Parle operation

Manpreet singh Hitesh Jain Mary Divya

Kedar Risbud Mustahid ali

Overview – Parle Agro Pvt. Ltd.

Food, Beverages Fast Moving Consumer Goods (FMCG)

Started in India in 1929. A Rs.10,000 cr. family owned business house.

Enjoys 40% market share of the total biscuit market in India.

Owns Parle-G, which is largest selling biscuit in the world with 80% market share in the glucose biscuit category in India.

Has 12 manufacturing units for biscuits and 75 manufacturing units for confectioneries.

Parle group has a manpower strength of over 2500 employees, including over 400 professionals.

Powerful Brands & Products…..

Consumer Psyche towards Parle - G

Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages.

While some have it for breakfast, for others it is a complete wholesome meal.

For some it's the best accompaniment for chai, while for some it's a way of getting charged whenever they are low on energy.

85%

38%

22%

14%

Market Share

Frooti Biscuits BailleyConfectionary

Market Share…..

Penetration

Rural-urban penetration of Biscuit : Urban Market : 75% to 85% Rural Market : 50% to 65% Per capita consumption of Biscuits :

INDIA 1.8 kg, South East Asian Countries 2.5 kg to 5.5 kg USA 7.5 kg

Powerful Facts…..

India is the world's leading market for biscuits, ahead of the US, Mexico, China, Argentina, France, Italy, Germany, Turkey and Spain.

Parle Agro's Frooti is India's first national mango drink & has 85% market share in the tetra pack segment.

Parle believes in selling brand and not the price.

Nearly 1500 wholesalers, catering to 5,00,000 retail outlets directly or indirectly.

Parle’s brand value compels suppliers to sell Parle-G at low commission.

Conducts EDS censuses among its retailers in India to get a clear view of the product availability and visibility and, as a result, improve the products positioning in the market.

Parle Agro – Product Life Cycle

Intro

duct

ory

(Bre

ad C

ake)

Growth

(Fro

oti)

Mat

urity

(Par

le-G

)

Declin

e (A

ppy,

Hid

e&Se

ek)

0

2

4

6

8

10

Product

Lif

e

The immense popularity of Parle products in India was always a challenge to their production capacity.

Parle bisuits and confectionaries are fast gaining acceptance in international markets, such as,Abu Dhabi, Africa, Dubai, South America and Sri Lanka.

Even the more sophisticated markets like USA & Australia,now relish Parle products.

Imports & Exports

1. Raw materials 2. Inventory management The inventory of the company that is the raw material is of a week. They store such inventory in store room and then is sent for testing in laboratory and after testing it is sent for production.

3. Reorder cycle

4. Material handling • Out sourced to k.m.Industries nation wide• Also tied up with the Priya Group to manufacture, supply and package wafers and snacks for its newly-launched brand Full Toss.Under the agreement, Priya will manufacture 3,000 tonne potato chips and snacks annually.

LandThere are 5 mother units and 51 contract manufacturing units in India.

Mother units are in:Mumbai (Maharashtra) Bhadurdgarh (Haryana) Neemrana (Rajasthan) Banglore and Kolkata

The factories at Bahadurgarh and Neemrana are the largest such manufacturing facilites in India.

The average area of manufacturing units is 13 acres

Parle Products also has 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries, on contract.

All these factories are located at strategic locations, so as to ensure a constant output & easy distribution.

THE TECHNOLOGY PARLE USES

Stephan Mixer

The Stephan TK Mixer is a component to automatically feed the down-stream make-up equipment for biscuits, bread, rolls, buns, cake, sweet goods, cookies and crackers.

Key Advantages

Short kneading time and fast ingredient charging: 1000 kg/h to 6000 kg/h depending on the model

Totally unassisted automatic discharge

In a few seconds, all ingredients are homogeneously mixed.

From batch to batch, the doughs will be consistently uniform

The Stephan Mixer Process

The operation can be divided into four phases: 1. Loading2. Mixing3. Kneading4. Discharging

Can be used to produce:Biscuits , Bread sticks, Soda crackers, Rotary cookies, Wire-cut cookies

ROTARY MOULDER

Approximately 10,000 biscuits come out in a minute.

