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INTRODUCTION
SUPPLY CHAIN MANAGEMENT (SCM)
A supply chain is a network of facilities and distribution options that performs thefunctions of procurement of materials, transformation of these materials into intermediate
and finished products, and the distribution of these finished products to customers.
Supply chains exist in both service and manufacturing organizations, although the
complexity of the chain may vary greatly from industry to industry and firm to firm.
Supply chain management is typically viewed to lie between fully vertically integrated
firms, where the entire material flow is owned by a single firm and those where each
channel member operates independently. Therefore coordination between the various
players in the chain is key in its effective management. Cooper and Ellram [1993]
compare supply chain management to a well-balanced and well-practiced relay team.
Such a team is more competitive when each player knows how to be positioned for the
hand-off. The relationships are the strongest between players who directly pass the baton
(stick), but the entire team needs to make a coordinated effort to win the race.
To simplify the concept, supply chain management can be defined as a loop: it starts with
the customer and ends with the customer. All materials, finished products, information,
and even all transactions flow through the loop. However, supply chain management can
be a very difficult task becausein the reality, the supply chain is a complex and dynamic
network of facilities and organizations with different, conflicting objectives.
DEFINITIONS
Supply Chain Management (SCM) is the process of planning, implementing, and
controlling the operations of the supply chain with the purpose to satisfy customer
requirements as efficiently as possible. Supply chain management spans all movement
and storage of raw materials, work-in-process inventory, and finished goods from point-
of-origin to point-of-consumption.
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NEED OF THE STUDY
Traditionally, marketing, distribution, planning, manufacturing, and the purchasingorganizations along the supply chain operated independently. These organizations have
their own objectives and these are often conflicting. Marketing's objective of high
customer service and maximum sales dollars conflict with manufacturing and distribution
goals. Many manufacturing operations are designed to maximize throughput and lower
costs with little consideration for the impact on inventory levels and distribution
capabilities. Purchasing contracts are often negotiated with very little information beyond
historical buying patterns.
The result of these factors is that there is not a single, integrated plan for the
organization---there were as many plans as businesses. Clearly, there is a need for a
mechanism through which these different functions can be integrated together. Supply
chain management is a strategy through which such integration can be achieved.
In addition to cost reduction, the supply chain management approach also facilitates
customer service improvements. It enables the management of:
inventories,
transportation systems and
whole distribution networks
so that organizations are able to meet or even exceed their customers' expectations.
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SCOPE OF THE STUDY:
The study was conducted to know the market position in supply process of planning,
implementing, and controlling the operations of the supply chain with the purpose to
satisfy customer requirements as efficiently as possible at ITC Ltd. The main focus was
to know the needs to make a product or service and deliver it to customers.
OBJECTIVES
This chapter is going to deal with the objectives and methodology used for the
study. This part provides the information of which methodology has been used for thestudy and what are its main objectives to study the supply chain analysis with respect to
selected ABD Nuts, Spices& Chilies.
To provide the conceptual frame work on supply chain analysis.
The result of these factors is that there is not a single, integrated plan for the
organization.
To study the supply chain operations and to understand the operations at ITC Ltd.
To analyze the supply trends with market of selected ABD Nuts, Spices& Chilies.
To offer the findings and suggestions based on the present study period.
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METHODOLOGY
Data sources
Data collection method
Sample size
Sample unit
Data Source
Primary data:
Primary data, by contrast, is collected by the investigator conducting the research.
Secondary data:
The sources for the data collection for the present study are purely of secondary sources
like books and websites.
Data Collection method
The secondary data which is needed for the present study period is secondary data.
Sample size
Sample Unit
Data Analysis:
The data has been analyzed using the following:
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Specific valuation ratios
Key financial ratios
DuPont model for Fundamental analysis and for Technical analysis Moving
Average is applied as a statistical tool.
Specific valuation ratios:
These ratios are used by the banks for specific purpose unlike other companies.
Such as credit deposit ratio, cash deposit ratio, investment deposit ratio
Key financial ratios:
These ratios are used by banks to evaluate the financial results of the banks unlike other
companies.
DuPont Analysis:
The DuPont Model is a technique that can be used to analyze the profitability
of a company using traditional performance management tools. To enable this, the
DuPont model integrates elements of the Income Statement with those of the Balance
Sheet.
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LIMITATIONS OF THE STUDY
The study is confined to only ABD Nuts, Spices& Chilies, which are limited for
coming to conclusion regarding the performance of whole spices industry.
The study is limited by time and cost factors.
The study is analyzed on the limitation of values availability.
The study is also limited to the dates taken as the sample and the values that stand
on that date.
The study period may not be in detailed or full-fledged in all aspects.
The data taken into account is limited on the time and availability
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INDUSTRY PROFILE
HISTORYAND EVOLUTION OF ITC Ltd:
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively Indianised, the
name of the Company was changed from Imperial Tobacco Company of India Limited to
India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In
recognition of the Company's multi-business portfolio encompassing a wide range of
businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging,
Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education &
Stationery and Personal Care - the full stops in the Company's name were removed
effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.
The Companys beginnings were humble. A leased office on Radha Bazar Lane,
Kolkata, was the centre of the Company's existence. The Company celebrated its 16th
birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee,
(now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the
Company was historic in more ways than one. It was to mark the beginning of a long and
eventful journey into India's future. The Company's headquarter building, 'Virginia
House', which came up on that plot of land two years later, would go on to become one of
Kolkata's most venerated landmarks.
Though the first six decades of the Company's existence were primarily devoted to
the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the
Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company.
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ITC's Packaging & Printing Business was set up in 1925 as a strategic backward
integration for ITC's Cigarettes business. It is today India's most sophisticated packaging
house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel
in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of
ITC's entry into the hotels business was rooted in the concept of creating value for the
nation. ITC chose the hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and indirect
employment. Since then ITC's Hotels business has grown to occupy a position of
leadership, with over 100 owned and managed properties spread across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India. Bhadrachalam
Paperboards amalgamated with the Company effective March 13, 2002 and became a
Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this
division merged with the Company's Tribeni Tissues Division to form the Paperboards &
Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an
immense contribution to the development of Sarapaka, an economically backward area in
the state of Andhra Pradesh. It is directly involved in education, environmental protection
and community development. In 2004, ITC acquired the paperboard manufacturing
facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.
The Kovai Unit allows ITC to improve customer service with reduced lead time and a
wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British
joint venture. Since inception, its shares have been held by ITC, British American
Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco
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became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private
Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing
company and a major supplier of tissue paper to the cigarette industry. The merged entity
was named the Tribeni Tissues Division (TTD). To harness strategic and operational
synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the
Paperboards & Specialty Papers Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri
Business Division for export of agri-commodities. The Division is today one of India's
largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began
in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over
4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in
August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now
operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products business
with the launch of Expressions range of greeting cards. A line of premium range of
notebooks under brand Paperkraft was launched in 2002. To augment its offering and
to reach a wider student population, the popular range of notebooks was launched under
brand Classmate in 2003. Classmate over the years has grown to become Indias
largest notebook brand and has also increased its portfolio to occupy a greater share of
the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books,
Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC
repositioned the business as the Education and Stationery Products Business and
launched India's first environment friendly premium business paper under the
Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive
stationery and office consumables segment. Paperkraft entered new categories in the
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office consumable segment with the launch of Textliners, Permanent Ink Markers and
White Board Markers in 2009.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain
of exclusive stores later expanded its range to include Wills Classic formal wear (2002)
and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular
segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle
became title partner of the country's most premier fashion event - Wills Lifestyle India
Fashion Week - that has gained recognition from buyers and retailers as the single largest
B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a
special 'Celebration Series', taking the event forward to consumers.
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging
opportunities in this area. Today ITC Infotech is one of Indias fastest growing global IT
and IT-enabled services companies and has established itself as a key player in offshore
outsourcing, providing outsourced IT solutions and services to leading global customers
across key focus verticals - Manufacturing, BFSI (Banking, Financial Services &
Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality
and Transportation) and Media & Entertainment.
