project report on dhanhar exim by sunny gandhi and sunil ambolikar
1. 1
A
Report
On
Summer Training at
“Dhanhar Exim Pvt Ltd”
From: 29th April, 2009 to 15th June,2009
In The Partial Fulfillment Of
BBA Program.
Submitted By:
36-Sani Gandhi
7- Sunil Ambolikar
S.Y. BBA
DIV – I
Submitted To :
BRCM COLLEGE OF BUSINESS
ADMINISTRATION, SURAT
Academic Year-2012-13
BRCM COLLEGE OF BUSINESS ADMINISTRATION, SURAT
2. 2
Declaration
We hereby declare that the project report Entitled A Study on
“Dhanhar Exim Pvt Ltd.” is result of our own training work carried out during AprilJune 2013 and has not been previously submitted to any other university or institution for
any other examination and for any other purpose by any other person.
We will not use this project report in future to use a submission
to any other university or institution or any publisher without written permission of our
guide.
We also promise not to allow any other person to Copy or
publish any part of this report in any form.
If We are found/caught as defaulter of above declaration, I
Know that my present or future submission may become in valid and college has the
right to this thesis.
Name of Student
Sani B Gandhi
Sunil R Ambolikar
Date
Place
BRCM COLLEGE OF BUSINESS ADMINISTRATION, SURAT
3. 3
ACKNOWLEDGEMENT
We would like to thanks to Veer Narmad South Gujarat University to
include this summer training in the curricular of B.B.A. program that made us gain the
practical knowledge in the corporate business world.
We are honored to Mr.Jayesh Desai, the director of B.R.C.M. college of
Business administration and our all faculty members who always offered us useful
suggestions on the project.
On the completion of our project, we would like to express my sincere
thanks to all those who have guided, advised & supported us during my project work at
Dhanhar Exim Pvt ltd.
We take this opportunity to depict our sincere and hearty indebtedness to
the management of Dhanhar Exim Pvt Ltd. for giving us an opportunity to serve in esteem
organization.
We thankful to Mr. Hitesh Vankawala & Mr. Sandip Vankawala(Head of
Marketing Department and Finance department), Mr. Jignesh Vankawala and Mr. Nilesh
Vankawala (Head of production and quality control department), Mr. Dhansukh Vankawala
& mr. Jagdish Vankawala(Head of HR Department) for giving us the precious opportunity to
work at Dhanhar Exim Pvt ltd. And for our project guide. They gave us the detailed
information about their system and spend their valuable time for us.
At last, we thank all our friends and members of Dhanhar Exim Pvt Ltd for
their co-operation and passion and encouraged us to carry out the project and try our best.
Your Sincerely
Sani B. Gandhi
Sunil R. Ambolikar
Date
Place
BRCM COLLEGE OF BUSINESS ADMINISTRATION, SURAT
4. 4
No.
Chapter
Page No.
1
Introduction
08
2
Marketing & Sales functions
15
3
Production Management
49
4
Finance & Accounts
78
5
Human Resource Management
101
6
Experience and Conclusions
140
7
Bibliography
141
8
Annexure
142
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CHAPTER 1: INTRODUCTION
1) Industry Details
2) Company Details
3) History of organization
4) Location of offices, branches and factories
5) Detail of promoters & owners
6) Performance highlight of Dhanhar Exim Pvt ltd
7) Organization structure of the company
8) Future plans of organization
CHAPTER 2: MARKETING & SALES FUNCTION
1)
Detailed organization structure of marketing department
2)
Types and classification of products & their sales volume
3)
Details of competitors
4)
Unique feature of various products of company
5)
Customer segmentation & targets markets
6)
Distribution net-work
7)
Sales procedure
8)
Study of how customer orders are processed
9)
Documents related with sales
10) Comparison of 4Ps of various products of organization With competitors
11) Study of generic level competition
12) Pricing polices
13) Promotional and advertising polices
14) Taxes applicable on sale activity
15) Study of control system & reporting system designed for Sales employees working in
field
16) Different reports generated in Marketing Management
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CHAPTER 3: PRODUCTION MANAGEMENT
1)
Detailed organization structure of production department
2)
How production plan is prepared from sales plan
3)
How production plan is converted in material requirement Plan & ultimately in
purchase plan
4)
Analysis of plant location considering various factors
5)
Plant lay-out of entire factory showing positions of various departments buildings
6)
Internal plant lay-out of main production departments
7)
Types & classes of material handling equipments
8)
Inventory control system
9)
Inventory valuation method
10) study of material codification system
11) Different records kept in store
12) Material receipt procedure
13) Material issue procedure
14) Documents related with material issue & receipt
15) Purchase procedure
16) Documents of purchasing
17) Maintenance planning system
18) Records related to production operations at different Machines & with different
department
19) Quality control system
20) Quality control guidelines of raw materials & finished Products
21) In process quality control guidelines
22) Documents related to quality control
23) Different reports generated in production department
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CHAPTER 4: FINANCIAL MANAGEMENT & ACCOUNTS
1.
Revenue budgeting
2.
Capital budgeting
3.
Costing method
4.
Cost structure
5.
Costing sheets & classification of costs in different Categories
6.
Working capital management
7.
Preparation & analysis of funds flow statement
8.
Internal audit polices financial control system
9.
Accounting polices
10. Methods to calculate depreciation
11. P&L account & balance sheet by ratio analysis, Common sized statement
CHAPTER 5: HUMAN RESOURCE MANAGEMENT
1)
Study of organization structure to decide what type of Organization structure is
designed for company
2)
Study of basis departmentation in each department
3)
Human Resource planning process
4)
Recruitment
5)
Selection process
6)
Documents related to recruitment & selection
7)
Sources of recruitment
8)
Job description & job specification for various positions
9)
Performance appraisal process and documents
10) Promotion, demotion & increment policy
11) Different welfare activities
12) Employment records kept
13) Training & development
14) Induction training
15) How training needs are identified for existing employees?
16) Lab our relation & activities of trade union
17) Wage & salary administration &Incentive & motivation system
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Industry details
History of Masala industry
From time immemorial, India has been considered as the “spice bowl of the world”. The
history of Indian spices is almost as old as the “human civilization of spices”
We all have read in school history books that voyagers from around the world have
travelled to India in search for the spices. But the history of our spices more than what is
recorded, more than 7000 years old. Even before Greece and Rome were discovered, the
sea voyagers were sailing with Indian spices, perfumes and textiles to their homelands.
Ancient cultures and dynasties were spending major portion of their treasury on Indian
spices, silks, brocades, Dhaka Muslin and cloth of gold, etc. It is believed that the
Parthian wars were being fought by Rome largely to keep open the trade route to India.
Vasco Da Gama set sail southwards with four ships from Port of Lisbon in Portugal at the
start of 14th century. His aim was to search for a new route to India and rest of Asia. The
journey that lasted 2 long years, took Da Gama and his crew on 39000 kilometers round
trip, around the continent of Africa to India and then back to Lisbon. Only 2 out of the 4
ships made it back home, but they brought a cargo of spices and other products worth 60
times the cost of the said voyage.
It is also said that Indian spices and her renowned products were the main temptations for
crusades and expeditions to the East. The cost of the spices today is menial, but this was
not always the story. Indian spices were once a royal luxury and that men were willing to
risk their lives in quest of them. Though it were the Dark Ages, but there were rich
people who had gold to exchange for pepper and cinnamon.
The spices of the East were valuable in those times, during these Middle Ages, a pound
of ginger was worth a sheep, a pound of mace worth three sheep or half a cow. Pepper,
the most valuable spice of all, was counted out in individual peppercorns, and a sack of
pepper was said to be worth a man`s life.
By the year 1000 A.D. Arabians had conquered the Indus valley, what is now India. They
brought the cumin and coriander that mixed with Indian pepper, ginger and turmeric
make up the base of so many South Asian dishes. In India, Arabian traders got the rare
and exotic spices of the Far East from local spice merchants. India had spent the previous
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two millennia spreading its culture to the Spice Islands of the east. Such was the
importance of spices those days.
Broadly, there are two main subdivisions of spices one being the major spices and the
other is minor spices. For example the spices like pepper, cardamom, ginger, turmeric,
chilies etc., comes under major category. The important minor spices grown in India are
ajwain, aniseed, caraway, celery, coriander, cumin, dill seed, fennel, fenugreek, garlic,
onion, saffron, vanilla etc.
Company details
DHANHAR MASALA BHANDAR Pvt. Ltd. introduces itself as a leading manufacturer
and exporter of Indian particularly Masala‟s, Hing‟s and others. Established on 1966, the
company has always followed the philosophy of providing quality products and services
to our ever increasing clientele. Today DHANHAR has become a name synonymous to
Indian spices, its tastes and aroma; and has become a name of repute in spices and hing
industry.
The name “DHANAHAR” itself connotes “MASALA”
DHANHAR MASALA starting in the home place and its first product is “hing”.
Meaning of the Dhanhar name:
DHAN means “LAXMI”
HAR means “MAHADEV”
DHANHAR name comes of the two dynamic people, first is DHANSUKHLAL and
second is HARKISHANLAL.
DHAN comes of the DHANSUKHLAL &
HAR comes of the HARKISHNLAL
History of the organization – an Overview
Thirty Eight year back, two dynamic entrepreneurs, Mr. Dhansukh Chhabildas
Vankawala and Mr. Jagdishchandra Harkishandas Vankawala; pioneers in spices / hing
industry and connoisseurs of Indian tastes, joined hands together to start Dhanhar Masala;
supported by Mr. Bipinchand Chhabildas Vankawala; a mechanical engineer by
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profession. The firm started as a gruh udyog, manufacturing hing, graduated in terms of
size and volume; obviously due to healthy response from the market. In the 1972, a
manufacturing plant was established in Surat. The company started manufacturing spices
in 1976 with a single product “Dal Shak Masala” and has consistently climbed up the
growth ladder since. The company at present is manufacturing more than 30 different
spices. For bulk orders, we can customize the products according to your requirements.
