREE SOCCER
Presentation : in bottles of 1000 ml, 750 ml, 500 ml, 375 ml, 180 ml
M.G.M
Presentation : in bottles of 1000 ml, 750 ml, 500 ml, 375 ml, 180 ml
CHAPTER- 3
FUNCTIONAL DEPARTMENTS
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3.1 ORGANIZATIONAL CHART

Organizational chart is a diagrammatical presentation of relationships in an
enterprise. The functions and their relationships, the channels of authority and
relative authority of different managers etc. are depicted in an organizational
chart.
A chart is pictorial and indicating functions and their relationship, clear liner of
authority and responsibility, channels of communication and span of control and
supervision. Organizational charts can be divided into (i) master charts and (ii)
supplementary charts. The master chart shows the whole formal organizational
structure while supplementary chart shows details of relationships, authority and
duties within the prescribed area of a department.
Importance of Organizational Chart
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1. Organizational charts are a managerial tool. It helps in specifying authority and
responsibility of every position.
2. As organization chart specifically defines authority and responsibility of people in
the enterprise there will be no duplication and overlapping of duties etc.
3. The organization chart will help in pointing out the faults, deficiencies, dual
command etc. in the organization.
4. The organization chart act as an information centre to the n w entrants and they
can easily understand different levels of authority and responsibility.
5. The charts are also helpful in decision making process. They act as a guide to the
decision makers.
ORGANISATION CHART
Fig 3.1.1
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Board of Directors
Chairman
Managing Director
CEO
COO
Human Resource Manager

Production Manager
Finance Manager
Marketing Manager
Despatch in charges Head-Sales

Chief Blender
Sales Analyst
Civil &Maintenance.
Production In charge
Liaison Officer
Store in charge
PurchaseOfficer
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IT
HR Assistant
Admin Assistant
Security In Charge
Organization Structure
Organization structure refers to the differentiation of activities and authority roles
and relationship.
Each department has its own function. An absence of any department may
seriously affect the whole organization. These departments are functioning
interdependently, so there exists a cordial relationship among the employees of
the company. This leads to good communication within organization. For
production and accounts department there are senior managers & other
department are the direct control of general manager. The communication channel
between these departments is called 'tool box' meeting. These meetings are held
once in a month. Every employee is open to deliver any suggestions or
complaints that exist in the organization
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3.2 DEPARTMENTAL ANALYSIS

Every organization made up of more than one person will need some form of
organizational structure. The director appoints managers to run the business on a
day-to-day basis.
The responsibilities of each department are given below:
The chief operating officer has the major responsibility for running of the
company, including setting company targets and keeping an eye on all
departments.
The Store and dispatch department should control the movement of goods in and
out of the warehouse, supervising drivers and overseeing the transport of goods to
and from the firm.
The Planning and Production department has the responsibility for keeping a
continuous supply of work flowing to all production staff.
The Marketing department will be responsible for making contact with customers
and also responsible for market research and marketing planning.
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The Purchase and Finance department has to controls all the financial dealings of
the company and is responsible for producing management accounts and financial
reports and has the responsibility for purchasing raw material according to the
demand.
The
Human
resources department
will
be
responsible
for recruitment
and selection of new employees, employee motivation and a range of other people
focused activities.
The Quality control and inspection department should be checking the quality of
the product
3.3 HUMAN RESOURCE DEPARTMENT
An Human Resource department is an important department in a company. The

Human Resource Department deals with management of people within the
organization. There are a number of responsibilities that come with this title. First
of all, the Department is responsible for hiring members of staff; this will involve
attracting employees, keeping them in their positions and ensuring that they
perform to expectation. Besides, the Human Resource Department also clarifies
and sets day to day goals for the organization. It is responsible for organization of
people in the entire Company and plans for future ventures and objectives
involving people in the Company.
Fig 3.3.1
H.R MANAGER
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ASSISTANT MANAGER
(HR & ADMINISTRATION)
ADMIN & HR EXECUTIVE
Human beings are the most important asset of an organization. The acquisition
and maintenance of the power is vital for the survival of an organization. The
main function of the human resource department is look after the human resource
of the organization. This department is headed by the Personnel Manager. The
administration department is also under control of this department.
The human aspect of resources within an organization contributes approximately

eighty percent of the organizations value. This implies that if people are not
managed properly, the organization faces a serious chance of falling apart. The
Human Resource Departments main objective is to bring out the best in their
employees and thus contribute to the success of the Company.
The department handles all the personnel aspects of a company as well as

training, paying, and benefits for your employees. The purpose of having a human
resources department is to establish, develop, maintain, and communicate office
policies throughout the entire company and to represent, help, advise, and consult
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with the employees, while simultaneously keeping the overall best interests of the
company in mind.
A human resource department develops hiring plans and recruiting policies, as

well as handles compensation and salary administration. It also works for
affirmative action and handles employee relations, separations, contracts,
performance reviews, and benefits.
Human resource departments also develop official documentation, workplace

ethics/code of conduct, employee handbooks, employee training programs,
award/reward programs and community connections as well.
Human resource department is devoted to providing effective policies,

