dhanhar masala

Dhanhar Masala Pvt. Ltd.

A Summer Project On Analysis of Four Departments of Dhanhar Masala Company

For the partial completion of graduation degree in BBA From Prof. V. B. Shah Institute of Management Prepared by: Submitted to : Prof. V. B. Shah Inst. of Mgt.

Prof. V.B. Shah Institute of Management

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AcknowledgementI would like to thanks to Veer Narmad South Gujarat University to include this summer training in the curricular of B.B.A. program. I experess my deep sense of gratitude to DHANHAR MASALA PVT.LTD.to allow me to do summer training & giving me their best to accomplish the same. I would also thanks all the faculty members of college to help me greatly in preparation & Guidance during the training. I also thanks all members of DHANHAR MASALA PVT. LTD. to support & guided me during the summer training. I would like to thanks with great pleasure on colleagues, who helped me in successfully completed this project.

Date: Place: Surat


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Dhanhar Masala Pvt. Ltd. Yours Sincerely,

Executive SummeryThe project basically deals with the recently the customer of Dhanhar Masala. The servey about the customer satisfaction. The servey says that most of people give top rank to the best masala of industry. In this project, we have covered four cites for the servey of test of masala for the purpose of to identify about the industry awareness, satisfaction of services, which were provided by the DHANHAR MASALA PVT.LTD. Finding said that industry has not yet covered the business persons those who are used masala for the purpose of pleasure, test & safety of health. So, it is necessary to marketing in that sense to cover all the various customers. All the information is presented in simplified manner have been included wherever required.


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DeclarationWe here by declare that this training report is prepared with my own efforts as well as under guidance of manager of DHANHAR MASALA PVT.LTD. This report has been prepared at DHANHAR MASALA during 20/4/2011 to 20/6/2011 with my skills & Management tools & techniques, which we learnt in college during first two years. This report has not been previously submitted by any one to any university, for award of any other degree. If we found to be guilty of not fulfilling the above promises, Our submission can be declared invalid & college has the right to reject this project.

Name of the Student, Banti Patel. Prof. V.B. Shah Institute of Management Page 4


Date: Place:

PrefaceThe knowledge lies every where whether it is theoretical or practical. Theory of any subject is important but without its practical knowledge it becomes useless particularly for management student. As a student of the business administration, we have studies many theories in the class room but after taking up this project works, we have experienced & understood these management theories & practices in its full sense, which play vital role in business field today. This report is designed with the objective to gain practical knowledge about the beverage industry its working & functioning in different department of DHANHAR MASALA PVT. LTD


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MISSION & VALUESOne of the greatest strengths of the Dhanhar Masala industry is its ability to developed customized products. This policy of Dhanhar Masala industry has helped to build close ties & mutual trust with customer globally, thus increasing worldwide acceptance of its products. MISSION: To delight the customer by continuously developing new products tuned to evolving needs & maintaining high standard of quality & efficiency in production & prompt delivery. VALUES: 1. 2. 3. 4. 5. High priority on customer satisfaction. High standards of consistent quality & reliability. Promoting use of modern technology & practices. Minimizing profitability for cost-effectiveness. Commitment to community development environment protection.

&


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INDEXSr. no. 1 2 3 4 5 6 Subject Introduction Marketing Department Human Resource Department Production Department Finance Department BibliographyPage 7

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7

Annexure

INTRODUCTIONHistory of Industry:DHANHAR MASALA BHANDAR introduce it self as a leading manufacturer & exporter of Indian particularly masalas, Hings & others. Established on 1966, the company has always followed the philosophy of providing quality products & services to our ever increasing clientele. Today DHANHAR has become a name synonymous to Indian spices, its tastes & aroma, & has becomes a name of repute in spices & hing industry. The name DHANHAR itself can notes MASALA. DHANHAR MASALA starting in the home place & its first products is Hing.

Meaning of Dhanhar:Prof. V.B. Shah Institute of Management Page 8

Dhanhar Masala Pvt. Ltd. DHAN means LAXMI HAR means MAHADEV DHANHAR names comes for the two dynamic people, first is Dhansukhlal & seconds is Harkishanlal. DHAN meams Dhansukhlal. HAR means Harkishanlal.

History An Overview:Thirty eight year back, two dynamic entrepreneurs, Mr. Dhansukhbhai Chhabildas Vankawala & Harkishanlal vankawala, pioneers in spices & Hing industry & connoisseurs of Indian testes, joined hands together to start Dhanhar Masala, supported by Mr. Bipinchand Chhabildas Vankawala; a mechanical engineer by profession. The firm started as a gruh udhyog manufacturing Hing, graduated in terms of size & volume; obviously due to healthy response from the market. In the 1972, a manufacturing plant was established in surat. The company started manufacturing spices in 1976 with a singal product Dal Shak Masala & has consistently climbed up the growth ladder since. The company at present is manufacturing more than 30 different spices. For bulk order, we can customize the products according to your requirement. In 1990, a major milestone was achieved when the company got AGMARK certification of its Hing. In 1995, same certificate accorded by the spices. Prof. V.B. Shah Institute of Management Page 9

Dhanhar Masala Pvt. Ltd. When company started, it goes in the loss, but after some time loss converted at big & big profit. In the 1977, the price of Dal shak masala was just 7 Rs. In 5 Kg. So, its very chipper. In the 1988, Hings packaging stared & published name at the BHANDHANI HING & also developed a brand name of Dhanhar Masala. All the production by manually, no machine work of this time. On this time means, 1988; the staff was just 10 people in Dhanhar Masala & now the staff is about 62 people in dhanhar Masala. Manually works time period is 1988 to 1996, means about 8 years. Under the able guidance of the promoters, the company has reached to a position, par excellence. Mr. Hitesh Vankawala, ( B.Com, L.L.B.) & Mr. Jignesh Vankawala, ( B.Com), able sons of Mr. Dhansukhbhai joined business in 1992 to 1998 respectively. Mr. Hitesh are looking after sales department Where as Mr. Jignesh are looking after Quality & Production department. The new entrants are following there fathers footsteps & have the enough dynamism & acumen to lead the company to new heights. The company boasts of modern machinery & high technology to attain the quality without losing the traditional aroma of Indian spice. Our products are well known for their high purity. The reliability, flexibility, competitive pricing & prompt services have been the pillars of the companys reputation & success. Prof. V.B. Shah Institute of Management Page 10


2. MARKETING DEPARTMENT


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1) Marketing environment 2) Products of the industry 3) Packaging & Labeling 4) 5) 6) 7) 8) 9) Price of the products Organizations buying process Product life cycle & Marketing strategy Channels of distribution Marketing / sales department at a glance Promotional activity


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Structure of Marketing DepartmentClerk Peon Agent Head ofHitesh Marketing bhai (Head) Department


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1. Marketing Environment (Competition)There are some points which are used in DHANHAR MASALA are given bellow here in the marketing environment (competition). A. Concept of target B. Concept of channel C. Concept of competition D. Concept of public

Concept of Target:There is annual tern-over is 3 ton per day (1080 ton per year). Profit target of the company is 20% of sales.

Concept of Channel:There are three types of marketing chanel.

1) Communication Channel:Through this channel deliver & receive massage from target market. The companys communications channel includes News paper, Radio, Local TV channel, postures, Local transportation.

2) Distribution channel:Through this channel company display sell & deliver the physical products to the buyers. Prof. V.B. Shah Institute of Management Page 14

Dhanhar Masala Pvt. Ltd. Company include CNF (super stockist), Distributor, Shop keepers etc.

3) Service Channel:-

Through this channel company can carry out transactions with potential buyers. This channel include Agent Godown Delivery, Warehouses, Transportation companies, Insurance company etc.

Concept of Competition:It includes all the actual & potential rival offering & substitute of there product a buyer might be consider. The company may be of monopoly, total competitive or oligopoly. E.g. There are many masala brand against Dhanhar Masala as like as SK masala, Gajanand masala, & Ramdev masala.

Concept of Public:The Population outside of the company within the nation. From which company can identify their potential buyers, current users, Decision makers & general public

Macro Environment1. Social & Cultural Environment:Dhanhar masala does not affect to cultural factors but its affect social factors because cultural factors cultural, sub-cultural, social factors. Prof. V.B. Shah Institute of Management Page 15

Dhanhar Masala Pvt. Ltd. Society sales belief, values & harms that largely define testes & preferences of customers. Peopal observe almost unconsciously a world view that defines their relationship to them to measures & the universe. Regional differences in language, customs, social system, values, habits, & religion & cast system may be social & cultural environment.

