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An Organizational Study at

Kerala State Drugs & Pharmaceuticals Ltd

Submitted in partial fulfillment of the requirements for the

award of the degree



Submitted by:
Enrolment No:
Course Code: CC20
Under the guidance of:

Mr.: Shamnath R.S

MG University Off Campus Academic Center



I declare that the project report entitled An organization study

on Kerala State Drugs & Pharmaceutical ltd Submitted by me for
the award of Master of Business Administration of M.G
University is my own work. The report has not been submitted
for the award of any other degree of this university or any



First of all I wish to express my deep gratitude and thanks to God who helped
us in completing the organization study successfully.
I shall remain grateful to. Mr.:BSS IT MISSION
THYACDU for his amble guidance and encouragement for completing the
organization study. I am also extremely grateful to faculty member for their
valuable suggestions and advice regarding this work. I also express my
profound gratitude to project guide Sr. ., Manager, HRM for his
valuable guidance and timely advice and well-wishers for Encouragement given
to us during the course of the project. It is my pleasure to express a deep sense
of grateful
Sr. to ., Manager, Safety & Environment Department
& MIS without his untiring efforts and tremendous background information

this work would not have materialized. I express my sincere

Thanks to all the staff of Kerala State Drugs & Pharmaceutical ltd for
their co-operation during my study in the company. Last but not least we thank
my parents and for all their moral support and help, they had given to me.



Industry Profile & Company Profile
Product Profile
Functional Departments
Personnel Department
Production Department
Commercial Department
Civil Department
SWOT Analysis
Findings & Suggestions


The term organization has been defined by many experts of management in

different ways, and while defining the term they have put emphasis on its different aspects.
This has created a lot of confusion. Generally, organization refers to a group or an
association or an institution of individuals working together for achieving predetermined
common goals. So an organization is inevitable in those situations where two or more
individuals work together to achieve a common objective. It may also defined as a planned
unit formed by individuals for pursuing specific goals. The organization may further be
viewed as a collective entity of individuals putting in joint effort to seek their common
interests. Organizational study is "the examination of how individuals construct
organizational structures, processes, and practices and how these, in turn, shape social
relations and create institutions that ultimately influence people", organizational studies
comprise different areas that deal with the different aspects of the organizations, many of
the approaches are functionalist but critical research also provide alternative frame for
understanding in the field. Organization is the backbone of management. Without efficient
organization, no management can perform its functions smoothly. Sound Organization
contributes greatly to the continuity and success of the enterprise. The organizational study
undergone during the month of May was for partial fulfillment of the award of degree of
Master of Business Administration of Mahatma Gandhi University. It helps to know more
about the functions, structure, policies and different procedures undertaken in an
organization. The study abridges the gap between theoretical knowledge and practical
working condition. The organizational study was conducted at KERALA STATE DRUGS AND
PHARMACEUTICALS Ltd which is the only pharmaceutical undertaking of government of
Kerala. The study helped me to know the various functions in the organization. Every
organization can be conceived as consisting of various subsystem or parts. Effective
functioning of each of these parts is essential for effective functioning of the organization. In
addition, the coordinated functioning of these subsystems also contributes to organizational
effectiveness. For making organizational diagnosis the, strength weakness and potential of
each of the subsystem need to be examined, hi addition the various processes that
contributes to the effective functioning of the organization as a whole to be examined.


The organizational study helps us to familiarize with the practical side of organizational
functions. Thus an analysis is made through studies in which the theoretical aspect is
compared with the actual situation.

The scopes of the study are:

This study aims to acquire an overall knowledge about all the Departments and
procedures being carried out in the organization.
To have an exposure in working environment of an organization
This study help to understand the decision making process in an organization and
also to know the organization system.


The organizational study is to familiarize with a business organization and the

operation of its departments and also interact with the managers at various levels of the
organization hierarchy to acquire awareness about the practical side of the theories. Also
the scope of the study covers examination of the structure of the organization, seeking
information about the products produced and study on the functions of various
departments of the firm.

To carry out a departmental study or analysis at Kerala Drugs and Pharmaceuticals

To familiarize with the organizational function.
To understand and get familiar with all the activities in the company
To understand process flow and management of departments in the company

To get acquainted with the policies, procedure, strategies, and programs adopted by
the company.
To know the inter related department functions of an organization
To familiarize with the organizational structure and various departments.
To find out the Strength, Weakness, Opportunities& Threats of KSDP
To knows the duties and responsibilities of the personnel.


Background The Pharmaceutical Industry today is in the front rank of Indias science-based
industries with wide ranging capabilities in the complex field of drug manufacture and
technology. It ranks very high in the third world, in terms of technology, quality and range of
medicines manufactured. From simple headache pills to sophisticated antibiotics and
complex cardiac compounds, almost every type of medicine is now made indigenously. The
Indian pharmaceutical sector has come a long way, being almost non-existent before 1970
to a prominent provider of healthcare products, meeting almost 95 per cent of the country's
pharmaceuticals needs. The Industry today is in the front rank of Indias science-based
industries with wide ranging capabilities in the complex field of drug manufacture and
technology. It ranks very high in the third world, in terms of technology, quality and range of
medicines manufactured. From simple headache pills to sophisticated antibiotics and
complex cardiac compounds, almost every type of medicine is now made indigenously. The
Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units
with severe price competition and government price control. It has expanded drastically in
the last two decades. There are about 250 large units that control 70 per cent of the market
with market leader holding nearly 7 per cent of the market share and about 8000 Small
Scale Units together which form the core of the pharmaceutical industry in India (including 5
Central Public Sector Units). These units produce the complete range of pharmaceutical
formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs,
i.e., chemicals having therapeutic value and used for production of pharmaceutical
formulations. Background The Pharmaceutical Industry today is in the front rank of Indias
science-based industries with wide ranging capabilities in the complex field of drug
manufacture and technology. It ranks very high in the third world, in terms of technology,
quality and range of medicines manufactured. From simple headache pills to sophisticated
antibiotics and complex cardiac compounds, almost every type of medicine is now made
indigenously. The Indian pharmaceutical sector has come a long way, being almost nonexistent before 1970 to a prominent provider of healthcare products, meeting almost 95 per
cent of the country's pharmaceuticals needs. The Industry today is in the front rank of
Indias science-based industries with wide ranging capabilities in the complex field of drug
manufacture and technology. It ranks very high in the third world, in terms of technology,
quality and range of medicines manufactured. From simple headache pills to sophisticated
antibiotics and complex cardiac compounds, almost every type of medicine is now made
indigenously. The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units with severe price competition and government price control. It has
expanded drastically in the last two decades. There are about 250 large units that control 70

per cent of the market with market leader holding nearly 7 per cent of the market share and
about 8000 Small Scale Units together which form the core of the pharmaceutical industry
in India (including 5 Central Public Sector Units). These units produce the complete range of
pharmaceutical formulations, i.e., medicines ready for consumption by patients and about
350 bulk drugs, i.e., chemicals having therapeutic value and used for production of
pharmaceutical formulations.

