Rico Winery & Anand Rathi - My project 2013-16

RANI CHANNAMMA UNIVERSITY, BELAGAVI
BIJAPUR LIBERAL DISTRICT EDUCATION ASSOCIATION’S
A. S. PATIL COLLEGE OF COMMERCE, BBA PROGRAMME
(AUTONOMOUS) VIJAYAPUR
(Approved by ACITE, New Delhi & Affiliated to Rani Channamma University, Belagavi)
A Report Submitted in Partial Fulfillment of the requirement for the Award of
DEGREE IN BACHELOR OF BUSINESS ADMINISTRATION
2013 - 2016
PROJECT REPORT ON
I. Specialization Study on Analysis Select Commodity Price Fluctuation in Commodity Market at
ANAND RATHI SHARE & STOCK BROKERS LTD, VIJAYAPUR
II. Organization Study on In-plant Training on Basic Information at
RICO WINERY, VINEYARDS AND WINE PARK, VIJAYAPUR
SUBMITTED BY
Mr. MALLIKARJUN. M. HOSAMANI
BBA V Semester
Reg. No - BBA13011

CERTIFICATE
This is to certify that the project report is a genuine prepared by
MALLIKARJUN M HOSAMANI of VI semester of Bachelor of Business
Administration (B.B.A) course has successfully completed his specialization study
and submitted to A.S. PATIL COLLEGE OF COMMERCE (AUTONOMOUS)
as a partial fulfillment of the award of Bachelor of Business Administration
(B.B.A).
Place: Vijayapur
Prof. Pradeep K. Gupta Prof. Sanjay Hanagandi Dr. S. S. Kulkarni
(Internal Guide) (B.B.A Co-ordinator) (Director)

DECLARATION
I hereby declare that this project report entitled “Specialization Study of “ANAND RATHI
SHARE & STOCK BROKERS LTD.” at VIJAYAPUR has been undergone project report on “Analyze
Select Commodity Price Fluctuation in Commodity Market”.
This project prepared by me during the period from 4th
December 2015 to 5th
January
2016 under the guidance of Prof. PRADEEP K GUPTA, Management faculty of A.S. PATIL
COLLEGE OF COMMERCE AT VIJAYAPUR.
I would like to say that this report is my own and the conclusions drown are based on
information and data collected by me. I also declare that this project has not been submitted at
any time to any other university or institute for the award of any degree.
Place: VIJAYAPUR
Date: 6 – 1 – 2016
MALLIKARJUN M HOSAMANI

ACKNOWLEDGEMENT
I would like to thank My Institute Director Dr. S. S. KULKARNI, Co-Ordinator Prof.
SANJAY HANAGANDI, of A.S. PATIL COLLEGE OF COMMERCE AT VIJAYAPUR; Who has been
supporting and guiding the entire college and also making sure everything goes well.
I would like to thank My Institute Guide Prof. PRADEEP K GUPTA, for regularly staying in
touch with me throughout the training period and guiding me so that I know what I have to do
and how to do it.
My special thanks to Mr. SANTOSHKUMAR SHIRWAL, Branch Manager of “ANAND
RATHI SHARE & STOCK BROKERS LTD.” at VIJAYAPUR District for permitting me to undergo the
project work at their organization.
Lastly, I would like to express my regards to all staff of ANAND RATHI SHARE & STOCK
BROKERS LTD. for their kind co-operation.

Table of Contents
EXECUTIVE SUMMARY.................................................................................................................................1
INTRODUTION TO CONCEPT ........................................................................................................................2
PRESENT COMMODITY MARKET IN INDIA...................................................................................................3
STRUCTURE OF INDIAN COMMODITY MARKET...........................................................................................4
ANAND RATHI FINANCIAL SERVICE LIMITED................................................................................................9
VISION STATEMENT .................................................................................................................................9
MISSION STATEMENT ..............................................................................................................................9
MANAGEMENT OF ANAND RATHI .........................................................................................................10
GROUP HISTORY – MILESTONES............................................................................................................10
AREA OF OPERATION.............................................................................................................................11
SWOT ANALYSIS.....................................................................................................................................12
COMPETITORS IN BIJAPUR.....................................................................................................................12
CORPORATE STRUCTURE .......................................................................................................................13
SERVICES PROVIDED BY ANAND RATHI TO ITS CUSTOMERS.................................................................13
WORK FLOW - HOW TO TRADE IN COMMODITY FUTURES IN INDIA ........................................................16
PARTICIPANTS FOR COMMODITY MARKET ...............................................................................................18
RESEARCH METHODOLOGY .......................................................................................................................19
TOPIC OF STUDY.....................................................................................................................................19
OBJECTIVE OF STUDY.............................................................................................................................19
DATA COLLECTION .................................................................................................................................19
LIMITATION OF STUDY...........................................................................................................................19
SELECT COMMODITY CATEGORY...........................................................................................................20
AGRO PRODUCT: SPICES ...................................................................................................................20
INDIA IS A GLOBAL SPICE HUB ...........................................................................................................20
TRADING IN SPICES ON COMMODITY EXCHANGES IN INDIA ............................................................20
STUDY ON COMMODITIES .................................................................................................................21
SPICES FUTURES CONTRACTS SPECIFICATIONS .................................................................................21
VALUE CHAIN .....................................................................................................................................21
DATA ANALYSIS..................................................................................................................................22
SUMMARY OF FINDING..............................................................................................................................34
SUGGESTIONS ............................................................................................................................................35
CONCLUSION..............................................................................................................................................36
BIBLIOGRAPHY ...........................................................................................................................................37

ANAND RATHI SHARE & STOCK BROKERS LTD – VIJAYAPUR
A.S.PATIL COLLEGE OF COMMERCE (Autonomous), BBA PROGRAMME BIJAPUR.
Submitted By: Mallikarjun Hosamani BBA13011 1
EXECUTIVE SUMMARY
The project was undertaken in “ANAND RATHI SHARE & STOCK BROKERS LTD., VIJAYAPUR”
Anand Rathi is leading stock brokerage service company in India.
Anand Rathi has been leading in 5th
rank in India a stock brokerage sector. The company
rides on rich experience in the capital market to offers its client’s wide portfolio of saving and
investment solution.
The project mainly emphasizes on “Analyze Select Commodity Price Fluctuations in
Commodity Market” this study was undertaken to know the Characteristic & Various Activities
perform by commodity market. The study contains the Select Commodities are Coriander, Cumin
Seeds, Turmeric and, Cardamom.
Commodity markets are the basic necessities of everybody but due to the modern
technology, globalization, and liberalization, commodity markets can go across the world with
regards to commodity trading, commodity markets are maturing day by day in today’s market.
Commodity market is an important constituent of the financial markets of any country.
Commodities are amongst the oldest market of the world. Commodities can be classified into gold,
silver, basmati rice, cotton, raw jute, groundnut, mustard seed, castor oil, spices and so on. There
are so many commodities emerging at a very quick pace.
These, Commodities are the risk management instruments which transfers the pricing risks
to other parties. Commodities are also very complex financial instruments. Hence the investor
should take at most care while trading. It seems to be electronic gambling with two parties. Clients
even can’t make profit of 25% of total investment invested by them. As we say that client make a
good profit in particular commodity, again make impulse of buying more quantity and it might be a
wrong decision, later on they bear a huge loss on investments.
Investing in commodities is very good option, but there are many risks involved in it as
involved in any investment. In order to avoid such risk the investor should carefully examine the
market before investing anything. The investor should keep regular check of the market as the
market fluctuates anytime so he/she should be careful about it as, if he/she losses concentration
he/she can incur a big lose. So investing in commodities is risky but useful.

INTRODUTION TO CONCEPT
Commodity
Any product that can be used for commerce or an article of commerce which is traded on an
authorized commodity exchange is known as commodity. The article should be movable of value,
something which is bought or sold and which is produced or used ass the subject or barter ort sale.
In short commodity includes all kinds of goods. Indian Forward Contracts (Regulation) Act (FCRA),
1952 defines “Goods” as “every kind of movable property other than actionable claims, money and
securities”.
In current situation, all goods and products of Agricultural (including plantation), Mineral
and Fossil origin are allowed for commodity trading recognized under the FCRA. The national
commodity exchanges, recognized by the Central Government, permits commodities which include
precious (gold and silver) and non-ferrous metals, cereals and pulses, ginned and un-ginned cotton,
oilseeds, oils and oilcakes, raw jute and jute goods, sugar, potatoes and onions, coffee and tea,
rubber and spices. Etc.
Commodity Futures
A Commodity futures is an agreement between two parties to buy or sell a specified and
standardized quantity of a commodity at a certain time in future at a price agreed upon at the time
of entering into the contract on the commodity futures exchange.
The need for a futures market arises mainly due to the hedging function that it can perform.
Commodity markets, like any other financial instrument, involve risk associated with frequent price
volatility.
Commodity Derivative Market
A commodity derivative is a contract which derives its value from an underlying commodity.
The main purpose of future market is to provide a mechanism for successfully managing the price
risks associated with commodities. Future market provides a platform for buyer and seller to trade
in a huge number of diverse commodities such as agriculture products, metals and energy. These
markets are not only meant for hedgers, speculators and arbitrages, but also for retail investors
who want to trade in booming commodity market.
India is among the top-5 producers of most of the commodities, in addition to being a major
consumer of bullion and energy products. Agriculture contributes about 22% to the GDP of the
Indian economy. It employees around 57% of the labor force on a total of 163 million hectares of
land. Agriculture sector is an important factor in achieving a GDP growth of 8-10%. All this indicates
that India can be promoted as a major center for trading of commodity derivatives.

