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Organisational Study in Kse

In: Business and Management

Submitted By mejojonny
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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 are 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 Kerala Solvent Extractions LTD, IRINJALAKUDA.

• To study about the organization.
• To study the various departmental function in the organization.
• To study how information is used in the organization for decision making.
• To study what are the key business process are carried out in the organization.

This study helps to understand how key business are carried out in an organization and also familiarise the various departments and its functioning, plans and policy of the organization.

• The secondary data obtained from the managers may be biased.
• The researcher being a student has limited experience in the business field.
• The study mainly used secondary data for analysis since the time allotted was very short. INDUSTRY PROFILE

The Indian feed industry is about 35 years old. It is mainly restricted to dairy and poultry feed manufacturing; the beef and pork industry is almost non-existent. The quality standards of Indian feeds are high and up to international levels. Raw materials for feeds are adequately available in India. The industries production is about 3 million tonnes, which represents only 5% of the total potential, and feed exports are not very high. The feed industry has modern computerized plants and the latest equipment for analytical procedures and least-cost ration formulation, and it employs the latest manufacturing technology. In India, most research work on animal feeds are practical and focuses on the use of by-products, the upgrading of ingredients and the enhancing of feeding practices and the use of compound feed.

The solvent industry has achieved a phenomenal 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 in 1945. It had to struggle more than 20 years to establish it.

In the year 1960’s there was the crisis in the coconut oil extraction industry in Kerala. After the conversation from wooden ghanis to rotaries the cost of the production had increase 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 was thriving, in Kerala it was struggling. So they understood the need for modernizations of their mills. At that 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.

Cattle feed practices are very traditional. Farmers choose their own ingredients and prepare their own formulations, believing that these means they are able to pay more individual attention to their cattle. The productivity of the cattle is limited because of their poor genetic make-up, so high quality compound feed may not necessarily generate a significant improvement in productivity and this has hampered growth of the cattle feed industry because most farmers are reluctant to use compound feed fully. Instead they compromise by using such feed in proportions of 5 to 60%, making up the balance with their own formulations. It is only in the case of highly productive animals that compound feed has been able to show its real potential and the importance of technology has been demonstrated. The share of compound cattle feed manufacture by the industry in relation to the overall potential, is low for the following reasons:

• The cattle population is fragmented and spread over large parts of the country. Farmers’ low level of education and strong traditional beliefs mean that there is generally little awareness of compound cattle feed.
• More 50% of the country’s total milk production comes from a very large number of low yielding cows and buffaloes. A further 25% of milk production comes from buffaloes and only the remaining 25% of total is produced by crossbreed and improved cows.
• Industrially manufactured compound cattle feed has proved its value for cross-breed cows and buffaloes but not for low yielding cattle because of their genetic limitations. Home mixed feed is very frequently used for buffaloes and low yielding cattle.

There are 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 to 5% oil, is generally used for industrial purposes 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 1996 KSE Limited enters the cattle feed industry, setting up the new plant for manufacturing ready mixed cattle feed. The last three decades KSE has 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.

The Indian feed employs the services of qualified nutritionists. Members of the industry have their own analytical laboratories and either have their own research and development facilities or have access to the research laboratories of agricultural universities or government institutions. The industry is fully committed to quality and their technical staffs are knowledgeable about the nutrition of cattle, buffaloes, layers and broilers. As well as the normal proximate principles, other analysis are regularly carried out, such as amino acids, aflatoxin, and ochratoxin, castor, tannins and urease activity. There is a high degree of awareness of feed microbiology among the millers of feed. Raw materials and finished products are subject to microbial counts, Salmonella and Escherichia coli testing and mould count, and contaminated materials are rejected and sometimes destroyed. Insurance cover is available. The feed millers have acquired the latest technologies and modern equipment such as high pressure liquid chromatography (HPLC) and near infrared analysers (NIR). All vitamins, minerals and other feed additives are regularly analysed using modern analytical techniques. Regular seminars are conducted, short term courses are arranged and Indian scientists are constantly working to upgrade the quality of Indian feed and make it completely safe for animal feeding. The quality of Indian feed can be compared with that of any western feed. Today it is common to achieve a chicken house average of 310 eggs in 52 weeks, in layers and body weights of 2 kg in less than six weeks, with a feed conversion ratio of between 1.8 and 1.9, in broilers. Diary feed can use the genetic potential of Indian cattle at its maximum. The quality of Indian feed is satisfactory and innovation will continue.

