Project Report

CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION ABOUT THE STUDY:

The internship training period of 45 days is great opportunity to me

gather practical knowledge about the functions of the organization. Though

we have theoretical knowledge about the functions of an organization, it is

very difficult practice.

So I happen to know the practical things applied in the organization

through this training and also it provided me with a experience that could

help me to survive in an organization in future.

The internship training I underwent to VELL BISCUITS PRIVATE

LIMITED (A CONTRACT MANUFACTURING UNIT OF ITC) enriched my

knowledge in a practical manner.

In this practical training, I happen to observe that the company is

taking more care about welfare and safety facilities to employee’s

communication and hospitality.

It helped to know the performance of the organization and how it

goes on increasing. And also it may help to know that how to manage the

organization effectively and how to take decision in the organization.

1.2 PROFILE OF INDIAN BISCUIT INDUSTRY:

Indian Biscuits Industry is the largest among all the food industries and

has a turnover of around Rs.3000 crores. India is known to be the second largest

manufacturer of biscuits, the first being USA. It is classified under two sectors:

organized and unorganized. Bread and biscuits are the major part of the bakery

industry and covers around 80 % of the total bakery products in India. Biscuits

stand at a higher value and production level than bread. This belongs to the

unorganized sector of the Industry and covers over 70% of the total production.

Indian Biscuits Industry came into limelight and started gaining a sound

status in the bakery industry in the later part of 20th century when the urbanized

society called for readymade food products at a tenable cost. Now, it has become

one of the most loved fast food products for every age group. The rural sector

consumes around 55% of the biscuits in the bakery products.

The total production of bakery products have risen from 5.19 lakh tonnes

in 1975 to 18.95 lakh tonnes in 1990. Biscuits contribute to over 33% of the

total production of bakery and above 79% of the biscuits are manufactured by

the bakery industry comprising both Factory .and.non-factory.units.

The production capacity of wafer biscuits is 60 MT and the cost is

Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has

occupied around 55-60 percent of the entire bakery production. Few years back,

large scale bakery manufacturers like Cadbury nestle, and Brooke bond tried to

trade in the biscuit industry but couldn't hit the market because of the local

companies.that.produced.only.biscuits.

The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a

bright future of India Biscuits Industry. According to FBMI, a steady growth of

15 percent per annum in the next 10 years will be achieved by the biscuit

industry of India. Besides, the export of biscuits will also surpass the target and

hit the global market successfully.

1.3 PROFILE OF ITC – A Conglomerate:

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.

The Company’s 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'.

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

growth and consolidation of the Cigarettes and Leaf Tobacco businesses .

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

backward integration for ITC's Cigarettes business.

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

a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola' .

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.

In 2004, ITC acquired the paperboard manufacturing facility of BILT

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

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

British joint venture. In August 2002, Surya Tobacco became a subsidiary of

ITC Limited and its name was changed to Surya Nepal Private Limited .

In 1990, ITC acquired Tribeni Tissues Limited and named as the Tribeni

Tissues Division (TTD).TTD was merged with the Bhadrachalam Paperboards

Division to form the Paperboards & Specialty Papers Division in Nov’ 2002.

In 1990, ITC set up the Agri Business Division for export of agri-

commodities. 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.

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. The popular range of notebooks was launched under brand

“Classmate” in 2003. 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 entered new categories in the office

consumable segment with the launch of Text liners, 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 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.

ITC's foray into the Foods business 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.

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. 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.

1.4 PROFILE OF ‘VELL BISCUITS’- A CMU OF ITC:

New India Palmar foods founded in the year 1995-96 casually by some

eleven friends to manufacture biscuits with Brand name of “palmar Biscuits”.

Rated capacity was aimed at 45 MT/month.

After some days; the plant became a conversion plant for “Kwality

Biscuits”, Bangalore and the capacity utilization was @ 250 to 300 Mt per

month.

After Kwality Biscuits, NIPF made biscuits for “Saralee Bakery India”, an

MNC of USA between 2000 & 2001.

Saralee Bakery’s entire salted crache was supplied from NIPF. After

Saralee, Aurofood’s TRUE-MARIE and TRUE NICE were being made at NIPF.

NIPF has a turning point at February 2004 with ITC coming into Biscuit

Market as well into NIPF.

