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Dedication...
Gratitude in the beginning. Good business
leaders create a vision, articulate the vision and
passionately own the vision. And to achieve these,
we need supreme proponent, guide, motivator that
are our teachers.
Genuinely thanks to all teachers who
manipulated us for moving forward.
I dedicate this report to my family, friends and
teachers without whom it was almost impossible for
me to complete this report.
Samir
PROJECT REPORT
ON
MANAGEMENT OF AGRO-BASED INDUSTRIES IN
“MAPRO FOODS PVT. LTD.”
AT
SHENDURJANE (WAI), SATARA
By
Mr. SAMIR SHAIKHLAL PATHAN
(Reg. No. BAB021/2016)
Submitted to
MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI
DIST. AHMEDNAGAR (MH)
In partial fulfilment of the requirement for the degree of
BACHELOR OF BUSINESS ADMINISTRATION
(AGRICULTURE)
COLLEGE OF AGRICULTURE BUSINESS
MANAGEMENT, BARAMATI - 413 115
2019-20
MANAGEMENT OF AGRO BASED INDUSTRIES IN
“MAPRO FOODS PVT. LTD.”
AT
SHENDURJANE (WAI), SATARA
A Project Report submitted to the
MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI
DIST.AHMEDNAGAR (MH)
In partial fulfillment of the requirement for the degree of
BACHELOR OF BUSINESS ADMINISTRATION
(AGRICULTURE)
By
Mr. SAMIR SHAIKHLAL PATHAN
(Reg. No. BAB021/2016)
Approved by Advisory Committee
Dr. B. N. PAWAR
DI’s Nominee
Prof. A.R.Kale
Coordinator
Prof. R. M. Takale
Module In-charge
Prof. P.L.Kolekar
Committee Member
Prof. R. B. Shinde
Committee Member
Prof. S.S.Walke
Committee Member
COLLEGE OF AGRICULTURE BUSINESS MANAGEMENT,
BARAMATI - 413 115
(Maharashtra)
2019-20
CERTIFICATE OF
ORIGINALITY
This is to certify that the project entitled ‘Management of Agro Based
Industries in “MAPRO FOODS PVT. LTD.”, at SHENDURJANE (WAI),
SATARA’ is an original work of the student and is being submitted in partial fulfillment
for the award of degree in Bachelor of Business Administration (Agri.) of Mahatma
Phule Krishi Vidyapeeth, Rahuri
This report has not been submitted earlier either to this University or any other
University / Institution for the fulfillment of the requirement of a course of study.
Mr. S. S. PATHAN
(Reg. No. BAB021/2016)
Place: Baramati
Date: / /2019
Prof. R. M. Takale
Assistant Professor of Agril. Marketing,
College of Agri. Business Management,
Baramati
CERTIFICATE
This is to certify that the project entitled ‘Management of Agro Based
Industries in “MAPRO FOODS PVT. LTD.”, at SHENDURJANE (WAI),
SATARA’ submitted to the Mahatma Phule Krishi Vidyapeeth, Rahuri in partial
fulfillment of the requirements for the degree of BACHELOR OF BUSINESS
ADMINISTRATION (AGRICULTURE) embodies the results of a piece of bonafide
work carried out by Mr. SAMIR SHAIKHLAL PATHAN (Reg. No. BAB021/2016)
under my guidance and that no part of the project work has been submitted for any other
degree or diploma.
The assistance and the help rendered during the training period have been duly
acknowledged. The suggestions made by the Evaluation Committee are incorporated in
the project report.
Place: Baramati (Prof. R. M. Takale)
Date: / /2019
CERTIFICATE
This is to certify that the Project entitled ‘Management of Agro Based
Industries in “MAPRO FOODS PVT. LTD.”, at SHENDURJANE (WAI),
SATARA’ submitted to the Mahatma Phule Krishi Vidyapeeth, Rahuri for award of the
degree of BACHELOR OF BUSINESS ADMINISTRATION (AGRICULTURE)
embodies the results of a piece of bonafide Project carried out by Mr. SAMIR
SHAIKHLAL PATHAN (Reg. No. BAB021/2016) under the guidance of Prof. R. M.
Takale, Module In-charge, Experiential Learning Programme and that no part of the
Project has been submitted for any other degree or diploma.
Place: Baramati.
Date: / /2019
Principal
ACKNOWLEDGEMENT
It is my special right to record my cardinal thanks to respected Mr. Mayur Vora,
Owner of Mapro Foods Pvt. Ltd. for giving us opportunity to undertake this project work
and for providing us with essential amenities for completion of this project.
I am deeply indebted to Dr. B. N. PAWAR, DI’s Nominee for ELP, College of
Agriculture, Pune for their outstanding guidance to complete the project report.
I feel extremely honored for the opportunity bestowed upon me to work under the
guidance of Prof. R. M. Takale, Project guide and Professor of Agril. Marketing for his
judicious and invaluable guidance, kind suggestion, constant interest, kind help and
untiring efforts during project work, which helped a lot to complete the important work
of project.
I deeply express my heartiest thanks to Prof. N. A. Nalawade, Director of
Agriculture Development Trust, Baramati, Prof. Jaya Tiwari, Principal (I/C) of CABM,
Baramati and Professor of Agril. Economics, Baramati, Prof. A. R. Kale, Course Co-
ordinator for Experiential Learning Programme.
With a great gratitude, I realize that I was privileged to have the valuable
guidance and suggestions of Prof. S.S. Walke, Assistant Professor of Agri. Marketing ,
Prof. R.B. Shinde , Professor of Agri. Business managementand and Prof. P. L. Kolekar
Professor of Agril. Economics, who have made available all the requisite facilities with
constant encouragement throughout the period of my research work
There are no words in my account to express my deepest sense of gratitude to my
all friends and to all those persons who helps me directly or indirectly to make this
project complete in all respect successfully. The enthusiastic, cheerful and selfless
support of my dear friends through both the bright and dark phases of my work has been
invaluable to me. I offer my sincere thanks to these friends.
Last but not least, I won’t forget to express my deep sense and respect towards
my parents, for their moral support and showering love and affection on me.
Place: Baramati
Date: / /2019 (Samir pathan)
ABBREVIATIONS
Amt.
APEDA
BCR
BEP
Bn./bn.
BRC
Conc.
D.F.
Dist.
ELP
EPF
ETP
EU
FAO
FAOSTAT
FDI
FIFO
FMCG
FSSAI
FY
GDP
GFSI
Gm./g.
Govt.
GRN
HACCP
HP
HR
HRM
IB
IC
ID
IIM
IQF
ISO
Kcal
Kg.
L B H
Lit.
MAIDC
max.
MFPL
Amount
Agriculture and Processed Food Products Export Development Authority
Benefit Cost Ratio
Break Even Point
Billion
British Retail Consortium
Concentrated
Differential Factor
District
Experiential Learning Programme
Employee Provident Fund
Effluent Treatment Plant
European Union
Food and Agriculture Organization
Food and Agriculture Organization Corporate Statistical Database
Foreign Direct Investment
First In First Out
Fast-Moving Consumer Goods
Food Safety and Standards Authority of India
Financial Year
Gross Domestic Product
Global Food Safety Initiative
Grams/gram
Government
Goods Receipt Note
Hazard Analysis Critical Control Point
Horse Power
Human Resource
Human Resource Management
Incremental Benefit
Incremental Cost
Identity
Indian Institute of management
Instant Quick Freezing
International Standard Organisation
Kilo calories
Kilogram
Length Breadth Height
Litre
Maharashtra Agro Industry Development Corporation
Maximum
Mapro Foods Private Limited
MH
Min.
MKT
Ml
Mm
Mn.
MNC
MoFPI
MPCB
MSEB
MT.
NABARD
NOC
NPW
P&CP
PAN
PESO
PLC
PM
ppm
PSL
QC
QMS
R&D
RM
ROPP Cap
Rs.
RSM
RTC
RTE
SCM
SCS
Maharashtra State Electricity Board
Minute
Marketing
Millilitre
Millimetre
Million
Multi National Company
Ministry of Food Processing Industries
Maharashtra Pollution Control Board
Maharashtra State Electricity Board
Metric Tonne
National Bank for Agriculture and Rural Development
No Objection Certificate
Net Present Worth
Prevention and Control of Pollution
Permanent Account Number
Petroleum and Explosives Safety Organization
Product Life Cycle
Packaging Material
Parts Per Million
Private Sector Lending
Quality Control
Quality Management System
Research and Development
Raw Material
Roll on Pilfer Proof Cap
Rupees
Regional Sales Manager
Read to Cook
Read to Eat
Supply Chain Management
Squashes, Crushes and Syrups
SS Stainless Steel
SSI
SWOT
Small Scale Industry
Strength Weakness Opportunity Threat
T. Tonne
TIN
TSS
US
US $
VAT
WTP
Yr.
Tax Information Network
Total Soluble Solids
United States
United States Dollar
Value Added Tax
Water Treatment Plant
Year
1
Content
1. INTRODUCTION 5
1.1 CONCEPT AND MEANING OF AGRO-BASED INDUSTRY 8
1.1.1 Agro-Industry 8
1.1.2 Meaning Of agro-based industry : 8
1.1.3 Def of Agro-based industry : 8
1.2 GLOBAL SCENARIO OF AGRO-BASED INDUSTRY: 9
1.2.1 India’s Sectors Wise Processing Level 11
1.3 GLOBAL SCENARIO OF GRAPES 11
1.3.1 Global Grape Production 12
1.3.2 Export of Grape: - 13
1.3.3 Indian Grape Production: - 14
1.4 EXPORT OF PROCESSED FOOD AND RELATED PRODUCT: 15
1.4.1 Tax incentive and Policy Support for India’s Agribusiness 17
1.4.2 Goods and Service Tax (GST) 17
1.5 MAHARASHTRA SCENARIO OF AGRO-BASED INDUSTRY : 18
1.5.1 Agro-based Units in India and Maharashtra’s Shares : 19
1.6 IMPORTANCE OF AGRO-BASED INDUSTRY: 20
1.7 OBJECTIVES AND SCOPE OF STUDY: 21
1.7.1 Objectives of study: 21
1.7.2 Scope of Study: - 21
1.7.3 Limitation of Study: - 21
1.7.4 Presentation of Report: 21
2 REVIEW OF LITERATURE 22
2.1 TO STUDY THE MANAGEMENT ASPECTS OF THE MAPRO PVT. LTD. 22
2.2 TO ESTIMATE PER UNIT COST OF PRODUCTION AND WORKOUT PROFITABILITY OF
SELECTED PRODUCTS OF MAPRO FOODS PVT. LTD. 22
2.3 TO WORKOUT MARKETING COST MARKETING COST AND PRICE SPREAD OF
SELECTED PRODUCTS 22
2.4 TO STUDY CONSUMER BEHAVIOUR AND PREFERENCES FOR SELECTED PRODUCTS.
23
Chap. No. Title Page No.
Certificate of Advisory Committee I
Certificate of Originality II
Certificate of Company III
Certificate of Project Guide IV
Certificate of Principal V
Acknowledgement VI
Abbreviations VII
EXECUTIVE SUMMARY
2
2.5 TO IDENTIFY THE PROBLEMS FACED IN PRODUCTION , PROCESSING AND
MARKETING OF SELECTED PRODUCTS OF MAPRO FOODS PVT. LTD. AND SUGGESTIONS
TO OVERCOME THE PROBLEMS. 23
3 RESEARCH METHODOLOGY 24
3.1 SELECTION OF STUDY AREA 24
3.1.1 Selection of Country and state 24
3.1.2 Selection of district and locality 25
3.2 SURVEY OF DIFFERENT AGRO INDUSTRIES IN SATARA DISTRICT 25
3.3 MAJOR PLAYERS TO THE MAPRO:- 26
3.3.1 Kissan:- 26
3.3.2 Manama- 27
3.3.3 Tops:- 27
3.3.4 Mala’s :- 27
3.3.5 MADHUSAGAR 28
3.4 DATA REQUIREMENT 28
3.4.1 Source of Data: 28
3.4.2 Primary Data: 28
3.4.3 Secondary Data : 28
3.5 DATA ANALYSIS TECHNIQUES: 29
4 RESULTS AND DISCUSSION 32
4.1 GENERAL INFORMATION OF COMPANY 32
4.1.1 General Company Profile 32
4.1.2 Product Portfolio 33
4.2 HISTORY OF ORGANIZATION 36
4.2.1 Location of Mapro Foods Private Limited 37
4.2.2 Points Considered in Site Selection of Mapro Foods Private Limited 38
4.2.3 Layout of Mapro Foods Private Limited 39
4.3 PRODUCT MIX OF MAPRO FOODS PRIVATE LIMITED 40
4.3.1 Organization Structure of MFPL 41
4.3.2 Documents required for establishment of industry 42
4.4 RESOURCE USE MANAGEMENT: 43
4.4.1 Land : 44
4.4.2 Water: 44
4.4.3 Raw Material: 44
4.4.4 Machinery and Equipment’s: 45
4.4.5 Manpower 49
4.5 HUMAN RESOURCE MANAGEMENT 50
4.5.1 Human Resource Department policies 51
4.5.2 HRM's Focus 52
4.5.3 Human Resource Management and Line Managers 52
4.5.4 Functions of Human Resource Management 53
3
4.6 PRODUCTION MANAGEMENT:- 55
4.6.1 Production Department:- 55
4.6.2 Products Selected for Study:- 57
4.6.3 Processing flow chart for making Grape crush : 58
4.6.4 Grape crush preparation process:- 58
4.6.5 Flow chart for making mint candy: - 64
4.6.6 Procedure for making Mint candy: - 64
4.6.7 Production Department Policy 65
4.6.8 Objectives of production department 65
4.6.9 Production Planning decisions 66
4.6.10 Controlling decisions 66
4.6.11 Precautionary measures taken during material handling 67
4.7 QUALITY MANAGEMENT 68
4.7.1 Quality control department structure of MFPL 68
4.7.2 Quality department policy for acceptance of raw material 68
4.7.3 Quality Department Policy for acceptance of raw material 68
4.7.4 Quality management:- 69
4.7.5 Final Product of Mint mint candy 71
4.7.6 Quality Policies of MFPL:- 71
4.7.7 Certificates or credential:- 73
4.8 ECONOMIC ANALYSIS OF SELECTED PRODUCT:- 75
4.8.1 Production data of Mapro Fruit Products whole unit in 2017-18: - 75
4.8.2 Capital Investment for Grape Crush:- 77
4.8.3 Capital Investment for Construction of Building 78
4.8.4 Machinaries and equipment’s in SCS department: 79
4.8.5 The raw material required for Grape crush: 79
4.8.6 Variable Cost for Grape crush: 80
4.8.7 Per unit cost of Processing for Grape crush: - 81
4.8.8 Break-Even Point for Grape crush: - 82
4.8.9 The margin of Safety: - 83
4.8.10 Capital Investment for Mint candy:- 84
4.8.11 Capital Investment for Construction of Building 85
4.8.12 Raw Material required for mint candy: 86
4.8.13 Variable Cost for Mint candy: 86
4.8.14 Per unit cost of Processing for Mint candy 87
4.8.15 Break-Even Point for Mint candy: - 88
4.8.16 The margin of Safety: - 89
4.9 MARKETING COST, MARKET MARGIN AND PRICE SPREAD FOR GRAPE CRUSH: - 90
4.9.1 Marketing Cost for Grape Crush: - 90
4.9.2 Market margin of Grape crush: - 91
4.9.3 Price spread of Grape crush: - 92
4.9.4 Marketing cost, Market margin and Price spread for Mint candy: - 92
4
4.9.5 Marketing Cost for Mint candy:- 92
4.9.6 Market margin of Mint candy: - 93
4.9.7 Price spread of Mint candy: - 94
4.9.8 Marketing Efficiency of Mix fruit Jam and Tomato ketchup 94
MARKETING SURVEY 96
4.9.9 Retailer survey of Mapro foods private limited 96
4.9.10 Consumer survey Mapro foods private limited 100
4.9.11 Consumer Survey of Selected product: - 105
4.9.12 Schedule for Retail outlet 108
4.10 STP (SEGMENTATION TARGETING POSITIONING ) MODEL OF MFPL 111
4.10.1 Segmentation of MFPL: 111
4.10.2 Targeting of MFPL 112
4.10.3 Positioning of MFPL 113
4.11 PORTER’S FIVE FORCES ANALYSIS OF MAPRO FOOD PRIVATE LIMITED 114
4.12 VALUE CHAIN ANALYSIS OF MFPL 116
4.13 BCG MATRIX MODEL OF MFPL 118
4.14 SWOT ANALYSIS: 119
4.14.1 Strengths: 120
4.14.2 Weaknesses: 120
4.14.3 Opportunities: 120
4.14.4 Threats : 121
4.15 PROBLEMS AND SUGGESTIONS: 121
4.16 .FINDINGS: 122
4.17 CONCLUSION 123
4.18 EXPERIENCE GAINED 124
RFERANCES XIV
PHOTO GALLERY XV
VITA XVII
5
Figure Number
figure No 1. 1: classification of agro industry 8
figure No 1. 2 Agro Climatic zones of Maharashtra 18
Figure No. 3. 1 Map view of Country and state 24
Figure No. 4. 1 Mapro Foods Pvt. Ltd. 35
Figure No. 4. 2 Location of Mapro Foods Pvt. Ltd. on Map 37
Figure No. 4. 3 Satellite view of Mapro Foods Pvt. Ltd 37
Figure No. 4. 4 Points considered in site selection of MFPL 38
Figure No. 4. 5 Layout of Mapro Foods Private Limited 39
Figure No. 4. 6 : Products of MFPL 40
Figure No. 4. 7 Product mix 41
Figure No. 4. 8 Organization Structure of MFPL 41
Figure No. 4. 9: Sugar syrup machinery 45
Figure No. 4. 10 Mixing tank 46
Figure No. 4. 11 Internal bottle washer 46
Figure No. 4. 12 Capping machine 47
Figure No. 4. 13 Wetness 47
Figure No. 4. 14 Printer 48
Figure No. 4. 15 Sources of recruitment 53
Figure No. 4. 16 Processing flow chart for Making Grape crush 58
Figure No. 4. 17 Mixing tank 59
Figure No. 4. 18 Hot sugar syrup and pectin mixture 59
Figure No. 4. 19 Hand refractometer 60
Figure No. 4. 20 Flavours and fragrances 60
Figure No. 4. 21 Filling machine 61
Figure No. 4. 22 Sleevs applicator machine 61
Figure No. 4. 23 Storage of final product 62
Figure No. 4. 24 Mint candy 63
Figure No. 4. 25 : Cceptance of raw materia 68
Figure No. 4. 26 Segmentation of Mapro foods private limited 111
Figure No. 4. 27 Targeting of Mapro Foods Private Limited 112
Figure No. 4. 28 Brand positioning of Mapro Foods Private Limited 113
Figure No. 4. 29 Porter’s five forces analysis of MFPL 114
Figure No. 4. 30 Value chain analysis 116
Figure No. 4. 31 BCG matrix analysis of MFPL 118
Figure No. 4. 32 SWOT Analysis 119
Graph Number
Graph No. 1. 1 India’s grape production. 15
Graph No. 1. 2 Export of processed food and related product 16
Graph No. 1. 3 food processing industry contribute to indias GDP 17
Graph No. 1. 4 Shares of Different States in Organised food processing units. 19
Graph No. 4. 1: MFPL’s production line working days 55
6
Graph No. 4. 2. Production data of Mapro’s in 2017-18 76
Graph No. 4. 3 Alternative Grape crush
Graph No. 4. 4 Alternative Mint candy 98
Graph No. 4. 5 Improvement Grape crush
Graph No. 4. 6 Improvement Mint candy 99
Graph No. 4. 7 Reason Grape crush
Graph No. 4. 8 Reason Mint 101
Graph No. 4. 9 Alternative Grape 101
Graph No. 4. 10 Rating of Grape crush
Graph No. 4. 11 Rating of Mint 102
Graph No. 4. 12 Improvement Grape
Graph No. 4. 13 Improvement Mint 103
Graph No. 4. 14 Feature Grape crush
Graph No. 4. 15 Feature Mint candy 104
Table Number
Table No. 1. 1 India’s Sectors Wise Processing Level 11
Table No. 1. 2: - Global Grape Production 12
Table No. 1. 3 Export of Grape (2015-2017) 13
Table No. 1. 4 Indian Grape Production (2015-17) 14
Table No. 1. 5 Year-wise export of processed food products 15
Table No.3. 1 Survey of agro processing industries in Satara district. 25
Table No.3. 2 Major Competitors of MFPL and its product price 26
Table No. 4. 1 : Company profile 32
Table No. 4. 2 Resource use management of Mapro Fruit Products 43
Table No. 4. 3 Name of places from where raw material procure 44
Table No. 4. 4 List of machinery and equipment used by Mapro 47
Table No. 4. 5 List and number of employees worked at Mapro 49
Table No. 4. 6: Nutritional facts for Grape Crush 57
Table No. 4. 7. Availability of Ingredients in Grape Crush 57
Table No. 4. 8. Nutritional facts for Mint candy 63
Table No. 4. 9 Availability of Ingredients in Mint candy : 63
Table No. 4. 10 Quality specification for selected products 69
Table No. 4. 11 Table No 4.8 Quality specification of Pectin. 69
Table No. 4. 12 Quality specification of Sugar 69
Table No. 4. 13 Quality specification for Tartrazine edible color. 70
Table No. 4. 14 Quality specification of Citric acid 70
Table No. 4. 15 Quality specification for final product 71
Table No. 4. 16 Production data of Mapro Fruit products whole unit in 2017-18 75
Table No. 4. 17 Capital Investment for Grape Crush 77
Table No. 4. 18. Construction of Building: - 78
Table No. 4. 19. Machinaries and equipment’s in SCS department 79
Table No. 4. 20 The raw material required for Grape crush 79
Table No. 4. 21. Variable Cost for Grape crush: 80
Table No. 4. 22 Per unit cost of Processing for Grape crush: - 81
Table No. 4. 23 Capital Investment for Mint candy 84
Table No. 4. 24 Construction of Building 85
Table No. 4. 25 The raw material required for Mint candy: 86
Table No. 4. 26. Variable Cost for Mint candy: 86
7
Table No. 4. 27. Per unit cost of Processing for Mint candy 87
Table No. 4. 28 Marketing Cost Grape Crush 90
Table No. 4. 29 Market margin of Grape crush 91
Table No. 4. 30 Price spread of Grape crush 92
Table No. 4. 31 Marketing Cost Mint candy 92
Table No. 4. 32 Market margin of Mint candy 93
Table No. 4. 33 Price spread of Mint candy 94
Table No. 4. 34 Marketing efficiency 95
Table No. 4. 35. Retailer Survey 96
Table No. 4. 36 Popular flavour of customer 96
Table No. 4. 37 Customer demand more for products 96
Table No. 4. 38 Alternative use of brand 97
Table No. 4. 39 Improvement suggested 98
Table No. 4. 40 Consumer Survey 100
Table No. 4. 41 Reason for Prefernces of product 100
Table No. 4. 42 Alternative flavour purchase 101
Table No. 4. 43 Overall rating of product 102
Table No. 4. 44 Improvement from customer point of view 103
Table No. 4. 45 Product feature ranking 103
Table No. 4. 46 Targeted Group of MFPL 112
Table No. 4. 47 Relative market share and market growth rate 118
8
1. INTRODUCTION
1.1 Concept and Meaning of Agro-based Industry
1.1.1 Agro-Industry
Agro-industry deals with the supply, processing, and distribution of farm products and
inputs required for the agriculture sector.
