Management in Action

A Consultancy Report

On

Rose Agrotech Coconut Powder Industry

Kuntalpady, Karkala

Submitted by
Abdul Latheef
Austin Rodrigues
Deepali Suares
Havish P D

Under the Guidance of

Dr.Sudhir Raj K
Professor
JKSHIM, Nitte

Submitted in Partial Fulfillment of MBA Course to

Justice K.S.Hegde Institute of Management, Nitte

(An Autonomous Institute under Visvesvaraya Technological University, Belagavi)

Department of Business Administration

Justices K.S. Hegde Institute of Management
NMAMIT, Nitte

2016
 Certificate
This is to certify that Mr. Abdul Latheef, Mr. Austin Rodrigues, Ms. Deepali Suares and
Mr. Havish P.D. are the bonafide students of Master of Business Administration at Justice
K.S. Hegde Institute of Management, NMAMIT, Nitte for the academic year 2015-2017. The
report entitled A Consultancy Report on Rose Agrotech Coconut Powder Industry is
prepared by them under the guidance of Dr. Sudhir Raj K, Professor, Department of Business
Administration, NMAMIT, Nitte, in partial fulfilment of the requirement for the award of
degree in Master of Business Administration from Visvesvaraya Technological University,
Belgaum.

Date: 15-10-2016 Dr. K. Sankaran

Place: Nitte (Director)
Department of Business Administration
NMAMIT, Nitte

Valued by

Sl. No. Name of the Examiner Signature Date

1.
2.
 Guide Certificate

This is to certify that the Management in Action Consultancy report entitled A Consultancy
Report on Rose Agrotech Coconut Powder Industry has been successfully carried out and
prepared by Mr. Abdul Latheef, Mr. Austin Rodrigues, Ms. Deepali Suares and Mr. Havish
P.D., students of Justice K.S. Hegde Institute of Management, NMAMIT, Nitte in in partial
fulfilment of the requirement for the award of degree in Master of Business Administration
during the academic year 2015-2017, under my guidance.

Date: 15-10-2016 Dr. Sudhir Raj K

Place: Nitte (Internal Guide)

Department of Business Administration

NMAMIT, Nitte
 Declaration
We, Mr. Abdul Latheef, Mr. Austin Rodrigues, Ms. Deepali Suares and Mr. Havish P.D. hereby
declare that this Management in Action Consultancy report entitled A Consultancy Report on
Rose Agrotech Coconut Powder Industry submitted by us is our original work and is done under
the valuable guidance of Dr. Sudhir Raj K, Professor, Department of Business Administration,
NMAMIT, Nitte, in partial fulfilment of the requirement for the award of degree in Master of
Business Administration from Visvesvaraya Technological University, Belgaum.

The information provided by us is authentic to the best of our knowledge and is not been
submitted to any other University/ Institute for the award of any Degree/ Diploma.

Date: 15-10-2016 Abdul Latheef

Place: Nitte Austin Rodrigues
Deepali Suares
Havish P.D.
 Acknowledgement
Gratitude is receptive energy. We would like to thank people who have helped us throughout,
without whose support our project would be an incomplete one. Therefore we would like to
extend our heartfelt thanks to them.

Firstly we would like to thank Dr. K. Sankaran, Director, Justice K.S. Hegde Institute of
Management, Nitte for providing us with this opportunity to undertake this project.

We are highly indebted to Dr.Sudhir Raj K, our internal guide for his support and guidance
right from the beginning till the end. We are thankful for his valuable encouragement, advice,
support and assistance throughout the process.

We are also thankful Mr.Subhash Pinto, proprietor of Rose Agrotech Coconut Powder
Industry for providing us an opportunity to undertake the project in his industry and for his
lending us his valuable time and help.

Lastly, we would also like to extend gratitude to the faculty members for their help and
support and we are thankful to our families who have been a constant source of inspiration
throughout the preparation of this project.
 Table of Contents

Sl.No. Particulars Page No.

1 An Introduction 1
2 Market Potential 1
3 Objectives of the Study 1
4 About the Industry 2
5 Entrepreneurial Background 2
6 Legal Form 2
7 Competitors 2
7.1 A Graphical Representation of the Competitors 3
8 Value Chain Analysis 3
9 Functional Areas 5
10 Organisational Structure 5
11 Manufacturing Process 5
12 Plant Location 7
13 A SWOT Analysis 8
13.1 Strengths 8
13.2 Weaknesses 8
13.3 Opportunities 8
13.4 Threats 9
14 Plans and Strategies for improving Performance 9

1. An Introduction
India is the third largest coconut producing country in the world. Copra and coconut oil are
the two major products of the coconut processing industry. Nearly 60% of the total
production is utilized for food uses and the rest goes in for oil extraction. In spite of the fact
that our country has the necessary raw material to launch new product lines, minimal
progress has taken place in the application of modern technology for full utilization of
various coconut products such as desiccated coconut, coconut cream powder, partially
defatted coconut gratings, bottled coconut water, etc.

