INDUSTRY PROFILE

Products which have a quick turnover, and relatively low cost are known as

Fast Moving Consumer Goods (FMCG). FMCG products are those that get

replaced within a year. Examples of FMCG generally include a wide range of

frequently purchased consumer products such as toiletries, soap, cosmetics,

tooth cleaning products, shaving products and detergents, as well as other non-

durables such as glassware, bulbs, batteries, paper products, and plastic goods.

FMCG may also include pharmaceuticals, consumer electronics, packaged food

products, soft drinks, tissue paper, and chocolate bars.

Indiaʹs FMCG sector is the fourth largest sector in the economy and creates

employment for more than three million people in downstream activities. Its

principal constituents are Household Care, Personal Care and Food &

Beverages. The total FMCG market is in excess of Rs. 85,000 Crores. It is

currently growing at double digit growth rate and is expected to maintain a high

growth rate. FMCG Industry is characterized by a well established distribution

network, low penetration levels, low operating cost, lower per capita

consumption and intense competition between the organized and unorganized

segments.

The Rs 85,000-crore Indian FMCG industry is expected to register a healthy

growth in the third quarter of 2009-10 despite the economic downturn. The

industry is expected to register a 15% growth in Q3 2009-10 as compared to the

corresponding period last year. Unlike other sectors, the FMCG industry did not

slow down since Q2 2008-09 the industry is doing pretty well, bucking the

trend. As it is meeting the every-day demands of consumers, it will continue to

grow. In the last two months, input costs have come down and this was

reflected in Q3 and Q4 results.

Market share movements indicate that companies such as Marico Ltd and

Nestle India Ltd, with domination in their key categories, have improved their

market shares and outperformed peers in the FMCG sector. This has been also

aided by the lack of competition in the respective categories. Single product

leaders such as Colgate Palmolive India Ltd and Britannia Industries Ltd have

also witnessed strength in their respective categories, aided by innovations and

strong distribution. Strong players in the economy segment like Godrej

Consumer Products Ltd in soaps and Dabur in toothpastes have also posted

market share improvement, with revived growth in semi-urban and rural

markets.

Swot Analysis

Strengths:

• Low operational costs

• Presence of established distribution networks in both urban and rural areas

• Presence of well-known brands in FMCG sector

Weaknesses:

• Lower scope of investing in technology and achieving economies of scale,

especially in small sectors

• Low exports levels

Opportunities:

• Untapped rural market

• Rising income levels, i.e. increase in purchasing power of consumers

• Large domestic market- a population of over one billion.

• Export potential

• High consumer goods spending

Threats:

• Removal of import restrictions resulting in replacing of domestic brands

• Slowdown in rural demand

• Tax and regulatory structure

Industry Category and Products

Household Care

Personal Wash:-

The market size of personal wash is estimated to be around Rs. 8,300 Cr. The

personal wash can be segregated into three segments: Premium, Economy and

Popular. The penetration level of soaps is ~92 per cent. It is available in 5

million retail stores, out of which, 75 per cent are in the rural areas. HUL is the

leader with market share of ~53 per cent; Godrej occupies second position with

market share of ~10 per cent. With increase in disposable incomes, growth in

rural demand is expected to increase because consumers are moving up towards

premium products. However, in the recent past there has not been much change

in the volume of premium soaps in proportion to economy soaps, because

increase in prices has led some consumers to look for cheaper substitutes.

Detergents:-

The size of the detergent market is estimated to be Rs. 12,000 Cr. Household

care segment is characterized by high degree of competition and high level of

penetration. With rapid urbanization, emergence of small pack size and sachets,

the demand for the household care products is flourishing. The demand for

detergents has been growing but the regional and small unorganized players

account for a major share of the total volume of the detergent market. In

washing powder HUL is the leader with ~38 per cent of mar-ket share. Other

major players are Nirma, Henkel and Proctor & Gamble.

Personal Care

Skin Care:-

The total skin care market is estimated to be around Rs. 3,400 Cr. The skin care

market is at a primary stage in India. The penetration level of this segment in

India is around 20 per cent. With changing life styles, increase in disposable

incomes, greater product choice and availability, people are becoming aware

about personal grooming. The major players in this segment are Hindustan

Unilever with a market share of ~54 per cent, fol-lowed by CavinKare with a

market share of ~12 per cent and Godrej with a market share of ~3 per cent.

Hair Care:-

The hair care market in India is estimated at around Rs. 3,800 Cr. The hair care

market can be segmented into hair oils, shampoos, hair colorants &

conditioners, and hair gels. Marico is the leader in Hair Oil segment with

market share of ~ 33 per cent; Dabur occu-pies second position at ~17 per cent.

Shampoos:-

The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the

penetration level of only 13 per cent in India. Sachet makes up to 40 per cent of

the total shampoo sale. It has low penetration level even in metros. Again the

market is dominated by HUL with around ~47 per cent market share; P&G

occupies second position with market share of around ~23 per cent.

Antidandruff segment constitutes around 15 per cent of the total shampoo

market. The market is further expected to increase due to increased marketing

by players and availability of shampoos in affordable sachets.

Oral Care:-

The oral care market can be segmented into toothpaste - 60 per cent;

toothpowder - 23 per cent; toothbrushes - 17 per cent. The total toothpaste

market is estimated to be around Rs. 3,500 Cr. The penetration level of

toothpowder/toothpaste in urban areas is three times that of rural areas. This

segment is dominated by Colgate-Palmolive with market share of ~49 per cent,

while HUL occupies second position with market share of ~30 per cent. In

toothpowders market, Colgate and Dabur are the major players. The oral care

market, es-pecially toothpastes, remains under penetrated in India with

penetration level ~50 per cent.

Food & Beverages

Food Segment :-

The foods category in FMCG is gaining popularity with a swing of launches by

HUL, ITC, Godrej, and others. This category has 18 major brands aggregating

Rs. 4,600 Cr. Nestle and Amul slug it out in the powders segment. The food

category has also seen innovations like softies in ice creams, ready to eat rice by

HUL and pizzas by both GCMMF and Godrej Pillsbury.

Tea :-

The major share of tea market is dominated by unorganized players. More than

50 per cent of the market share is capture by unorganized players. Leading

branded tea players are HUL and Tata Tea.

Coffee :-

The Indian beverage industry faces over supply in segments like coffee and tea.

However, more than 50 per cent of the market share is in unpacked or loose

form. The major players in this segment are Nestlé, HUL and Tata Tea.

Growth Prospect

Large Market

India has a population of more than 1.150 Billions which is just behind China.

According to the estimates, by 2030 India population will be around 1.450

Billion and will surpass China to become the World largest in terms of

population. FMCG Industry which is directly related to the population is

expected to maintain a robust growth rate.

Spending Pattern

An increase is spending pattern has been witnessed in Indian FMCG market.

There is an upward trend in urban as well as rural market and also an increase

in spending in organized retail sector. An increase in disposable income, of

household mainly because of in-crease in nuclear family where both the

husband and wife are earning, has leads to growth rate in FMCG goods.

Changing Profile and Mind Set of Consumer

People are becoming conscious about health and hygienic. There is a change in

the mind set of the Consumer and now looking at “Money for Value” rather

than “Value for Money”. We have seen willingness in consumers to move to

evolved products/ brands, because of changing lifestyles, rising disposable

income etc. Consumers are switching from economy to premium product even

we have witnessed a sharp increase in the sales of packaged water and water

purifier. Findings according to a recent survey by A. C. Nielsen shows about 71

per cent of Indian take notice of packaged goodsʹ labels containing nutritional

information compared to two years ago which was only 59 per cent.

Advantages to the Sector

Governmental Policy

Indian Government has enacted policies aimed at attaining international

competitiveness through lifting of the quantitative restrictions, reducing excise

duties, and automatic foreign in-vestment and food laws resulting in an

environment that fosters growth. 100 per cent ex-port oriented units can be set

up by government approval and use of foreign brand names is now freely

permitted.