It is related to the small scale and large-scale production, processing and packaging of
food using modern equipment and methods.
figure No 1. 1: classification of agro industry
The agro industry is classified into four major segments viz .Agro-base industry, Agro-
allied industry,Agro- related industry and Agro-service industry. The Agro-based industries
include fruits and vegetable processing, gain milling, etc. Segments. The Agro-allied
industries include Bee- keeping, Poultry, Dairy, etc. Units, Agro-related industry is consisting
of the sugar industry, textile industry, leather industry etc. Agro service industry offers
assistance for the industry discussed above . these industry include service centre and
workshop which are engaged in repairing and servicing of pump sets , diesel engines, tractors
and all types of farm equipment.
1.1.2 Meaning Of agro-based industry :
“ Agro- based industry ” is an omnibus expression. It could cover a variety of industrial,
manufacturing and processing activities based on agricultural raw materials as also
activities and services that go as inputs to agriculture, Agro-based industry is a industry
dealing with the supply ,processing and distribution of farm product . It is related to the
large – scale production, processing and packaging of food using modern equipment’s and
methods.
1.1.3 Def of Agro-based industry :
“Agro- based industry are those industries which have either direct or indirect links
with agriculture ”------(S. N. Bhattacharya, Rural Industrialization in India BR Publishing
Corporation, Delhi, 1980 )
AGRO-INDUSTRY
Agro- Based
industries
Agro- Allied
industries
Agro -Related
industries
Agro Service
industries
9
1.2 Global Scenario of Agro-Based Industry:
In number of countries food processing industry is a major contributor to the health
of national economy . In the same way this sector is impacted by the global economy in terms
of food logistics, imports and exports.
The global food and agriculture industry is estimated to be US $7.6 trillion, according
to Plunkett research or about 10 percent of global GDP. Global food exports totalled US $ 18.5
trillion in 2016, according to WTO. In the US food accounts for approximately 13 percent of a
typical households spending, ranking 3rd
behind housing and transportation, as per the U.S.
Bureau of labour statistics.
Asia specific region with 32 percent of total food and beverage retail sales stood as a
reigning leader. EU, the US and Japan accounted for more than 60 percent of total global
processed food retail sales. Although China is growing substantially, Japan is currently largest
food processing market in Asia.
Revenue in food and beverages segment amount to US $ 51,927 M in 2019, revenue
is expected to show an annual growth rate (CAGR 2019-2023) of 10.1 percent resulting in a
market volume of US $ 76,300 M By 2023. User penetration is 27.8 percent in 2019 and is
expected to hit 36.2 percent by 2023. The average revenue per user currently amounts to US
$ 42.97. In global comparison, most revenue is generated in china (US$ 21,945 M in 2019)
In Asia food rank first estimated at 23 percent of consumers spending followed by
education and housing. This shows demand for food processing industry. Global food
processing alone will account for US $ 2.6 trillion by 2020. 65 percent of the world’s middle
class will be living in the Asia Pacific region by 2030. The increasing disposal income in
emerging economics will drive demand for manufactured food products.
India food industry contributes 1.7 percent of global processed food industry. Apart
from Asia, Australia has one of the most technically advanced food processing industries in the
world. Indian is one of the world’s largest producer of fresh fruit and vegetables. However,
fruit and vegetable processing is relatively undeveloped in country.
The processed food segment is 65 percent of fruit and vegetable processing sector, by
market share. The processed fruit and vegetable sector includes frozen, canned, dried fruit and
vegetables and other with significant percentage of imports, at an average of 35percent, revenue
to processors and producers from the processed food products sector are strongly influenced
by international trade.
10
North America dominated the fruit and vegetable processing market in 2015. There is
a high consumption of frozen fruits and vegetables in the US and Canada. However, due to the
increasing health awareness, consumers are expected to shift toward fresh produce in the long
run. Demand for processed fruits and a vegetable has grown strongly in the developing
countries of Asia Pacific over the past five years.
The emerging markets (India, Indonesia, China and Malaysia) will increasingly drive
global growth the share of export and import for food and drink products in these markets is
growing rapidly. Manufacturing and processing will increasingly shift to these markets, to be
close to a growing customer base.
Indian scenario of Agro-based industry
India is the second largest producer of fruits and vegetables in the world with a
production of 305.4 MT during 2017-18, India is largest producer of ginger and okra amongst
vegetables and rank second in production of potatoes, onion, cauliflower, brinjal, cabbage etc.
Amongst fruits, the country ranks first in production of bananas (25.7%), Papayas
(43.6%) and mangoes (including mangos teens and guavas) (40.4%) The vast production base
offers India tremendous opportunities for export. during 2018-19 ,India exported fruits and
vegetables worth Rs . 102236.93 core/ 1469.33 USD Million which comprised of fruits worth
Rs. 4817.35 cores/ 692.01 USD Million and vegetables worth Rs. 5419.48 Crores /777.25 USD
millions.
The major destinations for Indian fruits and vegetables are Bangladesh, UAE,
Netherland, Nepal, Malaysia, UK, Sri lanka, Oman and Qatar Through India’s share in global
market is still nearly 1 percent only there is increasing acceptance of horticulture produce
from the country .
This has occurred due to concurrent developments n the areas of state-of-the-art cold
chain infrastructure and quality assurance measure. apart from large investment pumped in by
private sector, public sector has also taken initiatives and with APEDA’S assistance several
centres for perishables cargoes and integrated post-harvest handling facility has taken set up in
the country .capacity building initiatives at the farmers, processors and exporter’s levels has
also contributed towards this effort India is the world’s largest producers of banana, papaya,
mangoes and guavas the second largest producer of potatoes, green peas, tomatoes, cabbage
and cauliflower.
11
1.2.1 India’s Sectors Wise Processing Level
Table No. 1. 1 India’s Sectors Wise Processing Level
The fruits and vegetables processing level is only 2 percent which is very less as compared to
other sectors and the availability of fruits and vegetables in India.
1.3 Global scenario of Grapes
This is a list of countries by grape production in 2016-17, based on data from the Food and
Agriculture Organization Corporate Statistical Database.
The total world production for grapes in 2017 was 74,276,583 MT, down 1.0 percent from
74,992,047 tonnes in 2016. China was the largest producer of grapes, accounting for 16.8
percent of global production. Italy came second at 10.9 percent, followed by the United States
at 9.6 percent.
As per the given in below table no. 1.2 The country China has no.1 in production of
Grapes about 13,083,000 MT of grape production taken in the year 2017 but in 2016 its been
quite less its 12,629,000 MT. The second-largest producing country after China in Italy, Italy
has 8,201,914 MT. production in the year 2016, in the year 2017 it is 7,169,745 MT. and in
the third number, the US has a 6,247,034 MT. production in the year 2016 and in 2017 it is
6,679,211 MT. In fourth no. comes France, France has produced in the year 2016 is 6,247,034
MT. and in the year 2017, its 59,15,882 MT production done. As like that Spain and Turkey
in the year 2017 has a 5,387,379 and 5,950,719 MT production India has the 7th
number in
production of Grape in the year 2017 India gets about 2,922,000 MT and in the year 2016, it's
25,90,000 MT. production
Sr. No. Food Processing Sector Level of Processing in India (%)
1. Marine Products 23
2. Meat 21
3. Milk 40
4. Poultry 6
5. Fruits and Vegetables 2
12
1.3.1 Global Grape Production
Production 000 MT
(2015-2017)
Table No. 1. 2: - Global Grape Production
Sr. No. Country
2015-16 2016-17 2017-18 2016 to 2018
Production Share (%) Production Share (%) Production Share (%) Average Production
1 China 13164 24.50% 12629 23.39% 13083 25.33% 30154
2 Italy 7915.01 14.73% 8201.91 15.19% 7169.74 13.88% 18507
3 USA 6964.59 12.96% 7225.64 13.38% 6679.21 12.93% 16417
4 France 6258.36 11.65% 6247.03 11.57% 5915.88 11.45% 14477
5 Spain 5799.13 10.80% 5950.72 11.02% 5387.38 10.43% 13546
6 Turkey 3650 6.79% 4000 7.41% 4200 8.13% 9050
7 Chile 2700 5.03% 2200 4.07% 2000 3.87% 5567
8 India 2602 4.84% 2590 4.80% 2922 5.66% 6166
9 Argentina 2415.57 4.50% 2675 4.95% 1965.21 3.81% 5746
10 Iran 2251.55 4.19% 2275.83 4.21% 2325 4.50% 5302
Total 53720.21 100.00% 53995.13 100.00% 51647.42 100.00% 124931
As shown in below table No.1.2 the average production of the year 2015 to 2017 is the top one country is China its average production of the last three
years is 30,154MT as similar to Italy is 18,507MT and the USA has a 16417MT. India rank 8th
with are production 6466MT
13
1.3.2 Export of Grape: -
Qty in MT
Value in Rs. Lacs
As shown in above table No. 1.3 The highest exporter country in the world is Netherland they export average quantity about 1,24,887MT and
its value is 141397 Lacs in year 2015, 2016 and 2017. The second highest exporter country is UK they export average quantity is 37376 MT and its
value is about 43596 lacs
Sr.
No.
Country
2015-16 2016-17 2017-18 Average
Quantity Value Quantity Value Quantity Value Quantity Value
1 Netherland 50390.44 58588.51 55010.43 61224.15 58456.97 64753.35 124887 141397
2 Russia 12445.66 12705.38 22340.94 23466.83 27434.39 27734.44 43931 45417
3 United Kingdom 17598.08 20654.35 13580.14 15544.22 18594.24 22193.56 37376 43596
4 Germany 4222.37 4994.07 10467.38 11913.54 16449.51 18091.76 20173 22938
5 United Arab Emirates 11692.6 9794.17 14597 11694.64 13574.9 10971.59 30815 25146
6 Saudi Arabia 5486.93 4681.37 7308.91 6306.15 9482.96 7116.9 15957 13360
7 Thailand 3146.12 4011.81 4509.7 5922.65 5043.03 6554.06 9337 12119
8 Finland 1574.5 2013.04 2079.88 2532.52 2131.87 2854.18 4365 5497
9 Hong Kong 1056.33 1424.45 2094.5 3060.31 1969.32 2832.7 3807 5429
10 Belgium 41.6 43.25 4651.57 4900.95 2331.45 2534.07 5470 5789
11 Sri Lanka 1732.15 2284.91 1776.37 2313.58 2196.06 2441.11 4241 5412
12 Others 23260.82 15030.27 60054.49 29291.84 30556.46 21917.14 93501 51628
Total 132647.6 136225.58 198471.31 178171.38 188221.16 189994.86 393859 377729
Table No. 1. 3 Export of Grape (2015-2017)
14
1.3.3 Indian Grape Production: -
Table No. 1. 4 Indian Grape Production (2015-17)
Sr no.
States
2015-16 2016-17 2017-18 Average (MT)
Area Production Area Production Area Production Area Production
1. Andra Pradesh 0.73 14.694 0.77 15.36 0.8 15.92 2 35
2. Haryana 0.04 0.16 0.04 0.04 0.04 0.09 0 0
3. Himachal Pradesh 0.09 0.13 0.09 0.1 0.08 0.13 0 0
4. Jammu & Kashmir 0.13 0.32 0.32 0.65 0.33 0.89 1 1
5. Karnataka 23.35 429.78 24.29 450.79 26.61 524.2 57 1055
6. Kerala 10 15.5 1.2 16 0.01 0.18 11 32
7. Madhya Pradesh 0.16 2.2 0.09 1.28 0.09 1.28 0 4
8. Maharashtra 90.09 2048.11 104.1 2378.2 105.5 2286.4 229 5188
9. Mizoram 2.47 22.55 2.45 18 2.45 18 6 47
10. Nagaland 0.26 0.5 0.26 0.6 0.22 0.54 1 1
11. Punjab 0.3 8.49 0.29 8.22 0.29 8.23 1 19
12. Rajasthan 0.01 0.02 0 0.01 0 0 0 0
13. Tamil Nadu 2.44 34.1 2.49 29.02 2.16 58.93 6 83
14. Telangana 0.59 13.54 0.29 3.47 0.35 5.27 1 19
Total 120.7 2590.09 136.7 2921.7 138.9 2920.1 304 6485
15
Graph No. 1. 1 India’s grape production.
As shown in above table no. 1.4 The highest producer of grape in india is Maharashtra state is
about 30.09 Ha area comes under cultivation of grape and its production is 2048.11 MT. second
largest producer state is Karnataka its average Area under cultivation is 57 Ha. And its
production ia about 1055 MT. And Maharashtra states has a average area under production 229
Ha. And its area is 5188 MT.
1.4 Export of processed food and related product:
Total exports of processed food products of India for the last 6 years are given in Table and
Chart, it will help to calculate Average Annual Growth Rate (AAGR)
Table No. 1. 5 Year-wise export of processed food products
* Average Annual Growth Rate for 5 years ending 2016-17
The value of export of processed food during 2019-17 was of the order of US$ 30.87 billion
which is 11.19 percent of indias total export (total exports US$ 276 Billion)
As per trade map data, during 2016 Indias share in world exports of processed food products
was about 2.22 percent.
average grape production in india
Andra Pradesh Haryana Himachal Pradesh
Jammu & Kashmir Karnataka Kerala Madhya Pradesh
Maharashtra Mizoram Nagaland Punjab
Rajasthan Tamil Nadu Telangana
Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 AAGR
FPI – Exports 31459.58 35898.06 38051.43 36171.92 29672.32 30871.47
0.25%
Percent
Growth
14.11% 6 % -4.94% -17.97% 4.04%
16
Graph No. 1. 2 Export of processed food and related product
Contribution of Food Processing to Indian GDP:
Agro processing industry is one of the largest industries in India and rank 5th
in terms of
production consumption and export as per the latest data available, in Indian economy as it
contribute 9 percent and 11 percent of GDP in manufacturing and agricultural industry
respectively.
Gross value added of food processing industry in India has been recorded as US $17.50 billion
in 2016-17. No. Of registered food processing unit has increase from 38608 in 2014-15 to
39748 in 2016-17.
Investment in fix capital is registered food processing sector has grown from US $ 29.50
billion in 2015-16 to US $ 32.30 billion in 2016-17 witnessing growth rate of 9.50 percent. The
food processing industry in India stand as one of the major employment intensive industry,
constituting 12.77 percent of employment generated in all manufacturing factories registered
under factory act 1948. Additionally, the sector constitutes 13.72 percent of employment in
unregistered manufacturing sector.
The food processing industry in India contributed approximately US
$ 3.92 bn to India’s exports in the year 2017-18
17
Graph No. 1. 3 food processing industry contribute to indias GDP
1.4.1 Tax incentive and Policy Support for India’s Agribusiness
100 percent automated FDI permitted through automatic root in the food processing sector.
There are concessional rate of custom duty applicable on imported equipment under the project
import benefits. Income tax deduction on capital expenditure allow at the rate of 150 percent
for setting up and operating cold chain or warehouse. Loan to food and agro-based processing
units and cold chain covered under priority sector leading (PSL)by banks
The reduction that has been distinctive for the previous corporations is as follows:
100 percent of income and profits derived: First 5 years (starting in the year wherein the
challenge commences task the eligible enterprise)
100 percent of income and profits derived: First 5 years (beginning in the 12 months in which
the venture commences undertaking the eligible enterprise
25 percent of profits and gains derived: Next five years
1.4.2 Goods and Service Tax (GST)
GST, an indirect tax delivered in India on 1 July 2017, is applicable throughout us of a. It has
subsumed inside itself the multiple cascading taxes levied via the Central and State
Governments. Under GST, items and services are taxed on the fees of 0 percent, 5 percent, 12
percent, 18 percent, and 28 percent. Ministry of Food Processing and Industries (MOFPI) has
undertaken several projects for the improvement of the Food Processing quarter, together with
streamlining rates for products underneath the GST regime
18
1.5 Maharashtra Scenario of Agro-based Industry :
Maharashtra is bio-diverse state with 9 agro climatic zones and varying soil type suitable
for agriculture.
figure No 1. 2 Agro Climatic zones of Maharashtra
1. South Kokan Coastal Zone
2. NorthKokan Coastal Zones
3. WesternGhat Zone
4. Transition Zone 1
5. Transition Zone 2
6. Scarcity Zone
7. Assured Rainfall Zone
8. Moderate Rainfall Zone
9. Eastern Vidarbha Zone
Maharashtra is one of the major horticultural state in India with more than 295.2 MT production
of fruits and 175 MT vegetables.
Maharashtra has highest value addition to the food products in the country. It accounts 16.18
of value addition of agriculture produce of Maharashtra.
The special economic zones in India are 779 and Maharashtra having highest number of special
economic zones in country .
19
The share of food processing industry in total share of industrial sector is 12 percent. 90 percent
of total wine industries located in Maharashtra. Nearly 80 percent of demand for wine centres
in following major cities of country - New Delhi , Mumbai , Chennai , Kolkata, Pune and
Bangalore.
India rank 77 in terms of wine consumption in world .The country accounts 0.8 percent of
total wine consume in Asia as compared to China which accounts more than 62.7 percent
market share. Under its Mega Food Park Schemes , Ministry of Food Processing Industry (
MOFPI ) has sanctioned four Mega Food Parks Projects –
a. Jain Agro Trading Company Private Limited, Wardha ( In –principle approval b. Vinay
TiwariAgro Estates and Farms Pvt. Ltd. Ahmednagar.
c. Paithan Mega Food Park Ltd. Aurangabad.
d. Satara Mega Food Park Pvt. Ltd. Satara.
1.5.1 Agro-based Units in India and Maharashtra’s Shares :
Graph No. 1. 4 Shares of Different States in Organised food processing units.