ITC's foray into the Foods business is an outstanding example of successfully
blending multiple internal competencies to create a new driver of business growth. It began
in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the
brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003
witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's
entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the
Foods business has grown to a significant size with over 200 differentiated products under
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six distinctive brands, with an enviable distribution reach, a rapidly growing market share
and a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the
entire value chain found yet another expression in the Safety Matches initiative. ITC now
markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim
Metro.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood, Madhur, Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath &
body care products for men and women in July 2005. Inizio, the signature range under
Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men
(Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing
world class products to Indian consumers the Company launched 'Fiama Di Wills', a
premium range of Shampoos, Shower Gels and Soaps in September, October and
December 2007 respectively. The Company also launched the 'Superia' range of Soaps
and Shampoos in the mass-market segment at select markets in October 2007 and Vivel
De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.
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Board of Directors
C H A I R M A N
Y C Deveshwar
E X E C U T I V E D I R E C T O R S
Nakul Anand P V Dhobale K N Grant
N O N - E X E C U T I V E D I R E C T O R S
A Baijal S Banerjee AV Girija Kumar
S H Khan S B Mathur D K Mehrotra
H G Powell P B Ramanujam Anthony Ruys
Basudeb Sen K VaidyanathB Vijayaraghavan
P V D H O B A L E
P. V. Dhobale (56) was appointed a Director on the Board of ITC
effective January 3, 2011. He holds responsibility for Paperboards
& Specialty Papers and Packaging businesses of ITC and also
represents the Finance and IT functions on the Board. A Chemical
Engineer from IIT, Mumbai, he joined the erstwhile ITC
Bhadrachalam Paperboards Limited (ITC Bhadrachalam) as a Management Trainee in
http://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#ycdhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#nahttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#pdhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#knghttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#abhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#sbhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#avgkhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#shkhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#sbmhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#dkmhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#hgphttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#pbrhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#arhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#bshttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#kvhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#bvhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#nahttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#pdhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#knghttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#abhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#sbhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#avgkhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#shkhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#sbmhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#dkmhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#hgphttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#pbrhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#arhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#bshttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#kvhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#bvhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#ycd7/28/2019 k soft
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1977 and became its Managing Director in 2000. Following the amalgamation of ITC
Bhadrachalam with ITC in March 2002, and subsequent merger of Bhadrachalam
Paperboards Division with Tribeni Tissues Division, Dhobale took charge of the
Paperboards & Specialty Papers Business as its Divisional Chief Executive.
Dhobale is credited with the successful turnaround of ITC Bhadrachalam in 2001, and
exponential growth thereafter. He spearheaded the growth involving capital infusion of
over US$ 500 million through brownfield organic growth as well as acquisitions. Under
his leadership, ITCs Bhadrachalam Mill has emerged as the largest single-location paper
mill in the country producing more than 400,000 tonnes of papers & boards. Under hisstewardship, and in line with ITCs sustainability strategy, 110,000 hectares of
plantations were developed, the pioneering ECF and Ozone Bleaching Technology were
introduced, ITC became a member of the Global Forest and Trade Network and
successfully implemented a number of Clean Development Mechanism Projects.
Dhobale is an active member of several industry bodies. He is the past President of Indian Paper
Manufacturers Association, past Chairman of the Andhra Pradesh State Council of Confederation
of Indian Industry (CII), and Chairman, Energy Efficiency Council of CII - Sohrabji Godrej
Green Business Centre, Hyderabad. Dhobale is also the Founder President of Indian School of
Business - Centre for Executive Education Alumni Association, Hyderabad Chapter. Amongst
others, he is a Member of the Development Council for Pulp, Paper & Allied Industries, the
Council of Association of Central Pulp & Paper Research Institute, and the World Wide Fund for
Nature (India) - A.P. State Committee.
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k u r u s h n g r a n t
Kurush N Grant (54) was appointed a Director on the Board of ITC
on March 20, 2010. He oversees ITC's FMCG businesses -
Cigarettes, Foods, Personal Care, Lifestyle Retailing, Education
and Stationery Products, Matches and Agarbattis. After completing
his MBA in 1979, he worked with DCM as a Management Trainee
before joining ITC in 1980 in the Marketing function. During his tenure in the Company,
he has handled a wide range of responsibilities in Sales, Brand Management and Product
Development. He was Executive Vice President, Marketing of the Tobacco Division
before becoming Divisional Chief Executive in 1999.
He has been involved in the incubation and development of ITC's new initiatives in the FMCG
sector. He is a Director on the Boards of King Maker Marketing Inc., USA and Surya Nepal
Private Limited, Nepal. He is also the Non Executive Chairman of Wimco Ltd. He is the
immediate past Chairman, CII Eastern Region, and is also a Member of the Executive Committee
of the Indian Chamber of Commerce. He is the Vice Chairman of the Indian Society of
Advertisers. He has been a past Chairman of the National Readership Studies Council, as well as
the Audit Bureau of Circulations, India.
The ITC Vision & Mission
Sustain ITC's position as one of
India's most valuable
corporations
through world class
performance,
creating growing value for the
To enhance the wealth
generating
capability of the enterprise in a
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Indian
economy and the Companys
stakeholders
globalising environment,
delivering superior and
sustainable
stakeholder value
Core Values
ITC's Core Values are aimed at developing a customer-focused, high-performance
organisation which creates value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all
our stakeholders. We will actualise stakeholder value and interest on a long term
sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of
value, quality and satisfaction.
Respect For People
We are result oriented, setting high performance standards for ourselves as individuals
and teams.
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We will simultaneously respect and value people and uphold humanness and human
dignity.
We acknowledge that every individual brings different perspectives and capabilities to
the team and that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and
management practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit
of our goals, we will make no compromise in complying with applicable laws and
regulations at all levels.
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ITC SPICES
With its trading operations based at Mumbai, ITC-ABD has a procurement
network covering Kerala, Gujarat, Maharashtra and Rajasthan. The products are packed
in Jute bags, Polypropylene bags and Paper bags according to the buyers requirements.
The specialty of the division lies in its ability to offer products according to the buyer's
specification, and packaged specifically to suit his requirements. The Spices business
offers a wide assortment of varieties under each product.
History: ABD Nuts & Spices
The division combines people with vast experience in agri-trading with the ITC
Groups credibility to justify its standing in the trading arena. The division was set up in
1989 and since then has handled a wide range of products - such as Sesame Seeds, HPSGroundnuts, Castor Oil, Spices, and Processed Foods etc. Total volume handled is in
excess of 1, 20,000 mts, and the division has established its presence as a reliable and
competitive supplier in the Mediterranean countries, USA, Europe, Far East etc.
Perspectives: ABD Nuts & Spices
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The success of a division depends on the team, their operational logistics, their
positioning in the market and their productivity levels. The Nuts & Spices division has
set certain standards by which it benchmarks its products:
Quality Control - This comes from strict quality focus at every stage, from
procurement to processing and export. ABD has a presence both at the
farm/produce marketing yard level as well as the processing stage. Quality is
ensured through both an ABD representative and an independent quality surveyor.
Business Contacts - Loyalty and a strong relationship in business is built out of
years of experience in a particular industry. ITC-ABD's expertise in the business
and its contacts with Agents\Brokers, Suppliers, Markets etc., has made the supply
chain process effective. It also instils faith in the buyers and makes them come
back to ITC, time and again.
Operational Efficiency - ITC's capabilities on swift procurement and processing,
freighting skills and an ability to deliver promptly as per the buyer's requirement
have increased customer satisfaction levels considerably.
Spices
ITC forayed into the branded spices market with the launch of Aashirvaad Spices in
May 2005. The offering currently consists of Chilli, Turmeric and Coriander powder in
SKUs of 50g, 100g, 200g and 500g each. Aashirvaad Spices, operating in selected
markets of south and east, have spread to a large consumer base and have emerged as a
major player in basic spices in most regional markets.
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Aashirvaad Pickle Mirch Powder
In March 2008, Aashirvaad added a unique variant to its Spices range with the
launch of Pickle Mirch Powder in Andhra Pradesh, a state known for its variety of spicy
pickles. The Pickle Mirch Powder uses the finest of Warangal Bamboo Chillies, which
are sourced directly from the farmers and selected by experts to ensure the right aroma,
pungency and colour.
