group 7_tci

8/8/2019 Group 7_TCI

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GROUP 7J OS E PH R OB E R TS HA M I L S A T HA R E

NI D H IN V C

S HY AM S UN DA R

A A K AN S HA A R O RA

TCI Packaging Division


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TCI Company Profile

Established in 1910

Cigarette Manufacturing and Marketing Organization

1.5 Billion Dollar Enterprise (Rs 3750 Crore approx)

Seven Main Businesses

Highest earner of foreign exchange in the Indianprivate sector(Rs 834 crore during 1992-93)


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Businesses of TCI

Tobacco and Cigarettes

Packaging and Printing

Hotels

Seeds and Edible oils

Paper and Board

Financial Services

International trading


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Packaging and Printing Division

Indias Largest Manufacturer of value added

folded cartons

Packaging of TCIs Cigarettes, other brands

of Liquor, Foods, Detergents, Personal

Products, and Matches.

New Computer-controlled Machinery


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Product Development Team


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Credits of PPD

Won three World Star Awards in a single year

Technical collaboration arrangement with BOX-Liquid Corporation, USA

Developed Wunder-Pac Bag-In-Box[BIB]

BIB is convenient to use, more hygienic, Tamperproof, and Cost effective.


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Production of Cashew Kernels

Cashew nuts are conditioned by sprinkling water and are

kept for 24-72 hours after which they are sun dried or

roasted.

The roasting can be done either by the drum roasting

method or the oil roasting method

Shelled manually with wooden hammers to separate kernels

from the nuts

Kernels are then dried and to prevent insect attack are put

through process borming Kernels are graded on number of counts per pound

To reduce the brittleness they are humidified


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Cashew Processing


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Cashew Exports from India

During 60s US and USSR were major importers

There are 2 major international markets

New York Market

London Market

For nine months ending September 1992 the exportsstood at 35.2 thousand tonnes

The price is affected by total production ofcashew nuts in the producing country.


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Major Competitors

y Brazil

y Mozambique

y Tanzania

y Kenya


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Advantage Brazil

Distance Factor

Low Price

Better Delivery

Use of Kovak Packaging

Successful implementation till now


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Problems in Bulk Packaging of Cashew Exports

Importing Countries pressuring to adopt

Alternative Packaging methods

Problems stated are

Lead Solder contamination

Disposability

Recyclability

Safety Aspects


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Features of Bulk packaging

Council for Cashew Exports and Promotion

Features put forward by the committee

Enough Strength to withstand the pressure of

Handling and Transport Containers Should be Leak-Proof

Shelf Life of the Cashews

Splits and Broken Percentage

Resistance to pest attacks in godowns Price of Bulk packs

Investments


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Response of Cashew Industry

Most feel they have to change over to new

types of packaging

Importers had formally expressed their

concern through CCPE

Exporters wanted more time

An Informal Association of tin container

manufactures responded aggressively


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Types Of Packaging

y Vita Pack System

y Kovak Packaging

y CAM companys Packaging

y TCIs Bag In Box(BOB) flexi packaging


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Vitapack System

Net weight of 11.34 kgs in tins of 1 kg

Two such packed tins are kept in a cardboard carton

Steel strapped for exports

Shipping specifications 490*240*350 mm3

Tins are kept in the filers and filled by jerk

movements

Vacuumized up to 26 inches Sealed with a tin lid and lead soldering


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TCIs Bag-in-Box Flexi packs

BIB technology

A flexi pack made of Aluminium foils and HDPE

A spout to protrude outside the box

A Flexi pack was developed for Bulk Packaging

Demonstrated to CCPE and to exporters

Tested a new pack by sending a full container load of

cashews to Japan through TCIs Agri-Business division Broken and splits component is 7 percent and new

pack is susceptible to rats


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Potential Markets

y USA

y East Europe

y West Europe

y African

y West Asia


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Cultural and Social factors in Potential

Markets

y Power Distance- Very low in United States ,High inAsian countries

y Individualism- collectivism- USA is very high on

individualism.y HNO :- USA and Japan are high HNO societies. This

results in pragmatic rules which most people obeyand respect.


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Economic statisticsPolitical environment

Social structureGeographic features

Growth trends for similar productsCultural acceptance of such products

Availability of market dataMarket Size

Stage of development

Taxes & Duties

Existing and potential competitionEase of entry

Reliability of informationSales projections

Cost of entryProbable product acceptance

Profit potentialFeel

Corporate factors influencing implementation

Filter1

Filter2

Filter4

Filter3


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Target Markets

y USA

y Eastern Europe

y Japan


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SWOT Analysis BIB Flexi Packs

y Strength

Environment Friendly

Moisture resistant & Tamper Proof

Convenient to use Successfully Tested

Cost effective

y Weakness

High percentage of broken and split component Less resistant to rat attacks


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y Opportunities

Currency Devaluation

Expansion of market

y Threats High competition

Arguments from tin container manufacturers


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Recommendations

y Expand business to countries like US ,Japan andEastern Europe(Triad)

y Home Country Pressure Groups- Comply thedemands of pressure groups for environmentalfriendly packaging solutions

y Develop cost effective and user friendly packagingsolution

y Reduce breakage rate

y Operate in neighboring countries of consumers afterstudying the business environment of thosecountries.


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Is the Cashew Packaging MarketAttractive Enough?

Based on the existing scenario its not

attractive due to the restrictions imposed by

the importers

Scope for the new players to come up with

new packaging

Cost is another factor

With increasing Cashew kernel exportsCashew Packaging market is growing too.


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Stakes of Different Stakeholdersin cashew packaging?

The Tin foil manufacturers

Cashew kernel exporters

Packaging companies

Logistics provider

Channel agents

Retail Chain


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What should be the marketingstrategy for our new pack?


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Product

BIB is a made from Aluminium and HDPE

Features of BIB - Convenient to use,

Hygienic, Tamper proof

Expected changes to be made in the

vitapack system to accommodate this new

pack were also minimal.


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Advantage of HDPE

Virtually maintenance

free

Impervious to insects

Will not crack or split

Does not contaminate

ground or soil

High abrasionresistance

Splinter free Does not containharmful chemicals Attractive

appearance


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Price

Lower cost than tin containers

Cost effective

HDPE is Durable and ReCycled Plastic

Minimal changes to be made from Vitapack

system


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Promotion

We have to get EIA( Export inspection

Agency) certification

We will show the Association of Cashew

Exporters and CCPE( Council for Cashew

Exports and Promotion) the Cost

advantages of this new pack.

Explain how it is addressing the Importers


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Place

Select the areas that are exporting cashew

kernels


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THANK YOU

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