AN ORGANIZATIONAL STUDY NREPORT AV THOMAS & COMPANY COIMBATORE

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ORGANISATIONAL STUDY
IN
A.V.THOMAS & CO.LTD
CONSUMER PRODUCTS DIVISION (CPD)
OTHAKALMANDAPAM UNIT
COIMBATORE
Submitted to the NOORUL ISLAM UNIVERSITY, THUCKALAY,
NAGERCOIL, in partial fulfillment of the requirement for the award
of Master of Business Administration
Under the supervision of
Dr.Merlin Thanga Joy MBA, PHD
Assistant Professor in Management Studies
DEPARTMENT OF MANAGEMENT STUDIES
NOORUL ISLAM UNIVERSITY
THUCKALAY
2013-2015 Submitted By
JIBU AB

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CONTENTS
CONTENTS PAGE
NO
CHAPTER-1
1.1 Introduction
1.2Objective of study
1.3Scope of study
1.4Company profile
1.5Industry profile
5
6
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CHAPTER-2
2.1Organizational chart
2.2Departments Functions
 HR Department
 Production Department
 Quality Department
 Stores Department
 Security Department
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19-29
CHAPTER-3
3.1Product Profile
3.2Manpower strength of AVT
CPD
29
30
CHAPTER-4 Conclusion 31
Bibliography 31

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ACKNOWLEDGEMENT
I express my deep gratitude to Ms. Merlin Thanga Joy for giving me full time support
throughout the project session
I wish my sincere thanks to Mr. Ravi Shanker, Chief Executive Officer and Dr. Chacko
John, HR Manager, A.V.THOMAS & CO. LTD without whose guidance this project would have
been completed.
EXECUTIVE SUMMARY
My project work was done at A.V.THOMAS & CO. LTD, CONSUMER
PRODUCT DIVISION. It is one of the lending tea manufactures in India. The project work was
done for a period of one month the project entitled “Organisational study of A.V. THOMAS &
CO. LTD, Consumer Product Division”. The aim was to study about the organization & its
products, services and its functions.

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CHAPTER-1

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About AVT CPD – CONSUMER PRODUCTION DIVISION
AVT CPD was set up in the early 1989’s with a key objective of marketing branded
beverage products and spices in India. Over the year, the division has shown substantial growth
and is one of the largest selling tea and coffee brands in India.
There are three modern tea blending units along with packing facilities at
Othakalmandapam and a coffee factory in Vellaikinnar in Coimbatore, and two packing factories
at Kochi. These factories are equipped with the state of art blending and packing merchandising
AVT is also involved in the teabags manufacturing. All these factories are of GMP (Good
Manufacturing Practices) Standards. The three units of AVT CPD (5 Tea Units & 1 Coffee Unit)
in Tamil Nadu and Kerala were certified with ISO 22000 by BUREAU VERTIAS, which is an
international certification body.
AVT CPD has a well-equipped laboratory also at their Coimbatore to ensure all the
statutory checks international standards. Facility has been to be carried out as per FSSAI and PFA
standards.
1.1 INTRODUCTION
1. An Organizational study encompasses the study of organizations from multiple view
points, methods, and levels of analysis.
2. To understand the structure and functioning of the organization.
3. To the study the different departments and their functions.
4. To relate theoretical understanding of management theory in real life settings.
5. To understand the reason behind the success of the firm in this competitive environment

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1.2 OBJECTIVE OF THE STUDY
The main objective of the project is to make an overall study of the organisational framework
of AVT-CPD and the various functions and interdependence of different departments . The other
objectives includes:
1. To have a clear knowledge about what an organisation is.
2. To understand the correct researchers and development acquired.
3. To understand about the various products and promotions of AVT.
4. To understand about the various departments of the organisation and their functions.
1.3 SCOPE OF THE STUDY
An Organisation is a planned coordination of number of peoples and their activities for the
achievement of some specific goals through division of labour and hierarchy of authority.
An Organisational study involves the study of the structure and functioning of the
departments organizing or organisation is the most important functions of management. Almost
all the organisation are different but they have some common features. All are collection of people
linked together by formal and informal relationships. They have hierarchical orders that are
engaged in corperative activities and they all have identical boundaries. So the study of people in
the organisation is very important for future managers. Structure of an orgaisation is very much
important for its functioning and growth.