:: Instant Mixes
Convenience and authentic taste now has a new name with the Aashirvaad
Instant Mix range. This range, launched in March '06, now includes Gulab Jamun, Rava
Idli, Rice Idli and Rice Dosa. Aashirvaad Instant Mixes promise the discerning Indian
homemaker perfect tasting dishes, consistently. The Rava idli Mix is available in 500g
pack and rest of the products are available in 200g packs.
:: Aashirvaad Ready Meals
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Aashirvaad Ready Meals - a range of ten of the most popular Indian dishes in a ready-to-
eat format. This range endeavours to provide the consumer an experience of authentic, home-
made food at an affordable price. These are 100% natural and have zero preservatives.
Chilli History
Everything You Wanted To Know About Chilli History - How They
Circumnavigated The World
On this page we'll take a look at the history of the chilli after Columbus arrived in the
Caribbean and Central America.
What we find fascinating is that the chilli was adopted around the world in a period of
approximately 50 years. This was achieved in a period when horse-drawn and wind-
driven were the primary means of transport. It's almost as if the world was waiting for the
chilli to arrive.
Despite Spain's apparent early claim to the chilli, the Portuguese appear to be the
first traders to have spread the them globally. Portugal's maritime power -
rounding the Cape of Good Hope and reaching India in 1498 - set a course for the
chilli to leave South America.
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The Treaty of Tordesillas in 1494 had effectively split the world in half between
Spain and Portugal, and the Portuguese were eager to exploit their half, especially
Brazil. By the 1500's they were regularly exporting chillies from Brazil, the only
part of South America which Portugal could claim under the Treaty.
During their trips to India, the Portuguese traders stopped in various African ports
along the way. The Africans' fondness for Grains of Paradise, or Guinea
Pepper (Aframomum melegueta), which have a gingery, peppery taste, prepared
them to absorb the pungent chilli into their cuisine with ease. In only a few years,
chillies had traveled as far east as Mozambique. But trade was only one agent of
the chillis spread: Portuguese slave gathering in Africa also played a large part.
While it is possible to trace the chillis move from South America across the
Atlantic Ocean, its crossing of the Pacific is more difficult to pin down. The 1529
Treaty of Zaragosa defined Spanish and Portuguese jurisdiction in the Asia-Pacific
region: the Spanish received the Philippines, and Portugal received the Spice
Islands, or Moluccas (part of Indonesia around Sulawesi).
By 1540, the Portuguese were trading in Indonesia; soon after, chillies made their
way to China. However, it is unclear if the Portuguese were the first to bring the
chilli to China. Indians and Arabs were actively trading with the Chinese long
before the Europeans arrived in asia. Furthermore, Hunan and Szechuan
provinces, whose cuisines use chillies most frequently, were connected to the non-
Chinese world by the Silk Road trade route rather than by coastal ports. Moreover,
at the time, there were no direct overland routes from Chinese ports to those two
provinces.
In 1549, the Portuguese reached Japan, but again it is unclear if they introduced
the chili pepper there, because the Japanese had already ventured to Mexico in
Spanish-designed ships.
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While Africa, India, and Asia quickly absorbed the chilli, Europe seemed reluctant
to use it as anything more than a curiosity or an ornamental. From Spain, the chilli
moved to Antwerp, then to Italy in 1526, and on to England in 1548. Curiously,
the chilli did not reach Eastern Europe through trade with other Europeans.
There are a number of similar but competing theories as to how the chilli did reach
Eastern Europe;
o Muslim merchants may have brought chilli from India through the Persian
Gulf, on Alexandria, and then north into Eastern Europe.
o Alternatively, the Turks could have brought chillies from Asia and then
transported them through the Persian Gulf, Asia Minor, and the Black Sea
in to Hungary, which they conquered in 1526. From Hungary, the chilli
then probably moved into Germany.
o A third possibility has the Portuguese exporting chillies from Hormuz, one
of their colonies in the Persian Gulf, to Eastern Europe as a cheaper
alternative to black pepper.
Interestingly, it was not until 1868 that Europeans learned that chillies were not
originally from India.
Most surprising is the length of time it took for the chilli to arrive in North
America. Despite being grown in Mexico for thousands of years, it was not until
the slave trade was in full swing that the chilli appeared. By 1600, the British and
Dutch had broken the Spanish and Portuguese naval domination, opening up the
spice trade. However there does not appear to have been any demand for chillies
from the Americans as a result of this. Instead, it was the use of chillies in the
African cuisine that is the reason behind their spread. Chillies had become such a
integral part of the African diet that slave traders had to bring large quantities with
them on their trans-Atlantic voyages. Also, to maintain the African slaves' eating
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habits once in North America (and consequently their performance), the plantation
owners had to grow chillies. As a result, it was not until the 17th century that the
chillies had become a staple in North America.
Growing Introduction
Weve put together a series of our most popular articles to help you grow healthy
chilli plants. With the help of the below articles you should have all of the information
you need to help you source chilli seeds, grow your plants, ward off pests and disease,
harvest chilli peppers and even store your crop for use throughout the winter.
Growing Guide
This is our definitive guide to growing chili plants. It provides a step by step guide
to all the stages youll need to go through from selecting and planting seeds, right up until
you harvest your home grown chilies.
Pest & Diseases
Unless you are very lucky indeed there is a fairly high chance your chilli plants may
encounter some form of pests or disease. Luckily this isnt as bad as it sounds and most
problems are ones youll face with all types of vegetable growing. Our pests and diseases
article runs down many of the common problems your plants may develop. For more
specific advice take a look at these resources on combating slugs and snails or dealing
with aphid attacks.
Chilli Gro Lights
We keep saying it but the key to growing healthy chilli plants is to give them lots of
light. Many growers supplement natural light in order to get the maximum growth from
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their chilli plants. You can just do this early in the season using cheap household lights
(like we do) or you can go the whole hog and use purpose built gro lights to potentially
get huge harvests all year round. Read more about chilli lights.
Over Wintering
A common misconception is that chilli plants are annuals. Too many chilli gardeners
throw away their pepper plants at the end of the autumn thinking that they have served
their purpose and will die off over the winter. With just a little luck and the invaluable
advice from our overwintering article you should be able to get most of your chilli plants
through the winter giving you larger, stronger plants next year.
Hydroponics
Growing your chilli plants in a liquid matter with a precise balance of nutrients and
minerals (instead of compost) can produce outstanding growth rates and monster harvest
of peppers. Take a look at our hydroponics guide here.
Chilli Pepper Seeds
Selecting the right chilli seeds to use and the initial germination are perhaps two of
the most important factors in chilli growing. Our chilli seeds article gives you all the
information you need to know about where to buy seeds, how to save your own and some
great tips to germinating seeds.
Growing Bell Peppers
We get a lot of emails and questions from readers wanting to know if they need to
treat their sweet peppers any different form their hot chilli peppers. Weve created a
specific guide to growing bell peppers to try to help answer some of these questions.
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Chili Pepper Seeds
Chili pepper seeds are now easier to come than ever. Once thought of by gardeners as
specialist plants growing chili peppers is easier than most people think. The popularity of
growing chili peppers has boomed over recent years, leading seed suppliers and garden
centers to increasingly stock chili pepper seeds.
A few years ago you were luck if you found a generic packet of Chili Seeds in
your local garden center. Nowadays however many are stocking several of the more
common varieties such as Cayenne, Jalapeno and Habanero. If you require something a
bit more specialist such as chocolate habanero or tepin or bhut jolokia pepper seeds a
simple search on the internet will usually lead you to what you want. There are a number
of reputable companies now selling good seed on Amazon.
Hot pepper seeds lifespan
As with most types of seeds if stored in to cool, dark, dry place the seeds can
successfully last a few years. However it is advisable to try to buy only what you intend
to use for a particular growing season. As with any types of plant seed it is worthinvesting in good quality chili seeds from a reputable supplier as these tend to have a
higher seed germination rate and produce stronger healthier plants that are more disease
resistant and will produce more chillies.
Germinating chili pepper seeds
The first thing you will need to consider is when you should start to germinate your
pepper seeds. If growing in North America or Europe then your aim should be as early in
the year as possible. If you are growing (or just starting your plants off) indoors or in a
greenhouse then you will be able to plant your pepper seeds as early as January/February.