Desiccated coconut is widely used in the preparation of sweets, confectionery, curry

preparation etc. The main concentration of units in India producing desiccated coconut is in
Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Orissa and Maharashtra. Desiccated
coconut is not only a value added product but also a labour intensive industry which also
generates huge employment opportunities.

6
This report is entitled to a manufacturing industry named Rose Agrotech Coconut Powder
Industry. It is located in the industrial area of Kuntalpady, Karkala. The industry is into
producing desiccated coconut powder. This report is developed mainly with the objective of
understanding the overall business activities of the industry, to identify the problems faced by
them and to provide possible solutions for the smooth running of this industry.

It has been understood that this industry has been facing certain problems like shortage of
labour, regular power cuts etc. After understanding these problems, we have come up with
some practical suggestions which will help the Rose Agrotech Coconut Powder Industry
operate more efficiently in the near future.

2. Market Potential

Being a mass consumption item, desiccated coconut has a good market. Desiccated coconut
may find good market in areas where coconuts are not produced, particularly, in Northern
India. Nowadays food habits of our people are changing very fast and a number of food items
are being introduced every day where desiccated coconut will also find its use.

3. Objectives of the Study

The main objectives of the study are:

1. To fix the problems faced by the Rose Agrotech Coconut Powder in production and to
understand the problems pertaining to the day to day operations and also to provide
possible solutions.
2. To know the overview of the manufacturing process at Rose Agrotech Coconut Powder
Industry.
3. To know about the suppliers of the raw materials, present competitors in the market and
the customers of Rose Agrotech Coconut Powder Industry.
4. To formulate strategies and plans to make the position of Rose Agrotech Coconut Powder
Industry strong in the market.
4. About the Industry

Rose Agrotech Coconut Powder Industry was established in the year 2013. It is a
manufacturing unit that produces desiccated coconut. Mr.Subhash Pinto is the proprietor of
the business. Setting up a business unit was Mr. Pintos childhood dream as he comes from
the family of businessmen. His brother Mr.Prakash Pinto owns oil mill and a cashew factory.
His cousins are also into business. The desire to set up his own business made Mr.Subhash
Pinto establish Sarosh Rice Mill in the year 2007 which is located in the same premises of
Rose Agrotech. After gaining expertise in the field of business for a couple of years,
Mr.Subhash Pinto established Rose Agrotech Coconut Powder Industry in the year 2013.

Initially they had only 8 employees and now they have provided employment opportunities
for 30 people. The increase in production has resulted in the need for more employees in the
industry. The raw materials are purchased from Sanjay Miranda, Karkala, Praveen Kumar
Jain, Karkala, Venkatesh Baliga, Honnavara and also from local framers. Their customers

7
include Vishal Traders, Belagavi and Saras Enterprises, Vashi. The industry is financed by
Canara Bank, Karkala.

5. Entrepreneurial Background
Mr. Subhash Pinto is the founder of the industry. He has 9 years of experience in business as
he also owns a rice mill in the same premises. His education qualification is Pre University. It
is a sole proprietor business.

6. Legal Form
The business is set up under the Factories Act of 1948 and hence it has to comply the rules
and regulations mentioned in the Act. Rose Agrotech Coconut Powder Industry holds the
membership of FSSAI (11214328000317). It also has a license from Village Panchayat and
Pollution Control Board.

7. Competitors
As this industry is located in rural area, the major competitors are the rural industries like:

Tenguraja Exports, Karkala

Miranda Industries, Karkala

Subhamangala Industries, Karkala

Durga Industries, Karkala

Sarvashakthi Industries, Karkala

Coco Uttam, Karkala

Vikram Industries, Hebri

7.1. A Graphical Representation of the Competitors

8
 Tenguraja
Exports

Shubamangala Miranda
Industriues Industries

Rose Agrotech

Sarvashakthi Durga
Industries Industries

Vikram
Coco Uttam
Industries

8. Value Chain Analysis

A value chain is the whole series of activities that create and build value at every step. The
total value delivered by the industry is the sum total of the value built up all throughout the
firm. Michael Porter developed this concept.