We at NIPF started utilizing the entire capacity of 450 MT/month after

ITC entered. 450 MT was too less quantity for a huge marketer like ITC.

It was decided to expand the capacity. Project was finalized at April 2004,

product rolled out first at May 2005 from the first phase of expansion and at

august 2005 from the second phase of project.

Now we are aimed at a capacity of 120MT/Day. Marching towards the

goal; Day by day in every way we are reaching better and better.

Company name changed as “VELL BISCUITS PVT LTD” from 10 t h Feb’09

onwards.

1.5 VISION:

To sustain our position as one of India's most valuable corporations

through world class performance.

To live by the strong Values of Trusteeship and to nourish internal

Vitality.

To create a growing value for the Indian economy and the Company’s

stakeholders.

1.6 MISSION:

To enhance the wealth generating capability of the enterprise in a

globalising environment.

To deliver superior and sustainable stakeholder value.

1.7 CORPORATE STRATEGIES:

Create multiple drivers of growth by developing a portfolio of world class

businesses that best matches organizational capability with opportunities

in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper,

Paperboards & Packaging, Agri Business and Information Technology.

Enhance the competitive power of the portfolio through synergies derived

by blending the diverse skills and capabilities residing in our businesses.

Create distributed leadership within the organization by nurturing talented

and focused top management teams for each of the businesses .

Continuously strengthen and refine Corporate Governance processes and

systems to catalyze the entrepreneurial energies of management.

CHAPTER – 2

PRODUCTION DEPARTMENT

2.1 CONCEPT OF PRODUCTION:

CONTINUOUS PRODUCTION SYSTEM:

Standardization is the fundamental characteristic of this system. Here

items are produced in large quantities and much emphasis is not given to

consumers orders. In fact the production is to stock and not to order.

Standardization is there with respect to materials and machines.

Uniform and uninterrupted flow of material is maintained through pre

determined sequence of operations required to produce the product. The system

can produce only one type of product at one time.

These days, mass production system is generally used to manufacture sub-

assemblies or particular parts/components of an item. These parts are assembled

together by the enterprise to get the final product.

One distinct advantage of this approach is that different combinations of

sub-assemblies or parts can be used to manufacture different kinds of products.

Specialization and standardization in manufacturing single component

also leads to economies in production and product diversification to meet

specific demands of consumers.

After setting of master production schedule, a detailed planning is carried

on. Basic manufacturing information and bills of material are recorded.

Information for machine load charts, equipment, personnel and material needs is

tabulated.

In continuous manufacturing systems, each production run manufactures

in large lot sizes and the production process is carried on in a definite sequence

of operations in a pre-determined order.

In this process, storage is not necessary which in turn reduces material

handling and transportation facilities. First in first out priority rules are

followed in the system. In short, here the input-output characteristics are

standardized allowing for standardization of operations and their sequence.

2.2 BISCUIT MAKING:

Types of biscuit:

Plain glucose ,

Cracker ,

Digestive ,

Cream Sanwich ,

Wafer ,

Enrobed and Biscuits with Filling.

Basic ingredients for biscuit manufacturing are,

Flour ,

Fat and sugar

Flavours ,

Salts ,

Ammonium and sodium bicarbonte.

Bakery equipments required for biscuit manufacturing

Mixers

Laminator

Dough Distributors

Gauge rolls

Moulder or Cutter

Oven

Packing machine

Sugar, Biscuit Grinders.

Automated Biscuit manufacturing process consists of five steps. They are,

Mixing,

Moulding,

Baking,

Cooling,

Packing .

2.3 PROCESS:

MIXING:

Here, all ingredients are put together in right proportion for dough

formation.These ingredient 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.Dough temperatures is important in biscuit

manufacturing.Normally mixing time is between 10- 15 min and is

performed in two or three stages with different mixing speed .

MOULDING:

Here we laminate the dough into sheet which then passes down to

gauge rollers and sheet thickness is achieved for cutting . Here we have a

cutter or a moulder as per the variety where one gets the shape and sizes

of biscuits. short dough type of biscuit and cutters for sheet variety or

hard dough ,where their speed depends on different variety of biscuit.

