1

INTERNSHIP TRAINING REPORT AT

NIRAPARA(KKR MILLS)KALADY
ERNAKULAM



Submitted in partial fulfillment for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
by
SEBIN MANI
REG NO: 721513631048






NEHRU INSTITUTE OF INFORMATION TECHNOLOGY AND
MANAGEMENT
(Affiliated to Anna University: Chennai)
NEHRU GARDENS, T.M PALAYAM P.O, COIMBATORE-641105

AUGUST 2014


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BONAFIDE CERTIFICATE

Certified that the Internship Report from NIRAPARA(KKR MILLS) is the
bonafide work of Mr.Sebin Mani, carried out under my supervision.




SUPERVISOR HEAD OF THE DEPARTMENT


Dr.K.RAVIKUMAR Dr. K.RAVI KUMAR
Professor &Head Professor & Head
Nehru Institute of Information Nehru Institute of Information
Technology and Management, Technology and Management
Nehru gardens, Nehru gardens,
Coimbatore -641 105. Coimbatore 641 105.


Submitted for the Internship Viva-Voce examination held on ___________


Internal Examiner External Examiner
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DECLARATION

I, affirm that the Intership Training report undertaken at NIRAPARA(KKR
MILLS) being submitted in partial fulfillment for the award of MASTER OF
BUSINESS ADMINISTRATION is the original work carried out by me. It has not
formed the part of any other project work / Internship report submitted for award of
any Degree or Diploma, either in this or any other University.


(Siganture of the Student)
SEBIN MANI
REG NO: 721513631048












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ACKNOWLEDGEMENT
At the start, I would like to express my sincere gratitude to CEO & Secretary Dr.
Krishna Kumar. I acknowledge my sincere thanks to Dr. R. Moses Daniel,
Principal of NIITM Coimbatore for his encouragement and help in making this
project.
My sincere thanks also go to the Head of the Department, Dr. K. Ravi Kumar for his
prompt helpfulness and guidance. I take this opportunity to express my thanks to all
faculties of Master of Business Administration,NIITM Coimbatore for their valuable
suggestions and support.
I proudly utilize this opportunity to express my thanks and sincere gratitude to my
esteemed guide, Mr.Dr.K.Ravikumar,HEAD of MBA, NIITM Coimbatore, without
whose guidance and encouragement, it would not have been possible for me to bring
out the project work.
It is my pleasure to record my sincere thanks to my guide Mrs.bijimol jose (manager)
and the staffs of nirapara(kkr millls).











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TABLE OF CONTENTS

CHAPTER
NO.
TITLE PAGE NO.
Executive Summary 06
1 Introduction 07
2 Overview of Industry 10
3 Company Profile 11
4 Organization Chart 14
5 Departments 15
6 Swot Analysis 48
7 Managerial Skill Acquired 50
8 Summary and Conclusion 51
Bibiliography 52











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EXECUTIVE SUMMARY
I had started my internship training from jun 18
th
to jul 21
st
in KKR Group
of companies.
KKR Group set up Nirapara in 1976, it had a vision to bring quality food
products into each and every home in South India. Now it has grown into one of the
most technologically advanced food products manufacturing companies in India.

This scientific technique attracting wealth and opportunity comes from the
trusted KKR Group, an ISO 9001-2008 certification company with HACCP
certification and the leading manufacturers, distributors and exporters of premium
food products in the world since 1976.The KKR Group has been synonymous for
tradition, culture, trust and quality for the last 33 years.
The only factory in South India with Rs 25cr Buhler Machine from Germany
and Z-sortex Machine from England for optical inspection, They own the food
products that define the real taste of Kerala. Company is bound to keep the utmost
quality standards for each and every product which it brings out, time to time.

The internship period helps me to learn various managerial functions and
how to overcome certain problems when there is an issue and how important is
maintaining workers-management relations is the key in developing the business.

















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INTRODUCTION

Organization is a social unit which is deliberately constructed and
reconstruction to seek specific goal. An organization comes into existence when there
are a number of persons in communication and relationship to each other and are
willing to contribute towards a common endeavor.

Organization study is the systematic study and careful application of
knowledge about how people as individuals and as groups act within the organization.
The study encompasses the study of organization from multiple view point methods
and levels of analysis. The organization study is to get an understanding of the
structure and functioning of the organization and also to familiarize with the ways in
which basic management concepts and principles practically applied in the
organization.

The present organization study was conducted at KKR Group of companies,
Okkal, Kalady, a place near Angamaly, which has 11 km from Cochin International
Airport. The study was conducted for a period of one month. KKR Group of
companies very well known for their brand NIRAPARA is one among the trusted
names in food industry. KKR mills started by Mr. K. K Karnan more than three
decades ago. The company started off with rice manufacturing and they stepped on to
spices, curry powders and pickles. The products get exported to more than 43
countries across the globe. The study aims at providing practical knowledge of the
application of management theories in the functioning of various departments in the
organization.

NEEDS AND SIGNIFICANCE OF STUDY

Organization is one of the inevitable parts of business & management. For the
management students this study has its own importance. It gives practical knowledge
regarding the management of business. The study is conducted with a view to get an
idea about the organization of various departments and how the administration going
on. It helps us to understand different management process and functions.
OBJECTIVES OF THE STUDY

To familiarize with the business organization.

To understand various departmental structure of KKR GROUP.

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To identify and evaluate the strength, weakness, opportunities, threats faced
by the company.

To know the duties and responsibility of key personnel.

To know about the different types of product offered in the KKR Group of
Companies.

METHODOLOGY

The conducted study is based on two types of data. They are;

Primary data

Primary data are those which are collected fresh and for the first time and thus
happen to be original in a character. This data is collected through

Through direct observation of various activities and function

Interviewing the departmental heads, employees and workers


Secondary data

Secondary data are those have already been collected by the firm and which has
already been passed through the statistical process. These data are collected from

Through annual report and audit report of the KKR GROUP.

From related articles and website of KKR GROUP.

