An Industrial Visit Report On Havmor Ice-cream Submitted to: - B.W.T.Institute of Business Administration H.K College Campus Ahmedabad.
Submitted By Kavita Rampuria Roll No: 1101
Being a BBA student industrial visit forms an essential part of our course. As management is a science and is universally applicable, it is in all organized efforts be it a business activity or any other activity. For achieving perfection in the field of management, one must have both theoretical and practical knowledge. We can acquire theoretical knowledge from books but practical knowledge can be acquired only through such industrial visits. This visit has been useful in the sense it has developed our skills in interpreting and analyzing various functions such as marketing, production, human resource and finance. This report is the part of the practical study and gives immense knowledge about the working of Havmor Icecream.
First of all I would like to thank the Almighty God for his everlasting grace and mercy that guided me throughout my project work. The materialization of the ideas and views of this project have seen valuable contribution of numerous friends and academicians in the form of selfless criticism, well wishers and above all, words of inspiration. The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without the mention of certain individuals who have been of constant help, guidance and encouragement in the making of this project a reality. I sincerely and respectfully thank Mr.Bhaumik Nayak and Ms.Aunkita Pandey for their constant guidance throughout the course of the project. I also express my sincere thanks to my friends for their encouragement and support throughout my project. I put forth my respects and regards to my parents, whose presence steered me through, to the end. Their blessings and moral support were of great inspiration, enabling us to overcome the greatest odds with greatest ease.
1 1.8 2.6 2 2.4
TABLE OF CONTENTS CH.4 1.7 2.5 1.2 1.9 2.NO I II
7 7 8 10 11 12 13 15 16 17 18 20 20 21 22 24 24 25 25 25
PARTICULARS PREFACE ACKNOWLEDGEMENT
INTRODUCTION TO ORGANIZATION INTRODUCTION TO HAVMOR COMPANY PROFILE HISTORY MISSION FUTURE PLANS ORGANIZATIONAL STRUCTURE PRODUCTION MANAGEMENT MAIN PRODUCTS OF THE COMPANY RAW MATERIALS USED PRODUCTION PROCESS LOCATION OF THE UNIT TIME KEEPING SYSTEM INNOVATIONS PRODUCTION DETAILS STORES MANAGEMENT PLANT LAYOUT PROCESS LAYOUT PRODUCT LAYOUT FIXED POSITION LAYOUT
PG.4 2.2 2.5 2.9.1 2.1 2.3 2.3 1.9.6 2.2 2.3
9 3.3 3.1.7 18.104.22.168 3.6 3.1 3.1 3.8 3.2 3.11 4 4. DEMOTION AND TRANSFER POLICY PROMOTION DEMOTION TRANSFER GREIVANCES HANDLING PROCEDURE PERFORMANCE APPRAISAL PERSONAL RECORDS WAGES AND SALARY ADMINISTRATION TOTAL NUMBER OF EMPLOYEES PROVIDENT FUND SCHEME EMPLOYEES BENEFITS AND SERVICES TRADE UNION MARKETING MANAGEMENT PRODUCT PLANNING BRANDNAME ANG LOGO MARKETING RESEARCH MARKET SEGMENTATION
27 28 28 28 29 30 30 30 31 31 31 31 32 32 33 33 34 34 34 35 37 39 39 40 40
RESPONSIBILITY AND AUTHORITY OF INDIVIDUAL 38
.10 3.4 3.1 22.214.171.124 3.3.5
3 3.5 3.1 3. SELECTION AND INDUCTION RECRUITMENT SELECTION INDUCTION TRAINING AND DEVELOPMENT TRAINING DEVELOPMENT PROMOTION.2 3.3 4.2 4.2.3 3.2 3.4 4.1 3.1.5
PERSONNEL MANAGEMENT RECRUITMENT.
7 4.2 6.6 6 6.4.6
4.4 6.2 6.5.3 6.7.4 5.3 4.2 5.8 5 5.5.2 4.1 6.1 4.1 5.7.6 4.3 7 8
BASIS OF FLAVOURS BASIS OF PACKAGING BASIS OF CONSUMER SEGMENT DISTRIBUTION CHANNEL PHYSICAL DISTRIBUTION WAREHOUSING INVENTORY ORDER PROCESSING PACKAGING AND TRANSPORTATION SALES DEPARTMENT SALES ORGANIZATION SALES BUDGET PRICING POLICY CHANNEL OF DISTRIBUTION ADVERTISING SALES PROMOTION FINANCE MANAGEMENT FINANCIAL REVIEW ORGANISATIONAL STRUCTURE FINANCIAL PLANNING CAPITALISATION CAPITAL STRUCTURE DEPRICIATION POLICY MANAGEMENT OF WORKING CAPITAL SWOT ANALYSIS CONCLUSION BIBLIOGRAPHY
41 41 41 42 43 44 44 44 45 47 48 48 49 49 50 51 53 54 54 54 55 56 57 58 60 62 64
.4.3 4.5.3 5.1 6.4.5 5.7.2 4.1 4.
But that’s no surprise considering that the group has the largest range of ice creams in the Gujarat in a variety of flavors. has its humble beginning since 1944. Havmor has 50% of the Gujarat ice cream market. packs and forms. The “Havmor” philosophy of providing its customers with the best quality products and services at affordable prices has resulted in the brand being a household name in Gujarat.1 INTRODUCTION TO HAVMOR
Havmor literally meaning H-A-V-E-M-O-R-E. they also run RESTAURANTS and FAST FOOD PALOURS. candies.7
CHAPTER-1 INTRODUCTION TO ORGANISATION 1. when its founders started manufacturing ice cream with a hand-cranked machine. family and party bricks and bulk packs. one of the best names for food business was coined by Late Shri Satish Chandra Chona in 1944. The group has a product matrix comprising of cones. cups. Havmor Group of Co. Havmor introduced the concept of “flavor of the month” under which the company develops and markets one new flavor every month for its customer’s delight.
