OBJECTIVES OF THE STUDY

1) 2) 3) 4) 5) To get an idea about the organization. To familiarize with different management activities. To get an idea about the authority structure and effectiveness of various departments To analyze the strengths, weaknesses, opportunities and threats of the Company. To fulfill the requirement of the curriculum. 6) To study the functional aspects of the departments of KSE LIMITED.

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INTRODUCTION

Placement Training Report

University of Calicut

INTRODUCTION

Kerala Solvent Extraction was registered as a public limited company on 25th September; 1963.The Company was later renamed as KSE Ltd and listed in the stock exchanges of Mumbai, Chennai and Kochi. KSE, a Company having an annual turnover of RS 187 crores, is the largest manufacturer of cattle feed. It is marketing annually about 1.8 lakh tones of superior quality cattle feed KSE is in the oil extraction Industry for the past 31 years The Company has secured the National Productivity Award for the year 20012002 for being first in terms of production efficiency in the animal feed sector. This is the sixth time in a row that the Company is being selected for this most coveted award. KSE, with a capital base of Rs.36Crores embarks on an expansion to double its Solvent Extraction capacity and add a most modern eco friendly vegetable refining plant.

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University of Calicut

INDUSTRYPROFILE

Placement Training Report

University of Calicut

INDUSTRY PROFILE
The solvent industry has achieved a phenomenal progress and at present there are 520 units having overall oil cake or oil seed processing capacity of more than 24.6 million tones/year, which included rice bran processing capacity of more than 9.9 million/year. The solvent extraction plays important role in the oil economy. Solvent extraction in India was started in 1945.It had to struggle for more than 20 years to establish itself.

Crisis of coconut industries in Kerala in 1960`s

In the 1960`s there was a crisis in coconut oil extraction industry in Kerala. After conversion from wooden ghani`s to rotaries the cost of the production had increased considerably. By using this new method, they were able to extract more oil from the coconut cake. Earlier 20% of oil was retained in the coconut cake, now it has reduced to 12% Although Kerala produces 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 wasnt 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 modernization of their mills. At that time Dr.P.S.Loknathan committee setup to study the feasibility of

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starting new industries in Kerala, recommended of establishment of 3 solvent extraction plant in Kerala and it was also proposed that one should be located in Thrissur itself.

Coconut oil millers co-operative society

Lion share of copra went to mills in Bombay and they were able to generate good profits. To overcome this situation a co-operative society was formed by name coconut oil millers co-operative society and it was decided that this society would act as an agent of state trading corporation for distribution of copra. By the seeing the performance of the Bombay group an investigation department was assigned to investigate it. Then they found out that they were using expeller mills for extracting oil and was able to reduce the oil content up to 6%. The industries in Kerala later began to follow it.

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COMPANYPROFILE

Placement Training Report

University of Calicut

COMPANY PROFILE
THREE DECADES OF QUALITY It was in 1963 Kerala Solvent Extraction Limited now
known as KSE Ltd. entered the solvent extraction industry, setting up the very first solvent extraction plant in Kerala. The traditional coconut oil industry in the State was facing a decline then. Though the largest producer of copra in the country. As much as 80% of it, Kerala lacked the infrastructure to exploit the potential of its abundant produce. While the oil industry in other parts of the country was thriving, in Kerala it was struggling. The Dr. P.S Lokanathan Committee, set up to study the feasibility of starting new industries in Kerala, recommended the establishment of three solvent extraction plants. And one of them, in Thrissur district. The oil mill owners in and around Irinjalakuda, who where thinking in similar lines saw the opportunity and took the initiative to establish a solvent extraction unit. Thus was KSE born.

On the road to success, there were many hurdles.

Initially, the mobilization of capital posed the greatest challenge. The future looked grim. But determination and optimism paid off. The solvent extraction plant went on stream in 1972 and in 1976 a new plant was set up to manufacture ready mixed cattle feed, which was pioneering step. Since then there was no Looking back.

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The last three decades have seen KSE emerging as the leader in solvent extraction and ready mixed cattle feed in the country. And through these years of consolidation and diversification, KSE has created a niche for itself.

Today KSE commands the resources, expertise and

infrastructure to manufacture a range of live stock feed, in high volumes, coconut oil from coconut oil cake, and refined edible oil. Driven by a commitment to high standards of quality, KSE has not only won customer confidence but also national recognition through several awards and accolades.

