Ekansh chapter 1,2,3,4,5
Embed Size (px)
Transcript of Ekansh chapter 1,2,3,4,5
Profile of Bikanervala Foods Private Limited
1.1 Bikanervala Foods Private Limited
Bikanervala Foods Private Limited has its registered office at A-28, Lawrence Road
Industrial Area, New Delhi - 110035 (India) , Phone: 47006700, 27151607 .The website
address of Bikanervala Foods Private Limited is www.Bikanervala.com.
Bikanervala Foods Private Limited is one India’s most prominent families in the business
of traditional hospitality products like sweets and namkeens. Bikanervala Foods Pvt. Ltd.
is an ISO 9001:2000, HACCP and SQF 2000 certified company in India and aboard,
serving vegetarian North Indian, South Indian, Continental, Chinese cuisine and Fast
Food along with a vast variety of traditional Indian sweets and snacks. Bikanervala was
started in 1950, when a large family of traditional halwais from the famous city of
Bikaner decided to explore business opportunities beyond Rajasthan. They migrated to
Delhi and brought with them a treasure of traditional recipes perfected by their
forefathers. Bikanervala running outlets at Chandigarh, sonipat, Delhi and NCR,
Lucknow, Meerut ,Varanasi , Hyderabad and patna etc.
Bikanervala present not only in India but also across the world such as Nepal, UAE
Canada, USA, United Kingdom, Germany, China, Middle East Europe, Sri Lanka,
Singapore, Thailand, Malaysia, Australia and New Zealand.etc., gained very much
popularity for maintaining the Indian taste into the modern class through its eateries.
1.2 Nature of Bikanervala Foods Private Limited
1.21 BFPL belongs to Indian Food Industry
India is the world’s second largest producer of food with the potential of being the
biggest, backed by its food and agricultural sector. The food processing industry is
one of the largest industries in India and is ranked fifth in terms of production,
consumption, export and expected growth. The total food production in India is likely
to double in the next 10 years with the country’s domestic food market estimated to
reach US$ 258 billion by 2015.The food industry in India has been attracting a lot of
attention from foreign investors as the country is close to the markets of Middle East,
Africa and South East Asia.
1.22 Profile of Bikanervala Foods Private Limited
Being one of the emerging service providers across the country, BFPL are engaged in
rendering Catering Services for receptions to the respectful clients. BFPL thinks
clients as an asset of the organization, because clients are the main factors behind
business achievements. BFPL provide services with single intention to render
services with best quality, so that both clients and organization could get appreciation
from Guests and other people. BFPL cater their services to a large number of
industries like residential complexes, hotels and many more.
BFPL highly admired for the services like fine quality, cost effective, well dressed
service provider. BFPL also focuses on the services like outdoor catering, corporate
catering services, birthday catering services, Food carving etc. Bikanervala
manufacturing the products like Sweets, namkeen, snacks, ready to eat food, frozen
food, syrups, crunchy papad, crispy papad, pickles, cookies, mango shakes sweets,
mango shakes etc.
Bikanervala’s focus is to attract the customers and to maximize the market share and
profit. They sell their product in attractive packagings decorated with traditional
touch and introduce free schemes and gift hampers to attract the customers. For
example, Bikanervala launched many products for the special occasion like Albela
sonpapdi, meetha bandhan (rasgullas), tarang namkeen packs. They have a very
efficient pricing strategy as per the competition prevailing in the market. Bikanervala
promote their products through advertisements and networking sites like facebook ,
twitter etc. and Bikanervala also offers various types of discounts and gift hampers
for lunch and dinner on festival days. For example, Bikanervala outlets provides
discounts for special occasion.
1.3 Vision and Mission of BFPL
The vision and mission statement of Bikanervala Foods Private Limited are -
BFPL’s vision is to promote India and Indian heritage, culture and cuisine worldwide.
BFPL is focusing on customizing Indian food for the Global Market.
BFPL’s mission is to review, recreate and rediscover the trend of healthy eating and
innovate and invent fresh new methods to nourish and delight everyone we serve.
1.4 Product Range of BFPL
Product range of BFPL are :-
1.41 North Indian Food –
Food from North India is characterised by its thick, tasty gravies. North Indians love
chillies, saffron, milk etc. In the category of North Indian Food , Bikanervala offers
items like shahi paneer, daal makhni, veg pulao etc. which are ranging between Rs.
65 to Rs.180.
1.42 South Indian Food –
In the category of South Indian Food , Bikanerwala offers items like masala dosa,
onion uttapam, Idli sambhar etc. which are ranging between Rs. 65 to Rs.130.
1.43Sweets, Drinks and Ice creams –
Bikanerwala also care the customers with their sweets and shakes which includes fruit
salad, milk shakes, flavored ice creams, rasogolla, rajbhog, rasmalai etc. which comes
under the price category between Rs.32 to Rs.175.
1.44Chinese and Continental –
In the category of Chinese and continental, Bikanervala offers items like soups,
spring roll, burger, chowmein etc. which are ranging between Rs. 65 to Rs.150.
1.45Snacks and chaat –
In the snacks and chaat segment, Bikanervala offers paani puri, aloo tikki, pyaz
kachori, samosa etc. which are ranging from Rs.14 to Rs.340.
1.5 Size and Manpower of BFPL
Bikanervala has total turnover of 400 crore. BFPL deals in business like Exporter,
Importer, Manufacturer, Wholesaler, Distributor, Supplier, Trading Company. In
terms of manpower, Bikanervala has 1200 manpower in both outlet and factory.
1.6 Organization Structure of BFPL
Figure no.1.1: Organization Structure of BFPL
BFPL follows functional structure because it classifies people according to the
function they perform in their professional life or according to the functions
R & D Salary Finance H.R.M.
