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AN INTERNSHIP REPORT TITLED ORGANISATION STUDY AT BOMMASANDRA, BANGALORE Submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration Submitted by SIDDARAJU.D (REG No: 11SLCMA140) Under the Guidance of Ms. BINA PANDEY THE OXFORD COLLEGE OF BUSINESS MANAGEMENT 4 th SECTOR, HSR LAYOUT BANGALORE- 560102

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Page 1: organizational studies

AN INTERNSHIP REPORT TITLED

ORGANISATION STUDY

AT

BOMMASANDRA, BANGALORE

Submitted in partial fulfillment of the requirements for the award of the degree

of Master of Business Administration

Submitted by

SIDDARAJU.D

(REG No: 11SLCMA140)

Under the Guidance of

Ms. BINA PANDEY

THE OXFORD COLLEGE OF BUSINESS MANAGEMENT4th SECTOR, HSR LAYOUT

BANGALORE- 560102

2011-2013

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DECLARATION

I SIDDARAJU.D bearing Reg. No: 11SLCMA140 hereby declare that that the report on

“INTERNSHIP TRAINING” conducted at “NILGIRIS MECHANIZED BAKERY.”

BOMMADANDRA, BANGALORE is prepared and submitted by me under the guidance of

Ms. BINA PANDEY.

This internship has not previously formed the basis for the award of any degree, diploma,

fellowship or any other similar title.

Place: BANGALORE SIDDARAJU.D

Date: (Reg. No: 11SLCMA140)

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CERTIFICATE BY GUIDE/PRINCIPAL

I hereby certify that this internship report is an original work of SIDDARAJU.D bearing Reg.

No: 11SLCMA140 has been carried out at NILGIRIS. BOMMASANDRA, BANGALORE

under my guidance. The study does not form a part of any other work submitted to any other

institution/university.

Place: Bangalore Ms. BINA PANDEY

Date: (Signature of Guide)

College Seal Ms. PRATHIBA M R

(Signature of Principal)

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ACKNOWLEDGEMENT

The successful completion of any task would be incomplete without mentioning the people who

made it possible and whose constant guidance and encouragement secured us our success.

I would like to acknowledge with sincere gratitude for the constructive guidance and

encouragement I received from “MBA DEPARTMENT”, “THE OXFORD COLLEGE OF

BUSINESS MANAGEMENT”, affiliated to BANGALORE UNIVERSITY throughout the

completion of Internship Report.

The study being first of its kind, I heart fully thank my guide Ms. BINA PANDEY, The Oxford

College of Business Management, who spared their value time and gave me practical suggestions

and guidance throughout this study.

I am thankful to our principal Ms. PRATHIBA M R for his kind support and help.

My heartfelt thanks to “NILGIRIS.”, for giving me the permission to pursue my internship

work in their esteemed organization.

I am also thankful to MS. ASHA RANI, Associate Manager of Personnel and Administration.

I again extend my gratitude to all my faculty members for their help and for having confidence in

me to bring forth this report.

SIDDARAJU.D

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CONTENTS

SL NO. CHAPTERS

PAGE NO.

1 Industry Profile 1

2 Company Profile

Product Profile Vision, Mission & Core Values Objectives Organization Structure

3

8101112

3 Functional Areas

Personnel Department Production Department Stores Department Accounting Department Material Department Marketing Department Information Technology Department

14-45

14232932353844

4 SWOT Analysis 46

5 Findings 48

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6 Suggestions and Recommendations

Conclusion Bibliography

Annexure

49

5051

CHAPTER – I

INDUSTRY PROFILE

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INTRODUCTION: -

Nilgiris mechanized bakery is an off shoot of Nilgiris - synonymous with quality and sound

business ethics. Even though Nilgiris had incredibly humble beginning its views are unique.

Experience of anticipating customer needs and it always answers them. The enterprising Nilgiris

family pooled in its extensive knowledge, intensive skills and experience has built its empire

Nilgiris is the leading name in southern India to reckon with in the sphere of quality

confectionary. Today Nilgiris is hundred years young, live and kicking and going places.

Decades of total quality in product and service have taken Nilgiris to the summit of total

achievement in gaining customer satisfaction. As yet another feather in the business family’s cap

‘Nilgiris Mechanized Bakery Pvt. Ltd’ was started in the year 1971 at Bangalore.

These mechanized Bakery Products are in greater demand among the old timers and their

generations. A fleet of MCV’s LCV’s is used in this mechanized bakery to distribute their

product. Fresh and ready for breakfast throughout the city. Two Managing Directors Mr. Mani

and Mr.C.Gopal Krishnan head this unit. In production of these bakery products a work force of

500 employees are working in this unit. Machineries connected through conveyors and

manipulators are used in conversion of raw material to finished product on floor-to-floor basis.

