CHAPTER ONE

INTRODUCTION

INTRODUCTION
Introduction to the study
The organization study was undertaken in Manjilas Food Tech Pvt Ltd. helps to
observe the functioning of the company, which helps to get a practical and real time feel
of various aspects concerned with the organization and to relate it to the concepts.

Manjilas is a food products manufacturing company. The company produces

various types of rice products, masalas etc. Rice is the main product of the company.
The employees are working together for achieving the organizational goal. The
company has a functional organization structure which helps to determine the
relationship between the different functions and positions, and also helps to determine
the authority and responsibility to carry out defined tasks.
In an organization study each and every department in the organization is
observed and analyzed in detail. They also gave an opportunity to interact with the
employees in the organization.
Scope of the study
The study is focused on the operations of Head Office and Operational
activities of Kottekkad unit of Manjilas Food Tech Pvt Ltd. The activities of the
company in other branches are not within the scope of this study. The structural
aspects, functional aspects0 of all the departments like the Finance, Human Resource,
and Research & Development, Customer care Department, Marketing, Purchase and
Production etc. are covered in this study. However a detailed study on the production
process or the technology being used or a detailed financial analysis is not done.

Objectives of the Study

The major objectives of this organizational study conducted at Manjilas Food Tech
Pvt Ltd. are as follows.
1. To familiarize with the organization and to study various problems faced by
the organization.
2. To understand thoroughly what is the key process in the organization and the
functions and activities of various departments in the organization.
3. Find out the strength, weakness, opportunities, threats of the organization.
Methodology
Information and data collection was mainly done through one to one
interactions with the members of the management team and employees. Both formal
and informal methods have helped in the better understanding of the operations of the
business. The study was done in a systematic manner following a predefined schedule
wherein all departments were covered one by one. Material data from company
website and other websites were also used for this study.

Limitations
The depth and the detail which this study could achieve were primarily limited
by the time constraint. The confidential nature of certain documents, especially the
financial data and the strategically important information has too prevented this study
from achieving the level of perfection it had aimed at initially. The busy schedules of
the head office had made them unavailable for interactions during the study which
could have really made the study more complete and valuable.

CHAPTER TWO

ANALYSIS OF THE BUSINESS

ENVIRONMENT

ANALYSIS OF BUSINESS ENVIRONMENT

Analysis of the Remote External Environment
The life styles and culture of India is changing drastically. The population of
India is increasing every year and this will have a direct impact on the FMCG industry
and its organizations. Although population of India is increasing every year the
population growth rate is decreasing over a period of time.
In 2008 the population growth rate is 1.6%, in 2009 it is 1.5%. In 2010 the
growth rate is 1.3%. Although the figures didn't change drastically, the supply and
demand of the FMCG products will be affected due to change in population structure.
There will be decrease in demand and intense competition as the birth rates and
number of customers decrease. Most importantly it is the change is life style of Indian
customers and social behavior will affect the FMCG industry in India. It will demand
a new products and services over the time and will lead to increase in investment in
R&D of FMCG companies. Now the world is facing with food shortage leading to
increasing invest in food production. If the organizations fail to offer products and
services according to changing lifestyle and behavior then it will be difficult for any
organization to survive in the market.
Economic Factor. Current slowdown in global economic scenario affected
almost every industry across the world. There has been increase in unemployment and
low consumer spending power. This leads to consumers not opting to buy expensive
products or services. This further pressurizes the RMCG companies to reduce the
prices for the products and services.
Organizations will have to review this economic ride and have to respond
accordingly, a successful organization will respond according changing economic
conditions, consumer and stakeholder behaviour. An efficient organization must be
aware of the changing economic condition across the country and global and should
employ a suitable strategy to stay in the market.
Political Factor. Political factors will have a greater influence on the
organization and industry and it is the duty of the organizations to comply with it. It is
necessary for the organizations to comply with the legislations implemented nonconformance of which may lead to serious implications on the organization. The
government has implemented certain restriction in the import policies. However tax

exemptions in sales and excise duty are provided for the small scale industries. This
will allow the SMEs to invest more and will increase the number of new entrants.
Transportation and infrastructure facilities are improving not only in urban but also in
the rural area which will help in distribution network.
Technological Factor. Advancement in technology boost the production with
enhancement in quality of products and services rendered to the customers.
Organizations began to adopt e-business to improve brand communication and
market. Technological advancement makes the supply chain and transactions along
the chain simple. Organizations reduced costs with effective IT technologies and
increased the rate of information transactions. Technology is playing a key and huge
part in the FMCG sector by developing the new packaging, increasing productivity
and longer shelf life of food products.
Better, stronger, more effective and faster are the key elements that all
manufacturers in this sector push for, as it drives sales. The advancement enhances
the sales by enabling the manufactures to produce better products with attractive
packaging and better communication. With advancement in communication
technology and rising social media network it enables the organizations to
communicate better to the customers by improved marketing campaigns.
International trends. The economic crisis and slowdown had greatly affected
the sales FMCG goods across the world. However emerging economies like India,
China and Brazil are not greatly affected and manage to do well to recover quickly. A
common trend that was followed across the world during economic slowdown was
trading down. Because, customers became more cautious looking for less expensive
brands, special offers and discounts. This added tremendous pressure on the market
prices due to severe competition and down trading. However emerging economies
like India, China and Brazil saw development in hypermarkets helping the growth of
FMCG markets in these countries.

Industry Profile
History of the FMCG Industry
FMCG industry, alternatively called as CPG (Consumer Packaged Goods)
industry primarily deals with the production, distribution and marketing of consumer
packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables
which are normally consumed by the consumers at a regular interval. Some of the
prime activities of the FMCG industry are selling, marketing, financing, purchasing,
etc. The industry also engaged in operations, supply chain, production and general
management. Some common FMCG product categories include food and dairy
products, glassware, paper products, pharmaceuticals, consumer electronics, packaged
food products, drinks, household products, etc. Some of the merits of FMCG industry,
which made this industry as a potential one are low operation cost, strong distribution
networks, and presence of renowned FMCG companies. Population growth is another
factor which is responsible behind the success of this industry.
Some of the well-known FMCG companies are Sara Lee, Nestle, Reckitt
Benckiser, Unilever, Procter & Gamble, Coca-Cola, Pepsi etc. FMCG industry creates
a wide range of job opportunities. This industry is a stable, diverse, challenging and
high profile industry providing a wide range of job categories like sales, supply chain,
finance, marketing, operations, purchasing, human resources, product development,
general management.
The following are the main characteristics of FMCGs

Frequent purchase

Low involvement (little or no effort to choose the item- products with strong
brand loyalty are exceptions to this rule)

Low price

High volumes

Low contribution margins

Extensive distribution networks

As it exists today, the domestic food and beverage industry is a very competitive
and mature industry with the little domestic growth. Increases in a companys market
share usually come at the expense of a competitors loss of market share. Over all
more growth comes from international expansion. With the package of NAFTA and
GATT many domestic companies are either entering into alliances with the foreign
entities ,or acquiring them. There are many reasons for this. For example much
domestic food and beverage companies want to take advantage for existing
distribution systems or underutilized plant capacity. Some acquisitions may be
motivated by Federal income tax considerations.
From the time that agriculture began about 7000 years ago to the present there
have been many important developments that are responsible for the state of the
industry as it is today, the followings events that have had a major impact on where
the industry is today.
Irrigation. The use of some form of irrigation is well documented throughout the
history of civilization. It has enabled food production to occur in areas previously too
hostile for plants and to counter the effects of drought.
Industrial Revolution. Resulted in mass production of food products at lower cost

and consistent characteristics.

