You are on page 1of 37

Heritage: At a glance

The Heritage Group, founded in the year 1992 by Mr. Nara Chandrababu Naidu, is one of the
fastest growing Public Listed Companies in India, with six-business divisions-Dairy, Retail,
Agri, Bakery, Renewable Energy and VetCa under its flagship Company Heritage Foods Limited
(Formerly known as Heritage Foods (India) Limited).

The annual turnover of Heritage Foods crossed Rs.2380.58 crores in financial year 2015-16.
Currently Heritage's milk and milk products have a market presence in Andhra Pradesh,
Telangana, Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha, NCR Delhi,Haryana, Rajasthan,
Madhya Pradesh, Punjab, Uttar Pradesh, Gujarat and Uttarakhand. and its retail stores across
Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak
Districts and these are the backbone to retail operations and the state of art Bakery plant at
Uppal, Hyderabad, Telangana.

In the year 1994, HFIL went Public and was oversubscribed 54 times. HFIL shares are listed on
BSE (Stock Code: 519552) and NSE (Stock Code: HERITGFOOD).

The Founder

Mr. Nara Chandrababu Naidu

Heritage Foods Limited, India

Mr. Nara Chandrababu Naidu is one of the greatest dynamic, pragmatic, progressive and
visionary Leaders of the 21st Century.
With an objective of "Bringing prosperity into rural families through co-operative efforts", he
along with a few like minded, friends and associates promoted 'Heritage Foods' in the year 1992
taking opportunity from the Industrial Policy, 1991 of the Government of India to which end he
has been successful.
At present, Heritage has a market presence in the states of Andhra Pradesh, Telangana,
Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha, NCR Delhi,Haryana, Rajasthan, Madhya
Pradesh, Punjab, Uttar Pradesh, Gujarat and Uttarakhand.More than three thousand villages and
three lakh farmers are being benefited in these states. On the other side, Heritage is serving
millions of customers needs by, employing more than 5500 people and generating indirect
employment opportunities for more than 10000 people. Beginning with a humble annual
turnover of Rs.4.38 crores in 1993-94, the annual turnover of Heritage Foods crossed Rs 2380.58
crores in financial year 2015-16.
Mr. Chandrababu Naidu was born on April 20, 1951 in Naravaripally Village, Chittoor District,
Andhra Pradesh, India. His late father Mr. N. Kharjura Naidu was an agriculturist and his late
mother Smt. Ammanamma was a housewife. Mr. Naidu did his schooling in Chandragiri. He
went on to study at the Sri Venkateswara Arts College, Tirupati. He later also obtained his
Masters in Economics from the Sri Venkateswara University, Tirupati. Mr. Naidu is married to
Mrs. Bhuvaneswari, the daughter of Mr. N T Rama Rao, Ex-Chief Minister of Andhra Pradesh
and a famous star of Telugu Cinema. Mrs. N Bhuvaneswari is the Vice Chairperson & Managing
Director of the company.
Mr. Naidu held various positions of office in college and organised a number of social activities.
Following the 1977 cyclone, which devastated the Diviseema Taluk of Krishna District, he
actively organised donations and relief material from Chittoor district for the cyclone victims.
Mr. Naidu has always evinced keen interest in rural development activities in general and the
upliftment of the poor and downtrodden sections of society in particular.
Mr. Naidu has held various coveted and honourable positions including Chief Minister of Andhra
Pradesh, Minister for Finance & Revenue, Minister for Archives & Cinematography, Member of
the A.P. Legislative Assembly, Director of A.P. Small Scale Industries Development Corporation,
and Chairman of Karshaka Parishad.
Mr. Naidu has been honoured with numerous prestigious awards including "Member of the
World Economic Forum's Dream Cabinet" (Time Asia), "South Asian of the Year" (Time Asia),
"Business Person of the Year" (Economic Times), and "IT Indian of the Millennium" (India
Mr. Naidu was chosen as one of 50 leaders at the forefront of change in the year 2000 by the
Business Week magazine for being an unflinching proponent of technology and for his drive to
transform the State of Andhra Pradesh.
Mr. Naidu has been re-elected as the Chief Minister of Andhra Pradesh in the 2014 elections.
Heritage Slogan

Bring Home Health & Happiness

When you are healthy, we are healthy
When you are happy, we are happy

Vision & Mission


 Delighting every home with Fresh & Healthy products and empowering the Farmer

 To be a nationally recognized brand for Healthy and Fresh products with a revenue of
INR 6000 Crore.(USD 1 Billion) by 2022
 We anticipate, understand and respond to our Customers' needs by creating high quality
products and making them available through innovative and convenient channels
 We embrace the right technology to delight our Customers
 We are a strong supporter of balancing Economic, Social and Environmental aspects to
create a better tomorrow
 We are devoted to empowering the Farmer community through our unique 'Relationship
Farming' Model
 We aim to be the Employer of Choice by nurturing Entrepreneurship and Promoting
Empowerment, alongside transparency