If you plants are destined to be kept outside then your exact timings will be dependent on
your local weather conditions. If starting off indoors start early but remember you will
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not be able to put any plants outside until the last frost has passed so be sure you have
enough space and light available until then
As with germinating any type of seeds the key to success is heat & moisture. Plant your
chili seeds in a standard multipurpose compost, moisten with a mister (as opposed to
soaking) and place somewhere warm. Ideal places are those that provide a constant warm
temperature such as in an airing cupboard, on top of a fridge or computer monitor or in a
cupboard. In addition covering the seeds (either with a propagator lid or clear plastic bag)
will help to keep the moisture in the soil.
There are several thing you can do in an attempt to increase your germination rates.
Some of the techniques described below are believed to work, some are thought of as old
wives tales. However as with any form of gardening none are an exact science and
experimentation is best to see what works best for your particular circumstances.
Pre Soaking your chili seeds in a little water for a few hours can be a good way to
reduce the germination time. The reason this works is that it quickly softens the seeds
outer casing while at the same time prompting the seed to swell in to life. There are
various ideas that soaking your seed in weak tea solutions or vinegar can help increase
germination rates or even help prevent disease in your plants. These may be worth a go
and can be fun to experiment with however regular tap water usually does as good as any.
Temperature of your soil is vital to germination. Annum varieties which include
ornamental pepper seeds such as numex tend to germinate fine at lower temperatures but
other varieties such as habanero or bhut jolkia will require warmer temperatures in the
region of 70-90oF (20-32oC). The temperature will have a massive impact on the speedand success rates of germination so be sure to put your chili seeds somewhere warm
during this phase.
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Yield Definition:
Yield can be defined as the amount of prime product manufactured from a given
amount of materials. In other words to giveforth orproduce by a natural process or in
return for cultivation.
Yield Variance
The yield variance is the result of obtaining a yield different from the one
expected on the basis of input. It occurs when the actual yield differs from the standardyield expected from a given mix of inputs.
The difference between actual output and standard output of a production or
manufacturing process, based on standard inputs of materials and labor. The yield
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variance is valued at standard cost. Yield variance is generally unfavorable, i.e., actual
output is less than standard or expected output, and only rarely favorable.
E.g.:
In sugar refining, a normal loss of yield develops because, on the average it takes
approximately 102.5 pounds of sucrose in raw sugar form to produce 100 pounds
of sucrose in refined sugars. Part of this sucrose emerges as black strap molasses,
but a small percentage is completely lost.
Variance Analysis:
Analysis of variance (ANOVA) is a collection ofstatistical models, and their
associated procedures, in which the observed variance in a particular variable is
partitioned into components attributable to different sources of variation. In its simplest
form, ANOVA provides a statistical test of whether or not the means of several groups
are all equal, and therefore generalizes t-test to more than two groups.
There are three classes of models used in the analysis of variance, and these are
outlined here.
Fixed-effects models (Model 1)
The fixed-effects model of analysis of variance applies to situations in which the
experimenter applies one or more treatments to the subjects of the experiment to see if
theresponse variable values change. This allows the experimenter to estimate the ranges
of response variable values that the treatment would generate in the population as a
whole.
Random-effects models (Model 2)
Random effects models are used when the treatments are not fixed. This occurs
when the various factor levels are sampled from a larger population. Because the levels
themselves are random variables, some assumptions and the method of contrasting the
treatments differ from ANOVA model 1.
http://en.wikipedia.org/wiki/Statistical_modelhttp://en.wikipedia.org/wiki/Variancehttp://en.wikipedia.org/wiki/Statistical_testhttp://en.wikipedia.org/wiki/Meanhttp://en.wikipedia.org/wiki/Student's_t-test#Independent_two-sample_t-testhttp://en.wikipedia.org/wiki/Student's_t-test#Independent_two-sample_t-testhttp://en.wikipedia.org/wiki/Response_variablehttp://en.wikipedia.org/wiki/Random_variableshttp://en.wikipedia.org/wiki/Statistical_modelhttp://en.wikipedia.org/wiki/Variancehttp://en.wikipedia.org/wiki/Statistical_testhttp://en.wikipedia.org/wiki/Meanhttp://en.wikipedia.org/wiki/Student's_t-test#Independent_two-sample_t-testhttp://en.wikipedia.org/wiki/Response_variablehttp://en.wikipedia.org/wiki/Random_variables7/28/2019 k soft
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Mixed-effects models (Model 3)
A mixed-effects model contains experimental factors of both fixed and random-
effects types, with appropriately different interpretations and analysis for the two types.
Agri Business Overview :
ITCs foray into the spices business, through its Agri Business arm (ABD), the
ILTD Division, is an endeavor to provide quality differentiation across the value chain
from the farmer to the customer. Farm interventions are designed to Produce The Buy
rather than Buy The Produce. The customers derive value from Quality Assured and
Identity Preserved spices at Globally Competitive Prices. ITC Spices serves as the
benchmark for spice industry standards. Ever since its inception, it has ensured that it will
grow by co-creating value for the Customer, Suppliers and Farmers. ITC Spices has
gained immense success and reputation through its business activities and looks forward
to place itself on the Global Spice Map as a One Stop Shop for Spices & Spice
Derivatives.
ITC Spices continues to work towards providing augmented quality offering ofproducts and services to its esteemed customers. An endeavor to this end is achieved
through customized growing programs and augmented service offerings spanning
cleaning, blending, packing, storage and shipment. Its facilities are organic certified by
Control Union (Formerly SKAL) and thus it is fully capable of offering organic spices as
well.
ITC shares a century long relationship with the farming community reaching
directly to the farm gate, linking the farming community to the global business circuits
and international best practices. ITC is Indias largest exporter of Agri products valued at
over Rs. 15 Billion (US $ 380 Million) with a wide range of products including Spices.
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CHILLIES.
Chilli (Capsicum annuum L.; Capsicum frutescence.), also called 'red pepper', is an
important cash crop in India and is grown for its pungent fruits, which are used both
green and ripe (the latter in the dried form) to impart pungency to the food. As a
condiment, it has become indispensible in every in every Indian home. It is also used
medicinally, and in chutnies and pickles. The pungency is due to the active principle
'capsicin' contained in the skin and the septa of the fruit. Introduced from tropical South
America in the seventeenth century, it is now grown in all parts of India covering about
7,33,800 hectares. Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu account for
about 75 per cent of the total area and annual production.
GENERAL BOTANICAL ASPECTS.
Capsicum palnts are herbaceous or semi-woody annualsor perennials. The leaves are
ovate, tapering to a sharp point, entire up to 15 cm long, dark green on the upper surface
and pale green on the lower surface. The flowers are small, white and borne singly or in
clusters of 2 or 3 in the axils of the leaves. The fruits are of diverse shapes and sizes
depending upon the variety.
CLIMATE AND SOIL.
The crop is grown from almost the sea-level up to an altitude of 1500 metres in
tropical and subtropical regions with an annual rainfall of 60-150 cm. Very high rainfall
during its growth is harmful. When grown in the hot-weather or in lower rainfall tracts, it
is cultivated as an irrigated crop. The rain-fed crop does well on deep-fertile, well-
drained black cotton soils. In ill-drained soils the plants shed their leaves and turn sickly
even in temporary water-logging. Under irrigation and good manuring excellent crops
can be raised in sandy and light alluvial loams as well as in red loamy soils.
ROTATION.
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Under rain-fed conditions, the crops is rotated with jowar, ragi, cotton, groundnut and
castor. As an irrigated crop, it is grown in rotation with sugarcane, turmeric, ragi, maize
or with any of the vegetables. Since the pests and diseases are common to chilli, brinjal
and potato it is not advisable to include them in a rotation. The irrigated chilli crop issometimes grown mixed with millets, groundnut, cotton , ginger or vegetables. As a
garden crop in northern India, it is sometimes allowed to grow as a stand-over crop for
one or two seasons.
CULTIVATION.
The land is ploughed and harrowed 3 or 4 times to obtain a fine tilth. About 100
cartloads of farmyard manure or compost per hectare is applied at the last ploughing.
