The document provides information about the small scale sector in India. It discusses how the small scale sector has significantly contributed to India's economic growth through employment generation, GDP growth, and exports. The small scale sector accounts for 40% of manufacturing output and creates the largest employment opportunities after agriculture. Within the small scale sector, food products, non-metallic mineral products, and metal products are some of the largest employment generators. The small scale sector also plays an important role in rural and urban employment as well as exports from India.

1. SMALL SCALE SECTOR IN INDIA
The phenomenon growth of industries in the small scale
industrial sector has been stinking feature in the economic
development of the country since independence. It has been
contributed to overall growth or the gross domestic product as well as
in terms of employment generation and export. one of the measure of
the policy supporting for promoting small scale industries is the policy
of reservation of economically viable and technically feasible items for
exclusive manufacture in the small scale sector. The policy of
reservation initiated in 1967 primarily as promotional and protective
measure vis-à-vis the large scale.
SSI sector in India creates largest employment
opportunities for the Indian population, next only to agriculture. It has
been estimated that a lakh rupee of investment in fixed asset in small
scale sector generates employment for four persons. According to the
SSI sector survey conducted by the ministry and national information
centre with the base year of 1987-88 the following interesting
observation were made related to the employment in the small scale
sector.

2. Food products industry has ranked first in generating
employment, providing employment to 4.82 lakh persons (13.1%).The
next two industry groups were No-metallic mineral products with 3.73
lakh persons(12.2%) and metal products with 3.73 lakh persons(12.2%)
and metal products with 3.73 lakh person (10.2%) .In chemical
&chemical products, machinery parts and expects electronically parts.
Wood products basic and rubber & plastic products. The contribution
ranged from 9%to 5%, the total contribution by these eight industries
group being 49%. In all other industries the contribution was less than
5%.
Rural
Non metallic products contributed 22.7% to employment
generated in rural areas. Food products accounted for 12.1%wood
products and chemical products shared between them 17.5%
Urban
As for urban areas, food products and metal products almost
equally shared 22.8% of employment.Machenery and parts except
electrical, on metallic mineral products and chemical products between
them accounted for 26.2% of employment in metropolitan areas the
leading industries were metal products machinery and parts except
electrical and paper products &printing (total share being 33.6%)

3. State wise employment distribution
Tamilnadu (14.5%) made the maximum contribution to
employment .This was followed by Maharashtra (9.7%), utterpradesh
and west Bengal (8.5%) the total share being 27.7% .Gujarat(7.6%)
,andrapradesh(7.5%) Karnataka (6.7%) and Punjab (5.6%) together
accounted for another 27.4%per unit employment was high 17 16 14
respectively .in Nagaland, Sikkim and dadra &nagarhaveli .it was around
the average of 6.
Production
The small scale industries sector plays a vital role for the growth of
the country. It contributes 40% of the gross manufacture to the Indian
economy. It has been estimated that a lakh rupee of investment in fixed
assets in the small scale sector has grown rapidly over the year. The
growth rates during the various
plan periods have been very
impressive. The number of scales has increased from an estimated 8.74
lakh units in the year 1980-81 to an estimated 31.21 lakh in the years
1999.
From the year 1990-91 this sector has exhibited a comparatively
lower growth trend .Which continued during the next two year

4. however this has to be viewed in the background of the general
recession in the economy? The transaction period of the process of
economy reforms was also affected for some period by adverse factor
such as foreign exchange constrains.
Export Contribution
SSI sector plays a major role in India present export
performance .SSI sector is contribution 45-50 of total export. Direct
export from the SSI sector account for nearly 3505 of total export. The
number of small scale units that undertake direct export. The number
of small scale units that undertake direct export would be more than
5000.
Besides direct export, it is estimated that small-scale industries unit
contribute around 15% to export indirectly. This takes place through
merchant export, trading house and export house. This may be also be
in the form of Experts order from large units or the production of parts
and components for use for finished exportable goods. It would
surprise many to know that nontraditional products account for more
than 95% of SSI exports.

