Stenu Johny AVT OS

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AVT NATURAL PRODUCTS LIMITED LIMITED

INTRODUCTION

Organization is a harmonious adjustment of specialized parts for the accomplishment of some common objectives. The objectives are laid down as when an organization is start. Various factor like manpower, money, machinery, capital management etc. are grouped together to form an organization and to achieve the goals of the organization. Organization study is the systematic study on the working of overall organization, it involves study of various departments, manpower, department function and process flow of each department. It aims to familiarize the students with the nature and functioning of organization in the “real word”. It provides students the opportunity to know, observe, learn, collect and analyze the nature, vision objectives and functioning of an organization. It helps us to study how to apply our theoretical knowledge in an organization. This organizational study is an attempt to know about the organization, named AVT Natural Products Ltd., its departments and their functions. AVT Natural Products Ltd (AVT NPL) is a public limited company located at South Vazhakulam. It operates in the segment of oleoresins/extract color and flavors. AVT Natural Products Ltd (AVT NPL) is a public limited company promoted by Mr. Ajit Thomas as a strategic diversification from the traditional plantation business of AV Thomas Group. AV Thomas group came into existence in 1925, AVT Natural Product Limited, which is based at Cochin, on the largest contracts farming in India. Recently the company is diversified its products into the production of spices, oleoresins, essential oils, natural food color and natural extract for the global food ingredients market. AVT natural products Ltd operates in the segment of oleoresins/extract color and flavors. The company has highly advanced facility in-house to develop superior quality planting materials.

JAI BHARATH SCHOOL OF MANAGEMENT STUDIES

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India is one of the largest producer, consumer and exporter of spice in the world. Although spices are exported in majority of forms, the major shares consists of raw and bulk form. India has a dominant position in the worlds spice industry with substantial production and availability in wide range. India produces over 2 million tons of spice annually. In the past the export was in raw for but by the mid eighties more importance is given to the value added forms. Now India offers a large variety of value added, ready to cook consumer pack products like blended spices, spice oil oleoresins, curry mixes and natural food colors.

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1.1

SIGNIFICANCE OF THE STUDY

Organization is an inevitable part of business & management. Therefore study on organizational structure, management process, functions etc. are very significant. The study is very important for knowing the following. 

To have an idea about the organization named AVT NPL.



To have an idea about the products.



To have an idea about the organizational structure of the company.



To have an idea about the departmental functions of the company.



To have an idea about the financial position of the company.

1.2

OBJECTIVES OF THE STUDY



To familiarizes with the organization.



To study about the functions of various departments in the organization.



To know how the theoretical knowledge and practical knowledge go together in order to achieve organizational goal.



To know how decision making is done in various departments.



To analyzes the strength, weakness, opportunities and threats of the company.

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1.3

METHODOLOGY OF THE STUDY

Data Collection

The data forms the fundamental basis of any study. So collection of data is of great importance. There are several ways of collecting the appropriate data. The sources of data collection is classified in to two, those are, primary data and secondary data

Primary Data :

The primary data are those which are collected for the first time directly from the source and thus happen to be original in character. Primary data are collected through direct interview, questionnaire, schedules, interaction and observation. It was collected through observation of the firm.

Secondary Data :

The secondary data are those which have already been collected by someone and which have already been passed through some statistical process. Secondary data are collected from magazines, journals, annual report and internet.

The study employed the method of observation to collect the required data for completion of this report. Discussion and interviews with

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1.4 PERIOD OF STUDY The study was carried out for a period from May 2

nd

st

2014 to May 31

2014.

1.5



LIMITATIONS OF THE STUDY

The busy schedule of the department heads restricted collection of detailed information.



Confidential data are not exposed at certain time.



In deep study of each and every department in the organization is not possible.



To understand an organizational and its working, the period of 30days is not at all enough .so time was the most important limiting factor in the study.

1.6

SCOPE OF THE STUDY

The study intended to attain a firsthand experience of the overall running of an organization. It helps to understand the working conditions of the organization; it‟s financial and market position. A detailed analysis of each of the activities performed by the departments is beyond the scope o f the study. It provides a chance to see practical constraints faced by the managers while putting theory in to practice.





















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INDUSTRY PROFILE

The story of Indian spices dates back to 7000 years into the past. India is known as the “home of spices” because there is no other country in the world which produces as much kind of spices in India. The climate of the country is also suitable for almost all spices. The history and culture of Indian spice is probably as old as human civilization itself.

