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INTRODUCTION

SUPPLY CHAIN MANAGEMENT (SCM)

A supply chain is a network of facilities and distribution options that performs thefunctions of procurement of materials, transformation of these materials into intermediate

and finished products, and the distribution of these finished products to customers.

Supply chains exist in both service and manufacturing organizations, although the

complexity of the chain may vary greatly from industry to industry and firm to firm.

Supply chain management is typically viewed to lie between fully vertically integrated

firms, where the entire material flow is owned by a single firm and those where each

channel member operates independently. Therefore coordination between the various

players in the chain is key in its effective management. Cooper and Ellram [1993]

compare supply chain management to a well-balanced and well-practiced relay team.

Such a team is more competitive when each player knows how to be positioned for the

hand-off. The relationships are the strongest between players who directly pass the baton

(stick), but the entire team needs to make a coordinated effort to win the race.

To simplify the concept, supply chain management can be defined as a loop: it starts with

the customer and ends with the customer. All materials, finished products, information,

and even all transactions flow through the loop. However, supply chain management can

be a very difficult task becausein the reality, the supply chain is a complex and dynamic

network of facilities and organizations with different, conflicting objectives.

DEFINITIONS

Supply Chain Management (SCM) is the process of planning, implementing, and

controlling the operations of the supply chain with the purpose to satisfy customer

requirements as efficiently as possible. Supply chain management spans all movement

and storage of raw materials, work-in-process inventory, and finished goods from point-

of-origin to point-of-consumption.

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NEED OF THE STUDY

Traditionally, marketing, distribution, planning, manufacturing, and the purchasingorganizations along the supply chain operated independently. These organizations have

their own objectives and these are often conflicting. Marketing's objective of high

customer service and maximum sales dollars conflict with manufacturing and distribution

goals. Many manufacturing operations are designed to maximize throughput and lower

costs with little consideration for the impact on inventory levels and distribution

capabilities. Purchasing contracts are often negotiated with very little information beyond

historical buying patterns.

The result of these factors is that there is not a single, integrated plan for the

organization---there were as many plans as businesses. Clearly, there is a need for a

mechanism through which these different functions can be integrated together. Supply

chain management is a strategy through which such integration can be achieved.

In addition to cost reduction, the supply chain management approach also facilitates

customer service improvements. It enables the management of:

inventories,

transportation systems and

whole distribution networks

so that organizations are able to meet or even exceed their customers' expectations.

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SCOPE OF THE STUDY:

The study was conducted to know the market position in supply process of planning,

implementing, and controlling the operations of the supply chain with the purpose to

satisfy customer requirements as efficiently as possible at ITC Ltd. The main focus was

to know the needs to make a product or service and deliver it to customers.

OBJECTIVES

This chapter is going to deal with the objectives and methodology used for the

study. This part provides the information of which methodology has been used for thestudy and what are its main objectives to study the supply chain analysis with respect to

selected ABD Nuts, Spices& Chilies.

To provide the conceptual frame work on supply chain analysis.

The result of these factors is that there is not a single, integrated plan for the

organization.

To study the supply chain operations and to understand the operations at ITC Ltd.

To analyze the supply trends with market of selected ABD Nuts, Spices& Chilies.

To offer the findings and suggestions based on the present study period.

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METHODOLOGY

Data sources

Data collection method

Sample size

Sample unit

Data Source

Primary data:

Primary data, by contrast, is collected by the investigator conducting the research.

Secondary data:

The sources for the data collection for the present study are purely of secondary sources

like books and websites.

Data Collection method

The secondary data which is needed for the present study period is secondary data.

Sample size

Sample Unit

Data Analysis:

The data has been analyzed using the following:

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Specific valuation ratios

Key financial ratios

DuPont model for Fundamental analysis and for Technical analysis Moving

Average is applied as a statistical tool.

Specific valuation ratios:

These ratios are used by the banks for specific purpose unlike other companies.

Such as credit deposit ratio, cash deposit ratio, investment deposit ratio

Key financial ratios:

These ratios are used by banks to evaluate the financial results of the banks unlike other

companies.

DuPont Analysis:

The DuPont Model is a technique that can be used to analyze the profitability

of a company using traditional performance management tools. To enable this, the

DuPont model integrates elements of the Income Statement with those of the Balance

Sheet.

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LIMITATIONS OF THE STUDY

The study is confined to only ABD Nuts, Spices& Chilies, which are limited for

coming to conclusion regarding the performance of whole spices industry.

The study is limited by time and cost factors.

The study is analyzed on the limitation of values availability.

The study is also limited to the dates taken as the sample and the values that stand

on that date.

The study period may not be in detailed or full-fledged in all aspects.

The data taken into account is limited on the time and availability

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INDUSTRY PROFILE

HISTORYAND EVOLUTION OF ITC Ltd:

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco

Company of India Limited. As the Company's ownership progressively Indianised, the

name of the Company was changed from Imperial Tobacco Company of India Limited to

India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In

recognition of the Company's multi-business portfolio encompassing a wide range of

businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging,

Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education &

Stationery and Personal Care - the full stops in the Company's name were removed

effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.

The Companys beginnings were humble. A leased office on Radha Bazar Lane,

Kolkata, was the centre of the Company's existence. The Company celebrated its 16th

birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee,

(now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the

Company was historic in more ways than one. It was to mark the beginning of a long and

eventful journey into India's future. The Company's headquarter building, 'Virginia

House', which came up on that plot of land two years later, would go on to become one of

Kolkata's most venerated landmarks.

Though the first six decades of the Company's existence were primarily devoted to

the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the

Seventies witnessed the beginnings of a corporate transformation that would usher in

momentous changes in the life of the Company.

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ITC's Packaging & Printing Business was set up in 1925 as a strategic backward

integration for ITC's Cigarettes business. It is today India's most sophisticated packaging

house.

In 1975 the Company launched its Hotels business with the acquisition of a hotel

in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of

ITC's entry into the hotels business was rooted in the concept of creating value for the

nation. ITC chose the hotels business for its potential to earn high levels of foreign

exchange, create tourism infrastructure and generate large scale direct and indirect

employment. Since then ITC's Hotels business has grown to occupy a position of

leadership, with over 100 owned and managed properties spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India. Bhadrachalam

Paperboards amalgamated with the Company effective March 13, 2002 and became a

Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this

division merged with the Company's Tribeni Tissues Division to form the Paperboards &

Specialty Papers Division. ITC's paperboards' technology, productivity, quality and

manufacturing processes are comparable to the best in the world. It has also made an

immense contribution to the development of Sarapaka, an economically backward area in

the state of Andhra Pradesh. It is directly involved in education, environmental protection

and community development. In 2004, ITC acquired the paperboard manufacturing

facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.

The Kovai Unit allows ITC to improve customer service with reduced lead time and a

wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British

joint venture. Since inception, its shares have been held by ITC, British American

Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco

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became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private

Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing

company and a major supplier of tissue paper to the cigarette industry. The merged entity

was named the Tribeni Tissues Division (TTD). To harness strategic and operational

synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the

Paperboards & Specialty Papers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri

Business Division for export of agri-commodities. The Division is today one of India's

largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began

in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over

4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in

August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now

operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business

with the launch of Expressions range of greeting cards. A line of premium range of

notebooks under brand Paperkraft was launched in 2002. To augment its offering and

to reach a wider student population, the popular range of notebooks was launched under

brand Classmate in 2003. Classmate over the years has grown to become Indias

largest notebook brand and has also increased its portfolio to occupy a greater share of

the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books,

Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC

repositioned the business as the Education and Stationery Products Business and

launched India's first environment friendly premium business paper under the

Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive

stationery and office consumables segment. Paperkraft entered new categories in the

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office consumable segment with the launch of Textliners, Permanent Ink Markers and

White Board Markers in 2009.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of

international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain

of exclusive stores later expanded its range to include Wills Classic formal wear (2002)

and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular

segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle

became title partner of the country's most premier fashion event - Wills Lifestyle India

Fashion Week - that has gained recognition from buyers and retailers as the single largest

B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a

special 'Celebration Series', taking the event forward to consumers.

