The Eastern Group was founded in 1969 and started as a wholesale business. It established Eastern Coffee and Curry Powder in 1983 as one of the first companies in Kerala to produce packed spice powders. Eastern Condiments was established in 1991 to meet increased demand. The company now exports to over 15 countries and has grown from producing 100kg per day to 130 tons. It has received several awards for its performance and quality standards from organizations like ISO and the Spices Board of India.
The Eastern Group was founded in 1969 and started as a wholesale business. It established Eastern Coffee and Curry Powder in 1983 as one of the first companies in Kerala to produce packed spice powders. Eastern Condiments was established in 1991 to meet increased demand. The company now exports to over 15 countries and has grown from producing 100kg per day to 130 tons. It has received several awards for its performance and quality standards from organizations like ISO and the Spices Board of India.
The Eastern Group was founded in 1969 and started as a wholesale business. It established Eastern Coffee and Curry Powder in 1983 as one of the first companies in Kerala to produce packed spice powders. Eastern Condiments was established in 1991 to meet increased demand. The company now exports to over 15 countries and has grown from producing 100kg per day to 130 tons. It has received several awards for its performance and quality standards from organizations like ISO and the Spices Board of India.
. The Eastern Group was founded by Late Mr. M. E. Meeran, former
chairman of the group, nearly two decades ago. He started its activities as a business with a wholesale provision of goods at Adimaly, Kerala in 1969 named Eastern trading company. Eastern Coffee and Curry Powder established in 1983 as a pioneer in the state to produce packed curry powders, coffee powder and food products. Eastern Condiments was established in 1991, as expanded form of eastern Coffee and Curry Powder, were employing 20 workers. The company exports its products to Saudi Arabia and the United Arab Emirates for the past few years and now the company exports its products to various parts of the world like Middle East, the U.K, the U.S.A, Australia, Germany etc. The production at the initial period was only 100kg per day. In those days, the process of production was enhanced from grinding to pulverizing and so the production could also help to preserve the natural taste of the powder. As Eastern curry powder unit could not meet the increased demand, establishment of Eastern Condiments with high production capacity was an absolutely necessary. Eastern Condiments was established in 1991 .100000 Kg of sales was registered in 1991. The company holds 78% market share and it follow cash and carry method. The company follows direct distribution and it had 96 routes. Now the company had 4000 employees and the last year turnover was Rs. 556 Cr. The company plan to attain the target of Rs.5000 Cr by 2020.
History of the company The story of Eastern curry powders began in a small mountain township called Adimali. Late Mr. M. E. Meeran was the former Chairman of the group companies and the Managing Director of Eastern Condiments (P) Ltd. As he is the Chairman of the group, within a short span of time, it could become the market leader in curry powders and the Eastern group through its consistent effort in monitoring quality excellence through rigorous standard in procurement campaign. From the initial production capacity of 100kg per day, now it can produce around 130 tons per day.The company started functioning with only a few workers and established two production units in Adimaly and in Theni at Tamilnadu. The management of the company and the workers are working with the heart and soul for the achievement of the goals of the organization. About Adimali Plant
Eastern condiments pvt Ltd was established as a fully fledged operating company in 1991. In Adimali the company has two plants they are main company plant and a masala powder division plant near to adimali town. In adimali main plant, i.e. in main factory plant packing of Chilly, Turmeric & Coriander (CTC), Production of rice powders, production of pickles both vegetarian and non vegetarian, Packing of seed etc is taking place. In masala powder division plant various masalas like Meat masala, Chicken masala, Chana masala, Garam masala Sambar powder, Rasam powder etc is taking place. In mother factory plant production of coffee and chukku coffee is also taking place. The production of CTC powder (Chilly, Turmeric & coriander) is taking place at Eastern Condiments Theni unit, and it is brought to the mother factory for packing and marketing. Main the Adimali unit is focusing Kerala marketing. Through Adimali plant the finished goods are marketed in Kerala by van sales. The van along with sales man and sales executives approach the dealers. The clearance of stock in van is made from the depots of Eastern which is spread around Kerala. Eastern have 5 Depots spread in different places namely,
Awards Won The eastern group has won many prestigious awards for its outstanding performance by Spices Board India for 11 consecutive years from 1997-98 to 2012-013.Recently Eastern group has won the best exporter of spices from spices board of India. Mr. M .E. Meeran, former Chairman of Eastern Group was awarded as the Best Business Man of the year by Business Deepika (leading business journal in Kerala) in 2007-2008. He is also the award winner of Best Entrepreneur of the year by Mangalam Publications. The company has also won the FACT MKK NAIR MEMORIAL PRODUCTIVITY award for the year 1995-1996. The company has got ISO 22000 and the HACCP certification in 2007. Eastern is the first company in India to get ISO 22000 certificate. Certificate issued by Food Cert BV Netherlands, accredited by RvA the first body in the world for food safety accreditation. Eastern is an ISO 9001 certified company in 2003. Company gets NABL accreditation for their lab.
INTERNATIONAL ORGANISATION FOR STANDARDISATION (ISO) ISO was set up in the year 1987. It is a worldwide federation of standard bodies from 138 countries. Bureau of Indian Standards (BIS) represents India in ISO. MISSION: Its mission is to promote the government of standardization and related activities in the world with a view to facilitate international exchange of goods and services and to develop co-operation in intellectual, scientific, technological and economic activities. ISO Series ISO 9000-2000 ISO 9001-2000 ISO 9004-2000. ISO VERSIONS ISO 14000 for eco-friendly products and companies ISO 9000 for the overall quality products ISO 22000 for food safety products
ROLE OF ISO 22000 AS A QUALITY PROCEDURE FOR EASTERN CONDIMENT PVT LTD Eastern is the first company in India and second in Asia to get the ISO 22000 certification issued by Food Cert Netherland and accredited by RvA, the first body in the world for food safety accreditation. Eastern got ISO 22000 for food safety in September 2005. There shall not be any shortage of goods in the market. To give the customers delight that is giving more than what is expected by the customer ROLE OF ISO 22000 IN EASTERN CONDIMENTS PVT LTD The organization shall ensure the following basic requirements for the implementation of ISO 22000. Identify reasonable and expected food safety hazards evaluate and control ensure no harm is been made out of its consumption Communicate appropriate information regarding the safety issues related to its products Communicate information concerning development, implementation and updating of food safety Evaluate periodically and update
The ISO gave only the basic documents of the pre requisite programs and the company has to work out in its own way for implementing ISO. FOOD SAFETY POLICY Eastern condimental Pvt. ltd committed to supply safe and hygienic spice powder, masala powder, pickles, rice and coffee powder to their customers through control of food safety hazards in the raw materials using greatest process technology maintaining hygiene and sanitation conditions, practicing personal hygiene system to the expectations of their customers by complying with statutory and regulatory requirement.