Central & State Initiatives

Recently Government has announced a cut of 4 per cent in excise duty to fight

with the slowdown of the Economy. This announcement has a positive impact

on the industry. But the benefit from the 4 per cent reduction in excise duty is

not likely to be uniform across FMCG categories or players. The changes in

excise duty do not

impact cigarettes (ITC, Godfrey Phillips), biscuits (Britannia Industries, ITC) or

ready-to-eat foods, as these prod-cuts are either subject to specific duty or are

exempt from excise. Even players with manufacturing facilities located mainly

in tax-free zones will also not see material excise duty savings. Only large

FMCG-makers may be the key ones to bet and gain on excise cut.

Foreign Direct Investment (FDI)

Automatic investment approval (including foreign technology agreements

within specified norms), up to 100 per cent foreign equity or 100 per cent for

NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of

the food processing sector except malted food, alcoholic beverages and those

reserved for small scale industries (SSI).

There is a continuous growth in net FDI Inflow. There is an increase of about

150 per cent in Net Inflow for Vegetable Oils & Vanaspati for the year 2008. 8

SECTOR

Market Opportunities

Vast Rural Market

Rural India accounts for more than 700 Million consumers, or ~70 per cent of

the Indian population and accounts for ~50 per cent of the total FMCG market.

The working rural population is approximately 400 Millions. And an average

citizen in rural India has less than half of the purchasing power as compare to

his urban counterpart. Still there is an untapped market and most of the FMCG

Companies are taking different steps to capture rural market share. The market

for FMCG products in rural India is estimated ~ 52 per cent and is projected to

touch ~ 60 per cent within a year. Hindustan Unilever Ltd is the largest player

in the industry and has the widest market coverage.

Export - “Leveraging the Cost Advantage”

Cheap labor and quality product & services have helped India to represent as a

cost ad-vantage over other Countries. Even the Government has offered zero

import duty on capital goods and raw material for 100% export oriented units.

Multi National Companies out-source its product requirements from its Indian

company to have a cost advantage. India is the largest producer of livestock,

milk, sugarcane, coconut, spices and cashew apart from being the second

largest producer of rice, wheat, fruits & vegetables. It adds a cost advantage as

well as easily available raw materials.

Sectoral Opportunities

Major Key Sectoral opportunities for Indian FMCG Sector are mentioned

below:

Dairy Based Products

India is the largest milk producer in the world, yet only around 15 per cent of

the milk is processed. The organized liquid milk business is in its infancy and

also has large long-term growth potential. Even investment opportunities exist

in value-added products like desserts, puddings etc.

Packaged Food

Only about 10-12 per cent of output is processed and consumed in packaged

form, thus highlighting the huge potential for expansion of this industry.

Oral Care

The oral care industry, especially toothpastes, remains under penetrated in India

with penetration rates around 50 per cent. With rise in per capita incomes and

awareness of oral hygiene, the growth potential is huge. Lower price and

smaller packs are also likely to drive potential up trading.

Beverages

Indian tea market is dominated by unorganized players. More than 50% of the

market share is capture by unorganized players highlighting high potential for

organized players.

COMPANY PROFILE

Vision

To be the most trusted and innovative provider of branded fresh fruits, vegetables and

processed food products. In achieving our Vision, we need to build a sustainable and scalable

business by:

Building brands that ride on the ‘Freshness, Wellness & Convenience’ platforms

Focusing on select products and consumer/customer segments which offer higher

potential for value-addition

Focusing on select markets with a sharper focus on the domestic market

Creating high impact on the society at large and our local environment in specific

The company is engaged in providing premium quality fresh produce to the markets

worldwide and promotes world class standards for agricultural practices, progressive farming

techniques, identification and adoption of appropriate technologies.

Mission

The mission is to be a dominant global player in the food industry. To offer consistently high

quality products and aim for value leadership in the fresh produce category. Cutting edge

product development, deployment of appropriate technology, close understanding of the

market trends and consumer needs are the pillars of success of Field fresh foods Pvt. Ltd.

Values

Empowerment

At FieldFresh opinions and decisions of others are respected.Back people are

encouraged to do their best.

Flexibility

Everybody at FieldFresh is willing to learn and adapt to the environment, partners and

customers evolving needs.

Entrepreneurship

They strive to change the status quo.They innovate with new ideas and energies with

a strong passion and entrepreneurial skills.

Transparency

Fieldfresh believes that they must work with honesty, truth and the inmate desire to

do well.

Impact

They are driven by the desire to create a meaningful difference in society.

Initiatives

Field fresh foods Pvt. Ltd is making a sincere and committed attempt to bridge the

current gap between the vast inherent potential of the agri-horticulture sector with the

requirements of the world market.

It has acquired 300 acres of farm land in Punjab which is the fulcrum point of R&D,

Information & knowledge dissemination and crop & varietals trials.

The farm includes 42 acres of state-of-the-art protected cultivation including, poly-

houses, glass and green houses and net houses.

The company aims to engage directly or indirectly over 1 lac people in its operations.

This workforce in turn will enhance social & economic benefits of the community at

large.

Field fresh foods Pvt. Ltd has also partnered with one of India’s leading Agricultural

University, the PAU at Ludhiana, Punjab to share existing manpower resources,

employ PAU graduates and conduct periodic joint training & development

programmes.

Business Approach

Safe food, Quality processed food, good agricultural practices, environment safety,

fair trade practices and high employee welfare standards are the underpinnings of the

business approach.

Joint venture

Field fresh foods Pvt. Ltd is a venture between Bharti Enterprises, one of India’s leading

business groups with interests in telecom, agri business, insurance and Del Monte Foods

India Pvt. Ltd., owned by Del Monte Pacific Limited, which is engaged in the manufacturing

distribution and sales of processed fruits and vegetables products.

Bharti Enterprises, one of India’s leading business groups, and EL Rothschild Limited, on

27th September 2007 announced that it will induct Del Monte Pacific Limited as a strategic

partner in their joint venture with equity of 40%. Bharti will continue to hold 50% in the

company, with Rothschild staying in the company as a minority partner.

Field fresh foods Pvt. Ltd was incorporated with a focus on linking Indian fields with the

world. The company has been exporting fresh fruits and vegetables to key markets including

UK, the Middle East and Europe. The renewed focus of Field fresh foods Pvt. Ltd Ltd will

reflect the changing retail environment and move from just fresh produce to processing.

Given the growing opportunities in the Indian economy, Field fresh foods Pvt. Ltd Ltd plans

to enhance its focus through value added products in the domestic market. It will also evolve

a comprehensive strategy for serving the needs of the Business-to-Business segment. The

company will continue to cater to export markets.

Bharti Enterprises

Bharti Enterprises is one of India’s leading business groups with interests in telecom, agri

business, insurance and retail. Bharti has been a pioneering force in the telecom sector with

many firsts and innovations to its credit. Bharti Airtel Limited, a group company, is one of

India’s leading private sector providers of telecommunications services with an aggregate of

more than 60 million customers as of end of August ‘07, spanning mobile, fixed line,

broadband and enterprise services.. Bharti Teletech is the country’s largest manufacturer and

exporter of telephone terminals. Bharti has a joint venture with ELRo Holdings India Ltd and

Field fresh foods Pvt. Ltd Ltd - for global distribution of fresh fruits and vegetables. It also

has a joint venture - Bharti Wal-Mart Private Ltd. with Wal-Mart for wholesale cash-and-

carry and back-end supply chain management operations in India.

Del Monte Pacific Limited

Listed on the Main board of the Singapore Exchange, Del Monte Pacific Limited is a group

of companies engaged in the production, marketing and distribution of premium-branded

food and beverage products. The Group owns the Del Monte brand in the Philippines, where

it enjoys leading market shares for pineapple juice, juice drinks, processed pineapple, tropical

mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup, and also markets products

under its second-tier brand. Presently, Del Monte Pacific also holds the exclusive rights to

produce and distribute food and beverage products under the Del Monte brand in the Indian

sub-continent. The Group owns Del Monte Foods India Private Limited which is engaged in

the manufacture, distribution and sales of processed fruit and vegetable products. Del Monte

Pacific also owns 100% of Abpak Company Ltd which holds 100% of Great Lakes. Great

Lakes is a premium fruit juice producer in China, which sells juices under the Great Lakes,

Ming Lang, Huanyan, Rouge Mont and Welch’s brands. Operating one of the world’s largest

fully integrated pineapple operations, the Group is the global low-cost producer of pineapple

and has long-term supply agreements with Del Monte trademark owners and licensees

around the world.