2. Technological Environment:One of the most dramatic force shopping people live is technology. Technology includes automatic packing machine, computers, printers, etc. There are many technology is being used in Dhanhar Masala. Technological environment increase production more & more. Because of using technical machinery & equipments it takes low/minimum time for maximum production.

3. Political & Legal Environment:There are two main sub-points in this environment.

Company must have a good working knowledge of the major low protection competition, consumer & society.

Increase in the business environment:-

There are five types of protecting welfare of customer in Dhanhar Masala. Safety Prof. V.B. Shah Institute of Management Page 16

Protection the welfare of the customer:-

Dhanhar Masala Pvt. Ltd. Information Choice Redresses Representation

4. Economic Environment:Marketers require purchasing power as well as people. The available purchasing power in economy depends on current income, price, debts, saving & credit availability. Income distribution is also creating major impact for economy growth.

Physical EnvironmentRaw Material:Dhanhar masala Purchasing row material from various Country & states. E.g. - Red chilly powder from Karnataka, - Hing from Afghanistan - salt from Pakistan - Plastic package from Mumbai

Live Stock:They are no expiry date which are reaching or not reach to consumer in Dhanhar Masala.


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2. Products of the Industry (Product Mix)There are many products of Dhanhar Masala industry. Which are bellow here;

Product no. 1 2 3 4 5 6 7 8 9

Product Name Agmark Hing Chilly Powder Turmeric Powder Coriander Powder Coriander-Cumin Powder Aachar Powder Rajwadi Garam Masala Tea Masala Chhole chana MasalaPage 18



10 11 12

Kitchen Hing Masala Chat Masala Pavbhaji Masala

Product no. 13 14 15 16 17 18 19 20

Product Name Panipuri Masala Panjabi Gravy Masala Garlic masala Buttermilk masala Chewada Masala Milk masala Sambhar Masala Biryani Pulao Masala


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21 22 23 24 25 26 27

Singoda Masala Rajwadi Atta Sindhav Salt Chicken masala Mutton Masala Fish Masala Tandoori Chicken masala

So, there are lot of item production in the DHANHAR MASALA, Which are daily use in home & hotels.

Product MixMeaning of Product mix:A Product mix (also called product assortment) is the set of all products lines & items that a particular seller offer for sale to buyers.An organization with several product lines has a product mix. In other words, Product mix is the composite of product offer for sale by a firm. It is the collection of product manufacture or distributed by the firm. Prof. V.B. Shah Institute of Management Page 20

Dhanhar Masala Pvt. Ltd. Product Mix has three main characteristics; Width Depth Consistency Width of the product mix is concerned with the number of the products line marketed by Dhanhar masala. Width & smaller number of products lines narrower is the product mix. Depth of the product mix depends on the average number of the total items included in to the product line. The average number of product item smaller is the depth of products. Consistency of the product mix indicate how far or to what extent the product lines are interconnected with each other from the view point of final use or channel of distribution. The Following situation indicates lack of optimization of Product mix. I. A situation of excess production capacity arising seasonally or very often. II. I proportionately very high percentage of profit from a few item of Dhanhar Masala. III.Insufficient width of product mix to the extent thet maximum benefits of Dhanhar Masala sales for contacts. Importance of product mix in Dhanhar masala. i. Profit Maximization ii. Maximization of sales iii. Stability of sales & sales income iv. Maximum Benefits Prof. V.B. Shah Institute of Management Page 21

Dhanhar Masala Pvt. Ltd. Profit Maximization, With the help of product mix available opportunities can be turned into maximum profits. This would be not having been possible in its absence. Maximization of sales, in this point to improving in the sale maximum level. It helps to in exploiting the situation for maximizing the sales. Stability of sales & sales income, any decrease in the sales of any product item of Dhanhar Masala disturbance in optimum product mix & income also decline. So, the sale of any item of Dhanhar Masala is stability of sales & sales income can be maintained. Maximum Benefits, the salesmen of the present product come in contact with a large number of customers. By introducing a new products maximum benefits of their contact can be derived with minimum cost & maximum into the profits.

3. Packaging & Labeling:1. PACKAGINGMeaning of Packaging:Packaging means, The wrapping of goods before they are transported or stored or delivered to a customers. In the other hand, packaging is the sub-division of the packaging function of marketing. Packaging has been define as, An activity which is concerned with protection, economy, convenience & promotional consideration. Prof. V.B. Shah Institute of Management Page 22

Dhanhar Masala Pvt. Ltd. We can define Packaging as, All the activity of designing & producing the container is called the Package. The Packaging has three levels, they are following: Primary Package Secondary Package Shipping Package Packaging is also kept pace with our products & its market, conforming to international standards & featuring diverse packing methods to match client requirement. Packaging is not available in Kg with double polypropylene in liner in trucks. It is also available 10000 kg cardboard boxes on wooden pallets. Trucks are also available for 5000 kg & 10000 kg. We have a special inspection team, which ensures the quality of packing before the material is dispatched from the works.

PRIMARY PACKAGE


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This is the primary packaging of the Garam Masala in the Dhanhar Masala industry. So, this is the first step Prof. V.B. Shah Institute of Management Page 24

Dhanhar Masala Pvt. Ltd. of the Packaging of masala. All types of masala packaging like this type but this is the example only Garam Masalas packaging.

SECONDARY PACKAGING


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Dhanhar Masala Pvt. Ltd. This is the secondary packaging of garam masala in the dhanhar masala industry. So, this is the second step of the packaging of the masala. This is the important steps of the packaging.

SHIPPING PACKAGING


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This is the last & final means shipping packaging of the garam masala in the dhanhar masala industry. It Prof. V.B. Shah Institute of Management Page 27

Dhanhar Masala Pvt. Ltd. is the very important packaging of the masala because when its over then production supply in to the market & use consumer & others. So, The packaging of a consumer products is an important part of the marketing. A good number of companies adopt aquare packaging place of round packages which save space. There are many factors to be consider while designing a package. Dhanhar Masala used kind of the material for the packaging: 1) Card board contriver 2) Plastic contriver 3) Plastic bag 4) Non-own bag 5) Pouches 6) Paper contriver 7) Clothes. Kinds Packaging of Dhanhar Masala is bellow here: 1) Consumer Packaging. 2) Family Packaging. 3) Multiple Packaging. So, There are different packaging produce by Dhanhar Masala for customers. Packaging size of Dhanhar Masala is 1 kg., 5kg., 15kg, & 40kg.

2. LABELINGMeaning of Labeling:Prof. V.B. Shah Institute of Management Page 28

Dhanhar Masala Pvt. Ltd. Label is a part of product, which carries verbal information about the products or the sellers. It may be a part of a package, or it may be a tag attached directly to the products. Label may be small slip or a printed statement. DHANHAR MASALA use three types of label, which is following here: A Brand Label. A Grade Label. A Descriptive Label.

Label gives following information in any product in theproduction.(DHANHAR MASALA).1. Brand name. 2. Picture of the product. 3. Address of the producer & industry. 4. Gross & Net quantity of the content. 5. Ingredients in the products. 6. Direction of the use. 7. Precautionary measures. 8. Nature of the products. 9. Date of packaging & expiry. 10.Retail Price.


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4. Price of Products (Pricing Policies)Meaning of Price:It includes price, trade discount, cash discount, credit terms, & collection policy. The price is determine normally after considering production cost, distribution cost, quality, rivals price & Government control.

Pricing policy of industry:Price is the one element of the market mix that produces revenue. The other element produce costs. Price is the one of the most important factors that affect demand, growth of company, market share, competitors, supplier etc. so we can say that the price is decide by considering this all factors. Price may be suitable to product & market.

