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SUBMITTED TO: SIKKIM MANIPAL UNIVERSITY CENTER CODE: 02914
SUBMITTED BY: Malhan Nareshsingh B 510824594
Shri Krishna Infotech Ahmedabad Center Code No.02914
BY Malhan Nareshsingh B
A project report submitted in partial fulfillment of the requirement for Master Of Business Administration Of Sikkim Manipal University India SIKKIM MANIPAL UNIVERSITY OF HEALTH MEDICAL AND TECHNOLOGICAL SCIENCE DISTANCE EDUCATION WING SYNDICATE HOUSE MANIPAL-576104 2
I here by declare that the project report entitled Study on “Market Research” AT
Submitted in partial fulfillment of the requirement for the degree of Master of Business Administration To, Sikkim Manipal University, India is my original work and not submitted for the award of any degree, diploma, fellowship, or any other similar titles or prizes
Place: Ahmedabad Date: 30th Nov. 2009
Malhan Nareshsingh Reg.No.520575669
Internal Examiner External Examiner 4 .ANNEXURE –C The project report of Malhan Nareshsingh B Study on “Market Research” AT Is approved and is acceptable in quality and form.
) Certified 5 . diploma. Medical & Technological Science Malhan Nareshsingh B. fellowship or any other similar titles or prizes and that the work has not been published in Journal or Magazine. No.ANNEXURE –D This is to certify that the project report entitled Study on “Market Research” at Submitted in partial fulfillment of the requirement for the degree of Master Of Business Administration Of Sikkim Manipal University Of Health. Has worked under my supervision and guidance and that no part of this report has been submitted for the award of any other degree. (Reg.
PREFACE MBA is a course where on one can learn effectively with theory and concepts. The main aim & objective behind this training is to integrate the knowledge & analysis of mentioned project. Its really a great learning session for me as for the first time I have made such long project after gathering datas. not in the classrooms. One has to learn the practical application by working in the filed and doing live projects. 6 . The actual learning is where the actual work is.
journals. the past few days have been a stimulating learning experience and I shall always be indebted to all the people whose role has been instrumental in making this project successful. 7 . Although my project began on a slow footing. periodical. I express my sincere gratitude to all members of library of the institute for their wholehearted support and providing the latest information from books. and Internet to us.ACKNOWLEDGEMENT I would like to express our gratitude to the Sikkim Manipal University of health medical and techno sciences for providing us the great opportunity of working on this project.
Company Profile Market research at Amul Introduction of the Topic 8 .Table of Contents 1. 3. 2.
when a certain unassuming gentleman. by the name of Vadilal Gandhi. the great-grand father of Virendra R Gandhi.INTRODUCTION TO VADILAL Today. variety and state-of-the-art machinery and equipment. 10 . availability. been a long journey for the group. the name Vadilal conjures images of lip-smacking ice cream in a whole gamut of flavors. started a soda fountain. It has. which traces its origins way back to 1907. Rajesh R Gandhi and Devanshu L Gandhi. however. Vadilal spells quality.
Ranchod Lal. Ramchandra and Lakshman. "In 1972-73. the Vadilal Company had already evolved into a modern corporate entity. with a hand cranked machine. The duo imparted a new vision to the venture and infused a spirit of calculated risk-taking into the company. by the 1970s. the company moved towards neighboring states like Rajasthan and Madhya Pradesh. the company had 8-10 outlets in Ahmedabad. and. By 1985. Eventually. Gradually. But the expansion was undertaken very methodically and we spent five to six years in spreading our business and then consolidating it" says Shri Ramchandrabhai Gandhi (Chairman). started a small retail outlet in 1926. we moved from the city to other parts of Gujarat.He passed on the business to his son. As a result. 11 . Ranchod Lal's sons. who ran a one-man show. inherited the business and they were instrumental in giving a new direction to the company.
1 INTRODUCTION TO VADILAL GROUP Vadilal. These ISO 9002 certified plants for Pundhra and Bareilly are established in such a way that they are in consonance with the market expansion strategies of the division. Pundhra and Bareilly. Starting from one man show with a hand cranked machine in 1926 as a small retail outlet.1. the ice cream division now has a production capacity of 1 lac ltrs/day at 3 sophisticated plants. the name conjures up images of ice cream laden bowls and a plethora of new flavors. located at Ahmedabad. 13 .
packs and forms. Vadilal introduced the concept of "flavor of the month" under which the company develops and markets one new flavor every month for its customers delight. Refrigeration equipments and retail freezers are sourced from world leaders in the technology so as to deliver quality products to the consumers.Vadilal has one of the largest cold chain networks in India. The network is kept alive by a large fleet of refrigerated vehicles. comprising of 12 C&F agents.000 retailers. Vadilal has 25% of the Indian ice cream market as its share. cups. 250 distributors and 15. which is a commitment at Vadilal. 14 . The group has a product matrix of over 200 SKUs comprising of cones. But that's no surprise considering that the group has the largest range of ice creams in the country in a variety of flavors. family and party bricks and bulk packs. candies.
Today.2 HISTORY & DEVELOPMENT OF VADILAL Vadilal – a company established in 1926 was started by Late Shri Vadilal Gandhi who commenced the business of making ice cream with the help of a hand-cracked machine in a small retail outlet. Accompany that has a simple yet straight forward mission: 15 . Vadilal is a name familiar in partially every Indian household.1. Well-known umbrella brands. covering a diverse range of products and activates which have one thing in common: a vibrant present ad a bright future.
What started as a home-made ice –cream has today branched out include processed Foods.” What started as a one-man show with a hand-cranked Ice-cream maker in a small retail outlet has today grown to apply over 700 people. They have a dynamic sales force of over 150 sales and marketing professionals. 16 . in order to infuse a competitive spirit amongst peers and build a consolidated force of live-wire professionals.1800 million (USD 41 million) and still rising of which around 25% is contributed by the experts.“To provide quality products and Services at an affordable price. chemicals and specially Gases. construction and Real Estate. Forex advisory Services. The company has affected hangs in its organizational structure and training inputs from time to time. is the marketing arm of Vadilal Industries Ltd. has today risen to an annual turnover of Rs. Vadilal Enterprise Ltd. What started with earnings that could easily fit into a pocket.
The Company's objects in Processing of frozen fruits and 1982 1985 vegetables and manufacture of ice cream. Ltd. Ltd.In 1997 ‘Vadilal’ was converted from private limited to public limited company. The Company was amalgamated with Vadilal Oxygen Pvt. 1961 to carry on the business of manufacture of ice cream candy. 17 . effective 1st July. It is listed on Mumbai and Ahmedabad stock exchanges. Vadilal has stood the challenge of time and held its own in the country even in the presence of global giants. The Company was incorporated in the name of Vadilal Oxygen Pvt. was Incorporated on 12th June. YEAR EVENT Vadilal Ice-cream Pvt. on 28th April to carry on the business of purification and refilling of oxygen gas and selling the same. Ltd..
Gandhi and Laxmanbhai R. 1989 1991 It was promoted by Ramchandra R. 18 . Additional 45.The company issued 3..10 each at the end of 7th.500 shares were allotted. (ii) 15.10 each at a premium of Rs. company from 4th August. and it became a Public Ltd. Accordingly 13.25. Part A of Rs. The processed foods and frozen vegetable division commenced activities in May.15.80. Name of the Company was subsequently changed to Vadilal Industries Pvt. Gandhi.130 each as follows.000 debentures to Employees Balance 2.000 Debentures to UTI.15 per share on the date of allotment of debentures.550 debentures not taken up under preferential quota was issued to the public.100 of each debenture was to be converted into 4 equity shares of Rs. Part B of Rs. Ltd.14% secured redeemable convertible debentures of Rs.000 Debentures along with 1. 8th and 9th year respectively from the date of allotment of debentures.125 debentures were allotted to retain over subscription.00. (i) 30.30 of each debenture was to be redeemed on three full installments of Rs.000 .
