Presented By :

Tosif Diwan 148290592001

Imran Shaikh 148290592002

Kuldeep Thakor 148290592010

Umesh Parmar 148290592014

Vinay Sharma 148290592018

MBA SEM IV

Shivam Institute of Management

• The food processing industry in India is a

sunrise sector that has gained prominence in

recent years.

• I dia’s agricultural production base is

reasonably strong, wastage of agricultural

produce is sizeable.

• Processing of fruits and vegetables is a low

2%, around 35% in milk, 21% in meat and 6%

in poultry products.

• Fruit & Vegetable processing.

• Grain Processing.

• Processing of agricultural products, dairy products, poultry and eggs, meat and meat products.

• Industries related to oilseeds, meals, breakfast foods, biscuits, confectionery, malt extract, protein isolate, high protein food, weaning food and extruded food products

• Aerated water and soft drinks.

• Specialised packaging for food processing industries.

• A small company in 1929 to sell sweets and toffees.

• Original company split up into Parle Products, Parle Agro & Parle Bisleri

• Market Leader in Glucose Biscuits (Parle G)

• 40% share in biscuit market , 15% in confectionaries

• Parle has largest manufacturing units in India

• Ranked 7th in the as one of the most trusted brands.

• 32 products including biscuits toffee,

candies .

• 10000 workers are employed in Parle.

• 10 mother units and 65 manufacturing

units

• Brand Ambassadors(Mr. Hritik Roshan &

Mr. Amitabh Bachhan)

• It has world’s largest achi es at their

manufacturing plant.

Biscuits

• Amongst the top best brands

• Winning awards at Monde selection Since 1971

• 111 gold, 26 silver and 4 bronzes

• Parle G as the proudest product

• Gaining popularity in international market

• World’s largest selling is uit

HRITIK ROSHAN AMITABH BACCHAN

RAW MATERIAL MIXING MOULDING

BAKING COOLING PACKING

PRODUCT PRICE

PLACE PROMOTION

TARGET

MARKET

• Associated with the positive values.

• Multitude of products

• Consistency of Products

• Earned as a renowned brand

• Enjoyable by all age groups

• Market Penetration strategy with low price.

• Value for money positioning

• Appeals to all income groups

• Profit margin for distributors is 4% and for retailers is 10-12%

• Extensive distribution network

• Reach to remote rural areas

• Value for money positioning

• 1500 wholesalers and 4.25 lakh retailers

• Setting up of factories at strategic locations

• Parle Products availability

PROMOTION STRATEGY

• Advertised mainly through Press media

• Sales Promotion

• The Dadaji TV Commercial in 1989

• Using celebrities in AD to generate fantasy

• Public relations

SWOT ANALYSIS

S W O T STRENGTHS WEAKNESS OPPORTUNITIES THREATS

STRENGHTS

• Low Price

• Sizable market share

• Variety of products

• Deep & Effective Coverage

• Largest distribution system

• Better Understanding of consumer psyche

WEAKNESS

• Depends on Parle G

• Lacking schemes

• Replacement of Damaged stock

• Improper & irregular supply

• Packing of Biscuits

OPPORTUNITIES

• Demand for innovative packing

• Improving supply for brands

• Information through television

• Retaining loyal retailers

THREATS

• Hike in cost of production

• Co petitio fro MNC’s

• Emerging substitutes like toast, wafers.

• Entry of various new entrants, ITC etc

35%

31%

15%

9% 10%

Market Share

Parle

Britania

Priya Gold

Sun Feast

Others

• Food industry is an emerging sector for the Armenian

economy, accounting for the country’s GDP for 18%.

• Usually, Armenia was exporter of various types of products

to former USSR, including fruits, vegetables, canned

vegetables and foods.

Major players in food industry of Armenia :-

1) Artashat cannery (market share 29%)

2) Euroterm (market share 27%)

3) Ararat Food Factory( market share 14%)

4) Nicola international (market share 11%)

5) Sis Natural (market share 11%)

Food industry in Armenia

36%

14% 4%

24%

7%

3% 2%

2% 1%

8%

Breakdown of processing industry Food

Beverage

Tobacco

Basic metals

Other non metalic mineral

products

Rubber and plastic products

Fabricated metal products

Paper products and printing

Chemicals

• "Grand Candy" company is the largest domestic production

facility in Armenia.