Board of Directors
Mr. Seetharamaiah Devineni Chairperson,
Commerce graduate from Andhra University and a fellow member of the Institute of Chartered
Accountants of India. Senior partner of Brahmayya & Co., a leading Chartered Accountancy firm
and has been practicing for the last five decades. Has held various coveted posts, which include
Membership of the Southern Regional Board of Reserve Bank of India, and Federation of
Andhra Pradesh Chamber of Commerce and Industry, Chairpersonship of the Tirumala Tirupati
Devasthanams Trust Board and Trusteeship of the NTR Memorial Trust. Is also on the Board of
several other companies.

Board Committees
Audit Committee

Name Category
D Seetharamaiah Chairperson
N Sri Vishnu Raju Member
Rajesh Thakur Ahuja Member
V Nagaraja Naidu Member
N Bhuvaneswari Invitee
N Brahmani Invitee
Lead Internal Auditor Invitee
Statutory Auditor Invitee
A Prabhakara Naidu Invitee
Umakanta Barik Secretary
Nomination & Remuneration Committee

Name Category
N Sri Vishnu Raju Chairperson
D Seetharamaiah Member
Rajesh Thakur Ahuja Member
Umakanta Barik Secretary
Stakeholders Relationship Committee

Name Category
V Nagaraja Naidu Chairperson
D Seetharamaiah Member
N Sri Vishnu Raju Member
N Bhuvaneswari Member
Umakanta Barik Secretary
CSR Committee

Name Category
D Seetharamaiah Chairperson
N Sri Vishnu Raju Member
N Bhuvaneswari Member
N Brahmani Invitee
M Sambasiva Rao Invitee
A Prabhakara Naidu Invitee
Umakanta Barik Secretary
Risk Management Committee

Name Category
Rajesh Thakur Ahuja Chairperson
D Seetharamaiah Member
N Sri Vishnu Raju Member
N Bhuvaneswari Member
N Brahmani Invitee
M Sambasiva Rao Invitee
A Prabhakara Naidu Invitee
Umakanta Barik Secretary
Management Committee

Name Category
D Seetharamaiah Chairperson
N Sri Vishnu Raju Member
N Bhuvaneswari Member
N Brahmani Invitee
M Sambasiva Rao Invitee
A Prabhakara Naidu Invitee
Umakanta Barik Secretary

Corporate Management Team

Dr. M. Sambasiva Rao President,
Post Graduate and Doctorate in Zoology. Served the state and central governments for about two
decades as a member of the Indian Administrative Services(IAS). Dr Rao was the Joint Secretary
in the Department of Commerce under the Ministry of Commerce and Industry, Government of

Mr. CA A Prabhakara Naidu Vice President - Finance & Accounts,

Fellow Member of the Institute of Chartered Accountants of India and Graduated from Sri
Venkateswara University with a University rank in Science. Has 23 years of experience in
Finance and Accounts. Has been associated with the Heritage group since It's inception.

Mr. Umakanta Barik Company Secretary, Has Masters in Economics, LLB, FCS, LIII. Is a
Fellow Member of the Institute of Company Secretaries of India, New Delhi and a Licentiate
from Insurance Institute of India, Mumbai. Has over 14 years of experience in the domains of
Secretarial, Legal, Insurance & Intellectual Property Rights.

Mr. J Samba Murthy Head - Dairy Division,

Holds an MBA in Marketing and a Bachelors of Science degree. Is the Senior Vice President at
Heritage and has been associated with the Company since 2007. Has worked previously in
APDDCF Limited, Visakha Dairy NDDB, and Reliance in various positions in the field of Sales
& Marketing.

Mr. Dharmender K Matai Chief Operating Officer - Retail & Bakery,

Has B.Com, MBA (Technology Management) from Osmania University and has around 25 years
of experience with – Metro Cash & Carry India Pvt. Ltd., Reliance Retail Limited, Spencer
Hyper, Foodworld Supermarkets India, Hindustan Unilever Limited and Eureka Forbes Limited.
His last assignment is working as a Head - Space Management and Merchandise Management,
Stationed at Bangalore

Our Commitments
Milk Producers

Change in life styles of rural families in terms of

 Regular high income through co-operative efforts

 Women participation in income generation
 Protect the farmers from price exploitation by the un-organized sector
 Provide remunerative prices for milk
 Increase milk productivity through input and extension activities
 Supplementing agriculture with dairy farming
 Financial support for purchase of cattle; insuring cattle
 Establishment of Cattle Health Care Centers
 Supplying high quality Cattle feed
 Organizing 'Rythu Sadasu' and video programmes for educating the farmers in dairy