. HAVMOR is a privately owned company manufacturing varieties of ICE CREAMS. and they also deal with CATERING.
: 2nd Floor. Navrangpura. Naroda Road. B/h. B/h. Factory Address : Modern Industrial Estate. ft.havmor.
No.2 COMPANY PROFILE
Havmor Group of Co.com : ICE-CREAMS
: 5000 sq. Naroda Station. Ahmedabad-380 009
: 91 – 79-2657 5100 : Kamal@havmor. Popular House.com
Website Main Product Land area of factory
: www. Kashmira Chambers. Ahmedabad-380 025 Fax E-mail : 91 – 079 – 2220 3890 : Dhiren@havmor. of employees : 420 8
Dhiren Shah : Mr. S. Urvi : Mr. Pramo : Mr. Pradeep Chona : Mr. Mukesh : Corporation Bank
.Assistance Vice President (HR) Marketing Dept Auditors Bankers
: Mr. Anand khanonkar
Stores Management H.R. Shetty : Mr. Kamal Desai : Mr.manager Purchase manager Finance & Account manager Quality Control : Mr. Ajay Mistry : Mr. Vatsal Parekh : Mr. Sanjay & Miss.k. Rajesh Shah : Mr.9
Managing director of the Company President Assistant G. Tejas & Mr.
settled down in Ahmedabad. wins over the situation sooner or later. he tried out Dehra Dun and Indore. By 1947. from his Ice Creams. or anything else as fanciful. churning out the Ice Cream manually. its founder Satish Chona had to join the exodus into India. Big Vision.3 HISTORY
Small Beginning. Great Ambitions Havmor Ice Cream began its branded life in 1944 in Karachi. like good character.
. and more taste to relish.a neologism for ‘Have More’ .which meant the customer. and part of its market lore. Today. in undivided India. but he had laid the foundation for one of Western India’s most enduring market legends and good quality. No. But in 1947.10
1. He called this fledgling brand ‘Havmor’ . Havmor Ice Cream is a delicious facet of Western India’s daily life. got more value for money. It reaches hundreds of thousands of consumers through 8 main outlets and 3800 plus dealers. it was a popular local brand there. Searching for a new turf. He had to start the venture from scratch again. it was not a case of “Brand Relocation”. In fact. with virtually no moveable assets. he had to begin from a hand-cart at the Ahmedabad Railway Station. and finally. in the wake of the Partition. Perhaps he didn’t know it then.
SACHCHAI. The Company keeps formulating new tastes at frequent intervals and surprising its consumers. Clean” enterprising ethos. The whole manufacturing process conforms to global standard of hygiene. Truthful.11
1. SAFAI (Goodness. and Cleanliness) The succeeding generation at the help of company translated this axiom into a way of life and business only the finest ingredients go into making of Havmor ice-creams. Satish Chona. Today decides later Satish Chonn simple philosophy still continues to be the corporate axiom of the Havmor conglomerate. and the company values its entrepreneurial self esteem.4 MISSION
“Good. and the company’s trade practices are kept totally transparent. market image and reputation for financial up rightness above its pure business interests. the founder of Havmor began his enterprise half a century ago with a sample guideline ACHAI. It has also diversified into other food items through a high profile restaurant chain. Truthfulness.
. Base on new generation technology and in house.
6 ORGANISATIONAL STRUCTURE
1. The selection of media and communication strategy was done with an objective of achieving the broad objective growth by growing the market.
1. where in the priority was on passing more and more benefits to ultimate consumers. The overall broad strategy of increasing the consumption was supported by appropriate promotion and market support. All the benefits accruing out of economies of scale were passed to consumers in the form of value for money offers like “Buy one get one free”.5 FUTURE PLANS
Havmor is adopting a consumer oriented strategy as far as the price factor is concerned.
MANAGING DIRECTOR FACTORY MANAGER PURCHASE MANAGER
as the main function of Havmor is to produce the products and supply to the consumers according to their needs and taste. advertisement. personal selling.
. publicity and all other activities relating to distribution. Production refers to a process of fabrication of a product or a physical object through there are men. Capital and Labor organization and entrepreneurship are the factors of production. Land. material. capital and entrepreneurship for the satisfaction of human wants.15
CHAPTER-2 PRODUCTION MANAGEMENT
Production is the process of transferring components into finished products for sales. in Havmor production department is the most important department. sales promotion. It includes manufacturing process also by which raw materials are transferred into finished goods for final consumption. where as making include market research. Production department is the heart of Havmor Unit. The term production is wide in scope. Thus.
.1 MAIN PRODUCTS OF THE COMPANY
Ice creams found in different styles like: King Cones Big Cups Small Cups Party Pack Family Pack Juices Candy Dolly Kulfi Corner Roll cut Novelties Cassata Premium Pack Kids Special Havmor Special.
Major Raw Materials used for making Ice Cream are: Milk Cream Skim milk powder Dry fruits Fresh fruits Flavours Sugar Stalulizer Emulsifiers agents Chocolates All the materials used in process are managed by Storage Department.
.2 RAW MATERIAL USED
There are various types of raw materials that are used in Havmor during Ice Cream making process. And their quality is checked by Research and Development Department.17
The mix is stored here is called the basic mix and is used for all ice creams. candies.3 PRODUCTION PROCESS
PASTEURIZATION TANK:Here the raw materials like milk. Here. Milk is pasteurized here. Here the breakdown of the fact glucose is done up to micron size. and pasteurization is done at 75°C. etc are mixed. the chilling of the mix is done from 75°C to 24°c. The basic mix is taken to each section for different types of Ice Creams. the mix is stored in this tank.
