Kirti Dal Mill
Kirti Dal Mill
PROJECT REPORT
2010
PREFACE
I want to express my experience and practical knowledge that I gained during the summer in
plant training at KIRTI DALL MILL LTD, BIJAPUR.
It was my first Experience when I went to the market not to buy anything but to do the survey
and to promote the KIRTI DALL MIIL LTD product. The basic need of survey is to ensure
about the sales, competitors and satisfaction of retailer and consumers in the market. On first day
I was nervous, but because of the un awareness of KIRTI product in the market the people
attended us positively as well as negatively. Many people came themselves to us for knowing the
details about the product.
For accomplishment of the project report I daily think about the conditions and views and then I
used to compose the whole thing on computer. In making the project report theoretical
knowledge was needed more than the practical which was given to us by my professors in our
institutes. In the market the experience relating to the practical knowledge was very good.
ACKNOWLEDGEMENT
I have tried my best to present this information as clearly as possible using basic terms that I
hope will comprehended by the widest spectrum of researchers, analysts and students for further
studies.
First of all I acknowledge our sincere gratitude and indebtedness to industrial guide MR.AMIT
KATARIA ( GENERAL MANAGER of KIRTI DALL MILL LTD, Bijapur) giving us
invaluable opportunity to make this project report on and there after providing me constant
guidance. I would be thankful to the authorities of our institution faculty Prof.JAMEEL
PUNEKAR (Faculty, BEA Bijapur) constant help, guidance and encouragement during this
project, which has been a great learning experience. I also want acknowledge how much I have
learn from working with my colleagues who provide me with the time support and inspiration
needed to prepare this project.
I would also like to thank all the members of KIRTI DALL MILL LTD Bijapur,
who spent their valuable time to cooperate with me. And I acknowledgement may not redeem the
debt I owe to my parents and friends for their direct/indirect support during the entire course of
the project.
INDEX
NO PERTICULARS P NO
1 CHAPTER I 8-12
Executive summary 8
Importance of edible oil in the country’s economy 9
Edible oil market in India 10
Consumption patterns of edible oil in India 12
CHAPTER II 14-26
2
Introduction 14
Company profile 16
History of KIRTI dall mill ltd group 18
Plant location 19
Infrastructure 20
Promoters and their background 23
Management and organization 24
Quality objectives 25
Organization structure 26
3 CHAPTER III 28-44
Major departments in KIRTI Bijapur 28
A-Production department 29
Production process 30
Objectives 33
Suggestion 33
B- Quality control department 34
Test conducted at QCD 35
Functions of QCD 35
Objectives 36
C- Human resource department 37
Functions of HRD 38
Objectives 39
D- Finance department 40
Functions of finance department 41
E- purchase department 42
Objectives 43
F- Marketing department 44
Objectives 44
4 CHAPTER IV 46-56
Pricing strategy of KIRTI 46
Distribution of product 47
Feedback from retailer 48
Feedback from consumers’ 49
Marketing segmentation 50
Marketing mix 52
SWOT analysis 56
5 CHAPTER V 58-78
Objectives of the study 58
Scope and limitation of study 59
Research methodology 60
CHAPTER I
Executive summary
Importance of edible oil in the country’s economy
Edible oil market in India
Consumption patterns of edible oil in India
Executive Summary
Today’s world need is a corporate world and it requires a lot of management activities to achieve
success, for this purpose in this competing corporate world of multinationals and industries ,
industrial revolution has brought with it group production and group consumption activities and
also it has brought in a lot of corporations competing for preferences and success in the business
world, it may be a manufacturing industry or any other type of industry experience and
specialization, have become a must to compete with others become very much essential for all
the companies. Lecturers teach the students; this learning will make an individual knowledgeable
in theory of the various functions of a company. But a person comes out from class room and
visits various industries, in this situation he can learn more from them. In such a situation real
experience in the practical functioning and operations of a company can be of very much use to
the students of management studies.
For the purpose of acquiring practical knowledge of the working and functioning of a company.
BIJAPUE EDUCATIONAL ACADEMY BIJAPUR. Has incorporated an in plant training into
its business management schedule. This in plant training tells us how the different departments in
the organization work as a single unit.
Oilseeds and edible oils are two of the most sensitive essential commodities.
India is one of the largest producers of oilseeds in the world and this sector
occupies an important position in the agricultural economy and accounting for the
estimated production of 25.14 million tones of nine cultivated oilseeds during the year 2003-
2004. India contributes about 8-9% of the world oilseeds production. Export of oil meals,
oilseeds and minor oils has increased from 2.28, million tones in the financial years 2003-2004.
In terms of value, realization has gone up from Rs.2653/- crores to Rs.5447/- crores. India
accounted for about 6.4% of world oil meal export.
Types of Oils commonly used in India. India is fortunate in having a wide range of oilseeds
crops grown in its Different agro climate zones. Groundnuts, mustard/rapeseed, sesame,
safflower, linseed, Niger seed/ castor are the major traditionally oilseeds. Soya been and
sunflower have also assumed importance in recent years. Coconut is most important amongst the
plantation crops. Efforts are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil
Nadu in addition to Kerala and Andaman and Nicobar Islands. Among the non-conventional oils,
rice bran oil and cottonseed oil are the most important. In additional, oilseeds of tree and forest
origin, which grow mostly in tribal inhabited areas, are also a significant source of oils. .