Testing Facilities Eastern has installed a fully-automated Microbiology-testing Lab to ensure stringent quality in spices and ready-to-eat food products. ECPL is the first company in India to have such a system. WAREHOUSE AND PRODUCTION CAPACITY In addition to the godown for raw material in Theni near Madurai (Tamil Nadu), Eastern has its own Warehouse of 40,000 Sq.ft. for raw materials. A refrigerated storage facility of 90,000 Sq.ft. to store 3000 MT for chilly from Voltas Refrigerated Systems is fully functional at Theni. Apart from this,Storage of approx. 10,000 Sq.ft. is available at Adimali (Kerala) for raw materials and 10,000 Sq.ft For finished goods. Additional storage facility of 13,000 Sq. ft. is available at Kalady (Kerala).All warehouses are equipped with insect and rodent control devices including pheromone traps. MANAGEMENT OF THE COMPANY Mr. NAVAS MEERAN is the chairman and the managing director is Mr.Firoz Meeran. In addition to that Mr. M.E Muhammed, Mr. S.M. Muhammad hold the Board of directors. For administration there is corporate office at Ernakulum.
The company started functioning only with few workers. Now it is grown to more than 2200 employes, they are working with one heart and soul for the achievement of the goals of the organization. The company started functioning only with 25 employees. Now it is grown to more than 2200 employees, they are working with one heart and soul for the achievement of the goals of the organization. Mrs. Nabeesa Meeran playing a key role behind the success of the Eastern Group; she has been the principal of the Eastern Public School Adimali.
VISION & MISSION OF THE EASTERN GROUP
VISION To be preferred supplier of products and services of outstanding value, satisfying the basic needs of the mass market through the adoption of globally acceptable standards and continuous innovation. To be the preferred employer in the industries we are in, by providing a challenging work environment and adding value to our people through exposure and shared learning. To be the preferred business partner of all our stake holders, by providing them with exemplary benefits and shared growth. MISSION To provide good quality goods to the present and prospective customers so that company can prosper more. To have continuous availability of products of Eastern so that there shall not be any shortage of goods in the market. To give the customers delight that is giving more than what is expected by the customer.
3.3 COMPANY POLICIES The companys most important policy is to produce pickles and spices powder according to the specification of the customer. This will be achieved by; Implementation of ISO 9001-2000 & ISO 22000 quality management system. Implementation of good safety and hygienic practices. By the involvement of trained and slotted employees, the company is able to continually improve the quality of the products by updating the quality management system based on the customer feedback. HRD concept fully implemented Quality circle formed and working effectively and implemented Enterprise resource planning ERP implemented progress in introgression of operation
ORGANIZATION CHART EASTERN GROUP OF COMPANIES Eastern Group of Companies is a group of companies with diverse interests and a world leader in Indian spices. Eastern has ventured into various areas like tyre retreads, mattresses, garments, packaged foods, mineral water and public school and has many more projects in its dream. The detailed description of each company is given below;
Eastern Curry powders
King Richard Shirts
Sunidra Mattresses
EASTERN GROUP OF COMPANIES
Eastern Newton Public School
Eastern Treads Ltd
Eastern Aqua minerals
Eastern Curry powders The company has provided their consumers with consistently high quality powders and blends. Eastern Condiments operates from two modern factories situated in the Western Ghats of South India DIRECT POWDERS TURMERIC POWDER CHILLI POWDER CORIANDER POWDER BLACK PEPPER POWDER
DIRECT SEEDS
MUSTARD CUMIN BIG JEERA MEETHI
BLENDED CURRY POWDER RASAM POWDER SAMBAR POWDER PICKLE POWDER FISH MASALA CHICKEN MASALA MEAT MASALA BIRIYANI MASALA GHARAM MASALA KABAB MASALA
Sunidra Mattresses Sunidra mattresses Pvt.Ltd. was set up in 1999 to manufacture rubberized coir mattresses with a state of the art factory in Thodupuzha. The popular brand of rubberized coir mattress manufactured by Sunidra Mattresses Pvt.Ltd.is slowly growing and it is to be a market leader in the country. Sunidra has own the ISO 9001-2000 certificate. Sunidra is made of rubberized coir sheets that are produced from 100% natural latex without any added waste. These rubberized coir sheets are air permeable and have natural breathing qualities, it does not cause any allergies and also recyclable. Eastern Aqua minerals Eastern Aqua Mineral, a recently launched company was set up in the year 2002.Eastern Aqua Mineral entered the area of packaged drinking water with the state of plant located at Ernakulum district. Eastern packaged drinking water of highest purity standard, high quality with control, 1286 testing facilities and quality product with international standards. It is available in convenient sizes. Eastern packed drinking water is also priced attractively in keeping with Easterns view of bringing high quality products to the common man at the right price. Eastern Newton Public School The Eastern group entered the area of education with the getting up of the Eastern Public School. Mrs.Nabeeza Meeran has been the Principal of Eastern Public School. This school ensures a high quality education from kindergarten to primary levels with C.B.S.E syllabus providing all the residential facility residing at the heart of Idukki District. Eastern Treads Ltd Eastern Treads Ltd. Is a public company engaged in the manufacturing of quality procured tread, cushion, bonding gum and black vulcanizing cement? Its branches all over India have been showing consistent high performance and growth. The factory has annual turnover of 12 crore and it is located at Oonnukal, Kothamangalam. The company has a processing capacity of 12 tonnes of cold rubber per day with nationwide market network. This company is in the service industry for retreading tyres and the service plant is located at Vazhakulam. The company services by retreading of used tyres on an average basis of 1500 tyres per month. King Richard Shirts King Richard, a brand of men's wear from Eastern Clothing Company was set up in 1999. This brand was targeted at middle class. King Richard Includes all the trends of color combinations and designs of fashion shirts and trousers with a view to meet the aspiration of working class with a quality ready wear at responsible price in the international styles. This factory has the production capacity of 15,000 shirts per month. Top quality fabrics are used in the manufacture of King Richard brand shirts (utilizing 100% of cotton from India and European brands like Bergamo, Brisbane, Italian fabric etc.).
