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Transcript of Havmor Report
An Industrial Visit Report
On
Havmor Ice-cream
Submitted to: - B.W.T.Institute of Business Administration
H.K College Campus
Ahmedabad.
Submitted By
Kavita Rampuria
Roll No: 1101
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PREFACE
Being a BBA student industrial visit forms an essential part of our course. As management is
a science and is universally applicable, it is in all organized efforts be it a business activity or
any other activity. For achieving perfection in the field of management, one must have both
theoretical and practical knowledge. We can acquire theoretical knowledge from books but
practical knowledge can be acquired only through such industrial visits. This visit has been
useful in the sense it has developed our skills in interpreting and analyzing various functions
such as marketing, production, human resource and finance. This report is the part of the
practical study and gives immense knowledge about the working of Havmor Icecream.
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ACKNOWLEDGEMENT
First of all I would like to thank the Almighty God for his everlasting grace and
mercy that guided me throughout my project work.
The materialization of the ideas and views of this project have seen valuable
contribution of numerous friends and academicians in the form of selfless criticism, well
wishers and above all, words of inspiration. The satisfaction and euphoria that accompany the
successful completion of any task would be incomplete without the mention of certain
individuals who have been of constant help, guidance and encouragement in the making of
this project a reality.
I sincerely and respectfully thank Mr.Bhaumik Nayak and Ms.Aunkita Pandey for
their constant guidance throughout the course of the project.
I also express my sincere thanks to my friends for their encouragement and support
throughout my project.
I put forth my respects and regards to my parents, whose presence steered me
through, to the end. Their blessings and moral support were of great inspiration, enabling us
to overcome the greatest odds with greatest ease.
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TABLE OF CONTENTS
CH.NO PARTICULARS PG.NO
PREFACE I
ACKNOWLEDGEMENT II
1 INTRODUCTION TO ORGANIZATION 7
1.1 INTRODUCTION TO HAVMOR 7
1.2 COMPANY PROFILE 8
1.3 HISTORY 10
1.4 MISSION 11
1.5 FUTURE PLANS 12
1.6 ORGANIZATIONAL STRUCTURE 13
2 PRODUCTION MANAGEMENT 15
2.1 MAIN PRODUCTS OF THE COMPANY 16
2.2 RAW MATERIALS USED 17
2.3 PRODUCTION PROCESS 18
2.4 LOCATION OF THE UNIT 20
2.5 TIME KEEPING SYSTEM 20
2.6 INNOVATIONS 21
2.7 PRODUCTION DETAILS 22
2.8 STORES MANAGEMENT 24
2.9 PLANT LAYOUT 24
2.9.1 PROCESS LAYOUT 25
2.9.2 PRODUCT LAYOUT 25
2.9.3 FIXED POSITION LAYOUT 25
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3 PERSONNEL MANAGEMENT 27
3.1 RECRUITMENT, SELECTION AND INDUCTION 28
3.1.1 RECRUITMENT 28
3.1.2 SELECTION 28
3.1.3 INDUCTION 29
3.2 TRAINING AND DEVELOPMENT 30
3.2.1 TRAINING 30
3.2.2 DEVELOPMENT 30
3.3 PROMOTION, DEMOTION AND TRANSFER POLICY 31
3.3.1 PROMOTION 31
3.3.2 DEMOTION 31
3.3.3 TRANSFER 31
3.4 GREIVANCES HANDLING PROCEDURE 32
3.5 PERFORMANCE APPRAISAL 32
3.6 PERSONAL RECORDS 33
3.7 WAGES AND SALARY ADMINISTRATION 33
3.8 TOTAL NUMBER OF EMPLOYEES 34
3.9 PROVIDENT FUND SCHEME 34
3.10 EMPLOYEES BENEFITS AND SERVICES 34
3.11 TRADE UNION 35
4 MARKETING MANAGEMENT 37
4.1 RESPONSIBILITY AND AUTHORITY OF INDIVIDUAL 38
4.2 PRODUCT PLANNING 39
4.3 BRANDNAME ANG LOGO 39
4.4 MARKETING RESEARCH 40
4.5 MARKET SEGMENTATION 40
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4.5.1 BASIS OF FLAVOURS 41
4.5.2 BASIS OF PACKAGING 41
4.5.3 BASIS OF CONSUMER SEGMENT 41
4.6 DISTRIBUTION CHANNEL 42
4.7 PHYSICAL DISTRIBUTION 43
4.7.1 WAREHOUSING 44
4.7.2 INVENTORY 44
4.7.3 ORDER PROCESSING 44
4.8 PACKAGING AND TRANSPORTATION 45
5 SALES DEPARTMENT 47
5.1 SALES ORGANIZATION 48
5.2 SALES BUDGET 48
5.3 PRICING POLICY 49
5.4 CHANNEL OF DISTRIBUTION 49
5.5 ADVERTISING 50
5.6 SALES PROMOTION 51
6 FINANCE MANAGEMENT 53
6.1 FINANCIAL REVIEW 54
6.2 ORGANISATIONAL STRUCTURE 54
6.3 FINANCIAL PLANNING 54
6.4 CAPITALISATION 55
6.4.1 CAPITAL STRUCTURE 56
6.4.2 DEPRICIATION POLICY 57
6.4.3 MANAGEMENT OF WORKING CAPITAL 58
7 SWOT ANALYSIS 60
8 CONCLUSION 62
BIBLIOGRAPHY 64
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CHAPTER-1
INTRODUCTION TO ORGANISATION
1.1 INTRODUCTION TO HAVMOR
Havmor literally meaning H-A-V-E-M-O-R-E, one of the best names for food
business was coined by Late Shri Satish Chandra Chona in 1944.
HAVMOR is a privately owned company manufacturing varieties of ICE CREAMS,
they also run RESTAURANTS and FAST FOOD PALOURS, and they also deal with
CATERING.
Havmor Group of Co. has its humble beginning since 1944, when its founders started
manufacturing ice cream with a hand-cranked machine.
