Chapter -1

INTRODUCTION

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1. INTRODUCTION TO THE STUDY
The objective of the study is to make the student familiar to the current industrial scenario.
It provides the student with the first-hand idea on the general working of the organization.
The student gets an environment where he can actualize all the knowledge he has acquired
in his curriculum. The exercise is an opportunity for the student to understand the
organizational structure, the major departments, flow of information and various other
functions in an organization.
Management is the backbone of the Organization. Organizational study is the study of how
the structure of the organization is designed to integrate people with the organization and
to have effective interface with the environment for the accomplishment of organizational
goals. Or we can say that it is a macro analysis of the organization. The proper care of the
organization the higher, middle and lower level of administration is important for any
management to run the business smoothly.
Supreme Food Industries Pvt Ltd. is the company which I selected for organization study.
The study is mainly based on details collected from each department. Each and every
activities of the company are studied carefully with the data available. The data is available
from various sources like past records of the organization, direct interaction with
concerned persons or by personally visiting each department.
During the Roman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sent runners
into the mountains for snow, which was then flavoured with fruits and juices. Over a
thousand years later, Marco Polo returned to Italy from the Far East with a recipe that
closely resembled what is now called sherbet. Historians estimate that this recipe evolved
into ice cream sometime in the 16 century. England seems to have discovered ice cream at
same time or perhaps even earlier than the Italians. “Cream Ice”, as it was called, appeared
regularly at the table of Charles I during the 17th century. France was introduced to similar
frozen desserts 1553 by Italian Catherine de Medici when she became wife of Henry II of
the France.
Supreme Food Industries is one of the largest producers of fresh ice cream, based in South
India. A division of Cousins Group, the business venture was founded in 1990, by 5
closely-knit families. The brand is known across Kerala and in the emerging markets of
Tamil Nadu and Karnataka for its original freshness and unmatched quality, which is
nothing less than world class. Tetra Pak Hoyer, Denmark, are consultants and quality
advisors for the brand. The brand is constantly exploring new and exciting flavours with
new products like ice creams in real fruit shells, fresh fruit ice creams and milk lollies.

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The study will be conducted to identify how they solve problems and how they maximize
efficiency and productivity and also analysis the SWOT of the company. The organization
study comprises different areas that deal with the different aspects of the organization. The
study was conducted from 2nd May 2018 to 2nd June 2018.

1.1 IMPORTNCE OF THE STUDY

The study is mainly based on the details collected from each department. It provides a
better understanding at functional level of each department i.e. quality control, production,
technical, marketing, finance and human resource management. Each and every activities
of the company are studied very carefully with the data available. Apart from that,
researcher gained knowledge of the functioning of different departments and their
interrelationship with each other. This study helped me to familiarize myself with the white
cement segment.

1.2 OBJECTIVE OF THE STUDY

 To get clear cut information about the company’s hierarchical structure.
 To familiar with the product of the organisation.
 To know the SWOT analysis of the organization.
 Study overall functions of the organization.
 To get the practical experience by doing the study in the organization and see the
production process.
 To know the vision, mission and goals of the organisation.

1.3 METHODOLOGY
 Both primary and secondary data collected from the organization.
 Primary data is collected through discussion with employees at various levels.
 Secondary data is obtained from the company’s manuals especially quality manuals
company website and other magazines.
 Direct observation is used to understand the production process.

1.4 LIMITATIONS
 The company is bound to keep the confidential reports in secret
 The non-availability of secondary data is a limitation

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  The production process is continuously, so that the workers are more concentrated on
the work and they have no more time to spend for interaction.
1.5 CHAPTERISATION
The report contains seven chapters namely:
Chapter 1- Introduction
It talks about the importance of the study, the methodology used the limitations of the
study and also about the various objectives of this particular study conducted in
SUPREME FOOD INDUSTRIES.
Chapter 2- Industry Profile
It talks about the various aspects related to the Ice Cream manufacturers and the industry
which contains these products. It also mentions about the history of the industry also.
Chapter 3- Company Profile
It describes the various aspects related to this particular company which includes the
history of the company, the present scenario of the company and also about the products
and their profile.
Chapter 4- Organizational Chart
It displays the hierarchy through the structure and the various posts included in the
particular hierarchy of the company.
Chapter 5- Departmental Analysis
It talks about the six departments present in the company namely the quality control
department, the technical department, the production department, the purchase department,
the human resource department, the marketing department and also the finance department.
And also, about the various functions of these particular department.
Chapter 6- SWOT Analysis
It points outs the Strengths, Weaknesses, Opportunities and the Threats of the particular
company.
Chapter 7- Findings and Suggestions
It describes about the findings and suggestions which has been obtained after conducting
the study in SUPREME FOOD INDUSTRIES. The conclusion is also been given in this
section of this particular

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 Chapter-2

INDUSTRY PROFILE

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2.1 EVOLUTION OF ICE CREAM
Ice cream’s origins are known to reach back as far as the second century B.C., although no
specific date of origin or inventor has been undisputedly credited with its discovery. We
know that Alexander the Great enjoyed snow and ice flavoured with honey and nectar.
Biblical references also show that king Solomon was fond of iced drinks during harvesting.
During the Roman Empire, Nero Claudius Caesar (A.D. 54-86) frequently sent runners
into the mountains for snow, which was then flavoured with fruits and juices. Over a
thousand years later, Marco Polo returned to Italy from the Far East with a recipe that
closely resembled what is now called sherbet. Historians estimate that this recipe evolved
into ice cream sometime in the 16 century. England seems to have discovered ice cream at
same time or perhaps even earlier than the Italians. “Cream Ice”, as it was called, appeared
regularly at the table of Charles I during the 17th century. France was introduced to similar
frozen desserts 1553 by Italian Catherine de Medici when she became wife of Henry II of
the France. It wasn’t until 1660 that ice cream was made available to general public. The
Sicilian Procopius introduced a recipe blending milk, Cream, butter and eggs ate Café
Procope, the first café in Paris.
The first official account of ice cream in the New World comes from a letter written in
1744 by a guest of Maryland Governor William Bladen. The first advertisement for ice
cream in this country appeared in the New York Gazetteon May 12, 1777, when
confectioner Philip Lenzi announced that ice cream was available "almost every day."
Records kept by a Chatham Street, New York, merchant show that President George
Washington spent approximately $200 for ice cream during the summer of 1790. Inventory
records of Mount Vernon taken after Washington's death revealed "two pewter ice cream
pots." President Thomas Jefferson was said to have a favourite 18-step recipe for an ice
cream delicacy that resembled a modern-day Baked Alaska. In 1813, Dolley Madison
served a magnificent strawberry ice cream creation at President Madison's second
inaugural banquet at the White House.
Until 1800, ice cream remained a rare and exotic dessert enjoyed mostly by the elite.
Around 1800, insulated ice houses were invented. Manufacturing ice cream soon became
an industry in America, pioneered in 1851 by a Baltimore milk dealer named Jacob
Fussell. Like other American industries, ice cream production increased because of
technological innovations, including steam power, mechanical refrigeration, the
homogenizer, electric power and motors, packing machines, and new freezing processes
and equipment. In addition, motorized delivery vehicles dramatically changed the industry.
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Due to ongoing technological advances, today's total frozen dairy annual production in the
United States is more than 1.6 billion gallons.
Wide availability of ice cream in the late 19th century led to new creations. In 1874, the
American soda fountain shop and the profession of the "soda jerk" emerged with the
invention of the ice cream soda. In response to religious criticism for eating "sinfully" rich
ice cream sodas on Sundays, ice cream merchants left out the carbonated water and
invented the ice cream "Sunday" in the late 1890's. The name was eventually changed to
"sundae" to remove any connection with the Sabbath.
Ice cream became an edible morale symbol during World War II. Each branch of the
military tried to outdo the others in serving ice cream to its troops. In 1945, the first
"floating ice cream parlour" was built for sailors in the western Pacific. When the war
ended, and dairy product rationing was lifted, America celebrated its victory with ice
cream. Americans consumed over 20 quarts of ice cream per person in 1946.
In the 1940s through the ‘70s, ice cream production was relatively constant in the United
States. As more pre-packaged ice cream was sold through supermarkets, traditional ice
cream parlours and soda fountains started to disappear. Now, specialty ice cream stores
and unique restaurants that feature ice cream dishes have surged in popularity. These stores
and restaurants are popular with those who remember the ice cream shops and soda
fountains of days past, as well as with new generations of ice cream fans.

