Internship Report on

COCOGURU COCONUT INDUSTRY PVT, LTD PUTTUR

By

HARIPRASAD. M

USN: 4SN17MBA20
Submitted to

DEPARTMENT OF MBA, SRINIVAS INSTITUTE OF

TECHNOLOGY

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Prof. HARIPRAKASH U P Mr. SHIVA KUMAR S

MBA Department Management Accountant

Srinivas Institute of Technology Cocoguru Coconut Industries

Mangalore Pvt . Ltd, Puttur

2018
 ACKNOWLEDGEMENT

This project report would be incomplete without expressing my sincere gratitude to all those
who have supported me in preparing it successfully. I would like to express my gratitude to
Dr. SHRINIVASA MAYYA D, Principal, Srinivas Institute of Technology, Mangaluru, for
this guidance and support in carrying out project. I would like to acknowledge my sincere
gratitude to my internal guide Prof. HARIPRAKASH U P for sharing his valuable ideas,
productive criticism and inspiration, which were the guiding light during the entire tenure of
this work.

It is a great pleasure to express my gratitude while presenting this report to all those who have
directly or indirectly helped and guided in undertaking my project successfully. I would express
my sincere gratitude to Mr. SHIVA KUMAR S, Management Accountant, Cocoguru Coconut
Industries Pvt Ltd. Puttur, for his support, cooperation and for providing all necessary
information required for the project.

I express my gratitude to all the faculty members of the department of Business Administration
for their encouragement. I would also like to thank God for giving me the patience throughout
my internship and my parents who supported me and helped me in all ways. Without all, I
could not have successfully completed my project properly in time with adequate data and
relevant substance in it.

Place: Mangaluru HARIPRASAD M

Date: 5/10/2018 (USN:4SN17MBA20)

 TABEL OF CONTENTS
SL.NO Pg.No
CHAPTER

1 INTRODUCTION 1-3

1.1 Introduction about Internship

1.2 Industry Profile

2 ORGANISATIONAL PROFILE 4-24

2.1 Back Ground and Inception of the Company

2.2 Nature of the Business Carried

2.3 Vision Mission and Quality Policy

2.4 Product /Service Profile

2.5 Ownership Pattern

2.6 Achievements / Awards

2.7 Future Growth and Prospects

3 MCKENY’S 7S FRAMEWORK MODEL 25-29

4 SWOT ANALYSIS 30-31

5 ANALYSIS OF FINANCIAL STATEMENT 32-38

6 LEARNING EXPERIENCE 39

BEBLIOGRAPHY 40
 LIST OF TABELS
TABLE PARTICULAR PAGE. No
NO.

2.1.1 Process Specification 16

5.1 Profit & Loss Accounts in the Year Ended 32

5.2 Balance Sheet in the Year Ended 33

5.3 Current Ratio 34

5.4 Gross Profit Ratio 35

5.5 Net Profit Ratio 36

5.6 Inventory Turnover Ratio 37

5.7 Assets Turnover Ratio 38

LIST OF GRAPHS
FIGURE PARTICULAR PAGE
NO. NO.

2.1.1 Manufacturing Process 13

3.1 Mckensy’s 7s Frame Work Model 25

3.2 Organisation Structure 29

 EXECUTIVE SUMMARY

As a part of curriculum every student pursuing MBA under VTU has to undergo internship
program. This internship project was undertaken at Cocoguru Coconut Industries Pvt ltd.
Puttur from 25th June to 24th July. This internship program has exposed many facts of an
organisation and also helped to gain practical knowledge.

The methodology used for study is direct interview methods and also secondary data are
collected from the websites and annual report of the company. For the purpose of financial
analysis, ratio analysis used for find out the company performance during the year. It drives
data from company’s financial statement breakdown that into different ratio in order to speak
about various things that are going insight the company.

Chapter wise summary: The whole internship report divided into 6 chapters for the better
understanding;

Chapter 1: Chapter 1 gives the basic outlook of the internship report. It includes the topics like
the introduction about the internship and gives the details about industry profile, methodology
used for collecting data etc.

Chapter 2: It deals with the explanation about the company and industry in which we undertake
internship. It also gives the information regarding the nature, vision, mission statement of the
company. It also explain the products which are produced by the company.

Chapter 3: It deals with the McKinney’s 7’s framework with reference to Manjushree
construction work.

Chapter 4: It deals with SWOT Analysis, it gives the outlook of strength, weakness, threat and
opportunities of Manjushree construction works

Chapter 5: Deals with analysis of data collected and its interpretation with the help of various
tools and the technique relevant for the study. Here ratios are used for analysis of various data.

Chapter 6: It describes the learning experience which gained through the four weeks of
internship
 CHAPTER 1

INTRODUCTION AND INDUSRTY PROFILE

1.1 Introduction About Internship

This Internship program is connected with the partial fulfilment of MBA degree course under
VTU. The main objective of any internship program is bridge the gap between the classroom
and practical work and real world situations. Theoretical knowledge which is the gained in the
classrooms becomes the base for all the real world transactions but there are some aspects
which can be learnt when dealt practically. Hence internship program helps in learning those
aspects of real world. This becomes the core objective of internship training.

The objective of internship training, included in the Master of Business Administration is:

1. To provide an opportunity for students to apply theoretical aspects in real life situations at
work place.

2. To sensitize students to the nuances of corporate culture and familiarize with the corporate
code of behaviour.

3. To enable students to manage resources, work under specific deadlines, and to carry out
specific goal-oriented tasks.

4. To enable students to discover their professional strengths and weakness and align them with
the changing business environment.

5. To sharpen domain knowledge and provide cross functional skills.

The study is conducted at Cocoguru Coconut Industries Pvt. Ltd. Puttur. The research has
theoretical and practical experience. This study includes the report on Working Capital
Management through the study of “Analysis of changes in Working Capital”

1
1.2 Industry Pofile

Fast moving consumer goods, it is also known as consumer-packaged goods. FMCG goods are
involved most common consumer goods which is most used. The most used FMCG products
are toilet soaps, detergents, shampoos, tooth paste, cloths, foodstuff and household accessories
and certain electronics items. FMCG products are used in daily life and it gives high income to
FMCG.

The India FMCG company is one of the 4th largest company. Its market share is about 30billion
US$ in 2011and 74 billion US$ in 2018. In rural areas most of the consumers prefer FMCG
products because it is cheap when compared to other products and also yields high income to
seller. City people also attracted towards these products, FMCG industry concentrate more over
urban people they attract urban consumers by offering lowest prices, attractive discounts, etc...
Urban community are careless about their health they mostly prefer fast food for consumption.