CHILLER:In the chiller. the mix is transferred to this tank.18
2. Butter is melted at 40°C. The Homogenator tank is the heart of the process. powder. Mixing of Pasteurizers is done at 8-10°C. cream. this mix is kept under the pressure of 50 cem square. whether it is cup. This increases the viscosity of the mix.
STORAGE TANK:After being thoroughly mixed. etc. Sweetening agent is added at 65°C.
HOMOGENATOR:After being pasteurized at 75°C.
. All ingredients at 55°C. The mix is kept at 75°C for 15 mins and then filtration of mix is done. cones.
Senttice the whole equipment with hardaphire solution of 200 ppm for 20 mins.
COLD STORAGE:After achieving ITC in hardening tunnel. 19
. ice cream is transferred in to cold storage and taken as per the market demand.
FLAVOURING TANK:Required quality of basic mix is transferred in Flavouring tank additions of essence and Flavouring Color is done as per the recipes of particular ice cream. the ice cream will come out within 25 seconds at the temperature of 8°C to -5°C.
Cleaning with hot water at 10°C for 10 to 15 mins. the ice cream is picked into different boxes. cups. This process is done manually.
Flushing with hot water.
HARDENING TUNNEL:These packets are kept in hardening tunnel to achieve ITC.19
The general process of cleaning is as follows: Flushing with tap water. After coming out from continuous. etc.
CONTINUOUS FREEZER:After starting the continuous freezer. Alkali cleaner for 20 mins at 10°C. If the recipes includes additions of nuts it is done through fruit feeder which is outside the continuous freezer and before the final place of coming out of the ice cream and in case of Sunday’s different flavor is added through nozzles through which more than two flavors can be added.
Man power. Machinery.4 LOCATION OF THE UNIT
The location of plant or industry means to scientific choice of a region or specific sight in a region where the business unit is to situate.30 TO 6.
2. Motive power.30
. Money.5 TIME KEEPING SYSTEM
Time keeping system for industrial staff Shift 1st shift 2nd shift 3rd shift ~ ~ ~ Timings 8 AM TO 4 PM 4 PM TO 12 Mid Night 12 Mid Night to 7 AM
Working Hours for office staff: 9. Momentum to an early start
2. The objectives are realized only if the firm is located at a place which offers all economies of production and distribution. Management 4. Means of Communication 5. Market 3. * Factor responsible for plant location are: 1. The main object of an industry concern is to maximize profit through minimization of production and distribution cost. Material 2.20 Yummy Ice Cream is now ready to dispatch.
and that too from vendors whose quality often left a lot to be desired. and not what we want him to like?”
. Sitafal. they have often gone in for unconventional and creative packaging.6 INNOVATIONS
Quality is undoubtedly very important to establish and retain one’s status in a competitive environment. To please them. Ice creams in the intact skins of their fruits.21
2. Sweet Lime. But equally important is innovation – constantly coming up with something new to maintain an edge over the competition. They even introduced the Sorbet – a fruit juice based frozen dessert. Like the time when we filled Mango. natural goodness of milk. Most of our innovations have been based on the consumer feedback we have received from our ardent fans. which has been an on-going event over the years.e. “Give the consumer what he likes and wants. fruit and nuts. no preservatives. no synthetic Colors or flavour. Orange. To match their unique products. They launched many dry fruits based ice creams. creativity is at the forefront of our activities. Nothing but the pure. which otherwise had to be bought just prior to consumption. It was a big hit at social gatherings and special occasions. Here is a representative sample of a few of their innovations: They are the first ones to introduce Dairy Fresh – an all natural ice cream which contains no additives. Hence. People eagerly await our flavor of the quarter. an assortment of traditional Indian ice cream form. All their innovations are based on a single guiding principle i. to date we have launched over 200 flavors in 600 pack-types and forms.
3) RAW MATERIAL UNIT:
In this unit all the raw material. dry fruits like kaju.
1) MAINTENANCE UNIT:
This is the main unit of the company. in the sections one by one steps about the procedure of product can be seen the details about the sections are as follows. chocolates etc. Which can satisfies human needs by processing it through manpower or machine. such as milk powder. weight and prospects of the raw materials through process. size. 22
. This unit also contains the boilers. The actual processes of making ice-cream starts and after ice-cream are manufacture and they are to the cold storage.
2) MANUFACTURING UNIT:
In this plant all the required raw material are mixed and then it is processed the raw material goes through many Thom formations before it becomes the final product. There are several sections in the unit. it has to be switched on to keep the product fresh and cold. There are generators also because in case of a power failure.22
2. In short the creation of an object or services making necessary changes in the shape. are thoroughly inspected and checked and coasted in oven before sending it for flavoring on essentially.7 PRODUCTION DETAILS
Production means to convert the resources or wealth obtained from nature in to production. The heavy machines are installed here the unit 3 compressor which help in codling the ice-creams.
The laboratory of Havmor takes care of hygiene of the products each and every product is checked and certified over here before being launched. 7) PACKAGING UNIT: In this section the packaging of the product are done. The treatment is very much necessary because of the government policy that the chemical before disposing.
5) ETP UNIT:
ETP means effluent treatment plant there all the waste water is treated thoroughly and disposed off. Besides it is the store room where the packets are and used where necessary. At most each taken on aspect of quality.23
4) COLD STORAGE UNIT:
The prepared ice-cream comes to the cold storage through a tunnel pipe. the temperature in cold storage is between -25c to -27c ice-cream is taken out of this unit as per the order. The manufacturing date and best before information are labeled over here. The whole process is automatic.
