Live project 1

MBA (Agribusiness MANAGEMENT)

BATCH: 2021-23

Topic – Study of Procurement, Processing & Marketing of

Homefills

SUBMITTED BY: GUIDED BY:

ASUTOSH NANDA - 21206009 PROF. SRILATA PATTNAIK
SUBHAM NAG - 21206062
SUBHAM RAY - 21206063
SAKTI SOURAV MOHANTY - 21206073
Acknowledgement

We in all humbleness and gratefulness want to acknowledge our depth to all those who have

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helped us to put these ideas, well above the level of simplicity and into something concrete.

we would like to express our special thanks of gratitude to our beloved Professor, Prof.
Srilata Pattnaik who gave us the golden opportunity to do this wonderful live project on
“Procurement, Processing & Marketing of Product by Homefills” which also helped us
in doing some research and we came to know about so many new things. we are really
thankful to him.

We would like to thank our friends and our seniors who helped us a lot in gathering different
information, collecting data and guiding us from time to time in making this project, despite of
their busy schedules, they gave us different ideas in making this project unique.

Thanking you

CONTENTS
Sl.no Topic Page no.

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 1 Company Profile 4

2 Mission & Vision 6

3 Product Portfolio 6

4 Business Activity 8

5 Our Role 10

6 Procurement 10

7 Processing 15

8 Marketing 20
9 STP Analysis 20

10 SWOT Analysis 21
11 4P Analysis 22

12 Questionnaire Survey & Response Data 23

13 SIDBI 25

14 Promotion 26

15 Marketing Channel Analysis 27

16 Key Learning 28

COMPANY PROFILE:

The company has registered under the name of Divya Multigrains pvt. Ltd. It sells it all its
product under a brand of Homefills in the market. It is basically a food and beverages company

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established under the supervision of Mr Bichitrananda Senapati. It is situated at Pahala,
Bhubaneswar, Odisha. It started in the year 2012 and it contains 11 to 50 employees. It has an
annual turnover of 10 – 15 crores and is gradually increase year by year.

ABOUT THE COMPANY:

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Unlock a multiverse of exotic spices with Homefills, a brand under Divya Multigrains, made to
deliver the most premium culinary experience to its customers. With an experience of over three
decades in the Spice domain, Mr. Senapati finally established Homefills in 2012, with a goal to
ensure that - "Homefills brings to you the best handpicked spices from the most exquisite farms
across India."

Today, Homefills offers a multifarious range of specially procured spices, handcrafted and
blended to perfection, super foods and food stuff that are not only aromatic essentials, but also
immune boosters and regulars that cater to all the Indian cuisines and make cooking a
pleasurable experience.

The satisfied customers and their trust is crucial to us and help expand and reach new customers,
who are looking for fresh and specially handpicked spices as they do not have to worry about
obtaining high-end ingredients anymore, making Homefills a gourmet delight. The spices and
food additives/ingredients are processed under stringent hygienic conditions to provide products
that retain their natural oils, aroma and flavour, making cooking easier.

Divya Multigrains select small batches of Spices, Pulses and Dry Fruits from the best of lot
across India, blend them carefully for a unmatched quality of flavour and aroma simply for the
best recipes. Sourcing high quality and authentic ingredients ensure the best material should
reach the customers without any compromise.

It basically used a tagline that “Homefills…… trust of purity as mother and child”.

MISSION & VISION:-

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MISSION - The aim to integrate and blend the finest species to add a new dimension to the
culinary world.

VISION- Customer’s each rupee spent on Homefills product should assure guaranteed
satisfaction.

PRODUCT PORTFOLIO:

Homefills has an array of over 300 product variants from different categories and are
successfully running in the market which ensures customers continuous trust and appreciation
towards it. The different pack sizes to choose from homefills is constantly making innovations
and successfully launching quality products. Homefills understands the value of the money and
that's the reason it gives the best quality products. The Company strives to maintain the quality
for which it has always been .

