Anand oil

1
Anand regional co-operative growers union limited
A project REPORT
on Anand oil
ARCOGUL
Prepared by:
Bhatt Ritesh 09
Kevalramani Vivek 46
Ansari Imran 01
Dadhi Furkan 26
Guided by :
Prof : dr. Jayesh Jani
2012-13
SUBMITTED TO
Faculty of business Administration

2
Dharmsinh Desai University, Nadiad.
Preface
Since the few years, the business world has completely changed. There has
a rapid development taken place in India changing the past independence period
industrialization in the country which has made India one of the industrial powers
of the world. Revaluation in the field of commerce and business has changed many
lives in India. The avenues of economic liberalization and globalization have
invited certain change and business enterprises are now able to face challenges at
competition from multinationals
Practical knowledge is the essential for facing all direct circumstances.
Only in industrial training tells us make deeply how we should apply doctrines in
real life because industrial visit is over all practical information about on industry.
According to George R. Terry, “Management is a distinct process
consisting of planning, organizing, actuating and controlling, performed to
determine and accomplished the objectives by the use of the people and resources.”
The success of any company or business is upon its management.
The training in industry is very helpful to students of management because
it helps to get better prospects and understanding the working condition of various
industries.
We are glad to present report based on the ANAND OIL
We have tried our level best to prepare this project report.

3
ACKNOWLEDGEMENT
The successful completion of this report wouldn’t have been
support of our professor, some of group member and some lavish a
person who helps me indirectly.
We would also forward our gratitude towards our respected Dean
Sir Shri G.S.Shah who gave us opportunity to expose us in the training
of company.
We like to give marvelous thanks to our professor Mr. J.C.Jani for
his constant efforts towards us in preparing our report. we owe special
thanks to the company for giving the permission for training in his
company.
Thanks
Ritesh bhatt 09
Kevalramani vivek 46
Imran ansari 01
Furkan dadhi 26
Faculty of Business Administration
Desai U

4
INDEX
No. Particulars Page
no.
1 Preface 2
2 Acknowledgement 3
3 index 4
4 Company profile
History
Structure
General informatin
7
5 Production management
Products
Production process
13
6 Marketing management
Target market
Product
 Packaging
 Product mix
 Branding
 Plc
Pricing
Promotion
 Sales promotion
 Advertising
Distribution
 Chennal
 Segmentation
Research
Competitors
conclusion
21
7 Finance management
Ratio
Analysis
conclusion
54
8 Hr management 78

5
recruitment
policy
promotion
motivation
performance appraisal
9 Agricultural marketing services 86
10 swot 89
11 Findings & suggestion 93
12 coclusion 96
13 bibliography 98
14 photography 100

7
HISTRY AND DEVELOPMENT
ARCOGUL was the dist co-operation which started in 1969 by the
farmer of the kheda f direction of Shri. Ravjibhai was lived in Baroda
established the ginning and pressing society was to by the cottonseed and
produced cotton at main product. They are started in produce the cottonseed
oil name "Anand" cottonseed oil.
First time 1003 the co-operative marketed the refined cottonseed oil
which become very population. As time passed the gown of nut seed and
mustards because very high. So in 1988 the Anand Taluka co-operative
ginning and pressing society converted in Anand regional co-operative oilseed
union limited. The co-operative established in village are and it covered
25000 pariliers of farmers. Now, it expand the operation area ARCOGUL
management and employee arcades body the continuously improve to the
meet the challenging needs of its owners and provide quality product and
provides its consumers and keep them happy.
Future that everyone take responsibility to achieve this ensuring that their
activities get with the environment ARCOGUL increased its objectives to the
seven district of Anand, Kheda, Panchmahal and Dahod.
Development of the ARCOGUL department on big oilseed co-operative
societies with a membership of 25000 farmers covering 739 villages. In an
addition the union made available to these societies seeds. Fertilizer oil etc. To
meet the challenging needs of its members. As a matter of fact it adopted the
Anand model of co-operative where agriculture produced combine together to
companies themselves in to corporative owned and controlled by them which
respond and to the needs of the farmer the union tolerates all
actionsnecessary to meet the heads of its members and continue to improve
upon them.

9
GENERAL INFORMATION
 INTRODUTION:-
1. Name of the company:
Anand regional co-operative oil seed growers
union limited. (ARCOGUL)
2. Address : “ARCOGUL”
National highway no.8,
Chikodra crossing,
Chikhodra-388320
Gujarat-India
3. E-mail ID : info@anand.in
4. Phone No : 02692241223
5. Fax no : 02692241207
6. Marketing division : 02692253026
7. Web-Site : www.anandoil.com
8. Mission :
Mission is nothing but objective of ARCOGUL.
To provide all agricultural input and allied
services to its entire shareholder stakeholder.
And second is to provide better returns to
farmer. As they are working for betterment of
farmer.
9. Year of establishment :

10
ARCOGUL was established in the year
1969
10. Form of organisation :
ARCOGUL is “co-operative sector”
11. Total area occupied :
ARCOGUL has occupied 23 across Acres.
12. Bankers :
State bank of India
State bank of Baroda
State bank of Saurashtra
UTI bank
Bank of Punjab.
13. Plant : Shri. K. C. Supakar.
14. Industrial licensee no :
Oil-943 (83) dated: 9-4-1983
Oil-114(44) dated: 30-3-1984
15.Board of directors
Vipulbhai kantibhai patel chairman
Parshottamdas maganbhai parmar vice chairman
Haribhai nathabhai patel
Jayantibhai chalubhai rathva
Hasmukhbhai ravjibhai patel
Chaturbhai lallubhai patel
Parshottambhai manibhai patel
Ishwarbhai ambalal patel

11
Rameshbhbai javebhai patel
i.m.purohit Registrar, Anand
kirti manek NDDB
jitendrakumar c patel incharge managing director
ripanbhai c patel Bank , Nadiad
likvidetar Grofed repress…..
Business philosophy:-
The business philosophy of ARCOGUL is to support agricultural farmer,
those who are producing something and don’t have proper market to sale, to
save them from Exploitation
Size of the unit
ARCOGUL indicates the power of the unit is co-operative sector.
The size of the unit is measured in terms of employee operations no of
employees size of investment output and production sales share capital
resource and surplus and net assets at the unit realise this ARCOGUL is one of
the large scale co-operative sector.
Co-operative sector is a form of organization where the person
irrespective of costs goods and religions voluntarily associate together as
human beings on the basic of at equity for the promotion for common
economic interest.
Plant capacity:-
Plant : capacity (perday)
Refinery : 100M.T
Water epriaent Plant : 350KShift

12
Time keeping system
In this co-operative sector the time from computerised and attendance method.
There are various approaches to the time keeping.
1. Worker gate pass
2. Vehicle gate pass
3. Travelling allowance bill
In this co-operative sector normal working time is 10.00 am to 6.00p.m
and the co-wants into total three shifts are as under:
First shifts: 8.00 to 4.00
Sec shifts: 4.00 to 12.00
Third shifts: 12.00 to 8.00
Lunch timing of this sector are for plant staff 12.00 to 12.30 and for office
staff 1.00 to 2.00

14
PRODUCT RANGE
Brand name :
Anand Kiran
Product range :
product 15kg teen 5lt jar 1lt bottle 1lt pouch
Cotton oil    
Mustered oil    
Sun flower oil    
Soya bean oil    
Grond nuts    

15
Production information:
The production promotion of a business is connected with the creation of a product
of services requite to satisfy customer needs wants and desired production will be
concern to two purposes.
1. It must operate customer’s satisfaction and timing of delivery
2. It must operate and economical and efficient manners, become cost of
production is critical factors.
1. Name of the product:
The main product of the unit is “ANAND COTTONSEED OIL” and
some other products are as under.
1) Cottonseed product.
2) Groundnut product
3) Mustered product
4) Soyabeen product
There oil product are sales by different brand name as under.
1) Anand cottonseed oil
2) Kiran double filters groundnut oil
3) Sohana mustered oil
2. Machinery and plant capacity:
Plants : capacity (per day)
Refinery : 100M.T
Water spirant : plant 350: K/Shift
3.Raw Materials:
The union get from village of surrounding area and which state generally
they collect the raw- material from.