In the past, the cattle population was in proportion to the amount of resource available to feed them. But today things have been changed and the natural feed available for the cattle has also come down drastically. In addition to this the demand for milk and milk products have also been increasing, thus making it absolutely necessary for the rearing cattle which produce high yield. From this arose the concept of producing a cattle feed wherein there is no compromise over the nutritional composition.
In Kerala the rotary cake was used as a cattle feed and actually this oil excessive oil on cake reduced the quality of the cake and upset digestive system of cattle. In foreign countries, the cattle feed only de-oiled cakes and according to the diary expert, the milk and the fat content of the feed. All these factors stressed the importance of having few cattle industry in the state. The productivity of the cattle is limited their genetic makeup, so high quality compound feed may not generate a significant improvement in the productivity and this has hampered growth of the cattle feed industry because most farmers reluctant to use compound feed. They compromise by using such fee in proportion 5% to 60% making up the balance with their formulations. It is only the case of highly productive animals

CLFMA was formed in June 1967 as an association of feed manufacturers and associated industries such as ingredient suppliers, importers, feed additive manufacturers, consultants, hatcheries, milk cooperatives and feed machinery manufacturers. The objective of CLFMA are to promote the concept of nutritionally balanced compound feed; to promote, to assist, to organize and coordinate scientific research in the field of animal nutrition; to conduct, to assign and circulate information related to animal feed to its members and government, to offer suggestions to government in formulating policies and to impart training to livestock farmers, feed mill personnel, veterinarians & others.

Standardization and regulation of animal feed manufacturers and already mentioned, BIS has produced guideline feed standards and the industry also has its own guidelines. Currently there is no compulsion to use BIS standards, but the central government has been advising states to introduce their own registry standards. The industry however is resisting this move. One of the major reasons for opposition is that the government want to legislate regulation under the essential commodities act 1955 which is considered draconian and totally inappropriate in this context. There is no shortage of compound animal feeds anywhere in the country. In fact, the organized sector of the compound feed industry is facing serious problems resulting from a huge ideal capacity, to the extent of 50% or more. New capacities are being added by global players in the feed business and by national and international integrators. The nature of animal feeds and the animal feed industry has completely changed. Increasingly, products, including new products are being excluded from the purview of the essential commodities act 1955. Major raw materials for compound animal feeds such as ground nut, soybean, rapeseed and sunflower meals and cottonseed and rice bran extract, which are exported, are not covered by the act. Therefore there is no reason to cover the animal feed manufactured with these raw materials. Furthermore, the industry has several reservations about implementing BIS standards. There is a lack of flexibility in these standards and they are lagging far behind the industry products. For cattle they have been revised for 30 years, while the BIS standards for poultry are absolute. Another feed standards issue that worries both the government and industry is that any changes to existing standards will be slow and difficult to arrive at because of participative conflicts and various lobbying groups. COMPANY PROFILE

It was in 1963 Kerala Solvent limited now known as KSE Ltd. Entered the solvent extraction industry, setting up the very first solvent extraction plant in Kerala. But inefficient crushing method and competition from the modernized oil mills elsewhere shattered at coconut oil industry in Kerala in early 1960’s.The traditional oil in the state facing a declining trend. When oil industry in other parts of the country was thriving, in Kerala it was struggling. So they understood the need for the modernization of their mills. It was the part of the package programmed to revive the coconut oil industry in Kerala that oil millers of Irinjalakuda and surrounding places formed themselves into a corporate body to start a solvent extraction plant which were used in Bombay mills. Dr P.S. Lokanathan committee was set up to study the feasibility of setting up fruitful industries in Kerala. This committee soon recommended the establishment of 3 solvent extraction plants .One of them to be set up in Thrissur district. Thus the oil millers in Thrissur district took initiative and set up a new plant in Irinjalakuda and the company known as Kerala Solvent Extractions Limited formed. And the other two are Koyenco solvent extraction Pvt Ltd at west hill, Kozhikode district which started production in 1984 and Anand oil ltd at Perumbavoor which started in 1991. Although Kerala produce 80% of total copra produced in the country, large part of it was sold to other states as copra itself and they were earning good profit when mills in Kerala was not able to get enough copra for their daily needs. When oil industry in other parts of the country was thriving, in Kerala it was struggling. So they understood the need for modernisation of their mills. At that time Dr P.S. Lokanathan committee set up to study the feasibility of starting new industries in Kerala, recommended the establishment of 3 solvent extraction plants and strongly argued for starting one of them in Thrissur district. The oil mill owners I and around Irinjalakuda, who were thinking in similar lines saw the opportunity and took the initiative to establish a solvent extraction unit. Thus KSE Ltd. was born on the road to success, there were many hurdles. Initially, the mobilisation of capital posed the greatest challenge, the future looked grim. But determination and optimism paid it off. The solvent extraction plant was set up to manufacture ready mix cattle feed which was pioneering setup .Since there was no looking back.

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 upliftment and constantly strive from excellence in all spheres of our activities.

• To become a market driving company from market driven company.
• Educate and train the livestock frames to practice scientific feeding to optimise livestock productivity.
• To support the development of knowledge based network on the feed related activities.
• Build culture of innovation and creativity amongst the employees.
• To be an active partner in the community development programme.
• To add more ice-cream production units across Kerala in coming years.
• KSE, with a capital base of 36 crores embarks on an expansion to double its solvent extraction capacity and add a most modern eco-friendly vegetable refining plant.

