1

S.A.V ACHARYA INSTITUTE OF MANAGEMENT STUDIES (SHELU)

2014-2015

SUBMISSION OF SUMMER INTERNSHIP REPORT

ON

“AN ORGANISATIONAL STUDY OF

PRIVI ORGANICS LIMITED,MAHAD”

SUBMITTED BY: DEEPAK.M.SALUNKE

CLASS: THIRD SEMESTER MMS

EXAMINATION SEAT NO: 14

SUBMITTED TO:

Prof. SAUMYABRATA NATH

2

S.A.V. ACHARYA INSTITUDE OF MANAGEMENT STUDIES Shelu,karjet,raigad-410101

DECLARATION

I, Deepak.Mahadev Salunke hereby declare that this report titled “AN

ORGANISATIONAL STUDY OF “ PRIVI ORGANICS LIMITED,MAHAD” in the

partial fulfillment of the requirement of the award for Master in

Management Studies to The College “S.A.V. Acharya Institute of

Management Studies” is my original work and not submitted for award

of any degree or diploma fellowship or for similar title or prizes.

I further certify that I have no objection and grant the right to S.A.V.

Acharya Institute of Management Studies, to publish any chapter /

report if they deem fit in Journals / Magazines and newspapers etc.

without my permission.

Place: Shelu Name: Deepak.Mahadev Salunke

Date: Class: MMS, Sem-III

Roll No: 14

CERTIFICATE

3

This is to certify that the dissertation submission in partial fulfillment for

the award of Master of Management Studies of S A V Acharya

Institute of Management Studies is a result of the bonafide research

work carried out by DEEPAK MAHADEV SALUNKE, under the

supervision and guidance of Prof. SAUMYABRATA NATH. No part of

this report has been submitted for award of any other similar titles or

prizes. The work has also not been published in any Journals/Magazines.

____________________

(KRISHNA PAWAR)

( MANAGER (IR&ADMIN)

_____________________

(Prof. Saumyabrata Nath )

ACKNOWLEDGEMENT

4

I would like to give special acknowledgement to SAUMYABRATA NATH of S.A.V. Acharya Institute of Management Studies for his consistent support and motivation.

I am grateful to Prof, Saumyabrata Nath my report guide, S.A.V. Acharya Institute Of Management Studies for their technical expertise, advice and excellent guidance. They not only gave my report a scrupulous critical reading, but added many examples and ideas to improve it.

I am indebted to my other faculty members who gave time and again reviewed portions of this report and provide many valuable comments.

I would like to express my appreciation towards my friends for their encouragement and support throughout this report.

Date: Signature

DEEPAK MAHADEV SALUNKE

TABLE OF CONTENT

5

Chapter

Number

Chapter Name PAGE NO.

0.1 Executive summary 6

Chapter-I

1.1 Introduction 7-8

1.2 Objectives of the study 9

1.3 Importance 1.4 Mission and vision

1011

Chapter –II 2.1 Company profile 12-21

2.2 Functions of Department 2.2.1 Finance dept. 2.2.2 marketing dept. 2.2.3 HR dept. 2.2.4 production dept.

22

22-23 24 -26

27-29 30

2.3 Research methodology 31

Chapter –III 3.1 Company Product/Services 32-33

Chapter -IV 4.1-CSR Activity 34

Chapter -V 5.1 SWOT Analysis 35-37

5.2 Annexures 5.3Conclusion

38 39

Chapter-VI 6.1Bibiography 40

6

Executive Summary

During my internship project form PRIVI ORGANICS LTD, MAHAD , I investigated opportunities where nanotechnology could be effectively used. If a technology strategically fit the company’s technological and business objectives, I recommended ways to integrate and commercialize it. The technologies I investigated were at various stages of development: Some are available today, but others are one to two years away from being commercially available. This report describes introduction of privi organics ltd, compay profile, product and services of company , function of department and CSR activity of a company and all those things.the performance of existing tools or aid in the development of a new generation of tools at privi organics ltd ,mahad.

Small businesses are the heart of the market-based economy with their business operations in rural and urban areas of developed and developing countries. small business enterprises are playing a significant role by contributing to the production and services, employmnet and thereby to GDP. But these are found to face servere competition and different types of constraints.

Obstacles to growth include enterpreneurship development and growth,francising small business, lack of educated and skilled human resources, frequent cyclones and floods, inefficient state-owned enterprises, mismanaged port facilities, a growth in the labour force that has outpaced jobs, inefficient use of energy resources (such as natural gas), insufficient power supplies, slow implementation of economic reforms, political infighting and corruption. According to the World Bank, “among most significant obstacles to growth are poor governance and weak public institutions

This report is divided into many sections. all Section will explain in detail.

7

Intoduction

'Breathe Easy & Live Easy Environment'Privi Organics is one of India's leading manufacturer, supplier and exporter of aroma

chemicals.

Privi started manufacturing aroma chemicals in the year 1992 with only two products, which it gradually expanded to a range of over 50 products today, having a capacity of over 15500

tons per annum. Privi also develops and produces custom-made aroma chemicals as per specific requirement of the customer. The research specialists at in-house R&D centre

continuously thrive to develop new products and processes.