16
4. Transportation facility for raw material:
This co-operative unit transport the raw material and finished product
by trades.
5. Inventory management:
Inventory market is the heart of this unit. They have separate
inventory and storage department. They receive materials from outside and
maintain their own receive instruments for each item.
1) Annul register
2) Material note
3) Material receipts
Now all transportation is done by the computer at every department.
They send order to accounts office purchase materials according the
requirements for that thy also keep note.
1) All subentries made in matter file.
2) they prepared monthly of issue register
3) Monthly inward register
4) Monthly purchase register
5) Monthly report of consumption

17
PRODUCTION PROCESS
1.Cotton refined oil
2. soya bean oil

18
3. mustered oil
4. ground nut oil

19
Refinery:
In this section plant all soup stock is separated from the oil. The after the oil
is filtered. The oil is known as crushed oil. This oil utilised for the production
of vegetable ghee.
Further the washed oil is refined in equipment known as the bachalro
and the oil is once again filtered then it order to remove the party acid across
is put in deodorising vessel under high temperature. The plant remove all the
forty add. The oil is once again filtered and vitamin A, B and k12 are added
above process it is known as cotton seed double refined oil.
Acid oil plant:
This section comprises of acid storage tanks. The capacity of acid oil
plant is 5MT/DAYS
Water efficient plant:
In the plant 100MT/DAYS homogenous efficient is with an acid in a primary
fund mixed which bride oil on the surface which is normally separated the
acidified water is multiplied in the discharge water is nutria and free from oil
as well as particular which can be used for irrigation purpose. This is being
done as per the raid down standard by pollution control board to make the
treated water free for irrigation.
Research and development:
In this co-operative sector they have no separate research and
development but production quality checked in quality control department.
Quality control department:
There is quality control officers who are see the quality of the
product and also take cake about quality of product. They are different they are:
 Moisture
 Colour
 Free Cathy acid

20
 Flash point
 Could test
 Custer oil test
Packing department:
ARCOGUL has separate packing department at its own products. They do
job would at NDDB of packing of “DHARA” double filtered oil.

22
Marketing department
1. Introduction:
The marketing department of ARCOGUL is very important for the entire
department because it is the case for all works the marketing manager is
Mr.Paresh Upadhyay.
The main marketing functions are as follows and are classified in three
categories..
1. Involving Owenership Transfer
2. Concentration – buying, assenbliey
3. Distribution –selling
-> Involving physical distribution :
(a)Transport
(b)storage
->facilitating
Standardisation
Broading
Packing
Salesmanship
Advertising
Sales promotion
Persurnce reserch
Ride bearing

23
Market research..
Type of marketing:
1) loose marketing
2) bulk marketing
3) Institutional marketing
4) consumer packs marketing
1]Loose marking
ARCOGUL makes loose sales by seeling oil in tanks.It manufactures
and market cottonseed oil kiran ground nut mustered oil and sohana oil. The
area offices and the distrabutors. The distributors get a major of 3% of the
retailers ground 9% all transaction are on cash and carry basies only no credit
is entertained.
2] Bulk marketing:
Bulk marketing is in the form of 15kg tins and sold under two
difference broad. Anand is marketed into allotting. Hammers quality of oil is
the same except diff a prices due to quality difference of the tins.
The present policy at ARCOGUL enable on oil dealers to place an
order with the company directly on that the appointed brokers to procure the
required brokers to procure the required quantity .Suppler are made cash
basis but it is observed that the distributor and traders offer credit to the
retailers.
3] Institutional marketing:
The union can explore the opportunity of Insotosionamy
marketing possible on a contract basis.

24
4] Consumer packs marketing:
Consumer packs includes 500ml pouch.1lr.pouch and bottle 5ltr
jars and 15ltrs.The customer’s services division calked after the consumers
packs marketing under the guidance at the M.D
TARGET MARKET

25
Target market
The target market means any targeted market to whom you want to sell your
goods.
The target market of ARCOGUL are seven district of Gujarat, which are-
>kheda, anand, nadiad, baruch, panchmahal, dahod.
On the bases of segmentation, the firm realised the opportunities open to it for
that it has to make comparative study of various market segments which is
known as Target Market.
The Target Market can be evalute on:
1) Size and growth of Market segments.
2) Structural attractiveness of the segments.
3) Ends and Means of the Company.
As the ARCOGUL produce the Edible Oil, which is necessary for the all class
and level of peoples. So here for the Company size, growth structural
attractiveness etc of segments are not questions.
ARCOGUL produce Groundnut Oil, Cottonseed Oil, Sunflower Oil, Corn Oil. So
here many Lower income group people bought cotton seed oil and Higher
income group people bought Groundnut oil.
Now the problem for ARCOGUL is Ends and Means of firm. As per the
production capacity of ARCOGUL it has mainly targeted seven districts of the
Gujarat State, which are Anand, Panchmahal, Dahod, Bharuch, Baroda, Kheda
and Nadiad.
The product of ARCOGUL is easily available in all above districts.

26
Advertising
The American marketing Association has defined advertising as “any paid
form of non-personal presentation and promotion of goods, services, or ideas
by an indentified sponsor”.
There are many types of media for advertising like,print media,Electric
media.outdoor media and Direct mail.The selected media by ARCOGUL is
Outdoor media.Their advertising objective is 40years and Quality.
The Advertising budget of ARCOGUL budget of ACOGUL is 30 lakhs p.a.
They done outdoor Advertising in 6 to 7 states of Gujarat.
Acts applicable to ACOGUL’S marketing activities:-
1. Prevention of food (PFA).
2. Weight and measure Act.
3. Minimum Wage Act.
4. MRTP.
size of the unit
ARCOGUL indicates the power of the unit is co-operative sector. The size of
the unit is measured in terms of employee operations no of employees size of
investment output and production sales share capital resource and surplus
and net assets at the unit realise this ARCOGUL is one of the large scale co-
operative sector.
Co-operative sector is a form of organization where the person irrespective of
costs goods and religions voluntarily associate together as human beings on
the basic of at equity for the promotion or formance of common economic
interest.

27
PRODUCT
RODUCTS:
Product is anything that can be offered to market for attention acquisition
consumption or uses. It not only includes physical objects but also includes
personalities, places, ideas or organisations.Product is also knows as
commodity, things, goods, item , material, physical object and article.
Product is the key element in the market offering. The customer will
judge the offering product by three basic elements.
 product feeless
 Quality services mix
 price opportunity
A quality product from house of co-operative that has dedicated to the
customer’s needs for more than 3 decides. Delighting customers through
excellence in quality system ensuring 100% purity of our products and better
services. Adopting eco-friendly process and operations for safety of customers
and environment. Using modern sophisticaticated equipments and latest
technology in the process to achieve the best quality products for the
customers. Ensuring safety of the product at all the levels by using modern
and fully automatic packing machines which is totally untouchesd by hands.
ARCOGUL products diff types of edible mils order diff brand names as
follows:

28
Anand Refined Anand health
cottonseed oil sunflower oil
Kiran Double filtered Anand Refined
Refined Groundnut corn oil
Cottonseed the only thing in telibia, from which maximum by –
products can be gained. In cottonseed processing mainly five by-products are
as follow.
(i)Cotton linters
(ii)hulls
(iii)cottonseeds De-oiled cake(khor)
(iv)oil and
(v)soap stock
 fertiliser:

29
The ARCOGUL buy fertiliser from the fertiliser companies and then sells
it directly the farmers or co-operative. The main objective is to provide best
products at reasonable price fertiliser cost are GGNFC GSFC IFFCO etc.
 production planning:
The points which are considered by society at the time of product planning
are:
1. Production capacity
2. Crop season
3. Grode and types of demand by a customer
Raw materials
The Raw materials are very important for any product. The union
get Raw Materials from village of surrounding area and which state generally
they collect the raw material from there.
Transportation facility for Raw materials
This co-operative unit transport the raw material and finished product
by trades.
Production process
The entire process has been divided into mainly four section as follow:
1.cottonseed pre-processing plant
2.oil mill
3.solvent extraction plant
4.Refinery
The detail process is as follow:

