PART-A

Corporate profile

UNIBIC India was incorporated in August 2004 to produce world class biscuits in a niche,

unique and premium segment.

UNIBIC Australia is a niche player in the Australian biscuit market and has been in business for

over 40 years. UNIBIC Australia markets under a licensing arrangement with RSL (Returned

Service Men League). Brands like ANZAC have iconic status as well as significant equity and

historical association in Australia and New Zealand.

UNIBIC Australia has a range of over 40 products including specialty Australian and European

cookies, centre filled products and niche products like Weight Watchers (under a joint venture

agreement with Weight Watchers of USA).

UNIBIC in Australia does things which are different from the main line manufacturers and does

not compete on price. Its reason for being is to produce niche, unique and premium products. It

also works under licensing arrangements in order to leverage existing brand equity.

UNIBIC India has its factory and infrastructure in Bangalore with state of the art machines from

Italy. It is the first biscuit company to have put up a “wire cutting” technology which provides superior quality products and is the only method available to make real cookie. This has been

done to create quality products as well as to build in a structural competitive advantage. The

Company has also installed equipment and packaging machinery for exports, which are both

captive as well as strategic partners, will require world approved standards.

HACCP (Hazard Analysis and Critical Control Point) certification has been done and recently

they have obtained BRC (British Retailers Consortium) certification.

The Company has a threefold strategy to provide World class product at affordable

prices to keep our customers delighted.

1. To manufacture and market the best quality products in the Indian consumer market with

emphasis on major towns and organized trade. The company has launched Chocolate Chip

cookies (Bradman), Oatmeal Cookies (ANZAC), Butter, Butter Cashew, Choconut and Jamz

Cookies. The company has focused on its distribution and sales effort Pan India across Modern

Retail, Traditional Trade and Institution. We are present in more than 1,00,000 outlets and have

extensive coverage across all channels all over India. Unibic proposes to launch speciality health

products (Sugar free) and milk cookies.

2. To build strategic alliances by building specialized products with competitive advantages.

Unibic India has entered into an exclusive agreement with Café Coffee Day to produce coffee

accompaniment cookies. The company is also considering such offers from other Branded Chain

stores.

3. Exports: Exports are a major plan for the Company. UNIBIC India has relationships in major

markets particularly Australia, New Zealand, UK and US. They are already marketing their

products in those countries through their super market chains. This has provided an excellent

platform for UNIBIC India to get market access for a range of products to be produced from

India. These include assortment packs as well as potion packs. UNIBIC India is also exporting to

Middle East and South East Asia. UNIBIC India has an complete range of gifting packs which

will be packed in tins for festivals such as Diwali, Christmas etc. People are looking for

affordable good quality, healthy and long shelf life products. The Company intends using

celebration packs to promote the corporate gift segment in Industries like Pharmaceuticals and

those who gift both to their employees and business associate.

Cookies and biscuit

Most people confuse cookies with biscuits. The truth is when it comes to Cookies and biscuits,

there really isn‟t much to compare. Cookies are softer and tastier than traditional biscuits.

Cookies use wire cut technology that allow them to have a soft and chewy texture. Biscuits on

the other hand, due the high compression of the dough piece in between the rubber roller and the

die roll cavity, give a denser texture. When it comes to chocolate chips and fruit ingredients,

cookies allows the inclusions to embed themselves in the midst of the rich dough, to give

fantastic flavor and taste. Biscuits on the other hand, run a risk of burning the inclusions while

baking, which is why most ingredients end up on the bottom of the biscuit. No matter how you

look at it nothing comes close to enjoying a perfect cookie.

Unibic and society

Australian and New Zealand soldiers during World War 1 displayed courage &

determination which earned them the highest respect. A spirit existed which bound them,

built around the desire to look after each other. This became known as the Anzac spirit.

Meanwhile at homes, mothers and wife‟s of the soldiers were busy making cookies to send to

the war front to raise the morale of their men.

The Anzac Cookies- as they became known proved very popular among the soldiers as well as at

home where they were sold to raise money for the Red Cross in support of the war veterans.

These cookies became an institution and in conjunction with Unibic are sold in Australia, NZ ,

UK and USA. So Unibic are proud to bring Australia‟s favorite cookies to India in support of

India‟s Jawans.

Each time you buy a packet of Unibic ANZAC cookies, money is being raised to provide

support to India’s war widows, as well as the Indian JAWANS who risk their lives for us every day. UNIBIC donates 3% of sales for the support of Indian veterans.

Industry Profile

Unibic Biscuits India, in which Unibic Australia has a majority stake, is not quite averse to

another takeover deal after an earlier bid by Marico was aborted because of valuation issues.

FOCUS ON NICHE SEGMENT

The takeover would have accelerated Unibic's growth trajectory, but for now the company does

not want to be „distracted by the takeover experience'. Instead, it wants to focus on building the brand in a niche segment that is high on both the price and wellness factors.

“There is a vacant space here as there are no Indian players in this slot,” Mr Nikhil Sen, Unibic's Managing Director told Business Line. The company was launched in 2004 and has brands such

as Chocolate Chip cookies (Bradman), Oatmeal Cookies (Anzac), Butter, Butter Cashew,

Choconut and Jamz Cookies.

Unibic Australia holds about 65 per cent stake in the Indian company and the rest is held by Mr

Sen and private equity investors. Marico's takeover attempt was to acquire an estimated 51 per

cent stake in Unibic.

The company is also considering a foray into other segments such as breakfast offerings on the

„health' platform. Having strengthened the brand in the southern and western regions, the company will now focus on the northern and eastern markets.