20
As shown in Graph no.1.4 the share of different state in organised food
processing units among which the share of Maharashtra is highest (14 percent) , followed by
the Andhra Pradesh(13 percent )and Gujarat (13)
1.6 Importance of Agro-based Industry:
Agro processing is one of the largest global sector at $ 60 trillion annual production.
Currently only 2.2 percent of India’s vegetables and fruit production is processed. In
comparison USA and China processes their 90 percent and 40 percent produce. Other
developing countries, such as Philippines, Brazil and Thailand are processing as a high as 78,70
and 30 percent of their produce simultaneously. Important of the sector is significant and it’s
deserves a priority treatment by government. Accordingly sector has been made part of
ambitious ‘Make in India’ initiative. Growing population, rapid organization, changing
consumer preferences etc. are expected to keep the demand to increasing to. With a well-
integrated supply chain and a good marketing strategy, a tremendous opportunity lies for
processed food industry.
Government of India has taken lot of initiatives and policy decision for commercializing
agriculture with specific importance on high take horticulture and developing the fruit
processing, preservation and packaging sectors to its full capacity. The fruit processing sector
is rapidly being transformed to a high volume profit making industry. A distinct shift is seen
among the consumers for process, prepared and packed fruits product not only in the so called
developed country but also in the developing country like India.
Large no of units are in the cottage/home scale and small scale sector, having small
capacities up to 250 tonnes/annum, though big Indian and multi-national companies have
capacities in the range of 30-50 tonnes/hours or so. The inherent strength of high raw material
production and large domestics market base has be buttressed with operating processing units
at optimum capacity level as per economics of scale which would enable achieving competitive
edge over imported product more recently product like frozen pulp and vegetables, IQF dices
frozen dried foods and vegetables, food juice concentrates and vegetables curries restorable
pouches, canned mushroom and mushroom product have been taken up form manufacture by
the industry
21
1.7 Objectives and Scope of study:
1.7.1 Objectives of study:
1) To study the management aspects of the Mapro Pvt. Ltd.
2) To estimate per unit cost of production and workout profitability of selected products
of Mapro Foods Pvt. Ltd.
3) To workout marketing cost marketing cost and price spread of selected products.
4) To study customer behaviour and preferences for selected products.
1.7.2 Scope of Study: -
The study in area of management of agro-based industries will help to know the
concepts, ideas, and management practices to be followed in agro-based industries. It will help
to be well versed with management aspects of agro-based industries. While studying the
management processes the work helped me to know actual work performed in the industry, the
advantages and limitation in processes and the ways to overcome these limitations and improve
the overall effectiveness of the system which will helps to establish new firm. The students,
researchers, professionals who are seeking information and conceptual reference in area of
management of agro-based industries will help them in their studies by referring this project
frame work.
1.7.3 Limitation of Study: -
In this empirical study , there are some limitations. It was unable to study whole area of
domestic market due to time limit. This result will not applicable to all zones of the country
because the conditions are changing according to market demand, situation , time , environment
and season. The study result may applicable to similar and identical situations. There are some
limitations for getting most reliable information due to confidential policies of company for
security purpose.
1.7.4 Presentation of Report:
Presentation of Report is done in three main chapters, the first introductory chapter illustrate
the concept and meaning and scenario of agro-based industry, the related marketing aspects
and objectives, scope and limitations of study in the area management of agri business
management. Chapter second deals with the methodological issues wherein sample design data
collection techniques are narrated. The detailed discussion in concern with objectives is given
in third chapter of this report. The management practices followed procurement, production
and marketing of products along with the findings and suggestions of study are integral part of
this study.
22
2 REVIEW OF LITERATURE
2.1 To study the management aspects of the Mapro Pvt. Ltd.
Shri.CA. A. Raghavendra Rao (2017) :International Journal of case studies in business, IT
and Education Applied , Vol, 2.
The case study based on management research which belief that it is a most powerful
way to study and learn new lessons required to identify , understand and solve the problem in
the process of managing and leading the organization . The issues or problems identified in a
given industry and the efforts made by organizations to handle such issues or solve such
problem are learning opportunities for student and researcher in business management
institution. The article guide us about analysis as a class of case study methodology in
management research for developing research case studies .
2.2 To estimate per unit cost of production and workout profitability of selected products of
Mapro Foods Pvt. Ltd.
Mohammed Al-Malki & Wang Juan (2015) : Journal of International Business Research and
Marketing Volume 1 , Issue 1,
This study determined the effects of cost- volume profit analysis in the decision
making of agro processing industries. The study combined both survey research and
longitudinal research design. The results revealed that the sale value of a product and quantity
of product manufacture has positive effects on profit made on product, and also there is a
significant relationship between the cost of production and profit. This study also help to
known break even point where firm is neither in profit nor loss,
2.3 To workout marketing cost marketing cost and price spread of selected products
S.S. Acharya and N.L. Agarwal ,Forth edition (2004): Marketing Channels in Agriculture in
India
S.S. Acharya and N.L. Agarwal studied various Marketing Channels in Agriculture in
India In this study they showed various marketing channels from producer to consumer. They
also explained the role of various market functionaries. The also explained how the marketing
management concept influence the output of total product. They also showed the prices of
various commodities varies from channel to channel. They also explained how the price spread
of marketing channel.
23
2.4 To study consumer behaviour and preferences for selected products.
Subadra S. Murugesan K. M. & Ganapathi R. (2018) : consumer perception &
Behavior & concluded that consumer behaviour consists of all human behaviour that goes in
making purchase decision. An understanding of consumer behaviour enables a marketers to
take marketing decision which are compatible with its consumer needs. These are four major
classes of consumer behaviour determinants & expectations, namely, cultural,
socioeconomically , person and psychological. There are certain attributes of the product which
are identified as influencing the purchase decision & satisfying the customer.
2.5 To identify the problems faced in production , processing and marketing of selected
products of Mapro Foods Pvt. Ltd. And suggestions to overcome the problems.
R.K. Bharadwa, B. K. Singh, N. K. Singh (2017): Challenges and Constraints of Marketing and
Export of Indian Spices From India and International conference on technology and Business
Management
R. K. Bharadwaj, B. K. Singh, N. K. Singh conducted a study on “Challenges and
Constraints of Marketing and Export of Indian Spices From India” In this study they showed
all the problems in food sector related to marketing and exporting zone i.e. the Low
productivity, poor product quality, insufficient mechanization and Agril Extension is not
market oriented. Various problem faced by production, processing and marketing of products,
and also known about various suggestions to overcome the problem in processing , production.
24
3 RESEARCH METHODOLOGY
Descriptive research and exploratory research was conducted to fulfill the objective
of the study. In order to arrive at proper conclusions, it is necessary for investigator to adopt
appropriate methods and procedures. The success of any projectdepends on the methodology
which is adopted during data collection, compilation andvarious types of analysis on scientific
lines.
3.1 Selection of study area
3.1.1 Selection of Country and state
Figure No. 3. 1 Map view of Country and state
India is one of the world’s largest producers of food. This shows a good availability of raw
material in the country. But the processing level of the Agro Processing industries is less as
compare to the production. The country also has good government support to establish Agro
based industry and has export potential as well as efficient inputs availability like land, labours
etc. which economically beneficial to select the area. In India Andhra Pradesh, Maharashtra,
Tamil Nadu are the major food, milk And fruits producing and processing states. Maharashtra
has great potential in processing sector.
Maharashtra is fastest growing Agro industrial state after 1965. It has number of
manufactures; those are supplying wide range of raw material like Jain Fresh Farms.
Maharashtra introduces various schemes, develops the food parks, MOFPI schemes for
effective running of Agro based industries. It also has good
25
infrastructure and raw material availability which is the backbone of Agro based industries. It
has good market demand and locations which plays crucial role in exporting products.
3.1.2 Selection of district and locality
Satara district hold numbers of ongoing industries. As per survey of micro, small and
medium enterprises development institution more than 352.31hactares area is under at
industrial sector in Satara. It has good APMC and rural infrastructure. It has a right location for
availability of raw material suppliers like Koyana Agro, BVG (Bharat Vikas Group) food park
etc. It has appropriate location that is linked with roadways and national highways. It has more
than 181 numbers of enterprises in manufacturing food products and beverages
3.2 Survey of different agro industries in Satara district
Table No.3. 1 Survey of agro processing industries in Satara district.
To fulfill purpose of study, Satara district was identified to complete
experiential learning programme, where four major agro processing industries are found which
are related to fruits processing those are; Manama, Mapro, Mala’s and Madhusagar. Especially
they are processing the fruits and introducing fruit products.
Sr.
No.
Name Address
Est.
Year Owner
1.
Manama
26/3 Bhose Village, Panchgani,
Satara, Maharashtra, India.
1994 Mr. Mohsin
Mala
2.
Mapro
122, Shendurjane, Wai, Satara,
Maharashtra, India.
1959 Mr. Mayur
Vora
3.
Mala’s
Plot No. B-47, Wai MIDC,
Satara, Maharashtra, India.
1958 Mr. TayabAli
Mala
4.
Madhusagar
A/P. Mahabaleshwar, Satara. 1955
Mr. Sanjay
Gaikwad
(Chairman)
26
As per study it was found that Mapro’s having a good industrial profile. It is one of
renowned name in the field of a food processing, leading exporter, manufacturer and supplier
of finished products like jam, jelly, crushes etc. The company has grown widely in last 6
decades. Due to quality and brand awareness Mapro having goodwill in the market.
3.3 Major players to the Mapro:-
Table No.3. 2 Major Competitors of MFPL and its product price
Major
competito
r
Competitor
Product
Prices of
Competitors price
Rs./kg
Mapro’
s
Product
price
Rs./kg
Kissan Jam 220 198
Mala’s Crush 280 270
Top’s Chocolate 150 117
Manama Syrup 200 180
Parley Pulpero 280 261
.
Above table no.3.2 shows that the major competitor of Mapro and its major product price ,from table
its shows that prices of 1 kg Mapro product is low as compared to its competitors for remaining in a
market it beat the competitor i.e. Mapro 1 kg mix fruit jam has selling price 198 which is low as
compared to its tough competitor kissan .
3.3.1 Kissan:-
27
Introduced primarily for the British settlers in India since 1935 by Mitchel Hindustan
Unilever took it Kissan is in the market leader in jam and ketchup. Today it is a power brand
Kissan for Unilever. Kissan is not just about jams, ketchups and squashes, but they also play
a vital role in the growth of raw material, and to help small farmers.
3.3.2 Manama-
The Manama founded in 1994 by Mr. Mohsin Mala at Pannchganni with the prime
motive of offering affordable, high quality products to consumers. The fresh, invigorating
atmosphere of the Sahyadri Hills in Panchgani was an ideal location for such a venture. For
the first time in India they introduced an exclusive range of cordials and dessert toppings.
3.3.3 Tops:-
Tops are a food processing company existence in the year 1984 starts by Mr. B.M.Seth
and Mr. Chand Seth. Company introduces jams, jelly, pickles, sauces etc. it’s has popularity
in India and in as many as 25 countries around the world.
3.3.4 Mala’s :-
As per study it was found that Mala’s having a good industrial profile. It is one of
renowned name in the field of a food processing, leading exporter, manufacturer and supplier
28
of finished products like jam, jelly, crushes etc. Mala’s is also supplying jam to Indian
defense services which shows the quality of products.
3.3.5 MADHUSAGAR
Mahabaleshwar Madhothpadak Co-operative Society LTD (MADHUSAGAR).
Madhusagar was established on 25 May 1955, was on the basis of co-operative
structural theories with the guidance of Mr. Bapusaheb Shende. Madhusagar completed its
golden jubilee and running due to overwhelming support of Maharashtra Rajya Khadi
Gramodyog Mandal. It is manufacturing products in basic level. They produce very pure
products to sale for customers, in that the Honey, Jam, Jelly, Syrups, Crushes etc.
3.4 Data requirement
To study management aspects of jams at Mapro Fruit Products, Wai. The data
collected with various aspects such as information is analyzed right from the procurement of
raw material till the product reaches to consumer
3.4.1 Source of Data:
1) Primary Data: -
a. Personal interview
b. Market survey
c. Questionnaire
2) Secondary Data: -
a. Websites
b. Reports published by Govt.
3.4.2 Primary Data:
The primary data was collected with the help of personnel interview and
discussion with managers, team and customers for the company to get some ideas about the
project and related perceptions of the situation. The information was collected with designed
open ended and close ended questionnaire also a schedule was used for collecting the data.
3.4.3 Secondary Data :
Secondary data was also collected from books, reputed statistical websites,
already existing sources that is companies records, files, magazines, company websites,
internet, pamphlets etc
29
3.5 Data analysis techniques:
The collected data was categories in systematic way according to the need of
objectives by using tabular and graphical method. Also, the data was analyzed using
following formulae:-
Analytical tools:-
1) Total cost = Fixed cost + Variable cost
2) Product share = (Production of selected product /Total
production of company) * 100
3) Per kg cost of production = Total cost of production / Total production
4) Junk Value = Original amount / 100 * 10
5) Depreciation = Original Cost of the Assets – Junk Value/Useful
life of the Assets
6) Producer profit = Selling price – Cost incurred
7) Price Spread = Price paid by consumer - Price received by
producer
8) Market Margin of wholesaler = Selling price- (Purchase price + Market cost)
9) Market Margin of Retailer = Selling price - (Purchase price + Market cost)
10) Producer Share in Consumer Rupee = Producer selling Price / Consumer purchase
Price*100
11) NPW = Net Present Worth:
NPW
Where,
Bt = Benefit in each year Ct = Cost in each year
t= number of year i = interest rate
12) BCR = Benefit Cost Ratio:
BCR
30
Where,
BCR = Benefit cost ratio
Bt =Benefit in each year Ct = Cost in
each year t = 1, 2, ----n
n = Number of years i = interest (discount) rate
B:C > 1 then project is acceptable.
B:C < 1 then project is rejected.
Break Even Point:-
In Quantity term: = Fixed Cost / (Selling price per kg – Variable cost
per kg)
Monetary term:- = Fixed Cost /(1- Variable cost per kg / Selling price
per kg)
13) Margin of safety in quintal =Total Yield – BEP in quantity
14) % Margin of safety in quintal = (BEP in quantity / Total Yield) * 100
15) Margin of safety in value =Total Returns – BEP in monetary value
16) % Margin of safety in value = (BEP in monetary value / Total Return) * 100
17) Financial ratio analysis
1) Current ratio = Current assets / Current liability
2) Net capital ratio = Total assets / Total liability
3) Quick ratio = Quick assest / Current Liability
4) Cash ratio = Cash and deposits / Current liability
SWOT analysis.
B) Statistical tools- Pie chart, bar chart, tables
1) Estimation of production costs and returns of product
The simple methods of tabular analysis based on means, averages and percentages were
followed in estimation of costs and returns of individual product.The total cost of production
of product comprises of fixed cost and variable costs. The depreciation, interest on fixed
investments on Company, value of land etc. were considered as the items of fixed cost,
whereas, the packaging material, power and fuel, electricity, labour charges, etc. were the
items of variable costs. The production in during the year were multiplied by price obtained
for a product , to arrive at annual gross returns.
2) Benefit Cost ratio:
It is worked for Company by using following formula:
31
Benefit in each year
BC ratio = ------------------------
Cost in each each year
The total returns obtained from company and total cost incurred (Fixed + Variable cost)
during the year was considered.
3) Break-even analysis (BEP)
The break-even point is the interaction of the total revenue and the total cost. At this
point, the vertical distance between the total revenue and cost is zero. There exists ‘no profit
and no loss’ situation. However, as the vertical distance between them increases, the total profit
increases with the increase in output. The BEP quantity is calculated as follows
Break Even Point :- = Fixed Cost / (Selling price per kg – Variable cost per kg)
4) Sensitivity analysis
Sensitivity analysis is done for the cost, yield, and price .With the help of given cost,
yield and price structure, the ranges of cost, yield and price are estimated to analyses how much
company can sustain the fluctuations in above factors. The following concepts of estimated
cost, estimated yield and estimated price were employed to examine the sensitivity of the
average company towards risk and uncertainty of increase in production cost, reduction in yield
and lowering down the prices of cut flowers, under existing cost, yield and price structure.
(Pawar et al. 2000).
Estimated cost =Actual yield X Actual price
Estimated yield =Actual cost /Actual price
Estimated price =Actual cost /Actual yield
5) Marketing efficiency (ME)
Marketing efficiency is the ratio of price paid by the consumer to the summation
of marketing cost and net marketing margins. Higher the value of ratio, higher is the
Marketing Efficiency. (Acharya. and Agarwal, 1999)
Pc
Mc + Mm
Where,
ME = Marketing efficiency
Pc = Price paid by consumer per product
Mc = Total Marketing cost per product
Nm = Net marketing margin
ME =
32
4 RESULTS AND DISCUSSION
4.1 General Information of Company
4.1.1 General Company Profile
. Mapro Foods Private Limited is a Fast Moving Consumer Goods company
engaged in manufacturing syrups, jams, ketchup, candy confectionaries and other
related products. The general information of company is given in the table below.
Table No. 4. 1 : Company profile
Sr.
No.
Particulars Details
1 Name of company Mapro Foods Pvt. Ltd.
2 Type of company FMCG
3 Brand Name “MAPRO”
4
Year of Establishment of
Industry
1959
5 Address
122 Shendurjane, Taluka-Wai, and
District-
Satara-412803
6 Founder visionary Mr. Kishore vora
7 Name of Owner Mr. Mayur vora
8 Type of Ownership Private
9 Items Processed in
the Industry
Jam, Jellies, Syrups, Ketchup, Choco
powder.
Crushes, Squashes, Chocolates,
Toppings,
10 Website www.mapro.com
11 Tel. No. +91. 2167. 222111(INDIA)
12 Email mapro@vsnl.com
13 Fax +91.2167.222031
22000:2005
14 Certification & Credentials Certification BRC (British Retail
Consortium),
HACCP, HALAL Certificate.
15 FSSAI license no. 10012022000206
33
4.1.2 Product Portfolio
Jams:-
1. Mango jam.
2. Pineapple jam.
3. Mixed Fruit jam
4. Strawberry jam.
5. Whole strawberry jam.
Falero :-
6. Kachhikairi.
7. Pineapple.
8. Guava.
9. Litchi.
10. Strawberry.
11. Imli
Crush
12. Mango crush.
13. Orange crush.
14. Mulberry crush.
15. Raspberry crush.
16. Pineapple crush.
17. Kiwi crush.
18. Butterscotch crush.
19. Guava crushes.
20. Pineapple whole crush.
21. Strawberry whole crush
Squash.
22. Orange squash.
23. Mango squash.
24. Litchi squash.
25. Lemon squash.
34
26. Ginger squash
Syrup.
27. Rose syrup.
28. Vanilla syrup.
29. Kesar syrup.
30. Khus Syrup.
6. Mock tails:-
1. Green apple Moctail.
2. Blue Curacao Mock tail.
3. Berry Mock tail
7. Chocolates
1.Mazana chocolate almond
2.Mazana chocolate cashew
3.Mazana chocolate paan
8. ketchup
1 .Tomato ketchup
35
Figure No. 4. 1 Mapro Foods Pvt. Ltd.
36
4.2 History of Organization
Mapro food Pvt. Ltd. (MFPL) Founded in 1959, the Company had its humble
beginnings in the hill-town of Panchgani, near Mahabaleswar, when a businessman named
Kishore Vora a pharmacist by profession, decided to make some strawberry jam. He then went
on to develop innovative products such as jelly sweets, fruit cubes with fruit juice and rose
syrups with rose petals – all for the first time in country. Today, his ‘hobby’ has borne fruit in
the shape of Mapro, one of the most modern, hygienic, quality-focused fruit product
manufacturing units in India. His vision has been taken forward, thereby transforming the
region around Mahabaleshwar and Panchgani, the erstwhile sleepy hill stations of
Maharashtra, into a flourishing fruit processing zone.
In 1983, Kishore Vora was joined by his nephew Mayur Vora, an IIM Bangalore
alumnus who had two years' experience at Voltas. However, the company could not expand
much beyond Maharashtra and Gujarat, and had to be content with modest growth for
years.The rise of modern retail gave Mapro a nationwide network and access to customers
with deep pockets. Vora invested the extra money back into the business and set up three new
units in Satara and Pune districts in Maharashtra and Pathankot in Punjab. Today, installed
capacity is some 100 tonnes a day.
As growth in the jams and squashes business started slowing in 2005, Mapro entered
the confectionery and chocolate business. The squashes market, pegged at Rs 70 crore, is
growing at 10 percent. By contrast, the Rs 5,000-crore chocolate market has been doubling
every three years. In May 2008, Mayur Vora came up with pulpy fruit chews, branded Falero.
