Report 1

148
INTRODUCTION

Transcript of Report 1

Page 1: Report 1

INTRODUCTION

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Chapter 1

INTRODUCTION

Organization definitely is the backbone of the management and without its proper care at the

higher, middle and lower level of administration, it would be practically impossible for any

management to run the show smoothly. It is a means by which problems of the enterprise connected

with policies, operations and administrations can effectively be solved. Sound organization can

contribute greatly to continuity and success to the enterprise.

Management is one of the prominent professional courses in the Twentieth Century. When we

consider Management as a profession it is imperative that the product of the management education

would be a management professional. Management as a subject can be taught in the classroom, but

apart from the theoretical study the student also requires practical knowledge and experience, which

can be achieved only through continuous exposure. The purpose of including such an

Organizational Study in the management education is to satisfy this need. This gives students the

practical experience and knowledge about major functional areas in management, their working,

interlinking, inter departmental conflicts, etc.

All the students of MBA of the Mahatma Gandhi University on the completion of the First Year are

to take up a one month of ORGANIZATION STUDY in an organization of their choice. This study

is focused on principles, techniques and the strategies in use .i.e. to gain first hand information

about how an organization is being run.

To familiarize myself with the different Functional divisions, their coordination, control activities,

etc. of an organization I have chosen NITTA GELATIN INDIA LIMITED formerly known as

KCPL (Kerala Chemicals and Proteins Ltd), Panampilly Nagar, Ernakulam , for my Organizational

Study. NITTA GELATIN INDIA LIMITED (NGIL) is a multi product and multi location company

in the joint sector promoted by KERALA STATE INDUSTRIAL DEVELOPMENT

CORPORATION LIMITED (KSIDC), in collaboration, both technical and financial with NITTA

GELATIN Inc., Japan(NITTA) and MITSUBISHI CORPORATION, Japan(MITSUBISHI). It

enhances customer confidence through a better quality product and better public services.

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1.1 OBJECTIVES

The study, inter-alia, focuses on the following:

To study organisational profile of Nitta Gelatins’ Ossein Division.

To understand the process of organising people and groups to carry out the set

plans.

To understand the pattern of departmentalisation existing in the organisation.

To study the organisational culture.

To perceive the ideas of corporate governance employed in the organisation.

1.2 SCOPE

This organizational study aims at generating a practical awareness of the functions and management

of the company NITTA GELATIN INDIA LIMITED. The study covers a general understanding of

the organization, its culture, departments, and its business activities.

1.3 METHODOLOGY

This part explains how various information about the organization were collected.

Primary Data: Primary data were acquired mainly through direct observation of various functions

in the organization and through interaction and communication with the concerned Department

Heads and officials of the organization

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Secondary data: These were obtained from the official documents of the organization such as the

annual reports, records and other Department manuals. Good amount of information were obtained

also through the website of the company and other related sites.

1.4 WHY NITTA GELATIN INDIA LIMITED [NGIL]

NGIL is a fairly large organization having all functional departments that need to be studied

in this organization study.

NGIL is a company with a very stringent code of business ethics, both in paper and in

practice.

NGIL is a very successful Indo-Japanese industrial venture, having success stories

continuing in decades.

NGIL is managed by a professional team.

NGIL is exploring the possibilities of offering value added products to new markets and

new customers

NGIL has imbibed a Japanese Culture in all spheres of activities

NGIL keeps growing in most competitive gelatin market, as it continuously updates and responds to the changes in consumer preference.

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INDUSTRY PROFILE

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Chapter 2

INDUSTRY PROFILE

2.1 GELATIN

Gelatin is produced from Collagen which is a main protein found in animal skin and bones. The raw

materials are first carefully selected and refined and extracted. Gelatin is thus made up of extremely

pure protein. Gelatins are of three grades – (edible, pharmaceutical, and Photographic.)

2.1.1 GELATIN IN FOOD INDUSTRY

There are many versatile uses for gelatin in modern food production. The main reason for this is its

unique ability to react under heat. Gelatin melts at 37 degrees Celsius and becomes firm again when

it cools down. Its pleasant eating properties make it irreplaceable for the food sector.

Just by the way, gelatin is a source of high-quality protein, low in calories, free of cholesterol and

sugar and containing practically no fat. It is easy to digest and completely broken down by the

human organism. On top of that, gelatin has hardly any potential for causing allergies.

Many half-fats, low fat or light products would not be possible without gelatin. Whether half-fat

margarine or butter, low-fat pates or reduced-fat cheeses – gelatin is used everywhere. It is neutral

in taste, binds large quantities of water, forms gels and gives food that “great mouth feels”.

Sweets

Edible gelatin is indispensable for gummy bears, wine gums, jelly babies, chewy toffees,

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marshmallows, marshmallow wafers, liquorices, chocolate marshmallows and many other

treats. It gives them elasticity, the right degree of chewiness and a long shelf life. For light-

as-air sweets, gelatin allows the foam to form and stabilizes it for the transport and storage

of the products.

Baked Goods

A gateau without gelatin? This is hard to imagine. Because gelatin stabilizes the butter

cream and cream filling, makes it easy to cut without collapsing and increases the shelf life.

Industrially manufactured gateaux can be frozen and defrosted without any problems –

thanks to powdered, leaf or instant gelatin.

Milk Products and Desserts

Dairy products are very popular. Gelatin plays an extremely important role in their

preparation and in the development of ever more new varieties. The right dose and the right

type of gelatin ensure creamy-light yogurts or more solid dairy products, such as curd

cheese and kefir. Whether firm or loose and light, gelatin gives creams and mousse desserts

the desired consistency and that pleasant mouth feel. Refreshingly fruity jellies are

transparent and “wobbly” thanks to gelatin.

Meat, Fish and Sausages

In pates and aspic, gelatin ensures a delicious appearance. Many salami or pepper sausage

varieties are protected from drying out with a protective coating of gelatin. In fish products,

gelatin is mainly used in the manufacture of jelly products. Here, gelatin protects against

light and oxygen as well as enhancing appearance. To increase protein enrichment in pates,

ready-meals and other delicacies, special gelatins are gaining in importance.

Drinks

Gelatin also enhances our drinking pleasure. Wines, juices, cider and, in some countries,

beer are subjected to a gelatin treatment to clarify them. In the process, gelatin reacts with

the tannins and bitter substances and absorbs cloudy elements that then sink to the bottom

and can be separated from the drink.

2.1.2 PHARMACEUTICAL GELATIN:

Gelatin is used in myriad ways in the pharmaceutical industry. It is used for the manufacture of

capsules, tablets, and prevents drugs being damaged by air and light. Due to its good compatibility

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with human tissue, gelatin in sponge form is used to treat wounds and as a replacement for blood

plasma in solutions.

Capsules and Tablets

As a component of hard and soft capsules, gelatin protects the drugs against harmful

influences, such as light or oxygen. Soft capsules are mainly used for vitamins and food

supplements while hard capsules are mainly used for medicines. Gelatin helps to keep the

active pharmaceutical agents together reliably and for a long time. Thanks to careful

selection and dosage, even the release speed of active medical agents can be enhanced with

the use of capsules. Gelatin-coated tablets (caplets) are a new technological development.

The external coating with gelatin ensures that patients can swallow the caplets easily and

without any problems.

Vitamin Preparations

Using gelatin, very finely distributed vitamin A and E drops of oil can be converted into a

free-flowing powder that distributes well in watery solutions. Surrounding the vitamins with

gelatin protects the preparation against oxygen and light, and means that it can be kept for

longer periods. The surrounding is soluble in warm and cold liquids. Fizzy vitamin tablets

are just one example of this.

Gelatin Sponges

Gelatin sponges play an important role in dentistry and surgery. The blood-stanching

sponges are completely absorbed by the body’s own tissue while the wound is healing.

Plasma Expanders

In emergency medicine, plasma expanders (blood volume replacements) based on gelatin

are often used where a lot of blood has been lost in order to balance the patient’s blood

volume again quickly.

2.1.3 PHOTOGRAPHIC APPLICATIONS

Silver salt photographic materials consist of up to 15 layers containing gelatin that are coated onto

film or paper. Here gelatin acts as a binding agent for light-sensitive silver halides. Due to their

swelling properties, the developing agents can penetrate the layers and be removed again by

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watering. Gelatin is an important component for this complex layer technique. It has the ability to

form a solution during heating that sets to a gel again on cooling down and can be kept after water

removal. Gelatin’s properties are needed to produce photographic materials such as amateur films,

color paper, graphic films and X-ray films, in industrial volumes. Gelatin is also indispensable for

digital photography. The ink-jet printer paper coated with gelatin guarantees brilliant colors and

clear shapes. This results in prints of the highest quality.

WORLD GELATIN PRODUCTION

REGION GELATIN Prodn in MT

Western Europe 1,22,000

Eastern Europe 6,800

North America 62,400

Latin America 53,500

Asia & Oceania 68,000

Other 2,300

TOTAL 3,15,000

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2.2 MANUFACTURERS

Some of the manufacturers of gelatin around the world are as follows:

GME (Gelatin Manufacturers of Europe)

GMIA (Gelatin Manufacturers Institute of America, Inc).

SAGMA (South American Gelatin Manufacturing Association)

GMJ (Gelatin Manufacturers Association of Japan)

GMAP (Gelatin Manufacturers Association of Asia Pacific)

The main players in gelatin industry are:

GELITA AUSTRALIA PVT.LTD, AUSTRALIA & NZ.

EASTMAN GELATIN CORPORATION, USA.

ATLANTIC GELATIN/KRAFT FOODS GLOBAL INC, USA.

NITTA GELATIN, CANADA, INC

NITTA GELATIN INC, JAPAN.

GELCO, COLUMBIA.

GELTECH CO.LTD, KOREA

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LEADING MANUFACTURERS OF GELATIN IN INDIA

MANUFACTURER LOCATION STATE CAPACITY PRODUCTION PDN. %

NGIL(earlier KCPL) Cochin Kerala 2700 2700 17

STERLING Baroda Gujarat 8000 6000 37

STERLING(earlier

Ralli)

Ooty Tamil nadu 2000 1800 11

RAYMON Baroda Gujarat 2000 1700 11

IGCL Vapi Gujarat 1500 1500 9

NARMADA Jabalpur M.P. 2200 1900 12

C.J. Bhopal M.P. 500 500 3

RAMA Chandigarh Haryana 2000 0 0

TOTAL 20900 16100 100

2.3 SHAPING THE PROSPECTS

Gelatin is a thoroughly natural product. This also explains the special responsibility of the GME member companies to protect human health, nature and environment. What makes more sense than to pursue new paths for improving the quality of life with gelatin?

Functional Food with Gelatin

Today’s consumers are more educated and better informed than ever. They have a strong desire

for healthy and natural foodstuffs. That is why functional food is fashionable. In addition to the

usual nutritional content, these foods have an additional benefit and ensure that the body

receives an optimum supply of vitamins, proteins or carbohydrates, for example. Key health

focuses include energy, bones and joints, intestinal relief and relaxation. New and innovative

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functional food products can be created with gelatin. Foods with gelatin, whether sweet or

savoury, are an ideal source of protein. They contain the amino acids glycine and proline in high

concentrations, and thus have a positive influence on bones and joints. Gelatin is also free of fat

and carbohydrates. And more besides: gelatin strengthens the connective tissue, ensuring shiny

hair and fingernails. It also improves the hydration of the skin and improves the appearance of

wrinkles.

Gelatin in Stem Cell Therapy

The implantation of stem cells in the human body is an opportunity to remove the causes of

disease and to restore health. To breed stem cells, however, they always need a surface to which

they can adhere. Frequently, latex, polystyrene and even glass particles are used for this. The

stem cells are thus implanted together with the substrate. As these materials are not

biodegradable there may be undesirable side effects. Gelatin can also be used as an important

aid in the development of stem cell therapy. It is especially well suited to it because it is

excellently compatible and completely degradable in the body. This new method with gelatin is

considered to be major progress for stem cell therapy. There have already been initial successes

in treating Parkinson’s patients.

Building Renovation without Endangering Health

If asbestos is handled incorrectly the contamination of the air breathed in can rise to several

million carcinogenic fibres per cubic metre of air. When buildings contaminated by asbestos are

being renovated, the contaminated parts are sprayed with a gelatin solution. This creates an

elastic network. The asbestos fibres are not released when removed. The advantage of using

gelatin as a binding agent is that the bound asbestos mixture can be mixed with cement in a

subsequent process. So hard is the resultant block that the asbestos fibres remain permanently

bound and can be disposed of in landfill.

