M Tech Industrial Engineering & Management 2011-13 Semester III
CHAPTER I
INTRODUCTION
1.1 Introduction
Organization study refers to the study of organization in general and about its organizational
goals, organizational structure, management system, technologies used in organization and
how an organization interacts with the environment. Each and every organization has its own
importance in the economic wealth of the nation. Different organization meets different
needs of people by effecting different product and services. As a part of the academic
curriculum, each student has to undertake an organizational study to get practical exposure.
This study was conducted at K.S.E Ltd. Vedagiri
based on the different aspects and dimensions of different departments of the company.
India is the largest milk producing country in the world with an annual yield 79
million tone. Milk and milk products have a prominent position in human life. It
providesthe primary source of nutrition for young ones before they
are able to digest other types of food. The exact component of raw milk varies by species,
but it contains significant amounts of situated fat, protein and fat as well as vitamin C.
Cattle’s milk has a pH ranging from 6.4 to 6.8, making it slightly acidic. As
time changed the cattle feed industry emerged as a booming one and product
diversification became necessity. As time changed the cattle feed industry emerged as
a booming one and product diversification became a necessity. Due to the fast growth of this
industry another industry also grows simultaneously; it is the cattle feed industry. In India
this industry is booming. It is hard to estimate the demand for cattle feed in our country.
K.S.E Limited is the major player in this field with a significant market share. The study
intends to get an overview of the K.S.E’s organizational structure functional department and
their style of working.
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1.2 Methodology
Collection of data is the most important stage in the research process. Collection
of data means the methods that are to be employed for getting the required information from
the units under investigation. Both primary and secondary data are used for the purpose of
the study. Primary data are those collected for the first time. They are collected mainly
through personal interviews with the officials of the company and personal observation.
Secondary data were collected indirectly. They are collected from the records of KSE, the
company’s website, organizations manuals and annual report. MS word and MS excel are
used for the analysis and the preparation of the study report.
1.3 Objectives of the Study
The overall objective is to conduct a study on organizational structureof K.S.E Ltd.
The following are the specific objectives of the study.
To examine the developments of K.S.E
To understand about the functional areas of the company.
To understand the organization structure of K.S.E.
To understand the product profile of K.S.E.
To make a SWOT analysis of K.S.E.
To suggest measure for improvement in the context of the present environment.
To acquire knowledge regarding the company’s operation by interacting with
executives and workers of the company
To understand the functions of different departments in the company
To get knowledge about the industry and the environment in which the company
operates
To know about future prospects of the company.
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1.4 Global Scenario of the Industry:
The feed industry has modern computerized plants and the latest equipment for
analytical procedures and least-cost rations formulation, and it employs the latest
manufacturing technology. In India, most research work on animal feeds is practical and
focuses on the use of by-products, the upgrading of ingredients and the enhancing of
productivity. The quality standards of Indian feeds are high and up to international levels.
Raw materials for feed are adequately available in India. The industry’s production is about
3.0 million tones, which represents only 5 percent of the total potential, and feed exports are
not very high. The country has entered into a period of liberalization and this is bound to
influence the livestock industry. The per capita consumption of milk, eggs and broiler meat
will grow. The Indian feed industry is undergoing a very exciting phase of growth for the
next decade. Today, the Indian feed industry is worth approximately rs.45 billion.
