1

INTRODUCTION
An organization study implies a comprehensive and systematic approach
adopted by a trainee in order to get him familiar with the working of an
organization as a whole. The word organization study is the context of the
board term administration, refers to the persons, committees or departments
who make up a body for the purpose of administrating something and
without it proper care at the higher. Middle, lower level of administration, it
would be practically impossible for any management to run the operations
smoothly. An organization is a planned co-ordination of a number of people
and their activities for the achievement of some specific goals through
division of labor, and hierarchy of authority. An organi zation study
invol ves the study of the structure and functioning of its departments.
All organizations have a management structure determines relationships
between functions and positions, and subdivides and delegates roles
responsibilities, and authority to carry out defined tasks.

In an organization study each and every department of an organization is
being observed and analyzed in detail. The study gives importance to every
department of an organization and projects their importance towards the
organization in achieving its objectives. It also gives an opportunity to
interact with the people working in the organization.
The study helps to get awareness about the organizational structure and
functioning of successful organization. Organizational structure means the
systematic and orderly arrangement of personnel in an organization and
delegation of authority in order to avoid raw conflict.


2

OBJECTIVES OF THE STUDY

The organization study is mainly for the studying the various functions of the
organization and its departments, from this one can have a good industry
exposure and practical knowledge about operations through observation.
Primary Objectives
The primary objectives of the study are to carry out an organizational study
including departmental study and functions in eastern condiments pvt.ltd,
Adimaly.
Secondary objectives
To understand the overall working of the organization.
To study the organizational structure and its hierarchy
To study the organizational departments and its functions.
To get the knowledge of the vision, mission or objectives and goal of the
organizational
To know the inter- related departments functions of an organization
To understand duties and responsibilities of management people.
To understand the social responsibilities and quality control of the
organization
To have first hand information about the various policies and
programmes of the firm.





3

METHODOLOGY
The study was carried out for a period of 4 weeks and in the meantime,
required information was gathered from the following sources.

1. Primary Data Sources
2. Secondary Data Source

PRIMARY DATA SOURCES
I nf or mat i on was col l ect ed by conduct i ng per sonnel
i nt er vi ews and discussions with Managers and other officials,
employees of the company and also by direct observation


SECONDARY DATA SOURCES

Secondary data was collected from books, periodicals, literature published,
Internet and from other various documents. Secondary data like information
regarding the company, its history and profile are collected from company
manuals, websites and from other company records
LIMITATIONS OF THE STUDY
Following are some of the limitations that faced during the study,
The observations and analysis made in the study is mainly based on
secondary data and hence inherent limitations of secondary data may affect the
conclusions made.
Time period of study is only one month.


4







2.1 ABOUT THE SPICE INDUSTRY
Spices are defined as "a strongly flavored or aromatic substance of vegetable
origin, obtained from tropical plants, commonly used as a condiment. The name
spice is derived from the word species, which was applied to groups of exotic
foodstuffs in the middle Ages. Spice term was formerly applied also to pungent or
aromatic foods, to ingredients of incense or perfume and to embalming agents.
Spice, aromatic vegetable product used as a flavorings or condiment, normally
refers to the derivatives from certain herbs like Seeds, Leaves, Bark, roots etc.
In ancient times, spices were as precious as gold; and as significant as
medicines, preservatives and perfumes. India - the land of spices plays a
significant role in the global spices market. No country in the world produces as
5

many kinds of spices as India with quality spices come from Kerala, an Indian
state.
Spice and derivatives market is booming because these product find
applications in a number of industries including pharmaceutical, medicine,
beverages, food processing, personal hygiene products to name or few
developing countries especially in the Asian continent are the major producers of
variety of spices. A large percentage of international and domestic trade takes
place in the dried form. India, Indonesia, China are few of the prime producers of
a variety of high quality spice and also significant contributors to the global spice.
HISTORY OF SPICES
Humans were using spices in 50,000 BC. The spice trade developed throughout
the Middle East in around 2000 BC with cinnamon and pepper, and in East Asia
(Korea, China) with herbs and pepper. The Egyptians used herbs for embalming
and their need for exotic herbs helped stimulate world trade. The
word spice comes from the Old French word "espice" which became "epice" and
which came from the Latin root "spec", the noun referring to appearance, sort,
kind ('Species' has the same root.) By 1000 BC, China, Korea and India had
medical systems based upon herbs. Early uses were connected with magic,
medicine, religion, tradition, and preservation.
Indonesian merchants went around China, India, the Middle East and the east
coast of Africa. Arab merchants facilitated the routes through the Middle East and
India. This made the city of Alexandria in Egypt the main trading centre for spices
because of its port. The most important discoveryprior to the European spice
trade was the monsoon winds (40 AD). Sailing from Eastern spice growers to
Western European consumers gradually replaced the land-locked spice routes
once facilitated by the Middle East Arab caravans
The control of trade routes and the spice-producing regions were the main
reasons that Portuguese navigator Gamma sailed to India in
1499. Spain and Portugal were not happy to pay the high price that Venice
6

demanded for spices. At around the same time, Christopher Columbus returned
from the New World, he described to investors new spices available there.
The military prowess of Afonso de Albuquerque (14531515) allowed the
Portuguese to take control of the sea routes to India. In 1506, he took the island
of Socotra in the mouth of the Red Sea and, in 1507, Ormuz in the Persian Gulf.
Since becoming the viceroy of the Indies, he took Goa in India in 1510,
and Malacca on the Malay Peninsula in 1511. The Portuguese could now trade
directly with Siam, China, and the Moluccas.
The Silk Road complemented the Portuguese sea routes, and brought the
treasures of the Orient to Europe via Lisbon, including many spices.

INDIA and SPICE
Indian spices include a variety of spices and herbs grown across the Indian
subcontinent (South Asia). With different climates in different parts of the country,
India produces a variety of spices, many of which are native to the Subcontinent,
while others were imported from similar climates and have since been cultivated
locally for centuries.
Spices are typically heated in a pan with ghee or cooking oil before being added
to a dish. Lighter spices are added last, and spices with strong flavor should be
added first. Curry is not a spice, but a term which refers to any side dish in Indian
cuisine. It could be with a gravy base or a dry item. A curry typically contains
several spices blended together.
India had a great value in spice producing and using. India has traditionally been
known for its spice and culinary herb production. It is one of the largest spice
producing and consuming country. Its strategic location, climatic condition,
advanced production process and availability of cheap labor makes it
advantageous for the producers to ensure large scale production of quality
spices and herbs.
7

SPICES IN KERALA
Kerala is very famous for the exotic spices grown in the region. Once part of the
legendary Silk Route, Kerala has historically generated international interest and
trade links due to the abundance of these condiments.
Spices that grow well in this region are cardamom, cinnamon, clove, ginger,
vanilla, nutmeg, black pepper and ginger and the leafy oregano, rosemary, curry
leaves, thyme, basil (tulsi), mint, bay leaf, coriander and sage. If you are touring
the state especially the Malabar Coast and the high hilly regions do pick up your
choice of spices and condiments. The spices of Kerala are of export quality;
however, it makes sense to buy these from an authorized Government shop.
PRESENT SITUATION
In order to make available sufficient quantity of quality spices for export ,the
Government is implementing programmes fo post harvest improvement and
organic cultivation of spices .It undertakes export promotion activities for all 52
spices which include marketing as well as removing hindrance and barricades to
export.
The Indian spice industry is booming with a substantial increase in exports over
the past few years. India accounts for nearly 45% and 30% in terms of volume
and value in the world spice trade.
The booming global spice market also poses good opportunities for the Indian
spice industry to provide quality spices at competitive prices. India faces stiff
competition from China, Malaysia and Pakistan in terms of pricing of the
products. Manufacturers should therefore ensure consistency in supply, product
quality, pricing and marketing strategy to increase the share in exports.
Producers are incorporating latest methods and technologies to ensure higher
quality of spices and herbs. India is one of the prime exporters of pepper, chilies,
turmeric, seed spices and spice derivatives to the rest of the world. USA, EU,
Japan and Srilanka import these Indian spices in large volumes.
8

