project Report on AVALON COSMATIC

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Project of In-Plant Training On Avalon Cosmetics Pvt. Ltd.

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B.G.P.S.

RAJARSHI SHAHU INSTITUTE OF MANAGEMENT

P-75, Behind Garware Polyster,Chikalthana M.I.D.C.

Aurangabad-431210

Project Report On

In-Plant Training at Avalon Cosmetics Pvt.

Ltd.AT

F-6, Malegaon MIDC,

Sinnar, Nashik- 422103

Presented by Guided by

Mr. Santosh D Amilkanthwar Miss. Pranita Shroff

(MBA-Finace) (Professor)


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B.G.P.S.



Aurangabad-431210

CERTIFICATE

This is to certify that project report on,

In-Plant Training at Avalon Cosmetics Pvt. Ltd.AT

F-6, Malegaon MIDC,

Sinnar, Nashik- 422103

Submitted By,

Mr. Santosh D Amilkanthwar

As per requirement of Dr. Babasaheb Ambedkar Marathwada

University,Aurangabad in partial fulfillment of the Master Degree in

Business Administration for the year 2009-2010.

Guided By Director

Prof. Pranita Shroff Prof. Ejaz Qureshi


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B.G.P.S.



Aurangabad-431210

DECLERATIONDECLERATION

I hereby declare that this project report submitted by me in my

partial fulfillment of Master of Business Administration is a

genuine work of mine.

It has not been submitted either fully or partly to this or any

other institute prior, in any other connection.

Mr. Santosh D Amilkanthwar M.B.A. (3rd SEM) (Finance)


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B.G.P.S.



Aurangabad-431210

ACKNOWLEDGEMENTACKNOWLEDGEMENTMy foremost thanks to Prof. E.A.Qureshi, Director,

Rajarshi Shahu Institute Of Management, Aurangabad for motivating me in my project work at “AVALON”.

My outmost thanks to all the staff members at there for their valuable support, encouragement, guidance and suggestion during the course of my summer in – plant training.

I am also thankful to Prof. Pranita Shroff for their valuable guidance during the course of my summer in – plant training.

For M.B.A. students, his summer in – plant training is very important for the career, everybody wishes to get a good organization for the project, which has contributed for me to get a project at “AVALON” and gave me a chance to work with such good organization and learn out most of it.

I also specially thankful to Mr. Sadashiv Borse, Commercial Manager, Avalon Cosmatics for allowing me to do IN PLANT Training in one of the leading manufacturing industry-“AVALON COSMATIC.”


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Mr. Santosh D Amilkanthwar M.B.A. – 3rd SEM (Finance)


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Contents

1. Introduction 1

2. Objective of Training 3

3. Company Profile 4

4. Product 14

5. Various Departments studied at Avalon cosmetics

a. Purchase Department 15

b. Production Department 19

c. Marketing Department 28

d. Finance Department 32

e. Human Resource Department 42

f. R&D and Technological Department 48

g. Export Department 50

h. Stores Department 52

i. Safety Department 57

7.Achievements during the training session 64

8. SWOT Analysis 65

9 Conclusion 67

10 Suggestion 68


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11 Bibliography 69


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INTRODUCTION

Talent and capability are of course necessary but opportunity is

very important back up without which no person can climb the mountain

of success.

Here in Dr. Babasaheb Ambedkar Marathwada University during

the academic year of MBA (Master of Business Administration) course

students get that opportunity to face the practical work in the industries.

Through the university curriculum.

In-Plant Training give students opportunity to work with

organization and get chance to experience actual production work,

machinery handling process as well as the work done by the officer in

various departments such as finance, marketing, Production, HR,

Research and Development and Safety Department

In-Plant Training:

This technique, has been developed by business school, is the most

common form of industrial training. In such training the business schools

organizes training of there students in the industries the in-Plant training

is basically on the job training where the trainee is not an employee of the

organization. The trainee is introduced to various departments of the firm

or company where he/she get the information of the respected

departments. Special projects can also be assigning to these student

during there training program. During the training program the students

observe many things practically which trey have learn in their curriculum.


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On the basis of these observations they to prepare a report called as in

plant training report.

Training and development of human resources has evoked a great

deal of interest in recent years. Human resource management has two

basic approaches: a respective approach or problem-solving approach or a

provocative, of forward-looking approach. Training is used in both the

approaches. Training is the systematic process of changing the behavior,

knowledge, skills and attitudes of present employees to improve the

match between employee characteristics and employment requirements.

In the present day radical changes, organizations are shriving hard

to maintain a viable and knowledgeable work force. Obviously, employee

training and development has become not only an activity that is

desirable but also become a big business and getting bigger.

What is Training:

New problems, new procedures and developments in technology,

new knowledge and job requirements are constantly creating the need for

training thus making it a continuous process. Coping with the changes

essentially involves increased emphasis on human resources

development. Development of human resources involves acquisition of

new abilities with changed skills, knowledge and attitude of the employee

necessary for better performance. Development includes both training to

increase skills in performing a specific job and education to increase

general knowledge of the total environment.

Thus, training and development activities can become meaningful

when integrated with the overall human resource development strategy of

an organization.


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OBJECTIVES

1. To understand the economic factors related to industry such as expenses

over technology and HR. And how this factors affect the sales volume

and their opportunities.

2. To understand the competitive position of rival products in market

3. To observe the reaction of customers and consumers.

4. To understand the key areas and limitations of the products

5. To analyze the market size

6. To know the estimation of demand

7. To asses the volume of future sales and budgeting.

8. To study the nature of the market its location and its potentialities.

9. To understand the effects of competitors over production and the

strategies to overcome from weaknesses

10.To know the management attitude, discipline & problem solving skills of

managers & superiors.

11.Gain the knowledge of in-Plant Training about company structure,

environment and organization.

12.To get aware of HR practices followed by the organization.

13.To get aware of various legal acts and law applicable to diffe4ent

departments of a company like companies act 1956, labor laws, contract

act.

14.Quality policy of the company.

15.To understand the management culture.