Thereby saving of time, wastage through human error and ensuring effective control of

manufacturing process are archived. The cycle time of the entire process of manufacturing

process are archived. The cycle time of the entire process of manufacturing is drastically reduced

by this mechanized unit. The following machineries are utilized in Nilgiris production line.

Baking Industry:

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Wheat is the major cereal crop of the world and is consumed mainly in the form of

bakery products in most parts of the world. In India, wheat is consumed mainly in the form of

Chapatti - an unleavened baked product. In recent years, in India, bakery products have become

popular among different cross sections of population due to increased demand for convent foods.

Among bakery products, bread is the most popular processed ready-to-eat product in the country.

However, the per capita consumption of bread in India is only 1-2 kg/month as compared

to 50-150 kg/month in developed countries. Hence, there is almost an unlimited scope for

expansion for bakery industry in the country. This would help in the effective utilization of the

surplus wheat produced in the country and make available highly nutritious ready-to-eat

convenient product at reasonable cost affordable by common man and also generate

employment.

Status of bakery industry in India

Production of bakery products:

The production of bakery products has increased two folds in the last five years

indicating increasing popularity of the products. The present production of bakery items in India

is estimated to be 31.5 lakhs tones. Of these, the share of bread is 15 lakhs tones and of biscuits

are 12 lakh tones. The remaining 4.5 lakhs tones is contributed by other bakery products.   It is of

interest to note that only about 24.0% of bread and 26.0% of biscuits are manufactured in large

scale bakery units while 76-78% at bakery products are produced in small scale and family scale

units. As high as 48.0% of the total bakery products produced in the country are consumed in

rural areas.

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CHAPTER – II

COMPANY PROFILE

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COMPANY PROFILE:

Company name : NILGIRI’s

Address : Jigani road, bommasandra industrial, Bangalore.

Employees : 500

Chairman : M. CHENNAIAPPAN

M.D : Mr. GOPALAKRISHNAN

Area of operation : Bangalore south, anekal dist.

Area of firm : 1.42 acres

Bankers : Vijaya bank,

Canara bank, Bank of India.

Trade Mark : NILGIRI’S

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COMPANY PROFILE

Background and inception of the company:

“Family ties, discipline and quality consciousness” is the key note of the success story of the

dedicated team of Nilgiris mechanized bakery and its branches.

Nilgiris synonymous the quality, convenience and sound business ethics, has come a long

way since of the seeds of a diary form, were sown by the horticulture, innovative industries

founder, Mr.Muthuswamy Mudaliar in 1905 at Nilgiris Tamilnadu.

To understand the successful legend of the rags to riches, it becomes necessary to trace

the family back to three generations to Mr. Muthuswamy Mudaliar who was a “runner” during

the British times to take letters cheques from down Mettupalayam to the British living in Conoor

and Ooty other than cool climate and exotic fauna, the hills offered little else. The runner was

flooded with requests from time to time.

Mr.Muthuswamy Mudaliar opened a small bunk shop in Ooty. This was in 1905 and the

beginning of a long story in procurement and customer satisfaction principles of business and

service mindedness, he developed the business and enjoyed great goodwill and reputation.

Mr.Mudaliar’s joined the Patel Dairy farm in Nilgiris to get conversant with the industry.

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PRODUCT PROFILE

BAKERY AND BAKERY PRODUCTS

Baking a dry heat cooking process is probably the oldest cooking method used by

humans. Bakery products are usually prepared from flour or meal derived from broken grain.

Bread, a common staple in prehistoric times, continues to provide many nutrients in the human

diet.

The earliest processing of cereal grains probably involved parching or dry roasting of the

collected grains. Flavor, texture and digestibility were later improved by cooking in the whole or

baking a layer of viscous gruel prepared from broken grain on a hard stone is the procedure for

preparation primitive flat bread. More sophisticate versions of flat bread include the Mexican

tortilla, made of processed corn, and the chapatti of India, made of Wheat.

Raw material for manufacturing bread:

1) Maida

2) Sugar

3) Yeast

4) Salt

5) Condensed milk

6) Bread improvers etc.

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Vision, Mission and Core Values

Vision

Simultaneous to providing credible value addition to customers, employees and

shareholders; being recognized by the society as a corporate citizen. In addition achieving

operational excellence along with caring for environmental protection.

Mission

Supplier’s quality policy

Develop healthy interdependency and enhance value addition in the relationship.

Work together to ensure on time suppliers as per requirements at all times.

Quality policy to their employee.

To provide continual learning opportunities to improve compliance and develop new skills.

