...Currently Mr. Vijay K. Chauhan is the key person contributing towards the companies’ success. PRODUCTS:- CHOCOLATE CONFECTIONERY OTHER PREPARED FOODS ( BY ROASTING ) BISCUITS ACTIVE YEASTS Exporting countries:- BAHRAIN CAMEROON CANADA KOREA DEM. REP. MALTA NEPAL NEW ZEALAND SAUDI ARABIA SIERRA LEONE SOUTH AFRICA U.A.E U.S.A. YAMAN HISTORY OF PARLE-G A long time ago, when the British ruled in India, a small factory was set up in the suburbs of Mumbai City, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called PARLE PRODUCT, survived and succeeded by adhering to his quality and improvising from time to time. A decade later, in 1939, Parle Product began manufacturing biscuits, in addition to sweets and toffees having already established a reputation for quality, the Parle Brand name grew in strength with this diversification. PARLE GLUCOSE and PARLE MONACO were the first brand of biscuit to be introduced which later went on to become leading name for great test and quality. That time only one building was having in Vile-Parle where they were making production and any other process. Then gradually that company expanded in many buildings and today that company located in 14 Akers area. That time they were transporting their products...
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...Currently Mr. Vijay K. Chauhan is the key person contributing towards the companies’ success. PRODUCTS:- CHOCOLATE CONFECTIONERY OTHER PREPARED FOODS ( BY ROASTING ) BISCUITS ACTIVE YEASTS Exporting countries:- BAHRAIN CAMEROON CANADA KOREA DEM. REP. MALTA NEPAL NEW ZEALAND SAUDI ARABIA SIERRA LEONE SOUTH AFRICA U.A.E U.S.A. YAMAN HISTORY OF PARLE-G A long time ago, when the British ruled in India, a small factory was set up in the suburbs of Mumbai City, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called PARLE PRODUCT, survived and succeeded by adhering to his quality and improvising from time to time. A decade later, in 1939, Parle Product began manufacturing biscuits, in addition to sweets and toffees having already established a reputation for quality, the Parle Brand name grew in strength with this diversification. PARLE GLUCOSE and PARLE MONACO were the first brand of biscuit to be introduced which later went on to become leading name for great test and quality. That time only one building was having in Vile-Parle where they were making production and any other process. Then gradually that company expanded in many buildings and today that company located in 14 Akers area. That time they were transporting their products...
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...is with the reference to the situational analysis done by us on the Kanpur Confectionaries Private Limited (KCPL) manufacturing units for doing contract with A-One Confectioneries Private Limited (APL). I hope you find this report satisfactory. Sincerely, Bhumil Patel Patel Consultant Enclosure:- KCPL.pdf Executive Summary The case is about the Kanpur Confectionaries Private Limited (KCPL) a family business located in Kanpur, UP and started by Mohan Kumar Gupta in 1945, now the company is looked after three of his son. The KCPL is Glucose biscuit manufacturing company and is known for its good quality, crispness and affordable price. In 1973-74, Glucose biscuit were the growing segment in the biscuit industry. The KCPL reached second position in the market with a monthly sale of 110 tonnes. In 1980-81, KCPL doubled its capacity to 240 tonnes per month from 120 tonnes per month. The turnover was Rs. 2 crores in 1979-80 and Rs. 3 crores in 1983-84. But its sales declined between 1983-84 and 1986-87, the capacity was rendered surplus and incurred loss. In May 1986, KCPL signed agreement to use its surplus capacity of 50 tonnes per month, with promise off take of 100 to 125 tonnes in future. In 1987, KCPL received proposal from APL, the national leader in the biscuit industry, for the supply of 70 tonnes per month. The APL will also inspect the production process of the KCPL and recommend changes in...
