MANAGEMENT IN ACTION REPORT

ON DEEPAK CASHEWS

JESWIN -4NM15MBA61
SHALINI US-4NY15MBA51
VENKATESHA DAMLE-4NY15MBA83
PRUTHVI Y P-4NY15MBA26
UNDER THE GUIDANCE OF
MR. KRISHNAPRASAD
ASSISTANT PROFESSOR
JKSHIM, NITTE KARKALA

CERTIFICATE

This is to certify that Management In Action report on Deepak Cashews is prepared by

Students of JKSHIM, in partial fulfilment of the requirement for the award of the MBA
degree as per Vishveshvarayya Technological University under my guidance and
supervision .This is also to certify that this project report has not submitted to any institution
or university for procurement of any degree or diploma.

Place: Nitte

Mr. Krishna Prasad

Date: 08.10.2016

Associate prof,
JKSHIM, Nitte
(Internal Guide)

DECLARATION

We hereby declare that this Management In Action report titled Deepak Cashews is
original and bonafeid work carried out by us under the valuable guidance and supervision of
Mr. Krishnaprasad ,Associate Professor, Justice K. S. Hegde Institute of Management, Nitte.
We also declare that the report is the result of our own effort and it has not been submitted to
any other University for the award for any degree or Diploma.

Place: Nitte

Pruthvi

Date: 08.10.2016

Jeswin
Shalini US.
Venkatesha Damle

ACKNOWLEGEMENT

The completion of MIA report would not have been possible without the much needed help
and guidance of Mr. Krishna Prasad, Associate professor, Justice K. S. Hegde Institute of
Management, Nitte who guided us throughout this project, His help and guidance made this
report possible and gave suggestion and ideas as to further improve this project. We would
like to thank him for all the support he has rendered for this project.
We also thank Dr.K.Sankaran , Our director for giving his valuable inputs.
We express my heartfelt thanks to all students and HR manager for giving their valuable
response and leisure time which helped us to complete this project.
This report would not be possible without the support and guidance of the professors of
JKSHIM, Nitte. We would also like to express our gratitude to the institution for giving us
this opportunity and all those who have directly or indirectly helped us with this report.

Pruthvi
Jeswin
Shalini US
Venkatesha Damle

Sl.no

Particulars

1.0

Introduction
1.1 About Cashew Industry
1.2 Company Profile

Problem identification

Comparison of competitors pay scale

Table 1 :
Table 2 :

Page no.

1.1
Executive summary
Cashew industry is a growing business sector in India. It has provided a significant
contribution to the exports of the country and has also provided a vital support to the rural
economy by providing employment opportunities to many people. As cashews have a huge
demand in the international market as well as domestic market, it is very relevant to ensure
the productions and exports which can play a major role in total exports of the country. The
report is based on Deepak Cashews located in Perdor, Udupi district region.
This firm is primarily engaged in the business of collecting raw material, processing and
exporting them. In order to get a compact view about the organization, a detail evolution is
essential both in production and marketing. Hence we ensured a complete support from the
management through our regular meetings and suggestions. It helped both to identify the
threats and opportunities of Deepak cashews, in order to explore in a most dynamic way in
future.
The labour turnover was marked as a major issue in initial research itself. The employees are
paid on daily basis system, were the employees will not sustain for longer period. But still
there are many skilled labours who also continue with the firm. With this report we are trying
to assist the management to overcome such labour issues for the better productivity and
profitability. The study was extended to a wide angle such as a cross-analysis from few
competitors nearby.

1. About Cashew industry

At present, Cashew Industries contribute large portion of income to the world economy. The
Cashew Industries are purchasing raw materials from different countries due to lack of
availability of raw materials in our country. Even it is a seasonal product; there is no scarcity
of raw materials for cashews in the world. It is because Cashews are grown during different
season in different countries. That is why, industries can access to the large number of
suppliers from all over the world. India exports cashew kernels to over 60 countries.
Indian Cashews is called as Indian Cuisines which is used for garnishing or give a finish
touch for every dessert, made in India.