Spice derivatives can be categorized into spice oil, oleoresins and essential oils.
The demand for spice derivatives is also increasing due to the hygiene,
standardization and consistency factor. India contributes nearly 70% to the world
spice derivative market. It exports largely to the US, EU etc. Indian southern
states including Kerala, Karnataka and Tamil Nadu provide concentrated oils and
oleoresins for use in perfumery, pharmaceuticals, foods processing and industrial
chemical industry.
Government Initiative Indian Government is providing financial assistance to
farmers, growers and spice producers and has also taken certain steps to ensure
the availability of better quality spices, more hygienically processed spices in
order to boost exports. Indian spice board also provides financial and technical
assistance to farmers.
India produces 2.5 million tons to 3 million tons of spices annually. India
produces spices of different categories worth around US$ 3 billion. In terms of
volume and value, India accounted for 46 percent and 23 percent in value of
global spice trade. (Source: Spices Board India) India accounts for 25-30per cent
of worlds pepper production, 35 per cent of ginger and about 90per cent of
turmeric production.
At present India produces around 2.5 million tons of different spice valued at
approximately 3 million US dollar, and hold the premier position in the world.
Because of the varying climate suitable for the spice cultivation almost all spices
are grown in this country. In almost all the 28 states and six union territories of
India, at least one spice is grown in abundance. No country in the world produces
as much variety of spices as India.
CONTRIBUTION OF EASTERN CONDIMENTS PVT.LTD TO SPICE
INDUSTRY
Eastern condiments Pvt. Ltd have different varieties of spices, curry
powders, blended curry powders and masala. The purity and freshness of
Eastern curry powders made Eastern a house hold name and to it grew to be a
9

leading brand in Kerala. Eastern curry powders popularly known as Strong
Masalais processed using the unique flavor-lock technique. The best quality
spices are powdered under stringent temperature control, using micro pulverizes
ensuring that the precious volatile oils that give the flavor to the spice are
preserved. Eastern curry powders are so pure and fresh so that use just half as
much as any other for excellent taste.Eastern curry powders are a household
name in Indian and export to various countries like Middle East, U.K, U.S.A,
Australia and Germany. Eastern has grown into a favorite in Indian home across
the world. Excellent quality and right pricing has become the winning formulae of
the Eastern Group. Eastern curry powder is fast growing into an all India brand
with its entry into new markets and the introduction of market specific new
variants.
COMPETITORS INFORMATION

The company has many competitors in the market because the
condi ment s i ndust r y i t al so smal l scal e i ndust r y. So t he
company faces competitors mainly from three different states like
Kerala - Saras, Brahmins, Double Horse, Nirapara
Karnataka -M T R.
Tamilnadu Shakthi







10




PROFILE OF EASTERN
. The Eastern Group was founded by Late Mr. M. E. Meeran, former
chairman of the group, nearly two decades ago. He started its activities as a
business with a wholesale provision of goods at Adimaly, Kerala in 1969 named
Eastern trading company. Eastern Coffee and Curry Powder established in
1983 as a pioneer in the state to produce packed curry powders, coffee powder
and food products. Eastern Condiments was established in 1991, as expanded
form of eastern Coffee and Curry Powder, were employing 20 workers.
The company exports its products to Saudi Arabia and the United Arab Emirates
for the past few years and now the company exports its products to various parts
of the world like Middle East, the U.K, the U.S.A, Australia, Germany etc.
The production at the initial period was only 100kg per day. In those days, the
process of production was enhanced from grinding to pulverizing and so the
production could also help to preserve the natural taste of the powder. As
Eastern curry powder unit could not meet the increased demand, establishment
of Eastern Condiments with high production capacity was an absolutely
necessary.
Eastern Condiments was established in 1991 .100000 Kg of sales was
registered in 1991. The company holds 78% market share and it follow cash and
carry method. The company follows direct distribution and it had 96 routes. Now
11

the company had 4000 employees and the last year turnover was Rs. 556 Cr.
The company plan to attain the target of Rs.5000 Cr by 2020.

History of the company
The story of Eastern curry powders began in a small mountain township called
Adimali. Late Mr. M. E. Meeran was the former Chairman of the group companies
and the Managing Director of Eastern Condiments (P) Ltd. As he is the Chairman
of the group, within a short span of time, it could become the market leader in
curry powders and the Eastern group through its consistent effort in monitoring
quality excellence through rigorous standard in procurement campaign.
From the initial production capacity of 100kg per day, now it can produce
around 130 tons per day.The company started functioning with only a few
workers and established two production units in Adimaly and in Theni at
Tamilnadu. The management of the company and the workers are working with
the heart and soul for the achievement of the goals of the organization.
About Adimali Plant

Eastern condiments pvt Ltd was established as a fully fledged operating
company in 1991. In Adimali the company has two plants they are main
company plant and a masala powder division plant near to adimali town. In
adimali main plant, i.e. in main factory plant packing of Chilly, Turmeric &
Coriander (CTC), Production of rice powders, production of pickles both
vegetarian and non vegetarian, Packing of seed etc is taking place. In
masala powder division plant various masalas like Meat masala, Chicken
masala, Chana masala, Garam masala Sambar powder, Rasam powder
etc is taking place. In mother factory plant production of coffee and chukku
coffee is also taking place. The production of CTC powder (Chilly, Turmeric
& coriander) is taking place at Eastern Condiments Theni unit, and it is
brought to the mother factory for packing and marketing. Main the Adimali
12

unit is focusing Kerala marketing. Through Adimali plant the finished goods
are marketed in Kerala by van sales. The van along with sales man and
sales executives approach the dealers. The clearance of stock in van is
made from the depots of Eastern which is spread around Kerala. Eastern
have 5 Depots spread in different places namely,

1) Thrissur
2) Kozhikode
3) Thiruvanathapuram
4) Kottayam
5) Okkal

Awards Won
The eastern group has won many prestigious awards for its outstanding performance by
Spices Board India for 11 consecutive years from 1997-98 to 2012-013.Recently Eastern
group has won the best exporter of spices from spices board of India.
Mr. M .E. Meeran, former Chairman of Eastern Group was awarded as the Best
Business Man of the year by Business Deepika (leading business journal in Kerala)
in 2007-2008. He is also the award winner of Best Entrepreneur of the year by
Mangalam Publications.
The company has also won the FACT MKK NAIR MEMORIAL
PRODUCTIVITY award for the year 1995-1996.
The company has got ISO 22000 and the HACCP certification in 2007.
Eastern is the first company in India to get ISO 22000 certificate.
Certificate issued by Food Cert BV Netherlands, accredited by RvA the
first body in the world for food safety accreditation.
Eastern is an ISO 9001 certified company in 2003.
Company gets NABL accreditation for their lab.

13

INTERNATIONAL ORGANISATION FOR STANDARDISATION (ISO)
ISO was set up in the year 1987. It is a worldwide federation of standard bodies
from 138 countries. Bureau of Indian Standards (BIS) represents India in ISO.
MISSION: Its mission is to promote the government of standardization and
related activities in the world with a view to facilitate international exchange of
goods and services and to develop co-operation in intellectual, scientific,
technological and economic activities.
ISO Series
ISO 9000-2000
ISO 9001-2000
ISO 9004-2000.
ISO VERSIONS0
ISO 14000 for eco-friendly products and companies
ISO 9000 for the overall quality products
ISO 22000 for food safety products

ROLE OF ISO 22000 AS A QUALITY PROCEDURE FOR EASTERN
CONDIMENT PVT LTD
Eastern is the first company in India and second in Asia to get the ISO 22000
certification issued by Food Cert Netherland and accredited by RvA, the first
body in the world for food safety accreditation. Eastern got ISO 22000 for food
safety in September 2005.
There shall not be any shortage of goods in the market.
14

To give the customers delight that is giving more than what is expected by the
customer
ROLE OF ISO 22000 IN EASTERN CONDIMENTS PVT LTD
The organization shall ensure the following basic requirements for the
implementation of ISO 22000.
Identify reasonable and expected food safety hazards evaluate and
control
ensure no harm is been made out of its consumption
Communicate appropriate information regarding the safety issues related
to its products
Communicate information concerning development, implementation and
updating of food safety
Evaluate periodically and update

The ISO gave only the basic documents of the pre requisite programs and the
company has to work out in its own way for implementing ISO.
FOOD SAFETY POLICY
Eastern condimental Pvt. ltd committed to supply safe and hygienic spice
powder, masala powder, pickles, rice and coffee powder to their customers
through control of food safety hazards in the raw materials using greatest
process technology maintaining hygiene and sanitation conditions, practicing
personal hygiene system to the expectations of their customers by complying
with statutory and regulatory requirement.

