full final report to submit

7/30/2019 Full Final Report to Submit

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Export and Domestic Consumption of Processed

Kernels in India

Quantity (MT)

Year Processed

KernelsExport Domestic

Consumption

% of Exported

Kernels to Total

Processed

Kernels

2000-2001 154034 89155 64879 57.88

2001-2002 182063 97550 84513 53.58

2002-2003 198383 104137 94246 52.49

2003-2004 217598 100828 116770 46.34

2004-2005 247331 126667 120664 51.21

2005-2006 250748 114143 136605 45.52

2006-2007 267093 118540 148553 44.38

2007-2008 279949 114340 165609 40.84

Conversion ratio of raw nut to kernel has been taken at 4.54 (*source CEPC)

1.2: Composition of Industry

Cashew is a highly nutritious and concentrated form of food, providing a substantial

amount of energy. The cashew nut kernel has a pleasant taste and flavor and can be eaten

raw, fried and sometimes salted or sweetened with sugar. It also contributes as an

important source of invisible fat in the diet, being widely used in a variety of ways. There

has been a growing demand for cashew in many temperate countries where the demand is

increasing (Russell, 1979). The nut contains an acrid compound which is a powerful

vesicant that is abrasive to the skin. The cashew shell contains 25% of this reddish brown

oil, industrially known as Cashew Nut Shell Liquid (CNSL) which is a by-product of the

roasting process


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a. Overall CompositionThe kernel is considered to be of high nutritive quality and growing conditions or the

variety of cashew may have an influence on kernel composition. The overall composition

of the kernel is protein 21%, fat 46% and carbohydrates 25%.

b. Protein ContentWide differences in the protein content ranging from 13.13 to 25.03% have been reported

from various regions of India. It has been suggested that protein content be considered as

one of the most important factors in future breeding and selection programs on cashew

nut. The amino acid composition of kernel protein has been reported by various experts

c. Carbohydrate ContentAnalysis of cashew nut kernels from different regions of India have revealed that there

are variations in the reducing sugar content from 1% to 3% and the non-reducing sugars

from 2.4% to 8.7%. Starch content ranged from 4.6% to 11.2% and the oil content also

showed a wide variability from 34.5% to 46.8%.

d. Fatty Acid CompositionThe fat and oil content of cashew nut contributes substantially to its energy content and

consists mostly of glycerides of oleic acid (73.8%) and linoleic acids (7.7%)

It may be mentioned that the high proportion of oleic and stearic acid contents may limit

its use in the diets advocating low energy intake. The high content of MUFA oleic

however, might be beneficial in cases of bowel enteropathy. Also from the point of view

of essential fatty acid requirements, the ratio of linoleic to linolenic (values for cashew

nut not available) acid is considered important. Studies at the National Institute of

Nutrition (NIN) have shown that cereals and pulses on average contribute 3% and 2%

respectively, of invisible fat, providing 1.5% LA and 0.08% ALNA and pulses furnish


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1.3% LA and 0.28% ALNA to the diet. On this basis, habitual rural Indian diets were

found to provide 7% of invisible fat (both from cereals and pulses).

WHO/FAO (1977) had recommended an LA intake of over 3%, the requirement of LA

being around 8g/capita/day. In rural diets, the invisible fat present in cereals, pulses and

milk can meet about 66% of the daily LA requirements. To furnish the remaining 33%,

different amounts of vegetable oils would be required from various sources of nuts and

oil seeds. In the Indian context, figures available for two edible oils furnishing the

recommended intake of LA works out to be 11g or 4% in the adult diet, wherein the fat

intake of total calories would be 11% or 30g.

The judicious use of cashew in the diet in suitable proportions so as to enhance dietary

quality with respect to fat and protein should therefore be possible. Owing to its high

protein content, it could be used along with cereals/staples and pulses in small amounts in

association with vegetables to improve the dietary profile. The level of oil present in the

cashew to ensure energy density in the diet appears to be adequate, but whether it can

meet with the diets LA requirements needs to be studied further.

e. Vitamin ContentThe vitamin content of cashew nut kernels is 0.5 to 1.4 mg per 100 g of thiamin and 0.58

mg per 100 g of riboflavin, a good proportion of vitamin E and traces of other vitamins

are present in cashew. It may be mentioned that the vitamin E content of cashew nut

could be a beneficial factor, in view of the wider use in the diet of the elderly and those

who run the risk of cardiovascular disease. Vitamin E is also a powerful anti-oxidant and

its role in lipid metabolism has been well established. Fats containing a lesser amount of

tocopherol in the unsaponifiable fraction have been reported to be more atherogenic as

compared to most crop species containing higher concentration of tocopherols.

Thus, the amounts of cashew to be incorporated and the economic feasibility in utilizing

for local diets need to be critically examined. Cardiovascular diseases which affect

individuals mostly around middle age are common among the more affluent. The use of


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small amounts of cashew nut in the diet could therefore be a deterrent in controlling

cardiovascular ailments.

f. Mineral ContentThe mineral content of cashew kernel appears to be minimal as compared to the higher

mineral content of the cashew apple, especially the high Vitamin C content (240 mg).

Most citrus species such as orange have only 45 mg of Vitamin C. However, the cashew

apple is yet to be utilized on a large scale to alleviate Vitamin C nutrition requirements in

the tropical countries where the crop is grown.

Cashew is also one of the few sources of phenols (contains about 60% of anacardic acid

by weight). This acid is responsible for the vesicative activity of the shell liquid extract

and can cause acute dermatitis. It is therefore essential to ensure that as little

contamination as possible of CNSL should occur during processing of kernels. In

traditional medicine however, this extract has been used successfully.