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...Outline of the Report Kanpur Confectionaries Private Limited (KCPL) is a family business that is into glucose biscuit production. It was setup by Mohan Kumar Gupta as a sugar candy business. But he soon diversified it into biscuit production unit because of market related issues and low technological requirement. Mr. Gupta had always aspired to make ‘MKG’ a leading brand. He put in a lot of efforts and that showed off. The company performed well in the earlier stages gaining a good amount of market share and profit (and hence revenues too). But due to ever increasing competition in the market, the performance of KCPL gradually started to deteriorate. Eventually, a company that gained 20 lakhs a year started losing more than 15 lakhs a year. Also, they shut off the sugar candy business. Seeing this, two companies proposed offers to KCPL. Problem Statement: What shall KCPL do in order to regain the brand (MKG) popularity and profitability in the biscuits market and fully utilize its production capacity keeping its integrity intact? The options include the following: 1) Accept A-One Private Limited’s (APL) proposal in addition to continuing its own production of 120 tons and stop manufacturing for Pearson. 2) Accept APL’s proposal and continue with Pearson’s production in addition to continuing its own production of 120 tons. 3) Continue with Pearson’s production and its own 120 tons and concentrate on developing the brand image. Evaluation...
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...sincerely, Ashutosh Shukla Chief Executive Officer XYZ Consultants Connaught Place New Delhi-110001 Xyz_consultants_in@gmail.com 2 Outline of report The constituents and brief summary Situational Analysis: Foundation of KPCL, critical analysis of KPCL as an entity, what led to the present situation, competitors of KPCL and its standing amongst them. Problem Definition: For which entity the biscuits are to be manufactured keeping in mind the profits, using the surplus capacity and augmenting the value of MKG brand. Options: 1) Manufacture for KPCL and Pearson 2) Manufacture for KPCL and APL 3) Manufacture for KPCL, Pearson and APL 4) Manufacture only for KPCL Criteria for evaluation: Increasing profits, long term consequences should be favorable, surplus capacity should be put to use, MKG should be strengthened as a brand and there should be independent control over manufacturing. Evalaution: After evaluating the options the most profitable option comes out to be manufacturing for KPCL, Pearson and APL which gives a profit of 22.16%, marketing strategies like endorsing Good Health Biscuits as “high fibre” will give...
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...response to the proposal of A-One Confectioneries Private Limited (APL) that KCPL might consider becoming its contract manufacturer. APL was a leading national player in the confectionery industry. It had desired to expand its supply to the market by subcontracting orders to other manufacturers. However, it wanted to retain full control over the quality and production processes of biscuits produced for them. It had promised the sub-contractors that it would compensate them adequately in terms of volume of business and conversion charges. To KCPL the advantages were in getting assured return on its investment and access to APL's manufacturing expertise but the disadvantages were in the possible loss of independence in decision making, dilution of ‘MKG, ’company’s own brand, , and family prestige. The Company KCPL was started in 1945 by Mohan Kumar Gupta, then 28, in Jaipur Rajasthan State, to sell sugar candies under the brand `MKG’. Earlier, he was a worker in a candy unit in Jaipur. He started his own business with the dealership of candies produced by others. With the experience gained, he set up a production unit in Jaipur in 1946. Thirty units were set up in the unorganized sector in Rajasthan to sell a variety of candies between 1946 and 1950. As competition increased the net profit margins came down. KCPL could not compete on costs as its costs were higher than those of the other manufacturers. It could not charge a higher price as its candies were not considered...
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...been analyzed. The report contains the Situation analysis, problem identified and options available. The options available have been evaluated. Recommendation has been made considering the critical criteria of evaluation. An action plan in regard to the recommended option has also been enclosed. Situation Analysis Since the biscuit industry provides an easy setup and lucrative net profit margin, there had been a proliferation of both organized and unorganized units in this sector. With increased competition from both the sectors, KCPL has stuck in the middle. It cannot increase the price to cater the rising cost of labor and capital; nor does it have the premier image to get a higher price. For last three years, sales had been continuously declining and it had not acted diligently to identify and overcome the issue. To utilize its surplus capacity, the company contracted with PHDL (Pearson). The market response to Good Health Biscuits is not encouraging. Customers perceive A-One biscuit as health and energy providing biscuits, which is available at two-third price of Health biscuits. APL has offered KCPL to produce for them as a CMU (Contract manufacturing Unit). The offer has come with an initial order of 70 tonnes accompanied with a set of binding conditions. The offer has both advantages and disadvantages. The advantage is in terms of avoiding marketing, brand building,...
