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INTRODUCTION
Cashew has a long history as a useful plant but only in the present
century, it has become an important commercial tree nut. Portuguese
explorers brought the cashew tree to India in 1558. It is cultivated for
food and medicine value, since the last 400 years &during world war
second, it become highly priced as valuable oil drawn from the cashew
shell.
Cashew nuts are regarded as a luxury food and quality is the
prime determinant of price cottage industries. Cashew processing is an
excellence alternative to large scale, capital intensive. This study makes
an attempt to know over all production process and marketing activities
of Cashew Kernels and Cashew Nut Shell Liquid (CNSL).
OBJECTIVES OF THE STUDY
To know need and importance of cashew kernels as well as CNSL.
To understand processes required for the production of kernels and
CNSL.
To know the adopted machines, equipments and tools used for
processing and production.
To know the number of functional departments working in the
factory.
To know major trading centre of cashew in India.
SCOPE OF THE STUDY
The scope of the study is limited to KVS&SONS Cashew Factory
Mangalore. This study done was, mainly on production and marketing
activities of cashew. And the information relating to the topic has been
collected from production unit.
1
METHODOLOGY
The study has been conducted at Mangalore. This project is based
on primary data by personal consultation with the manager, supervision
and staff members at KVS.
The project is also relied on secondary data such as books, internet,
and other reports of the business firm; hence information is collected
from the factory under study by personally visiting.
RESEARCH INSTRUMENTS: The main research instruments
were;
QUESTIONNAIRS: The information was collected with the help of
questionnaires.
DIRECT PERSONAL CONTACTS: Personal contacts with the
source persons were the main source of information for analysis purpose.
LIMITATIONS OF THE STUDY
Non availability of some information is the major limitation, which
made the study difficult in completion of the report.
It is expensive to complete the study.
Generalization was not possible.
Due to less time it was not possible to get more information.
It is assumed that the respondent’s informant is accurate.
2
INTRODUCTION
Cashew (Anacardium Occidentale L.) belongs to the family
Anacardiaceous. The Portuguese took this plant to the old world and
planted it European countries. This was the time cashew started to
become famous in the world. Portuguese were the one who introduced
this crop into India mainly in Goa five centuries ago for wine and brandy
production. It was also planted as it helped in binding the soil. The
commercial importance of cashew nuts was not known at that time. The
climate in here was well suited to the plant and it prospered in the other
parts of the country too. Trading in cashews started as late as in 1920s.
Cashew trees, which may live for Thirty to Forty years. Start
bearing frit in the third or fourth year. They grow in warm regions, with
an annual rainfall of 1000 to 3000mm, mainly in Central and South
America, Asia and Africa. Native from Brazil, the cashew tree were
planted in India in the 16th century to prevent soil erosion. Easily
cultivated, they require little care and produce an annual average of 50 to
75 Kg of apples and nuts per tree, yielding approximately 3 Kg of cashew
kernels.
The cashew tree produces fruit and a by-product; the nutshell oil.
The fruit consist of two parts: a pear-shaped stalk called the cashew
“APPLE” which is an edible food rich in vitamin “C”. And it also mixed
in fruit salads and a drink is prepared from the juice. Another part is that
grayish-brown kidney-shaped nut (HS 0801.31), which is attached to the
lower end of the apple and contains a slightly curved white kernel (HS
0801.32), wrapped in a thin brown skin or testa, sizes of which are
measured in counts of between 180-240. The nutshell, which is smooth
and oily, contains a toxic, resinous material from which is obtained the
CNSL (Cashew Nut Shell Liquid).
3
ABOUT THE CROP-CASHEW
FACTORS
1. Climate
Cashew is essentially a tropical crop, grows best in the
warm, moist and typically tropical climate. The distribution of
cashew is restricted to altitudes below 700 m, where the
temperature does not fall below 200C for prolonged periods,
although it may be found growing at elevation up to 1200m.It is
best adapted to the coastal regions. The cashew is hardy Sand
drought resistant, but it is damaged by frost.
2. Rainfall
Cashew is grown in areas with rainfall ranging from 600-
4500mm per annum. Fruit setting in cashew will be good if rains
are not abundant during flowering and nuts mature in a dry period.
3. Temperature
Cashew is sun-loving tree and does not tolerate shade. It can
tolerate temperature of more than 360C for a shorter period but the
most favourable temperature lies between 24C to 28C.
The climate factors influence the cashew growth and
production as follows:
Dry spell during flowering and fruit setting ensures better
harvest.
Cloudy weather during flowering enhances scorching of
flowers due to tea mosquito infestation.
Heavy rains during flowering and fruit set damages production.
High temperature (39-420C) during stage of fruit set
development causes fruit drop.
4
4. Soil
Cashew can be grown on a wide range of soils except heavy
clay, water logged and saline soils. Well-drained red, sandy laterite
soils are ideal for good growth and yield of cashew.
5. Varieties
Selection of suitable cashew varieties for the specific region
and appropriate package of practices determines the final yield.
More than 30 varieties, which are having exportable grade of
cashew kernels, are released from different research institutes in
India and details are furnished separately.
6. Planting Material
Selection of planting material is most important in cashew
cultivation. Softwood grafting is only method which is
commercially feasible and practically high successful in cashew.
7. Spacing
The normal recommended spacing is 7.5*7.5m to 8*8m and
spacing may be reduced up to 4m*4mdepends on type of soil
managerial capacity.
Method and Season of planting
The square system of planting can be followed. The ideal
time for planting is usually during monsoon season when the
moisture is air surcharged (June-August) both in the west and east
coast. If irrigation facilities available, planting can be done
throughout the year except winter months.
5
8. Weeding
Clearing the area by manually with in 2mtr radius of the
trunk and slashing the remainder is essential until the trees shade
out most of the trees. Weeding can be done by chemically also.
9. Training and Pruning
It is the important horticulture practice to be employed to
make better frame work of cashew plant. It helps to control growth
and make easy for cultural practices. As an orchard management
technique to improve the sanitation, removal of water shoots,
lower branches, crisscross branches and dry branches are found to
be beneficial to enhance flowering and the yield.
10.Irrigation
In India cashew is grown mainly under rain fed condition.
However protective irrigation especially summer months during
January-March at fortnightly intervals at 200 liters/plant improve
fruit set, fruit retention thereby increasing nut yield.
11.Inter cropping
Intercropping received little attention in the cashew.
Depending on soil &climatic condition and local situation annual
vegetables like tapioca, pulses, turmeric ginger etc, can be grown
as inter crops.
12.Plant Protection
Tea mosquito, stem borer, thrips, leaf minor and leaf
blossom Webber are important pests of cashew. These cause
economical damage in cashew. To control the pest, spry schedule
6
involving 3 sprays synchronizing new flushing, flowering and fruit
setting may be given with the following chemicals:
Quinalphos (25% EC) -0.05%
Carbaryl (50% WP)-0.01%
Phosphamidon (85% WSC)-0.03%
13.Harvesting and Yield
Economic bearing in cashew commences after 3rd year of
planting. The ripened will fall down and nuts from fallen fruits
have to be collected. Nuts can be dried in sun for 2 to 3 days on
cement floor and can be stored in gunny bags. The yield starting
from 1Kg in 3rd -4th year, yield goes on increasing as the canopy
develops and one can expect more that 10Kgs,of nuts in 8 to 10
years old plant depending on management.
