Project ReportOn

ORGANISATION STUDY OF HANNA SOFT DRINKS Submitted in Partial Fulfillment Of The Requirements Of The Master of Business Administration to

BYPradeep Kumar TRegister no:092130379

Under the guidance OfMrs. V.T. Shailashree(faculty , SIMS)

SRINIVAS INSTITUTE OF MANAGEMENT STUDIES, MANGALORE.

Mrs. V.T. Shailashree Lecturer of SIMS, SIMS.

CERTIFICATEThis is certify that the project work entitled, ORGANISATIONAL STUDY OF HANNA SOFT DRINKS WITH special reference to AL-MANHAL ENTERPRISES Kanhangad has been prepared by Pradeep Kumar T(Reg.no.092130379) under the guidance and supervision in partial fulfillment of the requirement of the Master of Business Administration from SIMS.

Place: Date:

CERTIFICATE

This is certify that Mr. Pradeep Kumar T, 3rd semester MBA student of Srinivas Institute of Management Studies, Mangalore, affiliated to Mangalore University has undergone an summer internship program in our institution from July 3rd to July 23, 2010.

SECRETARY

Pradeep Kumar T (Reg.No:092130379) Srinivas Institute Of Management Studies.

DECLARATION I hereby declare that the project work entitled, A Study on Overall functions of HANNA SOFT DRINKS with special reference to AL-MANHAL ENTERPRISES Kanhangad is a bonafide record of my summer internship project work for acquiring MBA degree and no part of I has been submitted by me for any degree or reorganization before.

Place Date

: : Pradeep Kumar T

Forwarded :

ACKNOWLEDGEMENTIn my endeavor to write this summer internship report ORGANISARION STUDY OF HANNA soft drinks with special reference to AL-MAN HAL ENTERPRISES KANHANGAD. I have been fortunate enough to receive whole hearted support and inspiration from many persons. I am grateful to our principal Mr. P.S.AITHAL sir, leading light of our institution. I am also indebted to my internal guide

Mrs.V.T.SHAILASHREE, lecturer, MBA department, who has provided me all sorts of advice, support and encouragement to complete this project work successfully. I would like to extend hearty thanks to Mr. Bahodoor Muhammed Kunhi K.M. and Mr. Ashif for providing me an opportunity to do my summer internship project work in their esteemed organization. Finally I would like to express my hearty thanks to all teachers, my parents and friends and colleagues for encouraging me and for their timely help. Above all I am thankful to the almighty, GOD for the successful accomplishment of this project work. PRADEEP KUMAR T

PREFACE

HANNA is a famous soft drink industry in Kerala. HANNAplays an important role in the Consumer Market. HANNA soft drink is an important source of income and it is an employment opportunity for the rural people who are unemployed. AL-MANHAL ENTERPRISES was constructed on December 1998. AL-MANHAL ENTERPRISES mainly

manufacture three products. They are soft drinks, aerated water and drinking water. HANNA formed and registered under the SSI Act 1951.

CONTENTS

CHAPTER 1

INTRODUTION

INTRODUTIONIn the recent year s soft drinks production have become more popular among different cross section of population due to increased demand for convenience product. Among the soft drinks, particularly cool drinks are the cheapest, processed and ready to drinking products. Irrespective of the language, cultures, countries and state people all over the world are using colorings. Even though this industry is on the profit, in recent years the industry faces many challenges such as non-availability of resources, strong, protest and legal banning due to environmental problem and health problem created by production and consumption of soft drinks. The industrial members have to overcome this problem for their success and survival.

INDUSTRIAL PROFILESoft drinks can be tracing their history back to the mineral water found in natural springs. Bathing in natural springs has long been considered a healthy think to do, and mineral water was said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind the bubbles in natural mineral water. The first marketed soft drinks (non-carbonated) appeared in the 17th century. There were made from water lemon juice sweetened with honey. In 1676, the campaigned De-Lemonadiers of Paris was granted a monopoly for the sale of lemonade soft drinks. Enders would carry tanks of lemonade on their backs dispensed cups of the soft drinks to thirsty Parisians.

In 1767, an Englishmen, Mr. Joseph Priestly, created the first drinkable man made glass of carbonated water. Three years later, the Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulphuric acid. In 1810, the first US patent was issued for the means of the mass

manufacture of imitation mineral waters to Simons and Rendell of Charston, South Carolina. Carbonated beverages did not achieve great popularity in America until 1832, when John Mathews invented his apparatus for making carbonated water. John Mathews mass manufactured his apparatus for sale to others. The drinking of either natural or artificial mineral water was considered a healthy practice. American Pharmacists, who were selling most of the mineral waters, started to add medicine and other flavorful herbs to the unflavored beverage: e.g., brinch bank, dandelion, sarsaparilla and fruit extracts. The early dug stores with their soda fountain become a popular part of American culture. Customers want to take the drinks home with them and the soft bottling grew from the customers demand.

CHAPTER 2

ABOUT THE PROJECT

INTRODUCTIONThe study was conducted in HANNA SOFT DRINKS, Kanhangad gives a fair idea about strategies implemented by the company for its products. The study can be taken as a basis in case of similar studies by other ventures in this field.

