Agrozan Agro Processing Company In Uae Commerce Essay

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Today, changes happens everywhere around us. The customers tastes and their expectations about price and quality and service are changing very fastly. Therefore to adjust with these changes the companies have to do research continuously. They have to make their product better than what they have made in the past. This will go to new changes in the management of available resources.

The Company I select for organization study is Agrozan Agro Processing Company DMCC. It is located at Dubai, UAE. Agrozan is a famous agri-business company involved in origination, processing and trading of agricultural products like food Grains, and Oilseeds and Edible Oils, They also process animal Feed They are also involved in the processing of Meals, Pulses, Rice & Sugar, Spices and Edible Nuts.

The company is located in Dubai, UAE and has offices operating worldwide . It has offices operating in locations like Turkey, Russia, Ukrain, Russia, Ethiopia, Nigeria, , Djibouti, India, Pakistan,a and Vietnam. With the powerful presence and vast experience attained in specific origins and markets, Agrozan is committed to be a the supreme and respected player in its field making value additions and cost effective solutions to its suppliers and clients.

Agrozan Commodities DMCC is incorporated under Dubai Multi Commodities Center Authority, promoted by the Government of Dubai, to create a global center of excellence in the business of commodities.

The study was aimed at getting a clear picture of the organization structure to learn how the authority flows down the levels' of management. Apart from these, present operations of the company, familiarizing the duties and functions of various departments and how they interact with each other were the objectives of the study.

NATURE OF BUSINESS

The role of agro-industry as a sector of the economy has multiple facets and changes in the course of development. In the early stages of growth, industrial processing of agricultural products tends to be limited to a few export crops, while the majority of agricultural products are consumed after minimal forms of processing that are performed entirely within the agricultural sector. Upstream processing industries prevail in their more primitive form, such as rice and flour milling, oil pressing and fish canning. An example of this stage would also be the plantation economy, where agro-industry and primary agriculture appear as a vertically integrated activity, with upstream processing taking over the agricultural base through a production system that is often founded on forms of disfranchisement of labourers and small cultivators.

Other cases of apparently more diversified agro-industrial activities, based on fruits and vegetables or livestock products, may be equally primitive in their organization, the low degree of value added produced and the lack of linkages both with the chemical and mechanical industries and with marketing and financial services. Such is the case for Egypt where, in spite of the growth of vegetable and fruit production and the related transformation industry, primary agriculture still accounts for almost 90 percent of the intermediate goods purchases of the industry, while a longer chain of links has developed only for livestock-related products. Similarly, a large share of agricultural raw products in total intermediate purchases characterizes most agro-industrial production of tropical beverages and other products originating from plantation crops, as well as vegetables, fruits, tobacco and livestock in the first stage of domestic industrial development.

Even in the case of limited backward linkages outside agriculture, food processing in the early stages of development can be an important direct complement to agriculture as a source of employment for seasonal labour. It requires very little investment and provides ample opportunities for expanding value added by using underemployed resources as well as for improving incomes and nutrition. Cottage industries of various forms are found in almost all areas where agriculture is sufficiently diversified, and there is scope for extending the range and timing of production both for dietary reasons and as a hedge against uncertainty. The off-farm employment opportunities provided by food processing may thus represent the first instrument of time-smoothing in the labour market and, as such, is an important factor of capital accumulation in rural areas.

Morocco provides an example of a more advanced stage of development of agro-industry, characterized by some more sophisticated downstream industrial activities, but where off-farm employment nevertheless remains the industry's main engine of growth. In this country, the presence of a well-developed food preserve industry for tomato sauce, fruit juices and other canned fruit ensures stronger links with sectors other than agriculture, both as providers of inputs (chemicals, glass, aluminium and paper) and as dependent sectors of further processing (marketing services). The food industry in Morocco is estimated to purchase only about 70 percent of its raw materials from agriculture, while the final product sold to the consumer and exported in increasing quantities contains more than 45 percent of non-agricultural products.

