CHAPTER: 1

INTRODUCTION ABOUT THE ORGANISATION AND

INDUSTRY

INTRODUCTION ABOUT THE ORGANISATION:

The brand RELIABLE CASHEW is known for its product quality and customer
satisfaction. To its core, the brand always stood in setting high quality standards, right
from its inception. The company is a worldwide cashew nut exporter.

Reliable Cashews, the young and contemporary rising iconic brand is charged and
energetic. The brand which laid its foundation back in 2005 has already sprawled across
the country. The brand RELIABLE CASHEW is known for its product quality and
customer satisfaction. To its core, the brand always stood in setting high quality
standards, right from its inception. The company is a worldwide cashew nut exporter.

Reliable Cashews, the young and contemporary rising iconic brand is charged and
energetic. The brand which laid its foundation back in 2005 has already sprawled across
the country.

The Company is one of the top five processors of cashew in volume in India, it has
sufficient volume of production in all grades of kernels to meet the requirements of the
customers. The company enjoys a premium in the domestic and International markets
for its commitment to quality, consistency and fulfillment of all committed delivery
with zero default.

1
INTRODUCTION ABOUT THE CASHEW INDUSTRY

The food processing industry is one of the largest industries in India and ranks fifth in
terms of production, consumption and exports. As per the latest data available, food
processing sector is expected to reach US$ 258 billion in FY15

Food processing is the transformation of agricultural products into food, or of one form
of food into other forms. Food processing includes many forms of processing foods,
from grinding grain to make raw flour to home cooking to complex industrial methods
used to make convenience foods

Cashew is often regarded as 'poor man's crop and rich man's food' and is an important
cash crop and highly valued nut in the global market. The area under cashew cultivation
is the highest in India. However, it is not so in the case of productivity, processing and
quality. In reality, the Indian cashew industry has a high untapped potential to support
the livelihood of cashew farmers, provide numerous employment opportunities and
improve returns through global trade. The present work projects the need for important
changes to be made in the existing system, so as to find a substantial improvement in
the growth of the Indian cashew industry.

India developed more of refined method for removing the caustic shell oil. Cashew are
grown in following countries, they are Japan, China, India, Indonesia, Nigeria, United
States, Thailand, and Western Africa.

World Bank and IMF recognized cashew-nut industry is one the important tool for
poverty eradication at global level. It shows important of cashew business and its strong
existence in India. In spite of such huge potential cashew processing industry is facing
different problems such as lack of infrastructure ability, lack of supply of raw cashew,
lack of availability of finance, collection of raw cashew, unavailability of warehouse,
marketing of cashew kernels, lack of technical knowledge and especially processing
technology and packaging of finished products. This industry has great prospects such
as scope for more cashew cultivation and cashew production, employment generation,
formation of cashew processing units, alcohols production from cashew apple, shield
oil production, rural development, poverty elimination, development of social and
economic backward class and environment protection etc. This industry has domestic
as well as foreign market

2
Cashew Industry in India

Portuguese soldiers in the later half of the 16th century, as measure to check soil erosion,
introduced cashew in west coast of India. Cashew which has been recognized as a
delicious food for not less than 100 years, has acquired universal acceptance. In India
Cashew tree was first introduced in Goa. From Goa cultivation of Cashew spread over
the west coast of India rapidly. In India important cashew growing States are Kerala,
Karnataka, Tamil Nadu, Andrapradesh, Goa, Maharastra and Orissa.

Today, in India there are 1098 cashew processing factories with a processing capacity
of more than 12lakh matric tons of raw cashew nuts. They can provide employment
opportunity to 3.2 lakh people.India exports about 90% of the processed cashew nuts
to other countries. Kerala, which accounts for more than 60% of production of the raw
nuts and about 85 to 90% of the total export of cashew kernels from the country, has a
near monopoly over the industry. India has entered world kernel market in 1925 itself
with the export of 250 matric tons of cashew kernels worth Rupee 5 lakh, although
cashew nuts were exported to the USA as early as 1920.

India is the global leader in world cashew business and cashew-nut industry is one of
the important food processing industries in world. However India is the largest
producer, processor, exporter and importer eschew in the world. India is providing
cashew to the rest of the world [1]. India is meeting world demand of cashew. India has
a tremendous potential of cashew production and export to other countries. Every year
India earns more than 2000 cores rupees through cashew trade. Cashew nut industry is
one of the important small scale industries in the country which is playing significant
role in rural development. World Bank and IMF recognized cashew-nut industry is one
the important tool for poverty eradication at global level. It shows important of cashew
business and its strong existence in India.

3
 CHAPTER: 2

2.1 ORGANISATION PROFILE

The brand RELIABLE CASHEW is known for its product quality and customer
satisfaction. To its core, the brand always stood in setting high quality standards, right
from its inception. The company is a worldwide cashew nut exporter.

Reliable Cashews, the young and contemporary rising iconic brand is charged and
energetic. The brand which laid its foundation back in 2005 has already sprawled across
the country.

Table no 1

NAME OF THE INDUSTRY RELIABLE CASHEW COMPANY PRIVATE LIMITED

KARKI TQ: HONNAVAR DISTRICT : UTTARA

LOCATION OF THE INDUSTRY
KANNADA

EMPLOYEES IN INDUSTRY 360+10

DEPARTMENT IN INDUSTRY
9

NAME OF THE DEPARTMENT PROCUREMENT >WAREHOUSE > STEAMING >

CUTTING > BORMA >PEELING >GRADING>
PACKING > DISPATCH
EMPLOYEES IN CUTTING
DEPARTMENT 200

EMPLOYEES IN PEELING
DEPARTMENT 15

EMPLOYEES IN SEPARATION
DEPARTMENT 80

EMPLOYEES IN GRADING
65
DEPARTENT

4
 1. RELIABLE CASHEW COMPANY KARKI
2. RELIABLE CASHEW COMPANY DARESHWAR
3. RELIABLE CASHEW COMPANY KOLALAGIRI
BRANCH (UDUPI)
4. RELIABLE CASHEW SHAKTHINAGAR
5. RELIABLE CASHEW COMPANY BANTWAL
6. RELIABLE CASHEW COMPANY BAIKAMPADI
WORKERS -DAILY WAGES
STRUCTURE OF SALARY
STAFF-MONTHLY SALARY

Logo of the Reliable Cashew Pvt ltd

2.2 BACK GROUND

Reliable Cashew Company Private Limited was started in 2005 with registered office
in Chennai and head office at Mangalore. The main promoter Mr. Gowthaman is a
Charted accountant by profession.

