RALA STATE CASHEW DEVELOPMENT CORPORATION

REPORT

Submitted by

RAHUL.B.RAJ

In partial fulfillment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

Seema Chakrabarthi

CHRIST UNIVERSITY-BANGLORE

(2012-14)

1

DECLARATION

I hereby declare that the project work done on the KERALA STATE CASHEW

DEVELOPMENT CORPORATION .For 30 days under the guidance and

supervision ofMR. Gopa kumar(Personnel Dept.), is an original and bonafide

Work done by me in requirement of the award of Master of Business

Administration at CHRIST UNIVERSITY.

(Signature)

RAHUL B RAJ

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ACKNOWLEDGEMENT

First of all I thank GOD the Almighty, who blessed me with courage and

determination to cope up with all the problems in my life and to complete this

project successfully.

I am greatly indebted to many people who have extended their kind help and valuable cooperation directly or indirectly in completion of this project work.

We thank the management of WIP Ltd. For giving me permission for conducting the project work in their esteemed organization am extremely greatful to Dr K A RATHEESH,the managing director of WIP Ltd. For helping me in the completion of this project work.

I express my gratitude to Mr.Gopa Kumar (Personal Dept.) for his valuable Advices and cooperation.

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SERIAL NO:

CONTENTS PAGE NO:

1 COMPANY PROFILE AND HISTORY

2 ORGANISATION STRUCTURE

3 FUNCTIONS OF DEPARTMENT

4 HRD MEASURES

5 ACCOUNTING

6 SYSTEM OF PURCHASE

7 SWOT ANALYSIS

8 FINDINGS

9 SUGGESTIONS

10 CONCLUSION

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COMPANY PROFILE & HISTORY

The Kerala State Cashew Development Corporation Limited was incorporated

in July 1969 and started Commercial activities in the year 1971 as a company fully

owned by the Government of Kerala. From the modest beginning in 1969

Corporation has now grown into a large organization playing a pivotal role in

cashew industry in the world. Corporation has now more than a turnover of Rs.

250 crores.

Now KSCDC is running 30 cashew factories all over the Kerala State. In these

factories more than 20000 workers and 1500 staff members are working.

Corporation is a model employer in the field of cashew industry mainly to protect

the interest of workers and to provide maximum employment to its workers and to

give statutory benefits like minimum wages, bonus, etc. prevaling in the cashew

industry.

To increase the production of indigeneous raw nuts cashew corporation has started

cashew plantation in the State. Corporation has also introduced four value added

cashew products in the market.

KSCDC was started in 1969 mainly to protect the interest of cashew workers who

were exploited by private processors. In the initial stage, it was a success, but later,

problems began to crop up with accumulated losses mounting and consequently,

the Corporation was closed for two years from 2002 to 2004.

In 2004-05, the Government took the initiative to re-open the factories by entering

into a settlement with banks. The first attempt was to give continuous employment.

It was a success and yielded 235 days in 2005.

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As usual, the operation ended in loss. The reasons are fluctuation in prices, no

parity in workers (shelling, peeling and grading), interest burden in the old dues,

big overheads, etc. Bankers were reluctant to give further financing. At this

juncture,the company should have been closed but professionalism helped the

company to survive.

Using the negative working capital strategy, the corporation continued the work. It

created an impression in the market that it was working continuously, which in

turn helped it secure funds from market as advances for the purchases. Meanwhile,

bankers stopped transactions. In 2006-07, the Government took another initiative

to discuss the issue with the bankers.

However, time-bound settlement has not happened so far. In order to get good

price for the end product, KSCDC introduced new products in the brand name

“CDC Cashews”.

This was the first time in the history of the cashew industry that true value-added

products such as Cashew Soup, Cashew vita, Cashew Powder and Bits, developed

by the CFTRI were introduced.

The Kerala State Cashew Development Corporation Limited locally purchase and

import raw cashew nuts and export the kernels in large quantities. 80% of sale is by way

of export. Indian Grade Kernels, Rejection Grade Kernels, Cashew Shell, Cashew

skin, Shell Oil etc .are the byproducts of raw cashew nut. The Kerala State Cashew

Development Corporation Limited has a capacity to process 150MT of raw cashew

nuts per day.

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Value added products in the market:

1) Cashew vita

2) Cashew soup

3) Cashew powder

4) Cashew Bits

1) Cashew vita

An instant beverage mix suitable for all age groups consisting naturally

occurring materials such as cashew powder, sugar, milk solids, cereal flour,

etc.

