Establishment – 78 cents Land was purchased at Kallarpe on January 2011, Building Construction started in February, Machinery Erection started in June, Power connection was obtained in September, Trial production was done in October and commercial production started in December 2011. Packing machines got shifted in January from Parladka unit to Kallarpe unit and packing started in January 2012. Coconut Development Board again gave financial assistance under Technology Mission on Coconut for setting up the new oil mill. Term Loan and Working Capital was availed from Karnataka Bank.

Production Streamlining – All the installed machines were fine tuned to make them work as expected, efficiently and together. Operators were trained to increase throughput, minimise breakdown and maintenance. Quality, Hygiene and cleanliness was tightened. Experiments were made in manufacturing process and the right process was adapted. Copra procurement was fine tuned to purchase only copra made from fresh coconut of good quality from selected vendors with favourable terms.

ERP Implementation – Company was into losses in the first 2 years. The extent and reasons for losses were not exactly known as there was no real time accounting and inventory tracking system. Then it was thought, the day we get the know the real picture of business is the day the company will get into green. So an ERP system was developed with a server and thin clients for computing, connected over a LAN, Tally 9 ERP as software. Heads of accounts, ledgers, stock items were created and transactions were accounted real time to give the management a clear picture of business. Management could analyse the transactions and classify them into profit making and loss making and tune the business accordingly.

Induction of Professionals – Professionals in each functional area like Production, Stores, Purchase, Accounting, Sales and Quality were inducted and Promoters delegated their responsibilities to them. Employees benefits like ESI, PF and festival holidays are given. Annual festivals like Ayudha Pooja are celebrated, monsoon trips and skills training are conducted. Uniforms are given. Annual performance reviews are done and good performers are rewarded. These activities have helped the company build a strong employer brand where best of people are attracted and retained.

Van Sales – Sales Van was purchased for the purpose of line sale/distribution of Cocoguru products in January 2012. One route starting from Puttur is covered on each of the 6 days of the week. More vehicles were purchased and hired, more routes were added and sales team grew from 2 to 15, no of vehicles increased from 1 to 5. Other edible oils like Palmolein, Sunflower and Lamp Oils were traded to cover our supply system to all shops over Dakshina Kannada.

Distribution Network – The company used to supply its products to retailers directly through its Sales Van. It is not a scalable model as more areas cannot be covered. Also it was a distraction for the company from its core activity of manufacturing and marketing. So, distributors were appointed at those areas, they do it as a business not employment. When the no of distributors grew and distributor transactions were getting complicated, super stockists were appointed at Puttur and Mangaluru. Super stockists hold stock and supply to distributors. Scope of company in the distribution system was greatly simplified and gave the company the bandwidth needed for more important areas.

Brand Building – Coconut Oil was initially priced in line with its major competitors to gain traders acceptance. But in order to grow the product as a brand, quality of product was increased, price was increased, advertising was done to grow brand awareness. With strong consumer preference for the brand, sales improved, premium price could be maintained and improved.