KSE Ltd operates cattle feed ants in Kerala, Karnataka and Tamilnadu. Diverse location of plants enables KSE Ltd. to quickly reach its distributors spread across the three states about 600 distributors, most of whom are exclusive distributors of KS cattle feed. KSE Ltd. Brand-KS commands a good brand recall due to the company’s continued focus on quality, after sales service and awareness program. KSE Ltd follows a process of collective decision making within the organization. The key second line management personnel along with the board members take important decisions which shape the future course of business. As a norm, KSE Ltd has one board meeting at the end of each month. A commit of key second line management meets once in a fortnight to review the company’s performance to present it to the board in the board meetings. Proposals are accepted or rejected after much debate and deliberations among the members and the key management personnel. Such extensive processes ensure cohesiveness of decision making but may sometimes compromise on the speed of decision making. Over all, corporate governance at KSE Ltd present good practices supported by a strong and fairly independent board. Company’s corporate governance practices are adequate and it meets the minimum required levels.

• 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 the manufacturing of by-products there from and the traders commenced here with
• 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, electric meters, pipes shafting tin plate punch machines and other machines.
• To purchase, manufacture, treat, sell or otherwise deal oil cake, washing soap, hair oil and tined products etc…

Redlar conveyor is used in the intake section to convey the raw materials in to the plant. Screw conveyors are also used from dumping points inside the raw material godown. The raw materials then lifted using bucket elevators and fed into a rotosieve. In rotosieve or vibroscreen separation of grindable and non grindable is done depending on the size of the material. The grindable materials are fed into the grinding bin and then to the hammer mill wherein flakes are ground to the required sizes. The ground materials are again elevated to the top by the distribution conveyors for storing in silos. Thus each material is stored in bind. 18 bins are set on the top for storing different materials. The storage capacity of each bin is 3.5 to 4 metric tonnes. Normally, each brand and batch of ready mixed cattle feed requires 13 to 18 types of raw materials. The ratio or formula of the raw materials used in a particular batch of the cattle feed depends upon the availability of raw material and also on the brand of the cattle feed. In this plant, by one batch of the product, it means one tonne of the cattle feed. Every raw material is not used to produce all brand of cattle feed. So the formula varies in accordance with the changes in the formula prescribed by the nutritionist of the company. The formula is entered into the computer and each raw material is taken individually from the storage silo into the weigh hoppers where they are weighted. The filling and weighing of the required quantity of raw material is done in 4 minutes for each batch. If the actual weight in the hopper is increased or decreased by more than the set limit, an audio alarm is initiated on the computer and the system goes to the next step only after getting the concurrence from the in-charge personnel. A variation in weight of +/- kg normally allowed. The total weight of the raw materials in the weigh hopper varies from 920 to 950 kg. After the weighing is over, the weighted batch is discharged in the batch mixed 30 seconds. In this mixer, the entire batch is mixed thoroughly adding some minor ingredients such as salt etc. the mixing operation takes 5 minutes and this time can be adjusted to the required level using the computer. After fixing, the material is taken into the pre molasses storage bin, it is discharged into the molasses mixer, wherein molasses is sprayed to the required quantity and mixed thoroughly. From there, the finished product is conveyed to the godown through a slat conveyor. The plant produces cattle feed in both mash and pellet form, from the molasses mixer, the material to be pelletized is taken to the pelletize bin, where the feed is preconditioned with steam. Then it is pelletized using pellet mill. The hot product is cooled using air bowed cooler and conveyed to the bagging bin and bagged. Since the above additional process is needed for the production of pellet-type cattle feed, the pellet form cattle feed is more costly than the mash form of cattle feed. This plants take an average of 135 minutes to complete a batch of cattle feed i.e. from the time of inserting raw materials to the bins, to the time of bagging. After producing 5 to 7 batches of cattle feed of some type, the computer operator changes the type of producing cattle feed.

The management of KSE limited rest on an eminent team of personalities from cultural, financial and social streams of society. The day to day management of various units are carries out by experienced professionals under a chief general manager, who lead and motivate a dedicated work force. KSE ltd is public limited with its shareholding numbering to 9000 and majority of them actively participate in the general body meeting showing good interest in the affairs of the company. The company is having 11 directors of which 10 are elected from among the shareholders and one nominated by the KSIDC. Every year 1/3 of the directors retire by rotation on the basis of seniority. The articles of association of company empower the board of directors to appoint one of them as managing director. The MD, executive director and chairman are responsible for the day affairs of the company. There is a whole time director to look after the affairs of the cattle feed plant in Palani. The major decisions with serious matters are taken by the executive body consisting of the MD, the whole time director, the GM, the finance manager, the nutritionist, the marketing manager, the plant manager and the purchase manager. All these executives are professionally qualified and competent to make any decision benefiting the situation. Usually the executive body meets ones in every fortnight to discuss and evaluate the matters internally and externally affecting the company. Decision is taken according to the urgency and importance. The relation between the management and employees remained through discussion and consultation on matters of common interest for mutual acceptance and keeping high standard of goodwill.
KSE Limited has been promoted by the persons traditionally engaged in the business of oil extraction, trading in cattle feed. The promoters are well known for their quality products. They 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)

• K.P. John
• T.C. Mathew
• P.D. Anto
• Dr K.C. Vijayaragavan
• John Francis K.
• T.R. Raghulal

