1

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INDEX
Sr no .
1 2 3 4 5 6

Particular
Introduction Company profile History & Development of the unit Location of the unit Time keeping system Innovation

Page no.
3 4 6 8 9 10

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INTRODUCTION
Havmor literally meaning H-A-V-E-M-O-R-E, one of the best name for food business was coined by Late Shri Satish Chandra Chona in 1944. HAVMOR is a privately owned company manufacturing varieties of ICE CREAMS, they also run RESTAURANTS and FAST FOOD PALOURS, and they also deal with CATERING. Havmor Group of Co. has its humble beginning since 1944, when its founders started manufacturing ice cream with a hand-cranked machine. The Havmor philosophy of providing its customers with the best quality products and services at affordable prices has resulted in the brand being a household name in Gujarat. Havmor has 50% of the Gujarat ice cream market. But thats no surprise considering that the group has the largest range of ice creams in the Gujarat in a variety of flavors, packs and forms. The group has a product matrix comprising of cones, cups, candies, family and party bricks and bulk packs. Havmor introduced the concept of flavor of the month under which the company develops and markets one new flavor every month for its customers delight.

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COMPANY PROFILE

Havmor Group of Co.

Factory Address Estate, : Modern Industrial B/h. Naroda Station, Naroda Road, Ahmedabad-380 025 : 91 079 2220 3890 : Dhiren@havmor.com : 2nd Floor, Kashmira Chambers, B/h. Popular House, Navrangpura, Ahmedabad-380 009 : 91 79-2657 5100 : Kamal@havmor.com : www.havmor.com : ICE-CREAMS

Fax E-mail Office Address

Fax E-mail Website Main Product Land area

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of factory No. of employees Managing director of the Company President khanonkar

: 5000 sq. ft. : 420 : Mr. Pradeep Chona : Mr. Anand

Assistant G.manager : Mr. Dhiren Shah Purchase manager Finance & Account manager Quality Control Urvi Stores Management H.R.Assistance Pramo Vice President (HR) Marketing Dept Auditors
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: Mr. Ajay Mistry : Mr. Vatsal Parekh : Mr. Sanjay & Miss. : Mr. S.k. Shetty : Mr. Tejas & Mr. : Mr. Rajesh Shah : Mr. Kamal Desai : Mr. Mukesh

Bankers Bank

: Corporation

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HISTORY & DEVELOPMENT OF THE UNIT

Small Beginning, Big Vision, Great Ambitions Havmor Ice Cream began its branded life in 1944 in Karachi, in undivided India. By 1947, it was a popular local brand there. But in 1947, in the wake of the Partition, its founder Satish Chona had to join the exodus into India, with virtually no moveable assets. Searching for a new turf, he tried out Dehra Dun and Indore, and finally, settled down in Ahmedabad. No, it was not a case of Brand Relocation, or anything else as fanciful. He had to start the venture from scratch again. In fact, he had to begin from a hand-cart at the Ahmedabad Railway Station, churning out the Ice Cream manually. He called this fledgling brand Havmor - a neologism for Have More - which meant the customer, got more value for money, and more taste to relish, from his Ice Creams. Perhaps he didnt know it then, but he had laid the foundation for one of Western Indias most enduring market legends and good quality, like good character, wins over the situation sooner or later.

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Today, Havmor Ice Cream is a delicious facet of Western Indias daily life, and part of its market lore. It reaches hundreds of thousands of consumers through 8 main outlets and 3800 plus dealers.

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LOCATION OF THE UNIT

The location of plant or industry means to scientific choice of a region or specific sight in a region where the business unit is to situate. The main object of an industry concern is to maximize profit through minimization of production and distribution cost. The objectives are realized only if the firm is located at a place which offers all economies of production and distribution.
*

Factor responsible for plant location are:

1. Money, Material 2. Man power, Market 3. Motive power, Management 4. Machinery, Means of Communication 5. Momentum to an early start

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10

TIME KEEPING SYSTEM

Time keeping system for industrial staff
1 shift 2nd shift 3rd shift
st

Shift
~ ~ ~

Timings
8 AM TO 4 PM 4 PM TO 12 Mid Night 12 Mid Night to 7 AM

Working Hours for office staff: 9.30 TO 6.30

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INNOVATIONS
Quality is undoubtedly very important to establish and retain ones status in a competitive environment. But equally important is innovation constantly coming up with something new to maintain an edge over the competition. Hence, creativity is at the forefront of our activities. Most of our innovations have been based on the consumer feedback we have received from our ardent fans. To please them, to date we have launched over 200 flavors in 600 pack-types and forms. People eagerly await our flavor of the quarter, which has been an on-going event over the years.

Here is a representative sample of a few of our innovations:

We are the first ones to introduce Dairy Fresh an all natural ice cream which contains no additives, no preservatives, no synthetic Colors or flavour. Nothing but the pure, natural goodness of milk, fruit and nuts.

We launched many dry fruits based ice creams, an assortment of traditional Indian ice cream form, which otherwise had to be bought just prior to consumption, and that too from vendors whose quality often left a lot to be desired. We even introduced the Sorbet a fruit juice based frozen dessert.