In 2000, ITC spun off its information technology business into a wholly owned

subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging

opportunities in this area. Today ITC Infotech is one of Indias fastest growing global IT

and IT-enabled services companies and has established itself as a key player in offshore

outsourcing, providing outsourced IT solutions and services to leading global customers

across key focus verticals - Manufacturing, BFSI (Banking, Financial Services &

Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality

and Transportation) and Media & Entertainment.

ITC's foray into the Foods business is an outstanding example of successfully

blending multiple internal competencies to create a new driver of business growth. It began

in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet

dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the

brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003

witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's

entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the

Foods business has grown to a significant size with over 200 differentiated products under

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six distinctive brands, with an enviable distribution reach, a rapidly growing market share

and a solid market standing.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the

entire value chain found yet another expression in the Safety Matches initiative. ITC now

markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim

Metro.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the

manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands

include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet,

Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath &

body care products for men and women in July 2005. Inizio, the signature range under

Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men

(Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing

world class products to Indian consumers the Company launched 'Fiama Di Wills', a

premium range of Shampoos, Shower Gels and Soaps in September, October and

December 2007 respectively. The Company also launched the 'Superia' range of Soaps

and Shampoos in the mass-market segment at select markets in October 2007 and Vivel

De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

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Board of Directors

C H A I R M A N

Y C Deveshwar

E X E C U T I V E D I R E C T O R S

Nakul Anand P V Dhobale K N Grant

N O N - E X E C U T I V E D I R E C T O R S

A Baijal S Banerjee AV Girija Kumar

S H Khan S B Mathur D K Mehrotra

H G Powell P B Ramanujam Anthony Ruys

Basudeb Sen K VaidyanathB Vijayaraghavan

P V D H O B A L E

P. V. Dhobale (56) was appointed a Director on the Board of ITC

effective January 3, 2011. He holds responsibility for Paperboards

& Specialty Papers and Packaging businesses of ITC and also

represents the Finance and IT functions on the Board. A Chemical

Engineer from IIT, Mumbai, he joined the erstwhile ITC

Bhadrachalam Paperboards Limited (ITC Bhadrachalam) as a Management Trainee in
http://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#ycdhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#nahttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#pdhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#knghttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#abhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#sbhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#avgkhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#shkhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#sbmhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#dkmhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#hgphttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#pbrhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#arhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#bshttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#kvhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#bvhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#nahttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#pdhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#knghttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#abhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#sbhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#avgkhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#shkhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#sbmhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#dkmhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#hgphttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#pbrhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#arhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#bshttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#kvhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#bvhttp://www.itcportal.com/about-itc/itc-leadership/board-of-directors.aspx#ycd

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1977 and became its Managing Director in 2000. Following the amalgamation of ITC

Bhadrachalam with ITC in March 2002, and subsequent merger of Bhadrachalam

Paperboards Division with Tribeni Tissues Division, Dhobale took charge of the

Paperboards & Specialty Papers Business as its Divisional Chief Executive.

Dhobale is credited with the successful turnaround of ITC Bhadrachalam in 2001, and

exponential growth thereafter. He spearheaded the growth involving capital infusion of

over US$ 500 million through brownfield organic growth as well as acquisitions. Under

his leadership, ITCs Bhadrachalam Mill has emerged as the largest single-location paper

mill in the country producing more than 400,000 tonnes of papers & boards. Under hisstewardship, and in line with ITCs sustainability strategy, 110,000 hectares of

plantations were developed, the pioneering ECF and Ozone Bleaching Technology were

introduced, ITC became a member of the Global Forest and Trade Network and

successfully implemented a number of Clean Development Mechanism Projects.

Dhobale is an active member of several industry bodies. He is the past President of Indian Paper

Manufacturers Association, past Chairman of the Andhra Pradesh State Council of Confederation

of Indian Industry (CII), and Chairman, Energy Efficiency Council of CII - Sohrabji Godrej

Green Business Centre, Hyderabad. Dhobale is also the Founder President of Indian School of

Business - Centre for Executive Education Alumni Association, Hyderabad Chapter. Amongst

others, he is a Member of the Development Council for Pulp, Paper & Allied Industries, the

Council of Association of Central Pulp & Paper Research Institute, and the World Wide Fund for

Nature (India) - A.P. State Committee.

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k u r u s h n g r a n t

Kurush N Grant (54) was appointed a Director on the Board of ITC

on March 20, 2010. He oversees ITC's FMCG businesses -

Cigarettes, Foods, Personal Care, Lifestyle Retailing, Education

and Stationery Products, Matches and Agarbattis. After completing

his MBA in 1979, he worked with DCM as a Management Trainee

before joining ITC in 1980 in the Marketing function. During his tenure in the Company,

he has handled a wide range of responsibilities in Sales, Brand Management and Product

Development. He was Executive Vice President, Marketing of the Tobacco Division

before becoming Divisional Chief Executive in 1999.

He has been involved in the incubation and development of ITC's new initiatives in the FMCG

sector. He is a Director on the Boards of King Maker Marketing Inc., USA and Surya Nepal

Private Limited, Nepal. He is also the Non Executive Chairman of Wimco Ltd. He is the

immediate past Chairman, CII Eastern Region, and is also a Member of the Executive Committee

of the Indian Chamber of Commerce. He is the Vice Chairman of the Indian Society of

Advertisers. He has been a past Chairman of the National Readership Studies Council, as well as

the Audit Bureau of Circulations, India.

The ITC Vision & Mission

Sustain ITC's position as one of

India's most valuable

corporations

through world class

performance,

creating growing value for the

To enhance the wealth

generating

capability of the enterprise in a

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Indian

economy and the Companys

stakeholders

globalising environment,

delivering superior and

sustainable

stakeholder value

Core Values

ITC's Core Values are aimed at developing a customer-focused, high-performance

organisation which creates value for all its stakeholders:

Trusteeship

As professional managers, we are conscious that ITC has been given to us in "trust" by all

our stakeholders. We will actualise stakeholder value and interest on a long term

sustainable basis.

Customer Focus

We are always customer focused and will deliver what the customer needs in terms of

value, quality and satisfaction.

Respect For People

We are result oriented, setting high performance standards for ourselves as individuals

and teams.

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We will simultaneously respect and value people and uphold humanness and human

dignity.

We acknowledge that every individual brings different perspectives and capabilities to

the team and that a strong team is founded on a variety of perspectives.

We want individuals to dream, value differences, create and experiment in pursuit of

opportunities and achieve leadership through teamwork.

Excellence

We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation

We will constantly pursue newer and better processes, products, services and

management practices.

Nation Orientation

We are aware of our responsibility to generate economic value for the Nation. In pursuit

of our goals, we will make no compromise in complying with applicable laws and

regulations at all levels.

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ITC SPICES

With its trading operations based at Mumbai, ITC-ABD has a procurement

network covering Kerala, Gujarat, Maharashtra and Rajasthan. The products are packed

in Jute bags, Polypropylene bags and Paper bags according to the buyers requirements.

The specialty of the division lies in its ability to offer products according to the buyer's

specification, and packaged specifically to suit his requirements. The Spices business

offers a wide assortment of varieties under each product.

History: ABD Nuts & Spices

The division combines people with vast experience in agri-trading with the ITC

Groups credibility to justify its standing in the trading arena. The division was set up in

1989 and since then has handled a wide range of products - such as Sesame Seeds, HPSGroundnuts, Castor Oil, Spices, and Processed Foods etc. Total volume handled is in

excess of 1, 20,000 mts, and the division has established its presence as a reliable and

competitive supplier in the Mediterranean countries, USA, Europe, Far East etc.

Perspectives: ABD Nuts & Spices

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The success of a division depends on the team, their operational logistics, their

positioning in the market and their productivity levels. The Nuts & Spices division has

set certain standards by which it benchmarks its products:

Quality Control - This comes from strict quality focus at every stage, from

procurement to processing and export. ABD has a presence both at the

farm/produce marketing yard level as well as the processing stage. Quality is

ensured through both an ABD representative and an independent quality surveyor.

Business Contacts - Loyalty and a strong relationship in business is built out of

years of experience in a particular industry. ITC-ABD's expertise in the business

and its contacts with Agents\Brokers, Suppliers, Markets etc., has made the supply

chain process effective. It also instils faith in the buyers and makes them come

back to ITC, time and again.

Operational Efficiency - ITC's capabilities on swift procurement and processing,

freighting skills and an ability to deliver promptly as per the buyer's requirement

have increased customer satisfaction levels considerably.

