Cad Bury Finance

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A PROJECT REPORT

ON

“MATERIAL COST

CONTROL”

At

For the partial fulfillment of the award of

Bachelor of Business Administration

(2007-2010)

Submitted To Submitted by

JIWAJI UNIVERSITY GWALIOR SWATI JAIN

BBA-V Sem.

PRESTIGE INSTITUTE OF MANAGEMENT, GWALIOR

Airport Road, Near Deen Dayal Nagar, Gwalior-474020

Email: [email protected]; Website: www.prestigegwl.org

http://images.google.co.in/imgres?imgurl=http://www.prestigegwl.org/use/logo.jpg&imgrefurl=http://www.prestigegwl.org/main/director.htm&usg=__GflNHZm6rdTcW7f9tS871hSPCGE=&h=110&w=115&sz=7&hl=en&start=3&um=1&tbnid=UBAsDOupzbxbCM:&tbnh=83&tbnw=87&prev=/images?q=PRESTIGE+GWALIOR&hl=en&lr=&rlz=1G1GGLQ_ENIN346&sa=N&um=1



DECLARATION

I VAISHALI SABLE, student of BBA V Semester of Prestige Institute of

Management, Gwalior, hereby declare that the project is my original piece of work

and not the copy of any such work undertaken by someone else, all the

information , facts and figures presented in the report are first hand in nature. They

are actually based on my intense efforts conducted in CADBURY INDIA LTD . I

have completed this project under the guidance of Prof. AMITHAB

MAHESHWARI ( Faculty PIMG)

Date: VAISHALI SABLE

BBA –V Sem



CERTIFICATE

This is to certify that Miss VAISHALI SABLE Student of BBA Vth Semester

programme has completed her summer training of 4 weeks and prepared this report

of “ TRAINING & DEVELOPMENT” under my guidance .

Date: Prof. AMITHAB MAHESHWARI

(Faculty Guide)



ACKNOWLEDGEMENT

The present work is dedicated to the persons who not only taught me, but continue

inspire me in knowing the clandestine facts of workmanship. I bow in honor before

these great teachers. The accomplishment of the present study became possible by

the invaluable assistance and guidance of my professional guides to whom I may

gratefully indebted. Firstly I would like to express my sincere gratitude to my

faculty guide Prof. AMITHAB MAHESHWARI without whose invaluable

guidance, moral support and encouragement my work would have ever assumed the

present shape, research. I were indebted to my parents and friends for their moralsupport and possible efforts they made for me.

Date: VAISHALI SABLE

BBA –V Sem



INDEX

• History of the Organisation & Objective

• Organisational Structure

• Financial Performance

• Material Cost Control

• Production & Operations

• Marketing

•Strength & Weakness of the Organisation.

• Suggestion

• Special Point

• Names of the CEO/MD/Department Head

Chapter -1

• Introduction

Chapter –II

• Objective of The Study

Chapter –III

• Result & Discussion

Chapter – IV

• Suggestion

Chapter –V



• Conclusion



HISTORY OF THE ORGANISATION AND OBJECTIVE

CADBURY INDIA

Cadbury began its operations in 1948 by importing chocolates and

then re-packing them before distribution in the Indian market. After 59

years of existence, it today has five compay-owned manufacturing

facilities at Thane, Induri (Pune) and Malanpur (Gwalior) , Bangalore

and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi,

Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.

Our core purpose “Working together to create brands people love”

captures the spirit of what we are ttrying to achieve as a business. We

collaborate and work as teams to convert products into brands.

Simply put, we spread happiness! Currently Cadbury India operates in

three sectors viz. Chocolate Confectionery, milk food Drinks and in

the Candy category.In the Chocolate Confectionery business, Cadbury has maintained its

undisputed leadership over the years. Some of the key brands are

Cadbury Dairy Milk, 5 Star, Perk, Eclairs and Celebrations. Cadbury

enjoys a value market share of over 70% the highest Cadbury brand

share in the world! Our flagship brand Cadbury Dairy Milk is

considered the “gold standard” for chocolates in India. The pure taste

of CDM defines the chocolate taste for the Indian consumer.