 Timely supply of quality & healthy products

 Supply high quality milk and milk products at affordable prices
 Focus on nutritional foods
 More than 4 lakh happy customers
 High customer satisfaction
 24 hour help-lines ( <10 complaints a day)

 Enhancing the Technical and Managerial skills of employees through continuous training
and development
 Best appraisal systems to motivate employees
 Incentive, bonus and reward systems to encourage employees
 Heritage forges ahead with the motto "add value to everything you do"


 Dividend Payment since Public Issue (January 1995)


 Highest importance to investor service; no notice from any regulatory authority since
2001 in respect of investor service
 Very transparent disclosures

 Doehlar: technical collaboration for milk drinks, yogurt drinks and fruit flavoured drinks
Alaval: supplier of high-end machinery and technical support focusing on Tetra pack
association for products package

 Potential Employment Generation

o more than 5500 employees are working with Heritage
o more than 11,097 procurement agents have found self employment in rural areas
o more than 6300 sales agents are associated with the company
 Employment opportunities for the youth by providing financial and animal husbandry
support for establishing MINI DAIRIES
 Producing healthy products for society

Heritage Foods is proud to have been recognized by some of the most important and
influential publications and organizations around the world.
Heritage Foods Bags "Golden Peacock Award for Excellence in Corporate Governance' for the
year 2016"Heritage Foods Limited has been declared as the Winner of 'Special Commendation'
for 'Golden Peacock Award for Excellence in Corporate Governance'

The above award was received by Smt. N Bhuvaneswari, Vice Chairperson & Managing Director
of the Company from M/s. Baroness Sandip Verma, Global Chairperson, Advisory Council,
Institute Of Directors, India and Chairperson, European External Affairs Committee, at a
specially organized "Golden Peacock Awards Nite" presentation ceremony was held on
Tuesday, 18th October 2016, at Millennium Hotel London Mayfair, 44 Grosvenor Square,
London W1K 2HP, UK, in the presence of (from Left to Right) Vijay Karia, Chairman &
Managing Director, Ravin Group of Companies, India, Stephen Haddrill, Chief Executive,
Financial Reporting Council, UK and Lt. Gen. J. S. Ahluwalia, PVSM (Retd.), President,
Institute Of Directors, India, along with distinguished business leaders from INDIA & UK,
during IOD India's "16th London Global Convention on Corporate Governance & Sustainability"
and Global Business Meet.

100 Most Innovative CIO's of IndiaMr. K.Rajababu, Head-Information Technology, Dairy

Division of the Company is among those conferred with the "100 Most Innovative CIO of India"
by The World CSR day (, Mumbai. The World CSR Day aims to
recognize Great Leaders across leadership levels in individual within an organization that aim
at believing the excellence is infinite and perfection has no limit and targets are milestones not an
end of the journey. The CIO Excellence Awards is the highest recognition to an individual
because they believe that perfection has no limits.
The criteria and competencies benchmarked for selection of 100 most Innovative CIO of India
are: -
 Strategic Perspective
 Track Record
 Continuous Innovations
 Effective Use of Technology
 Integrity and Ethics
 Thought Leadership

100 Most Influential CFO's of India Mr. A. Prabhakara Naidu,Chief Financial Officer of the
Company is among those conferred with the "100 Most Influential CFO's (Chief Financial
Officers) of India" title by the London-based Chartered Institute of Management
 Mr. A. Prabhakara Naidu, finds a place on the elite list of CIMA, which is the largest
management accounting body in the world, with more than 2,03,000 members in 179
countries. The CIMA award, which was conferred at the 2016 CIMA Annual Awards
Ceremony held in Mumbai on June 23, 2016, is in recognition of the CFO of the
Company "commitment and exceptional performance done by him in the field of
 The award has been instituted by the CIMA to acknowledge CFOs with a proven track
record of performance, achievements and contribution to the business.

Heritage has won 4 awards in "The Great Indian Icecream Contest", New Delhi It was indeed a
great pleasure that Heritage has won 4 awards in different categories in "The Great Indian
Icecream Contest" 5 th Edition held on 11 th Feb 2016 conducted by Indian Dairy Association
and DUPONT at New Delhi.
 The Silver Award for VANILLA i.e 2 nd prize on All India wide
 The Silver Award for CHOCOLATE i.e 2 nd prize on All India wide
 The GOLD AWARD in Kool Kids i.e 1 st prize on All India wide
 The BEST IN CLASS in Kool Kids i.e Award for Excellent product
In recognition of our efforts the Ministry of Energy, Government of India, has awarded Heritage
the First Prize for 'Conservation of Energy in Dairy Sector' several times - the years 2016,2015,
2014, 2012, 2010 and 2008.
1st Prize in National Energy Conservation Awards-2016

1st Prize in National Energy Conservation Awards-2015

2nd Prize in National Energy Conservation Awards-2015

National Energy Conservation Award 2014

National Energy Conservation Award 2012
National Energy Conservation Award 2010
National Energy Conservation Award 2008

Bagged the "Coca Cola Golden Spoon Award" 2015 & 2016 for its retail business division. The
annual 'COCA COLA Golden spoon awards' are well-established and highly regarded within the
industry as a mark of exceptional performance.
Listed among India's prestigious Top-500 companies list for the year 2013 & 2014, compiled by
The Economic Times, on the basis of industry respect and key financial parameters.