BAKING:

Here we pass the moulded wet biscuit into baking oven.The biscuits

are baked on desired temperature .Various type of heating are available as

per the convenience and cost. Heating of biscuit is done by conduction ,

convection and radiation inside the oven. Dampers are provided to control

moisture inside the oven ssection. Normally ovens are classified as 4

zone, 5 zone or 6zone ovens where length varies from 40 mtr to 80 mtrs .

Biscuits are carried on wire mesh band in oven .

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 .The length of conveyor is sometimes 300 - 400 ft .

Cooling conveors can be of two deck or 3 deck type as per space

availability . Natural cooling is prefered over forced cooling as it

maintains the texture quality of biscuit .

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.Packing material used for biscuit packaging are

BOPP ,Laminates ( pearlised or metallised ) ,Pouches .

2.4 FUNCTIONAL LAYOUT:

Plain biscuit process layout:

Wafer biscuit process layout:

CHAPTER 3

FINANCE DEPARTMENT

3.1 CONCEPT OF FINANCE

Financial Management means planning, organizing, directing and

controlling the financial activities such as procurement and utilization of funds

of the enterprise. It means applying general management principles to financial

resources of the enterprise.

3.2 ELEMENTS OF FINANCE

1. Investment decisions includes investment in fixed assets (called as

capital budgeting).Investment in current assets are also a part of

investment decisions called as working capital decisions.

2. Financial decisions - They relate to the raising of finance from various

resources which will depend upon decision on type of source, period of

financing, cost of financing and the returns thereby.

3. Dividend decision - The finance manager has to take decision with

regards to the net profit distribution.

3.3 OBJECTIVES:

1. To ensure regular and adequate supply of funds to the concern.

2. To ensure adequate returns to the shareholders .This depends upon the

earning capacity, market price of the share, expectations of them.

3. To ensure optimum funds utilization. Once the funds are procured, they

should be utilized in maximum possible way at least cost.

4. To ensure safety on investment, i .e, funds should be invested in safe

ventures so that adequate rate of return can be achieved.

5. To plan a sound capital structure-There should be sound and fair

composition of capital so that a balance is maintained between debt and

equity capital.

3.4 FUNCTIONS:

1. Estimation of capital requirements:  A finance manager has to make

estimation with regards to capital requirements of the company. This will

depend upon expected costs and profits and future policies of a concern.

Estimations should increase earning capacity of enterprise.

2. Determination of capital composition:  Once the estimation has been

made, the capital structure have to be decided. This involves short- term

and long- term debt equity analysis. This will depend upon the proportion

of equity capital a company is possessing and additional funds which have

to be raised from outside parties.

3. Choice of sources of funds:  For additional funds to be procured, a

company has many choices like-

a. Issue of shares and debentures

b. Loans to be taken from banks and financial institutions

c. Public deposits to be drawn like in form of bonds.

4. Investment of funds:  The finance manager has to decide to allocate funds

into profitable ventures so that there is safety on investment and regular

returns is possible.

5. Disposal of surplus:  The net profits decision has to be made by the

finance manager. This can be done in two ways:

a. Dividend declaration - It includes identifying the rate of dividends

and other benefits like bonus.

b. Retained profits - The volume has to be decided which will depend

upon expansion, innovation, diversification plans of the company.

6. Management of cash:  Finance manager has to make decisions with

regards to cash management. Cash is required for many purposes like

payment of wages and salaries, payment of electricity and water bills,

payment to creditors, meeting current liabilities, maintenance of enough

stock, purchase of raw materials, etc.

CHAPTER 4

MARKETING DEPARTMENT

4.1 CONCEPT OF MARKETING:

Marketing is the process by which companies determine what products or

services may be of interest to customers, and the strategy to use in sales,

communications and business development.

It generates the strategy that underlies sales techniques, business

communication, and business developments. It is an integrated process through

which companies build strong customer relationships and create value for their

customers and for themselves.

Marketing is used to identify the customer, satisfy the customer, and keep

the customer. With the customer as the focus of its activities, it can be

concluded that marketing management is one of the major components of

business management.

Marketing evolved to meet the stasis in developing new markets caused by

mature markets and overcapacities in the last 2-3 centuries. The adoption of

marketing strategies requires businesses to shift their focus from production to

the perceived needs and wants of their customers as the means of staying

profitable.

