A Summer Training Report ON Working Capital Management CONDUCTED AT PARLE BISCUITS PRIVATE LIMITED Submitted in partial fulfillment for the Award of degree of MASTER OF BUSINESS ADMINISTRATION (SESSION 2010-2012) SUBMITTED BY: SUBMITTED TO: ASHISH KUMAR DIRECTOR MBA –2 ND YEAR JECRC 1
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A Summer Training Report
ON
Working Capital Management
CONDUCTED AT
PARLE BISCUITS PRIVATE LIMITED
Submitted in partial fulfillment for the Award of degree of
MASTER OF BUSINESS ADMINISTRATION (SESSION 2010-2012)
SUBMITTED BY: SUBMITTED TO:
ASHISH KUMAR DIRECTOR
MBA –2ND YEAR JECRC
JECRC School of Management
JAIPUR
APPROVED BY
RAJASTHAN TECHNICAL UNIVERSITY, KOTA
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DECLARATION
I, Roll No Class of the JECRC
School of Management here by declared at the project entitled
is an original work and the same has
not been submitted to any other institute for the award of any other degree. The interim
was presented to the supervisor on and the pre submission presentation
was made on ____________. The feasible suggestions have been only incorporated in
consultation with the supervisor.
Countersigned
Signature of the Supervisor
Forwarded By Signature of the candidate
Director/Principal of the Institute
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TABLE OF CONTENTS
ACKNOWLEDGMENT 4
PREFACE 5
INTRODUCTION* HISTORY OF COMPANY 6* PRODUCT PROFILE 18
MANAGERIAL USEFULNESS OF STUDY 49
CONCEPTS USED IN STUDY 50
FOCUS OF THE PROBLEMS 51
OBJECTIVES OF THE PROJECT 52
SCOPE OF THE WORK 54
RESEARCH METHODOLOGY 55 * RESEARCH DESIGN
* COLLECTION OF DATA
DATA ANALYSIS 60
FINDINGS 74
RECOMMENDATION 76
LIMITATIONS 77
CONCLUSIONS
BIBLIOGRAPHY 79
ANNEXURE 80
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ACKLNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task
would be, but incomplete without mentioning the people who made it possible, whose
constant guidance encouraging crowned my effort with success.
I would like to begin with a special note of gratitude and heartfelt thanks to Mr. Vijay
k. chauhan, chairman, who gave me the opportunity to complete my summer project
at PARLE BISCUITS PRIVATE LIMITED, NEEMRANA.
I am extremely grateful to the Deputy Manager of Finance Department Mr.
JAIDEEP BHALA for his constant encouragement and valuable suggestions
throughout my summer training and project for his cooperation extended to me.
I express my special thanks to Ms. LALITA (HR MANAGER), Mr. GIRISH
CHAND BHATI (Assistant HR manager) for giving me their valuable opinions time
to time.
At last but not the least, I am very thankful to all the staff members of I.T. department
also.
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PREFACE
Practical work experience is the integral part of individual learning. An individual who
is learning managerial concepts has to undergo this practical experience for being a
future executive.
Master of Business Administration is a two-year programme that inserts management
knowledge in an individual to make that individual completely professional for which
practical experience is must.
Parle Biscuits Pvt. Ltd. is the market leader in biscuit industry. Neemrana plant of PBPL
offered me a project on Working Capital Management to understand the current position
through dates provided by them.
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HISTORY OF COMPANY
INTRODUCTION
Parle-G or Parle Glucose biscuits, manufactured by Parle Products Pvt
Ltd, are one of the most popular biscuits in India. Parle-G is one of the oldest brand
names as well as the largest selling brand of biscuits in India. For decades, the product
was instantly recognized by its iconic white and yellow wax paper wrapper with the
depiction of a young girl on the front. Counterfeit companies have attempted to recreate
and sell lower quality products of similar names with virtually identical package
design.The company's slogan is G means Genius. The name, "Parle-G", is derived from
the name of the suburban rail station, Vile Parle which in turn is based on village Parle
in olden days (there is also area called Irle nearby where the Parle Agro production
factory is based).This popular biscuit is primarily eaten as a tea-time snack.