• Anand Menon

• R. Sankaranarayanan

• M/S Varma & Varma
• Chartered accountant
• ICICI bank limited

• KS (one of the all times favourite in the cattle feed)
• KS SUPER (A special cattle feed that has won immense popularity)
• KS DELUXE PELLETS (the choice of caring farmers for better results)
• KS SUPREME PELLETS (A bypass protein feed with ISI mark. Specially made for cattle with superior germ plasma and high production potential)
• JERSEY (protein rich, tasty, de-oiled coconut cake)
• KEYES FORTE (An invigorating feed supplement for cattle)
• KS SUPREME (Refined sunflower expeller oil)



• Kerala’s premier solvent extraction plant
• The Solvent Extraction Association Of India – SEA India, award in 2009 and 2010.
• No.1 in cattle feed production in private sector
• Winner of Tamilnadu productivity council
• Winner of Kerala productivity council
• Recognition from animal nutrition society for contribution in cattle feed manufacturing
• Best productivity performance for cattle feed in India and award from the national productivity council continuously for 10 years from 1997.
• Entrepreneur award from the college of veterinary and animal sciences.
• “Top cattle feed award” for afflation free feed from “ The Indian Association Of Veterinary Pathologist” and Kerala Agricultural university.


The depart mentation helps in specialization of work in each field. It helps in better planning and better concentration in the particular work handled by a particular department.
The various departments are as follows:
1. Production department
2. Marketing department
3. Store department
4. Quality department
5. Finance department
6. Purchase department
7. Human resource department Each department performs its function separately. The purchase department deal with all the purchase activities relating to the company. The production department manages the production function. The quality control departments check the quality of the product. The marketing department handles the agency works, advertisements, price and other functions. The personnel department performs the functions relating to the employees of the organization. Finally the financial department deals with all the all the financial data relating to the company like profit and loss, dividend rates, share price. Future financial requirements etc… it is essential to maintain a good connection with all departments each other. An organizations entire work will be divided depending upon the types of departments it carries. All the departments carry different duties so that the organizational goals can be achieved easily. But workings of departments are not that easy, each department have a head of department and employees assisting him. The departments make the duties of manager easy and accurate.


Production and operation involves the conversion of input to output through a transformation process. As the complexities of business grew, management of the system responsible for the production become essential. Later even services began to be produced and rendered. These were intangible, so some principle were needed which could encompass the entire systemthat produced a good or delivered service. Mr Anil is the head of the production department (works manager). There are 250 employees in production department. This plant’s personals include shift engineer, plant operator, one assistant plant operator, six plant attendees and godown workers.
Following are his responsibilities:-
• Co-ordination of activities pertaining to selection, training, motivation and performance appraisal.
• Review of nonconforming products.
• Production progress monitoring.
• Ensuring updating of standards and codes pertinent to process, process controls safety and environment.
• Controlling process specification.
• Identifying inspection, measuring and test equipment in co-ordination with laboratory.

Office is general shift. It is from 9 AM to 5 PM. There may be half or one hour lunch break. Plant works in 3 shifts a day. In a shift, 26 workers are working. Employees use a mask as a safety measure from dust and other practices. Normal working time is 8 hours and the employees work overtime in KSE Limited. Company gives double wages as remunerations for those who do over time. It depends upon the time they work. The employees are provided with two pairs of uniforms every year and it is replaced once in a year. Employees work in teams.


The machine and equipment are purchased from Baroda and Germany. They are as follows:
• Tanks and silos for raw and auxiliary materials storage.
• Material screen and shaker.
• Hammer
• Blender, Boiler
• Weighting machine
• Bagging machine
• Dust collector
• Product tank
• Pellet producing machine
• Tanks for oil cake and molasses.

1. Milling
This is being used for ensuring that all the granules are grinded, screened 3mm sieve. The material feed into grinder, is powered and it passes through the screen provided at the bottom of grinding chamber.

2. Mixing
The raw material will be mixed thoroughly by using horizontal mixer. Capacity of this mixer is 6 m.

3. Cooking
The steam for cooking is produced using 3 million tonnes boiler. The mixer or homogenizer carry out a strong mixing while the mash is moved forward and added with dry saturate steam. The cooking is carried out a temperature of 80 degree Celsius
Using a high pressure dry saturated steam.

4. Pelleting
The pellet mill dye by rotating drags the mixture of mash and stream towards the roller. Which press it and consequently compel to pass through the hole of the dye. It increases the density of the mixture, which together with heat generated by the saturated steam facilitates the extraction of the pellet.

CATTLE FEED PLANT AND REFINING PLANT In the cattle feed plant the company uses different types of cake. According to their availability apart from other material the company uses coconut cake, sun flower cake, mustard cake, soybean, wheat, calcium, vitamins, cottonseed, phosphate, tapioca, maize, jowar and other vitamins. Except from the coconut cake all the materials are purchased from other states. 24 hours production takes place here and it produces around 650 tonnes a day. In the refining plant the by-product from the cattle feed manufacturing is refined according to the seasonal demand. 20 tonnes of refined oil can be made in a day in this plant. The oil so produced will be colourless and odourless, so it is not used for household purposes. The main users of this oils are some hotels and oil millers.