OBJECTIVES OF THHE STUDY To study profile of the company. To study the performance of production department. To study the financial status of the organization. To study the performance of various departments like finance, marketing, human resource, etc.

SCOPE OF THE STUDYThe study was conducted in HANNA SOFT DRINKS, Kanhangad, the study gives a fair idea about strategic implemented by the company for its products. The study can be taken as a basis of similar studies by other ventures in this field.

METHODOLOGYPRIMARY SOURSESSome data is to be collected by conducting direct interview with staffs and rest of that from my experience in this concern.

SECONDARY DATAThe main secondary sources which I used are, company records, journals, magazines, newspapers, company manuscripts, etc.

LIMITATIONSDetailed study cannot be conducted due to time constraints. Comparative study with other soft drink companies could not be conducted due to the time constraints.

CHAPTER 3

ABOUT THE COMPANY3.1(COMPANY PROFILE)

COMPANY PROFILEName of the firm Date of commencement Brand name and Trade mark Registered in Promoter Managing director Location :AL MAN HAL ENTERPRISES : 01-oct-2001 : HANNA : FPO (Food Product Orgn.) : K.Muhammed Kunhi : Mr. Ashif : Kallomthol (parappally),

Kodom, Beloor Panchayath, Kanhangad, Kasaragod. Head office Numbers of officers Number of workers Number of supervisor Nature of business pet soda and aerated water. Insurance : United India Insurance Company : Bangalore :8 : 17 :1 : manufacturing soft drink

ORGANISATION CHART(Flow of Authority)

MANAGING DIRECTOR

PURCHASE AND PRODUCTION MANAGER MARKETING MANAGER HUMAN RESOURCE MANAGER FINANCE MANAGER

SUPERVISOR

DISTRIBUTION AGENT

ACCOUNTANT

WORKERS

ABOUT THE COMPANY:AL MAN HAL ENTERPRISES is a famous soft drink industry in Kerala. HANNA plays an important role in the customer market. HANNA soft drinks are important sources of income and it is an employment opportunity for the rural people who are unemployed. The firm was started on 1st October 2001 as a partnership with two partners, and then converted in to the sole trading concerns. The building was

constructed on 1998 December first week. AL AMN HAL ENTERPRISES mainly manufacturing three products, they are soft drinks, pet soda, and aerated water. The company formed under SSI Act 1951 and registered in FPO(Food Product Organization, Chennai ). AL MAN HAL the company name derived from the Arabic word, it means wide like ocean . The Product name HANNA is also from the Arabic word that means Divine food .

CAPITAL STRUCTURE /INITIAL INVESTMENTMr. Muhammed Kunhi is the promoter of the company. The firm was starting with an initial investment of Rs one crore. The firm have got industrial subsidy Rs 6,00,000/- from the Government. Rs 60 lakh is the contribution from the partner at 60:40 ratio. And rest of the amount is loan from KFC and Punjab National Bank.

PLANT LOCATIONIt is concerned with the function of determining where the plant should be located for maximum operating efficiency and effectiveness . The firm is located in Kallanthol, Parappally: 6 Km away from Kanhangad. This place is only 4 Km away from NH 17 in Mavungal junction. This site is selected because of the availability of the facilities like labour, market, transportation, water, waste disposal system, availability of power, etc.

OBJECTIVES OF THE FIRM Profit maximization through customer satisfaction. Reduced customer complaints. Utilization of modern machinery. Giving employment opportunity.

MISSION OF THE FIRM Providing healthy drink to the society. providing quality products at affordable price in on time. Always care on customer health. Providing employment opportunities to local people. Work for social developments.

VISION OF THE FIRM Build fully automated technology. Market expansion program all over in south India. New product development. Dominate the soft drink industry.

SWOT ANALYSISSTRENGTHS: High demand in rural area. Consumer approach. Quality products. Commission and discount scheme. Time supply. Location. Efficient workers.

WEAKNESS Law production capacity. Semi automated plant. Increase of production capacity. Market expansion

THREATS Competition from global soft drink industry. Complementary schemes of competitors.

FUTURE PLAN OF THE FIRMFirm likes to enter toilet soap manufacturing industries. Company has idea for start to make bottle cork, perform and laminated box with in the firm. The management have been planning for taking these steps.

PLANT EXPANSION PROGRAMEFirm likes to expand its plant with fully automated technology and also increase the production capacity. For that purpose, company took land in front of the current plant location.

CHAPTER 3

ABOUT THE COMPANY3.1(PRODUCT PROFILE)

INTRODUCTIONSoft drink industry is an one of the most competitive field business. We have well known about other brands like coca-cola, pepsi.co, etc. HANNA is an growing soft drink company in south India. All products which produced by HANNA has shown growing profit curve. It simply means, all products which produced by HANNA is enables to keep consumer expectation.

PRODUCTS WHICH OFFERED BY HANNA are,The AL MAN HAL Enterprises mainly producing three products. They are;1. SOFT DRINK

y LEMON FLAVOUR y ORANGE FLAVOUR y COLA2. PET SODA 3. AERATED WATER.