2.2 WORLD SCENARIO

The annual world trade in milk products (excluding intra-EU) amounts to 33 million tons,
valued at US$ 10 billion. Barely 6 to 7% of the world milk production is traded
internationally. The bulk of the world diary trade is in Cheese, Butter, and Powders. A
growing shift towards cheese is expected in the near future. Two dynamic products with a
substantial projected growth in the coming years are yoghurt and dessert.
The international dairy trade is dominated by four players- EU, New Zealand, Australia
and USA – which together account for 85% of all exports. New Zealand and Australia
export as much as 80% and 50% of their milk production respectively. The Asia-Pacific
region has been and will remain a net milk importer in the foreseeable future. It accounts
for the bulk of milk powder imports and half of the imports of condensed and evaporated
milk. In contrast, most cheese imports go from developing countries such as Japan and the
United States. The dairy industry is regulated in most countries through various ways.
Imports are commonly restricted, and exports are frequently subsidized. High dairy price

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supports in many countries are put in place to stimulate production to the extent that
subsidies for exports are necessitated to maintain domestic dairy programs.
In the United Kingdom, all the milk produced by farmers is procured by cooperatives.
Private dairies are required to buy their milk requirement from cooperatives. New Zealand
has no private sector dairy plants. As many as 90 per cent in Denmark, Netherlands and
Sweden are in the cooperative sector.
In the United States, 70 per cent of the dairy industry is cooperative. Dairy programmes are
subject to Government participation or regulation than most other domestic agricultural
industries in the USA. There are also Federal Milk Marketing orders and movement
barriers in the USA for orderly marketing control, which is associated with stabilizing fluid
market and improving the balance of market power between farmers and handlers. In the
emerging liberalized global scenario, trade distorting agricultural policies have been the
focus of the GATT multilateral trade negotiations. With the liberalization of agricultural
trade under the new GATT regime, the heavy subsidies prevalent in the diary sector in the
countries of the EU as well as in the USA will have to bring down in the next few years.
The market is expected to reach USD 89.5 billion by 2023, growing at a CAGR of 4.9%.  The
rise in income along with an increase in demand for sweet dishes drives the growth of this
market. Unilever dominates the global market with eight of the 15 top selling brands and a
22% share. Nestle is the closest corporate rival of Unilever with four brands in the top 15. The
sales of low-quality ice cream have been declining due to the increased preference for
premium ice cream.
Major trend is the growth of organic ice cream and Low Fat. It is supported by various
technological advancements in the field of cold chain infrastructure, refrigerated transport
systems, storage facilities and equipment. The organic ice market is on the rise due to the trend
of maximizing the nutritional credentials in ice cream, by increasing the organic ingredients in
the ice cream.

2.3 MARKET TRENDS

The new innovative flavours, that the companies have come up with, act as a major driver
for this market. Also, private labelling reduces the price of ice creams, thereby increasing
the demand. The emergence of private label brands such as Kroger has helped in the
establishing the market presence. The rise in demand for ice cream products from
consumers above the age of 50 is another factor that contributes to the growth of this
market. The availability of lactose-free ice creams will enhance the ice cream market.
Consumption of lactose causes several problems such as gas, bloating, and diarrhoea. This

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resulted in several ice-cream manufacturers formulating their lactose-free ice creams to
cater to the niche market of lactose-intolerant consumers. However, health concerns pose a
threat to this market, especially in the developed countries. Unseasonable weather is
another major restraint to this market.

2.4 ICE CREAM MARKET SEGMENTATION

The market is segmented on the basis of product type, which has been further subdivided
by recipe into ordinary (hard), French, reduced fat, light, soft, no sugar added, lactose-free,
gluten-free, and organic ice cream. By shapes, ice creams come in sticks, buckets, sundae,
floats and frozen novelties, which may include frozen custard, frozen yogurt, dondurma,
gelato, sherbet, snow cones, frozen soufflé, etc. By sales, the market is segmented into
impulsive, take-home, and artisanal ice cream. The impulse segment dominated the
market. It accounted for a market share of 39%. Factors such as the desire to indulge in ice
cream and the rise in demand for small portion of snacking options will drive the market.
The report discusses the market revenue in terms of distribution channels such as specialty
stores, independent stores, on-trade, convenience stores, supermarkets and hypermarkets,
etc.

2.5 REGIONAL MARKET ANALYSIS

In 2016, Europe dominated the market with more than 40% share. The global ice cream
sales have grown significantly, with China and Brazil accounting for two-fifths of the
global ice cream sales, while the total volume consumed by Americans declined by 59
million litres in 2015. This is due to the rise in demand for higher-priced artisanal products.
India ice cream market is growing at a fast pace, with brands mostly dividing into one of
the two camps of happiness or health. The market value rose by around 17% in India.
North America is the only region to see lower number of ice cream launches in 2015. The
fact that one in five US consumers are buying fewer frozen treats in 2015 because they
were unhealthy. This illustrates how manufacturers can no longer rely on ice cream’s
indulgent image alone to secure growth.

2.6 COMPETITIVE LANDSCAPE

The market for ice creams is highly fragmented due to the presence of a number of large
and small-scale vendors. The vendors compete for innovation, pricing, and distribution.
The introduction of lactose-free ice cream has further increased competition in this market.

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2.7 MAJOR MANUFACTURING COMPANIES
 Blue Bell Creameries
 General Mills
 Mars
 Nestle
 Lotte Confectionery

2.8 INDIAN SCENARIO

India is an agriculturally based country because of the large number of cattle and large
milk production most of the dairy and ice cream industries has developed and India is well
ranked in the world. Ice cream industry has brought magnificent change in the rural
economy. It provides employment to the marginal farmers. In 1983 when the Indian
Government issued a control in which the certain price level was fixed. It has an important
role in employment generation and reducing the migration of villagers towards the town
and cities for live hood.
India has one of the largest livestock populations in the world. Fifty percent of the
buffaloes and twenty percent of the cattle in the world are found in India. Dairy
development in India has been acknowledged the world over as one of modern India’s
most successful development programme. Today India is the largest milk producing
country in the world. Milk and milk products are rated as one of the most promising
sectors which deserves appreciation in a big way. When the world milk production
registered a negative growth of 2 percent, India performed much better with 4 percent
growth. The total milk production is over 72 million tons and the demand for milk is
estimated at around 80 million tons.
By 2005, the value of Indian dairy produce is expected to be Rs.1,000,000 million. In the
last six years foreign investment in this sector stood at Rs.3600 million which is about one
fourth of the total investment made in this sector. Manufacture of casein and lactose,
largely being imported presently, has good scope. The milk surplus states in India are Uttar
Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka
and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus
states.

2.8.1 Livestock Population

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India is rich in its livestock wealth. It accounts for nearly 15.8% of the world cattle
population, more than half of the world buffalo population. As per the 1992 Livestock
census of Ministry of Agriculture, highest cattle population was reported in Madhya
Pradesh (28.68 million nos.) followed by Uttar Pradesh (25.63 million nos.), Bihar (22.15
million nos.), Maharashtra (17.44 million nos.), and West Bengal (17.45 million nos.).
According to livestock census the highest population of buffaloes is reported in UP (20.08
million nos.) followed by A.P (9.15 million nos.), M.P (7.97 million nos.) and Rajasthan
(7.74 million nos.)

2.8.2 Production of Milk and Milk Products

The milk production was almost stagnant in 1947 to 1970 with an annual growth rate of
merely one percent which has since registered a vigorous growth of over 4.5% per annum
after the year 1970. The major milk producing states are UP, Punjab, Rajasthan, M.P,
Maharashtra and Gujarat. Numbers of milk products manufacturing plants have come up in
these states for processing of milk.
Globally, ice cream is the most popular frozen dessert. Since the industry is marginally
capital intensive, it is very competitive. In 2014, China took over the United States as the
largest ice cream market globally. In 2015, United States, New Zealand, Australia,
Denmark and Belgium dominated the global ice cream market in terms of consumption.
Based on product, the global ice cream market can be segmented into impulse ice cream,
take-home ice cream and artisanal ice cream.
Indian ice cream industry is one of the fastest growing segments of the dairy or food
processing industry. Currently Ice cream market in India is estimated to be over INR 4,000
crores and is growing at a rate of 15-20% year-on-year. It is projected that by 2019, the
market will reach around INR 6,198 crores. India has a low per capita ice cream
consumption of ice cream at 400 ml as compared with per capita consumption of ice cream
of 22,000 ml in the United States and 3,000 ml in China. With the improving cold chain
infrastructure in the country coupled with increasing disposable income and the changing
lifestyle, the sector has great potential for growth.
In India the ice cream industry is mostly regional and there is a multitude of brands
focusing on only one or two districts or in some case only one state. There are very few
national brands and the major reason behind slow growth of the smaller players is the high
perishability of ice cream products.
The growing opportunity in the sector has been investigated along with the market drivers.
The initiatives and performance of key players including Amul (Gujarat Cooperative Milk
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Marketing Federation), Vadilal Industries Ltd, Hindustan Unilever, Mother Dairy, Nestle,
General Mills and London Dairy along with the current market scenario has also been
studied. The report contains latest industry leader's opinion.