Spices

ITC forayed into the branded spices market with the launch of Aashirvaad Spices in

May 2005. The offering currently consists of Chilli, Turmeric and Coriander powder in

SKUs of 50g, 100g, 200g and 500g each. Aashirvaad Spices, operating in selected

markets of south and east, have spread to a large consumer base and have emerged as a

major player in basic spices in most regional markets.

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Aashirvaad Pickle Mirch Powder

In March 2008, Aashirvaad added a unique variant to its Spices range with the

launch of Pickle Mirch Powder in Andhra Pradesh, a state known for its variety of spicy

pickles. The Pickle Mirch Powder uses the finest of Warangal Bamboo Chillies, which

are sourced directly from the farmers and selected by experts to ensure the right aroma,

pungency and colour.

:: Instant Mixes

Convenience and authentic taste now has a new name with the Aashirvaad

Instant Mix range. This range, launched in March '06, now includes Gulab Jamun, Rava

Idli, Rice Idli and Rice Dosa. Aashirvaad Instant Mixes promise the discerning Indian

homemaker perfect tasting dishes, consistently. The Rava idli Mix is available in 500g

pack and rest of the products are available in 200g packs.

:: Aashirvaad Ready Meals

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Aashirvaad Ready Meals - a range of ten of the most popular Indian dishes in a ready-to-

eat format. This range endeavours to provide the consumer an experience of authentic, home-

made food at an affordable price. These are 100% natural and have zero preservatives.

Chilli History

Everything You Wanted To Know About Chilli History - How They

Circumnavigated The World

On this page we'll take a look at the history of the chilli after Columbus arrived in the

Caribbean and Central America.

What we find fascinating is that the chilli was adopted around the world in a period of

approximately 50 years. This was achieved in a period when horse-drawn and wind-

driven were the primary means of transport. It's almost as if the world was waiting for the

chilli to arrive.

Despite Spain's apparent early claim to the chilli, the Portuguese appear to be the

first traders to have spread the them globally. Portugal's maritime power -

rounding the Cape of Good Hope and reaching India in 1498 - set a course for the

chilli to leave South America.

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The Treaty of Tordesillas in 1494 had effectively split the world in half between

Spain and Portugal, and the Portuguese were eager to exploit their half, especially

Brazil. By the 1500's they were regularly exporting chillies from Brazil, the only

part of South America which Portugal could claim under the Treaty.

During their trips to India, the Portuguese traders stopped in various African ports

along the way. The Africans' fondness for Grains of Paradise, or Guinea

Pepper (Aframomum melegueta), which have a gingery, peppery taste, prepared

them to absorb the pungent chilli into their cuisine with ease. In only a few years,

chillies had traveled as far east as Mozambique. But trade was only one agent of

the chillis spread: Portuguese slave gathering in Africa also played a large part.

While it is possible to trace the chillis move from South America across the

Atlantic Ocean, its crossing of the Pacific is more difficult to pin down. The 1529

Treaty of Zaragosa defined Spanish and Portuguese jurisdiction in the Asia-Pacific

region: the Spanish received the Philippines, and Portugal received the Spice

Islands, or Moluccas (part of Indonesia around Sulawesi).

By 1540, the Portuguese were trading in Indonesia; soon after, chillies made their

way to China. However, it is unclear if the Portuguese were the first to bring the

chilli to China. Indians and Arabs were actively trading with the Chinese long

before the Europeans arrived in asia. Furthermore, Hunan and Szechuan

provinces, whose cuisines use chillies most frequently, were connected to the non-

Chinese world by the Silk Road trade route rather than by coastal ports. Moreover,

at the time, there were no direct overland routes from Chinese ports to those two

provinces.

In 1549, the Portuguese reached Japan, but again it is unclear if they introduced

the chili pepper there, because the Japanese had already ventured to Mexico in

Spanish-designed ships.

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While Africa, India, and Asia quickly absorbed the chilli, Europe seemed reluctant

to use it as anything more than a curiosity or an ornamental. From Spain, the chilli

moved to Antwerp, then to Italy in 1526, and on to England in 1548. Curiously,

the chilli did not reach Eastern Europe through trade with other Europeans.

There are a number of similar but competing theories as to how the chilli did reach

Eastern Europe;

o Muslim merchants may have brought chilli from India through the Persian

Gulf, on Alexandria, and then north into Eastern Europe.

o Alternatively, the Turks could have brought chillies from Asia and then

transported them through the Persian Gulf, Asia Minor, and the Black Sea

in to Hungary, which they conquered in 1526. From Hungary, the chilli

then probably moved into Germany.

o A third possibility has the Portuguese exporting chillies from Hormuz, one

of their colonies in the Persian Gulf, to Eastern Europe as a cheaper

alternative to black pepper.

Interestingly, it was not until 1868 that Europeans learned that chillies were not

originally from India.

Most surprising is the length of time it took for the chilli to arrive in North

America. Despite being grown in Mexico for thousands of years, it was not until

the slave trade was in full swing that the chilli appeared. By 1600, the British and

Dutch had broken the Spanish and Portuguese naval domination, opening up the

spice trade. However there does not appear to have been any demand for chillies

from the Americans as a result of this. Instead, it was the use of chillies in the

African cuisine that is the reason behind their spread. Chillies had become such a

integral part of the African diet that slave traders had to bring large quantities with

them on their trans-Atlantic voyages. Also, to maintain the African slaves' eating

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habits once in North America (and consequently their performance), the plantation

owners had to grow chillies. As a result, it was not until the 17th century that the

chillies had become a staple in North America.

Growing Introduction

Weve put together a series of our most popular articles to help you grow healthy

chilli plants. With the help of the below articles you should have all of the information

you need to help you source chilli seeds, grow your plants, ward off pests and disease,

harvest chilli peppers and even store your crop for use throughout the winter.

Growing Guide

This is our definitive guide to growing chili plants. It provides a step by step guide

to all the stages youll need to go through from selecting and planting seeds, right up until

you harvest your home grown chilies.

Pest & Diseases

Unless you are very lucky indeed there is a fairly high chance your chilli plants may

encounter some form of pests or disease. Luckily this isnt as bad as it sounds and most

problems are ones youll face with all types of vegetable growing. Our pests and diseases

article runs down many of the common problems your plants may develop. For more

specific advice take a look at these resources on combating slugs and snails or dealing

with aphid attacks.

Chilli Gro Lights

We keep saying it but the key to growing healthy chilli plants is to give them lots of

light. Many growers supplement natural light in order to get the maximum growth from

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their chilli plants. You can just do this early in the season using cheap household lights

(like we do) or you can go the whole hog and use purpose built gro lights to potentially

get huge harvests all year round. Read more about chilli lights.

Over Wintering

A common misconception is that chilli plants are annuals. Too many chilli gardeners

throw away their pepper plants at the end of the autumn thinking that they have served

their purpose and will die off over the winter. With just a little luck and the invaluable

advice from our overwintering article you should be able to get most of your chilli plants

through the winter giving you larger, stronger plants next year.

Hydroponics

Growing your chilli plants in a liquid matter with a precise balance of nutrients and

minerals (instead of compost) can produce outstanding growth rates and monster harvest

of peppers. Take a look at our hydroponics guide here.

Chilli Pepper Seeds

Selecting the right chilli seeds to use and the initial germination are perhaps two of

the most important factors in chilli growing. Our chilli seeds article gives you all the

information you need to know about where to buy seeds, how to save your own and some

great tips to germinating seeds.

Growing Bell Peppers

We get a lot of emails and questions from readers wanting to know if they need to

treat their sweet peppers any different form their hot chilli peppers. Weve created a

specific guide to growing bell peppers to try to help answer some of these questions.

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Chili Pepper Seeds

Chili pepper seeds are now easier to come than ever. Once thought of by gardeners as

specialist plants growing chili peppers is easier than most people think. The popularity of

growing chili peppers has boomed over recent years, leading seed suppliers and garden

centers to increasingly stock chili pepper seeds.

A few years ago you were luck if you found a generic packet of Chili Seeds in

your local garden center. Nowadays however many are stocking several of the more

common varieties such as Cayenne, Jalapeno and Habanero. If you require something a

bit more specialist such as chocolate habanero or tepin or bhut jolokia pepper seeds a

simple search on the internet will usually lead you to what you want. There are a number

of reputable companies now selling good seed on Amazon.

