Heinz India

Akanksha Kanojia 32219Rolika Sharma 32243

As the trusted leader in nutrition and wellness, Heinz - the original Pure Food Company - is dedicated to the sustainable health of the people, the planet and our Company

Mission statement of the company

Values at Heinz• Passion To be passionate about winning and about our

brands, products and people, thereby delivering superior value to our shareholders

• Risk Tolerance To create a culture where entrepreneurship and prudent risk taking are encouraged and rewarded

• Excellence To be the best in quality and in everything we do

• Motivation To celebrate success, recognizing and rewarding the achievements of individuals and teams

• Innovation To innovate in everything, from products to processes

• Empowerment To empower our talented people to take the initiative and to do what’s right

• Respect To act with integrity and respect towards all

About the company

• Started in the year 1994 by taking over the Family Product Division of Glaxo.

• Head office is at Mumbai.

• Branches in Mumbai, Delhi, Chennai and Kolkata

• Factories at Aligarh and Bangalore.

• Six co-packers who pack /manufacture our products based on our recipe, under our Technical & Quality Assurance supervision.

• A Dedicated work force of 860 direct employees ; about 390 Management staff and 470 Non-Management staff

About the company

• It is one of the fastest growing FMCG• Product :

– Heinz Tomato Ketchup– Heinz Kitchen Klassics– Glucon D– Complan– Nycil– Sampriti

• Zero debt company• CEO of Heinz India is Mr.Thiruambalam • VP HR is Mr.Mohan

Platinum Jubilee1933 – 2008

World-Wide offices

• It has office in the following countries:– ASIA - People's Republic of China, India, Indonesia,

Philippines, Hong Kong, Japan, South Korea, Thailand, Republic of Singapore

– Europe - Ireland, Italy, Greece, The Netherlands, Belgium , Germany, France

– South America – Venezuela, Costa Rica– Africa - Botswana, Zimbabwe, South Africa– Australia and New Zeeland– Canada

Areas of business- ManufacturingMANUFACTURING - FASTER, BETTER, CHEAPER• Dr Pardeep K Batra, VP-Operations• Approx 50 years of ‘bonding’ with 80000 milk shed farmersQuality Systems aligned to • H J Heinz quality policy• ISO 9001:2000 quality management system• Quality Risk Management Process (QRMP)Compliance & Adherence Monitoring Tools• Periodic Internal audits• Periodic External Audits• Regulatory Inspections• Global Audits• System Compliance Audits

Manufacturing capacity

ALIGARHMILK PROCESSING 1,00,000 TONSGHEE MANUFACTURING 7000 TONSCOMPLAN BLENDING 15000 TONSCOMPLAN PACKING 12000 TONSGLUCON –D 3000 TONSHEINZ TOMATO KETCHUP 7200 TONS

Purchases/Procurement• 94% of raw materials agri based; availability and price remain highly volatile due to– High dependence on under-developed agriculture (yields, practices, markets…)– Effects of changes in climate , cropping pattern (cash crops)– Government control (MSP, EXIM policy)

• Demand is outstripping Supply in a country as large as India with rising population and income levels.

• All procurement is local except for some DMH, Tomato paste, HTK lug caps & Apocarotenal (Total value of imports is about Rs 200MM (US$ 5 MM)

• Very high import tariffs (30% on agri items, 20% on DMH clubbed with strong $ makes imports unviable.

• Weak supplier base in many categories (glass: monopoly vendor, plastics – Reliance, Printing, DMH, ……)

R & D• Complete Technical Infrastructure– Specialist/experts in categories– Facilities in house supplemented by best externally– Network- Leading Scientists, Authorities and Institution– Linked to Global Innovation

• Strong track record– Products– Ideas– Business support – Marketing, Legal

• And Integration with Sales team

Finance – Area of businessControlling and reporting• Monthly reporting of actual financials to WHQ• Compilation of Indian financials and liaison with the statutory auditors for audit • Interface with Heinz Italia/Europe for all reporting requirements as their subsidiary• Custodian of company fixed assets• Compliance to Heinz Financial policy and other accounting pronouncementsPlanning and reporting• Compilation of monthly forecasts based on inputs received from Sales, Marketing

& Supply Chain – upload of reports to WHQ• Analysis of actual spends – comparison of variances – identifying gaps and

following up on corrective actions taken• Preparation of Annual budget – setting of standards for the year – inputs from R &

D on new products • SKU control including gross margins for new products/line extensions

HR – Area of businessGuiding principles• People are our greatest asset- both tangible and intangible

• Leverage the Talent Advantage

• Transformative growth requires transformative mindset

• An open, empowered mind delivers outstanding results

• Listen to People and they will listen to you

• Age Group : 62% of Employees are between 20 to 35 yrs age group.