2.9 FUTURE OF ICE CREAM INDUSTRY IN INDIAN MARKET

According to a report released at TechSci Research, “India Ice Cream Market By Type, By
Organized vs. Unorganized Sector, By Category, Competition Forecast & Opportunities,
2011-2021”, the ice cream market in India is forecast to exhibit a CAGR of 17.03% during
2016-2021. Ice cream market in India grew at a moderate pace over the past few years, on
account of increasing number of international ice cream brands entering the Indian market,
improving cold storage facilities, coupled with changing consumer taste. Moreover, India
is the largest producer of milk, as the country accounts for over 1/5th of global milk
production, thereby offering ice cream market in the country with large volume of raw
material for manufacturing of ice creams. GDP per capita of India is increased from
USD1390 in 2010 to 1580 in 2015, which is positively impacting the ice cream market in
India. Furthermore, growing inclination towards eating ice cream outside, growing number
of flavours, coupled with rising purchasing power are further expected to drive India ice
cream market during the forecast period. West India dominated India ice cream market in
2015, and is further anticipated to continue dominate the market in the coming years,
owing to presence of leading players in the ice cream market in India such as Gujarat
Cooperative Milk Marketing Federation, National Dairy Development Board, Vadilal, etc.,
growing dairy industry, coupled with high population density in the region. India ice cream
market was dominated by impulse category of ice creams in 2015, and this category is
further expected to continue its dominance during the forecast period as well, owing to
growing demand for premium ice creams and changing consumer taste. Ice cream earlier
were considered as a luxury food product, however with changing time taste and
preference of consumers changed, which propelled growth in India ice cream market over
the past few years. Moreover, growing demand for natural and traditional flavoured ice
cream, coupled with increasing penetration of international brands, improvement in cold
chain infrastructure and rapid urbanization to drive India ice cream market during the
forecast period.”, said Mr. Karan Chechi, Research Director with TechSci Research, a
research based global management consulting firm.
“India Ice Cream Market by Type, By Organized vs. Unorganized Sector, By Category,
Competition Forecast & Opportunities, 2011-2021” has evaluated the future growth

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potential of India ice cream market and provides statistics and information on market
structure, size, share and future growth. The report is intended to provide cutting-edge
market intelligence and help decision makers to take sound investment evaluation. Besides,
the report also identifies and analyses the emerging trends along with essential drivers,
challenges and opportunities present in the ice cream market in India.

2.10 PRESENT STATUS

 Import of Machinery and Equipment:
Ice cream manufacturing is an exclusive type of business, as this product is highly
perishable; and accordingly, right from the stage of production to the ultimate delivery to
the consumer it has to be kept, stored and transported in frozen condition. The primary 34
requirement is a large investment for constructing a modem factory, installation of
machinery and equipment by imports from Europe, UK and USA, construction of cold
storerooms which would maintain the required refrigeration temperature for stored
product, and for undertaking all other arrangements for distribution and sales. A large staff,
fully experienced and trained in this line of refrigerated product for production, and
operation and maintenance of all the machinery and equipment is an important aspect.
 Industry Classification
Small scale industry Ice Cream manufacture has been pieced under 'Small Scale Industries'
by the Government. If India from the beginning of its commercialization and recently also
it is covered under the Small-Scale Industries. This classification of the industry has
restricted growth of the Ice Cream industry at a national scale and precisely because of this
reason the industry remained at a highly fragmented state. The supporting industries for
manufacturing the equipment for production and marketing of ice Cream could not develop
in the country and if anything was done it was localized and at a very rudimentary scale.
Therefore, all the modem equipment has to be imported from other developed countries of
Europe or USA where due to high cost of labour, the costs keep on rising. The levy of
customs duty in India is a large burden and then there are excise duties claimed on certain
equipment and composite machinery. Thus, the installation cost of a single unit is high in
Indian condition.
 Legal Standard
10% Milk fat mandatory that the legal standard prescribed for ice cream production in
India constitutes 10% milk fat. This is also the federal standard of United States of
America, United Kingdom and other European countries. According to their commercial
and economic interests, these countries restrict production of' Dairy Ice Cream and Milk
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Ice' to milk fat only and all other categories of ice cream are permitted to be produced with
vegetable fats. This legal facility permits ice cream being manufactured, both, for catering
to the requirements of affluent society and of the average citizen at reasonable prices. In
Indian situation, the restriction of ice Cream to milk fat has proved ice cream to be a high-
priced product and a luxurious table for all these years since the price of milk fat remained
always at a higher level.
 Low Per Capita Consumption:
The per capita consumption of ice Cream in India has remained way behind the level of the
developed countries and even behind the other Asian Countries. In North America, the per
capita consumption of ice Cream is estimated to be 30 litres per annum. The Indian per
capita consumption of ice Cream is about 125 m1 (one scoop) per year whereas the per
capita figure of neighbouring Asian countries like Pakistan is 3 times higher and frat of
Thailand is 10 times higher. The western region of India has a much higher consumption
than the all-India average. In the western region, primarily in Gujarat, a retailer, on an
average, sells three litres of ice cream per day. The Western and Northern regions put
together, account for about 70 percent of the total sales. According to industry estimates,
eight cities account for 60 percent of the national consumption.
 Largely Local Marketing: Few Regional/National Brands
Historically, in India since its commercial inception, the ice cream business remained
largely as a localized product confined to a city or township or a small region where the
manufacturer was located. Very few brands even operated across the states. The handful of
Brands which were relatively well known across the states and regions are:
Kwality- in Delhi, Bombay, Calcutta and eastern region.
Vadilal - Mainly in Gujarat, to some extent in Bombay.
Milk Food- in Delhi and Northern Region
Dollops - in South.
 Dominance of Non-Organized Sector in the Past
The business remained in the non-organized sector to a large extent until the nineteen
hundred eighties. The ice cream was regarded as a high-priced product of luxury. Around
nineties, this industry has undergone changes in its orientation. From occasional outdoor
celebrations to an all-family delight is a big leap in ice cream consumption in the country.
There has been a shift from impulsive buying to a coveted brick of ice cream in the 36-
household fridge. The corporate rate sector has also recognized ice cream industry as an
avenue for expansion, growth and profitable business. After liberalization of Indian

14
Economy in 1991, the multinational corporations have entered this field which itself is a
recognition of the potential of this industry.

Chapter-3
15
 COMPANY PROFILE

3.1 COMPANY PROFILE

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Name of the Company SUPREME FOOD INDUSTRIES
(MERIIBOY ICECREAMS)

Year of Incorporation 2003

Place Chelamattom

District Ernakulam

State Kerala

Country India

Type of Organization Partnership organization

Nature of Organization Partnership firm

Nature of Product Manufactured

No of employees 180

Production Capacity 6000 liters

Exporting Products to Karnataka, Tamil Nadu

Major Competitors Lazza, Amul, Joy

Company Website www.meriiboy.com

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3.2 PARTNERS OF THE COMPANY
 Mr. A.V Thomas
 Mr. K.M Joseph
 Mr. E.V Joseph
 Mrs. Daisy Devassy
 Mrs. Mini Varghese

3.4 HISTORY
Meriiboy is a division of Cousins Group, a business venture founded in 1990, by closely-
knit families. Over the years the group has developed diverse interests from plastic
modelling to ice cream and more. The first ice cream factory unit was set up in 2003 at
Kalady with a capacity of 600L a day. Today, the group holds four advanced units
manufacturing over 5 million litres every year.
In 2006, Cousins Group started the second ice cream factory in Kinfra Food Processing
Park, Calicut, catering to Northern Kerala. In 2010 the third factory commissioned at
Trivandrum as a part of market expansion the fourth factory inaugurated at Kannur and
reaches production capacity of 8 million litres per annum. In 2013 Meriiboy becomes a
major player in Kerala. Awarded ISO 22000: 2005 certifications by BUREAU VERITAS
for Kalady factory. Distribution network spreads across 1200 dealers and 400 distributers
in Kerala, Tamil Nadu and Karnataka. Establishes own outlets in Lulu, Oberon Malls,
Wonderla in Ernakulam and in R.P Mall at Calicut, Bakers Junction at Kottayam.
Meriiboy is one of the largest producers of fresh ice creams, based in South India. The
brand is known across Kerala and in the emerging markets of Tamil Nadu and Karnataka
for its original freshness and unmatched quality. The brand pays great attention to quality
at every level, from the sourcing of fresh raw materials to testing, manufacturing,
packaging and the finished product. Made with state-of-the-art production techniques and a
comprehensive hygiene policy, every Meriiboy product is nothing less than world class. To
ensure this, Tetra Pay Hoyer, Denmark has been involved as consultants and quality
advisors.