Eastea In recent time the company launched a new product East Tea from its product line. Taste and Strength in every sip, Eastea - Premium blended tea, from Eastern has just entered the market with its signature promise of taste and strength.
CSR OF THE COMPANY Eastern Condiments Pvt Ltd, the major food products manufacturer is on the way of powering the nations growth with heart to heart touch of humanity. As a responsible corporate citizen, Eastern has been addressing the issue of community development in the neighboring areas of its stations through CSR. The activities are; Eastern Newton school: The Eastern group entered the area of education with the setting up of the Eastern Public School at Adimali, Idukki dist; Kerala. Eastern Public School ensures high quality education from kindergarten to primary levels with C.B.S.E syllabus providing all the residential facilities and highly trained faculties to the thousands of families residing the hills of Idukki district Kerala. WOMEN EMPOWERMENT: Eastern Condiments gives preference for women as their workers. Around 80% of workers are women. Most of the women workers are living local in areas LOVE PLASTIC A project to reduce, reuse and recycle plastic wastes. It protects environment and economy. Plastic bags and bottles are fully recyclable. Educating and encouraging customers to recycle them is the responsible way to decrease litter and when compared to alternatives to conserve resources and energy. EFFLUENT TREATMENT Anaerobic and aerobic effluent treatment plants are installed at all major spice and grinding locations.
INDUSTRY OVERVIEW India produces 2.5 million tones to 3 million tones of spices annually. India produces spices of different categories worth around US$ 3 billion. In terms of volume and value, India accounted for 46 percent and 23 percent in value of global spice trade. (Source: Spices Board India) India accounts for 25-30 per cent of worlds pepper production, 35 per cent of ginger and about 90 per cent of turmeric production. Among the Indian Federal states, Kerala tops in pepper (96 percent), Cardamom (53 percent), Ginger (25 per cent) production in the country. Andhra Pradesh leads in Chilly and Turmeric production in the country with 49 per cent and 57 per cent. In coriander, cuminand fenugreek production in the country, Rajasthan emerges as the largest producer with63 per cent, 56 per cent and 87 per cent.
The world spice trade is estimated at US$ 1.5-2 billion in terms of value and 500,000tonnes in terms of quantity. Within the past one decade, the international trade in spices has grown by leaps and bounds. As estimated 500.000 tone of spice and herbs values 1500 million US dollars are now imported globally every year. An impressive 46% of this supply comes from India. Indias exports and spice extracts have made spectacular growth attaining over 50% of the global market within a short span. At present India produce around 2.5 million tones of different spice valued at approximately 3 million US dollar, and hold the premier position in the world. Because of the varying climate suitable for the spice cultivation almost all spices are grown in this country.
COMPETITORS INFORMATION
The company has many competitors in the market because the condi ment s i ndust r y i t al so smal l scal e i ndust r y. So t he company faces competitors mainly from three different states like Kerala - Saras, Brahmins, Double Horse, Nirapara Karnataka -M T R. Tamilnadu Shakthi
Market position Within the past one decade, the international trade in spices has grown by leaps and bounds. As estimated 500.000 tone of spice and herbs values 1500 million US dollars are now imported globally every year. An impressive 46% of these supply come from India. Indias exports and spice extracts have made spectacular growth attaining over 50% of the global market within a short span
FUNCTIONAL DEPARTMENTS
Human Resource Development Finance Department Production Planning & Control Department Purchase Department Production Department Quality Control Department Marketing Department Export Department Maintenance Department IT Department
3.1HUMAN RESOURCE DEVELOPMENT
Man power or human resources or people at work of an organization consists at all individuals engaged in any of the organization activities regard less of levels. Manpower is one of the primary resources. The key factor in the growth of Eastern is the good and healthy employer- employee relationship. More than 2200 employees are working with one heart, where 80% comprises women workers. OBJECTIVES OF H.R DEPARTMENT 1. To recruit the right persons whenever vacancy arise. 2. To give training to production supervisors and other technical personnel 3. Ensuring medical fitness to all employees by conducting medical examination every year. 4. To evaluate the performance of every employees.
