A REPORT ON SUMMER TRAINING DONE AT

PARISONS GROUP OF COMPANIES,CALICUT

Submitted in partial fulfilment of the requirements
For the award of degree of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY, CHENNAI
Submitted by
T.N.Niranj Ambadi
REG.NO:710518631017

Under the guidance of

Dr.S.Jaya Bharathi
Professor and Head
DEPARTMENT OF MANAGEMENT STUDIES AND RESEARCH
COIMBATORE INSTITUTE OF ENGINEERING AND TECHNOLOGY
An autonomous Institution
(Approved to AICTE)
NARASIPURAM, COIMBATORE-641109
JULY-2019
 CHAPTER – I

INDRODUCTION
 INTRODUCTION

Purpose of the project is to study the organization at wide. The study of various
departments of the organization etc is to be studied. Internship training report is conducted for
the partial fulfillment of the requirement of the degree of Master of Business Administration
(MBA) as per the University rule.

Internship training is conducted to get experience about the practical application

of the management theory. It helps students to combine theory with practical. The scope of the
study covers how the organization is working, study of the department in the organization and
analyzes the management problem in the organization. Based on the data collected attempt to
make a swot analysis and recommend a solution for recovering the management problem in
that organization
After the Second World War, food industry took quantum leap. This brought in the
need for good and quality food products. Products need quality and retain all the nutritious
factors. This can be more favorable to the customers at large. Food industry across the globe is
turning more and more rice, wheat and oil products.
PARISONS Group of companies introduces mainly wheat products to the market.
Company also produces some other sub products such as edible oil, vanaspathi, etc.
This project contains various departments of the company, the company’s vision,
mission, its objectives, findings and suggestions.

OBJECTIVES OF THE STUDY:

1. To analyze the working of various departments in the organization.

2. To analyze current status of the industry.

3. To analyze current status and future prospects of the organization.

4. To analyze how is the relationship between management and workers.

5. To study particular management problem in the organization

1
PROFILE OF THE INDUSTRY

2
 PROFILE OF THE INDUSTRY

The food industry has given us a food supply so plentiful, so varied, so inexpensive,
and so devoid of dependence on geography or season that all but the very poorest of
Americans can obtain enough energy and nutrients to meet biological needs. Indeed, the U.S.
food supply is so abundant that it contains enough to feed everyone in the country nearly
twice over—even after exports is considered. The overly abundant food supply, combined
with a society so affluent that most people can afford to buy more food than they need, sets
the stage for competition. The food industry must compete fiercely for every dollar spent on
food, and food companies expend extraordinary resources to develop and market products
that will sell, regardless of their effect on nutritional status or waistlines. To satisfy
stockholders, food companies must convince people to eat more of their products or to eat
their products instead of those of competitors. They do so through advertising and public
relations, of course, but also by working tirelessly to convince government officials, nutrition
professionals, and the media that their products promote health—or at least do no harm.
Much of this work is a virtually invisible part of contemporary culture that attracts only
occasional notice.

SOCIETAL ATTACHMENT:

The ways in which food companies use political processes—entirely conventional

and nearly always legal—to obtain government and professional support for the sale of their
products. Its twofold purpose is to illuminate the extent to which the food industry
determines what people eat and to generate much wider discussion of the food industry's
marketing methods and use of the political system.

WORLD WIDE RESEARCH:

Past 25 years, the nutrition had found that food industry practices are discussed only
rarely. The reasons for this omission are not difficult to understand. Most of us believe that
we choose foods for reasons of personal taste, convenience, and cost; we deny that we can be
manipulated by advertising or other marketing practices. Nutrition scientists and practitioners
typically believe that food companies are genuinely interested in improving health. They
think it makes sense to work with the industry to help people improve their diets, and most

3
are outraged by suggestions that food industry sponsorship of research or programs might
influence what they do or say. Most food company officials maintain that any food product
can be included in a balanced, varied, and moderate diet; they say that their companies are
helping to promote good health when they fund the activities of nutrition professionals. Most
officials of federal agriculture and health agencies understand that their units are headed by
political appointees whose concerns reflect those of the political party in power and whose
actions must be acceptable to Congress.

In this political system, the actions of food companies are normal, legal, and
thoroughly analogous to the workings of any other major industry—tobacco, for example—
in influencing health experts, federal agencies, and Congress. Promoting food raises more
complicated issues than promoting tobacco, however, in that food is required for life and
causes problems only when consumed inappropriately. As this book will demonstrate, the
primary mission of food companies, like that of tobacco companies, is to sell products. Food
companies are not health or social service agencies, and nutrition becomes a factor in
corporate thinking only when it can help sell food. The ethical choices involved in such
thinking are considered all too rarely.

Early in the twentieth century, when the principal causes of death and disability
among Americans were infectious diseases related in part to inadequate intake of calories and
nutrients, the goals of health officials, nutritionists, and the food industry were identical—to
encourage people to eat more of all kinds of food. We obtained access to foods of greater
variety, our diets improved, and nutrient deficiencies gradually declined. The principal
nutritional problems among Americans shifted to those of over nutrition—eating too much
food or too much of certain kinds of food. Overeating causes its own set of health problems;
it deranges metabolism, makes people overweight, and increases the likelihood of "chronic"
diseases—coronary heart disease, certain cancers, diabetes, hypertension, stroke, and others
—that now are leading causes of illness and death in any overfed population.