RCC has completed 12 years of successful operations growing at a rate of 30% year on
year and recorded profits all the 12 years and paid taxes. The company enjoys a
premium in the domestic and International markets for its commitment to quality and
consistency. It has a prestigious range of end customers in both domestic and
international markets.

Our current production capacity is about 100000 Mt. per annum and this helps to meet
all committed delivery in the market with zero default. The company has sufficient
volume of production in all grades of kernels and all its factories are ISO approved with
all food safety certificates.

The brand Reliable cashew is known for its product quality and customer satisfaction.
The company is a worldwide cashew nut exporter. The brand which laid its foundation
back in 2005 has already sprawled across the country.

5
Reliable cashew industry has following features

MODERN MACHINERY Reliable Cashews has the latest Automatic Machinery for
Cutting, Peeling, Colour sorting, Infra-red heating, Packing and Strapping.

PRODUCTION CAPACITY The Company is one of the top five processors of

cashew in volume in India; it has sufficient volume of production in all grades of kernels
to meet the requirements of the customers.

QUALITY ASSURANCE

The Company is accredited with ISO 22000:2005 in all its factories and packing
centers. Latest Infra-red heating machinery has been installed.

PROMPT DELIVERY

The Company enjoys a premium in the domestic and international markets for its
commitments to quality, consistency and zero default in delivery.

2.3 NATURE OF THE BUSINESS

Reliable Cashew Company private ltd. Carries its business ,in the coastal part of
Karnataka including 2 processing units in North canara and 4 in south canara . The
Raw cashews are mainly imported from African country’s like Ghana,
Ivory,Tanzania,Musambi etc. as the companies processing capacity is higher in
comparison to the supply of cashew nuts from local vendors.

The factories in India are mainly involved in processing and packaging of cashew nuts
are to be sold in India and also exported to foreign countries.

6
2.4 VISION AND MISSION

VISION

To become the leading trendsetters in the world market.

MISION

To exceed customers, expectations with assured consistent quality and prompt delivery.

QUALITY POLICY

The brand RELIABLE CASHEW is known for its product quality and customer
satisfaction. To its core, the brand always stood in setting high quality standards, right
from its inception.

POLICIES OF RELIABLE CASHEW COMPANY PVT LTD

Table no 2
FOOD SAFETY POLICY:

We, RELIABLE CASHEW COMPANY(PVT) LTD, are committed to maintain the highest quality
standard of cashew kernels conforming with both statutory and regulatory requirement and
with mutually agreed food safety requirement of our customer

We are also committed to communicate, implement and Maintain our food safety policy and
food safety issues is respect of cashew kernels at all levels and review to achieve continual
improvement by setting measurable objective.

7
cx

Table No 3
ALLERGENS POLICY:

The following food allergens are prohibited inside the processing area,

 Peanut & peanut product

 Tree nuts
 Fish
 Shell fish
 Egg & egg product
 Dairy & dairy product
 Wheat & wheat product
 Soya bean & soya bean based product

Table no 4

GLASS POLICY:

Our documented glass policy includes

 Dentification of glass fitting inevery area

 Shatter proofing glass partitions in critical areas by
transparent sun film
 Prohibition of carrying glass items in production,
production store and packaging area.
 Laid down cleaning procedure in case of breakage.

8
2.5 WORK FLOW MODEL

Chart no 1

Incoming
Quality

Cooling
Cooking Sizing and Cleaning

Humidification
Shelling/ Cutting Bormah

Manual Peeling Segregation Machine

Peeling

Grading Quality
Separation
Checking

Packing Fumigation / IR
heating

9
 1. SIZER AND CLEANING

Raw Nut Calibrator is used to clean and sort raw cashew nuts based on 5 different
sizes. Sizing is needed for efficient shelling and further processes. Mechanical shelling
requires sizing to maximum efficiency of the set up.

Raw Cashew Nuts are fed into a feeding hopper which is a temporary storage of raw
cashew nuts, keeping a buffer to feed the machine as per the requirement. It feeds the
nuts into the bucket elevator automatically. An automatically inclined bucket elevator
is provided for easy transportation of nuts to the drums. It is fabricated to conform to
the international food grade equipment standards. Calibration and Cleaning of nuts
further takes place in the cylindrical drums.

10
2. STEAMING
Steaming process involves steaming of raw cashew nuts(raw nuts are previously dried
and stored in warehouse) in a boiler. The cooking time depends on the condition of raw
nuts. After steaming, the nuts are air-cured by spreading them on the floor. This enables
the shell to harden, thus making it fit enough for cutting in the cutting machine. Cooking
of raw cashew nuts is 7 to 8 minutes (varies from origin to origin.

3. STEAMING COOKER

Cooker is used for the steaming Raw cashew nuts. As the shell of the cashew nut is
Leathery, it is necessary for the raw nuts to be steamed before the kernels Can be
extracted from them. During the process of steam Cashew kernel is extracted from the
shell, which , at the same times, is made brittle and easier to break.

11
 4. SHELLING/CUTTING:

Purpose of shelling is to extract Kernel out of shell with minimum breakage. There are
two methods of shelling. One is Manual shelling using cutting machines. Another one
is Mechanical shelling.

The hardened cashew nuts after steaming and cooling are cut by cutting machines into
two halves. The blades of the machine are adjusted in such a manner that they do not
cut the kernels inside. After cutting, the kernels would be still adhering on to one half
of the broken shell and these broken shells are then scooped and taken out.

12
5. BORMAH / DRYING

The skin on cashew is dried in an oven at low heat for a few hours to loosen the skin.
Bomah machine is a hot chamber which is used to heat the shelled kernels to remove
the moisture. The heating is done by using the steam generated by the boiler.