1.2
Company Profile
Deepak cashew was established in 1996 to manufacture raw cashew into cashew kernels. It is
a sole proprietorship started by Mr.Harish Shenoy with the initial investment of 1 crore.
Deepak Cashews is one of the leading brands in location called as Perdoor in Udupi district.
At present, industry work is carried by Mr. Sandeep Shenoy who is a Bcom graduate from
Mangalore University. It is a manufacturing and processing firm which deals with huge
quantity of Cashew kernels on daily basis. It finds an opportunity to expand its industry not
only limiting to cashew business but also to cloth bags and cotton industries. The Deepak
industry supplies finished goods to nearby areas as well as outside the state.
Deepak Cashew Industries imports raw materials from different countries such as Africa,
Benin, Tanzania, Ivory Coast and Mozambique on the basis of seasons.
The annual turnover of the factory is 8 to 9 crore .
Firm got licence from various government departments

Licenses involved in starting the Deepak cashews

VAT (Value Added Tax) registration
I&E license
Panchayath consent certificate
Electricity board certificate
Pollution Boiler department certificate
Labour board certificate
Employee Provident Fund certificate

1. Problem Identification

Deepak cashew industry consists of 150 labours, 65 workers working inside the factory and
30 members working outside the factory outside work such as transportation, canteen
workers etc.40 workers working in their another factory branch which is located in Sitanadi,
Udupi district. The factory is paying 250 for women per day and for men 300 per day.
Factory owned 4 vehicles 2 for loading and rest 2 are passenger vehicle. The standard
working time of the factory is 8 hours per day. The working hours from 8 a.m to 5 a.m with
break of one hour in between.
Inspite of having 150 labours still Deepak Cashews are facing problem of labour turnover
that is labours are vacating the factory within one year of joining. This is the major problem
of Deepak Cashews.
The reasons for labour turnover are:
1. Payment of wages
The factory is paying wages in straight salary method because of this, labour are
unsatisfied with payment method.
2. The employees are not getting increment on the basis of their experience
The experienced employees pay scale will be the same as inexperienced labourers.
So the existing labours Demotivated, this will reduce the work efficiency of the
workers. This is the one of the reason for labour turnover.
3. Agriculture season:
During the agriculture season that is from the month of June to September employees are
not willing to work in the factory because they have work in their field so this is another
problem face by the factory.

3.1 Comparative Analysis of Deepak Cashews with other competitors

In context of Wage standard, impact on labour turnover

Here is the comparative study of other firms on the basis of wages has been listed which
defines the variations in wage standard
Gayatri Exports
V K Cashew Exports
Shree Krishna Exports
Deepak cashews
TABLE 1
Piece Rate System of Gayatri Exports
Process

Pay Scale

Minimum
Kg

TOTAL

Rs
14.

(Rs)

Kgs

Rs

TOTAL (Rs)

15

217.5

20

14.5

290

Cutting
Piece Rate
Basic
TOTAL

103.98

103.98

321.48

393.98

18.

Peeling
Piece Rate

Grading

Maximum

166.5

12

18.5

222

Basic

103.98

108.98

TOTAL

270.48

330.98

Fixed

173

103.98

Basic

103.98

173

TOTAL

276.98
289.6466

276.98

333.98

Average

Table 2
Piece rate system of VK Cashews

Process

Pay Scale

Cutting

Minimum

Basic

TOTAL (Rs)
232
103.98

TOTAL

335.98

Piece Rate

Peeling

Piece Rate

Grading

Basic
TOTAL
Fixed
Basic
TOTAL

Kgs
16

11

Rs
14.5

Maximum

18.3

201.3
103.98
305.28
174
103.98
277.98
306.4133

Average

Kgs
19

Rs
14.5

TOTAL (Rs)
275.5
103.98

379.48
19

14.5

275.5
103.98
379.48
174
103.98
277.98
345.6467

TABLE 3
Piece rate system of Sri Krishna Exports
Process

Pay

Minimum

Maximum

Scale
Kg

Cutting

Kgs

Rs

TOTAL (Rs)

Rs
16.

TOTAL (Rs)

14

16.5

231
104.4
335.4

19

313.5
104.4
417.9

Piece
Rate
Basic
TOTAL

Peeling

Piece

Gradin

Basic
TOTAL
Fixed
Basic
TOTAL

Rate

14.
11

14.5

159.5
104.5
264
176
104.4
280.4
293.2666667

Average

14

TABLE 4
Deepak Cashews
Process

Minimum

Maximum

203
104.5
307.5
176
104.4
280.4
335.2667

Cutting

300
(Fixed wage)
300
(Fixed Wage)

300
(Fixed Wage)
300
(Fixed wage)

Grading

300
(Fixed Wage)

300
(Fixed Wage)

Average

300

300

Peeling

Here the Comparison of wage system on the basis of fixed rate system as well as piece rate
system, when we compare the four different process in four different firms, the paying system
varies in each process in each firms.