9 PLANT LAYOUT
Layout problems are fundamental to every type of organization and are experienced in all kind of marketing.8 STORES MANAGEMENT
Stores management is necessary for any scale of unit because whenever the need arise it could be provided by the store department. research and development department are required to inform to the storage department whenever the need arises and on this basis purchase requisition is made and given to purchase department. Process layout or layout by function 2. not only the departments within the factory but also the plant. next important problem before the management is to plan suitable layout for the plant.
2. “Layout identically involves the allocation of space and arrangement of equipments in such a manner that overall operating cost is minimized. retailer must arrange their facilities.
2. Housewife must arrange her kitchen.9. Fixed position layout. There is a separation for storage in Havmor. Once a decision about location of a plant has been taken.” • There are mainly 3 types of layout… 1. stores and services so as to achieve flow of products. According to James Handy. The departments like production. Efficiency and performance of good machines and sturdy buildings depend to a great extent on the layout of the plant.24
2. Product layout or line production 3.1 PROCESS LAYOUT :
This is typical job-shop type of production. grinding machine is located in any are. but the machinery tools. All operations of similar nature & grouped together in the same department or part of the factory. etc..9. E.2 PRODUCT LAYOUT:
The equipment here is laid out according to the sequence in which it’s used for making the product for this type of layout if two products are tobe made is called for two separate layouts. In this layout more emphasis is given to specialization or functional homogeneity on the various components of the system.9.
. where the equipment performing similar operation is grouped together.3 FIXED POSITION LAYOUT:
In this layout. are brought to the machines. workmen.
2. the material remains in a fixed position.
3. HRD plays a major role in conducting specialized training programs. such management is concerned with leadership in both groups and “individual relationship” and “personnel management. Whatever functions are listed therein. and it is they who will take them for beyond the horizon.1 RECRUITMENT. They believe that their plants are most valuable assets who have made Havmor what it is today. personnel management undertakes all those activities. development and utilizations of human resources in employment.” It effectively describes the process of planning and directing the applicants. a group to achieve its goals economically. SELECTION & INDUCTION
As the term applies. the days to come. effectively and speedily. encouraging innovative ideas. inoculating willingness to accept change and rewarding out this with an incentive package. According to Havmor. the main objectives of these functions are to bring together expertise in a scientific way and to create that motive. which are concerned with human elements in an organization. personnel management is the management of human resources in an organization and is concerned with the creation of harmonious working relationships among its participants and bringing about this utmost individual development.
1. It is very important function even for the establishment and development of business. Interview. is done as under… * * * Preliminary Interview.1. For recruitment of skilled workers. Application.
3. It is the primary duty of the personnel department to procure and maintain the adequate qualified working force of various personnel necessary for running the organization.
Recruitment refers to attempt of getting interested applicants and providing a pool of prospective employees so that we can select right person for right job. In Havmor the recruitment sources can be classified into two broad categories. advertisement is given in newspapers and unskilled workers are recruited from local areas.2 SELECTION:
Selection is the process in which candidates for employment are divided into two classes – those who are to be offered employment and those who are not.28
The recruitment & selection process is intimately connected with overall manpower system. 28
The selection process of Havmor Co.
.2 TRAINING & DEVELOPMENT
3. Induction is a technique by which a new employee is rehabilitated into the changed surroundings and introduced the practicing policies and purpose of organization. * Educational and technical qualifications * * * * * Intelligence Responsibility involved and initiative required Ability to command.
Induction refers to the job and organization. Induction of employee is done by every department for every week after selecting of 2 to 3 days. Following are the broad headings under which the qualities desirable for a suitable candidate may be grouped.29 * Final Selection. The purpose is to make the employees feel at home and develop a sense of pride in the organization and commitment to the job.1. to obey Health and physique Ability to work in the conditions in which the job is performed.
HR coordinates the training. Sometimes staff is send outside the company for training purpose or experts are called up to give training to the employees.3.
Development is an organized and planned process and program of training and growth by which individual manager or executive at each level of management hierarchy gains and applies knowledge. etc. Many workers don’t know to use them. Generally. more prestige or status.30 Training is the organized procedure by which people learn knowledge or skill for a definite purpose.1 PROMOTION:
Promotion is the advancement of an employee to better job – better in terms of responsibility. greater skill.2. So. training for 7 days is given to workers. In this modern era. training is very important. higher grade & salary and increased privileges. 30
. they teach them how to use machineries. Company also gives training to their workers according to the job.
3.3 PROMOTION DEMOTION & TRANSFER POLICY
3. In Havmor Group of Co. skills. there is also modern type of machines which follows modern technology. In Havmor Ice-creams. insight and attitudes to manage workers and the organizations effectively.
salary & responsibility of an employee. Top level management gives promotion. responsibility and pay. does transfer to their employee.
3. dissatisfaction to any staff or filling of discontent. In other words. A dissatisfaction which is orally made known as complaint becomes a grievance when this dissatisfaction.3. Employees are transferred from one shift to another shift. also gives promotion on the basis of all over performance basis. personnel experts however. demotion refers to the lowering down of the status.3. Generally speaking. Havmor Co. gives demotion when any employee is not able to do his work by any reason. A complain by an employee and claiming unfair treatment. have attempted to distinguish dissatisfaction. 31
. as per the requirement.31
Havmor Co. Havmor Co.
3. whether it is unexpressed or explicitly expressed. complaint and grievances.2 DEMOTION:
Demotion has been define as the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility. which is usually related to work is brought to the notice of management. Company also considers merit basis and seniority basis.4 GRIEVANCES HANDLING PROCEDURE
Grievance is difficult to define.3 TRANSFER:
Transfer refers to changes in jobs that involve little or no change in status.