Images Most Admired Retailer of the Year - 2014 (Category Food & Grocery)
Awarded the "Most Admired Retailer of the year - 2014" (Food & Grocery) at India Retail

Fortune List of 50 Most Powerful Business Woman

N. Bhuvaneswari, Vice Chairperson & Managing Director, was placed in the list of Fortune-50
Most Powerful Business Women in India for the year 2013.
CSR Activities
Heritage Foods Limited works with a registered trust i.e. NTR Memorial Trust, Hyderabad
towards promoting education, enhancing vocational skills and supply of clean water. These
projects are in accordance with Schedule VII of the Companies Act, 2013 and the Company's
CSR Policy read with Companies (Corporate Social Responsibility Policy) Rules, 2014.
Company has built the "Academic Block" at "NTR Junior College" for Girls, Gandipet Campus,
Hyderabad from the CSR funds of the Company and the block has been inaugurated by Sri D
Seetharamaiah, Chairperson of the Company on 19th August, 2016 in the presence of the
Directors of Heritage Foods and other officials of NTR Memorial Trust.

Brand Recognition is the extent to which a brand is recognized for stated brand attributes or
communications. In some cases brand recognition is defined as aided recall - and as a subset of
brand recall. In the case, brand recognition is the extent to which a brand name is recognized
when prompted with the actual name.
A broader view of brand recognition is the extent to which a brand is recognized within a product
class for certain attributes. Logo and tagline testing can be seen as a form of brand recognition
testing. For example, if a product name can be associated with a certain tagline, logo or attribute
(safety and Volvo; "Just do it" - Nike) a certain level of brand recognition is present.


To some, branding might not feel like a tangible aspect of running a business. It can’t be seen
like a product on the shelf, or counted like a cash drawer at the end of the night. But, branding is
the reason people pay three times more for a product at one store over another.
Good branding is the product of a clear vision, and nobody knows more about vision than small
business owners. But, with limited resources, creating a brand identity can be tricky. Fortunately,
building brand awareness on the Internet doesn’t need to take a lot of money or resources.

Here are seven strategies to build your business brand:

Define the vision. Before moving ahead with the web site, create a brand positioning statement.
“This isn’t just, ‘What kind of web site do we want to be?’ This is ‘Who are we?’” says Harley
Manning, vice president at Forrester Research in Cambridge, Mass., a technology and market
research firm that advises on the effects technology has on consumers and businesses. Good
brand statements typically include the company’s mission, vision and values. “It’s succinct. It’s
typically something that will fit on a page easily,” he says.
Build a brand worth believing in. “Do you so believe in what you’re creating that you would
trademark it?” says Andrea Fitch, president and CEO of RedCarpet Creations, Inc., and national
president of the Society for Marketing Professional Services, both based out of Alexandria, Va.
Really consider what kind of brand could represent the business through the next decade. “Don’t
have a logo that in five years you’re going to be tired of and discard for another,” she says.
Remember, the web site is the brand. “A web site is not just a communication medium,”
Manning says. “It is actually a channel that must deliver on the promise.” Essentially, a web site
should embody the promise that it makes to customers. If, for instance, a business claims to be
innovative, the web site should look fresh and modern.
Create a cohesive experience between all mediums. Before she launched her company’s new
web site, Fitch made sure it would be an event that her potential clients would never forget.
RedCarpet Creations mailed 4,000 silver tubes containing scrolls that looked like rolled-up
carpet. Inside the scrolls was an announcement about the web site’s launch. Once online, the web
site was an extension of the invitations because it followed through on the themes of red carpet
imagery and references to visitors being treated like a VIP. Customers should easily be able to
recognize the company’s brand, whether it is print, online or some other form of media, Manning
Don’t sacrifice creativity. Once the brand’s guidelines are established, creative choices must
bring those attributes to life, Manning says. Don’t let the company’s brand become so
dominating that there is no room for new thoughts and ideas. Brand should be the jumping-off
point for interesting ideas, not the place where every new idea dead-ends. Fitch stresses that a
sense of fun and whimsy will only enhance the likelihood that people will take an interest in the
web site.
Don’t communicate brand at the expense of delivering. While a web site can be a significant
tool for building brand awareness, clarity and functionality are paramount. “Just be careful not to
let the communication about your brand get in the way of delivering your message,” Manning
says. People should be able to understand how to navigate the site without knowing a thing about
the company’s catch phrases. “You can’t frustrate and annoy people into liking your brand,” he
Listen to the customers: They determine a brand’s true value. Pay attention to customer
feedback about the site because, ultimately, it’s the customers’ opinion that counts. When it
comes to building a brand, a company can incorporate everything from signature colors to catch
phrases, but at the end of the day, it’s the consumer who decides what a brand is really worth.
“It’s not what you say [about] yourself, it’s what others say of you,” Fitch says.

