Final Internship
Final Internship
Final Internship
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
“JnanaSangama”, Belgaum – 590018
Department of MBA
K.S. School of Engineering and Management
No. 15, Mallasandra, off Kanakapura Road, Bangalore-560109
(2019)
DECLARATION
I, Nagaveni D hereby declare that the Internship report entitled “An Organization
Study” with reference to Pagariya Food Products Pvt Ltd” prepared by me under the
guidance of Prof. Pradeep, faculty of M.B.A Department, K.S. School of Engineering
and Management and external assistance by Mr. MUNESHA V, Managing Director at
Pagariya Food Products Pvt Ltd., Harohalli, Kanakapura(TQ).
I also declare that this Internship work is towards the partial fulfillment of the university
regulations for the award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.
I have undergone a summer project for a period of Four weeks. I further declare that this
project is based on the original study undertaken by me and has not been submitted for
the award of any degree/diploma from any other University / Institution.
Place: Nagaveni D
The satisfaction and euphoria that accompany the success of any task would be
incomplete without the mention of the people who made it possible, whose constant
guidance and encouragement crowned my effort with success.
I take the opportunity to express my gratitude and thanks to our computer lab staff and
library staff for providing me opportunity to utilize their resources for the completion of
the project.
I would like to record my sincere thanks especially to all staff of Pagariya Food Products
Pvt Ltd., Harohalli, Kanakapura(TQ),for their great help.
Last but not the least, I thank my family and friends for their invaluable help and support
during the project work.
NAGAVENI D
1KG18MBA34
TABLE OF CONTENTS
02 ORGANIZATION PROFILE
03 MCKENSY’S 7S FRAMEWORK
04 SWOT ANALYSIS
06 LEARNING EXPERIENCE
* BIBLIOGRAPHY *
* ANNEXTURE *
LIST OF TABLE
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
LIST OF CHARTS
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.16
5.18
5.19
CHAPTER-1
INTRODUCTION, INDUSTRY
PROFILE
AN ORGANIZATION STUDY AT PAGARIYA FOOD PRODUCT PVT LTD
(Kwality Spices)
and traditional foods, and transformation of retail stores in urban cities, good health
and hygiene awareness among people are some of the strength of this industry.
Difficult in getting into large rural market, poor infrastructure like cold storage, high
tariffs, old laws, and unscientific method are some of weakness associated with this
industry.
9 percent in 2007-08 with the help of growing GDP. In the F.Y 2011-12 the industry’s
contribution was 1.5 percent to GDP. The export of processed food and cereals was
7892 million US$ the year 2010. Food processing industry includes various methods
and techniques which can create lot of employment opportunity for people. It
approximately employs 28 lakh persons daily and indirectly employs more than 75
lakh people. Along with great contribution to economy this industry has also potential
to attract 33 billion US$ (Rs 150000 crore) of investments in next ten years. According
to the report of 2015 this industry is forwarding towards greater avenue has there is
increase in level of processing of perishable from 6 percent to 22 percent.
Supermarkets and shopping malls have been opened across the country and
helped the customers in making shopping for food a pleasurable experience.
The convenience of online shopping increased the sales of products which
resulted in the growth of food industry. Variety of choice and doorstep delivery
made customer to buy various food products and groceries online.
Traditional1Indian1food1system1was1update.
CHAPTER 2
ORGANIZATION PROFILE
COMPANY PROFILE
Pagariya Food Products Pvt Ltd was incorporated on 13th October 2009. The company
started manufacturing food items under the name of Kwality Spices. Kwality spices
and food products are one of the fast growing brand in the sector. It is from the house
of Pagariya food products Pvt ltd. The Kwality has more than 35 products spread
across spices, spices mix, curry mix, ready to eat, cereals etc. The dependable taste of
sustenance things which were made by grandmas utilizing the plain arranged and high
quality flavors has been recovered with the prepared to utilize prepared blend Masalas.