7
World Cashew Production
Cashew is produced in almost 32 countries of the world and now it
has become the number one crop in world taking over almonds.
According to estimates from the World Bank, around 97% of world
cashew production comes from wild growth and small farms while the
remaining 3% come from planned plantation. According to updated 2002
data received from the Food & Agriculture Organization (FAO),
Vietnam became the highest volume producer in 2002 with 5,16,000 MT,
followed by India with production of 4,60,000 MT. India, which had
been the world's largest producer up to 2001 with an average yearly
production of 4, 50,000 MT, followed by Nigeria, with 1, 76,500 MT,
and Brazil 1,29,000 MT.
In Ghana, there is an ongoing Government-supported investment
project in cashew production under Ministry of Food and Agriculture
through the cashew development project. This is to boost production and
processing of cashew nuts for the local market and also as a means of
poverty reduction.
Under this project, the Government is providing funds for the
purchase of improved seedlings for selected former co- operatives in 10
Districts located in 5 Regions namely Northern, Upper west, Brong
Ahafo, Volta & Greater Accra. The total area in the world under cashew
cultivation figures up to 35.1 lakh hectares. And the world production
figures of this crop hover around 22.5 lakh tons per year. And the major
raw-cashew producing countries are; Vietnam, India, Brazil, Nigeria,
Indonesia, Tanzania, Cote de Ivoire, Guinea, Mozambique, Benin,
Thailand, Malaysia, Kenya, Ghana. And the major cashew consuming
countries in the world leaded by United States of America are;
8
United States Of America
European Union
India
Cashew Production In India
India has always been a major player in the production of cashew.
The Indian production of cashews contributes to around 4.6 lakh tons per
annum. It is the second largest producer of raw-cashew in the world but
conquers the 1st place among the largest producing countries of cashew
kernels and also in the maximum area covered that figures to the 7.70
lakh hectares currently. The country provides with around 55% supply of
cashew kernels in the world. The major states in India in which cashew
are cultivated are;
Kerala
Karnataka
Goa
Maharashtra
Andrapradesh
Tamilnadu
Orissa
West Bengal
Maharashtra stands 1st among the main cashew producing states in
India followed by Andrapradesh & Orissa. The country also is the 3rd
largest consumer of the food product in the world after United States of
America & European Union as it consumes over 3 million cartons per
annum
9
Major trading centers of cashew
The major trading centers of cashew in India are;
Palasa
Kollam
Mangalore
Quilon
Kochi
INDIA’S TRADE RELATION WITH OTHER COUNTRIES
The climate in the country suited the crop so well that it
spread along in all the direction of the continent. India became the
leader in the cashew production till in 2002, its dominating position
was taken over by Vietnam. The country is still the second largest
country producing raw-cashew nuts. It is also is the largest country
producing cashew kernels, the largest country indulging in the
processing of this food product and the largest exporter of cashews in
the world.
India imports small quantities raw cashew nuts from the
African countries so as to meet the international demand for Indian
processed cashew kernels. Cashew industry is directly connected to
the growth of the economy as India earns a good amount of foreign
exchange by exporting cashews. Cashew ranks second among the
horticultural commodities exported from India. This industry also
gives employment to around 3 lakh people in the country and the
demand for Indian cashews is quite large due to qualitative edge over
other countries. India earns more than 200 million $ a year by
exporting 40 to 50 thousand tons of cashew kernels and the countries
trade links are spread over 40 countries.
10
The major countries that import Indian cashew are;
United States Of America
Netherlands
United Kingdom
United Arab Emirates
Japan
France
Saudi Arabia
Spain
Russia
Germany
Canada
Greece
PRODUCTION DISCRIPTION
The Indian market for cashew nut classified under the code below;
HS080131 Cashew nuts (Fresh or dried, in Shell).
Product name
German Cashewnüsse (Kaschunüsse), Cashewkerne
English Cashew nuts, cashew kernels
French Noix de cajou, Noix d'arabie
Spanish Anacardos
Scientific Anacardium occidentale
CN/HS number 0801 30 ff.
11
Cashew nuts are the stone fruits of the cashew tree, which grows to
a height of up to 12 meter and belongs to the sumach family
(Anacardiaceae).
Cashew nuts are shell fruit (nut types). Because of their similar
characteristics with regard to transport, particularly their high oil content,
their requirements regarding care during storage and transport are the
same as those of oil-bearing seeds/fruits.
Cashew nuts are classed as follows:
1. Cashew apple
The cashew apple, at up to 9 cm in length, is the pear-
`shaped, swollen, soft, shiny yellow or red, fleshy stem of the
cashew nut proper. The cashew apple itself is not suitable for
transport and storage.
2. The cashew nut
12
The cashew nut is a stone fruit, which grows out of the
bottom of the cashew apple, is approx. 2 - 2.5 cm long, kidney-
shaped, yellowish-reddish in color and has a hard shell with a
single kernel with a delicate aroma. It is removed from the cashew
apple after harvesting and sun- or hots air-dried, the shell then
becoming detached to reveal the kernel proper.
3. The cashew kernel
This is surrounded by a fine, brown seed coat, which
contains antioxidants which protect the kernel from penetration by
atmospheric oxygen so preventing it from becoming rancid
(oxidative rancidity). Cashew nuts are also known as Anacardium
nuts.
Countries of origin
This Table shows only a selection of the most important countries of
origin and should not be thought of as exhaustive.
Africa Mozambique, Tanzania, Kenya, Egypt
Asia India, China
America Mexico, West Indies
13
Active behavior
The high oil content of the goods frequently causes dark fat stains
to appear on the bags, which must therefore be kept from coming into
contact with goods sensitive to contamination, such as baled goods, tea
chests, marble etc.
Cashew nuts in bags must not be stowed together with fibers or
fibrous materials, either, since oil-impregnated fibers accelerate self-
heating processes.
Passive behavior
Cashew nuts are sensitive to dust, dirt, fats and oils. The holds or
containers must accordingly be clean and in a thoroughly hygienic
condition before loading.
14
OVERVIEW OF CASHEW FACTORYK. Vishwanath Subraya Kamath founded KVS Kamath &Sons in
the year 1980. Apart from the Mangalore factory, another factory has
been subsequently set up in Munchoor with the name ‘Vignesh Industry’.
Vishwanath Kamath father’s Subraya Kamath was the pioneer in the
cashew processing. Mangalore factory is managed by Jairam Kamath,
who is the youngest son. The overall process at KVS is divided into 3
sections; Cutting, Peeling, and Grading. 100 workers are working in
cutting section, 90 workers are doing peeling work. And there 30
members are doing grading of kernels. All they are given piece rate
wages. 5 supervisors, an accountant, computer operator are working
inside of the KVS.
OBJECTIVES OF KVS CASHEW FACTORY
To extract the healthy, tasty kernels from the raw nuts in the
shell.
To produce shell oil that is CNSL.
To provide employment opportunities.
To utilize best technologies.
Attainment of the target.
Mission
Process the raw nuts to most efficient way.
Add value to the product to reach the retail consumer.
15
Initial Capita
The KVS&SONS cashew factory established in the year 1980 and
the business commenced for Rs-1, 00,000. During the year 1987 and
1993 factory was in loss to their production, now they make profit.
Location &site
KVS&SONS cashew factory was situated at Shakthi Nagar,
Kulashekhara Road, Mangalore.
Product produce
The main product of KVS&SONS factory is the cashew kernels
and by-product obtained are cashew shell liquid and shell cake.