SCOPE OF STUDY
The organizational study was intended to provide industrial exposure to the student
and bridge the gap between theory and practice. The study covered the department of
KKR Group of Company namely personnel and administration, marketing, finance
and accounts, production, purchase, export, vehicle, quality control, and research and
development department, was intended for a period of one month from 18
th
jun 2014
onwards. The study was mainly conducted to understand the functions, processes and
procedures of different departments of the company. This training report covers the
details of the departments in which the trainee could get access and interact with
responsible executives.
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LIMITATIONS OF THE STUDY

Due confidentially policies of the company, some relevant information could
not be received.
Company could not reveal its financial statements.

Hindrance in collecting information due to the busy scheduling of the
personnel.

























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OVERVIEW OF INDUSTRY
Rice cultivation is the principal activity and source of income for millions
of households around the world, and several countries of Asia and Africa are highly
dependent on rice as a source of foreign exchange earnings and government revenue.
Rice mill Industry is flourishing day by day, since rice is an unavoidable commodity for
our day today life. Kerala is a consumer state. We have to depend on other states in
order to get paddy. The rice mil1 industries are mainly concentrated at Kalady. There
are around 200 rice mills at Kalady alone.
Food processing is seen as an industry with quick returns, whose gestation
period is much less than that of other industries. This is also the reason why a large
number of NRI investors have shown keen interest in food processing. In the past seven
years, since food processing became the new wave industry, many foreign giants have
decided to enter this segment of the Indian market. The changing life-style of the
people, the increase in urban population, the rise in the literacy level and the enlarged T.
V coverage have triggered greater scope for the food processing industry.
There is a strong economic justification for setting up food industries, from
the viewpoints of farmers and consumers, employment generation and industrialization.
It should however be admitted, the food processing industry in India is still in its
infancy. Institutional demand, the requirements of hotels, restaurants and household
consumption comprise the domestic demand for the processed food industry. The two
characteristics governing consumption of processed food in the household sector are the
change in food habits and standard of living of the people.
As regards the structure of the industry, it is noticed that small and big co-exist in the
industry in India. The food processing industry covers the entire range from wheat flour,
rice milling, oil extraction, sugar etc., to the latest of the ready to eat kind of tinned
and preserved foods. The products need to be manufactured and marketed appropriately
in order to tap the domestic and export potentials of rice, wheal, cereal products,
sugar, preservatives, confectionery, dairy products, fruits, vegetables; fish products,
meat, poultry, ice creams, tea and coffee.
According to the confederation of Indian Food Trade and Industry, the
food processing industry is the largest determinant of GNP, accounting for 19
percent of the total industrial production and employing around 18 percent of the
national labour force
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COMPANY PROFILE
The KKR (Kuruvanpadathu Karunakaran Rice) Groups 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. KKR Group of companies is mainly
involved in manufacturing and marketing Rice, rice powders, spices and pickles from
1976 onwards under the brand name of NIRAPARA.
A venture which started out with traditional method of boiling, sun
drying and milling, grew into one of the most modern rice processing houses in India
with the largest 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.
The KKR Groups is now all set to become a name to reckon within
foods. The Groups has plan to set up a food park with facilities to process and
manufacture a wide range of food products like spices, pickles and other products for
world markets.
The factory of KKR mills is located in the green, pollution-free Okkal
Township, near Kochi in Kerala in South India. This facility is equipped with the
latest technology in the world for every aspect of processing of paddy-right from
destining, cleaning, drying, de-husking, bran-removal, polishing and finally sorting.
This infrastructure of around 25 crore of rupees is one of the largest in India.
KKR mills are the only rice mill in South India to use the Z- sortex
machine capable of optical inspection for quality control. This machine scans every
grain of rice and removes discolored, broken and immature rice, ensuring that only
rice that meets the specification calibrated in the computer is selected for packaging.
The result- beautiful rice of even size, color and bran that is a feast for the eyes and a
wholesome meal.
The brand Nirapara has now become the symbol of trust, quality and faith
in worldwide market. All the product range is widely appreciated for its attribute
purity, aroma and taste. The company that started as a small firm which used
traditional methods of rice manufacturing grew into a multimillion business by the
sheer hard work and long term vision of the founder.


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KKR Mills Pvt. Ltd is the first rice manufacturing unit to set up, and after few years
of full- fledged functioning, KKR Agro mills was set up in a place called
Chelamattom, which is nearby Kalady. Later KKR Group stepped on metal work and
realty business in partnership basis. But still KKR Groups had known mainly for the
food products alone. From food products alone, the company gains revenue of 140
crores per year and own a market share of 40%.

VISION MISSION AND VALUE OF THE COMPANY

Mission


The mission of the company is to deliver high quality food products that set
themselves apart from other in taste and value. Quality food products for modern
living

Vision


The K. K.R Groups of companies have a great vision of becoming a leader of
fast moving consumer goods and products. Its vision is to provide total customer
satisfaction through continuous improvement in production process and service.

Value of the company

High quality products
Customer orientation
Good relation between management, employees and workers.

Quality Standards

ISO 22000-2005 certification
ISO 9001-2008 certification
HACCP

OBJECTIVES OF THE COMPANY

The objectives of the company includes following:

Maintain quality of the products.

Profit maximization.

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Timely delivery of the products.

Consistency in sales and services through quality products.

Optimum utilization of resources for maximum outcomes.

Provide service to society through Janaseva.


