an Internship Report on

Bola Raghavendra Kamath & Sons Kukkundoor, Karkala

Submitted By

RAVIRAJ BHAT

4MT17MBA49

In partial fulfilment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr. Jayashri Shetty Mr. Jayavanth Kamath
Department of Business Administration Partner, Bola
MITE, Moodbidri. Raghavendra Kamath
& Sons, kukkundoor,
Karkala.

Department of Business Administration

MANGALORE INSTITUTE OF TECHNOLOGY AND ENGINEERING MOODBIDRI
(An ISO 9001:2015 certified institution)

October 2018
 MANGALORE INSTITUTE OF TECHNOLOGY & ENGINEERING

(An ISO 9001:2015 Certified Institution)

(A unit of Rajalaxmi Education Trust)

Affiliated to V.T.U, Belgaum, Approved by AICTE, New Delhi.

CERTIFICATE

This is to certify that Raviraj Bhat bearing USN 4MT17MBA49, is a bonafide student
of Master of Business Administration course of The Institute 2017-19, affiliated to
Visvesvaraya Technological University, Belgaum, Internship report on “Bola
Raghavendra Kamath & Sons Kukkundoor Karkala” is prepared by him under the
guidance of Dr. Jayashri Shetty, in partial fulfilment of the requirements for the award
of the degree of Master of Business Administration of Visvesvaraya Technological
University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of Principal

 Declaration

I, Raviraj Bhat, hereby declare that the internship report entitled a report on Bola Raghavendra
Kamath and Sons Kukkundoor, Karkala is prepared by me under the guidance of Dr.Jayashri
Shetty, Department of Master of Business Administration, Mangalore Institute of
Technology and Engineering, Moodbidri and external assistance by Mr.Jayavanth Kamath,
Partner Bola Raghavendra Kamath and Sons Kukkundoor, Karkala. I also declare that this
internship report is towards the partial fulfilment of the university regulations for the award of
degree of Master of Business Administration by Visvesvaraya Technological University,
Belgaum. I have under gone internship for a period of 4 weeks. I further declare that this report is
based on the original study undertaken by me and has not been submitted for the award of any
degree/diploma from any other University/Institution.

Date:

Place: Raviraj Bhat

 Acknowledgement

I, Raviraj Bhat wish to express my deep sense of gratitude to all the concerned people who have
helped me, to complete this report successfully.

I am very thankful to Visvesvaraya Technological University, Belgaum for this wonderful

opportunity to undertake the internship study as a part of the fulfilment of Master of Business
Administration degree.

I am highly in debted to Mr.Jayavanth Kamath, Partner Bola Raghavendra Kamath and

Sons Kukkundoor, Karkala for his advice and suggestions at various stages in completing this
report.

I express my special gratitude and thanks to Dr.Jayashri Shetty, Department of Business

Administration, for her valuable guidance and encouragement while doing this report.

Raviraj Bhat
 Table of Content

Chapter Page No.

Title
No.

Introduction about internship 1-2

1
Industry Profile 3-4

2 Organization profile: 5-18

2.1 Back ground 5-7

2.2 Nature of business 7

2.3 Vision mission, quality policy 8-9

2.4 Product profile 9-14

2.5 Ownership pattern 15-16

16-17
2.6 Achievement

17-18
2.7 Future growth and prospects

3 McKinsey’s 7S framework 19-31

4 SWOT Analysis 32-33

5 Ratio Analysis 34-39

6 Learning experience 40-41

Bibliography 42-43

Annexure 44-45
 Executive Summary

The plant training for a period of 4 weeks was an attempt to have an exposure to practical
corporate world. In this duration, there was good exposure for learning day to day operations of
an organization. There was lot to learn from how head of the department deals with the
employees.

In the first part of the there is a detailed discussion on Cashew nut Industry in India. It considers
latest happenings in the industry. It also focuses its attention on opportunities for exporting
Cashew nut Industry. The Industry profile is followed by a detailed study of background and
inception of Bola Raghavendra Kamath and Sons, it consists Information about founders,
products and services, ownership pattern, infrastructure facility, competitors, future growth and
prospectus of the company.

The second part deals with application of Mckensy’s 7s frame work to the organization. Here the
organization structure and working of various departments is discussed in detail. With the help of
organization chart, authority and responsibility relation have been clearly indicated. It also deals
with the skill matrix in the organization; it clearly articulates how company trains its employees
to meet requirements. Also it provides information regarding decision making style. The strategy
adopted by the company to export goods to foreign countries is also discussed in the section. The
report also deals with the SWOT analysis of the company and covers the learning experience.
 Chapter 1
Introduction about Internship and Industry Profile
As the economy becomes more specific and target based in the case of employment, people
should have the knowledge to acquire and achieve something, which others cannot. Gaining
knowledge from colleges and universities are vital but students should explore their knowledge
with the practical application of the theories, which they studied. Real world experiences will
only possible for the students through internship programs. The internship program is designed to
availing and engaging students to experience with a scope of learning new things. In addition,
where they can use their insights and develop a career through the research.

The internship is a bridge between educational institution and the organisation. A student is
having an opportunity of studying how the theoretical aspects studied from the institution can be
applied in the organisation and what will be the difference between concepts studied and real life
experiences. The internship programme aims to provide the opportunity to consolidate their
theoretical foundation through practical experience. A major component of this experience is the
formation of a professional attitude. The students are expected to develop their personality and
capacity to adapt to, and handle challenging situation in the real business world.

