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Kse Project

In: Business and Management

Submitted By maddyijk
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Organization is viewed as a group of persons for achieving its goals. The study about organization is termed as organization study. Organization affects the quality of human life in modern society. The study of organization is thus very essential for understanding the behaviour of human being.
Organization can be studied in two perspectives that are micro and macro. In micro perspective, the focus of study is on individuals. It concerns itself with each individual’s psychological makeup, his interaction with other individuals and groups. The micro view of individuals in organization is recognized as a discipline called organizational behaviour.
The macro view considers organization as the unit of analysis in place of an individual. It is concerned with organization as the unit of analysis in place of an individual. It is concerned with organizational goals, organizational structure, technologies used in organization and how organization interact with the environment. The macro perspective is recognized as a discipline called organizational theory. Both these aspects taken together to present a complete picture of organizational study.
The organization study is a relevant part of our MBA program; this would enable to meet and attain a practical and real time feed of various aspects concern and to relate it to be concept and theory studies in the classroom. This exercise would help the future managers to meet the challenges lying ahead.
All organizations are required to handle multiple problems and procedures. The intention of an organization is to overcome these hurdles.
Different techniques are being employed by every organization to accomplish a favourable organization climate. It is the study of the culture and sub culture in all dimensions. The study is conducted to know the functions of the organizations. It is conducted in KSE LTD, IRINJALAKUDA.

OBJECTIVES OF THE STUDY * To get an idea about the organization * To familiarize with different management activities * To get an idea about the authority structure and effectiveness of the company * To analyse the strengths, weakness, opportunities and threats of the company. * To study the functional aspects of the department of KSE LTD.

There are mainly two types of data are used for this study are: 1. Primary Data * Observation * Unstructured Interviews

2. Secondary Data
Secondary Data are those data which are already collected by someone else. They are collected from journals, existing records, and files report of the company.

Scope of the study is immense as it is named at covering the entire operation of plant and workers department in the organization. The study gives an insight in to the day to day operation and management of the organization.

LIMITATION OF THE STUDY 1. The researcher could not see all the employees personally and hence the research could no collect the opinion of all the employees. 2. The top management was reluctant to disclose matters related to the internal affairs of the company



The solvent industry has achieved a phenomenal progress and at present there are 520 units having overall oil cake or oil seed processing capacity of more than 9.9 million/year. The solvent extraction plays important role in the oil industry. Solvent extraction in India was started at 1945, it had to struggle for more than 20 years to establish it.

In the year 1960’s there was a crisis in the coconut oil extraction industry in Kerala. After the conversion from wooden ghani’s to rotaries the cost of production has increased considerably. By using the new method, there were able to extract more oil from coconut cake. Earlier 20% of the oil was retained in the coconut cake, now it has reduced to 12%.

When oil industry in other parts of the country was thriving, in Kerala it was struggling. So they understood the need for modernizations of their mills.

At the time Dr.P.S.Lokanathan committee setup to study the feasibility of starting new industries in Kerala, recommended the establishment of 3 solvent plants in Kerala and it was also proposed that one should be located in Thrissur itself.

There are only few cattle feed units in the country especially in Kerala. The cattle feed industry of the state has been utilizing the indigenous raw materials that is coconut cake which is the residue left after the extraction of oil from copra, which is mainly used as cattle feed. Coconut cake contains 4-5% oil, is generally used for industrial purpose and de-oiled cake is used to make mixed cattle feed. The excess amount of oil in the coconut cake reduce keeping quality of cake used also upset the digestive system of the cattle.

Thus in 1976 KSE Ltd enters the cattle feed industry, setting up the new plant for manufacturing ready mixed cattle feed. The last three decades KSE have been emerging as the leader in ready mix cattle feed industry. Today KSE commands, resources, expertise and manufacture infrastructure of a range of livestock feed in high volumes driven by a commitment to high standard of quality.