30
1.cottonseed pre-processing plant:-
First section is cottonseed pre-processing plant. In this section,
cottonseeds are cleaned and their cottons were collected. Afterwards, linters
are removed from cleaned cottonseed and collected. There linters are
classified into two-type: first type of linters is big in proportion and another
type of linters, which are finer and collecter in second cut. It is called second
cut linters. This second type of linters are used in vast proportion to make
various type of thing such as high quality papers, Artificial silk, currency note,
Abcorber dent cotton, Rayan , Methyl cellulose, Nitro cellulose gum cotton,
bullent of riffles, various type of plastisizers as well.
After collecting cotton-linters, seeds, and cover leaf are separated
by DECORTICATOR . seeds are used for oil manufacturing and cover leafs are
usually used as animal feeds.
2.oil mill:-
Section second oil mill, where it results into oil by pressing seeds with
Expeller.Even the De-oiled cake, which left during the process , contains 7 to 8
% oil. This de-oiled cake is called Expeiler De-oiled cake.So in this section De-
oiled cake as well as oil are produces, which then are taken to refinery for
retification(distillation).
3.Solvent Extraction plant:-
Third section is solvent Extraction plant, where oil extraction is carried out
from De-oiled cake during this process, Heczin (on type of petrol) is sprinkled
upon De-oiled cake, which extracts oil from de-oiled cake.
Then Heczin-petrol being give high temperature, get transferred into
vapour, nad then it is to freeze.It results into the from of petrol once.The
remaining crud oil (solvent Extraction oil) is taken to refinery for its
distillation.
4.Refinery:-

31
Fourth section is Refinery.The oil, form oil mill plant as well as solvent plant
gathered here,in this section to be refind.First of all in this plant,oil which is to
be processed,is mingled with liquid of caustic.Then oil and soap
stock(sediments) are separated by sharpals machinery.Afterwards, it is taken
for filtration.
Thus, the prepared oil is called “washed oil”. This washed oil is directly
used to prepare “vanaspati ghee”. To processed.In the first phase to this
process, the oil is processed with two elements –“ Fullers Earth and Activated
carbon” in equipment named Blicher to remove its colour.Then, the oil is
taken for filtering once again ,to make it colourless it is processed in
deodorizer.
Presently this process is done by vacuum to increase the
temperature of oil and remove the colour.After then, it is to be freezed in
order to freeze the oil,it is passed through heat exchange.Then two vitamins-
vitamin A and D are added into the oils. Ultimately which from of oil , we get
through the whole procedure is known as “cottonseed Double Refined oil”.
This cottonseed oil, prepared by the organisation under the brand name
of “ANAND” has been very population in entire Gujarat.
process of Groundnut oil:-
For Groundnut processing first groundnut are taken for cleaning
process with machinery.Then removing husk,c orns are crushed in oil mil.
After then oil and De-oiled cake are separated in solvent plant in order
to get oil. Even in this process, the same process carried out as before to get oil
remaining in De-oiled cake as well D.O.C (oil extracted De-oiled cake)
process of soya been oil:-
In the processing of soya been, the First process is to clean
soya been in machine and the process of removing husk. This husk part of
soya been is used for animal feeding. By scpecrator machine known as
(raker): both seeds and husk are separated. The seeds Further steamed to

32
make them soft, them after by Flekar machines its thin flex are generated
which is taken further to solvent Extraction plant, where oil are separated as
mentioned above. During process of soya been seeds; we get husks De-oiled
cake (khor) as well as oil.
Production Promotion:-
The production promotion of a business is connected with the creation
of a product of service require to satisfy customer needs wants and desired
production will be concer to two purses.
1.It must operate customers satisfaction and timing of delivery
2.It must operate and economical and efficient manner, become cost of
production is critical factors.
ProductionMix
Production mix is complete assortment of products offered by the company
for sales, within the product items that are closely related in terms of
functioning, in similar uses, are mostly sold to similar uses, are groups,
marketed thought same given price range.
WIDTH
Cottonseed Ground nut Corn Sunflower
Oil Oil Oil Oil
15litr. 15kg 15litr
15kg 15litr
5litr. 5litr
1litr. 1litr

33
As we can see in the product mix of ARCOGUAL there is Width, Depth and
Length. In width of product mix there is 4 types of OIL of ARCOGUAL that are
produce by ARCOGUAL.As seen in Width now we can see the Depth that
there are different Brand Names of OIL Of ARCOGUAL. In the different oil
there are different types of brand names that are available for ARCOGUAL. In
different brand the different weights are also there. There are 4 different
weights of product and have different prices.
PRODUCT LINE.
Product Line Is a group that are closely related because they function similar
manner and are sold to some similar groups of customer in market through
the same type of output or sell within given price range.
ARCOGUAL also have a product line. This shows the product width, product
depth, and product length of ARCOGUAL. This is explain in detail.
PRODUCT WIDTH
Product Width refers to the number of different line of the firm carries.The
Width of the ARCOGUAL is Different types of Oil. There are 4 types of oil
produced by the ARCOGUAL.
1. Anand Refind Cottonseed oil.
2. Kiran Double Refind Groundnut oil.
3. Kiran Refind Sunflower.
4. Kiran Mustard oil.
This are different types of oil produced by ARCOGUAL and the
width of ARCOGUAl.
PRODUCT DEPTH:-
The second stage of product mix is product depth. It refers to thenumber of
version offered to eaxh of the product. The ARCOGUAL produce the product of

34
different weight. This weight signifies that the different weight of the product
are of different price. The different weight of Oil of ARCOGUAL are shown in
Product Depth are as follows:-
PRODUCT LENGTH:-
In the product length it refers to the number of items or number of products.
ARCOGUAL carries with its Product Line. The ARCOGUAL Also has its product
Line. The ARCOGUAL gives different Brand Name And Different weight.
In product length the different brand and weight of oil of ARCOGUAL are as
follows:-

35
PACKAGING
Packaging in values designing and production the container are wrapper for a
product. The package includes a products primary container.It may also
include a secondary package that is thrown away where the product is about
to be used finally it can include a shipping and ship the product labelling
printed information appearing on are with the package is also part of
packaging.
Traditionally the primary function of the packing was to contain and protect
the product. In recent times how ever numberous factors have made packing
on important marking tool.
At last to sell the product the packing of product is necessary in recent times.
ARCOGUL has separate packing department of its own productions
that is Anand cottonseed oil. ‘KIRAN’ ground nut oil and SUHANA mustered
oil.
They do job work at NDDB of packing of DHARA double filtered oil
for that they have separate department of packing before packing the oil in
INS and tars they weight the empty tins and tars.
They have different department for oil packing the cost of each
machine of packing rs.125 core.
In one minute the machine packs 42 packets 1ltr.After packing oil.
The weight is checked and sealed. Each box contain 12packets of 1ltr the
prove machine cost Rs. 80.00 in this and tars also first the oil is poured and
the again is checked and sealed.

36
BRANDING
A name, term sign symbol or design or a combination of these intended to
identify the goods are services of one sellers or group of seller and to
differentiate. Then from those of competitors consumers view a brand as an
important part of a product and branding can add value to a product.
Branding helps buyers in many ways brand names helps consumers identify
product that might benefit them. Brands also fell the buyer something about
product quality buyers who always buy the same brand know that they will
get the same features, benefits and quality each time they buy. Branding also
give the seller several advantages.
ARCOGUAL also has a good brand recognition. The ARCOGUAL tries to
maintain the brand name in the market. The main key area of ARCOGUAL is
the LOCAL MARKET. The Local Market involves the GUJARAT State only. The
Gujarat customers are the well known to the Brand Name Of Oil That Is
ANAND AND KIRAN. This Two are the well known brand name of ARCOGUAL.
In GUJARAT in KHEDA District this Brand is very famous and most preferable
to customers. This brand is famous due to his quality. The quality of
ARCOGUAL provides is of high and best quality OIL. So thats why ARCOGUAL
has good brand image in local market. The ARCOGUAL also can be recognize
by his Symbol the symbol also has an brand image and good reputation..

37
Advantages of Branding:
1) To the Customers:
 Useful for easy Identification.
 The brand name assure the fixed price so that nobody can change
it.
2) To the Manufacturer:
 Save advertisement cost and make brand popular.
 It protects the interest of manufacturer.
3) To the Distributors:
 Popular brand will increase the sales volume.
 Branding reduce price flexibility.
 Special selling efforts need not to be undertaken.
Slogan:
As the products of ARCOGUL are mostly selling in seven districts
of Gujarat and ARCOGUL is Company of Gujarat it has selected slogan in Local
language GUJARATI; that is;
Meaning of that slogan is that we can fry our foods with less quantity of oil
and test of such fried food will prefer by everyone. In this slogan they has
mainly included price and test factors for Advertising...