Sales Quality Costing Customer Care
performed by them in the organization. The organizational chart for a functional
organization consists of a sales department, a customer service department,
production department, accounting department etc. In BFPL the authority is in the
hand of managing director then this authority is followed by director and chief
executive officer. After executive officer authority is divided between Assistant vice
president and executive vice president . After that authority is given to Functional
departments like marketing , finance , production etc.
1.7 Market Share and Position of BFPL in the Industry
1.71 Market share of Bikano and its competitors -
Chart No.1.1 : Market Share
Market share of Bikano is 14% which is still lower than the Haldiram and frito lays .
In terms of market share, Bikano is higher than Lehar because Bikano is one of the
manufacturing partner of the lehar. Unorganized sector is also play an important role
with a market share of 16%.
1.72 Market Position of BFPL
Haldiram Bikano Lehar Others
Sales (in crores) 150 95 75 40
Sales (in crores)
Chart 1.2: Market Position
The above chart shows the market position of Bikanervala Foods Private Limited in
the industry. BFPL's competitors like Haldiram , Lehar etc are also shown on the
above chart. Haldiram is top on the list with 150 crores sales turnover annually.
Haldiram who is focus on the upper level customers is one of the top company in this
sector. But when you compared the Diwali sales then Bikano sales is higher than
Haldiram because of attractive packings, prices etc. Bikano helps Lehar in the
manufacturing sector of namkeen that's why Bikano share is more than Lehar.
1.8 Present Leadership
During the internship the researcher got the chance to interact with various other
a.) Mr. Mohin Shaili
( Branch Manager , Preet Vihar)
b.) Mr. Akshay
c.) Mr. Satyakant Pant
d.) Mr. Chandan
(Accounts Head )
1.9 Sources of data collection
1.91 Primary Data:
The primary data are those which are collected for the first time, we can obtain
primary data either through observation or through direct communication with
respondents in one form or through personal interview. There are several methods of
collecting primary data, but in this research work primary data collected by using
observation. Primary data is collected through:
a.) Personal interaction
1.92 Secondary Data:
Secondary data means data that are already available i.e. they refer to the data which
have been already been collected and analyzed by someone else. When the researcher
utilizes secondary data, then he has to look into various sources from where he can
obtain them. In this research work, secondary data collected through the
b.) Company booklets etc
Chapter – 2
SWOT Analysis of Bikanervala Foods Private Limited
2.1Strengths & Weaknesses of BFPL
a.) Middle class customers are the
b.) Strong distribution network making
the products available in India and
c.) Attractive Diwali gifts packing.
d.) ERP system is a major coordination
system between outlet and factory.
e.) Strong brands like Bikano,
Bikanervala, Bikano chat café etc.
f.) Bikano chat cafes present in
corporate houses and malls etc.
a.) Limited quality testing service at the
b.) Facing strong competition from the
c.) Limited number of stores in south
India and mostly concentrated in
d.) Less advertisement
e.) High labor turnover and absenteeism.
f.) Schemes given to retailers are not
BFPL's strengths and weaknesses are dependent on certain factors like brand name ,
targeting customers , techniques used in the organization etc. BFPL includes strong brand
names like Bikano, Bikano chat cafe, Bikanervala etc. BFPL focus on ERP system for
supply, finance, transfers etc. On the other hand, there are some weaknesses like less
advertisement, less retailers satisfaction level because BFPL does not provide enough
schemes to the retailers.
2.2 Opportunities & Threats of BFPL
a.) Launch products for health conscious
people like sugar free sweets and
snacks with low trans-fat, etc.
b.) Need to increase its presence in
international markets. Example –
c.) Opportunity for online ordering
d.) Advertise itself on various platforms.
e.) Opportunity to introduce Bikano chat
café brand name in the global market.
f.) By providing proper schemes Bikano
can increase its supply.
a.) Competition from top brands like
b.) Increase in the cost of raw materials.
c.) Global economic instability and
d.) New government regulations and
role of the government.
e.) Increase in number of competitors.
f.) Changes in the customers taste and
BFPL's opportunities and threats are dependent on certain factors like International
markets, online ordering system, advertisement policy, competition level in the industry
etc. BFPL needs to focus on sugar free sweets for supply and fat free namkeens and
snacks, need to improve online ordering system. On the other hand, there are some
threats like competition from top companies like Haldiram, MTR etc. Government
regulations and policies also one of the biggest threats for BFPL.
2.3 USP of Bikanervala Foods Private Limited
As any other company this company has major functions each and every function is
very important for the organization. Major functional areas are followings:
2.31 Marketing function
Bikanervala focus on good quality , fresh items , hygienic and tasty indian sweet and
snacks specially in namkeen. In the marketing part BFPL focus on the STP strategy
which is basically segmentation, targeting and positioning. Bikanervala segmenting
the people who like Indian sweets ,namkeens and other traditional snacks. Middle and
upper class urban families are basically the target of Bikanervala. Position of
Bikanervala's food like indian sweets and snacks manufacturer as an alternate to
western fast food.
2.32 Information Technology
Bikanervala use information technology enabled services like Enterprise resource
planning (ERP). ERP is use for transferring of information related to Purchase order,
return order, outlet order to HO, discount report, daily cash report, gross profit report,
sales report, MIS report, consumption report, VAT report, delivery reports etc. from
outlet to HO.
2.33 Inventory Management
Bikanervala maintains proper inventory control system. Items are grouping in the
categories of packaging material, rejected items area, ghee & oil material, raw
materials, bread pizza material etc.
2.34 Human Resource Management
In the Human resource section, Bikanervala maintains proper staff relation which
includes labor turnover, compensation, outstanding salary, bonuses etc. Bikanervala
also maintain industrial relations with the companies like steel authority of India,
intech hotel solution, hero moto corp., hindon engineering private limited etc.