The high price of cashew kernels will certainly stimulate the planting programs in various

countries. Since the cashew nut market competes with other nuts, there is bound to be

increased production of all nuts. The present cost of processing cashew is much higher as

compared to other nuts which allow little flexibility in cashew kernel prices. It is

therefore necessary to develop more efficient and cost-effective processing systems for

cashew.

1.3: Major Players

The commercial production of cashew seed is done in more than 32 countries of the

world. The seed generally prosper in the hot and humid regions of the earth near the

equator like in central and South American zone, India and oceanic zone and African

zone. The world total produce in the context of cashews is around 22.5 lakh tons per

annum. Vietnam is the largest producer of raw cashew followed by India and Brazil.

India dominates and leads the cashew kernel production list. The total area in the world

under cashew cultivation figures up to 35.1 lakh hectares. The world consumption of


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cashew has ever been rising with time. In 1955 the world production figures for cashew

consumption was 125000 tons which rose up to around 1 million tons in 1995 and now it

is almost same as the level of production. The major cashew consuming countries in the

world are

United States of America European Union India

The trade pattern in cashew in the world suggests that 8 to 9 million cartons of cashews

are traded in the world in a year. The main countries that constitute the world cashew

exporting list are

India (4.5 million cartons) Vietnam (2.3 million cartons) Brazil (1.75 million cartons) Tanzania Ghana

India contributes to over half of the world cashew exports. Vietnam gives a tough

competition to India in the world market as it is the largest cashew producing nation of

the world but still India is ahead in this scenario. Vietnam plans to take over India's

dominance till 2010. Due to a large consumption level of this seed in the world, there is a

long list of cashew importing countries, dominated by United States. Following are some

of the major countries in that list

United States of America (4.5 million cartons) European Union (2 million cartons) China (0.75 million cartons) United Arab Emirates Japan


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1.4: Industry Size

Cashew is indigenous to South and Central America and was discovered by Portuguese

missionaries in the 15th century. There is a growing market for cashew in Europe and

USA, with new market opening up in the other parts of the world, for example, Russia

and Japan. On the other hand, Vietnam is currently increasing their supply of cashew nuts

for the international market.

Total area under cashew in the world is 30.54 lakh hectares with production of 20.34 lakh

tones in 2002-03. At present, Vietnam is the single largest producer (28%) in the world

production, followed by India (25%), Nigeria (10%), Brazil (8%), Tanzania (6%),

Indonesia (4%)(Samyukta Karnataka,2005). Cashew area and production in Asia during

2000 accounts for about 33.40 percent and 40.98 percent of global area and production

respectively. Cashew production takes place mainly in the Central and South American

Zone, Asia, Oceanic Zone and African Zone. There are 28 countries now involved in the

production of cashew.

The major producers of raw cashew nuts in Asiatic Zone are India (4.5 lakh tonne) and

Vietnam (1.4 lakh tonne). The total area under raw nut production is around 1.8 million

tonne from an area of 4.00 million hectares. The productive area is likely to be around 3.6

million hectare. The average global productivity is only around 500 kg per hectare.

The Asiatic and African zones together produce 1.256 million tonnes of raw nuts (68%)

of the global production, of which 0.338 million tonnes (27%) take part in kernel trade,

0.246 million tonnes takes part in raw nut trade and the remaining 0.72 million tonnes

(53%) goes for local consumption. The unprocessed raw nuts export amounts to 0.246

million tonnes mainly from India.

The cashew industry is an important foreign exchange earner for many African countriesand also a major source of jobs and income earner in rural communities. In Mozambique

alone, cashew growing and harvesting is a primary source of income for estimated 9.4

lakh poor small scale farming families. Among the African countries, Tanzania is the

worlds second largest producer of raw cashew nut. The other major export ers from Asia

are Indonesia and China. The major consuming countries of cashew kernels in the world


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1.6: Challenges faced by the Industry

The cashew industry is striving to become a major export of the country by 2020,

is the topic at the Vinacas International Customer Conference 2011 held by the Vietnam

Cashew Association (Vinacas) in Ho Chi Minh City. However, this goal seems,

according to many participants, an impossible mission.

Bottlenecks at input and commerciality

Vietnam was the worlds largest cashew nut exporter from 2006 to 2010. In 2010 alone,

Vietnam exported 198,000 tonnes of cashew nut worth US$1.135 billion, accounting for

more than half the worlds export volume. An official from Vinacas forecast that the

industrys export turnover was expected to reach US$1.4 - 1.5 billion in 2011,

representing a year on year rise of 30 percent.

At the conference, Vinacas announced the objective that Vietnams cashew industry will

retain the worlds number one exporter position through 2020. However, this target is

said to be unfeasible because the cashew industry is facing numerous difficulties. Mr.

Nguyen Thai Hoc, Chairman of Vinacas, admitted that biggest difficulties facing the

cashew industry now are the unstable supply source of raw materials for export

processing, and the shrinking cashew acreage, productivity and output. To ensure exporttargets, Vietnamese cashew nut processors have to import raw cashew nuts for processing

from other nations. The Vietnamese cashew industry is also facing a serious shortage of

labourers for shelling and processing, while manual workers account for 30 to 40 percent

in this industry. Whats more, products are not diverse, the domestic market is weak,

input costs are rising, technologies are backward, and business scales are small.

In Binh Phuoc province, dubbed the capital of the cashew industry, farmers are cutting

down cashew trees to grow crops with higher economic value like rubber trees, said Mr.Bui Van Thach, Vice Chairman of Binh Phuoc Province Peoples Committee.

