A

Report on the Study of

MALABAR FRUIT PRODUCTS COMPANY

VAZHAKULAM

Submitted to the

MAHATMA GANDHI UNIVERSITY

In partial fulfilment of the requirements for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Mr. SANTHOSH S.Associate Professor

By

Ms. DIVYA RAJU KURUPPUMADHOMReg.No:42946

SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENTALUVA, COCHIN, KERALA - 683106

SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENTALUVA, COCHIN, KERALA – 683106

CERTIFICATE

This is to certify that the project entitled, A study of Malabar Fruit

Products Company,Vazhakulam, is a bonafide record submitted by

Ms .Divya Raju Kuruppumadhom, Reg. No.42946, in partial fulfilment of

the requirements for the award of the Degree of Master of Business

Administration during the academic years 2012-2014.

Date: Dr. RADHA P. THEVANNOOR DIRECTOR

SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENTALUVA, COCHIN, KERALA – 683106

CERTIFICATE

This is to certify that the project entitled, A study of Malabar Fruit

Products Company, Vazhakulam, has been successfully completed by

Ms. Divya Raju Kuruppumadhom, Reg. No.42946, in partial fulfilment

of the requirements for the award of degree of Master of Business

Administration, under my guidance during the academic years 2012-

2014.

Date: Mr. SANTHOSH S. ASSOCIATE PROFESSOR

COMPANY CERTIFICATE

DECLARATION

I, hereby declare that the Organizational study report on Malabar

Fruit Products Company is my original work. I further declare that

this report is based on the information collected by me and has

not previously been submitted to any other university or academic

body.

Date: Ms. DIVYA RAJU KURUPPUMADHOM Reg.No.42946

ACKNOWLEDGEMENT

At the very outset I am very much grateful to the god almighty for his blessing

showered upon me to complete my project.

I take this opportunity to express my sincere gratitude and indebtedness to our

Director Dr. Radha P. Thevannoor SCMS School of Technology and Management

for her sincere support in all my endeavours.

My heartfelt and profound thanks to Mr. Abraham Thomas, Malabar Fruit Products

Company, for giving proper guidance and information.

I owe my deepest and sincere gratitude to my project guide, Mr. Santhosh S.,

Associate Professor whose involvement and support has been the fundamental cause

for the success of this project.

And last but not least, I extend my heartfelt thanks to my beloved parents, family

members and friends whose keen interests, encouragement and blessings were always

there as a source of strength and without which I would never have reached this point.

DIVYA RAJU KURUPPUMADHOM

vi

EXECUTIVE SUMMARY

This is a report on an organizational study on Malabar Fruit Products, conducted from

8th April to 10th May. It was done with an objective of familiarizing the organizational

functions, understanding the organizational structure and to study the various

departments of the company. It also includes the objective to study the overall

performance of the company. This study helps students to get a practical knowledge

of what they learn. It is useful to a general reader to acquaint himself with the

functioning of a company. Academician can become an expert in business

management through this study.

The brand name of the products of Malabar Fruit Products Company is known as

“FRIUTOMAN’S”. The comapny belongs to the Fruit and Vegetable Processing

industry. It was established by Mr. N.J Thomas and his associate Mr. P.S Luckose in

1957. The company was located in Vazhakulam. It has 5 departments. They are

Production, Sales & Marketing, Finance & Accounts, Personnel & Administration

and Quality Control department.

One of the major strength of the Malabar Fruit Products Company is its extensive

marketing network. The weakness is the absence of Research and Development lab.

Boom in the fruit products industry is the main opportunity and high competition is

one of the major threats in the industry.

The observations at ‘Malabar Fruit Products Company’ reveal the fact that the

company is involved in lots of employee activities. In this company, lot of welfare

activities for the employee is taken. This includes the mental, physical and social

satisfaction. For example the employees are given games and family tour facilities.

Normally the employees are given quarters. For specially skilled staffs the company

provides loan facility to purchase house. It uses the common fruits seen in our place

and helps the farmers. The company takes keen interest in the selection of raw

materials from the market. The company is also purchasing the raw materials from the

cultivators. The basic interest of the company is the quality of products. This quality

is assured by the experienced and qualified staff of the company. It also gives a lot of

vii

importance to sales promotion activities. Malabar Fruit Products is rendering its

various products in high quality and standards both in national and international

levels. Visiting different departments enabled to understand the functioning and the

overall development of the organization.

Time limitation, the busy schedule of the company personnel and the matter of

official secrecy were the main limitations. Time limitation was the prime factor. It

would have been possible to spend more time in different departments and to get a

detailed data if there was sufficient time.

The study was successfully completed within the stipulated time and has satisfactorily

met all its objectives.

viii

TABLE OF CONTENTS

CHAPTER NO.

TITLE PAGE NO

ACKNOWLEDGEMENT vi

EXECUTIVE SUMMARY vii

LIST OF FIGURES ix

LIST OF TABLES X

ONE INTRODUCTION

1.1 Introduction to the study 2

1.2 Scope of the study 2

1.3 Objectives of the study 2

1.4 Methodology 3

1.5 Limitations of the study 3

TWO BUSINESS ENVIRONMENT ANALYSIS

2.1 Analysis of the remote external Environment 5

2.2 Industry Profile 5

2.3 Industry Analysis 11

THREE ORGANIZATIONAL ANALYSIS

3.1 Over view of the organization 13

3.2 Organization Structure 17

3.3 Functional Analysis 18

3.4 Organizational Analysis 39

FOUR OBSERVATION AND CONCLUSION

BIBLIOGRAPHY 43

LIST OF FIGURES

SL NO. FIG. NO TITLE PAGE NO.

1 3.1 Business and departmental

Structure

17

2 3.2 Finance and Accounts

Department

19

3 3.3 Sales and Marketing Department 22

4 3.4 Production Department 32

5 3.5 Production process of pineapple

juice

35

6 3.6 Quality control department 36

x

LIST OF TABLES

SL

NO.

TABLE. NO TITLE PAGE

NO.

1 3.1 Products 15

xi

CHAPTER ONE - INTRODUCTION

1.1. INTRODUCTION TO THE STUDY

Organization is a harmonious adjustment of specialized parts for the accomplishment

of some common purpose or purposes. Organization study helps us to study how to

apply our theoretical knowledge in an organization. This organization study was

conducted at Malabar Fruit Products Company.

The study helped to know the preservation of pineapple, mango etc and got a chance

to see the process of juice. The study lasted for a period of about 33 days.

The company gives more importance to sales promotion. It also give focus to the

welfare of the employees.

Here the study aims to explore the levels of activities in business organization. The

study also searches for getting a clear picture of the organization structure to learn how

the authority and the line of command reaches each level of the management. A part

from this, familiarizing the duties and functions of various departments and also how

they interact with each other are also included in this study.

