Orgniziation study of sri sai rice mill bba project report

1

SRI SAI RICE INDUSTRIES

SL.NO. TOPIC PAGE NO.

1 CHAPTER – 1

EXECUTIVE SUMMORY

INDUSRTY PROFILE

COMPANY PROFILE

NEED OF STUADIES

OBJECTIVES OF STUDY

METHODOLOGY

SCOPE OF THE STUDY

FINDINGS ,CONCLUSTION & RECUMENDATION

LIMITATION OF STUDY

3

5

7

8

9

10

11

12

13

2 CHAPTER – 2

INDUSTRI PROFILE

INTRUDUCTION TO THE STUDY

15

19

3 CHAPTER – 3

COMPANY PROFILE

21

4 CHAPTER – 4

RESARCH METHODOLAGY

32

5 CHAPTER – 5

DEPARTMENTAL STRUCTURE ANALYSS

34

6 CHAPTER – 6

FIDINGS

SUGGESTIONS AND CONCLUSION

76

77

78

79

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ANEXTURE

BIBLOGRAPHY.

80

Contents

CHAPTER – 1

EXECUTIVE SUMMORY

INDUSRTY PROFILE

COMPANY PROFILE

NEED OF STUADIES

OBJECTIVES OF STUDY

METHODOLOGY

SCOPE OF THE STUDY

FINDINGS ,CONCLUSTION & RECUMENDATION

LIMITATION OF STUDY

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EXECUTIVE SUMMARY

An organizational study was undergone at Sri Sai Rice Industry,

Gangavathi as a part of the academic programme for a period of one month. Sri Sai

Rice Industries Known as SSRI is a Partnership firm constituted on 22nd August

2007. The partners of the firm are namely Smt. T.Venkataramamma, Smt.

S.Venkataramamma, Smt. T Rekha Rani and Smt. S Lakshmi and it has a leading

position in the market with its main objective to carry out the activity of hulling

paddy to obtain Rice, Broken Rice, Rice Bran, and Husk etc.

A detailed study was undertaken to understand the overall functions of the

organization and individual functional departments such as Production, Human

Resource, Finance and Marketing. The Products to be obtained through paddy from

the Rice Milling plant are Rice, Broken rice, Husk and Bran. And the industry

produces the different qualities of rice such as HMT sona, Sona masoori,

Emergency, BT, IR64, and Swarna.

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The first chapter deals with the Introduction, Objectives, Scope, Need,

Research methodology and the Limitations of the study.

The second chapter deals with the Industry, Company and Product profiles.

Chapter three covers the Organization structure of Sri Sai Rice Industry.

Chapter four covers all the functional departments in detail. The vision, Mission,

Goals and Objectives and SWOT analysis has been covered in the chapter five. The

findings, suggestions and my conclusion of the report are included in chapter six.

INDUSTRY PROFILE

Paddy in its raw form cannot be consumed by human beings. It needs

to be suitably processed for obtaining rice. Rice milling is the process which helps

in removal of hulls and barns from paddy grains to produce polished rice. Rice

forms the basic primary processed product obtained from paddy and this is further

processed for obtaining various secondary and tertiary products.

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Status of Rice Milling Units in India

Rice milling is the oldest and the largest agro processing industry of

the country. At present it has a turnover of more than 25,500/- crore per annum. It

processes about 85 million tonnes of paddy per year and provides staple food grain

and other valuable products required by over 60% of the population. Paddy grain is

milled either in raw condition or after par-boiling, mostly by single hullers of which

over 82,000 are registered in the country. Apart from it there are also a large

number of unregistered single hulling units in the country. A good number (60 %)

of these are also linked with par-boiling units and sun -drying yards. Most of the

tiny hullers of about 250-300 kg/hr capacities are employed for custom milling of

paddy. Apart from it double hulling units number over 2,600 units, under run disc

shellers cum cone polishers numbering 5,000 units and rubber roll shellers cum

friction polishers numbering over 10,000 units are also present in the country.

Further over the years there has been a steady growth of improved rice mills in the

country. Most of these have capacities ranging from 2 tonnes /hr to 10 tonnes/ hr.

Rice milling is one of the major industries in Gangavathi as well as in District

Koppal. Gangavathi & adjoining areas are called the RICE BOWL of the country,

especially due to production of long grain aromatic world popular Basmati rice.The

scenario & status of these industries of the district has been highlighted in terms of

its product range, growth / trends, trade, investment, technology and other

significant issues which project the clear cut scenario of these industries.

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COMPANY PROFILE

Name of the company: SRI SAI RICE INDUSTRIES

Year of started: 22nd August 2007

Type of company: Partnership

Name of the partners: Smt. T.Venkataramamma, Smt. S.Venkataramamma,

Smt. T Rekha Rani and Smt. S Lakshmi.

Production products: Rice

Place : Venkatagiri Hobali, Basapattana (Bagalapur) Village, Gangavati Taluk, Koppal Distick

CORPORATE VISION

“To achieve a national dominance in the rice industrial sector”

Sri Sai Rice Industry has been investing in developing competencies such as the

automation at each processing’s of the production to deliver superior quality with

total Customer Orientation

CORPORATE MISSION

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“Empowerment through customer satisfaction thereby providing good quality

products at an affordable price”

NEED FOR THE STUDY

Facilitate student, to develop congenial corporate atmosphere right from the MBA

program.

Make MBA program more relevant with respect to the necessities of the corporate

or the industries.

To inculcate Students, practical knowledge of the corporate world and the

Functioning of respective departments in the organization.

OBJECTIVES OF THE STUDY

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The purpose of the study is to get an integrated understanding of the organization

To study the working of all the functional departments.

To get to know the details of Sri Sai Rice Industries organizational structure,

existing strategies, work culture which would help in assessing the strengths and

weaknesses of the organization.

To identify the limitations and areas of improvements to provide the suitable

suggestions and means of improvements for the efficient and successful future

operations of the organization.

METHODOLOGY

The report is based on the information & data gathered from the industry on the subject

matter. For this, various meetings, interactions & interviews were held with the concerned

persons. For gathering information a proforma was devised and necessary information was

obtained through personal visits & interaction. This was a time bound assignment; the

emphasis was made on personal Visits & interactions.

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SCOPE OF THE STUDY

An attempt is made to understand the functioning of all the departments and the

work culture of the organization with special reference to Sri Sai Rice Industry

Gangavathi.