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COMPANY PROFILE

Proprietors

1. Smt. Asha Ramanlal Kothari

Phone: 022-6527714

2. Mr. Sameer Ramanlal Kothari

Email: [email protected]

Phone: 022-6527715

Mobile: 09372747809

Education Qualification :

“MBA In Finance” from London in 1999

ABOUT US

The company introduce it selves as “leading

Manufacturer” of beauty products, Toilet Preparation and

Article of whatsoever nature in solid liquid gaseous semi

solid wax viscous emulsification or article form

COMPANY PROFILE


mailto:[email protected]

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The company is engaged into the contract manufacturing of

Cosmetics, Personal Care & Food products. We are catering to renowned

customers like HUL, Wipro Ltd, Cavin kline, Reckit Benkizer, Wipro

Ltd, Oriflame, Emami, Provogue, Reliance Industries and Subhiksha

MISSION STATEMENT

To provide world Class Solution for the Cosmetics, Personal Care

& Food Products industries in the areas of product development,

manufacturing and distribution.

CORPORATE HIGHLIGHTS

Group Turnover 80 Cr. (2008-2009), increased by 25% by 2007-

2008

Team of more than 800 people.

International Exposure with joint ventures with US & European

companies and on-going distribution in the entire Middle East.

Promoters with more than two decades of experience in

manufacturing of cosmetics and personal care products.

BUSINESS ACTIVITIES

Manufacturing

Contract Manufacturing Solutions

Private Label Solutions

Training

Distribution

MANUFACTURING HIGHLIGHTS


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More than 3,75,000 sq. meter. of owned manufacturing space.

Providing tax benefits to the customer. Having manufacturing units

at Silvassa, HP, Atgaon-Maharashtra and Nashik.

Facilities inspected and audited by various multinational

companies.

Complete confidentiality assurance of all data, especially

formulations for each customer.

MANUFACTURING PRODUCT CATEGORIES

Hair Care: Hair food, Hair oil, Hair shampoo, Hair cream, Hair gel,

hot oil treatment.

Skin Care: Body lotion, moisturizer, cream, shower gel, bubble

bath, face wash, body wash, face/body scrub.

Personal Care : Talcum Powder, shaving cream, perfume, liquid

hand wash

Fabric Care: Liquid detergent for woolen clothes.

Home Care: Liquid dish wash, surface cleaner, glass cleaner, toilet

cleaner.

Colour Cosmetics: Blush-ons, compacts, eye shadow, nail polish.

Body Care: Baby cream, shampoo, hair oils, lotions and baby

powder.

Food Products: Soups, Jams, Jelly, Ketch ups, Juices, squash,

dessert powder and other process foods.

The company is engaged into the contract manufacturing of

Cosmetics, Personal Care & Food products. We are catering to renowned


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customers like HUL, Wipro Ltd, Cavin Kline, Reckit Benkizer, Wipro

Ltd, Oriflame, Emami, Provogue, Reliance Industries and Subhiksha etc.

Sr.no Name and Address of Proprietor Number of Equity Shares

Taken By Each Subscriber

1.Smt. Asha Kothari

W/o. Shri Ramanlal Kothari

904/b Kukreja Palace,

V.B. lane, Santacruz (E),

Mumbai- 400 075.

5000

(Five Thousand)

2.Mr. Sameer Kothari

S/o. Shri Ramanlal Kothari

904/b Kukreja Palace,

V.B. lane, Santacruz (E),

Mumbai- 400 075.

5000

(Five Thousand)

TOTAL

10000

(Ten Thousand)

Sr. NO. Particulars Information


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1. Company name Avalon Cosmetics Pvt.

Ltd.

2. Factory Address Plot No. F-6, Malegaon

MIDC, Sinnar, Nashik-422

103, Tel.:(02551) 230905

3. Correspondence

Address.

158, dani compound,

C.S.T. Rd., Kalina,

Santacruz(East),Mumbai-

98. Tel.: 022-26527504

4. Plot Area 68,000 Squere Meter

5. Shaded Area 40,000 Squre Meter

6. Connected Load 107HP

SCOPE & QUALITY POLICY


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SCOPE

A. The main object of the company to be pursued by the company on its

incorporation.

1. To carry on the business s manufacturers, distiller, purifiers,

extractors, drawers refiners, packers, buyers, sellers, dealers ,importers,

exporters, processors, works contractors, agents and distributors,

licensors, of cosmetics and toilet preparation. Such as synthetic, aromatic

oil, perfumes, shampoos, lipsticks, hair dyes, facial power, lotions, facial

creams, snow, nail polish, hair oil, lavenders, spirituous preparations,

scents, perfumed hair oils, rouges, toilet soaps, bath soaps, shaving soaps,

shaving cream and other beauty products, toilet preparations and articles

of whatsoever nature in solid liquid, gaseous, semi-solid, wax viscous

emulsification or air sole form or a combination of any such forms.

B . The scope incidental or ancillary to the attainment of the main object

are:

2. To enter into negotiation, collaboration, technical or otherwise with

any person, firm, company, body corporate, institutions or with

government for obtaining for obtaining license and to obtain technical

information, know-how and expert advice.

3. To acquire from time, to time such stock-in-trade, chattels, patents etc.

4. To lend and borrow money from banks, institution and other agencies.

5. To open branch offices throughout India and abroad.

6. The company is engaged in manufacturing of branded products such

as DOVE shampoo (uniliver), knorr soup (uniliver), Glucovita,

Emami, Provogue, Reliance Industries, Subhiksha and HUL Etc.


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QUALITY POLICY

AVALON is committed to supply its customers with the right

quality products on a consistence basis.

We will achieve this by……….

Working to an agreed quality standards in line with customer

experience and international industry standards

ensuring that all the key process from concept through development

and production are managed and controlled

Developing quality management system based on adherence to cGMP

and the quality stand which increase ownership of quality by all

We will operate our company in an efficient and ethical manner.

We believe this be achieved through continues improvement.


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OBJECTIVES

The company objectives are….

To provide safe and healthy environment for all its employees and

by every reasonable and practicable means to endeavor to eliminates

accidents and any other occurrences which might be prejudicial to their

welfare - to provide necessary equipments, facilities and training to its

concerned employees for the implementation of statutory environmental

requirements.

It is the responsibility of each employee to know and understand

their own roll in overall arrangement and procedure for safety in general

and through out the company and in particular with their own area of

working. Copies of the SHE statement (and any amendments and revision

to same) will be available at this Company’s. Office.

