SMALL SCALE SECTOR IN INDIA

The phenomenon growth of industries in the small scale industrial sector has been stinking feature in the economic development of the country since independence. It has been contributed to overall growth or the gross domestic product as well as in terms of employment generation and export. one of the measure of the policy supporting for promoting small scale industries is the policy of reservation of economically viable and technically feasible items for exclusive manufacture in the small scale sector. The policy of reservation initiated in 1967 primarily as promotional and protective measure vis--vis the large scale.

SSI sector in India creates largest employment opportunities for the Indian population, next only to agriculture. It has been estimated that a lakh rupee of investment in fixed asset in small scale sector generates employment for four persons. According to the SSI sector survey conducted by the ministry and national information centre with the base year of 1987-88 the following interesting observation were made related to the employment in the small scale sector.

Food products industry has ranked first in generating employment, providing employment to 4.82 lakh persons (13.1%).The next two industry groups were No-metallic mineral products with 3.73 lakh persons(12.2%) and metal products with 3.73 lakh persons(12.2%) and metal products with 3.73 lakh person (10.2%) .In chemical &chemical products, machinery parts and expects electronically parts. Wood products basic and rubber & plastic products. The contribution ranged from 9%to 5%, the total contribution by these eight industries group being 49%. In all other industries the contribution was less than 5%.

Rural

Non metallic products contributed 22.7% to employment generated in rural areas. Food products accounted for 12.1%wood products and chemical products shared between them 17.5%

Urban

As for urban areas, food products and metal products almost equally shared 22.8% of employment.Machenery and parts except electrical, on metallic mineral products and chemical products between them accounted for 26.2% of employment in metropolitan areas the leading industries were metal products machinery and parts except electrical and paper products &printing (total share being 33.6%)

State wise employment distribution

Tamilnadu (14.5%) made the maximum contribution to employment .This was followed by Maharashtra (9.7%), utterpradesh and west Bengal (8.5%) the total share being 27.7% .Gujarat(7.6%) ,andrapradesh(7.5%) Karnataka (6.7%) and Punjab (5.6%) together accounted for another 27.4%per unit employment was high 17 16 14 respectively .in Nagaland, Sikkim and dadra &nagarhaveli .it was around the average of 6.

Production

The small scale industries sector plays a vital role for the growth of the country. It contributes 40% of the gross manufacture to the Indian economy. It has been estimated that a lakh rupee of investment in fixed assets in the small scale sector has grown rapidly over the year. The growth rates during the various plan periods have been very impressive. The number of scales has increased from an estimated 8.74 lakh units in the year 1980-81 to an estimated 31.21 lakh in the years 1999.

From the year 1990-91 this sector has exhibited a comparatively lower growth trend .Which continued during the next two year

however this has to be viewed in the background of the general recession in the economy? The transaction period of the process of economy reforms was also affected for some period by adverse factor such as foreign exchange constrains.

Export Contribution

SSI sector plays a major role in India present export performance .SSI sector is contribution 45-50 of total export. Direct export from the SSI sector account for nearly 3505 of total export. The number of small scale units that undertake direct export. The number of small scale units that undertake direct export would be more than 5000.

Besides direct export, it is estimated that small-scale industries unit contribute around 15% to export indirectly. This takes place through merchant export, trading house and export house. This may be also be in the form of Experts order from large units or the production of parts and components for use for finished exportable goods. It would surprise many to know that nontraditional products account for more than 95% of SSI exports.

The exports from SSI have been clocking excellence growth rates in this decade. It has been mostly fuelled by the performance of garments, leather and games and jewelers unit from this sector.

Economic indicators

The small scale industry today constitutes a very important segment of the Indian economy. The development of this sector came about preliminary due to the vision of our Prime Minister Jawaharlal Nehru who sought to develop core industry and have a supporting sector in the form of small scale has emerged as a dynamic and vibrant sector of the economy. Today it accounts for nearly 35% of the gross value of the output in the manufactory sector. And over 40% of the total Export from the country. In terms of value added this sector accounts for about 40% of the value added in the manufacturing sector .The sectors contribution to the employment is next only to agriculture in India