• KSE Ltd Irinjalakuda Unit (KERALA)
• KSE Ltd Vedagiri Unit (KERALA)
• KSE Ltd Palakkad Unit (KERALA)
• KSE Ltd EdayarUnit (KERALA)
• KSE Ltd Konikkara Unit (KERALA)
• KSE Ltd Koratty Unit (KERALA)
• KSE Ltd Swaminathapuram Unit (TAMILNADU)
• KSE Ltd Thalayathu Unit (TAMILNADU)
• KSE Ltd Erode Unit (TAMILNADU) The main role of production is to turn inputs (raw materials) into outputs (finished goods). Outputs refer to a finished product or service and inputs are the materials that are needed to manufacture certain goods. When a business completes this process they are able to achieve customer satisfaction by producing products that are ready to be used and fit for purpose. So those are the information regarding the production department. The production of cattle feed in KSE is totally automatic. They are using a German machine in the process of production. There is one shift manager in the production department and some employees to look after the entire production process and a maintenance team who is ready to do any repairs due on the machine. The company follows batch production system. It is offering wide varieties of products. The price will be depending upon the quality of the product. The production department is the functional area and is responsible for turning inputs into finished outputs through a series of production processes. The production processes are the various stages of production that turn raw materials into finished goods. Although businesses such as bank, insurance companies and internet service providers do not supply physical goods that can be seen or held, they do have to organize their resources to meet customers’ demands as completely as possible. As the production system is fully automatic it saves more time in production and brings out more quality. The production process will carried out under the strict supervision of the shift manager. The production process starts from receiving the raw materials in the conveyer to packing the finished goods and sending according to the order. So this is how the production department really works.


Marketing is the most vital and dynamic part of all contemporary business activities. KSE Ltd is based on consumer products. Today Kerala and Tamilnadu comprises the largest market for KSE cattle feed. KSE is the brand leader wherever its products are available. It provides right product at right price.


Parties who have ordered the product with DD are entered in the order book. The order book will show the name, address, products ordered and despatch date of the parties. Four copies of the delivery order is made in order to keep each copy in running files, godown files, sales book, and one copy will be sent to the officer for checking the bill from godown section. Sales department prepares another bill called ‘intimation bill’ which is prepare in 3 copies. One is kept in the running files and rest two are given to the drivers. After getting the load, dealers will sign the bill and drivers bring them back to company.

Two types of delivery rates are available in KSE. One is Ex-factory rate and the other one is Ex-there godown rate. In the later type company delivers products in the dealer’s godown on company risk. There are 5 field staffs across 14 districts of Kerala. Any problems or complaints from the consumer’s side are dealt through these field staffs. Over 600 dealers ensure that he KS range of cattle feed is available to them at a lower price. For getting the KS products the party has to pay a security of 10000 rupees in advance.


It is headed by the assistant manager. All the dealers are controlled directly by the company. Order from various parts of state is received by the company through the dealers. In consultation with the production managers of various plants the assistant manager will make allotment. It depends upon the availability and proximity to the dealer. The manager at the sales division informs the production manager about the demand for the various products so as to plan production accordingly


KSE Ltd follows cost based pricing policy for the cattle feed products. As the company has got the market share of more than 40% in Kerala which makes the KS cattle feed the market leader they can go with the cost based pricing policy. The major competitors are Godrej and Kerala feeds.
Dealer price = cost price + Tax
MRP = cost price + commission + Tax

KS Ordinary 57 730 10%
KS Special 50 627 10%
KS Super 60 796 10%
KS Deluxe 70 936 10%
KS Premium 50 660 10%
KS Deluxe Plus 50 650 10%
KS Supreme 50 736 10%

• Advertisement
Company uses visual medias like clothe banners, wall painting, dealer boards, stickers and in radio channels.

• Field staffs
Company has field staffs whom contacts the dairy farms, farmers etc…and take new orders from them.

• Seminars and cattle shows
KSE provides valuable advice and instruction regarding animal husbandry and cattle feed to the villages. The company conducts and participates in the seminars and cattle shows at different cooperative dairy societies. The company allows its customers to visit the plant and clarify their doubts.

• After sales services
Complaints from various parts are clarified by the help of its dealers and the field staffs in a very fast way.

Severe competition exists in the cattle feed industry. Cattle feeds are widely used in the southern states for cows and buffaloes. This make the competition tougher. But the various marketing strategies followed by the company helps to secure a major share in the market. Following are the major competitors in the cattle feed industry:
• Kerala Feeds
• Mysore Feeds
• Prima Feeds
• Godrej Feeds

While the raw material price showed a steep increase, Kerala Feeds, a state run entity, has refrained from increasing cattle feed prices proportionately. So, the price for Kerala feed’s products became cheaper than KSE’s cattle feed in 2007-2009 time period. At that time Kerala Feeds enjoyed maximum market share while KSE’s demand stagnated.
KSE has markets in: KERALA & TAMIMLNADU

The company is not giving much importance to the marketing segment as their advertisement is not large enough, but the fact is that they have 40% of the market share in Kerala. The major thing is that the organization is not getting super normal profits to spend more on the advertisement but they provides the quality cattle feed than any other companies providing in Kerala so they have good demand for the products they offer. Even though they are facing tough competition from various other organizations the customers of KSE cattle feed prefer to continue on the same cattle feed as they know about the quality of product which they are getting from the company. These are the major things in marketing department.

