1

A STUDY ON THE WORKING OF KEO FOOD PRODUCTS PVT. LTD.,

A Summer Training Report submitted to the SRM University in partial fulfilment of

the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

D.MATHANKUMAR (Reg. No.RA145201020086)

Under the guidance of

Mr. G.Y. VISHWANATH, BE, MBA, (Ph.D.,) (Faculty Guide)

Mr. R. NAGARAJ (Industry Guide)

SRM Ramapuram B-School

SRM University

Chennai 89

JULY 2015

2

SRM Ramapuram B-School

SRM University, Chennai 89

Certificate

This is to certify that the Summer Training Report entitled A Study

on the Working of Keo Food Products Pvt., Ltd.,, in partial fulfillment of the

requirements for the award of the Degree of Master of Business Administration is a

record of original training undergone by Mr. D.MATHANKUMAR (Reg.No

RA1452001020086) during the year 2014 - 16 of his study in the School of

Management, SRM University, Ramapuram Campus under my supervision and the

report has not formed the basis for the award of any Degree/Fellowship or other similar

title to any candidate of any University.

Place: Chennai 89 Signature of Guide

Date: Mr .G.Y.VISHWANATH, BE, MBA, (Ph.D.,)

SRM Ramapuram B-School

SRM University, Chennai 89.

Countersigned

Head of the Department

Dr. C. Sundar, M.B.A., M.Phil ., Ph.D .,

Professor & Head

Submitted to the Department of Management Studies, SRM UNIVERSITY

(Ramapuram Campus) for the examination held on_______________

INTERNAL EXAMINER EXTERNAL

EXAMINER

3

DECLARATION

I, D.MATHANKUMAR, hereby declare that the Summer Training Report, entitled

entitled A Study on the Working of Keo Food Products Pvt., Ltd.,, submitted to

the SRM University in partial fulfillment of the requirements for the award of the

Degree of Master of Business Administration is a record of original training undergone

by me during the period May - July 2015 under the supervision and guidance of

Mr .G.Y.VISHWANATH, BE, MBA, (Ph.D.,) Assistant Professor (OG) School of

Management, SRM University, Ramapuram Campus and it has not formed the basis

for the award of any Degree/Fellowship or other similar title to any candidate of any

University.

Place: Chennai 89 Signature of the Student

Date:

4

ACKNOWLEDGEMENT

First and foremost, I offer my sincerest gratitude to our Chancellor, SRM

University, for his academic support and the facilities provided to carry out the project

work at the Institute. His wide vision and concern for students have been inspirational.

I wish to express my profound gratitude to my venerable Chairman, SRM

Group of Institutions-Ramapuram & Trichy Campuses, who offered me such a huge

opportunity, incredible Infrastructure and other support which made the project work

quite smooth.

I express my heartfelt thanks to our Dean, Vice Principal (Academic) and

Vice Principal (Admin), Faculty of Engineering and Technology, SRM University,

Ramapuram Campus who provided all facilities for carrying out this project.

I immensely thank to our Head of the Department Dr. C. Sundar, M.B.A., M.Phil .,

Ph.D ., Professor & Head for his cordial support, valuable information and

guidance, which helped me in completing this task through various stages. The

blessing, help and guidance given by him time to time shall carry me a long way in the

journey of life on which I am about to embark.

I take this opportunity to express my profound gratitude and deep regards to my

guide Mr .G.Y.VISHWANATH, BE, MBA, (Ph.D.,) Assistant Professor (OG) for her

exemplary guidance, monitoring and constant encouragement throughout the course of

this project.

I also take this opportunity to express a deep sense of gratitude to

Mr. NAGARAJ.R, Manager, for his cordial support, valuable information and

guidance, which helped me in completing this task through various stages. I owe my

wholehearted thanks and appreciation to the entire staff of the company for their

cooperation and assistance during the course of my project.

I thank God Almighty for showering his perennial blessing on me for giving me

the courage to pursue this project work successfully. I owe a lot to my parents, who

encouraged and helped me at every stage of my personal and academic life, and longed

to see this achievement come true.

D.MATHANKUMAR

(Reg. No.RA1452001020086 )

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CONTENTS

CHAPTER TITLE PAGE NO

I

Introduction

1.1 Introduction

1.2 Objectives of the study

1.3 Importance of the study

1.4 Scope of the study

1.5 Period of the study

2

3

4

4

4

II

Industry and Company Profile

2.1 Industry Profile

2.2 Company Profile

6

20

III Functioning of various

Departments

3.1 Finance Department

3.2 Production Department

3.3 Food Testing Department

3.4 Marketing Department

26

27

35

36

IV

Conclusion

4.1 Findings of the study

4.2 Conclusion

44

45

6

7

CHAPTER - I

8

1. Introduction

Food is one of the basic necessities for sustaining life. In the early days food was

prepared or processed using organic methods. As times changed, the methodology

of food processing / preparation and preserving has undergone drastic changes.

In India, the food varies across different states. Each state has its own importance

for specific sets of food or the processing techniques.