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To match our unique products, we have often gone in for unconventional and creative packaging. Like the time when we filled Mango. Orange, Sitafal, Sweet Lime. Ice creams in the intact skins of their fruits. It was a big hit at social gatherings and special occasions. All our innovations are based on a single guiding principle i.e. Give the consumer what he likes and wants, and not what we want him to like?

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INDEX
Sr no .
1 2 3

Particular

Pag e no.
14 15 16 17 22 23 25 27 29 30 32

Introduction

Organizational Structure Main products of the company 4 Pictures of ICE-CREAMS 5 Raw material used 6 Production process 7 The process for the basic ice-cream mix 8 The process for the icecream production 9 Stores management 10 Plant layout 11 Health & ice-cream

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INTRODUCTION
Production is the process of transferring components into finished products for sales. The term production is wide in scope. It includes manufacturing process also by which raw materials are transferred into finished goods for final consumption. Land, Capital and Labor organization and entrepreneurship are the factors of production, where as making include market research, personal selling, sales promotion, advertisement, publicity and all other activities relating to distribution. Production refers to a process of fabrication of a product or a physical object through there are men, material, capital and entrepreneurship for the satisfaction of human wants. Production department is the heart of Havmor Unit, as the main function of Havmor is to produce the products and supply to the consumers according to their needs and taste. Thus, in Havmor production department is the most important department.

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ORGANISATIONAL STRUCTURE
Vice President Operation Assistant General Manager Production Manager Supervisors Labors
Production is the lifeline of any business unit; hence production department plays an important role of vital importance in any industrial unit as in Havmor group. Vice President is the head of the department, followed by Assistant General Manager, Production Manager, Supervisors and at last Labors.

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MAIN PRODUCTS OF THE COMPANY

Ice creams found in different styles like:
King Cones Big Cups Small Cups Party Pack Family Pack Juices Candy Dolly Kulfi Corner Roll cut Novelties Cassata Premium Pack Kids Special

Havmor Special, etc.

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RAW MATERIAL USED

There are various types of raw materials that are used in Havmor during Ice Cream making process. Major Raw Materials used for making Ice Cream are: Milk Cream Skim milk powder Dry fruits Fresh fruits Flavours Sugar Stalulizer Emulsifiers agents Chocolates All the materials used in process are managed by Storage Department. And their quality is checked by Research and Development Department.

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PRODUCTION PROCESS
Pasteurize Milk (8-10C) Dump Tank Milk Pump Batch Pasteurize (75C for 15 Mins) Milk Storage Tank Milk Pump Batch Pasteurizer Milk Pump Atomogeniser Two Stage I. 2500 Psi II. 500 Psi Mix Chiller (24C) Aging VAT

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Aging VAT

Batch Freezer Candy Tank I/C Vessel Flavour (-20C)

Flavour Tank

Addition of Colour & Candy Hardening Tunnel Continous Freezer Cup Filling (33C)

Cone Filling Machine Machine Chocolate Coating Tank (-4.5C) (-4.5C) Packing Table Packing Table Hardening Tunnel To Cold Storage (-35C) To Cold Storage (-2.5C)

PackingTable Hardening Tunnel

To Cold Storage (-25C)

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The Process for the Basic Ice Cream Mix

Pasteurization Tank:Here the raw materials like milk, cream, powder, etc are mixed. Milk is pasteurized here. Mixing of Pasteurizers is done at 8-10C, Butter is melted at 40C, All ingredients at 55C, Sweetening agent is added at 65C, and pasteurization is done at 75C. The mix is kept at 75C for 15 mins and then filtration of mix is done.

Homogenator:After being pasteurized at 75C, the mix is transferred to this tank. Here, this mix is kept under the pressure of 50 cem square. This increases the viscosity of the mix. Here the break down of the fact glucose is done up to micron size. The Homogenator tank is the heart of the process.

Chiller:In the chiller, the chilling of the mix is done from 75C to 24c.

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22

Storage Tank:After being thoroughly mixed, the mix is stored in this tank. The mix is stored here is called the basic mix and is used for all ice creams. The basic mix is taken to each section for different types of Ice Creams, whether it is cup, candies, cones, etc.

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The Process for the Ice Cream Production

The tank through which the ice cream is carried out should be cleaned every time before getting any new flavour. The creaming process is done by Service and Engineering Department. The process of cleaning any equipment is different from each other.
*

The general process of cleaning is as follows:

Flushing with tap water. Cleaning with hot water at 10C for 10 to 15

mins. Alkali cleaner for 20 mins at 10C. Flushing with hot water. Senttice the whole equipment with hardaphire solution of 200 ppm for 20 mins.

Flavouring Tank:Required quality of basic mix is transferred in Flavouring tank additions of essence and Flavouring Color is done as per the recipes of particular ice cream.

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Continuous Freezer:After starting the continuous freezer, the ice cream will come out within 25 seconds at the temperature of 8C to -5C. If the recipes includes additions of nuts it is done through fruit feeder which is outside the continuous freezer and before the final place of coming out of the ice cream and in case of Sundays different flavor is added through nozzles through which more than two flavors can be added. After coming out from continuous, the ice cream is picked into different boxes, cups, etc. This process is done manually.

Hardening Tunnel:These packets are kept in hardening tunnel to achieve ITC.

Cold Storage:After achieving ITC in hardening tunnel, ice cream is transferred in to cold storage and taken as per the market demand. Yummy Ice Cream is now ready to dispatch.