PRESENT COMMODITY MARKET IN INDIA
Today, commodity exchanges are purely speculative in nature. Before discovering the price,
they reach to the producers, end-users, and even the retail investors, at a grassroots level. It brings
a price transparency and risk management in the vital market. By Exchange rules and by law, no
one can bid under a higher bid, and no one can offer to sell higher than someone else’s lower offer.
That keeps the market as efficient as possible, and keeps the traders on their toes to make sure no
one gets the purchase or sale before they do. Since 2002, the commodities future market in India
has experienced an unexpected boom in terms of modern exchanges, number of commodities
allowed for derivatives trading as well as the value of futures trading in commodities.
In India there are 25 recognized future exchanges, of which there are four national level
multi-commodity exchanges. After a gap of almost three decades, Government of India has allowed
forward transactions in commodities through Online Commodity Exchanges, a modification of
traditional business known as Adhat and Vayda Vyapar to facilitate better risk coverage and
delivery of commodities.
THE FOUR EXCHANGES ARE:
(i) National Commodity & Derivatives Exchange Limited (NCDEX) Mumbai,
(ii) Multi Commodity Exchange of India Limited (MCX) Mumbai and
(iii) National Multi- Commodity Exchange of India Limited (NMCEIL) Ahmedabad.
(iv) Indian Commodity Exchange Limited (ICEX), Gurgaon
There are other regional commodity exchanges situated in different parts of India.

STRUCTURE OF INDIAN COMMODITY MARKET
Forward Markets Commission (FMC)
It is statutory institution set up in 1953 under Forward Contracts (Regulation) Act, 1952.
Commission consists of minimum two and maximum four members appointed by Central Govt. Out
of these members there is one nominated chairman. All the exchanges have been set up under
overall control of Forward Market Commission (FMC) of Government of India.
Commodity Exchange
A commodity exchange is an association or a company or any other body corporate
organizing futures trading in commodities for which license has been granted by regulating
authority.
National Exchanges Regional Exchanges
• Compulsory online trading • Online trading not compulsory
• Transparent trading • De-mutualisation not mandatory
• Exchanges to be de-mutualised
• Recognition given for fixed period after which
it could be given for re-regulation
• Exchange recognised on permanent basis
• Large expanding volumes
• Generally, these are single commodity
exchanges. Exchanges have to apply for trading
each commodity.
• Multi commodity exchange • Low volumes in niche markets

NCDEX (National Commodity & Derivatives Exchange Limited)
NCDEX is a public limited co. incorporated on April 2003 under the Companies Act 1956; it
obtained its certificate for commencement of Business on May 9, 2003. It commenced its
operational on Dec 15, 2003. Promoters shareholders are: Life Insurance Corporation of India (LIC),
National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of
India (NSE) other shareholder of NCDEX are: Canara Bank, CRISIL limited, Goldman Sachs,
Intercontinental Exchange (ICE), Indian farmers Fertilizer Corporation Ltd (IFFCO) and Punjab
National Bank (PNB).
NCDEX is regulated by Forward Markets Commission (FMC). NCDEX is also subjected to the
various laws of land like the Companies Act, Stamp Act, Contracts Act, Forward Contracts
Regulation Act and various other legislations.
NCDEX is located in Mumbai and offers facilities to its members in more than 550 centers
throughout India. NCDEX is currently facilitates trading in 57 commodities mainly in Agro product.
Commodities Traded at NCDEX
• Bullion:- Gold Kg, Silver, Brent
• Minerals:- Electrolytic Copper Cathode, Aluminum Ingot, Nickel Cathode, Zinc Metal
Ingot, Mild Steel Ingots
• Oil And Oil Seeds:- Cotton Seed, Oil Cake, Crude Palm Oil, Groundnut (In Shell),
Groundnut Expeller Oil, Cotton, Menthe Oil, Refined Soya Oil, Rape Seeds, Mustard Seeds,
Caster Seed, Yellow Soybean, Meal
• Pulses:- Urad, Yellow Peas, Chana, Tur, Masoor.
• Grain:- Wheat, Indian Pusa Basmati Rice, Indian Parboiled Rice, Indian Raw Rice, Barley,
Yellow Red Maize
• Spices:- Jeera, Turmeric, Pepper, Dhaniya, Chilli
• Plantation:- Cashew, Coffee Arabica, Coffee Robusta
• Fibers And Other:- Guar Gum, Guar Seeds, Guar, Jute Sacking Bags, Indian 28 Mm
Cotton, Indian 31mm Cotton, Lemon, Grain Bold, Medium Staple, Mulberry, Green Cottons,
Potato, Raw Jute, Mulberry Raw Silk, Kapas, Sugar.
• Energy:- Crude Oil, Furnace Oil.

Multi Commodity Exchange of India Limited (MCX)
Multi Commodity Exchange of India Limited (MCX) is an independent and de-mutualized
exchange with permanent reorganization from Government of India, having Head Quarter in
Mumbai. Key shareholders of MCX are Financial Technologies (India) Limited, State Bank of India,
Union Bank of India, Corporation Bank of India, Bank of India and Canara Bank. MCX facilitates
online trading, clearing and settlement operations for commodity futures market across the
country.
MCX started of trade in Nov 2003 and has built strategic alliance with Bombay Bullion
Association, Bombay Metal Exchange, Solvent Extractors Association of India, pulses Importers
Association and Shetkari Sanghatana.
Commodities Traded at MCX
• Bullion:- Gold, Silver, Silver Coins,
• Minerals:- Aluminum, Copper, Nickel, Iron/Steel, Tin, Zinc, Lead
• Oil And Oil Seeds:- Castor Oil/Castor Seeds, Crude Palm Oil/ Rbd Pamolein, Groundnut Oil,
Mustard/ Rapeseed Oil, Soy Seeds/Soy Meal/Refined Soy Oil, Coconut Oil Cake, Copra,
Sunflower Oil, Sunflower Oil Cake, Tamarind Seed Oil,
• Pulses:- Chana, Masur, Tur, Urad, Yellow Peas
• Grains:- Rice/ Basmati Rice, Wheat, Maize, Bajara, Barley,
• Spices:- Cardamom
• Plantation:- Cashew Kernel, Rubber, Areca Nut, Betel Nuts, Coconut, Coffee,
• Fiber And Others:- Kapas, Kapas Khalli, Cotton (Long Staple, Medium Staple, Short Staple),
Cotton Cloth, Cotton Yarn, Gaur Seed And Guargum, Gur And Sugar, Khandsari, Mentha Oil.
• Petrochemicals:- High Density Polyethylene (Hdpe), Polypropylene (Pp), Poly Vinyl
Chloride (Pvc)
• Energy:- Brent Crude Oil, Crude Oil, Natural Gas.

NMCEIL (National Multi Commodity Exchange of India Limited)
NMCE is the first demutualized electronic commodity exchange of India granted the National
exchange on Govt. of India and operational since 26th Nov, 2002. Promoters of NMCE are Central
Warehousing Corporation (CWC), National Agricultural Cooperative Marketing Federation of India
(NAFED), National Institute of Agricultural Marketing (NIAM) and Neptune Overseas Ltd. (NOL).
Main equity holders are PNB. The Head Office of NMCE is located in Ahmedabad. There are various
commodity trades on NMCE Platform including Agro and non-agro commodities.
ICEX (Indian Commodity Exchange Limited)
ICEX is latest commodity exchange of India Started Function from 27 Nov, 09. It is jointly
promote by India bulls Financial Services Ltd. and MMTC Ltd. and has Indian Potash Ltd. KRIBHCO
and IFC among others, as its partners having its head office located at Gurgaon (Haryana). BSE is
also planning to set up a Commodity exchange.

LIFE OF THE CONTRACTS
The life of a commodity futures contract is the period when the contract will be available
for trading. It varies from one month to a few months in India as of now. At NCDEX trades
commodity futures contracts having one-month, two-month and three-month expiry cycles, it was
depending on availability of seller and buyer. All contracts expire on the 20th of the expiry month.
Thus a January expiration contract would expire on the 20th of January and a February expiry
contract would cease trading on the 20th February. If the 20th of the expiry month is a trading
holiday, the contracts shall expire on the previous trading day. If the preceding day is suddenly
declared a holiday, then the contract shall expire on the succeeding working day. New contracts will
be introduced on the trading day following the expiry of the near month contract.
At MCX the expiry day is 15th of every month. If 15th happens to be a holiday the expiry
day will be the previous working day. If the preceding day is suddenly declared a holiday, then the
contract shall expire on the succeeding working day. The expiry day also differs for different
commodities in both the exchanges.
TRADING HOURS OF COMMODITY EXCHANGE
Week-Days: Commodity Exchanges (MCX and NCDEX) function from 10.00 AM to 11.55
PM with a break of 30 minutes between 5.00 PM and 5.30 PM. Agri-commodities are available for
futures trading up to 5:00 p.m. whereas other commodities such as Bullions, Metals, Energy
products and International reference able agri-commodities as notified by FMC are available up to
11.55pm.
Saturday: Commodity Exchanges (MCX and NCDEX) function from 10:00 A.M. to 02:00 P.M
(Applicable for all commodities)

ANAND RATHI FINANCIAL SERVICE LIMITED
Anand Rathi Financial Service Ltd. is a leading full service securities firm providing the entire
gamut of financial services. The firm, founded in 1994 by Mr. Anand Rathi, today has a pan India
presence as well as an international presence through offices in Dubai and Bangkok. Anand Rathi
provides a breadth of financial and advisory services including wealth management, investment
banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and
insurance, structured products - all of which are supported by powerful research teams.
AnandRathi has over 300+ easily accessible investment outlets spread across country covering all
the states for the convenience and the benefit of more than 100 thousand privileged customers.
The firm's philosophy is entirely client centric, with a clear focus on providing long term
value addition to clients, while maintaining the highest standards of excellence, ethics and
professionalism. The entire firm activities are divided across distinct client groups: Individuals &
Private Clients, Corporates and Institutions and was recently ranked by Asia Money 2006 poll
amongst South Asia's top 5 wealth managers for the ultra-rich.
VISION STATEMENT
Anand Rathi is entirely client centric and believes in long term relationship with its
customers and employees. Anand Rathi vision is;
“To be a shining example to the industry as a leader in innovation, and the first choice for clients
and employees”
MISSION STATEMENT
AnandRathi is a premier consultancy firm launched with the belief in Team Work aimed
with the following missions;
• To be amongst the top 5 service providers of financial services.
• Adding tangible value to clients.
• Serving clients with the highest standards of excellence, ethics and professionalism.
• To be India’s Multinational providing complete Financial Solution across the Globe.