2) Cashew soup

Cashew soup mix is a purely a vegetarian mix for preperations of ready to

serve instant soup. Main ingredients are cashew powder, edible starch, cereal

flour, milk solids, dried vegetables, pepper salt and sugar along with MSG.

3) Cashew powder

Plaincashew in powder form made suitable for cooking by blending with

cornstarch. It provides astonishing taste and thickening of cashew in

prepeations such as desserts, ice creams. Payasams, vegetable and non-

vegetable curries by avoiding grinding or pasting of cashew kernels.

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4) Spiced cashew bits

Dry roasted cashew bits with chilly and salt coating. It is free from frying

oils and is an ideal snack for any time.

The chocolate-coated cashews are the new addition to the innovative range of

products by the KSCDC. The latest addition is going to be cashew noodles aimed

at domestic metros and overseas markets in Asia where this product is popular.

The Mysore-based Central Food Technology Research Institute of India, CFTRI, is

working on to develop this product, he said. The Indian Institute of Foreign Trade

is carrying out a market study for the corporation in China and Russia and its

report is expected early next year

The technology for the cashew chocolates has been developed by the Central Food

Technology Research Institute (CFTRI), Mysore, and the product is poised to be

launched by the end of this financial year. They would be available in milk

chocolate and brown chocolate varieties and the production will begin at the

Kottiyam and Ayathil units of the KSCDC once the machinery is installed.

Another product in the pipeline is cashew noodles. Marketed as ‘CDC cashews

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ORGANISATION STRUCTURE

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Board of Directors

Chairman

Managing Director

Asst personal manager

Finance Manager

Production Manger

Commercial Manager

Material Manager

Company Manager

Personal Manager

Assistants

Assistants

Asst finance manager

Asst production manager

Asst commercial manager

Asst materials manager

Computer Assistant

Superintend Superintend Superintend Superintend Peon

Assistants Assistants Assistants Assistants Assistants

Functions of various dept: and managers

PERSONAL DEPARTMENT

STRUCTURE

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Asst personal manager

PERSONAL MANAGER

Assistants

Assistant personal officer

Assistants

Assistant personal officer

Assistants

Assistant personal officer

Assistants

Assistant personal officer

Assistants

Assistant personal officer

To activate association and employment to take part in HR Activities which

are beneficial to both employer and management

To monitor the utilization and effectiveness of HRD training

To act for the welfare of employer

To provide healthy, and safety environment for employees to work with

To act as a centre for appointment, transfer and promotion of employees

Government correspondence

To prepare and submit L.A report

To take disciplinary measures in the organization

To engage in the work related to P.F, E.S.I and gratuity

Personal manager

Formulating of HRD functions and suggesting the HRD needs of the

organization

To find out ways and means of implementation of HRD functions

Monitoring the HRD activities of the organization

To bridge the gap between the management and the employees in relation to

human resource development

Total commitment towards implementation of HRD

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FINANCE DEPARTMENT

STRUCTURE

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Finance Manager

Asst finance manager

Superintend

Senior Assistant

Peon

Recordings of the day today business transactions that is accounting control all the

mental activities in the organization planning and controlling expenses funds for

operation. Approving and making payment to different parties i.e creditors,

suppliers receiving payments from customers dealers and through banks and

accounting their funds preparation of sales budgets and remove budgets and

expenditure budgets and expenditure budgets on yearly basis at the end of

February every year.

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Production department

STRUCTURE

14

Production Manager

Superintend

Checker

Assistant

Peon

Total number of employees in production department

Employees in 30 factories – 1500nos

Workers in factories-25000nos

The working hours in factories 8:00 am-5:00 pm

Office timing- 10:00-5:00 pm

Functions of department

Head I (15 factories)

Verification of processing sheet

Preparation of review statement

Verification of raw materials stock statement and maintaining stock

Verification of finished goods statement

Verifying and dispatch of kernels from branch factories and its receipts and

filling centers

Maintains of stock register of factory kernels and raw materials

Verification of production statement

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Head 2

Verification of processing sheet

Preparation of review statement

Verification of raw materials stock statement and maintaining stock

Verification of finished goods statement

Verifying and dispatch of kernels from branch factories and its receipts and

filling centers

Maintains of stock register of factory kernels and raw materials

Verification of production statement

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Head 3

Maintenance of outturn register

Consolidation of products statement of per bag statement.

Raw null allotment.

Consolidation of raw statement and comparative report.

Assisting A.G’s audit.

Preparation of consolidation statement of local African raw material notes in

unit factories.