The report is mainly on the organization practices adopted in Sri Sai Rice Industry

and to understand the current practices and make the suggestions for its

improvement.

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FINDINGS

The work schedule consists of 3 shifts.

The industry does not pay attention towards the advertising of its products.

The industry does not have sufficient amount of promotional policies, clear cut long

term marketing strategies and product positioning.

SUGGESTIONS

There is a need to concentrate on the various marketing management techniques

like branding, trade marking, costing and pricing techniques and various marketing

methods.

Interaction of the industry with other rice miller associations for the information

exchange etc.

Entrepreneurship and motivation training programs for the workers/employes.

CONCLUSIONS

As the industry does not have sufficient amount of promotional policies, clear cut

long term marketing strategies and product positioning, this may result as a bigger

psychological disadvantage for the industry and even the company has been bearing

the continues losses for the two years. Hence it is better to find out the alternatives

for the same.

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LIMITATIONS OF THE STUDY

Limitations are the constraints that are faced by the researcher during the research.

In this context few limitations that are faced by the researcher are as follows.

Time constraints as I have had only six weeks to complete my study.

The study was limited to Sri Sai Rice Industries Gangavathi.

CHAPTER – 2:

INDUSTRI PROFILE

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INTRUDUCTION TO THE STUDY

INDUSTRY PROFILE

Paddy in its raw form cannot be consumed by human beings. It needs to be suitably

processed for obtaining rice. Rice milling is the process which helps in removal of

hulls and barns from paddy grains to produce polished rice. Rice forms the basic

primary processed product obtained from paddy and this is further processed for

obtaining various secondary and tertiary products.

Status of Rice Milling Units in India

Rice milling is the oldest and the largest agro processing industry of the country. At

present it has a turnover of more than 25,500/- crore per annum. It processes about

85 million tonnes of paddy per year and provides staple food grain and other

valuable products required by over 60% of the population. Paddy grain is milled

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either in raw condition or after par-boiling, mostly by single hullers of which over

82,000 are registered in the country. Apart from it there are also a large number of

unregistered single hulling units in the country. A good number (60 %) of these are

also linked with par-boiling units and sun -drying yards. Most of the tiny hullers of

about 250-300 kg/hr capacities are employed for custom milling of paddy. Apart

from it double hulling units number over 2,600 units, under run disc shellers cum

cone polishers numbering 5,000 units and rubber roll shellers cum friction polishers

numbering over 10,000 units are also present in the country. Further over the years

there has been a steady growth of improved rice mills in the country. Most of these

have capacities ranging from 2 tonnes /hr to 10 tonnes/ hr.

Rice milling is one of the major industries in Gangavathi as well as in District

Koppal. Gangavathi & adjoining areas are called the RICE BOWL of the country,

especially due to production of long grain aromatic world popular Basmati rice.

The scenario & status of these industries of the district has been highlighted in

terms of its product range, growth / trends, trade, investment, technology and

other significant issues which project the clear cut scenario of these industries.

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THE HISTORY OF RICE

According to the Microsoft Encarta Dictionary (2004) and the Chambers

Dictionary of Etymology (1988), the word 'rice' has an Indo-Iranian origin. It

came to English from Greek Oryaz, via Latin Oriza, Italian riso and finally Old

French Ris the same as present day French riz. It has been speculated that the Indo-

Iranian vrihi itself is borrowed from a Dravidian vari. Vari, in Telugu Warinci or

the Tamil arisi, from which the Arabic Ar-ruzz, from which the Portuguese and

Spanish word Arroz originated.

Rice is a grain belonging to the grass family. The plant, which needs both warmth

and moisture to grow, measures 2-6 feet tall and has long, flat, pointy leaves and

stalk-bearing flowers which produce the grain known as rice. Rice is consumed by

nearly one-half the entire world population and many countries, like Asia, are

completely dependent on rice as a staple food.

Rice is one of the few foods in the world which is entirely non-allergenic and

gluten-free.

There are many unproven mythological tales as to how rice came to be, though

historians hold little or no stock in any. Most believe the roots of rice come from

3000 BC India, where natives discovered the plant growing in the wild and began to

experiment with it. Cultivation and cooking methods are thought to have spread to

the west rapidly and by medieval times, southern Europe saw the introduction of

rice as a hearty grain.

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The first cultivators of rice in America did so by accident after a storm damaged

ship docked in the Charleston South Carolina harbor. The captain of the ship

handed over a small bag of rice to a local planter as a gift, and by 1726, Charleston

was exporting more than 4,000 tons of rice a year.

TODAY

Today, rice is grown and harvested on every continent except Antarctica, where

conditions make its growth impossible. The majority of all rice produced comes

from India, China, Japan, Indonesia, Thailand, Burma, and Bangladesh. Asian

farmers still account for 92-percent of the world's total rice production. More than

550 million tons of rice is produced annually around the globe. In the United States,

farmers have been successfully harvesting rice for more than 300 years. There are

thousands of strains of rice today, including those grown in the wild and those

which are cultivated as a crop.

NUTRITIONAL INFORMATION

Rice remains a staple food for the majority of the world's population. More than

two-thirds of the world relies on the nutritional benefits of rice. Rice is naturally fat,

cholesterol and sodium free. It is a complex carbohydrate containing only 103

calories per one-half-cup serving.

INTRODUCTION

Rice is the staple food for 65% of the population in India. It is the largest consumed

calorie source among the food grains. India is the second largest producer of rice in

the world next to China.

West Bengal is the leading producer of paddy in the country. It accounts for 16.39%

of the total production, and the other leading states are Uttar Pradesh (13.38%),

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Andhra Pradesh (12.24%), Punjab (9.47%), Orissa (7.68%) and Tamil Nadu

(7.38%); the remaining states account for 33.45% of the production.

Indian Basmati Rice has been a favorite among international rice buyers. Indian rice

will is highly competitive and has been identified as one of the major commodities

for export. This provides us with ample opportunity for development of rice based

value-added products for earning more foreign exchange.

Modern rice mills are having high capacity and are capital intensive, although

efficient have been developed for obtaining rice by processing the Paddy from its

raw form are playing the significant role in the development of agro processing

industries.

So I choosed my topic as an organizational study at Sri Sai Rice Industries to get an

integrated understanding of the organization and its work culture

CHAPTER – 3

ORGANIZATION PROFILE

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COMPANY PROFILE

Name of the company: SRI SAI RICE INDUSTRIES

Year of started: 22nd August 2007

Type of company: Partnership

Name of the partners: Smt. T.Venkataramamma, Smt. S.Venkataramamma,

Smt. T Rekha Rani and Smt. S Lakshmi.

