“ORGANISATIONAL STUDY OF AL MAN HAL

ENTERPRISES KANHANGAD”

A PROJECT REPORT

Submitted by

MOHAMMED SINAN.A

REGISTER NO: NA13BS0051

Under the supervision of

SUJEESH

In partial fulfillment of the award of bachelor degree in

COMMERCE

GTEC COLLEGE FOR ADVANCED STUDIES

KANHANGAD

OF KANNUR UNIVERSITY

JANUARY 2016
 KANNUR UNIVERSITY

BONAFIDE CERTIFICATE

Certified that this project report “ORGANISATIONAL STUDY OF

AL MAN HAL ENTERPRICES, KANHANGAD” is the bonafied Work of

ASHWATH.V, Who carried out the project work under my supervision.

SIGNATURE SIGNATURE

SUJEESH SUJEESH

LECTURER IN ACCOUNTING SUPERVISOR

DEPARTMENT OF COMMERCE

GTEC COLLEGE FOR ADVANCED

STUDIES
 DECLARATION

I MOHAMMED SINAN A, hereby declare that the project work entitled

“ORGANISTIONAL STUDY OF AL MAN HA L ENTERPRICES

KANHANGAD” has been prepared by me and submitted to Kannur University in

Partial fulfillment of requirements for the award of bachelor of commerce, is a

record of original work done by me under the supervision of Mr. SUJEESH,

Lecturer of commerce, GTEC COLLEGE Kanhangad.

I also declare that the Project Work has not been submitted by me fully or partly for

the award of any degree, diploma Title or Recognition before.

PLACE: Signature of the student

DATE: Reg no: NA13BS0051

 ACKNOWLEDGEMENT

This project report would be incomplete without expressing my

sincere gratitude to all those who have supported me in preparing it successfully

I would like to express my sincere gratitude to Mr. SUJEESH, for his

Guidance and support in carrying out this project report.

I express my utmost gratitude to my project guide, Mr.

ANTONY, Head of COMMERCE department who has enthusiastically imparted
relevant Information guided and supported me in carrying out this project.

I would like to express my sincere gratitude to AKHILESH

KUMAR P, Account Department of gtec computer Education kanhangad for his

Guidance and support in carrying out this project report.

I would also like to thank all the faculty members of

COMMERCE Department for their constant support and encouragement.

Final, I would like to thank my parents, dear and near ones and all
my Friends who have helped me in completion of the project report

Place: Kanhangad Mohammed Sinan A

Date:
 INDEX

SL NO CHAPTER PAGE NO
1 INTRODUCTION

2 COMPANY PROFILE

3 DEPARTMENTAL
STUDY
3.1 PURCHASE
DEPARTMENT
3.2 PRODUCTION
DEPARTMENT
3.3 MARKETING
DEPARTMENT
3.4 HUMAN RESOURCE
DEPARTMENT
3.5 FINANCE
DEPARTMENT
ANALYSIS AND
INTERPRETATION
4
FINDINGS,
SUGGESTIONS AND
5
CONCLUSION

BIBLIOGRAPHY
 CHAPTER 1

INTRODUCTION

INTRODUCTION
 A soft drink is a drink that typically contains carbonated water, a sweetener
and a natural or artificial flavoring. The sweetener may be sugar, high fructose corn
syrup, fruit juice, sugar substitutes or some combination of these. Soft drinks may also
contain caffeine, colorings, preservatives and other ingredients.

Soft drinks are called “soft” in contrast to “hard drinks” (alcoholic

beverages).small amounts of alcohol may be present in a soft drinks, but the alcohol
content must be less than 0.5% of the total volume if the drink is to be considered
non-alcoholic. Fruit juice, tea and other such non-alcoholic beverages are technically
soft drinks by this definition but are not generally referred to as such.

HISTORY

The first naturally carbonated drink appeared around 1265 in England. On-
carbonated soft drinks were first marketed in the west during the 17th century. The
drink made of honey, lemon and water. Marketed carried barrels of this drink on their
backs and sold them to the people in town.

In the 18th century carbonated drinks were introduced to the world wanting to
replicate naturally carbonated water. ‘Joseph Priestly’ discovered a method of
infusing water with carbon dioxide to make carbonated water become very popular.
Last on this century, flavors were introduced to water.

In the early 1800s soda water was popular in the United State using a North
apparatus; Benjamin Silliman sold soda by dispensing them in cups and glasses. This
was the birth of soda fountain. Since this was a major success, large factories were
producing soda fountains be the 1830s. Since mineral water was and still is a healthy
beverage, pharmacists set about to improve the taste. They had herbs and used birch
bark, dandelion, sarsaparilla and fruits extracts.
 SOFT DRINK IN INDIA

India is the world’s fastest growing major economy and has already made it to the list
of 10 biggest economy of the world. According to the International Monetary
Fund(IMF), India is the ninth largest economy with a nominal GDP estimated at
around US$ 7.96 trillion PPP in terms of Purchasing Power Purity(PPP), India is the
third largest economy with US$ 7.96 trillion, and that is makes it one of the biggest
markets in the world. India is a major manufacturer and importer of soft drink
beverages. The Indian soft drink industry is a vast and is has been rapidly growing by
the day. No matter what the time of the year it is, soft frink beverages are consumed
in great volume.

ABOUT THE PROJECT

The study of project was conducted in ‘AL MAN HAL ENTERPRISES PRIVATE
LIMITED, KANHANGAD’. It is famous soft drink company in Kerala. It gives a fair
idea about soft drink products and strategies implemented by the company for its
products.

