OBJECTIVES OF THE TRAINING

➢ To acquire knowledge about the business organization.

➢ To obtain practical knowledge on functioning of this concern.

➢ To observe the performance of workers and executives.

➢ To know the organizational environment.

➢ To find out the problems faced by the company.

➢ To improve the interaction skill.

➢ To motivate the student to start business concern.

HISTORY OF SESAME SEEDS

Sesame seeds are believed to be one of the first condiments as well as one of the first

plants to be used for edible oil.

Sesame seed history

The English term sesame traces back to the Arabic simsim, Coptic

Semsem, and early Egyptian semsent (the latter being listed in the Ebers Papyrus, a 65-

feet-long scroll listing ancient herbs and spices discovered.By the famous German

Egyptologist, Ebers).

The earliest recorded use of a spice-sesame seed-comes from an

Assyrian myth which claims that the gods drank sesame wine the night.Before they

created the earth.

Sesamum indicum, (indicum meaning from india) is native to the

east indies.Usage dates back to 3000 B.C .over 5000 year ago, the Chinese burned

sesame oil not only as a light source but also to make soot for their ink-blocks.

African slaves brought sesame seeds,which they called benne

seeds,to America, where they became a popular ingredient in Southern dishes. Through

the ages,the seeds have been a source of food and oil.sesame seed oil is still the main

source of fat used in cooking in the near and far East.

COMPANY PROFILE

Initiator

V.V.Vanniaperumal had a world track record in the business world of Tamil

Nadu, South India since 1943. He had three illustrious sons who build up the business

empire in edible sesame as traditional family business. This business base was

constructed in the business town – Virudhunagar 30 Kms from Madurai Airport.

Mr.V.V.V.Rajendran sons of Mr. Vanniaperumal were the founder of the

Idhayam group in the year 1986. Hands with an experience of more than 43 years

launched sesame oil in a brand name “Idhayam Sesame Oil”. Now the company has won

several awards for being manufacturing and marketing of sesame oil and sesame oil

cake.

Promoter

After the demise of the founder of Idhayam Mr.V.V.V.Rajendran in 1994 the

business fell on V.R.Muthu and his able and efficient brothers Sathyam and Thendral.

They collectively took change of the group following the same principle of

Mw.V.V.V.Rajendran.

Director

There are three directors in the company and their names are as follows

R.Muthu

R.Sathyam

R.Thendral

Now all managed operations were shared by three directors and now their

sons were also entering into the management and they also shared their operations.

Products of the company

Idhayam not only manufactured the normal sesame oil but also they

introduced superior sesame oil – Idhayam Delit which manufactured on export quality

sesame seeds. Having infiltrated almost every kitchen in Tamil Nadu use only Idhayan

oil and it gain great for this product of ‘Idhayam’ and ‘Delit’ of sesame oil. So the group

expended their business operation by entering into the textile industry. They brand their

textile product as “Rasathe Darling”. The name Rasathe is formed from the structure.

V.V.Rajendran

R.Sathyam

R.Thendral

- RASATHE

A SISTER COMPANY, Rasathe Hosieries was thus born in 1996,to

produce the popular Rasathe Darling nighties. The other products that manufactured by

Idhayam Group is called ‘DOTS’ means

D Delight

O On

T The

S Spot

Organization Structure

PRODUCT PROFILE

‘IDHAYAM’, the name gets its origin from “HRIDAY” a Sanskrit

word which means ‘HEART’, Idhayam sesame oil is a natural cooking medium . It does

not affect the heart and the expansion for the product Idhayam is

IDHAYAM

I - Inspirative

D -Divine

H - Harmonies Development

A - Admirable

Y - Yahoo

A - Almighty

M - Masterstroke

PRODUCT DEVELOPMENT

• Idhayam sesame oil

• Vanga sesame oil

• Mantra peanut oil

• Idhayam hardil

• Idhayam sambani

• Idhayam tahini

• Idhayam wealth

• Idhayam dots

Idhayam sesame oil

The pioneer brand from the house of india’s largest manufacturer of

sesame oil. The speciality about the product is that it is filtered sesame oil but not

refined (repaired) ,keeping in mind the health of the customer.it is light on your heart

too. Idahyam sesame oil is the preferred one not just for cooking but also for massaging.