5. The exports from SSI have been clocking excellence growth rates in this
decade. It has been mostly fuelled by the performance of garments,
leather and games and jewelers unit from this sector.
Economic indicators
The small scale industry today constitutes a very
important segment of the Indian economy. The development of this
sector came about preliminary due to the vision of our Prime Minister
Jawaharlal Nehru who sought to develop core industry and have a
supporting sector in the form of small scale has emerged as a dynamic
and vibrant sector of the economy.
Today it accounts for nearly 35% of the gross value of the output in the
manufactory sector. And over 40% of the total Export from the country.
In terms of value added this sector accounts for about 40% of the value
added in the manufacturing sector .The sector’s contribution to the
employment is next only to agriculture in India
Indian Food processing Industry
Indian products above 200 million tons of food grains every year. All
major grains paddy, wheat, maize, barley millet, like jower,bajra&ragi

6. are produced in the country. The country is self sufficient in grains
production and is the second largest rice producer in the world, with a
20% share.
The food processing industry sector in India is one of the
largest in terms of production, consumption, exports, and growth
prospects. The government has accordingly it a high priority. With a
number of fiscal relief and incentives to encourage commercialization
and value addition to agriculture produce, for minimizing pre-post
harvest wastage, generating employment and exports growth,
important sub sector in food processing industries are:-fruit &vegetable
processing, fish processing, milk processing, meat &poultry processing,
packaged convenience food alcoholic beverages soft drinks and grains
processing etc
As a result of several policy initiatives undertaken since
liberalization in august 1991, the industry has witnessed fast growth in
most of segments. As per a recent study on food processing sector, the
turnover of total food markets is approximately Rs: 250000 cores out of
which value added food products comprise Rs: 80000 cores
Since liberalization in august 91- and till Feb. 2000 proposals for
projects of over RS: 53800 cores have been proposed in various
segments of the food and agro-processing industry. Besides this, govt
has also approved proposals for joint venture, foreign collaboration,
industrial license and 100%exports oriented units envisaging an
investment of RS: 19100 cores during the same period. Out of this
foreign investment is over RS: 9100 cores

7. Processed food exports were at over RS: 13500 cores in
1998-99.Out of these exports rice accounted for 46% where as marine
products accounted for over 34%
Primary food processing is a major industry with lakh of
rice mill/hullers, flourmills, pulse mills and oil seed mill. Hera are
several thousand of bakeries traditional food units and fruit/veg/spice
processing unit in unorganized sector ,there are over 820 flourmills,418
fish processing units,5198 fruit/veg processing units 171 meat
processing units.
India is the world second largest producers of fruits
&vegetables, but hardly 2% of produce is processed. India is the land of
spices producing all varieties worth over RS: 3500 cores amounting to
25-30% of world’s production, which is processed for value-add ion and
export. It grows 22 million tons of oil seeds covering most of
varities.Other important plantation products include tea, coffee, cocoa,
and cashew. It has large marine products and processing potential with
varied fish resource along the 8041 k.m
Features of Indian food processing sector
1. It is the seventh largest country with extensive administrative
structure and independent judiciary sound financial&infractural
network and above all a stable and thriving democracy.

8. 2. Due to its diverse agro-climatic condition it has wide ranging and
large raw material base suitable for food processing industries.
presently a very small percentage of these processed into value
added products.
3. It is one of the biggest emerging markets, with over 900 million
population and a 250 million strong middle class.
4. Rapid urbanization, increased literacy and rising per capita
income, have all caused rapid growth and changed in demand
pattern, ending to tremendously new opportunities for exploiting
the large latent market. An average Indian spends 50%of
household expenditure on food items.
5. India’s comparatively cheaper workforce can be effectly utilized
to setup large low cost production basis for domestic and export
markets