In all the companies grievances always exist irrespective of size and unit. The grievances may be real or imaginary valid or invalid. In Havmor. Performance Appraisal is a systematic evaluation of the individuals with regard to his/her performances on the job and his potential for development.
3.6 PERSONNEL RECORDS
A Personnel record is piece of writing in a chart or which provides ready information and which preserve evidence for future reference or use. the employees meet first to the supervisor and if not solved then employees meet to the concerning department head and management tries to solve the grievance by considering the acceptable demand of the employees and the workers also keep themselves ready to achieve the targets disclaimed by the management. In Havmor. there is any grievance.5 PERFORMANCE APPRAISAL
In the organization context performance appraisal is a systematic evaluation of performance by supervisors or other familiar with their performance. Motivation to workers done once in 2 months. It is also described as merit rating in which one individual is ranked or market in comparison to others. the performance appraisal is done by the superior or superior will fill the form. 32
. there is specific grievance handling procedure.
3. it is done once in a year and accordingly increase in salary is given. Whenever. In some employee have complaints against employees.
gives wage and salary to the workers according to their work and ability. provident fund. etc.33
Havmor Co. equitable and fair manner. motivation and rewards. 2400 per month. Salary to the clerical. In Havmor.8 TOTAL NUMBER OF EMPLOYEES
• • •
The company has total staff strength of 420. The information like wages. pension.7 WAGES & SALARY ADMINISTRATION
Wage and salary administration is necessarily the application of a systematic approach to the problem of ensuring that the employees are paid in a logical. Its basic purpose is to maintain and establish wage and salary structure. The company keeps one file for each employee. blood group.
3.’s style of keeping personnel record is very scientific and systematic. 33
. discipline. administrative and professional employees is paid on the 1st of every month. Havmor Co. salary. The average eages provided to labor is Rs. behavior of employee in the company. qualifications. till now there is no child labor. Sometimes. company gives wages on the basis of contract to the workers. In this file. Its secondary objective is to establish equitable labor cost structure. training & development. In this company.
3. you can get each & every information about employee. It is concerned with financial aspects of needs. recruitment & selection. are noted in this file. birth date. wages and salary are given monthly to the workers. Which includes 200 unskilled workers and 220 skilled? The company recognizes the important role that its employees used to play the growth of various business activities. past experience.
33% is pension and 3.
. company provides provident fund to its employees. In Havmor following benefits are provided to the employees: Uniform. Social Welfare. Canteen Facility. It affect instantly to financial condition to each and every employee. ESI Scheme. PF @ 12% is given to employees in that 8.9 PROVIDENT FUND SCHEME
The Provident Fund Act was passed in 1952. Safety Facility. Medical Facility. The scheme covers each and every employee of the company.” The Provident Fund Act 1952 was amended in 1971 to provide for the benefit of family pension to the members of deceased in case of their death.
Employees are also provided previous leave. In Havmor Group. It makes bright future for employees.
3. while in service.34
3. which are given to the employees more than the salary comes under employee’s services scheme. etc.67% is PF. casual leave.10 EMPLOYEES BENEFITS & SERVICES
The services or benefits. Employees in Havmor are also provided the benefits like PF. and sick leave. A special reserve fund was made for making the payment to out going members.
3.35 Safety facility is provided to workers as in food items utmost safety is required and medical check up to the workers is also done as and when required. whether temporary or permanent. and includes the formation of two or more trade unions. In Havmor. primary for the purpose of regulating the relations between workers and workers. There are various explanations about the place and role of unions. It generally deals in collective bargaining for doing negotiations. 1920. Now.” – Section 2 (B) of Trade Union Act. “A track union is any combination of persons.11 TRADE UNION
The scenario of exploitation of employees by employers led to the birth of unions and introduced the ear of government regulation and control over employment relationship. and for imposing restrictive conditions on the conduct of any trade or business.
. the relation of industry with trade union is good. These points to a commonalty through union seek to pursue and further the interests of employees as a collectively. unions are a part of modern industrial societies.
offering and exchanging products or value with others.”
. “Marketing management is the process of planning and executing the conception. promotion and distribution of ideas. and then in turn Expanding the market even in the face of keen competition. Serving the consumers demand with the help of marketing channels.37
CHAPTER-4 MARKETING DEPARTMENT
Marketing is so basic that it cannot be considered a separate function. * Marketing is a total system of business. an on going process of: Discovering and translating consumer needs and desires in to products and services. Marketing has been defined in various ways. goods and services to create exchanges that satisfy individual and organizational goals. pricing. The definition that serves are purpose by which individuals and groups obtain what they need and want through creating. Creating demand for these products and services.
Give the promotional tools to the Dealers & Distributors. Assisting in designing of Promotional Programs. Maintaining relationship with Distributors and C&F Agents. Designing Sales Promotional Programs.
RESPONSIBILITIES & AUTHORITY OF SENIOR SALES MANAGER
* * * * * Generate Sales. Handling Dealer / Distributor Complaints.
RESPONSIBILITIES & AUTHORITY OF SALES EXECUTIVES & SALES COORDINATORS
* * * * * Appointing Distributors / Dealers. Assigning targets. Advertising and Media. Recruitment. 38
. Product Management. Recruitment and Selection at higher Authority Level.1 RESPONSIBILITY FUNCTIONS & AUTHORITY OF INDIVIDUALS AT DIFFERENT HIERARCHY LEVELS
GENERAL MANAGER’S RESPONSIBILITY & AUTHORITY
* * * * * Sales Administration. Provide Machines. Dealer / Distributor Communication.38
Product planning for promotions.2 PRODUCT PLANNING
Planning is to decide in present.