Vanga sesame oil

PURCHASE OF RAW MATERIAL

Quality sesame seeds are not available throughout the year. So good

quality sesame seeds are carefully sourced from different states during seasons in India.

The quality sesame seeds are acquired from various states such as Gujarat, Andhra

Pradesh, Tamil nadu, Madhya Pradesh etc. Mainly in Gujarat, the high quality sesame

seeds are cropped .The normal rate of sesame seeds is Rs.400 – Rs.600 per bags.

The sesame is different colours such as blacks, white, green, red and rarely

yellow. Each sesame has the different taste so that right quantity and quality of seeds are

acquired to maintain the quality of oil taste. They collect only high quality of sesame

from the different areas so that they can maintain the good quality of sesame oil.

Tender

A tender or a written offer to do a work or to provide a material at a

given price with in a prescribed period and under certain specific conditions.

Single Tender

When the quality is of extreme importance only a reliable firm will be

asked to supply and rate are decided by mutual acceptance.

Limited Tender

When material is required firms which are registered will be invited to

tender their rate and the most economic offer will be considered for placing the order.

In this system the tenders are invited only from some limited firms.

Hence this system is called “ Limited Tender System”.

Purchase procedure

This concern follows single as well as limited tender. In limited tender,

the material specification is provided to the suppliers. The tender box is placed inside the

concern. Receipts of tenders are put in a box.

Then the statement is compared, it is negotiated with concern supplier.

After negotiated the company places the purchase order from to the concern.

Purchase order From

Purchase order is a letter sent to the supplier asking him to supply the

said material. At least 6 copies of purchase order are prepared by the purchase section

and each copy is separately signed by the purchase officer.

Out of these copies, one copy each is sent to the store keeper, to the

supplier, to the inspection, to the account section and to the department placing the

requisition and one copy is retained by the purchase department for record.

STORAGE OF RAW MATERIALS

The raw materials are collected from different states. The high quality

seeds are mainly collected for production of oil .The collected raw materials are stored in

a large godown under one roof. The goods are unloading from the lorry and kept it in the

godown for the safety measures. The godown was constructed with various

precautionary

Safety measures such as theft, rain water etc.

The different types of sesame seeds are arranged according to

their colours. The variety colour and quality of the seeds are noted in a separate register

for each and every lot of goods that they received from their supplier.

Method of Issue

This company follows the FIFO method to issue the material,

material are controlled by EOQ method. Maximum Level, Minimum Level, Re-order

level, Delivery time. Lead time and stock out position are maintained properly by the

store keeper.

Quality control

The pioneer brand from the house of india’s largest manufacturer of

sesame oil. The specialty about the product is that it is filtered sesame oil but not refined

(repaired),keeping in mind the health of the consumers. It is light on your heart

too,Idhayam.

To deliver premium quality sesame oil through continous

improvement in quality with an un compromised level of service. Because of this reasons

Idhayam gets the premium quality product in the minds of millions of consumersin india.

They three types of sesame seeds i.e

➢ Red Sesame seeds

➢ Black Sesame seeds

➢ White Sesame seeds

They maintain perfect Moisture Control through the entire production

process.

They analyse the entire raw material they use only first grade sesame seeds

for manufacturing.

They also control over the Free Fatty Acid i.e (FFA)as per the govt norms in

the gingelly oil it should be 3%. but in Idhayam it is less than 1.5%.

PRODUCTION

The company has three production units. In this sesame oil is

manufactured under their control. The factories are properly maintain by the 3 person

namely V.R.Muthu, V.R.Sathyam, V.R.Thendral.

Traditionally, the sesame oil was manufactures in roller box by

using the bullock. By following the olden technology, the Idhayam group of company

was not able to fulfill its customer needs. So they take a decision to adopt a new

technology. Now the company follows the latest technology in producing sesame oil.