Company will provide appropriate instruction and where necessary

suitable training in matters of safety and good work practice. The safety,

health and welfare of all the employees are a priority of management and

to the best of its ability. The company will provide all the resources

necessary for the implementation and maintenance of this policy. To

fulfill our obligations under the law and to achieve all the objectives set

out in this SHE statement the full co-operation of each employee and

statement the full co-operation of each employee and any other person

affected by it is necessary.


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TECHNOLOGY

Avalon Cosmetics Pvt. Ltd. has got all the latest technology

upgraded equipment for each & every activity. From receiving of raw

materials up to the storage & delivery of product.

PLANT & MACHINARY

The following are the machine information which is use to produce

quality production to enhance the companies reputation. In Avalon

Cosmetics there are two types drying & sieving machine. It differentiate

as per the Batch size and type of soup ingredients.

I. TRAY DRIER MACHINE

The major work perform by machine is drying as well as sieving

the various flavor & raw material.

II. FEEDER BIN

This is the machine in which the dried raw material or ingredients

are pouring. The material is cast in big blander. The material then flowed

up towards next machine.

III. METAL DETECTOR MACHINE

This machine use to detect the metal filling & small stones etc.

This machine is attached with the mess pack machine.

VI. CUP FILLER


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The cups are use to pour the final product into the pouches.

V. MESS PACK MACHINE

Mess pack machine is the packing machine by which the dried

soup material is filled in pouches of 52gm.

PRODUCTSProject of In-Plant Training On Avalon Cosmetics Pvt. Ltd.

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Knorr, Hindustan Unilever's largest soup brand in the country, is all set

to launch a new and exciting ad campaign this season.

The Avalon cosmetics is entitled to manufacture the four flavors of

Knorr Soup. Which are as follows.

1. Knorr Oriental Sweet Corn Vegetable Soup.

2. Knorr Oriental Hot n Sour vegetable Soup.

3. Knorr Classic Thick Tomato Soup

4. Knorr Creamy Mushroom Soup Powder


http://entertainment.oneindia.in/bollywood/features/2009/kajol-knorr-soup-100809.html

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PURCHASE DEPARTMENT

The purchase department plays a very important role in Avalon

because The quantity and type of orders are varies according to the

product which is being ordered by the client companies for manufacturing

.Purchasing has its effect on every vital factor concerning the

manufacturing, quality, cost, efficiency and prompt delivery to customers.

The main function of the purchasing department is first to register with

suppliers. Second is placing the purchase order.

REGISTRATION OF SUPPLIERS

The suppliers are sent the registration form.

The respective buyers are identified.

Scrutinize the information provided by suppliers.

Arrange for a visit by concerned personnel if necessary.

Forward the recommendation to the plant head for decision

regarding approval.

Include the name of approved suppliers in the list of suppliers.


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THE MAJOR SUPPLIERS ARE

A. Champions packaging industries Pvt. Ltd. Chennai

B. Vimal international Mumbai.

C. Unique sugar ltd.

D. Manjushri technologies Ltd. Bangalore.

E. Ridhi sidhi glucose bios ltd.

F. Sai printing press Mumbai.

G. IIS Chennai

H. Manadakini Papers ltd.

I. Hindustan Uniliver ltd. Kalwa.

The buyers are categorized according to the materials supplied.

THE MAJOR MATERIALS INCLUDES

a. Aluminum laminated pouches (champion packaging Chennai.)

b. Bottles -250gm./ 500gm/600gm./1000gm.(M.T.tech. Bangalore)

c. Acrobic acid- (vimal international.ltd.)

d. Glucose Powder

e. Paper wads

f. Flavors and Perfumes

g. Chemicals.

h. Food oil.

Once the supplier is registered then the ordered is placed with them.


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PURCHASING INFORMATION AND TRACK ON RAW

MATERIAL INVENTORY

Receive monthly production plan from production planning and

control department and information about the stocks from the

stores departments.

Estimates the order to be placed.

Prepare purchase order giving details of schedule, quantity, price,

description of items.


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The order at the time of receipt has to pass from the inward quality

control. The material coming into the business is tested here for quality

and if material does not meet the specification it is rejected. For example,

the quality carton sheets are checked for thickness and hardness.

This quality test is done on the basis of sampling. The material

which is transferred to the rejection and rework section or is returned to

the vendor. The raw material like plastics, cartons, flavors and Perfumes

items are tested. The company follows a double sampling plan. If the

material is rejected for the first time it is again tested.

PRODUCTION DEPARTMENT


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Avalon cosmetic have a huge set up. There is a systematic

procedure followed for carrying out the production process. The

production is carried out at various stages. Mainly they are as follows:-

The production process of Avalon cosmetics is bieferget

as per the type of production. Mean while during the session of inplant

training there was two product. Are under process. Namely KNORR

SOUP and GLUCOVITA ENERGY DRINK each product having four

varieties. Which are-

SOUPS:

1) Knorr Oriental Sweet Corn Vegetable Soup.

2) Knorr Oriental Hot n Sour vegetable Soup.

3) Knorr Classic Thick Tomato Soup

4) Knorr Creamy Mushroom Soup Powder

ENERGY DRINK

1) New Glucovita Orange Energy

2) New Glucovita Lime Energy.

3) New Glucovita Pineapple Energy.

4) New Glucovita Plane Energy.


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1. Sourcing RM/PM

2. Transportation Of RM/PM

3. All Row Material Receipt

5. Issue RM To Production

4. Storage At RMS

6. Drying of corn flour & fumigated maida(try drier)if required

7. Drying potato flour / rice flour (in tray drier) if required

8b. Sieving (10 & 8 mesh)

11. Sorting weighing dehy. Veg and noodles addition

10. Heated HVO Filtered & adding

8a. sleving (10 mesh)

9. Weighing ingredients(Creamers veg, Powder, MSO, Salt, Sugar, ETO, Treated Spices & condiments)

12. Issuing pre weighted Batches

12. Issuing pre weighted noodles

LOTS DEPARTMENT

13a. R E W O R K

15. Feeder Bin

BLENDING DEPARTMENT

13. Batch preparation in IPC

14. Blending in RMG & Unloading in IPC

13a. R E W O R K

13. Charging in cage bin

14. Blending in cage & Unload

15. Feeder Bin, vibrator

16. Screw conveyor, metal detector

17. Packing in MESPACK

16. Screw conveyor, metal detector

17. Packing in MESPACK

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PRODUCTION PROCESS

1) Sourcing of Row Material.

