Life Line Feeds India Pvt Ltd

An Organization Study at Life Line Feeds (India) Pvt. Ltd

1. INTRODUCTION

The Indian economy, is largely agriculture based the contribution of agriculture and allied

activities are about 40% in national income. Indian agriculture is based on the economic

symbiosis of crops and animal production. Small marginal farmer own almost 80% of the

total holding.

With the increase in human and livestock population and per capita reduction in average food

production, forge production, diversified use of available land mass to roads, industries and

human rehabilitation and also fast deterioration of ecosystem due to deforestation and

increase in soil erosion it becomes necessary to consider the alternative use of land mass

sustainable food security.

The necessity and opportunity gave the way to birth to the of M/s Om traders and estate

supplies in 1986 in Chikmagalure as dealer in cattle feeds and poultry products. Service and

better competitiveness gave rise to business growth to sell feeds up to 3000 tones/month.

Intension to serve made the company to buy back the eggs from farmers which became a

means of faster recovery system which helped life line feeds to market the eggs, which now

holds the 75% of the market share in Chikmagalure (30 thousand eggs per month).

Huge potential in broiler market in the region brought the company into broiler production

with an initial capacity of five hundred birds/week in the year 1990. The consistency, rates

and the broiler production economics prompted the company to venture into the feeds

business giving rise to m/s LIFE LINE FEEDS (INDIA) PVT LTD in the year 1996.

R.V INSTITUTE OF MANAGEMENT 1


INDUSTRY PROFILE

1.1 Poultry Industry

Poultry industry is the raising industry in the world, today we can see most of the farmers

have started to rear birds for commercial purpose.

It is believed that the Indian Poultry Industry is 5,000 years old, since last 4 decades it began

to witness remarkable growth from backyard to poultry industry.

The organized sector of poultry industry is contributing nearly 70% of the total output and the

rest 30% in the unorganized sector. The broiler industry is well dominated in southern states

in our country with nearly 60-70% total output coming from these states. The layer industry

once again is represented more in southern states especially, Andhra Pradesh, Tamil Nadu

and Maharashtra producing nearly 70% of the country's egg production. India's 75% of egg

produce is consumed by the 25% population living in urban and semi-urban areas. Presently

about 800 hatcheries are operating in the country.

In ancient most of them are having their own poultry farm in a very small number of birds

for their own consumption , later day by day when the requirements increased they started

rearing birds for commercial purpose.

Poultry Industry in India:

Poultry is one of the fastest growing sectors in India and also around the world of all the

agriculture related sectors. While the production of agricultural crops has been rising at a rate

of 1.7 to 2 percent per annum that of eggs and broilers production has been rising at a rate of

8 to 10 percent per annum. As a result, India is now the world's fifth largest egg producer and

the eighteenth largest producer of broilers. Driving this expansion are a combination of

factors - growth in per capita income, a growing urban population and falling real poultry

prices.

In this context, there have been questions raised about the effect of production of poultry

products production through structural factors, policies-on small-scale producers. Do the



transaction costs, policy distortion and environment externalities place the small-scale

producer at a disadvantage? Why do some poultry farms have higher income than others? Do

large farms earn more profit per unit of output than small ones? What explains the

differentials in profitability? This report which forms part of a study on poultry, seeks to

address these questions. It attempts to assess the impact of policy and environmental factors

on the scale of poultry operations in India as well as the implications of that impact for small-

scale production. The study aims to collect and analyze consistent data.

Poultry sector is one of the fastest growing industries of the Indian economy than any other

sector contributing about $230 million to the Gross National Product. But in statistical terms

the industry has reported a loss of over Rs 4,000 crores as an aftermath effect of different

diseases to the birds. The contribution of the small rural farmers points out the importance of

integration of the poultry farming and the allied sector. Suguna Poultry Farm is the pioneer in

poultry integration and contract poultry farming in India, with presence in nine states and

membership of about 15,000 contract farmers. Some of the poultry firms have set an example

of integration and contract farming before the industry and has proved to be beneficial for the

company. Integration could be the way forward for the entire industry towards expansion and

success.

Change from the household activity to professional activity

The poultry sector in India has undergone a major shift in structure and operation. A

significant feature of India's poultry industry has been its transformation from a mere

backyard activity into a major commercial activity in just about 40 years. This transformation

involved sizeable investments in breeding, hatching, rearing and processing. Farmers in India

have moved from rearing non-descript birds to today rearing hybrids, which ensure faster

growth, good live ability, excellent feed conversion and high profits to the reapers. This is

possible because of the initiatives of the private players and government’s policies and major

improvements in the field of genetic researches that took place in the indigenous market and

other facilities such as poultry equipments and poultry processing sectors and to be noted is

that India is one of the few countries that have made enough investment in the pathogen free

egg production projects.



Medical uses

Chicken eggs are used to produce source of molecules to treat snakebite. Duck embryos are

used in manufacturing anti-rabies vaccine. Diet eggs or designer eggs are going to boost

special eggs for vitamin E substitution, Omega fatty acids and antioxidant requirements.

Poultry eggs and meat have got sensorial, curative, nutritive and therapeutic potential. Poultry

is labor intensive and has a potential to create 25,000 more jobs on the consumption of one

more egg per capita and similarly 25,000 additional jobs on the consumption of 100 gm more

chicken meat.

By the year 2013 India is expected to produce 260 million layers (77700 million eggs) and

3500 million broilers (5.9 million tones). Per capita consumption of meat will be around 3.5

to 4.5 kg and eggs will be around 65 and it is expected to contribute Rs 60,000 crores. No

agriculture sector is growing as fast as the Indian poultry, making it the most dynamic rapidly

emerging sector of livestock economy. The export of poultry meat at present is worth Rs 150

crores and is expected to reach Rs 1,500 crores by 2010. Indian agriculture contributes 28 per

cent to the GDP of which 17% is contributed by poultry. Poultry is the only industry where

modern technology co-exists with the traditional poultry keeping because poultry technology

is appropriate, adaptable, accessible, available and affordable both for the rich and the poor.

Growing Production of Eggs and Broilers

The eggs and the meat are the major end products of the poultry sector in India. Now the

average production of eggs is about 37 billions in number and boiler is about 895 million, and

the poultry meat is about 735,000 tones. There has been an improvement in facilities

provided to the manufacturers of egg powder and frozen/ processed boiler meat essentially to

cater to both domestic and international markets.

Issues Relating to Animal Welfare and Environmental Pollution

Issues relating to animal welfare and environmental pollution by poultry units have been of

increasing concern in developed countries such as the U.S. and the European Union (E.U.).



But in India these issues have not yet emerged as critical although they are discussed at

length in various seminars and forums on poultry production. Considering globalization and

the International trade in poultry products, however, these issues may assume significance in

a few years because of pressures from importing countries such as those in the E.U.

1.2 Industry structure

Structure of the Poultry Industry

The structure of India's poultry industry varies from region to region. While independent and

relatively small-scale producers account for the bulk of production, integrated large-scale

producers do account for a growing share of output in some regions. Integrators include large

regional firms that incorporate all aspects of production, including the raising of grandparent

and parent flocks, rearing ducks, contracting production, compounding feed, providing

veterinary services, and wholesaling.

Variations in the poultry development according to regions

Another important aspect of poultry development in India is the significant variation in the

industry across regions. egg production in India by state during 1998-99 depicts that the four

southern states - Andhra Pradesh, Karnataka, Kerala and Tamil Nadu - account for about 45

percent of the country's egg production, with a per capita consumption of 57 eggs and 0.5 kg

of broiler meat. The eastern and central regions of India account for about 20 percent of egg

production, with a per capita consumption of 18 eggs and 0.13 kg of broiler meat. The

northern and western regions of the country record much higher figures than the eastern and

central regions with respect to per capita availability of eggs and broiler meat.

Poultries nearer to cities and towns

There has also been a growing tendency for poultry units to be concentrated around urban

areas because of the existence of ready markets for the end products of poultry production.



Rural Poultry Production

Rural poultry production constitutes important component of agricultural economy in India,

small poultry holder are practically capable of more significant contribution to alleviate

malnutrition, poverty and unemployment. A spectacular progress has been made from

subsistence to sustainable production system. Indian backyard population increase is only by

16% in the last 30 years from 60 to 70 million. China's 76% of total egg comes from rural

backyard production. India requires both mass production as well as production by masses.

Policy Measures

The policy measures that are required to improve the poultry industry must involve:

(a) Improving infrastructure facilities, this will help not only to stabilize the price of poultry

products in the domestic market, but will also make them available in remote areas.

(b) Creating an efficient marketing channel that will help provide remunerative prices to

producers (in other words, India's marketing set-up should also grow along professional

lines).

(c) Increasing maize production, which will involve using GM (genetically modified) seed

varieties or, alternatively, will necessitate finding other sources of feed ingredients that can

replace maize.

1.3 Industry volume

Operation scale

In India the growth of poultry sector has been marked by increase in farm size. In earlier

years broiler farms had produced on average few hundred birds (200-500 chicks) per cycle.