Privi has two state-of-the-art integrated manufacturing facilities with capability to perform various critical reactions like; hydrogenation, condensation, gregnard reactions, pyrolysis,

reactive distillation, high vacuum distillation, continuous distillation etc. and deliver consistency in odor and other key parameters in an industry driven by stringent olfaction

standards.

With an installed capacity of ~15,500 TPA of aroma chemicals, the Company enjoys a dominant position and economies of scale in its product categories.

Privi's world-class products is the result of its very strong R&D team that has proven expertise in developing new products, customizing odor as per customer requirements,

scaling up products from basic research to commercial scale, and designing process improvements to drive quality and cost optimization.

The research efforts are facilitated with an advanced research infrastructure comprising of two well-equipped R&D labs, each of which are recognized by the Department of Scientific

and Industrial Research, Ministry of Science and Technology, and a hi-tech pilot plant. Supported by a strong R&D team, Privi has been able to develop some high-margin key

aroma chemicals that have good growth prospects in the fragrance industry and have established their market viability through extensive market studies.

Importantly, one of the R&D labs is completely focused on developing Green Products and Green Technologies in technical collaboration with UICT (University Institute of Chemical Technology, Mumbai) through biotechnology. This only goes on to highlight Privi's concern and involvement in preserving environment without compromising on quality of its products.

8

The Quality Management System (QMS) of Privi Organics have earned the ISO 9001:2008 certification followed with ISO 14001:2004 certification for its Environmental Management

System (EMS).

Privi Organics has recently been also conferred with BS OHSAS 18001:2007 standard Certification Accredited by NABCB (Occupational Health & Safety Assessment Series) for

all Manufacturing Units in Mahad from Bureau Veritas.

Over the past 20 years, Privi has maintained an impressive average annual growth of more than 30%. This has been possible due to relentless drive to deliver exceptional value to our

customer in terms of product, pricing and service.

Privi Organics, being an environment-conscious and eco-friendly aroma chemicals producer, meets the Maharashtra Pollution Control Board (MPCB) BOD and COD norms at its Mahad plant. Significantly, its BOD and COD of the discharge effluent are the lowest in the vicinity.

Importantly, Privi has already received ISO 14001 certification demonstrating its commitment to environment safety and quality standards. The aerobic and anaerobic

treatment plants are fully operational while the company is embarking on setting up a reverse osmosis plant for recycling of water.

Privi follows stringent safety norms at its manufacturing units. Its Unit-I at Mahad has been recognized and awarded by the National Safety Council for being an accident-free plant for

maximum operating hours in 2006 and 2008.

9

OBJECTIVE OF THE STUDY

The idea behind is to give knowledge about the organization its related

activities & thus putting generalized suggestions so as to help efficient running

of the organization.

The project was conducted to know the various Department & how

working all those department.

Following are important objectives of the project which at a glance gives

the detail of the study.

• To have comprehensive understanding of Privi Organics Limited.

• To study the financial & competitive position of Privi Organics

Limited.

• To study & collect information about admin dept, engineering dept,

raw material dept, logistic dept, Excise dept, project dept , and all

• To familiarize with business organization

• Getting practical experience regarding the organizational function.

• To learn about the policies and functions of the organization.

• To understand the culture in the organization and its effect on employees

• To get industrial exposure and experience. As well as production and marketing

10

Research methodology

This report provides a consolidated preview of the functional activities of privi

organics limited, U n i t I I . T h e r e f e r r e d u n i t i s a c o r e l i m b o f privi

organics limited, t h e nation’s an export oriented unit manufacturers & exporters of

aroma chemical. The core departments, their primary functions and the integrating

activities are described in the report. Other special regulatory functions like

evaluation methods, employee benefit schemes have also been covered. The unique features

and policies of the company, which make it a leader without contention and have aided the

company in carving an excellent niche for itself in the national and the international arena,

have also been referred.

The study is mainly based on the details collected from each department.

It  p r o v i d e s   a   b e t t e r   u n d e r s t a n d i n g   a t   f u n c t i o n a l   l e v e l   o f   e a c h   d e p a r t m e

t .   I t  provides.a better understanding.at functional level,of each,department .

i.e.Purchase, Materials, Production, Marketing, Finance and Human Resource

Management. Each and every activity of the company has been studied very

carefully with the data available.

Apart from that I gained knowledge of the functioning  of different

 departments and their inter relationship with each other.

This study helped me familiarize with the manufacturing and assembling of commercial

business.

11

Mission, Vision and Values

Vision

To emerge as a leading Global manufacturer of Aroma Chemicals

Privi Organics intends to become the leading aroma chemicals brand across the globe with its wide range of innovative products, reliable quality along with exemplary services, to fulfil the ever growing demands of our rising customers.

Apart from our conventional product range, we have an inherent capability and capacity to custom-design, develop and manufacture aroma chemical molecules, as per the needs of our customers. With this customer-need-based capability, Privi Organics will be able to further strengthen bonds with customers for a long time to come...

Mission

To be the best by giving only the best!

At any given moment, we are self-assured and prepared to provide quality products by adopting safe and healthy practices in procuring, preparing and presenting our products.