In the Milk food drinks segment our main product is Bournvita – the

leading Malted Food Drink (MFD) in the country. Similarly in the

medicated candy category Halls is the undisputed leader. We recently

entered the gums category with the launch of our worldwide dominant

bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries

worldwide. The Cadbury India Brand Strategy has received consistentsupport through simple but imaginative extensions to product



categories and distribution. A good example of this is the development

of Bytes. Crispy wafers filled with coca cream in the form of a bagged

snack, Bytes is positioned as “The new concept of sweet snacking”. It

delivers the taste of chocolate in the form of a light snack, and thusheralds the entry of Cadbury India into the growing bagged Snack

Market, which has been dominated until now by Salted Bagged Snack

Brands. Bytes was first launched in South India in 2003.

MALANPUR FACTORY

In 1989 the company stated manufacturing operations from its third

and newest factory at Malanpur near Gwalior in M.P.

Using the most modern state of the art technology, the unit today

manufactures range of liqud milk chocolate and a variety of enrobed

chocolate products.

Factory in 8 phases

1988-89 - Eclairs & Gems

1994-95 - 5 Star 1997 - Perk

2001 - Chocolate expansion

2005 - Fruity Gems

2006 - Ulta Perk

2008 - Short

2009 - Éclair Sticks



ORGANISATION STRUCTURE

Chairman

C Y PalChairman - Non Executive

Managing Director

Anand KripaluManaging Director

Non-Executive Directors

Harsh MariwalaRadhakrishnan B. MenonSuresh Talwar

Executive Directors

Atul BhatiaExecutive Director -Science & Technology

Rajesh GargExecutive Director -Finance & Commercial

Jaiboy PhillipsExecutive Director - Supply Chain

Sanjay PurohitExecutie Director - Marketing



Sunil SethiExecutive Director -Sales & Customer Development

V ChandramouliExecutive Director -HR & Strategy

Senior Management

Ashish Pisharodi Rajesh Ramanathan

Vice President - Modern TradeVice President - People &Talent

Shivanand Sanadi Dr. Shantanu SamantVice President - Legal Affairs

Vice President -Science & Technology

Vivek Sarbhai Dharmesh JoshiVice President - Logistics &Customer Operations

Vice President -Manufacturing Development

Sherezad Irani Sanjay KurupVP - Procurement VP - Manufacturing (Baddi)

Monaz NobleCompany Secretary



FINANCIAL PERFORMANCE

Finance holds the key to all human activity . Finance department of

malanpur factory is also working in the same direction and with the

same objective but it has some limitation because morst of the

importance finance related matter are directly dealt and finalized by the

central finance department in the Mumbai head office.

Factory finance department always endeavors of maximizing the profit

of high company through two possible ways :

1. Reduction in cost

2. Increase in Sales

FINANCIAL FUNCTIONS

1. Preparing variance report

a) Material user variance report

b) Packaging material user variance report

2. Production report

3. Excise related matter

4. Export related matter

5. Payment to small engineering items and other



goods.



MATERIAL COST CONTRL

MATERIAL COST CONTROL

Material cost control is the management of cost of material it consists

of the following .

1. Capital costs

2. Storage costs

3. Risk of price decline

4. Risk of obsolescence

MATERIAL

Material is very important factor for production . it includes physical

commodities used to manufacture the final end product. It is the

starting point from which the first operation start. Material refer to all of

commodities in the process of manufactures . Proper control of

material is necessary from the time order of purchase material are

palced with supplies . until the have been consumed.

COST

It is the amount of resources given up in exchange for some goods or services. The cost is that which is given or a sacrifice to obtain

something cost is also different from value as cost is measured in

terms of money whereas values is measured in terms of usefulness

or utility of an article.

We can define as : the amount of expenditure ( actual or notional )

incurred on or attributable to a given thing or to ascertain the cost of a

given thing.



Methods of controlling the size of material:

There arc two method of controlling as follows:

1) Standardization.