MANAGEMENT OF ANAND RATHI
GROUP HISTORY – MILESTONES
1994:
Started activities in consulting and
Institutional equity sales with staff of 15
1995:
Set up a research desk and empanelled
with major institutional investors
1997:
Introduced investment banking businesses
Retail brokerage services launched
1999:
Lead managed first IPO
2001:
Initiated Wealth Management Services

2002:
Retail business expansion recommences with ownership model
2003:
Wealth Management assets cross Rs1500 cr.
Retail Branch network exceeds 50
Insurance broking launched
Launch of Wealth Management services in Dubai
2004:
Retail Branch network expands across 100 locations within India
Commodities brokerage and real estate services introduced
Wealth Management assets cross Rs3000crores
Institutional equities business launched and senior research team put in place
2005:
Retail Branch network expands across 130 locations within India
Real Estate Private Equity Fund Launched
2006:
Anand Rathi Middle East, WOS acquires membership of Dubai Gold & Commodity Exchange
(DGCX)
Ranked amongst South Asia's top 5 wealth managers for the ultra-rich by Asia Money 2006 poll
Ranked 6th in FY2006 for All India Broker Performance in equity distribution in the High Net worth
Individuals (HNI) Category
Ranked 9th in the Retail Category having more than 5% market share
Completes its presence in all States across the country with offices at 300+ locations within India
2007:
Citigroup Venture Capital International picks up 19.9% equity stake
Retail customer base crosses 100 thousand
Establishes presence in over 350 locations
AREA OF OPERATION
Anand Rathi (AR) set up in 1994, is one of India’s fastest growing full-service securities firm
with a presence in more than 350 locations across India and has offices in Dubai & Bangkok. It has
daily turnover in excess of Rs. 4 billion. It has 1, 00,000 plus (+) clients nationwide. Anand Rathi
provides wealth management services, investment banking, brokerage & distribution services in the
areas of equities, commodities, mutual funds and insurance.

SWOT ANALYSIS
Strength
 India’s Leading Broking House
 Online and Offline Trading facility
 The company is a distribution house of other products like Life Insurance, General Insurance
and Mutual Fund.
Weakness
 The company is not having its own product unless Demat and Trading Account.
 Limited service for small investors.
Opportunity
 The financial sector is on boom in Indian Economy, this is the biggest opportunity for a
broking house.
 Entry of new young investors.
Threat
 Many new Brokers are entering in this field.
 Many Competitors create the price war in the market.
COMPETITORS IN BIJAPUR
 KOTAK SECURITIES
 GEOJIT
 INDITRADE
 INDIABULLS
 KARVY SECURITIES
 JRG
 MOTILAL OSWAL
 ICICI DIRECT.COM
 HDFC INVESTMENTS
 JEERAC
 RELIGARE
 VERSATILE
 ALTOS

CORPORATE STRUCTURE
SERVICES PROVIDED BY ANAND RATHI TO ITS CUSTOMERS
 Equity & Derivatives Brokerage
 COMMODITIES
 Currency
 Mutual Funds
 Insurance
 Depository Services
 IPO’s
 NRI’s
 KUBER
Anand Rathi Financial Services Limited
Anand Rathi
(International)
International
Operations
Anand Rathi
Middle East
DMCC
Member,
Dubai Gold &
Commodities
Exchange
Anand Rathi
Insurance Brokers
Insurance
Broking
Anand Rathi
Venture Funds
Management
Real Estate
Private Equity
Rathi Global
Finance
NBFC
Anand Rathi
Commodities
Limited
Member –
NCDEX, MCX
& NMCEIL
Anand Rathi
Share and Stock
Brokers
• Member -
NSE
• Depository
Participant
NSDL
• Wealth Management
• Investment Banking
• Institutional Equities
• Investment Service
- Indian Investment (www.rathionline.com)
- Global Investment
- Depository Participant - CDSL
(www.rathi.com)

Equity & Derivatives Brokerage:
Anand Rathi provides end-to-end equity solutions to institutional and individual investors.
Consistent delivery of high quality advice on individual stocks, sector trends and investment
strategy has established a competent and reliable research unit across the country.
Clients can trade through online on BSE and NSE for both equities and derivatives. They are
supported by dedicated sales & trading teams in trading desks across the country. Research and
investment ideas can be accessed by clients either through their designated dealers, email, web or
SMS.
Commodities:
Anand Rathi commodities broking services include online futures trading through NCDEX
and MCX and depository services through CDSL. Commodities broking is supported by a dedicated
research cell that provides both technical as well as fundamental research. Our research covers a
broad range of traded commodities including precious and Base Metals, Oils and Oilseeds, Agri-
Commodities such as Wheat, Chana, Guar, Sugar, Cotton, Guar Gum And Spices Such As, Jeera,
Dhaniya, Turmeric (Halkund), Chilli, Elaichi, Mustards seeds and, Menthi oil.
In addition to transaction execution, we provide our clients customized advice on hedging
strategies, investment ideas and arbitrage opportunities.
Currency:
Currency trading is the act of buying and selling international currencies. Very often, banks
and financial trading institutions engage in the act of currency trading. Individual investors can also
engage in currency trading, attempting to benefit from variations in the exchange rate of the
currencies.
Mutual Funds:
Anand Rathi is one of India's top mutual fund distribution houses. Their success lies in their
philosophy of providing consistently superior, independent and unbiased advice to their clients
backed by in-depth research. They firmly believe in the importance of selecting appropriate asset
allocations based on the client's risk profile.
Insurance Broking:
As an insurance broker, Anand Rathi provides to his clients comprehensive risk management
techniques, both within the business as well as on the personal front. Risk management includes
identification, measurement and assessment of the risk and handling of the risk, of which insurance
is an integral part. The firm deals with both life insurance and general insurance products across all
insurance companies.

Depository Services:
Anand Rathi Depository Services provides with a secure and convenient way for holding
your securities on both CDSL and NSDL.
Anand Rathi depository services include settlement, clearing and custody of securities,
registration of shares and dematerialization. Also offer daily updated internet access to holding
statement and transaction summary.
IPO’s:
Anand Rathi is a leading primary market distributor across the country. Our strong
performance in IPOs has been a result of our vast experience in the Primary Market, a wide
network of branches across India, strong distribution capabilities and a dedicated research team.
Our IPO research team provides clients with in-depth overviews of forthcoming IPOs as well as
investment recommendations. Online filling of forms is also available.
NRI’s:
Anand Rathi is the perfect gateway to the wealth of investment opportunities in India for
Non-Resident Indians. With a dedicated NRI desk in India and Relationship Managers in the own
country, clients can get the best of both the worlds - real understanding of client’s investment
needs as well on-the-ground expertise.
KUBER:
The Advanced Portfolio Tracker through our web site is available only for Registered
Account holders of AnandRathi
The Portfolio Tracker is an intuitive and easy to use tool which helps you keep track of your
investments in Equities, Mutual Funds, Fixed Deposits, Gold, and Cash Balances. The portfolio is
valued on a real-time basis.
You can also track your trading positions in Futures & Options, Commodities and Currency.
It gives you a 360-degree view about how your investments are performing. Its unmatched
features, reports and tools will help you in your investment decisions.

WORK FLOW - HOW TO TRADE IN COMMODITY FUTURES IN INDIA
These exchanges have electronic trading and settlement systems making it easy to trade in
commodity futures. Trading on these exchanges does not require the investor to possess physical
stocks. In fact less than 1% of the total traded volume involves the transfer of physical
commodities.
Trading in commodity futures comprises of three simple steps.
Step One: Choosing a Broker
Step Two: Depositing the Margin
Step Three: Access to Information and a Trading Plan
Then, Process Flow in Commodity Futures Trading
All the above steps are common when investing in any of the Commodity Exchanges like MCX &
NCDEX.
Choosing a Broker
The broker you choose should be a member of the exchanges you wish to trade in. The
relationship between the broker and the client is long-term. Thus there must be a strong rapport,
and mutual trust between the client and the broker.
Further, the client must communicate clearly to the broker his needs and objectives for trading in
commodities, whether they are for the purpose of hedging, investment, etc. Further, your
objectives for entering the market provide you with a valuable parameter to judge whether a
broker fits your needs.
Depositing the Margin
To begin trading, the investor needs to deposit a margin with his broker. Margin
requirements are of two types, the initial margin and the maintenance margin. These margin
requirements vary across commodities and exchanges but typically, the initial margin ranges from
5-10% of the contract value.
The maintenance margin is usually lower than the initial margin. The investor's position is marked
to market daily and any profit or loss is adjusted to his margin account. The investor has the option
to withdraw any extra funds from his margin account if his position generates a gain. Also, if the
account falls below the maintenance margin, a margin call is generated from the broker and the
investor needs to replenish his account to the initial level.

Access to Information and a Trading Plan
As commodity futures are not long-term investments, their performance needs to be
monitored. The investor should have access to the prevailing prices on the exchanges as well as
market information that can help predict price movements. Brokers provide research and analysis
to their clients. Other information sources are financial dailies, specialized magazines on
commodities and the internet. Further, an investor requires a trading plan. Such a trading plan can
be developed in consultation with the broker. In any case, the investor has to remember to ride his
profits and cut his losses by using stop loss orders.
Process Flow in Commodity Futures Trading
An investor places a trade order with the broker (at the dealing desk) on phone. The dealer
puts the order in exchange trading system. At the initiation of the trade, a price is set and initial
margin money is deposited in the account. At the end of the day, a settlement price is determined
by the clearing house (Exchange). Depending on if the markets have moved in favor or against the
investors' position the funds are either being drawn from or added to the client's account. The
amount is the difference in the traded price and the settlement price. On next day, the settlement
price is used as the base price. As the spot market prices changes every day, a new settlement price
is determined at the end of every day. Again, the account will be adjusted by the difference in the
new settlement price and the previous night's price in the appropriate manner.