Growth Scenario India's pharmaceutical industry is now the third largest in the world in
terms of volume. Its rank is 14th in terms of value. Between September 2008 and
September 2009, the total turnover of India's pharmaceuticals industry was US$ 21.04
billion. The domestic market was worth US$ 12.26 billion. This was reported by the
Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. As per a report by
IMS Health India, the Indian pharmaceutical market reached US$ 10.04 billion in size in July
2010. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5
billion, growing at about 8 to 9 percent annually 2.3 Domestic Demand The industry has
enormous growth potential. Factors listed below determine the rising demand for
pharmaceuticals. The growing population of over of a billion Increasing income
Demand for quality healthcare service Changing lifestyle has led to change in disease
patterns, and increased demand for new medicines to combat lifestyle related diseases
More than 85 per cent of the formulations produced in the country are sold in the domestic
market. India is largely self-sufficient in case of formulations. Some lifesaving, new
generation under- patent formulations continue to be imported, especially by MNCs, which
then market them in India. Overall, the size of the domestic formulations market is around
Rs160 billion and it is growing at 9 per cent per annum. 2.4 Future Prospects The Indian
pharmaceuticals market is expected to reach US$ 55 billion in 2020 from US$ 12.6 billion in
2009. This was stated in a report title "India Pharma 2020: Propelling access and
acceptance, realizing true potential" by McKinsey & Company. In the same report, it was
also mentioned that in an aggressive growth scenario, the pharmaceuticals market has the
further potential to reach US$ 70 billion by 2020 Due to increase in the population of high
income group, there is every likelihood that they will open a potential US$ 8 billion market
for multinational companies selling costly drugs by 2015. This was estimated in a report by
Ernst & Young. The domestic Pharma market is estimated to touch US$ 20 billion by 2015.
The healthcare market in India to reach US$ 31.59 billion by 2020. The sale of all types of
pharmaceutical drugs and medicines in the country stands at US$ 9.61 billion, which is
expected to reach around US$ 19.22 billion by 2012. Thus India would really become a
lucrative destination for clinical trials for global giants. 2.5 Market Share Of Different
Pharmaceutical Product Categories Category Market share (%) Value growth (%) Volume
growth (%) Anti infective 17 4 11 Gastrointestinal 11 8 9 Cardiac 10 18 15 Respiratory 10 9
6 Vitamins/minerals 10 5 5 Pain/analgesic 10 8 9 Dermatological 5 8 4 Gynaecology 5 3 -1
Neuro psychiatry 5 10 6 Antidiabetics 4 11 16 Opthologicals 2 18 16 others

Major Players In The Pharmaceuticals Industry

1. Ranbaxy Laboratories Ltd.
2. Dr. Reddys Laboratories
3. Nicholas Piramalindia Ltd
4. Cipla Ltd
5. Biocon Ltd
6. Aurobindo Pharma Ltd.
7. Glaxosmithkline Pharmaceuticals Ltd.
8. Cadila Healthcare Ltd. (Zydus)
9. Sun Pharmaceuticals Industries Ltd.
10. Wockhardt Ltd.
11. Dihman pharmaceuticals Ltd
12. Elder pharmaceuticals Ltd
13. JB pharmaceuticals Ltd
14. Merck pharmaceuticals Ltd
15. Matrix laboratories Ltd

Strengths Of Indian Pharmaceutical Industries

Competent workforce India has a pool of personnel with high managerial and
technical competence as skilled workforce. It has the largest English speaking
population in the world. Professional services are easily available.

Cost-effective Chemical Synthesis Its track record of development, particularly in the

area of improved cost beneficial chemical synthesis for various drug molecules is
excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk

Information & Technology It has a good network of world-class educational

institutions and established strengths in Information Technology.

Globalization The country is committed to a free market economy and globalization.

It has a 70 million middle class market, which is continuously growing

Consolidation The international pharmaceutical industry is finding great

opportunities in India as the process of consolidation has started taking place in

Low priced products The industry has thrived so far on reverse engineering skills
exploiting the lack of process patent in the country. This has resulted in the Indian
pharmaceutical players offering their products at some of the lowest prices in the

Quality assurance The quality of the products is reflected in the fact that India has
the highest number of manufacturing plants approved by US FDA (61 plants), which
is next only to that in the US.

Dominance in the market Multinational companies have traditionally dominated the

industry, which is another trend seeing a reversal. Currently, it is the Indian
companies which are dominating the marketplace with the local players dominating
a number of key therapeutic segments.

Self-reliance Displayed by the production of 70 per cent of bulk drugs and almost the
entire requirement of formulations within the country.

Labor force With one of the largest and most genetically diverse populations in any
single country, India can recruit for clinical trials more quickly and perform them
more cheaply than countries in the West.

Other Strengths Low cost of production, Low R&D costs, Innovative Scientific
manpower and Increasing balance of trade in Pharma sector are also significant
strengths of the Indian pharmaceutical industry.

Challenges Of Indian Pharmaceutical Industry

Underdeveloped new molecule discovery program The main weakness of the industry is an
underdeveloped new molecule discovery program. Even after the increased investment,
market leaders such as Ranbaxy and Dr.Reddys Laboratories spent only 5-10 per cent of
their revenues on R&D, lagging behind Western pharmaceuticals like Pfizer, whose research
budget last year was greater than the combined revenues of the entire Indian
pharmaceutical industry. This disparity is too great to be explained by cost diffentials, and it
comes when advances in genomics have made research equipment more expensive than

Hue & cry against exploitation In clinical testing persons from developing countries will be
used to generate data about possible effects of a drug. A feeling of unrest among them or
some section of society might develop that we are being used as guinea pigs. It might lead
to demonstrations or legislations which will hamper the growth of industry.