2.35 Finance Function
In this they practice all the functions of finance. But major are followings control
over all cash inflows and outflows , taxation , tight control over miscellaneous
2.4Variations/Deviations in practices
There is some variations in the Bikano internal environment. Selection process is
differ in Bikano as compared to normal selection process of the company. As
selection process include following steps -
a.) Preliminary interview
b.) Selection test
c.) Employment interview
d.) Reference and background analysis
e.) Physical examination
f.) Job offer
g.) Employment contract
The selection process followed by the Bikano include following steps:
a.) Candidate aptitude test
b.) Interview with HR person
c.) Interview with HOD
d.) Introduction with salary section
Chapter – 3
Data Collection & Presentation
3.1 Data Collection
Data related to key functional areas such as Marketing, Human resource management,
Finance, ITeS etc. of the company are included in this chapter. The Data under each
functional area has to be collected on the basis of information mentioned below:
3.11 Human Resource Management
a) HR Planning, Recruitment, Selection and Induction
The ongoing process of systematic planning is to achieve optimum use of an
organization's most valuable asset - its human resources. The objective of human
resource (HR) planning is to ensure the best fit between employees and jobs, while
avoiding manpower shortages or surpluses. The three key elements of the HR
planning process are forecasting labor demand, analyzing present labor supply, and
balancing projected labor demand and supply.
Structure of HR Department -
Figure No.3.1 - HR Department Structure
Team of Executives
Team of Executives
The above structure of BFPL shows the authority of the HR department. Executive
Vice President is at the top level who is followed by Human Resource head, other
managers and team of executives.
HR Planning processes has been executed once in a year before starting of the
financial year. It helps to manage time and expenses efficiently in searching human
resource in advance. Employees are one of the major asset of an organization. In
BFPL, total number of employees is about 2000 out of which 1500 employees are
permanent employees and remaining 500 employees are temporary employees.
Employee turnover rate (ETR) in a year is 8% to 9.5%. Major reasons for attrition or
Labor Turnover are motivation by higher pay grade by other company, less engaged
in work, working conditions, job dissatisfaction etc. Average rate of retirement is
about 5 years in Bikanervala Foods Private Limited.
Recruitment process in BFPL is based on internal and external recruitment.
Recruitment is a process of finding and hiring the best qualified candidate for a job
opening in a timely and cost effective manner. Recruitment can be done through
internal and external sources.
i) Internal Recruitment
Internal recruitment is a method of identifying and attracting job candidates from
within the organization. BFPL focus on the internal recruitment by using different
sources like Transfers, Promotions, Data base, Referral, Internal job.
ii) External Recruitment
External Recruitment is one which a human resources department systematically
search the employee pool outside its own employees to fill positions. External
recruitment in BFPL can be done through Job portals, Consultants, Campus,
Selection process contains some deviations in BFPL. In the selection process from
executive to manager, first step is to take an interview by the HR executive, after this
a meeting or an interview with the head of the department, then meeting between the
HR head and the candidate and the last step is the interview with the director. In the
selection process for the designation above to the manager, first step is to take an
interview HR executive and then interview with (HOD) head of department, after this
the meeting with the HR head and then interview with the director and after passing
all the above steps the last step is to interview with the MD or the CEO. In BFPL, the
induction program is being held for the duration of one day to seven days for the new
There are different skills required for the managers that depend upon the function-to-
function and level-to-level. Certain number of years of experience may require for the
managers. Some managers need to clear certifications like PMP before holding the
position. The probationary period varies widely depending on the business, but can
last anywhere from 30 days to several years. But in BFPL, the probation period is
nearly about six months. The manager is an employee who is responsible to plan,
direct and oversee the operations and fiscal health of a business and leading the work
of a group of people etc.
Duties and Responsibilities of a manager are -
i) Work with Human Resources staff to recruit, interview, select, hire, and
employ an appropriate number of employees.
ii) Provide oversight and direction to the employees in the operating unit in
accordance with the organization's policies and procedures.
iii) Plan and implement systems that perform the work and fulfill the mission and
the goals of the department efficiently and effectively.
iv) Plan and allocate resources to effectively staff and accomplish the work to
meet departmental productivity and quality goals.
Qualities and Qualification of a manager are –
i) A minimum of five years of experience in business management, planning
and financial oversight.
ii) A minimum of three years of experience working with a board of directors.
iii) College graduate or equivalent experience.
iv) Demonstrated ability to work in a proactively diverse and inclusive
v) Demonstrated ability to multitask and work in a fast paced office setting.
Human Resource Information System is a system which seeks to merge
the activities associated with human resource management (HRM) and information
technology (IT) into one common database through the use of enterprise resource
planning software. The goal of HRIS is to merge the different parts of human
resource including payroll, labor productivity and benefit management into a
less capital intensive system than the mainframes used to manage activities in the
b) Training & Development
A managerial employee is defined as someone who makes, executes, and exercises
independent judgment about management policies. The types of training followed by
Bikano for managerial employees are time management, leadership and Stress
management. On the other hand, Non-managerial employees are assigned to perform
various tasks and duties and are accountable to their corresponding managers. The
types of training followed by Bikano for non managerial employees are team
approach, decision making and grooming.
c) Performance Appraisal and Recognition System
Performance appraisal is based on PMR (Performance management review). It is a
process where there is a frequent performance review meeting between the manager
and subordinate are held. Initially, monthly reviews may be used and then extended to
quarterly review. Achievement is considered in annual appraisal process. Frequency
of performance appraisal process in Bikano is annual based. The role of supervisor in
performance appraisal system is to give rating to the performance of the subordinate.