The various types of food processing industries are:-

Primary processing - Involves sorting, cleaning the fruits, vegetables

Secondary processing - Involves in reshaping the food for consumption

Tertiary processing - Involves in adding value to food product for improving the

shelf life.

In tertiary processing, the products involves pickles, jams, ketch ups, processed

milk, candies, flakes, noodles etc .For this study , have selected pickle as the core

product and pickle industry correspondingly. Due to time constraints, the region is

restricted to Madurai district in Tamil Nadu. The company identified for the

research is Keo Food products, in Thirumangalam.

Keo food products is a private limited company ,established in 2004.it is

manufacturing variety of pickle products like

lemon,mango,citron,chilli,tomato,onion,onionchilli,mixture,bitterdry and ginger

garlic paste. The company believes in diversifying its product range, but keeping

the traditional hygienic methods of pickle making and storing intact.

The summer internship is to understand the overview of food product industry,

different functions of the departments, SWOT analysis, business process, financial

position and its market potential.

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1.1 Objective of Study:

i. To understand structure of an organization and its functions

ii. To gain knowledge with the different departments in the Organization and

their functions.

iii. To understand how the business process are carried out in an Organization.

iv. Understand how information is used in Organization for decision making at

various levels.

v. To conduct a SWOT analysis of the organization.

The major objective of the Organization Study is for better understanding each

department in the selected company and correlate each of them with management

streams.

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1.2 Need of the study:-

The study helps to understand the food processing industry in general ; with specific

understanding of selected company in terms of procurement ,marketing techniques,

manpower management, finances and operations, distribution methods under the

identified sector.

1.3 Scope of the study:-

The study focuses on understanding the macro view of the organizational structure

and working of the various departments in it. It also aims at understanding the

information flow within the sub units and how they cumulatively add up to the

organizational goal.

1.4 Period of study:

Summer internship was done for 8 weeks at Keo Food Products , understanding the

organizational functions and different functional department working and co-

existence in the company.

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CHAPTER - II

12

2.1 Industry profile:

India is the worlds second largest producer of food next to China, and has the

potential of being the biggest with the food and agricultural sector. The food

processing industry is one of the largest industries in India-it is ranked fifth in terms

of production, consumption, export and expected growth. The food industry is on a

high as Indians continue to have a feast. Fuelled by what can be termed as a perfect

ingredient for any industry -large disposable incomes - the food sector has been

witnessing a marked change in consumption patterns, especially in terms of food.

Increasing incomes are always accompanied by a change in the food basket. The

proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices

declines as households climb the expenditure classes in urban India while the

opposite happens in the case of milk and milk products, meat, egg and fish, fruits

and beverages.

Accounting for about 32 per cent of the country's total food market, the food

processing industry is one of the largest industries in India and is ranked fifth in

terms of production, consumption, export and expected growth. The total food

production in India is likely to double in the next 10 years with the country's

domestic food market estimated to reach US$ 258 billion by 2015. The food

processing industry forms an important segment of the Indian economy in terms of

contribution to GDP, employment and investment, and is a major driver in the

country's growth in the near future. This industry contributes as much as 9-10 per

cent of GDP in agriculture and manufacturing sector

The Confederation of Indian Industry (CII) has estimated that the foods processing

sectors has the potential of attracting US$ 33 billion of investment in 10 years and

generate employment of 9 million person-days.

The Government has formulated and implemented several Plan Schemes to provide

financial assistance for setting up and modernizing food processing units, creation

of infrastructure, and support for research and development and human resource

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development in addition to other promotional measures to encourage the growth of

the processed food sector.

Food processing is a large sector that covers activities such as agriculture,

horticulture, plantation, animal husbandry and fisheries. It also includes other

industries that use agriculture inputs for manufacturing of edible products. The

Ministry of Food Processing, Government of India indicates the following segments

within the Food Processing industry:

o Dairy, fruits & vegetable processing

o Grain processing

o Meat & poultry

processing

o Fisheries

Though the industry is large in size, it is still at a nascent stage in terms of

development of the country's total agriculture and food produce, only 2 per cent is

processed.

The Indian food industry stood around US$ 39.03 billion in 2013 and is expected to

grow at a rate of 11 per cent to touch US$ 64.31 billion by 2018.

Indian agricultural and processed food exports during April-May 2014 stood at US$

3,813.63 million, according to data released by the Agricultural and Processed Food

Products Export Development Authority (APEDA).

Export of processed food and related Exports CAGR 33.2%

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India has 85,000 bakery units, of which 75,000 operate in the

unorganized sector, garnering a 65 per cent market share. The per capita

consumption of bakery products stands around 1-2kg per annum

.

The Indian dairy industry has grown considerably post the white revolution and

reports suggest that with current growth rate of approximately 3 per cent-4 per cent, it

is thought to grow to 185 million tonne and become a US $ 24 billion organized

industry by 2020 and US$ 140 billion overall including the unorganized sector.