India is one of the largest producers of oilseeds in the world and this sector occupies an
important position in the agricultural economy. Oilseeds and edible oils are two of the most
sensitive essential commodities. India grows oilseeds on an area of over 26 million hectares,
with productivity of around 1000 kg a hectare. But self –reliance in edible oils is not in sight and
the country imports almost half of its edible oil requirements.
India has a wide range of oilseeds crops grown in its different agro climatic zones. Groundnut,
mustard/rapeseed, sesame, safflower, linseed, nigerseed/castor are the major traditionally
cultivated oilseeds. Soya bean and sunflower have also assumed importance in recent years.
Coconut is most important amongst the plantation crops. Among the non-conventional oils,
ricebran oil and cottonseed oil are the most important. The Indian edible oil industry is composed
of some 15,000 oil mills, 600 solvent extraction units, 250 vanaspati units and about 400 refining
units.
The National council of Applied Economic Research has projected the demand for edible oils
under three scenarios on the basis of per capita income growing annually by 4%, 5% and
6%.Under the low growth scenario, the demand was to rise to 22.8 million tones ,under medium
growth scenario to 25.9 million tones and under high growth scenario to 29.4 million tons in the
near future. The edible oil industry is largely dominated by the bulk segment. Unbranded
segment accounts for anywhere between 80 and 90% of the total consumption. Imports are
taking place in two forms-refined and crude oil. A large part of the crude oil gets sold as
unbranded oil. The share of raw oil, refined oil and vanaspati in the total edible oil market is
estimated at 35%, 55% and 10% respectively.
With growing quality consciousness and plummeting price differences between packaged and
non-packaged edible oils, the packaged edible oil sector will capture 50% of the market share in
coming years. The packaged branded edible oil industry is growing at 12% annually. Major
Players like Marico Industries is the market leader with its two main brands, Sweekar and
Saffola, having 15% market share, followed by ITC Agrotech’s Sundrop at 13%. Godrej Foods
has a market share of 11% and HLL’s Flora has 3%. Cargil sells edible oil through Nature Fresh
and Gemini brands, Ruchi groups with Ruchi Gold and Mahakosh oil,Adani Wilmar Limited,
owner of Fortune brand, National Diary Development Board's Dhara brand and other small
players own rest of the packaged edible oil market.
India is vast country and inhabitants of several of its regions have developed specific preference
for certain oils largely depending upon the oils available in the region. For example, people in
the South and West prefer groundnut oil while those in the East and North use mustard/rapeseed
oil. Likewise, several pockets in the South have a preference for coconut and sesame oil.
Inhabitants of northern plain are basically hard fat consumers and therefore, prefer Vanaspati a
term used to denote a partially hydrogenated edible oil mixture. Vanaspati has an important role
in our edible oil economy. Its production is about 1.2 to 1.4 million tones annually. It has around
10% share of the edible of the market. It has the ability to absorb a heterogeneous variety of oils,
which don’t generally find direct marketing opportunities because of consumer’s preference for
traditional oil such as groundnut oil, mustard oil, sesame oil etc. For example newer oils like
sunflower, soyabean, rice bran and cottonseed and oils from oilseeds of tree and forest origin
have found their ray to the edible pool largely through vanaspati route. Of late, things have
changed. Through technological means such as refining, bleaching and de-odouraisation, all oils
have been rendered practically colorless. Odorless and tasteless, and therefore, have become
easily interchangeable in the kitchen. Newer oils, which were not known before they have
entered the kitchen, like those of cottonseed, sunflower, palm, oils or its liquid fraction
(palmolein) soybean and rice bran. About 60-70% predominately groundnut and mustard seeds
are used to make non-refined or filtered oils. This tends to have a strong and distinctive test
preferred by most traditional customers. The share of raw oils refined oils and vanaspati in the
total edible oil market is estimated at 42%, 48%and 10% respectively.
CHAPTER II
Introduction
Company profile
History of KIRTI dall mill ltd group
Plant location
Infrastructure
Promoters and their background
Management and organization
Quality objectives
Organization structure
INTRDUCTION
KIRTI DALL MILL LTD., Bijapur a small scale industry Registered at Bangalore to set up a
multipurpose unit with versatile and common facilities to manufacture edible oil and their
extraction in Bijapur district.
Oil industry
In spite of good monsoon the country‘s requirement of edible oils has not been completely met.
Hence, the government is encouraging the setting up of oil extraction industry, as the percentage
recovery from oil seeds in country is low.
The solvent extraction industry made a humble beginning in 1953 near Mumbai .today, about
1000 tons of rice brain I proposed of 222.55 tones of the value of Rs 11, 66,300/- lakhs per
annum. A separate table given, indicate the growth of the industry during last twelve years.
Further, any increase in the production of oil help to reduce import of oil exchange.
The under mentioned table gives the details of oil import and in turn a picture of the country‘s
demands.
