ORGANISATIONAL STUDY ON PAVIZHAM HEALTHIER DIET PVT.

LTD

Submitted to

Cochin University of Science and Technology

in partial fulfilment of the requirements for the award of the

Degree of Master of Business Administration

BY
MUHAMMED ALI JOUHAR
Under the supervision of

Dr. Renjini D.
School of Management Studies

SCHOOL OF MANAGEMENT STUDIES

COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY
COCHIN-682022, KERALA.

JULY 2015

TABLE OF CONTENTS
Chapter

Title

Page No:

No:

One

Two

Three

Four

Introduction
Introduction to the study
Scope of the study

2
3

Objectives of the study

Methodology
Limitations of the study
Analysis Of Business Environment
Analysis of remote external environment
Industry Profile
Industry Analysis
Competitor Analysis
Organizational Analysis

3
3
4

Overview of the Organization

18

Organization Structure

25

Functional Analysis

27

Organizational Analysis

53

6
8
12
15

Observation And Conclusion

Observations and Suggestions

57

Conclusions

59

BIBLIOGRAPHY

60

LIST OF TABLES AND FIGURES

Tables

Page No

Table 1

Competitor Analysis

15

Table 2

Performance Business

23

Figures

Page No

Figure 1

Porters Five Force analysis

12

Figure 2

Corporate Structure

26

Figure 3

Marketing Department Structure

28

Figure 4

Marketing Distribution Channel

30

Figure 5

Human Resource Department Structure

31

Figure 6

Finance Department Structure

35

Figure 7

Production Department Structure

37

Figure 8

Production Process Of Rice

39

Figure 9

Purchase Department Structure

47

Figure 10

Storage Department Structure

48

Figure 11

Logistics Department Structure

51

Figure 12

Quality Control Department Structure

52

CHAPTER- 1

INTRODUCTION

INTRODUCTION

Introduction to the Study

An organization is the act of forming or establishing something, its a group of people
who form a business, club etc together in order to achieve a particular aim. The
organizational study is the examination of how individuals construct organizational
structures, processes, and practices and how these in turn, shape social relations and
create institutions that ultimately influence people
Paddy cultivation was part of the proud culture of Kerala State.Rice is the most important
cereal and staple food produced and consumed in Kerala.The study was conducted at
Pavizham Healthier Diet Pvt. Ltd.Pavizham is the generic name of rice & rice products

produced by 14 individual industries located in about 50 Acres at Aimury in Koovappady

Village. Various varieties of rice & rice products come out of these factories day in and
out. The marketing arm of these companies is Pavizham Healthier Diet (Pvt) Ltd., Apart
from rice & rice products the company also markets Tamarind,salt,coconut oil, rice bran
oil etc., These units are owned by various members of the Nambiyattukudy family.The
manufacturing unit has the most modern technology in rice milling and has imported the
machinery item China and Japan. The products are mainly marketed in Kerala and other
parts of India. The products are being exported to other countries including Europe,
Africa, Gulf and USA.
The study, done for a period of one month from 1 stJune to 15th July 2015, focuses on the
structural and the functional aspects of Pavizham Healthier Diet (Pvt) Ltd., its product
profile, markets and the major competitors in their fields of business activities. The
industry and the environment of the firm is analyzed in detail and the study attempts to
identify the strengths and weaknesses of the firm while exploring its possible
opportunities and threats. Information and data collection for the study was mainly
through the interactions, interviews and discussions with the management, the employees.
Secondary data relevant to the study was also collected through departmental manuals,
Standard operating procedures ( SOPs) and from the reliable websites.

Scope of Study
The study is focused on the manufacturing facility Koovappady unit of Pavizham
Healthier Diet Pvt. Ltd.. The structural aspects, functional aspects of all the departments
like the Finance, Human Resource, Marketing, the inter and intra departmental activities
are covered in this study. Financial data which is kept confidential by the company hence
detailed financial analysis is not done.
This report is mainly on the organization practices adopted in Pavizham Healthier Diet
Pvt. Ltd and to its strength, weakness understand the current practices and make
suggestions for its improvement. It also covers, opportunities and threats in the
organization. The theoretical scope of the study was aimed at covering the functional
departments of the organization.

Objectives of the study

The major objectives of this organizational study conducted at Pavizham Healthier Diet
Pvt. Ltd. are as follows

1. To understand Pavizham Healthier Diet Pvt. Ltd. as a business entity, its background
and its history.

2. To understand the hierarchy of the organization

3. To familiarize oneself with the various departments of the organization.

4. To analyse the organization objectively yet holistically with regard to its strengths,
weaknesses, opportunities and threats.

5. To analyse the present situation of the company and relations between the employers
and employees.

6. To make an evaluation of the overall performance of the firm

7. To get an organizational exposure

Methodology
Sources of Data
There are mainly two types of data used in this organization study such as Primary data
and Secondary data.
Primary Data : The study is on the organization as a business entity and descriptive in
nature. Information and data collection was mainly done through one to one interactions
with the members of the management team, employees. Both formal and informal

methods have helped in the better understanding of the nuances of the business. The study
was done in a systematic manner following a predefined schedule wherein all the
departments were covered one by one. For the interaction with the key personnel and top
management, appointments were fixed and formal interviews were taken
Secondary Data: Secondary data sources like the Departmental manuals, Standard
Operating procedures ( SOPs), Quality Manual, Advertisement materials of the firm were
extensively used in the study. Material data from company website and other websites
hosted by reputed organizations were also used for this study.
Limitations of the Study
Certain limitations faced during the period of study were time available for the project
work was limited,. The confidential nature of certain documents, especially the financial
data or the strategically important information has too prevented this study from
achieving the level of perfection it had aimed at initially. Busy schedules

of the

supervisors, employee had made them unavailable for interactions during the study
which could have really made the study more complete and valuable.

CHAPTER-2

ANALYSIS OF BUSINESS
ENVIRONMENT
ANALYSIS OF THE BUSINESS ENVIRONMENT
Analysis Of The Remote External Environment
No organization can stand alone in this modern era. Many factors from the external
environment could affect an organization. PESTEL analysis is a part of external analysis
when conducting a strategic analysis of doing market research and gives a certain
overview of the different macro environmental factors of the company has to take into
consideration.
PESTEL analysis stands for Political, Economic, Social, Technological, Environmental
and Legal Analysis.
Political Factors :-Government in Kerala had been uncomfortable with external trade
and keen to promote internal self-sufficiency. They had developed a number of
initiatives to bolster rice production, introducing subsidies and legislation to reduce the
trade of cash-crops outside the region. The conversion of paddy fields for other uses was
made illegal, even though many farmers had been finding rice growing increasingly
unprofitable and were keen to move to new crops like rubber. Levels of rice production
had been in steep decline over the previous three decades, but the post-independent
government were keen to put rice at the heart of their agricultural policy - it was seen as
a symbol of their economic autonomy.
Kerala has built a strong set of democratic institutions at the local level, and they have
been a pillar of support for rice farmers in the State.There are two institutions such as
PadasekharaSamitis -the State government initiated a program of group farming for
paddy cultivation and KrishiBhavans institutions of agricultural assistance run by the
State's Agriculture Department which work under the panchayats play a central role in
programs

to revive rice-growing in Kerala. KrishiBhavans distribute seeds and

fertilizers to farmers at subsidized rates throughPadasekharaSamitis. Many rice

manufacturing firms have trade unions. The major trade unions includes INTUC and
CITU.
Economic Factors :-In the present scenario it is difficult to do rice cultivation in the state
due to high labor cost and shortage of labor mechanized transplanting is attracting more
and more paddy farmers in Kerala. There has been an unprecedented hike in the price of
rice over Kerala for the last three years. Price of rice in the open market reached Rs.27-36
per kg in 2013.The price of fertilizers are also making paddy cultivation difficult in
Kerala.By adopting good quality seedlings, adequate use of organic manure, integrated
water and pest management Kerala farmers can increase rice yield and thereby profit
from it.Family dynamics, rising income, increasing exposure to various mass media,
changing food habits with preference for fast foods are reducing the demand for rice.
Minimum support prices announced by the government greatly influence the rate at which
farmers are able to sell their crop. While the Central Government announces MSP for
various crops, State governments can decide to procure a crop at a price higher than that
announced by the Central Government.
Social Factors :-Rice is the staple food of the people of Kerala, and, traditionally, the
cultivation of rice has occupied pride of place in the agrarian economy of the State.
Social factors are one of the key factors affecting a business. Demand of product is
determined by the consumption pattern which is largely influenced by the social factors.
To feed a population of 3.2 crores, Kerala has to produce approximately 38- 40 lakh
tones of food grains every year at the minimum per capita food availability of 320 g ,
while the actual production is only around 6 lakh tones, less than 1/6th of the
requirement. In other words, 84 % of the food grain required for Kerala comes from
neighboring states. Due to high production cost and labor charges farmers are moving
from paddy cultivation to other profitable crops.
Technological Factors:-Technology contributed highly in the development of rice
industry. Now a days bullock drawn and hand operated implements are replaced by
machines like rice planters, tractors and paddy harvest machine. Replacement of low
potential/pest susceptible old varieties are happening by new high yielding varieties with
promising yield potential. Also encouraging cultivation of hybrid rice through