CHAPTER 4

DEPARTMENTAL STUDY

DEPARTMENTAL STUDY

PURCHASE DEPARTMENTCHAPTER 4.1

INTRODUCTIONpurchasing is an art. A wrong purchase increases the cost of materials. Therefore the function purchasing should be effectively and efficiently performed. An efficient purchasing ensures the procurement of materials of the right quality, in the right quantity, at the right time, from the right sources and at a right place. The firm has no separate purchase department. Production manager controls the purchase.

PURCHASE PROCESSAll purchases are made from a selected suppliers based on their ability to supply and past performance. All the purchases are made after assessing the availability of stock in the company. List of the selected suppliers are maintained by the purchase manager. List of the selected suppliers are maintained by the purchase manager. Purchase is also made from other than selected suppliers in the case of emergencies. Such purchases are accepted after detail inspection. Suppliers are evaluated based on their ability to supply organizations requirements. Most of the raw materials are directly purchased from the manufacturer and some of the items are purchased from agents.

PURCHASE PROCESSRECEIVING PURCHASE REQUISITION.

INVITING QUOTATIONS AND TENDERS.

SELECTING SUPPLIERS

PLACING PURCHASE ORDER

RECEIVING OF MATERIALS

INSPECTION OF MATERIALS CHECKING INVOICE AND MAKING PAYMENT

PURCHASE ORDER SL.NO ITEMS DESCRIPTION QTY MATERIALS FORPRODUCTION DATE OF DELIVERY

1 2 3 4 5 6

Sugar Citric acid Carbon Hi flow Essence Food Preservative Filter paper BOTTLE MATERIALS

Bag Kg Kg Kg Litter number

1 2 3 4 5

Preform Caps(water, per soda) Label(lemon, orange, cola, water, soda) Empty bottle(green, white) (2litter, 1litter, 500ml, 300ml)

GMno.

RAW MATERIALS DETAILSThe quality of products mainly depends on the quality of raw materials. Firm give extreme care while selecting the raw materials used for making used for making the products. Firm bas trusted suppliers for different type raw materials.

RAW MATERIALS USING IN SOFT DRINKS Essence Citric acid Refined sugar Co2 Hiflow powder Carbon Filter paper Label Case box / Laminated paper Perform

RAW MATERIALS USING IN PET SODA Water Co2 Perform Cork

Label Case box

RAW MATERIALS USING IN AERATED WATER Water Preform Cork Label Case box

RAW MATERIALS IN BOTTLE Preform

Bottle 2 Litter 500ml 300ml

Type 52 gm 26 gm 23 gm

Cork Label

COST OF BOTTLE MATERIALSTYPE PERFORM PRICE LABEL PRICE CORK PRICE

2 liter& 1.5 ltr Rs 5 /piece 500 ml 300ml Soft drink and pet soda Aerated water Rs 3 /piece Rs 2.60/piece

35 ps/piece 25 ps/piece

15 ps/piece 65 ps /piece

35 ps/ piece

MATERIAL PURCHASING SYSTEMThe firm follows a systematic material purchasing system. Material stock is recorded in stock register.

ORDERING LEVELOrdering of material on the basis of production. The raw material has long expiry date. So the firm store raw materials for 3 to 6 months except sugar is only for week.

PAYMENT SYSTEMThe firm using DD and cheque for clearing suppliers accounts.

SUPPLIERS CREDIT SYSTEMSuppliers are giving maximum of one month credit period.

SUPPLIERS OF RAW MATERIALS

NAME OD RAWMATERIALS

NAME OF SUPPLIERS

Citric acid, hi flow powder,carbon

Mahaveer chemicalsBangalore

Essence Refined sugar Co2 Filter paper Cork & perform Label Laminated paper

Das enterprise Bombay Tender Agent , Mangalore Keerthi aerated products,Goa

Purchasing from Bombay Purchasing fromHyderabad & Bombay

Swamy offset , Sivakasi Madras

CAPTER 4.2

PRODUCTION DEPARTMENT

INTRODUCTIONProduction is a process by which goods and services are created. It is considered to be crucial role in any industrial organization. In the production process raw materials are converted in to finished products. The production system receives input in the form of raw materials, capital, utilities and information. These inputs are converted in to desired products and services. Workers, material and machineries are used for converting inputs in to outputs. A firm follows a clear and systematic production system. The production quantity varies as per the demand.

