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GM-HR Administration.
Selection procedure for executives:
The short listed candidates are called for the personal interview with the GM-
HR administration and the concerned department head. The candidates short
listed are taken for the interview with the vice president operations/MD.
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The candidates selected are referred to GM-HR and Administration to finalize
the terms of employment.
The selected candidates are given offer letter has to be
acknowledge by the candidate. Before joining the candidates need to undergo
medical examination in a hospital specified by company and allowed to join if
he/she is medically fit. The appointment letter will be issued to the employee
within a month of joining depending on the qualification and the previous
experience of the employee, he is placed on probation but if experience is
insufficient company will be placed on training also. On joining the company the
employees has to fill up the HRIS form.
Induction:
The purpose of induction is to induct personnel into the
organization and to familiarize with the functions of various departments. The
employees are given induction schedule based on which he/she understand the
basic functions of relevant departments management trainees are introduced
by one day induction. On completion of the induction a report is submitted to
the concerned department head and GM-HR and Administration. Induction report
keeps as a personal file of the employee.
Training and Development:
The purpose is to list activities relating to employees and
measuring the effectiveness of the training. The training needs specified in the
appraisal complied together and programs are designed to meet requirements. It is
jointly done with the help of the concerned department head and the HR
department. The information is complied and a training calendar is prepared before
the month of June of every year.
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General Programs address the specifications of the customer. Statutory
requirement, food safety and first aid also incorporated into the training calendar.
Trainings are scheduled as per the training calendar. After each
training a feedback are collected from the employees. After three months from
the date of training, training as done by the department head that interviews the
training calendar of the programmer and sends it back to HR department. All
trainings attended by the employee is recorded in the training record which is
maintained with HR external trainees/agencies identified by general manager to
handle specialized areas for training.
Performance appraisal:
The purpose to evaluate the performance of each employee
during the previous year and to identify the training required for further
improvements of the performance appraisal form. At the end of training and
probation period the employee's performance is evaluated. Overall
performance found to be good he/she is placed in the probation or confirmation and
is communicated in writing. If the performance hats unsatisfactory further
improvement training is required and probation is extended and is communicated to
the employee by a training and probation extension letter.
Promotion:
The promotion is on the basis of the performance of managers/executives and
for the workmen on the basis of experience and the promotional policy.
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AVT NPL Promotional Policy
The policy provides promotion from one grade to another grade. A
worker completing 5 years regular service in a particular pay scale will be promoted to
the next scale in the same category. All the promotion will be effective from April 1
of the year after the workmen complete 5 years of regular service. The above will
not be given to the workers if,
He has not worked for 240 days in a calendar year, in case the promotion will be
held for a year.
Any punishment is awarded for domestic enquiry proceedings for misconduct in
such case an eligible candidate will not be given promotion or a period of 2
years from the date of order of the punishment.
Grievance handling:
Industrial relation
Communication
Attendance
Bonus
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Industrial relations:
The management has recognized the association of employees by the
name of AVT NPL employee union. The management and union has entered into
a long term settlement on 19
th
August 2002 to establish fair work standards and
conditions to maintain harmonious relationship between workmen and the
company, to provide collective bargaining to prevent strikes, lock outs and
slowdowns to maintain effective and uninterrupted operations and thus ensuring
optimum quality NPL maintaining good HR among employees. And consistently
maintains team work inside the factory.
Communication:
Communication provides internal information service perhaps in the
form of staff news papers or magazines, hand out, booklets, videos. The internal
communication is done through telephone, e-mail, etc. Meetings are conducted
and minutes are recorded and kept for future reference. Department
meetings, open house with all employees and top management for sharing the
status of the business, welfare and related matters are discussed with selected
employee group by the HR departments and other departmental heads. In house
magazines are introduced as a part of the internal communication.
Attendance:
Attendance of executives is recorded by using punching machines and the
attendance register for other employees working in the company.
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Bonus:
AVT NPL provide attendance bonus. An employee having monthly
attendance of minimum 22days is given attendance bonus.
Compensation and Benefits:
The current compensation package is one of the best in the industry and is
adequate to retain best resources. Salary is paid monthly which is inclusive of various
allowances applicable to each grade. There are specific salary scales for each grade of
employees and are placed in the grades from Al (senior vice president) to T1
(technicians-grade3). Increments are given annually based on the performance
appraisal done at the end of every financial year.
Management compensation includes:
Basic salary + HRA + Children education + Convenience allowance +
Company car etc.