2) Simplification.

Standardization and simplification are the tools of material control to

optimize on the number of items and reduce the size of material,

carried in the stores.

Standard institutions:

Standardization and simplification are the continuousprocess for controlling the size of materials ,so there are many

institution regarding the help of this, these arc as follows

. Indian Standard Institute.

. International Organization for Standardization.

. Other Specialilised Institutions.

Types of stores department:

I) centralized stores

2) Decentralized stores

3) Central stores with sub- stores.

1) Centralized stores :In case of such a store, material are received

by and issued from one stores department materials kept at one

central store.

2) Decentralized stores:Under this type of stores, independent stores are situated in various

departments. Such types or stores setup to meet the requirements of

materials of each production department are not very popular

because of the heavy expenditure involved.

3) Central stores with sub-stores:



Such stores should be situated near production departments. For

each item of material, a quantity is determined and this should be kept

in stock in sub-store at the beginning of any period .In the end of a

period the storekeeper of each sub-store will requisition from thecentral stores.

Fixation of KO.Q. and various level:

a)E.O.Q.:

The decision about how much order has great significance in

inventory management .the quantity should be order neither small nor

big because cost of buying and carrying material are very high.

Economic order quantity is the size of the lot to be purchased

which is economically ) viable .this is the quantity of material which

can be purchased at minimum costs .economic order quantity is the

point at which inventory carrying cost is equal to order costs E.O.Q. is

made. 01' two parts.

Ordering cost. Carrying cost.

EOQ = 2All

I

Where:

A Annual.

B Cost of placing an order/. ordering cost or buying cost

PCI' unit

1 Inventory carrying cost of one unit

C*S(cost per unit*storage cost)

a) Minimum Level or safety stock level:

It represent the minimum qty. of an item ,which must be keep in store

at all time .the main (II' determination of minimum level is that ,due to

this, production should not be stoped.Calcu1all' formula of min. stock

level is as follows



Minimum level = Re-ordering level-(Normal

consumption*Normal Re-order – period

.b) Maximum Level:

It represents the maximum quantity of an item of material which can

be held in stock at any time .stock should not exceed this quantity .the

quantity is fixed so that there may bb no overstocking .the formula of

maximum stock level given by WHELDON is as follows

Maximum stock level= Reordering level + Re-ordering Quantity-

(Minimum

Consumption*Minimum Reordering period)

'--

c) Average stock level :

The average stock level is calculated by the following

formula:Average stock level = Minimum stock level + ½ of re-order

quantity

d) Reordering level :-The order is sent before the materials reach minimum stock

level.

Re-order level = Safety stock + (Average usage *Average re=-order period )OR

Maximum consumption * Maximum Re-order periodOR

Maximum usage * Maximum lead time



SAMPLE & TOOLS

1. First in first out ( FIFO)method :

Under this method material is first issued from the earliest

consignment on hand and priced at the cost at which that

consignment was placed in the stores .in other words, materials

received first arc issued first. the units in the opening stock of

materials are treated as if they are issued (first,

the units from the first purchase issued next and so on until the units

left in the closing stock of materials arc valued at the latest cost of

purchases.

['his method is most suitable in times of falling price of materials to

jobs or works orders will he high, while the cost of replacement of

materials will be low .but in case of rising prices this method is not

suitable because the issue price of materials to production will below ,while the cost of replacement of materials will be high.

Advantages of FIFO Method :

. Main advantage of FIFO method is that it is simple to understand

and easy to operate.

. It is logical method because it takes into consideration the normal

procedure. Of utilizing first those materials which arc received first

.Materials are issued in order of purchases, <;0 materials receivedfirst are utilized first.

. Under this method, materials are issued at the purchase price ;so

the cost of jobs or work order is correctly ascertained so far as cost of

materials is concerned. Thus, the method recovers the cost price of

the materials.

. This method is useful when prices are falling.



. Closing stock of materials will be valued at the market price as the

closing stock under this method would consist of recent purchase of

materials.

. This method is also useful when transactions arc not too many andprice of materials are fairly steady.