2) Transportation of RM/PM

3) All Row Material receipts

4) storage At RMS

5) Issue of raw material to Production

LOTS DEPARTMENT

1. Drying of Raw Material.

a. Drying of orange flour and fumigated maida.

b. Drying Potato flour/rice flour by using tray dryer. if required.

2. sieving

a. sieving (10 mesh)

b. sieving (10 & 8 mesh)

3. weighing ingredients (crèmes veg. powder, MSO, Salt , sugar,

ETO,Treated spices. condiments)

BLENDING DEPARTMENT

1.heated HVO Filtered and adding.

2. sorting weighing dehy.veg and noodles addition

6a.Essuing pre-weighted batches.

6b.Batch preparation in IPC

7 Charging in cage bin

8a Blending in RMG and unloading in IPC.

8b. Blending in Cage bin

09. Feeder Bin

10. Feeder Bin, vibrator

11. Screw conveyor, Metal Detector.

12. Packaging in Mess pack.


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As mentioned above in purchase department. The raw materials

such as soup ingredients ,dextrose content, treated Spices,& condiments,

flavor , milk solid, Acidity Regulators etc. are ordered from the vendors.

The each material Is being properly analyses with the various tests by

quality Assurance department. The Following are some kind of testes

1. salt contain

2. water activity

3. Moisture test.

If the raw material is successfully passed all the tests .Then the

material is sends to Row Material Storage Department.

RMS DEPARTMENT

Here in RMS department is being stored and the proper inventory

is being maintain The Head of department of the Inventory is Mr. Shirish

Godse.

The raw material is issued by the inventory department as

per the demand by the production department.

The production department received the raw material.

Before the use of raw material the quality assurance department

test the material for moisture testing and if incase of moisture

the product is send to the tray dryer machine. In Avalon

Cosmetics there are two types drying & sieving machine.

It differentiates as per the Batch size and type of soup

ingredients.


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TRAY DRIER MACHINE

The tray drier machine having capacity of 1400 liter. Tray

drier machine is playing initial role in production process. It’s

the highly automotive machine which dries the raw material &

mixes its all ingredients if needed in condition of weighted raw

materials such as: - corn flower & fumigated Maida, drying

potato flavor or rice flavor. The major work perform by machine

is drying as well as sieving the various flavor & raw material.

The raw material is firstly checked by the Quality Assurance

(QA) chemist and if in case of moisture. If it is Up to the

marked limit. such material is send to tray dryer machine

WEIGHING MACHINE

After the process of drying material the dried material is send

for weighing machine the exact weight has been recorded.


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FEEDER BIN

This is the machine in which the dried raw material or

ingredients are pouring. The material is cast in big blander. The

material then flowed up towards next machine.


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METAL DETECTOR MACHINE

It is one of the most essential machine which company have

assures the quality of the product. Metal detector machine have

all the upgrade function & best technology. This machine use to

detect the metal filling & small stones etc. This machine is

attached with the mess pack machine.


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CUP FILLER

In this machine the separate cup are used to carry the deferent

ingredients such as sugar potato pieces, corn etc. as shown in the

following picture. The cups are use to pour the final product into

the pouches.


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MESS PACK MACHINE

Mess pack machine is the packing machine by which the dried

soup material is filled in pouches of 52gm.

If there is any leakage in the system. The current voltage is checked and

required specification is given. The thermo gun is used to check the

temperature of the machine in consideration with the surroundings. Then

a sample test is carried out to check the quality of the product, which is

the final finished product.


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MARKETING DEPARTMENT

The marketing function of AVALON COSMETICS Pvt. Ltd is

operated from its head office situated at

15, Dani compound, C.S.T.Rd.m Kalina,

Santacruz(E),Mumbai-98. Tel: 022-26527504

And factory is situated at

Plot No. F-6, Malegaon MIDC,

Sinnar, Nashik-422 103,

Tel. :( 02551) 230905

Where all the marketing and promotional activities

are designed and are put to execution. The marketing

department is headed by Mr. Pramod Davrey.

Where all the marketing and the promotional

activities are designed and are put to execution. As the

proprietors are highly experienced and engaged in

manufacturing since last twenty five years. Now this

industry has reached to its maturity stage. And have a

best goodwill in marketing and among various brand

products and big industries in India as well as in abroad.

With the changing scenario Avalon’s marketing activity

have immensely increased.

And for the very same purpose they have roped in Kajol as the brand

ambassador. Kajol would be seen playing a mummy in the ad campaign

which is scheduled to go on air from the 10th of August. The 2009 Knorr



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soup campaign redefines the 7pm snacking trend by offering Knorr soups

as the perfect snack, represented through the campaign idea,

"Tummy bhi khush,

Mummy bhi khush"

Marketing department is responsible for negotiation

with their clients with foreign as well as domestic

countries for manufacturing the products as per the

orders.

The marketing mix of Avalon is consist of Product,

price, place, quality and safety.

The marketing is the core areas of any business to

make it successful and competitive enough in the market

to with stand competitions.



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DUTIES & RESPONSIBILITIES OF MARKETING

OFFICER

Processing of inquiries, preparation of quotation, attained negation

and related marketing function.

Follow up the production department for timely manufacture in

order to meet customer requirement.

To attend to customer complaints in consultation with production

and R& D department.

To monitor on continues basis outstanding dues with different

customers specified for them and control dispatches against

outstanding dues.

Preparation of Monthly/quarterly production program and

preparation of monthly, quarterly/yearly dispatched budgets based

on market data feed back from zonal officers, estimated steel and

the industries growth data, availability of stocks at steel units,

requirement schedule and as per the guidelines of the director of

the company.

Market position and current market survey


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PROCEDURE FOR MAKING OF SALES BUDGET

Sales is estimated on the basis of achievement made in last year as

well as customers demand zonal officer collect the requirements of the

customer & present the same in marketing meeting. base on the data

furnished by marketing head .Director formulate the budget as per the

situation.

