CHAPTER 1

INTRODUCTION
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION TO THE STUDY

An organization is a social unit of people, systematically structured and managed to

meet a need or to presume collective goals on a continuous basis. It has a management

structure that determines relationship between function and position, and subdivides

and delegates roles, responsibilities, and authority to carry out defined task.

Organization study is the process of studying the overall functions of the

organization. Therefore the study of organizational structure, management process,

functions, etc. are very significant .Also the study is important for future managers. In

this study the organization is studied from a macro perspective.

Fruits and vegetables are necessary to stay healthy and to keep the human body

free from diseases. Nature provides us with a lot of goodness and it is up to us to find

it out and consume them in right proportion to stay healthy and free from diseases.

One of the best ways to utilize this goodness is through juice. Juices get absorbed

quickly and are easy on digestive system. It is a liquid naturally contained in fruit

and vegetable tissues.

With the aim of preparation of fruit jam and its proper marketing, a lot of fruit

juice manufacturing companies are established. This organization study is conducted

at Vazhakulam Agro Processing Factory Unit of Vegetable and Food Promotion

Council, Kerala. It is a juice manufacturing company which started its operation in

1998.
 The study also provides information about its history, evolution and incorporation

details and analysis of present performance. Finally it tries to put forward some

suggestions to establish a future vision of the company.

1.2 SIGNIFICANCE OF THE STUDY

The organizational study is intended to provide industrial exposure and bridge the

gap between theory and practice. It is conducted to understand the functions,

processes and procedures of different departments of the company The study was

conducted to know how the entire organization is functioning and also different

process of the organization .This study was intended to cover all the departments of

the organization and also to acquire knowledge from the organizational leaders.

1.3 OBJECTIVES OF THE STUDY

The main objective of the study is to study the organizational structure of the

company. The specific objectives include:-

 To understand the functional departmental structure of the organization.

 To analyze operations of each department of the company.

 To conduct a SWOT analysis of the organization.

 To know the quality management in the organization.

1.4 METHODOLOGY OF THE STUDY

The required data for the study are collected through both primary and secondary

data sources.

1.4.1 Methods of data collection

1.4.1.1 Primary Data

 Direct conversation (interview) with the departmental heads

  Direct observation of the company.

1.4.1.2 Secondary Data

 Company Brouchers

 Company website

 Company Annual Report

1.5 LIMITATIONS OF THE STUDY

The limitations of the study are:-

 Short duration of the study.

 Limited details given by the officers.

 Confidential nature of certain data.

 Busy and tight schedules of the departmental heads and supervisors

restricted flow of information.

1.6 CHAPTER SCHEME

Chapter 1: Introduction

This chapter consist of the organization where the study has conducted,

introduction to the study, significance of the study, the objectives of the study, the

methodology, chapter scheme and the limitation of the study

Chapter 2: Profile of the Industry

This chapter gives over all view about the juice drinks industries and its

growth fruit to time to time in global scenario, national scenario, and state scenario.
Chapter 3: Profile of the Organization

This chapter gives the profile of The VAFPCL, product profile and

organizational structure of VAFPCL. And also gives an idea about the different

functional departments in the organization and its responsibilities.

Chapter 4: Data Analysis and Interpretation

SWOT analysis reveals the present position of the organization. It is the

assessment of strength, opportunities, weakness and threats faced by the company.

Chapter 5: Findings, Recommendations and Conclusion

This chapter shows the findings, recommendation and conclusions that are drawn

from the study.

 CHAPTER- II

PROFILE OF THE INDUSTRY

 CHAPTER- II

PROFILE OF THE INDUSTRY

2.1 INDUSTRY AT THE GLANCE

India fruit juice market is majorly driven by the factors such as rising health

consciousness, as a result of which the consumers now prefer more organic beverages over

carbonated drinks which are free from added sugar and artificial flavors and preservatives.

Children centered fruit juice market is one of the high potential market, which is barely

promoted by any producer of fruit juices. As a major market for fruit drinks, children fruit

drink market majorly consists of protein drinks and milk beverages. Under the requirement

of higher nutrient values, children fruit juices fascinate consumers with attractive packaging

and designs, which ensures positive market prospects.

Goldstein Research analyst forecast fruit juices have created a space for

themselves in Indian household menus, as a part of a family’s breakfast, social

gatherings, and evening snacks. Further, the market is anticipated to reach USD 4.9

billion at a CAGR of 17.1% over the forecast period backed by the significant

adoption of health drinks by young consumers in India.