Indian Food processing Industry

Indian products above 200 million tons of food grains every year. All major grains paddy, wheat, maize, barley millet, like jower,bajra&ragi are produced in the country. The country is self sufficient in grains production and is the second largest rice producer in the world, with a 20% share. The food processing industry sector in India is one of the largest in terms of production, consumption, exports, and growth prospects. The government has accordingly it a high priority. With a number of fiscal relief and incentives to encourage commercialization and value addition to agriculture produce, for minimizing pre-post harvest wastage, generating employment and exports growth, important sub sector in food processing industries are:-fruit &vegetable processing, fish processing, milk processing, meat &poultry processing, packaged convenience food alcoholic beverages soft drinks and grains processing etc As a result of several policy initiatives undertaken since liberalization in august 1991, the industry has witnessed fast growth in most of segments. As per a recent study on food processing sector, the turnover of total food markets is approximately Rs: 250000 cores out of which value added food products comprise Rs: 80000 cores Since liberalization in august 91- and till Feb. 2000 proposals for projects of over RS: 53800 cores have been proposed in various segments of the food and agro-processing industry. Besides this, govt has also approved proposals for joint venture, foreign collaboration,

industrial license and 100%exports oriented units envisaging an investment of RS: 19100 cores during the same period. Out of this foreign investment is over RS: 9100 cores

Processed food exports were at over RS: 13500 cores in 1998-99.Out of these exports rice accounted for 46% where as marine products accounted for over 34%

Primary food processing is a major industry with lakh of rice mill/hullers, flourmills, pulse mills and oil seed mill. Hera are several thousand of bakeries traditional food units and fruit/veg/spice processing unit in unorganized sector ,there are over 820 flourmills,418 fish processing units,5198 fruit/veg processing units 171 meat processing units.

India is the world second largest producers of fruits &vegetables, but hardly 2% of produce is processed. India is the land of spices producing all varieties worth over RS: 3500 cores amounting to 25-30% of worlds production, which is processed for value-add ion and export. It grows 22 million tons of oil seeds covering most of varities.Other important plantation products include tea, coffee, cocoa, and cashew. It has large marine products and processing potential with varied fish resource along the 8041 k.m

Features of Indian food processing sector

1. It is the seventh largest country with extensive administrative structure and independent judiciary sound financial&infractural network and above all a stable and thriving democracy. 2. Due to its diverse agro-climatic condition it has wide ranging and large raw material base suitable for food processing industries. presently a very small percentage of these processed into value added products. 3. It is one of the biggest emerging markets, with over 900 million population and a 250 million strong middle class. 4. Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and changed in demand pattern, ending to tremendously new opportunities for exploiting the large latent market. An average Indian spends 50%of household expenditure on food items.

5. Indias comparatively cheaper workforce can be effectly utilized to setup large low cost production basis for domestic and export markets

Company profile

Nature and history In 1970 Rani food products was started as a proprietorship concern with a capital of RS:750/-,during the factory was located at Thazhangadi,vadakara.The total number of employees including office during 1970 was just 20 and he main production was chili powder and for the production process a powdering machine was used. From the production of chili powder, Rani Food Products grew gradually. Few year later Rani acquire few across land at chorode.3 km away from the heart of vadakara town established their factory at chorode.in 1980 rani was converted into partnership firm with a total number of three partners. Now it is one of the most profitable concern in india.State bank o India finance the firm Rani products are marketed iside india as exported to many foreign countries of middle east Europe,usa,of the total production 10% exported and rest 90% are consumed domestically.

Rani products have been approved by Spice house certified ISI 9000 certified by I SO UK Indian spices logo issued by the spices board India

At present 100 staff are working in Rani Food Products of which majority are females that is 16 sales man,12 clerks,40 workers,5 computer staff 7 helpers,10 chemist and 10 drivers. For the welfare of the employees a canteen is being functioned in the factory compound which provides food at subsidize rate, the normal working hours in rani is from 8 am-5pm in between they are giving 1 hour lunch break. All employees other than trainees are given leave according to Factories act 1948. Every staff in packing section are given salary on monthly basis. Employees in packing section are paid as per price rate system. Sales persons are given travelling allowances. Retirement ages of employees is at the age of 58 and are given retirement benefits including E.S.I gratuity, PF etc

Product Profile

Rani Food Products manufactures different type of products. It includes spice powder, pickle, curry powder, and whole spice and other items. The rains concentrate in variety of products. They are tasty and high quality.

They have tried to provide an ethnic taste to their products to give customer the feeling of homemade masala. They do not add any essence to their products.