According to International organization for standardization (ISO) the term “spice and condiments” are applies to natural plant for vegetable products or mixture thereof in whole as ground form, as are used for importing flavor aroma and for seasoning of goods. Spices constitute important group agriculture commodities, which are virtually indispensible in the country art. For India spices are important commercial crop of the point of view of both domestic and consumption and export. Besides, huge quantities of spices are also being consumed within the country for flavoring foods and also used in medicine, pharmaceutical, perfumery, cosmetics and several other industries.

There are several spices grown in different parts of the world and around 50 species are grown in India. Major spices of export are pepper, cumin, cardamom, ginger, turmeric and chilies. Among the spices exported pepper has the leading position in terms of both quality and value realized. The Aleppey Green Cardamom is considered as the best grade available in the world. Today the Indian spices hold the same spell. Within the past one decade then international trade in spice has grown by leaps and bond. An estimated 500000 tones of spices and herbs having value of 1500 million US dollars are new imported























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The Indian export of spices has crossed the 450 million US dollars mark during 1999-2000 and has reached 468 million US dollar. India‟s exports of spice extract have shown spectacular growth attaining over 50% of the global market within a short span. Over the past decade, the Indian spice industry has made quality, the cutting edge of its global game plan. From the traditional commodity exports, Indian spices have evolved into a state of art industry by absorbing technology developing value added products identifying niche markets. The spice board of India (Ministry of commerce, government of India) is apex catalyst of these dramatic transactions. The board has been with the Indian spices industry the board plays a far reaching and influential role as developmental, regulatory and promotional agency for Indian spices.

2.1

INTERNATIONAL SCENARIO

Spice

trading

has

always

major

economic

importance through the human history. The international trade in various forms of spice has grown tremendously in the last decade. According to an estimate, 85% of the international trade in spice is dried and is used after cleaning but without future processing. Pepper is one of the most valuable valuab le spices sp ices in the globe trade. Countries






















Some species also possess strong anti-biotic activities. Many of them possess medical properties and have a profound effect of human health since they affect many functional possess. For instances, spice intensify salivary flow. They clean thee oral cavity from food adhesion and bacteria.

2.1.2 Export

Export of spice oil and oleoresin and India has been increasing every year. Spice oil and oleoresin are exported to about 18 developed countries in the world. It may be noted that the share of oil and oleoresin in total earnings from spice export from India is increasing. USA is the major importer of oil and oleoresin from India accounting total exports. UK, Canada, Switzerland, Japan, Singapore, Netherlands, Spain and Israel are some of the importers of spice oil and oleoresin o leoresin from India.

2.1.3 Import

Though Indian manufacture of spice oil and oleoresins

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2.1.4 Market Outlook

In all developed countries, there is a powerful lobbying against all synthetic food colors and flavors since it may cause health problems. Since the quality of essential oil being subjective, there should be a direct contact between buyer and seller for fixing quality standards. In

small

markets,

producers

deal

directly

with

flavor/perfumery house, agent, actual users etc. The recent development in spice oil production is the microencapsulated spice oil and oleoresins, sterilization oil were a problem. Bacterial contamination has emerged as a serious problem since radiation was not allowed. Microencapsulating of the oil remains the same throughout a long period. By encapsulation of oils we we can almost up to the the mark of British oils in quality we have to go to a long way in improving packaging and overall presentation of the product. In the UK, Indian foods are becoming more and more popular. This means that the demand for spice and spice product may go up in the coming years. Of late there has been new development in the cola industry cardamom colors, which is made by incorporating cardamom oils. The particulars have a






















2.2

NATIONAL SCENARIO

2.2.1 India's Share in the Global Spice Market

Spice derivative can he categorized into spice oil oleoresin and essential oils. The demand for spice derivative is also increasing due to the hygiene, Standardization and consistency factors. India contributes nearly 70% to the world spice derivative market. It exports to USA, UK, etc. Indian southern states including Kerala, Karnataka and Tamil Nadu provide concentrated oils and oleoresins focus in perfumery, pharmaceuticals, food processing and chemical industry.

Key Industry trend



There has been a substantial increase in use of fresh herbs and spices owing to an increased demand in the hotel industry.



Change of consumer towards lending a healthy lifestyle has increased the use of herbs/natural spice for natural flavoring.



Use of spice derivatives like essential oils are being widely used

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2.2.2 Indian Spice Industry

India has traditionally been known for its spice and cutlery herb for production. It is the largest spice producing and consuming country. Its strategic location, climate condition, advanced production process and availability of cheap labors make it advantage for the producers to ensure large scale production of quality spices and herbs. The booming global spice markets possess good opportunity for the Indian spice industry to provide quality spices at competitive prices.