How to deciding the price.Dhanhar Masala has taken a certain step to fix up the price of its different products. 1) Selecting the pricing objective. 2) Determination of demand for products. 3) Estimating the cost of the production. 4) Analysis the competitors cost, price & offers. 5) Selecting the pricing Methods. 6) Selecting the final price. Prof. V.B. Shah Institute of Management Page 30


Responding to the competitors price

The company may react the change in competitors price changes in following way, 1) Maintain price 2) Maintain price & add value 3) Reduce price 4) Increase price & maintain quality 5) Launch a low price fighter line Starting price of the Dhanhar Masala is 1, 2, 5, 50, 100, 200, & 500 up. Price list of Dhanhar Masala for the different masalas items in the markets to the customers. ( 100 kg )

5. Organizations Buying Process:Dhanhar Masala Pvt. Ltd. Industry has major business in industry. It provides a row-material to the other industry or processing units like dyeing mils, printing units, & others. The order placing for the row-material: 1. Problem re-organization 2. General needs specification 3. Products specification 4. Supplier search 5. Proposal solicitations 6. Supplier selection 7. Order routine specification 8. Performance review

Wheres comes Row-materials?Prof. V.B. Shah Institute of Management Page 31


Red chilly powder from Karnataka Hing from Afghanistan Salt from Pakistan Plastic package from Bombay

6. Product Life Cycle & Marketing StrategiesMeaning of product life cycle:As every being has life, a product has its life. Industrial goods may have a longer life than consumer goods. Products, like human beings, have length of life for making sales & earning profits. The product life cycle is generally termed as product market life cycle, because it is related to particular market. For instance, an old products in the market of Bombay may have a life in a village. The product life cycle may be short for same products & long for some other products. The period may differ from product to product. But the product passes through the stages, collectively known as product life cycle.

Chart of the product life cycle in dhanhar Masala:-


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Introduction:-

Product is new, awareness in market, cost of marketing high & profits are low. Introduction is the first stage in the life of the products. This is an infant stage. The product is a new one. The new product means, A product that opens up an entirely new market, replaces an exiting products or significantly broadens the market for an exiting products. In this stage profits may bellow, because of heavy advertising & sales promotion in order to stimulate the demand.

Marketing strategy:-

There are four type of the marketing strategy in Introduction stage but Dhanhar Masala use only two types of the strategy. a) Low price & a bog promotional expenditure budget Prof. V.B. Shah Institute of Management Page 33

Dhanhar Masala Pvt. Ltd. b) Low price & a small promotional expenditure budget If the market is very wide, customers are unfamiliar with the product & sensitive to the price & the market is also competitive this strategy is adopted for the quick entry in the market. If the customers are price sensitive & promotional expenditure are not likely to increase the sales & the customers are familiar with the product strategy is adopt for early & quick entry of the production in the market.

Growth:-

The product has given satisfaction to the first buyers. Salas increase rapidly & product started generate profits. Growth is the second stage in the life of the product. In this stage, the product satisfaction the market & a product gains acceptance from the part of consumer & Businessman. So, sales & profits are increase. The success of the firm depend upon the efficient manufacturing & distribution system of the products. Previous buyers continue in their purchase & new buyers appear.

Marketing Strategy:

There are five type of marketing strategy in Growth stage but Dhanhar Masala use only four types of Marketing strategy; a) To increase the quality of the products & add new feature of the product. b) To start a campaign to search out new area of market. c) To intensity the advertisement & find out the distribution for wide spread sales. d) In order to attract price marketing strategies the industry to decrease the price at appropriate time. Prof. V.B. Shah Institute of Management Page 34


Maturity:-

The product reaching maturity & sales are good. But better for market share is about to begin. At this stage, keen competition increase. Sales continue to increase for a while, but at decreasing rate. Competitors go for mark down price by increasing advertising deals. Market expenses increase, even after mark-down price, which enable to face competitors. Thus, profits are thinned, Additional expenses are involved in production modification in the market. Overall marketing effectiveness becomes the key factors in this stage.

Marketing Strategy:

There are five types of marketing strategy in Maturity stage & Dhanhar Masala can used all the strategy, a) Effort should be made to enter into new market. b) Step should be taken to increase the utility of the product. c) Product should be made familiar with other classes of customers. d) Product should be improved very much. e) Alteration should be made in the marketing mix to suit the changing condition. So, in Dhanhar Masalas every products moves through the life cycle, having three phases, which are abive the detail.

7. Channels of Distribution:Meaning of Channel of distribution:Prof. V.B. Shah Institute of Management Page 35

Dhanhar Masala Pvt. Ltd. According to American Marketing Association; A channel of distribution or marketing channel is the structure of intra-company organization units & extra-company agent & dealers, wholesale & retail through which a commodity, products or services is marketed. According to Richard M. clevent, A channel is the pipe line through which products floes in its way to the customers. The manufacturer puts his products into the pipe line or marketing channel & various marketing people move it along to the consumer at the other & of the channel. Marketing channels are the distribution network. Product flow to the market through the distribution Network. Marketing channel & Channel of distribution. Is a path traced in the direct or indirect transfer of ownership to a product, as its move from a producer to ultimate consumer / industrial users.

Channel of distribution in Dhanhar MasalaManufacturerCNF (Super Stockiest)Prof. V.B. Shah Institute of Management Page 36


AgentWholesaler Retailer Consumer

Distribution channel:The producer & the final customer are part of every channel. We will use number of intermediate levels to designate the length of channel. There are many type of distribution channel in industry. There are following; 1. Zero level channel. 2. One level channel. 3. Two level channel. 4. Three level channel. Prof. V.B. Shah Institute of Management Page 37

Dhanhar Masala Pvt. Ltd. Dhanhar Masala use to zero level channel & one level channel in rare case they use a two level channel company get an export order by E-mail & domestic market. There is use one level & two level.

8. Sales Dept. at a glance Main product of masala essential commodities in sales in open market by masala agent & super stockiest as per daily marketable etc. Masala factory reputed person perform as an agent & super stockiest taken a some deposits amount from masala. Masala delivered against only demand draft & cash. There is a some control about realizing masala quota for even month edusting by control government department. It means department of food supplest, Government of India. Masala factory export masala about as per instruction by control government benefits to masala factory for exporting. Price as per the domestic market depend upon demand & row materials.

9. Promotional ActivitiesMeaning of Promotion:Promotion means a set of effort made by the company for stimulate the demand for its products & product without making any alteration in product mix, price & channel of distribution. Promotion is any communication activity whose main object is to move forward a Prof. V.B. Shah Institute of Management Page 38

Dhanhar Masala Pvt. Ltd. product, service or an idea in a channel of distribution. It is a set of effort by marketer to inform & persuade buyers to accept, resell, recommended or use the article, service or idea which is being promoted. It is a form of communication with an stimulating demand by affecting knowledge, preference, attitude & behaviors of the buyers.

Important of promotion in Dhanhar Masala:1. 2. 3. 4. 5. 6. Increasing distance between product & customer. Need of communication in expanded market. Information to the market intermediaries. Stimulates demand Reviving of demand. Makes other element of marketing mix meaning full.

Customers purchase masala items above Rs 1000 up. So, Dhanhar masala given one shopping beg. Customer purchase masala item above Rs 2000 up. So, Dhanhar masala given one Travelling Beg.

Promotional & Advertising policies:Dhanhar masala is a private limited company. Its customers are very satisfied with the products & services that they are provided. As we know that the best advertising is done by the satisfied customers, most of the times the customers themselves recommend product of Dhanhar Masala in their business circle. No Prof. V.B. Shah Institute of Management Page 39

Dhanhar Masala Pvt. Ltd. other advertising policies are followed by Dhanhar masala as such as they never felt need of doing so till now. But in case if there is any need of promotion, they make use of consumer direct channel to reach & delivered goods to the customer without using any middlemen. These channel include telephones & fax devices. Generally they received ordered in abundance, but during slack time they call on their customers & ask them to place their orders. They try to tempt them by saying that production of so an so masala is being carried out & if they placed their orders soon they will get prompt delivery or else they will have to wait for 4 to 5 hours for delivery if they make it late. This kind of direct marketing helps them to build continuous relationship each customer & also make their offers & strategies less visible to their competitors. Also they provide the booklet containing samples of their varieties of masala to their customers.

3. Human Resource DepartmentProf. V.B. Shah Institute of Management Page 40



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Dhanhar Masala Pvt. Ltd. Activities of personnel / HR department Recruitment & Selection Human Resource Planning Training & Development Promotion & Transfer Performance Appraisal Wages & Salary structure Employee Welfare Human Resource Audit Hierarchy structure of Organisation Absenteeism Rate Employees Turnover

Structure of HR Department


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Agent Clerk Peon Hitesh Head of HR bhai (Head)

Department

Introduction:Prof. V.B. Shah Institute of Management Page 43

Dhanhar Masala Pvt. Ltd. HRM is that branch of management which is responsible on a staff of concentrating on those aspects of relationship of management to employee & with the development of the individual & the group. The objective is to attain maximum individual development, desirable working relationship between employer & employee, employee & employee, & effective molding of human resource as contrasted with physical resources. In Dhanhar Masala, there is more importance is given to the personnel because all work are done by human beings if right person appointed than company can get success in its works. Industry believes in getting well persons for its work.