9. Company profile
Nature and history
In 1970 Rani food products was started as a proprietorship
concern with a capital of RS:750/-,during the factory was located at
Thazhangadi,vadakara.The total number of employees including office
during 1970 was just 20 and he main production was chili powder and
for the production process a powdering machine was used. From the
production of chili powder, Rani Food Products grew gradually. Few
year later Rani acquire few across land at chorode.3 km away from the
heart of vadakara town established their factory at chorode.in 1980
rani was converted into partnership firm with a total number of three
partners. Now it is one of the most profitable concern in india.State
bank o India finance the firm
Rani products are marketed iside india as exported to many foreign
countries of middle east Europe,usa,of the total production 10%
exported and rest 90% are consumed domestically.
Rani products have been approved by
Spice house certified
ISI 9000 certified by I SO UK
Indian spices logo issued by the spices board India

10. At present 100 staff are working in Rani Food Products of which
majority are females that is 16 sales man,12 clerks,40 workers,5
computer staff 7 helpers,10 chemist and 10 drivers. For the welfare of
the employees a canteen is being functioned in the factory compound
which provides food at subsidize rate, the normal working hours in rani
is from 8 am-5pm in between they are giving 1 hour lunch break. All
employees other than trainees are given leave according to Factories
act 1948.
Every staff in packing section are given salary on monthly basis.
Employees in packing section are paid as per price rate system. Sales
persons are given travelling allowances. Retirement ages of employees
is at the age of 58 and are given retirement benefits including E.S.I
gratuity, PF etc

11. Product Profile
Rani Food Products manufactures different type
of products. It includes spice powder, pickle, curry powder, and whole
spice and other items. The rains concentrate in variety of products.
They are tasty and high quality.
They have tried to provide an ethnic taste to their
products to give customer the feeling of homemade masala. They do
not add any essence to their products.
They have come up with a range of masala which is
added to some dishes, imaret the original flavor expected. Hence
breaking the regional barriers in cooking them culinary arts across the
nation into one. Their product taste and quality had created a special
place in the heart of the people.

12. Product Details
Spices





Chili powder
Coriander powder
Turmeric powder
Dry ginger powder
Black pepper powder
Curry Powder











Chicken Masala
Meat Masala
Chicken fry masala
Tandoori chicken masala
Channa masala
Biriyani masala
Vegetable masala
Samber masala
Fish masala
Rasam POWDER
Garam masala

13. Whole Spices
 Chilly
 Coriander
 Turmeric
 Mustard
 Fenugreek
 Cumin
 Dry ginger
 Cloves
Veg pickles & Non –veg pickles
 Lime
 Mango
 Tender mango
 Garlic
 Ginger
 Mixed vegetables
 Ginger chutney
 Prawns
 Mussels
 Fish

14. Other items
Coffee POWDER
Idly powder
Compounded Asafetida powder
Atta
Rice powder

15. Marketing Department
Marketing Manager
Supervisor
Sales
Representative
Sales man
Drivers
The head of the marketing department of Rani Food
Products is marketing manager. Sales executive and sales man comes
under the marketing manager.
The company moves its product through direct selling
and distribution. In the local area, company provides direct marketing
and other areas the distributor will supply the product

16. The marketing department collets the customer
related information through sales executives and retailers. The
marketing departments organize various promotional activities to
increase sales.
The company gives a special attention to its activities.
The company is spending more on promotional activities like
advertisement and sales promotion
The various Medias used for advertisement include
magazines, newspaper, and electronic media. The company seeks
various advertisement agencies for designed and planning its
advertisement
The company undertakes various sales promotional
Scheme with the various objects at three levels.
1. Dealer level
2. Consumer level
3. Sales man’s level
it helps to increase company’s sales volume
Distribution Channel
Distribution of product is done through following methods;
1. Direct distribution
2. Through agent representatives

17. Direct distribution is made to those dealers who places order before
the company and direct distribution is done through the company on
vehicle. The company gets order from dealers all over the country. The
main function of department is canvassing order and distribution of
goods. Advertisement is the important medium of canvassing.
Advertisement is done through






Banners
Stickers
Board display
Posters
News paper
Magazines
These medium help to boost business in local market and at home
market. As far as foreign market is concerned participation in
international exhibition, fairs etc.help to boost sales.