Many reputed and branded MNC companies are competitors here. If one company produces
a product at the same time same product will be produced by another company with slight
changes etc... In this competition only one product may get market. In FMCG products
sometimes company may produce same product with different quantity and quality that time
consumer mostly prefer quantity in rare cases consumer prefers quality of the product. The
India FMCG sector is an important contributor of the country’s GDP. This has been due to
liberalization, urbanization, and also increases the income and life style of the people. FMCG
sector is expected to grow by over 60% by 2011 to 2015, the sector is predicted to grow up to
33.4billion US$.

Top FMCG Companies

1. Hindustan Unilever ltd.

2. ITC

3. Nestle India

4. Dabur India

5. Asian paints

6. Britannia industries

2
New Development in FMCG Sector in India

As per the modern development in FMCG it is expected that the consumption of the FMCG
products will have reasonable growth with the growing revenue level of Indian population
together rural and urban areas. Around 200 million people are estimated to become the
customers of managed and packaged foods by the year 2010.

• Ex. Finance minister; Mr. P. Chidambaram did FMCG zone to pay various tax together
with putting payable emphasis on the organization increases in the same
• The normal development drivers such as diffusion, per capita consumption, and domestic
income where moderately strong in 2007 and also the consumption of FMCG products has
been maximized exceptionally in 2007
• Biscuits worth RS 50 per kilogram are completely exempted from excise duty, customs
duty on food manufacturing machineries were minimized from 7.5%, excise duties on food
mixes were reduced from 16% to 8%, and taxes were minimized on cooked oils. ITC,
Dabur, HUL and Marico were sprightly helped from these products.
• The consumption of well-being and individual care products in FMCG sector has enlarged
in the new past with increased in disposable income particularly between the youth group
in India.

A Brief History of Coconut Oil

Coconut oil was necessary to the sticky area in free mature period for the reason that it includes
many curing belongings. Coconut oil was recognized to contain anti-fungal, antiviral, anti-
bacterial, and anti-inflammatory possessions facilitate to destroy Bactria and avoid dangerous
sickness. Coconut oil was helpful in hot areas of the world for the reasons of Bactria was very
general in their groceries deliver and assess to keep local people from food stomach sickness.
Coconut oil was also utilized efficiently care for diseases. Coconuts were necessary resource
for food, medicine and even money. Now a day coconut is available in readily and they were
charged high price. The coconut oil uses allowed the world in hot areas, like south and Central
America, Africa, Indian subcontinent, micromole, Polynesia and the majority of Asia. The uses
are hence appreciated with the aim of they were documented by Ayurvedic medicine in
Sanskrit from 1500BC in all region describing to the mind, body and spirit. Early European
explorers, together with captain cook.

3
CHAPTER 2

ORGANIZATION PROFILE
Introduction Cocoguru

Coconut industries private limited manufactures unpolluted coconut oil. This industry is
located at Puttur, D.K District, Karnataka. The company uses original machines to abstract
coconut oil. Coconut oil is manufactured by new process instead of slightest process. They boil
copra before extract of the oil to get better taste, aroma and long life. Edible oil and hair oil are
packed in consumer packs. Cocoguru oil is available in pouches, bottles, cans, and also tins. A
Cocoguru oil production industry exists in Dakshina Kannada and its bordering districts.

2.1 Back Ground:

1972 – Bonanthaya Shiva Shankar Bhat completed his graduation in science from Kharwar. At
the age of 21, he setup a rice mill, coconut and ground nut oil mill in Palacode, Tamil Nadu.
With financial support from his maternal uncle (who later on became his father inlaw).
Operated it successfully for 9 years despite a difficult business environment back then.

1981 – Shivashankar Bhat got married and handed it over the mill operations to his younger
uncle. He had stints in Fabrication and High-Tension tower construction project with his elder
brother in Bangalore.

1988 – With the vision to setup something own and useful towards the people of his native
place Puttur. Shivashankar Bhat started M/s Sri Rama Industries with a flour mill and coconut
oil mill in Parladka, Puttur. It was inaugurated on 8th January 1988. It started with a single
rotary machine for oil extraction in Parladka unit. An oil sale cum copra collection counter was
opened in a rented room in Yelmudi. Job Work service was the main businessOperations grew,
goodwill developed, quality was recognized in Puttur and its surrounding villages. Summer
seasons became hectic with purchase and sales transactions. Another rotary machine was
added. the factory building was extended to add a godown. Another 2 rotary machines were
added to cater to growing demand. Shifted the counter to an own building in Yelmudi Main
Road. Started marketing Coconut Oil with Santhosh brand in Tins, Cans and Pouches to

4
wholesalers in Puttur town. He was ably supported by couple of trusted employees all along
the way.

2006 – Mr. Santhosh, younger son of Shivashankar Bhat, completed his BL, LLB from
Vivekananda Law College, Puttur. Aged 23, determined to continue the family business to next
generation, he joined his father in growing the business.

2009 – Mr. Keshava Ram, elder son of Shivashankar Bhat, completed his MBA in Marketing
from NMIMS, Mumbai. Prior to MBA, he had worked for 4 years in Software Industry at
Bangalore following B.E in Computer Science from SJCE, Mysore in 2003. Armed with
professional qualifications, he saw an opportunity to grow the business bringing in technology,
branding and modern principles/practices of management. At the age of 27, he returned to his
native Puttur and started working on his growth plans.

Cocoguru Trademark

Existing brand Santhosh was thought to be a common name. In a bid to have a unique name,
that reflected the Vision to spread the benefits of coconut to people, name Cocoguru was
coined. Logo and other brand elements were designed. Application was made to trademark
registry. Website domain www.cocoguru.com was registered, Facebook and twitter handles for
cocoguru was acquired. Logo and other brand elements were designed.

Automated Packaging

With more emphasis on branding, the products had to be packaged with brand name in it. So,
coconut oil packaging was introduced in pouches, PET Bottles and tins with trademark
Cocoguru. Those were packed using automatic packing machines, which started operating in
January 2010. This project was backed by Coconut Development Boards Technology Mission
on Coconut scheme and financed by Karnataka Bank. A floor with about 1000 sq. Ft. space
was built above existing factory. 3 packing machines, 2 filling machines, compressor and
accessories were installed there. An Oil Vending Machine was installed in the Sales outlet to
dispense loose oil to consumers.

5
Company Incorporation

Cocoguru Coconut Industries Pvt. Ltd. as incorporated on 2nd September 2010 on World
Coconut Day.

Commercial Production

On January 2011 the company purchases 78 cents land at kallarpe, Puttur, in February factory
construction was started, machines were installed in June. On September power connections
were done, testing and manufacturing was started in December 2010. Packaging machines was
transferred from parladka unit to kallarpe in January 2012 and started production. Under
technology mission Coconut development board provided monetary support to start the new
oil mill and also Karnataka bank provided term loan facility and working capital Cocoguru
Company.