demonstrations and making seed available to the farmers. Innovations are happening in
Bio- Fertilizers and pest management. Genetically modified seeds are available now.
Environmental Factors:-Paddy fields are a vital part of Kerala's environment and
ecological systems. They provide natural drainage paths for flood waters, conserve
ground water, and are crucial for the preservation of a rich variety of flora and fauna. In
several regions of Kerala, paddy cultivation is carried out in a manner that enriches the
specific geographical and ecological features of these regions. For instance,
in kaipad fields in Kattampally in Kannur district, paddy has been traditionally cultivated
in fields filled with saline water. In pokkali fields in the Kochi area, farmers alternate the
cultivation of prawn with paddy cultivation. Other such examples include kole fields in
Thrissur and Ponnani, as well as paddy fields in Meppayar in Kozhikode and Kabani in
Wayanad. The conversion of paddy fields for other uses was made illegal.
Legal Factors:-Legal system for business in India is very flexible. The Department
of Agriculture in Kerala deals with the formulation and implementation of various
programs to augment production of both food crops and cash crops in the State.

Industry Profile
Overview of the Industry. Rice mill industry is flourishing day by day since rice
is an unavoidable commodity for our day-to day life. Kerala is consumer state. We have
depends on other states in order to get paddy. The rice industries are mainly concentrated
at Kalady. There are around 100 rice mills at Kalady alone.
Food processing demands are an industry with quick returns, whose gestation period is
much less than that of other industries. This is also the reason why a large number of NRI
investors have shown keen interest in food processing. In the past seven past years, since
food processing became the new wave industry, many foreign giants have decided to
enter this segment in the Indian market. The changing life style of the people, the increase
in the urban population, the rise in the literacy level and the enlarged T.V coverage has
triggered greater scope for the food processing industry. There is a strong economic
justification for setting up food industry, from the view point of farmers and consumers,
employment generation and industrialization. It should however be admitted, the food

processing industry in India is still in its infancy. Institutional demand, the requirement of
hotels and household consumption comprise the domestic demand for the processed food
industry. The two characteristics governing

consumption of processed food in the

household sector are the change of habits and standard of living of people.
As the structure of the industry, it is noticed that small and big coexist in the industry in
India. The food processing industry covers the entire range from wheat flour, rice milling,
oil extraction, sugar etc., to the latest of the ready to eat kind of tinned and preserved
foods.
The products need to be manufactured and marketed appropriately in order to tap the
domestic and export potentials of rice, wheal, and cereal products, sugar preservations,
confectionery, dairy products, fruits, vegetables, fish, meat, poultry, ice creams, tea and
coffee
According to the confederation of Indian food tread and industry, the food processing
industry is the largest determinant of GPD, accounting for 19% of the total industry
production and employing around 18% of the national labor force.
The industry has being facing a number of constraints, unreliable database for availability
of raw materials, infrastructural limitation, limited research and development support,
difficulties in technology transfer and absorption, inadequate incentives, problems
relating to quality control, implementation of the prevention of food adulteration act, high
cost of product development and promotion, taxation policies that continue to treat this
industry as catering to the elite sections and problems relating to packing.
The policy measures, which the government has sought, are meant to remove those
constraints. It has provided a single window for the industry, which hither to have to deal
with five departments.
The government of India encourages the food processing industry motivated by following
objectives

To input to use the enormous amount of vegetables, fruits and

grains, which were otherwise, go waste for lack of social sales and
storage facilities

To generate rural employment.To bring about a change in the eating habits of

the people, by making them more accustomed to fast and processed foods.

The prospectus for the food processing industry has been bright with growth of
international tourism, change in the consumption pattern in Metropolitan Centers and
enormous export potential.
Global Scenario.Rice cultivation is the principal activity and source of income
for millions of households around the globe and several countries of Asia and Africa are
highly depended on rice as a source of foreign exchange earnings and government
revenue. Rice is the second largest produced cereal in the world. At the beginning of the
1990s annual production was around 350 million tons and by the end of the century it
had reached 410 million tons. Production is geographically concentrated in Western and
Eastern Asia. Asia is the biggest large producer, accounting for 90% of the world
production and consumption of rice. China and India which account for more than one
third of global population supply over half of the worlds rice.
The majority of all rice produced comes from India, China, Japan, Indonesia, Thailand
and Bangladesh. Asian farmers still account for 92% of the worlds total rice production.
More than 550 million tons of rice is produced annually around the globe. In the United
States farmers have been successfully harvested rice for more than 300 years. There are
thousands of strains of rice today including those grown in the wild and those which are
cultivated as a crop.
At least 114 countries grow rice and more than 50 have an annual production of 1,
00,000 tons or more. Asian farmers produce about 90% of the total with two countries,
China and India, growing more than half the total crop. For most rice producing
countries where annual production exceeds 1 million tons rice is the staple food. In
Bangladesh Cambodia, Indonesia, Thailand and Vietnam rice provides 50-80% of the
total calories consumed.
World Top 10 Rice Production Countries

China.

India.

Indonesia.

Bangladesh.

Vietnam.

Thailand.

Japan.

Brazil.

Myanmar

Bolivia
Indian Scenario .Rice is grown in many regions across India. For about 65% of

the people living in India, rice is a staple food for them. Rice is essential to life in India. It
is a part of nearly every meal, and it is grown on a majority of the rural farms.Some
important facts about rice in Indian scenario are as:

India is the 2nd leading producer of rice in the entire world, preceded only by
China.

Indian annual rice production is around 85-90 million tons. Annual consumption is
around 85 million tons.

In India rice is cultivated in both seasons winter and summer.

India is the worlds largest exporter of Basmati rice to Saudi Arabia and other
Middle East countries, Europe, and the United States.

India has the potential to export one million tons of Basmati rice.

West Bengal, Uttar Pradesh, Punjab, Tamil Nadu, Bihar, Orissa, Assam, Karnataka
and Haryana are the major rice producing states. More than 50% of the production
comes from the first four states.
State Scenario.Paddy is cultivated in almost all districts in Kerala .Paddy

cultivation was part of the proud culture of Kerala state. Rice is the most important
cereal and staple food produced and consumed in Kerala. In Kerala you can see vast
green paddy fields. Kuttanad is called as rice bowl of Kerala because of rice cultivation.
Trichur and Palakkad are the other two places in Kerala where large scale cultivation is
done.
The production of rice is declining every year. This is an indication of the problems
faced by the cultivation of Kerala. If proper measures are not being taken to overcome
this situation, then this sector will be abolished from the state within the no time. The
main problem concerning these cultivation are high cost of cultivation and less return
for their products, the products from other states is also affecting them adversely.In the
earlier days rice used to be cultivated almost in all parts of Kerala in three seasons. They
were Mundakan, Virippu and Puncha.
In the present scenario it is difficult to do rice cultivation in the state due to high labour
cost and shortage of labour mechanized transplanting is attracting more and more paddy
farmers in Kerala. Also paddy fields are being converted into filled up land.
There has been an unprecedented hike in the price of rice over Kerala for the last three
years. Price of rice in the open market reached Rs.27-36per kg in 2013.

Industry Analysis
Porters Five Force Analysis

Figure 1
Porters Five Force analysis
Source: Michael Porter, Competitive Strategy, 1980, Adapted from
www.notesdesk.org/encyclopedia

Bargaining Power of Buyers .Rice is unavoidable in Kerala menu the bargaining

powers buyers are less. Almost all keralites are depending upon rice or rice products for
their food consumption. There are large number of buyers in the market. There are
different varieties of rice and more than 25 brands are available in kerala, so the switching
power of buyers are high. The cost of different branded rice are similar, the switching cost
is less. There are no discounts or offers so the profitmargin of buyers are the same. The
company is giving importance to maintain the relationship with customers by providing
products according to their needs and necessary technical assistance.
Bargaining Power Of Suppliers .As kerala depending upon Andra and other
states for our rice requirements the suppliers plays major role in determining the price of
rice. The suppliers are mixing low quality and high quality rice together. The suppliers are
collecting rice from the farmers directly for cheaper price. The bargaining power of
suppliers are high.