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STORES MANAGEMENT
Stores management is necessary for any scale of unit because whenever the need arise it could be provided by the store department. There is a separation for storage in Havmor. The departments like production, research and development department are required to inform to the storage department whenever the need arises and on this basis purchase requisition is made and given to purchase department.

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26

PLANT LAYOUT
Layout problems are fundamental to every type of organization and are experienced in all kind of marketing. Housewife must arrange her kitchen; retailer must arrange their facilities, not only the departments within the factory but also the plant, stores and services so as to achieve flow of products. Once a decision about location of a plant has been taken, next important problem before the management is to plan suitable layout for the plant. Efficiency and performance of good machines and sturdy buildings depend to a great extent on the layout of the plant. According to James Handy, Layout identically involves the allocation of space and arrangement of equipments in such a manner that overall operating cost is minimized.

There are mainly 3 types of layout

1. Process layout or layout by function 2. Product layout or line production 3. Fixed position layout.

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Process layout or layout by function:

This is typical job-shop type of production, where the equipment performing similar operation is grouped together. In this layout more emphasis is given to specialization or functional homogeneity on the various components of the system. All operations of similar nature & grouped together in the same department or part of the factory. E.g.; grinding machine is located in any are, etc.

Product layout or line production:

The equipment here is laid out according to the sequence in which its used for making the product for this type of layout if two products are tobe made is called for two separate layouts.

Fixed position layout:

In this layout, the material remains in a fixed position, but the machinery tools, workmen, etc. are brought to the machines.

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HEALTH & ICECREAM

ICE-CREAMS:
The most Indulgent face of Nutrition. A Cup of good Ice-cream probably features the most varied blends of nutritious elements in life. Carbohydrates (Rice & Wheat), Fats (Oil & Ghee), Vitamins & Minerals (Vegetables & Milk), Proteins (Pulses) all are blended into a lip-smacking cup. What is more, Ice-cream is the most delicious form in which children can consume these nutrients. In fact, they would ask for it, & relish it without parental prompting. Those who want to build better health can regularly consume high quality Ice-creams as part of their daily diet. And those who are on a weight-loss diet, can use them as delicious & nutritious hungerquencher, they will give them just the right amount of nutrients, but keep then from accumulating too much of anything by taking the edge off the need to eat a lot.

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NUTRIENT CONTENT VANILLA ICE-CREAM:

FAT M. SNF (GMS) SUGAR (GMS) CALORIES PROTEIN (GMS) CARBOHYDRATES (GMS) TOTAL MINERALS (GMS) CALCIUM (MG) PHOPHROUS (MG) POTASSIUM (MG) IRON (MG) VITAMIN A VITAMIN B1 (MG) VITAMIN B2 (MG) NIACIN (MG) VITAMIN C (MG)
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OF

100GMS

13 GMS. 11 GMS. 15 GMS. 196.7 4.0 20.7 0.9 122.0 105.0 90.0 0.1 492.0 0.04 0.23 0.1 1.0

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INDEX
Sr no.
1 2 3 4 5 6 7 8 9 10 11 12 13

Particular
Introduction Organizational structure Recruitment, selection & Induction Training & Development Promotion, Demotion & Transfer policy Grievances handling procedure Performance appraisal Personnel records Wages & Salary Administration No. of employees Provident fund scheme Employees benefits & salary Trade union

Pag e no.
36 37 38 41 42 44 45 46 47 48 49 50 51

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INTRODUCTION
As the term applies, personnel management is the management of human resources in an organization and is concerned with the creation of harmonious working relationships among its participants and bringing about this utmost individual development, such management is concerned with leadership in both groups and individual relationship and personnel management. It effectively describes the process of planning and directing the applicants, development and utilizations of human resources in employment. In fact, personnel management undertakes all those activities, which are concerned with human elements in an organization. Whatever functions are listed therein, the main objectives of these functions are to bring together expertise in a scientific way and to create that motive, a group to achieve its goals economically, effectively and speedily. According to Havmor, HRD plays a major role in conducting specialized training programs, encouraging innovative ideas, inoculating willingness to accept change and rewarding out this with an incentive package. They believe that their plants are most valuable assets who have made Havmor what it is today, and it is they who will take them for beyond the horizon, the days to come.

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ORGANISATIONAL STRUCTURE
Managing Director General Manager Assistant Manager Executives Officer Assistant
It caused of the assignment of specific functions to designated persons department with authority to have them carried out and their accountability to management for the result obtained. It seeks to achieve maximum effort by decentralized, where by the power of decision is brought down as near as possible to the individual concerned.

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RECRUITMENT, SELECTION & INDUCTION

The recruitment intimately connected system. & selection process is with overall manpower

It is the primary duty of the personnel department to procure and maintain the adequate qualified working force of various personnel necessary for running the organization. It is very important function even for the establishment and development of business.

RECRUITMENT:
Recruitment refers to attempt of getting interested applicants and providing a pool of prospective employees so that we can select right person for right job. In Havmor the recruitment sources can be classified into two broad categories. For recruitment of skilled workers, advertisement is given in newspapers and unskilled workers are recruited from local areas.

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SELECTION:
Selection is the process in which candidates for employment are divided into two classes those who are to be offered employment and those who are not.