With its 20,000-hectare contiguous pineapple plantation in the Philippines, 700,000-ton

processing capacity and a port beside the Cannery, Del Monte Pacific operates the world’s

largest fully-integrated pineapple operation. It is proud of its long heritage of more than 80

years of pineapple growing and processing. It has long-term supply agreements with other

Del Monte trademark owners and licensees around the world.

Del Monte Pacific is 78.5%-owned by NutriAsia Pacific Ltd (NPL). NPL is owned by the

NutriAsia Group of Companies which is in turn majority-owned by the Campos family of the

Philippines. The NutriAsia Group is the market leader in the liquid condiments, specialty

sauces and cooking oil market in the Philippines. Its flagship brands, led by UFC, have more

than 80% market share in the local ketchup and hot chili sauce categories.

Key Competitors

Dabur (Real Juices)

PepsiCo (Tropicana Juices)

Parle Agro (Frooti, Fizz & Saint Juice)

Hindustan Unilever (Kissan Ketchup & Sauces)

Nestle (Maggi Pasta, Tomato Ketchup & sauces)

Heinz ( Ketchup and Sauces)

Coca Cola (Maza & Maint Maid fruit Juice)

Godrej (Jumpin fruit Juice)

ITC (Pasta)

Figaro, Loreto, Fragata, Tify brand s in olive product category.

Management team at FieldFresh Foods Pvt. Ltd

Mr. Rakesh Bharti Mittal, Chairman

Mr. Rolando C. Gapud, Director

Mr. Luis F. Alejandro, Director

Mr. Joselito D. Campos, Director

Mr. Devendra Khanna, Director

Mr. Sanjay Nandrajog, Director

Corporate office Address

Field Fresh Foods Pvt. Ltd.

Golf View Corporate Towers,

6th Floor, Sector-42,

Gurgaon- 122001, Haryana (India)

Tel: 91-124-4276187

Fax : 91-124-4109390

Website: http://www.fieldfresh.in/

PRODUCT PROFILE

Introduction

FieldFresh has an exclusive range of international Del Monte products including fruit drinks,

packaged fruits, ketchup & sauces, and a range of Italian products. More than 100 years old,

Del Monte is one of the largest and best known food product brands globally.

The Joint Venture also announced plans to set up a Greenfield facility near Hosur to produce

a range of Food & Beverage products for the Indian market. The Joint Venture will make an

initial investment of about Rs. 100 crores towards setting up this facility, which is expected

to start operations in September 2010.

This is a significant milestone for the company as this makes the entry of company into the

processed food and beverage segments. India’s fast expanding economy, evolving consumer

needs, and the emergence of organized retail offer tremendous opportunities for growth. This

plan is to bring in significant investment to set up a modern production facility underlines the

commitment to the development of the processed foods sector in India and our intent to

emerge as a leading player.”

Del Monte, one of the most favored brands all across the world, introduced to the Indian

consumers two new mouth-watering sauce variants, ZINGO and TWANGO. The sauces

offer never-before tastes that are certain to take the land of the chutney by storm. The launch

of Del Monte’s new sauces comes after decades of any major product innovation in this

category.

Del Monte ZINGO offers a sweet and spicy surprise capturing the essence of far eastern

cuisine and is a blend of Red chilies, Red Bell Pepper, Garlic and Ginger creating an alluring

Asian taste. With only 29 kcal per serving (20g) and high in dietary fibre ZINGO is a

delicious and spicy treat.

Del Monte TWANGO is a tangy and fruity sauce that brings an unusual twist to regular

tomato based sauces. It offers a never-before combination of juicy and tangy pineapple with

sun kissed ripe tomatoes. With only 30 kcal per serving (20g) and a source of dietary fibre,

TWANGO is a delectable extravagance – a must try for all.

Both sauces can be used as dips and accompaniments for all popular Indian and western

snacks like Sandwiches, Samosas, Kebabs, Tofu Fritters, Pakoras, Omelette and Momos. The

added benefit is that both sauces can also be used for cooking and make excellent curry bases

for traditional Indian/Asian dishes such as crispy honey chilly potatoes and sweet and sour

prawns etc.

“With ZINGO and TWANGO, Brand Del Monte adds yet another incredible line of

products to its already popular ketchup category and its other highly successful ranges of

fruit drinks, packaged fruits and Italian products. The USP of the sauces is that they contain

fresh vegetable and fruit bits. This has delivered admirably on the brand promise of never-

before taste and innovation with these sauces.”

Del Monte ZINGO and TWANGO are available in attractively packed, convenient Easy

Squeeze bottles. Each bottle weighs 520g and is priced at Rs. 75/-.  To encourage trials, Del

Monte will also offer ZINGO and TWANGO sachets to select outlets and institutional

clients.

Del Monte product range

The categories it has chosen to operate in sauces, juices, Italian cuisine and packaged fruit

add up to a market of Rs 4,000 crore, which is growing at 20 per cent per annum. The market

may be large but there are well-entrenched players in the business like Nestle, Hindustan

Unilever, ITC, Heinz, Parle Agro and Dabur. It won’t be easy for FieldFresh to snatch

market share from them.

Will that be good enough? The market for sauces is around Rs 900 crore in the country.

Nestle’s Maggi leads the pack with a market share of 41 per cent, followed by Hindustan

Unilever’s Kissan (26 per cent). The rest of the market is with Heinz, Cremica, Tops and

others. Most of these brands have a host of flavours developed specially for the Indian palate.

Maggi sauces are preferred for their superior taste, trusted for their high quality and

acknowledged for their innovative offerings like Hot & Sweet, Tomato Chilli, Oriental Chilli

Garlic and several others. Nestle has also come out with small packs, called Maggi Pichkoo,

which has extended the market to a whole new set of consumers.

Juices

If flavour is the differentiator for Del Monte sauces, packaging will differentiate Del Monte

juices. Instead of cartons, FieldFresh is selling its juices in aluminium cans. The fruit juice

market in the country, estimated at Rs 2,000 crore per annum, has three distinct sub-

categories: Fruit juice with pulp content of 80 per cent and more (Dabur’s Real, PepsiCo’s

Tropicana), nectar with 40 to 80 per cent pulp (Godrej’s Xs) and fruit drink with pulp of 40

per cent and below (Parle Agro’s Frooti, Godrej’s Jumpin, Coca-Cola’s Maaza). With 20 to

30 per cent pulp, Del Monte sells in the third category. FieldFreh Fruits Pvt. Ltd operate in

the segment which is refreshing and tasty. However, for a consumer, a juice is just a juice,

and he can hardly differentiate. The youth keeps looking for options that are different in

taste, and have a refreshment need as well as a nutritional essence. Of course, FieldFresh

hopes to score with its aluminium cans. They have brought these packs (aluminum cans) in

an Indianised version at quick-service restaurants and low-cost airlines.

Pasta

Del Monte has a whole family of Italian products after having studied the gap in the Indian

market. Most of the products olive oil, pasta and sauces are imported and sell Rs 500-600

crore in a year. Pasta market in India is emerging as the next-preferred healthy snack option.

“There is hardly any brand present here that offers authentic Italian pasta. Del Monte sells

authentic pasta, imported from Italy, in the retail market. FieldFresh will continue to launch

pasta stock-keeping units of the same product type, but in different shapes and varied

measurements soon. Del Monte also offers Spanish olives, whether green or black, pitted or

stuffed or sliced. Its extra virgin olive oil is a healthier alternative as a cooking medium, and

comes in PET break-resistant bottles in 1 litre, 500 ml and 250 ml.