Product Categories are:-

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 Super
Spices Food Stuff
Food

Food Pulses and

Additives Wheat

I. Spices categories:

 There are 4 categories of spices:

1. Straight Spices - It means the spices which are converted direct in powder form, from a
single product like only Haldi, Chilli, cumin etc
The product are Chilli powder, Turmeric powder, Cumin Powder etc.

2. Whole spices - These are used in solid form, neither in mixed nor powder form like elaichi,
cloves, mirchi, jaiphal etc. (Gotaa masala)
The product are Elaichi, Jaiphal, Laung, Lal Mirchi etc
3. Blended spices - These are in mixture form of different spices which are converted into
powder form like chicken masala, tandoori, egg curry masala, jaljira etc.
The produst are biryani masala, curry powder, jaljira, tandoori masala etc
4. Ground Spices - These are mixture and powder form of wholes spices. Ex:, Dalchini powder,
black pepper(golmaricha) etc.
The product are mustard powder, garam masla

II. Other categories of products are:

1. Super Food – A nutrient-rich food considered to be especially beneficial for health and well-
being. The product are flax seed, pumpkin seed, basil seed, chia seed.
2. Food Stuff – A substance with food value specifically. The raw material of food before or
after processing. The product are - sattu, besan, raagi powder, sooji, dalia etc.

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3. Food Additives - Food additives are substances added to food to maintain or improve its
safety, freshness, taste, texture, or appearance. Food additives need to be checked for
potential harmful effects on human health before they can be used. The product are black
salt, rock salt, kasuri methi, tej patta, hing etc.
4. Wheat and Pulses - Pulses are the leguminous crop, that is harvested as the dry seed. It is a
cereal grain which is a used to make wheat flour. They basically use sharbati grains to make
signature sharbati atta. The product are kabuli chana,rajma,moong,urad dal, chana dal, chakki
fresh atta etc.

BUISNESS ACTIVITY:

The activity to fulfill the aim and objective of a company is called business activity. Business
activities, including operating, investing and financing activities.

It is basically divided into 2 parts primary and secondary.

BUSINESS
Primary Secondary
ACTIVITY:

Inbound
Procurement
logistics

Technology
Operations
development

Human
Outbound
resources
logistics
management

Firm
Marketing
infrastructure

Sales

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1. Inbound logistics is the process of receiving of raw materials or products from a supplier to a
warehouse. An effective inbound logistics program can result in higher quality products,
more cost savings and increased sales. It will also improve customer satisfaction, while also
reducing total overhead and waste materials.
2. Operations are the functions of a business directly related to providing its goods or services
to the market. It includes processing, packaging and others. Operations will generally provide
the majority of a company’s cash flow and largely determine whether it is profitable or not.
3. Outbound logistics is the process of shipping out of finished products to customers from a
warehouse or distribution center. It consists of the order fulfillment process including
picking, packing, shipping, and delivery of a package.
4. Marketing refers to activities a company undertakes to promote the buying or selling of a
product or service. Marketing includes advertising, selling, and delivering products to
consumers or other businesses. It boosts the sales of products and also to improve its brand.
5. Sales refer to a company's revenue earned from the sales of products or services. In
general business operations, sales refer to any transaction where money or value is
exchanged for the ownership of a good or entitlement to a service.

The secondary activities are the processes that are needs to boost he primary activities.

1. Procurement is the process of purchasing goods or services and is usually in reference

to business spending.
2. Technology development - The main role of technology in business is to drive growth and
improve operations. It improves business communication, optimizes production, inventory
management and financial record-keeping.
3. Human resources management- it is the process of employing people, training them,
compensating them, developing policies relating to them, and developing strategies to retain
them.it focuses on the function of people within the business, ensuring best work practices
are in place at all times.
4. Firm infrastructure refers to an organization's structure and its management, planning,
accounting, finance and quality-control mechanisms.

