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Contents

Page no:

Introduction:
2
History of the company
Introduction to Company
Philosophy of the company

Organizational Design:
6
Top Management
Departmentalization
Organisational Chart

Production:
10
Product Portfolio
Plant operation
Quality Control

Marketing:
20
4 P’s of Marketing
Target customers
Place: Distribution Network
Promotion and advertising campaign:
Competitors
Exports

Finance:
26
Sources of finance

Personnel:
28
Strength of personnel department:
Recruitment policy
Training and Developments

Swot Analysis:
31
Awards and Achievements:
33
Bibliography
35
Sources of Information:
37

1
Introduction

2
History of the company

With blessings from Mahatma Gandhi, Sir Narandas Desai set foot on Indian soil in the
year1982. After gaining experience in tea business as an owner of tea garden in South
Africa which then was mired in racial misgivings that made the continuity of his business
a futile endeavor there.

He started WaghBakri Tea Company in the year 1982, which then was represented by
small company retail shop at Ahmadabad, Gujarat. Since then the growth of the endeavor
has been phenomenal and presently WaghBakri Tea Company has an employee base of
professional managers and skilled personals with ever increasing space for more, to tend
to the expanding group enterprise in India and abroad.
WaghBakri tea house markets various tea brands in loose leaf cartons and tea bags for tea
lovers all over the globe – the finest certified black teas from Darjeeling tea estates,
Assam and Nilgiri. The company sells organic black and green tea for the health
conscious.

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Introduction to Company
WaghBakri Company is a family owned tea business amongst conglomerates and mega
corps that tower the International business scenario all over the world. WaghBakri house
is one of the largest tea producers and sellers in India today. The group is making leading
strides in tea exports and ships in bulk and retail consumer packing to countries all over
the world. Its outstanding performance is credited to excellence in management and a
spirit that results into a quantum jump in annual growth in face of stifling competition
and cut throat scenario that dominates the tea industry today.

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Philosophy of the company
Sir Narandas Desai, our founder, believed that his Company was not just about tea, but
more a confluence of his values and beliefs.

Wagh- Of the strong and the meek

Bakri- Of co-existence and harmony.

To make Tea a common denominator that overrides differences of caste, creed, culture
or color.

The same beliefs are reflected in out Corporate Philosophy even today.

• Build long lasting relationships through trust and fair play towards all
stakeholders.
• Is result oriented. Contribute positively.
• Be progressive and lead from the front. Change with the times.
• Be socially responsible. Return to the society a share of the gains from
commercial enterprise.

5
Organizational Design

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When two or more persons work together towards a common goal, authority and
responsibility are allocated among them so that their efforts may become effective. This
is the task of organizing. It is known as designing of organizational structure.

Top Management
Top management consists of those executives who have the authority to take the
important policy decision. Top management is referred to as top level or highest level or
director level. It is made up of the board of directors, managing directors and the other
key officers.

Top management is found invariably in all types of business organization. It is made up


of the owner himself in the individual proprietorship, active partner in the partnership,
firm and director and chief executive in a joint stock company. The managing committee
is treated as top-management in co-operative society. At the top level management, there
is more of management than administration. The degree of the success of the business
unit mainly depends on the degree of efficiency of its top level management.

The WaghBakri group is led by Mr. Piyush O. Desai, a highly regarded tea expert and
tea taster, with rich experience in the tea business. He plays an active role in the tea
industry by being an involved member and leader of various tea associations. He was the
Chairman of Federation of Tea Traders Association (FAITTA) of India during the years
1998-2002. Mr. Desai is also strongly committed to philanthropic cause and regularly
contributes to the society.

Supporting him are Mr. Pankaj R. Desai, Managing Director - Finance and Mr. Rasesh R.
Desai, Managing Director - Marketing.

Mr. Pankaj R. Desai has won WaghBakri a respectable, profitable and committed
standing in the financial community. An able tea taster himself, he has over 30 years
experience in the tea industry.

Mr. Rasesh R. Desai has created a formidable Marketing network that is enviable even
among multinationals. Our systems have been a source of emulation for many
companies. It also attracts attention as a case study in premier business schools of India.

Mr. Parag Desai and Mr. Paras Desai, management graduates from prestigious business
schools in United States, are hands-on contributors among the fourth generation of
management.