The Company proposed to manufacture concentrated fruit juices/ pulps aseptically packed with an annual capacity of 16.Bengal. soya bean extraction. and 1993 W. subscribed and paid up. 19 . fruit based ice creams etc.53. The commodities division comprises HPS groundnuts. 2.000 bonus equity shares issued in prop.P. lollies. to manufacture and sell the products under the brand name and as per the quality stipulated. M. non-basmati rice etc.200 TPA. Also frozen dessert an item containing vegetable fat and in low cholesterol was to be manufactured in novelty shapes and bulk packs in various flavors. Similar arrangements are to be entered into with Companies in Tamil Nadu. In future. sesame seeds. 15. low priced varieties like milk.46. The company entered into a marketing arrangement with a leading Company in U.P. frozen desserts. The ice-cream division had introduced 300 flavors in 600 different packs. issued.The products such as canned/frozen tropical fruit juices and pulp canned/frozen vegetables are mainly exported. Of equity shares of Rs. mini milk fingers. it was proposed to include extruded products.500 No.. Punjab.10 each.
and Gujarat.80. Of equity shares of Rs. Exports of agricultural commodities such as HPS. tomato ketchup sauce.3107:493 shares held on 25th November 1989.18.42. Dist. The company launched low fat calorie ice cream `Vadilal Lite' in different flavors manufactured at Ahmedabad.000 No. During July.46 cr when compared on an annualized basis and the overall working was reported to be 1994 satisfactory.10 each at a prem. mixed fruit and pineapple jam. Valsad. Gujarat. Jamnagar. The Company launched mango pulp. and Gujarat. The Company undertook to install new machineries for IQF project (for manufacturing frozen vegetables and fruits) at Dharampur. soya bean natural and hulled sesame seeds and also vegetable and fruit pulps rose by 61% to Rs. 13.500 shares allotted in part conversion of 14% second redeemable partly convertible debentures. The Company installed wind farm unit with total capacity of 1. the company issued 15. sweet corn soup (cream style) and baked beans. of Rs.00.28 MW consisting of 4 Wind Turbine Generators (WTG) of 320 KW each and 400 KVA transformers at village Lamba. Dist.50 per share to 20 .
promoter group of companies. On 23rd July, the company allotted 20,00,000 No. Of equity shares of Rs.10 each at a premium of Rs.37.50 per share to promoters on private placement basis. The Company was on the look out for a foreign 1995 collaboration. Additional WTGs of 320 KW each was installed at village Bhogat, Dist. Jamnagar, Gujarat. The company received necessary permission for developing commercial building project name `Mahalay' off C.G. Road, Navrangpura, and Ahmedabad at a cost of Rs.9 cr. The company has installed IQF facilities at Dharampur plant at a total cost of Rs.6 cr by using fluidized bed-belt type continuous freezing technology imported from U.K. with a 1996 capacity of process 2 MT of fruits and vegetables per hour. The Company has launched Mango/Pulp/Ral, frozen green peas into domestic market.
1.3 VISION & MISSION STATEMENT
MISSION “To provide quality products and Services at an affordable price.” Quality Policy: Vadilal Industries Limited firmly believes in providing quality products with innovative features at competitive prices for customers’ satisfaction.
We shall strive to achieve our Goals by continuously improving and upgrading Technology, selecting appropriate process and providing vibrant environment with help of High Quality standards and emphasis on Hygiene. We aim to be industry leader by recognizing the changing needs of customer and ensuring full commitment towards implementing Quality Management System as per ISO 9002.
Quality Assurance Pundhra: Our Pundhra Plant is ISO: 9001:2000 and HACCP Certified. The certification of this plant has been carried out by BVQI under the latest regulations of food safety system, September 2002. BVQI is a wholly owned subsidiary of Bureau Veritas, a France-based multinational organization. The plant has recently received the Export Inspection Council of India, Ministry of Commerce and Industry, Government of
000 liters ice cream per day in near future. We plan to enhance the capacity by 1. This shall be supported by state-of-the-art machineries from China.India certification for exports that in it is a benchmark for hygiene and quality. To cater to the increasing demand of ice cream in India the company expanded the capacity to 60.000 liters per day in 2005. Denmark and other foreign countries. 24 . Vadilal Industries Limited. Bareilly: Bareilly plant is also having ISO 9001: 2000 & HACCP certification as per IS/ISO 9001: 2000 & IS 15000: 1998 respectively from Bureau of Indian Standards (BIS) which is the largest certification authority in India.00. Bareilly was established in 1996 for ice cream manufacturing with an installed capacity of 15000 liters per day.
25 . Vadilal chemical Ltd.4 SIZE OF THE UNIT & FORM OF ORGANIZATION • Size of the unit Large-scale unit • Forms of the organization 1. Vadilal Enterprise Ltd. 2.1.
3.5 ORGANIZATION STRUCUTRE Chairman Managing Director General Manager Finance Department Senior Manager Accountant Manager Manager Production Department Senior Manager Executive Assistant Assistance Labor Manager Marketing Department Senior Manager Manager & Sales Salesman Executive Personnel Department 26 . Processed food division 4. Construction division 1. Forex advisory division 5.
Senior Manager Deputy Manager Assistant 27 .
1 ORGANIZATION CHART PRODUCTION MANAGER SENIOR MANAGER ASSISTANT MANAGER EXECUTIVE MANAGER 28 .2.
GMC powder 5. Cream and butter 3.2 TYPES AND SOURCES OF RAW MATERIAL The following are the raw materials are used in the manufacturing of the ice cream 1. Vegetable oil 29 . CMC powder 4.ASSISTANCE LABOUR 2. Milk 2. Different flavors 7. Nuts 8. Sugar 6.
2. All the raw material is analyzed by quality assurance department.3 PRODUCTION PROCESS Milk Add sugar GMC/CMC powder Cream Flavors Freezing process 30 . The main suppliers of milk are Mahalaxmi dairy. In this department quality of milk is checked by microbiological technique. In this department various types of tests are done in raw material. Kamdhenu dairy and the other local suppliers like farmers.Here is milk purchased in bulk.
GMC & CMC powders are useful to maintain in thickness. storage tanks ( storage cap. two stage Homoginiser. Boil milk in high temperature add in the milk’s.. flavors and nuts is added. HTST . After boiling process. add GMC & CMC powder. A. flow diversion valve. 50000 ltr. at pundhra ) 31 .Mix plant ( pundhra) Mixing tank -2 no. When milk becomes cold then cream. Then this mixture is put into refrigerator for freezing process at18 c. Production facility available at Pundhra Plant. Turbo blender for dry mixing. online duplex filter.
B- ICE CREAM Freezing-pundhra 8 cont. freezer for ice cream and novelties production having different capacity. 2 fill and cap machine for cone and cup production. 5 Hardening tunnel for quick hardening of ice cream, novelties, cone, etc.
C- CANDY PRODUCTION-pundhra
2 Brine tank for manual candy production 1 cont. freezer 1 candy hardening tunnel
candy mould having diff. shape and volume- 125 no. Candy wrapping machine for pillow packing
D- AUTOMATIC CANDY MAKING MACHINE- pundhra Neumatic candy making machine cont. freezer wrapping machine for pillow packing with conveyor. E- SEMI AUTOMATIC CLEANING SYSTEM- CIP ( cleaning in place) F- RAW MATERIAL PROCESSING - pundhra Seiveing machine, nut cutting machine, Hot air oven, fruit processing
machinery, choclate preparation tank, chikky making machine, cake production facility. Bareilly plant details: In our unit we use modern sophisticated machinery for making high quality ice cream. We take utmost care during selection and processing of ingredients. In our mix preparation section we use latest machinery like Homogenizer and Pasteurizer, which ensure our commitment of producing good quality ice cream. We have very sophisticated imported homogeniger (capacity 3000 ltr /hr) and a automatic panel based Pasteurizer, which ensure food safety.