Segmentation of different sectors in food processing industry:

Primary food processing is a major industry with a highly fragmented structure

that includes hundreds of thousands of rice-mills and hullers, flour mills, pulse mills

and oil-seed mills, several thousands of bakeries, traditional food units, and fruits,

vegetable and spice processing units in the unorganized sector.

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DAIRY:

In the dairy sector, most of the processing is done by the unorganized

sector. Though the share of organized sector is less than 15 per cent, it is expected to rise rapidly,

especially in the urban regions. Among the milk products manufactured by the organized sector,

some of the prominent ones are ghee, butter, cheese, ice creams, milk powders, malted milk food,

condensed milk and infant foods.

The market size and growth rates of some of the products in organized dairy and consumer

food segments are shown in the graph below.

Fruits and Vegetables

Fruit and vegetable processing in India is almost equally divided between the organized and

unorganized sectors, with the organized sector holding 48 per cent of the share. While products

like juices and pulp concentrate are largely manufactured by the organized sector, the unorganized

sectors foothold is in the traditional areas of processed items like pickles, sauces and squashes.

By size, pickles form the strongest category.

The government expects the processing in this sector to grow to 10 per cent in 2010 and 25 per

cent of the total produce by 2025. Most of the units engaged in above are currently export

oriented. Domestic consumption of processed fruits & vegetable products is low, indicating a

potential for growth through increased penetration of the domestic market.

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Grains

India produces more than 200 million tonnes of different food grains every year. The major grains

such as rice, wheat, maize, barley, and millets like jowar (great millet), bajra (pearl millet), & ragi

(finger millet) are produced in the country. About 15 per cent of the annual production of wheat is

converted into wheat products. There are 10,000 pulse mills in the country with a milling capacity

of 14 million tonnes, milling about 75 per cent of annual pulse production.

Meat and Poultry

India has a livestock population of 470 million, which includes 205 million cattle and 90 million

buffaloes. Processing of meat products is licensed under Meat Food Products Order, (MFPO),

1973. Total meat production in the country is currently estimated at 5 million tonnes annually.

Only about 1-2 per cent of the total meat is converted into value added products. The rest is

purchased raw and consumed at home. Poultry processing is also at a nascent stage. The country

produces about 450 million broilers and 33 billion eggs annually. Growth rate of egg and broiler

production is 16 per cent and 20 per cent respectively.

Fish Processing

India is the third largest fish producer in the world and is second in inland fish productionIndia is

endowed with rich fishery resources and has vast potential for fishes from both inland and marine

resources. Processing of fish into canned and frozen forms is carried out almost entirely for the

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export market. It is widely felt that Indias substantial fishery resources are under -utilized and

there is tremendous potential to increase the output of this sector. The units in the fish processing

sector are largely small scale proprietary/ partnership firms or fishermen co-operatives. In the past

ten years, the corporate sector has increased its operations in preservation, processing and export

of coastal fish.

Fruits and vegetables

Though no industrial license is required for setting up Fruits & Vegetable Processing industries,

setting-up 100 per cent Export Oriented Units require specific Govt. approvals. Many Fruits &

Vegetables Processing industries are eligible for automatic approval of foreign technology

agreement and up to 51 per cent foreign equity participation including tomatoes, mushrooms &

other frozen vegetables, fruit, nuts, fruit-peel, fruit jellies, marmalades, fruit juices & vegetable

juices etc.

This sector is regulated by the Fruit Products Order, 1955 (FPO), issued under the

Essential Commodities Act.

All processing units are required to obtain a license under this order.

Some items like: pickles & chutneys, tapioca sago and tapioca flour are reserved for

exclusive manufacture in the small scale sector.

Export of fruit & vegetable products is freely allowed.

Consumer Foods

Consumer food industry includes packaged foods, aerated soft drinks, packaged drinking water

and alcoholic beverages.

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HISTORY OF PICKLE

Pickling of plant and animal foods is a relatively old method of food preservation. It is estimated

that the first pickles were produced over 4,000 years ago using cucumbers native to India. The

ancient Egyptians and Greeks both have written about the use of pickles for their nutritive value

and healing power. Pickles were a common food during the time of the Roman Empire and they

soon spread throughout Europe. In America, pickles have always been popular. The first travelers

to America kept pickles in large supply because they were nutritious and did not spoil during the

long journeys. It is interesting to note that Amerigo Vespucci, America's namesake, was also a

pickle salesman. He was the main pickle supplier to many ships. The first large-scale commercial

production of pickles did not take place until 1820, when Nicholas Appert began selling pickles in

jars. Over the years, the pickle production process has become more automated, however the

basic pickling methods have changed very little since the technology was first developed..

While there are many different types of pickles, some characteristics are common to all. In

general, pickled cucumbers are crisp vegetables, which can be described as having a strong, biting flavor caused by the vinegar in which they are stored. Different pickle manufacturers

normally add spices to give their pickles a unique flavor. Dill-flavored pickles are perhaps the

most common of all pickles. There are also sweet pickles, which are packed with added sugar.