SWOT Analysis

1.A well-established brand in South India

2. Good quality, hygienic products are affordable prices
3. One of the largest dairy in South India
4. Wide product range including milk, milk products, bakery
products, fresh fruits and vegetables, etc

5.Procurement of milk from cooperative dairies and agricultural

products from farmers, helping the farmers, dairies to get a fair
Strengths price

6.Educating farmers about best practices in agriculture and dairy


7.Good supply network

8. Good network of ‘Heritage Fresh’ retail stores in Hyderabad,

Bangalore and Chennai

9.Home delivery of retail grocery products

1. Presence mainly in South India

2.Limited global presence and low number of stores pan India
3.Strong competition in all sectors of operations means limited
Weaknesses market share growth

Opportunities 1.Rise in purchasing power of people

2.Pan India expansion of ‘Heritage Fresh’ retail stores
3.Acquisition of regional dairies
4.Market and advertise Heritage as a national brand and increase
its reach

1.Strong competition in retail space and dairy segment

2.Dependence on weather for agricultural products
Threats 3.Inflation makes it difficult to maintain competitive pricing


Q4FY16 Key metrics -Dairy


Key Highlights -Dairy

Key metrics -Retail

Human resources management is primarily concern with the people management. It Is a crucial
subsystem in the process of management. The success or of the organization not only depends on
the material, machines and equipment but also on the personnel who put in their best efforts for
efficient performance of the job.

Human resources management is the management of employees skills, knowledge, talents

aptitudes, creative abilities etc.


Human resources can be thought of as the total knowledge, talents aptitudes, creative abilities of
an organization work force as well as the value, attitude and beliefs of the individuals involve.


Personnel management effectively describes the process of planning and directing the application
development and utilization of human resources in employment.


Personnel management is the process of attracting, holding, motivating, and people involving all
managers, line and staff

Objectives crystallize the fundamental principles enunciated in the mission and policy
statement. To operational the policy mission and statement, the following are the objectives of
HERITAGE FOODS (INDIA) LIMITED (HFIL) of different training programmes.

1. To ensure that adequate time and efforts are invested at all levels of management towards
people management.

2. To instill in all employees a feeling of pride and belong with an intention to increase
organizational loyalty.

3. To design specific programmes with special focus on equipping the employees to meet
the emerging challenges and opportunities.

4. To help employees improve their core competency that has direct impact on their
performance and productivity.

5. To inculcate in the employee, the need for observing sound organization principles in
order to ensure healthy organization practices.

A study of the fundamental mission and philosophy of HERITAGE FOODS (INDIA)

LIMITED (HFIL) brings out to our notice the fundamental assumptions behind all HRD attempts

 A high level of confidence in capacity and integrity of all employees.

 Recognition by the management of need for the integration of the objectives of the
organization and the needs of the individual employees.
 The need to recognize the fact that HRD attempts must be incorporated into the basic
business policies and practices.
 The conscious attempt to make every individual feel that he is a part of a team, which has
a specific objective.
 The need to ensure that training is a proactive process, which must be designed taking
into consideration future changes in the environment, the business, and the competition
and customer expectations.
 The need to constantly update job specific skills among employees to make them more
efficient and effective in discharging their duties.
 To aim at attitudinal changes required making the employee more conscious of his role as
a representative of the organization.
 To provide avenues for the growth and development of the individual through
actualization of inherent potentialities.


The duration of a training varies with skill to be acquired, the complexity of the subject, a
trainee’s aptitude and ability to understand, and the training media used.

Generally, a training period should not be unduly long: if it is, trainees may feel bore
uninterested. The ideal session should not go beyond 2 to 3 hours at stretch, with a break in
between 2 sessions. It convenient employees may be trained for a week or a fortnight for an
hour or two, every day after work hours.

The training period may extend from 3 weeks to 5 months even more, depending upon
job requirements.

The physical locations of the programmes should be in pleasant surrounding away from
the noise and tension of the work place.

Once the training programmes have been designed, it needs to be implemented.

Implementation is beset with certain problems. Firstly, most managers are action oriented and
frequently say no to training efforts. Secondly, there is problem of location suitable trainers
within an organization. Any training programmed implementation involves action on the

 Deciding the location and organizing training and other facilities.