Mr. Harish Parekh, Ex-Chairman of J. Thomas Company and a veteran tea professional,
is on the Board of Directors. Mr. M.P. Shah, Management Consultant from Mumbai is
also part of management team.

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Departmentalization
Meaning:

Departmentalization is the process of grouping activities into unit for purposes of


administration. With the help of departmentalization, an organization can take the
advantage of specialization.

Various activities can be grouped into departments on following several basis;

• Functions
• Customers
• Products
• Regions
• Time
• Process
• Combined base

Among the above mention basic, function is the most popular basis of
departmentalization. The enterprise is divided into the departments on the
basis of functions like production, sales, personnel, finance, etc.

From a one man Company to over four hundred employees, the WaghBakri Group is
today a large family.

While a strong sense of family bonding overrides the organization, professionalism is


encouraged by including experts in the team from various fields. The work environment
extends adequate freedom for creative and positive contributions to the organization and
society. In the same light while forging ahead to aggressively tap the packaged food
industry, WaghBakri welcomes talented human resource to share and nurture its success.

At the same time, we are proud to avoid typical large organizations ills like bureaucracy
and high overheads.

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Organisational Chart

Top Management

Production Human Resource Marketing


Finance Department
Department Department Department

Research &
Quality Control
Development

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Production

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Introduction
Production is regarded as the most important economic activity in the present day world
economy. Production is apart of the business activity. Production is the preliminary
objectives of business. From the society point of new products is of most important
because without production it is impossible to satisfy human needs and desires.
Production takes place when something gifted by nature is transported into a useful
product. In other words Production is defined as creation of activity.

Business of every kind has production function in greater or lesser degree. Several types
of company in particular industry have to do with production. Production is creation of
goods and services but the manufacturing mining, farming, fishing of manufacture is the
most direct concern with production manufacturing changes the form utilizing the goods.

Plant location

When the promoters of an industry take a conscious decision regarding the site of the
industry, it is called location of industry. Location has a very great influence on
productivity, efficiency and profitability of the particular industrial unit.

The plant base is at Dholka in a impressive spread of 65000 yards with a modern
Processing plant and state of art blending and packaging unit that conforms to
International norms in processing, blending and packaging of the finest tea for worldwide
consumption

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Product Portfolio

What is Tea (Camellia Sinensis)?


Tea, as you popularly know it, or Camellia Sinensis -- the plant credited with beginning a
million refreshing mornings. Taste is its character. Aroma its identity. Color its
personality. And flavors its ultimate differentiation.

A tea plant is sensitive to its soil and atmosphere. So much so, that its very flavour and
taste could vary within a single estate and from one day to another. Only the discerning
sense of a seasoned tea taster can distinguish what are similar looking tea granules to an
untrained eye.

WaghBakri tea house dates to the 19th century and is one of the oldest hot tea brands in
India. Seth Narandas a pioneer in tea growing, and blending entered tea business in India
in year eighteen ninety two. Since then the tea company has grown four fold and is one of
the largest tea producer and exporter from Indian sub continent. On strength of
entrepreneurship he mastered the art of blending finest organic green tea leaves which
undergo less oxidation and for the warm full bodied flavor, aroma and special taste black
tea. Sir Narandas added wide range of high quality premium teas to buy online of many
fine varieties as oolong, red and white tea for the benefit of tea lovers all over world.
WaghBakri Organic Tea delivers optimum health benefit.

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WaghBakri offers a basket full of brands for different need groups and price
segments.

Good Morning
True to its name, Good Morning is a blend of premium Assam
CTC tea and traces of orthodox tea which is high on taste and
aroma. Its fruity flavour tempts you to reach for another cup.

In keeping with the Group’s high quality standards, the blend is not offered in the market
if good quality tea is not available due to external factors. No wonder, Good Morning
enjoys a strong customer loyalty.

Good Morning has been rated by experts as one of the best blends in the world.

Available in pack sizes of 250 Gms. And 500 grams. Soon to be introduced in 100 Gms.
packs too.

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Wagh Bakri
Our very raisons deter. A legendary brand with extraordinary brand
loyalty built and preserved painstakingly for more than 5 years. It’s
the best selling brand in Western India. Customers are known to
carry along supplies on long and overseas journeys!

A blend of select Assam teas, WaghBakri is


high on strength and instantly refreshes a
person. Consistency of quality through the
years is another feather in our cap. It is
available in Leaf, Dust and Fanning varieties.