procedures,
and
people-friendly guidelines
and
support within
company.
Additionally, the human resource function serves to make sure that the company
mission, vision, values or guiding principles, the company metrics, and the factors
that keep the company guided toward success are optimized.
Employee Welfare
The employees welfare is taken care of and they are provided relief in cases of
distress .The financial assistance are provided to meet serious illness of
employees or of a member of the family, injuries of the employees, etc. ' The
recreation clubs are promoted for the employees in the units. Advances for
building of houses may be sanctioned to an employee, if he has the capability to
repay it.
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Employee Recruitment and Selection Process
Fig 3.3.2
These are the steps to recruiting and selecting qualified employees.
Review the Requirement
Business Process outsourcing
Resume Selection
Squeezed into 5-10 best qualification
Interview
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Selection
First, a department head must inform the Human Resource manager of an

opening in their department. Then the Human Resource manager must obtain the
job description to formulate a Job Description Sheet for publication either
internally, publicly, or both. Then Human Resource must field the (many)
responses to that job announcement to feed out the qualified from the unqualified
applicants. Once that is completed, the interview process must be coordinated.
They prepare the job description, field the calls, compile a list of potential
candidates, submit that list to the department's hiring manager for approval and
selection, contact the chosen candidates to set up preliminary interviews, and
interview the candidates.
Employee Training and Development

It is not necessarily a guarantee that a candidate who did well in the recruitment
exercise is the best in performing an organizations functions. New employees
need orientation into the Companys functions and can also improve some
inefficiency that these new employees may have in relation to their skills. This is
the purpose of placing them on internships.
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Training is also essential for members of staff who have been working for the
organization for a long time. This is especially so in the wake of technological
advancements, legal changes and changes in service delivery.
As a company and the requirements of a position evolve, a company needs to take

certain measures to ensure a highly skilled workforce is in place. The Human
Resources Department oversees the skills development of company's workforce,
acting as an in-house training center to coordinate training programs either onsite, off-site. This might include on-going company training and outside training
seminars.
There are different types of training given to the employees.
Induction training
Sales and marketing
Service training
Communication Training
Equipment Handling Training
Page 34
Operation Training
Employee Compensation Benefits
One of the major functions of the Human Resource department is to motivate
employees. This can be done through rewards especially for those who have done
well. The Human Resource department needs to evaluate performance of
employees and those who have exceeded expectations should be compensated for
their actions. This covers salaries, bonuses annual occasion, vacation pay; sick
leave pay, Workers' Compensation, and insurance policies such as medical. The
Human Resources Department is responsible for developing and administering a
benefits compensation that will stay on with the company. When an employee is
hired, the company's Benefits Coordinator is required to meet with employees
one-on-one or in small group settings to explain their benefits package. This often
requires an employee to make an informed decision and to provide their signature
for processing purposes.
Some compensation packages are;
End of year bonuses
Salary increments
Provision of flexible working hours
Straight forward promotion schemes and career developments.
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Employee Relations
With the increased rise in unethical practices and misbehaviors taking place such
as age, race, and religion discrimination, there needs to be mandatory compliance
with governing rules and regulations to ensure fair treatment of employees. In
short, employees need to know they have a place to turn when a supervisor abuses
his or her authority in anyway.
Grievance
Grievance procedure is a formal communication between an employee and the
management designed for the settlement of a grievance. The grievance procedures
are:
Open door policy: Under this policy, the aggrieved employee is free to meet the
top executives of the organization and get his grievances redressed.
Step ladder policy: Under this policy, the aggrieved employee has to follow a
step by step procedure for getting his grievance redressed. In this procedure,
whenever an employee is confronted with a grievance, he presents his problem to
his immediate supervisor. If the employee is not satisfied with superiors decision,
then he discusses his grievance with the departmental head. The departmental
head discusses the problem with joint grievance committees to find a solution.
However, if the committee also fails to redress the grievance, then it may be
referred to chief executive. If the chief executive also fails to redress the
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grievance, then such a grievance is referred to voluntary arbitration where the
award of arbitrator is binding on both the parties
Policy Formulation
Regardless of the organization's size, company policies and procedures must be

established to ensure order in the workplace. These policies and procedures are
put in place to provide each employee with an understanding of what is expected
of them. Similarly, these policies and procedural guidelines will assist hiring
managers in evaluating their employee's performance. Human resources
department must have a good HRIS in place to automate many functions such as
planning and tracking costs, monitoring and evaluating productivity levels, and
the storing and processing of employee records such as payroll, benefits, and
personnel files.
Making Better Use of Time
The Human Resource is conferred with the responsibility of ensuring that all
members of staff perform to their best ability. It could improve this area by
facilitating better use of time in all departments within the organisation. Time is
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one of the most crucial yet intangible assets of the Company. The proper use of
this resource could maximise production and achievement of organisational goals.
The Department can do this by planning activities to be carried out in the

organization. It can make schedules for the various activities that have to be done
in the organization and thus facilitate better flow of information. In addition to
this, the Company can also ensure that all members of staff are held accountable
for not performing a certain task. This is especially in regard to maintenance of
the schedules. In so doing, human the Human Resource Department will be
ensuring that employees do not simply report to work and that the time spent at
work is directly proportional to output.
IMPROVING ORGANISATIONAL CULTURE
The Human Resource Department can try to improve organizational culture