Distribution

The Company is distributing products through different distributors

Manufacture Super Stockist Distributor Retailer Consumer

Roasted Coconut Oil

Boiler was introduced in the mill to produce steam to swelling copra before devastating to get
cooked coconut oil.

ISO 22000 Certificates

The company’s updated and unfailing production activities, food security, sanitation standard
and archives impressed ISO authorities to issue ISO certificate for 3 years in the month of June.

Hair Oil

The Company packing oil in HDPE bottles to use it as hair oil.

6
Company Information

Name: Cocoguru Coconut Industries Private Limited

Registered office: Door No-5-122/B, Kallarpe, Aryapu Post & Village, Puttur Taluk,
Dakshina Kannada district, Karnataka state. PIN -574210

Business Activity: Manufacturing of coconut based products, presently pure coconut oil.

Date of incorporation: 2nd September 2010

Corporate identity number: U51909KA2010PTC055039

Infrastructure:

Land

➢ Location – Survey No – 53/4, Kallarpe, Aryapu Village, Puttur, Dakshina Kannada,

Karnataka
➢ Landmark – Karpadi Subramanya Temple
➢ Latitude – 12.7213227-degree North, Longitude – 75.2202092-degree East
➢ Area – 78 cents
➢ Ownership – Previously used for agricultural purpose, industrially converted and
purchased by company in January 2011.

Level area other than built up area covered with cement interlock. Slope areas are covered with
trees. Surrounded by agricultural lands. Owned by others on all sides.

Building

➢ Factory Main Building Dimensions – 30 metres length, 20 metres width, 7 metres

side height.
➢ Area – 6600 sq. ft. main building. Around 8000 sq. ft. is the total built up area.
➢ Material – Laterite stone brick wall up to 9 feet height, Galvalume sheet side cladding
thereafter, Galvalume roofing.
➢ Extension – Firewood stock behind main building, Boiler area on side and transformer
yard at front.
➢ Other built up areas – Security room, Ladies and Gents change room, Reception
office, Canteen, Toilets and Gents urinals.

7
Plant and Machinery

Copra Section

Copra stock and segregation work area

1000 sq. ft. area capable of storing 45 tons of copra up to a height of 8 feet.

Copra Drying Hopper

2 Nos, each capable of storing 10 tons of full copra

Copra Dryer

Hot air up to 90 degrees can be generated using Steam Radiator and centrifugal blower. It can
dry 10 tons of copra in 10 hours from 5% moisture level to 2.5% moisture.

Copra Cutter

Cut copra into pieces of less than 12 mm size at the speed of 1 ton per hour using 5 HP motor

Steam Boiler

IBR approved horizontal type, solid waste fired steam boiler of 300 kg/hour steam generation
capacity. Generated steam is used for copra roasting in cooker and copra drying using steam
radiator.

Screw Conveyors – 7 Nos for material handling/movement of all solid materials like full
copra, piece copra, 1st crushed cake and final oil cake.

Oil Extraction Section

Capable of crushing 750 kg of copra per hour.

Cooker

Cooker capable of roasting 800 kg of copra per hour in 4 stages each with horizontal steam
jackets. Has an agitator to enable uniform roasting on all copra surfaces. It is mounted just
above the 1st expeller as roasted copra output is directly fed to expeller. Cooker has an exhaust
fan to exhaust moisture removed from copra. Steam can also be injected into copra inside
cooker.

Expeller 1

50 HP, 1440 rpm motor driven by Variable Frequency Drive (VFD) to control crushing
speed/load. Hard Faced worm assembly in screw press for 1st crushing.

8
Expeller 2

40 HP, 960 rpm motor driven by VFD. Case hardened worm assembly in screw press for 2nd
crushing.

Bucket Elevator – To move 1st crushed cake from 1st expeller to 2nd expeller. Aided by screw
conveyor for horizontal movement.

Filtering Section

Capable of filtering 500 kg of crude oil per hour. Filtering is done in 3 stages – Coarse filtering,
Main filtering and Fine filtering.

Vibrating Screen

34-inch diameter mesh in 2 stages to separate heavy sediments from oil. It reduces foots
concentration in oil from 10% to 3%. Used for coarse filtering.

Pressure Leaf Filter

Vessel with 800 kg oil holding capacity at 6 bar pressures with 10 square metres filtering area
SS 304 mesh. Can filter 600 kg of hot coconut oil per hour. Used for main filtering.

PP Filter Press

Filter Press with polypropylene filter plates 40 Nos, each of size 24″ x 24″, capable of filtering
600 kg of coconut oil per hour. Used for main filtering.

CI Filter Press

Filter Press with Cast Iron filter plates 24 Nos, each of size 24″ x 24″, capable of filtering 1000
kg of filtered cold coconut oil per hour. Use for fine filtering.

Intermediate Tanks

Tank Dimension – 4 feet length x 4 feet breadth x 4 feet height, capable of storing 1600 kg of
coconut oil each. 5 Nos of such tanks are used as intermediate tanks for various stages of
filtering.

Pumps

Positive displacement pumps for pumping coconut oil at pressure

9
Slurry Pump – Screw Pump with 1 HP motor for pumping unfiltered coconut oil with about
10% foots.

Gear Pump – Gear Pump with 1.5 HP motor for pumping unfiltered coconut oil with less than
2% foots

Cooling system

Intermediate tanks are water jacketed and circulated with cold water for cooling hot oil.

Oil Storage Tank

4 storage tanks with total of 30 tons oil storage capacity.

Packing Section

Pouch Packing Machines i.e. Automatic Form Fill and Seal machines, single head,
pneumatically operated.

4 machines, 1 each for 1 Litre, 500 ml, 250 ml and 100 ml pouch packing.

Bottle Filling Machine semi-automatic volumetric and weight based pneumatically operated
filling machines.

1 Double head, small bottle filling machine, 1 single head big bottle filling machine, 1 single
head bulk tin and can filling machine.

1 Strapping machine

30 Pallets of size 1200 mm x 1000 mm for staking and moving finished goods from packing
area to dispatch door.

1 Hand operated pallet truck.

Laboratory

Chemical testing laboratory to test the quality of copra, water, coconut oil and coconut oil cake.
Free Fatty Acid (FFA), Moisture, Oil Content, Iodine Value, Refractive Index, Saponification
Value can be found out inhouse.

10
Power Back Up

125 KVA Acoustically Enclosed Diesel Generator to back up State Electricity Board Power of
Maximum Demand 140 KVA from High Tension line.

Office is equipped with 5 KVA Inverter and Battery for running only office setup.

Office

Air conditioned office with tables, chairs, racks, cupboards, computers, LAN, Internet, printers,
ERP software for 15 people.

Canteen

Morning Breakfast and Tea at 10:30

Afternoon Lunch at 1:30

Evening Snacks and Tea at 4:30

Plates and Tumblers brought and washed by employees for themselves.

