PROJECT REPORT ON STUDY OF DIFFERENT HR FUNCTION IN TATA STEEL, WEST BOKARO DIVISION

PRESENTED BY:-

SUMAN SOURAV

B.B.A
BIRLA INSTITUTE OF TECHNOLOGY MESRA-835215, RANCHI, LALPUR CAMPUS 2012
DECLRATION CERTIFICATE

I, Tarun Kumar Rez, student of Bachelor Of Business Administration 5th semester from BIT MESHRA EXT.CENTER ALLAHABAD declare that this project report titled Costing System completed by me in Tata steel WEST BOKARO DIVISON under the guidance of Mr. (Sr. manager HR/IR) and Mr. M.N

Rao(Sr. Manger Tanning)

Date: 01-05-2012

SIGNATURE Suman Sourav Birla Institute of Technology, Lalpur campus.

CERTIFICATE OF APPROVAL

The forgoing project entitled Setting of honey processing enterprise is hereby approved as a creditable study of research topic and has been presented in satisfactory manner to warrant its acceptance as prerequisite to the degree for which it has been submitted. It is understood that by this approval, the undersigned do not necessarily endorse any conclusion drawn or opinion expressed therein, but approve the project for the purpose for which it is submitted. .

Date: 10-12-2010

(EXTERNAL SIGNATURE)

ACKNOWLEDGEMENT
I have great pleasure in acknowledging all persons with whose help and co-operation I have been able to complete my summer training project in west bokaro division, Tata steel. I am very grateful to the management of Tata steel, west bokaro division who granted me this opportunity to pursue my training in Tata steel. I would like to express my sincere thank Mr M.N Rao(sr.manger tranning) and Mr. Kumar Sunil (Sr. manager costing) for giving their valuable time, energy, guidance and sharing their enhanced knowledge, without which this project havent been accomplished.

Mr. Kumar Sunil (Sr, Manager Cost)

PROMOTERS
Our firm is a partnership firm and is operated and promoted by:

Name: suman soura Age: 20 yrs. Qualification: BBA from Birla Institute of Technology. Experience: No Experience.

Name suman sourav Age: 20 yrs. Qualification: BBA from Birla Institute of Technology. Experience: No Experience.

CONTENTS

Introduction Reason for selection of the project. Introduction of honey. Project description Objective of the project. Swot analysis Market research analysis Product policy and design Pricing policy Investment requirement Market potential Implementation schedule Product strategy Marketing Plan Target market Manufacturing Process Distribution of Honey

 Competitors Best way of consumption honey Projected trading& profit and loss and Balance sheet of 2 years. Ratio Analysis Limitation Conclusion Bibliography

HONEY PROCESSING

INTRODUCTION We are going to set up a Honey processing enterprise in Manauri area which is located in Allahabad city.

The other information related to the firm are as follows:-

Name of firm: Honey processing enterprise

Name of our product: Fresh Honey

Address: Honey processing enterprise

ratu, Allahabad.

Activity of the firm: The firm is which are involved in the

manufacturing of of honey are which is very useful for day to day life.

Estimated Cost: 4 lacs

REASONS FOR SELECTION OF THE PROJECT

Need for honey is increasing in coming days.

The demand for ayurvedic medicines increases day by day which is made with the use of honey.

The raw materials such as wooden boxes, bees feed, cheap unskilled labour are easily available.

INTRODUCTION OF HONEY

Honey is a consumable product and it is also used extensively in making Ayurvedic medicines. Natural honey is always in demand round the year. Natural honey is obtained from honey bees and hence bee-keeping is a profitable activity. But it has to be undertaken at a place where there is a very limited movement of people or vehicles. This activity has potential to provide regular income especially in rural areas. Therefore, the government is also encouraging this activity and Khadi and Village Industries Board extends many incentives as well as marketing support. The project of honey production, processing, packaging and marketing envisages the farming of honeybees, extraction of honey, its

processing in the factory, followed by packaging and then distribution or supply to the consumer market. The proposed business will start with 6000 beehives initially, however, within a few months it will reach around 15000 hives which will be settled in Manauri in the farming areas where wild plantation or crop farming is common. Once the hive is ready and filled with honey, it will be extracted using prevalent extraction techniques and will be stored in large plastic drums. Processing and packaging will be performed in the production facility while Quality Testing will be outsourced to third party. In the end, packaged honey of different grades will be supplied to the local market through distributors.