Production products: Rice

Place : Venkatagiri Hobali, Basapattana (Bagalapur) Village, Gangavati Taluk, Koppal Distic.

CORPORATE VISION

“To achieve a national dominance in the rice industrial sector”

Sri Sai Rice Industry has been investing in developing competencies such as the

automation at each processing’s of the production to deliver superior quality

with total Customer Orientation.

CORPORATE MISSION

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“Empowerment through customer satisfaction thereby providing good quality

products at an affordable price”

INTRODUCTION TO THE COMPANY

Sri Sai Rice Industries Known as SSRI has a leading position in the market

with its main objective to carry out he activity of hulling paddy to obtain Rice,

Broken Rice, Rice Bran, Husk etc.

BACKG ROUND OF THE COMPANY

M/s SRI SAI RICE INDUSTRIES is a Partnership firm constituted on 22nd August

2007. The partners of the firm are namely Smt. T.Venkataramamma, Smt.

S.Venkataramamma, Smt. T Rekha Rani and Smt. S Lakshmi.

All the partners have experience in the said business of Rice Manufacturing and

Trading. The rich experience of the partners, in the business of Rice Industry has

resulted in the outcome of this constitution.

LOCATION OF THE COMPANY

The unit gas been set up at Sy. Nos. 25/K-2-2, 25/K2 P1 and 25/K-4-4, Venkatagiri

Hobali, Basapattana (Bagalapur) Village, Gangavati Taluk, Koppal District by

installing imported ‘Satake make rice milling plant consisting of rubber shellers,

rice whitener & siky polisher, color sorter etc., and drier plant for producing silky

polished super fine rice.

PROMOTERS

A brief profile of the promoters is as follows

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Smt. T Venkataramamma aged 52 years, has been carrying on the business of rice

milling & trading activities for past 20 years. Smt. S.Venkataramamma aged 52

years, has been carrying on the business of rice & paddy trading activities for past

15 years and hails from a respectable business family. Smt. T Rekha Rani aged

about 23 years, hailing from a business family and has over 5 years of experience in

business activities. Smt. S Lakshmi aged about 21 years, hailing from a respectable

business family.

Though the partnership concern is established in the name of female

members of the family, the male members along with the above partners will indulge

in the day to day operations of the business. To mention the respective male

members, are as follows:

Sri T Ramamohan Rao, husband of Smt T Venkataramamma.

Sri S Ramakrishna, husband of Smt S Venkataramamma.

Sri T Krishna Kumar, husband of Smt T Rekha Rani.

Sri S. Ramasheshayya, husband of Smt S Laxmi.

A brief profile of the other members is as follows

Sri T Ramamohan Rao is aged 62 years and is experienced in the business of Rice

Hulling and Trading for over 32 years. He has remained partner in Dhanalaxmi Rice

Industries. The unit has achieved a turnover of Rs 40 ~50 Lakhs per month with a

profit of Rs 5 lacs per month.

Sri T Krishna Kumar aged 32 years, is also involved in the business of M/s

Dhanalakshmi Rice Industries for over 12 years.

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GOALS AND OBJECTIVES

To establish long term relationship with the customers.

Increase the market share by maximizing sales and improve the quality of the

products offered.

To increase export.

Enhance the quality of products thereby utilizing the currently adopted Japanese

technology in a better way.

Continues updatation of the currently adopted Japanese technology.

To induce energy conservation and pollution control system.

To adopt eco-friendly technologies and maintain environmental health.

To act as a catalyst to accelerate industrial development of the region.

SWOT ANALYSIS

This analysis identifies the strong and weak areas as well as opportunities

and threats envisaged in the Sai Rice Industry.

STRENTGHS

Vast experience of all the partners in the business of Rice Manufacturing and

Trading.

Labors union doesn’t exist.

It has its reach throughout the Karnataka and Tamilnadu states.

Experienced and qualified people are present in all departments.

Plant is situated at a place where raw materials are available nearby.

It provides different varieties and good quality of rice at reasonable prices.

WEAKNESSES

It has concerned market at only Karnataka and Tamilnadu states but lacks its

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presence in other parts of the nation.

Sufficient amount of promotional policies for promoting the products do not

exist in the organization.

Lack of any clear cut long term marketing strategy, or product positioning has been

a major problem.

OPPORTUNITIES

Rice is the staple food for 65% of the population in India and it is the largest

consumed calorie source among the food grains, hence there is a greater demand for

rice both in the domestic and international market.

Globalization of Indian economy bond to increase the demand levels.

The modernization, rationalization and automation in technology implemented can

reap the benefits in future.

THREATS

With liberalization competition will be more from larger companies and from Asian

Countries both in the domestic and international market.

Recession or political instability will indirectly throw the company into crisis.

Many industries are expanding their capacities.

Imposition of taxes, levies in comparison to neighbouring states may taper down

the industry.

Lack of its product promotion and competition in the market by players also stand

in the way of its development.

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PRODUCT PROFILE OF THE COMPANY

The Products to be obtained through paddy from the Rice Milling plant are as follows:

Sl.no. Particulars

1. Rice

2. Broken Rice

3. Husk

4. Bran

Paddy when milled usually yields apart from marketable rice (head rice, medium

and big broken rice) about 22% husk and 9% bran. The economic utilization of the

byproducts is essential for proper viability of the industry.

RICE

The product of Sri Sai Rice Industry remains only the rice, but it has the following

different and good varieties of rice available at reasonable prices on the basis of

needs, wants and demands of the customers;

HMT sona

Sona masoori

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Emergency

BT

IR64

Swarna

Husk

Husk is not edible, even by animals. Husk has many possible uses. But the most

practical, profitable use is as fuel, particularly in the rice mill. Parboiling and drying

of paddy needs heat energy. Husk is used as fuel in boilers to produce steam and hot

air required for the purpose. Husk has Colorific value of about 3000 kcal/kg (nearly

one third of that of mineral oil and half that of coal). The other uses of husk are

loose particle boards and insulating material in building and cold storages, in

shipping and packing material etc. Fully burnt white ash of husk can be used for

manufacturing Sodium silicate, silica gel, insulating bricks and also used as diluents

in manure etc.

