mapros food pvt ltd final
TRANSCRIPT
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SECTOR SPECIFIC SUPPLY CHAIN
Trina Bhagat (09020242004)
Aikta Dube (09020242008)
Meghraj Gawande (09020242009)
Kamlesh Kunhara (09020242016)
Saurabh Walke (09020242034)
Sagar Shinde (09020242038)
Vipra Khandelwal (09020242046)
Jyoti Jadhav (09020242051)
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The Food and Beverage Industry
• Large number of products like: alcohol, beverages, bread & biscuits etc are included under the category of Food & Beverages
• This industry consists of high level of market segment, huge variety of products, huge number of companies and many other characteristics
• It represents a diverse set of products and processes: fresh, frozen, chilled, and long shelf-life food and beverage products
• They are manufactured, distributed, imported, and marketed to consumers, retailers, catering services, and other manufacturers
• The manufacture & export of food & beverage has been constantly increasing since past few years
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• The food processing industry is one of the largest industries.
• It is ranked fifth in terms of production, consumption, export and expected growth.
• The industry size has been estimated at US$ 70 billion by the Ministry of Food Processing, Government of India.
• 6.3 per cent to India’s GDP in 2003 and had a share of 6 percent in total industrial production.
• The industry employs 1.6 million workers directly.
Indian Scenario
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• Indian food, beverages and tobacco market will grow at a CAGR of around 7.5% during 2009-2013 to around US$ 330 Billion by 2013.
• All the segments registered uptrend in terms of consumption and sales between 2005 and 2009, but the alcoholic segment outperformed other segments.
Growth
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India's competitive Advantage in Food Processing Sector
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Role of F&B sector
• Expands economic opportunity.
• Operates at multi level of the society
• International Firms can build opportunity around F & B value chains.
• Provide income to workers.
• Transform life of billions of workers
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• Low level of processing –– 2% in the case of fruits and vegetables– 14%in milk– 4% in fisheries– 1% in meat and poultry products
• India’s share in world’s processed food production-1%
• Value addition 20%
Some Observations On The Current Supply Chain Scenario
Source: MOFPI, Govt. of India
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• India’s share in global agricultural export is 1.6% of $520 billion
• Exports have stagnated during the last five years
• Unorganized marketing and distribution of food items– 72% of food consumption in the world is through organised set up
whereas it is 1% in India– Fragmented retailing results in high cost due to inefficiency ,wastage
• Estimated wastage fruits & vegetables in India-35%
• The Unorganized, small players account for more than 70 per cent of the industry output in volume terms and 50 per cent in value terms.
Contd…
Source: MOFPI, Govt. of India
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Supply Chain in Food & Beverage>> Weak Link
• Production sector unorganised.
• Bulk of production in small & marginal holdings.
• Producers getting only 30 % of produce value.
• Trade intermediaries getting rest 70 % without any value addition.
• Supply line unreliable.
• Lack of infrastructure at the production sites.
• Producers not linked to the processors.
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Contd…
• No linkage between production of agricultural produce and its demand in the market
• Poor on-farm practices in harvest and post-harvest handling
• Poor infrastructure in terms of transportation, storage and market
• Difficulty in collection from numerous small farms
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Contd…
• Negligent attitude towards post-harvest losses
• Lack of quality consciousness
• Absence of food processing units
• Faulty power supply
• Unavailability of modern cold storage
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Meeting demand for sustainable products
• Promote sustainable agricultural practices by providing agricultural education
• Back ward and Forward linkages.
• Establishment of marketing network.
• Establishment of cold chain, low cost pre-cooling facilities near farms, cold stores and grading, sorting, packing facilities to reduce wastage, improve quality and shelf life of products
Source: MOFPI, Govt. of India
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13 Source: MOFPI, Govt. of India
Contd…
• Design innovative system of manual distribution centers
• Building distribution networks and micro enterprises
• Financing mainly through loans.
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Fruits & Vegetables Processing Processing Pattern - Global Country % Processed*
Malaysia 83
South Africa 80
Philippines 78
Thailand 72
Brazil 70
USA 65
India 2 - 3
* percentage processed out of total production of fruits & vegetables
14Source: MOFPI, Govt. of India
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Segmentation of different sectors in food processing industry
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1604/11/2023 16
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Dairy Sector
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• most of the processing is done by the unorganized sector.• the share of organized sector is less than 15 per cent.