1.4.1 Dairy Cattle:
Worldwide, India is number one in milk production, at 78.0 million tons per annum,
and the dairy industry is spread across the whole country. India has one of the largest
populations of cattle and buffalo in the world. In a total of 288 million head, there are 10
million cross-bred cows, 15 million good milk cows of local varieties and 36 million
buffaloes of good milk varieties. The reminder of the cattle population is of a non-descript
variety and a sizeable proportion consists of bullocks. The remainder of the cattle population
is of a non-descript variety and a sizeable proportion consists of bullocks. The cross-bred
population is either jersey or Holstein-Friesian, crossed with local cows. Cross-breeding was
a natural solution to upgrading the milk yield in the absence of high value imported varieties
of pure-bred animals. The buffalo breeds are unique to India, and produce milk with a fat
content of 7 to 8 percent. Milk is seen as a health drink and a variety of Indian sweets are
prepared from milk. The ice-cream market is growing. Farms are located on the outskirts of
cities and within cities. Almost all villages have number of cattle, but there are only a few
organized dairy farms. In India, diary is not so much an industry as a smallholder faming
activity. Growth in the milk sector has occurred mainly through cooperative efforts. Co-
operatives started by supplying milk collection centers, where milk was collected from
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villagers in quantities as small as 1 liter, and gradually started to provide other services to
farmers, including education, artificial insemination, veterinary health support and feeding.
The small farmers became prosperous, loan facilities were made available through banks, and
member farmers started to share the profits from cooperatives. Cooperatives also set up their
own modern computerized feed plants. They have modern milk processing plants from which
they produce and market pasteurized milk, butter, butter oil, chocolate, ice-cream and milk
sweets, which are very popular with Indian consumers. Today, the feed production from
cooperatives is about 0.6 million tons per year.
The National Dairy Development Board (NDDB), which has excellent
facilities for research on breeding, nutrition and health care, has played a pivotal role in
setting up cooperatives. Without NDDB and several of the existing diary cooperatives, the
milk sector in India would have suffered. The dairy industry in India is expected to grow, but
growth will be restricted to individual small farmers. It is unlikely that India will see the
advent of large, organized dairy farming in the near future.
1.4.2 Feedstuffs and Ingredients in Animal Feeds
India is currently self-sufficient in livestock feeds and does not depend on imports.
Instead, the country exports large quantities of solvent extracted meals, which are a major
source of foreign exchange earnings.
1.4.3 Creates and Grains
Maize, sorghum and bajra (a type of millet) are commonly used in animal feeds.
Wheat and rice are mainly retained for human consumption.
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1.4.4 Cakes and Meals
Commonly used commodities of this kind are soybean, groundnut, rapeseed, sesame
and sunflower meals in poultry feed. In cattle feed, in addition to these meals, others such as
cottonseed and copra are used as premium ingredients.
1.4.5 Feeds of Animal Origin
Meat –meal, fishmeal, bone-meal and dicalcium phosphate of bone origin are the
common raw materials available for animal feeding. It is interesting to note that, with the
exception of some bone-based dicalcium phosphate, the Indian feed industry does not use
materials of animal origin in diary cattle feed. This was not out of fear of any zootomic
problems but the result of deep-rooted beliefs that the cow is sacred and must therefore be
vegetarian. Now even the use of bone-based dicalcium phosphate has been banned and
mineral-based dicalcium phosphate is used instead.
Fishmeal and meat-meal were popularly used in poultry feed, but the increased
production, improved availability and better awareness of soybean meal has led to its
replacing fishmeal and meat-meal in most poultry rations. It should be mentioned that
farmers have faced production problems owning to the bacterial contamination of fishmeal
and meat – meal. The quality of fishmeal is also very poor.
1.4.6 Popular by Products
Some by-products are very nutritious and palatable to cattle, and these products form
the bulk of cattle feed. They include wheat bran, rice bran and oil-extracted rice bran,
tapioca, guar meal, safflower meal, maize gluten and molasses. A special mention should be
made of Indian cattle feed’s unique use of hulls or shells, popularly known as chunis in the
local language. These shells come from pulses: horse gram, black gram, mung bean and
pigeon pea.
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1.4.7 Minerals and Vitamins
Cattle feed is necessarily enriched with vitamins a and d3, and trace minerals such as
iron, zinc, manganese, copper, cobalt and iodine. Calcium and phosphorus are also included.
Poultry feed is enriched with all of these and all of the B complex vitamins.
