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CHAPTER 1 INTRODUCTION 1.

1 INTRODUCTION ABOUT THE STUDY:


The internship training period of 45 days is great opportunity to me gather practical knowledge about the functions of the organization. Though we have theoretical knowledge about the functions of an organization, it is very difficult practice. So I happen to know the practical things applied in the organization through this training and also it provided me with a experience that could help me to survive in an organization in future. The internship training I underwent to VELL BISCUITS PRIVATE LIMITED (A CONTRACT MANUFACTURING UNIT OF ITC) enriched my knowledge in a practical manner. In this practical training, I happen to observe that the company is taking more care about welfare and safety facilities to employees communication and hospitality. It helped to know the performance of the organization and how it goes on increasing. And also it may help to know that how to manage the organization effectively and how to take decision in the organization.

1.2 PROFILE OF INDIAN BISCUIT INDUSTRY:


Indian Biscuits Industry is the largest among all the food industries and has a turnover of around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 % of the total bakery products in India. Biscuits stand at a higher value and production level than bread. This belongs to the unorganized sector of the Industry and covers over 70% of the total production. Indian Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for readymade food products at a tenable cost. Now, it has become one of the most loved fast food products for every age group. The rural sector consumes around 55% of the biscuits in the bakery products. The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990. Biscuits contribute to over 33% of the total production of bakery and above 79% of the biscuits are manufactured by the bakery industry comprising both Factory.and.non-factory.units. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers like Cadbury nestle, and Brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies.that.produced.only.biscuits. The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully.

1.3 PROFILE OF ITC A Conglomerate:


ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. The Companys beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House'. The first six decades of the Company's existence were devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division.

In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited. In 1990, ITC acquired Tribeni Tissues Limited and named as the Tribeni Tissues Division (TTD).TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in Nov 2002. In 1990, ITC set up the Agri Business Division for export of agricommodities. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraft was launched in 2002. The popular range of notebooks was launched under brand Classmate in 2003. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the Paperkraft Brand. Paperkraft entered new categories in the office consumable segment with the launch of Text liners, Permanent Ink Markers and White Board Markers in 2009.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002 In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging opportunities in this area. ITC's foray into the Foods business August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad Atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. The Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

1.4 PROFILE OF VELL BISCUITS- A CMU OF ITC:


New India Palmar foods founded in the year 1995-96 casually by some eleven friends to manufacture biscuits with Brand name of palmar Biscuits. Rated capacity was aimed at 45 MT/month. After some days; the plant became a conversion plant for Kwality Biscuits, Bangalore and the capacity utilization was @ 250 to 300 Mt per month. After Kwality Biscuits, NIPF made biscuits for Saralee Bakery India, an MNC of USA between 2000 & 2001. Saralee Bakerys entire salted crache was supplied from NIPF. After Saralee, Aurofoods TRUE-MARIE and TRUE NICE were being made at NIPF. NIPF has a turning point at February 2004 with ITC coming into Biscuit Market as well into NIPF. We at NIPF started utilizing the entire capacity of 450 MT/month after ITC entered. 450 MT was too less quantity for a huge marketer like ITC. It was decided to expand the capacity. Project was finalized at April 2004, product rolled out first at May 2005 from the first phase of expansion and at august 2005 from the second phase of project. Now we are aimed at a capacity of 120MT/Day. Marching towards the

goal; Day by day in every way we are reaching better and better. Company name changed as VELL BISCUITS PVT LTD from 10 t h Feb09 onwards.

1.5 VISION:
To sustain our position as one of India's most valuable corporations through world class performance.

To live by the strong Values of Trusteeship and to nourish internal Vitality.

To create a growing value for the Indian economy and the Companys stakeholders.

1.6 MISSION:
To enhance the wealth generating capability of the enterprise in a globalising environment. To deliver superior and sustainable stakeholder value.

1.7 CORPORATE STRATEGIES:


Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in our businesses. Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses .

Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of management.