Threat of New Entrants .Pavizham is a well established brand,as the cost for
setting up new plant is high, there are less number of new entrants. Because of all other
brands are well established. It will take huge time for new entrants to establish
themselves in the market. There is no restriction for new entrants from government
side.Ensuring market penetration through better distribution while remaining economical
poses another challenge for players who want to enhance their market presence and foray
into new market segments like low income group settlements. Inflation in the prices of
raw materials is another big stumbling block which is limiting not only any increase in
product prices but is also squeezing profit margins. These are the two things that prevent
the new entrants from coming to the industry.
Threat Of Substitute Products .As the rice price are soaring high people are
switching to other products like wheat or wheat products and oats. As people are aware
of carbohydrate rich food which is the main cause for obesity now they are switching to
protein rich food. Substitution of rice with another product is relatively high.
Competition/ Rivalry .The number of competitors are high. There are more than
30 companies are existing in kerala. Industry is growing rapidly as the population rate is
increasing. There are few major players like Nirapara, Mothers Rice, Periyar and these
are major threats to Pavizham.These companies are also providing rice related products.
Sometimes rivals compete aggressively and sometimes rivals compete in non- price
dimensions such as innovation, marketing, etc.
Industry Key Players.The following firms are some of the key players in the industry
Nirapara .Coupled with a social responsibility together with a heartfelt desire to
bring tasty and healthy rice to the traditional Kerala home, the visionary Shri. K.K.R
Karnan established K.K.R Mills in 1976 which has since transformed into the Nirapara
Brand, a name synonymous with quality food for millions of consumers around the
world.
After establishing its name in rice, the company has diversified its areas of business and
employs state-of the-art technology in various other fields and introduced a wide range

of food products into the market under the Nirapara brand umbrella. The brand offers
numerous products other than rice from whole spices to masala powders, vegetables to
pickles which are nutritionally rich and full of Natures goodness.
The other prestigious divisions of KKR group include Vydyaa Ayurveda and herbals, Bik
Herbals & Extractions, Succor Health Care, Solace Research Pvt Ltd, Bikaura Power
Solutions Pvt Ltd, K.K.R Petroleum Products, Five Star Metals Pvt. Ltd, KKB Fencing
Company LLC, Dubai.
Periyar .It was more than three decades ago. The Chirackal family introduced in
Kerala, the idea of packed rice. The Chirackal modern rice mill was started in 1991. The
unit started manufacturing rice and the brand was called PERIYAR, going after the
great

river

Periyar

on

the

banks

of

which

the

company

stood.

The second unit of the Chirackal Agro Mills was started in 1998. The machineries for
this unit were imported from Japan and the same could completely remove the unwanted
black rice. The products of PERIYAR RICE saw huge acceptance among the general
public mainly because of the superior quality. This was achieved due to the very
stringent quality control measures that were introduced in the units right from inception.
PERIYAR is now a household name in India and many Middle East countries.
The company has today expanded its activities into the instant mixes and pickles fields.
The immediate acceptance of the PERIYAR brands has given the promoters a chance to
have more dreams for the future.
Mothers Rice .M/s. Veejay Modern Rice Mill is a small scale industry registered
with the directorate of industries and commerce government of Kerala.Thecompany was
established in the year 1996 for production of paraboiled milled rice.The company has
established itself as a leading par boiled milled rice producer and its products are
marketed in several parts of the country. The company also exports its products to
countries like , Kuwait & Saudi Arabia.The company has an experienced team of
employees who manage the various activities.

The process capacity of the plant is 100 tones paddy per day. Nowadays company decided
to move to new era by modernizing the factory by sortex machine. So company is able to
provide fine quality rice as this machine removes husk, black rice and other elements
from the rice. halls, supermarkets, office buildings, car parking sheds, and virtually any
one, two or three storey building.

Competitor Analysis
Table 1
Competitor Analysis

Company
Years OF Experience

Nirapara
Established in 1976

Periyar
Established in 1991

and hence over

and has nearly 23

1996 and hence

38years experience

years experience.

only 18years

with a better brand

Certification

Production Capacity

Mothers Rice
Established in

experience.

value.
1SO 9001-2008

ISO 9001-2000

ISO 9001-2000

certified

certified

certified

750 Tones/

450 Tones/

200 Tones/

Day

Day

Day

Market Share

35% of the total

15% of the total

10% of the total

Products

market share
Rice, Rice Products,

market share
Rice, Rice Products,

market share
Rice

manufactured

Wheat Products,

Wheat Products,

Sweet Dishes

Sweet Dishes,Pickles

CHAPTER 3

ORGANIZATIONAL ANALYSIS

18
ORGANIZATIONAL ANALYSIS
Overview Of The Organization
Background And History. Pavizham Healthier Diet Pvt Ltd. leading rice
manufacturer quality assured branded rice PAVIZHAM market in Kerala and abroad
by using the modern technology. They are being treated as the provider of rice, the
traditional taste of Kerala due to its superior quality and affordable price. They are
enormously receiving whole hearted supported from the domestic as well as foreign
market irrespective of their income capacity, place of birth, barriers of language, etc. this
contain the company profile , product description and marketing strategy. The orders can
be placed directly from the factory site or through telephone and email as well.
Pavizham is the generic name of the rice & rice products produced by 14
individual industries located in about 50 acres at Aimury in Koovappady village. Various
varieties of rice & rice products come out of their factories day in and out. The
marketing arm of these companies is Pavizham Healthier DietPvt Ltd. Apart from rice &
rice products the company also market Tamarind, salt, coconut, oil, rice bran oil etc.
These units are owned by various members Nambiyattukkudy family and the current
patriarch Mr. NP George, referred as Chairman and his brother NP Antony as Managing
Director. Their father late Mr. Pappachan entered into conventional rice milling is early
eighties, and before could witness the modern rice mill he had established he departed to
heaven. The brothers thereafter jointly along with their mother and other members of
families built up the rice milling empire as the people see now, innovating ideas,
uncompromising stand on quality, a humanistic approach based on Christian values has
over the years seen the various units flourishing and prospering. Modern milling
machinery imported from China, a cogen power plant, a waste water treatment plant
based on CSIR technology makes the mills unique. Company is a pioneer in various
value addition opinions for rice & its by products.
Pavizham is being, treated as the provider of the traditional taste of Kerala due to its
superior quality and affordable price. High nutritional value sortex rice and rice products
are being manufacturing using high and technology to meet our customers needs.
The rice & rice products of the company reaches the malayalees not only in their home
state, but wherever they are be it in US, Europe or Africa. The marketing network of the

19
company is celebrate as it service over 3000 retailers spread all over the state through its
own vehicle fleet and a declare network to motor like Bombay & Delhi.

Policy Of The Organization

Quality Policy :-Quality policy is to manufacture and market the best quality rice
product. This will be achieved by implementing ISO 9001. Quality management system
providing training to all personnel to improve quality as a continual basis for maximizes
customer satisfaction.
HRDPolicy:-To attract and retain competent personnel by providing a productive and
congenial environment, opportunity for growth and compensation comparable with
industry practice.
To build and nature work culture that focus on work entices and commitment to
productivity, cost consciousness and commercial orientation, team work and dedication
and to take pride in the company.
To provide welfare facilities and amenities that will ensure the highest standards of
quality of life both at workplace and outside. To provide opportunities for competence
development on continuous basis by various HRD invention such as in house and
external training programmes.
Environmental Policy:-This organization follows the philosophy of maintaining
harmonious relationship with the environment by adopting suitable technology in
different areas of operation.
To guide the management, we, at Pavizham group, commit ourselves to operate all plants
based on goods process control system with continuous improvements through review of
the objectives and targets and also to conserve natural resource and energy. Minimize
waste and prevent pollution. Promote safely at workplace for all employees and promote
good housekeeping. Be an environmentally responsible neighbor to the community.
Comply with relevant statutory and legal requirements.
Health & Safety Policy :-This organization is committed as far as practical to provide.
A safe healthy and accident free working environment by adhering to safety rules and

20
regulations.All possible preventive steps, precautions and protective measures against
any anticipated hazards.
All safety measure in the operating and maintenance proceeding and all process
technology changes.