Some farmers also do sheep-penning and pen about 5000 sheep per hectare, in addition to
the application of manures. In Andhra Pradesh the crop receives a basal dressing of 10-12
tonnes of farmyard manure or compost. Green manuring is recommended for the areas of
assured rainfall and also for the irrigated crop. In addition, 60 kg of N, 30 kg of P 2O5 and
50 kg of K2O per ha for tyhe rainfed crop and 60 kg of N, 60 kg of P2O5 and 50 kg of K2O
per ha for the irrigated crop are applied as a basal dressing. The land for irrigated chilli is
laid out in beds, 2-3 square metres, or is made into ridges 1/2 to 1 metre apart. The winter
crop is planted from July to September and the summer and the summer crop in February
and March. Whereas these are the two important seasons for its cultivation, a third-crop,
known as the mid-season (May-June) crop, is also taken in certain parts of the country.
The chilli is generally transplanted, though direct sowing is also done in certain parts
of the country, especially in Andhra Pradesh. Seeds taken from healthy, well-matured
fruits selected for the purpose are mixed with ashes and sown evenly in well-manured
nursery-beds. beds are generally 1.2m wide and 15 cm high with channels, with channels
between the beds to facilitate the drainage of excess water. About 1100-1200g of seeds
are sown in 0.01 ha will give sufficient seedlings to transplant in one hectare. The
treatment of seed with Ceresan or Agrosan GN, as a plant-protection against seed-borne
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diseases, is desirable. The seed is protected from the sun with a thin mulch of straw or
leaves. The mulch is removed on the completion of germination in about 7-10 days. The
seedlings are irrigated every day and manured either with ammonium sulphate or with
some oilcake. Spraying the crop with 1% Bordeaux mixture or someother copperfungicide during the third week after sowing is desirable to prevent damping-off. The
seedlings are thinned, if necessary and those growing too tall are sometimes topped. The
seedlings are ready for transplanting in 40-45 days. They are generally transplanted on a
cloudy evening preceding rain, or when it is actually drizzling. A shower at or after
transplanting helps the seedlings to take a quick foothold; in the absense of it, a light
watering is given. Seedlings are planted 45-60 cm apart in straight rows 1/2 to 1 m apart.
In Karnataka furrows, 60 cm apart, are opened with a country-plough along as well as
across the field and two good seedlings are planted along the water-line on one side of the
ridges made 25-45 cm apart. Similarly, in beds a spacing of 45-60 cm is adopted. The
irrigated crop is weeded and hand hoed 3 or 4 times. Irrigation is given at 7-10 day
intervals, depending on the season and the crop growth. The rain-fed crop is given 2 or 3
hoeings with bullock-drawn implements and sometimes earthed up to help the surplus
rain water to flow freely. The crop responds well to good cultivation , irrigation and
manuring. The rain-fed crop is top-dressed with 20 kg of N per ha to be drilled in
between the rows on the 45th day after planting, preferably a good shower. For the
irrigated crop, 100-140 kg of N in 4-6 split doses, followed by a copious irrigation at
fortnightly intervals , starting from the 45th day of planting is recommended to be top
dressed.
VARIETIES.
The varieties under cultivation differ in the size, shape, colour and pungency of the
fruits. The fruits may be thin and long, large and thick, short and bell-shaped, small and
round. The unripe fruits may be green, creamy and yellow or orange. Similarly the ripe
fruits may be of different shades of red. The variety of bell-shaped fruits is the least
pungent and is cooked as an ordinary vegetable. Capsicum annuum and C. Frutescens are
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the two principal species grown in the varieties of the former constitute the chief of the
dry chilli or commercial use.
Crop improvement research at the Indian Agricultural Research Institute, New
Delhi, has produced 'NP 41', a high-yielding pungent chilli and 'NP 46', another chilli
resistant to thrips. 'Hybrid 5-1-5'is high yielding and suitable for the production of green
chillies. Among the non-pungent vegetable types, two American varieties, 'World Beater'
and 'Bell Pepper', and one Russian variety, 'R. 449' are high-yielders. In Andhra Pradesh,
the improved varieties, 'G-1','G-2','G-3','G-4' and 'G-5' and four cultures, 'X-200',
'Ca.960', 'X-196' and 'X-197' are high-yielding and are fast spreading in the state. The
variety 'G-1' is high-yielding and tolerant to thrips, has a persistent calyx and is highly
suited for export. 'G-3' responds well to higher doses of fertilizers. 'G-4' is a strain
suitable for producing green chillies. It has a mild pungency and low seed content. It is
more productive and more tolerant to pests and diseases than 'G-3'. 'G-5' is a short-pod
variety.
HARVESTING.
The crop becomes ready for harvesting in about 31/2 months after planting . The
picking of ripe fruit continues for about 2 months and about 6-10 pickings are taken for
this purpose. The summer crop is wholly disposed of as green chillies. Ripe fruits are
picked along with stalks and are heaped indoors for 3 or 4 days for the partially ripe fruit
to develop the proper red colour. They are then dried in the sun for 4-5 days depending
upon weather conditions and are graded for size and colour before marketing. Unripe
chillies are sometimes oiled and dried for domestic consumption. Commercially, there
are various grades such as the first sort, mixture etc. Grades, such as special medium and
fair are also adopted. Good fruit length, shining red colour, high pungency and strong
attachment of the calyx are the important factors which the merchants consider for
fetching a high price.
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In the USA and other countries, there is a liking for stalkless chilli pods of deeep red
and glossy pericarp. Artificial drying favours the retention of the deep red colour and
smooth and glossy pericarp, as the produce is dehydrated within a short period of 18
hours. Pods of 'G-3', which have a cup shaped calyx and compressed base are reported towithstand the removal of the calyx. The seeds can be retained intact since the thalamus
portion, which is compressed prevents shedding.
YIELD.
The average yield of the rainfed crop is about 500 kg of dry chillies per ha and that of
irrigated crop varies from 1000-2000 kg per ha. The recovery od dry chillies is 25-30 per
cent of the fresh weight.
Chilli production scenario:
India is the largest producer, consumer and exporter of chilli in the world. Other
major producing countries are China, Pakistan & Mexico. India contributes to 30 % ofworld production and only 10-15% of Indian production is exported.
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Chilli varietal Profile:
VARIETIES
Fruit
Length
(cm)
Fruit % Stem % Seed % ASTA Capsaicin SHU
273 9.5 59.2 5.6 35.2 90.0 21000
334 Warangal 7.4 53.0 4.9 42.1 60.0 32000
LOCATION VARIETIES PRODUCTION (MT)
GUNTUR (AP)334, US341, 273, IND,
BYADAGI
40,000
KHAMMAM (AP) TEJA 10,400
WARANGAL (AP)WONDER HOT,
CHAPATA, 3348000
KURNOOL (AP) 341, DD 1,600
BYADAGI (KNTK) K.BYADAGI, DABBI14,000
BELLARY (KNTK) K.BYADAGI
INDORE (MP)No.12, GANESH, US,
JWALA14,000
RAMANTHAPUR (TN) MUNDU
1760
VILATHIKULAM (TN) S.SANNAM
MAHARASTRA BYADAGI, GANESH 500
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334 Guntur 6.7 52.4 5.6 42.0 50.0 23000
INDAM-5 7.8 58.4 5.2 36.4 75.0 50000
341 Badrachalam 8.6 74.0 4.0 22.0 120.0 50000
341Guntur 8.2 45.2 9.2 45.6 130.0 55000
4884 6.8 50.4 7.6 42.0 70.0 80000
Teja 6.8 53.0 6.5 40.5 80.0 75000
Karnataka Byadagi 8.4 55.2 6.0 38.8 145.0 11000
Guntur Byadagi 9.5 73.0 4.5 22.5 145.0 12000-15000
Wonder Hot 12.3 77.6 4.8 17.6 100.0 13000
Chapata 9.0 79.7 8.0 12.3 110.0 8000
Devanur Delux 10.3 69.4 4.8 25.8 130.0 42000
Naga Chilli 5.0 71.0 4.0 25.0 32.0 420000
Birds Eye Chilli 2.0 45.0 4.0 51.0 29.70 >120000
CHILLI SUPPLY CHAIN :
The following are the segments of chilli value chain:
A) Procurement
B) Movement
C) Storage
D) Operations
E) Quality Control
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F) Processing
G) Marketing
Chilli procurement of Spices Business is spread across A.P., Karnataka, M.P.,
Tamil Nadu & Maharastra. The raw material (sun dried chilli) is procured from different
sources. Post procurement, the raw material is moved from sourcing points to respective
storage locations (dry warehouse or cold storages) or to operations points (Semi-
Finished/Finished handling points / processing plants). After the relevant operation, Final
Product or Semi-Finished product is produced and packed in different proportions. Based
on the demand and storage plan, stocks are moved to storage location from where they
will be moved to the end customer once sale takes place.