1.4.8 Feed Additives and Supplements
Feed additives and supplements have played a very important role in
enhancing the performance of diary animals and, even more so, poultry. Today they are
necessary in any feed formulation and essential for the formulation of a balanced diet. The
additives and supplements used are antibiotic growth promoters (their usage is not banned in
India), prebiotics, enzymes, mould inhibitors, toxin binders, anti-coccidian supplements,
acidifiers, amino acids, by-pass fat, by-pass protein, non-antibiotic growth promoters, milk
boosters, antioxidants, feed flavors and herbal preparations of Indian origin. A number of
these products are imported from developed countries.
1.4.9 Feed Standards and Specification
For cattle and poultry, nutritional standards have been prepared with respect to
the genotype, environment, and quality of available raw materials, maintenance methods,
production and reproduction requirements, production capacity and phase of production.
The bureau of Indian standards (BIS) is a central government organization that facilities
discussion between scientists and industry and prepares guidelines and specifications.
1.4.10 Feeding Practices and the Use of Compound Feed
In India, the term “compound feed” refers to feed that is nutritionally balanced
and has been manufactured using the facilities of an analytical laboratory and under the
supervision of nutritionists. There are also a large number of small –scale feed mixers who
produce feed for local consumption. Such feed is termed “self-mixed feed” or “home-mixed
feed”.
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1.4.11 Cattle Feed
Cattle feeding practices are very traditional. Farmers choose their own
ingredients and prepare their own formulations, believing that by these means they are able
to pay more individual attention to their cattle. The productivity of the cattle is limited
because of their poor genetic make-up, so high-quality compound feed (industry feed) may
not necessarily generate a significant improvement in productivity and this has hampered
growth of the cattle feed industry because most farmers are reluctant to use compound feed
fully, instead they compromise by using such feed in proportions of 5 to 60 percent, making
up the balance with their own formulations. It is only in the case of highly productive
animals that compound feed has been able to show its real potential and the importance of
technology has been demonstrated.
The share of compound cattle feed manufactured by the industry, in relation to the
overall potential, is low for the following reasons:
The cattle population is fragmented and spread over large parts of the country.
Farmers’ low level of education and strong traditional beliefs mean that there is generally
little awareness of compound cattle feed.
More than 50 percent of the country’s total milk production comes from a very large
number of low-yielding cows and buffaloes. A further 25 percent of milk production comes
from buffaloes and only the remaining 25 percent of the total is produced by cross-bred and
improved cows.
Industrially manufactured compound cattle feed has proved its value for crossbred
cows and buffaloes but not for low-yielding cattle because of their genetic limitations. Home-
mixed feed is very frequently used for buffaloes and low-yielding cattle.
1.4.12 The Quality Assurance of Compound Feed
The Indian feed industry employs the services of qualified nutritionists.
Members of the industry have their own analytical laboratories and either have their own
research and development facilities or have access to the research laboratories of agricultural
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universities or government institutions. The industry is fully committed to quality and its
technical staff is knowledgeable about the nutrition of cattle, buffaloes, layers and broilers.
As well as the normal proximate principles, other analyses are regularly carried out, such as
amino acids, aflatoxin, ochratoxin, castor, tannins and unease activity. There is a high degree
of awareness of feed microbiology among the millers of feed. Feed raw materials and
finished products are subjected to microbial counts, salmonella and escherichia coli testing
and mould count, and contaminated materials are rejected and sometimes destroyed.
Insurance cover is available.
The feed millers have acquired the latest technologies and modern equipment such as
high-pressure liquid chromatography (hplc) and near-infrared (nir) analyzers. All vitamins,
minerals and other feed additives are regularly analyzed using modern analytical techniques.
Regular seminars are conducted, short-term courses are arranged and Indian scientists are
constantly working to upgrade the quality of Indian feed and make it completely safe for
animal feeding.
The quality of Indian feed can be compared with that of any western feed. Today it is
common to achieve a chicken house average of 310 eggs in 52 weeks, in layers, and body
weights of 2.0 kg in less than six weeks, with a feed conversion ratio of between 1.8 and 1.9,
in broilers. Dairy feed can use the genetic potential of Indian cattle at its maximum. The
quality of Indian feed is satisfactory and innovation will continue.