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1.4 COMPANY PROFILE
History Of The Organisation
The company is started in 1925 by Alfred Vedam Thomaswith its registered office at
Alleppy,Kerala. Cultivating cardamom and rubber near Vandiperiyar was the first tea estate AV
Thomas expanded their plantation activities and also ventured into diversified range of other
business activities.
In 1940 AVT accqired Neelamalai Tea & Coffee and in 1943 Sheveroy Estates.ltd. In, 1970's
the group diversified into trade and manufacture of leather goods and natural caffeine. Later, with
a commitment for growth through diversification, the group has ventured into plant biotechnology,
commodity exports, Logistics, marketing of agro and tea products and edible oil processing
emphasis on "Quality & Productivity" has always been the watched . Today AVT group has a
turnover of Rs.2000 crores and employing over 1200 peoples. AVT brand is well established in
South India and they bring significant foreign exchange of the country.
The AVT laid importance not just on growth. It always ensured as smooth blend of fast
business.growth and high quality standards. This commitment has own many awards for the group.
. Pasuparai and Maralaroo are th best premium gardens of south india.
. First company to start culture on commercial terms.
. Recieved the Tea Board Award for the highest prices in the south india.
. Recieved the Tea Board Award for the highest yielding estate in south india.
AVT CPD is equipped with state of art manufacturing facilities. AVT Dust Tea is the fifth
largest tea in india . It is situvated in the industrial belt area . AVT CPD has been successful in
tying up with large format stores to supply commodities for store brands.

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"Acceptability, Availability and Affordability" is the philosophy of AVT.
The amenties included:
1. The world class tea processing facilities catering to the needs of various segments.
2. Excellent quality systems as per the global standards.
3. AVT producing as per the BIS (Bureau Of Indian Standards)
4. An ISO 22000 company.
Othakalmandapam unit is one of the AVT-CPD major plant located 20 kms from
coimbatore city on the main highway to Pollachi. Othakalmandapam unit is constructed in a 4
acres of land in a build up area of 17500 sq.fts surrounded with beautiful scenery . The unit is
equipped with a state of art manufacturing facilities

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A V THOMAS GROUP OF COMPANIES
The AVT group into seven companies each company is seperately managed as seprate profile
centres. The main companies are:
1. AVT Natural Products
AVT Natural Products the world largest oleorism pigment manufacturer and exporter with large
volume exports of food processing and cosmetic industries in Mexico and USA.
2. AVT McCormick Ingredients.Ltd
In a strategic joint venture with MC Cormick & Co Inc. USA, AVT distributes a wide variety of
spices and curry powder for the international market.
3. AVT Agro Chemical
AVT manufactures and markets pesticides under direct license fromo Bayer AG,
Germany, with a distribution network of over 5000 outlets spread across India.
4. AVT Leathers
The company manufactures a wide range of leather products, catering to license requirements of
vaious international brands including Ralph Lauren & Pierre Cardin.
5. AVT Biotech
AVT Biotech is the leading exporting of tissue culture plants and operates the largest
biotechnology facility in India, producing 8 million plants for the Indian market and 6.5 million
for the International market annually.
6.AVT Rubber
Over 2 million kilograms of rubber is produced annually to AVT's rubber plantatons. AVT Rubber
Products various grades like centrifuged latex, crumb rubber and dipped rubber goods.

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7. AVT Consumer Products Division
AVT Consumer Products Division markets some of South Indias favourite brand of tea. AVT also
has a significant presence in the international market for various bulks, commoditized teas,
cardmom brands like Raihana & Shahi are already being exported and AVT is poised to enter the
coffee export market soon. on the anvil are plans to diversify into value added services like vending
machines and a chain of tea parlours. primary amoung the CPD's strenght in the ability to innovate
constanly predetermined the needs of the consumer.

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PRODUCTS/BRANDS OF AVT
1. AVT Premium (India’s Strongest Tea)
AVT superior dust tea, AVT Premium is specially blended for the discerning strong
tea lovers. AVT Premium is a blend of carefully picked teas from the finest medium and high
grown gardens of South India. And the best renewed gardens of North India. The result is a color,
strong dark brew with unique pungency, which can take milk very well.
AVT Premium is packed in poly punchers for economy and longer shelf life and is an
available in multi sizes of 25 Gms, 100Gms, 250Gms, 500Gms & One Kilo. A small pack which
makes 4 cups of tea is also sold in India for Rs1. Attractive jute bags of 5 kilos/ is also available
for large consumers like hotels, restaurants, canteens & establishments
2. AVT Rajah- For These Who Like It Strong & Rich
AVT Rajah is the brand from AVT; This CTC dust tea offers richer and stronger cups of
tea maintaining its basic character of aroma and freshness with a few roaring boils, the brew obtain
a rich wonderful golden and full bodied flavor aimed at the popular consumer segment and
competitively priced, AVT Rajah brings in a distinctive difference to give that extra punch of tea