Distinctiveness of Internship

 Internship leads to the intern’s individual development through challenging occupational

coursework.
 A typical and worthy extra-curricular activity that helps to develop credentials for the
semester.
 It is designed and planned through consultation with the college or university so as to fit
into the undergraduate practice.
 Internship involves closed direction or mentoring by a specialized expert.
 It includes work experiences that go together with classroom learning.
 It ends in an appraisal process at the wrapping up of the internship.
Industry profile

The cashew has a long history as a useful plant, but only in the present century it becomes an
important tropical tree crop. The earliest report of the cashew is from Brazil, coming from
French, Portuguese and Dutch observers.As it is known in cashew trade circle, cashew nut was
not the indigenous product of India. In World Trade the Cashew holds 2 nd rank among the tree
nut. About 400 years ago, the Portuguese brought in to Goa in India, from Brazil.Soares De
Soucer (1587) in his classis work on 16th century Brazil provides valuable information on the
Botany of the Cashew, a good description of the use of the cashew nut and a report that cashew
apples and juice were thought to have medicinal value.

Today, the major cashew producing states in India are Kerala, Karnataka, Tamil Nadu, Andhra
Pradesh, Goa, Maharashtra and Orissa. In the early stages of cashew production in India, it was
the fruit which was the considered valuable and it was only in the beginning of the century that
the commercially valuable cashew kernel, the kernel inside the nut, found favor among
consumers. Small quality of cashew kernels were exported from India even before the First
World War in 1914, but in those days the kernels were packed in wooden cases lined with
newspaper. Being highly susceptible to infestation, this mode of packing resulted in deterioration
in the quality by the time the kernels reached their destination. The real breakthrough came when
packing of cashew kernels in an atmosphere of carbon dioxide was introduced in the 1920s. This
process in which the air in the container is removed and replaced with carbon dioxide prevented
the development of infestation and made it possible for cashew kernels to be stored without fear
of deterioration in quality for long periods and enabled large scale shipments to be made to
various foreign countries.

Until the end of Second World War, exports however were small but the increase in exports after
1947 was indeed very rapid.
Current Scenario

The post-independence era of Indian agrarian sector has witnessed a tremendous growth in the
plantation sector and in Indian Commerce involving plantation produces and products. The
prominent plantation crops are Tea, Coffee, Rubber and Cashew. All the plantation crops are not
original to India but are introduced in the pre-independent colonial regimes that existed for
centuries.

India is largest producer and exporter of cashew kernels in the world. Nearly 50% of the world
export of cashew kernels is accounted for by India. Indian cashews are consumed in as many as
60 centuries all over the world, the major markets being the United States, the United Kingdom,
Japan, Netherland, Australia, Canada, Germany, Hong Kong, Singapore, New Zealand and
Middle East Countries. The Indian Cashew kernel is well acclaimed for its good quality, taste and
appearance.

Member of Cashew Export Promotion Council of India, who is manufacturers and Exports of
cashew kernels, are the major sources for cashew export from India. Indian cashew is available
with prominent imports from USA, Canada, Japan and Middle East Countries, Singapore,
Australia and UK.

Regular Shipping facilities are available from India to all ports of the world, the front runner in
carrying out shipments being the Cochin port. The other contributing ports are Tuticorin,
Mangalore, Madras and Bombay. Regular services of container ships are available from the
Indian ports on India-USA, India-UK/continent, India-Australia, India-Japan, India-Middle East
and India-Singapore routes.

Maharashtra, Orissa, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala are the major cashew
producing states among the 15 other state in the country. The domestic consumption of cashew or
the wonder nut, mainly used in many Indian sweets, pastries and gravies, would also grow in the
range of 8-10% in the current fiscal, according to reports. Of the total raw cashew nut only 20-
25% is the output of the kernel. India, which produces around 5lakh tones of raw cashew, imports
another 7lakh tones every year to meet the requirement of processing sector. The various cashew
kernels include cashew kernels (raw, salted or roasted), Cashew Nut Shell Liquid etc.
 Chapter 2

Organization Profile
Background and Inception of the Company:

B.R. Kamath and Sons is the vision of Late Sri Raghavendra Kamath who started this unit in
1958 in a rural area of Kukkundur. And this was the first unit started in the present Udupi district
and the first to start export of agricultural goods from this area.Bola Raghavendra Kamath and
Sons are the leading manufacturers and exports of Cashew Kernels and Cashew Nut Shell Liquid
(CNSL).This unit came into existent in the year 1958 with a production capacity of 7 bags (of
75kgs each) of raw cashew nut per day. Its founder Sri Bola Raghavendra Kamath had to his
credit several decades of association with cashew.They started exporting cashew kernels in the
year 1960, and have four decades of experience in this business. They are known for their
excellent and consistent quality. They have won several awards from both Central and State
Governments for their export performance. They have bagged the first prize for their exhibition at
all India Spices and Cashew Nut Show held at New Delhi.

Today, their production capacity has increased to 215 bags (75kgs each) of raw cashew nuts per
day, with employment of more than 475 workers. Utmost care is taken to maintain good hygienic
condition at the production center. In reorganization of their performance and quality the Indian
Government has recognized them as an export house. They are the members of Federation of
India Export Organization and Cashew Export Promotion Council of India.They started
extraction of Cashew Nut Shell Liquid (CNSL) in the year 1970. Today they are the one of the
leading manufacturers of cashew nut shell liquid in the country with the production capacity of
4000 MT per annum. The factory is located in the Karkala taluk (Karnataka State, India). This is
around 33 km away from Udupi city.

Mr. Bola Raghavendra Kamath the promoter of this unit has been rendering his services in this
field of cashew processing ever since he took to business over four decades ago. Inherited
wisdom and knowledge coupled with hard earned experience put him on fast track in
understanding cashew processing and its phases to achieve proficiency in cashew processing,
trade and process technology.The firm is highly involved in quality improvement of its product.
The products are of the best and internationally acceptable standards. They maintain stringent
quality checks in every part of our operations right from procurement of raw nut to cleaning,
processing and grading, packing and shipping.
The firm has attracted the attention of the cashew importing countries and now exporting these
products to USA, Netherlands, Germany, Czech Republic, Singapore, Japan, Middle East
Countries, Australia and Cyprus.The firm is equipped with all Modern technologies, machines
and equipment. It has a specialized, highly professional and dedicated staff and work force,
which is ready to take any challenges, which may come in future.