In 1990, a major milestone was achieved when the company got “AGMARK”
certification for its Hing. In 1995, same certification was accorded to Spices. When
Company started, it goes in the loss, but after some time loss converted in the big and big
profit. In the 1977 the price of the “Dal Shak” masala was just 7 RS. In 5 Kilo. So, it‟s
very chipper. In the 1988 Hing‟s packaging stared and published name of the
“BHANDHANI HING” and also developed the brand name of Dhanhar Masala. All the
production by manually, no machine work of this time. On this time means, 1988; the
staff was just 10 people in Dhanhar Masala and now the staff is about 62 people in
Dhanhar Masala. Manually work‟s time period is 1988 to 1996, means about 8 year.
Location of its office, branch and factories
Location of manufacturing unit
167,Ashwinikumar road, Nr, shamshan
bhumi ,Fulpada, Surat, Gujarat, India
Location of its administrative office
5/354 Dhanhar house, Bhajiwadi pole,
Bhagal char rasta, Bhagal, Surat –
395003 Gujarat, India.
Details of promoters and owners:
Under the able guidance of the promoters, the company has reached to a position, par
excellence. Mr. Hitesh Vankawala (B.Com. L.L.B.) And Mr. Jignesh Vankawala
(B.Com), able sons of Mr. Dhansukhbhai joined business in 1992 and 1998 respectively.
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Also the able sons of Mr. Jagdishchandra, Mr. Sandip Vankawala (B.Com.) joined the
company in 1992 and 1998 respectively. Mr. Hitesh and Mr. Sandip are looking after
Sales Department whereas Mr. Jignesh and Mr. Nilesh are looking after Production and
Quality Control Departments.
The new entrants are following their fathers‟ footsteps and have the enough dynamism
and acumen to lead the company to new heights.
The company boasts of modern machinery and high technology to attain the quality
without losing the traditional aroma of Indian spices. Our products are well known for
their high purity.
The reliability, flexibility, competitive pricing and prompt service have been the pillars of
the company‟s reputation and success.
Performance highlight of Dhanhar Exim Pvt ltd:
Company has more success in Masala industries and has won many awards in this field.
The awards are listed as following
Name of the award
Year of winning
1. UDHYOG
2000
2. VYAPAR
2002
3. UDHYOG
2003
4. MERA BRAND
2004
5. GRAHAK SURAKSHA SAMITI CERTIFICATE
The company has created the image of a good supplier of Masala in south Gujarat
market.
Dhanhar Masala is also known for its “chip rate and best quality.
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Organizational structure of Dhanhar
Dhanhar Exim Pvt
Ltd.
General manager
Head of
marketing
department
Head of
production
department
Head of finance
department
Head of human
resourcces
department
Mr. Jignesh
Mr. Hitesh
Mr. Hitesh
Mr.Sandip
production
manager
Agent
Accountant
assistant
Assistant
clerk
cashier
peon
workers
Peon
clerk
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Organizational profile of Dhanhar Exim Pvt ltd
Year of establishment
1964
Legal status of the firm
Private Ltd. Registered under Indian
companies act 1956
Income tax registration no.
AADCD2614D
Central sales tax no.
24720601590C
Value added tax registration no.
24220601590V
Import Export code
5210003132
Nature of Business
Manufacturer, exporter, and wholesaler
Major markets
Indian subcontinent
Turnover of finished goods
4 times/ year
Future plans of the Dhanhar Exim Pvt ltd.
To establish a strong market place in the whole Gujarat market. To make reputation
in market.
They are thinking to expand product line of flour which is including water chestnut
flour and now thinking to make a flour for locha and khaman flour.
They are planning for installing new machines for packaging which will help them in
cheaper packaging and faster.
They are about to make more Masala for example bikaneri papad Masala, chicken
gravy Masala, Mamada Masala(non vegetarian category)
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1. Organization Structure of marketing department
Marketing
Department
Mr. Hitesh
(Head 1)
Mr. Sandeep
(Head 2)
Agent
clerk
peon
o Here at Dhanhar marketing department is being managed by two heads Mr. Hitesh
and Mr. sandeep respectively
o Agent and sales person works under two heads
o Clerk is at 3rd level in the hierarchy
o Peon is working under the head of a clerk.
2. Types and classification of Products of Dhanhar
o
There are many Masala product of DHANHAR MASALA industry.
o
Here at Dhanhar they have mainly Three product line Which are below here:
1. Spices
2. Flour
3. Chick peaces
o
All the product categories are shown in the following table.
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Products
A. Spices
Basic spices
Value added spices
1. Asafetida Powder
2. Punjabi Gravy Masala
3. Kashmiri Chilli Powder
4. Pomegranate Powder
5. Black Pepper Powder
6. Rajwadi Garam Masala
7. White Pepper Powder
8. Biryani Pulav Masala
9. Coriander Powder
10. Sandwich Masala
11. Chili Powder
12. Tandoori Chicken Masala
13. Chiwada Masala
14. Tea Masala
15. Dry Ginger Powder
16. Chicken Masala
17. Dry Mango Powder
18. Undhiyu Masala
19. Red Chili Powder
20. Vada Pav Masala
21. Turmeric Powder
22. Pickle Masala
23. Ginger Powder
24. Patra Masala
25. Jeera Powder
26. Kesar Milk Masala
27. Hing Powder
28. Jaljira Powder
29. Kashmiri Chilli Masala
30. Kasuri Methi
31. Kitchen King Masala
Value added spices
32. Chhole Chana Masala
33. Meat Masala
34. Dabeli Masala
35. Mutton Masala
36. Garam Masala Powder
37. Nimbu Soda Masala
38. Egg Curry Masala
39. Panipuri Masala
40. Fish Masala
41. Pav Bhaji Masala
42. Butter Milk Masala
43. Fruit Chaat Masala
B. Water Chestnut flour
C. Chick peas
D. Mahendi Powders
Here company do not have sales volume for individual products
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3. Details of Major competitors of Dhanhar Exim Pvt ltd:
1. Ramdev Masala
India, the Queen of Spices, has always attracted the world with her exotic masalas. In
fact, the connection goes back many centuries. Ramdev has preserved the Indian values
in all its products ever since it started as a small unit in 1965, in Ahmadabad, India. A
small step became a giant leap in no time. But there was a binding force, a commitment
that helped Ramdev keep its promise of purity and freshness in its products for all these
years. Ramdev‟s immense belief in the philosophy of „reaching a customer‟s heart
through quality‟ has enabled it to spread the rich Indian heritage to millions of homes all
over the globe.
2. M.D.H Masala
Mahashian Di Hatti Limited is an Indian manufacturer, distributor and exporter of ground
spices and spice mixtures under the brand name MDH. It specializes in several unique
traditional blends of spices suitable for different recipes. The company was founded in
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1919 by Mahashay Chuni Lal as a small shop in Sialkot. It has since grown in popularity
all over India, and exports its products to several countries. It is associated with
Mahashay Chuni Lal Charitable Trust. The MDH brand name is very well known
throughout India
3. Everest Masala
Everest Spices is an Indian manufacturer, distributor and exporter of ground spices and
spice mixtures under the brand name Everest. It is India‟s largest spices brand based in
Mumbai. More than 20 million households use Everest spices regularly. The brand is
stocked by 400,000 outlets in more than 1000 towns across India. Everest is a major
exporter to the US, the Middle East, Singapore, Australia, New Zealand, East Africa and
other countries. More than 3.705 billion packs of Everest sold each year. There more than
42 blends under the Everest brand name.
4. Catch Masala
Catch Spices is India‟s foremost spices brand known for its matchless product quality and
innovative approach. Catch spices are ground using the unique state-of-the-art Low
Temperature Grinding (LTG) technology, which prevents the evaporation of volatile &
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delicate oils from spices. Catch Spices thus retain the original aroma and wholesome
flavor of authentic spices. The complete assortment comprises of a variety of salt and
pepper sprinklers and a diverse range of whole, ground and blended spices. Catch Spices
are packed in food grade metal-lined cartons, flexible laminates and convenient
composite cans available in a variety of pack sizes
5. S.k. Masala
Founder Mrs. Kulusumben K. Panjwani has started the business 45 years ago in Surat
city, Gujarat. Her elder son Mr. S. K. Panjwani having very good tasting skills has
shouldered her responsibility on product development & came up with best blends. Few
famous spices from the house of S.K. Masala are " Kashmiri Chilli powder “, " Garam
Masala " , " Chicken Masala " , " Milk Masala " & " Pav Bhaji Masala ".Younger son Mr.
B. K. Panjwani who is a Chairman of Retail Trade in Chamber of Commerce in South
Gujarat from last 7 years & Member of Productivity Council of India got into retailing &
expanded the business across Gujarat & Saurastra .Third generation is also emerging as
back born of S. K. Masala. They have started atomization process at plant & expanded
the business internationally in markets like UK & SA.
6. Nilon’s Masala
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Nilon‟s Enterprises Private Limited was founded way back in 1962 by Shri Suresh B.
Sanghavi as a cottage industry. From a humble beginning, Nilon‟s has today become the
largest producer of Pickles, Tooty-Fruity and Roasted Vermicelli in India. Managed by a
professional and dynamic team, Nilon‟s is now among the fastest growing processed food
company in India.
7. Badshah Masala
In the span of 4 decades, Jhaveri Industries has garnered international acceptance and its
own brand equity in the world spice arena. Under its brand name Badshah, Jhaveri
Industries has been formulating new flavours and aromas through its innovative research
techniques.
Today, Badshah is synonymous with aromatic fervor and genuine quality. Winner of
many prestigious awards, including the "Mera Brand Award", Badshah is the first choice
of households across the Indian subcontinent and is fast emerging as a global player.
With a third of our sales accounting in exports, Badshah has carved a niche of its own in
the international spice market.
The manufacturing unit located at Umergaon, Gujarat has been mandibly supported by
our administration office in Mumbai. Our unique research methodology helps us
understand the latest food and spice preferences, keeping in mind the geographical
location, religion and traditional cuisines of any particular region.