Food Preservatives. Classified into two main groups, antioxidants that delay or
prevent the deterioration of foods by oxidative materials and antimicrobial agents that
inhibit the growth of spoilage and pathogenic microorganisms in food.
Packaging. Tinned products came to America in 1822 and allowed food to be
stored for long periods of time. Some packaging processes were developed to enable
Napoleons armies to carry war to distant areas and remain well fed.
Pasteurization. A partial sterilization accomplished by raising milk to a
temperature high enough to destroy pathogenic bacteria. This process allows milk to
remain consumable for about 14 days if refrigerated in closed containers.
Pesticides. Enabled farmers to significantly increase yield.
Franchising. In the 1950s and 1960s, the concept of franchised restaurants was
promoted. This enabled franchisers to expand with limited capital investment.

Transportation. First, railroads and barges, then trucks and air transportation
have enabled many food products to be enjoyed in regions where food cannot be
grown. Many locally grown food products can be consumed globally (bananas, fish,
fruit, etc.).
Nutrition. In the 1950s and forward, nutrition became a major concern for
production/consumption. The emphasis on eating healthy has spawned a new market
segment; for example organic foods, low-fat foods and healthy foods all enjoy healthy
margins and increased demand.
All of the above mentioned technological developments have played a major
role in the evolution of the food and beverage industry. There have also been some
business developments that have had an impact on the current state of the industry.
Future Market. Many food manufacturers participate in the futures markets
by entering into futures contracts to hedge against price fluctuations for their
inventories of raw materials.
Government Agencies. OSHA and the FDA, have had a dramatic effect on
the meat and food processing plants. They have helped ensure safety in production
and consumption.
Product Branding. Branding of products is accomplished by extensive
advertising, in many instances this product advertising costs more than the cost of
production. Branding is partially responsible for the emergence of radio and television
(soap operas).
Mergers and Acquisitions. In the 1980s there were many mergers and
acquisitions of food and beverage companies. This trend continues today. Many
companies are actively buying and selling brands like baseball teams trade players.
Global Scenario
The recent market statistics reveal that the world economy is recovering.
Moreover, the market researches further reveal that FMCG is the industry that has
braved all odds in the doldrums and maintained a fairly constant position. But the
practical picture is hardly similar to the conceptual vision as the industry is yet to

10

experience enhanced consumer payments and consumer confidence. This is

specifically applicable for the FMCG industry of the developing countries like US
and UK where consumer activities have remained more or less constant without any
improvement. But the scenario of emerging countries like China, Brazil and India
seems optimistic, which feature enhanced sales and more frequent shopping trips that
hint at quantitative and qualitative improvements.
At Market Quotient, we carry out extensive research on a periodic manner in
order to accumulate in-depth knowledge of the activities of competitors and market
intelligence on the current and future trends of the FMCG industry. We prioritize
these triggers as the major pillars of growth. We approach factors like unpredictable
change in consumer trends, intense competition among peers and frequency of
transactions from different angles so that we can improvise our services and adapt
quickly to the evolving changes.
The strength of Market Quotient is the expert panel that comprises of industry
professionals who have spent years in the industry and closely observed the nature of
consumers and changing trends. Thus, they conduct studies and prepare full proof
reports that highlight integral issues like What is the latest trend, What are the
future predictions and how to get through the industry doldrums. They work
closely with the clients to understand their specific demands and crisis and suggest
tailor- made margin management goals which can be boosted by devoted supply chain
research support.
Growth in sales for the worlds top-50 FMCG firms has halved from 5.6% in
2013 to 2.9% in 2014 , as a result of exchange rate volatility, failing commodity costs
and increased competition from local players according to research unveiled today
by OC&C Strategy Consultants in collaboration with The Grocer.
OC&Cs annual Global 50 Index, the only analysis of the financial statements to
find growth at the same pace they have seen in recent years. Particularly in the BRIC
markets, global companies are losing market share to local players. In 2014, the Global
50 lost 0.7% points of their market share of the market in China, 1.3% points in India,
1.4% points in Brazil and 0.4% points in Russia. In contrast the picture on profitability is
more positive gross margins have grown by 0.7% in 2013 compared with 0.1% in

11

2013 and EBIT margins are up by 0.9%, as companies have refocused activities on
rebuilding profitability.
Although the BRICs have been proving more challenging, global FMCG firms
are identifying new areas of growth. 70% of firms in the Global 50 who reported
underperformance in a BRIC country I their annual report, named a MINT country
(Mexico, Indonesia, Nigeria and Turkey) as a key growth market. Early movers to the
MINTS are establishing very high market shares. In Nigeria, for example, Coca-Cola
has built a 41% share of the soft drinks market compared to 26% globally, and Nestle
has built a 69% share of the coffee market versus 22% globally.
FMCG companies are behind the biggest brands in the world. FMCG is all
about names, the products which everyone recognizes from trips to the supermarket or
from ads on television. The brands that make up this sector are the high profile ones,
the ones everybody knows and loves. Thank Coca- Cola, Dettoland Dove. This is an
industry that puts you in living rooms, kitchens and bathrooms across the globe.
The FMCG industry changes fast and is constantly evolving. Its fair to say there is
never a dull moment in FMCG. From the pace at which goods leave the shelves to the
rate of product innovation and career progression, things move quickly. And doesnt
end there. The brands themselves are changing just as quickly.40 percent of brands on
the top 100 list 20 years ago have already been replaced by new names today.
Firms have been sales growth slow considerably; their renewed focus on
rebuilding, profitability is proving successful. Companies have been taking a more
cautious and FMCG firms thrive on employee and customer retention. Employee
investment is a big part of the ethos of the FMCG world. Perhaps its because we
understand the importance of loyalty. Customer loyalty can make or break a brand.
Take Twinnings for example-a century after they entered the top 100 brand list, they
are still there and going strong. So it makes sense for FMCG companies to encourage
the loyalty of their employees too.
FMCG companies can beat the recession. This is an industry that proved itself
very resilient ot recession-with the majority of companies in the sector weathering the
financial storm in a way that very few others have managed. Why? well, consumers
will always need to buy the products created by FMCG companies. They may not buy

12

big items like refrigerators or cars in a recession, but floors still need to be cleaned,
clothes has to be laundered and aches and pains still need to be soothed.
FMCG has a history of delivering what consumers want. Some FMCG
companys roots are over two centuries old driving the industry to a value of $570.1
billion. In short, to quote Sam Walton, founder of wallmart:high expectations are the
key to everything.
All the FMCG focused approach, and as our research shows, more than 80%
of innovation investment in 2014 focused on core products rather than new ventures.
Similarly, firms are increasing the selling of businesses that are of poor fit with their
core operations, and only buying firms that will strengthen their market position in a
key market rather than diversify.
New emerging markets like Mexico, Indonesia, Nigeria and turkey that have
weaker local competition are providing a welcome way of growth opportunities for
the worlds largest FMCG firms. Companies that are struggling to establish a strong
foothold in the BRICS firms need to consider these new markets as opportunities for
expansion and consolidation. In contrast to established western multinationals, local
BRIC firms are enjoying a period of sustained growth. This year has seen the first
Chinese firm-Tingyi, a company specializing in instant noodles and beverages-enter
OC&Cs global 50 index at number 41, with two other Chinese firms, Yili group and
Mengniu, narrowly missing out on a top 50 spot. In addition the four global 50 firms
based in emerging markets-JBS and Brazil Foods in Brazil, Grupo Bimbo in Mexico
and Tongyi in china grew by 14.6% in 2014.
Indian Scenario
We are a daily market share business much like newspaper, milk and airlines.
These industries cannot afford to lose a day. Hence the key is relentless execution.
These were the quotes from a senior leadership who took charge of the top slot of a
leading FMCG very recently. This is just to indicate that the fast moving in the
FMCG is expected to move to daily moving.
As the 2014 came to an end, with the very high inflationary trend the market
sluggish most of us are entering 2015 neutral perspective. With the change most
likely over the political situation most of them would be planning to split the year into