Today units with fewer than 5,000 birds are becoming rare, and units with 5,000 to 50,000

birds per week cycle are common. Similarly, in layer farms, units with a flock size of 10,000

to 50,000 birds have become common. Most farms in India are of average size which

produces around 10000 to 25000 eggs per week.



Small units are probably finding themselves at a disadvantage because of high feed and

transport costs, expensive vaccines, and veterinary care services and the non-availability of

credit. Some small units are reported to be shifting from layer to broiler production because

output in broiler units can be realized in six weeks. This is also due to he supports given by

the government to the production of the boilers and in egg production and also I the

production of meat producing chickens.

Low Per Capita Consumption

Even though India is the world's eighteenth largest producer of broilers and fifth largest

producer of egg, its per capita consumption of these products is only – one kilo of poultry

meat and 37 eggs per person per annum. Here, again, there are differences in per capita

consumption between rural and urban areas and also across the region. Per capita

consumption of eggs is only 7.7 per annum in rural areas compared with 17.8 per annum in

urban areas.

Exports

Exports of poultry products from India comprise table eggs, meat, live birds and value-added

products such as egg powder and frozen yolk. The value of aggregated exports was Rs. 1,683

million in 1996-97. Exports were the level of Rs.5 billion by the year 2000.

Employment

The employment in the poultry sector was not so healthy about three decades ago then the

production was 10 billion eggs and 30 million boilers this was not a good number the total

number of people employed were very low and it was not so encouraging. As the sectors

income and employment in agriculture sector started decreasing the sectors such as poultry,

dairy started gaining the upper hand and under went a significant change and progress. With

the demand for poultry increasing and production reaching 37 billion eggs and 1 billion

broilers, this sector now employs around 1.6 million people. At least 80 percent of

employment in the poultry sector is generated directly by these farmers, while 20 percent is



engaged in feed, pharmaceuticals, equipment and other services required by the poultry

sector. Additionally, there may be a similar number of people roughly 1.6 million who are

engaged in marketing and other channels servicing the poultry sector.

1.4 Current Scenario

Changes in consumption pattern

An analysis of consumption data originating from National Sample Survey (NSS) rounds

reveals many interesting facts. First, 42 percent of households are vegetarian in that they do

not eat fish, meat or eggs.

The remaining 68 percent of households are non-vegetarians. Over time there has been a

gradual shift from vegetarianism to non-vegetarianism. The change is more visible in rural

areas than in urban areas. For instance, between 1987-88 and 1999-2000, the proportion of

households consuming only one of the three items - fish, meat or eggs - increased by only one

percent in urban areas, while in rural areas this proportion increased by four percent. Second,

calculation of income elasticity of demand for different commodity groups shows that the

commodity group that includes meat, fish or eggs ranks second in the quantity of

commodities consumed in rural areas (milk and milk products rank first), while in urban

areas consumption of the meat, fish, or egg commodity group ranks third.

The estimated income elasticity is 1.01 in rural areas and 0.66 in urban areas. Third, the price

elasticity also follows the same order. Meat, fish or eggs have the high price elasticity of 0.75

in rural areas and 0.68 in urban areas. Fourth, estimates of income and price elasticity

calculated for each of the four expenditure groups show that those elasticities tend to decline

as one moves from the poor to the non-poor and the wealthy. The income elasticity is low for

the wealthy - 0.5 in rural areas and 0.6 in urban areas. The other two income groups in rural

areas have high-income elasticity - greater than unity. Price elasticity’s are greater than unity

for the very poor and the poor in rural areas, and for the very poor in urban areas. A

significant policy implication of these consumption habits is that there is lot of scope in

raising the demand for poultry products in rural areas.



Constraints on the Growth of the Poultry Industry

A major constraint affecting the growth of the poultry industry in India is the lack of basic

infrastructure such as storage and transportation, including cold chain. As a result, there are

wild price fluctuations in the prices of poultry products, i.e., eggs and broilers. Another

constraint to growth is an inefficient marketing system. The presence of so many market

intermediaries harms both the producer and the consumer. A third problem relates to the price

Availability of feed resources.

Maize or corn plays a major role in broiler production, as it constitutes 50 to 55 percent of

broiler feed. As the broiler industry is growing at the rate of 15 percent per annum, the

demand for maize is thus likely to increase. Presently India grows only 11 million tones of

maize and only 5 million tones are available for poultry, which is not sufficient if the current

growth rate of the industry is to be maintained.

Recent positive developments of poultry industry

NABARD has committed to bring about rural prosperity through poultry.

Meeting of sub-group of poultry has asked for funds of Rs1095 crores for poultry

development during the 11th Plan and Rs 30,000 crores for the entire livestock sector

under various schemes of the Government of India.

India has resumed egg export.

Poultry farmers to get maize on concessional rate to use it as feed in poultry.

Poultry litter to fetch carbon credit in Andhra Pradesh with 3.5 mw power plant.

Presently 100% Foreign Direct Investment (FDI) is permitted in the food processing sector.

Also FDI in food retailing, covering dairy, poultry, marine, vegetables and fruits might help

the entire food processing industry grow. Poultry farming in India has transformed from a

mere tool of supplementary income and nutritious food for the family to the major

commercial activity generating the required revenue. The growth of the industry with steady

production of 1,800 million kg of poultry meat, 40 billion egg per year and employment

generation of about 3 million people indicates the future prospects for the industry. Changing



food habits, rising income of the middle class Indian, presence of private players, rising

market demand of the Indian poultry produce in the export market are some of the

contributing factors to the growth of the industry.



2.0 COMPANY PROFILE

2.1 Background and inception of the company

Necessity and opportunity gave birth to M/s Om traders and estate supplies in 1986 in

Chikmagalure as dealer in poultry and cattle feeds. Service and competitiveness up held the

business growth to sell feeds up to 3000 tones/month. Intension to service made the company

to buy back the eggs from farmers which became a means of faster recovery this helped life

line feeds to market the eggs which now captures 75% of egg market share in Chikmagalure

(30 lakhs egg/month).

Tremendous potential in broiler market in the region brought the company into broiler

production with an initial capacity of 500 birds/week in 1990. The fluctuation in the feed

consistency, rates and the broiler production economics prompted the company to venture

into the feed business giving rise to m/s LIFE LINE FEEDS (INDIA) PVT LTD in 1996.

History of the Organization:

At a time, when poultry industry growth was on the rise in 1985, Mr. Kishore Kumar Hegde a

visionary laid his first step in to foray of commerce to be one of the best players in poultry

industry. His vision, dynamism and strong urge to help the agro- based economy develop,

drove him to make a humble beginning as an animal feed distributor in Chikmagalure.

Today, M/s LIFE LINE GROUP, is a totally integrated conglomerate which harnesses its

focus on the development of the rural economy ,laying special emphasis on the state of art R

& D facilities. The group also follows latest scientific innovations in poultry management and

is abreast in adapting the latest technology and managerial procedures.



Philosophy

Life line feeds India as clear mission

Practice the logo Hatch to Health Through our

Strength quality possesses that spell optimum

Health to the chicken, and thereby give significant, health benefits to the consumer.

To make our brand Life Line’s Tender Chicken the Most recognized and preferred

source of poultry for the retail as well as institutional trade.

To foresee our customer’s needs ten years ahead because it is the consumer’s needs and

tastes that dictate the production process and allow us to grow and be in the business.

This was supported by M/s Om poultry farm with a capacity of 5000 birds/ week as a R&D

wing to M/s Life Line Feeds (India) Pvt. Ltd., here the research work goes on the basis of

The various aspects such as production efficiency based on weather, market rates of

ingredients, broiler prices, nutrient requirements etc. Two years of hard ship and dedication

was the success of M/s Life Line Feeds (India) Pvt. Ltd. Life line India pvt ltd has its

certificate under ISO 9001:2008 for quality assurance.

Today the unit producing 3000 tones of feeds/month, during later part of 2011, due to broiler

market crises, the chick production available in the market was affected and due to

inconsistent availability of chicks the returns were severely affected. Hence the company

ventured into breeding farm and chick production activity which can produce 8 lakh

chicks/month.

Watching the change in the concept of farming from individual to contract farming for better

competitiveness in the markets and volume based operation success, the company expanded

its wings both in forward and backward integration in 1993. The success story was

production efficiency at every level due to continuous research in the feed, hatchery and gave

better edge on the competitors in the industry.



The marketing of the broiler as commodity did not convince the company either in terms of

economies nor foresee any future in the business. This was overcome by venturing into

processing and retailing of chicken and branding the product as M/s Life Line’s Tender

Chicken.

The customer education, concept of hygiene and service gave the company the hope of

expansion of processing and is today having a production capacity of 13,000 birds / shift

processing unit at Chikmagalure. The experience of retailing in Chikmagalure prompted them

to venture retailing at Bangalore and has opened 19 retail outlets in Bangalore. The

processing unit is currently slaughtering 3,60,000 birds / month.