Testing Facilities
15

Eastern has installed a fully-automated Microbiology-testing Lab to ensure
stringent quality in spices and ready-to-eat food products. ECPL is the first
company in India to have such a system.
WAREHOUSE AND PRODUCTION CAPACITY
In addition to the godown for raw material in Theni near Madurai (Tamil Nadu),
Eastern has its own Warehouse of 40,000 Sq.ft. for raw materials. A refrigerated
storage facility of 90,000 Sq.ft. to store 3000 MT for chilly from Voltas
Refrigerated Systems is fully functional at Theni. Apart from this,Storage of
approx. 10,000 Sq.ft. is available at Adimali (Kerala) for raw materials and 10,000
Sq.ft For finished goods. Additional storage facility of 13,000 Sq. ft. is available at
Kalady (Kerala).All warehouses are equipped with insect and rodent control
devices including pheromone traps.
MANAGEMENT OF THE COMPANY
Mr. NAVAS MEERAN is the chairman and the managing director is Mr.Firoz
Meeran. In addition to that Mr. M.E Muhammed, Mr. S.M. Muhammad hold the
Board of directors. For administration there is corporate office at Ernakulum.

The company started functioning only with few workers. Now it is grown to
more than 2200 employes, they are working with one heart and soul for the
achievement of the goals of the organization. The company started
functioning only with 25 employees. Now it is grown to more than 2200
employees, they are working with one heart and soul for the achievement of
the goals of the organization. Mrs. Nabeesa Meeran playing a key role
behind the success of the Eastern Group; she has been the principal of the
Eastern Public School Adimali.


VISION & MISSION OF THE EASTERN GROUP
16




VISION
To be preferred supplier of products and services of outstanding value,
satisfying the basic needs of the mass market through the adoption of
globally acceptable standards and continuous innovation.
To be the preferred employer in the industries we are in, by providing a
challenging work environment and adding value to our people through
exposure and shared learning.
To be the preferred business partner of all our stake holders, by providing
them with exemplary benefits and shared growth.
MISSION
To provide good quality goods to the present and prospective customers
so that company can prosper more.
To have continuous availability of products of Eastern so that there shall
not be any shortage of goods in the market.
To give the customers delight that is giving more than what is expected
by the customer.







17

3.3 COMPANY POLICIES
The companys most important policy is to produce pickles and spices powder
according to the specification of the customer. This will be achieved by;
Implementation of ISO 9001-2000 & ISO 22000 quality management
system.
Implementation of good safety and hygienic practices.
By the involvement of trained and slotted employees, the company is able
to continually improve the quality of the products by updating the quality
management system based on the customer feedback.
HRD concept fully implemented
Quality circle formed and working effectively and implemented
Enterprise resource planning ERP implemented progress in
introgression of operation

FUTURE PLAN OF THE COMPANY
The company has planned to set up one more wind mill preferably in
Andhra Pradesh as a source of cheap power for the proposed unit at
Guntur.
As a step towards Companys vision to make EASTERN a National Brand
the company plans to strengthen marketing network in Maharashtra,
Andhra Pradesh, Gujarat and New Delhi.





18

PRODUCT PROFILE
Spice Powders

Blended Spice
Powders
Eastern
pickles
Beverages Eastern Rice
BASED
PRODUCTS
(for break fast)
Eastern
Turmeric
Powders
Garam
Masala


Mango Adimalikappi
(coffee)

Puttupodi

Eastern Chilly
Power
Sambar
Powders
Ginger chukkukappi

Idlipodi

Eastern
Coriander
Power
Rasam
powders

Lemon Eastea (tea)

Dosapodi

Eastern Black
Pepper Powder
Kulambu
Masala
Gooseberry Eastern
packaged
drinking water
Pathiripodi

Eastern Ginger
Powder
Pickle
powders

Mixed veg Appampodi

Eastern
Kashmiri
Pavbhaji Fish Chambaputtupodi

19

Chilly.
Big jeera
powder

Channa
masala
Prawns Payasam mix

Methi powder

Tandoori
Masala
Garlic
Green gram

Chicken
Masala
Tender
Mango

Special powder

Chickenfry
Masala

Fish masala
Meat masala
Biriyani
masala

Kebab masala
Egg curry
Masala

Chat masala




20

EASTERN GROUP OF COMPANIES
Eastern Group of Companies is a group of companies with diverse interests and
a world leader in Indian spices. Eastern has ventured into various areas like tyre
retreads, mattresses, garments, packaged foods, mineral water and public
school and has many more projects in its dream. The detailed description of each
company is given below;

















EASTERN GROUP OF COMPANIES

Sunidra Mattresses

Eastern Aqua minerals



Eastern Newton Public School


Eastern Treads Ltd

King Richard Shirts


Eastern Curry powders


21

Eastern Curry powders
The company has provided their consumers with consistently high quality
powders and blends. Eastern Condiments operates from two modern factories
situated in the Western Ghats of South India

Natural Spice Powders
Eastern turmeric Powders
Eastern Chilly Powder
Eastern Coriander powder
Eastern Black Pepper Powder
Eastern Curry Powder
Sunidra Mattresses
Sunidra mattresses Pvt.Ltd. was set up in 1999 to manufacture rubberized coir
mattresses with a state of the art factory in Thodupuzha. The popular brand of
rubberized coir mattress manufactured by Sunidra Mattresses Pvt.Ltd.is slowly
growing and it is to be a market leader in the country. Sunidra has own the ISO
9001-2000 certificate.
Sunidra is made of rubberized coir sheets that are produced from 100% natural
latex without any added waste. These rubberized coir sheets are air permeable
and have natural breathing qualities, it does not cause any allergies and also
recyclable.
Eastern Aqua minerals
Eastern Aqua Mineral, a recently launched company was set up in the year
2002.Eastern Aqua Mineral entered the area of packaged drinking water with the
state of plant located at Ernakulum district. Eastern packaged drinking water of
22

highest purity standard, high quality with control, 1286 testing facilities and
quality product with international standards. It is available in convenient sizes.
Eastern packed drinking water is also priced attractively in keeping with Easterns
view of bringing high quality products to the common man at the right price.
Eastern Newton Public School
The Eastern group entered the area of education with the getting up of the
Eastern Public School. Mrs.Nabeeza Meeran has been the Principal of Eastern
Public School. This school ensures a high quality education from kindergarten to
primary levels with C.B.S.E syllabus providing all the residential facility residing
at the heart of Idukki District.
Eastern Treads Ltd
Eastern Treads Ltd. Is a public company engaged in the manufacturing of quality
procured tread, cushion, bonding gum and black vulcanizing cement? Its
branches all over India have been showing consistent high performance and
growth. The factory has annual turnover of 12 crore and it is located at Oonnukal,
Kothamangalam. The company has a processing capacity of 12 tonnes of cold
rubber per day with nationwide market network. This company is in the service
industry for retreading tyres and the service plant is located at Vazhakulam. The
company services by retreading of used tyres on an average basis of 1500 tyres
per month.
King Richard Shirts
King Richard, a brand of men's wear from Eastern Clothing Company was set up
in 1999. This brand was targeted at middle class. King Richard Includes all the
trends of color combinations and designs of fashion shirts and trousers with a
view to meet the aspiration of working class with a quality ready wear at
responsible price in the international styles. This factory has the production
23

capacity of 15,000 shirts per month. Top quality fabrics are used in the
manufacture of King Richard brand shirts (utilizing 100% of cotton from India and
European brands like Bergamo, Brisbane, Italian fabric etc.).

Eastea
In recent time the company launched a new product East Tea from its product
line. Taste and Strength in every sip, Eastea - Premium blended tea, from
Eastern has just entered the market with its signature promise of taste and
strength.

CSR OF THE COMPANY
Eastern Condiments Pvt Ltd, the major food products manufacturer is on the way
of powering the nations growth with heart to heart touch of humanity. As a
responsible corporate citizen, Eastern has been addressing the issue of
community development in the neighboring areas of its stations through CSR.
The activities are;
Eastern Newton school:
The Eastern group entered the area of education with the setting up of the
Eastern Public School at Adimali, Idukki dist; Kerala. Eastern Public School
ensures high quality education from kindergarten to primary levels with C.B.S.E
syllabus providing all the residential facilities and highly trained faculties to the
thousands of families residing the hills of Idukki district Kerala.
WOMEN EMPOWERMENT:
Eastern Condiments gives preference for women as their workers. Around 80%
of workers are women. Most of the women workers are living local in areas
24

LOVE PLASTIC
A project to reduce, reuse and recycle plastic wastes. It protects environment
and economy. Plastic bags and bottles are fully recyclable. Educating and
encouraging customers to recycle them is the responsible way to decrease litter
and when compared to alternatives to conserve resources and energy.
EFFLUENT TREATMENT
Anaerobic and aerobic effluent treatment plants are installed at all major spice
and grinding locations.
ORGAN DONATION

MILESTONES OF EASTERN
1969-83: Birth of ETC &Eastern agencies
Install IMPEX pulverisor first in kerala
Inaguration of Eastern coffee and curry powder.