1.2. SCOPE OF THE STUDY

The study is limited to a single branch, that is Malabar Fruit Products Company. The

company has 4 departments-Finance and Administration, Sales and Marketing,

Production, Quality Control Department. Finance and administration department is in

charge of all financial affairs. Sales and Marketing department is in regular search of

new goals. Production department is mainly interested in finding out new techniques

of production. Quality Control department is vested in the hands of a group of

specialists who are always hard working for the quality control.

1.3. OBJECTIVES OF THE STUDY

The overall objective is to conduct a study on organizational structure of Malabar Fruit

Products Company. The following are the specific objectives:-

To familiarize with the organizational functions.

2

To understand the organizational structure.

To study the various departments and functions of the company.

To get a clear view of day to day functioning of the industrial establishments.

To study the overall performance of the organization.

To determine the strengths & weakness of Malabar Fruit Products and to

identify the opportunities & threats faced by the firm.

1.4. METHODOLOGY

This organizational study was conducted by collecting information from primary and

secondary data sources.

Primary data

Primary data are collected from interviewing departmental heads, staffs and

supervisors for understanding the structure and activities of each department. It

includes visiting operational sites of various departments to obtain a physical feel of

the departments and observe the activities.

Secondary data

Secondary data are collected from company’s website, manuals, reports, advertisement

materials etc.

1.5. LIMITATIONS OF THE STUDY

Time limit was one of the biggest problems. Being a vast project more time is required

to get all information. It was not able to get in touch with all departments because of

time limit. The busy schedule of the company personnel also affected the data

collection to a certain extend. Above all owing to the official secrecy, possibility to

collect the data was very difficult. In spite of all these limitations and difficulties to

collect the data it was possible to collect the available information.

3

CHAPTER TWO – ANALYSIS OF THE BUSINESS ENVIRONMENT

2.1. ANALYSIS OF THE REMOTE EXTERNAL ENVIRONMENT

Political Factors

On political factors, government has increased the pressure on companies to come up

with healthier foods. The company believes that the products that it provides are made

according to quality standards.

Social Factors

Social trends are one of the key factors affecting a business. Consumer buying patterns

are determined by trends. Demand for food products is determined by eating patterns.

Eating habits are always changing. So the company needs to introduce new products

according to consumer demands.

Technological Factors

Food technology is one of the most dynamic technologies in the modern economy.

Food technology involves researching and developing new techniques for making

products diversely. Apart from this, in the company the new technology should be

easily understood and that can be handled by the employees.

2.2. INDUSTRY PROFILE

In developing countries agriculture is the mainstay of the economy. As such, it should

be no surprise that agricultural industries and related activities can account for a

considerable proportion of their output. Of the various types of activities that can be

termed as agriculturally based, fruit and vegetable processing are among the most

important. India is basically an agricultural country gifted with a diversified range of

climate and plant species. In the field of fruits and vegetables India has a top rank.

India is the world’s second largest producer of food next to China and has the potential

of being the biggest with the food and agricultural sector. The total food production in

India is likely to double in the next ten years and there is an opportunity for large

investments in food and food processing technologies, skills and equipment, especially

5

in areas of Canning, Diary and Food Processing, Specialty Processing, Packaging,

Frozen Food/refrigeration and Thermo Processing. Fruit & Vegetables, Fisheries, Milk

Products, Meat & Poultry, Packaged/Convenience Foods, Alcoholic Beverages & Soft

Drinks and Grains are important subsectors of the food processing industry. Health

food and Health food supplements is another rapidly rising segment of this industry

which is gaining vast popularity amongst the health conscious.

The main objective of fruit and vegetable processing is to supply wholesome, safe,

nutritious and acceptable food to customers throughout the year. Fruit and vegetable

processing projects also aim to replace imported products like squash, jams, tomato

sauces, pickles, etc besides earning foreign exchange by exporting finished or semi-

processed products.

The major processed items are fruit pulp, fruit juices, canned fruits and vegetables,

jams, squashes, fruit based ready-to-serve beverages, and dehydrated vegetables. More

recently, products like frozen pulp and vegetables, fruit juice concentrates and

mushroom products are gaining importance. The most promising sub-sectors includes

Soft-drink bottling, Confectionery manufacture, Fishing, Aquaculture, Grain-milling

and Grain-based products, Meat & Poultry processing, Alcoholic beverages, Milk

processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals, Food additives,

Flavours etc.

2.2.1. Global Scenario

The Green Revolution and subsequent efforts through the application of science and

technology for increasing food production in India have brought self-reliance in food.

The impetus given by the Government, State Agricultural Universities, State

Departments of Agriculture and other organizations through the evolution and

introduction of numerous hybrid varieties of cereals, legumes, fruits and vegetables

and Improved management practices have resulted in increased food production.

However, the nation still faces the problem of the use of improper methods for the

storage of food stuffs, leading to great wastage of the food produced. Such loses in the

food front aggravate the existing syndromes of under nutrition and malnutrition.

Fruits and vegetables, which are among the perishable commodities, important

ingredients in the human dietaries. Due to their high nutritive value they make

significant nutritional contribution to human well-being. They are the cheaper and

6

better source, the protective foods. If they can be supplied in fresh or preserved form

throughout the year for human consumption, the national picture will improve greatly.

The perishable fruits and vegetables are available as seasonal surpluses during

certain parts of the year in different regions and are wasted in large quantities due to

absence of facilities and know-how for proper handling, distribution, marketing and

storage. Furthermore, massive amounts of the perishable fruits and vegetables

produced during a particular season result in a glut in the market and become scarce

during other seasons. Neither can they all be neither consumed in fresh condition nor

sold at economically viable prices.

In developing countries agriculture is the mainstay of the economy. As such, it should

be no surprise that agricultural industries and related activities can account for a

considerable proportion of their output. Of the various types of activities that can be

termed as agriculturally based, fruit and vegetable processing are among the most

important. Therefore, fruit and vegetable processing has been engaging the attention of

planners and policy makers as it can contribute to the economic development of rural

population. The utilization of resources both material and human is one of the ways of

improving the economic status of family.

2.2.2. Indian Scenario

Known as the fruit and vegetable basket of the world, India ranks second in fruits and

vegetables production in the world, after China. According to the National

Horticulture Board, during 2009-2010, India produced 71 million metric tones of fruits

and 134 million metric tones of vegetables. The area under cultivation for fruits is

about 6 million hectares while that of vegetables is 8 hectares. Amongst vegetables,

India is the largest producer of ginger and okra and ranks second in potatoes

production (10%), onions, cauliflowers, brinjal, cabbages, etc. Amongst fruits first is

mango (39% ) followed by bananas (28%). During 2010-11, India exported fruits and

vegetables worth Rs.3856 crores which comprised of fruits worth Rs. 2635 crores and

vegetables worth Rs.1221 crores (MoFPI, 2011).