through a three step procedure.
The first step of the process is observation. In this step in Human Resource finds
out what makes ups or what the companys culture is like. Human Resource
should also be very intense on the organizational needs. Here, Human Resource
should realize that personal fulfillment works better and therefore should try to
ensure that the change is relevant to every staff member. In this stage, Human
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Resource should try to explain to all staff members or stakeholder the advantage
of transforming the culture in the organization. This should be made clear so that
all can see the advantages at the individual level and not simply at the
organizational level.
Then Human Resource should try to eliminate all inhibitions in staff members
minds. It is possible that some may claim that they tried one or two strategies
before and it did not succeed. This are what are called cries of despair and
Human Resource should try its best to explain to staff members the need of
changing the culture of the organization.
The next step is the analysis of various aspects. Here, there is collection of data
needed in making certain that culture changes. This stage involves checking out
the success features or the factors that can facilitate its success. There should be
calibration of data collected. Staff members should be made to understand that
there are no perfect situations for implementation of changes. The analysis should
involve assessing whether the information is sensible or not. Whether data
gathered will be helpful or not and if it is too little or too much. Staff members
should be requested for data that will help change the culture.
Of course when trying to bring in change Human Resource Department should

have perceived benefits, a deadline for execution and also the realized gains in
Page 39

relation to the change in culture. In this step, there should be reality checks which
should be done often. There should also be continuous integration. Through this
scheme Human Resource Department should be able to change the culture in the
organization and add value to it.
PERFORMANCE APPRAISAL
Performance appraisal is necessary to measure the performance of the

employees and the organization to check the progress towards the desired goals
and aims. Performance appraisal helps to rate the performance of the employees
and evaluate their contribution towards the organizational goals. If the process of
performance appraisals is formal and properly structured, it helps the employees
to clearly understand their roles and responsibilities and give direction to the
individuals performance. It helps to align the individual performances with the
organizational goals and also review their performance. Annual Performance
appraisal is usually done by the top management. Quarterly performance is done
by line managers. Self-Evaluation is done on daily basis by individual and,
monthly by immediate supervisor.
Self-appraisal is an important part of the Performance appraisal process where the

employee himself gives the feedback or his views and points regarding his
performance. This
is done with the help of a self-appraisal for where the
employee rates himself on various parameters, tells about his training needs, if
any, talks about his accomplishments, strengths, weaknesses, problems faced etc.
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Handling people are always difficult and difficult people are always hard to
handle, however with the help of a human resource department, employees can
work together as a cohesive unit to not only solidifies the company but to rake in
the profits as well. Human resource personnel understand the psyche of a person
so that they can motivate and stimulate employees to work not only more
efficiently but more effectively as well.
Thus ultimately the purpose of having a human resource department comes down
to wanting a cordial and friendly atmosphere where employees can work side by
side with their peers to create an effective business mechanism. And also the main
function is to manage people.
Holidays
There are 13 public holidays in a year and Sundays except the overtime.
Uniform
Company provides protective clothing to all production employees, but there is
no uniform for the other staff other than security staff.
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3.4 PRODUCTION DEPARTMENT
Production Department is divided into two sections that are liquor production
section and Packing and dispatching section. The liquor production section
working in three shifts and packing and dispatching section is one shift. The
capacity of tanker is 20000 litters and 20000 capacity cases per day and 9 bottling
lines and 6 lakhs litters blending capacity and 20 blending storage tanks, total 12
Page 42

lack litters storage capacity in the company tanks. Liquor production section
includes following steps.
Fig 3.4.1
PRODUCTION MANAGER
ASSISTANT MANAGER
PURCHASE MANAGER
SUPERVISOR
WORKERS
Receiving the Work Order

On receiving the work order from the production planning department the
production department in charge will mention the necessary raw materials
required to stores department. As the production can start only after the receiving
the raw materials from the store it should be provided by store as soon as
production planning department inform them.
Receiving the Raw Materials
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On getting the order, the raw materials will be received from the store
department. Because of the proper functioning of this department production is
working properly and on time.
Blending Process
Blending machine is used to blending the ingredients (raw materials) of liquor.
Blending machines use three tanks for blending purpose. These tanks are in huge
size which helps to mix bulk quantities of liquor. The process of blending is an
important thing in making of quality product.
Filling Process
After the blending process the liquor come into filling machine. With the help of
this machine liquor is filled into empty bottles. This process helps filling process
with great speed and efficiency.
Screening
On this stage liquor bottles are checked by screening machine, to make sure that
bottle doesnt contain any dust or another items. It is done as a matter of safety
measure and quality assurance.
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Cap Sealing Process

Cap sealing machines are used for putting caps on bottles. It is the process
through which bottles are caped and sealed.
Labelling Process
On this stage different brand labels are pasted on different brands of bottles. Label
printing machines are
used for printing the brand labels.
Packing and Dispatching Section

