Heinz India

Heinz India Akanksha Kanojia 32219 Rolika Sharma 32243

Mission statement of the company

As the trusted leader in nutrition and wellness, Heinz - the original Pure Food Company - is dedicated to the sustainable health of the people, the planet and our Company

Values at Heinz • Passion

To be passionate about winning and about our brands, products and people, thereby delivering superior value to our shareholders

• Risk Tolerance To create a culture where entrepreneurship and prudent risk taking are encouraged and rewarded • Excellence we do

To be the best in quality and in everything

• Motivation rewarding teams

To celebrate success, recognizing and the achievements of individuals and

• Innovation

To innovate in everything, from products to processes

• Empowerment take the • Respect

To empower our talented people to initiative and to do what’s right To act with integrity and respect towards

About the company • Started in the year 1994 by taking over the Family Product Division of Glaxo. • Head office is at Mumbai. • Branches in Mumbai, Delhi, Chennai and Kolkata • Factories at Aligarh and Bangalore. • Six co-packers who pack /manufacture our products based on our recipe, under our Technical & Quality Assurance supervision. • A Dedicated work force of 860 direct employees ; about 390 Management staff and 470 NonManagement staff

About the company • It is one of the fastest growing FMCG • Product : – – – – – –

Heinz Tomato Ketchup Heinz Kitchen Klassics Glucon D Complan Nycil Sampriti

• Zero debt company • CEO of Heinz India is Mr.Thiruambalam • VP HR is Mr.Mohan • •

Platinum Jubilee 1933 – 2008

World-Wide offices • It has office in the following countries: – ASIA - People's Republic of China, India, Indonesia, Philippines, Hong Kong, Japan, South Korea, Thailand, Republic of Singapore – Europe - Ireland, Italy, Greece, The Netherlands, Belgium , Germany, France – South America – Venezuela, Costa Rica – Africa - Botswana, Zimbabwe, South Africa – Australia and New Zeeland – Canada

Areas of businessManufacturing MANUFACTURING - FASTER, BETTER, CHEAPER • Dr Pardeep K Batra, VP-Operations • Approx 50 years of ‘bonding’ with 80000 milk shed farmers •Quality Systems aligned to • H J Heinz quality policy • ISO 9001:2000 quality management system • Quality Risk Management Process (QRMP) •Compliance & Adherence Monitoring Tools • Periodic Internal audits • Periodic External Audits • Regulatory Inspections • Global Audits • System Compliance Audits •

• •

Manufacturing capacity

Purchases/Procurement •

94% of raw materials agri based; availability and price remain highly volatile due to – High dependence on under-developed agriculture (yields, practices, markets…) – Effects of changes in climate , cropping pattern (cash crops) – Government control (MSP, EXIM policy)

– •

Demand is outstripping Supply in a country as large as India with rising population and income levels.

•

•

All procurement is local except for some DMH, Tomato paste, HTK lug caps & Apocarotenal (Total value of imports is about Rs 200MM (US$ 5 MM)

•

•

Very high import tariffs (30% on agriitems, 20% on DMH clubbed with strong $ makes imports unviable.

•

•

Weak supplier base in many categories (glass: monopoly vendor, plastics – Reliance, Printing, DMH, ……)

R&D • Complete Technical Infrastructure – Specialist/experts in categories – Facilities in house supplemented by best externally – Network- Leading Scientists, Authorities and Institution – Linked to Global Innovation • Strong track record – Products – Ideas – Business support – Marketing, Legal • And Integration with Sales team –

Finance – Area of business Controlling and reporting • Monthly reporting of actual financials to WHQ • Compilation of Indian financials and liaison with the statutory auditors for audit • Interface with Heinz Italia/Europe for all reporting requirements as their subsidiary • Custodian of company fixed assets • Compliance to Heinz Financial policy and other accounting pronouncements •Planning and reporting • Compilation of monthly forecasts based on inputs received from Sales, Marketing & Supply Chain – upload of reports to WHQ • Analysis of actual spends – comparison of variances – identifying gaps and following up on corrective actions taken • Preparation of Annual budget – setting of standards for the year – inputs from R & D on new products • SKU control including gross margins for new products/line extensions •

•

HR – Area of business Guiding principles

•

•

People are our greatest asset- both tangible and intangible

•

Leverage the Talent Advantage

•

Transformative growth requires transformative mindset

•

An open, empowered mind delivers outstanding results

•

Listen to People and they will listen to you

•

Age Group : 62% of Employees are between 20 to 35 yrs age group.