Pasta is not altogether new to the Indian market as sometime back Barilla Pasta, made from

100 per cent durum wheat, came to India through a strategic marketing tie-up with RR

Oomerbhoy. There are also a couple of other imported brands from south-east Asia which are

selling in India. Then ITC’s Sunfeast portfolio was expanded in early 2005 to include

snacking options, pasta being one, besides Aditya Birla Retail’s Feasters. Nestle (Maggi

Pazzta) and ITC (Sunfeast Pasta) have also launched instant pasta. Market estimates suggest

that instant pasta is around 5 per cent of the Rs 1,100-crore market for instant noodles. Some

feel that the real growth opportunities are in instant pasta.

Apart from B2C, FieldFresh also does B2B sales. It sells fresh and canned fruit, penne pasta,

snack dressing, mango pulp, tomato paste, jalapeno, fruit cocktail and whole corn kernels to

2,200 hotels, restaurants, bakeries and so on in the country.

Del Monte Whole Kernel

“Del Monte Whole Kernel Corn picked and packed at the right stage of Maturity to capture

its characteristic sweet taste and flavor”

Convenience

Suitable for most cuisines & desserts as it has no added flavors, easy to carry & store. No

need to refrigerate until open. No preparation time, just open the can and it’s ready to use.

This comes in 420 gram Tin packs of Rs. 55 each.

Health Benefits

Good source of energy and has a rich blend of vitamins and minerals. It is a rich in fiber.

Extra Virgin Olive Oil

Del Monte Extra Virgin Olive Oil, also called liquid gold, comes from the cold pressing of

olives. When consumed in recommended amounts, it can do wonders for overall health and

wellbeing!

Convenience

Extra Virgin Olive Oil is packed in easy pour, unbreakable bottles, available in 3 convenient

pack sizes of 1 liter, 500ml and 250ml of Rs. 540, 290 and 150 respectively.

Health Benefits:

Good source of MUFA and rich source of polyphenols which are useful in various cancers

like colon cancers.

Four Seasons

Del Monte Four Seasons, a unique and delectable fruit drink that encompasses the goodness

of fruits from all four seasons. A refreshing blend of pineapple, mango, orange and guava to

tantalize your taste buds!

Convenience

A unique blend of fruits from different seasons available in trendy cans of 240ml for Rs. 25,

easy to store and carry.

Health Benefits

Naturally fat free, rich in antioxidants and rich source of vitamin A and C.

Del Monte Fiesta Fruit

Del Monte Fiesta Fruit Cocktail is a delightful combination of juicy and crunchy fruits add a

burst of flavor to your everyday dishes!

Convenience

Ready to use and eat and easy to carry and store. No need to refrigerate until open.

Convenient family pack sizes of 836 grams and 439 grams of Rs. 85 and 55 respectively. No

hassles of sorting, washing, peeling, coring and slicing. 

Health Benefits

Naturally fat free. Rich in antioxidants, vitamin A, C and has photochemical which prevent

certain cancers.

Del Monte Olives

Del Monte Olives have excellent flavor, texture and color.  They come from Spain; where

weather, soil and cultivation expertise results in the production of quality olives. Olives can

be used in any recipe, making them delicious and healthy too!

Convenience

Read to use and eat and easy to carry and store. Convenient pack sizes of 450 grams of Rs

135-155 each.

Health Benefits

Good source of MUFA and rich in Vitamin E.

Del Monte Authentic Italian Gourmet Pasta

An ideal meal time delicacy, pasta goes well with most Meats & Vegetables and tastes best

with easy to prepare sauces. Del Monte Authentic Italian Gourmet Pasta is made with durum

wheat semolina, which is best, suited to high quality dry pasta.

Convenience

Easy to carry and store, convenient family pack size of 500 grams of Rs. 100-125. There are

five varieties of Pasta, they are Spaghetti (Rs. 100), Penne Rigate(Rs. 105), Spirali(Rs. 115),

Chefferi Rigati (Rs. 105) and Spirali Tricolor(Rs. 125)

Health Benefits

Zero Tran’s fat and good source of energy.

Del Monte Pineapple Fruit Drink

Del Monte Pineapple Fruit Drink, a delicious fruit drink with refreshing real pineapple pulp

and juice in every sip & bite!

Convenience

Available in trendy cans of 240ml for Rs. 25, easy to store and carry

Health Benefits

Naturally fat free, Good source of vitamin C and Rich in antioxidants. Excellent source of the

vitamin B1 aka thiamine.

Del Monte Pineapple Orange Fruit Drink

Del Monte Pineapple orange fruit drink blends the goodness of pineapple and orange to

revitalize you with every sip.  Its refreshing taste is delectable and it’s naturally fat-free too!

Convenience

Available in trendy cans of 240ml for Rs. 25, easy to store and carry

Health Benefits

Naturally fat free, good source of vitamin C, Rich in antioxidants and Excellent source of the

vitamin B1 (thiamine)

Del Monte Pineapple Slices

Del Monte Pineapple slices are high grade ripened pineapples handpicked, cut and packed

within 24 hours.

Convenience

No hassles of washing, sorting, peeling, and slicing. Easy to carry and store. Convenient

family packs sizes of 836 gram and 439 gram cans available for Rs. 85 and 55 respectively.

Health Benefits

Naturally fat free, it has no artificial preservatives. Good source of vitamin C and rich in

antioxidants. Excellent source of the vitamin B1 (thiamine) and has phytochemicals which

prevent certain cancers.

Del Monte Pineapple Tidbits

Del Monte Fresh Cut Pineapple Tidbits come from high grade ripened pineapple.. Each

pineapple is hand-picked, cut and packed on the same day, to lock in sweet taste, freshness

and nutrients to offer the best quality product!

Convenience

Regular cut tidbits in uniform size, ready to eat. Easy to carry cans available in 836 gram can

of Rs. 80. Minimizes labor time, and has no hassles of sorting, washing, peeling& coring.

Health Benefits

No artificial preservatives, naturally fat free. It has phyto chemicals and antioxidants that

prevent certain cancers. This is a good source of vitamins like B1 (thiamine) and C.

Del Monte Premium Pitted Prunes

Del Monte Premium Pitted Prunes, a ready-to-eat power snack from California. Consumed in

recommended amounts, Prunes offer a wide range of health benefits for a healthier you!

Convenience

Re-sealable zipper bag of 340 gram is available for Rs. 180. Re-sealable zipper bag ensures

freshness. These are ready to use and eat.

Health Benefits

Naturally fat free, no added sugar. This is rich in dietary fiber and is excellent source of

phytonutrients and antioxidants. This is a natural laxative and is rich in potassium which

maintains healthy eyes, hair, skin and nails.

Del Monte Tomato Chilly Sauce

Del Monte Tomato Chilly Sauce is a tangy and pungent sauce made with high quality tomato

paste with a hint of red chillies, matured in brine. Sure to give any meal an added kick!

Convenience

This is ready to use and store. This is available in convenient pack sizes.

Health Benefits

Good source of Lycopene and is rich in vitamin C

Del Monte Tomato Ketchup

Del Monte Tomato Ketchup, made from high quality tomato paste and secret blend of spices

& natural fragrant oils.  Wholesome, rich taste and flavor, guaranteed!

Convenience

Available in easy squeeze 520 gram bottle of Rs. 65 and in 10 g sachets of Rs. 1.25 - ideal in

takeaways & packed meals for office, school Tiffin’s and picnics. Tomato ketchup is also

available in 1 kg and 200 gram glass bottle of Rs. 97 and Rs. 33 respectively.

Health Benefits

Good source of Lycopene and rich in vitamin C.

Del Monte Twango

Del Monte TWANGO is a tangy and fruity sauce specially aimed at the younger audiences,

and brings a twist to the tomato taste with a splash of the goodness of pineapple.

Convenience

Available in easy squeeze 520 gram bottles of Rs. 75 and in sachet of Rs. 1.25

Health Benefits

This is delicious blend of fruit and vegetable. This is a Source of lycopene. Naturally

cholesterol & Fat free.

Del Monte Zingo

Del Monte ZINGO offers the essence of far eastern taste with a sweet and spicy blend of Red

chillies, Red Bell Pepper, Garlic and Ginger. With only 36 kcal per serving (25g), real

chopped vegetables content, it is a delicious treat for all.

