CHAPTER I

INTRODUCTION

1.1 INDUSTRY PROFILE

Outlook of Indian Edible Oil Industry

Edible oils constitute an important component of food expenditure in Indian

households. Edible oil industry is one of the most important industries of agriculture sector in
India. India is a leading player in the industry, with worlds largest importer from Indonesia
and Malaysia and third largest consumer. India is the fourth largest oil seed-producing
country in the world after USA, China and Brazil. In all, nine types of oilseeds are produced
in India. Of the nine, soya bean, ground nut, and mustard are the major oilseeds produced in
the country. The growth of edible oil consumption and increasing population coupled with
limited availability of oil seeds and shifting of acreage to other crops have resulted in
continuous demand supply gap for edible oil which is being met by imports. Further import
of edible oil is subject to change in custom duty rates between crude oil and refined oil which
can affect domestic producers and refiners. Apart from Indian custom duty rates, Indian
edible oil industry is also susceptible to the policies of Indonesia and Malaysia, the two
largest exporting countries of edible oil. The article delineates on various reasons for decline
in edible oil production along with prospects, issues and challenges faced by the industry.

Overview of Indian Edible Oil Industry

India plays an important role in the global edible oil market, accounting for 10-12%
share of consumption; 6-8% share of oilseed production; 4-6% share of edible oil production,
and 12-14% share of world edible oil imports for OY151. Furthermore, the industry is highly
dependent on availability of raw material, domestic production of oil seeds, annual rainfall,
global price fluctuations and consumer preferences. Availability of edible oil in India has
shown a compound annual growth rate (CAGR) of 7.32% during OY06-OY15 with y-o-y
growth of 8.02% in OY15 over OY14, whereas the growth in population has remained at
CAGR of 1.29% during 2006-2015. Majority of the demand supply gap of edible oil in India
is being filled through imports.

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The

growth in production of domestic edible oil has not been able to keep pace with the growth of
consumption. Thus, this gap is being met by the imports that account for almost 55-65% of
the total oil consumption during past five years. Continuous increase in the gap between
demand and supply of edible oil has forced India to do huge import from leading exporter
countries of edible oil. The demand supply gap is becoming wider mainly due to limited
availability of oil seeds, shifting of acreage to other crops and increase in demand of edible
oil.

More than 14 million tonnes of edible oil was imported with a total value of
Rs.64,396.49crore during OYFY15. In terms of volumes, crude edible oil contributes about
89% and refined oil contributes about 11% of the total import during OYFY15. Of the 89%
of imported crude edible oil, palm oil, soybean oil and sunflower oil contributes about 54%,

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21% and 11%, respectively. India is importing edible oil from Indonesia, Malaysia, Argentina
and Ukraine contributing about 36%, 23%, 17% and 13%, respectively, of total imports.

Demand of edible oil is mainly driven by increase in per capita consumption of edible
oil, rising income levels and improvement of living standards. However, the Indian edible oil
market continues to be underpenetrated as current per capita consumption level of India (at
14.4 Kg/year for 2014-15) is much lower than global averages (24 kg/year). Furthermore,
domestic consumption of edible oil is expected to increase with enhancement in income level
and population.

Constraints in Oil Seeds Production

1. Oilseed crops are largely grown under rain-fed condition (>70%) and are more prone to
biotic and a-biotic stresses. Only one fourth of oilseed producing area remains under the
irrigation.

2. Oilseeds are energy rich crops but are grown under energy starved conditions (with
minimum inputs with high risk).

3. Majority of oilseed growers (more than 85%) are small and marginal farmers having poor
resource base.

4. High seed rate (number of seeds (Kg) to be used per hector or acre for maximum yield)
and cost of seeds coupled with non-availability of quality seeds of varieties and hybrids.

5. Limited adoption of improved varieties and technologies.

6. Unorganized marketing infrastructure and procurement mechanism.

7. External price shock on account of dependence on import is a major challenge in this

sector.

8. The cultivation of oil seed farms such as palm has long gestation period of about 3-7 years
before the cultivators could actually begin to derive benefit from thereof.

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Trend of Refined and Crude Oil Import in Terms of Volumes and Duty

The current duty differential between CPO and RBD (refined, bleached, and diodized)
stands at 7.5%, which provides protection to domestic refiners against competition from
imported refined oils to certain extent.