3.5 VISION AND MISSION

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Vision Statement
The Supreme Food Industry (Meriiboy Ice Cream Company) has a great vision of
becoming a leader of fast-moving consumer good and products. Its vision is to provide
total customer satisfaction through continuous improvement in production process and
services.
Mission Statement
The mission of the company is to deliver high quality food products that set themselves
apart from others in taste and value.

3.7 Quality Policy

Meriiboy ice cream provides quality policies mainly on the following areas:
 They periodically check the quality in production of ice creams
 Packaging process also include quality procedures such as inspection of packages
 They also provide quality protection on handling such as refrigerator vans for their
products while marketing.
Process
 The procedures are processes adopted – adhering to HACCP standards.
 Most modern machines imported from Italy & Europe
 Procedure like disinfection
 Fully automated plants to avoid human involvement in manufacturing
 Each batch tested for quality
 In house laboratory with trained microbiologists and chemists
 Dynamic printing of batch number to trace manufacturing details of a particular
product
Packaging
 Paper packaging done with white ITC food grade cartons
 Packaging workers are inspected before they engage in packaging
 Packaging materials supplied by reliable suppliers
Handling
 Refrigerated vans for transportation
 Well trained distributers and dealers
 Well maintained cold chain facilities-less breakdowns.

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 3.8 OBJECTIVES OF THE COMPANY
 Quality
They mainly focus on quality. They use pure milk collected from nearby PDDP (Peoples
Diary Development Project Central Society) centres for ice cream production.
 Profit Maximization
MERIIBOY Ice Cream Company is looking forward to maximising its profit through its
quality products.
 Cost Minimization
Minimizing the cost is the best way to maximize profit. They are using cost minimization
techniques and are implementing it to their production
 More employment
As a part of expansion of the company more employment opportunities are provided by
the company.
 Time delivery
The company is strict in timely delivery and feedback of the products provided to various
dealers.
 Proper utilisation of resources
The resources available to the company were utilized in the effective way in order to
avoid wastage and increasing cost.
 Provide service to society
Moreover, the company provides finance to charitable institutions on yearly basis.

3.9 VALUES OF THE COMPANY

 High quality products
Maintaining good quality with purity raw materials in production is one of the values
which MERIIBOY Company is focused on its production.
 Customer orientation
The company and management give high weightage on feedback of their customers.
 Good relation between management & workers
There exists a formal and informal relationship between management and workers in the
organization. Employee grievances are handled by the management with due care.

20
3.10 Company Logo

3.11 Quality Certification

 ISO 22000-2005 Certification
ISO 22000-2005 specifies requirements for a food safety management system where an
organisation in the food chain to demonstrate its ability to control food safety hazards in
order to ensure that food is safe at the time of human consumption. It is applicable to all
organizations, regardless of size, which are involved in any aspect of the food chain and
want to implement systems that consistently provide safe products. The means of meeting
any requirements of ISO 22000:2005 can be accomplished through the use of internal
and/or external resources.
 ISO 22000-2005 specifies requirement to enable an organization
To plan, implement, operate, maintain and update a food safety management system aimed
at providing products that, according to their intended use, are safe for the consumer, To
demonstrate compliance with applicable statutory and regulatory food safety requirements,
To evaluate and assess customer requirements and demonstrate conformity with those
mutually agreed customer requirements that relate to food safety, in order to enhance
customer satisfaction, To effectively communicate food safety issues to their suppliers,
customers and relevant interested parties in the food chain., To ensure that the organisation
conforms to its stated food safety policy, To demonstrate such conformity to relevant
interested parties, To seek certification or registration of its food safety management
system by an external organization or make a self-assessment or self-declaration of
conformity to ISO 22000-2005.

3.12 PRODUCTS OF THE COMPANY

3.12.1 Ice Creams

21
Ice Cream (derived from earlier iced cream or cream ice) is a frozen dessert usually made
from dairy products, such as milk and cream and often combined with fruits or other
ingredients and flavours. Most varieties contain sugar, although some are made with other
sweeteners. In some cases, artificial flavourings and colourings are used in addition to, or
instead of, the natural ingredients. The mixture of chosen ingredients is stirred slowly
while cooling, in order to incorporate air and to prevent large ice crystals from forming.
The result is smoothly textured semi-solid foam that is malleable and can be scooped.
Meriiboy ice creams are available at various flavours like
 Vanilla
 Strawberry
 Tender Coconut
 Alphonoso Mango
 Coffee
 Chickoo
 Butterscotch
 Orange
 Pappaya
 Kesar Badam Pista
 Strawberry Vanilla
 Fig & Honey
 Kiwi
 Lemon Delight
 Forestberry
 Blueberry
 Jackfruit
 Kulfi
 Lychee
 Guava
 Pista
 Spanish Delight
 Chocolate
 Black Currant

22
3.12.2 Sundae
The sundae is a sweet ice cream dessert. It typically consists of one or more scoops of ice
cream topped with sauce or syrup and in some cases other toppings including sprinkles,
whipped cream, maraschino cherries or other fruits. In Meriiboy Sundae available at
Chocolate, Strawberry and Pista flavours.
3.12.3 Cassata
The different varieties of Cassatas available in Meriiboy are Cassata King, Cassata Queen,
Cassata Prince and Cassata Kid.
3.12.4 Bars
An ice cream bar is frozen dessert on stick or a candy bar that has ice cream in it. The
coating is usually is usually a thin layer of chocolate used to prevent the melting and
dripping of ice cream.
Flavours available at Meriiboy are;
 Strawberry
 Chocolate
 Mango

3.12.5 Confetti
Flavours are;
 Chocolate
 Mango
 Strawberry
 Pista
3.12.6 Milk Lolly
Milk lolly is a special item produced by Meriiboy Ice Cream Company. It is often
described “traditional Indian Subcontinent ice cream”. As popularly understood, Kulfi has
similarities to ice cream in appearance and taste; however, it is denser and creamier. It
comes in various flavours like Mango and Cardamom. Meriiboy ice cream company
produces cardamom flavoured Kulfi.

23
3.13 RAW MATERIALS
The major raw materials used by Meriiboy are:
 Milk
 Butter
 SMP Milk Powder
 Sugar
 Fresh fruits

3.14 Promotion Strategy

Promotion is the method used to spread the word about the product or service to customers,
stakeholders and the broader public. In Meriiboy advertisements is widely used
promotional strategy. They use media like television, radio, newspaper, magazines etc.

3.15 Pricing Strategy

A business can use a variety of pricing strategies when selling a product or service. The
price can be set to maximize profitability for each unit sold or from the overall. It can be
used to defend an existing market from new entrants, to increase market share within a
market or to enter a new market. Businesses may benefit from lowering or raising prices,
depending on the needs and behaviours of customers and clients in the particular market.
Finding the right pricing strategy is an important element in running successful business.
The pricing strategy adopted by Meriiboy Ice Cream Company was cot plus pricing and
market-oriented pricing.

3.16 Cost plus pricing

Cost-plus pricing is a pricing strategy companies use to maximize their rates of return.
Firms may accomplish their objective of profit maximization by increasing their
production until marginal revenue equals marginal cost and then charging a price which is
determined by the demand curve. However, in practice, most firms use either value-based

24
pricing or cost-plus pricing which is also known as mark-up pricing (Cost+ mark-up =
selling price). There are several variations of cost-plus pricing, but the most common
method is to calculate the cost of the product then add a percentage of the cost as mark-up.
This approach sets prices covering the cost of production and provides enough profit
margins for the firm to reach its target rate of return. It also provides a way for companies
to calculate how much profit they will make.