Fighting Oil Disasters

In the near future, gelatin could be of great help in a tanker accident where thousands of litres of

oil pollute the sea. Why? The basic principle is simple: oil and water don’t mix. By adding an

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emulsifier, such as surfactants, we obtain a suspension of oil in water. As a result, little drops of

oil are formed that float in the water. The cold, aqueous phase is transformed into the jelly phase

by the addition of the aggregate gelatin. This results in systems that are stable, capable of being

cut and subsequently stored for a longer period of time. In the event of an oil tanker accident,

any oil spillage could be solidified and cut into pieces, hence warding off an environmental

disaster. So far, all of this has only been tested in closed systems. Forming such a reversible,

solid gel would be much more difficult on the high seas. But modern research into gelatin is

working on this problem, too.

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COMPANY PROFILE

Chapter 3

COMPANY PROFILE

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3.1 INTRODUCTION

NITTA GELATIN INDIA LIMITED

Formerly KERALA CHEMICALS & PROTEINS LIMITED

Registered Office

Post Box: 4262

50/1002 SBT Avenue

Panampilly Nagar

Cochin 682036

Kerala State, India.

Tel: 0484 2317805

Fax: 0484 2310568

Email: ro@ nittagelindia .com

Nitta Gelatin India Limited (NGIL), one of the most successful Indo-Japanese industrial ventures,

was incorporated in 1975 and started commercial production in 1979. NGIL is managed by a

professional team. The Managing Director is appointed by KSIDC and a whole time Technical

Director by NITTA. Through its collaborators NGIL has access to state of the art technology and

process inputs that help the company achieve its global vision.

Today NGIL is one of Kerala’s leading exports company, manufacturing Ossein, Gelatin, and Di

Calcium Phosphate. The company’s exceptional performance in the export sector has also earned it

a Registered Export House status.

3.2 IT’S VISION:

V I S I O N

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To become a premier industry in India with a global perspective, world class standards of efficiency and professionalism and core institutional values.

Reach the position as the leader in Gelatin manufacture in India

Maximise shareholder value through high-sustained earnings-per-share.

Continue as an institution with a culture of mutual care and commitment, a satisfying work environment and continuous learning opportunities.

3.3 BRIEF SAGA OF THE COMPANY

The company was incorporated on 30th April 1975 and began the commercial production (Ossein)

on 1st October 1979 with full-fledged plant at Koratty, Ernakulam Dt., Kerala. The company

acquired its own building (Corporate Office) for administrative purposes in the year 1988 at

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Panampilly nagar, Kochi. NGIL covered an important milestone, when it commenced the

production of Gelatin.

Gelatin Division at Kakkanad, Ernakulam Dt., Kerala started its commercial production on 8 th

March 1999. Through its collaborators NGIL has access to state-of-the-art technology and process

inputs that help the company achieve its global vision.

During 2005-2006 the have successfully faced two every important international regulatory

inspections conducted by USFDA and EDQM. The outcomes of these inspections have given a

further impetus to the further export business of NGIL.

The year 2005-2006 witnessed a further reduction of the Ossein exports to M/s Nitta Gelatin INC,

due to reduced demand of gelatin in the market. However the fact that NGI has already confirmed

an increased off take of Ossein during the current year, indicates the international Gelatin market is

on the recovery path.

3.4 MAJOR MILESTONES

1979 Started Comm. Production of Ossein

1996 Limed Ossein Plant Commissioned

1997 Formed Bamni Proteins Ltd. (a subsidiary company)

1999 Gelatin Plant Commissioned

1999 ISO 9002 Certification

2002 EDQM Certificate of Suitability

2004 Capacity expansion at Gelatin Plant

2007 Further capacity expansion at Gelatin Plant

2008 Further capacity expansion at Gelatin Plant

3.5 IMPORTANT QUALITY CERTIFICATIONS:

ISO 9001-2000 Ossein Division, Gelatin Division

And Bamni Proteins Ltd.

HACCP Gelatin Division & Ossein

Division

EDQM Ossein &Gelatin Division

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Drug Manufacturing License Gelatin Division

WHO-GMP Ossein, Gelatin & Bamni Division

USFDA Gelatin Division

IFANCA &MUI Halal Gelatin Division

KOSHER Gelatin division

Completed European Union Certification Procedures for Gelatin Division.

Poised for ISO 14001 Certification for Gelatin Division.

3.5 BOARD OF DIRECTORSChairman : T. Balakrishnan, IASManaging Director : G. SuseelanDirectors : Norimichi Soga : K. Inoue : T.Yamaki : A.K. Nair : K. Ramakrishnan : K. L. Kumar : Venu NallurSecretary : G.R. KurupAuditors : M/s Varma & Varma, ErnakulamBankers : State Bank of India Canara Bank State Bank of Travancore Axis Bank Ltd. South Indian Bank Ltd.Legal Advisor : M. Pathrose Mathai, Advocate, Ernakulam.Registrar & Share : Cameo Corporate Services Ltd Transfer Agents 1, Club House Road, Chennai.3.6 MANUFACTURING LOCATIONS:Ossein Division: at Kathikudam, (via) Koratty in Trichur district, Pin- 680 308.Gelatin Division: at KINFRA Export Promotion Industrial Parks Ltd., Kusumagiri P.O., Kakkanad, Ernakulam District, Pin- 682 036.Subsidiary: Bamni Proteins Ltd: Dudholi, Near Chandrapur, Maharashtra, Pin- 442 701. 3.7 PROMOTERS:NGIL as we see today is

the effort of its promoters. The chief promoters of NGIL are: NITTA GELATIN INC. (NITTA)The Gelatin division of the multidivisional,

multi product NITTA Group of Japan, NITTA Gelatin Inc. was formed in 1918. The company has five main divisions - Gelatin, Food Additives, Adhesives, Engineering and Research & Development. NITTA has set for itself high quality standards through relentless research, development, and innovation and production technology. All of which have made it the world leader in the Gelatin

market. MITSUBISHI CORPORATION (MC)Japan's largest general trading company, Mitsubishi Corporation handles a vast array of goods and services ranging from telecommunications to tea. MC was established in 1950 and has its headquarters in Tokyo, Japan.

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THE KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD.The nodal agency for the development and promotion of industries in Kerala, the KSIDC is a fully owned company of the state Government. For over 35 years now the Corporation has been giving entrepreneurs professional, technical and financial assistance to set up successful business projects in Kerala.Subsequently, the shares held by Mitsubishi were taken over by Nitta as a result of which Nitta has now become the biggest stakeholder in NGIL. As of now, there are only two Promoters,

i.e., NITTA and KSIDC. COMPANY PROFILE Chapter 3COMPANY PROFILE3.1 INTRODUCTIONNITTA GELATIN INDIA

LIMITEDFormerly KERALA CHEMICALS & PROTEINS LIMITEDRegistered OfficePost Box: 426250/1002 SBT AvenuePanampilly NagarCochin 682036Kerala State, India.Tel: 0484 2317805Fax: 0484

2310568Email: ro@ nittagelindia .com Nitta Gelatin India Limited (NGIL), one of the most successful Indo-Japanese industrial ventures, was incorporated in 1975 and started commercial production in 1979. NGIL is managed by a professional team. The Managing Director is appointed by KSIDC and a whole time Technical Director by NITTA. Through its collaborators NGIL has access to state of the art technology and process inputs that help the company achieve its global vision.Today NGIL is one of Kerala’s leading exports company, manufacturing Ossein, Gelatin, and Di Calcium Phosphate. The company’s exceptional performance in the export sector has also earned it a Registered Export House status.3.2 IT’S VISION:To become a premier industry in India with a global perspective, world class standards of efficiency and professionalism and core institutional values.

Reach the position as the leader in Gelatin manufacture in India

Maximize shareholder value through high sustained earnings per share.

Continue as an institution with a culture of mutual care and commitment, a satisfying work

environment and continuous learning opportunities.

3.3 BRIEF SAGA OF THE COMPANY

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The company was incorporated on 30th April 1975 and began the commercial production (Ossein)

on 1st October 1979 with full-fledged plant at Koratty, Ernakulam Dt., Kerala. The company

acquired its own building (Corporate Office) for administrative purposes in the year 1988 at

Panampilly nagar, Kochi. NGIL covered an important milestone, when it commenced the

production of Gelatin.

Gelatin Division at Kakkanad, Ernakulam Dt., Kerala started its commercial production on 8 th

March 1999. Through its collaborators NGIL has access to state-of-the-art technology and process

inputs that help the company achieve its global vision.

During 2005-2006 the have successfully faced two every important international regulatory

inspections conducted by USFDA and EDQM. The outcomes of these inspections have given a

further impetus to the further export business of NGIL.

The year 2005-2006 witnessed a further reduction of the Ossein exports to M/s Nitta Gelatin INC,

due to reduced demand of gelatin in the market. However the fact that NGI has already confirmed

an increased off take of Ossein during the current year, indicates the international Gelatin market is

on the recovery path.

3.4 MAJOR MILESTONES

1979 Started Comm. Production of Ossein

1996 Limed Ossein Plant Commissioned

1997 Formed Bamni Proteins Ltd. (a subsidiary company)

1999 Gelatin Plant Commissioned

1999 ISO 9002 Certification

2002 EDQM Certificate of Suitability

2004 Capacity expansion at Gelatin Plant

2007 Further capacity expansion at Gelatin Plant

2008 Further capacity expansion at Gelatin Plant

2009 Further capacity expansion at Gelatin Plant

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3.5 MANUFACTURING LOCATIONS:

Ossein Division: at Kathikudam, (via) Koratty in Trichur district, Pin- 680 308.

Gelatin Division: at KINFRA Export Promotion Industrial Parks Ltd., Kusumagiri P.O., Kakkanad, Ernakulam District, Pin- 682 036.

Subsidiary: Bamni Proteins Ltd: Dudholi, Near Chandrapur, Maharashtra, Pin- 442 701.

3.6PROMOTERS:

NGIL as we see today is the effort of its promoters. The chief promoters of NGIL are:

NITTA GELATIN INC. (NITTA)

The Gelatin division of the multidivisional, multi product NITTA Group of Japan, NITTA

Gelatin Inc. was formed in 1918. The company has five main divisions - Gelatin, Food

Additives, Adhesives, Engineering and Research & Development. NITTA has set for itself

high quality standards through relentless research, development, and innovation and

production technology. All of which have made it the world leader in the Gelatin market.

MITSUBISHI CORPORATION (MC)

Japan's largest general trading company, Mitsubishi Corporation handles a vast array of

goods and services ranging from telecommunications to tea. MC was established in 1950

and has its headquarters in Tokyo, Japan.

THE KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD.

The nodal agency for the development and promotion of industries in Kerala, the KSIDC is

a fully owned company of the state Government. For over 35 years now the Corporation has

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been giving entrepreneurs professional, technical and financial assistance to set up

successful business projects in Kerala.

Subsequently, the shares held by Mitsubishi were taken over by Nitta as a result of which

Nitta has now become the biggest stakeholder in NGIL. As of now, there are only two

Promoters, i.e., NITTA and KSIDC.

3.8 SHAREHOLDERS PATTERN OF NGIL AS ON 31.03.2009

SL

NO.

CATEGORY NO OF SHARES

HELD

PERCENTAGE OF

SHAREHOLDING

A PROMOTER’S HOLDING

1. INDIAN PROMOTER

KERALA STATE

INDUSTRIAL DEVELOPMENT

CORPORATION LTD

TRIVANDRUM 2862220 34.07

2 FOREIGN PROMOTERS

NITTA, GELATIN INC, JAPAN 3900300 46.43

SUB-TOTAL 6762520 80.50

B OTHER (INCLUDING PUBLIC) 1637480 19.50

GRAND TOTAL 8400000 100.00

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CORPORATE

GOVERNANCE

Chapter 4

CORPORATE GOVERNANCE

CODE OF BUSINESS CONDUCT ACTIVITIES APPLICABLE TO ALL DIRECTORS, OFFICERS AND EMPLOYEES OF NITTA GELATIN

4.1 PHILOSOPHY

The Core Value underlying NGIL Corporate philosophy is "trusteeship". We believe, this

organisation has been handed over to us by the various stakeholders in 'trust' and we are the

"trustees" of these stakeholders. It is therefore our responsibility to ensure that the organisation is

managed in a manner that protects and furthers the interest of our stakeholders. We recognize

society as an important stakeholder in this enterprise and it is part of our responsibility to practice

good corporate citizenship.

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NGIL is committed to conduct its business in accordance with the applicable Laws, Rules and

regulations and with highest standards of business ethics. This code is intended to provide guidance

and help in recognizing and dealing with ethical issues, provide mechanism to report unethical

conduct and to help foster a culture of honesty and accountability. Each director, officer and

employee is expected to comply with the letter and spirit of this code.