The increase in export duty by Indonesia on CPO has adversely affected the refining
industries in India due to narrowing spread between crude and refined oil in global markets
OY15. The spread during Q3FY14 between CPO and RBD has narrowed to as low as about
$10 a tonne, thus adversely impacting the profitability margins of domestic refining
industries as most of the domestic trades have sought for import of RBD than purchasing
from domestic players. In order to counter the same during January 2014, Indian government
has raised the import duty on RBD to 10% from 7.5%, while that on CPO was kept
unchanged at 2.5% resulting in increase in differential duty between RBD and CPO at 7.5%

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from 5%. Furthermore, import duty for RBD was increased to 20% from 15% and for CPO it
was increased to 12.50% from 7.50% during September 2015. Thus, net duty differential was
being maintained at 7.5% to protect the domestic industry. Going forward, the industrys
profitability is vulnerable to any reduction in this duty differential.

Intervention of Government to Tackle Import of Edible Oil

Government of India is promoting National Mission on Oilseeds and Oil Palm

(NMOOP) during 2012-17 to achieve objectives such as increasing Seed Replacement Ratio
(SRR) in oil crops with focus on Varietal Replacement, increasing irrigation coverage under
oilseeds from 26% to 36%, diversification of area from low yielding cereals crops to oilseeds
crops, inter-cropping of oilseeds with cereals/ pulses/ sugarcane, use of fallow land after
paddy/potato cultivation, expansion of cultivation of Oil Palm and tree borne oilseeds in
watersheds and wastelands, increasing availability of quality planting material enhancing
procurement of oilseeds and collection, and processing of tree borne oilseeds. The cost of
interventions under the mission was in the ratio of 75:25 between center and states. However,
for components like seed production, Front Line Demonstration (FLD), mini-kits, adaptive
research being implemented through central agencies such as State Agricultural Universities
(SAU) and Indian Council of Agricultural Research (ICAR) institute are being funded
through 100% central support. There are three mini missions in this scheme viz. Mini-
mission-I, II and III. Mini Mission-I focuses on oilseeds, Mini Mission II on oil palm and
Mini Mission III on tree-borne oilseed (TBOs). The mission aims to enhance production of
oilseed from 28.93 million tonnes (average of 11th five year plan) to 35.51 million tonnes by
2016-17 and to bring additional area of 1.25 lakh hectare under oil palm cultivation with
increase in productivity of Fresh Fruit Bunches (FFB) from 4927 kg/ha to 15,000 kg/ha by
end of 12th five year plan.

Indian Edible oil Industry has witnessed financial stress due to droughts, rising
production costs and cheaper imports thus forcing several small firms to shut shop. India
imports nearly 67% of its edible oil requirements; the rest is being met from domestic
production.Area expansion under palm oil fell by over 50% over the last couple of years due
to low prices of crude palm oil and poor rainfall. Though the duty differential between crude
andrefined palm oil is 7.5%, edible oil sellers are finding it more convenient to import refined
palm oil directly from Malaysia and Indonesia and sell it in the domestic market thus placing
the edible oil processing units to operate at hair line margins or in worst case scenario

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wherein the units are small the operations have become unvailable. The performance of the
companies in edible oil sector for medium term period will depend upon the demand of CPO
in India post recent increase in import duties on refined edible oils, movement of domestic
edible oil prices, performance of Indian Rupee against US Dollar, anticipated sales volumes
and profitability margins from the specialty fats business with comprehensive product range
including bakery shortenings, chocolate & confectionary fats, ice cream fats and a range of
cooking oils.

Outlook

The long-term outlook of edible oil demand in India is favorable on expectation of

increasing population, increase in per capita consumption which in turn would be driven by
changing lifestyles, growing urbanization, increasing proportion of middle-class population
and steadily rising affluence levels. The near-term outlook for the edible oil companies is
expected to be stable on steady edible oil domestic demand and improvement in operating
margin due to increasing refining operation.

Rating Dispersion

CAREs ratings in the edible oil sector fall predominantly in the BBB, BBand
Bcategories on account of small scale of operations of the entities, susceptibility of
profitability to volatility in raw material prices and intense competition. As depicted below, of
the total 67 edible oil companies rated by CARE as on July 11, 2016, about 35% fall under
the investment grade category.

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 V.V.V & SONS EDIBLE OIL PVT LTD

1.2 COMPANY PROFILE

Mr.V.V.Vanniaperumal has an exemplary track record in the business world of Tamil

Nadu, South India, since 1943. He had three illustrious sons who built up the business empire
in edible sesame oil as traditional family business. Their business base was constructed in the
business town- Virudhunagar, 30 kms from Madurai airport.

Mr. V.V.V. Rajendran, son of Mr.V.V.Vanniaperumal was the founder of the Idhayam
Group in the year 1986. He, with an experience of more than 43 years launched sesame oil in
a new consumer packing in the brand name IDHAYAM. The Group was built with the main
object ofsincerity and hard work. Commitment to quality was their key to success.

MR. V.V.V. Rajendran passed away in the year 1994 at the age of 65.

Being the eldest son, Mr.V.R.Muthu, led his brothers, Mr.R.Sathyam and
Mr.R.Thendralto bring the business to greater heights. Under his leadership, the company
moved towards automation in production and packaging, and increased domestic as well as
export sales.