Has 260 cups fitted in it which gives shape to the biscuits and an impression embossed on it of Parle-G.

BISCUIT BAKING OVEN

From rotary moulder the dough is passed through a 260 feet long OVEN which is approximately 340* c.

260 feet long - Parle has the largest baking oven in Asia.

COOLING CONVEYOR

The biscuit coming from stripping conveyor is directed on to the cooling conveyor to transfer the heat in the biscuit to atmospheric air as it is passing on it. It is 2.5 Meters long The supporting side channels are fabricated

from 3mm thick galvanized iron sheets

Finances Revenue for 2012-2013: Rs.

10,000 crore It is a 28% rise over last year’s numbers. 9% operating profit: Rs. 900

crore 3.2% net profit: Rs. 320 crore 90 % of revenue from Parle-

G, Hide-n-Seek and Krackjack.

Finances

Raw material costs: 60% Packaging costs: 20-25% The Parle- G brand alone is

worth 2000 crores. It contributes more than 50% of company’s turnover.

Manufacturing Process

Process

MIXER LAMINATOR

GAUGE ROLLS MOULDER OVEN

COOLING

STACKER

PACKAGING MACHINE

PROCESS FOR MAKING BISCUITS

What Parle does differently??

RAW MATERIAL TESTING

Mixing

MouldingBaking

Cooling

Raw Materials Stephen Mixer

Rotary Moulder

260 feet long oven

260 feet long Cooling Conveyor

Difference

Dispatch

Section

Corrugate Box Secti

on

Sealing

Machine

PolyBag

Multi Pack Wrapping

Auto Feedi

ng Machine

Stalking

Table

Counting unit

Flow Chart

Production Capacity1960

• 160 Tones

2000

• 22000 Tones

2012

• 35000 Tones

Wastage

17%

60%

3%

20% OPERATOR AWAY

MACHINE PROBLEM

DELAY IN MATERIAL

POWER CUT

Another cause of wastage is machinery breakdown. So regular checks on the machines must be adopted.

Wastage

1% wastage comes from Production Capacity

Used for Cattle Feeding

Broken Pieces Are sold for rs.33/kg

The under baked or over baked biscuits are reprocessed by sending them back to the chura store and thus minimizing the wastage.

PARLE PRODUCTS – ‘AN EPITOME OF QUALITY’

The wastage in the plant is least and the production team and the workers try their level best to reduce it even more.The wastage of the biscuits that fall on the floor is minimized by the use of trays under the machinesAlso a PQS test was taken of workers and their average score was 75.86%

Quality“QUALITY, HEALTH AND GREAT TASTE”

“Best product with long lasting freshness”

“Every batch of biscuits and confectionery are thoroughly checked by the expert staff, using the most modern equipments hence ensuring the same perfect quality across the nation and abroad ““HACCP and quality management system which together form an organization's Total Quality Management”Hygiene is the precursor of every process at Parle.

THE CHANNEL MEMBER OF THE DISTRIBUTION NETWORK OF PARLE

1. Parle Depots

2. Wholesalers and Distributors

3. Carry Forward Agents

4. Retailers

INTENSIVE DISTRIBUTION

It is a ideal strategy as it has the following advantages: Increases coverage and sales Increase Product Availability Higher competition leads to narrow

margins for the retail, hence increases the ultimate margin for the manufacturer.

Logistics

Parle has 1500 wholesalers catering to 4,25,000 retail outlets.

200 strong dedicated field force services. 31 depots 1000 carry forward agents supplying

goods to various distribution network.

Levels Of Distribution Channel In Parle

LEVEL 1 Availability of all Parle products in the

various retail stores across the length and breadth of the country.

LEVEL 2 Since it is an FMCG Product this channel

exists for customers scattered throughout the country.

LEVEL 3Mass consumption is suitable for National and International Coverage.

Example:Parle’s international operations consists of serval markets in the Middle East, Africa, Sri Lanka, North America, Australia, South America for which the three level distribution channel exists.

Details of the Delivery Vehicle Light Commercial Vehicle Matador Three Wheeler Van Tricycle Van Push CartThe number and the model of each of the various vehicles have to be furnished to the company.

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