KSE LTD in one of the top ranking industrial units in India. Establishment of KSE LTD was the result of continuous effort and strong commitment of a group of people in and around Irinjalakuda. It was very first solvent extraction plant in Kerala. KSE is emerging as the leader in solvent extraction and ready mixed cattle feed industry.

Kerala solvent extraction was registered as public limited company on 25th September 1963. This is the first solvent extraction company in Kerala.
The company was started by oil millers association of Thrissur in Kerala with the objective of minimizing oil loss. The first solvent extraction plant was established in 1972, which is premier solvent extraction in Kerala.

Earlier, roller mills and expeller mills are used in the production of oil, but in this process oil is very high. The technological advancement leads to the solvent extraction process. Coconut cake is used in the main raw material for oil extraction, which is called copra. The de-oiled coconut cake is used as raw material for the cattle feed.

The company had made amazing contribution towards social development rural uplifting and has striven for excellence, in the faces of activities. The company has also achieved many awards.

KSE is a company having annual turnover of Rs.187 Crores, is the largest manufacture of cattle feed. It was in 1963 September 25, Kerala Solvent Extraction LTD, entered in solvent industry. The oil millers of Thrissur are the promoters of the company. The company commenced its production in the year of 1972 with a solvent capacity of 50 tonnes per day. It provides employment of around 1500 directly and 5000 numbers indirectly.

On the road of success there were mainly hurdles. Initially the mobilization of capital cause to main challenges, the future looked grim. But determination and optimism paid off. The solvent extraction plant was setup to manufacture ready mix cattle feed which was a pioneering step.

The head office at Irinjalakuda has 2 servers and 40 nodes running the application and other units, in the above 8 servers and 50 nodes. The latest plant at Vedagiri, Kottayam has a computerized control room for monitoring homogenization, size reduction, batching, palletisation, pellet cooling and aspiring system.

Awards and Recognitions
1. “Best productivity performance for Cattle feed in India” Award from National Productivity Council continuously for Eleven Years 1996-97 to 2005-06.
2. ISO 9001-2000 Certification.

3. “The solvent Extractors’ Association of India”-SEA Award for highest processor of coconut cake in India, since institution of the award continuously for 20 years including 2009-10.

4. Kerala state productivity Council award.

5. “Top Cattle feed Award” for aflatoxin free feed from “The Indian Association of Veterinary Pathologists” (IAVP) and Kerala Agricultural University.

6. Tamil Nadu productivity Council Safety Award.

7. Animal Nutrition Society of India Award for Company’s contributions for propagation of balanced compound livestock feed in India.

8. Industry Excellence Award from the Indian Society for the study of Animal Reproduction for the year 2001.

9. Entrepreneur Award from the College of Veterinary and Animal Sciences.


Sale of KS cattle feed in selected markets in Tamil Nadu was started as early as 1984. To enable the company to extend its products and services to whole of Tamilnadu, a new production unit was set up at swaminathapuram in Dindigul District of Tamilnadu. A solvent extraction plant was started the very next year. Spread out on 22 acres of land on the banks of river Amravati, this Rs.3.5 crores plant works round the clock. Keyes Forte is also manufactured at this unit. A MODEL Dairy farm with high yielding animals is also maintained in the unit for conducting feeding trials and other experiments.


The third cattle feed plant of the company with a daily production capacity of 240 MTs started operation at Vedagiri in Kottayam District, in March 1996. This Rs.6 crores project, fully financed from internal resources, was formally inaugurated on 17th August, 1996.


Palakkad feed factory was renovated and new machineries were installed to produce Cattle feed. The products from this unit are marketed in the Districts of Palakkad, Malappuram and part of Calicut.

KORATTY UNIT Company acquired land from Kinfra Small Industrial Park, Koratty, Trichur Dist. and installed 200 TPD Solvent Extraction plant and 100 TPD Physical Refining Plant with a capital outlay of Rs.14 crores for refining Vegetable oils. Solvent Extracted Coconut oil is refined in the plant and made edible. Commissioned fractionation Plant in March 2009.