GrowthGrowthand more Growth

Like learning, there is no end to growth in business. Business is enthusiasm. It is

performance, achievement and satisfaction. IDHAYAM oil has lit the lamp of prosperity and
health in millions of homes. That, Mr.V.R.Muthu consider as blessing.

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Origin of the Brand

IDHAYAMthe name gets its origin from Hriday a Sanskrit word, which means
Heart.

The high unsaturation of Sesame oil, due to the presence of almost equal levels of
oleic and linoleic acid along with the natural antioxidant compounds render many favourable
health attributes viz., hypocholesteremic and cardiac friendly heart friendly. Thus, the name
IDHAYAM.

Profile the Business

Never compromising on its premium raw materials, the specially, carefully selected
sesame seeds are mechanically cleaned. Palm jaggery, which has the properties of a
preservative, is used in the production of IDHAYAM sesame oil. The company packs and
trades sesame oil under three brand names IDHAYAM, DELIT, and SIM SIM.

Selling 15000 tonnes annually, the company is placed as the leader in sesame oil
industry in India.

Product Development

The company is constantly doing research and development to provide our customers
with high quality, innovative products.

In 1992, cleaned sesame seeds were packed in small packs and marketed under the
brand name SAMBANDHI.

In 2001, the company launched wide varieties of appalam (papped) under the brand
name DOTS in different flavours. Appalam is a popular dish of south Indians.

In 2005, keeping the Calcium content of sesame seeds in mind, the company has
innovated a new product, sweet-coated sesame seeds. That is brought into the market under
the brand name TAHINI. TAHINI caters to the need of calcium among women and
children.

In 2005, the company innovated a health care product for oil pulling under the brand
name IDHAYAM WEALTH.

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 Ayurveda recommends the process- GARGLING WITH SESMAE OIL, which
increases immunity and prevents our body from many major diseases.

In 2006, the company started manufacture of Peanut oil, a deep frying medium and
marketed under the brand name IDHAYAM MANTRA.

The company launched its new product, IDHAYAM HARDIL mustard oil for Northen
States of India.

These oils not only enhance the flavour of any dish, they make cooking more
delightful and enjoyable.

They sell their products to more than 10 countries with customer base in USA, Gulf
Countries, Singapore, Canada, Malaysia, Australia, Sri Lanka, UK, Russia, Norway, France,
Denmark, South Africa, Port Louis, New Zealand, Switzerland, Mauritius and Scotland.

Over the years they have proven their selves to be the preferred supplier of edible oils.

They built long term relationships with the most reliable suppliers of raw materials in
the country, major distributors and leading retail systems in the operating in the face of the
ever changing global economy, They are dedicated to remain at the forefront of the
evolution so as to serve customer better. With a long-term approach to their business goal, the
company is ever receptive to market demands.

With their commitment and track record in the field, they believe that they can offer a
mutually beneficial relationship to their business partners for continued growth, well into 21 st
century.

Quality assurance activities are carried by their well trained staff using sophisticated
equipment to ensure that their products will arrive at their customers doorstep virtually free
from defects.

They can offer all their products with their brand name or with a private brand name,
if anyone prefer.

Vision

To be a leading and respected company in providing high quality edible oils with
worldwide visibility.

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Mission

Dedicated to deliver premium quality sesame oil through continuous improvement in

quality with an uncompromised level of service, investment in process technology, innovative
packaging, human resources and frequent update of R & D, striving to achieve worldwide
recognition as a leading supplier in the industry.

Branches

Branch Products Production

Virudhunagar Sesame Oil Plant 1

Villipathiri Sesame Oil Plant 2

Varaloti Groundnut Oil Plant 3

Types of Products

Idhayam (Sesame Oil, 1986)

The IDHAYAM Company produced their first product in the name ofIDHAYAM
Gingelly oil. It introduced in the year of 1986. This product reaches many people to use of it.
And it earns more profit to develop their business.

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 Sambanthi (Sesame Seeds, 1986)

The Sambanthi sesame seeds also introduced in the same year of 1986. This product
includes three types of products white seed, black seed and black and white seed mixed
product.

Idhayam Delit (Sesame Oil, 1996)

The Delit is introduced in the year of 1996. This

product is very costly product in the IDHAYAM products. And the Delit is made by only the
white sesame seed.

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 Dots (Appalam, 2001)

Dots appalam directly purchasing from the purchasing from Chennai and it will pack by
the IDHAYAM Dots labels and then it goes to sale.

SimSim (Sesame Oil, 2004)

SimSim sesame oil introduced in the year of 2004.This is also the sesame oil. And it is the
minimum cost oil to buy everyone.