OBJECTIVES OF THE STUDY

 To study the profile of the company

 To study the performance of various department like purchase, finance, human
resources and marketing department.
 To study the overall performance of the organization.
 To study the strength, weakness and opportunity of the company.
 To study the quality technique adopted by the company.
 To give suggestion for the improvement of the company.
SCOPE OF THE STUDY

This project is mainly focused to overall organizational study at ‘ AL MAN

HAL ENTERPRISES, KANHANGAD’. This project is intending to provide
managerial insight to a commerce student. The scope of the study confined to all
department of the organization that is finance, marketing, human resources and
production department.

METHODOLOGY

PRIMARY SOURCES

The data are mainly collected through primary source by conducting direct
interview with staff using questionnaires and observation method.

SECONDARY SOURCES

Secondary sources are company records, journals, magazines and internet etc.

LIMITATIONS

 Detailed study cannot be conducted due to time constrains so that it is difficult

to obtain sufficient data.
 Comparative study with other soft drinks companies could not be conducted
due to time constrain.
 The sources of secondary data are not at all easily available.
 CHAPTER 2

COMPANY PROFILE
 COMPANY PROFILE

Name of the company : AL MAN HAL ENTERPRICES

Date of commencement : 01-october-2011

Brand name and trade mark : HANNA

Registered in : FPO (Food product

Organisation)

Promoter : Mr.K.M.Muhammed kunhi

Proprietor : Aysha hajjumma

Managing director : Mr.K.M.Ashif

Marketing : Arif

Finance : Arif

Accountant : Ranjini

Administrative manager : Govindan

Location : Kallamthol (parappalli)

Kodom-Belore panchayath

Kanhangad, Kasragod(Dist)

Kerala, pin:671672

Head office : Bangalore

Nature of business : Manufacturing of soft drinks,

Aerated water, and pet soda

Insurance : United India Insurance company

ABOUT THE COMPANY

AL MAN HAL Enterprises is a famous soft drink industry in kerala. The

firm is famous in its brand name HANNA. The word al man hal is an Arabic word
which means “wide like ocean” the product name HANNA is also an Arabic word
that means “divine food”. HANNA plays an important role in the customers market
and it is a popular name in the soft drinks market of Kerala and Middle East.

The firm was started on 1 st October 2001 as a partnership firm with two partners
and then converted into sole trading concern. The building was constructed on 1998
December first week. AL MAN HAL enterprises mainly manufacturing three
products they are soft drinks, pet soda and aerated water. The company formed under
SSI Act 1951 and registered in FPO (food product organization)

Mr. K. M. Muhammad Kunhi is the founder and promoter of the company.

The firm was started with an initial investment Rs.1Crore. The firm have got
industrial subsidy of Rs 6 lakh is the contribution from the partners at 60:40 ratio.
And the rest of the amount is loan from KFC and punjab national bank.

The firm is located in Kallamthol, Prappalli, and 6 km away from

Kanhangad. Selection of plant location is an important function in the promotional
stage. The plant should located for maximum plant operating efficiency and
effectiveness. The site of the enterprises selected because of the availability of the
facilities like workers, market, transportation, water, waste disposal facility,
availability nof power, etc.
OBJECTIVE OF THE FIRM

Every organization is set up to achieve some objectives. Objectives

mean the end point of the management program. From this point we can understand
that objective decide where we want to go, what we want to achieve and what is our
destination.

 Maximization of profit through customer satisfaction.

 Increase demand for product through reduces customer’s complaints.
 Give maximum employment opportunity.
 Optimum utilization of modern machinery.

MISSION OF THE FIRM

A Mission describes the organizations basic function in the society, in terms of

the products and services. It produces for its customers.

 Provide healthy drink to the society.

 Provide quality products at affordable price in one time.
 Always care on customers health.
 Providing employment opportunities to local people and increase their
standard of living
 Work for special development.

VISION OF THE FIRM

It is an aspiration of description of what an organizational would like to

achieve or accomplish in the midterm future.

 Build fully automated technology.

 Market expansion program all over in south India.
 New product development.
 Dominate the soft drink industry
 Introduce modern technology
 FACTORY LAYOUT

ACCOUNT
G
MOTOR ANT
MANAGING
A
DIRECTOR
S

CHILLING
MACHINE

MANAGER
SAND MICRO U.V.
FILTER FILTER FILTER

CHECKING STORE
FILTER

PRODUTION UNIT
C
A
N
T
E
E STORE QUALITY LABEL STORE
N ROOM ROOM ROOM
 SWOT ANALYSIS

STRENGTH

 Basic consumer needs

 High demand in rural area
 Quality products
 Efficient workers
 Large and growing markets
 Different flavor and packages
 Low cost
 Non-alcoholic
 Location

WEAKNESS

 Traditinal preservatives
 Narrow range of market
 Low production capacity
 Semi-automated plant

OPPORTUNITY

 New packaging material

 Fully automated plant
 Expand its production to other products like toilet soap
 Start to make bottle cork, perform, and laminated box

THREADS

 Competition from global soft drink industry

 Health issues
 Environmentalism
 Distribution cost
 FUTURE PLAN OF THE FIRM

Now the main plan taken by the firm is enter in to new sector of
business that is toilet soap manufacturing industry. Company has idea for start to
make bottle cork, perform and laminated box with in the firm. Presently the
management gives importance to these future plans. The plant expansion programs of
the firm is to expand its plant with fully automated technology and also increase the
production capacity. For that purpose, company looks land in front of the current
location.
 CHAPTER 3

DEPARTMENTAL STUDY
 DEPARTMENTS

A business normally organized by its function E.g. marketing,

financial, production so on. This is because being grouped together allows the
functions to benefits from specialization and division of labour. This leads to lower
unit’s costs and a greater efficiency. However it can mean that there is departmental
revelry. The functions of ‘AL MAN HAL ENTERPRISES’ can be broadly divided
into departments they are:-

1. Purchase department
2. Production department
3. Marketing department
4. Human resource department
5. Financial department

ORGANISATIONAL STRUCTURE

MANAGING DIRECTOR

PRODUCTION MARKETING HUMAN FINANCE

RESORCE MANAGER
MANAGER MANAGER MANAGER

Supervisor Distribution Supervisor Accountant

agent

Workers Sales man Workers Clerks

 CHAPTER 3.1

PURCHASE DEPARTMENT
 INTRODUCTION

Purchasing is the function of buying raw materials generally supplies, tools,

office stationary and other items. The essential of efficient purchasing are right
quantity, right quality, right time, right price, right source and delivery at right place.
So the purchasing is considered as an art. And the efficiency in purchasing can reduce
the cost of materials or a wrong purchase increases the cost of materials.