Bran

Rice bran is the most valuable by product of rice milling industry. It contains 12%

to 15% protein, 14% to 20% of oil and is rich source of vitamin B. Bran is utilized

in several ways. It is used as feed for animals. It is used as a more valuable source

of vegetable oil and should be first solvent extracted to recover the oil. The

extracted bran is used as animal feed.

Broken Rice

The medium and large broken rice is mixed with the head rice depending on the

marketing requirements. The small broken rice that is separated during grading of

milled rice is sold as such or used for rice flour making.

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ORGANISATION STRUCTURE

Managing Director

PRODn.DPT FINANCE.DPT MRKTING.DPT HR.DEPT

(MNGR) (MNGR) (MNGR) (MNGR)

Q.C WARKERS A/C COSTING PURCHES SELLING SAFTY SECURITIES

DPT DPT DPT DPT DPT DPT WELFAIR DPT

DPT

ASSIST. SUPRAVISOR ASSIST ASSIST SUPRAVISOR ASSIST GOARDS

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CHAPTER – 4

RESARCH METHODOLAGY

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Research Methodology :

Research:

Research is nothing but systematic investigation and study of sources & materials. it

establish facts and it reach conclusions.

Methodology:

Methodology is nothing but a body of methods used in a particular activity.

The methodology includes the personal interaction with the finance manager.

The report is based on the information & data gathered from the industry on the

subject matter. For this, various meetings, interactions & interviews were held with

the concerned persons. For gathering information a proforma was devised and

necessary information was obtained through personal visits & interaction. This was

a time bound assignment, the emphasis was made on personal Visits & interactions.

The required information was assimilated by two sources.

Primary Data: This data is collected through direct contact with the managing

director of the industry, and the department heads.

Secondary Data: This data is gathered from the reports, induction manuals and the

internet.

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CHAPTER – 5

DEPARTMENTAL STRUCTURE ANALYSIS

DEPARTMENTAL STRUCTURE ANALYSIS.

FUNCTIONAL DEPARTMENTS

The major departments in the Sri Sai Rice Industries are ,

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1. Production Department

2. Human Resource Department

3. Finance Department

4. Marketing Department

PRODUCTION DEPARTMENT

Production is the process by which goods and services are created. It is the

conversion of raw materials into the finished products and the services by using the

different processes, machines, men, tools and etc.

Definition

Production and Operations Management ("POM") is about the transformation

of production and operational inputs into "outputs" that, when distributed, meet the

needs of customers.

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POM incorporates many tasks that are interdependent, but which can be grouped

under five main headings:

PRODUCT

Marketers in a business must ensure that a business sells products that meet customer

needs and wants. The role of Production and Operations is to ensure that the business

actually makes the required products in accordance with the plan. The role of PRODUCT

in POM therefore concerns areas such as:

- Performance

- Aesthetics

- Quality

- Reliability

- Quantity

- Production costs

- Delivery dates

PLANT

To make PRODUCT, PLANT of some kind is needed. This will comprise the bulk of the fixed

assets of the business. In determining which PLANT to use, management must consider areas

such as:

- Future demand (volume, timing)

- Design and layout of factory, equipment, offices

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- Productivity and reliability of equipment

- Need for (and costs of) maintenance

- Heath and safety (particularly the operation of equipment)

- Environmental issues (e.g. creation of waste products)

PROCESSES

There are many different ways of producing a product. Management must choose the best

process, or series of processes. They will consider:

- Available capacity

- Available skills

- Type of production

- Layout of plant and equipment

- Safety

- Production costs

- Maintenance requirements

PROGRAMMES

The production PROGRAMME concerns the dates and times of the products that are to be

produced and supplied to customers. The decisions made about programme will be influenced by

factors such as:

- Purchasing patterns (e.g. lead time)

- Cash flow

- Need for / availability of storage

- Transportation

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PEOPLE

Production depends on PEOPLE, whose skills, experience and motivation vary. Key people-

related decisions will consider the following areas:

- Wages and salaries

- Safety and training

- Work conditions

- Leadership and motivation

- Unionisation

- Communication

PRODUCTION PROCESS

The production process in brief includes the following

Paddy Pre-Processing

Milling of Rice

Cleaning

Dehusking

Husk Separation

Paddy Separation

Compartment Type Separator

Polishing

Grading

Color Sorter

Weighing and Packing.

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A detailed process of the above steps is explained as below

Paddy Pre- processing

A. Paddy Cleaning

Paddy after harvesting and thrashing contains some foreign matter depending upon

harvesting, thrashing and handling methods. The foreign matter may be other seeds,

straw, chaff, sand; stones, dust, soil and iron particles. Paddy received in the mill

must be first cleaned to remove these foreign matters before it can be properly

stored. Otherwise they may cause deterioration of the paddy during storage or may

damage or obstruct the conveying and milling machinery. The first cleaning

operation of paddy after thrashing is called 'Scalping'. It removed the bulk of the

foreign matter. But the paddy is not completely cleaned. The small amounts of

impurities that still remain are later removed during the next cleaning operation

during the rice milling process. Scalper cleaners use both sieves and aspirators.

B. Paddy Drying

Intake paddy also generally contains more moisture than is safe for storage and has

to be dried. Freshly harvested paddy normally has moisture content of 18% to 25%.

This moisture must be brought down by drying to ensure a good storage quality. A

moisture content of 14% is considered safe for short periods of storage. For long

storage, the grain should be dried to 13% moisture or less. During the process of

drying, cracking of paddy may occur if drying is not proper. This will lead to

breakage of rice during milling. Therefore, drying process must be so adjusted that

cracks to not develop in the grains. The high moisture gradient between the grain

center and the surface causes cracking. Drying should not be continuous, but in

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stages, with the rest periods between drying stages. These periods are called

tempering. This avoids cracking of paddy while drying. It is said that not more than

2 to 4% moisture should be removed in one drying stage in the case of mechanical

drying with hot air. Paddy may be dried for, say half an hour then tempered for 6

hours, then dried again. This cycle is followed till the paddy is dried to required

moisture. Several methods of drying are adopted viz., Sun Drying, Mechanical

Drying, Batch dryers or continuous flow dryers. Paddy husk is the most common

fuel used for drying paddy.