For diminishing the hole between natively constructed taste and prepared to-utilize
sustenance, Kwality began producing Masalas with the most inventive and
mechanical driven approaches to accomplish customary Grandma's flavor with a
simple made taste. Kwality unfurls the otherworldly mix of different flavors to frame
an ideal blend of Masalas for client's scrumptious dishes. The organization endeavors
in drawing out the fortes of Indian flavors and imparting the learning of mixed flavors
to the Indian kitchen that are unique and model. The narrative of this seeking on the
current things of Indian flavors has begun with a gracious start as family run business
which presently has revamped into a professionally overseen association having roots
crosswise over India. The accompanying are the creative and innovation driven ways
that the organization has utilized to accomplish conventional flavor with a simple
made taste. Dheeraj Kumar, Bhawarlal Pagariya and Naresh Pagariya are the
executives of Pagariya food product Pvt ltd. Dheeraj Jain is the current CEO (Chief
executive officer) of the company. At present the company is employing more than
280 employees in whom 40 are factory workers, 90 are contract workers, 45 are
office staff and 98 are sales department employees. It has also got a research and
quality check team consisting of 5 employees.
Kwality food products are widely delivered, which are produced under good
manufacturing practices with internationally trusted HACCP (Hazard analysis and
critical control points) certification. The raw goods for the production are obtained
from best sources from various parts of India. This raw materials go through a strict
quality control framework which are of global standards. Food products are produced
and stuffed utilizing the conditions of innovation under the good assembling practices,
the HAPPC certification ensures that the products are of best quality. The Masalas
and other food items manufactured by Kwality are pressed and marketed with the
world class packing and label. Fragrance retention innovation are adopted to convey
the new taste and flavor to customers in their kitchen. Manufacturing unit of Kwality
foods is situated at a convenient location in KIADB Industrial area, Harohalli,
Kanakapura taluk which has good infrastructure facilities. Kwality products are
likewise available in neighboring countries like Nepal, Sri Lanka, Malaysia,
Mauritius, UAE, Qatar, Maladies and in some other countries like South Africa, USA,
Kenya, Nigeria, Tanzania and Seychelles. Along with exporting to many other
countries, Kwality food is also concentrating on expanding their roots across central
and north regions of India.
Technology
KWALITY makes their item under better assembling rehearses with universally
acknowledged HACCP (Hazard investigation and basic control focuses) rules to
achieve the best quality. Crude materials are from acquired the best of the cultivators
at various areas of India and are prepared subsequent to going through stringent
quality control frameworks of present universal norms. The items are pressed and
exhibited in world class bundling with 'fragrance maintenance' innovation to convey
the new taste and flavor at the kitchen.
Product Range
The propel office utilized by the organization empowers them to create an expansive
scope of nourishment things in India which covers flavor powders, Masalas, moment
items, soup powders, chips, Choco drops, breakfast oats like corn, oats muesli and so
forth. Remembering accommodation factor, KWALITY is fabricating extensive
variety of in excess of 50 items in 110 distinctive pack size to fulfill the necessities of
families. It is the main organization in India to present Gobi Manchurian mix and
Noodles Masalas.
Product Availability
At present Kwality food products are available in seven south Indian states which
include Karnataka, Telangana, Andhra Pradesh, Tamilnadu, Maharashtra and Goa.
The company is steadily expanding their operations and product availability to other
states and region across India. The marketing and sales team that are professionally
managed and driven assure that the Kwality products are readily available through
various intermediate like super stockiest, distributors, wholesalers and retailers.
Mission: To provide the assurance that our customers can produce their products
VISION: We share our knowledge and experience to optimize our and our
customers’ performance. We constantly initiate and innovate in order to be decisive
in our market. We secure an uninterrupted supply of authentic, natural and food safe
spices. We commit to the importance of developing a sustainable supply chain.
Therefore we invest in people, in relationships, in order to be partners.
QUALITY POLICY: Quality is the mission of the organization and Quality strategy
is the imperative instrument that the organization used to achieve its central goal. The
arrangement is very much characterized, all around incorporated and exceedingly
formalized.