18. Various Departments
The various departments in Rani Food Products are:
1)
2)
3)
4)
5)
MARKETING DEPARTMENT
HUMANRESOURCE DEPARTMENT
FINANC DEPARTMENT
PRODUCTION DEPARTMENT
PURCHASE DEPARTMENT

19. Organizational structure
Ownership pattern
Rani Food Products is an organization owned by a partnership system.
Mr.vivek who is well experienced in this field of manufacture,
distribution and exporting of food items for the past 20 years he is the
manager of this firm
Management Pattern
A rani food product is an organization which is managed
by a family. The company has its own conventional method of
operation.
These method and technique have been followed by
the family members, right from the ideas that the organization must
perform certain functions to carry out its operation
Style
The management style of rani is semi Paricipative
Company formulates its objectives by discussing with the staff.
Employees are getting chances to represent themselves in
the meeting. The service and wage policies and decision are finalizing
by considering the opinions of trade union also.

20. Machinery
Company always up to date to the latest technology, they
have installed much modern equipments and driers which ensure high
productivity and hygiene.
Quality policy
Quality of the product is the key element taken into
consideration by the company so the company gives incentive care and
trust on quality of their product. All the raw material is selected and
purchased by the top level management itself. Each batch is being
tested in the lab

21. BIBLIOGRAPHY
Companies’ journals and magazines
www.rani foodproducts.com
B Narayan, strategic management

22. SUGGESTIONS
I.
II.
III.
IV.
V.
An advertisement plays a major role in making decisions of buying
the product especially TV advertisement. So they must introduce
more advertisement in TV, if possible more pop Display,
advertisement in newspaper and magazines etc. so that people
may know about the product more widely
Sales promotion activities attract the consumer. So rani powder
must introduce price offer, and free gifts
A company should create a brand ambassador and make the
brand popular
Company should improve the packing of the products
A good financial policy should be adopted so the firm can function
smoothly

23. FINDINGS
1) Ranis products ensure that consumer receive quality. Reliability
and integrity in the products and services. The system call for
strict adherence of specifications and quality requirement
2) Their service quality covers all aspects of customer transactions
3) Rani products also give importance to environmental protection
4) They are exporting the product from all parts of country and
abroad
5) The company is in sound financial position
6) Labor absentees’ of the company is very high

24. SWOT ANALYSIS

25. SWOT ANALYSIS
It has been defined as a conceptual frame work for a
systematic analysis that facilitates matching the external threats and
opportunities with the internal weakness and strength of the
organization.
Why Swot?
It is a tool for auditing in an organization and its
environment. It is the first stage of planning and helps marketers to
focus on key issue. Once key issue have been identified, they feed into
marketing objectives it can be issued in conjunction with other tools for
audit and analysis
It is very popular tool, quick and easy learns. Swot analysis stands for
Strength, Weakness, Opportunities and Threat.
STRENGTH
Brand loyalty among customers
Most modern technology
Best quality at affordable price
Eco friendly
Sound financial position

26. WEAKNESS
Insufficient production capacity
Power failure
Short supply of raw material
High production cost
Poor supply chain management
OPPERTUNITIES
New market in sub urban areas
Increased consumer demand
Foreign markets
Increased population
THREATS
Labor problem
Cost of production
Very high competition
Government policies
Declining profit marginContinious increase in the price of raw
material