Cutting process
In cutting process, piece rate system is followed in three firms, were as in Deepak
cashews that of fixed rate system. The minimum wages in three cashew firms are
Rs.325, Rs.322, Rs.336.the maximum wages can go up to Rs.378, Rs.394, Rs.418 in
respect to the table above .The productivity of the labour in an average will be 14kg to
20kg.Were in Deepak cashews the wages are fixed as of Rs.300 which ensures an
average productivity ranges from 12kg to 18kg.
Here it is very evident that the employees of the firms which follows piece rate
system earns more.

Peeling process
When we come to the comparison of peeling processes, the firms which follows piece
rate system ensures a minimum wages of Rs.296,Rs.270,Rs.264 were the maximum
can goes up to Rs.349,Rs.326,Rs.307 in respect to the table above. The productivity
varies from 11kg to 15kg. In the same context Deepak cashews pays a fixed wages of
Rs.300 were productivity in between 9kg to 13kg,
Here when we compare the minimum wages with Deepak cashews the employees
earns higher. While comparing maximum wages they are earning less. So, we can

conclude that, the wages and productivity are almost equal.

Grading process
Here the scenario is different in terms of payment. All firms are paying fixed wages,
were Deepak cashews pays Rs.300 which is higher while comparing the rest. Other
firms pays Rs.277, Rs.280, and Rs.278 in respect to the table above were the
productivity is fixed to 60kg/day.

Here the employees in Deepak cashews are benefited while comparing to other firms,
which makes a benchmark for Deepak cashews.
While we compare the total average of each firms processes the average wages are:
Minimum

Maximum

1, Gayatri exports-

Rs.300

Rs.335

2. VK cashews-

Rs.290

Rs.332

3. Sree Krishna exports-

Rs.293

Rs.335

4. Deepak cashews

Rs.300

Rs.300

This differentiates that the first three firms are more on to productivity as well as workers
earnings segment. This ensures maximum productivity, growth of the firm and working
efficiency. Deepak cashews follow an traditional payment method. They are focusing on
average productivity and average payment.

4 Solutions to the problems

Labour turnover is the main problem of Deepak cashew. We came with a few solution to this
problem are:
Straight salary with commission payment method:
As Deepak cashews are giving straight salary of Rs300 to every worker so it will demotivate the workers to work effectively and because of this the labours are vacating the
factory.
Solution to above problem is the factory should implement the straight salary with
commission means factory must give commission for the workers who produce extra
cashew kernels which will motivate the workers to work.
Providing extra facilities:
At present factory is providing transportation facilities to workers. Transportation facility is
important because this factory is located in remote area. We suggest the factory that to

provide facilities like accommodation facility which will help the firm to retain the workers
so it will strengthen the competition ability.
Tying up with the contract labours:
As this factory is facing labour problems so we are suggesting the industry to hire contract
workers from agency which is providing workers for some days. The factory can hire the
workers on the bulk basis.
Providing higher salary to experts:
Deepak cashews have to pay higher salary to expert workers, which will help to retain
experienced workers and would likely to enhance the productivity.
Creating website:
We suggest the Deepak cashews to create their website and provide all information related
to factory such as products, suppliers, competitors, job vacancies etc. The contract labours
come to know about the vacancies so that they may provide labourers to the factory. This
may help to recruit more workers who are willing to join this firm.

5 Conclusion
We the team of 4 members have visited Deepak cashew factory in Perdoor of Udupi district.
We have studied the working of factory and we made a perusal study and extracted the
problems and difficulties of managing the factory from the owner. We have given certain
suggestions to overcome the difficulties and problems involved in the management of the
factory. Since the factory is labour oriented, the management should give prior importance to
attract more labourers the management should provide better facilities like food at subsidised
rates, medical facilities, accommodation facilities, educational facilities to their children and
many more modern amenities. So we have come to the conclusion that since the cashew
factory is labour intensive, the success of the cashew factory business depends upon how far
the management is able to satisfy the labourers.