PRODUCTION UNITS


There are production units for manufacturing the NIRAPARA products

Production unit Place Product Production per Work Force
month(tons)


KKR MILLS OKKAL

RICE 500 70

SN RICE OKKAL

RICE 750 90
MILLS

KARTHIKA KANJHOOR

RICE 250 60
MILLS

KKR FLOUR OKKAL

FLOUR 750 280
MILLS


KKR CHELAMATTOM RICE 1500 90
AGRO MILL

KKR FOOD

CHELAMATTOM PICKLES & 150 350
PRODUCTS CURRY
POWDERS

Table2.1 Production Unit
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ORGANISATION STRUCTURE






















Finance
officer
Production
Manager

Finance
Manager
Purchas
e
Manage
r
Marketin
g
Manager
Territory
Manager
HRD
Manage
r
Project
Manager
Lotus
rural
developm
ent
Society
Chairman
President
Vice chairman
General Manager
Purchase
Assistants
Store
keeper
Sales
Executive
Area Sales
Officer
Milling
Supervisor
Paddy
instructor
Maintenance
in charge Dept.
Officer
Sales
Officer
Cost
Accountan
t
Cash
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DEPARTMENTS


Introduction

The departments are the vital modules in an integrated system called organization. For
the case of monitoring and controlling the entire organization and its employees are
grouped under different departments. Proper co-ordination and communication among
various departments are necessary for the efficient functioning of an organization.
KKR Groups of companies includes six different factories which are monitored and
controlled by the central office located at Okkal.

The functional departments of KKR Groups of companies are:

PURCHASE DEPARTMENT

PRODUCTION DEPARTMENT

MARKETING DEPARTMENT

FINANCE DEPARTMENT

HUMAN RESOURCE DEPARTMENT

RESEARCH AND DEVELOPMENT DEPARTMENT

QUALITY CONTROL DEPARTMENT



























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PURCHASE DEPARTMENT





PURCHASE MANAGER



STORE KEEPERS PURCHASE ASSISTANT


HELPERS HELPERS


Fig: 4.1 Structure of Purchase dept.

The purchase department plays a very important role in an organization because
purchasing has its effect on very vital factor concerning the manufacture, quality,
cost, efficiency and prompt delivery of goods to customers. Its function is procure
material, supplies, services, machines and tools at the most important function of
material management as the moment an order is placed for the purchase of material;
a substantial part of the companys finance is committed which affect cash flow
position of the company. The purchase system is centralized in Nirapara.
Centralized purchase department means that all the purchase function are routed
through one department. This means all purchase should be made by the purchase
department to avoid duplication, overlapping and non-uniform procurements.
Purchasing is the most important function of material management. As the moment
an order is placed for the purchase of material, a substantial part of the companys
finance is committed which affect cash flow position of the company.
Purchase will be:
Seasonal purchase- It includes the purchase of paddy, lemon, chilly, turmeric etc.
purchase will be mainly from open market and also through agents. Paddy is mainly
purchased from Karnataka, Palakkad, Alappey, Tamil Nadu etc.
Daily purchase- It includes machines parts, office material and other material for the
day to day needs.
Responsibilities of the Key Personnel:

Purchase manager

Check whether there is continuous availability of raw materials.

Provide better control on purchasing power.

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Check the purchase requisition or indenting of raw materials.

Select suitable supplier based on terms and conditions.

Preparation of purchase order for the supply of stores.

Receiving and inspecting raw materials.

Checking and passing of bills of payment.

Store keeper


All manufacturing concerns appoint a person known as the store keeper. Chief store
keeper or store superintendent who is in charge of the store department and is
responsible for store control. The store keeper should have technical knowledge and
wide experience in store routine and ability of the operations of stores.

Receiving the stores correctly.

Entering all receipts regularly in the bin cards.

Keeping every item of stores in its allotted bins.

Ensuring that materials are issued only to those who present duly signed
requisition note.

Ensuring that the stocks do not exceeds the maximum level at any time.

Maintaining and supervising the duties of the different members of staff under
his charge.

Preventing unauthorized persons from entering into store.

Maintain store in an orderly and tidy manner so as to facilitate easy handling
and physical verification of stores and prevention of loss in storage.

Carrying out a regular review of the item of stores.

Locating slow moving and non-moving items so that steps may be taken for
their disposal before of they become obsolete.





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Objectives of purchase department

To make continuous availability of material so that there may be

uninterrupted flow of materials for production.

To make purchase competitively and wisely at the most economical prices.

To serve as an information center on the materials knowledge relating to

prices, source of supply, specific mode of delivery etc.

To make the purchase in reasonable quantities to keep investment in

materials at minimum.

To purchase proper quality of materials to have minimum possible

wastage of material and loss in production.

To develop good supplier relationship, this will ensure the best terms of
supply of materials.


Function of purchase department

What to purchase?

When to purchase?

Where to purchase?

How to purchase?

Paddy is collected from farmers on the basis of money and
quality since the production of paddy varies from seasons large amount of
paddy should be collected as per the requirements from where it get as
cheap and quality since competitors are high purchasing time of paddy
seems to be very important.
Procedure

1. Receive the purchase requisitions.

2. Exploring the source of supply and choosing the supplier.

3. Preparation and execution of purchase order.

4. Receiving and inspecting material.

5. Checking and passing of bills for payment.




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1. Purchase requisition

The purchase officer does not initiate any action for the purchase of
material on his own accord. With the help of the purchase requisition, the
purchase officer comes to know the types of material needed in the organization.
Purchase requisition is the form used as the formal request to the purchase
department to purchase raw materials. This form is prepared by the storekeeper
for the regular times. The requisition is approved by an executive, such as the
plant superintendent, or work manager. The purchase requisition is generally
prepared in triplicate. The original copy is sent to the purchase department. The
store keeper keeps the triplicate or the department which initiates the requisition
and triplicate is sent to the authorizing executives.