Convenience

Available in easy squeeze 520 gram bottle of Rs. 75 and sachet of Rs. 1.25

Health Benefits

This is high in Dietary Fiber and naturally cholesterol free.

BUSINESS QUALITY OBJECTIVES

Quality Excellence at FieldFresh

FieldFresh ensures best-in-class facilities, business practices and quality standards through

technological innovations, international quality management systems and food safety

initiatives. Our Quality Management System (QMS) operates on

Right First Time

Zero Tolerance

The above is achieved through critical interventions in processes wherever applicable, so that

only top-class quality products reach our end consumers. To pave the way in farming

practices, the company has complied with Global GAP guidelines not only in company

managed farms but across all partner farms. Our growing partners are spread across the

following states:

Punjab - Baby Corn, French Peas

Maharashtra - Sweet Corn & Baby Corn

Gujarat and Andhra Pradesh – Mangoes

State-of-the-art laboratory facilitates physical, chemical and microbiological analysis of the

raw materials and packaging materials through the entire manufacturing cycle. Continuous

focus on packaging development and innovative solutions has enabled FieldFresh to meet the

superior packaging requirement of our discerning customers. At FieldFresh, food safety and

consumer health is the top most priority. This is clearly reflected in the manufacturing

facility and packhouse being certified under:

Food Safety Management Systems (FSMS) (ISO:22000:2005)

BRC – British Retail Consortium

Environment Health & Safety (EHS) is an integral part of FieldFresh business practices.

Focus on EHS is driven via

Process Mapping

Regulatory and Food Safety Audits

Reviews of Certifications

Agri Centre Of Excellence (ACE)

FieldFresh Agri Centre OF Excellence (ACE) at Ladhowal, Ludhiana, Punjab was

inaugurated by Dr. Manmohan Singh, Hon’ble Prime Minister of India on 27 th September,

2006.  ACE comprises of 300 acres of farming, developed for open and protected cultivation.

The activities that have gone into making ACE truly a centre of excellence is:

Partner Farming

Farmer Training

Open Cultivation

Crop Development

132 acres of Micro Irrigation

42 acres of Spanish designed protected cultivation

- Bell Peppers and Cherry Tomatoes grown in Glass Houses

- Chilly Nursery in Green Houses

- Cauliflowers in Net Houses

24 x 7 technical supports to our partner farmers.

 A state-of-the-art processing facility and pack house has been set up with vegetable

processing capacity of over 250 tons and a cold-storage capacity of 500 metric tons built over

7500 meters. The facility takes pride in the following certifications:

GLOBALGAP Certified Operations

ISO 22000 Certified Pack house

BRC (British Retail Consortium) Certification for the Pack house

Figure 1.3 Rigid Quality control at FieldFresh

ACE, under a tie-up with the Punjab Agricultural University (PAU) has hired over 40

graduates and post graduates for Research and Development work which is an ongoing

endeavor towards achieving farming excellence.

ORGANIZATIONAL STRUCTURE

Introduction

A key issue in accomplishing the goals identified in the planning process is structuring the

work of the organization. Organizations are group of people, with ideas and resources,

working toward common goals. The purpose of the organizing function is to make the best

use of the organizations resources to achieve organizational goals. Organizational structure is

the formal decision making framework by which job tasks are divided, grouped, and

coordinated. Formalization is an important aspect of structure. It is the extent to which the

unit of the organization is explicitly defined and its policies, procedures, and goals are clearly

stated. It is the official organizational structure conceived and built by top management. The

formal organization can be seen and represented in chart form .an organization chart displays

the organizational structure and shows job titles , lines of authority and relationship between

departments.

Types of Organization Structure

I. Functional structure

Under the functional type of organization, all identical activities are grouped

together under one functional department. Each functional department is

managed by an executive who is a specialist in his own field. There may be a

separate department based on important functions such as finance, marketing,

personnel.

II. Divisional structure

In a divisional organization, corporate divisions operate as relatively autonomous

businesses under the larger corporate umbrella. In a conglomerate organization,

divisions maybe unrelated. Divisional structures are made up of self-contained

strategic business units that each produces a single product. Functional

departments accomplish division goals. A weakness however, is the tendency to

duplicate activities among divisions.

III. Matrix Structure

In a matrix organization, teams are formed and team members report to two or

more managers. Matrix structure utilizes functional and divisional chains of

command simultaneously in the same part of the organization, commonly for

one-of-a-kind project. It is used to develop a new product, to ensure the

continuing success of a product to which several departments directly contribute,

and to solve a difficult problem. By superimposing a project structure upon the

functional structure, a matrix organization is formed that allows the organization

to take advantage of new opportunities. This structure assigns specialists from

different functional departments to work on one or more projects being led by

project manager.

Patterns of Authority

The delegation of authority creates a chain of command, the formal channel that defines the

lines of authority from the top to the bottom of an organization. The chain of command

consists of a series of relationships from the highest position in the organization to the

lowest. The chain of command specifies a clear reporting relationship for each person in the

organization and should be followed in both downward and upward communication.

Following the chain of command enables each new employee, no matter what his or her

position, to know exactly for whom and to whom he or she is responsible.

When designing an organizational structure, managers must consider the distribution of

authority. Defined simply, authority is the organizationally sanctioned right to make a

decision. Authority can be distributed throughout an organization or held in the hands of a

few select employees. Decentralization is the process of distributing authority throughout an

organization. In a decentralized organization, an organization member has the right to make a

decision without obtaining approval from a higher-level manager.

In recent years, as organizations have expanded, decentralization has become a more frequent

style of operation. Decentralization has several advantages. Managers are encouraged to

develop decision-making skills, which help them advance in their careers. The autonomy

afforded by this style of operation also increases job satisfaction and motivation.

Span of Control

Span of control refers to the number of people who report to one manager or supervisor. A

wide span of control results in a flat organization— that is, a large number of employees

reporting to one supervisor. A narrow span of control results in a tall organization, in which a

small number of employees report to a supervisor, necessitating a larger number of

supervisors. No formula exists for determining the ideal span of control. The following

factors determine the most appropriate span of control: task similarity, training and

professionalism, task certainty, frequency of interaction, task integration, and physical

dispersion.

When a large number of employees perform similar tasks, the span of control can be

increased. When the employees perform very different tasks, the supervisor must give each

subordinate more individual attention in order to keep in touch with the different types of

tasks; this requires a narrower span of control. Task certainty refers to the predictability of a

task. Routine tasks allow management to devise standard procedures for subordinates to

follow, minimizing questions about the job and widening the span of control. On the other

hand, close supervision is called for when tasks are ambiguous and uncertainty is great.

Figure 1.4 showing Span of Control: (a) Wide Span of Control (flat organization); (b) Narrow Span of Control (tall organization)

Organizational Structure of FieldFresh Foods Pvt. Ltd

Figure 2.2 Organizational Structure of FieldFresh

CEO

COO

VP MarketingVP Production VP HR VP Finance

National sales Manager

Regional sales Manager South

Regional sales Manager North

Regional sales Manager East

Regional sales Manager West

ASM Food Services

South

ASM TN &

Kerala

ASM Andhra Pradesh

ASM Karnataka

Senior Executive Marketing

South

Finance

Senior Executive FinanceBangalore Rest of

Karnataka

TSM General

Trade

TSM Modern

Trade

Six Business Development

Executives

Five Business Development

Executives

Five Business Development

Executives

Senior Executive

Summary:

Mr. Sanjay Nandrajog, CEO, FieldFresh Foods Pvt Ltd is heading top level position in all

departments in the organization. The organization structure fluctuates based on the

availability of staff. There will be different assistant managers in the middle level positions in

sales & marketing division to look after different segments like food services. The sales

executives are the lower level position in the marketing division.