In freezing section we have automatic continuous freezers of capacity ranging from 300 lts/hr to 2000 lts/hr ice cream. We have our own raw material processing section which provide very pure and processed raw material to freezing section .In our raw material processing section we use ultramodern oven and machinery for heating and other treatment of fruits and nut which make all these very much safe for human consumption. For cone production we have fully automatic cone filling machine . We produce fully untouched cones.
As we are producing a very sensitive food product we take utmost care about cleanliness and hygiene of our plant. For cleaning we have a central. CIP system. We used to take plant for total CIP before and after every production shift and sterilize each and every pipeline ,pasteurizer, homozenizer, storage tank, freezer, balance tank and ice cream filler using steam. Every workers are trained for their work and they follow strict norms for cleanliness and hygiene during production of ice cream. All staff that work in production area is being daily checked for their personal hygiene. Every staff use to pass through a thorough medical check up after a fixed time interval to ensure whether he/she is fit for working in production department or not. Ice Cream is shifted from production section to dispatch section using FIFO SYSTEM. 1. Mix Section : Automatic homogenizer and pasterizer with capacity of 3000 liters of mis per hour. 2. Freezing Section : 9 Automatic continuous freezer capacity city ranging from 300 to 2000 liters of ice cream per hour. 3. Fruit Feeder : 3 Automatic fruit feeder for proper nut addition. 4. Raw material process: Cake production as well as a fully automated oven for proper heat treatment of nuts.
4 VARIOUS PRODUCTS OF VADILAL BIG CUPS Vanilla Ripe Strawberry 2 – in –1 Chocolate Chips Tuti Fruity Real Mango 35 .2.
Rainbow Fruit Bonanza Kaju Draksh Butter Scootch Kewra Jafrani Badam Pista Rajbhog (Ice Mithai) SMALL CUPS Vanilla Ripe Strawberry Super Vanilla Strawberry Special FAMILY PACKS 36 .
PLAIN FAVOURTIES • Vanilla • Ripe Strawberry • 2-in-1 CHOCOLATE ECSTASIES • Chocolate Chips/ FRUIT FANTASIES • Real Mango • Fresh Strawberry NUTTY DELIGHTS • Kaju Draksh • Butter Scotch • Real Kesar Pista • Jafrani Badam Pista ICE MITHAI • Rajbhog FROZEN DESSERTS • Snowy • Yummy Kesar Pista 37 .
• Yummy Mango Munch KING KONES • Pineapple Delight • Chocolate Drip • Yummy Butter Scotch • Chashmeshahi • • Prime Kesar Pista Almond Kulfi Cone KULFIES KULFI CORNER • Kesar Pista Kulfis • Chowpati Kulfi • Kewra Kulfi • Pista Kesar Roll Cut 38 .
DANDY CANDIES Pencil 39 .
Mango Juicy Juicee Orange Kaju Candy Litchee Dolly Orange Dolly Raspberry Dolly Mango Dolly One-up Chocobar Nutty Chocobar Chocolate Chocobar Soft Spot (Chocolate) Fantastic FROZEN DESSERT Bargain Best Chocobar Mango Tango Dolly 40 .
15 Cassatta Slice Cassatta (Cut) Sajan Sajani (Roll) Vanila Magic Strawberry Magic Mango Magic 41 .Fun Bhari Raspberry VADILAL SPECIALS Heart Throb Mini Sandwich Sajan Sajani (Roll Cut) Quik Sundae Easy Sundae August .
Party pack of Swiss Cake 42 .NEW INTRODUCTIONS 1. Tiranga Candy: 2.
Cookies & Caramel 5. Choco Cream (Chocolate Candy) 43 . Choco Rocherr 6.3. Chocochips Cookies 4.
5 INSTALLED AND UTILIZED CAPACITY Vadilal industries Ltd has informed the Company has embark upon further expansion and new project in its Ice-cream Division as under: The company has proposed to set up a new ice-cream manufacturing plant at Kolkata in the state of west Bengal ( instead of at Uttranchal as decided earlier ) with an installed capacity of 32000 Liters per day with a project cost around Rs 97.2. The company to incur capital expenditure to the extent of Rs 75.60 million for its ice-cream plant situated at Bareilly in the State of Uttar Pradesh towards purchase of new automatic 44 .40 million.
Candy machine and others machine for its various sections in the plant. 45 .
3.1 Organization chart of personal department Managing Director General Manager Senior Manager Deputy Manager Executive officer Assistant 46 .
Management of organization is management of human resources. No business enterprise can exist and function without employees.3.2 Introduction to Personnel Department a lot in terms of money but may generate alienation and frustration among employee Effective organization are not built merely on investment and but more so on the quality of their workforce. In modern business organization employee hold a key place in business. The success of business enterprise depended to a large extent on the willingness and ability of the organization yeas. 47 . their commitment to the goals of the investment made to organization and attract. train and retain superior human resources.
Rather Recruitment and selection forms the most important at vadilal group. Successful recruitment depends upon finding people with the necessary skills. people are a vital resource and they need to be managed as such. expertise and qualification to deliver organizational objectives and the ability to make a positive contribution to the values and aims of the organization. is no exception. Effective recruitment is central and crucial to the successful day-to-day functioning of any organization.3 Recruitment and selection Recruitment is an important part of any business’ human resource planning and Vadilal industries Ltd.3. The overall aim of the recruitment and selection process here is to obtain the number and quality of employees that are required in order 48 . In all business.
Recruitment and selection process consists of identifying the need for a job. will reduce costs. in the right place.for the business to achieve its objective. is crucial to organizational performance. defining The requirements of the most position and the jobholder. managed and retained. advertising the position and choosing the most appropriate person for the job. Indeed. Undertaking this process is one of the main objectives of management. 49 . After all having the right person. at the right time. The management understands this and therefore they believe that employees should be carefully selected. Recruiting employees with the correct skills can add value to a business and recruiting workers at a wage or salary that the business can afford. just like any other resource. the success of any business depends to a large extent on the quality of its staff.
It is the dire need for any organization today to have well-trained and experienced personnel and therefore it becomes necessary to provide training to both new entrants as well as existing employees.4 Training and Development In this fast moving world with constant changes and innovations in technology. Training and development function is definitely carried out in vadilal but on a small scale.3. However this time interval is not fixed. increasing career aspirations of employees and cut throat competition in the market. the training and development of employees have become necessary equipment in the overall development of the entire organization. The new employees are given some basic training and existing employees are given training after certain time period has passed. The most 50 .
For the development of executives. academic institution like IIM. The company sponsors such training courses for them. At VADILAL in-house training is not given rather the employees are sent outside the organization for their training. Nirma institute. they are allowed to attend various seminars. There is no formal provision of budget for training and development. Training of existing employees consists of training for those of sales force people only.M.commonly used method of training employees is – On the job Training.A. organized by any organization like A. special training programs. study special courses etc. etc. lectures professional meeting of national level. This training is given to both new as well as existing employees. The new entrants are trained on the job during their probation period ranges from three to six months depending upon the post and the job. 51 . Sales force people are trained by their Head of the department for two to three days but it is not systemic and is a kind of informal training given.
All such types of safety clothing facility provide to own employee for a doing a particular job. Dress facility Vadilal has an in dress facility.3. provide pent. cleanliness. and quality of food. vadilal has paid some amount given to the employee. Canteen management committees consisting of the employees also monitor the menus. tea and snacks. Transportation facility 52 . shirt and helmet. Medical facility When some making a accident in operational level and managerial level or other department in that case.5 Employee services Canteen facilities Canteens have been provided lunch.