Role of self (employee himself) in performance appraisal system is to achieve the
target or goals of the organization.
d) Career Development
Career development opportunity for managerial employees is done through cross jobs
and in house & off campus and for non managerial employee is done through in
house & off campus training and buddy training i.e. external training. Facility for self
development is done through the provision of attending seminars/conferences. Job
rotation, job enrichment or job enlargement opportunity is done on the basis of
qualification, skills, experience of the employees.
e) Reward or Compensation Management
Components of wages and salary are gross salary, variable salary, incentives etc.
Percentage of DA (dearness allowance) for employees is 13%. Ex gratia benefits for
managerial and non managerial employees is given through gratuity. Mode of
payment of wage/salary is done through bank transfer. Deduction from wage/salary is
done through ESIC + PF&TDS (as applicable). Bonus provision is done as per
payment of bonus act. There is no profit sharing plans. BFPL also provide Medical
benefits like group medical insurance policy applicable to employee not covered in
ESIC. Paid leave given by the company is 15 per year and insurance benefit as per
Bikanervala provides its employees a healthy working environment. A healthy work
environment means a place where employees have a safe and clean work
environment, where they have strong and supportive working relationships that give
them a sense of control and influence over what happens to them, and where they are
encouraged to look after their own health both at work and at home. Employees of
Bikanervala work for 9 hrs a day i.e. from 9.30 am to 6.30 pm. BFPL gives its
employees 15 paid leaves in a year with 7 casual leaves and 7 sick leaves. BFPL
provides its employees various social security measures like medical care, sickness
benefits, maternity benefits, employment injury and with regard to various formal and
informal socialization process only celebrations of various festivals are done in the
g) Grievance Handling
Major reasons of grievances in BFPL are related to employee’s pays and promotions,
demand for safety appliances. Bikanervala follows various in house activities,
seminars, inter and intra department meetings for settling employee grievances.
h) Safety Policies & Practices
In Bikanervala accidents occur frequently and the main cause of these accidents are
due to slippery floors, heavy loading and unloading of material and products, by use
of sharp kitchen utensils. Workers in the factory are provided with proper uniform
and proper cleaning and checking of the factory is done in order to prevent accidents
from occurring. The role of safety officer is to ensure that proper safety measures are
taken in the factory, all the safety equipments like fire extinguisher are there in the
organization and in working condition. Various safety policies adopted by the
organization are regular refillment of extinguisher, regular factory cleaning schedule
3.12 Information Technology enabled Services
a) Technology quotient in managing company
E-commerce (electronic commerce or EC) is the buying and selling of goods and
services, or the transmitting of f/unds or data, over an electronic network, primarily
the Internet. These business transactions occur either in business-to-business,
business-to-consumer, consumer-to-consumer or consumer-to-business. E-commerce
is conducted using a variety of applications, such as email, fax, online catalogs and
shopping carts, Electronic Data Interchange (EDI), File Transfer Protocol, and Web
services. Business-to-business (B2B): It Describes commerce transactions between
businesses, such as between a manufacturer and a wholesaler, or between a
wholesaler and a retailer.
Business –to- consumer (B2C): A transaction that occurs between a company and a
consumer is called as called B2C. The term may also describe a company that
provides goods or services for consumers.
Business-to-government (B2G) is a derivative of B2B marketing and often referred to
as a market definition of "public sector marketing" which encompasses marketing
products and services to various government levels - including federal, state and
local, through integrated marketing communications techniques such as strategic
public relations, branding, advertising, and web-based communications.
Bikanervala Online Head Office Warehouse
Transit Delivery Packaging
Figure No.3.2 – Order online process
Appointed logistics vendor will deliver order from ITL to customer
Delivery will be made within 3-5 days depending upon location
Payment will be transferred to ITL on fortnightly basis against bill raised.
Customer will get notification of order status
Order delivered to customer
Customer will make order online on Bikanervala website
Order will flow in HO and same will be sent to ITL after payment received in account
Order will be processed at ITL under customer account TBD
Product release and packaging for dispatch at ITL
Delivery will be made within 3-5 days depending upon location
Order delivered to customer
Customer will get notification of order status
Payment will be transferred to ITL on fortnightly basis against bill raised.
In the above figure, Customer will make order online on Bikanervala website then
Order will flow in HO and same will be sent to ITL after payment received in account
after that Order will be processed at ITL under customer account TBD. The Product
is release and send to ITL outlet packaging and dispatching. After that appointed
logistics vendor will deliver order from ITL to customer. The delivery will be made
within 3-5 days depending upon location. Customer will get notification of order
status and Payment will be transferred to ITL on fortnightly basis against bill raised.
a) Product Planning Process
Product planning process is the ongoing process of identifying and articulating
market requirements that define a product’s feature set. Product planning serves as
the basis for decisions about price, distribution and promotion. Additionally, a small
company must have an exit strategy for its production case the product doesn’t sell.
Product planning entails managing the product throughout its life using various
marketing strategies, including product extensions or improvements, increased
distribution, price changes and promotions.
Figure No.3.3 – BFPL’s Product Line
Bikanervala Bikano Bikanervala boutique hotel Angan
Bikano chat cafe
North India, Singapore, London, Middle East countries are the important markets for
the Bikano products and a 200 percent sales recorded in past two years.
The various components of promotion mix of Bikanervala are Advertising media
(TVads, Radio, print media) , Sales promotion (discounts, sales) , Personal selling
and Public relations. Marketing department of BFPL provides a fund of Rs.98, 00,000
every year for its marketing practices. A budget is prepared by the experts and is
allocated on the channels of marketing the best way for getting the best results.