The selection process of Havmor Co. is done as under

* * * *

Preliminary Interview. Application. Interview. Final Selection.

Following are the broad headings under which the qualities desirable for a suitable candidate may be grouped. * Educational and technical qualifications * Intelligence * Responsibility involved and initiative required * Ability to command, to obey * Health and physique * Ability to work in the conditions in which the job is performed.

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INDUCTION:
Induction refers to the job and organization. The purpose is to make the employees feel at home and develop a sense of pride in the organization and commitment to the job. Induction is a technique by which a new employee is rehabilitated into the changed surroundings and introduced the practicing policies and purpose of organization. Induction of employee is done by every department for every week after selecting of 2 to 3 days.

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TRAINING & DEVELOPMENT

TRAINING:
Training is the organized procedure by which people learn knowledge or skill for a definite purpose. In this modern era, training is very important. In Havmor Ice-creams, there is also modern type of machines which follows modern technology. Many workers dont know to use them. So, they teach them how to use machineries.

DEVELOPMENT:
Development is an organized and planned process and program of training and growth by which individual manager or executive at each level of management hierarchy gains and applies knowledge, skills, insight and attitudes to manage workers and the organizations effectively. In Havmor Group of Co. HR coordinates the training. Sometimes staff is send outside the company for training purpose or experts are called up to give training to the employees. Company also gives training to their workers according to the job. Generally, training for 7 days is given to workers.

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PROMOTION DEMOTION & TRANSFER POLICY

PROMOTION:
Promotion is the advancement of an employee to better job better in terms of responsibility, more prestige or status, greater skill, higher grade & salary and increased privileges, etc. Havmor Co. also gives promotion on the basis of all over performance basis. Company also considers merit basis and seniority basis. Top level management gives promotion.

DEMOTION:
Demotion has been define as the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility. In other words, demotion refers to the lowering down of the status, salary & responsibility of an employee. Havmor Co. gives demotion when any employee is not able to do his work by any reason.
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TRANSFER:
Transfer refers to changes in jobs that involve little or no change in status, responsibility and pay. Havmor Co. does transfer to their employee. Employees are transferred from one shift to another shift, as per the requirement.

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GRIEVANCES HANDLING PROCEDURE

Grievance is difficult to define, personnel experts however, have attempted to distinguish dissatisfaction, complaint and grievances. Generally speaking, dissatisfaction to any staff or filling of discontent, whether it is unexpressed or explicitly expressed. A dissatisfaction which is orally made known as complaint becomes a grievance when this dissatisfaction, which is usually related to work is brought to the notice of management. A complain by an employee and claiming unfair treatment. In all the companies grievances always exist irrespective of size and unit. In some employee have complaints against employees. The grievances may be real or imaginary valid or invalid. In Havmor, there is specific grievance handling procedure. Whenever, there is any grievance, the employees meet first to the supervisor and if not solved then employees meet to the concerning department head and management tries to solve the grievance by considering the acceptable demand of the employees and the workers also keep themselves ready to achieve the targets disclaimed by the management.
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PERFORMANCE APPRAISAL
In the organization context performance appraisal is a systematic evaluation of performance by supervisors or other familiar with their performance. It is also described as merit rating in which one individual is ranked or market in comparison to others. Performance Appraisal is a systematic evaluation of the individuals with regard to his/her performances on the job and his potential for development. In Havmor, the performance appraisal is done by the superior or superior will fill the form, it is done once in a year and accordingly increase in salary is given. Motivation to workers done once in 2 months.

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PERSONNEL RECORDS
A Personnel record is piece of writing in a chart or which provides ready information and which preserve evidence for future reference or use. Havmor Co.s style of keeping personnel record is very scientific and systematic. The company keeps one file for each employee. In this file, you can get each & every information about employee. The information like wages, salary, training & development, recruitment & selection, pension, provident fund, discipline, past experience, birth date, blood group, qualifications, behavior of employee in the company, etc. are noted in this file.

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WAGES & SALARY ADMINISTRATION

Wage and salary administration is necessarily the application of a systematic approach to the problem of ensuring that the employees are paid in a logical, equitable and fair manner. Its basic purpose is to maintain and establish wage and salary structure. Its secondary objective is to establish equitable labor cost structure. It is concerned with financial aspects of needs, motivation and rewards. Havmor Co. gives wage and salary to the workers according to their work and ability. In this company, wages and salary are given monthly to the workers. Sometimes, company gives wages on the basis of contract to the workers. Salary to the clerical, administrative and professional employees is paid on the 1st of every month. In Havmor, till now there is no child labor. The average eages provided to labor is Rs. 2400 per month.

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TOTAL NUMBER OF EMPLOYEES

The company has total staff strength of 420. Which includes 200 unskilled workers and 220 skilled. The company recognizes the important role that its employees used to play the growth of various business activities.

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PROVIDENT FUND SCHEME

The Provident Fund Act was passed in 1952. A special reserve fund was made for making the payment to out going members. The Provident Fund Act 1952 was amended in 1971 to provide for the benefit of family pension to the members of deceased in case of their death, while in service. In Havmor Group, company provides provident fund to its employees. The scheme covers each and every employee of the company. PF @ 12% is given to employees in that 8.33% is pension and 3.67% is PF. It affect instantly to financial condition to each and every employee. It makes bright future for employees.