13

2, pre-election and post-election periods. However seeing a distinct action and

varying consumerism quarter-wise.
The Jan-march period would be a start with not much action happening and
would be as volatile and uncertain as last 12-18 months period. Not much spending
expected (but some hiring, yes).also it would be washout for market with lots of preelection activities happening. The April-June period would see good momentum with
new budgets getting executed. The need for manning would come from replacements
and those for new projects. Some leading parent multi-nationals have already
announced additional participation in their equity share at Indian operations or have
announced investment amounts and new projects clearly indicating growth potential
seen in Indian context. July-Sept quarter, with onset of monsoon would witness some
positive change in the environment and thus in recruitments too. The post-election
period would also see some changing equations and new investments. This would
continue through the last quarter Oct-Dec with festive season, new markets, new
products hitting the shelves. All in all there is a positive April-Dec 2015 period for
recruitments t happen.
With young consumer base, 65% of Indian consumer is below 35 years of age, the
GDP poised to be a tad higher over current and with lowering inflation the consumer
would be willing to spend, organizations willing to invest and one clearly see an
affirmative view for new and more managers is being hired too. Fast moving
consumer goods (FMCG) industry in India is one of the fastest developing sectors in
the Indian economy. At present the FMCG industry is worth $13.1 billion and it is the
fourth largest in the Indian economy. These products have very fast turn-around rate,
which is the time from production to the revenue from the sell of the product is very
less. The present economic scenario, time is regarded as money, so FMCG companies
have to be very fast in manufacturing and supplying these goods.
The Fast Moving Consumer Goods (FMCG) industry in India include segments
like cosmetics, toiletries, glassware, batteries, bulbs, pharmaceuticals, packaged food
products, white goods, house care products, plastic goods, consumer non-durables, etc.
the FMCG market is highly concentrated in the urban areas as the rise in the income in
the middle income group is one of the major factors in the Indian FMCG market.

14

The penetration in the rural areas in India is not high as yet and the opportunity of
growth in these areas is huge by means of enhanced penetration into the rural market
and conducting awareness programs in these areas. The scopes for the growth of the
FMCG industry are high as the per-capita consumption of the FMCG products in
India is low in comparison to the other developed countries. The manufacturing of the
FMCG goods is concentrated in the western and southern belt of the country. There
are other pockets of FMCG manufacturing hubs.
Overall increasing affluence and aspirations in the customers have fuelled FMCG sector
in India is likely to grow in rapid pace over the years. A rapid urbanization, increasing
demands, double digit increase in sales, profits galloping and well under check on cost in
the FMCG sector has presented a picture of growth in the recent days. As per the
emerging market scenario and overall macro-economic expectations the Reserve Bank of
India (RBI) is expected to go for a reduction in interest rates to boost the sagging
economy, improve demand momentum and investment climate. Market also expects RBI
to reduce the cash-reserve ratio (CRR) and the report in the forth coming monetary policy
review and FMCG will turn out to be the biggest beneficiary of the same.
There is ample scope for all the FMCG companies as the per capita consumption of
almost all products in the country is amongst the lowest in the world and the demand or
prospect could be increased further if these companies can change the consumers
mindset, and offer new generation products. Traditionally Indian consumers where using
non-branded apparel but today cloths of different brands are available and the same
consumers are willing to pay more for branded quality clothes. Its the quality, promotion
and innovation of products which can drive FMCG sectors. The sector has sustained a
double digit volume growth in the second quarter despite the slowing global and domestic
economy, the rise in demand had helped the companies to recover the margin drop and
the trend is likely to continue. Product innovation in FMCG sector has picked up pace in
the last few years and will act as a catalyst of growth for the sector in coming days. Also
the implementation of the long delayed GST is likely to benefit the sector as they are
considered as the progressive measures aimed at removing bottle necks, though the
unabated inflation will continue posing hindrance.

15

State Scenario
Sensing Keralas potential as a consumer market, giants in the retail segment have set
up shops across the state. Not to be out done the Kerala SIDCO (small industries
development cooperation limited) to has entered fast moving consumer goods sector,
with a view to making inroads into the retail sector.
Kerala SIDCO has started marketing a select list of FMCG products under its brand
name. The agency has already launched package drinking water and washing soap. It
is said to introduce a range of food products soon.
SIDCO had been marketing its brand of furniture for several years. The products were
made by reputed manufacturers for SIDCO. They agency had been supplying the
products to government officers.
SIDCO has gained confidence to try FMCG products in the market after its successful
stint in the furniture segment. The agency is adopting a strategy akin to that of the
furniture segment for marketing the FMCG products.
The products are manufactured by groups which had been in the business for quite
some time. SIDCO would ensure the quality of the products before dispatching them
to the market, head of the FMCGs wing said. Competitively priced, the products have
being marketed through supply co and consumer fed outlets initially. The new food
products to be launched under the SIDCO brand include high consumption items such
as rice powder and banana powder.
The marketing initiative is being studied by SIDCO and future efforts would be based
on the feedback from the market. The product range would have to be self-sustainable
as the government is not providing any subsidy for the FMG initiative.
The state government has made its stand clear on the retail policy adopted by the
union government. Accordingly, the state will not permit FDI in retail as it is
considered grossly harmful to the interests of the local retailers.
In this current changing business scenario, retail industry has witnessed major
revolution and global attention. Retailing is one of the most rapidly growing and
promising industries in Indian economy. Retailing is an important social institution in
Kerala because about 30 percent of what a customer spends goes on products and

16

services that they buy from retailers. In the midst of stiff and fierce competition and
increased number of retail outlets providing a variety of FMCG products, customers
have become accustomed to patronizing multiple audience. Traditionally, retailers
have relied only on differentiation of products and services to retain their customers
and also to satisfy the customers. However, times have changed, due to fierce
competition from new players entering the market, imitation of new features and
increase in number of new offers, customers have acquired new choices and they have
also become more price sensitive, which has forced marketers to adapt differentiated
and customer oriented strategies in order to enable them to stand out in the
competition and gain a competitive edge. Retailers have recognized this trend and are
of the view that customer satisfaction places a role in the success of retailing business.
Therefore it has become important for FMCG retail stores to try and manage customer
satisfaction. Customer satisfaction occurs when the value and customer services
provided through a retailing experience meet or exceed customer expectations.
Customer satisfaction is considered very important nowadays, it shows how firms are
committed to provide quality product or services to their customers that eventually
increase customer loyalty. Retail business units are now busy in finding out new and
innovative ways to satisfy their customers so that they will stick on the company. The
present study is to assess the level of satisfaction of the customers from the various
services of retailing of FMCGs in Thrissur district.
Industry Analysis
Industry Key Players
The industry key players are nirapara, eastern curry powder, priyam masalas,
kaula.
Nirapara
K K R Group are mainly involved in the manufacturing and exporting of
quality rice, rice products, spices, spice products, etc. The Products are sold under the
brand name "NIRAPARA".
The K.K.R group was set up in 1976 by Mr. K.K. Karnan, a man who set out with the
vision to bring quality rice into the traditional homes of Kerala in South India. A venture
which started out with traditional method of boiling, sun drying and milling, grew into