We shall continue to be a leader in the local aroma chemicals industry and keep on thriving and innovating for the international market, thereby portraying India’s potential as a market leader in Aroma Chemicals.

12

Our mission shall always be to fulfill customer's needs first!

COMPANY PROFILE

13

PRIVI ORGANICS LIMITED was promoted by Mr. D. B. Rao and Mr.Mahesh.P.Babani as

a Private Limited Co. The manufacturing facility was commissioned in 1991 and commercial

production commenced in 1992. Initially Privi was manufacturing 4 Natural Aroma

Chemicals and as maret scenario changed Privi switched over to synthetic Aroma Chemicals.

Ever since the beginning, Privi has been gradually increasing its manufacturing capacity and

the range of products. Privi has entered in the Global market in 1998 and today

manufacturing site has grown to Global Standards. The company has been now converted to

deemed public Ltd.

POL bouquet of products consists of around 50 aroma chemicals based upon Pinene, Citral

Phenol, and specialty chemicals chemistry. The plant is having capacity of 8500 tons per

annum. The company which was once engaged in manufacturing of commodity products has

graduated to manufacturing specialty and value added products like Alpha Damascone,

Indian Sandal Core (equivalent to Sandal Mysore Core )

Sandal.Fleur(eq.to.bacdanol.Bacdanol(IFF)/Sandranol(Dragoco)),

Sandal Touch ( Sandalore, (Givaudan) Amber Fleur ( eq.to Iso-E-Super- IFF ) Timber Touch

(eq. to Timberol( Dragoco) ) etc.

Privi conferred with various awards / certificates like;

14

“Lalit Doshi Memorial Award” ( Year 2000) for its outstanding performance in year

2000- (This prestigious award was instituted by Lalit Doshi Memorial Foundation

and SICOM Limited is annually presented to a SICOM assisted unit having

outstanding performance.)

“Export House Certification Status ( Year 2002)

Unit-II became an Export oriented Unit

ISO 9001 certification

ISO 14001 certification

Certificate of Merit – Meritorious Performance in Industrial Safety in CHEMICALS

AND FERTILIZERS industry group- consistently for last 3 yrs.- National Safety

Council ( For year 2006, 2007 & 2008)

Privi supplies its aroma ingredients to Top ten fragrance houses in the world and known for

its consistent quality and competitive pricing. Over the past 12 years, Privi has maintained an

impressive average annual growth of more than 30%. This has been possible due to relentless

drive to deliver exceptional value Privi has provided to its customer in terms of product,

pricing and service.

Privi Organics is one of India's leading manufacturer, supplier and exporter of aroma

chemicals.

Privi started manufacturing aroma chemicals in the year 1992 with only two products, which

it gradually expanded to a range of over 50 products today, having a capacity of over 7000

tons per annum. Privi also develops and produces custom-made aroma chemicals as per

15

specific requirement of the customer. The research specialists at in-house R & D centre

continuously thrive to develop new products and processes.

The quality analysis laboratory is equipped with instruments like GLC, GCMS,

Spectrophotomers etc. Quality is strictly maintained at all stages - right from raw material to

the finished products. Privi launched its products in the international market in the year 1996

and today is a trusted supplier to many multinational fragrance houses across the globe.

Exports contribute to more than 70% of our sales turnover.

Over the past 12 years, Privi has maintained an impressive average annual growth of more

than 30%. This has been possible due to relentless drive to deliver exceptional value to our

customer in term

QUALITY POLICY

PRIVI ORGANICS LIMITED is committed to retaining its leadership position in domestic

market and shall endeavor to make its presence felt in Global market in the field of

manufacture & sale of Aroma Chemicals.

16

We will work with diligence, accuracy and care in everything we do to meet / surpass our

customers’ expectations on a continual basis, by supplying Quality products consistently on

time every time.

Environmental Policy

Privi Organics Limited is committed to the protection of environment by improving overall

performance in its operations and controlling and managing its manufacturing processes in its

premises in a socially responsible manner.

Privi Organics Limited put its earnest and conscientious efforts to minimize pollution by

reducing emissions to air, recycle water and reduce effluent by applying economically viable

applications of technology.

To achieve such environmental improvement, Privi Organics Limited will maintain, review

and revise Environmental Objectives and targets to continually improve its environmental

performance.

INFRASTRUCTURE

Privi Organics is equipped with two state-of-the-art manufacturing plants (Unit-I Unit-II)

that are located in the MIDC area of Mahad, Raigad district in Maharashtra. Both these units

17

are in close proximity to one another and are situated at about 175 Kms to the south of

Mumbai, which is within a drive of three hours approximately.

Built indigenously with in-house designs and technical capabilities by Privi's management

team, both the units conform to International standards with all the equipments adhering to

relevant codes like ASME API. These units together have a total production capacity of

9,000 TPA, which is the highest among any aroma chemical producer in India.

Significantly, while both the plants have dedicated facilities enabling all the key products for

continuous processing, this ultimately results in cost-efficiency for the entire production

system. Whereas, around 20% of the capacity is designed as multi-product processing facility

enabling flexibility in manufacturing newer and niche products with smaller volume. When

need be, the Company outsources certain non-critical reactions in other processing plants.