Food processing sector is one of the largest sectors in India in terms of production,

growth, consumption, and export. The turnover of the total food market is

approximately Rs. 250,000 crores (US$ 69.4 billion) out of which value-added food

products comprise Rs.80,000 crores (US$ 22.2 billion)

7

India annually produces 205 million tones of fruits and vegetables and is the second

largest country in farm production in the world. Only 2.2 % of this are processed. In

contrast, countries, like USA (65%), China (23%) and Philippines (78%) are far ahead

of India in reducing the wastage and enhancing the value addition and shelf life of the

farm products. This is an alarming signal for India as large volume of the agricultural

produce is wasted. About 35% of the fruits and vegetables are wasted annually, due to

poor storage facility, amounting to a revenue loss of Rs. 500 billion and 80% of the

vegetables rot due to high water content and lack of processing facility, resulting in

revenue loss of Rs 125 billion. India is very ambitious to increase the processing level

to 20% by 2015! (MOFPI, 2011).

Between 1993 and 2006 the installed capacity of fruits and vegetables processing

industry has increased from 1.1 million tones to 2.1 million tones, a meagre 1 million

tone increase in 13 years.

The fruits and vegetables processing industry is highly decentralized, and a large

number of units are in the cottage, household and small-scale sectors, having small

capacities of up to 250 tones per annum. Since 2000, the food processing industry has

seen large growth in ready-to-serve beverages, fruit juices and pulps, dehydrated and

frozen fruits and vegetable products, pickles, mushrooms and ready-mix vegetables.

These small scale units engaged in these segments of processing are export oriented.

The major destinations for Indian fruits and vegetables are Russia, USA, Bangladesh,

UAE, Malaysia, Sri Lanka, UK, Nepal, Saudi Arabia, Pakistan and Indonesia.

Between 2010-2011 India exported 2072015 MT processed vegetables ( onions,

vegetables, grapes etc) worth Rs. 385562 lacs. Out of this onions only accounted for

1163473 MT worth Rs. 174156 lacs!! (APEDA, 2011, Agricultural and Processed

food products Export Development Authority)

Russia is a major importer of processed fruits and vegetables from India and the

country imported 13477 million tones of dehydrated vegetables and fruits worth 5963

lacs in 2010-2011. The second major importer is USA with 11164 million tones of

dehydrated fruits and vegetables in 2010-2011

8

The consumption of processed fruits and vegetables are low in India compared to the

primary foods because they are available fresh in the market to the consumer. The

demand for processed foods is mostly lies in the urban market due to the lifestyle and

purchasing power of the urban population. Thus, there is a large demand for processed

food in the export market and India can capture this market by restructuring and

strengthening its infrastructure.

India’s food processing sector covers fruits and vegetables, spices, meat and poultry,

milk and milk products, alcoholic beverages, fisheries, plantation, grain processing

and other consumer product groups like confectionery, chocolates and cocoa products,

soya-based products, mineral water, high protein foods etc. Since liberalization in

Aug’91 proposals for projects have been proposed in various segments of the food and

agro-processing industry. Besides this, Govt. has also approved proposals for joint

ventures, foreign collaboration, industrial licenses and 100% export oriented units

envisaging an investment. Out of this, foreign investment is over Rs.10,000 crores.

India’s exports of processed food was Rs.14925 crores in 2010-11, that includes

several other products like Mango Pulp (Rs.814 crores), processed fruits and

vegetables (Rs. 1833 crores)

India’s food sector vision 2015 aims at providing safe and quality food, providing

dynamic food processing industry, enhancing the competitiveness of food processing

industry in domestic and international markets, increasing the infrastructure facilities

to enhance the production of processed food, increasing the level of perishable

agricultural produce from 6 to 20%, increasing the value addition from 20 to 35%,

increasing the share in global trade from 1.5 % to 3% by the year 2015. To achieve

this vision, an estimated investment of Rs. 100,000 crores (1000 x 109) is required .

Private sector is expected to invest about 45,000 crores and equal amount from

financial sector and Rs 10,000 crores (100 x 109) from the Government.

About 80% vegetables and fruits perish due to high water content. Due to lack of such

facilities, food worth 2.5 billion US$ is wasted annually.

Indian food sector uses about 13 % of the electricity (IEA, 2007) amounting to 63 x

106 MWhr (from coal fired thermal power plants). This amounts to emission of 11 x

9

107 kg of CO2. By using conventional fossil fuel, as it is being practiced now, India

can never compete with the world food processing market. For example, 250 gm of

dehydrated onions costs 0.5 US$ in the Indian market today while the price of 1 kg of

raw onion from the producer costs 0.1 US$. India should learn a lesson from a small

country like Guatemala in Central America that uses geothermal for food processing

and captured the European market in dehydrated fruits and vegetables

(Chandrasekharam,2001). This industry requires about 6 billion US$ to strengthen

infrastructure by creating state or art storage and production facilities.

It is not difficult to create such infrastructure facilities to process the agricultural

produce. India has a large geothermal resources in states like Maharashtra, Gujarat,

Himachal Pradesh, Chhattisgarh, J & K, West Bengal, Orissa, Madhya Pradesh and

Andhra Pradesh where the food processing industries are established supported by

conventional energy sources. These states also produces large volumes of fruits and

vegetables. For example, Maharashtra is one of the largest producer of onions. Nearly

20% of onions rot yearly due to lack of cold storage facility or processing facility to

dehydrate the onions to increase its shelf life. The cost of onions in the farm is, as

mentioned above is less than 10 US cents. By utilizing the geothermal energy source,

the cost of dehydrated onions can be brought down by several factors there by making

the product competitive in the international market. On one side the export market will

boom due to lower cost and the other side industry can earn carbon credits since,

carbon free energy source is being utilised to support the industry.

In terms of earnings through CDM, it will be about 88 x 107 € at the current CER of 8

€ per tCO2. Thus, India can very well exploit its geothermal energy sources for food

processing facility there by earning the required capital to build this state of art storage

and processing facilities and become the top trader in the world food processing

sector. The agro products from the farm can directly be transported to the geothermal

sites where dehydration facility can be established. The processed food (fruits and

vegetables) can directly marketed to other countries to earn foreign exchange.

10

2.2.3. Regional Scenario

Fruit and vegetables processing industry place a significant role in Kerala. The state is

capable of producing a wide range and large volume of fruits and vegetables. If

suitably processed, could find a valuable market within the country and abroad.

Transformation in the global food system are causing changes in food production and

marketing in Kerala. There is a growing demand for horticulture produce. Production

and Marketing arrangements are responding to changing demand driven by

urbanization and diet change.