CHAPTER 2 PRODUCTION DEPARTMENT

2.1 CONCEPT OF PRODUCTION:


CONTINUOUS PRODUCTION SYSTEM:

Standardization is the fundamental characteristic of this system. Here items are produced in large quantities and much emphasis is not given to consumers orders. In fact the production is to stock and not to order. Standardization is there with respect to materials and machines. Uniform and uninterrupted flow of material is maintained through pre determined sequence of operations required to produce the product. The system can produce only one type of product at one time. These days, mass production system is generally used to manufacture subassemblies or particular parts/components of an item. These parts are assembled together by the enterprise to get the final product. One distinct advantage of this approach is that different combinations of sub-assemblies or parts can be used to manufacture different kinds of products. Specialization and standardization in manufacturing single component also leads to economies in production and product diversification to meet specific demands of consumers. After setting of master production schedule, a detailed planning is carried on. Basic manufacturing information and bills of material are recorded. Information for machine load charts, equipment, personnel and material needs is tabulated.

In continuous manufacturing systems, each production run manufactures in large lot sizes and the production process is carried on in a definite sequence of operations in a pre-determined order. In this process, storage is not necessary which in turn reduces material handling and transportation facilities. First in first out priority rules are followed in the system. In short, here the input-output characteristics are standardized allowing for standardization of operations and their sequence.

2.2 BISCUIT MAKING:

Types of biscuit:
Plain glucose , Cracker , Digestive , Cream Sanwich , Wafer , Enrobed and Biscuits with Filling.

Basic ingredients for biscuit manufacturing are, Flour , Fat and sugar Flavours , Salts , Ammonium and sodium bicarbonte.

Bakery equipments required for biscuit manufacturing


Mixers Laminator

Dough Distributors Gauge rolls Moulder or Cutter Oven Packing machine Sugar, Biscuit Grinders.

Automated Biscuit manufacturing process consists of five steps. They are,


Mixing, Moulding, Baking, Cooling, Packing.

2.3 PROCESS:
MIXING: Here, all ingredients are put together in right proportion for dough formation.These ingredient are then fed into Mixers where mixing is done and dough is prepared for molding .Major ingredients are flour , fat ,sugar and others as per the product.Dough temperatures is important in biscuit manufacturing.Normally mixing time is between 10- 15 min and is performed in two or three stages with different mixing speed .

MOULDING: Here we laminate the dough into sheet which then passes down to gauge rollers and sheet thickness is achieved for cutting . Here we have a cutter or a moulder as per the variety where one gets the shape and sizes

of biscuits. short dough type of biscuit and cutters for sheet variety or hard dough ,where their speed depends on different variety of biscuit.

BAKING: Here we pass the moulded wet biscuit into baking oven.The biscuits are baked on desired temperature .Various type of heating are available as per the convenience and cost. Heating of biscuit is done by conduction , convection and radiation inside the oven. Dampers are provided to control moisture inside the oven ssection. Normally ovens are classified as 4 zone, 5 zone or 6zone ovens where length varies from 40 mtr to 80 mtrs . Biscuits are carried on wire mesh band in oven .

COOLING: These baked biscuits are then passed on to cooling conveyors for natural cooling prior to packing .The temperatures are brought down to room temperatures .The length of conveyor is sometimes 300 - 400 ft . Cooling conveors can be of two deck or 3 deck type as per space availability . Natural cooling is prefered over forced cooling as it maintains the texture quality of biscuit .

PACKING: These biscuit are then stacked and fed into packing machine for packing. Different packing material are available for packing of these biscuit in different packs .slug packs , pouch pack or family packs etc. These packs are then put into secondary packaging like cartons to be transported to retailers.Packing material used for biscuit packaging are BOPP ,Laminates ( pearlised or metallised ) ,Pouches .

2.4 FUNCTIONAL LAYOUT:


Plain biscuit process layout:

Wafer biscuit process layout:

CHAPTER 3 FINANCE DEPARTMENT

3.1 CONCEPT OF FINANCE


Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.

3.2 ELEMENTS OF FINANCE

1. Investment decisions includes investment in fixed assets (called as

capital budgeting).Investment in current assets are also a part of investment decisions called as working capital decisions.
2. Financial decisions - They relate to the raising of finance from various

resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby.
3. Dividend decision - The finance manager has to take decision with

regards to the net profit distribution.

3.3 OBJECTIVES:
1. To ensure regular and adequate supply of funds to the concern.
2. To ensure adequate returns to the shareholders .This depends upon the

earning capacity, market price of the share, expectations of them. 3. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost. 4. To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved. 5. To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.

3.4 FUNCTIONS:

1. Estimation of capital requirements: A finance manager has to make

estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future policies of a concern. Estimations should increase earning capacity of enterprise.