2.4 PRODUCT/SERVICES
Pav Bhaji
Box – 50g, 100g Dry mango, coriander
Masala
Fennel, cumin, chilli Bay
leaf, kasuri methi Anistar,
cassia, clove
Rasam Powder
Box – 6g & 20g Coriander, fenugreek Chilli,
cumin, turmeric Refined
vegetable oil Channa dal,
ginger
CHAPTER-3
MCKINSEY’S 7’S FRAME WORK:
STRUCTURE
R STRETAGY
SYSTEMS
SHARED
VALUES
O
STYLE
SKILLS
F
SATFF
McKinsey 7-S system or model was created in 1980s by two advisors Tom
Peters and Robert Waterman, who were working at the McKinsey and Company
counselling firm, the essential commence of the model is that there are seven
inner parts of an association that should be related appropriately if the
association needs to be attainment
SYSTEM
Kwality spices is having various systems like financial and HR systems, information
system as well as communications and document storage. Through this system, they
coordinate various functions & try to control by evaluating each system effect on the
organization. Hence it has strict internal rules & policies with proper process to keep
all the staff & system on the track to achieve success.
STYLE
Kwality has both autocratic and democratic leadership style. This helps the
employees and low level people to suggest about their requirement some while time
of their work. Majority of the time all the actions and decisions about the activities in
various departments has been taken by the managers & its top-level management to
have a proper control on the process and its production.
STRATEGY
Strategy is essential for the firm to attain competitive advantage & successfully
compete in the marketplace. Kwality Company has to developed a sound strategy for
a long term aligned goals. Company has good strategy for pricing, distribution,
system, promotional, production and market to achieve sustained competitive
advantage and successfully compete in the market. Hence company analyze the
market situation and company’s goals before making a sound strategy.
SHARED VALUES
Kwality spices will communicate to it employees regarding it’s the mission and vision
of the organization. The values explain as the corporate values include diligence,
integrity, and teamwork among others. However, the organizational culture that these
employees are intended to embrace tends to be in discordance with the aspirations of
individual employees which partially embraced and are only adhered to where there is
fear of encountering certain corrective measures. Also, management style on the
operational levels is participative where common operational problems are solved
collectively within the work groups.
STRUCTURE
Kwality company organisational structure represents the way how the business
divisions and various units are organized and includes the information regarding
who is accountable to whom. Here the company has functional organisational
structure in Which each function has mangers or departmental head, who is
responsible for attaining the workload assigned to him.
more you have to choose from, the easier it will be to switch to a cheaper alternative.
But the fewer suppliers there are, and the more you need their help, the stronger their
position and their ability to charge you more. That can impact your profit.
BUYER POWER: Here, you ask yourself how easy it is for buyers to drive your
prices down. How many buyers are there, and how big are their orders? How much
would it cost them to switch from your products and services to those of a rival? Are
your buyers strong enough to dictate terms to you? When you deal with only a few
savvy customers, they have more power, but your power increases if you have many
customers.
SWOT ANALYSIS
STRENGTH
Company’s primary strength is “Product Quality” and loyalty of satisfied customer.
Efficient workforce comprised of skilled and semi-skilled workers.
One of the emerging medium scale enterprises.
Operations in food processing industry where demand is increasing.
Global operations with exporting to more than 12 countries.
Having a good research team and introduction of new food items.
Good infrastructure facility with well-equipped machinery.
Efficient channel of distribution.
Weakness
Increasing competition due to new entrants in the industry.
A promotional activity is not up to mark.
Company’s products are not available in remote areas.
Difficulty in sourcing the quality raw materials.
Brand is still developing in market.
OPPORTUNITY
Expanding the business operations PAN India.
Rural market is available for selling products.
Food processing industry has high growth potential with huge investment
opportunity.
Opportunity for increasing market share and sales.
Reaching the Non user of the product.
Continuous innovation and more research.
Sponsorship, Marketing and Advertising can boost sales.
THREAT (CHALLENGES)
Threats of new entrants and competition existing firm are a challenge.
Unstable economy and fluctuating market demand.
Taste and preference of customers are changing every day.
Adopting to the rapid changing technology.
Customers can switch the brand easily without much difficulty.