. Final label of product. what to do in future? Havmor Co.39
4. Product management department approves a new product. Quality control department check the product quality. also develops new products and steps of product development are as under… Research for a new product sometimes is based on seasons & market demand. Commercialization of new product. Planning of product before 3-4 months in advance.
Developing the research plan. Havmor Company does marketing research through his sales staff. analysis and reporting of data and finding relevant to a scientific marketing situation facing the competition. Collecting the information. Process and marketing research followed in Havmor. design.4 MARKETING RESEARCH
Marketing research is the systematic collection. Presenting the findings.40
4. Sometimes Havmor Company appoints marketing intelligent staff for research in different areas. 40
. Defining the problems and research objectives.3 BRANDNAME AND LOGO
4. Analyzing the information.
Strawberry and Chocolate together account for about 70% of the market followed by Butter Scotch and other fruit flavors. Varied and complex buyer behavior is the root cause of market segmentation. Cones.5 MARKET SEGMENTATION
Market Segmentation is a full larger group having similar wants. purchasing power. The ice cream market is segmented in following three ways:
4. Take away.5. buying practices. Sticks or Candies.5. etc. Any of these variables can be used to segment a market.1 BASIS OF FLAVORS:
3. Butter Scotch.
4.2 BASIS OF PACKAGING: 1. Strawberry. They may differ in their wants. Mango. Market consists of buyers and buyers differ in one or more respects. so that supply will have the best correlation with demand. Segmentation is consumer oriented marketing strategy. Market segmentation gives the formal segmentation to the fact that wants and desires of consumers diverse and we can orient specific category or the segment of the market. Chocolate. Vanilla. Kesar Pista. Cups.
4. 4. geographical locations.
Institutional / Catering. Parlors. 2.3 BASIS OF CONSUMER SEGMENT:
On the basis.5.
Retail and impulse together account for 70% of this market. Retail.42
4. 1. the market is divided into four segments. Impulse segment.
transfer of title of ownership. HO (i. physical distribution of merchandise. The channel of distribution of Havmor is as follows: Manufacture ↓ C & F Agents ↓ Distributors ↓ Dealers & Retailers ↓ Customers
The above channel strategy defines the channel members. These components are linked in the channel system by one or more of the marketing flows. transmission of marketing information and the flow of money in the form of payment of prices and other dues. physical distribution of merchandise.e.43
4. The route of channels of distribution includes the manufacturer and the consumer as well as all intermediaries. 43
. Ahmedabad Office) constantly watches the moments the orders given in Dispatch Department by various C&F Agents and Distributors. such as transfer of title of ownership. channels of distribution indicates the routes of pathway through which goods and services flow or move from producers to consumers. The finished goods first go to C&F Agent is not available then the finished goods directly go to Distributors.6 DISTRIBUTION CHANNEL
In the field of marketing.
this vital function is called physical distribution.7 PHYSICAL DISTRIBUTION
The marketing process is not complete simply by creating superb product and by creating the consumer through aggressive salesmanship. And at last dealers get the goods from the distributors. Physical distribution means the process of delivering the product to the user or consumer promptly. which is a commitment at Havmor. The major components of physical distribution of Havmor: Warehousing Inventory Order processing
. In process of marketing. safely and in time. refrigerated equipments and retail freezers are sources from world leaders in technology. Delivering the product to the consumer at the right time and right place is equally important function in marketing. and try to see the moments of dispatch that orders as early as possible by clubbing various distributors in one route.
4. The network is kept alive by large flat of refrigerated vehicles. Marketing Department also coordinate with Dispatch Department to get the order from C&F Agents and Distributors.44
Havmor has 32 distributors and 4000 retail outlets. so as to deliver quality products to the consumers.
and all C&F agents have their own cold storage facility.
. Maximum customer service implies large inventories.45
4. at the time of promotional scheme period or in summer they maintain high stock.7. The temperature kept in these storage houses is as low as –25°C. C&F agents. The inventory of the packaging material is kept as low as possible and according to the demand forecasted and growth rate of the market.e. so they keep the stock as per their requirement i. Here. Havmor states their physical distributor’s objective. transportation and few warehouses. Ice cream is product of impulse category that requires proper storage.7. to keep it in a proper condition. The production and consumption system also such that. Havmor has cold storages at different ends.3 ORDER PROCESSING:
Havmor has defined MOQ (Minimum Order Quantity) for the distributors to make order to the company. the job of the Havmor’s sales staff is to assist the distributors is selling the ice cream. Company has enough storage facility at their all plants.
4. As far as order of the dealers are concerned that is the headache of the distributors. These ends are factories.2 INVENTORY:
For the raw material.7.
4. the production is done through the whole year and main demand is in summer season. Distributors and Dealers. Havmor keeps the inventory.1 WAREHOUSING:
As ice cream is a perishable product and it must be kept in cool place to maintain its quality for few days. So every company has to store ice cream properly. the C&F agent carry the stock in bulk and they supply the ice cream to distributors or dealers. who also have proper freezing facilities. “getting the right goods to the right place.” No physical distribution system can simultaneously maximize customer service and minimize distribution cost.
sizes and designs can be chosen along with type of packaging material. careful handling of merchandise to take back defective goods and re-supply them quickly and to carry inventory for customer. Though outside attractiveness is not very important but the size of the pack and handling comfort is important.
4. Packaging plays a large role in marketing of ice cream products. • The most popular is a cup of 100-150 ml sold @ Rs. These are used for parties and in restaurants. Party pack and Family pack are in much use now a days.1 PACKAGING:
Ice cream consumers in India are generally children and young people. Ice creams at this price range are generally brought for immediate consumption. • • Bar. Many different packing. sticks and Cones represent another ready-to-eat market and are priced @ Rs.