Products
1. Long Grain Matta Rice ( Vedi ) . This product is known as Vadiyari in Malayalam.
As the name indicates, the product is long and with rosecolour and is very much liked by
the Malayalies. This rice contains more vitamins and more starch. The cooking of this
variety of rice will take more time and is very tasty.
The cooking time can be reduced by suitable processing the paddy during boiling. This
rice is manufactured out of paddy cultivated mainly in Palakkad district. The product is
prepared according to the specification of each customer. This rice also used for
marketing PAYASAM and also used for marketing PRASADOM in temples.
2.Small Grain Matta Rice ( Unda ) . This product is known as Undayari in
Malayalam. As indicates by the name, the products is short with rose colour but thick
when compared to the former variety and is also very much liked by the Malayalees.
This rice also contain more vitamins and more starch similar to the previous variety. The
cooking of this rice will take lesser time compared to the former one. The cooking time
can be still reduced by suitable processing the paddy during boiling. This rice is
manufactured out of paddy cultivated mainly in Kuttanad areas. The product is prepared
according to the specification of each customer. This has got a white belly and is
preferred by households.
3.Long Grain White Rice ( Jaya ) . This product is known as Jayayari in Malayalam.
This product is long and with similar to the first variety of rice but is having a white
colour. Unlike the first two varieties, this product contains jess vitamins and less starch
when compared to the previous varieties. The cooking of this will take less time and very
soft.

For this reason, it is easy for human consumption and easily digested. The

cooking time can be either increased or reduced by suitable processing the paddy during
boiling. The product is prepared according to the specification of each customer. This
rice is manufactured out of paddy cultivated mainly in state Karnataka and Tamilnadu.

21
4.Small Grain White Rice ( Kranthi ) . This product is known as Krantiyari in
Malayalam. This product is similar to the small Matta rice ( Unayari ) with the only
differentiation in colour. This is white in colour similar to the Jaya rice. This variety of
rice is available throughout the entire country. The paddy required for the production of
this rice is cultivated in almost all the state.
This can be cooked very fast and is very late and soft for the stomach. For this reason, it
is easy for human consumption and easily digested. The cooking time can be either
increased or reduced by suitable processing the paddy during boiling.The product is
prepared according to the specification of each customer.
5.Beaten Rice or Rice Flakes .This product is known as Avil in Malayalam. The patty
soaked in hot water and is roasted using steam and when it is sufficiently roasted, the
roasted paddy is taken to the rice machine to make the product. The product is roasted
once again to increase the life and also to make better in taste. This are packed in plastic
bags and are sealed to maintain the quality of the product until it is consumed. The
product has become very dearer within a short span of time. The product is prepares to
according to the specification of each customer.
6.Rice Powder .This product is known as Avil in Malayalam. The rice is soaked in
water and is powered using the pulverizer machine. The powdered product is graded
according to the fitness and used for making different dishes like Appam, Idly, Dosai,
Puttu, etc. The rice powder is roasted to preserve it for longer period. When it is
sufficiently roasted, it is allowed to cool. These are packed in plastic bags and are sealed
to maintain the quality of products unit it is consumer. The product has become very
dearer within a short span of time. The recipes of each product are painted on the plastic
bags in order to help the user to cook the different dishes very fast.
7.Puttupodi .Makes soft, easy Puttu, one of the best breakfasts in the world. It is a great
healthy food rich in natural nutrients, steam cooked and oil free. The appetizing aroma of
the delicious, natural taste of the rice that wafts through the hot steaming puttu is sheer
delight. Tastes heavenly when complemented with curry, pappads or bananas.
8.ChampaPuttuPodi.Powdered brown rice to make soft and tasty ChampaPuttu with a
temptingly delicious aroma, flavour and colour. Rice in natural nutrients, vitamins and
fibre, this steam cooked, oil free delicacy is the sheer goodness of natural taste

22
complemented with healthy nourishment. Savourit with curry, pappads or bananas. Its
definitely something to feast on.
9.Appam, Pathiri, IdiyappamPodi .Made with the quality rice, it is the delicious natural
goodness and taste makes it perfect for tasty pathiristhatmelt in your mouth, delicious
Appam that are temptingly appetizing and yummy. Idiyappams that are simple
irresistible to devour. Simply to prepare, rich in nourishments and oil free, it is
absolutely healthy too.
10.PalappamPodi .Makes mouth watering palappam prepared with milk to complete
the succulence of soft centredpalappam, laced with crispy edges. Relish the delicacy
with curry or sweetened coconut milk. Rich in taste and natural nourishment, its simply
a treat for your taste buds.
11.Idlipodi .Makes soft, delicious Idlis.A traditional favourite that divinely delicious, the
enticing aroma and the melt-in-mouth succulence of hot steaming Idlits are pure delight.
Relish the heavenly nature taste by complementing with chutneys and hot spicy sambar.
12.Roast Aval .The paddy soaked in hot water and is roasted using steam and when it is
sufficiently roasted, the roasted paddy is taken to the rice machine to make the products.
The product is roasted once again to increase life and also to make it better in taste. The
product has become very dearer within a short span of time.
13.Palada .This product is processed adopting traditional formula, through automatic
equipment. They are dried as a complete protein rich fat free food. Ingredients fine
quality rice only. This is sufficient to make 25 cups tasty payasam.
14.Rice Bran Oil .Pavizham rice bran is a rice grain derivative popularly acclaimed as
the heart oil. It is total healthy, nutritive oil as comprise a unique and optimum
combination of mono saturated, poly saturated fatty acids that are potent cholesterol
reducers, which prevents heart diseases and the powerful antioxidants, regulates the body
metabolism, turning down the ageing process.

23
Business Performance
The Comparative financial statementofthe company is given in the table below.
Particulars

2012-2013

2011-2012

Increase/decrease

Percentage
increase/decrease

a. capital
b. reserve &surplus
Non-current liabilities

1500000
6119791

1500000
3110243

3009548

96.76

Long term
borrowings
Current liabilities

1040800

2850001

-1809201

-63.48

13076997
10333009

12906073
6963009

170924
3370000

1.32
48.39

5383602
00

96716
673014

5286886
67301

98.20
-100.0

37455201

28099057

9356144

33.29

-1087027

-13.98

53230

5.02

46400

260.44

2427443
3700821

14.53
156.07

325258

198.25

3888276
1743
9356144

99.83
00
33.29

1.equity and
liabilities
Shareholders funds

a. short term
borrowings.
b. trade payables
c. other current
liabilities
d. short term
provisions
Total
II. Assets
Net current assets

a. Fixed assets.
6688121
7775148
b. Deferred tax
liabilities.
1113190
1059960
c. Long term loans
and advances.
64216
17816
Current Assets
a. Inventories.
19131850
16704407
b. Sundry debtors
6072003
2371182
c. Cash and bank
balances
489324
164066
d. Short-term loans
and advances
3894753
6477
e.Other current assets
1743
00
Total
37455201
28099057
Source :Pavizham healthier Diet Pvt (Ltd) s Account Books

Comparative balance sheet for the year 2011-12 and 2012-13 shows a satisfactory result.
There was an increase of 96% in reserve and surplus. There was a noticeable increase in

24
debtors portion. The collection policy of the company in the year 2011-12 was not
good.198% increase in the cash in hand is not favorable to the company.
Objectives of the Company
The main objective of Pavizham Healthier Diet Pvt Ltd is to provide more quality
products for reasonable price. It will help to promote sales. For maintaining employees it
is important to provide better wages, better working conditions, maintain good employer
employee relationship etc. Another main objective of the company is to make their
products to reach the interior parts of the Kerala and to make direct marketing to the retail
shops.

To delight customers by providing quality products.

To establish a reputation in the minds of customer.

To solve all the customer complaints in a fast and favourable manner.
To improve productivity by reducing wastage.

Recognition and Certification :

Certificates of Quality System assessment in May 2002.

Safety Award from National Safety Council of India in 2004.

ISO 9001-2000 certification

Award of best unit KhadiUtsav in 2003.

Best Entrepreneur Award from Department of industries and commerce from

Government of Kerala in 2004.

Best Productivity Performance Award in 2006-2007.

25

Drisya Business Excellence Award in 2008.