Means of finance
The Factory has been partly financed by Axis Bank and Syndicate
Bank.
Wage System
The factory follows both the piece wage and time wage system. In
the cutting and peeling section piece wage system and in other section
time wage system is adopted.
Working Hours
Factory starts work at 8-30 am & up to 5-30pm. Sunday is a
holiday. Wage paid to workers weekly that is Saturday.
16
Labour Welfare Measure
Dearness Allowance-15.30%
Provident Fund ;
Employers-12%
Employees-12%
ESI:
Employer-4.57%
Employees-1.75%
Capital Inputs
Land and building
The built up area requirement is around 100 sq.mtrs. And to
limit the expenditure and save time, it is advisable to buy a suitable
readymade shed which would cost around Rs.2.50lakh.
Machinery
It is advisable to install rated processing capacity of 75 tons
per shift considering working of around 200-220 days every year.
This would require following equipments.
Miscellaneous Assets
Some other assets like furniture and fixtures, storage racks,
working tables etc. shall be required for which a provision of Rs.40,
000/-is adequate.
Utilities
Total power requirement shall be 30HP Where as water shall
be required for potable and sanitation purposes.
Item Qty Price(Rs.)
17
Oil expeller complete with all accessories, electric
motor& other electrical.
1 2,00,000
Filter press with plunger pump, electric motor
accessories
1 50,000
MS Storage Tanks 2 20,000
Weighing scales, Laboratory equipments etc … 30,000
Total 3,00,000
ORGANISATION STRUCTURE
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MANAGING DIRECTOR
MANAGER
CUTTING DEPARTMENT
SUPERVISOR
FINANCE DEPARTMENT
PEELING DEPARTMENT
GRADING DEPARTMENT
Cutter
SUPERVISOR SUPERVISOR ACCOUNTANT
Cutter Grader Grader Peeler Peeler
INTRODUCTION
Among all functional areas of management, production is
considered to be critical in any industrial organization. Production is the
process by which raw-materials and other inputs are converted into
finished products and output. So production includes creation of both
tangible goods as well as intangible services. The application of
management principles to the production process or functions in a factory
is called the production management. And the factory is a place where
the factors of production such as land, Labour, money& enterprise are
grouped together for the creation of goods and services.
PRODUCTION IN KVS FACTORY
The main products of KVS&SONS factory is the cashew kernels
and by-product shell oil.
The cashew nuts can be consumed as roasted and salted, or used an
ingredient in confectionery and bakery products such as sweets, ice
creams, cakes, and chocolates.
The raw-cashew nut shell contains around 20% oil. When cashew
nuts are processed by oil extraction process, about 50% oil is extracted.
Balance oil or liquid is known as CNSL.
RAW-MATERIAL
The only raw-material used for the production is the raw cashew
nuts from the local & foreign markets. Purchasing period is from
February to March in local markets. It also collects raw nuts by
importing from Indonesia, Benin, Ivoire.
19
MACHINES NEEDED FOR PROCESSING
The important machines needed for cashew processing are;
Bruioir Roaster:
Fitted with an electrical heater, it also has a space for a kerosene burner.
The rotary drum with cross blades gives uniformity and a quick discharge
of materials into the cooling tray. The automatic stirrer moves and
discharges the roasted material to the final storage tank. The colour
changes can be seen through a viewfinder. Requires between 0.5 and 1.5
HP. Depending on the model.
Sheller
A small tool for bench use with a specially shaped blade set. The
complete nut is placed on the lower blade and when the spring- loaded
handle is depressed, the upper blade is pushed down into the shell. The
handle can then be pushed sideways to exert a twisting motion on the
shell and thus open it.
Dryers
Drier is essential to avoid under drying or scorching. The shelled kernels
are dryed properly with the help of dryers, before the peeling process.
Peeler
The machine used for peel the testa which is attached to the kernels.
Trolley
Usually materials are handled by man itself. In certain sections
trolleys are used for moving the materials.
20
CASHEW NUT PROCESSING
The objective of cashew processing is to extract the healthy, tasty
kernel from the raw nuts in the shell. Most modern factories are
designed to obtain the maximum number of whole nuts and as much
shell oil as possible.
The cashew fruit is unusual in comparison with other tree
nuts since it is outside the fruit. The cashew apple is an edible fruit,
attached to the externally born nut by a stem. In Brazil, the apple is
used to manufacture jams, and soft and alcoholic drinks. In Goa it is
used to distil cashew liquor called “feni”. In its raw state, the shell of
the nut is leathery, not brittle. It contains the thick vesicant oil, CNSL,
with in a sponge-like interior. A thin testa skin surrounds the kernel
and keeps it separated from the inside of the shell. The primary
products of cashew nuts are the kernels which have value as
confectionery nuts. Cashew nut shell liquid (CNSL) is an important
industrial raw material for resin manufacture and the shells can be
burned to provide heat for the decorticating operation.
21
Traditionally, extraction of the kernel from the shell of the cashew
nut has been a manual operation. The nut is roasted which makes the
shell brittle and loosens the kernel from the inside of the shell. By
soaking the nuts in water, the moisture content of the kernel is raised,
reducing the risk of it being scorched during roasting and making it more
flexible so it is less likely to crack. The CNSL is released when the nuts
are roasted. Its value makes collection in sufficient quantities
economically advantages. However, for very small-scale processors, this
stage unlikely to take place due to the high cost of the special roasting
equipment required for the CNSL collection .If the nuts are being
manually shelled, gloves need to be used or alternatively, the nuts should
be tumbled in sawdust or ashes to absorb the liquid coating which has a
harmful affect on the skin.
The shell can be cracked either manually, using a hammer, or
mechanically. Manually operated blade openers are relatively
inexpensive; however the more successful mechanical methods
depend on the nuts having passed through the ‘Hot oil’ CNSL
22
extraction operation. Care must be taken not to break or split the
kernel at this or subsequent stages as whole kernels are more valuable
than broken ones. Once the kernel is removed from the shell, it is
dried, the testa is peeled off and the kernel is graded. Thus the cashew
nut processing can be sub divided into a series of steps.
1.Cleaning
All raw nuts carry foreign matter, consisting of sand, stones,
dried apple etc. The presence of foreign matter in the roasting
operation can be avoided by cleaning the nuts. The raw nuts can be
sieved by hand using 3/4inch mesh sieve.
2. Soaking
The next stage is to soak the nuts in water to avoid scorching
them during the roasting operation. This can be done by placing the
nuts in a 40-45 gallon drum or vat and filling it with water until all the
nuts are covered. After being left to stand for about ten minutes, the
water should be drained off via a plug near the base of the drum. The
nuts should then be left for periods of not less than four hours in order
to allow the water left on the surface of the nuts to be absorbed. The
process of covering the nuts with water, draining and standing should
be repeated with the same nuts about three times until a moisture
content of 9% is reached.
Where the production output runs from 2-10 tones of nuts per
day, a simple cleaning and conditioning arrangement can be used.
Two people open the sacks of harvested nuts on stand and clean the
raw nuts as they are moved along a flat sieve, to two vats which are
used for storage until the soaking process begins. Two vats are useful
because one can be emptied while the other is being filled.
23
3. Roasting
The simplest roasting method is to heat the nuts for about a
minute in an open pan with holes. Acid fumes are released and if the
nuts should catch fire the flames can be doused with water. A more
efficient method is to use a slanting perforated cylinder that is rotated
above a fire. The shell oil flows through the holes in the cylinder and
is collected in a catch through. After the roasting process the nuts are
dumped into ash or sawdust to remove the excess shell oil still
clinging to the shells.