Activities of personal / HR DepartmentMeaning of HR:HRM is a management function concerned with hiring, motivation & maintaining people in an organization. The function & principle are applied to acquisitioning, developing, maintaining & remunerating employees in organization.

Definition of HRM:HRM is a series of integrated decision that form the employment relationship, there quality Prof. V.B. Shah Institute of Management Page 44

Dhanhar Masala Pvt. Ltd. contributes to the ability of the employees to achieve their objectives. HRM is a management in planning, organizing, directing & controlling of the procurement, development, compensation, integration, maintains & separation of HR to the end that individual, organization & social objectives are accomplished.

Activities of HR departmentHRM department helps managers to recruit, selection, trained & develop members for the company. HRM is concern with the people dimension in organization. HRM refers to the set of program function & activity design & carry out in order to maximize. Both employees & organization effectiveness. The main activity of HRM department are to recruitment, selection, training & development of the members of the organization.

The functions, which used by HRM department in Dhanhar Masala1) Managerial Function 2) Operative Function

1) Managerial function:I.

Planning:-

Planning is the process of deciding the goal & formulating policy & programs to achieve the goal. Prof. V.B. Shah Institute of Management Page 45

Dhanhar Masala Pvt. Ltd. Planning involves forecasting & research. Planning helps to face successfully the changes that are likely to take place in future. In preparing human resource budjet.II.

Organizing:-

Organising is the process of allocating tasks among the members of the groups. Establishing authority & responsibility relationship among them & integrating their activity towards the common objectives. Organizing is the framework through which management directs controls & co-ordinates the efforts of people.III.

Directing:-

Directing is the process of motivating, activating, leading & supervising the people. Directing includes all those activity by which a manager influence the actions of subordinates. Directing is the heart of the management process. Directing also help in building sound individual & human relation in an organization. IV. Controlling:It implies checking, verifying & regulating to ensure that everything occurs in conformity with the plans adopted & the instruction issued. Such monitoring helps to minimize the gap between desired result & actual performance.

2) Operating Function:-

There are five functions in the operative function. But Dhanhar Masala use only three functions in their industry, which are bellow here. a) Procurement Function:Prof. V.B. Shah Institute of Management Page 46

Dhanhar Masala Pvt. Ltd. Procurement Function is concerned with securing & employing the right kind & proper number of people required accomplishing the organizational objectives. Dhanhar Masala consists only five activity in procurement function. 1) Job analysis 2) Human resource planning 3) Recruitment 4) Selection 5) Placement

b) Development Function:Human Resource development is the process of improving the knowledge, skills, aptitude & values of employees so that they can perform the present & future jobs more effectively. Dhanhar Masala consists only three activity in Development function. 1. Performance appraisal 2. Training 3. Exicutive Development

c) Compensating Function:Compensating Function is refers to providing & fair remuneration to employees for their contribution to the attainment of organizational objectives. Dhanhar Masala consists only three activity in Compensation function 1. Job evaluation 2. Wage & salary administration 3. Bonus


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2) Recruitment & selection1. RecruitmentMeaning of recruitment:Recruitment is understood as the process of searching for & obtaining applicant for job, from among whom the right people can be selected. Recruitment involves attracting & obtaining as many application as possible from eligible job-seekers. Organization have to recruit people with requisites skills, qualification & experience if they have to be sensitive to economic, social, political & legal factors within a country.

Definition Of Recruitment:-

Recruitment is the process of finding & attracting capable applicant for employment. The process begins when new recruits are sought & ends when their application from which new employees are selected.

Process of recruitment in Dhanhar MasalaThe following steps of recruitment are used in Dhanhar Masala.

PlanningProf. V.B. Shah Institute of Management

Strategy development

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ScreeningEvaluation & control1)

Recruitment Planning:-

Planning is the first steps of the recruitment process. Plannings involves the translation of likely job vacancies & information about the nature of the job.

Dhanhar Masala, Recruitment Planning deals with:Type of application refers to the types of people to be informed about job opening. These details are available through job description & jab specification.2)

Strategy development:-

Once it is known how many & what type of recruits are required serious considerations needs to given to, Buy decision Source of recruitment Sequencing the activities in the recruitment process Buy means hired skilled workers or professionals. If employees has the advantage in the sense that the skilled Prof. V.B. Shah Institute of Management Page 49

Dhanhar Masala Pvt. Ltd. professionals & labour can be the work immediately & little training may be needed.1)

Screening:-

Screening is to remove from the recruitment process, at an early stage, those applicants who are visible unqualified for the job. It Screening, clear job specification are unavailable. Applicant qualifications judge on the basis of their knowledge, skills, abilities & interest required to do the job.

2)

Evaluation & control:-

Evaluation & control s necessary as considerable costs are incurred in the recruitment process. Statistical information on the cost of advertisement, time taken for the process, salaries for recruiters, time spent on preparing job description, job specification, recruitment overhead & administrative expenses.

2. SelectionMeaning of selection:Selection is the process of picking individual with requisite qualification & competence to fill jobs in the organization. The objective of selection process is to determine whether an applicant meets the qualifications for a Prof. V.B. Shah Institute of Management Page 50

Dhanhar Masala Pvt. Ltd. specific job & to choose the applicant who is most likely to perform well in the job.

Definition of selection:-

Selection is the process of differentiating between applicants in order to identify & hire those with a greater likelihood of success in job. Selection is the most important process of the any company & industry. Selection is the based on choose best workers & employment for the industry.

Process of selection in Dhanhar MasalaThere are five steps of the selection process used in Dhanhar masala. Which are bellow here,

Preliminary interview Selection test

Employment interviewProf. V.B. Shah Institute of Management Page 51


Reference check

Physical examination Preliminary interview:-

I.

Preliminary interview is the first steps in the selection process in Dhanhar Masala. Preliminary interview, on the other hand, helps reject misfits for reasons, which did not appear in the application forms.II.

Selection test:Generally, tests are used to determine the applicant ability, aptitude & personality. Different types of tests are used in Dhanhar Masala are as under, Ability Test Personality test Medical Test

I.

Employment interview:An interview test is conducted at the beginning & at the end of the selection process. The emphasis here is on the letter. Different types of interview are taken into Dhanhar Masala are as follows, One to One interview Sequential interview


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Dhanhar Masala Pvt. Ltd. Personnel interviewI.

Reference check:Reference check is the most important process of the selection. Many employee request name, address & telephone number of reference for the purpose of verifying information & perhaps, gaining additional background information on an applicant.

II.Physical examination:Last & final steps of the process of selection is the physical fitness test in Dhanhar Masala. The results of medical test is recorded in a statement preserved in the personnel records.

3) Human Resource PlanningMeaning of HRP: HRP is the process of forecasting a firms future demand for supply of the right types of people in the right number. HRP is also known as manpower planning, personnel planning or employment planning.


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Dhanhar Masala Pvt. Ltd. HRP is the process of getting the right number of qualified people into the right job at the right time. It is the system matching supply & demand of manpower.

Definition of HRP (Human Resource Planning):HRP includes the estimation of how many qualified people are necessary to carry out the assign activity, how many people will be available & what, if anything must be done to ensure that personnel demand at the appropriate point in the future. HRP translate the organizations objectives & plans into the number of workers needed to meet those objectives.

Time duration of HRP in Dhanhar Masala Short term plans ..1 year

Process of HRP in Dhanhar Masala

Organization objective & Policy


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Dhanhar Masala Pvt. Ltd.Hr need & supply forecast

HR programming

Evaluation & Control

Human resource planning process is important to making effective planning for personnel. The step taken by Dhanhar Masala is describing below, 1. First they analysis the organizational plan it means see deeply future plan of the various department or organization. Select the organizational objectives & policy and add work in HRP by employment. 2. Then after they forecast demand of manpower require in future they think which type of manpower demand is require is arise & which department and how much personnel is required. Then they find source of manpower & they also find how Hr need & supply forecast. 3. Once the demand is decided then they forecast the supply of the manpower it means best sources is available to recruit the employee. Then they match the demand & supply of manpower. Prof. V.B. Shah Institute of Management Page 55

Dhanhar Masala Pvt. Ltd.4.