IP leakage IP leakage is one of the major concerns by companies outsourcing research work
to India. So any major incident of IP leakage by Indian company can taint the image of whole

Restricted items There are a lot of items that are restricted under the EXIM policy from free
trading. These restrictions are a weakness for the industry and hence pose to be a threat for
its development.

Safety concerns With recent high profile product withdrawals, there are also concerns that
regulatory agencies will tighten up safety and efficacy testing requirements. A particular

focus will be on the application of pharmacogenomics techniques to improve safety profile,

but the advent of such techniques in the long run will improve industry productivity as more
pharmacogenomics data is collated.


About The Company Kerala State Drugs & Pharmaceuticals Ltd., a Public Sector Undertaking,
since its inception in 1974 has been manufacturing and supplying essential and lifesaving
medicines to cater the need of the common patients resorting to Hospitals in the State of
Kerala. It is situated in Kalavoor, Alappuzha district. The KSDP Ltd. was incorporated as a
company on1971 under the companies act,1956 with the main object of meeting the entire
demands of drugs and formulation of the State Health Service Department. KSDP Ltd. is a
subsidiary of M/S Kerala State Industrial Enterprises Ltd ( KSIE Ltd),Trivandrum. The factory
was inaugurated in 12th September, 1974 and started its commercial production,
manufacturing and supplying of essential and lifesaving drugs to health service department
of the government of Kerala from 1978 onwards. It was started as a kitchen to supplying
medicines to various government institutions coming under Government of Kerala. The
complete shares of the company are taken by the Government. The liability of the members
is limited. The slogan of the company is quality that cures and the company produces
medicines that cures rather than treats. The Company has reached glorious heights in its
way to thrive in this Hi-Tech era. The Product Development wing of the Company has made
all efforts to bring out scores of new products in addition to the existing multiplicity of drug
formulations to the tune of hundred odd products. The development work of new
generation drugs are in progress. Without any compromise in Quality, KSDP LTD. is shielding
itself from the globalization threats and venturing in to commercial trade operations. Now
the Company is a major supplier of Quality drugs to Kerala State Medical Service
Corporation (KMSCL), Thiruvananthapuram. When multinational companies and other
companies in the private sector were supplying medicines at exorbitant prices and reaping
high profits, the entity of Government Company in the pharmaceuticals sector became
absolutely necessary and hence the honorable minister for industries Sri T.V Thomas
decided to set up the plant in an industrially backward district alleppey. The watch word of
KSDP is May all be free from diseases. KSDP has two units.
1. Formulation division

2. Vitamin division (Now formulation division is only working)

1. Formulation division :
The formulation division has different department such as Marketing, Production Purchase,
Store, Production Planning, Personnel, Finance, Maintenance and research & development.
KSDP started with this formulation division and as far as KSDP is concerned the formulation
is very important and now this division is only working. Mainly the company is producing
different types of tablets, capsules and powders.

2. Vitamin:
a division KSDP started producing vitamin A in the year of 1983 and seized in the year
2004.The company stopped the production of Vitamin A due to heavy loss. The loss of the
plant was due to high cost of production and unavailability of raw materials like lemon grass

Vision and Mission

To manufacturing and market quality drugs at economical rates to the common man and
to extend social justice to suit the needs of the common man, moreover to formulate new
products through research and development

To undertake manufacture and trading of drugs, pharmaceuticals, Radio Pharmaceuticals,
Nutriments, Cosmetics and Hospitals equipment
To provide financial, technical, marketing development or any other assistance and
guidance to any establishment, undertaking or any description what so ever which is likely
to facilitate or accelerate the development of industries relating to Drugs, Pharmaceuticals,
Radio- Pharmaceuticals, Nutriments, Cosmetics and Hospital equipment.
To promote, establish and operate sales offices such as Emporia, showrooms. Publicity
offices, Stalls and Centers with the object of improving the marketability of Drugs,
Pharmaceuticals Radio Pharmaceuticals, Nutrients, Cosmetics and Hospitals equipment.

Being a pharmaceutical industry, the KSDP has a well maintained animal house to perform
toxicity and pyrogen tests on chosen healthy animals. KSDP is very particular about the
quality of the raw materials even if the price is high. As per drugs and cosmetic act and
rules, the company has to maintain raw materials and finished products. The company is
very particular in maintaining each and every aspect.

Costly instruments are used for separate tests for each and every batch. The instruments
like ultra violet spectrometer, infrared spectrometer, G C spectrometer and HPCC
spectrometer. These instruments cost nearly Rs 10 lakhs. The company has a highly
dedicated workforce and professional supervision.
The Marketing is mainly under the heading of formulation division. 95 % of the production
of formulation division is given to the department of health, government of Kerala. Balance
portion i.e. nearly 5 % is sold to other state and central government hospitals.


1. Amoxicillin Capsules I.P
2. Ampicillin Capsules I.P
3. Cloxacillin Capsules I.P
1. Paracetamol Tablets I.P.
2. Cotrimoxazole Tablets I.P
3. Salbutamol Tablets I.P.
4. Citrizine Tablets I.P.
5. Metronidazole Tablets I.P
6. Glibenclamide Tablets I.P
7. Ciprofloxacin Tablets I..P.
8. Erythromycine Stearate Tablets I.P
9. Metochlopromide Tablets I.P.
10. Folic Acid Tablets I.P
11. Acetylsalycylic Acid Tablets I.P
12. Chlorpheneramine Maleate Tablet I.P.
13. Diethyl Carbamazine Citrate Tablets I.P
14. Amitriptyllin Tablets I.P
15. Alprozolam Tablets I.P

16. Frusemide Tablets I.P.

17. Haloperidol Tablets I.P
18. Vitamin - B Compound Tablets I.P. Strong
19. Aluminium Hydroxide Tablets I.P
20. Norfloxacin Tablets I.P.
21. Phenobarbitone Tablets I.P
22. Diazepam Tablets I.P.



