Facilities:

I. At the Breeding Farm, the 10,000 birds lay 1.5 million eggs a year, under good

management practices. The birds are fed with nutrients based on requirements at every stage

of life.

II. At the Hatching Unit, every week 75,000 chicks are hatched in a hygienic

environment, and graded for the best survivability at the integration farms.

III. At the Farms, the chicks are acclimatized to normal temperatures till they become

homoeothermic and are reared until they are ready for the market.

The Feeds Unit produces 35,000 tones of age-defined poultry and cattle feeds a year. The

nutrient requirements are changed in response to the needs of the market and environment

Benefits of the employee:

1. Provident fund

2. Health Coverage

3. All benefits of labor enactments such as leave, holiday salary, Min wages etc.,

4. Free accommodation for farm labors & retail shop staff

5. Free food for staff at Chicken Slaughtering Unit/ Hatcheries

6. Expenses at actual for Marketing/ Field staff.



7. Loan facility to employees with priority to health, house and marriage

Genesis of the life line group

Keeping with the pace of local market, the life line feeds (India) pvt ltd was commenced in

the year 1986 by K.Kishore Kumar Hedge. Starting with the animal feeds distribution and

supplies in the name of OM TRADERS AND Estate supplies.

In 1986 Mr. K Kishore Kumar Hegde who supported local farmers those who are running a

backward poultry farms in a very small number of birds for the purpose of trading. In 1987 he

established his own poultry farm with the number of 3000 birds in his own farm.

Till 1995 the company progressed under the proprietary concern later the real changes

were found in the concern or industry. The year 1996 the company increased its production

from 3000 to 20000 birds.1997 gave birth to the famous brand name life line feeds (India) pvt

ltd and so forth the give the new brand name” NANDAN FEEDS” for their feed this was

based on the name of the founder’s son. In the year 1999 introduction of the breeding farm by

the year 2000 they had started hatchery unit in the name of life line hatchery.

The marketing of the broiler as commodity did not convince the company either in terms of

economy nor fore saw any future in the business. This was overcome by venturing into

processing and retailing of chicken and branding the product as lifeline’s tender chicken in

2002.Processing unit with the production capacity of 200 birds per hour. The experience of

retailing in Chikmagalure promoted them to venture into retailing at Bangalore and opened 4

outlets in Bangalore in 2005.Then in the year 2006 they started chicken slaughter unit in

Karnataka State Industrial Estate at Gowdanahalli near by Chikmagalure with the capacity of

1600 birds per hour. At present the total turnover is 100 crores per Annum. 600 well trained

employees are working in this industry. Broiler producing 600000 Birds per month Feed

3200 mega tunes per month.



2.2 Vision and Mission

Vision:-

To be a zero defect company.

To state and demonstrate our ongoing commitment to nurture our employees and the

society resulting in a recognition that we are one of the best employers in this

industry.

To create wealth for all the key stakeholders of the company.

To achieve national dominance in selected business built around our core

competence through continuous product innovation, customer orientation and a focus on cost

effectiveness.

Mission

To build the philosophy of continuous improvement in day-to-day

activities.

To create a culture of excellence through an orientation to continually innovate and

improve productivity.

To know our customer’s needs and provide solutions that improves their

competitiveness on growingly.

To be committed and responsible towards the society in all aspects especially in creating a

clean environment.

2.3 Nature of Business Carried

The group enjoys the concept, knowledge from skilled man power, technical personnel,

constant interaction with the University of Veterinary Sciences Faculty and a well dedicated

team in all the segments of integration.



The company foresees the branding of chicken and selling of chilled/ frozen chicken with

brands will be the call of the day, as the slaughtering of the chicken in the city limits is going

to be banned in the coming days due to various pollution problems, public health issues etc..,

the retailing of the product not only helps in completion of the integration process but also

gains the margin which has been engulfed by the middleman in the commodity market.

Details of the organization are as under

Institution Nature of Business Experience

Om Traders Egg & Feed Trading 26 years

Om Poultry Farm Broiler production 14 years

R&D activity

Life Line Feeds Feed Production 15 years

( India ) Pvt Ltd., Hatching egg Production

Broiler Integration

Chicken Processing

Retailing of Broiler

Life Line Farms Broiler production 11 years

Life Line Hatchery Chick production 12 years

Life Line Chicken Chicken Trading & 9 years

Retail Shop

2.4 Ownership Pattern

Life line feeds solely owned by entrepreneur Kishore Kumar Hegde. From the past 26 years

he had converted company’s turnover from thousand rupees to several millions. But

entrepreneur depended mainly upon the finance source provided by Syndicate Bank head



branch of Chikmagalure. The bank also contributed to the growth of the company. There is

some charge on assets of the company.

Salary Structure of the Organization

Labor 3000 to 6000

Supervisor 4000 to 8000

In charge 6000 to 10000

Office 8000 to 12000

Manager 10000 to 20000

Accounting and financial practices;

The financial department has the responsibility of maintaining the accounts and exercising

the financial control. The function of account sections is to record the various transactions of

the company in financial terms apart from the quantitative records necessary to be

maintained. The main objective of finance department is

R.V INSTITUTE OF MANAGEMENT

60%

40% Owneers Con-tribution

Bank Finance

17


Financial analysis, planning and control.

Management providing firm’s asset structure.

Management of firm’s financial structure.

The Quality objective of the company

1. To strive for excellence in quality of products in domestic market and to be recognized as a

leading player.

2. To develop necessary competencies at all levels of operations and improve process,

products and service continuously.

3. To encourage participation of employees at all levels of operations and to form motivated

teams where they treat each other with mutual trust and respect.

4. To shoulder responsibility by maintaining a safe, clean and hygienic environment



2.5 Product Profile

A) Egg (Food)

The company is selling 26.4 million eggs a year. Bird eggs are a common food source. Most

commercially produced chicken eggs intended for human consumption are unfertilized, since

the laying hens are kept without any roosters. Fertile eggs can be purchased and eaten as well,

with little nutritional difference. Fertile eggs will not contain a developed embryo, as

refrigeration prohibits cellular growth.

Chicken eggs are widely used in many types of cooking. Dishes that use eggs range from

both sweet to savory dishes. Eggs may be pickled; hard-boiled and refrigerated; or eaten raw,

though the latter is not recommended for people who may be susceptible to salmonella, such

as the elderly, the infirm or pregnant women. In addition, the protein in raw eggs are only

51% bio-available, whereas a cooked egg is nearer 91% bio-available, meaning the protein of

cooked eggs is nearly twice as absorbable as the protein from raw eggs.

A boiled egg can be distinguished from a raw egg without breaking the shell by spinning it. A

hard-boiled egg's contents are solid due to the denaturation of the protein, allowing it to spin

freely, while the inertia of the liquid contents of a raw egg causes it to stop spinning within

approximately three rotations.

B) Chicken and its Placement: -

The company is producing about 0.6 million birds a year and 1.2 million chicks a year.

Chickens generally live five to eleven years depending on the breed. Male chickens are

known as rooster’s cocks, or cockerels. Castrated roosters are called capons. Female chickens

are known as hens. Young females are known as pullets. Domestic chickens are typically fed

commercially prepared feed that includes a protein source as well as grains. Chickens often

scratch at the soil to search for insects and seeds hick boxes into the house with the

appropriate number of boxes placed near each hover, do not stack boxes over three high with



out being sure to leave ample space for air movement between stacks. Before placing chicks

under the brooder, check to make sure the brooder is working and has the correct

temperature, that water founts are free of litter, and that feed is available in sufficient

quantities.

Unload the entire, place the chicks under the hovers. As the chicks are being removed from

the boxes, place the empty chick boxes against one side of the house to facilitate easy

removing after all chicks have been placed under the hovers. After the chicks have been

placed under hovers, go through the house to make sure that all chicks are local the water and

heat source. Remove all chicks’ boxes from the building for burning.

IMPORTANT :- starting at time placement, records should be kept current on mortally,

consumption, daily house temperature and vaccination dates as well as dates of reactions.

Brooding:

Brooding of Broilers:

Reduced area for the first 10 to 21 days, this area may be a strip along the side of the houses,

or a section across the house in the center or at one end. Usually from one-third to one-half

of the total area of the house is used for the brooding phase. Good ventilation for partial

house brooding work successfully. Consultation of serviceman or engineer is required prior

to going to partial brooding.

C) Feeders

Feeder lids (or filler flats) are used during the first 7-10 days. Begin placing regular feeders

at 3-4 days, so that all regular feeders will be in place and in use by the 7 th to 10th day. The

most widely used types of feeder are: had fill trough, had fill hanging tubes, mechanical chain

(trough type) and center less auger with pans (tube type)



Feeding

Numerous types of broiler feeding programs are in use today throughout the poultry

industry with the following two programs being the most widely used:

1. The feeding of a starter and finisher ration.

2. The feeding of a starter / grower and a finisher ration.

The length of time the birds will be on one ration or form of ration is usually recommended

by the feed manufacturer (compounder). Generally company should follow his program for

he has worked hard to develop rations that perform specific functions during given times with

the most economical price-performance relationship in the area.