Evaluation & control is the final phase of the HRP process. The HR plan should include budgets, targets & standards. It should also clarify responsibility implementation & control which will enable achievement to be monitored against the plan.

Surplus:- Reduced hours Shortage:- Recruitment

In this planning following points they take into consideration for its HR planning:

When HR need arises Which types of manpower are requires in future. Source of required manpower available for the organization in future. Is any diversification is done in the organization in short term or long term.

4. Training & DevelopmentMeaning of Training:Training is the process of increasing the knowledge & skills for doing a particular job. It is an organized procedure by which people learn knowledge & skills for a definite person. Training is any process by which the aptitude, skills & ability of employees to perform a specific job are increased. Training is essentially practical consisting of knowledge & skills are required to perform a specific task. Prof. V.B. Shah Institute of Management Page 56


Meaning of Development:Development is the process of developing the knowledge & skills in employees for doing a particular job. Development involves preparing the individual for a future job & growth of individual in all respects.

Training & Development:Employee training is distinct from management Development. Training is the short term process utilizing a systematic & organized procedure by which non managerial personnel learn technical knowledge & skills for a definite purpose. It refers to instruction in technical & mechanical operations like operating of a machine. It is design primary for the non-managers. It is for a short duration & for a specific job related purpose. On the other hand Development is the long term education process utilizing a systematic & organized procedure by which managerial personnel learn conceptually & theoretical knowledge for general purpose. It involves philosophical & theoretical education concept & it is design for managers it involves broader education its purpose is long term Development.

Training & development both are different in companys point of view,Training:

Contents: Technical & mechanical operation Participants: Non managerial personnel. Time period: short term short affairs. Page 57


Dhanhar Masala Pvt. Ltd. Purpose: specific job related skills. Initiative: From management, Internal promotion. Nature of the process: Reactive process, to meet current need. Development: Contents: Conceptual & philosophical operation Participants: managerial personnel. Time period: Long term Continuous process. Purpose: Total personality. Initiative: From individual himself, Internal promotion. Nature of the process: Proactive process, to meet future need.

Why training needs in Dhanhar Masala Pvt. Ltd.? There are three reasons to needs training in Dhanhar Masala, Which are bellow here, Job recruitment Technological changes Internal mobility

Training Methods:-

There are two methods for training but Dhanhar Masala can used more methods of the training, there are bellow here, Job Rotation Job Coaching Job instruction Training through step by step Committee assignment


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5) Promotion & Transfer PromotionMeaning of Promotion:Promotion means an improvement in pay pre-stage position & responsibility of an employee within his / her organization. A more shifting of an employee to a different job which has better working hour, better location & more pleasant working condition does not amount to promotion for the employee only where it carries increase responsibility & enhance pay.

Definition of promotion:-

A promotion is the transfer of an employee to a job which pay more money or some preference money. When an employee is assigned a higher level job with more pay & powers then its said to promote. Promotion may be temporary or permanent.

Factor affecting Promotion in Dhanhar Masala:1) Merit basis:Merit means an individuals efficiency & capacity as judge from past performance. Merits denote an individuals employees (skills, Knowledge, ability, efficiency & aptitude as measured from educational training & past employment records.) 2) Seniority bases:Prof. V.B. Shah Institute of Management Page 59

Dhanhar Masala Pvt. Ltd. Company also promotes the employee from seniority basis. Seniority systems are based on the length of the service & job experience.

Advantages of promotion in companys point of view: To put the worker in a position where he will be a greater work to the company & where he may derived incised personnel satisfaction & income from his work. To remove the worker from their job as an alternative to avoid the embarrassment of firing or demoting him. To fill up higher vacancies from within the organization. To recognized an individual performance & rewired him for his work. To increase the employees & organizational effectiveness. To recognizes an employees performance & loyalty & motivate him towards better performance. To promote job satisfaction among the employee & give them an opportunity for unbroken continuous services. To attract suitable & competent workers for the company. To develop a competitive spirit among the employee for acquiring knowledge & skills require by higher level job. To utilize more effectively the knowledge & skills of employees.

TransferMeaning of Transfer:Prof. V.B. Shah Institute of Management Page 60

Dhanhar Masala Pvt. Ltd. Transfer refers to a horizontal movement of an employee from one job to another in the same organization, Within any requisition change in responsibility, status & income. Transfer is regular or frequent, as in bank & other government work. In Dhanhar Masala transfer is used to place employees in position where they are likely to get more job satisfaction. A transfer to normally a change in job assignment. Transfer within the same department or across department.

Objectives of Transfer:There are six objectives of transfer into Dhanhar Masala. To meet organizational need To satisfy employee needs To better utilize employees To make the employee more versatile To adjust the workforce To provide relief Poor placement Level of training & development Nature of the work Growth opportunity

Factor affecting transfer:

6) Performance AppraisalMeaning of performance appraisal:Prof. V.B. Shah Institute of Management Page 61

Dhanhar Masala Pvt. Ltd. Performanc e appraisal is the process of obtaining, analyzing & recording information about the relative worth of an employee. performance appraisal & merits rating are used synonymously.

Definition of performance appraisal:According to Flippo, performance appraisal is the systematic, periodic & an imparting rating of an employees excellence in matters pertaining to his / her present job & potential for a better job. It is the process of obtaining, analyzing & recording information about the relative worth of an employee.

Advantages of performance appraisal of companys points of view;

To effect promotion based on competence & performance. To confirm the service of probationary employees upon the completion of the probation period satisfaction. To check training & development needs of employees. To decide upon the pay raise where regular scale have not fixed. To decide upon the pay raise where regular scale have not fixed. To let the employee know where they stand as far as there performance is concerned & to help them with constrictive criticism & guidance for the purpose of their development. To improve communication. Performance appraisal can used to determine whether human resource program such as selection, training & transfer have been effective or not. Page 62



Essential of performance appraisal system in Dhanhar Masala are bellow here,Clear objectives Standardization training Job relatedness Feedback & participation Individual differences Review & Appeal

Process of the Performance Appraisal in the Dhanhar Masala:

There are five types of the Performance Appraisal process uses in the Dhanhar Masala, which are below here:Establishing Performance Standards

Communicating the Standards

Measuring Performance

Comparing the Actual with the Standards

Discussing the Appraisal

Taking Corrective Action


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Safety Stander:Company follows safety ruse restricts. The company is constructed there plant in such a ways. That in a case of emergency the worker can be secured more then one way out are provide assembly point is in case of fire safety virulent can be implemented urgently as well as general returns, company provided for the worker hand glows, gumshoes, helmets, masks, to prevent from the masala reactive. Around the block more in emergency the firebridged and disaster management center telephone number are kept in such a way that can be contact errantly without loosing time first-aid box are kept in each section of the plan.

Record and System:As per the rules and regulation company has to maintain all the rerecord to person working in the factory. More ever company has to keep the record has per government reels and factory act. In all necessary firms as well as regarding safety company has get certain machine cheeked though government approval agency time to time related to safety rules and maintain its records.

Factory and office work of time:

The company must have to come timely and employee has to follow the rules made by the company and government. Employee not go outside the plant or site without the permission of his superior or authority. In the organization this rules touch every person who work in the firm.

Time Keeping:Shift timing


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Dhanhar Masala Pvt. Ltd. Dhanhar Masala Pvt. Ltd. Has only one shift that is day shift and time is: 9 a.m. to 8 p.m. Break: 12:30 to 1:30 p.m. lunch break

7. Wages and Salary Structure: About wages & Salary:Wages represent hourly rates of pay & Salary means monthly rate of pay, irrespective of the number of hours put in by the employee. Wages and Salaries are subject to annual profit. They differ from employee & depend upon the job nature, seniority & merit. Wages & Salary, both are part of Components of Remuneration. There are three policies of Wages, Minimum Wage Fair Wage Living Wage A minimum wage should provide for workers family, for his efficiency, for the education of his family, their medical care. Minimum Wage 3000 in the Dhanhar Masala Pvt. Ltd. Prof. V.B. Shah Institute of Management Page 65

Dhanhar Masala Pvt. Ltd. A Fair wage should provide for productivity of labour, place of industry in the economy of a country, prevailing rates of wages. Fair wage 4000 in the Dhanhar Masala. A living wage should provide for forms the basis for fixing minimum wage, capacity of the industry to pay. Living wage 6000 in Dhanhar Masala.