The verity of oil cake like sunflower oil cake, kardi cake, groundnut oil cake and oil seeds like
sunflower (main raw material) to extent of 11400 MTD are available in the 200km surrounding
Bijapur. The promoters are having oil mills and are also dealing in oil cake from last 20-25
years. In view of the availability of seeds, cake and other advantages, the promoters have decided
to establish a 300 TDP solvent plant at Sholapur road Bijapur, to manufacture edible grade cake
solvent oils and deoiled means of oil cakes at Bijapur.
COMPANY PROFILE
13-FINANCIAL DATA
a) Promoters contribution ; Rs 60 %
b) Debt/Equity Ratio ; 1.74 : 1
c) Return on Investment ; 17.79%
d) Break Even point ; 48%
e) Turnover at BEP ; Rs 5Crores
f) Pay Back Point ; 6 Years (With 1 year moratorium)
**************************************
HISTORY OF
KIRTI DALL MILL LTD. Is public ltd company registered under Indian
company’s Act 1956 This Company is floated by bhutada family-promoters of KIRTI group of
industries from Latur. KIRTI group engaged in oil mill field since last 25 years and in solvent
and refining since 15 years .they have set a bench mark in edible oil field . They are biggest
producers of refined oil in Maharashtra region. With the proposed set up and expansion plan
undertaken by the group. Presently they have plant in Latur MIDC, Krushnoor MIDC in Nanded
district and Boramani in Sholapur district. In Latur they are having 1000TPD capacity solvent
extraction plant and 200TPD refinery. In Nanded there is 800TPD solvent extraction plant and
150TPD refinery. In Sholapur there is 1000TPD solvent extraction plant and 250TPD refinery.
And in Bijapur there is 100TPD solvent extraction plant and 100TPD expeller plant. These units
are running very successes fully. They know that success of any agro base company largely
depend upon the availability of raw materials. This is reason that they started their units in Latur
and Nanded. Latur is one of biggest markets of oil seeds in Maharashtra now they are enter in
Karnataka.
PLANT LOCATION
11 Solvent plant
10 Doc warehouse 21
INFRASTRUCTURE
LOCATION
The proposed unit will be at Aliabad, Bijapur. Bijapur district is one of the biggest & growing
markets in Karnataka and is bustling town. Bijapur is one of the fertile districts of region, where
nearly 75% of the total population depends one way or the other on agricultural land for
subsistence. Out of the total land under cultivation nearly 65% is utilized for producing oil seed,
food grain, major cereals, sugarcane, etc. Bijapur is one of important business center of
Karnataka state. The existing industrial and social infrastructure has helped to put Bijapur on
industrial map of Karnataka. Moreover Government of Karnataka has taken various initiatives
for increase of infrastructural facilities in the district. Geographically Bijapur district is located
on the boarder of tow states Maharashtra, & Karnataka. It is 550 Kms away from Mumbai and
Bangalore and connected by road and railway routes to all most entire India. Nearly 162 oil mills
are situated in the radius of 100 kms and further surrounding area grows maximum quality of
sunflower, kardi, and groundnut seeds in the state .the proximity of oil mills and availability of
raw materials make it convenient of raw material in time. The unit is located at Aliabad in
Bijapur district. All amenities like road, water, post, bank, police station, etc are already
developed in vicinity of the proposed unit. The location is most ideal one.
LAND
KIRTI DALL MILL factory is built in nearly 30 acres of land. And KIRTI Group has purchased
nearly 40 acres of land at new Aliyabad industrial area in Bijapur for establishment of new
refinery plant.
RAW MATERIALS
The raw material requires is sunflower seed and chemicals. Almost all raw material requirements
can be fulfills from local market. The other requirements are various types of consumable. they
have established relationship with the consumable suppliers and as such the supply of
consumable are assured one.
Main ingredients of raw material requirements are sunflower. Sunflower oil seed are cultivated
in sizable quantity in the areas of Maharashtra, Andhra Pradesh and Karnataka. Being the short
period intensively, excellent tolerance to draught and cash crop this is cultivated extensively.
Normally it takes around 90 to 100days to mature. Definite hybrid varieties are now in market
giving maximum yield in minimum period. The dominant variety (Sunfola) is High yielding
(about 2500 kg/ha), has a greater oil content (25 – 40%) and is easy to crush. Because of its thin
seed coat.. Figure shows supply of crushable sunflower. And soybean to the oil mills in
Karnataka for the period 2004-2008. Currently, sunflower is very important for sustaining the oil
processing industry when you compare it to soybean.
27,296
100000
80000
60000
SUNFLOER
40000
SOYABEAN
20000
0 SOYABEAN
2005 SUNFLOER
2006
2007
2008
YEARS
LABOUR
Unit has already engaged technically component persons. Manager is also well experience in oil
mill field. The other labour requirement like machine operators, lab technicians, skilled and semi
skilled labourer will be available locally and very easily. In none of the unit of this group threr is
labor storage and unrest. On the contrary extra labour force is waiting at the door step of the
company for entry in the group. Thus the company doesn’t see any labour problem either
technical or non-technical to proposed unit.
ELECTRICITY
Total electricity requirement of this unit is 1500 HP. Necessary infrastructure is available with
KEB.
FUEL (STEAM)
Boilers required for steam generation is to be purchased from THERMAX, a world leader in this
component .for one shift it require 8 to 10kg of steam.