3 Toilets, 3 Urinals, 3 wash basins.

Why Cocoguru?

Pure coconut oil – Delivering Pure coconut oil may sound easy, but majority of brands
available in market are adulterated. They adulterate to be price competitive, most brands yield
to the pressure of supplying at low price to stay relevant. Then purity is compromised. Food
safety is not controlled strictly in India and adulteration is not curbed. So, delivering pure
coconut oil is extremely difficult, cocoguru is doing it and it is a BIG deal.

Roasted – Copra is roasted before oil extraction. It brings out the great taste and aroma of
coconut that is addictive to consumers.

Long life – Cocoguru coconut oil when packed in HDPE containers have life over 12 months.
The following factors contribute to long life High quality milling copra with FFA < 0.5% is
used as raw material.

11
Copra is dried to remove all moisture before crushing. Presence of moisture causes rancidity
in oil Copra when roasted removes any remaining moisture, heating sterilises the copra
Coconut Oil is packed air tight using good quality packing material to retain oil’s quality

Packing – Cocoguru is available in wide variety of packing to enable the versatile oil to be
used conveniently for any use. Best quality packing material is used to provide the necessary
protection and ease of carrying. Secondary packing that is good enough to carry the goods
across the full length of trade channels is used.

Competitively Priced – Company price may be higher than all unbranded/adulterated products
but is competitive compared to brands that are marketed nation-wide. Despite pressures to
increase price and margins by trade channel members, the MRP and supply prices are held
tight.

Consistent Supply – company motivated distribution channel partners aided by cocoguru

industries field sales force ensure the product is available in all shops always.

Widely available – Cocoguru is marketed on a wider geographical area and there are good
chances of finding it wherever you go and recommending it to your friends and relatives to buy
from their nearest shops.

Branded – Cocoguru is a brand and is responsible for all the actions in the value chain to
satisfy the consumer. Consumers have goodwill towards the brand and it is the duty to repose
faith bestowed on us by delivering on promises and high expectations. Decisions are to be taken
not based on short term profits but to build long term relationships.

Professional – Cocoguru is not a one-man army, it is managed by a team of professionals who

are focused and experts in their areas. They are accountable to deliver in their areas to
ultimately serve the customer better. Professional management though expensive gives depth,
scalability and continuity to business.

Socially Responsible – Company give good value to coconut produce of local farmers.
Companies employ local people and give them a good career opportunity. Cocoguru industry
does not pollute the environment or draw major resources from it. Company pays taxes fully
to the government tough it is not a normal practice in this industry.

12
Figure No.2.1.1 Manufacturing Process

Copra Copra Copra Copra Copra Oil Oil

Sorting Drying Cutting Roasting Crushi Filtering Packing
ng

Copra Purchase and Sorting

Raw Material purchased for coconut oil manufacturing is Milling grade copra. Only copra
made by sun drying of coconut is purchased from coastal area or copra manufacturers in
Kangeyam, Tamil Nadu. It comes with FFA 0.5% and moisture of around 5%. It is cup in
Sorting
shape, inner surface is white in colour and outer surface is brown/black. It comes packed in
gunny bags of 50 kg each. It is visually inspected and impurities are removed. Impurities
commonly found are coconut shell, kout (bad quality copra) and plastic/jute threads.

Copra Drying

Selected copra is loaded into a hopper of capacity 10 tons. Hopper has a mesh at bottom to
allow air to come inside but prevent copra from falling down. Hot air of about 75-80 degrees
is generated using steam radiator and pumped into hopper using a centrifugal blower. Hot air
is supplied continuously for about 10 hours. Moisture level reduces from initial 5% to 2.5%.
After drying copra becomes hard and brittle. Moisture when present in oil causes rancidity, so
when moisture is removed shelf life of oil increases. Oil extracted from moisture free copra
can be finely filtered too.

Copra Cutting

Milling Copra comes in half ball shape and other irregular shapes. This is not ideal for handling
and processing. So, it is cut into small pieces of about 1 inch size. A Copra Cutter driven by a
motor does this. The beaters cut the copra into pieces, when the pieces become smaller than
the desired size; they escape out through the mesh. These copra pieces are carried out through
a Screw Conveyor.

13
Copra Roasting/Cooking

Copra pieces are then roasted for about 1 hour in a steam jacketed vessel with continuous
agitation. A bit of steam is also sprayed into copra for better cooking. Steam is generated using
an Indian Boiler Regulation (IBR) standard steam boiler fired with solid waste. Steam is
supplied safely and efficiently with IBR quality seamless steam pipeline. Cooking helps in
better oil recovery, provides a sweet aroma and improves the shelf life of coconut oil. Heating
also sterilises copra.

Copra Crushing/Oil Extraction

Dried and Roasted Copra pieces are now fed into an expeller with screw press for mechanical
crushing under high pressure. Oil squeezes out of copra during this process leaving the fibre
out. Crushing is employed in 2 stages where 1st crushed copra is again crushed for the 2nd
time to recover maximum oil. The left out Oil cake will still have 8% oil. Extracting oil beyond
this level is not economical with mechanical crushing. Solvent extraction method will have to
be employed beyond this stage. Copra contains approximately 63% oil, 5% is lost as moisture
during the process, remaining 32% is oil cake. Oil is taken for further processing like filtering
and packing. Oil cake is packed in gunny bags and sold to solvent extractors or cattle feed
manufacturers.

Coconut Oil Filtering

Oil extracted through expeller will has about 8% sediments/foots. They are separated from oil
through a 3stage filtering process i.e. Coarse, Main and Fine filtering.

Vibrating Screen – Heavy sediments are separated by simple vibration of a mesh aided by a
vibrating motor. This is the simplest and cheapest method of filtration. This relieves the further
filtering stages of a lot of sediments and hence improves efficiencies there.

Pressure Leaf Filter – Pressure leaf filter is a vessel that uses vertically mounted Stainless
steel mesh for filtering under pressure. Oil is pumped into the vessel at a pressure and this
pressure causes the oil to pass through fine pored mesh for filtering. Oil cake is later separated
out using compressed air and vibrating. This process does bulk of the filtering. Alternatively
Filter Press is also used. Hot oil is used for fast filtering.

14
Filter Press – Filter press consists of plates and filter cloths. Oil is passed a pressure using a
screw pump. Oil passes through the finely pored filter cloths. Sediments and moisture remains
in the filter cloth in between the plates. Oil cake and sediments are separated by removing the
plates. Cold oil is used for fine filtering.

Coconut Oil Packing

Final filtered oil is either sold in bulk through tankers to industrial buyers or in small consumer
packs to end consumers through distribution network. Coconut Oil is packed in Pouches, PET
Bottles, HDPE Bottles, Wide Mouth Jars, Jerry Cans and Tins.