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 Tahini (Sweet Seed, 2005)

Tahini is the different product from the IDHAYAM Company. It is the sweet seed to eat.
The sesame seed filled with the sugar water.

Idhayam Wealth(Oil Pulling, 2005)

IDHAYAM introduced wealth for the oil pulling concept. And the oil reaches many
people. The company give the ads to promote the oil polling concept.

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 Mantra (Peanut Oil, 2006)

The Mantra oil is introduced in 2006. It is the peanut oil. This product saleis too equal to
the sesame oil.

Idhayam Hardil (Mustard Oil, 2006)

Hardil oil purchase from the outside and it will packed by the IDHAYAM and it will
move to the sales.

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 Vanga (Sesame Oil, 2009)

The Vanga refined oil purchase from the outside and it will pack by the IDHAYAM then
it goes to sales

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1.3 ORGANISATION CHART OF THE V.V.V & SONS EDIBLE OILS PVT LTD

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 CHAPTER II

2.1 PRODUCTION DEPARTMENT

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 Production is the functional area responsible for turning inputs into finished outputs
through a series of production processes. The production manager is responsible for making
sure that raw materials are provided and made into finished goods effectively. The manager
must make sure that work is carried out smoothly, and must supervise procedures for making
work more efficient and more enjoyable.

Four Production Sub-Function

Production and Planning

Purchasing
Storing
Design and Technical Support

Production Flow Chart

PRODUCTION MANAGER

ASSITANT MANAGERS

SKILLED WORKERS

LABOURS

Production Manager

Responsiblefor entire production activities.

Assistant Manager

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 The Assistant managers will help the Manager and the assistant manager controls the
all workers.

Skilled Workers

Maintain attendance and monitoring activities for both workers and machines.

Unskilled Workers

To give the consumer quality products.

To increase the productivity
To reduce the cost of production & wastages.
To maintain the quality of the products.

Cleaning the Seeds

Two Buhler Machines for cleaning the seeds.

1. Q2B Capacity Per Hour 4000 Kg (Seeds)

2. Q2A Capacity Per Hour 2000 Kg (Seeds)

BUHLER FLOW CHART

In Take Hopper

Elevator - 1

Diverter - A
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 Classifier - A Classifier - B

Aspirator - A Aspirator - B

Elevator - 3
Elevator - 2

Hopper
De-stoner

Declassified
Elevator - 4

Diverter - B

Aspirator Aspirator

Roller Box Roller Box

Elevator - 5

Bin

In Take Hopper

The gingerly seeds will fill into the hopper by the elevators. The capacity of hopper is
100 bags. There are three types of sesame seed (Red seed, White seed and Black seed)
mixing for get the better quality oil.

Elevator

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 Elevator is used to move the seeds into the next level of cleaning process. Two
elevators used to move the seed. 30 conveyer boxes attached in the elevator. It moves the
seeds fast and quick.

Classifier

It is used to remove the sticks, and other dusts. There are 3 sub classifiers in the
classifier. The first sub classifier removes the large size sticks. And the second sub classifier
filters the medium size sticks. Finally the third sub classifier removes the small sticks and
dust.

DeStoner

To separate the stones mixed with the seeds. Two sub de-stoner in the De-Stoner. First
sub de-stoner removes the big size stones. And the second sub de-stoner removes small size
stones.

Aspirator

Aspirator helps to identify the weight less seeds and weighted seeds. And the
weighted seeds move to the next cleaning process. The aspirator works with the help of air.
The air will remove the weight less seeds.

Roller box

This is used to remove the small iron particles in the seeds. The 4 sub rollers in the
roller box to remove the iron particles. The 4 rollers are doing the same process.

PRODUCTION PROCESS

FROM CLEANING
UNIT

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 1ST CRUSH
Sample

Sample
LAB TEST UNDER GROUND TANK
2ST CRUSH
Sample

LAB TEST Sample

1st FILTER

2nd FILTER Sample

OVERHEAD
TANK

CENTRIFUGE
PACKAGE
SECTION FILTER

From Cleaning Unit

After cleaning the seed it will goes to the manufacturing of products. The labours
move the bags into the crushing. The seeds go to the crushing machine.

1STCrush

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 It is the first crush to get the oil from the sesame seeds. The stream will helps to easily
get the oil form the crushing. The jaggeries add with the first crush. The ratio of jaggery mix
one kg per 75 kg seeds.

2NDCrush

Again it will be move to another crusher, to get more oil from the seed.After the first
crush the oil cake will come out from the machine. Thelabours help to get the oil cakes and
pack to sale.

Under Ground Tank

After the crushing the oil will be sent to the tank to store the unfiltered oil.
Underground tank sizes is height 2 meters, length 2 meters, and width 0.75 meters.