WaghBakri (Leaf) with large granules brews a strong and sweet


taste (earning it the sobriquet of ‘Kadak Meethi’). WaghBakri
(Dust) with very fine granules is the strongest variety and is
preferred by institutional segment. It produces largest number
of cups per kg of tea. WaghBakri (Fanning) is a blend cut
between Leaf and Dust. It is strong in taste and bright in color.

Available in pack sizes of 25 grams, 50 grams, 100 grams, 250 grams, 500 gram poly
pouches and 1 kg PET jar. Now also available in 500 Gms. Lined cartons.

Special International Blend

WaghBakri is now available for export markets in special packaging.

Available in PET jars of 1/2 lb., 1 lb., 2 lbs. WaghBakri International tea bags are
available for those who prefer tea bags.

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Tea Bags

Wagh Bakri Masala Chai Tea Bags

An Aromatic Delight with a Difference

now gets more out of your regular cup of tea, with the WaghBakri Masala Chai. A fine
International blend of the rich Assam tea and the spices, WaghBakri Masala Chai, in
every sip, is truly an enticing experience.

The hand plucked leaves are blended with exotic spices, which enhance the flavour of the
tea, and the tea tastes deliciously different.

No wonder then, the refreshing aroma of WaghBakri Masala Chai fills up your senses
like never before, cup after cup.

Good Morning Tea Bags (Assam)

Good Morning Tea Bags make for the 'fast and fashionable' way of
drinking fine tea. The Assam blend is available in a pack of 100 tea bags.
These tea bags have a double chamber for faster infusion of tea, and come
sealed in an envelope to keep the tea fresh and flavourful.

Good Morning Tea Bags (Darjeeling)

Good Morning Tea Bags make for the 'fast and fashionable' way
of drinking fine tea. The Darjeeling blend is available in a pack
of 100 tea bags. These tea bags have a double chamber for faster
infusion of tea, and come sealed in an envelope to keep the tea
fresh and flavourful.

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Wagh Bakri Tea Quik Tea Bags

Tea bags are convenient and hygienic where the normal


elaborate preparation is not feasible. Tea Quik tea bags
from WaghBakri was one of the first ones to enter the Tea
Bag segment. Tea Quik is especially favoured as it creates
a cuppa that is very close to the normally brewed tea.
Moreover, the advanced imported production facility of Tea
Quik produces tea bags free from staple pins.

Available in packs of 25 & 100 tea bags.

Milli
Mili is an ideal brand for those who otherwise prefer
loose tea. Mili offers good taste & strength with
consistent quality and hygienic packaging along
with great pricing value. Mili is a blend of good
Assam teas and comes in Leaf and Dust form. It
comes in an attractive bandhani pack design.

Available in 1Kg Pack and Pet jars of 500 Gms and


250 Gms.

Plant operation

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The company produces product range from 1rs. 4gm. packs to 5 kg packs.

It produces on an average 6 lacs packs daily

In 1 single month the company packs 2.5 crores tea packs of various range

Mainly all the machines in the factory are hi-tech excluding few hand operated
machinery.

About 8 lacs packs of tea in raw materials form is stored in company’s go down.

Quality Control

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In the absence of quality control many products may be found defective and worthless at
the end of manufacturing process and may be thrown away as scrap. Quality control
avoided such a situation and saves the cost of labour and materials involved in the
production of defective products. Similarly, it also saves the loss which will arise out of
re-working on the rejected products

It ensures the maintenance of high standards of quality and helps the concern using it to
build their goodwill.

It reduces the expenses of inspection considerably and enables the products to be


produced economically.

If certain products are not up to the desired standard of quality, they may have to be
downgraded and sold cheaper. It maintains the standard of quality and thus enables the
producer to secure the standard price for all products.

Art of Tea Tasting

Tasting is a refined art which encompasses a large number of variables. A taster’s palate
and olfactory senses are finely sensitive and highly discriminatory.

An experienced taster can identify the garden, ambient conditions of the plucking day and
can even suggest adjustments in the manufacturing process. A taster uses his sharp sense
of sight, smell, touch and taste while judging the quality of the tea.

A taster must also have an in-depth knowledge about the prevailing market conditions,
consumer preferences and manufacturing techniques while evaluating the tea. These are
endowments of birth - it would be true to say that tasters are born and not made. These
natural talents, however, have to be trained and developed through long years of practice
before the palate is proficient enough to register the minute differences.