Core Values

Customer Orientation

Personal Integrity and Commitment

Teamwork and Mutual Support

People Development and Involvement

Striving for Excellence

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Objectives and Goals of the Company

To modernize, upgrade and improve facilities of higher production and productivity.

To achieve better quality in products.

To strengthen the marketing organization to effectively compete in National and

International markets.

To maintain and develop highly motivated human resources to achieve professional

competence and ensure career development of its workers.

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Products of Nigiri’s Mechanized Bakery

They manufacture Bread, Bun, Biscuits, Bread Rolls, Puff, chocolates and Assorted cakes.

Bread : Family pack bread, Milk bread, Fruit bread

Bun : Sweet bun, Cherry bun, Masala bun

Cookies and Biscuits: Coconut cookies, Vanilla cookies, Salt biscuits, Sweet

biscuits, Masala biscuits

Bread rolls : Dinner rolls, Garlic rolls, Hot dog rolls, Cafe garlic rolls, Bread crispy bride rollsChocolate items : Mint chocolate, Nut milk chocolate, Soft praline

Assorted cakes : Coconut finger cut, Fresh cream mango roll, Fruit cake, Egg less cut

cake

Competitors information:

Sweet Chariot, Koshy’s, Modern, VB Ba

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Organization structure

Nilgiri is the Chairman Mr.M.Chennaiappan and Managing Director Mr.M.S. Mani head

a limited company.

Mr..Muthuswamy Mudaliar founded the Nilgiri Dairy Farm in the year 1905, in Nilgiris.

He started with selling Butter, and then added fresh Cream sales Mr.Mudaliar Joined the Patel

Dairy Farm in Nilgiris and a little later the brothers installed the First cream separator in

Southern India.

Mr. Chenniappan son of Mr. Muthuswamy Mudaliar was placed in charge of Bangalore

operations.

Mr. Chenniappan Brother Mr. M.S.Mani the present Managing Director joined the

business in 1950. Mr.M.Chellayan another brother of Chenniappan studied at NDRI, further he

went abroad for further training he is in charge of the dairy operations at Erode and also in

charge of the Supermarkets at Coimbatore and Erode.

The family partnership business was converted into a Private Limited Company in the

year 1971.

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Organization structure

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Chairman

M.Chennaiappan

Mr. Gopalakrishnan

Managing Director

Mr. Mani

Managing Director

Director 1

Mallika

Ramachandran

Director 2

C. Ramachandran

Mr.Lingraj

Region sales

officer

Mr.Narayana

Babu

Sales Officer

ficer

Mr. Vijay Kumar

Sales Officer

Accountant

Mr.Ajit Prasad

Finance

Department

H.R.M

Department

Production

Department

Mr. SomashekarMR. Basavaraj

Personnel Manager

Marketing

Department

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The chairman, Managing Directors and Directors take a leading role in organization

planning. The organization planning includes finance planning, inventory planning production

planning, plant maintenance planning, marketing planning, sales planning, manpower planning

and planning of transportation. Head of departments of all departments and in charges

participated in planning function and takes action relative to implementation.

As a whole corporate planning is the basis for all forwarding plans. Board of Directors

takes active role in corporate planning. Based on the corporate plan sales plan and production

plan is initiated by the unit head and the director of marketing.

The resources required for Nilgiris have to be approved by board of Directors the same

will be allocated and deployed to various departments for further activities. In case of any

shortcomings control actions are taken by the management to overcome the same. Hence

budgeting involves all activities and executives of all departments of unit are involved in

decision-making.

The channel of communication in this regard is bottom-up and top – down. Budgeting

and planning will be planned first for working level in the second stage all the budgets of

working level are consolidated, approval is taken from top management and the same will be

implemented. Workers are provided with authority and freedom in implementing their plan and

performing their activities corrective and preventive action.

Nilgiri is the Chairman Mr.M.Chennaiappan and Managing Director Mr.M.S. Mani head

a limited company.

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Mr..Muthuswamy Mudaliar founded the Nilgiri Dairy Farm in the year 1905, in Nilgiris.

He started with selling Butter, and then added fresh Cream sales Mr.Mudaliar Joined the Patel

Dairy Farm in Nilgiris and a little later the brothers installed the First cream separator in

Southern India.

Mr. Chenniappan son of Mr. Muthuswamy Mudaliar was placed in charge of Bangalore

operations.

Mr. Chenniappan Brother Mr. M.S.Mani the present Managing Director joined the

business in 1950. Mr.M.Chellayan another brother of Chenniappan studied at NDRI, further he

went abroad for further training he is in charge of the dairy operations at Erode and also in

charge of the Supermarkets at Coimbatore and Erode.

The family partnership business was converted into a Private Limited Company in the

year 1971.