PARTICIPANTS FOR COMMODITY MARKET
Participants who trade in the derivatives market can be classified under the following three broad
categories:
1. Hedgers
2. Speculators
3. Arbitragers
Hedgers
A Hedger can be Farmers, manufacturers, importers and exporter. A hedger buys or sells in
the futures market to secure the future price of a commodity intended to be sold at a later date in
the cash market. This helps protect against price risks.
They participate in the market to manage their spot market price risk. Commodity prices are
volatile and their participation in the futures market allows them to hedge or protect themselves
against the risk of losses from fluctuating prices. For example a copper smelter will hedge by selling
copper futures, since it is exposed to the risk of falling copper prices.
Speculators
They are traders who speculate on the direction of the futures prices with the intention of
making money. Thus, for the speculators, trading in commodity futures is an investment option.
Most Speculators do not prefer to make or accept deliveries of the actual commodities; rather they
liquidate their positions before the expiry date of the contract.
Arbitrageurs
They are traders who buy and sell to make money on price differentials across different
markets. Arbitrage involves simultaneous sale and purchase of the same commodities in different
markets. Arbitrage keeps the prices in different markets in line with each other. Usually such
transactions are risk free.
The market functions because of the differing risk profiles of the market participants. The
fluctuation in commodity prices represents both, a risk and a potential for profit. The hedgers
transfer this risk by foregoing the associated profit potential. The speculators assume this risk in the
hope of realizing profits by predicting price movements. The arbitrageurs make the process of price
discovery more efficient.

RESEARCH METHODOLOGY
TOPIC OF STUDY
I have taken the commodity futures, “To Study and Analyze Select Commodity Price
Fluctuations in Commodity Market”, at ANAND RATHI SHARE & STOCK BROKERS LTD – VIJAYAPUR
OBJECTIVE OF STUDY
To find out the feasibility of setting up ANAND RATHI’S Commodity branch at Vijayapur.
 To understand the trading mechanisms & how the online commodity works.
 To study the market characteristics of Selected Commodities (Coriander, Jeera, Turmeric,
Cardamom).
 To study the Influencing price fluctuation in Commodity Market.
DATA COLLECTION
Sources of Data Collection
Primary Data – Data collected through interaction with dealers, and Manager of Anand
Rathi. The primary data was also collected through the interaction with various APMC and Kirana
Market Trader.
Secondary Data – Information collected from different websites likes NCDEX, MCX, and
Rathionline etc. Relating to this study the sources were Magazines, Newspapers, Articles &
Textbooks.
Tool used for Analyses – Future Market Price Table & Graphs
LIMITATION OF STUDY
 The study was concentrated mainly on Indian Scenario.
 The study is restricted to only few commodities, as the data for certain commodities was
not available.
 The majority of data collected from secondary source.
 The study is restricted to only a day price fluctuation of charts, as the data for certain month
price fluctuation is not available.

Turmeric (Halkund)
July 2004
Cumin seeds (Jeera)
February 2005
Cardamom (Elaichi)
February 2006
Cariander (Dhaniya)
August 2008
SELECT COMMODITY CATEGORY
AGRO PRODUCT: SPICES
‘Spices’ are aromatic substances of a plant origin, obtained from roots, flowers, fruits, seeds,
leaves or bark. They form a dried part of a plant, which essentially distinguishes them from ‘Herbs’,
which are obtained from the leaves of herbaceous (non-woody) plants.
The use of spice in food has started from time immemorial but they have found new
applications in the course of history as ingredients of medicines, perfumes, incense, soaps and
many pharmaceutical products.
INDIA IS A GLOBAL SPICE HUB
 India is known as the 'The home of spices'.
 India is the leading producer, consumer and exporter of spices in the world and meets
nearly half of the global demand for spices.
 Spices are produced almost in all states of India.
 A whopping 75 spices out of 109 listed by ISO are produced in India.
TRADING IN SPICES ON COMMODITY EXCHANGES IN INDIA
NCDEX offers futures contracts in Three major spices, viz. Coriander, Jeera, and Turmeric.
Trading in spices futures has always seen huge turnover in terms of volume as well as value since
the introduction the first spice futures contract on the exchange platform in the year 2004. MCX
offers futures contracts in spices, viz., Cardamom.

Farmer
Commission
Agent
Trader Processor
Wholesaler Ratailer Consumer
STUDY ON COMMODITIES
 Coriander (Dhaniya)
 Cumin seeds (Jeera)
 Turmeric (Halkund)
 Cardamom (Elaichi)
SPICES FUTURES CONTRACTS SPECIFICATIONS
Parameter Coriander Jeera Turmeric Cardamom
Ticker Symbol DHANIYA JEERAUNJHA TMCFGRNZM CARDAMOM
Unit of Trading 10 MT
(10000 kg)
3 MT
(10000 kg)
5 MT
(10000 kg)
100 KG
(1 quintal)
Delivery Unit
10 MT
(10000 kg)
3 MT
(10000 kg)
5 MT
(10000 kg)
100 KG
(1 quintal)
Quotation/
Base Value
Rs/quintal* Rs/quintal* Rs/quintal* Rs/ kg*
Maximum
order size
500 MT
(500000 kg)
150 MT
(150000 kg)
250 MT
(250000 kg)
5 MT
(5000 kg or 50
quintal)
Basis Centre Kota Unjha Nizamabad Bodinayakanur
Additional
Delivery Centre
Ramganj Mandi,
Jaipur, Guna,
Baran
Delhi, Jaipur,
Jodhpur
Erode, Sangli,
Warangal,
Duggirala,
Cuddapah
Vandanmedu
Grade Badami, Eagle,
Scooter
Machine Clean
Jeera
Unpolished
Finger, Rajapuri,
Salem, and Erode
6-mm, 6.5-mm, 7-
mm, and above
(max. 8-mm)
Delivery logic Compulsory
Delivery
Compulsory
Delivery
Compulsory
Delivery
Compulsory
Delivery
VALUE CHAIN
- All Participants in The Value Chain Face The Price Risk

DATA ANALYSIS
CORIANDER (DHANIYA)
Coriander, an annual rabbi crop of the country is sown around the first week of November
and Harvested from February and April. About 80% of the production in India comes from
Rajasthan. The other major producing states are Madhya Pradesh, Andhra Pradesh and Orissa. The
Total Domestic production of the crop is around 2.5-3.00 lakh tonnes. Indonesia, Srilanka, UAE,
Saudi Arabia, USA, UK, Germany and the Netherlands are the major importers whereas India,
Turkey, Egypt, Romania, Morocco, Iran and China are chief exporters. Domestically major varieties
are Badami, Eagle, Scooter, Double Parrot, Single Parrot, and Super Green. Badami variety accounts
to about 65 to 70% of total production. Major trading centers of this Flavoring spice include Kota,
Ramganj, Baran and Jaipur in Rajasthan, Guna in Madhya Pradesh and Virudnagar in Tamilnadu.
India is the largest producer, consumer and exporter of coriander. Coriander futures contract was
launched on NCDEX platform on August 2008. India is the world’s largest producer and consumer of
Coriander. India contributes around 50-60% in the total world production, while domestic
consumption in India is been estimated around 4 lakh tonnes.
MAJOR MARKETS
Spot Markets
Rajasthan - Ramganj, Kota, Baran
MP - Neemuch, Kumbhraj
Gujarat - Rajkot
TN - Thiruchirappilly, Virudhunagar
AP - Guntur, Varavakonda, Nandyal
Futures Markets - Coriander futures in India are traded on NCDEX
FACTOR INFLUENCING PRICE OF CORIANDER
 Climate Condition, It requires cool climate during growth stage and warm dry climate at
maturity. It can be cultivated in all most all types of soils but well drained loamy soil suits well.
Extent of area sown under the crop, condition of the crop and output expectation. Rainfall and
weather conditions that could affect the crop output.
 Domestic Supply & Demand, Any changes in demand both domestic as well as international
markets
 World Production & Export (Malaysia, Pakistan, South Africa, Saudi Arabia, U.K).
 Sowing & harvesting, sown during 15th October to 15th November in an area free from severe
frost during February when the crop flowers and sets its seeds. The crop matures in about 110
to 140 days. At maturity, seeds turn to yellowish green colour.
 Trade policies, any change in government policy relating to change in tariffs etc.

NCDEX CORIANDER (DHANIYA) FUTURES

Contract Open High Low Close LTP Chg. %
Chg.
Avg. Spot
Price
Best
Buy
Best
Sell
20 Jan 16 8,810 8,810 8,515 8,800 8,585 -215 -2.44 8,606.87 10,020.55 8,585 8,600
18 Mar 16 8,195 8,195 7,880 8,175 7,965 -210 -2.57 7,961.65 10,020.55 7,957 7,974
20 Apr 16 8,050 8,050 8,050 8,175 8,050 -125 -1.53 8,050.00 10,020.55 8,010 8,200
MARKET ANALYSIS
Coriander futures are trading with a negative bias on reports of higher stocks. Higher
acreage compared with last year's level in the major producing states of Rajasthan, Gujarat, and
Madhya Pradesh has also dampened coriander prices. However, improved demand and reports of
slow progress of sowing activities in major areas due to high temperature limit sharp fall in prices.
India’s total coriander output in 2014-15 is now seen at 344000 tonnes, up from 314000 tonnes
estimated earlier, the farm ministry said in its third estimate. In 2014-15, India's coriander imports
were pegged at 9750 tonnes, while the number was 4640 tonnes in the preceding year, data from
Spices Board of India.
Coriander prices were down -2.44% to Rs 8,585 per quintal in futures trade. At the National
Commodity and Derivatives Exchange, coriander for January next year contract was trading Rs -215,
or -2.44% lower at Rs 8,585 per quintal with an open interest of 17,020 lots.
Similarly, the spice for delivery in March & April 2016 is also traded lower by Rs -210 & -125,
or -2.57% & -1.53%, to Rs 7,965 & Rs.8,050 per quintal respectively, with an open interest of 3,120
lots. The spot price of Dhaniya is 10,020.5/100 kg (Kota).