A further stage of development of agro-industry as a producer of food and beverages can be observed in a number of middle-income countries, such as Turkey, Argentina and Chile. This stage is characterized by full development of the forward linkage chain, with several marketing and other services incorporated in the final product, and product innovation prevailing over process innovation to provide a competitive advantage and sources of growth to the firms in the market. The linkage with the marketing chain tends to be well established, with both organizational and financial links between the producers and the retail outlets. The pace at which new products are introduced is extremely high, and this testifies to the importance of product innovation in this phase of the industry cycle.

Finally, for high-income areas such as the EU or the United States, the mature stage of the food industry still appears to be very dynamic. While the backward and forward links do not go much beyond what has already been achieved by third-stage firms in middle-income countries, a separate series of linkages develops through the production of specialized machinery and process innovation. Because of their size, market leadership and degree of internationalization, the food-producing companies located in the high-income countries are often instrumental in setting the base for a whole technology of processed food production. The areas involved range from the planning and quality control of agricultural products and other raw materials, to the design and manufacture of machinery, specification and monitoring of the production cycle and the provision of specialized financial and other services.

Thus, the multiplicative power of the agroprocessing industry throughout the economy through the linkage effects appears to be an important factor of growth both for developing and developed countries. An additional reason why agro-industries are especially effective in activating demand from the upstream and downstream sectors lies in the position of food in the consumption chain. Thus, even at a relatively low level of sophistication with limited backward and forward linkages, agro-industries may still be particularly effective in channelling increased global demand into increased output. This is so because, at the earlier development stages, a high share of private expenditure is directed towards cereals and other staples and, later on, as development progresses, towards fruits and vegetables and other food products whose income elasticity is relatively higher.3 At later stages of development, it is the growing integration of the producing sectors that mainly ensures the capacity of food production to activate the rest of the economy, although the contribution of consumption to the industry multiplier remains sustained through diversification and growth of products with higher income elasticities.

An important feature of agroprocessing industries is that they are a major source of employment and income, thus providing access to food and other necessities to large groups of population. They are, therefore, essential elements in the attainment of food security goals.

Products

Grains

Pulses & Rice

Oil Seeds & Oils

Animal Feed

Spices, Dried Fruits & Edible Nuts

MAJOR DEPARTMENTS

At Agrozan the following are the major departments

Production Department

Finance Department

HR & Administration

Marketing Department

3.1 PRODUCTION DEPARTMENT

Production department is an important department as a company is concerned. The production department is the ultimate authority regarding the decisions of what, how when and where about the manufacturing of the product.

The following is the structure of the production department,

Managing Director

Production Mgr

Electrical Foreman

Shift in charge

Production Eng

UME

Operator

Fork lift operator

Electrician

Production manager is the supreme authority in this department. The production Engineer and utilities and maintenance Engineers come under him. He is the overall in ­charge of all production engineers is responsible for the shift allocation of the employees.

Production department collect quality goods raw materials, at reasonable price and bulk quantity. Fruits are seasonal resource (e) so they collect the raw materials in its season and process it and convent it into juice concentrates and transfer it in to store for further production.

3.2 FINANCE DEPARTMENT

Finance department play an important role in the effective functioning of the department. All the strategic and developmental decisions are depend upon the performance and efficiency of the finance department

Department chart

Managing Director

Finance Manager

Sr. Accountant

Accounts Asst.

Sr. System Asst.

Admn. Officer

Finance manager is the head of finance department. He has equal rights and responsibilities as compared to the managing directors of the company in general matters. The finance manager has senior accountant and system offices under him to assist him in daily activities.

3.3 HR & ADMINISTRATION

Functions

Employee welfare

Public relations

Performance appraisal

Compensation

Recruitment

Industrial relation

This section can be regarded as the system of rules regulating employment and ways people behave in the organization. Whenever a conflict takes place it is the duty of this department to look into the matters and take corrective action. The administrative officer acts as a liaison with legal advisors. The company has been enjoying peaceful industrial atmosphere for as long time. The company has the co- operations of employees in almost all the activities.

Another important function of HR & administration department is to deals with recruitment, selection, induction, orientation, promotion and career planning of the employees of the organization. Performance appraisal is one of the most important duties of this section.