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Fruit & Vegetable Sector
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• Fruit and vegetable processing in India is almost equally divided between the organized and unorganized sectors.
• organized sector : products like juices and pulp concentrate• The unorganized : processed items like pickles, sauces and squashes
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Meat and Poultry Sector
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• India is the third largest fish producer in the world• The fisheries sector contributes US$ 4.4 billion to the national income,
which is about 1.4 per cent of the total GDP
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• Aerated soft drinks• Alcoholic drinks• Packaged drinking water
Beverages Sector
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• Social forces• Cultural impact• Demography.
• Telephone, internet, IT software, Bluetooth, photo copier etc
• National and global interest rate and fiscal policy
• suppliers and creditors behaviour.
• Response of the competitors to the changes in the global scenario.
• Legislation • Market regulations• Trade agreements• Tax• Type of government
regime e.g. communist, democratic, dictatorship
Political Economical
SocialTechnological
PEST Analysis
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PEST ANALYSIS OF INDIAN FOOD & BEVERAGE INDUSTRY
POLITICAL
Vision 2015 of Govt of India is to raise agro/food processing from 6% to 20%, value addition from 20% to 35% and the global trade from 1.5% to 3 % .
Twenty mega parks in various cities to attract Foreign Direct Investment (FDI) in the food-processing sector
Concessional rate of 5% custom duty on tea and coffee plantation machinery.
Tax exemption in sales and excise duty for small scale industries.
Transportation and infrastructure development in rural areas helps in distribution network.
ECONOMICAL
Size of food market in India - Rs. 8,60,000
Crores
Primarily processed food market – Rs.
2,80,000 crore
Value added processed food market – Rs.
1,80,000 crore
Investment during the 10th plan is
estimated at Rs. 62,105 Crores
Industry growth rate during the last five
years is estimated at 7.14% against GDP of
6.2%
Investment required during next ten years
– Rs. 1,10,000 crore
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2000 2001 2002 2003 2004 2005 2006 2007 2008
5.4
3.9
4.5
6.9
7.9
9
9.7
8.98.4
Contribution of Food and Beverage IndustryGDP rate
Source: MOFPI, Govt. of India26
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2003 2006 2007 20150
5
10
15
20
25
30
35
40
India's FMCG Market Size (In USD Billion)
Source: Naukri Hub, IBEF, Chennai Online27
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Contd..
SOCIAL
People are switching to healthier foods and beverages
The need for convenient packaging increasing
Healthier beverages are preferred over alcoholic beverages
Market for ready-to-eat food is increasing in National & International market.
TECHNOLOGICAL
Technology has been simplified and available in the industry.
Foreign players are helping in high technological development.
Introduction of cans and plastic bottles have increased the sales as these are easier to carry and you can bin them once they are used.
Introduction of new machineries all the time
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Future Opportunities
• According to the Confederation of Indian Industry (CII) the food- sector has the potential of attracting US$ 33 billion of investment in 10 years and generate employment of 9 million person-days.
• Exploitation of the huge untapped.
• Opportunities presented by contract farming, captive supplies of raw materials, disintermediation and direct access to farmers, availability of new and improved seeds and farm technology.
Source: MOFPI, Govt. of India
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Located around the idyllic hill-town of Panchgani in Western India. With an annual processing capacity of around 30 thousand MT, Mapro is a market leader in Western India. The company has grown organically over the last five decades with sustained
profitability. Known for its quality and innovation, Mapro has been built on its founder’s
philosophy of developing products that are wholesome, nutritious, value-for-money, and imaginative.
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50 Fruitful Years
• Founded in 1959.
• Founder: Kishore Vora a pharmacist by profession.
• Today, his ‘hobby’ has borne fruit in the shape of Mapro, one of the most modern, hygienic, quality-focussed fruit product manufacturing units in India.
• His vision has been taken forward, thereby transforming the region around Mahabaleshwar and Panchgani, the erstwhile sleepy hill stations of Maharashtra, into a flourishing fruit processing zone.