Today they contribute almost 50 percent of revenues.Ashok Vithlani of Polad Trading has
handled the distribution of Mapro products in Gujarat for 15 years. He covers 25,000 retail
shops in 110 towns. Mapro revenues have risen from Rs 25 crore in 2006/07 to more than Rs
100 crore in 2010/11, a compounded annual growth rate of some 32 percent Mapro’s portfolio
of products provides a high quotient of natural fruit in the form of Jams, Fruit bars and chews,
Syrups, Crushes, Squashes, and Dessert Toppings. Its range of premium products such as
Thandai crush and Kesar syrup are made from the finest selection of exotic ingredients.
37
4.2.1 Location of Mapro Foods Private Limited
Figure No. 4. 2 Location of Mapro Foods Pvt. Ltd. on Map
Figure No. 4. 3 Satellite view of Mapro Foods Pvt. Ltd
38
4.2.2 Points Considered in Site Selection of Mapro Foods Private Limited
Site selection plays crucial role in running industry as it makes impact on economies of
company. The factors considered while selecting site of MFPL are discussed below.
Figure No. 4. 4 Points considered in site selection of MFPL
1. Raw Material
As Mapro processes agricultural produce most it requires good quality raw material
from the area nearer to it. The location is selected with a view that industry can procure raw
material i.e. agricultural produce as well as material required for production.
2. Availability of Laborer
It is one of the important point considered while selecting site of Mapro. Owner of
Mapro selected location nearer to the villages which helps to get labourer at cheap rates
throughout the year.
3. Availability of Water and Electricity
The availability of water and electricity is one of the decisive factor considered foremost
in site selection of Mapro Foods Pvt. Ltd. The site is selected as there is abundant supply of
water for industrial activity. The electricity is easily available from the MSEB Wai.
4. Transportation and Communication
The location of industry is selected in such a way that it helps in transportation of
products from the manufacturing unit to the retail outlet. Mapro Foods Private Limited is
located on the way from Surur to Mahabaleshwar which makes it easy transportation and
communication.
Site
selection
Raw
Materail
Availabilit
y Of
labour
Availabilit
y of Water
&
Electricity
Transporta
tion &
Communi
cation
Market
Access
39
5. Market Access
Mahabaleshwar, Panchagani and Wai are the tourist places since British era, the
visionary founder seen scope for the products and started industry. The retail outlets are located
at such tourist places. The location of manufacturing unit at Shendurjane, on the way of Surur
to Mahabaleshwar State highway makes it easy to supply required products at retail outlets
easily.
4.2.3 Layout of Mapro Foods Private Limited
Once the site of the plant has been decided, the next important task before management
is to plan suitable layout for the plant. The layout of manufacturing plant of Mapro foods Pvt.
Ltd. is designed with the view to achieve coordination and efficiency of machines, materials,
and methods in the plant
Figure No. 4. 5 Layout of Mapro Foods Private Limited
1. Sales Counter 13. SCS Line
2. Security Gate 14. Mazana Line
3. Administration office 15. Jam Line
4. Fruit Bar Division 16. Washing Area
5. Warehouse 17. Warehouse
6. Boiler 18. Packaging Material
7. Maintenance Department 19. Return Good Section
8. Sugar Syrup Line 20. Water Treatment Plant
9. Pulping Line 21. Sales Counter
40
10.Quality Control Lab 22. Garden
11.Pet Blowing 23. Parking
12.Cold Storage 24. Toilets, Washroom
4.3 Product Mix of Mapro Foods Private Limited
Figure No. 4. 6 : Products of MFPL
Mapro has wide range of products in Squashes, Crushes and Syrups (SCS) category
consists of 39 lip smacking products. Lounge is new product of Mapro since last two years
(2015) innovated by R and D wing of MFPL, which is mostly appreciated by customers of
Mapro due to its applications and taste. The products other than Lounge have great demand
though market share for syrups, squashes and crushes of Mapro is captured by Lounge, the
product like jam which has to maintain its consistent quality of product. Mazana is also Mapro
innovative product since 2010 which has contributes major share in profit of MFPL.
Product Line
41
Figure No. 4. 7 Product mix
4.3.1 Organization Structure of MFPL
The organizational structure of industry determines the mode in which it
operates and performs. Mapro foods Pvt. Ltd has bureaucratic type of organizational structure,
having levels of management ranging from senior executives to the subordinates Mr. Mayur
Vora, present Managing director of MFPL manages all the department. There is Finance
manager assisted by Finance Admin. and accountants who looks for all the financial
transactions of industry .The factory manager heads all the production departments, Storage
department, Quality control lab, Maintenance department. Every department is headed by line
incharge and line incharge is assisted by line supervisor. Human resource department is headed
Human Resource Manager who looks in all activities of recruitment, training, job specification,
descriptions of the employees with the help of four HR assistant The marketing department of
MFPL is consists of Marketing Manager assisted by Asst. marketing manager, there are RSM
at regional level and sales officers at zonal level, the distributive sales managers and sales
representatives represents Mapro at tehsil and salesmen works at the retail outlets of Mapro
who employs on monthly salaries from Mapro Foods Private Limited.
Figure No. 4. 8 Organization Structure of MFPL
42
4.3.2 Documents required for establishment of industry
1. Maharashtra Pollution Control Board License
All types of industries, operation or process or an extension and addition there to, which
is likely to discharge sewage or trade effluent into the environment or likely to emit any air
pollution into the atmosphere will have to obtain consent of the State Pollution Control Board
under the provisions of Water (Prevention and Control of Pollution) Act, 1975 and Air (P and
CP) Act, 1981.As Mapro Foods Private Limited discharges the effluent or sewage into open
environment, it is mandatory by law to obtain MPCB license. In the license obtained by Mapro
there are consents to establish, renewal, and to operate such industries at threshold level, which
causes harm to the environment. There are following three types of consents
i)Consent to Establish
All the industries and activities needing consent must obtain consent to establish before
actual commencement of the work for establishing the industry activity.
ii) Consent to Operate
This consent needs to be taken before actual commencement of production including
trial production. This consent is valid for certain duration.
iii)Renewal of Consent to Operate
The Consent to Operate is renewed after certain period
2. Boiler License
As it is required to keep check on boiler processes Mapro obtained boiler license. The
malfunctioning of boiler can result into industrial disaster as boiler uses hydraulic pressure So,
MFPL obtained boiler license from Boiler Directorate. Obtain permission to erect the boiler
through an authorize boiler repairer from the Chief Inspector of Boilers.
3. FSSAI License
FSSAI is an abbreviation used for Food Safety and Standards Authority of India. FSSAI
license is mandatory before starting any food business. All the manufacturers, traders,
restaurants who are involved in food business must obtain a 14-digit registration or a license
number (10012022000206) which is printed on all food packages of Mapro.
This step is taken by government’s food licensing & registration system to ensure that
food products undergo certain quality checks, thereby reducing the instances of adulteration,
substandard products and improve accountability of manufacturers by issuing food service
license.
4. Labour License-
Labour license is obtained from Udyogbhavan, Satara. It is needed to have a proof that
Mapro does not employ child laborers in the organization.
43
5. Explosive License
Petroleum and Explosives Safety Organization (PESO) is a government organization
created to regulate and monitor the manufacture, import, export, transport, possession, sale and
use of explosives, petroleum products and compressed gasses as envisaged under the Explosive
Act, 1884 and Petroleum Act, 1934.
6. MSEB License
Maharashtra State Electricity Board provides electricity to MFPL. Mapro Foods
Pvt. Ltd. organization uses electricity provided by Maharashtra State Electricity Board along
with the Solar energy plant owned by the firm. ‘Mapro Foods Pvt. Ltd.’ has got license from
MSEB office, Wai.
7. PAN Card
Every person whose taxable income exceeds the basic exemption limit during an
accounting year, is required to obtain Permanent Account Number (PAN) once for ever by
making application in Form 49A, before 31st
May of the assessment year. In case the total sales,
turnover or gross receipts of the business or profession of the assess, exceeds or is likely to
exceed. Rs.5,00,000 during an accounting year the application for the allotment of PAN should
be made before the end of the accounting year. It is compulsory to apply for PAN, in above
cases even though the tax payable is nil.
4.4 Resource use management:
An the resource use management is necessary part of company the arrangement of
resources are well managed at Mapro
Table No. 4. 2 Resource use management of Mapro Fruit Products
Sr.
No.
Resources Quantity/ Procured from
1. Land 3 Acre.
2. Water MIDC, Wai, Satara.
3. Capital Own Investment.
4. Electric Supply MSEB, Wai, Satara.
5. Raw Material -
6. Machinery and Equipment -
7. Manpower Employees
44
Above table no 4.2 shows resource use management of Mapro The information
related to the resource use management of ‘Mapro Fruit Products’ was collected and
presented in the a table
Resources:
4.4.1 Land :
The land is located at the MIDC area, generally an owner select such a location
because the availability of road linkages and communication facilities are there. Mapro’s Fruit
Products developed the site, by fencing with barbed wire and construction of internal road with
entrance gate.
4.4.2 Water:
The Mapro has adequate water supply which is used for cleaning of equipment; cold
storage and drinking purposes. Treated MIDC water is the source of Mapro . It has good
facilities for its storage without contamination and also water is used as an ingredient in
processing and cooking.
4.4.3 Raw Material:
The raw material is the backbone of processing industry. The pulp is a main raw
material of Mapro’s the other raw material is sugar, pectin, citric acid and flavours. The fruit
pulp is collected from different areas. The other raw material required for industry they are
collected from the different regions and countries from company certified with ISO and
FASSAI.
Table No. 4. 3 Name of places from where raw material procure
Sr. No. Type of Raw Material Places Where Procured
A.
1.
2.
3.
4.
5.
Fruits or Fruit Pulps
Strawberry
Alphanso Mango
Banana Raw
Apple pulp
Orange juice
Mahabaleshwar & Panchagani
Konkan
Jalgaon
Himachal Pradesh
Nagpur
B. Sugar / sugar syrup Varna Sugar Industry, Bhuinj Sugar Industry
C. Flavor Mumbai
D. Color Nirali Pvt Ltd Mumbai
E. Pectin Yantai Andre Pectin Co., Ltd( China )
45
Above table no: 4.3 shows the information related to the places from which raw material
procured of ‘Mapro Fruit Products’ was collected and presented in the above table.
4.4.4 Machinery and Equipment’s:
The different machinery and equipment is required for the processing plant based on
the type of pulp received and products proposed. Create Changes in machineries according
product demand
1. Sugar syrup tank
Figure No. 4. 9: Sugar syrup machinery
Purchase Price – Rs.5,00,000
Capacity- 3200 Lit
Sugar syrup tank contains sugar syrup which is having capacity of 3200 liter’s. It is
made up of stainless steel . It is directly connected to sugar syrup preparation plant besides
the production line pipes. As the syrup is required the syrup order is given . The required
quantity of syrup transferred to the tank
F. Preservatives (Potassium
Metabisulphite,KMS)
Shandong Kunda Biotechnology Company
Limited( China )
G. Water From Own Well
46
2. Syrup Mixing Tank
Figure No. 4. 10 Mixing tank
Purchase Price – Rs. 3 lakhs
Capacity- 2,200 Lit
Use – Used to mix ingredients of product.
Its quantity holding is of 2200 litres. It is connected to syrup tank ,pectine tank
,autopack machine, A 5 Hp motor converts syrup from sugar syrup tank to tank , Both the
tanks are interconnected so the liquid from one tank can be transferred to another for the
convenience.
3. Internal Bottle Washer
Figure No. 4. 11 Internal bottle washer
Capacity – 32 bottles per min.
Use- the ingredients are mixed with sugar syrup in syrup mixing tank
This machine is used for washing the bottles internally with a small pressure stream of
water. It washes nearly 16 bottles in one revolution. The equipement is mainly uses to clean
the plastic bottles, glass bottle .
47
4. Capping machine
Figure No. 4. 12 Capping machine
Used – used to separate bottles for ease of sleeving by placing gap between two bottles
Functioning – As bottles moves it seperates them by the srew type structure of rotary
seperatr
10. Wetness
Figure No. 4. 13 Wetness
Purchase Price – Rs. 15,000
Use – Used to blow the water droplets present on sleeves of bottle by blowing air with
pressure on bottles.
Table No. 4. 4 List of machinery and equipment used by Mapro
Sr.
No.
Machinery and
Equipment
Unit/
Capacity
No. Uses
1. Sugar syrup tank (5000Litr.) 1 To store sugar syrup
2. Stirrer with motor - 1 To blend the mixture.
3. Kettle (200Litr.) 4 To boil the pulp.
4. Corking Chapper - 1 To press the metallic cap
5. Filler Machine 12000BPH 1 To fill hot syrup into jar.
48
Functioning- As bottles moves the sensor detects and blower wipes out the droplets by
pressure.
11.Price and manufacturing date printer
Figure No. 4. 14 Printer
Purchase Price – Rs. 2,00,000
Use – Used to Print price, manufacturing date, batch no, on product
Table No: 4.4 List of machinery and equipment used by Mapro
The above table no.4.4 shows information related to the other machinery used in
Mapro was collected and presented in the table.
6. Cooling Tunnel 1
To reduce the temperature of
jam.
7. Belt conveyor 2
For transporting light- and
medium-weight loads between
operations, departments
8. Labeling Machine 1 For labelling purpose.
9. Tape Machine 1 For tapping carton boxes
10. Pallet truck 1
Move the material from one place
to another.
11. Pallets 100 To place the material.
12. Heat exchanger 1 To exchange heat in kettle.
13. Transfer pump 1 Transferring jam syrup in filler
14. Hand trolley 5 To move the pulp barrel.
15. Boiler 1 To generating the steam.
49
4.4.5 Manpower
At Mapro Fruit Products the management system is the framework of processes and
procedure used to complete an organizational objective. It has 94 office staff members and
labours. The labour required for processing department, packaging department, storage
department, marketing department, account department, electrical
Table No. 4. 5 List and number of employees worked at Mapro
Sr. No. Category Number of workers
Administrative Staff
1. Unit Manager 1
2. Marketing Manager 1
3. Purchase Manager 1
4. Personnel Assistant 8
5. Other Employees 9
Laboratory Staff
1. R&D 1
2. Quality Manager 1
3. Production Manager 1
4. Assistant 5
5. Workers 4
Cold Storage
1. Manager 1
2. Assistant 2
3. Workers 2
Boiler & ETP
1. Manager 1
2. Assistant 1
3. Workers 12
50
Above table No.4.5 shows that employee of MFPL in which Mapro has 117 total
administrative and worker staff. In which jam and ketchup department has 23 employees
in which 16 are workers and 7 are helper.
4.5 Human Resource Management
Human Resource Management is a strategic approach for acquiring, developing,
managing, motivating and gaining the commitment of the organization’s key resource –
the people who work in and for it.HRM as organizational function of Mapro Foods Pvt.
Ltd. deals with or provides leadership and advice for dealing with all issues related to the
people in an organization. The department deals with compensation, hiring, performance
Sugar Syrup Department
1. Incharge 1
2. Worker 2
Maintenance Department
1. Head 1
2. Electrician 6
3. Workers 9
Others
1. Security Guard 6
2. Driver 7
Jam Department Permanent
Labour:-
1. Incharge 2
2. Supervisor 2
3. Operator 5
4. Kettelmen 2
Jam Department Daily Paid / Semi-
Skilled:-
1. Workers 16
2. Helpers 7
51
management, organization development, safety, wellness, benefits, employee motivation,
communication, administration, training and development of the personnel working in
MFPL.
The Human resource department in the Mapro Foods Pvt. Ltd. is headed by Human
Resource Manager. There is staff of four members dealing with issues of the HR
department and which functions as the HR department supporting staff. The HRM
department members provide the knowledge, necessary tools, training, administrative
services, coaching, legal and management advice, and talent management oversight that
the rest of the organization needs for successful operation.HR department of MFPL works
for the organizational development that generates the culture of the organization. It is
charged with oversight responsibilities to ensure that the organization appropriately builds
teams and inspires employee empowerment.
4.5.1 Human Resource Department policies
1. Leave policy
1) Weekly off- MFPL runs throughout the year with weekly off on Sunday for official
staff and Tuesday for technical staff. Due to load shading on Tuesday in the area technical
staff have weekly off on that day. There is no weekly off for the salesmen who works at
retail outlet of MFPL.
2) Emergency leave- MFPL gives emergency leaves to the its workers but these leaves are
non-paid leaves.
3) Paid holidays- National holidays such as independence day, Republic day are paid
holidays for all workers of MFPL.
2. Recruitment policy
1) Age- The age of workers to be recruited for any post in industry must be above 18. As
per Govt. norms it is mandatory not to employ child labour in any industry, hence this
policy is adopted by MFPL.
2) Education- The worker to be recruited must have required qualification for the post to
be recruited.
3) Interview- At the time of interview HR manager questions the candidate who is going
to work in the industry. The interview is conducted to analyse the candidate suitability and
efficiency to do particular job.
4) Medical fitness certificate– The candidate have to submit required documents to prove
that he/she is medically fit for the work at industry by obtaining medical certificate from
doctor.
52
3. Employee Welfare Policy
1) Medical Check-up – Mapro arranges medical check up annually. It includes blood, urine
tests.
2) Medical Assistance – If there is any accident in the processing unit or outside industry
Mapro assist in medical treatment by means medical fees.
3) EPFO - Employee’s Provident Fund (EPF) is a retirement benefit scheme that’s
available to all salaried employees. It’s a savings platform that helps employees save a
fraction of their salary every month that can be used in the event that you are rendered
unable to work, or upon retirement.
4. Other Policies
1) No Alcohol Consumption – The consumption of alcohol and alcoholic product is
prohibited in the premises of Mapro Foods Private Limited.
2) Restriction on drugs and tobacco products consumption – The consumption of drugs
and tobacco product is restricted in area of company. It helped Mapro from the
contamination in the products.
4.5.2 HRM's Focus
HRM in Mapro has a strategic and comprehensive approach to manage people and
the workplace culture and environment. Effective HRM department enabled employees to
contribute effectively and productively to the overall company direction and the
accomplishment of the organization's goals and objectives.
4.5.3 Human Resource Management and Line Managers
HRM functions are also performed by line managers who are directly responsible
for the engagement, contribution, and productivity of their reporting staff members. They
are also responsible for the ongoing development and retention of superior employees
53
4.5.4 Functions of Human Resource Management
1. Recruitment
The Sources of Recruitment of Employees are as follows
Figure No. 4. 15 Sources of recruitment
(A) Internal Sources
When a vacancy is available in the organization, it is given to an employee who is already
on the pay-roll of MFPL. Internal sources include promotion, transfer and in certain cases
demotion. When a higher post is given to a deserving employee, it motivates all other
employees of the organization to work hard.
Methods of Internal Sources :
1. Promotions
Promotions refer to shifting of persons to positions carrying better prestige, higher
responsibilities and more pay. The higher positions falling vacant are filled up from within
the existing employees of MFPL. A promotion does not increase the number of persons in
the organization. A person going to get a higher position will vacate his present position.
Promotion motivates employees to improve their performance so that they can also get
promotion.
2. Recommendation of Existing Employees
The worker are familiar with existing conditions of industry, who recommends
appropriate candidate to the Company.
(B)External Sources:
When existing employees are not suitable to recruit at higher positions, the
organization uses the external sources for recruitment. In peak production season more
Sources of Recruitment
Internal Sources
Promotio
n
Empo
lyee
Refer
ences
External Sources
Labour
Contract
Factory
gate
Former
Employee
Casua
l
Caller
s
Central
Applica
tional
File
54
persons are needed, i.e. in month of February to June. The entry of qualitative persons
from outside is in the long-run interest of the MFPL
Methods of External Sources:
1. Labour Contractors
This method of recruitment is prevalent all the factories and also in MFPL for
hiring unskilled and semi-skilled workers. The contractors keep themselves in touch with
the labour and bring the workers at the factory where they are required. The contractors
identified by the MFPL hires the labour from Nagpur (MH) and Madhya Pradesh in return
they get commission for the number of persons supplied by them.
2. Factory Gates
Certain workers from local area of Wai present themselves at the factory gate every
day for employment. This method of recruitment is very popular in India and also in MFPL
for unskilled or semi-skilled labour.The desirable candidates are selected by the first line
supervisors. The major disadvantage of this system is that the person selected may not be
suitable for the vacancy. Hence this method is used only when there is intense need of
labour at peak season of production in MFPL.
