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JIVRAJ TEA LIMITED is a Progressive Company

JIVRAJ TEA LIMITED is a Progressive Company

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its a projec on jivraj tea ltd
its a projec on jivraj tea ltd

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Published by: cul239 on Feb 10, 2010
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JIVRAJ TEA LIMITED is a progressive company covering the global market with high Quality Indian teas.

Company is pioneering this business from last more than 50 years.

Shri Sureshbhai Jivraj founder of the Jivraj Group has started his journey since 1925 & than expanded the business in 1960 opening the 10 retail outlets in span of 10 years. Entry of the second generation in business has pioneered the modernization process and launched the packed tea in 1991. Amazing skill of tea testing by the group of professionals resulted into quality products and helped the company to achieve 80% market share in Southern Gujarat area. The company is successfully growing in other edges of the states like Maharashtra, North Gujarat etc. Jivraj no 9 tea is also popular in USA, UK & CANADA due to its rich taste, aroma & colour. Jivraj is offering special blend to gulf countries known as Lajawab Tea.

INFRASTUCTURE
Jivraj Tea Limited owes 54 retail outlets, 272 authorized dealer & servicing 20,000 outlets directly across the Gujarat & Mumbai. The production house is located at sachin, Surat, having production capacity of 9.0 million kilo annually. As per quality policy Company maintain all the hygiene standards to deliver safe & healthy product. Jivraj have also imported tea bagging machine—Constanta’s Double Chambered Tea Bag, fully automated with No Human Handling, having production capacity of 180 tea bags per minute.

PRODUCTS
The following are the products of Jivraj Tea Ltd.: • J9 Tea • Jivraj 9 Tea • Anokhi Tea • Jivraj Bhagal Cha • Lajawab Sugar • Lajawab tea & Lajawab tea bags

1.

J9 Tea :
The newly launched J9 has been identified for a whole new consumer segment. Consumer belongs to this segment is ready to pay for the finest quality of tea. The J9 is the tea for the premium customers. It’s a very good blend of the orthodox tea & CTC (Cutting-Tearing-Curling) leaf tea which delivers the Taste, aroma & colour to the consumer. J9 green tea has specially meant for the tea connoisseurs. J9 green tea also serves to the health conscious consumers. The tea has been specially made for the consumers who are health conscious and who look for calorie free products. The J9 green tea is just the thing for those health conscious people who’re looking for an effective and refreshing way to stay fit. Every leaf of J9 green tea has been thoughtfully picked,

keeping your well-being in mind. J9 green tea gives you a mild tasting, fresh cup of golden tea. It is also considered an ideal drink after meals.

2.

Jivraj 9 Tea :
Jivraj 9 Tea is the most popular product from the house of Jivraj. It has a two variant i.e. Jivraj 9 Leaf Tea & Jivraj 9 Dust Tea. Jivraj 9 Leaf Tea is a pure Assam tea. It gives full bodied cup of tea with colour, taste & aroma. The blend and taste of the tea has been maintained through the years in order to keep the consumers providing their Favorite tea. The Jivraj no 9 is the largest selling brand of the company. Hence the company has taken special care of providing the product in all possible forms.

Jivraj 9 Dust tea is also CTC tea. This tea has very small granules. In fact it is in powder form. This blend has specially meant for the Tea Lari, canteens, hotels etc. Jivraj 9 Dust tea delivers the desired colour & taste at low cost.

3.

Anokhi Tea :
The Anokhi is a true necessity for the masses. It is a blend of Assam, Nilgiri & Dooars garden which delivers strong taste, colour & aroma. Anokhi has two variants: Leaf & Dust. Anokhi Leaf is for the households who look forward for the value for money Tea where as Anokhi dust is for the Tea Lari & small hotel & canteens.

4. Jivraj Bhagal Tea :
Jivraj Bhagal Tea is the heritage brand from the house of Jivraj. It is a CTC tea. It has two variants: Leaf & Dust. Jivraj Bhagal Cha serves to the traditionalist consumer

5. Lajawab Sugar:
Besides tea the Jivraj tea limited produces Lajawab Sugar. Usually sugar is purchased from local dealers and shop vendors. There are high chances of adulteration and presence of unhygienic particles in the sugar. Hence the company introduced the brand “La Jawab Sugar”.