The Directors, officers and employees of the Company must not only comply with applicable Laws,

rules arid regulations but should also promote honest and ethical conduct of the business. They

must abide by the policies and procedures that govern the conduct of the company's business. Their

responsibilities include helping to create and maintain a culture of high ethical standards and

commitment to compliance and to maintain a work environment that encourages the stakeholders to

raise concerns to the attention of the management.

4.1.1 CONFLICT OF INTEREST

All employees, officers and directors must avoid situations in which their personal interest

could conflict with interest could conflict with the interest of the company. This is an area in

which it is impossible to provide comprehensive guidance but the guiding principle is that any

conflict or potential conflict must be disclosed to the higher management or to the concerned

committee of the Board of Directors or to the Board of Directors if there is no committee for

guidance and appropriate action

4.1.2 FRIENDLY WORK PLACE

As good corporate citizens, the employees, officers and directors of NGIL are committed to a

gender-friendly work place in order to enhance equal opportunities for man and women, to prevent

sexual harassment at work place and to guarantee good employment practices. NGIL maintains an

open door policy for report any harassment concerns and is responsive to employee complaints

about harassment or other unwelcome and offensive conduct.

4.1.3 CONFIDENTIALITY

The Directors, officers and employees shall maintain the confidentiality of confidential information

of the company of the company or that of that of any customer, supplier or business associate of the

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company to which company has a duty to maintain confidentiality except when disclosure is

authorized or legally mandated.

4.1.4 FAIR DEALING

Each Director, officer and employee should deal fairly with the customers, suppliers,

competitors and employees of group companies. They should not take unfair advantage of anyone

through manipulation, concealment, abuse of confidential, proprietary or trade secret information,

misinterpretation of materials facts or any other unfair dealings or practices.

4.1.5 COMPLIANCE WITH LAWS, RULES AND REGULATIONS

The Directors, officers and employees shall comply with all applicable laws, rules and regulations.

Transactions directly or indirectly involving securities of the company should not be undertaken

without pre-clearance from the company’s compliance officer.

4.1.6 PROTECTION AND PROPER USE OF COMPANY’S ASSETS

All Directors, officers and employees should protect company’s assets and property and ensure its

efficient use. Company’s assets should be used only for legitimate business purposes.

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PRODUCTS AND ITS APPLICATIONS

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Chapter 5

PRODUCTS AND ITS APPLICATIONS

5.1 PRODUCTS:

Ossein (intermediary product)

Gelatin (edible, pharmaceutical & photographic Grade)

Di- calcium Phosphate

Compound Glue

5.1.1 OSSEIN

The bones are received crushed -- broken into small pieces no larger than one-half inch. Crushed

bone is loaded into wooden tanks, each of which holds greater than 10 tons. The bone is

demineralized by soaking it in Hydrochloric Acid. Demineralized bone is called Ossein, or

collagen. NGIL manufactures Ossein under the technical guidance of NITTA. Besides using Ossein

for the manufacture of Gelatin, NGIL exports its Ossein to NITTA on a buy-back arrangement.

With demand for Gelatin going up, NGIL has stepped up production capacity of Ossein to 7000 MT

and set up facilities to produce 5000MT of Limed Ossein.

5.1.2 GELATIN

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NGIL today is one of the major manufacturers of premium, export quality Gelatin in India.

Functioning in technical collaboration with NITTA, the company has a production capacity of 3300

MT. The special feature of NGIL’s Gelatin is the new concept of offering customer specific

products and solutions.

Product features include:

Consistent quality meeting USP standards

Highly flexible product specifications. Viscosity, Gel strength etc. as per customer

requirements

Prompt and timely delivery

Packaging: 20kg paper bags or bulk bags, palletized and stretch wrapped

Ready for vendor audit requirements

GMP implemented

5.1.3 DI CALCIUM PHOSPHATE (DCP)

NGIL plant has the capacity to manufacture 15000 MT of Di Calcium Phosphate (DCP). NGIL

exercises stringent quality control not only in the selection of raw material but also through every

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stage of production, until the product is finally delivered into your hands. Besides its own research

and quality control facilities, NGIL is uniquely placed to draw on the vast resources of its

collaborators to ensure products of consistently high quality.

Crushed bones are treated with HCL at concentration around 4% for 7 days to remove calcium and

phosphorous. The minerals dissolved in HCL and form mono calcium phosphate and are treated

with lime slurry to form di-calcium phosphate. The concentrated slurry is filtered, dried using hot

air and stored in bin. The material is the packed in 50 Kg HDPE bags with liner.

DCP is mainly used in 4 sectors:

1. Poultry Farms

2. Mineral Mixtures

3. Feed Manufactures

4. Industries (for manufacture of ceramic products)

Di Calcium Phosphate (DCP) from NGIL is already used worldwide in diverse products especially

in Poultry feeds. NGIL’s Di Calcium Phosphate is made exclusively from animal bones and thus

enjoys these critical advantages absent in similar products made from other sources.

Higher content of easily digestible phosphorous and calcium

Better bio-availability of phosphorous

Lower fluorine content

Excellent storage life.

Fine, free flowing, powdery form

No genetic problems on usage

Technical support for farmers and end users.

5.1.4 COMPOUND GLUE

Compound Glue, a Gelatin based adhesive is used in:

1. Case making Machines for hard cover books

2. Box labeling

3. Album labeling

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4. Hard board box files

FEATURES

Higher content of easily digestible phosphorous and calcium

Better bio-availability of phosphorus

Lower fluorine content

Excellent storage life

Fine, free flowing, powdery form

No genetic problems on usage

Technical support for farmers and end users.

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ORGANISATION

STRUCTURE

Chapter – 6

ORGANIZATION STRUCTURE

Organization is the foundation upon which the whole structure of management is built. It is the

backbone of management. The term ‘Organization’ refers to a mechanism which enables men to

live together. In a static sense an organization is a structure manned by group of individuals who are

working together towards a common goal. In a dynamic sense organization is process of welding

together a framework of positions, which can be used as a management tool for the most effective

pursuit of an enterprise. Organization is coordinative and unifying and concerns itself with a well-

planned division of the numerous functions and the devolutions of duties and responsibilities to the

individual executive and subordinate official supported by a rigid system of supervision and

coordinated control, in order to ensure the effective execution of the plans as formulated by those in

administrative authority. Some regard it as a network of relationships, a blue-print of how the

management will like the various functions and activities to be assigned and connected together.

Some others look upon it as a system with inputs (men, materials and machines in cases of

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business), and processes through which these are converted into outputs (e.g.: goods and services,

profits etc.).

6.1 Organization Chart:

The pattern of network of relations between the various positions in an organization as well as

between their persons who hold those positions is referred to as ‘Organization Chart’. Organization

data are often shown in the form of graphic chart. According to Harold Koontz and Cyril

O’Donnell, ‘every organization can be charted, for a chart is nothing more than an indication of

how departments are tied together along their principal lines of authority.’ In the words of George R

Terry, “A chart is a diagrammatical form which shows important aspects of an organization

including the major functions and their respective relationships, the channels of supervision, and the

relative authority of each employee who is in charge of each respective function.”

An organization chart can be drawn in different forms like i) Top down chart, ii) Left to right or

horizontal type of chart and iii) Circular Chart. In the Top-down-chart the major functions are

shown at the top with subordinate functions in successive lower positions. Such type of an

Organizational Chart of NGIL is described below explaining the line of authority and the names of

concerned personnel who hold various responsibilities.

CONSOLIDATED ORG. CHART

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6.2 AUTHORITY LEVELS AND GRADES

LEVEL I - Executive Directors

General Managers

Dy. General Managers

LEVEL II - Asst. General Managers

Managers

Dy. Managers

LEVEL III - Asst. Managers

Sr. Officers/Senior Engineers

Officers/Engineers

Asst. Officers/Foreman

6.2.1 Level I

The Executives in Level 1 will be Divisional Heads who have direct reporting to the Chief Executive.

They constitute the Apex Management Team. All policy decisions are taken only at this level. Each

Functional Head will be responsible for the formulation and implementation of the broad policies relating

to his Functions. The executives in this level will have representation in Performance Review Meetings

(MBO), Management Review Meeting (ISO), Senior Executive Meetings (Policy-making body) and

Divisional Meetings (on subjects related to their functions).

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All the executives in this level are having delegated powers, Administrative as well as Financial,

subject to certain limits prescribed by the MD.

6.2.2 Level II

Executives in this level are in the middle management cadre, who are Functional Heads or

Department Heads. Assistant General Managers/Managers will be having overall control in respect

of the activities relating to the Departments they are heading. Deputy Managers will be basically

assisting the AGMs and Managers in the discharge of their Functions. Only AGMs are having

delegated powers, both Financial and Administrative.

However, the Department Heads may, at their sole discretion, sub-delegate some of the powers

conferred on them, to the Deputy Managers, depending upon their dependability and suitability.

However, the basic responsibility will rest with the Department Head. All the above executives will

selectively have representation in the Departmental Meetings, Division Meetings, Corrective and

Preventive Action (CAPA) Meetings and Daily Meetings.

They will be responsible for implementation of the policies formulated by the top management.

6.2.3 Level III

Executives in this level are in the Junior Management Cadre. They are responsible for the routine

functions related to the operations of the various departments. Basically, they are the linking pins

between the Management and the Workmen category.

No specific powers are delegated at this level as per the Company’s delegation policy. They’ll be

enjoying only sub-delegated powers from their Department Heads, in certain specific functional

areas. They will have representations in the Division Meetings, Department Meetings and Daily

Meetings.

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DEPARTMENTS

AND

THEIR FUNCTIONS

Chapter 7

DEPARTMENTS AND THEIR FUNCTIONS

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7.1 VARIOUS DEPARTMENTS

CORPORATE OFFICE:

MD’s Office

P&A Dept.

Commercial Dept.

Finance Dept.

Secretarial Dept.

Marketing & Business Development Dept.

Divisions

Ossein Division:

o Production

o Central Engineering Services (Maintenance)

o QA/QC

o Stores-General Stores and Engg. Stores

o HR &Administration

Gelatin Division:

o Production

o Central Engineering Services (Maintenance)

o QA/QC

o Stores-General Stores and Engg. Stores

o HR &Administration

o Technical Services

7.2 DETAILED STUDY OF DEPARTMENTS

7.2.1 PERSONNEL AND ADMINISTRATION DEPARTMENT (P&A)

Production is the combined output of the efforts of the big agents, viz., land, labor, capital,

enterprise and management. Although all these factors occupy a significant place in production, yet

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‘labor’ or manpower is the most important. It is the foundation or the edifice of every

manufacturing unit. There may be a mass of land, capital and entrepreneurs, but they cannot

function without the active force of ‘Labor”. That is why it is deemed as an indispensable factor of

production. The following arguments may be added in support of the suggestions for having a

separate department of personnel management.

Job analyzing for aiding management

Reduction in cost of production

Necessity of a contented manpower

Necessity of trained and efficient labour force

Scientific recruitment of manpower

Scientific promotion, demotion, transfers etc.

Cordial subordinate-boss relationships.

It may be remarked that the department of personnel administration and management should be

under the charge of a capable and experienced senior officer of the concern. He may be designated

as the General Manager or Director of the Department of personnel administration and

management. There may be several Deputy Directors/Managers under him for his assistance, who

may be entrusted with different activities and functions, which may be undertaken by the

department of personnel administration and management.

The P&A departmental structure of NGIL is illustrated in the following chart

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Functions of Personal Administration Department

PERSONNEL ADMINISTRATION

Manpower Planning Wage & Salary Admn.

Recruitment Welfare Functions

Selection Social Security Functions

Placement Liaison with Govt Depts.

Induction General Administration:-

Training Repairs & Maintenance of Office Building

Performance Appraisal Vehicle Running & maintenance

Compensation Planning Dispatch of mail

Succession Planning Renewal of Licenses under various Statutes

Industrial Relations Telephones

Discipline and Disciplinary Finalization of Miscellaneous contracts

proceedings Management of security

The following are the important functions of the P&A Department

Recruitment:

Liaison with sources of labor supply

Interview applicants

Tests and Physical Examination

Maintenance of Personnel statistics

Granting of Increments to employees

Training

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Training of new starters, apprentices, employees for transfer and promotion, instructors,

supervisors, etc

Encourage additional education, qualification, and other necessary skills

Work tours

Internal Management

Promotion of employees

Transfer of employees

Demotion

Termination of services

Wages and Salary Administration

Job analysis

Job evaluation

Wages surveys

Employee training

Wage incentives

Profit sharing

Workers participation in management

Industrial Relations

Workers morale and discipline

Labor legislation interpretation

Attending labor grievances

Labor management co-operation

Arbitration

Social security and Labor Welfare

Provision of labor amenities

Implementation of social security legislation

Other social security measures, like provident fund, old-age pension, employees’ insurance,

etc.