An important aspect for Privi's manufacturing Unit-II, which has the largest manufacturing

facility; it enjoys the status of EOU.

FACTORY - OPERATIONS

18

Amber Fleur Plant Didydromycenol Plant Effluent treatment plant Lonones

Nitriles

MANUFACTURING FACILITIES

Two production units at Mahad in Maharashtra, situated 200 km south of Mumbai and close to JNPT port.

Production capacity - Over 7,000 MT of finished product.

Spread over 47,500 sq. meters.

Capable of handling complex unit operations such as pyrolysis, hydrogenation, cyclisation, condensation, esterification, hydration etc.

Multipurpose plants capable of handling both batch and continuous distillation processes for Aroma Chemicals, ensuring consistent purity and efficient use of inputs.

Both units have received ISO 9001-2000 accreditation from BVQI

Significant cost and logistics advantage due to location.

A state-of-the-art R & D Centre involved in synthesis of cost efficient processes for bulk and specialty aroma chemicals.

LABORATORIES

R & D Lab

 

R & D Lab

Competition

our company continues to face stiff competition on account of increased new installed

capacities by the competitors for two of the flagship product DHMOL and Amber fleur .the

volatility in the forex market led to the rupee depreciating by17% thus leading to higher input

costs and thereby impacting competitive ness of our products against global comprtition

our company has been able to maintain ad grow its share of business in the European

continent despite recessionary trend.

19

Competitor of privi organics ltd

Sudarshan pvt ltd

Piddilite pvt ltd

Board of Directors

Mr Satan Santumal Bharwani – Chairman

20

Mr Satan Bharwani has more than 4 decades of experience in Banking & Finance and has been the Chairman of Privi since 2005.Mr Bharwani has been the guiding force with vast experience in banking and financial services which comes from his association with the RBI and NABARD where he retired as General Manager in 1994

During his tenure with RBI and NABARD he has worked on several national level Committees / Tas Forces set up on varied aspects of finance. He was a faculty member of the RBI college of Rural Banking, Pune and has delivered lectures on management and banking institutes including the IIM Ahmedabad and has co-authored books on management of co-operatives.

He has a post graduation degree in Economics, and a Diploma Holder in Industrial Finance and Co-Operatives, Cranfield University (U.K). He has studied varied aspects of Micro finance, non forum activities in Thailand, South Korea, U.K and Switzerland.

He is Director in Satco Securities and Financial Services Ltd, Satguru Enterprises Pvt. Ltd, Blossoms Industries Ltd

Mr Mahesh Babani – Managing Director

Mr Mahesh Babani took reins of the Company in 1989 and is the Managing Director since 2001. It has been his passion that has driven the Company from a startup to its current scale. He is the Managing Director of the Company and is involved in formulation of long term strategy, business development and financial management of the Company. Over the past 2 decades he has travelled extensively across the globe and has deep knowledge of the entire value chain of Aroma Chemical Business. His knowledge extends from sourcing of raw materials to its processing and to the final consumer of Aroma Chemicals.

His vision, perseverance, motivation and extensive knowledge of global aroma chemical markets has helped PRIVI to reach the current position.

At present he has strong relationships across the management level of PRIVI's customers, suppliers and other stake holders.

Mr Mahesh Babani is a Commerce Graduate and a self made entrepreneur and has operational managerial experience of over 30 years.

He is serving as Director on boards of Babani Investment & Trading Pvt. Ltd, Satguru Enterprises Pvt. Ltd, Privi Biotechnology Pvt. Ltd, Moneymart Securities Pvt. Ltd, Minar Ogranics Pvt. Ltd, Satellite Technologies Pvt. Ltd

21

Mr D B Rao – Executive Director

Mr. D B Rao is one of the founder of Privi and has been associated with the company since 1982. Mr Rao has been on the Board of Directors since 1982 and is a Whole-time Director designated as Executive Director since 2004. Mr D B Rao overseas operation, personnel and raw material sourcing.

Mr Rao has worked diligently in converting the vision of the company to realty and has handled projects right from conception to completion. He has been instrumental in putting up the manufacturing facilities in a swift and cost effective manner and chartering the growth of the Company. His vast experience, in depth knowledge in chemicals and engineering has helped PRIVI to attain the current position.

He is involved in the operations of the company and institutionalizing various process in the management of the company. He has travelled extensively across the globe and has been involved in sourcing of raw materials.

He has contributed significantly in PRIVI's growth and in creation of formidable organization structure of PRIVI.

Mr D B Rao is a post graduate in Engineering with over 33 years experience. He is Director on boards of Minar Organics Pvt. Ltd, Vivira Chemicals Pvt. Ltd., and Satellite Technologies Pvt. Limited.

Mr Arjan J Advani - Director

Mr Arjan J Advani has been associated with PRIVI from 2005 and has been a visionary with vast experience steming out of his association from being Chairman, Nominee Director and Member of Governing Councils of many leading companies/Institutions.