6.

Lajawab Tea & Lajawab Tea Bags:
Another product from the house of Jivraj is the La Jawab tea. This is the tea which is very less known in India. This brand of tea is exported only in the gulf countries. The La Jawab Tea is made from leaves plucked from the finest tea estates of south India. Each leaf of tea is carefully picked to create a special blend that’s just perfect for the UAE and gulf market. Its exotic taste, great aroma and good liquor. The tea is available in Leaf and Tea bag format. Unlike the Indian marketed brands the La Jawab tea is available only in Box packs matching the international standards

INVENTORY MANAGEMENT

Inventories are present at three different levels in the company: a) Raw material Inventory.

b) Work in Process Inventory. c) Finished Inventory.

a) Raw material inventory
In Jivraj Tea Ltd. once the raw material reaches the factory, the raw material is kept in the storage area where the proper care. Tea catches any type of smell at very fast rate. So certain steps are necessary to be taken so that the quality of raw material remains the same. The total amount of raw material bags that reaches the factory by is noted by the warehouse incharge and then it is unloaded in the godown. The following steps are taken by the company to ensure the quality of the materials:1. The storage area is made completely weather proof so that tea does not catch any smell.

2. The cleaning of storage area is done every morning.
3. The human touch is avoided from all the process that starts from keeping the raw material

till packaging is done.

a) Work in Process Inventory
During the process of production special care is taken to maintain the proper quality of the product. Whenever the blending of tea is required the raw material are safely taken to the blending machine and while putting the raw material in the machine any kind of human touch is avoided. After the completion of the blending process the material is taken out from that machine and is kept in trolley and during this process also human touch is avoided. Now in packaging process also the material those are used in pouch packing and even in box packing are all odourless and virgin. This type of packing

material helps as tea does not catches any smell from it. The packaging material ensures that the tea does not get wet or catches any types of odour.

b) Finished Goods Inventory
This consists of those packed tea packs which are ready for sales in the market. They are the most important part of the whole inventory as they lead to sales. After packaging this tea bags are packed in boxes which are used to transport this tea bags to the dealers. The regular cleaning of the finished good warehouse ensures the hygiene of the finished product. During monsoon this whole boxes are covered with the plastic type material and then are disposed to various outlets through transport system.

CLASSIFICATION OF INVENTORIES ACCORDING TO ABC ANALYSIS & VED ANALYSIS

➢ ABC ANALYSIS
Jivraj Tea Ltd. produces various types of tea which is targeted to different segments. Each type of tea is targeted to specific segment as per the taste and lifestyle of that segment. The cost structure and pricing is also different for each type of tea. As per ABC analysis, A type of goods are those which are less in number but high in value. Here, the J9 which is premium segment tea forms less part of the inventory but it contributes to more margins in profitability. The B class refers to that tea which is not to high and not so low category also. Here Jivraj 9 which is targeted at the middle class segment and family oriented people. This tea is consumed highest in their portfolio. The C class, which is Anokhi which is the lowest category tea, is targeted at the lowest state of the society. This forms the maximum part of the inventory and contributes less to the margins.

➢ VED ANALYSIS
As per VED analysis; In Vital class they have the raw material, the blending machine and the packaging machine. Without these three things the production process will stop immediately. And in the next class i.e. Essential class they the material equipments such as the conveyor belt, the hand cart etc. Without these things the production will slow down but it will not get stop immediately as the man can carry the material from one place to another and the rest all items are Desired items.

MANUFACTURING PROCESS
The following steps are undertaken at Jivraj Tea ltd for the production of tea: • •

Withering Rolling Oxidation

• • • •

Blending Drying Sorting Packing

Although the process is relatively simple, each step has to be controlled carefully to obtain the proper flavours and taste.