Mr Sen, “We'll never be a rural brand, and plan to be a national brand in 12-18 months and be

present in 21 markets across the country.” In June 2012

Early this year, Unibic launched its sugar-free range of cookies and is now ready to bring out a

range of sugar-free cream biscuits for diabetics.

COOKIE-DRIVEN

Retail sales of the Unibic brand of cookies make up about 80 per cent of the company's revenues.

About 10 per cent of the revenues come from manufacturing cookies for the HORECA (hotels,

restaurants and catering) segment and for Food Bazaar ( under the brand Tasty Treat) and the rest

is from exports.

DETAILS OF COMPANY

1 Location 51/1A, Heggadadevanapua Village, Huskur Road, Bangalore –

562 123.

2 Telephone no. +91 -80-23712008

3 Employees 180

4 Certificates HACCP (Hazard Analysis and Critical Control Point) & BRC

(British Retailers Consortium) certification.

5 Franchise Entire industry is set up in Bangalore only.

INFRASTRUCTURAL FACILITIES

Unibic India Pvt Ltd has its corporate office at # 1134, “Shreram Nivas”, 5th Floor, 100 Feet Road, H.A.L. 2nd Stage, Indiranagar, Bangalore – 560 038.

Its manufacturing unit is located at 51/1A, Heggadadevanapua Village, Huskur Road, Bangalore.

The manufacturing plant is made of different divisions viz.,

Mixing division

Oven

Quality

Cold storage

warehousing

Packaging Section

Canteen.

Mckinsey’s 7S frame work

1. STRATEGY:

The following are the strategies adopted by Unibic in accordance with the company principles:

Launch all products under Unibic master brand

Operate only in value added Foods market.

Set up industry standards for Hygiene and food safety.

Operate only in categories in a niche market.

2. STYLE:

Style is one of the seven levers which top managers can use to bring about Company change.

The style of the company becomes evident through the patterns of actions taken by member of

top management team over a period of time.

The Company is following the participative and social type of leadership in which all the level of

managers interact with each other for achievement towards the goals and report to each other for

achievement towards the goals and report to the higher officials. Managers work together as

team to solve today‟s and tomorrow‟s problems in a significant manner.

The Organizations style of management can be described as to be participative in nature.

The reasons to support this are as follows:

Whenever important decision are to be made, the whole staff is allowed to participate in

the decision making where by suggestions are sought and if found appropriate are

accepted and implemented.

Top management communications with each and every one in the most modest way

being casuals at certain times.

The response from the entire staff is also the same, when everyone gets to know and

every happening then and there and this proves to be good relation with the top

management.

The top management always encourages changes in the Organization provided they

happen to be always ready to cope with different situation.

Each and every person is involved in the success of the Company and not just key person,

as Unibic Biscuits acclaims the efforts of the entire staff.

3. STRUCTURE:

Sub structure detailing with each functional discipline

Detailed study of various departments & their functions:

PRODUCTION DEPARTMENT

Production and Operations

The manufacturing process involves various subsidiary operations like the processing of raw

materials, mixing, cooling and packaging. This process is carried out under the strict supervision

of Production head.

Procurement of Raw Material

The quality control starts from the purchase of quality raw materials. These raw materials are

directly purchased from the growers and original manufacturers. The packing materials and other

requirements are dealt directly with manufacturers to maintain the standard of quality and to

curtail the overhead costs.

Functions of Production Department

To produce required quantity of products as per the order placed.

To ensure that there is orderly flow of materials during the process of manufacturing.

Scheduling and machine loading to ensure coordinated manufacturing and completion as

per production plan.

Before the purchase of required material the production department should inform the

stores manager.

The production manager should ensure that break down in any particular Machine should

not affect the whole process of production.

MARKETING DEPARTMENT

Concept of Marketing

Marketing is more than a company department; it is an orderly and insightful process for

thinking about and planning for markets.

Marketing department functions with the coordination of other departments namely production,

finance and research and development. A marketer can rarely satisfy everyone in the market

therefore before marketing his products he has to start with market segmentation.

Salient Features of Marketing

It is a creative function

It promotes trade and employment wants

There is an emphasis on what consumer wants

The aim of marketing is to make selling superfluous

There is an emphasis on what consumer wants

A Simple Marketing System

Communication

Goods / Services

Money

Information

Modern economics abound in markets. Sellers and buyers are connected by four flows. The

sellers send goods and services and communication to market in return they receive money and

information. The inner loop shows an exchange of money for goods and services the outer loop

shows an exchange of information

ADVERTISEMENT DEPARTMENT: This unit is mainly focused on the activity of

advertisements through media TV channels, pamphlets etc.

PERSONNEL DEPARTMENT

Responsibilities:

To add in recruitment and selection of men for the appropriate job.

To discuss and decide upon the grades of employee and to fix their wages.

To have discussions with the unions of the company in and out of the court.

To receive quarterly /monthly report from the departmental heads regarding performance

working under them.

To finalise holidays after discussions with the unions.

DISPATCH DEPARTMENT

Dispatch department comes under marketing department and consists of one supervisor whose

function is as under:

As per order, job card is prepared and then the production process is carried out is carried out

and the product is ready. They are checked by the quality control and packed in the cartoon,

which contains all details and then printed on the box of each.

All these are then packed in a master cartoon and sealed with appropriate addresses.

All consignments are transported to their main office and from there are distributed to main

cities in India and abroad.

Transport of products is through road and courier.

FINANCE DEPARTMENT

There exits an inseparable relationship between finance on the one hand and production,

marketing and other. Almost all kinds of business activities, directly or indirectly involve the use

of funds.

FUNCTIONS:

They look after the overall financial requirement of the company.

They see that a proper inflow and outflow of income and expenditure is maintained.