PROCEDURE FOR PROCESS OF ENQUIERY

1) Receipt of enquiries

2) Scrutiny of enquiries

3) Formulation & submission of quotation

PROCEDURE FOR SECURING AND REGISTRATION

OF ORDERS

1) Tender opening for collecting details and follow-up

2) Extension of validity of quotation

3) Negotiation meeting

4) Review & registration of order


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FINANCE DEPARTMENT

The proprietor of Avalon Mr. Sameer Kothari itself takes care of

finance department.

The Avalon cosmetic is committed towards its sources of funds for

best utilization of funds. Finance department of any organization is

responsible for obtaining and effectively utilizing the funds necessary for

efficient operations. All the major decision related to finance are taken by

board of the directors

The finance department takes care of the following important areas-

1. finance

2. Accounting

3. costing

4. Taxation

The finance department takes care of all the financial activities of the

company keeping a track record of effective and efficient utilization of

financial resources.


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HIGHLIGHTS OF FINANCE DEPARTMENT

The all financial affairs are settled by the charter accountant Mr.

Heram Govilkar .

The accounts are prepared on the historical cost convention and

materially comply with the mandatory accounting standards used

by the institute of chartered accountants of India. The significant as

accounting policies followed by the company are stated below.

Sales are inclusive of excise duty and sales tax.

Fixed assets are stated at their original cost of acquisition including

taxes, duties, freight and other incident expenses related to

equation and installation of the concerned assets.

Technical know how is also capitalized is fixed assets.

Depreciation on assets is charged on written down value method on

the existing assets and for additions to the fixed assets since the

year 1997-98 the depreciation will be charged on straight line

method.

Raw material is valued at cost computed on monthly average basis

of the last month after providing for cost of obsolescence

Store and spares are valued at cost after considering cost of

obsolescence and estimated useful life.

Scrap other than raw material is valued at net realized value.

Investment are stated at cost.


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The Finance Department is undoubtfully the lifeblood of the business.

The ambitious plans of business would remain mere dreams unless

adequate money is available to cover them into reality. The function

includes day to day concern for the use and control of funds as well as

long range planning which is involved in determining the future

requirement for funds and optimum uses to which they may put in.The

financial function of a firm includes its basic decisions about method of

financing growth, dividend and distribution policy.

Relation with leading institution, economic evaluation of alternative

investments in plant and equipment, and other activities, which involves

uses of funds.

The Finance Officer in company is known as controller or Treasurer.

His responsibilities vary widely from one business unit to another

Financial decisions are made by the Managing Director or Committee of

Board of Directors or by financial controller.


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FUNCTIONS

Executive Finance Function

Incidental Finance Function

EXECUTIVE FINANCE FUNCTION

It requires specialized knowledge and administrative skills. Some of

the executive functions are:

1) Financial Forecasting

2) Establishing Asset Management Policies

3) Allocation of net Profits

4) Cash flow and requirements

5) Deciding upon borrowing policy

6) Negotiation for outside financing

7) Checking upon financial performance

INCIDENT FINANCE FUNCTION

These functions are of routine nature, which are necessary for the

execution of the decisions taken by the executives such as supervision of

cash receipt and payments, custody of valuable papers, keeping and

reporting, cash planning and credit management etc.


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FINANCE ACTIVITIES

The major finance activities are as follows:

Dealing with bank for Avalon’s credit limits

Dealing with bank guarantees and letter of credit

Maintenance of all bank accounts and their reconciliation

Deposit of cheques received from customers

Reduction of tax deduction at sources from party payment

Advance payment to the parties

Co-ordination for preparing pay roll

DISBURSEMENT OF WAGES

The department is basically involved in interpretation and analysis of

total financial and position of the enterprising. Given below is the

working procedure in brief of the department while dealing with bank

system and disbursement of wages:

BANK SYSTEM:

1) NON-FUND TRANSACTIONS:

*Bank Guarantee

*Letter of credit-inland/freight


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2) FUND BASED TRANSACTIONS:

Discounting of B/R

Availing cash credit facility

3) BANK STATEMENT:

A daily record of bank position is maintained which contains

details of available amount payment/receipts.

4) MONTHLY STATEMENT OF CASH FLOW:

Containing details of total inflow and outflow of cash for the

entire month. It also represent the break up of cash inflow, outflow

as per different heads.


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RECORDS OF WAGES:

A successful organization takes care to satisfy its employees in

providing of sufficient amounts of salaries for their servers. This in itself

forms an importance of accounts head.

The procedure adopted by the company is as follows:

= Individual salary records are made calculating are fixed and

= Valuable earnings along with the deduction made

= New appointee register is maintained with entries of employees

Promoted or placed with change of designation

=The above-mentioned working system ensures proper and timely

payment of salaries to employees as per their designation and

contributions made individually.


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48

THE FINANCIAL ANALYSIS OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR 2007 & 2008


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HUMAN RESOURCE DEPARTMENT

OBJECTIVES

The first and foremost objective of the company is to select and

develop dedicated human resource for the organization. Its one of the

objective is also to create sense of belonging amongst employees and

ensure goals are achieved to the highest degree of satisfaction of the

organization and employees.

The company intends to achieve the mission by nurturing and

promoting respect for individual, encouraging individual initiative,

innovation, accountability, mutual trust and equality without

discrimination.

The management style is vertical and structure in a formal way.

THE MAIN FUNCTION OF HR DEPARTMENT

Recruitment of executives.

Assessesment of trainees /probationers.

Promotion / Transfer of executives.

Retirement action for executive.

Quarterly return to employment exchange

Monthly payment with break up fees.

Training and development of employees.

Implementation of performance management system.

The payroll software is used to record all the above occurrences.


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OTHER FUNCTIONS OF HR DEPARTMENT

Manpower planning.

Compensating and welfare scheme.

Health insurance ,safety ad education program

Performance appraisal system and reward scheme.

Working hours.

Attendance system

Leave facilities

Transport facilities

Loan facilities

Industrial relation.

Housing facilities.