WATER
Water composition is heavy in solvent plant as bcoz of boiler. Water is required both for
manufacturing and for human composition. In manufacturing it is required for cooling and in
process for washing. Water supply from tube well is main source of water supply. In additional
to these things Govt of Karnataka has given assurance for some permanent source of water to
supply to the unit in addition to this company will go for water percolation of recycled water of
the unit. All these measures together will suffice additional water requirement of the unit.
4) ANAND BHUTDA
The promoters are exposed to the oil manufacture trade of business since last 20-25 years
.with the filed experience they are exposed to, they have felt the necessity of setting up
one more solvent plant to run oil cakes. The promoters are best equipped with
knowledge. Experience and finance, and are having all the required and essential pre-
requisites for starting another solvent plant.
QUALITY OBJECTIVES:-
♦ Ensuring availability of all products in all packs sizes across the distribution channel.
♦ Creating and sustaining quality and hygiene consciousness at all levels of organizing and
promoting employees participation.
ORGANIZATION SRUCTURE
BORD OF
DIRECTORES
General
Manager
SALES
WAREHOUSE CLERK INCHARGE
INCHARGE(SHIFT)
COMPUTER
LABORATORY INCHARGE
OPERATOR
MACHINE
OPRETORES LAB ASSISTANCE
(SHIFT)
ELECTRICIENS
(SHIFT)
LABOURS (SHIFT)
CHAPTER III
Major departments in KIRTI Bijapur
A-Production department
Production process
Objectives
Suggestion
B- Quality control department
Test conducted at QCD
Functions of QCD
Objectives
C- Human resource department
Functions of HRD
Objectives
D- Finance department
Functions of finance department
E- Purchase department
Objectives
F- Marketing department
Objectives
MAJOR DEPARTMENTS IN
quality
control
department
Purchase prodution
department
department
KIRTI
DALL
MII
marketing finance
department department
HR
department
1) PRODUCTION DEPARTMENT
quality
control
department
purchase production
department department
marketing
department
finance
department
HR
department
1) By expeller and.
2) By solvent extraction.
1) BY EXPILLAR
In this plant three expeller machines of capacity 100 TPD are kept in straight line. The sunflower
seeds are dropped in conveyor, which is rotating chain the seeds, passes though machine 1
machine 2 machine 3. The machine. And machine mix the seeds with steam crashes the seeds
and the black color oil (unfiltered oil) come out and collected in tank. That collected unfiltered
oil is lifted to filter machine and collected in another tank this oil is called filleted oil .which can
be eatable but it contains FFA (free fatty acid) which is not good to our health.
Other hand the remaining part of seeds is called as cake. It cantaines13% to 15% of oil. Which
goes and collect in another room, which link with solvent extraction plant?
Oil is extracted from oil cakes using food grade solvent hexane as per I.S 3470 of 1966 as a
solvent. The basic process consists of leaking out oil from oil cakes using hexane and distilling
of hexane mixture is obtaining solvent extracted cake oil. The distilled hexane is recovered and
re used. The deoiled means is also freed from solvent by evaporation of hexane .the processing is
carried out in continues process plants. The process in detail describe below.
PREPRATION
Any material before extracted is prepared to make it suitable for extraction. Oil cake by nature is
a flake material, if used, as it is. Percolation of solvent through the material would be difficult.
Hence it is broken into smaller pieces through a cake breaker after conditioning it with live
steam. Which acts as a binder smaller piece will improve the percolation of solvent through the
material, thereby increasing the contract with solvent and extraction efficiency. Prior to cake
breaking the material is screened to remove all foreign matters and passed over a magnetic drum
to remove trap iron. The oil cake after cake breaker sent to the extraction plant via conveyor
which is equipped with as air blowing system to cool the oil cake. Necessary cyclone separators
are provided to recover any oil cake blown off during cooling
EXTRACTION
The prepaid oil cake is fed into continues extractor through an air lock valve. In the extractor,
which is of the continues moving bed, oil cake is subject to stage wise counter current extraction
using hexane as a solvent. The no of stages depends up on the speed (capacity) and oil content of
the cake. The oil cake moves on an endless belt over a series of troughs containing miscellia (oil
solvent mixture) of different concentration. as bed moves down the series of trough’s (each
troughs is a stage ) it is treated with miscellia of lower oil concentration till the final stage is
reached where fresh solvent is sprayed over fully extracted rice bran or spent meal. At the other
end of extraction, the fresh oil cake is reduce from 13% as well as 0.5%in the extractor. The fully
concentrated miscellia is spent to distillation to produce oil where as the spent meal is send to the
driers for solvent removal.
The spent meal from the extractor is conveyed through tight conveyor through a rotary feeder
valve the driers where it is desolventised by besting with external steam. The solvent evaporates
and it is condensed in the solvent recovery system and reused. The desolventised meal or deoiled
meal is discharged through a rotary valve to a conveyor which carries to the conditioning section.
Where, the meal is humidified to 10% moisture by water spraying before baking and storage.
The conveyor is also equipped with an air-cooling system.