4.1 Organizational Structure

Once the decision has been made to begin a retail venture, it is necessary to plan its
organizational structure in a way that maximizes efficiency and profitability. All of the
duties and responsibilities of those in the company must be identified, and lines of
authority must be carefully delineated so that all members of the organisation will
understand what their job responsibilities are. By doing so, everyone knows who will
report to whom, who the decision makers are, and which advisory personnel are on hand to
assist in the decision-making process. No matter how large or small the operation, whether
it is a major department store or single-unit boutique, each company must be structured in
such a way that best severs it needs and makes the business success. Organizational
structure is the hierarchical arrangement of lines of authority, communications, rights and
duties of an organisation. Organizational structure determines how the roles, power and
responsibilities are assigned, controlled and coordinated and how information flows
between the different levels of management.
A structure depends on the organization’s objectives and strategy. In a centralized
structure, the top layer of management has most of the decision-making power and has
tight control over departments and divisions may have different degrees of independence.
A company such as Proctor & Gamble that sells multiple products may organize their
structure so that groups are divided according to each product and depending on
geographical area as well. An organisational chart illustrates the organizational structure.

25
 TECHICAL
DEPARTMENT

DEPARTMENT
MANAGER

TECHNITITAN

Chapter-4

ORGANISATION STRUCTURE

26
 PARTNER/DIRECTOR

GENERAL MANAGER

TECHICAL
DEPARTMENT

PRODUCTION QUALITY FINANCE MARKETING PURCHASE HR TECHICAL

DEPARTMENT CONTROL DEPARTMENT DEPARTMENT
DEPARTMENT DEPARTMENT DEPARTMENT
DEPARTMENT
DEPARTMENT
MANAGER
DEPARTMENT DEPARTMENT PURCHASE DEPARTMENT DEPARTMENT
MANAGER DEPARTMENT DEPARTMENT MANAGER MANAGER
MANAGER
MANAGER MANAGER MANAGER
TECHNITITAN
SUPERVISORS
ASSISTANT ASSISTANT HR TECHNITITAN
ACCOUNTANTS MANAGER EXECUTIVE
QUALITY
SKILLED CONTROLLER
REGIONAL
&SEMI-SKILLED SENIOR
SALES
EMPLOYEES MANAGER
QUALITY
CONTROLLER
JUNIOR
AREA SALES
MANAGER

SALES
EXECUTIVES

Fig: Organizational Chart

27
 Chapter – 5

DEPARTMENTAL ANALYSIS

28
5.1 PRODUCTION DEPARTMENT
The production department is responsible for converting inputs into outputs through the
stages of production process. The production manager is responsible for making sure that
the raw materials are provided and made into finished goods effectively.

5.1.1 Departmental Functions

 Temperature monitoring
Production Manager monitors about the temperature of the machines which is necessary
for the production of the products. It is one of the basic factors which are vital for the
freezing process of ice creams.
 Purchase, dispatch and product management
They manage the dealers, plan and execute the requirements of raw materials and
control the unwanted wastage of products.
 Maintain customer relations
Production department maintains a good rapport with their various dealers. Any
grievances reported by the dealers, where taken in a positive way and instant feedback
and settlement is provided. It helps them to avoid such cases in future.

5.1.2 Duties and Responsibility

Production Manager
Production is the functional area responsible for turning inputs into finished outputs
through a series of production processes. The Production Manager is responsible for
making sure that raw materials are provided and made into finished goods effectively. He
or she must make sure that work is carried out smoothly and must supervise procedures for
29
making work more efficient and more enjoyable. Following are duties and responsibilities
of production manager in Meriiboy:
 Production planning
Production manager plans the routine activity which is necessary for the production
process and communicate the planned details to his supervisors.
 Executing plans
Production manager looks and execute each and every activity and evaluate whether
everything is happened as per the planned schedule.
 Making reports
It deals with the making of the reports, the details regarding how much to produce, how
much raw materials is needed etc.
 Workers control
Production manager is the person who controls every activity of the production. He is
responsible for the control of workers. Production manager controls the increase in
absenteeism, turnover etc. He also cares about the welfare of the employees.
 Production analysis
Production manager analysis each and every activity related to production. He evaluates
every performance of his workers by monitoring the works through computers.
 Quality assurance
He also monitors the working of quality department. He checks whether quality checking
is done accordingly and effectively. He guides the quality controllers as and when
needed.

5.1.3 Duties and Responsibility

Supervisor
Usually the supervisor understands the organization and the employee's profession better
than the employee. Consequently, the supervisor is in a unique position to give ongoing
advice to the employee about job and career. The employee can look to the supervisor as a
model for direction and development. An effective mentor-mentee relationship requires the
supervisor to accept the responsibility of mentorship. A good supervisor can be a priceless
addition to the career of an employee. Often, the supervisor is the first person to tell
employees about new policies and programs from management. It's not uncommon that
employees are confused or frustrated by these new actions and need further clarification
and support from supervisors. In the rapidly changing world of today's organizations, it can

30
be a major challenge to present new programs to employees without their being frustrated
or even cynical.
 Team leader
He is entrusted with the job of a team leader. In production department, there are two
supervisors. One on the production field and other one the packing and dispatch.
 Guide the worker
Production supervisor will guide his workers in the production. He has given 25 workers.
He divides his workers into 5 groups each with a leader. Group leader is the person who
communicates their complaints to the supervisor. Packing and dispatch supervisor has
also given same number of workers. He has group leaders three on packing and two on
dispatch.

 Communicator
Any grievances or complaints from the workers part are communicated by the
supervisors to the production manager. He will handle and make appropriate decisions.

5.1.4 PRODUCTION PROCESS

MIXING

PASTEURIZATION

HOMOGENIZATION

PHE COOLING

AGING

FLAVOURING AND
COLOURING

ICE CREAM MAKING

FILLING

31
 COLD ROOM
STORAGE

QUALITY CHECK

DISPATCH

Chart No: 5.1

 Mixing
Mixing the various ingredients needed for making ice creams like milk, SMP milk
powder, butter and sugar to have a mixture, it is undertaken by the machine called mixing
machine.
 Pasteurization
It is the next process which is carried down by the heating process to kill the various
harmful bacteria. It is done using the machine called double jacketed vessel. In this
vessel, the milk is contained in one vessel and under that there is another vessel which is
helpful for heating the milk to kill the various bacteria and germs contained in the milk.
 Filtration
Next is the filtration process, which is helpful for filtering the various hazardous things
like hair, gloves, pieces, nail etc. In this process, filtration of harmful things is
undertaken.
 Homogenization
It is the next process where the ice cream after filtration is carried forward by the pump
to the homogenization process. Here, the various ingredients are put under pressure to
have actual mix of the various items included in the ice cream like butter, milk, sugar,
SMP milk powder etc. Here, the items look like homogenized as it is mixed in a very
united form. It is done in 70 to 80c.
 PHE (Plate Heat Exchanger) Cooling
Cooling is the process in which the homogenised mixture is again cooled, and it is put
under 5C to make it harden.

32
 Ageing
It is the process by which a machine called ageing machine which helps the items to be
cooled and stored in a cold condition for their effective production.
 Flavouring and colouring
In this process the flavouring tank is the machine, which helps to make the flavoured ice
cream. For e.g. If strawberry flavour is needed, they pour strawberry mix and then
helpful for making of strawberry ice cream. In this process, they make only one flavour
at a time. After the making of one flavour they move to the next flavour. Now they have
flavours like strawberry, vanilla, pista, chocolate, butterscotch, mango, pineapple,
orange, jackfruit etc.
 Ice Cream making
It is the vital part of ice cream making, where the ice creams are created as per the
flavours needed; it is the next step to the flavouring tank. The flavours coming from the
flavouring tank is combined with the ice cream making machine and thus the ice cream is
produced.

 Filling
The ice cream coming out of machine is then filled into the containers manually, in the
set quantities. More than 30 flavours are ice cream made as per the market requirements.
Dry fruits, nuts etc. are added during filling process.
 Cold room storage
The packed products are stored in cold storage maintained at – 18 C or below
 Quality check
Samples are drawn from each lot to ensure that it meet the requirements.
 Dispatch
The products are despatched to various outlets depending upon the requirements.

5.2 PURCHASE DEPARTMENT

The Supreme Food Industries Ltd. Deals with number of products. Therefore, it has to
purchase many goods. It includes Milk Butter, SMP Milk Powder, Sugar, Fresh fruits etc.
Supreme Food Industries Ltd usually has two kinds of purchase. They are:
 Local purchase.
 Direct purchase.