2. Determination of capital composition: Once the estimation has been

made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties.
3. Choice of sources of funds: For additional funds to be procured, a

company has many choices likea. Issue of shares and debentures b. Loans to be taken from banks and financial institutions c. Public deposits to be drawn like in form of bonds.
4. Investment of funds: The finance manager has to decide to allocate funds

into profitable ventures so that there is safety on investment and regular returns is possible.
5. Disposal of surplus: The net profits decision has to be made by the

finance manager. This can be done in two ways: a. Dividend declaration - It includes identifying the rate of dividends and other benefits like bonus. b. Retained profits - The volume has to be decided which will depend upon expansion, innovation, diversification plans of the company.
6. Management of cash: Finance manager has to make decisions with

regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintenance of enough stock, purchase of raw materials, etc.

CHAPTER 4 MARKETING DEPARTMENT 4.1 CONCEPT OF MARKETING:

Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business

communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves. Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

4.2 PRODUCT LINE: Fast Moving Consumer Goods:

Cigarettes W. D. & H. O. Wills, Gold Flake Kings , Gold Flake Premium, Navy Cut, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Mild & Ultra Mild), 555, Benson & Hedges, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players and Flake.

Foods: (Kitchens of India ; Ashirvaad ; Minto ; Sunfeast ; Candyman ; Bingo ; Yippee, Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits, Confectionery, Noodles and Snack Foods);

Apparel: (Wills Lifestyle and John Players brands); Personal care: (Fiama di Wills ; Vivel ; Essenza di Wills ; Superia ; Vivel di Wills brands of products in perfumes, haircare and skincare) [ 2 ] Stationery: (Classmate and Paperkraft brands) Safety Matches and Agarbattis: [Ship (through ownership of WIMCO ); iKno; Mangaldeep; Aim brands]

Other businesses include:

Hotels : ITC's hotels (under brands including ITC Hotel /Welcomhotel) have evolved into being India's second largest hotel chain with over 80 hotels throughout the country. ITC is also the exclusive franchisee in India of two brands owned by Sheraton International Inc.- The Luxury Collection and Sheraton which ITC uses in association with its own brands in the luxury 5 star segment. Brands in the hospitality sector owned and operated by its subsidiaries include Fortune and Welcomheritage brands.

Paperboard, Specialty Paper, Graphic and other Paper; Packaging and Printing for diverse international and Indian clientele. Infotech (through its fully owned subsidiary ITC Infotech India Limited which is a SEI CMM Level 5 company)

FIGURE 4.1

ITC PRODUCT LINE

FIGURE 4.2

ITC BRANDS IN FOOD DIVISION

4.3

PRODUCT MIX:
TABLE 4.1 MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

Product variety & Quality Design & Features Brand name & Packaging Sizes & Services Warranties & Returns

Last Price Discounts Allowances Payment period Credit terms

Sales Promotion Advertising Sales Force Public relation Direct Marketing

Channels Coverage Assortments Locations& Inventory Transport

The product of the firm varies in coincidence with the Product line. As far as ITC is Concerned, products are served as Goods and Services. The Price of each Product is Determined by our Pricing policy and they may vary according to the fiscal policy of the Government. The Manufacturing process takes place in our own factories and many Contract Manufacturing Units. There are also factory outlets and retails outlets are available throughout the nation. They are supplied with our products through our Marketing channels. Promotional Activities are done through our Sales force. This Contributes to the Sales Promotion and other promotional activities include Advertising, Awareness programmes,etc.

4.4 MARKETING STRATEGIES:

SEGMENTATION: Creating brands from scratch with no history and lineage,ITC used clear segmentation across its five product lines and the target audience,each brand was meant for. GROUP SYNERGY: Once the five products were created and communication strategies set, ITC leveraged its properties like hotels, foods and apparel store network to retail these brands. COMMUNICATION STARATEGY: Like HUL, these brands sport Western names, and different communication.Essenza & Fiama, meant for the elite, have English communication, while Vivel &Superia use Hindi. BRAND EXTENSIONS: Selective extensions as it does not want to confuse consumers with too many irrelevant brand extension & sub-brands. The Essenza range is the only exception. BRAND AMBASSADORS: ITC uses brand ambassadors strategically.While for the Fiama and Vivel ranges it has roped in brand ambassadors, for the Superia & Essenza ranges the key TG is the real king. PACKAGING: Since packaging plays a key role in product differentiation,ITC uses it to the hit. It has taken foreign experts help to make its products stand out from competition.