PROJECT DESCRIPTION
The project consists in developing a honey processing center in Manauri. The center will have 6000 beehives and will focus on quality in all the production stages from processing, purification, packaging, labeling, standardization, storage to proper distribution to market outlets The processing consists in collecting honey from the extractor and then straining to remove any leftover beeswax. The purification consists in removing any impurities such as wax particles, other debris and air bubbles incorporated during extraction. The packaging will present the product in an attractive way the preferred package for honey is the glass jar by using high quality labels that show the brand, the nutrition information, expiry date, manufactured date, price and other important consumer information. The quality control will verify the honey composition to ensure consistency.

OBJECTIVES OF THE PROJECT

To produce a high quality honey and building loyal client. Being a trustworthy source to buy pure honey. To provide the customers with new types of honey. To provide the customer with right and competitive price. Distributing well packaged and labeled honey. Focuses on women employment.

SWOT Analysis STRENGTHS: Natural conditions in Manauri are favorable for honey production. Government programmes are available to promote the sector and give technical assistance. Many processors and entrepreneurs are involved in the sector. Unique taste because of the climatic conditions.

WEAKNESS: Production volume is dependable on weather conditions (dry seasons). Low concentration of production (lots of small/ nonprofessional and scattered producers).

 Low quality of raw product. Lack of market transparency.

OPPORTUNITIES: Introduction of quality standards and control will improve the domestic and export marketing Export of high quality honey will result in higher export prices. Ecological honey production as good opportunity already recognized. Market transparency (establishing collection and wholesale markets) will improve supply of raw material and quality

THREATS: Opportunistic behavior of minor dealers and powerful agents obstacle for free market conditions. The present market structure (producers) obstacle for introducing quality control. Poor market power of producers in maintaining the quality of the honey.

 Insufficient financial resources for technological improvements.

MARKET RESEARCH ANALYSIS

MARKET POTENTIAL
The first task we faced in demand analysis was to identify our potential in long-run marketing opportunities.We have done our marketing research through conducting telephonic interview, face-to-face meeting . By analyze the collected data,we have gained a better picture of the size of our market opportunities. The Market Opportunity Analysis will help you determine the information services you should be offering, based on the needs of the organization and the librarys capabilities. In market opportunity, we try to analyse buyer wants and his behavior and accessing market size. Here we have a list of information required, based upon which we have conducted our market opportunity analysis: To know the different market segment. To know the overall market demand for the honey. To know information regarding our competitors, marketing strategies, distribution channel, pricing method and quality of material. To know the infrastructure requirement for setting up of the enterprise. To know the extent of profitability of the project. To know the risk involved in execution of the project. To make certain product is identifiable and distinct from your competitors.

Through market analyzing all the information we find the current demand for honey are not being met by the manufacturer and conditions for setting our plant is

favorable, so we have enough market opportunity to position our self in Honey processing enterprise.

MARKET SIZE
Our market research and analysis highlights the practicality of the project or it highlights the feasibility of our project work. We have done our market research in order to access or evaluate different factors like economical, financial, technological, and social desirability factors involved in setting up of our factory. Our market research is based on face-to-face meeting with the suppliers, Marketing Intermediaries, individual customers and competitors. On the basis of information given by these persons we have segmented our potential demand market in to following zones:

Chitrakoot zone.

Pratapgarh zone. Kunda zone. Fathahapur zone. Jonpur zone.