53 . So good time keeping system play a main role in the organization efficient and also for achieving its targets.6 Time keeping system Time is also an important factor for the organization. 2.m. The Vadilal is providing the transportation facility. all the activities and job are to be performed in a particular pre decided time.m. with 30 min lunch break from 1:00 pm to 1:30 pm.For the convenience of the employees to reach and depart from the company. Weekly off’s shall be observed on Sunday. 3. Monday to Saturday 9:15 a. to 6:30 p. Second and fourth Saturday’s shall be observed as a holiday and other Saturday’s working hours are 9:15 am to 6:30 pm 3. The corporate office and all the other branch of vadilal limited will have the following office timings: 1.
it helps to identify the underperformers as well as star performers of the organizations on the basis of which the strength and weakness of the entire organization can be known. It proves very harmful to the H.R department of any organization in taking important decisions as to who should be promoted. incentives etc.3.7 Performance appraisal Performance appraisal is a useful tool to strength and weakness of the organizations of people. rating 54 . It depends on the organization at what intervals (yearly. half yearly. whatever any employee is to be considered for promotion. quarterly) should the performance appraisal like self-appraisal. increment.
The employees are given appraisal forms to be filled by them as well as to be filled by their superiors in which one make their comments for the consideration by the H. The method of performance appraisal adopted by the management here is 180-degree performance appraisal. Job knowledge interpersonal 55 . However this is applicable for the existing employees.e. For the new recruits. But selfappraisal governs the other methods i. performance appraisal is undertaken at the end of their probation period or at the end of six months from the date of their joining in the organization which ever is earlier. So ultimately the employee’s performance is judged on the basis of their self-appraisal. It takes place in the month of the September-October every year. appraisal by superiors and rating of employees is done in few cases. Performance Appraisal. This 180 degree appraisal includes self appraisal as well as appraisal by the superiors of the employee.R department these forms can also contains factors like productivity. Also rating scale method of appraisal is used. is conducted on yearly basis. at Vadilal.scale method ranking method narrative method or the latest 360degree performance.
Fairly good average below average. very good. on which each employee is rated accordingly on parameters like-outstanding . The main objectives of the performance Appraisal are:• To review the performance and set the goals for future • To provide the feed back if it is necessary counseling • To asses the capabilities and provide guidance However performance appraisal is mainly conducted for making decisions about pay rise of existing employees and to decide upon weather to confirm the new recruits after their completion of their probation period. 56 . This performance appraisal forms are narrative nature it asks the employee questions likeAssignment that gave satisfaction or dissatisfaction from the job etc. it also includes comments or suggestions of the superior on the responses given by employees. good.relations decision making leadership etc.
3. 57 .8 Grievance handling process Grievance handling is the most important task in any of the organization its needs a healthy and peaceful atmosphere for the success of the organization all the type of the grievances are taken very delicately in the company firstly the grievance is communicated to the supervisor then the supervisor to the manager and if the problem is not solved then it is communicated to the union leader of the company and after the keen observation of the matter the decision is taken on the basis of facts efforts are made to find a sober way and in this way the problem is solved without harming the organization and fair justice is done to the employees.
3. If it is the peak season company needs extra labors. SALARY: In Vadilal industries ltd. “Wages” usually refers the hourly rate of daily paid for the service of labors in the production. They are giving as per the regulations of government “Salary “normally refers to the weekly or monthly rates paid to derive.9 Salary & Wages Administration WAGES: The wage and salary determination is fixing per unit (per day. they need more labors. per month or per annum) and calculate the total wages by multiplying the number of unit with the rate per unit time. 58 .
” Generally in any organization promotion is based on two ways.10 PROMOTION & TRANSFER PROMOTION “Good promotion is the perfect way to motivate the employees.3. past data about the work. Seniority 2. Management of company observes the performance of employees. Merit In Vadilal industries ltd promotion decision taken by management. 1. After that if management feels that 59 .
TRANSFER: In Vadilal industries ltd. one plant to another as per company’s requirement and employee’s demand. 60 . One shift to another shift. When there is an over staffing Company gives transfer to one department to another department. one section to another section. transfer policy is based on three conditions. When there is recognition 3. When there is storage of manpower 2. 1. Generally in Vadilal industries ltd after three-year promotion will be gives to the employees.employee for that is perfect for the promoted job then only company gives promotion.
1 ORGANIZATION CHART MARKETING MANAGER ASSISTANT MANAGER AREA MANAGER SALES EXECUTIVE 62 .4.
” “Marketing is a societal process by which individuals and groups obtain what they need want through creating. offering and freely exchanging product and service of value with each other. communicating. these are very well known brand in every nook & corner of the country with a strong brand image and high brand recall.” Brand Promotion: Basically.2 MEANING “Marketing is an organizational function and a set of process for creating. 63 . and delivering value to customer and for managing customer relationship in ways that benefit organization and its stake holder.4.
which covers our entire distributor network. Divya Bhaskar & Sandesh in Gujarat. Vadilal has one of the widest 64 .) and done TVC in leading TV channels like Star Plus. Sales Network: Vadilal has very strong sales network. Dainik Jagran & Amar Ujala in U. Rajasthan Patrika & Dainik Bhaskar in Rajasthan. Danglers. However. and by providing Publicity material (Glow signs. institutions. Nick. Cartoon Network. consumer schemes etc. & Uttranchal. Here advertisement in leading National (Hindustan Times. They have a state wise sale team. they take Models for our Product & Brand Promotion. Posters. Sponsoring Events. they have a sales team network. as well as TV commercial to cover maximum consumers.) as well as popular Vernacular Dailies (like. Here for Sales Company’ management plays major role like providing various Dealer schemes. Times of India etc.P. etc. Star News. Hotels & restaurants. Gujarat Samachar.) at our Retail Outlets.. They basically look forward to print media as main stay to promote our brand & for the advertisement of our products as well as schemes / offers.They generally promote their brand through various ways like. At present no any celebrity connected with Ad Campaigns. Advertisement. Banners etc. which generates sales through retail outlets. UTV and Hungama etc. Functions.
ISO 9001:2000 and BRC Global Standard. More sales are generated through new product developments. Plants: Ahmedabad Pundhra. and milk bars. in smaller quantities from ice cream shops. Gujarat and Bareilly. schemes and lucrative dealer margins. UP Above three plants are located in geographically favorable areas with ultra modern production facilities. Distribution Network/ C & F Agents: The reason for having strong distribution and dealer network is due to the lucrative margin and returns that Vadilal provides to them. convenience stores. and in individual serves from small carts or even at public events and places. more than 500 Distributors and over 40. It is our quality traditions and stringent norms only due to which our plants are accredited with world’s most trusted quality standards like ISO 22000:2005.C&F – Distributor – Dealers – Consumers With supply chain of about 23 C&FA.000 Retailers ice cream is widely accessible in most parts of India. Ice cream can be purchased in big tubs and surrounds from supermarkets/grocery stores.ranges of consumer schemes in the industry. Network: Plant . Vadilal 65 .
Primary customers Secondary customers 66 . 4. POP. Display sing broads. etc promotional material that helps for in boosting business. The certain product planning refers the product should be marketed in which manner and style and what quantity this determine the market share and earning.3 PRODUCT PLANNING Product planning is one of the most effecting factions in marketing department. VADILAL is doing the product planning by collecting the information from the market they get information from the two type of customer.provides them deep freezers for storage of ice creams.
For the product planning the VADILAL is taking the data given by the primary customers. 67 . agent.The primary customer’s means that purchase the product directly from the VADILAL like dealer. The secondary customer’s means that purchase the product from the primary customers.
4 ADVERTISING Advertising is play very important role in any unit of business. television. postage and direct E-Mail success of marketing programmed legally depend on advertisement. Advertising is paid from of communication. cinema. The advertising is done by mainly 2 ways. holdings. film. magazines. radio. outdoor. It includes the reader’s buyer’s viewer and listeners to buy a product or to get favorable upon products.4. 68 . Today more popular media to give advertising news paper.
The reason is that now days. 69 . Television News paper Since last two years. The Newspaper is the easier and cheaper way to convey the promotional schemes. VADILAL prefers Newspaper for their advertising. Companies are coming with different promotional schemes in different states. the television-advertising share has been shared and Advertising through Newspaper has spurted.