The fruit and vegetable processing industry made its head appear in the state only in

1947, when the first processing unit, “Canning industries Cochin Ltd.” was established

at Thrissur. The main work done in that unit was processing of pineapple. The next

unit started was “Dartco Canning Ltd.” Thrissur in 1953. From 1955 onwards many

units started at centers like Punaloor, Vazhakulam, Kottayam, Kozhikode and Kannur.

In 1957 Malabar Fruit Products Company was established. The attraction of Gulf

markets paved the way for starting more units in1980. More over the increased

demand for processed fruit and vegetables in the state helped the industry to expand.

Pineapple and mango are the major raw materials for processing industry.

2.3. INDUSTRY ANALYSIS

2.3.1. Industry Key Players

Grandmas Food products

Grandmas Food Products manufactures pickles, jams, rice products, spices and canned

foods from its production unit located in Kerala, India. The company comes under the

banner of the famous Grandmas Exports.

Rasna International

Rasna International is one of the leading companies in the manufacturing, marketing,

and export of instant drink powders, soft drink concentrates and ethnic food products

11

in India. Rasna International holds a share of around 82% in the market of in- house

soft drink consumption and in the market of soft drink concentrate it holds a market

share of around 93%. This shows that the company is a big player in the soft drinks

market in India.

Nutrine Confectionery Com.Ltd

Nutrine Confectionery Company Limited was founded in 1952 and it is a part of the

Nutrine Group. Nutrine Confectionery Company Limited was founded by Shri

B.Venkatarama Reddy. The company is involved in the business of producing and

exporting a wide range of toffees and confectionery. Since 1980, the company is the

single biggest producer of toffees and confectionery in India.

Ruchi Soya Industries

Ruchi Soya Industries is a part of the Ruchi Group of Industries. It was founded by

late Shri. Mahadeo Shahra. Ruchi Soya Industries is one of the leading producers of

vanaspati, soya foods, edible oils and bakery fats in India. The company is also the

biggest exporter of lecithin and soya meal from India.

2.3.2. Competitor Analysis

The main competitor of Fruitoman’s is Kissan. The product range of Kissan includes

pineapple jam, mixed fruit jam, mango jam, tomato sauce, chilli sauce, pineapple

squash, mango squash, grape squash etc.

12

CHAPTER THREE –

ORGANIZATIONAL ANALYSIS

3.1. OVERVIEW OF THE ORGANIZATION

3.1.1. Background and history

Fruitoman’s is the best-known brand among all the processed fruit products available

in India. Fruitoman’s started off way back in the late forties in a small town called

Bharanaganam. It was a rather small unit which produced pineapple squash, and

pineapple syrup

Late Mr. N.J. Thomas, Ettuparayil is the man behind this company. He was born in

Kannadi village of Alapuzha district. Because of his hard work and effort the

organization began to grow. Mr. NJ Thomas-who is internationally known as the man

who wrote the Fruitoman’s success story-and his associate Mr.PS Luckose opted for

pineapple for definite ecological and nutritive reasons. They were guided then by the

fruit- products technologist Mr. Suriaprakash Rao. NJ Thomas was for a significantly

long time the member of the Central Advisory Committee appointed by the

government of India to look into the affairs relating to the processed and canned fruit

and vegetables. In 1973, the government of India send him to Europe. He was to report

back about the market trends and export potential for processed and canned fruits and

vegetables.

In fact, intrinsic to every Fruitomans product are certain scientific reasons for its

production. Pineapple for example, is well-known for its medicinal and nutrient

qualities. According to Medicinal Secrets of Food juice of the fresh ripe pineapple is

cooling and nutritive, since it contains a very powerful digestive enzyme known as

bromelin, pineapple juices is used with great benefit in the treatment of indigestion

and hyper-irritability of the stomach. Pineapple is rich in fibres, and as such acts as a

natural medicine for constipation. Pineapple is equally rich in vitamin C, carotene and

natural potassium. Mango, on the other hand, rich in vitamin A. Fruitoman’s products

are perfect from the health point of view. Fruitoman’s products are generally free of

synthetic additives. There is, for example, absolutely no synthetic colour in

Fruitoman’s pineapple jam. Colour normally heightens the appeal of processed food

and fruit products, but colour has no nutritional or preservative functions.

Back to Fruitoman’s in 1975, Fruitoman’s set up a canning unit at Vazhakulam in the

suburban cochin. Even today Vazhakulam continues to be south India’s sourcing

13

centre for the finest pineapple available in India. All Fruitoman’s factories are

equipped with the state-of-the-art hardware, and they are manned by scientists and

technologists trained and experienced in maintaining the highest levels of quality,

cleanliness and hygiene. One thing remarkable about Fruitoman’s is that they are

committed to research and development and to the strictest controls in quality and

hygiene. This is exemplified by their research lab at Vazhakkulam.

Other new Fruitoman’s units were soon coming up and brand new fruitomans were

rolling out from these new state-of-the-art fruit processing units and Fruitoman’s was

on its way to becoming a household name in the country. No wonder, India’s most

respected business journal capital market describes Fruitoman’s as the leader among

all the brands. Today, Fruitoman’s products are synonymous with quality and absolutr

value-for-money. The brand name of the products of Malabar Fruit Products Company

is known as “FRIUTOMAN’S”. The company is ISO certified.

3.1.2. Company Vision, Mission and Values

Vision

Our vision is to take our products to global standards in quality and value by

conceiving higher measures in product manufacturing.

Mission

Our mission is to take up hi-tech and innovative applications in our production process

through diligent research and development; thus keeping up the worldwide

acclamation of our products.

Objectives

The main objectives of the company are as follows:

To conduct more research activities in the field of food products.

To continuously grow in business and become a significant player in Indian

market.

To make an extra effort to reach out beyond the best on quality in every

product and service.

14

3.1.3. Products and Markets

Table 3.1 Products

All season

canned

fruits

Fruit

Juices

Fruit

Pulp

Crushes

and

Syrups

Pickles Sauces Other

Products

Pineapple

Slices

Pineapple

Juice

Pineapple

Pulp

Pineapple

Crush

Cut

Mango

Pickle

Tomato

Sauce

Baked

Beans

Pineapple

Titbits

Mango

Juice

Mango

Pulp

Pineapple

Syrup

Garlic

Pickle

Chilly

Sauce

Carrot in

Brine

Mango

Slices

Orange

Juice

Grape

Pulp

Lime

Pickle

Cauli

Flower

Fruit

Cocktail

Tomato

Juice

Tomato

Puree

Tender

Mango

Pickle

Green

peas in

Brine

Potato in

Brine

Sweet

Corn

3.1.4. Awards, Recognitions and Certifications

From the beginning itself the company is been recognized for the quality and variety

of taste it offers. It has got the following awards

Special awards from the government of Kerala for the export of pineapple

products

Gold Medal and Certificate of excellence for the manufacture of the best

quality fruit products

15

National Award for quality products

ISO certification for all departments

3.1.5. Business performances

The quality of products of the company is very high and strong. The area sales

managers are also providing whole hearted co-operation to get maximum sales. On the

other hand the customers are also very much satisfied with the products and

comparatively the price. Hence each year the business performance of Malabar Fruit

Products is getting better. At present the company has an annual turnover of Rs.6.5cr.