Automatic Form Fill and Seal (FFS) machines are used for pouch packing given packing film
rolls. 4 FFS machines are installed to pack pouches each of 1 Litre, 500 ml, 250 ml and 100
ml. These machines pack 10 pouches per minute for 1 Litre and 500 ml and 15-20 pouches of
250 ml and 100 ml. Semi-Automatic filling machines are used for filling definite quantity of
coconut oil in rigid packing containers.

Each SKU (stock keeping unit) after primary packing is secondary packed in corrugated carton
boxes. Pouches are filled in 10 litre boxes while others are packed in 12 litre boxes.

Storage and Dispatch

Packed boxes are stacked on a pallet. To prevent bulging of carton boxes stacking is done in
such a way that load is equally distributed on top surface of carton box. A hand pallet truck is
employed to move and dispatch to delivery door.

Quality Control

Critical control points are identified all across the process. Important parameters and their valid
range is defined, process is tuned to make the parameter values fall within the range. A
laboratory with necessary equipment’s are used for testing and measurement. Arrangements,
Upkeep, hygiene and cleanliness of materials and machines are ensured.

Quality control is expensive and time consuming but gives the much-needed consistency and
satisfaction to consumer.

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Table No.2.1.1 Process Specification
Process Parameter Company Process Alternative

Raw Material White Copra i.e., Dried Fresh Coconut is used in

Coconut Virgin Coconut Oil

Extraction Type Expeller Pressed Solvent Extraction

mechanically

Copra Roasting/Cold Press Copra is Roasted Copra expelled without

roasting is cold press
Filtering Online through Filter Press Small millers filter through
sedimentation

Refining Unrefined RBD- Refined, Bleached

and Deodorized

Distribution

Cocoguru reaches its consumers with the following distribution channel

Manufacturer - Cocoguru Coconut Industries Pvt. Ltd. are the manufacturers and marketers
of Pure Coconut Oil. It also owns the brand Cocoguru and is responsible for the entire chain.
The companies ensure that the product reaches the consumer in the right form at right price.

Super Stockiest – They purchase products from company, transport to their godown, keep
stock there and supply to distributors. They take responsibility of supplying to all distributors
in a given territory.

Distributor – They buy from super stockist and supply to all wholesalers, retailers and
institutions in defined area. They have regular/weekly visits to shops, collect orders, supply
items and collect payment from shops.

Retailer – They gets the supplies from Distributor or Wholesaler, displays them in his
Shop/Store and makes it available to consumers

Consumer – He shops for the product and is finally going to use it. He can share his concerns
directly with the manufacturer through the Consumer care contact. The manufacturer
ultimately looks to satisfy/delight the consumer.

16
Availability

Company is located in Puttur, Dakshina Kannada and products are available in surrounding
areas mostly. Company are working hard to make them available at more places soon.

Presently available areas

Dakshina Kannada – All taluks Mangaluru, Bantwal, Belthangady, Puttur and Sullia.

Udupi – Udupi, Kundapura. Not Karkala

Uttara Kannada – Sirsi, Siddapura

Kodagu – Madikeri, Somwarpet. Not Virajpet

Hassan – Sakaleshpura, Alur

E-Market - Amazon.in and spandeal.com

Water Conservation Measures Taken at Cocoguru

Water Usage

At Cocoguru factory at Kallarpe, Puttur, we use about 1.5 lakh litres of water per month.
Companies were lucky to get good water through borewell and have been using it as the only
source of water for all industries requirements. Water is used for steam generation (35%), Hot
Oil cooling (25%), watering plants (10%) and remaining 40% towards canteen, washing, and
toilets for 48 employees. Company made an effort to carefully collect the usage data to find
ways of managing water.

Water Conservation Tactics

We thought of conserving water in 3 directions.

1. Minimise water usage. Awareness was created among people to minimise wastage.

2. Use waste water effectively. Use used water where fresh water would have been used instead.

3. Source water from a easily recyclable source than bore-well. Rainwater, stream water and
open-well are the sources worked on for supplying water. Use bore well only if water from all
other sources are not available.

17
Water Sources

Rainwater – It rains continuously for 4 months from June to September. Then, rain water is
collected from building roof and is directed to use.

Stream water – Water runs off the earth surface in a stream adjacent to our plot till the end of
December. Building a check-dam across it in November extends the availability of stream
water by another month. So, stream water is available for 4 months from October to January.
Water does flow in full force during rainy season but it is not needed.

Open well – A well is dug for about 15 feet depth near the stream, it collects shallow
groundwater and are easily rechargeable. Water is available even in summer for 2 months i.e.
February and March. The check-dam retained water recharges the open-well and all other
aquifers nearby making the ground water-rich.

Bore-well – That leaves bore-well water required for only 2 peak summer months of April and
May. To keep the bore-well in useful running condition, it is also used round the year in small
quantities for canteen drinking water.

Expenses – 80,000 for open well, 40,000 for rainwater collection and usage system, 30,000 for
check-dam, 15,000 for waste water irrigation system. Total of 1.65 lakhs. With these steps, the
bore-well water usage is reduced to 1/6th of last year

2.2 Nature of Business

➢ Cocoguru coconut industries Pvt. Ltd. are manufactures of pure coconut from Puttur,
coastal Karnataka in south India.
➢ Coconut oil is hygienically manufactured using modernized machines but minimal
processing.
➢ Milling copra is roasted before oil extraction to get oil with pleasing taste, aroma and
long shelf life.
➢ Coconut oil is packed in convenient consumer packs for use as edible oil and hair oil.
Cocoguru coconut oil is packed in pouches, bottles, cans and tins.
➢ Cocoguru is available all across Dakshina kannada and its neighbouring districts.

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2.3 Vision, Mission, Quality Policy

Vision

“To spread the benefits of coconut to people”

➢ Spread: Cocoguru aims to spread/deliver the benefit to people by making valuable

products out of them with minimal processing.
➢ Benefits of coconut: All the parts of coconut are useful, Coconut husk fibre used to
make coir, coconut flesh is used in cooking, when ripe is used to make Vinegar etc,
➢ People: All kinds of people stand to benefit from coconut.
➢ Consumer: Coconuts have immense nutritional and medical benefits. Cocoguru makes
products with minimal processing so it is convenient to keep and use by the consumers.
➢ Farmer: Farmer can get maximum returns on their investment and efforts taken to grow
a coconut tree.
➢ Society: By delivering healthy product and generating local employment and by
following environmental friendly practices to create a win-win situation for everyone.