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CHAPTER – III

FUNCTIONAL AREAS

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Personnel department

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ORGANIZATION STRUCTURE OF HR DEPARTMENT

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CHAIRMAN AND

M.D.

DIRECTOR

MANAGER

(HRD)

DEPUTY

MANAGER

WELFARE

OFFICER

SUPREVISOR

ASSISTANT

OFFICER

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The chairman, Managing Directors and Directors take a leading role in organization

planning. The organization planning includes finance planning, inventory planning production

planning, plant maintenance planning, marketing planning, sales planning, manpower planning

and planning of transportation. Head of departments of all departments and in charges

participated in planning function and takes action relative to implementation.

As a whole corporate planning is the basis for all forwarding plans. Board of Directors

takes active role in corporate planning. Based on the corporate plan sales plan and production

plan is initiated by the unit head and the director of marketing.

The resources required for Nilgiris have to be approved by board of Directors the same

will be allocated and deployed to various departments for further activities. In case of any

shortcomings control actions are taken by the management to overcome the same. Hence

budgeting involves all activities and executives of all departments of unit are involved in

decision-making.

The channel of communication in this regard is bottom-up and top – down. Budgeting

and planning will be planned first for working level in the second stage all the budgets of

working level are consolidated, approval is taken from top management and the same will be

implemented. Workers are provided with authority and freedom in implementing their plan and

performing their activities corrective and preventive action.

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Staff:

On the basis of manpower requirement Job description and job specification are prepared.

Keeping this as basis the recruitment action will be implemented. Nilgiris chooses the following

sources for requirement.

Advertisement in news papers

Job consultants

Present employees

People with good family background

Descendents of their own family members with appropriate qualification.

Directors handle recruitment process along with their subordinates. Once the candidates

are identified, they are tested for technical and non-technical requirement for the specific job and

qualified candidates are selected. Once after selection concerned departmental in charge will take

up induction process. Operations manager and quality assurance manager is also absorbed in

same procedure as other employees are employed, but a slight changes that can be find is their

tests and interviews.

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Training:

Training needs are culled out from the filled in performance appraisal forms of individual

employees. Training needs will be identified either once or twice during the year. In addition,

specific training needs are identified and imparted to concerned employees. Similarly new

recruits will be provided induction training.

Head of departments in consultation with other in charges identifies the programs, which

could be conducted in-house on the job or by deputing to external Programs/institutions/over

seas. Based on the identifications programs are scheduled Managing Director’s approval is

obtained before nominating to external faculties.

Employees deputed are de briefed to asses for the effectiveness of program and records

are maintained.

Personal assigned to various processes shall be selected after ascertaining the competence

based of appropriate education, experience, knowledge and skills. For this purpose all

recruitment are made strictly in terms of competencies criteria indicated above. This will be

reviewed periodically when new business, new position or new product launched.

Personnel manager in charge will maintain all the records of training conducted

(including internal induction on job etc) concerned in charge have to intimate unit Head details

of the job training provided to employees.

Nilgiris also encourages Postgraduate Management Trainee to take – up projects under

different disciplines. If need arises the company absorbs trainees.

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Nilgiris complies with all the prescribed rules and regulations of Companies Act, 1956

regarding Employee Retirement Benefit, Provident Fund, and Leave Salary ESI (Employee

Service Insurance) etc.

The following activities are taken care by the Personnel and Administrative department

To recruit for the division and promotions to the officers and workmen.

To maintain proper personnel records of the employees of the division.

To provide training as per the employees of the division.

To meet the statutory requirements as per the various labor legislations.

To manage and administer all the welfare aspects to be provided for the employees.

To maintain proper and peaceful industrial relations.

To manage the various legal issues related to labor.

To look after the security and administrative issues.

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THE FUNCTIONS OF HRD AT NILGIRI’S:

The basic function of the department is to achieve result through effort of people employed

by it. This can be achieved smoothly only if co-operation on the part of the employee is

generated for achieving the objective of management. The effort of human being can’t be

directly controlled as a process of machine can be, hence we must create an environment in

which co-operative action is spontaneous.

Current Issues

Pay and other benefits

Promotional policy

Job evaluation

Manpower planning (recruitment-reservation-induction-placement, service record- merit

rating-transfer-promotion-resignation/retirement)

Training in manufacturing and marketing.

Sources of Recruitment

1. Advertising in newspaper

2. Employee reference

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Selection

Selection involves various steps

Aptitude test

Physical Examination

Final selection by Manager(HRD)

Induction/Orientation programs for one/two weeks

Put to actual workstation

Training and Development

Training is given to both new as well as present employees. On the job as well as off the job

training is given. It is done in a regular basis. The Company’s aim is giving training by 2% of

their attendance. The training needs for the HR department at the beginning of the year and a

number of programs assesses the managerial category of employees are organized with both in-

house and external experts to deliver need based training.