The term marketing concept holds that achieving organizational goals

depends on knowing the needs and wants of target markets and delivering the

desired satisfactions

It proposes that in order to satisfy its organizational objectives, an

organization should anticipate the needs and wants of consumers and satisfy

these more effectively than competitors.

4.2 PRODUCT LINE:

Fast Moving Consumer Goods:

Cigarettes W. D. & H. O. Wills , Gold Flake Kings , Gold Flake Premium,

Navy Cut, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush,

Regular, Mild & Ultra Mild) , 555, Benson & Hedges, Silk Cut, Scissors,

Capstan, Berkeley, Bristol , Lucky Strike, Players and Flake.

Foods: (Kitchens of India ; Ashirvaad ; Minto ; Sunfeast ; Candyman ; Bingo ;

Yippee, Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits,

Confectionery, Noodles and Snack Foods);

Apparel: (Wills Lifestyle and John Players brands);

Personal care: (Fiama di Wills ; Vivel ; Essenza di Wills ; Superia ; Vivel di

Wills brands of products in perfumes, haircare and skincare) [ 2 ]

Stationery: (Classmate and Paperkraft brands)

Safety Matches and Agarbattis: [Ship (through ownership of WIMCO );

iKno; Mangaldeep; Aim brands]

Other businesses include:

Hotels : ITC's hotels (under brands including ITC Hotel /Welcomhotel)

have evolved into being India's second largest hotel chain with over 80

hotels throughout the country. ITC is also the exclusive franchisee in

India of two brands owned by Sheraton International Inc.- The Luxury

Collection and Sheraton which ITC uses in association with its own

brands in the luxury 5 star segment. Brands in the hospitality sector

owned and operated by its subsidiaries include Fortune and

Welcomheritage brands.

Paperboard, Specialty Paper, Graphic and other Paper;

Packaging and Printing for diverse international and Indian clientele.

Infotech (through its fully owned subsidiary ITC Infotech India Limited

which is a SEI CMM Level 5 company)

FIGURE 4.1 ITC PRODUCT LINE

FIGURE 4.2 ITC BRANDS IN FOOD DIVISION

4.3 PRODUCT MIX:

TABLE 4.1 MARKETING MIX

The product of the firm varies in coincidence with the Product line. As far

as ITC is Concerned, products are served as Goods and Services.

The Price of each Product is Determined by our Pricing policy and they

may vary according to the fiscal policy of the Government.

The Manufacturing process takes place in our own factories and many

Contract Manufacturing Units. There are also factory outlets and retails outlets

are available throughout the nation. They are supplied with our products through

our Marketing channels.

Promotional Activities are done through our Sales force. This Contributes

to the Sales Promotion and other promotional activities include Advertising,

Awareness programmes,etc.

4.4 MARKETING STRATEGIES:

SEGMENTATION:

PRODUCT PRICE PLACE PROMOTION

Product variety & Quality

Last Price Sales Promotion

Channels

Design & Features

Discounts Advertising Coverage

Brand name & Packaging

Allowances Sales Force Assortments

Sizes & Services

Payment period Public relation Locations& Inventory

Warranties & Returns

Credit terms Direct Marketing

Transport

Creating brands from scratch with no history and lineage,ITC used

clear segmentation across its five product lines and the target audience,each

brand was meant for.

GROUP SYNERGY:

Once the five products were created and communication strategies set,

ITC leveraged its properties like hotels, foods and apparel store network to

retail these brands.

COMMUNICATION STARATEGY:

Like HUL, these brands sport Western names, and different

communication.Essenza & Fiama, meant for the elite, have English

communication, while Vivel &Superia use Hindi.

BRAND EXTENSIONS:

Selective extensions as it does not want to confuse consumers with too

many irrelevant brand extension & sub-brands. The Essenza range is the only

exception.

BRAND AMBASSADORS:

ITC uses brand ambassadors strategically.While for the Fiama and Vivel

ranges it has roped in brand ambassadors, for the Superia & Essenza ranges the

key TG is the real king.

PACKAGING:

Since packaging plays a key role in product differentiation,ITC uses it to

the hit. It has taken foreign experts’ help to make its products stand out from

competition.