Bikanervala spent 7 lakhs on Radio advertising & promotion activities in 2014-15.
c) Channel Management
Bikanervala has a strong distribution management in India & Abroad. Channel
system of BFPL includes 1200 Distributors, 140000 Retailers. Bikanervala has 55
Bikanervala outlets and 90 outlets of Bikano chat café.
3.14 Production & Operations
a) System of Resource Management
System of resource management in BFPL is depends on various factors like for
manpower there is solution provider and for maintenance there is a third party, for
management of materials requirement and provisioning different department are
responsible for fulfilling their needs. Bikano focus on various options related to
inventory management that are keeping touch with the vendors, Production houses
are the major source for resources, working on ERP System etc.
b) Quality Management System
i) Raw Material and Packing Material
Figure no. 3.4 - Work flow of raw material and packaging
Above figure shows the quality management system of raw material and packing
material which starts from information received from store then receiving of sample
from vehicle for analyzing the sample related to ordered product. If the sample did
not meet the standard then sent back. But if the sample meets the standard then its
allowed to unload and finally at the end material transfer to the store.
Information received from store
Receiving of sample from vehicle
Analyses of sample as per defined
Sample meets the standard Sample did not meet the standard
Material allowed to unload
Material transfer to store
Reject and sent back
ii) Process material and shop floor
Figure no.3.5 - Process material and shop floor
Above figure shows the quality management system of Process material and shop
floor which starts from the checking of hygiene condition and pre operational
activities then verification of process and its parameters is done. If the verification of
process is ok then production is continue with quality checking and finally at the end
final packaging is done.
Hygiene condition and pre-operational checkups
Verification of process and process parameters
Correct and rectify or reject
Online sampling of product
Sent for quality checking
iii) Testing of finished goods
Figure no.3.6 - Testing of work flow
There is an implementation of standard methods such as statistical quality control
(SQC), TQM, ISO Certification, SQF 2000, ED7 Certificate, HALAL Certificate,
FSSAI Registered, 10PEPC, EIA Certificate
3.15 International Business
a) System & Process for International business
National requirement for compliance of trade and commerce include supplier, IEC
license, DGFT registration, product labeling as per country requirement. International
requirement for compliance of trade and commerce include buyer, import license,
warehousing, and distribution channel. Role of E- Commerce in compliance include
online banking. Management of international supply chain is based on planning,
coordination, organising, staffing, directing, and timely delivery. Raw material access
Sample withdrawn from dispatch or shop floor
Details enter in logbooks
Packaging and manufacturing details are checked
OK Not OK
Informed to concern for rectification
Continue for organoleptic, chemical and micro test
Ok Not OK
Procedure includes standardization, quality control, and vendor scrutinizing.
Procedures of Payments are done through advance, through telegraphic transfer, and
through letter of credit. Credit terms includes advance, TDP (document against
payment), TDA (document against actualization). Price fixation depends on demand
and supply, geographical distance, targeted market. Measurement of quality is done
as per importing country quality standardization authority. Distribution network at
buyer and supplier level is done in two ways. 1. Primary distribution by road, and
train. 2. Secondary Distribution by sea and by air.
b) Issues & Challenges Related with Operation.
Foreign exchange management is done by fulfilling the FEMA and RBI guidelines.
Foreign exchange volatility depends upon foreign fluctuation plus currency.
Government supports authority like APEDA, FIEO, DGFT. Duty drawback when
government refund to exporters. Importing tariff barriers and exporting tariff barriers
like quota and non-quota. The mode which Bikano follow while entering into
international markets is exporting. There are various risks like monetary receipts,
natural disasters, legal and political which took place during international trade.
The company does not pay dividend to its equity shareholders but instead invest the
profit in further long term expansion of business. Like recently the company started a
new production unit in Rai, Sonipat, Haryana.
b) Capital Structure
The company does not issue debentures but take term loans from the banks (HSBC,
HDFC, STANDARD CHARTERED ). The company right now have equity of Rs.
0.85 crores. The does not pay dividends to their shareholders, Hence all the profits
adds up to retained earnings. Currently the status of retained earnings for the year of
2013-14 is Rs. 94.84 crores, Long Term Loans - Rs. 43.30 crores, Equity - Rs. 0.85
crores, retained earnings - Rs. 94.84 crores. The company saw a change in capital
structure in last one year. The shareholders fund has increased from Rs.70.55 crores
in the year 2012-13 to Rs.95.69 crores in the year 2013-14 due to increased in
retained earnings and the company's long term borrowings too has increased from
Rs.22.14 crores in the year 2012-13 to Rs.43.30 crores in the year 2013-14 mainly
because of the new production unit started in Rai, Sonipat, Haryana.
Company's sources of financing includes Long Term loan from its banks (HSBC,
HDFC, STANDARD CHARTERED ) and other source is Working Capital. Factors
that this company bears in mind while deciding source of financing. The factors
which influence the source of financing of the company include:
i) Interest Cost
ii) Value added services
iii) Maximum funding
Role of cost of capital for financing is that it is used to measure the investment
proposal to choose a project which satisfies return on investment. It is used to design
the market fluctuations and try to achieve the economical capital structure for firm.
d) Working Capital
A year back, company had two production unit at Greater Noida, N.C.R. and
Lawrence Road, New Delhi, but with a new factory at Rai, Haryana, so the
Requirement of working capital has increased. Main components of working capital
are debtors and creditors. Factors influencing the company's working capital
i) Production policies.
ii) Terms of purchase and sales
iii) Market conditions.
The company's operating cycle period is of maximum 10 days at an average. The
company always tries to its operating cycle to maintain the cost of product and to
retain the trust of its creditors, in the following ways:
i) Advanced Technology
ii) Low Credit Period
iii) High Quality of Inventory
iv) Low Holding Cost
e) Cash and Receivables
The company has many types of debtors some of them are exporters, distributors,
Franchise Outlet, Government Institutions (Railways, Canteen store department),
Other Institutions (Future Group, Aditya Birla Group, Reliance Group).