The application of heat to the nut releases the nut shell liquid
and makes the shell brittle which facilitates the extraction of the
kernel when breaking the shell open. Three methods of roasting exist:
open pan, drum roasting and the ‘Hot oil’ method. The latter is more
suitable to medium-scale operations with associated higher equipment
costs and viability of CNSL collection.
Open pan:
An open, mild steel, circular dished pan of around 2 feet in
diameter is supported on a basic earth fireplace. When heated, 2-3lbs
(1 Kg)of nuts are placed on the pan at one time and stirred constantly.
The CNSL starts to exude and then ignites. This produces a long
flame and black smoke. After approximately two minutes, the pan is
dowsed and the charred, swollen and brittle nuts are thrown out of the
pan. The moisture evaporates quickly leaving the nuts ready for
shelling.
Drum Roasting:
The idea of continually feeding the nuts into a rotating drum over a
fire developed from the pan method. A slight horizontal slope in the
24
mounting ensures movement of the nuts through the drum. The drum is
pierced so that the flames touch the nuts and the smoke is controlled by
a hood and chimney arrangement. The nuts are dowsed using a
continuous spray. This process was further modified by using the heat
from the burning CNSL being harnessed to roast the nuts some more.
The roaster consists of a contained helical screw which moves the
burning nuts at a controlled rate. The design was a distinct
improvement, with little fuel being consumed and there being greater
control on the roasting time.
‘Hot Oil’ Method:
The principle employed in this method is that oil-bearing
substances i.e., the shells, when immersed in the same oil at high
temperature, will lose their oil, thus increasing the volume of the
oil in the tank. For this method, conditioning becomes important.
The equipment consists of a tank of CNSL heated to a temperature
of 185-190˙C by a furnace underneath and a wire basket used to
25
hold the nuts for immersion into the tank. The depth of basket must
be sufficient so that the rim remains well above the oil during the
roasting. Immersion time can range from 1 ½ to 4 minutes. About
50% of the liquid is extracted from the nuts. Draining trays are
needed at the end of the tank for the roasted nut
4. Shelling
The objective of shelling is to produce clean, whole kernels free
of cracks. In India, this operation has been done manually. Other
countries have difficulty in competing with the great skill and the low
wages of the Indian
This is the most difficult operation in cashew processing. In India
shelling is mostly done by cheap female labour. Shelling is carried out
by using special wooden mallets and pieces of bent wire, at a rate of
about 200 nuts per hour.
Manual Shelling Method
In the manual shelling process, the nuts are placed on a flat
stone and cracked with a wooden mallet. As mentioned above,
because of the residue CNSL, wood ashes for covering the shells or
gloves are required. An average sheller can open one nut in about six
seconds or ten nuts per minute. In an eight-hour working day, this
amounts to about 4,800 nuts or about 5kg of kernels. At an extraction
rate of 24%, this quantity corresponds with about 21kg of raw nuts per
day or about 7 tons per year. However, experienced shellers in India
can produce around half as much again, with a quality of 90% whole
kernels.
26
Mechanical Shelling Method
Mechanical shelling methods are difficult to design because of the
irregular shape of the nut, hardness of the shell and brittleness of the
kernel. In some mechanical processing plants compressed air is used to
crack the nuts. The latest Windmer and Ernst method is to cut a groove
around the shell and to place the shell in a modified centrifuge fitted with
mental plates. The nuts are thrown against the plates and cracked by
centrifuge forces when the machine spins. It is possible to obtain 85%
whole kernels with this method.
Removal of the testa:
Before the thin, papery seed coat (testa) can be removed, the kernel
must be dried. Nuts are dried on big racks in an over at 70˙C.The testa
becomes dry and brittle and is easily removed. The remaining traces of
membrane are removed with bamboo knives. Modern factories use
electronic machines to detect nuts with pieces of remaining testa which
are then sorted and cleaned by hand.
The most successful mechanical shellers work on a nut which have
previously passed through the ‘hot oil’ process and is detailed under the
paragraph ‘centrifugal shellers’.
A semi-mechanised process that has been used predominantly in
Brazil uses a pair of knives, each shaped in the contour of half a nut.
27
When the knives come together by means of a foot operated lever, they
cut through the shell all around the nut, leaving the kernel untouched.
Two people work at each table; the first cuts the nuts and the second
person opens them and separates the kernel from the shell. Daily
production is about 15kg of kernels per team.
The first mechanised shelling system, Oltremare, is also based on
two nut-shaped knives. The nuts are brought to the knives on a chain,
each nut in the same position to fit between the knives. The nuts are
pushed between the knives and cut. The chain itself has to be fed
manually. After coming together, the knives make a twisting movement,
thus separating the shell halves. The disadvantages of this method are
that nuts smaller than 18mm cannot be processed and output is reduced
because not all the spaces on the chain can be filled which can count for
as much as 10% of the production volume.
The shelling machines of the Cashco system are also chain fed but
the nuts are automatically placed in the right position. The shelling
device has two knives that cut the sides of the nut and a pin that is
wedged into the stalk end of the nut separates the shell halves. The
advantage of this system is a fully mechanised operation with an output
of about 75% whole kernel qualities. Nuts smaller than 15mm cannot be
processed.
Centrifugal shellers use a system which is simple and enables a
continuous flow. A rotary paddle projects the shells against the solid
casing and the impact cracks open the shell without breaking the kernel.
All sizes of nuts can be processed by this method; however, it is
necessary to grade the nuts into four or so group ranges because a
different rotary speed is used for the various size groups. The percentage
of whole kernels produced is around 75%. By preparing the shells with
grooves and weakening the strength of them before the operation begins,
28
the percentage can be increased. The speed of the rotor can thus be
turned down and the risk of damaging the kernels is reduced.
Separation
After shelling, shell pieces and kernels are separated and the
unshelled nuts are returned to the shelling operation. Usually blowers
and shakers are used to separate the lighter shell Pieces from the kernels.
The greatest problem is to recover small pieces of kernel sticking to the
shell. This is usually done manually from a conveyor belt used to carry
all the sorted semi-shelled nuts.
Pre-grading
Pre-grading can be done before or after drying the kernels and may
greatly reduces the final grading work. For large-scale processors pre-
grading can be done mechanically, separating mainly the whole from the
broken kernels and sometimes separating the different size groups of
whole kernels.
5. Drying
Harvested nuts are dried in the sun for a few days. Properly dried
nuts can be stored for 2 years before being shelled. Nuts are roasted to
discharge the caustic shell oil and acrid fumes. Hand shelling is
impossible if the shell oil has not been removed previous. Kernel must be
protected from contamination by the shell oil has because it would cause
blisters in the mouth and throat when eaten. Before the nuts are roasted
they must be soaked in water-the moisture in the shell facilitates the
rupturing of the cells containing shell oil and retaining it in the shell.
Moisture makes the kernel slightly rubbery and limits breakage of the
29
kernels. The easiest method to wet the shells is to heap the nuts into big
piles and to use sprinklers intermittently. Steam may also be used.