Based on product type, fruit drinks, which have a maximum of 30% fruit

content, are the largest product selling category, with a 60% revenue share of the

market. Fruit Juices, on the other hand, are 100% composed of fruit content, and

acquires about 30% of the market share and are likely to be the fastest growing

segment owing to rising health awareness among Indian consumers.

India Fruit Juices Market Outlook 2016-2024, has been prepared based on an

in-depth market analysis from industry experts. The report covers the competitive

landscape and current position of major players in the India fruit juices market. The
report also includes Porter's five force model, SWOT analysis, company profiling,

business strategies of market players and their business models. India fruit juices

market report also recognizes value chain analysis to understand the cost

differentiation to provide a competitive advantage to the existing and new entry

players.

Our India fruit juices market report comprises of the following companies as

the key players in the India fruit juices market: Dabur India, PepsiCo India, Coca-

Cola India, ITC Limited, Surya Food and Agro Ltd., Manpasand Beverages, Hector

Beverages, Del Monte, Mother Dairy Fruit & Vegetable Pvt. Ltd. and Parle Agro.

According to the report, a major driver in India fruit juices market is rising

disposable income of Indian consumers and changing eating habits. In the past few

years, there has been a significant increase in the number of nuclear families, coupled

with a surge in the number of working couples, which has led to higher disposable

incomes. This has nurtured the affordability of packaged fruit juices across the

country, which are rapidly replacing fresh homemade juices and becoming an

essential item on breakfast tables.

2.1.1 Global Scenario

Survey results reveal that global food and beverage industry manufacturer and

supplier respondents identify China as the key BRIC region for their current business

operations. Additionally, 37% manufacturer respondents identified they also carry out

business dealings in Russia, whereas, 53% of supplier respondents identified India;

furthermore global food and beverage industry respondents across North America and

the rest of the World identified that their company is currently doing business with

China and Brazil

 Survey results reveal that global food and beverage industry manufacturer

respondents are more inclined to do business with China in 2013, while supplier

respondents favor Brazil. Moreover,16% of manufacturer respondents identify that

they are willing to do business with India, while 17% of supplier respondents

identified Russia; furthermore, a higher proportion of respondents from small

companies indicated a preference for business with Brazil in 2013.

Regardless of manufacturer and supplier categorization, respondents envisage

the ‘policy towards foreign investment’ to improve significantly in 2013 across all

four BRIC, with an aim to ease up business opportunities. Additionally, Global food

and beverage manufacturers identify the ‘physical infrastructure’ of Russia and China

to witness some positive changes in 2013,whereas the ‘availability of local credit’ is

expected to witness some positive changes in Brazil and a ‘policy towards foreign

investment’ is expected to witness some positive changes in India.

2.1.2 National Scenario

India offers greatest potential for the beverage industry. The country accounts

for almost 10 percent of global beverage consumption. That makes beverage

consumption in India the third largest in the world after the United States and China.

Although the beverage industry has been in existence for quite some time

now, yet it is still at an infant stage considering its size and place in the market. India

stands at third number in the consumption of beverage, behind United States and

China. It accounts for almost 10 per cent of global beverage consumption. Today, it is

being looked as a country that offers the greatest potential, even more so than China.

In 2013, the beverage industry in India is being estimated to grow at 17 per cent.

Non-alcoholic Drinks companies actually see India as a

potential market because of the kind of summer that India sees. The Coca-Cola Co
reported its profit climbed 43 percent in the second quarter to two billion dollar,

getting a boost from double-digit unit case volume growth. The Indian CSD

(carbonated soft drinks) market stands at 1.2 billion dollar and the fruit-

based beverages and bottled water at 600 million dollar and 300 million dollar,

respectively.

The wine industry in India is one of the most sought after market at present

and all eyes are on it. The budget announced by the finance minister is not being seen

as very advantageous to the wine industry as it did not announce any significant or

major benefits all round for it. It was expected to make wine sector a part of the food

processing industry, which would lead to uniformity in the state-wise tax structures.

The wine industry in India needs investment to grow to its rightful size of about 30

million cases (20 times the present volume) and it is possible only with

lower production and marketing costs, taxes and increased competition.

The budget was expected to cut down the taxes on beer that is more than most

of the countries in the world. While the average global taxes on price of the beer are

33.6 per cent, in India it’s about 49 per cent and therefore, affordability of beer in the

country is lowest compared to world standards. Hence, the perception is that the

government is encouraging hard-liquor which is more harmful to the consumers.