CHAPTER 5

HUMAN RESOURCE DEPARTMENT

5.1 CONCEPT OF HRM:

Human resource management is the management of an organization's

employees. This includes employment and arbitration in accord with the law,

and with a company's directives.

Human Resource Management techniques force the managers of an

enterprise to express their goals with specificity so that they can be understood

and undertaken by the workforce and to provide the resources needed for them

to successfully accomplish their assignments. As such, HRM techniques, when

properly practiced, are expressive of the goals and operating practices of the

enterprise overall. HRM is also seen by many to have a key role in risk

reduction within organizations.

5.2 HR OBJECTIVES:

The primary objective is to nurture a culture of meritocracy amongst a

committed and enthusiastic workforce from diverse backgrounds. In the pursuit

of this objective, the following goals have been set for the consecutive five

years:

All ITC's Units, which are already 'beyond compliance' in all areas related

to labour practices, will continue to be so.

Ensure that the Company's record of attraction and retention of talent is

superior to other companies in the comparative sample.

Enable employees to perform to their fullest potential to add value to the

enterprise, nation and themselves.

Enhance the Company's employee value proposition so that ITC retains its

position as an employer of choice.

Endeavour to eliminate accidents and injuries both onsite and offsite.

5.3 HR POLICY:

ITC is committed to employee engagement that upholds individual dignity

and respects human rights. ITC's employment practices are premised on

attracting and retaining talent based only on merit. Its capability development

agenda ensures the deepening and enhancement of skills of all its employees

through customized training and development inputs. All ITC employees operate

in a work environment that is benchmarked internationally for the quality of its

safety and health standards.

5.4 RESPONSIBILITY:

It is the overall responsibility of the Divisional Chief Executives, through

the members of their Divisional Management Committees, Human Resources and

EHS Functions, to ensure that employment and EHS practices in all Units are in

accordance with the policy outlined above and to ensure total compliance with

all statutory provisions governing labour practices and decent work.

Specific responsibilities are assigned to different individuals based on the

roles being performed by them. The Corporate Human Resources and EHS

functions are responsible for reviewing and updating standards and guidelines

on labour and EHS policies, employment practices, and for providing guidance

and support to all concerned.

The Company leadership 'walking the talk' and a relentless focus on

implementing the policy underlines the Company's approach to employment

practices and creating a decent work environment.

The Human Resources and EHS functions of each business are the primary

custodians of ITC's labour and EHS policies and employment practices, the

implementation of which is reviewed periodically at the Unit and the Divisional

levels.

The Corporate Human Resources and EHS functions provide specialist

services to assist in the implementation and monitoring of the same. The multi-

layered and multi-dimensional audit framework of the Company also helps in

monitoring compliance with laid down policies and statutory regulations.

5.5 TRAINING & AWARDS:

The policy is shared with employees and potential employees through

training programmes, communication sessions, the Company portal, intranet

sites and pre-placement presentations. Managers from HR, EHS and Engineering

departments are provided regular training for effective implementation of these

policies.

Monitoring & Follow-up:

The Human Resources and EHS staff members of the Divisions regularly

monitor progress to ensure proper implementation of these policies, while the

Unit Heads and the Divisional Management Committees follow-up periodically

to ensure full compliance. The Corporate EHS Department undertakes regular

audits of the Units.

Awards:

A number of awards for excellence in Human Resources and EHS

management and practices bear testimony to ITC's commitment to Human

Resource Development and EHS and to best-in-class employment practices.

Context: High standards of employment and EHS practices enhance the

Company's performance, help in the attraction and retention of quality talent,

and enhance the equity of the Company as a responsible employer.

5.6 KEY PEOPLE:

NAME DESIGNATION

Y.C.DEVESHWAR Chairman

KURUSH GRANT Executive Director

P. DHOBALE Executive Director

NAKUL ANAND Executive Director

RAJIV TANDON Chief Financial Officer

NAKUL ANANDExecutiveDirector

P. DHOBALEExecutiveDirector

KURUSH GRANTExecutiveDirector

Y.C.DEVESHWARChairman

EXECUTIVE(HRM)

BRANCHMANAGER

(HRM)

ZONAL MANAGER(HRM)

GENERALMANAGER

(HRM)

AUDITOR

BRANCHMANAGER(FINANCE)

