Industrial Visit Report_nikhil Gupta.docx

An Industrial Project Report on

ANMOL INDUSTRIES LTD. SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE DREGREE OF

MASTER OF BUSINESS ADMINISTRATION

Name- Nikhil Gupta Roll: PG/24/MBA-IVS, No. 097 Registration No. 00993 of 2017-2018

Major specialization: Marketing Name of Institute: EIILM, Kolkata

Industrial Visit to ANMOL Industries Ltd. Introduction of the industry: The company Anmol Industries Ltd. is basically comes under fast moving consumer goods industry sector. FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP). FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management. Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc. Some of the merits of FMCG industry, which made this industry as a potential one, are low operational cost, strong distribution networks, presence of renowned FMCG companies. Population growth is another factor which is responsible behind the success of this industry. Some of the well known FMCG companies are Sara Lee, Nestlé, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc. FMCG industry creates a wide range of job opportunities. This industry is a stable, diverse, challenging and high profile industry providing a wide range of job categories like sales, supply chain, finance, marketing, operations, purchasing, human resources, product development and general management.

Fast moving consumer goods (FMCG) are the 4th largest sector in the Indian economy. There are three main segments in the sector – food and beverages which accounts for 19 per cent of the sector, healthcare which accounts for 31 per cent and household and personal care which accounts for the remaining 50 per cent. The FMCG sector has grown from US$ 31.6 billion in 2011 to US$ 52.75 billion in 2017-18. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 27.86 per cent to reach US$ 103.7 billion by 2020. The sector witnessed growth of 16.5 per cent in value terms between June–September 2018; supported by moderate inflation, increase in private consumption and rural income. It is forecasted to grow at 12-13 per cent between September– December 2018.^ FMCG’s urban segment is expected to have a steady revenue growth at 8 per cent in FY19 and the rural segment is forecasted to contribute 15-16 per cent of total income in FY19.* Post GST and demonetisation, modern trade share grew to 10 per cent of the overall FMCG revenue, as of August 2018. Accounting for a revenue share of around 45 per cent, rural segment is a large contributor to the overall revenue generated by the FMCG sector in India. Demand for quality goods and services have been going up in rural areas of India, on the back of improved distribution channels of manufacturing and FMCG companies. Urban segment accounted for a revenue share of 55 per cent in the overall revenues recorded by FMCG sector in India. FMCG Companies are looking to invest in energy efficient plants to benefit the society and lower costs in the long term. “PATANJALI” will spend US$ 743.72 million in various food parks in Maharashtra, Madhya Pradesh, Assam, Andhra Pradesh and Uttar Pradesh. “DABUR” is planning to invest Rs 250-300 Cr. (US$ 38.79-46.55 million) in FY19 for capacity expansion and is also looking for acquisitions in the domestic market. Investment intentions, related to FMCG sector, arising from paper pulp, sugar, fermentation, food processing, vegetable oils and “VANASPATHI”, soaps, cosmetics and toiletries industries, worth Rs 165.52 billion (US$ 2.36 billion) were implemented between January–September 2018. Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market. The focus on agriculture, MSMEs, education, healthcare, infrastructure and employment under the Union Budget 2018-19 is expected to directly impact the FMCG sector. These initiatives are expected to increase the disposable income in the hands of the common people, especially in the rural area, which will be beneficial for the sector.

(**Note- according to CRISIL report, ^ - according to Nielsen India, GST: Goods and Services Tax)

Company Profile: The company Anmol Industries Ltd. is a baking industry; it produces packaged biscuits, cakes & cookies. It is a leading player in the Indian FMCG industry with an annual turnover in excess of Rs 1000 cr. We have a strong presence across the Northern and Eastern India, and are currently making progressive efforts to establish our footprints in the Southern and Western parts as well. Since 1994, they have successfully leveraged their established brand presence, strategic supply chain, diversified product portfolio and consequent value proposition for consumers to reach maximum households. Additionally, their strategically located manufacturing facilities, experienced promoters and senior management team have made relentless efforts to establish Anmol as an iconic brand across India. They are the fourth largest biscuit brand and the fifth largest cake brand in India in terms of revenue. In the Eastern parts of India, they rank third across the biscuits segment and 4th across the cakes segment in terms of revenue. (Source: FS Report) Anmol’s diversified product portfolio contains over 61 varieties of biscuits, 26 varieties of cakes and irresistible cookies for all their consumers to indulge in. The myriad variety of products enable us to cater to a wide range of taste preferences across several consumer segments, thereby making the products less susceptible to shifts in consumer preferences, market trends and risks of operating in a particular product category. Additionally, they also manufacture and export 21 varieties of biscuits. At Anmol, they take pride in having stayed true to their promise, “Yours tastefully”, as their sole purpose has always been to give consumers the gift of taste and quality. Catering to diverse taste buds, they offer a range that has an exhaustive basket of biscuits covering a variety of segments – sweet, cracker, health, and cream. As for the fine cakes – they are variety and quality rolled into one. All their delights are made keeping in mind the goal to reach every soul, regardless of their diversity.