KSE had computerized its operations way back. In the year 1999, KSE went on to upgrade its EDP setup further. A custom made ERP software was developed for its units and head office through M/s.R.R.Software Pvt Ltd, Cochin and Online computerization was fully implemented at all its plants. Being custom made for KSE this ERP software, with SQL RDBMS, front end on Visual Basic and Windows NT OS, seamlessly had integrated all functions of the organization viz FA, Inventory, Billing, Payroll, PPC, MIS, Share Accounting etc. The Head office at Iringalakuda has 2 Servers and 40 Nodes running the application. Other units, in all, have about 8 Servers and about 50 Nodes. Their latest plant at Vedagiri, Kottayam has a computerized control room for monitoring, homogenization, size reduction, batching, pelletisation, pellet cooling and aspiring systems.

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From a single unit, solvent extraction plant, KSE has grown into a multi-unit, multi-product organization. Infrastructure for growth has always been viewed as a priority at KSE. With modern manufacturing facilities spread over three states, KSE caters to a vast belt stretching across Southern India. With a strong commitment to customers and product quality and being cost competitive, KSE stands poised to meet new challenges.

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GROWTH CHRONICLE
1972 Solvent plant commences operation 1976 Mixed cattle feed production begins 1987 Cattle feed production reaches 180 tonnes & Introduction of computers in the factory and office 1988 A new mixed cattle feed plant starts operation at Swaminathapuram, in Tamil Nadu with a daily production capacity of 180 tonnes 1989 A solvent unit with a capacity of 120 tonnes per day commences operation at the Tamil Nadu plant 1990 Introduction of KS Supreme Pellets, a bypass protein cattle feed in the market 1991 Opens its Palghat branch 1992 Cattle feed manufacturing begins in third party units 1993 Enters export market

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1994 Introduction of feed supplement KS Forte Public issue and listing of shares 1995 Vegetable oil refining plant commissioned KS Supreme - Sunflower Refined Oil launched Calicut branch opens 1996 240 TPD cattle feed commences at Vedagiri, Kottayam Dist., Kerala 1997 Company renamed as KSE Ltd. 1998 Fourth feed production unit at Palghat Launches Dairy project 1999 A modern Childrens' Park and Information Center have been completed at Irinjalakuda for the benefit of the public. Company introduces KS Deluxe Plus the new pellet feed in HDPE bags for Kerala market. 2000 Company starts production and distribution of milk and milk products from Konikkara and Thalaysthu Dairy Units

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PRODUCTION UNITS KERALA 1) 2) 3) 4) 5) KSE LIMITED IRINJALAKUDA UNIT KSE LIMITED VEDAGIRI UNIT KSE LIMITED PALAKKAD UNIT KSE LIMITED EDAYAR UNIT, KOCHI. KSE LIMITED KONIKKARA (DAIRY UNIT) TAMIL NADU 1) 2) 3) KSE LIMITED SWAMINATHAPURAM UNIT KSE LIMITED THALAYATH (DAIRY) KSE LIMITED MODAKURICHI, ERODE KARNATAKA 1) KSE LIMITED MYSORE UNIT
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AWARDS AND RECOGNITION

Kerala's first solvent extraction plant No: 1 in processing coconut oil cake through solvent extraction in India Winner of S.E.A. National Awards and State Productivity and Safety Awards continuously for 14 years including the current year

Front-ranker in mixed cattle feed production in India Recognition from Animal Nutrition Society for contributions in cattle feed Manufacturing Kerala's first export mixed cattle feed Tamilnadu productivity council safety award Kerala state productivity council award

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BOARD OF DIRECTORS
CHAIRMAN AND MANAGING DIRECTOR M.C.PAUL EXECUTIVE DIRECTOR T.O PAUL WHOLE- TIME DIRECTOR P.K. VARGHESE DIRECTOR AND LEGAL ADVISER A.P.GEORGE DIRECTORS K.P.JOHN T.C.MATHEW P.D.ANTO Dr. K.C.VIJAYARAGHAVAN JOHN FRANCIS K. T.R. RAGULAL CHIEF GENERAL MANAGER ANAND MENON. SECRETARY-CUM-CHIEFFINANCE MANAGER R.SANKARANARAYANAN
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VISION We shall endeavor to maintain leadership through quality products, explore new avenues in product development and marketing, create a stronger bond between the management, work force, dealers and customers, contribute to social development and rural upliftment, and constantly strive for excellence in all spheres of our activities