Nature of Business

I. Cashew Kernels
II. Cashew Nut Shell Liquid (CNSL)

Cashew Kernels

Cashew Kernels are obtained from raw cashew nuts. India is the biggest producer and second
biggest consumer of cashew Kernels. Cashews are graded according to their size and color. It is
available in the form of Wholes and Pieces. The cashew is one of the most nutritious foods.
Contrary to the popular belief, it contains no harmful cholesterol.

Cashew Nut Shell Liquid (CNSL)

Cashew Nut Shell Liquid is one of the most important by products of the cashew industry. It is
extracted from the outer shell of the cashew nut. It is separated during oil bath process. Cashew
nut has a shell of about 1/8 inch thickness inside which a soft honeycombed structure containing
a dark brown liquid. It is called as CNSL.

Social Responsibility of the Firm:

The firm provides employment to the local people, and provides donations, financial assistance to
local education also for constructions of new building and for local functions. Firm has always
been actively involved in the field of educational institution, hospitals in Udupi and Mangalore
districts. It undertakes special programmes for the economically deprived.

They provide job to women who are from poor background. The wages given to them are equal
to the average earning of men per day who is working outside. They can accommodate any
number of workers according to the requirements. It has provided good employment opportunity
to unskilled and uneducated labours.
Vision, Mission and Quality Policy:

Task:

To provide employment to the rural poor people especially women workers providing work at
their door steps, so as to improve the rural economy.

Objective:

To do the more export which is the need of the present traditional and non-traditional countries,
the firm’s is to deliver safe food product which will consistently meet the trade specifications and
customer expectations in terms of quality and on time delivery in a cost effective manner.

Mission:

To satisfy the customer needs with available best services.

Future Plans and Actions:

To expand the work to other places of Udupi district, presently doing job work at Alangar,
Belvai, Mijar, Kesargadde, Sampige, Yekkar, Kallamundkur.

Quality Policy:

The organizational goal is to“DO IT RIGHT THE FIRST TIME EVERYTIME”

Awards which they have won for their Quality is

 International Gold Medal award.

 Exporter of Mangalore Quality Cashew Nuts.
 State Government award for almost all the years.
 Awards by FIEO, KLN, KCCI and other trade organizations.

Quality Objectives:

 To provide maximum customer satisfaction within the parameters of the trade

specifications.
 To invest in resource to maximize efficiency and to meet international quality standards.
  To excel in product quality maintains consistency with standards.
 To minimize quality complaints through a system of audit.

Product Profile:

Product mix involves planning, developing and processing the right type of products and services
to be marketed by the firm. It deals with the product range, durability and other qualities. Apart
from producing the right product, emphasis should also be laid on their branding, packaging,
color and other features.

There are many types of cashews manufactured by the firm. They are classified as under:

White Wholes (WW)

Scorched Wholes (SW)

Scorched Wholes Second (SWS)

Desert Wholes (DW)

Butts (B)

Small White Pieces (SWP)

Baby Bits (BB)

Large White Pieces (LWP)

Scorched Butts (SB)

Scorched Splits (SS)

Scorched Pieces (SP)

Scorched Small Pieces (SSP)

Scorched Pieces Second (SPS)

Desert Pieces (DP)

Price:

Price is the value placed upon the product by the company. Economies define price as the
exchange value of a product or service expressed in money. To the consumers, price is an
agreement between the seller and the buyer concerning what each is to receive.

Pricing is one of the important decisions taken by every company because when fixing the price,
it has to consider sales volume, profit margin, rate of return on investments, trade margin,
advertisements etc.

Bola RaghavendraKamath and Sons has two types of pricing policy:

For Customers:

This price is fixed on the quality and quantity of cashews purchased by the customer. Initially,
they show a particular quality of product with the price fixed by the company. If the customer
agrees to pay the price fixed by the company further processing will take place and if they need
different quality of cashew then the company fixes the price based on quality of cashew and
certain amount of profit also included.

For Dealers:

For dealer, pricing is fixed by the M.D. Bola RamanathKamath with the help of the managers
taking into consideration all the expenses. Under this method the price is set to cover the cost of
labours, transportation and certain percentage of profit. The percentage added to the cost is called
is margin. This percentage differs from product to product.

Place:

Place refers to the activities that are necessary to transfer of goods and to make available goods
right time and the place. Thus, it includes decision about the channels of distribution and the
place at which the products should be displayed and manage trade channels through which the
products will reach the customer at the right time and to develop a physical distribution system
for handling and transporting the products through these channels.
According to Stanton, “a distribution channel consists of the people and firms involved in the
transfer of title to a product as the moves from the producer to ultimate consumer or business
user”. It includes both the producer and the final consumer of the product as well as middleman
engaged in the transfer of goods and services.

For Clients:

For clients the company uses direct selling. Direct selling means, the producer or manufacturer
sells his product directly to the final consumer without the help of middleman. For Clients
Company send the final product directly from the manufacturing unit. The company has its own
vehicles for transportation.

For Consumer:

For consumer the company uses indirect selling. Indirect selling is a technique where the
manufacturer sells his products to the final consumer not directly himself, but through one or
more middlemen. Some of the consumer will directly come to the company and buy the product.
For transportation the company uses their own vehicles.