Hot pepper seeds lifespan

As with most types of seeds if stored in to cool, dark, dry place the seeds can

successfully last a few years. However it is advisable to try to buy only what you intend

to use for a particular growing season. As with any types of plant seed it is worthinvesting in good quality chili seeds from a reputable supplier as these tend to have a

higher seed germination rate and produce stronger healthier plants that are more disease

resistant and will produce more chillies.

Germinating chili pepper seeds

The first thing you will need to consider is when you should start to germinate your

pepper seeds. If growing in North America or Europe then your aim should be as early in

the year as possible. If you are growing (or just starting your plants off) indoors or in a

greenhouse then you will be able to plant your pepper seeds as early as January/February.

If you plants are destined to be kept outside then your exact timings will be dependent on

your local weather conditions. If starting off indoors start early but remember you will

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not be able to put any plants outside until the last frost has passed so be sure you have

enough space and light available until then

As with germinating any type of seeds the key to success is heat & moisture. Plant your

chili seeds in a standard multipurpose compost, moisten with a mister (as opposed to

soaking) and place somewhere warm. Ideal places are those that provide a constant warm

temperature such as in an airing cupboard, on top of a fridge or computer monitor or in a

cupboard. In addition covering the seeds (either with a propagator lid or clear plastic bag)

will help to keep the moisture in the soil.

There are several thing you can do in an attempt to increase your germination rates.

Some of the techniques described below are believed to work, some are thought of as old

wives tales. However as with any form of gardening none are an exact science and

experimentation is best to see what works best for your particular circumstances.

Pre Soaking your chili seeds in a little water for a few hours can be a good way to

reduce the germination time. The reason this works is that it quickly softens the seeds

outer casing while at the same time prompting the seed to swell in to life. There are

various ideas that soaking your seed in weak tea solutions or vinegar can help increase

germination rates or even help prevent disease in your plants. These may be worth a go

and can be fun to experiment with however regular tap water usually does as good as any.

Temperature of your soil is vital to germination. Annum varieties which include

ornamental pepper seeds such as numex tend to germinate fine at lower temperatures but

other varieties such as habanero or bhut jolkia will require warmer temperatures in the

region of 70-90oF (20-32oC). The temperature will have a massive impact on the speedand success rates of germination so be sure to put your chili seeds somewhere warm

during this phase.

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Yield Definition:

Yield can be defined as the amount of prime product manufactured from a given

amount of materials. In other words to giveforth orproduce by a natural process or in

return for cultivation.

Yield Variance

The yield variance is the result of obtaining a yield different from the one

expected on the basis of input. It occurs when the actual yield differs from the standardyield expected from a given mix of inputs.

The difference between actual output and standard output of a production or

manufacturing process, based on standard inputs of materials and labor. The yield
http://www.definitions.net/definition/givehttp://www.definitions.net/definition/forthhttp://www.definitions.net/definition/producehttp://www.definitions.net/definition/naturalhttp://www.definitions.net/definition/givehttp://www.definitions.net/definition/forthhttp://www.definitions.net/definition/producehttp://www.definitions.net/definition/natural

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variance is valued at standard cost. Yield variance is generally unfavorable, i.e., actual

output is less than standard or expected output, and only rarely favorable.

E.g.:

In sugar refining, a normal loss of yield develops because, on the average it takes

approximately 102.5 pounds of sucrose in raw sugar form to produce 100 pounds

of sucrose in refined sugars. Part of this sucrose emerges as black strap molasses,

but a small percentage is completely lost.

Variance Analysis:

Analysis of variance (ANOVA) is a collection ofstatistical models, and their

associated procedures, in which the observed variance in a particular variable is

partitioned into components attributable to different sources of variation. In its simplest

form, ANOVA provides a statistical test of whether or not the means of several groups

are all equal, and therefore generalizes t-test to more than two groups.

There are three classes of models used in the analysis of variance, and these are

outlined here.

Fixed-effects models (Model 1)

The fixed-effects model of analysis of variance applies to situations in which the

experimenter applies one or more treatments to the subjects of the experiment to see if

theresponse variable values change. This allows the experimenter to estimate the ranges

of response variable values that the treatment would generate in the population as a

whole.

Random-effects models (Model 2)

Random effects models are used when the treatments are not fixed. This occurs

when the various factor levels are sampled from a larger population. Because the levels

themselves are random variables, some assumptions and the method of contrasting the

treatments differ from ANOVA model 1.
http://en.wikipedia.org/wiki/Statistical_modelhttp://en.wikipedia.org/wiki/Variancehttp://en.wikipedia.org/wiki/Statistical_testhttp://en.wikipedia.org/wiki/Meanhttp://en.wikipedia.org/wiki/Student's_t-test#Independent_two-sample_t-testhttp://en.wikipedia.org/wiki/Student's_t-test#Independent_two-sample_t-testhttp://en.wikipedia.org/wiki/Response_variablehttp://en.wikipedia.org/wiki/Random_variableshttp://en.wikipedia.org/wiki/Statistical_modelhttp://en.wikipedia.org/wiki/Variancehttp://en.wikipedia.org/wiki/Statistical_testhttp://en.wikipedia.org/wiki/Meanhttp://en.wikipedia.org/wiki/Student's_t-test#Independent_two-sample_t-testhttp://en.wikipedia.org/wiki/Response_variablehttp://en.wikipedia.org/wiki/Random_variables

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Mixed-effects models (Model 3)

A mixed-effects model contains experimental factors of both fixed and random-

effects types, with appropriately different interpretations and analysis for the two types.

Agri Business Overview :

ITCs foray into the spices business, through its Agri Business arm (ABD), the

ILTD Division, is an endeavor to provide quality differentiation across the value chain

from the farmer to the customer. Farm interventions are designed to Produce The Buy

rather than Buy The Produce. The customers derive value from Quality Assured and

Identity Preserved spices at Globally Competitive Prices. ITC Spices serves as the

benchmark for spice industry standards. Ever since its inception, it has ensured that it will

grow by co-creating value for the Customer, Suppliers and Farmers. ITC Spices has

gained immense success and reputation through its business activities and looks forward

to place itself on the Global Spice Map as a One Stop Shop for Spices & Spice

Derivatives.

ITC Spices continues to work towards providing augmented quality offering ofproducts and services to its esteemed customers. An endeavor to this end is achieved

through customized growing programs and augmented service offerings spanning

cleaning, blending, packing, storage and shipment. Its facilities are organic certified by

Control Union (Formerly SKAL) and thus it is fully capable of offering organic spices as

well.

ITC shares a century long relationship with the farming community reaching

directly to the farm gate, linking the farming community to the global business circuits

and international best practices. ITC is Indias largest exporter of Agri products valued at

over Rs. 15 Billion (US $ 380 Million) with a wide range of products including Spices.

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CHILLIES.

Chilli (Capsicum annuum L.; Capsicum frutescence.), also called 'red pepper', is an

important cash crop in India and is grown for its pungent fruits, which are used both

green and ripe (the latter in the dried form) to impart pungency to the food. As a

condiment, it has become indispensible in every in every Indian home. It is also used

medicinally, and in chutnies and pickles. The pungency is due to the active principle

'capsicin' contained in the skin and the septa of the fruit. Introduced from tropical South

America in the seventeenth century, it is now grown in all parts of India covering about

7,33,800 hectares. Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu account for

about 75 per cent of the total area and annual production.

GENERAL BOTANICAL ASPECTS.

Capsicum palnts are herbaceous or semi-woody annualsor perennials. The leaves are

ovate, tapering to a sharp point, entire up to 15 cm long, dark green on the upper surface

and pale green on the lower surface. The flowers are small, white and borne singly or in

clusters of 2 or 3 in the axils of the leaves. The fruits are of diverse shapes and sizes

depending upon the variety.

CLIMATE AND SOIL.

The crop is grown from almost the sea-level up to an altitude of 1500 metres in

tropical and subtropical regions with an annual rainfall of 60-150 cm. Very high rainfall

during its growth is harmful. When grown in the hot-weather or in lower rainfall tracts, it

is cultivated as an irrigated crop. The rain-fed crop does well on deep-fertile, well-

drained black cotton soils. In ill-drained soils the plants shed their leaves and turn sickly

even in temporary water-logging. Under irrigation and good manuring excellent crops

can be raised in sandy and light alluvial loams as well as in red loamy soils.