KSE Limited has entered in the field of milk procurement, processing and marketing of liquid milk and milk products. “K.S. PAAL, K.S. GHEE, K.S. CURD and BUTTER MILK” have already become popular in Trichur and Ernakulam, Malappuram and Alleppey Districts. Activities of Dairy Division with Two Dairy pants at Konikkara and Thalayuthu are progressing well. Ice cream under the brand name “VESTA’ was launched during August, 2002. New Ice-cream plant at Vedagiri commissioned.


We should endeavour to maintain leadership through quality products, explore the new avenues in the product development and marketing, create a stronger bond between the management, work force, dealer and customer, and contribute to social development and rural upliftments and constantly strives for excellence in all spheres of our activities.
* To become a marker driving company from market driven company. * Educate and train the livestock frames to practice scientific feeding to optimize livestock productivity. * To support the development of knowledge based network on the feed related activities. * To a culture of innovation and creativity amongst the employees. * To be an active partner in community development program. * To add more Ice-cream production units across Kerala in coming years. * KSE, with a capital base of Rs.36 crores embarks on the expansion to double its solvent extraction capacity and add a most modern eco-friendly vegetable refining plant.


The memorandum of association of the company specifies 38 board objectives for which the company is established. The most important are:

* To produce, manufacture, extract, purchase, prepare, import, export, sell and generally to deal in oil from seed, oil cakes and other oil bearing material to carry on the business of refining and hydrogenation of oil and manufacturing of by-products there from and the traders commenced herewith. * To acquire, erect, construct, establish, operate and maintain oil mills, extraction plants, workshop and other works. * To purchase for the purpose of business of the company, oil expellers, disintegrators filter press, oil deodorizing, washing, dying, bleaching and other machines. * To purchase, manufacture, treat, sell or otherwise deal oil cake, washing soaps, toilet soaps, hair oil and tinned products etc.

Kerala Solvent Extraction limited has been promoted by the persons traditionally engaged in the business of oil extraction, trading in the cattle feed. The Promoters are well known for their quality products.

The Promoters are: * Mr. M.C. Paul - Chairman and MD * Mr.T.O.Paul - Executive Director * Mr.P.K.Varghese - Whole time directors * Mr.A.P.George - Director and Legal Advisor

Chief General Manager - Anand Menon




One of the all times favourites in the cattle feed.
A Special cattle feed that has won immense popularity.
A bypass protein fed with ISI mark, specially made for cattle with superior germ plasma and high production potential.
Protein rich, tasty, de-oiled coconut cake.
An invigorating feed supplement for cattle.





In cattle feed sector, competition is high, as government sector company “Kerala Feed” set a plant at Kalletumkkara (Irinjalakuda). They have come up with MSE brand of cattle feed.
Other milk making federation of Kerala is also strong competitor of KSE. Other players in the market are Amul, Godrej, Tata, HLL (Gold Maher brand), Mysore feeds, Prima.
Vesta Ice-cream has also competitors some of them are Joy, Arun, and Uncle John etc.
In the milk and milk product Sector Company have lot of competitors. In fact the company is not allowed to compete the market with its strongest opponent MILMA. Government is showing high protectionism towards Milma. KSE Ltd is given permission to procure milk only from certain areas of Thrissur District and it is only allowed to market milk in Thrissur and Ernakulam District.



The company is divided in following ways:

* Personnel Department * Finance Department * Purchase Department * Production Department * Marketing & Sales Department * Quality Control Department * Stores Department


Figure 4.1 Structure of Personnel Department

The workers have the important role in existence and the growth of an organization. So it should be managed carefully. The growth of industries is to larger and complex units employing various categories of workers created special problems. Hence, a separate department specialized in the knowledge of human relations is inevitable. The personnel manager utilizes the maximum individual ability, promotions of team spirit, develop job satisfaction, reduce labor turnover and improve production. And also leads to attain the organizational goals the personnel department of KSE ltd is very efficient and functioning very well under the control of an efficient personnel manager. The important functions of the department are * Classification of employees/workers * Recruitment to all department of company. * Fixing the wages and salaries of employee in consultation with trade union. * Running welfare scheme for the employee.