The concentrated miscellia from the extractor is taken to an intermediate hold up vessel from
where it is pumped to the distillation section. Distillation is done in three stages under various
condition of temperature and vacuum, both of which increase with each successive stage. In the
last stage, traces of solvent are steam stripped from the oil, which is then pumped to storage. The
solvent vapors from each stage are condensed and reused. The final vent gases from the
condenser system are passed through the absorber and vent gas scrubber where last traces of
hexane are absorbed and hexane free gases are vented out. The recovered hexane is distilled off
and reused. Thus most of the solvent is recovered and recycled for use. The process requires
small quantities of solvent and that too, only as a makeup.
SUGGETIONS
The company has to provide sum safety measure to worker like mask, hand glosses,
shoes etc.
Decrease the set up time.
Update processes and procedure.
Control idle machine and manpower hours.
The main task of the quality control department is checking the quality of
oil. Seeds and DOC (de oiled cake) in the plant. There are various tests conducted by the officers
to meet this requirement. If any product does not pass through the quality standards then that will
be rejected. Even before dispatching the products they undergo testing and they must approved
by the quality department. Qualified quality control staffs are in charge of this section.
1) Analysis of sample
The successful implementation of quality control largely depends upon the quality or raw
material, selection of machinery and equipment. This is based on sampling technique.
The every consignments of raw material is carefully tested before production. the sample
is taken from different different bag of sunflower seeds and tested in laboratory.
Great care has to be exercised in processing oil cake and seeds without any
adulteration of store etc, at the mills. Hence every batch of oil cake and oil seeds
purchased should be analyzed for oil content, sand silica etc, for strict
enforcement of the quality of oil cake and seeds purchase.
To keep the solvent losses at the minimum a good system of cooling water supply
has to be ensured with the operation of efficient cooling towers installed.
The de oiled cake should not contain more than 0.6% of residual oil.
Proper powdering /breaking of oil cake has to be ensured for percolation of the
solvent and recovery of the oil.
To ensure proper quality control, attesting laboratory has to be set up. The
products have to be manufacture as per the standard in the Food Control Order for
the following products.
Requirement of deoiled meals as per solvent extraction deoiled meal and edible food
control order of 1969
Requirement OF solvent extracted cake oil refined grade 1 and raw grade 1 as per control
order, 1969
FINANCE
department
PRODUCTIO
N
department HR department
MARKETING
department QUALITY
CONTROL
department
PURCHASE
department
The most important assets that a firm must have and that management must be most be moral
concerned with are the human asset of the firm. The people working in a firm make it what it is.
A rich and continuing supply of qualified people /personnel is the best assurance an firm can
have that it will continue to grow and success.
KIRTI DALL MILL LTD has taken most of his employees from out of city, like
form Latur (solvent operators), Kerala (engineers), Bihar (labour) jat, sholapur and Nepal
(security). Because firm want specialist .maximum of employees are have good experience in
their field.
The recruitment, selection and welfare of the employees, training all functions of human
resources’ looked by company’s General Manager (AMIT KATARIA)
RECRUITMENT
By recommendation.
By employees referral.
By advertisement in news paper.
In last month company hired one new employee for computer operator by newspaper (praja
vani date -----------) advertisement.
Training
Methods of Training
On-job- Training:- the oldest and most commonly used Training technique in the small
scale unit is the On-job- Training
Over time
Company provides over time facility to their workers. As per the provisions of
the factory Act, 1948, any worker working for more than 9 hours in day, he is entitled to over
time.
Welfare payment
Company also takes care of welfare payment. illness and injury of the employees, their
compensation is of great importance to company.theirfore the company not considered
employees welfare is waste but an excellent investment which produce returns much greater than
the costs involved.(by Factory Act,1948).
To appoint right people, at right place at right time is main objective of human resource
department.
To provide training to new employees.
To check performance appraisal.
To provide necessary remuneration benefits to their employees.
To maintain their employees for long time.
FINANCE DEPARTMENT
PURCHASE
department
MARKETING
department
FINANCE
department
KIRTI
DALL
MILL
PRODUCTION
department
HR
department
QUALITY
CONTROL
department
This function influence the operation of the essential functioning areas of the as
production, marketing and personal.
MEANS OF FINANCE
S.No Description %age Rs.(in lac)
1 Promoter Contribution 60% 264
2 Subsidy/Soft Loan 30% 132
3 Term Loan 10% 44
Total 440
PURCHASE DEPARTMENT
MARKETING
department
PRODUCTION
department
PURCHASE
KIRTI department
DALL
QUALITY
CONTROL
departments
MILL
FINANCE
HR department
departments
As usual in any organization this department is engaged with purchasing of goods ordered by the
store department to maintain smooth functioning of all the departments in KIRTI DALL MILL
LTD BIJAPUR and to meet the requirements at a right time.
Main ingredients of raw material requirements are sunflower seeds. Purchase of raw material
from local market as well as from outside the Bijapur district. Company purchases seeds from
commission agents. Prices are fixe according to quality of sunflower seeds, which is tested in
laboratory.
The department is in intimation with the finance department to remit the bills to the
supplier. If there is any defect in the goods they are returned back and if the goods are not up to
the specification then the supplier is given notice.
FUNCTIONS
Following are some of the recommendations and suggestions to the company for getting
continuous sunflower seeds directly from the farmers-
The company must be directly attached to the farmers to obtain sunflower seeds directly from
them at cheaper prices. For this, they must approach directly to villages and appoint a person
directly from the village for the purpose.