26
Organization Structure
Organization structure is the pattern in which various parts of components are interrelated
or interconnected. Thus organization structure is the established pattern of relationship
among components or parts of the organization. This prescribes among various position
and activities. The organization structure contributes to the continuity of the enterprise.
Pavizham Healthier Diet Pvt Ltd. follows the functional organization structure. In
functional organization, it occupies a midway position in the line organization. It is mean
of putting the specialist in top position throughout the enterprise. It confers upon the
holder of a functional position limited power of command over the people of various
departments.
A chairman heads the company and Managing Directors manages day to day affairs. They
take all the decision in consultation with the General Manager and other managerial
staffs. They lead the entire company towards attaining the goal and objective of the
company.
Communication Process and Methods .Communication is an essential part
for the success of an organization. There is a very informed and direct communication in
the company. It creates a positive feeling in the mind of the employees. They can use the
extension phones and parallel connection for communication process. They provided
loud speakers in every corner of company for informing the message for the employees.
Communication among for workers is done with the help of circulars, memo, etc. Notice
boards are kept in various departments.
Authority .General Manager and other managerial personnel have authority
in the concern. They can take decision in consultation with their subordinates. Separate
limits have been kept for each one of them. But they cannot take decision, which
involves a financial commitment of over one lakh without the consent of M.D. The
superiors are also having authority to act on matter relating to the subordinates.
Responsibility .Everyone in the organization has his own responsibility. The
duties and responsibilities are given each of the employees upon his appointed. It helps
in deep involvement in the job. Managers head the departments. They are responsible
and accountable for working of their respective departments. They report on the GM.

27
Board of Directors

Managing Directors

Chief Executive Officer

General Manager

Finance Manager

Productio
nManage
r

Marketing Manager

Store

Manager

Branch Manager

Logistic

Manager

HumanMa

Workers

Figure 2
Organization Structure

nager

Operation Manager

Project
Manager

Purchase
Manager

28
Functional Analysis
A function is a series of related activities, involving one or more entities, performed for
the direct, or indirect, purpose of fulfilling one or more missions or objectives of the firm,
generating revenue for the firm, servicing the customers of the firm, producing the
products and services of the firm, or managing, administering, monitoring, recording, or
reporting on the activities, states, or conditions of the entities of the firm.
A function should be

Identifiable and definable, but may or may not be measurabl

Definable in terms of activity, responsibility, and accountability

A function may

Be a major area of control or a major activity of the firm

Be composed of one or more subfunctions

Be performed in one area or in multiple areas

Be performed by an individual, a group of individuals, groups of individuals,

areas of the firm, or the firm itself

Involve one or more distinct, dependent or independent activities

Be identified and defined without being performed

The registered office in Koovappady where the Pavizham Healthier Diet Pvt Ltd.,
consists of the following departments operating under different heads:

Accounts and Finance department

Marketing department
Purchase department
Production department

29

Storage department
Human resource department
Logistics department
Quality control department

Marketing Department .Marketing is considered to be the head of an

organization. It is the most important department in an organization.

One of the

important reasons behind the success of the company is its marketing strategy compared
to their rivals
Marketing manager

Sales manager

ASM. North

Sales Officer

ASM. Central

Sales Officer

ASM. South

Sales Officer

ASM. Other
Product

Sales Officer

30

Salesman

Salesman

Salesman

Salesman

Figure 3
Department Structure : Marketing
Note : ASM Assistant Sales Manager
Nambiyattukudy group market their product under the brand name PAVIZHAM and is
well accepted by the consumers in the market. Now this venture is having
a very strong result oriented and target achieving marketing wing under the direct
supervision of Mr. George and Mr. Antony.
The main areas where the PAVIZHAM product are marketed area at Trivandrum,
Pathanamthitta, Kollam, Alleppey, Kottayam, Idukki, Ernakulam and Kozhikodu district.
Even through PAVIZHAM brand products are marketed in other District in Kerala and
other state like Karnataka and Tamilnadu also it does not reach to the extent as in the
eight district in Kerala mentioned earlier. All the major rice dealers in the above district
are taking rice from Nambiyattukudy group because of the superior quality maintained of
the products throughout the year to the meet the required standard of the consumers. The
proprietary of the unit is now planning to still increasing the quality of the product in
order to attract the best client who deals in rice and rice products.
Analysis of environment
Environment analysis provides an early warning system for the forces which may impact
a companys products and markets in the future. With helps of environment analysis the
company to act upon rather than react to opportunities and threats.
Market Intelligence & Market Research
Market Intelligence helps to analyzing and acquiring information in order to understand
the market to determine the current and future needs, preference, attitude and behaviour
of the market and to asses changes in the business environment that may affect the size
and nature of the market in e future. It also helps to identify successful new products
development early in the process to create company growth and maximize revenues by
finding a balance between costs and prices of products.
Segmenting, Targeting, Positioning

31
Company use the market segmentation, that use to company divide the large market into
small markets that can be reached more efficiently and effectively with products and
services that match customers unique needs. With the help of target marketing the
company can achieve higher sales and stronger position.
Distribution Strategies
The company moves its products through direct selling and distribution. In the local area,
company provides direct marketing and in other areas the distributor will supply the
products. The distributors collect details regarding the movement, quality opinion,
expectation, etc. from retailer and pass the same concerned department. The company has
several schemes and plans for distributors retailers.

Marketing Distribution Channels.

Company

Dealers

Customers

Figure 4
Marketing Distribution Channels.
Pricing strategy
The companies pricing is based on two things such as competition and cost. The
competitive product the company can charge lesser price than its competitors. The other
pricing method is cost based; the products price must cover its cost and also get the profit.
Promotional Activities
The marketing departments organise various promotional activities to increase sales. The
company gives special attention to its promotional activities. The company is spending
more on promotional activities like sales promotion. The promotion activities include
giving incentives to
company sales people, middlemen and their sales force. These activities a value to the
products.

32

Human Resource Department.It is a very important department in every organization.

In Nambiyattukudy group of companies, a manager heads their department. The
following are main function of this department

Human Resource Manager

Executive Officer

Assistant Officer

Clerk
Figure 5
Department Structure : Human Resource
Functions

To provide sufficient numbers of required for the company.

To employee capable persons through recruitments.

33

To give necessary training to the selected persons.

To take necessary steps to resolve grievance of employees.

To ensure employee welfare.

Human Resource planning

Human Resource Planning is the process by which a management determines how an
organization should move from its current manpower position to its desired manpower
position.It helps the Pavizham for anticipating and making provision for the movement of
people into, within, and out of an organization.
Job analysis
Job analysis is the process of studying and collecting information relating to the
operations and responsibility of a specific job. In Pavizham job analysis defines and
documents the duties, responsibilities and accountabilities of a job and the conditions
under which a job is performed.
Job Description and Specification
Job description is a written record record of the duties, responsibilities and requirements
of a particular job. It tells what is to be done and how it is to be done in the
organization. Job specification describes what the job demands of employees who do it
and human factors that are required.
Job design
It is a conscious effort to organize tasks, duties and responsibilities into a unit of work to
achieve a certain objective.
Recruitments
The requirements of employees are done directly by the company through advertisements
in news papers and other media. The company provides chance to existing and employees
to suggest the names of persons for fresh recruitments.
Selection

34
Interviews are conducted for selecting the right people for the company. Generally the
interview board consists of the MD and respective departmental heads. Tests also
conducted to check the still level of candidates.
Training
Training is a continues process in the industry. They have weekly training, sections for
new comers and other have different aspects on every alternate Saturdays, the company
make use of own managers and every year at least twenty hours of training is given by
extend trainers. Training needs are forced by HRD department and every individual is
trained.
Performance Appraisal
The process by which the organization gets information about how an employee is doing
his/her job. The appraisals are conducted by the head of the department and by the
immediate superior. GM and MD of the company scan every one of the appraisal. This
form a basic part for increase of remuneration and promotion.

Health & Safety

Wastes and effluents are disposed properly

Cleanliness is maintained

Proper ventilation and temperature is maintained

Masks are provided for protection against dust.

Cold water facilities are provided in summer and hot in winter

Proper lighting is maintained

Welfare Measures

35
The company gives priority to the welfare of the employees. Some of the other benefits
granted to the employees are medical, employees state insurance schemes, provident
fund schemes, festival bonus, overtime benefits etc. special allowances on occasions such
as marriage, death, etc is also provided.
Workers Participation
Workers are the strength of the organization. The employees of the company are classified
into three categories

Workers

Staff

Workers
Employee Grievance
The HR department gives special care to solve problems of employees at its initial stages
itself. The company follows an open door policy on suggestions and compliances;
management takes quick remedies for resolving the problem.
Personnel Records & Audits
Personal records are maintained for formulating and reviewing personal policies and
procedures. Complete details about all employees are maintained in personnel records
such as name, date of birth, material status, academic qualification, professional
qualifications, previous employment details, etc. It helps to supply crucial information to
managers regarding the employees. The company will follow external audit.
Implementing Organizational Policies
HR Department has to coordinate with line manager and see that the organizational
policies are being implemented in a proper manner. Disciplinary action can be initiated
against employees who are not following organizational rules and regulations. All these
actions are conceived and implemented by the HR department.
Determining Wages and Salaries

36
HR Department is also involved in conducting market surveys and determining the wages
and salaries for different position in an organization. This decision may be taken in
consultation with top management and the HR department.