These are typically used for making relishes. Kosher pickles were pickles that were approved by

the Jewish Orthodox Congregations of America, but the word kosher is now often used to

describe any garlic flavored pickle.

Pickles are cucumbers preserved in a solution of vinegar, salt, and other flavorings. They are

typically fermented with naturally-occurring bacteria prior to vinegar preservation. While pickling technology has been known since ancient times, pickles are still a popular food, with

over 5 million lb (2.27 million kg) consumed daily.

19

Food Safety and Standard Act, 2006

Till the year 2005, thirteen different laws were applicable on the food and food processing sector.

Multiple laws/ regulations prescribe varied standards regarding food additives, contaminants, food

colours, and preservatives and labeling. In order to rationalize the multiplicity of food laws, a

Group of Ministers (GoM) was set up to suggest legislative and other changes to formulate

integrated food law, to be a single reference point in relation to regulation of food products. Based

on the recommendations of the GoM the ministry of food processing enacted the Food Safety &

Standard Act (FSSA), 2006. Salient features of the act:

FSSA will be aided by several scientific panels and a central advisory committee to lay down

standards for food safety. These standards will include specifications for ingredients,

contaminants, pesticide residue, biological hazards and labels

The law will be enforced through State Commissioners of Food Safety and local level officials

Everyone in the food sector is required to get a licence or a registration which would be issued

by local authorities

Every distributor is required to be able to identify any food article to its manufacturer, and every

seller to its distributor. Anyone in the sector should be able to initiate recall procedures if he finds

that the food sold had violated specified standards

Market Size

The Indian food and grocery market is the worlds sixth largest, with retail contributing 70 per

cent of the sales. It is projected to grow at the rate of 104 per cent, touching US$ 482 billion by

2020. The Indian food processing industry accounts for 32 per cent of the countrys total food

market, 14 per cent of manufacturing GDP, 13 per cent of Indias exports and six per cent of total

industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018.

The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a CAGR

of 20 per cent. It is expected to cross US$ 2.8 billion by 2015.

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Indian food brands are increasingly finding prime shelf space in retail chains abroad. These

include Bikanervala Foods, MTR ready to eat foodstuff and ITCs Kitchens of India.

The online food ordering business in India is in its nascent stage. Share of online food ordering

would be in single digits of the overall food ordering business which in 2014 was estimated to be

around Rs 5,000-6,000 crore (US$ 800.19-960.12 million). We are growing at 20-30 per cent

month-on-month.The poultry sector of India is expected to register double-digit growth in 2015

on the back of stable feed prices and encouraging rural demand.

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Packaged Foods

The industry is de licensed and automatic approval for foreign investment up to 51 per cent of

equity (except for items like malted food and items which are reserved for production in small

scale sector) is granted The setting up of 100 per cent export oriented units requires specific

government approval The packaging laws and regulations affecting food products are mainly

covered under the Standards of Weights and Measures Act, 1976, and the Standards of Weights

and Measures (Packaged Commodities) Rules, 1977 (SWMA) specifying the quantity and

package labeling regulations for all products

The Prevention of Food Adulteration Act, 1954, and the Prevention of Food Adulteration Rules,

1955 (PFA) specify food adulteration/contamination norms and permissible ingredients from

consumer health and safety point of view The Agmark Rules relate to the quality specifications

and needs of certain agricultural products to be eligible for Agmark certification. Accounting for

about 32 per cent of the countrys total food market, the food processing industry is one of the

largest industries in India and is ranked fifth in terms of production, consumption, export and

expected growth. The total food production in India is likely to double in the next 10 years with

the countrys domestic food market estimated to reach US$ 258 billion by 2015.

The role of the Indian government has been instrumental in the growth and development of the

industry. The government through the Ministry of Food Processing Industries (MoFPI) is making

all efforts to encourage investments in the sector. It has approved proposals for joint ventures

(JV), foreign collaboration, industrial licences and 100 per cent export oriented units.

Investments

According to the data provided by the Department of Industrial Policies and Promotion (DIPP),

the food processing sector in India has received around US$ 6,215.46 million worth of foreign

investments during the period April 2000Janaury 2015.

Some of the major investments in this sector in the recent past are:

Foodpanda.in has acquired food ordering portal Just Eat India in an all-stock deal as it plans to

strengthen its presence in India.

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Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as 'Amul', plans to

invest Rs 5,000 crore (US$ 800.18 million) to set up ten new processing plants as well as expand

the current capacity to touch 32 million litres per day (MLPD) capacity by 2020.

Restaurant search service Zomato is in discussions to raise about US$ 100 million in a fresh round

of funding. Zomato is now present in 22 countries and over 500 cities around the globe.

Online restaurant search service Zomato has acquired Urbanspoon, for an undisclosed amount, in

an all-cash deal marking its entry into the US. This is Zomatos sixth acquisition in six months.

ITC Ltd plans to invest Rs 1,000 crore (US$ 160.03 million) for its ambitious foray into dairy and

juice businesses which it plans to roll out in the January-March quarter of 2015.

Papa Johns India Inc. plans to merge with the Pizza Corner brand to become the third-largest

pizza chain in India.