Proper knowledge with the help of agricultural scientists must be given to the farmers about
advanced technology and improved seeds to increase production.
The company must open collection centers near to villages or a collection center for groupof
every five to six villages.
MARKETING DEPARTMENT
PURCHASE
Department
FINANCE
Department
MARKETING
KIRTI Department
DALL
MILL
HR
Department
PRODUCTION
Department
QUALITY
CONTROL
Department
SALES
In this company the major end product are filtered oil, solvent oil and DOC. The filtered and
solvent oil which is semi finished goods for refinery industries. The company is earning more
profit and goodwill in those products. But the major problem in sales of packed oil, which is
manufacture in Latur Maharashtra, Which is mother branch of KIRTI group. The sale of KIRTI
oil product in Maharashtra are satisfactory, but in Karnataka it is little bit difficult to cover
market because the brand name is new to the Karnataka market.
CHAPTER IV
Pricing strategy of KIRTI
Distribution of product
Feedback from retailer
Feedback from consumers’
Marketing segmentation
Marketing mix
SWOT analysis
Pricing decision effects the overall marketing skills and consumer acceptability. While the
external forces in which the commercial establishment to operates has to be taken on account the
but the internal forces, its strengths and weaknesses, the company objectives etc. have the
viewed in the competitive filed. Edible oil prices is affected not only because of national and
international market variations but because of internal factors such as government raw oils
import policies prices of other oils used in mixture and the total expected output of oil need
crops. The interstate ban on supply of raw oils also affect the pricing of the product.
While marketing the price structure the marketer has to watch carefully the pricing strategy
adopted by the competitors the pricing structure which represents the margin to the distributors,
retailers etc has an impact on the sales of the product, the pricing structure KIRTI GROUP is as
below :-
RETAILER’S MARGIN
KIRTI PALM 40 02 - - - - - -
KIRTI 55 02 350 20 - - - -
SOYALITE
KIRTI - - - - - - 825 30
SOYABEAN
DISTRIBUTION OF PRODUCTS: -
Distribution of the products is the main objectives of the marketing process. It is the process of
transferring the product from the producers to the distributors and ultimately to the consumers
through retailers. The decision regarding the channels of the distribution is very important
decision from the company’s point of view because the selection of channel affects considerably
the other marketing decision.
1) LOW MARGIN: - Most of the retailers complained that they get very low margin in all the
products of KIRTI Dall Mill Ltd as compared to its competitors.
2) EXPIRY PROBLEM: - most of time products expire due to low sales. And no replacement,
but other companies are giving them full replacement.
3) FEED BACK PROBLEM: - The retailers also complained that they get very less feedback
from the company, like whenever any scheme is introduced by the company, they are not even
made aware of the scheme
4) PRICE PROBLEM: - retailers complaint that the price of oil is high compare to same product
of other company..
1) PRICE PROBLEM: - customers complaint that the price of oil is high compare to same
product of other company.
2) DISCOUNT SCHEMES: - customer’s complaint that there are very less discount schemes on
sunflower oil as compared to other refined oil
The market strategy of the firm is designed especially for attaining the marketing objective of
company. The formulation of the marketing strategy consists of two steps:-
Market segmentation and target market selection have an intimate relationship with market
strategy formulation. The company may focus on the following factors while laying down the
target market.
Geographic Segmentation
Geographically the Bijapur district can be broadly divided into 2 sub segments -Rural, and
Urban.
Demographic Segmentation
Family Life Cycle : In terms of family life cycle it is addressed at all of the
following :
• Income: The income segmentation may be all households with an annual income
exceeding Rs. one lakh. Targeted audience may be all households that can afford a
television or have access to satellite television.
The objective of the marketing mix developed is: “To develop a product that is available,
affordable, based on local raw material, and adapted to the taste and the nutritional habits of the
population”. The elements of the mix - Product, Price, Place & Promotion have been entailed
below:
PRODUCT
Packaging: The packages or the cover packs, of the brands can be in Blue,
Green and Red color which represents a fun element so that the customers don’t even
realize that they are taking oil due to Dr’s recommendation. The packaging should keep
the product fresh and protected from the harsh climatic conditions in the country, and
hence provide a longer shelf life.
Sizes: As can be seen in the findings the most popular size is liters should be
used and exact weight should be provided.
Returns : the company has to care about retailer if any expiry goods or leakage
items has to take back, it increases the purchase capacity of retailer/wholesalers
Brand name .KIRTI group has earned good name in Maharashtra. KIRTI is
second largest producing oil in Maharashtra. But it is new for Karnataka people . but
company is making profit in loose oil i.e is in filtered oil , crude oil and DOC (de oiled
cake).but company has to increase its packed oil.
PRICING
Factors like competition, internal costs, the positioning and corporate objective of the company
need to be taken into consideration by a company before pricing a product.
Premium pricing (relative to the competing brands), with special emphasis on taste and quality
(most important attributes-see findings) is recommended. The premium pricing does not suggest
that the offering is made unaffordable to the target consumer. A high price would not accompany
a promise for a better taste and quality.
Further, the product category is relatively inelastic i.e. consumers would not stop buying their
favorite brands if the price is increased by a few rupees. Consumers feel that even if the price of
their favorite brand is reduced, they might not buy more of it.