Performance Appraisal

The Company has a system of annual appraisals with non-performance being singled out for

guidance and monitoring it ensures that the performance has the fast career growth path. Once in

a year the employees are appraised by the top management.

Transportation

Transportation facility has been provided for the employees in the Company. For the

employees those staying at Hosur and Bangalore are provided with Company bus and cabs. The

managers of different department are provided with Company cars etc. The employees who go

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out of station on a company work are provided with air and train tickets and Company will bear

the expenses.

Attendance System

There are 4 shifts in the Company working for 24 hours. Workers attendance is collected

from the security department and employees’ attendance is collected from machine. The machine

will be having all the data when the employees came into the Company and what time they leave

the Company. First the attendance is taken in the attendance register and then entered in

computer for easy reference.

Medical Facility

The medical facility has been provided for all the employees and workers working in the

company. If any worker or employee gets injured at work or any accident takes place at work

there is a separate medical department for this reason. This department is open round the clock.

There is one doctor and three compounders working in this department. Medical camps are

conducted for social welfare of the people those who are staying near to the factory. There is an

Ambulance for any emergency cases round the clock.

Canteen

Assistant Manager of HR department will take care of the activities of the canteen. For all

employees lunch and tea is provided in the canteen. For night workers milk is provided in the

canteen.

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Legal Matters

Maintenance of legal and discipline matters of employees is taken care by Assistance

Manager of HR department.

Security

Security people will look after the Company’s security matters. They will check all the

vehicles near the entrance gate. Assistant security officer will assist the security officer.

Motivation

Efforts will be made through divisional personnel and administration department for

improving the motivation for good performance in the form of promotion and cash incentives.

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Production department

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Production Department Structure

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GENERAL MANAGER

(PRODUCTION)

SENIOR MANAGER

MANAGER

DEPUTY MANAGER WORKERS MANAGER

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Production is the process by which goods and services are created. The other word synonym

mostly used with production is manufacturing. Production process is also one of the areas for

maximization of profits. So production process plays an important role in the organization to

achieve its objectives.

Production management involves grouping all the factors for production together and

putting them at an optimum use in order to realize the objective of starting a firm that is

production or creation of goods and services. To be more precise, it includes a study of such

activities as procuring and installing machinery, purchasing and storing of raw materials. Issue of

raw materials and converting into finished goods for sales.

Modern production management present certain characteristics, which make it, look totally

different from what it was during the past.

The important characteristic of today’s Production Management is given

below:

Specialization

Mechanization

Use of industrial engineering

Use of computers and data operating equipment

Use of scientific method

Use of operation research

The main functions of Production department are as follows:

To meet the rising demand of the customer

To provide better and improved quality products and service

To gain good will in the market

To maintain the premise i.e. proper utilization of available space

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The Company is concentrating on

Productivity improvement

Quality assurance

Dead line observation

Cost reduction

Good Working Conditions

Secure production volume

PRODUCTION PROCESS

1) Categorization of wheat

2) Selection of proper stream

3) Air classification

4) Use of flour improvers

5) Yeast selection

6) Bread making technologies

7) Packaging

1) Categorization of wheat:

Some of the wheat’s grown in the country have been found to have good bread making

potential. However, such wheat’s are not made available to the mills separately for processing

into Maida as wheat’s are not graded and categorized according to its functional characteristics

and stored separately. Hence the wheat is selected according to the nutritional value and water

absorbing levels.

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2) Selection of proper stream:

In roller flourmill, refined flour (Maida) is obtained by mixing different streams of flour

coming from series of break rolls and reduction rolls. The quality of these streams varies

considerably. The protein and ash contents in the break fractions increase with increase in the

break passages and similar trend is observed in reduction passages also hence, flour with desired

level of protein/gluten or ash content can be obtained by blending the streams suitably.

3) Air classification:

It is possible to classify wheat flour into low protein or high protein fractions by air

classification. The variation in protein content in flour particles of different sizes is taken

advantage of to classify the products with high or low protein content. The flour with particle

size less than 17 normally contains twice the amount of proteins present in the parent flour, while

the fraction ranging in size from 17-40 has half the protein content of the normal flour. The size

separation of flour is done adopting air classification technique after grinding the flour in a pin

mill. Yield and protein content of air classified fractions of flour are given in Table 1. The flours

with different protein contents can be used for different bakery products.