Store is a place where all the material required for the production are stored. The store keeps all the mechanical spare parts, company broachers, hand gloves and etc… materials are issued from store to various departments on the reception of requisition letter duly signed by the authority. If the stock of material is less than the minimum required quantity, the store clerk gives purchase requisition to the store through the works manager. On the receipt of the material he enters it in the system. He also updates on the issues of the materials. So the system quantity and the physical quantity will be the same. The officer in charge of the general store is store keeper. The store keeper is responsible for identifying the materials that has reached the ordered level and is responsible for its storing. The main item purchased and stored here are spare part of machinery, packing material, belt chain and other miscellaneous articles. Store issues the material to solvent plant, cattle feed plant, refinery plant and to some other department.

• Identifying the material that has reached the reorder level.
• Storage and proper keep on material.
• Store all data regarding the storage and supply of material in the computer. Computerization of this department has helped the company to save a lot of time and eliminate various records like storage leader.

Thus the stores manger has to carry out the following duties to make store department effective:
• Receive incoming goods
• Supervise unloading of material Count, tally
• Check for damage/shortage and prepare report
• Fill Goods Inward / Day Book/ Daily Collection Register
• Complete Vendors Consignment Note (Challan)
• Arrange for inspection and complete the inspection
• Prepare Goods Receipt Note (GRN)
• Prepare Goods Rejection Memo (in case of goods rejected)
• Send goods to stores
• Send other documents to respective departments
• Ensure all storage facilities are in proper working order e.g. check for loose racks, damaged pallets etc.
• Ensure good housekeeping (i.e. check for spillage of oils, dirty walls, obstructions).
• Ensure all materials handling equipment are in good condition
• Check and count goods before issue
• Make entries Bin/Kardex (stock) cards promptly
• Ensure Receipts and Issues are correctly documented
• Ensure that rules and regulations relating to physical custody and preservation of stores are followed
• Ensure correct accounting of stores STRUCTURE OF STORE DEPARTMENT

It is a full-fledged department functioning itself under marketing department, to become an exclusive dealer of the company. Company sees that the dealer’s agency would be 5 km away from other KSE agencies. Market study with the help of the sales representatives will be undertaken. The stores consumption statement is prepared by the store keeper and sends to the account department for recording it in the profit and loss account. The consumption of materials by each department is shown in the statement. The store department carries out many functions as stated above. They are maintaining records about the store to avoid the problems. So when they get raw materials at first they send those materials to the store to maintain the stock level. The raw materials are ordered according to their needs and those materials which are received in the store will be stored in their places. When one raw material becomes low then the shift manager will be able to understand that a signal will be displayed in the computer system. So they will be able to understand the products which have to be purchased soon. Like this all the products stock level will be displayed in the computer system. The raw materials for the cattle feed is coming from many foreign countries and sometimes it will take about days to reach those materials so the store department will have to plan the consumption level accordingly. The next thing is that store department not only do the storing of materials but also they know how to preserve the stored products. And it sends the required amount of materials for the production process. Periodical checking of stores is done by the stores department in every six month. Checking is done by checking physically each and every item in the store. A written report is given to the management once in every month and this report contains the value of materials also. The store is handled through the required department personnel. There is no separate device for store handling. The required departments prepare the material requisition or issues slips and submit to the general store keeper.


Quality is something which every customer looks for a product. Stringent quality control is maintained at every stage that is in raw material procurement, manufacturing, packaging which translate into healthy product and customer. KSE Limited has developed a tradition of trust, ongoing improvement on manufacturing play a vital role in ensuring high standard. For long, KSE Ltd has adopted mechanized production and computerized quality control in its operation.

Only the pure and the best material make its way into the factories. Well-equipped laboratories under the enterprise of scientists, continuous supervision by experienced nutrition specialist and the assimilation of international development in the field of animal mutation gives KSE an edge in product development and quality.

• To take necessary steps to maintain the quality of product.
• To take different measures to improve the standards of the product.
• To achieve a better quality level and better uniform of quality.
• Moisture
• Crude protein, crude fibre
• Acid insoluble ash, calcium

In this plant the raw material used is coconut cake. There are many quality tests conducted to check the quality of material. Air over method is used for identification of the percentage of protein. So X method is used for determination of percentage of crude fat. The raw materials are randomly selected and if it is defective it would return to supplier and if the supplier has got any dispute regarding the credibility of company’s laboratory, the company will send sample to the independent labs. Final statement is made according to the lab report. After the production of feed quality test is conducted again. Quality is the factor, which helps the company to sell all its products.


Following are the three stages of quality control:
• Incoming raw material
• Production process
• Finished products. FINANCIAL DEPARTMENT

Finance is regarded as the life blood of business in modern money oriented company. Finance is one of the basic foundations of all kinds of economic activities. It is the master key, which provides access to the entire source being employed in manufacturing and merchandising activities. Finance plays a key role in all activities of business. it may be defined as the service of money. It deals with principles and of administrating it by those who control it. The success of finance function depends on how finance is planned at the various levels of administration under the management.