The “Havmor” philosophy of providing its customers with the best quality products
and services at affordable prices has resulted in the brand being a household name in Gujarat.
Havmor has 50% of the Gujarat ice cream market. But that’s no surprise considering
that the group has the largest range of ice creams in the Gujarat in a variety of flavors, packs
and forms. The group has a product matrix comprising of cones, cups, candies, family and
party bricks and bulk packs.
Havmor introduced the concept of “flavor of the month” under which the company
develops and markets one new flavor every month for its customer’s delight.
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1.2 COMPANY PROFILE
Havmor Group of Co.
Factory Address : Modern Industrial Estate,
B/h. Naroda Station,
Naroda Road,
Ahmedabad-380 025
Fax : 91 – 079 – 2220 3890
E-mail : [email protected]
Office Address : 2nd Floor, Kashmira
Chambers,
B/h. Popular House,
Navrangpura,
Ahmedabad-380 009
Fax : 91 – 79-2657 5100
E-mail : [email protected]
Website : www.havmor.com
Main Product : ICE-CREAMS
Land area
of factory : 5000 sq. ft.
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No. of employees : 420
Managing director
of the Company : Mr. Pradeep Chona
President : Mr. Anand khanonkar
Assistant
G.manager : Mr. Dhiren Shah
Purchase manager : Mr. Ajay Mistry
Finance &
Account manager : Mr. Vatsal Parekh
Quality Control : Mr. Sanjay & Miss. Urvi
Stores Management : Mr. S.k. Shetty
H.R.Assistance : Mr. Tejas & Mr. Pramo
Vice President (HR) : Mr. Rajesh Shah
Marketing Dept : Mr. Kamal Desai
Auditors : Mr. Mukesh
Bankers : Corporation Bank
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1.3 HISTORY
Small Beginning, Big Vision, Great Ambitions Havmor Ice Cream began its branded
life in 1944 in Karachi, in undivided India. By 1947, it was a popular local brand there.
But in 1947, in the wake of the Partition, its founder Satish Chona had to join the
exodus into India, with virtually no moveable assets. Searching for a new turf, he tried out
Dehra Dun and Indore, and finally, settled down in Ahmedabad.
No, it was not a case of “Brand Relocation”, or anything else as fanciful. He had to
start the venture from scratch again. In fact, he had to begin from a hand-cart at the
Ahmedabad Railway Station, churning out the Ice Cream manually.
He called this fledgling brand ‘Havmor’ - a neologism for ‘Have More’ - which meant
the customer, got more value for money, and more taste to relish, from his Ice Creams.
Perhaps he didn’t know it then, but he had laid the foundation for one of Western
India’s most enduring market legends and good quality, like good character, wins over the
situation sooner or later.
Today, Havmor Ice Cream is a delicious facet of Western India’s daily life, and part of
its market lore. It reaches hundreds of thousands of consumers through 8 main outlets and
3800 plus dealers.
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1.4 MISSION
“Good, Truthful, Clean” enterprising ethos.
Satish Chona, the founder of Havmor began his enterprise half a century ago with a
sample guideline ACHAI, SACHCHAI, SAFAI (Goodness, Truthfulness, and Cleanliness)
The succeeding generation at the help of company translated this axiom into a way of
life and business only the finest ingredients go into making of Havmor ice-creams. The whole
manufacturing process conforms to global standard of hygiene, and the company’s trade
practices are kept totally transparent.
Base on new generation technology and in house, The Company keeps formulating
new tastes at frequent intervals and surprising its consumers. It has also diversified into other
food items through a high profile restaurant chain.
Today decides later Satish Chonn simple philosophy still continues to be the corporate
axiom of the Havmor conglomerate, and the company values its entrepreneurial self esteem,
market image and reputation for financial up rightness above its pure business interests.
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1.5 FUTURE PLANS
Havmor is adopting a consumer oriented strategy as far as the price factor is
concerned, where in the priority was on passing more and more benefits to ultimate
consumers. All the benefits accruing out of economies of scale were passed to consumers in
the form of value for money offers like “Buy one get one free”.
The overall broad strategy of increasing the consumption was supported by
appropriate promotion and market support. The selection of media and communication
strategy was done with an objective of achieving the broad objective growth by growing the
market.
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1.6 ORGANISATIONAL STRUCTURE
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CHAIRMAN
FACTORYMANAGER
PURCHASEMANAGER
HRDMANAGER
MARKETING MANAGER
ACCOUNTS MANAGER
FINANCE MANAGER
MAINTENANCEMANAGER
QUALITYMANAGER
CONTROLMANAGER
STORAGEMANAGER
DISPATCHMANAGER
MANAGING DIRECTOR
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CHAPTER-2
PRODUCTION MANAGEMENT
Production is the process of transferring components into finished products for sales.
The term production is wide in scope. It includes manufacturing process also by which
raw materials are transferred into finished goods for final consumption. Land, Capital and
Labor organization and entrepreneurship are the factors of production, where as making
include market research, personal selling, sales promotion, advertisement, publicity and all
other activities relating to distribution.
Production refers to a process of fabrication of a product or a physical object through
there are men, material, capital and entrepreneurship for the satisfaction of human wants.
Production department is the heart of Havmor Unit, as the main function of Havmor is
to produce the products and supply to the consumers according to their needs and taste. Thus,
in Havmor production department is the most important department.
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2.1 MAIN PRODUCTS OF THE COMPANY
Ice creams found in different styles like:
King Cones
Big Cups
Small Cups
Party Pack
Family Pack
Juices
Candy
Dolly
Kulfi Corner
Roll cut
Novelties
Cassata
Premium Pack
Kids Special
Havmor Special, etc.
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2.2 RAW MATERIAL USED
There are various types of raw materials that are used in Havmor during Ice Cream
making process. Major Raw Materials used for making Ice Cream are:
Milk
Cream
Skim milk powder
Dry fruits
Fresh fruits
Flavours
Sugar
Stalulizer
Emulsifiers agents
Chocolates
All the materials used in process are managed by Storage Department. And their
quality is checked by Research and Development Department.