C. Operations :
Following are the operations involved in chilli supply chain :
Raasi Drying De-stemming De-seeding Packing Labeling Sampling Marking Fumigation Stacking
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Containerization
Raasi:
Purpose -
Blending {uniform mix of grades (a+b / b+c / a+b+c)} To reduce moisture content of the product (11+-1%) Grading - Removal of damage & discolored (DD) pods; mould infested pods
(MIP); broken chilli (BC); insect damaged pods (IDP); pods without stalk (PWS),
loose seeds (loose seeds)
Uniform standard packaging how, where, when man Labeling Cleaning (removal of foreign matter) Quality check
Requirement for Raasi Most farm buy material (IPM, 30.5kg packs) and dealer buy
material (35 kg packs) do not require raasi. Duration of Raasi operation generally ranges
from 4- 10 hours depending on the lot size, number of grades to be mixed, moisture
content of material, prevailing weather condition, material texture (thick / thin pericarp).
Raasi is mandatory for:
Material meant for connection to plant Export material Food Business Division Material
Yield percentage during Raasi operation varies: Moisture loss is (3-5%); loose seeds
yield is (1%); talu/damaged pods - depends on grading intensity; material shrinkage -
depends on type of bag weighment recorded (exact weight or lower values) during
procurement vs weighment during issue for Raasi. Raasi yield of 97% is achieved from
material meant for FBD, this is due to: i) No grading is required, only single grade/blend
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is subjected to cleaning and handling ii) FBD material is procured from Mandi (90%) &
dealer buy (10%). In mandi buy, the lower gross weight of the bag is calculated during
weighment. If bag weight is 35.4 kg, recorded weight is 35 kg gross & 34 kg as net; if
bag weight is 35.8 kg, recorded weight is 35.5 kg gross & 34.5 kg net. If bag weight ismore than 45kg, there is 1 kg standard deduction of material weight apart from deducting
the gunny weight of 1 kg (44 gross & 43 net weight). Also lower gross weight is
calculated during mandi buy to compensate anticipated yield loss due to handling,
spillage, moisture loss. 95% yield is obtained from material meant for ILTD since
grading & all other standard ops are conducted
Post Raasi operations consists of :
Quality check of material Physical analysis for {(dd)damage & discoloured; moisture; mip(mould infested
pods); (bc) broken chilli; (idp) insect damaged pods; (pws) pods without stalk),
(ls)loose seeds}
Sampling : 2 kg sample drawn by standard procedure. 1 kg to lab, 1 kg for control Uniform repacking ( For FBD (35kg net); ILTD-25/30/35kg) Individual bag labeling (operation date, grade, quantity, cost) Label stitching (FBD -white; ILTD - yellow) Yield reconciliation against issue in log book Preparation of repacking statement & physical analysis report & ERP data entry
Drying: Chilli drying operations is for moisture content regulation for processing,
shipment and storage. :
For material to be connected to plant -
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De-stemming : De-stemming is the process of removing the stem and calyx from the
Chills pods. De-stemming operation is done as per customer specification or market
demand. It is done manually by experienced workers. Loose seeds, calyx, white chilli etcare the by products of de-stemming operations. Documents required - Stack Card, De
stemming report, Check weighment register, Issue register
De-seeding: removal of seeds from chilli pods as per customer requirement
Packing: Each lot is uniformly packed in different sizes and in different packing material
as per customer specifications
Labeling: Labeling the bags/stacks for traceability during storage & transportation
Sampling:
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Sampling is done for physical analysis of the product and for QC lab analysis. 2 or 3
representative samples of 1 kg each are drawn from the lot following the standard
sampling procedures; sample bag is tagged (commodity, crop year, grade, date, lot
quantity, customer name, location); 1 sample is sent to the QC lab for analysis; 1 sampleis retained as control; 1 sample is sent to customer (if required). Documents: Sample
dispatch register, sample code format, sample issued book, sample register
Marking:
Markings are given on each bag at the time of buying for traceability:
Marking process Company name(ITC Ltd.)/Bag weight(42.5)/ Grade(F2B)/Date of
buy(19.11)/Lot size(26)/Serial no. of bag(7)
Fumigation:
Fumigation is done for safe storage by killing the insects and storage pests.
Fumigation is done at least once in a year or whenever changes in procedures or
processes occur. Fumigation to be carried by the authorized and trained fumigators only.
All shipments to processing plant should be done only after fumigations and date of the
fumigation to be declared on the loading sheet. Documents: Fumigation register &
certificate
Stacking:
Stacking to be done for effective use of space at Godown and also to maintain lot
identity till it moves out of the godown. Standard stacking pattern to be followed
containing 3 bags/ Unit to ensure compactness and also for maximum utility of the space.
Once the stacking is done, the godown in-charge should immediately tag the stack with
stack card at a prominent location, which received from, operation no., grade, no. of bags,
quantity(net) in kg/MT). Documents Stack card & loading sheet
Containerization:
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D. Storage:
Dry ware house and handling unit infrastructure:
UNIT LOCATION OPERATIONS
TOTAL
CAPACITY
(MT)
INCHARGE
NALLAPADU
GODOWN
NALLAPADU
(NPG) WARE
HOUSING/STORAG
E
100PRAMOD B
(7893563222)
CONTAINER
STUFFING
CERTIFIED BY
SPICES BOARD /
CFS
28
POWDER
STUFFING -
CONTAINERIZATI
ON
18
WHOLE STUFFING- 12MT(10KG
PACKS)/
14MT(25KG
PACKS)
12/14
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SPICES BOARD /
CUSTOMS
FUMIGATION
CERTIFIED
DE-STEMMING 22
RAASI 330
VIJAYA
AGRO
SERVICES(V
AS)
NALLAPDU
RAASI 220
BHASKER
(8897565359)
WAREHOUSE/STO
RAGE100
DEHUMIDIFICATI
ON (BRY AIR)220
MACHINE
CLEANING66
GRADING
CONVE
YOR
DESTEMMING 15
KRISHNA
SPICES
BY PASS ROAD
(MADRAS HIGH
WAY)
RAASI 264 KIRAN
(9949928517)
SUGUNA
RAO
STORAGE 80
DESTEMMING 15
KANAKADU
RGA (KDR)
BY PASS ROAD
(MADRAS HIGH
WAY)
RAASI 176 CHENNAKE
SAVA
(9849919554)STORAGE 45
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SHIVA
CHILLIES
(CKP)
CHINNAKONDRA
PODU
RAASI 120
VANDANAM
(9959452134)
VENKAT
WAREHOUSE/STO
RAGE50
DEHUMIDIFICATI
ON (BRY AIR)220
MACHINE
CLEANING44
GRADING
CONVE
YOR
PALLAKALA
RU DSUPALLAKALARU DE-STEMMING 33
SHUKUR
(9948927543)
SATTANAPA
LLI DSUSATTANAPALLI DE-STEMMING 33
SITTAIH
(9704312069)
SATULURU
DSUSATULURU DE-STEMMING 22
NARENDRA
(9989590952)
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WAREHOUSE OPERATION PROCESS FLOW
DOCUMENT
FLOW
IN
CHARGE
On receipt of material at warehouse, 10% check weighment of
the lot is done
Receipt register,
loading sheet,
gate pass, weigh
bridge challan
Location in-
charge,
clerks and
dealing
assistant
Log book entry is done