Disadvantages of FIFO method:

. ['his method is increase the possibility of clerical errors, if

consignment are received frequently at fluctuating prices as every

time an issue of materials is made ,the store ledger clerk will have to

go through his record to ascertain the price to be charged.

. For pricing one requisition more than one price has often to be

taken.

. When prices rise ,the issue price does reflect the market price as

material are issue from the earliest consignment .therefore the change

of production is low because the cost of replacing the material

consumed will be higher than the price of issue.

2)Last in first out method(LIFO) method:

The issues under this method are priced in the reverse order of

purchase i.e., the price of the latest available consignment is taken.

This method is sometimes known as the replacement cost method

because materials are issued at the current cost to jobs or work

orders except when purchases were made long ago. This method is

suitable in times of rising prices because material will be issued from

the latest consignment at a price which is closely related to the current

price levels. This method was first introduced in the U.S.A.during the

Second World War to get the advantages of rising prices

Advantages of LIFO Method:

. Like FIFO method, this is simple to operate and is useful when

transactions are not too many and the prices are fairly steady.



. Like FIFO, this method recovers cost from production because

actual cost of material is charged to production. .

. In times of rising prices, LIFO method of pricing issues is suitable

materials are issued at the current market prices which arc high.this method thus helps in showing a lower profit because of

increased charged to production during periods of rising prices and

lower profit reduces burden of income-tax..

Disadvantages of LIFO Method

. Like FIFO, comparison between one job and the other job will

become difficult because one job started a few minutes after

another of the same type many bear are different charged of

materials consumed.

. Like FIFO, this method many lead to clerical errors as every time as

issue is made. till..stored ledger clerk will have to go through the

record to as certain the price to be charge' . For pricing a single

requisition ,more than one price has often to be adopted. . The stockin hand is valued at price which does not reflect current market price.

3)A VERAGE COST METHOD:

The principle on which the average cost method is based is that all of

the materials in store arc show mixed up that an issue can not be

made from any particular lot of purchases and ,there fore, it is proper

if the materials arc issued at the average cost of materials in store.

Average may be of

two types :

I) Simple arithmetic

average.

2) Weighted arithmetic

average.



Simple average price : A price which is calculated by dividing the total

of the prices of the material in the stock from which the material to be

period could be drawn by the number of the prices used in that total.

Weighted average price : A price which is calculated by dividing thecost of materials in the stock from which the materials to be priced

could be drawn by the total quantity of materials in the stock.



2.2. OBJECTIVE OF STUDY

OBJECTIVE OF STUDY

1. To highlight the policies and procedures of Material cost control

2. To make a detailed analysis of the strategies adopted by the

company for planning and monitoring costs

3. To identify the vertical areas where greater attention is needed

for better management.

4. To find our better plan for company for controlling material.



PERSONAL POLICIY

QUALITY ASSURANCE OF CADBURY

1. Market high quality, superior value products that consistently meet

our specifications and comply with local regulatory requirements, while

continuously improving and exceeding our consumers ‘expectations.

2. Guarantee that our customers and consumers come first

by actively listening and understanding their quality and value

expectations at the points of purchase and consumption.

3. Ensure that any representation of our company image, including our products and trademarks, meet approved standards, reinforce our

commitment to quality and safeguard the reputation of Cadbury.

4. Maintain a “right first time” culture that consistently embraces

quality and food safety, where everyone understands their

responsibilities and accountabilities.

5. Operate audited quality management systems that continually

improve processes to deliver this policy and our standards.

6. Assign clear management accountability for setting and meeting

measurable goals and targets for quality and food safety.

7. Work with our supply chain and business partners to assure

compliance with our quality policy and systems, ensuring quality

throughout our supply chain.

8. Place continuous improvement at the heart of our performance

enabling us to deliver superior products and service to our consumers

and customers.

9. Create a passion for quality where success and achievement are

communicated, recognised and celebrated.