CLASSIFICATION OF WORKERS 1. Senior workers 2. Junior workers 3. Piece rate worker, Daily wage workers 4. Technical workers (workshop and maintenance) 5. Apprentice RECRUITMENT AND SELECTION Recruitment procedures A) Direct method In Eastern this method is frequently used for recruitment. The firm places jobs advertisements in Malayalam, English newspapers and T.V medias and tries to attract as much capable people from outside its company service. B) Internal recruitment Several posts are filled from the internal candidates. Whenever a vacancy arises, efficient and skilled workers from the rank and file of the company are promoted and appointed in the company. Besides, evictees, local candidates who belong to surrounding panchayath have preference in subsequently arising vacancies. SELECTION 1) Test are conducted only for senior position Tests are conducted only for administrative posts. After scrutinizing the received application the managers conduct tests for candidates. 2) Interview After the test the managers conduct face-to-face interview with candidates and select the best person based on his qualification and ability. But in Adimaly branch selection is doing only for the posts of sales executive and drivers. The executives from the Ernakulum branch directly doing the selection procedure of remaining all posts. TRAINING The company will prepare yearly training schedule based on ISO 22000
TRANSFER Employees are transferred to different departments on the basis of their skills PROMOTION Those workers having required qualification and eligibility are promoted to supervisory cadres. PERFORMANCE APPRAISAL Eastern is following a special type of system for appraising the workers that is KRA system i.e., the KEY RESULT AREA. Here the performance of individual employee is evaluated by his superior officer. The officer will evaluate the employees performance on the basis of result made by them and make a report for the board of directors for recommending the promotion. WAGE AND SALARY The workers are paid in two systems; Piece rate system Under piece rate system of payment, wage is paid on output and not on time. Production goes up when wage are paid in according to piece rate system. This system used in the packing section. Salary system This mode of payment is applicable for the rest of the workers, which also includes the loading and unloading workers. It is not on the basis of the production, it is based on the time that they were worked. NON MONETARY BENEFITS The company provides a lot of non-monetary benefits to their employees. Some of them are as following 1. Transportation Transportation is provided to the employees to different destination points and a very small marginal amount is deducted from their wage or salary. 2 Personal protective equipments: Personal protective equipments like head covers, aprons and uniforms are also provided to the workers in the packing section. 3Medical insurance The employees are provided with medi claim policy, which gives free medical insurance to the employee and his/her family. 4 Pension scheme The scheme has been formulated for those employees who have retired from their work. 5 Annual medical checks up The employees are provided with free annual medical check up facilities 6 Canteen facilities Canteen facilities are provided to all the employees where they get free food. 7 Tours and picnics Tours and picnics are conducted once in a year which increases the motivations and initiatives of the employees in additions to the fair and just wage incentive system. For the effective administration and working of the company, weekly meetings are organized to discuss various issues and working of the company. The chair man and the managers of department heads are in the meeting GRIEVANCE AND REDRESSAL Generally grievance means any problems involving wage, working hours or condition of working environment. In Eastern all work as family and all workers are free to make address his problems to supervisor if he has any grievance. The company has kept some persons in the company itself where the employee can directly come and tell his problems in any case. For this the company also conduct some training programs and meetings where the employee can speak about any problem he has in the company. JOB DESCRIPTION Job description is a statement given to every employee; it contains the detailed report about the task, way of doing, techniques to do the task, etc. This statement is given to every employee for doing their work easily and efficiently
4.1 STRUCTURE OF HUMANRESOURCE DEVELOPMENT CEO
Vice president Operation
Senior manager HR and management
Asst.mgr HR
Senior officers
Officers
3.2 FINANCE DEPARTMENT Finance is the life blood of business. Finance refers to the cash and fund available for carrying out the business. It is very important to manage the cash and fund for the smooth running of the business. Finance department helps the organization to control the cash and fund flow of the business. Finance department deals with the procurement and utilization of fund and the distribution of the returns to the owners. IMPORTANCE OF FINANCE DEPARTMENT 1. Financial department has an impact on all activities of the firm. 2. Financial department aims to discharge the finance functions successfully 3. Financial departments main aim is to use business funds in such a way that the earnings are maximized 4. Financial department is necessary to every type of organization, irrespective of its size, kind and nature 5. Financial department is useful for all types of organization where there is any use of finance. OBJECTIVES OF FINANCE DEPARTMENT The objective of Financial Management or goals of business finance is to maximize the companys economic welfare. There are mainly two steps for achieving this specific objective. They are; Profit Maximization;Profit earning is the main aim of every economic activity. No business can survive without earning profit. Profit also serves as a protection against the risks which cannot be measured. Thus, profit maximisation is considered as the main objective of the business. Wealth Maximization When the firm maximizes the stock holders wealth, the individual stock holder can use this wealth to maximize his individual utility. This objective helps in increasing the value of shares in the market. SOME IMPORTANT FUNCTIONS OF FINANCE DEPARTMENT Preparation of Corporate Plans, annual plans and budgets.
Advising management on funds utilization and its implementation.
Monitoring the process of budgets achievement.
Providing taxation pinning and advisory services to the company.
Preparation of financial statements and thus identifying the financial strengths and weakness of the firm by properly analyzing and interpreting the financial statements.
Olden days Tally was used for the various financial operations but now Eastern have their own software ORION specially made for the financial purpose. The authorized share capital of the company is Rs. 35, 00,000/- divided in to 3500 shares of Rs. 1000 each. In the previous year New Vernon Bharath Investors had invested Rs.45 crore for 15% of its share. The company has a daily working capital of Rs.3 crore and the banking partners is FEDERAL BANK. The monthly profit of the company is around 20 crores and the last year turnover of the company is RS: 503 crores. Their Audit works are carried out by Deloitte Haskins& Sells International Auditors.They will get a percentage of the profit. SOURCE OF FINANCE Federal Bank Loan, owners capital and also from sales. TAX PAYMENT A separate department working under finance department called TaxDepartment.Tax payment through e-filling is in 15 th day of every month.There are 50-60 corers will pay for sales tax by the company. FINAL ACCOUNTS The Profit and Loss a/c is preparing every month and by combining all the P&L a/c prepares the final P&L a/c and Balance Sheet is preparing annually. A/C RECEIVABLE & PAYABLE The company also has credit sales and purchase. They give bills to their debtors and receive bills from creditors for credit dealings. The bills are transferred to cash within short period.
3.3 PRODUCTION PLANNING AND CONTROL DEPARTMENT Production planning and control is the department which plans everything regarding production. It find out what is to be produced, when, what quality and it even informs the purchase department about what raw materials to be purchased for production PPC regulates stock inflow and out flow with the help of ORION software so the amount stock will be readily available They make plans according to the data provided by the marketing department. Based on this, they give instruction to purchase department and the production department. Production is according to the requirement and will depend on the seasonal demand. DATA ENTRY OPERATIONS The monthly production of Eastern is 240000 tons. This is based on monthly demand. Every sales executive gives the order from retailers. Based on this PPC gives instruction to both production and purchase.
OBJECTIVES OF PPC DEPARTMENT 1. Increase profitability of the company 2. Quality control 3. Maximize output with minimum input 4. Minimize cost 5. Coordination between men and machines 6. Establish routs and schedule of work 7. Ensure operations are run efficiently and as planned 8. Optimize the use of resource, material, machines etc.