Table Yield and Protein Content of Air Classified Fractions of Flour

FlourParent

flour

Fine

flour 

0-17 u

Medium flour 18-40

u

Coarse

flour 

40 u

Hard

wheat13.4 18.9 10.0 14.7

Soft wheat 7.7 15.7 5.0 9.5

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4) Use of improvers:

The quality of flour for use in bread making can is improved by using bleaching and

maturing agents.,millers are permitted to use benzyl peroxide (max 40 ppm) as a bleaching agent

and ascorbic acid (max 200 ppm) and potassium bromated (max 20 ppm) as maturing agents

under prevention of Food Adulteration Act.

5) Yeast selection:

The gas production values of different types of yeast indicated that gas production with

instant yeast is nearly 87% of the compressed yeast and is 185% of the active dry yeast. The thiol

content in the dough containing instant yeast is far less than that produced by dry yeast or

compressed yeast.

6) Bread making technologies:

The improved wheat and mixture of selected yeast is introduced in to mechanical process

called dough development by rollers and spiral mixers. Then with automated process the

mixture is cut in definite shapes and enters the large ovens and finally the bread is baked and sent

for final process.

7) Packaging:

The baked products are finally packed using the designed polethene and

biodegradable packs and done semi automatically where the products movement is

automated and actual process is done by workers.

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Stores department

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Purchase and Stores Department Structure

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DEPUTY MANAGER (PURCHASE)

9

ASSISTANT MANAGER

PURCHASE/STORES OFFICER

SUPERINTENDENT

ADMINSTRATION ASSISTANT

PEON/HELPERS

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STORES SECTION

Stores department is the core department for any manufacturing unit. It is the responsibility

of stores department to maintain the materials in a good and proper manner and provide them to

the various departments whenever they needed.

The stores department also uses computer systems for maintaining, recovering and issuing of

the materials. It is the duty of the stores department for conducting the inspection of the materials

and sending to the technical department for testing of materials for the good quality of materials.

Then they issue the materials to the production department according to their requirement of

materials.

Functions of Stores Department

Maintaining the balance of procurement and issuing of stock

Receiving of ordered materials

Inspection of the received material

If any defects sending back to the vendor through purchase department

The various systems and techniques used by stores department are:

Just in time

oJust in time is a production strategy that strives to improve a business return on

investment by reducing in-process inventory and associated carrying costs. Just in

time production is also called the Toyota Production System

Kanban

oKanban maintains inventory levels; a single is sent to produce and deliver a new

shipment as material is consumed. These singles are tracked through the

replenishment cycle and bring extraordinary visibility to suppliers and buyers

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ABC analysis

oABC analysis stands for Always Better Control also know as Selective Inventory

Control

A Items: Very tight control and accurate records

B Items: Less tightly controlled and good records

C Items: Simplest controls possible and minimal records

o The ABC analysis provides a mechanism for identifying items that will have a

significant impact on overall inventory cost, while also providing a mechanism for

identifying different categories of stock that will require different management

controls

5’S of House Keeping

1.Sort, segregate and remove unwanted things/materials and dispose them

2.Orderliness right things in the right place

3.Clean

4.Standardize

5.Sustain through discipline

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Finance And accounts

Department

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Finance And Accounting Department Structure

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SENIOR MANAGER

DEPUTY MANAGER (ACCOUNTING)

DEPUTY MANAGER

(AUDITING)

SENIOR ASSISTANT ACCOUNTING OFFICER

JUNIOR ASSISTANT ACCOUNT SUPERDENT

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Accounting System:

The financial statements are prepared on this historical cost convention and in accordance

with generally accepted accounting principles. Revenue is recognized and expenses are

accounted on their accrual with necessary provisions for all known liabilities and losses.

System:

Procedure and process such as information system manufacturing of budgeting and

control process.

Systematic doing day to day work

All the information catching of SAP

Production and Planning improvement

Functions:

Ensuring proper and correct accounting material in/out of the organization

Pay roll system

Creditors bill passing and all payments

Stock transfers and direct sales invoicing

Proper maintenance of strategy records for central excise, sales tax and invoice tax

Co-ordination, different audits-financial audit, cost audit, income tax, excise audit

Product costing

Budgeting and budgetary control activities

Fixed asset accounting

Profitability statement

Maintenance of funds for day to day activities

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The summary of the Annual Report of Nilgiris Mechanized Bakery for the year 20-200 is as

follows.

1. The Company’s current assets of Rs. 9,50,58,650.00

2. The Company’s current liabilities up to Rs. 8,50,24,650.00

3. The Company’s total Fixed Asset is Rs. 12,49,19,505.00

4. The Company’s Registered Profit of Rs. 4,10,00,00.00

Calculating the current ratio of the company

Current Ratio = current assets / current liabilities

= 9,50,58,650 /8,50,24,650

= 1.11

Net Working Capital=Current assets – current liabilities

= 9,50,58,650 – 8,50,24,650

= 1,00,34,000

Net profit of the company is Rs 210 lakhs

After calculating the current ratio and net working capital we can say that the

company is in a satisfactory position.