ENVIRONMENT, HEALTH AND SAFETY POLICY

At Cadbury PLC , we see sound and responsible

environmental, health and safety (EHS) management as an integral

part of achieving our goal to grow the value of our confectionery and

beverages businesses for our shareowners.

We believe that such an approach will generate and sustain significant

environmental, social and financial benefits, thereby contributing to our

objective of long-term sustainability.

1. Conduct our business in compliance with environmental, health and

safety laws and with our global standards, and regularly assess

the compliance of our operations against these requirements.

2. Maintain and continually improve systems to manage our EHS

responsibilities, establishing and ensuring employee accountability for

our EHS performance at all levels of the organisation.

3. Set clear targets for continual improvement in our EHS performance

and monitor these targets to ensure that they are met.

4. Strive to prevent pollution and to minimise the environmental costs

and impacts of our global operations.

5. Provide a safe and healthy environment for our employees,

contractors and other visitors to our sites6. Train and motivate our employees to understand their EHS

responsibilities and to participate actively in our EHS programmes

7. Communicate with our shareowners, employees, customers and other

interested parties by regularly reporting on our EHS performance and

maintaining an open dialogue.

8. Review and update this policy regularly.

http://www.cadburyschweppes.com/







PRODUCTION & OPERATION

PRODUCT OF MALANPUR FACTROY

The story of Cadbury Dairy Milk started way back in 1905 at

Bournville, U.K., but the journey with chocolate lovers in India

began in 1948.

The pure taste of Cadbury Dairy Milk is the taste most Indians

crave for when they think of Cadbury Dairy

Recently, Cadbury Dairy Milk Desserts was launched, specifically

to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy

Milk Wowie, chocolate with Disney characters embossed in it, and

Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate

and white chocolate. Giving consumers an exciting reason to keep

coming back into the fun filled world of Cadbury.

Our Journey:

Cadbury Dairy Milk has been the market leader in the chocolate

category for years. And has participated and been a part of every

Indian's moments of happiness, joy and celebration. Today,

Cadbury Dairy Milk alone holds 30% value share of the Indian

chocolate market.

In the early 90's, chocolates were seen as 'meant for kids', usually

a reward or a bribe for children. In the Mid 90's the category was

re-defined by the very popular `Real Taste of Life' campaign,

shifting the focus from `just for kids' to the `kid in all of us'. It



appealed to the child in every adult. And Cadbury Dairy Milk

became the perfect expression of 'spontaneity' and 'shared good

feelings'.

The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for

The Best Integrated Marketing Campaign and Gold in the

Consumer Products category at the EFFIES 2006 (global

benchmark for effective advertising campaigns) awards.

Did You Know:

Cadbury Dairy Milk emerged as the No. 1 most trusted brand in

Mumbai for the 2005 edition of Brand Equity's Most Trusted Brands

survey.

During the 1st World War, Cadbury Dairy Milk supported the war

effort. Over 2,000 male employees joined the armed forces and

Cadbury sent books.



MARKETING OF CADBURY

Dairy Milk has always tried to keep a strong association with milk, with

slogans such as "a glass and a half of full cream milk in every half

pound" and advertisements that feature a glass of milk pouring out andforming the bar.

A campaign for the Fruit & Nut variety ("everyone's a fruit

and nutcase") was particularly memorable and featured the writer,

radio and television personality Frank Muir.

On 9 March 1976, American singer Neil Diamond performed a

concert televised throughout Australia during which he did a

humorous live commercial for Dairy Milk. This concert,

including the ad as a bonus selection, was released on DVD on 1 July

2008.

http://en.wikipedia.org/wiki/Milk

http://en.wikipedia.org/wiki/Advertisement


http://en.wikipedia.org/wiki/Frank_Muir

http://en.wikipedia.org/wiki/March_9

http://en.wikipedia.org/wiki/1976


http://en.wikipedia.org/wiki/Neil_Diamond

http://en.wikipedia.org/wiki/July_1



http://en.wikipedia.org/wiki/Advertisement


http://en.wikipedia.org/wiki/Frank_Muir



http://en.wikipedia.org/wiki/Neil_Diamond

http://en.wikipedia.org/wiki/July_1





In 2004, Cadbury's started a series of television advertisements in the

United Kingdom and Ireland featuring a person and an animal

representing the person's happiness debating whether to eat one of a

range of bars including Dairy Milk.