Classification of employee / workers
The employees/workmen are classified as permanent probationer, badali, or substitute, temporary and the casual. * A permanent employee or workmen in one who has engaged on a permanent basis by a return order to that effect and includes any person who has satisfactorily completed probationary periods of six months. * Probationer is one who provisionally employed to fill a permanent vacancy in a permanent or temporary post, otherwise than temporary or casual employees and continuous as such until he has been notifies by the management that he is made permanent from the temporary post after satisfactory completion of the probationary period of the employment

* Badali / substitute are one who is appointed in the post of permanent workman and the probationer who is temporary absent.

* A temporary employee is one who is employed for the work which is essentially temporary nature likely to be finished within a limited periods or who is employed temporarily in permanent post.

* A casual employee or workmen is one who’s employment or an occasional or casual nature and who is not entitled to claim for the future and continuous employment.

The recruitment is done on the basis of the requirement of the company. At the initial stage, an expert will be asked to submit a project report on the requirement & recruitment will be based on the report. The requirement of employee is based on the request of each department.
The selection committees consist of General Manager, Personnel Manager, and the Manager of concerned department. On determining the requirement, notification is given on various media. A written test is conducted, from candidates those who are selected in 3:1 ratio to the number of vacancies. Interview is conducted to select apt candidate

Employees are selected strictly based on their education qualification, work experience, technical knowledge and age. The company will do the recruitment by giving the advertisement through: * Newspapers * Employment Exchange * By promoting their own employees based on their performance.

Office is general shift. It is from 9am to 5am. There may be half an hour to one hour lunch break. Plant works in 3 shifts. Besides wages and remuneration, the following benefits are given to the employees.
* Dearness Allowance * Conveyance Allowance * House Rent Allowance * Washing Allowance * Cycle Allowance * Shift Allowance * Canteen Subsidy/ Tea Allowances * Leave Travel Allowance * Statutory Benefits

PROVIDENT FUND Employee provident fund have three parts. They are: * Provident fund * Pension fund * Deposit linked insurance

The employer provides an amount equal to 12% of employee’s salary to employee provident fund. 8.33% goes to provident funds and rest of the amount goes to pension fund. 5% of his salary to deposits linked insurance.

Company can give bonus in the range of employee salary. KSE is paying 20% of bonus to all employees.

Company allows & sick leaves for non ESI employee. Company allowed 9 days casual leave for daily rated wages and 11 days for monthly rated employees.
Government has notified 4 national holidays and festival holidays. KSE ltd allow all these holidays.

Employee pays Rs.20 per month. The employer also pays 20% per month towards this fund. This is utilized to give loan, scholarship for students of employees etc. On the death of employee one month salary is paid to dependants towards funeral expenses.

All complaints of individual nature regarding payment of wages, wage calculation, grant leave, overtime, work assignment, working conditions, confirmation, transfer, interpretation of service agreement and other compliments of similar nature arising in the course of employment may constitute grievances and the same shall be redressed in a systematic manner.

According to central legislation half month salary for every year service should paid as gratuity on retirement. Company also joined LIC’s group graduate insurance scheme, under this scheme if employees determines to leave before completing his term in office, gratuity will be paid considering his remaining years of work as well.