RAW MATERIALS PURCHASE DETAILES

The quantity of products mainly on the quality of raw materials. Firm give
extreme care while selecting the raw materials used for making the products. Firm has
trusted suppliers for different type raw materials.

RAW MATERIAL USING IN SOFT DRINKS

 Essence
 Citric acid
 Refined sugar
 Co2
 Hi flow power
 Carbon
 Filter paper
 Label
 Case box / Laminated paper
 Perform

RAW MATERIAL USED IN PET SODA

 Water
 Co2
 Perform
 Cork and Case box
 RAW MATERIALS USING IN AERATED WATER

 Water
 Perform
 Cock
 Label
 Case box

RAW MATERIALS USING IN BOTTLE

 Perform

Bottle Type
2 litter 52gm
500 ml 26 gm
300 ml 23 gm

 Cork
 Label

SUPPLERS OF RAW MATERIALS

NAME OF RAW MATERIALS NAME OF SUPPLIERS

Critic acid, hi flow powder, carbon Mahaveer chemicals Bangalore

Essence Das enterprises Bangalore
Refined sugar Tender agent, Mangalore
Co2 Keerti aerated product, Goa
Cork and perform From Hyderabad and Bombay
Filter paper Bombay
Label and laminated paper Swami offset, sivakasi madras

MATERIAL PURCHASING DETAILS

 Most of the raw materials are directly purchased from the manufacturer and
some of the items are purchased from agents. The firm made purchase only from
selected suppliers based on their past performance and their ability to supply
organizational requirements. Purchases are also made other than selected suppliers in
the case of emergencies only after detailed inspection. For the purchase of raw
materials the firm follows a systematic material purchasing system. And the
purchased materials are recorded in stock ledger. Generally the firm made order on
the basis of production. The production has long expiry date so the firm can store the
material for 3 to 6 months expect sugar is only for a week.

TERMS OF PAYMENT

The firm generally made purchases on credit basis. The suppliers are giving
maximum of one month credit period. The firm using DD and cheque for clearing
suppliers account
 CHAPTER 3.2

PRODUCTION DEPARTMENT

INTRODUCTION
 The production can be defined as the processes and method used to
transform inputs into goods and services. Resources are used in this process to create
an output that is usable for use or exchange value. In short, production is a process by
which goods and services are created. It is considered to be a crucial role in any
industrial organization. In the production process inputs are converted into finished
products. The inputs are raw materials, semi-finished goods, subassemblies, ideas,
information’s, knowledge, capital and utilities.

The firm follows a clear and systematic production system. The firm has the
ability to produce goods with uniform quality at reasonable cost. The production
quantity varies as per the demand.

AL MAN HAL ENTERPRISES produce three types of products in different

flavor and different quantity, they are:-

1. Soft drink (lemon, cola, orange, apple)

 2 liter
 1 ½ liter
 1 liter
 650 ml
 400 ml
2. Pet soda
 2 liter
 1 liter
 650 ml
 400 ml
3. Aerated water
 1 liter

PRODUCTION PROCESS
 Motor

Tank
Motor Sand Carbo Cartri
filter n dge
B filter filter
o
r
w
e Ultra Micro
l violet n filter
l Sub tank
filter

Co2

Chilling
tank
Carbonat
or

Agitator
tank
Air

Filling
Candy man chain
filter Volumetri
c machine Conveyer
Essence s

Packing
Labeling Checking
PRODUCTION PROCESS

The main input or resource of the product is water. So first step in production
process is collect water in tank. The firm mainly depends on borwell water for the
production. The borwell water fills in tank by using high power motors. After the
water collect in tank the next step is water filtration process for that the water firstly
goes to sand filter by help of motor for water purification next the water moves to
carbon filter. It is another tool used for water purification purpose. Then the
purificated water moves to cartridge filter, micro filter and ultra violate filter
respectively for a detailed purification of water. After completing the filtration
process the purificated water store in asub tank. The tank has the capacity to store
maximum of 5000 liters of water.

From the sub tank the purificated water moves to two different areas by the
help of a pipeline. The two areas are one agitator tank and another is chilling machine.
The chilling machine is used for cooling process. From the chilling machine the water
goes to the carbonator. At the same time co2 that stored in a gas cylinder also moves
to the carbonator directly. The co2 and cold water mixed together with the help of
carbonator. Then the mix moves to the filling machine. The filling machine is
operating with the help of air compressor.

At the same time in the agitator tank sugar and water mixed and heating.
Then it goes to the candy man filter for sugar filtration purpose. After the sugar
filtration the sugar mixed water directly goes to essence tank. Here the essence is
mixed. After this process essence syrup moves on the volumetric machine.

Then the bottle is kept on conveyers which help to reach filling machine.
After that the essence bottle filled with gas and water. Then corked by workers and it
is transferred to the checking department. After check the label of the bottle. The last
stage of the production process is packing of the product. After packing the cases are
moved to the store room.