Mission

➢ Reduce cost and liability

➢ Innovation and creativity in furthering the organizational objectives
➢ Increase effectiveness in the use of organizational resources to enhance customer
satisfaction

Quality Policy

The quality policy of the company says:

“We ensure our products are safe and free of somatic, chemical and organic hazards by
preserving goods built-up practices and clean conditions with focus on continual development
at all levels of manufacture.”

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2.4. Product of Service Profile

I. Cocoguru Coconut Oil

1. Pouch cocoguru coconut oil: Flexible packing film with high barrier properties is used to
pack coconut oil. Proper sealing is done with Automatic Packing Machines to ensure that oil
doesn’t leak and lasts longer. This is the least expensive form of packing as the quantity of
packing material used is lowest. Cooking Oil consumers are recommended to use coconut oil
with form of packing.

➢ Available SKUs – 1 Litre, 500ml, 250ml, 100ml

➢ Secondary Packing - 10 Litres in a Carton Box
➢ Shelf life – 9 months

2. Wide mouth jars cocoguru coconut oil: Wide mouth jars are of green and opaque. They
come with a wide mouth to enable easy dispensing of coconut oil by spoon when oil is
solidified at cold temperature.

➢ Available SKUs – 1 Litre and 500ml

➢ Secondary packing – 12 litres in a Carton Box
➢ Shelf Life – 12 months

3. HDPE bottles cocoguru coconut oil: HDPE Bottles are of green colour and opaque. Bottle
neck is covered with a flip top cap for easy dispensing of small quantity of oil. This form of
packaging is ideally suited for Hair oil customers. This is also the most expensive form of
packaging. Higher weight of packing material is corresponding to the quantity of oil packed.

➢ Available SKUs – 500ml, 100ml and 50ml

➢ Secondary packing – 48 bottles in a carton box of 250ml, 6 bottles of 100ml and 9
bottles of 50ml in a shrink wrap
➢ Shelf Life – 12 months

4. PET bottles cocoguru coconut oil: PET bottles are transparent and oil packed inside is
visible. Bottles neck is sealed with a wad to ensure the oil is free from air contact, bottle is leak
proof and temper proof and oil is fresh when opened. Bottle is closed with flip top cap at the
top for convenient dispensing of oil. This packing is more expensive than pouch.

➢ Available SKUs – 1 Litres and 500ml

➢ Secondary packing – 12 Litres in a carton box
➢ Shelf Life – 6 months

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5. Jerry can cocoguru coconut oil: Jerry cans are white colour but opaque. They come with
an easy to carry handle to carry higher weight of oil. They are bought by families for cooking
use. They are pretty strong and the container can be used for several years.

➢ Available SKUs – 1 Litres and 5 kg

➢ Secondary packing – 1 Litres 12 cans, 5 kg – 4 cans in a Carton box
➢ Shelf Life – 15 months

6. Tin cocoguru coconut oil: Brand new tins are used for packing 15 kg net weight of oil. Tin
Top cover made of corrugated paper is used to protect adjacent tins from damage. Tin is
covered with strap for easy handling.

➢ Shelf life – 12 months

II. Coconut Oil Cake

Coconut oil cake is the byproduct of oil Extraction. It constitutes mainly fibre, 20% protein and
10% oil. Mechanical extraction of oil cannot recover oil in full. This oil cake can be used for
further oil recovery with a solvent extraction process. Oil cake can also be directly used as
cattle feed. Oil cake is packed in plastic bags of 50 kg. It is attractive for cattle because of the
roasted coconut smell.

2.5 Ownership Pattern

The Cocoguru Coconut Industries Pvt. Ltd. founded by Mr. Shivashankar Bhat. At presently
he is acting as chairman of the company. On 2006, Mr. Santhosh, younger son of Shivashankar
Bhat, aged 23, determined to continue the family business to next generation, he joined his
father in growing the business. At presently Mr. Keshav Ram acting as a Managing Director
of the company. The company whole share capital is managed by one family member’s. The
company promoters from one family.

It is basically family ownership business. It is owned and managed by one family member’s.

21
Management of Cocoguru

Shiva Shankar Bhat Bonantya - Chairman

Keshava Ram Bonantya - Managing Director

Santhosh Bonanthya - Director

Suprabha K Bonanthya - Brand Manager

Murali M Bhat - Production Manager

Shiva Kumar S -Management Accountant

Maheshwara Shastry - Financial Accountant

Yogish Rai B - Sales Officer

Nanda Kishora S - Sales Officer

Narayana Bhat - Logistics Officer

Vinoda Bhat - Packing Supervisor

Sharmila - Quality Analyst

2.6 Awards and Achievement

➢ ISO certified company

2.7 Future Growth and Prospects

➢ Improving a product performance

➢ Extension
➢ Customer feedback section
➢ Taking the suggestion, the workers

22
Growth

Establishment – 78 cents Land was purchased at Kallarpe on January 2011, Building

Construction started in February, Machinery Erection started in June, Power connection was
obtained in September, Trial production was done in October and commercial production
started in December 2011. Packing machines got shifted in January from Parladka unit to
Kallarpe unit and packing started in January 2012. Coconut Development Board again gave
financial assistance under Technology Mission on Coconut for setting up the new oil mill.
Term Loan and Working Capital was availed from Karnataka Bank.

Production Streamlining – All the installed machines were fine tuned to make them work as
expected, efficiently and together. Operators were trained to increase throughput, minimise
breakdown and maintenance. Quality, Hygiene and cleanliness was tightened. Experiments
were made in manufacturing process and the right process was adapted. Copra procurement
was fine tuned to purchase only copra made from fresh coconut of good quality from selected
vendors with favourable terms.

ERP Implementation – Company was into losses in the first 2 years. The extent and reasons
for losses were not exactly known as there was no real time accounting and inventory tracking
system. Then it was thought, the day we get the know the real picture of business is the day the
company will get into green. So, an ERP system was developed with a server and thin clients
for computing, connected over a LAN, Tally 9 ERP as software. Heads of accounts, ledgers,
stock items were created and transactions were accounted real time to give the management a
clear picture of business. Management could analyse the transactions and classify them into
profit making and loss making and tune the business accordingly.

Induction of Professionals – Professionals in each functional area like Production, Stores,

Purchase, Accounting, Sales and Quality were inducted and Promoters delegated their
responsibilities to them. Employees benefits like ESI, PF and festival holidays are given.
Annual festivals like Ayudha Pooja are celebrated, monsoon trips and skills training are
conducted. Uniforms are given. Annual performance reviews are done and good performers
are rewarded. These activities have helped the company build a strong employer brand where
best of people are attracted and retained.

Van Sales – Sales Van was purchased for the purpose of line sale/distribution of Cocoguru
products in January 2012. One route starting from Puttur is covered on each of the 6 days of
the week. More vehicles were purchased and hired, more routes were added and sales team

23
grew from 2 to 15, no of vehicles increased from 1 to 5. Other edible oils like Palmolein,
Sunflower and Lamp Oils were traded to cover our supply system to all shops over Dakshina
Kannada.