Mr. Advani is a Chemical Engineer and holds degrees in Business Management and Development Bank Management (West Germany). He has been associated with a large number of companies for Project Appraisal, Implementation, Technology Finance, Venture Capital and Turnaround Strategies. He has developed and implemented programs for technology co-operation, High tech Hi Value Horticulture, environment, energy etc. His has done advisory Assignments which include: World Bank, Asian Development Bank-Royal Government of Bhutan, International Development Research Institute (Canada), Singapore- India Software Consortium

He is also a Member – Governing Council – National Institute of Naturopathy and has been conducting programs for Health, Harmony and Happiness for the Body Mind and Soul.

Mr Anoop P Babani - Director

22

Mr Anoop Babani has been associated with PRIVI since 1999 and has been actively involved in giving key inputs in various areas of company's operations.

Mr Anoop Babani has been associated with Satco Capital Markets Limited (Formerly Satco Securities & Financial Services Limited) from its inception and is currently working as Managing Director of the Company. He has more than 20 years experience and good knowledge of stock Market operations. He is also associated with other group companies of Satguru Group involved in construction, pharmaceuticals and chemical industry.

Mr Anoop Babani is B Com graduate and is on board of Satco Securities & Financial Services Ltd, Privi Pharma Pvt. Ltd, Satguru Enterprises Pvt. Ltd, Satguru KNS Construction Pvt. Ltd, Buildwell Land Developers Pvt. Ltd, Babani Investments & Trading Pvt. Ltd, Multisatco Investments Pvt. Ltd, Vivira Chemicals Pvt. Ltd.

Mr Rajesh Budhrani - Director

Mr Rajesh Budhrani has been associated with PRIVI from 2005 as investor and Director. Mr Budhrani has guided the company to new heights with his experience as investor and Director in various companies.

Mr Budhrani with his vast knowledge of global financial markets has played a major role in formulating financial plan and financial strategies and has personal relationships with the financial world has often benefited the company.

Over the years Mr Budhrani has been associated with various companies where he has portfolio investments or direct equity investment.

He has invested across the globe particularly in emerging markets and formidable knowledge of global financial markets and global commodity markets

Mr Rajesh Budhrani holds a degree in Bachelor of Science – Major in Finance & Accounting from Boston School of Management. He graduated from his class, Summa Cum Laude.

Mr Budhrani is a Director on the board of Budhrani Finance Ltd, Reit Asset Management India Ltd and many other Companies.

DEPARTMENT FUNCTIONS

FUNCTIONS OF THE MAJOR DEPARTMENTS SELECTED

The major functional areas of the unit and the major departments which oversee

those areas are catalogued as follows:

Finance Department

23

Marketing Department

HR Department 

Production Department

Finance Department

Finance is considered as the life blood of business. This is because in the modern

money-oriented economy, finance is one of the basic foundation so fall kinds of

economic activities. 

Finance function may be defined as the procurement of funds and their effective

utilization.

. Book keeping proceduresKeeping records of the purchases and sales made by a business as well as capital spending.

Preparing Final AccountsProfit and loss account and Balance Sheets

Providing management informationManagers require ongoing financial information to enable them to make better decisions.

Management of wagesThe wages section of the finance department will be responsible for calculating the wages and salaries of employees and organising the collection of income tax and national insurance for the Inland Revenue

RESPONSIBILITIES OF FINANCEN DEPARTMENT:

• The pricing department is responsible for the fixing of prices for sales of the vehicles and

for buying of raw materials and semi finished goods.

• Treasury section is responsible for all kinds of funding managements such as investments.

• Taxation section is responsible for remittance of tax, filing of returns, handling of litigations

etc..,

• Costing and Budgeting department is responsible for the unit costing of each product in

particular, such as spare parts and a vehicle as whole.

24

PROCESS & ACTIVITIES OF FINANCE:

a) Financial Accounts

• Quarterly, Half-yearly and annual results published as per listing requirements

• Limited Review / audit coordination.

• Annual Reports – Disclosures made are comprehensive; complied much before they

become mandatory

• Early completion of accounts, audit process; forefront in adherence to accounting standards

& other guidelines.

• Audit Committee – comprises of Stalwarts from the profession.

• Automation of processes.

MARKETING –DEPARTMENT

Marketing is concerned with the people and the activities involved in the flow of goods and

services from the producer to the consumer. Privi organics has been offering world class

products to millions of customers to 40countries across the world. Its main product line

includes Alpha Damascone , Alpha Ionone, Alpha Ionone ,Alpha Ionone 950 ,Amber Fleur,

Amber Gamma ,Beta Ionone ,Citronellal Citronellyl ,Acetate Citronellyl ,Nitrile Delta,

Damascone ,Dihydromyrcenol

25

• The market leader in Indian bus market offering CNG, Double decker and Vestibule bus

variants.

• The market leader and pioneer for multi-axle trucks and tractor-trailers.

• Enjoys market supremacy in diesel engines for Industrial, Gen-set and Marine applications.

• Largest supplier of logistic vehicles to the Indian Army.

• Offers “Total Maintenance Solutions” through maintenance contracts for its products,

relieving the customers of all maintenance worries.

These are the main section of the market departments:

Sales department is responsible for the sales and distribution of the products to the different regions.

Research & Department is responsible for market research and testing new products to make sure that they are suitable to be sold.