3. Former Employees
In case, employees have been laid off or have left the MFPL at their own, they are
taken back in vacancies, if they are interested in joining the concern (provided that their
record is good).
4. Casual Callers
Those personnel who casually come to the company for employment are
considered for the vacant post. It is most economical method of recruitment.in MFPL it is
rarely used as such employees are discontinuing their work.
5. Central Application File
A file of past applicants who were not selected earlier is maintained. In order to
keep the file alive, applications in the files are checked at periodical interval as per the
vacancy in company.
55
4.4.5 Working season for the year 2018-19 of MFPL
Mapro’s company worked 313 days in the year 2018-19. The working days in each
month are shown in the graph 4.1 below
Graph No. 4. 1: MFPL’s production line working days
Mapro Foods Private Limited works throughout the year except holidays on Sunday for
official staff and Tuesday for technical staff. National holidays such as independence day,
Republic day are paid holidays for all workers. Mapro get Higher sale in vacation period
because of many peoples comes for relaxing, in Summer season mapro Get higher sale.
4.6 Production management:-
4.6.1 Production Department:-
1. Production Planning:-
In Mapro annual production target for the next year are prepared on the basis of installed
production capacity of the plant and production data of the previous year. Necessary
feedback is also taken from marketing department while fixing the production targets. The
production targets are presented to the corporate office for review and approval by
managing director, the plant managers are informed the same. The production and
consumption ratios for the previous years are duly considered. All the data are compiled
into form and production budget get fixed. A copy of the production budget is sent to
finance department for preparing the finance budget. This production budget then acts as
the basis for further performance monitoring. Based on the production plans, purchase raw
31 27
26 26
27
25
27 27
25
27
26 26
26
24
21
16
11
6
56
materials. In the event of any change in the annual production plant becoming necessary,
the corresponding change in the raw material requirements are intimated to the purchase
department. Production planning department receives data from all the plants and the other
interfacing departments and compiles them. Various reports- daily production reports
monthly reports and yearly reports are sent to the management.
2. Type of Production System:- Batch production system:-
At Mapro Fruit Products here the firm either receives order from the customer at regular
intervals or it may produce the product to satisfy the demand. It has well designed file of
its plans, material requirement and instructions for the ready reference. It can also purchase
materials required in bulk in advance. As the frequency of regular orders goes on
increasing the batch production system becomes mass production system. Also in case of
the demand for a particular product ceases, the plant and machinery can be used for
producing other products with slight modification in layout or in machinery and
equipment. And if the demands of particular product will increases then the production
will manages
57
4.6.2 Products Selected for Study:-
Grape Crush:-
Ingredients: - Grape Crush pulp, sugar, pectin, colour, flavour, citric acid etc.
Nutritional Facts * Approx. Value 100 gm.
Table No. 4. 6: Nutritional facts for Grape Crush
Nutritional Facts
(Approx. Values)
Sr.
No.
Contents
Nutritional values Per
100 ml
1 Energy 298.0 Kcal
2 Total Sugar 75 g
3 Carbohydrate 76 g
4 Fat 0.00 g
5 Protein 0.10 g
Table No. 4. 7. Availability of Ingredients in Grape Crush
Ingredient Details
Sr. No. Ingredients
1 Sugar
2 Acidity regulator
3 water
4 thickener
5 Common salt
6 Food colour
7 Flavors
8 Class II preservative
Table No:4.7.1 shows the ingredient used in Mapro for per kg of Grape Crush. It found
that Grape Crush contains higher amount of Sugar, acidity regulator, water, thickner,
common salt, food color etc.
58
4.6.3 Processing flow chart for making Grape crush :
Figure No. 4. 16 Processing flow chart for Making Grape crush
4.6.4 Grape crush preparation process:-
1. Collection of raw material: -
The first part of crush preparation process is start with the collection of raw material. The
raw material is collected from different section of the unit; the main section of storage of
raw material is the cold storage where fruit pulps are stored. Another section is raw
material section, is especially flavours, pectin and other preservatives are stored in that
particular area where hygienic condition is maintained.
All raw material is checked before used to make the crush; aspects of quality are checked
as per quality parameter of particular raw material.
Add pulp/juice (As per specification)
Addition of pectin (dissolve in hot water in a pectin mixing tank) continuous
stirring
Send a sample to Q.C. for analysis maintain brix (57 to 580
Bx)
Addition of color and flavor and preservative mixing
Filling (Pet Bottles) Labelling coding
Packed in corrugated box storage
59
2. Addition of Grape pulp:-
Figure No. 4. 17 Mixing tank
Grape pulp are added into tank, tank are used for boiling the pulp and making the crush.
The tank used for crush making process is mainly having 2250 liter’s capacity. The blender
is also attached with the tank for the purpose to blend the mixture of ingredients. Added
fruit pulp are boiled with the used of steam till the aspects of quality will gain. Temperature
is adjusted by the heat exchanger pump. Well experienced men observed an and analyse
the process, as per visual checking handling is go on.
3. Addition of hot syrup and pectin:-
Figure No. 4. 18 Hot sugar syrup and pectin mixture
As per the instruction of supervisor hot sugar syrup are added into tank. Sugar syrup is
prepared in advanced in sugar syrup tank and then the syrup is taken into tank in required
amount by the turning knob on of sugar syrup tank. Added sugar syrup are boiled and
blended into kettle in this process cattlemen analyses the texture of material which are
boiled in the tank.
60
Pectin is added into the tank which is the ingredient of Crush. The role of pectin is to
thicken the syrup. The quantity of raw material is fixed. The all quantity are fixed by the
recipe maker of the company. As per their instruction process of crush making is
happened.
4. Checking of total soluble solid (T.S.S)
Figure No. 4. 19 Hand refractometer
The T.S.S is major by the use of hand refractometer. The pulp are and syrup are boiled till
it gets 68° Brix
5. Addition of flavours and fragrances:-
Flavours and fragrances are also fixed for all the recipes. Flavours are added for increasing
the taste and quality of the crush. Flavours enhance the taste of the crush. A fragrance
gives aroma to the Crush. The content is again stirred for about 10 minutes for proper
mixing of crush. Here the Crush preparation process is completed and next filling ofbottled
is started.
Figure No. 4. 20 Flavours and fragrances
61
6. Filling hot into sterilized bottled:-
Figure No. 4. 21 Filling machine
The prepare content are passed through the pipe with help of pump into the holding tank.
Pipes are connected between the holding tank and the filling machine. Operator operate
this machine, as per their handling filler gets the content into filling machine and the
process of filling hot recipe into the plastic jar and glass bottle.
6. Covering:-
Figure No. 4. 22 Sleevs applicator machine
Through conveyer belt, bottles are carried to auto covering machine. Labours at the
inspection area machine checks if the bottles are covered properly. bottle is passed
62
through sealing machine; heat of the sealing machine is fixed so the bottle gets sealed
without any damage.
8. Cooling: -
Conveyer belt carries bottles into the cooling tunnel; here the bottles are also washed.
When the bottles enter the cooling tunnel the temperature of bottle is 78°C and when it
exits the tunnel temperature of bottle is 57°C.
9. Packing:-
After labeling bottles are packed in cardboard boxes. Each box has different capacity of
hold bottles in which each bottle holds 1 kg, 500gm ,250gm ,750 gm Crush.
Boxes are packed by using tape machine which is used for tapping carton boxes.
Storage:-
Figure No. 4. 23 Storage of final product
After boxing boxes are stored in stored houses. From store houses, boxes are transported
to various destinations as per orders
63
2. Mint candy :
Ingredients: sugar, flavor, Glucose
Nutritional Facts *Approx value per 100 gm:
Table No. 4. 8. Nutritional facts for Mint candy
Figure No. 4. 24 Mint candy
As shown in above table no. 4.8 total energy in 100gm is 384.13 Kcal and carbohydrates
is 99.24g and protein is 0gm mint has a higher amount of suger 99.06g.
Table No. 4. 9 Availability of Ingredients in Mint candy :
Sr. No Name of Ingredients
1 Sugar
2 Glucose
3 Flavor
Table No: 4.9 shows the ingredient used in Mapro for per kg of mint candy. It found
that Mint candy contains higher amount of Sugar, Glucose, Flavor
Facts
Nutritional
values
Energy 384.13 kcal
Carbohydrates 99.24g
Protein 0 g
Sugar 99.06 g
Fat Nil
64
4.6.5 Flow chart for making mint candy: -
4.6.6 Procedure for making Mint candy: -
1. Collection of raw material: -
The first part of the mint preparation process is started with the collection of raw material.
The raw material is collected from a different section of the unit; the main section of the
storage of raw material is the cold storage where the material is stored. Another section is
the raw material section, is especially flavors, and other preservatives are stored in that
particular area where the hygienic condition is maintained. All raw material is checked
before used to make the candy; aspects of quality are checked as per the quality parameter
of particular raw material.
2. Mixing of raw material: -
Collection of Raw material
Mixing of raw material
Boiled all ingredient in mixing tank (1400
C)
Delivered liquid candy into deposition machine
Immediate cool down it (100
C)
Wrape it with help of wrapping machine
Packaging
Storage
65
After collection of all raw material i.e. Suger, flavor, glucose mix it in mixing tank till all
material dissolve well
3. Boiling: -
After mixing all ingredient boiled it till 1400
C temperature, if the temperature goes
below 1400
c its cause error and it's not use again.
4. Delivered to the Deposition machine: -
After all raw material and ingredients become liquid then liquid form candy will
be deposited to deposition machine, In deposition machine will be dropped liquid candy
over the skeleton of candy and then candy will go to the cooling section.
5. Cooling: -
After the deposition of liquid candy, then skeleton comes to the cooling section and then
candy will be cool down in temperature of 120
C for their hardness.
6. Wrapping: -
After cooling candy then it will immediately wrap by using machinery.
7. Packaging: -
After wrapping candy then it will fill to bottles manually bottles are packed in
cardboard boxes. Each box has a different capacity of hold boxes/bottles in which each
bottle holds 1 kg, 500gm, 250gm, 750 gm mint. Boxes are packed by using a tape machine
that is used for tapping carton boxes.
8. Storage: -
After boxing boxes are stored in stored houses. From storehouses, boxes are transported
to various destinations as per orders
4.6.7 Production Department Policy
The Production Manager of the respective line is responsible for making sure that quality
raw materials are provided and quality products are manufactured. He makes sure that
work is carried out smoothly, and supervises procedures for making work more efficient
and more effective.
The Mapro Foods Pvt. Ltd. has build quality into every stage of the production process.
Every employee is expected to take responsibility for managing quality issues in order to
make sure that waste is minimized and quality maximized.
4.6.8 Objectives of production department
1. To keep production process running smoothly.
66
2. To achieve effectiveness in the production.
3. Proper Capacity utilization.
4. Flexibility in production.
5. To ensure quality of both raw materials and finished product.
6. The continue unhindered production.
7. Monitoring the quantity and quality of products coming out of a production line.
4.6.9 Production Planning decisions
1. Operating planning
The production and planning department set standards and targets for the production
process. The quantity and quality of products coming from production line is closely
monitored. The MFPL has quality control approach, hence the quality is monitored by the
supervisors and employees at every stage of production, rather than at the end
2. Capacity planning
Capacity planning is the process of determining the production capacity needed by an
organization to meet changing demands for its products. In the context of capacity
planning, design capacity is the maximum amount of work that an organization is capable
of completing in a given period. This is a more conservative strategy and opposite of a
lead capacity strategy It refers to adding capacity only after the organization is running at
full capacity or beyond due to increase in demand. MFPL adopts this strategy because the
products are cost sensitive and and thereby adopting such strategy decreases risk of waste.
Also the products of this line are at maturity stage of their own life cycle i.e. PLC.
For production line MFPL seen this strategy advantageous than the lean strategy because
it reduces risk of overproduction, achieves greater productivity due to higher utilization
levels, increases ability to put off large investments as long as possible, and saves
organization in investing in the products having less or mere demand in market. It also
adds capacity in small amounts in response to changing demand in the market.
4.6.10 Controlling decisions
1. Controlling inventories for production: - The production manager of line ensures the
stock required for production is available and provides it for production. Here the
purchasing department is responsible for providing the materials, components and
equipment required to keep the production process running smoothly.
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Mapro Pvt Ltd

  • 1. Dedication... Gratitude in the beginning. Good business leaders create a vision, articulate the vision and passionately own the vision. And to achieve these, we need supreme proponent, guide, motivator that are our teachers. Genuinely thanks to all teachers who manipulated us for moving forward. I dedicate this report to my family, friends and teachers without whom it was almost impossible for me to complete this report. Samir
  • 2. PROJECT REPORT ON MANAGEMENT OF AGRO-BASED INDUSTRIES IN “MAPRO FOODS PVT. LTD.” AT SHENDURJANE (WAI), SATARA By Mr. SAMIR SHAIKHLAL PATHAN (Reg. No. BAB021/2016) Submitted to MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI DIST. AHMEDNAGAR (MH) In partial fulfilment of the requirement for the degree of BACHELOR OF BUSINESS ADMINISTRATION (AGRICULTURE) COLLEGE OF AGRICULTURE BUSINESS MANAGEMENT, BARAMATI - 413 115 2019-20
  • 3. MANAGEMENT OF AGRO BASED INDUSTRIES IN “MAPRO FOODS PVT. LTD.” AT SHENDURJANE (WAI), SATARA A Project Report submitted to the MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI DIST.AHMEDNAGAR (MH) In partial fulfillment of the requirement for the degree of BACHELOR OF BUSINESS ADMINISTRATION (AGRICULTURE) By Mr. SAMIR SHAIKHLAL PATHAN (Reg. No. BAB021/2016) Approved by Advisory Committee Dr. B. N. PAWAR DI’s Nominee Prof. A.R.Kale Coordinator Prof. R. M. Takale Module In-charge Prof. P.L.Kolekar Committee Member Prof. R. B. Shinde Committee Member Prof. S.S.Walke Committee Member COLLEGE OF AGRICULTURE BUSINESS MANAGEMENT, BARAMATI - 413 115 (Maharashtra) 2019-20
  • 4. CERTIFICATE OF ORIGINALITY This is to certify that the project entitled ‘Management of Agro Based Industries in “MAPRO FOODS PVT. LTD.”, at SHENDURJANE (WAI), SATARA’ is an original work of the student and is being submitted in partial fulfillment for the award of degree in Bachelor of Business Administration (Agri.) of Mahatma Phule Krishi Vidyapeeth, Rahuri This report has not been submitted earlier either to this University or any other University / Institution for the fulfillment of the requirement of a course of study. Mr. S. S. PATHAN (Reg. No. BAB021/2016) Place: Baramati Date: / /2019 Prof. R. M. Takale Assistant Professor of Agril. Marketing, College of Agri. Business Management, Baramati
  • 5. CERTIFICATE This is to certify that the project entitled ‘Management of Agro Based Industries in “MAPRO FOODS PVT. LTD.”, at SHENDURJANE (WAI), SATARA’ submitted to the Mahatma Phule Krishi Vidyapeeth, Rahuri in partial fulfillment of the requirements for the degree of BACHELOR OF BUSINESS ADMINISTRATION (AGRICULTURE) embodies the results of a piece of bonafide work carried out by Mr. SAMIR SHAIKHLAL PATHAN (Reg. No. BAB021/2016) under my guidance and that no part of the project work has been submitted for any other degree or diploma. The assistance and the help rendered during the training period have been duly acknowledged. The suggestions made by the Evaluation Committee are incorporated in the project report. Place: Baramati (Prof. R. M. Takale) Date: / /2019
  • 6. CERTIFICATE This is to certify that the Project entitled ‘Management of Agro Based Industries in “MAPRO FOODS PVT. LTD.”, at SHENDURJANE (WAI), SATARA’ submitted to the Mahatma Phule Krishi Vidyapeeth, Rahuri for award of the degree of BACHELOR OF BUSINESS ADMINISTRATION (AGRICULTURE) embodies the results of a piece of bonafide Project carried out by Mr. SAMIR SHAIKHLAL PATHAN (Reg. No. BAB021/2016) under the guidance of Prof. R. M. Takale, Module In-charge, Experiential Learning Programme and that no part of the Project has been submitted for any other degree or diploma. Place: Baramati. Date: / /2019 Principal
  • 7. ACKNOWLEDGEMENT It is my special right to record my cardinal thanks to respected Mr. Mayur Vora, Owner of Mapro Foods Pvt. Ltd. for giving us opportunity to undertake this project work and for providing us with essential amenities for completion of this project. I am deeply indebted to Dr. B. N. PAWAR, DI’s Nominee for ELP, College of Agriculture, Pune for their outstanding guidance to complete the project report. I feel extremely honored for the opportunity bestowed upon me to work under the guidance of Prof. R. M. Takale, Project guide and Professor of Agril. Marketing for his judicious and invaluable guidance, kind suggestion, constant interest, kind help and untiring efforts during project work, which helped a lot to complete the important work of project. I deeply express my heartiest thanks to Prof. N. A. Nalawade, Director of Agriculture Development Trust, Baramati, Prof. Jaya Tiwari, Principal (I/C) of CABM, Baramati and Professor of Agril. Economics, Baramati, Prof. A. R. Kale, Course Co- ordinator for Experiential Learning Programme. With a great gratitude, I realize that I was privileged to have the valuable guidance and suggestions of Prof. S.S. Walke, Assistant Professor of Agri. Marketing , Prof. R.B. Shinde , Professor of Agri. Business managementand and Prof. P. L. Kolekar Professor of Agril. Economics, who have made available all the requisite facilities with constant encouragement throughout the period of my research work There are no words in my account to express my deepest sense of gratitude to my all friends and to all those persons who helps me directly or indirectly to make this project complete in all respect successfully. The enthusiastic, cheerful and selfless support of my dear friends through both the bright and dark phases of my work has been invaluable to me. I offer my sincere thanks to these friends. Last but not least, I won’t forget to express my deep sense and respect towards my parents, for their moral support and showering love and affection on me. Place: Baramati Date: / /2019 (Samir pathan)