Drying process is needed because the shelled kernels have a pink skin covering which
has to be removed before the kernels are made edible. This skin attached to the kernels
and can only be loosened after the kernels have been dried and moisture in the peel or
husk is removed by contact with hot air. After the kernels are kept for several hours in
a hot room or a drying chamber, they lose much of their moisture and shrink
slightly.Thereafter the skin is removed with ease.

The borma consists of :

 Two sets of heating coils which is used to heat the chamber.

 One set consist of 32 heating coils, so total 64 heating coils.
 A black solenoid valve to sense the heat inside the chamber and if it exceeds the
required tempeture a siren is alarmed.
 A control panel to set the required temperature.
 A digital display which helps in monitoring the temperature of bormah.
 4 gates for the escape of heat after the bormah stopped
 Steam lines, to supply steam from boiler to the heater coils.

13
6. HUMIDIFICATION:

Objective: To increase the moisture of kernels to 3.5 to 4% to reduce breakages in

subsequent processes

Methods:

1. Controlled Environment with high Rh. This is achieved by using

foggers/ mist generator
2. Leaving overnight in a closed room with high Rh. Kernels are left
overnight in a room fitted with ceiling fan and water sump on the floor
which helps in increasing the humidity of the room
3. Some players have found success by using air conditioning method

COOLING MACHINE:

RELIABLE CASHEW COMPANY has a one cooling room of cashew nuts.

Capacity: 16 trolleys in 1 time
Cooling process is conducted by after BORMA ( steam drying process). It helps to
remove the peel of cashew nuts. it reduce the moisture of the nuts. Approximately
24 hours depending on origin nuts.

14
7. MACHINE PEELING:

Objective: To remove the taste from the kernels with minimum piece generation

Methods: Process Output:

 Manual Peeling: Industry standard 3 lab / bag

 Mechanical

 Peeling:

 Pieces

o Rocket and Air peeler combination

o Air Peelers (Garlic Peelers)

Mechanical Peeling Typically give 50% peeled kernels, 27% Unpeeled Kernels ,15%
pieces and 8% testa

Key Value Driver

The cashew kernels after bormah is conditioned and ready for peeling . Peeling of the
Testa is done manually and by machine. The kernels are graded in to wholes, broken
and rejections at this stage.

15
8. SEGREGATION:
Objective: To segregate mechanically peeled kernels
Cashew kernels are separated according to their color, grades and appearance. There
are more than 13 grades of cashews. Under segregation process following are the
output:

WHOLES PIECES
1. White wholes 1. Split
2. Scorched wholes 2. Large white piece
3. Scorched wholes second 3. Scorched piece second
4. Puzhukuthu wholes 4. Oil piece
5. Oil wholes 5. Partially peeled pieces
6. Spotted wholes 6. Fully peeled pieces
7. Partially peeled wholes 7. Jumbo buts
8. Peeling rejects 8. Rejection and Husk

9. MANUAL PEELING

The skin of each cashew is removed by hand and the cashew simultaneously visually
graded according to quality.

Objective: To manually peeled partially peeled or unpeeled kernels.

16
10. MACHINE PEELING:

Objective: To remove the taste from the kernels with minimum piece generation

Methods: Process Output:

 Manual Peeling: Industry standard 3 lab / bag

 Mechanical

 Peeling:

 Pieces

o Rocket and Air peeler combination

o Air Peelers (Garlic Peelers)

Mechanical Peeling Typically give 50% peeled kernels, 27% Unpeeled Kernels ,15%
pieces and 8% testa

Key Value Driver

17
The cashew kernels after bormah is conditioned and ready for peeling . Peeling of the
Testa is done manually and by machine. The kernels are graded in to wholes, broken
and rejections at this stage.
.
11. GRADING:

Main objective of grading is to grade the kernels as per standards. The whole cashew
kernels are individually graded by hand according to count per pound. There are four
color grades, four styles of grades on the kernel and six sizes. Now a days grading
machines are used for grading.

After the separation nuts are graded as per the standards. It is necessary to grade the
peeled kernels in order to identify the quality of each nuts. RELIABLE CASHEW
COMPANY uses manual grading process. It grades the nut through the help of workers.
Grading differentiates the cashew in different quality and it also helps in fixing the
prices of cashew nuts.

18
Cashew kernels obtained after processing the raw cashew nuts, are divided into
different grades depending on the form and size and the grade specifications as followed
by the cashew export promotion council of India (CEPCI).

GRADING SPECIFICATION

Kernels of this grade should be completely free from infestation, insect damage, mould
rancidity, adhering testa and objectionable extraneous matter. Scraped and partially
shriveled kernels are also permitted, provided such scrapping/ shriveling does not
affect the characteristic shape of the kernel.

12. QUALITY CHECKING:

The cashews of each grade are inspected according to the present quality standards for
the grade.Quality checking helps to know the qualities of different graded cashew
nuts.The cashew kernels are then put through a set of quality assurance measures like
heating in an oven, metal detection, dust aspiration and hand picking conveyor.
RELIABLE CASHEW COMPANY always in the pursuit of perfection in quality and
hygiene. Reliable cashew company has two branch. One branch is in Karki, Honnavara
and Another branch is in Dhareshwar, Kumta.

19
13. FUMIGATION

Fumigation is method of pest control that completely fills an area with gaseous
pesticides or fumigants to suffocate or poison the pest within. This method also affects
the structure itself, affecting pest that inhabit the physical structure, such as woodborers
and dry wood termites.

14. PACKING

Packing is the last process of the production of the cashew kernels .Cashew kernels in
bulk are packed in tin of net weight of 10 kg .The filled tins are vacumised and filled
with carbon oxide gas and sealed by lead and tin mixture paste and labeled by the
company name(RELIABLE CASHEW) and grade name .

20
2.6 PRODUCT OR SERVICE PROFILE

Reliable cashew company have a variety of retail cashew products of white wholes and
pieces of 30gms, 50gms, 100gms, 250gms, 500gms and 1000gms.There are value
added products of Pepper, Chilly and Masala flavours.

21
CATEGORIES OF PRODUCT BASED ON QUALITY

2.7 OWNERSHIP PATTERN

RELIABLE CASHEW COMPANY PRIVATE LIMITED was started in 2005 with

registered office in Chennai and Head office at Mangalore.

The main promoter of Reliable company is Mr. Gowthaman who is a chartered

accountant by profession.