PRODUCT POLICY AND DESIGN

Product policy must develop a market plan for achieving its goals. Our product policy consists of different decisions about the products, which are following:-

 What kind and quality of product to be produced? How to position our product?

Where to position our products etc? We can take decisions regarding this question by analyzing relevant background data about projected sales, profit, the market, competition and distribution channel etc. Our product policy consists of action programs, which answer the following conditions: What will be done? When will it be done? Who will do it? How much will it cost?

Our action program allows us to associate projected profit and loss statement with our product policy.

PRICING POLICY
In pricing policy we have emphasized our self in establishing a price list offering schedule of discount to our target customers. Price charge for our product and services will greatly effect the sales volume, profit level and other among things, your business image. We have positioned ourselves in Good value-strategies in which we are providing good quality product at low price. Since our enterprise or plants objective is to maximize market share and incured a reasonable profit so we are concentrating in market penetration pricing. Here we will set our product price relatively low to win a large market share. The following objectives are to be considered while fixing the prices of the product: The primary objective of the firm is to maximize its profits.

 Price stabilization over a period of time is another objective. The pricing policy is to face the competitive situations in the market. Maintenance of market share. Deeper penetration of the market. Target profit on the entire product line irrespective of profit level of individual products.

OUR PRODUCT COST IS Rs.180 per KG.

Space program:
Land has to be in the secluded and forest or hilly area. A plot of around 150-200 sq.mtrs. is sufficient. To limit the capital cost, the promoter can start this activity on own land or it can be obtained on long term lease. There is no need to have a sturdy building but a shed of around 20-25 sq.mtrs. with asbestos sheet roofing is sufficient. It may cost Rs.60000/-.

Investment requirements:
The initial investment includes the equipments needed to start the operations, the bees. The table shows the requirement : Initial investment Item Equipment Protective Clothes Gloves Total equipments

Quantity 10 10

price 400 250

Total price 4,000 2,500

Helmet Smoker Hive Tool Bee Brush Scratcher Uncapping tray Hive Pliable steel stand for hive Feeder Honey extractor (12 frames) automatic Honey tanks (200kg) incl. filter Support for tanks

5 5 20 5 10 10 300 300 1000kg 2 5 5

300 200 100 90 300 1,000 300 100 20 10,000 10,000 2,000

1,500 1,000 2,000 450 3,000 10,000 90,000 30,000 20,000 20,000 50,000 10,000

Staffing structure:The honey collection center will have a general manager and an assistant on a full time basis. Moreover, the center will employ 15 seasonal workers.
Staff Structure Staff Structure N of staff Monthly Salary

Annual salary 24,000 12,000 36,000

General Manager Assistant

1 1

2,000 1,000

Total salary
Staff Structure N of staff

In addition, 15 workers at a daily fee of Rs. 100 , will work every season to collect, label and store the honey. Therefore, TOTAL WAGES:-54000

MARKET POTENTIAL
Honey has substantial medicinal properties and is used in India since long. Procurement of natural or pure honey is becoming difficult due to

urbanisation and de-forestation. Simultaneously, its demand is steadily increasing as Ayurvedic medicines are becoming more and more popular. To facilitate rearing of honey bees to obtain natural honey, many government agencies are providing assistance/incentives. Mahabaleshwar hill station of Satara district in Maharashtra is an ideal location for this activity. Realising this potential of the area, Beekeeping Directorate provides training as well as buy-back facilities at this centre. Thus, this activity has very good potential in and around Mahabaleshwar. There are many locations in the North East States of the country where this activity can be taken up.

IMPLEMENTATION SCHEDULE

Scheme preparation and schedule: 1 month.

SSI provisional registration: 1-2 month.

Installation of Machinery and power connection: 1-2 month.

Trial run and Production: 1 month

PRODUCT STRATEGY

Honey is made up of: Natural sugars 80% (mainly laevulose, dextrose and glucose) Moisture 17% Mineral traces 3%. (Dark honeys are the richest in minerals)

Color in liquid honey varies from clear and colorless (like water) to dark amber or black. The most important aspect of honey color lies in its value for marketing and determination of its end use. Darker honeys are more often for industrial use, while lighter honeys are marketed for direct consumption.