Specifically, the province now has 155,000 ha of cashew trees, of which 144,000 ha are

at the stage of commercial production with an annual output of 140,000 tonnes. However,

he added that according to the cashew industry development strategy of this province for

the 2010 - 2015 period and vision to 2020, the acreage will be shrunk from the current


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155,000 ha to 150,000 ha in 2015 and only 137,000 ha in 2020. Attending specialists

pointed out that the cashew industry will be unlikely to achieve the target if it fails to fix

existing problems. Mr Luong Le Phuong, Deputy Minister of Agriculture and Rural

Development, said if Vinacas is unable to solve current difficulties, objectives for the

next 10 years may be out of reach. He explained that since deeply processed cashew nuts

account for only 3 percent of export volume, the target of 30 percent of deeply processed

cashew nuts will be a huge challenge if currently inadequate machinery and equipment

are not upgraded.

Mr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI),

said the economic value of cashew trees is not as high as that of other popular industrial

crops in Vietnam like coffee, rubber and tapioca; thus, it is not a surprise to see a decline

in acreage. This is a huge challenge for the cashew industry development strategy

through 2020.

1.7: Other major developments in the industry

India is one of the largest producer, processor and exporter of cashew in the world. It has

tremendous potential of production and marketing especially export to other countries. Itis termed as White Gold to describe its importance in the economy. Hilly region of

Kolhapur district and its environment is suitable for cashew production. The cashew has

significant importance in the life of hilly region people of this district. Thus, cashew-nut

industry can play very decisive role in the development of the hilly region. The Kolhapur

district is recognizing as a hilly region area district. The thousands of people are living

under poverty in the hilly area of the district. The suitable environmental conditions for

cashew cultivations are the natural gift for these people. The presence of cashew has

made strong positive impact on the life of the hilly poor people. The development of

cashew-nut industry in this region leads the socio-economic development of hilly area of

the district. Therefore cashew is the WHITE GOLD for the hilly people. The present

study will focus on the challenges and opportunity before the cashew-nut industry of hilly


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region area and explore the different means how the cashew-nut industry would become

the instrument of change in the development of hilly region people.


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2. Company Profile

2.1 Background and Inception of the Company:Bola Surendra Kamath & Sons is a prominent name in the field of cashew export

business. For more than half a century, Bola family from Mangalore is continuing its

export business throughout the world. In fact, this business was initially started when

India was under the British rule. Three brothers initiated the establishment of Bola

Surendra Kamath & Sons. These people were highly energetic as well as experienced.

They put hard labor in order to give their company the status of a global cashew nuts

supplier. Presently, Bola Surendra Kamath & Sons has acquired ISO 22000:2005

certifications. They are mainly associated with the cashew export business as well as with

the export business of coffee beans. They are acquiring popularity from across the world

for their quality products and customized services. There will be nothing wrong if we say

that in recent times, Surendra Kamath and Sons is considered to be one of the most

recognized cashew nuts and coffee beans exporters from India. For maintaining this

position they strictly follow world class Food Safety Management Systems and thus

ensure quality services to their clients.

Bola Raghavendra Kamath

He is one of the pioneers who introduced cashew industry in Mangalore. In early 1940s

Bola Raghavendra Kamath started cashew trading. Thereafter, in the year 1958 he took

initiative to set up a cashew factory in Karkala. Before this, no cashew factory was ever

established in the rural area. Soon, this cashew industry emerged as the top cashew

manufacturers in the state of Karnataka.

Bola Surendra Kamath

Bola Surendra Kamath studied B.E. in Mechanical Engineering from Manipal Institute of

Technology. He joined cashew industry thereafter. There will be nothing wrong if we say

that Mr. Kamath was one of the first technocrats to enter the cashew export business. In

order to bring positive changes in the cashew processing services, he introduced several

innovations. He also studied cashew industry related several government regulations. In


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the true sense, Bola Surendra Kamath ensured compliance of the regulations in our

industry.

Bola Damodar Kamath

Bola Damodar Kamath is an architect by profession. In 1994, he graduated himself from

the Manipal Institute of Technology, Manipal. Then he got involved with some

Government projects on contract basis. Mr. Kamath pioneered in small houses

construction at comparatively low cost for the poor people. Added to this, he also looked

after the construction work of a few Government buildings and office premises.

In 1996, Bola Damodar Kamath started his profession as a management trainee. During

that time, he undertook the job of marketing CNSL (Cashew Nut Shell Liquid). Within

the span of only 2 years, he succeeded to double the cashew nut shell liquid production of

the firm. He also contributed in the development of cashew export business and bagged

orders from one of the leading purchasers in Europe.

Bola Rajesh Kamath

Bola Rajesh Kamath has done his graduation in business management from Dr. NSAM

First Grade College, NITTE and in the year 1995, he joined his cashew export business.

Initially, Mr. Kamath took up the task of expanding the cashew industry. For this

purpose, he pursued institutional marketing and tried to keep direct relationship with the

top cashew consumers in the country.

Bola Rajesh Kamath was also associated with his firms financial matters. With his hard

work and unquestionable dedication, he succeeded to bring professionalism in the area of

his organizations financial management. Mr. Kamath also took initiative and introduced

inventory management and accounting. In the year 1998, he created a website to promote

his business enterprise. There will be nothing wrong to say that during that time, there

were very few firms who had their own websites.