8. Gajanand Masala
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Gajanand Foods Pvt. Ltd., Ahmedabad, was founded and established by Shree
Natvarbhai K. Patel, in the year 1982, with a small unit. At present our company has
grown almost five times than we started with, that is only due to our quality, proper
customer care and our efforts to reach the smallest customer in our city Ahmedabad, our
State Gujarat, our Country India and now in across the globe! Our aim to reach millions
of kitchen can be achieved through customer's love, trust and proper feedback for our
products.
Taking forward the vision of their father, Mr. Jayesh Patel and Mr. Samir Patel have
implemented new ideas and expanded the product range by introducing more and more
innovative products. With the uncompromised motto of customer satisfaction, the
company has defined its business ethics and has crafted its quality policies. This has
eventually made the company a front-runner and a reliable source of quality in the
national as well as global market.
9. Other : Gondal Masala, Vijay Masala, Suhana spices and other local Masala makers.
4. Unique feature of various products
1. Water Chestnut Flour
Dhanhar is the one of the most celebrated Water Chestnut Flour (Singoda Atta &
Rajgara Atta) Manufacturers and Suppliers from Gujarat. Their Water Chestnut Flour is
widely used to prepare different Indian dishes. The hygienic processing and tamper-proof
packing of their Water Chestnut Flour has made it ultimate hit among our clients. The
wide demand of their Water Chestnut Flour testifies our claims of being the prime Water
Chestnut Flour manufacturers and suppliers from Surat, Gujarat.
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Special feature
Made from natural ingredients
Made as per traditional standards which offer premium taste
Offers prefect flavor
Amazing aroma
Freshness assurance
2. Mahendi Powder
o Mehendi Powder, manufactured by Dhanhar, is of the best quality that is used for hand
decoration, for hair coloring and in various ceremonies. their Mehendi Powder is of the
finest quality and has also gained appreciation in other countries. We manufacture pure
Mehendi Powder without chemical and it is instantly used for hair coloring and
conditioning.
Uses
For body & hand decoration
For hair color &conditioning
For hand & body design use
Special Features
100% pure form contains no herbs or chemical
Can be used for hair conditioning & hair color
Perfect choice for marriage and other festive occasion
Colour will last for several days
3. Chickpeas
o The company is chiefly engaged in the manufacturing and supplying of Chickpeas all
across the country. The Chickpeas, provided by them, are known for their excellent taste
and high quality. Cleaned and processed by using the latest techniques, Dhanhar
Chickpeas are highly demanded amidst the widespread clients.
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Special features
Perfect flavor
Amazing aroma
Freshness assurance
Properly cleaned
4. All other spices
o The company is a prime Spices Manufacturer and Supplier in India and Spices are provided in a
wide variety, which is processed by using the premium ingredients. The assortment of Spices
comprises of Asafetida Powder, Biryani Pulav Masala, Butter Milk Masala, Chhole Chana
Masala, Chicken Masala, Chili Powder, Chiwada Masala, Coriander Powder, Dabeli Masala, Dry
Ginger Powder, Dry Mango Powder, Egg Curry Masala and other 31 spices.
Special features
available in many packaging like 50gm, 100gm, 200gm,500gm, 1 kg, Bulk Packing
starting from 5 rupees.
Freshness is being assurance and properly cleaned.
Made from natural ingredients
Tamper proof packing
Hygienic processing
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All other spices are being presented in the following with their special features
Asafetida
Biryani pulav Masala
Special features
Special features
Good taste
Unmatched Taste
Hygienic processing
100% natural ingredients
Tamperproof packaging
Hygienic processing
Pure natural ingredients
Tamper proof packagings
Good scent
Butter milk Masala
Praised For
Give health benefits
Appetizing taste
Made from safe and
natural products
Tamper proof packing
Chiwda Masala
Benefits
Fish Masala
Acknowledged For
Praised For :
Add flavor to food
Helps in digestion
Natural relief from gas
Stomach upset problem
Lower the cholesterol
Different sizes
level
Tamper proof packing
standards which offer
Hygienic processing
premium taste
Widely used in
preparation of chivda
Chili powder
ingredients
Made as per traditional
Coriander powder
Special features
Made from natural
Made from handpicked
Praised For
Offers prefect flavor
Amazing aroma
Freshness assurance
Fruit chaat Masala
excellent quality chilies
Hygienically processed
Perfectly grinded
Matchless freshness
Made from natural
Special feature
ingredients
Made as per traditional
Mouth watering taste
standards which offer
Made from natural
Special feature
ingredients
premium taste
Dry mango powder
Offers prefect flavor
Amazing aroma
Tamperproof packing
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Freshness assurance
Completely fresh
o slightly sour and tangy
taste being used as an
Garam Masala
acid flavoring agent not
loosing color and flavor
for longtime bring used
Ginger Masala
Acknowledged For :
Known For
o
for cooking and medical
purposes
Made as per the traditional
art of spices
o
o rich source of vitamin
a,e and selenium protect
Long shelf life
o
Safe and nutritious
o
Completely natural
sponge puddings to give a
ingredients
warm sweet flavor
against heart disease
and other ailments high
in iron high in
cooking
Kashmiri chilly Masala
carbohydrates helpful in Features
decreasing acidity and
Have an Aromatic odor
Used in tandoori and other
barbecue marinades
Adds flavor to food
Long shelf life
Known For
Essential ingredient in
Good soothing agent
Used in pickles
Benefits
Ginger may also decrease
joint pain from arthritis
Prevent against diarrhea
Prevent against nausea
Folk remedy for cough
and cold
Lower cholesterol
Used in preparing
ayurvedic medicines
Rich source of vitamin E
Kesari milk Masala
Rich source of vitamin A
Considered as stimulant
your tea
Prevent from rheumatic
disorders
Medicinal Uses
Add ginger powder to
Benefits
all mixed spices
Free from additive
Taste enhancer
Prepare a delightful
with seasonal fruits
Natural and fresh
Jeera powder
poor digestion.
Add to cake, biscuits and
ginger punch blending it
antioxidant low in
Use the ginger powder in
Special feature
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As Carminative
Stomach astringent
Hing Masala
Useful in diarrhea and
Mainly used in
Hygienic processing
Tamper proof packaging
ingredients in its
100% natural ingredients
natural products used as
Unmatched Taste
veterinary medicines
preparation tamper proof
packing
Meat Masala
for skin.
Kitchen king Masala
made from natural
ingredients made as per
Nimbu soda Masala
traditional standards
Acknowledged For :
premium taste offers
prefect flavor amazing
aroma freshness assurance
Unmatched taste
Praised For :
completely fresh perfectly
grinded
Made from natural and
rare herbs
Made from natural
Pomegranate Powder
ingredients
Made as per traditional
standards which offer
premium taste
Offers prefect flavor
Amazing aroma
Freshness assurance
mesmerizing taste made
from 100% natural spices
health problems
Eases stomach related
Mutton Masala
Special features
Many medicinal qualities
Act as a coolant helps in
improving appetite good
Specialties
giving health benefits
appetizing taste safe and
Special feature
dyspepsia problems
Benefits
Pani puri Masala
Appreciated For :
Mouth watering taste
Made from natural
ingredients
High in vitamin C
High in potassium
Tamperproof packing
Good source of the B
Completely fresh
vitamin
Contains pantothenic
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acid,potassium and
Appreciated For :
Unmatched freshness
Tamper proof packing
Premium quality
Rich source of fiber and
Reducing heart disease
Purity Assurance
Hygienic tamper proof
packing
risk factors
Perseverance of natural
essence of turmeric
Known For
Samnhar Masala
Made from natural
Made from complete
natural ingredients
pomegranate seeds
Special features
Special features
low in calories
Mesmerizing taste
Turmeric powders
antioxidant polyphones
Rajwadi Masala
Made as per traditional
Tea Masala
Acknowledged For :
Made from natural
standards which offer
ingredients
premium taste
Purity Assurance
Hygienic tamper proof
Made as per traditional
Offers prefect flavor
standards which offer
Amazing aroma
premium taste
Freshness assurance
Amazing aroma
Freshness assurance
Offers prefect flavor
packing
essence of turmeric
White paper powder
Vada pav Masala
Made from natural white
pepper
Made from complete
natural ingredients
Known for
Appreciated For :
Perseverance of natural
Made as per traditional
Undhiyu Masala
Praised For :
Mouth watering taste
standards which offer
Made from natural
premium taste
Give health benefits
ingredients
Offers perfect flavor
Appetizing taste
Tamperproof packing
Amazing aroma
Made from safe and
Completely fresh
Freshness assurance
natural products
Tamper proof packing
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5. Customer segmentation and target market
Segments and respective target market
1. Vegetarian and non vegetarian food eaters
In this segment vegetarian and non vegetarian both segment are targeted.
For Non vegetarian , company needs fish Masala ,chicken Masala, Mutton Masala,
Egg curry Masala, Meat Masala.
For Vegetarian they make near about 30 Masala which are Garam Masala ,kitchen
king Masala, tea Masala,etc.
Segment
Target market
Vegetarian
Vegetarian
Non vegetarian
Non vegetarian
2. Segment based on income ( very poor, poor, average, higher middleclass and rich)
In this segment 3 segments are targeted which are poor , average, higher middleclass
groups.
For poor and average customers they make small packages starting from 5 Rs onwards
For High Income middle class Groups they make Packages of big size and they also
target high quality Basmati Rice
Segment
Target market
Very Poor
Poor
Products offered
Poor
Packages start from 5 to
10 Rs
Average
Average
Packages of 50 grm,100
grm,200 gram, 500 gram
and 1 kg
Higher Middle Class
Higher Middle
All Masala
Class
Rich
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3. Segment based on type of market
a. Customer market ( direct customers)
b. Industrial market ( hotels , restaurants, tea stoles. Food selling vendors)
Here Both segments are targeted
For customer market they target wholesalers, retailers, and Agents.
For Industrial Markets they target mainly Hotels, restaurants and food vendors
because these customers are selling addible items which require large no. of Masala
and company can gain a huge profit.
4. Segment based on habit of eating/ test and preferences in which spicy food eaters and
people love to have Masala in drinks etc.