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OUR ROLE:

In our nine days visit to Divya Multigrains we have learned about the procurement, production
and marketing system that is being followed by the company. We have visited the distributors
and the outlets of the company present in the city. We have also made a depth study about its
distribution channel. We learnt that as dealing with species industries is a challenging work as to
provide the best packed spices would require the best raw materials procurement. After the
finished product is prepared how to maintain the price stability in the market, we came to know
from this visit. And how it also deals with its competitor also we came to learn.

PROCUREMENT:

Procurement is the term that is used to refer to the process or the act of sourcing or obtaining
services or goods for a business. Some businesses use the term procurement only to refer to the
actual buying while others refer to the entire process that leads up to the purchase as
procurement.

It is used to refer to buying for a business and is customarily performed on a large scale.
Procurement involves two companies; the buyer and the seller. But it is the act of buying that is
labeled procurement and not the activities of the seller. 

Procurement is usually a part of the input to a company that then uses the goods or services
procured in the making of their own final product. This makes it a very vital function of any
business. It is important to the success of the buyer’s business to procure the best quality of
goods or services procured at the most competitive rates. 

FCI, the nodal central agency of Government of India, along with other State Agencies
undertakes procurement of wheat and paddy under price support scheme. Coarse grains are
procured by State Government Agencies for Central Pool as per the direction issued by
Government of India on time to time. The procurement under Price Support is taken up mainly to
ensure remunerative prices to the farmers for their produce which works as an incentive for
achieving better production. 

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Before the harvest during each Rabi / Kharif Crop season, the Government of India announces
the minimum support prices (MSP) for procurement on the basis of the recommendation of the
Commission of Agricultural Costs and Prices (CACP) which along with other factors, takes into
consideration the cost of various agricultural inputs and the reasonable margin for the farmers for
their produce. 

Importance of procurement:

In the private sector, procurement is viewed as a strategic function working to improve the
organization's profitability.  Procurement is seen as helping to streamline processes, reduce raw
material prices and costs, and identifying better sources of supply.  In essence, helping to reduce
the ‘bottom line’.

As the Homefills mainly focuses on spices so procurement also plays a vital role in procuring
from the right source at the right time the right quality of materials in right quantity at the best
possible cost.

TYPES OF PROCUREMENT:

According to agriculture the types of procurement divided into 6 type

1. Single procurement
2. Stock procurement
3. Vendor managed inventory
4. Just in time procurement
5. Just in sequence procurement
6. Ship to line

Here the Homefills company is doing only on two types of procurement:

1.Stock 2.Just in time

Procurement Procurement
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 a. Stock procurement – Stock procurement means that goods are shipped to stock in
periodically defined terms without any specific order of a customer. When finishing the
production process, the goods will be stocked until the next order is received from the
customer.
Here they select the best vendor for procurement and never compromise in quality, they
buy in bulk and store in warehouse to avoid the shortage of raw materials which includes
wheat, chili, cumin, coriander etc.
b. Just in time procurement – Just in time procurement is characterized by low stock levels
at the customers’ company. This leads to a reduction of costs and to lean and balanced
processes
They are procuring raw materials in time to avoid wastage of raw materials, which
includes tulsi, and fenugreek leaf etc.

OBJECTIVES OF PROCUREMENT:

1. 1.Efficiency in quality
2. 2.Efficient price wise
3. 3.Efficiency of inventory
4. 4.Regular Supply
5. 5.Vendor Management
6. 6.Perfect utilization of resources

The company mainly focuses on 3 objectives:

1. Efficiency in quality: They visit different mandis in India to recognize the best quality.
So when the raw materials would be procured it should be best for the final output.
2. Efficient price wise: here on According to the quality the price is being decided and to
avoid any price fluctuation, systematic commodity procurement is done so that they can
get the raw materials at a perfect price of the optimum quality.
3. Efficiency of inventory: After the price decided the raw materials are being sourced from
the vendor and transported directly or indirectly to the warehouse for finalization of

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 product output. As the inventory plays a vital role during procurement, processing and
transporting of both raw materials and finished product.