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36 The Oxford College Of Business Management

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Marketing department

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MARKETING DEPARTMENT STRUCTURE

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GENERAL MANAGER

REGIONAL MANAGER

MANAGER

PROMOTIONAL MANAGER

AREA SALES MANAGER

SALESMAN

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Marketing Strategy

These strategies of cost minimization have opened up the means to introduce the bakery products

with reasonable prices against other manufacturers. Nilgiris have shown that the word of

mouth publicity from its satisfied customers is more effective way of selling

its products to its potential customers.

Quality

In regard to the product quality M/s. Nilgiris is the foremost among the companies adopting

Total quality management. The employees and management are committed to the principle “No

compromise in terms of quality”. The quality policy of the company is “commitment ton

customer delight by total quality management in our quality and service”

Nilgiris product has the following features:

1 High consistent quality baking of all bakery products.

2 Excellent steaming enables fine crust formation and golden line.

3 With relatively longer shelf life.

4 The homely touch in the preparation of the products.

5 Varieties in every product.

6 Specialized state of art pastries, for memorable functions like birthday, marriages and

marriage Anniversary, and for festivals like New Year and Christmas.

Nilgiris Mechanized bakery directly markets its products all over Bangalore and its

marketing team consists of managing director and marketing Executives. Company conducts an

annual exhibition. It is the most popular event every year. ‘Giant Nilgiris Cake’ kept for public

display and for sales during Christmas season. It is “all Bangalore” attraction.

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Thus Nilgiris is making its business more interesting experience of. Nilgiris has shown that

the word of Mouth publicity from its satisfied customers is more effective way of selling its

product to potential customers.

Nilgiris adopts a meticulous approach in identifying vendors for raw materials, which goes

into manufacturing of these products. These raw materials are procured after adapting stringent

quality control measures to ensure that there are in compliance with the set international standers

while manufacturing in process quality system at every stage of manufacturing. It is judiciously

monitored. Customer’s complaints of any nature are addressed promptly as a result the complaint

against the products or service is very low.

Currently company market penetration is restricted by the lack infrastructure such as

transport and sales manpower. To overcome this to appoint marketing manager and other staff

are being recruited.

Marketing survey and observation at Nilgiris works are made so as to probe the ways

and means to optimize the brand placing through an effective sales and distribution system as

required by Niligiris mechanized bakery. The observations at works at various activities and

based on the market survey the problems are identified. On the first thing first basis a program in

oracle is formulated on the Order to payment cycle. We all are aware order to payment cycle is

the heart of the sales information system. This data base information system will keep alive the

marketing managers’ reflexes to the changing trends in the cluttered market place.

Marketers rely on internal reports on orders, sales, price, costs, and inventory levels,

payables and receivable. By analyzing this information they can spot important opportunities and

problems. Sales representatives, dealers, customers, Dispatch the orders to the fir,. The sales

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department prepares the invoices and transmits the copies to various departments. This will

enable to schedule production and order our of stock items etc. this is also to ensure that the

shipped Items are accompanied by shipping and billing documents.

A brand carries itself well in the market place if the promoters have a feel of the brands

strength, weakness, opportunities, threats from the angle of sales and distribution. In view of the

above the researcher has carried out observation at Nilgiris works on the activities related from

order receipt to payment and the market survey at the field for various essential attributes of sales

and distribution.

The duration of the project for interaction with 100 respondents of bakery products

consumer, 50 outlets of Nilgiris products outlets and at computer centre is nearly 10 weeks. The

route map used to reach the set goals are by trifurcation of the research as mentioned above.

Likerts scale is used in the preparation o the questionnaire and to evaluate outcome of

the interview. Respondents to the questionnaire are asked to rate each of the statement on the

basis of the strength of their personal feelings towards the Attribute.

The observation at the unit is with special reference to the activities from order to

payment cycle. The market survey and the Secondary information required is collected from the

sources such as magazines, websites, books, companies’ records and discussion with officers and

men. During the survey on effectiveness on various attributes of the distribution it came to light

that the last ranking attribute is the response of Nilfiris on orders received with short notice due

to the Belated response of the Nilgiris the customers are shifting their brand loyalty to the other

major players whose response is within the reasonable limits. To safeguard the standing of

Nilgiris in the market place the remedial measure is the remedial measure is reduction in cycle

time from order to payment receipt. Hence centralized data base management is found essential.

Accordingly it is decided to evolve an effective sales information system for in house usage.