COMPANY CATEGORY: Company Limited By Shares.

COMPANY SUB CATEGORY: Non-govt company

CLASS OF COMPANY: Private

Date of Incorporation: 21 November 2005

Directors: SIDDARTHAN GOWTHAMAN (04-FEB-2019)

GOWTHAMAN RAMANATHAN (21-NOV-2005)

MURUGAN RAMANATHAN (25-FEB-2015)

Ownership pattern at Reliable Cashew Company Pvt. Ltd at Karki, in Honnavar:

MANAGER: Mr. Edward D’costa.

22
ACCUNTANT: Mr. RamanathShanbhag.

ENGINEER: Mr. Ganesh Naik

SUPERVISORS: 1. Retail Shop: BhaskarPatagar.

2. Cutting department: Rajesh Hegde.

3. Bormah and Peeling: Masti Gouda.
4. Separation department: Geeta Bhandari
5. Grading department: Satish Naik.

Workers: There are totally 360+10 workers in Reliable Cashew Industry in Karki
Branch Honnavar, Uttara Kannada.

2.8 : ACHIEVEMENTS AND AWARDS:

Halal India certificate awarded to Reliable cashew company private limited for its
cashew and almonds.

23
2.9 : FUTURE GROWTH AND PROSPECTUS:

The study tries to Assess the overall profile of the Reliable Cashew company Private
limited particularly in terms of production and exports .

1.Expansion of business

2.Exporting to Foreign Country

3. The company will focus more on technological innovation.

4. The company will continue to give quality product and services to its customers

5.It will gain new customer by exporting their products to new market.

6. Creates more employment opportunities to rural people by establishing more

branches in rural areas.

24
 CHAPTER: 3

McKinsey’s Model and Porters Five Force Model

3.1 : McKINSEY’S 7’S MODEL WITH SPECIAL REFERENCE TO

ORGANISATION

UNDER STUDY

Is a tool that analyzes firm’s organizational design by looking at 7 key internal

elements: strategy, structure, systems, shared values, style, staff and skills, in order
toidentify if they are effectively aligned and allow organization to achieve its
objectives.
The Mckinsey 7S Framework is a management model developed by well
knownbusiness consultant Robert H. Waterman and Tom Peters in the 1980’s. this was
a strategic vision for groups to include business, business units and teams. They
published their 7’s model in article ‘ structure is not organisation’ ‘ the art of Japanese
Management’ and ‘ in search of excellence’. This model contains 7 elements and they
are: strategy, structure, system, shared values, style, staff, and skills. And this 7’s
distinguished into hard S’s and soft S’s.
Chart no 2

Strategy

Skills Structure

Shared
Values
Style Systems

Staff

25
STRATEGY:

Strategy is an organization plan for building and maintaining a competitive advantage

over its competitors. Strategy explains the purpose of the business and the way the
organization seeks to enhance its competitive advantage.Companysummarised their
strategy briefly with a view to solve the consumer problem. It seeks continuous
opportunities which represents technological advantage.

Reliable company main strategy is market penetration and market development.

Reliable cashew company main strategy is to produce good quality cashew products to
customers and developing rural area by providing employement to rural youths.
Reliable company is set up his branch in Karki and Dhareshwar, which is a rural area
in Honnavar. They adopted safety welfare strategies in order to strengthen the
organization environment and to protect the workers from hazards. Reliable Cashew
Company also adopted waste elimination strategy in the organization.

STYLE

Style indicates the style of leadership adopted. I t tells about the cultural style of the
organization and how the key managers behave in achieving oraganisation goals.
Overall it indicates typical behavior pattern of key groups, such as managers and other
professionals.

In Reliable cashew company managers and professionals have created friendly

environment, where all the workers can freely interact with higher authority and they
are completing all the works well in time. In Reliable cashew company autocratic as
well as democratic leadership style is followed to take decision and to control activities.
In some situation manager seeks opinions of the employee in increasing production
with high quality standards and also in improving working environment.

Reliable Cashew Company is a pvt ltd company where staffs are treated as family
members. In Reliable cashew company most of the workers are women and company
adopts good leadership style to deal with women workers and they shows respect for
every women workers and they take care of health and wellbeing of women workers.

26
STRUCTURE:
ORGANISATION STRUCTURE OF RELIABLE CASHEW COMPANY PVT LTD

Chart no 3

MANAGING
DIRECTOR

DGM

HR Processing Finance Sales

Manager Manager manager

Supervisors
Accountant Engineer

Mechanic

Assistant Workers
Assistant Supervisors
Mechanic

Structure indicates how your company is organized. That is, how departments and
teams are structured, including who reports to whom. Structure shows how
organizations are divided into different department and also shows how tasks are
divided and integrated. The basic organization structure of the company departments,
reporting lines, area of expertise and responsibility.
The entire workforce work towards achieving the organization’s vision and mission.
27
Organization use some mix of pyramid, matrix or network type of structure format.

In RELIABLE CASHEW COMPANY, in Karki Branch the activities of the firm are
divided into 5 department’s namely roasting, cutting, grind, peeling and grading. All
the five departments are operated by the well-equipped machinery and some parts by
the hand work by the trained workers. All the system of the firm are coordinative in a
systematic manner.

1. Branch manager: Branch manager in Karki branch is Mr. EDWARD D

COSTA. He has to take the decision relating to the production and quality
enhancement, adoption of new technique and machineries, sales and distribution
of the product. Branch manager supervises and controls whole working process
of the organization.
2. Accountant: Accountant work in reliable company is to enter the invoice and
dispatch details of RCN received and sale of product and also maintain the wage
and salary records of workers
3. Engineer: Engineer work is to look after the workings of machines and give
guidance to the mechanics in maintaining machines.
4. Supervisor: There are totally few departments in this branch. They are roasting,
cutting, grind, peeling and grading. Each department has its own supervisor and
each supervisor will supervise the work and activities of their respective
departments. Each department’s supervisor is well experienced and they
properly guide the workers in their working environment.
5. Workers or HR: There are totally 450 workers in this branch. The work is
divided on shift basis. Shift work is applicable only for cutting department and
boiling department. In cutting department ladies workers will work and they
have a 2 shift. One shift is from 8:30 am to 5:30 pm and another shift starts from
7:00 pm - 4:00 am. Boiling work is done by men workers and they have 3 shift.
They are 8:30 am - 5:30 pm ,5:00 am- 1:00 am and 1:00 am -9:00am. Reliable
company provides EF and ESI scheme facility for the well being of the workers.