Choosing and implementing the best strategy.
CHAPTER-5
ANALYSIS OF FINANCIAL
STATEMENT
As on As on As on
Particulars Notes 31.03.2016 31.03.2017 31.03.2018
1. EQUITY AND
LIABILITY
1. Share holders fund
(a) share capital 3 1,00,000.00 1,00,000.00 1,00,000.00
(b) Reserves and surplus 4 -61,033.08 27,97,170.35 13,68,068.2
2. Non-current liability
(a) Long term borrowings --- --- ---
(b) Deferred tax liabilities --- --- ---
(c ) Other long term liabilities --- --- ---
3. Current liability
(a) Trade payables 5 1,94,634.91 2,76,829.00 2,35,731.95
(b) Short-term borrowings 6 2,56,422.00 19,49,745.00 11,03,083.5
(c ) Other long term liabilities 7 1,34,654.00 1,73,130.00 1,53,892.00
2. ASSETS
1. Noncurrent assets
(a) fixed assets 8
(i) Tangible assets 8,866.93 69,904.93 39,385.93
(b) non-current investments --- --- ---
(c ) Deferred tax assets (net) --- --- ---
2. current assets
5.2 P&L ACCOUNT OF PAGARIYA FOOD PRODUCT PVT LTD for the year
ending ……….. (In Rupees)
INCOME
1. Revenue from
13 40,14,590.20 1,01,26,056.23 70,70,323.00
operation
EXPENSES
Employee benefits
16 8,23,586.00 15,89,220.00 12,06,403.00
expenses
Depreciation and
8 8,866.93 3,224.00 6,045.46
amortization expenses
Profit before
Exceptional and
79,537.27 28,58,203.43 14,68,870.3
extraordinary items
and tax
Profits before
extraordinary items 79,537.27 28,58,203.43 14,68,870.3
and tax
2.18 1.96
2.5
2
1.05
1.5
1
0.5
0
2016 2017 2018
Interpretation;
From the above table and graph we can interpret that company is not in a good solvency
position in the year 2016 & 2018 but in the year 2017 company’s current ratio increased
to 2.18 which depicts that in the year 2017 company has a very good position.
Equity
Solvency Ratio = ------------------- * 100
Total assets
Table 5.2 showing Solvency Ratio of the organization
Interpretation;
Solvency ratio indicates the financial ability of the organization to meet its total liability
out of total assets. It is said that more the solvency ratio, more is the financial soundness.
Hence from the above table and graph it is analyzed that company has a very good
solvency ratio. In the year 2017 the solvency ratio is very high i.e., 54.70.
Ideal Ratio = 1
2.5
1.97%
2
1.77%
1.5
Quick Ratio
0.95%
1
0.5
0
2014 2015 2016
The ideal ratio is 1. From the above table and graph it can be noticed that in the year 2014
the quick ratio was 0.95 which is less than the ideal ratio. This indicates that it does not
have sufficient quick resources to meet its immediate obligation and hence company took
the necessary steps like increase investment in quick assets of the concern by taking this
step the quick ratio of the concern got increased in the year 2015 to 1.97% but gradually
in the year 2016 it has decreased to 1.77% which is also more than the ideal ratio and
hence it depicts that company has maintained a very good Quick Ratio.
The equity capital which is also termed as long term sources of fund is generally utilized
to structure the fixed assets of an organization. The ratio between these two elements is of
great importance for ascertaining the financial soundness of a firm.
It is the ratio which establishes the relation between the fixed assets and networth.
It is computed as follows
5.6 Table showing the Fixed Assets to Networth Ratio of the organization
5.6 Chart showing the Fixed Assets to Networth Ratio of the organization
0.09
0.08
0.08
0.07
0.06
0.05
Fixed Assets to Networth
0.04 Ratio
0.03
0.03
0.02
0.02
0.01
0
2014 2015 2016
There are changes in fixed assets to networth ratio, in the year 2014 the fixed assets to
networth is 0.08 times which is decreased in the year 2015 to 0.02 times and there is a
slight changes in the year 2016 which is increased to 0.03 times. It shows that fixed assets
are varied from the period 2014-2016.