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EMPLOYEES BENEFITS & SERVICES

The services or benefits, which are given to the employees more than the salary comes under employees services scheme. In Havmor following benefits are provided to the employees: Uniform. Safety Facility. Medical Facility. Social Welfare. Canteen Facility.

Employees are also provided previous leave, casual leave, and sick leave. Employees in Havmor are also provided the benefits like PF, ESI Scheme, etc. Safety facility is provided to workers as in food items utmost safety is required and medical check up to the workers is also done as and when required.

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TRADE UNION
The scenario of exploitation of employees by employers led to the birth of unions and introduced the ear of government regulation and control over employment relationship. Now, unions are a part of modern industrial societies. There are various explanations about the place and role of unions. These points to a commonalty through union seek to pursue and further the interests of employees as a collectively. A track union is any combination of persons, whether temporary or permanent, primary for the purpose of regulating the relations between workers and workers, and for imposing restrictive conditions on the conduct of any trade or business, and includes the formation of two or more trade unions. Section 2 (B) of Trade Union Act, 1920. In Havmor, the relation of industry with trade union is good. It generally deals in collective bargaining for doing negotiations.

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INDEX
Sr no .
1 2 3

Particular
Introduction Organizational structure Responsibility function & Authority of Individuals at different Hierarchy levels Assigning territories Product planning Product mix Marketing research Market segmentation Distribution channel Physical distribution Packaging & Transportation

Page no.
54 55 56

4 5 6 7 8 9 10 11

58 59 60 61 62 64 66 69

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INTRODUCTION
Marketing is so basic that it cannot be considered a separate function. Marketing has been defined in various ways. The definition that serves are purpose by which individuals and groups obtain what they need and want through creating, offering and exchanging products or value with others.
*

Marketing is a total system of business, an on going process of:

Discovering and translating consumer needs and desires in to products and services. Creating demand for these products and services. Serving the consumers demand with the help of marketing channels, and then in turn Expanding the market even in the face of keen competition. Marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

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ORGANISATIONAL STRUCTURE
General Manager
(Sales & Marketing)

Senior Sales Manager Area Sales Manager Sales Executive Sales Coordinator

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Responsibility functions & Authority of Individuals at Different Hierarchy Levels

General Managers Responsibility & Authority
* * * * *

Sales Administration. Advertising and Media. Product Management. Recruitment and Selection at higher Authority Level. Designing Sales Promotional Programs.

Responsibilities & Authority of Senior Sales Manager

Generate Sales. * Assigning targets. * Recruitment. * Maintaining relationship with Distributors and C&F Agents. * Assisting in designing of Promotional Programs.
*

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Responsibilities & Authority of Sales Executives & Sales Coordinators

* * * * *

Appointing Distributors / Dealers. Provide Machines. Handling Dealer / Distributor Complaints. Give the promotional tools to the Dealers & Distributors. Dealer / Distributor Communication.

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ASSIGNING TERRITORIES
Generally, past figures are taken as base for sales forecast. Some percentage will be taken on last year Sales & Budgeting sales figure will be decided. Moreover, it depends on certain other parameters also like Advertisement in that particular territory. Market Development Opportunity, Market Size, Competitors Activities, and Support from HO. So its a combination of all the parameters. The Sales Budget also depends on the companys strategy. After deciding the Sales forecast, they derive sales budget. They allocate budget for promotional schemes, for incentives to the sales people, advertising, etc.

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PRODUCT PLANNING
Planning is to decide in present, what to do in future? Havmor Co. also develops new products and steps of product development are as under

Research for a new product sometimes is based on seasons & market demand. of product before 3-4 months in

Planning advance.

Quality control department check the product quality. Product management department approves a new product. Product planning for promotions. Final label of product. Commercialization of new product.

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PRODUCT MIX
A product mix is a set of all products and items that a particular seller offers for a sale. A companys product mix has a certain length, width and depth.

Product Mix of HAVMOR

Ice Cream Cups Small Cup Sundaes Novelti es Family Packs Cones Big Cup Party Packs Bulk Packs Frozen Desert Food Item

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MARKETING RESEARCH
Marketing research is the systematic collection, design, analysis and reporting of data and finding relevant to a scientific marketing situation facing the competition. Process and marketing research followed in Havmor.

Defining the problems and research objectives. Developing the research plan. Collecting the information. Analyzing the information. Presenting the findings.

Havmor Company does marketing research through his sales staff. Sometimes Havmor Company appoints marketing intelligent staff for research in different areas.

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MARKET SEGMENTATION
Market Segmentation is a full larger group having similar wants. Segmentation is consumer oriented marketing strategy. Market segmentation gives the formal segmentation to the fact that wants and desires of consumers diverse and we can orient specific category or the segment of the market, so that supply will have the best correlation with demand. Varied and complex buyer behavior is the root cause of market segmentation. Market consists of buyers and buyers differ in one or more respects. They may differ in their wants, purchasing power, geographical locations, buying practices. Any of these variables can be used to segment a market. The ice cream market following three ways: is segmented in

Basis of flavors:
Viz. Vanilla, Strawberry, Chocolate, Mango, Butter Scotch, Kesar Pista, etc. Vanilla, Strawberry and Chocolate together account for about 70% of the market followed by Butter Scotch and other fruit flavors.