Withering
The process of tea production start with the process called “withering”. The objective of withering is to reduce the moisture in the tealeaf by up to 70% (varies from region to region). Tea is laid out on a wire mesh in troughs. Air is then passed through the tea removing the moisture in a uniform way. This process takes around 12 to 17 hours. At the end of this time the leaf is limp and pliable and so will roll well.

Withering machine

Rolling
After the withering process, Tea is placed into a rolling machine, which rotates horizontally on the rolling table. This action creates the twisted wiry looking tealeaves. During the rolling process the leaves are also broken open, which starts the third process.

Rolling machine The CTC production method is used for the production of tea for the finer end of the scale, i.e. fanning and dust grades. These teas are usually destined for teabag production. The CTC production method: CTC stands for crushing, tearing and curling. The withered leaf is often cut to a uniform size by machine. Then the leaves are fed into the CTC machine where they are crushed, torn and curled in a single operation by metal rollers. The extracted cell sap is collected and added to the leaves again. The crushed leaves are then oxidized, dried and sorted. The CTC method is mainly used in the production of J9 Tea, Jivraj 9 Tea, etc.

Oxidation
Once rolling is complete, the tea is either put into troughs or laid out on tables whereby the enzymes inside the tealeaf come in to contact with the air and start to oxidize. This creates the flavour, colour and strength of the tea. It is during this process that the tealeaf changes from green, through light brown, to a deep brown, and happens at about 26 degrees centigrade. This stage is critical to the final flavour of the tea, if left too long the flavour will be spoilt. Oxidation takes from between half an hour to 2 hours. This process is monitored constantly with the use of a thermometer along with years of experience. The longer oxidized, the darker the tea. The tea then passes to the stage of blending to obtain various flavours.

Blending

Now during the time of blending the tea, the material is then taken to the blending machine with the help of hand cart. Blending is a compilation of various teas in the right proportion to form a right blend. The blending is required to have the right taste, flavour, color and aroma. During blending process, the magnet that is installed in that machine helps to remove all the iron particles from the tea. This will make the tea more pure. Then the tea is passed to the phase of drying.

Blending machine

Drying
To stop the oxidation process the tea is passed through hot air dryers. This reduces the total moisture content down to about 3% and stops the enzymes. The oxidation will be stopped by this process, and now the dried tea is ready to be sorted into grades before packing.

Drying machine

Sorting :
Sorting may be defined as a procedure in which particles of bulk tea are separated into grades of different sizes. This sizing can be done either manually or by using different sizing equipments. Sorting meshes of various sizes are used to grade the tea.

Sorting machine

Packaging
Tea is normally packed in large wooden boxes and exported. It can further be packed in smaller packages, tea bags etc. For this Jivraj have imported tea bagging machine—Constanta’s

Double Chambered Tea Bag, fully automated, having production capacity of 180 tea bags per minute. Once the Packaging process gets over, then these finished goods of the company are then transferred to the storage area of finished goods with the help of hand cart.

Packaging machine

Flow diagram of the manufacturing process:

PRODUCTION PLANNING
In Jivraj Tea Ltd. Production plan is prepared on monthly basis. The production plan is prepared by the head of the company. The two main factors which are considered while planning the production are: • • Past sales record Seasonal variation

For instance, in winter the consumption of tea goes up and so when preparing the plan in winter, the head looks for such inputs from wholesalers. The production plan is prepared for all the different products of Jivraj from the head office located at Surat. As the size of the warehouse is not much the plant manager is not able to make the complete production as per the sales plan. Suppose there is a sales of J9 is 25000Kg/month then Mr. Kennedy Modi the plant manager makes only 5000Kg first and when that stock is about to get over then only he starts making another production of that product. This was just an example but such production plan is prepared for all the products and so the above process is done for various products. This process is fully automated and so the plant manager gets the complete detail of how much he has to produce in this month and that of which product on his computer. The packing material also needs certain amount of time to reach to the factory and so the plant manager keeps the record of it regularly. Pouch packing material takes around 45 days to reach to the factor after placing an order while the Roll packing material takes around 25 days. So the steps are taken so that the packing material of both the varieties are in stock through out.