 Scheduling the training programme.
 Conducting the programme
 Monitoring the progress of trainees.


Objectives of training evaluation is to determine the ability of the participant in the

training programme to perform jobs for which they were trained, the specific nature of training
deficiencies, whether the trainees required any additional on the job training and the extent of
training not needed for the participants to meet job requirements.


 Evaluation specialist must be clear about the goals and purposes of evaluation.
 Evaluation must be continuous.
 Evaluation must be specific.
 Evaluation must be provide the means and focus for trainers to be able to appraise
themselves, their practices, and their products.
 It is mainly based on objective methods.

Training effectiveness is the degree to which trainees are able to learn and apply the
knowledge and skills acquired in the training programme. It depends to the attitudes, interests,
values, and expectations of the trainees and the training environment. A training programmer is
likely to be more effective when the trainees want to learn, are involved in their jobs, have career
strategies. Contents of a training programme, and the ability and motivation of trainers also
determine training effectiveness.


Several methods can be employed to collect data on the outcomes of training. Some of these are:

1. The opinions and judgments of trainers, superiors, and peers.

2. Asking the trainers to fill up evaluation forms.

3. Using a questionnaire to know the reactions of trainees,

4. Giving oral and written tests to trainees to ascertain how far they have learnt,

5. Arranging structured interviews with the trainees,

6. Comparing trainees performance on the job before and after training.

7. Studying profiles and career development charts of trainees,

8. Measuring levels of productivity, wages, costs, absenteeism’s and employee turnover

after training.

9. Trainees comments and reactions during the training period, and Cost benefit analysis of
training programme.

After the evaluation, the situation should be analysed to identify the possible causes for
difference between the expected outcomes and the actual outcomes. The precautions should be
taken in designing and implementing future training programme so as to avoid these causes. The
outcomes of training programme should justify the time, money, and efforts invested by the
organization in training. Information collected during evaluation should be provided to the
trainees and the trainers as well as to others concerned with the designing and implementation of
training programmes. Follow-up action is required to ensure implementation of evaluation
report at every stage.


Change in organizations is a social process, and not merely an analytical one. The field of
Organisation Development (OD) has evolved a number of approaches to create organic
conditions that lead to employee participation in decisions and freedom to initiate ideas to
improve organizational processes. Thus OD is a systematic process to planned change. It
involves following four stages:

Diagnosis : Establishing the current situation in the organization.

Unfreezing : Getting people ready to accept change.

Intervention : Introducing change

Freezing : Making sure that change sustains for a long period of time.

A variety of OD methods have been developed for facilitating change through using these
stages in India (Ramnarayan et al, 1998).
1. Action Research: Action Research involves systematically collecting data on relevant
problems, analyzing and feeding the data back to the organization, and helping the
organization to take action to address the problems. It attempts to tap the capabilities of the
employees with the dual purpose of contributing to successful change efforts as well as fulfil
employee needs for greater involvement. The approach seeks to empower the concerned
organizational members so that they may become self-reflective practitioners rather than
mere spectators in the process of organizational change. When people become self-reflective
practitioners, not only would meaningful solutions emerge, but more important, they will
develop the abilities to diagnose and solve future problems.

2. Process Consultation: Process consultation is an OD method that helps managers and

employees improve the processes that are used in organizations. The processes include:
communication, conflict resolution, decision making, group interaction, and leadership. One
of the distinct features of the process consultation approach is that an external or internal
consultant is used. The consultant helps the employees to help themselves. For instance, in
team building activity, a work team is brought together to discuss conflicts, goals, processes
of communication and decision-making, creativity and leadership. The team then plans to
overcome problems and improve results. Schein (1969) who has pioneered the process
consultation approach has identified four types of interventions that process consultants often
employ in working with groups.

(a) Agenda-setting interventions are aimed at making the group aware of the internal
processes by which it makes decisions and solves problems.
(b) Date feedback interventions diagnose the interpersonal processes in a group, and give
feedback to enable group members to improve processes.
(c) Counseling is required during or after a feedback session to ensure that behaviours
are suitably modified.
(d) Structural interventions involve suggestions on how work should be allocated,
committees organized, or group norms enforced.
3. Training workshops and conferences: Training has become an important OD tool in the
change process. Training programs are used not only to generate ideas, develop
collaboration among employees, enhance skill, but also for the development of new roles,
systems, procedures, and work methods. Top management’s involvement in training
programmes provides the context for defining a clear framework of the company strategy.
Training workshops and conferences represent an important first step in the organizational
change process as they have the potential to achieve the following objectives:
(a) Raise the consciousness of participants.
(b) Bring awareness of the gaps between reality and ideals.
(c) Provide a common platform to articulate shared and difficulties.
(d) Generate ideas for change.
(e) Create greater awareness of change.
Training must be followed up with appropriate management actions and initiatives to
make the desired change in reality.