28
SYSTEM:
System refers to the daily activities and procedures that staff use to get the job done.
System is an important element of business. It is the idea about the companies buying
system, management system and accounting practicing system.

System refers to the day to day process and procedure. Having effective system helps
to reduce redundancy and streaming process.

Purchase and Waste elimination System:

Reliable cashew company purchases raw cashew nuts from outside countries like IVC,
Ghana, Brazil, Vietnam etc. Before receiving RCN from container supervisor will
check the seal and documents. Shell are used in making oil and chemical and husk are
used Pan masala and Gutka.

Selling system: Reliable cashew company sells its cashew products to within and
outside countries. Normally Reliable company sells its products to Greece, Norway,
Vietnam, Nepal, Netherland, UAE, Germany, Turkey, and Japan.

Management system:The management of Reliable Cashew Company is more

democratic, people may interact with higher authority members to discuss the issue.
Company is providing excellent facility for the workers. If workers face any problem
Reliable company solve that problem immediately and they compensate workers if they
injured and they also provided van facility to workers. They also adopted the system of
PF and ESI for workers welfare.

Recruitment & Selection of employee: In the company recruitment procedure is

direct. Their recruitment process starts from the advertisements in the newspaper in
which they mention all requirement as well as venue & date of interview.

Empowerment: It is observed that the company follows centralized decision-making

process but In certain time employees are given power to speedup decision making
process to meet the changing needs of customer.

Performance appraisal: Organization follows 180 degree of performance appraisal. Where

HR manager will interact with each & every employee and matches with his objective &
Organization objective.

29
SKILLS:
The actual skills and competencies of the organizations employees. Skill means overall
organization capabilities and competencies. Skills are the capabilities of the staff within
the organization as whole. Skills is the employee capacity to carry on the business in
the organization to achieve the companies goal. Training and Development helps the
people to do their job effectively and efficiently.

Reliable cashew company pvt. Ltd gives more importance on Production with high
quality. This helps to maintain standard quality. In Reliable cashew company workers
are directly appointed by manager and they are given, On The Job training where they
used to get knowledge by working practically in the firm. As most of the workers are
women and their working capacity is very effective and efficient work.

Skilled workers: Reliable Cashew Company appoints skilled labour for maintaining
machines, for personal work and for maintaining books of accounts. Company appoints
a one engineer to maintain and supervise the machine work.

Semi-skilled and unskilled: Semiskilled workers are those who are working under the
skilled employees. All department workers come under semi skilled workers and
unskilled workers are those who are appointed to help the skilled and semi skilled
workers.

STAFF:

This element includes employees of the company and their general capabilities. Staff is
very important part in management. According to Waterman and his colleagues the
term “staff refers to the way of organization introduce young recruits into main of their
activities. Staff means human resource system which includes appraisal, training,
wages, and intangibles such as employee motivation, moral and attitude. Staff is the
workforce of the organization.\

Reliable cashew company gives salary to office workers at the end of every month as
per their position. It gives wages to daily workers and also gives wages on weekly basis.
In Reliable company in Karki branch Manager is the head one who takes decision and
Under manager supervisor and professionals will work. Under supervisor all daily and
weekly workers will work.

30
Number of employees Working:There are only 400 employees working in the organization
.Staff includes Orientation, Induction and Training and development .

Duties and Responsibilities of Staff:

1. Maintainance of machines.
2. To achieve maximum product for meeting the target during shift hours.
3. Do the work properly.
4. Follow the rules and regulation.
5. Assist management in taking decision.

Employee Scheme:

Company provides following benefits to its employee from which employee gets more
job satisfaction:

1. Bonus, Dearness Allowances, ESI etc.

2. Leave: Each and every employee gets leave facility like casual leave, sick leave,
weekly holiday, and Government holiday.
3. Uniform: Company provides uniform to every employee.
4. Food Facility: Company provides food facility to every employee.
5. Company provides Hand gloves, Cap, Mask etc to employees in order to protect
the employees from infection.

Shift Schedule of Workers:

1. For Men Worker: 8.30am to 5.30

5.00pm to 1.00am
1.00am to 9.00am

2. For Ladies Worker: 8.30am to 5.30 pm and 7.00pm to 4.00am

3. Grading and Separation: General shift- 8.30am to 5.30pm

4. Starting Time Of Company: 7.00am to 5.00pm

31
SHARED VALUES:
These are the core values of the organization, as shown in its corporate culture and
general work ethic. They were called ‘Super ordinate Goals’ when the model was first
developed. Reliable cashew company are ethical towards the corporate and also the
societal ways. The different company will have different core values. The company it
includes integrity and ethics ,corporate culture, Passion ,commitment etc.

Shared values are the fundamental values that are widely shared in the organization.
The values and beliefs of the company ultimately guides the employees towards valued
behavior. The company tries to satisfy employees , shareholders and customers. The
company takes valuable suggestions from the shop owners, whole sellers and from
other stakeholders. To maintain a good relation with the customer RELIABLE
COMPANY always meet their needs by providing quality products . RELIABLE
CASHEW COMPANY PVT LTD believes that management and employees are the
success of the business. So it gives much importance on employees suggestion and their
demand.

PORTERS FIVE FORCE MODEL

The realiable cashew company provides very unique services to its customers. It
supplies the high quality cashew product with a high level of convenience and
efficiency that can not be provided by any other industry or substitutes. Reliable
company pried themselves on the way treat their customer during delivering products.
The geographic scope of Reliable company Is at global level.

The five forces model is one way to answer the first basic question in strategic
management; “Why are some industries more attractive than others?”. This model
shows the five forces that shape industry competition; Threat of new entrants,
Bargaining power of buyers , Threat of substitutes, Bargaining power of suppliers, and
competitors. In order to analyze the reliable industry we have look at each of these
forces.

