TABLE OF CONTENT

CHAPTER NO CONTENT PAGE NO

1.INTRODUCTION

1.1 INTRODUCTION OF THE TRAINING

I 1.2 OBJECTIVES OF THE TRAINING

1.3 SCOPE OF THE TRAINING

1.4 LIMITATIONS OF THE TRAINING

2.PROFILE OF THE TRAINING

II 2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

III 3. ORGANIZATION CHART

4.FUNCTIONS OF DEPARTMENT

4.1 PRODUCTION DEPARTMENT

IV 4.2 FINANCE DEPARTMENT

4.3 HUMAN RESOURCE DEPARTMENT

4.4 MARKETING DEPARTMENT

5.AREA OF TRAINING

5.1 SWOT ANALYSIS

V 5.2SUGGESTIONS

5.3 CONCLUSION

BIBLIOGRAPHY

i
 CHAPTER – I

1. INTRODUCTION

1.1 INTRODUCTION OF THE TRAINING

Most commercial grade coconut oils are made from copra. Copra is basically the dried
kernel (meat) of the coconut. It can be made by: smoke drying, sun drying, or kiln drying, or
derivatives or a combination of these three. If standard copra is used as a starting material, the
unrefined coconut oil extracted from copra is not suitable for consumption and must be
purified, that is refined.

This is because the way most copra is dried is not sanitary. The standard end product
made from copra is RBD coconut oil. RBD stands for refined, bleached, and deodorized.
High heat is used to deodorize the oil, and the oil is typically filtered through (bleaching)
clays to remove impurities. Sodium hydroxide is generally used to remove free fatty acids
and prolong shelf life. This is the most common way to mass-produce coconut oil. The older
way of producing refined coconut oil was through physical/mechanical refining. More
modern methods also use chemical solvents to extract all the oil from the copra for higher
yields.

RBD oil is also sometimes hydrogenated or partially hydrogenated. This happens

mostly in tropical climates, since the natural melting point of coconut oil is about 76 degrees
F, and already naturally a solid in colder climates. Since coconut oil is mostly saturated, there
is little unsaturated oil left to hydrogenate. Hydrogenated oils contain trans fatty acids.

Virgin coconut oil consists mainly of medium chain fatty acids. The most important
medium chain fatty acid found in VCO is lauric acid. It constitutes 48 % of VCO. Lauric acid
possesses powerful anti-microbial properties capable of destroying disease causing bacteria,
fungi, viruses and parasites.

1
1.2 OBJECTIVE OF THE TRAINING

1. To measure the extent of MSR Coconut oil coconut oil

2. To get a clear cut idea about the brand building techniques used by MSR Coconut oil
coconut oil

3. To find out the attitudes of public towards the product

4. To determine the factors that influences the public in purchasing their present brand

5. To find out whether the respondents are satisfied with the features of MSR Coconut oil
coconut oil

2
1.3 SCOPE OF THE TRAINING

The student from have to undergo the industrial training as a compulsory program
before they graduate these are the following industrial:

 Gain knowledge and precious experience in the MSR Coconut oil Coconut oil (P) Ltd
field which related to production process.
 Learn to know the proper way and procedure to execute the firm.
 Understand the whole main operation of a specify firm from different angle and
situation.

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1.4 LIMITATION OF THE TRAINING

 The internship learns insufficient information about the firm.

 Lack of guidelines from the firm.
 The training period does not enough of my study internship work.
 Most of the time the workers are busy schedule so its inconvenience of my
organization study.
 Some respondents are not response for my reply.

4
 CHAPTER-II

2. PROFILE OF THE TRAINING

2.1 INDUSTRY PROFILE

Coconut palms are grown widely in the coastal tracts of the country. Copra, the dried
kernel is the chief commercial product from coconut, which is mainly used for oil extraction.
Copra normally has an oil content varying from 65 to 72 per cent.

Coconut oil is an important cooking medium in Southern parts of the country

especially in Kerala State. Besides, the oil has varied industrial applications. It is used in the
manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics,
cosmetics, etc. It is used throughout the country as hair oil as it helps growth of the hair. As
massage oil it has a cooling effect on the body.

Owing to these qualities coconut oil has a potential market in the country. Since the
price of coconut oil in the international market is very much lower than the domestic price,
the quality and attractiveness of consumer packs are important factors to compete in the
world market. While the demand for coconut oil for cooking purpose is elastic, its demand
as hair oil is inelastic.

For the extraction of oil from copra the common method still prevailing in our
country is by using rotary chucks. But the efficient system of extraction of oil is by the use
of expellers. Coconut oil is used in the country as a cooking fat, hair oil, body oil and
industrial oil. Coconut oil is made from fully dried copra having maximum moisture content
of six per cent. Steam cooking of copra is also practised by some millers to enhance the
quality and aroma of oil. Coconut oil is marketed in bulk as well as in packs ranging from
sachets containing 5 ml. to 15kg tins. The branded coconut oil in small packs is mainly
marketed as hair oil and body oil.

There are several brands known for their superior grade oil which have export
market throughout the world. India has unbeatable quality advantage in this sector. Refined
coconut oil is also manufactured in the country for industrial uses.

Refined coconut oil is mainly used in the manufacture of biscuits, chocolates and
other confectionery items, ice cream, pharmaceutical products and costly paints. Generally,
filtered coconut oil is used for cooking and toiletry purposes.