Welfare activities:
Free canteen & transport facilities
Monthly welfare kits & Bonus
Birthday celebration of employees
Marriage gifts
Uniform for employees
Restroom & Locker facilities
Free medical check up
Tours for employees
Personal leaves
Spice/ tea powder give at subsidized price
Recreation club
First aid
Mask, Louse
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Drinking water
Spittoons & Washing facility
Crushes for children of woman employees
Parking facility
Sports day
Family day
Types of leave:
AVT NPL has 3 kinds of leave, and they are:
1. Casual leave: 12 days per year this cannot be enchased and
accumulated.
2. Sick leave: 9 days per year can be accumulated 3 years cannot be
enchased.
3. For every 20 days one day will be granted as privilege leave.
Leave Application Procedure
Leave cannot be availed of as matter of right and the management may at its
desertion revise, revoke or curtail leave subject to the exigencies of the
working of the establishment and if need be recall and employee before the
expiry of the sanction leave.
Application for annual/privilege leave must be submitted 7 days before the
date of which the leave commences. Annual/ privilege leave must be
availed for not less than 3 days at the time and cannot be availed more than
3 spells in a year.
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The employees shall not down the order of his leave card before the date
of leave and on return from leave shall submit a joining report on writing
to his department head.
For sick leave the employee must produce sickness certificate within 24
hours of absence owing to illness and also produce fitness
certificate before resuming work. Employees covered under the ESI
scheme must produce their certificates from the ESI authority and other
employees from the company medical officer. Employees are required to
comply with the rules of return from illness policy. Illness reporting
has to be submitted for sick leave exceeds 3 days, risk assessment
format has to be submitted while applying for leave.
Application for casual leave as far a possible should be submitted 24
hours in advance. Casual leave shall be granted only for emergencies of
any unforeseen circumstances and shall not be for more than 3 days at a
time. Casual leave cannot be accumulated and will automatically lapse if
not available before 31
st
December.
Unauthorized absence will be dealt as per the service rule of the
establishment.
Any change/alteration in the card without authorization shall amount to
misconduct.
The employees should submit this to the department immediately for
obtaining leave sanction.
Reason for leave should be written in the column provided without fail.
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Manpower planning:
In AVT NPL management has done effective manpower planning.
Manpower planning is concerned with the determination of a quality personnel
required in an organization. Management is very friendly with their subordinates. It
will create a healthy atmosphere and giving motivation to the employees.
Trade Unions in AVT NPL: CITU
Workers participation in management:
Worker participation in management enables both the management and the
worker to share and exchange their view points in the process of joint decision
making. In AV1 NPL management give opportunities to employees for expressing
their ideas, opinion, and suggestion.
Employees Security Scheme
ESI
Health insurance scheme
Family planning scheme
Employee welfare fund
Shifts
There are 3 shifts
7.30am to 3.30pm
3.30pm to 11.30pm
11.30pm to 7.30 am
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Job Responsibility of HR Personals
GM-HR Administration
Manpower planning and forecasting based on the business plans and
employee turnover.
Training needs analysis, co-ordination of internal and external
training programs.
Performance appraisal
Grievance redressed by chart investigation and through department
leaves
Maintaining work plan discipline through employee counseling or by
disciplinary action against wrongful employees.
Negotiation with representative trade unions.
Liaison with Government bodies like labour departments as local
bodies
Continuity of annual revision, promotion and incentives.
Recommendation of need based welfare machineries
Executive HR
Assisting GM HR and administration in human resource planning and
operation, recruitment and selection.
Maintaining data bank industrial new recruitment co-ordination with
employees union.
Annual revision, promotion, incentives etc.
Organizational welfare activities.
Salary appraisal by maintaining statement attendance.
Maintaining updated HR details, training records, monthly statement,
and organizational celebration.
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4.4 FINANCE & SYSTEMS DEPARTMENT
Figure 4.4.1 Structure of Finance and Systems Department
Vice President
Systems & Finance
Finance Manager
Assistant Finance
Manager
Senior Executive
Junior executive
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Finance department is headed by General Manager Finance and assisted
by Deputy General Manager and executive at factory level and comes Vice
President responsible for accounting, financing, and costing. Apart from this
function, the department has to work hand with HR department in connection with
disbursement of salary, allowance and grievances
Finance department is one of the important factors, which provides access to all
resources for being employed in manufacturing and merchandising activities.
Financial management means keeping sufficient balance of money to meet the
daily requirements. This department monitors the day to day financial activities
and guides the management in the right direction and forecast the profit and growth
of the organization.