• Average Age : 34 Years

• Feb 2009 head count is 416 Management staff against 372 in Jan.2008Innovate to attract and retain talent (Target 96% occupancy)• Unique Talent Management Processes involving ‘larger leadership’ with added focus for development

& growth interventions for Probable High Potentials and Vital Contributors

• Leverage ‘most localized global company’ & “ Leadership from within” stature.

• Innovative and differentiated C&B (local RSI) and People Policies

• Fun at work – a “serious agenda”

• Develop Line Managers as People Managers to take ownership of his/her people’s interest

• Focus on building a robust two way PMD

Market Analysis Complan fastest growing brand in milk food energy category,

even with 45% price premium Glucon-d user base of 40 million users in India Nycil, pan India consumer franchise of 16 million users Glucon-d market share 70% in India Nycil share of 40% in the prickly heat powder segment Complan market share of 14% in India Growth of 40% in last quarter Target to become a 1000 crore company by 2011 and 2500

crore by 2013 being an 800 crore brand currently

Press releases / News results• 1st September 2009 - Heinz India forayed in the ready-to-eat (RTE) Indian

maincourse food category with the launch of a new range of four Ready To Eat Meals. The range includes Amritsari chole, Awadhi dal fry etc. under the brand name, Heinz Kitchen Klassics

• It wants its prickly heat powder to be taxed at 8 per cent, as supplies to drugs and medicines, rather than 20 per cent, as demanded by the state government under the Kerala General Sales Tax Act, 1963

• Glucon-d has been voted the most trusted cold beverage in India • 2nd most trusted beverage brand • New product - breakfast cereals under the brand Complan

CSR

CSR• HNFI - Heinz Nutrition foundation India was founded in 1997 as a non

profit trust to advance the knowledge and practice of nutrition• Based on such a mission ‘The Foundation’ functions as follows:

a) Spreading latest information by way of a Newsletterb) Undertaking the funding of small but seminal research projects c) Facilitating and promoting nutrition education and awareness by taking part in and or conducting nutrition conferences

Culture / HR policies

• People development interventions: Cover 75% of Management staff with atleast 10% getting ‘international exposure

• Innovative and differentiated C&B (local RSI) and People Policies

• Engagement survey- Ranked No. 2 as most admired Food & Beverages company; strong leadership and high people focus

• Age Group : 62% of our Employees are between 20 to 35 yrs age group

• One Team One Dream campaign

HR – People practices

• Strong Performance Management Process

• Cross Functional Exposure

• Early Responsibility

• Global Interface (frequent interaction with global teams)

• Rewards and Recognition

• Work life balance

• Fun at Work activities

• Flat organization

• Focus on employee development

Talent banding Objective : • To identify our talent profile and lay down appropriate development, retention

and recognition interventions for specific individuals

Methodology :• Feedback from Functional Heads on the basis of the ‘Performance – Potential

Matrix’

Scope : • All Executive and Managerial associates• Top 5% of Distributor/Outsourced Sales personnel and Workmen

Deliverables :• Growth plans for High Performers & Vital Contributors (select)• Opportunities to expand roles and take up challenging projects• Structured learning through in-Company projects/assignments • Nomination to high-value Training Programmes conducted by premier B-

schools• Training/Deputation opportunities with Heinz Affiliates worldwide

Summer internship• Selection : Interviews for campus recruitment• Functions : Sales & Marketing, HR, Finance, Supply Chain and Operations

Management

• Projects in Mumbai HO / Branch Offices / Non-metro towns / Factory in Aligarh, UP

• Real time projects guided by Mentors from respective functions• Project presentations to functional heads

Challenges• Today's business environment is particularly challenging and the

endeavor of Heinz is to become an even sharper, quicker, and more nimble global food company. Their opportunities and challenges include

– A requirement to develop more innovative products to satisfy changing eating trends;

– Utilizing their global reach to serve and satisfy global consumers and customers;

– The need to satisfy consumers desires for high-quality, great tasting, nutritious foods that are quicker and easier to prepare

– To make people their most productive and valuable asset

– To identify and enter new markets

THANK YOU