6. Channel of distribution for Dhanhar
Meaning of Channels of distribution:
According to American Marketing Association, “A channel of distribution, or
marketing channel, is the structure of intra – company organization units and extra –
company agents and dealers, wholesale and retail through which a commodity, product or
service is marketed.”
Marketing channel may be defined as, “A pathway composed of intermediaries, who
perform such function as needed to ensure smooth flow of goods and services from the
manufacturing ends to the consuming ends in order to achieve marketing of the produce
of a company.”
Channel of distribution in Dhanhar Masala
The producer and the final customer are part of every channel. We will use the number of
intermediate levels to designate the length of channel. There are many type of distribution
channel in industry. There are following:
1. Zero-level channel
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2. One level channel
3. Two level channel
4. Three level channel
A. Three level of distribution channel (full distribution channel)
Manufacturer
(Dhanhar masala)
CNF (Super
Stockiest)
Wholesaler/ Agent
Retailer( small shops,
departmental stores
and hotels)
Consumer
Dhanhar Masala Pvt. Ltd. Use three level of distribution channel in general cases
where they sale from their outlet to the super stockiest which in turn sales products to the
agents and agent sale it to the big and small wholesalers or retailers and it goes further to
retailer and finally to the customers.
B. Zero level of distribution channel (full distribution channel)
Dhanhar masala's outlay at Bhagal
customer purchasing directly
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Dhanhar Masala Pvt. Ltd. use to zero level channels in rare case here if known
customer is asking for a small purchase then only they sale directly to the direct
customer.
C. One level of distribution channel (full distribution channel)
retailer (small
shops, departmental
stores or some
hotels)
Dhanhar masala's
outlay at Bhagal
customer
purchasing directly
Dhanhar Masala Pvt. Ltd. use to one level channels in case where the retailer or small
shopkeeper or many department store in near around area or many hotels purchases
Masala from Bhagal outlay and in turn retailers sale it to regular customers.
D. Two level of distribution channel (full distribution channel)
In two level distribution channel company sales products to the super stockiest or
wholesaler and they sale it to retailers like super store or departmental store and they sale
it directly to the final customer.
This distribution channel can be shown as following.
Manufacturer
(Dhanhar)
super stockiest
(CNF)
Retailer (small shops,
departmental stores or
some hotels)
Final customer
wholesaler
Retailer (small shops,
departmental stores
or some hotels)
Final customer
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7. Sales procedure & 8. study of how customers are processed
Sales procedure in Dhanhar Exim Pvt. Ltd. is a very systematic and easily processed. As
soon as an inquiry by customer is received, whether through verbal, telephonic or written,
or from the website and then the quotation with price and type of product is sent to the
respected customer. If the customer will be satisfied, he will send reply for terms and
condition and that time marketing manager or assistant of the company will go for
finalization of the terms and conditions at the customer place and if customer satisfied
will give order for product. Order given by the customer to the marketing manager will
be issued to production planning department. After the delivery schedules, production
planning done. It consists of Bill of Material and material requirement planning.
After preparing production planning, execution of production plan is done and when raw
material is converted into finished good final quality checking is done and accepted
products are dispatched to respective customers.
This process can be explained as following:
inquiery from the customer (through verblely, written
letters or telephonic or inquiry from website
"Dhanharmasalas.com
quatation including price and type of the product is sent to
the customer
order from the customer ( if customer is satisfied)
Material requirnment planning and bill of material
Production
dispatch of order and sent to the customer
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9. Documents related with sales
At Dhanhar Exim Pvt Ltd , Sales-related business transactions are recorded in the system as
sales documents. There are as following
Sales queries: inquiries and quotations
Sales orders
Outline agreements, such as contracts and scheduling agreements
Customer problems and complaints, such as free of charge deliveries and credit
memo requests
Cash memo
10.(a.) Composition of product, price, place and promotion for Dhanhar :
Market mix
At Dhanhar
Product
Product ranging from spices( 41 item) for all people (
vegetarian , non vegetarian, spicy food eaters or people love to
have some spice in their drinks like tea Masala or buttermilk
Masala etc) and they make water chestnut flour and Basmati
rice and chick peas in all available packaging.
Price
So at Dhanhar they do have a good product mix.
Here Dhanhar set their price according to the competitors price
so they follow the going rate pricing method but they use mark
up pricing also for deciding the price for their product.
So here Dhanhar generally go with market price of other
companies and they have the mark up for 50 to 70 % and hence
they can satisfy intermediaries and customers both.
Place
Here Dhanhar have good Distribution channel ranging from
Zero, One, two and full levels of Distribution channel .
Here the company have a benefit that company can reach to
every area of south Gujarat and middle Gujarat and hence
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company can get the benefit of a good and small and hence
speedy distribution channel.
Promotion
Company have promotion policy of giving a hand bag on the
purchase of Rs.1000 and more and a travelling bag on the
purchase of more than of Rs 2000.
Company do have an appropriate advertisement policy .
Here they will decide the advertisement budget according to
overall budget prepared by finance department.
Here their budget is generally between 5, 00,000 to 8, 00,000
rupees.
They mainly give advertisement in Guajarati newspapers and on
FM and they use Hoardings for advertisement purposes.
So we can say that company has an appropriate policy regarding
promotion and advertisement.
10 (b.) Comparison of 4p’s of Dhanhar with competitors
A. Product :
While comparing Dhanhar products with competitors , Dhanhar is quite ahead as
Ramdev has 43 Masala varieties while Other competitors like Everest has 43
Masala and S.K and Gajanand and nilon etc company have products ranging from
30 to 40 products while Dhanhar has 47 Masala with lots of varieties targeting
both Non vegetarian and vegetarian food eaters.
B. Price:
On comparing pricing policy with competitors Dhanhar has always kept its price
lower than competitors. For example 50 grm hing is available at Dhanhar in 18 rs
and in 24 rs while other hing like Ramdev hing and others are available in 28 to
33 rs.
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C. Place:
Dhanhar has all zero level, one level, two level and three level of channels. And
on other side comparing to Ramdev, Everest and S.k Masala Dhanhar have poor
distribution channel because Ramdev, everest, Catch Masala etc have distribution
channel all over in India and generally these Masala are found in every general
store or departmental store. So Dhanhar have all level of distribution channel but
due to less number of distributors,other companies found to be superior than
Dhanhar.
D. Promotion:
As far as promotion or advertisement part is concerned Dhanhar do have an
appropriate policy but Ramdev and everest have advertisements all over India and
they do have good sales promotion schemes for intermediaries and customers and
at local level S.K Masala and gajanand Masala also have good advertisements in
newspapers and many hordings are found at many places but Dhanhar‟s target
market is south Gujarat and they are able to attract the customers.
11. Study of generic level of competition
In the Masala industry in Gujarat region, mainly in south Gujarat, Dhanhar has to face
a tough competition mainly with Ramdev Masala and Everest Masala and S.K
Masala and Gajanand Masala also are good marketer in Masala industry but Dhanhar
is able to survive in the competition due to following two reasons
1. providing natural products with very less usage of chemicals
2. Giving more commission to the intermediaries (minimum 20%)
So in this way Dhanhar is able to survive in tough Masala competition
While in Water chestnut flour market, Dhanhar has to face a little competition with
small Atta maker flour mills who make Singoda flour on small scale basis.
Though in water chestnut flour competition Dhanhar is market leader due to
following reasons
1. made from fresh singoda and no added chemicals
2. more commission to retailers
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3. 170 Rs per kilogram, and available in small packet of 100 gram also and hence
cheaper also.
So it can be said that Dhanhar with good composition of marketing and products
running their organization at a good pace.
12. Forecasting and sales plan preparation
Dhanhar systematically do forecasting and prepare sales plan on base of forecasting.
The sales forecast establishes the level of activity used in all the other forecasts and
budgets for the business. If your sales forecast varies wildly from your actual results,
your cash flow and profitability forecasts will similarly be inaccurate. Regularly updating
forecasts ensures current market intelligence, buying signals from clients and the efforts
behind the marketing strategy can be taken into account for the next forecast.
In Dhanhar Exim Pvt Ltd company use following sources to forecast to sale for future.
1. Sales Forecasting through Past sales method
2. Sales Forecasting through performance of Distributor
3. Sales Forecasting through Review the market
Sales Forecasting through Past sales method
In this method Dhanhar Exim pvt Ltd use previous year sales for sale forecasting.
Generally company takes last year sales as a base and adds some percentage to last year
sales.
They here generally use trend percentage method for estimating future sales.
This can be seen as following…….
Product
Sales
in Sales
in Trend percentage
Sales estimation
2011
2012
Garam Masala
300000
320000
106.6666667
341333.333
Tea Masala
150000
107000
71.33333333
76326.6667
Red chili powder
400000
470000
117.5
552250
water chestnut powder
700000
820000
117.1428571
960571.429
for 2013
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Sales Forecasting through Distributor
Company also use each Distributor‟s sales of last a year as a base for sales forecasting
and give them target with adding some percentage in to sales, here they consider the
average sales of past three year and add some percentage to average sales, and they
accumulated sales of all Distributor. In that company accumulate sale of all distributor
and give them target via adding some percentage in to accumulated sale or average sale
of all distributor. This is only possible when company can forecast demand of each
distributor.
Here if average performance is higher than last year sales then they give only 2% growth
and if average performance is less than last year sales then they give 5% growth.
Distributor’s Sales in Sales
name
2010
in Sales in Average
2011
2012
Percentage Sales
performance growth to estimation
average
for 2013
sales
Distributor 1
8,92,000 10,00,875 11,00,000 9,97,625
5%
10,47,506
Distributor 2
4,00,000 2,30,000
1,70,000
2,66,667
2%
2,72,000
Distributor 3
5,00,000 4,00,000
4,70,000
4,66,667
5%
4,79,500
Distributor 4
5,60,000 7,00,000
8,20,000
6,93,333
5%
7,28,000
Sales Forecasting through Review the market
Through Review the market via industry experience and intelligence, company to know
what is happening with the competition, and company can also look at their financial
strength through Companies House filings. Are they growing or contracting? What are
they doing with their pricing? Is this a sign of an aggressive sales strategy? What your
competitors do will inevitably affect your sales. So that answering to these questions, it
helps to sales forecasting.