Agrozan has given a high priority to human resource development through training and organizational development activities. The company look after training needs of an employee right from he joins as a fresh recruitment through his growth in company hierarchy.

3.4 MARKETING DEPARTMENT

"Consumption is the sole end and purpose of all production" (Adam smith) As such, consumers are the targets of very activities performed by business people. The. satisfaction of the consumer is the main perhaps the most sensible objective of the business firm.

Marketing is a human activity which satisfies the needs and wants of the customers through an exchange processes. Marketing is a social process by which individuals and groups obtain what they need and want through creating and freely exchanging products and services of value with others. .

STRUCTURE OF MARKETING DEPARTMENT

Managing Director

Marketing Manager

Area Sales Exe

Asst. Sales Exe

Marketing manager is the head of marketing department. He co ordinates and control all the functions of marketing with the help of market researchers. These are two marketing consultants working under the MM and assisting him

DEPARTMENT OF OPERATIONS

An operations department typically attends to those administrative, logistical, and other duties necessary for an organization's day-to-day functioning. Depending on the nature of the organization, an operations department, sometimes called a back office, may be responsible for a diverse range of responsibilities. Operations departments exist in businesses and other organizations in every segment of the economy, including - but not limited to - such diverse segments as the financial services industry, including banks and brokerages, as well as academia, manufacturing, non-profit organizations, and the military.

Managing Director4.1 Department Structure

Quality Assurance Mgr

QA Officer

Lab Operator

QA Assistant

4.2 QUALITY TESTS & LOGISTICS

`Every product in Agrozan goes through stringent quality control measures before it appears in its fiscal form before the customer. From the selection of the best fruit to the aseptic' packaging, there are no compromises.

Laboratory tests are conducted periodically in order to test the samples like Boiler feed water, process water, pulp, juice, packing materials etc. These tests are conducted during different stages of operations to ensure the quality of finished products. Twelve [mished products are taken every 30 minutes of production and the following tests are conducted:

Product Quality Tests

Physical Tests

-

a. Taste

b. Appearance of the pack

b. Labeling details

Chemical Tests

-

a. Acidity

b. acid ratio

c. Infrared moisture balance

Micro biological tests

-

a. Total plot count (TPC)

b. Yeast and mmlld.

After the quality check, the final products are distributed to the dealers through proper transport channels, that is done by the logistics department of agrozon. The final products readily packed and sealed to go through appropriate mode of transport it may be transported through land, through air or by sea.

PROBLEMS FACED IN OPERATIONS

Major portion of production is done seasonally. .

Measures taken for marketing is not so effective in UAE market.

Huge employee turnover in operations department.

Delivery is not happening on time.

Machineries create pollution of air.

Lack of facilities to tap the market

Low orientation programs for farmers

Lacking proper market research

Only seasonal employment opportunities, provided to temporary workers.

SOLUTIONS TO OVERCOME PROBLEMS

Through the study I had done, I can suggest some solutions for the development of the company

Give more importance to advertisement in electronic media, especially during prime time, for attaining good market share.

Emphasize permanent employment to reduce the rate of employee turnover.

Strengthen the distribution network by owning transporting vehicles rather than taking them on rent so that it will increase the assets of the company and reduce the cost of company

Have a good relation With the workers and form a democratic atmosphere in the company

Maintain a good grievance redresal cell for fast solution of workers problems .

Strengthen the distribution channel through an effective supply chain management .

Try to get as a model for quality .

To take proactive measures to control the pollution.

Attract more farmers and have a well coaching to the farmers for better production

CONCLUSION

"Agrozan" Agro Processing Company DMCC is carrying out its business by a team of experts agro products Developments and Exports has grown and developed in a short time and in a very efficient and effective way. It can be seen from the efficiency of the imported best quality machineries and its qualified employees. The company gives utmost importance to the development and expansion of its organization.

Through this descriptive study of "Agrozan" Agro Processing Company, I got a very valuable and information that will help me in the studies .From the study I came to know the company has a good organization structure and an effective management system. Also the company has a good position in the soft drink industry.

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