Net worth of the company during 2012-2013 is 4069.50 lakhs. Its share are listed in Mumbai, Chennai, Cochin and National stock exchanges. The total turnover during the year grew by 29% more than the previous year turnover. But the profits of the company is going down as they give more importance to quality. Company keeps books such as purchase daybook, sales daybook, cash book and bank book. In the preparation of accounts the applicable accounting standards have been followed along with proper explanation relating to material department. In-house software supports the financial department for preparing the books of accounts. Company prepares budget annually. While preparing the budget, company collets various opinions of the head of each department. They compare the budgeted balance sheets and the actual balance sheets and present it to the board of directors. The company’s investment is 10 crores and the payback period was 5 years. The company obtained Rs.7077500 as capital reserve from state government. Company prepares monthly income statement and submit to the board of directors. Company has an account in ICICI bank with an overdraft facility of 30 crores.
• To maintain a good financial structure.
• To identify the future financial requirement.
• Accurate dividend and salary payment.
• Proper collection of cheque.
• Receipt
• General payment.
The share capital of the company comes to 320lakhs from around 6500 share holders. Its shares are listed in Mumbai, Cochin, National and Chennai stock exchanges.



Purchase department purchases and 90% payment will be given against the order at the time of delivery and the remaining is paid after checking the quality, this will require material received report and bill of lad report. If the quality is not satisfying then they will charge rebate.

Dividends are paid as interim dividends and as final dividends. The share value is about 200 rupees now. Festival gifts are also given in the form of cash. Profit and loss account will be prepared monthly and it is published quarterly in the news papers.

The company has accounts in 12 banks across the state. They keep huge amount of money with the Bank of Baroda. And the same bank provides big financial help to say several crores of rupees. Accounts in KSE Ltd are prepared under historical cost convention on accrual basis unless otherwise specifically stated in notes to the accountant.


The total turn over of the financial year has showed a growth of 28%. This means the company is selling more products. But the profit of the company has reduced by the half of previous years profit. As the company is giving more importance to the quality of the product which they offers they are not worried about the profit. The net profit of the company for the financial year is 465.30 lakhs.

A. ASSETS 2012 -2013 2011 - 2012 2010 - 2011 2009 - 2010 2008 - 2009
1. Net fixed assets: Gross fixed assets Less depreciation 8078.29
4133.84 7308.62
3725.22 7194.27
3410.49 6956.64
2962.55 6450.64

3944.45 3583.40 3783.78 3994.09 3837.41
2. Investments 7.50 7.50 7.50 407.61 7.50
3. Long term advances and current assets 5580.35 5046.59 3919.18 3277.43 3270.41 Total assets 9532.30 8637.49 7710.46 7679.13 7115.82


1. Secured and unsecured loans 2994.24 2622.47 2525.16 2923.18 2999.08
2. Other liabilities 2468.56 2043.84 1849.95 1498.50 1313.41 Total liabilities 5462.80 4666.31 4375.11 4421.68 4312.49

C. NET WORTH(A-B) 4069.50 3971.18 3335.35 3257.45 2803.33


1. Share capital





2. Reserves and surplus 3749.50 3651.18 3015.35 2937.45 2483.33


PROFIT AND LOSSS ACCOUNT 2012 – 2013 2011 – 2012 2010 – 2011 2009 – 2010 2008 - 2009
A. Earned from
1. Sales 69717.71 54222.00 45368.03 37094.19 35007.87
2. Other income 108.18 114.28 68.04 133.69 95.52 69825.89 54336.28 45436.07 37227.88 35103.39
1. Raw materials & finished goods 60474.34 45026.54 38060.08 30222.60 2888.30
2. Manufacturing, administrative, selling & other expenses 5601.64 4730.89 4161.05 3589.23 3806.95
3. Employee benefits 2348.7 2287.07 1855.14 1498.68 1376.19
4. Finance costs 313.65 245.27 236.64 266.92 276.18
5. Depreciation 422.10 459.47 455.85 384.31 259.03 69159.80 52749.24 44768.76 35961.74 34602.65

Less tax expenses 200.79 542.11 217.50 438.87 180.20


Appropriated to
1. Dividend 320.00 352.00 320.00 320.00 160.00
2. DDT 54.38 57.10 51.91 53.15 27.19
3. Retained in business 90.92 635.83 77.90 454.12 133.35 465.30 1044.93 449.81 827.27 320.54


KSE Ltd has a well organised purchase department of doing whole activities related to the procurement of raw materials, stores and spares, packing materials, etc…this department have a crucial role in the functioning of KSE Ltd. The assistant purchase manager, purchase officers and clerks help in the works of purchase manager, who heads the purchase department. The company has a purchase committee consists of the purchase manager , general managers of other related departments, executive director, chairman and the nutritionist, which convenes at least one month. This committee collets information about raw materials such as the market of raw materials i.e. the price, the demand and supply functions. Purchase department buys not only raw materials, but also civil, electrical, stores and other items which are required in the factory. The raw materials of the company are mainly agricultural products. As such the production and availability of raw materials vary seasonally from place to place. Raw materials are delivered through road, rail, and seaways. This department works only as day shifts.