  • 8. ABBREVIATIONS Amt. APEDA BCR BEP Bn./bn. BRC Conc. D.F. Dist. ELP EPF ETP EU FAO FAOSTAT FDI FIFO FMCG FSSAI FY GDP GFSI Gm./g. Govt. GRN HACCP HP HR HRM IB IC ID IIM IQF ISO Kcal Kg. L B H Lit. MAIDC max. MFPL Amount Agriculture and Processed Food Products Export Development Authority Benefit Cost Ratio Break Even Point Billion British Retail Consortium Concentrated Differential Factor District Experiential Learning Programme Employee Provident Fund Effluent Treatment Plant European Union Food and Agriculture Organization Food and Agriculture Organization Corporate Statistical Database Foreign Direct Investment First In First Out Fast-Moving Consumer Goods Food Safety and Standards Authority of India Financial Year Gross Domestic Product Global Food Safety Initiative Grams/gram Government Goods Receipt Note Hazard Analysis Critical Control Point Horse Power Human Resource Human Resource Management Incremental Benefit Incremental Cost Identity Indian Institute of management Instant Quick Freezing International Standard Organisation Kilo calories Kilogram Length Breadth Height Litre Maharashtra Agro Industry Development Corporation Maximum Mapro Foods Private Limited
  • 9. MH Min. MKT Ml Mm Mn. MNC MoFPI MPCB MSEB MT. NABARD NOC NPW P&CP PAN PESO PLC PM ppm PSL QC QMS R&D RM ROPP Cap Rs. RSM RTC RTE SCM SCS Maharashtra State Electricity Board Minute Marketing Millilitre Millimetre Million Multi National Company Ministry of Food Processing Industries Maharashtra Pollution Control Board Maharashtra State Electricity Board Metric Tonne National Bank for Agriculture and Rural Development No Objection Certificate Net Present Worth Prevention and Control of Pollution Permanent Account Number Petroleum and Explosives Safety Organization Product Life Cycle Packaging Material Parts Per Million Private Sector Lending Quality Control Quality Management System Research and Development Raw Material Roll on Pilfer Proof Cap Rupees Regional Sales Manager Read to Cook Read to Eat Supply Chain Management Squashes, Crushes and Syrups SS Stainless Steel SSI SWOT Small Scale Industry Strength Weakness Opportunity Threat T. Tonne TIN TSS US US $ VAT WTP Yr. Tax Information Network Total Soluble Solids United States United States Dollar Value Added Tax Water Treatment Plant Year
  • 10. 1 Content 1. INTRODUCTION 5 1.1 CONCEPT AND MEANING OF AGRO-BASED INDUSTRY 8 1.1.1 Agro-Industry 8 1.1.2 Meaning Of agro-based industry : 8 1.1.3 Def of Agro-based industry : 8 1.2 GLOBAL SCENARIO OF AGRO-BASED INDUSTRY: 9 1.2.1 India’s Sectors Wise Processing Level 11 1.3 GLOBAL SCENARIO OF GRAPES 11 1.3.1 Global Grape Production 12 1.3.2 Export of Grape: - 13 1.3.3 Indian Grape Production: - 14 1.4 EXPORT OF PROCESSED FOOD AND RELATED PRODUCT: 15 1.4.1 Tax incentive and Policy Support for India’s Agribusiness 17 1.4.2 Goods and Service Tax (GST) 17 1.5 MAHARASHTRA SCENARIO OF AGRO-BASED INDUSTRY : 18 1.5.1 Agro-based Units in India and Maharashtra’s Shares : 19 1.6 IMPORTANCE OF AGRO-BASED INDUSTRY: 20 1.7 OBJECTIVES AND SCOPE OF STUDY: 21 1.7.1 Objectives of study: 21 1.7.2 Scope of Study: - 21 1.7.3 Limitation of Study: - 21 1.7.4 Presentation of Report: 21 2 REVIEW OF LITERATURE 22 2.1 TO STUDY THE MANAGEMENT ASPECTS OF THE MAPRO PVT. LTD. 22 2.2 TO ESTIMATE PER UNIT COST OF PRODUCTION AND WORKOUT PROFITABILITY OF SELECTED PRODUCTS OF MAPRO FOODS PVT. LTD. 22 2.3 TO WORKOUT MARKETING COST MARKETING COST AND PRICE SPREAD OF SELECTED PRODUCTS 22 2.4 TO STUDY CONSUMER BEHAVIOUR AND PREFERENCES FOR SELECTED PRODUCTS. 23 Chap. No. Title Page No. Certificate of Advisory Committee I Certificate of Originality II Certificate of Company III Certificate of Project Guide IV Certificate of Principal V Acknowledgement VI Abbreviations VII EXECUTIVE SUMMARY
  • 11. 2 2.5 TO IDENTIFY THE PROBLEMS FACED IN PRODUCTION , PROCESSING AND MARKETING OF SELECTED PRODUCTS OF MAPRO FOODS PVT. LTD. AND SUGGESTIONS TO OVERCOME THE PROBLEMS. 23 3 RESEARCH METHODOLOGY 24 3.1 SELECTION OF STUDY AREA 24 3.1.1 Selection of Country and state 24 3.1.2 Selection of district and locality 25 3.2 SURVEY OF DIFFERENT AGRO INDUSTRIES IN SATARA DISTRICT 25 3.3 MAJOR PLAYERS TO THE MAPRO:- 26 3.3.1 Kissan:- 26 3.3.2 Manama- 27 3.3.3 Tops:- 27 3.3.4 Mala’s :- 27 3.3.5 MADHUSAGAR 28 3.4 DATA REQUIREMENT 28 3.4.1 Source of Data: 28 3.4.2 Primary Data: 28 3.4.3 Secondary Data : 28 3.5 DATA ANALYSIS TECHNIQUES: 29 4 RESULTS AND DISCUSSION 32 4.1 GENERAL INFORMATION OF COMPANY 32 4.1.1 General Company Profile 32 4.1.2 Product Portfolio 33 4.2 HISTORY OF ORGANIZATION 36 4.2.1 Location of Mapro Foods Private Limited 37 4.2.2 Points Considered in Site Selection of Mapro Foods Private Limited 38 4.2.3 Layout of Mapro Foods Private Limited 39 4.3 PRODUCT MIX OF MAPRO FOODS PRIVATE LIMITED 40 4.3.1 Organization Structure of MFPL 41 4.3.2 Documents required for establishment of industry 42 4.4 RESOURCE USE MANAGEMENT: 43 4.4.1 Land : 44 4.4.2 Water: 44 4.4.3 Raw Material: 44 4.4.4 Machinery and Equipment’s: 45 4.4.5 Manpower 49 4.5 HUMAN RESOURCE MANAGEMENT 50 4.5.1 Human Resource Department policies 51 4.5.2 HRM's Focus 52 4.5.3 Human Resource Management and Line Managers 52 4.5.4 Functions of Human Resource Management 53
  • 12. 3 4.6 PRODUCTION MANAGEMENT:- 55 4.6.1 Production Department:- 55 4.6.2 Products Selected for Study:- 57 4.6.3 Processing flow chart for making Grape crush : 58 4.6.4 Grape crush preparation process:- 58 4.6.5 Flow chart for making mint candy: - 64 4.6.6 Procedure for making Mint candy: - 64 4.6.7 Production Department Policy 65 4.6.8 Objectives of production department 65 4.6.9 Production Planning decisions 66 4.6.10 Controlling decisions 66 4.6.11 Precautionary measures taken during material handling 67 4.7 QUALITY MANAGEMENT 68 4.7.1 Quality control department structure of MFPL 68 4.7.2 Quality department policy for acceptance of raw material 68 4.7.3 Quality Department Policy for acceptance of raw material 68 4.7.4 Quality management:- 69 4.7.5 Final Product of Mint mint candy 71 4.7.6 Quality Policies of MFPL:- 71 4.7.7 Certificates or credential:- 73 4.8 ECONOMIC ANALYSIS OF SELECTED PRODUCT:- 75 4.8.1 Production data of Mapro Fruit Products whole unit in 2017-18: - 75 4.8.2 Capital Investment for Grape Crush:- 77 4.8.3 Capital Investment for Construction of Building 78 4.8.4 Machinaries and equipment’s in SCS department: 79 4.8.5 The raw material required for Grape crush: 79 4.8.6 Variable Cost for Grape crush: 80 4.8.7 Per unit cost of Processing for Grape crush: - 81 4.8.8 Break-Even Point for Grape crush: - 82 4.8.9 The margin of Safety: - 83 4.8.10 Capital Investment for Mint candy:- 84 4.8.11 Capital Investment for Construction of Building 85 4.8.12 Raw Material required for mint candy: 86 4.8.13 Variable Cost for Mint candy: 86 4.8.14 Per unit cost of Processing for Mint candy 87 4.8.15 Break-Even Point for Mint candy: - 88 4.8.16 The margin of Safety: - 89 4.9 MARKETING COST, MARKET MARGIN AND PRICE SPREAD FOR GRAPE CRUSH: - 90 4.9.1 Marketing Cost for Grape Crush: - 90 4.9.2 Market margin of Grape crush: - 91 4.9.3 Price spread of Grape crush: - 92 4.9.4 Marketing cost, Market margin and Price spread for Mint candy: - 92
  • 13. 4 4.9.5 Marketing Cost for Mint candy:- 92 4.9.6 Market margin of Mint candy: - 93 4.9.7 Price spread of Mint candy: - 94 4.9.8 Marketing Efficiency of Mix fruit Jam and Tomato ketchup 94 MARKETING SURVEY 96 4.9.9 Retailer survey of Mapro foods private limited 96 4.9.10 Consumer survey Mapro foods private limited 100 4.9.11 Consumer Survey of Selected product: - 105 4.9.12 Schedule for Retail outlet 108 4.10 STP (SEGMENTATION TARGETING POSITIONING ) MODEL OF MFPL 111 4.10.1 Segmentation of MFPL: 111 4.10.2 Targeting of MFPL 112 4.10.3 Positioning of MFPL 113 4.11 PORTER’S FIVE FORCES ANALYSIS OF MAPRO FOOD PRIVATE LIMITED 114 4.12 VALUE CHAIN ANALYSIS OF MFPL 116 4.13 BCG MATRIX MODEL OF MFPL 118 4.14 SWOT ANALYSIS: 119 4.14.1 Strengths: 120 4.14.2 Weaknesses: 120 4.14.3 Opportunities: 120 4.14.4 Threats : 121 4.15 PROBLEMS AND SUGGESTIONS: 121 4.16 .FINDINGS: 122 4.17 CONCLUSION 123 4.18 EXPERIENCE GAINED 124 RFERANCES XIV PHOTO GALLERY XV VITA XVII
  • 14. 5 Figure Number figure No 1. 1: classification of agro industry 8 figure No 1. 2 Agro Climatic zones of Maharashtra 18 Figure No. 3. 1 Map view of Country and state 24 Figure No. 4. 1 Mapro Foods Pvt. Ltd. 35 Figure No. 4. 2 Location of Mapro Foods Pvt. Ltd. on Map 37 Figure No. 4. 3 Satellite view of Mapro Foods Pvt. Ltd 37 Figure No. 4. 4 Points considered in site selection of MFPL 38 Figure No. 4. 5 Layout of Mapro Foods Private Limited 39 Figure No. 4. 6 : Products of MFPL 40 Figure No. 4. 7 Product mix 41 Figure No. 4. 8 Organization Structure of MFPL 41 Figure No. 4. 9: Sugar syrup machinery 45 Figure No. 4. 10 Mixing tank 46 Figure No. 4. 11 Internal bottle washer 46 Figure No. 4. 12 Capping machine 47 Figure No. 4. 13 Wetness 47 Figure No. 4. 14 Printer 48 Figure No. 4. 15 Sources of recruitment 53 Figure No. 4. 16 Processing flow chart for Making Grape crush 58 Figure No. 4. 17 Mixing tank 59 Figure No. 4. 18 Hot sugar syrup and pectin mixture 59 Figure No. 4. 19 Hand refractometer 60 Figure No. 4. 20 Flavours and fragrances 60 Figure No. 4. 21 Filling machine 61 Figure No. 4. 22 Sleevs applicator machine 61 Figure No. 4. 23 Storage of final product 62 Figure No. 4. 24 Mint candy 63 Figure No. 4. 25 : Cceptance of raw materia 68 Figure No. 4. 26 Segmentation of Mapro foods private limited 111 Figure No. 4. 27 Targeting of Mapro Foods Private Limited 112 Figure No. 4. 28 Brand positioning of Mapro Foods Private Limited 113 Figure No. 4. 29 Porter’s five forces analysis of MFPL 114 Figure No. 4. 30 Value chain analysis 116 Figure No. 4. 31 BCG matrix analysis of MFPL 118 Figure No. 4. 32 SWOT Analysis 119 Graph Number Graph No. 1. 1 India’s grape production. 15 Graph No. 1. 2 Export of processed food and related product 16 Graph No. 1. 3 food processing industry contribute to indias GDP 17 Graph No. 1. 4 Shares of Different States in Organised food processing units. 19 Graph No. 4. 1: MFPL’s production line working days 55
  • 15. 6 Graph No. 4. 2. Production data of Mapro’s in 2017-18 76 Graph No. 4. 3 Alternative Grape crush Graph No. 4. 4 Alternative Mint candy 98 Graph No. 4. 5 Improvement Grape crush Graph No. 4. 6 Improvement Mint candy 99 Graph No. 4. 7 Reason Grape crush Graph No. 4. 8 Reason Mint 101 Graph No. 4. 9 Alternative Grape 101 Graph No. 4. 10 Rating of Grape crush Graph No. 4. 11 Rating of Mint 102 Graph No. 4. 12 Improvement Grape Graph No. 4. 13 Improvement Mint 103 Graph No. 4. 14 Feature Grape crush Graph No. 4. 15 Feature Mint candy 104 Table Number Table No. 1. 1 India’s Sectors Wise Processing Level 11 Table No. 1. 2: - Global Grape Production 12 Table No. 1. 3 Export of Grape (2015-2017) 13 Table No. 1. 4 Indian Grape Production (2015-17) 14 Table No. 1. 5 Year-wise export of processed food products 15 Table No.3. 1 Survey of agro processing industries in Satara district. 25 Table No.3. 2 Major Competitors of MFPL and its product price 26 Table No. 4. 1 : Company profile 32 Table No. 4. 2 Resource use management of Mapro Fruit Products 43 Table No. 4. 3 Name of places from where raw material procure 44 Table No. 4. 4 List of machinery and equipment used by Mapro 47 Table No. 4. 5 List and number of employees worked at Mapro 49 Table No. 4. 6: Nutritional facts for Grape Crush 57 Table No. 4. 7. Availability of Ingredients in Grape Crush 57 Table No. 4. 8. Nutritional facts for Mint candy 63 Table No. 4. 9 Availability of Ingredients in Mint candy : 63 Table No. 4. 10 Quality specification for selected products 69 Table No. 4. 11 Table No 4.8 Quality specification of Pectin. 69 Table No. 4. 12 Quality specification of Sugar 69 Table No. 4. 13 Quality specification for Tartrazine edible color. 70 Table No. 4. 14 Quality specification of Citric acid 70 Table No. 4. 15 Quality specification for final product 71 Table No. 4. 16 Production data of Mapro Fruit products whole unit in 2017-18 75 Table No. 4. 17 Capital Investment for Grape Crush 77 Table No. 4. 18. Construction of Building: - 78 Table No. 4. 19. Machinaries and equipment’s in SCS department 79 Table No. 4. 20 The raw material required for Grape crush 79 Table No. 4. 21. Variable Cost for Grape crush: 80 Table No. 4. 22 Per unit cost of Processing for Grape crush: - 81 Table No. 4. 23 Capital Investment for Mint candy 84 Table No. 4. 24 Construction of Building 85 Table No. 4. 25 The raw material required for Mint candy: 86 Table No. 4. 26. Variable Cost for Mint candy: 86
  • 16. 7 Table No. 4. 27. Per unit cost of Processing for Mint candy 87 Table No. 4. 28 Marketing Cost Grape Crush 90 Table No. 4. 29 Market margin of Grape crush 91 Table No. 4. 30 Price spread of Grape crush 92 Table No. 4. 31 Marketing Cost Mint candy 92 Table No. 4. 32 Market margin of Mint candy 93 Table No. 4. 33 Price spread of Mint candy 94 Table No. 4. 34 Marketing efficiency 95 Table No. 4. 35. Retailer Survey 96 Table No. 4. 36 Popular flavour of customer 96 Table No. 4. 37 Customer demand more for products 96 Table No. 4. 38 Alternative use of brand 97 Table No. 4. 39 Improvement suggested 98 Table No. 4. 40 Consumer Survey 100 Table No. 4. 41 Reason for Prefernces of product 100 Table No. 4. 42 Alternative flavour purchase 101 Table No. 4. 43 Overall rating of product 102 Table No. 4. 44 Improvement from customer point of view 103 Table No. 4. 45 Product feature ranking 103 Table No. 4. 46 Targeted Group of MFPL 112 Table No. 4. 47 Relative market share and market growth rate 118
  • 17. 8 1. INTRODUCTION 1.1 Concept and Meaning of Agro-based Industry 1.1.1 Agro-Industry Agro-industry deals with the supply, processing, and distribution of farm products and inputs required for the agriculture sector. It is related to the small scale and large-scale production, processing and packaging of food using modern equipment and methods. figure No 1. 1: classification of agro industry The agro industry is classified into four major segments viz .Agro-base industry, Agro- allied industry,Agro- related industry and Agro-service industry. The Agro-based industries include fruits and vegetable processing, gain milling, etc. Segments. The Agro-allied industries include Bee- keeping, Poultry, Dairy, etc. Units, Agro-related industry is consisting of the sugar industry, textile industry, leather industry etc. Agro service industry offers assistance for the industry discussed above . these industry include service centre and workshop which are engaged in repairing and servicing of pump sets , diesel engines, tractors and all types of farm equipment. 1.1.2 Meaning Of agro-based industry : “ Agro- based industry ” is an omnibus expression. It could cover a variety of industrial, manufacturing and processing activities based on agricultural raw materials as also activities and services that go as inputs to agriculture, Agro-based industry is a industry dealing with the supply ,processing and distribution of farm product . It is related to the large – scale production, processing and packaging of food using modern equipment’s and methods. 1.1.3 Def of Agro-based industry : “Agro- based industry are those industries which have either direct or indirect links with agriculture ”------(S. N. Bhattacharya, Rural Industrialization in India BR Publishing Corporation, Delhi, 1980 ) AGRO-INDUSTRY Agro- Based industries Agro- Allied industries Agro -Related industries Agro Service industries
  • 18. 9 1.2 Global Scenario of Agro-Based Industry: In number of countries food processing industry is a major contributor to the health of national economy . In the same way this sector is impacted by the global economy in terms of food logistics, imports and exports. The global food and agriculture industry is estimated to be US $7.6 trillion, according to Plunkett research or about 10 percent of global GDP. Global food exports totalled US $ 18.5 trillion in 2016, according to WTO. In the US food accounts for approximately 13 percent of a typical households spending, ranking 3rd behind housing and transportation, as per the U.S. Bureau of labour statistics. Asia specific region with 32 percent of total food and beverage retail sales stood as a reigning leader. EU, the US and Japan accounted for more than 60 percent of total global processed food retail sales. Although China is growing substantially, Japan is currently largest food processing market in Asia. Revenue in food and beverages segment amount to US $ 51,927 M in 2019, revenue is expected to show an annual growth rate (CAGR 2019-2023) of 10.1 percent resulting in a market volume of US $ 76,300 M By 2023. User penetration is 27.8 percent in 2019 and is expected to hit 36.2 percent by 2023. The average revenue per user currently amounts to US $ 42.97. In global comparison, most revenue is generated in china (US$ 21,945 M in 2019) In Asia food rank first estimated at 23 percent of consumers spending followed by education and housing. This shows demand for food processing industry. Global food processing alone will account for US $ 2.6 trillion by 2020. 65 percent of the world’s middle class will be living in the Asia Pacific region by 2030. The increasing disposal income in emerging economics will drive demand for manufactured food products. India food industry contributes 1.7 percent of global processed food industry. Apart from Asia, Australia has one of the most technically advanced food processing industries in the world. Indian is one of the world’s largest producer of fresh fruit and vegetables. However, fruit and vegetable processing is relatively undeveloped in country. The processed food segment is 65 percent of fruit and vegetable processing sector, by market share. The processed fruit and vegetable sector includes frozen, canned, dried fruit and vegetables and other with significant percentage of imports, at an average of 35percent, revenue to processors and producers from the processed food products sector are strongly influenced by international trade.
  • 19. 10 North America dominated the fruit and vegetable processing market in 2015. There is a high consumption of frozen fruits and vegetables in the US and Canada. However, due to the increasing health awareness, consumers are expected to shift toward fresh produce in the long run. Demand for processed fruits and a vegetable has grown strongly in the developing countries of Asia Pacific over the past five years. The emerging markets (India, Indonesia, China and Malaysia) will increasingly drive global growth the share of export and import for food and drink products in these markets is growing rapidly. Manufacturing and processing will increasingly shift to these markets, to be close to a growing customer base. Indian scenario of Agro-based industry India is the second largest producer of fruits and vegetables in the world with a production of 305.4 MT during 2017-18, India is largest producer of ginger and okra amongst vegetables and rank second in production of potatoes, onion, cauliflower, brinjal, cabbage etc. Amongst fruits, the country ranks first in production of bananas (25.7%), Papayas (43.6%) and mangoes (including mangos teens and guavas) (40.4%) The vast production base offers India tremendous opportunities for export. during 2018-19 ,India exported fruits and vegetables worth Rs . 102236.93 core/ 1469.33 USD Million which comprised of fruits worth Rs. 4817.35 cores/ 692.01 USD Million and vegetables worth Rs. 5419.48 Crores /777.25 USD millions. The major destinations for Indian fruits and vegetables are Bangladesh, UAE, Netherland, Nepal, Malaysia, UK, Sri lanka, Oman and Qatar Through India’s share in global market is still nearly 1 percent only there is increasing acceptance of horticulture produce from the country . This has occurred due to concurrent developments n the areas of state-of-the-art cold chain infrastructure and quality assurance measure. apart from large investment pumped in by private sector, public sector has also taken initiatives and with APEDA’S assistance several centres for perishables cargoes and integrated post-harvest handling facility has taken set up in the country .capacity building initiatives at the farmers, processors and exporter’s levels has also contributed towards this effort India is the world’s largest producers of banana, papaya, mangoes and guavas the second largest producer of potatoes, green peas, tomatoes, cabbage and cauliflower.