32
 Chart no 4

1. Bargaining Power of Buyers:

The reliable industry is made up of two group of buyers. One is individual buyer who
buys, product directly from the company. The buyers of reliable cashew company
includes Café Coffee Day, agro marketing , gold finch, the ocean pearls, haldiram’s ,
and bikanervala. Another type of buyer is in the form of online portals. Online portals
helps the customer to find the best quality products in their website. Buyers are often
demand lot. They want to buy the best offerings available by paying the minimum price
as possible. This put pressure on profitability of reliable company. Higher the
bargaining power lower is the profitability of company. There are low switching cost
between the firms because many people choose the product based on their need and
cost. Overall the bargaining power of buyers has an extremely medium threat in this
industry.

33
How Reliable, can tackle the bargaining power of buyers:

• By building a large base of customers.

• By rapidly innovating new products.

• New products will also reduce the defection of existing customers of Reliable to its
competitors.

2. Bargaining Power of Suppliers:

Next we look at the bargaining power of the suppliers. In this case major suppliers for
reliable cashew company are Ghana, Indonesia, Ivory cost, Tanzania, Mozambique,
Brazil , GB , Nigeria, Vietnam and India. This company can easily switch suppliers.
Most of the firms have medium as well as long term contract with their suppliers. Based
on these things bargaining power of suppliers has a low threat to the company. The
overall impact of higher supplier bargaining power is that it lowers the overall
profitability of cashew company products.

How Reliable, can tackle Bargaining Power of supplier:

• By building efficient supply chain with multiple suppliers.

• By having a good contact with different supplier, so that if one supplier increase price
than company can shift to another supplier.

3. Threat of New Entrants:

This is another major aspects of the five forces. This aspects has a medium threat for
the cashew industry . New entrants in cashew industry brings innovation, new ways of
doing things and put pressure on RELIABLE COMPANY. Through lowering prices,
reducing cost, and providing new value proposition to the customers Reliable company
can manage all these challenges and build effective barriers to safeguard its
competitive edge. For new entrants it is difficult to enter into the market because
existing firms have large cost advantage. This industry requires large amount of capital
for purchasing machineries. Without a strong customer base there will be little to no

34
profit in the first few years. Although there are high switching cost between the brands,
consumer tend to only choose known names. The prices of cashew products depends
on their quality. The time and money spend to solely open an cashew company is
enough to prevent most people from entering the industry.

How can Reliable, can tackle the Threat of New Entrants:

• Buy innovating new method of production.

• By building economies of scale so that it can lower the fixed cost per unit.

4. Threat of Substitutes:

After looking at the threat of entry it is important to consider the threat of substitutes.
This industry has a medium substitute risk level. When a new products meet the similar
needs of customer in different ways, industry profitability suffers. There are more
number of substitutes available in this industry. Following are the substitutes product
for cashew industry, they are pine nuts, almonds, walnut , hazelnuts, soaked sunflower
seeds etc. These substitutes reduces the profitability of the company.

How can Reliable, can tackle the threat of substitutes:

• By being service oriented rather than just product oriented.

• By understanding customer value and their core need.

• By increasing the switching cost for the customers.

5. Rivalry among existing players:

The last area of the five forces is the rivalry among existing players. The rivalry in the
cashew industry is more for many reasons. So the industry has more number of players.
There are more number of competitors for reliable cashew company. The following
are the existing competitors for this company and they are Vola Surendra Kamath son
cashew Ltd., Radhika Cashew, Shreedevi Cashew etc. The fixed cost are in the range
of medium to long term. Reliable cashew company operates in a competitive industry.

35
This makes it hard to leave the industry because they are probably in long term
agreements in order to stay in the business.

How can Reliable, can tackle Intense Rivalry:

• By building a sustainable differentiation.

• By building scale so that it can compete better.

• Collaborating with competitors.

36
 CHAPTER: 4

SWOT ANALYSIS

With SWOT analysis, you can evaluate the strength, weakness, opportunities and
threats identified in a cashew industry. The technique is based on the Stanford
university study from 1960’s which analysed data from 500 companies. The study
found 35% discrepancy between the companies objectives and what was the actually
implemented. Many employees didn’t even know why they , what they were doing.
SWOT was developed from these study in order to give clear understanding of the
company. Strength and Weakness are internal to the business and Opportunities and
Threats are external to the business.

A SWOT analysis is designed to facilitate a realist`ic, fact-based, data-driven look at

the strengths and weaknesses of an organization, its initiatives, or an industry. The
organization needs to keep the analysis accurate by avoiding pre-conceived beliefs or
gray areas and instead focusing on real-life contexts. Companies should use it as a guide
and not necessarily as a prescription.

SWOT analysis of Reliable Cashew Industry:

 STRENGTH;
 Convenient location of the Factory.
 Precious working environment.
 Easy availability of workers.
 Easy transportation.
 Infrastructure.
 The firm maintains good quality of product.
 Company has new machines to produce products.

37
 WEAKNESS:
 There is a lack of availability of well trained workers
 Failure of machinery.
 Lack of skilled labour.
 Long process.
 Canteen facility
 Land rent

 OPPORTUNITIES:
 There is a good climate in coastal area for producing the
cashew nuts.
 There is a great opportunities to install machineries by
availing subsidies from the government.
 Easy availability of workers from local area.
 Employment opportunity for rural women.
 Expand or increase the production per day because of
increasing demand.

 THREATS:
 Handling of workers.
 Labor union.
 Competitors.
 Price competition.
 Focus on short term.

38
 CHAPTER: 5

ANALYSIS OF FINANCIAL STATEMENT

1. Current Ratio :

Current ratio establishes the relationship between current assets and current
liabilities. It attempts to measure the ability of a firm to meet its current Obligation. In
Order to compute this ratio

The two basic components of this ratio are current assets and current liabilities.
Current asset normally means assets which can be easily converted into cash within
years’ time. The following table represents the components of current assets and current
liabilities in order to measure the current ratios.