Raw Material

• Sesame Seeds

• Palm Jaggery

There are 3 main process involved in the production they are

1. Cleaning

2. Crushing

3. Filtering

1. Cleaning

At first, the sesame seed are cleaned through special cleaning

system. In this cleaning system, the dust is blown away by passing the speed air. Then

the tiny wastage of sesame seed is separated by the slack movement. Then, from the

cleaning process there is a link between the cleaning and crushing process. The cleaned

sesame seed are passed through the tube to the crushing unit.

2. Crushing

The manual processes are carried out in the crushing unit. The

cleaned sesame seed are getting into the tank of large in size. Palm jaggery is mixed with

the seed in the large tank. The main reason for adding the palm jaggery is for

preservative purpose.

Crushing Unit

Presence of linolic acid (Essential fatty acid) in Idhayam sesame oil

tends to control the cholesterol. So that they have the quality policy to have good product

to consumer.

They have efficient chemist in the lab for verifying each and every

type of sesame seeds and its nature of quality etc. in the lab; they usually test the

Idhayam oil by cooking some food to verify its quality.

The lab test is made by the company production margin. The

sesame has the different types so that the quality must be checked on mixing of various

varieties.

In lab test , the quality are checked by considering some factors

such as free fun fatty acid , peroxide, value , iodine value so that the quality can be

maintained by them.

3. Filtering

The sample oil is taken from the underground tank and it will undergo

to the lab test. Then the oil is gone to the first filter that it contains micro holed slide.

Then the oil is gone to the second filter. Then, sample oil is taken to the lab for testing

their quality. Then the oil is used for cooking as sample for spraying.

Then, the oil is gone to centrifuge filter there they have the tubes of

various sizes and all tubes are joint to the various packing section for the different

machine according to the quantity needed.

Production of sesame oil

YEAR TONNES

1988 2,600

1993 5,300

1999 9,800

2000 11,000

2001 12,284

2002 13,495

2003 12,796

The company show their production turnover around 14,000 tones in the

year of 2005.

PACKING

Packing machines helps to pack the oil on different sizes according

to the quantity.

Pouches:

Special Pack of Rs.5

50ml pack

100ml pack

200ml pack

l Litre pack

Bottles:

100ml cane

200ml cane

500ml cane

1 Litre cane

2 Litre cane

5 Litre cane

PRODUCTION PROCESS

MARKETING

The essence of marketing is an exchange or a transaction intended to

satisfy human needs and wants. Marketing is human activities directed as to satisfy needs

and wants through an exchange process.

The manufacturing and marketing are two important parts of a

body. In few cases manufacturing will be tough and complicated. Unless a method of

marketing is planned the realization become point, which resulted, closes of the unit with

huge losses.

Cash Discount and Trade Discount

When the stockiest makes advance payment to the super stockiest,

they can avail a cash discount of 2%. When a bulk purchase is made, trade discount of

3% is allowed to the stockiest in addition the usual margin.

Fixation of pricing

The head office frame the price chart and that chart is send to

supply to super stockiest and the retailer sell the product as per the specification given in

the chart. So, the in-between rates are the margin (profit) of concerned super stockiest

and stockiest. (See annexure –b)

Advertisement and sales promotion

The success of any product, however good it be, mainly depends

on the advertising strategies and correct positioning of the brand, Idhayam emerged as as

a successful brand greatly because of the advertising principle it had used. The budget

for advertising in 1983 was only Rs.20000/- per month .This shows the importance given

to the company for advertising

Position of Idhayam

Idayam sesame oil is ranked as no.1 by the business line

(14.05.1998) among the edible oil top selling brands in Chennai, Tamil nadu, south

India.

Food product : edible oil

Idayam gingerly oil I

Sun drops II

Sunola III

Godrej cooklite IV

Flora V

Market Segmentation

Market may be classified in to several ways depending on the

customers characteristics. Customers may be grouped on the basis of how they use a

product or service. Thus grouping of customers can also be broken up informs of age,

sex, income, education and geographically. This grouping of customers as segmentating

the market is called as market segmentation.

Channel of Distribution

Marketing channels can be viewed as set of interdependent

organization involved in the process of making a product or service available for use or

consumption.