C Paddy Storage

Paddy is harvested twice or thrice in a year. But rice is consumed throughout the

year. Therefore, paddy is stored to meet the need between harvests. Storage must

keep the paddy safe and also maintain its quality. It should provide protection

against weather, insects, pests, birds, micro organisms, moisture and any type of

contamination. Care should also be taken to store different types of paddy

separately to avoid mix up. Paddy dried to a moisture level (less than 14%) should

be maintained dry and cool during storage.

Paddy can be stored in bags or in bulk. The choice between the two systems

depends on a number of local factors including cost of local construction, bags,

operating and handling equipment, transport system, labour and investments. Either

method can provide safe storage as long as scientific storage practices are observed.

Storage bins can be either of steel or concrete.

Milling of Rice

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Unlike other food grains, rice is mostly cooked and consumed in whole form.

Hence the milling operation should provide maximum out turn of milled rice and

with a minimum of brokens. Before the paddy is kept ready for milling operation, it

is necessary to bring all the grains, preferably to a uniform moisture content level

which may vary from 10% to 14% for optimal milling yields and avoid excessive

breakage. The different kinds of milling are hand pounding, huller, sheller cum

huller.

The operations of a Modern Rice Mill are

Cleaning: Removing foreign matter such as sand, stones, straw, seeds etc.

Dehusking: Removes husk from paddy with minimum of damage to the grain.

Husk separation: Removes the husk from the mixture obtained after dehusking.

Paddy separation: Separates dehusked brown rice from remaining unhusked paddy,

the paddy being returned for dehusiing

Polishing: Removes all or part of the bran layer from the brown rice to produce

polished rice

Grading: Separates brokens from unbroken rice. The brokens are separated into

different sizes.

Apart from the above, the mill also use color sorters and length graders.

A. Cleaning

Cleaning is the first step in rice milling. It enables the production of clean rice and

provides protection to other milling machinery, thereby increasing milling capacity.

Impurities that are lighter than paddy are removed by an aspirator. Metallic (iron-

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impurities) are removed by the use of a magnet. Impurities larger or smaller in size

but heavier than paddy are removed by sieves. Vibrating sieves are used. Impurities

that have the same size as paddy but are heavier than paddy are removed by specific

gravity separator namely destoners. Intake paddy is often subjected to a preliminary

partial cleaning prior to storage and prior to the main cleaning in the mill.

B. Dehusking

A rubber- roll sheller consist of two rubber roller rotating in opposite direction at

different speeds, both rollers have the same diameter, but one roll rotates about 25%

faster than the other. The differences in peripheral speed subject the paddy grains

falling between the roll to a shearing action that strip of the husk. One roller is fixed

in position and the other is adjustable laterally in order to increasing or decreasing

the clearance between the two rolls. Rolls are cooled by blowing air on the roll

surface. The shelling i.e., dehusking rate is generally maintained at about 85%,

compared to the disc shelling. Some breakage invariably occurs and the fine brokers

may be blown off along with the husk. The degree of Shelling with the rubber roll

can be raised to about 85% without much of grain breakage, whereas the disk

sheller can be operated at not more than 60-70% degree of shelling, to keep

breakage at a low level. However, rubber roll wear out fast and have to be replaced

often. This, though a disadvantage, is offset by the reduction in breakage and

increase in total rice outturn.

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C. Husk Separation

A mixture of dehusked rice (brown rice), remaining unshelled paddy, some broken

rice and husk that has been split off the paddy comes out of the sheller. This mixture

is subjected to sieving cum aspiration to separate brokens and husk. Sieving prior to

aspiration helps in separating and recovering the small brokens formed during

shelling. Light weight paddy husk is separated from the heavier paddy and rice by

aspiration.

D. Paddy Separation

Shelling is not possible to a level of 100%. The grains differ in size due to which

some grains remain unshelled. Therefore, a paddy separator is used to separate the

remaining unhusked paddy from husked brown rice. The unhusked paddy is

returned to the dehusker while the brown rice is carried forward to the polisher. The

separation is accomplished in the separator by taking advantage of the difference in

physical density (heaviness), size and surface smootheness (or toughness) of paddy

and brown rice.

Paddy collected from the separator is called return paddy, for it has to be returned to

the sheller: The return paddy grains are shorter or thinner than normal paddy. Hence

it is preferable to collect the return paddy in a bin and shell it at the end with closer

clearances between the rolls.

Alternatively, the return paddy can be shelled in a separate small sheller. This will

increase the efficiency of the plant. If return paddy is returned to the original sheller

with same setting, it will simply go on circulating, thus lowering the capacity.

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E. Compartment Type Separator

The oscillating table is-divided into zigzag channels and is inclined from one side to

the other along the zigzag channels. The surface of the table is of smooth steel. The

table oscillates cross wise, i.e. perpendicular to the direction of the grain flow. The

mixture of paddy and brown rice is fed from the hopper to the center of the

channels. The impact of the grains on the sides of each channel causes the unhusked

paddy grains to move up the inclined slope toward high side of the table. The

dehusked brown rice slides down the slope to the lower side of the table. The slope

and stroke of the table are adjusted to meet the needs of paddy of different size or

condition, to ensure complete separation. Usually there are several decks one above

the other to increase capacity.

Paddy collected from the separator is called return paddy, for it has to be returned to

the sheller. The return paddy grains are shorter or thinner than normally paddy.

Hence, it is preferable to collect the return paddy in a bin and shell it at the end with

closer clearances between the rolls. Alternatively the paddy can be shelled in a

separate, small sheller. This will increase the efficiency of the plant. If return paddy

is returned to the original Sheller with same setting, it will simply go on circulating,

thus lowering the capacity.

F. Polishing

The brown rice is next polished to remove bran layers. Some amount of polishing is

essential for easy cooking and storage, although excessive polishing reduces the

nutritive value of rice. There are three whiteners, one glaze master and one silky

polisher in the unit for effective polishing of brown rice.

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G. Grading

After the polishing operation, the milled rice contains, in addition to white grains,

broken grains of different sizes as well as some bran and dust. Separation of these

materials must be done. Bran and dust particles are removed by aspiration. Broken

rice may be separated either by a Plan sifter or by a Trieur.

Color Sorter

Color sorter is used for sorting out discolored grains from the lot. Optical sensors

are adopted here to compare the color of the Individual grains. The discolored

grains are blown out of the main stream.

Weighing and Packing

This can be manual or automatic. An automatic intake weigher receives rice in a

continuous flow and releases it in exact predetermined quantities by weight. At the

same time, the number of weighments made is recorded by an automatic counter,

thus giving an accurate record of the total weight of material processed in the mill.