•

Average Age : 34 Years

•

Feb 2009 head count is 416 Management staff against 372 in Jan.2008

Innovate to attract and retain talent (Target 96% occupancy)

•

•

• • • • •

Unique Talent Management Processes involving ‘larger leadership’ with added focus for development & growth interventions for Probable High Potentials and Vital Contributors Leverage ‘most localized global company’ & “ Leadership from within” stature. Innovative and differentiated C&B (local RSI) and People Policies Fun at work – a “serious agenda” Develop Line Managers as People Managers to take ownership of his/her people’s interest Focus on building a robust two way PMD

Market Analysis § Complan fastest growing brand in milk food energy category, even with 45% price premium § Glucon-d user base of 40 million users in India § Nycil, pan India consumer franchise of 16 million users § Glucon-d market share 70% in India § Nycil share of 40% in the prickly heat powder segment § Complan market share of 14% in India § Growth of 40% in last quarter § Target to become a 1000 crore company by 2011 and 2500 crore by 2013 being an 800 crore brand currently

Press releases / News results • 1st September 2009 - Heinz India forayed in the ready-toeat (RTE) Indian maincourse food category with the launch of a new range of four Ready To Eat Meals. The range includes Amritsari chole, Awadhi dal fry etc. under the brand name, Heinz Kitchen Klassics • It wants its prickly heat powder to be taxed at 8 per cent, as supplies to drugs and medicines, rather than 20 per cent, as demanded by the state government under the Kerala General Sales Tax Act, 1963 • Glucon-d has been voted the most trusted cold beverage in India • 2nd most trusted beverage brand • New product - breakfast cereals under the brand Complan

CSR

CSR • HNFI - Heinz Nutrition foundation India was founded in 1997 as a non profit trust to advance the knowledge and practice of nutrition • Based on such a mission ‘The Foundation’ functions as follows: a) Spreading latest information by way of a Newsletter b) Undertaking the funding of small but seminal research projects c) Facilitating and promoting nutrition education and awareness by taking part in and or conducting nutrition conferences

Culture / HR policies • People development interventions: Cover 75% of Management staff with atleast10% getting ‘international exposure • Innovative and differentiated C&B (local RSI) and People Policies • Engagement survey- Ranked No. 2 as most admired Food & Beverages company; strong leadership and high people focus • Age Group : 62% of our Employees are between 20 to 35 yrs age group • One Team One Dream campaign

HR – People practices • Strong Performance Management Process • Cross Functional Exposure • Early Responsibility • Global Interface (frequent interaction with global teams) • Rewards and Recognition • Work life balance • Fun at Work activities • Flat organization • Focus on employee development

Talent banding Ø Objective : • To identify our talent profile and lay down appropriate development, retention and recognition interventions for specific individuals •

Ø Methodology : • Feedback from Functional Heads on the basis of the ‘Performance – Potential Matrix’ •

Ø Scope : • All Executive and Managerial associates • Top 5% of Distributor/Outsourced Sales personnel and Workmen • Ø Deliverables : • Growth plans for High Performers & Vital Contributors (select) • Opportunities to expand roles and take up challenging projects • Structured learning through in-Company projects/assignments • Nomination to high-value Training Programmes conducted

Summer internship • Selection : Interviews for campus recruitment • Functions: Sales & Marketing, HR, Finance, Supply Chain and Operations Management • • Projects in Mumbai HO / Branch Offices / Non-metro towns / Factory in Aligarh, UP • • Real time projects guided by Mentors from respective functions • Project presentations to functional heads •

Challenges • Today's business environment is particularly challenging and the endeavor of Heinz is to become an even sharper, quicker, and more nimble global food company. Their opportunities and challenges include – A requirement to develop more innovative products to satisfy changing eating trends; – Utilizing their global reach to serve and satisfy global consumers and customers; – The need to satisfy consumers desires for highquality, great tasting, nutritious foods that are quicker and easier to prepare – To make people their most productive and valuable asset – To identify and enter new markets •

THANK YOU