27. VISION
Rani will be responsive to customer requirement consonant
with its competitive and profitability. Rani will provide its customer
satisfaction by giving customers right product at the right price at the
right time.
Rani will have profitable operations overseas.Rani believes in the
important of the process. People and project will be evaluated in the
result and the process adopted
MISSION
Reach the level of market by attaining maximum number of prospective
customers through inspiring them by the old age tradition of food
habits and tasty proportion in handed over from generations.
OBJECTIVES OF THE COMPANY
To ensure fair dealing to customer
To provide employment opportunities
To make good available to customer at the right time

28. PURCHASE DEPARTMENT
Purchase manager
Purchase executives
Worker &Store keeper
Purchasing manger major role in the organization is to purchase the
goods. He has to select the goods of high quality. Rani purchase raw
material mainly from Tamilnadu, Madhyapradesh, Rajasthan and
Andrapradesh. The purchasing department purchase raw material and
subsequent entries are made in the purchase department.
The top person in the purchase department is purchase manager. He is
responsible for the delivery and shortage of raw material; semi finished
goods and finished goods.

29. Functions of Purchase Department
When production department gets order from the marketing
department production department informs the purchase department.
The purchase department sends the required qualities of material for
production. Then the finished goods are also stored in the purchase
department. They are issued to marketing department as and when
required.

30. FINANCIAL HIGHLIGHTS
Year
Profits(lakhs)
2002-03
11.9
2004-05
13.85
2006-07
15.75
2008-09
16.11
2010-11
18
It can be seen from the table that the profit figure of the company have
an increase from 2002-2012
The company follows double entry book keeping system and the
company. System is fully Computrised.The Company keeps the
following books of accounts
1. Journal
2. Ledger
3. Cashbook

31. Only transactions are entered and posting, balancing etc are done
by the computer
The functions of financial department
Managing cash flow
Keeping records
Payment of salaries and other expenses
Keeping sufficient cash to meet the emergencies in furniture
Arranging the finance at the time of need
Loans raised from financial institutions
Capital Structure
The capital structure of the company proprietor’s fund and bank loans.
Sixty percent of the financial requirement is met by taking loans from
S.B.T, vadakara.The rest 40% is met through properties own fund. The
last year audit report shows that the company earned a turnover of 3
crores per annum.The profit at 6% of three crores.

32. FINANCE DEPARTMENT
General manager
Personnel manager
Office manager
Finance is the important thing in the business. Day by day cash flow in
to and out of the business. There should be synchronization between
inflow and out flow.
Rani cash management is done in financial department. Financial
department is headed by finance manger. His finance manger mange’s
the cash flows; keeps the cash in future, arranging the finance at the
time of need etc.Finance manger gives financial advice to the firm when
needed and also helps in computing the remittance of levy.

33. PRODUCTION DEPARTMENT
Production manager
Quality control
Supervisor
Worker
The major raw materials used in rani are chilly, turmeric, pepper,
cardamom, ginger, coriander, garlic etc.The procurement of raw
material is mainly from Tamil nadu, Andrapradesh, Utterpradesh,
Madhyapradesh, Rajestan.The goods which are converted in to finished
products is done at the factory under the supervision of production
manager, There are 4 types of machines which are used in the factory
for the production which include;
1. Powdering machine: This machine is used to powder the raw
material in the finished goo
2. Cleaning machine: This is used for the removal of dust and sand
from the raw material

34. 3. Packing machine: This machine is used for the packing of finished
product in appropriate packets
4. Sealing machine: After the packing function is over packets are
sealing machine.
Raw material level
Through pre-cleaning and inspection is done before any rawmaterial is
passed on to production. Inspection for microbial condemnation,
pesticide and fertilizer residues is done in a sophisticated lab of
international standard.
In-process Hygiene
Periodic standard cleaning procedures for boiler, dusts, and vessels are
done under expert supervision. Personnel hygiene of the worker is
ensured by anticipated dips at entry and exit. Work clothes are cleaned
and sterilized in a state of the art facility. Head wear and mouth piece
prevent contamination by hair microbes during work hours.
Other functions of production department are receipt, physical
verification and issue of raw material, inventory control disposal of
scrap

35. Quality Control
The group’s intention to go led to the establishment of quality control
lab for the dual purpose of ensuring high quality and adding further
value to existing range of products.
Rani come to the consumer market only after rigorous quality check
strictly adhering to the guiding principle into the market only after
rigorous quality check strictly adhering principle on quality standard.