Tallying statement of kernels(production, dispatch receipts, filling and

filling balance)

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Head 4

General correspondence.

Verification of various statements received from factory.

Disciplinary actions.

Verification of checkers inspection report

Accounts relating to filling kernels in consumers packets, stocks and

dispatch.

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Head 5

Indian grade stock register.

Rejection stock register

Tin factory product statement

Raw nuts stock register and consolidation of cashew shell

Production statement and cashew still stock statement.

Head 6

Steno(all typing works re;ating to production department)

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PRODUCTION PROCESS

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Raw Material

Roasting Shelling Peeling Grading Packing

Finished cashew and its by-products

STORES AND MAINTANENCE DEPARTMENT

STRUCTURE

21

Production Manager

Superintend

Assistants

Peon

Stores department

The main functions of this department is to purchase of all stationeries plants,

machinery and other allied items and store properly and make it available for

factory of advertising and promotion of cashews.

Purchase of plants and machinery for the factory

Purchase of furniture and stationeries.

Proper maintanence of plant machinery.

Sale of scraps

Purchase of motor vehicle for the office

Advertising the cashew kernels

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Commercial department

STRUCTURE

23

Commercial Manager

Assistant commercial manager

Superintendent

Senior Assistant

Junior Assistant

Peon

The main functions of the department are to purchase raw nuts from the local and

forign market and sale of cashew kernels, shell and skin. The KSCDC ltd export

80% of their purchase.

Commercial manager

Commercial manager will overall charge of commerce section and will attend any

other work entrusted by the MD.

A.C.M is entrusted with the following works

1. All work connected with local sales of plain and value added kernals, Indian

grade, rejection CNSL.

2. Sale of cashew shell

3. Maintanence of out agency register.

Payment of C&F bills import-export commission bills, call refund, draw back

government correspondence, legal matters.

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Superintendant

1. Verification of contract of export

2. Preparation of export bill, after recording in the respective register.

3. Maintaining of export register, month war register, invoice register.

4. Shipment advice to buyers agents

5. Forwarding of foreign invoices and other docu. To bank and follow up.

6. Posting of copy docu. To buyers and agents

7. Issue of shipping marks to all packaging centers

8. Any other work entrusted by CM/ACM the main function of this department

come under sir heads.

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Head 1

Make available of LC in time and enter it in register, verification of LC and

follow-up action rectify the discrepancy if any.

Arrangement of inspection and intimation to C&F agent.

Transportation to part of shipment.

Maintenance of EIA label register. Supply of EIA label adhesive to factories,

maintenance of pass book and EIA and expenditure statement

Preparation of shipping instruction.

Any other work interested by the management.

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Head 2

All work connected with DEPB license

Advance license

Sale of DCPB and other kicense

Correspondence with CEPC grant in aid

Implementation with cepc grant in aid

Implementation of ISO, HACCP

Trading house star house, FIEO,CEPC. Foreign tour correspondence with

RBI, RCMN, third party exports.

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Head 3

All works connected with import of raw nut, tin sheets, packing machine

Proper maintanence of import register and files

Invitation for tenders for C&F work and payment of C&F bills for import

Daily foreign exchange collection and follow up operation of telephone, fax,

photo copier computer

LA interpellation

Any other work interested by the management

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Head 4

Local sales of cashews kernals, CNSL, shell. Indian grade rejection tanning

value added products

Maintanence of foreign claim, rtegister file and follow up action

Inviting tenders for C&F work of export, submission of returns to

departments , CEPC etc

Preparation of price for local sales including consumers society

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Head 5

Maintanence of commission registers

Payment of commission bills

Entering of export sales of month war register. Oreperation of export fire

Advertising

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Typists

All typing work and computer operation

Maintenance of daily register showing the letter number typed every day

Any other work instructed by management

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Trade union

AITUC

INTUC

UTUC

CITU

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HRD Measures

BONUS SYSTEM

Usuallay the organization provide 20.5% bonus to factory workers. Employees are

also eligible for bonus (salary below Rs. 3500). The bonus provided in a way of

month and 3 days salary(Rs.2500).

WAGE AND SALARY

Wage to workers are find by the minimum wage committee which is appointed by

the government. Salary to staff is determined by the industrial relations committee

which also is appointed by the government.

RECRIUTMENT AND SELECTION PROCESS

Recruitment of employees are done through PSC under KPSC Act. Staff including

factory watchmen is selected through employment exchange other workers are

selected directly.

PERFORMANCE APPRAISAL

It is done through annually

Productivity training to workers by way of selecting representatives from

workers.

Refreshment training course often conducted.