Production department is considered to be the most important and largest department in

the organization. The authority of this department is within the hands of production
manager. The workers are working sincerely and best of their skills. There are permanent
workers, contract workers and trainees in this department. The production department is
operating under the directions of marketing and sales divisions, quality control
departments, stores and inventory control. The total quantity to manufacture and the
denomination of packing is obtained by production planning department and fed to the
manufacturing wing .The quality department makes constant watch over the blending
standards, packing safety and product hygiene. The inventory control department and
packing section takes over the finished products in the predetermined areas. The
production department consists of different sections such as tablets, capsules, powders and
liquid preparation.

Production Of Tablets Steps involved in the production of tablets are

1. Mixing
2. Drying
3. Powdering
4. Lubrication
5. Compression
6. Coating


In mixing process, necessary ingredients as per the formula required for the formulation of
each tablets are mixed together to obtain a wet mass, using a mixer machine. There will be
an active ingredient for each tablet. The ingredients within the formula in addition to the
active are called excipients. Excipients are needed to make a good quality tablet at the
required tablet press speed. They help the flow, compressibility and the ability of the tablet
to eject from the tablet press without falling apart. Excipients also enhance the hardness,
disintegration, appearance, color, taste, and the overall performance of the tablet. It takes
almost 20 minutes for mixing each batch. The common additives or excipients are
Disintegrating agents
Colours Page


The wet mass obtained after the mixing process should be dried using hot air. There are two
types of dryers like

Fluid bed dryer

Tray dryer. In fluid bed dryer the wet mass is collected in a machine as bulk and steam is
passed through it. Steam is obtained by heating water using electricity. In the case of tray
dryer the wet mass is collected in different trays and is dried by placing these trays in a
closed container. Hot air is passed through this container to dry the wet mass. In the drying
step the wet mass is dried to a predetermined end point, commonly measured with a test
called the LOD or loss on drying test.


The dried mix consists of lumps. This mix of lumps is powdered in order to
To improve powder flow.
To improve compressibility
To reduce fines.
To control the tendency of powders to segregate
To control density
To capture and fuse small quantities of active material The dried mix consisting of lumps is
powdered with the help of a powdering mill and its passed through a sieve to get fine
particles of uniform size. The resultant form is subjected to sieving to extract fine powdered
materials. Milling equipment is used to improve flow, reduce segregation, enhance drying,
and limit wide particle size distribution. There are four standardized tests which are
commonly performed on either milled or finished granules:

LOD- water content

Bulk Density, mg/ml

Particle Size Distribution

Angle of Repose, flow gradient. Two of the four tests, Loss on Drying (LOD) and Particle Size
Distribution, are commonly performed by operators on the production floor. In some cases,
the operator only performs the LOD and the other three tests are performed in the
laboratory. The practice varies depending on the situation. MILL APPLICATION: Generally we
want to be as gentle with powders as possible. Some powders have high moisture content
and they may be subject to compaction within the mill; others are very hard and friable and
are subject to producing fines. Fines are powders that are very small and dusty, which
will pass through a 200 mesh screen. Fine dusty particles impede the flow, do not compress
well and can become air born. The air born dust can be witnessed on filters, walls, cabinets
and machine components. Besides affecting yields, the dust will combine with oil and grease
on the tablet press causing the punches to become tight, requiring more frequent cleaning


The fine granules which obtained after powdering is lubricated using lubricating agents like
talc, magnesium stearate, dried starch etc. Lubrication is carried out in a machine called
Drum Mixer. It is mainly done to avoid the sticking of the mixture in the machines.


Here the mixture is compressed in a compression machine to form tablets of desired shapes
and sizes. The powder is compressed with the help of punches and dyes which can be
attached to the compression machine. The size of the punches and dyes varies according to
the size of the tablets. The lower and upper punch is pressed to compress the tablets. After
compression, the tablets will be
released by moving the punches apart. Here double rotary compression machine is used to
make 54 tablets [27*2] in one rotation. In this step itself the tablets are turned into finished
form with the engravings punched on it. The main steps involved in compression are

Filling the die:

first step involved in compression is filling the die with the powdered mixture. To adjust the
weight of tablet, volume of filling the power in the die should be adjusted. The tablet should
be made available in different weights , say 250 grams, 500 grams etc. Based on this the die
should be filled.

Compress the tablet:

With the help of upper punch and lower punch the powder is compressed to form the
tablet. When it is compressed all air inside the die and between the powder is removed. As
binders are added with the mixture the powdered mixture stick to one another and thus
tablets are formed in the shape of the dies used.

Eject the tablet:

The tablet is pushed from the die. When setting up the tablet press; Adjust Tablet Weight,
Adjust Thickness, Balance weight & thickness and machine speed, to get proper Hardness.


Once a good tablet is made, we often need to add a coating. The coating can serve many
purposes; it makes the tablet stronger and tougher, improves taste, adds color, and makes
the tablet easy to handle and package. There are two types of coating

Sugar coating
Thin film coating Sugar coating is used to avoid the bitterness of some tablets. Coating is
sprayed as a solution using a spray gun. Water based solution is used for coating. This
presents a challenge in applying and quickly removing this water based solution so it does
not disrupt the integrity of the tablet. Tablet film coating equipment has evolved to enhance
drying capability. Essentially a tablet coating system is much like fancy clothes dryer. The
water based solution is sprayed in a very fine mist so as to dry almost immediately as it
reaches the tablets. As the water dries it leaves the solids as a thin film on each tablet

The coating system continuously supplies hot air, at the same time pulling air through small
holes in the coating drum. The drum is commonly referred to as the coating pan, with small
holes called perforations. This process can take as little a 30 minutes or it can take several
hours. Tablets must be tough enough to tumble while the solution is added. The solution is
distributed from tablet to tablet during the tumbling and drying process. The spraying,
distribution and drying all takes place at the same time. Coating system consists of the
coating pan, spraying system, air handling unit, dust collector and controls.
The coating pan is really a drum within a cabinet, allowing for control of air flow, air
temperature and controlled solution application.
The spraying system consists of spraying guns, a solution pump, tank & mixer and air lines.
The solution is pumped into the guns and the air combines with the solution for atomization
into a very fine mist.
The air handling unit (AHU) is basically a way of heating and filtering the air.
Dehumidification and/or humidification maybe needed depending on your location and
application requirements.
The Dust Collector collects the dust during the pre heat and tumbling cycles and the
Controls connect all of the components creating a complete coating system.
Once the production of one batch is finished in its respective section, then they will give
intimation to packing section. The labels on the packs are printed by both hand printing and
machine printing. Once the packing is completed it will be transferred to stock. It will be
accounted to stock register only after getting approval from the quality control department.
Different colours of packing are used for different products to identify the products.