36. CONCLUSION
A rani food product is a small scale industrial unit. Which possess a vital
role in the commercial map of vadakara.This is an organization that
grows in slowly steady manner. It makes greater contribution to the
society and economy through different ways.
Now days the organization slowly moving to the product diversification
and plan modernization for making better performance in the coming
days. So through the efficient management and dedicated direction the
companies can achieve greater things to capture the horizons of
success with a shot span of time

37. HUMAN RESOURCE DEPARTMENT
General Manager
Personnel manager
Office staff
Experience as well qualified employees are the greatest strength of rani
.The employees are continuously trained constantly to update with the
knowledge base to keep abreast with the changing business
environment.
The personnel manager handles with the office staff in personnel
department who is under the general manger. He is studying in each
employee. I can understand that all employees’ are satisfied with the
operational of personnel department. A pool of experience and
qualified employees is the strength of rani.These employees are trained
continuously.

38. The personnel manger handles with various functions in personnel
department. The personnel manger under the control of general
manager. The personnel mangers also assist different office staff. He
also thoroughly studies and understands each and every employee and
initiates them in achieving organization goals.
About 96 staff are working in the company and majority of the staff
include female staff that is
15 sales men
10 clerks
40 workers
5 computer staff
7 helpers
9 chemists
10 drivers
The time shifting is helping the employees. The shifting time gives more
relaxation and refreshment to the employees
Rani Working Hours Is From 8 am 5pm
Personnel manger takes decision regarding recruitment, training, and
selectionand promotion.
RECRUITMENT
Recruitment is the proposing job where organization make search for
prospective employes.Source of recruitment are divided into internal
and external

39. Source of recruitment
Advertisement in news paper
Employment exchange
Educational institution
Labor contractors
In rani recruitment of employees’ is done directly by the company.
Interview is carried out for selecting efficient candidate
TRAINING
Training is the process of increasing the knowledge an skill for doing
particular job. It is unorganized by which people learn knowledge and
skill for define purpose. The main purpose of training is to bridge the
gap between job recruitment and present competence of an
employee. Training is job oriented and it is impacted at workplace.
Training is impacted for shot period and it gives quick and apparent
result. Rani provides training to its employees every 90 days
PERFOMANCE APPRAISEL
Perfomance appraisel is the process of evaluating personnel job
performance and his potential for development. It is an important
rating of employee’s excellence .In rani product performance appraisal
is take place in every year. It helps to improve the job performance of
the employees.

40. PROMOTION
A promotion takes place when an employee’s moves to a position
highest than the one previously occupied .The responsibility. Status and
pay also increase when as a result of promotion. Hera is no increase
when as a result of promotion. There is no increase in the employees
pay it is called day promotion
In rani the recruitment is done mostly through promotion. Here
promotion is done mainly on the basis of the performance of the
employees. Some other factors considered for the promotion and
absenteeism, honesty, track record etc of the employee
INDUSTRY PROFILE

41. CONTENTS
Chapter
no
1
Executive summery
Executive summery
Industry Profile
Company Profile
Product profile
2
Functional areas
3
Swot analysis
4
Findings,suggestions&conclusion
5
Bibliography
Page no

42. A REPORT THE INTERNSHIP TRAINING UNDERGONE AT RANI FOOD
PRODUCTS-VADAKARA
The internship training report submitted to Bangalore University, of management
Bangalore in partial fulfillment of the requirement of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
ANJALIKRISHNA K.K (12DKCMA007)
Under the guidance
BIRAJ ANIL AMITH-MBA
SIMS COLLEGE OF MNAGEMENT-BANGLORE