17

one of the most modern rice processing houses in India with the latest world-class
technology today. KKR Mills boasts of a state of the art plant with the highest
levels of technology in the world, ensuring products that meet the most stringent
quality and hygienic standards.
Eastern
Eastern is a 650 crores company today. The foundation for this phenomenal
achievement lies in core values such as a commitment to high quality. All of their
brands and products work towards creating a unique qualitative relationship with
customers. Their consistent philosophy and way of doing business has endeared their
brands to people all over the world. A well-diversified portfolio of products helps the
Eastern group become a part of everyday life of their customers.
Priyam Masalas
Priyam started in 1987 is a trustworthy name in the field of packed food and
condiment manufacturing industry, has a remarkable place in the hearts of taste lovers
worldwide. Its plant situated at Cochin gives the finest quality Curry powder, Tea ,
Pickle, Chutney, Rice powder, Rice ,etc. The whole manufacturing process is
designed with a special emphasis to retain the original taste of respective products.
They take all possible precautions to make that possible. Selections from the best
fields or garden, Hi-tech processing, no human touch line manufacturing, High
quality vacuum packing, speedy delivery are a few to name.
Kaula
This is a new venture from the KRC International Group that introduced
brands such as Ramble, Joggy, Border, Golden Concept Catering, Fresh Food
Restaurant and so on is being marketed across the GCC by KRC International FZE.
The new range of the best of food products is fast becoming a big sensation among
the people who savour taste and health above everything else.

Porters five forces Model. Porter's Five Forces of Competitive Position Analyses was
developed in 1979 by Michael E Porter of Harvard Business School as a simple
framework for assessing and evaluating the competitive strength and position of a
business organization.This theory is based on the concept that there are five forces that

18

determine the competitive intensity and attractiveness of a market. Porters five forces
help to identify where power lies in a business situation. This is useful both in
understanding the strength of an organizations current competitive position, and the
strength of a position that an organization may look to move into. Strategic analysts
often use Porters five forces to understand whether new products or services are
potentially profitable. By understanding where power lies, the theory can also be used
to identify areas of strength, to improve weaknesses and to avoid mistakes. A change
in any of the forces normally required a company to reassess the marketplace. The
overall industry attractiveness does not imply that every firm in the industry will
receive the same profitability. Firms are able to apply their core competences,
business model or network to achieve a profit above the industry average. A clear
example of this is the airline industry. As an industry, profitability is low and yet
individual companies, by applying unique business model have been able to make a
return in excess of the industry average.
According to Porter, the five forces model should be used at the industry level; it is not
designed to be used at the industry group or industry sector level. An industry is defined
at a lower, more basic level: a market in which similar or closely related products and/or
services are sold to buyers. Firms that compete in a single industry should develop, at a
minimum, one five forces analysis for its industry. Porter makes clear that for diversified
companies, the first fundamental issue in corporate strategy is the selection of industries
(lines of business) in which the company should compete.

19

Threat of
New Entry

Supplier
Power

Competitive
Rivalry

Buyer
Power

Threat of
Substitution

Figure 1
Porters five forces of competitive position analysis

Five Forces Analysis assumes that there are five important forces that determine
competitive power in a business situation. These are:
Supplier Power. Here you assess how easy it is for suppliers to drive up
prices. This is driven by the number of suppliers of each key input, the uniqueness of
their product or service, their strength and control over you, the cost of switching
from one to another, and so on. The fewer the supplier choices you have, and the
more you need suppliers' help, the more powerful your suppliers are. Manjilas has a
very powerful purchase department and they mainly depends on large number of
suppliers. They purchase the products according to the quality measures assured by
the production department.

20

Buyer Power. Here you ask yourself how easy it is for buyers to drive prices
down. Again, this is driven by the number of buyers, the importance of each
individual buyer to your business, the cost to them of switching from your products
and services to those of someone else, and so on. If you deal with few, powerful
buyers, then they are often able to dictate terms to you.
Manjilas provide wide variety of products to its customers. Manjilas has a wide
market including Kerala, Outside Kerala and Exports. So the problem of buyer
power is not affected to this company.
Competitive Rivalry. What is important here is the number and capability of
your competitors. If you have many competitors, and they offer equally attractive
products and services, then you'll most likely have little power in the situation,
because suppliers and buyers will go elsewhere if they don't get a good deal from
you. On the other hand, if no-one else can do what you do, then you can often have
tremendous strength. Nirapara and Eastern are the main competitors of Double
Horse. They also give more priority to quality but Double Horse has a great history
and wide number of traditional customers.
Threat of Substitution. This is affected by the ability of your customers to
find a different way of doing what you do for example, if you supply a unique
software product that automates an important process, people may substitute by
doing the process manually or by outsourcing it. If substitution is easy and
substitution is viable, then this weakens your power.
Threat of New Entry. Power is also affected by the ability of people to enter
your market. If it costs little in time or money to enter your market and compete
effectively, if there are few economies of scale in place, or if you have little
protection for your key technologies, then new competitors can quickly enter your
market and weaken your position. If you have strong and durable barriers to entry,
then you can preserve a favorable position and take fair advantage of it. Threat of
new entry is not a problem for Double Horse . They uses the most modern
technology for production process and distribution which helps in the smooth flow of
products in the market.

CHAPTER THREE

ORGANIZATIONAL ANALYSIS

22

Background and History

Manjilas rice saga began from the humble environs of the rice bazaar, Thrissur
which is the cultural capital of Kerala. It was here late Sri M.O John started his rice
vending outlet in the year 1959. He was a visionary who brought about a great
revolution in the rice industry. He was the founder general secretary of Vyapari
Vyvasai Ekopana Samithi, as association of the business community of Kerala. He
was also the president of Chamber of Commerce, Thrissur (1993-2000).Thanks to the
wide vision of this great man, Manjilas make about 14 varieties of rice and about
50varieties of food products under the famous brand name Double Horse.
Today Manjilas is the first ISO 9002company in the rice industry in Kerala
and presently the company has been awarded with ISO 9001:2000 certificates.
Manjilas has 6 manufacturing units, employing 600 people. These units use the state
of the art imported technology. A strong R & D department and special development
kitchen has helped to launch many innovative products giving novelty to the
customers taste and appetite.
DOUBLE HORSE is available across length and breadth of India, Middle
East, USA & Europe . As the brand logo suggests the horse is galloping to reach great
heights. For the last two years the company is on track of profit making with the
introduction of more rice items as well as food products like puttupodi ,pickles, etc.,.
All the products are of high quality. The quality of the products are much fine that
they have gained fame abroad.
Countries: US, Canada, Gulf countries are the export target of this company.
History of the Company
When M.O John started Manjilas mill in 1959, he had the only intention of
providing the pure rice to malayalees. Years ago the ancestors of M.O John were
dedicated to deliver rice for the Royal family. They were doing these processes
through buying raw rice from agriculture farms and making transform raw rice to rice.
They gave importance to quality because they have to deliver the rice to the royal
family. Now, there were no ruling and Manjilas give that much importance to quality.
In the ancient time M.O. Johns father commenced rice trading and started it
as a business. By starting his own rice mill M.O. John gave an introduction to the rice
industry in Kerala. By starting a modern rice mill in 1976 he brought up his business