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lovers packed in attractive cartons. AVT Rajah is available in 25 Gms, 50 Gms, 100 Gms, & 500
Gms pack sizes.
3. AVT Premium Tea Bags- India’s Strongest Tea
A Strong dark brew with a unique pungent flavor, AVT Premium is a favorite primarily
for its strong taste and consistency. For convenience seekers, AVT Premium is also available in
tea bags.
4. AVT Assam- The Authentic Taste Of Assam
AVT brings in the authentic taste of Assam with AVT Assam finest quality dust teas.
Blended and packed from specially picked and processed tea leaves in the choicest gardens of
Assam, these teas are well known for their strength, color and full bodied flavor. AVT Assam is a
singularly unmatched blend that provides extra cup page with the distinct inherent qualities that
only a pure Assam can best now
AVT Assam is picked in attractive cartons offering convince to the retailers for
shelf storage and facilitating added shelf because of the added protection of the inner inside and
sealed cartons. AVT Assam is available in pack sizes of 100 Gms, 250gms, 500gms and one kilo.
Convenient soft packs of 25 gms and 50 gms are also available and offer the consumer a good
value of nominal price.

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5. AVT Darbari-Asli Chai Ka Asli Swad
The perfect blended from Assam’s finest gardens, Darbari is AVT’s popular leaf tea.
It’s heavily flavor, unique taste and competitively pricing make darbari Attractive brand. AVT
Darbari is packed in full laminated poly pouches and is available in various sizes of 25gms, 50gms,
100gms and 500gms.
6. AVT Supreme-The Perfect Blends of India’s Finest Teas
AVT Supreme is the top of the line brand on the AVT brand wagon, available in the CTC
form. AVT Supreme is positioned as “The Perfect Blend of India’s Finest Tea”. Blended from
the teas carefully chosen from the finest gardens of Assam. This brew captures the superior flavor,
aroma and fine texture of the truly mellow Assam teas. The full bodied liquor offers a bright golden
color and rich taste, which makes AVT Supreme a product of the classic art of blending.
AVT Supreme is packed in foil laminated poly pouches and in
various sizes of 25gms, 50gms, 100gms and 500gms. This is reusable and offer extra value to the
housewives. The tea tasters fresh and free strain in these air tight container and important attribute,
since tea is particularly hygroscopic in nature.

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7. Bulk Tea
AVT CPD exports various grades of fine black tea in both dust and lead to Russia, The
Middle East and Europe. This division has contributed consistently and significantly to the overall
growth of the company in spite of the stringent quality and satisfaction measures that the export
market imposes.
8. Coffee
AVT has recently launched AVT Premium Coffee an instant success thanks to AVT’s
ability to understand the preference of coffee drinkers. A 60:40 blend of coffee and chicory, AVT
Premium provides a strong flavor that resembles traditional filter coffee.
Spices
AVT CPD exports fine quality, branded cardamom in large quantities to the Middle
Eastern countries. Raihana and Shahi, both of which are immensely popular brands in the Middle
East Market, is from the AVT CPD stable.

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10. Vending Machines
AVT Vending machines provide consumers an opportunity to have their favorite tea
and coffee outside of home. For a vendor, AVT vending machines offer more than 30% sales
margin per cup for a one time investment with no additional manpower requirements and
extremely low maintaince costs. The company vending machine services team is in the process of
setting up tamper proof single chambered and doubled chambered vending machines that can
dispense premixes of the AVT Premium range of tea and coffee

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1.5 INDUSTRY PROFILE
The history of tea is long and complex, spreading across multiple cultures over the span of
thousands of years. Tea likely originated in China during the Shang dynasty as a medicinal drink.
An early credible record of tea drinking dates to the 3rd century AD, in a medical text written by
Hua Tuo. Tea was first introduced to Portuguese priests and merchants in China during the 16th
century. Drinking tea became popular in Britain during the 17th century. The British introduced
tea production, as well as tea consumption, to India, in order to compete with the Chinese
monopoly on tea. It is also believed that the black tea was accidentally discovered during sea
transportation of green tea from Asia to Europe, causing the green tea to get soaked or wet during
the journey causing some sort of fermentation, and later being dried out. The Chinese have
consumed tea for thousands of years. People of the Han Dynasty used tea as medicine (though the
first use of tea as a stimulant is unknown). China is considered to have the earliest records of tea
consumption, with records dating back to the 10th century BC.Another early credible record of tea
drinking dates to the 3rd century AD, in a medical text by Hua Tuo, who stated that "to drink bitter
t'u constantly makes one think better." Another early reference to tea is found in a letter written by
the Chin Dynasty general Liu Kun.
Laozi (ca. 600-517 BC), the classical Chinese philosopher, described tea as "the froth of the liquid
jade" and named it an indispensable ingredient to the elixir of life.[citation needed] Legend has it
that master Lao was saddened by society's moral decay and, sensing that the end of the dynasty
was near, he journeyed westward to the unsettled territories, never to be seen again. While passing
along the nation's border, he encountered and was offered tea by a customs inspector named Yin
Hsi. Yin Hsi encouraged him to compile his teachings into a single book so that future generations
might benefit from his wisdom. This then became known as the Dao De Jing, a collection of Laozi's
sayings.