33
 Purchase department carries on its function. Supreme Food Industries Ltd follows
certain procedure for purchase:
 Intend order:
On the requirements of any goods, stores department intends an intend order to purchase
department stating the quality description and number of goods required within stipulated
time limits. If the goods required are urgency, then they purchase directly from the local
market. Otherwise decisions are taken regarding the kinds of purchase by the purchase
manager approved by the general manager.
 Quotation:
Supreme Food Industries Ltd has few registered vendors for the goods of less urgency. The
company informs their vendors and invites quotation with their prices. The general
manager selects the best alternative considering the prices, quality recognition etc.
 Send order:
The purchase executive send order to the vendor with specific condition regarding the
products in terms of payment, type of packaging, transport etc.
 Goods received note:
Goods send by the vendor directly taken to the stores department were the manager verify
and sent goods received note to the accounting department and one copy is send to the
purchase department. The executive signs it and files it.

5.2.1 Department Structure

PURCHASE
DEPARTMENT

PURCHASE
MANAGER

ASSISTANT

Chart No 5.2
5.3 QUALITY CONTROL DEPARTMENT

34
Quality control is a set of procedures intended to ensure that the manufactured product or
performed service adheres to a defined set of quality or meets the requirements of the
customer.
5.3.1 Function of Department
In Quality Control department there are 2 qualified quality controllers to test the quality of
raw materials as well as the quality of ice creams. Quality Control staff members at NOW
have many responsibilities, but everything they do contributes to the quality of the end
product, which is the main objective of quality control. This task, however, is not a simple
one, because it entails an incredible number of inspections, checks and reviews before a
product can be offered for sale.
Every person involved in making a product is responsible for making it a quality product.
Quality departments, such as Quality Control (QC) or Quality Assurance (QA) cannot
inspect quality into the product. The Quality Departments exist as an audit function within
the manufacturing and packaging areas.
 Approve or reject all procedures, specifications, methods, and results
 Approve or reject all raw materials, packaging materials, labelling and finished
products
 Review all production records for accuracy and completeness before approving for
distribution
 Establish procedures for revising procedures, formulas, and more
 Approve changes to procedures, formulas, and more
 Ensure that the latest revision is being used at all times
 Perform all the required tests to ensure identity, purity, potency and composition,
and to ensure that products are not contaminated or adulterated
Quality staff is also involved in:
 Investigation of consumer complaints
 Evaluation of new vendors/materials
 Internal audits to verify compliance to regulations
 Maintaining relationships with vendors and regulatory agencies

5.3.2 Department Structure

QUALITY
CONTROL
35
DEPARTMENT
 DEPARTMENT
MANAGER

QUALITY
CONTROLLER
SENIOR

QUALITY
CONTROLLER
JUNIOR

Chart No: 5.3

5.3.3 Duties and Responsibilities of Quality Controller

 Testing the product
The testing process is carried down on various steps i.e. raw material checking, checking
the mixing process, aging process and at the finished stage of ice cream. They had done
both microbiological testing and chemical testing.
 Maintain the record of test results
They maintain the records daily which is related to their quality checking and they also
maintain the ISO 22000 records.
 Maintain the laboratory
They maintain the laboratory and it is restricted for others to enter into the laboratory.
Continuous research is carried out there in the laboratory to identify whether bacterial
effects are there or not.

5.4 HUMAN RESOURCE DEPARTMENT

Human Resource is the people that work for an organisation and Human Resource
Management is concerned with how these people are managed. However, the term Human
Resource Management (HRM) has come to mean more than this because people are
different from other resources that work for an organisation. People have thoughts and
feelings, aspirations and needs.

5.4.1 Department Structure

36
 HR
DEPARTMENT

DEPARTMENT
MANAGER

HR
EXECUTIVE

Chart No: 5.4

5.4.2 Departmental Functions

 Manpower planning
It involves the planning for the future and finding out how many employees will be
needed in the future by the business and what types of skills should they possess. It
depends on the factors like no of employees leaving the job, technological changes,
productivity level of the workers etc.
 Job analysis and Job description
HR department is also involved in designing the job description for the prospective
vacancies.
 Determining wages and salaries
HR department is also involved in conducting market surveys and determining the wages
and salaries for different position in the organization.
 Recruitment and selection
One of the most important jobs of HR department is to recruit the best people for the
organisation. This is of crucial importance as the success of any organisation depends on
the quality of its workforce.
 Performance appraisal
Once the employees are recruited, the HR department has to review their performance on
a regular basis through proper performance appraisals. It is the process of obtaining,
analysing, and recording information about the relative worth of an employee. On the
basis of the performance appraisal, HR department will set up an action for each
employee.

37
 Training and development
In order to improve the efficiency level of the employees, they have to undergo regular
Training and Development. Training include on the job and off the job.
 Employee welfare and motivation
HR department tries to maintain welfare activities and more motivational benefits to its
employees.
 Addressing employees’ grievances
They are the link between the workers and the management. Employees grievances
related to work environment are usually entertained and resolved by the HR department.
 Labour management relations
In case of any labour management conflicts, the HR department will play a vital role in
bringing both management parties to the negotiation table and resolve the issue.

5.4.3 Duties and Responsibilities of Human Resource Manager

 Recruitment
The objective of recruitment policy is to source the best talent from the resources to
achieve business objectives and goals of the company. Mainly external recruitments are
done.
Following are the process of recruitment
 Through department heads requirements is identified.
 When requirement is identified advertisements are given in various job portals,
newspapers and in that role summary, location, required experiences are mentioned
clearly. Referred candidates from employee are considered as employee referral.
 The candidates for interviews are selected by the HR department. First, applications
are accepted from the candidates and from that suitable candidates are selected. After
selecting the candidates for interview, they are informed the location and time of
interview by the HR department.
 Personal interview will be conducted with the selected candidate. Partners will be the
interviewing panel.
 Decision of the interviewing panel will be final.
 Candidates who are finally selected in the interview shall be issued Offer Letter with
details such as designation, job location, working hours, salary and nature of work,
leave, probation, confirmation, termination etc. or in the prescribed format.
 HR department shall have the copy of offer letter duly signed by the candidate in
acceptance of offer.
38
  The newly joined employees are introduced to the company and to existing staff
members.
 There will be a probation period of 6 months. After completing the probation period,
the candidate will be considered as a permanent employee. It will be informed in
writing.

5.4.4 Sources of Recruitment

1. Advertisement
2. Personal Contact
3. Manpower consultants

5.4.5 Joining Formalities

The employees have to fill and bring the following documents at the time of joining:
a) Personal Information Sheet
b) Joining Report
c) Two passport size photos
d) Experience Certificate if any.
e) Signed offer letter
f) One-month notice period
g) Security

5.4.6 Recording of attendance

The main objective of recording of attendance is to bring discipline at work.
 Employees are following attendance marking system established by the organization
 Whenever an employee enters or leaves the organization recording of attendance is
must.
 Any employee having an urgent reason of leaving the work should inform the Head
of the Department and obtain the permission.
 Late attendance or leaving office early an hour may be allowed if permission of Head
of the Department is obtained.

5.4.7 Allowances
Travelling Allowances and Dearness Allowances are provided to marketing officers.PF,
ESI, are also provided to employees who are working under the organization not less than
6 months.
39
Provident Fund- This is a Social Security scheme with an objective to help employees to
get a lump sum of money normally at the time of retirement. As per the scheme,
contributions are made by employer and employee @ 12% of the basic wage.

5.4.8 Leave
Leave policy is to provide guidelines for permissible leave from the work during the year.
It is for all employees.
 There are 24 casual leave for a year i.e.; 2 leave per month. LOP will be calculated
when more than 2 casual leaves per month were taken. Certain amount will be
deducted from the salary based on attendance.
 The encashment of leave may be made only once in a year. Encashment amount shall
be paid through salary of respective month.
 The list of paid holidays will be published at the beginning of every year.
 Employees can take half-day or more subject to the approval of respective authority.
 All sanctioned leaves are submitted to plant manager in time
 Late attendance or leaving office early an hour may be allowed if prior permission of
HOD is obtained.

5.4.9 Employee State Insurance

This policy is to better health and quality of life to individuals working with the company
and their immediate family members. ESI scheme is applicable to all employees who are
drawing below 15000 salaries per month.

5.4.10 Performance appraisal system

Performance appraisal assesses an individual’s performance against previously agreed
work objectives. The performance appraisal system is to employees and to assess training
and development needs of the employees keeping in view the organizational development
needs. Based on the performance of the employees they are rewarded. The following
procedures are done in appraisal system:
 Recommendation from Head of the Department
 Attendance marks

40
  Evaluation of supervisors

5.3.11 Reward policy

A reward policy is designed to encourage the employees to make good performance either
individually or in team.
I. It is to improve employee productivity
II. It is to recognize the positive behaviour that support individuals or team to achieve
the goals and objectives of the organization.