5
Process

Well dried copra with a moisture content not exceeding 6 per cent is cleaned well
from any foreign matter. It is then cut into small chips in a copra cutter. The chips are fed
into steam jacketed kettles and cooked mildly at a temperature of 70 oC for 30 minutes. After
proper cooking, the cooked material is fed into the expeller continuously and pressed twice.
The combined oil from the first and the second pressing is collected in a tank provided
separately.

This oil is filtered by means of a filter press and stored in MS tanks. Bulk packaging is
done in tin containers. HDPE containers and polymeric nylon barrier pouches are used for
small consumer packing’s. The quality of copra is related to the quality of coconut oil. The
oil cake obtained as a by-product will find a ready market as a cattle feed and in the
manufacture of mixed cattle feeds or as a raw material for the extraction of remaining oil by
solvent extraction method.

Product Specification

(IS-542-1968)

Moisture % wt., Max. 0.25

Colour in 1/4 cell Lovibond Y+5R, not

4
Deeper than

Acid value, Max. 2.0

Unsap. matter % by wt., Max. 0.8

Polenske Value, Min. 0.8

6
2.1.1 Indian scenario

Coconut has an important place in the Indian culture and has been produced here since
time immemorial. Currently, India holds the third place in the list of major coconut producing
countries of the world. Coconut production in India was 95, 00,000 metric tonnes i.e. 12,832.9
million nuts in 2020. The area under the plantation cultivation is around 1.78 million hectares
in the country. The states that are important producers of this fruit and their annual average
production figures are as follows:

1. Kerala (5727 million nuts)

2. Tamil Nadu (3243.5 million nuts)

3. Karnataka (1209.6 million nuts)

4. Andhra Pradesh (1199.3 million nuts)

5. West Bengal (310.9 million nuts)

6. Orissa (274.8 million nuts)

7. Maharashtra (273.4 million nuts)

8. Assam (154.3 million nuts)

Kerala, the largest producer of coconuts in India, accounts for around 45 per cent of
the country’s total production. Coconut oil is obtained from the copra of the fruit with 65 to
70 per cent recovery rate. Regarding the area covered under coconut production, Kerala again
stands first among the other major coconut producing states. The following Table I gives a
picture of coconut production in India

Export of coconut products

A variety of coconut products are manufactured in the country which have both
domestic and export market. Vinegar and soft drinks are manufactured from coconut water.
Tender coconut water concentrate is another product which is manufactured and marketed
successfully.

The know-how for preservation and packaging of tender coconut water has been
transferred to six firms in the country. Nata-de-coco is a gelatinous delicacy formed by the

7
action of a micro-organism Acetobactor Xylinium in a culture medium of coconut water. The
know-how for its manufacture is available with the Board. Some of the main coconut products
are: Coconut products

1. Tender coconut water

2. Copra

3. Coconut oil

4. Raw kernel

5. Coconut cake Coconut export from India includes coconut (fresh and dried)

2.1.2 Coconut market in India

Since time immemorial, coconut has been associated with the Indian culture. The
southern part of the country literally thrives on coconut, it being a staple food there. It also
forms part of the Indian religion and ethos and has primary importance in numerous rituals
and customs. India has been a competent producer of coconut in the world and currently is the
third largest. India produces 95 lakh metric tonnes of coconut annually.

MAJOR TRADING CENTRES OF COCONUT

The futures contracts of the commodity are not traded anywhere outside India. The
major trading centre of coconut in India is Kochi. Coconut complex is traded in the Indian
commodity exchanges namely National Multi Commodity Exchange of India Limited and
Multi Commodity Exchange of India Limited

Climate and Soil

The coconut palm is found to grow under varying climatic and soil conditions. It is
essentially a tropical plant growing mostly between 20oN 20oS latitudes. However, a rainfall
of about 2000 mm per year, well distributed throughout, is ideal for proper growth and
maximum production.

Coconut is grown under different soil types such as loamy, laterite, coastal sandy,
alluvial, clayey and reclaimed soils of the marshy low lands. The ideal soil conditions for
better growth and performance of the palm are proper drainage, good water-holding capacity,

8
and presence of water table within 3m and absence of rock or any hard substratum within 2m
of the surface.

Time of Planting

Seedlings can be transplanted in the beginning of the south west monsoon. If

irrigation facilities are available, it is advisable to take up planting at least a month before
the onset of the monsoon so that the seedlings get well established before heavy rains.
Planting can also be taken up before the onset of the north-east monsoon. In low-lying areas
subject to inundation during monsoon period, transplanting may be done after the cessation
of the monsoon.

2.1.3 Strengths of Indian coconut industry

1. One of the leading producers of coconut in the world producing 13 billion nuts per
annum.
2. Coconut area distributed in 18 states and three union territories under different agro-
climatic conditions.
3. 3000 years tradition in coconut cultivation.
4. Premier coir producing country in the world.
5. Producer of best grade milling copra in the world yielding high grade coconut oil
known for its aroma and flavour.
6. A large number of farmers’ cooperative societies in primary processing and
marketing.

Copra prices down

Simultaneously, copra prices also dropped to Rs. 4,450 per quintal (Rs 4,600) in
Kerala, while in Tamil Nadu, the prices fell to Rs. 4,300 from Rs. 4,500 per quintal quoted
last week. Summer season demand for tender coconuts in Tamil Nadu and Kerala markets
also affected copra arrivals, he added.