Sample Oil

Each and every time the sample oil will go to the lab for check the fat contents. The
stored underground oil goes to the lab test.

1STFilter

The stored oil will pump to the 1 st filter to clean the oil. It filters the oil with the help
of first air compressor. And it will goes to the first tank.

2ND Filter

Once again the oil will send to the 2nd filter to get more purified oil. Second filter also
use the air compressor to pumping the oil. Finally it will store in the overhead tank.

Overhead Tank

The filtered oil will be stored in the overhead tank for another process of cleaning.

Centrifuge Filter

The next process is to remove the dusts from the oil. The oil will cross through 13
cotton filter. It will clean the oil and get purified oil.

Packing Section

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 Finally, it will be sent to the packing section tank. All process completed the cleaned
oil move to the packing section tank for the packing.

PACKING DEPARTMENT

PACKING PROCESS

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 PACKING
Y FILLING Y
OVER
HEAD FILTER TANK FILTER
TANK

PACKING

MACHINE

SEND TO WEIGHT CARTON WEIGHT

GODOWN TEST BOX TEST

WEIGHT

TEST

STOCK AT DESPACH

GODOWN OF GOODS

OUTER LAB
TESTING

Packing Overhead Tank

The output will store in the overhead tank. There four overhead tanks for storing the
cleaned oil. The capacity of each tank is 2000 lt. At the production time totally 8000 lt will be
stored in the overhead tanks.

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Y Filter

The final filter in the packing section. This filtered oil directly sent to the filing tank.

Filling Tank

And the cleaned oil will stored in the filling tank for packing. The capacity of the
filing tank is 4000 lt to pack the oil.

Packing Machine

The packing machine will automatically fill oil in the pouch and cans. The 4 packing
machine for pack the oil. One machine for filing the cans and other 3 machines are filing the
pouches.

Weight Test

And the packed pouches and cans will move for check the weights. The conveyer
helps to move the packed pouches and cans into the weight test.

Carton Box

The Carton Box will pack the number of cans and pouches into the box. This box also
helps to pack the pouches and cans with the use of plastic cover.

Send to Godown

After packing the goods moves to the godown. The two conveyers used to move the
packed box to the godown.

Stock at Godown

The finished goods are stored in the godown for stock maintaining. After finishing
each and every shift the stock detail will maintain by the godown incharge and the report will
submit to the branch manager.

Despatch of Goods

The finished goods will be despatch by van or container from godown. The vans used
to send the goods within the India. And the containers used to exports to the other countries.

Outer Lab Testing

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 The finished goods will give the lab test to the outside of organisation. If the report is
not satisfied the oil will go to the reprocess to increase the quality.

Lab Tests

The oil will check within the lab of the Organisation. Eight contents importance to the
oil. There are

Free Fatty Acid

Moisture Content
Iodine Value
Bellier Turbidity Temperature
Argemone Oil Test
Soap Content
Boudouin Test
Peroxide Value

Outside Lab Test

The produced oil will send to the Chennai, Tamil Nadu Oil & Seeds Association
(CTOSA) to check the eight contents. And the reports will send by the association to the
IDHAYAM Head Office.

2.2 PURCHASE DEPAERMENT

Purchasing is the first phase of Material Management. Purchasing means procurement

of goods and services from some external agencies. The object of purchase department is to
arrange the supply of materials, spare parts and services or semi finished goods, required by
the organisation to produce the desired product, from some agency or source outside the
organisation.

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 The company purchase the Sesame Seeds, Groundnut Seeds, and Jaggery from the
outsiders. And the company give the importance to the quality of the raw material not for the
price.

Types of Sesame Seeds

There are three types of sesame seed was used to the production.

Red Seed
Black Seed
White Seed

Season of Purchase

The company will buy raw material from the all over India. The raw material can
purchase on the basis of the season of harvesting.

Tamil Nadu March, June

South India July, August
North India November, March

Payment of Purchase

The company pay cash through the net banking. When the raw materials arrived to the
factory, it will check by the experts of the company. If the raw materials not satisfy the
experts, that will return to the particular seller. After, verification of the raw material the next
day total amount will pay to the certain parties through the net banking.

Direct Purchase

The Direct Purchase will make within the Tamil Nadu.

Thirukovilur
JeyamKondan
Puttur
Thirusenkodu
Trichy

Tamil Nadu Commitee Purchase (Tender)

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 Yearly once meet for the formers. To advices farmers how to produces the sesame
seeds. And ask those needs and demands. Committee purchase of weights of the bags will 75
kgs and 80 kgs. The locations of tender within the Tamil Nadu.

Virudhachalam
Thindivanam
Vilupuram
Senji
GurunchiPari
Ullundhurpettai

Other States

The company will purchase the raw material from the outside of the Tamil Nadu also.