FILTERS USED FOR PURIFICATION

 There are mainly five different type of filters used for the water purification
purpose. Its details are given below:-

1. Sand filters

It is used for water purification purpose. It contains sand form seashore,

black rock chips and white rock chips these things help for the water
purification. The firm replaces the sand in every year.

2. Carbon filter

It is another method used for water purification purpose. It contains carbon

chips and black rock chips. This filter also replacing every in year.

3. Cartridge filter

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

4. Micron filter

It is the 5 layer filter used for filtering the water. Layer indicates the
different size of the filter. It helps for sorting the water. And the filter is replacing in
every year.

Type of layers:

1. 10 micron
2. 8 micron
3. 5 micron
4. 1 micron

5. Ultraviolet filtering
 Water filtering is doing with the help of ultraviolet rays. Ultraviolet light
passing through the water, it helps to heating the water and prevents entering the
germs into the water. The filter contains a rube, the water passing on the tube for
purification purpose.

LITTERS 2 Liters 1.5 liters 500 ml 300 ml

ESSENCE 460 ml 350 ml 120 ml 80 ml

ESSENCE PREPARATION PROCESS

Agitator tank

Agitator tank contain 450 litters water for one batch production. Here 3
quintal of sugar added with 450 liters of water. Heating 60 degree Celsius. Then
add on cup of Hi flow and 3 cup of carbon powder. Then heating 80 degree
Celsius. Hi flow is used for sugar filtration and carbon is used for in order to
remove yellow color of sugar.

Candy man filter

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

After the candy man process filtered sugar water store in the essence
tank for the essence mixing purpose. Then the sugar water is cooling from the
essence tank and essences are adding (essences are orange, coal and lemon)

Volumetric machine
It is used for measuring and filling essence syrup in different levels of
bottle like 2 liters, 500 ml, 300 ml, etc.

Chilling tank

It is used for water cooling process. Water cooling 4 degree Celsius.

Carbonator

It is used for mixing co2 with cold water. Cold water is flowing from chilling
tank and gas separate cylinder. 80 kg gas is used for one batch production.

Filling machine

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

BOTTLE MAKING PROCESS

Bottle making process is started at 2006. Before that the firm was buy the
bottle performs from Hyderabad and assembled from Palakkad. Bottle making
function is a supporting function of main production process.

Air
Blowing machine compressor
Perform rotate
machine

Perform rotate machine

 It is the machines with 6 heaters, heating perform with the help of these
heaters. These heaters are arranged in a systematic manner. Heating performs at240 0
celsius.

Blowing machine

It is a semi automated machine adjusted as per the perform type. Heating

perform passing air into the heated perform for shaping into the bottle.

Air compressor

It is used for passing air into perform for making bottle. 2 kg of bottle air used
for 1 bottle.

MACHINE DETAILS

1. Product making machine

Machine needed for production are purchased from Bangalore, Coimbatore

and Bombay. Most of the machine are purchased from smith industries,
Bangalore.

2. Bottle making machine

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

3. Laminated machine

Laminated machine is using for packing the products. This machine is

purchased from Saravana enterprises, Cochin.

MATERIAL HANDLING EQUIPMENTS

 Material is the important element of production so the material wants to
handle carefully. Material can be shifted from one place to another manually or
mechanically. In which manual movement of material is easiest. But mechanical
handling is generally used by industrial establishments.

Usually there is only one equipment is used in production department. It is

called conveyers. Conveyers are powered devices generally used for moving uniform
loads continuously fro point to point over a fixed path.

MAINTANENCE

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

POWER EQUIPMENTS

Firm is using power from the separate transformers. That is provided by

KSEB as per the minimum guarantee system. Firm has a generator and it is used at
the time of power break. Production process can continue with the help of generator.

SOURCE OF WATER

Water is the important input for the production process. In the beginning
stage firm was using the well water till 2002. After that the firm has been using
borwell water. The fir need maximum of 5000 liter water is required for daily
production.

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

WASTE DISPOSAL

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

The firm gives more important to the pollution free environment. So the
company tries to avoid pollution. So that the firm give more care about waste disposal
system.

PLANT DESIGN

LAYOUT: It refers to the proper arrangement of the various machineries,

equipments, production facilities and employee amenities-in a factory for getting
maximum benefits by eliminating wastage of money, efforts, efficiency and materials.

There are four types of layout- process layout, product layout, group layout
and fixed position layout.

PRODUCTION CAPACITY

Production capacity is mainly depends on the capacity of machines. The

firm is make products as batches. The maximum production capacity in day is 4
batches. Normally the firm is producing 2 batches. It varies based on the demand of
products. And every batch has batch number including manufacturing date. It is used
for production identification.

One batch takes 4 hours for production. The number of bottles in the one
batch is on the basis of volume bottle.
  If produce 2 liter bottle in a batch - contains around 1000 bottles.
 If produce 1 liter bottle in a batch - contains around 1300 bottles
 If produce 500 ml in a batch – The batch contains around 3750 bottles.
 If produce 500 ml in batch – The batch contains around 5625 bottles.

PRODUCTION COST

The costs of production of soft drink include the cost of direct material, direct
labor, direct expenses, Factory over head and administration over head. The cost of
production of soft drink, pet soda and aerated water is given below:-

Soft drink

Type Cost ( in Rs.)

2 ½ liter 60
1 ½ liter 52
1 liter 33
650 ml 20
400 ml 12

Pet soda

Type Cost (in Rs.)

2 liter 20
1 liter 15
650 ml 10
400 ml 8

Aerated water

Type Cost (in Rs.)