CUMIN SEEDS (JEERA)
Gujarat is the largest Jeera producing state in the country, followed by Rajasthan. These two
states alone contribute approximately 90% of production in the country. Small quantities of Jeera
are also produced in Uttar Pradesh and Madhya Pradesh. Production of Jeera has declined sharply
by 15%, as farmers shifted to other crops due to damage incurred by non-seasonal rainfall in
Rajasthan and Gujarat. India leads the world production with around 2.0 lakh MT of Jeera produced
annually and harvesting session of the crop is from February - April. Most of the Jeera produced is
consumed within the country. Jeera futures contract was launched on NCDEX platform on February
2005 and has witnessed considerable volatility since its launch. Jeera futures prices witnessed a
sharp rally of 12% at NCDEX platform.
Jeera grows well in both tropical and sub-tropical climate and it comes up well in all types of
soils but well drained sandy loam soils are best suited. It thrives well between 9° to 26° C and
annual rainfall of 30 to 270 cms Crop duration is 110-120 days depending on the variety. Unlike
other tropical plants, it requires relatively less water and rainfall during the harvesting period is
unfavorable for the seed quality.
MAJOR MARKETS
Spot Markets
Gujarat - Unjha, Rajkot
Rajasthan - Kekri, Nagaur, Jodhpur, Palli, Jaipur
Futures Markets - Futures are offered on NCDEX
FACTOR INFLUENCING PRICE OF JEERA
 Climate Condition, Extent of area sown under the crop, condition of the crop and output
expectation. Rainfall and weather conditions that could affect the crop output.
 Jeera crop is highly sensitive to rain. High humidity during flowering & fruit bearing stage causes
fungal diseases in this crop.
 Sowing & harvesting, sown held in winter season during 15th October to 15th December. It
takes 120-125 days for the plant to mature and the plant gets ready to harvest when it turns
yellowish brown in February to March.
 The quality of cumin seeds of Rajasthan is better than that of Gujarat, but due to the high stalk
content its price is usually lower than the cumin seed produced in Gujarat.
 World Production & Export (Brazil, USA, Pakistan, Malaysia, Nepal).
 Domestic Supply & Demand, demand supply situation in major sources.

NCDEX JEERA FUTURES

Chg.
Avg. Spot
Price
Best
Buy
Best
Sell
20 Jan 16 14,500 14,500 14,300 14,595 14,360 -235 -1.61 14,399 15,300 14,370 14,395
18 Mar 16 14,400 14,450 14,335 14,600 14,360 -240 -1.64 14,378 15,300 14,355 14,385
20 Apr 16 14,505 14,505 14,450 14,685 14,485 -200 -1.36 14,466 15,300 14,440 14,505
MARKET ANALYSIS
Jeera futures are trading with a negative bias due to reports of sluggish export and domestic
demand. However, reports of slow progress of sowing due to unfavorable weather in major
growing areas may limit sharp fall in prices. According to Dept. of Commerce data, the export of
Jeera during first 5 month of 2015-16 (July-Dec) is 44,140 tonnes, which is, lower as compared to
last year same period.
Jeera exports from India are likely to decline by about 40-45 per cent to around 85,000-
1,00,000 tonnes during 2015- 16 compared to estimated exports of around 1.55% in last year. Jeera
prices were down -1.61% to Rs 14,360 per quintal in futures trade. At the National Commodity and
Derivatives Exchange, Jeera for the January next year contract was trading Rs -235, or -1.61% lower
at Rs 14,360 per quintal with average trade of Rs. 14,399.
Similarly, the spice for delivery in March & April 2016 is also traded lower by Rs -240 & -200,
or -1.64% & -1.36%, to Rs 14,360 & Rs.14,485 per quintal respectively with the spot price of Jeera is
15,300/100 kg (Unjha).

TURMERIC (HALKUND)
Turmeric is also an important ingredient in cosmetics as well as in the pharmaceutical
industry. It is mainly cultivated in Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, Orissa and
West Bengal, with production ranging from 5.5 to 8.0 lakh tonnes and harvesting session is from
February to April. India is the largest producer, consumer and exporter of turmeric across the globe.
The crop cannot stand water logging or alkalinity and is very sensitive to low atmospheric
temperature. Turmeric is used to favour and to colour foodstuffs. The other major producers are
China, Myanmar, Nigeria, Bangladesh, Pakistan, Sri Lanka, Taiwan, Burma and Indonesia. Important
turmeric varieties exported include Allepey finger turmeric, Rajapuri, Salem, and Erode variety.
Turmeric futures contract was launched on NCDEX platform in July 2004 and since then it
has witnessed considerable participation from various supply chain participants. Using futures
platform producers can minimize their price risk. With ever increasing export demand, exporters
can insure themselves against price risk.
Major Markets
Spot Markets – Erode, Sangli, Duggirala, Tenali, Cuddapah, Adilabad, Medak, Nizamabad, Guntur
Futures Market - Futures trading in Cardamom is offered on NCDEX
FACTOR INFLUENCING PRICE OF TURMERIC
 Climate Conditions, (hot and humid) it grows in light black, black clayey loams and red soils in
irrigated and rained conditions with temperature ranging between 20 to 30 degrees.
 Sowing and Harvesting, Its sowing begins in June and extends up to August. The crop is
harvested when the leaves turn yellowish after 7 to 10 months of plantation and start drying
up.
 International trading price.
 Domestic and Export demand.

NCDEX TURMERIC FUTURES

Chg.
Avg. Spot
Price
Best
Buy
Best
Sell
20 Apr 16 9,852 10,080 9,852 9,868 10,010 142 1.44 10,009.9 10,500 10,020 10,008
20 May 16 10,050 10,228 10,050 10,070 10,168 98 0.97 10,164.8 10,500 10,144 14,385
20 Jun 16 10,300 10,300 10,300 10,210 10,300 90 0.88 10,300.0 10,500 10,266 10,308
MARKET ANALYSIS
Turmeric prices are expected to trade higher due to estimated fall in acreage in major
turmeric producing states. Meanwhile, weak demand due to heavy rain in Chennai limit sharp rise
in prices. Also, there are concerns that dry conditions in Telangana and Maharashtra may affect
turmeric production this year. By December 2015, total turmeric stocks in India are expected at
around 1.2 to 1.3 million bags, compared with 2.5 million bags a year ago. Conversely, there are
reports that Erode is likely to compensate for the projection of declines in production in other areas
due to recent heavy rains.
Turmeric prices were up 1.44% to Rs 10,010 per quintal in futures trade. At the National
Commodity and Derivatives Exchange, Turmeric for April 2016 next year contract was trading Rs
142 or 1.44% higher at Rs 10,010 per quintal with average trade of Rs. 10,009.
Similarly, the spice for delivery in May & June 2016 is also traded higher by Rs 98 & 90, or
0.97% & 0.88%, to Rs 10,168 & Rs.10,300 per quintal respectively with the spot price of Turmeric is
10,500/100 kg (Sangli).

CARDAMOM (ELAICHI)
Cardamom is known as the “Queen of Spices”. It is the world's third-most expensive spice. It
grew as wild herbs in the monsoon forests of the Western Ghats in southern India. Gautemala and
Bodinayakanur in Madurai District of Tamil Nadu State is the largest cardamom producing country
followed by India. India is a major producer and consumer of cardamom, holding the second spot in
world production. The major production season in India is from August to March–April, though
officially the new crop year starts from August. India produces about 14000-14500 tons (including
small and large cardamom). An important Cardamom variety is 6-mm, 6.5-mm, 7-mm, and above
grade (max. 8-mm) with fancy green colour commands a premium over other grades.
Cardamom futures contract was launched on MCX platform on February 2006 and has
witnessed considerable volatility since its launch. The underlie of the MCX Cardamom contract is
Elettaria cardamom, also known as Small Green Cardamom (Elaichi), grown in the southern states
of Kerala, Tamil Nadu and Karnataka. Amomum cardamom, also known as black cardamom (Jangly
Elaichi) grown in North Eastern states is not tradable on the MCX platform.
FACTOR INFLUENCING PRICE OF CARDAMOM
 Weather conditions in India, especially the onset of rains.
 Government policies with regard to import and exports.
 Global and Domestic Production /Demand.
 Cost of Carry components (Warehousing, Assaying, Demat charges)
 Seasonal variations and time of arrival of the crop in the market.
 Year ending stocks and stocks-to-consumption ratio.
NCDEX CARDAMOM FUTURES

Chg.
Avg. Spot
Price
Best
Buy
Best
Sell
15 Jan 16 695.5 697.3 676.3 700.5 681.7 -18.8 -2.68 685.32 725 679.6 684.4
15 Feb 16 736.7 737.4 728 741.5 735.1 -6.40 -0.86 733.46 725 732 734.8
15 Mar 16 759.3 765.8 758.4 767.7 762.9 -4.80 -0.63 760.91 725 760.5 765.0

Major Markets
Spot Markets - Vandanmedu, Bodinayakanur, Kumily, Nedumkandom and Puliyanmala.
Futures Markets - Futures trading in Cardamom is offered on Multi Commodity Exchange of India
Ltd (MCX).
MARKET ANALYSIS
Cardamom futures traded with negative bias due to higher arrivals in major spot markets.
Total arrivals of cardamom for the auction on during DEC were around 1017 tonnes with the spot
price on an average quoted as Rs.725 per kg. The maximum price was Rs. 696 per kg. According to
the Spices Board, Indian cardamom output has been rising steadily from 10,380 tonnes in 2010-11
to 15,000 the next fiscal and to 16,000 tonnes in 2013-14. In 2014-15, it is estimated at 18,000
tonnes. The trade estimates put the production in 2015-16 at around 30,000 tonnes.
Sharp rise in cardamom production in the country in recent years without a corresponding
growth in export and domestic demand is pulling its prices to below remunerative levels.
The contract for January was trading at Rs 681.7/Kg , down by 2.68% or Rs -18.8 from its
previous closing of Rs 700.5/Kg. The open interest of the contract stood at 1071.00 lots.
The contract for February was trading at Rs 735.1/Kg , down by 0.16% or Rs -6.40 from its
previous closing of Rs 741.5/Kg. The open interest of the contract stood at 537.00 lots on MCX. The
spot price of Cardamom is 725/1kg (Telangana).
Cardamom Historical Performance