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VISION\MISSION
• Mapro will develop, produce, package & sell food products, with high regards for safety, nutrition & taste, which we can confidently give to our customers by implementing and continually improving Quality Management system & food safety management system to meet & exceed customers expectations.
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About Mapro
• Mapro is the first company to introduce pectin jellies and fruit sweets in India.
• There are 500 local employees. There are 100 contract labourers employed as well.
• Mapro has been growing consistently at the rate of 25-30 per cent in the past few years.
• The company earns a profit of about 40-50% profit in an average.
• The Company has expanded capacity to produce 30000 MT of processed frozen foods.
• Estimated Annual Sales (USD): US$5 Million - US$10 Million.
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Beyond business
• Flat organization structure.
• Common canteen for one and all.
• Employees are recognized and felicitated.
• Socio-economic upliftment.
• The development of the village of Gureghar, comprising around 70 families, between 1971 and 1985
• 100% employment
• 100% literacy
• 0% dropout rate
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Product Portfolio
• Taste
• Quality
• Natural Goodness
• Nutritive Value
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Jam
• Mango Jam
• Mix Fruit Jam
• Orange Marmalade
• Pineapple Jam
• Strawberry Jam
• Whole Strawberry
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Falero• The ‘Falero’ pulpy
fruit chews, which are better known as ‘pates de Fruit’ in the rest of the world – are excellent exemplars of Mapro’s very own Innovation Labs.
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Location
• Shendurjane
• Indora
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Quality
• With its state-of-the-art production facilities, Mapro is committed to developing, producing, packaging, storing and selling food products, with high regard for safety, nutrition and taste, by continually improving quality and food safety management systems to meet and exceed customers’ expectations
• The company has obtained ISO 9001:2000 certification and HACCP Certification from BVQi.
• ISO 22000 Certification is currently under implementation and the implementation of B. R. C. Standards is being planned in the near future.
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Quality maintenance
• In all stages i,.e.
• Developing
• Producing
• Packaging
• Storing
• Selling food products
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Bureau Of Indian Standards
• BIS has adopted this International Standard as IS/ISO 22000:200-’FOOD SAFETY MANAGEMENT SYSTEMS CERTIFICATION SCHEME’.
• Highlights: Emphasis on preventions of food safety hazards of all types. Ensures compliance with legislative and regulatory
requirements. Provides for management of potential emergency situations &
accidents that can impact food safety.
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Codex Alimentarius Commission
• The Codex Alimentarius (also known as the CODEX) is a collection of internationally adopted food standards presented in a uniform manner and aimed at protecting consumers' health and ensuring fair practices in the food trade.
• The Codex Alimentarius includes standards for all the principle foods, whether processed or raw, for distribution to the consume
• Codex standards usually relate to product characteristics and may deal with all government-regulated characteristics appropriate to the commodity, or only one characteristic.
• Maximum residue limits (MRLs) for residues of pesticides or veterinary drugs in foods are examples of standards dealing with only one characteristic.
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Agricultural Produce (Grading and Marketing) Act, 1937 (Agmark)
• Under this Act Grade standards are prescribed for agricultural and allied commodities.
• These are known as Agmark' standards.
• Grading under the provisions of this Act is voluntary.
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HAZARD ANALYSIS CRITICAL CONTROL POINT (HACCP)
• Hazard Analysis and Critical Control Point (HACCP) is a process control system designed to identify and prevent microbial and other hazards in food production
• It includes steps designed to prevent problems before they occur and to correct deviations as soon as they are detected.
• Reduces direct costs by substantially reducing the need to destroy finished product for food safety reasons.
• Enhanced marketability of products, especially in light of increasing concerns for food safety by domestic and international customers and consumers,
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ISO-9000
• Implementation of the ISO standards enables export enterprises in developing countries to offer products or services that meet well-defined needs, satisfy consumer expectations, comply with applicable standards and specifications, as well as conform to requirements in regard to health & safety, protection of the environment and conservation of energy and materials: all these at lower costs and higher levels of efficiency.
• ISO 9000 series of standards are generic standards and are applicable equally both to manufacturing as well as to service industries.
