Chapter -1

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.

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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

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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 -

1.31 Vision:-

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.

1.32 Mission:-

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.

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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.

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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

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Managing Director

Director

C.E.O.

A.V.P.

G.M. Factory

A.G.M.

E.V.P.

R & D Salary Finance H.R.M.

Trainer Recruiter

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 -

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Bikano14%

Haldiram18%

Frito Lays33%

Lehar12%

MTR7%

Others16%

Market Share

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

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Haldiram Bikano Lehar Others

Sales (in crores) 150 95 75 40

10

30

50

70

90

110

130

150

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

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During the internship the researcher got the chance to interact with various other

people like

a.) Mr. Mohin Shaili

( Branch Manager , Preet Vihar)

b.) Mr. Akshay

(Assistant Manager)

c.) Mr. Satyakant Pant

(Shift Manager)

d.) Mr. Chandan

(Accounts Head )

1.9 Sources of data collection

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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

b.) Observation

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

a.) Internet

b.) Company booklets etc

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Chapter – 2

SWOT Analysis of Bikanervala Foods Private Limited

2.1Strengths & Weaknesses of BFPL

Strengths Weaknesses

a.) Middle class customers are the

customer base.

b.) Strong distribution network making

the products available in India and

abroad.

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

outlets.

b.) Facing strong competition from the

unorganized sector.

c.) Limited number of stores in south

India and mostly concentrated in

North India.

d.) Less advertisement

e.) High labor turnover and absenteeism.

f.) Schemes given to retailers are not

enough.

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.

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2.2 Opportunities & Threats of BFPL

Opportunities Threats

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 –

African continent

c.) Opportunity for online ordering

system.

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

Lehar, Haldiram.

b.) Increase in the cost of raw materials.

c.) Global economic instability and

recession.

d.) New government regulations and

role of the government.

e.) Increase in number of competitors.

f.) Changes in the customers taste and

preferences.

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.

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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.

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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

expenses.

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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

e.) Selection

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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

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EVP

HR Head

Managers

Team of Executives

Managers

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

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recruitment in BFPL can be done through Job portals, Consultants, Campus,

Advertisements, Newspapers.

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

employees.

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.

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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

organization.

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

past.

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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

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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

ESIC act.

f) Welfare

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

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informal socialization process only celebrations of various festivals are done in the

organization.

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

is followed.

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

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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

Customer

Figure No.3.2 – Order online process

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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.

3.13 Marketing

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

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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.

b) Promotion

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.

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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.

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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.

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Hygiene condition and pre-operational checkups

Verification of process and process parameters

ok Not

Correct and rectify or reject

Continue production

Online sampling of product

Sent for quality checking

Continue production

Final packaging

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

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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.

3.16 Finance

a) Profits

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.

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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.

c) Financing

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.

30

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

requirement.

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

31

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

f) Inventory

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

32

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.

i) Investment

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:

i) Technology

ii) Operation

iii) Financial status

Capital budgeting is done on the basis of Pay Back period.

33

3.2 Data Presentation

3.21 Long Term Borrowings

Year Long Term Borrowings (in crores)

2012-13 22.14

2013-14 43.30

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)

2012-13 70.55

2013-14 95.69

Table No. 3.2 : Shareholder’s Fund

34

Share holder's fund₹ 0.00

₹ 20.00

₹ 40.00

₹ 60.00

₹ 80.00

₹ 100.00

₹ 120.00

2012-13 70.55₹

2013-14 95.69₹

Share holder's FundR

upee

s in

Cro

res

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)

Exporters 40

Distributors 0

Franchise Outlet 10

Government Institutions 30

35

Other Institutions 20

Table No. 3.3 : Debtors Collection Period

Exporters Distributors Franchise's outlet Government Institutions

Other Institutions0

5

10

15

20

25

30

35

40

45

Debtors Collection Period

in d

ays

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

36

Table No. 3.4 : Creditors Payment Period

Raw Materials Packing Materials Expenses & Maintenance0

5

10

15

20

25

30

35

Creditors Payment Period

in d

ays

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

37

Table No. 3.5 : Income & Expenditure

2012-13 2013-140

50

100

150

200

250

300

350

400

450

Income & ExpenditureR

upee

s in

cro

res

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)

Equity 0.85

Long Term Borrowings 43.30

Retained Earnings 94.84

38

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)

Equity 0.85

Long Term Borrowings 22.14

39

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

40

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,

Advertisements.

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

system (HRIS).

4.12 Marketing

41

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

42

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.

4.13 Finance

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.

43

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

44

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.

45

Besan Roasting

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.

46

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)

Laying Pista

Cutting

Put in Tray

Metal Detector Test

Packing

Chapter-5

Summary & Conclusion

5.1 Findings

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).

5.12 Marketing

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.

47

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.

5.13 Finance

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.

48

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.

49

5.3 Suggestions

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.

50

Biblography

Web Links

a) www.bikanervala.com/products

b) www.bikanervala.com/vission&mission

c) www.economictimes.com/bfpl, downloaded on 2nd august 2014

d) www.google.com/bikanervala

51

Annexure I

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

52

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

14.62 2

Table-No.3.1 : Discount offered to the distributers and retailers

53