1986-1991: plant expansion
Masala powder manufacturing started.
Sales agencies appointed
Agmark approval lab activities
1991- 1992 : Birth of Eastern condiments pvt.ltd
- 100000kg of sales
- Automobile workshop
1993 : Export era started
25

Spice board approval & export
Pickle plant installed

1994 : Birth of Eastern foods
1995 : Theni plant started
1996 : Best exporter award of spices board(cont. for 10 years)
1999: Birth of M&M distributions.
2000-2005 : period of personalization
Rice powder plant
ISO 9001 certification
Spices export
2005-2009 : sales expansion
ISO 22000 certification
24 lakh kg sale







26

ORGANIZATION CHART
27

FUNCTIONAL DEPARTMENTS




Human Resource Development
Finance Department
Production Planning & Control Department
Purchase Department
Production Department
Quality Control Department
Marketing Department
Export Department
Maintenance Department
IT Department



3.1HUMAN RESOURCE DEVELOPMENT

Man power or human resources or people at work of an organization
consists at all individuals engaged in any of the organization activities regard less
of levels. Manpower is one of the primary resources.
28

The key factor in the growth of Eastern is the good and healthy employer-
employee relationship. More than 2200 employees are working with one heart,
where 80% comprises women workers.
OBJECTIVES OF H.R DEPARTMENT
1. To recruit the right persons whenever vacancy arise.
2. To give training to production supervisors and other technical personnel
3. Ensuring medical fitness to all employees by conducting medical
examination every year.
4. To evaluate the performance of every employees.

CLASSIFICATION OF WORKERS
1. Senior workers
2. Junior workers
3. Piece rate worker, Daily wage workers
4. Technical workers (workshop and maintenance)
5. Apprentice
RECRUITMENT AND SELECTION
Recruitment procedures
A) Direct method
In Eastern this method is frequently used for recruitment. The firm places jobs
advertisements in Malayalam, English newspapers and T.V medias and tries to
attract as much capable people from outside its company service.
B) Internal recruitment
29

Several posts are filled from the internal candidates. Whenever a vacancy arises,
efficient and skilled workers from the rank and file of the company are promoted
and appointed in the company. Besides, evictees, local candidates who belong to
surrounding panchayath have preference in subsequently arising vacancies.
SELECTION
1) Test are conducted only for senior position
Tests are conducted only for administrative posts. After scrutinizing the received
application the managers conduct tests for candidates.
2) Interview
After the test the managers conduct face-to-face interview with candidates and
select the best person based on his qualification and ability.
But in Adimaly branch selection is doing only for the posts of sales executive and
drivers. The executives from the Ernakulum branch directly doing the selection
procedure of remaining all posts.
TRAINING
The company will prepare yearly training schedule based on ISO 22000

TRANSFER
Employees are transferred to different departments on the basis of their skills
PROMOTION
Those workers having required qualification and eligibility are promoted to
supervisory cadres.
PERFORMANCE APPRAISAL
30

Eastern is following a special type of system for appraising the workers that is
KRA system i.e., the KEY RESULT AREA. Here the performance of individual
employee is evaluated by his superior officer. The officer will evaluate the
employees performance on the basis of result made by them and make a
report for the board of directors for recommending the promotion.
WAGE AND SALARY
The workers are paid in two systems;
Piece rate system
Under piece rate system of payment, wage is paid on output and not on time.
Production goes up when wage are paid in according to piece rate system.
This system used in the packing section.
Salary system
This mode of payment is applicable for the rest of the workers, which also
includes the loading and unloading workers. It is not on the basis of the
production, it is based on the time that they were worked.
NON MONETARY BENEFITS
The company provides a lot of non-monetary benefits to their employees.
Some of them are as following
1. Transportation
Transportation is provided to the employees to different destination points and
a very small marginal amount is deducted from their wage or salary.
2 Personal protective equipments: Personal protective equipments like
head covers, aprons and uniforms are also provided to the workers in the
packing section.
3Medical insurance
31

The employees are provided with medi claim policy, which gives free
medical insurance to the employee and his/her family.
4 Pension scheme
The scheme has been formulated for those employees who have retired from
their work.
5 Annual medical checks up
The employees are provided with free annual medical check up facilities
6 Canteen facilities
Canteen facilities are provided to all the employees where they get free food.
7 Tours and picnics
Tours and picnics are conducted once in a year which increases the
motivations and initiatives of the employees in additions to the fair and just
wage incentive system.
For the effective administration and working of the company, weekly
meetings are organized to discuss various issues and working of the
company. The chair man and the managers of department heads are in the
meeting
GRIEVANCE AND REDRESSAL
Generally grievance means any problems involving wage, working hours or
condition of working environment. In Eastern all work as family and all workers
are free to make address his problems to supervisor if he has any grievance.
The company has kept some persons in the company itself where the
employee can directly come and tell his problems in any case. For this the
company also conduct some training programs and meetings where the
employee can speak about any problem he has in the company.
32

JOB DESCRIPTION
Job description is a statement given to every employee; it contains the
detailed report about the task, way of doing, techniques to do the task, etc.
This statement is given to every employee for doing their work easily and
efficiently

4.1 STRUCTURE OF HUMANRESOURCE DEVELOPMENT
CEO

Vice president Operation

Senior manager HR and management

Asst.mgr HR

Senior officers

Officers

3.2 FINANCE DEPARTMENT
Finance is the life blood of business. Finance refers to the cash and fund
available for carrying out the business. It is very important to manage the cash
and fund for the smooth running of the business. Finance department helps the
33

organization to control the cash and fund flow of the business. Finance
department deals with the procurement and utilization of fund and the distribution
of the returns to the owners.
IMPORTANCE OF FINANCE DEPARTMENT
1. Financial department has an impact on all activities of the firm.
2. Financial department aims to discharge the finance functions successfully
3. Financial departments main aim is to use business funds in such a way that
the earnings are maximized
4. Financial department is necessary to every type of organization, irrespective
of its size, kind and nature
5. Financial department is useful for all types of organization where there is any
use of finance.
OBJECTIVES OF FINANCE DEPARTMENT
The objective of Financial Management or goals of business finance is to
maximize the companys economic welfare. There are mainly two steps for
achieving this specific objective. They are;
Profit Maximization;Profit earning is the main aim of every economic
activity. No business can survive without earning profit. Profit also serves as a
protection against the risks which cannot be measured. Thus, profit maximisation
is considered as the main objective of the business.
Wealth Maximization
When the firm maximizes the stock holders wealth, the individual stock
holder can use this wealth to maximize his individual utility. This objective helps
in increasing the value of shares in the market.
34

SOME IMPORTANT FUNCTIONS OF FINANCE DEPARTMENT
Preparation of Corporate Plans, annual plans and budgets.

Advising management on funds utilization and its implementation.

Monitoring the process of budgets achievement.

Providing taxation pinning and advisory services to the company.

Preparation of financial statements and thus identifying the financial strengths
and weakness of the firm by properly analyzing and interpreting the financial
statements.

Olden days Tally was used for the various financial operations but now Eastern
have their own software ORION specially made for the financial purpose. The
authorized share capital of the company is Rs. 35, 00,000/- divided in to 3500
shares of Rs. 1000 each. In the previous year New Vernon Bharath Investors
had invested Rs.45 crore for 15% of its share. The company has a daily working
capital of Rs.3 crore and the banking partners is FEDERAL BANK.
The monthly profit of the company is around 20 crores and the last year turnover
of the company is RS: 503 crores. Their Audit works are carried out by Deloitte
Haskins& Sells International Auditors.They will get a percentage of the profit.
SOURCE OF FINANCE
Federal Bank Loan, owners capital and also from sales.
TAX PAYMENT
35

A separate department working under finance department called
TaxDepartment.Tax payment through e-filling is in 15
th
day of every
month.There are 50-60 corers will pay for sales tax by the company.
FINAL ACCOUNTS
The Profit and Loss a/c is preparing every month and by combining all the P&L
a/c prepares the final P&L a/c and Balance Sheet is preparing annually.
A/C RECEIVABLE & PAYABLE
The company also has credit sales and purchase. They give bills to their
debtors and receive bills from creditors for credit dealings. The bills are
transferred to cash within short period.