Trade Union is association of workers formed with the intension to protect workers from the exploitation of employers and also to improve the working conditions.
The main objectives of trade union are to ensure better wages, good work culture and conditions, protection against injustice, labour welfare, peace and collective bargaining. In KSE 3 trade unions are working they are, * INTUC * CITU * BMS


Figure 4.2 Structure of Finance Department

Classification of finance function 1. Money Management 2. Record keeping & reporting 3. Control function 4. Auditing function

Aims of finance function 1. Accruing sufficient funds 2. Proper utilization of funds 3. Increasing profitability 4. Maximizing firms value

Scope of finance function 1. Estimating the financial requirements 2. Deciding capital structure 3. Selecting the source of finance 4. Implementing financial controls

Source of finance
Source means come where the money was come the business there are mainly three source of generating funds. They are: * Share capital * Reserves * Bank loan

Accounts department plays a vital role in any organization. KSE Ltd has an efficient accounting department. The chief finance manager controls all function of this department. The deciding of accounting policy and their implementation is the main duty of finance manager. The main function of this department are making payments and receipts, preparation of books of accounts and income tax return, and controlling all affairs of financial aspects of the organization this department thus makes all payments to provident fund, gratuity, employees welfare fund etc.

Company has 8 core of working capital. In this 6 core in Irinjalakuda plant, 1.25 core at Swaminathapuram and 1.75 cores at Vadagiri. Company keeps as inventory required for production for 20 days minimum stock.

Company pays wages of daily workers in cash while salaries are paid in either cash or cheques as per requirements of employees.

KSE follows the cost accounting principles and procedures. Almost all departments are computerized. All work is done by special application program developed for use of the company. The main aim of the finance department is maximum utilization of fund at minimum cost.

The following are main function of finance department

1. Payment of raw materials
In purchasing raw material 90% of the payment is made on the delivery time. Balance payment is made after checking the quality and quantity of the material. This needs material receives report. Order bill and lab report. It includes item, weight, gross quantity, net quantity etc. If the quality is not satisfactory rebate is charged.
2. General payments
This includes stationary charges, telephone charges, ESI, PF, housing loan, taxes etc.
3. Receipts& cheque collection
This mainly includes sales receipt. The company accepts sales receipts and Payments in the form of cash, DD, cheque etc. Company has accounts with 12 banks. The company avails credit mainly from Bank of Baroda. Company makes all payments by cheque and receives payments by cheque only, if the amount is more than 25000. As per policy LSE Ltd not allow sales on credit.
4. Salary payment
Plant workers will get salary on 6th day of the month and office staff will get salary on 31st of the mount. If an employee needs salary as advance, he can take 50% of the salary another function of finance department is to collect or transfer surplus fund to centre unit.

Since from 1976 KSE has been making steady profits and paying uninterrupted dividend and a yearly 20% bonus to the employees. Another important function of finance department is preparation of monthly profit & loss account. This statement called for all board meeting once in a month. On the basis of quarterly results the company statutory accounts are published in the leading newspapers. Thus the financial future of KSE looks secure and bright.

FINANCIAL HIGHLIGHTS 2009-10 2008-09 Lakhs Lakhs
Sales and Other Income 37227.89 35103.39
Gross Profit 1917.38 1035.39
Profit before Tax 1266.44 500.75
Net Profit before Tax 827.27 320.54
Shareholders’ Equity 3257.45 2803.33
Capital Employed 6419.57 5973.21
Gross Fixed Assets 6956.64 6450.64

Rs. Rs.
Shareholder’s equity/share 101.80 87.60
Earnings/share of rs.10 each 25.85 10.02
Dividend Rate 100% 50%


Figure 4.3: Structure of Producation Department

All functions relating to production is managed by a separate department. The main production of KSE is cattle feed. Production process is controlled by computerized systems using microprocessors. The unit has a well-equipped modern laboratory.

Preparatory section
The raw material (coconut oil cake) is brought here and is cut to size from here oil cake is transferred to the extraction plant through the elevator.
Here, continuous counter current extract is used for extraction. “Hexane” is used as a solvent. Cake is removed in left through the extract while heated hexane at 63-70oC is sprayed on it. It takes 1 hour for the cake to pass through the extract by this time most of the oil cake would have dissolved in hexane. The mixture of oil and hexane is called “Misulla”. Oil is separated from hexane by distillation. Oil is boiled at 3000C while hexane is boiled at 60.2*C. Following this function all hexane from oil is removed. Hexane in gas form is condensed in an condenser and used again. Cake is removed of its hexane by drying in a drier. Before packing this deep-oiled cake a little water is sprayed upon it as hot cake cannot be packed as such.