This section does the job related to packing and dispatching the product. The
process will start with the receipt of the work order from the planning department.
This section is headed by a strict supervisor. This section works only in first shift
and if required the work will be given overtime. Following process are included
on this section.
1. Packing Process
After labelling various brand liquor bottles are packed with various card board
boxes, and make a seal on each boxes; and kept into the warehouse.
2. Dispatching process
Dispatching of product is made on the basis of permits in hand.
Page 45
MANUFACTURING PROCESS FLOW CHART OF DD LTD
Fig 3.4.2
FB
IL
LE
LN
ID
I
N
N
G
G
Page 46
. Raw materials
The main raw materials used in Devicolam Distilleries Ltd are D.M. Water, Extra
Neutral Alcohol, and chemicals. Following are the raw materials used in
Devicolam Distilleries Ltd.
a. D.M. Water.
b. Extra Neutral Alcohol .
c. Chemicals.
d. Empty glass bottles.
e. Lubricants/oils.
f. Packing materials.
D.M. Water.
D.M. Water is the most important raw material and 50% of the total raw material
constitutes D.M. Water. D.M. Water is available locally so the company can
reduce the cost for this purpose. Average monthly requirement of D.M. Water is
65000 proof liters
.
Extra Neutral Alcohol.
Page 47

Extra Neutral Alcohol is another important raw material and it is an expensive
raw material. 35% of the product is Extra Neutral Alcohol. Firm purchased Extra
Neutral Alcohol from outside states like Karnataka, Maharashtra, Tamil Nadu and
Andhra Pradesh.
Chemicals
Essence, urea, yeast, failure red oil, Denaturants and Molasses are different
chemicals used for production, 15% of the product include chemicals. These are
purchased from the manufacture or their dealers.
Bottles: Generally 1000, 750,500,375,180 ml bottles and 350 ml bottles are used
for filling the liquor. These bottles are purchased from Karnataka and Tamil
Nadu.
Packing material
Packing materials include polyphone covers and card board boxes. These are
available in local market. Production is the process by which raw materials
and other inputs are converted into finished products. It is not one of
the important elements of marketing department as goods nor can
services be marketed unless they are produced. Therefore it plays an
essential role in an organization. This system differs from company to
company. There are inputs and outputs, operations and activities
imparting values to the inputs. A continuous production system is one
in which the equipments and workstations are arranged in the
sequence, in which the input raw material is converted into desired
components or assembly.
Page 48
Objectives of Production Department
To ensure that all the products will have consistent quality.

To achieve maximum customer satisfaction.
To faster team work for optimum productivity of men and machinery.
To meet the environment regulations with emphasis on safety of all the
employees and maintain the best keeping standards.

To meet the environment regulations with emphasis on safety of all employees
and maintain the best keeping standards.
Production department of Devicolam Distilleries Ltd mainly focuses on carefully

managing the processes to produce and distribute products and
services. Production management includes substantial measurement and analysis
of internal processes. There are two crucial departments that ensure the successful
functioning of the production department namely:
Purchase Department
Store Department
Purchasing
Purchasing activity of the firm is performing by separate purchasing departments.

For the raw materials the production department sends an indent to the purchasing
department about their recruitments. The purchase manager verifies the indent
and makes the order for the material. And the copy of the purchase order sends to
the purchase department.
Page 49
The raw materials are collected from the agents. The purchase departments make
the orders to the agents, i.e., how much want, what are the materials they want
Etc. They make the delivery at the specified time. Purchase process completes
only after the successful completion of the quality check by the Quality
Department. If the materials have the specified quality, it is allowed to entering in
to the inventory. This is the case of raw material, but for the other items each
department can make their intent to purchase department and they purchase and
gives to the departments.
Here purchasing activities is done by the manager . Manager oversees the
acquisition of materials needed for the operation, general supplies for offices and
facilities, equipment, or construction contracts.
Manager's responsibilities are:
seeking reliable vendors or suppliers to provide quality goods at reasonable prices
negotiating prices and contracts
reviewing technical specifications for raw materials, components, equipment or

buildings
Determining quantity and timing of deliveries.
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Operation
Here customers are the main focus. According to the customers requirement,
company will purchase material and develop the final product which the customer
demanded and passed on by marketing executives to the production department.
Once the product is made as per the design validated by marketing, and QC&
material will be delivered to the customer in a nut shell development involve
marketing input, design, validation, prototyping, production, inspection, testing,
& delivery.
Store
Store department is very important. This will help to reduce the time lags in the
supply chain, from supplier to user at every stage. Excel program is using as
database to enter the information.
Functions and Duties of Store department

The complete control on the materials is vested in the Stores Department. Store
department covers the following functions.
I)
II)
III)
IV)
V)
VI)
VII)
VIII)
Supplies material to Production departments.

Inventory control
Storekeeping
Materials handling
Codification
Packing
Transportation
Deliver to customers
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IX)
Printing of various Books & Forms, Periodicals, journals, Registers etc.