Now a day’s food Industry has a wide range scope. Many countries use rice and rice
products. In India rice production Industries are using various technical methods for large
scale production. In India most of the states are using rice. In Kerala main food is rice and
rice products. There are several firms situated in the Industrial production of rice and rice
products. In Kerala, most of the customers can prefer rice with retain all the nutritious
factors. These Industries make large scale production to the customers at wide.

4
 CHAPTER – II

ORGANAISATIONAL STUDY

5
 PROFILE OF ORGANAISATION

ORIGINE AND GROWTH:

The PARISONS Group has distinguished itself as one of the leading business groups
in Kerala notching up a total turnover exceeding 600 cores. The Group started out as a
Trading outlet in Big Bazaar, the business hub of North Malabar in 1982, and has reached
this distinction during the past decade and a half. The first manufacturing unit was
established in 1992, and now the group has a total processing capacity of 600 MT for Wheat
flour milling and 380MT for edible oil refining per day.

Success of its initial ventures resulted in rapid expansion of wheat flour business with
acquisition of several Roller Flour Mills and key Brand names. The activities of the
promoters diversified in to Rubber, Tea Plantation, Infrastructure leasing etc and caused to be
known as distinguished leading business group of Kerala. The ability of the group to acquire
closed milling units and make them profitable ventures with in short span of time resulted in
the group becoming the market leader in Wheat Flour Business.

The PARISONS Group with their corporate base in Calicut Kerala are the largest
manufacturers and marketers of two basic food commodities, Wheat Flour and Edible Oils in
South India. Started in a humble way, PARISONS has reached a stage that it has grown into
a formidable Omni-presence at every phase of the Agro Business cycle including Production,
Processing and Distribution. Having made their presence felt in the food commodities
market, PARISONS diversified their activities into Rubber, Tea Plantations and
Infrastructure Leasing.

LEADERSHIP:

The PARISONS Group is the brainchild of its Managing Director,

Mr. N. K. Mohammed Ali.

6
 A very resourceful leader and futuristic thinker. His dynamic leadership combined
with the illustrious efforts of his brothers,

Mr. N. K. Ashraf

Mr. N. K. Khalid

Mr. N. K. Harris has been the motive force behind what PARISONS is today, - “a
major presence in the agribusiness industry."

The saga of success of the PARISONS Group started in 1992 when the flagship
company The Parisons Roller Flour Mills Pvt. Ltd. was set up in West Hill Calicut. The
company owns a 120 TPD Roller Flour Mill is now the market leader in its segment with the
ultra premium PARISONS Liberty brand of wheat products. The success of this venture led
the group to acquire several flour mills and key brand names. PARISONS with its rich
experience and expertise in the field of food- processing and trading, has well succeeded in
planning, implementing and running of new projects, as well as, taking over sick and ailing
units and making them viable in the shortest possible time. This has led to the emergence of
PARISONS as the largest producers and marketers of wheat products and edible oils. Out of
the 31 active flourmills in Kerala 4 major flourmills with a total capacity of 600MT is
presently owned by the group. Our presence in the market can be gauged by the fact that 4
out of 6 flourmills in Kozhikode District.

Plans are on the anvil to revive the operations of a defunct flour mill of 100 TPD
capacity located at Kuttipuram which was already acquired from the KSIDC in 2002. The
PARISONS Group is already a brand presence in South India, especially Kerala with an
established market, distribution network and high brand equity for its products coming from
its existing four units namely:

Parisons Roller Flour Mills (P) Ltd.

Yenkey Roller Flour Mills (P) Ltd.

Khemka Flour Mills (P) Ltd.

Kodandram Roller Flour Mills (P) Ltd.

7
LOCATION:

The PARISONS GROUP, having its corporate office at 6/1183,Kunhipari building,

Cherootty Road, Kozhikode, Kerala, India is the largest manufacturer of two basic food
commodities –Wheat Flour and Edible oil. The name is derived from the name of late
KUNHIPARI the illustrious scion from a well known business family in North Kerala. The
PARISONS GROUP was founded by his industrious four sons. It was started with a humble
beginning as a trading outlet in the business hub of Malabar in the year 1982. The dynamic
business expansion started in 1992with setting up of flagship company named The Parisons
Roller Flour Mills Pvt Ltd.

ADDRERSS OF THE COMPANY:

PARISONS GROUP

6/1183, Kunhipari building,

Cherootty Road,

Kozhikode,

Kerala,

India,

Pin: 673 032.

E-mail: parisons@eth.net

Website: www.parisons.com

8
 PARISONS
GROUP

PARISONS ROLLER YENKEY ROLLER

FLOUR MILLS PVT FLOUR MILLS PVT
LTD. LTD

KONDANDARAM
KHEMKA FLOUR
ROLLER FLOUR
MILLS PVT LTD.
MILLSPVT LTD.

PARISONS PARISONS FOODS

AGROTECH PVT LTD. PVT LTD.

PARISONS MILLING PARISONS EXPORTS

COMPANY PVT LTD. INC.

SOFT GUIDE PARISONS

TECHNOLOGIES PVT INFRASTRUCTURE
LTD. PVT LTD.

PARISONS ESTATES
BOYCE RUBBER
AND INDUSTRIES PVT
ESTATES PVT LTD.
LTD.