38
Quality Control Department:
The final maintaining the standards of quality under the
presentation food. Adoteerxation the firm does not replace stock immediately
beery a co-operatives organisation it subjected to various rules and produces
and so public stocks are replaced only after the provide has been tested on the
and proved to be safe after detecting the problem and moving the same.
There is quality control officers who are see the quality of
the product and also take cake about quality of product.They are different
they are:
Colour
Moisture
Fre cothy acid
Flash point
Could test
Custer oil test

39
PRODUCT LIFE CYCLE
The length of product for cycle is governed by the rate of technical change the
rate of market acceptance and the case of competitive entry.
The life cycle of a product is divided into four parts: Introduction, Growth,
Maturity, and Decline
INTRODUCTION STAGE:-
The introduction stage starts when the product is first launched. In this stage
as compared to other stages the profits is negative or low because of low sales
and high distribution cost and promotional sales is there.
GROWTH STAGE:-

40
In this stage the product satisfy the market. It enters the stage in which sales
will increased climbing quickly. The ARCOGUAL has been in growth stage. At
this time the ARCOGUAL has increased their sales of there products and make
them available in all the districts of Gujarat.
Now the Arcogual has improved quality and has reached to high market and
has achieved its good reputated market of their products.
MATURITY STAGE:-
At some point the product sales growth will become slow due to its maturity,
it will known as the product has enter into a maturity stage.
The ARCOGUAL is at maturity stage. After the growth stage now the
ARCOGUAL has enter into a Maturity stage.
Now the sales of the Arcogual has low down to some extent. Because of its
high price the customee mostly prefer to low cost products which are offered
by the competitors.
As the company’s target market is middle-upper class people so now the
company is trying to decline the price to some extent. And day-by-day the
company has improved the quality of product so now people have started to
have products of ARCOGUAL. As now we can see that the company have
started to make high sales and has again achieved its market and the turnover
has also increased by 27crores from last year sales. So now the the company
ARCOGUAL will again will do good selling as it was in Growth stage.
DECLINE STAGE:-
In product life cycle if stage brings sadness in market, here product sale is
going down to decline and at very low level.

41
The ARCOGUAL has 2 times been in this decline stage. As the rival companies
enter into market the sales of the Arcogual decline as rival companies were
offering good quality and at lesser price than ARCOGUAL.
But after the decline the ARCOGUAL has again achieved its market and now it
is no more in Decline stage...

42
PRICING
Price is an important factor in the marketing. The society as based on co-
operative sectors so it has to follow the riles and regulation of co-operatives
and to obey government instruction so they do not go up competition price
ARCOGUAL fixes the price according to COST BASED PRICING POLICY.
COST BASED PRICING:-
In cost based pricing price is determined by adding the profit element on top
of cost of making the product. This involves the setting of price by adding a
fixed amount or percentage to the cost of making or buying the product.
Pricing decision must be Co-ordinate with the product, design, and
distribution. So the, ARCOGUAL uses this approach and keeps the price which
is most desirable for the product and competitive price from other
competative companies..
The society has adopted cost converted or cost plus pricing policy method.
They fix the price by following formula:
Wash oil rate(+)2% purchase tax and interest(+) Refinery charges
Rs725/tin and admshit-ratio cost packing and sales tax 4.8%(+)1.5
turnover for and transportation cost and commission and labour charges
(-) Refinery costs..
While administering the price of various type of oil follow factors are kept in
mind:
->cost of raw material
->offer cost of production
->Taxation rate and policy
->Profit margin of the Firm

43
The Brokers give the price of other competitors price and after it The
FINANCE OFFICER, MANAGING DIRECTOR, AND PURCHASE MANAGER sits
together and discuss the all the factors of expenses and than fixes the price.
Regularly the prices of Oil Of different weight are fixed at 12:00 in Afternoon
every day. If the price of other competitors is less than the finance officer
come to contact with M.D. and takes the decision slight decline of price.
By this the pricing of ARCOGUAL products are priced by this the ARCOGUAL
makes maximum profit and earns good profit in market..
Factors affecting pricing:
There are mainly two types of factors affecting pricing decisions which are;
1) Internal Factors
2) External Factors
3) The detailed list of these factors is as follow:
1] Internal Factors:-
> Marketing Objectives
> Marketing Mix Strategy
> Costs
> Organizational considerations
2] External factors:-
> The market and demand
> Competitors’ Costs, Prices, and Offers
> Other External Factors

44
PROMOTION
Sales promotion:
Sales promotion consists of a wide variety of promotion, a tool is the society
gives commission to their details co-operative society retailers and
consignment agent different retailed or purchase of bulk quantity.
For advance payment cash discount is given as.
ARCOGUAL is adopting the sales promotion activity which is increasing the
sales of the product of the ARCOGUAL. Sales promotion may be done through
samples, exibiton, display, etc. ARCOGUAL is also provide some schemes
which attract the customers for buying their product. The following are the
tools of Sales Promotion.
1. Trade sales promotion tools.
2. Consumer sales promotion tools.
The ARCOGUAL CO-OPERATIVE uses Trade Promotion Tools. As ARCOGUAL is
based on the Cost Based and Quality Based so the ARCOGUAL uses the Trade
Sales Promotion Tools.
Trade Promotion :-
Trade Promotion tools means any activity designed or done for increasing
sales and profitability of the goods.Arcogual has done trade promotion
according to the Quality of the product.
Commission:-
Commission means any paid to any person for some activities which is extra
than routine for the increase of work capacity of the dealers, retailers and
brokers.

45
ARCOGUAL provides the commission to the brokers where the brokers are the
person who brings the orders for the company and on every sale or every
order the ARCOGUAL provides the commission of 2% to Brokers. Brokers are
encourage and has good knowledge about the market so the are able to get the
maximum orders for the ARCOGUAL and earns good commission.
Discount:-
A straighten reduction in price on purchase during a started time period.
The Arcogual also provides the certain discount to their valuable customers.
On the bulk purchasing they provide certain % of discounts to the
distributers. So the distributors also earn good market and keeps the interest
on the company’s product.
Publicity:-
It involves the editorial space, as derived from paid space, in all media rent,
viewed or head a company’s customers or products, for marketing of sales
goods.The ARCOGUAL also provides the publicity expenses to the customers.
They provide banners and name of the distributors and arrange all the
expenses included in the publicity.
There are other types of promotion they are as follow:-
Advertising:
It is the one of the major tools company use to direct presented
communication to the target buyers and public.
The American marketing Association has defined advertising as “any paid
form of non-personal presentation and promotion of goods, services, or ideas
by an indentified There are many types of media for advertising like, print
media, Electric media. Outdoor media and Direct. The selected media by
ARCOGUL is Outdoor media.
Their advertising objective is 40years and Quality.The Advertising budget of

46
ARCOGUL budget of ACOGUL is 30 lakhs p.a.
They done outdoor Advertising in 6 to 7 states of Gujarat.
5MS Of the Advertising
1) Mission : What is the obj. of advertising ?
Any advertising obj. is task accomplished with a specific target advance during
a specific period.
ARCOGUL using only one type of advertising i.e. print media for the achieving
the obj. i.e. create potential consumer for their product.
2) Money : How much to spent on Advertising?
Most of the companies spent the money out of profit. ARCOGUL’s Budget for
advertising is 30Lakhs RS.
3) Message : What is message for company ?
Setting of advertising message is an important decision so the appeal should
be have three characteristic.
>Meaningful : The message should point out benefits that make
the product more desirable & investing to consumer
>Believable : Consumer must believe that the product will deliver
the promised benefits.
>Distinctive : The message should be tell how the product is
better than competitor’s product.

47
4) Media : What is media tell ?
For selecting advertising media major characteristics must be examined.
>Reachable : The media planner should use the media which can
easily reachable.
>Frequency : It is a measure of how many times the average
person in the target market is exposed to the message.
>Impact : The effect of the advertisment.
5) Measurement : How should the result is evaluated ?
The ARCOGUL should evaluate its advertising programmer in both the
respect i.e. communication effect & the advertising being effective for the sales
promotion. How much increases in sales take place because of advertising?
The selected media is most effectiveness or not ? After evaluating advertising
efficiency company should decide how it used another tools of sales
promotion.