16

3.2. ORGANISATION STRUCTURE

3.2.1. Business and Departmental structure

Fig 3.1 Business and Departmental structure

Malabar Fruit Products is a very fast growing company, is having a vast organizational

structure. Each department is headed with well educated and experienced personnel.

At the top the Managing Director is responsible to lead Production, Sales &

Marketing, Quality Control, Finance & Accounts and Personnel & Administration

Department. Each of the above department is headed with managers and they are

supported by Assistant managers. In the same way Assistant managers are supported

17

Managing Director

Production Manager

Sales & Marketing Manager

Quality Control Manager

Finance & Accounts Manager

Personnel & Administration

Manager

Asst. Sales & Marketing Manager

Area Manager

Sales Executives

Clerical Staff

Production

Workers

UME

Electrician

Quality Control Manager

Quality Control Officer

Quality Control

Assistant

Asst. Finance & Accounts Manager

Clerical Staff

Peon

Asst. Personal & Administration Manager

Accountant

Clerk

Peon

by different trained personnel. In short the last sectional staffs are answerable to the

above departments. In this way the top most managing director will get all the

information in a very short period of time.

3.3. FUNCTIONAL ANALYSIS

3.3.1. Finance & Accounts Department

Financing is an important function of any business undertaking. Finance is defined as

the provision of money at the provision of money at the time when it is required. It

deals with the procurement of funds at the right time and their effective utilization in

business. The activities essential to successful administration of finance in any

organization comprise financial planning, raising the needed funds, judicial use of

funds, financial analysis and control. These activities become so complex in modern

business that a separate department known as finance department is set up in most of

the big enterprise.

Every enterprise, whether big, medium or small, needs finance to carry on its

operations and to achieve its targets. In fact, finance is so indispensable today that it is

rightly said to be the life blood of an enterprise without adequate finance, no enterprise

can possibly accomplish its objectives. Business finance can be broadly defined as the

activity concerned with the planning, raising, controlling and administering the funds

in the business.

An important requirement for the success of a modern business organization is the

provision of sufficient amount of capital. No business undertaking can proper unless it

has got sufficient capital at its disposal to install up to date machines and equipment,

buy plants and buildings, meet day-to-day expenses, and pay wages and salaries.

Arrange for the transport of raw materials and finished products, and so on. The

importance of finance has increased these days because of the adoption of capital

intensive technique, increase in the sales of operations and difficulties in raising

finance.

Finance function is the most important of all business functions. It is not possible to

substitute or eliminate this function because the business will close down in the

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absence of finance. The need for money is continuous. It starts with the setting up of

an enterprise and remains at all times. The development and expansion of business

rather needs more commitment for funds. The funds will have to be raised from

various sources. The sources will be selected in relation to the implications attached

with them. The receiving of money is not enough, its utilization is more important.

The money once received will have to be returned also. If its use is proper its return

will be easy otherwise it will create difficulties for repayment. The management

should have an idea of using the money profitability. It may be easy to raise funds but

it may be difficult to repay them. The inflows and outflow of funds should be properly

matched.

Finance manager is the head of finance department in Malabar Fruit Products

Company. Assistant finance manager helps the finance manager in carrying put

activities of the department. This department is functioning in the head office at

Ernakulam.

Fig 3.2 Finance and Accounts Department

19

Finance & Accounts Manager

Assistant Finance & Accounts

Manager

Clerical Staff

Peon

Related activities

Maintenance activities:-

Finance & Accounts department maintains all the accounts in Malabar Fruit Products

Company. The organization maintained detailed account of its assets and liabilities,

income and expenditures. At the end of financial year, accounts are finalized and

accounts are prepared. They are properly audited.

Transaction

Main transactions in Malabar fruit products company is sales, purchase of raw

materials and other materials payment, salaries and other wages and other payments.

Budget

In Malabar Fruit Products Company, budgeting is based on the sales turnover and back

down on machines and normal loss. Budget is a financial quantitative statement

prepared to estimate the cost of operations.

Financial Planning

Financial Manager has to plan the funds needed in future. How these funds will be

acquired and applied is an important function of the finance manager. The financial

decisions are crucial for the survival of the concern. In Malabar Fruit Products

Company, finance manger prepares the financial plan of the company. Assistant

financial manager helps him in this process.

Acquisition of funds:-

Commercial banks supply funds to Malabar Fruit Products Company

Books Maintained In Finance and Accounts Department

Journal

Ledger

Sales Register

Purchase Registration

Cash Book

Balance Sheet

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Bills Receivable Book

Bills Payable Book

Bank Book

P & L Accounts

Future Plan

Control the finance in order to achieve the organization goal.

3.3.2. Sales and Marketing Department

Marketing is a basic function of all business firms. According to Peter Drucker,” It is

in marketing that satisfy individual and social values and needs, be it through

producing goods, supplying services, fostering innovation for creating satisfaction.”

Marketing is an important activity these days, particularly in the competitive

economies. Marketing generates revenue for the business enterprises. No firm can

survive in the long run unless it is able to market its products. In fact, marketing has

become the nerve-centre of all human activities.

Marketing is a human activity directed at satisfying needs and wants, through an

exchange process. According to professor Philip Kotler “Marketing is a social and

managerial process by which individuals and groups obtain what they need and want

through creating, offering, and freely exchanging products and services of value with

others.” Marketing includes all activities which are concerned with effecting changes

in the ownership and possession of goods and services. The end of all marketing

activities is the satisfaction of human wants. Through the satisfaction of human wants,

profits are rewarded to the business and the reward is inducement for marketing.

Marketing is a connecting link between the consumer and the producer. Consumers are

the targets of every activities performed by business people. The satisfaction of the

consumers is the main perhaps the most sensible objective of the business firm.

Malabar Fruit Products Company has a strong marketing wing. Marketing Manager is

the head of the marketing department. He coordinates and controls all the activities

related to the marketing departments. An Assistant manager helps the marketing

manager in his functions. Malabar fruit Products Company is having six sales

21

executives and five area managers marketing under the assistant sales and marketing

manager. Three persons focus on Kerala and One at Chennai and One at Bangalore.