10
 OBJECTIVES

Stimulating demand for appropriate processed foods.

Achieving maximum value addition and by-product utilization.

Creating increased job opportunities particularly in rural areas.

Creating surpluses for exports.

Better utilization and value addition of agricultural produce for enhancement of

income of farmers.

Minimizing wastage at all stages in the food processing chain by the development of
infrastructure for storage, transportation and processing of agro-food produce.

Induction of modem technology into the food processing industries from both
domestic and external sources.

Maximum utilization of agricultural residues and by-products of the primary

agricultural produce as also of the processed food industry.

To encourage R&D in food processing for product and process development and
improved packaging.

To provide policy support, promotional initiatives and physical facilities to promote

value added exports.

11
 MISSION

The continued pursuit of excellence in relation to the quality of its products,

reliability of supply and building of close links with its vast clientele.

To strive hard to uphold its reputation as leader in F.M.C.G.

To abide by rigorous ethical and legal standards in our strategies and in our day-to-
day business activities.

To diversify into other segments.

To generate a climate of loyalty and mutual respect among our employees.

To sustain long standing relationship crucial for onward march with focus on
accelerated growth and development.

12
 VISION

To be a premium Company with a clear focus in future.

To develop market opportunities by creating new and innovative products.

To become the market leader in Agribusiness and provide the world markets with
healthy food.

To employ path breaking technology in all our ventures.

Aspire for, and achieve, leadership in existing areas of operation. Simultaneously,

raise resources and capabilities to move into new areas

13
ORGANAISATION STRUCTURE

AT PARISON GROUP

14
SWOT ANALISYS

15
 S.W.O.T. Analysis

STRENGTH

Availability of good quality raw materials.

Latest technology is used for production.
Company is eco friendly and socially committed.
Co-ordinal relationship between management and employees.
Finished quality products.
Powerful marketing strategies.
Efficient distribution network
Good relationship with trade unions
Good customer relationship

16
 Good communication.
100% capacity utilization.

WEAKNESS

Low quantity of power and lack of power generation facility.

Inadequate investment planning
Lack of good advertisement facilities.
Lesser diversification of business

OPPORTUNITY

To use latest technologies to the production process.

Steady growth of the products.
Good demand for customer product.
To develop new and improved products.
Globalization and liberalization polices open new opportunities to the firm.

THREAT

17
The company can face some marketing problems by competitive firms
Season will affect the raw materials.

PRODUCT PROFILE

18
PRODUCION

Production is the process, developed to create a collection of input elements. i.e.

Energy, capital, material, manpower such as labors used to produce output such as the
finished goods in proper quantity and quality.

WHEAT PRODUCTS:

Wheat and wheat products forms part of the staple diet of almost all Indians. In the
field of wheat products, PARISONS group is the largest manufacturer in South India.
PARISONS LIBERTY brand is the only one brand, which is available through out Kerala
and it is the market leader in this segment.

Major wheat products are:

Maida

19
 Atta

Sooji

Bran.

Maida or Wheat Flour:

It is mainly used in Bakery and Pasta industry. In Bakery industry maida is used for
making Breads, Cakes, Pastry, Naan etc., and while in Pasta industry it is used to make
Spaghetti, Macaroni, Cannelloni, Vermicelli, Noodles etc. It is also used for making Parathas
and Halwa.

Atta or whole wheat:

Atta is used throughout the country to make Chapathis, Roti and Puries. It is one of
the largest selling flour in the country.

Wheat Semolina or Sooji:

Wheat Semolina or Sooji is mainly used in Pasta industry to make Macaroni,

Raccioir, Farfalle etc. It is also for Sweet making, Kesri rawa making and Upma making.

Bran:

Wheat Bran is mainly used for poultry feed and cattle feed industries as raw material.

EDIBLE OIL:

Edible Oil being the most necessary ingredient next only to wheat flour for making
food products consumed by people, it was thought fit that diversification into trading and
processing of edible oil and its trading as a natural choice. PARISONS is the first and one
and only manufactures of refined edible oil in Kerala.

20
 Palmolein is the common people’s cooking medium, it is mainly used for cooking
purposes at homes, bakeries and hotels. The group has also entered the retail market in a big
way PARISONS Liberty Gold Palmolein brand is a premium brand in the market. Palmolein
is available in 15 kg tin, 15 kg jar packing, 1 litre and half litre & 200 ml saches.

PARISONS also manufactures Palmoil in the brand name, Kerala Palmoil which is
also used for cooking purposes.

VANASPATHI AND SPECIALITY FATS:

Here again PARISONS is the one and only manufacturers of Vanaspathi in

Kerala.For manufacturing vanaspathi it has set up a state of the art most modern Hydrogen
plant with Belgian technology for the fist time in India. Vanaspathi is an alternate cooking
medium for tasty preparations. It is mainly used in homes , hotels and other catering
industries for cooking purpose. For the preparation of Biriyani & Ghee Rice vanaspathi is an
integral part and Parisons Liberty Vanaspthi is the most preferred choice for that extra
flavour it gives to cooking these delicious preparations. Parisons Agrotech manufactures
Vanaspathi.