THE AL MAN HAL Enterprises produces three types of products the are;

Soft drinks Pet soda

Aerated water

PRODUCTION PROCESSMOTOR M O T O R CARBON FILTER CARTRIDGE FILTER CO2 SUB TANK

BORWELL

TANK

MICRON FILTER

SAND FILTER

ULTRA VIOLET FILTER

AGITATOR TANK ESSENCE TANK CARBONA TOR

CHILLING TANK

CANDYMAN FILTER

ESSENCE TANK

AIR

VOLUMETRIC MACHINE

CONVEYER

FILLING MACHINE

PACKING

LABELING

CHECJING

The production process starts from Borwell. First of all water comes from the Borwell through motor and it goes to the tank. After these water goes to the sand filter by help of motor. Sand filter is used for water filtration purpose. Then the water shifted to the carbon filter. It is another method used for water purification purpose. Next these water moves to the cartridge filter, micro filter and ultra violet filter respectively. These are the filters used also for water purification purpose. After all these process filtered water store in sub tank. The tank contains 5000 liters of water. From the sub tank, water goes through pipeline to the Agitator tank. In this same time on other hand water also move to the chilling machine for cooling process. There is gas cylinder which contains co2. The cold water and co2 directly goes to the carbonator. Carbonator is used for mixing co2 and cold water. Then it moves to the filling machine. Air compressor is used for operating the filling machine. In the agitator tank, sugar and water are mixed and heating. After that it goes to the candy man filter which is used for sugar filtration purpose. Then the water directly goes to the essence tank. Here the essence is mixed. After this process essence syrup moves on the volumetric machine. Then the bottle is kept on conveyers which help to reach filling machine. After that the essence bottle is filled with gas and water. Then corked by workers and it is transferred to the checking department. After checked, label the bottle. The last process is packaging, and then cases are moved in to the store room.

WATER FILTRATION PROCESS

Borwell(water)

tank

Sand filter

Carbon filter

SUB TANK

Ultraviolet filter

Micron filter

Cartridge filter

1. Sand filter:

It is used for water filtration purpose. It contains sand form seashore, black rock chips, and white rock chips. It helps the water purification purpose. Sand is replacing in every year.2. Carbon filter:

It is another method used for water purification purpose. It contains carbon chips and black rock chips. Filter replacing every year.3. Cartridge filters:

This filter is used for the removal of all sediment like sand, silt, rust and other particles bigger than the 5 micron. This filter does not remove bacteria that are smaller in size than this micron rating. This filter is replacing every week. It is working as the security on micron filter. Cartridge filter help to enlarge the life of micron filters.

4. Micron filters: It is the 5 layer filters used for filtering the water. Layer indicates the different size of the filter. It helps for sorting the water. Types of layer: (1) 10 micron, (2) 8 micron, (3) 5 micron, (4) 1 micron. The filter is replacing in every year. 5. Ultraviolet filtering: Water filtering is doing with the help of ultraviolet rays. Ultraviolet light passing through the water, it helps to heating the water and prevents entering the germs in to the water. The filter contains a tube, the water passing on the tube for the purification purpose.

CHILLING TANK

SUB TANK

AGITATOR TANKCANDIMAN FILTER

CO2ESSENCE TANKVOLUMETRIC MACHINE

CARBONATOR

FILLING MACHINE

CHECKING

LABELING PACKAGING

ESSENCE PREPARATION PROCESSAgitator tank:

Agitator tank contains 450 liter water for one batch production. Here 3 quintal of sugar added with 450 liter water. Heating 600 Celsius. Then add 1 cup of Hi flow and 3 cup of carbon powder . then heating 800 Celsius. Hi flow is used for sugar filtration and carbon is used for in order to remove yellow color of sugar.Candy man filters

It is a 12 layer paper filter used for sugar filtration. Paper is like cotton and it remove every batch of production. Water rotates in candy man filter in 2.5 hours.Essence tank

After the candy man process filtered sugar water store in the essence tank for the essence mixing purpose. Essences are adding from this tank like orange, cola and lemon. Before adding essence, the sugar water is cooling from the essence tank.Volumetric machine

It is used for measuring and filling essence syrup in different levels of bottle like 2 liter, 500 ml, 300ml, etc.LITTER 2 ltr. 1.5 ltr 500 ml 300ml

ESSENCE

460ml 350ml 120ml 80ml

Chilling tank

It is used for water cooling process. Water cooling 40 Celsius.Carbonator

It is used for mixing Co2with cold water. Cold water is flowing from chilling tank and gas form separate cylinder. 80 kg gas is used for one batch production.Filling machine

The machine used to filling essence syrup with cold water and co2, which is coming from carbonator. Filling machine is operating by the help of air compressor.

PRODUCTION OF PET SODACO2

SUB TANK

CHILLING MACHINES

CARBONATOR

LABELLING

CHECKING

FILLING MACHINE

PACKAGING

PRODUCTION OF AERATED WATER

SUB TANK

CHILLING MACHINE

FILLING MACINE

CHECKING PACKAGING LABELLING

BOTTLE MAKING PROCESSBottle making function is a supporting function of main production process.

Air compressor Blowing machine

preform rotate machine

PREFORM ROTATE MACHINEIt is the machine with 6 heaters, heating the preform with the help of these heaters. The heaters are arranged in a systematic manner. Heating preform at 2400 Celsius.

BLOWING MACHINEIt is a semi automated machine adjusted as per the preform type. Heating preform passing air into the heated preform for shaping into the bottle.

AIR COMPRESSORIt is used for passing air into the preform for making bottle. 2kg of air used for one bottle.