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2.3 PRODUCTION PROCESS
PASTEURIZATION TANK:-
Here the raw materials like milk, cream, powder, etc are mixed. Milk is pasteurized
here. Mixing of Pasteurizers is done at 8-10C, Butter is melted at 40C, All ingredients at
55C, Sweetening agent is added at 65C, and pasteurization is done at 75C. The mix is
kept at 75C for 15 mins and then filtration of mix is done.
HOMOGENATOR:-
After being pasteurized at 75C, the mix is transferred to this tank. Here, this mix is
kept under the pressure of 50 cem square. This increases the viscosity of the mix. Here the
breakdown of the fact glucose is done up to micron size. The Homogenator tank is the
heart of the process.
CHILLER:-
In the chiller, the chilling of the mix is done from 75C to 24c.
STORAGE TANK:-
After being thoroughly mixed, the mix is stored in this tank. The mix is stored here is
called the basic mix and is used for all ice creams. The basic mix is taken to each section
for different types of Ice Creams, whether it is cup, candies, cones, etc.
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The general process of cleaning is as follows:
Flushing with tap water.
Cleaning with hot water at 10C for 10 to 15 mins.
Alkali cleaner for 20 mins at 10C.
Flushing with hot water.
Senttice the whole equipment with hardaphire solution of 200 ppm for 20 mins.
FLAVOURING TANK:-
Required quality of basic mix is transferred in Flavouring tank additions of essence
and Flavouring Color is done as per the recipes of particular ice cream.
CONTINUOUS FREEZER:-
After starting the continuous freezer, the ice cream will come out within 25 seconds at
the temperature of 8C to -5C. If the recipes includes additions of nuts it is done through
fruit feeder which is outside the continuous freezer and before the final place of coming
out of the ice cream and in case of Sunday’s different flavor is added through nozzles
through which more than two flavors can be added. After coming out from continuous, the
ice cream is picked into different boxes, cups, etc. This process is done manually.
HARDENING TUNNEL:-
These packets are kept in hardening tunnel to achieve ITC.
COLD STORAGE:-
After achieving ITC in hardening tunnel, ice cream is transferred in to cold storage and
taken as per the market demand.
Yummy Ice Cream is now ready to dispatch.
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2.4 LOCATION OF THE UNIT
The location of plant or industry means to scientific choice of a region or specific sight
in a region where the business unit is to situate. The main object of an industry concern is to
maximize profit through minimization of production and distribution cost. The objectives are
realized only if the firm is located at a place which offers all economies of production and
distribution.
* Factor responsible for plant location are:
1. Money, Material
2. Man power, Market
3. Motive power, Management
4. Machinery, Means of Communication
5. Momentum to an early start
2.5 TIME KEEPING SYSTEM
Time keeping system for industrial staff
Shift Timings
1st shift ~ 8 AM TO 4 PM
2nd shift ~ 4 PM TO 12 Mid Night
3rd shift ~ 12 Mid Night to 7 AM
Working Hours for office staff: 9.30 TO 6.30
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2.6 INNOVATIONS
Quality is undoubtedly very important to establish and retain one’s status in a
competitive environment. But equally important is innovation – constantly coming up with
something new to maintain an edge over the competition. Hence, creativity is at the forefront
of our activities. Most of our innovations have been based on the consumer feedback we have
received from our ardent fans. To please them, to date we have launched over 200 flavors in
600 pack-types and forms. People eagerly await our flavor of the quarter, which has been an
on-going event over the years.
Here is a representative sample of a few of their innovations:
They are the first ones to introduce Dairy Fresh – an all natural ice cream which
contains no additives, no preservatives, no synthetic Colors or flavour. Nothing but the
pure, natural goodness of milk, fruit and nuts.
They launched many dry fruits based ice creams, an assortment of traditional Indian
ice cream form, which otherwise had to be bought just prior to consumption, and that
too from vendors whose quality often left a lot to be desired.
They even introduced the Sorbet – a fruit juice based frozen dessert.
To match their unique products, they have often gone in for unconventional and
creative packaging. Like the time when we filled Mango. Orange, Sitafal, Sweet Lime.
Ice creams in the intact skins of their fruits. It was a big hit at social gatherings and
special occasions.
All their innovations are based on a single guiding principle i.e. “Give the consumer what
he likes and wants, and not what we want him to like?”
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2.7 PRODUCTION DETAILS
Production means to convert the resources or wealth obtained from nature in to
production. Which can satisfies human needs by processing it through manpower or machine,
In short the creation of an object or services making necessary changes in the shape, size,
weight and prospects of the raw materials through process.
There are several sections in the unit, in the sections one by one steps about the
procedure of product can be seen the details about the sections are as follows.
1) MAINTENANCE UNIT:
This is the main unit of the company. The heavy machines are installed here the unit 3
compressor which help in codling the ice-creams. There are generators also because in case of
a power failure, it has to be switched on to keep the product fresh and cold. This unit also
contains the boilers.
2) MANUFACTURING UNIT:
In this plant all the required raw material are mixed and then it is processed the raw
material goes through many Thom formations before it becomes the final product. The actual
processes of making ice-cream starts and after ice-cream are manufacture and they are to the
cold storage.
3) RAW MATERIAL UNIT:
In this unit all the raw material, such as milk powder, dry fruits like kaju, chocolates
etc. are thoroughly inspected and checked and coasted in oven before sending it for flavoring
on essentially.
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4) COLD STORAGE UNIT:
The prepared ice-cream comes to the cold storage through a tunnel pipe. The whole
process is automatic, the temperature in cold storage is between -25c to -27c ice-cream is
taken out of this unit as per the order.
5) ETP UNIT:
ETP means effluent treatment plant there all the waste water is treated thoroughly and
disposed off. The treatment is very much necessary because of the government policy that the
chemical before disposing.