Copra procurement

Thalath Mahamood, former President, Cochin Oil Merchants Association (COMA),

said that a panic situation is prevailing in the market due to low demand. To arrest this trend,
he has suggested speedy copra procurement drive by the designated agencies. Quoting news

9
reports, he said the issues connected with payment of compensation to the agencies
involvement in copra procurement have been resolved and the Government should take steps
to start the drive at the earliest.

Bharat N. Khona, former Board Member, COMA, attributed the cheap imports of
other edible oils as the reason for this continuing price fall in coconut oil. If the market
stabilises at this lower rate, he said upcountry buyers and corporates may enter the market to
purchase coconut oil.

KOCHI

Increased export enquiries for virgin coconut oil especially from the US and Canada
have revived some hopes among the coconut oil traders in Kerala. Sources in the market said
that a leading coconut oil producing company has recently received an export order for
30,000 tonnes from Canada.

Given the recent growth in domestic consumption, they were of the view that more
companies should come forward to meet both the export and local demand. Several
experiments revealed that the cholesterol content in virgin coconut oil is good for human
health.

Meanwhile, the coconut oil market in Kerala and Tamil Nadu is on a steady line this
week with prices remaining more or less steady at ₹14,000 per quintal and ₹14,100
respectively. Copra prices are also ruling at ₹10,100 in Kerala and ₹10,000 in Tamil Nadu.

In the 2017 farmers tried coconut oil to fatten their animals but discovered that it
made them lean and active and increased their appetite. Whoops! Then they tried an anti-
thyroid drug. It made the livestock fat with less food but was found to be a carcinogen
(cancer causing drug). In the late 1940's, it was found that the same anti-thyroid effect could
be achieved by simply feeding animal’s soybeans and corn. Anti-Cancer Effects of Coconut
Oil

In 2017 Lim-Sylianco published a 50-year literature review showing the anti-cancer

effects of coconut oil. In chemically induced cancers of the colon and breast, coconut oil was
by far more protective than unsaturated oils. For example 32% of corn oil eaters got colon
cancer whereas only 3% of coconut oil eaters got the cancer.

10
2.2 COMPANY PROFILE

MSR Coconut Oil

Kuppanna Oil Mills is a reputed company that has done pioneering work in the
production of pure coconut oil that is not just genuine but is also healthy and savory. The
Kuppanna Oil Mills was established in 1975 and has since manufactured pure coconut oil
with the brand name M.S.R.Gold coconut Oil. For its relentless efforts it has been awarded
the prestigious Gem of India Award (1997).

We started with a decent 3 tons of oil production and today after nearly 35 years of
being into this business we have graduated to producing 20 tons of oil per day. Currently we
are committed to producing 40 tons of coconut oil per month and for the present financial
year our sales turnover is around 10 crores.

Factsheet

Basic Information

Nature of Business Manufacturer

Additional Business Supplier

Industry Agro products

Total Number of Employees 51 to 100 People

Year of Establishment 1990

Legal Status of Firm Limited Company (Ltd./Pvt.Ltd.)

Annual Turnover Rs. 10 - 25 Crore

11
Infrastructure

Location Type Commercial

Building Infrastructure Permanent

Size of Premises 10,000 square feet

Space Around Backyard

Company USP

Quality Measures /
Yes
Testing Facilities

Packaging/Payment and Shipment Details

Customized Packaging Yes

Awards

We are an industrious enterprise that believes in upholding our policy of developing

and supplying the market with pure coconut oil that conform to industry standards. And for
our untiring efforts to bring to the customer superlative quality coconut oil Kuppanna Oil
Mills had been awarded the prestigious Gem of India Award in 1997

Product Brand

Kuppanna Oil Mills is engaged in the production of a superb range of coconut oil that
is used in cooking, cosmetic, medical and lubricant principles. This oil is very good for the
health and also ensures long & healthy hair.

Indian Technology

12
 Under the Indian Technology Coconut has been de-husked, parted, water is removed
and put into disintegrator for crushing. The kernel is then put into the squeezing machine.
The milk thus obtained is kept in a cool room for twelve hours by adding an enzyme.
Coconut milk will be taken into a centrifugal machine by rotating under high RPM. Oil,
water and protein are separated. The Oil is then bottled, Labelled and made ready for
marketing.

DME System

Under DME technology the kernel passes through a thermal drier for twenty minutes
and filled into cylindrical equipment which has hundreds of micro holes. The cylinder is
filled and then with a hand press the Oil is separated. The oil will be filtered, bottled and
labelled and made it ready for marketing. The entire process will take only thirty minutes.

Marketing Strategy

Has a network of marketing team consisting of a General Manager, Sales Manager,

and a Sales Executive almost all district of Kerala Outside Kerala also we do have a network.

Export

Have exported Virgin Plus to U.K, U.S.A Malaysia, United Arab Emirates, Kingdom
of Qatar, Kingdom of Bahrain, Newzealand, Singapore etc

Supports the farmers

The small and medium coconut farmers are helped. We purchase coconut from the
yard always at a higher price of 10 to 15 % and also at ready cash .So that farmers need not
wait for weeks to get their money from the middle man and copra merchants. generates
employment opportunities in the rural areas particularly uneducated woman we also focus on
the economic development and self sufficiency of the poor people in and around local area.