Fig 3.3 Sales and Marketing Department

Functions

Marketing and Sales Manager

To handle the section

To set a market target

To promote sales

Assistant Manager

To assist manager in his functions

To verify the orders and suppliers

Area Manager

Supervise sales executives

Give report to company on the market

Discussion and negotiation with distributors

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Sales & Marketing Manager

Assistant Sales & Marketing Manager

Area Manager

Sales Executives

Clerical Staff

Sales executives

Work with the distributors to find new markets

Ensure good distribution

Give daily report

Clerical Staff

Order processing

Maintaining records of customers

Advertisement

Advertisements are the lifeline of business today. Nowadays the world has become

very competitive. In this age of competition, goods cannot be sold without proper

advertisement.

Malabar Fruit Products Company advertises its products in

Television

Radio

News papers

Magazines

Journals

Displays

Sales Promotion

Sales promotion has become a major factor in success of marketing in recent years

representing short term incentives to encourage purchase or sale of product or service.

Following are the sales promotional methods adopted by Malabar Fruit Products

Company:-

Free samples of new products are given to consumers along with the existing

products.

Coupons are given with the products and prizes are awarded.

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Giving regular offers to the distributors and retailers.

Seasonal offers to distributors and retailers.

Consumer contests are organized.

Channels of distribution

A channel of distribution is an organized network or a system of agencies and

institutions which, in combination, perform all the activities required to link producers

with users and users with producers. Philip Kotler defines channels as “a set of

independent organizations involved in the process of making a product or service

available for use or consumption”.

Malabar Fruit Products Company has an extensive distribution network throughout

Kerala and Tamilnadu. The company markets its variety of products through

distributors and agencies. These distributors were across Kerala, Madras, Hyderabad,

Mumbai, Gujarat etc. The company is having 237 distributors, among which 67 were

Kerala distributors.

Pricing Strategies

Pricing is the art of translating into quantitative terms, the value of the product or a

unit of a service to customers at point in time. Different companies use different

pricing methods.

In Malabar Fruit Products Company, the price of a product is fixed mainly on the basis

of cost. Also the price of the competitor is considered when pricing a product.

Market Research

Market research agencies help Malabar Fruit Products Company in conducting market

research. Before launching a new product market research is done. After launching the

product also, market research is done in order to know the consumer response. Market

research is also conducted at regular intervals.

Future Plan

Introduce new marketing strategy.

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3.3.3. Personnel & Administration Department

Human resource is a resource like any other natural resource. It means that

management can get and use the skills, knowledge, ability etc through the

development of skills tapping and utilizing them again and again. Human resource is

that process of management which develops and manages the human elements of

enterprise. Human resource management is concerned with the human beings in an

organization. It reflects a new outlook which views organization’s manpower as its

resources and assets. The values, ethics beliefs of the individuals working in an

organization also form a part of human resource. The resourcefulness of various

categories of people and other people available to the organization can be treated as

human resources.

Human resource is the most important resource in any organization. It plays an

important role in the success of an organization. To achieve the predete4rmined

objectives, an organization should have efficient, satisfied and well motivated

employees. According to Flippo “Personnel Management is the planning organizing

directing and controlling of the procurement, development, compensation,

integration ,maintenance and separation of human resources to the end that individual,

organizational and social objectives are accomplished”. Personnel management is an

integral but distinctive part of management concerned with people at work and their

relationship within the enterprise that are conductive both to effective work and human

satisfaction.

The software HRMS is developed for the efficient easy and reliable management of

human resource management information in Fruitoman’s. This system computerizes

all the activities done in that department, this also includes reports to the transactions

handled hence computerized storage of human resource management details can be

achieved through this system.

Personnel management is concerned with getting better results with collaboration of

the people. To carry out these activities every organization will have personnel

department.

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In Malabar fruit Product Company also there is a P&A department. This department is

headed by personnel manager. Assistant Manager-P&A helps the personnel manager

in matters related with the department.

The following are the major activities of the P&A department:-

To maintain better industrial relations in the organization.

To implement & manage welfare measures for the employees.

To maintain all personnel records and carry out all the administrative works

related with the department.

To formulate & implement personnel policies and procedures.

Fig 3.4 Personnel and Administration

Functions

Recruitment & Selection

Recruitment is the process of searching for prospective employees and stimulating and

encouraging them to apply for jobs in an organization.

26

Personnel & Administration Manager

Assistant Personnel & Administration Manager

Accountant

Clerk/Typist

Peon

Selection is the process of picking up individuals with requisite qualifications and

competence to fill in the organization.

Malabar Fruit Product Company is much aware about the importance of Recruitment

and selection process. Hence it has a properly planned selection and recruitment

process.

Source of Recruitment

Internal-(recruitment from within the enterprise) Company’s database, Employees, and

relatives and friends

External-(recruitment from outside) Press advertisements, agencies, Labour

Contractors

Selection Process:-

The Selection process consists of a series of steps. Each step must be successful

cleared before the applicant proceeds to the next .The steps included in selection.

Processes are as follows:-

Steps:-

1. Test: An aptitude test will be conducted on the basis of the position and

number of applicants. The candidates are short listed for the interview.

2. Primary interview: The Primary interview will be with the junior managers

or selection heads.

3. Final interview: The final interview will be with the interview board

headed by MD and Manager-HR

The rating of the interview is done with the help of an interview rating form. The

experience of the candidate will also be given consideration.

Training:-

Training is the act of increasing the knowledge and skill of an employee for doing a

particular job. Every organization needs the services of trained persons & for

performing the activities in a systematic way. The main objective of training is to

bring about efficiency and effectiveness in an organization. So that the organization

27

may remain competitive in highly competitive market situations and for the

achievement of organizational goals.

Malabar Fruit Products Company gives training to newly selected employees in order

to acquaint themselves with the jobs and the new working environment. The company

also gives training to existing employees to improve their level of performance.

Internal trainers and external trainers give training to the employees. The methods

adopted for training are on the job training and class room training

Performance Appraisal:-

Performance appraisal is the evaluation of the individual with respect to his or her

performance on the job and his or her potential for development.

In Malabar Fruit Products Company after selecting and giving training to a new

employee the performance of the employee is evaluated. Also the performances of all

the employees are evaluated during each year. Based on performance appraisal reports

the company is adopting new training programs in order to strengthen the employees

and avoid their weakness.

Malabar fruit Products Company gives cash awards for the best performing employees

in order to motivate them.

Promotions and Transfers

A Promotion is the transfer of an employee to a job that pays more money or that

enjoys some preferred status

Transfer is a change in job where the new job is substantially the equal to the old inters

of pay, status and responsibilities.

In Malabar Fruit Products company transfers and promotions are made on the basis of

performance and the need of the position to the company.

Remuneration and Benefits:-

The needs of the jobs and qualifications of persons who will take those jobs are taken

into consideration while fixing remuneration in Malabar fruit Product Company. The

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company takes all the steps to attract and retain suitable persons. The pay till bill is

prepared on or before 26th of every month.