The main aim of this department is to supply the products of the company to common man
at economic rates. The two ways of marketing are

1. Government sale
2. Open market sale

Government Sales The company enjoys preference in the purchase from the government of
Kerala. The company supplies medicines to institutions coming under health and family
welfare, community health centers of government of Kerala like primary health center,
medical college hospitals, taluk and district hospitals. 60% of demand of health department
of Kerala is satisfied by KSDP.
KMSCL (Kerala medical service corporation)is authorized to collect and distribute medicines
to all the government institutions under health department. The Major Institutions under
health department are
1. Institution under director of health service (DHS)
2. Institution under director of medical education (DME)

Institutions coming under DHS are government institutions like Panchayat, consumer fed,
hospital under local bodies, cooperative hospitals , district hospitals, taluk hospitals, primary
health centers etc. Under the DME come all the government medical colleges of Kerala.
Open Market Sales KSDP started open market sales in 1978 initially in Kerala and later on
expanded to other states like Tamilnadu, Andhra Pradesh by employing medical
representatives in each state and appointing medical officers. At that time there was a
separate medical division located in cochin in Kerala, Chennai in Tamilnadu, Hyderabad in
Andhra Pradesh and Great kailash in Delhi.
23 products were marketed in various dosage forms. It gradually ceased in 1998 since KSDP
does not have the sufficient infrastructure for the prescription drug market. Open market
sales involves

1. Institutional sale
2. Prescription sale

In institutional sales, list of products, rate of each product, details about the quality of
products and a covering letter is send to various medical institutions. If they are satisfied
with the rate and quality of the product, they give purchase order to the company and the
product is distributed. The company now is not going for prescribed sales.
The price of product is determined by the price fixing committee which consists of top
officials of the company. The rate of the medicines in the open market sales will be 5 to 30
% increased rate than for the government sales.
The company is not permitted to sell the medicines at same price to open market and
government. Branding During 1984,the company had branded products such as supremol
tab for co-trimoxazole, Brodilan tab for saltbutamol 2mg +Theophylline 100
mg,kaymox250& 500 mg for Amoxicillin trihydrate,Maxillin 250 mg & 500 mg for Ampicillin
trihydrate,Symix 100ml for cough syrup. At present,the company distributes its medicine
under trade name as there is only less open market sales in function. Eg:Paracentamol
Advertisements And Promotion As the company is not concentrating in open market sales,
there is no advertisement and promotional Efforts.


The Personnel Office deals with recruitment. Wage administration, promotion and industrial
relations, disciplinary actions etc. The employees are appointed through Pecan employment
exchanges. The additional employees required are taken as apprentice or on contract basis.
Selected persons could get 6 months training efficiency in concerned on the supreme quality
while selecting managerial staffs. Presently there are145 permanent employees including
the managers and engineers. Out of which 131employees are presently working and the
rest 14 are on deputation and on long leave. The temporary posts consist of more than 100
apprentices and contract based workers. Contract based workers consist of former
employees who took VRS from the company and external persons who are expert in this
field. The peoples recruited could get training and also various seminars and classes are

To recruit right kind of persons for the right job at the right time.

To arrange for training programmers.

To evaluate performance of the employees.

To the handle the grievances of the employees.

To provide welfare facilities to the employees.

Provide and maintain safety measures.

Formulating policies
Statutory Labor Welfare Facilities provided (Personnel Office) in KSDP

Canteen Facility

The Company provided a canteen for its members. Here foods are provided at a rate of Rs 8
per day for permanent employees. Working time of canteen is 8 hours.

Rest Rooms & Lunch Rooms

Adequate suitable rest rooms and lunch rooms (with provisions for drinking water) where
workers can eat their meals brought by them are provided

Facilities for Sitting

Company offers very good sitting facilities for employees in their working spot

Medical Facility
The company arranges medical checkups for all employees once in a year. Health data cards
are then issued to all the employees. The medical facilities are provided to employees as
well as his/her family members.

Risk Allowance
When an employee meets with an accident, during employment for the disablement
compensation is paid as per the rules of the Workmen Compensation Act. In addition to the
KSDP allows an excreta payment of loss of wages i.e., 50% of the (basis DA) due to such

Drinking Water Facility

An effective arrangement of drinking water for the workers in each section or department is
available. Also arrangements are made for cold drinking water.

Recreational Facility

Recreational club is organized in the company premises and Rs 10/- per month are revised
from each employees.
A well functioned time keeping system is used by KSDP Ltd for proper time keeping. For this
purpose an electronic punching system is maintained by the Time Office.

Statutory Labor Welfare Facilities Provided (Time Office) in KSDP

Working Hour
a) First Shift6.30 am to 2.30 pm
b) Second shift2.30 pm to 10.30 pm
c) Third Shift10.30 pm to 6.30 am
d) General Shift8.30 am to 5 pm

Overtime Allowance
Overtime will be paid at double the normal wages. (Basic + DA) to all the eligible staff and
workers for those who are engaged in overtime

Leave Facilities
a)Casual Leave-15 days in a year b)Earned Leave-30 days in a year c)Medical Leave-7 days
Conveyance Allowance
Officers who have put in a minimum of 15 days attendance in a month will be eligible for
getting an conveyance allowance amount of Rs 400/-

First aid Appliances

First aid boxes or cupboards equipped with the prescribed contents is provided and
maintained in KSDP. This is readily accessible during all working hours.

Establishment Section
All the wages, salary, administration and labor welfare facilities are controlled by
establishment section in KSDP.
Statutory Labor Welfare Facilities Provided (Establishment Section) in KSDP

Wages and Salaries

To provide wages and salaries to the employees

The payment of gratuity act 1972 has been amended by the payment of gratuity
(amendment) act 1987. This came into force from 01-10-1987. Maximum salary taken will
be Rs 3500 for gratuity calculation. In the amendment act of 1987, the maximum amount of
gratuity payable to the employees will be Rs 3.5 lakhs. It is given for good faithful service
and efficiently rendered to whole time employees of the company.