Financial management deals with the pricing of the product or raw
materials. The finance department issues the pricing list of the materials
instructed by the customer and if the customer is satisfied with the prices shown
by the AVT NPL then only the work orders are issued.
Functions of Finance Department
Considering the individual department budget and getting the approval of
the Chairman.
Raising funds
Apply funds
Declaring
Valuation and control expenses
Costing
Planning
Submitting the monthly information system to the management that is the
estimated budget v/s actual budget (day to day transaction)
Preparing the profit and loss accounts, balance sheet for the stationary and
internal purpose.
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4.5 RESERCH & DEVELOPMENT DEPARTMENT
Figure 4.5.1 Structure of Research and Development Department
Vice President
Research & Development
General Manager
Research & Development
Executive Research & Development
Chemist
Lab Assistant
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R&D is inherent feature of the company's operations which enables
the company to prove talent enveloping natural extracts and formulations.
R&D department involves in natural products to meet specialized customers need
in full-fledged lab.
R&D was given a special thrust and several new and value added
products where introduced in the last 2 to 3 years including Ethanol C-95% alpha
free cap. Decolorized and pesticide free Paprika Oleoresin, Chromo shrimp,
Rosemary Oil etc. New projects are taken in collaboration with
multinational like Cola project and Decaff.
AVT NPL believes in novelty and offers customer newer and
specialized products. Keeping in mind the salient requirements of the customer
and specific country laws with regards to Aflotoxins lotion and pesticide residues
they endeavor to meet these specifications through in-house developed processes.
As a result AVT NPL has developed in-house
separation technology that has been used to produce Oleoresin Paprika with
absorbance ration of more than Aflotoxin free and pesticide reduced Oleoresin
Capsicum.
AVT NPLs Centre for Research and Development was established in 2000
and is recognized by Department of Scientific and Industrial Research, Govt. of
India.
R&D focuses on both market driven and technology driven products to
meet the continuous market changes.
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Equipments of R&D Department
R&D centre is well equipped with an array of sophisticated
modern analytical instruments like GCs, HPLCs, HPTLC, GC-MS, and
Spectrophotometer etc To scale up new processes and products from lab to
commercial scale, company has invested in pilot plant facilities for
extraction/isolation, crystallization, column chromatography, reverse osmosis,
specialized tea processing machinery, spray drying,
microencapsulation.etc..Current focus is on carotenoids , natural antioxidants ,
specialty colours and flavours , value added teas , dietary fibers, phytochemicals
and beadlet technology.
HPLC (High Performance Liquid Chromatography) with cobra and
florescent detector for Aflotoxin and ETQ residue analysis.
CIO spectrometer for regular analysis is of active ingredients and GCMS
(Gas Chromatograph with Mass Spectrum) of 15000 components.
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Organization Contribution to the Society
Social Responsibilities
AVT Natural, as a part of its social responsibility identifies the needs of the
neighbourhood and fulfils them completely.
They support 30,000 small and marginal farmers with technology to improve their
net farm returns and their livelihood. We respect our neighborhood and all our
stakeholders.
Eye Clinic: Around 40,000 school children were screened and, those who required
vision correction were identified and given the necessary treatment. This was
carried out by the doctors from ShankaraNetralaya in association with AVT Natural
Products and Rotary Club,Sathyamangalam.
Successful cleaning of weeds and waste materials from the Bhavani river banks and
strengthening of the embankments to provide better irrigation facility to the farming
community was carried out.
Infrastructure of the approach roads to our facility was further rectified.
Yearly financial assistance offered to the Panchayat for the Polio Eradication
Programme.
Free weekly medical checkup and assistance provided to the rural community by
doctors of AVT Natural Products at Sathyamangalam.
AVT has offered numerous facilities in the education sector by providing basic
amenities like computers, laboratory equipments etc. for the students of neighboring
schools. Cash awards have been endowed on top ranking students in the final year
of their school.
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4.6 ENGINEERING DEPARTMENT
Figure 4.6.1 Structure of Engineering Department
Vice President
Operations
Senior Manager
Senior Executive
Supervisor
Technician
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In Engineering department different units in three sections
are headed deputy manager engaging services and report to the Vice
President. This department is divided into three sections based on the
function namely Mechanical, Electrical and Utility.
Mechanical Department
Mechanical section under take repairs and maintenance of
all machine and also take care of preventive maintenance. Modification
of existing machineries are allocating as per the requirements in
production department. The production department issues Job
Requirements Form (JRF) on the basis of which the en
g
ineering
department initiates actions. There are 5 technicians and supervisors working
in this department.