Distribution Network – The company used to supply its products to retailers directly through
its Sales Van. It is not a scalable model as more areas cannot be covered. Also, it was a
distraction for the company from its core activity of manufacturing and marketing. So,
distributors were appointed at those areas, they do it as a business not employment. When the
no of distributors grew and distributor transactions were getting complicated, super stockiest
were appointed at Puttur and Mangaluru. Super stockists hold stock and supply to distributors.
Scope of company in the distribution system was greatly simplified and gave the company the
bandwidth needed for more important areas.

Brand Building – Coconut Oil was initially priced in line with its major competitors to gain
traders acceptance. But in order to grow the product as a brand, quality of product was
increased, price was increased, and advertising was done to grow brand awareness. With strong
consumer preference for the brand, sales improved, premium price could be maintained and
improved.

24
CHAPTER 3

MCKENSEY’S 7S FRAME WORK MODEL

McKinney’s 7s framework was developed in the late 70‟s by McKinsey company reputed
management consultancy firm in United States. The framework rest on the preposition that
effective organizational change is best understood in terms of the complex relationship between
strategy, structure, systems, style, skills, staff and shared values.

Figure No.3.1 McKinsey’s 7s Frame Work Model

25
System

The system integrates the various activities of HR, purchase, materials, maintenance
department. The procedures, process, and routines characterise how the work should be done.
The flow of activities involved in the daily operation of a business including its core process
and its supports systems. The system represents the flow of communication and management
of information system in the organization.

Staff

Staffing is process of acquaint human resource for the operation assuring that they have the
potential combination to the achievement of the organisation goals. Cocoguru coconut industry
generally prefer to have qualified and dedicated management professionals in case of staffing
process at Puttur Plant.

Style

Management style is top down hierarchical where in their orders will flow from top to down
and the information is given bottom up to take timely decision to strengthen up the management
structure. The management believes in participative management rather than authoritative to
exploit the strength of the individuals for the benefits of the organization.

Shared Values

Shared value of the organisation can be characterised as the norms, views and culture shared
by the people working in the organisation. The values are the things that you have save for
even if they were demonstrably not profitable. Shared values in companies are

➢ Satisfying the customer in the first and foremost.

➢ Encouraging employees who enjoy their work.
➢ Living up to our shared values.
➢ Innovation ideation throughout the company and continues improvement in everything
we do.
➢ Honouring commitments whether made orally nor written.
➢ Technology, as it continues its advances, will be in the company’s plan operation.

26
Skill

Skills are the abilities that firm’s employees perform very well. They also include capabilities
and competences. During organizational change, the question often arises of what skills the
company will really need to reinforce its strategy or new structure.

Training policies and programs are suitably designed modified and updated on a continuous
basis to upgrade the knowledge levels and skills of its Executives, labours and workmen on par
with the best in the industry. While several new programs are introduced in tune with the
corporate goals the existing programs are made more interactive and learner friendly. Since
many manufacturing positions now require knowledge of a wide variety of processes and
procedures, workers must also have a willingness to learn and be flexible about job tasks in
this field. It will provide a certain opportunity to improve themselves.

Strategy’s

The strategies of the company are developed on the basis of an analysis of external and internal
environment. Consequently, the values, preference, attitude towards risk have been carefully
examined while formulating strategies.

➢ Marketing Strategies:

The plan devised to maintain and build competitive advantage over the competition. Strategy
refers to the determination of the purpose and the basis long term objectives of an enterprise
and the adoption of course of action and allocation of resources necessary to achieve these
aims.

➢ Product Strategies:

Cocoguru Coconut Industry Pvt. Ltd. aims at higher quality through customer satisfaction. For
increasing quality, company follows chemical free method.

➢ Price Strategies:

Quality control starts from its input. So, Cocoguru Coconut Industry Pvt. Ltd. adopt; quality
assurance method to maintain quality of the product. Quality assurance department testing
quality reliability through rigid specification and standard from design stage to packing stage
covering all aspects.

27
 ➢ Promotion Strategies:

Company promotes products through advertisement, personnel selling and also using online
sites.

Structure

The structure typically heretical arrangement of lines of authority, communication, rights and
duties of an organisation. Organisational structure determines how the roles, power and
responsibilities are assigned, controlled and coordinated and how information flows between
the different levels of management.

A Cocoguru coconut industry Pvt. Ltd. is engaged in the business of pure coconut oil in
kallarpe, Puttur. The Management Representative controls the functions of the whole company.
He has grouped the activities in accordance with the functions of the company. Company is
having a well defined hierarchical organizational structure both at corporate level, production
units, and marketing division. In spite of that the horizontal level interaction between different
disciplines makes the company smooth working at all defined levels.

In any organization there will be set of employees working for the development of and in the
process in order to achieve the goal act, they contribute a lot. For the effective functioning of
the organization there should be different categories of the jobs and the relation of one to
another should be made clear so as to introduce case in daily routine. It also says who is
responsible to whom and defines their responsibility.

28
Figure 3.2 Organisation Structure

29
CHAPTER 4

SWOT ANALYSIS
SWOT Analysis of Cocoguru Coconut Industries Pvt.Ltd

SWOT analysis of the strength, weakness, opportunities and threats of an organisation.

Strengths

➢ Coconut industries Pvt. ltd. provides safety and health facilities to the employees.

➢ It has a good management system.

➢ It has its own R&D department.
➢ Cocoguru coconut industry produce pure natural coconut oil.
➢ The industry undertakings E-marketing (available in amazon.in and snapdeal.com)
to market their product.
➢ It has its own domain & attractive packing.
➢ Good experienced staff and employees are in industry.
➢ It is a family business.
➢ The industry provides good canteen facilities to their workers and employees.
➢ There will be a good infrastructure facilities.
➢ There will be a good water facilities.

Weakness

➢ There is a poor promotional activity in cocoguru coconut industry pvt. Ltd.

➢ Market fluctuation is more effective on cocoguru coconut industry.
➢ Company mainly located on rural area so that it is not more popular in urban areas.
➢ Lack of storage capacity
➢ Fluctuation in market price of the raw coconut

30
Opportunities

➢ Increase of market share.

➢ They have opportunity of setting up a new retail outlet
➢ It is like family business so they can invest their own money to business.
➢ The process of expansion business opportunities through an existing product.
➢ They can raise capital of the business.
➢ There is an opportunity for product differentiation and grow in innovations
➢ Improving management skills for the goodwill of the company
➢ There is an opportunity to introduce products in Rural markets.

Threats

➢ Stiff competition from other competitors.