36

3.2 STRUCTURE OF FINANCE DEPARTMENT





















CHIEF FINANCE OFFICER
COMPANY SECRETARY
SENIOR MANAGERS
MANAGER
DIVISIONAL MANGER
DEPUTY MANAGER
SENIOR OFFICER
OFFICER
DATA ENTRY OPERATIONS
37


3.3 PRODUCTION PLANNING AND CONTROL DEPARTMENT
Production planning and control is the department which plans everything
regarding production. It find out what is to be produced, when, what quality and it
even informs the purchase department about what raw materials to be purchased
for production PPC regulates stock inflow and out flow with the help of ORION
software so the amount stock will be readily available
They make plans according to the data provided by the marketing
department. Based on this, they give instruction to purchase department and the
production department. Production is according to the requirement and will
depend on the seasonal demand.
The monthly production of Eastern is 240000 tons. This is based on
monthly demand. Every sales executive gives the order from retailers. Based on
this PPC gives instruction to both production and purchase.

OBJECTIVES OF PPC DEPARTMENT
1. Increase profitability of the company
2. Quality control
3. Maximize output with minimum input
4. Minimize cost
5. Coordination between men and machines
6. Establish routs and schedule of work
7. Ensure operations are run efficiently and as planned
8. Optimize the use of resource, material, machines etc.

PROCEDURE
38

All 5 production location is handled from Adimaly Itself they make plans
according to the data provided by the marketing department. Based on the
information from marketing department and give instruction to the purchase
department and production department. They make plans according to the data
provided by the marketing department for the coming period). Based on this they
give instructions to purchase department and production department.
They plan for 3 months later it divided on monthly basis and finally supervisions
in production scheduling on weekly basis. Production is according to the basis of
the requirements and will depend on seasonal demand.
3.3 STRUCURE OF PPC DEPARTMENT










BOARD OF DIRECTORS
Production Head
Manager P C
S R Officer
Officer
ASST MANAGER
39




3.4 PURCHASE DEPARTMENT
Performance of a manufacturing firm always depends on the efficiency of
its purchase department. The various raw materials need for production is
purchased by this department. If the materials are purchased at right time at the
right quality from the right suppliers it results in production of materials as per the
request of inventory control section.
Mainly Purchase Department is connected with Purchasing of Raw materials and
also for Purchasing Automobile Spares and Machinery parts. Mainly Chilly are
brought from Gujarat and Karnataka and Turmeric from Kerala and E. Road. For
Storing the Raw materials a well furnished go down is there in Theni.
OBJECTIVES OF PURCHASE DEPARTMENT
- To provide uninterrupted flow of materials and service for production
department
- To find reliable alternative source of supply
- To buy at the most economic order quantities
- To buy the best value, a combination of right quality at the best price with
the best supplier service
- To maintain good relations with vendors
PURCHASING PROCEDURE
Evaluation of existing suppliers for raw materials
This is the first step in the purchasing procedure. The evaluation of the suppliers
is mainly done on the basis of rating them. There are mainly three types of
rating methods they are;
40

1. Quality Rating
2. Supply Rating
3. Delivery Rating

QUALITY RATING
The quality rating is done on the basis of the quality of the raw materials before
purchasing it. The raw materials are tested by the quality control department and
make sure that the raw materials are of best quality and non-hazardous.
SUPPLY RATING
The supply rating checks the suppliers ability to supply the raw materials at
right time. The rating is done on the basis of a quality technique; the maximum
mark given is 15, which is given to the supplier who supplies the raw materials on
or before the prescribed time. The total mark is calculated on 70 and it is given to
the accepted suppliers
DELIVERY RATING
This is calculated on the basis of the correct time of the delivery of the materials
A) Registration assessment of potential suppliers
B) Purchasing order
C) Purchasing
D) Verification of the purchases products
DIVISION OF PURCHASE
In Eastern the purchase can be done in five small divisions. The purchase
department is divided in to small groups because of convenience. The five
divisions in purchase department are given below.
1. Packing division
41

Product mainly deals with purchase of packing materials. Packing materials are
purchased from Leeths, Relience, and Omni.
2. Raw material division
The raw materials for the production are purchased by this department. The raw
materials are purchased from Theni, Tamilnadu, Guntur, AndraPradesh
3. Mechanical purchase division
It is focused on purchasing of machinery items and their parts. Machineries are
purchased from Ernakulum.
4. Electrical purchase division
It is deals with purchasing of electrical components
5. Automotive purchase division
The automobile equipments are purchased from TVS, Automobile Eicher.
SUPPLIER EVALUATION
The supplier evaluation is done monthly ie, the internal audit. The steps involved
in the supplier evaluation are,
Trial purchase from the supplier
Registration of the supplier
Quality of materials supplied
Time of delivery of materials
Quotation-Low rates from the suppliers are accepted
ISO-criteria followed
The purchase department is functioning on the basis of the ISO schedule. The
quality and the safety of the materials are checked and analysed by the quality
control department.
SUPPLIERS IN EASTERN FOR VARIOUS PRODUCTS
42

G.T SPICES
ALFA SPICES
GOLDEN SPICES
MICHEL SPICES
KISHOR SPICES COMPANY
KAFATH TRADIND CO.
KURUWA ENTERPRICES
SYNTHITE INDUSTRRIES LTD
GREEN SPICES
LAXMI PROCESSING UNIT
SHREE GANESH AGRO INDUSTRIES
SWAPNA TRADERS
B.D PATIL SONS
VIJAYA ADI SAKTHI TRADERS
43

3.4 STRUCTURE OF PURCHASE DEPARTMENT


















3.5 PRODUCTION DEPARTMENT
The term production is An organized activity of transforming raw materials into
finished products. The first step in production takes place both at Adimaly and
Theni where the raw materials (chilly, turmeric, coriander) needed are purchased
in bulk are cleaned, roasted, crushed, powdered and packed and dispatched to
BOARD OF DIRECTORS
A G M Purchase
Assistant Managers
Senior Officers
Officers
44

Adimaly for further packing. The distribution is handled by the company itself in
itself.
FUNCTIONS OF PRODUCTION DEPARTMENT
a.Product selection and design, Process selection
b. Production planning, quality control
c. Inventory control, cost control
d. Plant layout and material handling

Eastern Condiment deals with production and packing of curry powders,
masalas, instant pickle powder and processing of pickles. The company has a
production capacity of 12 tons per day. From the production point of view, latest
techniques are used in preparing powders. Producers like steam sterilization are
followed to maintain hygiene. Statutory quality parameters are employed in every
sphere of production. To ensure that the spices reach the consumer at a fresh
conditions at a minimal cost , the company follows international packing
standards to protect, preserve and present its products. For bulk packing, the
VACCUPAC system is used where in products are packed in vacuum, thus
protecting the powders from fungal infection, moisture, oxidation etc.
Production function performs according to instructions from the PPC. PPC
gives monthly indent which is converted in to weekly plans by the production
department. A stock of goods for 3 days production is kept with the department
in case of contingencies. In production a normal waste of 2 % to 5 % is
expected. All details regarding production are given to PPC daily.
The department has 14 vehicles for the purpose of transferring raw materials.
The department has around 750 workers. The production is dependent on the
skill and experience of the workers. The productivity is around 75%
45

QUALITY ASSURANCE
The company follows stringent measures which are applied with regular
laboratory testing. The Indian spices board with their spice house certification
has recognized the companys obsession with quality and hygiene. Eastern has
also achieved the highest ranked approvals for quality, the Hazard Analysis
Critical Control Point (HACCP), ISO 9002 certification and ISO 22000
certification.
The company ensures that supe. Old methods of powdering using new
technology are what the company believes in Wooden spatulas are used to mix
the powders and huge aluminium vessels are used to roast spices, grinding is
done at required temperature, using micro pulverizes and the unique flavour
lock technique, so that the oils in the spices are conserved , giving out the right
flavours.
3.5 PRODUCTION PROCESS FLOW CHART











Chilies, coriander,
turmeric &spices
Cleaning Drying Roasting
Powdering Mixing
Packing
Marketing
46


4.5.1 STRUCTURE OF PRODUCTION DEPARTMENT



















BOARD OF DIRECTORS
HEAD PRODUCTION
SENIOR MANAGER PRODUCTION
PRODUCTION SUPERVISORS ASST. MANAGER
PRODUCTION TEAM
47

3.6 QUALITY CONTROL DEPARTMENT
Functions of this department is to ensure that the quality objectives of the firm
are relevant to meet the requirements of the product quality and are periodically
measured and compared against product quality requirement. A major purpose of
this department is to ensure that the quality policy of the firm is conformity with
the objectives of this department.
Company has a well-equipped laboratory with all facilities which costs Rs. 4 crore.
Before packing each sample of products are tested in the lab and will pack only if
they get the good quality certification from the lab. And if any products are
returned by the customers will be tested and find out the reason for rejection.