48
DISTRIBUTION
Distribution channel:
It means setting a particular marketing action involved in the movement of
low of good and service from primary produces to altimeter consumers.
 Distribution channel
 Broker

Here The ARCOGUAL first of appoints the BROKERS. The brokers are the
person who makes the customer in the market. They try to make maximum
distributors in the Area allotted to them. Than The BROKERS gives the price of
different Compititors to ARCOGUAL and on that bases Arcogual fixes the price
and BROKERS take the order from Distributors and give to the Arcogual. Than
The distributors are Made in every area where the ARCOGUAL dies the
Business. The Distributors are fixed in every District and makes the maximum
selling in the market.

49
Than the distributors makes the wholeseller who sales the product of
Arcogual. The wholesellers sales the products to the RETAILERS who sale to
direct to the consumers. The wholeseller is the key point of consumers. The
wholeseller makes maximum sales in market tries to make huge profit and
sales the product of ARCOGUAL. The Wholesellers increase the sales of the
Arcogual.
MARKET SEGMENTATION
Market segmentation:
Market consuits of buyers and sellers which different a one or more
aspects.They may differ in their wants resources gographical locothissnes
buying attitude and buying practics.These variable can be used to segment
and market.market segmentation is the task of vreaking of total marketed also
in to the segment that has common characteristics.
Geogrphically the market segment with into follow:
 rural market
 urban market
Rural market->the products here are selled through consignment agents and
dealers.
Urban market->urban market consist of Anand, Baroda Nadiad Bharuch and
Borsad...
The ARCOGUAL is limited to the LOCAL MARKET ONLY. The ARCOGUAL
focuses more on GUJARAT STATE market only. The ANAND is the main
market of ARCOGUAL. The customers are very well known to this brand. The
ARCOGUAL is the only company which sells the High sell of Cottonseed oil.
The anand is the only Place where 70% of the selling is done.

50
The ARCOGUAL has good reputation in Gujarat state market. In Gujarat the
ARCOGUAL is well known brand in Edible oils. In Gujarat the KHEDA District
is the main market of the ARCOGUAL. The Kheda district includes
1. Nadiad
2. Mehmdavad
3. Kathlal
4. Kheda
5. Kapadvanj
This are the Kheda market where the ARCOGUAL IS More available and has
reputed selling. From Kheda District the Nadiad is one the leading city where
the high selling and there are well known customers in Nadidad. Arcogual
50% selling is done in Nadiad only.
Now The market is also there in few other regions of Gujarat also they are
1. Baroda
2. Surat
3. Jamnagar
4. Junagadh
5. Rajkot
6. Ankleshwar
7. Valsad

51
This are also regions where the ARCOGUAL also have good market. But this
are the OPEN Market. In this open market the selling is done as per the order.
When the order arises the ARCOGUAL fulfils the orders.
When season comes the OPEN MARKET customers places there orders and
stock the products. When times comes this area customers sell the Oil in high
price.
So the Arcogual is limited to LOCAL market only. They think to have sound
business in this area only. The ARCOGUAL doen’t want to expand business as
they are having sound business in Gujarat only.

52
MARKET RESEARCH
Market Research:
Marketing research is the systematic design to analyses collect and report the
data relevant to the related research of the company.
Marketing research Process:
Steps involve in this process are as follow:
1) Defining the problems and research objectives
2) Developing the research plan
3) Determining the specific information needs
4) Presenting the research plan
5) Implementing the research plan
6) Interpreting and Reporting the findings
In ARCOGUL the scope of marketing research started from the identification of
consumer satisfaction. In short ARCOGUL arrange the Market research
through following,
1) Consumer Research
2) Market Research
3) Sales Research
4) Advertising Research
5) Product Research
6) Distribution channel Research
7) Physical distribution Research
But the society has no separate department for marketing research. They
about expert opinion method for marketing research.
ARCOGUL have conducted market research by help ATMA .They research
regarding sale and marketing and the conclusion is ARCOGUL need to improve
brand equity,more aggressive approach and they need to include professional
touch in their product.

53
Few Years ago the ARCOGUAL has done the market research. To know the
treand and what are the reasons why product is not have a good sell. So The
ARCOGUAL has appointed the experts to do the research and prepared
Questionnaire and appointed the extra staff for the research plan.
This research carried for Few days. The deep research was done was done.
After The completion of research the Findings And Suggestion was done. The
final report state that the ARCOGUAL should improve quality and keep less
price.
For this research plan approximately 10 Lakh Rupees were invested. But the
research plan doesn’t prove to be much beneficial. So now the ARCOGUAL
doesn’t do the research plan.
The amount to be invested in research plan the ARCOGUAL invest that amount
in the benefits for there valuable customers. The ARCOGUAL uses that
amount to do less price and gives the benefit to the customers by providing
less price on there customers orders. They give various discounts to the
customers and that helps the customers to earn more profit.
That’s why now ARCOGUAL focuses more on customer benefits and doesn’t
do the market research.
COMPETITORS
Competitors are the persons /firm/company which are offering an substitutes
of our product that a buyer might consider.
The Main competitors for ARCOGUL are as follow:
 Maruti
 Tirupati
 Dhara
 Rani
 Vimal
 Jivandeep
 Ankur

54
 Gulab
 Fortune
Competitive strategy of ARCOGUL is purely quality, location, identification
of market.
CONCLUSION
Conclude that visit all the “ARCOGUL” was an unforgettable experience
“ARCOGUL” was established in 1969 at ANAND District for last some years
they are paying interest on loan and reducing main objectives their debt and
now they are preparing well. The main objective of this co-operative society is
to provide good quality to the customers.
It was my fortune to get the chance to visit the “ARCOGUL” all the staff
members and workers gave as all information That we see so at last will
conclude that the future of this unit will be clear and efficient and also
therefore that if improve the production and qualities to the organisation .
Qualities to the organisation and now a day they want to achieve their target
which is very high, but they are trying best for that purpose.
In the end I would say may best compliment to the “ARCOGUL” for its better
future in welfare of the society employee and consumer.

56
Introduction:
Finance is the blood of any organization. Finance assumes great
importance in every aspect of any organization. It is the art and science of
managing money. Finance management is concern with duties of the financial
managers in the business firm. Financial managers actively manages the
financial affairs of any type of business namely, financial and non-financial,
private and public, large and small, profit seeking and not-for-profit. Broadly
there are 2 main functions in finance management: (1) procurement of fund
and (2) effective utilization of fund.
RATIO ANALYSIS
Ratio analyses are a powerful tool of financial analysis. A ratio is
defined as “the indicated quotient of two mathematical expressions” and as
“the relationship between two or more things”. In financial analysis a ratio is
used benchmark for evaluating the financial position and performance of a
firm. The relationship between two figures, expressed mathematically, is
known as a financial ratio.
The most important task of a financial is to interpret the financial
information in such a manner, that it can be understood by the people who are
not well versed in financial information figures. The technique, by which it is
to be calculated, is known as ‘Ratio Analysis’.
(1) Percentage (2) Rate (3) Proportion
Ratio Analysis is an important technique of financial analysis. It depicts
the efficiency or shortfall of the organization in the form of trend analysis.
Different ratio appeal to different people managements, having the
task of running business efficiency, will interest in all ratios.
A supplier of goods on credit will be partially interested in liquidity
ratios, which indicate the ability of business to pay its bills.Existing and future
shareholders will interest in the investment ratios, which indicate the level of
return that can be expected on an investment in business.

