“Internship Report at Sagar Trading Company Dharwad”

By

Triveni Rudrappa Itnal

09SJCCM035

The HOD

Ms. Muktha

An Assignment Submitted in Partial Fulfillment of

the Requirement for the Degree of

M.com

July 14, 2010

Department of Commerce

St. Joseph’s College of Commerce (Autonomous)

Bangalore -560 025

PREFACE

The purpose of this report is to fulfill the internship requirement for the Master of commerce

degree in St. Joseph’s College of Commerce and to explain what I did and learned during my

internship period with the “Sagar Trading Company” Dharwad. The report focuses primarily on

the assignments handled, working environment, successes and short comings that the intern did

encounter when handling various tasks assigned to her by the supervisor.

Because the various parts of the report reflect the intern’s shortcomings, successes, observations

and comments, it would be imperative that the recommendations are also given. Therefore the

report gives a number of comments and recommendations on the internship programme.

DECLARATION

I, Triveni R Itnal, a student of SJCC Bangalore here by declare that this internship report

titled “An Internship at Sagar Trading Company” has been completed only by me as part of

summer internship project. I have not submitted this report in any other university or institution.

Date: - Triveni R Itnal

Place: - (09SJCCMO35)

TABLE OF CONTENTS

Acknowledgement

Introduction

Profile of the organization

Learning Objectives

Summary and Findings

Comments/Suggestions

ACKNOWLEDGEMENTS

I would like to acknowledge the following people for their support and assistance with this

internship. From the Sagar Trading Company, Dharwad I would like to thank my immediate

supervisor sir Kashiram Koshthi for allowing me to take on the additional job duties of this

monitoring project and Sagar Koshthi Manager, for his many contributions to this report. I would

also like to thank my Guide Ms. Muktha in assisting me through the internship.

INTRODUCTION

Sagar Trading Company is located in Dharwad as one of the major suppliers of Red Oxide in

North Karnataka region. It is owned by sir Kashiram koshthi who is in this business from past 16

years and shares 55% of market with others.

Company stared with a single product, that is micro fined red oxide and established it self in the

market as Nandi Brand. Nandi Brand is known for its standard quality and price. Sagar trading

company is runned by a sole proprietor with one labor. It has got over 24 lakh turn over per

annum and is developing further. It is a type of business which is running with very minimum

cost of capital but making huge profits.

The whole idea of starting the business was taken by the proprietor from his last Job, from a

red oxide company where he was working as sales representative. One bad experience learnt

there was splitting up of the business by the relatives of the owner and development of new

brands in the market. This experience has given the chance to Mr. Kashiram Koshthi to start his

own business.

It is an emerging enterprise and can be developed further through its brand name, which is

well established in the market with a basement of 16 years of time. It can be diversified as it has

Capital as well as Brand name in hardware & paint industry in north Karnataka.

COMPANY PROFILE

Sagar trading Co (Nandi brand) is a well known company for its red oxide product in north

Karnataka. It was started in 1993 by Sri Kashiram Koshthi as a small enterprise where micro

fined red oxide was repacked and sold. Initially it was difficult to promote the product in the

market. The key technique used was personal selling by the entrepreneur. By the end of 1996 the

turnover of the company reached to 1 lakh rupees. A major area where the client base is settled is

Haveri, Shimoga, Uttar Kannada, Bijapur, Bagalkot, Belgaum, Gadag and Chitardurga.

Company diversified into paint business in the year 2004(laxmi paint).

It progressed in its business due to good personal relationship with its

client and best service. Nandi brand is a standard product in the market. It covers 55% of the

market. Later it diversified in color red oxide (Yellow, Green, Blue, Pink, Orange) Black oxide

and 2 more types of Red oxide.

At present it has 24lakh turn over per annum and is planning to diversify in paint and hardware

business. Sunny, Sanco, Shine star paints, Asian, Berger, Tiger are some of the major

competitors.

LEARNING OBJECTIVES

To study how red oxide is utilized as a component for flooring.

To know the advantages &disadvantages of Red Oxide over other products like Tiles,

marble... etc

To learn about the Marketing and pricing strategies.

To know the technical aspect of mixing varieties of Red Oxide by which it is

differentiated.

To know the Capital required and basic amenities to start a business in Red oxide.

To analyze the product and its market standing compared to other products.

To predict Red oxides future growth and development in the firm.