We have two brands of vanaspathi. As far as the sales is concerned Parisons Liberty
has already become on of the leading brands in north Kerala.It has now opened a new Depo
at Ernakulam to enter the southern markets more effectively, where its presents is limited

21
now. The group has got sales points at Kakkanchery, Kuttippuram & Angamali, shortly
Trivandrum will also become a sales point.

BAKERY SHORTENING:

PARISONS group is the first and one and only manufacturer in Kerala of Specialty
fats or Bakery Shortening. It is used in the Catering ,Confectionery & Bakery industry for the
preparation of bakery items. Within a short period of introduction with quality and
PARISONS groups goodwill support it has captured a major share of North Kerala market.
With the introduction of new products it hopes to capture a good part of south Kerala market
also and become a market leader in this segment.

There are 4 brands of specialty fats manufactured by PARISONS:

Prisons Chakra

Dream

22
 Premier No.1

Golden Puff

Parisons Chakra, Dream & Premier No.1 bakery shortenings are used for preparation
of ordinary bakery items like Breads, Cakes, Cookies, Biscuits etc. and Golden Puff is
especially used in the preparation quality Puffs. Margarine, a new product, specially for
Pastries & Cakes will be introduced shortly in the market by PARISONS.

Specialty fats are available in 15 kg Bib, 15 kg Tin & 15 kg Jar.

23
 FUNCTIONAL AREAS

FUNCTIONAL AREAS

COMMODITY TRADING

What began in 1982 as a small business of general merchants and commission agents
for food grains and wheat flour products in the name of N K Mohammed Ali and Brothers
has grown into one of the big trade houses in the market and it can be traced now in the most
respected names of traders in big bazaar of Kozhikode.

24
 Edible refine oils and wheat flour products like Aata, Sooji, Miada ,Rava being very
fast moving food commodities in trading the volume of trade handled by this firm has
increased multifold within a short span of time. This partnership firm can control the groups’
well knit marketing network of dealers and distributors spread all over KERALA. Yet
another partnership concern in the name and stale of PARISONS EXPORTS Inc. does the
international sourcing of basic raw materials in key food of food products of edible oils and
grains..

FLOUR MILLING

Having established a study food hold in trading activity the group embarked on
strategic business expansion mission and setup its first flour mill of PARISONS ROLLER
FLOUR MILLS Pvt Ltd at West Hill, Kozhikode in 1992. Consistent progress is being
attained in this activity and the group presently owns armada of flour mills spread across
different districts in the state of Kerala from Trivandrum Flour Mill P Ltd in Trivandrum Dt.,
Kodandram Roller Flour Mills P Ltd. Angamaly in Ernakulam Dt., Khemka Flour Mills P
Ltd., at Chungam West Hill, in Kozhikode Dt. Etc. All the milling plants are running with
machinery of state of the art technology.

VEGETABLE OIL REFINING

After establishing after market leaders in wheat flour products it was vegetable oil
refining activity waiting for the group to get on with next. In its verification plan the group
launched vegetable oil refining plant at west hill Kozhikode in the name of PARISONS
ARISTECH Pvt Ltd in the year 1996. Ever increasing demand for the refined oil products of
the company like refined bleached and deodorized palm oil, Vanaspathi etc. in the brand
name LIBERTY GOLD prompted the group to increase its refining capacity as a result of
which a different unit in the name of PRISONS FOODS Pvt Ltd was established in KINFRA
food park at Kakkanchery in 2001.

25
INFRASTRUCTURE LEASING

In the continues foray of the group in different types of business the idea of setting up
of Storage Tanks Farm in cochin Port trust area come to mind by sheer necessity. The
inconvenience of associate companies in the vegetable oil refining activities to depend on
other parties for storage purpose could be alleviated. The group garners substantial amount of
rental income by leasing out additional storage capacity in the infrastructure facility to other
interested parties.

ECO TOURISM

Promotion of ecotourism is an activity going by side of Agriculture in Beautiful

Estate and Plantations in the Hilly areas of KERALA state like Mananthavady in Wayanadu
District .The group own vast area of rubber plantation and Tea Estate. The different locations
of the areas are at KK road Mundakkayam in Kottayam Dt, Chirakkara Dt, Talappuzha,
Tatamala, etc. in Wayanadu Dt. Which are the places making our State “Gods Own
Country”.

RUBBER PLANTATION

The Group entered in to plantation segment by acquiring 1665acres of Rubber Estate

and processing facilities located in beautiful part of Kerala state at KK Road, in Idukki
district. The estate comprises of two divisions namely BOYCE Divisions and
PERUVANDANAM Division. Of this area 1400 acres of land is presently cultivated. About
200 acres of non cultivable Land is having rich deposit of SILICA About 30 acres of land
consists of the roads buildings and other infrastructure facilities. The estate has drying yard
smoke house for the total area and crepe factory to produce crepe rubber. Spurred by the
increased level of prices of raw rubber the Company is poised to show impressive results.

26
EXPORTS

The Export Division of the Group was set up with its corporate headquarters at
Calicut. It is engaged in trading of edible oils after packaging. The firm purchases the oils
from other Group Units who are major importers. A Cochin office was also set up to speed
up the import operations of the group.

Our exports division caters to the needs and requirements of all our overseas buyers. Over the
years, we have experienced continuous growth both in terms of physical and volume of
production allowing us to be one of the most competitive exporters in India.