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13. Pricing policy
It is easy to decide the % of the profit, which are added to cost?
It is easy to set price according to the competition. So now we will see how Dhanhar
Exim Pvt. Ltd. set their product price.
Price which the customers are required to pay for the goods. It should meet the
expectation of customers and make customers satisfied which will ultimately increase
the royalty towards the company.
Pricing is done by considering various factors such as pre-received value by
customers, competitor‟s price, government policy, firm‟s objectives, etc.
Now we will see what pricing policy by Dhanhar Exim Pvt. Ltd its product
considering various costs, which they have, incurred such as fixed cost, variable cost.
Price = (fixed + variable+ overhead ) costs + % of profit
They will always keep a keen eye on the price of the raw material as almost 50% to
60% cost of product cost is covered by raw material cost.
They will also consider the price in the market. But here one should know that
Dhanhar Exim Pvt. Ltd never compromised on the quality of product.
Here company have adopted going rate pricing where the Dhanhar Exim Pvt. Ltd
charge the price on the bases on prices of Everest, Ramdev, M.D.H, and Gajanand
Masala.
Here company follows going rate pricing but they also have some mark up on their
cost for profit.
Here company does not set price by its competitors, here they set the mark up on the
cost and then they decide the price.
For example if a Dhanhar water chestnut powder of 1kg packet has following cost
structure then,
Variable cost per unit= 45 rs,
Fixed cost 42, 00,000 rs for all products
Expected unit sales is 12, 00,000 units of all products aggregate sales
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40. 40
Then unit cost= variable cost + (fixed cost/unit sales)
=45 + (120, 00,000/16, 00,000)
=61+ 7.5
=68.5
So here unit cost of water chestnut powder is 47.5 rs per 1kg
And if company have mark up of 60% then
Mark up price= unit cost/ (1-desired return on sales)
= 68.5/ 0.40
=171 rs
So according to mark up price, water chestnut powder can sale 1 kg packet at 170 rs.
Pricelist of Dhanhar Exim Pvt Ltd
Product
RAJWADI
GARAM
MASALA
weight
25 gm
50 gm
100 gm
200 gm
500 gm
AGMARK
HING
50 gm
17.50
100 gm
200 gm
500 gm
34.00
67.00
165.00
weight
15.g
50.g
100.g
200.g jar
500.g ar
Price
5.00
22.00
40.00
75.00
155.00
50 gm
100 gm
200gm
500 gm
1kg
8
15
29
70
140
5.00 TEA
8.00 MASALA
15.00
29.00
70.00
15.g
50.g
100.gm
500 gm
500.g Jar
5
25
48
205
175.00
50.g
100.g
200.g
500.g
1.kg
SUPER
GARAM
MASALA
12.00 PUN.
18.00 GREVI
34.00 MASALA
83.00
155.00
15.g
50.g
100.g
200.g
500.g
5.00
18.00
35.00
68.00
130.00
50.g
17.00 CHHOLE
15.g
5.00
15 gm
50 gm
100 gm
200 gm
500 gm
NO.300
HING
SUPER HING(DABBI)
price
5.00
12.00
23.00
46.00
110.00
Product
PAVBHAJI
MASALA
Special Garam Masala
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100.g
DELUX HING
(DABBI)
50.g
100.g
33.00 CHANA
MASALA
35.00
65.00
KASHMIRI CHILLI
POWDER
100.g
200.g
500.g
27.00 IDLE
50.00 SABHAR
120.00 MASALA
CHILLI
POWDER
50.g
100.g
200.g
500.g
1.kg
5.kg
5.kg
7.50
14.00
27.00 BIRIYANI
65.00 MASALA
125.00
525.00
600.00 RAJGARA LOT
50.g
100.g
200.g
500.g
1.kg
5.kg
7.50
14.00
27.00
65.00 KICKEN
125.00 KING
600.00 MASALA
50.g
100.g
200.g
500.g
1.kg
7.00
12.50
24.00 CHAT
57.00 MASALA
105.00
50.g
100.g
200.g
500.g
100.g
1.kg
8.00
15.00
28.00 PANIPURI
65.00 MASALA
20.00
190.00
FINE
CLASSIC
Turmeric powder
Classic
CORIANDER
POWDER
CORINDER
CUMIN
POWDER
SHINGODA LOT
ROCK SALT
MILK MASALA
TEA MASALA
40.g
100.g
20.g
50.g
100.g
50.g
2.00
5.00 JIRU POWDER
55.00 LILO MARKO HING
135.00
275.00 KALO MARKO
HING
18.00
BRCM COLLEGE OF BUSINESS ADMINISTRATION, SURAT
50.g
100.g
200.g
500.g
18.00
35.00
68.00
130.00
15.g
50.g
100.g
200.g
500.g
5.00
18.00
35.00
68.00
130.00
15.g
50.g
100.g
5.00
17.00
33.00
100.g
200.g
500.g
16.00
32.00
80.00
15.g
50.g
100.g
200.g
500.g
5.00
17.00
33.00
65.00
135.00
15.g
50.g
100.g
200.g
500.g
5.00
13.00
24.00
45.00
110.00
15.g
50.g
100.g
200.g
500.g
5.00
13.00
24.00
45.00
110.00
1.kg
210.00
1.kg
370.00
1.kg
250.00
42. 42
LAL MARKO HING
190.00
50.g
500.g
7.00
65.00
50.g
500.g
8.00
75.00
50.g
7.00
SP.G.MASALA
1.kg
175.00
SPECIAL GINGER
POWDER
1.kg
1.kg
CHEVDA MASALA
SURTI MASALA
1 kg
210.00
200.g
500.g
29.00
70.00
200.g
500.g
34.00
80.00
105.00
LIMBU-SODA
DELUX MASALA
500.g
140.00
SP.TEA MASALA
1.kg
214.00 CHHAS MASALA
JINGER POWDER
1.kg
180.00
DALSHAKMASALA
250 g
70.00
MARI POWDER
500.g
204.00
FISH
MASALA
50.g
100.g
200.gjar
500.gjar
100.g
200.g
500.g
AACHAR
MASALA
20.00
38.00 GUNDAKERI
74.00 MASALA
150.00 GOL-KERI
15.00 MASALA
29.00
70.00
14. Promotional and advertisement policies at Dhanhar Masala
Meaning of promotion:
Promotion means a set of efforts made by the company for stimulating the demand for
its product or products without making any alteration in product mix, price and channels
of distribution.
What is done for promotion?
Dhanhar Exim generally follows following promotional activity.
o Customer purchasing Masala item above Rs 1000 to 1999, Dhanhar Masala gives
one Shopping Beg having printed their name Dhanhar and address.
o Customer purchasing Masala item above Rs 2000 up Dhanhar Masala gives one
Traveling Beg, having printed their name Dhanhar and address.
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o And special bags are given to regular customers at the time of Diwali.
o Sometimes they carry the scheme on certain products like 20% extra on the
packaging of 1 kg.
Advertising policies
Here company does have an advertisement in newspapers but on the small scales.
Here they will first decide the communication and advertisement budget for the whole
year and they will plan during which season they are going to give promote their product.
Here they will decide the advertisement budget according to overall budget prepared by
finance department.
Here their budget is generally between 5, 00,000 to 8, 00,000 rupees.
They mainly give advertisement in Guajarati newspapers and on FM and they use
Hoardings for advertisement purposes.
Advertisement photo in Gujarat Samachar newspaper is as following.
Here in advertisement they are mainly focusing on seasonal products for example in June
and July they have advertisement regarding pickle Masala because it is the season of
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mango while in the month of august they have advertisement regarding Water chestnut
flour as it is the month of many festivals.
Here they use various hoardings also which are given to distributors for the publicity
purposes which can be shown as following.
Here for advertisement purposes they give advertisement in a magazine called yellow
page which is a business magazine having details of suppliers, manufacturer and
distributors.
Dhanhar is giving advertisement which can be seen as following.
Here dhanhar‟s Masala administrative and store department phone numbers can be seen.
Here this advertisement is given in Surat addition of Yellow pages magazine.
15. Taxes applicable on sales activity
In India, there are two types of taxes on sale of goods – one levied by the Central
Government and the other levied by the State Governments.
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45. 45
What Dhanhar Exim has to pay is discussed as following.
1. Taxes applicable on sales activity within the Gujarat state (Intra-state Sale)
Sale or purchase of goods within a particular state is called Intra-state Sale. According to
Gujarat Sales Tax Act (GST), 1969. Prescribed in the act, Dhanhar Exim Pvt Ltd charge
3% sales tax on their customer within Gujarat. According to Gujarat value added tax
(GVAT), 2003 Dhanhar Exim Pvt Ltd charge extra 1% Vat Tax under section 7(1) is a
charging section which is levied on sales of goods, listed in schedule II and schedule III
after charging sales tax.
2. Tax on sales activity in inter-state Sale
A sale or purchase of goods between two states is called inter-state sale, is governed by
the Central Sales Tax Act, 1956 (CST Act). According to Central Sales Tax Act (CST),
1956, prescribed in the act Dhanhar Exim Pvt Ltd charge 5% sales tax on their interstate
customer on sale of goods. According to State VAT legislation Dhanhar Exim Pvt Ltd
charge extra 2% Vat Tax after charging sales tax.
So taxes applicable on sales activity can be viewed as following
Sales
Act
Tax applicable
Sales within
Gujarat Sales Tax Act (GST)
3% + 1% according Vat Tax under
Gujarat
& Gujarat value added tax
section 7(1) = total 4 % tax
(GVAT)
Sales outside
Central Sales Tax Act (CST), 5% tax according CST + 2% additional
Gujarat
1956
Tax = total 7%S
16. study of control system & reporting system for employees working in
marketing department
1. Control regarding Dispatch of goods
The controlling system is very necessary for sales employees. At Dhanhar controlling
system is very clear. No one can take the lot outside the factory before the signature of
dispatching manager. Dispatching manager issues the bill for the goods which is send out
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of the factory. This bill would be collected by the security manager, and then they
allowed any one to let the goods outside the factory. This system is also applicable for the
purchased goods. No one can take the goods inside the factory, first security manager
check the goods and then allowed to enter into the factory.