The shelled kernel is covered with the testa and to facilitate
removal, i.e. to peel in order to produce the blanched kernel, the shelled
kernel is dried. This also protects the kernel from pest and fungus attack
at this vulnerable stage. The moisture content is approximately 6%
before drying and 3% after. It is important that the drying capacity is
higher than the shelling capacity in case of periods of heavy rainfall
because the drying operation will be lengthened since the kernels will
absorb the moisture very quickly. Sun drying, where the kernels are
spread out in thin layers under strong sunshine is possible; however
artificial drying becomes necessary for medium or larger-scale producers.
Drying usually takes six hours, at a temperature of around 70C. A
uniform temperature throughout the drier is essential to avoid under
drying or scorching. And 6 shows an ITDG tray dryer, details of which
are available on request. It is in the dried condition the kernels are most
vulnerable, being both brittle and susceptible to insect infestation.
Therefore, at this stage, they must be handled with care and moved to the
next stage of peeling as quickly as possible.
6. Peeling
At this stage, the testa is loosely attached to the kernel, although a
small amount of kernels may have already lost the testa during the
previous operations. Manual peeling is done by gentle rubbing with the
fingers. Those parts still attached to the kernel are removed by the use of
a bamboo knife. One person can peel about 10-12kg of kernels per day.
30
The mechanised processes of peeling differ widely. They include
air-blasting, suction, a freezing operation and a system of rubber rollers.
The operation has a low efficiency due to the difficulty of removing the
testa and the amount of breakages can be as high as 30%. Currently
research and development is taking place to improve the viability of the
mechanization of this operation.
7.Grading
The grading operation is important as it is the last opportunity for
quality control on the kernels. With the exception of a few grading aids,
all grading is done by hand. Power driven rotary sieves are one
mechanical method, another being two outwardly rotating rubber rollers
aligned at a diverging angle. For a large operations looking towards
export markets, it is necessary to grade the kernels to an international
level. Kernels, whole and broken, are sorted into 6 grading schedules.
There is only a demand for broken or dark and unevenly roasted kernels.
31
Rehumidification
Before the kernels are packed it is necessary to ensure that their
moisture content rises from 3% up to around 5%. This is to make the
kernels less fragile, thus lessening the risk of breakage during transport.
In humid climates, the kernels may absorb enough moisture during
peeling and grading to make a further Rehumidification process
unnecessary. Packing
8. Packing
MS barrels shall be required for packing, for which prior
arrangements need to be made. Jute/PP(Poly- Propylene) woven bags of
50/25Kg used as export standard, bearing the following labeling
requirements:
Name of the product
Country of origin
Name of importer
Net weight
32
PROCESSING OVERVIEW
33
CASHEWNUT SHELL LIQUID
INTRODUCTION
Cashew nut Shell Liquid (CNSL) is a honey comb structure
containing dark reddish brown viscose liquid. It is a by-product of the
cashew industry which is the pericrap fluid of the nut. It is considered to
be better as well as cheaper material for unsaturated phenols. It is
exported to countries like Japan and Korea and its domestic use is also
increasing. Konkan region of Maharashtra could be an ideal location as
there are many manuals and few mechanized cashew processing factories
in the region. Likewise, there are several processing factories in adjoining
Goa state as well. Kerala can also be an ideal location.
MANUFACTURING PROCESS
The process is well-established as extraction of oil by expeller
process is practiced since long. Cashew shells are fed to the expeller to
extract remaining oil. Oil thus obtained, is filtered with the help of a filter
press and then weighed and packed in MS barrels. Recovery of oil is
around 20%. This is known as untreated CNSL. Its colour should be dark
reddish brown when viewed by transmitted light. This oil can further
treated to remove metallic impurities and trace of sulphur compounds.
Specification for Cold Pressure Cashew nut Shell Liquid
Cashew nut shell liquid is also produced by the 'Cold Pressed'
method in solvent extraction plant. Cashew nut Shell Liquid is a by-
product of the cashew industry. The nut has a shell of about 0.1 inch
thickness inside which is a soft honeycomb structure containing a dark
reddish brown viscous liquid. It is called the cashew nut shell liquid,
34
which is the pericrap fluid of the cashew nut. Cashew nut shell liquid is a
natural product that is used as raw material for the synthesis of wide
variety of polymers and water resistant resins. We have carved a niche as
one of the most distinguished natural cashew nut shell liquid suppliers in
India. In addition to this, the natural cashew nut shell liquid supplied by
us finds numerous applications in the industries like automobile, paint
and so on and so forth.
Specification for Treated Cashew nut Shell Liquid
The cashew nut shell liquid as extracted has a strong vesicant
dermatatic action. Before this liquid is utilized for preparation of resins, it
requires treatment to get rid of metallic impurities as well as traces of
sulphur compounds. The liquid thus treated is known as “Treated Cashew
nut Shell Liquid ".
CHEMICAL STRUCTURE C.N.S.L
Cashew nut shell liquid or CNSL or Cashew Nut Oil or Cashew
Shell Oil or CNSL Oil is a versatile by product of the Cashew industry.
The nut has a shell of about 1/8 inch thickness inside which is a soft
honey comb structure containing a dark reddish brown viscous liquid. It
is called CASHEW NUT SHELL LIQUID or CNSL. This is the pericrap
fluid of the Cashew Nut. It is often considered as the better and cheaper
material for unsaturated phenols.
CNSL has innumerable applications, such as friction linings,
paints, laminating resins, rubber compounding resins, cashew cements,
polyurethane based polymers, surfactants, epoxy resins, foundry
chemicals, and intermediates for chemical industry. It offers much scope
and varied opportunities for the development of other tailor-made
polymers.
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Cashew Nut Shell Liquid has innumerable applications in polymer
based industries such as friction linings, paints and varnishes, laminating
resins, rubber compounding resins, cashew cements, polyurethane based
polymers, surfactants, epoxy resins, foundry chemicals and intermediates
for chemical industry. It offers much scope and varied opportunities for
the development of other tailor - made polymers. There are more than
200 patents on CNSL for its industrial applications.
CNSL undergoes all the conventional reactions of phenols, CNSL
aldehyde condensation products and CNSL based phenolic Resins are
used in applications such as surface coatings, adhesives. Various
polyamines synthesised from CNSL are used s curing agents for epoxy
resins. CNSL and its derivatives have been used as antioxidants,
plasticizers and processing aids for rubber compounds, modifiers for
plastic materials and used to provide oxidative resistance sulphur-cured
natural rubber products. It is also added to rubber gum stock or nit
36
riles rubber to improve the processability, mechanical properties and
resistance to crack and cut properties of the vulcanisates.
A number of products based on CNSL are used as antioxidants,
stabilisers and demulsifies for petroleum products. Soluble metal
derivatives of C.N.S.L are used to improve the resistance to oxidation
and sludge formation of Lubricating oils. Oxidised CNSL and its
derivatives are also used as demulsifying agents for water in oil type
petroleum emulsions.
CNSL or CASHEW NUT SHELL LIQUID OIL used for
manufacturing of CNSL Resin, Cardanol or Card Phenol or Cashew
Phenol, Cashew Friction Dust, Anti corrosive hiring (lining) chemicals,
Paints, Varnishes, Enamels, Insecticides and Fungicides,
Cashew Lacquers, Bakelite, Electrical conductress, Cashew Cements,
Core Oil, Red Oxide, Wood, Fuel, Specialty Chemicals, Foundry
Chemicals and many other
Industries.