In 2005, Cadbury's original Dairy Milk bar celebrated its 100th

birthday, being first sold in 1905. It remains the UK's biggest selling

chocolate brand. Dairy Milk is sold in the United States under the

Cadbury label, but it is manufactured by the Her shey's company in

Pennsylvania.

On 28 March 2008, the second Dairy Milk advert produced by Glass

and a Half Full Productions aired. It features several trucks at night on

an empty runway at a Mexican airport racing to the tune of Queen's

"Don't Stop Me Now". The ad campaign ran at the same time as the

problems at Heathrow Terminal 5 with baggage handling; in the advert

baggage was scattered across the runway.

On 5 September 2008, the Gorilla advert was relaunched with a new

soundtrack – Bonnie Tyler's "Total Eclipse of the Heart" – a reference

to online mash-ups of the commercial. Similarly, a version of the truck

advert appeared, using Bon Jovi's song "Livin' on a Prayer".News Related to Cadbury

1.Cadburys relaunches Bournville chocolates news 15 October,

2008

Bournville, a much neglected dark chocolate bar from Cadburys' has

been relaunched as a new category of dark chocolates in India.

http://en.wikipedia.org/wiki/Television

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/Ireland

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Hershey's


http://en.wikipedia.org/wiki/Pennsylvania




http://en.wikipedia.org/wiki/Queen_(band)

http://en.wikipedia.org/wiki/Don't_Stop_Me_Now

http://en.wikipedia.org/wiki/London_Heathrow_Terminal_5

http://en.wikipedia.org/wiki/Bonnie_Tyler

http://en.wikipedia.org/wiki/Total_Eclipse_of_the_Heart

http://en.wikipedia.org/wiki/Mashup_(video)

http://en.wikipedia.org/wiki/Bon_Jovi

http://en.wikipedia.org/wiki/Livin'_on_a_Prayer

http://en.wikipedia.org/wiki/Television



http://en.wikipedia.org/wiki/Ireland

http://en.wikipedia.org/wiki/United_States


http://en.wikipedia.org/wiki/Pennsylvania



http://en.wikipedia.org/wiki/Queen_(band)

http://en.wikipedia.org/wiki/Don't_Stop_Me_Now

http://en.wikipedia.org/wiki/London_Heathrow_Terminal_5

http://en.wikipedia.org/wiki/Bonnie_Tyler

http://en.wikipedia.org/wiki/Total_Eclipse_of_the_Heart

http://en.wikipedia.org/wiki/Mashup_(video)

http://en.wikipedia.org/wiki/Bon_Jovi

http://en.wikipedia.org/wiki/Livin'_on_a_Prayer



"Dark chocolate is one of the fastest growing categories abroad.

However, in India, it is still in a nascent stage.

Thus, we are almost doing category creation with this launch," said

Sanjay Purohit , executive director- marketing and international

business, Cadbury India

2.Festive campaigns by Coca Cola and Cadburys news 03 October

2008

Coca Cola has launched a special festive season communication drive

of its carbonated drink brand Thums Up. While the "Taste the

Thunder" TV commercial features Akshay Kumar performing

acts like mountaineering and roller coaster ride, the company is also

launching a similar initiative for the market in southern states featuring

Tollywood star Mahesh Babu.

The initiative comes as a follow-up to the company's announcement of

venturing into the 350 ml pack segment of all its major brands.

3.Cadbury and Tamil Nadu Agricultural University join hands for

cocoa research project news 30 May 2008

Mumbai: Cadbury Asia Pacific, the Asian arm of UK confectionery

giant Cadbury Plc, has recalled 11 types of its Chinese-made chocolate

as a precaution, the Hong Kong government said in a statement.



In a statement, issued from its Singapore office, Cadbury said

it has recalled 11 chocolate products as tests ''cast doubt on the

integrity of a range of our products manufactured in China.''