Finance Department. Finance is defined as the provision at the time when it is

required. Finance is needed for
production of goods and services and their
distribution. It is the lifeblood of an enterprise.
Finance manager heads finance department in this organization. There are various
function carried out by this departments. Finance department effectively does the
function of rising funds, investing them in assets and distribution return earned from
assets to shareholders. Since it is manufacturing concern, it is always in need of cash to
carry out its day to day operations. Even if the firm is having sufficient assets to balance
the liability, to working capital may be the problem if the components of these assets are
not managed properly. Thiscompany not liable to manage their operations without
managements of current assets. Thus working capital management is an important
function of this department.

Finance Manager

37

Supervisor
Cash

Vouche
r

Supervisor
Billing

Account Taxes

Billing

Assistant
Department

Cash

Supervisor
Sales Account

Data
Operator

Figure 6
Department Structure : Finance
The accounting functions of the department including preparation of trail balance on
yearly basis. They also prepare various financial statement like fund flow statement, cash
flow statement etc. managerial reports regarding travelling, telephone expenses are also
prepared.
Functions of finance manager

To raise necessary funds for the smooth flow of production and other activities

Prepare budgets for every year.

Take control measures in order to check the accounts.

Control over all matters relating to finance in the organization.

Prepare and create financial accounts

Such as Trading, Profit and Loss Account and the Balance Sheet.
Keep and maintain financial records

38
Sales figures and records of expenditure would be held by the Finance department and
used by other departments also.
Prepare and plan internal financial information
This would mainly be performed in the case of a budget, which is a financial plan and
can help managers take corrective action.
Analyse current financial performance
How the firm has done in trading or expenses would be analysed primarily using ratio
analysis tools.
Pay creditors
Finance Department would ensure that bills are paid to people the firm owes money to.
Pay employees wages and salaries
Running the payroll system is another important task for Finance to undertake.
Finance department is fully computerised and that enable fast recording, editing, and
alteration of records. Finance manager are expert in arranging necessary working capital
for this smooth flow of operation. The company is selling their products both for cash and
credit. The accounts and finance department ensure that the salaries to the employees are
paid in time. The department is also concerned with the preparation of budgetary control
of the concern. The department ensure that all the entries are properly posted in the books
of accounts.

Production Department.Production denotes the conversation of raw material to

semi finished or finished products with the help of call-in production process. The main
aim of any production system is to produce economically goods and services required by
the customers.

39

Production manager

Supervisor

ElectricalWork
men

Supervisor
Maintenance

MechanicalWork
men

Team leader filling

Team leader process

Workmen
Figure 7
Department Structure :Production

SupervisorWorksho
p

Supervisor Boiler

Workmen
Workshop

Team leader loading

Boiler

40

The main purpose of production department in Pavizham group is to manufacture various

types of rice products, which is having a better demand from consumers both Kerala and
the international market.
A manager heads the production department. There are different section under this
department like plant, maintenance department, work shop department and boiler
department. All manufacturing function is carried out under this department.
The main objectives of preventive maintenance department and corrective maintenance of
Pavizham group including minimising broke down, minimising long run maintenance
cost providing better working condition and reliable conditions for equipment to perform
at specific technical through service, replacement, repair, etc.
Production department it headed by production managers and is followed by quality
controller and supervisors.

The product capacity of the plant is 75 ton per week.The company can have
good inventory management. The companies have warehousing facilities.

With the help of computer technology the company can handle its functioning in proper
manner. The company can use Tally software for its process.

41

Production Process of Rice

RawPaddy

Paddy Cleaner

De-stoner

Cleaned Paddy
Elevator

Metal Cruty
Cleaned Paddy

Par Boiling Tank

Drying Plant
Storage Dry
Paddy

HeatExchanger
Paddy Dryer
Machine

Blower
Elevator

Husk Removal
Paddy
Cleaner
Machined

Milling Section

Bran Removal
Polishing

2nd Phase Destoner

Elevator
Machine

42

Color Sortex
Machine

Packing section

Direct Marketing

43
Production Process Of Rice The manufacturing process of part boiled
rice is generally divided into five sections namely;
Figure 8

Raw Paddy Cleaning Section

Par Boiling Section

Drying Section

Milling section

Packing section

Raw Paddy Cleaning Section

The raw paddy in gunny bags is discharging to the raw paddy storage tank manually. The
paddy discharged to the tank is collected by a raw paddy elevator transfer the paddy to
raw paddy cleaning machine such as vibrating, cleaning, sieve, double de-stoner and the
blower. This machine removes lumps of soil, stones stalk and chaff of the paddy by
vibrator, motions. The bowler attached to this unit removes lightweight foreign material.
The cleaned paddy from this section is stored in storage tank by elevator.
Par Boiling Section
Par boiling is one of the critical processes which determine the quality and test of
parboiled rice. Even though, we are using superior quality paddy, the precise control of
temperature, pressure, time and water requirement of par boiling is required for getting
quality par boiled rice. Par boiling involves soaking steaming.
Paddy to impart a desire flavour to it and to increase out turn. It reduces breakage in
milling, improves storages life and help in the preservation of to vitamins and protein in
the rice grain. Pure water is pumped in to the par boiling tank. Then cleaned paddy from
the storage tank is fed into boiling tank under gravity. When paddy falls into the water
matured paddy will go to the bottom of the water in the tank and unmatured paddy and

44
other light foreign particles such as stalks and chaffs will float in the water. This will be
removed manually. Then this paddy along with water will be steamed 600 e to 800 e by
the steam generated in the boiling and key as half boiled condition for nearly six hours.
After six hours the water will be drained out from the conical shaped par- boiling tank
through a pipe fitted at the apex of the conical tank. Again steam from the boiler is
supplied to the boiling cone by steam controlling valve so that the paddy gets par boiled
within 3 hours. Here the temperature and purse of the steam supplied will be precisely
controlled so that heat input never eveed the predetermined level, which is fixedbase on
the nature of the paddy, otherwise paddy may over boiled and it deteriorate the quality of
rice and increase wastage during milling.
Drying Section
The boiled paddy is then discharged to conveyor belt though the bottom cone portion of
par boiling tanks. The unloaded boiled paddy is then taken by an elevator and is loaded
into the drive. The driver is thickly packed with stainless steel V port boxes. The heat
exchange extracts heat from the steam and transfers to air from blower. The hot air from
the steam heat exchange is passed though the stainless steel V port boxes so as to keep
it hot at 90c to 120e. When the boiled paddy is loaded to the top of tall drier, slowly if
falls in between the hot-tempered It hot at 90c to 120e. When the boiled paddy is loaded
to the top of tall driver V port boxes towards the bottom of the drier. With the help of
the conveyor, again it is taken to the top of the drier. The paddy will not fall straight from
top to bottom. It would be falling in a curved path in between the hot, V port boxes.
The moisture, in the paddy will be evaporated and the help of elevator, the paddy will get
dried.
When the paddy is dried to the required moisture ie, about 14% moisture level. It is stored
in dried paddy storage tank.
Milling Unit
Husking refers to the removal of husk from the rice grains, rice milling is undertaken to
remove the husk and specified percentage of bran from seeds and endosperm.
Four principles rice milling method are employed in India.
Hand pounding .This method involves the pounding of paddy with poles or a
pestle and mortar.