To have an exposure to the corporate world.

To experience in client interaction and learn presentation skills.

To enhance leadership qualities and discover myself.

To meet the firms requirements and deadlines.

DISCUSSION

I was working under a sole proprietor (Sagar trading company Dharwad), therefore experienced

all the aspects of the business and about its client base. I worked from 14 of April to 25th of May.

It was good experience; I could learn a lot and understand many things. Majorly what we

(students) have studied these many years develop our basic knowledge to think and react to a

situation. The real application is a mixture of circumstances and our learning. (The percentage

may differ)Red oxide is an economical product for the low class people and lower middle class

people. It is used for flooring which is extracted from rock.

Production and packing

Red oxide is ordered from three different dealers and stored. The colour pigments are ordered

based on requirement. Major production is of red oxide. It is produced by mixing 3 different

variety of micro -fined red oxide in a proportion.

Black oxide is ordered and packed raw.

Colour oxide (based on colour) is made based on the requirements.

Paint is ordered from Chennai on whole sale basis and is sold to retailers.

Oxides are available in 0.5 and 1 kg packets.

Labour

Only 1 labour works who is solely trusted. He mixes the required amount of red oxide and packs

it. Paint comes in tin and already packed.

The worker is under paid but has got opportunity of working on contract basis where he gets paid

based on the quantity of packing done. (Only at the time of high demand)

Marketing

Most of the marketing you can say was already done by the proprietor himself initial 5-6 years. It

was personal selling. Later it improvised based on word of mouth. Time plays a key role here as

to establish the market and managed to develop the product along with quality and service.

Demand of the product by the people has also influenced .As (Nandi Brand)

is recognised in the market as standard product. Verification is done regularly to the retailers

personally as a visit for collecting long due payment.

Demand

Demand for the product in the market is 55% which is major among all other competitors. As the

product is nor very cheap or costly and is economical, price and quantity wise. Major portion of

the order is received from Haveri district.

Administration and management

Administration and management is done by the proprietor himself which includes

Receiving the orders on phone.

To check the stock.

Maintaining records.

Drafting bills and receipts.

To call the transport.

Looking at packaging and delivery.

Sending the concerned receipt to the retailer.

Research and development

Research and development part is kept on hold as the proprietor is waiting for his son to finish

his education and join the firm. It would be done in hardware and paint sector.

Funds

Funds are available in hands of the firm. Business is done on credit basis and amount is collected

as a lump sum personally, DD or cheque.

Accounts

All the records are maintained in the respective registers in single entry system. A Chartered

accountant is approached at the end of each year for clarifications and preparation of balance

sheet. Accounts are maintained manually, system and on personal basis.

Transport

There mainly 3 types of enterprise used for transport.

VRL-(vijyanand road lines) most of them

SRS- for Haveri district

Gajanan – for local market (Hubli & Dharwad…. Cheapest and low quality)

PROPRIETOR

LABOUR

Clients

Most of the clients are retailers of hardware and paint situated in different locality of north

Karnataka. Haveri, Shimoga, Uttar Kannada, Bijapur, Bagalkot, Belgaum, Gadag and

Chitardurga are the major districts were clients are situated. Clients place order over phone and

delivery is done on time.

Suppliers

Major suppliers of red oxide

Delhi, Ankleshwar (Gujarat), Pune and Bangalore

Stationery: - All stationery and packaging material is ordered from Bangalore

Laxmi paint is ordered from Hyderabad based on wholesale basis.

Organization chart

MIXING PACKING CLIENT

ODER IS RECIEVED

PACKAGING IS DONE

DELIVERY

TRANSPORT

The Company is well established and is functioning smoothly. It is presently running without

any developments.

I was working as assistant to the proprietor in the firm. My work included receiving the orders

and making sure delivery is done. Orders were received from the clients over phone and I asked

if any other requirement is there. (To ask about other products if required like black oxide). I had

to note down the order on the order form. Communicate the order to the worker and have a check

on the stock.

Make entries in the system and prepare the bills according to the order’s given. Get the bill

signed by the proprietor and put official stamp and date.

Once the packing and sealing of the boxes is done by the worker, I am required to call the

transport and book. 4 Invoice copies have to be prepared. 2 copies are provided to the transport

company along with forwarding note. One copy is used to maintain company records. Once the

goods are sent LR copy has to be collected from Transport Company (which was done by the

proprietor). 4th copy of invoice along with the LR has to be posted to the dealer. (LR is required

by dealer for collecting the goods).