SOURCES OF PROCUREMENT:

• Wheat (Sharbati)- MP, Punjab

• Turmeric (Haldi) – Kandhamal, Tamilnadu
• Chili – Andhra Pradesh, Karnataka (Kashmiri Mirchi)
• Pulses – Raipur, Kolkata
• Cumin (Jeera) – Rajasthan (Jaipur), Gujarat (Uljha)
• Coriander (Dhania) – MP, Rajasthan
• Flax seeds, Pumpkin seeds, Chia seeds, Elaichi – Kerala
• Tulsi – Puri

PROCUREMENT IS MAINLY BASED ON TWO TYPES:

• Quality: Here the totality of the arrangements made with the objective ensuring that the
products are of premium quality required for their intended use.
• Quantity: Here the optimum amount of raw materials are being procured is according to
the requirement to avoid the shortage.

Fig: Jeera Brand 666 & Brand 999

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Here we can see 2 types of jeera brand 666 and brand 999 the difference between these 2 is only
in the size.

PROCESS OF PROCUREMENT:

A. Vendor selection: - It is a most important part of process of procurement as selecting new

vendor is difficult without compromising the quality of raw materials. The process of
selection is done on basis of supply and quality of raw materials provide by the vendor.
B. Sample testing: - It is done to avoid compromise in the quality of raw materials. samples
will be collected from the new vendor for testing purpose on the other hand sample
collection n testing is not been done with the old vendor as they will always provide the
best quality.
C. Quality checking: - It is being done to get the info about the basis of moisture, size,
shape, taste etc. to maintain the quality of the raw materials so that ultimately the finished
goods will be the best.
D. Price comparison: - Price also plays an important part in procurement. The price
comparison is done between the old vendor and new vendor regarding the quality. On the
basis of transportation price is also compared as if the vendor has its own transportation
then the vendor may add all the taxes and transportation prices but in case if the vendor
does not have the transportation chain then the company has to bear the transportation
cost along with the taxes.
E. Transportation system: - It is of two types direct or indirect procurement.
In case of direct the cost of procurement will be less as bulk amount is purchased but in
case of indirect the cost of procurement is high as the purchase of raw materials is less
and the transportation system is being divided based on this.

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 (Transportation system) (Quality Checking)

PROCESSING:

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 Processing is important activity for the processing industries. Homefills is established as
Semi automated processing plant, in processing some activities has been done by manually like
cleaning, drying and packaging for product and some activities are done through machineries.
There are 75 to 120 no of skilled and semi-skilled manpower has been engaged per day for
processing activities. So for the company its is essential to manage the effective engagement of
the labor power to get the maximum output.

There are 3 type of processing has been done by the company. i.e

1. Whole spices, Pulses, food additives, superfoods

2. Ground Spices

3. Blended spices

STEPS OF SPICES POWDER PROCESS:

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For turmeric and chill powder roasting is not done and for these first it is grounded into semi fine
powder and convert into fine powder form. For making Atta and chickpea powder roasting is not
being followed.

1.CLEANING:

•Cleaning is really initial method which the procured commodities are clean manually by
removing impurities like stone, dust, and dirt to get the quality material.

2. DRYING:

For drying Sun drying is being followed. After cleaning method display the min daylight in order
that they dry, the quality of the spice powder can depend up on the well-dried spice. If correct
cleaning does not cope up, it will lead to the growth of bacteria, which is able to poison food it
will hamper the self-life of the spices.

3.ROASTING:

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Once spices are dried, they are going through the roasting method, the roasting of the spices is
important because it will facilitate to provide the aroma, color and good taste to spice powder.
Roasting generally being done by drum roasting machine. In this machine the drum is rotates so
all the grains of the spices are being roasted uniformly. For different spices different temperature
and time has been set and proper roasting will lead to good fine powder of the spices.