Discount offered to the debtors -
Source :- Schemes chart of BFPL in various states in Annexure I
To decrease the mitigating risk from default of debtors, the company rely on
receiving timely payment as per the following credit period:
i) Exportors : 40 days
ii) Distributors : 0 days
iii) Franchise's Outlets : 5-10 days
iv) Government Institutions : 30 days
v) Other Institutions : 15-20 days
There are two main components of inventory
i) Raw Materials (Oil, Sugar, Besan, Pulses etc.)
ii) Packing Material
Since the inventory items are perishable therefore material cannot be stored for a long
period, Hence inventory are stored for a short period of 5-10 days, failing which there
can be problems in production capacity. The company uses FIFO (first in first out)
method of inventory valuation.
g) Sources of finance
Long term sources of finance of the company includes retained earnings and long
term borrowings from banks and short term sources includes working capital. There
is no cost on retained earnings but the long term loans are affected by interest rate and
that is called interest cost. Change in the sources of funds raised in last one year and
reasons for the same. The shareholders fund has increased from Rs.70.55 crores in the
year 2012-13 to Rs.95.69 crores in the year 2013-14 due to increased in retained
earnings and the company's long term borrowings too has increased from Rs.22.14
crores in the year 2012-13 to Rs.43.30 crores in the year 2013-14 mainly because of
the new production unit started in Rai, Sonipat, Haryana. Usually the company does
not face any such problem while raising funds but in case if debt equity structure
raise, then it is difficult to convince banks to avail loans.
h) Credit Policy
BFPL have majorly 3 types of creditors, namely,
i) Raw Material
ii) Packing Material
iii) Expenses and Maintenance
The company shares very good relationship with old as well as new creditors lasting
for long periods. With timely payments and retaining their trust, the relationship is
strong and effective, and of mutual benefit to both. Usually, BFPL make payments to
raw material creditors within 10 days on an average while within 1 month average to
packing material creditors. If in special cases, creditors are in urgent need, we make
the payment within 2-3 days with a benefit of some discount.
The entire 100% of surplus fund is invested in capital expansion. Any investment is
made in the company only after checking the feasibility on the basis of:
iii) Financial status
Capital budgeting is done on the basis of Pay Back period.
3.2 Data Presentation
3.21 Long Term Borrowings
Year Long Term Borrowings (in crores)
Table No. 3.1 : Long Term Borrowings
Chart No.3.1 : Long Term Borrowings of BFPL
According to the analysis done by the researcher, result says that the long term borrowing
in 2012-13 is 22.14 crores while in 2013-14 is 43.30 crores.
3.22 Shareholder’s Fund
Year Share holders Fund (in crores)
Table No. 3.2 : Shareholder’s Fund
Share holder's fund₹ 0.00
Share holder's FundR
Chart No. 3.2 : Share holders of BFPL
According to the analysis done by the researcher, result says that the shareholder's funds
in 2012-13 is 70.55 crores while in 2013-14 is 95.69 crores.
3.23 Debtors Collection Period
Debtors Debtors Collection Period (in days)
Franchise Outlet 10
Government Institutions 30
Other Institutions 20
Table No. 3.3 : Debtors Collection Period
Exporters Distributors Franchise's outlet Government Institutions
Debtors Collection Period
Chart No. 3.3 : Debtors Collection Period
According to the analysis done by the researcher, result says that the debtors collection
period of Exporters is 0 days, Distributors is 0 day, Franchise outlet is 10 days,
Goernment Institutions is 30 days and Other Institutions is 20 days.
3.24 Creditors Payment Period
Creditors Creditors Payment Period (in days)
Raw Materials 10
Packing Materials 30
Expenses & Maintenance 15
Table No. 3.4 : Creditors Payment Period
Raw Materials Packing Materials Expenses & Maintenance0
Creditors Payment Period
Chart No. 3.4: Creditors Payment Period of BFPL
According to the analysis done by the researcher, result says that the creditors payment
period of Raw materials is 10 days, Packing materials is 30 days and expenses &
maintenance is 15 days.
3.25 Income & Expenditure
Year Income Expenditure
2012-13 350.25 320.37
2013-14 416.75 385.2
Table No. 3.5 : Income & Expenditure
Income & ExpenditureR
Chart No. 3.5 : Income & Expenditure of BFPL
According to the analysis done by the researcher, result says that the income is increasing
from 350.25 (2012-13) to 416.75 (2013-14). On the other hand expenditure is also
increasing from 320.37 (2012-13) to 385.20 (2013-14).
3.26 Capital Structure in 2013-14
Items Amount (in crores)
Long Term Borrowings 43.30
Retained Earnings 94.84
Table No. 3.6 : Capital Structure in 2013-14
Long term Borrowings; ₹43.30
Equity Share Capital; ₹0.85
Retained Earnings; ₹94.84
Capital Structure of B.F.P.L.(2013-14) in crores.
Chart No. 3.6 : Capital Structure of B.F.P.L.(2013-14)
According to the analysis done by the researcher, result says that the capital structure of
2013-14 consists of retained earnings Rs. 94.84 crores, equity Rs. 0.85 crores and long
term borrowings Rs. 43.30 crores.
3.27 Capital Structure in 2012-13
Items Amount (in crores)
Long Term Borrowings 22.14
Retained Earnings 69.70
Table No. 3.7 : Capital Structure in 2012-13
Long Term Borrowings; 22.14₹
Equity Share Capital; ₹0.85
Retained Earnings; ₹69.70
Capital Structure of B.F.P.L.(2012-13) in crores.
Chart No.3.7 : Capital Structure of B.F.P.L.