Andra Pradesh
Mysore
Gujarat
Asham
Kolkata
Orisa
Maharastra
New Delhi
Udhra Pradesh
Mathiya Pradesh

Purchasing Finished Goods From Outside

DOTS (Appalam) was purchasing from Chennai and it will pack by the
IDHAYAM DOTS labels and then it goes to sale.
HARDIL (Mustard Oil) is bought from the North India and it will pack by the
IDHAYAM HARDIL labels and then it goes to sale.

Purchase Flow Chart

PURCHASE MANAGER

OFFICER

JUNIOR OFFICER

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2.3 SALES DEPARTMENT

A sale is the exchange of a commodity or money as the price of a good or a

service. Sales is activity related to selling or the amount of goods or services sold in a given
time period.

Target of Sales
The Company gives the target for the whole sellers 3 Targets per year. Comparing to
2014 2015 sales of good 2015 2016 sales of good increased to 50%. The benefits of the
completing targets: Incentives Rs 5 per 20 lt.

Distributors within India

There are many distributors within the India. They are follows
1. Chennai 50 Distributors.
2. Salem 60 Distributors.

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 3. Other Districts 74 Distributors.
4. All India 450 Distributors.

Exports
The company will do the business within India and outside India also. The exports
will categorize into two types. There are

1. Direct Exports.
2. Deemed Exports.
The company pays the Chipping Bill and Bill of Leading for the each and every
Export of the products.

Direct Exports
The company will directly sell their products to the parties. And the direct exports
only through the Dollars. First, parties pay the money after the company will send the goods
via Ship. The dealings made by only mail. No MRP (Market Retail Price) in the label of the
product. The goods send via the Chennai and Thuthukudi Ports.

The sales volumes of the exports are follows:

USA 30%
SINGAPORE 25%
OTHERS 45%
Deemed Exports
Any parties buy the goods from the IDHAYAM and they change the label and sell to
the third parties. They called as Deemed Exports. The Exporters will follow the same way of
sending the goods. (First, parties pay the money after the company will send the goods via
Ship.The dealings made by only mail. No MRP (Market Retail Price) in the label of the
product).

Exporting Countries
USA (CALIFORNIA, NEW YORK CITY and etc.)
UK (ENGLAND, SCOTLAND and etc.)

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 UAE (SAUDI ARABIA, DUBAI and etc.)

Objectives of Sales

1. Sales Volume
2. Contribution to Profit
3. Continuous Growth
4. Time Delivery
5. Customer Satisfaction
6. Achieve the Target Order

Sales Department Flow Chart

SALES MANAGER

ASSISTANT MANAGER

JUNIOR MANAGER

SENIOR ASSISTANT

OFFICER
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 SENIOR OFFICE

JUNIOR OFFICER

OFFICER

ASSISTANT

2.4 MARKETING DEPARTMENT

The Marketing Department will handle by the Idhayam Company Representative

(ICR). The Representative goes to the every branch in the India. And they know about the
any defects in the product.

Sales Promotion

Sales Promotion refers to those marketing activities that stimulate consumer shows
and expositions.

Sales Promotion Techniques Used by IDHAYAM

1. 200 ml sesame oil pouch gifted for who bought above Rs.1000 in the super markets.
2. Quantity Discounts to the Distributors.
3. To promote the oil pulling concepts to consumers via give the samples to the public.
4. The company will conduct the exhibition to promote the business in the various
locations Chennai, Bangalore, Kolkata, Mumbai, Kerala and etc. Including all
exporting countries.
5. They give the assignment to the project students. The projects students will help to
join 10 people in the one year of subscription of the oil pulling.

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Objectives

1. To increase the sales by publicity through the media which are complementary to
press and poster advertising.
2. To disseminate information through salesman, dealers etc., so as to ensure the product
getting into satisfactory use by the ultimate consumer.
3. To stimulate consumers to make purchases at the point of purchase.
4. To prompt existing customers to buy more.
5. To introduce new products.
6. To attract new customers.
7. To meet competition from others effectively.
8. To check seasonal decline in the volume of sales.

ADVERTISEMENT

Advertising is a paid form of publicity directed at a mass consumer. The purpose of

advertisement is to inform the consumer, influence them and increase the sales.

Idhayam advertise the products like the Jothika (Tamil Cinema Actress) acted in the
Idhayam Sesame Oil.
And the Oil Pulling advertisement telecasting in the SUN TV, VIJAY TV and etc.

Now they are reducing the Tele Vision advertisement for the purpose of to give the
product to the low cost.

Marketing Flow Chart

MARKETING MANAGER

ASSISTANT MANAGER

JUNIOR MANAGER

SENIOR ASSISTANT 34 | P a g e
 OFFICER

SENIOR OFFICER

2.5 FINANCE DEPARTMENT

The part of an organisation that manages its money. The business functions of a
finance department include planning, organising, accounting for and controlling its
companys finances.