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In 59 BC, Wang Bao wrote the first known book with instructions on buying and preparing tea.
In 220 AD, famed physician and surgeon Hua Tuo wrote Shin Lun, in which he describes tea's
ability to improve mental functions.
During the Sui Dynasty (589-618 AD) tea was introduced to Japan by Buddhist monks.

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CHAPTER-2

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2.1 ORGANIZATION CHART

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2.2 DEPARTMENT AND ITS FUNCTIONS
Human Resources Department
HR Functions
1. Recruiting and Staffing.
2. Training and Development.
3. Staff Benefits.
4. Wages and Increments.
5. Leave Rules.
6. General Administration.
7. Working Hours and Attendance Rules.
8. Time Office Functions.
9. Medical Policy.
10. Welfare Facilities
11. House Keeping and Good Manufacturing Services.
12. Record Maintenance.
13. Waste Disposals.

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STEPS INVOLVED IN RECRUITMENT PROCESS
Man Power Requisition Form
Sourcing
Short listing
Interviews & Relation Process
Offers & Appointments
Orientation & Induction

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Man Power Requisition Form
The recruitment process starts with generating an interest filling up the
details in the man power requisition form available with HR department. The filled man power
requisition form to be routed through HR department and the Head HR should go through the
requisition form with the view to explore the possibilities of identifying any resources initially
available for consideration. If such a resources for lateral/ upward sift shall note down the details
of the same in the form and discuss with chief executive director for final approval.
Sourcing
After receiving the manpower requisition by the HR department. They will start working
on the recruitment by searching relevant applications from the data bank available in HR
department. If no suitable application is available the HR department, shall consider any one of
the following options,
a) Release an advertisement / postings in web portals, based on the nature of the vacancies.
b) Identify a recruitment consultant from the list maintained from the HR and give the
requirement.
After obtaining the approval from the Chief Executive Director regarding the
sources for recruitment HR shall initiate actions and go ahead with the processes. After getting the
response through reliable sources head HR will take the parameters into consideration and prepare
a tabulation form and will be sent to chief executive director and to the concerned HOD for the
short listing.
Short - Listing
The Head Of The Department / the operational persons to see the applications and
sought it the best suited lot and sent back to HR department along with Chief Executive Director’s
remarks for organizing the interviews.

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Interview &Selection Process
a) The Interview will be fixed by the HR department according to the availability of
the candidates and panel of the interviewer.
b) Official call letter were sent to the short listed candidates to attend the interview.
c) The Panel for the initial round of interview would comprise of operational Heads
along with the HR Head.
d) The Interview is done in two phases :
1. It included the fillings up the company applications forms and
administrating.
2. It includes, the formal question sessions.
e) The final short listed candidates will be seen to take up for a final decision.
Offers & Appointment
A. For selected candidate the offer letter along with the salary break up could be issued. The
selected candidate has to clearly give the indications on the date of joining. During the time
of joining a formal appointment order along with job description will be issued of the
candidate.
B. During the time of joining the candidate has to submit his/her Medical Examination report
given by an Authorized Medical Practitioner and self-attested photocopies of certificates
and testimonials.
C. Mainly the company would select the candidate in the following categories,
a) Direct absorption.
b) Probation (normally for office staff 6 months & Sales Staff 1 Year)
c) Contract (normally the contract period will be 1 Year)
d) Trainees.
D. The minimum qualification criteria for different positions shall be follows,

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I. Staff category positions (e.g. Drivers, office boy etc., Undergraduate)
II. Executive and management position Graduate/ Post Graduates.
Orientation & Induction
 A brief introduction of the company.
 A brief introduction of the group company.
 A brief introduction on the activities present in the locations, branded handled,
plans for the future, company policy and procedures organizational structure
and manpower strength.
 A brief introduction about the services rules including work culture,
attendance, leave, travel, transfer of transfer of service, working hours, lunch
break, weakly holidays, mode of payment of salary, welfare and benefit
entitlements, disciplines and procedures, dress code, submission of reports
and recognitions and etc.
Training & Development
Identification of training needs through performance appraisal and discussions with the
concerned HOD’s. Training plan is prepared for the consecutive year. The training plan should
include the following.
a) Induction programs the new comers of the company.
b) Training programs that could be conducted “In-House”.
c) Nominations for training programs conducted by reputed institutions.
Training budget for the HR department for would be approved by the Chief Executive Director
the HR department will chart out training programs for the identified staff in different departments.