Quality Checking of Devicolam Distilleries Ltd
In each and every step the quality checking is carried out rather than that of the
certificate from the controller.
Production Planning and Control
Production planning mainly depends on the row material availability. The demand
for the seafoods is different in different period. Depending up on the term, the
target or the production is adjusting. They are using the past record for the
planning of the production and they analyse the demand of each product line. For
the high demanded season they purchase the row materials in bulk and 'start the
production work. They used hired labourers or they start the three shift
operations. In the off-season they cut the three shift operations or avoid the hired
labours.
The company adjusts the production according to the demand of the customers..
Competitions are another factor of the control of production. Depending up on the
price of the raw materials the production can be controlled.
The maintenance department checks each machine yearly and they repair it if
necessary. A technician is working under the maintenance department for doing
the maintenance work, is called the Maintenance In - Charge. Corrections of
machineries are given to outside contractors. Production department of the
company is responsible for the entire production process, stores, research and
development and quality control.
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Production Facilities
The plant is equipped with modern machines and operations are organized under
the watchful eyes of talented Management Team. Production and manufacturing
facilities are fully geared for the mass production in strict adherence to ancient
processing. Incorporation of modern technology for mass production and
upholding traditional value make the facilities well-integrated synthesis of
tradition and modernity. The main equipments used in the production process are:
Boilers
Open Pan
Hydrolic Press
Cooker
Incubator
Drier
Hotair Oven
Heater
3.5 MARKETING AND SALES DEPARTMENT
Marketing is a social and a managerial process by which individuals and groups

obtain what they need and want through creating and exchanging of products and
value with others. Marketing is evitable for the company, economy. Marketing
acts a linking force between an organization, the outside world, its markets and
customers. It has built a bridge between the farms and factories, which has
benefited agriculture, industry and also the society as a whole. The aim of
Marketing is to know and understand the customer so well that the product or
service fits him and sells itself. It is restless and dynamic field. This department
Page 53

has to play the most important role in the organization compared to all other
functions (purchase, production, finance etc) of any organization.
Fig 3.5.1
Marketing Manager
Marketing Officers
Marketing Supervisors
Executives
Marketing Strategy
An efficient marketing system is working to reach the products to every needy

person through direct distributor and agency.
The major marketing strategies adopted are brand advertisements, agency

developments and meeting the core customers through agency representatives.
Devicolam distilleries are now producing different type of products. Monthly 0-1
new products are getting added to this. Devicolam distilleries have a variety of
quality products.
Major competitors of Devicolam distilleries are:
Page 54
United Spirits Ltd

MGM Group
Radico Kithan Ltd
Amrith Distilleries Ltd
Thilaknagar Ltd
Over Cees Ltd Etc.
Functions of Marketing Department
Marketing of products.
Monitoring of sales.
Invoice and distribution sheet preparation through computers.
Consumers complaint redressed through computerized method.
Sales promotion and market surveying.
3.6 QUALITY ASSURANCE DEPARTMENT
In Travancore Sugars and Chemicals Ltd strict quality control measures are
implemented. It starts from taking raw materials for the production onwards.
Product quality and customer satisfaction are the priorities of the company
always. Quality begins right from the raw materials. It is the degree to which a
set of internal characteristics fulfills the need on exemptions. The company
ensures strict quality control measures in their factory due to which their liquor
productions are well accepted in all over Kerala.
Page 55

Fig 3.6.1
Quality Control Manager
Quality Controller
QC Technologist
Quality policy
DD Ltd is committed to manufacture and supply high quality products in Kerala
markets by focusing on;
1) Customer satisfactory and regulatory requirement.
2) Upgrading the skills of workers and employees by providing training.
3) Continuous up gradation of manufacturing facilities.
Structure
Quality control department is under the control of Quality Control Manager.
Under Quality Control superintendent there are two inspectors and lab assistants.
Lab in the factory is BIS approved. One quality inspector will be present in a
shift. He will check the quality of the products at different stages of production
and advise the workers whenever there is some quality related matter occurs at
Page 56

the production unit after the passing of the stringent examination only the
products will be passed after pulling quality control sealing.
A well equipped Quality Control department is functioning to ensure the quality
of product. Quality checking is being done at various phase of processing right
from the raw material testing to the finished products.
Devicolam Distilleries Ltd maintains high degree of quality not only in the
procurement but also in the processing phase. Product procurement is our forte
and we have the expertise to identify processing new, high quality products and
bring them to the market at the right time, at affordable price.
Devicolam Distilleries Ltd enforces quality assurance measures to meet

international standards in the preparation of seafood products. A well equipped
lab with qualified technicians oversees the implementation of HACCP, GMP
systems and ensures the quality standards. Microbiological analysis of the raw
material samples, products and all intermediate stages including equipments. We
also follow new innovate method in the operating procedures.
Quality control is a process by which entities review the quality of all factors
involved in production. They will assure the quality of the product throughout the
development cycle. It is the responsibility of the quality department to insure that
each and every product or services either meets or exceeds the quality objectives
and customer satisfaction.
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The plant is build in accordance with the pollution control boards effluent
treatment standards. As a commitment towards society, Devicolam Distilleries
Ltd has eco friendly waste management system.
Quality Management
Devicolam Distilleries Ltd giving priority concerns to employees health .They