Promotion:

Promotion includes decision about publicity, advertising, salesmanship and other sales promotion
technique. No business enterprise can market its products unless it undertakes promotional
activity effect.

The firm does not spend much on advertising. The firm mainly depends on its marketing on
personal selling. If the firm intend to increase the sales and there by profit it is advisable to the
firm to spend a little bit more on advertising.

Marketing Strategies:

The marketing strategies followed in the company are as follows:

Expo’s:

Bola Raghavendra Kamath and Sons sponsors and organizes various Cashew Expo’s in Domestic
and International market.
Cold Calls:

A Cold Call refers to continuous call ups to their customers. In calls attempt is made to convert
them as their customers. Brief explanation about their product and the service which they provide
told to customers.

Advertisements:

The advertisement strategies which they follow are:

 They give advertisement in yellow pages

 Marketing representative was sent to those industries to which company can make them
as their customers. These marketing representatives are fully equipped with the
knowledge f the products and well trained in the field of the communication.

Online Strategies:

Online strategies for marketing the products include email marketing. To market and sell their
products via email, they develop list of customers in email database. One way to do this is by
creating an email newsletter the customers can sign up on their website. Send weekly or monthly
emails to these customers, and offer deals, discounts. Customers can place their order on their
website itself.

Processing Functions of the Industry

Cashew Kernels

The Conversion of Raw Cashew Nut to Cashew Kernels is a six days process.

 Roasting
 Cutting
 Hot Chamber
 Peeling
 Grading
 Packing

 Roasting
 It consists of machines like Cashew Cooker, Boiler and Steam pipes. Roasting is done to
create a gap between Cashew Kernels & Cashew Shells. The unit is having 4 cashew
cookers at Karkala & 3 at Belvai along with boilers, connected with it.

 Cutting
Cutting is done through cutting machines. The capacity of each cutting machine is 12 to 15
Kgs per day. While cutting process, Cashew Kernels is separated from Cashew Shells.
Cashew Shells are being used for extraction of Cashew Shell Oil(CNSL) by expellers. The
unit is having 125 cutting machines at Karkala, 100 cutting machines at Belvai and 75
cutting machines at padubidri.

 Hot Chambers
The Cashew Kernels, which are separated from Cashew Shells during cutting process are
put in hot chambers to make it fit for peeling of outer Cashew Husk.
The unit is having two big Hot Chambers at karkala and one Hot Chamber at Belvai along
with heat exchanger for providing hot air in to the hot chamber.

 Peeling
The peeling is done by peelers. The peeling tables are provided for peeling of cashew
kernelsThe unit has started new mechanized peeling section at the cost 40 Lakhs, to
enhance the present processing capacity, and to reduce the cost.The peeled kernels are
again kept in gas hot chamber to make nuts crispy.
 Grading

There are around 25 grades of Cashew Kernels. These grades are done by the graders manually.
Grading tables are provided for this purpose. After grading kernels are stored in plastic crates.

 Packaging

After grading of kernels are packed in to tins by vibrator machines and the tins are vita packed by
adding Co2 to make it free from infestation.
The company is having new type of packaging machines, where kernels are packed in pouches,
before passing it through the metal detectors. The packed pouches and tins are then packed in to
carton boxes.

These packed Cartons are inspected by quality section of the factory before sending the goods to
export or domestic market.

Cashew Nut Shell Liquid (CNSL)

Procuring of Raw Cashew Nut

Raw cashew nut is a seasonal crop. It is available only during March, April and May. It contains
to 7% to 8% of moisture. So it has to be dried for two days to remove the moisture. It is stored in
the gunny bags. Storage without drying decreases quality of raw cashew nut with 4-5 months.
B.R.K imports raw cashew nuts from African Countries, Ivory Coast, Ghana and Indonesia.

Roasting

The Roasting of raw cashew nut is done by steam roasting process. A specially designed steam
boiler is employed for this purpose. The raw cashew nuts are fed into this boiler and kept under
atmosphere of steam for 30 minutes. The roasted nuts are then spread into the flour of cooling.
The main purpose of roasting is to avoid breakage of kernels during the cutting process. In B.R.K
almost 150 bags cashew nuts are roasted each day using four steam boilers.

Cutting

The roast cashew nuts are fed into the hand operated cutting machines to separate kernels from
the shells. The cutting machines are operated by small blades and springs. The entire process is
manual and is usually handled by ladies. Each woman can separate around 10 to 20kgs per day.
In B.R.K 100 machines are installed, with two workers working on each machine. One does the
cutting and other helps him in removing the outer shell from the kernels. Here each woman
separates around 15kgs per day.

Ownership Pattern
Managing Director:

More than being managing the overall organization, he is true leader and an exceptional
motivator. Simple living and high thinking is what he believes in. totally he is a nice person with
a space for everyone’s concern in his heart.

Production Manager:

He is responsible for keeping the group of production intact and makes people look outwards and
think for the growth of the organization. he is the incharge of Production Department of the firm.

Marketing Manager:

He is an example for saying a good leader is a good listener. Be it strategy or idea his capacity to
execute them is exceptional. On the marketing front his brilliance remains undefined. He is
responsible for Marketing Department of the firm

Finance Manager:

He looks after the financial aspects of the firm. More than being a financial brain he is a true
leader and an exceptional motivator with his soft spoken and smiling face.

H R Manager:

He is an instrumental person in restructuring the employee support, working atmosphere and he

is incharge for hiring the staff for various departments of the organization.