Company’s distribution network: Company has established an extensive distribution network across 17 states in India comprising of three depots; more than 200 super stockists, who in turn sell their products to more than 2,500 local distributors. Anmol biscuits and cakes are being sold in approximately 1.8 million retail outlets in India. Company’s Manufacturing Facilities: Company has six manufacturing facilities which are located in West Bengal, Greater Noida and Ghaziabad in Uttar Pradesh, Hajipur in Bihar and Bhubaneswar in Odisha with an Actual Installed Capacity of 294,544 MTPA for biscuits and 8,148 MTPA for cakes and production of 144,430.50 MTPA for biscuits and 2,484.89 MTPA for cakes. The manufacturing facilities are strategically located, close to their key markets in northern and eastern India, which accounted for 93.90% of their sale of products. In order to maintain consistent quality and freshness of the products, 97.09 % of their products were manufactured in facilities owned by the Company and only 2.91 % of the products were manufactured by the third party contractor, namely Fortune, to whom they have outsourced the manufacturing. Company’s Outsource Manufacturing: Company also outsource manufacturing of biscuits to Fortune at its manufacturing facility at Sambalpur, Odisha. The Fortune facility has an aggregate installed capacity of 10,200 MTPA for biscuits and its production was 4,401.28 MTPA as at March 31, 2018. Company’s Exports: Currently they export their products to certain countries in Asia, Africa, Middle East, Europe and Caribbean Islands. Currently revenue from exports account is around 0.65 % of their total sale of products. Competitors for the Company: (Region wise) Regions North East West South

Companies Britannia, Parle, ITC, Surya & Patanjali. Britannia, Parle, ITC, Bisk farm & Sobisco. Britannia, Parle, ITC & Sarjena foods. Britannia, Parle, ITC, Dukes & Rose biscuits.

Location of the Factory: Maity Para, P.S.- Dankuni, Belanagar, Hooghly, West Bengal712311.

Rout Map: 6, Waterloo Street to Factory.

Objectives of the Visit: A) To have an in-depth knowledge about FMCG industry. B) To have an idea about a real production plant and it’s design. C) To know the food product production process. D) To learn about the safety measures while working in manufacturing section.

Products of Anmol Industries Ltd. Anmol industries mainly produce three types of food product and they are discussed below; BISCUITS: Health:

Sweet:

BISCUITS: Cream:

Crackers:

Cakes & Cookies:  Bar Cake.

 Tiffin Cake.

 Sandwich Cake.

 Jam-Filled Cake.

 Cookies.

The Manufacturing Process:

Mixing Machine

Doe Making

(Flour, Sugar & Syrup filled in the Mixing Machine)

(In this stage the doe is prepared applying required amount of water in the mixing machine)

Baking Machine

Cutting & Shaping Machine

(In this machine the properly shaped doe’s baked at a particular temperature)

(Once the doe is prepared that goes into this cutting & shaping machine so that the doe can be converted to proper shapes of required output)

Cooling Machine

Packaging

(After baking the material kept in cooling machine to get finished products)

(In this stage all the finished products packaged in respective packages)

Storing (Being packed all the products shifts to store until going to market)

The Hierarchy of the Organization:

CHAIRMAN (Mr. Biswanath Choudhary)

VICE-CHAIRMAN (Mr. Dilip Kr. Choudhary)

MANAGING DIRECTOR (Mr. Bimal Kr. Choudhary)

GENERAL MANAGER (Mr. Gobind Ram Choudhary)

Sales Department

Marketing Department

Human Resource

Purchase Department

Production Department

Finance Department

Key Learnings: A) The layout of the plant. B) All about the production department. C) All about the manufacturing process. D) About the various machineries used in production system. E) Systematic way of producing finished goods. F) About the safety measure. G) About the maintenance of plant. H) Manpower management. I) Proper utilisation of resources.

Observations: A) The safety measures are very efficient in the plant. B) Amount of wastage is very less in quantity. C) All the processes are very systematic. D) The use conveyor belt is so effective which saves a lot of time and manpower.

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