Bola Rahul Kamath

In the year 1997, Bola Rahul Kamath did his graduation in Mechanical Engineering from

Manipal Institute of Technology, Manipal. He was a brilliant student and stood second in


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the university. Thereafter, Bola Rahul Kamath did his MBA from T.A. Pai Management

Institute, Manipal. In this examination also he secured the first rank. Mr. Kamath also got

certification in International Business from Saginaw Valley State University, Michigan,

USA. Throughout the student life, Bola Rahul Kamath maintained an excellent academic

record and so was honored with the Best Outgoing Student Award from the Manipal

Institute of Technology. Apart from this, Mr. Kamath has recently awarded for the Best

Outstanding Young Personality from the Jaycee. Finally, after completing study he joined

the cashew export business. Since then he got actively associated with cashew processing

services, new market penetration and direct marketing of products

2.2Nature of the Business Carried.The nature of business in this industry is varied and is challenging to any other industry.

Due to high diversification in the operation it is a strategic task and approach to the

nature or composition of resources to the nature of contracts demanded by different

clients. However one must understand that the nature of business is not just the nutshell

of the overall operation but also the opportunities of further diversification into the

respective areas.The unique coffee processing and packaging procedure highlights the

fact that Bolas never compromise with their product quality. With the aid of their state-

of-the-art facility near Mangalore, they have succeeded to bring a remarkable positivechange in the field of cashew export business.

At Bolas 90% of the entire workforce are women. All of their employees are trained and

they make sure that every bag of processed cashew comprises natural goodness. Usually,

while handling the procedure, all their employees wear protective gear.

The factory is situated at Karkala Taluk, which is approximately 30 kilometers away

from Mangalore port. There is no doubt in the fact that they are one of the very few

cashew-processing units in the country. For their quality cashew processing services and

cashew packaging services we are certified with ISO22000 norms. This confirms that we

have Food Safety Management Systems as per the best international practices.


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Access to some of the best coffee growing plantations and given to choose amongthem

Impeccable state-of-the-art infrastructure that facilitates the processing of largequantities.

Well planned supply chain. Customer centric pricing and procurement model. Various modes of packaging available. Above all, the trust of its renowned long term customers. Offer ready goods in store basis in major European ports Offer goods on price to be fixed basis on buyers call.

2.3Vision Mission and Quality Policy.Vision:-

To establish themselves as the most credible partner to their customers and to become an

emerging forces to reckon with in the Indian IT arena.

Mission:-

Bolas strives to enable their customers with timely, accurate and holistic businessinformation through innovatively simple IT solution offerings.

Bolas regard each opportunity as a great task entrusted on them and strive to makethe projects a thorough success

Bolas present a memorable journey for our customers in every engagement, whilemaintaining high levels of ethics and integrity

Quality Policy:-

The cashew nuts and coffee beans are checked thoroughly so as to assure their quality.

Their products are manufactured keeping in par with CEPCI and AFI standards. They use

blowers and sieves that help in keeping the microbiological and chemical contaminants

away. Then the metal detector is used so that ferrous and non-ferrous metals are not


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present. The final products are free from any harmful ingredients and are as per the

standards set by HACCP.

2.4Product / Service Profile.Sr. No. Product

1 Cashew

2 Coffee

3 Palm Oil

4 Runutz

5 Royal

Cashews

The Anacardium occidentale and the Cashew tree are considered to be the natives to the

northern side of South America. However nowadays they are also found in several

tropical areas. The English name "Cashew" has been derived from the Portuguese name

caju that has come from the Tupi-Indian word "acaju".

In Spanish speaking countries of Latin America cashew is called Maranon, whereas, in

Venezuela cashew is known as mere. It is said that viz (the state of Maranhao in the

northern part of Brazil) is one of the first areas, where this fruit was seen. Cashew is

considered to be a premier crop that originally belongs to Brazil and contributes a lot in

the rural economy.

The tree establishes itself easily and by men and animals may have increased its growing

area even in pre-historic times. It is likely that Spanish sailors have taken the nut to

Central American countries and certain that the Portuguese brought the cashew to their

territories in the East Indies and Africa. It may be assumed that cashew came to Goa,

Portugals main settlement in the East Indies at a time, between 1560 and 1565. It is

believed that the Portuguese brought the cashew to India, between 1563 & 1578.


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Presently people will find a number of companies that are engaged with cashew

processing services, cashew packaging services and cashew export business. Bolas is one

of such cashew nuts exporters.

After India it was introduced into South-Eastern Asia and, according to Agnoloni and

Giuliani (1977), it arrived in Africa during the second half of the XVI century, first on the

east coast and then on the west and lastly in the Islands. The cashew later spread to

Australia and some parts of the North-American Continent. Finally, its present diffusion

can be geographically located between 31 degree North latitude and 31 degree South

latitude, both as the wild species and under cultivation. Some make from the apples a

beverage, though the fruit itself is scarcely edible, having an unripe flavour. At the base

of the fruit hangs a sort of nut, with the shape of a kidney. As to the kernel therein, it is

excellent to eat.

Coffee

For the last few decades, Bolas has maintained its position as one of the renowned global

coffee exporters. It is relied upon by a large number of astute buyers. Bolas mainly store

coffee in warehouses in Europe and offer that same product to customers "In Store" basis.

This no doubt helps the customers to approve samples before placing their orders.

Bolas usually offer coffee on "Fixed Price" basis. The purchasers can fix the price at any

time on the basis of International Exchanges. Added to it, they offer different types of

coffee packaging services as per the customers requirements. Recently, for these

packaging services the Coffee Board of India commended Bolas with the Second Biggest

Exporter Award. Situated in the heart of the rich coffee growing country, Bolas has

proved its expertise from select plantations, aroma, rich taste to quality.