Competitors :

Gayatri exports Karkala

Bola SurendraKamath and Sons Manjarpalke

Sheshdri cashew industry Karkala

Achal Industries Manglore

Canara cashews Udupi

And other small industries of Karkala region

Achievements/ Awards

 First Prize received for the best quality by Council of Agriculture Research, New Delhi.
 Medal for Top Export by Government of Karnataka during 1967-68.
 Export Award by Government of Karnataka during 1976-77.
 K.L.N Award for Top Export during 1977.
 K.L.N Award for Top Export during 1978.
 Kanara Chamber of Commerce Export Award for 1987-88.
 Kanara Chamber of Commerce Export Award for 1988-89, onwards.
 State Award for Export 1992-1993.
 State Award for Export 1993-1994.
 State Award for Export 1994-1995.
 State Award for Export 1995-1996
 National Award by Federation of Indian Export Organisation (FIEO) (Ministry of Commerce-
Govt. of India during 1999-2000).
 Best Export Award (Rural) for the year 1996-97,1997-98,1998-99,1999-2000 by Government
of Karnataka.
 Export Awards for the year 2001 To 2004 by the Karnataka State Government.
 Export Award by Karnataka State Government for the year 2004-2005.
 FIEO award for 2003-2004
 FIEO award for 2004-2005
 State Government award for 2005-2006
 State Export Excellence Award 2009-2010
 State Export Excellence Award 2010-2011
 FKCCI Export Excellence Award 2011
 FKCCI Export Excellence Award 2012
 KASSIA District level Best Entrepreneur Award 2012
 FKCCI Export Excellence Award 2013

 FKCCI Export Excellence Award 2014

 State Export Excellence Award 2013-2014
 FKCCI Export Excellence Award 2015
 FKCCI Export Excellence Award 2016
 FKCCI Export Excellence Award 2017
 FKCCI Export Excellence Award 2018
Membership

 Federation of India Export organization (FIEO), New Delhi.

 International Nut Council.
 Indian Chamber of Commerce and Industries.
 Karnataka Small Scale Industries Association, Bengaluru.
 Chamber of Commerce and Industries, Mangalore.
 Karnataka Cashew Manufacturers Association, Mangalore.
 Coffee Board.
 Spice Board.
 Udupi Chamber of Commerce.
 Udupi Small Scale Industries Association.
 Agricultural Produce Export Development Authority.

Future Growth and Prospects:

The company started new branches in Udupi and Mangalore districts. Workers should be given
better facilities and firm should encourage workers and educate them for better work. To
overcome the problems of shortage of power the firm has to resort other sources of power supply
such as solar power etc. to avoid the problems of power failure.

 Setting up of a centralized warehouse for storage of raw cashew nuts.

 Export of value added and branded cashew nuts recommended.
 Export should try to establish a working relationship with super market chains
abroad to market their cashew.
 Market development of nontraditional foreign market for cashew should be taken up.

 Establishment of large units to obtain economies of scale to provide competitive edge for
Indian cashew exports.
 Use of better packing materials and methods for cashew exports.
 Adopt scientific methods of cashew cultivation.
Career Opportunities in Company
 It provides more employment opportunity to those who are deprived of Basic Education.
 The skills required by the Industry can be attained with Practice and Experience.
 The company can give more opportunity to rural area workers.
 The workers can do their work correctly the company can give Bonus, Fringe Benefits etc.
 Members of work force and management are given full opportunity and support to develop
their skills which leads to better productivity.
 It recruits the best talent, offers competitive compensation, provides a dynamic work
environment and charts their growth through systematic career planning.
 Cashew factories provide work to the workers throughout the year irrespective of the
market situation.
 Chapter 3

Mckinsey’s 7S Frame Work

The Seven-S (7-S Model) is a framework for analyzing organizations and their effectiveness. It
looks at the seven key elements that make the organizations successful, or not: strategy; structure;
systems; style; skills; staff; and shared values.

Consultants at McKinsey & Company developed the 7S model in the late 1970s to help managers
address the difficulties of organizational change. The model shows that organizational immune
systems and the many interconnected variables involved make change complex, and that an
effective change effort must address many of these issues simultaneously.

The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes
how one can holistically and effectively organize a company. Together these factors determine
the way- in which a corporation operates. The 7's of McKinsey Framework are listed below:

 Shared Value (Also Called Super-Ordinate Goals)

Shared values are commonly held beliefs, mindsets, and assumptions that shape how an
organization behaves its corporate culture. Shared values are what engender trust. They are an
interconnecting center of the 7’S model. Values are the identity by which a company is known
throughout its business areas, what the organization stands for and what it believes in, it central
beliefs and attitudes. These values must be explicitly stated as both corporate objectives and
individual values.

 Structure

Structure is the organizational chart and associated information that shows who reports to whom
and how tasks are both divided up and integrated. In other words, structures describe the
hierarchy of authority and accountability in an organization, the way the organization's units
relate to each other: centralized, functional divisions (top-down); decentralized (the trend in
larger organizations); matrix, network, holding, etc.

These relationships are frequently diagrammed in organizational charts. Most organizations use
some mix of structures – pyramidal, matrix or networked ones – to accomplish their goals
Organization Chart

Managing Director

Production Marketing Finance Manager HR

Manager Manager Manager

Supervisors Sales Person Accountants Clerks

Blue Collar Employees Employees

Employees Employees

Source: Internal Records

Production Department

This department oversees the production planning and control of Raw material. Production
manager looks after entire production, process and procurement of the organization.
Organization Chart of Production Department

Production Manager

Supervisor

Blue Collar Employees

Source : Organisation chart

Functions

 Manufacturing of Cashew Nut and CNSL.

 Implementation of production plan.
 Good manufactures practice in the factory.
 Release of production files to factory with material update.
 Production clearance on a day-to-day basis.

Finance Department:

Organization Chart of Finance Department

Finance Manager

Clerks

Source: Organisation chart

Financial manager assures the smooth running of the company. He has to interact with banks,
deal with the payment of cheques to suppliers, customers balance etc.