Promotion department decides on the type of promotion method for the products, arranges advertisements and the advertising media used.

Distribution department transports the products to the market.

1) Focus on the Customer.

Marketers should spend time listening to their customers (and prospective customers) in order to understand their needs and wants regarding a particular product or service. Soliciting thoughts and input from internal stakeholders such as Sales and Customer Service is also appropriate, as these departments are typically closest to the customer.

2) Monitor the Competition.

Learning about, and understanding the competitive landscape is also an important function of the Marketing Department. Marketers should be the “go to people” within an organization to

26

answer the following types of questions: Who is the competition (both direct and indirect)? What do they communicate? Which customers do they serve? Why do customers choose the competitor versus you?

3) Own the Brand.

The perceptions and feelings formed about an organization, its products / services, and its performance is what is known as its “brand.” The Marketing Department is responsible for creating meaningful messages through words, ideas, images, and names that deliver upon the promises / benefits an organization wishes to make with its customers. Furthermore, the Marketing Department is responsible for ensuring that messages and images are delivered consistently, by every member of the organization.

4) Find & Direct Outside Vendors.

Internal Marketing Departments do not create magic alone. Therefore, Marketing needs to source and oversee a group of outside resources (a.k.a. “partners”) such as copywriters, graphic designers, web designers, database specialists, and printers so that a company can get the most “bang” from its marketing efforts.

5) Create New Ideas.

Whether it’s customer acquisition campaigns, keep-in-touch programs, new product promotions, retention efforts, or something in between, the Marketing Department should ultimately be responsible for developing new ideas that generate revenue for the company. This does not mean that the Marketers have to come up with every idea on their own; however, they need to identify, cultivate, and work with others (see point #4) to execute programs that will create revenue.

Innovation

27

Privi's products are selected based on market intelligence and are further developed in the R&D facilities with plans designed by its core technical team.

The R&D technical team is also engaged in optimizing the manufacturing processes, which not only improve yields, but also reduce cycle time, cost, effluent, safety and environmental risks.

Privi's R&D lab is a state-of-the-art facility approved by the Department of Scientific and Industrial Research, Ministry of Science and Technology.

The research centre is located at Mahad plant to facilitate seamless integration between lab, pilot plant and various production facilities.

Privi lays great emphasis on quality production considering international quality standards at every level.

Acetals and ketals formation

Bayer Villigers oxidation

Condensation reaction

Cracking

Cyclisation

Darzens Glycidic ester synthesis

Decarboxylation

Dehydrohalogenations

Diels alder reaction

Epoxidations

Esterifications

Friedel Craft reaction

Grignard Reaction

Hydrogenation

Hydrolysis

Mannich reaction

Michael reaction

Oxidations

Prins reaction

Rearrangments

Reductions

Story synthesis

Vilsmayer Haak reaction

Wolf-Kishner reduction

28

Human resource Department

The role of Human resource department is in charge of recruiting, training, and the dismissal of employees in an organisation.

Recruitment and selection Training programmes

Training programs are held by the HRD to improve the employees skills, as well as to motivate them. There are three main types of training :

1. Induction training2. On-the- job training

3. Off-the-job training

Manpower Planning

The HR department needs to think ahead and establish the number and skills of the workforce required by the business in the future. Failure to do this could lead to too few or too many staff or staff with inappropriate needs.

Dismissal and Redundancy (retrenchment)

Dismissal is where a worker is told to leave their job due to unsatisfactory work or behaviour.Redundancy is when the business needs to reduce the number of employees either because it is closing down a branch or needs to reduce costs due to falling profits. It may also be due to technological improvements, and the workers are no longer needed.

Privi is known for its Culture of management, action and innovation.

Our belief in creating value through innovation has successfully transformed Privi into one of India's leading manufacturer & supplier of Aroma Chemicals. At Privi, we continuously strive to harness the power of intellectual minds and challenge conventional thinking by pushing the boundaries of science and art.

Employment at Privi is synonymous with change and growth. We offer exciting and challenging careers within a stimulating knowledge-driven work environment where ideas and skills are valued; where people can realise their full potential through dedicated training programs; and where individual contribution is respected and recognised.

Manpower PlanningIt involves the planning for the future and finding out how many employees will be needed in the future by the business and what types of skills should they possess.

29

It depends on the following factors The number of people leaving the job The projected growth in sales of the business Technological changes Productivity level of the workers

 

Job analysis and Job descriptionHR Department is also involved in designing the Job analysis and Job description for the prospective vacancies.A job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.Job descriptions are written statements that describe the:

duties, responsibilities, most important contributions and outcomes needed from a position, required qualifications of candidates, and reporting relationship and co-workers of a particular job.

 Determining wages and salariesHR Department is also involved in conducting market surveys and determining the wages and salaries for different position in an organization. These decision may be taken in consultation with top management and the Finance department. Recruitment and SelectionOne of the most important jobs HR department is to recruit the best people for the organization. This is of crucial importance as the success of any organization depend on the quality of its workforce. Details regarding the recruitment and selection procedure can be found here. Performance ApprasialOnce the employees are recruited , the HR Department has to review their performance on a regular basis through proper performance appraisals.Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.Training and DevelopmentHR department is constantly keeping a watch over the employees of the organisation. In order to improve the efficiency level of the employees they have go undergo regular trainings and development programmes. All trainings and development needs are carried out by this department. Training might include on the job or off the job training. Find more information on training here.