27
 QUALITY CONTROL, SAFETY PROCEDURES

AND ENVIONMENTAL POLICY

FUTURE EXPANSION PROGRAM

Government of India has realized the necessity of participation of private sector in

developing infrastructure facilities like (1) Development of ports (2) Leasing out Port assets
(3) Construction/installation and operation of cargo births, container terminals (4)
Warehousing (5) Container freight stations (6) Storage facilities etc. The promoters of the
group have in their mind a passionate desire to improve the existing infrastructure facilities at
BEYPORE PORT of Kerala

28
 PARISONS GROUP has just entered into the buswiness of coconut oil with its own
liberty branded pure quality oil which is most favored cooking medium of Keralaits.
Intensive programs are in the pipeline to boost up this business not only in and around the
home state but also to Gulf countries.

Brand building finds a place in the list of future activities as an intensive marketing
activity for TEA producer in the own estates of the group. Plans to establish chain of Super
Markets of different products of own brand bye ways of franchisee business are also
contemplated seriously.

COMPANY STATUS
PARISONS GROUP gets ISO- 9001:2000 Certification and HACCP certificate (Kerala Govt
Quality Certification).

QUALITY CONTROL

We at Parisons believe quality is of paramount importance in customer satisfaction.

Our commitment to quality starts right from the procurement of raw materials and continues
till the final products are packed for delivery. Our ultimate objective is to bring continuous
development by incorporating the latest technology that help us in achieving better quality.

Our incomparable state-of-the-art infrastructure consists of well-equipped and high-

tech plants to cater to the increased demand of our products. Our range of products is tested
and quality checked by our in house labs provided with latest state of the art equipment. We
have in-house facilities for bulk packing to small packing and all the operations are
performed in dust free and hygienic conditions.

We believe in competing with ourselves and this encourages us to increase our

manufacturing potentials and to augment them from time to time. We are a customer driven
company and aim to achieve "total client satisfaction" through timely delivery, right quality
and competitive prices of the products.

29
 SAFETY PROCEDURE
PARISONS Group has separate fire and safety officers. They are well trained
crew. Safety procedures of PARISONS Group match the industry standards. It follows strict
safety procedures laid down by its manuals. Safety awareness is considered as a prime area
for employee training.

ENVIRONMENTAL POLICY
PARISONS Groups of companies aware of their commitment to the society.
A healthy environment is inevitable for sustained development. This company’s procedures
are environment friendly. This company uses modern equipments for monitoring ambient air
quality.

MAJOR MANUFACTURING UNIT

PARISONS FOODS Pvt. Ltd.

The escalating demand for the Group’s edible oil brands prompted PARISONS
Group to increase its refining capacities. Moreover the Group had to devote the entire

30
capacity of the first unit for refining of edible oils though the unit was intended for the
manufacture of Vanaspati also. A second unit for edible oil refining was set up under a new
Company PARISONS FOODS Pvt Ltd. This 150 TPD Plant was commissioned in the
KINFRA Food Park, Kakkanchery, Malappuram District and the company started production
by the end of the year 2001. The capacity of this unit has been expanded from 150TPD to
300 TPD by May 2003.

Later in 2004, an additional plant was commissioned in the factory to fractionate

RBD Palmolein from RBD palm oil, which helped the concern to avoid importing of Crude
Palmolein, which had become unviable due to customs duty structure. This plant has an
installed capacity of 300 TPD.

PARISONS Liberty, Coconut Tree, Chakra and K Brand, household names today, are
the products of these manufacturing units. As three out of 4 units are concentrated in Calicut
setting up of a unit in Kuttippuram has the locational advantage, the major consumer of
wheat products in Kerala being the Malappuram District. Raw materials for the mills are
bought in bulk by rakes from centers in UP, Haryana and MP.

By the revival of the unit the PARISONS Group will be having 5 milling units in
Kerala with a capacity of 700 tones adding luster and glory to their fame as the largest
manufacturers of wheat products and edible oils in South India.

MILLING CAPACITY – WHEAT BASED PRODUCTS:

31
Sl. LOCATION OF MILLING FACILITY MILLING CAPACITY
No PER DAY[IN MT]

PARISONS ROLLER MILLS PRIVATE

1 120 TPD
LIMITED,CALICUT
2 KHEMKA FLOUR MILLS PRIVATE 100 TPD
LIMITED,CALICUT
3 YENKEY ROLLER FLOUR MILLS,CALICUT 100 TPD
KODANDARAM ROLLER FLOUR MILLS PRIVATE
4 100 TPD
LIMITED,ANGAMALY
PARISONS MILLING COMPANY
5 100 TPD
LIMITED,KUTTIPURAM
TRIVANDRUM FLOUR PRIVATE
6 100 TPD
LIMITED,KOZHAKOOTTAM
TOTAL 620 TPD

PRODUCTION CAPACITY-EDIBLE OIL BASED PRODUCTS

32
 MNAUFACTURING MANUFACTURING
SL.NO LOCATION OF ACTIVITY
ACTIVITY CAPACITY

1 PARISONS AGROTECH PALM OIL 80 TPD

PRIVATE LIMITED REFINING

2 PARISONS AGROTECH VANASPATHI 25TPD

PRIVATE LIMITED MANUFACTURING

PALM OIL
3 PARISONS FOOD PRIVATE 300 TPD
REFINIG
LIMITED

4 PARISONS FOOD PRIVATE FRACTIONING 300 TPD

LIMITED

TOTAL 705 TPD

Unswerving commitment to quality has helped the company to consolidate a large

and loyal clientele and the company now moves ahead with the global market in its
perspective. Backed by a strong force of dedicated employees, PARISONS is all geared to
forge ahead in the new millennium.