There are two methods of Wage payment, Which are uses in Dhanhar Masala: Methods DependedTime Wage Piece Wage Depended on the time Depended on the piece (unit)

Wages and Salaries structure in Dhanhar Masala Pvt. Ltd.:Companys wages and salaries are paid by incentives way and also called payment by result. Incentives are depend open the productivity of the employee.

Productivity workers1000 2000 3000 3500 4000 to to to to to 2000 3000 3500 4000 5000 unit unit unit unit unit

of Salaries3000 4000 4500 5000 6000

This is structure of paying salaries in the Dhanhar Masala. Prof. V.B. Shah Institute of Management Page 66


Dhanhar Masala Pvt. Ltd. also provide fringe benefit for such top employee these benefit are as follows.Provident fund Gratuity Medical care Hospitalization Accident relief Health and group insurance Canteen Uniform Recreation

8. Employee Welfare:Meaning of Employee Welfare:According to the Arthur James Todd, Employee Welfare means anything done for the comfort and improvement, intellectual or social of the employee over and above the wages paid, which is not a necessity of the industry. According to the Oxford dictionary employee welfare or labour welfare means the effort to make living for workmen.

Welfare Activities:Welfare activities means those activities which are do always in favor of employees. It means the special extra facilities given to employees from company. As it is Dhanhar Masala provides such kind of facilities to employee which are as follow, Provide good condition of equipment and also provide better environment for work Prof. V.B. Shah Institute of Management Page 67

Dhanhar Masala Pvt. Ltd. Company provides individual changing room, store room, rest room etc. First aid box provided to all department.

There are two types of welfare activities of the company Intra-mural Extra-mural

Intra-mural:-

This services are provided within the establishment. Those include washing & Bathing facilities, rest room, uniform, medical aid, recreation facilities.

Extra-mural:- These services are provided outside the

establishment. These include housing accommodation, transport, maturity benefit, sports field, holiday home, etc. Dhanhar Masala use only Intra-mural Welfare Services.

9. Human Resource Audit:About Human Resource Audit:Audit is an important test of managerial control of companys point of view. It involves examination and verification of accounts and records. Human resource audit implies critical examination and evaluation of policies, programs, procedure in the area of HR audit of the companys point of view. Prof. V.B. Shah Institute of Management Page 68


Advantages of HR audit in companys point of view.

1) To review the system of acquiring, development, allocating, and utilizing human resource in the organization. 2) To evaluate the extent to which line managers have implemented the policies and programs. 3) To identify shortcoming in the managers in the management of human resources. 4) To evaluate the human resource staff. 1. 2. 3. 4. 5. 6. 7. 8. Auditing human resource policies. Policy of the company Policy formulation Communication policy Consistency policy Auditing Human Resource Programs. Auditing of Human Resource. Companys Audit Report

Companys scope of HR audit are as follows.

10. Hierarchy Structure of Organization:HR Department Head


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Personal Manager

Personal Officer

Supervisor

Worker

Clerk

11. Absenteeism Rate:-

Peon

11. Absenteeism RateProf. V.B. Shah Institute of Management Page 70

Dhanhar Masala Pvt. Ltd. The absenteeism rate of Dhanhar Masala industry has decreased since last two years as seen from the records maintain by the industry. The absenteeism rate in the year 20012002 was around 7% which has now decreased to 4% in the year 2005-2006. This is due to the change in the interest and awareness of the employees working in the industry and development of the wage rates which is linking. Example: - The wages are on the basis of their work or their attendance. If any persons remain absent continuously for more than eight days without informing the company that person would be removed from the job.

Why absenteeism rate is decreased.

Absenteeism Rate is decreased compared to 2001-02 and 2005-06 because Dhanhar Masala gives extra benefit to workers. Like bonus, gift and etc. So, Absenteeism Rate is decreased about 3%.


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4. PRODUCTION DEPARTMENT

Activities of Production Department Process Layout / Product Layout Technology used Machinery Operation Stores Quality Control Plant LocationProf. V.B. Shah Institute of Management Page 72


Structure of Production Department Head of Production Department

Production Manager

Assistant

Worker

IntroductionMeaning of Production:Production is the process of converting the raw material and for the other input the product for further Prof. V.B. Shah Institute of Management Page 73

Dhanhar Masala Pvt. Ltd. production of the finished goods or services so that utility of input is created or enhanced and the need of customer are satisfied. Example: - Consumer goods, industrial goods, Services of transport, Medical treatment, Education, Insurance, Banking etc.

Definition of Production Management: Production Management means creating and maintaining environment in which individual working together in group willingly contribute their best to produce to satisfy the goods and services by optimum utilization of raw material and other input so as to timely satisfy the need of customers.

Activity of Production DepartmentProduction Management includes all the right from the procuring of raw material and other inputs to their conversion into marketing output.

There are various activities of the production department in the Dhanhar Masala, Which are below here in short.1. Product Selection and Design 2. Process Selection and Planning 3. Location of Plant and Facilities 4. Material Handling 5. Capacity of Planning 6. Production Planning and Control 7. Purchasing and Inventory Control 8. Quality Control 9. Maintenance and Replacement of Machinery 10.Cost Reduction and Control 11.Incentives and Extra Benefits Prof. V.B. Shah Institute of Management Page 74

Dhanhar Masala Pvt. Ltd. So, there are different eleven types of activities of the production department in the Dhanhar Masala Pvt. Ltd.

2. Process Layout / Product Layout: Location of Plant: Plant location is mainly selection on those areas where the business should well establish for maximum utilize of economy and effectiveness. It is an important decision in long term. Location of plant is most important factor in a private sector. There are many factor are affected e.g. if the place was outside the city then they are free from paying octroi for their product, various taxes, labour transmission facilities, living home to the labour or employee like house, cottages etc., for the raw material storage facility to the certain extent to run production smoothly. When plant or site is located in near or in the city they have no expense to rent for the employee or labour house, available good infrastructure in compare to the far from the city area, less transport cost, easy distribution of goods in less time. Dhanhar Masala plant is located at no far from the city and not area near to the city. It is located in industrial zone of fulpada in this area they get benefits from the government and electricity, water, road, communication channels. Dhanhar Masala chooses this area because there are available enough raw material with proper quality & quantity. Easy distribution of their product & profitable to the industry. Prof. V.B. Shah Institute of Management Page 75

Dhanhar Masala Pvt. Ltd. They are not thinking for the changing the site. They want to buy or take on the lease new site near the old plant. The population is increasing day by day and residential area will come near the industrial area so that Dhanhar Masala more concentrate on environment not harmful to the their citizen. The company will think to establish new plant far from to the residential area.


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Production Department

Process Layout / Product Layout:Process layout / Product layout plant depend in 10 types of production department and the process layout / product layout are as follows.

Flow chart of manufacturing Masala

Plastic / billet Arrival Testing in Laboratory Charged in re-use Furnace capacity Intermediate WorkProf. V.B. Shah Institute of Management

Sent back to supplier

Cooling Room

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Cutting To length Inspection Storage & Dispatch


Plastic/Billet:Plastic/Billets is a one types of raw-materials. The plastic/billets they purchases in different places for the different item and he is delivery to the other places and cities, which are uses Masala. All the industries have too very big stock in plastic/billets.


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Reheating Furnace:Prof. V.B. Shah Institute of Management Page 79

Dhanhar Masala Pvt. Ltd. Reheating furnace means return to plastics and furnace. The company foremen or worker supplied for the plastics and billets to the furnace. The cranes carry to the plastics and billets goes to the put the conveyer belt, so conveyer belt pick up the plastics and billets goes to the reheating furnace. So plastics and billets go to the roughing mill.


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Intermediate Work:Prof. V.B. Shah Institute of Management Page 81

Dhanhar Masala Pvt. Ltd. Intermediate mill always work in roughing mill work finished. Actually intermediate mill means the joint for the plastics and billets. Intermediate mill the worker hand a one Masala packaging and he was push the out of roughing mill stock and supplied in intermediate mill and the intermediate mill joint the packaging and fixed cuts. So intermediate mill means a one types of joint the packaging. The intermediate mill is a very high degree temperature. So, worker very carefully works in intermediate mill.