Cross check the marking on bags received from cold storage
(grade, lot size, weight)
Received material will be stored in 3 alternatives ways:
i)Material stacked inside due to weather conditions, space
utilization, operation purpose(fumigation / sun dry); ii)
material stacked in outside platform for issuing to operations
for next day; iii) material directly issued for Raasi on the same
day
Stacking of material and issue of bonds grade wise Warehouse bond
Issue for Raasi : 100% check weighment or 10% (square root
of bags) before Raasi issue - depending on variation in weights
(if variation of weight is >10% during 10% check weighment,100% has to be done)
Issue register,
log book, work
order book,
Post Raasi operations
Physical
analysis report,
sampling
register,
repacking
statement, by
product register,
yield register,
check
weighment
register, yield
reconciliation
statement, ERP
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Average Destemming Yields for the Year 2011-12
334
334
Total 341
341
Total Chapata
Cpt
Total INDAM
IND
AM
Total
Teja
Total
Customer IPM
Non-
IPM IPM IPM
Non-
IPM IPM
Non-
IPM
BUCHAN
AN 82.31 82.31 87.85 87.85 86.29 86.29 82.61
EAST
END 85.50 85.50 89.08 89.08 90.14 90.14 84.07
FBD
SNACKS 86.62 86.62 91.72 89.74 90.89 83.84
HEY
LANDS(st
em cut) 88.96 88.96
IBD 80.68 87.23 86.68
ILTD 86.11 83.87 84.65 90.14 90.14 90.67 90.67 90.06 85.57 88.19 82.81
NATCO 84.38 84.38 86.38 86.38 85.49 85.49 82.00
TRS 86.15 86.15 89.25 89.25 82.08
VPSA 83.02 85.56 85.44 82.14
WHOLE
HERBS 84.49 84.39 84.40 80.56 90.00 85.28 80.81
Average
Yield % 85.40 85.56 85.47 88.26 88.26 90.20 90.16 90.18 87.42 85.57 87.09 82.04
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Variety
ANNSFLAVOR
B
UCHANAN
C.V
JAYA
DELTA
EASTEND
ELITE
FBDSNACKS
M
A"SFOOD
NATCO
NSKPAKISTAN
P
.T.T
EGHU
TRS
334 SL 95.30 96.24 97.09
341 SL 98.45 95.83
CPT SL
IPM 273 97.29 97.77
IPM 334 97.67
IPM 341 97.18 96.00 97.38
IPM 4884 97.87 95.74
IPM CPT 96.34
IPM CPT
Pericarp 93.83IPM DD 93.13 97.08 96.34
IPM
INDAM SL 97.41
IPM K Byd 95.95 93.99
IPM Teja 96.94 98.39 97.53 97.06 97.88
IPM WH 96.47 97.23 94.62
IPM WH
SL 97.39
Naga chilli 96.34
Non IMP
Teja SL
Non IPM
273 95.98 94.23
Non IPM
334 96.07 95.34 96.02 96.13
Non IPM
341
Non IPM
CPT 95.42
Non IPM
IND 95.95
Non IPM K
byd 96.98 95.60
Non IPM
Teja 95.14 94.67 95.76
Non IPM 97.58 95.01
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WH
Teja SL 95.66
Handling Yield ILTD
Customer I Qty (Kgs)
Pkd Qty
(Kgs) Targetted Achieved Difference
BUCHANAN 3756.5 3404 92.8 90.61627 -2.18373
ELITE 76709 68683 94 89.53708 -4.46292
FBD-40-MS 50886 49356 96 96.99328 0.993279
HEYLANDS 28068 26525 93 94.50264 1.502636
IBD 19488.5 18870 97 96.82633 -0.17367KFL 15744.5 14687.5 94 93.28654 -0.71346
MASS FOODS 12976 12483 96 96.20068 0.200678
NATCO 105312.8 102834 96 97.6463 1.646296
OMEROGLU 7726.5 7544 97 97.638 0.637999
SWANI 80550.5 77291 97 95.95347 -1.04653
TRS 48260.5 47163 98.15385 97.72588 -0.42796
FBD SNACKS 12483 10225 80.5 81.9114 1.4114
EUROMA 15422.5 15156 96 98.27201 2.272005
CV JAYA 14819.5 14119.6 97 95.27717 -1.72283
NESTLE 9545 9324 97 97.68465 0.684652
Grand Total 501748.8 477665.1 94.28 95.20006 0.920058
FBD
Customer I Qty (Kgs)
Pkd Qty
(Kgs) Targetted Achieved Difference
FBD C1EW 84852.5 82152 97 96.81742 -0.18258
FBD C1UW 147963.5 142285 97 96.16223 -0.83777
FBD C1BW 135852.5 131256 97 96.61655 -0.38345
FBD C4HW 24616 23700 97 96.27884 -0.72116FBD C2JW 16891 16236 97 96.1222 -0.8778
410175.5 395629 97 96.45 -0.55
Destemming Yield ILTD
Customer I Qty (Kgs) SL Chilli Targetted Achieved Difference
BUCHANAN 3017.5 2697.5 89 89.35518 0.355177
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FBD SNACKS 5270 4760 90 90.15444 0.154444
ILTD 7411 6033.5 86 81.82806 -4.17194
NATCO 54416 47012.5 84.09677 86.17235 2.075571
OMEROGLU 6201 5179.5 84 84.22487 0.224866
SWANI 39623.5 33751.5 85.95455 85.18082 -0.77372
TRS 50093 43715 84.88889 86.32284 1.433955Others 12776 10929 85.63636 85.12545 -0.51092
VPSA 1881.5 1476 82 78.15746 -3.84254
FBD SNAKS 6392.5 5479 90 88.53202 -1.46798
Sabatar 6919 5245 76 76.60471 0.604705
Grand total 194001 166278.5 84.87891 85.17976 0.300857
Handling Yield ILTD
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FBD
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Destemming Yield ILTD
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Handling Yield ILTD
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FBD
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Destemming Yield ILTD
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Calculation of some of squares
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Customer I.Qty SL Chilli Targetted Achieved TOTAL T2/n
BUCHANA
N3017.5 2697.5 89 89.36 5893.36 8682923.02
FBD
SNACKS11662.5 10239 90 89.61 22081.11 121893855
ILTD 7411 6033.5 86 81.83 13612.33 46323882
NATCO 55746 48186.5 84.1 86.21 104102.81 2709348762
OMEROGL
U7554 6459.5 84 84.52 14182.02 50282422.8
SWANI 49716.5 42226.5 86 85.01 92114.01 2121247710
TRS 50093 43715 84.9 86.32 93979.22 2208023448
VPSA 1881.5 1476 82 78.16 3517.66 3093482.97
Sabatar 6919 5245 76 76.6 12316.6 37924658.9
Grand Total 194001 166278.5 84.9 85.18 360449.58 7306821144
TJ2/n
418182088
9
307205995
1800.89
806.1813
8
725388244
7
Raw sum of squares
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TOTAL
3017.5 2697.5 89 89.36 16397718.71
11662.5 10239 90 89.61 240867157.2
7411 6033.5 86 81.83 91340135.4
55746 48186.5 84.1 86.21 5429569803
7554 6459.5 84 84.52 98802255.88
49716.5 42226.5 86 85.01 4254822297
50093 43715 84.9 86.32 4420324533
1881.5 1476 82 78.16 5731451.236
6919 5245 76 76.6 75394229.56
RAW SUM OF SQUARES(RSS) 14633249582
CORRECTION FACTOR(CF) G2/N 3608997215
TOTAL SUM OF SQUARES RSS-CF 11024252367
SUM OF SQUARES OF CUSTEMERS T2/N-CF 3697823930
SUM OF SQUARES OF VARIATIES TJ2/n-CF 3644885233
ERROR SUM OF SQUARES 3681543204
ANOVA TABLE
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SOURCE OF
VARIATIO
N
DEGRESS OF
FREEDOM
SUM OF
SQUARES
MEAN SUM OF
SQUARESF RATIO
CUSTOMER 9 3697823930 410869325.5 2.566856876
VARIATIES 3 3644885233 1214961744 7.590327906
ERRORS 23 3681543204 160067095.8
TITAL 35 11024252367
Table value of F at 5% level of signefecance at(9,23)degress of freedom is 2.32
Table value of t at 5% level of signefecance at(3,23)degress of freedom is 3.03
Calculation table for t-test
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Customer I.Qty(x)SL
Chilli(y)
RANK OF
X
RANK OF
Y
(X-
MEAN
OF X)2
(Y-MEAN
OF Y)2
BUCHANA
N 3017.5 2697.5 8 8 37076.34 31555.66
FBD
SNACKS11662.5 10239 4 4 13625.66 20478
ILTD 7411 6033.5 6 6 14822 12067
NATCO 55746 48186.5 1 1 111492 20929.75
OMEROGL
U7554 6459.5 5 5 -60335.25 12919
SWANI 49716.5 42226.5 3 3 99433 84064.56
TRS 50093 43715 2 2 99797.56 87430
VPSA 1881.5 1476 9 9 3763 2912.12
Sabatar 6919 5245 7 7 13798.12 10490
Grand Total 194001 166278.5232068.4
3219734.77
MEAN(X) 194001/9 21555.67
MEAN(Y) 166278/9 18475.33
COMDIND
VARIANCE
37721.625
STANDARD
DEVIATION194.22
T VALUE 19.94
Step 1
The main reasons for achieving high yield is as follows
Initial moitucher content ;
Natco,TRS, Swani are Initial moitucher and the arm are optimum are lower.