33
 CHAPTER-III

FUNCHTIONAL DEPARTMENTS

34
HUMAN RESOURSE
DEPARTMENT

H. R. DEPARTMENT

H. R.
DEPARTMENT

H. R.

ASSISTANT
35
 The Human Resource department deals with the planning, organizing, directing and
controlling of the human element in an organization and in their training, development and
maintenance.

With the increase in the size of business, manpower has become the most vital factor
in business. Personnel management is a specialized branch of management that deals with
people. Human beings are the principal asset of a business or industry. People are the main
subject matter of personnel management and it is its business to educate employees, line and
staff and supervisors to place a high value of the dignity and work of the individual human
being.

Human Resource Management is that part of total management of an organization which

specifically deals with human resources in respect of

(a) Their procurement.

(b) Their development in terms of skill, knowledge and attitude.

(c) Their motivation towards the attainment of organizational objectives by creating and
maintaining an organizational climate conclusive to such development.

The group has well experienced and quality workers in each unit. In the production
process all units are similar so they need the same amount of man power. All employees are
well qualified and show their ability I their respective fields. The employees are recruited via
contractors, personal contract or by advertisement in news papers. even though they have a
definite training schedule, there is no need to give special training as the elements of training
prescribed will be incorporated by the employee on his own has he becomes familiar with his
work.

Each division forwards their manpower requirements to HR division. A requisition

can be routed by a line manager through the divisional head to GM, HR. The HR divisions
studies and analyses manpower requirements and puts its comments on each position. After
compilation of all the requirements with HR comments these are forwarded to the manpower
committee. The manpower committee which comprises of members of Top management, HR

36
and General Manager meets every alternate month to discuss and assess the requirement put
forwards to all divisions. Based on that committee’s recommendations the HR division
processes these positions. The requirement and selection process for Kerala positions are
completed within one month, where as for outside Kerala it takes at least two month.

The H.R dep. takes care their employees by providing provident fund, ERS, gratuity
and looking after medical needs of their employees and families at present the administration
purchase and human resource department is headed by one manager except in administration
where he is assisted by two others there are total of almost 36 people working under him.

RECRUITMENT:

Recruitment function is concerned with discovering the sources of man power

required and tapping these sources. Workers are recruited on the basis of sanctioned strength
in each department employees are selected according to their skill and ability.

ORIENTATION:

All employees of PARISONS group will undergo an orientation program prior to the
start of regular work. This envisages making the organization, its rules, guiding principles
and culture transparent and known to all employees in the concern. During orientation every
employee would receive a detailed job description an explanation about the nature and
essentials of the job in perspective. Clarification if any can be made during the orientation
program.

TRAINING:

The organization understands the necessity of developing skills relevant for every job.
Hence all employees would undergo minimum of sixty hours of training. That covers areas
such as salesmanship. Managerial skills, communication skills and all round personality
development .If the department as certain that additional training program is inevitable, an
employee may be asked to undertake further training.

PERFORMANCE MANAGEMENT:

37
 There would be a development plan for each employee based on the employee
performance appraisal. This would be conducted from time to time.

STRATEGIC H R MANAGEMENT:

It may be understood as the process of formulating, implementing and

evaluating business strategies to achieve organizational objectives analysis as the
environment, formulation of strategies, implementation of strategies evaluation and control
are the phase in the strategic management process. In the company Human Resource
management has taken a good part.

HR PLANNING:

It is the process of an organizations future demand for and supply of, the right
type of people in the right number. The Human Resource Department can initiate the
recruitment and selection. Human Resource Planning is a subsystem in the total
organizational planning. Human Resource planning variously called man power planning,
personal planning or employment planning. Human Resource planning is significant as it
helps to determine future personal needs.

DISPUTES:

It is a smoothly going concern. In future any disputes are found, the HRD is efficient
to recover the disputes. In this concern Trade Union are not to be active.

38
 MARKETING & SALES
DEPARTMENT

MARKETING AND SALES DEPARTMENT

MARKETING
AND SALES
DEPARTMENT

MARKETING SALES
MANAGER MANAGER

39
 ASSISTANT ASSISTANT AREA SALES
MARKETING MARKETING MANAGERS
MANAGER MANAGER

Marketing refers to all the activities involved in the creation of time and place
utilities. Being South India’s Largest wheat product producers, PARISONS group producers
a vide variety of brands of Maida, Atta and Oil along with bread shortening.

MARKETING AND SALES:

Forecasting,

New product concept,

Advertising and promotion,

Pricing,

Graphic design,

THEIR LEADING BRANDS IN WHEAT PRODUCTS ARE:

Liberty

Chakra

Coconut tree

Premier No.1

Golden Bell

In refined vegetable oil prisons’ have branded their products under the name of PARISONS
Liberty (palmolein). Liberty is their premium brand .The remaining brands are all in sale in
the respective places where they are produced

At Present to aid their marketing and sales, they have their own trucks for their
transport of their goods produced ensuring fast and speedy dispatch, they ensure the quality
and quantity of their goods produced so as to upkeep their premium. They also have
competitive pricing for their products. they have a selected ad budget.