are subjected to health checkups every six months and are vaccinated against
Tetanus and Typhoid annually.
Strict protocols are followed in the manufacturing process and quality checking
will be enforced at every stage. Finished products are tested for consistency and
quality. Packing of finished products is done in hygienic conditions to prevent
contamination.
Interdisciplinary
research
involving
the
specialties
of
biotechnology and nanotechnology will be initiated to bring transparency in the

manufacturing processes and the validate them scientifically.
Quality Control Measure
Quality control department is working for the checking and assuring the quality
of each process and each product, they check the quality of raw materials
purchasing and each process of production and finally the product also. A quality
controller hands Quality Control Department. The quality controller should be a
doctor. The firm gives more importance to quality because they are preparing the
food for the people. The companys mission is to produce quality products.
Page 58
Quality objectives
1.
2.
3.
4.
Focusing on processes and customer.

Good quality products at moderate price.
Using effective IT.
Encouraging creativity, Innovation and Team work.
Page 59
3.7 ACCOUNTS AND FINANCE DEPARTMENT
Finance is the lifeblood of the business. Managing the finance is a tedious task in
any organization. The ambitions and plans of a businessman would remain a
merge dreams unless adequate money is available them into reality. Financial
management is concerned with the planning and controlling of the firms financial
resources. The financial management includes deciding upon the investment,
sources of fund, dividend, financing fund allocation etc.
Fig 3.7.1
General Manager Finance
Finance/Account Executive
Accounts Assistant
Clerk\Cashier
Financial Management in DEVICOLAM DISTILLERIES Ltd
Page 60

Senior Finance Manager manages the finance department and he reports to the
M.D directly, about the functions of the department.
Basic Functions of Finance Department

1. Planning and allocating works to accounts staff.
2. Salary and wages administration.
3. Incentives and overtime payment.
4. Retirement, and other personnel matters.
5. Verifying cash books.
6. Verifying debtors statement.
7. Verifying stock statement.
8. Attending legal and departmental proceedings.
9. Verifying bank reconciliation statement.
10. Scrutinizing of purchase bill, expense bill etc.
11. Submitting returns to PF, and sales tax etc.
12. Legal security.
13. Monthly closing accounts.
14. Debit and credit note preparation.
Accounting Procedure
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DEVICOLAM DISTILLERIES Ltd follows the double entry system of
accounting. Various books of accounts are maintained by the accounts department
and also by other departments. In recording the day to day transactions, cash
receipt, rough cash books are maintained manually. Finally the fair cash books are
prepared on the basis of these in a computerized method. During the year,
personal ledger, administration ledger and agents ledger are prepared. The sales
report is also prepared.
The journal entries are recorded in the journal register. Working capital provided
by the sale of goods. The accounts of the company are fully utilized.
Sources of Finance
1.
Capital.
2.
Bank loans.
3.
Shareholders fixed deposit.
Finance is the science of funds management. The field of finance deals with the
concepts of time, money and risk and how they are interrelated. It also deals with
how money is spent and budgeted. Finance is one of the most important aspects
of business management. Without proper financial planning a new enterprise is
unlikely to be successful. Managing money (a liquid asset) is essential to ensure a
secure future, both for the individual and an organization.
The finance department of a business takes responsibility for organizing the

financial and accounting affairs including the preparation and presentation of
appropriate accounts, and the provision of financial information for managers.
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Finance department is responsible for the financial administration and

management of the company in compliance with the financial rules and the
financial guidelines acting in this company. Finance department concerns finance
flow management of the company and is aimed to serving staff, managers, the
Board of Directors and securing the financial health of the company.
Finance department goal and services

The main goal of The Department is to provide the internal and external users of
financial statements with relevant, accurate and timely information and to
guarantee that the required financial revision is closely adhered to in order to
protect the assets of the company. The Department takes care of finance flow to
ensure that the company operates within its financial regulations and satisfies
various external financial requirements. It also ensures that the corporate financial
records comply with internal and external audit.
The Department there can be picked out the following main services it renders:
Payment of invoices and expenses
Income collection and salary management
Production and assignment of budgets, capital plans, and cash flow forecasts
Monitoring and managing financial plans
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Auditing and reporting financial condition
Giving advice on pricing and costing
The Department plays an important role in the company and the relations between
organizational units. It is closely cooperate with such company's divisions as
Sales Department, Administration, Warehouse, Deliveries, and Marketing
Department in the fields of payments, audit, revision, account and cash flow. The
effective collaboration is the guarantee that all payments, accounts and deposits
will be processed, covered and closed out. This is important as proper
organization of the finance system inside the company brings the positive and
fundamental effect to the company's competitiveness, demand and reputation.
Reporting finance-related tasks
At the end of each day Finance Manager needs to get reports on what has been
done during the day. He gets reports from the financial staff members and
analyzes performance of each member. For example, to find out whether all
outstanding invoices have been paid, Finance Manager needs to get status report
on the tasks 'Pay off invoice'. Accountants who are assigned to these tasks can
export the tasks view into MS Excel,ERP file and send the file to Finance
Manager as a report. Such a report in Excel format shows detailed information
about task statuses.
The areas covered by the financial department include:

Book keeping procedure
Page 64

Keeping records of the purchases and sales made by a business as well
as capital spending. These records are typically kept on computer files. Tally is
using as a software for Computerised Accounting.
Creating a balance sheet and profit & loss account
Financial statements need to be produced at given time intervals, i.e., at the end of
each financial year. Trial balances are extracted from the ledger entries to create a
Balance Sheet showing the assets and liabilities of a business at the year end. In
addition, records of purchases and sales are totalled up to create a Profit and Loss
(P&L) account.
Providing management information
Managers require ongoing financial information to enable them to make better

decisions. They should give information about how much it costs to produce a
particular product or service, in order to assess how much to produce and whether
it might be more worthwhile to switch to making an alternative product.
Management of tax
The finance department is also responsible for calculating and organizing the
collection of income tax, sale tax, service tax, tax reduction at source
TDS and fire and safety insurance for the inland and export revenue.
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Income tax : 250000 is normal, 2.5 lak-to-5 lak-10%, 5 lak-to-10lak-20%, 10
above 30%,.
Sales tax : VAT-5% ,Central sales tax- 2%
The company provide home loans and other monitory programs to reduce the
taxes.
Costing
Costing systems are components of a broader accounting system used by the
company. The main function of the costing system is to keep a focused eye on
expenditures made by the company. While the data that is collected and generated
by the costing system is also integrated into the overall accounting system, the
costing approach allows for easy extraction of the data for reports to upper
management.
The factors that influence in costing of a product are:
Demand of the customer
Market feed back
Volume of the production
Quality
Sales realization section for product

Pricing
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Price Systems provides organizations with the visibility to confront project
investment decisions through sophisticated cost estimation products and services.
The factors that affect the price of a product are:
Bill of the raw material
Volume of the production
Inventory caring cost
Sales promotion(sales and marketing cost)
Salary of the employees
Transportation charges
Profit margin
Budgeting
Budget is a document which documents the plan of the business. This include the
objective of business, targets set, and results in financial terms, i.e., the target set
for sale, resulting cost, growth, required investment to achieve the planned sales,
and financing source for the investment. Also budget may be long term or short
term. Long term budgets have a time horizon of 510 years giving a vision to the
Page 67

company; short term is an annual budget which is drawn to control and operate in
that particular year.
Capital budget
This concern proposed fixed asset requirements and how these expenditures will
be financed. Capital budgets are often adjusted annually and should be part of a
longer-term Capital Improvements Plan.
Cash budget
Working capital requirements of a business should be monitored at all times to
ensure that there are sufficient funds available to meet short-term expenses.
The cash budget is basically a detailed plan that shows all expected sources and
uses of cash.
3.8MAINTENANCE DEPARTMENT
Production of the company depends largely on the maintenance department. In
Devicolam Distilleries Ltd, preventive maintenance aims to locate the source of
trouble and to remove them before break down occurs. So that the machines are
kept in the proper condition so as to maintain the quality of the product and to
have few rejects.
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This section is looking after the projects and maintenance of technological aspects
of affairs of the company. This is a section in which mechanical experts are
working on different projects. This section takes over the responsibility of various
projects. They are making efforts to expand the area of performance of the
company.
Maintenance department minimizing the production affected time of machinery

break down Maximum 4 hours per month with in 3 years.
Fig 3.8.1
Maintenance Manager
Assistant Manager
Labourers
Page 69
3.9 INFORMATION TECHNOLOGY DEPARTMENT
The IT department of Devicolam Distilleries Ltd Cochin Unit consists of a system

executive. The main function of a system executives are given below:
Functions:
Data backup.
Updating data and co-ordination
Check the working condition
Virus scanning and updating
Implementation of new hardware and software.
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3.10 OTHER DEPARTMENTS
Material Handling Department

This department carries out the process of loading and unloading of raw material.
The department also conveys the raw material to various actions. Loading and
unloading of raw material helps the movement of raw materials to and from the
organization. In the first case raw material reaches organization for production
process and after the production it is unloaded from the organization to where it is
needed to go.
Civil Engineering Department

The function of this department includes civil engineering works, maintenance
function and control of various machines etc. small works like painting of certain
portions, re plastering etc are done by this department. This department mainly
includes maintenance works. They are very much concerned about completing the
assignment task with perfection.
Laboratory Department
The company has its own lab which is continuously striving to maintain the
quality of the products. These are three levels of testing conducted in the
laboratory. They are:
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Raw material testing
Process testing
Intermediate testing
The sample should be given to the government laboratory for getting approval for
further production.
Workshop Department
The company has a workshop under the control of mechanical maintenance
department. All machinery works and repairs are undertaken in the workshop.
There are 320 employees in the workshop.
Electrical Department
This department deals with all the works concerned with electrical equipments,
power linker and allied activities.
Administrative Department
This department is carrying out the general administration of the company.
All other clerical works are done here.
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CHAPTER 4
SWOT ANALYSIS
Page 73
4. SWOT ANALYSIS
4.1 STRENGTHS
Brand Name
Established brand name. They have created a good image in the minds of the
customers.
Superior quality products: DDL provides superior quality products to their customers and they ensure the
quality through various quality control tests. They use most hygienic and
sophisticated method in processing. The product s made from well sought out raw
materials as well as the production process is running under strict quality control
techniques
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Good atmosphere: There is peaceful and cordial working condition here .Smoking and alcohol
consumption strictly prohibited inside the organization. They provide regular
intervals to the employees for refreshment.
Experienced Staff: The Company is support by experienced well qualified and skilled labours .There
employees are asset to the organization.
Effective Administration:Effective administration is the back bone of the company .All the departments are
well harmonized and try to increases their efficiency for the organization goal.
Here DDL has good administration and proper plans and procedure are developed
at right time for the betterment of the company.
Market Stability
Better stability in the market
Availability of Skilled Staff and Labour