PROCEDURE All 5 production location is handled from Adimaly Itself they make plans according to the data provided by the marketing department. Based on the information from marketing department and give instruction to the purchase department and production department. They make plans according to the data provided by the marketing department for the coming period). Based on this they give instructions to purchase department and production department. They plan for 3 months later it divided on monthly basis and finally supervisions in production scheduling on weekly basis. Production is according to the basis of the requirements and will depend on seasonal demand. 3.3 STRUCURE OF PPC DEPARTMENT
BOARD OF DIRECTORS
3.4 PURCHASE DEPARTMENT Performance of a manufacturing firm always depends on the efficiency of its purchase department. The various raw materials need for production is purchased by this department. If the materials are purchased at right time at the right quality from the right suppliers it results in production of materials as per the request of inventory control section. Mainly Purchase Department is connected with Purchasing of Raw materials and also for Purchasing Automobile Spares and Machinery parts. Mainly Chilly are brought from Gujarat and Karnataka and Turmeric from Kerala and E. Road. For Storing the Raw materials a well furnished go down is there in Theni. OBJECTIVES OF PURCHASE DEPARTMENT - To provide uninterrupted flow of materials and service for production department - To find reliable alternative source of supply Production Head Manager P C S R Officer Officer ASST MANAGER - To buy at the most economic order quantities - To buy the best value, a combination of right quality at the best price with the best supplier service - To maintain good relations with vendors PURCHASING PROCEDURE Evaluation of existing suppliers for raw materials This is the first step in the purchasing procedure. The evaluation of the suppliers is mainly done on the basis of rating them. There are mainly three types of rating methods they are; 1. Quality Rating 2. Supply Rating 3. Delivery Rating
QUALITY RATING The quality rating is done on the basis of the quality of the raw materials before purchasing it. The raw materials are tested by the quality control department and make sure that the raw materials are of best quality and non-hazardous. SUPPLY RATING The supply rating checks the suppliers ability to supply the raw materials at right time. The rating is done on the basis of a quality technique; the maximum mark given is 15, which is given to the supplier who supplies the raw materials on or before the prescribed time. The total mark is calculated on 70 and it is given to the accepted suppliers DELIVERY RATING This is calculated on the basis of the correct time of the delivery of the materials A) Registration assessment of potential suppliers B) Purchasing order C) Purchasing D) Verification of the purchases products DIVISION OF PURCHASE In Eastern the purchase can be done in five small divisions. The purchase department is divided in to small groups because of convenience. The five divisions in purchase department are given below. 1. Packing division Product mainly deals with purchase of packing materials. Packing materials are purchased from Leeths, Relience, and Omni. 2. Raw material division The raw materials for the production are purchased by this department. The raw materials are purchased from Theni, Tamilnadu, Guntur, AndraPradesh 3. Mechanical purchase division It is focused on purchasing of machinery items and their parts. Machineries are purchased from Ernakulum. 4. Electrical purchase division It is deals with purchasing of electrical components 5. Automotive purchase division The automobile equipments are purchased from TVS, Automobile Eicher. SUPPLIER EVALUATION The supplier evaluation is done monthly ie, the internal audit. The steps involved in the supplier evaluation are, Trial purchase from the supplier Registration of the supplier Quality of materials supplied Time of delivery of materials Quotation-Low rates from the suppliers are accepted ISO-criteria followed The purchase department is functioning on the basis of the ISO schedule. The quality and the safety of the materials are checked and analysed by the quality control department. SUPPLIERS IN EASTERN FOR VARIOUS PRODUCTS G.T SPICES ALFA SPICES GOLDEN SPICES MICHEL SPICES KISHOR SPICES COMPANY KAFATH TRADIND CO. KURUWA ENTERPRICES SYNTHITE INDUSTRRIES LTD GREEN SPICES LAXMI PROCESSING UNIT SHREE GANESH AGRO INDUSTRIES SWAPNA TRADERS B.D PATIL SONS VIJAYA ADI SAKTHI TRADERS 3.4 STRUCTURE OF PURCHASE DEPARTMENT
3.5 PRODUCTION DEPARTMENT The term production is An organized activity of transforming raw materials into finished products. The first step in production takes place both at Adimaly and Theni where the raw materials (chilly, turmeric, coriander) needed are purchased in bulk are cleaned, roasted, crushed, powdered and packed and dispatched to BOARD OF DIRECTORS A G M Purchase Assistant Managers Senior Officers Officers Adimaly for further packing. The distribution is handled by the company itself in itself. FUNCTIONS OF PRODUCTION DEPARTMENT a.Product selection and design, Process selection b. Production planning, quality control c. Inventory control, cost control d. Plant layout and material handling
Eastern Condiment deals with production and packing of curry powders, masalas, instant pickle powder and processing of pickles. The company has a production capacity of 12 tons per day. From the production point of view, latest techniques are used in preparing powders. Producers like steam sterilization are followed to maintain hygiene. Statutory quality parameters are employed in every sphere of production. To ensure that the spices reach the consumer at a fresh conditions at a minimal cost , the company follows international packing standards to protect, preserve and present its products. For bulk packing, the VACCUPAC system is used where in products are packed in vacuum, thus protecting the powders from fungal infection, moisture, oxidation etc. Production function performs according to instructions from the PPC. PPC gives monthly indent which is converted in to weekly plans by the production department. A stock of goods for 3 days production is kept with the department in case of contingencies. In production a normal waste of 2 % to 5 % is expected. All details regarding production are given to PPC daily. The department has 14 vehicles for the purpose of transferring raw materials. The department has around 750 workers. The production is dependent on the skill and experience of the workers. The productivity is around 75% QUALITY ASSURANCE The company follows stringent measures which are applied with regular laboratory testing. The Indian spices board with their spice house certification has recognized the companys obsession with quality and hygiene. Eastern has also achieved the highest ranked approvals for quality, the Hazard Analysis Critical Control Point (HACCP), ISO 9002 certification and ISO 22000 certification. The company ensures that supe. Old methods of powdering using new technology are what the company believes in Wooden spatulas are used to mix the powders and huge aluminium vessels are used to roast spices, grinding is done at required temperature, using micro pulverizes and the unique flavour lock technique, so that the oils in the spices are conserved , giving out the right flavours. 3.5 PRODUCTION PROCESS FLOW CHART
BOARD OF DIRECTORS HEAD PRODUCTION SENIOR MANAGER PRODUCTION PRODUCTION SUPERVISORS ASST. MANAGER PRODUCTION TEAM 3.6 QUALITY CONTROL DEPARTMENT Functions of this department is to ensure that the quality objectives of the firm are relevant to meet the requirements of the product quality and are periodically measured and compared against product quality requirement. A major purpose of this department is to ensure that the quality policy of the firm is conformity with the objectives of this department. Company has a well-equipped laboratory with all facilities which costs Rs. 4 crore. Before packing each sample of products are tested in the lab and will pack only if they get the good quality certification from the lab. And if any products are returned by the customers will be tested and find out the reason for rejection.