1 liter 7

QUALITY ENSURING TECHNIQUE

 Quality refers to the attributes or a property that describes a product. It is
high holding in future of the modern product market. One of the major achievements
of an efficient industry is the ability to market quality goods at reasonable price.
Modern market is highly competitive, and the existence and stand in a market is very
difficult especially in food market. Consumer has a good awareness of their health.
Today who can produce and market the product with high quality they can survive the
market. So the firm always cares about the quality of product. In every stage of
production process it is doing very systematically and also great about the quality of
raw materials using for production.

1. Brisk meter/ refractor meter

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

Normal sugar level of the product

Product Level
Cola 11
Orange 11
Lemon 12
Apple 12

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

2. Total quality management

 The quality management is implementing for ensuring the quality of
product. The employees are also participating in quality measurement. It also
implemented in raw material purchasing system. Every employees has their own
role in TQM

3. PH METER

It used to checking purity of water. The normal PH value of water is 7.filtered

bleaching powder is used for purity purpose.

4. Calibration meter

It is another meter using to check the purity of water.

5. Inspection

Periodical inspection is conducting by the food inspector and factory

inspector without prior information. Inspection is also conducting under FPO for
ensuring the quality of products.

6. Sample keeping

Firm always keeps a sample product from every batch for 6 months. The
purpose of this sample to ensure product will not damage within 6 months because of
the life of product is 6 months.
 CHAPTER 3.3

MARKETING DEPARTMENTS

INTRODUCTION
 Marketing can be defined as the performance of business activities that
direct flow of goods and services from producers to consumers. The present era is of
mass production and mass distribution. Similar products are taken to the market. This
involves stiff competition amongst the producers. Many firms adopt the vagarious
means to maintain their existence in market, as there are many substitutes in the
market. This latency is struggle for the producers for their survival in the modern
business world. All business men aim to make profit by increasing the sales at
remunerative price policy. So the marketing is a vital ingredient for business success.

MARKETING MIX

Marketing mix is the combination of strategy and process adopted for

customer satisfaction. Marketing mix involves four elements; these are otherwise
known as 4 p’s. The p’s are product, price, place and promotion. Let see the
performance of marketing department of the firm and hoe the firm attain the 4 p’s in a
success full way.

1. PRODUCT

“A product is something that is producted by the factory and sold in the

market’. A product may market easily using different in its packing, colour, price, etc.

The consumers are the king of modern market. Every company is look to
make the customer satisfied goods. Who can make the better products based on the
customer satisfaction, they can survive the market. The AL MAN HAL
ENTERPRISES produce three type of product that is

 Soft drinks (orange, cola, lemon, apple)

 Pet soda
 Aerated water

2. PRICING
 Pricing is another important element in marketing mix. “Price is the money
value of the goods and the services”. There is always have an adverse relationship
between the buyer and seller regards price. The buyer always wants to buy at lower
price, but the seller always wish to sell at a higher price. Only when both of them
agree at a particular price, exchange of goods and services take place.

The firm is following the “COST PLUS PRICING” policy. Under this
method, the price is fixed to cover all costs and pre-determined percentage.

PRODUCT PRICE

SOFT DRINK(LEMON, COLA, ORANGE, APPLE)

TYPE Whole sale price MRP

2½ 60 70
2 liter 55 65
1 ½ liter 52 60
1 liter 33 40
650 ml 20 25
400 ml 16 20
300 ml 12 15

PET SODA

TYPE Whole sale price MRP

2 Liter 20 30
1 liter 15 25
650 ml 10 15
400 ml 8 10

AERATED WATER

TYPE Whole sale price MRP

 1 BOX 85 95

3. PLACE OR MARKET

The market of the product is extended in a small area. It concentrates only in

Malabar area. The firm markets their product mainly three districts that is Kasaragod,
Kannur, Wayanad. And it has no export.

DISTRIBUTION CHANNEL

Distribution channels means the way of reaching the product from the
company to the customer. The firm has been following three types of distribution
system.

COMPANY COMPANY COMPANY

RETAILER WHOLESALER AGENT

CUSTOMER RETAILER WHOLESALER

CUSTOMER RETAILER

CUSTOMER

PROFIT OF WHOLESALERS AND RETAILERS

 Wholesalers are the connecting link between the manufacturer and retailers.
They buy large quantities and sell them in small lots to retailers. A wholesaler
generally deals in one or few items. He assembles goods from many sources and does
not sell them directly to consumers.

Soft drinks

Types Commission
(Rs)
2Ltr 5

1.5Ltr 5

500Ml 3.50

300Ml 2.50

Pet soda

Types Commission
(Rs)
2Ltr 10

1.5Ltr 7

1000Ml 10

300Ml 2.50

Aerated water

Types Commission

1 Box 10
Agents

Small sized manufactures who do not have their own marketing department find
it convenient to have an agent for different selling point. The company start agency in
2008. The profit of agents is different to different people. The profit ranged,
maximum up to 13% on distributed p[rice. There are many agents for each are of the
5 districts for the distribution of product. Some agents are;

 S.R.Agency, Kanhangad south

 Dreams market, Kanhangad, Thalipparambu
 Fathima Trading Agency Uppala
 A.S.P Enterprises, Trikkaripur
 Safa Agency Kallanthole
 P.S.Agency, Sulthanbathery, Wayanad
 Indira Agency, Mananthavady
 Jayalakshmi Agency

4. PROMOTION

Promotion consists of those activities that are designed to bring a company’s

goods or services at the favorable attention of customers. The main promotional
activity of the firm is advertisement.

ADVERTISEMENT

Advertising is mass communication of information intended to persuade buyers

as to maximize profit. It is a method of publicity. Its purpose is to inform or influence
them in order to increase the sale of the advertiser. It helps to build grant recognition
and overall company image. The advertising agency of ‘HANNA’ group is located at
Calicut.
  TELEVISION

Visual media are the mass advertising area. Customer can easily understand
about the product through visual Medias with the help of the product ads. It is the best
way of presenting about the product. The customer is attracting on ads. Modern
market is consumer oriented, so most of the companies are spending crores of rupees
in advertisement. The purpose is presenting the product.