Distinguishing between qualities of teas is possible by the human palate only - no wonder
this craft is viewed with a tinge of awe and wonder. The art of tea tasting is valued much
at WaghBakri Group.

The Tasting Procedure

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In the tasting procedure, pots and cups made of the finest china, kept spotlessly clean, are
used; 2.5 gm of each tea is weighed into pots and water which has just come to the boil is
poured over it. The pots are then covered with a lid and the tea is infused for either 5 or 6
minutes, depending on the individual taster’s preference. The liquor is poured out into a
cup and the tea is ready for tasting.

The colour and evenness of the infusion, as also its nose, are an index to the intrinsic
value of the brew. This examination takes place in a well lit room away from direct
sunlight, shade and shadow. Light from the north, which is steady and uniform, is ideal.

The scrutiny of the leaf and infusion over, the taster turns his attention to the liquor and
takes a sip from the cup, rolls it in his mouth and spits it out. In that split second, the
palate registers the taste - Flavors, Briskness, Strength and any faults and flaws are
recorded and the taster is ready with his judgment.

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Marketing

Introduction

20
After the industrial revolution marketing has become an important tool for all the
organizations.
According to Philip Kotler & Gary & Armstrong, “Marketing means the social and
managerial process by which individual group obtain without they need and want through
creating and exchanging production and value with others”.
According to Mr. Henry H. Henson, “Marketing is the process of discovering and
translating consumers need and want into products and service specification, creating
demand for this product and services and then in taken expanding this demand”.

Defination:

A social and managerial group obtains what they need and want through creating and
exchanging products and value with others

Market:

The set of all actual and potential buyers of a product or service. These buyers share a
particular need or want that can be satisfied through exchanges and relationships
(transactions). The size of a market depends on the number of people who exhibit the
need, have resources to engage in exchange, and are willing to offer this resource sin
exchange for what they want.

4 P’s of Marketing:-

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Although some marketers have added other P’s such as personnel and packaging, the
fundamental dogma of marketing typically identifies the four P’s of the marketing mix as
referring to:

Product:
An object or a service that is mass produced or manufactured on a large scale with a
specific volume or units. A typical example of a mass produced service is the hotel
industry. A less obvious but ubiquitous mass produced service is a computer operating
system. Typical examples of a mass produced objects are the motor car and the
disposable razor.

Price:

The price is the amount a customer pays for a product. It is determined by number of
factors including market share, competition, material costs, product identity and the
customer’s perceived value of the product. The business may increase or decrease the
product if other stores have the same product.

Place:
Place represents the location where a product can be purchase. It is often referred as the
distribution channel. It can include any physical store as well as virtual stores on internet.

Promotion:

Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: Advertising, Public relations, Word of
mouth and Point of sale. A certain amount of crossover occurs when promotion uses the
four principle elements together, which is common in the film promotion.

Advertising covers any communication that is paid for, from television and cinema
commercials, radio and internet adverts through print media and billboards. One of the
most notable means of promotion today is the promotional product, as in useful items
distributed to targeted audiences with no obligations attached. This category has growth
each year for the past decade while most other forms have suffered. It is only form of
advertising that target all five senses and has the recipient thanking the giver.

Public relations are where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.

Word mouth is any apparently informal communication about the product by ordinary
individuals, satisfied customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and public
relations.

Target customers:
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Mainly the tea packs are for domestic consumption which are supplied to various region
of India

Place: Distribution Network:

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Most producers use intermediaries to bring their product to market. Then try to forget
distribution channel.

A set of independent organization involved in the process of making a product or


service available for use or consumption by the consumer or business user.

Distribution network facilitates to reach customer throughout the country by a strong


chain of distribution outlets.

Company distributes through hyper market, super market, grocery stores, hotel &
restaurants.

Promotion and advertising campaign:


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Promotion and advertisings is mainly done through electronic media like TV, radio etc.
and print media like news papers.

Competitors:

The main competitors of Wagh Bakri are Tata and HUL.

Exports:
Wagh bakri exports tea to countries like North America, USA, Canada, The Middle East
countries, West Africa

Next face target export countries are Germany, France and Ireland.

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Finance

Definition:

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"In a modern, money using economy, finance may be defined as the
provision of money at the time it is wanted".

Meaning:
Financial management is concerned with:

 A raising of funds on as favorable terms as possible and


 The efficient allocation of funds within the enterprise.