SUMMARY OF FINDING
 There is lack of awareness of commodity market at Anand Rathi.
 Majority of investor at Anand Rathi prefer to invest in Equity Market, Slowly Investors are
attracting towards Commodity Market.
 The investors at Anand Rathi prefer MCX over NCDEX for the investing in commodities while
no one prefer to invest in the exchanges like NMCE, NBOT.
 It was found that most of the investors (as well as farmers) found it very difficult to
understand the operations of commodity exchange.
 It was found that the prices of the commodities are seasonal, i.e. low at the harvesting time
and high at the sowing time.
 The price of commodity also depends upon value of export & import of commodity.
 Indian coriander production for the crop year 2014-15 is estimated to be around 380
thousand tonnes against the last year production of 300 thousand tonnes. Current year
2015-16 production is 3% higher compared to last three years’ average production of 368
thousand tonnes, leading to the increase in the supply and hence the overall trend of the
Coriander (Dhaniya) seems to be bearish.
 The projected yield Cumin seeds (Jeera) for the 2015-16 is 4 Lakh tonnes compared to 2.5
Lakh in 2014-15, leading to the increase in the supply and hence the overall trend of the
Cumin seeds (Jeera) seems to be bearish.
 Dec – Mar 2016; Turmeric futures may trade higher due to reports of limited arrivals and
good demand for the spice in major spot markets at Erode (T.N) and Sangli (MH).
 Cardamom output has been rising steadily from 10,380 tonnes in 2010-11 to 15,000 the
next fiscal and to 16,000 tonnes in 2013-14. In 2014-15, it is estimated at 18,000 tonnes. The
trade estimates put the production in 2015-16 at around 30,000 tonnes. Hence, trend of the
Cardamom seems to may remain stable in the range of 650 - 735 levels.
 In the bullish market, the investors can earn profits by buying the commodity futures.
 In the bearish market, the investors can earn profits by selling the commodity futures.

SUGGESTIONS
 Anand Rathi should take effective measures to create awareness about Commodity Market.
 The government along with commodity exchanges should take effective measures to
develop user friendly investment environment.
 The commodities are very complex financial instruments. Hence the investor should take at
most care while trading.
 The analysis shows the Continues downfall in Cumin Seeds (Jeera) and Coriander (Dhaniya).
Hence, recommend to SELL on pullbacks.
 Currently Coriander is in SELL position Coriander is in sideways but the trend looks weak so
better SELL above 8,600 or HOLD with stop at 8,200.
 Recommended to buy Cumin Seeds (Jeera), it may trade with higher price at future in
month of May-June 2016, because of higher consumption so that best buying option above
Rs. 14, 370.
 Turmeric futures prices extended its bullish trend due to declined arrivals in spot markets.
Hence, recommend to BUY for Rs.10, 020 and HOLD price might be trade at higher in month
of Jan – Mar 2016. The demand may increase in coming days as the supply may squeeze
from here on.
 It was found that most of clients were satisfied with online mode of trading, followed by
mode of Tele calling. So, recommend to continues as same above.
 The investor should keep regular check of the market as the market fluctuates anytime.

CONCLUSION
It was a great experience to work with Anand Rathi Share & Stock Brokers Ltd. It is India's
leading broking house. As the company has given me a chance to work in there company on a topic
Analyze Select Commodity Price Fluctuations in Commodity Market. While working on this project I
had a good learning experience, because it involved a completely new environment. Dealing with
Manager of Anand Rathi gave me valuable insight in to the Specialization Study.
These, Commodities are the risk management instruments which transfers the pricing risks
to other parties. Commodities are also very complex financial instruments. Hence the investor
should take at most care while trading. It seems to be electronic gambling with two parties. Clients
even can’t make profit of 25 of total investment invested by them. As we say that client make a
good profit in particular commodity, again make impulse of buying more quantity and it might be a
wrong decision, later on they bear a huge loss on investments. So investing in commodities is risky
but useful.

BIBLIOGRAPHY
WEB SITES VISITED
www.rathionline.com
www.rathi.com
www.ncdex.com
www.mcxindia.com
www.moneycontrol.com
www.indianspices.com

CERTIFICATE
This is to certify that the project report is a genuine prepared by
MALLIKARJUN M HOSAMANI of III semester of Bachelor of Business
Administration (B.B.A) course under my guidance and supervision submitted to
A.S. PATIL COLLEGE OF COMMERCE (AUTONOMOUS) as a partial
fulfillment of the award of Bachelor of Business Administration (B.B.A).
Place: Vijayapur
Prof. C. G. Byahatti Prof. Sanjay Hanagandi Dr. S. S. Kulkarni
(Internal Guide) (B.B.A Co-ordinator) (Director)

DECLARATION
I hereby declare that this project report entitled “Organization Study of “RICO
WINERY VINEYARDS & WINE PARK” at VIJAYAPUR has been prepared by me during
the month of Nov – Dec 2014 under the guidance of Prof. C.G. BYAHATTI, management
faculty of A.S. Patil College of Commerce at Vijayapur.
I also declare that this project has not been submitted at any time to any other
university or institute for the award of any degree.
Place: VIJAYAPUR
Date: 25 – 12 – 14

ACKNOWLEDGEMENT
I would like to thank My Institute Director Dr. S. S. KULKARNI, Co-Ordinator
Prof. SANJAY HANAGANDI, & Prof. C.G. BYAHATTI, My internal guide for their
guidance and encouragement throughout the span of project.
My special thanks to Mr. GURURAJ S GIRENNAVAR, General Manager of
“RICO WINERY VINEYARDS & WINE PARK” at VIJAYAPUR District for permitting
me to undergo the project work at their organization.
Lastly, I would like to express my regards to all staff of RICO WINERY PVT. LTD.
for their kind co-operation.

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................1
WINE INDUSTRY IN INDIA ....................................................................................................2
ABOUT WINE........................................................................................................................3
ORGANIZATION INTRODUCTION .........................................................................................4
COMPANY PROFILE OF RICO WINERY..................................................................................5
BACKGROUND OF THE COMPANY .......................................................................................6
BOARD OF DIRECTORS .........................................................................................................6
MISSION, VISION, VALUES & OBJECTIVE .............................................................................7
NATURE OF BUSINESS..........................................................................................................8
PRODUCT PROFILE ...............................................................................................................8
SWOT ANALYSIS.................................................................................................................11
ORGANIZATIONAL STRUCTURE..........................................................................................12
DEPARTMENT STUDY.........................................................................................................13
Production Department .................................................................................................13
Marketing and Sales Department ..................................................................................16
Transportation Department...........................................................................................17
Human Resource Department .......................................................................................18
Finance Department.......................................................................................................19
Excise Department .........................................................................................................20
FUTURE PLANS...................................................................................................................21
FINDINGS............................................................................................................................21
CONCLUSION......................................................................................................................22
BIBLIOGRAPHY ...................................................................................................................23

RICO WINERY PVT. LTD
A.S.PATIL COLLEGE OF COMMERCE (Autonomous), BBA PROGRAMME VIJAYAPUR.
EXECUTIVE SUMMARY
This is a project related to Organization Study with reference to the “RICO
WINERY VINEYARDS & WINE PARK” which produces Red and White Wines at Vijayapur,
Karnataka.
A powerful tool through which a company reaches its target audience, and
conveys the benefits, features, price, and availability of the product, service, or idea in
the offering is marketing. It is the paid form of communicating the message. Marketing
is persuasive, informative, and is designed to influence the purchasing behavior of the
prospective customer.
In an ideal situation, the marketer can directly communicate to the target group
without any impediments. But, in practicality, this does not take place. There exist
certain roadblocks in this exercise. These roadblocks are created either inside the minds
of the consumer/public or have been laid down by a regulatory body. In the latter case,
the Government prohibits the marketing of certain products due to the concern of the
health and safety of its citizens. The products that come under this purview are Tobacco,
Alcohol, and OTC Drugs. This project specifically concentrates only on the organization
study. As the project is deal with the semi alcoholic drink wine.
This organization study undergone has helped me to know the overall view of
“RICO WINERY VINEYARDS & WINE PARK”.