CHAPTER 5

HUMAN RESOURCE DEPARTMENT

5.1 CONCEPT OF HRM:


Human resource management is the management of an organization's employees. This includes employment and arbitration in accord with the law, and with a company's directives. Human Resource Management techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations.

5.2 HR OBJECTIVES:

The primary objective is to nurture a culture of meritocracy amongst a committed and enthusiastic workforce from diverse backgrounds. In the pursuit of this objective, the following goals have been set for the consecutive five years:

All ITC's Units, which are already 'beyond compliance' in all areas related to labour practices, will continue to be so. Ensure that the Company's record of attraction and retention of talent is superior to other companies in the comparative sample.

Enable employees to perform to their fullest potential to add value to the enterprise, nation and themselves. Enhance the Company's employee value proposition so that ITC retains its position as an employer of choice. Endeavour to eliminate accidents and injuries both onsite and offsite.

5.3 HR POLICY:
ITC is committed to employee engagement that upholds individual dignity and respects human rights. ITC's employment practices are premised on attracting and retaining talent based only on merit. Its capability development agenda ensures the deepening and enhancement of skills of all its employees through customized training and development inputs. All ITC employees operate in a work environment that is benchmarked internationally for the quality of its safety and health standards.

5.4 RESPONSIBILITY:
It is the overall responsibility of the Divisional Chief Executives, through the members of their Divisional Management Committees, Human Resources and EHS Functions, to ensure that employment and EHS practices in all Units are in accordance with the policy outlined above and to ensure total compliance with all statutory provisions governing labour practices and decent work. Specific responsibilities are assigned to different individuals based on the roles being performed by them. The Corporate Human Resources and EHS functions are responsible for reviewing and updating standards and guidelines on labour and EHS policies, employment practices, and for providing guidance and support to all concerned.

The Company leadership 'walking the talk' and a relentless focus on implementing the policy underlines the Company's approach to employment practices and creating a decent work environment. The Human Resources and EHS functions of each business are the primary custodians of ITC's labour and EHS policies and employment practices, the implementation of which is reviewed periodically at the Unit and the Divisional levels. The Corporate Human Resources and EHS functions provide specialist services to assist in the implementation and monitoring of the same. The multilayered and multi-dimensional audit framework of the Company also helps in monitoring compliance with laid down policies and statutory regulations.

5.5 TRAINING & AWARDS:


The policy is shared with employees and potential employees through training programmes, communication sessions, the Company portal, intranet sites and pre-placement presentations. Managers from HR, EHS and Engineering departments are provided regular training for effective implementation of these policies. Monitoring & Follow-up: The Human Resources and EHS staff members of the Divisions regularly monitor progress to ensure proper implementation of these policies, while the Unit Heads and the Divisional Management Committees follow-up periodically to ensure full compliance. The Corporate EHS Department undertakes regular audits of the Units. Awards:

A number of awards for excellence in Human Resources and EHS management and practices bear testimony to ITC's commitment to Human Resource Development and EHS and to best-in-class employment practices. Context: High standards of employment and EHS practices enhance the Company's performance, help in the attraction and retention of quality talent, and enhance the equity of the Company as a responsible employer.

5.6 KEY PEOPLE:


NAME Y.C.DEVESHWAR KURUSH GRANT P. DHOBALE NAKUL ANAND RAJIV TANDON DESIGNATION Chairman Executive Director Executive Director Executive Director Chief Financial Officer

FIGURE 5.2 EMPLOYEE STRENGTH AT PUDUCHERRY PLANT OF ITC

DESIGNATION
ADMINISTRATION FINANCE HRD PRODUCTION: Packing machine supervisors Packing machine operators Packing machine mechanics Mixing Oven

NUMBER OF EMPLOYEES
26 19 12

18 58 40 27 12

Line cutters Lab workers BSR MAINTENANCE: Stores Commercial General molding Contract labours TOTAL