2. Control regarding target achievement for distributors
The controlling system regarding sales distributor is in terms of the sales target they have
to achieve given by the marketing manager.
Company also use each Distributor‟s sales of last a year as a base for sales forecasting
and give them target with adding some percentage in to sales, here they consider the
average sales of past three year and add some percentage to average sales. Here if
average performance is higher than last year sales then they give only 2% growth and if
average performance is less than last year sales then they give 5% growth.
If a distributor is able to achieve his goal, he will be rewarded with extra % of sales
commission mainly 2 %TO 3 % of his total sales.
If a distributor is failed to attain his goal for continuously for 3 times, he will be removed
from their distribution channel.
17. Document Report generated in marketing department
The different reports generated in marketing department are as follows:
1. Customer feedback report
2. Customer complain report
3. Sales report
4. Profitability chart for various distributors
5. Conversion of samples into orders
6. Sample making time
7. Number of samples to be made to confirm an order
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A. Structure of production department in Dhanhar Masala
Mr.Jignesh
(head 1)
Production
department
production
manager
assistant
workers
Mr.Nilesh
(head 2)
o Here at Dhanhar production department is being managed by two heads Mr. Jignesh
and Mr. Nilesh respectively.
o Production manager works under two heads.
o assistant is at 3rd level in the hierarchy
o Workers are working under the head of a assistant.
Meaning of Production:
“Production is the process of converting the raw material and for the other input the
product for further production of the finished goods or services so that utility of input is
created or enhanced and the need of customer are satisfied.”
Example: - Consumer goods, Industrial goods, Services of transport, Medical treatment,
Education, Insurance, Banking etc.
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Definition of Management:
“Management means creating and maintaining an environment in which individual
working together in group willingly contribute there best to achieve the predetermined
goal and objective timely though the effective utilization of sources such as money,
material, technology etc.”
Production Management:
“Production Management means creating and maintaining environment in which
individual working together in group willingly contribute their best to produce to satisfy
the goods and services by optimum utilization of raw material and other input so as to
timely satisfy the need of customers”
B. How production plan is prepared from sales plan
Sales plan prepared by Marketing Department and Sales order
sequencing the activity
( important order or order having earlier delivery date are given prirority)
deciding production planning quantity through checking quantity of
current stock of finished goods , work in progress and expacted closing
stock
production plan quantity
1. First of all, Marketing Manager will forecast demand of customer and prepare sales
plan according to their requirement or also estimate sales for future period on the
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basis of Market situation. Then marketing department gets sales order from customer.
At Dhanhar Exim Pvt Ltd, one customer can order via online and direct
communication through telephone or letter or personal talk.
2. Here in the second step marketing manager will send the demand data about each
product of Dhanhar to the production department where they will sequence the
activity of production where important products or products whose delivery date is
earlier is given the priority by production department and upcoming season‟s product
quantities are also managed, for eg in august month many Hindu festivals comes and
many people have fast on such festivals and in fast people eat products made from
water chestnut flour , so production department have to make water chestnut flour in
the month of July so that it is available to marketing department in august.
3. In the third step they will do production planning so that they can have exact quantity.
Here they will first check the current stock of finished product and if production is in
progress then that quantity is also considered and they will subtract both current stock
and WIP quantity from total marketing forecast and they will add expected closing
stock at the end of planning period. Here Dhanhar considers the stock , they have to
send to their selling outlet at Bhagal for sale in current period .
So, production planning quantity = marketing sales forecast- current stockcurrent Work in progress (if any) + requirement of Finished product for sales in
current period + expected closing stock
Current period = July
Planning period = August
Production plan quantity for water chestnut flour for the month of August =
Market forecast (2700 kg) - Current stock (715 kg) – current WIP (00) + current
expected sales (280 kg) + closing stock Expected (600 kg)
= 2865 kg
So, Dhanhar have to make 2865 kg of Water chestnut flour in the month of August.
4. In such way production plan quantity for all products at Dhanhar.
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C. How the production plan is converted in Material Requirement Plan &
ultimately in purchase Plan
production plan quantity
Bill of Material for various products showing quantities of raw material
Determining net quantity for Raw material through checking current stock
of RM , pending order quantity, closing stock and safety stock of RM and
current periods requirnment
placing orders to the supplirs
1) First the production department gets an order from the buyers. After getting the
confirm order production manager prepares production plan. They send this
production plan to raw material and stock manager of the factory.
2) In the second step they will prepare Bill of Material for each product, BOM is the
statement showing quantity of raw material and other inputs required to produce that
product.
3) Here in the 3rd step production department have details of all raw material required to
produce one product and from total quantity required, they will subtract current stock
of raw material and quantity required to produce quantity for orders which are
pending and they will add quantity they want as closing stock and as safety stock at
the end of planning period.
Net material requirement quantity = quantity needed for production - current
stock of raw material – quantity needed to produce pending orders(if any) +
requirement in current period + expected closing stock and safety stock
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Material requirement planning for Water chestnut Flour (from above
production plan, we can see that production forecast is for water chest flour is
2865 kg)
Current period = July
Planning period = August
Raw material singoda required for making water chestnut for the month of
August = production plan quantity (2865 kg) - Current stock of singoda (630 kg)
– quantity needed for pending orders (00) + closing stock Expected and for
safety stock (600 kg)
= 2835 kg
So here Dhanhar Exim Pvt Ltd has to order for 2835 kg of Singoda for making 2865
kg of water chestnut.
4) The merchandiser place the order to the supplier of raw material as per the
requirement. By this way they prepare purchase plan.
They do not believe in maintaining stock. So they have to prepare purchase plan every
time. Normally they purchased raw material from Surat and Mumbai.
D. Plant location of Dhanhar Exim Pvt ltd
Plant location is mainly selection on these areas where the business should well establish
for maximum utilize of economy and effectiveness. It is an important decision in long
term.
Location of plant is most important factor in a private sector. There are many factors are
affected e.g. if the place was outside the city then they are free from paying octroi for
their product, various taxes, labour transmission facilities, living home to the labour or
employee like houses, cottages etc., for the raw material storage facility to the certain
extent to run production smoothly. When plant or site is located in near or in the city they
have no expense to rent for the employee or labour houses, available good infrastructure
in compare to the far from the city area, less transportation cost, easy distribution of
goods in less time. Dhanhar Masala Pvt. Ltd. plant is located at no far from the city
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and not near to the city. It is located in industrial zone of fulpada in this area they get
benefits from the government and electricity, water, roads, communication channels.
Production house
Plant location of
Dhanhar
administrative
office
Survey no.
167,Ashwini kumar
road, Nr, shamshan
bhumi,Fulpada,
Surat,(Gujarat)
India.
Dhanhar
house,Bhajiwadi
pole,bhagal char
rasta,Surat –
395003(Gujarat)
India.
Dhanhar Masala Pvt. Ltd. Chooses this area because there are available enough raw
material with proper quality & quantity. Easy distribution of their product & profitable to
the industry. They not thinking for the changing the site. They want to buy or take on the
lease new site near the old plant.
The population is increasing day by day and residential area will come near to the
industrial area so that Dhanhar Masala Pvt. Ltd.
more concentrate on environment not
harmful to the their citizen. The company will think to establish new plant far from to the
residential area.
Factors affected the selection of Dhanhar Exim pvt ltd locations and Benefits
(evaluation) of plant location
Various factors which affected plant site selection and benefits from that location
are as following.
1. Proximity ( nearer) to market
2. Proximity ( nearer) to raw material sources
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3. Type of business
4. Availability of manpower
5. Availability of infrastructure and other factors of production
6. Law & order
7. Political system and economical system of the country
8. Ideology of ruling political party and opposite parties
9. Cost of land and real estate
10. Other support system
11. Climate factors
12. Mindset of local society
13. Topography of soil
14. Nature of business
15. Tax incentives and other
16. Personal factors
They are as following……..
1. Proximity (nearer) to market
Dhanhar Exim Pvt. Ltd. is located in the prime area of surat. The benefit of this
location is that they can serve to whole south Gujarat market where they have more
number of customers compared to other parts means they can serve to places like
Navsari, Valsad or vapi which are in southern part and to Bharuch, Ankleshwer and
Narmada which in Northen part of Surat and hence surat is a central location and
hence company can reach to the customers in easy way.
2. Proximity (nearer) to raw material sources
Adequate raw material is available for Dhanhar Masala Pvt. Ltd. The main
reason for Choosing this area because there are available enough raw material with
proper quality & quantity
Regular supply is possible as Surat is very near to N.H. 8. So transportation
facilities are available all the time.
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3. Other support system
There are various banks available around to the company like HDFC bank and
sutex bank and Bank of Baroda etc.
As in some industry continuous supply of power is important factor. And here
Torent Electricity Board provides continuous supply of power.
4. Availability of manpower
Important input of Unskilled or blue color workers is available at economical cost.
Regular & cheap supply employee is available in the area of Ashwini kumar.
Manpower availability with required skills.
5. Availability of infrastructure and other factors of production
Dhanhar Exim Pvt ltd has its own state of art infrastructure at manufacturing plant
in Gujarat, India. Aimed with capable of producing more Masala per month.
Company does have separate buildings for administrative work and production
work at Bhagal and at Ashwinikumar respectively.
6. Topography of soil
The soil of Ashwinikumar area is harder so that manufacturing process can be
carried on without any further problems. And here company doesn‟t have very
heavy manufacturing so production can be carried easily.
7. Type of business & Nature of business
The Dhanhar Exim Pvt ltd is running the business concerning with manufacturing
of Masala and other edible products which can be manufactured in any area and
also in prime area of city or village and hence Dhanhar Exim Pvt ltd have no
requirement to be away from Surat city and hence Ashwinikumar is a proper place
for them.
8. Political system and economical system of the country
Here as this company is only concerned with Manufacturing of Masala no political
system affects the working and management of the company.