4. Instead if competing everywhere. the cost can focus on the buyer whom they have the greatest chance if satisfying. and then target on o more of there segment and develop a product and marketing process tailored to those segments. 70 . Company has segment and targeted consumer marketing on the basis of the following variable. Thus instead of scattering their marketing effort.5 MARKET SEGMENTATION & TARGETING A company cannot serve the entire customer. The company has to identify the marketing segment that it can serve must effectively. In the marketing as they are too numerous and diverse in their buying requirements.
Under full cost pricing no scale is made at a price lower then the covering total cast including the variable cost including the fixed cost. For example: X X+Y Cost of production Cost of goods sold to VEL 71 . Geographical segmentation Demographic segmentation Psychological segmentation Behavioral segmentation 4. 1) Policy on pricing relative cost: Vadilal follows full cost / cost plus pricing. for states where their manufacturing plants are situated.6 PRICING POLICES The pricing polices followed by the Vadilal are as below.
Example: X+Y+Z margin X+Y+Z (12% to 20%) margin Distributor’s margin + dealer’s margin Cost of goods sold + C & F agent’s Cost of goods sold + C& F agent’s 72 . Here. the margin of the C & F agent added to the MRP of the ice cream.X+Y+6% Margin X+Y+6 %+( 12%TO20%) Value = MRP cost of good sold+ Distributor Dealer margin added to above (consumer price) 2) Geographical Pricing: Vadilal charges extra penny as geographical pricing from the state where the manufacturing plants are not located. Also the distribution cost is higher for such states so these states have to pay somewhat higher charges for the vadilal ice cream.
As shown the manufacturer and C & F agents are handled by the VIL. dealers and customers are the responsibility of the VEL.4. 73 .7 CHANNEL STRATEGY The above channel strategy defines the channel member and whether they are part of VEL. where as serving the distributor.
4.8 ORGANIZATION CHARTS OF DISTRIBUTION CHANNEL Factory Production C & F agents Distribution Wholesalers Retailers Customers 74 .
1) Selective distribution: Selective distribution means selection only those outlets/retailers that can best serve the manufacture’s interest.9 DISTRIBUTION INTENSITY There are basically three types of distribution intensity. 3) Intensive distribution: The manufacturer following the policy of mass distribution or intensive distribution aims for the maximum sales exposure by securing distribution 75 . 2) Exclusive distribution: Exclusive distribution means distribution of manufacturer’s product or products within particular area is to be confined solely to the retailer with whom the manufacturer had made written or oral agreement of distributing the product/products.4.
Scooping Tips For perfect scooping. start from back edge and draw the scoop toward you as you skim the surface. Serving Tips Before serving. turn and lift the scoop away from the pack and gently press it against a dish or cone to release it.through all those outlets from which customers might expect to purchase the product/products. Health Tips 76 . Storing Tips Vadilal products are best stored unopened at (-)18 deg C or below. Vadilal ice creams should be allowed to soften slightly for best results. This way Vadilal is getting maximum business. VADILAL has adopted the intensive distribution to have maximum sales by availing ice cream at the nearest location to the customer. When a well-shaped ball has formed. Following are the different tips for distribution by the company.
• Frozen desserts to keep you slim and trim: Bilumia and anorexia are as common words as "Samosas and Rasgulla" in this health conscious world. Follow the guidelines below to ensure that to keep your Ice Cream at it best. Make sure you take ice-cream home as soon as possible do not plan other shopping when you have ice cream on board. New generation is becoming slim and slimmer and everyone is counting the • calories of food intake. If required. Always make ice-cream the last item you choose in the supermarket so it does not melt while you choose the rest of your goods Take a thermal bag or picnic box with ice pack when you shopthis will protect the product until you get it home. After this the consumer has a part to play in ensuring that their Ice cream is in peak condition when served. of ice cream throughout the distribution chain so that it maintains excellent quality up to the point of sale. one should drink pot water only after having ice cream. • • • • • 77 . Safe storage and handling • All Ice-Cream manufactures and retailers have to carefully control the temp. Now you can have frozen dessert product and can keep your body slim and trim.
But. make sure to return the tub to the freezer as soon as possible before it has chance to melt. Gujarat and monsoons do not go hand-in-hand though the State is still chary of admitting that it is faced with a drought-like situation.. • When you serve ice-cream and only take a few scoops from a large tub. in the 78 . Ice cream should not be kept indefinitely. • • • Current Trend: CUSTOMARILY.e.frozen. If you wish to protect the quality of the ice cream by preventing air getting to it. scrunch up a few pieces of greaseproof paper and put these on top before replacing the lid.• When arriving home give ice cream priority when unpacking the shop put it straight in to the freezer and make sure your freezer reaches low enough temperatures to keep the product. the scant rains have not stopped the ice-cream majors from declaring the arrival of monsoon here. Follow the star marking in relation to the freezer you have. >Ice crystals in ice cream show that it has been badly kept i. If you detect ice crystals you should throw the ice cream away and buy more. it has been allowed to thaw and then been re.
4 million liters each. neither of the brands has actually reduced prices. with a 24. much to the delight of the customers. Amul.8 million liter per annum in the organized sector has reasons to put the turf war in Gujarat under the microscope. with 13. but the freebies have been coming thick and fast. With HLL's Kwality Walls (22. competition between the two could not have got any closer in Gujarat. One 79 . The Rs 525-crore Indian ice-cream market with a sale of 80. However. Here.process signaling a price war of unparalleled intensity. most of the flavors are now available in `twos'.61 per cent market share at 11 million liters. Naturally.8 million liters sales and 28. it is 22 per cent of Amul's volumes that is pitted against 40 per cent of Vadilal's — both fetching up at 4.75 per cent share of the all-India market at 20 million liters and Vadilal.22 per cent market share) having virtually opted out of Gujarat. it is no wonder that Vadilal and Amul are engaged in a slugfest in the State. may not be an even match elsewhere. Taking a leaf out of the goodies on offer from the branded apparel sector and footwear to name a few items.
Gujarat is our single largest market.would now get two units of quite a few flavors for the price of one. has now brought it down to Rs 45 for the monsoon season. "Normally. According to Mr S. is that its ice cream has a milk fat base as against vegetable fat used in the `frozen dessert' by its competitor. Keraleeyan. while offering 50 per cent extra on pineapple." Mr Keraleeyan said. Product Manager. in effect cutting the price by half. Vadilal Ice cream. accounting for 40 per cent of total sales. and Rs 3 each off on Chocobar and 100 ml cups. Thus. chocochips. Vadilal has targeted a turnover of Rs 96 cr for this fiscal as against Rs 77 cr in 2000-01. 80 . The schemes on offer this year have ensured that we reverse the slide by over 50 per cent. The other goodies on offer include a `combo-pack' of vanilla (1 liter) and kaju draksh (1 liter) at Rs 100. Rs 5 off on cones. Vadilal has offered `one plus one' in the liter versions of mango. the freebies have ensured that the monsoon months will not be bad after all. butterscotch and fruit bonanza. Amul. of course. The main pitch by Amul. already competitively priced at Rs 60 per liter for vanilla. there is a major dip in ice-cream sales during July and August. butterscotch and kaju draksh (nuts 'n grapes). which is one-third cheaper.