Parle-G is the largest selling biscuit in the world. It has 70% market share in India in the
glucose biscuit category followed by Britannia, Tiger (17-18%) and ITC's Sunfeast (8-
9%). The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and
contributes more than 50 per cent of the company's turnover (Parle Products is an
unlisted company and its executives are not comfortable disclosing exact numbers). Last
fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across the
world and is starting to sell in Western Europe and USA.
Parle products have been shining with the golds and silvers consistently at the Monde
Selection ever since they were first entered in 1971. Monde Selection is an international
institute for assessing the quality of foods and is currently the oldest and most
representative organization in the field of selecting quality foods worldwide.
Almost all of our products are market leaders and as recognition of their quality, have won us 111 gold, 26 silver and 4 bronze Monde Selection medals since 1971.
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HOW PARLE FOUGHT TO MAKE BISCUITS AFFORDABLE TO ALL
Biscuits were very much a luxury food in INDIA, when Parle began production in 1939.
Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands.
However, during the Second World War, all domestic production was diverted to assist
the Indian Soldiers in India and Far East. Apart from this, the shortage of wheat in those
days, made Parle decide to concentrate on the more popular brands, so that people could
enjoy the price benefits.
Thankfully today, there’s no dearth of ingredients and the demand for more premium
brands is on the rise. That’s why; we now have a wide range of biscuits mouthwatering
confectioneries to offer.
THE QUALITY COMMITMENT
Parle Product Private Limited has 3 manufacturing plants –
1) VILE PARLE in Mumbai (Maharashtra)
2) BHUJ (Gujarat)
3) BANGLORE (Karnataka)
Apart these plants Parle Product Pvt. Ltd. maintain 20 contract base manufacturing units
in all over INDIA. These plants and CMU’s produce sweets and confectionary products.
Parle Product Pvt. Ltd. has also a subsidiary company, which is Parle Biscuit Pvt. Ltd.
This subsidiary company produces only biscuits. It also has 2 manufacturing plants –
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1) BAHADURGARH in Gurgaon (Haryana)
2) NEEMRANA in Alwar (Rajasthan)
Apart these two plants Parle Biscuit Pvt. Ltd. maintain 11 contract base manufacturing
units on different locations, which produce only biscuits.
All these factories are located at strategic locations, so as to ensure a constant output &
easy distribution. Each factory has state-of-the-art machinery with automatic printing &
packaging facilities.
All Parle products are manufactured under the most hygienic conditions. Great care is
exercised in the selection & quality control of raw materials; packaging materials &
rigid quality standard are ensured at every stage of the manufacturing process. Every
batch of biscuits & confectioneries are thoroughly checked by expert staff, using the
most modern equipment.
THE MARKETING STRENGTH
The extensive distribution network built over the years is a major strength for Parle
Products. Parle biscuits and sweets are available to consumer even in the most remote
places and in the smallest of villages with a population of just 500.
Parle Has nearly 1500 wholesalers catering to 4,25,000 retail outlets directly or
indirectly. A two hundred strong dedicated field force services these wholesalers and
retailers. Additionally there are 40 depots and C&F agents supplying goods to the wide
distribution network.
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The Parle marketing philosophy emphasizes catering to the masses.
We constantly endeavor at designing products that provide nutrition & fun to the
common man. Most Parle offerings are in the low & midrange price segments. This is
based on our cultivated understanding of the Indian consumer psyche. The value for
money positioning helps generate large sales volumes for the products.
Parle-G it’s first venture became an instant favorite amongst the masses, leading the
glucose category with a huge market share of 65%. It topped charts worldwide by
becoming the WORLD’S LARGEST BISCUIT SELLING BRAND as revealed by
the US-BASED BAKERY MANUFACTURES ASSOCIATION in 2002.
THE CUSTOMER CONFIDENCE
The Parle name conjures up fond memories across the length and breadth of the country.
After all, since 1929, the people of India have been growing up on Parle biscuits &
sweets.
Today, the Parle brands have found their way into the hearts and homes of the people of
all over India & abroad. Parle Biscuits & Confectioneries, continue to spread happiness
& joy among people of all ages.
The consumer is the focus of all the activities of Parle. Maximizing value to consumers
and forging enduring customer relationships are the core endeavors at Parle.