➢ Uncertain power cuts will affect the process of production.
➢ Burden of govt taxes.
➢ Increased trade difficulties in the form of non-availability of subsidies.
➢ Strikes and layoff will affect production.
➢ Hike in transportation charges.
➢ The changing government rules and regulations.

31
CHAPTER 5

ANALYSIS OF FINANCIAL STATEMENT

Table No. 5.1 Profit and Loss Account in the Year Ended
Particulars 31-march-2018 31-march-2017

Net Sales 15000000 14559500

Material Cost 6300000 6915327

Personal Expenses 950000 1499609

Manufacturing Expenses 3200000 3282115

Gross Income 4550000 3158899

Administration, Selling, Distribution 130000 146000

Expenses

EBT 4420000 3012899

Tax @30% 1326000 903870

Net income 3094000 2109029

32
Table No. 5.2 Balance Sheet in the Year Ended.

Liabilities 31.3.2018 31.3.2017

Share Capital 1,50,00,000 1,00,00,000

Current Liabilities 5,00,00,000 5,34,36,107

Current Accounts 30,00,000 39,34,596.00

Other Liabilities 9,00,000 9,46,746

Income and Loss 30,94,000 21,09,029

Total Liabilities 7,19,94,000 7,04,26,479

Assets 31.3.2018 31.03.2017

Fixed Assets 1,90,00,000 1,80,74,775

Deposits 25,00,000 24,65,182

Investments 1,60,00,000 1,64,90,273

Inventories 8,36,500 7,59,800

Current Assets 2,50,00,000 2,60,00,000

Sundry Debtors 23,00,000 20,67,829

Cash at Bank 48,57,500 30,91,513

Cash in Hand 15,00,000 14,77,102

Total Assets 7,19,94,000 7,04,26,479

33
Ratio Analysis

1.Current Ratio

Current ratio is an important ratio which depicts the short-term liquidity position of an
organization. It expresses a relationship between the current asset and current liability of an
organization. Generally, a current ratio of 2:1 is acceptable.

Current Ratio = Current Asset / Current Liability

Table No. 5.3 Current ratio

Year Current Assets Current Liabilities Ratio

2017-18 2,50,00,000 5,00,00,000 0.50

2016-17 2,60,00,000 5,34,36,107 0.49

Interpretation:

In this table when compared to 2016-17 to 2017-18 current ratio has increased. increasing ratio
clearly shows company get a good position.

34
2. Gross Profit Ratio

Gross profit ratio is quantity of overall effectiveness of the business. It is planned by in between
the uncultured profit by net sales and is usually communicated as a proportion.

(Gross Profit)

Gross Profit Ratio = ____________×100

(Net Sales)

Table No 5.4 Gross Profit Ratio

Year Gross Profit Net Sales Ratio

2017-18 45,50,000 1,50,00,000 30.33

2016-17 31,58,899 1,48,55,950 21.26

Interpretation;

In the above table, 2017-18 30.33% ratio and 2016-17 21.26%, so it clearly shows that gross
profit ratio is increased. This is favourable to the company.

35
3. Net Profit Ratio

Net profit ratio displays the profits made in relative to sale. Net profit specifies genera
competence of the firm in handling its organization, administration and selling the invention.

(Net Profit After Tax)

Net Profit Ratio = _________________________×100

(Net Sales)

Table No. 5.5 Profit ratio

Year Net Profit After Tax Net Sales Ratio

2017-18 30,94,000 1,50,00,000 20.63

2016-17 21,09,029 1,48,55,950 14.19

Interpretation:

Net profit ratio shows the overall efficiency of the company. This ratio is likely calculated
measure the profitability. In the above table when compared to 2016-17, it is increased in 2017-
18 so; it is favourable to the company.

36
4. Inventory Turnover Ratio

It is also called stock turnover ratio. This ratio indicates the number of times inventory replaced
during the year. It measures the relation between goods sold and inventory level. It indicates
whether investment in inventory is efficiently used or not. A high stock turnover could mean
increased efficiency, but dependent on the type of business. Supermarkets might have high
stock turnover whereas a shop selling high value musical instruments might have low turnover
ratio.

Cost of Goods Sold

Inventory Turnover Ratio = _________________________

Average Inventory

Table No 5.6. Inventory Turnover Ratio

Year Cost of Goods Sold Average Inventories Ratio

2017-18 1,04,50,000 8,36,500 12.4925

2016-17 1,16,97,051 7,59,800 15.3949

Interpretation:

In the above table when compared to 2016-17, it is decreased in 2017-18. This indicates that
the investment in inventory is not used efficiently. By using inventories in proper way, it can
earn good profit.

37
5. Total Assets Turnover Ratio

The assets turnover is an efficiency ratio that measures a company’s ability to generate sales
from its assets by comparing net sales with average total assets.

Net Sales

Assets Turnover Ratio= _________________________

Average Total Assets

Table No 5.7 Total Assets Turnover Ratio

Year Cost of Goods Sold Average Inventories Ratio

2017-18 1,50,00,000 7,19,94,000 0.2084

2016-17 1,48,55,950 7,04,26,479 0.2109

Interpretation:

In the above table, 2017-18 0.20843 ratio and 2016-17 0.2109, so it clearly shows that Total
Assets turnover ratio is decreased. This is not favourable to the company. If Total Asset
turnover ratio is more than previous year than that company is in favourable condition.

38
CHAPTER 6

LEARNING EXPIRIANCE
The study was conducted at Cocoguru coconut industries pvt. ltd Puttur to do the internship
program because of the belief that we could learn something beneficial from the company. It
was just what has experienced as well. The internship was helpful to acquire knowledge
required. As students, many of us are completely ignorant of the work culture of various
organizations. Internship can be said as an attempt to provide a practical exposure to the world
of practical working in firms and interns.

The general study of Cocoguru coconut Industries pvt. ltd was very helpful in knowing the
functioning of an organization in detail, it helped to learn the practical and theoretical
knowledge of the organization. The environment provided was very friendly and cooperative
and it was a very good experience the study helped me to understand how an organization
works, how it furnished, what are its strength. The employees of Cocoguru Coconut Industries
pvt. Ltd are satisfied with the wages but still the management should offer some extra
incentives along with the fixed wages. The management does careers planning for their
employees so they can feel secure and work comfortably in the organization. From the first day
of the internship they treated like one of the employee there, it was a great experience towards
the best future.

The external guide during the internship was Mr. Shiva Kumar S from who gave more
knowledge about the company, its business and their strategies. This summer internship was
so interesting, educative and beneficial. Hence, the report of internship training with a great
pleasure of knowing something new and getting a hand full of experience in this training period.

39
 BIBLIOGRAPHY

BOOKS:
1. Financial Management: I M Pandey

2. Financial analysis and performance – AmalenduBhunia

WEBLIOGRAPHY:
1. http://cocoguru.com
2. Wikipedia

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