57
Major customers, intent to having a continuing source of supply, will
be interested in the financial stability, as reveled by the capital structure,
liquidity and profitability ratios.
Debenture and loan stock holders will be interested in ability of a
business will be interested in the ability of a business to pay interest and
ultimately to repay capital.
Steps in ratio analysis
 Collection of information, which are relevant from the financial
statements and then to calculate different ratios accordingly.
 Comparison of computed ratios of the organization or with the industry
ratios.
 Interpretation, drawing of the inference and report-writing.
Types of ratios
Several ratios; calculated from the accounting data, can be
grouped into various classes according to financial activity or function to be
evaluated. We may classify the ratios into the followings categories.
 Liquidity Ratios
 Leverage Ratios
 Efficiency Ratios
 Profitability Ratios
 Other Ratios
DATA ANALYSIS
LIQUIDITY RATIOS
Liquidity ratio measures the ability of the firm to
meet current obligations. In fact, analysis of liquidity needs the
preparation of cash budgets and cash fund flow statement but liquidity

58
ratios by establishing a relationship between cash and other assets to
current obligation provide a quick measure of liquidity. These ratios
show the position of business of business and ascertain that the
company has enough working capital in the business or not.
 Current ratio
 Quick ratio
1.CURRENT RATIO :
The current ratio is a measure of the firm’s short-term
solvency. It indicates the availability of current assets in rupees for every one
rupee of current liability. A ratio of greater than one means that the firm has
more current assets than current liabilities against them. It is a measure of
short-term financial strength of the business and shows whether the business
will be able to meet it.
Current Ratios = Current assets
Current liability
Year Current assets/Current liabilities Ratios [In times]
2010 71382779.47
61061940.02
1.17
2011 84470984.80
70957392.78
1.19
2012 77730321.77
65821242.75
1.18

59
Interpretation:
Current ratio shows the position of business. From the above
calculated diagram we can see that current ratio is ratio, which increases or
decreases. As a conventional rule a current ratio 2:1 or more is considered
satisfactory. It may be interpreted that in ARCOGUL in year 2010, 2011, 2012
there is insufficient liquidity. Company’s current are very low as compared to
last two years.
Here, liquidity is reduced constantly because of lack of fund of cash.
2. QUICK RATIO :
Quick ratio is called acid test ratio. It is ratio between
quick assets and current liabilities. It is calculated by dividing the assets by
current claim. Quick ratio is the measurement of firm’s ability to convert its
current assets quickly into cash in order to meet its current claim.The term
quick assets refer to current assets which converted into cash immediately
or at a short notice without reduction in value of quick ratio.
1.16
1.165
1.17
1.175
1.18
1.185
1.19
1.195
2010 2011 2012
1.17
1.19
1.18
Ratiointimes
Years

60
Quick Ratio = Quick assets
Current liabilities
Quick Assets = Stock, Sundry Debtors, Advance, Cash and Bank Balance.
Year Current Assets – Closing stock
Current Liabilities
Ratio [In times]
2010 71382779.47 - 7455854.82
61061940.02
1.04
2011 84470984.82 – 41804215.62
70957392.78
0.60
2012 77730321.77 -30336962.91
65821242.75
0.72
Interpretation:
Liquid ratio and quick ratio is designed to show the amount
of cash available to meet immediately payment. Generally, a quick ratio of
1:1 is considered to represent a satisfactory current financial condition. A
quick ratio of 1:1 or more does not necessarily imply sound liquidity
0
0.2
0.4
0.6
0.8
1
1.2
2010 2011 2012
1.04
0.6
0.72
Ratiointimes
Years
Quick Ratio

61
position. It can be interpreted that in ARCOGUL in 2010 Current financial
position is satisfactory whereas it is not so in 2011, 2012. The current
year’s liquidity is sufficient as the ratio lies near by the ideal ratio. It is also
affected due to lack of liquidity or cash.
3. LEVERAGE RATIOS
To judge the long-term financial position of firm,
financial leverage ratio is calculated. The composition of capital of
business and the proportion of owner’s capital and capital provided by
outsiders are reflected by leverage ratios of:
Fixed Assets Ratio
Debt Equity Ratio
Proprietary Ratio
These are the ratios showing proportion of various type of
capital each other. E.g. Debt equity ratio shows proportion of debt capital and
owned capital in the total of the company.
4. FIXED ASSETS RATIO
Normally, the fixed assets of business must be purchased out of
capital only, which includes share capital, reserves and long term liabilities.
This ratio, therefore, shows the relationship between fixed capital and fixed
assets.
Fixed Assets Ratio = Long Term Funds
Fixed Assets
Long Term Funds = Share capital+ reserve+ long term liabilities

62
Year Share Capital + Reserve
Fixed Assets
Ratio [In times]
2010 22123200 + 38946070.48
31524163.33
1.94
2011 22123700 + 43696070.48
27703927.44
2.38
2012 22123700 + 43714540.41
25462226.85
2.58
Interpretation:
Fixed assets ratio shows the investment in fixed assets
during the particular year. The ratio must be 1:1 or more i.e. fixed assets
must at least be equal to fixed assets. If the fixed capital is less than fixed
assets, it would mean that short-term fund must be used in fixed assets.
From the above diagram we can say that fixed assets ratio of the
company is constantly increasing in every year that means share capital
is more than fixed assets.
0
0.5
1
1.5
2
2.5
3
2010 2011 2012
1.94
2.38 2.58
Ratiointimes
Years
Fixed-Asset Ratio

63
5. DEBT EQUITY RATIO
This ratio is another of proprietary ratio and relationship between the
outside long term liabilities and owners’ funds. It shows the proportion of
long term external equities i.e. proportion of funds provided by long-term
creditors and that provided by shareholder or proprietors.
Debt Equity Ratio = Total debt * 100
Total equity
Year Total Debt * 100
Total Equity
Ratio [In %]
2010 180458122.29
22123200
8.16
2011 174620118.68
22123700
7.89
2012 165484893.68
22123700
7.48
7
7.2
7.4
7.6
7.8
8
8.2
2010 2011 2012
8.16
7.89
7.48
Ratioin%
Years

64
Interpretation:
Debt equity ratio calculated shows the extent to which
financing has been used in the business. A high ratio means that claims a
creditors are greater than a high level of debt introduces inflexibility in
the firm’s operation due to the increasing pressures from creditors. A
high debt company is able to borrow funds on every restrictive terms
and condition. The loan agreements may require a firm to maintain a
certain level of working capital. Debt ratio is constant decreasing
from2010 to 2012 which mean the debt of the company is decreasing.
And coming near to the equity capital. It is good for company.
6. PROPRIETARY RATIO
Proprietary Ratio is found out by dividing proprietary fund by Total Assets.
Proprietary Fund = Equity Share Capital + Reserve and Surplus
Proprietary Ratio = Proprietary Fund * 100
Total Assets
Year Proprietary Fund *100
Total Assets
Ratio [In %]
2010 61069270.48
48177994.78
126.76
2011 95819770.48
47255969.48
139.28
2012 95838240.41
43409755.87
151.67

65
Interpretation:
Proprietary Ratio for the year 2009-10 it is 126.765% and in
2010-11 it is 139.28% and in 2011-12 it is 151.67%. Out of total assets the
above percentage is invested by proprietor.
The higher the ratio, the stronger the position of the enterprise as it signifies
that the proprietors have provided larger funds to purchase the assets. This
ratio cannot exceed 100% If it is 100%, it means that the business does not
use any outside liabilities.
A very high ratio is therefore not desirable, because it means that in sufficient
use is being made of outside funds. The ratio is highest in current year and it
shows an insufficient use of outside funds.
7. EFFICIENCY RATIO
The ratios, which show the efficiency with which assets are used in
business, are known as Efficiency ratio or Turnover ratio or Activity ratio.
Such ratios show the speed with which assets are converted into cash as
110
115
120
125
130
135
140
145
150
155
2010 2011 2012
126.76
139.28
151.67
Ratioin%
Years

66
compared to sales. The higher this ratio the higher is the efficiency of
business. Creditors and shareholder’s invest their money for investing in
assets of business and so they are interested in knowing the efficiency and
speed with which the assets are converted into sales. Some proportion must
be maintained between sales and total assets. If this is not the case, it can be
said that there is imbalance somewhere in business.
Efficiency ratios, thus involves a relationship between
sales and assets. The ratios having the relation of resource by business
effectiveness learned e.g,
 Debtors Turnover Ratio
 Creditors Turnover Ratio
 Total Assets Turnover Ratio
 Fixed Assets Turnover Ratio
8.DEBTORS TURNOVER RATIO
A firm sells goods for cash and credit is
used as a marketing tool by a number of companies. When the firm
extends credit to its customer. Book debts (debtors or receivables) are
created in the firm’s accounts. Book debts are expected to be converting
into cash over a sort period and therefore are included in current assets.
The liquidity position of firm depends on the quality of debtors to a
great extent. Financial analyses apply three ratios to judge the quality or
liquidity debtors: (a) debtor turnover (b) collection period and (c) again
schedule of debtors.
Debtor’s turnover ratio can be found out dividing average debtors by
sales.
Debtors Ratio = Debtors + Bills receivable*365
Sales