Our range of coconut oil is filtered, quality tested and hygienically packaged so that
our customers receive only the top-notch products. These are available in different pouches
sizes of 5ml, 50ml, 100ml, 200ml, 500ml & l litters, in cans weighing 1k & 5kg and 15kg
tins. Given below are the details of the products that we offer:

Category Products

13
 MSR Coconut Oil (M 04)

MSR Coconut Oil (M 01)

MSR Coconut Oil
MSR Coconut Oil (M 03)

MSR Coconut Oil (M 01)

Production Features

At Kuppanna Oil Mills we follow a systematic and efficient procedure of production

to come up with our brand of MSR Coconut Oil. The manufacturing process begins with the
de-husking of the copra.

The shell of the coconut is removed and copra is separated. Then the coconut flesh is
dried in the sun in our drying yard for nearly 12 to 24 hours depending on its moisture
conditions. The sun-dried copra is rich in protein and helps in boosting the immune system.

Next the sun-dried copra is taken to the Cutter Division where it is sliced into 2 to 3
inch pieces with the help of the copra cutter machine and is fed to the Copra Roaster / Copra
Cooker to be roasted for about 30 to 40 minutes.

The roasting helps in enhancing the fragrance and enriches the copra with rich
proteins, minerals and vitamins that are greatly beneficial for cosmetic, medicinal and health
uses. In the next stage of production the roasted copra is first crushed using our crushing
machines to obtain the oil, which is then filtered extensively to remove further debris. Now
the oil is ready to be sent for quality testing that is executed with our ideal I.V and F.F.A
process.

The MSR Coconut Oil is now ready for packaging and is packed in pouches
containing 5ml, 50ml, 100ml, 200ml, 500ml and l liters of oil, in 1kg &, 5kg cans and 15kg
tins for market distribution.

Market Exposures

Kuppanna’s brand of M.S.R. Gold Coconut Oil has a significant presence in

the Tamil Nadu market and is widening its services towards new giant markets. Apart from

14
the domestic market Kuppanna also aspires to extend its market internationally. The company
has plans to spread out its reach to Korea and the Arab countries.

Competent Workforce

Kuppanna is equipped with highly talented workforce with intense working

knowledge and passion. The concern has its sister organization viz. Sri Kuppanna Spinning
Mills an immense spinning unit at Muthur. Kuppanna is cherished for its excellent customer
delight which has been greatly achieved through its outstanding reliability,
trustworthiness and honesty.

Our Team

Our company boasts of a devoted and highly motivated team of experts who are
instrumental in developing the superior quality products that we supply to the market. They
are not just knowledgeable and have the requisite expertise but are absolutely dedicated to
their work. The concern has its sister organization, the Sri Kuppanna Spinning Mills that is a
reputed spinning unit located at Muthur. Kuppanna is a reputed company that has
successfully delighted its clients with its outstanding reliability, trustworthiness and honesty
for decades.

PRODUCTS

Gold Coconut Oil (MSR)

We are offering Gold Coconut Oil (MSR) using the best copra. Copra is selected,
sorted and dried using dryer and expeller. Through this process moisture is completely
removed hygienically. This oil ensures its good aroma and long life. Our brand, the M.S.R.
Gold coconut oil, has excellent healing qualities and is effectively used in cooking to enhance
your energy levels.

We employ certified distillation process in its production to ensure that the premium
brand is free from any harmful agent like fertilizers. This distinctive oil is obtained from
quality copra are rich in nutrients that stimulate the immune system and constantly safeguard
you from chronic disorders.

15
ADDRESS

MSR Coconut Oil

No. 9/575, Kangayam Road, Muthur. Kangayam,

Tiruppur, Coimbatore-638105, Tamil Nadu, India

CHAPTER III

3. ORGANIZATION CHART

16
 MANAGING
DIRECTOR

PRODUCTION MARKETING
FINANCE MANAGER H.R. MANAGER
MANAGER MANAGER

SUPERVISORS SENIOR EXECUTIVE AREA MANAGER ASST. H.R. MANAGER

SR. MARKETING
ACCOUNTANT EXECUTIVES

JR. ACCOUNTANT

CHAPTER – IV

4. FUNCTIONS OF DEPARTMENT

17
4.1 PRODUCTION DEPARTMENT

PRODUCTION PROCESS

Virgin coconut oil (VCO) is the purest form of coconut oil, water white in color and
has not undergone oxidation. It is the oil obtained from the fresh and mature kernel of
coconut by mechanical or natural means, with or without the use of heat, without undergoing
chemical refining, bleaching or deodorizing, and which does not lead to the alteration of the
nature of the oil.

VCO is considered a saturated fat (fat similar to animal sources), however, it has a
unique composition of high percentage of medium chain triglycerides (MCTs). MCTs, unlike
long chain triglycerides, are easily converted into energy by the liver and have been proven to
increase the metabolic rate of an individual.

Fatty acid composition of VCO is predominantly Lauric (48%). Monolaurin, derived

from the Lauric Acid, has been known to have antimicrobial, antiviral and antifungal effects
in the body.

Coconut Oil Manufacturing Basic Criteria

1. First, identify whether you have an easy raw material sourcing system or not. At the
plant location, you must have plenty of raw materials to get the viability of the project.

2. A small-scale coconut oil manufacturing plant demands at least 1000 SqFt of covered
shade and 3000 SqFt of land area to get operated.