MACHINE DETAILS:1. Machine for product. The machines needed for production are purchased from

Bangalore, Coimbatore and Bombay. Most of the machines are purchased from smith industries, Bangalore.2. Bottle making machines. Bottle making process is started at 2006. Before that the firm

was buying the bottle preform from Hyderabad and assembled from palakkad. Machine is purchased from Gujarat.

The production capacity of this machine is 600 units per hour. They only produce bottle like 2 liter, 1.5 liter and 500ml green and white respectively. And also 300 ml green.

PLANT DESIGNLAYOUT: it refers to the proper arrangement of the various machineries, equipments, production facilities and employee amenities-in a factory for getting maximum benefits by eliminating wastage of money, effort, efficiency and materials. There are four types of layout-process layout, product layout, group layout and fixed position layout. The firm adopted product layout. Where the equipments are arranged as per the sequence of operation required to manufacture a particular product. The layout is designed by Smith Industries Bangalore.

PRODUCTION CAPACITYFirm is making product as batches. The maximum production capacity in day is 4 batches. Normally the firm is producing 2 batches. It is varies based on the demand of products. One batch takes 4 hours for production. The number of bottles in the one batch is on the basis of volume of the bottle.

If produce 2 liter bottle in a batch-contains around 1000 bottles. If produce 1 liter bottle in a batch-The batch contains around 1300 bottles. If produce 500ml in a batch-The batch contains around 3750 bottles. If produce 500ml bottle in batch-The batch contains around 5625 bottles.

MATERIAL HANDLING EQUIPMENTSMaterial can be moved from place to place manually or mechanically. Manual movement of material is the easiest. But mechanical handling is generally used by industrial establishments. Usually there is only one equipment is used in production department. It is called conveyers. Conveyers are powered device generally used for moving uniform loads continuously from point to point over a fixed path.

TYPES OF PLANTHANNA is a multistoried or vertical building. There are only 2 floors. There are adequate steps for the movement.

SOURSES OF WATERIn the beginning stage firm was using the well water up to the2002. After that the firm has been using Borwell water.

WATER REQUIREMENTSThe firm using Borwell water for production. Maximum 5000 liter water is required for daily production.

ESSENCE OF MIX STORAGEThe maximum storage period of essence mix in 48 hours and minimum period is 1 hour before production. Product life is 6 months.

POWER REQUIREMENTSFirm is using power from the separate transformer. That is provided by KSEB as per the minimum guarantee system. Firm have a generator. It is using power break time. Production process can continue with the help of the generator.

BATCHProduct is producing as batches. Every batch has batch number including manufacturing date. It is used for product identification.

MAINTAINANCEMaintenance is the set of activity which helps to keep plant, machineries and other facilities in good condition. The firm follows corrective maintenance. Corrective maintenance is just like repairs. Repairs are made after the equipments are out order. Corrective maintenance occurs when there is a work stoppage because of machine break down. Employees are trained for the maintenance work. They can do the machine operations in the smooth manner. Machines are servicing in every year.

DEPRECIATION POLICYDepreciation denotes fall in the market value of fixed assets due to various reasons. Firm adopted written down value method.

WASTE DISPOSALThe firm has a provision for the disposal of waste. For the disposal of waste facilities are available near to the plant. There is a small tank for dumping of solid waste such as bottle etc., and there is a separate tank for paper waste. The liquid waste is going outside tank through pipe line and it going to be dry.

DAMAGEThe product damage noticed 5%and raw material damage at 2%.

STORAGEThe firm has a storage capacity of finished goods is 6000 case at a time. The maximum stock level of the firm is 6 days supply.

POLLUTIONThe firm gives more important to the pollution free environment. So the company try maximum for avoiding pollution. So firm more care about waste disposal system

PRODUCTION COSTThere are the costs associated with production of goods. Cost of production include direct material, direct labor, direct expenses, factory overhead, and office and administration overhead.

Soft drinks(lemon, orange, cola) type2 litter1.5 liter 500ml 300ml

Cost(in RS.)25 24 12 6

Pet sodatypeCost(in RS)

1.5 litter 16 500ml 6.50

Aerated watertypeCost(in Rs)

1 litter 6

CHAPTER 4.2

QUALITY TECHNIQUES

QUALITY ENSURING TECHNIQUESOne of the major achievements of an efficient industry is the ability to mass production of goods with uniform quality at reasonable cost. In recent years poor quality bas been causing problems to the industry owners. Quality control has therefore become highly relevant. So the firm always cares about the quality of the products. Quality refers to the sum of the attributes or property that describes the products. It is the high bolding feature of the modern market. Modern market is highly competitive. The existence of product is very difficult especially in the food industries. Customer has great awareness of their health, who can make the product differently with high quality they can survive

the market . so the firm always cares about the quality of the product. Inevery stages of production process it is doing very systematically and also great about the quality of raw materials using for production. Different quality measuring techniques are using in different stages of production, those are 1. BRISK METER / REFRACTOR METER

It is using for testing the sugar level of the product. It helps tokeep the sugar in an accurate level.