All training activities must be related to the specific needs of the organization the needs
and the individual employees. A training programme should be launched only after the training
needs are assessed clearly and specifically. The effectiveness of a training programme can be
judged only with the help of training needs the gap between the existing and required levels of
knowledge, skills, and performance and should be specified. The problem areas that can be
resolved through training should also be identified.

Training needs can be identified through the following types of analysis

Organizational Analysis
It involves a study of the entire organization. In terms of its objectives, it is resources,
resource allocation and utilization, growth potential and its environment. Its purpose it to
determine where training emphasis should be placed within the organization. Organizational
analysis consists of the following elements:

 Analysis of objectives
 Resource Utilization Analysis
 Organization analysis
 Environmental Scanning

Task or Role Analysis

It is a systematic and detailed analyses of jobs to identify job contents, the knowledge,
skills, and aptitudes required and work behavior.

Manpower Analysis

In the analysis the persons to be trained and the changes required in the knowledge, skills
and aptitudes of an employee are determined. Training can be relevant and viable if the three
types of analysis given above are carried on continuously more over this analysis should be
integrated in a carefully designed and executed programme.

Training Objectives:

Generally line manager ask the personnel manager to formulate the training policies. The
personnel Manager formulate the following training objectives in keeping with company’s goals
and objective:

a. To prepare the employee both new and old to meet their present as well as the changing
requirements of the job and the organization.

b. To prevent obsolescence.
c. To prepare employees for higher-level tasks.

d. To assist employees function more effectively in there present positions by exposing

them to the latest concepts, information, and techniques and developing the skills they
will need in their particular fields.

e. To built up a second line of competent officers and prepare them to occupy more
responsible positions.

f. To develop the potentialities of people for the next level job.

g. To ensure smooth and efficient working of a department.

h. To ensure economical; output of required quality.

i. To promote individual and collective morale, a sense of responsibility, cooperative

attitudes and good relationships.

Designing a Training Programme

In order to achieve the training objectives, an appropriate training policy is necessary. A

training policy represents the commitment of top management to employee training. It consists
to rules and procedures concerning training. A training policy is required:

a. To indicate the company’s intention to develop its employees;

b. To guide the design and implementation of training programmes;

c. To identify the critical areas where training is to be given on a priority basis; and

d. To provide appropriate opportunities to employees for their own betterment.

A sound training policy clearly defines the following issues:

i) The results expected to be achieved through training

ii) The responsibility for the training function
iii) The priorities for training
iv) The type of training required
v) The time and place of training.
vi) The payments to be made to employees during the training period.
vii) The outside agencies to be associated with the training.
viii) Relationship of training to the company’s labour policy.

Training Methods and Techniques

The methods employed for training of operatives may be described as under

On-the-job Training

In this method, the trainee is placed on a regular job and taught the skills necessary to
perform it. The trainee learns under the guidance and supervision of the superior or an instructor.
The trainee learns by observing and handling the job. Therefore, it is called learning by doing.

Several methods are used to provide on the job training e.g., coaching job rotation,
committee assignments, etc. A popular form of the job training is Job Instruction Training (JIT)
or step-by-step learning. It is widely used in the United States to prepare IInd class employees. It
is appropriate for acquisition or improvement of motor skills and routine and repetitive
operations. The JIT involves the following steps:

 Preparing the trainee for instruction. This involves putting the trainee at ease, securing
his interest and attention, stressing the importance of the job, etc.
 Presenting the job operations or instructions in terms of what the trainee is required to do.
The trainee is put at work site and each step of the job is explained to him clearly.
 Applying and trying out the instructions to judge how far the trainee has understood the
 Following up the training to identify and correct the deficiencies, if any.
JIT method provides immediate feedback, permits quick correction of errors and provides
extra practice when required. But it needs skilled trainers and preparation in advance.

Vestibule Training

In this method, a training center called vestibule is set up and actual job conditions are
duplicated or simulated in it. Expert trainers are employed to provide training with the help of
equipment and machines, which are identical with those in used at the workplace.