They have come up with a range of masala which is added to some dishes, imaret the original flavor expected. Hence breaking the regional barriers in cooking them culinary arts across the nation into one. Their product taste and quality had created a special place in the heart of the people.

Product Details

Spices Chili powder Coriander powder Turmeric powder Dry ginger powder Black pepper powder

Curry Powder Chicken Masala Meat Masala Chicken fry masala Tandoori chicken masala Channa masala Biriyani masala Vegetable masala Samber masala Fish masala Rasam POWDER Garam masala

Whole Spices

Chilly Coriander Turmeric Mustard Fenugreek Cumin Dry ginger Cloves

Veg pickles & Non veg pickles

Lime Mango Tender mango Garlic Ginger Mixed vegetables Ginger chutney Prawns Mussels Fish

Other items Coffee POWDER Idly powder Compounded Asafetida powder Atta Rice powder

Marketing Department

Marketing Manager

Supervisor

Sales Representative

Sales man

Drivers

The head of the marketing department of Rani Food Products is marketing manager. Sales executive and sales man comes under the marketing manager. The company moves its product through direct selling and distribution. In the local area, company provides direct marketing and other areas the distributor will supply the product

The marketing department collets the customer related information through sales executives and retailers. The marketing departments organize various promotional activities to increase sales. The company gives a special attention to its activities. The company is spending more on promotional activities like advertisement and sales promotion The various Medias used for advertisement include magazines, newspaper, and electronic media. The company seeks various advertisement agencies for designed and planning its advertisement The company undertakes various sales promotional Scheme with the various objects at three levels.

1. Dealer level 2. Consumer level 3. Sales mans level it helps to increase companys sales volume

Distribution Channel Distribution of product is done through following methods; 1. Direct distribution 2. Through agent representatives

Direct distribution is made to those dealers who places order before the company and direct distribution is done through the company on vehicle. The company gets order from dealers all over the country. The main function of department is canvassing order and distribution of goods. Advertisement is the important medium of canvassing. Advertisement is done through Banners Stickers Board display Posters News paper Magazines

These medium help to boost business in local market and at home market. As far as foreign market is concerned participation in international exhibition, fairs etc.help to boost sales.

Various Departments

The various departments in Rani Food Products are:

1) 2) 3) 4) 5)

MARKETING DEPARTMENT HUMANRESOURCE DEPARTMENT FINANC DEPARTMENT PRODUCTION DEPARTMENT PURCHASE DEPARTMENT

Organizational structure

Ownership pattern Rani Food Products is an organization owned by a partnership system. Mr.vivek who is well experienced in this field of manufacture, distribution and exporting of food items for the past 20 years he is the manager of this firm

Management Pattern A rani food product is an organization which is managed by a family. The company has its own conventional method of operation. These method and technique have been followed by the family members, right from the ideas that the organization must perform certain functions to carry out its operation

Style The management style of rani is semi Paricipative Company formulates its objectives by discussing with the staff. Employees are getting chances to represent themselves in the meeting. The service and wage policies and decision are finalizing by considering the opinions of trade union also.

Machinery Company always up to date to the latest technology, they have installed much modern equipments and driers which ensure high productivity and hygiene.

Quality policy Quality of the product is the key element taken into consideration by the company so the company gives incentive care and trust on quality of their product. All the raw material is selected and purchased by the top level management itself. Each batch is being tested in the lab

BIBLIOGRAPHY Companies journals and magazines www.rani foodproducts.com B Narayan, strategic management

SUGGESTIONS

I.

II. III. IV. V.

An advertisement plays a major role in making decisions of buying the product especially TV advertisement. So they must introduce more advertisement in TV, if possible more pop Display, advertisement in newspaper and magazines etc. so that people may know about the product more widely Sales promotion activities attract the consumer. So rani powder must introduce price offer, and free gifts A company should create a brand ambassador and make the brand popular Company should improve the packing of the products A good financial policy should be adopted so the firm can function smoothly

FINDINGS

1) Ranis products ensure that consumer receive quality. Reliability and integrity in the products and services. The system call for strict adherence of specifications and quality requirement 2) Their service quality covers all aspects of customer transactions 3) Rani products also give importance to environmental protection 4) They are exporting the product from all parts of country and abroad 5) The company is in sound financial position 6) Labor absentees of the company is very high

SWOT ANALYSIS

SWOT ANALYSIS It has been defined as a conceptual frame work for a systematic analysis that facilitates matching the external threats and opportunities with the internal weakness and strength of the organization. Why Swot? It is a tool for auditing in an organization and its environment. It is the first stage of planning and helps marketers to focus on key issue. Once key issue have been identified, they feed into marketing objectives it can be issued in conjunction with other tools for audit and analysis It is very popular tool, quick and easy learns. Swot analysis stands for Strength, Weakness, Opportunities and Threat.