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Mapro Food Park
• In Panchgani: to cater to growing demand
• The food park is capable of processing over 30 tonnes jams and pack over 30,000 jam bottles of 200gm, 500gm and 1kg per day.
• Currently, their aim is to process strawberry, papaya, orange, sweet lime, kiwi, mango, pineapple and raspberry. (Source: Mr. Anis Siddiqui, manager – factory, Mapro Foods
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Contd…
• To achieve food safety and quality assurance at all level, Mapro has created three departments
a) microbiological analysis,
b) R&D analysis
c) physical & chemical analysis.
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Visit Details
Date: 6 January 2010.
Time: 12:30 pm to 4 pm
Place: Shendurjane, Tal: Wai, Dist: Satara
Person contacted: Mr. Mustaq Shaikh
(Head, Supply Chain Dept , Mapro Foods Pvt .Ltd)
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Organization StructureDirector
( Mr Mayur Vohra)
Marketing Head
Head Sales
Area Sales Manager
Sales People
HR HeadSCM Head(Mushtaq
Shaikh)
Financial Head
Manufacturing Head
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Supply Chain
Planning
Procurement
Manufacturing
Packaging &Warehouse
Distribution
Logistics
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Forecasting
SalesRaw material
ProductionInventory
New Products
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Forecasting
• Production plan is prepared for a quarter
• Sales team gives sales plan from previous sales data.
• Plan of 3 months is divided into weeks.
• Maintains daily data for proper evaluation.
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Procurement
Sugar Fruits
Basic Raw Material
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Sugar Contract
Suppliers(Agents)
Tender-Quotation
Sorting of Supplier
Final Contract
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Fruit
Directly from Market Directly from Farmers
Directly from Societies No Contract farming
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Example of Strawberry Procurement
• Every year 1000-2000 tons is required.
• Price at which procured is around Rs.30 to Rs.50 per Kg.
• Market is Panchgani.• Stock for 9-10 months is
kept in cold storage.
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Other fruits
• Nagpur (Maharashtra)
• Muzzaffarpur (Bihar)
• Ratnagiri (Maharashtra)
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Raw MaterialCategory Items
Fresh Fruit/ Partially Processed
Mango Litchi
RaspberryKokum
StrawberryPeach
PapayaApricot
GrapeLime Juice
PineappleOrange
Commodity
Sugar Glucose
Food Additives
Pectin Citric Acid
Preservatives
Starch Sodium Citrate
Packing Materials
Glass Bottles
PET Bottles
PVC Packs
Labels Caps
Bags Cartons
Spices Cardamom
Cashew Nut
Fennel Khus Seeds
White Pepper
Maggateri Seeds
Others Honey Dry Fruits
Kesar Spices Drops
Fruit Flavours
Bags
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Preservation Process
• Deep Frozen Technique
• Aseptic Technique
• Sodium Meta Sulphide
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Manufacturing
• Manufacturing plant at Shendurjane, Wai
• It consists of various divisions for various products.
• They have their own Boiler unit which works on electricity and Baggase.
• For proper quality, trained work force is present.
• Separate Quality lab is present inside unit.
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Steps in Manufacturing
Inspection
Cleaning & Crushing
Pasteurizing
Process
Filling jar, Labelling
Storage
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Packaging
Items Variants
Glass Bottles
200gm 250gm 300gm 400gm 500 gm 1000gm
PET Bottles
200ml 350ml 500ml 700ml 1000 ml 6kg Jar
Outer Cartons
2 PLY 3 PLY 5 PLY
Inner Cartons (PVC)
50gm 100gm 200gm 500gm
Caps 28mm 53mm 63mm 73mm Crown Cork
Screw on Cork
Others Wrapping Paper
Shrink Rolls
Plastic Bags
Labels Gum/ Cpesello T
Cans
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Warehousing
Single warehouse capacity is 50,000 sq feetNo. of warehouse:21 under construction.
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Cold storages
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Distribution
Distributor• Retailer• Customer
Superstockist• Distributor• Retailer• Customer
Company• Modern
Retailers• Customer
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Logistics
• Inbound Logistics:
1) Sugar @ Middle man’s expenses.