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.Government Initiatives

In order to promote food processing industries, increase level of processing and

exploit the potential of domestic and international market for processed food

products, Vision Document-2015 was prepared by the Ministry, which envisaged

trebling the size of investment in the processed food sector by increasing the level

of processing of perishables from 6 per cent to 20 per cent, value addition from 20

per cent to 35 per cent and share in global food trade from 1.5 per cent to 3 per

cent by 2015. To achieve these targets, an investment of Rs 100,000 crore (US$

16 billion) is required by the year 2015.

Some of the major initiatives taken by the Government of India to improve the

food processing sector in India are as follows:

Ms Harsimrat Kaur Badal, Union Minister for Food Processing Industries,

Government of India has inaugurated the first of its kind Rs 136 crore (US$ 21.76

million) mega international food park at Dabwala Kalan, Punjab.

Ministry of Food Processing Industries has a scheme for human resource

development (HRD) in the food processing sector. The HRD scheme is being

implemented through State Governments under the National Mission on Food

Processing. The scheme has the following four components:

o Creation of infrastructure facilities for degree/diploma courses in food processing

sector

o Entrepreneurship Development Programme (EDP)

o Food Processing Training Centres (FPTC)

o Training at recognised institutions at State/National level

The Food Safety and Standards Authority of India (FSSAI) under the Ministry of

Health and Family Welfare has issued the Food Safety and Standards (Food

Product Standards and Food Additives) Regulations, 2011 and the Food Safety

and Standards (Contaminants, Toxins and Residues) Regulations, 2011 which

prescribe the quality and safety standards, respectively for food products.

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The Ministry of Food Processing Industries has taken some new initiatives to

develop the food processing sector which will also help to enhance the incomes of

farmers and export of agro and processed foods among others. The government

has also approved the setting up of five numbers of Mega Food Parks in the states

of Bihar, Maharashtra, Himachal Pradesh and Chattisgarh.

The Indian Institute of Packaging (IIP) has planned to offer a packaging solution

to the famed Tirupati Laddu to enhance its shelf life. They have also planned to

install automatic vacuum packaging system for the packaging of Laddu with

higher shelf life.

Road Ahead

Further,the adoption of food safety and quality assurance mechanisms such as

Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard

Analysis and Critical Control Points (HACCP), Good Manufacturing Practices

(GMP) and Good Hygienic Practices (GHP) by food processing industry enable

adherence to stringent quality and hygiene norms and thereby protect consumer

health, prepare the industry to face global competition, enhance product

acceptance by overseas buyers and keep the industry technologically abreast of

international best practices.

Pickle etymology

The term pickle is derived from the Dutch word pekel, meaning brine. In the U.S.

and Canada, and sometimes Australia and New Zealand, the word pickle alone

almost always refers to a pickled cucumber except when it is used figuratively. It

may also refer to other types of pickles such as "pickled onion", "pickled

cauliflower", etc. In the UK, pickle, as in a "cheese and pickle sandwich", may

also refer to Ploughman's pickle, a kind of chutney.

25

South India Pickle

South Asia has a large variety of pickles (known as achar in Assamese, Punjabi,

Hindi, Bengali, uppinakaayi in Kannada, lonacha in Marathi,oorukai in

Tamil, ooragaya in Telugu), which are mainly made from varieties of

mango, lemon, lime, tamarind and Indian gooseberry (amla), chilli. Vegetables

such as brinjal, carrots, cauliflower, tomato, bitter gourd, green tamarind, ginger,

garlic, onion, and citron are also occasionally used.[citation needed] These fruits and

vegetables are generally mixed with ingredients like salt, spices, and vegetable

oils and are set to mature in a moistureless medium.

In Pakistan, pickles are known locally as achaar (in Urdu) and come in a variety

of flavours. A popular item is the traditional mixed Hyderabadi pickle, a common

delicacy prepared from an assortment of fruits (most notably mangos) and

vegetables blended with selected spices.

In Sri Lanka, achcharu is traditionally prepared from carrots, onions, and ground

dates that are mixed with mustard powder, ground pepper, crushed ginger, garlic,

and vinegar, and left to sit in a clay pot.

26

Company Profile :

Keo Food Products, over the past four decades. Soon after the company was

established, our Indian Pickles started occupying good position in the markets and

in the minds of the customers. We were one amongst the Pickle manufacturing

and exporting companies to launch Mattai Pickle. This gave us a remarkable

brand identity.

The methodology used in the preparation of quality based Indian Pickles have

been passed from

Generation to generation and the ethic has not deviated. To make sure of the

quality, the raw materials are procured from best markets situated in various part

27

of India. Taste any of our products; you will feel the ancient aesthetic food style

involved with mouth-watering aroma.

LOGO:

The Food Processing Unit is well equipped with latest machineries required for

manufacturing food products like Pickle, Paste and others. Machines may be

involved in the process yet we follow the age-old methodology in the preparation,

thus producing delicious and quality Indian Pickles. In order to preserve and

promote South Indian food culture, Keo Foods over the year have been promoting

its range of quality Pickles and others to the people within the border. And now

we are stepping into the next phase of promoting South Indians food culture with

our flavorsome Indian Pickles to its lovers all over the World by exporting them.