A change in the transport payment was made during my intern it was made “TO PAY”; transport

charges will be bourn by the clients. Payment of transport cost by the clients created a little

problem and few refused also. We were able to convince them that it will be paid by them as the

price of the product is not hiked.

Then the sales register had to be filled and the copy of invoice has to be filed. Next the

confirmation of delivery of goods had to be done over phone. The credit of customer’s had to be

checked and remind them about their payment which is due from a long duration. There was no

inventory system or records were maintained in the company. Inventory was checked based on

what the worker says is available in the Godown.

Paint is also ordered by the existing customers, which is based on the season. Season for paint is

in diwali and spring time. Paint covers only 20% of total sales.

Most of the information is orally said to the proprietor and he react’s accordingly. No

records are maintained. There was a case filed on the company regarding, there was no customer

care number for the product if any problem is faced by the consumer. A customer care number

was provided (proprietor’s personal cell number) on the packaging of the product.

Technical aspect

Three proportion of cement should be mixed with one portion of red oxide for flooring. For

different color the respective color pigments were added. There is a lot of chalk powder in which

the firm has invested. It is left idle in the stock and no decision is taken or likely to be made

regarding it. But at last, decided to sell the chalk powder to a whole sale dealer at a précised

price.

Plans were made to produce Ready made red oxide. It is produced by mixing the red oxide with

cement and selling. It has to be executed keeping in mind the demand for it. The major problem

faced was to maintain stock which has to be cleared within 6 months or else it is ruined.

Conclusion

The proprietor is still running the business by himself as he had the experience of business

splitting in the company where he was employed. The proprietor is satisfied with his present

performance and is not interested in enhancement of business. No extra efforts are being put.

Company is progressing due to its strong establishment in the market. There are many

ventures and opportunities for the firm to grow and develop it self. It is now easy going business

and only has to retain the present market.

SUMMARY AND FINDINGS

Proprietor has understood the business thoroughly and makes most of the decisions.

Proprietor’s knowledge about Red oxide is from working in a red oxide company as sales

man for Uttar Kannada region for 5 years.

It needs minimum capital of 2 lakh to start a new business. Difficulty is in establishing

the market.

There is mutual trust between the proprietor and his clients which has strengthened the

business.

No emphasis is given on book knowledge but rather personal experience is taken into

consideration.

Firm is working at 100 % capacity and needs development and diversification.

The quality of product is hidden in the proportion in which different type of red oxide is

mixed to form the end product.

Red oxide is the cheapest and affordable, it adjusts with the whether condition.

Pricing strategy used is optimal profit. If any hike in the market price then that hike

margin is covered in 4 to 6 months consecutively which created more market. Nandi

brand was available at a cheaper rate.

It will be more costly to produce ready made red oxide as it will generate less demand

compared to only red oxide. ( transport cost of cement and purchasing of cement is costly

and will increase the price where as buying directly from retailer is cheaper of

consumers)

Red oxides are ordered from Ankleshwar, Delhi, Pune and Bangalore.

Further diversification has to be done in the business as red oxide being out dated. Firm

can invest into new ventures in coming years.

COMMENTS/SUGGESTIONS

Proper research and records should be maintained for progressive report.

A full time accountant should be there.

Sales representatives to be maintained for various regions.

Production has to be increased by increasing the fixed and variable assets.

Firm needs strong infrastructure.

New techniques of marketing should be adopted.

Uncovered areas to be covered and try spread the area of market.

Red oxide is famous near coastal regions so to concentrate on it. (Mangalore region)

Profits to be ploughed back for expansion and growth.

Red oxide can be marketed to the government contractors for further and fast

development.

Over utilization of resources is being done.(labor)

Try to deviate on other aspects of red oxide and its usefulness

Paints: Single largest pigment used in paint industry, used in every type of paint, primer, powder, coating etc.

Tiles & Ceramic Industry: Natural red oxide is the first preference as pigment in tiles, floor tiles, flooring products, ceramics, pottery and others, it is commonly used with cement for flooring with red color.

Plastic And Rubber Industry: Use natural red oxide for coloring; they also use synthetic red oxide powder.

Red oxide primer

In this way firm can start production and can see future profits and development of Sagar

Trading Company