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PRODUCT PROFILE

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PRODUCT PROFILE
The main products marketed are 1) K.S CATTLE FEED It includes six types. They are: A) K.S MASH B) K.S SPECIALMASH C) K.S SUPER MASH D) K.S DELUX PELLETS E) K.S DELUX PLUS PELLETS F) K.S SUPREME PELLETS
2)

KS SUPREME

(Refined sunflower expeller oil)

3) KEYES FORTE 4) MILK PRODUCTS WHICH INCLUDES A) K.S PAAL. B) K.S GHEE. C) K.S CURD. D) BUTTER MILK. E) VESTA ICE CREAM.

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ORGANIZATION STRUCTURE

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ORGANIZATION STRUCTURE
BOARD OF DIRECTORS

EXE.DIRECTOR

MAG.DIRECTOR

WHOLETIME DR

GENERAL MGR

FINAN.MGR

PUR. MGR

PER.MGR

MKT.MGR

QTY.MGR
CHIEF.NUTRI

PRO.MGR

ASSTA/C MGR

SHARE.DEPT

EXE.OFF

SECUTIY.OFF
ASST.MGR

ASST.FIN.MGR

EXE.OFFICER
OFFICER ASST.SALES MGR CUSTOMER SERVICE CHEMIST CLERK

EXE.OFFICER

OFFICER

OFFICE.ASST

OFFICE.ASST SECU. SUPER VISION SALES.EXE LAB.ATTEN

CLERK

CLERK SECU.GUARD OFFICE.ASST SALES SUPERVISOR

CLERK OFFICER

SALES REPRESENTATIVE

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ENGINEER
ASST.PLANT.ENGR RR MAINTENANCE FOREMAN ELE. SUPERVISOR STORES SUPERVISOR ELECTRICIAN BOILER OPR MAIN.OPR STORES CLERK ELE.ATTEND ASST.OPR ASST.OPR WORKER PLANT ATTN WORKER WORKER GODOWN ASST

ELECTRICAL FOREMAN STORES OFFICER

GODOWN EXE

GODOWN SUPERVISOR

SHIFT ENGR

SOLVENT OPERATOR

CATTLE FEED OPR

REFINING PLANT OPR

ASST.OPR ASST.OPR ASST.OPR

WORKER WORKER

WORKER

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HUMAN RESOURCE DEPARTMENT

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HUMAN RESOURCE DEPARTMENT

FLOW OF AUTHORITY

HUMAN RESOURCE MANAGER

EXECUTIVE OFFICER

SECURITY OFFICER

SECURITY The Personnel department was seen as a place where the lesser productive OFFICER SUPERVISOR

employees could be placed with minimal damage to the organization ongoing operation. Individuals in the personal department were perceived as those JUNIOR SENIOR responsible for planning company picnics, vacation schedules and retirement parties. Personnel as an activity were seen as a necessary but unimportant part of the organization. Fortunately things have changed for the better and the status of the personnel department has improved enormously over the years.
OFFICE ASSISTANT
WATCHMAN
SENIOR ASSISTANT SECURITY GUARD OFFICER SECURITY GUARD

Personnel department is the main and most important department of a manufacturing concern.
CLERK

FUNCTIONS OF PERSONNEL DEPATMENT

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1. Recruitment 2. Man power planning 3. Welfare functions 4. Grievance handling 5. Discipline 6. Industrial relations 7. Public relations 8. Job description 9. Job analysis 10.Job specification 11.Training 12. Performance appraisal

EMPLOYEE SELECTION PROCEDURES

Employees are selected strictly based on their educational qualification, work experience technical know-how and age. Company will do the recruitment by giving ads in newspapers, through employment exchange, and by promoting its on employees based on their performance.