Planning

The planning means detailed plans to achieve the needs or demands. In V.V.V & Sons
Edible Oil Pvt Ltd the planning process is

1. Identify the goals or objectives.

2. Formulating strategies to achieve them.
3. Work for achieve the goals.
4. And monitors all steps and process.

Organising

Arranging several components into order or structure.

Accounting

Accounting is a systematic process of identifying, recording, measuring, classifying,

verifying, summarising, and communicating financial information in the organisation.Keep
records for raw-materials, finished goods, labours profile, etc. and just forward to
administrative process.

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 1. Methods for recording transactions.
2. Keeping financial records.
3. Performing Internal Audits.
4. Report the financial information to the management.
5. Advising on taxations.

Accounting information provides.

1. Resources available to the organisation (Man Power, Raw Material and etc.)
2. To finance those resources.
3. Results achieved through their use.

Controlling

Control money of the organisation. Help to controlling the resources. Reduces the
various expenses of the organisation.

Finance Department Flow Chart

FINANCE MANAGER

JUNIOR OFFICER

JUNIOR ASSISTANTS

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Bank Department

In V.V.V & Sons Edible Oil Pvt Ltd does no cash transaction. Here only the online
transaction happens. The company use the HDFC Bank for the online transactions. Each and
every transaction like salary to employees, payment to supplier, payment of buyers, and
payment of expenses are done through online.

Bank Department Flow Chart

BANK DEPT MANAGER

JUNIOR MANAGER

JUNIOR OFFICER

SENIOR ASSITANT

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2.6 HUMAN RESOURCE DEPARTMENT

Human Resources is the company department charged with finding, screening,

recruiting and training job applicants, as well as administering employees benefit program.

External Recruitment

If the organisation wants employees, they publish the advertisement in the newspapers
like Dina Malar, Dina Thanthi, Dina Karan and etc or they give the ad in the local television
channels like Aakash, Honey, King and etc.

Recruitment

Recruitment is a core function of human resource management. Recruitment refers to

the overall processes of attracting, selecting and appointing suitable candidates for jobs
within the Organisation.

Selection Process

The selection process refers to the steps involved in choosing people who have the
right qualifications to fill a current or future job.

Application Form

The applicants must fill the application for applying job in the company. The
form includes name, father name, phone no, address, religion, caste, marital status and etc.
And the applicants must be submitting the two reference letter to the company.

Resume

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 The applicants must submit the resume about them. It requires the all the
education and personal details of the applicants.

Interview

The HR will interview the applicants. And the HR didnt ask about the
theoretical questions. They just want to know about applicants details.

Training

The applicants send to the factory or head office to the training period of six
months. If the applicants training report satisfy the HR they will appoint for the suitable job.
If the HR is not satisfy about the training report they will be send out from the organisation.

Jobfor Applicants

After the training period, they will move to the permanent job in the company,
and the organisation will give the stipend salary for the training period.

Human Resource Department Flow Chart

HR MANAGER

ASSISTANT MANAGER

Facilities

Cleanliness

Cleanliness at an Organisation is very important. Every day the factory and head
office is cleaned by the sweepers.

Disposal of Wastes and Effluents

Everyday wastages and effluents are disposed as per Government policies.

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Drinking Water

The mineral water is provided for the employees.

Lighting

The lighting facilities are excellently provided by the organisations. This company
having tube lights mercurylambs using these lighting system. They are ramming company in
night shift used in light.

Refreshment

The Organisation provides tea, coffee and butter milk to the employees on minimum
cost.

Latrines and Urinals

They are providing latrines and urinals for workers. The Latrines are cleaned regularly
by sweepers whose primary duty is to keep it and hygiene.

Uniform

The entire work force should wear the uniform on all the working days of the
Organisation.

PF

The Organisation provides the Provident Fund. The PF contribution is both employer
and employee at 12%.

Bonus

The Organisation provides the Bonus to employees. The one month salary is given to
as bonus.

Employee State Insurance (ESI)

The company give the ESI to the employees. And the employee contribution is 1.75%
the employer contribution is 4.75%.

Helmets for Engineering Workers

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 The company provides the helmet for engineering workers as a measure of safety
procedure.

Medical Allowance

The company providing the medical allowance to the employees suffered with injuries
within the organisation. The medical allowance is Rs. 1200/- to Rs. 2000/- per month.

Education Fees

The organisation provides education fees to the wards of the employees. The
contribution of employer:

Monthly Donation For 12 months

Purpose of Donation
S.No amount one child donation amount one
sponsorship child sponsorship
1. School Fee 500 6000
2. Tuition Fee 300 3600
3. Sponsoring a Child 800 9600

Tour

Theemployee who works continuously for a period of 20 25 years the organisation

sends the employees to Singapore, Malaysia, and etc. Where complete expenses will be bear
by the organisation.