1.5 Cattle Feed Industry in India.
The cattle feed industry in India about 37 years old. It is mainly restricted to dairy
and poultry farms; the beef and pork industry is almost nonexistent. The quality of standards
of Indian feeds is high and is up to international levels. There is an adequate availability
of raw materials in India. The industries production is about 3.1 million of tones, which
represents only5 percent of the total potential and the feed exports are not very high. Now a
days the cattle feed industry possesses modern computerized plants and latest equipments of
various procedures and employs latest manufacturing technology. In India most research
work on the animal feeds is practical and is focused on the use of bye products and on the
upgrading of ingredients and on the enhancement of productivity. Feed manufacturing on
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commercial and scientific basis was started around 30 years ago with the setting up of
medium-sized feed plants in northern and western India. Feed was produced mainly to cater
to the needs of dairy cattle’s. Today the Indian feed industry is worth approximately 45
billion rupees. India possesses largest population of cattle and buffalo in the world. In a total
of 288million, there are 10 million cross bread cows, 15 million good milk cows of local
varieties and 36 million buffalos of good milk varieties. The rest of the cattle population is of
a non-descriptive variety and a sizeable proportion consists of bullocks. India is number one
milk production, at 79 million tons per annum and the dairy industry is spread across the
whole country. Farms are located on the outskirts of the cities and also within the cities.
Growth in milk sector has occurred mainly through co-operative efforts. The
milk collection centres started through co-operative effort and collected milk from villagers
in quantities as small as litre and gradually started to provide other services to farmers,
including education, artificial insemination, veterinary health support and feeding. Small
farmers became prosperous, loan facilities were made available through banks, and
member farmers started to share the profits from co-operatives .Co-operative society also set
up their own computerized feed plant. They began to own modern computerized as well
equipped milk processing plants from which they produce and market pasteurized
milk, butter oil, chocolate, ice cream from milk, sweets, which are very popular with Indian
consumers. Today the feed production capacity of the co-operative society is about
0.7million tons per year.
The National Dairy Development board(NDDP), which has excellent facilities
for research breeding, nutrition and health care, has played in vital role in setting up co-
operatives. Without NDDP and several of the existing dairy co-operatives, the milk sector in
India would have suffered. There are as many as 25 well-defined breeds of cattle and six well
defined breeds of buffaloes in India. Well-defined breeds are found in dry parts of
their country while cattle in areas of heavy rainfall like south and east India usually do not
belong to any defined breed. Cattle feeding routines are quite traditional. Farmers select their
own ingredients and make their own mixtures of cattle feed. The productivity of cattle is
restricted because of their poor genetic makeup. This means that even if such cattle were
offered high quality compound feed (industry feed), productivity may not see an increase. Oil
cakes, maize and cereal by products are important ingredients of cattle feed. Coarse grains
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and cottonseed are usually added to make a balanced feed mixture. Other products like
mango seed kernel, Mahwah cake, neem cake, soya pulp, wheat bran, pollard, broken rice,
wheat germ and whey powder may also be used for feeding livestock’s. Commercial cattle
feed consists of raw material such as cornstarch, liquid glucose, dextrose,
surbitol,fibrillose, malt dextrin, corn gluten meal, soy meal and rape meal. Intake of cattlesup
plements improves the general health condition of cattle and leads to a high yield of good
quality milk that is rich in fat, protein and sweetness.
1.5.1 The Future of the Indian Feed Industry-Winds of Change
At the beginning of the twenty-first century, India has a population of 1 billion
people. Although the annual growth rate has slowed from 2 to 1.8 percent, the base is so
broad that changes in population dynamics are not perceptible. The population may stabilize
by sometime between 2030 and 2040 if all sections of society support family planning
wholeheartedly. The purchasing power of the middle class is growing (the middle class
accounts for approximately 300 million people) and food habits are also changing.