2. Exploring the source of supply and choosing the supplier.

Source of supply of raw materials are selected after the receipt of the
purchase requisition. The purchase department usually maintains every group of
materials, a list of suppliers name and address. Quotations are invited from these
suppliers by issuing tender to them. While selecting the supplier to whom orders
are to be given for the purchase of the material, the purchase department should
consider the following aspects:

Manufacturing capacities

Reliability of supplier

Price quoted

Terms of payment

Financial condition of the supplier

Terms of delivery

The management of the supplying firm

3. Purchasing order

After choosing the supplier, the purchase department prepares a purchase
order for supply of stories. The order is the written authorization to the supplier to
supply the particular material. It is the evidence of contract between the buyer and
the supplier that binds both the buyer and the supplier to the terms, which the
order is placed. If five copies are prepared, the possible use may be as follows:
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The original copy is sent to the supplier

One copy is sent to the receiving department

One copy is sent to the accounts department

One copy is sent to the person who initiated the purchase
requisition

4. Receiving and inspecting materials
In large concerns, a separate receipts and inspection department
independent of stocking location should be set up to receive and inspect raw
materials. But in small concerns, the work of receiving the goods may be
entrusted to the store keeper. On completion of the inspection, the goods receiving
clerks should enter the details of material received in store or goods received
notes. Five copies of the note should be prepared. The receiving department will
keep one copy and four copies along with the materials will be sent to the store
keeper. He will again check the quantity of material and compare it with the
quantity given in the note. The store keeper for his record will keep one copy and
others will send to the:

Purchase department

Accounts department

5. Checking and passing of bill for payment

When the invoice is received from the supplier, it will sent to the store
accounting section to check both the authenticity as well as arithmetical accuracy.
Check the quantity and price mentioned in the invoice and the purchase order
respectively. The arithmetical accuracy is also checked and verified.

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PRODUCTION DEPARTMENT




COPORATE OFFICE




PLANT MANAGER


OFFICE ELECTRICAL MECHANICAL BOILER

STAFF MAINTENANCE MAINTENANCE OPERATORS


DEPT. DEPT.



SUPERVISOR SUPERVISOR



PRODUCTION MANAGER



PADDY MILLING PARBOILING LABOUR

INSPECTION SUPERVISOR SUPERVISOR CONTRACTOR

SUPERVISOR





PACKING &


DESPACHING

PARBOILING



MILLING

SUPERVISOR 1 OPERATORS
LABOURS

OPERATORS








LABOURERS PACKING &

DESPACHING LABOURERS


SUPERVISOR 2






HELPERS

PRINTING




Fig: 4.2Structure of Production Dept.


Purchase department deals with the process of producing a product or services. That
means converting input into output. It includes physical commodities used to
manufacture the final product. The term production and manufacturing are using
interchangeably.
COPORATE OFFICE
22


The KKR Group of companies operates their production in three places.

1. Two rice mills and one flour mill is situated at Okkal.

2. One rice mill, curry powder and pickles division at Chelamattom.

3. One rice mill at Kanjhoor.

Functions of production department


Assure that purchased raw material is conforming to the purchase orders and
specification.

Establish point of inspection test at selected point in the production process.

Evaluate approve manufacturing equipment process and testing.

Perform inspection and test data and provide information on process and product
quality level.

Control the handling, preservation and packing of material and equipment from
receipt through shipment of the final product.










main rice varities


Sl. No. Name of the products
1 Single Matta rice
2 Rose Matta rice
3 Payasam rice
4 Ponni Rice
5 Idly Rice
6 Jyothi Rice
7 Jaya Rice
8 Cherumani Rice



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DESIGNATION RESPONSIBILITY
PLANT MANAGER Monitoring maintenance of plant
Administration
Coordinating of training
HACCP/ISO coordinator
Project & expansion work
Production planning & achieve targeted
production
Ensure proper operation & maintenance of
PRODUCTION MANAGER all machineries
Housekeeping in production area
HACCP/ISO coordinator
Final inspection of rice
Ensure proper bagging in time
PACKING AND DESPATCH Ensure proper storage
SECTION SUPERVISOR Ensure proper dispatch
Keep records
Paddy inspection
Go down housekeeping
PADDY SUPERVISOR Husk, bran empty gunnies loading &
unloading inspection
Paddy pre cleaning
Paddy par boiling
Process control
PAR BOILING SUPERVISOR Maintaining process sheet
Proper drying of paddy
Housekeeping of work place
PAR BOILING OPERATOR Operating pre cleaning section
Operating par boiling section
Operating drying section
Housekeeping of workplace
BOILER OPERATOR Operation of boiler and thermo fluid
Preventive maintenance
Housekeeping of work place
Maintaining of log book
MILLING SUPERVISOR Operating of milling unit
Process control
Breakdown maintenance
Maintaining process sheet
Housekeeping of work place
MECHANIC Plant maintenance
Plant expansion work
Maintaining records
Table 4.1 Responsibility of Production Dept
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MARKETING DEPARTMENT



























Fig.4.4 Structure of Marketing Dept



Marketing is the process by which companies determine what product or services
may be of interest to customers, and the strategy to use in sales, communication and
business development. It is an integrated process through which companies create
value for customers and build strong customer relationships in order to capture
value from customers in return . Marketing is used to identify the customer, to keep
the customer, and to satisfy the customer. With the customer as the focus of major
activities, it can be concluded that marketing management is one of the major
components of business management.











Chairman
Vice
Chairman
President
Co-
Coordinator
Production
anager
North Asst.
Production
Manager
South Asst.
Production
Manager
Sales
Executive
Sales
Executive
25

The ultimate purpose of production is the satisfaction of human wants. Production of
goods has no meaning unless they are distributed to customer. The goods should be
transferred to customer at a time when they need them. Thus marketing department
makes goods more useful to the society by getting them where they wanted and by
supplying them to those people who want them. The KKR Groups of companies
market a number of diversified ranges of products in the competitive market. The
marketing department works as a separate company within the business enterprise and
deals with all the sales and marketing related activities.

The main objective of marketing goods and services is to satisfy the customer and thus
to stay profitable. Marketing managers are often responsible for influencing the level,
timing and composition of customers demand in a manner that will achieve the
company objective.

In the business for the convenience of administration, the largest market i.e. the state is
divided into three zones namely, south, central and north zones.

SOUTH ZONE CENTRAL ZONE NORTH ZONE

Idukki Ernakulam Kannur

Kottayam Alappey Kasargod

Kollam Calicut

Pathanamthitta Trissur

Trivandrum Malapuram

Palakkad

Table 4.4 Marketing area















26

Responsibilities of key personnel

Sales and marketing managers

Give orders and instruction to sales executives
Conduct market analysis

Give the promotional techniques like advertisement, public relations,
direct selling.

Solve complaint of customers

Prepare detail of shops and quantity of sales.