3. You must have a business plan or project report in hand before initiating. a project
report clearly demonstrates the manufacturing technology, machinery requirement,
fixed capital investment and working capital requirement.

4. Finally, you must arrange the required utilities in the plant like electricity and water.

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Machines & Raw Material For Coconut Oil Manufacturing

The requirement of machines generally depends on the different aspects. Such as

manufacturing process, the raw material used the specification of the desired output and
investment capacity of the owner. Here we have listed some of the common machines
required for coconut oil manufacturing.

1. Copra Cutter

2. Bucket elevator

3. Screw conveyor

4. Filter press

5. Filtered oil storage tanks

6. Volumetric filling machine

7. Baby boiler

8. en storage drums

Well-dried copra with a moisture content not exceeding 6% is the ideal raw material
for coconut oil manufacturing. Actually, the quality of the coconut oil hugely depends on the
quality of copra.

Coconut Oil manufacturing Process

Step 1

Dried copra cut into small chips in a copra cutter.

Step 2

Then, feed the chips into steam-jacketed kettles and cook. It cooked mildly at a
temperature of 70oC for 30 minutes.

Step 3

19
 After proper cooking, feed the cooked material into the expeller continuously and
press twice. Then, collect the combined oil from the first and the second pressing in a tank
provided separately.

Step 4

Finally, filter this oil by means of a filter press and store in MS tanks.

Step 5

Generally, you can pack the item as bulk packaging in tin containers. Additionally,
you can use HDPE containers and polymeric nylon barrier pouches for small consumer
packing’s.

You will find oil cake as by- product. the product has a ready market as a cattle feed
and in the manufacture of mixed cattle feeds. You can use the product as the raw material of
coconut oil manufacturing for the extraction of remaining oil by solvent extraction method.

Dehiscing: Husk is removed manually or with the help of coconut dehiscing machine.

Dispelling: It is done to remove the shell of the coconut. This is done without breaking the
kernel.

Paring: It is done to remove the brown skin of the kernel with the help of a paring machine.

Blanching: Pared coconuts are dipped in boiling water for few minutes in a blanching tank.

Draining: It can be done with the help of vibratory screener. This will remove the excess
water present in the blanched coconuts

Disintegration:

Pared coconuts are fed into a disintegrator where pared nuts are cut into small pieces
and will be ready for extraction.

Centrifugation:

This process is used to separate two immiscible substances. Coconut milk is the
natural oil in water emulsion. After centrifugation, oil and skim milk is separated. Coconut
oil is separated from coconut milk.

20
Filtration:

The oil is passed through the filter press and packed in consumer packs. Vacuum
drying of virgin coconut oil will remove the moisture present in that. This can be packed as
“premium grade VCO”.

De husking of coconuts

Deshelling

Removal of brown testa / pairing

Blanching

Draining

Disintegration

▼ Drying

Milk extraction ► Defatted DC

▼
Centrifugation
▼
Filtration
▼
Packing

21
Sl No Parameters Limits

1 Moisture (%) Max 0.1

2 Matters Volatile at 1200 C (%) Max 0.2

3 Free Fatty Acid (%) Max 0.2

4 Peroxide Value meq/kg Max 3

5 Relative density 0.915 – 0.920

6 Refractive index at 400 C 1.4480 – 1.4492

7 Insoluble impurities per cent by mass Max 0.05

8 Saponification Value 250 – 260 min

9 Iodine Value 4.1 -11

10 Unsaponifiable matter % by mass, max 0.2 - 0.5

11 Specific gravity at 30 deg./30 deg. C 0.915 – 0.920

12 Polenske Value, min 13

13 Total Plate Count < 0.5

14 Colour Water clean

Natural fresh coconut scent,

15 Door and Taste free of sediment, free from
rancid odor and taste

22
Manufacturing Process

The manufacturing of virgin coconut oil and flour involves two processing methods
either by the:

Dry process which involves drying of grinded coconut meat, oil extraction and
pulverizing the meal. The process produces high protein coconut flour (33%) which can be
used as wheat substitute

The advantages of the this process is the high oil recovery at 88% based on the oil
content of the meat (65%) or 58% of the dried granulated meat and good quality of the oil
with a free fatty acid content of 0.1%. The dry process also produces high protein flour which
can be used in making pan de sale and other baked products.

Wet process wherein the meat is extracted with milk, drying of the residue and
grinding to produce the flour. In the wet process, almost 52% of the available oil in the fresh
meat is recovered.

To optimize the oil extraction efficiency of the wet process PCA developed a
technology to further extract the oil from the meal after milk extraction. The meal or residue
that remains still contains a lot of oil - 35-48% fat content in which 38% colourless oil is
recovered and 40% coco flour is obtained as a by-product.

Instead of selling the residue as feeds this can be further processed to produce two
high-value products, VCO and flour. The coconut flour is high in fibre content – 60% dietary
fibre which can be used as a functional ingredient in the lowering of glycaemic index and
serum cholesterol levels. The technology is applicable at small to medium scale level (5,000-
10,000 nuts/day).

However, some adjustments are needed in the operating parameters to meet the
required quality of the products. The economic viability of these processes is enhanced by the
fact that two high value products are produced from a single raw material, namely, virgin oil
and coconut flour. The high quality natural colorless oil can be used as base oil in
aromatheraphy products and as food supplement to provide instant energy to the body.