37
Cashew Nut Shell Liquid, Specifications :
Specific Gravity 300 C : 0.950 - 0.970
Viscosity 300 C in centipoises : 250 max. (Last tested 160)
Moisture by weight : 1.0
Matter insoluble in toluene weight :1.0
Loss in weight on heating : 2
Ash % by weight : 1.0
Iodine Value : (min.)
a) Wij’s Method : 250
b) Catalytic method : 375
Polymerization:
a) Time in Minutes : 4
We Offer good quality Cashew Nut Shell Liquid, Packing in 200
kg Drums/Barrels or Bulk Tank.
Only Serious Buyers, who wish to purchase Superior Quality, are
requested to contact us.
38
ADVANTAGES
Advantages of CNSL based Polymers
Improved Flexibility and reduced brittleness.
Solubility in Organic Solvents.
Improved Processability.
Low Fade Characteristics for Friction.
Resistance to 'Cold Wear'.
Good Electrical Resistance.
Better Water Repellence.
Improved alkali and acid resistance.
Compatibility with other polymers.
Antimicrobial Property.
Termite and Insect Resistance.
Structural Features for Transformation into High Performance Polymers.
Polymerisation Characteristics of CNS
CNSL can be polymerized by a variety of methods :
Addition Polymerisation through the side chain double bonds
using cationic initiators such as sulphuric acid, diethylsulphate etc.
Condensation Polymerisation through the phenolic ring with
aldehydic compounds.
Polymerisation after Chemical Modification to introduce speciality
properties.
Oxidative Polymerisation.
Various Combinations of the above.
39
Industrial Significance of CNSL
Low Cost Phenol.
Versatility in Polymerisation and Chemical Modification.
Possibilities for Development of High Performance Polymers.
Property advantage over phenolics in certain applications such as
impact resistance, flexibility, faster heat dissipation etc.
CASHEW NUT SHELL CAKE
Empowered with robust infrastructural base and qualified team, we
bring forth an ample assortment of high quality cashew nut shell cake.
We are well reckoned as one of the supreme De-Oiled cashew shell cake
exporters and manufacturers in the national and international market.
Crushed cashew nut shell cake provided by us is highly acclaimed for
quality and performance.
Widely used by tile manufacturing, cashew and many more industries,
our cashew nut shell cake is the perfect blend of long lasting shelf life
with efficiency. We deliver crushed cashew nut shell cake within the
stipulated time frame and that too at very reasonable price.
40
It is one of the best fuels. It is mainly used by cashew industries,
tile manufacturing units and others. The chemical analysis of the cashew
shell oil cake is as follows
The Cardanol Resin Plants offered by us is based on cashew nut
shell liquid. These Cardanol Resin Plants are used in the processing of
alkyd and Cardanol in 5 TPD and 1500 TPA capacity. These plants are
manufactured in conformation to the international standards and are
known for easy installation, high capacity, durability and outstanding
quality.
Specifications:
Resins CAPACITY
TPD TPA
ALKYD Resin From CNSL 5 1500
Cardanol From CNSL 5 1500
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INRODUCTION
Market is place where goods are bought and sold. But today
market means anybody of people who are in intimate business relation
and carry on extensive transactions in any commodity.
Marketing is concerned with the flow of goods from the point of
consumption. It means distribution of goods from the producer to final
consumers. And it does not mean mere transfer of goods from seller to
buyers. Thus it is an all activities involved in the creation of place, time,
possession, knowledge and utility.
MARKETING OF CASHEW NUTS
Marketing of raw cashew nut in India has not yet been organized in
systematic manner except in Goa where co-operative marketing society is
procuring raw nuts to the little desired extent. A major portion of the
produce is brought by itinerant merchants and the agents of the
processing units. A number of wholesale merchants and processing
factories open their collecting centers in important cashew producing
areas during the harvesting period. The petty dealers who buy the nuts
from the growers also dispose the nuts in these collecting centers.
Cashew nuts are brought for sale to the assembling markets largely by the
itinerant merchants. In certain areas, the most resourceful processors
contact the producers thus avoiding the commission agent’s role and
enjoy good bargaining power by providing credit facilities to the
producers.
42
CHARACTERISTICS OF MARKETING
It is surrounded by needs of consumer.
It is business and business is marketing.
It focuses on goods, services, and needs.
It focuses on the delivery of value to the others.
It deals with products, distribution, promotion and pricing.
MARKETING CHARACTERISTICS OF CASHEW NUT
The food processing industry is the major traditional consumer
of cashew nuts in confectionery and bakery products such as
sweets, ice creams, cakes, and chocolates.
The most popular cashew nuts imported are white whole
kernels of count 320.
Nuts are usually roasted and salted by European processors in
order to meet the taste requirements of individual markets.
Between 1999-2003 both in import trend in value and quantity
for Indian imports have increased by 4% and 18% respectively.
Recognized buying agents do the networking and aggregate
nuts from producers for the exporters on contract bases.
The exporters in most cases provide funds in advance for the
purchases on agreed terms. These transactions are however
based on mutual trust between the exporter and the agent.
Average minimum prices are determined by exporters after
negotiation with principals of importing companies based on
world market prices at the beginning of the season.
India is the major importer of Ghanaian cashew nuts though
Vietnam and Hong Kong have also recorded small volumes.
No import duty is levied on cashew nuts to the EU. However,
India applies 35% levy on imported cashew nuts.
43
FUNCTIONS OF MARKETING
A marketing function may be defined as “An act or operation or
service by which original producer and final consumers are linked”. In
other words concentration, dispersion and equalization are collectively
known as marketing functions. The scope of marketing can be shown as
follows:
MARKETING FUNCTION
I. FUNCTION OF EXCHANGE
The process of movement of goods from producer to consumer is
called exchange. The important functions of exchange are;
1. BUYING
It is the first function of marketing. It is concerned with
procurement of raw-materials by manufacturer and final goods by
wholesaler& retailers.
44
FUNCTION OF PHYSICAL SUPPLY
FUNCTION OF EXCHANGE
FACILITATING FUNCTION
BUYINGASSEMBLINGSELLING
PACKAGINGSTORAGETRANSPORTATION
FINANCERISK BEARINGSTANDERDISATIONGRADINGPRICINGADVERTISINGSALES PROMOTION
KVS factory collects raw- cashew nuts from the local as well as
from foreign markets. The factory makes import from Indonesia,
Benin, Ivoire.
2. ASSEMBLING
It is concerned with collecting and concentrating goods of the
same type from the different sources or it is the process of collecting
raw-material from various sources to a common point as a part of the
production process.
3. SELLING
It is concerned with transfer of goods from producer to traders
and from traders to consumers. Under this function ownership of
goods is transferred from the seller to the buyer. The selling is a part
of marketing and seller directly interacts with the customer. It is at
this point that marketing action takes place.
KVS products are marketed at Bombay, Delhi, Ahmadabad, and
Hyderabad, Bangalore in domestic and exported to Gulf, USA, Japan,
and Singapore UK etc.
II. FUNCTION OF PHYSICAL SUPPLY
1. PACKAGING
In simply it is the process of wrapping the products in order to
protect goods from damages. Packaging is traditionally done to
protect the goods from damage in transit and to facilitate easy transfer
of goods to customers. But now it is also used by the manufacturer to
establish his brand image as distinct from those of his rivals.