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RECRUITMENT POLICY

The qualification and other requirements for recruitment in NGIL are explained in table shown in

the annexure. (Annexure- 2)

Sources of recruitment:

Internal

Promotions from within

Employee Referrals

Routine Applications

External

Employment Exchanges

Professional Institutions(Engg colleges, Business Schools)

References from well-wishers

(other industries, local bodies, State admn.)

ITIs, Supervisory Development Centres, Related Instruction centres

Campus selection

Mode of Recruitment for Freshers:

Written test

Psychological test

Physical Endurance Test

Group Discussions

Preliminary Interview

Final Interview

Pre-Employment Medical Checkup done by Company’s approved medical institution.

Selection is based on the fitness certificate issued by the approved medical institution.

Placement/Induction:

The appointee will report to the Head (P&A) who will brief the appointee regarding the general

information about the Company and introduce the appointee to the concerned Division Head.

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After meeting the Division Head, the appointee will report to the Admn.-in-Charge of the

concerned division where he’ll be required to fill up various forms regarding PF, ESI, gratuity

etc. The appointee will also fill up a joining report form. The Admn.-in-Charge will brief the

appointee on the various procedures to be followed and will direct him to the concerned

Department Head.

Subsequently, the appointee will undergo an induction training programme.Performance

Appraisal:The appointee will be assessed by his immediate superior and the Department Head

while he’s undergoing the Training/probation.

At the end of the training/probationary period, a performance appraisal format will be

forwarded by the P&A Department to the concerned Department. The concerned Department

will do the Performance Appraisal and send back the Appraisal Form to the P&A Dept. with

specific recommendations.

On receipt of the recommendations, the P&A Dept. will process the necessary papers for the

regularization/confirmation/ extension of the training/probation as the case may be. However,

the appointee will be given a feedback on the Performance Appraisal by the concerned Division

Head in the presence of the Admn.-in-Charge, especially upon an adverse remark.

Confirmation:

On completion of the stipulated probation period, the appointee will be confirmed in the service

of the Company in writing.

The confirmation order will be issued by the Head(P&A) and will be served on the appointee

through the Department/Division Head.

In the absence of a Confirmation order in writing, the appointee will continue as a probationer,

till such time the confirmation order is issued.

Recruitment Procedure

Identification of Vacancy by

Dept. Head / Div. Head

Advt. In news paper/ Emp.exchange/

Application blank/ Internal notification

For Trainees

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PROMOTION POLICY:

Up gradation within the Level:

In the normal course up gradation from lower grade to the next higher grade within one level

will be given within a timeframe.

Promotion from Lower Level to Higher Level:

Promotion from lower level to next higher level will be based on the following criteria.

(1) Availability of a position in the higher level.

(2) Suitability of the candidate in terms of experience in the lower level, prescribed

qualification and aptitude.

In case more number of candidates are available for promotion to a post in the next higher level

the promotion will be based on written test and/or interview.

Promotees shall be entitled to an applicable fitment benefit and a promotion increment in the

higher grade.

Final Interview

Medical Check Up

Selection / placement

Induction Training

Written Test/Initial Interview

On the Job Training Regularization of Appointment

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Internal promotions:

To the extent possible recruitment by internal promotions will be resorted to, subject to

availability of suitable candidates with required experience in the lower grade. Promotion will

be based on written test and/or interview. However, recruitment from external sources will be

resorted to if there are no suitable candidates available from within.

Assistant Officer/Foreman grade is the promotion grade for the workmen who are promoted to

Management Cadre.

Direct Recruitment to Management Cadre will be as Officers/Engineers. In case of Fresh Post

graduates in Professional Disciplines and Fresh Engineering graduates, the recruitees will be

imparted on-the-job training for a period of 12 months and 18 months respectively before

posting to the position.

COMPENSATION PATTERN

Components of Compensation Package

Basic Pay

Variable Dearness Allowance

House Rent allowance at the applicable rates or reimbursement of house rent and maintenance

charges as per the norms fixed by the Company from time to time.

Monthly Production Incentive linked to the Production beyond a certain level of production.

Applicable only for Level III and Level II.

Uniform Washing Allowance at the rates prescribed from time to time.

Fringe Benefits

1. Reimbursement of Conveyance expenses for Two wheelers/Four wheelers as per the

eligibility criteria.

2. Children’s Education Assistance as per the eligibility criteria.

3. Professional Development expenses reimbursement as per eligibility criteria.

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4. Subsidized Canteen facility/reimbursement of canteen subsidy based on attendance as the

case may be.

5. Reimbursement of Entertainment expenses depending upon eligibility criteria.

6. Reimbursement of Telephone call charges in respect of residential telephone subject to

conditions.

7. Holiday/LTA depending upon the eligibility criteria – Biennial

8. Reimbursement of Annual membership fee of Professional Bodies

Welfare Measures

Housing Loan Interest subsidy

Provision of Uniform and Shoes.

Medical reimbursement scheme

Reimbursement actual medical expenses based on production of bills subject

to a maximum of one month Basic Pay plus Dearness Allowance per year

with facility for accumulation on the unexpired balance without any upper

ceiling.

Loans for purchase of Computer systems at a nominal rate of 2% per annum

Interest free loans facility for professional education of the Management Staff subject to

certain conditions.

Mediclaim cover for self and dependents on contributory basis – for covering hospitalization

medical expenses.Personal Accident coverage Policy

Leave Benefits

(a) Casual Leave………...10 days/yr

(b) Sick Leave…………..10 days/yr(can be accumulated up to 90 days)

(c) Earned Leave…………30 days/yr

Mediclaim Insurance Coverage

This scheme is mainly intended for employees who go out of the purview of the coverage of ESI.

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All employees covered by the medical reimbursement scheme, shall be covered under a

group Mediclaim Open policy for meeting the medical expenses on account of

hospitalization.

The employees should give a complete list of the persons who are wholly dependent on the

employee. The employee should keep on updating the list at the beginning of every year.

The annual premium will be calculated by the insurance company based on the age of the

dependents, and the premium will be paid by the Company in the first instance.

50% of the premium will be borne by the Company.

Benefits under the Mediclaim policy will be available only for treatment connected with

hospitalization for a minimum period of 24 hours.

The claims under the Mediclaim Policy will be forwarded to the insurers through the

Company and the amount realized will be released to the concerned employee through the

Company.

The sum assured eligible under the Mediclaim Policy can be wholly availed of by a single

member of the family, in cases of emergency. In such cases, the remaining members of the

family shall not be entitled for any benefit during that particular year.

TRAINING POLICY

Standard Operating Procedure for Training Programs

1. Identification of Training Needs: -

Needs will be identified by the concerned Department Heads. While identifying the needs, the

suggestions put forth by the participants in the previous year’s training programs, will also be taken

into account. Dy. M (T) will convene meetings at the Divisions /R. O. in the month of January every

year to assist the Department Heads to assess the training needs.

Dy. M (T) will consolidate the Training needs and evolve a draft training plan in

consultation with ED (HR & G) and circulate the draft to the Division Heads, by the 3rd

week of February every year

2. Preparation of the Final Training Plan:-

Dy. M (T) will discuss with the Division Heads regarding the draft training plan. He will

incorporate the changes, if any, in the plan and a final training plan will be prepared and submit to

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ED (HR & G) for inclusion in the Training Budget. After obtaining the Training Budget approved,

Dy. M(T) will send copies of the Training plan to all concerned, latest by the third week of March

every year.

3. Conducting of the Training Program:-

Dy. M (T) shall ensure that all the Training Programs are conducted as per the schedule

drawn up. Main steps to be followed are:

(a) Identifying Faculty

Internal - As suggested by the Division Heads.

External - From the panel of faculties available in the

Training Department or specific faculty suggested

by the Division Heads.

(b) Structuring the Program

Fixing the date of training programme and venue in consultation with the

Department/Division Heads. Drawing up the list of participants in consultation with all

concerned and issuance of formal notice. Getting course material from the faculty concerned

and making sufficient no. of copies for circulation among participants.

(c) Conducting of the Training Program

Dy.M (T) will make arrangements for the smooth conduct of the programme on the dates/at

the venue.

4. Getting Feedback on the Effectiveness of the Program

Dy.M (T) will get the feedback on the effectiveness of the Training Program by a 3-Tier assessment

method as follows:-

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(a)Evaluation Test

To assess the level of comprehension of the participants

(b) Feedback from Individuals

At the end of the Training Program a questionnaire will be circulated to all participants

wherein the following parameters will be evaluated on a five point scale i.e. Excellent, Very

good, Good, Average, Poor.

(i) Usefulness of the program to the participants.

(ii) Depth of the program content.

(iii) Rating of the faculty in terms of his/her presentation skills,

Ideational fluency, knowledge of the subject, ability in bringing

about attitudinal changes in the participants.

(c) Feedback from the Department/Division Heads

After three months of conducting the Training program, Dy.M (T) will send an evaluation sheet

to the concerned Department/Division Heads to assess the effectiveness of the training program

with specific reference to the following areas.

(1) Application of the new skills acquired - By immediate superior

(2) Behavioral/attitudinal changes visible - By Middle Managers

as a result of the Training Program

(3) Overall evaluation of the participants. - By the Division Head

5. Corrective Action

Based on the evaluations made by the participants as well as the Division Heads Dy.M (T) will

initiate appropriate corrective action with focus on the following aspects.

(a) Reviewing the course content/duration.

(b) Changing the faculty if needed.

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(c) Retraining the participants to make up the shortfall in

performance/for bringing about the desired attitudinal changes.

(d) Restructuring the training program to increase the usefulness to

the participants.

6. Preventive Action:

In case of non-conformities, suitable preventive action is initiated to avoid recurrence of

such non-conformities in future. Such cases are reported in the Corrective and Preventive

Action Committee Meetings. The effectiveness of the corrective/preventive action is

regularly monitored.

7. Improvements:

Continuous improvement being the backbone of TQM HR strategy, the systems and

procedures are periodically improved and revamped if found necessary. Such improvements

are reported at the Corrective and Preventive Action Committee Meetings.

Retirement

Age of retirement

Every employee shall retire on the attainment of 58 years of age.

Date of retirement

An employee will retire from the service on the last day of the month in which he superannuates.

Notice of Superannuation

An employee attaining superannuation shall be given a prior written notice 1 month in advance,

indicating the date of his superannuation. During this period, the employee will be allowed to

exhaust the leave standing to his credit.

Terminal Benefits

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An employee on superannuation shall be entitled to the following terminal benefits:

a) Gratuity@15 days’ pay for every completed year of service.

b) Encashment of earned leave: the entire earned leave standing to the credit of the employee as on

the date of superannuation will be allowed to be encashed

c) Salaries/wages up to the date of retirement

Service certificate

An employee who superannuated shall be entitled for a service certificate on the date of

superannuation.

Settlement of PF, pension schemes etc

The papers regarding settlement of the PF, pension scheme etc will be processed well in advance

and forwarded to the authorities immediately after the superannuation of the employee concerned.

The Company will follow up the matter and will ensure that the superannuated employee gets the

benefits without much delay

Functions of Personal Administration Department

PERSONNEL ADMINISTRATION

Manpower Planning Wage & Salary Admn.

Recruitment Welfare Functions

Selection Social Security Functions

Placement Liaison with Govt Depts.

Induction General Administration:-

Training Repairs & Maintenance of Office Building

Performance Appraisal Vehicle Running & maintenance

Compensation Planning Dispatch of mail

Page 51: Report 1

Succession Planning Renewal of Licenses under various Statutes

Industrial Relations Telephones

Discipline and Disciplinary Finalization of Miscellaneous contracts

proceedings Management of security

The following are the important functions of the P&A Department

Recruitment:

Liaison with sources of labor supply

Interview applicants

Tests and Physical Examination

Maintenance of Personnel statistics

Granting of Increments to employees

Training

Training of new starters, apprentices, employees for transfer and promotion, instructors,

supervisors, etc

Encourage additional education, qualification, and other necessary skills

Work tours

Internal Management

Promotion of employees

Transfer of employees

Demotion

Termination of services

Wages and Salary Administration

Job analysis

Job evaluation

Wages surveys

Employee training

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Wage incentives

Profit sharing

Workers participation in management

Industrial Relations

Workers morale and discipline

Labor legislation interpretation

Attending labor grievances

Labor management co-operation

Arbitration

Social security and Labor Welfare

Provision of labor amenities

Implementation of social security legislation

Other social security measures, like provident fund, old-age pension, employees’ insurance,

etc.

RECRUITMENT POLICY

The qualification and other requirements for recruitment in NGIL are explained in table shown in

the annexure. (Annexure- 2)

Sources of recruitment:

Internal

Promotions from within

Employee Referrals

Routine Applications

External

Employment Exchanges

Professional Institutions(Engg colleges, Business Schools)

Page 53: Report 1

References from well-wishers

(other industries, local bodies, State admn.)