MANPOWER PLANNING

Deals with minimizing, preparation of manpower budget,

grievances etc. manpower planning is the main function of personnel or

human resource manager. It is concerned with the task of hiring people to

fill current or future job needs in the company. So the contacts with the

contractors are need to be maintained.


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COMPENSATING AND WELFARE SCHEME

In Avalon cosmetics each staff member is getting meal passes

amounting rupees 400 for each month of the year.

Employee are covered under various schemes of welfare. The

soundness of compensation management depends upon the amount of

wage or salary paid to the employees. Formulation and administration of

sound remuneration policy to attract ad retain right personnel in the right

personnel in the right position is the prime responsibility of the personnel

department.

HEALTH, SAFETY AND EDUCATION PROGRAM

Avalon cosmetics provide health insurance up to Rupees. 100000

to each of its permanent employee. The company plays a vital role in this

regard also by taking care and steps required in this areas to the full and

all possible extent. Regular check is performed to avoid any accidents and

to take care of the safety of each employee.

Health care programs are conducted to ensure better health of

employees.

“Health is wealth. And only the healthy employee can produce the

healthy product.” Is the belief of the HR head.


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PERFORMANCE APPRAISAL

HR department has to concentrate on the performance of the

employees. This exercise is applicable to all the management staff

members. There are two types of appraisals. First is on monthly basis,

which is called performance priorities and second is management staff

performance appraises scheme, which is done once in a year.

WORKING HOURS:

All departments in the factory except Production department operate

as per the following time schedule.

General Shift : 9.00 am to 5:00 pm

(i.e. 8 hrs.)

ATTENDANCE SYSTEM:

The attendance system here at Avalon cosmetics is operated through

Electronic Punching Card System to keep time records. This machine is

connected to personnel department computer so as to assist all the details

at a glance like wages, leave records, late coming details etc.


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LEAVE FACILITY:

In each year conform employee can avail leave as follows:

Privilege Leave : 12days

Sick Leave : 05 days

Casual Leave : 05 days

TRANSPORT FACILITY:

The company provides four-wheeler Van to the Staff members of the

company.

LOAN FACILITY:

This facility is applicable to all the permanent employees of the

company. The company provides loan to the employees for vehicle,

contingency loan and also on medical ground. The maximum limit for

such loans is depending upon the category and grade.


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INDUSTRIAL RELATIONS:

The company has been successful in maintaining. Peaceful

cordial industrial relation with the other industries from factory

end. It has entered into a long-term agreement with the union.

HOUSING FACILITIES

Company has its separate houses for the labors in the

premises of factory. The staff members are facilitated by

providing house rents.


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RESEARCH AND DEVELOPMENT

DEPARTMENT

QALITY CONTROL

The Research and Developments is not the mandatory part for Avalon

cosmetics. As the research over products is made by the respective

vendors and further changes and developments are suggested by the

vendor’s company. If in case of contract regarding Research &

Development, Avalon takes initiatives for it.

Avalon believes in customer satisfaction. It believes that customer

is heart of any business depend on customer. . The quality control is

broadly divided into. They are: - Inward quality control: the material

coming into the business is tested here for quality and if the material

doesn’t meet to the Quality Assurance’s terms and conditions it is

rejected.

For example, the quality of the Bottles is checked for thickness,

hardness and the cap size. The quality test is done on the basis of

sampling. The material which is rejected is transferred to the rejection

and reworks section or is returned to the vendor. The raw material like

plastic, carton, flavors etc. are tested. The company uses.

The company follows a double sampling plan, if the material is

rejected for the first time quality control; line quality control is also called

as process control. On the line process sheets are used to assure the

quality control at each stage. As the refrigerator passes from various


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stages the details such as temperature, voltage is written on the sheet.

Helps in assigning responsibilities. The halogen detectors are used to

check if there is any leakage.

Major Duties Perform by Quality Assurance Department

Quality Analysis

Raw Material Analysis

Packing Material Analysis (Pouches, sleeves, cartons.)

Finished Goods Analysis.

Record Keeping

Auditing.

Testing Equipment used for testing at Avalon’s laboratory.

Water Activity Meter.

Moisture Meter

Bursting Strength.

Polari Meter

Refracto Meter .

Muffle furnance.

Avalon strongly believes in the 5’s.

They are:-

Structure.

Systematize.

Sanitize.

Standardize.

Self Discipline.

EXPORT DEPARTMENT


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Mr. Mathew Tharein is the head of department of export.

AVALON cosmetics and its all sister concerned companies are

engaged in exporting of beauty products, food products etc. to various

countries across the glob. The quality of material has been widely

appreciated by overseas clients. Quality control measures adopted by

Avalon deliver dependable product, which is evident from repeat orders

by valuable customers. The Avalon is all set to meet quality and

quantitative requirements of various products such as cosmetic, toilet

preparations and food products as per the orders.

The company has a contract with various popular companies of India

as well as foreign countries such as

Hindustan Unilever ltd.

Wipro

Reckit bankzers.

Provogue

Oriflame

Christine Valmy

Some of the valuable customers of the Avalon cosmetics across the

globe are……

Saudi Arabia

Bahrain

Nepal

Doha

Jordan

Srilanka

Bangladesh

DOCUMENTATION


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At factory level the following documents are need to prepare.

1. ERE one.

2. export invoice

3. Container seal – (such seals are apply to container after

thorough inspection by Central Excise Department of

government of India.)

4. Bill Of Lading.

STORES DEPARTMENTProject of In-Plant Training On Avalon Cosmetics Pvt. Ltd.

59

The location of store department is carefully plan and housed in such a

position, which is near to the production department. It is planned in such

a way to avoid delay in the movement of material to the department

which is needed. The stores is divided into racks which is further sub

divided into small places. All the small places are known as BINS and for

one item of material one bin is allotted. All bins are serially numbered.

Special attention is paid to storage of materials, which are liable to

leakage, evaporation of deterioration due to atmospheric conditions.

Cold Storage Room

Raw Material Storage Room

THE MAIN OBJECTIVE OF STORE DEPARTMENT


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Availability of materials continuously to the production

department.

There should be no excessive investment in inventory.

Overstocking or under stocking is avoided keeping in view the

disadvantages.

Minimum possible wastage of materials while these are being

stored in the row houses by storekeeper of used in the factory by

the workers.