The company is banked with the Syndicate Bank, Karkala for working capital as well as fixed
capital requirements. The interest rate for working capital requirements are:

For export- 7.25%

For domestic- 9.50%

The interest rate for fixed capital requirements is- 9%

Personnel Department:

Organization Chart of Personnel Department

Personnel Manager

Clerks

Source: Organisation chart

The basic essential ingredients of a business are Men, Money and Materials. All these factors are
equally important in the process of production. The principal component of an organization is the
“Human Resource”.

Personnel management is the management of Human Resources in an organization. It is

concerned with the creation of harmonious working relationship among its participants and
bringing about their utmost individual development which maximizes the individual contribution

Human Resource and Their Wage Structure:

There are more than 475 employees in B.R.K. out of which 90% are women and also it has a well
built Administrative office and Staff. The workers in the three departments are around 220. The
wages given in Roasting and CNCL department are daily wages whereas piece wage is given in
Peeling Department.

Basic Salary:

Roasting and CNCL Department - Rs. 90.70 per kg

Cutting Department – Rs. 14.50 per kg

Staff Salary – 3500

DA (Dearness Allowance) – Rs. 36.51 per day

Maintenance Department:

Organization Chart of Maintenance Department

Maintenance is that function of manufacturing management that is concerned with the day to day
problem of keeping the physical plant in good operating condition. It is an essential activity in
energy manufacturing firm to ensure the availability of machines, buildings and serious needs
needed by the other parts of the organization for the performance of their functions at an
optimum return on the investments.

The mechanics should daily check the machines for outsides work like cutting, peeling and
packing etc. they will check machines once in a week.

Marketing Department:

Organization Chart of Marketing Department

Marketing Manager

Sales Persons

Source: Organisation chart

Marketing is a process by which goods and services are delivered to the customers. Marketing is
one of the activities for Maximization of Profits and wealth. So marketing is an activity, which
plays an important role in the organization to achieve its objectives. The department conducts
seminars and workshops on various policy and procedures laid down by the Government for
business operations. Marketing department always keep on scanning the external environment to
innovate new opportunities for the company.

The Marketing Department performs marketing activity of by supporting the product to the
customers within the mentioned time and the product is transferred to the customers by road
transportation and by means of ship for export. Marketing Department performs set of tasks such
as creating awareness about the products, market analysis etc.

 Strategy

Strategy is the choice of direction and action of the company adopt to achieve its objectives in a
competitive situation. A strategy explains what are the objectives of the organization and how the
organization go about to achieve its objectives.

The main aim of the company will be producing good quality of cashew nut to the public as well
as providing more number of employment and increase the standard of living of the people.

The Bola RaghavendraKamath business philosophy is based on three core values they are
operational excellence, Customers focus and product leadership.

The Business Strategy Emphasizes The Following:

 Increase their market share

 Reduced cost of production
 Increase company performance
 Produce always quality product
 To meet social responsibility
 Provide employment opportunity to the people of the area
 Meet the national and regional demand of cashew nut and cashew nut shell liquid
 Reduce the import of raw cashew from the foreign market
 To manufacture and deal in all kinds of cashew products
  Systems

Inventory Control System

Inventory is a place where the raw cashew nuts are kept for processing purpose. There are 50
workers are required to maintain inventory. The company procures raw cashew nuts from inside
or outside the country are stores in the inventory. In the raw cashew nuts are not dried they are
kept for drying process and stored inside. So the drying process is necessary to keep the cashew
nuts for a long time.

To procure these raw cashew nuts bankers provide 90% of loan for the company and 10% of the
value money has to put from its own packet. This 10% is called the margin money since the
bankers do not provide it. The cashews are seasonal crops; they are available only during the
months of February, March, April and May in the local market. These cashews are not sufficient
for the company and hence it has to procure the cashew nuts from foreign countries. This fulfils
the needs of the inventory of the company. Some of foreign countries are Bahrain, Ivory Coast
and African nations.

Inventory workers maintain the inventory department according to the requirements of the
company. Their main work is to dry the raw cashew nuts and Transportation of cashew nuts to
the roasting department.

 Staff

"Staff" refers to the number and types of personnel within the organization and how companies
develop employees and shape basic values.

Managing Director:

Responsibility:

 Overall control of the company

 Ultimate responsibility for product quality
 Responsibility for customer satisfaction
 Responsibility of marketing

 New product development and process improvement

 Growth and company profit

Authority:

 Approve quality assurance manual

 Interact with customers
 Approve capital goods
 Release the product whenever there is ambiguity
 Disposal of non-conforming products

Production Manager:

Responsibility:

 Overall responsibility of production, planning and control

 Overall responsibility of equipment pattern and product quality
 Safety and house-keeping of entire factory
 Upkeep all equipments
 Process improvement and productivity
 Training of production and quality control personnel
 Upkeep of relevant records

Authority:

 Co-ordinate at all stages of production to ensure material of right quality and quantity
reaching customer on time
 Introduce new production methods/materials to improve productivity and quality

Maintenance Manager:

Responsibility:

 Monitor and control the activity of the administration office

 Upkeep of statutory records
 Make payment to suppliers on due date

 Housekeeping in respective areas

Authority:

 Prepare and send cheques/DD

Accounts Manager:

Responsibility:

 Maintain books of accounts

 Update all the accounts regularly
 Prepare financial statement at defined intervals
 Update the salary, advance register

Authority:

 Transferring the entries to computer

 Raise debit/credit notes
 Issue stamped receipts for the payment received

Assistant Manager of Quality Assurance:

Responsibility:

 Process inspection
 Training of quality assurance personnel
 Overall responsibility of company regarding product quality

Authority:

 Accept the product at inward good stage

 Approve the cashew nut before dispatch

Marketing and Administration Officer:

Responsibility:
 Delivery challan cum invoice preparation with its related activities
 Central excise formalities and related activities
 Cash handling
 Upkeep and maintenance of the following records
 Central excise records
 Delivery challan cum invoice
 Other delivery challan

Authority:

 Purchase stationery
 Co-ordinate with central excise department on behalf of the company

Purchase Officer:

Responsibility:

 Local purchase
 Cash purchase
 Out station purchase, follow up as and when assigned
 Attending bank work

Authority:

 Authorized to procure material from approved supplier in consent with Director

The Responsibility and Authorities of Management Representatives include the following:

 Coordinating for the implementation and maintenance of the quality management system
with other head of the departments in the company.
 Coordinating and obtaining approval and updating the quality assurance manual, documented
procedures, detailed procedures and process maps.