ITIs, Supervisory Development Centres, Related Instruction centres

Campus selection

Mode of Recruitment for Freshers:

Written test

Psychological test

Physical Endurance Test

Group Discussions

Preliminary Interview

Final Interview

Pre-Employment Medical Checkup done by Company’s approved medical institution.

Selection is based on the fitness certificate issued by the approved medical institution.

Placement/Induction:

The appointee will report to the Head (P&A) who will brief the appointee regarding the general

information about the Company and introduce the appointee to the concerned Division Head.

After meeting the Division Head, the appointee will report to the Admn.-in-Charge of the

concerned division where he’ll be required to fill up various forms regarding PF, ESI, gratuity

etc. The appointee will also fill up a joining report form. The Admn.-in-Charge will brief the

appointee on the various procedures to be followed and will direct him to the concerned

Department Head.

Subsequently, the appointee will undergo an induction training programme.Performance

Appraisal:The appointee will be assessed by his immediate superior and the Department Head

while he’s undergoing the Training/probation.

At the end of the training/probationary period, a performance appraisal format will be

forwarded by the P&A Department to the concerned Department. The concerned Department

will do the Performance Appraisal and send back the Appraisal Form to the P&A Dept. with

specific recommendations.

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On receipt of the recommendations, the P&A Dept. will process the necessary papers for the

regularization/confirmation/ extension of the training/probation as the case may be. However,

the appointee will be given a feedback on the Performance Appraisal by the concerned Division

Head in the presence of the Admn.-in-Charge, especially upon an adverse remark.

Confirmation:

On completion of the stipulated probation period, the appointee will be confirmed in the service

of the Company in writing.

The confirmation order will be issued by the Head(P&A) and will be served on the appointee

through the Department/Division Head.

In the absence of a Confirmation order in writing, the appointee will continue as a probationer,

till such time the confirmation order is issued.

Recruitment Procedure

Identification of Vacancy by

Dept. Head / Div. Head

Advt. In news paper/ Emp.exchange/

Application blank/ Internal notification

Final Interview

Medical Check Up

Selection / placement

Induction Training

Written Test/Initial Interview

On the Job Training Regularization of Appointment

For Trainees

Page 55: Report 1

PROMOTION POLICY:

Up gradation within the Level:

In the normal course up gradation from lower grade to the next higher grade within one level

will be given within a timeframe.

Promotion from Lower Level to Higher Level:

Promotion from lower level to next higher level will be based on the following criteria.

(1) Availability of a position in the higher level.

(2) Suitability of the candidate in terms of experience in the lower level, prescribed

qualification and aptitude.

In case more number of candidates are available for promotion to a post in the next higher level

the promotion will be based on written test and/or interview.

Promotees shall be entitled to an applicable fitment benefit and a promotion increment in the

higher grade.

Internal promotions:

To the extent possible recruitment by internal promotions will be resorted to, subject to

availability of suitable candidates with required experience in the lower grade. Promotion will

be based on written test and/or interview. However, recruitment from external sources will be

resorted to if there are no suitable candidates available from within.

Assistant Officer/Foreman grade is the promotion grade for the workmen who are promoted to

Management Cadre.

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Direct Recruitment to Management Cadre will be as Officers/Engineers. In case of Fresh Post

graduates in Professional Disciplines and Fresh Engineering graduates, the recruitees will be

imparted on-the-job training for a period of 12 months and 18 months respectively before

posting to the position.

COMPENSATION PATTERN

Components of Compensation Package

Basic Pay

Variable Dearness Allowance

House Rent allowance at the applicable rates or reimbursement of house rent and maintenance

charges as per the norms fixed by the Company from time to time.

Monthly Production Incentive linked to the Production beyond a certain level of production.

Applicable only for Level III and Level II.

Uniform Washing Allowance at the rates prescribed from time to time.

Fringe Benefits

9. Reimbursement of Conveyance expenses for Two wheelers/Four wheelers as per the

eligibility criteria.

10. Children’s Education Assistance as per the eligibility criteria.

11. Professional Development expenses reimbursement as per eligibility criteria.

12. Subsidized Canteen facility/reimbursement of canteen subsidy based on attendance as the

case may be.

13. Reimbursement of Entertainment expenses depending upon eligibility criteria.

14. Reimbursement of Telephone call charges in respect of residential telephone subject to

conditions.

15. Holiday/LTA depending upon the eligibility criteria – Biennial

16. Reimbursement of Annual membership fee of Professional Bodies

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Welfare Measures

Housing Loan Interest subsidy

Provision of Uniform and Shoes.

Medical reimbursement scheme

Reimbursement actual medical expenses based on production of bills subject to a

maximum of one month Basic Pay plus Dearness Allowance per year with facility

for accumulation on the unexpired balance without any upper ceiling.

Loans for purchase of Computer systems at a nominal rate of 2% per annum

Interest free loans facility for professional education of the Management Staff subject to

certain conditions.

Mediclaim cover for self and dependents on contributory basis – for covering hospitalization

medical expenses.Personal Accident coverage Policy

Leave Benefits

(d) Casual Leave………...10 days/yr

(e) Sick Leave…………..10 days/yr(can be accumulated up to 90 days)

(f) Earned Leave…………30 days/yr

Mediclaim Insurance Coverage

This scheme is mainly intended for employees who go out of the purview of the coverage of ESI.

All employees covered by the medical reimbursement scheme, shall be covered under a

group Mediclaim Open policy for meeting the medical expenses on account of

hospitalization.

The employees should give a complete list of the persons who are wholly dependent on the

employee. The employee should keep on updating the list at the beginning of every year.

The annual premium will be calculated by the insurance company based on the age of the

dependents, and the premium will be paid by the Company in the first instance.

50% of the premium will be borne by the Company.

Page 58: Report 1

Benefits under the Mediclaim policy will be available only for treatment connected with

hospitalization for a minimum period of 24 hours.

The claims under the Mediclaim Policy will be forwarded to the insurers through the

Company and the amount realized will be released to the concerned employee through the

Company.

The sum assured eligible under the Mediclaim Policy can be wholly availed of by a single

member of the family, in cases of emergency. In such cases, the remaining members of the

family shall not be entitled for any benefit during that particular year.

TRAINING POLICY

Standard Operating Procedure for Training Programs

1. Identification of Training Needs: -

Needs will be identified by the concerned Department Heads. While identifying the needs, the

suggestions put forth by the participants in the previous year’s training programs, will also be taken

into account. Dy. M (T) will convene meetings at the Divisions /R. O. in the month of January every

year to assist the Department Heads to assess the training needs.

Dy. M (T) will consolidate the Training needs and evolve a draft training plan in

consultation with ED (HR & G) and circulate the draft to the Division Heads, by the 3rd

week of February every year

2. Preparation of the Final Training Plan:-

Dy. M (T) will discuss with the Division Heads regarding the draft training plan. He will

incorporate the changes, if any, in the plan and a final training plan will be prepared and submit to

ED (HR & G) for inclusion in the Training Budget. After obtaining the Training Budget approved,

Dy. M(T) will send copies of the Training plan to all concerned, latest by the third week of March

every year.

3. Conducting of the Training Program:-

Dy. M (T) shall ensure that all the Training Programs are conducted as per the schedule

drawn up. Main steps to be followed are:

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(a) Identifying Faculty

Internal - As suggested by the Division Heads.

External - From the panel of faculties available in the

Training Department or specific faculty suggested

by the Division Heads.

(b) Structuring the Program

Fixing the date of training programme and venue in consultation with the

Department/Division Heads. Drawing up the list of participants in consultation with all

concerned and issuance of formal notice. Getting course material from the faculty concerned

and making sufficient no. of copies for circulation among participants.

(c) Conducting of the Training Program

Dy.M (T) will make arrangements for the smooth conduct of the programme on the dates/at

the venue.

4. Getting Feedback on the Effectiveness of the Program

Dy.M (T) will get the feedback on the effectiveness of the Training Program by a 3-Tier assessment

method as follows:-

(a)Evaluation Test

To assess the level of comprehension of the participants

(b) Feedback from Individuals

At the end of the Training Program a questionnaire will be circulated to all participants

wherein the following parameters will be evaluated on a five point scale i.e. Excellent, Very

good, Good, Average, Poor.

(i) Usefulness of the program to the participants.

(ii) Depth of the program content.

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(iii) Rating of the faculty in terms of his/her presentation skills,

Ideational fluency, knowledge of the subject, ability in bringing

about attitudinal changes in the participants.

(c) Feedback from the Department/Division Heads

After three months of conducting the Training program, Dy.M (T) will send an evaluation sheet

to the concerned Department/Division Heads to assess the effectiveness of the training program

with specific reference to the following areas.

(1) Application of the new skills acquired - By immediate superior

(2) Behavioral/attitudinal changes visible - By Middle Managers

as a result of the Training Program

(3) Overall evaluation of the participants. - By the Division Head

5. Corrective Action

Based on the evaluations made by the participants as well as the Division Heads Dy.M (T) will

initiate appropriate corrective action with focus on the following aspects.

(a) Reviewing the course content/duration.

(b) Changing the faculty if needed.

(c) Retraining the participants to make up the shortfall in

performance/for bringing about the desired attitudinal changes.

(d) Restructuring the training program to increase the usefulness to

the participants.

6. Preventive Action:

In case of non-conformities, suitable preventive action is initiated to avoid recurrence of

such non-conformities in future. Such cases are reported in the Corrective and Preventive

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Action Committee Meetings. The effectiveness of the corrective/preventive action is

regularly monitored.

7. Improvements:

Continuous improvement being the backbone of TQM HR strategy, the systems and

procedures are periodically improved and revamped if found necessary. Such improvements

are reported at the Corrective and Preventive Action Committee Meetings.

Retirement

Age of retirement

Every employee shall retire on the attainment of 58 years of age.

Date of retirement

An employee will retire from the service on the last day of the month in which he superannuates.

Notice of Superannuation

An employee attaining superannuation shall be given a prior written notice 1 month in advance,

indicating the date of his superannuation. During this period, the employee will be allowed to

exhaust the leave standing to his credit.

Terminal Benefits

An employee on superannuation shall be entitled to the following terminal benefits:

a) Gratuity@15 days’ pay for every completed year of service.

b) Encashment of earned leave: the entire earned leave standing to the credit of the employee as on

the date of superannuation will be allowed to be encashed

c) Salaries/wages up to the date of retirement

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Service certificate

An employee who superannuated shall be entitled for a service certificate on the date of

superannuation.

Settlement of PF, pension schemes etc

The papers regarding settlement of the PF, pension scheme etc will be processed well in advance

and forwarded to the authorities immediately after the superannuation of the employee concerned.

The Company will follow up the matter and will ensure that the superannuated employee gets the

benefits without much delay

Manpower Strength

Ossein

Division

Gelatin

Division

Registered

Office

Bamni

Plant

total

Mgt. Staff 32 46 35 18 131

Workmen 116 106 21 112 355

Total 148 152 56 130 486

Shift working

Shift Timings:

a) Ossein Division:

General shift………………..…….8:30 am to 4:30 pm

Relay shift: A shift………………7:00 am to 3:00 pm

B shift………………3:00 pm to 11:00 pm

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C shift………………11:00 pm to 7:00 am

b) Gelatin Division:

General shift…………………..….9:00 am to 5:00 pm

Relay shift: A shift………………7:30 am to 3:30 pm

B shift………………3:30 pm to 11:30 pm

C shift………………11:30 pm to 7:30 am

c) Registered Office …………………….9:00am to 5:00 pm

Saturdays……9:00 am to 1:00pm

HUMAN RESOURCES INFORMATION SYSTEM

A human resources information system (HRIS) is a system of software and supporting computer

hardware specifically designed to store and process all HR information. Also known as HRMS,

human resources management systems or less commonly, HRIMS, these systems are the mainstay

of modern HR departments. Traditionally, human resources departments relied on multiple

programs in each department. An HRIS integrates all of these programs through a common

database and single-user interface. An HRIS combines separate HR systems into a centralized

database that performs the majority of HR transactions. HRIS are particularly useful for payroll and

benefits administration.

HRIS in NGIL uses Oracle software. This HRIS database consists of

Employee profiles

Training details

Reminders

Reports

Master forms

Miscellaneous forms

Payroll- MIS

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Administration details etc

HRIS enlists employees, grade-wise, designation-wise; gives their profile; personal and

professional details, training reports and other related reports like birthday, blood group etc. It also

gives access to leave register, increments list, production incentive, cost of living index and help

work out payrolls, bonus and salary payments.