Employee Welfare:-

Employee welfare means anything done for the comfort and improvement intellectual

or social, of the employees over and above the wages paid which is not a necessity to

the industry.

In order to make workers happy, satisfied and efficient Malabar Fruit Product

Company is engaged in lot of employee’s welfare activities. The company provides

free transportation facilities to the employees. The employees can also spent their time

in the reading room in collaboration with LIC the company has insured the life of

every employees. The company pays the premium of the life insurance policies of the

employees. The company also provides loans the employees for purchaser of

consumer goods.

Industrial Relations

The relationship between employers and employees is called industrial relations.

Industrial progress is impossible without labour management co operation and

industrial harmony.

In Malabar Fruit Products Company the management is maintaining good relationship

with the employees. Personnel department gives more importance to solve the

problems of the employees.

Disputes

Disputes are solved at the same level of happening. There is no history of employer-

employee dispute in the firm.

Grievance Handling

There is proper machinery for handling grievances in Malabar Fruit Products

Company. There is a grievance committee in order to analyse the grievances and find

solution. In some cases the grievances is referred to an arbitrator. The doors of the HR-

department are always open for the employees.

29

Records Keeping

The two very important records prepared and maintaining by personnel department are

personnel file and service book of each employee. Personnel file contains bio-data,

details of educational qualification, medical certificate, Appointment order, etc of the

employee service book contains the details of date of joining, promotion, transfer,

leaves, suspension or any other punishments, etc of the employees.

Working time

The working time of all the employees other than factory workers is from 10am to

5pm. In factory there are three shifts

6am to 2pm - First shift

2pm to 10pm – Second shift

10pm to 6am – Third shift

Future plan

The company wants to maximize its products, in order to achieve this HR department

is encouraging the employees.

3.3.4. Production Department

Production is the process of transferring input into output. The main aim of any

production system is to produce economically the goods and services required by the

customer.

Production is the process of making products. In this process, different inputs like

materials, human, capital and other resources are transformed into higher valued goods

and services. Productions are a process by which goods and services are created.

The software purchase and management system is mainly developed to fulfil the needs

of purchase in Fruitoman’s Ernakulam. This system is developed considering the

processes included in the purchase department of Fruitoman’s. This system

computerizes all the requirements for the completion of the day to day activities done

on that department. There includes reports related to the transactions handled, finished

30

product so on. Hence, computerized storage of purchase details can be achieved

through this system.

In Malabar Fruit Products Company, Production manager is the head of Production

department. Assistant production manager helps the production manger in duties

related to the department.

Under the Assistant production manager there are two engineers.

1. Production Engineer

2. Utilities and Maintenance Engineer(UME)

Production Engineer deals with the various steps in production. He is responsible for

the shift allocation of the employees. The utilities and maintenance engineer maintains

at good conditions.

Fruitoman’s pineapple jam is remarkably unique among all brands of jam available in

India. Only Fruitoman’s pineapple jam contains the highly essential and natural

pineapple fibre and, it doesn’t contain absolutely any synthetic colour. Fruitoman’s

canned products do not contain any artificial flavour or preservative at all. Since

canned foods are cooked, sterilized and packed in vacuum, they remain intact for

longer periods. Once opened, most foods will last as long in the can as ordinary

cooked food, but the same thing will last longer if stored in a refrigerator. It is best to

empty the fruits from the can into a glass or stainless-steel dish. There are lot of

precautions to be taken while canning: we have to make sure that there is no

fermentation taking place within the can, that there is no hydrogen formation as a

result of corrosion of the can or due to overfilling or inadequate exhausting, and that

there is no harbouring of deadly clostridium botulinum. Fruitoman’s green pepper in

brine is immensely popular in both the Europe and the states as well as in the Far East.

Fruitoman’s makes a vast array of confectionery complements- like custard powder,

corn flour, ice- cream mix, baking powder, jelly crystals, gelatine, china grass, icing

sugar and vanilla powder. All these Fruitoman’s confectionery complements are

extremely popular with the discerning housewives and those interested in cooking

specialized dishes, cakes and pastries.

31

The purchase of raw materials is also handled by the production department. The

production manager has the responsibility of purchasing raw materials.

Fig 3.5 Production Department

Production Infra Structure

Malabar Fruit Products Company has a state of the art production facility located at

Vazhakulam in central Kerala. The facility conforms to Fruit Products Order(FPO)

standards for manufacturing units.

Qualified, experienced personnel drawn from a cross section of food product industry

man the facility.

Hygiene- The Highest Priority

Hygiene is given much importance in the manufacturing process.

Raw material level

Through pre-cleaning and inspection is done before any raw material is passed on to

production. Inspection for the microbial contamination and pesticides is done in

sophisticated labs.

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Production Manager

Assistant Production Manager

Production Engineer UME

Workers Electrician

In Process Hygiene

Periodic, standard cleansing procedures for boiler, ducts and vessels is done under

expert supervision. Personal hygiene of workers is ensured by antiseptic dips at entry

and exit. Work clothes are cleaned and sterilized in a state of the art facility.

Finished Product Hygiene

The bottles for packing finished products are cleansed and sterilized by an advanced

technique. Caps also pass through a similar process.

Machinery and Equipments Used

Can beading Machine

Cabinet Drier

Syrup Filler

Orange-Shirding Machine

S.S Kettle

Coring Machine

Flange

Pineapple Slicer

Fruit Mill

Hydraulic Press

Mango Pulper

Exhaust Box with Conveyer Belt

Lubeck seamer

Coconut Milk Extractor

Colloid Mill

Homogenizer

Juice Expeller

Bioler with accessories

Automatic Seaming machine

Reformer Machine

Vessels

Electric Hoist

Raw Materials Used

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The main raw materials are

Pineapple

Mango

Jack fruit

Carrot

Tomato

Orange

Lime

Potato

Garlic

The main raw materials used are pineapple, mango and jack fruit. They are seasonal,

leaving the plant idle for about six months, causing high overhead expenses and low

capacity utilization. The company is trying to find out other horticulture products

which can fill gaps in production. The company has also plans to setup a cold storage,

using which the company can store horticulture products in peak season and process

them later.

Present Product Mix

The brand name of the products of Malabar Fruit Products Company known as

“FRUITOMAN’S”. Fruitoman’s is the best known brand among all the processed fruit

products available in India. Fruitoman’s products are perfect from the health point of

view. Fruitoman’s products are generally free of synthetic additives. There is, for

example, absolutely no synthetic colour in Fruitoman’s pineapple jam. Colour

normally heightens the appeal of processed food and fruit products, but colour has no

nutritional or preservative functions.