90% of the honey produced in the world is eaten directly as table honey. The remaining 10% is used as in ingredient in a diverse range of products, such as food (baby foods, breakfast cereals, meat packaging), cosmetics (soaps, shampoo, lotions), alcohol (some liquors and wines).and medicine.

The preferred package for honey is the glass jars because it requires fewer chemicals for storage and it can highly preserve the quality and also is recyclable. Besides, honey can be seen through the glass jar, as the visual impact is very essential to the consumer.

Marketing Plan

The honey collection center will allocate a yearly budget to marketing and advertising activities. The center will be focusing on the following promotional activities to help widen its network and enhance brand image: Ensuring high quality products are constantly delivered to the consumers in order to build loyal client. Organizing tasting events at major supermarkets. Increasing consumerss awareness towards the benefits of honey. Participating in trade fairs. Planning promotion campaigns. Developing direct contacts with all the beekeepers of the Allahabad as well as neighboring Allahabad in order to purchase additional quantities of honey to ensure constant supply and to be able to market the centers facilities in order to rent them. Getting in touch with the largest supermarkets in the Allahabad .

TARGET MARKET

 Ayurvedic Industry Food Processing Industry Exports Cosmetic Industry

The Manufacturing Process

Bee-keeping activity should ideally located where there are minimum movements of human-beings with very little noise. Forest area is, therefore, suited with many flowering plants naturally grown. Movable wooden frames with boxes are placed at such locations and these boxes are spread with honey spice to attract more and more honey-bees. These bees leave fresh honey sucked from flowers in the cells of honey-comb provided in the boxes to eat bee feed. When these cells are full of honey, they are hermetically sealed by capping with wax and then honey is extracted from these cells. Freshly extracted honey is warm and easy to bottle. It is essential to undertake proper training of extraction and bottling.

Full honeycombs removed from hive

To remove the honeycombs, the beekeeper dons a veiled helmet and protective gloves. There are several methods for removing the combs. The beekeeper may simply sweep the bees off the combs and guide them back into the hive. Alternately, the beekeeper injects a puff of smoke into the hive. The bees, sensing the presence of fire, gorge themselves on honey in an attempt to take as much as they can with them before fleeing. A third method employs a separator board to close the honey chamber off from the brood chamber. When the bees in the honey chamber discover that they have been separated from their queen, they move through a hatch that allows them to enter the brood chamber, but not reenter the honey chamber. The separator board is inserted approximately two to three hours before the honeycomb is to be removed.

The majority of the cells in the comb should be capped. The beekeeper tests the comb by shaking it. If honey spurts out, the comb is reinserted into the honey chamber for several more days. Approximately one-third of the honey is left in the hive to feed the colony.

Uncapping the honeycombs

 Honeycombs that are at least two-thirds capped are placed into a transport box and taken to a room that is completely free of bees. Using a long-handled uncapping fork, the beekeeper scrapes the caps from both sides of the honeycomb onto a capping tray. Extracting the honey from the combs The honeycombs are inserted into an extractor, a large drum that employs centrifugal force to draw out the honey. The extractor is started at a slow speed to prevent the combs from breaking. As the extractor spins, the honey is pulled out and up against the walls. It drips down to the cone-shaped bottom and out of the extractor through a spigot. Positioned under the spigot is a honey bucket topped by two sieves, one coarse and one fine, to hold back wax particles and other debris. The honey is poured into drums and taken to the commercial distributor.

Processing and bottling At the commercial distributor, the honey is poured into tanks and heated to 120F (48.9C) to melt out the crystals. Then it is held at that temperature for 24 hours. Any extraneous bee parts or pollen rise to the top and are skimmed off.