However, the impact on non-alcoholic industry has been different. For e.g.,

packaged coconut water will be cheaper by rupees three for 200ml as the retail prices

have been reduced from Rs.15 to Rs 12, thanks to the abolition of a 16 per cent excise

duty. The finance minister has also totally withdrawn the 16 per cent excise duty on

tea and coffee mixes and puffed rice. India (1002 Million kgs) along with China (990

Million kgs), Sri Lanka (318.7 Million kgs) and Kenya (286.0 Million kgs) accounts

for about 75 to 80 per cent of the world’s tea production. In May, tea production in
India rose to 71,374 tonnes from 70,267 tonnes a year before. However, output has

declined to 215.84 million kg till May this year from 240.24 million kg in the

same period last year.

The budget has also made dairy majors like Amul, Mother Dairy and Nestle

happy because the customs duty on bactofuges, that separates bacteria from milk and

increases the shelf life of milk, and the Punjab Excise Policy of 1995, has been

abolished. On a bactofuge that cost between Rs.1.5 crore, the companies will

benefited with Rs 8 lakh to Rs 10 lakh a piece. The exemption of 16 percent excise

duty on refrigeration equipment(milk chillers) will save Rs.5 lakh per chiller.

More and more companies are entering and creating niche for themselves in

the Indian beverage industry, the latest being the fast moving consumer goods

(FMCG) company ‘Dabur’. It is coming up a with new fruit flavoured beverage called

‘Real Burst’. In the current scenario, many Indian food and beverage players aim to

invest in Bhutan, as a follow-up of the Indo-ASEAN pact. About 11 key areas have

been identified as areas with enormous opportunities in Bhutan, where Indian and

Bhutanese players can invest. Agriculture, horticulture, agro and food processing,

dairy, pharmaceutical, medicinal plantations are few of them.

2.1.3 State Scenario

In Kerala, pineapple is cultivated in area of 12,500 hectares with a production of

1,02,400 tonnes with a low productivity of 8.2 tonnes per hectare, consistently over

the last few years. The congenial humid climate has favoured the cultivation of

pineapple. The finest quality ‘Mauritius pineapple’ comes from Kerala.

The product of Kerala is very much in demand as a fresh fruit throughout India

and also in foreign countries because it is considered the best quality, sweetness and
has good favour. Although pineapple cultivation is practiced in almost all districts, the

major pineapple producing district is Ernakulam. It accounts for more than 60% of the

area under pineapple cultivation having a share of over 60% of the total production. In

Ernakulam, the pineapple cultivation is more concentrated in certain areas of

Vazhakulam.

In Kerala, pineapple is grown mainly as an inter crop in rubber and coconut, and

also pure crop in garden land and in converted paddy fields. Pineapple fruits are

produced round the year. There is immense potential to increase the area under

pineapple in Kerala as it can be grown as an inter crop in coconut and rubber

plantations. Coconut is grown in about 8 lakh hectares and if pineapple is grown as a

intercrop in coconut garden, it will be solace to the farmers. Special attention can be

given for intercropping pineapple in coconut. Out of the 5 lakh hectares of rubber

grown, above 15000 hectares is replanted every year. Pineapple is grown as an inter

crop for the first 3 years in rubber at the time of replanting.

Pineapple cultivation in rubber will give income to farmers during the period

when there is no income from rubber. However only less than 2 % of the potential are

in Kerala is cultivated with pineapple.

 INTERVIEW SCHEDULE
PRODUCTION DEPARTMENT
● What is the structure of the production department?

● Would are the main functions take place in production process?

● What are the strategies to improve your product quality?

● How the quality assurance maintained?

● From where raw materials are imported?

HUMAN RESOURCE DEPARTMENT

● What is the structure of the human resource department?

● What all welfare benefits do you provide for your employees?

● What are the recruiting & training process done here?

● How employees are motivated in the organization?

● How health and hygiene maintained in the firm?

MARKETING DEPARTMENT

● What are the challenges faced by marketing manager?

● What are the promotional strategies adopted by the company?

● Who are the main competitors?

● Can you explain about your distribution channel?

● What is the structure of the marketing department?

FINANCE DEPARTMENT

● What are the main objectives of the finance department?

● What are the duties and responsibilities of a finance manager in the company?

● What are the various sources of raising funds?

● How many sections are there in finance department?

● What is the structure of the finance department?