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...decided to shift the production to another state and reduce costs, in 1954 he bought one and a half acres plot in Kanpur, Uttar Pradesh and set up a new unit, he advertised MKG in the leading newspapers and on hoardings at cross roads. By the end of sixties he was the leader in candies in the northern region. He decided to diversify into making glucose biscuits and selling under MKG brand. The business was profitable but there was a scarcity of maida, sugar and vanaspathi. In 1973-74 KCPL reached number two position in the market, Prince Biscuits was the leader and International Biscuits Ltd. Held the third position. Whereas APL was the overall national leader. In 1980-81 KCPL’s turnover was Rs.2 crores, with a net profit of Rs.20 lakhs, it doubled its capacity from 120 tonnes to 240 tonnes per month. The problem with KCPLwas absenteeism of workers. MKG biscuits were known for their quality, crispness and affordable price. The consumers were middle class families. Competition for KCPL increased with the new units of unorganised sector.Between 1983-84 and 1986-87 its sales declined and it incurred loss (See Exhibit 1). In 1985 Pearson Health Drinks Limited decided to diversify into health biscuits, a consultant to KCPL recommended KCPL’s case to Pearson. Pearson agreed a load of 100 to 125 tonnes per month and a conversion rate of Rs.3 per kilogram after reimbursing fully the cost of materials. Good Health biscuit was not very encouraging, the price of A-One biscuits was two-third...
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...Analysis OF SUPPLY CHAIN MANAGEMENT AT BRITANNIA INDUSTRIES Acknowledgement It would be of great pleasure for me to take the opportunity of thanking nearly everybody who had been of great help in the completion of my dissertation. My sincere gratitude goes to MR.KAPIL GARG (DEPPT. OF MANAGEMENT) and MR.MANORANJAN (DEAN). My institute guide, without whose help this dissertation would have seemed impossible. I owe immensely for the minute help that was forwarded to me by friends in my organization. Both of the above mentioned persons supported me incredibly and guided me with suggestions and probation’s for the betterment of my accomplished work. It has been of great learning to be on the job and doing the dissertation simultaneously, which enriched my knowledge and developed my outlook. I am looking forward to continued support from my friends and colleagues in future as well. Only with their encouragement and coorporation. SARITA KUMARI Contents Chapter 1: Introduction -Need of the study - Background Chapter 2: Research methodology -Objectives of the study -Research Methodology (sample size, instrument used, Methods of data collection) Chapter 3: Descriptive work of subtopic on study Chapter 4: Data analysis & Interpretation ...
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...leading national player in the confectionery industry. It had desired to expand its supply to the market by subcontracting orders to other manufacturers. It had also desired to retain full control over the quality and production processes. It had promised the sub-contractors to compensate them adequately in terms of volume of business and conversion charges. To KCPL the advantages were in getting assured return on its investment and access to ACPL’s manufacturing expertise but the disadvantages were in the possible loss of independence in decision-making, dilution of company’s own brand, MKG, and family prestige. KCPL and its Background KCPL was started in 1945 by Mohan Kumar Gupta, then 28, in Jaipur, Rajasthan, to sell sugar candies under the brand ‘MKG’. Earlier he was a worker in a candy unit in Jaipur. He started his own business with the dealership of candies produced by others. With the experience gained, he set up a production unit in Jaipur in 1946. Between 1946 and 1950, 30 units were set up in the unorganized sector in Rajasthan to sell a variety of candies. As competition increased the margins came down. KCPL could not compete on costs as its costs were higher than the other manufacturers. Mohan Kumar faced a financial crisis. He decided to shift production to another state and reduce costs. In 1954, he bought one and a half acres plot in Radha Industrial Estate, Kanpur, Uttar Pradesh (UP) and set up a candy-making unit there. He became the first entrepreneur to...
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...it and provide feedback. Also, do revert back in case you have questions or clarifications. Thanking you, Yours sincerely, Dhriti Dhyani SITUATION ANALYSIS: KCPL was started in 1945 by Mohan Kumar Gupta in Jaipur to sell sugar candies under the brand name ‘MKG’. Due to increase in competition, he decided to shift his plant to Kanpur, Uttar Pradesh where he promoted ‘MKG’ as a leading brand. Alok Kumar, the eldest son of Mohan Kumar, joined KCPL in 1960. In 1970, because of the positive trends of net profit, he decided to diversify business into glucose biscuit manufacturing. It showed growing demand at more than 15% per annum resulting to 25% rise in net profit margin. He then extended his range by providing MKG’s cream, salt and Marie biscuits. In 1973-74, Prince Biscuits was leading the market with a monthly sale of 130 tonnes followed by KCPL with sales of 110 tonnes. International Biscuits with sales of 100 tonnes per month stood third in market. A-One Confectionaries Limited(ACL) was the national company, mainly leading in South India with 900 tonnes per month capacity. During 1975, the competiton from unorganized sector increased who produced busicuits under unhygienic conditions, and sold unbranded busicuits or name their product similar...