OBJECTIVES OF QUALITY CONTROL DEPARTMENT
To bring down the total aflatoxin level of chilly and chilly based
products
To establish testing facilities to pesticide residue
To maintain the quality according to the customer requirements
To maintain the quality in accordance with the ISO 22000
DUTIES OF QUALITY CONTROL DEPARTMENT
To ensure that the assurance budget are not exceeded
In charge of quality assurance department
In charge of day to day quality check
To retain ISO certification by undergoing audit periodically
Develop and implement quality policy, update it periodically and get them
approved by the board.

The quality is ensured through 3 segments, microbiology, chemical test
and instrumentation.The quality checking can be ensure in three stages like raw
material, semi finished and finished or label checking.
48

RESEARCH AND DEVELOPMENT
Eastern is in house research and development continuously endeavors to
improve its already existing standards. Further the company also innovate new
product concepts, consistently in taste, pack, after pack, ensured through strict
quality control. The packing plant of Eastern Condiments is complete with
advanced machinery, implex pulverize that can pound finest spice powders
without heating it up at all. This process preserves all the essential spice oil.The
company is fully fledged with facilities including pouch making and printing
automobile engineering division, Agmark lab.

3.6 STRUCTURE OF QUALITY CONTROL DEPARTMENT













BOARD OF DIRECTORS
Senior Manager Tech
Chemical Lab
Sr. Officer
Ass.Mgr.
Microbiology
Chemist Microbiolo-
gist
Head Technology &Engineering.
49

3.7 MARKETING DEPARTMENT
Marketing is considered to be the head of an organization. It is the most
important department in an organization. One of the important reasons behind
the success of the company is its marketing strategy compared to their rivals.
The system followed by Eastern is very unique and it has been very effective.
They deal with the wholesalers and retailers directly at their door step with the
help of around 86 direct selling regions in all around the state.
OBJECTIVES MARKETING DEPARTMENT
Developing marketing strategies
Capturing marketing insights
Building strong brand image
Delivering value to consumers

DIRECT SALES
This peculiar feature of Eastern curry powders helped it to vary from order
companies. The group directly distributes the products to retailers in Kerala. The
company has around 100 vehicles which go on around 75 routes covering the
entire state. A sales executive, sales assistant and driver will be on each van to
go for the sales
The various sales techniques consist of:-
1. Route Sales
2. Factory Fresh Outlet
3. Inter Company Sales
4. Export Sales
50

The sales executive for each route gives the order to be dispatched to each sales
depot. He also takes care of the billing and cash transactions. After making a
sale, a sales invoice is made and the summary is given to the cash department.
After the delivery of goods, the vans return and by verifying the order form and
the stock is checked. The accounts are maintained on a weekly basis. The
company has around 40000 retailers and 15 dealers. Mainly, cash transactions
are undertaken and credit facilities is given to only around 200 parties.
Meetings of the sales executives are held every week after they return from
their different routes. Here every aspect of the weekly sales will be discussed
and any problems arising can be brought to the notice of the management.
By the direct distribution the company has achieved a lot of benefits. Some of
them are as follows;
1. They can deal with the wholesalers and retailers directly at their door step.
2. The company can maintain a good relationship with the wholesalers and
retailers
3. The company can avoid the role of intermediaries in the distribution of the
product. It helps to avoid unnecessary commission, brokerage and other related
expenses.
4. The companys own vehicles are using for distribution aids to give an
important mode of advertisement in addition to the other media advertisements.
This incurs no additional cost.
Eastern Condiment has entered in to world market in the recent years. In India it
is capturing both urban and rural markets. In Kerala it is the market leader with
more than 75% market share to almost all its products. In Tamilnadu and
Karnataka the company holds 20% share and it is gaining strength. It is also to
be noted that 50% of the market is still using home made products, 50% of the
market is still untapped. So there is lots of growth potential for the economy.
51

Competitors
Saras Masalas
Brahmins Food Products,
Nirapara Spices, pooja
Grand Mas Food Product
Aachi masala,
Sakthi masala
Pricing
Eastern is the price leader in Kerala market. And its product had higher price
when compared with other products. But it is accepted because of its quality and
goodwill.
Complaint Handling
It is done on a weekly basis by the sales representatives as they are meeting the
retailers and customers directly and the complaints are collected. Later it will be
reported in the weekly meeting.
Promotional Activities
Company introduces some promotional measures like card scheme to motivate
their retailers. They also conduct some tours and give awards to some of the
retailers. Company is conducting dealers meet in a year. Now the company is
giving more importance for the promotions of EASTEA. Sales target is fixed once
in a 6 month and is hoping for 10% growth every year.


52





3.7 STRUCTURE OF MARKETING DEPARTMENT

CM
DGM MARKETING
MANAGER
MARKETING
ASSISTANT
MANAGER
SR.SALES
Executives
SALES
ADMNI.STAFFS
Sales team



53

3.8 EXPORT DEPARTMENT
Eastern Condiments Pvt Ltd is always maintaining it high quality and effective
distribution in the overseas market too. Eastern foods started exporting in the
year1995. Today the company exports its products to almost all Gulf countries,
New York, Australia, UK and many other countries, where the company has its
own distributors. The company exports above 100 tons per month. 70% of the
exporting is to Gulf countries. Exporting is done with the help of distributors.
Eastern is the leading exporter of condiments from India. Eastern has received
the spices board award for the best exporter continuously for the last 11 years.
The main products of exporting are spices and masalas.
OBJECTIVES OF EXPORT DEPARTMENT
Conduct research to find out right market
Devise marketing strategies for the target market
Understand the legal and regulatory issues

For exporting the Eastern condiments have a branch at Okkal in Kerala where
special packing for exports is done and where stuffing of goods is also done. The
rest of the procedural work is done at Adimali. The major portion of the export is
to Dubai. Each container has a capacity of 12 tons and monthly 50 containers
are exported. In the international market the product is marketed through
distributors on commission basis.

The company has well equipped laboratory with qualified and specialized
chemist for quality checking. For exporting the Eastern Condiments have
branches at Okkal and Irumalappadi in Kerala. Stuffing and packing are carried
out here itself. The rest of the procedures related to exports are done at Adimali.
It is ensured that the C&F agent for onward submission to the bank
prepare the following documents and submits to the Director under copy to the
Manager (exports) for verification and records of Export Marketing
54

Department.SDF-self declaration form it is the declaration regarding export of
goods and services according to FEMA.
On receipt of the above original documents, it will be verified and approved by
Director before presentation to the bankers. The document copies received by
Manager (exports) shall be verified and signed by him/her before taking the same
as records.
The documents are handed over to the bank for negotiation and the bank after
negotiation sends the documents to our Overseas Buyers Bank. Copies of the
above documents are maintained. The exporting is increasing year by year. The
export had 50% growth in the previous years. The company is doing exports
through shipment. Company uses its vehicles to send products to Cochin
seaport.

Time required for transportation
- Dubai 5 to 7 days
- Gulf 15 days
- USA 1 month
- Europe 1 month
For export Eastern has import and export codes. It also has spice board
registration for exporting spices. Each country has its own specifications and
requirements for the export product which has to be meet by the company before
exporting. All exports are done through Cochin seaport. Each container which is
exported will be checked before dispatch. About 500 products are exported.
Some items like pickles are meant only for export and are not available in the
local market. The turnover from exports alone for the company was 40 corers. All
the transactions are done in Dollars only, including for Middle East and other
countries
55

Major Documents:
Invoice, packing list
Bill of lading, bill of exchange
Certificate of origin, Health certificate.
Method of Payment
Down payment system.
For new customers, for the first three containers- Advance payment.
After, D/P.
D/P (Document Against payment) method is used.
L/C (Letter of credit) not using due to its complicate nature.
The importer can clear his goods after negotiating with the documents
sent by the exporter through his bank.