Feed Formulation:

It is difficult, if not impossible, for the company to recommend a formula that meets the

many varied requirements of all poultry areas of the world. Therefore company has internal

nutritional experts having wide knowledge and experience in the field.

The Breeding Farm

The Breeding Farm house 50,000 breeder flocks with 40,000 birds in lay producing 7.5

million hatching eggs a year, under good managerial practices. The farms are located places

to ensure that they cannot catch any infection. The birds are fed with nutrients based on

conventional veterinary requirements at every stage of life.

The breeder eggs are carefully collected and cleaned. and sent to the grading station, when

they are sorted according to size and category to get good quality chicks or broilers. Further,

these graded hatching eggs undergo a fumigation process. to clean up the surface bacteria

before going into cold room, then to the Hatchery. Company Produces 1.2 million hatching

eggs a year, where breeders are kept on a high profile management system of lighting,

feeding and bio security regulations to produce quality fertile hatching eggs.



The Hatchery

At the Hatchery, every week, 1, 25,000 chicks are hatched in hygienic surroundings and

graded for the best survivability at the integration farms. The Hatchery has a capacity to hatch

5 lakhs chicks per month.

Before the eggs are placed in the incubator, they are rechecked for surfaced contamination

and cracks. For 21 days, the temperature and humidity is monitored every hour. So that the

embryo hatches into a good quality chick.

On the 12th day, the eggs are passed over a bright candling light, which makes the internal

contents of the egg visible, and can determine if the egg is fertile or infertile. Defective eggs,

Leaking eggs and reject are removed by the Candler. The chicks are graded, vaccinated

against viral diseases and kept in trays, which are lined with paper cuttings for the comfort of

the chicks before they are shifted to the broiler Farms in vehicles meant for chick

transportation. M/s LIFE LINE HATCHERIES produces 1.2 million chicks a year under

stringent disinfection and sanitation programmed to produce chicks of good quality.

Special Feed Requirements:

The season of the year also may have an effect on performance with better feed conversion

usually being attained in the summer. Since birds must convert feed into body heat when

temperatures are low, extra feed is required to produce a broiler at a given weight. On the

other hand, the overall gain in weight at any given age is frequently faster in the winter.



The Feed Mill

For good broiler growth, quality feed intake is very important. This is visible in the birds that

eat the most feed between 24 to 40 days, to attain the highest weight at 40 days.

At its own Feed Mill, Life line produces age - defined and quality 50,000 tones of poultry and

cattle feeds a year (4000 tons per month). Continuous research is done to gage the needs of

the market and environment, and the nutrient requirements are changed in response to it.

The sample of each ingredient is checked and analyzed, before it is used for feed

manufacturing, The ingredients are mixed in right proportions with amino acids, vitamins,

minerals under the supervision of the nutritionist, to suit the needs of the broiler. Before the

finished feed is dispatched to the Broiler Farms, the Laboratory confirms that it meets the

specifications. M/s LIFE LINE FEEDS (INDIA) PVT LTD produces poultry and cattle feeds

as per the standards specified procuring raw materials or manufacturing to get optimum

returns at the farm gate under various agro climatic conditions in South India. Shift

processing unit at Chikmagalure. The experience of retailing in Chikmagalure prompted us

to venture into retailing at Bangalore and has opened 19 retail outlets in Bangalore. The

processing unit is currently slaughtering 360000 birds / month.



team in all the segments of integration.



Infrastructure Facilities

1) Feed Mill

Located in one acre area of Chikmagalure industrial estate which is away from 6 km from

main city. This plant is equipped with basic infrastructure facilities.

2) Hatchery unit

This unit has occupied five acre of land which is 8 km away from the main city.

3) Chicken slaughtering unit

The Rs.6 crores Advanced processing plant, located on four and half acres in Amble

village in Gowdanahalli, Chikmagalure.

4) Retail Out let

The building is located in the K.M. Road inside the city of Chikmagalure.

5) Other infrastructure facilities

a) Canteen

b) Medical Room

c) Waste water recycle

d) Toilet

e) First aid boxes in all places

f) Ventilation

g) Emergency exit

2.6 Competitor Information

Venkateshwara hatchery ltd

VH was established in the year 1971 by padmashree Dr. B.V.Rao called father of “Indian

poultry industry” Popularly known as Venky’s with a unique combination of expertise and

experience and supported by strategic collaboration, the VH group today plays a parent to



many of the brands and products and successfully catering to the customers. Pioneering

efforts of the VH Group have been rewarded with several national and international awards.

Suguna poultry

Suguna is one of the market leaders in the poultry industry in India. Suguna is a classic case

of commodity branding. Suguna poultry started its operations in 1984. Headquarters is in

Coimbatore in Tamil Nadu.

Suguna has four egg brands and sells over one million eggs per month. Following are the

brands under suguna.

Suguna pro.

Suguna active.

Suguna Shakti.

Godrej agro vet ltd

Godrej agro vet ltd (GAVL) is a huge agriculture based company. The company is fully

dedicated to improving the overall situation of farmers and invovation in agriculture.

Godrej Agro vet is positioned to significantly reduce India’s crippling dependence on

imported edible oil.

Poultry business, business best known for the Real Good Chicken and yummiez brands, is

now a JV with Tyson foods and has 45% market share in processed poultry. Godrej Agro

Vet has 45 manufacturing facilities across India, a network of 10,000 rural

distribution/dealers and over 1900 employees.

2.7 Policies and Objectives

Quality Policy:

Practice the logo Hatch to Health -- through our stringent quality processes

that spell optimum health to the chicken, and thereby give significant health

benefits to the consumer.



To make our brand Life Line’s Tender Chicken the most recognized and

preferred source of poultry for the retail as well as institutional trade.

To foresee our customers’ needs ten years ahead because it is the consumer’s

needs and tastes that dictate the production process and allow us to grow and

be in the business.

Quality Objectives

To enhance customer satisfaction levels.

To reduce customer complaints.

To minimize delays in all activities.

To increase the competencies of personnel.

To maintain a safe, clean and healthy environment.

They sell the feeds to Kerala and Tamilnadu. Processed chicken mainly goes to Bangalore

and local places on the basis of order received daily.They have started issuing franchisee

regarding poultry farm to farmers i.e. they will provide chicks, feeds and information related

to how to maintain such chicks. After 41 days they will purchase back Chickens, and again

provide new chicks. This is undertaken in Chikmagalure, Hassan and Chitradurga districts.

2.8 ORGANISATION STRUCTURE

Organizational structure performs in the following major functions:

Implement all the statutory requirements related to receipts storage and dispatch of

product.

Impart adequate training to all subordinates enabling them to perform their duties

satisfactorily.

Develop and maintain good relationship with all customers and other connected agency.

It undertakes a wide variety of activities through devices such as departmentalization,

specialization, division of labor of delegation of authority. In Life Line Feeds, each



department is interlinked with other departments has to maintain a good control with other

departments

STRATERGY

It refers to the set of decisions and actions at gaining a sustainable competitive advantage.

OBLIGATIONS:

Towards customers and suppliers:

To provide prompt, courteous and efficient service and also quality products at a fair and

reasonable prices.

Towards suppliers:

To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary

industries.

Towards employees:

Develop their capability and advancement through appropriate training and career planning.

Towards community:

To develop techno-economically viable and environment-friendly products for the

benefit of the people.

Encourage progressive indigenous manufacture of products and materials so as to

substitute imports.

To ensure safety in operations and highest standards of environment protection in its

manufacturing plants and townships by taking suitable and effective measures.

Financial objectives:

To ensure maximum economy in expenditure.



To manage and operate the facilities in an efficient manner so as to generate adequate

internal resources to meet revenue cost and requirements for project investment,

without budgetary support.

To develop long-term corporate plans to provide for adequate growth of the activities

of the corporation.

To endeavor to reduce the cost of production of sponge iron by means of systematic

cost control measures.

SYSTEM

System refers to all the rules, regulation and formal procedure and informal that complement

organizational structure. It includes buying and selling, planning and control system, capital

budgeting system, recruitment, training and development schemes.

In RAYEN there is a separate department to plan and control the buying activities in this

department the organization has to account for how much raw materials the trucks have to

bring. The buying is planned according to demand of the sponge iron in the market.

Recruitment is the process of searching prospective employee and the recruitment of

employees are carried out at the head office, Bellary in the human resources department. In

case of vacancies or in case of appointing from outside, the RAYEN recruit people through

consultancies, employment exchange and sometimes it will be published in news papers.

They conduct interview. The qualified suitable candidates selected to the right job and they

will provide training and development programs and opportunities and The minimum period

of training varies from a week to a month.