Expansion Planning: Vadilal to invest Rs 40 cr to expand ice cream. be it day or night . The company earlier planned to set up a new manufacturing facility in Uttranchal. Surat and Rajkot . But after the Union Budget scrapped excise duty on ice-cream. "Under the changed circumstances. food biz Vadilal Industries Ltd will invest Rs 40 cr this year to expand existing manufacturing capacities at its two ice-cream and processed food plants in Gujarat and Uttar Pradesh and the proposed third unit in West Bengal before the year end. instead you console yourself by having one more ice-cream. it would not be prudent to have a new manufacturing facility so close to Bareilly in Uttar Pradesh. the ice-cream capital of India and the other major cities of Vadodara.Clearly. Ahmedabad. the company recently decided to set up the plant at Kolkata." Vadilal's Managing Director Mr Rajesh Gandhi said. not known for brisk ice-cream sales in the wet season. the price war seems to have rejuvenated the Gujarat market. as it was a no-excise region. 81 . here you do not step out for a drink in a pub or bar.remember.is sitting up in anticipation of a long `monsoon season' ahead.
He told Business Line that the company has instead decided to expand the Bareilly plant's capacity from 60,000 liters to 90,000 liters a day. The Rs 200-crore Vadilal Group's second plant at Pundhra, near Gandhinagar in Gujarat, has a capacity of 85,000 liters per day. The Kolkata plant, with a capacity of 35,000 liters a day, is being set up at a cost of about Rs 9.75 cr, he said.
Processed food biz
The company is also expanding capacity at its processed and frozen food plant at Dharampur in Valsad district of South Gujarat to one lac kg per day. This plant, started as a horticulture processing industry in 1991, manufactures ready meals and fruit pulp, besides preserved vegetables and fruits, the majority of which is exported to fetch about Rs 25 cr per annum, Mr Gandhi said. The total investments in the Bareilly, Dharampur and Kolkata plants would amount to Rs 40 cr, he said. The company has been awarded the ISO 9002 certification for quality systems. Although Amul recently emerged as the largest ice-cream brand in India, Vadilal claims to be the largest brand in Gujarat, with about 80
flavors and 70 per cent market-share; its national share is 25 per cent in an industry worth about Rs 800 cr. If Amul turned Anand into the `milk capital of India', Ahmedabad has emerged as the ice-cream capital over the last two decades with several players entering the fray. Ice-cream is consumed across all age-groups in the city round the year. The 70-year-old Vadilal Group has three companies listed on the Bombay Stock Exchange (BSE) — Vadilal Industries Ltd, which manufactures ice-cream and frozen food, Vadilal Enterprises that markets food products and Vadilal Chemicals Ltd dealing with specialized industrial gases and other chemicals. The group is also involved with real estate and construction business, forex advisory services and full-fledged money changer (FFMC) services, offering non-banking financial services.
& Managing Director Rajesh R Gandhi Devanshu L Gandhi Managing Directors C M Maniar 85 : .5.1 INTRODUCTION Board of Directors Ramchandra R Gandhi Chairman Virendra R Gandhi Vice-Chairman.
Ahmedabad. Mehsana. (Gujarat) Village Pundhra. Ahmedabad. Navrangpura. Bareilly. 86 . (Gujarat) Forex Division: Vadilal House. (Gujarat) Parsakhera Industrial Area. Valsad. (Utter Pradesh) Processed Food Division Dharampur. Mansa. Factories: Ice-cream Division Dudheshwar Road.M N Vora Kshitish M Shah Rohit J Patel Directors Nikhil Patel Company Secretary .
1) What total value of funds should be invested in the business? 2) What specific assets should the business require? 3) How should the required funds be raised? The scope of financial management comprises traditional approach on procurement of funds rather than its allocation and use. clears with financing every businessman keeps separate records of financial matters. While modern approach 87 . Financial management is mainly concerned with finding out rational basis through answering following three questions.Any organization. whether it is small or large scale. Finance and account department of the business depends upon the financial policy of the firm.
The firm may have any objectives but financial management has the objectives of profit maximization or weather maximization.covers not only acquisition but also allocation and utilization of funds. Keeping in mind this particular objectives only major 3 decisions are taken that are: • Investment Decision • Financing Decision • Dividend Policy Decision 88 .
2 FUNCTIONS OF F & A DEPARTMENT o To make payment o To receive payment o Accounting of transactions as per o Accounting standards published by institutive of chartered accountant. Packaging materials. o Company’s significant accountancy policy o Master chart of account Preparation of Budget viz. spare parts 89 . Revenue Consumption/ Expenditure Budget Procurement of Raw material..5. general stores.
Quarterly. budget o Capital Budget Advances to employees for HBL & Conveyance advance Budget Submission of Management Report Provisional Monthly Report Inventory Report Standard cost vs. Actual Cost Variance Report Revenue / Capital Budget Status Report Monthly.etc. etc. P & l account. Yearly Balance Sheet. o To get the account audited by Internal auditors Statutory auditors o To arrange fund Daily forecast Weekly forecast Monthly forecast Quarterly forecast Yearly forecast 90 .
Bill inward register SRV register W. o Stores section Control of inventory Booking of receipt of inventory based or SRVs Booking of consumption based on SRVs Physical verification as per 91 .e. adjustment register CWIP register MIC register etc.O.Various sections of F & A department and their roll of function o Bill section Making of Payment Accounting of Transaction i.
Pay roll & Establishment section Employees related payments like salary & wages advance for expenses. identification of obsolete items and adjustment there of as per H. HBL. guidelines. B. LTC. 92 .A.O. Writing of cashbook / bankbook / bank reorganization etc. Preparation of cherub. o Cash & Bank section Arranging of fund as per the requirement of different sections. C. Conveyance o Insurance section To renew policies from time to time. Analysis Maintaining of PSL Review of slow / non-moving items. Achievement etc. TA / DA Medical Reimbursement.
Significant accounting policy 3. o Books Preparation of monthly / quarterly / yearly accounts.To ledge the claim in the event of occurrences. o Books of accounts 1. Accounts manual 2. Getting the audit of accounts. Submitting of actual cost data on yearly basis. Getting of tax audit etc. Co-ordination with auditors. Analysis of financial ratios and Pay back period. To purchase the claim and get the settlement. Guideline on closing of accounts 93 .
4. 12. Master chart of accounts 7. Cash-books 10. General guideline 5. 11. h) Review of ratios i) Solvency ratios vs. Maintaining chart of accounts 8. Bank-books Journal Books Ledger a) Financial reports b) Trial balance c) Bank reconciliation d) Profit & Loss account e) Balance sheet f) Cost of production g) Actual variance variation. Power of officers 6. Budget/Standard with reason cost for report 94 . Maintaining of primary books 9.
3 FINANCIAL PLANNING Planning is pre-requisite for managing any little things too.j) Profitability ratios k) Turn over ratio (stock ratio) l) Service ratio 5. Financial planning answers the following questions: - o What should be funds requirements? o How should procure funds? o From where to procure the funds? o How to utilize the fund at maximum level? 95 . financial planning comes at first. When we think about fund.
So. 96 . In IFFCO. they make weekly forecast of funds in which requirement of each department is mentioned.Head office deals with the arrangement of raising the funds and provides funds required by any of four plants. After that the proposal is sent to head office and got sanction from there. financial planning has a significant place for making decision of requirement and utilization of funds.
bills payable. short term investment in treasury accounts and accrued income. creditors. Normally short-term refers to an accounting period. and any other liability due for payment 97 . prepaid expenses. Current assets are assets held on a short-term basis.4 RATIO ANALYSIS Current Ratio Current ratio is the relationship between current assets and current liabilities. income recorded in advance. Current liabilities include. Current liabilities are obligations that are payable within an accounting period. debtors. work-in-progress and raw material).5. bills receivables. inventory (finished goods. These assets include cash and bank balances. cash credit and overdraft from a bank for a short period and liability for expenses.
839 .5 1.839:1 whereas in 2006-07 it decreased to 1.244:1 98 576. However. Higher the current ratio better it is as it signifies higher liquidity. In 2005-06 it was 1. Current Assets Current Liabilities 2007-08 = = 2006-07 = = 2005-06 = = Interpretation: A current ratio of 2:1 is generally considered to be acceptable.during the current accounting period.3 1.9 508. this rule of the thumb varies from industry to industry.6 397.0 1.5 273.136 494. Current ratio is calculated by dividing current assets by current liabilities.244 502.