30

 Employee welfare and motivationHappy employees mean a healthy organization. HR Department conducts various employee welfare activities which might include employees get together, annual staff parties etc. HR department also reviews organizational policies and its impact on the motivation of the employees.  Addressing employees grievancesHR department is the link between the workers and the management. Employees grievances related work environment are usually entertained and resolved by the HR Department. Labour management relationsFor the smooth operation of any organization, it is crucial to have good labour management relations. HR department has to ensure that these relations are cordial. In case of any labour-management conflict the HR Department will play a vital role in bringing both management parties to the negotiation table and resolving the issue. Implementing organizational policiesHR Department has to coordinate with line manager and see that the organizational policies are being implemented in a proper manner. Disciplinary action can be initiated against employees who are not following organizational rules and regulations. All these actions are conceived and implemented by the HR department.Dismissal and redundancy

HR Department has to take firm actions against employees who are not following the organizational code of conduct, rules and regulations. This can result in the dismissal of the employee.

31

Production Department

The production department is responsible for converting inputs into outputs through the stages of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable.

There are five production sub-functions

Production and planning.

They will set the standards and targets at each stage of the production process. The quantity and quality of products coming off a production line will be closely monitored.

Purchasing department

This department will provide the materials, components and equipment required. An essential part of this responsibility is to ensure that stocks arrive on time and are of good quality

The stores department

The stores department are responsible for stocking all the necessary tools, , raw materials and equipment required to service the manufacturing process.

The design and technical support department

They are responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product.

The works department

This department is concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection.

32

Research methodology

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study

the various steps that are generally adopted by a researcher in studying his research

problem along with the logic behind them. It is necessary for the researcher to know

not only the research methods/techniques but also the methodology.

In preparing of project the information is collected from two sources.

Primary Sources:

Primary sources include information collected from financial statements of

WorleyParsons Sea India Private Limited for last 3 years.

Secondary Sources:

Secondary Sources include:

Information from the text sources

Information from the internet sources

Information from the materials provided by the concern

SAMPLING DESIGN

Sampling unit : Financial Statements

Sampling Size : Last three years financial statements

COLLECTION OF DATA

Primary data is mainly used for this study and the three year data from 2010-11 to

2012-13 pertaining to the study was collected from the company and secondary data

from books, magazines, journals, web sites etc.

PERIOD OF STUDY

The duration of the study was for a period of 2010-11 to 2012-2013

TOOLS USED

Primary data were analyzed and interpreted with the help of different tools such as

ratio analysis, graphs, tables, operating cycle, comparative balance sheets, schedule

of changing in working capital etc

33

Company Product/Services

Products

Alpha Damascone Alpha Ionone Alpha Ionone Alpha Ionone 950

Amber Fleur Amber Gamma Beta Ionone Citronellal

Citronellyl Acetate Citronellyl Nitrile Delta Damascone Dihydromyrcenol

Florascone Gamma Methyl Ionone

Gammanolene 700

Geranyl Acetate

Indian Sandal Core Ionone 100% Methyl Ionone Mugenol

Nimberol OTBCHA PTBCHA Sandal Fleur

Sandal Fleur Laevo Sandal Touch Tetrahydroflorol Tetrahydrogeraniol

Tetrahydrogeranyl Acetate

Tetrahydromyrcenol Timber Forte Timber Touch

Violetone Coeur    

Future Products

Delta & Gamma Lactones Carvone – D & L

Menthone from Byproduct –Dipentene & Carene

Castor oil derivatives-Aldehyde C11

Grignard chemistry based products

34

35

Corporate Social Responsibility

Adopting School Children from Under privileged Family for Education. Blood Donation Camp...

Eye Checkup Camp...

Note Books Distribution...

Educational Toy Library for Kids...

Vastra Samman Varandh.

Previous Year

Health & Safety Camps... Old Age Home Visits...

Distributing Learning Aids...

Adopting School Children...

Raigad Fort Cleaning Drive...

36

SWOT   ANALYSIS

STRENGH OF THE COMPANY

Economies of Scale

Privi has a leadership position in the world market for products like- DHMOL, Amber fleur, Citonellyl Nitrile etc. providing it economies of scale and opportunity to set up dedicated manufacturing facilities for these products to produce them in a most economical manner.

Operations Excellence

One of Privi's strength is its successful production facilities, which is the result of its state-of-the-art manufacturing facilities and a very competent operations team to deliver quality and consistency. These are followed-up with well designed systems and processes to ensure stringent quality control at all levels.

37

R&D Capabilities

Privi's strong R&D team is backed by a well-equipped infrastructure that is engaged in new product developments and process improvements, so as to keep pace with the changing needs.

Market Access

Privi firmly believes that all the goodness it produces, must reach the end user and hence has established strong relationships with leading flavors, fragrances and FMCG companies. Privi is well-known for its long standing relationships with all its customers and have excellent track record towards customer satisfaction, which is its primary goal. At every stage Privi ensures to uphold all market values and principles in the interest of its suppliers and consumers.