Since, the staff and labour of the organization are skilled and talented in their own
area of departments it increase better functioning of the organization.
Patent Products
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DDL has its own patent products.
4.2 WEAKNESS
Cost of Transport is high: The cost of transportation is high in the case of export business. Because the
finished products needs to travel long distance for its final consumption.
Communication Gap:Open door policy is not been implemented here, proper communication problems
are frequent here. Strong gap exist between supervisors and subordinates
Lack of Training Programmes to Labours

Because of busy work schedules & shift there was not much time for conducting
training programmes
The Company has only single plant:The Company have only single plant so the company cant produce up to a
particular limit.
Raw material shortage: Raw material is limited and this raw material takes little time for its maturity.
4.3 OPPORTUNITIES
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Huge Investment is required: - Huge investment is required in the export

business, so the entry of new competitors is comparatively low.
Demand of Product
Good stability due to high demand. Thus more market segments can be tapped
using better marketing strategy.
Product Line and Market Share

The Product line should be increased so that the market share of the company
shall go up in future.
Production Technology
New and better production technology is available in the international market
which can be adopted by the company.
4.4 THREATS
Strike : Chances of unexpected Hartals in the state is another important problem faced
by this company . It will lead to the shortage of raw materials
Political Interference: The Company has lot of political interferences which cannot be avoided in a
states like Kerala having multiple political parties.
Scarcity of raw material: The availability of raw material is limited. So the company have to concentrate
more in the raw material creation.
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Entry of duplicate product:The company have good brand image and products have good demand in
market .So chances of duplicate & spurious products
Cut throat competition: The Company is facing aggressive competition from the International &
Domestic MNC. .
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CHAPTER- 5
FINDINGS
,SUGGESTIONS&CONCLUSI
ON
Page 79
5.1 FINDINGS
DEVICOLAM DISTILLERIES Ltd is a reputed company with professional
management .Year by year it earns increasing turnover and demands. The labourManagement relationship in this company is so good.
Most of the employees are satisfied with the financial incentives offered.
The company is more concerned with the health and safety of employees.
There is good remuneration, job security, employee counselling and sound
leadership employed by the management to improve employee morale.

The company uses other methods of disciplinary actions instead of punishment,
suspension, dispersal and discharge.

The marketing strategies adopted by the company has to be updated to explore
new markets & meet the competitions of the globalised world.
Labour turnover is very low.
Good relationship between employees and management.

The company also provides the medical insurance in their organization.
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5.2 SUGGESTIONS
The company should adopt modern techniques of production to meet the
changing demands & increase efficiency.

The company should give appropriate recognition for the contribution and
accomplishments made by employees.

The management should encourage the employees participation in decision
making.
Should improve the attractiveness of the packing design.
The company should introduce new marketing strategies.
The company needs to concentrate more on Expansion of business
Product line should be increased in order increase the market share of the
company.
The company may give the appropriate recognition for the contribution and
accomplishment made by employees

The company needs to introduce the new strategies for Local and National
business.
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5.3 CONCLUSION
The DEVICOLAM DISTILLERIES Ltd, Kakkanad, Kochi. There are mainly

four departments in the company and they are production, marketing, finance,
human resource and administrative department. The DEVICOLAM
DISTILLERIES Ltd is trying to provide better products; to satisfy its consumers
needs.
The firm is committed to professional management and provides decent living to
its employees and it is really a leader in the part of the world. I believe that in the
era of globalization this firm will glorify our nation by concurring the global
market by satisfying the needs of the global consumers.
The internship done at DEVICOLAM DISTILLERIES Ltd gave me practical
exposure to the theory that I have learned. I have undergone training sincerely and
satisfactorily. The firm also was co-operative to complete the training.
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The most important factor which leads DEVICOLAM DISTILLERIES Ltd to the
highest position is the employee- management relationship. On company can
enter into the top position without the support of the employees. The marketing
strategy and technologies used in the production process is the unique feature of
DEVICOLAM DISTILLERIES Ltd.
BIBILOGRAPHY
BOOKS
Kothari C.R (1995) Research Methodology and Techniques.
Human Resource Management : K.Aswathappa.
Company brochures and prospectus.
WEBSITES
www.google.com
www.answers.com
www.ddl.com
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Jai Bharath School of Management Studies