• To keep a regular check with contracting brokers all over India and thus know the market place.
• Storing the goods in appropriate places for easy retrieval and use.
• Forwarding payments of foreign charges.
• To give purchase orders.
• To keep a feasible market to purchase.
Company uses both direct and indirect methods for purchasing the raw materials. In many cases the materials are purchased through brokers as they will be well known about the availability of the same. Some times the company may directly purchase the material from the supplier.
It is a contract made for the purchase of raw materials and is signed by purchase, general and financial managers. It contains all the details of the product and payment. It is printed in 6 copies. 2 copies are send to the parties, 1 copy is returned as a confirmation, 1 copy to the accounts,1 copy to godown, 1 to purchase department and the remaining in the running files.


1. A document stating the required units of the materials will be received along with the signatures of the related department heads.
2. Plans are made by the purchase department about the what, when and how to purchase.
3. Materials are purchased through brokers using the supplier contact they send.
4. A meeting will be held by the general, finance and marketing managers after receiving the quotations.
5. Selecting one supplier after evaluation.
6. Discussion of rate, quality, quantity and etc… of the order
7. An agreement will be made if they reach into purchase decision regarding purchase and payment.
8. Purchase order will be send to the supplier.
9. Receiving and inspecting the materials arrived and payment to the supplier.

It is the main and the most important department of manufacturing concerns. KSE is proud of its well co-ordinated labour force. The HR department was seen as a place where the lesser productive employees could be placed with minimal damage to the organization’s ongoing process. Human resource management is concerned with all aspects of managing the human resource of an organization. More specifically, human resource management involve determining the organization need of human resource, recruiting and selecting the best available employees, developing counselling and rewarding employees, acting as a liaison with unions and government organizations and handling other matters related to the well being of the employees.


• Employee’s selection procedure
• Remuneration of workers
• Allowance of employees
• Statutory liabilities


• Recruitment
• Manpower planning
• Welfare function
• Grievance handling
• Discipline
• Industrial relation
• Public relation
• Job description
• Job analysis



• One of the major strength of the company is its brand image. It is providing quality products and it satisfies most people, so its sale goes on increasing each year. In 2012 – 2013 financial year the turn over showed an increase of 28%. Each year it goes high.
• KSE Ltd has 40% market share in the state, although it has got competitors like Kerala Feeds and some other cattle feed manufacturers.
• It has got 38 year experience in manufacturing as no other cattle feed manufacturer in the state has got these much experience.
• It has got ISO certification and it maintains many quality standards. And any of the customers can come and visit the manufacturing site at any time.
• KSE provides a good after sale service.
• It has got multiple branches across the state and Tamilnadu, in order to manufacture in high quantities and to reach much as possible.
• KSE not only manufactures cattle feeds but also sells dairy items and ice cream which are very profitable.
• A wide range of dealership helps the company to find easy market and thus result in huge sales.
• KSE has won the best productivity performance award by the national productivity council, New Delhi in the category of animal feed processing industry for 10 years beginning 1996.


• KSE is not able to stand against the stiff competition from Kerala Feeds because the later will get subsidies from government to reduce the cost of raw materials. But for KSE it is not able to get any subsidies as it is not a government initiative.
• Company is not able to get enough profits even if the sale goes on increasing.
• Frequent hike in diesel prices makes the company to pay more for transportation.
• Company is not available with the oil cake as they fails to get enough oil cakes across the country. And it has been imported from Indonesia.
• Sometimes the by product that is the edible oil will incur more cost than its sales price.


• There are various other segments which are closely related to the current one and if tapped could result in additional earnings for the company. They should consider other pet foods.
• They should expand their working to northern India as farming is more in those areas.
• They should expand the market for edible oils.


• The government initiative of cattle feed manufacturing called Kerala Feeds is getting many subsidies which helps in deducting the cost of production, while as KSE is not getting anything in the form of subsidies.
• In the future there is a chance of non availability of oil cake and it will affect in the production of the same. FINDINGS

• The total turnover of the year has increased by 28%.
• The profit of the company reduced by 50% from the last year profit.
• The cost of raw material makes the company to reduce its profit as they are not able to increase the price of product.
• There is no change in the quality of the product.
• Workers are not using the safety materials such as masks.
• Now all the distributors are recorded as ex-factory rate to reduce the service tax to the government.


• It should open new branches in north India as farming is more present there.
• They should provide more advertisements in order to attract more customers.
• They should find some other way to get raw materials cheap.
• Make safety more important and enforce.
• Find new ways to reduce the cost of the product.


The study was conducted to understand the functional areas of the company and to understand the company in a better way. All the departments in the company is perfectly blended each other in order to bring profit to the company and quality to the product. Company is well reputed as they are certified ISO and they are very cunning in social welfare. As part of social responsibility the company has built foot paths besides the main road and a children play park near the office.

They have got the market domination by covering 40% of the market in the state. And the dairy products are in good demand. They have introduced an ice cream in the name as VESTA and is selling at a good pace.


Books Referred:
• KSE Annual Report 2012-2013
• KSE Magazine
Web Links:

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