India faces big competition from China, Malaysia and Pakistan in terms of pricing of the product. Manufactures should therefore ensure consistency in supply, product quality, pricing and marketing strategy to increase the share in export. Producers are incorporating latest methods and technologies to ensure higher quality of spice and herbs. India is one of the prime exports of pepper, chilies turmeric, seed spice and spice derivatives to the rest of the world. USA, EU, Japan and Sri Lanka import their Indian spice in large volumes.

Technology

Spice oils are usually extracted by steam distillation

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SCFE system is a modem technology of making oils or through carbon dioxide processing. The system provides a modem cost effective technology for value addition in processing for various commodities like spices. SCFE is a two step process, while use carbon dioxide at the solvent above its critical pressure and temperature for extraction of various natural materials. This technology is preferred worldwide for commercial extraction because of offers. Production

There are about 24 companies engaged in producing spice oil and oleoresins. Most of them are located in Kerala. The total production of theses ranges ranges from from 2500 2500 to 3000 3000 tons tons per per year. The t otal annual installe d cap acity of these firms is about 4000tonnes. Several manufactures are now expanding tins p

product line to include more spice or production at full ca acity and this current






















Applications of spices and derivatives



Food Flavouring



Food Preservation



Personal Hygiene Products



Aromatherapy



Feeds



Pharmaceuticals



Industrial Chemicals



Beverages

Major Spices Exported



Chilly

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2.3

COMPANY PROFILE

2.3.1 History

The seeds of AV Thomas group o f companies were planted when Mr. AV Thomas purchased grass land in a place named Pasuparai in Tamil Na du in 19 25 an d pl an ne d te a sa pl in gs . On p ur ch a sin si n g th ei r es ta te Mr. Mr . AV Thomas floated various companies under his management. The company was AV Thomas and Company Limited. After this a number of companies were formed under his leadership in different locations in Kerala. This led him to the formation of an empire.

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As part of company‟s expansion plan, AVT NPL ventured in to the world of food safe natural flavor and colour production. This has become immensely successful and popular in the global food ingredients industry. The various certifications attained by them a bout their quality standards and food safety norms. 2.3.2 Location

Kerala is the land of spice plays a significant role in the global spices market. Spices are important commercial commercial crops from the point of view of both consumption and export market.

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In 1994 AVT Natural Products Limited, setup its second extraction unit at Vazhakulam near Aluva in Kerala. The AVT Group of companies after 85 years of i ts operation has presence in Indian agriagri bu sine si ne ss se ct or incl in cl ud in g pl an ta tion ti on s, ae ro pr oc es sing si ng , pl an t bi ot ec hn ol og y and natural food and food ingredients. AVT NPL is 100% export oriented unit located in Kochi, Kerala the spice capital of the world. AVT NPL is a member of AV Tho mas gro up of compa nies with interest interest in plantations, plantations, leather goods, goods, tissue culture and medical diagnostics. AVT NPL is one of the largest contract framing companies in India, with proven capabilities in back ba ckwa ward rd inte in tegra gra tion ti on.. Ther Th eree are ar e two tw o comp co mpan anie iess unde un derr the th e spic sp icee proj pr ojec ect, t, AVT NPL and AVT McCormick in 1994.
























BUSINESS PROFILE

The company is in business of „solvent extraction' comprising of marigold oleoresins, food/spice oleoresins and value added tea while marigold and tea operations are based on long, term supply agreements through strategic alliances spices oleoresins have a well diversified product

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Plant Location 

Mysore Trunk road, Puduvadavally, Sathyamangalam,



Harikura village, Honavally Hobi, Tritur Taluk, Tumkur District, Karnataka.



Vazhakulam, Marampally P.0, Aluva, Kerala.



Nayanapalli Cross, Bisibanepalli (via), Hindpur. AP.

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Agro Operations:

Agro operations include field extensions and commercial activities. The areas of operation include Sathyamangalam in Tamil Nadu, Hindupur in AP and Thiripur in Karnataka. The field extension activities include developing new farming area. The distribution of item for fanning through farmer service centre which have been set up in the major procurement area with an interest to provide better service to farmers.

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2.3.4 Mission, Vision, Values & Team

Mission

To be a Global Leader in Marigold Extracts through a fully integrated supply chain with excellence in Plant Science & Agriculture and Logistics Management. To achieve growth and stability in performance by diversifying to value

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Values

Constantly strive for value in whatever we do. Belief in ethical business and transparency. Encourage individual excellence and foster environment for team work. No short cuts & never sacrifice long term for short term. term. Know the business environment, product and customers well – update knowledge. Respect the neighborhood and individuality of each customer, supplier,

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2.3.5

AVT Group of Companies at a Glance

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Table 2.3.1 AVT Group of Companies No.