  • 20. 11 1.2.1 India’s Sectors Wise Processing Level Table No. 1. 1 India’s Sectors Wise Processing Level The fruits and vegetables processing level is only 2 percent which is very less as compared to other sectors and the availability of fruits and vegetables in India. 1.3 Global scenario of Grapes This is a list of countries by grape production in 2016-17, based on data from the Food and Agriculture Organization Corporate Statistical Database. The total world production for grapes in 2017 was 74,276,583 MT, down 1.0 percent from 74,992,047 tonnes in 2016. China was the largest producer of grapes, accounting for 16.8 percent of global production. Italy came second at 10.9 percent, followed by the United States at 9.6 percent. As per the given in below table no. 1.2 The country China has no.1 in production of Grapes about 13,083,000 MT of grape production taken in the year 2017 but in 2016 its been quite less its 12,629,000 MT. The second-largest producing country after China in Italy, Italy has 8,201,914 MT. production in the year 2016, in the year 2017 it is 7,169,745 MT. and in the third number, the US has a 6,247,034 MT. production in the year 2016 and in 2017 it is 6,679,211 MT. In fourth no. comes France, France has produced in the year 2016 is 6,247,034 MT. and in the year 2017, its 59,15,882 MT production done. As like that Spain and Turkey in the year 2017 has a 5,387,379 and 5,950,719 MT production India has the 7th number in production of Grape in the year 2017 India gets about 2,922,000 MT and in the year 2016, it's 25,90,000 MT. production Sr. No. Food Processing Sector Level of Processing in India (%) 1. Marine Products 23 2. Meat 21 3. Milk 40 4. Poultry 6 5. Fruits and Vegetables 2
  • 21. 12 1.3.1 Global Grape Production Production 000 MT (2015-2017) Table No. 1. 2: - Global Grape Production Sr. No. Country 2015-16 2016-17 2017-18 2016 to 2018 Production Share (%) Production Share (%) Production Share (%) Average Production 1 China 13164 24.50% 12629 23.39% 13083 25.33% 30154 2 Italy 7915.01 14.73% 8201.91 15.19% 7169.74 13.88% 18507 3 USA 6964.59 12.96% 7225.64 13.38% 6679.21 12.93% 16417 4 France 6258.36 11.65% 6247.03 11.57% 5915.88 11.45% 14477 5 Spain 5799.13 10.80% 5950.72 11.02% 5387.38 10.43% 13546 6 Turkey 3650 6.79% 4000 7.41% 4200 8.13% 9050 7 Chile 2700 5.03% 2200 4.07% 2000 3.87% 5567 8 India 2602 4.84% 2590 4.80% 2922 5.66% 6166 9 Argentina 2415.57 4.50% 2675 4.95% 1965.21 3.81% 5746 10 Iran 2251.55 4.19% 2275.83 4.21% 2325 4.50% 5302 Total 53720.21 100.00% 53995.13 100.00% 51647.42 100.00% 124931 As shown in below table No.1.2 the average production of the year 2015 to 2017 is the top one country is China its average production of the last three years is 30,154MT as similar to Italy is 18,507MT and the USA has a 16417MT. India rank 8th with are production 6466MT
  • 22. 13 1.3.2 Export of Grape: - Qty in MT Value in Rs. Lacs As shown in above table No. 1.3 The highest exporter country in the world is Netherland they export average quantity about 1,24,887MT and its value is 141397 Lacs in year 2015, 2016 and 2017. The second highest exporter country is UK they export average quantity is 37376 MT and its value is about 43596 lacs Sr. No. Country 2015-16 2016-17 2017-18 Average Quantity Value Quantity Value Quantity Value Quantity Value 1 Netherland 50390.44 58588.51 55010.43 61224.15 58456.97 64753.35 124887 141397 2 Russia 12445.66 12705.38 22340.94 23466.83 27434.39 27734.44 43931 45417 3 United Kingdom 17598.08 20654.35 13580.14 15544.22 18594.24 22193.56 37376 43596 4 Germany 4222.37 4994.07 10467.38 11913.54 16449.51 18091.76 20173 22938 5 United Arab Emirates 11692.6 9794.17 14597 11694.64 13574.9 10971.59 30815 25146 6 Saudi Arabia 5486.93 4681.37 7308.91 6306.15 9482.96 7116.9 15957 13360 7 Thailand 3146.12 4011.81 4509.7 5922.65 5043.03 6554.06 9337 12119 8 Finland 1574.5 2013.04 2079.88 2532.52 2131.87 2854.18 4365 5497 9 Hong Kong 1056.33 1424.45 2094.5 3060.31 1969.32 2832.7 3807 5429 10 Belgium 41.6 43.25 4651.57 4900.95 2331.45 2534.07 5470 5789 11 Sri Lanka 1732.15 2284.91 1776.37 2313.58 2196.06 2441.11 4241 5412 12 Others 23260.82 15030.27 60054.49 29291.84 30556.46 21917.14 93501 51628 Total 132647.6 136225.58 198471.31 178171.38 188221.16 189994.86 393859 377729 Table No. 1. 3 Export of Grape (2015-2017)
  • 23. 14 1.3.3 Indian Grape Production: - Table No. 1. 4 Indian Grape Production (2015-17) Sr no. States 2015-16 2016-17 2017-18 Average (MT) Area Production Area Production Area Production Area Production 1. Andra Pradesh 0.73 14.694 0.77 15.36 0.8 15.92 2 35 2. Haryana 0.04 0.16 0.04 0.04 0.04 0.09 0 0 3. Himachal Pradesh 0.09 0.13 0.09 0.1 0.08 0.13 0 0 4. Jammu & Kashmir 0.13 0.32 0.32 0.65 0.33 0.89 1 1 5. Karnataka 23.35 429.78 24.29 450.79 26.61 524.2 57 1055 6. Kerala 10 15.5 1.2 16 0.01 0.18 11 32 7. Madhya Pradesh 0.16 2.2 0.09 1.28 0.09 1.28 0 4 8. Maharashtra 90.09 2048.11 104.1 2378.2 105.5 2286.4 229 5188 9. Mizoram 2.47 22.55 2.45 18 2.45 18 6 47 10. Nagaland 0.26 0.5 0.26 0.6 0.22 0.54 1 1 11. Punjab 0.3 8.49 0.29 8.22 0.29 8.23 1 19 12. Rajasthan 0.01 0.02 0 0.01 0 0 0 0 13. Tamil Nadu 2.44 34.1 2.49 29.02 2.16 58.93 6 83 14. Telangana 0.59 13.54 0.29 3.47 0.35 5.27 1 19 Total 120.7 2590.09 136.7 2921.7 138.9 2920.1 304 6485
  • 24. 15 Graph No. 1. 1 India’s grape production. As shown in above table no. 1.4 The highest producer of grape in india is Maharashtra state is about 30.09 Ha area comes under cultivation of grape and its production is 2048.11 MT. second largest producer state is Karnataka its average Area under cultivation is 57 Ha. And its production ia about 1055 MT. And Maharashtra states has a average area under production 229 Ha. And its area is 5188 MT. 1.4 Export of processed food and related product: Total exports of processed food products of India for the last 6 years are given in Table and Chart, it will help to calculate Average Annual Growth Rate (AAGR) Table No. 1. 5 Year-wise export of processed food products * Average Annual Growth Rate for 5 years ending 2016-17 The value of export of processed food during 2019-17 was of the order of US$ 30.87 billion which is 11.19 percent of indias total export (total exports US$ 276 Billion) As per trade map data, during 2016 Indias share in world exports of processed food products was about 2.22 percent. average grape production in india Andra Pradesh Haryana Himachal Pradesh Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra Mizoram Nagaland Punjab Rajasthan Tamil Nadu Telangana Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 AAGR FPI – Exports 31459.58 35898.06 38051.43 36171.92 29672.32 30871.47 0.25% Percent Growth 14.11% 6 % -4.94% -17.97% 4.04%
  • 25. 16 Graph No. 1. 2 Export of processed food and related product Contribution of Food Processing to Indian GDP: Agro processing industry is one of the largest industries in India and rank 5th in terms of production consumption and export as per the latest data available, in Indian economy as it contribute 9 percent and 11 percent of GDP in manufacturing and agricultural industry respectively. Gross value added of food processing industry in India has been recorded as US $17.50 billion in 2016-17. No. Of registered food processing unit has increase from 38608 in 2014-15 to 39748 in 2016-17. Investment in fix capital is registered food processing sector has grown from US $ 29.50 billion in 2015-16 to US $ 32.30 billion in 2016-17 witnessing growth rate of 9.50 percent. The food processing industry in India stand as one of the major employment intensive industry, constituting 12.77 percent of employment generated in all manufacturing factories registered under factory act 1948. Additionally, the sector constitutes 13.72 percent of employment in unregistered manufacturing sector. The food processing industry in India contributed approximately US $ 3.92 bn to India’s exports in the year 2017-18
  • 26. 17 Graph No. 1. 3 food processing industry contribute to indias GDP 1.4.1 Tax incentive and Policy Support for India’s Agribusiness 100 percent automated FDI permitted through automatic root in the food processing sector. There are concessional rate of custom duty applicable on imported equipment under the project import benefits. Income tax deduction on capital expenditure allow at the rate of 150 percent for setting up and operating cold chain or warehouse. Loan to food and agro-based processing units and cold chain covered under priority sector leading (PSL)by banks The reduction that has been distinctive for the previous corporations is as follows: 100 percent of income and profits derived: First 5 years (starting in the year wherein the challenge commences task the eligible enterprise) 100 percent of income and profits derived: First 5 years (beginning in the 12 months in which the venture commences undertaking the eligible enterprise 25 percent of profits and gains derived: Next five years 1.4.2 Goods and Service Tax (GST) GST, an indirect tax delivered in India on 1 July 2017, is applicable throughout us of a. It has subsumed inside itself the multiple cascading taxes levied via the Central and State Governments. Under GST, items and services are taxed on the fees of 0 percent, 5 percent, 12 percent, 18 percent, and 28 percent. Ministry of Food Processing and Industries (MOFPI) has undertaken several projects for the improvement of the Food Processing quarter, together with streamlining rates for products underneath the GST regime
  • 27. 18 1.5 Maharashtra Scenario of Agro-based Industry : Maharashtra is bio-diverse state with 9 agro climatic zones and varying soil type suitable for agriculture. figure No 1. 2 Agro Climatic zones of Maharashtra 1. South Kokan Coastal Zone 2. NorthKokan Coastal Zones 3. WesternGhat Zone 4. Transition Zone 1 5. Transition Zone 2 6. Scarcity Zone 7. Assured Rainfall Zone 8. Moderate Rainfall Zone 9. Eastern Vidarbha Zone Maharashtra is one of the major horticultural state in India with more than 295.2 MT production of fruits and 175 MT vegetables. Maharashtra has highest value addition to the food products in the country. It accounts 16.18 of value addition of agriculture produce of Maharashtra. The special economic zones in India are 779 and Maharashtra having highest number of special economic zones in country .
  • 28. 19 The share of food processing industry in total share of industrial sector is 12 percent. 90 percent of total wine industries located in Maharashtra. Nearly 80 percent of demand for wine centres in following major cities of country - New Delhi , Mumbai , Chennai , Kolkata, Pune and Bangalore. India rank 77 in terms of wine consumption in world .The country accounts 0.8 percent of total wine consume in Asia as compared to China which accounts more than 62.7 percent market share. Under its Mega Food Park Schemes , Ministry of Food Processing Industry ( MOFPI ) has sanctioned four Mega Food Parks Projects – a. Jain Agro Trading Company Private Limited, Wardha ( In –principle approval b. Vinay TiwariAgro Estates and Farms Pvt. Ltd. Ahmednagar. c. Paithan Mega Food Park Ltd. Aurangabad. d. Satara Mega Food Park Pvt. Ltd. Satara. 1.5.1 Agro-based Units in India and Maharashtra’s Shares : Graph No. 1. 4 Shares of Different States in Organised food processing units.
  • 29. 20 As shown in Graph no.1.4 the share of different state in organised food processing units among which the share of Maharashtra is highest (14 percent) , followed by the Andhra Pradesh(13 percent )and Gujarat (13) 1.6 Importance of Agro-based Industry: Agro processing is one of the largest global sector at $ 60 trillion annual production. Currently only 2.2 percent of India’s vegetables and fruit production is processed. In comparison USA and China processes their 90 percent and 40 percent produce. Other developing countries, such as Philippines, Brazil and Thailand are processing as a high as 78,70 and 30 percent of their produce simultaneously. Important of the sector is significant and it’s deserves a priority treatment by government. Accordingly sector has been made part of ambitious ‘Make in India’ initiative. Growing population, rapid organization, changing consumer preferences etc. are expected to keep the demand to increasing to. With a well- integrated supply chain and a good marketing strategy, a tremendous opportunity lies for processed food industry. Government of India has taken lot of initiatives and policy decision for commercializing agriculture with specific importance on high take horticulture and developing the fruit processing, preservation and packaging sectors to its full capacity. The fruit processing sector is rapidly being transformed to a high volume profit making industry. A distinct shift is seen among the consumers for process, prepared and packed fruits product not only in the so called developed country but also in the developing country like India. Large no of units are in the cottage/home scale and small scale sector, having small capacities up to 250 tonnes/annum, though big Indian and multi-national companies have capacities in the range of 30-50 tonnes/hours or so. The inherent strength of high raw material production and large domestics market base has be buttressed with operating processing units at optimum capacity level as per economics of scale which would enable achieving competitive edge over imported product more recently product like frozen pulp and vegetables, IQF dices frozen dried foods and vegetables, food juice concentrates and vegetables curries restorable pouches, canned mushroom and mushroom product have been taken up form manufacture by the industry
  • 30. 21 1.7 Objectives and Scope of study: 1.7.1 Objectives of study: 1) To study the management aspects of the Mapro Pvt. Ltd. 2) To estimate per unit cost of production and workout profitability of selected products of Mapro Foods Pvt. Ltd. 3) To workout marketing cost marketing cost and price spread of selected products. 4) To study customer behaviour and preferences for selected products. 1.7.2 Scope of Study: - The study in area of management of agro-based industries will help to know the concepts, ideas, and management practices to be followed in agro-based industries. It will help to be well versed with management aspects of agro-based industries. While studying the management processes the work helped me to know actual work performed in the industry, the advantages and limitation in processes and the ways to overcome these limitations and improve the overall effectiveness of the system which will helps to establish new firm. The students, researchers, professionals who are seeking information and conceptual reference in area of management of agro-based industries will help them in their studies by referring this project frame work. 1.7.3 Limitation of Study: - In this empirical study , there are some limitations. It was unable to study whole area of domestic market due to time limit. This result will not applicable to all zones of the country because the conditions are changing according to market demand, situation , time , environment and season. The study result may applicable to similar and identical situations. There are some limitations for getting most reliable information due to confidential policies of company for security purpose. 1.7.4 Presentation of Report: Presentation of Report is done in three main chapters, the first introductory chapter illustrate the concept and meaning and scenario of agro-based industry, the related marketing aspects and objectives, scope and limitations of study in the area management of agri business management. Chapter second deals with the methodological issues wherein sample design data collection techniques are narrated. The detailed discussion in concern with objectives is given in third chapter of this report. The management practices followed procurement, production and marketing of products along with the findings and suggestions of study are integral part of this study.
  • 31. 22 2 REVIEW OF LITERATURE 2.1 To study the management aspects of the Mapro Pvt. Ltd. Shri.CA. A. Raghavendra Rao (2017) :International Journal of case studies in business, IT and Education Applied , Vol, 2. The case study based on management research which belief that it is a most powerful way to study and learn new lessons required to identify , understand and solve the problem in the process of managing and leading the organization . The issues or problems identified in a given industry and the efforts made by organizations to handle such issues or solve such problem are learning opportunities for student and researcher in business management institution. The article guide us about analysis as a class of case study methodology in management research for developing research case studies . 2.2 To estimate per unit cost of production and workout profitability of selected products of Mapro Foods Pvt. Ltd. Mohammed Al-Malki & Wang Juan (2015) : Journal of International Business Research and Marketing Volume 1 , Issue 1, This study determined the effects of cost- volume profit analysis in the decision making of agro processing industries. The study combined both survey research and longitudinal research design. The results revealed that the sale value of a product and quantity of product manufacture has positive effects on profit made on product, and also there is a significant relationship between the cost of production and profit. This study also help to known break even point where firm is neither in profit nor loss, 2.3 To workout marketing cost marketing cost and price spread of selected products S.S. Acharya and N.L. Agarwal ,Forth edition (2004): Marketing Channels in Agriculture in India S.S. Acharya and N.L. Agarwal studied various Marketing Channels in Agriculture in India In this study they showed various marketing channels from producer to consumer. They also explained the role of various market functionaries. The also explained how the marketing management concept influence the output of total product. They also showed the prices of various commodities varies from channel to channel. They also explained how the price spread of marketing channel.
  • 32. 23 2.4 To study consumer behaviour and preferences for selected products. Subadra S. Murugesan K. M. & Ganapathi R. (2018) : consumer perception & Behavior & concluded that consumer behaviour consists of all human behaviour that goes in making purchase decision. An understanding of consumer behaviour enables a marketers to take marketing decision which are compatible with its consumer needs. These are four major classes of consumer behaviour determinants & expectations, namely, cultural, socioeconomically , person and psychological. There are certain attributes of the product which are identified as influencing the purchase decision & satisfying the customer. 2.5 To identify the problems faced in production , processing and marketing of selected products of Mapro Foods Pvt. Ltd. And suggestions to overcome the problems. R.K. Bharadwa, B. K. Singh, N. K. Singh (2017): Challenges and Constraints of Marketing and Export of Indian Spices From India and International conference on technology and Business Management R. K. Bharadwaj, B. K. Singh, N. K. Singh conducted a study on “Challenges and Constraints of Marketing and Export of Indian Spices From India” In this study they showed all the problems in food sector related to marketing and exporting zone i.e. the Low productivity, poor product quality, insufficient mechanization and Agril Extension is not market oriented. Various problem faced by production, processing and marketing of products, and also known about various suggestions to overcome the problem in processing , production.