PLACEMENT
The success of any FMCG product thrives on distribution. Factors like financial cost
effectiveness) perishability of the product, repeat orders; managerial capacity and unit value of
the product need to be carefully analyzed while setting up the distribution framework of the
company. The product category is essentially a “pull” market. However, the channel members
provide greater visibility to the product.
The first task in hand should be, to effectively map the territory into smaller more accessible and
controllable units. An effective territory mapping needs to be done not only to provide an
efficient coverage of the market but also to provide growth.
Company has to appoint more dealers for continuous supply of product and services.
Company should give quick delivery to distributors and retailers.
PROMOTION
This involves communicating persuasively to the consumers, in order to arouse their interest in
the product. A detailed promotion plan involving advertisement, sales promotion and public
relations is proposed.
Advertisement Plan
The Advertisement plan could be as under corporate objective: The corporate image should be
built over a period of time, so as to reinforce consumer confidence in the brands of the company.
This is also essential to counter competition, since over a period of time, names such as fortune,
sundrop, Gemini and sunrich have attained high levels of recognition and assurance.
Advertisement Objectives
• To position the product as a “high quality brand, with a wide range of offering, providing,
fun anytime, anyplace products”.
Media
• Print Media: Will be the major news paper read by the target segment i.e.., Indian times,
vijay Karnataka, saiukt kanataka etc..
• Electronic Media: Since the whole of target segment watch Satellite TV during prime
time and advertisement will be featuring share for 3 or more time to leave an impact. Public
Relation:
Trade promotion: The Company will have to offer lucrative trade promotion schemes, in order to push
primary sale. These include incentives to stockiest for pushing the sale of oil. At the retail level, the
following trade promotion measures may be adopted:
• Schemes such as, a certain percent off on the purchase of Rs 5000 or Rs10,000 worth of oil.
• Shop Displays
Consumer Promotion: Some of the consumer offers that could be introduced are :
2. Money Savers
Sales force: company has suffering problem of marketing personnel’s. Company has to
appoint good experience persons to sales.
CHAPTER V
Objectives of the study
Scope and limitation of study
Research methodology
Suggestion of retailer’s and consumer’s
Conclusions and recommendation
Bibliography
The study is being conducted for the KIRTI DALL MILL LTD BIJAPUR. This study tells us
an overall view of organization and functions carried out by different departments like
Production, Marketing, Human Resource, marketing, and Finance.
It is a hard fact that each study suffer from some limitations. So is the case with this
study.
• One of the limitations of the study is, as the information is collected from the retailers, the
monthly sales figure given by them is based entirely on their own judgment. So a few of them
might have given the wrong figures related to their monthly sales. Another limitation was that
some of the retailers were busy and could not give appropriate information. And also very few
retailers did not want to share any information.
• Another limitation of the study was the customers who were personally interviewed did
not want to share the actual data as few of them were giving fake data.
• The sample size being very small, that is, only 50 respondents limited the scope of research.
• Time constraints put boundaries to sample area and hence limited the extent of the study
• Taking convenience sampling might have led to some bias as people with different age
groups have different perceptions.
RESEARCH METHODOLOGY
A research design is the arrangement of condition for collection and analysis of data
in a manner that to, combine relevance to research purpose with economy in
procedure.
It constitutes the blue print of collection, measurement and analysis of data. Research
Design is needed because it facilitates the smooth sailing of various research
operations, thereby making research as efficient as possible yielding maximum
information with minimum time, effort and money. Research Design stands for
advance planning of methods to be used for collecting relevant data and techniques to
be used in the analysis .The design helps researcher to organize his ideas whereby it
will be possible for him to look for flaws and inadequacies.
2) Method of data collection: - for collecting data and the accuracy of facts, Complete
enumeration was used. for collecting the data a sample of retailers & Consumers were drawn
3) Data Analysis: - For the data analysis to know the market share of various Sunflower brands.
PRODUCT % PRODUCT %
Sunflower 35 Palm 40
Grounut 10 Soybean 10
Kardi 5
Sales
sunflower
palm
grounut
soyabean
kardi
Maximum sales is of palm,because of low price the low class families and hotel purpose.
PRODUCT % PRODUCT %
Kirti 5 Gemini 45
Ruchi 25 Fortune 10
Sundrop 15
Sales
kirti
gemini
ruchi
fortune
sunrop
Options % Options %
Shop display 3% - -
Advertising
Attractive packing
Retailer
Shop display
Pricing
Discount
Most of the customers consume sunflower oil because either they are suffering from any heart
disease or are health conscious or the ratio covered is 25%.
OPTION % OPTION %
Excellent 52 Good 32
Normal 16 Bad 00
Excellent
Good
Normal
Bad
52% of Customers are said the sunflower oil excellent. But discounts or the great offers they are
not getting,
Question 5:- Are you satisfied with incentives/margin from the oil company?
yes
no
Many of the retailers said that they are satisfied with the incentives they are getting, 76%retailers
are satisfied.
Question 6:- Are you satisfied with the services of the brand you are selling?
Yes
No
60% of the retailers said that they are satisfied with the brands the are selling. And 40% of the
retailers said that they are not satisfied with the brands the are selling.
Question 7:- If no then what are the suggestions you will give to the company?