ROTATION.

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Under rain-fed conditions, the crops is rotated with jowar, ragi, cotton, groundnut and

castor. As an irrigated crop, it is grown in rotation with sugarcane, turmeric, ragi, maize

or with any of the vegetables. Since the pests and diseases are common to chilli, brinjal

and potato it is not advisable to include them in a rotation. The irrigated chilli crop issometimes grown mixed with millets, groundnut, cotton , ginger or vegetables. As a

garden crop in northern India, it is sometimes allowed to grow as a stand-over crop for

one or two seasons.

CULTIVATION.

The land is ploughed and harrowed 3 or 4 times to obtain a fine tilth. About 100

cartloads of farmyard manure or compost per hectare is applied at the last ploughing.

Some farmers also do sheep-penning and pen about 5000 sheep per hectare, in addition to

the application of manures. In Andhra Pradesh the crop receives a basal dressing of 10-12

tonnes of farmyard manure or compost. Green manuring is recommended for the areas of

assured rainfall and also for the irrigated crop. In addition, 60 kg of N, 30 kg of P 2O5 and

50 kg of K2O per ha for tyhe rainfed crop and 60 kg of N, 60 kg of P2O5 and 50 kg of K2O

per ha for the irrigated crop are applied as a basal dressing. The land for irrigated chilli is

laid out in beds, 2-3 square metres, or is made into ridges 1/2 to 1 metre apart. The winter

crop is planted from July to September and the summer and the summer crop in February

and March. Whereas these are the two important seasons for its cultivation, a third-crop,

known as the mid-season (May-June) crop, is also taken in certain parts of the country.

The chilli is generally transplanted, though direct sowing is also done in certain parts

of the country, especially in Andhra Pradesh. Seeds taken from healthy, well-matured

fruits selected for the purpose are mixed with ashes and sown evenly in well-manured

nursery-beds. beds are generally 1.2m wide and 15 cm high with channels, with channels

between the beds to facilitate the drainage of excess water. About 1100-1200g of seeds

are sown in 0.01 ha will give sufficient seedlings to transplant in one hectare. The

treatment of seed with Ceresan or Agrosan GN, as a plant-protection against seed-borne

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diseases, is desirable. The seed is protected from the sun with a thin mulch of straw or

leaves. The mulch is removed on the completion of germination in about 7-10 days. The

seedlings are irrigated every day and manured either with ammonium sulphate or with

some oilcake. Spraying the crop with 1% Bordeaux mixture or someother copperfungicide during the third week after sowing is desirable to prevent damping-off. The

seedlings are thinned, if necessary and those growing too tall are sometimes topped. The

seedlings are ready for transplanting in 40-45 days. They are generally transplanted on a

cloudy evening preceding rain, or when it is actually drizzling. A shower at or after

transplanting helps the seedlings to take a quick foothold; in the absense of it, a light

watering is given. Seedlings are planted 45-60 cm apart in straight rows 1/2 to 1 m apart.

In Karnataka furrows, 60 cm apart, are opened with a country-plough along as well as

across the field and two good seedlings are planted along the water-line on one side of the

ridges made 25-45 cm apart. Similarly, in beds a spacing of 45-60 cm is adopted. The

irrigated crop is weeded and hand hoed 3 or 4 times. Irrigation is given at 7-10 day

intervals, depending on the season and the crop growth. The rain-fed crop is given 2 or 3

hoeings with bullock-drawn implements and sometimes earthed up to help the surplus

rain water to flow freely. The crop responds well to good cultivation , irrigation and

manuring. The rain-fed crop is top-dressed with 20 kg of N per ha to be drilled in

between the rows on the 45th day after planting, preferably a good shower. For the

irrigated crop, 100-140 kg of N in 4-6 split doses, followed by a copious irrigation at

fortnightly intervals , starting from the 45th day of planting is recommended to be top

dressed.

VARIETIES.

The varieties under cultivation differ in the size, shape, colour and pungency of the

fruits. The fruits may be thin and long, large and thick, short and bell-shaped, small and

round. The unripe fruits may be green, creamy and yellow or orange. Similarly the ripe

fruits may be of different shades of red. The variety of bell-shaped fruits is the least

pungent and is cooked as an ordinary vegetable. Capsicum annuum and C. Frutescens are

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the two principal species grown in the varieties of the former constitute the chief of the

dry chilli or commercial use.

Crop improvement research at the Indian Agricultural Research Institute, New

Delhi, has produced 'NP 41', a high-yielding pungent chilli and 'NP 46', another chilli

resistant to thrips. 'Hybrid 5-1-5'is high yielding and suitable for the production of green

chillies. Among the non-pungent vegetable types, two American varieties, 'World Beater'

and 'Bell Pepper', and one Russian variety, 'R. 449' are high-yielders. In Andhra Pradesh,

the improved varieties, 'G-1','G-2','G-3','G-4' and 'G-5' and four cultures, 'X-200',

'Ca.960', 'X-196' and 'X-197' are high-yielding and are fast spreading in the state. The

variety 'G-1' is high-yielding and tolerant to thrips, has a persistent calyx and is highly

suited for export. 'G-3' responds well to higher doses of fertilizers. 'G-4' is a strain

suitable for producing green chillies. It has a mild pungency and low seed content. It is

more productive and more tolerant to pests and diseases than 'G-3'. 'G-5' is a short-pod

variety.

HARVESTING.

The crop becomes ready for harvesting in about 31/2 months after planting . The

picking of ripe fruit continues for about 2 months and about 6-10 pickings are taken for

this purpose. The summer crop is wholly disposed of as green chillies. Ripe fruits are

picked along with stalks and are heaped indoors for 3 or 4 days for the partially ripe fruit

to develop the proper red colour. They are then dried in the sun for 4-5 days depending

upon weather conditions and are graded for size and colour before marketing. Unripe

chillies are sometimes oiled and dried for domestic consumption. Commercially, there

are various grades such as the first sort, mixture etc. Grades, such as special medium and

fair are also adopted. Good fruit length, shining red colour, high pungency and strong

attachment of the calyx are the important factors which the merchants consider for

fetching a high price.

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In the USA and other countries, there is a liking for stalkless chilli pods of deeep red

and glossy pericarp. Artificial drying favours the retention of the deep red colour and

smooth and glossy pericarp, as the produce is dehydrated within a short period of 18

hours. Pods of 'G-3', which have a cup shaped calyx and compressed base are reported towithstand the removal of the calyx. The seeds can be retained intact since the thalamus

portion, which is compressed prevents shedding.

YIELD.

The average yield of the rainfed crop is about 500 kg of dry chillies per ha and that of

irrigated crop varies from 1000-2000 kg per ha. The recovery od dry chillies is 25-30 per

cent of the fresh weight.

Chilli production scenario:

India is the largest producer, consumer and exporter of chilli in the world. Other

major producing countries are China, Pakistan & Mexico. India contributes to 30 % ofworld production and only 10-15% of Indian production is exported.