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On the basis of stock keeping units / packaging:

1. Cones.

2. Cups. 3. Sticks or Candies. 4. Take away.

On the basis of consumer Segment:

On the basis, the market is divided into four segments, 1. Impulse segment. 2. Retail. 3. Institutional / Catering. 4. Parlors. Retail and impulse together account for 70% of this market.

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DISTRIBUTION CHANNEL
In the field of marketing, channels of distribution indicates the routes of pathway through which goods and services flow or move from producers to consumers. The route of channels of distribution includes the manufacturer and the consumer as well as all intermediaries. These components are linked in the channel system by one or more of the marketing flows, such as transfer of title of ownership, physical distribution of merchandise, transfer of title of ownership, physical distribution of merchandise, transmission of marketing information and the flow of money in the form of payment of prices and other dues.

The channel of distribution of Havmor is as follows: Manufacture C & F Agents Distributors Dealers & Retailers Customers

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The above channel strategy defines the channel members. The finished goods first go to C&F Agent is not available then the finished goods directly go to Distributors. HO (i.e. Ahmedabad Office) constantly watches the moments the orders given in Dispatch Department by various C&F Agents and Distributors. Havmor has 32 distributors and 4000 retail outlets. The network is kept alive by large flat of refrigerated vehicles; refrigerated equipments and retail freezers are sources from world leaders in technology, so as to deliver quality products to the consumers, which is a commitment at Havmor. Marketing Department also coordinate with Dispatch Department to get the order from C&F Agents and Distributors, and try to see the moments of dispatch that orders as early as possible by clubbing various distributors in one route. And at last dealers get the goods from the distributors.

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PHYSICAL DISTRIBUTION
The marketing process is not complete simply by creating superb product and by creating the consumer through aggressive salesmanship. Delivering the product to the consumer at the right time and right place is equally important function in marketing. In process of marketing, this vital function is called physical distribution. Physical distribution means the process of delivering the product to the user or consumer promptly, safely and in time. The major components distribution of Havmor: Warehousing Inventory Order processing of physical

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WAREHOUSING:
As ice cream is a perishable product and it must be kept in cool place to maintain its quality for few days, Havmor has cold storages at different ends. These ends are factories, C&F agents, Distributors and Dealers. The temperature kept in these storage houses is as low as 25C.

INVENTORY:
For the raw material, Havmor keeps the inventory. The inventory of the packaging material is kept as low as possible and according to the demand forecasted and growth rate of the market. Ice cream is product of impulse category that requires proper storage, to keep it in a proper condition. The production and consumption system also such that, the production is done through the whole year and main demand is in summer season. So every company has to store ice cream properly. Company has enough storage facility at their all plants, and all C&F agents have their own cold storage facility, so they keep the stock as per their requirement i.e. at the time of promotional scheme period or in summer they maintain high stock, the C&F agent carry the stock in bulk and they supply the ice cream to distributors or dealers, who also have proper freezing facilities.

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ORDER PROCESSING:
Havmor has defined MOQ (Minimum Order Quantity) for the distributors to make order to the company. As far as order of the dealers are concerned that is the headache of the distributors. Here, the job of the Havmors sales staff is to assist the distributors is selling the ice cream. Havmor states their physical distributors objective, getting the right goods to the right place. No physical distribution system can simultaneously maximize customer service and minimize distribution cost. Maximum customer service implies large inventories, transportation and few warehouses. The designing distributors system is to study what the customer wants and what competitors are offering customer, interested in several things such as on time delivery. Havmors willingness is to meet customer needs, careful handling of merchandise to take back defective goods and re-supply them quickly and to carry inventory for customer.

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PACKAGING & TRANSPORTATION

Packaging:
Ice cream consumers in India are generally children and young people. To attract these consumers ice cream manufacturers try hard to make their packaging attractive. Packaging plays a large role in marketing of ice cream products. Many different packing, sizes and designs can be chosen along with type of packaging material. Ice cream is marketed in three types of packaging.

The most popular is a cup of 100-150 ml sold @ Rs. 8-15 price range. Ice creams at this price range are generally brought for immediate consumption. They are available everywhere from big super market to local retailers. Bar, sticks and Cones represent another ready-toeat market and are priced @ Rs. 5 and is very popular with kids and forms major portion of the ice cream sales. Party pack and Family pack are in much use now a days. These are used for parties and in restaurants. Though outside attractiveness is not
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very important but the size of the pack and handling comfort is important.

Transportation:
Ice cream requires very low temperature in terms of -25C, so the Van used for the transportation is having the chillers. Company is acquiring Van on the contract basis.

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INDEX
SR .N O
1 2 3 4 5 6 7

PARTICULAR
Introduction Sales organization Sales Budget Pricing policy Channel of distribution Advertising Sales promotion

PAGE NO.
73 74 75 76 77 78 79

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INTRODUCTION
The sales manager is the head of the sales department and he is guided in his policy by the managing director of the company. Thus, the sales manager must be a man of initiative and ready to propose new ideas as opportunity comes. He must be active, energetic and persistent in order to cope up with the work involved which is sales promotion. Exploring new possibilities of obtaining customers, market and new goods. He must be energetic and put new life and interest in his sales staff. Sales executive should be a good judge of human nature, a good mixer and know how to handle men not only his customers but also his competitors in the market. He must be a good organizer and know the psychology of the group to whom he serves. It is true that a sale is the last activity of an organization but it is not the less important function. The sales executive in additional to being competent the techniques and procedure of selling the product, is an executive directing the activities of others. He has to co-operate with the rest of the staff for new products and new uses of the commodity.