System flow process

1. Prepare internal work order

2. Planning team-indent after checking with stores.

3. Purchase team – purchase order on raw material supplies.

4. Goods receipt note at stores.

5. Incoming material inspection – ok, re-work, reject


GM

MD

AGM

DGM

Manager Manager Manager ManagerManager

Clerk/ accounta

nt

SupervisorSupervisor Supervisor Supervisor Supervisor

Labor Labor Labor Labor Labor

Clerk/ accounta

nt

Clerk/ accounta

nt

Clerk/ accounta

nt

Clerk/ accounta

nt

Feed factory

Marketing Boiler farm Processing Breeding and hatchery


6. Reject – send back to supplies for replacement

7. In-process inspection.

8. Assembly

9. Final testing / test certificate.

10. Packing / dispatch

11. Local transport from factory to there outlets.

Organization structure of Life Line Feeds

LlFE LINE FEEDS (INDIA) PVT LTD., FUNCTIONAL CHART


Breeding: produced hatching egg

Hatchery: produces commercial chicks

Feed Mill: produces feed

Boiler farm: produces

commercial boiler

Processing: produces processed chilled

chicken

Retail shops: delivery system to

customers

Customers




2.9 Management Team

Mr. KISHORE KUMAR HEGDE- MD, FOUNDER

Dr.PATTABHIRAMA.S.S-GM (QC)

Mr.MURARI-DGM (FINANCE)

Dr.BHARATH.P-AGM (QC)

Dr.RAMESH.K-AGM (BREEDERS)

Dr.DURGESH MANJESHWAR-DGM (MARKETING)

Dr.GOPAL REDDY.G-GM (MARKETING & SALES)

Mr.ASHOK HEGDE.M.K-AGM (MARKETING, LIVE BIRDS)

2.10 Certificates

The slaughtering facility is a HACCP certified.

The HACCP is an international set of standards that define requirements that outline effective

food safety measures. HACCP compliance helps organizations identify and avoid hazards

that may affect food safety and hygiene settings up different check points throughout the

production process. The life line feeds slaughtering facility has also got the certification of

halal, which identifies products as being permissible to consume according to Islamic laws.

An ISO certified company

Life line feeds is an ISO 9001:2008 certified company.

ISO is a network of national standards institutes of 162 countries with a central secretariat at

Geneva, Switzerland, those co-ordinates the system. ISO 9001:2008 is internally recognized

standard for quality management system. It is a set of standards and guide lines for quality in



the manufacturing and services. It is used to establish quality management system (QMS) in

organization.

2.11 Future plans of the company

The company plans to have its own breeding farm, as the availability of hatching eggs from a

good source is questionable, secondly due the present scenario, the consistent availability of

hatching eggs / chicks will not be possible from the market at a reasonable price throughout

the year. Hence the company plans to have breeder to a tune of 120000 broiler parents.

Future all the activity will be operated under M/s Life Line Feeds (India ) Pvt Ltd., and M/s

Life Line Hatchery.



3.1 HUMAN RESOURCES DEPARTMENT

Human Resource Department Hierarchy

The Human Resource Department will be taking care of the following list of activities for the

sustainable development. Hence forth the following functions need to be assigned to HR

Department.

1. Human Resources Development

2. Training & Development

3. Personnel & Administration

4. Industrial Relations

5. Statutory Compliances

1. Human Resources Development

Manpower Planning

implemented in slaughtering unit

Recruitment

as per the requisition by the GM.

Induction & Orientation Program

induction manual

orientation for employees given

Employee Antecedent Verification

for future


Head HRD

Officer

Associates

33


Employee Transfer / increments / promotions

Ready for discussion with the Management.

Attendance system

standard database is already been introduced

Daily report on absenteeism

for future

Monthly attendance statement

in action

Gate Pass and Permission

separate forms will be given

Late coming and early going

implementing permission slip/letter

Leave Administration

w.e.f. April 09

Incentive / tour / leave

action plans in future

Job Analysis/Job Description / Job specification/Job evaluation

Job description is available.

it will be strengthened further

Employee Records

available

Action plans through maintaining separate employee file.

Employee Hand Book

in process

Performance Appraisal

Coordinating with unit heads for planned goals and objectives.

Career Planning / Succession Planning

for future.

Retention Plan

planned compensation policy, mentoring program, etc



2. Training & Development

Identifying skill gap, competency level

Coordinating with unit heads.

Identifying Annual Training Needs

in process

Organizing external training

discussion with Management

Conducting Internal Training

shall be implemented in new premises

Training Calendar

future course of action

Scheduling & imparting training program


Training Feedback from the participants


Training Program Analysis


3. Personnel & Administration

Salary & Wages Administration

monitoring

Time office administration

in progress

Safety

educating employees periodically

Issue of Uniforms/Shoes to workmen

not assigned by the management

Housekeeping



in process

Suggestion Scheme

planning to introduce suggestion policy

Bonus Policy

planned for future

Gratuity Policy

planned for future

Employee gatherings, get-togethers, Conference, Event management

planned for future

Group Health Insurance

planned for future

Formulation & monitoring the activities of various committees

frame work of works committee and MCM

4. Industrial Relations

Ensuring Compliance to Certified Standing Orders

Coordinating with Mr. Kushalappa

Employee discipline

Continuous HR unit visit

Counseling employees

Need based counseling session (Eg, Absenteeism, Misconduct, etc)

Grievance handling

Mentoring session

Disciplinary Action

The process is in progress

Assisting Management in respect with Labor laws.

5. Statutory Compliance

Submission of statutory returns

Monitoring



HUMAN RESOURCE MANAGEMENT – FUNCTIONS

1. Pre-Recruitment Process:

a. Receipt of requirement of manpower from various department heads.

b. Scrutinize them and take approval from concerned authorities if the post is new.

c. Prepare a recruitment budget and CTC for the employee and take approval.

d. Select the appropriate Recruitment process.

2. Recruitment Process:

a. Prepare Advertisements etc for the recruitment.

b. Scrutinize and shortlist the applications received.

c. Send interview call letters/mails as required.

d. Conduct Interviews through panels.

e. Preparation of offer letters as required.

2. Joining Process:

a. Administrating Joining formalities.

b. Pre Employment Reference checks.

c. Preparation of Appointment Advice and intimating the same to other departments.

d. Preparing and entering new hire paperwork.

e. Coordinating to get Employee ID Cards.

f. Handing over the New hire to the concerned HOD/Manager.

g. Preparation of Job Profiles co ordination with HOD/Managers for new posts.

4. Employee Data Base:

a. Keeping Track of Knowledge Management Software.

b. Maintenance of HRIS.

5. Employee Personal File Maintenance:

a. Opening new file and Closing the Resigned employee’s File.

b. Make sure all Employee files are maintained safely with care.



c. Make sure all personal records are available in the files.

d. Periodic Personal File Auditing.

6. Confirmation Formalities:

a. intimating the concerned HOD/Manager about the due dates for confirmation.

b. Conducting Confirmation Appraisals.

c. Coordinating for Skill Gap Analysis.

d. Coordinating to set Quality Objectives for each job profile.

e. Ensuring updating of the existing Job Profiles.

f. Processing the Confirmation.

7. Compliance:

a. ensuring all the updating of the HR documentation and HR Formats.

b. Learning and enforcing Standard Operating Procedures (SOP).

c. Facing the Internal and External Audits, accountable to enforce the correctional actions.

8. Statutory Compliance:

a. Handling PF and ESI formalities and coordinating with other departments.

b. Handling Apprentice Training, Submitting Periodic Returns to Board.

c. Handling with Labor Enactments.

d. Submitting other returns to the labor Department as per Factories Act, Shops and

establishment Act.

9. Training and Development:

a. Conducting Induction Training for new hires.

b. Training Need Analysis based on Skill Gap Analysis, Appraisal Feedback and suggestions.

c. Coordinating External and Internal Training Programs.

d. Maintaining Training Records.

e. Analysis of Training Feedback.



10. Performance Appraisal:

a. prepared the new Appraisal Form.

b. Educated employees about self-appraisal.

c. Provided inputs to HOD’s for Appraisals.

d. Prepared Appraisal Letters.

11. Employee Relation:

a. having formal and Informal counseling with employees.

b. Prepared Event Calendar of monthly recreation to motivate employees.

c. Handling Corporate Medical Insurance.

d. Processing required letters on employee’s request.

12. Reports on the recruitment:

a. Generating and analyzing Employee Attrition Reports, Training Evaluation, and

Manpower status.

b. Weekly and monthly recruitment reports

c. Report generation of Pre appraisal, Appraisal and Post Appraisals.

d. Salary Details Reports to Accounts Department.

e. Reports as per the HOD’s request.

13. Leaving Formalities:

a. Administering Exit paper work including all Statutory requirements.

b. Conducting Exit Interviews.

c. Preparing Exit Interview Summary.

d. Giving post employment reference for relieved employees.

e. Processing File to Accounts Department for final settlement.

The Qualifications possessed

1) Unit manager possess post graduation and have minimum five years of experience in

administration.



2) Supervisors were graduates and have three to five years of experience.

3) Skilled, semi-skilled employees and contract employees have knowledge and experience

in their respective fields.

4) Back office employees have done P.U.C and graduation. In addition to that they have

proficiency in computer knowledge.

The Companies shared values

Shared values include the core values, which are essential guiding principles. Which

encompass the company’s business goals, how it strives to achieve and the value it will

uphold in determining corporate destiny.