The employee of the KSDP covered by the ESI Act and contribution is deducted from the
employees salary since 01-11-1992. Employees whose salary does not exceedRs10000/per month are covered under this act. When employees are registered with ESI, they are
entitled to get the following benefits from ESI:-

Sickness Benefit
7 days full pay or 14 days half pay sick leave can be availed by the employees at any time. If
more than 30 days leave is required, medical certificate from an authorized medical
attendant should be produced.

Disablement Benefit

An injured person is given free medical treatment and all the expenses incurred by him. The
total expense in connection with the treatment will be reimbursed.

Dependent Benefit
Legal heirs of the employee get the dependent benefit after his death. Main dependent are
job and compensation.

Maternity Benefit
Women employees shall be allowed maternity leave with full pay for 90 days after the date
of confinement. In addition, one month leave with wages is also allowed to the employee
who suffers diseases arising out of delivery.

Funeral Benefit
For the funeral of employees, the funeral benefit provided is Rs 1000/-

Provident Fund
According to employees Provident Fund Act 1952, the employees of the company are
entitled to contribute a certain percentage of salary or wages to this fund. The rules
followed in KSDP are known as Employees Provident- Fund Rules. The fund shall deem to
have been established on and from 16th
February 1956. A worker is eligible to get Piffle he had completed continuous six months of
regular service or 120 days during the period of 12 months. Under this scheme, repayable
loans are available to employees in liberal terms. As the scheme is recognized, employees
get benefit in income tax also.


Bonus is paid in accordance with the guidelines issued by the government from time to
time. An employee whose salary is less than Rs 2500/- per month is eligible to get bonus.
8.33% of the total salary is the minimum bonus to be paid.

House Rent Allowance

House rent allowances are allowed at the following rates.

A) Salary less than Rs 2500/- is eligible to get HRA = RS 145/-

B) Salary less than Rs 3000/- is eligible to get HRA = RS 165/-

C) Salary above Rs 3000/- is eligible to get HRA = RS 185/-Uniform Allowance

Uniform allowance
Provided to workers is Rs 525/-, once in 2 years.

Footwear Allowance
Footwear allowance is provided to the workers in the spot welding shop, paint shop,
mechanical maintenance shop etc. is Rs 425/- in every 2 years

Finance refers to money or funds available to a firm. A business needs at every step
to start a business, to operate it and to expand or modernize its operations. Finance
is required to bring a business into existence, to keep it alive and to see it growing.
The management of finance is essential for the success of the business. Finance
manager is the head of the finance department. He looks after the budget, finance
posting and audits of accounts. The senior officer accounts takes charge to look into
the day today affairs of the financial of the company. The senior officer
establishment deals with calculating employees wages provide provident fund, ESI
etc. The cost section prepares cost sheet and evaluate job card. There is an internal
audit section that deals with verification of accounts.
The United Electrical Industries Ltd has an initial capital amount
t o 4 c r o r e s . I t s products are sold to its main customer KSEB. It also has other
domestic customers.

KSDP Ltd has to pay the following taxes:-

Income tax.
Sales tax.
Excise duty.
Educational cess.

The sales tax charged per meter in Kerala is at the rate of 12.5%, whereas, if sold to
other states outside Kerala, the rate is only 4% per meter (i.e., Central Sales tax).
Educational cess is 2% on the excise duty. Presently, the excise duty is 16% on one
meter and the educational cess 2% of the 16%.

Job Card:

It is used to calculate the quality of products individual production time. The

important registers maintained by the finance are given below:

Purpose Journal.
Sales Journal.

Sections of Finance Departments:

The various sections under finance department are:

Book and Budget.

Priced Stores Ledger.

Book and Budgets:

Collection of accounts from different sections.

Preparation of trial balance and final accounts.

Coordination with auditors.

Helps statutory auditor.

Invoice generation.



Debtors ledger.

Price Store Ledger:

This section is responsible for maintaining accounts for the stores in monitory items.

Each product is having a separate section. It sets the cost of that which issued by
commercial group to add profit margin to set the price.

This section is responsible for cash disbursements and payment. It handles all the
payment said to the employees.

Medical reimbursement

Provident Fund


Loans and advances etc.

Bills payable:
This section handles the payment to be made to the suppliers once the SRV (Store
Receipt Vouchers), PO (Purchase order) and invoice are received, cross verification of
the PO terms, quality and quantity assurance with the SRV and invoice. Once all the
claims are found satisfactory, the payment is issued as per the terms.

Other Important Functions

Payment to establishment


Payment to suppliers
Indigenous Purchase

Important Purchase (Purchase, Bills)

Terms of payment for purchase are

Letter of credit (L/C)

Advance (DD)

Cash and delivery (COD)

Site Draft (SD) (If suppliers are not familiar)

Service Bills
This section maintain bills for payment of

Factory service

Maintance (Civil and mechanical)

Internal Audit
The main function of internal audit are

Fault recognition

Suggestion for improvement

Assisting working level people

Internal audit conducts site audit, once in a year.

This department deals with the purchase of raw materials from various sources. In Elite, raw
materials are purchased through inviting tenders from suppliers 100% of raw materials are
purchased from outside suppliers. Production department gives order to the purchase
department to purchase raw materials.
Purchase Policy:
KSDP Ltd has a purchase policy to purchase raw materials in right quantity and quality aright
time, at right place from a right source. The source of materials is selected by checking the
samples collected from different suppliers. Acceptance of sample can be done as per the
recommendations from the quality assurance department. If the samples are qualified, the
criteria the suppliers can be included in the list of qualified suppliers. Tenders should be sent
to qualified suppliers only. They only have the ability to provide bulk of raw materials of the
company. Raw materials required for the company as follows,

Raw materials.





Capital goods.

Sub assemblies.


Spare parts.

The responsibility of purchasing material rests on the SO purchase. He is responsible for

procurement, components and raw materials.

Purchase procedures:

All the purchase shall be made by purchase department.

Bill of materials shall be given by the production department.

Material intends in forward to purchase department against each projects.

Other items except capital goods required by various departments are intimated to store
who prepares purchase intend and forward the same to giving full specification, samples of
necessary requirement of capital goods is identified in various departments and set to
purchase department often getting approval from the competent authority.