Another activity connected with packaging is LABELLING. It is
putting identification marks on the package. Label is an important
45
feature of a product. The label is used to communicate brand, grade
and other information about the product. The major labeling
requirements:
Name of the product
Country of origin
Name of importer
Net weight
CASHEWNUT PACKING
The normal packaging for export of kernels is in air-tight tins of 25
lbs in weight. The packing needs to be impermeable as cashew kernels
are subject to rancidity and go stale very quickly. The tin will be familiar
to most tropical countries as it is a replica of the four gallon kerosene or
paraffin oil tin. If possible the tins are made locally as movement of an
empty tin overseas is expensive. Alternatively, it might be arranged to
purchase components and finish the manufacturing locally. This may be
done by arrangement with tin manufacturers. The output of a tin
manufacturing line is usually too large for one consumer but some
cashew nut other processors have in fact installed their own tin making
plant and supply other processors.
After filling and weighing, the cap should be soldered on in
preparation for the ‘vita pack’ process. This consists of removing all air
from the tin and substituting this with carbon dioxide (CO2).The
advantages of packing cashew kernels in carbon dioxide are twofold.
Firstly, carbon dioxide is an inert gas and will not support life. Any
infestation that may have been present is, therefore, arrested. Secondly,
carbon dioxide is soluble in cashew oil and goes into solution as soon as
the seals are made. In a short space of time, it can be seen that a decrease
46
in pressure takes place as the carbon dioxide goes into solution and the
sides, top and bottom are drawn inwards. Thus the kernels are held tight
in the tin, preventing movement and breakage during transport. Carbon
dioxide, being a heavy gas causes the upward displacement of air and
will remain in the tins after the filling process. Some large-scale
machines will operate on six tins at a time, creating a vacuum in each and
then filling with carbon dioxide.
The Some processors do not have vacuum pumps and displace the
air in the tin by feeding in carbon dioxide through a small hole in the
bottom of a side of the tin. The carbon dioxide valve is turned off when
all the air has been replaced. The holes in the tin are then sealed, with the
hole at the bottom of the side of the tin being done first, and the one on
the top last.
Secondary Packaging
A packaging solution is incomplete without some means of
decorating your product, protecting it and supplying important
information. We offer machines for Labeling, Cartoning, Coding, etc, to
complete the job.
47
Inspection Systems
To keep your consumer happy and safe, packages have to be
contaminant free. Metal Detectors, X-Ray systems and Vision systems do
the job admirably. Check Weighers verify contents and if required can
provide real-time feedback to filling equipment for weight correction.
Product Handling and End of Line Packaging
Many a time, packaging line efficiencies are low due to poorly-
designed product handling systems. At Clear pack we give special
attention to product handling system design. We have different types of
case packers, including bottom load, end/side load, top load and wrap
around, with various speeds from low to high (up to 100+ cases per
minute). Low-end, semi-automatic case packers are also available. We
also have a full range of case palletisers, including robotic arm, low level,
and high level and Gantry type. Speeds range from low speed to high
speed (Up to 200 cases per min).
2. STORAGE AND WAREHOUSE
Storage refers to holding goods for the purpose of preserving them
through out the year. Goods must be stored properly in warehouses to
protect them from any damage which may be caused by ants, rats,
moisture, sun, theft, etc, till they are sold out.
3. TRANSPORTATION
It is the physical movement of goods from the point of origin to the
point of consumption. It helps manufacturers to get raw-materials to
factories and products to market.
48
Cashew nut delivery made through the shipment. Shipment should
take place as early as possible after drying with in a maximum period of
90 days to avoid deterioration and spoilage of the raw-nuts.
Regular shipping facilities are available from India to all ports of
the world, the front runner in carrying out shipment being the Cochin
port. The other contributing ports are Tuticorin, Mangalore, Madras, and
Bombay. Regular services of container ships are available from Indian
ports on India-USA, India-Japan, India-Australia, India-Singapore.
In order to ensure safe transport, the bags must be stowed and
secured in the means of transport in such a manner that they cannot slip
or shift during transport. Attention must also be paid to stowage patterns
which may be required as a result of special considerations.
III. FACILITATING FUNCTION
Facilitating functions are those activities for supporting
the smooth flow of goods from the point of production to the
point of consumption. The important supporting functions are;
1. FINANCE
It is the money or credit required for starting and running of
business. Marketing requires different kinds of finance such as
short term, medium term & long term finance. Generally banks &
financial institution provide necessary finance required by
marketing organization.
KVS factory has been partly financed by Axis Bank Syndicate
Bank.
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2. RISK BEARING
Risk may be defined as uncertainty with regard to cost loss
or damage. In other words it is the possibility of loss due to
unfavorable happenings in the future. There may be loss of goods
due to fire, theft, flood, earthquake, accidents etc.
KVS factory faces risks such as war, political instability etc
while exporting their products.
INSURANCE
Insurance provides protection against various risks. They
can cover the risks on payment of a nominal premium and recover
the loss, if any, arising out of the risks.
KVS followed with ECGC insurance.
3. STANDARDISATION
The setting up of standards or specifications of a product
and maintaining these standards are known as standardization.
Standardization is the basis of grading. It facilitates trading, as the
parties know the product standards. Standardization of goods helps
sale of goods by convincing the customers about the quality of the
goods. Moreover, standardized goods fetch higher price from the
customers who are quality conscious.
REGULATION, STANDARD AND QUALITY OF CASHEW
Qualities are that characteristics which distinguish one article from
another or the goods of one manufacturer from those of his competitors,
or one grade of product from another, when both are turned by some
factory.
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The quality of cashew kernels depends on the quality of raw nuts.
The following are the various factors which the exporters should consider
throughout the process from harvesting to shipment to ensure the quality
of their raw cashews:
The nuts should be harvested only after they have fallen to
the ground.
The nuts should be sun-dried immediately after harvesting.
During the drying process (which normally lasts two to three
days), the nut density should not exceed 20Kg per square
metre.
The nuts should be turned over regularly to ensure uniform
drying until the kernels rattle in the shell.
When dry, the nuts should be stored in dry jute or sisal bags
in well-ventilated dry rooms.
Shipment should take place as early as possible after drying
within a maximum period of 90 days to avoid deterioration
and spoilage of the raw nuts.
QUALITY SPECIFICATION FOR CASHEW NUTS
PARAMETERS VALUE
OUT TURN 44-52lb/80Kg
NUT COUNT 160-240
MOISTURE 9%
FOREIGN MATTER 0.25%
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Where Out turn means weight of kernel recoverable from raw
nuts measured in pounds (lb) per kilo bag.
Nut count means number of nuts in a kg measure.
Quantity: Minimum requirement should be One 20ft Full
Container Load (FCL).
4. GRADING
Grading means division of products into different grades or classes
made up of units possessing similar features as regards size, weight
and quality.
Grading is done in accordance with the specifications set up by the
standards.
Cashew Kernels are graded into white/scorched Wholes, pieces
splits, butts etc., depending on the Shape, size and colour of the
kernel. The Government of India Act prescribes 33 different grades of
cashew kernels. Only 26 grades are commercially available and
exported. Cashew nut-splits W - 180, are the ' King of Cashew ' -
They are larger in size and very expensive. W - 210, is popularly
known as 'Jumbo' nuts. W - 240, it is an attractive grade which is
reasonably priced. W - 320, are the most popular among cashew
kernels and highest in terms of availability, world wide W - 450, are
the smallest and cheapest white whole kernels and hence the favorite
among low priced whole grades.
Cashew Nut Kernels is processed from Raw Cashew. Cashew
Kernel intact from the shell and grading them carefully to
superior standards required by top food companies all over the world.