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Chilli varietal Profile:

VARIETIES

Fruit

Length

(cm)

Fruit % Stem % Seed % ASTA Capsaicin SHU

273 9.5 59.2 5.6 35.2 90.0 21000

334 Warangal 7.4 53.0 4.9 42.1 60.0 32000

LOCATION VARIETIES PRODUCTION (MT)

GUNTUR (AP)334, US341, 273, IND,

BYADAGI

40,000

KHAMMAM (AP) TEJA 10,400

WARANGAL (AP)WONDER HOT,

CHAPATA, 3348000

KURNOOL (AP) 341, DD 1,600

BYADAGI (KNTK) K.BYADAGI, DABBI14,000

BELLARY (KNTK) K.BYADAGI

INDORE (MP)No.12, GANESH, US,

JWALA14,000

RAMANTHAPUR (TN) MUNDU

1760

VILATHIKULAM (TN) S.SANNAM

MAHARASTRA BYADAGI, GANESH 500

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334 Guntur 6.7 52.4 5.6 42.0 50.0 23000

INDAM-5 7.8 58.4 5.2 36.4 75.0 50000

341 Badrachalam 8.6 74.0 4.0 22.0 120.0 50000

341Guntur 8.2 45.2 9.2 45.6 130.0 55000

4884 6.8 50.4 7.6 42.0 70.0 80000

Teja 6.8 53.0 6.5 40.5 80.0 75000

Karnataka Byadagi 8.4 55.2 6.0 38.8 145.0 11000

Guntur Byadagi 9.5 73.0 4.5 22.5 145.0 12000-15000

Wonder Hot 12.3 77.6 4.8 17.6 100.0 13000

Chapata 9.0 79.7 8.0 12.3 110.0 8000

Devanur Delux 10.3 69.4 4.8 25.8 130.0 42000

Naga Chilli 5.0 71.0 4.0 25.0 32.0 420000

Birds Eye Chilli 2.0 45.0 4.0 51.0 29.70 >120000

CHILLI SUPPLY CHAIN :

The following are the segments of chilli value chain:

A) Procurement

B) Movement

C) Storage

D) Operations

E) Quality Control

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F) Processing

G) Marketing

Chilli procurement of Spices Business is spread across A.P., Karnataka, M.P.,

Tamil Nadu & Maharastra. The raw material (sun dried chilli) is procured from different

sources. Post procurement, the raw material is moved from sourcing points to respective

storage locations (dry warehouse or cold storages) or to operations points (Semi-

Finished/Finished handling points / processing plants). After the relevant operation, Final

Product or Semi-Finished product is produced and packed in different proportions. Based

on the demand and storage plan, stocks are moved to storage location from where they

will be moved to the end customer once sale takes place.

C. Operations :

Following are the operations involved in chilli supply chain :

Raasi Drying De-stemming De-seeding Packing Labeling Sampling Marking Fumigation Stacking

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Containerization

Raasi:

Purpose -

Blending {uniform mix of grades (a+b / b+c / a+b+c)} To reduce moisture content of the product (11+-1%) Grading - Removal of damage & discolored (DD) pods; mould infested pods

(MIP); broken chilli (BC); insect damaged pods (IDP); pods without stalk (PWS),

loose seeds (loose seeds)

Uniform standard packaging how, where, when man Labeling Cleaning (removal of foreign matter) Quality check

Requirement for Raasi Most farm buy material (IPM, 30.5kg packs) and dealer buy

material (35 kg packs) do not require raasi. Duration of Raasi operation generally ranges

from 4- 10 hours depending on the lot size, number of grades to be mixed, moisture

content of material, prevailing weather condition, material texture (thick / thin pericarp).

Raasi is mandatory for:

Material meant for connection to plant Export material Food Business Division Material

Yield percentage during Raasi operation varies: Moisture loss is (3-5%); loose seeds

yield is (1%); talu/damaged pods - depends on grading intensity; material shrinkage -

depends on type of bag weighment recorded (exact weight or lower values) during

procurement vs weighment during issue for Raasi. Raasi yield of 97% is achieved from

material meant for FBD, this is due to: i) No grading is required, only single grade/blend

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is subjected to cleaning and handling ii) FBD material is procured from Mandi (90%) &

dealer buy (10%). In mandi buy, the lower gross weight of the bag is calculated during

weighment. If bag weight is 35.4 kg, recorded weight is 35 kg gross & 34 kg as net; if

bag weight is 35.8 kg, recorded weight is 35.5 kg gross & 34.5 kg net. If bag weight ismore than 45kg, there is 1 kg standard deduction of material weight apart from deducting

the gunny weight of 1 kg (44 gross & 43 net weight). Also lower gross weight is

calculated during mandi buy to compensate anticipated yield loss due to handling,

spillage, moisture loss. 95% yield is obtained from material meant for ILTD since

grading & all other standard ops are conducted

Post Raasi operations consists of :

Quality check of material Physical analysis for {(dd)damage & discoloured; moisture; mip(mould infested

pods); (bc) broken chilli; (idp) insect damaged pods; (pws) pods without stalk),

(ls)loose seeds}

Sampling : 2 kg sample drawn by standard procedure. 1 kg to lab, 1 kg for control Uniform repacking ( For FBD (35kg net); ILTD-25/30/35kg) Individual bag labeling (operation date, grade, quantity, cost) Label stitching (FBD -white; ILTD - yellow) Yield reconciliation against issue in log book Preparation of repacking statement & physical analysis report & ERP data entry

Drying: Chilli drying operations is for moisture content regulation for processing,

shipment and storage. :

For material to be connected to plant -

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De-stemming : De-stemming is the process of removing the stem and calyx from the

Chills pods. De-stemming operation is done as per customer specification or market

demand. It is done manually by experienced workers. Loose seeds, calyx, white chilli etcare the by products of de-stemming operations. Documents required - Stack Card, De

stemming report, Check weighment register, Issue register

De-seeding: removal of seeds from chilli pods as per customer requirement

Packing: Each lot is uniformly packed in different sizes and in different packing material

as per customer specifications

Labeling: Labeling the bags/stacks for traceability during storage & transportation

Sampling:

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Sampling is done for physical analysis of the product and for QC lab analysis. 2 or 3

representative samples of 1 kg each are drawn from the lot following the standard

sampling procedures; sample bag is tagged (commodity, crop year, grade, date, lot

quantity, customer name, location); 1 sample is sent to the QC lab for analysis; 1 sampleis retained as control; 1 sample is sent to customer (if required). Documents: Sample

dispatch register, sample code format, sample issued book, sample register

Marking:

Markings are given on each bag at the time of buying for traceability:

Marking process Company name(ITC Ltd.)/Bag weight(42.5)/ Grade(F2B)/Date of

buy(19.11)/Lot size(26)/Serial no. of bag(7)

Fumigation:

Fumigation is done for safe storage by killing the insects and storage pests.

Fumigation is done at least once in a year or whenever changes in procedures or

processes occur. Fumigation to be carried by the authorized and trained fumigators only.

All shipments to processing plant should be done only after fumigations and date of the

fumigation to be declared on the loading sheet. Documents: Fumigation register &

certificate

Stacking:

Stacking to be done for effective use of space at Godown and also to maintain lot

identity till it moves out of the godown. Standard stacking pattern to be followed

containing 3 bags/ Unit to ensure compactness and also for maximum utility of the space.

Once the stacking is done, the godown in-charge should immediately tag the stack with

stack card at a prominent location, which received from, operation no., grade, no. of bags,

quantity(net) in kg/MT). Documents Stack card & loading sheet

Containerization:

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D. Storage:

Dry ware house and handling unit infrastructure:

UNIT LOCATION OPERATIONS

TOTAL

CAPACITY

(MT)

INCHARGE

NALLAPADU

GODOWN

NALLAPADU

(NPG) WARE

HOUSING/STORAG

E

100PRAMOD B

(7893563222)

CONTAINER

STUFFING

CERTIFIED BY

SPICES BOARD /

CFS

28

POWDER

STUFFING -

CONTAINERIZATI

ON

18

WHOLE STUFFING- 12MT(10KG

PACKS)/

14MT(25KG

PACKS)

12/14

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SPICES BOARD /

CUSTOMS

FUMIGATION

CERTIFIED

DE-STEMMING 22

RAASI 330

VIJAYA

AGRO

SERVICES(V

AS)

NALLAPDU

RAASI 220

BHASKER

(8897565359)

WAREHOUSE/STO

RAGE100

DEHUMIDIFICATI

ON (BRY AIR)220

MACHINE

CLEANING66

GRADING

CONVE

YOR

DESTEMMING 15

KRISHNA

SPICES

BY PASS ROAD

(MADRAS HIGH

WAY)

RAASI 264 KIRAN

(9949928517)

SUGUNA

RAO

STORAGE 80

DESTEMMING 15

KANAKADU

RGA (KDR)

BY PASS ROAD

(MADRAS HIGH

WAY)

RAASI 176 CHENNAKE

SAVA

(9849919554)STORAGE 45

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SHIVA

CHILLIES

(CKP)

CHINNAKONDRA

PODU

RAASI 120

VANDANAM

(9959452134)

VENKAT

WAREHOUSE/STO

RAGE50

DEHUMIDIFICATI

ON (BRY AIR)220

MACHINE

CLEANING44

GRADING

CONVE

YOR

PALLAKALA

RU DSUPALLAKALARU DE-STEMMING 33

SHUKUR

(9948927543)