The automatic bagging scale ensures dust free bagging of the finished products and

records the number of weighments made, by an automatic counter.

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THE PROCESS FLOW CHART

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STUCTURE OF PRODUCTION DEPARTMENT

HUMAN RESOURCE DEPARTMENT

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A human resources department is a critical component of employee well-being in

any business, no matter how small. Human resource department is devoted to

providing effective policies, procedures, and people-friendly guidelines and support

within companies. Additionally, the human resource function serves to make sure

that the company mission, vision, values or guiding principles, the company

metrics, and the factors that keep the company guided toward success are

optimized.

The personnel department is comprises of Manager [Personnel] and staff. Under

this department safety and welfare, and security departments are functioning

towards its success oriented objectives.

The management of human resources at the Industry

Human Resource Management is the logical and strategic move towards the

management of industries most treasured assets such as workers or the employees,

who work individually and jointly contributing to the achievement of the aim or the

objective of the business. The Human Resources Management widely replaced the

phrase Personnel Management as a representation of managing the people in the

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association. The Human Resources Management always functions for the welfare of

the employees, as they are the valuable resource of the organization.

Objectives of the human resource management

Human resources plays a vital role in any of the organization and it is important

strength of the organization. The basic objective of human Resources is to

maximize return on the investments and thereby, reducing the financial risk arousal

to the organization.

It is the duty of the human resources management committee of the organization to

carry out these activities in a successful, fair, legal and consistent way. The human

resources deal through two various worlds:

I. Unionized: Where there is a control through collective agreement and union stands

for employees to management in respect of their wages and salary.

II. Non- Unionized: Where the management has a control over the employees.

Key Functions of Human Resources Management

The followings are the functions that the industry follows for managing its human

resources successively.

Manpower Planning: The HR manager considers the actual requirement of the staff

for the organization. Because the overstaffing is wasteful and expensive, and

understaffing leads to loses of the organization economics and profits.

Employee selection: Selection of the employees for the suitable job is done.

Employees motivating: Motivates employees and encourage them to give their best

in work productivity. Providing financial rewards to the staff.

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Employee Relation: Keeping a healthy relationship with the employees and their

problems are redressed.

Payroll Module: Payment of the salaries and wages to the workers at proper time.

The process

The human resources management consists of several processes. The management

makes every possible decision to achieve the pre-determined goals of the

organization. The process includes Recruitment, Selection, Placement, Induction,

and Development which are briefed below;

Recruitment

It is the process of searching for required human resources and stimulating them to

apply for the jobs in the organization. A proper balance should be maintained

between the internal and external sources of recruitment. Usually the industry is

following the internal recruitments as well as the references by the internal workers

for the external sources of recruitment.

Selection

It implies judging the different candidates for the jobs in the organization and the

industry chooses the most appropriate candidates from a pool of candidates applied

for the job.

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Placement

It means assigning suitable jobs to the selected candidates so as to match employee

qualifications with the job requirements likewise the company places the right

candidates who will be selected after a successful selection process.

Induction

It involves familiarizing the new employee with the company, the work

involvement and existing employees so that the new people feel at home and can

start work confidently.

Development

Human resource development is the process of improving the knowledge, skills,

aptitudes and values of the employees so that they can perform the present and

future jobs more effectively. In order to build up a smooth relationship between the

employees and organizations and human resource development aid to:

Develop competencies among the individuals in the organizations that allow them

to perform their present and future works thoroughly, by means of intended learning

activities

Ensure equivalence between the organization and the individual need thereby

bridging the gap between the needs.

This function includes;

Performance and potential appraisal

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It implies systematic evaluation of employees with respect to their performance on

the job and their potential for the development.

Training

It is the process by which employees learn knowledge, skills and attitudes to further

organizational and personal goals.

Executive development

It is the process of developing managerial talent through appropriate programs.

The different sub-departments functioning under the human resource

department are ,

Safety and welfare department

Safety and welfare department is functioning under the Human Resource

department of Sri Sai Rice Industry. The department performs the different

functions of welfare of labor of the enterprise. Welfare activities of the enterprise

that promote the well being of its employees, such welfare activities on the part of

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the management are essential for winning and maintaining wholehearted co-

operation from the employees.

Security department

There are security personnel’s who are working for the security of the employees

and the industry. The security department comprises of a security officer, security

guards and CCB cameras.

Labor welfare practices in human resource department

“The scheme of labor welfare may be regarded as a wise investment which should

and usually does bring a profitable return in the form of greater efficiency”

according to the experts, labor welfare activities are those which include proper

working conditions provided to the workers by the employer on a voluntary basis.

The basic aim of labor welfare measure is to provide services facilities and

amenities to the workers in addition to wage and other legal payments. The

followings are the aims and objectives of the labor welfare measures.

The labor welfare measures aim at improving the economic position of the workers.

To develop a sense of responsibility and dignity among workers.

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These measures enable the workers to enjoy a fuller and richer life because they

provide all kinds of facilities and comforts to the workers and therefore, the workers

will be able to lead a happy life.

To reduce the labor turnover and absenteeism rate.

To raise the morale of the workers and to have a good rapport.

To enhance the work efficiency, productivity and potentiality of the workers.

Welfare and Amenities within the establishment provided by Sri Sai rice Industries

It is the employer’s responsibility to provide facilities within the establishment, as

they form a part of working conditions. The facilities within the establishment are

regulated by the factories Act 1948, the plantation Labor Act 1951 and the mines

Act 1952.

The followings are the Welfare and amenities within the establishment.

Washing and rest shelters.

Latrines and urinals.

Arrangements for drinking water.

Arrangements for prevention of fatigue.

Shift allowances.

The followings are the other Welfare and amenities provided by Sri Sai Rice

Industries for the workers.

Medical facilities.

Housing facilities.

Clothing facilities.

Traveling allowances.

Dearness allowances.

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Bonus of 2 months on deepawali fest every year.

Social insurance measures, including gratuity, pension provident fund.

Fund from Karnataka State Workers Welfare Fund, Karmika Kalyana Nidhi.

Wage distribution

All the wages to the workers are distributed by the office. For the overtime the

double wages will be given and others will get the single wage accordingly and

respective to the work done.

There are two types of the wage distribution systems in Sri Sai Rice Industry

namely;

Time rate system

Under this system, the payment is made to the workers according to the

time taken to perform the job. This wage distribution system is applicable only to

the semi-skilled, skilled, clerical and the technical workers as it is based on the

monthly bases.