According to the analysis done by the researcher, result says that the capital structure of
2012-13 consists of retained earnings Rs. 69.70 crores, equity Rs. 0.85 crores and long
term borrowings Rs. 22.14 crores.
Chapter – 4
Functional Analysis of BFPL
4.1 Functional Analysis of BFPL
4.11 Human Resource Management
Human resource management is a management of an organization’s workforce or
human resource. It is responsible for the attraction, selection, training, assessment and
rewarding of employees, while also overseeing organizational leadership and culture.
An organization is focus on HR Planning processes that has been executed once in a
year before starting of the financial year. It helps to manage time and expenses
efficiently in searching human resource in advance.
An organization commits that it shall optimally utilize the existing manpower,
therefore job opportunities shall be communicated to employees through Transfers ,
Promotions , Data base , Referral , Internal job. In case, suitable manpower is not
available internally, the organization shall identify and select the resources from
external sources through various channels such as Job portals, Consultants, Campus,
In an organization, managers need to clear certifications like PMP before holding the
position. Project Management Professional (PMP) is one of the most important
industry recognized certification for project managers. PMP describe the experience,
education and competency to lead and direct projects.
BFPL manages its all HR related information like payroll management, labor and
time management, benefits management etc through Human resource information
Figure no. 4.1- 4P's of BFPL
Bikanervala mostly focus on the concept of 4P's of Marketing during Diwali.
Company’s focus is to attract the customers and to maximize the market share and
profit. They sell their product in attractive packaging decorated with traditional touch
and introduce free schemes and gift hampers to attract the customers for example,
Bikanervala launched many products for the special occasion like Albela sonpapdi,
meetha bandhan (rasgullas), tarang namkeen packs . They have a very efficient
pricing strategy as per the competition prevailing in the market. Bikano Product price
range from 65 to 365 .Prices depends on the type of gift packs like. Uphar Rs 165,
anmol Rs230. Rs.15 extra charges for special boxes. Companies promote their
products through TV advertisements, online shopping and networking sites like
facebook, twitter etc. and they offer various types of discounts and gift hampers for
lunch and dinner on festival days for example, Bikanervala outlets provides discounts
for special occasion. Huge demand for both packed and loose packs items. All the age
group were preferring Bikanervala's brand.
Introduction of the sugar free sweet also added demand from the side of health
conscious consumers. Special packages attracted consumers allot, as it adds value to
BFPL 4P's (during diwali)
Product Place Price Promotion
their lifestyle and brand consciousness. Bikanerwala has high value in the mindset of
customers so, generally consumers preferred purchasing branded gift item like
Bikano. Consumer find it very close difference between Bikanervala and other non-
branded gift items.
As consumer is 100% confident on Bikanervala product they were sure that product is
free from adulteration and infection this also added demand from consumer's side.
The finance department is continuously involved in the activities that are important
for the growth of the company. It is the most important part of the organization as it
manages its money and ensures the smooth functioning of the organization.
a) The company's long term borrowings too has increased from Rs.22.14 crores in
the year 2012-13 to Rs.43.30 crores in the year 2013-14 mainly because of the
new production unit started in Rai, Sonipat, Haryana.
b) To decrease the mitigating risk from default of debtors, the company rely on
receiving timely payment as per the following credit period: Exporters: 40 days,
Distributors : 0 days, Franchise's Outlets : 5-10 days, Government Institutions : 30
days, Other Institutions : 15-20 days. There is no bad debts.
c) The company saw a change in capital structure in last one year. The shareholders
fund has increased from Rs.70.55 crores in the year 2012-13 to Rs.95.69 crores in
the year 2013-14 due to increase in retained earnings and the company's long term
borrowings too has increased from Rs.22.14 crores in the year 2012-13 to
Rs.43.30 crores in the year 2013-14 mainly because of the new production unit
started in Rai, Sonipat, Haryana.
d) The company uses FIFO (first in first out) method for inventory valuation because
it reduce obsolete inventory that is old or outdated inventory and it is not suitable
for sale or use in production process. FIFO also reduce the inflationary impact felt
by the company, as the oldest inventory items are used. Assuming that inflation is
constant, the purchase price of the inventory used in production or that is sold at
retail was lower than the price of inventory most recently purchase.
e) Capital budgeting is done on the basis of Pay Back period because it helps in
identifying projects that provide the fastest return on investment is particularly
important for companies with limited cash that need to recover their money as
quickly as possible. Managers use the payback method to make quick evaluations
of projects with small investment.
4.14 Information Technology enabled Services
ERP system is one of the important part of the planning process of BFPL. Microsoft
Dynamics NAV classic is a name of the ERP system of the BFPL. BFPL’s ERP
system includes outlet, sales, transfer, Manufacturing, Finance, Store manager
planning. Outlet part of the system includes material receipt note, gate entry, return
order etc. Sales part of the system includes sales order, return order, Sales return
report etc. Transfer function of the system defines the entry of the material which is
transfer from the warehouse to the kitchen departments. Manufacturing part of the
system defines information related to the released production order, inventory
summary etc. Finance and store manager planning includes information related to
VAT, cash management, Bill cancellation report, discount report etc.
4.15 Production & Operation
Soan Papdi Procedure
Besan Roasting Process
Figure-No.4.2: Besan Roasting Process in BFPL
Besan Roasting Process starts roasting of besan and then boiling and mixing at a
temperature of 140 celsius for 0-5 hours. After cooling of besan is done is done on a
temperature of 35 celsius.
Boil & Mixing (140 degree celsius for 0.5 hours)
Cooling (35 degree celsius)
Figure-No.4.3: Sugar Syrup Process in BFPLSugar Syrup Process
Add sugar and water then boil and mixing at a temperature of 175 celsius for 10 min.
then the cooling and stretching of sugar after that add roasted besan in to it then
garnishing, testing and packaging will be done.