The un-shelled nut is steamed to soften the shell and carefully cut open.
The kernel is dried to loosen the skin which is then peeled off. Whole
52
kernels are graded by size and color. Pieces are chopped into required
sizes. After final QC including metal detection, they are packed in
vacuum for freshness.
Following grades of CASHEW NUT KERNELS are normally
available for Local and Export.
Grades W320, W240, LWP, W450, Splits, K, SP, SWP, BB.
For Local supply Tin Packs of 10 kg or 11.34 kg each is available.
We can also Export Small Quantities of Cashew Nuts as a Trial
Shipment to test the Quality of Cashew nut, starting with 1,000 kg by
Air or by Courier Export or by Sea Freight for the importers/Buyers
who really want to place Full Container Order later onwards.
53
5. PRICING
Price of a product is influenced by the cost of production and
services offered, profit margin desired, prices fixed by rival firms and
Government policy. A sound pricing policy is an important factor for
selling the products to the customers. The pricing policy of a firm
should be such that it attracts all types of customers of different
means.
Price means the exchange value of products in terms of money.
Pricing means fixing a reasonable money value to the product on the
basis of quality, quantity, package, colour etc. Price fixation is
primarily based on four conditions such as;
Pricing to attain organizational objective.
Pricing to cover the cost of the product
Pricing to meet competition in the market
Pricing in order to capture customer demand.
PRICING OF CASHEW
Market prices have been good (at $637 US dollar per ton in 2003)
and have been increasing steadily. Currently the price ranges from $650
to $700 according to the Public Ledger.
Pricing strategy is based on the world market pricing which is
ultimately determined by demand, competitiveness and available market
information. It has been established that prevailing prices at any given
time depend on the origin of the product. During 1980-1990s period,
prices were good for Indian cashew nut, which selling price was between
US $1,188 and 1,012 per metric ton/FOB.
54
ORDER PROCESSING
It is the manner in which customers order are procured or processed
is a factor which determines the extend of service available to them.
Order processing takes the following steps;
Receipt of order by the salesman.
Transmission by the salesmen to the firm.
Entry of the order into the firm's books.
Checking the customer’s profile.
Inventory and production scheduling.
Invoicing and shipment.
Receipt of payment.
The speed with which the processing takes place determines the
quality of customer service.
ORDER PROCESSING FOR CASHEW
Usually orders are placed after acceptance of samples and on
agreed mutual terms. Cashew nuts are traded on FOB or CIF basis
subject to agreement between parties. Payment is usually cash against
document but the letters of credit (L/C), confirmed and irrevocable, are
used with certain origins. To create goodwill, new suppliers are advised
to offer advantageous terms such as payment on arrival and after
inspection or drawing a certain percentages against the L/C, the rest to be
paid after inspection.
PRICES IN INDIA
Crisis in the industrial sector in Vietnam and Brazil, main
competitors of India in the cashew-nut market has resulted in its price
reaching a high of USD 3.60 per pound in global markets as against USD
55
1.90 per pound about six months back. This has been the main reason for
India, the biggest cashew producer in the world, getting a record price,
Cashew Export Promotion Council Chairman, P Bharatan Pillai said.
India exports cashew-nut primarily to USA, Europe, Japan and
Australia. Demand for Indian cashew-nut increased as both Vietnam and
Brazil failed to meet orders for cashew-nut from other countries leading
to a rise in its prices, he said. Sellers involved in the futures market
would have to supply the product at the price fixed earlier, while those
sellers who stocked the commodity would get a better price.
Pillai said the impact of the price was less in the national market.
The price for super quality cashew-nut in the national market ranges from
Rs 500 to Rs 550. Unseasonal rains from March-April 2008 affected the
crop and the default on Vietnam's part in delivering the commodity also
hit supply, he said, adding that business was quiet for the past couple of
weeks.
6. ADVERTISEMENT
For the domestic market, KVS advertises through news papers,
magazines, & other out door means. For the international market, all the
advertising is done by the Cashew Export Council of India; this council
was set up by the Government in 1955.
7. SALES PROMOTION
Promotion deals with informing and persuading the customers
about the firm’s product. It is communication between seller and buyer. It
is telling and selling. It involves various activities which a company may
undertake to communicate its products merits to its present and potential
customers in order to persuade them to buy the product. It motivates the
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people to buy whatever a company is selling.From KVS & SONS point
of view, domestic market is given only secondary importance, since
primary stress is laid on export and international markets. Recently
cashew nuts have been considered more of a luxury item, and as such the
domestic market has never seen to be encouraging as far as the
producer’s prospects are concerned. However of late, even the middle
class people have begun accepting cashew nut as a part of their diet.
OBJECTIVES OF PROMOTION
The basic objectives are to bring about the sales of a product.
To creating awareness.
To stimulate demand.
To help distribution or agents.
To stabilize sales.
To popularize brand name.
Exporters can place advertisement in specialized publications.
(Indian Cashew Journal and Public Ledger) or through the web. In
addition, participation in trade fairs, International Cashew Congress and
undertaking trips to target markets can introduce new contacts; provide
information on market trends and commercial practices.
From KVS point of view domestic market is given only secondary
importance, since primary stress is laid on exports, & international
markets. Recently cashew nut has been considered more of a luxury
items, and as such the domestic market has never seen to be encouraging
as far as the producer’s prospects are concerned. However, of late even
the middle class people have begun accepting cashew nut as a part of
their diet.
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FINDINGS
The main products produced by ‘KVS’ are cashew kernels and
CNSL.
Raw nuts are collected by importing from Indonesia, Benin, Ivoire,
and local market.
21 Kg nuts must be shelled by each cutter at KVS.
It is found that manual peeling is better, because breakdown of
kernels high in mechanical peeling, it makes loss.
Overtime work of peeling section can be done by workers at their
home itself.
KVS products are branded with the name ‘KVS’ it self.
It is observed in the study that the overall performance of KVS is
satisfactory.
Firm gives more importance for international trade.
Advertisement made through the Cashew Export Council.
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SUGGESSTIONS
The firm should conduct marketing research for increasing sales.
Firm should attach good label while packing.
The firm should take good steps to give advertisements to the
public.
Efforts should be made to procure raw material at cheaper rate
&should concentrate on the quality of the product.
Regular checking of final product is important.
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CONCLUSION
This study is made an attempt to know overall production
process and marketing activities of cashew nut. It was found with the
help of' 'KVS& SONS' cashew factory.
The cashew kernels are largely used by the food processing
industry, as it is in confectionary and bakery products such as sweets, ice
creams, cakes, chocolates etc. And the CNSL is used in paint industries
for the manufacture of paints and varnishes, water proofing compound
for Boats and Vessels, Lubricant for break liner.
The major processing steps includes; soaking, roasting,
shelling, CNSL extraction, drying, peeling, grading, packaging. And
machines and equipments needed for process are; Roaster, Sheller,
Cashew nut Decorticator, Dryers, oil expellers, trollys.
KVS produces good quality of products at reasonable price, also
factory provides employment opportunity for local people at Shakthi
Nagar, Mangalore.
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BIBILIOGRAPHY
Website
www. KVS Kamath &Sons.com.
www.google.com
Books
Philip Kotler, “Marketing Management, Twelveth Edition,
Prentice Hall of India Private Limited- New Delhi.
Production and Operations Management-K. ASHWATHAPPA,
SHRIDHARA, BHAT.
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