67
Year Debtors *365
Sales
Ratio [In days]
2010 30266367.32 * 365
819052616.58
14
2011 27173700.13 * 365
927982312.58
11
2012 33280864.91 * 365
1221031544.05
10
Interpretation:
Debtor’s ratio, which is designed to show the amount of cash,
needed meet the emergency. Above there is calculation and diagram showing
debtors ration last three years. It is not stable. It fluctuates over the years. In
2009-10 it was 14 days, in 2010-11 it was 11 days, and in 2011-12 it is 10
days. It is decreases. So, it is good for company. Because receivables are got
earlier than previous year.
0
2
4
6
8
10
12
14
2010 2011 2012
14
11
10
Ratioindays
Years

68
9.CREDITORS TURNOVER RATIO
Creditor’s ratio gives us the number of days within which amount due for
credit sales is collected. Similarly, the number of days within which we make
payment to our creditors for credit purchase is obtained from creditor’s
velocity.
Creditors Turnover Ratio = Creditors + Bills payable *365
Net purchase
Year Creditors * 365
Net Sales
Ratio [In days]
2010 61061940.02 *365
784028830.63
29
2011 70957392.78 * 365
925664169.53
28
2012 65821242.75 * 365
1176971682.60
21
0
5
10
15
20
25
30
2010 2011 2012
29 28
21
Ratioindays
Years

69
Interpretation:
Creditor’s ratio shows the amount paid by the business during
the year. From the above diagram and calculation it is clear that credit ratio
in2009-10 it is 29 days, in 2010-11 it is 28 days and in 2011-12 it is 21 days.
This indicates that the ratio have positive trend.
10.TOTALASSET TURNOVER RATIO
The amount invested in business is invested in all assets jointly
ands sales affected through them to earn profits. It is calculated to find out
relation between total assets to sales.
Total asset turnover ratio = Total Sales
Total Asset
Sales
Total Asset
Ratio [In times]
2010 819052616.58
48177994.78
17.00
2011 927982312.58
47255964.48
19.64
2012 1221031544.05
43409755.87
28.32
0
5
10
15
20
25
30
2010 2011 2012
17
19.64
28.32
Ratiointimes
Years
Total Asset Turnover Ratio

70
Interpretation:
This ratio is important to know the overall efficiency of the
business. The higher this ratio, it shows that with less amount of investment
in total assets, the business has a capacity to sell more and as such its
profitability is more.
Of course, while using this ratio, some care must take. If the assets are very old
and more depreciation has been deducted, then the turnover seems to be
more which In fact does not show much efficiency.
11.FIXED ASSETS TURNOVER RATIO
To ascertain the efficiency and
profitability of business, the total fixed assets are compared to sales.
The more sales in relation to the amount invested in fixed assets, the
more efficiency is the use of fixed asset. It indicates higher efficiency. If
the sales are less in compared to fixed assets, it means that fixed assets
are not adequately utilized in business.
Even, excessive sales are indication of over trading and are dangerous.
Fixed turnover ratio = Total Sales
Fixed Assets
Year Sales
Fixed Assets
Ratio [In times]
2010 819052616.58
31524163.33
25.98
2011 927982312.58
27703927.44
33.39
2012 1221031544.05
25462226.85
47.95

71
Interpretation:
Fixed assets turnover ratio shows the investment in the fixed
assets during the particular year. The above diagram shows small fluctuations
in fixed assets of every year. It is decrease by 2010 and then increase in
2011and 2012 but ideal ratio is1:1 so, it can be say that sales is more than
fixed assets.
12.PROFITABILITY RATIO
Every business unit is established to earn
profit and develop on that basis. Hence profitability ratios are the most
important ratios. The management should evaluate their own
performance and to get an idea progress of their business. The
shareholders who have invested their money in company’s business
desire to get good return on their investment. Creditors are also interest
being returned to them on time. This is possible only when business is
profitable. The profitability ratios are:
0
5
10
15
20
25
30
35
40
45
50
2010 2011 2012
25.98
33.39
47.95
Ratiointimes
Years

72
 Gross profit ratio
 Net profit ratio
 Operating ratio
 Return on equity shareholder’s fund
13.GROSS PROFIT RATIO
The first profitability ratio in relation to sales is
the gross profit margin. The gross profit margin reflects the efficiency
with which management produces each unit of product. This ratio
indicates the average speed between the cost of goods sold and sales
revenue. When we subtract the gross profit margin from 100%, we
obtain the ratio of cost of goods sold to sales.
Both these ratios show profit relative to sales after the deduction of
production cost and indicate the relation between production cost and
selling price. A high gross profit margin ratio is a sign of good
management. If this ratio is low, it indicates that the cost of sales is high
or the purchasing is insufficient.
Gross profit ratio = Gross profit * 100
Sales
Year Gross profit * 100
Sales
Ratio [In %]
2010 18236707.77 * 100
819052616.58
2.23
2011 22615214.65 * 100
927982312.58
2.44
2012 18937928.83 * 100
1221031544.05
1.55

73
Interpretation:
In the above diagram we can see that gross profit ratio in relation
to sales is margin. From the above calculation the gross profit are positive in
nature. But this year it is reduce compare to last two year.
14.NET PROFIT RATIO
Net profit is obtained when operating expense,
interest and taxes are subtracted from the gross profit. Net profit
margin ratio establishes a relationship between net profit and sales and
indicates management’s efficiency in manufacturing, administration and
selling the product. This ratio is the overall measure of firm’s capacity to
with stand adverse economic condition.
Net profit ratio = Net profit * 100
Sales
0
0.5
1
1.5
2
2.5
2010 2011 2012
2.23
2.44
1.55
Ratioin%
Years
Gross Profit Ratio

74
Year Net profit * 100
Sales
Ratio [In %]
2010 -4540793.69 * 100
819052616.58
-0.55
2011 165478.31 * 100
927998312.58
0.02
2012 5270541.46 * 100
1221031544.05
0.43
Interpretation:
Net profit margin ratio establishes a relationship between net
profit and sales. From the above diagram we can see that it is not stable. It is
negative in the year 2009-10 (-0.55%) that the company suffering in losses
but in 2010-11(0.02%) and in 2011-12 (0.43%). It is fruitful for company. It is
only happened when the company reduces their administrative and office
expenses.

75
15.OPERATING EXPENSE RATIO
The operating expenses ratio explains
the changes in the profit margin (EBIT to sale) ratio. The ratio is
computed by dividing operating expense via, cost of goods sold plus
selling expense and general administrative expense (excluding interest)
by sales.
It is ratio showing relationship between cost of goods sold plus
operating expense and net sales. It shows the efficiency of the
management. The higher the ratio the less will be the margin available
to proprietors. This is usually expressed as percentage.
Operating Ratio = Operating expense * 100
Sales
Year Operating expenses * 100
Sales
Ratio [In %]
2010 750432148.50 * 100
819052616.58
91.62
2011 937854152.34 * 100
927982312.58
101.06
2012 1191581382.51 * 100
1221031544.05
97.59
85
90
95
100
105
2010 2011 2012
91.62
101.06
97.59
Ratioin%
Years

76
Interpretation:
The operating ratio of ARCOGUL indicates year 2009-10 it is
91.62%, in 2010-11 it is 101.06% and this 2011-12 year it is 97.59%. It is
decrease compare to last year.
16.RETURN ON SHAREHOLDER’S FUND
It shows what percentage of profit is earned on
capital invested by ordinary shareholder’s fund. The ratio is obtained by
dividing net profit after deduction of preference divided by the amount
of ordinary share capital plus free reserves.
Return on equity shareholder’s fund = Net profit *100
Equity share capital
Year Net profit * 100
Equity share capital
Ratio [ In %]
2010 -3939859.69 *100
22123200
-17.81
2011 165478.31 * 100
22123700
0.75
2012 5270541.46 * 100
22123700
23.82