The organization structure reflects FieldFresh's strategic intent to lead, build & grow in

businesses that make a positive difference to the lives of people. The structure strengthens

empowerment & accountability for business, thereby enhancing the existing high degree of

professionalism in the group. Bharti Enterprises will be the strategic architect of all functions

of FieldFresh and will provide overall direction and macro strategies. Responsibility for

business strategy, operations & its results will reside with the business heads of the

companies with Bharti Enterprises having a supervisory role.

Bharti Enterprises will also be responsible for evaluating new business opportunities,

Mergers & Acquisitions and Strategic alliances for the group. In addition, it will ensure a

high quality pipeline of top leadership talent and be the custodian of Bharti’s brand values

and business interests.

The Group Lead Directors have been assigned specific areas and will review the performance

of the respective businesses, maintain relationships with joint venture partners and provide

all necessary assistance from the group level, including funding, external relations etc.

FUNCTIONING OF DEPARTMENTS

Human Resource Department

Introduction

Human resources department is the important department which is very essential for the

betterment of the organization. For this sugar organization, a little bit differences in the

scope, approach in HR concept is required, because here people think differently and expect

differently, around 80 per managers spend time in handling of human resources. A very

common problem always exist is conflict in intra-department or in worker and management,

so HRM play as a tool to resolve this problem efficiently.

Human resource department is playing a very crucial role in the organization and it is helping

out to carry out the all the functions in the organization effectively. In FieldFresh Foods Pvt.

Ltd department heads will forecast man power requirement and send the report containing

detailed information regarding the required number of candidates, qualification required. The

report will be sent to the HR department. Issue is discussed with the management and

decision is taken after a detailed discussion. If the requirement of human resources is

confirmed then the HR department will take proper steps.

Fieldfresh recognizes that its people are the key to its continued expansion and growth.

Therefore, the Company puts a great deal of emphasis on talent acquisition, development,

retention and motivation. On the acquisition front, the company has a well-developed

Programme, which is a cross-departmental training programme designed for new recruits,

and ensures a regular talent flow within the company. On the training and development front,

company has spent considerable time in enhancing skills of its sales force.

OBJECTIVES

To recruit quality personnel & to provide necessary training and development etc

To poster commitment for the individuals to the success of the company through a

quality orientation in their performance and that of the whole organization

To utilize people to their full capacity by providing them meaningful jobs, tasks,

responsibilities and recognition & uplift the moral of employees

To encourage willingness to operate flexibly in the interests of the adaptive

organization and the pursuit of excellence

FUNCTIONS

Recruitment

A fresher to the company is appointed on probation for 6 months from the date of joining.

The period of probation may be decreased or increased at the discretion of the competent

authority.

Target setting and performance appraisal

The performance appraisal of an employee takes place every year during the month of

March, where in the individual discuss with his superior about the targets, job plan, areas of

training and development. Criterion for performance appraisal is as follows:

Individual Task outcomes

Process

Traits and Behaviors of individuals related to jobs/performance.

Promotion and transfer

In determining an employee’s eligibility for promotion or transfer the company shall look

into, but not limited to, the following criteria

Experience & Past performance

Ability to perform the essential function of the job

Educational background

Attendance record over the last 12 months

Training and development

Based on the performance appraisal each year the training need analysis is done by the HR

department. The needs are addressed by conducting soft skills and functional training to

enhance the efficiency level of individuals.

Top management Frames policy of training

Personnel Department Plants establishes and evaluate programme

Supervisors Implement and apply training programme

Employees Provides feedback, revision and suggestions.

Motivational Activities

Motivating the employees to make them perform their better is one of the major functions in

the performed here. Awarding the best performers of the week in each section of the

departments is one of the best motivating factors. It helps in motivating the employees in

operational level and managerial level.

Human Resources Development

Human resource development (HRD) is phenomenal for this Industry. HRD deals with up

gradation of skills for labours and executives, planning and allocation of work, monitoring

and assessment of performance. One of the most important tasks is upgrading the skills and

knowledge of the human resource from time to time. This up gradation is done through

training and workshop/seminars. HRD activities result in increased productivity, reduced cost

and wastage, rightsizing of labour and staffs at the organization, organizational stability and

flexibility to adapt to future changes. At the managerial level different developmental

programs are scheduled and compulsorily undertaken.

Referral policy

In FieldFresh Foods Pvt. Ltd all employees act as a Brand Ambassadors of the organization

who plays a vital role by spreading positive word of mouth about the company, recognizing

positive talent and promoting them so that the company can invest in good talent and in turn

they can contribute to the organization

Work culture at FieldFresh Foods Pvt. Ltd

Friendly & formal work culture founded on principles of mutual respect co-operation, trust &

human values.

An opportunity to satisfy your economic needs o consistent with the prevalent

business environment.

A performance driven work culture and open to new ideas and suggestions from all

Team members.

Career path for FieldFresh Foods Pvt. Ltd Employees

Fast paced enriching career with exposure to best business practices

A chance to be at the forefront of using cutting edge technologies that redefine

business in today’s markets.

Excellent compensation & opportunities for growth/promotion based on merit

opportunities for training recreation & social interaction.

Progressive HR policies with an open door approach & proactive processes to

maintain high morale.

Opportunities

They are committed people, they work towards creating an environment in which

employees can perform their best and thus provide quality service, service that is

customer oriented.

They Enable Encourage and Empower Employees to learn, look for the following

attributes in individuals when they hire: Communication, Teamwork, Quality

Consciousness, Customer Focus and Results Orientation!

MARKETING DEPARTMENT

Introduction

Marketing is the link between society’s material requirements and its economic patterns to

the response to the product, price, promotion and physical distribution and its main

component’s.

The distribution is the key link between the production and marketing function. The

distribution system helps the manufacturer to reach the customers in earliest possible time;

this system begins with manufacturing of the product and ends in the hands of customer,

giving his satisfaction. Effective distribution helps every organization to achieve maximum

efficiency with achievable targets, it enhances profit maximization goals.

The distribution planning involves the decision making on various areas like, warehousing,

plan location, inventory level, and transportation facilities that are designed to supply product

to the customer.

OBJECTIVES

To provide support to all its sales departments, promotional activities

Customer satisfaction is primary objective of FieldFresh Foods Pvt. Ltd.

To develop an intelligence in appreciation of modern changes.

To provide guiding polices regarding marketing procedure and their implementation.

To analyze the shortcoming in the existing pattern of marketing.

To enable successful distribution of the products.

FUNCTIONS

Providing marketing material

Enabling new branch setup

Events/stalls conducted by branches

Occasions like New year, Diwali and Budget

Market commentary and Research reports

Providing Marketing Material

Marketing Materials like Flyers, promos, brochures, paper inserts, brochure holders etc, are

handled marketing department as and when required. The requirement can be for re-printing

the old material or designing and printing new material.

The task includes,

Content writing for material

Getting the design from agency

Collating material requirements from regions

Negotiating for price and getting the material printed

Customer satisfaction

Whether the buyer is satisfied after purchase depends on the offer’s performance in relation

to the buyer’s expectations. In general satisfaction is person’s feeling of pleasure or

disappointment resulting from comparing a product perceived performance in relation to

his/her expectations.

Customer satisfaction is a function of perceived performance of expectation, if the

performance falls short of expectations the customer is dissatisfied. If the performance

matches the expectations, the customer is satisfied. If the performance exceeds expectations

the customer is highly satisfied or delighted.

Multi product offering across different product category driven by research

Customer centric approach and have customers to move up the value chain

Effectively use technology to segment customers

Extend presence in international markets.

Promotional Strategies

Promotion is a single element of and advertising campaign. It is a collection of incentive

tools, mostly short term, designed to stimulate quicker or greater purchase of particular

products or services by consumers or the trade, it might be a short-term price reduction,

contest or sweepstakes.

Promotion is a part of 4Ps of marketing business strategies, which is widely used by the

companies to inform, influence, or persuade existing and potential customer about the

company’s product or services, Marketing itself combines a broad range of business

activities, where marketing mixes helps the companies a broad range of business activities,

where marketing mix helps companies to achieve its objectives and total customer

satisfaction.