Our efforts are driven towards maximizing customers’ satisfaction and this is in synergy
with our quality pledge. “Parle Products Limited will strive to provide consistently
nutritious & quality food products to meet consumers’ satisfaction by using quality
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materials and by adopting appropriate processes. To facilitate the above we will strive to
continuously train our employee and to provide them an open and participative
environment. “
EMERGING TRENDS OF THE BRAND
Since its inception in the 30’s Parle biscuits have prided itself in offering quality
products that are affordable to the common man. The marketing mix has evolved with
the times…
THE PRODUCT
Parle biscuits have a range of variants in its product portfolio. The popular brands
Parle-G, Krackjack, Monaco and its variants (zeera, onion and methi) are available in
packets of various convenient sizes. New products like Hide & Seek are a foray into the
premium segment.
THE PRICING STRATEGY
This biscuit major has not bothered to raise the price of its flagship brand “Parle-G” for
the past 6-8 years and has always tried to provide its offerings at nearly 33% discount as
compared to other competitive brands.
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THE PROMOTION POLICY
The consumer is the focus of all activities at Parle. Maximizing value to consumers and
forging enduring customer relationships are the core endeavors at Parle. Parle-G ‘My
Dream Comes True Contest’ was one of its biggest promotional ventures (2.5 crores)
which gave contestants a chance to fulfill their dreams. Discounts, gift offer schemes are
other popular promotional offerings.
THE PLACE
A well-entrenched distribution system (the company covers 12-15 lacks outlets across
the country) with 40 depots at strategic points all over the country. From the depots, the
biscuits are sold to wholesalers and further to retailers.
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PARLE BISCUITS PRIVATE LIMITED (NEEMRANA)
Parle Biscuit Pvt. Ltd. is a subsidiary of Parle Product Pvt. Ltd.
The manufacturing at Neemrana unit started in 1982 for Parle-G with a single plant. It
is planted in near about 16 acres of land.
Including General Manager 78 employees of Managerial and Officer
class are working in this plant. Production is going on in this plant 24 hours in three
shifts. Number of permanent workers of thrice shifts is 680 and around 400 workers are
there on contract basis.
In 1990’s Krackjack production began followed by Monaco and Nimkin. Average
Production capacity of Neemrana unit per month is-
1) Parle-G 3500 Metric Tonnes
2) Krackjack 1600 Metric Tonnes
3) Monaco 800 MetricTonnes
The plant works in coordination with the Mumbai office, Neemrana (Rajasthan).
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DEPARTMENTS IN PLANT
FINANCE
HR & PERSONNEL
QUALITY ASSURANCE
PRODUCTION & PRINTING
EXCISE & DESPATCH
ENGINEERING
I.T.
PURCHASE
STORE
The organization follows a flat structure with less hierarchal levels. The heads of the
different departments report to the General Manager through direct communication.
The working atmosphere is not stressful with enough work-flexibility given to staff and
managers.
The plant also has auditorium and viewing gallery, which is used during the visit of
school children. A retail shop at the Plant provides Parle Products at M.R.P. rates.
Parle-G Making Process
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MIXING:
This is a process where all ingredients are put together in right proportion for dough
formation. These ingredients are then fed into Mixers where mixing is done and dough
is prepared for molding .Major ingredients are flour, fat, sugar and others as per the
product one would like to have.
MOULDING:
In this section we laminate the dough into sheet which then passes down to gauge rollers
and sheet thickness achieved for cutting. Here we have a cutter or a molder as per the
variety where one gets the shape and sizes of biscuits.
BAKING:
This is the area where we pass these mounded wet biscuit into baking oven. The oven
temperature is 230°C. The biscuits are baked on desired temperature. The oven which
are use very effective.
COOLING:
These baked biscuits are then passed on to cooling conveyors for natural cooling prior
to packing .The temperatures are brought down to room temperatures.
PACKING:
These biscuit are then stacked and fed into packing machine for packing. Different
packing material are available for packing of these biscuit in different packs .slug packs,
pouch pack or family packs etc. These packs are then put into secondary packaging like
cartons to be transported to retailers.
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EQUIPMENT USED FOR AUTOMATED BISCUIT MANUFACTURING
Mixers Laminators Gauge Rolls or Pre Sheeters Molder / Cutter Baking Oven Cooling
Conveyor Packing
Machines Material Handling Equipments Biscuit / Sugar Grinder Milk/Oil