7.2.2 COMMERCIAL DEPARTMENT

Commercial department is nothing but the purchase department. The primary objectives of

commercial department are threefold:

1. To procure the necessary materials, supplies etc., of proper quality

2. To procure them in time for plant requirements and have them delivered at the proper place

3. To procure them at the lowest possible ultimate cost.

The task of the purchasing department is to have on hand necessary goods to ensure uninterrupted

production of a product of satisfactory quality is the lowest possible expense. More briefly

summarized, it is to obtain what is wanted, when it is wanted, where it is wanted of the right quality

and the right cost.

Purchase Policy

NGIL’s policy is to ensure timely procurement of quality products conforming to specify

requirements at a competitive price based on procurement requests of various Departments.

In NGIL Commercial and Marketing activities is carried out under the Commercial Department

itself.

Functions of the Commercial Department

Locating and selecting sources of supply for materials required

Interviewing suppliers, representatives, arranging conferences and plan visits

Requesting for quotations and conducting negotiations

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Procuring materials when required

Verifying quality and quantity received

Approving invoices and handling rejections and adjustments

Maintaining records necessary for proper operation of its function

Keeping informed on business trends, assembling and analyzing pertinent data on markets,

supply, demand, price trends etc.

The structure of the Commercial department of NGIL is described below.

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Purchasing Procedure:

As per the quality manual, the purchasing procedure of NGIL’s Commercial/ purchase department

is as follows:

1. Raw Materials

Purchase crushed bone as per annual plan from the approved vendors

Purchase hydrated lime as per the monthly plan from the approved vendors

Purchase HCL as per the annual plan from the approved vendors

2. Fuel

Purchase of diesel and furnace oil from the suppliers based on annual budget

3 .Process chemical and packing materials

Raise MPR for the process chemicals needed by the indenting department

Authorization of MPR by Head of Division

Purchase from the approved vendors

4. Engineering stores, spares, equipments and lab chemicals

Raise MPR by indenting department

Authorization of MPR by Head of Division

Processing of MPR and purchase

5. Maintenance services

Raise request note for annual maintenance contract by Head of Division

Award contract to the approved contractors

Purchase/service orders are reviewed for adequacy of relevant data viz specification, delivery,

prices, mode of inspection and approval of material, transportation etc and the order is released

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after approval by Head of Commercial. Amendments to purchase orders are made by Head of

Commercial after obtaining concurrence from Head of Division/Finance.

The entire process can be narrated with the following illustration.

7.2.4 Salient features of Commercial functions of NGIL

• The controls from Raw material stage

• Hygiene and sanitations

Receiving of MPR

Evaluation of MPR

Inviting tenders

Evaluation of Tenders

Selection of Supplier

Purchase Proposal

Approval from Finance Department

Purchase Order

Inspection and Storing

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• Documentation

• Concept of trace ability

• Concept of risk free raw material

• Assurance of safe raw material for manufacture of safe gelatin

• Origin of cattle

• Certificate of Veterinary Doctors

• Certificates accompany the loads

• Maintenance of documents for trace ability

7.2.3 MARKETING & BUSINESS DEVELOPMENT DEPARTMENT

Marketing is fundamental organizational function, basic for its survival, sustenance and growth. It

has philosophical and strategic overtones for the individual organization, to the extent that this

function aims at achieving some of the basic organizational objectives. Peter Drucker says, “The

purpose of business is to create a customer”. This statement highlights the basic reason for the

existence of any business organization. Marketing can be identified into type’s retail and corporate

business. NGIL follows corporate business marketing. NGIL’s products are marketed directly to the

customer or through dealers to the customers.

Marketing Functions

Identifying new markets

Sales

Sales review

Ensuring customer satisfaction

Business Development Functions

• Conceptualizing new business Opportunities

• Project Identification and Feasibility Study

• Sourcing Know-how, preparation of action plan, selection of site, compliance to regulations

• Plan, co-ordinate, implement and monitor the individual projects

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Duties and responsibilities

Marketing Manager: Responsible for all the Gelatin sales and marketing in the export and

domestic market. Coordinates the factory

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Dy. Manager (Marketing): Responsible for Ossein exports and buyback scheme from the parent

company. Coordinates with GD and handles DEPB and drawback procedures.

Engineer (marketing): Responsible for all the DCP sales and marketing in the export and domestic

market.

Assistant Officer: Documentation of all gelatin sales. Assistant to DGM (C)

Crushed bone + HCL Ossein Gelatin

Byproduct

DCP

Gelatin

Gelatin is produced from collagen which is a main protein found in animal skin and bones. Gelatin

contains 84-90% protein, 1-2% mineral salts and the rest is water.

Gelatin is specified and classified to three types according to their application. They are:

1) Edible Gelatin

2) Pharmaceutical Gelatin

3) Photographic Gelatin

Edible Gelatin: The most common form of Gelatin is edible Gelatin. Edible Gelatin is used in

confectionery, Gelatin Desserts, diary products, Beverages& Juices

Pharmaceutical Gelatin: Gelatin is used as an ingredient to manufacture two-piece hard capsules,

soft gelatin capsule, tablets & tablet coating.

Photographic gelatin: this grade gelatin is used in applications of paper , film and inkjet paper

Network of gelatin sale of NGIL

NGIL

KCPL

Direct

Marketing

Mitsubishi

Corporation

NGI NGNAIndia,

Colombo,

Jordan,

Egypt,

South East

Asian

US,

Europe

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Major Competitors of NGIL Gelatin

Global Indian

D&F, Germany Sterling

Gelice, Japan Pioneer

P.B., UK IGCL

Rousselot Narmada Gelatin

Nippi, Japan Raymon

K&K, US CJ

The plant capacity of G.D is 4000 MT and 3500 MT of Gelatin is produced by NGIL in a year. Of

which 70% of Gelatin is exported and the remaining 30% is sold in the domestic market. The major

customer of Gelatin in the export market is Nitta Gelatin Inc. Major Countries where NGIL exports

gelatin are Japan, Jordan, Iran, Turkey, Dubai, Oman, Srilanka, Singapore, Netherlands, US,

Canada, Australia, Egypt, Thailand, and Indonesia. Domestic market share covers the main cities

like Bangalore, Mumbai, Pune and Chennai.

Alternatives of Gelatin

Carragen

Pectin

Alginates

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Ossein

NGIL manufactures ossein under the technical guidance of NITTA & exports Ossein to Nitta, Japan

on a buy-back agreement. Also Ossein is used to manufacture Gelatin. NGIL is having is having an

Ossein production capacity of 7000MT and set up facility to produce 5000MT Limed ossein

Ossein comes in two types:

1. Dry Ossein

2. Wet Ossein(limed ossein)

Dry Ossein is exported to NGI and limed Ossein is sent to the gelatin plant for manufacturing

gelatin. Ossein is an intermediary product and not sold in the market directly. Under the business

collaboration with NITTA, NGIL supplies 70% of Ossein to NITTA on a 100% buy-back

agreement; Remaining 30% is transported to Gelatin Division as a raw material for the production

of Gelatin. There is a special transport arrangement to carry Limed Ossein from Koratty (Ossein

Division) to Kakkanad (Gelatin Division).

Di-Calcium Phosphate (DCP)

Di Calcium Phosphate is a by-product which is extracted while manufacturing ossein from crushed

bone. It is white, odourless, taste less powder. It is an important constituent of mineral mixtures and

is used in feed industry to mainly supplement calcium and phosphorus. Feed grade DCP

manufactured from bones does not contain high level of fluorine, lead and arsenic impurities.

NGIL is the market leader in the production of premium DCP (animal feed grade). With over

twenty years of expertise, NGIL produces and supplies premium quality DCP to all major poultry

and animal feed manufacturers in India. The plant capacity of Di Calcium Phosphate is 15,000

MT .50% DCP is sold in domestic market through agents and also by direct selling. The States

where DCP sold are AP, Karnataka, Tamilnadu, Maharashtra, Orissa, and Chattisgarh. In AP and

Karnataka there are appointed agents to sell the DCP. Nearly 50% of the production is exported to

countries like Thailand, Malaysia, Indonesia, Philippines, Singapore, and Sri Lanka and so on, for

the same purpose.

NGIL DCP Sales:

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1. Through the consignment agencies

2. Export

3. General

Alternatives of DCP;

1. Animal By-products

a. Meat meal

b. Fish meal

c. Liver meal

d. Blood meal

e. Hydrolyzed feather meal

2. Oyster meal

Sales Procedure

Market enquiry Purchase Order Sales Invoice Transportation

Delivery

Pricing Strategy

NGIL has fixed a premium price for Gelatin. The total cost would include:

Cost of Production + Packaging + Sales & Distribution + Profit + Taxes = Market Price

Promotional Efforts

Advertising and sales promotion activities: The nature of the product of NGIL is such that they

don’t require any aggressive sales promotional activities. Products are targeted to a particular group

of customers and it is easy to identify and spot the customers and they are constantly being in touch

with their customers. However on requirement basis NGIL conducts sales promotion activities by

advertising the products through posters, event sponsorships, and sales exhibitions and in Pharmacy

Journals.

Apart from these frequent market visits are conducted to study new market entries. Test marketing

and marketing share analysis are carried out to check the status of their products in the market.

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Complaint Handling

There is technical team for handling customer complaints in NGIL. On receipt of any complaint

from the customer, marketing department shall immediately register the complaint in the complaint

register. The complaint shall be forwarded to Quality Assurance Department. QA dept shall

investigate the root cause of the complaint. The marketing dept shall then send the report received

from QA on the investigation and action taken to the customer. Customer complaints are reviewed

periodically.

Marketing Strategy

Market- oriented strategic planning is the managerial process of developing and maintaining a

viable fit between the organization’s objectives, skills and resources and its changing market

opportunities. The aim of strategic planning is to shape the company’s business and products so that

they yield target profits and growth.

The main marketing strategies adopted by NGIL are:

Customization: customization is the art of tailoring the product according to the needs of the

customers. It is the ability to prepare individually designed products and communication to

meet each customer’s requirements. Today customers are taking more individual initiative

in determining what and how to buy. They log on to the internet; lookup information and

evaluations of product or service offers; dialogue with suppliers, users and product critics;

and make up their own minds about the best offer. NGIL believes in the strategy of

customization. To achieve this objective the marketing department of NGIL undertake

following activities.

Preparation of marketing plan (periodically both in short term & long term)

Modification of product to suit the customers needs.

Delivering the products in time

Contact with Q.A to meet the standard of the product.

Analyzing the competition

Attending customers’ complaints

Keeping alert with global scenario

Analysis of sales performance

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Collection of marketing information (from customers, competitors and regulatory

authorities. The methods of collecting marketing information are through market surveys,

telephonic conversation, direct meetings, and from the media.)

7.2.4 FINANCE DEPARTMENT

Finance is the lifeblood of any business. It is an important section in the finance department.

It plays an important role in the overall accounting procedure of the organization. All the

major works are done in the finance and accounts section.

Functions of Finance and Accounts Department:

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To check whether accounting system is properly maintained or not

To see that posting of ledgers, passing of vouchers etc are properly done.

Total analysis of income and expenditure accounts.

Preparation of yearly budgets such as capital budget, revenue budget etc.

Capitalization of the assets

Confirmation of balance of deposits, advances, if any

Preparation of Trial Balance, Profit & Loss account and Balance Sheet

Reconciliation of inter unit accounts

Attending all audits like statutory audit and preparation of all schedules related to Profit &

Loss account and Balance sheet.

Disbursement of wages / salaries.

Scrutiny and approval of funds needed by various departments of the organization

Loan recoveries

Tax remittance

P.F contribution remittance

Leave encashment, retirement benefits, welfare, recoveries and remittances, medical facility

for accident compensation etc are provided.

Duties and responsibilities

General Manager (F&A)

1. Overall financial management of Kerala Chemicals and Proteins Limited and Bamni

Proteins Limited

2. Responsible for the following functional areas:

a. Planning, budgetary control, management information system, board notes and

concurrence of all work orders and executive sanction requests.

b. General accounts, preparation of final accounts and auditing, implementation of

accounting procedures.

c. Complying with the formalities relating to sales tax, income tax, works contract tax,

etc

d. Identification of cost centers, cost control, furnishing cost data to the Managing

Director and division heads

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Manager (F)

Accountable for:

a. Efficient functioning of the Finance and Accounts functions

b. Timely submission of Reports and Accounts

c. Generation of control information leading to expenditure reduction and revenue

augmentation

d. Optimum utilization of Assets and effective control of liabilities

e. Reduction in incidences of taxes and duties due to permitted planning

f. Working capital control and management

Manager (A)

1. Monitoring and control of all cash receipts and payments

2. Arrangements for payments to creditors

3. Follow-up and monitoring of sundry debtors

4. Monitoring and management of overdraft facilities from banks

5. Attending to other requirements of creditors such as issue of C- forms, priority payments

etc

6. Monitoring and management of consignments, sales and stock of goods send on

consignment

7. Collection and monitoring of dues from consignment agents.

Manger (EDP)

1. Maintenance and control of entire computer installations of the company including head

office and production division security at Gelatin Division, Kakkanad

2. Monitoring the development of new application softwares based on the requirements of the

user department

3. Acting as an interface between departments and outside software developers for developing

new application softwares.