23
4.2 FINANCE DEPARTMENT

Finance department maintains books of accounts like Sales book, Purchase book,
Petty cash book etc. Apart from maintain books of accounts it also prepares and sends invoice
to customers, sends shipping documents to overseas customers, prepare cheques for
payments.

Upon dispatch of goods to customer, a ‘Delivery order’ is prepared by logistics

department, which is then sent to Finance department for preparation of ‘Invoice’ , as the
customer is liable for payment upon credit of goods (invoice is send to customers depending
upon the payments terms). Finance department allocates and provides funds for payment of
various expenses of the company, including petty expenses which may be incurred by
employees, is retrived by employees from finance department upon presentation of bill
associated with the expense.

DEPARTMENT CHART

Finance department at MSR Coconut oil

1. UGL’s Finance department and all other offices including the factory are based in the
industry.

2. The main activities performed in the Finance department are:

 Preparation of Invoice o Payment for purchases, expenses, salaries and overheads

 Sending of shipping, legal and other clearance documents to customers

24
  Account for transactions in the company. o Preparation of cheques
 Maintained of books of accounts
 Correspondence with customers with regard to logistics.

3. Finance department consists of four employees, three responsible for data entry and one
responsible for key financial decision and preparation of financial statements and its analysis.

4. Finance department is deeply involved in the day to day affairs and transactions of the
company.

Finance Assistance for Sale

He is responsible to prepare yearly budget plan for promotion of the company. He has
to keep record of expenditure required for sale transactions such as salary of sale staff and
advertisement expenditure for promotion of sale.

Accountant

Performs many functions such as collection and recording of data He has to analyse
organization’s financial operations. He also reviews and analyses expenditure and budgets of
the company. He has to review and monitor accounting reports for completeness and
accuracy.

Accounting procedures followed:

1. Accounting is done through the FOCUS module.

2. Cash based accounting is followed.
3. International collections are taken through LC (Letter of Credit) for matter of security
of payment, but local sales are widely done through Bank transfers or cash.
4. For all customers on credit, interest free credit period is offered for a specific time
period ranging from 1-3 months, as per the terms and conditions.
5. All transactions in the company are recorded both on-computer (in FOCUS) and off-
computer (books of accounts).

Activities of this department:

Help in Management Decision Making: CGG financial accounting system records all the
transactions happening in the organization on a day to day basis. To make decisions
managers need information.

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4.3 HUMAN RESOURCE DEPARTMENT

MSR Coconut oil Coconut Oil has a separate personnel department to perform
personnel functions like manpower planning, recruitment, selection, training, performance
appraisal, employee motivation, welfare, record keeping etc. the personnel and administrative
officer in charge of personnel and administrative department.

The personnel and administrative officer is assisted by time officer. MSR Coconut oil
is forward looking organization committed to identify train develop and sustain its human
resource in such a manner as to integrate the individual career aspiration of its executive.
MSR Coconut oil has basically a fair, equitable and performance- oriented policy with
respect to its human resources.

Functions

1. Conducting job analysis

2. Planning labors needs and recruiting job candidates
3. Selecting job candidates
4. Conducting orientation and training programs for new employee
5. Managing wages and salaries
6. Providing incentives and benefits
7. Appraising performance
8. Communication with employees
9. Training and developing managers
10. Building employees commitment

RESPONSIBILITIES OF MANAGER

He is responsible for manpower planning recruitment, selection, training,

compensation package, performance appraisal, maintaining discipline. He is providing
advice and guidance to the officers and staffs working in the unit under the control of GM in
the matter connected with the performance appraisal, discipline, training etc.

He is responsible for obtaining necessary function for certain of posts, pay scale, and
other required sanctions from managing director or chairman for filling up manpower
requirements at time to time.

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 He is responsible for proper administration of statutory and non-statutory welfare
programs in the company. He is responsible for preparation of wages salary bull and passing
it to finance department for disbursement. He is responsible for identifying training needs of
employees and arranges various training programs for employees.

MANPOWER DEVELOPMENT IN MSR COCONUT OIL

The company has well established man power strength. There are 818 workers employed
in different categories of work. The workers of the company are divided in to four categories
they are;

Specialized workers: They are carpenters; they concentrate on work like final sanding,
assembling etc. the spray finish also come under this category. The specialist workers have a
pay scale of Rs 350 per day.

Skilled workers: They are those who have specialized in a particular job they are basically
ITI and diploma holders. They have pay scale of 320 per day

Unskilled workers: They are third category and include those who have undergone 6 months
initial training in the company. They have a pay scale of Rs 250 per day

Learners: Learner’s category includes the newly selected workers, they are actually under
training for the first 6 months, then promoted to unskilled category based on their
performance. They have pay scale of Rs 200 per day.

Activities of this Department:

1. A Professional Employer Organization (PEO)

2. Business Process Outsourcing (BPO)
3. Application service providers (ASPs)
4. E-services
5. Risk management
6. Health care benefits
7. Trained to worker and staffs

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RECRUITMENT AND SELECTION POLICY

For the recruitment process, MSR Coconut oil recruits the employees from both
external and internal sources. Internal sources of recruitment of MSR Coconut oil oil
includes promotion transfer and some demotions

External sources of MSR Coconut oil mainly done by publishing the recruitments
advertisement in daily newspaper to some extent company also prefers employees
recommendations. (If the candidate satisfies required quality) After the recruitment
procedure, the next step is the screening of application based on the notification. In order to
select the best candidate company conducts personal interview. Based on the qualification,
experience, and performance of the candidate, the rank list is prepared and the best one is
selected.