 Reporting to management on the performance of the quality management, including needs for
improvement through management review meetings.
 Ensuring awareness of customer requirements throughout the organization.
 Style
 The company is following participative decision making style. All the department heads are
free to take decisions, which are directly related to the functioning of their respective
departments. Although it is a participative style where all the levels of employees, given chance
to express their ideas, supervisory level employees are not allowed taking any major decisions.
But decisions center lies at managerial level.

While taking major and critical decisions of different departments, a meeting of all the
department heads of the company will be held. They will discuss about the problem area, solution
to tackle the problem, its affect on different departments etc. and then a suitable decision will be
taken. There is a Decentralized Decision Making System. Shop keeper inform to his superior and
superior approach to his superior. This way the information goes to higher level they take a
decision.

For day-to-day operations the company will follow Authoritarian Approach when it comes to
decision making. Only the person who is in higher authority will take the decisions.

For example, while taking decisions regarding purchase the Director and Purchase Manager of
that department will take decisions regarding the vendor, quality and quantity of the raw material
and tenders. The higher authorities will consider the concerned member while taking the decision
this shows the Participative Approach.

 Skills

New labors are given training by the existing experienced labors. They have been properly
trained to maintain cleanliness. The training helps the new workers to adjust to job and reduces
the accidents.

When the new workers enter the organizations there is no specific induction training program.
The company feels the senior experienced workers could enable the new workers to gain the

skill. Till the new worker gain confidence and skill sets they are trained on the following
grounds.

 Training on the job

 Crisis management
 Betterment of Inter Personal Relationship
 Company Policies
 Safety Measures
 The action plan during accidents
 Maintenance of Hygiene and Cleanliness
 Facilitation to adjust to the organization
 Helping to adjust to the job requirements in a conducive way
 Chapter 4
SWOT Analysis
Strengths

 Good and dedicated employee strength

 Proficiency in their activities
 Internationally accepted product quality standards
 Good infrastructural facilities
 Quality products.
 The company got the ISO certificate for producing quality products

Weakness

 High maintenance cost of machines

 Limited scope in the domestic market
 Checking the quality before purchasing raw cashew is very difficult.
 Managing quality with International Standards is quite difficult.
 Unavailability of workers as per requirement.
 The permission to run the industry should be renewed every year.
 Fewer advertisement in the local market

Opportunities

 To enter new international markets

 Optimistic growth prospect
 Large number of International Buyers
 If company appoints skilled labor with the automation process then that provides an
opportunity for the company for producing quality of goods effectively and more efficiently

Threats

 Instability in foreign currency

 Decrease in the prices of the bi-products
 As the export is done through ship, many procedures are involved in shipment
 Large number of competitors in the market
 Chapter 5
Ratio Analysis
Current Ratio:

The current ratio is a liquidity ratio that measures a company’s ability to pay short term and long
term obligations. To gauge this ability the current ratio considers the current total asset of a
company. (both liquid and illiquid) relative to that company’s current total liabilities.

Current ratio = current asset/ current liabilities

Table -5.1: Current ratio

Year Current assets Current liabilities Ratio

2015-2016 4,17,74,250 78,55,600 5.31

2016-2017 2,70,35,035 31,06,205 8.70

Source: Balance sheet of the company

Figure –5.1: Current ratio

Current ratio
10
8.7
8

6 5.31

0
2015-2016 2016-2017

Source: Table –5.1

Current ratio gives the idea about the company’s ability to pay back the liabilities with its assets .
It roughly measures company’s financial health. The above table and graph shows the current
ratio of company. Industries current ratio is increased 2015-16 to 2016-17. The above table
shows current ratio is 5.31 and 8.70 respectively for the financial year 2015-16 and 2016-17. The
current ratio shows little increase in the second financial year. the ideal ratio is 2:1.High current
ratio suggests that company is not utilising its current assets efficiently or working capital well.
Quick ratio:

The quick ratio is a measures of how well a company can meet its short term financial liabilities
also now as the acid test ratio it can be calculated as follows

(Cash + marketable securities + accounts receivables)/current liabilities

Quick ratio=quick assets/current liability

Quick ratio= (current assets-inventory)/current liabilities

Table - 5.2: Quick ratio

Year Quick assets Current liabilities Ratio

2015-2016 2,75,74,250 78,55,600 3.51
2016-2017 24,84,435 31,06,205 0.8
Source: Balance Sheet of the company

Figure - 5.2:Quick ratio

Quick ratio

2 3.51

1 0.8
0
2015-16 2016-17

Source: Table - 5.2

The quick ratio helps us to know the companies short term liquidity with its most liquid assets.
The ideal ratio is 1:1 The above table shows Quick ratio is 3.51 and 0.8 respectively in the year
2015-16 and 2016-17. The Quick ratio is much more decreased by 2015-16 to 2016-17 financial
year ratio.
Absolute Liquid Ratio:

Absolute liquid ratio relates cash, bank and marketable securities to the current liabilities. It
means absolute liquid assets worth one half of the value of current liabilities. Are sufficient for
satisfactory liquid position of a business.