Using the de-oiled cake, which is a by-product of solvent extraction process, starts steady mixed cattle feed production. Cattle feed is produced, using more than 20 raw materials. The formula for cattle feed production is formulated by nutritionist. The formula will exchange according to the availability of the raw materials. Seasonal fluctuations affect the availability and the price of the raw materials. The important raw material used for this purpose is coconut oil cake, soya bean cake, cotton seed cake, maize, rice, wheat barn, and nutrients etc.

The various raw materials used for production of cattle feed are as follows: * Maize * Tower * Sun flower extraction * DORB * Rice polish * De-oiled coconut cake * Ground nut extraction * Soya bean meal * Tamarind seed powder * Wheat bran/flakes * Rape seed extraction * Ragi powder * Cotton seed extraction * Molasses * Calcite powder * Urea * Salt * Minerals

In the cattle feed production MMCP formula is used, i.e., 4 steps of production process. * M- Milling * M- Mixing * C- Cooking * P- pelleting

Cattle feed is produced in two forms: * Mash form * Pellet form The raw materials are mixed and milled together. Mash form requires only these two processes to make it in the pellet form. The mixed raw material is cooked and converted in to pellet form.


Figure 4.4: Structure of Purchasing Department

The purchase department places an important role because purchasing has its effect on every vital factor. Its function is procure material supplier, and service, machine, and tools at most favorable terms consistent with maintain the desired stand of quality. Purchasing is an important function, because for the purchase of materials a, substantial part of the companies finance is committed which affects cash flow position of the company. The purchase committees make important decision about purchasing raw material for the cattle feed production.
FUNCTIONS OF PURCHASE DEPARTMENT 1. To give order for raw material 2. To ensure continuous availability of raw material so that there may be uninterrupted flow of material for production 3. To contact brokers all over India to know about market price 4. To purchase proper quality of raw material at reasonable standard 5. To ensure weight of the purchased goods and storing it in proper place for easy retrieval and use 6. To develop alternative sources of supply, so that material may be purchased from that alternative source, if a particular supplier fails to supply the material. Purchase of raw material for cattle feed production is an important procedure of purchase department. Therefore, the purchase of raw material is on requirement for production. The raw material is purchased according to the availability and capacity of go down. The nutritionist prepares the formula for the production and the raw material arranged on the basis of it. The formula is prepared on the basis of availability of the raw material.
The other important purchase procedures are placing order, price of raw material, purchase contract and material receipt.


Figure 4.5: Structure of Marketing Department

The vision of the marketing department is to find project and to give tenders according to the marketing condition and on the basis of the previous project in order to get good turn over for the organization and is also the basis for the future trends in the organization. Marketing department can also study the future trends of the economic condition and government policy in order to respond to tenders. The department has to plan whether to go for low cost or high cost. FUNCTIONS OF MARKETING DEPARTMENT * To conduct market survey for the future requirement. * To make detailed survey on the trends. * To maintain the relationship with customer and their agencies * To maintain good relationship with government
Marketing mix
Product, price, place and promotion are the factors of the marketing mix. This four Ps are equally important for the marketing of the product. If any P is weak, the products will be a failure. Marketing activities taken place in KSE involves the market survey. Information is collected from the market through the market survey . in order to know the pulse of the market information is collected from various sources like dealers, distributors, competitors, newspapers, journals and magazine and sales force.
The important marketing strategies are:- 1. Pricing strategy 2. Product strategy 3. Distribution strategy 4. Promotion strategy

Sales procedure The purpose of marketing is to promote sales. The important procedures taken place in the sales division of the department is:- * First procedure is receipt of incident with demand draft * Entering into order book. * Next step is preparing the dispatch plan * Dispatch vehicle is arranged * Delivery order is issued * Weighting before and after loading * Invoicing preparation

Sales of cattle feed Cattle feed id bi-furcates into mash form and pellet form. KSE has an exceptional range of products. Cattle feed in mash and pellet forms are divided according to their quality.
K.S supreme pellet has got ISI mark. De- oiled cake marketed in the name “jersey copra cake” has also feed supplements “KS forte’. Sales of all products are through authorized dealers.