Check whether there is any pending in product supply.

Sales and marketing executives

Collect order from different shops

Fix the drivers route for sales

Identify complaints of consumers

Give information about consumers and shop keepers

Inform about market, which has more and less sales

Prepare MSSR (monthly stock and sales report) to the manager.

Distribution channel

During the older days, there have been 1-2 distributors for a district. As
time went by in order to cope up with the demand, the company decided to fix a
distributor for each Panchayath (2008-09). Margin for distributors were fixed to be
10% of total sales. For pushing the sales, the company has assigned employees in the
shops. Separate schemes are allowed for the employees in the shop to enhance extra
sales. Distributors and sales executives reports to the manager daily. Sales executives
make a report called Monthly Stock and Sales Report (MSSR) and send to the
manager. It consists of detail of total sales happened in a month.
The varied products are supplied to all the retail outlets all over Kerala.
Direct marketing systems is followed to move the products from manufacturer to
retailer and then to customers. The company is also having a small outlet for the sales
of the products.

27


COMPANY



DISTRIBUTORS



WHOLESALERS/RETAILERS



CONSUMERS



Fig: 4.5 Distribution channel

The main dealers include the supermarkets, wholesale institutional buyers (the
catering people who run the hotel and restaurants), grocery shops, etc. the length of
the channel is one level channel which contains one selling intermediaries as retailer.
This is used by manufactures for marketing fashion merchandise. It requires knowing
the latest trends and taste of consumers.
Marketing process

Concentration

Under this process, products are collected together at a central point to facilitate
further action upon them. It is concerned with gathering, collecting and concern rating
raw materials, partly finished goods and finished products etc at central points. This
concentration to a certain extent embraces various other functions also such as
assembling, storage, financing, grading, standardization, risk taking etc.
Equalization

Equalization consists of adjustment of the supply to the demand on the basis of the
time and quality. This sort of adjustment can be done through storage and
transportation in market centers.

Dispersion

It refers to the allotment of raw materials to the producer and the final products to the
consumers in lots of small and big sizes suitable for their consumption
28

The Four Ps of Marketing

1. Product

2. Price

3. Place

4. Promotion

1. Product


The aim of KKR Group of companies is to produce all food products under the Brand
name of NIRAPARA that is needed for a family, so that they do not search for the
products of another brand for their needs, so they are aiming at introducing new and
needy products into the market. The new product which is to be launched is decided
by the chairman and then communicated to the lower level and from there he receives
the feedback. As the product might be introduced earlier by the competitor into the
market, the company does many researches and conducts many tests to make a
product of much better quality and at a fair price so that the product survives in the
market. After a product is developed it is given for evaluation proposes to the office
staff itself for using at their home and gets their feedback, and if the feedback is
positive they are kept for test marketing at their own shops which are situated at
Okkal and Kaloor and also free samples in sachets are provided in the shops and after
getting relevant feedbacks the product is officially launched for mass distribution.


2. Price

Fixing the price for a product is then the main task for an organization. The main
factor considering before pricing the product is the cost incurred for production and
the demand of the product. Pricing decisions are made on the cost of production
which includes the cost of raw materials and incidental charges. Pricing determines
success of business, consumers satisfaction and efficient allocation of resources in
economy. It is a major element in marketing mix. Price is an element in meeting
consumer needs.




29

Pricing Strategy

The price of a product is fixed after analyzing the current market situation and also
after getting feedback from test marketing. The most important factor which the
company takes into consideration is the competitors price. During the introduction
of the product the company adopts penetration pricing strategy, the company always
keeps the price of their product a bit lower than the price of their competitors and
after getting good market, they slowly but steadily increases the price of the product
up to the mark of the competitors price. For a new product the pricing strategies that
are applied the penetration and competitive pricing where as for a developed product
they apply a competitive as well as mark up pricing strategy.
The prices of the products which are for export as well as for interstate trade will be a
bit higher than the price of the products for local sale as they include transportation
cost as well as costs for additional packing materials.

3. Place

The KKR group of companies has a large number of distributors in Kerala, major
cities in India and abroad, UAE, Muscat, Bahrain, Oman, Qatar, Kuwait, USA,
Canada, UK, Switzerland, France, Australia, Singapore, New Zealand etc.
Considering the increasing demand they have plans to increase the number of
distributors.
The communication between the general manager, area sales manager, sales
representative and distributors through telephone and internet. The strength of the
distribution varies among different products accordingly for example, Nirapara
Puttupodi will have higher demand in Kerala but will not have the same demand in
the Northern states of India, they would prefer Flour to make chapathi and vice versa.
The place of promotion of product is thus selected by taking into account the nature,
needs and lifestyle of the consumers, but after all these are food products and will be
having nothing less than a moderate demand in every market.
The communication between the general manager, area sales manager, sales
representative and distributors through telephone and internet. The strength of the
distribution varies among different products accordingly for example, Nirapara
Puttupodi will have higher demand in Kerala but will not have the same demand in
the Northern states of India, they would prefer Flour to make chapathi and vice versa.
The place of promotion of product is thus selected by taking into account the nature,
needs and lifestyle of the consumers.
30

4. Promotion

It is the process of communication about the product to current and potential
customers in order to persuade them to buy the product. Promotional activities like
advertisement, trade or dealer promotion, increasing rate of commission to the
representative etc. are followed by the company; Nirapara gives offers to the dealers,
which will also benefit to the customers.
Advertisement

Advertising is the process through which the consumers are getting information about
the product. It persuades the consumers to buy the product. It increases the sales and
helps in creating a brand name and consumer loyalty.
Advertisement may be informative or competitive and product oriented or company
oriented. Informative advertisement gives information about the product, competitive
advertisement tries to put down competitors product. Similarly, the product oriented
focuses on a particular product alone, whereas the company oriented advertisement
focuses on the whole product of the company or the company as whole.
The KKR group of companies spent a large amount on advertisement which was
conducting every month in a year. The advertisement efforts can be channelized as
follows:

Wall painting

Boarding and board

TV/Radio/Newspapers/Magazines etc.