Piece rate system

Under this system, a worker is paid a fixed amount per unit produced without any

regard to the time taken and this is applicable to all the un-skilled workers.

Structure of human resource department

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FINANCE DEPARTMENT

INTRODUCTION

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The finance function deals with the procurement of money at the time when it is

needed and its effective utilization in the enterprise, as it is required to purchase

machines and materials, to pay wages and salaries to employees and to allow credit

facilities to customers.

An important requirement for the success of any business organization is the

provision of sufficient amount of funds or capital. For companies, which carry on

production and distribution on a large scale, provision of adequate finance is a very

challenging task as it affects all the business decision where money is involved.

Finance is the key department of any Organization.

In our present day economy, Finance is defined as the provision of money, at the time

when it required.

Every enterprise whether big, medium or small, it needs Finance to carry on that so it is

lifeblood of an enterprise.

Finance is the key department of any Organization.

In our present day economy, Finance is defined as the provision of money, at the time

when it required.

Every enterprise whether big, medium or small, it needs Finance to carry on that so it is

lifeblood of an enterprise.

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But the Major decisions like Investment Decision are taken by Managing Partners of the

firm.

The other General Accounts are maintained by the Accounts clerks and cashier.

Tax matters are handled by the Chartered Accountant of the company

OBJECTIVES OF FINANCE DEPARTMENT

Finance is one of the basic and core functional area of any of the business

enterprise. Hence the objectives of finance department must match up with the

overall objectives of the enterprise, so that these objectives would directly

contribute towards the achievement of the overall organizational objectives.

The followings are the objectives of finance department of Sri Sai Rice Industry.

Ensure that there are adequate funds available to acquire the resources needed to

help the organization achieve its objectives.

Ensuring regular and efficient supply of capital to the business.

Ensuring a fair rate of return on capital to the supplier.

Ensuring better utilization of capital by following the principles of Liquidity,

profitability & safety.

Ensure costs are controlled.

One of the major objective of finance department is to identify appropriate financial

information prior to communicating this information to the managers and decision

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makers, in order that they would make the better judgments.

Functions:

Major function of Finance department is exercise function and reconciliation of

major accounts.

Costing is undertakenPayroll activity consisting mainly of Salary, Provident

fund. Income taxes.

Supplier billing

Payment to suppliers

Rate fixation

General accounts such as schedules, Trial balance

Cash and Bank balance.

BOOKS MAINTAINED:

General Ledger, Purchase Ledger, Main cash book,

Sales Registers, Petty cash books, Sundry Debtor

registers, Sundry creditor registers, Wages,

Allowances, Loan records etc…..

The different sub-departments functioning under the finance department are,

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ACCOUNTS

It comprises of the accounts manager and the assistants who are concerned with the

measurement of income or expenditure for specific periods of time such as month

and that (income /expenditure statement) financial reports at the end of the period.

COSTING

It is concerned with determining relevant cost and performing other analysis like

preparation of budgets and performance analysis based on budgets.

MANAGER-FINANCE

The finance manager is responsible for overall financial planning and for raising

capital. He has to perform the following functions and the major activities such as,

forecasting, fund management and auditing capital budgeting.

PROFIT AND LOSS ACCOUNT OF SRI SAI RICE INDUSTRY

Particulars Amount Particulars Amount

To Miscellaneous 61,063.10 By interest on fixed 3,25,207.00

expenses deposits

To Stationary 4,600.00 By net loss 1,34,337.10

To license renewal fees 67,691.00

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To Professional tax 2,500.00

To lease rent 5,000.00

To Bank interest 3,18,690.00

Total Rs 4,59,554.10 Total Rs. 4,59,554.10

Source: Annual reports of Sri Sai Rice Industries 2009.

BALANCE SHEET OF SRI SAI RICE INDUSTRY AS ON 31-03-2009

Liabilities Amount Assets Amount

God’s account 202.00 Fixed assets

Partners capital accounts Machinery 3,67,08,221.10

1] Smt. T. 8,93,630.9 I nvestments

Venakataramamma 1] N. S. C 6,000.00

2] Smt. S.

Venakataramamma 6,33,630.97 2] Bank F. D 53,06,705.00

3] Smt. T. Rekharani 10,12,753.98 Current assets

4] Smt. S. Lakshmi 4,58,553.98 1] Gunny bags 4,23,442.00

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Reserves and Surplus -Nil- 2] Sundry debtors 10,95,491.00

3]Cash at bank 2,37,337.50

Secured loans

1] S.B.M Gangavathi 1,01,16,483.00 S.B.M GvtMTL a/c

4] Cash in hand 1,85,958.40

2] S.B.M Gvt 1,01,11,182.00

C.C a/c

3] Sakake international 2,02,01,472.00

Banks ltd, Thailand

Un-Secured loans -Nil-

Current liabilities and

Provisions

Sundry creditors 5,35,228.00

Difference in books 18.10

Total Rs. 4,39,63,137.00 Total Rs. 4,39,63,137.00

Source: Annual reports of Sri Sai Rice Industries 2009.

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Structure of finance department

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MARKETING DEPARTMENT

INTRODUCTION

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Marketing is indeed an ancient art and it emerges as a management discipline and it

can be further defined as an integrated communications-based process through

which individuals and communities discover that existing and newly-identified

needs and wants may be satisfied by the products and services of others.

The activities of a company associated with buying and selling a product or service

includes advertising, selling and delivering products to people. People who work in

marketing departments of companies try to get the attention of target audiences by

using slogans, packaging design, celebrity endorsements and general media

exposure. The four 'Ps' of marketing are product, price, place and promotion.

Domestic marketing

A company marketing only within its national boundaries only has to consider domestic

competition. Even if that competition includes companies from foreign markets, it still

only has to focus on the competition that exists in its home market. Products and services

are developed for customers in the home market without thought of how the product or

service could be used in other markets. All marketing decisions are made at headquarters.