Unit

Year

Activity
























AVT Group – Business Business Units

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2.3.6

AVT Integrated Spice Project

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Major Areas of Business

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Organization Contribution to the Society Social Responsibilities

AVT Natural, as a part of its social responsibility identifies the needs of the neighbourhood and fulfils them completely. They support 30,000 small and marginal farmers with technology to improve their net farm returns and their livelihood. We respect ou r neighborhood and all our stakeholders. Eye Clinic: Around 40,000 school children were screened and, those who required vision correction were identified and given the n ecessary treatment. This was carried out by the doctors from ShankaraNetralaya in association with AVT Natural Products and Rotary Club,Sathyamangalam. Successful cleaning of weeds and waste materials from the Bhavani river banks and strengthening of the embankments to provide better irrigation facility to the farming community was carried out. Infrastructure of the approach roads to our facility was further rectified. Yearly financial assistance offered to the Panchayat for the Polio Eradication Programme.

Free weekly medical checkup and assistance provided to the rural community by doctors of AVT Natural Products at Sathyamangalam. AVT has offered numerous facilities in the education sector by providing basic amenities like computers, laboratory equipments etc. for the students of neighboring schools. Cash awards have been endowed on top ranking students in the final year

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4.6

ENGINEERING DEPARTMENT

Vice President Vice Operations

Senior Manager

Senior Executive

Supervisor

Technician





















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In Engineering department different units in three sections are h eaded de puty man ager engaging services services and report report to the Vice President. This department is divided into three sections based on the function namely Mechanical, Electrical and Utility.

 Mechanical Department

Mechanical section under take repairs and maintenance of all machine and also take care of preventive maintenance. Modification of existing machineries are allocating as per the requirements in pr od uc tion ti on

depa de pa rtme rt me nt .

Th e

prod pr od uc tion ti on

de pa rtme rt ment nt

issu is su es

Job

g

Requirements Form (JRF) on the basis of which the en ineering department initiates actions. There are 5 technicians and supervisors working in this department.

 Procedure of work:

Concerned

department

in

consultation with the engineering department give the job description. On the job description is prioritized after completion for is prepared and give to department. The format is called hot job order is prepared for wor k than tha n can 't be undertaken undertaken under the the factory factory premises premises are given given to external external agencies.





















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 Electrical Department

Electrical department utilizes power from KSEB through 11 KV Substation. Two 350KV AVG/ADO sets are used when KSEB supply is not available. This department is also undertake routine maintenance of electrical circuit equipments like LAN

cabling,

EPABX

cabling

etc.

in

addition

to

preventive

maintenanc maintenancee to avoid break down . They

also

undertake

various

energy

utilization studies to ensure optimum usage of power. This includes pow p ow er su p pl y c a li b ra ti o n of al l m a c hi n es operating equipments in the cooling tower and chilling unit. In certain situation energy shortage time the KSEB do not provide supply due to peak time requirements. So in these situations diesel generators are used. Diesel is obtained from Indian Oil Corporation on monthly basis. Diesel is stored in underground tank. This dep artmen art men t prevents prevents break down and interrupti interruption on to production. production.





















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 Utilities Department

Utility department consist of four first class boil bo iler er op erato era tors rs in this th is staff sta ff cat egor eg ory y aid ai d fou r techn te chn ici ans. an s. This Thi s department is mainly responsible for generation of steam under pressure. There are two boilers of tones capacity for each. This steam conveyed through insulated pipeline for production. This department is also responsible for production of the effluent treatment plant, process and distilling of water is treated as per pollution control system. The effluent treatment plant consists of collection tank, safe tank, an aerator tank and clarifier. The waste water is properly treat before let out monthly return pertaining to water consumption consump tion and analysis, report of raw materials and treated effluent are sent to the pollution control board. boa rd. The water wate r treatme tr eatment nt plant is set up for the propertie prop ertiess of water used for various purposes. Water is obtained from the nearby pond and is pumped to the collection tank. From the collection tank the water passed through the sand filter and the softener, this water is used for all domestic purpose in the plant plan t and office.