The KKR group of companies also advertises their product by conducting, in- shop
campaigns which means they select one particular outlet and promote all their
products at a special counter allotted for them. They also conduct exhibitions in
consumer trade fest.

The KKR group of companies has received following awards:


Best stall award. General category in all India industrial and agriculture
exhibition, Kottayam organized by SNDP Union, Kottayam and SITFO.

Best commercial stall award for food festival 2004, 9
th
Malabar Mahotsavam,
an annual tourism festival of Calicut presented by the district collector and

chairman of the organizing committee food festival Malabar Mahotsavam.

31


Market Segmentation

In case of consumer goods such as food products, market segmentation is not
necessary; all goods are sent to all places and are usable for all age groups so in the
view of the marketing department in the company market segmentation is not
necessary.
Packing

Packing of the product plays a vital role in attracting the customers towards a certain
product. The color, the shape, the size, the word art, and design on the package etc all
helps in attracting customers. Packing materials should be safe and hygiene, so very
much care is taken in determining the packing materials.

The packs in the company are designed by the marketing manager; different packing
materials are used for local, interstate and for export. The packing materials are tried
and tested and their quality is assured before using them.

The different packing materials are used in the company for packing their products are
: jute sacks for rice, plastic packs for flours, curry powders, masalas, spices, glass
bottles and plastic packs for pickles, plastic container for oils, plastic sack for packing
spices, curry powders etc for interstate trade, paper board packs and plastic belts for
packing products for export trade.

Target

The company decides upon the target of sales that is to be achieved in the current
financial year in the annual general meeting conducted in April. Last year the turnover
was 140 crore and for the current financial year the target is set to 160 crore.
Trade mark

Trade mark is the legal term when a brand name or brand mark is registered and
legalized, it becomes a trade mark. The trade mark of KKR Group of Company under
Nirapara.


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FINANCE DEPARTMENT







CHAIRMAN



VICE CHAIRMAN



GENERAL MANAGER



FINANCE MANAGER



COST CASHIER BANK
ACCOUNTANT SECTION


ACCOUNTANT ASSISTANT
CASHIER




Fig: 4.6 Structure of Finance Dept

Finance is the life blood of every business. Availability of sufficient funds at the
required time is the key of success of concern. As a matter of fact finance may be
said to be the circulatory system of economic body making possible
coordination between the different activities. The annual turnover of the company
rounds to 140 crores. The year of the firm dates from April 1
st
to 31
st
March.
The function of financial management is to make intensive and economic use of
capital resources of the organization. Since business firms are profit seeking
organization, there functions are to maximize the companys wealth. The primary
functions are:

1. Profit maximization

2. Maximization of returns
33

Other functions:

Obtaining finance

Internal audit

Cash management

Taxation

Management of accounting and control

Payment collection of all department

Preparation of financial report

Expense analysis

Determining the source of fund

Acquisition of funds

Funds management

Planning of resources

Effective use of resources

Controlling of resources

Banking relationship


Responsibility of finance manager

Cash arrangement in a schedule wise.

Maintain credit for distributors.

Immediate draft and cheque are provided as per the requirements.

Day to day company expense is maintained.

Yearly return, sales return, auditing.

ISO auditing will be made in every six months.













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Responsibilities of cost accountant


Ascertain the cost per unit of different product manufactured by a business
concern.

Provide a correct analysis of cost both by process or operations and by
different elements of cost.

Ascertain the profitability of each product and advice the management
regarding how profit can be maximized.

Helps in preparation of budget and implementation of budgetary control.

Advice management on future expansion of policies and proposed capital
project.

Guide management in the formulation and implementation of incentives,
bonus plan based on productivity and cost savings.

Organize the internal audit system to ensure effective working of different
department.

Organize the cost reduction program with the help of different department
managers.

Supply useful data to management for taking various financial decisions.

Helps in supervising the working of punched card accounting or data
processing through computers.

Exercise effective control of stock of materials, work-in-progress, consumable
stores and finished goods in order to maximize the capital locked up in these









35

QUALITY CONTROL DEPARTMENT



GENERAL MANAGER




QUALITY CONTROLLER




ASSISTANT

Fig 4.7 Structure of Quality Control Dept.

Improving quality is one important way to maintain a competitive position in todays
markets. Quality can be promoted to customers and employees. Consumers want
quality products and services and employees at all levels in the organization like to be
associated with a winner. Most people associate high quality with a winning
competitive position.
When quality is emphasized and subsequently improved, waste is decreased or
eliminated. Operational cost is reduced. At the same time, the customer receives
products and services, there by stimulating an increase in the firms market share.
Nirapara is quality conscious organization, which gives importance to manufacturing
of qualitative agro products. The company started its venture with traditional method
of boiling, sun drying and milling. But now have grown into one of the most modern
rice processing houses in India with the latest world-class technology.
KKR Group has the strategy of good food for good health and quality food
products for modern living
The company professionals resort to an extensive range of testing parameters to
ensure the supply of pure, natural and nutritive agricultural products. Nirapara also
conduct strict quality checks on the following quality parameters that are regularly
validated to keep pace with the contemporary trend and custom in the domain. The
quality analysts conduct experiments to evaluate quality standard of each product on
the following parameters.

Edible quality

Hygiene

Nutritive value

36

KKR mill is only rice mill in South India to use the Z-sortex machine capable of
optical inspection for quality control. This machine scans every grain of rice and
removes discolored, broken and immature rice, ensuring that only rice that meets the
specification calibrated in the computer is selected for packaging. The result is
beautiful rice of even size, color and brand that is a feast for the eyes and a
wholesome meal.
The pickles division of KKR Group is using high sensitive metal detectors before the
sealing is done. This also ensures the quality of the products. The KKR Group of
company is aware of their commitment to the society. A healthy environment is
essential for substantial development. The companys procedures are eco-friendly.
The quality section is headed by a quality controller. He has assistants to assist him in
quality checking.
Responsibilities of quality controller

Quality checking

Supervision of HACCP activities and training

ISO coordinator
The quality controller gives suggestions regarding quality measure to be undertaken
and he is also responsible for monitoring periodic inspection in the company.