The products were meant for distribution in Taiwan, Hong Kong and

Australia, its said.

Tests ''cast doubt on the integrity of a range of our products

manufactured in China,'' Cadbury said in the statement issued from its

office in Singapore.

4.Cadbury, others recall China-made confectionery news 29

September 2008

Mumbai: Cadbury Asia Pacific, the Asian arm of UK confectionery

giant Cadbury Plc, has recalled 11 types of its Chinese-made chocolate

as a precaution, the Hong Kong government said in a statement.

In a statement, issued from its Singapore office, Cadbury

said it has recalled 11 chocolate products as tests ''cast doubt on

the integrity of a range of our products manufactured in China.''

5.Worm turns for Cadburynews Mohini Bhatnagar 28 November

2003

Hyderabad: The worms in the chocolate bars controversy has hit

Cadbury India where it hurts most and that is in sales. The

company today faces tough times ahead as the business

environment for its chocolates becomes increasingly negative with

rising raw material prices and low consumer sentiments, post the



worms controversy in October this year.

6.Cadbury India net profit at Rs 190 million news 13 July 2002

Mumbai: Cadbury India Ltd has posted a net profit of Rs 190 million

for the quarter ended 16 June 2002 as compared to Rs 93.60 million for

the quarter ended 17 June 2001.



STRENGTH & WEAKNESS

Strengths

• Cadbury is the largest global confectionery supplier, with 9.9%

of global market share.

• Strong manufacturing competence, established brand name and

leader in innovation.

• Advantage that it is totally focused on chocolate,

candy, chewing gum, unique understanding of consumer inthese segments.

Weaknesses

• The company is dependent on the confectionery and beverage

market, whereas other competitors e.g. Nestle have a more

diverse product portfolio, where profits can be used to invest in

other areas of the business and R&D.

• Other competitors have greater international experience -

Cadbury has traditionally been strong in Europe. New to the US,

possible lack of understanding of the new emerging markets

compared to competitors.



Suggestions

1. Necessary knowledge and skills about new learning strategies at all

levels;

2. Accreditation of the current teacher training and staff development

programs offered by various providers;

3. A critical mass of local experts to spread the new knowledge and

skills throughout the teachers in the country;

4. Suitable alternative model for in-service training;

5. A plan for national implementation;

Indication of support and commitment by the government



SPECIAL POINT

Use of Advertising'

No. 1 FMCG Company

Cadbury India has been ranked as the 7th Great Place to

Work and the No. 1 FMCG company in India in 2008, by

the Great Place to Work Institute.

Great Place to Work 2007'

Cadbury India' has been awarded the "Bronze Award for Excellence in

People Management" in the 'Great Place to Work 2007' survey

conducted by Grow Talent Company Limited and Business

world. The award recognizes Cadbury India as a

national leader in the area of Human Resource

Management.

Great Place to Work 2007'

Cadbury India' has been awarded the "Bronze Award for Excellence in

People Management" in the 'Great Place to Work 2007' survey



conducted by Grow Talent Company Limited and Business world. The

award recognizes Cadbury India as a national

leader in the area of Human Resource

Management.

Cadbury India received a bronze award at the

Cannes Lions International Advertising Festival for partnering with a

mobile phone operator in 2005 to provide exam results

via SMS to school children.

Reader's Digest Award recognizes Bournvita

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the

vitamin health supplement category in Indian in 2006. The merit was based on 7000 responses from questionnaires and telephone interviews

across Asia.

Suraksha Puraskar Award – 2005

Cadbury India's Bangalore factory has received the "Suraksha

Puraskar" safety award from the National Safety Council - Karnataka

chapter.

ABBY Award wins for India.

The prestigious ABBY awards, held in March, recognise

creative excellence in the Indian Advertising Industry. The Ulta

Perk campaign won four Silver Awards in total and the



Cadbury Dairy Milk Campaign, Miss Palampur, also won a

Silver Award. This year Cadbury also sponsored the new 'Young

ABBY' Award.