The Indian economy is growing at the rate of 6 to 8 percent per annum. The livestock
industry in India is the second largest contributor to gross domestic product (GDP), after
agriculture, and accounts for 9 percent of the total. Consumption is likely to increase as
follows: per capita milk from 240 to 450 g per year; per capita eggs from 40 to 100 per year;
and per capita broiler meat from 1 000 to 2 000 g per year.
A major change is occurring in India on the economic front. The country has
adopted a model that lies midway between liberal and public sector production, but growth
has been affected by the poor performance of most of the public sector units, rising
government costs and fiscal deficit, and the economy has suffered. A process of liberalization
was set in motion by the government and has been implemented for the last eight to ten
years. This has caused India to open up and invite investment from multinationals, liberalize
imports, reduce government expenditure and remove public sector businesses. It also means
that the days of nationalization, unnecessary government controls and restrictions will soon
be over thanks to progress in the country's economy.
India has entered into an agreement with its trade partners under the World Trade
Organization (WTO). The changes brought about by the liberalization process will be slow
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but certain. The government is opening up imports in a phased manner, and it is expected that
this process will be completed by April 2003. In the meantime, about 930 items, including
agricultural products, will be open for import under open general licence from April 2001,
making it possible to import dressed chicken, milk and milk products.
Various livestock industry associations have taken issue with such imports in
an attempt to protect their members. If the livestock industry is affected, the feed industry
will also be affected. The Government of India has raised the tariff on all poultry and poultry
products from 35 percent to the WTO boundary level of 100 percent. It therefore appears that
there will be a level playing field.
In view of the expected rise in per capita consumption of chicken meat, eggs and
milk, livestock production and productivity will grow. The dairy industry, which is
cooperative-based, is growing with the increased capacities of milk processing units. The
population of cross-bred cattle and buffaloes is also growing. Milk is very popular in India.
The poultry industry is developing towards vertical integration and a few multinational
companies have already entered the Indian poultry business. Although the live bird market
currently accounts for about 90 percent of the total market, it is expected that the
consumption of dressed chicken will grow in the next five years, from the existing 10 percent
to 25 percent or more. This would mean establishing very hygienic and scientific processing
units. Cold chains, branded chicken, chicken cuts, etc. will be introduced and, depending on
the success and consistent quality, consumer preference for dressed meat will grow.
The next decade will see significant changes in restructuring, mergers, acquisitions,
amalgamations, joint ventures, diversification, integration and efficient service chains, e-
commerce and use of the latest information technology in global tenders, trading,
export/import and other commercial activities. At the root of all these developments will be
the scientific development of feed manufacturing technology. The Indian feed industry will
increasingly use biotechnology, more scientific formulations, new molecules and natural and
herbal products to improve animal productivity. Indian agriculture will also use
biotechnology and genetically modified organisms (GMOs) to support the feed industry,
which is entering a very exciting phase of growth for the next decade.
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1.6 Chapterization
The Industrial Training report has been presented in seven chapters. First chapter
contains introduction to the study, objectives- Scope & Methodology of study, industry
profile- which contains world scenario, Indian and State scenario of the Feed industry and
Chapter scheme. Chapter – 2 having profile KSE Ltd. The chapter gives detailed descriptions
of various departments of the company, which includes Operations department, Finance
department and Personnel& Administration department, Its organizational structure, Product
profile, working hours and like are also presented. Chapter – 3 includes Process details,
Flow process chart, machines and Technical details. The fourth chapter gives detailed
Performance analysis of company over years. It includes Productivity based performance like
Annual production details, Capacity Utilization etc. and Financial based performance like
Annual Sales turnover. The fifth chapter includes SWOT analysis of company. Methodology,
data analysis and SWOT matrix is presented. Chapter – 6 presents various findings,
Suggestions & Recommendations of the Study. The seventh chapter presents the conclusion,
limitation and further scope of the study.
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