In ex-factory sales all risks are borne by the party from the factory gate itself. In this risk are borne by the company up to parties go down ex-factory sales are common. Customer Induction
It is a difficult process in cattle feed industry. The following methods are adopted by KSE in the various situations. 1. Demonstration/customer education This is intended to give first-hand knowledge about the product to the customers. 2. Samples/ free coupon scheme This method id used as an introduction tool.

3. Trade credit scheme
In this the customer is supplied with a bag for current use. The cost of this bag will collect along with the supply of replacement bag. This put a moral obligation on the part of the customer to purchase KSE product again. The KSE did away this practice; because of technical reason the dealers are encouraged to do so.

4. Door delivery system
In a high competitive market prompt delivery is an attractive one and KSE insist on dealers to follow this method.

5. Exhibition and Mela scheme * Festival exhibitions * Agricultural exhibitions of government * Livestock shows in Wayanad etc. * Diary exhibition – Vetinary college etch

Customer service
The customer servicing refers to the process of understanding the minds and needs of them and solving their problem gracefully. The product of KSE is supplied to all parts of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu and strong in rural marketing .The products are segmented and marketed with
Different strategies in the local areas. The main advantage is that it is cheap to compare with similar cattle feeds of others like Vijay, Godreg and Kerala feeds.
The areas of services are identified as follows;
Medical backup facilities
It is an essential follow up service. The KSE has employed vetinary doctors to find out the effect of each type of cattle feed in each geographical area. This will have a goodwill effect on customers of the feeds. If any area is disorganized soon remedial measures can be taken the earliest.

The KSE has definite counselling plan for all customers.

Redressal cell
Majority of the customer are farmers of economically weaker sections of the society. KSE ltd is concentrating on this point and providing instant redressal to such class of claim.

To impart latest information and to adopt customers with changing trends. KSE publish its own bulletins and leafs lets to the customer in selected areas.

Recognition and training
Every year KSE select few members of customers and give them suitable award like ‘the best cattle power”, “largest milk producing cow” etc. to boost the spirit among the customers. KSE also imparts farm training to selected group of workers.

In modern marketing, customer is the king. Marketing is connecting the link between producers and customers. KSE ltd has effective and energetic sales department. Sales management forms to only one aspect of the whole of marketing.

Function of marketing department: 1. Product planning
Product have the company must have the quality of satisfying the need of the customer. KSE ltd has a vetinary doctor as nutritionist. It is in consultation with nutritionist, marketing department decides on new project.

2. Packing policy
Packing has important effecting sales. A cattle feed is not a customer product. Package design decision involves mainly weight of packing, convenient to the customer. Recently small package of 10 kg is introduced for convenient sales.

3. Pricing
Price is fixed on the basis of availability of raw material, transportation cost, and storage and distribution charges. KSE has adopted a competitive pricing strategy

4. Market survey
KSE ltd has % supervisory agencies throughout Kerala and they give feeds back about the market and customer attitudes toward the product. Based on the survey, KSE makes suitable modifications on product and marketing channels.

5. Some promoters are considered before giving fresh dealership
They are, * Social status * Financial backgrounds * Trust worthiness

6. Sales procedure
The purpose of marketing is to promote sales. KSE ltd makes an order incident book. This includes date, name of the product; amount etc. so the dealer can mention the product and its quality then sales department will sends delivery order to go down stock given to dealer after security clearance.