Risk of spoilage and obsolescence of the materials must be

avoided. For this purpose, a maximum quantity of each material is

determined and proper method of issue of materials is followed.

The material received earlier should be issued earlier.

Information about availability of materials should be made

continuously available to the management so that planning of

production may be done.

PROCEDURE OF STORAGE AND PRODUCTION

1) Ensure that all items received in the stores are through delivery

challans. In case of non – stock stores make necessary entries in

material inward registered.

2) Ensure that all the items received are stored in the area designed as

“receipts stores”.

3) The offer items for inspection stores inspection cleared items in

main store. Stores items rejected during inspection are designated

as return to suppliers.

4) Stores accepted items are designated location such as racks,

cupboards, and floor.


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5) Ensure that high value items such as Dextrose Content, Tricalcium

Phosphate flavors and treated Food Ingredients are stored under

lock and key security.

6) Ensure that various items are delivered to suppliers through stores

delivery challan. Stores all the flat glasses verticals.

7) The items are issued to production through material issue slip only

and in case of non – stock stores items issued through issue slip.

To determine the quantity of raw material inventory to be maintained

they use re – order level, it guides to place the order as and when

required.

RE – ORDERING LEVEL

The point at which the stock of particular material in store reaches a

particular level the store manager initiates purchase requisition for fresh

supplies of that material to the purchase department. The level is fixed

somewhere between the maximum and minimum level. The maximum

held in stock at any time. Stock not exceeds this quantity. The quantity is


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fixed so that there will not be any overstocking. It should be avoided as

far as possible because of the following disadvantages:-

1. As the product is highly perishable it cannot be store for long time.

2. Overstocking unnecessarily blocks the working capital, which

could be profitably utilized somewhere else.

3. Overstocking will need more godown space, so more rent will have

to be paid.

4. There may be loss due to obsolesce on account of overstocking.

5. There are chances of deterioration in quality because large will

require more time before they consumed.

6. There may be fear of depreciation in market value of the

overstocked materials.

The minimum level represents the minimum quantity of the material,

which must be maintained in hand at all times. The quantity is fixed so

that production may not be held up due to shortage of materials.

FORMAT MANNUAL

AVALON COSMETICS PRIVATE LIMITED (KNORR SOUP DIVISION)

MATERIAL ISSUE SLIP Section:- QR / 7 /STR / 15

B Dept / Section Shaft Date:-

Sr. No. SAP No. Description Unit Qty. Req.

Qty. Issued


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Indented By Issued By Received By

Distribution: - Original with stores(QR / 7 / STR / 15, Issue No. 1 / 01 – 03 – 2009, Rev. No. 0 / 01 – 03 – 2009)

SAFETY DEPARTMENT

INTRODUCTION

A major emergency in a Factory plant building is the one, which has

potential to cause extensive damage to the property and serious disruption

both inside and outside the Office. In spite of best safety measures taken

in a plant building, the emergency could be as a result of fire.

SCOPE

Whereas each industry is expected to take steps to assess, minimize

and wherever feasible estimate risks, Fire (which is the only hazard) may

still occur in spite of the best measures taken by any industry. Therefore,


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emergency planning becomes a necessary element of mitigating the

affects of a major incident. Elimination will require prompt action by the

operating staff, the staff on various emergency teams and the outside help

when called. Often a quick plant stoppage, isolation from the effected

area of the plant etc. are called for minimizing the effects. Effects on

people can be minimized by prompt rescue, evacuation, rehabilitation and

communication. Emergency planning is an aspect of safety management

of Avalon cosmetics Ltd, Nasik is minimizing risk by adherence to safe

practice.

OBJECTIVES OF THE EMERGENCY MANAGEMENT PLAN

An emergency occurring may cause damage to property or

disruption inside the premises or human sufferings.

The objective of this emergency plan is to –

1. Protect persons and property of the factory in case of emergency arises

at any time.

2. To inform people about happenings if it is likely to adversely affect

them.

3. To inform authorities including helping agencies like doctors,

hospitals, transport etc. in advance and also at the time of actual

happening.


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4. To identify and work out various kinds of possible hazards their places

potential and damaging capacities.

5. To review, revise, redesigns, and reconstruct the process, plant and

control measures if so assessed.

6. To preserve relevant records and equipment for subsequent enquiry in

to the causes and circumstances of the emergency and taking steps to

prevent recurrence.

ABOUT THE AVALON COSMETICS INDIA LTD –

PLANT & UTILITY BUILDING

Potential hazards and adequacy of existing methods/ resources/ arrangements to

control hazards.

1. STORAGE OF COMBUSTIBLE LIQUIDS LIKES PETROL,

DIESEL, AND

LUBRICANTS ETC.

Separate Storage facilities have been provided at different locations

of the plant to store these materials. A well-designed and maintained

store has been provided to store all types of lubricants. This store is

always kept locked on its both inner and outer gates to prevent any

person entering the store. The store is opened by a responsible person

on the fixed days to issue the lubricants required by the various

departments. Adequate number of first aid fire extinguishers and water

hydrants connection has been provided to immediately control the fire

(if any) occurs in the store.


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2. DG set :

Avalon has a ---- Kv, DG Set to meet its power requirement in

addition to power from state grid. The DG set is run by the diesel and

furnace oil. These oils are stored in separate tanks (underground and

above ground). The area around these tanks has been well guarded.

Also adequate number of first aid fire extinguishers and fire hydrants

has been provided in this area to immediately fight the fire (if any) at

its initial stage.

1. Boiler. Capacity______,

Boiler set installed to meet plant machinery requirement. Boiler set

is run by the diesel & furnace oil. These oil stored in separate tank,

underground tank having capacity _____, and above ground tank

having capacity _______. As a safety purpose around the tank area is

covered by wire fencing compound. So, un authorized person can not

be entered within tank area. Also, adequate number of first aid fire

extinguisher,

Courtyard hydrant point and fire bucket has been provided in this

area to immediately fight the fire at its initial stage.

In addition above add-on precaution shall be taken by utility/

maintenance staff during loading/ unloading. Spillage oil/ diesel

immediately wash by water.