4. Managing the modifications/amendments/corrections sort for by the various user

departments.

5. Keeping maintenance of proper data/application software backups.

6. Licensing of softwares

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7. Management of data transfer between divisions and head office

8. Technical advice on all purchases required for Electronic Data Processing applications.

Dy. Manager (F) I

1. Preparation of company budgets

2. Preparation of periodical receipts on product costing

3. Preparation of MIS reports for management review and decision making

4. Preparation of depreciation schedule.

5. Ensure maintenance of Stores Ledger and Assets Register

6. Compliance of sales tax particulars for filing returns.

Dy. Manager (F) II

1. Maintaining General Ledger and drawing up trial balance every month

2. Maintaining Stores Ledger

3. Payment of salary/wages

4. Checking of factory imprest (Ossein Division)

5. Reporting of long overdue advances

Budgeting

The company follows historical budgeting and prepares yearly budgets for the company as a whole.

And also separate for registered office, Ossein and gelatin divisions.

Investment Proposals

Company is right now implementing a capital project on capacity expansion of gelatin plant to

capitalize on the economies of large scale production. In addition to the above the company is also

contemplating massive investments on related areas of business to take care of any eventualities in

the export market.

Financial Highlights for the last 8 years (Rs in lakhs)

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09Total

Income8002.33 7969.16 9224.71 9961.69 9966.19 13766.42 14585.97 18645.02

Sales 7161.41 7629.65 8601.25 8841.23 9763.86 13119.55 14638.13 18247.75Exports 4698.63 4684.77 5260.42 5424.82 6236.79 7968.00 7950.32 10141.82Pre-tax 367.83 (467.02) (645.82) (217.49) (365.65) 721.83 728.91 2466.38

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Profit/(loss)Profit/(loss)

after tax441.45 (311.05) (645.82) (239.72) (379.65) 592.05 666.07 1501.94

Earnings per share

(Rs)

5.26 (3.70) (7.69) (2.85) (4.52) 7.05 7.93 17.88

Dividend per

share(Rs)

- - - - - 1.00 1.50 3.00

Reserves & Retained earnings

7373.33 7077.28 6431.46 6191.75 5812.10 6305.88 6777.98 7984.09

Share capital

840.00 840.00 840.00 840.00 840.00 840.00 840.00 840.00

Shareholders’ funds

8213.33 7917.28 7271.46 7022.83 6630.34 7110.95 7590.66 8824.09

Return on Equity (%)

5.37 (3.93) (8.88) (3.41) (5.73) 8.33 8.77 17.02

Book Value/share

(Rs)

97.78 94.25 86.57 83.61 78.93 84.65 90.36 105.05

Gross Block

10746.77

10882.23 11028.25 11578.84

11718.26

11632.38 12402.03 13609.38

Net Block 7531.66 6955.03 6411.08 6325.73 5777.68 5236.47 5384.24 5756.45

Significant Accounting Policies:

Basis of Accounting: The financial statement are prepared under the historical cost convention on

accrual basis expect as otherwise stated and in accordance with the applicable Accounting

Standards

Uses of estimated: The presentation of financial statements in conformity with the generally

accepted accounting principles requires estimated and assumptions to be make that affect the

reported amount of asset and liabilities on the date of the financial statement and the reported

amount of revenues and expenses during the reporting period. Differences between the actual result

and estimated are recognized in the period in which the results are known/materialized

Fixed assets: Fixed assets are stated at cost less depreciation and impairment in value if any is

adjusted

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Depreciation: Depreciation on plant and Machinery (other than service equipment) is provided on

straight line method. The rates adopted are as prescribed in Schedule XIV of the companies act,

1956 read with circular no/1/1/86 dtd 21.5.86 of the Department of company affairs, Government of

India except, in respect of the items having value in excess of Rs.5000/-, which are depreciated at

higher rates of the basis of technical evaluation by the management.

Investment: Long term inventories are stated at cost. Decline in value if any which is not

considered temporary in nature is provided for.

Inventories: In inventories are valued at lower cost or net realizable value item wise. For this

purpose the cost of bought out inventories comprise of the purchase cost of the items net of

applicable tax/duty credits and cost of bringing such items in to the factory on a weighted average

basis. The cost of manufactured inventories comprises of the direct cost of production plus

appropriate overheads. The net realizable value of bought out inventories in taken at their current

replacement value

Research and development: Research and development cost is expensed in the year in which it is

incurred unless the future benefit thereon is certain

Income tax: The provision for current tax is made based on the tax payable under the income tax

act 1961 Deferred tax assets/ Liabilities representing timing differences between accounting income

and taxable income are recognized to the extent considered capable of being reversed in subsequent

years

Export incentives: Export incentives are recognized on exports based on the estimated realizable

value of such entitlements.

Foreign currency Transactions: Monetary items denominated in foreign currency are reported at

the exchange rate prevailing as at the date of the Balance sheet and the resultant exchange gain/loss

if any has been adjusted to profit and loss account to the extent they related to items other than

liabilities incurred for acquiring fixed assets and those relating to liabilities for fixed assets which

have been adjusted to the carrying cost of such assets.

Borrowing Costs: Borrowing costs that are directly attributable to the acquisition construction or

production of an asset that takes a substantial period of time to get ready for its intended use are

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capitalized. Other borrowing costs are recognized as expenditure for the period in which they are

incurred.

7.2.5 SECRETARIAL DEPARTMENT

NGIL’s secretarial department consists of a Company Secretary and Senior Officer

Duties of Company Secretary:

The duties of a secretary may be classified into two divisions. Statutory duties and General duties.

Statutory or legal duties:

Maintenance of statutory books of the company, such as Register of members, Share Transfer

Book, The Minute Book, Register of Charges, Register of investments, Register of Directors,

Managing Director, Manager and Secretary

Preparing and feign the resolutions, reports and returns, copy of lease and agreement, legal

forms and other documents on behalf of the company

Supervising the issue of allotment of shares, share transfers and forfeiture of share, stock,

bonds and debentures of the company and the issue of share certificates and other legal

documents

Keeping the common seal of the company in safe custody and using it only when authorized

by the Articles and the Board of Directors

Ensuring that the activities of the company are not ultra vires the Memorandum of

Association or the Company Law.

Sending out copies of Balance Sheet, Profit and Loss Account and Auditors report.

General Duties:

He has responsibility of properly organizing the office

In consultation with the Chairman of the Board, he must arrange for the conduct of Board

Meetings by preparing the agenda, issuing notices and taking notes of the proceedings at the

meetings and recording minutes of same.

The secretary acts as a connecting link between the company and the shareholders

It is his duty to project the company’s image in the minds of the public at large.

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7.2.6 PRODUCTION DEPARTMENT

Manufacturing in its broadest sense is decidedly an art. There are three important phases of modern

manufacturing.

Planning of Production

Supplying of men, machines and materials

Controlling of production quality and process.

The production department sets targets during the periodical common division meeting. From this

plan, daily production target is determined. The daily production detail is given to commercial

department for procurement of raw materials. For the smooth going of production, the production

department is always in contact with commercial department, and stores department. The main

objectives of production are:

To ensure that all the products will have consistent quality

To achieve maximum customer satisfaction

To foster team work for optimum productivity of men and machinery

To meet the environment regulations with emphasis on safety of all the employees and

maintain the best house - keeping standards.

Installed capacity

Ossein division:

Ossein : 7000 MT per annum

Limed Ossein : 5000 MT per annum

Di calcium Phosphate: 15000 MT per annum

Gelatin division:

Gelatin : 4000 MT per annum

Bamni Protein ltd:

Ossein : 2400 per annum

Di calcium Phosphate: 5000 per annum

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7.2.6.1 Central Engineering Services Department (Maintenance)

According to Alfred and Beaty, ‘Maintenance in an industrial plant is the upkeep, repair, renewal

and replacement of worn, damaged, or obsolete parts of buildings, machinery and equipment’.

Maintenance aims primarily to keep in efficient operating condition the productive plant and

equipments, their auxiliaries, general engineering services, material handling units etc, as well as to

keep in good state of repair the buildings and structures. Maintenance also aims at keeping to the

minimum possible level down-time of such plant and equipment so as to ensure their higher

availability for production.

There can be two types of maintenance: Preventive and Corrective.

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Preventive Maintenance implies frequent inspection to detect minor faults and the early correction

of them, supplemented by periodic overhauling in accordance with a plan so that the possibility of a

major breakdown is almost entirely eliminated. On the other hand, corrective Maintenance means

that action is taken only when the need for it becomes obvious, and therefore gives no assurance

that a major breakdown will not occur.

CES in NGIL is responsible for equipment and plant maintenance, breakdowns and improvements.

For maintenance to be done by external contractors approval from MD & Finance department are to

be sought.

Duties and responsibilities

Deputy Manager

Bring machine breakdowns to zero

Track schedules for maintenance of machines

Prevention of equipment failures -Assistant Manager

Maintenance of machines-Senior Engineer

Maintenance planning activity

Planning materials for shut down and daily works-Engineer

Supervising the works done in the field

7.2.6.2 Quality Assurance and Quality Control

NGIL gives paramount importance to the quality of the product. To suite the customers needs

Q.A/Q.C department of NGIL regularly evaluate the production process starts from raw material

inspection and assessment of the finished product whether the product has met all the standard

quality requirements.

Quality Control stands for the systematic control of those variables, which affect the excellence of

the ultimate product. The general quality control process involves:

Establishment of quality standards

Ascertainment of quality deviation

Evaluate the methods of process of production and suggest improvements

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Accelerate the sale by presenting only the quality goods

The main functions of this department are

Control of raw materials

Standards and specifications

Control over production operations

Testing the quality of the equipment and other devices

Gaining control of quality through location of inspection points

Amount of inspection desired

Development of quality consciousness

Quality control of products through standardization of products and prior shipments

Application of statistical methods of quality control through the devices such as sampling,

frequency distribution, quality control charts, standard deviation, range, probability theories

etc.

Maintenance of adequate inspection and control record.

Quality Assurance certifications

With the objective of providing credibility and quality assurance to their customers the company

has been certified

ISO 9001:2000 - Ossein Division, Gelatin Division and

Bamni Proteins Limited

HACCP - Gelatin Division, Ossein Division

Drug Manufacturing Licence - Gelatin Division

WHO-GMP - Gelatin Division

EDQM - Ossein Division, Gelatin Division& Bamni Proteins

USFDA - Gelatin Division

IFANCA & MUI Halal - Gelatin Division

KOSHER - Gelatin Division

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QUALITY POLICY

We, in NGIL are committed to enhance customer confidence through continual improvement of product quality, safety and service.

Sd/-

Managing Director

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It is this simple realization that urged them on across the last twenty years to focus solely on

quality. Perhaps it is this preoccupation with quality that won them rich dividends- awards for

quality and performance, discerning clients across the world and a steady growth rate, NGIL

combines the best technology, marketing expertise and most importantly, dedicated human

resource. All of which go a long way to ensure their clients absolute quality.

Sustained quality through advanced technology: Their association with NITTA gives

them access to the latest technologies in the industry. A whole time Joint Managing Director

from NITTA heads technical operation. Gelatin quality control is directly under a Quality

Control Manager for NITTA. A full-fledged R&D department focuses on innovation,

improvisation and process development.

Quality Customer Service: Comprehensive customer orientation is one of NGIL’s

entrepreneurial guidelines. We believe that technically demanding products are only as good

as they’re accompanying services. Excellent customer support service and prompt delivery

has helped them establish a long-term relationship with customers. Their support services

include after-sales guidance, technical advice and usage related solutions.

7.2.6.3 Stores Department

A store keeping is defined as ‘that aspect of material control concerned with the physical storage of

goods’. It is the connecting link between the planning and production department and the shops.

The main facets of the stores keeping services are receiving, recording, storing and preserving,

issuing, replenishing and controlling the materials.

Stores department of NGIL is segregated into two namely, general stores and the engineering

stores. General stores concentrates the storing of raw materials needed for production and

engineering stores is concerned with the storing of tools and material equipments.

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Objectives of storekeeping:

There are three principal objectives of stores keeping:

To safeguard all goods in storage against losses

To have available all such goods ready for prompt delivery when properly authorized, and

To provide maximum stores keeping service to the manufacturing and sales department at a

minimum cost.