Though it is showing reduction Y-O-Y. This ratio realizes that some of current assets are not easily convertible to cash e. The quick ratio. The quick ratio is calculated as follows Current Assets – Inventory Current Liabilities 2007-08 333.0 0.136:1 in 2007-08. but the current ratio is still on a satisfying position for the investor.655 2006-07 317.g. inventories. also referred to as acid test ratio.and further reduced to 1. it ignores stock).e. examines the ability of the business to cover its short-term obligations from its “quick” assets only (i.3 99 .1 508. Quick Ratio Measures assets that are quickly converted into cash and they are compared with current liabilities.
5 0.3 1.655 almost 50%.125 It is clear that this ratio will be lower than the current ratio.125 to 0. using only the most liquid assets.397. This is shows risk for the investors who are ready to invest in the company. In the year 2005-06 it was above standard but in the next two years it had fallen below the standard consecutively. but the difference between the two (the gap) will indicate the extent to which current assets consist of stock.8 273. Net Working Capital 100 .798 2005-06 306.though it shows negative trend from 2005-06 to 2007-08 which reduced from 1. Interpretation: This ratio indicates the ability to meet short term payment. the standard ratio is 1:1.
Loans are often tied to minimum working capital requirements. It is calculated as shown below: Net Working Capital Total Assets Bankers look at Net Working Capital over time to determine a company's ability to weather financial crises. The result of this calculation must be a positive number.8 174.7 0.9 976.Working Capital is more a measure of cash flow than a ratio. 2007.098) 101 .2) 821 (0.18 2006-07 (80.
5 846. Comparison of your business ratios to those of similar businesses will reveal the relative strengths or weaknesses in your business.1 0. The Gross Margin Ratio is calculated as follows: Gross Margin Ratio = Gross Profit / Net Sales 102 .2005. which shows a positive move of the company by reducing the current liabilities.04.04 Interpretation: The Net Working Capital Ratio in the year 2006-07 was in negative. It measures the percentage of sales remaining (after obtaining or manufacturing the goods sold) available to pay the overhead expenses of the company.6 33.098 due to more current liabilities than current assets but in the year 2007-08 it raised to 0. GROSS MARGIN RATIO This ratio is the percentage of sales left after subtracting the cost of goods sold from net sales. -0.
7 / 1210.1 0. company is concentrating on the cost reduction. It provides a good opportunity to compare your company's "return on sales" with the performance of other companies in your industry.2007. except income taxes. It is calculated before income tax because tax rates and tax liabilities vary from 103 .2 0..068 Interpretation: The gross margin ratio is showing increase Y-O-Y which means the COGS of company is reducing every year.8 366. i.3030 2006-07 284 / 982.e. NET PROFIT MARGIN RATIO This ratio is the percentage of sales dollars left after subtracting the Cost of Goods sold and all expenses.290 2005-06 71.8 / 1049.4 0. It means the profit of the company will increase in the near future too.
5 / 1049.076 2006-07 52. The Net Profit Margin Ratio is calculated as follows: Net Profit Margin Ratio = Net Profit before Tax / Net Sales 2007. making comparisons after taxes much more difficult.4 0.3 / 982.012 Interpretation: The net margin ratio shows that the margin is increasing year on year which shows that the increase on sales had too increased the EBT of 104 .053 2005-06 12.2 0.company to company for a wide variety of reasons.1 0.9/ 1210.8 91.
The more efficient the production. It was only 0.053 in the year 2007-08 which further increased to 0. the more profitable the business. This is an important ratio for all readers of financial statements.the firm. Investors have placed funds with the managers of the business. they will instruct the managers to sell the assets 105 .076 in the year 2007-08. The rate of return on total assets indicates the degree of efficiency with which management has used the assets of the enterprise during an accounting period. The managers used the funds to purchase assets which will be used to generate returns. If the return is not better than the investors can achieve elsewhere. RETURN ON INVESTMENT (ROI) Income is earned by using the assets of a business productively.12 in the year 2006-07 which increased to 0.
and they will invest elsewhere.1 0. The managers lose their jobs and the business liquidates.6 / 976.0 / 846.8 57. ROI = PAT / TOTAL ASSETS 2007. In the year 2005-06 it was 106 .1 / 821 0.7 0.015 Interpretation: The ROI chart shows the positive trend which shows that the management is using the assets efficiently.039 2005-06 13.059 2006-07 32.
The firm has to plan for both short-term and long-term obligations.059 in the year 2007-08. Now we extend an analysis to long-term liquidity. Now we extend an analysis to long-term liquidity. Long-term liquidity means ability to meet long-term commitments or obligation. Some payments have short-term maturity and some have long-term maturity. Long-term liquidity means 107 . We have analyzed short-term liquidity of a business enterprise in the previous section. Long-term lenders are primarily interested in this type of analysis. Almost 4 times in the time period of two years.015 which increased to 0. The firm has to plan for both short-term and long-term obligations. We have analyzed short-term liquidity of a business enterprise in the previous section. DEBT TO EQUITY RATIO: The term solvency implies the ability of the enterprise to meet its obligations on the due date. SOLVENCY RATIO The term solvency implies the ability of the enterprise to meet its obligations on the due date. Some payments have short-term maturity and some have long-term maturity.only 0.
if any. securities premium account balance and all other reserves and surplus available for equity share holders.ability to meet long-term commitments or obligation. Long-term lenders are primarily interested in this type of analysis. It includes debenture. Much is the stake of owner’s as compared to those who have given long. miscellaneous expenses and debit balance of profit and loss account.5 0. general reserves.392 2006-07 100. Debt to equity ratio Debt Equity 2007.8 129 / 329 0.5 108 . Equity (also called shareholder’s funds) includes equity share capital. For the computation of equity. long-term loans from banks and financial institutions and public deposits.9 / 263. capital reserves. Debts are long-term liabilities having maturity after one year. preference share capital.term loans.7 0.5 / 283. are to be deducted.354 2005-06 131.
If it is higher it shows the debt employed by the firm is more than equity which increases the interest burden and reduces the profit of the company as well as the shareholders too.81 =57. The higher the ratio.392 in the year 2007-08.59 3300. the stronger the 109 .77% and in 2007-08 the proprietary ratio was 57.Interpretation: This ratio as discussed earlier gives the idea of having employed the number of times debt against each rupee of equity. In the year 2005-06 the debt employed by the firm was almost half of the equity but it reduces to 0. Proprietary Ratio: The ratio shows the probation of proprietors funds to the total assets employed in the business.93%.93% Interpretation: In 2006-07 the proprietary ratio was 58. Proprietary Ratio: Proprietary Assets x 100 Total Assets 5697.
Proprietary Ratio: Debtors + Bill Receivable x 365 Credit Sales Credit Sales 2006-07 = 280178687 x 365 1864885457 = 55 days = 362848990 x 365 2288612585 2007.financial position of the company.8 110 . so it is desirable for the company. It is a measure of credit period enjoyed by the customer. but company need to improve this ratio Debtors Ratio: The ratio shows the number of days taken to collect the dues of credit sales.
As compare to the ratio of 2006-07. This indicates the efficiency of the collection department. In 2006-07 the debtor’s ratio was 55 days and in 2007-08 the ratio was 58 days. the ratio of 2007-08 increased so it is unfavorable situation for the company. The ideal debtor’s ratio is 45 days. 111 .= 58 days D EBT R R IO O S AT 59 58 57 56 55 54 53 58 55 1 2 Interpretation: A shorter collection period indicates prompt payment and reduction of bad debt. Similarly a longer collection period indicates the risk of bed debt.
The number of days within which we make payment to our creditors of credit purchases is obtained from creditor’s ratio. Proprietary Ratio: Creditors + Bill Receivable x 365 Credit Purchases 2006-2007 = 270464462 x 365 665132302 = 148 days 2007-08 = 362462500 x 365 838357005 = 158 days 112 .Creditors Ratio: In indicates the months. It is a measured of credit period enjoyed by the producer. days or week in which the amount is given to creditors and bills payable.