23

in a new turning point. Innovation should brought up in the business but dont be over
aggressive. This was his concept about business. Rice being an inevitable food item
he had the vision that rice should be available in at ordinary rate and for the growth of
business he was not ready to raise the price.
Manjilas introduced branded rice in the market. By introducing rice powdering
1994 they started differentiation of products. In the olden days the keralites have been
buying rice from the shop and after washing it they gave it to the mill for getting rice
powder. Because of these, all market analysts were having the doubts regarding the
success of the rice powder from Manjilas group. But within 6 months Manjilas got a
favourable reply from customers. After rice powder, by introducing idly mix, dosa
mix, easy palappam and instant idiayappam, Double Horse can lead the market
according to the needs of the society.
Food processing industry is one of the fast changing industries in the world.
To utilize the opportunities out of the changes. Manjilas used product innovation and
regular research. The children of M.O John implemented the new technologies in rice
industry and they brought at rice industry into new meaning. Now they are leading
with their father M.O.Johns long perceptiveness and insight. After the death of M.O
John, Double Horse products entered into diversification under the able guidance of
his sons. Now, the research and developments department are working continuously
for developing new products.
Establishment
Manjilas food products were founded in the year 1995. As todays life style
has changed tremendously, there has been a wide change in the eating habits of
people. Keeping this aspects in mind Manjilas food products has entered to the cater
the changing taste and appetite of the consumers. The unit produces various rice
based value added products, instant mixes, ready to eat products etc. in the famous
brand name Double Horse.
Manjilas has 6 manufacturing units employing 600 people. The unit used the state
of art imported technology. A strong R & D department and special developed kitchen
had helped to launch many innovative products giving novelty to the customers taste and
appetitive. The unit has a capacity of 10 tons per day and has 45 dedicated staff that is
always on the look out to give the best quality products throughout. The unit uses state of
art packaging technologies to maintain the freshness and aroma of the products. Today,
Manjilas Double Horse offers its customers the widest variety of food with more than 20
superior types of rice and 100 premium quality food products in different ranges.

24

Vision: To become the leader in the food industry, offering the widest variety
of high quality food products that become a way of life for all those who love good
food, across the globe.
Mission: To come out with a wide variety of innovative food products, that
combines health, taste & convenience, so as to make cooking good fun and easy.

Quality Policy
Manjilas is committed to give total satisfaction to their customers through continuous
improvement of products, processes and distribution.

Objectives of the Company

The main objective of the company is to provide quality products at a reasonable
price to its customers. They give more priority to their customers. By implementing new
technologies in the manufacturing process will reduce the cost of production. The new
objective of the company is to increase market share and to make products of the
company all over the world and thus enhance the annual turnover.

Companies Under the Group

Group of companies include Manjilas Food Tech. Pvt. Ltd., Kottekkad, Thrissur and
Vannamada, Palakkad, Manjilas Agro Foods Pvt. Ltd., Cheramangalam, Palakkad and
Naripotta, Palakkad,Q One Foods and Ingredients Pvt. Ltd., Unjuvelampetti, Pollachi,
Tamil Nadu and M.O. John & Sons (Exports), Kolangattukara, Thrissur.

Products and Markets

Manjilas started off with Rice vending outlet 56 years ago, Today Double Horse
offers its customers the widest variety of good food with more than 10 superior types
of rice and 100 premium quality food products in different ranges.
It has always stayed a market leader with introduction of Rice products almost 35 years
into the finding of the company and later moving on to Wheat products, Masalas,

Pickles, health products and instant food products. The latest in the series being the
Retort products which was a result of efforts of the R&D kitchen.
With more than 100 products to offer, Double horse has become an inevitable name in
the malayali house hold.

25

Following are the complete list of products from Double Horse.

Rice
In the rice category company produces Rose Matta, Cherumani , Jyothi Matta, Red
Raw Rice, Matta Broken, Ponni Rice , Single Matta, Jaya Rice , Idli Rice, Raw Rice
Meals Ghee Rice, B.T.Meal and Jeerakasala Rice
Rice Products
The following are rice based products manufactured in the company- Easy Palappam
Mix, Appam Idiyappam Pathiri Rice Flour, Aval Thick, Dosa Mix, White Rice Flour,
Idly Mix, Roasted Pathiri Flour, Palappam Mix, Vattayappam Mix, Red Aval, White
Aval, Thick Aval.
Puttupodi
White Puttu Podi, Samba Wheat Puttu Podi, Chemba Puttu Podi, Ragi Puttu Podi,
Corn Puttu Podi
Wheat Product
Chakki Fresh Atta, Samba Broken Wheat, Broken Wheat, Wheat Rava, Samba Wheat
Rava, Roasted Rava, Vermicelli Roasted (Short Cut), Long Vermicelli
Instant Break Fast
Instant Idiyappam, Rice Sevai, Upuma Mix
Paysam & Kheer Mix (Sweet Dishes)
Palada Payasam Mix, Rice Palada Payasam Mix, Vermicelli Kheer Mix, Rice Ada,
Diet Payasam Mix
Health Products
Banana Powder, Health Mix, Ragi Vita, Ragi Powder.

26

Instant Ready to Eat

Chakka Varatty (Jack Fruit Dessert), Pazham Varatty (Kerala Banana Jam), Boiled
Chinese Potato (Koorkka), Nadan Kappa Puzhukku (Kerala Tapioca Curry), Roasted
Coconut Gravy
Instant Ready To Eat Cup Payasams
Wheat Payasam, Palada Payasam, Vermicelli Payasam
Instant Ready to Cook Curry Mix
Chicken Biryani Mix, Kerala Meat Curry Mix, Kerala Chicken Curry Mix, Kerala
Fish Curry Mix, Sambar Mix.
Pickles
Veg Pickles, Non Veg Pickles, Vegetables in Brine
Masalas
Sambar Powder, Chicken Masala, Meat Masala, Pickle Powder, Fish Masala, Rasam
Powder, Vegetable Masala, Egg Roast Masala, Biriyani Masala, Garam Masala.
Condiments
Chilli Powder, Coriander Powder, Turmeric Powder, Pepper Powder, Ginger Powder,
Crushed Chilli, kashmiri Chilli.
Others
Coconut Chammanthi Podi, Tamarind, Jaggery, Cocount Oil, Papad, Vinegar, Soya
Chunks, Macaroni, Black Tamarind, Asafoetida Cake, Asafoetida Powder, Mustard,
Fenugreek, Cumin, Fennel, Soya Chunks Nano, Chutney Powder.

Awards
Company has received many awards/recognitions during our years of service.Following
are a few among the many. Life Time Achievements Awards to the Founder by The
Chamber of Commerce, Thrissur. Award for Management Excellence 2007 by Trichur
Management Association. Enterpreneur of the Year 2007-08 award by Investors Club,
Thrissur. Energy Conservation Award 2008 by Energy Conservation Society (ECS).

27

Best Entrepreneur of the year 2009 award by The Chamber of Commerce, Thrissur.
Icon D' Product 2011-Award of Excellence by New Age Business daily. The
Emerging Entrepreneur Award 2012 by Thrissur Dist. Investure Development
Society. Best Entrepreneur of the year 2012 award by School of Management Studies,
University of Calicut.

Recognitions
Keralas modern rice mill. It is the first rice mill which has branded rice product. It is the
first rice mill which has implemented LSU driver from USA.It is the first rice mill which
supply product free from adulteration. First rice mill which has introduced sorted machine
from England. First rice mill which has introduced SATAKE machineries from Japan.
First rice mill which has introduced Bubbar machineries from Buhler in Germany. It is
the first rice mill which has introduced repacking system.