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...candies under the brand MKG.after successful start Mohan Kumar shifted production to another state UP.to build further on his success he established network in Bihar and MP.went into candy business as raw material required were the same.1973-74 2nd in northen region. Reasons for decline in business: scarcity of ingredients, absentism of workers, stringent government laws.biscuit business is all that they have. Major problem: Kcpl is in dilemma and has to decide their response to the offer of becoming a contract manufacturing unit (CMU) of APL along with pros and cons of the offer. Possible solution available: * Rebuild ‘MKG’ brand Reason: vision of Mohan kumar gupta to be a national leader Legacy that they want to give to their sons (prestige issue) They take salary dependent business About brand: Mid range player: Consumers: Middle class families, urban and semi urban areas Small and medium sized institutions (360/2400 tonnes) Strategies to rebrand: Solve HR problem (casual workers) Increase Canteen share by targeting large institutions (quality, not premium brand problems) Control loose sell of biscuits (by spreading awareness about health issues that can arise by consuming loose biscuits) Brand advetisement: Vernacular newspaper Possible Solutions to HR problems: Restructure production process by introducing new machienary less workers Quality control Production cost will reduce Probable dangers: (capital required) (skilled labour...
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...company is supposed to incur for production. Furthermore, we have classified the cost in term of manufacturing and non-manufacturing cost and then we defined the cost in relation to volume i.e. the fixed, Variable and semi-variable cost. Moreover, we define the costing system of EBM and finally a conclusion of overall report. In the very last, we give recommendation to...
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...Biscuit case 13 Biscuits Industry is the largest among all the food industries and has a turnover of around Rs.5000 crores. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stand at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production. with an annual output of 1.95 million tons, India is the third largest producer of biscuit, after the US and China. Per capita consumption of Biscuits in the country is only 1.8 kg, as compared to 2.5 kg to 5.5 kg in South eastern countries and European countries & USA respectively. The annual growth in the Biscuit Market is witnessed as below: [pic] Annual Growth % The growth has been stagnating during the last 4 years but it is expected to pickup momentum during the year 2007-08, mainly on account of exemption from Central Excise Duty on biscuits with MRP up to Rs.100/per kg, as per Union Budget for 2007-08. Indian Biscuit Manufacturers’ Association (IBMA), instrumental in obtaining the excise duty exemption, estimates annual growth of around 17% to 18% in the current year (2007-08). Growth...
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...largest biscuit manufacturer in the Northern region in 1973-74, with monthly sales of 110 tonnes under its MKG brand. In 1980-81,with a view to grow further in the region and also expand into the national market, the production capacity was doubled to 240 tonnes, but only 50% of that capacity is currently being utilized for the MKG brand. In the past 13 years, the MKG brand has grown by only 9.1%, even though the production capacity increased by 100%. In the first 10 years after the increase in production capacity, the sales turnover increased year over year, but started following a declining trend after that. In the previous year, 1986-87, the sales turnover under the MKG brand was ₨ 2.6 crores; a drop of 13.12% from 1983-84. The drop in sales can be directly attributed to two reasons: 1) Rising unorganized competition – The unorganized sector evaded excise duties and sales taxes and had no onus on quality, which helped them price their biscuits much lower than MKG. In the previous year, MKG paid taxes of Rs 4163 per tonne of biscuits sold. 2) Rising organized competition – Due to increased organized sector manufacturing units, MKG could not increase its prices to compensate for rising costs of labor and material, which led to declining margins. Apart from the above, there were various indirect reasons which resulted in MKG not being able to sustain competitive pressure: 1) Raw Material wastage – In 1986, MKG used 1100 kg of raw materials to produce 1000 kg of biscuits, whereas...
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