Figure 4.6: Structure of Quality Control Department

Objective of quality control department * To take necessary steps to maintain the quality of products * To take different measures to improve the standards of products * To achieve a better quality level and better conformity of quality KSE has developed a tradition of trust. An on-going improvement in manufacturing process plays a vital role in ensuring high standards. KSE has adopted mechanized production and computerized quality control in its operation. QUALITY CONTROL ACTIVITIES Quality control activities are mainly at three stages: * Incoming raw material * Production process * In finished goods Raw material must maintain its specification. It must contain required quality of protein, fat, moisture etc. Any increase or decrease in these items wills adversely affects the quality. Before using for production process the raw material are checked in company’s lab for good quality input. The formula for the cattle feed production is formulated by nutritionist. This formula includes all specification needed for the product. Only the purest and best raw materials find its way in to the factory. Well-equipped laboratories under the expertise of scientists, continuous supervision by experienced nutrition specialists and the assimilation of international developments. In the field of animal nutrition, KSE has an edge in product development and quality.


In the company stores department is divided into two

1. General Store 2. Go down

Figure 4.7


1. Identify the material that has reached the recorder level. 2. Storage and proper keeping of the materials. 3. Issuing material to the customer department. 4. Stores all data regarding the storage and supply of raw materials in the computer. Computerization of this department helped the company to save a lot of time and eliminate various records like storage holder.

Storage consumption department

It is prepared by the store keeper and sends the account department for recording it in the profit and loss account. The consumption of material by each department is shown in this department.


STRENGTH * Experience in the field over 37 years. * Leadership in the Cattle feed Market. * Reputation and brand image of the company for the quality of its products. * Good network of dealership in South India. * Fully computerized plant as compared to the technology used by other manufacturers, KSE has got upper hand. * Good employer-employee relationship; good employee welfare programs and benefits like gratuity, allowance, bonus etc.

WEAKNESS * In adequate promotional activities for dairy products, company is giving more priority to the promotion of its cattle feed products. * Employee overhead is high as it is a public limited firm. * Limitations of Management; role of trade unions.
* Financial strength of the company leading to better purchasing power. * Exemption of value added tax on sale of cattle feed, de-oiled cakes and coconut oil enabling the company to effectively combat with the competitors. * Expanding its distribution areas. * Adequate infrastructure can be made available for the production of other animal feeds.

THREATS * Competition from other manufacturer of organized and unorganized sector, e.g. Kerala feeds. * Probable entry of multinational entities. * Upward revision of fuel price increasing the price of ingredients manifold. * Granting of subsidy on animal feed by the Government selectively avoiding private manufacturers. * Indirect control of Government over price of milk. * Stagnant numbers in cattle population affecting market growth in future, as cattle rearing are still not very economical. * Import of cheaper oils leading to fall in demand for solvent extracted coconut oil.
* The price of several ingredients has doubled during the last 2 years. * The oil cake processing has marginally improved compared to previous year. * There is adequate internal control system so as to ensure safety to its assets against loss. * The company is now catering the Tamil Nadu market also. * In Diary division the milk operation are carried out at a lower level so as to meet requirements of milk and cream for production of Ice-cream with true quality. * KSE ltd to give more importance to its marketing activities so that they can tap the potential and future market * The concerned authority should spend the time to hear the suggestions of their employees and consider their innovative ideas seriously for the development of their company.

SUGGESTIONS * The company should pay more attention to the markets outside Kerala. * Customer retention measures should be enhanced. * Company can earn more profits by expanding its diary market. * Use TV Advertisements to promote the products.


KSE is the brand leader in the cattle feed, where ever its products are available. The ever increasing popularity of KSE is range of high quality products. They understand the need and preference of the customer. KSE has always been at work to provide the right product, at right price. KSE enjoys the brand loyalty and sizeable share of market, especially in the home state, Kerala.
This study always also gives an idea about the performance of the management functions which leads to success. The management practices gave the real picture of the functions like planning, organizing, staffing, controlling, coordinating, etc. The social responsibility of the management, business ethics, strategy, decision, organization development techniques etc. gave the image of the professional management of KSE ltd.


• Annual reports of KSE ltd
• KSE Newsletters and booklets
• Marketing review- magazine

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