Commitment and the Responsibilities held

Life line has taken continual prevention of pollution, reduction of waste and

consumption of resources in all its operations.

Excellence Culture

The company committed with socially responsible employees is putting all its effort

to make its employees skilled enough to handle any complex job. To make the

employees skillful the company is organizing training programs regularly. The

company is taking measures to create social awareness among its employees.

Dignity and Respect

Each individual is the integral part of the institution and due diligence is core to both.

The human dignity and worth of the individual is acknowledged and maintained at all

times. Nothing shall impose upon his dignity and status of the institution which has its

roots in these articulated core values.

Integrity AND Dependency of the company

This is cherished above all and whatever it says, does and the way it does it will

emphasis its integrity and dependability. Its employees, products and services will



clearly communicate the strength to its suppliers and customers. It will practice

integrity in its real sense in all our personal and business action.

Trusteeship

A strong sense of ownership and commitment towards the organization and the

business as a whole is the basic premise of all actions. It will manage its institution as

a trust, as empowered leaders and do all that needs to be done ethically for the

purpose of this institution for today.



3.2 MARKETING DEPARTMENT

Marketing is a process by which goods and services are delivered to the customers. The word

synonymously used with marketing is selling the product and services to the customers.

Marketing is one of the activities for maximization of profits and wealth. So marketing is an

activity which plays an important role in the organization to achieve its objectives.

The marketing department performs marketing activity by supplying the product to the

customers within the mentioned time and product is transferred to the customers by means of

Road transportation. According to the market value cost involved in raw-materials

manufacturing process, based on this cost will be finalized by this department.

Functions of marketing department

Receiving purchasing order.

Control of all the information.

Preparing a stock report every month.

Keeping the record of all the stocks and samples.

Physical stock checking.

Dead investment to be reduced.

Sales forecasting.

Also does the sales department job.

BIRDS VIEW ON THE LIFE LINE FEEDS (INDIA) PVT LTD., RETAIL

MARKETING OF PROCESSED CHICKEN

With integration of broiler rearing increasing in the poultry industry as efficiency and volume

plays a major factor in the coming days for the better viability of the system. M/s Life Line

Feeds (India) Pvt Ltd., with experience and efficiency in broiler rearing has at present 1.75



lakhs birds / month in integration and has planned to increase steadily to reach 3.00 lakh birds

month at the end of the present financial year (March 2010) averaging to 2.25 lakh birds

month for the year 2010 – 2011 and four lakh birds / month at the end of next financial year

( March 2012 ) averaging to three lakh birds / month for the year 2010 – 2011.

Today the birds of integration is being sold in the wet market to a tune of 90 % and rest in

the company’s retail outlet as branded chicken in the name of Life Line’s Tender chicken

Marketing Department Hierarchy

COMPANY’S INITIATION FOR RETAILING

The poultry industry has seen the hindrance in the retailing from the middlemen and the

traders in the live bird selling concept due to this their has been a loss to both the growers and

also the consumers because the consumers fail to enjoy the price benefits given by the

growers to them. Today the live bird traders’ role in promoting chicken, selling the concept

of hygiene chicken is not seen due to the non professionalism by the traders with respect to

the business. This led to the concept of retailing directly under the name and the brand of the

Life Line feeds.


Office clerkDistribution

manager

Sales co-ordinater

Semi skilled workers

Supervisor

Marketing manager

43


The experience of retailing of processed chicken and consumer education in Chikmagalure

has helped the company’s confidence in expanding out of Chikmagalure for more markets

such as cities like Bangalore, kodagu and Mangalore which had very high potential for

growth.

In future chicken meat is going to be the best alternative to the meat eating community as the

availability of mutton and pork is reducing year by year due to lack of promotional activity

either by Government Agencies or by private entrepreneurs, Hence the cost of mutton or pork

has steadily increased to Rs 180 / kg and Rs 100 / kg respectively. The chicken meat being

readily available in all markets and at affordable price the chicken meat will better place in

the meat market. Foreseeing this, the present concept of processed chicken retailing has been

undertaken.

PROCESSED CHICKEN SELLERS IN KARNATAKA

Today in Karnataka, Processed chicken seller are M/s Godrej Agrovet’s Real Good Chicken,

M/s Venkateshwara Hatcheries Ltd’s, Venky’s Chicken and M/s Sugana Farms Ltd Suggies

Chicken., selling approximately 15000, 5000 , and 3000 birds respectively through food

chains and home deliveries per day. However the share of processed chicken marketing to

live bird marketing is not exceeding 10 % of their broiler production except in the case of

M/s Godrej Agrovet (80 %).

TRADERS BUSINESS

The companies are still struggling to take rapid development in the sales and marketing of

the processed chicken. Recently the cost of chicken rose by 27.5 % to meet the trader’s

commission and laying of VAT on the processed and packaged chicken is 12.5%. This has

made the price of processing unaffordable to 80 % of society (middle class, upper and lower

middle class persons).The other reason is that the traders concentrate more on their own

profits and concentrate less on educating the consumers about the hygiene and the concept of

meat handling is not effectively passed on to the consumers. The above failures and success

of our retail outlet



has made us to think about direct retailing to the consumer to have a first hand access with

the consumer on day to day basis and change accordingly Still the company is better placed

in the minds of the consumers because the company believes in reaching customers with

quality without the help of the traders (as 15% of the companies sells are directly done

without traders in between grower and the consumers).

HEALTH & HYGIENE CONCEPT PROMOTION

The processed chicken seller’s are not able to educate the food chains regarding the meat

handling concepts , hence the chicken sales from the food chains has not been encouraging

for the existing chicken meat processors which is well reflected by their processed chicken

sales.

In this context the company finds comfortable with experience of educating the consumers

with concept of health and hygiene in selling the processed chicken meat. In both the above

concepts we have been able to compete with the existing chicken processor which is clearly

reflected by the sales taken over by us from the competitors hands in several Institutions.

Our Chicken processing and marketing is being under the constant technical consultancy by

Meat Science Professional from the Veterinary University, Bangalore.

Functioning of M/s Life Line Feeds (India) Pvt Ltd.

The Functions of various units of the company is as shown in fig-1 and organizational

structure as in fig-2. The office functioning starts with the

1. Planning

2. Execution

3. Monitoring

4. Follow up

The planning is done by the Core Group involving Managing Director, General Manager,

respective Division head, DGM - Finance and is approved by Charted Accountant. The



execution is done by the Managers under the supervision of the Core Group and is monitored

by the supervisor of the division.

The Monitoring of the execution is done by the accounts department and verified by the

Charted Accountant. The Follow up is again done by the Core Group with inputs from the

finance department and concerned department Managers,

The Governing bodies over the business

1. Income tax

2. Service tax

3. Municipal Corporation

4. Inspector of boiler & Factory

5. Labor

6. Provident Fund

7. Health

8. Agriculture Produce & Marketing

9. Pollution control

10. KEB

11. Ministry of Food Processing.

12. ESI

LAY OUT OF FEED PLANT:

The machinery is for production of animal and poultry feed. The plant produces

1. Cattle feed : High yielding Feed

: Medium yielding Feed

: Low yielding Feed

2. Poultry Feed : Breeder Feed

: Layer Feed

: Broiler Feed



The main ingredient used for manufacture of feed is grains, oil extractions, agricultural by

products, vitamins, minerals and other feed additives

Energy Source : Maize, Jawar, Broken rice, Ragi

Protein Source : Soya extraction, Ground nut extraction, Sunflower Extraction

deoiled rice bran.

Animal protein source: Fish meal, whole fish, fish processing industries waste, etc.,

Mineral source ; Di calcium phosphate, Shell grit, Calcite powder, salt

Vitamin source : Vitamin A, D, E, K & all B complex vitamins Including Vitamin H

Feed additives : Amino acids like Methionine, Lysine,

The ingredients are ground to required sizes from 3 mm to 10 mm to suit the need of the

animal or the bird and mixed in the right proportion to meet the nutritional standards set.



3.3 Production department

A) Production of egg

The company is selling 26.4 million eggs a year. Bird eggs are a common food source. Most

commercially produced chicken eggs intended for human consumption are unfertilized, since

the laying hens are kept without any roosters. Fertile eggs can be purchased and eaten as well,

with little nutritional difference. Fertile eggs will not contain a developed embryo, as

refrigeration prohibits cellular growth.

Chicken eggs are widely used in many types of cooking. Dishes that use eggs range from

both sweet to savory dishes. Eggs may be pickled; hard-boiled and refrigerated; or eaten raw,

though the latter is not recommended for people who may be susceptible to salmonella, such

as the elderly, the infirm or pregnant women. In addition, the protein in raw eggs are only

51% bio-available, whereas a cooked egg is nearer 91% bio-available, meaning the protein of

cooked eggs is nearly twice as absorbable as the protein from raw eggs. A boiled egg can be

distinguished from a raw egg without breaking the shell by spinning it. A hard-boiled egg's

contents are solid due to the denaturation of the protein, allowing it to spin freely, while the

inertia of the liquid contents of a raw egg causes it to stop spinning within approximately

three rotations.