Palm Oil

Around three thousand years back, palm tree was originated in Africa. The oil that is

extracted from the fruit is known as palm oil, whereas, the liquid fraction of palm oil is

known as Palmolein. Since a long time, this Palmolein is popular for its safe use.


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However, after 1960, when Malaysia undertook its production, Palmolein started gaining

more popularity.

In the year 1984 palm oil got a remarkable position in the field of international export

trade in fats and oils. It is second only to the soybean oil production.

Palm oil processing and palm oil packaging services related different research works

were done in the laboratories in Australia, United States, Europe, Canada, Japan and

many other developing countries. The result of these activities were thereafter published

in different journals, such as, the New England Journal of Medicine, American Journal of

Clinical Nutrition, the British Journal of Nutrition, Nutrition Research, the Journal of

Lipid Research, Cancer Research and Artherosclerosis. Apart from this, the Malaysian

Palm Oil Promotion Council along with the Nutritional Advisory Committees for Europe

and America and the International Nutrition Advisory Council produced a number of

reviews on health and nutrition characteristics of palm oil.

For the biological value of carotenoids, the red palm oil could prevent vitamin A

deficiency. The tocopherol activity of palm oil has also a nutritional significance. It is

said that vitamin E can reduce the coronary heart disease related risks as well as the

possibly of cancer.

In some of the countries of Latin America, palm oil is used extensively for the purpose of

human consumption. In India, there are several shops that sell a huge quantity of

palmolein. Each year around 3000 tonnes of palmolein is being received from the India

Government, from which 1/3 is being sold through the fair price shops.

It is assumed that there are 2 reasons for which common men give more preference to the

palmolein rather than groundnut. These reasons mainly include price and health.

There is no doubt in the fact that both of these factors play important roles in the choices

of modern men. Nowadays not only price, but health also matters a lot to the consumers.

Thus with the rapidly changing choices of the customers, palm oil export business is

undergoing a remarkable change.


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R U Nutz

Taste of Cashew has never tasted so good. All the people who have tasted Bolas R U

Nutz" range of value added products have liked it. They offer a wide variety of exotic

flavors for their salted and typically roasted products

Some of the flavors Bolas offer include the following:

1. Honey Crunch

2. Chaat Twist

3. Tomato Frenzy

4. Blissfully Salted

Why Runutz

1. Exotic Flavour you have never tasted before

2. No added preservatives/no added colour/no Artificial Flavour

3. Dry roasted without using oil

4. Attractive and innovative packing to ensure freshness.

How to go Nutz

1. RUNUTZ has exiting flavour and is ideal snack to munch

2. Give children RUNUTZ and say "no" to just food. Put some in your children's Tiffin

every day and see the difference.

3. RUNUTZ is ideal to munch while watching TV or film.

4. RUNUTZ helps you fight the stress. If you have long working hours, take a break andmunch some nuts. It makes you feel full and energetic.


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2.5 Area of Operation

Bolas are exporting cashew nuts and coffee beans to 38 countries across the world. Their

products have been able to gain the trust of the honored clients. The cashew nuts and the

coffee beans are packed without using any preservatives. The taste, aroma and quality are

the features that encourage the customers to buy cashew nuts & coffee beans. Bolas

customers place orders in bulk that talk about the quality of cashew nuts and coffee beans

as well as their reliability

Their main motive has been always delivering genuine quality products. All workers

wear protective gear while handling the cashew nuts and coffee beans. As these are

agricultural products, extreme care is taken of the nuts and beans so that the final

products are free from all the contaminants and are safe to consume. The taste of cashew

nuts and the aroma of coffee beans are truly irresistible.

2.6 Competitors Information

The cashew market is been highly competitive with increase in number of cashew

companies. But bolas has been facing fair competition from the domestic companies

nearby Karkala and Mangalore area they are

S.r. No. Competitors Address

1 Mangalore cashew industries Mangalore

2 Costal cashew trading

company

Mangalore

3 Karkala cashew products Karkala

4 Aaco industries Moodbidri


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2.7 Infrastructural Facilitates

Bolas has a well-established infrastructure with all the necessary machineries. The cutting

machineries are hand operated so that the cashew nuts are grated carefully without any

damage to their shape. The research & development team keeps an eye on the quality of

the products and puts each and every minute innovation that is needed for the betterment

of the quality. Out of total workforce, 90% are women. They also have a spacious

warehouse, where the final packed products are kept for future exporting. The packing

are vacuumed so that there is no biological agent present in the final products.

Delivering quality demands an infrastructure that is contemporary and state of the art. At

bolas we recognize this fact and hence constantly strive to update our facilities where by

the quality is not compromised on. As one of the few cashew processing and packaging

companies in the country, Bolas are renowned for our modern infrastructure. Their

workforce, comprising 90% women, is provided with finest protective gear for safety as

well as to retain the natural goodness of the product. Their processing and packaging

facility is certified to have food safety management system in accordance with ISO

22000:2005 norms.

2.8 Achievement / Award

Some of the hall marks to bolas coffee business is:

Sr. No. Achievements & Awards

1 Coffee Exports Awards for the years

2005-06

2006-07

2007-08

2 Members of Federation of Indian Export Organization

3 State Export Excellence Award

2006-2007

4 Trading House recognized by Govt of India


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2.9 Work flow model (End to End)

Work flow model refers to the glimpse of the entire organizations working. The work

flow model gives an overall idea on how does the entire company organize itself andexecute its operation. It is through this model that one can see the key areas of operation

or the major roles played by each of the departments in the core activities.