5.3.12 Telephonic policy

To communicate with their employees at any time company provides the facility of
telephone. By providing this facility company is giving good communication atmosphere.
Marketing Executives have been provided mobile phones depending upon their assigned
work. Usage of personal cell phones not allowed during the working hours.

5.3.13 Transfer
The main objective of transfer is to relocate the services of employees from one location to
other or from one department to other. No transfer shall take place without mutual
agreement between the concerned Head of the Department with the concerned employee.
In case of transfer from one establishment to another new PF number shall be allotted to
the employee from establishment. Transfer of an employee will be based on Leave Status,
Joining Date etc.
5.3.14 Promotion
a. The main objective of promotion is to motivate employees for their better
performance.
b. Promotion would be based on the existence of vacancy in the next level.
c. Promotion will be on the basis of various criterions declared by the management
every year at the time of annual appraisal.
d. The promotion shall be affected along with the annual increments.
e. The employees shall be considered for promotion only if their performance has been
assessed better than their previous quarterly performance and should have at least one
year of service.
f. The promotions shall be affected as and when vacancies are opened due to
retirement/registration or when new factories constructed.

41
 5.3.15 Termination
The management has the authority to terminate the service of those whose performance is
unsatisfactory or any other suitable reason. Termination due to any reason employee’s final
account will be settled only after he/she has cleared his/her dues with the company.
Following are the formalities:
a. Full and final settlement of account
b. Payment of gratuity within 30 days of leaving

5.3.16 Working Hours

i. The main objective of this policy is to maintain smooth and continues functioning of
the organisation. It is applicable for all employees.
ii. Working days are 6 days i.e.; Monday to Saturday
iii. Sunday shall be weekly off day.
iv. If there is an emergency or demand an employee may be expected to work on
Sundays or public holidays.
v. Compensation will be given for extra duties on Sunday or public holidays.

5.3.17 Compensation Planning

i. Compensation is decided
ii. by the management where various demands are negotiated.
iii. Yearly increments are given
iv. Individual performance bonus is given annually.

5.3.18 Gratuity
i. Gratuity is a part of salary that is received by an employee from his or her employer
in gratitude for the services offered by the employee in the company. It is a benefit
plan and is one of the many retirement benefits offered by the employer to the
employee. Gratuity is given according to the Gratuity Act, 1972.
ii. In this firm gratuity is paid when an employee completes 5 or more years of full-time
service with the company.
iii. Gratuity is paid within 30 days of last working day of the separating employee.
iv. The terminated employee will be given one-month notice or a compensation of one-
month salary.

5.3.19 Wages

42
 Wages are given on the basis of Minimum Wages Act 1948 which will be disbursed on the
date declared in advance.

5.3.20 Loans and Advances

Conditions:
i. Application should be submitted by the employee indicating the amount required
repayment plan etc. in a format.
ii. Loan amount agreed will be deducted from the salary every month
iii. If the loan is sanctioned on or before 15th of the month, deduction will be started from
the same month. If the loan is sanctioned after 15 th of the month, the deduction will
be started from the next month.
iv. The applicant should serve in the company till the loan is completed.
v. In case of breach, during the prudency of the loan, the balance loan will be deducted
from his full and final settlement.
vi. The management has got the right to change or amend or modify the above rules
vii. The management has got the right to reject the application.
viii. Advance will be given on the basis of attendance. It will be given to those employees
who had worked minimum 15 days in a month.

5.3.21 Holidays
National & Festival Holidays are considered as holidays.
5.5 MARKETING DEPARTMENT
The marketing department must act as a guide and lead the company’s other departments
in developing, producing, fulfilling and servicing products for their customers.
Communication is vital. The marketing department typically has a better understanding of
the market and customer needs but should not act independently of product development or
customer service. Marketing should be involved and there should be a meeting of the
minds, whenever discussions are held regarding new product development or any
customer-related function of the company.

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5.5.1 Department Structure

MARKETING DEPARTMENT

DEPARTMENT MANAGER

ASSISTANT MARKETING
MANAGER

REGIONAL SALES
MANAGER

AREA SALES MANAGER

SALES EXCUTIVES

Chart No: 5.5

5.5.2 Departmental Functions

 Demand generation
The pricing of the products is reasonable. Discount on prices is based on the orders they
got and also, they gave discount to dealers because they bought bulk products.
 Market research
The company focuses their marketing research to make their products qualitative. As the
part of their research they introduce real ice cream instead of frozen dessert.

5.5.3 Duties and Responsibilities

Marketing Manager
A marketing manager performs many duties aimed at developing and implementing the
long- and short-term marketing strategies of his employer. The broad scope of this task
requires him to interact heavily with various departments of his firm, including research
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and development, manufacturing, supply chain, sales and, in some industries, legal and
compliance. Depending on the size of his organization, a marketing manager may also
oversee a team of junior marketing professionals. Following are the duties and
responsibilities of Marketing Manager of Meriiboy ice creams.

 Manage customer relations

One of the most important functions of a marketing department is to keep current
customers happy. Because it is easier and less expensive for a company to keep an
existing customer than it is to find new customers, marketing professionals must focus on
relationship management. This may include giving customers regular interaction with
your company, letting them know about new products and providing value after the first
sale.
 Support Strategic Plan
An effective marketing department develops their promotional efforts to support the
goals that the company lays out in its strategic plan. Often, those goals include increased
sales, targeting new audience groups or launching new products or services. The
company lays out a marketing plan that it develops after it identifies strategic business.
 Develop Promotions
Developing and implementing an effective sales promotion schedule and advertising plan
involves several carefully planned steps. Issues to be taken into consideration include
market research, creating a campaign theme, developing collateral materials and
advertisements, selecting media outlets to use for message distribution and finally,
advertising plan implementation a marketing department’s main responsibility is to
promote the products, services, and mission and brand identity of a company. They must
identify marketing goals and develop promotional activities that will help the business
move in that direction. Marketing efforts are a way to increase, create brand recognition
and build a strong customer base. Promotional materials often include a website, sales
collateral, email campaigns, printed marketing pieces etc.

 Boost sales
Often, a marketing department is responsible for supporting the efforts of the sales
department. They meet with the sales and develop materials that will assist in selling the
company’s products and services. By consulting with salespeople, the marketing
department is able to develop more effective materials and promotions. In response to
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 feedback, they may update brochures and spec sheets, target different audience groups, or
design new campaigns that support the sales staff duties.
 Develop pricing strategies
Pricing strategy development is another marketing manager responsibility. During this
process, start by studying prices competitors charge for like products or services. Then
conduct surveys to determine how sensitive consumers are to price changes. Pricing
should adapt to factors like geographical location, market segment and economic
conditions. Companies should remain flexible towards pricing policy and change as per
market dynamics. Companies should also not react blindly to price change by
competition rather should focus on analysing the underlying motives

5.5.4 Area Sales Manager

 Manages an assigned geographic sales area or product line to maximize sales
revenues and meet corporate objectives.
 Establishes and manages effective programmes to compensate, coach, appraise and
train sales personnel.
 Performs sales activities on major accounts and negotiates sales price and discounts
in consultation.
 Manages personnel and develops sales and sales support staff.
 Reviews progress of sales role throughout the company.
 Accurately forecast annual, quarterly and monthly revenue streams.
 Develops specific plans to ensure revenue growth in all company’s products.
 Provides quarterly results assessments of sales staff’s productivity.
 Coordinates proper company resources to ensure efficient and stable sales results.
 Formulates all sales polices, practices and procedures.
 Collaborates to establish and control budgets for sales promotion and trade show
expenses.
 Reviews expenses and recommends economies
 Holds regular meeting with the sales staff.

5.5.5 Sales Executives

 Sales Development
Sales executives are responsible for developing business and sales opportunities for the
company. The sales executives may contact new and existing clients to see what services
or goods the company can provide. This may include making appointments to meet one-
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 on-one with the clients or making presentations. Based on an analysis of client responses,
sales executives must develop and maintain processes and procedures that will increase
sales.