Processed Good
into Marketing Quality
Purchase of
Desiccated Storage in Delivering Coconut
Coconuts
Coconut the the Powder
from
Powder Warehouse Finished and
Suppliers
and Product Taking
Packed Feedback

Purchase of Coconuts from Suppliers

9
The raw materials are purchased as per the requirement from Sanjay Miranda, Karkala,
Praveen Kumar Jain, Karkala, Venkatesh Baliga, Honnavara and from local framers.

Processed into Desiccated Coconut Powder and Packed

First step in the manufacture of desiccated coconut is the selection of coconuts. Then the
coconuts are de-husked and their shells are removed. The brown portion of nuts called testa is
removed by scrapping it off. De shelled coconuts are broken into pieces, washed properly and
disintegrated into powders of various grades. The powder is then dried in a drier by spreading
it out uniformly in trays. The segregated material is packed in oil proof, moisture proof
polythene lined plywood boxes.

Storage in the Warehouse

After the coconut is being processed, it is stored in the warehouse of the industry. The total
area covered by this industry is 11,000 Sq. feet. The industry has 1 warehouse in the premise
which is 3000 Sq. feet. When the customer orders are received,the finished produce is
delivered to the customers.

Marketing and Delivering the Finished Product

The customers of Rose Agrotech are Vishal Traders, Belagavi and Saras Enterprises, Vashi. If
they have the orders from abroad, they take the help ofTenguraja Exportsto export their
products.

Good Quality Coconut Powder and Taking Feedback

The main objective of this industry is to produce good quality desiccated coconut powder and
to satisfy its customers and also to gain global demand. Therefore, they give lot importance to
quality. The industry also holds certificate from FSSAI. After delivering the products to
customers, they take feedback from them. They take suggestions from their customers for
improving the quality of their products.

9. Functional Areas
As it is a small business unit, the functional areas are managed by individuals rather than
departments.

FinancePreparing Accounts, Wages and salaries, money for equipments and

materials CA NityanandaPrabhu, Karkala.
Administration and Technical supportCleaning and maintenance, Security, record
keeping, Support for machinery operating 4 people and 1 Technician
OperationsLabours.
Marketing and Sales Mr. Subhash Pinto (Proprietor).

10. Organisational Structure

10
For any organisation to run smoothly, it should have a good structure. It is the skeleton of the
whole organization to carry out the activities efficiently.

Sole- Proprietor

Supervisor

Packaging Housekeeping
Production Labour Loading labour
Labour Labour

11. Manufacturing Process

In every industry, manufacturing process is a very important factor. By having the
manufacturing process chart the industry can identify the different processes involved in the
industry. It is easy to know and to understand the process involved in the factory. Rose
Agrotech Coconut Powder Industry has nine steps, which helps to know their manufacturing
process of the Desiccated Coconut Powder.

The following chart clearly shows how actually the industry works

11
 Selection of
Dehusking Deshelling
Coconuts

Washing Coconut
Crushing Meat Peeling

Drying Cooling Packing

Selection of Coconuts

The raw material is coconut, coastal Karnataka has abundant coconut growth, and this makes
procuring of raw material easy. The industry has local dealers who sell coconuts and local
farmers bring their coconut to industry often. The Coconuts are purchased from Sanjay
Miranda, Karkala, Praveen Kumar Jain, Karkala, Venkatesh Baliga, Honnavara and from
local framers.

De husking

This process involves removing the husk of the coconut or further processing. Most of the
times, the coconut sellers get the coconut without husk. The husk used as fuel for boilers in
tile industries and households for cooking and bathing. The husk is mainly used for making
coir which can be used to make ropes, mats, matters etc., The advantage of sellers is getting
coconut without husk is payments of coconuts happen immediately or else they may have to
wait for sorting the good coconuts from the load. This process requires skilled labours.

De Shelling

12
In this stage, the coconut shells are removed without breaking the coconut into pieces with
the help of small hand axe. This again is a work done by the skilled labours only. The coconut
pulp or the kernel should not break into pieces because the next step will be affected. The
work is provided with safety equipments like transparent glasses because while breaking the
shell there is chance of shell pieces hitting the eye. Recently the industry has bought a
machine for removing shell which is again operated by a skilled labour as there is danger of
getting hurt by cutting their fingers.

Peeling

In this stage, the peel of coconut kernels is removed with the help of blades. The brown skin
on the kernels has to be removed as to retain the white complexion of the end product. The
peeled coconut is sent for series of washing.

Washing

The coconut is washed in series of water tanks. This process involves more workers because
the worker checks each and every coconut for any remaining brown skin. The end product is
supposed to be white without any dark particles in it. The coconuts are washed in both cold
and hot water to maintain the quality of the powder. As it is a food product, extra care has to
be taken in all the stage of processing.