WINE INDUSTRY IN INDIA
The Indian wine market is in a nascent stage. Estimates project an enormous
growth potential of this sector both from the indigenous wine making industry and
imports. The wine market in India is mainly fuelled by the strong growth in the domestic
wine production, but imported wine plays a role in creating awareness and increased
demand. Like most products in India, wine is extremely price sensitive.
Indians are not traditionally a wine drinking country. Due to earlier period of
prohibition in India and higher price compared to spirits like whisky and brandy
manufactured in the country, the manufacture and consumption of wine in India is
insignificant when compared to other countries. The setting up of Champagne Indage’s
plant in 1984 in the state of Maharashtra marked the manufacture of wine on an
organized scale in India. Commercial wine grape production in India has only been in
existence since the 1980.
The Indian wine industry has been steadily growing over the last ten years. Wine
is gradually becoming a part of urban Indian life style. Since India joined the WTO,
import tariffs in the country have been remarkably reduced, thus enabling foreign
exporters tap into India’s vast consumer market. The wine market is gradually opening
up as quantitative restrictions are being lifted, import duties are lowered and domestic
regulations are simplified.
Since the very inception Indians had the native familiarity with wine. This
becomes apparent with the artifacts found at the sites of Harappan Civilization. During
the Vedic period wine was often referred to as Somarasa; it was believed to be
associated with Indra, and was a part of religious festivals. Also the reference to
Drakshasava is found in Ayurveda texts which was basically a delicious preparation
made from ripened red grapes, cinnamon, cardamom, nagkesara, vidanga, tejpatra,
pippali, and black pepper and contained natural alcohol.
But, drinking has always remained a social taboo and therefore no culture of
social drinking could ever develop in India. Even Constitution of India puts a proscription
for liquors in India by Section 47 of the Directive Principle of State Policy declaring that
the State shall endeavor to bring about prohibition of the consumption - except for
medicinal purposes - of intoxicating drinks. India has predominantly remained a non-
drinking country. Now, it is high time to revive the notion of social drinking and
responsible drinking habit with proper regulatory affairs of the state.
Currently in the 21st
century, Wine is seen as a mild drink and in fact considered
being healthier than liquor. This factor has made it popular even amongst women and

the young starters. Youth appeal is important in a country where majority of population
is below the age group of 25. Then the only way to develop the market is by making
wine affordable and accessible to all. Once utility of the drink is proved the consumer
behavior and attitude toward wine would certainly change.
ABOUT WINE
The wine market is in formative stage in India. Today India has 1,23,000 acres of
vineyards, but only around one per cent of them are used for wine. It requires extensive
efforts from all quarters to have a reputed position in India. It is clear that availability of
liquor cannot be unfettered because of health and safety concern. But for responsible
drinkers the availability of choice can be ensured with state acting as a guardian. It is
apparent that the steps taken by the government were not sufficient enough to help the
industry grow at a pace. The present wine market is expanding at the rate of 30 per cent
for imported, 35 per cent for domestic wines. This growth is not only sustainable, but
could even be conservative if duties were lowered.
India followed a system of non-automatic import licensing (quantitative restrictions) to
Bio wines and spirits until April 2001. Under that system, strictly limited quantities of Bio
products were allowed to be imported for sale in certain tourist hotels. Then, import of
liquors including wines was allowed under the Open General License (OGL). No import
license is required for wine and anyone can import wines into a Customs Bonded
Warehouse. However, each label, each size of bottle and each manufacturer has to be
registered with the Department of Excise & Customs against a fee. A distributor has to
obtain a license to distribute liquors. The industry faces threat of prohibition in several
states, high taxes, restrictions on advertising, restrictions on inter-state movement, etc.
Liquor industry in India is highly government regulated in terms of constraints on
manufacturing, storage as well as distribution.
Types of Wine:
1. Premium Wines (Still wines): In this category the Indian market is divided mainly
into two major categories - White and Red wines.
Red Wine: Made from red, purple or blue grapes, its colour comes from the
juice's contact with red grape skins during the fermentation process. Due to its
more complex flavor, red wine is typically served at a warmer temperature than
white.
White Wine: Can be made from white or black grapes, as all grape juice is initially
colorless. Styles range from very dry to sweet, depending on the grapes used.

2. Sparkling Wines: This wine is generally considered to fall within the White wine
category by many consumers
Rose Wine: This pink-colored wine is made when the skins of RED grapes are
left in contact with the juice for a relatively short period of time, until the wine has
achieved sufficient colour. The wine is then processed as a white wine.
Sparkling Wine: Perhaps the quintessential celebratory drink, sparkling wine
is created when a yeast and sugar solution is added to dry table wine. The resulting
fermentation creates tiny bubbles of carbon dioxide in the bottle. The terms
"Champagne" and "sparkling wine" are often used interchangeably, but only those
wines produced in the Champagne region of France can be truly called Champagnes.
ORGANIZATION INTRODUCTION
Rico – an entry level wine, in Karnataka at an affordable price to make it more accessible
to the consumers. Rico has been positioned to appeal to the first time wine drinkers and
break the myth that wine is only an elitist’s drink. It comes in two varieties, red and
white and in a vibrant and colorful package with fresh, fruity notes. To make it an easy
drinking wine, Rico comes with a user-friendly and internationally acclaimed easy cap, as
opposed to the traditional corkscrews, making it easy to open and pack shut. It is
targeted as an anytime beverage, and comes in three convenient sizes –180 ml, 375ml
and 750 ml bottles. Rico in Karnataka will now be available only at Rs.30 for 180 ml and
Rs. 60 for 350ml and Rs. 120 for 750 ml variant.
Rico wines are crafted to suit the vast Indian palate and do not require detailed
knowledge of wine and food pairing making it an ideal beginner’s wine. Rico brand of
wines available in Karnataka is produced at Rico – winery near Vijayapur.
Rico is an easy-going wine that has been made keeping in mind the first time wine
drinkers, and fashioned in a way that attracts the consumers to the world of wines and
makes it more accessible. The aim is to make Rico an everyday beverage that can be
enjoyed anytime without debating on the price or place.
The Rico wine yard has varied business interests, with the core businesses being
beverage alcohol (spirits) and aviation. Rico winery Ltd. has made a timely entry into this
business in 2008, situated 14km from Vijayapur. The wines from the firm are marketed
under the brand name Rico.

COMPANY PROFILE OF RICO WINERY
Name of the company : M/s Rico winery Pvt. Ltd.
Location : Rico winery Pvt. Ltd, 14th
km, NH-13,
VIJAYAPUR-SOLAPUR Highway,
Tq & Dist. Vijayapur 586101, KARNATAKA
Banker : Syndicate Bank
Certification : Registered under companies’ act 1956.
Managing director : Dr. Basavaraj Girennavar.
Brand name of the company : Rico wines
Year of incorporation : 13th
Dec 2008
Constitution : Private Limits Company, governed by BOD
Area occupied : 200 acres.
Products : Grape wine Manufacturing
Technology : Work Vineyards, Napa, California, USA.
Working Shift : Day shift
Weekly Holiday : Sunday
Workers Employed : 30
Labour’s : 60
Final capacity of manufacturing unit: 400,000 Liters per year.

BACKGROUND OF THE COMPANY
Rico winery is located 14km outside the historic city of Vijayapur. The winery is
state-of-the-art with imported Equipment’s and Machinery procured from USA, with
capacity to produce 400,000 liters of wine. Rico Winery promoted by Dynamic
Entrepreneur Dr. Basavaraj Girennavar with Ph.D. from Texas, USA.
Rico have well maintained vineyards spread over 200 acres. Rico vineyards are designed
to harvest soil and sun optimally to produce world class award winning wines. The
climate of Krishna Valley is unique with cool nights and warm day with ideal diurnal
variation needed for producing fine berries.
BOARD OF DIRECTORS
Chairman & MD : Dr. Basavaraj Girennavar.
Directors : Mr. Sangappa Girennavar.
Mr. Arjun Girennavar.

MISSION, VISION, VALUES & OBJECTIVE
Mission
“Our Mission To achieve Rs.100 cores of net turnover; have 5 millionaire case brands,
sell across pan India”
Vision
“Our focus on building our brands & wines, developing & serving the society with world
class premium wines to share our passion for high quality, we try to build 100%
satisfaction guarantee in customer mind about taste & quality.”
Values
“Our Values to consistently deliver products of the highest purity, quality and
affordability, to provide a culture for growth and opportunities to all employees, to
delight our consumers with exciting brands and memorable experiences responsibly, to
keep our environment green and to promote responsible drinking”
Objectives
To achieve customer satisfaction to the highest level and good quality service

NATURE OF BUSINESS
The Rico wine Manufacture of Red grape wine & White grape wine according to
the specification prescribed by the customers in order to meet the customer satisfaction
and requirements.
Presently the company has the production capacity of 4,00,000 liters per annum.
The following is the portfolio of wines.
1. RICO CABERNET SHIRAZ
2. RICO STRONG RED WINE
3. HEARTFORT
4. RICO 99
5. RICO 89
6. RICO STRONG WHITE WINE
7. RICO SAUVIGNON BLANC
8. RICO RED WINE
9. RICO WHITE WINE
PRODUCT PROFILE
RICO CABERNET SHIRAZ
Masterfully blended, smooth, medium bodied red wine.
Cabernet Shiraz brings the best of both the red verities.
Serve slightly chilled, open and Allow to Breath before serving goes
Good with all Indian dishes.
Availability – 375ml & 750ml.
RICO STRONG RED WINE
It is best Red wine made exclusive for the Indian wine lovers with
Indian grape grown in soil of Krishna valley. It is young wine and
Gift from our winery for the wine lovers to taste the unique wine.
It goes well with all Indian dishes.
Availability – 180ml, 375ml, & 750ml.

HEARTFORT
A beauty medium bodied complex wine with intense colour
And rich flavor of black current. Serve slightly chilled open and
Allow to breath for 15-20min before serving. Perfect wine to serve
With Indian cuisine, but also great to drink on its own.
RICO 99
Full bodied wine has tantalizing aromas of green pepper,
Ripe berries with fine lingering finish and a great balance.
Serve at 16-18 C. goes well with chicken, vegetables and spicy dishes.
Availability – 180ml, 375ml & 750ml.
RICO 89
Subtle aromas of spring flowers, a semi-dry, and refreshingly light
Wine aromas are of apricot on the palate. It is enlivened by refreshing
Mouth-watering acidity, structure and, balance. Serve well chilled at 10-12 C.
Goes well with spicy sea food.
RICO STRONG WHITE WINE
It is a best wine made exclusive for The Indian palate with Indian grape
Grown in Krishna valley. It is perfect companion for any occasion and
It pairs well with chicken, vegetables and sea foods.
RICO SAUVIGNON BLANCE
This wine is nectar from the gods crisp & dry with hints of asparagus.
Best served at 12-14 C. pair with south Indian spicy dishes.