The standard fixed asset to networth ratio is 2/3 times. From the above table and chart it
is noticeable that the companies fixed assets to networth ratio is not meet the generally
accepted ratio hence it is advisable for the company to take the necessary steps to
increase the fixed assets to networth ratio.
Generally the working capital is ascertained based on the turnover or sales. Working
capital is the difference between current assets and current liabilities.
Working capital turnover ratio is the ratio between net sales and working capital of an
organization.
Net Sales
Working Capital Ratio = -----------------------------
Working Capital
100
94.22%
90
80
70
60
50
Working Capital Ratio
40
30
20
10
2.63% 1.55%
0
2014 2015 2016
Working capital is directly co-related with sales or turnover. More the turnover more will
be the working capital requirement. As such, there is no ideal working capital turnover
ratio. It is said that more the ratio more will be the solvency and operational efficiency of
an enterprise.
From the above table and graph it can be interpreted that company had a very good
solvency position in the year 2014 that is 94.22% but it has drastically reduced to 2.63%
and 1.55% in the year 2015 and 2016 respectively as this does not depict a very good
solvency position of the company it is advisable that company has to take appropriate
steps to increase the working capital ratio of the firm as it is important to meet the
working capital requirement.
It is the ratio between fixed assets and sales or turnover. It reflects the efficient use of
fixed assets for revenue generation.
It is computed as follows
Net Sales
Fixed Assets Turnover Ratio = ------------------------
Fixed Assets
5.8 Table showing the Fixed Assets Turnover Ratio of the organization
5.8 Chart showing the Fixed Asset Turnover Ratio of the organization
350
319.84%
300
250
200
Fixed Asset Turnover
150 Ratio
106.28%
100
56.17%
50
0
2014 2015 2016
From the above table and chart it is noticed that in the year 2014 there was high fixed
assets turnover ratio i.e., 319.84%. When compared to 2014 and 2015 there is decrease of
213.56% of fixed assets turnover ratio which is a great initiative taken by the company to
decrease the level of turnover of fixed assets. In the year 2016 the fixed assets turnover
ratio is 56.17% which is highly appreciable when compared with last two years. This is a
very good sign since there should not be high degree of change in percentage of the fixed
assets turnover ratio. By decrease in the percentage of the fixed assets turnover ratio the
revenues of the organization is increasing year by year.
Gross profit ratio indicates the trading results of an organization. This indeed does not
reflect the overall profitability position of an organization. Hence net profit ratio is
essentially required in decision making.
Net profit ratio is the ratio between the net profit and net sales of an organization.
70 66.38%
60
50
38.47%
40
Net Profit Ratio
30
20
10
2.804%
0
2014 2015 2016
From the above table and graph it is interpreted that that company is having a very good
net profit ratio which is constantly increasing year by year. As the fixed assets turnover
ratio of the organization has decreased year by year the company has managed to increase
the net profits of the company which reflects in the balance sheet that company is making
very good revenue.
In the year 2014 the net profit ratio was 2.804% where as in the year 2015 it has
increased by 35.66% at present that is in the year 2016 its net profit ratio is 66.38%
which is highly appreciable.
CHAPTER-6
LEARNING EXPERIENCE
LEARNING EXPERIENCE
MBA is a graduation which cannot find application of the skills learnt during the course;
it is where MBA internship plays a crucial role in giving us the required industry work
exposure and gives a firsthand experience for the students. Internship just not provides
the experience but also acts up to different skills, knowledge, and attitude about the
corporate world. Internship is also a stepping stone for the students which give the flavor
for working environment and the culture of the corporate world.
By undergoing the internship progress it made me to understand the various dimensions
of the organization and its working culture. It gave me an opportunity to understand the
manufacturing process of the semiconductors manufactured by the organization.
Semiconductor industry comes under the manufacturing industries. There exist a various
department in the organization such as HR department, Accounting, Manufacturing,
Packing, Research and development, Marketing departments etc…, Company follows a
very strict rules and regulation in the premises. Company is entitled to the ethical values
and norms.