A marketing channel or trade channel is the mean through which

goods move from the producer or manufacturer to the ultimate consumers are industrial

users.

The channel of distribution includes producers. Wholesalers,

retailers and agents and consumer or industrial users. Generally in this concern, they

follow the channel of distribution as

Tamil Nadu:

Other States:

PERSONNEL For attaining the goals of organization there was a co-ordination of all

employees and all employees.

It covers all level of personnel including blue coloured employs

(operator, packing labour) and white coloured employees (professional, technical

workers, manager, officials and proporiters clerical workers and sales worker.

The blue colour employees were the bottom level management and it

includes skilled labours and excellent machine background, quality and schedule and rest

assured.

The office of Idhayam is the open office. The communication done

quickly with the help of the intercom facilities. There are two buildings for the office

work.

Number of Employees

There are 60 personnel working in the company. The workers are of

office manager. Finance manager, sales manager, personnel manager, cashier,

accountant, peons etc. There are both male and female workers in the office.

In the office they place some proverbs or golden words everyday in

every area in the notice board.

Ex: Think Big.

Function

The three functions of personnel department was main it was

1 Recruitment

2 Retainment

3 Retirement

Recruitment

Recruitment means “a person was induced to apply for the job”.

The candidate who was recruited for a higher position was interviewed

on the basis of the following test

1 Written test

2 Psychological test

3 Work performance

The company has mainly recruited the fresh candidate.

Retainment

The employees are properly retained by the company by giving proper

training.

On the job training means the employee get trained when he was worked

in the job itself. It is mostly given for unskilled and semi skilled workers.

Off the job training was conducted for the executives of the company by

providing seminars and guest lectures.

Wages and Salary Administration

It refers the establishment and implementation of policies and parties of

employee compensation. The wage committee is formed for fixing of wagers to the

employee.

Wages

The company possess both male and female workers. They get their

wages on every 10 days.

Wages period

For each and every employee in this organization the production

department was given wages for them as weekly wages. In office, the salaries are

deposited to the account of the particular concern. The each and every employee has the

ATM card in SBI account.

Category and grade wise salary structure

Workmen grade salary

Rs.2800 to 3000 – at least 3 years experience

Supervisor production grade salary

Rs.3000 to 5000 – at least 3 years experience

Office staff

Rs.5000 to 8000 – at least 2 years experience

Management grade salary

Rs.9000 to 11000 – at least 3 years experience

Provident Fund

The employee’s provident fund Act is in effect from 1952. The main

objective of the act is to help the workers for saving a portion at his earnings and draw

the same after retirement.

The contribution of provident fund by both employee and employees

from their salaries 12% as employee share and the contribution employers share.

Employee State Insurance

The main objective of this Act is to provide certain medical benefits to

employees during sickness maternity and disablement and this is effect from 1948. The

contribution of employees state insurance towards the employers.

Payment of Bonus

This Act was passed in this year 1947 to employees in the manufacturing

units by government. It is a exgretia payment made by employer to their employees to

encourage them in production and create a good opinion on the management.

In V.V.V. & SONS private Limited company 20% of earned salary amount

is paid as bonus. It ia paid to the employees once in 6 months.

Holidays:

Along with Sundays, national holidays and other local festivals

holidays are treated as leave days.

National holidays:

1 Independence day

2 Republic day

3 May day

4 Gandhi jayanthi

Festival holidays :

1 Deepavali

2 Pongal

3 Ayudha Pooja

4 Panguni Pongal

Working hours :

Working time plays a vital role in this company. The worker should

follows punctuality during his carrier.

The working hours of the company are as follows

Working hours - 09.00 A.M - 05.00 P.M

Lunch Time - 01.00 P.M - 02.00 P.M

Tea Break

Tea is provided by the firm to all the staffs and workers at

Morning - 10.30 A.M - 10.45 A.M

Evening - 04.00 P.M - 04.15 P.M

Employee Welfare Facilities

Working condition:

1 Good Temperature

2 Ventilation

3 Lightening

4 Safety complex devices

5 Humidity

6 Sufficient space

7 Locker

Factory sanitation and cleanliness

1 Provision of urinal in factory

2 Provision for the disposal of waste and rubbish

3 Cleanliness

Welfare amenities

1 Provision and care of drinking water

2 Canteen service

3 Lunch during over time

4 Dinning room facilities

5 Rest room

Educational allowances:

All educational allowances is 7.5% on the basis of and it will be

paid to all the eligible employee. The facilities is applicable to the employee who is

having school going children.