ZONAL MANAGER(FINANCE)

GENERALMANAGER(FINANCE )

SUPERVISOR

BRANCHMANAGER

(FACILITIES )

ZONAL MANAGER(R&D)

GENERALMANAGER

(MAINTENANCE)

SUPERVISOR

BRANCHMANAGER

(PRODUCTION)

ZONAL MANAGER(PRODUCTION)

GENERALMANAGER

(OPERATIONS )

EXECUTIVE(MARKETING)

BRANCHMANAGER

(MARKETING)

ZONAL MANAGER(MARKETING)

GENERALMANAGER

(MARKETING)

DGM(HRM)

DGM(FINANCE)

DGM(MARKETING)

DGM(OPERATIONS )

DGM(MAINTENANCE)

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FIGURE 5.2 EMPLOYEE STRENGTH AT PUDUCHERRY PLANT OF ITC

DESIGNATION NUMBER OF EMPLOYEES

ADMINISTRATION 26

FINANCE 19

HRD 12

PRODUCTION:

Packing machine supervisors 18

Packing machine operators 58

Packing machine mechanics 40

Mixing 27

Oven 12

Line cutters 22

Lab workers 66

BSR 10

MAINTENANCE:

Stores 22

Commercial 30

General 21

molding 34

Contract labours 76

TOTAL 493

CHAPTER – 6

MAINTENANCE DEPARTMENT

6.1 CONCEPT OF MAINTENANCE:

Our Company is committed to delivering world-class products and

services. This requires a clear focus on continuously striving to create a higher

value to customers by achieving excellence in all Company's operations.

Business excellence calls for a passionate focus on technology, products,

services, processes and an operating environment firmly anchored to an

impregnable foundation of Quality.

We firmly believe that quality is not a specifically assignable task. It

needs to be firmly rooted and institutionalized in the culture and value system of

the Company. We nurture a culture of striving for continuous improvement in

quality, be it in products, services, systems or performance. The Company is

committed to the establishment of systems and processes to promote

organisational creativity and innovation.

Our development of Integrated Quality Management System (IQMS) is based on

its strong foundation of participative management concepts like QC (Quality

Control), TQM (Total Quality Management), KSS (Kaizen Suggestion Scheme),

5S, Six Sigma.

All ITC manufacturing units have ISO quality certification. Almost all contract

manufacturing units in the Foods Business and all large hotels have food safety

and quality systems certified by accredited ' third party' in accordance with

'Hazard Analysis Critical Control Points' (HACCP) standards. Additionally, the

quality of all FMCG products of the Company is regularly monitored through

'Product Quality Rating System' (PQRS).

6.2 INTEGRATED QUALITY MANAGEMENT:

ISO 9001:2000

ISO 9001 is the internationally recognised standard for the quality

management of businesses. It applies to the processes that create and control the

products and services an organisation supplies, prescribes systematic control of

activities to ensure that the needs and expectations of customers are met . It is

designed and intended to apply to virtually any product or service, made by any

process anywhere in the world

ISO 14001

ISO 14001 is the internationally recognised standard for the

environmental management of businesses. It prescribes controls for those

activities that have an effect on the environment. These include the use of

natural resources, handling and treatment of waste and energy consumption.

OHSAS 18001

OHSAS 18001 is the latest certification specification for Occupational

Health and Safety Management Systems. It is based on already published criteria

such as BS 8800 and the Management Regulations 1992. OHSAS 18001 is an

audit/certification specification, not a legislative requirement or a guide to

implementation.

SA 8000

SA8000 is a global social accountability standard for decent working

conditions, developed and overseen by Social Accountability International

(SAI).SAI offers training in SA8000 and other workplace standards to managers,

workers and auditors. It contracts with a global accreditation agency, Social

Accountability Accreditation Services (SAAS) that licences and oversees

auditing organisations to award certification to employers that comply with

SA8000.

HACCP

HACCP is a systematic preventive approach to food safety and

pharmaceutical safety that addresses physical, chemical, and biological hazards

as a means of prevention rather than finished product inspection. HACCP is used

in the food industry to identify potential food safety hazards, so that key

actions, known as Critical Control Points (CCPs) can be taken to reduce or

eliminate the risk of the hazards being realized. The system is used at all stages

of food production and preparation processes including packaging, distribution,

etc.