6) LABORATORY:
The laboratory of Havmor takes care of hygiene of the products each and every
product is checked and certified over here before being launched, At most each taken on
aspect of quality.
7) PACKAGING UNIT:
In this section the packaging of the product are done. The manufacturing date and best
before information are labeled over here. Besides it is the store room where the packets are
and used where necessary.
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2.8 STORES MANAGEMENT
Stores management is necessary for any scale of unit because whenever the need arise
it could be provided by the store department.
There is a separation for storage in Havmor. The departments like production, research
and development department are required to inform to the storage department whenever the
need arises and on this basis purchase requisition is made and given to purchase department.
2.9 PLANT LAYOUT
Layout problems are fundamental to every type of organization and are experienced in
all kind of marketing. Housewife must arrange her kitchen; retailer must arrange their
facilities, not only the departments within the factory but also the plant, stores and services so
as to achieve flow of products.
Once a decision about location of a plant has been taken, next important problem
before the management is to plan suitable layout for the plant. Efficiency and performance of
good machines and sturdy buildings depend to a great extent on the layout of the plant.
According to James Handy, “Layout identically involves the allocation of space and
arrangement of equipments in such a manner that overall operating cost is minimized.”
There are mainly 3 types of layout…
1. Process layout or layout by function
2. Product layout or line production
3. Fixed position layout.
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2.9.1 PROCESS LAYOUT :
This is typical job-shop type of production, where the equipment performing similar
operation is grouped together. In this layout more emphasis is given to specialization or
functional homogeneity on the various components of the system. All operations of similar
nature & grouped together in the same department or part of the factory. E.g.; grinding
machine is located in any are, etc.
2.9.2 PRODUCT LAYOUT:
The equipment here is laid out according to the sequence in which it’s used for making
the product for this type of layout if two products are tobe made is called for two separate
layouts.
2.9.3 FIXED POSITION LAYOUT:
In this layout, the material remains in a fixed position, but the machinery tools, workmen, etc.
are brought to the machines.
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CHAPTER-3
PERSONNEL MANAGEMENT
As the term applies, personnel management is the management of human resources in
an organization and is concerned with the creation of harmonious working relationships
among its participants and bringing about this utmost individual development, such
management is concerned with leadership in both groups and “individual relationship” and
“personnel management.” It effectively describes the process of planning and directing the
applicants, development and utilizations of human resources in employment. In fact,
personnel management undertakes all those activities, which are concerned with human
elements in an organization. Whatever functions are listed therein, the main objectives of
these functions are to bring together expertise in a scientific way and to create that motive, a
group to achieve its goals economically, effectively and speedily.
According to Havmor, HRD plays a major role in conducting specialized training
programs, encouraging innovative ideas, inoculating willingness to accept change and
rewarding out this with an incentive package. They believe that their plants are most valuable
assets who have made Havmor what it is today, and it is they who will take them for beyond
the horizon, the days to come.
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3.1 RECRUITMENT, SELECTION & INDUCTION
The recruitment & selection process is intimately connected with overall manpower
system.
It is the primary duty of the personnel department to procure and maintain the adequate
qualified working force of various personnel necessary for running the organization. It is very
important function even for the establishment and development of business.
3.1.1 RECRUITMENT:
Recruitment refers to attempt of getting interested applicants and providing a pool of
prospective employees so that we can select right person for right job. In Havmor the
recruitment sources can be classified into two broad categories.
For recruitment of skilled workers, advertisement is given in newspapers and unskilled
workers are recruited from local areas.
3.1.2 SELECTION:
Selection is the process in which candidates for employment are divided into two
classes – those who are to be offered employment and those who are not.
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The selection process of Havmor Co. is done as under…
* Preliminary Interview.
* Application.
* Interview.
* Final Selection.
Following are the broad headings under which the qualities desirable for a suitable
candidate may be grouped.
* Educational and technical qualifications
* Intelligence
* Responsibility involved and initiative required
* Ability to command, to obey
* Health and physique
* Ability to work in the conditions in which the job is performed.
3.1.3 INDUCTION:
Induction refers to the job and organization. The purpose is to make the employees
feel at home and develop a sense of pride in the organization and commitment to the job.
Induction is a technique by which a new employee is rehabilitated into the changed
surroundings and introduced the practicing policies and purpose of organization.
Induction of employee is done by every department for every week after selecting of 2
to 3 days.
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3.2 TRAINING & DEVELOPMENT
3.2.1TRAINING:
Training is the organized procedure by which people learn knowledge or skill for a
definite purpose.
In this modern era, training is very important. In Havmor Ice-creams, there is also
modern type of machines which follows modern technology. Many workers don’t know to
use them. So, they teach them how to use machineries.
3.2.2 DEVELOPMENT:
Development is an organized and planned process and program of training and growth
by which individual manager or executive at each level of management hierarchy gains and
applies knowledge, skills, insight and attitudes to manage workers and the organizations
effectively.
In Havmor Group of Co. HR coordinates the training. Sometimes staff is send outside the
company for training purpose or experts are called up to give training to the employees.
Company also gives training to their workers according to the job. Generally, training for 7
days is given to workers.
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3.3 PROMOTION DEMOTION & TRANSFER POLICY
3.3.1 PROMOTION:
Promotion is the advancement of an employee to better job – better in terms of
responsibility, more prestige or status, greater skill, higher grade & salary and increased
privileges, etc.
Havmor Co. also gives promotion on the basis of all over performance basis. Company
also considers merit basis and seniority basis. Top level management gives promotion.
3.3.2 DEMOTION:
Demotion has been define as the assignment of an individual to a job of lower rank
and pay usually involving lower level of difficulty and responsibility. In other words,
demotion refers to the lowering down of the status, salary & responsibility of an employee.
Havmor Co. gives demotion when any employee is not able to do his work by any reason.
3.3.3 TRANSFER:
Transfer refers to changes in jobs that involve little or no change in status,
responsibility and pay.
Havmor Co. does transfer to their employee. Employees are transferred from one shift
to another shift, as per the requirement.