4. Ice cream is marketed in three types of packaging.2 TRANSPORTATION:
Ice cream requires very low temperature in terms of -25°C.8. They are available everywhere from big super market to local retailers. interested in several things such as on time delivery. Company is acquiring Van on the contract basis. 5 and is very popular with kids and forms major portion of the ice cream sales.46 The designing distributors system is to study what the customer wants and what competitors are offering customer.8 PACKAGING & TRANSPORTATION
4. Havmor’s willingness is to meet customer needs.
. 8-15 price range. To attract these consumers ice cream manufacturers try hard to make their packaging attractive.8. so the Van used for the transportation is having the chillers.
energetic and persistent in order to cope up with the work involved which is sales promotion. He must be active.48
CHAPTER-5 SALES DEPARTMENT
The sales manager is the head of the sales department and he is guided in his policy by the managing director of the company. Exploring new possibilities of obtaining customers. He has to co-operate with the rest of the staff for new products and new uses of the commodity. It is true that a sale is the last activity of an organization but it is not the less important function. He must be energetic and put new life and interest in his sales staff. is an executive directing the activities of others. the sales manager must be a man of initiative and ready to propose new ideas as opportunity comes. The sales executive in additional to being competent the techniques and procedure of selling the product. Sales executive should be a good judge of human nature. market and new goods. a good mixer and know how to handle men not only his customers but also his competitors in the market.
. Thus. He must be a good organizer and know the psychology of the group to whom he serves.
So sales forecasting is very important to reduce the cost of over production and maintenance. to procedure the efficient salesman.
5.low cost of maintenance. Past figures related to consumption pattern. experts in the sales field use their expertise and give their opinion for the next year’s sales. safety for the operator .2 SALES BUDGET
5.ease of handling and good luck are to be achieved and the sales department has to co-operate with the production department to see that the quality is maintain and the rate of production is according to the schedule with planning department to prepare the sales programmed on which the entire planning will be based .1 SALES ORGANISATION
The sales department should co-operate with design department so that the product designed should meet the exact requirements of the customers and the important factors like efficiency.
Havmor considers following factors for forecasting the Sales: Observing Market Trends.sturdity.with the accounting department to bring the prices down and there by to increase the turn over and fix selling price. which is very costly. Havmor use Jury of Expert Executive Opinion. to give complete data and with the personnel dept.
5. Deciding the future strategy.1 SALES FORECASTING & DEVISING SALES BUDGET:
As Ice Cream is perishable good and it requires proper freezing to maintain Proper quality.3 PRICING POLICY
Using the above factors.2. With the accounts dept. Thus.
X. Policy on pricing relative to costs: Havmor follows Full Cost / Cost plus pricing. There are many methods of deciding pricing.50
A price policy is the standing answer to the firm to recurring problem of pricing.Cost of goods sold X + Y + 6% . including the variable costs and allocated fixed costs. It depends on the organization that which method it wants to adopt. It ranks in importance with key internal resources such as manufacturing. Normally it takes years to build and it is not easily arranged. research. The channel of distribution of the company has the following way:
. engineering’s and field sales personnel and facilities. no sale is made at a price lower than that covering total costs. Full Cost pricing. A distribution system is key of external resources. This set of marketing is called the channel of distribution.Cost of goods sold + distributor’s Margin X + Y + 6% + (12% to 20%) = MRP – Dealer margin added to above (Consumer Price)
5. It provides guidelines to the marketing manager to evolve appropriate pricing decisions.
For Example.Cost of Production X+Y.4 CHANNEL OF DISTRIBUTION
Every producer seeks to link together the set of marketing intermediaries that best fulfill the firm’s objectives.
which includes newspapers and magazines. outdoors advertising that includes posters. a means of mass communication. etc. multimedia including web site. Havmor Company has used many media of advertising such as press media. It is impersonal salesmanship for mass selling. In product today magazine Tender world In industrial express Machine tools Local channels
.51 Manufacturer Agents Dealers Retailers Customers
5. goods and services by identified sponsor. • • • • • • • Product boreal magazine They have attended an exhibition in world level and in India more than 50 times. boards and electric display.5 ADVERTISING
It is defined as any paid form of non-personal presentation and promotion of ideas.
Havmor company has done all promotional activities with a view to increase sales of products and to attract a new customer to company’s product. display and advertisement allowances. The sale of a product has to be promoted or encouraged through a No. etc. Free trials. Company has provided many offers such as “Buy one. coupons.52
5. Company has also done dealers promotional activities include cash discount on purchase.6 SALES PROMOTION
Sales promotion is a vital bridge or a connecting line removing the gap between personnel selling and advertising the two wings of promotion. Sales promotion may stimulate boost consumer denying at the point of sale or improve dealer effectiveness at the retail outlets.
. Allowance of goods. There are various sales promotional tools such as:
• • • • • •
Samples. etc. of influences at the point of purchase where retailers and prospective customer meet face to face. “Buy family pack and get attractive gift free”. Price off. Premiums. Contest. Price packs.Get one free”.
CHAPTER-6 FINANCE MANAGEMENT
Financial Management is an integral part of overall management. It is not totally dependent area. It draws heavily on related disciplines and fields of study such as economics, accounting, marketing, production and quantitative methods. The term “nature” as applied finance refers to its relationships with closely related fields of economics and objectives. In the early years of its evolution it was treated synonymously with the raising of funds. Now in addition to it is procurement of funds, efficient use of resources is universally recognized.