Normal sugar level of the products Product Cola Orange Lemon 11 11 12 level

If the sugar level is noticing higher or lower than the normal point, it is re-leveling into the accurate level from volumetric machine.

2. TOTAL QUALITY MANAGEMENTThe quality management is implementing in therefore ensuring the quality of the product. Employees are participating in quality measurement. It is also implemented in raw materials purchasing system. Every employee has their role in TQM.

3. PH METERIt is used for checking purity of water. The normal PH value of pure water is 7 . Filtered bleaching powder is used for purity purpose.

4. CALIBRATION METERIt is another meter for using to check the purity of water.

5. INSPECTIONPeriodic inspection is conducting by the food inspector and factory inspector without prior information. Inspection is also conducting under FPO for ensuring of the product.

6. SAMPLE KEEPINGFirm always keeps a sample product from every batch for 6 months. The purpose of this sample is to ensure the product will not damage within 6 months. Because of the life of product is 6 months.

CHAPTER 4.3

MARKETING DEPARTMENT

INTRODUCTIONMarketing is all around us. In one form or another. It is very close to every individual. Good marketing is become increasingly vital ingredient for business success. Marketing is the human activity directed at satisfying need and wants through an exchange process.

IMPORTANCE OF MARKETINFinancial success is mostly depends up on marketing ability. Finance, accounting and other business functions will not be really matter if there is no sufficient demand for the products and services. Better marketing will be the result. , marketing manager must make major decisions such as features to design in to a new product, what price to offer to customers, where to sell product and how much to spend on advertising or sale.

MARKETING MIXMarketing mix is the combination of strategy and process adopted for customer satisfaction. Marketing mix involves four element, these are otherwise known as 4 P s. (Product, price, place and promotion).

PRODUCTA product is something that is produced by the factory and sold in the market . A product is a set of tangible and intangible attributes, including packaging, color, price, manufactures prestige, retailers prestige, and manufactures and retailers services which the buyer may accept as offering satisfaction, wants or needs. Consumers are the king of modern market. Every company is look to make the customer satisfied goods. Who can make the better products based on the customer satisfaction, they can survive the market.

PRODUCT DETAILSSoft drinks: soft drinks are in three flavors, orange, cola and lemon. Pet soda: it is the combination of water and soda. Aerated water: it is the drinking water.

PRICING Price is the money value of the goods and servicesPrice is very important to both the buyer and the seller. The buyer always wants to buy at a very low price while the seller always desires sell at a high price. Only when both of them agree at a particular price, exchange of goods and services take place.

PRICING POLICYThe firm is following the cost plus pricing. Under this method, the price is fixed to cover all costs and pre-determined percentage.

PRODUCT PRICE SOFT DRINKS (LEMON, COLA, ORANGE)TYPE

COST Rs. 25 Rs. 24 Rs. 12 Rs. 6

2 litter 1.5 litter 500ml 300ml

PET SODA TYPE 1.5 liter 500ml COST Rs. 16 Rs. 6.50

AERATED WATER TYPE COST

1 litter Rs.6

DISTRUBUTION CHANNELSThe firm has been following three types of distribution system. COMPATY COMPANY COMPANY

RETAILER

WHOLESALERS

AGENT

CUSTOMER

RETAILERS

WHOLESALER

CUSTOMER

RETAILER

CUSTOMER

COMMISSION AND PROFIT MARGINS OF AGENT AND WHOLE SALERS SOFT DRINKSTYPE2 litter 1.5 litter 500 ml 300 ml

DISTRIBUTION PRICERs. 38 Rs. 33 Rs. 15 Rs. 8

MRPRs.43 Rs.38 Rs.18 Rs.10

PET SODA TYPE1.5 litter 500 ml

DISTRIBUTION PRICE Rs.18 Rs. 7.50

MRP Rs. 25 Rs. 10

AERATED WATER TYPE 1 Box(12 pieces DISTRIBUTION PRICE Rs. 80 MRP Rs. 90

Wholesaler and Agent CommissionThe firm is providing commission to the wholesaler at 5 % to 10% and agent at 10 to 15% on the base of distribution price.

PROMOTIONPromotion consists of those activities that are designed to bring a company s goods or services at the favorable attention of customers . The promotion mix includes for the elements, namely, advertising, public relation, personnel selling and sales promotion. In the firm, promotional activities include;

Sales promotionThe firm adopts trade promotion. Success in sales depends on the whole hearted co-operation of middleman. The firm giving price deals, free goods, buying allowances, etc,. The free goods are like bags, calendar, diaries, clock, pen, boxes and T-shirts, etc,.

AdvertisingAdvertising is another element of promotion mix. In today s competitive business world marketing has become impossible without advertising. It plays a vital role in the process of moving goods from the producer to the customer. It helps the customer to

pick up the products that suit his taste among a variety of products. The firm spends Rs. 1, 00,000/- per year for advertisement.