PRODUCTION PLAN → MATERIAL REQUIREMENT PLAN → PURCHASE PLAN
In Jivraj Tea Ltd. as soon as the production plan is prepared the number of order to be given is automatically decided from the head office and so before giving the order of raw material various things are to be seen.

In Jivraj Tea Ltd also, they do prepare material requirement plan after preparation of production plan, the person who makes the Material Requirement Plan firstly draws his attention on raw materials i.e. tea, packaging material and other equipments and then he will check the existing stock of raw materials and equipments by asking the plant manager of the existing stock of raw material. The stock of packaging material is looked by the plant manager only and gives order as per the need. Then planner will prepare the material requirement plan which consist requirement of different products of tea such as J9, Anokhi, Jivraj 9 etc.

From the material requirement Plan Company can identify in what quantity the raw material and other thing are required to purchase. Purchase plan include those things which are not in stock. In the tea business there is no regular supplier because the taste of the tea of the same garden changes at any time. After purchasing the materials, plant manager keeps these material in storage area (Godown) and then these material are use from storage area whenever requires.

∗ Production system deployed by the company
As the company is manufacturing various variants of tea, Batch production system is deployed. Different types of teas are manufactured in to various batches on the basis of their requirement

Material requirement planning
The annual demand of tea is approx. 9 million kilo. Therefore the monthly demand is approx. 7, 50,000 kg. now suppose present inventory is 1000 kg, work in progress inventory is 2500kg and the targeted closing stock is 1200 kg, then the schedule production quantity would be:

Thus, the scheduled production quantity is 722800 kg. The raw materials required for the production of tea is tea leaves. They compose up to 30% during production process. Therefore, to produce 1 kg of tea the amount of tea leaves required is 1.3kg (approx) Now the total amount of tea leaves required to meet the forecasted demand is:

Now according to inventory status of tea leaves, the amount of tea leaves required to be purchased is:

Thus the quantity of tea leaves required to meet the forecasted monthly demand is: 892640 kg

LIST OF MACHNES IN VARIOUS DEPARTMENT

Various machines used in the company are: • • • • • • Withering machine Rolling machine Blending machine Drying machine Sorting machine Packaging machine
Packaging machine

Sorting machine

Blending machine

Witheri ng machin e

Rolling machine

Sortin g machi ne

MATERIAL HANDLING SYSTEM

In Jivraj Tea Ltd. there are many material handling equipments which are used right from purchasing of tea till the storage of finished goods in the factory. The following are the material handling equipments used in the factory is as follows:1. Conveyor Belt 2. Hand cart 3. Trolley 4. Pallets

1. Conveyor Belt
The conveyor belt is used to carry raw material from one place to another. The storage space in ground floor is less than the storage space on 1st floor. So the maximum raw material

stock is kept on the 1st floor. The conveyor belt becomes very useful tool for sending goods directly on the 1st floor during unloading the material from the truck.

Worker working on conveyor belt

2. Hand Cart
The hand carts are very helpful tool for moving material from one to another. As the size of the factory is relatively big, hand cart proves to be very useful tool for moving raw material and finished goods from one department to another.

Pallet

3. Trolley
Trolley is basically a big jar type vessel used to carry blended tea to the packaging machine. The blended tea is first loaded in it and then to move at a specific location on the floor where there is a hole in the floor from where the tea falls down exactly where the packaging machines are situated. The trolley can contain a huge quantity of blended tea. The trolley has four wheels which becomes easier for the workers to move. The movement of trolley is in very limited area as it’s very heavy in weight.

4. Pallets
Pallets are also very useful material handling equipments. Pallets are made up of combination of plastic and wood. Pallets are used to carry the heavy boxes from one place to another. However, today company has stopped using this pallet since two years as the entire process has been automated.

But other than the equipments used, there are various systems which are necessary such as transportation. The company purchases their raw material from the different states such as Assam and this activity of reaching raw material from garden to the factory is done via Truck (Road transport). This transportation takes around 5-6 days.