The majority of the honey is then flash-heated to 165F (73.8C), filtered through paper, then flash cooled back down to 120F (48.9C). This procedure is done very quickly, in approximately seven seconds. There are several methods for removing honey combs. The beekeeper can either sweep the bees off the combs and guide them back into the hive or inject a puff of smoke into the hive. When the bees sense the presence of fire, they gorge on honey in an attempt to take as much as they can with them before fleeing. Somewhat tranquilized by engorgement, the bees are less likely

to sting when the hive is opened. Alternately, a separator board can be placed between the honey chamber and the brood chamber. When the bees in the honey chamber discover that they have been separated from their queen, they move through a hatch that allows them to enter the brood chamber, but not reenter the honey chamber. Although these heating procedures remove some of the honey's healthful properties, consumers prefer the lighter, bright-colored honey that results. A small percentage, perhaps 5%, is left unfiltered. It is merely strained. The honey is darker and cloudier, but there is some market for this unprocessed honey. 6 The honey is then pumped into jars or cans for shipment to retail and industrial customers.

Byproducts/Waste

Four major byproducts of the honey-making process: beeswax, pollen, royal jelly, and propolis. Beeswax is produced in the bee's body as the nectar is transforming into honey. The bee expels the wax through glands in its abdomen. The colony uses the wax to cap the filled honeycomb cells. It is scrapped off the honeycomb by the beekeeper and can be sold to commercial manufacturers for use in the production of drugs, cosmetics, furniture polish, art materials, and candles.

[PROCESS OF HONEY FROM INPUTS TO CONSUMPTION

Inputs
Beekeeping

Collection & Processing Trading Consumption

Wooden Boxes,

Bees Feed Place Bee Hives,

Extract Honey Collect Honey,

Reduces moisture, Filter in drums Pack and Sale,

Advertise-ment and Market Promotion Consume as Food,

Uses by Ayurvedic Companies etc.

PROMOTION POLICY
For entering any new market, one must have effective promotional policy for the product. Through our market survey we find that only 75% custumer and suppliers

are satisfied with the current quality and price of the honey. So we decided to promote our product through free sample are offering to customer to try the product and convincing our potential customers about better quality and lesser price of our product to the potential customers.

PACKAGING POLICY
Since our product is high value items so packaging is required. The packaging will present the product in an attractive way the preferred package for honey is the glass jar by using high quality labels that show the brand, the nutrition information, expiry date, and other important consumer information.

DISTRIBUTION POLICY
Distribution system is the channel through which we distribute product and services to the target customers. As we all know that an organization must have a sound distribution policy in order to mobilize its resources through proper channel. In our organization we have number intermediaries and distributers through which honey is distributed to the target customer.

DISTRIBUTION OF HONEY

MARKET COMPETITION
In order to run a successful enterprise it is necessary to keep an eye on every step of our competitors and to be ahead of them in our decision making. We have done market research in order to find out our major and minor competitors in the potential demand market. They are as follows: -

MAJOR COMPETITORS

Competitor name Dabur India limited Baydhnath Patanjali

Mehsons

Product name Dabur honey Patanjali pure honey

Mehsons pure honey

Price (per kg) 240 250 300 275

MINOR COMPETITORS

Competitors name Pragya private limited

Product name Pragya honey

Price (per kg) 185

Mayure private limited

Honey

190

BEST WAY OF CONSUME HONEY

TRADING ACCOUNT OF 1st YEAR Dr. Cr. PARTICU AMOUN PARTICU AMOUN -LARS T T LARS To 235000 By Sales 450000 Purchase To Wages 54000 By Closing 30000 stock To Gross 191000 Profit c/d Total 480000 480000

PROFIT &LOSS ACCOUNT OF 1st YEAR Dr. Cr. PARTICULARS AMOUNT PARTICULARS AMOUNT
To Travelling expenses To Establishment expenses To Salaries To Stationery To Electricity To License fee To Advertisement To Rent To Net Profit TOTAL 8400 40,000 36,000 960 6,000 5,000 6,000 56,000 33,640 192000 By Gross Profit b/d By Scraps 191000 1000