These are following learning experience outcome
I learn strong disclosure to the company and understand its various
functional and marketing activities that impacts on building brand & equity
of Kwality.
I understand about several organization’s working culture and its
environment & its various functional departments
I understood various roles of each organization employees& functional
departments.
I learn that various factors influencing the brand awareness and brand
loyalty from this study.
The various manufacturing process of Ready to eat products & also
regarding promotional events done at the company
I understand how various customers perceive the product & prefer based
upon the brand name, quality & thickness
BIBLIOGRAPHY
BIBLIOGRAPHY
WEB RESOURCES
www.kwalityspices.com
www.zaubacorp.com
www.Wikipedia.com
ANNEXURE
As on As on As on
Particulars Notes 31.03.2016 31.03.2017 31.03.2018
1. EQUITY AND
LIABILITY
1. Share holders fund
(a) share capital 3 1,00,000.00 1,00,000.00 1,00,000.00
(b) Reserves and surplus 4 -61,033.08 27,97,170.35 13,68,068.2
2. Non-current liability
(a) Long term borrowings --- --- ---
(b) Deferred tax liabilities --- --- ---
(c ) Other long term liabilities --- --- ---
3. Current liability
(a) Trade payables 5 1,94,634.91 2,76,829.00 2,35,731.95
(b) Short-term borrowings 6 2,56,422.00 19,49,745.00 11,03,083.5
(c ) Other long term liabilities 7 1,34,654.00 1,73,130.00 1,53,892.00
2. ASSETS
1. Noncurrent assets
(a) fixed assets 8
(i) Tangible assets 8,866.93 69,904.93 39,385.93
(b) non-current investments --- --- ---
(c ) Deferred tax assets (net) --- --- ---
2. current assets
P&L ACCOUNT OF PAGARIYA FOOD PRODUCT PVT LTD for the year
ending…………...
INCOME
1. Revenue from
13 40,14,590.20 1,01,26,056.23 70,70,323.00
operation
EXPENSES
Employee benefits
16 8,23,586.00 15,89,220.00 12,06,403.00
expenses
Depreciation and
8 8,866.93 3,224.00 6,045.46
amortization expenses
Profit before
Exceptional and
79,537.27 28,58,203.43 14,68,870.3
extraordinary items
and tax
Profits before
extraordinary items 79,537.27 28,58,203.43 14,68,870.3
and tax
As on As on As on
Particulars Notes 31.03.2014 31.03.2015 31.03.2016
1. EQUITY AND
LIABILITY
1. Share holders fund
(a) share capital 3 1,00,000.00 1,00,000.00 1,00,000.00
(b) Reserves and surplus 4 -61,033.08 27,97,170.35 13,68,068.2
2. Non-current liability
(a) Long term borrowings --- --- ---
(b) Deferred tax liabilities --- --- ---
(c ) Other long term liabilities --- --- ---
3. Current liability
(a) Trade payables 5 1,94,634.91 2,76,829.00 2,35,731.95
(b) Short-term borrowings 6 2,56,422.00 19,49,745.00 11,03,083.5
(c ) Other long term liabilities 7 1,34,654.00 1,73,130.00 1,53,892.00
2. ASSETS
1. Noncurrent assets
(a) fixed assets 8
(i) Tangible assets 8,866.93 69,904.93 39,385.93
(b) non-current investments --- --- ---
(c ) Deferred tax assets (net) --- --- ---
(d) Other non-current assets --- --- ---
2. current assets
INCOME
1. Revenue from
13 40,14,590.20 1,01,26,056.23 70,70,323.00
operation
EXPENSES
Employee benefits
16 8,23,586.00 15,89,220.00 12,06,403.00
expenses
Depreciation and
8 8,866.93 3,224.00 6,045.46
amortization expenses
Profit before
Exceptional and
79,537.27 28,58,203.43 14,68,870.3
extraordinary items
and tax
Profits before
extraordinary items 79,537.27 28,58,203.43 14,68,870.3
and tax
Extraordinary items *** *** ***