• The company, formerly known as Yerevan Confectionery

Factory was founded early in 2000.

• For the next 17 years the two factories operated separately

until they merged in 1951.

• "Grand Candy" company guided by the motto: Our quality is

our pride".

• In 2001 "Grand Candy" began ice-cream production.

• "Grand Candy" produces more than 400 different

products in Armenia.

• Gra d Ca dy is the largest co pa y i the Ar e ia food industry.

• "Grand Candy" products is the high quality and the use of

natural ingredients, such as cocoa and milk products,

nuts and fillings made from fresh fruits.

• "Grand Candy" set a new Guinness World Record with

the "Largest chocolate bar".

PRODUCT PRICE

PLACE PROMOTION

TARGET

MARKET

• Grand candy produce more

than 400 products.

• Grand candy offers such

product the wide variety.

• To maintain the high quality

of its production.

• "Grand Candy" never uses

cheap and low quality

ingredients.

• Value that customer pays to buy

the product with the expectation

they have about what the

production is worth to them.

• Every customer segment has

different price expectation from

the product.

• Identifying right price level for each

segment, and then progressively

moving through them.

• The extensile distribution at work

build over the years is a major

strength for grand candy products.

• Grand candy products are available

to consumer in the most places and

in the every cities with the

population

• Company operates more than 26

brand stores at Armenia, 18 of

which including 7 stores cafes are

located in Yerevan.

• Grand Candy website too is very

innovative and shows nothing but

asks the visitor to take a good

product.

• The major push expected of a

FMCG company is in sales

promotions at the ground level.

• Nestle is a brand which has strong

products as well as strong

marketing, and hence the brand has

a very high brand recall value.

S W O T STRENGTHS WEAKNESS OPPORTUNITIES THREATS

• Very high quality of the raw material

tasty, sweet, with appropriate index

of sugar sourness.

• Environment friendly production.

• Though most often not certified, but

near-organic production.

• Centuries old traditional production

for Armenia.

• Does not require enormous capital

investments.

• High cost of the raw material.

• The investment in to the production are returned only

in 6 months period.

• Lack of laboratories and quality control mechanisms.

• Lack of export- oriented proper packaging.

• Non organized production where the necessary fresh

products.

• More and more orchards of fruits

sorts appropriate for drying are

founded.

• Government support to the sector

including via supporting the exports

of the food and interference to the

food from other country

• Increasing loyalty of local customer

toward the Armenian Production

• Creation of a single regulating and

exporting body.

• High probability of drought and

unfavourable climatic factor,

limited infrastructure to fight

against them.

• The dependence of raw material

prices on the climate condition.

• Fluctuation of the foreign currency

exchange rates.

• Increasing price of commodities

will result in further increase in the

price of the end product.

Armenia India

High quality of raw material Infrastructure development

Limit use of chemical Growing number fast food chain

Lack of marketing strategy Divergent food habit

Vast domestic market Heavily bureaucratic

High demand Armenian food increasing income level

Preferences of local customer Large corporation and material base `

Lack of adequate quality control Inefficient supply chain

High probability drought , climate

factor

Religious number of different food

High competition Affordability and cultural

Company's Policy

"Baked with love" is the Company's commitment to achieve our customers'

satisfaction.

Our Vision

Concentrate on the consumers taste and preferences, the parle brand has

grown from strength ever since its inception.

Our Mission

Hindustan ki takat

For over 70 years. Parle G has been part of the lives of every Indian. From the

snow capped mountains in the north to the sultry town in the south, from

frenetic cities to laid back villages, Parle G has nourished, strengthened and

delight millions.