Crushing

The washed coconuts comes to this stage where the coconuts are crushed and transformed
into a form of wet flour using a machine called as Pin Mill Cutter. The coconuts from the
washing tanks are picked from a screw conveyer and load it into hopper which is leading to
the mouth of the pin mill cutter. The screw conveyer reduces the work of the two labours in
this section.

Drying

The powder is then dried in a drier by spreading it out uniformly in trays. The temperature in
the drying chamber is maintained at about 180F and the powder is stirred occasionally during
the drying process to ensure uniform drying. Great care should be taken during drying.

Cooling

The desiccated coconut is cooled and then sieved to separate desiccated coconut as according
to the desired size, it is cooled and passed through a vibratory screen having different sizes
(12, 14 and 16 mesh).

Packing

The segregated material is packed in oil proof, moisture proof polythene lined plywood boxes
of 25 Kgs. It may also be packed in polybags of 250 Gms, 500 Gms for retail sale. Then
desiccated coconut is packed.

13
12. Plant Location
The plant is established in the industrial area of 2 acre land. It has been classified into 1
Single unit. Total area covered is 11,000 Sq feet. The industry has 1 warehouse in the premise
which is 3000 Sq. feet.

13. A SWOT Analysis

13.1. Strengths
The industry is implemented with modern and advanced technologies which will help
them to perform efficiently and to do the work quickly.
The industry is located in rural area (interior area) which they feel very much suitable
for their growth.
The employees are very much co-operative and there is a healthy relationship among
the employees and the owner.
The industry has its reputation in the local area and it holds FSSAI certification.
The resources are easily available as it is within their reach.
The location is ideal. It is near the state highway.
The USP of the industry is the good quality of desiccated coconut powder that it
produces.

13.2. Weaknesses
The industrys production activity is sometimes getting affected due to unstable
electricity supply. This affects the day to day operations.

The industry has no specific departmentalization like manufacturing department, sales

department, housekeeping department etc. to sort out the different responsibilities.

Lack of clear cut hierarchy in the operations.

Labour shortage is critical.

Poor sanitation.

13.3. Opportunities
The industry can expand its market to different locations which will improve its
business and help the industry to grow.

The industry can expand its plant and increase its production which might also help in
its growth.

Top priority to safety standards may enhance the quality of work.

Adequate sanitation will help maintain health and cleanliness which is an important
aspect of a workplace.

Improvements in packaging by adopting standard packaging methods will help in

maintaining uniformity with minimum errors.

14
 Industry can indulge in sponsorships and social activities to gain more reputation in
the society.

13.4. Threats
Government rules keeps changing which poses a threat.

License renewal has to be done to keep the industry running.

Competition at the point of purchase and sales is always a threat. Local competition is
severe.

Fluctuations in market prices impact heavily the performance of the industry.

From the SWOT analysis of Rose Agrotech Coconut Powder Industry, it is possible to fix the
real problems and challenges faced by this industry. The main problems include-

The laborers are mainly from the northern states. There is a considerable absent of
these labourers in this industry since these labourers frequently go home and wont
come back for work causing lot of problems.
There is no much demand in the local market for the desiccated coconut powder.
The industry doesnt have fully mechanized process for production of desiccated
coconut powder.
The standard quality control mechanisms are absent.
There is no training department for the newly recruited personnel.

14. Plans and Strategies for improving the Performance

The industry is functioning reasonably well. Still there is lot of scope for improvement. The
industry should adopt some strategies to improve its performance.

The industry can install small conveyors which can reduce the number of workers
required in the workplace. This may overcome the labour shortage.
A good network with the local retail stores can overcome the problem of lack of demand
for the products in the local area.
The industry should install sophisticated machineries so as to mechanize its entire
operation.
The industry should go for quality certification like ISO or HACCP. Now the industry
only has FSSAI certification, adding more certificates will improve the brand image of
the industry and can enhance the demand for its product.
There is an urgent need to establish a separate training department so as to cater to needs
of newly recruited employees

15
 The industry can also get into e-retailing. Amazon and a few other websites have started
selling groceries and departmental items online. This can be a platform for the industry to
showcase their products at the national level.
The industry only manufactures desiccated coconut powder presently. There is enough
scope for other products like virgin coconut oil, coconut milk powder, and coconut water
relating to coconut in the global market and also at the national level. This opportunity
should be utilized for better performance.
The industry should develop its own website for better visibility and credibility.

16
Bibliography
http://www.coconutboard.nic.in/dc.htm

http://www.agriculturalproductsindia.com/coconut-coir-products/coconut-coir-products-
disccated-coconut.html

http://recipes.wikia.com/wiki/Desiccated_coconut

17