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Finishing Work:Finishing mill means the finished the Masala Packaging. The Industry is always very carefully to the finished for the packaging. The Industry always demands in the market and he was not rough product for the customer. So, Industry is always very carefully for the finishing mill and the Prof. V.B. Shah Institute of Management Page 83

Dhanhar Masala Pvt. Ltd. different product for other Masalas Industry / companies. Finishing mill is always in the very carefully work for the Masala packaging.

Cooling Room:Prof. V.B. Shah Institute of Management Page 84

Dhanhar Masala Pvt. Ltd. Cooling bed means cool the Masala packages. Sometimes the package produce in very large number so Industry cooling room also facilities provide for the factory. Cooling room work only the cool the packages. The cooling room very long and very big many workers work on the cooling room. The workers pick up the Masala packages and put the cooling room.


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Inspection:Inspection means a one types of checking for the packages. The Industry checks the packages a briefly. The Prof. V.B. Shah Institute of Management Page 86

Dhanhar Masala Pvt. Ltd. manager is only view to the checking of packages. The Industries have one manager appointment to the check of packages. The manager is checks the packages after goes to the packages in the storage & dispatch. Inspection plan is fully automatically. The foremen provide to the machinery and check the packages and the machinery provide document about in packages how many unpolluted. These facilities also provide the companies for his customer.


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Storage & Dispatch:Storage & dispatch means the store the Masalas packages and transporting to the packages. Storage means the companies store the packages and the customer gives the order for the different item of the masala. So, Dhanhar Masala calls to the transporter and gives the dispatch for the packages. Any times the Industry gives self delivery for the product. So the very big place for the storage & dispatch and Industry also selected worker for the storage & dispatch.


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3. Technology used:Technology is play very important role of the any Industry and Company. Dhanhar Masala used latest technology in the Prof. V.B. Shah Institute of Management Page 89

Dhanhar Masala Pvt. Ltd. factory to produce the different types of Masala and display in the market of whole Gujarat and its selling & result is nice for the Dhanhar Masala. So, Dhanhar Masala used INPACK FABRICATION PVT. LTD. technology. Dhanhar Masala used many other machines and technology which are below here:

Dhanhar Masala used;

High speed servo Driven Auger Filter(With Rexroth Bosch System) High speed Volumetric Viscous Filler to pack oils Servo Driven Auger Filler(With Siemens System) Volumetric Cup Filling(to pack free flowing Granules) So, Dhanhar Masala uses these four types of machines of the

INPACK FABRICATION PVT. LTD.


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Company uses modern machines and techniques to maximize their production and to minimize the waste. Company uses only Indian Machines.

4. Plant Location, Controls of R.M. in Progress & Finished goods:Location:Plant location is mainly selection on those areas where the business should well establish utilize of economy and effectiveness. It is an important decision in long term. Prof. V.B. Shah Institute of Management Page 92

Dhanhar Masala Pvt. Ltd. Location of plant is most important factor in a private sector. There are many factors are affected e.g. if the place was outside the city then they are free from paying octroi for their product, various taxes, labour transmission facilities, living home to the labour or employee like houses, cottages etc., for the raw material storage facility to the certain extent to run production smoothly. When plant or site is located in near or in the city they have no expense to rent for the employee or labour houses, available good infrastructure in compare to the far from the city area, less transportation cost, easy distribution of goods in less time. Dhanhar Masala plant is located at no far from the city and not near to the city. It is located in industrial zone of Surat at A.K. Road. In this area they get benefits from the government and electricity, water, roads, communication, channels. Dhanhar Masala choose this area because there are available enough raw material with proper quality & quantity. It is easy distribution of their product & profitable to the Industry. They are not thinking for the changing the site. They want to buy or take on the lease new site near the old plant. The population is increasing day by day and residential area will come near to the industrial area so that Industry more concentrate on environment not harmful to the their citizen. Dhanhar Masala will think to establish new plant far from to the residential area.

Raw Material:Dhanhar Masala uses the raw material to make a product like plastic/billets. Every product has a different raw material. Dhanhar Masala use raw material given below: Prof. V.B. Shah Institute of Management Page 93

Dhanhar Masala Pvt. Ltd. 1. Plastics / Billets 2. Different Masala raw material comes different places

Procuring the raw material:The need of raw material exist when Industry receives order from the customers. For that Industry makes contract or agreement with the suppliers of raw material. Contract may be duration for the one month or one year. Industry purchases the raw material in the local market. According to the agreement duration of contract, price of raw material, quality of raw material, and in some case quantity is also specifying, Partys name, and suppliers name mention in the contract. Raw-Materials are goods which have not yet been committed to production in a manufacturing firm. They may consist of basic raw materials or finished components, in many cases of finished goods of one Industry becomes the raw materials of another Industry. E.g.:- The finished goods of Dhanhar Masala are the Masala, which becomes the raw material from different places for different Masala. All the plastics Raw-material comes from the Bombay Rock Salts Raw-material comes from the Pakistan(Lahore) Hings Raw-material comes from the Afghanistan(Iran) So, Different types of Raw-material are uses in the Dhanhar Masala and it comes to many far and different places.

Finish Goods:After come raw materials for different types of masala, then work in progress to the end of finished goods. Finished Goods are completed products awaiting sale. Finished Prof. V.B. Shah Institute of Management Page 94

Dhanhar Masala Pvt. Ltd. Goods are the final output of the production different kinds of inventories depend upon the nature of the business. E.g.:- Dhanhar Masala will have high levels of all the three kinds of inventory, while a retailer or wholesaler will have high level of inventories of finished goods only.

Inventory ControlDefinition of Inventory Control:Inventory control means the decision of the firm is to the extent to which inventory can be economically stored.

Inventory Control:Dhanhar Masala Industry they are not able to engage large amount of money in stock. So, industries plant manager has to handle the inventory of raw material, semi-finished goods etc. There is no such type of different department to manage the inventory. According to the manager who handle the inventory, in early stage there were no speedy transportation and communication so they have to consider the lead time for the raw material required thats why the company need to maintain inventory of raw material and finished goods or semi-finished goods. Today there is a greatest change in the IT sector, transport facility etc. so, there is less need to maintain inventory. Now the raw material is available in the same place or near by place, in case raw material purchased from outside the other city then it is available in one or two days. So, there are fewer burdens to bring the stocks. Dhanhar Masala Industry maintain stock for the safety purpose so production runs in a smooth way. The stock keeps for the using it crisis time. So, production not stop. Prof. V.B. Shah Institute of Management Page 95


5. Quality ControlAbout Quality:Quality refers to the sum of attributes or properties that describe a product. These are generally expressed in term of specific product characteristics such as length, width, colour, etc. these characteristics must be quantitatively expressed in terms that can be objectively measured or observed.

About Quality Control:Quality Control refers to those activities used to refers to a specific organisation within the industrial enterprise which is assigned responsibility for many of the activities necessary to achieve quality objective. Methods of Quality Control, which are uses in the Dhanhar Masala. There are four method uses, which are given below:1. Inspection 2. Quality Circles 3. Total Quality Management (TQM) 4. Statistical Quality Control (SQC) Most of use Inspection and Statistical Quality Control by Dhanhar Masala in the factory.

Quality Control:Customers of any industry first take care and try to know about the quality of the product. It happens in this industry also. Prof. V.B. Shah Institute of Management Page 96

Dhanhar Masala Pvt. Ltd. The industry produces a product as per the customer requirement and the standard given by the customer. For quality control company takes sample in each and every stage of production and check the quality of given order. These samples send to the customers and if they approved the sample then and only then the order being processed. Quality check in the Industries own laboratory which is located in their plant. Laboratory is located in the plant so it comfortable to test and transport the sample. If customer reject the sample then second time process is being with improvement and with care of consider the requirement of customer. Then it sends to the customer again. In present time quality control has been one of the most important factor to boost the product in the competitive market. Every stage quality checking, reaction testing becomes an important factor. Just starting the batch from the first reaction time to time testing is carried out in between the process quality control and check is containing carried until the product comes out into the final form especially in dye stuff. Certain quality parameters are important like solubility of materials, insoluble particles of material, isomers, so contained other foreign particles transparency of the material and strength of the material.