Procedure of work:
Concerned department in
consultation with the engineering department give the job description.
On the job description is prioritized after completion for is prepared and
give to department. The format is called hot job order is prepared for
work than can't be undertaken under the factory premises are given to external
agencies.
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Electrical Department
Electrical department utilizes power from
KSEB through 11 KV Substation. Two 350KV AVG/ ADO set s ar e
used when KSEB suppl y i s not avai l abl e. Thi s department is also
undertake routine maintenance of electrical circuit equipments like
LAN cabling, EPABX cabling etc. in addition to preventive
maintenance to avoid break down.
They also undert ake vari ous energy
utilizati on
studies to ensure optimum usage of power. This includes
power supply calibration of all machines operating equipments in the
cooling tower and chilling unit. In certain situation energy shortage time the
KSEB do not provide supply due to peak time requirements. So in these
situations diesel generators are used. Diesel is obtained from Indian Oil
Corporation on monthly basis. Diesel is stored in underground tank. This
department prevents break down and interruption to production.
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Utilities Department
Utility department consist of four first class
boiler operators in this staff category aid four technicians. This
department is mainly
responsible for generation of steam under pressure.
There are two boilers of tones capacity for each. This steam conveyed
through insulated pipeline for production. This department is also responsible
for production of the effluent treatment plant, process and distilling of water
is treated as per pollution control system.
The effluent treatment plant consists of collection
tank, safe tank, an aerator tank and clarifier. The waste water is properly treat
before let out monthly return pertaining to water consumption and analysis,
report of raw materials and treated effluent are sent to the pollution control
board. The water treatment plant is set up for the properties of water used for
various purposes. Water is obtained from the nearby pond and is pumped to the
collection tank. From the collection tank the water passed through the sand
filter and the softener, this water is used for all domestic purpose in the
plant and office.
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4.7 QUALITY CONTROL & ASSURANCE DEPARTMENT
Figure 4.7.1 Structure Quality Control and Assurance Department (QA/QC)
General Manager
QA& QC
Manager
Assistant
Manager
Executive
Chemist
Attender
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The department is responsible for quality control of production from
purchase to finished goods. This facilitates to get a
g
ood image in the market.
They used international standard tests pungency solvent reside pesticides reduce
and colour value.
Advance equipment like HPPC, GC and spectrophometers are
used for total commitment to quality, safety extensive quality system and
processing operations. The most modern analytical lab closely monitors quality
tests for Aflotoxin PPB (Parts per Billion) level. HPCC gas chromatograph and
spectrometer fully fledged instrumentation for physical, chemical,
microbiological and micro sanitary, standard analytical procedure
conformed to ASTA/OAC/EWISO guidelines.
Major Quality Assurance Policy
HACPP- Hazard Analysis 84 Critical Point Policies
Delivering constant and high quality natural plant extract,
Meeting and exceeding the customer expectation.
Ensure safe product by implementing good manufacturing practice right
through the processing step from raw materials and finished products.
Motivating employees trainin
g
and development and effort for
production of environment in its operations.
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Glass Policies
AVT NPL is a natural production processing industry manufacturing spice
oleoresins, food flavour, natural antioxidants etc. AVT ICPL is committed to avoid
production contamination due to breakage of glass by;
Preventing any unauthorized glass usage.
Ensuring classification of glass used in the processin
g
and non-processing
area into four groups based crystals and how essential for processing by
ensuring adequate safeguard to address food safety.
Progressively moving towards reduction in processing area.
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4.8 PURCHASE DEPARTMENT
Figure 4.8.1 Structure of Purchase Department
Vice President Operation
General Manager Purchase
Manager Procurement
Executive
Manager Purchase
Purchase Assistant
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The purchase department i n the AVT NPL is headed by
GM Purchase and assist by managers. The department ensures that it
intense and use the best of materials appropriate to the needs. The department
has two sections;
Purchase
Procurement
Purchase Department
Purchase department takes care of all the capital
purchases which include machinery, spare parts, coils and lubricants,
chemicals and stationary materials. The department does not handle raw
material procurement.
The Purchase Process As Follows:
The store department has to send the material indent to the procurement
department.
After getting the material indent the department will see whether the
item is budgeted or not and whether it is in the Capital Appropriation
Request (CAR) which is approved by the Chairman.
After proper vendor evaluation the purchase order is raised and the
item is purchased.