Current Ratio:
Table no 5
Year Current Assets Current Liabilities Current Rati0
2018 224.72 258.29 0.87
2017 206.69 253.47 0.82
2016 187.69 237.99 0.79

39
 Chart no 5

Current Ratio
0.88
0.86
0.84
0.82
0.80 Current Ratio
0.78
0.76
0.74
2018 2017 2016

Interpretation:
According to the standard the current ratio of the firm should be 2:1, but the ratios of
the company are 0.79 in the initial year 2016. It tells the business cannot pay debts due
within one year from assets which it expects to turn into cash within the year. But in
2017 it was 0.82, it has gradually increased it indicates improvement in the financial
position of the company. In year 2018 it was 0.87.

2. Quick Ratio :

Quick ratio also termed as Acid Test or Liquid Ratio. It is supplementary to the current

40
ratio. The acid test ratio is a more severe and stringent test of a firm’s ability to pay its
short-term obligations as and when they become due. Quick ratio establishes the
relationship between the quick assets and current liabilities. Quick ratio can be
calculated by two basic components of quick assets and current liabilities.

Table no 6

Year Current Assets Current Liabilities Quick Rati0

2018 114.28 258.29 0.44
2017 94.80 253.47 0.37
2016 73.55 237.99 0.31

Chart NO 6

0.50
0.45
0.40
0.35
0.30
0.25 Quick Ratio
0.20
0.15
0.10
0.05

2018 2017 2016

Interpretation:

The traditi0nal rule 0f thumb f0r this rati0 has been 1:1. Anything bel0w this level
requires further analysis 0f receivables t0 understand h0w 0ften the c0mpany turns them
int0 cash. It may als0 indicate the c0mpany needs t0 establish a line 0f credit with a
financial instituti0n t0 ensure the c0mpany has access t0 cash when it needs t0 pay its
0bligati0ns. Theref0re, in the year 2016 is 0.31. In the year 2017 the rati0 is 0.37 but in
the year 2018 it has increased t0 0.44.

41
Asset Turn Over Ratio:

The asset turn0ver rati0 is h0w efficiently a c0mpany is using its assets. The turn0ver value
varies by industry. It is calculating by dividing net sales by t0tal assets. It is a rati00f
sales/turn0ver t0assets. In 0rder t0 c0mpute this rati0, the bel0w presented f0rmula is used.
Asset Turn Over Ratio

Table no 7

Year Net Sales T0tal Assets ATR

2018 325.20 253.92 1.28
2017 357.62 238.93 1.50
2016 339.28 201.61 1.68

Chart no 7

ATR
1.80
1.60
1.40
1.20
1.00
0.80 ATR
0.60
0.40
0.20
0.00
2018 2017 2016

Interpretation:

This rati0 measures the degree 0f efficiency by utilizing the fixed asset. Higher the
rati0, the better utilizati0n 0f fixed asset. In 0ther w0rds, it indicates h0w much rupees
0f investment in asset generate sales. Similarly, a l0w rati0 is n0t desirable. But t00
high a rati0 indicates that assets are utilized bey0nd their activity level. Year in the year
201 it is very high i.e. 1.68 times where as in the year 2017 it was 1.50 times. But in
the year 2018 it was 1.28 times.

42
Net Profit Ratio:

This is the Rati00f Net pr0fit t0 Net sales and is als0 expressed as a percentage. It
indicates the am0unt 0f the sales left f0r the shareh0lders after all c0sts and expenses
have been met. The higher the rati0, the greater will be pr0fitability and the higher the
return t0 the shareh0lders. 5% t0 10% may be c0nsidered the n0rmal. It is very useful
t00l t0 c0ntr0l the c0st 0f pr0ducti0n as well as t0 increase sales:

Net Profit Ratio:

Table no 8

Net pr0fit
Year Net pr0fit after tax Net Sales
rati0
2018 6.29 325.20 1.93%
2017 7.49 357.62 2.09%
2016 0.61 339.28 0.18%

Interpretation:

This Rati0 measures the 0verall efficiency 0f the management. Practically, it measures
the firm’s 0verall pr0fitability. Higher pr0fit earning capacity pr0tects a firm against
many financial hindrances and naturally, higher the rati0, the better will be the
pr0fitability. Thus in the year 2016, the firm reflects l0wer pr0fitability i.e. 0.18%. In
the year 2017 it sh0ws higher pr0fitability as 2.09%. And als0 in the year 2018 it sh0ws
alm0st c0nstant pr0fitability with 1.93%. Thus we can say that the firm is efficient
en0ugh t0 handle all its hindrances.

43
BALANCESHEET AS AT 31ST MARCH, 2016, 2017 AND 2018
Table no 9
Particular Mar 2018 Mar 2017 Mar 2016

EQUITIES AND LIABILITIES

SHAREHOLDERS FUNDS
Equity Share Capital 1.64 1.61 1.45
Total Share Capital 1.64 1.61 1.45
Revaluation Reserves - - 9.17
Reserves and Surplus 76.34 63.08 42.42
Total Reserves and Surplus 76.34 63.08 51.59
Money Received Against Share - 1.43 -
Warrants
Total Shareholders’ Funds 77.98 66.11 53.04
NON-CURRENT LIABILITES
Long Term Borrowings 5.49 3.85 7.07
Deferred Tax Liabilities [Net] 10.82 11.06 8.22
Long Term Provisions 1.43 1.85 1.29
Total Non-Current Liabilities 17.74 16.76 16.58
CURRENT LIABILITIES
Short Term Borrowings 179.68 167.81 187.66
Trade Payables 61.06 67.15 27.01
Other Current Liabilities 10.52 16.53 21.15
Short Term Provisions 7.03 1.98 2.17
Total Current Liabilities 258.29 253.47 237.99
Total Capital and Liabilities 354.02 336.34 307.62

ASSETS
NON-CURRENT ASSETS
Tangible Assets 100.10 97.41 106.01
Capital Work -In -Progress - 0.69 1.48
Fixed Assets 100.10 98.10 107.49

44
Non-Current Investments 22.11 20.52 2.02
Long Term Loans And Advances 5.05 11.04 10.42
Other Non -Current Assets 2.02 - -
Total Non-Current Assets 129.29 129.66 119.93
CURRENT ASSETS
Current Investments 0.02 0.01 0.01
Inventories 110.44 111.89 114.14
Trade Receivables 66.92 59.38 45.73
Cash and Cash Equivalents 11.86 9.43 8.80
Short Term Loans and Advances 2.80 13.57 13.03
Other Current Assets 32.70 12.39 5.97
Total Current Assets 224.72 206.69 187.69
Total Assets 354.02 336.34 307.62