REMUNERATION
There are three types of wage earners: A) UNSKILLED BUT PERMANENT WORKERS GETS DAILY B) BADALI WORKERSWAGES ON WEEKLY BASIS WAGES

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C) OFFICE STAFFSALARY ON THE LAST WORKING DAY OF EVERYMONTH

SALARY CONSIST OF
1) 2) 3) BASIC PAY FIXED DEARNESS ALLOWANCE VARIABLE DEARNESS ALLOWANCE

ALLOWANCES
1) DEARNESS ALLOWANCE This is given to permanent employees. D.A is divided into two Classes:a) Fixed DA: Calculated at the rate of 15% of basic salary b) Variable DA: Based on cost of living index published by govt of Kerala 2) CONVEYANCE ALLOWANCE 3) WASHING ALLOWANCE 4.) CANTEEN SUBSIDY 5.) LEAVE & TRAVEL ALLOWANCE

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6.) HOUSING SUBSIDY 7) SHIFT ALLOWANCE 8) OVERTIME ALLOWANCE 9) SCHOLORSHIP FOR EMPLOYEES CHILDREN 10) EMPLOYEE WELFARE FUND

STATUTORY LIABILITIES
1) PROVIDENT FUND: From the basic salary the company and the

employee channelise 12% into the provident fund a/c equally. Out of the 12% contributed to P.F fund 8.33% are transferred to the pension a/c.

2)

EMPLOYEES STATE INSURANCE: The Company pays about 4.75% of

total salary of employees to E.S.I. The employee pays a contribution of 1.75% of total salary.

3) fund

GRATUITY: An employee needs minimum 5 years of service to avail this

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4)

BONUS: It varies according to their grades.

TRADE UNION
In this company there are 4 recognized trade unions like INTUC, CITU, BMS. A committee consisting of Chairman, Managing director, Whole time Executive Directors, General Manager, Works Manager and Personal Manager approve the demands of workers.

WORKERS WELFARE ACTIVITIES

The company established a trust known as Employees welfare trust in which 20 Rs is paid both by the employees and the company every month. Additional

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funds are provided to employees during the death of employee, or in case of employees siblings marriage.

SAFETY MEASURES
FOR SAFETY OF WORKERS AT PLANT, THEY ARE PROVIDED WITH 1) 2) 3) MASK FIRST AID FACILITY DUST EXTRACTION SYSTEM in plant, which helps to suck the dust

arising at the time of production.

LEAVE
1) CASUAL LEAVE: 9 DAYS FOR WORKERS AND FOR STAFF IS 11. 2) PRIVILAGE LEAVE: 15 DAYS PER YEAR. 3) SICK LEAVE: UPTO 90 DAYS.

RETIREMENT
Retirement age of employees is 58 years.

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MARKETING DEPARTMENT

MARKETING MANAGER SALES MANAGER MANAGER SALES EXECUTIVE SALES EXECUTIVE

CUSTOMER SERVICE MANAGER

SENIOR ASSISTANT

SENIOR ASSISTANT

OFFICE ASSISTANT

OFFICE ASSISTANT

CLERK

CLERK

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The company must design a marketing organization that can carry out marketing strategies and plans. If the company is very small, one person might do all of the research, selling, advertising, customer service and other marketing activities. As the company expands a marketing department emerges to plan and carry out marketing activities.

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The most common form of marketing organization is the functional organization in which a functional specialist heads different marketing activities are headed by a functional specialist, a sales manager, advertising manager, marketing research manager, and customer service manager. Managing the marketing function would be hard enough if the marketer had to deal only with the controllable marketing mix variables. But the company operates in a complex marketing environment consisting of uncontrollable forces to which the company must adopt. The environment produces both threats and opportunities. The company must carefully analyze its environment so that it can avoid the threats and take advantage of the opportunities.

IN THE COMPANY
The department headed by marketing manager and under him there are two assistant managers one for sales dispatch and other for customer service and sales promotion. The company incurs less advertisement cost. As for the kind of products its advertisement needs a different way of promoting its products.

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The company gives dealer board to dealers as an advertisement for their product. The other advertisements used are 1) Product pamphlet 2) Notices 3) Cinema slides 4) Cloth banners 5) Wall paintings 6) Yearly calendars.

SELECTION OF DEALER
The field staff under assistant customer service and complaint manager will evaluate the dealer on the basis of his financial capabilities and the scope of demand of products in the area. If the dealer doesnt buy at least one load of cattle feed in row of 3 month, automatically the company will terminate his dealership.

PRICING METHOD
In the case of oil price is based on Cochin market .the price is based after evaluating of raw material and procurement and storage costs plus profit.