3.8 STRUCTURE OF EXPORT DEPARTMENT

CHAIRMAN

SENIOR MANAGER EXPORTS

SR. OFFICERS


OFFICERS
56

3.9 MAINTANANCE DEPARTMENT
Maintenance Department of Eastern are responsible for us keeping the good
condition of the plant and equipments in good condition. Maintenance
department is divided into 3 namely;
1) Electrical
2) Mechanical
3) Automobiles
4) Stores
Most of the maintenance works are done by the company staff only. If the
maintenance is for critical equipments like generator etc. they will consult the
respective company staff. Working hours is 8 hours.
Maintenance of effluence treatment plant &non conventional energy plant is also
done by this department.
TPM [TOTAL PRODUCTIVE MAINTENANCE]
Maintenance should be done at the right time and in a right manner.
This will increases the machines life time and its productivity.
Its the responsibility of the trained operator to do the daily maintenance thereby
he will be completely responsible for the particular machine which he handles. So
that production of plant will not affect.
In excellent products [Machines & operators] should be avoided.
Avoid accidents completely, if happened face/ handle it in a correct manner.
For the effective working and maintenance of ISO 22000 a FSTL (Food and
Safety Team Leader) is needed and a maintenance head is working as FSTL in
the company and it is his duty to control/guide the instrumentation of ISO 22000.



57

OBJECTIVES OF MAINTENANCE DEPARTMENT
a. Optimize the use of available funds, personnel and facilities and equipment
through the effective maintenance management methods
b. Systematically identify maintenance needs and deficiencies and capital
improvement needs at all field stations

c. Enable preparation of service maintenance and construction budget
request using systematic, standardized procedure
d. Monitor a document corrective actions, project expenditure and
accomplishment


3.9 STRUCTURE OF MAINTENANCE DEPARTMENT











BOARD OF
DIRECTORS

Tech .head
Maintenanc
e Manger
Maintenanc
e Team
Automobile
in charge
Workers
58

3.10 INFORMATION TECHNOLOGY DEPARTMENT
Today the term information technology has bellowed to encompass many
aspects of computing and technology, and the term is more recognizable than
ever before. The information technology umbrella can be quite large, covering
many fields. IT professionals perform a variety of duties that range from installing
applications to designing complex computer network and information data bases.
OBJECTIVES OF IT DEPARTMENT
1. Ensure the protection and security of data
2. Minimize duplication of effort, services and resources
3. Eliminate inefficient and costly redundancy
4. Eliminate non compatible standards and architectures
5. Identify obstacles for departments wanting to move computing operations
to the division of information technology and solve it immediately
DUTIES OF IT DEPARTMENT
1. Data management
2. Computer networking
3. Computer engineering
4. Data base system design
5. Software design
6. Management of information system
7. System management or system administration

59

The whole organization is computerized. All the departments are connected via
networks. Eastern uses oracle based software called ORION, which has been
customized to suit the needs of their particular organization. The networking is
done through a BSNL base line
The company has a good IT team for implementing the ERP (Enterprise
Resource Planning) which was started in the year 2001 and was centralized in
the year 2005. ERP enables fast transactions and systematic in all its functions.
ERP also helps in generating MIS reports which help in decision making. The
package used in ORION 7.4 and ORION 10.x (centralized data base). The
package is provided by 3 i InfoTech technologies Chennai. Intranet in provided
among the various offices at Thenni, Adimali, Chennai, Bangalore, Hyderabad
and Ernakulum. The network main server is situated at Ernakulum and all the
different divisions have their own domain to connect to the main server.
The Eastern Condiment Pvt Ltd is a fully computerized company. In which 100
machines are connected using four servers. They are;
Data base server
Application server
Domain server
Backup server

The extent of computerization is done mainly on two considerations;
considering the amount of data
accuracy needed
The company has centralized data base password control to restrict
unauthorized access.
3.10 STRUCTURE OF IT DEPARTMENT
60



CHANGE IN DUTIES AND RESPONSIBILITIES OF VARIOUS DEPARTMENTS
ACCORDING TO ISO 22000
The certification upholds the steps taken by the company to install the latest
infrastructure in every stage of manufacturing as well as logistics. The certificate
for food safety system is issued by Food Cert BV Netherlands.
PURCHASE DEPARTMENT
For ISO 22000 the raw materials used for production should be free from
hazardous substances and chemicals. The raw materials must be free from
poisonous substances. For ensuring the quality raw materials the purchase
department makes purchase only from those known dealers and farmers. For the
food products the raw materials should not be grown in areas where the
presence of potentially harmful substances and chemicals, the usage of fertilizers
must be controlled.
OFFICERS
SENIOR OFFICERS
IT MANAGER
BOARD OF DIRECTORS
61

Samples of the same item are first collected from the supplier of various places
and then samples are analyzed by the laboratory.
After the raw materials received the quality must be checked by the quality
control laboratory. If there are any discrepancies, the company has to claim on
the supplier.
PRODUCTION PLANNING AND CONTROL
The first step in production take place at Adimaly and Theni where the raw
materials needed are purchased in bulk are cleaned, roasted, crushed, powdered
and packed .For the production point of view, latest techniques are used in
preparing powders.
For the ISO certification the factory location must be free from environmental
contamination, smoke, flood, pest infection, etc and the equipment and
machinery will be well positioned for easy cleaning and maintenance. And
eastern is fulfilling all these conditions.
HUMAN RESOURCE & ADMINISTATION
According to the guidelines of ISO the managers and supervisors shall
have enough knowledge of food hygiene principles and practices to be able to
judge potential risks, take correct action, and ensure that effective monitoring and
supervision takes place.
A 16 hours training to every workers
Induction to training
The department is responsible for making all the personnel aware of their role
and responsibility in protecting food from contamination.
The HR department periodically checks the health status of the employees and
keeps them away from production and packing if any illness is found.
QUALITY DEPARTMENT
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Functions of this department is to ensure the quality objectives of the firms are
relevant to meet the requirement of the product quality and are periodically
measured and compared against product quality requirement.
A major purpose of this department is to ensure that the quality policies of the
firm are in conformity with the objective of this department. The company follows
stringent hygiene measures, which are applied after regular laboratory testing.
Each sample of raw materials must be tested to finding the humidity, quality
general contaminations, and pest infections before placing the order.
Each sample of production must be tested in the lab before packing, and it will be
packed only if it seems to be of good quality.
If any product is returned due to customer complaints, they must be tested in the
laboratory and find out the reasons.
MARKETING DEPARTMENT
As per ISO requirements batch identification is necessary in product recall in
emergencies. Each packet of food shall be permanently marked to identify the
product and batch.
All food product shall be accompanied by or bear adequate information to
enable the consumer to handle. Store, prepared, and use the product safely and
correctly.
FINANCE & IT DEPARTMENT
Finance & IT department have only a little role in the implementation of ISO
22000. They are helping other departments by keeping and updating the correct
documents. The software used for IT & Finance is ORION.
EXPORT DEPARTMENT
The good export should be of good quality and goods should not be
contaminated while the transport. The containers and conveyances for
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transporting shall be kept in an appropriate state of cleanness, repair and
condition.
MAINTENANCE DEPARTMENT
As per the ISO requirement the establishment and requirement must be kept in
an appropriate state of repair and condition to function as intended, prevent
contaminations etc. for the implementation and maintain ISO a FOOD SAFTY
TEAM LEADER is required in every organization.