77
Interpretation:
From the above calculation and graph we can see that the trends
are positive and negative in their nature. In the graph shows two years return
on equity shareholder’ fund ratio is positive in the year 2010. That means
return on equity is got and can be utilized as a dividend to the share holders.
-20
-15
-10
-5
0
5
10
15
20
25
2010 2011 2012
-17.81
0.75
23.82Ratioin%
Years

78
FINDINGS
These are the Findings:
 In this survey, it is found that consumer gave their response on the
prices of products. Most of the respondent feels that the prices of
product are fair.
 ARCOGUL is large and successful Co-operative sector in India working
for the benefit of its member not for profit making.
 The return on equity shareholder’s funds figure shows negative trend
since2010.
 The ARCOGUL is suffering in losses but last year it makes profit.
 Fixed assets turnover Ratio shows the investment in fixed asset is
continuous decrease.
 Creditor’s ratio is increase in year 2010 to2011 but in current year it is
decrease.
 Debtor’s ratio is fluctuating. It was change in year 2010 to 2011. But for
the last two years it remains unchanged.
 The Quick ratio of 1:1 is considered to represent a satisfaction current
year financial condition. In ARCOGUL, current financial position is
satisfaction in year2010 whereas it is unsatisfactory in 2011 and 2012.
 Current ratio must be 2:1 or more is considered satisfactory. In
ARCOGUL, it is insufficient liquidity in year 2010 to2012.
 I find the main thing is that ARCOGUL brand name has very good image
in consumers mind and they consider it as pure and good product.
 In this survey, it is also find that most of the consumers give preference
to taste. Then, they give the preference to quality and after it to prices
and quantity. In other words, most of the consumers give least
importance to quantity. The second, third and forth factor of least
important is price, quality and taste.

79
Human resource management
RECRUITMENT

80
Recruitment is making pro-sportive candidate aware about the vacancy in the
organization and motivate them to apply.
They issued advertisement local news paper for job and invite application of
deserve people for that job they call some deserve person for interview. They
authorized person selects the person then company is trained to his
employees and also recruit with the help of his present employees.
Recruitment form of ARCOGUL
POLICY OF ARCOGUL

82
Sources of recruitment
Basically the sources of recruitment in ‘ARCOGUL’ are following types:
 TRANSFER & PROMOTION.
 ADVERTISEMENT IN LEADING NEWS PAPER.
 PRIVATE CONSULTANT.
 EMPLOYMENT EXCHANGE.
 Campus interview.
 Contract base.

83
Training to Employees:
Yes, the training to employee are necessary because from it the employee get
idea how to work and from training. They have to develop their skilled and
work easily. Company gives various training to its employee like on the job
training, off the job training, under study experience in the on the job method.
For developing executive or management level employee company use
seminar role playing and training to executive.
Anand oil also giving training with government training institute.
Promotion of Employees:
Promotion is given to employees the
basis of seniority and performance.
Development of Human Resources:
‘ARCOGUL’ spends a very good amount of money for the development of its
human resource, company organizes various program also for their
development. We paid higher amount to H.R profession for development of
human resources as they are a very important part of our organization. We
continuous take care of development of our human resources.
Facilities to Employees:
‘ARCOGUL’ provides canteen facility to the employees. It also provide
transport and uniform facility besides this all facility company provide good
working conditions so as employees can work.
1. All necesari facilities in plant.
2. Wash rooms.
3. Canteens.
4. Good environment for working.

84
Motivation to Employees:
Company use monetary and non-monetary method for the motivation
purpose motivation is the most important point of the company. The company
tried to various program in the year and for recognition facilities. They use
1. Insurance
2. Bonus
3. Promotion
4. Gratuity
5. Family care
6. Also take care before the death & disability of employees family.
financial as well as non-financial technique to motivate his employees.
Company also focuses on the basic need of their employees it also provide
opportunity for the career development.
Labour Problem:
There is no labour problem in the company
Performance Appraisal:
Performance appraisal is done by the higher authority in systematic and
formal way.

86
Grievances:
The relation between management and labour is cordial and there are no
grievances.
Labour Union:
There is no labour union in the company.

87
Agricultural marketing services
ACTIVITIES
Development of members controlled cooperative structure.

88
Management for agriculture finance and its timely availability.
Price support and suitable marketing system for agricultural
products.
Use of Information Technology to speedy dissemination of
information.
FERTILISERS
Arcogul buy the different fertiliser from the major brands of india and resell to
local farmer according to demand. So it is one type of middle man services
provide by the arcogul and enjoying the commission.
RENT

89
Arcogul has a many storehouses so now they no use of it ..so by giving on rent
basis to AMUL for their storing.
DAL PROJECT
Dal project is run by mother dairy, Amul, Arcogul, in campus of arcogul..in this
dal project make dal from the mix of the 5 different beans. It is very popular in
foreign and other parts of india for making sambhar.

91
ARCOGUL industries are a successful operation of a business unit an
entrepreneur has manages the resources in a strategic manager.
Strategic management considered as a four variable analysis known as
SWOT analysis. The relationship of such four factor are as a under
STRENGTHS WEAKNESS OPPORTUNITIES THREATS
Firm has core-
competence that
competition
cannot match.
High
investment in
machines and
poor capacity
utilization.
Favorable economic
environment like
high economic
growth, low interest
rate, low inflation
good exports.
Quick change in
customer tastes &
choices.
Good liquidity. High cost of Favorable political Lower profitability
and thus lower
SWOT
STRENGHTS
WEAKNESS
OPPORTUNITIES
THREATS

92
production. environment. capacity to generate
internal funds.
Good research
& development.
High cost of
production.
Favorable
technological
environment like
quick adoption of
technology, cost
reduction, quality
improvement.
Efficient, loyal
& committed
manpower.
Good process
and operation
control.
Amicable
relationship
between
management
and labor.
Efficient
marketing
channel.
High degree of
customer
satisfaction.

94
Finding
1. Through the study I found that awareness regarding companys financial
information.
2. It is found that company’ position is well than past year because their
management is good.
3. Winning the heart by quality and great taste and distributing sufficient dealer
margin is a winning strategy of ARCOGUL.
4. Its 'Value for money' strategy enables even a kid to buy fresh & healthy food
in small prices. Indeed in a neck to neck competition ear one must
implement new ideas.
5. Arcogul has developed the think tank who continuously updates strategy in
the right direction. Think win-win & Stay ahead with us.
6. Company’s profit is more than past year.
7. Mostly people buy these products only for the enjoyment & time pass
because these products are oily and hygienic for the health.
8. Company give advertisement for their profit so people aware about their
products.
9. This market is not available in all over gujarat so they try to deliver their
market slowly in all over India.

95
Suggestions
1. To improve level of awareness the customers, the company should cradle the
aggressive advertisement campaign for Commodity and domestic market.
2. Though the main source of information is mouth publicity, the company
should constantly try to improve and maintain the services even in schemes
and in offers. Because in product, test, best quality; so at some point of
time, people will go for such company which provides a good amount of
facilities.
3. The company should provide best online facilities to their working client
which helps them increase the frequency in making profit and future aspects.
4. The company should increase their production lines like Domestic market,
Indian market and facilities under one roof to attract people.
5. The company should provide advisory services to the customers and also
they should help in selecting the best products.
6. Mostly employees and customers are not aware about the products and many
things because of lack of knowledge; so the company should target properly
regarding knowledge as well as facilities.

97
After experiencing the training at Arcogul .we conclude that the
practical knowledge is very essential for every student by this training we
experienced the present market situation and the business strategy as the
management stdents we came to know that how to take decision.
ANAND is one of the popular brand name in the edible oil products
now the company is in the growth stage the company highly concentrates on the
qualiy of the products .

99
Books
1. I.M.Pandey “Financial Management” Vikas Publishing House pvt
Limited, Delhi, 8th
edition.
2. Khan and Jain “Financial Management” Tata Mc Graw Hill
Publishing Company Limited, New Delhi.
3. “Financial Management” by Sikkim Manipal.
4. “Financial Management” B.S. Shah Prakshan.
5. “Marketing Management” by American marketing association.
Websites
1. Www.Google.co.in
2. www.anandoil.co
3. www.scribd.com
4. www.slideshare.com
5. www.hubspot.com

Anand oil

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Anand oil

Similar to Anand oil (20)

Recently uploaded

Recently uploaded (20)

Anand oil