STRENGTH Brand loyalty among customers Most modern technology Best quality at affordable price Eco friendly Sound financial position

WEAKNESS Insufficient production capacity Power failure Short supply of raw material High production cost Poor supply chain management

OPPERTUNITIES New market in sub urban areas Increased consumer demand Foreign markets Increased population

THREATS Labor problem Cost of production Very high competition Government policies Declining profit marginContinious increase in the price of raw material

VISION Rani will be responsive to customer requirement consonant with its competitive and profitability. Rani will provide its customer satisfaction by giving customers right product at the right price at the right time. Rani will have profitable operations overseas.Rani believes in the important of the process. People and project will be evaluated in the result and the process adopted

MISSION Reach the level of market by attaining maximum number of prospective customers through inspiring them by the old age tradition of food habits and tasty proportion in handed over from generations.

OBJECTIVES OF THE COMPANY To ensure fair dealing to customer To provide employment opportunities To make good available to customer at the right time

PURCHASE DEPARTMENT

Purchase manager

Purchase executives

Worker &Store keeper

Purchasing manger major role in the organization is to purchase the goods. He has to select the goods of high quality. Rani purchase raw material mainly from Tamilnadu, Madhyapradesh, Rajasthan and Andrapradesh. The purchasing department purchase raw material and subsequent entries are made in the purchase department. The top person in the purchase department is purchase manager. He is responsible for the delivery and shortage of raw material; semi finished goods and finished goods.

Functions of Purchase Department When production department gets order from the marketing department production department informs the purchase department. The purchase department sends the required qualities of material for production. Then the finished goods are also stored in the purchase department. They are issued to marketing department as and when required.

FINANCIAL HIGHLIGHTS

Year 2002-03 2004-05 2006-07

Profits(lakhs) 11.9 13.85 15.75

2008-09 2010-11

16.11 18

It can be seen from the table that the profit figure of the company have an increase from 2002-2012 The company follows double entry book keeping system and the company. System is fully Computrised.The Company keeps the following books of accounts 1. Journal 2. Ledger 3. Cashbook

Only transactions are entered and posting, balancing etc are done by the computer The functions of financial department Managing cash flow Keeping records Payment of salaries and other expenses Keeping sufficient cash to meet the emergencies in furniture Arranging the finance at the time of need Loans raised from financial institutions

Capital Structure The capital structure of the company proprietors fund and bank loans. Sixty percent of the financial requirement is met by taking loans from S.B.T, vadakara.The rest 40% is met through properties own fund. The last year audit report shows that the company earned a turnover of 3 crores per annum.The profit at 6% of three crores.

FINANCE DEPARTMENT

General manager

Personnel manager

Office manager

Finance is the important thing in the business. Day by day cash flow in to and out of the business. There should be synchronization between inflow and out flow. Rani cash management is done in financial department. Financial department is headed by finance manger. His finance manger manges the cash flows; keeps the cash in future, arranging the finance at the time of need etc.Finance manger gives financial advice to the firm when needed and also helps in computing the remittance of levy.

PRODUCTION DEPARTMENT

Production manager

Quality control

Supervisor

Worker

The major raw materials used in rani are chilly, turmeric, pepper, cardamom, ginger, coriander, garlic etc.The procurement of raw material is mainly from Tamil nadu, Andrapradesh, Utterpradesh, Madhyapradesh, Rajestan.The goods which are converted in to finished products is done at the factory under the supervision of production manager, There are 4 types of machines which are used in the factory for the production which include; 1. Powdering machine: This machine is used to powder the raw material in the finished goo 2. Cleaning machine: This is used for the removal of dust and sand from the raw material

3. Packing machine: This machine is used for the packing of finished product in appropriate packets 4. Sealing machine: After the packing function is over packets are sealing machine.