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3.4 GRIEVANCES HANDLING PROCEDURE
Grievance is difficult to define, personnel experts however, have attempted to
distinguish dissatisfaction, complaint and grievances. Generally speaking, dissatisfaction to
any staff or filling of discontent, whether it is unexpressed or explicitly expressed. A
dissatisfaction which is orally made known as complaint becomes a grievance when this
dissatisfaction, which is usually related to work is brought to the notice of management.
A complain by an employee and claiming unfair treatment.
In all the companies grievances always exist irrespective of size and unit. In some
employee have complaints against employees. The grievances may be real or imaginary valid
or invalid.
In Havmor, there is specific grievance handling procedure. Whenever, there is any
grievance, the employees meet first to the supervisor and if not solved then employees meet to
the concerning department head and management tries to solve the grievance by considering
the acceptable demand of the employees and the workers also keep themselves ready to
achieve the targets disclaimed by the management.
3.5 PERFORMANCE APPRAISAL
In the organization context performance appraisal is a systematic evaluation of
performance by supervisors or other familiar with their performance. It is also described as
merit rating in which one individual is ranked or market in comparison to others.
Performance Appraisal is a systematic evaluation of the individuals with regard to his/her
performances on the job and his potential for development.
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In Havmor, the performance appraisal is done by the superior or superior will fill the
form, it is done once in a year and accordingly increase in salary is given. Motivation to
workers done once in 2 months.
3.6 PERSONNEL RECORDS
A Personnel record is piece of writing in a chart or which provides ready information
and which preserve evidence for future reference or use.
Havmor Co.’s style of keeping personnel record is very scientific and systematic. The
company keeps one file for each employee. In this file, you can get each & every information
about employee. The information like wages, salary, training & development, recruitment &
selection, pension, provident fund, discipline, past experience, birth date, blood group,
qualifications, behavior of employee in the company, etc. are noted in this file.
3.7 WAGES & SALARY ADMINISTRATION
Wage and salary administration is necessarily the application of a systematic approach
to the problem of ensuring that the employees are paid in a logical, equitable and fair manner.
Its basic purpose is to maintain and establish wage and salary structure. Its secondary
objective is to establish equitable labor cost structure. It is concerned with financial aspects of
needs, motivation and rewards.
Havmor Co. gives wage and salary to the workers according to their work and ability.
In this company, wages and salary are given monthly to the workers. Sometimes, company
gives wages on the basis of contract to the workers.
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Salary to the clerical, administrative and professional employees is paid on the 1st of
every month. In Havmor, till now there is no child labor. The average eages provided to labor
is Rs. 2400 per month.
3.8 TOTAL NUMBER OF EMPLOYEES
The company has total staff strength of 420.
Which includes 200 unskilled workers and 220 skilled?
The company recognizes the important role that its employees used to play the growth of
various business activities.
3.9 PROVIDENT FUND SCHEME
The Provident Fund Act was passed in 1952. A special reserve fund was made for
making the payment to out going members.” The Provident Fund Act 1952 was amended in
1971 to provide for the benefit of family pension to the members of deceased in case of their
death, while in service.
In Havmor Group, company provides provident fund to its employees. The scheme
covers each and every employee of the company. PF @ 12% is given to employees in that
8.33% is pension and 3.67% is PF. It affect instantly to financial condition to each and every
employee. It makes bright future for employees.
3.10 EMPLOYEES BENEFITS & SERVICES
The services or benefits, which are given to the employees more than the salary comes
under employee’s services scheme.
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In Havmor following benefits are provided to the employees:
Uniform.
Safety Facility.
Medical Facility.
Social Welfare.
Canteen Facility.
Employees are also provided previous leave, casual leave, and sick leave. Employees in
Havmor are also provided the benefits like PF, ESI Scheme, etc.
Safety facility is provided to workers as in food items utmost safety is required and
medical check up to the workers is also done as and when required.
3.11 TRADE UNION
The scenario of exploitation of employees by employers led to the birth of unions and
introduced the ear of government regulation and control over employment relationship. Now,
unions are a part of modern industrial societies. There are various explanations about the
place and role of unions. These points to a commonalty through union seek to pursue and
further the interests of employees as a collectively.
“A track union is any combination of persons, whether temporary or permanent,
primary for the purpose of regulating the relations between workers and workers, and for
imposing restrictive conditions on the conduct of any trade or business, and includes the
formation of two or more trade unions.” – Section 2 (B) of Trade Union Act, 1920.
In Havmor, the relation of industry with trade union is good. It generally deals in
collective bargaining for doing negotiations.
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CHAPTER-4
MARKETING DEPARTMENT
Marketing is so basic that it cannot be considered a separate function. Marketing has
been defined in various ways. The definition that serves are purpose by which individuals and
groups obtain what they need and want through creating, offering and exchanging products
or value with others.
* Marketing is a total system of business, an on going process of:
Discovering and translating consumer needs and desires in to products and services.
Creating demand for these products and services.
Serving the consumers demand with the help of marketing channels, and then in turn
Expanding the market even in the face of keen competition.
“Marketing management is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges that satisfy
individual and organizational goals.”
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4.1 RESPONSIBILITY FUNCTIONS & AUTHORITY OF INDIVIDUALS
AT DIFFERENT HIERARCHY LEVELS
GENERAL MANAGER’S RESPONSIBILITY & AUTHORITY
* Sales Administration.
* Advertising and Media.
* Product Management.
* Recruitment and Selection at higher Authority Level.
* Designing Sales Promotional Programs.
RESPONSIBILITIES & AUTHORITY OF SENIOR SALES
MANAGER
* Generate Sales.
* Assigning targets.
* Recruitment.
* Maintaining relationship with Distributors and C&F Agents.
* Assisting in designing of Promotional Programs.
RESPONSIBILITIES & AUTHORITY OF SALES EXECUTIVES &
SALES COORDINATORS
* Appointing Distributors / Dealers.
* Provide Machines.