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9. Ideology of ruling political party and opposite parties
Here the ruling party which is B.J.P have always supported industrialization and
always promoted business against agriculture which always been an issue to the
opposite party. But Ideology of ruling party is always positive that‟s why they are
still in Masala industry since 1965.
10. Cost of land and real estate
The Dhanhar Exim Pvt ltd was established in 1965 and at that time surat was a
developing area Surat district and they got the Ashwinikumar area‟s land at some
economical cost but at that time Bhagal was the main area of Surat city and hence
they have to pay slightly more at that time.
11. Climate factors
As Dhanhar Exim Pvt ltd is of manufacturing company of Masala and hence do not
require having a specific climate. For e.g. a pharmaceutical company requires clean
air in their premises but for Masala making nothing more is required.
12. Mindset of local society
Here the local ladies are getting the job and as it is only a Masala making firm local
people have no point for opposing the company manufacturing.
13. Law and order
As company‟s both working places are in prime area of surat city they don‟t have to
pay after security of working place compared to rural area and hence Dhanhar got
benefited.
E. Plant layout of entire factory
Here different plant layout for each deprtment is not there because Dhanhar has its
production unit at Ashwinikumar and administrative office is located at Bhagal
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where marketing and finance department works. While there storage department is
near Bhagal Vegetable market.
Thus internal plant layout for each department is not possible.
This is Dhanhar‟s administrative area where marketing and finance department is
located.
While their storage department named Dhanhar Masala Bhandar is located near
Bhagal Vegetable Market. Which can be seen in following map.
Dhanhar Exim Pvt ltd,
Bhagal, suart.
F. Internal plant layout of main production department
Plant of Production Department at Ground Floor area
Here According to production process of cleaning, grinding, Mixing, packing and
labeling, various departments are made.
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While Storage department for finished products are made on the 1st flour.
G. Types and classes of Material Handling Equipment
1. Trolley:
Trolley is being used mostly in the material department for the movement of small
article from one rack to another and also used in the movements‟ equipment and
man oriented equipment. Trolley can be as following.
.
2. Hand carts: hand cart has the same utility as Trolley but it is used outside of the
plant for movement of shipping packages of finished products.
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3. Convey belts:
Dhanhar uses conveyor to transport materials on conveying system. Conveyor
utilizes a moving belt that slides along a flat steel bed with pulleys at both ends.
Here Dhanhar mainly uses it for movement of raw materials.
4. Elevators:
Elevators are used for the vertical movement at Dhanhar between two floors and for
moving finished products from production department to underground flour which
is the storage area. Elevators uses electricity for vertical upward movement while
use gravity while downward movement. Lifts transport goods vertically to multiple
heights (from the ground to a mezzanine for example) or horizontally for increased
order picking throughput.
5. Crates and boxes:
Dhanhar provides the baskets, bins, boxes, pallets and other containers that are
durable enough to handle the day-to-day rigors of your operations.
6. Pipelines
Pipeline is used for liquid form inventory movement and of water and wastage
materials.
7. wooden pallets:
Wooden pallets are the most common type of pallet, which are also made of metal,
plastic and paper. Flat transport support structures, wooden pallets give forklifts the
ability to easily lift and place products and materials on pallet rack.
Wooden pallet cab be seen as below
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Classification of material Handling Equipments
A. Classification on the Basis of Form of the Material
1. For solid Material
Hand Carts
Conveyer Belts
Elevators
Crates and Boxes
2. For Liquid material
Pipes
Canals(For waste material)
B. Classification as per path of movement
Elevators
Pipeline
Conveyor belt
Hand cart
C. Classification as per Direction of movements
o Handling is required between two departments, between two locations within a
department and also at one work-station or machine
Elevator and pipeline for vertical Movements
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Handcart and conveyor belt for horizontal movements
D. Classification as per starting point and destination point
Crates and boxes for intra department Material handling
Handcart and trolley for Inter department Material Handling
E. Classification as per sources of power
1. Manually powered: Handcart, trolley, crates and boxes
2. Online electronic Power Source: Elevators
H. Inventory control system
Here at Dhanhar Masala, they have ABC inventory control system in which they
record the transactions of inventory in computer and arrange them in descending
order in the form of their monetary value.
Here benefit from this system is” It is able to record multiple units of measure, as
they purchase in “bags, jars, kg, etc.”
In this system name of RM its batch and material code and Barcode is inserted.
The installation of Stockroom has improved their inventory accuracy, reduced
rush orders, reduced over buying and in general streamlined the purchasing and
inventory process for this small business.
Format of ABC system at Dhanhar
Raw material
name
RM code
Money value cumulative
% of total
Class
of RM
consumption value
(A, B, C)
I. inventory valuation method
o Materials are issued to the different jobs, works, and orders from the „store‟. The cost of
finished product largely depends upon the price changed for raw-material issued to the
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jobs. Various methods are used for inventory valuation, which will solute with industry
condition. The methods of inventory valuation are as follows:
1. FIFO method (first in first out)
2. LIFO method (last in first out)
3. HIFO method (highest in first out)
4. Average cost method
5. Market price method
6. Standard cost method
7. Base stock method
o Dhanhar Exim Pvt Ltd is using FIFO (first in First out Method) for valuation of
inventories, in this method
Guidelines for inventory valuation method
Raw material
o Stock different ingredients are values as per the price of purchasing. So if dry water
chestnuts are being purchased at 6 rupee per kilogram and suppose 25 paisa is inspection
cost then 6.25 is the value of water chestnut.
Work in progress
o Top management has decided that Work in progress is valued as per the half cost of
manufacturing multiply by quantity of WIP.
Finished goods
o Final Masala product is being valued as per manufacturing cost multiply by total stock of
polished raw material.
Tools and equipments
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o There is stock register of how many tools and equipments are used. According to this
register tools or equipments used multiplied by cost or price of that tools and equipment.
J. Classification of inventories according to ABC & VED analysis
ABC analysis
o Abc analysis is analysis according to the value of items. In Dhanhar, the inventory
consists of hundreds of items and many employees are controlling them. In order to
affect economy in controlling such large inventory Dhanhar uses a system known as
ABC (Always Better Control) analysis.
o It has been found from the experience that all items included in inventory are not of
equal importance. A few items in the inventory represent a large proportion of total
value of inventory. Hence, more attention must be devoted to the control of such
items. All the items are divided into three categories.
1. A – Category
It includes those items which are very important and of high value but forms only a small
proportion of total quantity of inventory.
At Dhanhar, there are 40 items which are comes in category A and they represents as much as
54% of value of inventories. Strict control over receipt, storage and issue should be exercised
over these items such as Black Pepper, whole cardamom, red chili, turmeric, dry singoda,
Cotton Seeds Oil, Nutmeg, Coriander, Ginger, Plastic Bag( for packing), Rajgara etc.
2. B – Category
Items included in category B are not as important as those in category A interms of money,
but are important enough for its proper records to be maintained. They constitute 65 items of
total number of items, but represent 28% of total value.
Here such items are Ajwain, Mint Leaves, Black Salt, Rock Salt , Cinnamon Leaves etc
3. C – Category
The remaining items must be placed in category C. they are not so important form the view
point of maintaining control over the receipt and consumption such items constitute 50% of
the total number of items but they represent 18% of total value.
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ABC analysis of Dhanhar
Category
No. of items(in % of total Value of items ( in % of total
number of items)
value of inventory)
A
40 items (21.05)
54
B
55 items(28.95)
28
C
95 items (50%)
18
This ABC analysis can be shown as following
100
80
60
40
20
0
0
21.05
50
100
VED analysis
The possible consequences of material stock outs when demand arises from the basis
of VED analysis. The cost of shortage depends upon the seriousness of the situation.
Items are grouped as V(Vital), E(Essential) and D(Desirable).
This classification of inventory is based on importance and application of different
items in production process. According to this classification there are three categories
of item VED.
Vital items are those items without which production will instantly stock all main raw
materials are obviously vital items. Similarly, there can be some another low value
items which are absolutely necessary for production process. As explained above,
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spar parts of machines like power generator or Quality control liquid becomes vital
items. For example for making water chestnut flour dry singoda is vital product.
Essential items are those items without which efficiency of production process will
reduce. Absence of these items may not cause total stoppage of production but rate of
production may go down or wastage of material may increase.
For Example at Dhanhar elevator is most important because it is helpful for multi
level movement of material and if it is not working then it will affect the efficiency.
Desirable items are those items, without which it will be inconvenient to do
production operation. Without these items, production is not going to stop or slow
down.
Example: weight measuring instruments, staplers small tool of safety devises are such
desirable items.
In Dhanhar, there is no system like VED analysis but by doing VED analysis those who are
responsible for availability of various raw material and items may know which items are
important for production process.
K. Study of material codification system
Material codification system is a system in which each parts is given different codes
for identifying particular product by giving alphanumeric codes. Alphanumeric codes,
which are given to different parts, are unique so that computer will able to keep
accurate information in it.
Now we are going to study alphanumeric codes.
1. RM045: Here RM means material related items. For example red chillis, dry ginger
may be given the code 0454 and 0567.
2. FG012: Here FG means finished goods which made in factory. For example Tea
Masala may be given a code FG180
3. JB022: Here JB means job repairing items. Items which are used for repairing and
maintenance. For example nuts, bolts, various machines spare parts etc.
4. C12: Here C means consumables items. Greece, oil etc.
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L. Records keep in store:
1. Material Receipt Register
2. Material Issue Register
3. Stock Register
4. Store Register of Assort Department
5. Wastage goods Register
6. Reject goods Register
7. Finished goods Register
M. (a) Material receipt procedure
At Dhanhar, there is systematic process for material receipt as follows.
1) The first step is purchase order given by company to suppliers.
2)
When material comes it is not directly sent to store department but it is given for quality
checking. In Dhanhar, there is one laboratory to check the quality of materials. They are
checking the quality of goods and compare with quality of sample which is given by suppliers.
3) If there is any discrepancy, it should be immediately reported to the purchase department and
that goods are sent to rejected goods department.
4) Rejected goods department take necessary action for the return of goods to suppliers.
5) If the goods are of quality, receiving section will prepare a “goods receive note”. Four copies
of the note are prepared and three copies are sent to the store keeper along with the goods
received and they attach green color “accept card” with materials.