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SALES ORGANISATION
The sales department should co-operate with design department so that the product designed should meet the exact requirements of the customers and the important factors like efficiency,sturdity,low cost of maintenance, safety for the operator ,ease of handling and good luck are to be achieved and the sales department has to cooperate with the production department to see that the quality is maintain and the rate of production is according to the schedule with planning department to prepare the sales programmed on which the entire planning will be based ,with the accounting department to bring the prices down and there by to increase the turn over and fix selling price. With the accounts dept. to give complete data and with the personnel dept. to procedure the efficient salesman.

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SALES BUDGET
Sales forecasting Sales Budget: & Devising

As Ice Cream is perishable good and it requires proper freezing to maintain Proper quality, which is very costly. So sales forecasting is very important to reduce the cost of over production and maintenance.

Havmor considers following factors for forecasting the Sales:

Observing Market Trends. Past figures related to consumption pattern. Deciding the future strategy. Using the above factors, experts in the sales field use their expertise and give their opinion for the next years sales. Thus, Havmor use Jury of Expert Executive Opinion.

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PRICING POLICY
A price policy is the standing answer to the firm to recurring problem of pricing. It provides guidelines to the marketing manager to evolve appropriate pricing decisions. There are many methods of deciding pricing. It depends on the organization that which method it wants to adopt.

Policy on pricing relative to costs:

Havmor follows Full Cost / Cost plus pricing. Full Cost pricing, no sale is made at a price lower than that covering total costs, including the variable costs and allocated fixed costs.

For Example,
X- Cost of Production X+Y- Cost of goods sold X + Y + 6% - Cost of goods sold + distributors Margin X + Y + 6% + (12% to 20%) = MRP Dealer margin added to above (Consumer Price)

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CHANNEL OF DISTRIBUTION
Every producer seeks to link together the set of marketing intermediaries that best fulfill the firms objectives. This set of marketing is called the channel of distribution. A distribution system is key of external resources. Normally it takes years to build and it is not easily arranged. It ranks in importance with key internal resources such as manufacturing, research, engineerings and field sales personnel and facilities. The channel of distribution of the company has the following way:

Manufacturer Agents Dealers Retailers Customers

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ADVERTISING
It is defined as any paid form of non-personal presentation and promotion of ideas, goods and services by identified sponsor. It is impersonal salesmanship for mass selling, a means of mass communication. Havmor Company has used many media of advertising such as press media, which includes newspapers and magazines; outdoors advertising that includes posters, boards and electric display, multimedia including web site, etc. Product boreal magazine They have attended an exhibition in world level and in India more than 50 times. In product today magazine Tender world In industrial express Machine tools Local channels The firm is spending more than 2 lakes amount in advertising.

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SALES PROMOTION
Sales promotion is a vital bridge or a connecting line removing the gap between personnel selling and advertising the two wings of promotion. The sale of a product has to be promoted or encouraged through a No. of influences at the point of purchase where retailers and prospective customer meet face to face. Sales promotion may stimulate boost consumer denying at the point of sale or improve dealer effectiveness at the retail outlets. There are various sales promotional tools such as:

Samples, coupons. Price packs. Premiums. Contest. Free trials, Price off. Allowance of goods.

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Havmor company has done all promotional activities with a view to increase sales of products and to attract a new customer to companys product. Company has provided many offers such as Buy one- Get one free, Buy family pack and get attractive gift free, etc. Company has also done dealers promotional activities include cash discount on purchase, display and advertisement allowances, etc.

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INDEX
Sr n o .
1 2 3 4 5 6 7 8

Particular

Page no.
83 84 85 86 87 88 89 90

Introduction Financial Review Organizational Structure Financial planning Capitalization Capital Structure Depreciation policy Management of working capital

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INTRODUCTION
Financial Management is an integral part of overall management. It is not totally dependent area. It draws heavily on related disciplines and fields of study such as economics, accounting, marketing, production and quantitative methods. The term nature as applied finance refers to its relationships with closely related fields of economics and objectives. In the early years of its evolution it was treated synonymously with the raising of funds. Now in addition to it is procurement of funds, efficient use of resources is universally recognized.

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FINANCIAL REVIEW
In spite of staff competition, particularly in Ice Cream Industry, Havmor Companys TOTAL SALES at the end of the financial year 2006-2007 is Rs. 6167 Lacs earned during previous year is Rs. 4929.8 Lacs. Company has earned the Gross Profit of Rs. 404.17 Lacs before depreciation and financial expenses during the year ended on 31st March 2005 as compared to 424.25 Lacs earned during the previous year. Net Profit is Rs. 31.8 Lacs during the year ended on 31st March, 2005 as compared to Rs 55.35 Lacs earned during the last year.

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ORGANISATIONAL STRUCTURE
Finance is the foremost requirement of any firm, finance decision constitutes one of the critical and key decisions of any department. The duty of General Manager is to handle accounts and overall co-ordination of finance department. All major decisions are taken by Managing Director. Plans are made by General Manager and it is approved by Managing Director. Managing Director is responsible for any kind of the result to the Directors of the Company.