OBJECTIVES OF QUALITY CONTROL DEPARTMENT To bring down the total aflatoxin level of chilly and chilly based products To establish testing facilities to pesticide residue To maintain the quality according to the customer requirements To maintain the quality in accordance with the ISO 22000 DUTIES OF QUALITY CONTROL DEPARTMENT To ensure that the assurance budget are not exceeded In charge of quality assurance department In charge of day to day quality check To retain ISO certification by undergoing audit periodically Develop and implement quality policy, update it periodically and get them approved by the board.
The quality is ensured through 3 segments, microbiology, chemical test and instrumentation.The quality checking can be ensure in three stages like raw material, semi finished and finished or label checking. RESEARCH AND DEVELOPMENT Eastern is in house research and development continuously endeavors to improve its already existing standards. Further the company also innovate new product concepts, consistently in taste, pack, after pack, ensured through strict quality control. The packing plant of Eastern Condiments is complete with advanced machinery, implex pulverize that can pound finest spice powders without heating it up at all. This process preserves all the essential spice oil.The company is fully fledged with facilities including pouch making and printing automobile engineering division, Agmark lab.
3.6 STRUCTURE OF QUALITY CONTROL DEPARTMENT
BOARD OF DIRECTORS Senior Manager Tech Chemical Lab Sr. Officer Ass.Mgr. Microbiology Chemist Microbiolo- gist Head Technology &Engineering. 3.7 MARKETING DEPARTMENT Marketing is considered to be the head of an organization. It is the most important department in an organization. One of the important reasons behind the success of the company is its marketing strategy compared to their rivals. The system followed by Eastern is very unique and it has been very effective. They deal with the wholesalers and retailers directly at their door step with the help of around 86 direct selling regions in all around the state. OBJECTIVES MARKETING DEPARTMENT Developing marketing strategies Capturing marketing insights Building strong brand image Delivering value to consumers
DIRECT SALES This peculiar feature of Eastern curry powders helped it to vary from order companies. The group directly distributes the products to retailers in Kerala. The company has around 100 vehicles which go on around 75 routes covering the entire state. A sales executive, sales assistant and driver will be on each van to go for the sales The various sales techniques consist of:- 1. Route Sales 2. Factory Fresh Outlet 3. Inter Company Sales 4. Export Sales The sales executive for each route gives the order to be dispatched to each sales depot. He also takes care of the billing and cash transactions. After making a sale, a sales invoice is made and the summary is given to the cash department. After the delivery of goods, the vans return and by verifying the order form and the stock is checked. The accounts are maintained on a weekly basis. The company has around 40000 retailers and 15 dealers. Mainly, cash transactions are undertaken and credit facilities is given to only around 200 parties. Meetings of the sales executives are held every week after they return from their different routes. Here every aspect of the weekly sales will be discussed and any problems arising can be brought to the notice of the management. By the direct distribution the company has achieved a lot of benefits. Some of them are as follows; 1. They can deal with the wholesalers and retailers directly at their door step. 2. The company can maintain a good relationship with the wholesalers and retailers 3. The company can avoid the role of intermediaries in the distribution of the product. It helps to avoid unnecessary commission, brokerage and other related expenses. 4. The companys own vehicles are using for distribution aids to give an important mode of advertisement in addition to the other media advertisements. This incurs no additional cost. Eastern Condiment has entered in to world market in the recent years. In India it is capturing both urban and rural markets. In Kerala it is the market leader with more than 75% market share to almost all its products. In Tamilnadu and Karnataka the company holds 20% share and it is gaining strength. It is also to be noted that 50% of the market is still using home made products, 50% of the market is still untapped. So there is lots of growth potential for the economy. Competitors Saras Masalas Brahmins Food Products, Nirapara Spices, pooja Grand Mas Food Product Aachi masala, Sakthi masala Pricing Eastern is the price leader in Kerala market. And its product had higher price when compared with other products. But it is accepted because of its quality and goodwill. Complaint Handling It is done on a weekly basis by the sales representatives as they are meeting the retailers and customers directly and the complaints are collected. Later it will be reported in the weekly meeting. Promotional Activities Company introduces some promotional measures like card scheme to motivate their retailers. They also conduct some tours and give awards to some of the retailers. Company is conducting dealers meet in a year. Now the company is giving more importance for the promotions of EASTEA. Sales target is fixed once in a 6 month and is hoping for 10% growth every year.
3.7 STRUCTURE OF MARKETING DEPARTMENT
CM DGM MARKETING MANAGER MARKETING ASSISTANT MANAGER SR.SALES Executives SALES ADMNI.STAFFS Sales team
3.8 EXPORT DEPARTMENT Eastern Condiments Pvt Ltd is always maintaining it high quality and effective distribution in the overseas market too. Eastern foods started exporting in the year1995. Today the company exports its products to almost all Gulf countries, New York, Australia, UK and many other countries, where the company has its own distributors. The company exports above 100 tons per month. 70% of the exporting is to Gulf countries. Exporting is done with the help of distributors. Eastern is the leading exporter of condiments from India. Eastern has received the spices board award for the best exporter continuously for the last 11 years. The main products of exporting are spices and masalas. OBJECTIVES OF EXPORT DEPARTMENT Conduct research to find out right market Devise marketing strategies for the target market Understand the legal and regulatory issues
For exporting the Eastern condiments have a branch at Okkal in Kerala where special packing for exports is done and where stuffing of goods is also done. The rest of the procedural work is done at Adimali. The major portion of the export is to Dubai. Each container has a capacity of 12 tons and monthly 50 containers are exported. In the international market the product is marketed through distributors on commission basis.