B) Chicken and its Placement: -

The company is producing about 0.6 million birds a year and 1.2 million chicks a year.

Chickens generally live five to eleven years depending on the breed. Male chickens are

known as roosters cocks, or cockerels. Castrated roosters are called capons. Female chickens

are known as hens. Young females are known as pullets.

Domestic chickens are typically fed commercially prepared feed that includes a protein

source as well as grains. Chickens often scratch at the soil to search for insects and seeds hick

boxes into the house with the appropriate number of boxes placed near each hover, do not

stack boxes over three high-being sure to leave ample space for air movement between

stacks.


http://en.wikipedia.org/wiki/Rooster


Before placing chicks under the brooder, check to make sure the brooder is working and has

the correct temperature, that water founts are free of litter, and that feed is available in

sufficient quantities.

Unload the entire Place the chicks under the hovers. As the chicks are being removed from

the boxes, place the empty chick boxes against one side of the house to facilitate easy

removing after all chicks have been placed under the hovers.

IMPORTANT :- starting at time placement, records should be kept current on mortally,

consumption, daily house temperature and vaccination dates as well as dates of reactions.

Brooding:

Brooding of Broilers:

Reduced area for the first 10 to 21 days, this area may be a strip along the side of the houses,

or a section across the house in the center or at one end. Usually from one-third to one-half

of the total area of the house is used for the brooding phase. Good ventilation for partial

house brooding work successfully. Consultation of serviceman or engineer is required prior

to going to partial brooding.

C) Feeders

Feeder lids (or filler flats) are used during the first 7-10 days. Begin placing regular feeders

at 3-4 days, so that all regular feeders will be in place and in use by the 7 th to 10th day. The

most widely used types of feeder are: had fill trough, had fill hanging tubes, mechanical chain

(trough type) and center less auger with pans (tube type)

Feeding

Numerous types of broiler feeding programs are in use today throughout the poultry industry

with the following two programs being the most widely used:



1. The feeding of a starter and finisher ration.

2. The feeding of a starter / grower and a finisher ration.

The length of time the birds will be on one ration or form of ration is usually recommended

by the feed manufacturer (compounder). Generally company should follow his program for

he has worked hard to develop rations that perform specific functions during given times with

the most economical price – performance relationship in the area.

Feed Formulation:

It is difficult, if not impossible, for the company to recommend a formula that meets the

many varied requirements of all poultry areas of the world. Therefore company has internal

nutritional experts having wide knowledge and experience in the field.

The Breeding Farm

The Breeding Farm house 50,000 breeder flocks with 40,000 birds in lay producing 7.5

million hatching eggs a year, under good managerial practices. The farms are located places

to ensure that they cannot catch any infection. The birds are fed with nutrients based on

conventional veterinary requirements at every stage of life.

Further, these graded hatching eggs undergo a fumigation process. to clean up the surface

bacteria before going into cold room, then to the Hatchery. Company Produces 1.2 million

hatching eggs a year, where breeders are kept on a high profile management system of

lighting, feeding and bio security regulations to produce quality fertile hatching eggs.

The Hatchery

At the Hatchery, every week, 1, 25,000 chicks are hatched in hygienic surroundings and

graded for the best survivability at the integration farms. The Hatchery has a capacity to hatch

5 lakh chicks per month. Before the eggs are placed in the incubator, they are rechecked for



surfaced contamination and cracks. For 21 days, the temperature and humidity is monitored

every hour. So that the embryo hatches into a good quality chick. On the 12th day, the eggs

are passed over a bright candling light, which makes the internal contents of the egg visible,

and can determine if the egg is fertile or infertile. Defective eggs, Leaking eggs and reject are

removed by the Candler.

The chicks are graded, vaccinated against viral diseases and kept in trays, which are lined

with paper cuttings for the comfort of the chicks before they are shifted to the broiler Farms

in vehicles meant for chick transportation. M/s LIFE LINE HATCHERIES produces 1.2

million chicks a year under stringent disinfection and sanitation programmes to produce

chicks of good quality.

Special Feed Requirements:

The season of the year also may have an effect on performance with better feed conversion

usually being attained in the summer. Since birds must convert feed into body heat when

temperatures are low, extra feed is required to produce a broiler at a given weight. On the

other hand, the overall gain in weight at any given age is frequently faster in the winter.

The Feed Mill

For good broiler growth, quality feed intake is very important. This is visible in the birds that

eat the most feed between 24 to 40 days, to attain the highest weight at 40 days. At its



own Feed Mill, Life line produces age - defined and quality 50,000 tones of poultry and cattle

feeds a year (4000 tones per month). Continuous research is done to gage the needs of the

market and environment, and the nutrient requirements are changed in response to it. The

sample of each ingredient is checked and analyzed, before it is used for feed manufacturing.

The ingredients are mixed in right proportions with amino acids, vitamins, minerals under the

supervision of the nutritionist, to suit the needs of the broiler. Before the finished feed is

dispatched to the Broiler Farms, the Laboratory confirms that it meets the specifications.

Shift processing unit at Chikmagalure. The experience of retailing in Chikmagalure

prompted us to venture into retailing at Bangalore and has opened 19 retail outlets in

Bangalore. The processing unit is currently slaughtering 360000 birds / month.

M/s LIFE LINE FEEDS (INDIA) PVT LTD. produces poultry and cattle feeds as per the

standards specified procuring raw materials or manufacturing to get optimum returns at the

farm gate under various agro climatic conditions in South India.



team in all the segments of integration. The Company foresees the branding of chicken and

selling of chilled frozen chicken with brands will be the call of the day, as the slaughtering of

the chicken in the city limits is going to be banned in the coming days due to various



pollution problems, public health issues etc., The retailing of the product not only helps in

completion of the integration process but also gains the margin which has been engulfed by

the middleman in the commodity market.



3.4 FINANCE DEPARTMENT

Finance Department:

Finance function in Life Line Feeds (India) Pvt. Ltd is committed to create an infrastructure

that is aligned to customers’ expectations. Finance basically comprises of four functions.

Corporate Planning and provide feedback on business strategies. This includes driving the

budgeting process, providing strategic inputs for decision-making and management reporting

and analysis. The account function includes preparation and maintenance of financial records,

funds management, and expense processing and treasury operations. Compliance ensures that

every action is within the regulatory framework. This includes reviewing compliance

requirements and supporting the ethical framework of Life Line Feeds (India) Pvt. Ltd.

Internal includes risk management and Business continuity plans for the enterprise. In the

finance department, the finance manager is Mr.Vidyadhara Rao.

Functions of Finance Department

Preparation of financial planning

Preparation of budgets.

Bills passing for the suppliers.

Cash as well as bank transactions.

MIS related activities such as generation of MIS and review for corrective actions.

Supporter of other departments.

Preparation of profit and loss account

Preparation of balance sheets

As these activities plays important part in the function with the organization. Planning and

budgeting activities are done once a year and budgets so formed are reviewed quarterly.

Quarterly revisions or estimates are essential to transform the yearly date contained in the

budget to operational data pertaining to the immediate quarter incorporating any factors that



might have escaped during the budget preparation due to over right or due to any other

reason.

Finance Department Hierarchy


Administrative manager

Clerk accountant

Supervisor

First division clerk

Second division clerk

55


3.5 Quality Department

Manufacturers who regularly examine their company’s mission tend to have a sense of who

they are and where they are going. How many feed manufacturers know and regularly

examine the organization’s mission? The immediate response of some manufacturers might

be: “Our mission is to make a profit”. Although making a profit is certainly necessary for

company survival, profit as a sole objective is short sighted.

“To provide customers with efficiently manufactured feeds that are correctly delivered to

their facilities and consistently contain the available nutrients required by animals for body

maintenance, growth or reproduction”. The following “tools” are necessary for feed

manufacturers to satisfy their mission:

1. Materials (feed ingredients, fuels, power, etc.)

2. Machinery (formulation equipment, feed delivery systems, feed storage equipment,

feed milling equipment, etc.)

3. People, and

4. Procedures.

Following are the steps through quality are achieved at Life Line Feeds:

Ingredient quality

Process control

Finished feed quality, and

Control of toxic substances, including pathogenic micro-organisms.

Ingredient quality

Since many of the major feed ingredients are byproducts from other industries, feed

manufacturers often find themselves in an underdog sort of position in respect to ingredients

and ingredient quality.