CREDITORS RATIO 160 155 150 145 140 1 2 148 158 Interpretation: In 2006-07 the creditor’s ratio was 148 days and in 2007-08 the creditor’s ratio was 158 days. It is the most important ratio from the view point of mgt. and the ratio of 2007-08 is increased by 158 days. Return on capital employed: It is an index of profitability of business and it obtained by comparing net profit with capital employed. As compare to the ratio of 2006-07 is 148 days. Return on capital employed: Net Profit (before) x 100 Capital employed 2007-2008 = 33726866 x 100 1690654599 113 . So it is good for the company.
99% Fixed Assets turnover ratio: To ascertain the efficiency and profitability of business. it means that fixed assets are not adequately utilized in business. the total fixed assets are compared to sales.31 Times 2007-2008 = 2288612585 1354221542 114 .= 1. the more efficient is the use of fixed assets. It the sales are less as compared to investment in fixed assets. Fixed assets turnover ratio: Sales Fixed Assets 2006-2007 = 1864885457 1419705869 = 1. The more the sales in relation to the amount invested in fixed assets.
31 1. So it is favorable situation for the company. Earning per share: It is ratio expressed in monetary value that is rupees and paisa.= 1.69 times.69 Times FIXED ASSESTS TURNOVER RATIO 2 1. 115 .5 0 1 2 1.31 times and in 2007-2008 this ratio was 1. in 2007-2008. As compared to 2006-2007 the fixed assets turnover ratio was increased. better it is for the firm. Higher the amount.6 Interpretation: In 2006-2007 the fixed assets turnover ratio was 1.5 1 0. It indicates the amount of earning per share.
After paying them. Such expenses do not very with the operating profits. It results from the presence of fixed financial charges.F.49 Rupees so it is good for the company. They have to be paid regardless of the amount of EBIT available to pay them. FINANCIAL LEVERAGE: Financial leverage is related to the financing activities of a firm.L EBIT EBT 116 . 2007 D. Financial leverage is concerned with the effect of changes in ability of a firm to use fixed financial charges to magnify the effect of changes in EBIT on EPS.Earning per share: Net Profit (PAT) No. of shares 0/5 2007-2008 = 30965192 6899400 = 4. the EBIT belongs to the shareholders.49 Rupees Interpretation: In 2007-2008 the ratio was 4.
74700000 12300000 = 6.7 195.6 198.07 Implication of D.8 177. VADILAL has 6.8 31-Mar-07 31-Mar-08 117 .7 196.5 10.1 13. during 05 year.8 13.3 7. Balance Sheet Currency in Millions of Indian Rupees 31-Mar-06 Assets Cash & Equivalents Total cash & short term investment Accounts Receivable Notes Receivables Other Receivables Total Receivables Inventory 11.38 for 04.F.6 11.7 3 212.F.5 4.07 D.1 237.4 243.5 219.7 26.L.7 26.3 10.8 208.6 2.L. which is less in compare of 9. It show VADILAL eliminate them liability so it is sign of good sound condition of the company in present.
5 65.9 378.6 22.6 21. Non-Current 0 Deferred Tax Liability Non -Current 39.3 6.2 71.5 Unearned Revenue. Long Term Total Assets 86.8 8.1 303.8 16.8 Current Portion of Long Term Debt / Capital Lease 88.2 Comprehensive Income & Other 29 Total Common Equity 263.7 -290.8 494.2 42.7 118 .8 329 329 976.2 7.9 719.7 185.2 314.8 Total Liabilities & Equity 846.9 Total Current Liabilities 273.8 846.1 16.8 61.3 647.8 Total Equity 263.9 48.3 0.7 821 95 12.1 68.9 48.7 Liabilities & Equity Accounts Payable 90.1 77.3 Long Term Debt 268.1 3.2 576.1 25.5 46.2 Accrued Expenses 15.2 821 85.5 Total Liabilities 582.Other Current Assets Total Current Assets Gross Property Plant & Equipment Accumulated depreciation Net Property Plant & Equipment Long .5 537.7 283.2 976.2 508 92.3 Common Stock 71.8 397.5 64.4 32.5 -340.6 502.7 71.7 0.9 Additional Paid in Capital 48.7 Retained Earnings 114.5 88.Term Investments Deferred Charges.6 199.5 4.3 103.6 4.1 Current Income Taxes Payable 10.8 Other Current Liabilities 51.4 177.1 283.5 Short Term Borrowings 16.7 138.5 18.6 619 -315.5 604.9 Minority Interest 0.
2 0 982.4 977.1 0 1210.3 284 172.8 0 31-Mar-07 982.4 366.7 205.1 843.6 71.5 31-Mar08 1210.4 0 1049.2 698.INCOME STATEMENT Currency in Millions of Indian Rupees 31-Mar-06 Revenues Other Revenues TOTAL REVENUES Cost of Goods Sold GROSS PROFIT Selling General & Admin Expenses 1049.7 119 .
6 20.6 57.8 200 84 -29.9 34.7 0 -4.3 16.R & D Expenses Depreciation & Amortization Other Operating Expenses OTHER OPERATING EXPENSES.3 110.3 0 1. INCLUDING UNUSUAL ITEMS Income Tax Expense Minority Interest in Earnings Earnings from Continuing Operations NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS NET INCOME TO COMMON EXCLUDING EXTRA ITEMS 0 25.5 90.6 57.2 0 32.7 -6.8 -15.2 -4.1 32.2 -46.1 8.6 4.6 0 0 91.1 32.6 61. EXCLUDING UNUSUAL ITEMS Gain (Loss) on Sale of Investments Gain (Loss) on Sale of Assets Other Unusual Items.4 -42.7 -4.7 7.2 -22.2 0 0 52.1 0 -0. Total Other Unusual Items EBT.7 5.2 10.1 32.1 0.6 52 0 0.6 256.3 29.4 -31.3 0 57. TOTAL OPERATION INCOME Interest Expense Interest & Investment Expense NET INTEREST EXPENSE Income (Loss) on Equity Investments Currency Exchange Gains (Loss) Other Non Operating Income (Expenses) EBT.9 -2.5 -1.7 0.7 25 1.5 -24.2 12.3 20.9 1.6 57.9 1.5 -0.6 120 .6 0 13 13 13 13 0.
and expansion in the whole country. very large amount 121 . there are so many competitors of this company in their fields but due to their qualitative products. In the competitive world.LEARNING VALUE By doing the project on Vadilal limited. I have come to know about the history and also about the reason behind their success. better pricing policy.
122 . The distribution channel.of production & sales and great objectives of VADILAL limited is on the top most level in India in their fields. marketing popularity of their brands is in very vast term that it is spread over whole nation or world. By doing this project I have got an opportunity to examine myself and compare my knowledge about management industries etc. This company has achieved several or I can say lots of awards far their brilliant success in different areas.
and by this industrial visit. As a BBA Student it is compulsory for me to have the best possible knowledge about industries and about its internal affairs.CONCLUSION I have visited the VADILAL limited. Due to this industrial visit only I can get the benefit of visiting and adopting the knowledge by the famous and no: 1 company is very effective and good. The response of each & every department of company was very appreciable the department heads have provided the best possible information & have helped me by their best efforts. their products are of best quality. Practical experience is very essential for any of the management student. which many not are gained by the books only. and pricing policy is also very much appreciable and done after the study of each & every class of people 123 . I have learnt much about the industrial process.
Vanhorne John M.com 124 .vadilalgroup.BIBLIOGRAHPY Books: Growth and Structure of Industry Marketing management By: Philip kotler Fundamentals of financial management By: James C. investing. Wachowiez Human resource management By: Gary Dessler Magazine: Business world Search Engine: www.com Web sites: www.businessweek.com www.google.
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