28

Types of pickle manufactured:

Lemon pickle

Mango pickle

Assorted pickle

Citron pickle

Garlic pickle

Onion pickle

Tomato pickle

Chilli pickle

Garlic tomato pickle

Onion chilli pickle

Bitter paste

Ginger garlic paste

29

CHAPTER - III

30

DEPARTMENTS IN KEO FOOD PRODUCTS

S.NO DEPARTMENTS

1. Finance Department

2. Production Department

3. Food Quality Testing Department

4. Sales & Marketing Department

31

DEPARTMENTS:

Finance :

It involves basic bookkeeping to providing information to assisting managers in

making strategic decisions. department is headed by Mr. R.Nagaraj (Director)

Production :

It involves of procurement to finished stage of the product.

Food testing:

The Quality Checked raw materials are taken to production floor for further

processing and testing is done in finished good also.

Marketing :

It involves with sales, marketing and distribution for south part of Tamil nadu.

32

FUNCTIONS OF VARIOUS DEPARTMENTS:

3.1 FINANCE DEPARTMENT:

Bookkeepingprocedures

Keeping records of the purchases and sales made by a business as

well as capital spending.

PreparingFinalAccounts

Profit and loss account and Balance Sheets

Providingmanagementinformation

Managers require ongoing financial information to enable them to make better

decisions.

Managementofwages

The wages section of the finance department will be responsible for calculating

the wages and salaries of employees and organizing the collection of income tax

and national insurance for the Inland Revenue.

RaisingFinance

The finance department will also be responsible for the technical details of how a

business raises finance e.g. through loans, and the repayment of interest on that

finance. In addition it will supervise the payment of dividends to shareholders.

Software tools used:

Tally ERP9

33

3.2 PRODUCTION DEPARTMENT:

RAW MATERIALS:

There are six basic types of ingredients used for pickle making. The main bulk

food is vegetables and fruits. The additional ingredients include acids, flavorings,

colorants, preservatives, and stabilizers that make up the liquid, or liquor, in

which the pickle is sold. Many of the ingredients are only available at certain

times of the year, so steps have to be taken to use fresh materials.

Undoubtedly, the most important ingredient in pickle manufacturing is vegetables

and fruits. Seeds are used to produce vegetables and fruits that are straight, thin

skinned, have a predictable number of warts, and are properly sized. These

characteristics are important for uniform pickle manufacturing. Technically,

pickles can actually be made using all kinds of foods such as onions, peppers,

olives, pears, peach and even fish and meat. These are usually referred to as

pickled foods to indicate the type of processing required to make them.

Acetic acid (vinegar) is the primary ingredient used in pickle manufacturing.

After water, it makes up the bulk of the pickle liquor and contributes significantly

to the flavor of the pickle giving it a sour taste. Additionally, it also has a

preservative effect and is nontoxic. Vinegar is derived from naturally occurring

sugars or starches through a two-step fermentation process. Starch is converted to

sugar, which is then yeast fermented to form alcohol. The alcohol is exposed to an

acetobacteria, which converts it to vinegar. Vinegar can be obtained from many

sources and each one has a slightly different taste. Therefore, depending on its

source, the vinegar can have a significant effect on the taste of the final pickle

product.

Other ingredients, which impact the final taste of the pickles, are added to the

liquor. Sugar is used to provide a sweetness to offset the sour taste of the vinegar.

It also helps to make pickles more plump and firm. Artificial sweeteners like

aspartame and saccharine can be used for a similar effect without increasing the

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calories. Salt is added for flavor and it also has an added preservative effect. Pure

granulated salt is typically used since it is devoid of anti-caking ingredients that

could make the liquor cloudy. While vinegar, sugar, and salt make up the bulk of

all pickle liquors, it is the various spices and herbs that differentiate between

pickle types.

Dill weed is the most common type of aromatic spice and is used to make all

forms of dill pickles. Other aromatic spices include allspice, cassia, cinnamon,

cloves, fennel, fenugreek, and nutmeg. For more potent pickles, hot spices such as

capsicum, black pepper, ginger, and mustard are used. Herbs like basil, marjoram,

mint tarragon, and thyme are also used to give pickles a unique taste. Flavorful

vegetables including onions and garlic are often included in a pickle liquor.

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Typically, the pickle manufacturer has a standard spice mix made for each type of

pickle they manufacture. Some additional ingredients may be added to ensure the

pickles meet standards set by the manufacturer. In general, pickles do not require

any colorants because their natural color is acceptable. However, to create a

standardized product and overcome the effects of processes such as bleaching,

manufacturers often add color. Two common types of colorants

are turmeric caramel and chlorophyll. The caramel provides a slightly brown to

yellow color and chlorophyll gives a green color. To inhibit color changes in

pickles, sulfur dioxide is added. Firming agents such as lime and alum may also

be added. These materials help make pickles crispier without significantly

impacting the flavor. Surfactants such as polysorbate are also used to couple

ingredients in the liquor solution.