PROFIT AND LOSS ACCOUNT

Table no 10
2018 2017 2016

INCOME
Revenue from Operation 318.37 332.61 328.78
[Gross]
Less: Excise/Service Tax/Other - 7.34 5.93
Levies
Revenue from Operation [Net] 318.37 325.27 322.85
Other Operating Revenues - 11.85 12.64
Total Operating Revenues 318.37 337.12 335.49
Other Income 6.83 20.50 3.79
Total Revenue 325.20 357.62 339.28
EXPENSES
Cost of Material Consumed 197.35 209.82 238.84
Purchase of Stock in Trade 5.41 17.29 13.31

45
Changes in Inventories Of FG , -0.91 3.96 -31.12
WIP And Stock in Trade
Employee Benefit Expenses 16.58 18.47 16.44

Finance Cost 17.84 22.70 19.70

Depreciation and Amortisation 9.59 9.17 8.01
Expenses
Other Expenses 71.85 63.29 68.61
Total Expenses 317.71 344.70 333.80

Profit/loss Before Exceptional 7.49 12.92 5.48

,Extra Ordinary Items and Tax
Profit /Loss Before Tax 7.49 12.92 5.48
Tax Expenses -Continued
Operation
Current Tax 1.21 2.75 1.51
Less:M A T Credit Entitlement - 0.38 -0.05
Deferred Tax - 2.84 3.30
Tax for Earlier Years - 0.22 -
Total Tax Expenses 1.21 5.43 4.86
Profit/Loss for The Period 6.29 7.49 0.61

46
 CHAPTER: 6

LEARNING EXPERIENCE:

The organization study at Reliable Cashew Industry at Karki has given me the
opportunity to gain valuable industry related experience that would allow me to expand
my career option. The organization study definitely broadens my mind. I gained the
work culture of Reliable by practical as well as through theoretically.

For the 4 weeks of my organization study from 05-07-2019 to 05-08-2019. I had a great
time in Reliable Cashew Company Pvt Ltd at Karki branch Honnavar, Uttara Kannada.
Mr. Edward de cost, who is the manager of Reliable company in this branch give me a
good guidance and also helps in knowing full aspect of cashew industry. Mr. Bhaskar
Patagar who is the supervisor in this industry has given me pin to pin information about
the industry. He given me all the information for preparation of my organization report.
He has shown me the working environment of the industry and shown all the process
through which the cashews are transferred from raw materials to the finished products.
Supervisors of all the departments help me in understanding the working process of
Reliable industry. The workers of the industry shown me how they work in the industry
and they also help us when we are doing work in that place. Machine maintainance
department workers shown me the working of modern machines. Mr. Ganesh who is
the engineer in this industry help me in knowing working of the industry. From day one
to the last day of my Inplant training the employees and the workers supported in each
and every step of my studies.

I am thankful to Mr. Edward de cost, Mr. Bhaskar Patagar, Mr. Ganesh, Mr Ramanath
and Mr. Masti gouda. For helping me in preparation of my organization report by
providing usefull information about this Reliable Cashew Company Pvt. Ltd

FINDINGS:

 Reliable Cashew Industry is one of the pioneering industry in North Kanara

as well as in South Karnataka and earned the name by its Reliable brand of
cashew kernals.
 All the workers employed are satisfied with the work.
 Management maintains a good relationship with its customers and workers.

47
  Company is having loyal and trustworthy workers.
 Company having a good societial recognition.

CONCLUSIONS:

Based on the information collected during inplant training and analysis of financial
data, it is concluded that there is stability in the growth as well as profitability of the
firm. Organisation is enjoying a good credit worthy position as its debtor are paying in
time and creditors are giving credit facility for longer period of time. The firm is
efficient enough to manage its assets and capital.

Reliable Cashew Company Pvt Ltd was started with intension of developing local area
and providing employment opportunities. Manager of the firm Mr. Edward de cost
succeeded in achieving primary goals of the firm. Reliable company achieve huge profit
from last 5 years. Manager is very good in taking decision and solving problems in
time.

Reliable Cashew Company is working on large scale. It purchases raw cashew nuts
from different countries and export cashew products to different parts of the world.
They are installing modern machineries in order to increase the production and also
the quality of the product.

Reliable Cashew Company has to undertake advertisement activities in local areas as

well as in urban areas. This helps to capture the market from local cashew industry to
international market. Demand for cashew industry is increasing day by day. So Reliable
Company must try to produce more cashew products with high quality.

SUGGESTIONS:

On the basis of discussion and interpretation of the data’s in foregone chapters, the
following few suggestions may be given to Reliable cashew company Pvt Ltd so as to
overcome the problem;

 To increase the storage capacity because raw cashews can be purchased in

a large quantity and stored. So that industry can run throughout the year.
 In order to increase the production, company must set target for workers
and also adapt modern machinery in production process.

48
 As cashew crop is seasonal and it is different for country to country and the
firm has to good relation with other country supplier in order to continue
the production throughout the year.
 Government should provide subsidy facility and govt should provide tax
concession to such industries.
 Company should build a friendly relation with its workers and society.

49
 CMR INSTITUTE OF TECHNOLOGY
DEPARTMENT OF MANAGEMENT STUDIES
WEEKLY PROGRESS REPORT

Subject : ORGANISATION STUDY (18MBAOS307)

Batch : 2018-2020

Weeks No : 4 weeks
Name of the Company : RELIABLE CASHEW COMPANY PVT LTD
Name of the Student : NIDHISHREE NAIK
USN Number : 1CY18MBA34

Sl.
DETAILS OF INTERNSHIP STUDY
No.
I was joined to the organization and had a basic introduction to the various departments
Week 1
in the organization.
I was being assigned in finance department and was absorving the activities and the
Week 2
books that they maintain.

Week 3 Learnt how the grading process is done.

Week 4 Learnt about the importance of labor workforce.

Signature of Student Signature of Internal Guide Signature of The External Guide

50
BIBLIOGRAPHY:

 Reports of RELIABLE CASHEW COMPANY.

 www.Google.com
 www.cashewindia.org
 www.reliablecashews.com

51