 THEATRE
The company is using theatre for attracting the all level of consumers.
 VEHICLE BOARDS
Display the product advertisement on company’s vehicles.
 NEWSPAPERS
The company gives most of the leading newspapers and national and
state level.
 PUBLIC RELATION
 Printing notices to cultural and sport events with product and
advertisement.
 Company is gives sponsorship different programmers.
 Focusing on marriage function Kasaragod.
 MAGAZINE
All those activities which are directed towards promoting sales are called
promotion.
 BANNERS

The company places its products name and brand in busy areas in the form of
flex boards and sign boards. This is the modern method of advertisement. Product
features are presented in a nice and attractive manner in the banner.

PACKAGING
 For the better protection to the product a good packing is necessary. The
company makes bulk packing.

NUMBER OF UNIT IN ONE CASE

Type 1 case
2 ltr 9 pieces
1.5 ltr 12 pieces
500 ml 24 pieces
300 ml 30 pieces
Pet soda 16 pieces

COMPETITOR

The modern world is a competitive world. This competition mainly seen in

markets, similar products are taken into the market. This involves stiff competition
amongst the producers.

Hanna is a growing soft drink company in the market. But the company always
wants to face competition from global companies, they are:-

 Pepsi
 Coca –cola
 Mountain dew
 Cadbury Schweppes
 And other local companies like, Bindu, Neethu, Joy sip etc.

CAPTION

QUENCH YOUR THIRST WITH HANNA

 CHAPTER 3.4
HUMAN RESOURCE DEPARTMENT
 INTRODUCTION

Human resources are considered as the most important resources in any

organization. Because it can function only though people. The success of an
organization depends upon the ability of its human resources. As an organization
human resources are known as human resource management. It is a management
function that helps managers to recruit, select, train and develop members for an
organization. For the effective utilization of human resources a separate department
set up in large size organization. Basically human resource department is a frame
work for helping employees to develop their personal and organizational skill,
knowledge and abilities.

MANPOWER DETAILS

The firm has three types of workers: skilled, semi-skilled, and un-skilled
workers. The workers are mainly from local area. The skilled workers are office staff
they are accountant, department managers etc. the working time of employees is
8.30am to 5.30pm.

Number of workers

Male: 12

Female: 8

Total: 20

Type of workers

Plant workers: 15

Office workers: 5
 SCOPE OF HUMAN RESOURCES DEPARTMENT IN “AL MAN HAL
ENTERPRISES”

Human resource department is a department that help the management and

organization to select appropriate workers and for the development of their skill,
knowledge and ability. AL MAN HAL ENTERPRISES has no separate human
resource department but they do many of its function by the managers.

1. HUMAN RESOURCE PLANNING

It is the function of plan the number of workers required in an organization
for appoint right type of person at the right time.

2. RECRUITMENT
Recruitment is a positive process of searching the required qualifies
persons and stimulates them to apply for jobs in the establishment. There are
several sources of recruitment. It can be classified as internal sources and
external sources.
The firm using the external sources for the recruitment process. It
means seeks suitable candidates outside the enterprise.
 Advertisement:- if any vacancies arise in the organization, advertisements
are given in news papers and call for application.
 By recommendation of the existing employees to the vacancies.

3. SELECTION
Selection is the process of choosing the most suitable persons from all
applicants. Selection process starts immediately after recruitment. The
important steps used for selecting right candidates are:-

 Scrutiny of application:- it is the process of detailed scrutiny of

applications.
  Interview:- it is the powerful exchange of ideas, the answering of
questions, and communicating between two nor more persons. In this
firm interview conducted by the director itse3lf.
 Final selection:- after the interview successful candidates are given
appointment order.
 Training:- it si the process of increasing the knowledge and skills for
doing particular job. The firm gives induction training to the
employees. The method used in organization is on the job traini8ng.
The workers are trained by their supervisors within the organizations.

4. PERFORMANCE APPRAISAL
It is the process of assessing the performance and progress of an
employee on a given job. In this organization supervisor will evaluate the
performance of employees.

5. REMUNERATION
It is important to design and implement suitable wage and salary structure
for the benefit of the employees. The organization is keeping minimum wage
policy. The firm followed time wage system to all employees except bottle
makers. For them piece wage system for is followed. Monthly salary is given
to the office staffs. Management increasing the employees salary in every year
as per profit margin.

6. MOTIVATION
Employees are getting maximum freedom in organization. They are
involving in all activities of the firm. The management is protecting the
employee’s rights and needs. Employee’s ideas are considered for achieving
the organizational goals. Management is using the ‘Y’ theory for motivation.
 7. HUMAN WELFARE ACTIVITIES

 Canteen and restroom

 Safety and health measures:- there is adequate lighting and ventilator
and also have safety measures against the fire. Glues, masks, dresses
are using for safety purpose.
 Providing uniforms
 Sick leaves
 National and festival holidays
 Bonus are given at 3 times in a year
8. INDUSTRIAL RELATIONS
The management gives due consideration for maintaining a harmonious
relationship between management and employees. There is a healthy
relationship between employees and management of the firm.

Eligibility for appointment

 One must be a citizen of India and must have attained 18 years of age
 One must be good health, active habits and free from bodily defects or
infirmity him unfit for the post
 One must satisfy the appointing authority of his character
 Mostly young employees are preferred for plant
 The upper age limit of employee is 40 years in plant

TIME KEEPING SYSTEM

A systematic record is following in the firm master role. It is used to

recording the employee’s attendance.

ABSENTEEISM AND LABOUR TURNOVER

 There is no absenteeism and labour turnover because the workers are getting
enough satisfaction from their jobs. In most of the case management interested in
knowing workers grievances and they take remedial measures to solve their problems.