Hence the yield loss was low hence this was one of the primary reasons for
achieving yield.
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Varity used;
Natco,TRS, Swani are the high moitucher variety in thats way the yield is
high for all the seasons in that varieties resistance power is high.
Seed content;
For applying seed content is less, then yield is high Natco,TRS, Swani are used
for less seed content in thats way it gives a high yield.
Shrinkage;
If the less number of days shrinkage of yield is very high. The varieties
Natco,TRS, Swani are less moitucher then it dry less number of days shrinkage
then it given high yield.
Stem content;
In the Natco,TRS, Swani varieties of seed the stem content is less that will give
high yield.
Dry warehouse;
Natco,TRS, Swani Chillis are stored in a cold storage at 6-8c at 65-75% of row
material. If more number of days stored in a dry warehouse moitucher is high and
yield is loss
Quality of crop
If the quality of crop is good. Grading of yield is high that means tallu is
low. Natco,TRS, Swani seeds will give good quality of crop. In that case that will
give high yield and low thallu.
Packing;
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In general each packet weight age is 35 to 40 kegs. In that case yield loss is
low. Otherwise if we use packet of wit age is 10kgs to 20kgs the yield loss is high. In that
reasons we use each packet weight age is 35 to40 kegs.
Customer specifications
Customers will give direct specifications to the company in the field of grades,
yield, moictures etc. that will give more helpful to improve company performance.
Step2
Sabater, Omerogiu, Buchanan
The main reasons for achieving optimum yield is as follows
Initial moitucher content ;
Sabater,Omerogiu, Buchanan are Initial moitucher and the arm are high are
lower. Hence the yield loss was optimum hence this was one of the primary reasons
for optimum yield.
Varity used;
Sabater,Omerogiu, Buchanan are a high moitucher variety in thats way the yield
is optimum for all the seasons in that varieties resistance power is high.
Seed content;
For applying seed content is less, then yield is high Sabater,Omerogiu, Buchanan are
used for less seed content in thats way it gives a optimum yield.
Shrinkage;
If the less number of days shrinkage of yield is very high. The varieties Sabater,
Omerogiu, Buchanan are less moitucher then it dry less number of days shrinkage
then it given optimum yield.
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Stem content;
In the Sabater,Omerogiu, Buchanan varieties of seed the stem content is
less that will give optimum yield.
Dry warehouse;
Sabater,Omerogiu, Buchanan Chillis are stored in a cold storage at 6-8c at 65-
75% of row material. If more number of days stored in a dry warehouse moitucher
is high and yield is loss
Quality of crop
If the quality of crop is good. Grading of yield is high that means tallu is
low. Sabater,Omerogiu, Buchanan seeds will give good quality of crop. In that
case that will give optimum yield and low thallu.
Packing;
In general each packet weight age is 35 to 40 kegs. In that case yield loss is
low. Otherwise if we use packet of wit age is 10kgs to 20kgs the yield loss is high. In that
reasons we use each packet weight age is 35 to40 kegs.
Customer specifications
Customers will give direct specifications to the company in the field of grades,
yield, moistures etc. that will give more helpful to improve company performance.
Step3
FBD SNACKS, VPSA, ILTD
The main reasons for getting low yield is as follows
Initial moitucher content ;
Fbd snacks, vpsa, Iltd are Initial moitucher and the arm are high are lower. Hence the
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yield loss was optimum hence this was one of the primary reasons for low yield.
Varity used;
Fbd snacks, vpsa, Iltd are a low moitucher variety in thats way the yield is low for
all the seasons in that varieties resistance power is low.
Seed content;
For applying seed content is less, then yield is high. Fbd snacks, vpsa , Iltd are used
for more seed content in thats way it gives a low yield.
Shrinkage;
If the less number of days shrinkage of yield is very high. The varieties Fbd
snacks, vpsa, Iltd are less moitucher then it dry more number of days shrinkage
then it given low yield.
Stem content;
In the Fbd snacks, vpsa, Iltd varieties of seed the stem content is more that
will give low yield.
Dry warehouse;
Fbd snacks, vpsa, Iltd Chillis are stored in a cold storage at 6-8c at 65-75% of
row material. If more number of days stored in a dry warehouse moitucher is high
and yield is loss
Quality of crop
If the quality of crop is good. Grading of yield is high that means tallu is
low. Fbd snacks, vpsa, Iltd seeds will give good quality of crop. In that case that
will give low yield and optimum thallu.
Packing;
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In general each packet weight age is 35 to 40 kegs. In that case yield loss is
low. Otherwise if we use packet of wit age is 10kgs to 20kgs the yield loss is high. In that
reasons we use each packet weight age is 35 to40 kegs.
Customer specifications
Customers will give direct specifications to the company in the field of grades,
yield, moistures etc. that will give more helpful to improve company performance.
FINDINGS
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ITC Spices believes in the philosophy of Product++ offerings to cater to the entire
bandwidth of requirements of the customers. It provides the following services to meet its
customers specific requirements
Controlled environment storage systems for augmented shelf life
ITC Spices facilitates Just In Time shipments to adhere to processing plan
of its customers for minimizing storage costs as well as minimizing deterioration
in quality during storage
Shipments in customized forms, blends and packing to meet the varying end use
requirements
ITC Spices offers its customers complete peace mind through a dedicated Value
Added Support system which facilitates storage, negotiation of competitive freight
rates, scheduling a wide array back end services
ITC Spices takes utmost care at delivering the Best Quality Indian Spices adhering to
various quality norms of ASTA, ESA, PFA and Agmark as per the requirement of the
customers. The Supply Chain is modified to straddle the entire width of the value chain
of production and processing to ensure its customers have the choice of different grades
of spices on the basis of Active Ingredients and not just physical cleanliness
ITC Spices team works towards innovation to facilitate availability of improvedquality Indian spices to customers. The following classes of specialty products are
available under the Spices portfolio
ITC Spices' Quality Philosophy is premised on delivering value to customer,
which starts from procuring Quality @ Source and Quality Mapping across
various stages of value chain.
ITC Spices' emphasis on hygiene and quality control is reflected in ts state-of-the-
art laboratory which is equipped with the best 'Quality Control' facility.
SUGGESTIONS
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CONCLUSION
The study considered spices industry such as nuts, chilies etc, The performance of thecompany is studied through supply chain analysis i.e. fundamental and technical analysis.
Supply chain management (SCM) is the combination of art and science that goes into
improving the way your company finds the components it needs to make a product or
service and deliver it to customers. It is the process of planning, implementing, and
controlling the operations of the supply chain with the purpose to satisfy customer
requirements as efficiently as possible. Supply chain management spans all movement
and storage of goods, work-in-process inventory, and finished goods from point-of-origin
to point-of-consumption
BIBLOGRAPHY
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Reference Book:
Supply chain management sunil chopra&peter meindle
Logistics approaches to supply chain management Edward J Bradi
Logistics and supply chain management D.K.Agarwal
Supply chain management Rahul V Altekar
Websites:
www.google.com
www.itc.co.in
www.itcspices.com
www.itcportal.com
www.wikipedia.com
http://www.google.com/http://www.itc.co.in/http://www.itcspices.com/http://www.itcportal.com/http://www.wikipedia.com/http://www.google.com/http://www.itc.co.in/http://www.itcspices.com/http://www.itcportal.com/http://www.wikipedia.com/