IQRS:

IQRS is a Quality Auditing System. The Leaf Tobacco and Printing &

Packaging businesses have achieved world-class ratings in the 'International

Quality Rating System' (IQRS) for business excellence in which key processes

are rated against international benchmarks and certified by accredited ' third

party' independent assurance providers.

6.3 INVENTORY MANMAGEMENT:

For inventory management in Puducherry plant of ITC, certain

things are considered which are completely practical-

As market generally fluctuates so if there is any perception of the increment

in the price level of any commodity in future then that particular

commodity is stored.

All the materials of the mixture, which is used in making biscuits, can be

stored maximum only for 3 days. Because store of plant is designed like

this that more than 3 days storage can’t be maintained in it .

Minimum levels of inventories are maintained in plant in wake of lead-time,

govt. policies, and one-day safety stock for transportation problem.

Re-order levels of inventories are maintained in the plant in wake of per

day consumption level of inventories and lead-time in days.

6.4 WASTE MANAGEMENT:

This is a newer approach to cost-effective food-processing waste disposal.

Through waste management, modifications are applied to biscuit plant operation

and manufacturing processes. These modifications reduce the amount of solid

and liquid wastes, recover more product and by-product, often reduce energy

consumption and ezhibit other benefits. In general, the principle is to convert

waste liabilities into profitable assets.

One major objective of waste management is to eliminate or at least

lessen the dependence upon end-of-the-pipe sanitary engineering methods. This

is achieved by reducing both the amount of waste solids generated and the

volume of the waste water discharged

The following are the modifications, which are made in our biscuit plant:

1) Incorporating good manufacturing practices

2) Collecting culls and other solid wastes into containers rather than

discharging to the floor drain.

3) Recycling water, reusing spent process water in another plant operation.

4) Using less or no water in plant operations that formerly used a fair to a

large amount of water.

Good manufacturing practices that reduce water usage and waste require good

personnel management and employee awarneness of conservation practices.

Such practices as needless use of water or overloading of containers, thereby

causing spillage,should be discouraged.

Recycling of water in the same plant operation can be achieved by

treating spent process water with activated charcoal or sand filter of by ion-

exchange columns, chemical treatment, pH adjustment,temperature adjustment,

pasteurisation, or a combination of these and other methods.

Counter currents water reuse systems can be established in many plant

operations.

CHAPTER 7

SWOT ANALYSIS

7.1 CONCEPT OF SWOT ANALYSIS:

SWOT analysis is a strategic planning method used to evaluate the

S trengths, Weaknesses, Opportunities, and Threats involved in a project or in a

business venture. It involves specifying the objective of the business venture or

project and identifying the internal and external factors that are favorable and

unfavorable to achieve that objective. The technique is credited to Albert

Humphrey, who led a convention at Stanford University in the 1960s and 1970s

using data from Fortune 500 companies.

ITC Ltd., is one of the India’s largest multinational corporate enterprises.

It was registered in ‘Calcutta’ with a small office in Radhabazar Lane, with one

expatriate manager and one acquired cigarette manufacturing facility in Munger,

in 1910. Now, ITC is one of India's biggest and best-known private sector

companies. In fact it is one of the World's most high profile consumer

operations organisations.

7.1 STRENGTHS:

The organisation has some major strengths that give it a competitive advantage

over its rivals.

1. Strong Financial Performance:

On 31st march, 2010, ITC’s market cap was Rs. 114000 crores with a

Gross income of Rs. 26,863 crores and Profit after tax of Rs. 4061 crores. The

company continues its impressive record of financial performance.

2. Products Portfolio:

ITC’s portfolio of products and services is represented by over 50

energetic Brands in a range of more than 650 stock keeping units (SKUs).

3. Distribution Network:

ITC’S products are available in over 6 million retail outlets in the

country. Its formidable Distribution organisation directly services more than 2

million of these retail outlets.

It used its experience of transporting and distributing tobacco products to

remote and distant parts of India to the advantage of its FMCG products.

4. Environmental Friendly:

ITC has a status of being ‘Water Positive’ for the 8th consecutive year,

‘Carbon Positive’ for the 5th year in succession and ‘solid waste recycling

positive’ for 3 years in a row.