* Handling Dealer / Distributor Complaints.
* Give the promotional tools to the Dealers & Distributors.
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* Dealer / Distributor Communication.
4.2 PRODUCT PLANNING
Planning is to decide in present, what to do in future? Havmor Co. also develops new
products and steps of product development are as under…
Research for a new product sometimes is based on seasons & market demand.
Planning of product before 3-4 months in advance.
Quality control department check the product quality.
Product management department approves a new product.
Product planning for promotions.
Final label of product.
Commercialization of new product.
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4.3 BRANDNAME AND LOGO
4.4 MARKETING RESEARCH
Marketing research is the systematic collection, design, analysis and reporting of data and
finding relevant to a scientific marketing situation facing the competition. Process and
marketing research followed in Havmor.
Defining the problems and research objectives.
Developing the research plan.
Collecting the information.
Analyzing the information.
Presenting the findings.
Havmor Company does marketing research through his sales staff. Sometimes Havmor
Company appoints marketing intelligent staff for research in different areas.
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4.5 MARKET SEGMENTATION
Market Segmentation is a full larger group having similar wants. Segmentation is
consumer oriented marketing strategy. Market segmentation gives the formal
segmentation to the fact that wants and desires of consumers diverse and we can orient
specific category or the segment of the market, so that supply will have the best
correlation with demand. Varied and complex buyer behavior is the root cause of market
segmentation.
Market consists of buyers and buyers differ in one or more respects. They may differ
in their wants, purchasing power, geographical locations, buying practices. Any of these
variables can be used to segment a market.
The ice cream market is segmented in following three ways:
4.5.1 BASIS OF FLAVORS:
Vanilla, Strawberry, Chocolate, Mango, Butter Scotch, Kesar Pista, etc. Vanilla,
Strawberry and Chocolate together account for about 70% of the market followed by
Butter Scotch and other fruit flavors.
4.5.2 BASIS OF PACKAGING:
1. Cones.
2. Cups.
3. Sticks or Candies.
4. Take away.
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4.5.3 BASIS OF CONSUMER SEGMENT:
On the basis, the market is divided into four segments,
1. Impulse segment.
2. Retail.
3. Institutional / Catering.
4. Parlors.
Retail and impulse together account for 70% of this market.
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4.6 DISTRIBUTION CHANNEL
In the field of marketing, channels of distribution indicates the routes of pathway through
which goods and services flow or move from producers to consumers. The route of channels
of distribution includes the manufacturer and the consumer as well as all intermediaries.
These components are linked in the channel system by one or more of the marketing flows,
such as transfer of title of ownership, physical distribution of merchandise, transfer of title of
ownership, physical distribution of merchandise, transmission of marketing information and
the flow of money in the form of payment of prices and other dues.
The channel of distribution of Havmor is as follows:
Manufacture
C & F Agents
Distributors
Dealers & Retailers
Customers
The above channel strategy defines the channel members. The finished goods first go to
C&F Agent is not available then the finished goods directly go to Distributors.
HO (i.e. Ahmedabad Office) constantly watches the moments the orders given in Dispatch
Department by various C&F Agents and Distributors.
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Havmor has 32 distributors and 4000 retail outlets. The network is kept alive by large flat
of refrigerated vehicles; refrigerated equipments and retail freezers are sources from world
leaders in technology, so as to deliver quality products to the consumers, which is a
commitment at Havmor.
Marketing Department also coordinate with Dispatch Department to get the order from
C&F Agents and Distributors, and try to see the moments of dispatch that orders as early as
possible by clubbing various distributors in one route. And at last dealers get the goods from
the distributors.
4.7 PHYSICAL DISTRIBUTION
The marketing process is not complete simply by creating superb product and by creating
the consumer through aggressive salesmanship. Delivering the product to the consumer at the
right time and right place is equally important function in marketing. In process of marketing,
this vital function is called physical distribution.
Physical distribution means the process of delivering the product to the user or consumer
promptly, safely and in time.
The major components of physical distribution of Havmor:
Warehousing
Inventory
Order processing
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4.7.1 WAREHOUSING:
As ice cream is a perishable product and it must be kept in cool place to maintain its quality
for few days, Havmor has cold storages at different ends. These ends are factories, C&F agents,
Distributors and Dealers. The temperature kept in these storage houses is as low as –25C.
4.7.2 INVENTORY:
For the raw material, Havmor keeps the inventory. The inventory of the packaging
material is kept as low as possible and according to the demand forecasted and growth rate of
the market. Ice cream is product of impulse category that requires proper storage, to keep it in
a proper condition. The production and consumption system also such that, the production is
done through the whole year and main demand is in summer season. So every company has to
store ice cream properly. Company has enough storage facility at their all plants, and all C&F
agents have their own cold storage facility, so they keep the stock as per their requirement i.e.
at the time of promotional scheme period or in summer they maintain high stock, the C&F
agent carry the stock in bulk and they supply the ice cream to distributors or dealers, who also
have proper freezing facilities.
4.7.3 ORDER PROCESSING:
Havmor has defined MOQ (Minimum Order Quantity) for the distributors to make order
to the company. As far as order of the dealers are concerned that is the headache of the
distributors. Here, the job of the Havmor’s sales staff is to assist the distributors is selling the
ice cream. Havmor states their physical distributor’s objective, “getting the right goods to the
right place.” No physical distribution system can simultaneously
maximize customer service and minimize distribution cost. Maximum customer service
implies large inventories, transportation and few warehouses.
The designing distributors system is to study what the customer wants and what
competitors are offering customer, interested in several things such as on time delivery.
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Havmor’s willingness is to meet customer needs, careful handling of merchandise to take
back defective goods and re-supply them quickly and to carry inventory for customer.
4.8 PACKAGING & TRANSPORTATION
4.8.1 PACKAGING:
Ice cream consumers in India are generally children and young people. To attract these
consumers ice cream manufacturers try hard to make their packaging attractive.