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MANAGEMENT INFORMATION

SYSTEM

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System:

The operational systems and activities of Nilgiris are fully systematized. Based on the

budget resources funds are allocated to every activities of the organization.

The purchase order is received through various channels from customers such as

E-mail; telephone orders, supermarkets, contracts and fax etc.

The stores of the company are managed under ABC system of inventory control purchase

system.

In purchasing of raw materials required for the planned production is prepared on the

basic of orders received from the customers through various channels. Production department

places the indent to the stores specifying the requirements of the materials in terms of quality and

quantity. Hence this leads to verification of stock level in the raw material stores.

If there is a low stock the order will be placed for the required quantity. Normally in

Nilgiris raw materials inventory will be maintained for requirement for a period of 2 weeks.

While purchasing of raw material its shelf life is also considered.

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CHAPTER – IV

Swot analysis

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Strength:

1. It has a good brand image in the Market.

2. The retailers are well aware of the Nilgiris Brand and its products

3. There is no problem about shelf life as these products have good self life.

4. Taste of the product is good.

5. Infrastructural facilities is very good

6. Experience employee and employer

7. The company is located in good place.

Weakness:

1. Package is not good look. It is large is size.

2. It should not giving any offer to retailers.

3. Company concentrated only few areas

4. Promotion activities is not so good

5. Price of the product so high

6. Concentrated only on few brands

7. Not providing the credit facilities

8. Outlets only in few areas

9. Only it concentrated in India only.

Opportunities

1. They have an opportunity to expand the business

2. They have a chance to open many outlets

3. They introduce many brands

4. They have a chance to concentrate many areas

5. They have an opportunity to produce or manufacture at low cost

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6. They have an opportunity to recycle the wastages

7. They have opportunity to move or to carry the business activities.

Threats

1. It threats it for it competitors

2. It threats to replace the products

3. It threats to expand the business

4. It threats to give offer to the retailers

5. It threats to give credit facilities

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.

CHAPTER – V

Findings

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Findings

During internship training, I have gained a lot of practical knowledge of the theoretical

concepts. Theoretical concepts like administrative, management, technical etc., are easy to

understand but they tend to be complex implementation.

There are specialized departments for the proper functioning of different activities.

Technical department officials look after the proper functioning of machinery to optimize the

production.

Personnel department officials, like personnel manager L.W.O training officer motivate

the male and female workers. Administrative department maintains a record of sales, wage and

salary absenteeism, PF sanction of education bills etc.

The organization is liberal and has been facilitating the welfare of its employees.

I also learnt how the production process takes place starting from stores department, the raw

material passes through the various section or hands to form a good qualified finished product.

The production department various records of daily, weekly and monthly transactions. I also

learnt that how the production units star processing according to the customers orders and

according to customer’s requirements based on the quotations placed by the customers. The daily

work is based on reaching minimum targets by the employees.

A period of six weeks was allotted for obtaining practical knowledge of the theoretical

concepts. theoretical concepts are easy to understand but the practical implementation of

theoretical concepts tends to be complex in nature. Even minor theoretical concepts have a vital

role in implementation it has to be carefully maintained.

The study in this company helped me in implementing the Theoretical concepts in

practical would. Despite competition from the competitors, the company is doing well in its

activities. The company in competing with other companies has been concentrating on

customization as well as standardization of product. It is dealing with wide range of products

which meet the customer needs by their retail outlets.

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CHAPTER – VI

Suggestions and recommendations

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Exide Industries Ltd.

Suggestions and Recommendations

SUGGESTION:

1. Need to maintain the quality of the products as in past days.

2. They production department has to check over the lag and lead times

3. production department has to take over the advanced technology.

4. management has to adopt the new targets.

5. Increase the customer relationship.

6. The company should instruct the distributor to provide credit facility.

7. By increasing the sales. The company can increase the distribution network and it

covers all areas of Bangalore city.

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Conclusion

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Conclusion

The recommendation provided is strictly based on the information gathered by market

surveys. The details or information were collected the customer samples of Bangalore only.

From the above detail we can easily conclude that Nilgiri’s has various effective

promotional activities, which are very different than others. Nilgiri’s should also have the option

of their product to be exhibited in other company’s outlets for making their promotional activity

more effective. This can also be done by investing more on advertising in magazine, newspaper,

radio city, internet, banners etc.

I conclude that the company should concentrate on efficient distribution of Bakery

products and attractive packing instead of its products.

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Bibliography

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Bibliography

1. human Resource and personal Management K. Aswathppa Second Edition

2. “ Behavior in organization” By Jerald Greenberg, Robert A. Baron.

Fifth edition.

3. Reports and Manuals.

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Annexure

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CHAIR

CHAIRMAN AND M.D.

DIRECTOR

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