4.GRINDING:

Grinding machine is used for pulverizing & to convert into powder form. For grinding of the
chili and turmeric to get fine powder fist convert into semi fine powder and then convert into fine
powder. There are several machines being used for grinding purpose of different commodities.

There are 3 type of grinding machine is utilized by company, i.e

i. Grinding machine for Turmeric Powder

ii. Grinding machine for Spices
iii. Atta, Chickpea Powder

Grinding machine for spices Grinding machine Atta, Chickpea powder

5.SIEVING:

After grinding make sure that spice powder has a uniform mesh size to get the pure fine powder.
For check pea powder and Atta powder grinding machine sieving activities are done
simultaneously.

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 6. BLENDING:

The blending could be a process that is that the basis of the inclusion and proportion of spices
combine with their raw material used, additionally depends on the kind of spices (flavour), size,
shape, density, and colour.

7. PACKAGING:

Packaging is an important activity for the processing industries. A good and attractive packaging
will maintain the he self-life of the commodities and also enhance the customer attraction. Spices
add huge flavor, however to figure their magic, they have to be fresh, therefore correct packaging
is mandatory.

There are 2 type of Packaging has been done in this plant, i.e

1. Manual packaging is done for the 500 GM and 1KG size pack.

2. Machinery packaging is done for the 50 GM, 100 GM and small refile packs.

In machinery packing 2 type packing method has been used.

a. Cup Method of packaging is being done for the whole and ungrounded grains and spices.

b. Auger Method of packaging is being done for the grounded grains and spices.

Cup Method of Packing Auger Method of Packing Automated Box of Packing

PRINTING OF LEBELS:

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Automated machine is being installed for printing of the labels of the commodities like
manufacturing date, maximum retail price etc. Once all the inputs are given for the label the
printing activities is done automatic and semi-automated mode.

MARKETING

1. MARKETING DISTRIBUTION CHANNEL

FACTORY

DISTRIBUTOR
POINT(ODISHA)
/SUPER POINT (
RANCHI, BIHAR)

DISTRIBUTOR

RETAILER

CONSUMER

STP Analysis:

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Segmentation

They divided the markets into different segments based on several parameters. During
segmentation they mainly keeping 5 things in mind i.e. measurable, accessible, substantial,
differential, actionable. Based on demographic they segmented in age basis & family basis. In
age basis they make two category- child & adult. In family basis they divided into 2 parts, small
family (3-4 members) & large family (more than 7-8 members). In income basis they divided
into 2 parts, low income group & high income group. Based on geographic they divided into
several parts. Based on life style they divided into 2 parts i.e. high standard & low standard.

Targeting
After segmentation they target the particular segment. In income basis they produced
small 2-5 rupees pack for lower income group & big packet for higher income group. For hotel
& restaurant they are making big bulk quantity. In different region they are targeting with
different product. Like in coastal region they are targeting with non-veg spices especially fish
masala.

Positioning
Company is able to creates a strong position in customer’s mind for its quality products. It offers
more qualitative product for more value.

SWOT ANALYSIS
STRENGTHS:

 Widely accepted in all locations in Odisha.

 Easily available in various sizes.
 Provides wide range of Products
 Available in affordable price range.
 Good quality and packaging.

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WEAKNESSES:

 Doesn’t provide RTV or replacement.

 Low penetration in all the areas.

OPPORTUNITIES:

 Market growth in Spices segment.

 Rural areas & Overseas market.
 Exclusive stores.

THREATS:

 Cut throat competition with top players

 Inclination of people towards other brands.

Marketing Mix (4P Analysis):

Product:
They are providing broad range of products, which consists of different spices to different
food stuff. They are following mainly two strategies, for the market in which they are already
present they are focusing mainly market penetration. They try to increase their sale by dealing
with more numbers of wholesaler. So that they can reach to the customer through more retailers.
For the market in which they are not present, they are focusing for market development. After
reaching to the customer, they are trying to retain the quality parameter in the customer’s mind.
They are also using high quality material for packaging which also helpful for attracting the
customer. Behind every product they mentioned the details of the product. Like manufacturing
date to expiry date and also all contents, which is helpful for the customer to read and understand
all these things. They are also offering their product in online. Customer preferred customized
package also available.