GRIEVANCE HANDLING

MD has a direct relationship between with every employee. If any

employees have any dissatisfaction of their work, they can directly inform that to the
MD. The MD is always enquiring the work satisfaction of employees and he should
solve the employee’s problem.
 CHAPTER 3.5
FINANACE DEPARTMENT
 INTRODUCTION

Finance is considered the crucial element of any organization. Generally says

that it is the life blood of any type of business. Without finance the business cannot
able to survive and run. So that it is also called the backbone of business. Without
money, there could not be business start up, investments, sustainability or
organizational growth. Therefore, finance requires a proper planning and control to
achieve the objectives of the organization. So that financial management has vital role
in an organization. Financial; management is a managerial activity which is
considered with planning and controlling of firms financial resources.

The finance department has a great deal of influence over business decisions.
The finance department will usually look at quantitative data to give logical and
feasible suggestions. Companies are often on the lookout for potential business risk,
and finance department particularly considered with risks that threaten an
organizational viability. As such business finance department are involved in risk
management operations to identify financial risk and find way ti avoid or minimize
them to keep the company safe.

INITIAL INVESTMENT

Initial investment means the total amount of fund raised on the beginning of
the firm. The company initially was started as a partnership firm and then converted
into sole trading concern. The firm starts with an initial investment of Rs 1 crore. In
which as 60 lakh is the contribution from partners at 60:40 ratios. And rest of the
amount is loan from Punjab national bank and KFC.

BOOKS AND REGISTERS PREPARED BY THE FIRM

 Day book: - It is used to record the daily transactions. All day to day
transaction related with income and expenditure is recorded in this book.
 Sales day book: - It is used for recording all sales details. It includes all
customer details.
  Purchase day book: - it is used to recording raw material purchase details. It
includes all suppliers’ details.
 Creditor’s day book: - it is used to record creditor’s details.
 Debtor’s day book: - it is used to record debtor’s details.
 Purchase return book: - it is used to record all purchase returns.
 Sales return book: - it is used to record the sales returns.
 Pay roll: - it is used to record employee’s remuneration payment details.

REGISTERS

 Stock registers: - it is used to recording the raw material details. The quantity
and price of raw material purchased and purchase return and used in production
process are recorded in this register.
 Production register: - the details of finished goods are recorded in this
register.

BOOKS OF ACCOUNT

1. Ledger

It is used to record all transaction in a separate accounts e.g. sales account,

purchase account etc.

2. Trial balance

It is used for verification purpose. It helps to check the arithmetic accuracy

of accounts.

3. Trading and profit and loss account

It is the financial account of the firm. It shows the gross profit or loss and
net profit or loss of the firm. It prepared based on the trial balance. It helps to find
the progress of business. It prepared at the end of the accounting period.

4. Balance sheet

It prepare at the end of the accounting year. It helps to understand the financial
position of the firm. It shows the current position of all assets and liabilities.
 BUDGET PREPARATION

The company is preparing the budget in two returns, annual budget and
monthly budget. The company is operating the business based on this budget.

AUDITING

The firm follows the annual auditing system with the help of chartered
accountant in Kasaragod. The main auditors of the firm are V.Raghavendra and
MC.Jacob b.com (hons) FCA.

BAD DEBT

The company has 40% bad debts in first 2 year. Most of them are hotel owners.
Now the company follows strict credit policy. Currently the company has only 2%
bad debt.

COST OF SALES

 Telephone
 Transportation
 Carriage
 Commission
 Discount
 Wages
 Food and accommodation

DEPRECIATION
the firm charged depreciation in a written down value method. This method is
also known as diminishing balance method. Under this method, a fixed
percentage is written off every year on the book value of the asset at the
beginning of the year.
 VAT payment system

It is a general consumption tax assessed on the value added to goods and services. It is
a general tax that applied, to all commercial activities involving the production and
distribution of goods and the provision of services. It is a consumption tax because it
borne ultimately by the final consumer. It is not a charge on companies. It is a charge
as a percentage of prices, which means that the actual tax burden is visible at each
stage of production and distribution chain.

The company pays the VAT at different percentage to different product, that is

 Bottle -4%
 Soda -13.5%
 Soft drink -20%

ACCOUNTING PERIOD: APRIL - MARCH

TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR

ENDED 31ST MARCH 2014

particulars schedule amount

Opening stock 4025455

Add purchase 902743.80

K
13052888.80
Less closing stock 4412365.00

8640523.80
Add direct expense 1796132.36

L 10430656.16
less sales 1433961.60

gross profit 3903305.44

Less establishment expenses N
2885433.20

1017862.24
Add investment subsidy 35956.28
proportionally
1053818.50
Net profit
 BALANCESHEET AS ON 31ST MARCH 11, 2014

PARTICULARS SCHEDULE AMOUNT

Source of fund
Capital account of proprietor A 5798792.98
Reserves and surplus B 143825.04
Loans and advances C 2504160.97
Term loan
Mahindra and Mahindra
finance service ltd 355336
Current liability and provision D
Sundry creditors 145080

8947194.99

Application of fund
Fixed asset E 3676753.21
Current asset
Sundry debtors G 685425
Stock in hand work in 4412365
progress I 172651.78
Cash and bank balance
8947194.99
 CHAPTER 4

ANALYSIS AND INTERPRETATION

 DATA ANALYSIS AND INTERPRETATION
Data analysis is the process of identifying the strength and weakness of the company
with the help of information’s and data through different method like personal
interview, observations, etc...It is done by careful and detailed analysis and proper
arrangement of collected data

The term interpretation means explaining the meaning and significance of data so
arranged .it is the evaluation of result obtained from data analysis. It is very useful to
management for decision making purpose. Analysis includes the proper examination
of data collected