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The programs for the dates planned in the training calendar. HR department would the relevant
training consultants to conduct the in-house programs.
In the production units, the workers involved in production and packaging were in-house training
by the unit-in-charge and supervisors concerned on Hygiene, Plant cleanliness and etc.
PRODUCTION DEPARTMENT
Production Process
Place
AVT has state of the art manufacturing facilities in Coimbatore and Kochi. All the teas are
blending using vertical tower blenders, which are fitted with rare earth magnets and sorting
machines to remove any stray irons filings and other extraneous matter (like jute strings) from the
teas.
Product
The Blended tea are packed with state of art packing machinery installed in units.
All necessary care is taken to see that products meet PFA norms. Prior to the actual blending
process, a representative table bulk of the blend order is made and is test along with the standard
so as to ensure consistency in the end product.
AVT has modern laboratory that is fitted with the latest testing
equipments in the Coimbatore facility. All their brands are put through statutory checks required
by the PFA Act.

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Process
Once the blended sheets are generated the samples pertaining to the teas used are drawn
from the warehouses. Representative table bulks of the blends are prepared. These table bulks are
then tested against the various standards and competition. The volumes are recorded and only those
blends that match up to the standards are passed for blending. Finally blend sheets are issued to
the various blending units.

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Tea Blending Process

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QUALITY CONTROL DEPARTMENT
Quality Objectives Of AVT Products
1. Creation of AVT brands syonpymous with quality and food safety.
2. Continious improvement by total committed participation of all.
3. Satisfying the changing needs of customer for total satisfication and statutory
requirements.
4. Increase the performance level of suppliers.
5. Continually improve the effectiveness of quality and food safety system.
Quality Standards
The 4X Certification Proceedure
The Selection process: fine quality at no extra price.
Tea samples from auction centres across the country including samples from our own plantations
are brought to the AVT central tasting centre at Kochi. Here expert tea tasters follow the most
stringent quality parameters at screen all samples using the 4X system for a brandwise and region
specific selection process

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STORES DEPARTMENT
• Preparing an indent for next month depending upon the order.
• Raising of purchase order for the approved quality.
• Material required against purchasing order.
• Quality checking for all receiving materials.
• Quality approval.
• Issue of production on daily as per requirements.
• Maintaining proper stock records.
• Purchasing includes laminated pouches and rolls tissue paper for tea bags.
• The security makes records both inwards and outwards movements of goods.
• Vendor management and Evaluation.

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CHAPTER-3

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3.1 TEA PROFILE
Tea contributes slightly to our intakes of minerals, and it certainly help to replace lost fluids, but
the health interest in tea at the moment surrounds it’s proposed role in lowering the risk of
coronary heart disease.
Tea contains antioxidant substances called flavonoids. These have been
shown to help slow or inhibit the chemical reaction through to take place during the development
of coronary heart disease. S Sup Up! But remember the drinking water is still the best way of
rehydrating our bodies. So for every cup you have, try to drink a glass of water too.
3.2 Man PowerStrength of AVT CPD

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The Staffs is categorized into Office and Sales.
Office Staffs = 81
Sales Staffs = 251
Total Staffs = 332
Office Staffs is was in their different offices located all over south.
Sales Staffs are spread throughout South India markets operated in states of Kerala, Tamil
Nadu, Andhra Pradesh, and Karnataka & Orissa.

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CHAPTER-4

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4.1 CONCLUSION
The organizational study conducted in AVT CPD enabled me to familiarize myself with
the corporate world.
I was given good exposure in production, Quality analysis and HR functions and also got
chance to see the entire production process inside the plant.
BIBILOGRAPHY
References
1. Sharma K.R & Gupta K Shashi “Business Management”, Ludhiana Kalyani Publishers.
2. Chabra N.V “Human Resources Management”.
Magazines
1. Business World.
2. Business Outlook.
3. Times of India.
4. Economic Times.
Websites
www.avtcpd.com

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