The following steps outline one approach to communicating commitment to quality at

life line

1. Commitment to quality begins with you.

2. Decide what you want in ingredients and put it in writing.

3. Examine all incoming ingredients thoroughly.

4. Have ingredient samples analyzed by a qualified laboratory.

5. Communicate often with your suppliers about quality.

6. Adjust your formulas to reflect the assays you are receiving.

7. File every deficiency claim possible.

Process Control

The process by which high-quality ingredients are made into high-quality feeds involves

three components within the feed mill: personnel, machinery and procedures. If quality is

lacking in any of these three components, the consistent production of high-quality feeds is

unlikely. However, it is equally important to ensure that personnel, machinery and procedures

are “blended” together toward the goal of efficient production of high-quality feeds. \

1. Machinery

2. Procedure

Quality and process control

Once quality personnel, machines and procedures have been established, control can best be

maintained by applying effort at the “quality pressure points” in the mill. These “pressure

points” are:

1. Ingredient inventories

2. Verification of equipment cleanliness and condition



3. Batch system validation

4. Mixing

5. Pelleting and Pellet Cooling

6. Meters and Scales

7. Truck inspection and cleaning

Finished Feed Quality

In many situations, feeds are used rapidly following manufacture and animals consume the

feeds before any assays can be performed. However, finished-feed assays are necessary and

important because they provide the mill with a “final report card” on how well quality was

controlled.

3.52 Why Quality Control Necessary?

The quality control ensures customer satisfaction. Conduct customer satisfaction surveys to

understand the qualities of the product important to the customer. Also conduct surveys with

those who are not the company's customers. This will also provide insight into why these

businesses use the services of the competitor. Use customer surveys to target those features of

a product or service that need improvement. The quality management program provides a

methodology to use to create the type of product the customer desire.

And also answers following questions

1. Is the assay correct? Ask the lab to recheck the assay and continue to examine the

problem.

2. How was the sample taken? Was the sample representative? You may want to

resample it if the material is still available.

3. Is only one nutrient level out of control or are several? This could be clue as to

whether a certain ingredient was left out of the formula.

4. Was the regular crew operating the mill when the feed was produced?

5. Check inventory records for any discrepancies between the actual and predicted

inventory records.



6. Check the scales and metering devices for correct adjustment.

7. Check ingredient and finished-feed bins at the feed mill for hang-ups or bridging

problems.

8. Recheck the mixing time to be certain it is correct for the ration involved.

9. Check the ingredient assay values to see if they indicate a deficient load was received.

If a deficient load was received, contact you ingredient supplier immediately.



4.0 SWOT ANALYSIS

4.1 Strength and weakness

4.11 Strength

Technically good support staff and marketing network

Modern and most advanced technology and method of production is adopted

It adopts quality management system

There are adequate internal control procedures commensurate with size of company

and nature of its business

Farm produces 4000 chicken per day

Good and dedicated employees for growth of the company

Innovative R&D

Corporate culture

Good infrastructural facilities

Sophisticated information system

There is a strong bond between different levels of management.

The top level management takes the suggestions of lower level management while

making crucial decisions

Good support system of transportation and medical facilities are provided.

4.12 Weakness

When the monsoon is not favorable the profit margin comes down by itself

Hence the price of Raw material comes up

Margin of profit is very thin

Cost cutting being difficult due to competition from local vendors

Stress on the domestic market



Difficulty in entering foreign markets due to high safety standards

Complete computerization has not been possible

Customers are driven by old practices

Not using the latest equipment.

The company finds difficult to export due to the various high standards set by

different countries.

Manpower handling is difficult as the labor turn over is high

4.2 Opportunity and threat

4.21 Opportunity

Bright growth prospectus for processing industry all over India

Growing number in non-vegetarianism.

Increase in people awareness about hygienic and quality meat

Successful building of customer base

Upcoming retail outlets in Karnataka and other states

Ample scope for exports development

Development of brand is very much possible.

There is strong brand loyalty among people who buy companies product.

4.22 Threats

There are equal number of vegetarians who are conservative and still opt for vegetarianism

The possible threat to project is from disease bird’s flu

Growing competition (Suguna chicken, Godrej Agro Vet etc.)

Local threat –Government and political interference in functionality of the business

Volatile nature of business

Low cost chicken in the market



Managing proper infrastructure is difficult.

Due to the government opening for FDI in retail market there is threat of foreign brands

overtaking.

The environmental control bodies keep changing the clauses this is a continuous threat to

the poultry industry.

5.1 Findings



The organization is functioning very systematic.

Thorough inspection is done to ensure the quality of product.

Inter and intra department communications are very effective the respondents said that

margin is on the lower side.

There is a strong culture of total quality is in the company.

There is a very good scope for expansion.

5.2 Suggestions

The organization should invest more on advertisements and also they should

concentrate more on giving offers and discounts to attract middle and lower level

consumers.

The company should have more refrigerated trucks, which will transport the

production to the institutions.

The company should create its own brand image.

It should develop better marketing infrastructure.

The organization should concentrate more on integration.

Computerization should be made for effective management

The chicken processing and marketing is being under the constant technical

consultancy by Meat Science Professional from the Veterinary University Bangalore

The quality department is short of the modern equipment so the quality check takes

more time.



The marketing strategy of developing their own brand is good and it should be given

more publicity.

The organization should have to conduct motivational and attractive benefits to the

employees to stop the labor turnover.

5.3 CONCLUSION

LIFE LINE FEEDS [INDIA] PVT. LTD., is the company which started small with animal

feed distribution in the mid 80’s. Facing lot of crisis due to the fear psychosis among the

consumer due to bird flu news. Despite of problems the company is procuring profit. It can be

viewed in Break-even analysis. It is also clear from the study that it is efficient to manage the

cost of the company.

Selling and Distribution expenses are also in the control of the company. In the year

2009-10 and 2010-11, we can the fall in profit margin, when compared to previous years

2008-09 and 2009-10 simultaneously. It is because the broiler rate in major consuming

centers like Kolkata, Delhi, Mumbai, and Chennai were hiked which indeed affected.

LIFE LINE FEEDS [INDIA] PVT. LTD.

The differentiating factors will be as follows:

o Customized products offered to customers.

o Quality of service and product

o Scarcity of experts and trained pool of manpower should be a cause of concern.

o The overall cost position of the company is found satisfactory.

o The sales revenue position of the company is good.

To conclude, as the company is an enterprise. It can motivate others by the profit margin

which indeed is a tribute to our country. This company gives lot of importance to quality and

encourages its allies to grow and imbibe quality in their business.



ANNEXTURE

LEARNING EXPERIENCE

After going through this internship program lot of exposure to the over all working

environment of the organization and got to know about ‘MAN MANAGEMENT SKILLS’,

how to counter the problem, and how to deal with different cadre of people. Also got a

chance to meet lot of people whose ideas and knowledge motivated to carry on the program.

In fact the main objective of this training was to help intern (myself) to adapt to

different work conditions, be flexible and creative while working in the organization. I have

tried to fulfill the same in my internship report. I am sure this will help me in becoming

better manager for tomorrow.

My external guide TEJAS (Human Resource dept), Life line feed(India) Pvt.

Ltd., under his guidance I got to know about the working culture of the company and

working environment of the top, middle, low level management and also about the quality

maintenance and the information of chicken feeds. Even going through their hectic schedule

the project manager gave ample time to help me in knowing more about the organization.

Accounting statements of



M/S LIFELINE FEEDS [INDIA] PRIVATE LIMITED

M/S LIFELINE FEEDS [INDIA] PRIVATE LIMITED

CHIKMAGALUR – 577101

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 ST MARCH 2010

PARTICULARS RS. CURRENT YEAR

I] INCOME

Sales of feeds

Other Income

Rs.

11,52,73,440.34

2,57,996.87

TOTAL 11,55,31,437.21

II] EXPENDITURE

Cost of Sales

Administrative Expenses

Selling & Distribution Expenses

Auditor Fees & Allowance

Interest & bank Charges

Depreciation Written Off

9,85,17,483.30

44,68,655.44

46,91,922.80

31,900.00

33,35,146.33

9,47,086.30

TOTAL 11,19,92,194.17

III] PROFIT FOR THE YEAR

Add : Balance Brought Forward

35,39,243.04

59,214.88

TOTAL 35,98,457.92

Less : Preliminary exp. Written off

Provision for income tax

Profit transferred to General Reserve

27,720.00

10,00,000.00

25,00,000.00 35,27,720.00

PROFIT CARRIED TO BALANCE SHEET 70,737.92

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 ST MARCH 2011



PARTICULARS Rs. Rs.

I] INCOME

Sales of feeds

Other Income

21,24,93,285.20

35,680.00

TOTAL 21,25,28,965.20

II] EXPENDITURE

Cost of Sales

Administrative Expenses

Selling & Distribution Expenses

Auditor Fees & Allowance

Interest & bank Charges

Depreciation Written Off

18,21,42,601.46

1,27,13,938.82

75,58,129.90

40,000.00

40,90,031.15

20,16,489.27

TOTAL 20,85,61,190.60

III] PROFIT FOR THE YEAR

Add : Balance Brought Forward

39,67,774.60

70,737.92

TOTAL 40,58,361.52

Less : Preliminary exp. Written off

Provision for income tax

Profit transferred to General Reserve

Provision for Deferred Tax

Provision For Fringe Benefit Tax

27,720.00

6,50,000.00

21,00,000.00

9,00,000.00

1,90,000.00 38,67,720.00

PROFIT CARRIED TO BALANCE SHEET 1,90,641.52