45
Huller mill .The heart of huller rice mill is a fluted metal rotating with 500 to 600
rpm, which is a hollow stationery cylinder. Husk and bran are removed in one operation
by abrasive action. A second and third pass polishes the through the machine.
Sheller mills .An under run disk Sheller consists of low stones composition wheels
each 18 to 56 in diameter and laid on top of another. The bran is removed by polishing
cans or rice hullers.
Rubber roller mill.Each mill consist of pair of rotating rubber rollers between
which paddy is poured at 1 to 4 tone for hours, depending on the design of the mill.
Shelling results from the abrasion created by the two roles turning at slightly different
speed.
In the section dried paddy from storage tank is fed to rotary cleaning sieve with blower
and then to suction Type dry-stoner by elevators, which removes the stones chaff from
the dried paddy. The high density foreign particles are removed by vibratory and sieving
action. The light weight participles are removed by section. This cleaned paddy is
conveyed o the rubber roller Sheller for dehiscing by vertical elevators. The husk is
removed between two rubber rollers without affecting the shape of the rice. By using
rubber roll Sheller we can minimise the percentage of the broken rice product the
process. About 4% to 20% of the paddy remains unhusked. The mixture is conveyed to
husk paddy separator and then to paddy separator by vertical elevator. The blower
attached to the Sheller collect the husk and stored in husk storage tank. This husk is used
as a fuel for steam boiler.
The husk paddy separator and paddy separator separate the brown rice from husk and
paddy. The husk separated in this separator is also collected in the husk storage tank. The
paddy separate here in discharged at a third point and is send back to the rubber roll
Sheller for further dehusking.
Elevator conveys the dehusked brown to vertical rice whitener where the outer layer of
bran is removed by emery roller. The bran is sieved and separated. It is collected in the
bran room. The discharge from the whitener is supplied to rice grader where the broken
and black rice are separated and collected. The rice from grader is fed to vertical rice
polisher for future polishing. Here the rice is polished again by emery-coated rollers.
This polishing will give elegant appearance to rice.

46
Packing Section
The rice, which comes to the packing section, may be of different size and shape. The
grading unit separated milled rice (mixture of different size whole grain, head rice and
broken rice0 by a sieve grader. The cleaned and polished rice collected in the rice storage
tank of capacity 25 Mts manually weighted and bagged into 75 kgs, 50 kgs, 10 kgs, and
5 kgs by using electronic weighed scale and bag closing machine.
Production Process of Rice Powder
The manufacturing process of rice powder is generally divided into the following section
namely;

1. Raw rice cleaning section

2. Rice washing section

3. Pulverizing section

4. Roasting section

5. Packing section
Rice Cleaning Section
The foreign particles from raw rice are removed by vibratory and sieving action.
Rice Washing Section
The cleaned rice is washed with fresh water.
Pulverizing Section
The washed rice is powered by using pulverize.
Roasting Section
The pulverizing rice is roasted in a stainless steel steam jacketed roasted.
Packing Section
This roasted rice powder is packed into .5 kg and 1 kg capacity pouches manually

47

By Products of Rice Mill Industry

Rice Bran .Rice bran is the by product of milling process. Although the bran has
long been recognised as an excellent source of vitamins and minerals, it has been under
utilize as human food and has traditionally been used primarily in animal foods. The
value of rice bran can be increased through understanding of the characteristics and
composition of this component.
Research has shown that oil extracted from rice oil extracted from rice bran contains a
unique complex of naturally occurring antioxidant compounds. These may have positive
health benefits as well as serving to improve food storage characteristics. On the basis of
above objectives Kalady Rice miller consortium Pvt. Ltd., Kalady is now extracting oil
from rice bran and marketing in the name of Leads.
Rice Husk .Company is utilizing the husk in the powder plant to generate electric
powder. After generation the ash from the plant is going from silica conversion. Rice
husk also can be utilized as furnace fuel; it is mixed with cow dung for the preparation of
cow dung cake it is given as cattle feed also.
Production is essential function for a manufacturing company. Without production the
company cant to sale, Production may be two types, one type is raw material converted
into finished goods and another type is work-in- progress or semi-finished goods
converted into finished goods. For these two purposes, every manufacturing unit has
their own production department. These production departments must do the controlling
activities of raw material their allocation, workers, wages, cost of production, etc. are the
function of production departments.
Production department consist of one manager and twenty operators. Production
departments produce various items. Each item has its own separate section for
production. Every department has its own expert to perform the work. The important
steps involved in the production departments are as follows.

A work order is received which contain the details of product to be produced, its
quality, model, delivery date, remarks etc.

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If it accepted the production in charge signs and sends it the departments.

The production in charge sends a material requisition to the store.

A purchase officer purchases the necessary items and kept in the store.

After the details are entered in the order register.

After production, finished product is sending to the quality control unit for
checking the quality of the product.

After getting the approval from the quality department the products is send to the
packaging section.

When packing is completed the packets send to labelling and send to the store.
Delivery is made in the store.

Functions of Production Department

The main function of production management is to control labour cost. But with the
development of factory system towards mechanization and automation, indirect labour
cost increase tremendously in comparison to direct labour cost. The planning are control
of these activities required more expertise and specialisation techniques.
Their function can be classified on the basis of their order;

a) Planning

b) Organising

c) Controlling

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Planning
Planning consist the following;
Production design and development.Deals with issues of converting market feedback
on the requirements pertaining to the type of product to be produced into specifications
and drawings that help in the production.
Production process selection .Helps to evaluate different process options possible to
produce of the product in terms of volumes and variety and other factory to select the
best suited process.
Planning facility location .Helps to evaluate different possible location for
production and selecting the most suitable one that meets the organizational objectives of
producing in required quantities at minimal cost.
Planning facility layout .Refers to studying various options in terms of plant and
machinery layout that enables smooth flow of material for smooth production.
Capacity planning .Deals with the issues pertaining to planning the capacity for the
plant that enables cost-competitive production even with certain degree of fluctuations in
the required volumes.
Production planning .Helps effective plan the production to meet the required
quantities of products within the scheduled time.
Organising
The organising function includes the following;
Work study .Also known as time and motion study that aims at improving the
cycle time
required for producing the product
Material management.The aims at establishing source for required materials in
terms of input materials or consumable at the right time so no delays in production occur
and no unwanted inventories are created.
Purchasing management .It is responsible for making the input material available
in time, at the right price and in the right quantity and quality.
Controlling .Controlling function comprises the following;
Stores management .Refers to managing the stores for input materials,
consumables and finished stocks while avoiding over stocking of material. Stores are also
accountable for recording the stock and consumption for these materials.

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Value analysis .Refers to the process of obtaining possible combination between
cost and required functional specification of the product by assigning a value to every
operation of the production process and identifying the function the product.The helps in
enhancing the value of the product.
Quality control .This is responsible for monitoring the quality requirements of the
product so that no defective parts are passed on the consumers. For this, various systems
associated with the process are assessed to improve them so that no defective parts are
produced.
Maintenance management .This is responsible for ensuring continues production
in terms of machinery and other required infrastructure so that no breakdowns occur to
hamper the production flow.
Inventory management .This is responsible for maintaining minimum inventory
for all critical materials and ensuring no over-stocking takes place.
In the modern times, production manager has to perform variety of functions they are
follows;

a) Design and development of production process.

b) Product planning and control.

c) Implementation of plans.

d) Administration and co-ordination of activities of the department.

e) Responsible for producing necessary goods and services.

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Purchase Department.It is a very important department of this company. The major
function carried out by this department is as follows;

Keep a tag on stop.

Products requisition for separate department.

Finding vendors.

Purchase of products like electronic components, motor/bearing, etc. packing materials,

vehicle spares and stationery etc.

Purchase Manager

Purchase Assistant

Workers

Figure 9
Department structure :Purchase
Functions Of The Purchase Department

52
The purchase manager controls the purchase department. The department contain several
functions and several responsibilities for the purchase manager. They are follows;
Purchase of the raw materials. The main function of the manager is to make
better economical purchasing of the raw materials from the market. The purchased goods
will be high quality and economical and at an affordable price.
Quality of the products .The main function of the purchase manager is to find
and inspect the quality of the product. For this the manager makes several quality tests
and if he satisfied in the quality he give the approval letter to the product.
Inventory control .The main function of the manager is the inventory control the
better way of the Inventory control we control the loss of the product during the process
of the production.
Pricing system .Pricing is an important factor of the product. It determines the
companies whole department. It depends on the quality and quantity of the product.
Pricing is mainly based on the market fluctuations, on-going market, etc.
Purchase register .The purchase manager will have to register the entire
document relating to the purchase. And he prepares all the day to find the stock positions
of the organization.
Budgetary control .The company use the advantages of Net Present Value
method (NPV). Budgetary control is the process of developing a spending plan and
periodically comparing actual expenditure against that plan to determine if it or the
spending patterns need adjustment to stay on track. This process is necessary to control
spending and meet various financial goals.
Storage Department .A proper management and control of material is highly essential
for an effective cost control. A rupee saved on material will directly help to increase
profit.
Material management covers all aspect of material cost, material supply and utilization. It
covers whole range of function involved in converting the raw materials and ancillary
supplies in to finished product

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Store manager

Figure 10

Purchase manager

Data entry operator

Department structure : Storage Department

.
In Nambiyattukudy group of company (Pavizham group), the stores department keeps in
godowns paddy procure from different places. Store department also keeps finished
products till they are dispatched to the market.
Storage
Storage means custody of materials in a scientific manner so that materials can be
located and indicated easily and handled without difficulty.
Identification marks
The materials should be properly preserved to prevent determination in quality, loss,
damages, etc. Packing should be done to protect the materials.
Record keeping
Major records to be maintained in the stores section and how they should be maintained
are briefly explained below.
Day book
Major records of all material are coming in to stock. The entry in the daybook shall be
numbered and entries shall is determined.