CAPTION: quench your thirst with HANNA

Firm have been giving their advertisement in following Medias,

y TELEVISION Visual Medias are the mass advertising area. Customer can easily understand about the process through visual medias with the help of the product adds. It is the best way of presenting about the product. A customer is attracting on ads. Modern market id consumer oriented, so most of the companies are spending crores of rupees in advertisement. The purpose is presenting the product features in a nice and attractive manner to the consumer. y y y y y Theater News paper Magazines Publicity program Banner

MARKETFirm sell their product mainly 3 districts. Kasaragod, kannur, and wayanad.

EXPORTThere is no export.

ADVERISEMENT AGENCYAdvertising agency of HANNA group is located at Calicut.

MARKET SEGMENTATIONFirm adopted geographical market segmentation. This is refers to the grouping of customer according to their geographical location.

PACKAGING: Company makes bulk packaging. Packaging is moreconsidered for product protection.

TYPE2 litter 1.5 litter 500 ml 300 ml Pet soda

1 CASE9 piece 12 piece 24 piece 30 piece 16 piece

COMPETITORS:We know that, this is really a competitive world. HANNA is a growing soft drink company. We have well known about other global soft drink giants, some of these are Pepsi Coca cola Mountain dew , etc,. Other local companies likes, Bindu, Neethu, Joy sip, etc.

These are the main competitors of HANNA.

GROWTH IN SALES:5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2007 2008 2009 2010 soft drinks pet soda aerated water

CHAPTER 5

HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE DEPARTMENTHuman beings are the key resource of an every organization. The success of any organization depends on the efficiency with which its resourses are managed. It s all resource are ultimately managed by human beings. Identifying the right man for the right job is a crucial element for success. HR department basically aims at contributing human efforts through personnel employed in the organization towards achieving the objective the organization, and these should come out willingly with dedication and high degree of morale among the employees. Human resource department opens channels of

communication to build trust and commitment. Its policies are goal oriented with participative style.

Working Time: 8.30am to 5.30pm Manpower Details: Number of employees: 26 Male Female : 16 : 10

TYPES OF WORKERSSkilled workers :6

Semi-skilled workers: 9 Un-skilled workers : 11

EMPLOYEES LOCALITYMost of the employees are from local areas.

RECRUITEMENTRecruitment is the process of searching for prospective candidates and stimulating them to apply for the job in the organization. The company using external sources for the recruitment process Advertisement Recommendation If any vacancies arise in the organization, it is advertising in the news paper and call for application. Firm always forces to apply the right person for the right job.

SELECTIONSelection is the process of identifying the most suitable and promising candidates from the list of recruited person.

PROCEEDURE FOR SELECTION

Scrutiny of applications Interviews Final selection Placement TrainingTRAININGTraining means to impart information and skills through instructions. It is the method of increasing the knowledge, skills and aptitude of an employee for performing a particular job. There is no such training for managers or to the office workers. But induction training is given to the employees. The method used in organization is on the job training. The workers are trained by their supervisors within the organization.

ELIGIBILITY FOR APPOINTMENT One must be a citizen of India and must have attained 18 years of age. One must be sound health, active habits and free from bodily defects or infirmity rendering him unfit for the post. One must satisfy the appointing authority of his character.

AGE LIMITMostly young employees are preferred for plant. The upper age limit of the employees is 40 years in plant.

TIME KEEPING SYSTEMA systematic record is following in the firm. Master role is used for recording employee s attendance.

LEAVE RULESFirm gives most of the Sundays and festival days are as holyday. So that, there is no other casual leave. Sick leave is allowing on the basis of employee s health.

ABSENTEEISM AND LABOUR TURNOVERThere is no absenteeism and labor turnover because the workers are get enough satisfaction from their job. In most of the case management interested in knowing workers grievances and they take remedial measures to solve this problem.

GRIEVANCE HANDLINGMD has a direct relationship with every employee. If employees have any dis-satisfaction of their work, they can directly inform that to

the MD. The MD is always enquiring the work satisfaction of employees and he should solve the employee s problem.

PAYMENT SYSTEMThe organization is keeping minimum wage policy. Time wage systems are following the organization. Piece wage system is for bottle maker and other are in time wage system. Monthly salary is given to the office staff and other workers.

SALARY INCREMENTManagement is increasing the employee s salary in every year as per the profit margin.

PERFORMANCE APPRAISALSupervisor will evaluate the performance of employees.

LABOUR MANAGEMENT RELATIONSHealthy relationship between employees and management are in the firm.

BENEFITS Monitory benefits; In the HANNA, management provides bonus and incentives in order to reduce their work. Fringe benefits; Workers get uniform, canteen, dressers, etc,. Retirement benefits; There is no such benefit till now.

SAFETY MEASURESThere is adequate lighting and ventilator and also safety measure against the fire. Glues, masks, dresses are using safety purpose.

MOTIVATIONEmployees are getting maximum freedom in organization. They are involving in all activities of the firm. They are highly motivated people. Management is protecting the employee s rights and needs. Employee s ideas are considered for achieving the organization goals. Management using Y Theory for motivation.

WELFARE ACTIVITIES Canteen and rest rooms Safety and health measures Providing uniforms Sick leaves National and festival holidays Bonus is giving at 3 times in a year

BEHAVIOUR ASPECT OF THE EMPLOYEES Initiative Willingness Punctuality Discipline Commitment Relationship with others.