Drying of cashews

Roasting

Cutting

Hot Chamber

Peeling

Grading

Packing


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2.10 Ownership Pattern

Bolas is presently a private ltd company. It was founded by Bola surenrda kamath andthere by the business is continued by 3 sons as partners. It is purely a partnership firm

Mr. Damodar Kamath Mr. Rajesh Kamath Mr. Rahul Kamath


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3. McKinseys 7 S Model

Mckinseys Model is famously known as the seven S model which comprises of the

following

Structure Skill Style Strategy System Staff Shared value

Lets look at each of the elements specifically

Structure: The way the organization is structured and who reports to whom.


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Style: The style of leadership adopted Systems: The daily activities and procedures that staff members engage in to get the

job done

Strategy: The plan devised to maintain and build competitive advantage over thecompetition

Skills: The actual skills and competencies of the employees working for the company Staff: The employees and their general capabilities. Shared values: Also called super ordinate goals when the model was first

developed, these are the core values of the company that are evidenced in the

corporate culture and the general work ethic.

Placing Shared Values in the middle of the model emphasizes that these values are

central to the development of all the other critical elements. The companys structure,

strategy, systems, style, staff and skills .The original vision of the company was formed

from the values of the creators. As the values change, so do all the other elements.

Strategy, Structure, and Systems can be considered as the hardware of the success while

Style, Staff, Skills, and Shared Values can be seen as the software. Companies in which

these elements are presents are usually more successful at implementation of strategy.

Structure

An efficient and effective formal organization is one which facilitates the contribution of

individuals to the attainment of enterprises objectives and aids the accomplishment of

objectives by people with minimum unsought consequences to cost.

Organization is regarded as skeleton prints of how the manager will assign the functions

and link them together. A sound organization contributes greatly to the continuity and

services of the enterprise. Organization is one of the fundamental functions of

management. It involves various departments of divisions, each performing a separate

function such as production, and distribution and so on in a coordinated manner.


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Procurement & supply of maintaining records Office and building maintenance. Various jobs assigned above normal working.Materials Department

Stores play a vital role in the functioning of the organization. All departments are in the

direct contact with the stores for their smooth functioning. The most importantfunctioning of the stores is that to provide regular service to production and other

department for their continuous smooth operation. Maintenance of stores and its handling

should be given importance because investment made in stores is huge and articles

worth lakhs are kept in stores .A systematic and proper control of store keeping

functioning are essential for ensuring discipline ,availability of articles at required time

adequate storage in store keeping records.

Major functions of stores department are

Receiving of material and recording of receipts. Arranging inspection and proper storage and preservation of receipts. Issue of storage items to user departments Preparation of various report

Materials

Stores Purchase


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Receipt and inspection of materialThe raw material are received from two sources, that are

1) Receipt from external sources Receipts of material from the outside suppliers .rawmaterial are received against the orders placed or by local purchase from local

vendors.

2) Receipt from internal sources Raw materials are received from the consumerdepartments where the item maybe of no use

Strategy

Every organization formulates and follows a set of strategies which are decided by the

top management. Some strategies have a higher privilege or rather say are of more

importance.

Managerial strategies

Various managerial strategies are adopted by Bolas to maintain the efficiency and

productivity. First of all selecting the best available technology of a plant, it is necessary

to maintain the high standard of operating efficiency on day to day bases by monitoring

and control of various parameters affecting the plant efficiency.

The parameters affecting efficiency in process plants are:-

Loss of materials at various process stags starting from material receipt to productreaching destinations which needs to be identified quantified and prevented.

Capacity utilization Plant operation and process control. Cost reduction progress Quality control systems Energy efficiency Maintenance management practices Waste reduction Resources conservation and Re-use Environment and safety management


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At Bolas the above parameters are monitored on day to day basis through daily

production meeting at their separate plant as an essential management function.

Out of the above parameter one parameters i.e. Cost Reduction Programs taken as an

example of strategic management style for the specific paper. Bolas has been able to trim

cost wherever possible to maintain low cost of production and achieve better efficiency in

the process. In fact this aspect cover most of the others control parameter also.

System

System refers to the rules, regulation and production concept both formal and informal

that complement the organization structure. Here bolas follows the informal and legal

procedure in taking the orders from the customers. For the regular interaction with sub-ordinates and line persons, the company people go for both formal and informal

interaction. Lean manufacturing is the identification and removal of waste. There are 5

types of wastes in manufacturing firms, which increases the need for working capital.

The 5 types of wastes are:

Over production Processing time Defects Inventory Transportation

Cashew Processing

Stage 1

Drying

Raw cashew nuts are properly dried in order to remove excess moisture. These raw nuts

are usually kept in open yard and are dried in sun for 2/3 days. The nuts are rolled over

on regular basis in order to ensure both sides drying. After this procedure is over, the

dried cashew nuts are collected and thereafter packed in bags for the purpose of long

storage. Bolas is one of the popular cashews processing services provider, which follows

the same procedure for drying the cashew nuts.


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Stage 2

Roasting

The second stage of processing is Roasting, Here, they heat the cashews with high

pressure/temperature steam. The roasting time depends upon the characteristic of raw

cashew nuts

Stage 3

Cutting

Raw cashew nut has a unique kidney shape. Moreover, the outer shell of raw cashew nut

is very hard to crack. The shell contains a liquid called CNSL, which can be very

dangerous if not properly handled.