ITC is the only enterprise in the world of its size to have achieved and

sustained these three global environmental distinctions.

As consumers and investors become more environment friendly, these

considerations will provide the organisation an opportunity to create USPs and

stronger brand loyalty and brand equity.

5. Research & Development:

ITC recognises that cutting edge R&D can foster breakthrough innovation

and create powerful sources of sustainable competitive advantage.

This vision has led to the establishment of a state of the art R&D centre at

Bengaluru with over 50 world- class scientists. Its R&D program will create new

game changing business opportunities.

6. Socially Responsibility:

ITC’s initiatives to build social capital through extensive community

engagement have led to the creation of sustainable livelihood opportunities for

over 5 million people.

ITC has helped create more than 20,000 rural women entrepreneurs. ITC’s

supplementary education initiative has reached out to over 200000 school

children in rural areas.

ITC’s value chain supports over 5 million livelihoods.

7. Brand Equity:

ITC is one of the best known brands in India and it dominates the market

with a huge interest towards and from the Public.

8.New Product Development:

ITC leveraged it traditional businesses to develop new brands for new

segments.

For example, ITC used its experience of transporting and distributing

tobacco products to remote and distant parts of India to the advantage of its

FMCG products.

The above factors express the positive points about the company and it

would definitely make the company a strong corporate organisation.

7.2 WEAKNESSES:

In spite of several strengths, there remain some areas of weakness and

concern for the organisation.

1. Dependency on the tobacco business:

To fund its cash guzzling FMCG start-up, the company is still dependent

upon its tobacco revenue. Cigarettes account for 47% of the company’s turnover

and for 80% of its profits.

So there is an argument that ITC’s move into FMCG is being subsidised

by its tobacco operations.

2. Not present in many important sectors:

Although ITC is a diversified company trading in a number of business

sectors such as cigarettes, hotels, paper, agriculture, packaged foods and

confectionary, branded apparel, personal care and other FMCG products,

greeting cards, Information Technology, safety matches, incense sticks and

stationery etc.

Yet, it does not have presence in many important sectors such as

insurance, infrastructure, banking and financial services, BPO, telecom,

automotive etc. and thus becomes comparatively weak when compared with

other conglomerates like the Bharti group, the Tata group and the Ambani

groups.

3. Local Company:

ITC is a local company. It does not have a large portfolio of exports in

either products or services. This makes the company comparatively weak in

terms of being able to leverage global opportunities, talent & financing.

The above represent some of the major weaknesses the company has at

present and it is clearly understood that these wealnesses are temporary and they

can be rectified very soon.

7.3 OPPORTUNITIES

1. Leveraging its brand equity

ITC’s products & services are of high quality. If ITC enter into any

business or launch any product, consumer know its ITC’s product, consumers

shall trust these to be of good quality. ITC’s brand equity would make ITC

successful in most sectors.

2. Right size at the right time:

A corporate must have the right organisational and investment capability

and this must coincide with a growth stage in the economy in which it operates.

This seems to be a perfect setting for ITC.

3. Penetrating into new Sectors:

ITC is moving into new and emerging sectors including Information

Technology, supporting business solutions.

4. e-Choupal:

e-Choupal is a community of practice that links rural Indian farmers using

the Internet. This is an original and well thought of initiative that could be used

in other sectors in many other parts of the world. It is also an ambitious project

that has a goal of reaching 10 million farmers in 100,000 villages.

5. Per capita consumption:

Per capita consumption of personal care products in India is the lowest in

the world offering an opportunity for ITC's soaps, shampoos and fragrances

under their Wills brand.

7.4 THREATS:

1.Raising Competition:

The obvious threat is from competition, both domestic and international.

The laws of economics dictate that if competitors see that there is a solid profit

to be made in an emerging consumer society that ultimately new products and

services will be made available.

2.Nature of Business:

ITC's opportunities are likely to be opportunities for other companies as

well. Therefore the dynamic of competition will alter in the medium-term. Then

ITC will need to decide whether being a diversified conglomerate is the most

competitive strategic formation for a secure future.

3.Risk Involved:

ITC was incorporated on August 24, 1910 .Its beginnings were humble.

But, today, the raising expenses and the invesments has high risks, obviously.