22 66 10

22 30 21 34 76 493

CHAPTER 6 MAINTENANCE DEPARTMENT

6.1 CONCEPT OF MAINTENANCE:


Our Company is committed to delivering world-class products and services. This requires a clear focus on continuously striving to create a higher value to customers by achieving excellence in all Company's operations. Business excellence calls for a passionate focus on technology, products, services, processes and an operating environment firmly anchored to an impregnable foundation of Quality. We firmly believe that quality is not a specifically assignable task. It needs to be firmly rooted and institutionalized in the culture and value system of the Company. We nurture a culture of striving for continuous improvement in

quality, be it in products, services, systems or performance. The Company is committed to the establishment of systems and processes to promote organisational creativity and innovation. Our development of Integrated Quality Management System (IQMS) is based on its strong foundation of participative management concepts like QC (Quality Control), TQM (Total Quality Management), KSS (Kaizen Suggestion Scheme), 5S, Six Sigma. All ITC manufacturing units have ISO quality certification. Almost all contract manufacturing units in the Foods Business and all large hotels have food safety and quality systems certified by accredited 'third party' in accordance with 'Hazard Analysis Critical Control Points' (HACCP) standards. Additionally, the quality of all FMCG products of the Company is regularly monitored through 'Product Quality Rating System' (PQRS).

6.2 INTEGRATED QUALITY MANAGEMENT: ISO 9001:2000


ISO 9001 is the internationally recognised standard for the quality management of businesses. It applies to the processes that create and control the products and services an organisation supplies, prescribes systematic control of activities to ensure that the needs and expectations of customers are met . It is designed and intended to apply to virtually any product or service, made by any process anywhere in the world

ISO 14001
ISO 14001 is the internationally recognised standard for the

environmental management of businesses. It prescribes controls for those

activities that have an effect on the environment. These include the use of natural resources, handling and treatment of waste and energy consumption.

OHSAS 18001
OHSAS 18001 is the latest certification specification for Occupational Health and Safety Management Systems. It is based on already published criteria such as BS 8800 and the Management Regulations 1992. OHSAS 18001 is an audit/certification specification, not a legislative requirement or a guide to implementation.

SA 8000
SA8000 is a global social accountability standard for decent working conditions, developed and overseen by Social Accountability International (SAI).SAI offers training in SA8000 and other workplace standards to managers, workers and auditors. It contracts with a global accreditation agency, Social Accountability Accreditation Services (SAAS) that licences and oversees auditing organisations to award certification to employers that comply with SA8000.

HACCP
HACCP is a systematic preventive approach to food safety and

pharmaceutical safety that addresses physical, chemical, and biological hazards as a means of prevention rather than finished product inspection. HACCP is used in the food industry to identify potential food safety hazards, so that key actions, known as Critical Control Points (CCPs) can be taken to reduce or eliminate the risk of the hazards being realized. The system is used at all stages of food production and preparation processes including packaging, distribution, etc.

IQRS:
IQRS is a Quality Auditing System. The Leaf Tobacco and Printing & Packaging businesses have achieved world-class ratings in the 'International

Quality Rating System' (IQRS) for business excellence in which key processes are rated against international benchmarks and certified by accredited 'third party' independent assurance providers.

6.3 INVENTORY MANMAGEMENT:


For inventory management in Puducherry plant of ITC, certain things are considered which are completely practical As market generally fluctuates so if there is any perception of the increment in the price level of any commodity in future then that particular commodity is stored. All the materials of the mixture, which is used in making biscuits, can be stored maximum only for 3 days. Because store of plant is designed like this that more than 3 days storage cant be maintained in it. Minimum levels of inventories are maintained in plant in wake of lead-time, govt. policies, and one-day safety stock for transportation problem. Re-order levels of inventories are maintained in the plant in wake of per day consumption level of inventories and lead-time in days.

6.4 WASTE MANAGEMENT:


This is a newer approach to cost-effective food-processing waste disposal. Through waste management, modifications are applied to biscuit plant operation and manufacturing processes. These modifications reduce the amount of solid and liquid wastes, recover more product and by-product, often reduce energy consumption and ezhibit other benefits. In general, the principle is to convert waste liabilities into profitable assets. One major objective of waste management is to eliminate or at least lessen the dependence upon end-of-the-pipe sanitary engineering methods. This is achieved by reducing both the amount of waste solids generated and the volume of the waste water discharged

The following are the modifications, which are made in our biscuit plant: 1) 2) Incorporating good manufacturing practices Collecting culls and other solid wastes into containers rather than discharging to the floor drain.
3)

Recycling water, reusing spent process water in another plant operation. Using less or no water in plant operations that formerly used a fair to a large amount of water. Good manufacturing practices that reduce water usage and waste require good

4)

personnel management and employee awarneness of conservation practices. Such practices as needless use of water or overloading of containers, thereby causing spillage,should be discouraged. Recycling of water in the same plant operation can be achieved by treating spent process water with activated charcoal or sand filter of by ionexchange columns, chemical treatment, pH adjustment,temperature adjustment, pasteurisation, or a combination of these and other methods. Counter currents water reuse systems can be established in many plant operations.