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4.7

QUALITY CONTROL & ASSURANCE DEPARTMENT

General Manager QA& QC

Manager

Assistant Manager

Executive

Chemist





















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The department is responsible for quality control of production from g

purcha pur chase se to finishe fin ishe d goods. good s. This facilitates facili tates to get a ood image in the market. They used international standard tests pungency solvent reside pesticides reduce and colour value. Advance equipment like HPPC, GC and spectrophometers are used for total commitment to quality, safety extensive quality system and processing operations. The most modern analytical lab closely monitors quality tests for Aflotoxin PPB (Parts per Billion) level. HPCC gas chromatograph and spectrometer

fully

fledged

instrumentation

for

physical,

chemical,

microbiological and micro sanitary, standard analytical procedure conformed to ASTA/OAC/EWISO guidelines.

Major Quality Assurance Policy  HACPP- Hazard Analysis 84 Critical Point Policies

 Delivering constant and high quality natural plant ex tract,  Meeting and exceeding the customer expectation.  Ensure safe product by implementing good manufacturing practice right





















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 Glass Policies

AVT NPL is a natural production processing industry manufacturing spice oleoresins, food flavour, natural antioxidants etc. AVT ICPL is committed to avoid production contamination due to breakage of glass by;  Preventing any unauthorized glass usage. g

classification of glass used in the processin and non-processing non-processing  Ensuring classification area into four groups based crystals and how essential for processing by ensuring adequate safeguard to address food safety.  Progressively moving towards reduction in processing area.





















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4.8

PURCHASE DEPARTMENT

Vice President Operation

General Manager Purchase

Manager Procurement

Manager Purchase





















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The purchase department in the AVT NPL is headed by GM Purchase and assist by managers. The department ensures that it intense and use the best of materials appropriate to the needs. The department has two sections;

 Purchase

 Procurement

Purchase Department

Purchase

department

takes

care

of

all

the

capital

pur chas ch ases es whi ch incl in clud udee mach ma chin iner ery, y, spar sp aree parts pa rts,, coils co ils and an d lubri lu brica cants nts , chemicals and stationary materials. The department does not handle raw material procurement.  The Purchase Process As Follows:  The store department has to send the material indent to the procurement

department.























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Procurement Department

This department takes care of consistent and on time supply of raw materials as per the requirements of production and planning department. To develop raw supplier and new source of raw material to get the cost advantage to the organization the department ensures that vendor and evaluated to maintain the quality of the raw material being supplied by them. The GM Procurement is responsible in ensuring evaluation and approval of vendor for the raw materials. The approved vendors are monitored by the message for the supply of raw materials made by them.






















SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the strength, weakness, opportunities, and threats involved in a project and identifying the internal and external factors that are favorable and unfavorable for achieving that objective. The technique is created to „Albert Humphery‟ Humphery‟ who led a research project at Sanford University in the 1960‟s and 1970‟s using using data from 500 companies. SWOT analysis is undertaken to understand the firm‟s external and internal environments. A conscious identification of the relevant environment enables an organization to focus its attention on these factors which are intimately related to its mission, objective and strategies.

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 WEAKNESS

 No direct connection with end consumers.  Common people have less awareness about Oleoresin.  There is no domestic market for Oleoresins.

 OPPORTUNITIES

 Growing demand for natural products.  Chances for diversification.  Establishing market all over the world.  Chances for the domestic market operations.

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FINDINGS & SUGGESTIONS

6.1 OBSERVATION

 The HR department here brings in a new name for the company -home,

where family members work happily, hand which brings in union and strength to home as such.  The plant potential, modem technology, quality control methods and

policies make the customer a happy man.  Surroundings are very clean and attractive.





















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6.3 SUGGESTIONS  AVT should have written customer service policy which communicated

internally and externally.  Review quality testing and reduce lead time for release.  Reduce new product development time.  AVT should look up the option of setting up of regional distribution

centre in Europe will help to reduce the lead time and increase service level for customers market.  The company should measure the customer's satisfaction level.  Improve infrastructure facilities.  Suggestions

should

be

obtained

from

employees

for

future























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CONCLUSION

The AVT group of companies after 85 years of operation has significant presence in India's agribusiness sector including plantations, agro processing, and plant bio- technology natural fo od ingr in gred ed ient ie nt s. Th e stud st ud y wa s carried out in order to analyze and to understand the functional areas of the organization. It is having well structured departments which are functioning efficiently. The unique strength of AVT NPL is that it is the largest producer of






















The study in AVT group helped me a lot to understand die application of management practices in an organization. The study was based on the information collected through direct interviews, observations and written statements available from the organization. The study was a great experience and had given me firsthand knowledge about the organization.

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BIBLIOGRAPHY

Literacy Reference: Text Books References:

AVT NPL, South Vazhakulam, Aluva

Stenu Johny AVT OS

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