This department is concerned with checking the quality of products made in the company.
At each and every stage of production, the quality of the product is checked. Before it
becomes the final product, it is cross checked.

Quality Policy:

KSDP and its employees are committed to develop, manufacture and market house service
energy meters and motor control gears, ensuring customer satisfaction of its products and
services through continual improvement of the effectiveness of its OMS achieved by setting
and reviewing objectives.

Quality Objectives:

Top management of KSDP establishes implements and communicates operational

measureable quality objectives at all relevant functional levels. The achievement of the
same is measured monthly through MPRM.

Quality Management Principles:

KSDP has framed its quality policy and manages its quality policy manage its quality system
following the eight management principles of ISO: 9000:2000, listed below.
1) Customer Focus:
KSDP meets customer requirements and strives continuously to meet customer expectation
by determining and reviewing customer requirements and measuring customer satisfaction.
2) Leadership:
Top management of KSDP establishes and provides leadership and unity of purpose and
direction through management review meetings and provision of resources.
3) Involvement of People:

KSDP believes that involvement of all employees is essential for the better functioning of
the organization. This is achieved by planned training as given in the guidelines for training.
4) Process Approach:
The departmental guidelines of major functions follow a process approach and include
PDCA cycle, which provides proper direction for achieving results when resources are
managed as a process. It also helps to provide direction in taking planned corrective actions.
5) Continual Improvement:
Continual improvement of QMS is achieved through measurement of quality objectives
achieved, measurement of customer satisfaction.
6) Factual Approach in Decision Making:
KSDP takes effective decisions based on results of analysis of data. This is achieved through
the interactions in the management meeting on the performance of individual departments.
7) Mutually Beneficial Supplier Relationship:
KSDP tries to maintain beneficial and a mutual relationship with supplier.

Quality Assurance

The SE Quality Assurance is in charge of quality checking of the raw material samples. The
quality assurance department also checks quality of incoming raw materials and the
products in process. Inspections of finished goods are done by AE inspection. All meter
products in the company are handed over to sales department. The sales returned meters
are checked and corrected heres a commitment toward Total Quality Management in line
with CII/EFQM guidelines, annual improvement action plans are being implemented
involving techniques like


Business Process Re-Engineering.

Six sigma.


These are resulting in cycle time reduction for further improvements in delivery and
technological process up-gradation, leading to improvement in quality profit to products
and enhanced customer focus on a continuous basis.
To fulfill its role as a corporate citizen towards protection and conservation of the
environment and ensuring that its products and systems also meet such requirements, KSDP
has finalized a Corporate Environment management Policy for ISO 14002 Certification.
For ISO 9001 certification, the International Audit is done once in six month by the KSDP
personnel independent of their functions and External audit is done by Bureau Verities
Quality International

Management Responsibilities Regarding Quality

Management must define and document its policy objectives and commitment to

Ensure that it is understood and implement at all levels.

Define responsibilities and authorities.

Identify verification and assign to competent personnel with adequate resources.

Appoint management representatives.

Quality System Standards

ISO - International Organization for Standardizations

Series of Standards. ISO 9000:

ISO 90001:2000.

ISO 90001:

Covers management responsibility, contact review, control of design, purchase,

testing storage, etc.

All units of KSDP are ISO: 9001 certified. Certification Agency BVQ1 (by Bureau
VERITAS Quality International).

International audit once in 6 months

ISO: 9000-2000 Version Brief Overview:

Revised standard is compatible with principles of ISO 14000 andTQM. It centers on

results achieved through P-D-C-A (Plan, Do, Check,Act) and processed approach.

Focus on business needs, continue improvement throughmeasurable performance

parameters leading to customer satisfaction.

Mandatory documentation requirements simplified required in 6 of the following areas:

1) Documentation control.
2) Quality records.
3) Internal audit.
4) Control of non-conforming products.
5) Corrective action.
6) Preventive action.

ISO 14000 (environment management system)


Converts Statutory, Regulatory Acts (pollution, chemical treatment, discharge etc.)

2) Energy consideration, resource utilization.

Quality issues faced by KSDP:



Input to output performance.







Foundation etc.



Incomplete suppliers.

Incomplete finish.

Incomplete spares.

Incomplete tools.

Incomplete documents (drawings, test reports/certificate).

Inadequacy (technical information)

Not clear/legible


Quality documentation.

Inadequacy (technical information)

Not clear/legible.



Not in sequence as required by site/customer.






Ease of handling/maintains.



Response time, behavior and attitude of KSDP personnel towards customers

TQM Model: The Ten Essential Steps:

Management readiness.

Customer Supplier partnership.

Environment scanning.

Existing system.

Strategic planning

TQM training.

Disciplined system implementation.

Process enhancement.

Performance evaluation.

Continuous improvement.

SWOT Analysis of a company reflects the effectiveness of the functions of the company in
each and every department. Brainstorming technique was adopted to find the SWOT. It is a
group creativity technique designed to generate a large number of ideas from a group of
employees. Suggestions are evaluated and the analysis is made.

Quality of Products: The products of UEI possess high quality. It is an ISO 9001:2000
certified company. The company offers 15 years warranty for its products. Before getting
approval. The company products pass through different types of tests.

Customer Focus: The Apex Management Team of UEI shall determine, understand and try to
satisfy the needs and expectations of customer with the aim of enhancing customer
satisfaction. The Marketing Department has the primary responsibility and Quality control
has the secondary responsibility and all other departments have the responsibility for
commitments for ensuring customer satisfaction.

Involvement of workers is high: UEI believes that involvement of all employees is essential
for the better functioning of the organization. This is achieved by planned training as given
in the guidelines for training. Top management of UEI establishes and provides leadership
and unity of purpose and direction through Management Review Meetings, Monthly
Performance Review Meetings and provision of resources.

Process Approach: The departmental guidelines of major functions follow a process

approach and include (PDCA- Plan, Do, Check, Act) cycle, which provides proper direction in
taking planned corrective actions.