Certification

ISO 22000-2005 certification

ISO 9001-2000 certification

HACCP certification (Hazard Analysis Critical Control Point ISO
22000:2005)
37

QUALITY PROCEDURE- RICE

Storage

Rice should be stored in a clean weather proof container.

Rice should be stored separately according to their varieties.

Rice should be taken for processing before the storage time expires.

Loading

Always take single variety

Mixing should be done only in recommended proportions.

Only single variety should be take for boiling at 100%.

Pre- cleaning

Machine should be cleaned after each shift

According to different variety, desired changes in setting should be done in the
machine.

Paddy Loading Bins

Always utilize the full capacity

Hot Water Soaking

Temperature should be 100 degrees always

Do not pump water below this temperature





38

Par Boiling Tank

Keep the tank cleaned in every batches

Use the tank to maximum capacity

Always check the water temperature

Do not steam

Soaking

Always use appropriate paddy soaking time(normally 5 hours)

Water Drainage

Always drain water away after soaking period

Steaming

Always steam at the right temperature

Discharge to Drier

It should be an immediate discharge, do not hold material in the steamer.

Milling

Ensure the type of paddy in the intake bin

Check the moisture level

Ensure the proper cleaning of bins takes place during the process change

Flow Balancer

Always keep the equipment clean

Periodic weight calibration should be done

Do not alter the settings











39


Mill Cleaning

Always clean the spout magnets in shifts

Adjust aspiration settings with respect to paddy

Take sample from outlets to ensure less product loss and make changes if
necessary

Clean MTRA series in each shift

Check destroyer stone separation outlets with respect of changes in paddy

Proper disposal of cleaned by products and impurities from mill should be
done.

Hulling

Hulling efficiency should be checked regularly

Leave 5-10% of paddy along with hulled and set roll portion accordingly

Clean spout magnets periodically

Always run the set capacity of machine

Hull Separation

Ensure that proper pressure is set

Adjust germs outlet properly

Paddy Separator

Periodic cleaning

Change the machine settings in respect to the variety of paddy

Takes sample during the operation of the machine and analyze whether change
in operation is needed.

Thickness Grader

It should be cleaned weekly

Make sure that immature grain removal is effective





40

Abrasive Whitening

Series of passing of rice should be set in due respect to color of rice

Efficiency of whitener should be checked twice a shift

Grading

Ensure proper grading is done, take samples from outlets for analyzing

Clean cylinder with air and water and remove bran deposition periodically

Polishing

Keep machine clean during every shift

Red rice should be polished in parallel proportions

Efficiency should be checked periodically

Operators should be familiar with demands of products and settings

Color Sorting

Keep the machine cleaned always

Analyze the samples periodically

Always follow the settings which are prescribed and authorized personnel
should only operate the machine.



























41



RESEARCH AND DEVELOPMENT

DEPARTMENT






R & D DEPARTMENT



MICRO BIOLOGIST



CHEMIST



LAB ASSISTANT

Fig: 4.8 Structure of Research and Development Dept.


In KKR Group of companies research is mainly conducted in the field of production.
The department consists of Lab assistant, chemist and microbiologist. It deals with
development of a new product and quality inspection etc. the R & D department of
KKR Group is situated at the Chelamattom unit.

Specific areas

Raw material standardization

Development of new products
Increasing quality of products

Development of new products

Continuation of new products development

Standardization of quality parameters of existing range of product.




42

HUMAN RESOURCE DEPARTMENT



HR MANAGER




ALL DEPARTMENT ASST. HR MANAGER
HEADS


HR EXECUTIVES


RECEPTIONIST


SECURITY, HELPERS&
WORKERS


Fig: 4.9 Structure of Human Resource Dept.


Human resources department is one of the most complex and challenging fields of an
organization. It is considered to be the most expensive and important resources of
every organization. In simple terms, an organizations human resources management
strategy should maximize return on investment in the organizations human capital
and minimize the financial risk. Human resource managers seek to achieve this by
aligning the supply of skilled and qualified individuals and the capabilities of the
current work force, with the organizations ongoing and future business plans and
requirements to maximize return on investment and secure future survival and
success.
In ensuring such objectives are achieved, the human resource function is to implement
an organizations human requirements effectively, taking into account federal, state
and local labor laws and regulations; ethical business practices; and net cost, in a
manner that maximize, as far as possible, employee motivation, commitment and
productivity.



43

The functions of personnel department

1. Pre recruitment process

a) Receipt of requirement of manpower from various department heads.

b) Scrutinize them and get approval from concerned authorities if the post
is new.

c) Prepare a recruitment budget and get approval.

d) Select the appropriate recruitment process.

2. Recruitment process

a) Prepare advertisement etc for the recruitment.

b) Scrutinize and shortlist the applications received.

c) Sent interview call letters and emails as required.

d) Conduct interviews through panels.

e) Preparation of offer letters as required.

3. Joining formalities

a) Administrating joining formalities.

b) Pre employment reference check.

c) Preparation of appointment advice and intimating the same to other
departments.

d) Preparing and entering new hire paper work.

4. Employee database

a) Keeping track of Knowledge Management Software.

b) Maintenance of Human Resource Information System.

5. ISO Compliance

a) Ensuring all the updating of the ISO documentation and HR formats.

b) Facing the internal and external audits, accountable to enforce the
correctional actions.

6. Statutory Compliance

a) Handling PF and ESI formalities and coordinating with other
departments.

b) Handling Apprentice Training, Submitting Periodic Returns to Board.

c) Submitting other returns to the labor departments as per Shops and

Establishments Act.



44


7. Training and development

a) Conducting induction training for new hires.

b) Training needs analysis based on skill gap analysis, appraisal feedback
and suggestions.

c) Coordinating internal and external training programs.

d) Maintaining training records.

e) Analysis of training feedback.

8. Performance appraisal

a) Prepare a new appraisal form.

b) Educate employees about self appraisal.

c) Prepare appraisal letters.