THE MANUFACTURING PROCESS

Making cucumber pickles can take up to 42 days depending on the manufacturer's

recipe. Production involves four primary steps including harvesting,

preservation, pasteurization, and final processing. The process is highly

automated once the cucumbers are delivered to the processing plant.

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PRESERVATION

Depending on the manufacturer, conversion of the vegetables and fruits into a

pickle can be done in one of three ways including fermentation, pasteurization,

and refrigeration. The first and oldest method is a process known as fermentation.

In this method, the vegetables and fruits are transferred to large, air tight, fiber-

glass or stainless steel tanks. Some of these containers can hold over 40,000 lb

(18,160 kg) of vegetables and fruits. The tanks are filled with a brine solution,

which is made up of water and 10% salt.

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The manufacturer can take advantage of naturally-occurring bacteria that is

present on the The manufacturer can take or innoculate with a specifically

desired bacteria. In either case, the bacteria are halophyllic, or salt tolerant.

During the storage period of about five weeks, these bacteria breakdown the

sugars present in the vegetable and produce carbon dioxide. To prevent adverse

effects from the carbon dioxide, the tanks are periodically degassed. Pickles made

in this way have a shelf life of many months.

The other two methods of preservation do not require a fermentation step. One

method is by direct pasteurization. In this method, the cucumbers are bottled and

then exposed to very high temperatures for a set amount of time. This has the

effect of killing all of the natural bacteria that may is present. These sterilized

vegetables and fruits can then be further processed into pickles. This method of

production results in pickles that have a shelf life of only a few months. The third

method is by refrigeration and acidification. These pickles depend on the cold

temperature and vinegar solution to prevent spoilage. While they are much faster

to manufacture, they have a much shorter shelf life.

PROCESSING AND PACKAGING

After the pickles have adequately fermented, the salt solution is drained. The

pickles are then immersed in water to remove all of the salt they may have

acquired during the cure. From this point, the pickles are moved along a conveyor

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to a slicing machine which cuts the pickles to the correct size depending on the

type of product desired. They can be cut into slices, chips, or can even be diced.

Attempts are made to maintain as clean an environment as possible for the pickles

as contamination by microbes could result in an undesirable product

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After being cut, the pickles are typically placed in glass jars although cans,

plastic bottles, and pouches have also been used. The packing machines are

designed to deliver the correct amount of vegetable to each jar. The jars are

moved along to a liquid filling machine, which fills them with the liquor. The

pickle liquor consists of vinegar, salt, and other materials mentioned previously.

This liquor is premixed in a large container prior to filling. To ensure an adequate

distribution of spices, these are some-times filled into the jars before the liquor.

From the filling machine, the jars are capped and moved along for pasteurization.

PASTEURIZATION AND SEALING

The problem of spoilage is evident throughout the pickle making process.

vegetables and fruits can spoil during the brining process and even during packing

if they are exposed to air for too long. For this reason the pickles are pasteurized.

In order to pasteurize the pickles, they are typically exposed to high temperatures

for an extended period of time.

Depending on how long the pickles are heated, pasteurization can either kill off

all of the acetic acid-tolerant organisms or inactivate all of the enzymes in the

vegetable. In both cases, pasteurization increases the shelf life of the pickles.

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Most pickles are vacuum packed which means the air is removed from the jar

before it is sealed. This helps maintain the pickle taste and prevents contamination

by microorganisms. In order to vacuum pack the pickles, air in the jar is replaced

with steam just before the cap is sealed. When the steam cools and condenses, it

creates a vacuum, reducing the amount of free oxygen present in the jar. The

vacuum seal is responsible for the familiar pop that is heard when a jar of pickles

is opened.

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The jars are next moved along a convey-or to a labeling machine. Labels are

automatically affixed and a freshness date is stamped on the jar. From here the

jars are moved to automatic packing machines which put them in cardboard

boxes. They are transferred to pallets and shipped out to the local retailers.

3.3 FOOD TESTING:-

Testing the quality of raw materials, finished product and test the life time of the

product.

The main purpose is to assess the quality, sustainability and content.

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Types of Testing carried out:

Salt testing

Moisture testing

Fat

Protein

Quality

3.4 MARKETING:-

Marketing is an activity through which the products and service should reach the

people or customers in an effective manner. Marketing department has overall

responsibility for growing revenue, increasing market share and contribution to

company growth.

Being a traditionally rooted company, the marketing budget is nominal. Its 5% of

the yearly turnover. The company is slowly picking up speed in terms of

promotions and branding activities.

Brand Name:

Kanmark brand was initiated by the founder Mr. R.Selvaraj in 1980, because it

was told by his uncle Pakiaraj.( his inspiration to start pickle business ).In 2004,

Keo Food products was started in the presence of district collector Mr.

RAJENDRAN I.A.S, adding a new feather to the already reigning business.