Apprenticeship Training

In this method, theoretical instruction and practical learning are provided to trainees in
training institutes. In India, the government has established Industrial Training Institutions (ITI)
for the purpose. Under the Apprenticeship Act 1962 employers in specified industries are
required to train the prescribed number of persons in ‘designated trade’. The aim is to develop
all-round craftsmen. Generally, a stipend is paid during the training period. Thus, it is an “earn
when you learn” scheme.
------------------- in Rs. Cr. -------------------
Balance Sheet of Heritage Foods
Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 23.20 23.20 23.20 11.60 11.53
Equity Share Capital 23.20 23.20 23.20 11.60 11.53
Reserves 216.79 169.81 155.79 130.29 81.60
Networth 239.99 193.01 178.99 141.89 93.13
Secured Loans 103.95 142.48 127.42 98.18 129.37
Unsecured Loans 1.15 0.00 0.00 0.00 11.00
Total Debt 105.10 142.48 127.42 98.18 140.37
Total Liabilities 345.09 335.49 306.41 240.07 233.50
Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 504.99 449.92 408.41 353.48 337.29
Less: Accum. Depreciation 192.96 169.27 136.93 116.69 107.03
Net Block 312.03 280.65 271.48 236.79 230.26
Capital Work in Progress 9.59 9.00 11.12 8.27 8.92
Investments 0.98 0.98 0.99 1.12 1.12
Inventories 144.91 139.37 108.55 82.09 93.45
Sundry Debtors 28.79 24.24 16.61 15.07 11.20
Cash and Bank Balance 45.23 40.68 44.42 32.95 29.99
Total Current Assets 218.93 204.29 169.58 130.11 134.64
Loans and Advances 33.41 30.91 38.88 34.49 34.13
Total CA, Loans & Advances 252.34 235.20 208.46 164.60 168.77
Current Liabilities 208.50 174.10 171.82 161.54 165.56
Provisions 21.34 16.23 13.81 9.19 10.03
Total CL & Provisions 229.84 190.33 185.63 170.73 175.59
Net Current Assets 22.50 44.87 22.83 -6.13 -6.82
Total Assets 345.10 335.50 306.42 240.05 233.48

Contingent Liabilities 54.08 66.75 52.04 55.90 56.00

Book Value (Rs) 103.45 83.20 77.16 122.32 80.77

Profit & Loss account of Heritage ------------------- in Rs. Cr. -------------------

Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

12 mths 12 mths 12 mths 12 mths 12 mths

Revenue From Operations
2,329.99 2,034.54 1,695.94 1,581.08 1,377.23
Less: Excise/Sevice Tax/Other
1.04 1.06 0.88 0.78 0.38
Revenue From Operations [Net] 2,328.95 2,033.48 1,695.06 1,580.30 1,376.85
Other Operating Revenues 51.63 39.49 26.98 21.51 16.55
Total Operating Revenues 2,380.58 2,072.97 1,722.04 1,601.81 1,393.41
Other Income 6.55 7.03 4.95 4.20 3.21
Total Revenue 2,387.13 2,079.99 1,726.99 1,606.01 1,396.61
Cost Of Materials Consumed 1,443.22 1,341.60 1,060.44 976.14 968.23
Purchase Of Stock-In Trade 492.97 421.84 322.11 262.75 229.31
Changes In Inventories Of
-28.08 -50.79 -8.88 34.42 -47.62
FG,WIP And Stock-In Trade
Employee Benefit Expenses 139.99 110.72 100.09 87.18 69.16
Finance Costs 15.46 15.93 13.22 16.70 19.71
Depreciation And Amortisation
34.51 33.99 25.00 22.02 21.19
Other Expenses 201.72 167.56 153.30 140.24 123.06
Total Expenses 2,299.78 2,040.85 1,665.28 1,539.45 1,383.04
Mar 16 Mar 15 Mar 14 Mar 13 Mar 12

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional,

87.35 39.14 61.71 66.57 13.58
ExtraOrdinary Items And Tax
Exceptional Items -1.37 0.00 0.00 0.00 0.00
Profit/Loss Before Tax 85.98 39.14 61.71 66.57 13.58
Tax Expenses-Continued Operations
Current Tax 30.87 11.69 12.91 12.76 2.90
Deferred Tax -0.13 -0.76 2.99 1.38 1.35
Tax For Earlier Years -0.18 0.00 0.00 -0.44 -0.01
Total Tax Expenses 30.55 10.93 15.90 13.69 4.24
Profit/Loss After Tax And Before
55.43 28.21 45.81 52.88 9.33
ExtraOrdinary Items
Extraordinary Items 0.00 0.00 -0.50 -2.91 0.00
Profit/Loss From Continuing
55.43 28.21 45.31 49.96 9.33
Profit/Loss For The Period 55.43 28.21 45.31 49.96 9.33
Mar 16 Mar 15 Mar 14 Mar 13 Mar 12
12 mths 12 mths 12 mths 12 mths 12 mths


Basic EPS (Rs.) 23.89 12.16 19.53 43.28 8.10
Diluted EPS (Rs.) 23.89 12.16 19.53 43.28 8.10
Indigenous Raw Materials 1,413.79 1,313.94 1,030.58 0.00 0.00
Indigenous Stores And Spares 13.66 11.24 12.67 0.00 0.00
Equity Share Dividend 6.96 6.96 6.96 3.46 2.31
Tax On Dividend 1.42 1.42 1.18 0.59 0.37
Equity Dividend Rate (%) 30.00 30.00 30.00 30.00 20.00