40
 Their products are given maximum ensuring through FM Radio. This is because, their
products are mainly used by bakers and grocers who use them in bulk who would not be able
to view PARISONS ads shown in the TV. But FM radio is available everywhere. For the
households, they do advertise in the television as well

Apart from this their major expanse in marketing also goes in for professional and
brand building activities such as:

ADVERTISEMENT:

The word advertising originates from the Latin word ‘advertise’ which means to
learn. Advertising is a multi dimensional activity. Advertiser entrant the task of executing
their advertisement message through approval created advertisement campaign to the
advertisement agencies make use of many professional and free lancers

to create advertising. Advertising can often be instrumented in “opening the extend of

advertises line product explaining the position of the company in the industry and its policies
towards”.

The company has been advertising its product through various channels in a significant way.
Advertising is a big business and rank among the top industries of the world. The growth of
advertising industry in any country is in direct relation to the level of business activity and
health of its economy.

They have retail counters at big bazaar. They also have direct representatives for market
study. They also outsource professionals for conducting surveys for specific purposes.

Marketing department is headed by marketing manager, who is assisted by two assistant

managers.

BRANDING:

Brand name is the part of a brand that can be spoken including letters words and
numbers. Brand mark is a part of the brand which appears in the form of a symbol or design.
Branding means giving a name to the product by which it will become familiar to the public.

PACKAGING & LABELLING:

41
 Packaging is one of the elements of marketing mix. The significance of
packing has increased these days because of severe competition in the market and rise in the
standard of living of the people. The products are packed by air tight and attractive wrapper.

Labeling is an integral part of packaging. It gives verbal information about the

product and the seller.

PRICING:

Pricing could hold some objectives like profit maximization, product status,
survive to the competition etc. To stabilize the product price to the market at large. Pricing
should be affordable to the customers.

PRODUCT POSITIONING:

Position stands with the selection of a segment in witch to complete. If a product is up to the
consumers expectations, it will enjoy a strong position in the market.

CONSUMER BEHAVIOUR:

Market consist of buyers, hence it is the behavior of buyers. Business enterprise without
having consumer understanding, cannot fulfill its obligation of consumer satisfaction the
marketing department must study the wants, needs, preference, and buying behavior

CHANNELS OF DISTRIBUTION:

The product has been developed, produced, and price is determined. The next step is
distribution- to bring it to the market and delivered to the customer.

Manufacturer Wholesaler Retailer Consumer

TRADEMARK:

Trademark is the legal term when a brand name or a brand mark is registered
and legalized, it becomes a trademark. The trademark of PARISONS Group of Companies is
under PARISONS.

SALES:

42
The term "Sales" is used to refer to the channels through which a product is sold in the
market place. Often, a distinction is made between wholesaling and retailing channels.
Wholesaling refers to those functions of gathering products, breaking lots into smaller units
and distributing to retailers. Retailing refers to the location where the end customer can
directly purchase the product.

The sales department looks into various activities in connection with both domestic and
export sales, delivery after sales etc. this section is under the direct control and supervision of
the sales in charge.

43
 FINANCE & ACCOUNTS
DEPARTMENT

FINANCE AND ACCOUNT DEPARTMENT

DEPUTY
GENARAL
MANAGER

44
 ADMINISTRATIVE
AND FINANCE
DEPARTMENT

FINANCE AND
A/C’s
DEPARTMENT

MANAGER MANAGER

ASSISTANTS
AND CLERICAL
STAFF

Finance is an important aspect of business, one of the factors of production. Today

economy revolves around money. Finance is concerned not only with effective and efficient
utilization of funds. It is vital for the existence of any firm. It is also considered as the life
blood of an organization. Financial management is very effective in an organization for the
smooth working. For this a special officer is appointed as the finance manager. He is
concerned with procurement of funds and effective utilization of collected funds. The
important functions of the finance manager is the collection of the money from customers,
payment to the creditors, daily banking of collection and keeping of all records, filling of
returns payment to advertiser, forecasting of future finance and their availability and so many
activities related with the finance.

The most important function of the accounts department is the preparation of the
financial statements. Two basic financial statements are prepared for the purpose of external
reporting.

1. Balance Sheet

2. Profit and Loss account.

These statements are recorded in the company’s annual report. For internal
management purposes, i.e., planning and controlling, much more information that contained
in the public financial statements is needed. The objective of financial statements is to assist
in decision-making.

45
FINANCE:

General accounting,

Accounts receivable,

Accounts payable,

Credit,

Cost accounting,

Budgeting.

The PARISONS flour mills was commenced with initial invest of Rs.13 lakh with
long term loan from Kerala State Industrial development Corporation(KSIDC).Rs.24 lakh
were raised by issuing shares and rest as unsecured loans.

The group does banking business with most commonly The Federal Bank where they
have a c/c account with an L.C limit. Apart from them ,they also have business relation with
Union Bank, State Bank Of India(SBI), UTI(AXIS) Bank, State Bank Of Travancore(SBT)
and they also have KSIDC for two projects.

PAYMENT OF WAGES

The cash department deals with the payment of wages of the workers.