TABLE-7 SHOWING THE YEAR BASE PRODUCTION AND MARKETING

OF HANNA SOFT DRINK- 2 LITRE

YEAR SALES PRODUCTION

2010-11 148000 150000
2011-12 190000 200000
2012-13 296000 300000
2013-14 371000 380000
2014-15 454000 460000

CHART NO. 5

500000
450000
400000
350000
300000
250000 PRODUCTION
200000 SALES

150000
100000
50000
0
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

The graph showing the production and marketing of the HANNA soft drink (2 litre)
the production of the soft drink is increased year by year and sales also increases. It is
showing that the demand of the soft drink is high. In the year 2010-11, there is a
highest rate of increase in production; it is around 33% increase in the production.
The sales in volume are also high. There is a 90% sales in every year.
 TABLE-8 SHOWING THE YEAR BASE PRODUCTION AND SALE OF
HANNA SOFT DRINK-1.5 LITRE

YEAR PRODUCTION SALES

2010-11 100000 95000
2011-12 150000 144000
2012-13 230000 220000
2013-14 280000 272000
2014-15 340000 332000

CHART NO.6

400000

350000

300000

250000

200000 PRODUCTION
SALES

150000

100000

50000

0
2010-11 2011-12 2012-13 2013-14 2014-15

The graph showing the production and sale of soft drink of 1.5litre.it also showing an
increase in tendency in both production and sale. There is a maximum sales in the soft
drinks in every year. In the year 2010-11 there is a 95% sales in the company
TABLE-9 SHOWING THE PRODUCTIONS AND SALES OF HANNA SOFT
DRINKS -500ML

YEAR PRODUCTION SALES

2010-11 58000 50000
2011-12 69000 70000
2012-13 98200 100000
2013-14 119800 120000
2014-15 149000 150000

CHART NO.7

160000

140000

120000

100000
PRODUCTION
80000
SALES
60000

40000

20000

0
2010-11 2011-12 2012-13 2013-14 2014-15

The graph showing the increase in tendency in production and sale of soft drinks-
500mlk.Almost 95% sales in 500ml soft drinks because the middle income families
are high and they are 500ml because it has only 20%.The Retailer are more demanded
on this quantity
 TABLE-10 SHOWING PRODUCTION AND SALE OF HANNA SOFT
DRINKS -300ML

YEAR PRODUCTION SALE

2010-11 35000 34250
2011-12 50000 49000
2012-13 75000 74100
2013-14 90000 87000
2014-15 110000 104000

CHART NO.8

120000

100000

80000

#REF!
60000
PRODUCTION
SALE
40000

20000

0
2010-11 2011-12 2012-13 2013-14 2014-15

Graph showing the sale and production of HANNA SOFTDRINKS -300 litre. It
shows that there is a high rate of increase in the production and marketing. The 300ml
in costing Rs 12 which is more cheaper and there are sold through college canteen
because the students were more pre3fer the bottle costing Rs 12.
 CHAPTER 5
FINDINGS AND SUGGESTIONS
 FINDINGS

AL MAN HAL ENTERPRISES is upcoming soft drinks in Kerala. I conduct

my project in this industry. By studying the overall performance of the organization, I
can find out the following points.

 The firm follows an efficient purchasing system.

 There is an efficient management.
 The main market of the product is concentrated only in Malabar area,
especially kasaragod, Kannur and Wayanad.
 The company gives more important to customer’s satisfaction.
 There is a good management employee relationship and the employee gets
maximum motivation. It helps to increase the moral of employees.
 The employees are very dedicated.
 The position of profit of current year shows an increase compared with
previous year profit.
 Production shows an increase of 5% in soft drinks.
 They follow a good accounting system, and they conduct periodic audit with
the help of auditor.
 The main problem of firm is limited production capacity. They cannot produce
as per the demand.
 The firm faces the problem of lack of market expansion.
 The company has only semi-automated plant.
 The company follows only limit promotional activity.
 SUGGESTIONS

 The company can increase its production capacity by using modern

technology.
 The company has to give more importance to promotional activities.
And introduce innovative promotional activities.
 The firm wants to expand its distribution channel.
 Conducting of market survey will help the company to know about
their current position in the market.
 The firm wants to conduct social welfare programs for a good
publicity.
 Use new technology to reduce the cost of production.
 The company’s label design needs to become attractive.
 The management wants to conduct periodic investigation in the
organization to know that the firm is going in the right direction.
 CONCLUSION

Now a day the food industry especially soft drink industry faces many challenges
regarding its health problems. But Hanna has a high demand in Malabar area
especially in kasaragod, Kannur and Wayanad. It is because they market only quality
product and the public interest. But the market of the product is extended only in
Malabar area, so it needs to expand its market operation also in their in other part of
states.

Another thing is that the firm ha s only semi-automated technology and its production
capacity is very low. The firm cannot able to produce as per the demand, so it needs
to increase its production capacity by using modern techno logy. These are main two
problems of the firm. If the firm the can solve this problems the firm will be a biggest
industry in Kerala. And the firm also has more opportunity to expand its business to
the other sector also.
BIBLIOGRAPHY
 BIBLOGRAPHY

 Books

1. PRODUCTION MANGEMENT : K. ASWATHAPPA

AND
K. SHRIDHARA BHAT

2. FINANCIAL MANAGEMENT : I.M. PANDEY

3. MARKETING MANAGEMENT : PHILIP KOTLER
AND
KEVIN LANE
KELLER

4. PERSONAL MANAGEMENT : C.B. MEMORIAL

AND
S.V. GANKAR

 WEBSITES

1. WWW. GOOGLE. COM

2. WWW. WIKIPEDIA. COM