Other Activities

The company takes the responsible of the Rotatory Club Meeting Arrangements.
The Organisations give the Scholar Ship to the school and college students.
And provide the cash price to district mark holders.
Also provide the cash price to the sports person.

Trade Union

There is no need for the trade union in the V.V.V & Sons Edible Oil Pvt Ltd. Because
the company gives full facilities to their employees.

Holiday

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 The workers, staffs, securities have weekly one day holiday. And the company declare
holiday on Government holiday and local festival holiday.

Leave Policy

The leave policies are given below

Sick Leave

The employee can take one day for the sick leave. If any critical condition the
employee can take more than one day with proper information.

Disability Leave

Eligible employees may receive short term disability leave up to one year.

Compensatory Leave

Employee may earn compensatory leave for approved time for completion of
assignment.

Bonus Leave

If the employee continuously worker for particular period without taking any leave
the bonus leave will give for one day.

Facility Department Flow Chart

FACILITY DEPT
MANAGER

JUNIOR OFFICER

JUNIOR ASSISTANTS

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2.7 INFORMATION TECHNOLOGY DEPARTMENT

An Information Technology is the department within a company that is monitoring

and maintaining systems and services.

Each and every department gather the information from the report of MIS. Thereport
will be submitted to the Managing Director. It helps find out the turnover. Key Data, Raw
Data is helps to input parameters of MIS.

The Various MIS reports are Sales Overall Turnover Calculation, Production Oriented
Report, and Analysis of Purchase & Sales. The tasks performed through MIS are Product
Price Fixing, Discount to the Buyers, and Target to the Sales Person.

The most reports generate in the organisation are Sales Turnover, Party wise turnover,
Period Turnover. The organisation minimum generates 30 different types of report. The
generated report plays the role of Casting Report in Decision Making Process.

The main functions of MIS input for the output in the organisation. The Water Fall
model use for Information Technology in V.V.V & Sons Edible Oil Pvt Ltd.

Problems Faced in Implementation

The bug fixing and system requirements are the main problems faced in the
maintenance phase. The role of DBA is Structure of DBA, Creation of DBA, and Maintaining
DBA, Analyse the Data, Rectification of Data Loss and Backup & Restore the data. The
problems faced in the implementation phase Hardware Requirements, Software
Requirements, and Adaptation of User.

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Types of Database

The five database use in the organisation.

1. Relational Database.
2. Operational Database.
3. Database Warehouse.
4. End User Database.
5. Distributed Database.

Estimation of Cost of Software Project

The cost of software project is estimate on the basis of man power, working hours,
resources and equipments.

Enterprise Resource Planning (ERP)

The company implement an ERP system for systematic planning, optimum utilisation
of resources and better decision making.

Benefits

The ERP used to

1. Casting
2. Time Management
3. Reducing Man Power
4. Speed
5. Accuracy.

The ERP training program is Demo User to the employees. The employee doesnt
make any mistakes in the real software. So it helps to develop their knowledge about the ERP.

The company using Internet, Intranet (LAN), Extranet (WAN) for communicating,
shares the information within the organisation.

Software Using in the Company

The company use the software ICAND. They use the software for share the
information like accounts, purchase details, sales details, stock details and etc.

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Information Technology Flow Chart

IT MANAGER

OFFICER

JUNIOR OFFICER

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2.8 CHAIRMAN SECRARIATE DEPARTMENT

Chairman Secrariate Department means doing the work for instead of

chairman. The Chairman Secrariate Department fix the appointment to meet the chairman.
And the department reply the gmail to the buyer or seller mails guidance by the chairman. If
the chairman is not available in the country, they will do work instead of the chairman. The
department will manage the functions of the organisation.

CHAIRMAN SECRARIATE DEPARTMENT FLOW CHART

CS MANAGER

JUNIOR OFFICER

SENIOR ASSISTANT

ASSISTANT

JUNIOR ASSITANT

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3. CONCLUSION

During the training period I have been given better support from the staff of V.V.V &
Sons Edible Oil Pvt Ltd.Accumulation of the practical knowledge without practical
experience is useless.The training period is extremely useful in another sense too that its a
good opportunity of moving with employees of a company in a private sector.I sincerely feel
that working day enough to learn the practical aspects. How over the working day training
was really useful to me.

I learned how they producing the process of oil. And how they maintain quality of the
oil. Then how purchasing the raw material from the better cost and better quality around
India. I earn the knowledge from the company how to maintain the employees in the
organisation. My sincere thanks to allow me to the Summer Internship Project in their
Organisation.

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