6.1 FINANCIAL REVIEW
In spite of staff competition, particularly in Ice Cream Industry, Havmor Company’s TOTAL SALES at the end of the financial year 2006-2007 is Rs. 6167 Lacs earned during previous year is Rs. 4929.8 Lacs. Company has earned the Gross Profit of Rs. 404.17 Lacs before depreciation and financial expenses during the year ended on 31st March 2005 as compared to 424.25 Lacs earned during the previous year. Net Profit is Rs. 31.8 Lacs during the year ended on 31 st March, 2005 as compared to Rs 55.35 Lacs earned during the last year.
6.2 ORGANISATIONAL STRUCTURE
Finance is the foremost requirement of any firm, finance decision constitutes one of the critical and key decisions of any department. The duty of General Manager is to handle accounts and overall co-ordination of finance department. All major decisions are taken by Managing Director. Plans are made by General Manager and it is approved by Managing Director. Managing Director is responsible for any kind of the result to the Directors of the Company.
6.3 FINANCIAL PLANNING
Finance is an important function of business. The application of planning to the function is financial planning. It involves the policies, determination of objectives and procedure relating to the finance function. Financial planning is an important function of a financial manager whether a business is big or small this function has to be performed. It is necessary to do financial planning for an existing as well as new business. 55
56 A financial plan is a statement estimating the amount of capital and determining its compensation and another important aspect of financial plan is to determine the pattern of financing. Before raising finance it is essential to make estimates for long term as well as short tern financial needs. Long term financing is generally needed for fixed capital requirement i.e. purchase of fixed assets. Short term finance is generally needed for working capital requirement i.e. marketable securities, debtors, etc.
In Havmor, the financial planning is done for long tern or short term financial requirements. Financial planning is necessary to reduce the cost of finance and all the long term and short term finances is raised through family funds and overdrafts. The requirement of all the long term is also fulfilled through bank as and when needed.
The term capitalization refers to the process of determining the plans if financing. It includes not merely the determination of the quantities of finance required for a company but also the decision about the quality of financing. Capitalization includes following aspects:
Estimating the total amount of capital to be raised. Determining the types of securities to be issued. Determining the composition or proportion of the various securities to be issued.
Capitalization comprises of a company’s ownership capital, which includes capital stock and surplus in whatever form it may appears and borrowed capital which consists of bonds or similar evidence of long term debt. In Havmor, the capitalization includes both the aspects i.e. short term as well as long term. 56
and shareholders fund.4. business sufers.57
6. If funds are inadequate.5
. but the formation of capital structure is important. Finance plays an important role in company’s life. Capital structure of Havmor as on 31.5 980. which shall help the organization to run its work smoothly and without any stress.03. preference share capital.1 CAPITAL STRUCTURE
In order to run and manage a Company. funds are needed right from the promotional stage up to end. It is therefore necessary that correct estimate of current and the future need of capital be made to have an optimum capital structure. Estimation of capital requirements is necessary.2010 Particulars Share Capital Reserves and Surplus Secured Loans Unsecured Loans Amt (Lacs) 359. The capital structure is made up of debt and equity securities and refers to permanent financing of a firm. It is composed of long term debts.5 1525 383.
In Havmor depreciation is on Fixed Assets is provided on Straight Line Method.58
6. Depreciation fund method. meant for resale and having fairly long life and are used in the business. Depletion method. It is charged on fixed assets. Fixed assets are those which are of material value. Annuity method.2 DEPRECIATION POLICY
Depreciation is an expense item.
. Insurance policy method. Diminishing balance method.4. Methods of depreciation are as follows: Straight line method. Machine hour rate method.
4.4 – 1097.4(Rs in Lacs) Total Current Liabilities= 1097.7 Lacs
. Fixed Capital.3 MANGAMENT OF WORKING CAPITAL
Capital required for a business can be classified under two main categories. 1.7 (Rs. 2.
Gross Working Capital =Total Current Assets Total Current Assets= 2702. In Lacs) = 1604. Working Capital. In Lacs) Net Working Capital= Current Assets – Total Current Liabilities = 2702.7 (Rs.59
6. Net Working Capital.
The concept of working capital is further divided into two broad parts they are… • • Gross Working Capital.
2 in Gujarat Varieties of Ice Creams Experience of more than 60 years
Less use of advertising medium Lack of Professionalism Prices are somewhat high as compared to Amul.61
CHAPTER-7 SWOT ANALYSIS
Strong market in Gujarat. No.
Ability to increase production due to installation of new technology To sell their Ice Creams in other states
Increasing number of competitors Increasing demand of Amul
but it has already planned to give them a tough challenge in the year to come. I conclude that they are horse for their competitors and progressing towards success though it has two strong competitors in Gujarat. Once more I am very thankful to the management of Havmor Food Pvt.
. it seems that Ice Cream is the King of Gujarat.
I conclude that the work of preparation project report is glared with co-operation.63
After visiting Havmor. weather Havmor will be able to make their success inroads but its new innovative marketing strategy have given a tough challenge to its competitors. unity and team work. Havmor is an industry that is very well equipped by the latest technology and efficient human resource. It is difficult to comment right now. for making our report both beautiful & comfortable. I felt glad of being a part of it. Ltd.. The visit to such a huge and reputed industry has improved my practical knowledge of working in industry and its various departments. I hereby wish them luck for the future.
After studying the marketing strategy of the Havmor.
2. Title of the book Personnel management King’s marketing mgt.Varma & R.C. Jain M.K.B. 1. Memorial M. Shukla Publication Himalaya Publishing House King book Educational Publishers’ Tata McGraw Hill Publishing co.Y.65
Sr No. Chand & Company
.K.M. ltd. 4. 3. [3rd Edition] Business organization & management Author C. [2nd Edition] Financial mgt. Aqarwal M. Khan & P. S.