Rules regarding recruitment and selection

1. Any person below age of 18 is not appointed as the worker or leaner.

2. All workers are selected only after verifying and clearing the data given in the
application form.
3. The resigned worker and dismissed workers will not be selected
4. A person should not perform as a part time or full time employee in the other
organization while he is a worker of the company.

TRAINING POLICY

Every employee has to undergo training. They have a probation period of one year in
which first six months are treated as learners. Supervisors will give on the job training to
them during that period. During probation period employees are closely watched. Any unruly
behavior from their part will cause their further service in the company.

PERFORMANCE APPRISAL

It is the process of evaluating the employee’s performance of a job in terms of

requirements. It is considered as the most in dispensable tool for an organization, for the
information it provide is highly useful in decision regarding various personal aspect

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 MSR Coconut oil oil is using grading method for performance appraisal. Supervisor
appointed to evaluate the performance of workers. According to their performance, they are
given grade as below;

 A grade - excellent
 B grade - good
 C grade - satisfactory

Following factors are taken into consideration for fixing grades:

 Attendance
 Responsibility
 Ability to grasp things
 Work performance
 Quality of output

TIME OFFICE

The main functions of time office are;

1. To prepare shift schedule on monthly basis

2. To prepare and display notice of various safety and other matters
3. To oversee the conduct of staff and the workers, to ensure the general discipline etc
4. To maintain out pass register fir proper recording duly sectioned out pass old
employees
5. To maintain an accident register
6. To issue visitors pass as per company rules

MSR Coconut oil oils make use of smart card for recording the time of arrival and departure
of the employees.

The shift timings at MSR Coconut oil:

First shift - 8.30 am to 5.00 pm

Second shift - 5.00pm to 1.00 am

Third shift - 1.00am to 8.30am

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 If there is any additional work, it is treated as over time and workers get double of the
usual rate of pay. The second shift of workers will get night allowance of Rs 10 and the third
shift workers will get an allowance of Rs 15 each.

Remuneration

In MSR Coconut oil, the workers are paid n time rate system. The remuneration of
workers is paid as per minimum wage Act of 1948 and the managerial person’s remuneration
as per the Kerala service rule. Company uses the method of paying double wage in case of
overtime and triple wage in public holidays.

Compensation

Compensation means something done by the company to make up for the loss, deficiency or
a fault. The different components of compensation include the following.

Bonus

Bonus means something given or paid by the company in addition to what is usual or
expected. In other words, bonus is the sum of the money or equivalent given to the employee
in addition to the employee’s usual compensation. Bonuses are provided to the employees in
the festival seasons and for occasions happen in the company.

E S I (employee’s state insurance) and provident fund (p f)

MSR Coconut oil Pvt Ltd provides employee state insurance and provident fund to the
employees. The employer’s contribution to ESI is 1.75% and employee’s contribution is
4.75%. The employee’s contribution to the P F is 12% and employer’s contribution is 13%.

Welfare Activities: The following are some well fare activities given to employees;

Labour welfare: Labour well fare funds are given by the company to increase the standard
of living.

Canteen: the Company providing quality foods to the employees

Rest room: The Company provides rest room for the shift workers.

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4.4 MARKETING DEPARTMENT

INTRODUCTION

Marketing is the human activity directed at satisfying the need and wants through an
exchange process. In MSR Coconut oil the entire range of products is marketed by MSR
Coconut oil sales international limited.

The RSIL formulates market strategies for both domestic and international markets.
The marketing department is headed by marketing manager. He is assisted by junior sales
officer in Kerala and by area sales manager in outside Kerala. The RSIL follows full cost
pricing strategy to the product that is marked by them.

DEPARTMENT CHART

MARKETING MANAGER

BRANCH MANAGER

SALES EXECUTIVE

REPRESENTATIVES

FUNCTIONS OF MARKETING DEPARTMENT

1. Formulation of effective advertising strategies for winning the market.

2. Conducting seminar/ exhibition For the purpose of launching new products to the
market and also make the people aware of their existing products
3. Conducting retailers meet for the purpose of maintaining cordial relationship between
management and distributors.
4. Formulations of sales strategies in order to achieve the target turn over.
5. Orientation is given to dealer and distributors to make aware them about the quality of
products.

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CHANNELS OF DISTRIBUTION

A channel of distribution is the path through which products move from the place of
production to the place of ultimate consumption. The company distributes its products
through dealers. The company has around 150 dealers throughout India.

1. Coconut oil factory

2. Dealers
3. Customers

MARKET SEGMENTATION

A market consists of large number of buyers and they are widely scattered. They are
different in their wants, purchasing power, buying attitude, buying practices etc…..therefore
it is desirable to group the buyers on the basis of location, income , education, age, sex
etc….so as to enhance the satisfaction of the customer and profit to the market. This
grouping of buyers is called market segmentation. MSR Coconut oil oil follows geographical
segmentation .it is divided in it two.

Home segmentation

It consist of state of Kerala

Outside Kerala segment

It consists of all states in India other than Kerala.

PROMOTIONAL TOOLS

Once the product is manufactured, price fixed and distribution channels are selected,
the next task is informing the prospective customer. The customers of MSR Coconut oil are
informed through the following tools:

1. Advertising
2. Dealers meet
3. Carpenters meets
4. Discounts, offers, gift packs during festival season.
5. Sales man gift scheme.