MAINTENANCE PLANNING SYSTEM

In Jivraj Tea Ltd. maintenance of all the machines are done properly and at a regular interval so that the production process does not stop at any point of time. This complete handling is undertaken by the plant manager himself. The various kinds of machines which are there in production department are as follows: 1. Blending Machine 2. Rolling Machine 3. Packaging Machine 4. Withering machine 5. Sorting machine 6. Drying machine

The cleaning of all the above mentioned three machines is done every day in the morning before starting the work on the machines. The parameters of machines are check and see to it that whether there is any problem in two different areas such as Electrical side and Mechanical side.

Both the sides have different aspects which are to be checked. In electrical side, problems related to heater, wiring, heating, temperature controller, thermostat etc are checked and finds if there is any problem in that. Further in Mechanical side, problem related to gear and motor are check and solves if there are any problem.

If some problem is found in the above mentioned sides, he calls an engineer immediately and makes it repaired. There are always provisions made during different weathers like monsoon. They have kept their material and machines in such a way that the weather does not affect the machinery. For Tea pack machine it is kept in an Air Conditioned room, so that this machine does not face any problem because of heat.

The regular maintenance is also done every three months when the engineers come and checks the machinery to ensure that preventive care is taken properly. Preventive care is more beneficial than curative as once the machine breaks down, it will disturb the production plant working itself

QUALITY CONTROL SYSTEM

“Quality” is the measure of how closely a goods or service confirms to specified standard. The company takes every possible step to ensure the quality of the product. The below points clearly shows what steps are taken at Jivraj tea ltd. to maintain the quality at all the three stages i.e. Raw material, Work in Process and Finished goods. 1. Godown is made of weather proof so that the material does not get affected with any other smell. 2. They avoid human touch from storing the raw material till the process of packaging. 3. All the machines in Jivraj Tea Ltd. are of SS304 where the food comes in direct contact. Now because of this, the material in process does not get affected.
4. Packaging material are all of Odour less which is necessary as the tea is very sensitive in

nature and catches any smell very fast.
5. In blending Process the tea is passed through magnet which indeed helps to remove all

the iron particles that the raw material have.

QUALITY CONTROL
∗ Brand

There are 5 major Tea Brands of Jivraj tea ltd. along with their variants and it is the responsibility of this department to ensure that the requirements across all parameters for Tea Quality, Packaging Materials and Shop floor processes are met.

∗ Tea sourcing
Teas for our various brands are sourced primarily from estates spread across Assam, Dooars and Kerala. All surplus requirements are met through the Auction centres located at Guwahati, Calcutta, Siliguri, Cochin, Conoor and Coimbatore.

Tea blending

Jivraj tea ltd. has an experienced and skilled team of Tea Tasters and Blenders spread across the various operational locations, who are calibrated to the specific requirements of Tea Tasting to deliver consistent quality of tea as per the standards laid down for each Brand of tea and which are tailor-made to the specific requirements of each target market

Tea packing units

The Quality Group's activities are not only restricted to Tea Tasting and Blending but also extend to the areas of Quality compliance in the field of Packaging Materials against laid down standards and also to carry out intensive shop floor checks and controls to ensure that Regulatory and Production parameters and strictly adhered to. There are a total of 5 wholly owned Packeting units and 4 Third Party units where a team of Quality Group Personnel are located to monitor and oversee laid down Quality standards

∗ Customer Complaint Management System

A time bound system is in place to ensure that regular feedback on quality deliveries is encouraged by interacting with our valued Customers. All customer complaints are studied, analyzed, complaints Docketed, a detailed root cause analysis done after which the complaint is closed. This ensures that our customers remain loyal and all their complaints are addressed and acted upon.

∗ Bench Marking
In order to maintain product superiority vis a vis competition, regular Benchmark tasting of competitive Brands is carried out by the Head Quality Group.

∗ Development of New Blend Formulations
The Q-Group works closely with the Marketing team to design and develop new blends for emerging markets.

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