The company has well equipped laboratory with qualified and specialized chemist for quality checking. For exporting the Eastern Condiments have branches at Okkal and Irumalappadi in Kerala. Stuffing and packing are carried out here itself. The rest of the procedures related to exports are done at Adimali. It is ensured that the C&F agent for onward submission to the bank prepare the following documents and submits to the Director under copy to the Manager (exports) for verification and records of Export Marketing Department.SDF-self declaration form it is the declaration regarding export of goods and services according to FEMA. On receipt of the above original documents, it will be verified and approved by Director before presentation to the bankers. The document copies received by Manager (exports) shall be verified and signed by him/her before taking the same as records. The documents are handed over to the bank for negotiation and the bank after negotiation sends the documents to our Overseas Buyers Bank. Copies of the above documents are maintained. The exporting is increasing year by year. The export had 50% growth in the previous years. The company is doing exports through shipment. Company uses its vehicles to send products to Cochin seaport.
Time required for transportation - Dubai 5 to 7 days - Gulf 15 days - USA 1 month - Europe 1 month For export Eastern has import and export codes. It also has spice board registration for exporting spices. Each country has its own specifications and requirements for the export product which has to be meet by the company before exporting. All exports are done through Cochin seaport. Each container which is exported will be checked before dispatch. About 500 products are exported. Some items like pickles are meant only for export and are not available in the local market. The turnover from exports alone for the company was 40 corers. All the transactions are done in Dollars only, including for Middle East and other countries Major Documents: Invoice, packing list Bill of lading, bill of exchange Certificate of origin, Health certificate. Method of Payment Down payment system. For new customers, for the first three containers- Advance payment. After, D/P. D/P (Document Against payment) method is used. L/C (Letter of credit) not using due to its complicate nature. The importer can clear his goods after negotiating with the documents sent by the exporter through his bank.
3.8 STRUCTURE OF EXPORT DEPARTMENT
CHAIRMAN
SENIOR MANAGER EXPORTS
SR. OFFICERS
OFFICERS 3.9 MAINTANANCE DEPARTMENT Maintenance Department of Eastern are responsible for us keeping the good condition of the plant and equipments in good condition. Maintenance department is divided into 3 namely; 1) Electrical 2) Mechanical 3) Automobiles 4) Stores Most of the maintenance works are done by the company staff only. If the maintenance is for critical equipments like generator etc. they will consult the respective company staff. Working hours is 8 hours. Maintenance of effluence treatment plant &non conventional energy plant is also done by this department. TPM [TOTAL PRODUCTIVE MAINTENANCE] Maintenance should be done at the right time and in a right manner. This will increases the machines life time and its productivity. Its the responsibility of the trained operator to do the daily maintenance thereby he will be completely responsible for the particular machine which he handles. So that production of plant will not affect. In excellent products [Machines & operators] should be avoided. Avoid accidents completely, if happened face/ handle it in a correct manner. For the effective working and maintenance of ISO 22000 a FSTL (Food and Safety Team Leader) is needed and a maintenance head is working as FSTL in the company and it is his duty to control/guide the instrumentation of ISO 22000.
OBJECTIVES OF MAINTENANCE DEPARTMENT a. Optimize the use of available funds, personnel and facilities and equipment through the effective maintenance management methods b. Systematically identify maintenance needs and deficiencies and capital improvement needs at all field stations
c. Enable preparation of service maintenance and construction budget request using systematic, standardized procedure d. Monitor a document corrective actions, project expenditure and accomplishment
3.9 STRUCTURE OF MAINTENANCE DEPARTMENT
BOARD OF DIRECTORS
Tech .head Maintenanc e Manger Maintenanc e Team Automobile in charge Workers 3.10 INFORMATION TECHNOLOGY DEPARTMENT Today the term information technology has bellowed to encompass many aspects of computing and technology, and the term is more recognizable than ever before. The information technology umbrella can be quite large, covering many fields. IT professionals perform a variety of duties that range from installing applications to designing complex computer network and information data bases. OBJECTIVES OF IT DEPARTMENT 1. Ensure the protection and security of data 2. Minimize duplication of effort, services and resources 3. Eliminate inefficient and costly redundancy 4. Eliminate non compatible standards and architectures 5. Identify obstacles for departments wanting to move computing operations to the division of information technology and solve it immediately DUTIES OF IT DEPARTMENT 1. Data management 2. Computer networking 3. Computer engineering 4. Data base system design 5. Software design 6. Management of information system 7. System management or system administration
The whole organization is computerized. All the departments are connected via networks. Eastern uses oracle based software called ORION, which has been customized to suit the needs of their particular organization. The networking is done through a BSNL base line The company has a good IT team for implementing the ERP (Enterprise Resource Planning) which was started in the year 2001 and was centralized in the year 2005. ERP enables fast transactions and systematic in all its functions. ERP also helps in generating MIS reports which help in decision making. The package used in ORION 7.4 and ORION 10.x (centralized data base). The package is provided by 3 i InfoTech technologies Chennai. Intranet in provided among the various offices at Thenni, Adimali, Chennai, Bangalore, Hyderabad and Ernakulum. The network main server is situated at Ernakulum and all the different divisions have their own domain to connect to the main server. The Eastern Condiment Pvt Ltd is a fully computerized company. In which 100 machines are connected using four servers. They are; Data base server Application server Domain server Backup server
The extent of computerization is done mainly on two considerations; considering the amount of data accuracy needed The company has centralized data base password control to restrict unauthorized access. 3.10 STRUCTURE OF IT DEPARTMENT
CHANGE IN DUTIES AND RESPONSIBILITIES OF VARIOUS DEPARTMENTS ACCORDING TO ISO 22000 The certification upholds the steps taken by the company to install the latest infrastructure in every stage of manufacturing as well as logistics. The certificate for food safety system is issued by Food Cert BV Netherlands. PURCHASE DEPARTMENT For ISO 22000 the raw materials used for production should be free from hazardous substances and chemicals. The raw materials must be free from poisonous substances. For ensuring the quality raw materials the purchase department makes purchase only from those known dealers and farmers. For the food products the raw materials should not be grown in areas where the presence of potentially harmful substances and chemicals, the usage of fertilizers must be controlled. OFFICERS SENIOR OFFICERS IT MANAGER BOARD OF DIRECTORS Samples of the same item are first collected from the supplier of various places and then samples are analyzed by the laboratory. After the raw materials received the quality must be checked by the quality control laboratory. If there are any discrepancies, the company has to claim on the supplier. PRODUCTION PLANNING AND CONTROL The first step in production take place at Adimaly and Theni where the raw materials needed are purchased in bulk are cleaned, roasted, crushed, powdered and packed .For the production point of view, latest techniques are used in preparing powders. For the ISO certification the factory location must be free from environmental contamination, smoke, flood, pest infection, etc and the equipment and machinery will be well positioned for easy cleaning and maintenance. And eastern is fulfilling all these