CHAPTER 6

FINANCE DEPARTMENT

INTRODUCTIONFinancial management is that managerial activity which is concerned with planning and controlling of firm s financial resources. The participating managers are interested in this subject because among the most crucial decisions of the firm are those which related to finance and an understanding of theory of financial management provides them with conceptual and analytical insight to make those decisions skillfully. Financial management is always thinking how we can use our money for getting maximum return and for achieving the organizational goals.

FINANCIAL YEAR: APRIL-MARCH CAPITAL STRUCTURE OR INITIAL INVESTMENTThe firm was starting with an initial investment of Rs.1 crore. The firm got industrial subsidy Rs.6 lakh from the government. Rs.60 lakh is the contribution from the partners at 60:40 ratios. And rest of the amount is loan from KFC and Punjab National Bank.

ACCOUNTING PROCEEDURESa) DAY BOOK It is used for recording the daily transactions.

b) PURCHASE DAY BOOK It is used for recording the purchase details. It includes all customers transactions. c) SALES DAY BOOK It is used for recording raw material purchase details. It includes all suppliers transactions. d) LEDGER It is used for recording in a separate account. e) STOCK REGISTER It is used for recording raw material details. Purchase and production details of the raw materials are recorded in these books. f) PRODUCTION REGISTER It is like a stock register. Finished goods details are recorded in this book. The produced quantity of finished goods and how quantity is going for sales, all details are recorded in the production register. g) CREDITORS DAY BOOK It is used for recording creditors details. h) PAY ROLL It is used for recording employees remunerations payment details. i) SALES RETURN BOOK It is used for recording the sales return of the product.

j) PURCHASE RETURN BOOK It is used for recording the purchase return of the product. k) DEBTORS DAY BOOK It is used for recording debtors details. l) BANK REGISTER For recording transaction related with bank. m) TRIAL BALANCE It is used for verification purpose. It helps to check the accuracy of the accounts. n) MANUFACTURING TRADING AND PROFIT AND LOSS ACCOUNT It shows the financial result of the business. It is preparing based on the trail balance. o) BALANCESHEET It is preparing at the end of the financial year. It shows all asset and liability of the business. p) BUDGET PREPARATION The company is preparing the budget in two returns. That is for annual budget and monthly budget. The company is operating the business based on this budget. q) AUDITING Company follows the annual auditing system with the help of chartered accountant in Kasaragod.

r) BAD DEBTS The company had 40 % bad debts in the first two year. Most of them are in hotels. Now the company follows the strict credit policy. Currently the company has 2% bad debt. s) WORKING CAPITAL Cost of sales y Telephone y Transportation y Carriages y Commission y Discount y Wages y Food and accommodation

MANUFACTURING AND TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31-3-2010.

PARTICULRSOPENING STOCK ADD: PURCHASE

SCHEDULES

RS. 3489658 4850858 8340516

LESS:

CLOSING STOCK

3589658 4750858

ADD: DIRECT EXPENSES

F

1473869 6224727

LESS: SALES GROSS PROFIT LESS: ESTABLISHMENT EXP. G

8808955 2584228 2198858 385370

ADD: INVESTMENT SUBSIDY WRITTEN OFF PROPORTIONATELY

74482

NET PROFIT

459852

Note-above mentioned figures are not correct figures; these are estimated on thebasis of previous year financial statements.

CHAPTER 7

FINDINGS AND SUGGESTION AND CONCLUSIONS

FINDINGS ONE OF THE UP COMING COMPANY in upper Malabar. Main problem of this company is, lack of production capacity. They are using only less promotional activities. Good quality products. Lack of market expansion. Semi-automated plant. Lemon and orange flavored soft drinks are most movable product so they should have to give more concentration to the cola. Lack of distribution of products- distribution is only in five districts in Kerala. I could understand that, they are more conscious to keep their product in good quality. Dedicated workers.

SUGGESTIONS More promotional activities are needed. The company cangive the product awareness through advertisements.

In my view, the company should have to implementprofessional management system.

Conducting of market survey will help the company to knowabout their current standings.

Innovative sales promotion activities are needed. Publicity is also will be a usable thing to create demand.Pepsi and coca cola are sponsoring for charity works.

Have to expand the widening of distribution channel. As compared to the other well known soft drink companies,the label design needs to become attractive.

HANNA is a product of India, so the peoples will have somemental attraction to this product, so the management should have to create like these types of Advt. policy for attracting the customers.

CONCLUSIONSThe product has a high demand in Malabar area especially in Kasaragod district. So the company wants to be exaggerating their market all over the south India. Another thing is that, the product demand is high but the company can t produce as per the market demand. So the company wants to be expanding the production capacity with fully automated technology. The company can get more market share by expanding their distribution channel over the south India.

BIBLIOGRAPHY

WIKIPEDIA.COM GOOGLE SEARCH

Reference Marketing management Philip kotler and Kevin lane Keller Personal management C B Memorial and SV Gankar Financial management I M Pandey

Production management K Ashwathappa and K Shridhara Bhatt.