FieldFresh hopes to rev up the excitement at the youth hangouts with its on-ground activity,

the Del Monte Legend Brigade. The activation that started during mid-June will travel to

metros and mini-metros where the winner will receive a custom-made bike worth Rs

200,000. Besides, an online biker game is on at its microsite, www.worldfoody.com. Anyone

in India can participate in the online game and experience the thrill of biking. This initiative

aims to popularise the range of Del Monte fruit drinks in pineapple, four seasons, pineapple-

orange and the newly-launched green apple and orange flavours.

Sales promotion

In Specific sense sales promotion includes those sales activities that supplement both

personal selling and advertising and coordinate them not in an ordinary routine to make them

effective. Recently as an initiative to promote the products of the company, they have

recently hired Shafali Shah as a brand ambassador. The company also tied up with ‘Gladrags

Mrs India’ as a brand promotion initiative recently

FINANCE DEPARTMENT

Introduction

Finance is the lifeblood of any business it is concerned with the activation of funds and wide

application on the funds. The success of a business lies with the effective management of

finance in the company. Finance management is that managerial activity, which is consumed

with the planning and controlling of the firm’s financial resources.

It is the most important department in which most of the functions are carried out such as

accounting, planning, mobilization and effective utilization of funds.

OBJECTIVES

Dealing with Banks and finance institutions.

To monitor the budget and budgetary control.

Monitoring the funds, collection and payments.

Finance planning and mobilization of cash.

Controlling inflow and outflow of cash.

To exercise cost control and cost reduction techniques.

To see that financial interest of the company.

To protect the financial interest of the company.

It helps in achieving the business results profitably.

Waste management.

FUNCTIONS

Allocation of funds

Rising of funds

Profit planning

Book keeping and accounting

Financial control

Preparation of financial statement

.PRODUCTION AND OPERATION DEPARTMENT

Introduction

The production function of an organization is that which produces the organization products.

In some organization the product is physical goods while in others it is a service.

The production function includes conversion process, some resources input into the process;

the output’s resulting from the conversion of input’s and information feedback about the

activities in the productions function. Once goods and services are produced they are

converted into cash to acquire more resources to keep the conversion process alive.

The rapid change in technology and globalization of market are putting pressures on

industries to be comparative for their survival and growth. Quality, reliability, cost.

Productive and delivery schedule have become the watchwords of industries. Thus

manufacturing has become an important strategic issue in the current techno-economic

scenario. Organizations are required to plan executive and control the operations strategically

to meet the customer requirements.

Objectivity of Production Management

The objectives of production management can be stated as to manufacture goods and / or

service of right quality at the pre-determined time and pre-established cost object.

Right quality

Right quantity

Pre-determined cost

Pre-determined time.

Important Functions of Production System

Production is an organized activity and it as specific goals and objectives to achieve.

Production system is sub system of large organization.

Production system transformers various inputs (Men, Machine, Material, etc ) into

useful out puts (Goals and services)

There exists a feedback system, which helps to take steps to improve the performance

of the productivity system.

Scope and Objective of Production Management

Production management objectives are aimed at satisfying the needs of the customers though

offering organizational product and services. The scope of the production management can

be considered from the point of view of both strategic and operational level decisions

affecting them.

The strategic level decision ate mainly concerned with the design of the product and

production system, which have long-term implication. They are mainly concerned with

planning and control of production activities. The scope and activity at the operational level

are.

Production planning

Production control

Other activities include inventory control maintenance and replacement, cost

reduction and cost control, work system design.

All the Del Monte products is being imported from outside. Presently there is no production

facility for Del Monte products in India. In India only fresh fruits and vegetables are being

packed for export. Fieldfresh Fruits Pvt. Ltd is all set to start processing unit in Housur Tamil

Nadu, in September 2010. This will produce the company’s entire functional processed

foods’ range of canned juices, sauces, mayonnaise and mustard. It will also take care of the

production of polyethylene terephthalate (PET) bottles for their fruit juices, which it will be

introducing in India for the first time. The company currently imports the entire product line

and the import duty on such products is 37 per cent.

SWOT Analysis

Introduction:

SWOT analysis is a simple framework for generating strategic alternatives from a situation

analysis. It is applicable to either the corporate level or the business unit level and frequently

appears in marketing plans. SWOT (sometimes referred to as TOWS) stands for Strengths,

Weaknesses, Opportunities, and Threats. The SWOT framework was described in the late

1960's by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and William D.

Guth in Business Policy, Text and Cases (Homewood, IL: Irwin, 1969). The General Electric

Growth Council used this form of analysis in the 1980's. Because it concentrates on the

issues that potentially have the most impact, the SWOT analysis is useful when a very

limited amount of time is available to address a complex strategic situation. The following

diagram shows how a SWOT analysis fits into a strategic situation analysis.

Figure 4.1 Situational Analysis

The internal and external situation analysis can produce a large amount of information, much

of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter

to reduce the information to a manageable quantity of key issues. The SWOT analysis

classifies the internal aspects of the company as strengths or weaknesses and the external

situational factors as opportunities or threats. Strengths can serve as a foundation for building

a competitive advantage, and weaknesses may hinder it. By understanding these four aspects

of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on

golden opportunities, and deter potentially devastating threats.

Internal Analysis

The internal analysis is a comprehensive evaluation of the internal environment's potential

strengths and weaknesses. Factors should be evaluated across the organization in areas such

as:

Situation Analysis

Strengths Weakness

   Opportunity   

Threats

Internal Analysis

External Analysis

Company culture

Company image

Organizational structure

Key staff

Access to natural resources

Position on the experience curve

Operational capacity and efficiency

Brand awareness

Market share

Financial resources

Exclusive contracts

Patents and trade secrets

The SWOT analysis summarizes the internal factors of the firm as a list of strengths and

weaknesses.

External Analysis

An opportunity is the chance to introduce a new product or service that can generate superior

returns. Opportunities can arise when changes occur in the external environment. Many of

these changes can be perceived as threats to the market position of existing products and may

necessitate a change in product specifications or the development of new products in order

for the firm to remain competitive. Changes in the external environment may be related to

Customers

Competitors

Market trends

Suppliers

Partners

Social changes

New technology

Economic environment

Political and regulatory environment

The last four items in the above list are macro-environmental variables, and are addressed in

a PEST Analysis. The SWOT analysis summarizes the external environmental factors as a

list of opportunities and threats.

SWOT Analysis Limitations

While useful for reducing a large quantity of situational factors into a more manageable

profile, the SWOT framework has a tendency to oversimplify the situation by classifying the

firm's environmental factors into categories in which they may not always fit. The

classification of some factors as strengths or weaknesses, or as opportunities or threats is

somewhat arbitrary. For example, a particular company culture can be either strength or a

weakness. A technological change can be a either a threat or an opportunity. Perhaps what is

more important than the superficial classification of these factors is the firm's awareness of

them and its development of a strategic plan to use them to its advantage.

SWOT Analysis of Field fresh foods Pvt. Ltd

Strengths

The strengths of a business or organization are positive elements, something they do well and

is under their control. The strength of a company or the group and value to it, and can be

what gives it the edge in some areas over the competitors. The following will outline main

strength of Field fresh foods Pvt. Ltd.

Del Monte as company is operating since 1892 successfully, so it has got a very

strong customer loyalty.

Better produce quality & consistency as compared to other producers

Wide product range

Competitive prices as compared to other producers

Only leading baby corn processor in India.

Field fresh foods Pvt. Ltd have an international operation as it is exporting packaged

Fruits and vegetables.

High quality products are a vital strength, helping to ensure customer return to Del

Monte.

Weaknesses

Weaknesses of a company or organization are things that need to be improved to perform

better, which are under their control. Weaknesses are also things that place behind

competitors, or stop you being meet objectives. This section will present main weaknesses of

Field fresh foods Pvt. Ltd.

Company lacks behind in advertising strategy. The company is not much focused

about advertising its products compare to its competitors.

Online presence is vital for success these days, and lack of one is a limitation for

Field fresh foods Pvt. Ltd.

FieldFresh foods Pvt. Ltd have some line of products of Olives and Pasta which is

mainly to cater the niche market hence the profitability is low.