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Procurement Department
This department takes care of consistent and
on time supply of raw materials as per the requirements of production
and planning department. To develop raw supplier and new source of
raw material to get the cost advantage to the organization the department
ensures that vendor and evaluated to maintain the quality of the raw
material being supplied by them. The GM Procurement is responsible in
ensuring evaluation and approval of vendor for the raw materials. The
approved vendors are monitored by the message for the supply of raw
materials made by them.
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SWOT ANALYSIS
SWOT Analysis is a strategic planning method used to
evaluate the strength, weakness, opportunities, and threats involved in a project and
identifying the internal and external factors that are favorable and unfavorable for
achieving that objective. The technique is created to Albert Humphery who led a
research project at Sanford University in the 1960s and 1970s using data from 500
companies.
SWOT analysis is undertaken to understand the firms external
and internal environments. A conscious identification of the relevant environment
enables an organization to focus its attention on these factors which are intimately
related to its mission, objective and strategies.
STRENGTH
ISO Certification,
Largest producers of Marigold extracts established in the world.
Established market abroad.
Draw synergies from AVT McCormick in the areas of food safety
Backward integration program is a major strength of the organization
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WEAKNESS
No direct connection with end consumers.
Common people have less awareness about Oleoresin.
There is no domestic market for Oleoresins.
OPPORTUNITIES
Growing demand for natural products.
Chances for diversification.
Establishing market all over the world.
Chances for the domestic market operations.
THREATS
Mass production by China and Peru
Domestic competition
Unable to supply in accordance with demand due to scanty rain.
Seasonal variation may affect raw materials production and
procurement.
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FINDINGS & SUGGESTIONS
6.1 OBSERVATION
The HR department here brings in a new name for the company -home,
where family members work happily, hand which brings in union and
strength to home as such.
The plant potential, modem technology, quality control methods and
policies make the customer a happy man.
Surroundings are very clean and attractive.
6.2 FINDINGS
The company should improve logistic orientation and try to have a
logical vision and turn its efforts to meet this vision.
The company should also improve its policy for the customers. The
company should have a written customer policy.
The company measures the customer satisfaction levels.
AVT has efficient management system
AVT provide free transport and canteen facility to their employees
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6.3 SUGGESTIONS
AVT should have written customer service policy which communicated
internally and externally.
Review quality testing and reduce lead time for release.
Reduce new product development time.
AVT should look up the option of setting up of regional distribution
centre in Europe will help to reduce the lead time and increase service
level for customers market.
The company should measure the customer's satisfaction level.
Improve infrastructure facilities.
Suggestions should be obtained from employees for future
improvements
AVT has established market in abroad. But AVT has no domestic
market for oleoresin. So AVT should take steps to improve the domestic
market
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CONCLUSION
The AVT group of companies after 85 years of operation has
significant presence in India's agribusiness sector including plantations, agro
processing, and plant bio- technology natural food ingredients. The study was
carried out in order to analyze and to understand the functional areas of the
organization. It is having well structured departments which are functioning
efficiently. The unique strength of AVT NPL is that it is the largest producer of
Marigold extracts in the world. New frontiers of science and technology will play a
dominant role in the future of spice industry.
The company which is completing sings in
the international market for its business in all aspects of its operations, it is
maintaining a very high standard better than other global competitor in
utilization of resources, man, machine and raw materials. The company is
upgrading its operations to keep up the place of demands from the global market.
The organizational study gave me an insight into the functioning
of the company AVT. The top management here is very efficient in decision
making, even though its functions are more or less similar to public sector
undertaking. The AVT has good opportunity in the global market. The companys
investment in expansion project provides other private and public institutions with
greater business opportunities.
The success of AVT would definitely encourage other enterprises to enter the
field of natural product. AVT is fulfilling its set objectives and making its mission
possible. The company is leading for a bright and prosperous future.
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The study in AVT group helped me a lot to understand die
application of management practices in an organization. The study was based on the
information collected through direct interviews, observations and written statements
available from the organization. The study was a great experience and had given me
firsthand knowledge about the organization.
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BIBLIOGRAPHY
Literacy Reference: AVT NPL, South Vazhakulam, Aluva
Text Books References:
Kothari C.R. Research Methodology: Methods and Techniques, New Age
Publishers, New Delhi, 2
nd
edition 2005.
Philip Kotler 2001 Marketing Management, Prentice Hall of India Pvt.
Ltd, New Delhi.
Pandey I.M. Financial Management, Vikas Publishing House Pvt. Ltd,
New Delhi.
James Mill and Robert Torrens Principles of Political Economy, 1817
Website:
www.avtnatural.com
www.indianspices.com
www.marigold.com