6) Received material is store in various containers by store department and issue when they get
order.
(b)Material issue procedure
As we done previously, we will see material procedure step wise.
1. Suppose the sales department gets the order of 100kg Pavbhaji Masala. Then
purchase department will see current availability of stock and store department and by
watching condition they are taking decisions.
2. After the store department is given required stock, production department approach
the store department for getting required material for producing 100kg Pavbhaji
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Masala, so that the store department will send accurate and adequate material to
production department, which will reduce the wastage cost.
3. Now store department will approach to material requirement department which will
give them the bill of material report of 100kg Pavbhaji Masala.
One thing should be noticed that consumable items, workers have to approach the
store department with requirement slip for getting the required material.
N. Documents related to material issue and receipt
1) Material receipt register
2) Material issue register
3) Stock register
Material Receipt Register
Date
Name of Dealer
Challan no.
Item
Quantity
Remark
Material issue register
Date
Name of Dept
Material Issue Form
Item
Quantity
Remark
Balance
Remark
No.
Stock Register
Date
Receipt
Of
Quantity
Price
Date of
Issue
Issue
Quantity
Receipt
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O. Purchase procedure
1.
First requirement for raw material is felt after making raw material purchase plan,
so here which product in how much quantity to purchase etc are determined.
2. After that search for the supplier is done in which they write the letters for
quotations from the suppliers. And here supplier sends the quotation for the specified
material.
3. In the third step company selects the suppliers who are providing good quality of
material at the reasonable rate.
4. Fourth step is about communication and negotiation between company and supplier
regarding quantity to be sent and by what way payment is needed to be done and
about the payment terms and condition and credit period.
5. In this step final price is decided
6. This step is about placing the order with certain quantity and delivery date.
7. Receipt of material is the last step of purchase procedure.
requirenment of raw material is felt
Inquiery about suppliers ( quatation)
selecting one supplier which satisfies more
Negotiation ( communication)
Decide the final price
Place the purchase order
Receipt of material
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Documents related with purchasing
a. Inquiry letter:
This is the letter which is send by the purchase manager to suppliers. If
communication is written then the purchase manager can have the proof. But if the
means of communication is telephonic then there can be no proof. And if the
communication is done by e-mail then there will be definite proof.
b. Response letter:
This letter is given by the supplier to purchase manager. This is the letter in response
to the inquiry letter. This letter is in the form of quotation. Which contain the price of
the goods that manager have asked and also other information.
c. Comparison Statement:
This is the statement which is prepared by the purchase manager.
After
receiving the quotation from the supplier the manager will prepare this kind of
comparison statement. This statement contains the comparison between all suppliers.
And on the basis of this they will decide whether to select the particular supplier or
not.
Comparison statements
Dhanhar Exim Pvt Ltd
Bhagal, Surat
Comparative statement of quotations
Tender no………
Opened on…………
Name of material………
Serial
Name of
no
supplier
Entered by……….
quantity
Price
Duties and
Terms of
taxes
Remarks
delivery
Checked by……….
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Purchase order
Dhanhar house,
Bhajiwadi pole,
bhagal char rasta,
Surat – 395003
Phone no: (0261)225121224
PURCHASE ORDER
Purchase Order No:
Supplier Quotation:
TO:
No. & Date:
Please supply the following items on the terms and condition mentioned below.
Sl
No
Description
Material
size
Qty.
Price
Amount Delivery
code
date
Terms of delivery……..
For Dhanhar Exim
Purchase Manager
P. Maintenance planning system
Maintenance planning for various machines used production department necessary
for continuous production. At time, break down of one machine can hamper whole
process of the production and also leads to delay delivery. To avoid all this things,
there is one master key and that is compulsory periodically maintenance.
At Dhanhar, maintenance of consumable machine is done on a fixed period and
definitely at the time of breakdown of the machinery point. After breakdown experts
for bigger faults immediately repair machinery.
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At Dhanhar maintenance of different machines is done on the based on the limits
given to each machines and also keep records for each machines with no. of
breakdown in whole month and even for year. If any machinery shows more than
expected breakdowns than it is inform by service man to top management for the
replacement of machinery
Q. Quality control system at Dhanhar Exim Pvt ltd
Quality:
Quality refers to the sum of attributes or properties that describe a product. These
are generally expressed in terms of specific product characteristics such as length,
width, colour, etc. These characteristics must be quantitatively expressed in terms
that can be objectively measured or observed.
Quality Control: Quality Control refers to those activities used to refer to a specific organization
within the Industrial enterprise which is assigned responsibility for many of the activities
necessary to achieve quality objectives.
Methods of Quality Control, which are uses in the Dhanhar Masala Pvt. Ltd
There are three method uses, which are given below:1. Inspection: inspection is done by the worker on the job and improving the quality
wherever he finds any fault.
2. Quality Circles: at Dhanhar group of many person are given various products for
production and one with best individual performance is elected as a group leader and
all group leaders meet frequently for quality improvement.
3. Statistical Quality Control (SQC): this method is followed by laboratory scientist
for checking the quality of raw material and finished products.
Most of use Inspection and Statistical Quality Control by Dhanhar Masala Pvt.
Ltd. in the Factory.
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Quality control:
Quality is the key thing the business of exports. Dhanhar is also paying more
attention to the quality control. In this company there is quality control department
directly under the quality control manager and production head.
The structure of the quality control department is as follows:
production
manager
quality control
manager
line quality
controller
(for basmati
rice , for
spices)
checkers
General guidelines for quality control
They have to use hand gloves while production during grinding, mixing, and
cleaning.
In every 5 hours the floor is cleaned by the house keeping members.
They use wet & dry dustbin to throw waste and to keep environment hygienic and
eco-friendly. Plastic bag used in a dustbin are change twice in a day.
They use fresh herbs and ground nut spices and cleaned before grinding.
They never use expire product before getting it from general store they always check
the manufacturing or expire date.
And they always clean the cleaning, mixing and grinding machine after making each
spice. For example after making tea Masala they will clean each machine.
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R. Quality control guidelines for raw material and finished products
For raw material
For raw material quality control, first the company checks the quantity in which the
order was being placed and is the product as per the order or not? And check list is being
made.
In the 2nd stage company sends the raw material to the laboratory for the checking of
quality.
At Dhanhar raw material samples are tested for multiple times, at every point of the
supply chain to ensure the highest quality and product consistency. The Dhanhar
Quality Assurance program consists of a fully-integrated QC lab which is complete
with testing capabilities on chemical, micro/ macro-sanitary & microbiology parameters
as well as Inspection standard.
Here Raw material is tested that if it of good quality or not and for how much time it is
consumable.
For finished goods
Before checking the quality of finished product it is checked that whether the weight of
packging is proper or not.
Then after it is checked that for how much time product is consumable for example if
Tea masala is consumable within 12 months of packaging and if the product made has
expiry date before given then that production lot may be rejacted.
While checking the quality of Finished products, quality of packaging is also checked,
here durability of packing and Labeling is checked.
S. In process quality control guidelines
At Dhanhar in process quality control is checked in 3 steps which are as following
1. Quality control at cleaning stage: here in this stage company checks that whether raw
material is properly cleaned or not. After Removing Dust & Stone it is checked that
whether raw material is properly cleaned or not. Here this part is more important for
ground nut spices.
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2. Quality control at grinding stage: here in this stage company checks that whether raw
material is properly grinded or not. For example red chili powder is to be made then in
this stage it is checked whether it is perfectly grinded and is in completely powder form
and here it is also checked whether chili seeds are not there in the powder.
3. Quality control at Mixing stage: here in this stage company checks that whether raw
material is properly mixed or not. for example in Shambhar Masala rock salt, cumin
seed, ginger, dry mango, ajwian, chili, black salt, dry mango ,mint leaves, compounded
asafetida, Citric Acid is mixed in proper quantity or not and it is checked through
chemical process in the laboratory.
T. Documents related to quality control
1. Finished product report
2.
Raw material report
3. Packing material report
4. In process report
5. Re-test report
6. R.M. order sample record
7. Suggestion record
8. Complain record ( outside)
9. Release order record
10. Date stock registered.
U. Different reports generated in production department
1. Material issue and receipt record
2. Stock register
3. Maintenance record
4. Machinery hour records
5. Quality control reports
6. Purchase and inquiry report
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1. Detailed organization structure of finance department
General Manager
Head of Finance
department
Accountant
Clerk
Cashier
o Here at Dhanhar finance department is being managed by head Mr. Hitesh
o Accountant has to work under Mr. Hitesh
o Clerk is at 3rd level in the hierarchy
o Cashier is working under the head of a clerk.
2. Revenue Budgeting
o Revenue budgeting plays an important role in every financial procedure.
o In this company also, revenue budgets are prepared on the requirement basis.
o In the first stage, sales plan are prepared from the entire marketing process.
o From sales plan, production plans are prepared as to fulfill the customer requirement.
o In the next stage, with the help of production plan, raw materials requirement are planned
i.e. how much raw-materials are to be purchased from different dealers.
o Estimation of labour hours is also done and estimated working days are considered and
hence total employment cost are determined.
o Lastly revenue budgets are prepared to estimate the entire financial flow of the company.
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The calculation of revenue budget is very easy to understand and calculate. We can
simply calculate the revenue budget by deducting all the expenses of the company by
all the incomes. If the revenues exceeds the expenses, that means company is in profit
criteria and if the expenses exceeds the revenues, that means company is in loss
criteria.
The revenue budgeting process can be explained as following.
sales plan by
marketing
department
total expanses
are estimeted
total income is
determined
production
plan
estimeted cost
of labour
Incomeexpanses
material
requirnment
planning
purchase of
raw material
profit or loss
3. Costing methods
The methods to be used for the ascertainment of cost of production differ from industry to
industry. It primarily depends upon the manufacturing process and also on the methods of
measuring the departmental and finished products.
There are various methods of costing are as follows:
1. Unit costing
2. Job costing
3. Contract costing
4. Batch costing
5. Process costing
6. operation costing
7. Operating Costing
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