Bolas use a specially designed hand and leg operated cutting machines to cut raw cashew

nuts. The operations are predominantly manual. The raw cashews are carefully cut to

ensure that, there are minimum broken

Stage 4

Hot Chamber

In this stage, cashew kernels are heated to 70-85 degree centigrade. The main purpose of

this heating is to eliminate moisture between cashew kernels and adhering test. They use

a specially designed chamber to heat the cashews so that, the temperature control can be

attained accurately.

Stage 5

Peeling

Cashew Kernels are blanched using a small knife. The adhering test (husk) is carefully

removed ensuring minimum damage to the cashew kernels. Due to unique shape of the

cashews, the process is mostly manual.

Stage 6

Grading

Cashew Kernels are graded according to their size, colour, appearance etc. There are


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more than 25 grades of cashews. These grades are standardized by CEPCI

Stage 7

Packing

Bolas offer a wide range of cashew packaging services in order to cater to the needs of

the various customers. Some of their packaging options include the following:

Bulk Packing

2X25 lb flexi pack per carton

1X50 lb flexi pack per carton

2X10 kg flexi pack per carton

1X20 kg flexi pack per carton

2X25 lb tins per carton

2X10 kg tins per carton

Bolas also offer various range of packing sited to varying needs of the consumers. They

offer following packing options

Retail Packing

500 gm per pouch

250 gm per pouch

Staff

Every organization needs to have an efficient workforce and has to select the right person

for the right job. Every organization differs from other. Development and maintenance of

adequate manpower with needed skills and growth potential depends upon the nature of

selection, methods employed, procedures adopted and the efficiency with which they are

administered and executed. It is the major step in the staffing process. According to

Yoder It is a process to discover the sources of manpower, to meet the requirements of

the staffing schedule and to employ effective employees for attracting that manpower in

adequate numbers to facilitate effective selection of an effective workforce. In Bolas

there are nearly 150 workers. In which Each worker has unique capability to the job


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perfectly and they are specialized in one or the other area. In bolas each department has

been divided into separate teams. And they have specific targets which they must

complete within a stipulated period of time.

Skill

Communication is considered as the life blood of business. Bolas follows a different

communication pattern. Few years ago, the bolas used to follow the formal

communication channel wherein the interaction would be from top to bottom. But in

recent years the informal chain of communication has been gaining importance.

Nowadays majority of the companies follow the two way communication style. Any

employee can directly talk to the departmental head or any other employee without a

barrier. Every organization follows a authority responsibility principle which is of utmost

importance in this modern world and also the main aspect of the organization. As the

responsibility is delegated, some respective authority is also delegated along with it so

that smooth functioning of the business takes place. So by using informal communication

pattern bolas has been successful in functioning the business smoothly. Bolas also gives

onsite training to the employees in order to do the work properly. Focus of the system in

the company would be to promote teamwork and culture, achievement and excellence in

the organization.

Style

Style is nothing but an organization culture, development of which is continuous and

improving each year. The employee shares a common way of thinking and behaving in

an organization. They give due respect to women. Employees are very professional in

their dealings. The Managers go for achievement of organizational goal, motivation to

subordinate and quality of the work. The culture followed in bolas is open culture where.

The superior acts on the criticisms. Superior listens to complaints. Superior follows up an

employee opinion. The style of functioning of bolas is open and participative.


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Shared value:

In bolas workers share the same guiding values. Values are things that one strives for

even if they were demonstrably not profitable. Values act as an organizations conscience,

providing guidance in times of crisis. Identifying corporate value is also the first step in

defining the organizations role in the larger community in which it functions. Shared

values are what provoke trust and link an organization together. Shared values are also

the identity by which an organization is known throughout its business areas. Thus values

must be stated as both corporate objectives and individual values. Every organization and

every leader will have a different set of values that are appropriate to its business

situation.

Shared values are Mutual respect, unity and excellence

Mutual Respect Ever ready and flexible to the customers need Commitment, dedication and persistence Customer focus through Excellence Synergy


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4. SWOT Analysis

SWOT Analysis Framework

Strength

Highly skilled labor in all steps of manual processingBolas has high skilled labor in all 7 stages of manual processing of cashew as well as

coffee and other products. In bolas more than 90% of the labors are women and each

labor is highly skilled in a particular process of production. This helps bolas in achieving

high productivity along with good quality of products. And there will be very less

chances of damage. And it also helps in making the production faster.

EnvironmentalScan

InternalAnalysis

Strength Weakness

ExtenalAnalysis

Opprtunity Threats


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High quality cashew nutsBolas import cashew from African countries so this makes their quality of cashew to be

high. By importing cashews this makes them to cut off their one process of production

i.e. drying because its been already dried. This makes them to produce high qualitycashews and also give tough competition to competitors

Tremendous growth of processing capacity in a matter of very few yearsBolas growth has been tremendous over the last few years. Before bolas used to go

through the processing manually. But as time passed they started using machinery which

made their processing capacity to grow.

Use manual cutting technology usually result in better qualityBolas apart from using machinery for processing they also use manual cutting technology

which results in better quality i.e. because the whole process of cashew cannot be done

by machines some process needs to be done manually i.e. the shell of the cashew will be

hard and also because of the unique shape of the cashew it becomes difficult for them to

use them through machines so this process is being done manually which results in better

quality.

Effective distribution of work in the companyIn bolas the distribution of work is being done effectively. The main purpose for their

success is there will be informal communication between superiors and subordinates.

This makes the subordinates to communicate freely with the superiors. And regarding

distribution of work each individual will be assigned a particular task and their target will

be to complete it with the stipulated time.