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INTERDEPENDENCE OF DEPARTMENTS
All the different activities that go on in a business are interdependent and
work together to create value for the customer and wealth for the business. The
different departments of the business are interdependent; that is, they rely on
each other and work together to achieve the objectives of the business. Within a
business, it is the role of management to coordinate all the organizational
departments and ensure that they work together for the overall success of the
business. These departments support the main goals of the business. They are
very dependent on each other, and it is very important to understand the
interrelationships between them. The way that one functions might decide to
achieve its goals could affect the whole business, so considerable cross-
functional coordination is required.
In EASTERN, there is a functional interdependence between different
departments as different functions communicate with each other in order to meet
the business aims and objectives.
Human Resource department is directly related to all the other
departments as it controls all the manpower requirements in the organization. .
Human Resource Management at EASTERN has many advantages as well as
disadvantage. It is the global company and it is impossible to create certain
policies or procedures applicable in all divisions of the company, cultural and
political differences need to be taken into account.
Production is the functional area where the raw materials are converted into
finished products through a series of production process. It is done by keeping
quality conscious in mind. The quality control department ensures the quality
right from the procurement of raw materials, at each stage of production and just
before packaging. Production department also functions by collecting information
both from materials as well as marketing department. Production department
checks the quality of the raw materials and if it does not meet the standards
report it to the purchase department.
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The marketing department is related to HR, production, finance, and Store
departments. When the required products are available in the stores for the
dispatch, the marketing department dispatches the item as per the order. After
the delivery of goods, marketing department prepares the bill and give it to the
salesman. Either the salesmen collect the amount from the dealers and remit the
amount in the cash counter along with the copy of bill or the dealers or
distributors directly pay. Marketing function and sales function do have
interdependence between each other as to increase sales they need to market
the product.
The interdependence of Purchase department with the production,
finance, quality control and HR department is necessary as it deals with
products, its quality, payments and man power. They check the quality of goods
packed before dispatch.
The interrelation of finance department is between materials, production,
marketing, and Purchase, Store, quality control and HR departments. In addition
to the major functions of budgeting, raising funds internally and from financial
institutions and utilization of funds for growth of performance, it deals with all the
internal and external cash and payment transactions.
Quality control department, material department and production
department are interdependent each other. Quality inspection begins right from
the procurement of raw materials. The raw materials are purchased and tested
for quality to make sure that they are according to the standard. Quality is
checked at each stage of production either by the quality controller or the worker
itself


66





SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a business venture. The SWOT
network was described in the late 1960s. SWOT analysis is a tool for audit an
organization and its environment. It is the first stage of planning and helps marketers
to focus on key issues.
It is the factors that determine the course of action to ensure the survival or growth of
firm. The environment might present opportunities but a company might not have the
strength to exploit all opportunities. Similarly sometimes a firm will not have the
strength to meet the environment threats




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STRENGTH
Direct distribution in 40000 shops in Kerala.
Good brand name.
ISO 22000-2005 for food safety management system.
HACCP- Hazardous analysis critical control point certificate issued by food
cert BV Netherland.
98% of sale is ready cash sale.
Well established quality control lab help check raw material at all level.
The whole organizations have a computerized network.
Good relation maintaining with retailers and customers.
Availability of skilled labors in the factory.
Orders are more in export; eastern is the leading exporter of condiments.
Best spices export award from spices board for the last 11 years.
Strong relation between the organization and employee at all level is the
major reason for the success of the company.
Company focus on relationship marketing.
Complaint handling is done weekly basic.
Eastern consist of efficient and well qualified staff and management.
Eastern have 70% market share in Kerala, 20% in Tamilnadu and Karnataka
WEAKNESS
Location of factory is not perfect for easy transportation.
Lack of research in marketing level is also another weakness of the company
The price of the product is not affordable to the customer.









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OPPORTUNITY
Food needs is physiological need so there is no delay in the market condition.
Change in the life style of people a good sign for ready make food industry.
Company need more focus of foreigners market. The unexploited foreign
market helps to increase its revenue in export.
The north India market can expect more growth in future.
Extend the product line.


THREAT
High competition in local market due to the low investment requirement for
the entering this industry.
Upward trend in material price.
Change in consumer taste and preference
Availability of raw- materials from the local market is very less.
Upcoming retailers and their product
Appreciation in money value
Unexpected climate change.








69


PORTERS FIVE FORCE MODEL

RIVALRY AMONG EXISTING FIRMS:
Eastern did not have any severe or immediate competitors. According to
various area it has some competitors like
Double Horse in northern Kerala
Nirapara and Saras in Middle Kerala
Melam in South Kerala
Pooja, in Adimali
Even its has such competitors, they all together capture only 30% of the
market in Kerala, which is not a threat for Eastern having 70% market
share alone.
The greatest competition that EASTERN faces is from the rival sellers within
the industry. Saras, Brahmins, Double Horse, Nirapara, M T R,Shakthi are
among the largest competitors in the industry.
The industry faces intense competition since the concentration of
suppliers is more and reputation and goodwill of the company plays a major role in
the buyers decision making process. Its competition is often at regional level. There
are also many small local companies often operating in a specific location. Having
information and good knowledge about different techniques, technologies play a
crucial role in this industry sector.



70


BARGANING POWER OF SUPPLIERS

Spice Industry requires large inputs of labor, raw materials and services. The cost of
these inputs can have a significant effect on profitability. Whether the strength of
suppliers is weak, moderate or strong depends on how much bargaining power they
can exert. As a result they have some flex in determining product pricing, delivery,
and distribution. In this sector some suppliers are smaller and do not have much
power over the pricing and distribution of their products. However, in this sector most
of the suppliers are farmers and local market agents. They get the information from
Newspapers and other forms of print media and also from the Audio and Video
media. They have very high bargaining power as the concentration of suppliers is
high in local markets. They have less threat to the market.
BARGANING POWER OF CUSTOMERS
Spices are used throughout the world and buyers need to have an immense
knowledge about the market since, there are wide range of spices classified into
different varieties depending on their characteristics and most of the buyers get
information to make their purchase decisions through Market committee websites
and also collect additional information from the local markets with the help of their
representatives. Since Eastern has created a brand image bargaining power of
customer is less.
THREAT OF NEW ENTRANTS

Spice industry is a highly competitive industry. Even though the initial capital
investment in not very high the risk for new entrants. Sound Experience and
Customer database is a major barrier to entry and lack of management skills and
lack of knowledge of product and market information are the key barriers to entry.
The companys reputation and trust also plays important role building long term
relationship with the buyers and also because of the high concentration of suppliers
exporting the same goods usually competition in high and local politics also have a


71

significant effect on markets. Eastern has less threat from new entrants.

THREAT OF SUBSTITUTE PRODUCTS

Spices are the key ingredients in most of the cuisines strictly need the uses of
specific spices. Although there are no natural substitutes to spices there are few
substitutes like the use of Artificial or Synthetic Flavours which give almost the same
taste of the spices but, due to the health awareness most of the people now a days
inclined towards the use of authentic natural, organic spices over Synthetic spices.
Organic spices boomed in present market and hence the demand has increased for
production of organic spices. More broadly, other forms of products can be
considered as substitutes. Some might argue that the growth in use of readymade
food products pose a threat to the market, but this seems unlikely given the target
market.













72

OBSERVATIONS AND CONCLUSION

Export mainly to Gulf Countries, U.K., U.S.A and Australia. Presently the
company is exporting 60% of its products and 75% market share in Kerala.

Total number of employees is above 2500.
The company is an ISO 22000 certified company.
The company won prestigious award for outstanding export performance by
spices board India, for 11 consecutive years 1997-98 to 2008-09.
The company is having an efficient logistics wing.
The pickles are not available in the local markets.
Eastern is not supporting any political or trade union activities inside the
company.
Company has NABL accredited lab facility.
Company has strong employee morale.













73


SUGGESTIONS

It would be beneficial if the company could extend the market to other foreign
countries also.
Introduction of bottled pickles in the local market may bring in more sales
Since there is high competition in the local, national and export market the
company should try to maintain quality, taste and better customer relations in
the future also.
Being price competitive in the local market is an inevitable need to meet the
competitions.
More attention is preferably to be given into training and development of
employees
Give proper awareness about ISO standards among consumers. This will
help to improve product image.
Company can introduce customer care service for handling complaints and
suggestions.
The company has to provide humidity control facilities inside the plant.
The can introduce E- commerce facility to increase the sales.











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CONCLUSION
The organizational study conducted at Eastern Condiments Pvt. Ltd., was a general
study regarding all functions and aspects of Eastern Condiments Pvt. Ltd., and has
been primarily focused on Human Resource, Marketing, Finance, Production, and
Export & E.D.P. Eastern has achieved these enviable heights mainly due to the hard
work and commitment of quality besides bringing good product at right prices to the
consumers.
The study helped me to understand that how the company identifies the right taste of
the consumers and how it became the leading brand in south India and largest
exporter of spice powders in consumer pack from India. I could conduct a SWOT
analysis of the company which encompassed almost all the functional aspects.













75




BIBILIOGRPHY

Aswathappa.K, Organizational Behavior Text, Cases & Games, Himalaya
publishing Company, Mumbai, 8e, 2010, p.276
Aswathappa K, 2005 Humana Resource and Personnel Management, TataMcgrew-
Hill Publishers, 3rd Edition

C.N Sontaki, marketing management, kalyani publishers 2
nd
revised edition 2007
Prasanna Chandra: Financial Management- Theory and Practice: Tata-McGraw Hill,
2001.
Pandey I.M.: Financial Management, Vikas Publishing House, New Delhi, 1999.

Company website - www.eastern.in
Eastern group website - www.easterngrp.com
www.google.com
Wikipedia