Certifications
Manjilas is the first ISO 9001:2000 certified rice mill in Kerala. The company
has also been certified with ISO 9002.

28

Organizational Structure

CHAIRMAN

GM
MARKETING
MANAGING
DIRECTOR

AGM HR

GM
ACCOUNTS

DIRECTORS

DIRECTORS

AGM
PRODUCTION

GM
PURCHASE

Figure 2
Organisation Structure
Adapted from Company Manual

ASST.
MANAGER
IT

29

Functional Analysis
Departmentation is a process of dividing the large functions into small and
administrative units. The basic needs of the departmentation arises because of the
limitation on the number of subordinates that can be directly managed by the
supervisor. Departments are divided on the basis of functions, products, regions,
customers, time, etc. Functional basis is very popular method. It refers to grouping the
activities into small units, each with separate layout, departmental heads, employees
etc.
Manjilas has following departments- Purchase Department, Warehouse Department,
Production Department, Marketing & Sales Department, Finance Department, Human
Resource Department, IT Department, Research & Development Department, Media
and Design Department

30

Purchase Department
The main duty of this department is to verify the purchase or derquantified and
value of the bill or move at store for correct address or quantity .Checking a number
of Packages received and acknowledge the bill. Preparation of daily material receipt
and inform to lab authorities for inspection. After getting the inspection report is
should be entered in to the stock register.
Purchase Department Structure

GM PURCHASE

REGIONAL
MANAGER

MANAGER

EXECUTIVES

Figure 3
Adapted from Company Manual
Mode of purchase

1. Centralized
2. Seasonal
3. Maintains minimum stock

31

Company has many permanent suppliers inside and outside the state. Raw
materials Purchase from different places according to the price and quality. They give
purchase order to the suppliers according to the purchase request. The suppliers bring
materials directly to the factory. After the of goods the quality of the material will be
check, if here is any damage it will return back to the suppliers, Payment should be
done after the delivery and quality checked. Payment should be in the form of either
cash payment or demand draft. Sometimes advanced payment also given suppliers in
credit system.
Functions of Purchase Department
Procurement
To procure material economically at a cost consistent with the quality and services
required. However, generally all purchases may be attempted at the lower cost.
Market Information
In view of the fast changes in market conditions, the purchase department must keep
up-to-date information regarding the price movements, technological factors, delivery
schedule, reliability of supplies and the various terms at which goods can be supplied.
The purchase department can take this information from traders, electronic media ,
competition etc, .
Determination and description of quality
There are a number of problems in deciding about best buy and often the purchase
manager needs considerable technical knowledge before he can purchase goods of the
best quality.
Control of quality and quantity
On receipt of goods, the purchase department has to ensure that goods are of the same
quality and quantity as were ordered. This may be done through inspection and
laboratory tests.
Selecting adequate sources of supply
The purchase manager on the basis of his previous experience, marketing information and
market survey has to maintain a list of the suppliers who could supply him materials of
the requisite quality, quantity and at the right time. More over purchase department helps
in fixing the price of the product and they must maintain a close relationship with QC and

32

production department. Maintaining the optimum inventory is also important.

Warehouse Department
The Warehouse Department of Manjilas Food Tech plays a vital role in efficient supply of
goods to its customers. Warehouse is a commercial building for storage of goods.

Warehouse Department Structure

AGM

MANAGER

ASST.
MANAGER

CO-ORDINATOR

SUPERVISOR

Figure 4
Adapted from Company Manual

WORKERS

33

Functions of Warehouse Department

Receiving

Identification & sorting

Dispatching to storage

Placing in storage

Storage

Order accumulation

Packing

Record keeping

Retrieval from storage

34

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

AGM

MANAGER

ASST.
MANAGER

EXECUTIVE

SUPERVISOR

WORKERS

Figure 5
Adapted from Company Manual
Production Department Structure
The production department manufactures goods for the business which are then sold
in order to bring revenue for the business. Every aspects of production is controlled by

35

production department. By controlling production, the department efficiently uses things

such as labour, machines and materials judiciously in order to prevent any wastage. The
department improves on the production of the business by bringing changes and
innovations. The production department makes sure that it produces goods or products at
very low costs in order to maximize profit. The production department works in
collaboration with the purchase department of the company in order to make sure that
materials needed for production are always available. The department also makes sure
that the machines and equipments used in production are serviced and properly
maintained all the time.

Production Process
Complete production process is done with the help of machine and operated by
skilled people .Department will set the standards and targets for each section of
Production process. The quality and quantity of the products coming off a production
line will be closely monitored. Quality will be monitored by all employees at every
stage of production, after completed the production quality control department will
ensure the quality of the product, quality is the peculiarity of the DOUBLE HORSE
products. Company creates better working conditions for the employees and there are
around 1200 employees working under the guidance of 10supervisors.The complete
production process is done with the help of manual machine and operated by skilled
people. The company will check the quality of the machinery at regular intervel for
the smooth running of the production.

36

PURCHASE
RAW
MATERIAL

STOCK

CLEANING
PROCESS

ROASTING
PROCESS

MIXING IN
BLENDER

POWDERING
IN
PULVERIZER

PACKING

Figure 6
Adapted from Company Manual
Production Process

37

Marketing and Sales Department

The marketing department must act as a guide and lead the company
companys other departments in developing, procuring, fulfilling and servicing
products or service for their customers .Communication is vital. The marketing
department typically has a better understanding of the market and customer needs but
should act independently of product development or customer service. Marketing
should be involved and there should be a meeting of the minds, whenever discussion
are held regarding new product development or any customer related function of the
company. DOUBLE HORSE has an excellent marketing network that extends across
the length and breadth of the country and has substantial network in roads into the
Middle EAST, USA , and European markets . There by ensuring a steady supply and
regular distribution of DOUBLE HORSE products. DOUBLE HORSE has created
and produced a stunning range of over 100 instant, ready to cook and ready to eat
products that replicate authentic Kerala food, with an excellent marketing.

Marketing and sales department consists of marketing manager, north area and
south area managers, area sales managers, sales executives and marketing coordinator.
The marketing and sales department is headed by the Marketing manager. Marketing
department is entrusted with the function of planning and executing the consumption,
pricing , promotion and distribution of ideas , goods and services to create exchange that
satisfy individual and organizational goals. In simple term a marketing department
researching into the identifying consumer needs and employing appropriate price
,products ,place and promotion strategies in order to satisfy these needs profitably.

Manjilas introduced branded rice in the market, because is an inevitable food

item in the Kerala. They introduced rice powder, idli mix, dosa mix, easy palappam,
and instant idiyappam, into the market according to the needs of the society. They
introducing right products, at right price, at right place with a suitable brand name
DOUBLE HORSE.

38

Marketing and Sales Department Structure

GM

SENIOR
MANAGER

MANAGER

SALES
MANAGER

AREA SALES
MANAGER

SALES
EXECUTIVES

SALES
REPRESENTATIV
E

Figure 7
Adapted from Company Manual
Marketing and Sales Department Structure

39

Marketing is classified into three types they are:- Domestic, National, Inter National.