Packaging plays a large role in marketing of ice cream products. Many different packing,
sizes and designs can be chosen along with type of packaging material.
Ice cream is marketed in three types of packaging.
The most popular is a cup of 100-150 ml sold @ Rs. 8-15 price range. Ice creams at
this price range are generally brought for immediate consumption. They are available
everywhere from big super market to local retailers.
Bar, sticks and Cones represent another ready-to-eat market and are priced @ Rs. 5
and is very popular with kids and forms major portion of the ice cream sales.
Party pack and Family pack are in much use now a days. These are used for parties
and in restaurants. Though outside attractiveness is not very important but the size of
the pack and handling comfort is important.
4.8.2 TRANSPORTATION:
Ice cream requires very low temperature in terms of -25C, so the Van used for the
transportation is having the chillers. Company is acquiring Van on the contract basis.
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CHAPTER-5
SALES DEPARTMENT
The sales manager is the head of the sales department and he is guided in his policy by
the managing director of the company. Thus, the sales manager must be a man of initiative
and ready to propose new ideas as opportunity comes. He must be active, energetic and
persistent in order to cope up with the work involved which is sales promotion. Exploring
new possibilities of obtaining customers, market and new goods. He must be energetic and
put new life and interest in his sales staff. Sales executive should be a good judge of human
nature, a good mixer and know how to handle men not only his customers but also his
competitors in the market. He must be a good organizer and know the psychology of the
group to whom he serves.
It is true that a sale is the last activity of an organization but it is not the less important
function. The sales executive in additional to being competent the techniques and procedure
of selling the product, is an executive directing the activities of others. He has to co-operate
with the rest of the staff for new products and new uses of the commodity.
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5.1 SALES ORGANISATION
The sales department should co-operate with design department so that the product
designed should meet the exact requirements of the customers and the important factors like
efficiency,sturdity,low cost of maintenance, safety for the operator ,ease of handling and good
luck are to be achieved and the sales department has to co-operate with the production
department to see that the quality is maintain and the rate of production is according to the
schedule with planning department to prepare the sales programmed on which the entire
planning will be based ,with the accounting department to bring the prices down and there by
to increase the turn over and fix selling price. With the accounts dept. to give complete data
and with the personnel dept. to procedure the efficient salesman.
5.2 SALES BUDGET
5.2.1 SALES FORECASTING & DEVISING SALES BUDGET:
As Ice Cream is perishable good and it requires proper freezing to maintain Proper
quality, which is very costly. So sales forecasting is very important to reduce the cost of over
production and maintenance.
Havmor considers following factors for forecasting the Sales:
Observing Market Trends.
Past figures related to consumption pattern.
Deciding the future strategy.
Using the above factors, experts in the sales field use their expertise and give their
opinion for the next year’s sales. Thus, Havmor use Jury of Expert Executive Opinion.
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5.3 PRICING POLICY
A price policy is the standing answer to the firm to recurring problem of pricing. It
provides guidelines to the marketing manager to evolve appropriate pricing decisions. There
are many methods of deciding pricing. It depends on the organization that which method it
wants to adopt.
Policy on pricing relative to costs:
Havmor follows Full Cost / Cost plus pricing. Full Cost pricing, no sale is made at a
price lower than that covering total costs, including the variable costs and allocated fixed
costs.
For Example,
X- Cost of Production
X+Y- Cost of goods sold
X + Y + 6% - Cost of goods sold + distributor’s Margin
X + Y + 6% + (12% to 20%) = MRP – Dealer margin added to above (Consumer Price)
5.4 CHANNEL OF DISTRIBUTION
Every producer seeks to link together the set of marketing intermediaries that best fulfill
the firm’s objectives. This set of marketing is called the channel of distribution.
A distribution system is key of external resources. Normally it takes years to build and it is
not easily arranged. It ranks in importance with key internal resources such as manufacturing,
research, engineering’s and field sales personnel and facilities.
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The channel of distribution of the company has the following way:
Manufacturer
Agents
Dealers
Retailers
Customers
5.5 ADVERTISING
It is defined as any paid form of non-personal presentation and promotion of ideas,
goods and services by identified sponsor. It is impersonal salesmanship for mass selling, a
means of mass communication.
Havmor Company has used many media of advertising such as press media, which
includes newspapers and magazines; outdoors advertising that includes posters, boards and
electric display, multimedia including web site, etc.
Product boreal magazine
They have attended an exhibition in world level and in India more than 50 times.
In product today magazine
Tender world
In industrial express
Machine tools
Local channels
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5.6 SALES PROMOTION
Sales promotion is a vital bridge or a connecting line removing the gap between
personnel selling and advertising the two wings of promotion. The sale of a product has to
be promoted or encouraged through a No. of influences at the point of purchase where
retailers and prospective customer meet face to face. Sales promotion may stimulate boost
consumer denying at the point of sale or improve dealer effectiveness at the retail outlets.
There are various sales promotional tools such as:
Samples, coupons.
Price packs.
Premiums.
Contest.
Free trials, Price off.
Allowance of goods.
Havmor company has done all promotional activities with a view to increase sales of
products and to attract a new customer to company’s product. Company has provided many
offers such as “Buy one- Get one free”, “Buy family pack and get attractive gift free”, etc.
Company has also done dealers promotional activities include cash discount on purchase,
display and advertisement allowances, etc.
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CHAPTER-6
FINANCE MANAGEMENT
Financial Management is an integral part of overall management. It is not totally
dependent area. It draws heavily on related disciplines and fields of study such as economics,
accounting, marketing, production and quantitative methods.
The term “nature” as applied finance refers to its relationships with closely related
fields of economics and objectives. In the early years of its evolution it was treated
synonymously with the raising of funds. Now in addition to it is procurement of funds,
efficient use of resources is universally recognized.
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6.1 FINANCIAL REVIEW
In spite of staff competition, particularly in Ice Cream Industry, Havmor Company’s
TOTAL SALES at the end of the financial year 2006-2007 is Rs. 6167 Lacs earned during
previous year is Rs. 4929.8 Lacs.