PURCHASE OF OFFICE STATIONARY

An indent for material is sent to the cash department for the purchase of office
stationary. The materials required by the departments are purchased by the cash
department and are their send to the particular departments. The indent for material after
the purchase is there after documented.

CONVENTIONS

The financial statements are prepared under the historical cost convention in
accordance with accounting standard, that was relevant to the Companies Act of

46
1956.Accounts are maintained on accrual basis, except in following cases which are
maintained as cash basis.

 Insurance claim
 Investment on income tax refund
 Dividend from shares

47
 PURCHASE
DEPARTMENT

48
 PURCHASE DEPARTMENT
PURCHASE
DEPARTMENT

MANAGER MANAGER

ASSISTANCE
AND CLERICAL

Purchase of goods is a never ending process as long as a factory is in operation. The

purchase department coordinates with the other departments in the firm and does the
purchase of any commodity procured by them the following process is followed by the
purchase manager while making a purchase:

Preparation of Indent.

Receipt of offers and quotations.

Evaluating the offer technically.

Commercial tabulation of offer.

Getting technical confirmation from indenters.

Technical and commercial negotiation.

Placing the order.

Order confirmation from suppliers.

Dispatch of material by suppliers.

Receipt of material by stores.

Issue of goods receipt note.

Confirmation by factory or intender.

PURCHASE PROCESS:

49
 Whenever there is a requirement for raw materials, the purchase department is
informed by the production department through an indent for raw material. Purchase is made
from approved suppliers only. A purchase order is issued to the supplier detailing the product
specification, date of delivery, price and verification requirements, acceptance criteria,
statutory and regulatory requirements, trace ability requirements etc. The purchase orders are
reviewed by purchase department for adequacy and correctness as the requirements before
communication to the suppliers.

PROCEDURE FOR RAW MATERIAL RECEIVING:

Raw material received by the company by supplier’s name, item, description,

vehicle number, and load number, quantity as per supplier declaration. The incoming raw
materials are inspected by the security in charge of load will not be accepted and the
supplier’s are duly informed. The material should inspected by the quality control officer’s of
the time of the

Acceptance and ensure the right item should be received from the supplier.
The verification should be recorded in the relevant register. The verification is satisfactory
the load should be kept the Warehouse. The inventory, ware housekeeper should be entered
the amount of raw materials received in the respective stores ledger.

RECORD MAINTAINED IN THE PURCHASE DEPARTMENT:

 Purchase requisition
 Purchase Order
 Supplier assessment sheet and rates

RECORDS REQUIRED FOR TRANSPORTATION:

 Sale bill or invoice

 Delivery note.

50
 LEGAL
DEPARTMENT

51
 LEGAL DEPARTMENT

The legal department has a legal adviser, who assists the firm on their legal issues the
legal adviser place the role of a company representative who indirectly pulls the strings in
low on legal issues. They meet up with other members of the legal system and advocate the
group on their decision making regarding the legal issues concerned with their operations.

THEY DEAL WITH ISSUES REGARDING:

Tax maters

Customs issues

Labor issues

Acquisition documentation

Environmental issues

Revenue from buildings owned

Depts. To the company

52
PRODUCTION & WAREHOUSING
DEPARTMENT

53
 PRODUCTION AND WAREHOUSING DEPARTMENT
PRODUCTION
DEPARTMENT

PRODUCTION

Production function of a business is concerned with the creation of a product or a

service. It is the process which converts the raw materials into finished products, required to
satisfy customer needs and desires.

Production function operates primarily to satisfy customer demands relating to

quality, quantity, price and most importantly the timing of delivery of the product as
scheduled in the orders.

It must permits production activities to operate in an economical and efficient manner

because cost of production is a vital factor in facing the market competition and is ensuring
normal profit or return on investment.

This department is individually controlled by each plant separately .this is because

each factory ahs got its own production requirements with its own production process and
capacity. Also the plants are located throughout Kerala making centralized productions very
difficult

PARISONS has an effective day out of machinery. The machines work around the
clock 24 hours a day the plant at Kozhikode was set up in 1992.in 2000 its capacity has
increase from 80 tons to 120 tons per day, making it one of the biggest plants in kerala the

54
plant is build in a four story building. It is in such a way that expansion of capacity can be
done easily it is placed in an area of three acres in west hill, Chunkam touch in the national
highway making transportation easier

CHAPTER-IV

SUMMARY

55
 FINDINGS

Company is using outdated machinery for the rice production.

Lack of proper advertisement.

Good managerial efficiency in very face of the company.

Good relation between employer and employee.

Quality of row material is not sufficient to compare with other competing

company.

Improper planning leads to wastage of material.

56
 SUGGESTIONS

Appoint experienced and efficient employees to the organization.

Proper advertisement should be adopted.

Prevent unnecessary wastage of material.

Implement new machinery in the factory.

Expansion of warehousing.

57
 CONCLUSION

All the employees of the organization are contributing their best. PARISONS
successfully maintains cordial relationship to every employee. At present, the growth of the
PARISONS is rapid as its expansion is a continuous process.

In the earlier chapters we saw how the business activity is going on in

PARISONS Group of Companies. Earlier chapter deals with the industry profile and
company profile. Then we go through different departments in PARISONS Group of
Companies and saw how each department is important in the organization functioning.
Disclose the strength and weakness of the company in next pages and we go to the findings
and suggestions.

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