Functions
It is responsible for monitoring of sales in the area. It is responsible for
monitoring of price and terms of the company products compared to the
competitors. It is responsible for processing credit proposals for dealers
institutions. It is responsible for processing proposals for extending special
incentives/credit terms to dealer. It is responsible for committee work for
appropriate cancellation of dealers. It is responsible for processing proposals
for special arrangements/sales terms with bulk buyers/commodity. It is
responsible for sales force motivation through internal and external training
programs. It is responsible for processing and sending replies to audit queries
at divisional level. It is responsible for monitoring the MIS from the market
research department and from field establishments. It is responsible for
monitoring overdue and outstanding of area/credit management. It is
responsible for coordinating of sales promotion and marketing development
activities. It is responsible for supervising and controlling the sales promotion
service departments.

Objectives of Marketing

To develop the market fields.

To develop the guiding policies and the implementation for good result.

To suggest solution by studying the problem relating to marketing.

To find sources for further information concerning the market problems.

To take appropriate actions in the course of action.

40

Finance Department
The finance department look after the entire function of the company. The major
source of the fund is capital and reserve surplus, This department has to raise necessary
funds ,manage them, prepare finance budgets and administer its working capital .The
office supplies necessary data to finance and carry out its function effectively .It
maintains records for helping the finance manager to access the appropriateness of capital
structure .It provides the data for the preparation of the budgets and various financial
statements .The accounting function of the department includes the preparation of trial
balance on yearly basis. They also prepare managerial reports regarding expenditure of
travelling, postal, telephone and courier transactions. Finance is the most important
function to be carried to achieve the progress of the organization.

The functions of finance department are diverse with distinct procedures for
account related to personal purchase, stores marketing, work contract, costing,
budgeting, central excise etc. Payment for raw material and stores are being made in
time. The company is at present making all statutory payments in time. Finance
department include finance manager, chief accountant and accountant.
One of the major roles of the finance department is to identity appropriate
financial information prior to communicating this information to managers and
decision-makers, in order that they may make informed judgments and decisions.

41

Finance Department Structure

GM

FINANCE
MANAGER

ACCOUNTANT

CASHIER

Figure 8
Adapted from Company Manual
Finance Department Structure
Objectives
The objective of the financial department of the company is to maximize
companys economic welfare. There are mainly two steps for achieving this specific
objective. They are :
Profit Maximization
Profit earning is the main aim of every economic activity. No business can
survive without earning profit. Profit also serves as a protection against the risks
which cannot be measured. Thus, profit maximization is considered as the main
objective of the business.
Wealth Maximization When the firm maximizes the stockholders wealth, the
individual stockholder can use this wealth to maximize his individual utility. Manjilas
Food Tech is looking for expansion and this wealth maximization is very important for

42

this organization. The main activities of the company finance department are broadly
classified in to three.
Receiving finance

Spending finance

Finance research & analysis

Receiving Finance
The funds are collected for the effective usage of finance resource. The
company collects funds from following sources:- The firm collects funds from its
sales procedure. The sale may be cash. In the cash sales, the cash is directly received
by the department within a certain period. Funds can be arranged as loans, loans can
be taken from the banks and other financial institutions in the form of Bank OD, cash
credit, loans etc. Company gets income from investments that made outside the
business. They are made carefully to ensure that safety, speedy and profitable.
Allocation of Finance
Finance department spends funds for the operation of the business. Funds must be
controlled correctly for the existence of business. The company mainly spends funds for
procurement of raw materials, raw materials are the main direct materials used in the
production process. The company spends above 40% of total income of the firm. The
company spends next most funds for the employees wages and office salary. Finance
department co-operate with HR department for this function. Funds are spending for
office expenses, power charges, transportation charges etc.

Finance Research & Analysis

The company uses various research techniques to improve the firms efficiency.
The various research and analysis tricks of the company are follows: The Company
uses various ratio analysis to evaluate the results of the firm. The main ratio that are
analysed were Gross Profit Ratio, Net Profit Ratio, Solvency Ratio, Working Capital
Turnover Ratio, Current Ratio and Liquidity Ratio. Company prepares all cost sheets
of production with the help of accounting department and then it control costs.
Functions
The functions of the finance department of the company are follows:

43

Cost Accounting Function

Being a manufacturing company it is essential to determine the cost of
production of the products. Here all the products are manufactured as batches. So
batch cost is done. The company has no cost department.
Cash Collection and Disbursement
Company is doing credit purchase and credit sales. The company makes
payment to its suppliers within one month. The debtors of the company are also
allowed to settle the debt within one month.
Working Capital Management
Working capital is the capital required for a company to run the day today
activities of the company. The company is satisfying its working capital requirements
by using retained earnings.
Taxation
Taxation means an amount that is payable to Government on the basis of
income earned through a business. Every company has to pay income tax on the basis
of their income. They also want to pay Sales Tax to the Government.

44

Human Resource Department

Human Resource Department is the department or support systems responsible
for personnel sourcing and hiring, applicant tracking, skills development and tracking,
benefits administration and compliance with associated government regulations.
A human resources department is a critical component of employee well-being in any
business, no matter how small. HR responsibilities include payroll, benefits, hiring,
firing, and keeping up to date with state and federal tax laws.
HR Department Structure
AGM HR

MANAGER

ASST.
MANAGER

EXECUTIVES

Figure 9
Adapted from Company Manual
Human Resource Department Structure
Functions of HR
Manpower Planning and Recruitment
Human resources are regarded as the only dynamic factor of production. Other
factors like materials, methods, machines, money etc. are useless without their effective
use by the human resources. Thus, it is logical that there should be proper manpower or
human resource planning in the organization to use the other resources effectively. HR
Department forecasts the manpower requirement for the financial year in line with

45

the organizational objectives. They mainly depend on the internal sources of the
organization. Average time to fill the vacancy is 45 days & maximum 90 days.
Maintaining Attendance and Pay rolling
It is one of the major function of HR department in this organization. They get
the attendance downloaded from the Bio Metric Scanner by the location HR
representatives who are appointed in all factories of Double Horse. They send the
attendance to the HR persons in the Head Office for helping them to prepare the
Salary Statement and send to accounts for transfer.
Statutory Compliances
Preparation of Statutory Compliances is another important function.
Preparation of Provident Fund Statements and ESI etc.,. They must remit it on time
otherwise they must pay the damages for delay.
Training and development
Training and development is a function of human resource management
concerned with organizational activity aimed at bettering the performance of
individuals and groups in organizational settings. It has been known by several names,
including "human resource development", and "learning and development".They
identify the training needs in co-ordination with representative head of departments
and prepare the Training Calendar for the training.

Performance Management System

Each role of the employees of the organization has to be appraised or evaluated
with their functional KRAs and soft skills which are already set in the organization.

After evaluation of employees, they decide the promotions and salary hike depending
upon their performance.
Staff Welfare Activities
The organization is in the process of modifying the existing Staff Welfare
Measures by introducing new beneficial welfare measures to the employees and their
families.

46

Record keeping by the department

Personal file: The department keeps separate personnel file for each
worker an employee whom permanently employed.

Leave Register.

Insurance records: Insurance record of human resources and the

factory premises are kept and adopted by personnel department.

Salary slip and Wage Register

Others: Personal department keeps all the record related with the
factory licensing with all level of government and local authorities.

Marriage fund
Marriage funds are provided according to the year of experience and grade of
employee. (For eg: an executive officer with 3 year experience will get 1000 as
marriage fund)
Social activities
The company takes care of the needs of the local people with the consideration
.The includes construction of buildings ,waiting shed ,donation to various charitable
organizations, uniforms and books for pure children etc.

Research and Development Department

Double horse food products have well established R & D department involved
in the development of traditional as well as innovative products giving novelty to the
customers taste and appetite. As a part of the golden jubilee year (2009), the company
aimed at launching 50 new products with prime importance for ready to eat products
and masala mixes.