LABOUR WELFARE BENEFITS

Provident fund

Leave with wages

Canteen facilities

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E.S.I facilities

Cashew workers relief and welfare fund

DEATH RELIEF SCHEME AND MEDICAL CASE

In case accident sickness inside the factory the necessary arrangement will be

made for taking the sick person to the hospitals provision are made for giving first

aid.

RETIREMENT BENEFITS

Retirement benefits to employees like provident fund and family pension.

GRIEVANCE HANDLING PROCEDURE

An effective system of grievance handling exist when any conflicts arise MO calls

a meeting of trade unions and it is solved through discussion and the decision is

forward to board of directors for approval.

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ACCOUNTING

The accounts are prepared under the historical cost convention on accrual basis

with applicable accounting standards. The mercantile system of accounting is

followed in the organisation.

Inventories valuation

(a) Raw materials at cost.

(b)Factory stores and spares are valued at cost. Empty gunnies at net realizable

price.

(c) By-product and finished goods at net realizable price.

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SYSTEM OF PURCHASE

The system of purchase followed in KSCDC is by issuing quotation. They issue

notices through their website, news paper, etc.

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SWOT ANALYSIS

STRENGTH

Larger export of cashew

KSCDC has a capacity to process 300mt of raw cashew nut per day

The corporation provides large volume of employment oppurtunities

corporation has more than 2500skilled labours

the availability of rare grades of cashews(W180 of W210)

WEAKNESS

comparitively low degree of promotional policies

low degree of performance appraisal programs

KSCDC has no own franchises and distribution channels

10% of total product losses due to moisture

Lack of competetiveness

OPPURTUNITY

Expets further growth by introducing innovative value added products.

Customer friendly packets to capture market easily

Salted and roasted cashew has good demand in foreign and in local markets

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THREATS

They face extremecompetition in the market

Arrival of MNC’s in this industry cause threats tomthe existing firms

Better promotional strategies introduced by the competitors

Rigidity of the firm finds difficult to adjust with the prevailing market

situation

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The Corporation is running 30 factories throughout the state:

 

1. Factory No.1, Kottiyam (Kollam District) (Ph: 0474-2530033)

E m a i l :   f 1 @ c a s h e w c o r p o r t i o n . c o m  

2. Factory No. 2, Kilikolloor (Kollam District) (Ph: 0474-2731277)

E m a i l :   f 2 @ c a s h e w c o r p o r t i o n . c o m  

3. Factory No. 4, Kayamkulam (Alappuzha District) (Ph: 0479-2442250)

E m a i l :   f 4 @ c a s h e w c o r p o r t i o n . c o m  

4. Factory No. 5, Mynagappallay (Kollam District) (Ph: 0476-2847726 )

E m a i l :   f 5 @ c a s h e w c o r p o r t i o n . c o m  

5. Factory No.6,  Ayathil (Kollam District) (Ph: 0474-2729023)

E m a i l :   f 6 @ c a s h e w c o r p o r t i o n . c o m  

6. Factory No. 7, Nooranad (Alappuzha District) (Ph: 0479-2386323)

E m a i l :   f 7 @ c a s h e w c o r p o r t i o n . c o m  

7. Factory No. 8, Puthoor (Kollam District) (Ph: 0474-2415532)

E m a i l :   f 8 @ c a s h e w c o r p o r t i o n . c o m  

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8. Factoy No. 9, Kilimannoor (Thiruvananthapuram District) (Ph: 0470-

2672224)

E m a i l :   f 9 @ c a s h e w c o r p o r t i o n . c o m  

9. Factory No. 10, Irinjalakuda (Thrissur District) (Ph: 0480-2820204)

E m a i l :   f 1 0 @ c a s h e w c o r p o r t i o n . c o m  

10. Factory No. 11, Edamulakkal (Kollam District) (Ph: 0475-2273273)

E m a i l :   f 1 1 @ c a s h e w c o r p o r t i o n . c o m  

11. Factory No. 12, Chathannoor (Kollam District) (Ph: 0474-2593381)

E m a i l :   f 1 2 @ c a s h e w c o r p o r t i o n . c o m  

12. Factory No. 13, Thalassery  (Kannur District) (Ph: 0490-2352609)

E m a i l :   f 1 3 @ c a s h e w c o r p o r t i o n . c o m  

13. Factory No. 14, Bharanikkavu (Kollam District) (Ph: 0476-2830357)

E m a i l :   f 1 4 @ c a s h e w c o r p o r t i o n . c o m  

14. Factory No. 15, Chittumala  (Kollam District) (Ph: 0474-2585227)

E m a i l :   f 1 5 @ c a s h e w c o r p o r t i o n . c o m  

15. Factory No. 16, Adinad (Kollam District) (Ph: 0476-2897531)

E m a i l :   f 1 6 @ c a s h e w c o r p o r t i o n . c o m  

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16. Factory No. 17, Kannanalloor  (Kollam District) (Ph: 0474-2501035)