 So financial management is concerned mainly with such a matter as, how a


business co-operation, rises its finance and how it makes use of it.

 Since finance is a life-blood of any business, its management merits special


attention. The first aspect to be attended to is the estimation of how much a
business organization requires and for what purposes. Unless the financial
forecast can be prepared on sound basis the business is likely to run into
difficulties arising from insufficiency or excess of capital fund.

 It will have to ensure that the business goes on smoothly and without any
interruption and the company remains not only solvent as a going concern but it
also able to grow on its own resources generated through surpluses. There must be
constant flow of funds in and out of business unit. A business firm requires
finance to commence its operation, to continue operating and for expansion.
Financial management is concerned with planning, organizing, directing and
control the financial activities of the firm.

Sources of finance:

The company mainly manages its financial needs by retaining profits

Wagh bakri is having the growth rate of 11.6% where as the overall growth rate of
industry is 6 to 7%

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Personnel

Human Resource Management:-

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Defination:

 These are the few definitions of human resource management. Which cover all the
5 points given below:
 HRM is a series of integrated decisions that from the employment relationship, their
quality contributes to the ability of organization and the employees to achieve their
objectives.
 HRM is concerned with the people dimension in management. Since every
organization is made up of people, acquiring their services, developing their skills,
motivating them to higher level of performance and ensuring that they continue to
the organization are essential to achieving organizational objectives.
 This is true, regarding of organization-government, business, education, health,
recreation or social action.
 HRM is the planning , organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance and separation of human
resources to the end of that individual organizational and social objectives are
accomplished.

Meaning:

 Simply put, Human Resources Management is a management function that


helps manager recruit, select, train and develops members for an organization.
 The various points, which are found in herm, are as follows:
 Organizations are not mere bricks, mortars, machineries or inventories. They are
people it is the people who staff and manage organizations.

 HRM involves the application of management functions and principles.

 The function and principles are applied to acquisitioning, developing,


marinating and remunerating employees in organization.

Strength of personnel department:

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The company has an employee strength of 350 who results in a turnover of 250 crores.

Recruitment policy:

According to Flippo, “Recruitment is the process of searching for prospective employees


and stimulating them to apply for jobs in the organization”

As Yoder has said. “Recruitment is a process to discover the sources of manpower to


meet the requirements of the staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate effective selection of an
efficient work force”

The company recruits people according to their needs from available sources.

Training and Developments:

According to Michael J. Juius, “The term training is used here to indicate any process by
which the aptitudes, skill and abilities of employees to perform specific job are
increased”.

The unit takes various types of labour welfare activities.

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Swot Analysis

Strength:
• The company has an advantage of its marketing research.

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• The company has the quality consistency in their products and they are
very keen about the quality of their product.
• The company has a variety of quality product according to the taste of
consumers.
• The company has a great advantage of their goodwill in the market.

Weaknesses:

• Though the company has third position in the market, yet they have not
captured the all over world market.
• One of the weaknesses of the company is ‘oolong tea’, it is mainly
exported but it is not sold in domestic market even if may captured a good
market share.
• It is tuff to sell tea in those regions were mainly people are non-tea
drinkers.

Opportunities:

• The company has good opportunities to grow in the market by introducing


more variety of products according to preferred tastes of consumers.

Threats:

• The company faces competitions by HUL who has 10% growth in market.
• The company faces severe competion with regional players in some
regions.

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Awards and achievements

Serving the taste of trust. An idea that's integral to that everything to form part of
continuous development at Wagh Bakri. The chant to excel is the only constant in our
mission philosophy and what propels our vision. As we keep pace with the rapid strides

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of changing times, the pursuit only fosters as we imbibe every contemporary inspiration
to nurture the pedigree that's build on faith.

Presented herewith are some of the coveted quality certifications that hold testimony to
Wagh Bakri quality commitment and bespeak the excellence the name reverberates in
millions of hearts every morning.

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Bibliography

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Books referred to:
 Principles of marketing by Philip Kotler,9th edition, published by Prentice Hall
of India Pvt. ltd., year of publishing-1992

 Financial management by Khan and Jain, 2nd edition, published by TATA


MCGRAW Hill, year of publishing-1992

 Production and operational management by Ashawathappa and Bhatt, 1st


edition, published by Himalaya publishing house, year of publishing-1999.

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Sources of Information:

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