Function of storekeeping department:

Receipt of materials into store

Record keeping of materials in store

Storage of materials

Maintaining stores

Issuing stores

Co-ordination of storekeeping with materials control

DATA ANALYSIS AND INTERPRETATION

FINANCIAL HIGHLIGHTS (Rs in crores)

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2008-09 2007-08

Profit before depreciation and Income Tax 31.15 13.73

Less: Depreciation 6.49 6.44

Provision for income tax /FBT .15 .14

Provision for Tax under MAT(current year) 2.79 .83

Provision for Tax of earlier years .13 .34

Profit/Loss after tax 1502 6.66

Balance profit available for appropriation 15.02 6.66

Proposed Dividend 2.52 1.26

Dividend Tax .43 .21

Balance of loss brought forward from previous year 5.17 10.02

Balance Profit/Loss carried to Balance Sheet 2.90 5.17

The financial highlights of the company showed a Loss after tax of Rs 379.64 lakhs in the

financial year of 2005-06. The reasons for this are: the mad cow disease resulting in a general

reduction in the global demand for bone gelatin due to health scare, bird flu leading to the loss

of market for DCP, strengthening of rupee against dollar, high raw material cost, increase in

freight, increase in furnace oil price.

In 2006-07, sales have increased by 34.4% over the previous year to Rs 13123 lakhs as a result

of increased demand of Ossein from collaborators and also better sales realizations of DCP. The

production at the Ossein plant increased by 48% and at Bamni Proteins Limited (BPL), the

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subsidiary company, by 25.29%. This year the company changed its drying operations from

Furnace oil to Firewood except in critical areas resulting in substantial savings. The profit

before tax is Rs. 721.83 lakhs as against a loss of Rs.365.64 lakhs during the previous year. The

achievement of 2006-07 can be attributed to the strength of the company’s brand and strong,

enduring customer relationships, backed by the commitment of collaborators M/s. Nitta Gelatin

Inc., Japan.

In the year 2007-08, sales increased by 11.5 % over previous year to Rs.14638 lakhs as a result

of increased demand of Ossein from the collaborators, increase in production and sales of

gelatin and also better sales realization of DCP.As far as exports were concerned, it was a

turbulent year due to wide fluctuations in the US Dollar. The profit before tax is Rs.728.90

lakhs.

In the year 2008-09, sales increased by 25% over the previous year to Rs.182.48 crores mainly

due to increased production, increase in unit sales realization and better sales mix. The profit

before tax has increased by 238% over the previous year to Rs 24.66 crores. Production of

gelatin increased from 3090 MT to 3522 MT an increase of 14%.

CORPORATE

SOCIAL

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RESPONSIBIL

ITY

Chapter 8

CORPORATE SOCIAL RESPONSIBILITY

NGIL being a company with a very stringent code of business ethics, both in paper and in practice,

the Company has been actively participating in community development activities right from the

beginning. The major community development projects sponsored by the Company are:

1. Construction of a 10-bedded hospital building at Kathikudam, near the Ossein

Factory.

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2. Construction of a Reading Room under the name and style of Panampilly Smaraka

Vayanasala.

3. Co-partnership in the construction of “Krishi Bhavan” in Kadukutty Panchayat.

4. Sponsoring of prizes for the Best Students in SSLC exams, in General Stream and in

Scheduled Castes stream, from the Kadukutty and Koratty Panchayat area.

5. Co-partnership in the self-employment programme in the Kadukutty and Koratty

Panchayat areas, through the Kadukutty Rural Welfare Society.

6. Sponsoring of prizes in the sports activities in the area surrounding the Ossein

Division.

7. Provision of free drinking water to the families staying in the vicinity of the Ossein

Division and Gelatin Division.

8. Extending financial assistance for the free medical camps conducted in the areas

surrounding Ossein Division and Gelatin Division.

9. Extending financial assistance for the Panampilly Nagar Beautification Scheme,

initiated by the Panampilly Nagar Welfare Association.

10. Co-sponsoring of events conducted by the Government Departments, local bodies.

Reward for long service: The employees who complete 10 years’ of service in NGIL will be

rewarded with a wrist watch in recognition of the long service rendered by them.

Marriage gifts to employees: The Company has a system of giving a monetary gift at the time of

the marriage of an employee. The marriage gift is given in the form of a gift cheque on the date of

marriage.

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SWOT

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ANALYSIS

Chapter 9

SWOT Analysis

The overall evaluation of a company’s strengths, weakness, opportunities and threats is called

SWOT analysis. In general, a business unit has to monitor key macro environment forces

(demographic, economic, technological, political-legal, and social-cultural) and significant

microenvironment actors (customers, competitors, distributors, suppliers) that affect its ability to

earn profits. The business unit should set up a marketing intelligence system to track trends and

important developments. For each trend or development, management needs to identify the

associated opportunities and threats. A major purpose of environmental scanning is to discern new

marketing opportunities. Each business needs also to evaluate its internal strengths and weaknesses

periodically. It can do so by using a Memo or checklist for performing strengths, Weakness

Analysis. Management reviews marketing, financial, manufacturing and organizational

competencies and rates each factor as a major strength, minor strength, neutral factor, minor

weakness, or major weakness.

Strength

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Technology: The technology used in the production of Gelatin by NGIL is world class and

there is a competitive technological support and assistance by the NITTA Inc, Japan.

Collaboration with World Class performers: NGIL has an excellent tie-up with leading

companies of the world

KSIDC’s Assistance: KSIDC is a fully owned company of the State Government and for

the business development and industrial promotion NGIL gets professional, technical and

financial assistance from this governmental agency.

A vast global clientele

Dedicated, technically qualified people

Committed to improving the quality of the society

Weakness

Raw material transportation and availability: Raw material transportation is one of the

main problems that the company faces. Major part of the cattle bones is brought from North

India and they are being transported by trucks. Earlier raw materials were brought by

Railway goods service but often there were delays in getting the material on time since the

Railway Transportation Board gives last preference to such materials. Hence bringing entire

raw material by trucks involves a high raw material transportation cost.

Foreign exchange fluctuation: There is high fluctuation in the value of US dollar to India

rupee. Since 80% of the sales into the export market are billed in terms of US$ company is

incurring loss.

Low Market share: When we consider the entire gelatin industry the contribution of NGIL

is very minimum of 10-15%.

Opportunities

NGIL has successfully faced three very important international regulatory inspections and

therefore expects an increased confidence of their overseas customers resulting in an

increased demand for Gelatin. It is poised for another certification under the ISO 14001

which focuses mainly on Environment Management.

NGIL expects orders from new international customers in the pharmaceutical sector.

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NGIL’s products have the advantage of being well accepted in terms of quality and

regulatory compliance and therefore expect to increase its presence both in the export and

domestic markets.

The company is in the process of establishing business in new overseas markets on the

strength of the product quality and regulatory compliance

The company is also exploring the possibilities of offering value added products to new

markets and new customers.

Threats

There has been a substantial increase in the production volumes of Pork Skin Gelatin. The

increased availability of this type of Gelatin is likely to adversely affect the demand of

Bovine Bone Gelatin.

Also Gelatin alternatives such as HPMC and starch based products pose a great threat to the

future of the industry

Conventional photography is making way to digital photography and a steady decline in this

market segment has to be anticipated.

Increase in the price of crushed bone and furnace oil.

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REVIEW

AND

SUGGESTIONS

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CHAPTER - 10

Review and Suggestions

My short experience at NGIL leaves me an impression that this is one of the leading, well-knit and

networking organizations in the country. It holds a vibrant organizational culture where the

members exercise a shared meaning, which distinguishes this organization from others. The

distinguishing characteristics I could pick up are:

People orientation

Team orientation

Innovation and risk taking

Aggressiveness

Stability

Good production facility.

Good industrial relationship

Qualified and skilled workers.

The company is environment friendly.

Investment in R&D is highly efficient

People orientation

Good incentive systems

Unity between trade union and the company

Workers health and safety are given prime importance

A good coordination exists between different departments

Looking at the overall performance of the company, some of the satisfying areas that could be

highlighted are:

There is a continuous growth of income and turnover of the company. Turnover increased to

Rs.182.47 crores during the year ended 31st March 2009 as compared to Rs 146.38 crores

during the previous year.

The Gross Profit (earnings before interest, depreciation, taxes and write back) for the current

year was Rs.10.141crores as against Rs. 7.9 crores in the previous year.

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There is a continuous increase of sales and exports.

The company proposes a dividend of Rs. 3.00 per share on 8400000 fully paid up equity

shares of Rs. 10/- each of the company for the year ended 31st March 2009.

A few suggestions, which could augment the performance of the company, are:

Since the fluctuation between US$ and Indian rupee are higher, the company should think of

billing in other currencies like Swiss Franc , Euro etc where the fluctuations are

comparatively lower.

The company should expand volumes of production so as to economize on the advantages

of higher production and thereby augment the increasing trend in the domestic sale.

Vibrant presence of NGIL in the international market: Currently NGIL holds only about 8-

9% of International market share. This can be further improved

By attracting new customers with continuous improvement in the international quality

standards of the product and with new strategies.

Control of manufacturing, administrative and selling expenses: raw material cost and the

production cost are increasing year by year. Thus these costs are to be further controlled by

minimizing the wastage and improving the efficiency of workers.

Development of Bamni Plant: Taking into consideration of various facts like better

availability of raw materials, cheap labour, it would be a viable option to develop, extend

and even diversifying the production in the Bamni plant by setting up new and modern

plant.

The company can have a pooled purchasing system for the main raw material, crushed bone

at the Bamni Plant and from there it can be transported to the ossein division to reduce the

landed cost of raw material and cost of production.

The company can convert the Kerala based bone suppliers to captive suppliers by properly

helping them through strategic financial arrangements.

Company may also venture into agro-based diversification programmes.

Focus more on environment improvement: the company may take up more corporate social

responsibility programmes to improve the social status.

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Company may initiate efforts to build new competencies/to enhance the existing

competencies to keep at pace with the growing international competency levels. For this the

activity of the training and development department may be accelerated.

Industrial counseling may be provided to the employees

Group activities such as quality circles, brainstorming, suggestion system etc should be

effectively revived.

NGIL recreation club activities can be made more dynamic and more regressive to motivate

the employees

In the current scenario of swine flu, the company can monopolize the market with updated

pricing strategies.

The gelatin is mainly produced from the pig hide mostly all over the world. The company

uses bovine hide for the same and thus has an edge in the market considering the current

scenario (swine flu).and should utilize this opportunity

to increase their production.

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CONCLUSION

CONCLUSION

From my observation and study I have found that NGIL as an organization has a unique

existence. The organization has imbibed a Japanese culture in the ranks and levels top to bottom.

Right from the Managing Director to the lowest grade worker wear the same uniform. They take

food from the canteen on a uniform menu. They have developed a unique culture of wishing each

employee on his birthday. The Managing Director himself will present the birthday card to the

concerned employee and wish him. All the employees will then shake hands with the employee

conveying their birthday wishes.

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The NGIL management is practising an open door policy, in the sense that any employee can

meet the Department Head or any Senior Executive or Managing Director anytime. The

management has also promoted cross functional teams for better interaction among the various

departments and quicker decisions. This system has found great success in the organization.

The NGIL management believes in the philosophy of transforming employees through

training .With this in view ,the management sets apart a sizeable amount for training .The company

has formulated a well defined training policy and this policy is implemented through a set of

standard operating procedures (SOP’s) . The training department has undergone audits by

regulatory bodies and customers. The training department has been adjudged as an asset to the

organization by these audit

The Company has evolved a participative style of decision making through an Employee

Involvement Scheme and through the working of Cross Functional Teams. These forums provide

ample opportunities even to the lowest level employee to forward suggestions and implement the

same with the full and active support of the Top Management. The employees whose suggestions

are implemented are rewarded suitably. The initiators of three best suggestions in a particular year

are given special rewards

With a view to make the organization eco-friendly, the Top Management has gone a step

forward to get the Gelatin Division and the Registered Office certified under the ISO 14001

guidelines. The certification is expected by September 2009.

On the whole, it is seen that NGIL is a vibrant organization with a global presence. The

organization is poised to make a quantum leap by increasing its turnover from Rs.200 crores to

Rs.500 crores by 2011-12 through various diversification projects .

I wish the organization great success in all its future endeavors.

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Ramya Thomas

BIBLIOGRAPHY

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BIBLIOGRAPHY

1. Dr. Saxena, S.C, Business Administration and Management, Shaitya Bhawan

Publications, Agra, 2007.

2. Terry & Franklin, Principles of Management, eighth edition, AITBS Publishers,

Delhi

3. Kotler, Philip, Marketing Management, Prentice Hall of India pvt. Ltd.

New Delhi, 2007.

4. Maheshwari S.N., Financial Management, 5th Edition, Sultan Chand & Sons,

New Delhi

5. NGIL Manuals

6. Annual Reports of NGIL 2007, 2008, 2009

7. www.gelatin.com.

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10. www.oecd.com