2. TRANSFORMER

___________ KV capacity, transformer installed to meet plant

machinery electric supply requirement. Transformer room well build


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room facilities with first aid fire extinguisher i.e. Co2, DCP, Fire

bucket.

FIRE SAFETY ORGANIZATION

It is hereby notified for the employees of all employees that the

Fire Safety Organization has been revised. The Fire Safety Organization

at Avlon cosmetics Ltd, has been formed with the object of rendering

necessary assistance in the case of sudden outbreak of fire for putting out

the fire and preventing any loss of life and property with the least

possible delay.

Instructions as to what each one of them should do in such times of

emergency are given below for their information and guidance.

1. EMPLOYEE FIRST NOTICING THE FIRE:

To immediately inform Security on duty on phone or by going personally

and give him the following information-

Department where fire is spotted.

Exact location of fire

Object/ material that has caught fire.

Time when the fire was first detected.

His name and T. No.

Attempt to put out the fire with the help of others in the vicinity by

making use of fire fighting equipment readily available in the near by

areas.

On hearing the main siren, the employees on duty within plant

building premises immediately, stop working activity and rush to collect

at nearest assembly point (There are two assembly points)


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Security in-charge in co-ordination time office immediately shall be taken

out head counting and put on notice board.

2. SECURITY CHIEF ON DUTY:

On receipt of the information of fire, he will start warning siren

/Alarm of a high and low pitch sound alternatively for duration of three

minutes.

3. EMPLOYEES OF THE PLANT TRAINED IN FIRE

FIGHTING:

On hearing the fire alarm the employees on duty trained in fire fighting will

immediately proceed to the fire station to find out the location of fire and

collect the additional fire fighting equipments and accessories.

They will then rush to the site of fire and will divide them in various

groups and work under the direction of group leader and fire chief for

extinguishing the fire.

5. FIRE CHIEF:

Factory General Manager is the designated fire chief. The entire

operation including rescue, salvage, fire-fighting etc. shall be performed

under his direction. He shall be assisted by the group leaders of the

various groups formed.

6. FIRE HYDRANTS:

All fire hydrants are painted red. Arrow showing the location of

fire hydrants has been located at prominent places all over the factory.


69

7. HOSE BOXES:

Generally hose boxes are installed near each fire hydrant. In case

hose boxes are away from the fire hydrant, the hosepipes and the nozzles

etc. will be available in the fire station.

8. FIRE EXTINGUISHERS:

Fire extinguishers have been provided at prominent places

9. SAND BUCKETS:


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These have been provided in various departments along with the

fire extinguishers.

FIRE CHIEF

(Mr. Ramesh Singh )

ACHIEVEMENT WHILE DOING THE TRAINING

Following are the various achievements and benefits derived while

working at R.L. Steel. Limited—

Experienced and learnt about various departments practically being

at the company and understood the real situation the industries are

facing in today’s scenario.

Got the opportunity to interact with managers working at the

company and experienced the challenges faced at the workplace.

Got the opportunity to interact with managers working at the

company and experienced the challenges faced at the workplace

Also had practical exposure to various aspects in the field of

management and learnt the ground realities of working life.

This training helped me a lot to gain market knowledge.

Increase in the industrial and personal contacts with various

managers and employees of the company


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The training provided up with knowledge from the practical point

of view to interrelate theoretical knowledge with practical

knowledge.

Improved communication skills and management skills required

for handling situation better.

SWOT ANALYSIS

STRANGTHS & WEAKNESSES

STRANGTHS

The Avalon Cosmetics Pvt. Ltd. Is the manufacturer of baranded

products.

Having good response from foreign Companies.

The company has strong Research and Development dept. for

product and new technology.

The company has many Bank facilities like long credit time and

other facilities.

The company has qualified and experience Human Resource for

selection and recruitment.

Good infrastructure facilities available nearby.


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WEAKNESSES

The company has seasonal product demands

Lack of continuity.

The company has need to make continues changes in production

process according to the product type.

The company has low production in off session.

The company has less man power according to the work.

OPPORTUNITIES & THREAT

OPPORTUNITIES

Avalon cosmetic having huge infrastructure of 68000 sq/ms.

Large and growing market the available to the company is very

large continuously growing.

The company has maintained growth from last many years.

As the population increase the demand of product will increase.

There is a large potential available in local and other than local

market as well.

THEREATS

Threats from local communities and political unions.

There are many competitors in the market.


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The Indian market is the main market of the company but it is very

unstable.

There are so many other factors like environment, political and

regional.

CONCLUSION

AVALON COSMETICS having the good human resource. The

entire employees in the company are well trained and qualified in to the

work. All the departments are well established and fulfill the need of the

employee. So the work environment is very good.

The company is doing well in the market but have to improve the

quality of the product. The machinery used in production is also not so

updated. If company will improve in the all mentioned sector the sell of

the company will increase and the company will achieve the top rank in

the competition

AVALON COSMETICS is one of the leading manufacturing

companies in India. This company produces COSMETICS.

The AVALON COSMETICS in NASHIK is mainly produces the

COSMETICS and FOOD products. The production is done on the basics


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of marketing requirement. The requirement and the other information is

gathered by the Marketing department this requirement is send to the

P.P.C. Department and this department makes the production plane for

the month and gives to the Production Department and products are made

and distributed in the market.

SUGGESITION

1) AVALON COSMETICS should develop managerial skill

particularly to identify the weaker section to reach the benefits the social

and economic objects.

2) AVALON COSMETICS must play prominent role in financing

which may result in rising level of income and employment.

3) The present official staff of AVALON COSMETICS can be given

a suitable management training that modern management concept and

management technologies can be vitalized in the day to day business of V

AVALON Industries for the further improvement.


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BIBLIOGRAPHY

a. Annual report (2007 – 08, 2008 - 09).

b. Company training handbook.

c. www.infodartindia.com

d. www.sapbrain.com

e. www.wikipedia.com

f. www.thevanitycase.com

g. .Financial Management.-V.K.Bhalla.

h. Export Management.- Ashit Ghosh

i. www.google.co.in


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http://www.thevanitycase.com/

http://www.wikipedia.com/

http://www.sapbrain.com/

http://www.infodartindia.com/

Documents

project Report on AVALON COSMATIC