Price:
They are following integrated pricing strategy. For some product they are following cost-
based pricing and for some product they are using value-based pricing. These two strategies they

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are following when deciding the price of the products. For new product they are using market
penetration pricing in which they keep low price to penetrate into the market. By product bundle
they combine some product in their outlets. For some products they are using psychological
pricing.

Place:
They are practicing 3-tier marketing distribution strategy. Products is moving from
company to super stockiest then to wholesaler then to retailer. At the end user is customer. They
are mainly focusing on rural area. Because this is the vast area and untapped market. In different
shopping mall also, they occupy a wide area for their product. Apart from Odisha they are also
supplying their product to Bihar & Chhattisgarh.

Questionnaire Survey & Response Data:-

During the period of our Live project-1 we surveyed through various exclusive stores and
general stores covered by Homefills. For the survey process we prepared two different sets of
questionnaires for stockiest and customers. We asked then question regarding their preference on
quality, price, taste, product category, problems to be solved etc.

The below data shows their response

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 (Customer Questionnaire) (Distributor Questionnaire)

Customers Response Data: -

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 Customers preferred Customers preferred
product feature
whole spices
masala Quality
7% 11%
atta,sattu,besan Taste
29% Price
21% pulses
all of the above
33% 56%

43%

Customers problem to be solved

price
22%
Taste

78%

Stockiest Response Data: -

Most stocked Mostly asked product by

product customer
masala masala
whole spices whole spices
10%
15% atta,sattu pulses
10%
38% pulses atta,sattu
15%
50%
30%
31%

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 More profit margin rather than competitors

20%
yes
No

80%

SIDBI(Small Industries Development Bank of India)

SIDBI is mandated to serve as the principal financial institution for executing the triple agenda
of promotion, finance and development of MSME sector and coordination of the functions of the
various institutions engaged in similar activities. Homefills is the beneficiary of Credit Linked
Capital Subsidy Scheme(CLCSS).The scheme facilitate technology upgradation of MSME in the
specified products/sub-sectors by providing 15% capital subsidy for induction of well-
established and improved technologies.

(Stickering of SIDBI on machineries)

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Promotion:
For promotion they are mainly using social media. In Facebook & Instagram they are
using creative post. In different fair also they install their stall to aware people regarding their
brand products. In print media also they are giving some add for their products. They are also
arranging meeting with cooks, where they invite Babarji and feed them with their spices.

(Promotional posters)

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MARKET CHANNEL ANALYSIS
Basically, for this segment we visited to different wholesaler and their own outlets. We observed
5 things here: -

1. Customer Preference- Which category of products customer preferred the most. In our
survey we found that spices items are mainly preferred by the customers.
2. Return without buying- This is all about what products customer is asking but return
without buying. In our survey we did not find any such customers.
3. Any extra products looking for- Here we observed what extra products customer is
asking, which is not available in their product portfolio. We found some customers are
asking for sugar, oil.
4. Any dissatisfaction regarding any products- Here we observed some customers are not
satisfied with besan and Soji.
5. What comes first- Price or Quality- Many customers preferred quality but some customer
also wanted the combination of both.

We also discussed with wholesaler what are the problem they are facing. For last one and half
year there are facing stock related issues.

(Homefills outlet & Super stockiest)

Key Learning:

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From the experience from this live project Programme, we have gathered an overall knowledge about
how a processing is being operated and managed in various department. We have learned about p lanning
& Strategy involved in Agri procurement which is raw material for the industry, Operation and
management in processing of value addition for Agri commodities, also learned about Integrated
marketing plan which includes segmentation, targeting and positioning also a brief analysis on
marketing mix i.e Product, place, price, promotion of the company.

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