54
Stores Receipt Voucher (SRV)
This is a record of receipt of material in stock.
Material Requisition
This is the formal record for issue of materials.
Stores Ledger
It is an important record maintained in the stores for recording all stores transactions in
all chronological orders.
Bin Card
It is the record of quantity usual! Y placed inside the bins or attached to the materials.
Store Verification

It is an important function and helps to proper control over the

materials. It helps to;

Examine the correctness of stock records.

Examine the correctness of value of stock.

Defect, excess, shortage, damage, deterioration from procedure, etc

Locate weakness in stock control and suggest improvements.

Have a moral control over the staff verification of the stores can be done.

The internal auditor does the verification.

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Logistic Department.In the company, the main functions of logistic department
are as follows;

Keeping a track of vehicle

Driver management

Vehicle movement management

Repair shops are provided for repairs and maintenance

Logistic manager

Vehicle

Supervisor workshop

Data entry operator

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Drivers, Cleaners

Figure 11
Department structure : Logistics Department

Workshop workers

57
Quality Control Department.Pavizham rice is more concerned about
quality policy. The quality controller checks quality of the products from at the time of
buying of raw materials to sales of products.
Quality manager

Quality controller

Assistants

Figure 13
Department Structure :Quality Control Department

At the time of procurement of raw materials the company gets good quality paddy only.
The quality controller checks the quality of the product in each stages of the production
and he trains the workers in every week for improving the quality.

Checking of purchased materials quality.

Control of handing, preservation and packing of raw materials and equipments

receipt through shipment of the final products.

Control of manufacturing unit

Establishing points of inspection and tests at selected in the production process.

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Organizational Analysis
SWOT analysis is a structured planning method used to evaluate the strengths,
Weaknesses, Opportunities, and Threats involved in a projector or in a business venture.
A SWOT analysis can be carried out for a project, place, industry or person. It involves
specifying the objective of the business venture or project and identifying the internal
factors that are favourable and unfavourable to achieving that objective. The technique is
credited to Albert Humphrey, who led a convention at the Standard Research Institute in
the 1960s and 1970s using data from Fortune 500 companies. The degree to which the
internal environment of the firm matches with the external environment is expressed by
the concept of strategic fit. Setting the objectives should be done after the SWOT analysis
has been performed. This would allow achievable goals or objectives to be set for the
organization.
Identification of SWOTs is important because they can inform later steps in planning to
achieve the objective. First, the decision makers should consider whether the objective is
attainable given the SWOTs. If the objective is not attainable a different objective must be
selected and the process repeated.
SWOT analysis examines organizational strength and weakness and environmental
opportunities and threats. SWOT analysis is undertaken to understand firms external and
internal environments. A conclusion identification of the relevant enables an organization
to focus its attention on these factors which are intimately related to its mission,
objectives and strategies.
Strengths
Pavizham Healthier Diet Pvt. Ltd is private limited company which mainly deals with
manufacturing of high quality rice. It is an ISO Certified company. The strength of the
company is the workers cooperation and other strength of the company are brand name of

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the company, its high quality product, Low employee turnover, their increasing quality of
manufacturing and better service. Organization could maintain a very good safety
performance. The organization has been receiving safety onwards from the national
safety council of India.
Weakness
Scarcity of raw materials is one of the main weakness of the firm. The firm has no
frequent advertisement to increase their demand for their product. Seasonal change may
create lack of availability of paddy, it is another weakness of the company and they have
a very low budget for advertisement. The company is following ready payment options so
the no of shop are less.
Opportunities
The company has an opportunity to expand its distribution areas and as there is growing
demand for rice they can expand their production unit. By expanding its distribution areas
the company has greater opportunity to enter into wider market. Growing demand of
product and new development in technical field creates an opportunity to the company.
The company introduces promotional programs. The company by going more into direct
marketing has an edge in the market.
Threats
The

main

threat

is

that

high

competition

in

the

market. Availability of

substitutes,Promotional programs of other brands and Obesity caused by high use of rice
are some of the threats mainly faced by the company. Decreasing paddy cultivation and
increasing labour cost are serious threat to the company.

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CHAPTER FOUR

OBSERVATIONS AND
CONCLUSION

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Observation and Suggestions
Observation
Pavizham is the generic name of rice & rice products produced by 14 individual
industries located in about 50 Acres at Aimury in Koovappady Village. Various varieties
of rice & rice products come out of these factories day in and out. The marketing arm of
these companies is Pavizham Healthier Diet (Pvt) Ltd, Apart from rice & rice products
the company also markets Tamarind, salt, coconut oil, rice bran oil etc., These units are
owned by various members of the Nambiyattukudy family. The manufacturing unit has
the most modern technology in rice milling and has imported the machinery item China
and Japan. The products are mainly marketed in Kerala and other parts of India. The
products are being exported to other countries including Europe, Africa, Gulf and USA.
The industry analysis done as part of the study reveals that rice has a high propensity to
be substituted by substitute products like wheat and oats.Pavizham Healthier Diet (Pvt)
Ltd has a functional type organization with clearly defined departments and three levels
of hierarchy with clearly defined roles. Product quality is one of the strongest factor that
contributes to the immense brand value that Pavizham rice enjoys.
Company has a well organized structure and its functional .There is a good coordination
and cooperation between departments .Maximum preference of quality of products.. The
company is registered under ISO9001.There are 200 employees in the company. Most of
the employees are of more than 23 years. Most of the employees are having more than
2years experience. The company has 2 Trade Unions, namely; AITUC and INTUC.
Female workers are few. The main competitor of the company is Nirapara.
The systematic analysis of the strength and weakness of the company throws up certain
interesting facts about Pavizham. Lack of adequate advertisement and decreasing paddy
cultivation is identified as one of the major factors that hamper the growth in revenue of
the company.

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Suggestions

Company does not involve in more advertising. More advertisement will create
more customer relations and increase sales.

In this organization the employees do not have any common dress code. It is
advisable to follow a common dress code.

In this company there is lack of professionalism in the company. Professionalism

of management was made things systematic and planned.

Due to better relationship between management and employees, absentieesm and

labour turnover is reduced.

There is no separate compliant department. If there is a separate department, it

will help to find out problems and solve them immediately.

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Conclusion
Pavizham Healthier Diet Pvt. Ltd is a leading manufacturer of the assured branded rice.
Pavizham is marketed in Kerala and aboard. It has two independent units for the
manufacturer of rice. The present infrastructure of the Nambiyattukudy group of
companies consists of 14 industrial units. This company is at its strive towards
excellents. It has happened due to the combined efforts of it management and the
dedicated workforce. The company was able to attain the ISO certified for the quality
management ISO 9000. The main positive aspect of is that it could maintain a better
relationship between the management and employees. And the company does not have
any trade union for the

employees and hence no labour problems. The overall study on

Pavizham Healthier Diet Pvt. Ltd reveals that the company is in a good stage which will
lift to a new position instead of falling down.
I got this wonderful opportunity to study and understand the overall functions of
Pavizham Healthier Diet Pvt. Ltd ,during the course of study. I was successful in
achieving certain objectives and could familiarize with an organization and its
environment. This has improved my confidence by its successful completion to
undertake such studies in the future.

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BIBLIOGRAPHY
Kotler, Philip. (1985).Marketing Management. New Delhi: Prentice Hall of India Pvt.
Limited.
Pavizham Healthier Diet (Pvt) Ltd, (2014).Company Profile, Koovappady.Retrieved from
www.pavizhamrice.com.
Periyar rice (2014). Company Profile, Koovappady.Retrieved from
www.periyarrice.com.
Nirapara rice, (2014).Company Profile, Okkal. Retrieved from www.nirapararice.com