DISTRIBUTION
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There are two types of distribution 1) 2) EX FACTORY RATE --- company need not bear the transportation and RATE AT DESTINATION --- company need to bear the transportation & insurance cost. insurance cost.

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SWOT ANALYSIS

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STRENGTH
1) Experience in the field over 25 years 2) Leadership in the market 3) Reputation & brand image of the co. & consistent quality of its products 4) Good network of dealership 5) Capable marketing personnel 6) Financial strength of the company 7) Acceptability of the feed & its quality standards in the market 8) Fully computerized plant 9) Efficient employer employee relationship

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10) Excellent infrastructure for manufacturing products.

WEAKNESS
1) 2) 3) As industries are importing cheaper oils which affects the demand of Inadequate promotional activities for dairy products. Stagnant numbers in cattle population affecting market growth in future

solvent extracted coconut oil.

OPPORTUNITIES
1) Expanding its distribution areas 2) Growing demand of its products

THREATS
1) Competition from other manufactures of organized and unorganized sectors 2) Probable entry of foreign entities 3) Indirect control by government over price of milk

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4) Import of cheaper oils for industrial consumption leading to fall in demand for solvent extracted coconut oil

SOCIETAL ETHICS
PROPER DISPOSAL OF WASTES THEREBY CONTROLLING

ENVIRONMENT POLLUTION PROVIDING DIRECT AND INDIRECT EMPLOYMENT 25 LAKHS donated to Tsunami Relief fund

10 LAKHS DONATED TO EARTHQUAKE RELIEF FUND OPENING OF K.S PARK Childrens Park and Information Centre has been opened for the benefit of the public

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SUGGESTIONS
1) 2) 3) 4) 5) 6) Use of more board display advertisement. Reference group should be formed to educate consumers. Give timely rest to workers in order to produce consistent performance. To increase the productivity to meet the growing demands. Providing proper safety equipments to protect them from hazards. Company can earn more profit by expanding the market.

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CONCLUSION

KSE, a Company having an annual turnover of Rs. 187 Crores, is the largest manufacturer of cattle feed. It provides employment to around 1500 numbers directly and another 5000 indirectly. Its shares are being listed in three stock exchanges in Cochin, Chennai and Mumbai. The Company commenced its production in the year 1972. It is marketing annually about 1.80 lakh tones of superior quality cattle feed. KSE had successfully launched its Vesta Brand Ice Cream which has been well accepted in the market for its matching international quality standards. KSE plans to add more ice cream production units across Kerala in the coming years to serve all pockets. KSE is in the oil extraction Industry for the past 31 years. It is having two solvent plants with processing capacity of 100 tonnes per day. The Company has also a chemical oil refining plant of 20 tonnes per day. The Company has secured the National Productivity Award for the year 20012002 for being first in terms of production efficiency in the animal feed sector. This is the sixth time in a row that the Company is being selected for this most
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coveted award.

It is pertinent to note that in the Kerala industrial scenario, where many Companies are closing down, either due to labour unrest or due to other economic reasons, KSE continues to commence new ventures each year and run them successfully. The Company is having six Units at different locations. The relation with the labour Unions of all these Units is very warm and cordial. KSE, with a capital base of Rs. 36 Crores embarks on an expansion to double its Solvent Extraction capacity and add a most modern ecofriendly vegetable refining plant. The Company has already identified Six Acres of land in the KINFRA Small Industries Park, Koratty for this expansion.

In the first phase the Company plans to install one 200 MT per day solvent plant for processing Oil Cakes and also a 100 MT per day physical refining plant. Both these plants will be of international standard using most modern technologies, where the process loss is kept to the minimum. The project will generate direct employment to 125 and indirect employment to another 500 numbers. In the second phase, a 100 MT per day oil fractionation unit will also be added. As a pioneer in the solvent extraction industry, leader in cattle feed manufacture, and an emerging force in ice cream and a resourceful new entity in dairy development and milk products, KSE is determined to move with the times, taking on new challenges, achieving new milestones.

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BIBLIOGRAPHY
REFERENCE BOOKS Marketing Management Human Resource Management Production and Operation Management Philip Kotler Ashwathappa .K. Ashwathappa. K.

WEBSITE WWW.KSELIMITED.COM

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