SATTANAPA

LLI DSUSATTANAPALLI DE-STEMMING 33

SITTAIH

(9704312069)

SATULURU

DSUSATULURU DE-STEMMING 22

NARENDRA

(9989590952)

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WAREHOUSE OPERATION PROCESS FLOW

DOCUMENT

FLOW

IN

CHARGE

On receipt of material at warehouse, 10% check weighment of

the lot is done

Receipt register,

loading sheet,

gate pass, weigh

bridge challan

Location in-

charge,

clerks and

dealing

assistant

Log book entry is done

Cross check the marking on bags received from cold storage

(grade, lot size, weight)

Received material will be stored in 3 alternatives ways:

i)Material stacked inside due to weather conditions, space

utilization, operation purpose(fumigation / sun dry); ii)

material stacked in outside platform for issuing to operations

for next day; iii) material directly issued for Raasi on the same

day

Stacking of material and issue of bonds grade wise Warehouse bond

Issue for Raasi : 100% check weighment or 10% (square root

of bags) before Raasi issue - depending on variation in weights

(if variation of weight is >10% during 10% check weighment,100% has to be done)

Issue register,

log book, work

order book,

Post Raasi operations

Physical

analysis report,

sampling

register,

repacking

statement, by

product register,

yield register,

check

weighment

register, yield

reconciliation

statement, ERP

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Average Destemming Yields for the Year 2011-12

334

334

Total 341

341

Total Chapata

Cpt

Total INDAM

IND

AM

Total

Teja

Total

Customer IPM

Non-

IPM IPM IPM

Non-

IPM IPM

Non-

IPM

BUCHAN

AN 82.31 82.31 87.85 87.85 86.29 86.29 82.61

EAST

END 85.50 85.50 89.08 89.08 90.14 90.14 84.07

FBD

SNACKS 86.62 86.62 91.72 89.74 90.89 83.84

HEY

LANDS(st

em cut) 88.96 88.96

IBD 80.68 87.23 86.68

ILTD 86.11 83.87 84.65 90.14 90.14 90.67 90.67 90.06 85.57 88.19 82.81

NATCO 84.38 84.38 86.38 86.38 85.49 85.49 82.00

TRS 86.15 86.15 89.25 89.25 82.08

VPSA 83.02 85.56 85.44 82.14

WHOLE

HERBS 84.49 84.39 84.40 80.56 90.00 85.28 80.81

Average

Yield % 85.40 85.56 85.47 88.26 88.26 90.20 90.16 90.18 87.42 85.57 87.09 82.04

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Variety

ANNSFLAVOR

B

UCHANAN

C.V

JAYA

DELTA

EASTEND

ELITE

FBDSNACKS

M

A"SFOOD

NATCO

NSKPAKISTAN

P

.T.T

EGHU

TRS

334 SL 95.30 96.24 97.09

341 SL 98.45 95.83

CPT SL

IPM 273 97.29 97.77

IPM 334 97.67

IPM 341 97.18 96.00 97.38

IPM 4884 97.87 95.74

IPM CPT 96.34

IPM CPT

Pericarp 93.83IPM DD 93.13 97.08 96.34

IPM

INDAM SL 97.41

IPM K Byd 95.95 93.99

IPM Teja 96.94 98.39 97.53 97.06 97.88

IPM WH 96.47 97.23 94.62

IPM WH

SL 97.39

Naga chilli 96.34

Non IMP

Teja SL

Non IPM

273 95.98 94.23

Non IPM

334 96.07 95.34 96.02 96.13

Non IPM

341

Non IPM

CPT 95.42

Non IPM

IND 95.95

Non IPM K

byd 96.98 95.60

Non IPM

Teja 95.14 94.67 95.76

Non IPM 97.58 95.01

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WH

Teja SL 95.66

Handling Yield ILTD

Customer I Qty (Kgs)

Pkd Qty

(Kgs) Targetted Achieved Difference

BUCHANAN 3756.5 3404 92.8 90.61627 -2.18373

ELITE 76709 68683 94 89.53708 -4.46292

FBD-40-MS 50886 49356 96 96.99328 0.993279

HEYLANDS 28068 26525 93 94.50264 1.502636

IBD 19488.5 18870 97 96.82633 -0.17367KFL 15744.5 14687.5 94 93.28654 -0.71346

MASS FOODS 12976 12483 96 96.20068 0.200678

NATCO 105312.8 102834 96 97.6463 1.646296

OMEROGLU 7726.5 7544 97 97.638 0.637999

SWANI 80550.5 77291 97 95.95347 -1.04653

TRS 48260.5 47163 98.15385 97.72588 -0.42796

FBD SNACKS 12483 10225 80.5 81.9114 1.4114

EUROMA 15422.5 15156 96 98.27201 2.272005

CV JAYA 14819.5 14119.6 97 95.27717 -1.72283

NESTLE 9545 9324 97 97.68465 0.684652

Grand Total 501748.8 477665.1 94.28 95.20006 0.920058

FBD

Customer I Qty (Kgs)

Pkd Qty

(Kgs) Targetted Achieved Difference

FBD C1EW 84852.5 82152 97 96.81742 -0.18258

FBD C1UW 147963.5 142285 97 96.16223 -0.83777

FBD C1BW 135852.5 131256 97 96.61655 -0.38345

FBD C4HW 24616 23700 97 96.27884 -0.72116FBD C2JW 16891 16236 97 96.1222 -0.8778

410175.5 395629 97 96.45 -0.55

Destemming Yield ILTD

Customer I Qty (Kgs) SL Chilli Targetted Achieved Difference

BUCHANAN 3017.5 2697.5 89 89.35518 0.355177

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FBD SNACKS 5270 4760 90 90.15444 0.154444

ILTD 7411 6033.5 86 81.82806 -4.17194

NATCO 54416 47012.5 84.09677 86.17235 2.075571

OMEROGLU 6201 5179.5 84 84.22487 0.224866

SWANI 39623.5 33751.5 85.95455 85.18082 -0.77372

TRS 50093 43715 84.88889 86.32284 1.433955Others 12776 10929 85.63636 85.12545 -0.51092

VPSA 1881.5 1476 82 78.15746 -3.84254

FBD SNAKS 6392.5 5479 90 88.53202 -1.46798

Sabatar 6919 5245 76 76.60471 0.604705

Grand total 194001 166278.5 84.87891 85.17976 0.300857

Handling Yield ILTD

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FBD

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Handling Yield ILTD

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FBD

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Calculation of some of squares

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Customer I.Qty SL Chilli Targetted Achieved TOTAL T2/n

BUCHANA

N3017.5 2697.5 89 89.36 5893.36 8682923.02

FBD

SNACKS11662.5 10239 90 89.61 22081.11 121893855

ILTD 7411 6033.5 86 81.83 13612.33 46323882

NATCO 55746 48186.5 84.1 86.21 104102.81 2709348762

OMEROGL

U7554 6459.5 84 84.52 14182.02 50282422.8

SWANI 49716.5 42226.5 86 85.01 92114.01 2121247710

TRS 50093 43715 84.9 86.32 93979.22 2208023448

VPSA 1881.5 1476 82 78.16 3517.66 3093482.97

Sabatar 6919 5245 76 76.6 12316.6 37924658.9

Grand Total 194001 166278.5 84.9 85.18 360449.58 7306821144

TJ2/n

418182088

9

307205995

1800.89

806.1813

8

725388244

7

Raw sum of squares

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TOTAL

3017.5 2697.5 89 89.36 16397718.71

11662.5 10239 90 89.61 240867157.2

7411 6033.5 86 81.83 91340135.4

55746 48186.5 84.1 86.21 5429569803

7554 6459.5 84 84.52 98802255.88

49716.5 42226.5 86 85.01 4254822297

50093 43715 84.9 86.32 4420324533

1881.5 1476 82 78.16 5731451.236

6919 5245 76 76.6 75394229.56

RAW SUM OF SQUARES(RSS) 14633249582

CORRECTION FACTOR(CF) G2/N 3608997215

TOTAL SUM OF SQUARES RSS-CF 11024252367

SUM OF SQUARES OF CUSTEMERS T2/N-CF 3697823930

SUM OF SQUARES OF VARIATIES TJ2/n-CF 3644885233

ERROR SUM OF SQUARES 3681543204

ANOVA TABLE

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SOURCE OF

VARIATIO

N

DEGRESS OF

FREEDOM

SUM OF

SQUARES

MEAN SUM OF

SQUARESF RATIO

CUSTOMER 9 3697823930 410869325.5 2.566856876

VARIATIES 3 3644885233 1214961744 7.590327906

ERRORS 23 3681543204 160067095.8

TITAL 35 11024252367

Table value of F at 5% level of signefecance at(9,23)degress of freedom is 2.32

Table value of t at 5% level of signefecance at(3,23)degress of freedom is 3.03

Calculation table for t-test

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Customer I.Qty(x)SL

Chilli(y)