Sugar + Water
Boil & Mixture (175-180 degree celcius for 10 minutes)
Cooling (75 degree celsius)
Stretching (30 times)
Add Roasted Besan
Again Stretching (42 times)
Put in Tray
Metal Detector Test
Summary & Conclusion
The functional analysis of BFPL helps to know about its internal management which
includes inventory system, strategic system, working culture etc. Following are the
findings which came out from the functional analysis.
5.11 Human Resource Management
a) If there is any vacancy in the organization, BFPL focus firstly for the internal
job posting if in case suitable candidate is not available internally then it goes
for the external sources for filling the vacancies.
b) Project Management Professional (PMP) certificate that describe the
experience, education and competency to lead and direct projects is
compulsory for the managers in the BFPL.
c) BFPL manages its all HR related information like payroll management, labor
and time management, benefits management etc through Human resource
information system (HRIS).
a) BFPL as an organization in market as it is the one of the leading organization
in the food sector. This is one of the major reason on which success of BFPL
depends as Bikanervala has its own strong brand image in India.
b) BFPL change their strategy at the time of Diwali because BFPL provides less
expensive Diwali gift packs as compared to Haldiram that’s why
Bikanervala’s Diwali sales is higher than its competitors.
c) BFPL also do the sensory testing in which BFPL’s own product is been
compared with the rival’s product and necessary steps are taken for its
development. This is the one of major source of product development.
d) BFPL also take feedback from the customers which helps in customization
rather than mass production.
a) BFPL does not issue new equity shares. BFPL does not share its profit in
terms of dividend to their existing shareholders.
b) Long term sources of finance of the company includes retained earnings and
long term borrowings from banks and short term sources includes working
capital this shows that the company have limited sources of fund.
c) BFPL offers primary and secondary schemes to their debtors. These schemes
are set according to the geographical region with different prices. These
schemes helps in maintaining long term relationships with the debtors.
d) Company using one of the easy method of capital budgeting that is payback
period. Payback period ignores concept of time value of money.
5.2 Lesson Learnt
Summer training in BFPL has been a great learning experience. The research
underwent training in different areas such as Finance, Marketing, HRM, Production
& operation, ITeS. I was mainly the member of Finance department. The work
assigned was to make MRN, credit note, bill posting, checking and transferring of
transporter's bills etc. Another part of the job was to understand the financial
decisions of the company.
Following is the brief of activities which researcher has performed at BFPL.
a) Analyzing the market helps to know that BFPL change its marketing strategies
during festival seasons which helps to increase their profit.
b) Understood the 5S practice of BFPL in HRM which means :
i) Seiri - Clearing up
ii) Seiton - Organising
iii) Seiso - Cleaning
iv) Seiketsu - Standardization
v) Shitsuke - Discipline
c) Experiencing the quality standards of BFPL. The BFPL set the testing standard
according to the raw material. If the material is not upto the standard then it will sent
back and if the material is upto the standard then the material added to the inventory.
a) Rapid expansion of the training centers which helps to enhance the employees
skills and knowledge.
b) Need to focus on the better combination of equity and debt which helps to reduce
its dependency on long term borrowings.
c) Launch a series of ad campaign in multiple media to make the masses aware of
the brand and the products and programs offered by BFPL.
d) There is a need of proper quality testing procedure in outlets to increase the
quality and taste of the products.
e) BFPL should introduce more products i.e. increase its product line.
f) The BFPL have limited number of stores in south India and mostly concentrated
in North India.
g) The current schemes structure of BFPL is majorly for distributors. To provide
more benefits to the customer so that the customers will attract towards BFPL.
c) www.economictimes.com/bfpl, downloaded on 2nd august 2014
Schemes chart of BFPL in various states
S.No. Description Applicable States Varient Primary Schemes (in %)
Secondary Schemes (in %)
1 Namkeen Rs. 5 Delhi,Haryana,UttarPradesh,Punjab,Chandigarh
All 6.25 1.44
2 Namkeen Rs. 5 Rajasthan All 10.29 4
3 Namkeen Rs. 5 Maharashtra,MadhyaPradesh,HimachalPradesh,Jammu&Kashmir,Utrakhand,Bihar,Jharkand,Miscelaneous
All 6.25 0
4 Namkeen Rs. 10 Uttar Pradesh,Chandigarh,Rajasthan All 6.25 1.44
5 Namkeen Rs. 10 Punjab,Haryana,HimachalPradesh,Jammu&Kashmir,MadhyaPradesh,Utrakhand,Maharashtra
All 1.96 0.74
6 Namkeen Rs. 10 Delhi,Bihar,Jharkand,Miscelaneous States
All 1.96 2.04
7 Namkeen Rs. 20 All India All 0 2.96
8 Namkeen 200 gms. All India except Rajasthan All 0 3
9 Namkeen 200 gms. Rajasthan All 10.87 5
10 Namkeen 400 gms. All India except Rajasthan All 0 3
11 Namkeen 400 gms. Rajasthan All 11.04 5
12 Namkeen 1 kg. All India except Rajasthan All 0 3
13 Namkeen 1 kg. Rajasthan All 16 3
14 Namkeen 2 kg. Rajasthan All 6.25 0
15 Snacks Rs. 5 All India except Rajasthan All 5 2
16 Snacks Rs. 5 Rajasthan All 10.29 3
17 Snacks Rs. 10 All India All 0 3
18 Sweets All India except Rajasthan All 0 4
19 Sweets Rajasthan SoanPapdi 6.69 2
20 Sweets Rajasthan Except SoanPapdi
Table-No.3.1 : Discount offered to the distributers and retailers