2) Fruits @ Company’s expenses.
3) Packaging Material @ Company’s expenses.
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Contd..
• Outbound Logistics:
– From warehouse to distributor or Superstockist @
company’s expensenses.
– Company owned vehicles for outbound logistics.
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Assessment
• Periodical review of Suppliers performance.
• Distributors and Retailers performance appraisal through sales team.
• Customer satisfaction surveys and Customer helpline.
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Use of IT
• Use of Tally for evaluation of various operations.
• Internal communication within workforce by e-mails.
• Bar coding.
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Tools for better Operations
• Integration of outbound & reverse logistics.
• Waste Management.
• Electricity generation from Baggase.
• Recycling of water for orchards.
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MAJOR FINDINGS
• No Contract Farming.
• Should use ERP now.
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Conversion Ratio
• Strawberry- 70%
• Mango- 50%
• Guava- 70%
• Orange- 40%
• Custard Apple- 20-25%
• Kiwi- 60-75%
• All product costing is online
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Manufacturing cycle
• Strawberry pulp is a semi finished product
• So strawberry products are completed in 24 hrs
• For ripe products 24 hrs cycle
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Distribution Cost
• 8% to distributor
• 15% to super stockist
• Retail margins 15-25%
• Advertisements- 1-2%
• Schemes vary from season to season
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Role of SCM for new products
• Sales forecast- Last year sales + growth in each product
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Future opportunities
• Falero- production- presently- 8 tonnes
• Targeting for 20 tonnes
• Next year Mapro is supposed to become a 100 Cr company
• To achieve this target the contributions would be as follows:
• Falero - 70%
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Mapro garden
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Contd…
• With growing demand for fruit-based products – Mapro Foods has decided to augment their fruit processing capacity at Mapro Food Park, Panchgani.
• The food park has a capacity to process over 60,000 litres of SCS (squash crush and sharbat) range and process over 2 lakh litres ready-to-serve beverages everyday.
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Contd..
• “The food park is capable of processing over 30 tonnes jams and pack over 30,000 jam bottles of 200gm, 500gm and 1kg per day. Currently, they aim to process papaya, orange, sweet lime, kiwi, mango, pineapple and raspberry,”
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Visit to Mapro garden
• 10-12 lakhs footfall in Mapro garden
• Peak season 10,000-12,000 footfall everyday
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Marketing
• Press Release.
• Mapro Garden.
• 1% to 2 % of total revenue is spent on promotion.
• Promotion concentrated in Western Maharashtra only.
• Various Schemes for Distributors.
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Future
• The company is going to open its manufacturing units in Delhi and Pathankot lately.
• It is also concentrating in expanding its market to the other cities like Kanpur, Lucknow and in Punjab.
• It is setting up a Frozen and Fresh Food Distribution Chain in Indian Metros to service the fast growing modern Organised Retail Supermarkets being set up in India
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In year 2011
• Projected to be 100 crore company.
• Out of this
10% Syrups
20% Crushes
7 % Jam
63% Falero & others
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Contd…
• Falero- production- presently- 8 tonnes
• Targeting for 20 tonnes
• Falero - 70%
• New product launched on 7th Jan 2011 is F20 (Ready to drink)
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Contd…
• Crushes- 15-20%
• Syrups- 10%
• Jams- 5-7%
• Excise on syrups- 4%
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SWOT Analysis
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STRENGTH
• Increase in Customers loyalty.
• Increase in Profits.
• Image created in particular region will be carried forward at national level.
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WEAKNESS• No visibility in new market.
• Have to design new Marketing, supply chain design in new areas.
• Problem in Investments.
• Financial problem.
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OPPURTUNITIES
• To explore new market.
• To target new customers.
• To create new products.
• Expansion of Brand image.
• Enter in export business.
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THREATS
• Well established national brands are bigger competitors.
• Regional brands are other competitors.
• If failed as national brand then loss of huge investment.
• If failed, it will create negative effect on regional customers and this will hamper the regional profits also.
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Acknowledgement
Mr Mayur Vohra Mr Mustaq Shaikh
Mr. Satish Rajdeep