Fruitoman’s Sarsaparilla Syrup is a wonderful health tonic and it lends itself to a

myriad of delectable cocktails and refreshing mock tails. Fruitoman’s Sarsaparilla

Syrup is considered an excellent rejuvenator and revitalize. Top authorities in cake-

baking and pastry-making recommend fruitoman’s confectionery complements.

Fruitoman’s makes a vast array of confectionery complements like custard powder,

Corn flour, ice cream mix, baking powder, jelly crystals, gelatine, china grass, icing

34

sugar and vanilla powder. We can make really stunning dishes with Fruitoman’s

products

All varieties of jam in 20gm packing are specially used for in-flight and 5-star catering

purposes.

Fig 3.6 Production Process of Pineapple Juice

Production process of pineapple juice starts from the collection of pineapple from

local farmers or directly from the markets. After getting the fresh pineapple in the

company premises, the main process starts. First of all both ends are removed (cutting

ends). Then the skin is removed and the flesh is crushed to get the juice. This juice is

filtered and blanching process starts. Finally necessary ingredients are added and the

juice is left to cool. After this, filling process starts. That is the juice is filled into

appropriate containers and stacked in godown for 15 days and sold in markets.

35

Cutting ends

Skin removal

Crushing

Juice Extractor

Filter

Blanching

Ingredients

Filling

Future Plan

They are planning to introduce new production technology and to develop new

moving products in the market.

3.3.5. Quality Control Department

The role of quality control department is to ensure the quality of raw materials before

it is used for processing and after the marketing for final product. The quality control

department is headed by the quality control manager. When raw materials are

collected from outside, the manager assures the quality of raw materials and then it is

transferred to production department. They conduct the following analysis.

Colour

Flavour

Taste

Acidity ratio

Pulp percentage

Microbiological analysis

Water analysis

Fig 3.7 Quality Control Department

36

Quality Control Manager

Quality Control Officer

Quality Control Assistant

The employees under this department are

Quality Control Manager

Quality Assurance Officer

Quality Assurance Assistance

The quality control manager has the responsibility of checking whether the production

processes are under the requirements of the quality control standards. Quality

assurance officer and quality assurance assistants assist him for checking the quality

measurements. Quality assurance assistants are doing the above mentioned analysis in

the company at every stage of production and report it to the production manager. The

quality assurance assistant gives proper assistance to quality assurance officer for

maintaining quality of the final product. Those assistants are also responsible for

monitoring the environment of the manufacturing process because factors not directly

involved with the process may affects it efficiency and the quality and safety of the

final product. These responsibilities include

Monitoring action taken to prevent infestation of the processing plant by

insects, birds and animals

Accessing the effectiveness of cleaning and sanitizing programmes

Determining that staffs are clean, in good health and dressed in appropriate

garments

Ensuring that storage areas are clean and tidy and have appropriate

temperatures and humidity

Determining that waste disposal systems are operating satisfactorily

The company takes every care from the selection of raw material to the final product.

The major characteristic of the product is quality. Malabar Fruit Products Company

ensures the quality and hygiene of the products. The qualified professionals of the

company analyse all the quality parameters during production are constantly

monitored to ensure that the final product is produced with desired quality. The

company maintains highest quality standards to meet the requirements of the

customers in national and international markets.

Quality test

37

In order to test the samples like pulp, juice, water, cans etc some laboratory test are

conducted periodically. These test are conducted during different stage of operations

to ensure the quality of the finished products.

The tests are:-

Physical test

Taste

Appearance of the tin

Labelling details

Chemical test

Acidity

Acid ratio

Microbiological test

Yeast and mould

Total plot count

38

3.4. Organizational Analysis

3.4.1. Key Resources

Having the factory in the middles of Kerala’s own pineapple market, this is an

advantage to the company. Availability of raw materials is ensured by this.

3.4.2. SWOT Analysis

The main strength of the Malabar Fruit Products is headed with good marketing

network. That is company’s area sales managers are in direct contact with state wise

and regional distributors, this will lead to get more business. High quality machineries,

imported from developed nations are main backbone of Malabar Fruit Products.

Pineapple is mainly grown in middle Kerala. As a blessing of god the main place is

Vazhakulam and the factory is also located at Vazhakulam. Moreover the company is

having a dedicated group of staffs.

Like the two sides of a coin, there are some weaknesses also. Lack of R & D lab leads

to the shortage of new products and new techniques of products. The general public is

not bothered about the brand name of the product which will lead the public in seek of

low quality products. Advertisement costs are very high and the company is forced to

limit advertisement.

Now the general public is looking forward to new varieties of fruits in spite of other

heavy food. Fruit products are having vast demand all over the world. This will lead

the company to seek new opportunities.

At present similar products are imported from other countries at less cost. Kerala is

mainly depending upon monsoon. Hence at off-season the raw materials have to be

paid at extreme. Moreover the customers are always looking forward to new taste and

their wishes are also always changing.

Strengths

Extensive marketing network of Malabar Fruit Products Company.

Imported high quality machineries produce super quality products at less cost.

Having the factory in the middles of Kerala’s own pineapple market.

39

Malabar Fruit Products Company has built up a strong customer base through

its quality products.

Advanced machineries.

Dedicated employees of the organization.

Good Customer Relations: Maintaining good relationship with customers is

one of the major function of ever firm.

Good Fire & Safety measures to avoid accidents.

Weakness

Absence of good R & D lab is a limitation for Malabar Fruit Products

Company.

Motivation level of workers is found to be low.

Less brand awareness among public.

Lack of effective advertisement.

Opportunities

Boom in the fruit products industry.

Innovate and bring out new products to meet new needs.

Wide market all over the world.

Adding more countries to its export list.

Wide consumption of fruits.

Threats

High competition.

High quality products from other countries.

High cost of fruits in the off season.

Change consumer’s preference and taste.

40

CHAPTER FOUR - OBSERVATION

AND CONCLUSION

Observation

During the organization study at Malabar Fruit Products Company it was possible to

observe a lot of things. Organizational study helped to familiarize with different

functions and the organizational structure also. This study helped to know about the

different departments of the company and also the various functions. The company is

involved in lot of employee welfare activities. For the success of an organization

winning the confidence of the employees is an essential factor. Advertisements help in

developing a favourable consumer attitude towards the product. Malabar Fruit

Products Company also has realised the importance of advertisements and is spending

a lot of money in this field. Also the company gives lot of importance to sales

promotion activities. Due to this study, it was possible to observe the overall

performance and the functioning of the company.

Conclusion

The organizational study conducted at Malabar Fruit Products Company, the

manufactures of Fruitoman’s brand food product was very helpful in studying the

functioning of various departments, through proper communication and interaction

with the personnel.

This study was helpful to know that the company has a good organization structure

and an effective management system. Also the company has a good position in the

fruit products industry.

Organizational study helped to get ample information in the future business

profession.

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