Absolute liquid ratio=absolute liquid assets/quick liability

Where absolute liquid assets = cash +bank +marketable securities

Table - 5.3: Absolute liquid ratio

Year Absolute liquid assets Current liabilities Ratio

2015-2016 1,30,57,450 78,55,600 1.66

2016-2017 7,61,955 31,06,205 0.24

Source: Balance Sheet of the company

Figure - 5.3: Absolute liquid ratio

ABSOLUTE LIQUID RATIO

1.66

0.24

2015-16 2016-17

Source: Table - 5.3

In the above table and relevant chart indicate absolute liquid ratio. In sound business generally
0.5:1 is considered as standard ratio. The above table and chart shows function in absolute liquid
ratio in 2 years. In the year 2015-16 ratio is more than the standard ratio that is 1.66 but in the
year 2016-17 it is less than standard ratio that is 0.24, it indicates that firm does not have
sufficient absolute liquid assets to meet it’s liquid liabilities
Current Asset Turnover Ratio:

Current asset turnover ratio measures the value of a company sales or revenues generated relative
to the value of its assets. The asset turnover ratio can often be used as an indicator of the
efficiency with which a company is deploying its assets in generating revenue.

Current Asset turnover ratio = net sales/current assets

Table - 5.4: Current asset turnover ratio

Year Net sales Current assets Ratio

2015-2016 8850003 41774250 0.21

2016-2017 9061743 27035035 0.33

Source: Balance Sheet of the company

Figure 5.4: Current asset turnover ratio

Current asset turnover ratio

0.35 0.33

0.3
0.25 0.21
0.2
0.15
0.1
0.05
0
2015-2016 2016-2017

Source: Table - 5.4

The above table shows Current asset turnover ratio 0.21 and 0.33 respectively in the year
2015-16 and 2016-17. The Current asset turnover ratio is much more increased in the 2015-16 to
2016-17 financial year ratio.There is no such standard or ideal ratio, so higher the ratio means
higher the efficiency. We can also tell that higher the ratio means we can sell more products with
less investment.

Working Capital Turnover Ratio:

Working capital turnover ratio is a ratio which measures how efficiently a company is using its
working capital to support a given level of sales also referred to as net sales to working capital it
shows the relationship between the funds used to finance a company’s operations and the revenue
a company generates as a result.

Working capital turnover ratio= net sales / working capital

Working capital = current assets-current liabilities

Table - 5.5:Working capital turnover ratio

Year Net sales Working capital Ratio

2015-2016 8850003 33918650 0.26

2016-2017 9061743 23928830 0.37

Source: Balance Sheet of the company

Figure - 5.5:Working capital turnover ratio

Working capital turnover ratio

0.4 0.37

0.3 0.26

0.2

0.1

0
2015-2016 2016-2017

Source: Table - 5.5

The above table diagram shows Working capital turnover ratio is 0.26 and 0.37 respectively by
the year 2015-16 and 2016-17. It tells when the ratio is higher, the lower is the investment in
working capital and the greater are the profits.The Working capital turnover ratio is much more
increased by the 2015-16 to 2016-17 financial year ratio.it shows the investment is low and the
profits are also high. So the solvency and the operational efficiency is good.
 Chapter 6
Learning Experience
 During the plant training I had great opportunity to learn more and know about all
possible departments in the organization. I was totally devoted in learning the total work
process in the organization.
 In class room I learned only theoretical aspects about the organization but during the
internship. I learnt almost all aspects in a cashew industry.
 I observed all the departments. It helped me to understand how each department functions
and how their activities are interrelated in the organization.

 Importance of different management functions such as planning, organizing, staffing,

directing and controlling was understood.
 This study helped me in knowing the importance of teamwork in an organization.
 This study also helped me to know about employer and employee relationship in
achieving the organizational goals.
 I understood the importance of leadership traits, which helps in achieving personnel as
well as organizational goals.
 Besides all, I learnt the importance of time management in the organization.
Bibliography
1. Company’s manual

 Cashew bulletin
 Quality assurance manual
 Production manual

2. Websites

 www.bolacashew.com(28-July-2018)
 www.cashewnutindustry.com(15-July-2018)
 Link: https://www.acuite.in/documents/ratings/revised/24548-RR-20171106.pdf
Annexure
Balance Sheet as on 31st March, 2016 and 2017:

2015-16 2016-17
EQUITY & CAPITAL

(1) SHARE HOLDERS FUNDS

a) PARTNERS CAPITAL 9,89,35,070 5,80,84,809
b) RESERVES AND SUPPLIES 00

(2) NON CURRENT LIABILITIES

a) LONG TERM BORROWINGS 00 6,52,42,975
b) OTHER LONG TERM LIABILITIES

(3) CURRENT LIABILITIES

a) SHORT TERM BORROWINGS 00 5,47,727
b) TRADE PAYABLES 78,55,600 25,58,478
c) OTHER SHORT TERM LIABILITIES 00 00

TOTAL 10,67,90,670 12,64,33,989

ASSETS

(1) NON CURRENT ASSETS

a) TANGIABLE FIXED ASSETS 6,50,16,420 9,93,98,954
b) NON TANGIABLE FIXED ASSETS 00
c) LONG TERM INVESTMENTS AND 00
ADVANCES

(2) OTHER CURRENT ASSETS

a) INVENTORIES 1,42,00,000 2,45,50,600
b) TRADE RECEIVABLES 0.00
c) CASH & CASH EQUIVALENTS 1,30,57,450 7,61,955
d) OTHER CURRENT ASSETS 1,45,16,800 17,22,480

TOTAL 10,67,90,670 12,64,33,989