FieldFresh Foods has 14,000-15,000 general outlets and about 1,000 outlets in

modern trade. But the company has no immediate plans to enter the rural markets.

Opportunities

Opportunities are the external changes, trends or needs that could enhance the business or

organizations strategic position, or which could of a benefit to them. This section will outline

opportunities that Field fresh foods Pvt. Ltd Ltd is currently facing.

Migration to niche and value added segments

Rising income levels i.e. increase in the purchasing power of the consumers.

Large domestic market- a population of over one billion.

India faces severe post harvest loss of fresh fruits and vegetables every year. So there

is a great scope in this field to reduce post harvest loses.

Projected increase in demand higher than supply

Threats

High price of certain category of products which may not be affordable for all class of

people.

Competition from established players, such as PepsiCo, Hindustan Lever and

homegrown Dabur.

Heinz and Smith & Jones are trying to capture the market.

The recent trend of price reduction by MNCs could be a major threat to the company,

as Bharti Del Mote is following quality based pricing strategy.

CORPORATE SOCIAL RESPONSIBILITY

Introduction

Corporate Social Responsibility is the continuing commitment by business to behave

ethically and contribute to economic development while improving the quality of life of the

workforce and their families as well as of the local community and society at large. It

respects cultural differences and finds the business opportunities in building the skills of

employees, the community and the government.

CSR is much more focused on operating the core business in a socially responsible way,

complemented by investment in communities for solid business case reasons. Personally, I

believe this model is more sustainable because:

1. Social responsibility becomes an integral part of the wealth creation process - which

if managed properly should enhance the competitiveness of business and maximize

the value of wealth creation to society.

2. When times get hard, there is the incentive to practice CSR more and better - if it is a

philanthropic exercise which is peripheral to the main business, it will always be the

first thing to go when push comes to shove.

Companies need to answer to two aspects of their operations.

1. The quality of their management both in terms of people and processes (the inner

circle).

2. The nature and quantity of their impact on society in the various areas.

Outside stakeholders are taking an increasing interest in the activity of the company. Most

look to the outer circle - what the company has actually done, good or bad, in terms of its

products and services, in terms of its impact on the environment and on local communities,

or in how it treats and develops its workforce. Out of the various stakeholders, it is financial

analysts who are predominantly focused - as well as past financial performance - on quality

of management as an indicator of likely future performance.

But as with any process based on the collective activities of communities of human beings

(as companies are) there is no "one size fits all". In different countries, there will be different

priorities, and values that will shape how business act. And even the observations above are

changing over time. The US has growing numbers of people looking towards core business

issues.

CSR at FieldFresh Foods Pvt. Ltd:

At FieldFresh Foods Pvt. Ltd. business strategies is aligned with greater socio-economic

goals.

FieldFresh believe in:

Nation building beyond the call of duty

Sustainable societies lead to the creation of successful enterprises

The organization’s management team is committed towards its Corporate Social

Responsibility (CSR) initiatives and the same are driven through an activity calendar.

Adoption of Satya Bharti Schools

As a first step towards the above commitments, FieldFresh Foods management decided to

fully adopt Satya Bharti School at Ladhowal, Ludhiana (Punjab) and Satya Bharti School at

Kali Pahari, Neemrana (Rajasthan). They have committed there selves to bearing their annual

operating expenditure of Rs.10Lacs and are truly committed to the cause of holistic

development of the school. The company’s employees visit the school regularly to contribute

their time and their resources at various occasions.

Volunteering Programmes at FieldFresh Foods

Growing – doing what we are best at!!!

Volunteers from FieldFresh Foods set up a kitchen garden in the backyard of the

school at Ladhowal, sowing seeds for a variety of vegetables. Children were taught to

care for, and nurture their plot of the kitchen garden. The vegetables harvested

thereof, were later used to prepare the mid day meals for the children. FieldFresh’s

volunteers have also played a vital role in replicating the same model to other Satya

Bharti Schools in Punjab and Haryana as well. Indeed a baby step towards creating

awareness on the ecological balance.

All work & no play!

Volunteering at Satya Bharti School – Neemrana

Volunteers from FieldFresh Foods conducted a range of activities at Satya Bharti

School, Peepali, Neemrana. The major initiative driven here, was that of setting up a

Badminton court for the children to play. One of FieldFresh’s employees, a martial

art student himself, conducted a session on fundamentals of Tae-Kwon-Do for

children. No volunteering activity would be complete without us creating awareness

about the environment and saplings were planted by the company’s employees in the

school campus.

Health & safety first – Preventive healthcare drives

Employees at FieldFresh Agri Centre of Excellence rose to the need of the hour and

contributed towards buying mosquito nets during the outbreak of Dengue. These were

distributed amongst the underprivileged community residing in the nearby high risk

areas. Employees also spread awareness about the preventive measures to be adopted

during the dengue outbreak.

At nature’s best – preparing vermi compost

Technical experts from the company trained villagers, such that, they could

independently start preparing vermi compost from bio-degradable waste,

championing, sustainable & good agricultural practices – going the organic way.

ACT – A Caring Touch

The employees of the company contribute on a monthly basis through a voluntary

donation programme, to support initiatives of the schools, under the aegis of Bharti

Foundation

A collective effort

The energy and enthusiasm of the employees in contributing to the society also

rubbed off on to the company’s business associates. Labor contractors of the

company partnered with employees in catering to the utensils requirement for Mid

Day Meals for the children at Satya Bharti School, Ladhowal. This initiative truly

made company believe and live the saying – “Vasudyaiva Kutumbakam – the World

is One Family”.

FINDINGS

The major findings of study are as follows;

The company’s core strength is team work and instant motivation from the top

management. The involvement of MD in all departmental operations inspires the

employees to work together and achieve the company task with team spirit.

Inter communication among different departments in the company is well established

as all departments work with inter dependency. There is quick flow of information

among different departments. This helps the company in maintaining good

relationship with customers.

There is a regular update system for sale force of the company, which make them

aware about the latest trends in the market.

Sale force of the company is getting good compensation from the company, which

increase the motivational level of the sales forces.

There are more male employees than female employees in the organization.

Del Monte brand is basically the brand of quality. Most the people who have used the

Del Monte products are saying that the quality of Del Monte product is very good

which will increase the business of the company in the near future.

In overall 75% of the super markets surveyed one or more than one product of Del

Monte was available. This is a good sign because in Bangalore Del Monte has started

its operation in April 2009.

There is no proper system with the help of which “Point of Purchase” material can be

utilized in a proper way.

There are some problems in the distribution system. There were some complaints

from the super markets that products are being delivered very late.

During this study it was observed that very less sampling of Del Monte brand has

been done so for in Bangalore.

SUGGESTIONS

Advertising is the most effective means of communication. In order to draw the

attention of the consumers, to build brand image and to increase product sales the

company should pay more attention towards its advertising strategy.

The company should look into the neat arrangement of the merchandises and indoor

hoardings to be more informative.

Word of mouth communication has a vast impact on people therefore provide good

quality product and services, therefore people will automatically promote the product.

If company want to increase the availability of the product in the market they have

give good margins to the sellers.

It was observed that in the market presently there are no good promotional offers

from the company which may be the reason why sales are very low. FieldFresh

should come up with good promotional offers to increase the customer base.

Sampling of the products should be done so that people will come to know about the

taste of the product.

There should be proper distribution system in place, because there were some

complaints of late delivery of products to Super Markets.

LEARNING EXPERIENCE

My overall experience in the company was very pleasant. I learned about management from

the practical perspective and I learnt about organization as to how it works in management

aspects and the policies and procedures. This has added value in my academic learning.

With the help of this study I came to know about the strategies which are being employed by

the companies to promote their product in the market.

To conclude this project has given me practical exposure in the study of organization. It was

a dream come true for me who always wanted to work in the industries which is my area of

interest and it was a great experience working where I learnt many things about the

functioning of an organization in accordance with the present market trends. It has given me

the opportunity to study the human behavior and also makes one ready to face different

situations, which normally would come across while on work in the office or factory

environment.