Supply Chain

Continuity of quality products and services is Privi's hallmark. We have developed strong and long lasting relations with all vendors so as to keep our supply chain unceasing. One of the aspects pointing towards this is our well-planned backward integration into key raw materials for Pinene based products.

Market Focus

At the end of the day what matters is to understand the tomorrow. Considering this, Privi regularly interacts with customers with an 'ear-to-the-ground approach'. This is made possible through various market researches with established networks, enabling us for new product development so as to maintain our leadership position in the market.

38

WEAKNESS OF THE COMPANY

Cost of powar

Infrastructure

Scale of production

Cost disadvantages

Multiple taxes

Low investment in R&D and Technology

OPPORTUNITIES FOR THE COMPANY

1.Privi organizes many creative competitions for students and young scholars, such as the 'International Creative Contest' where approx. 800,000 students from 3000 schools participate.It also helps in promoting the brand very well.

2. The chemical industry in the world in growing very strongly and focus on emerging economies in other parts of the world such as Brazil, South Africa, China, Singapore, Thailand and East Africa is a great opportunity to establish stronghold in the international market.

3. National market through good advertisement.

4. Company provides better credit facility to dealers.

5. Company introduces promotional programmes

THREATS FACED BY THE COMPANY

1. High completion

2. Liberal credit policy of other brand3.Promotional programmes of other brand

3. Complicated national market

4. Good replacement facility if other brand

39

Views

Half Yearly Progress Report of Compliance with EC Condition- Manufacture of Alpha Pineene, Beta Pinene, Limonene & By-products- Back ward Integration.

Adopting School Children from Underprivileged Family for Education. Mr. Sanjeev Patil, VP Strategy, was invited as a Chief Guest by Tatyasahed Kore

Institute of Engineering & Technology Warananagar, Kolhapur for their Project and Industry Solver Competition, "Jidnyasa - 2K13".

Environment Clearance Grant for Manufacture of Alpha Pinene, Beta Pinene, Limonene and byproducts by – Secretary, Environment Department, Mantralaya, Mumbai-32

Half yearly – EC compliance Report submitted to CCF, Regional Office, MoEF, Western Region, Bhopal.

PRIVI ORGANICS LIMITED is now Kosher certified manufacturer of flavors ingredients / chemicals utilizing one of the Internationally recognized Kosher organization i,e STAR- K Certification . All flavor ingredients / products are available Kosher Pareve or Dairy for year-round use, excluding Passover.

PRIVI participates in Xth international Exhibition of Raw Material for Perfumery.

PRIVI is the first organization in the chemical sector to receive OHSAS certificate with NABCB logo

40

CONCLUSION

Privi Organics is one of India's leading manufacturer, supplier and exporter of aroma chemicals.

Privi started manufacturing aroma chemicals in the year 1992 with only two products, which it gradually expanded to a range of over 50 products today, having a capacity of over 15500 tons per annum. Privi also develops and produces custom-made aroma chemicals as per specific requirement of the customer. The research specialists at in-house R&D centre continuously thrive to develop new products and processes.

Privi has two state-of-the-art integrated manufacturing facilities with capability to perform various critical reactions like; hydrogenation, condensation, gregnard reactions, pyrolysis, reactive distillation, high vacuum distillation, continuous distillation etc. and deliver consistency in odor and other key parameters in an industry driven by stringent olfaction standards.

With an installed capacity of ~15,500 TPA of aroma chemicals, the Company enjoys a dominant position and economies of scale in its product categories.

Privi's world-class products is the result of its very strong R&D team that has proven expertise in developing new products, customizing odor as per customer requirements, scaling up products from basic research to commercial scale, and designing process improvements to drive quality and cost optimization.

The research efforts are facilitated with an advanced research infrastructure comprising of two well-equipped R&D labs, each of which are recognized by the Department of Scientific and Industrial Research, Ministry of Science and Technology, and a hi-tech pilot plant. Supported by a strong R&D team, Privi has been able to develop some high-margin key aroma chemicals that have good growth prospects in the fragrance industry and have established their market viability through extensive market studies.

Importantly, one of the R&D labs is completely focused on developing Green Products and Green Technologies in technical collaboration with UICT (University Institute of Chemical Technology, Mumbai) through biotechnology. This only goes on to highlight Privi's concern and involvement in preserving environment without compromising on quality of its products.

The Quality Management System (QMS) of Privi Organics have earned the ISO 9001:2008 certification followed with ISO 14001:2004 certification for its Environmental Management System (EMS).

Privi Organics has recently been also conferred with BS OHSAS 18001:2007 standard Certification Accredited by NABCB (Occupational Health & Safety Assessment Series)

41

Bibiography

http://www.privi.com/default.asp http://www.privi.com/overview.asp http://www.privi.com/overview-board-directors.asp

http://www.privi.com/overview-news-views.asp http://www.privi.com/products.asp

http://www.privi.com/infrastructure.asp http://www.google.co.in/#q=privi%20organics%20ltd http://mumbai.dialindia.com/privi-organics-ltd-18394.html