OPTIONS % OPTIONS %
Margin 40 Scheme 32
Transportation 20 credit 8
margin
scheme
transportetion
credit
40% of the retailers want to give suggestions that company should provide company sales. More
margin to retailers. And some schemes which would help retailers to boost.
NAME % NAME %
KIRTI 5 Gemini 50
Ruchi 15 Sundrop 10
Furtune 20
50
40
30
20
10
0
kirt ruchi furtune gemini sundrop
Most used brand is Gemini 12 families are using Gemini oil out of 25 sample size. Because of
availability, quality and affordable price.
QUESTION 3:- Rank the following attributes according to their importance to you? (5 being
maximum)
GRADING (1, 2, 3, 4, 5)
1 2 1 3 3 1 5 5
2 8 2 8 2 1 6 3
3 10 3 9 4 1 9 4
4 2 9 3 7 3 3 7
5 3 10 2 9 19 2 6
Out of the various attributes shown above PRICE is one of the most important factor that
influences buying decisions of various customers
QUESTION 4:- If particular brand is not available with retailer then you will. . . . . ?
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
drop the idea go to another try new brand
outlet
As per the collected data it is clear that customers want to stick to their particular brand rather
than trying out some different brand
QUESTION 5:- What according to you a suitable price for 1 ltr sunflower oil which
is of good quality?
60%
50%
40%
30%
20%
10%
0%
below 40 RS between 40- between 50- more than
50 Rs 60 Rs 60 RS
AS clear from the above diagram it is clearly indicated that customers want price of 1ltr between
the range of 50 to 60 and 50 to 40 so that it is easily affordable for them..
QUESTION 6:- If your brand is few Rs expensive than it, then will you go for it?
70%
60%
50%
40%
30%
20%
10%
0%
yes no
Customers are ready to pay even high price because they are satisfied with brand what they buy.
QUESTION 7 :- A sale promotion scheme like rs 10 off , 250 gms extra or a product free, would
it affect you purchase decision?
80
60
40
20
0
yes no
Almost 72% customers agrred that sales promotion schemes do effect the buying decisions.
QUESTION 8: if new brand which have all the characteristics of your brand and which is
60%
50%
40%
30%
20%
10%
0%
yes no
56% of consumers are ready to buy oil if price is less than to their brand of same charecterstics.
The company should reduce the cost of their products and the margin of the retailers
should be increased.
In the same way, whenever any scheme is introduced for the consumer there should be at
least a print advertisement if T.V. advertisement is not possible.
Other incentives should also be given to the retailers like glow sign boards etc.
Regarding the introduction of new products, the company should go for aggressive
marketing. There is a lot of potential in Soya Refined oil segment, but retailers are not
even aware of our product.
Whenever any consumer oriented scheme is introduced, the scheme should be directly
targeted to that person who actually uses i.e., house wives.
Non monetary incentives should be also given to the retailers in each and every city.
They should be given glow sign boards and other sales promotional materials. This will
boost up their spirits.
BIBLIOGRAPHY
BOOKS
Company report.
WEBSITE
www. Google.co.in
www.kirtidallmill.om
CHAPTER VI
Questionnaire (consumer’s)
Questionnaire (retailer’s)
QUESTIONNAIRE
To Analysis of various brands of sunflower oil in market
ANALYSIS OF CUSTOMER RESPONSES
Date conducted by,
Address__________________________________________________________
We are request your valued opinion about the KIRTI oil product. Please tick
any or all questions as applicable.
QUESTION 1:- Do you use sunflower oil?
Yes No
QUESTION2:- If yes (check) the brand you use? Most used brands
KIRTI Fortune
Gemini Sunrich
Sundrop
QUESTION 3:- What factor influenced you to buy the above stated brand(s)?
QUESTION 4:- If particular brand is not available with retailer then you will. . . . . ?
QUESTION 5:- What according to you a suitable price for 1 ltr sunflower oil which
is of good quality?
Below Rs 40
Between 40 and 50
Between 50 and 60
More than 60
QUESTION 6:- If your brand is few Rs expensive than it, then will you Go for it?
Yes No
QUESTION 7:- A sale promotion scheme like Rs 10 off, 250 Gms extra Or a product
free, would it affect you purchase decision?
Yes No
QUESTION 8: if new which have all the characteristics of your brand and which is Less
price with your brand would you purchase?
Yes No
Signature
Thank you very much for sparing a while for answering this questionnaire.
QUESTIONNAIRE
phone no _________________
Address__________________________________________________________
We are request your valued opinion about the KIRTI oil product. Please tick
any or all questions as applicable.
Question 1:- Which oil customer buys more?
Sunflower Soybean
Grounut Palm
Kardi cotton
KIRTI Sundrop
Fortune Sunrich
Gemini
Pricing Discount
Health conscious
Question 4:- what are customer's feedback regarding sunflower oil?
Excellent Good
Normal Bad
Question 6:- Are you satisfied with incentives/margin from the oil company?
Yes No
Question 7:- Are you satisfied with the services of the brand you are selling?
Yes No
Question 8:- If no then what are the suggestions you will give to the company?
Transportation Scheme
Margin Credit
Signature
Thank you very much for sparing a while for answering this questionnaire.