Raw material level Through pre-cleaning and inspection is done before any rawmaterial is passed on to production. Inspection for microbial condemnation, pesticide and fertilizer residues is done in a sophisticated lab of international standard.

In-process Hygiene Periodic standard cleaning procedures for boiler, dusts, and vessels are done under expert supervision. Personnel hygiene of the worker is ensured by anticipated dips at entry and exit. Work clothes are cleaned and sterilized in a state of the art facility. Head wear and mouth piece prevent contamination by hair microbes during work hours. Other functions of production department are receipt, physical verification and issue of raw material, inventory control disposal of scrap

Quality Control The groups intention to go led to the establishment of quality control lab for the dual purpose of ensuring high quality and adding further value to existing range of products. Rani come to the consumer market only after rigorous quality check strictly adhering to the guiding principle into the market only after rigorous quality check strictly adhering principle on quality standard.

CONCLUSION

A rani food product is a small scale industrial unit. Which possess a vital role in the commercial map of vadakara.This is an organization that grows in slowly steady manner. It makes greater contribution to the society and economy through different ways. Now days the organization slowly moving to the product diversification and plan modernization for making better performance in the coming days. So through the efficient management and dedicated direction the companies can achieve greater things to capture the horizons of success with a shot span of time

HUMAN RESOURCE DEPARTMENT

General Manager

Personnel manager

Office staff

Experience as well qualified employees are the greatest strength of rani .The employees are continuously trained constantly to update with the knowledge base to keep abreast with the changing business environment. The personnel manager handles with the office staff in personnel department who is under the general manger. He is studying in each employee. I can understand that all employees are satisfied with the operational of personnel department. A pool of experience and qualified employees is the strength of rani.These employees are trained continuously.

The personnel manger handles with various functions in personnel department. The personnel manger under the control of general manager. The personnel mangers also assist different office staff. He also thoroughly studies and understands each and every employee and initiates them in achieving organization goals. About 96 staff are working in the company and majority of the staff include female staff that is 15 sales men 10 clerks 40 workers 5 computer staff 7 helpers 9 chemists 10 drivers The time shifting is helping the employees. The shifting time gives more relaxation and refreshment to the employees Rani Working Hours Is From 8 am 5pm Personnel manger takes decision regarding recruitment, training, and selectionand promotion. RECRUITMENT Recruitment is the proposing job where organization make search for prospective employes.Source of recruitment are divided into internal and external

Source of recruitment Advertisement in news paper Employment exchange Educational institution Labor contractors In rani recruitment of employees is done directly by the company. Interview is carried out for selecting efficient candidate TRAINING Training is the process of increasing the knowledge an skill for doing particular job. It is unorganized by which people learn knowledge and skill for define purpose. The main purpose of training is to bridge the gap between job recruitment and present competence of an employee. Training is job oriented and it is impacted at workplace. Training is impacted for shot period and it gives quick and apparent result. Rani provides training to its employees every 90 days PERFOMANCE APPRAISEL Perfomance appraisel is the process of evaluating personnel job performance and his potential for development. It is an important rating of employees excellence .In rani product performance appraisal is take place in every year. It helps to improve the job performance of the employees.

PROMOTION A promotion takes place when an employees moves to a position highest than the one previously occupied .The responsibility. Status and pay also increase when as a result of promotion. Hera is no increase when as a result of promotion. There is no increase in the employees pay it is called day promotion In rani the recruitment is done mostly through promotion. Here promotion is done mainly on the basis of the performance of the employees. Some other factors considered for the promotion and absenteeism, honesty, track record etc of the employee

INDUSTRY PROFILE

CONTENTS

Chapter no

Executive summery

Page no

Executive summery Industry Profile Company Profile Product profile

2 3 4 5

Functional areas Swot analysis Findings,suggestions&conclusion Bibliography

A REPORT THE INTERNSHIP TRAINING UNDERGONE AT RANI FOOD PRODUCTS-VADAKARA

The internship training report submitted to Bangalore University, of management Bangalore in partial fulfillment of the requirement of

MASTER OF BUSINESS ADMINISTRATION

Submitted by ANJALIKRISHNA K.K (12DKCMA007)

Under the guidance BIRAJ ANIL AMITH-MBA

SIMS COLLEGE OF MNAGEMENT-BANGLORE