9. Employee relation

a) Having formal and informal counseling with employees.

b) Processing required letters on employees request.

10. Report generation

a) Generating and analyzing employee attrition reports, training
evaluation and manpower status.

b) Weekly and monthly recruitment reports.

c) Report generation of pre appraisal, appraisal and post appraisal.

d) Salary detail reports to accounts department.

11. Exit formalities

a) Administrating exit paperwork including all statutory requirements.

b) Conducting exit interview

c) Prepare exit interview summary

d) Giving post employment reference for relieved employees.

12. Remuneration

13. Quality control monitoring

One of the peculiarity of Nirapara group is the legal issue are also carried out by
the Human Resources Manager.









45



Recruitment and selection

Recruitment is mainly done through advertisements in the news paper, reference from
employees and also from consultancies. Thus a short list of applicants is made, and
the company calls for a general interview. The preliminary interview is conducted by
the HR manager and if satisfied, a second round interview is conducted by the
chairman and vice chairman of the company. If they are satisfied appointment is
made. The HR manager gives the general introduction about the company. During the
probation period the performance of the candidate will assessed. If the performance is
satisfactory he/she will appointed as the permanent employee. Loading and unloading
employees are mainly hired from Orissa and Bihar through Registered Labor Agents.
Management workers relationship

The management having a view that the success of the company depends very much
on the healthy relationship between the management and staff, the secret of the
success of any depends upon that. The management encouragement encourages
employee participation in the overall activities of the company. The management of
KKR groups has a good relationship with the workers, so there is no trade union in
the company.
Employee welfare activities

Welfare includes anything that is done for the comfort and improvement of
employees and is provided over and above wages. Welfare helps in keeping the
morale and motivation of the employees high so as to retain the employees for longer
duration. The welfare measure may not be in monetary terms only but in any kind or
form. Employees welfare activities in KKR Groups of companies are:

Accident insurance

Lodging facility

Transportation facility

Canteen facility






46

Wages and salary administration

Salary of the office staff consist of basic pay and HRA, salary increment is made on
performance basis. For marketing staff, a certain percentage of the sales turnover is
given as commission. The workers are paid according to scale. It consists of basic
pay, fixed DA and variable DA. They also provide provident fund, contribution
towards bonus and gratuity. The workers are also providing with ESI benefits.
Shift system

General shift : 9:00 AM to 5:00 PM
Production shift : 8:00 AM to 4:00 PM
4:00 PM to 12:00 AM
12:00 AM to 8:00 AM
Attendance system

Biometric attendance machine for office staff

Normal attendance register for workers

Promotion

The employees are promoted on the basis of performance appraisal, seniority and
qualification.
Leaves

1. Casual leave

2. Sick leave

3. Earned leave

Training and development

Training and development is a subsystem of an organization. It ensures that
randomness is reduced and learning or behavioral change takes place in structured
format. Sales training is conducted once in 3 months for the representatives and
executives. Training will be conducted by trainers from the outside Centres. Freshers
who are having technical knowledge will be given on the job training. Job rotation is
given to workers for developing their skill in different areas.


47

Performance appraisal

People differ in their abilities and their aptitudes. There is always some difference
between the quantity and quality of the same work on the same job being done by two
different people. Performance appraisals of employees are necessary to understand
each employees abilities, competencies and relative merit and worth for the
organization. Performance appraisal rates the employees in terms of their
performance. The most common Performance Appraisal method is Rating Method.
Appraisal Report is forwarded to the HR manager by each department Head. The
employees are given salary increment on the basis of the performance.





























48


SWOT ANALYSIS

The main aim of doing the SWOT analysis is to find out the efficiency and the
effectiveness of the organization. It refers to the strengths, weakness, opportunity and
threats.

STRENGTHS

ISO & HACCP certified company
Goodwill of the company
High quality products
No trade unions
Product diversification
Employees are efficient and also are dedicated to the company
Modern technologies and machines are used for production


WEAKNESS

Lack of automation
Over stocking of raw materials
High production cost
Not having a proper infrastructure



















49

OPPORTUNITY

Availability of cheap labour
FMCGs are gaining demand in market share
Variety areas in instant food production
Expansion of company


THREATS

Tough competition
Non-availability of raw materials
Extinction of paddy cultivation in Kerala
Changing food habits
Unfavorable government rules and policies
Fluctuation in price of raw materials


















50


MANAGERIAL SKILLS ACQIIRED
Human or Interpersonal Managerial Skills
One of the most important management tasks is to work with people. Without people,
there will not be a need for existence of management and managers.
How to behave to the workers and the different ways a manager takes for the
workability of the employees and the managerial-worksman relationships.
How to maintain co-ordination between the employees and the different methods to
take a sudden action if any problems accured between the different authorities of the
government.
These skills will enable managers to become leaders, to motivate employees for better
accomplishments, to make more effective use of human potential in the company and
so on. Simply, they are the most important skills that I have learned.


















51



SUMMARY AND CONCLUSION


The brand name NIRAPARA has now become the symbol of trust, quality and faith
in the worldwide market. All products are widely appreciated for its attributes purity,
aroma and taste. Also the future of the firm lies in tapping the opportunities in the
global market.

The company is trying its level best to maintain the consistency in quality and
services due to stiff competition and high tax evasion in the market. The organization
study helped to know the departmental details and its functions. Effective and
efficient steps shall be taken to achieve and maintain good reputation to the
organization.

The activities of plant and all other departments are functioning at the
impressive standards for achieving the organizational objectives. The commitment
and efficiency of the employee helped NIRAPARA in capturing highly competitive
market. Product diversification enables the organization to get a prominent place
among the corporate entities. Sales turnover can be enhanced with the help of
providing more commission to the retailers and damage allowances, van allowances,
credit facility etc. to distributors.














52

BIBLIOGRAPHY


Book resources


1. T.N Chhabra , Human Resource Management 7
th
Edition 2005 Copyright
Dhanpat Rai & Co
2. Published document of the company

Web Resources

www.nirapara.com

www.ehow.com


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