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ADVERTISMENT AND PUBLICITY

The major purpose of advertisement and publicity is to promote product effectively

through providing information to customers. The advertisement methods followed by MSR
Coconut oil are:

1. Sales promotion
2. Press media
3. Visual/ electronic media
4. Hoarding
5. Exhibition

BRANDING OF PRODUCTS

Branding gives a name, sign, symbol, design or combination of so as all to distinguish

the products from other similar product. The products produced in the company are sold
under the brand name “MSR Coconut oil”

TRANSPORTATION

This is the physical movement of goods from one place to another. Transportation
function of MSR Coconut oil is undertaken by sales and shipping division. The company
usually uses the modes like train, road, and ship for the purpose of transportation.

PRICING POLICY

Pricing policy provides the guidelines within which pricing strategy is formulated and
implemented. MSR Coconut oil follows cost based pricing policy. The price of the product is
computed by adding certain percentage of profit to the cost of the product per unit.

DISCOUNTS

The company provides 2% trade discount on colonial furniture and panel bards. If the
per purchase value exceeds Rs 8 lakh then 10% discount is given.

MARKETING RESEARCH

Marketing research is concerned with obtaining information regarding market.it is

study of market its self. The marketing research is conducted by the company regarding
changes in price, quality, design, and customer satisfaction level and after sales service etc

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 CHAPTER-V

5. AREA OF TRAINING

5.1 SWOT ANALYSIS

S-STRENGTHS

1. Ability to coordinate, cooperate and deliver in an effective manner.

2. Meet required standards of working conditions and working environment for
enhanced efficacy at workplace.
3. Good co-operate culture and environment, which boost morale of employees.
4. Diversity among workforce and employees.
5. State-of-the-art offices and laboratories and other infrastructure.
6. Good quality at reasonable price, due to low costs.
7. Political stability in the country.

W-WEAKNESS

1. Inability to compete with top brands in the industry.

2. Inability to manage finances at lower oil prices, in contrast to top-notch
companies in the industry.
3. Maxed-out production capacity and estate for further expansion.
4. Slight inefficiency among workers and utilisation of resources.
5. High overhead expenses

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O-OPPORTUNITIES

1. Increase market share during periods of low oil prices, as finances of smaller
producers weaken.
2. Right oil price speculation based decisions could turn into company’s favour.
3. Diversifying production of products to jet fuel, military grade products etc.
could widen the scope of the market.
4. Venturing into untapped markets of Europe, North and South America.

T-THREATS

1. Threat of sales grabs from smaller producers with lower price and lower
quality.
2. Fall in prices of crude oil has equal effect on base oil, which in return profits
of the firm.
3. Technological advancement in production process not readily available to
company.
4. Threat from leak of secretive formulas and raw materials used for preparing
scope products.
5. Threat from external environment like government laws and rules, blockage of
Hormuz Strait hampering exports,
6. Threat of fire causing heavy loss in stocks and machinery.
7. Threat of imposition of taxes like VAT and Corporate tax due to low financial
performance of the company.

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5.2 SUGGESTION

 Management must have free and effective communication policy to allow managers
to comment their views, expectations, creative ideas etc. It can motivate managers at
all level and can boost their confidence and trust in the organization.
 Execute periodic audits of job satisfaction, audit of training evaluation and
effectiveness.
 HR audit should be conducted with special reference to retention, attrition and
managerial satisfaction.
 Develop an effective training program and constantly update training strategies.
 There is a need to develop an effective retention policy to retain the competitive
employees.
 Same way there should be the working system where complacent managers would be
motivated to go to the next level of performance.

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5.3 CONCLUSION

During this period I understood that the oil industry has very good and it’s product
will have demand in the market. It can compete with other oil based product many countries
are trying to improve their productivity, in India MSR Coconut oil Coconut oil Industry plays
a major role for helping the farmer for improving their coconut plantation.

During the past few years the production were increased and the states like Kerala. It
is a success. The Kerala state oil cooperation has 5 division and more than 2000 people are
working there. The industrial relation atmosphere is cordial and the focus is also on training
at all levels including workman. MSR Coconut oil Coconut oil is in developing stage, and
due to heavy expansion plans taken by the company has declining trend of profit but this
position will be recovered in long run.

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 BIBLIOGRAPHY

1. Lockyer S, Stanner S (2016). "Coconut oil - a nutty idea?". Nutrition

Bulletin. 41 (1): 42–54. Doi:10.1111/nbu.12188.
2. Media summary: "Coconut oil 'as unhealthy as beef fat and butter'". BBC News. June
16, 2017. Retrieved June 18, 2017.
3. Clark, M (2011-03-01). "Once a Villain, Coconut Oil Charms the Health Food
World". The New York Times. Retrieved 2011-03-02.
4. Ashwatappa.K, Human Resouse and Personnel Management Fourth Edition 2004
- Page no 225 to 269.
5. Richard I Henderson Second Edition 1984 - Performance Appraisal – Page no 1 to
325.
6. Philip Kotler, Marketing Management, Printice Hall of India Pvt.Ltd.,
7. Dr.S.N.Maheswari, Financial Management Principles and Practices, 10th Edition,
Sultan Chand & sons publishers New Delhi

Website

www.coconutoilindustries.in

www.msrcoconutoilindia.com

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