CHAPTER 7 SWOT ANALYSIS 7.1 CONCEPT OF SWOT ANALYSIS:


SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert

Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. ITC Ltd., is one of the Indias largest multinational corporate enterprises. It was registered in Calcutta with a small office in Radhabazar Lane, with one expatriate manager and one acquired cigarette manufacturing facility in Munger, in 1910. Now, ITC is one of India's biggest and best-known private sector companies. In fact it is one of the World's most high profile consumer operations organisations.

7.1 STRENGTHS:
The organisation has some major strengths that give it a competitive advantage over its rivals. 1. Strong Financial Performance: On 31st march, 2010, ITCs market cap was Rs. 114000 crores with a Gross income of Rs. 26,863 crores and Profit after tax of Rs. 4061 crores. The company continues its impressive record of financial performance. 2. Products Portfolio: ITCs portfolio of products and services is represented by over 50 energetic Brands in a range of more than 650 stock keeping units (SKUs). 3. Distribution Network: ITCS products are available in over 6 million retail outlets in the country. Its formidable Distribution organisation directly services more than 2 million of these retail outlets. It used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. 4. Environmental Friendly: ITC has a status of being Water Positive for the 8th consecutive year,

Carbon Positive for the 5th year in succession and solid waste recycling positive for 3 years in a row. ITC is the only enterprise in the world of its size to have achieved and sustained these three global environmental distinctions. As consumers and investors become more environment friendly, these considerations will provide the organisation an opportunity to create USPs and stronger brand loyalty and brand equity. 5. Research & Development: ITC recognises that cutting edge R&D can foster breakthrough innovation and create powerful sources of sustainable competitive advantage. This vision has led to the establishment of a state of the art R&D centre at Bengaluru with over 50 world- class scientists. Its R&D program will create new game changing business opportunities. 6. Socially Responsibility: ITCs initiatives to build social capital through extensive community engagement have led to the creation of sustainable livelihood opportunities for over 5 million people. ITC has helped create more than 20,000 rural women entrepreneurs. ITCs supplementary education initiative has reached out to over 200000 school children in rural areas. ITCs value chain supports over 5 million livelihoods. 7. Brand Equity: ITC is one of the best known brands in India and it dominates the market with a huge interest towards and from the Public. 8.New Product Development: ITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products.

The above factors express the positive points about the company and it would definitely make the company a strong corporate organisation.

7.2 WEAKNESSES:
In spite of several strengths, there remain some areas of weakness and concern for the organisation. 1. Dependency on the tobacco business: To fund its cash guzzling FMCG start-up, the company is still dependent upon its tobacco revenue. Cigarettes account for 47% of the companys turnover and for 80% of its profits. So there is an argument that ITCs move into FMCG is being subsidised by its tobacco operations. 2. Not present in many important sectors: Although ITC is a diversified company trading in a number of business sectors such as cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care and other FMCG products, greeting cards, Information Technology, safety matches, incense sticks and stationery etc. Yet, it does not have presence in many important sectors such as insurance, infrastructure, banking and financial services, BPO, telecom, automotive etc. and thus becomes comparatively weak when compared with other conglomerates like the Bharti group, the Tata group and the Ambani groups. 3. Local Company: ITC is a local company. It does not have a large portfolio of exports in either products or services. This makes the company comparatively weak in

terms of being able to leverage global opportunities, talent & financing. The above represent some of the major weaknesses the company has at present and it is clearly understood that these wealnesses are temporary and they can be rectified very soon.

7.3 OPPORTUNITIES
1. Leveraging its brand equity ITCs products & services are of high quality. If ITC enter into any business or launch any product, consumer know its ITCs product, consumers shall trust these to be of good quality. ITCs brand equity would make ITC successful in most sectors. 2. Right size at the right time:

A corporate must have the right organisational and investment capability and this must coincide with a growth stage in the economy in which it operates. This seems to be a perfect setting for ITC. 3. Penetrating into new Sectors:

ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. 4. e-Choupal: e-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages.

5. Per capita consumption: Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

7.4 THREATS:

1.Raising Competition: The obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. 2.Nature of Business: ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future. 3.Risk Involved : ITC was incorporated on August 24, 1910 .Its beginnings were humble. But, today, the raising expenses and the invesments has high risks, obviously.