RANK OF

X

RANK OF

Y

(X-

MEAN

OF X)2

(Y-MEAN

OF Y)2

BUCHANA

N 3017.5 2697.5 8 8 37076.34 31555.66

FBD

SNACKS11662.5 10239 4 4 13625.66 20478

ILTD 7411 6033.5 6 6 14822 12067

NATCO 55746 48186.5 1 1 111492 20929.75

OMEROGL

U7554 6459.5 5 5 -60335.25 12919

SWANI 49716.5 42226.5 3 3 99433 84064.56

TRS 50093 43715 2 2 99797.56 87430

VPSA 1881.5 1476 9 9 3763 2912.12

Sabatar 6919 5245 7 7 13798.12 10490

Grand Total 194001 166278.5232068.4

3219734.77

MEAN(X) 194001/9 21555.67

MEAN(Y) 166278/9 18475.33

COMDIND

VARIANCE

37721.625

STANDARD

DEVIATION194.22

T VALUE 19.94

Step 1

The main reasons for achieving high yield is as follows

Initial moitucher content ;

Natco,TRS, Swani are Initial moitucher and the arm are optimum are lower.

Hence the yield loss was low hence this was one of the primary reasons for

achieving yield.

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Varity used;

Natco,TRS, Swani are the high moitucher variety in thats way the yield is

high for all the seasons in that varieties resistance power is high.

Seed content;

For applying seed content is less, then yield is high Natco,TRS, Swani are used

for less seed content in thats way it gives a high yield.

Shrinkage;

If the less number of days shrinkage of yield is very high. The varieties

Natco,TRS, Swani are less moitucher then it dry less number of days shrinkage

then it given high yield.

Stem content;

In the Natco,TRS, Swani varieties of seed the stem content is less that will give

high yield.

Dry warehouse;

Natco,TRS, Swani Chillis are stored in a cold storage at 6-8c at 65-75% of row

material. If more number of days stored in a dry warehouse moitucher is high and

yield is loss

Quality of crop

If the quality of crop is good. Grading of yield is high that means tallu is

low. Natco,TRS, Swani seeds will give good quality of crop. In that case that will

give high yield and low thallu.

Packing;

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In general each packet weight age is 35 to 40 kegs. In that case yield loss is

low. Otherwise if we use packet of wit age is 10kgs to 20kgs the yield loss is high. In that

reasons we use each packet weight age is 35 to40 kegs.

Customer specifications

Customers will give direct specifications to the company in the field of grades,

yield, moictures etc. that will give more helpful to improve company performance.

Step2

Sabater, Omerogiu, Buchanan

The main reasons for achieving optimum yield is as follows


Sabater,Omerogiu, Buchanan are Initial moitucher and the arm are high are

lower. Hence the yield loss was optimum hence this was one of the primary reasons

for optimum yield.

Varity used;

Sabater,Omerogiu, Buchanan are a high moitucher variety in thats way the yield

is optimum for all the seasons in that varieties resistance power is high.

Seed content;

For applying seed content is less, then yield is high Sabater,Omerogiu, Buchanan are

used for less seed content in thats way it gives a optimum yield.

Shrinkage;

If the less number of days shrinkage of yield is very high. The varieties Sabater,

Omerogiu, Buchanan are less moitucher then it dry less number of days shrinkage

then it given optimum yield.

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Stem content;

In the Sabater,Omerogiu, Buchanan varieties of seed the stem content is

less that will give optimum yield.

Dry warehouse;

Sabater,Omerogiu, Buchanan Chillis are stored in a cold storage at 6-8c at 65-

75% of row material. If more number of days stored in a dry warehouse moitucher

is high and yield is loss

Quality of crop


low. Sabater,Omerogiu, Buchanan seeds will give good quality of crop. In that

case that will give optimum yield and low thallu.

Packing;






yield, moistures etc. that will give more helpful to improve company performance.

Step3

FBD SNACKS, VPSA, ILTD

The main reasons for getting low yield is as follows


Fbd snacks, vpsa, Iltd are Initial moitucher and the arm are high are lower. Hence the

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yield loss was optimum hence this was one of the primary reasons for low yield.

Varity used;

Fbd snacks, vpsa, Iltd are a low moitucher variety in thats way the yield is low for

all the seasons in that varieties resistance power is low.

Seed content;

For applying seed content is less, then yield is high. Fbd snacks, vpsa , Iltd are used

for more seed content in thats way it gives a low yield.

Shrinkage;

If the less number of days shrinkage of yield is very high. The varieties Fbd

snacks, vpsa, Iltd are less moitucher then it dry more number of days shrinkage

then it given low yield.

Stem content;

In the Fbd snacks, vpsa, Iltd varieties of seed the stem content is more that

will give low yield.

Dry warehouse;

Fbd snacks, vpsa, Iltd Chillis are stored in a cold storage at 6-8c at 65-75% of

row material. If more number of days stored in a dry warehouse moitucher is high

and yield is loss

Quality of crop


low. Fbd snacks, vpsa, Iltd seeds will give good quality of crop. In that case that

will give low yield and optimum thallu.

Packing;

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yield, moistures etc. that will give more helpful to improve company performance.

FINDINGS

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ITC Spices believes in the philosophy of Product++ offerings to cater to the entire

bandwidth of requirements of the customers. It provides the following services to meet its

customers specific requirements

Controlled environment storage systems for augmented shelf life

ITC Spices facilitates Just In Time shipments to adhere to processing plan

of its customers for minimizing storage costs as well as minimizing deterioration

in quality during storage

Shipments in customized forms, blends and packing to meet the varying end use

requirements

ITC Spices offers its customers complete peace mind through a dedicated Value

Added Support system which facilitates storage, negotiation of competitive freight

rates, scheduling a wide array back end services

ITC Spices takes utmost care at delivering the Best Quality Indian Spices adhering to

various quality norms of ASTA, ESA, PFA and Agmark as per the requirement of the

customers. The Supply Chain is modified to straddle the entire width of the value chain

of production and processing to ensure its customers have the choice of different grades

of spices on the basis of Active Ingredients and not just physical cleanliness

ITC Spices team works towards innovation to facilitate availability of improvedquality Indian spices to customers. The following classes of specialty products are

available under the Spices portfolio

ITC Spices' Quality Philosophy is premised on delivering value to customer,

which starts from procuring Quality @ Source and Quality Mapping across

various stages of value chain.

ITC Spices' emphasis on hygiene and quality control is reflected in ts state-of-the-

art laboratory which is equipped with the best 'Quality Control' facility.

SUGGESTIONS

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CONCLUSION

The study considered spices industry such as nuts, chilies etc, The performance of thecompany is studied through supply chain analysis i.e. fundamental and technical analysis.

Supply chain management (SCM) is the combination of art and science that goes into

improving the way your company finds the components it needs to make a product or

service and deliver it to customers. It is the process of planning, implementing, and

controlling the operations of the supply chain with the purpose to satisfy customer

requirements as efficiently as possible. Supply chain management spans all movement

and storage of goods, work-in-process inventory, and finished goods from point-of-origin

to point-of-consumption

BIBLOGRAPHY

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Reference Book:

Supply chain management sunil chopra&peter meindle

Logistics approaches to supply chain management Edward J Bradi

Logistics and supply chain management D.K.Agarwal

Supply chain management Rahul V Altekar

Websites:

www.google.com

www.itc.co.in

www.itcspices.com

www.itcportal.com

www.wikipedia.com
http://www.google.com/http://www.itc.co.in/http://www.itcspices.com/http://www.itcportal.com/http://www.wikipedia.com/http://www.google.com/http://www.itc.co.in/http://www.itcspices.com/http://www.itcportal.com/http://www.wikipedia.com/

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