 General Sales Duties

Like all other sales employees, sales executives must sell a service or product in addition
to taking care of management tasks. They may greet and assist customers, take phone
calls and report merchandise or service problems to higher levels of management.
.
5.6 FINANCE DEPARTMENT
The finance department of a business takes responsibility for organising the financial and
accounting affairs including the preparation and presentation of appropriate accounts, and
the provision of financial information for managers.
5.6.1 Department Structure

FINANCE DEPARTMENT

ASSISTANT MANAGER

JUNIOR ACCOUNTANT

DESPATCH

Chart No 5.6

5.6.2 Function Department

 Prepare and Create Financial Accounts
Finance department prepare and create financial accounts such as Trading and Profit &
Loss Account and Balance Sheet.
 Keep and Maintain Record
Sales figures and records of expenditure would be held by the Finance Department and
used by other department also.
 Prepare and Plan internal Financial information

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 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 to which the firm owes
money.
 Pay employees wages and salaries
Running the pay roll system is another important task for finance department to
undertake.
5.6.3 Duties and Responsibilities
 Accounts Manager
An account manager is a person who works for a company and is responsible for the
management of sales and relationships with customers. An account manager maintains the
company's existing relationships with a client or group of clients, so that they will continue
using the company for business. The account manager does not manage the daily running
of the account itself. They manage the relationship with the client of the account(s) they
are assigned to. Generally, a client will remain with one account manager throughout the
duration of hiring the company. Account managers serve as the interface between
the customer service and the sales team in a company. They are assigned a company's
existing client accounts.
 Purchase
The finance department verifies vouchers relating to purchase. It includes purchase order,
quotations. Purchase requisitions, purchase invoice, TIN number verification etc.
 Sales
They also verify the various vouchers relating to sales according to Form 8 and Form 8
B. Verification is based on the orders received, they do the duties like checking of the
bills, verification of credit limit of debtors, acknowledgement of the bills, communication
of the ledger monthly through mails.
 Inventory Stock
It includes the inventory management of the raw materials and finished goods.
 Cash
 Only the pre-printed vouchers are checked. Checking is based on date, name,
purpose, sign, amount etc.
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  Supporting documents are also verified.
 Each voucher requires dual signature
 All the payments above Rs.5000 must be attached with a stamp and also above
Rs.20000 will not be accepted through cash.
 On every closing day, the closing balance of cash is written on denominators.
 On cash receipts, they maintain job rotation in order to impose authority and
responsibility to everyone.

 Banks
 All the cheques are locked and kept under safe custody,

 They maintain volt register. There are two persons accountable for this volt register
and the locker. Responsibility changes day to day. According to the date, the person
who is accountable and responsible will enter the details in the volt register.
 They maintain cheque register too. It is on the basis of name, date etc.
 Maintains bank reconciliation statement on daily basis.
 They monitor the bank chargers and interest rates
.
 Accountants
An accountant is a practitioner of accounting or accountancy, which is the measurement,
disclosure or provision of assurance about financial information that helps managers, investors,
tax authorities and others make decisions about allocating resource

 All accounting activities in purchase and sales

Accounting related to purchase and sales is carried out by the accountant. They classify,
calculate, summarize and report to various interested groups.
 Inventory/Stock Management
Accounts relating to raw materials, packing materials and finished goods are maintained
by the accountants.
 Accounting of cash and bank
Cash and cash related accounts are verified and calculated by the accountants. Also bank
statements are prepared by the accountants.
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  Accounting of Debtors and Creditors
Receipts and Payment relating to debtors and creditors are calculated by accountants.
Accounting of debtors include calculation of sundry debtors, provision for doubtful
debts, bad debts etc. accounting of creditors include credit payment period, creditors
amount etc.
 Documentation/Filing
Maintenance of various documents and keep it safe in files. They maintain various files
sales, purchase, stock, debtors, journal, salary and bonus etc.
 Inter branch transaction
It is the transaction between the branches. They mainly prepare reconciliation statement.

5.7 TECHNICAL DEPARTMENT

5.7.1 Departmental Structure

TECHINCAL
DEPARTMENT

DEPARTMENT MANAGER

TECHNICIANS

Chart No: 5.7

5.7.2 Departmental Functions

 Technical department is responsible for all productive and preventive maintenance of
plant and machinery.
 The department gives equal importance to preventive maintenance as well as ongoing
trouble shooting.
 Technical department ensures the proper working of machines.

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 The important responsibilities include safety and pollution control.

Chapter – 6

SWOT Analysis

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 SWOT ANALYSIS
A SWOT ANALYSIS is a structured planning method used to evaluate the strengths,
weaknesses, opportunities, and threats involved in a project or in a business venture. A
SWOT ANALYSIS can be carried out for a product, place, industry or person. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favourable and unfavourable to achieve that objective. Setting the
objective should be done the SWOT analysis has been performed. This would allow
achievable goals or objectives to be set for the organization.
 Strength: Characteristics of the business or project that give it an advantage over others
 Weaknesses: Characteristics that place the business or project at a disadvantage relative to
others
 Opportunities: Elements that the project could exploit to its advantage
 Threats: Elements in the environment that could cause trouble for the business or project.

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 Strength Weakness
Very committed and efficient Seasonal sales of the product
employees High operating expense
Quality of the product Less market share.
comparable with the Maintenance of proper storage
international standards. facilities
Efficient management
Good infrastructure facilities

SWOT
ANALYSIS

Opportunities Threats
Large young population and very Raising price of raw materials
hot summer High cost of production
Growing Ice cream market Unavailable of quality of raw
High economic growth and market materials
liberalization
Quality advantage

6.1 STRENGTHS
 ISO 22000-2005 Certified Organization.
 Very committed and efficient employees.
 Quality of the product comparable with the international standards.
 Efficient management.
 Good infrastructure facilities and usage of advanced.
 There is no trade union in the organisation
 No addition of animal fat in the product.
 Well-developed cold storerooms.
 Advertisements through both print and online medium.

6.2 WEAKNESSES
 Seasonal sales of the product.

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  High operating expense.
 Lack of availability of raw materials.
 Maintenance of proper storage facilities.

6.3 OPPORTUNITIES
 Large young population and very hot summer.
 Growing Ice cream market.
 High economic growth and market liberalization.
 Quality advantage.
 Improve promotional efforts through audio visual media.

6.4 THREATS
 Raising price of raw materials.
 Stiff Competition.
 Unavailable of quality of raw materials.

CHAPTER -7
54
FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS
 The Company is maintaining consistency in quality.
 The company owns a store for selling their products.
 The company have both print (newspaper) and online mediums for advertising to
increase the demand of the products.
 The company uses both the internal and external source of recruitment for employees.
 There company maintains a hygiene environment and safety measures in all
departments.
 There is no canteen facility inside the company.
 Company gives importance to social and employee welfare activities.

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 Company manufactures ice creams with fruit pulps and natural colours as colouring
agents.

SUGGESTIONS
 Focus more on online advertisements and promotions so that company can boost the
sales.
 Expanding the reach by introducing more outlets within the state.
 Proper training has to be provided to employees for increasing their productivity and
efficiency.
 Implement the production control mechanisms.
 Instead of manual attendance keeping it can be digitalized to avoid manipulation.
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 Ensure more efforts of the storage and the warehousing facilities.
 Ensure product diversification by providing different flavours.

CONCLUSION
The organisation study carried out at Supreme Food Industries was successful in achieving
the specific objectives. It helped to familiarize with the organization structure and its
functioning. It also helped to familiarize with different departments in the organisation and
their functions and activities. The study helped to understand how the key business
processes are carried out in an organization and how information is used in organisation for

57
decision making at various levels. The company is always focusing on the quality of
products. The brand is constantly exploring new and exciting flavours for its consumers
through continuous R&D. With fully equipped laboratory, the brand has innovated not just
with fresh flavours but also with new products like ice creams in real fruits shells, fresh
fruit ice cream and milk lollies. The biggest innovation of Meriiboy Ice Cream is there
replacement of artificial colours and flavours with natural ingredients ensuring that the
product is 100% natural.

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 BIBLIOGRAPHY

BIBLOGRAPHY

 REFERED BOOKS
 Philip Kotler, “Marketing Management”, Prentice Hall of India Pvt Ltd. New Delhi 2007

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 Kothari C.R “Research Methodology Methods and Techniques”. New age International
publishers, 2004
 Aswathappa K. “Human Resource & Personal Management”. New Delhi: Tata McGraw-
Hill publishing co. ltd, 1999
 Pandey I.M “Financial Management”. New Delhi: Vikas Publishing House Pvt. Ltd, 2000
 Pannerselvam, “Productions & Operations Management”, PHI Publications,5 th Edition,
New Delhi.

 MAGAZINES / JOURNALS
 Annual report 2016-17.
 Economic times.

 WEBSITES
www.meriiboy.com

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