Quality Control Department

Quality control department refers to the ways and means where quality standards
are maintained. The aim of quality control is not only to improve quality of products, but
also to eliminate bad quality goods. Once the quality standard is set, then it should be
achieved and maintained in future and efforts should be made to improve

47

it further. Manjilas group of companies have set up a quality control department for
the purpose of determining the quality of the product. Different types of tools are used
for the purpose of checking control. Their department consists of 7 people headed by
the quality control manager. Double horse emphasis on maintaining strict quality
parameters that involves the detection of total bacterial count, Total fungal count,
Collide forms, Detection of pathogens like e.coli, Staphylococcus, salmonella,
bacillus, listeria, clostridium and so on.

IT Department
The company has a good IT team that helps out with the data management,
computer networking, computer engineering, database systems design, software design,
Management Information Systems, systems management or system administration.

The objectives of the IT department includes:

To ensure protection and security of data.

To minimize duplication of effort, services and resources.

To eliminate inefficient and costly redundancies.

To eliminate non compatible standards and architectures.

To identify obstacles for departments wanting to move computing operations

to the division of information technology and solve it immediately.

SAP (Systems Applications and Products) was implemented and centralized in the
company in the year 2005. SAP enables fast transaction and is systematic in all its
functions. SAP also helps in generating MIS reports which help in decision making.

Media and Design Department

Media and design department deals with the advertisement and promotional
activities required for the products and the company. The design department is mainly
focused on the outlook of the packing material of a desired product. Media department
associates with the advertisement and all the necessary promotional measures required for
the selling of a product. Media has a huge role in the sales of the product produced.

The brand ambassador of Manjilas Double Horse is Ms. Shobana, renowned for her
exquisite dancing and acting skills.

48

Organizational Analysis
Key Resources
Key resources are the important resources behind the success of the
organization. Manjilas, the mother brand of Double Horse, was founded in the year
1959, as a rice milling company selling high-quality rice grains. The brand, on the
strength of its commitment to deliver only the best to its customers have witnessed a
phenomenal growth over the years. The goodwill among the customers is one of the
most important resources of Double Horse. This goodwill is generated by the quality
assurance policies of Manjilas. Double Horse is the first ISO 9001:2000 certified Rice
Mill in the Kerala, the company follows stringent quality checks at every stage of
production- right from procurement to packaging so that only the best food, in all its
natural goodness, reaches to its customers.
The raw materials are chosen by expert professionals and procured from the
finest sources across the country, in order to ensure consistent quality and taste. The
products are then sorted, cleaned and processed/blended in hygienic environment, to
retain their natural taste, nutrition and flavour; and then packed using state-of-the-art
technology to seal in the freshness. Double Horse does not use Class II preservatives
(Sorbites, Sulphites, Benzovites) that are harmful to health. Hence, even in preserved
categories like veg pickle ranges, only natural preservatives like salt, vinegar and
vegetable oil are used. No Double Horse products contain artificial sweeteners,
flavouring or chemical colours.
Manjilas Double Horse offers its customers the widest variety of good food
with more than 20 superior types of rice and 100 premium quality food products in
different ranges. The instant products like instant idiyappam , instant palappam etc
helps to maintain a strong participation in the market.
Another important resource of Manjilas is the human resources of the
organization. As it is a family concern the Board of Directors have a close touch with
the employees of the organization. It will create a positive attitude among the
employees and they work well for the development of the organization. The company
provides so many facilities to its employees like interest free loans , free food etc., .
They provide free lunch to the employees.

49

Warehouse of the company is situated at Kottekad in Thrissur which is the

central part of Kerala. The market of Manjilas in kerala is classified into two , North
and South. The warehouse in Thrissur help them to supply their products without any
delay. The technological development in the organization is also a major resource of
Manjilas . SAP (System Assessment Procedure) was implemented and centralized in
the company in the year 2005. SAP enables fast transaction and is systematic in all its
functions. SAP also helps in generating MIS reports which help in decision making.
An Application called Field Max is also used in this organization which was
developed by Technopark, Trivandrum. It reduces wastage of time of marketing
executives by providing real time ordering of products.

SWOT Analysis
A tool that identifies the strength, weakness, opportunities and threats of an
organization. Specifically, SWOT is a basic, straight forward model that assesses
what an organization can and cannot do as well as its potential opportunities and
threats. The method of SWOT analysis is to take the information from an
environmental analysis and separate it into internal (strength and weakness) and
external issues (opportunities and threats). Once this is completed , SWOT analysis
determines what may assist the firm in accomplishing its objectives , and what
obstacles must be overcome or minimized to achieve desired results.
A SWOT analysis is structured planning method used to evaluate the strength, weakness,
opportunities and threats involved in a project or in a business venture . A SWOT
analysis can be carried out for a product ,place , industry or person. It involves specifying
the objectives of the business venture or project and identifying the internal and external
factors that are favourable and unfavourable to achieve the objective.

Strength
The decisions made in the company are quick. The company changing in a rapid
phase. There is no major competition apart from three or four unique products.
Manjilas Food Tech being a family oriented business so there is a close touch with the
employees of the organization. There are no labour union which is big merit. The
company policies are employee friendly policies.

50

Weakness
There is resistance to change by certain employees. There is a lack of corporate
structure. There is an infrastructural limitation.
Opportunities
There is high boom in the market. They have very good governmental support. There
is a customer income. Indian products exported to foreign countries are gaining
demand. There is an increase in brand presence in other states. There are more
professionals in the organization.
Threats
Changing market scenario because of more competitors planning to enter into the
market is a major threat for the organization. There is a poor infrastructural break
downs. Frequently changing government policies and tax rates is a major threat for
the organization.

51

CHAPTER FOUR

OBSERVATION AND CONCLUSION

52
Observations
Effective welfare measures have been provided to the employees and there is a
good team spirit among the employees. There exists good employee-employer
relationship. The company maintains a safe and secure atmosphere.
Company considers training and development of employees important and as part
of its responsibilities. Manjilas food products mainly focusing on traditional foods
with great quality. They provide wide variety of goods in the market. Manjilas is
stricter in quality of products and quality checking can be done through modern
techniques.

Conclusion
The organization study done on Manjilas Food Tech Pvt Ltd. helped me to get clear
picture of the organization and its management function. The employees of the
company are satisfied with the company and Double Horse is one of the leading
manufacturers of food products in Kerala and outside Kerala. Company is well
equipped with most modern machinery and technology to produce the whole
variety of products in the market. The study has accomplished several goals. The
study has helped to familiarize with working conditions of the organization. It has
helped to study the coordination among various departments. It also helped to
understand the various operations of the departments in the organization.

53

BIBILOGRAPHY

Aswathappa, K. (2005).Resource and Personal management.New Delhi:

Tata McGraw-Hill Publishing Company Ltd. Fourth edition

Aswathappa ,K., SridharaBhata, K.(2005). Production and Operations

management.place of publishing:Himalaya Publishing House

Jain, P.k. Khan, M.Y.(2005). Financial management. place of

publishing:Tata McGraw-Hill Publishing Company Ltd, Fourth edition

Kothari, C R.(2004).Research Methodology. place of publishing: Prenticehall of India Private Limited, Eleventh edition

Flippo, Edward .B.(1984). Personal Management. New Delhi: Mc Graw Hill

Kotler, Philip. ( 2009).Human Resource Management. New Delhi: New

age Publication.