192000

BALANCE SHEET OF 1st YEAR

LIABILITIES
Capital P/L Creditors

AMOUNT
300000 33640 3000

ASSETS
Machinery Furniture Other Fixed

AMOUNT
20000 20690 202950

Assets Cash in Hand Cash at Bank Closing stock Debtors TOTAL 336640

20000 33000 30000 10000 336640

TRADING ACCOUNT OF 2nd YEAR Dr. Cr. PARTICULARS AMOUNT PARTICULARS AMOUNT To Opening 30,000 By Sales 5,00,000 Stock To Purchases 2,40,000 By Closing Stock 40,000 To Wages To Gross Profit c/d TOTAL 54,000 2,16,000 5,40,000 5,40,000

PROFIT &LOSS ACCOUNT OF 2nd YEAR

PARTICULARS AMOUNT
To Travelling expenses To Salaries To Stationery To Electricity To Advertisement To Rent To Dep: Machinery (15%) Furniture (10%) Other Fixed Assets (10%) To Bad Debt To Net Profit TOTAL 9,400 36,000 960 8,000 9,000 65636 3000 2,069 20,295 1,000 62,640 218000

PARTICULARS AMOUNT
By Gross Profit b/d By Scraps 2,16,000 2000

218000

BALANCE SHEET OF 2nd YEAR LIABILITIE S

Capital 315000 Add: Net Profit 62640 Creditors

AMOUN T
3,77,640

ASSETS
Furniture 20,690 Less dep: 2,069 Machinery20,00 0 Less dep: 3,000 Other Fixed Assets 2,02,950 Less dep:20,295 Debtor 10,000

AMOUN T
18,621

2,000

17,000

1,82,655

9,000

Less Bad debt: 1,000 Investment Cash in Hand Cash at Bank Closing Stock TOTAL 3,79,640

33,640 28,724 50,000 40,000 3,79,640

RATIO ANALYSIS Current Ratio:Current assets/current liabilities Current assets:-cash in hand, cash at bank, closing stock, debtors. 1st year=20,000+33,000+30,000+10,000=93000 2nd year=50,000+28724+40,000+9000=127724 Current liabilities:- creditors 1st year=3000 2nd year=2000 1st year ratio=31:1 2nd year ratio=63:1 QUICK RATIO:Current assets-closing stock/current liabilities

1st year:(93000-30000)/3000 =21:1 2nd year:(127724-40000)/2000 =43:1

ACTIVITY RATIO: WORKING CAPITAL TURNOVER=Net sales/ Net working capital 1st year: 450000/(93000-3000) =3.9 times 2nd year:500000/(127724-2000) =5 times Fixed assets turnover=Net sales Net fixed assets 1st year=450000/(200000+20690+202950) = 1.8 times nd 2 year=500000/(17000+18621+182655) = 2.2 times PROFITABILITY RATIO: Net profit margin=Net profit x 100

Sales 1st year=33640 x 100 450000 = 7.47% 2nd year=62640 x 100 50000 =12.5% Gross Profit margin=Gross profit x 100 Sales st 1 year = 191000 x 100 450000 =42.4% 2nd year=216000 x 100 500000 =43.2%

CONCLUSIONS OF RATIOS RATIO Current ratio Quick ratio Activity ratio Working capital turnover Fixed assets turnover Profitability ratio Net profit margin Gross profit margin 1stYEAR 31:1 21:1 3.9 times 1.8 times 1nd YEAR 63:1 43:1 5 times 2.2 times

7.47% 42.4%

12.5% 43.2%

LIMITATIONS
The time consumption between starting a new venture to starting its production is too much. If not trained it is harmful. Not very much moving of people environment is need which is not easily available. To get Permission from authorities take time.

CONCLUSION

It is not easy to enter in to the market. Potential demand is high. In few years demand is expected to increase highly. It is very much profitable business.

BIBLOGRAPHY Internet Marketing books NSIC