CASE STUDY :

KANPUR
CONFECTIONERIES
PRIVATE LIMITED

DIVYANG PATEL –
20165011
HARSHIL SHAH –
20165012
JASMINE J PEREIRA -
20165013
KANPUR CONFECTIONERIES
PRIVATE LIMITED
KCPL was started in 1945 by Mohan Kumar Gupta in Jaipur to
sell sugar candies.
As competition increased the margins came down. So they
faced financial crisis and decided to shift their production to
Kanpur.
After the success of Kanpur project they also invested in Bihar
and Madhya Pradesh.
Now they decide to invest their surplus in Biscuit business.
KCPL reached number two position in the market with monthly
sale of 110 tones in 1973-74.
Mohan Kumar has six sons.
Alok Kumar who has done graduation in commerce is
taking care of Finance and liaison functions.
Vivek Kumar who has done mechanical engineering is
taking care of HRM and manufacturing.
Sanjay was responsible for marketing, logistic and
administration.
The family members meet on 5th of every month to
discuss about business.
Respecting the laws of the land, not exploring labour,
running business on ethical lines, treating the
consumers as king and not evading taxes are their
business principles.
 CASE SUMMARY
The main issues with the case are
• Whether or not to accept the Offer given by A-one confectionaries
limited

 Advantage :Avoid marketing, brand building and distribution

expenses
:Minimize the business risk and also utilizing the
surplus capacities
 Disadvantage :Possible loss of independence
: Dilution of company’s own brand
: Harming of family’s vision

• Absenteeism was increasing.

• Increasing Competition
COST-LEADERSHIP
Cost leadership as described by Michael Porter means to have the lowest
cost of operations in the industry to establish the competitive advantage.

Example from the case:

KCPL purchased raw materials in bulk so that the cost can be minimized.
The company had only 90 permanent labourers and rest were on
contractual basis.
STRATERGIES USED TO GAIN COST
LEADERSHIP
SALES &
PACKAGING ADVERTISING
DEALERSHIP

COMMON RAW
CUSTOMERS CLIENTS
MATERIAL

ROLES OF
FINANCES EACH FAMILY WAREHOUSE
MEMBER