Weakness

Shortage of domestic cashew production to fulfill processing capabilitiesThere is a shortage of domestic cashew production because cashew is facing tough

competition from rubber so most of the people are shifting their business from cashew to


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rubber. This is why bolas is having shortage of domestic cashew to fulfill processing

capabilities. And thus they go for import of cashews so by this cost will increase.

Dependence on imported cashewsDue to the shortage of domestic supplies of cashews bolas depend heavily on import of

cashews from African countries this is one of the weakness of bolas. In future if there is

hike in import duty than bolas will face huge loss.

Opportunity

Further market development for byproductsBolas has market development for byproducts because its main business is cashew

production and in this business there no such thing as waste. Each and every part of

cashew is useful for one or the other thing and the byproducts comes from cashew is

useful to make oil i.e. after processing stages the waste of cashew will be given to extract

oil from it. And after that those waste are being brought back to bolas for using them to

heat the cashews.

Employment opportunitiesThe industry provides a great number of jobs in very poor areas where no other

opportunities are to be found. Thousands of jobs, local economic development near thefactories bring tremendous social impact to the lives of many. Thus, the opportunity to

commercialize and sell the cashews as an activity that is socially responsible and that

contributes to alleviate poverty.

Increased incomeIncrease in income may increase demand for better nuts.Thus augmenting market

potential. Bolas not only produces cashews it also has products such as RU NUTZ,

Coffee, Royal, these products can be suitable for people who demand for better products

so this can be an opportunity for Bolas.


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Threats

Unstable and unpredictable weatherOne of the main threats to bolas is the weather which is unpredictable. One of the main

processes of cashew is drying and it is the first process in production of cashew. The

cashews must be dried for 2-3 days if it rains then the cashew will spoil. So it is one of

the main threats to bolas.

Labor constraints for both processors and producersLabor constraint is also a main threat for bolas. Bolas gives on sight training to the

workers and 90% of the workers are women in bolas. After giving training the workers

will work for some period of time then they will leave the organization so this will be a

main threat for bolas.

Price fluctuationsPrice fluctuations are causing farmers to switch to rubber cultivation. Cashew farming is

considered to have a lower social status compared to rubber production, so there is less

incentive to invest in upgrading.


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6. Learning Experience

The In-plant training of four weeks gave practical insight to the working of the

organization. The 7-S framework of McKinsey is a Valued Based Management (VBM)

model helps in understanding how bolas is holistically and effectively organized and how

it operates accordingly.

Just as they say practice makes man perfect. Some of the key understandings include that

without the theoretical background of the concepts understandings and working in the

complex industry is difficult.

Some of my learnings can be listed below as

1. Logistics and Stores DepartmentIn bolas they taught how to account the value of stock, physical stock taking, verification

of stock, stores management, vendor price comparison, determining stock levels,

Purchase order and delivery chalan verification.

2. Operations DepartmentIn operations department the take home experience was Classification of grades and their

responsibilities, Production schedule, Wastage management and Production management,

Workforce management

6.1: Lessons got from the company:

Commitment:We have to be committed to continuous improvement of all our activities. We have tosupply products and services that conform to highest standards of design,

manufacture, reliability, maintainability and fitness for use as desired by our

customers


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Time Consciousness:For every company, success depends on its ability to continually reduce the cost and

shorten the delivery period of its products and services. It will achieve this by

eliminating waste in all activities and continuously improving all processes in every

area of its work.

Innovation and CreativityThe success of every company is in the improvement in every activity involved in the

business by pursuing and encouraging risk-taking, experimentation and learning at all

levels within the company with a view to achieving excellence and competitiveness.

Trust and Team Spirit:Achieving harmony in work life through mutual trust, transparency, co-operation and

a sense of belonging, which may strive for building empowered teams to work

towards achieving organizational goals.

Respect for The Individual:We have to treat each other with dignity and respect and strive for individual growth

and realization of everyone's full potential. This will ultimately lead to higher

productivity.

Integrity:We have to be commitment to be honest, trustworthy and fair in all our dealings. We

must commit to be loyal and devoted to the organization. We have to practice self

discipline and own responsibility for our actions. We must comply with all

requirements so as to ensure that the organization is always worthy of trust.


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Be Updated:We must be updated in new technology and other areas of our work. Being updated in

knowledge is better to avoid obsolescence.

6.2: Work Profile

The role given to me in Bolas during the period of In-plant training was as follows:

To visit each and every manufacturing shops to get the first hand experienceabout the production process and to interact with the shop heads for further

details.

To understand the organizing, directing and controlling functions of subordinates.

To understand the material handling process in the plant To know about the customers and suppliers Constant observation of works in plant and frequent visit to the factory, etc.

Conclusion

Study covered a period of 4 weeks during that period it was found that all the practice

and procedure followed at Bolas were at par with the industry standards and they comply

with the legal rules and regulatory requirement. In spite of the local production of cashew

in the country, the Bolas still import cashew from other countries in the form of shelled

cashew, cashew nuts (prepared/preserved), and nuts mixed with sugar or honey as

confectionery. The continuous importation of cashew products in foreign markets only

shows that there is demand gap that the cashew producing regions can fill in the local

market.


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Bibliography

Website

www.bolasindia.com www.bolas.co.in www.bolasintelli.co.in
http://www.bolasindia.com/http://www.bolasindia.com/http://www.bolas.co.in/http://www.bolas.co.in/http://www.bolasintelli.co.in/http://www.bolasintelli.co.in/http://www.bolasintelli.co.in/http://www.bolas.co.in/http://www.bolasindia.com/


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full final report to submit

Documents