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FINANCIAL PLANNING
Finance is an important function of business. The application of planning to the function is financial planning. It involves the policies, determination of objectives and procedure relating to the finance function. Financial planning is an important function of a financial manager whether a business is big or small this function has to be performed. It is necessary to do financial planning for an existing as well as new business. A financial plan is a statement estimating the amount of capital and determining its compensation and another important aspect of financial plan is to determine the pattern of financing. Before raising finance it is essential to make estimates for long term as well as short tern financial needs. Long term financing is generally needed for fixed capital requirement i.e. purchase of fixed assets. Short term finance is generally needed for working capital requirement i.e. marketable securities, debtors, etc. In Havmor, the financial planning is done for long tern or short term financial requirements. Financial planning is necessary to reduce the cost of finance and all the long term and short term finances is raised through family funds and overdrafts. The
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requirement of all the long term is also fulfilled through bank as and when needed.

CAPITALISATION
The term capitalization refers to the process of determining the plans if financing. It includes not merely the determination of the quantities of finance required for a company but also the decision about the quality of financing. Capitalization includes following aspects: Estimating the total amount of capital to be raised. Determining the types of securities to be issued. Determining the composition or proportion of the various securities to be issued. Capitalization comprises of a companys ownership capital, which includes capital stock and surplus in whatever form it may appears and borrowed capital which consists of bonds or similar evidence of long term debt. In Havmor, the capitalization includes both the aspects i.e. short term as well as long term.

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CAPITAL STRUCTURE
In order to run and manage a Company, funds are needed right from the promotional stage up to end. Finance plays an important role in companys life. If funds are inadequate, business sufers. It is therefore necessary that correct estimate of current and the future need of capital be made to have an optimum capital structure, which shall help the organization to run its work smoothly and without any stress. Estimation of capital requirements is necessary, but the formation of capital structure is important. The capital structure is made up of debt and equity securities and refers to permanent financing of a firm. It is composed of long term debts, preference share capital, and shareholders fund.

Capital structure of Havmor as on 31.03.2007 Particulars (Lacs)

Amt
359.5 980.5 1525 383.5

Share Capital Reserves and Surplus Secured Loans Unsecured Loans

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DEPRECIATION POLICY
Depreciation is an expense item. It is charged on fixed assets. Fixed assets are those which are of material value, meant for resale and having fairly long life and are used in the business. Methods of depreciation are as follows:

Straight line method. Diminishing balance method. Annuity method. Depreciation fund method. Insurance policy method. Depletion method. Machine hour rate method.

In Havmor depreciation is on Fixed Assets is provided on Straight Line Method.

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MANGAMENT OF WORKING CAPITAL

Capital required for a business can be classified under two main categories.
1. 2.

Fixed Capital. Working Capital.

The concept of working capital is further divided into two broad parts they are

Gross Working Capital. Net Working Capital.

Gross Working Capital =Total Current Assets Total Current Assets= 2702.4(Rs in Lacs) Total Current Liabilities= 1097.7 (Rs. In Lacs) Net Working Capital= Current Assets Total Current Liabilities = 2702.4 1097.7 (Rs. In Lacs) = 1604.7 Lacs

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SWOT ANALYSIS
Strengths
Strong market in Gujarat. No. 2 in Gujarat Varieties of Ice Creams Experience of more than 60 years

Weakness
Less use of advertising medium Lack of Professionalism Prices are somewhat high as compared to Amul.

Opportunities
Ability to increase production due to installation of new technology To sell their Ice Creams in other states

Threats
Increasing number of competitors Increasing demand of Amul

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FUTURE PLANS
Havmor is adopting a consumer oriented strategy as far as the price factor is concerned, where in the priority was on passing more and more benefits to ultimate consumers. All the benefits accruing out of economies of scale were passed to consumers in the form of value for money offers like Buy one get one free. The overall broad strategy of increasing the consumption was supported by appropriate promotion and market support. The selection of media and communication strategy was done with an objective of achieving the broad objective growth by growing the market.

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SUGGESTION
After going through practical training in Havmor for making the analytical report of a company, I would like to conclude some suggestions in order to achieve the targets and to make its consumers brand loyal. To decrease the cost of production in order to compete the competitors. To improve the channels of distribution so that consumers gets the best taste. Less sales promotional tools should be used, as too much of sales promotion adversely affects the reputation of company. More marketing research is required in order to know the taste of consumers.

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CONCLUSION
After visiting Havmor, it seems that Ice Cream is the King of Gujarat. I felt glad of being a part of it. The visit to such a huge and reputed industry has improved my practical knowledge of working in industry and its various departments. Havmor is an industry that is very well equipped by the latest technology and efficient human resource. I wish them very best luck for future.

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Sr o.
1.

Title of

Author Publicat ion

C.B. Himalaya

N the book
Personnel

BIBLIOGRAPHY
management Memorial M.M.Varma & R.K. Aqarwal M.Y. Khan & P.K. Jain M.C. Shukla
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Publishing House King book Educational Publishers Tata McGraw Hill Publishing co. ltd. S. Chand & Company

2.

Kings marketing mgt. [2nd Edition]

3.

Financial mgt. [3rd Edition] Business

4.

96 organization

& management

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