Employee health service

Factory health service:

1 Medical examination of employee

2 First aid facilities

3 Treatment of accident

4 Health education and research

Office equipment:

An office appliance refers to the machines used in the office.

Separate table and chair provide for each staff member.

Filling plays a vital role in the management of various affairs of the firm. For the better

control and easy reference, they maintain separate files under several heads. They are

maintaining letters and correspondence file, invoice bill, salary and income tax files.

Stationeries:

Stationeries like note book , TNPEC paper for printing letter pad ,

pen ,pencil , rubber , staplers , pins , jump clip , carbon etc are purchased .

FINANCE

The managing director appointed the finance manager to look after

all financial transaction. The initial investment made in this company is Rs.1 crore

during 1986. The present net worth of the company is more then Rs.10 crore.

Working capital

Working capital has a direct connection with cash flow . The head should

have sufficient fund to cover all the day – to – day expenses such as salary allowances

and traveling expenses.

Accounts:

Accounting is the summary of each and every transactions in the business.

Ledger:

Ledger book is classified into two

Ledger A

Ledger B

Ledger A:

All general expenses and income includes purchase, sales, bank account,

bill exp, other new scheme exp are covered in A Ledger on different heads of account.

Ledger B:

All personal accounts such as deposit, personal exp and personal current

account are entered in this ledger.

OFFICE MANAGEMENT

Cash voucher:

When petty purchases are not covered by a printed bills then cash

vouchers slip is prepared by the head office for petty payments & purchases.

Debit slip:

It is prepared and sends by the head office to the super stockicts to

rectify the error of undercasted bill sent by them to the super stockicts.

Credit slip:

Credit slip is send when the bill is overcasted.

Visitors register:

The visitor who visit the office have to mention date , serial number ,

name of the visitor , name of the company , purpose of the arrival , time of their arrival

and sign .

Incoming and outgoing phone calls:

There has the intercom facilities so that the connection can be made

to the particular people, department etc. The communication is done with the help of

intercom.

V.V.VANNIAPERUMAL & SONS,VIRUDHUNAGAR. BALANCE SHEET AS ON 31.03.2010

LIABILITIES CASH ASSETS CASH

Capital Account

Work contract sales tax

Power Subsidy

Rates & Taxes

TDS

Wind Mill Subsidy

Bank Loan

Sundary Creditors

74180000

1000

679000

6039000

1192000

1438000

153300000

125600000

Deposits

Sterling property

Holiday Resorts

Building

Land

Machineries

Computer

Vehicles

Furniture

Library books

Wind mill

Investment

Grauity fund

Rent advance

Stock in trade

Sundary Debtors

Cash at Bank

Cash in Hand

2800000

31000

58000

30120000

2620000

24530000

280000

2400000

1310000

79000

56800000

1000000

20000

70000

152900000

72131000

14500000

780000Total 362429000 Total 362429000

PROBLEMS

1 The canteen facility available inside the company is not good.

2 Workers fail to use the safety provisions provided.

3 There has no proper two wheeler stand.

SUGGESTIONS

1 A management can provide good canteen facilities to the employee.

2 Separate generator for separate units should be provided in the absence of

electricity.

3 To have proper two wheeler stand for the staff members in office.

4 Management should lay strict rules on using provision that they provide to the

employees

CONCLUSION

The institution training gives really golden opportunities for the students to

get information about the real working conditions of the undertaking. In the 30 days

Training the trainee have learned more about IDHAYAM GROUP OF COMPANIES

and come to know about so many things related to oil mills, which is aiming to run at

profit.

The Trainee observed that this concern has not only reduced the cost of

production but also provided clean environment. Finally, the trainee wants to conclude

that this training program has installed enough confidence and coverage to taken up good

carrier in future.