E m a i l :   f 1 7 @ c a s h e w c o r p o r t i o n . c o m  

17. Factory No. 18, Meikone (Kollam District) (Ph: 0474-2710995)

E m a i l :   f 1 8 @ c a s h e w c o r p o r t i o n . c o m  

18. Factory No. 20, Elampalloor (Kollam District) (Ph: 0474-2522398)

E m a i l :   f 2 0 @ c a s h e w c o r p o r t i o n . c o m  

19. Factory No. 21, Palkulangara (Kollam District) (Ph: 0474-2710253)

E m a i l :   f 2 1 @ c a s h e w c o r p o r t i o n . c o m  

20. Factory No. 22, Nedumpaikulam  (Kollam District) (Ph: 0474-2522368)

E m a i l :   f 2 2 @ c a s h e w c o r p o r t i o n . c o m  

21. Factory No. 24, Karimulakkal (Alappuzha District) (Ph: 0479-2382332)

E m a i l :   f 2 4 @ c a s h e w c o r p o r t i o n . c o m  

22. Factory No. 26, Thettikkuzhy (Kollam District) (Ph: 0474-2530014)

E m a i l :   f 2 6 @ c a s h e w c o r p o r t i o n . c o m  

23. Factoy No. 27, Eravipuram (Kollam District) (Ph: 0474-2728143)

E m a i l :   f 2 7 @ c a s h e w c o r p o r t i o n . c o m  

24. Factory No. 28, Parippally (Kollam District) (Ph: 0474-2572053)

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E m a i l :   f 2 8 @ c a s h e w c o r p o r t i o n . c o m  

25. Factory No. 29, Paruthumpara (Kollam District) (Ph: 0474-2522497)

E m a i l :   f 2 9 @ c a s h e w c o r p o r t i o n . c o m  

26. Factory No. 30, Kunnathoor  (Kollam District) (Ph: 0476-2856135)

E m a i l :   f 3 0 @ c a s h e w c o r p o r t i o n . c o m

27. Factory No. 31, Kallumthazham (Kollam District) (Ph: 0474-2710228)

E m a i l :   f 3 1 @ c a s h e w c o r p o r t i o n . c o m

28. Factory No. 32, Kanjamkadu (Kollam District) (Ph: 0474-2747384)

E m a i l :   f 3 2 @ c a s h e w c o r p o r t i o n . c o m  

29. Factory No. 33, Kadakkal  (Kollam District) (Ph: 0474-2422023)

E m a i l :   f 3 3 @ c a s h e w c o r p o r t i o n . c o m  

30. Factory No. 34, Chengamanad (Kollam District) (Ph: 0474-2402554)

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FINDINGS

KSCDC is one of the largest exporter of cashew nuts in India

In KSCDC lion share of workers is women.

Most of the labors are skilled people.

KSCDC is a model employer.

Company focuses both on foreign and Indian market.

Innovative value added products.

Lack of sophisticated equipment and facilities.

Advertisement section is weak.

All the factories are at good locations.

A healthy relation between trade union and management.

Recycling process is not doing well.

An important thing I noticed was the number of working days it was 288

days last year.

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SUGGESTION

After my study at KSCDC I have some suggestions and some solutions for the well

being and effective working of organization.

Computerizing should be made effective.

Advertisement of products is important for growth of organization.

Training should be made effective.

Reducing wastage will decrease cost of production.

To purchase quality raw materials to avoid losses.

To start their own distribution counters for direct sale.

Give franchisees for getting income through commission.

Campus recruitments should be made for more skilled workers.

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CONCLUSION

Kerala State Cashew Development Corporation is one of the leading cashew

corporations in the world. It produces a large quantity of cashew nut and exports in

India. As it is a government institution it is not a profit motive organization and it

looks the welfare of the workers and they are fulfilling their aim.

Now the company is in breakeven point but soon it will acquire profit and it

is a fast growing organization. The workers are working hard for their growth. It is

totally a workers oriented organization; workers are the backbone of the

organization. As it is a government institution it is facing some limitations even

though they tackle all those limitations and emerging into the lights of profit.

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