5. FINANCE DEPARTMENTProf. V.B. Shah Institute of Management Page 97


Budgeting & Planning Taking Loans (Sources of funds) Issuing Shares (If Applicable) Providing funds to Different Department Balance Sheet & Annual General Report Working Capital, Cash, Inventories, Receivable etc.Prof. V.B. Shah Institute of Management Page 98


Head of Finance HiteshBhai Wankawala

IntroductionA firm needs to manage its resources effectively and efficiency to achieve its objectives. The managing of resources in an effective manner is possible only when the management work out the future courses of action in advance and takes decision in a professional manner. Financial Planning should estimated the resources required to carry out operations and determine how far these resources can be generated internally by the firm itself and how far they will have to be obtained externally.

Organization Structure of Finance Department:Chairman Directors General Manager AccountantProf. V.B. Shah Institute of Management

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Cashier Clerk

Accounting Policies: Methods of accounting: The company follows mercantile systems of accounting as mentioned in the companies act, 1956. Fixed assets: All fixed assets are recorded at cost of acquisition including installation cost wherever applicable excluding motivate amount. Depreciation: It is being provided accounting to the companies act 1956 considering written down value method using single shift working in respect of plant and machinery. In respect of other assets depreciation is provided according to rates prescribed in schedule IV of the companys act 1956 in case of addition during the year. Depreciation is provided of the prorate basis. Inventories: Inventories are valued at the cost or net realizable value whichever is lower. Income and expenses recognition: Income and expenses are accounted for an accrual basis. Miscellaneous expenditure: Miscellaneous expenses are amortized over a period of 10 year.


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1. Budgeting and Planning

Definition of Capital Budgeting:Capital Budgeting may be defined as decision making process by which an organisation evaluates the major investment proposals keeping due consideration for the, Prof. V.B. Shah Institute of Management Page 101

Dhanhar Masala Pvt. Ltd. Amount needed for Investment Amount available for Investment Amount that can be acquired from different sources The cost of raising funds Future cash Inflows

Types of Capital Budgeting in the Dhanhar masala:1. Introduction of a New Product 2. Changing in Method of Production 3. Replacement 4. Business Expansion 5. Substitution of Machinery for Labour

Definition of Financial Planning:Financial Planning is primarily a statement estimating the amount of capital and determining its composition. It includes, 1. The development of the form and proportionate amounts of securities. 2. Develop the best plan to obtain the require fund. 3. Analyse control points which need to be established. 4. Estimated the requirement of financial resources in time with its operating programme. 5. Established control points which need to be established.

Advantages of Financial Planning in Dhanhar Masala:Economical procurement and profitable use of funds Elimination of Waste Prof. V.B. Shah Institute of Management Page 102

Dhanhar Masala Pvt. Ltd. To maintain Effective Control Modern business is very complex. Financial Planning helps management to avoid waste which possible by maintain close co-ordination between various functions of the firm. Financial Planning provides broad guidelines for procurement, allocation and distribution of fund. Control can be exercised in an effective manner when actual are compared against these guidelines. In the Dhanhar Masala Financial Planning is very strong. Finance position level is maintained for the future.

Factor affecting for the Financial Planning in the Dhanhar Masala: Nature of business Attitude of the Management Alternative sources of finance

Steps in Financial Planning, which are taken by the Dhanhar Masala: Review and Analysis of past performance Establishing objectives Financing Consequences of Financial Plans

2. Taking loans (Sources of funds)Dhanhar Masala requires and uses Short Term Capital for running the business. Short term capital of finance its working capital requirements. Dhanhar Masala taking no loans by any Industrial bank. Prof. V.B. Shah Institute of Management Page 103


Dhanhar Masala use only Retained Earnings in the business firm.Depreciation charges and retained earnings represent the internal sources of finance available to the Industry. If the depreciation charges are used for replacing worn-out equipment, Retain Earning growth the only internal sources for financing expansion and growth. Industrial normally retain 30% can to 60% of profit after tax for financing growth.

Advantages of the Retained Earning in the Dhanhar Masala:1. Retained Earnings are readily available internally. They do not require taking to outside. 2. Retained Earnings effectively represent effect of additional equity in the firm. 3. There is no transfer of control when a firm relies on retained earnings. 4. The capital appreciation that arises as a sequel to retained earnings is subject to a lower tax rate. 5. Reinvestment of profit may be convenient for many shareholders as it relieves them to some extent of the problem of investing on their own.

3. Issuing SharesDhanhar Masala has no Issuing Shares and no applicable shares. Prof. V.B. Shah Institute of Management Page 104


4. Providing funds to Different DepartmentDhanhar Masala industry providing funds to different departments in their budgeting programme. 8% for Marketing Department 31% for Capital Budgeting 3% for Employment Welfare 58% for Wages & Salary

5. Balance Sheet & Annual General Report


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6. Working CapitalWorking Capital of a company is like the blood to human body. It is the most vital ingredient of a business. Working Capital management if carried out effectively, efficiently and consistently will assure the health of an organization.

Meaning:Working Capital is defined as the excess of current assets over current liabilities. Current assets are those assets which will be converted into cash within current accounting period or within the next year as a result of ordinary operation of the business. They are cash or near cash resources. This include, Cash and bank balance Receivables Inventory Raw material, stores and spares Work in progress Finished goods Prepaid expenses Short term advances Temporary investment The value represented by these assets circulates among several expenses. Cash is used to buy raw material, to pay wages and to meet other manufacturing expenses. Finished goods are produced. These are held as inventories. When these are sold account receivables brings cash into the firm. The cycle starts again. This is shown in the following diagram. Prof. V.B. Shah Institute of Management Page 106


Cash InventoriesCirculation of Current Assets:Current liabilities are the debts of the firms that have to be paid during the current accounting period or within a year. These include, Creditors for goods purchases Outstanding expenses Short term borrowings Advances received against sales Taxes and dividend payable Other liabilities maturing within a year

Operating Cycle:Formula to calculate Operating Cycle is,

Operating Cycle = R+W+F+D-C

Raw material storage period:R = Average stock of raw material Average raw material consumption per day = 15 days

Finished goods storage period:

F = Average finished stock inventory Average cost of goods sold Prof. V.B. Shah Institute of Management Page 107

Dhanhar Masala Pvt. Ltd. = 1 days

Debtors collection period:D = Average debtors Average credit sales per day = 36 days

Creditors payment period:C = Average creditors Average credit purchase per day = 20 days Operating Cycle = R+F+D-C = 32 Days

Internal Audit Policies:Internal audit system is very important for any industry. By the audit, management can know where the company stands. This is the best way to control and remove deices. Management can also easily know whether they are earning profit or incurring loss. The balance sheet and profit and loss a/c of Dhanhar Masala is audited every year at the end of the march. An audit of Dhanhar Masala is conducted in accordance with auditing standards generally accepted in India. Audit is planned and performed to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit include examining on test basis evidence supporting the amount and disclosure in the financial statement. An audit above includes assessing the accounting principles used significant estimating made by the management as well as evaluating the overall financial statement presentation. Here auditing is done half yearly. Prof. V.B. Shah Institute of Management Page 108

Dhanhar Masala Pvt. Ltd. The balance sheet and profit and loss a/c of company with the accounting standards referred to in subsection 3-C of section 211 of the companies act 1956.

Types of Payment to auditorAudit Fees Tax Audit Fees Other Matters Services Tax

Amount (Rs.)15000 5000 5000 1250

Methods of calculating Depreciation:In Dhanhar Masala depreciation is being provided according to the companies act 1956 considering written down value method using single working in respect of plant and machineries. For other assets depreciation is provided according to rates prescribed in schedule VI of companys act 1956. In case of addition during the year depreciation is provided on prorate basis

CashMeaning of Cash:Prof. V.B. Shah Institute of Management Page 109

Dhanhar Masala Pvt. Ltd. As Sydney Robbins, A business wants to get hold of in the shortage possible time, but to keep the least possible quantity on hand. On the other hand, If the organization is always running with shortage of cash, its trading and manufacturing operations will be disrupted and ultimately profitability of the firm will be affected.

Cash Management Involves the following four factors:1. Ascertainment of the minimum cash balance and controlling the levels of cash. 2. Controlling cash inflows 3. Controlling cash outflows 4. Optimum investment of surplus cash

There are four level of the cash controlling, which is below here:1. 2. 3. 4. Preparing cash Budget Providing for contingencies Consideration of cost of shortage of cash Availability of other sources of funds

Cash BudgetMeaning of cash Budget:-


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Dhanhar Masala Pvt. Ltd. Cash Budget is a, statement cash inflows and cash outflows for a

showing the estimated particular period.

On the other hand, Cash Budget is a plan showing c

dhanhar masala

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