The biggest obstacle these marketers face is being blindsided by emerging global

marketers. Because domestic marketers do not generally focus on the changes in the global

marketplace, they may not be aware of a potential competitor who is a market leader on

three continents until they simultaneously open 20 stores in the Northeastern U.S. These

marketers can be considered ethnocentric as they are most concerned with how they are

perceived in their home country. (Kotabe & Helsen, pp.13, 15)

Export marketing

Generally, companies began exporting, reluctantly, to the occasional foreign customer who

sought them out. At the beginning of this stage, filling these orders was considered a

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burden, not an opportunity. If there was enough interest, some companies became passive

or secondary exporters by hiring an export management company to deal with all the

customs paperwork and language barriers. Others became direct exporters, creating

exporting departments at headquarters. Product development at this stage is still focused

on the needs of domestic customers. Thus, these marketers are also considered

ethnocentric. (Kotabe & Helsen, pp.15-16)

The marketing mix in Sri Sai Rice Industry is as follows:

Product mix:

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The product aspects deal with the specifications of the actual goods or services, and

how it relates to the end-user's needs and wants. The scope of a product generally

includes supporting elements such as warranties, guarantees, support and the

quantity. The product of Sri Sai Rice Industry remains only the rice, but it has the

following different and good varieties of rice available at reasonable prices on the

basis of needs, wants and demands of the customers;

HMT sona

Sona masoori

Emergency

BT

IR64

Swarna

The brand name

A brand is a name, term, design, symbol, or other feature that distinguishes products

and services from competitive offerings. A brand represents the consumers

experience with an organization, product, or service. A brand is more than a name,

design or symbol. Brand reflects personality of the company which is organizational

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culture and it can be further defined as creating reference of certain products in

mind.

The brand name “Sai Rice” is used by the industry for all its varieties of products.

Price mix:

Pricing of the products is the critical decision that has to be taken by the

management. After meeting all costs involved, the sales revenue generated must

yield a surplus, this can be the profit to the company. Pricing decisions are handled

in different ways in different companies.

Sri Sai Rice Industry considers the following factors in determining the price for its

products.

Cost of production

Competition in the market.

There are different prices for the different products, basically depends upon

the quality and variety of the rice in consideration with the aforesaid two vital

factors.

Distribution mix:

Channel distribution refers to the channel we select for our products flow. It may be

passed on through the agents/brokers, traders/wholesalers, retailers and eventually

the customers.

The channel of distribution of Sri Sai Rice Industry is as follows:

Agents/brokers

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traders/wholesalers

The company appointed the selling agents in geographical manner. The sales targets

are fixed by the company and the appointment of the selling agents is done by the

managing director, marketing and sales managers of the industry.

Attractive rates of commissions are given by the industry to the agents likewise,

Rs.10/quintal and Rs.100/ton. On the basis of the commission given by the industry,

the agents make a transaction between the industry and the different

traders/wholesalers.

Promotion mix:

This includes advertising, sales promotion, promotional education, publicity, and

personal selling. Sri Sai Rice Industry has adopted the different advertising

strategies for the promotion of its products, which are as follows;

Market reviews

Market reports

The aforesaid are weakly issues which use to comprise of only the promotional

advertising of the products of different companies and these are issued in the states

of Karnataka and Tamilnadu. The industry is spending 72,000/annum in Karnataka

state and 96,000/annum in Tamilnadu state for the promotional advertising of its

products through the market reviews and the market reports.

The market

The term market is the root word for the word marketing. Market refers to the

location where exchanges between buyers and sellers occur. Marketing pertains to

the interactive process that requires developing, pricing, placing, and promoting

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goods, ideas, or services in order to facilitate exchanges between customers and

sellers to satisfy the needs and wants of consumers.

Sri Sai Rice Industry has been concentrating only in the Karnataka and Tamilnadu

states as the targeted market for its products.

Structure of marketing department:

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CHAPTER – 6

FIDINGS

SUGGESTIONS

CONCLUSION

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FINDINGS

The work schedule consists of 3 shifts.

The industry does not pay attention towards the advertising of its products.

The industry does not have sufficient amount of promotional policies, clear cut long

term marketing strategies and product positioning.

During the period of study it has been found that, the company continuously for the

two years had made the losses.

There are monetary and non-monetary benefits for the employees, when they have

been asked to take up additional responsibilities.

The rice milling industry has got enough growth potential especially in terms of its

currently adopted Japanese technology in the whole process of production.

More Emphasis is given on the automation and upgradation of the technology being

used in the industry for producing the good quality and customer satisfactory

products.

Number of the workers in the industry has been reduced because of the continuous

automation and upgradation of the technology.

SUGGESTIONS

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There is a need to concentrate on the various marketing management techniques

like branding, trade marking, costing and pricing techniques and various marketing

methods.

The entrepreneurs have learnt from their ancestors in a traditional way. In order to

further enhance the productivity, quality, customer satisfaction, effective utilization

of resources and continual improvement there is a need to induce various modern

management techniques in the unit. This may go a long way in widening the vision

of the entrepreneurs and growth of industry at National/International level.

The management should consider some serious actions regard the bearing of

continuous losses for the two years.

Interaction of the industry with other rice miller associations for the information

exchange etc.

Entrepreneurship and motivation training programs for the workers/employes.

Training to unit owners in the field of 5S, TQM and benchmarking, ISO 9000 etc.

Brochure preparation and web-site launching.

CONCLUSIONS

As the industry does not have sufficient amount of promotional policies, clear cut

long term marketing strategies and product positioning, this may result as a bigger

psychological disadvantage for the industry and even the company has been bearing

the continues losses for the two years. Hence it is better to find out the alternatives

for the same.

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Sri Sai rice mill is having the capacity and the potential for succeeding in its vision

much sooner thereby producing and enhancing the quality of the products by

utilizing the currently adopted Japanese technology in a better way.

To conclude this report I extend my profound gratitude to the management, staff,

workers and specially the managing director of Sri Sai rice mill for their valuable

co-operation.

ANNEXURES

Marketing Management – Philip Kotlar. 12th edition.

TQM – Total Quality Management.

ISO – International Standards Organization.

5s –

Seiri [ Sort ]

Seiton [ Straighten ]

Seiso [ Sweep or Spic and Span ]

Seiketsu [ Standardize]

Shitsuke [ Self discipline]

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IRRI – International Rice Research Institute

KSIIDC- Karnataka State Industrial Investment and Development Corporation.

BIBLIOGRAPHY.

Text books:

Marketing Management – Philip Kotlar. 12th edition.

Humanresorce management. - K.D.Basava

Financial Management – M.B.Kadkol.

Records:

Company’s annual reports.

Websights.

www.google.com

www.asiarice.org

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http://www.google.com/

Orgniziation study of sri sai rice mill bba project report

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