The name Keo exemplifies being superior, extraordinary, exquisite,

determined to reach goals, uncommon, special. During my internship in the

company and the interactions that I had with Mr. R. Selvaraj, I found all the

qualities not only in him, but the entire organization.

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Sales and Distribution:

The company selects direct selling agents or middlemen through ads in

newspaper. And the training is given by the existing sales staff of the company.

The process is named as Buddy up (The new joinee is taken into the company

as a family member). The areas covered are Tirunelveli, Dindigul, Coimbatore,

Madurai, Tirupur, Theni, Bodi, Kammam, Kummuli, Nagapattinam. There are

total 30 sales agents working with the company. The sales agents are not paid

direct salaries, but they are motivated by means of bonus and weekly discounts

based on their order.

Marketing Channel:

The supply of goods in weekly basis by the manufactures to agent.

The sales agent uses his two wheeler to distribute locally to whole sellers/

retailers.

Manufactu

rer Sales Agents

Wholesaler/

Retailers

End

consumer

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Packaging:

Keo Foods over the year have been promoting its range of quality Pickles and

others to the people within the border in different prices in market. Pickles

available in market like 1Rs, 2Rs,5Rs and 10Rs sachets.

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Bottles:

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Bottels are available in 100gm,200gm,300gm,500gm,1kg and 6kg

Segmentation:

The main vision of the founder is to provide quality product to the end

customer.he has designed Rs1,Rs2,Rs5 and Rs10 for single time users

,train passengers and for immediate consumption purposes.

The other product design is bottles and is priced economically. It is used in

hotels, college hostels, households etc.

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Price List:

QUANTITY PRICE

100gm Rs.18

200gm Rs.30

300gm Rs.40

500gm Rs.55

1kg Rs.80

6 kg Rs. 300

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CHAPTER - IV

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4.1 FINDINGS OF THE STUDY

The first objective of the study understanding the organizational structure.

There are seven directors managing the different department of the organization.

There are more than 50 employees working in internal operation work and 30

executives in sales and marketing.

As per the second objective of the study worked with different departments and

understood their daily working process and time frame.

I found how important and time oriented the working of various department. It

starts from the buying of raw materials, processing the raw materials, testing and

packing the materials to finished goods.

Directors have a weekly meeting monthly meeting and quarterly review meeting.

In the weekly meeting directors interact with account manager, production in

charge and testing expert. Monthly meeting will be conducted where directors

interact with sales managers-quarterly review is for directors and various in

charges will participate.

SWOT analysis :-

- Strength : procurement ,quality of the product

- Weakness : Limited brand awareness in North Tamil Nadu

- Opportunity : Expand to further major markets.

- Threat : Aggressive marketing by competitors.

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4.2 CONCLUSION:-

There should be more brand awareness about the company.

The company should focus on new product development.

Company should invest in digital marketing.

Company should conduct periodic surveys or research to get market feed back .

Company should consider increasing manpower with a long term goal of

expansion

It should tie up with big brand restaurants ,highway hotels and colleges

Company is still focusing on traditional methods and maintaining quality in every

packet.

Directors treat each other and employees as a single family. Hence, attrition ratio

is low.

80% of the sales agents have still business with the company for more than

30years

Market SizeInvestmentsRoad AheadPickle etymologySouth India PickleKeo Food Products, over the past four decades. Soon after the company was established, our Indian Pickles started occupying good position in the markets and in the minds of the customers. We were one amongst the Pickle manufacturing and exporting comp...The methodology used in the preparation of quality based Indian Pickles have been passed fromGeneration to generation and the ethic has not deviated. To make sure of the quality, the raw materials are procured from best markets situated in various part of India. Taste any of our products; you will feel the ancient aesthetic food style involve...LOGO:The Food Processing Unit is well equipped with latest machineries required for manufacturing food products like Pickle, Paste and others. Machines may be involved in the process yet we follow the age-old methodology in the preparation, thus producing ...Types of pickle manufactured: Lemon pickle Mango pickle Assorted pickle Citron pickle Garlic pickle Onion pickle Tomato pickle Chilli pickle Garlic tomato pickle Onion chilli pickle Bitter paste Ginger garlic pasteDEPARTMENTS:Finance :It involves basic bookkeeping to providing information to assisting managers in making strategic decisions. department is headed by Mr. R.Nagaraj (Director)Production :It involves of procurement to finished stage of the product.Food testing:The Quality Checked raw materials are taken to production floor for further processing and testing is done in finished good also.Marketing :It involves with sales, marketing and distribution for south part of Tamil nadu.FUNCTIONS OF VARIOUS DEPARTMENTS:3.1 FINANCE DEPARTMENT:

PRESERVATIONPROCESSING AND PACKAGINGPASTEURIZATION AND SEALING The sales agent uses his two wheeler to distribute locally to whole sellers/ retailers.Packaging:Keo Foods over the year have been promoting its range of quality Pickles and others to the people within the border in different prices in market. Pickles available in market like 1Rs, 2Rs,5Rs and 10Rs sachets.