Continual Improvement: Continual Improvement of Quality Management Systems is

achieved through measurement of quality objectives achieved, measurement of customer
satisfaction, resolution of departmental non-conformances, implementation of corrective
and preventive actions and internal audits. These are reviewed in the management review

Mutually beneficial supplier relationship: UEI tries to maintain beneficial relationship with
suppliers and thereby enhance ability of both to create value. The organization continually
measures the performance of supplier sand gives them feedback and possible help to
improve performance. It also gives them chance to assess the organization on the above
Skillful workforce: UEI shall determine the competency of the personnel performing the
work affecting the Quality Management Systems on the basis of assessment done by
immediate superior. The identified needs shall be consolidated for preparation of the
training plan for satisfying the training needs. A yearly Competence Improvement Plan
covering training, exposure visits, self-learning etc. shall be prepared. As a result the
workforce has expertise in the respective areas.
Good Industrial Relations: The relation with the top management and workers are cordial.
Not a single working day was missed due to labor unrest in the past 30 years.


High employee turnover: With the introduction of VRS, the person shaving experience left
the company. This resulted in the reduction of experience hand in the company.

Inadequate Performance Appraisal: The prevailing system of performance appraisal is

inadequate in the present scenario.

Lack of Motivational Techniques: The Company provides mandatory welfare measures to its
employees. But motivational technique like promotion takes too much time.
Time consuming policy decisions: UEI is a government company. So the decisions related to
policy takes comparatively longer period.
Poor financial stability: For years, the company depended on only one customer and the
customer gained high bargaining power. The government policies also affected the
performance of the company. This lead to financial instability.
Inadequate R&D: Due to poor financial stability, company could not set aside much fund for
R&D purposes. This prevented the company from introducing new products. Because of
this, the competitors which were established after UEI overtook the company in many


New Product Line: The Company will start the repairing of transformers within two months.
The procedures foe availing the order from KSEB has been completed. Within one year The
Company will start production of transformers.

Raising Demand: Production of electricity has become more expensive which demands
careful utilization and accurate measurement. With escalating power demand in Southeast
Asia: most countries in the region are demanding novel electricity meters. Moreover, as
increasingly more electric utilities install meters at their customers (both small power and
large power consumers) site, sales for both single phase and three phase meters are
increasing. Hence, the electricity meters market is witnessing stable growth. This is likely to
further accelerate with the transition of electromechanical maters to electronic/digital
meters in the future.
New Markets: The Company has orders from Andhra Pradesh. Talks are going on with West
Bengal Government for the supply order of Meters. Efforts are progressing to explore
foreign markets for companys products. The company got enquiries from countries like
Nigeria and Srilanka. And talks with Cuban and Venezuelan Ambassadors had been made
with a view of getting orders from those countries. Between these, the company has great
expectations in Venezuela

Competitions: the company is facing tough competitions from the private and public sector
Emerging of modern technology: Due to globalization modern technology were available in
the market. The competitor make s of that.



The major findings are:

Good reputation of the company: Quality products and the government brand name is a
major advantage for the company. It as a wide acceptance among the customers since it
possesses a good customer handling and great quality products.

Well-disciplined staff and employee: The work force is the strength of the company. All the
workers work whole heartedly for the progress of the company even in bad times. There
was no labor conflict in the past 30 years.

Hard working skilled labor force: The labor force is very skilled. The company recruit fresh
technicians and give extensive training to them.

Good management employee relationship: The grievance re addressable system is very

effective in the company. The company believes in the policy Prevention is better than
cure, and it results in a good employee employer relationship.

Effective attendance system: The company follows a punch card system. By which, the
company can find out the total hours an employee spend in the working place.

Harmonious Industrial Relations: The HR department makes sure that every reasonable
need of the employee is met. The company considers employees as their greatest wealth.

Maximum capacity utilization: The company plan their personnel needs very effectively and
recruits the correct number of persons. This ensures the maximum utilization of resources.

Regular feedback system: The feedbacks from the customers are collected in time with a
view to improve the operational efficiency. For this the customers are contacted personally
after a certain period of delivery. The company provides feedback forms to the customers.

Good HR planning: HR planning is excellent. The company calculates the personnel

requirement well in advance and act accordingly. Most of the time their planning is
accurate. This ensures the effective utilization of resources.

Solvency: Solvency of the company is good. It maintains a favorable solvency ratio.


The major suggestions are:

Employee Turnover should be minimized: In the long run, this may seriously affect the
company. So the real reasons behind this should be found out and corrective measures
should be taken

Performance appraisal system should be improved: At present the companys performance

appraisal system is not up to the mark. The companys techniques are little outdated. A 360
degree appraisal system can be introduced.

Improve the motivational techniques: The motivational techniques need a revision on the
grounds of increased employee turnover. The company should make the employees more
loyal to the company. For this timely promotion, incentives and plans like ESOP (Employee
Stock Option Program) may be introduced.

More marketing efforts should be made: The new technologies in the information
technology can be utilized for that. The website of the company should be converted into an
E-commerce portal. All the companys products should be listed with pictures and all the
specifications and facilities for online trade should be made.
Infrastructure should be developed for improving the output.
Technology transfer should be established with some reputed organization.

Company should appoint marketing executives.

The privileged opportunity of one month organizational study proved out the nature of
business firm and it had enabled me to have an exposure to the majority of the topics
zational culture etc The significant of financial analysis in determining the performance is
organization was also realized. This organizational study helped me to know about the
company, the various departments; the functioning of various departments etcit also
helped me to know the practical applications of the theories in the business studies. The
organizational study helped to gain knowledge regarding the functional as well as the
managerial aspect of various departments in KSDP. Moreover it helped me to get
familiarized with the real world organizational system and understand the decision making
process in the organization. Organizational study in KSDP helped me to familiarize with a
business organization
To familiarize with the different departments in the Organization and their functioning.
To enable myself to understand how the key business process are carried out in
To relate theory with practice.
To develop my attitude conducive to effective interpersonal relationships.

Books & Journals

Harte John (1997) Management Crisis & Business Revolution,Transaction



Pandey.I.M (2006) Financial Management, New Delhi, VikasPublishing House Pvt

Kotler Philip, Lane Kevin, Jha Abraham and Mithileswar(2007)Marketing

Management- South Asian Perspective, New Delhi, PearsonPrentice Hall.

Sekaran and Uma(2007)Research Methods for Business- A SkillBuilding Approach,

New Delhi, Wiley India.5.Company Journals.

ISO 9001:2000 Quality System Files