RICO RED WINE
It is Best Red wine made exclusive for the Indian wine
Lovers with Indian grape grown in soil of Krishna valley.
It is a Sweet wine which serves slightly chilled open,
And allow to breath for 15-20min before serving.
RICO WHITE WINE
A beauty medium bodied complex wine with intense colour.
It is enlivened by refreshing mouth-watering acidity.
It is Sweet wine. It is perfect companion for any occasion
And it pairs well with chicken,
Vegetables and sea foods

SWOT ANALYSIS
A scan of the internal and external environment is an important part of the
strategic planning process. Environment factors internal to the firm usually can be
classified as strength or weakness and that external to the firm can be classified as
opportunities or the threats such an analysis of the strategic environment is referred to
as SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm’s resources
and capabilities to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection. The below mentioned points on
SWOT analysis fits in to the organization scan.
Strength
1. Transport department is self-owned by the organization.
2. The machinery, equipment’s, technology used in organization is more advanced
comparing to competitors.
3. The organization owns 4acres of land and building.
4. The organization has its own laboratory for wine testing.
Weakness
1. Lack of co-ordination between departments and employees.
2. Lack of managerial and technical skills in several workers and employees.
Opportunities
1. Giving opportunities to skilled and unskilled Labour’s.
2. Opportunity to increase production capacity.
3. Opportunity to adopt expansion and diversification by installing new plans in
plant.
4. Opportunities to bring new technologies in the organization.
Threats
1. Basically the unit uses seasonal agro based raw material which depend on the
seasons and climatic conditions.
2. Fluctuation of raw material’s prices in the market due to the government
intervention in price fixation of raw material.
3. Labour’s problems who are seasonal Labour’s are busy at outside work like Sugar
factory.

ORGANIZATIONAL STRUCTURE
Sales and
Marketing
Staff
Sales and
Marketing
Staff
Assistant
Or Executive
Accountant &
Casher
Operations
& Admin
Wine
Production
Packing
Dispatches
VP- Marketing GM- Sales Manager-HR DGM-Finance VP- Operations Wine Master
Chairman & Managing Director

DEPARTMENT STUDY
Production Department
Production can be defined as the processes and methods employed to transform
tangible inputs (raw materials, semi-finished goods, or subassemblies) and intangible
inputs (ideas, information, knowledge) into goods or services.
The Production Process:
The below is the process of making Wine.
Raw Materials
Wine is made from grape juice. The Wine Grapes used is often considered the
most important factor in making good wine. It should be clean, clear, and free from bad-
tasting impurities such as iron. Water that contains carbonates, found in areas that are
rich in limestone, is often used in the United States, particularly in Maryland,
Pennsylvania, Indiana, and Kentucky. Scottish water is famous for being suited to making
fine wine, for reasons that are still somewhat mysterious.
1. Crushing & Preparing the grape juice :
Truckloads of grapes are shipped directly from farms to the winery for crushing,
the grape is inspected and cleaned to remove all dust and other particles.
All grapes will be dumped in the Distemper machine to extract berries & stems of
grapes which will be puncher in machine & to be pumped in pneumatic pressure
machine, pneumatic pressure machines quizzes the all berries & extract the juice form
the berries & finally extracted juice will be collected in the specific containers which is in
the pneumatic pressure.
2. Fermenting
The extracted juice will be transferred to a fermentation vessel. These vessels
may be made of wood or stainless steel. Yeast is added to begin fermentation, in which
the single-celled yeast organisms convert the sugars into alcohol. The yeast may be
added in the form of new, never-used yeast cells or in the form of a portion of a
previous batch of fermentation (the sour mash process.) The sour mash method is more
often used because it is effective at room temperature and its low pH (high acidity)
promotes yeast growth and inhibits the growth of bacteria. The sweet mash method is

more difficult to control, and it must be used at temperatures above 80°F (27°C) to
speed up the fermentation and to avoid bacterial contamination. This fermentation
process needs to complete min 35-40 days, after these days, the end product of
fermentation is a liquid containing about 12-15% alcohol known as fermented juice or
wine.
3. Cold Stabilization
Cold Stabilization is a process used in winemaking to reduce tartrate crystals in
wine. These tartrate crystals look like grains of clear sand, and are also known as "wine
crystals" or "wine diamonds". They are formed by the union of tartaric acid and
potassium, and may appear to be sediment in the wine, though they are not. During the
cold stabilizing process after fermentation, the temperature of the wine is dropped to
close to freezing for 1–2 weeks. This will cause the crystals to separate from the wine
and stick to the sides of the holding vessel. When the wine is drained from the vessels,
the tartrates are left behind. They may also form in wine bottles that have been stored
under very cold conditions.
4. Filtration
Filtration in winemaking is used to accomplish two objectives, clarification and
microbial stabilization. In clarification, large particles that affect the visual appearance of
the wine are removed. In microbial stabilization, organisms that affect the stability of
the wine are removed therefore reducing the likelihood of re-fermentation or spoilage.
The process of clarification is concerned with the removal of particles; those
larger than 5–10 micrometers for coarse polishing, particles larger than 1–4 micrometers
for clarifying or polishing. Microbial stabilization requires a filtration of at least 0.65
micrometers. However, filtration at this level may lighten a wine's color and body.
Microbial stabilization does not imply sterility. It simply means that a significant amount
of yeast and bacteria have been removed.
Clarification of the wine can take place naturally by putting the wine into
refrigeration at 35°F (2°C). The wine takes about a month to settle and it is clear. No
chemicals are needed.
5. Aging
Water is added to the high wine to reduce its alcohol content to about 50% or
60% for are aged in warmer, drier conditions so they lose water and become more
alcoholic. Wine is aged in wooden barrels, usually made from charred white oak. White
oak is used because it is one of the few woods that can hold a liquid without leaking but
which also allows the water in the wine to move back and forth within the pores of the
wood, which helps to add flavor. In most other countries it is common to reuse old

barrels. New barrels add more flavor than used barrels, resulting in differences in the
taste of American and foreign wines.
The aging process is a complex one, still not fully understood, but at least three factors
are involved. First, the original mixture of water, alcohol, and congeners react with each
other over time. Second, these ingredients react with oxygen in the outside air in
oxidation reactions. Third, the water absorbs substances from the wood as it moves
within it. (Charring the wood makes these substances more soluble in water.) All these
factors change the flavor of the wine.
6. Bottling
Glass is always used to store mature wine because it does not react with it to
change the flavor. Modern distilleries use automated machinery to produce as many as
400 bottles of wine per minute. The glass bottles move down a conveyor belt as they are
cleaned, filled, capped, sealed, labeled, and placed in cardboard boxes. The wine is
ready to be shipped to liquor stores, bars, and restaurants.
FLOW CHART
Crushing
Fermentation
Cold Stabilization
Filtration
Aging
Botting/Packing

Marketing and Sales Department
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large. His scope of a business' marketing management
depends on the size of the business and the industry in which the business operates.
Effective marketing management will use a company's resources to increase its customer
base, improve customer opinions of the company's products and services, and increase the
company's perceived value.
The unit has its own marketing department with the below hierarchy.
Structure:
The above structure is a common structure of Karnataka as the hierarchy steps
down to the middle level it is spread into different districts and regions. The department
takes care of the sales and marketing activities for entire Karnataka.
Functions
1. To aim at zero customer complaint.
2. Visiting Bar& Tavern, Giving sample to them.
3. Scheme for Distributors, 10-15% reward on total amount purchase.
Marketing Department Sales
Marketing Vice President
Promotion Manager
Sales Executives
Sales Department
GM Sales (Karnataka)
Area Sales Manager
Asst. Sales Manager
Sales Executive
Marketing and Sales
Department

4. Participation in KWB (Karnataka Wine Board) Festival & horticulture Events
which will be organized by govt.
5. District wise Events, Festival etc.
Transportation Department
Supply chain management (SCM) is the oversight of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain management involves coordinating and integrating
these flows both within and among companies. It is said that the ultimate goal of any
effective supply chain management system is to reduce inventory (with the assumption
that products are available when needed). As a solution for successful supply chain
management, sophisticated software systems with Web interfaces are competing with
Web-based application service providers (ASP) who promise to provide part or all of the
SCM service for companies who rent their service.
All the alcoholic manufactures in Karnataka must and should sell their products
through KSBCL only. As earlier they had authority to sell directly to retailers but since
from S M Krishna Govt. KSBCL (Karnataka State Beverages Corporation Limited) came
into effect and the process of selling the alcoholic beverages through KSBCL was in
place.
KSBCLRetailers
Manufacturer Rico wineries
Transport

Human Resource Department
Human Resource Management (HRM) is the function within an organization that
focuses on recruitment of, management of, and providing direction for the people who
work in the organization. Human Resource Management can also be performed by line
managers.
As the definition says the HRM is all about managing the humans in an
organization. As all the company’s has this management system as this is the core
management system where in each company relies upon. It is the Humans resource
which takes care of the company’s growth.
Main Features:
1. It is concerned with employees both as individual and as group in attaining
goals.
2. It is concerned with the development of human resource i.e. knowledge,
capability, skills, potentialities and attaining and achieving employees goals.
3. HRM covers all levels and categories of employees. It covers both organized
and unorganized employees.
4. It applies to the employees in all types of organization in the world. Thus it is
common in all types of organization.
5. HRM is continuous and never ending process.
HR Executive: The HR Exe 1 takes care of the recruitment procedure for whole Karnataka
and HR 2 takes care of employee’s salary, wages and incentive schemes.
Functions
1. Employment Opportunities – Both skilled and unskilled Labour’s are taken on job
based on the job designation of the unit’s requirements based on its different
departments like Transport, Marketing & Sales department.
2. Interviews – Personal interview method of selection is done by the Human
Resource Department for selection of employers working under the Finance
Department, Production Department and also Sales as per qualification required.
3. Attendance – The unit has got up to 90 Employees (include skilled and unskilled
Labour’s), the attendance of the employees is maintained through books.
4. Salary – Fixed salary for the employers of finance accountants, marketing
executives and employee, wages are paid to the Labour’s on daily basis.
5. Drinking Water – The organization also makes a provision for having drinking
water in industry, sufficient supply of cool and filter drinking water to the
workers.
6. Free supply of Tea – The workers who are working in organization provided Tea
at free of cost while they are on duty.

Rico Winery & Anand Rathi - My project 2013-16

Rico Winery & Anand Rathi - My project 2013-16

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