Company has earned the Gross Profit of Rs. 404.17 Lacs before depreciation and
financial expenses during the year ended on 31st March 2005 as compared to 424.25 Lacs
earned during the previous year.
Net Profit is Rs. 31.8 Lacs during the year ended on 31 st March, 2005 as compared to
Rs 55.35 Lacs earned during the last year.
6.2 ORGANISATIONAL STRUCTURE
Finance is the foremost requirement of any firm, finance decision constitutes one of
the critical and key decisions of any department. The duty of General Manager is to handle
accounts and overall co-ordination of finance department. All major decisions are taken by
Managing Director. Plans are made by General Manager and it is approved by Managing
Director. Managing Director is responsible for any kind of the result to the Directors of the
Company.
6.3 FINANCIAL PLANNING
Finance is an important function of business. The application of planning to the
function is financial planning. It involves the policies, determination of objectives and
procedure relating to the finance function. Financial planning is an important function of a
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financial manager whether a business is big or small this function has to be performed. It is
necessary to do financial planning for an existing as well as new business.
A financial plan is a statement estimating the amount of capital and determining its
compensation and another important aspect of financial plan is to determine the pattern of
financing.
Before raising finance it is essential to make estimates for long term as well as short tern
financial needs.
Long term financing is generally needed for fixed capital requirement i.e. purchase of
fixed assets.
Short term finance is generally needed for working capital requirement i.e. marketable
securities, debtors, etc.
In Havmor, the financial planning is done for long tern or short term financial
requirements. Financial planning is necessary to reduce the cost of finance and all the long
term and short term finances is raised through family funds and overdrafts. The requirement
of all the long term is also fulfilled through bank as and when needed.
6.4 CAPITALISATION
The term capitalization refers to the process of determining the plans if financing. It
includes not merely the determination of the quantities of finance required for a company but
also the decision about the quality of financing. Capitalization includes following aspects:
Estimating the total amount of capital to be raised.
Determining the types of securities to be issued.
Determining the composition or proportion of the various securities to be issued.
Capitalization comprises of a company’s ownership capital, which includes capital stock
and surplus in whatever form it may appears and borrowed capital which consists of bonds or
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similar evidence of long term debt. In Havmor, the capitalization includes both the aspects i.e.
short term as well as long term.
6.4.1 CAPITAL STRUCTURE
In order to run and manage a Company, funds are needed right from the promotional
stage up to end. Finance plays an important role in company’s life. If funds are inadequate,
business sufers. It is therefore necessary that correct estimate of current and the future need of
capital be made to have an optimum capital structure, which shall help the organization to run
its work smoothly and without any stress. Estimation of capital requirements is necessary, but
the formation of capital structure is important.
The capital structure is made up of debt and equity securities and refers to permanent
financing of a firm. It is composed of long term debts, preference share capital, and
shareholders fund.
Capital structure of Havmor as on 31.03.2010
Particulars Amt (Lacs)
Share Capital 359.5
Reserves and Surplus 980.5
Secured Loans 1525
Unsecured Loans 383.5
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6.4.2 DEPRECIATION POLICY
Depreciation is an expense item. It is charged on fixed assets. Fixed assets are those
which are of material value, meant for resale and having fairly long life and are used in the
business.
Methods of depreciation are as follows:
Straight line method.
Diminishing balance method.
Annuity method.
Depreciation fund method.
Insurance policy method.
Depletion method.
Machine hour rate method.
In Havmor depreciation is on Fixed Assets is provided on Straight Line Method.
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6.4.3 MANGAMENT OF WORKING CAPITAL
Capital required for a business can be classified under two main categories.
1. Fixed Capital.
2. Working Capital.
The concept of working capital is further divided into two broad parts they are…
Gross Working Capital.
Net Working Capital.
Gross Working Capital =Total Current Assets
Total Current Assets= 2702.4(Rs in Lacs)
Total Current Liabilities= 1097.7 (Rs. In Lacs)
Net Working Capital= Current Assets – Total Current Liabilities
= 2702.4 – 1097.7 (Rs. In Lacs)
= 1604.7 Lacs
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CHAPTER-7
SWOT ANALYSIS
STRENGTHS
Strong market in Gujarat.
No. 2 in Gujarat
Varieties of Ice Creams
Experience of more than 60 years
WEAKNESS
Less use of advertising medium
Lack of Professionalism
Prices are somewhat high as compared to Amul.
OPPORTUNITIES
Ability to increase production due to installation of new technology
To sell their Ice Creams in other states
THREATS
Increasing number of competitors
Increasing demand of Amul
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CHAPTER-8
CONCLUSION
After visiting Havmor, it seems that Ice Cream is the King of Gujarat. I felt glad of
being a part of it. The visit to such a huge and reputed industry has improved my practical
knowledge of working in industry and its various departments.
Havmor is an industry that is very well equipped by the latest technology and efficient
human resource.
After studying the marketing strategy of the Havmor, I conclude that they are horse for
their competitors and progressing towards success though it has two strong competitors in
Gujarat, but it has already planned to give them a tough challenge in the year to come.
It is difficult to comment right now; weather Havmor will be able to make their
success inroads but its new innovative marketing strategy have given a tough challenge to its
competitors. I hereby wish them luck for the future.
I conclude that the work of preparation project report is glared with co-operation,
unity and team work. Once more I am very thankful to the management of Havmor Food Pvt.
Ltd., for making our report both beautiful & comfortable.
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BIBLIOGRAPHY
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Sr No. Title of the book Author Publication
1. Personnel management C.B. MemorialHimalaya Publishing
House
2.King’s marketing mgt.
[2nd Edition]
M.M.Varma &
R.K. Aqarwal
King book Educational
Publishers’
3.Financial mgt.
[3rd Edition]
M.Y. Khan &
P.K. Jain
Tata McGraw Hill
Publishing co. ltd.
4.Business organization
& managementM.C. Shukla S. Chand & Company
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