conditions. HUMAN RESOURCE & ADMINISTATION According to the guidelines of ISO the managers and supervisors shall have enough knowledge of food hygiene principles and practices to be able to judge potential risks, take correct action, and ensure that effective monitoring and supervision takes place. A 16 hours training to every workers Induction to training The department is responsible for making all the personnel aware of their role and responsibility in protecting food from contamination. The HR department periodically checks the health status of the employees and keeps them away from production and packing if any illness is found. QUALITY DEPARTMENT Functions of this department is to ensure the quality objectives of the firms are relevant to meet the requirement of the product quality and are periodically measured and compared against product quality requirement. A major purpose of this department is to ensure that the quality policies of the firm are in conformity with the objective of this department. The company follows stringent hygiene measures, which are applied after regular laboratory testing. Each sample of raw materials must be tested to finding the humidity, quality general contaminations, and pest infections before placing the order. Each sample of production must be tested in the lab before packing, and it will be packed only if it seems to be of good quality. If any product is returned due to customer complaints, they must be tested in the laboratory and find out the reasons. MARKETING DEPARTMENT As per ISO requirements batch identification is necessary in product recall in emergencies. Each packet of food shall be permanently marked to identify the product and batch. All food product shall be accompanied by or bear adequate information to enable the consumer to handle. Store, prepared, and use the product safely and correctly. FINANCE & IT DEPARTMENT Finance & IT department have only a little role in the implementation of ISO 22000. They are helping other departments by keeping and updating the correct documents. The software used for IT & Finance is ORION. EXPORT DEPARTMENT The good export should be of good quality and goods should not be contaminated while the transport. The containers and conveyances for transporting shall be kept in an appropriate state of cleanness, repair and condition. MAINTENANCE DEPARTMENT As per the ISO requirement the establishment and requirement must be kept in an appropriate state of repair and condition to function as intended, prevent contaminations etc. for the implementation and maintain ISO a FOOD SAFTY TEAM LEADER is required in every organization.
INTERDEPENDENCE OF DEPARTMENTS All the different activities that go on in a business are interdependent and work together to create value for the customer and wealth for the business. The different departments of the business are interdependent; that is, they rely on each other and work together to achieve the objectives of the business. Within a business, it is the role of management to coordinate all the organizational departments and ensure that they work together for the overall success of the business. These departments support the main goals of the business. They are very dependent on each other, and it is very important to understand the interrelationships between them. The way that one functions might decide to achieve its goals could affect the whole business, so considerable cross- functional coordination is required. In EASTERN, there is a functional interdependence between different departments as different functions communicate with each other in order to meet the business aims and objectives. Human Resource department is directly related to all the other departments as it controls all the manpower requirements in the organization. . Human Resource Management at EASTERN has many advantages as well as disadvantage. It is the global company and it is impossible to create certain policies or procedures applicable in all divisions of the company, cultural and political differences need to be taken into account. Production is the functional area where the raw materials are converted into finished products through a series of production process. It is done by keeping quality conscious in mind. The quality control department ensures the quality right from the procurement of raw materials, at each stage of production and just before packaging. Production department also functions by collecting information both from materials as well as marketing department. Production department checks the quality of the raw materials and if it does not meet the standards report it to the purchase department. The marketing department is related to HR, production, finance, and Store departments. When the required products are available in the stores for the dispatch, the marketing department dispatches the item as per the order. After the delivery of goods, marketing department prepares the bill and give it to the salesman. Either the salesmen collect the amount from the dealers and remit the amount in the cash counter along with the copy of bill or the dealers or distributors directly pay. Marketing function and sales function do have interdependence between each other as to increase sales they need to market the product. The interdependence of Purchase department with the production, finance, quality control and HR department is necessary as it deals with products, its quality, payments and man power. They check the quality of goods packed before dispatch. The interrelation of finance department is between materials, production, marketing, and Purchase, Store, quality control and HR departments. In addition to the major functions of budgeting, raising funds internally and from financial institutions and utilization of funds for growth of performance, it deals with all the internal and external cash and payment transactions. Quality control department, material department and production department are interdependent each other. Quality inspection begins right from the procurement of raw materials. The raw materials are purchased and tested for quality to make sure that they are according to the standard. Quality is checked at each stage of production either by the quality controller or the worker itself OBSERVATIONS AND CONCLUSION
Export mainly to Gulf Countries, U.K., U.S.A and Australia. Presently the company is exporting 60% of its products and 75% market share in Kerala.
Total number of employees is above 2500. The company is an ISO 22000 certified company. The company won prestigious award for outstanding export performance by spices board India, for 11 consecutive years 1997-98 to 2008-09. The company is having an efficient logistics wing. The pickles are not available in the local markets. Eastern is not supporting any political or trade union activities inside the company. Company has NABL accredited lab facility. Company has strong employee morale.
SUGGESTIONS
It would be beneficial if the company could extend the market to other foreign countries also. Introduction of bottled pickles in the local market may bring in more sales Since there is high competition in the local, national and export market the company should try to maintain quality, taste and better customer relations in the future also. Being price competitive in the local market is an inevitable need to meet the competitions. More attention is preferably to be given into training and development of employees Give proper awareness about ISO standards among consumers. This will help to improve product image. Company can introduce customer care service for handling complaints and suggestions. The company has to provide humidity control facilities inside the plant. The can introduce E- commerce facility to increase the sales.
CONCLUSION The organizational study conducted at Eastern Condiments Pvt. Ltd., was a general study regarding all functions and aspects of Eastern Condiments Pvt. Ltd., and has been primarily focused on Human Resource, Marketing, Finance, Production, and Export & E.D.P. Eastern has achieved these enviable heights mainly due to the hard work and commitment of quality besides bringing good product at right prices to the consumers. The study helped me to understand that how the company identifies the right taste of the consumers and how it became the leading brand in south India and largest exporter of spice powders in consumer pack from India. I could conduct a SWOT analysis of the company which encompassed almost all the functional aspects.