•Determine Type

•Seek Financing

•Obtain Information

•Evaluate Possibilities

•Examine Franchise Agreement

CEO/ CFO

RECOVERY DIRECTOR

RECOVERY DEPARTMENTAL

COORDINATOR

TEST COORDINATOR

PUBLIC RELATION

OFFICER

BUSINESS RESUMPTION

MANAGER

BESINESS CONSULTANT

EMERGENCY

CONTINGENCY PLANNING

COORDINATOROR

CONTINGENCY

PLANNING DIRECTOR

RECOVERY TECHNICAL

SUPPORT MANAGER

BUSINESS RESUMPTION

ANALYSIS

DATA CENTRE RECOVERY

COORDINATOR

•PURCHASE DEPARTMENT

•BILL BOOKING SYSTEM

•BANK PAYMENT

•CASH PAYMENTS & CASH RECEIPTS

•MAINTAIN RECORDS

•RECONCILIATION OF BANK STATEMENT

DESIGNATION Salary (Rs. In ) 2016

Director 250000

GENERAL MANAGER (45000*2) 90000

DEPUTY MANAGER (35000*2) 70000

ASSISTANT MANAGER (20000*6) 120000

DEPUTY MANAGER (19000*4) 76000

RETAIL PLANNER(18000*4) 72000

EXECUTIVE(12000*5) 60000

EMPLOYEES(10000*50) 500000

WORKER(6000*25) 150000

OFFICER(9000*4) 36000

ASSISTANT OFFICER(7000*4) 28000

2016 2017 2018

Income

Sales Turnover 5,615.49 6,307.39 7,344.79

Less: Excise Duty 0.00 0.00 168.80

Net Sales 5,615.49 6,307.39 7,175.99

Add: Other Income 55.47 14.82 229.59

Add :Stock Adjustments 10.16 12.58 25.48

Total Income 5,681.12 6,334.79 7,431.06

Expenditure

Raw Materials 3,539.83 3,835.34 4,356.44

Add: Power & Fuel Cost 52.27 65.12 67.42

Add: Employee Cost 143.50 172.45 176.79

Add: Miscellaneous Expenses 1,518.52 1,650.44 1,829.32

Continue..

Operating Profit 371.53 596.62 771.50

PBDIT 427.00 611.44 1,001.09

Less :Interest 37.74 5.44 1.21

PBDT 389.26 606.00 999.88

Less: Depreciation 57.08 63.38 117.27

Profit Before Tax 332.18 542.62 882.61

PBT (Post Extraord Items) 332.18 542.62 882.61

Less: Tax 98.31 172.79 260.20

Net Profit 233.87 369.83 622.41

2016 2017 2018

Sources Of Funds

Total Share Capital 23.91 23.99 23.99

Equity Share Capital 23.91 23.99 23.99

Add :Share Application Money 2.29 0.00 0.00

Add :Reserves 612.50 829.47 1,211.63

Net worth 638.70 853.46 1,235.62

Secured Loans 5.23 4.62 4.30

Add: Unsecured Loans 189.24 0.00 0.00

Total Debt 194.47 4.62 4.30

Total Liabilities 833.17 858.08 1,239.92

Continue……. Application Of Funds

Gross Blockd 777.53 929.10 986.66

Less: Accum. Depreciation 325.85 383.44 460.71

Net Block 451.68 545.66 525.95

Capital Work in Progress 128.44 97.22 48.22

Investments 279.60 372.99 661.04

Inventories 331.49 366.86 345.74

Sundry Debtors 77.12 53.69 70.98

Cash and Bank Balance 64.48 65.78 186.67

Total Current Assets 473.09 486.33 603.39

Loans and Advances 350.22 342.24 623.39

Total CA, Loans & Advances 823.31 828.57 1,226.78

Current Liabilities 576.90 660.98 811.16

Provisions 272.96 325.38 410.91

Total CL & Provisions 849.86 986.36 1,222.07

Net Current Assets -26.55 -157.79 4.71

•Investment in food processing industry in Armenia is risky

because of low GDP contribution, and competition.

•India has great scope in food processing industry because

of domestic demand is high.

•High cost of Armenian food.

•Lack of government assistance.

•Lack of modern technologies.

•Low production volumes.

•Lack of laboratories and quality control.

Parle Products Pvt. Ltd. is now lagging in services to retailers

because of improper supply and distribution in some areas

and competitors taking advantage of these points.

Grand Candy" company is the largest domestic production

facility in Armenia.

"Grand Candy" never uses cheap and low quality ingredients

or artificial additives of any kind.

The advantage of "Grand Candy" products is the high quality

and the use of natural ingredients.

Parle has a scope to start its business in Armenia.

• www.business.mapsofindia.com

• www.datanetindia-ebooks.com

• www.foodprocessingindia.co.in

• www.uttar-pradesh-state.infoisinfo.co.in

• www.googleweblight.com

• www.ibef.org

• www.makeinindia.com

• www.indianembassy.am

• www.ameria.am

• www.uptourism.gov.in

• www.tripadvisor.in

• www.tourismarmenia.org

• www.agriculture.up.nic.in

• www.investinarmenia.am

• www.reportlinker.com