Cadbury wins the Effies 2006

At the recent Effie 2006 awards organized by The Advertising Club of

Mumbai, our 'Pappu Pass Ho Gaya' advertising campaign bagged two

more awards - Gold in the Consumer Products

category and Silver in the integrated advertising

campaign category.



INTRODUCTION

INTRODUCTION of TOPIC

In India we believe that effective communication and availability of

information at the right team and time and right place is critical for an

edge in business. In order to achieve this we realize to importance of

and have in place, an effective IT infrastructure.

Cost accounting isn’t just collecting data for history . it is an important

tool in predicting and assuring future profitability . We can’t overstress

the importance of our costing tools that provide complete cost

estimates at the time of quotation/order entry based on your latest

materials, labor and overhead costs.

MATERIAL COST CONTROL

Material cost control is the management of cost of material it consists of

the following .

5. Capital costs

6. Storage costs

7. Risk of price decline

8. Risk of obsolescence

MATERIAL

Material is very important factor for production . it includes physical

commodities used to manufacture the final end product. It is the

starting point from which the first operation start. Material refer to all of

commodities in the process of manufactures . Proper control of material



is necessary from the time order of purchase material are palced with

supplies . until the have been consumed.

COST

It is the amount of resources given up in exchange for some goods or

services. The cost is that which is given or a sacrifice to obtain

something cost is also different from value as cost is measured interms of money whereas values is measured in terms of usefulness or

utility of an article.

We can define as : the amount of expenditure ( actual or notional )

incurred on or attributable to a given thing or to ascertain the cost of a

given thing.



DISCUSSION

I have found here these below things from analysis of data.

• For economic purchase order of 114 units of MS PIPE. We

analysis of three quotations for choosing lower cost of material.

We select the B.D. Raj. & Co’s quotation because the lower cost

of material. This is the 56185.469 with applying 4% ST & fright.

• In store material we found these below things from the store

keeping receipt. Here we show about the two type of material.

ITEM CODE Re-order

level

Max. stock

level

Min. stock

level

Avg. stock

levelCC5801008 1290 1700 540 990CC5801009 2700 3600 900 1500

As such we can get these levels for further items.

• For issuing the material we found the knowledge through FIFO

and LIFO method. How material received in store and how should

issue it from the store etc.

• During my research period. I have found material cost control

management of the company is very sound that’s why their

economic position is also very sound.



OBJECTIVE OF STUDY

OBJECTIVE OF STUDY

1. To highlight the policies and procedures of Material cost control

2. To make a detailed analysis of the strategies adopted by thecompany for planning and monitoring costs

3. To identify the vertical areas where greater attention is needed for

better management.

4. To find our better plan for company for controlling material.



SUGGESTION

During my research period I have studied the MATERIAL COST

CONTROL in CADBURY IND. LTD at MALANPUR. On the basis of my

study I am putting some suggestion. Which may certainly improve the

efficiency of material cost control management.

• FIFO and LIFO methods should be apply for keeping and issuing

the material in stores.• I suggest through research in this regard to arrive at some

suitable mix of both this method which gives due consideration to

value, quality importance etc of stock items.

• The maximum and minimum level of each item should be

indicated to avoid over-stock or under-stock situation.

• Internal performance report an inventory on at least monthly basis

should be prepared to study the material price variance, material

usage and inventory level variance from hr estimate figure.

• Material should be purchase at the lower cost but also quality

should be maintains.



CONCLUSION



BIBLIOGRAPHY

I concerned the following references in course of my research

study

1. Kotari C.R. , Research methodology (Methods & Techniques),

Wishwa Prakashan, 24th Reprint March 1999/

2. CHANDRA PRASANNA, FINANCIAL MANAGEMENT, Tata Megraw-Hill publishing com. Ltd. New Delhi, Fifth edition 2002.

3. Shukla SM, ACCOUNTING FOR MANAGERS, SAHITYA BHAWAN

PUBLICATION COM. Ltd Raipur.

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Cad Bury Finance

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