  • 33. 24 3 RESEARCH METHODOLOGY Descriptive research and exploratory research was conducted to fulfill the objective of the study. In order to arrive at proper conclusions, it is necessary for investigator to adopt appropriate methods and procedures. The success of any projectdepends on the methodology which is adopted during data collection, compilation andvarious types of analysis on scientific lines. 3.1 Selection of study area 3.1.1 Selection of Country and state Figure No. 3. 1 Map view of Country and state India is one of the world’s largest producers of food. This shows a good availability of raw material in the country. But the processing level of the Agro Processing industries is less as compare to the production. The country also has good government support to establish Agro based industry and has export potential as well as efficient inputs availability like land, labours etc. which economically beneficial to select the area. In India Andhra Pradesh, Maharashtra, Tamil Nadu are the major food, milk And fruits producing and processing states. Maharashtra has great potential in processing sector. Maharashtra is fastest growing Agro industrial state after 1965. It has number of manufactures; those are supplying wide range of raw material like Jain Fresh Farms. Maharashtra introduces various schemes, develops the food parks, MOFPI schemes for effective running of Agro based industries. It also has good
  • 34. 25 infrastructure and raw material availability which is the backbone of Agro based industries. It has good market demand and locations which plays crucial role in exporting products. 3.1.2 Selection of district and locality Satara district hold numbers of ongoing industries. As per survey of micro, small and medium enterprises development institution more than 352.31hactares area is under at industrial sector in Satara. It has good APMC and rural infrastructure. It has a right location for availability of raw material suppliers like Koyana Agro, BVG (Bharat Vikas Group) food park etc. It has appropriate location that is linked with roadways and national highways. It has more than 181 numbers of enterprises in manufacturing food products and beverages 3.2 Survey of different agro industries in Satara district Table No.3. 1 Survey of agro processing industries in Satara district. To fulfill purpose of study, Satara district was identified to complete experiential learning programme, where four major agro processing industries are found which are related to fruits processing those are; Manama, Mapro, Mala’s and Madhusagar. Especially they are processing the fruits and introducing fruit products. Sr. No. Name Address Est. Year Owner 1. Manama 26/3 Bhose Village, Panchgani, Satara, Maharashtra, India. 1994 Mr. Mohsin Mala 2. Mapro 122, Shendurjane, Wai, Satara, Maharashtra, India. 1959 Mr. Mayur Vora 3. Mala’s Plot No. B-47, Wai MIDC, Satara, Maharashtra, India. 1958 Mr. TayabAli Mala 4. Madhusagar A/P. Mahabaleshwar, Satara. 1955 Mr. Sanjay Gaikwad (Chairman)
  • 35. 26 As per study it was found that Mapro’s having a good industrial profile. It is one of renowned name in the field of a food processing, leading exporter, manufacturer and supplier of finished products like jam, jelly, crushes etc. The company has grown widely in last 6 decades. Due to quality and brand awareness Mapro having goodwill in the market. 3.3 Major players to the Mapro:- Table No.3. 2 Major Competitors of MFPL and its product price Major competito r Competitor Product Prices of Competitors price Rs./kg Mapro’ s Product price Rs./kg Kissan Jam 220 198 Mala’s Crush 280 270 Top’s Chocolate 150 117 Manama Syrup 200 180 Parley Pulpero 280 261 . Above table no.3.2 shows that the major competitor of Mapro and its major product price ,from table its shows that prices of 1 kg Mapro product is low as compared to its competitors for remaining in a market it beat the competitor i.e. Mapro 1 kg mix fruit jam has selling price 198 which is low as compared to its tough competitor kissan . 3.3.1 Kissan:-
  • 36. 27 Introduced primarily for the British settlers in India since 1935 by Mitchel Hindustan Unilever took it Kissan is in the market leader in jam and ketchup. Today it is a power brand Kissan for Unilever. Kissan is not just about jams, ketchups and squashes, but they also play a vital role in the growth of raw material, and to help small farmers. 3.3.2 Manama- The Manama founded in 1994 by Mr. Mohsin Mala at Pannchganni with the prime motive of offering affordable, high quality products to consumers. The fresh, invigorating atmosphere of the Sahyadri Hills in Panchgani was an ideal location for such a venture. For the first time in India they introduced an exclusive range of cordials and dessert toppings. 3.3.3 Tops:- Tops are a food processing company existence in the year 1984 starts by Mr. B.M.Seth and Mr. Chand Seth. Company introduces jams, jelly, pickles, sauces etc. it’s has popularity in India and in as many as 25 countries around the world. 3.3.4 Mala’s :- As per study it was found that Mala’s having a good industrial profile. It is one of renowned name in the field of a food processing, leading exporter, manufacturer and supplier
  • 37. 28 of finished products like jam, jelly, crushes etc. Mala’s is also supplying jam to Indian defense services which shows the quality of products. 3.3.5 MADHUSAGAR Mahabaleshwar Madhothpadak Co-operative Society LTD (MADHUSAGAR). Madhusagar was established on 25 May 1955, was on the basis of co-operative structural theories with the guidance of Mr. Bapusaheb Shende. Madhusagar completed its golden jubilee and running due to overwhelming support of Maharashtra Rajya Khadi Gramodyog Mandal. It is manufacturing products in basic level. They produce very pure products to sale for customers, in that the Honey, Jam, Jelly, Syrups, Crushes etc. 3.4 Data requirement To study management aspects of jams at Mapro Fruit Products, Wai. The data collected with various aspects such as information is analyzed right from the procurement of raw material till the product reaches to consumer 3.4.1 Source of Data: 1) Primary Data: - a. Personal interview b. Market survey c. Questionnaire 2) Secondary Data: - a. Websites b. Reports published by Govt. 3.4.2 Primary Data: The primary data was collected with the help of personnel interview and discussion with managers, team and customers for the company to get some ideas about the project and related perceptions of the situation. The information was collected with designed open ended and close ended questionnaire also a schedule was used for collecting the data. 3.4.3 Secondary Data : Secondary data was also collected from books, reputed statistical websites, already existing sources that is companies records, files, magazines, company websites, internet, pamphlets etc
  • 38. 29 3.5 Data analysis techniques: The collected data was categories in systematic way according to the need of objectives by using tabular and graphical method. Also, the data was analyzed using following formulae:- Analytical tools:- 1) Total cost = Fixed cost + Variable cost 2) Product share = (Production of selected product /Total production of company) * 100 3) Per kg cost of production = Total cost of production / Total production 4) Junk Value = Original amount / 100 * 10 5) Depreciation = Original Cost of the Assets – Junk Value/Useful life of the Assets 6) Producer profit = Selling price – Cost incurred 7) Price Spread = Price paid by consumer - Price received by producer 8) Market Margin of wholesaler = Selling price- (Purchase price + Market cost) 9) Market Margin of Retailer = Selling price - (Purchase price + Market cost) 10) Producer Share in Consumer Rupee = Producer selling Price / Consumer purchase Price*100 11) NPW = Net Present Worth: NPW Where, Bt = Benefit in each year Ct = Cost in each year t= number of year i = interest rate 12) BCR = Benefit Cost Ratio: BCR
  • 39. 30 Where, BCR = Benefit cost ratio Bt =Benefit in each year Ct = Cost in each year t = 1, 2, ----n n = Number of years i = interest (discount) rate B:C > 1 then project is acceptable. B:C < 1 then project is rejected. Break Even Point:- In Quantity term: = Fixed Cost / (Selling price per kg – Variable cost per kg) Monetary term:- = Fixed Cost /(1- Variable cost per kg / Selling price per kg) 13) Margin of safety in quintal =Total Yield – BEP in quantity 14) % Margin of safety in quintal = (BEP in quantity / Total Yield) * 100 15) Margin of safety in value =Total Returns – BEP in monetary value 16) % Margin of safety in value = (BEP in monetary value / Total Return) * 100 17) Financial ratio analysis 1) Current ratio = Current assets / Current liability 2) Net capital ratio = Total assets / Total liability 3) Quick ratio = Quick assest / Current Liability 4) Cash ratio = Cash and deposits / Current liability SWOT analysis. B) Statistical tools- Pie chart, bar chart, tables 1) Estimation of production costs and returns of product The simple methods of tabular analysis based on means, averages and percentages were followed in estimation of costs and returns of individual product.The total cost of production of product comprises of fixed cost and variable costs. The depreciation, interest on fixed investments on Company, value of land etc. were considered as the items of fixed cost, whereas, the packaging material, power and fuel, electricity, labour charges, etc. were the items of variable costs. The production in during the year were multiplied by price obtained for a product , to arrive at annual gross returns. 2) Benefit Cost ratio: It is worked for Company by using following formula:
  • 40. 31 Benefit in each year BC ratio = ------------------------ Cost in each each year The total returns obtained from company and total cost incurred (Fixed + Variable cost) during the year was considered. 3) Break-even analysis (BEP) The break-even point is the interaction of the total revenue and the total cost. At this point, the vertical distance between the total revenue and cost is zero. There exists ‘no profit and no loss’ situation. However, as the vertical distance between them increases, the total profit increases with the increase in output. The BEP quantity is calculated as follows Break Even Point :- = Fixed Cost / (Selling price per kg – Variable cost per kg) 4) Sensitivity analysis Sensitivity analysis is done for the cost, yield, and price .With the help of given cost, yield and price structure, the ranges of cost, yield and price are estimated to analyses how much company can sustain the fluctuations in above factors. The following concepts of estimated cost, estimated yield and estimated price were employed to examine the sensitivity of the average company towards risk and uncertainty of increase in production cost, reduction in yield and lowering down the prices of cut flowers, under existing cost, yield and price structure. (Pawar et al. 2000). Estimated cost =Actual yield X Actual price Estimated yield =Actual cost /Actual price Estimated price =Actual cost /Actual yield 5) Marketing efficiency (ME) Marketing efficiency is the ratio of price paid by the consumer to the summation of marketing cost and net marketing margins. Higher the value of ratio, higher is the Marketing Efficiency. (Acharya. and Agarwal, 1999) Pc Mc + Mm Where, ME = Marketing efficiency Pc = Price paid by consumer per product Mc = Total Marketing cost per product Nm = Net marketing margin ME =
  • 41. 32 4 RESULTS AND DISCUSSION 4.1 General Information of Company 4.1.1 General Company Profile . Mapro Foods Private Limited is a Fast Moving Consumer Goods company engaged in manufacturing syrups, jams, ketchup, candy confectionaries and other related products. The general information of company is given in the table below. Table No. 4. 1 : Company profile Sr. No. Particulars Details 1 Name of company Mapro Foods Pvt. Ltd. 2 Type of company FMCG 3 Brand Name “MAPRO” 4 Year of Establishment of Industry 1959 5 Address 122 Shendurjane, Taluka-Wai, and District- Satara-412803 6 Founder visionary Mr. Kishore vora 7 Name of Owner Mr. Mayur vora 8 Type of Ownership Private 9 Items Processed in the Industry Jam, Jellies, Syrups, Ketchup, Choco powder. Crushes, Squashes, Chocolates, Toppings, 10 Website www.mapro.com 11 Tel. No. +91. 2167. 222111(INDIA) 12 Email mapro@vsnl.com 13 Fax +91.2167.222031 22000:2005 14 Certification & Credentials Certification BRC (British Retail Consortium), HACCP, HALAL Certificate. 15 FSSAI license no. 10012022000206
  • 42. 33 4.1.2 Product Portfolio Jams:- 1. Mango jam. 2. Pineapple jam. 3. Mixed Fruit jam 4. Strawberry jam. 5. Whole strawberry jam. Falero :- 6. Kachhikairi. 7. Pineapple. 8. Guava. 9. Litchi. 10. Strawberry. 11. Imli Crush 12. Mango crush. 13. Orange crush. 14. Mulberry crush. 15. Raspberry crush. 16. Pineapple crush. 17. Kiwi crush. 18. Butterscotch crush. 19. Guava crushes. 20. Pineapple whole crush. 21. Strawberry whole crush Squash. 22. Orange squash. 23. Mango squash. 24. Litchi squash. 25. Lemon squash.
  • 43. 34 26. Ginger squash Syrup. 27. Rose syrup. 28. Vanilla syrup. 29. Kesar syrup. 30. Khus Syrup. 6. Mock tails:- 1. Green apple Moctail. 2. Blue Curacao Mock tail. 3. Berry Mock tail 7. Chocolates 1.Mazana chocolate almond 2.Mazana chocolate cashew 3.Mazana chocolate paan 8. ketchup 1 .Tomato ketchup
  • 44. 35 Figure No. 4. 1 Mapro Foods Pvt. Ltd.
  • 45. 36 4.2 History of Organization Mapro food Pvt. Ltd. (MFPL) Founded in 1959, the Company had its humble beginnings in the hill-town of Panchgani, near Mahabaleswar, when a businessman named Kishore Vora a pharmacist by profession, decided to make some strawberry jam. He then went on to develop innovative products such as jelly sweets, fruit cubes with fruit juice and rose syrups with rose petals – all for the first time in country. Today, his ‘hobby’ has borne fruit in the shape of Mapro, one of the most modern, hygienic, quality-focused fruit product manufacturing units in India. His vision has been taken forward, thereby transforming the region around Mahabaleshwar and Panchgani, the erstwhile sleepy hill stations of Maharashtra, into a flourishing fruit processing zone. In 1983, Kishore Vora was joined by his nephew Mayur Vora, an IIM Bangalore alumnus who had two years' experience at Voltas. However, the company could not expand much beyond Maharashtra and Gujarat, and had to be content with modest growth for years.The rise of modern retail gave Mapro a nationwide network and access to customers with deep pockets. Vora invested the extra money back into the business and set up three new units in Satara and Pune districts in Maharashtra and Pathankot in Punjab. Today, installed capacity is some 100 tonnes a day. As growth in the jams and squashes business started slowing in 2005, Mapro entered the confectionery and chocolate business. The squashes market, pegged at Rs 70 crore, is growing at 10 percent. By contrast, the Rs 5,000-crore chocolate market has been doubling every three years. In May 2008, Mayur Vora came up with pulpy fruit chews, branded Falero. Today they contribute almost 50 percent of revenues.Ashok Vithlani of Polad Trading has handled the distribution of Mapro products in Gujarat for 15 years. He covers 25,000 retail shops in 110 towns. Mapro revenues have risen from Rs 25 crore in 2006/07 to more than Rs 100 crore in 2010/11, a compounded annual growth rate of some 32 percent Mapro’s portfolio of products provides a high quotient of natural fruit in the form of Jams, Fruit bars and chews, Syrups, Crushes, Squashes, and Dessert Toppings. Its range of premium products such as Thandai crush and Kesar syrup are made from the finest selection of exotic ingredients.
  • 46. 37 4.2.1 Location of Mapro Foods Private Limited Figure No. 4. 2 Location of Mapro Foods Pvt. Ltd. on Map Figure No. 4. 3 Satellite view of Mapro Foods Pvt. Ltd
  • 47. 38 4.2.2 Points Considered in Site Selection of Mapro Foods Private Limited Site selection plays crucial role in running industry as it makes impact on economies of company. The factors considered while selecting site of MFPL are discussed below. Figure No. 4. 4 Points considered in site selection of MFPL 1. Raw Material As Mapro processes agricultural produce most it requires good quality raw material from the area nearer to it. The location is selected with a view that industry can procure raw material i.e. agricultural produce as well as material required for production. 2. Availability of Laborer It is one of the important point considered while selecting site of Mapro. Owner of Mapro selected location nearer to the villages which helps to get labourer at cheap rates throughout the year. 3. Availability of Water and Electricity The availability of water and electricity is one of the decisive factor considered foremost in site selection of Mapro Foods Pvt. Ltd. The site is selected as there is abundant supply of water for industrial activity. The electricity is easily available from the MSEB Wai. 4. Transportation and Communication The location of industry is selected in such a way that it helps in transportation of products from the manufacturing unit to the retail outlet. Mapro Foods Private Limited is located on the way from Surur to Mahabaleshwar which makes it easy transportation and communication. Site selection Raw Materail Availabilit y Of labour Availabilit y of Water & Electricity Transporta tion & Communi cation Market Access
  • 48. 39 5. Market Access Mahabaleshwar, Panchagani and Wai are the tourist places since British era, the visionary founder seen scope for the products and started industry. The retail outlets are located at such tourist places. The location of manufacturing unit at Shendurjane, on the way of Surur to Mahabaleshwar State highway makes it easy to supply required products at retail outlets easily. 4.2.3 Layout of Mapro Foods Private Limited Once the site of the plant has been decided, the next important task before management is to plan suitable layout for the plant. The layout of manufacturing plant of Mapro foods Pvt. Ltd. is designed with the view to achieve coordination and efficiency of machines, materials, and methods in the plant Figure No. 4. 5 Layout of Mapro Foods Private Limited 1. Sales Counter 13. SCS Line 2. Security Gate 14. Mazana Line 3. Administration office 15. Jam Line 4. Fruit Bar Division 16. Washing Area 5. Warehouse 17. Warehouse 6. Boiler 18. Packaging Material 7. Maintenance Department 19. Return Good Section 8. Sugar Syrup Line 20. Water Treatment Plant 9. Pulping Line 21. Sales Counter
  • 49. 40 10.Quality Control Lab 22. Garden 11.Pet Blowing 23. Parking 12.Cold Storage 24. Toilets, Washroom 4.3 Product Mix of Mapro Foods Private Limited Figure No. 4. 6 : Products of MFPL Mapro has wide range of products in Squashes, Crushes and Syrups (SCS) category consists of 39 lip smacking products. Lounge is new product of Mapro since last two years (2015) innovated by R and D wing of MFPL, which is mostly appreciated by customers of Mapro due to its applications and taste. The products other than Lounge have great demand though market share for syrups, squashes and crushes of Mapro is captured by Lounge, the product like jam which has to maintain its consistent quality of product. Mazana is also Mapro innovative product since 2010 which has contributes major share in profit of MFPL. Product Line
  • 50. 41 Figure No. 4. 7 Product mix 4.3.1 Organization Structure of MFPL The organizational structure of industry determines the mode in which it operates and performs. Mapro foods Pvt. Ltd has bureaucratic type of organizational structure, having levels of management ranging from senior executives to the subordinates Mr. Mayur Vora, present Managing director of MFPL manages all the department. There is Finance manager assisted by Finance Admin. and accountants who looks for all the financial transactions of industry .The factory manager heads all the production departments, Storage department, Quality control lab, Maintenance department. Every department is headed by line incharge and line incharge is assisted by line supervisor. Human resource department is headed Human Resource Manager who looks in all activities of recruitment, training, job specification, descriptions of the employees with the help of four HR assistant The marketing department of MFPL is consists of Marketing Manager assisted by Asst. marketing manager, there are RSM at regional level and sales officers at zonal level, the distributive sales managers and sales representatives represents Mapro at tehsil and salesmen works at the retail outlets of Mapro who employs on monthly salaries from Mapro Foods Private Limited. Figure No. 4. 8 Organization Structure of MFPL
  • 51. 42 4.3.2 Documents required for establishment of industry 1. Maharashtra Pollution Control Board License All types of industries, operation or process or an extension and addition there to, which is likely to discharge sewage or trade effluent into the environment or likely to emit any air pollution into the atmosphere will have to obtain consent of the State Pollution Control Board under the provisions of Water (Prevention and Control of Pollution) Act, 1975 and Air (P and CP) Act, 1981.As Mapro Foods Private Limited discharges the effluent or sewage into open environment, it is mandatory by law to obtain MPCB license. In the license obtained by Mapro there are consents to establish, renewal, and to operate such industries at threshold level, which causes harm to the environment. There are following three types of consents i)Consent to Establish All the industries and activities needing consent must obtain consent to establish before actual commencement of the work for establishing the industry activity. ii) Consent to Operate This consent needs to be taken before actual commencement of production including trial production. This consent is valid for certain duration. iii)Renewal of Consent to Operate The Consent to Operate is renewed after certain period 2. Boiler License As it is required to keep check on boiler processes Mapro obtained boiler license. The malfunctioning of boiler can result into industrial disaster as boiler uses hydraulic pressure So, MFPL obtained boiler license from Boiler Directorate. Obtain permission to erect the boiler through an authorize boiler repairer from the Chief Inspector of Boilers. 3. FSSAI License FSSAI is an abbreviation used for Food Safety and Standards Authority of India. FSSAI license is mandatory before starting any food business. All the manufacturers, traders, restaurants who are involved in food business must obtain a 14-digit registration or a license number (10012022000206) which is printed on all food packages of Mapro. This step is taken by government’s food licensing & registration system to ensure that food products undergo certain quality checks, thereby reducing the instances of adulteration, substandard products and improve accountability of manufacturers by issuing food service license. 4. Labour License- Labour license is obtained from Udyogbhavan, Satara. It is needed to have a proof that Mapro does not employ child laborers in the organization.
  • 52. 43 5. Explosive License Petroleum and Explosives Safety Organization (PESO) is a government organization created to regulate and monitor the manufacture, import, export, transport, possession, sale and use of explosives, petroleum products and compressed gasses as envisaged under the Explosive Act, 1884 and Petroleum Act, 1934. 6. MSEB License Maharashtra State Electricity Board provides electricity to MFPL. Mapro Foods Pvt. Ltd. organization uses electricity provided by Maharashtra State Electricity Board along with the Solar energy plant owned by the firm. ‘Mapro Foods Pvt. Ltd.’ has got license from MSEB office, Wai. 7. PAN Card Every person whose taxable income exceeds the basic exemption limit during an accounting year, is required to obtain Permanent Account Number (PAN) once for ever by making application in Form 49A, before 31st May of the assessment year. In case the total sales, turnover or gross receipts of the business or profession of the assess, exceeds or is likely to exceed. Rs.5,00,000 during an accounting year the application for the allotment of PAN should be made before the end of the accounting year. It is compulsory to apply for PAN, in above cases even though the tax payable is nil. 4.4 Resource use management: An the resource use management is necessary part of company the arrangement of resources are well managed at Mapro Table No. 4. 2 Resource use management of Mapro Fruit Products Sr. No. Resources Quantity/ Procured from 1. Land 3 Acre. 2. Water MIDC, Wai, Satara. 3. Capital Own Investment. 4. Electric Supply MSEB, Wai, Satara. 5. Raw Material - 6. Machinery and Equipment - 7. Manpower Employees
  • 53. 44 Above table no 4.2 shows resource use management of Mapro The information related to the resource use management of ‘Mapro Fruit Products’ was collected and presented in the a table Resources: 4.4.1 Land : The land is located at the MIDC area, generally an owner select such a location because the availability of road linkages and communication facilities are there. Mapro’s Fruit Products developed the site, by fencing with barbed wire and construction of internal road with entrance gate. 4.4.2 Water: The Mapro has adequate water supply which is used for cleaning of equipment; cold storage and drinking purposes. Treated MIDC water is the source of Mapro . It has good facilities for its storage without contamination and also water is used as an ingredient in processing and cooking. 4.4.3 Raw Material: The raw material is the backbone of processing industry. The pulp is a main raw material of Mapro’s the other raw material is sugar, pectin, citric acid and flavours. The fruit pulp is collected from different areas. The other raw material required for industry they are collected from the different regions and countries from company certified with ISO and FASSAI. Table No. 4. 3 Name of places from where raw material procure Sr. No. Type of Raw Material Places Where Procured A. 1. 2. 3. 4. 5. Fruits or Fruit Pulps Strawberry Alphanso Mango Banana Raw Apple pulp Orange juice Mahabaleshwar & Panchagani Konkan Jalgaon Himachal Pradesh Nagpur B. Sugar / sugar syrup Varna Sugar Industry, Bhuinj Sugar Industry C. Flavor Mumbai D. Color Nirali Pvt Ltd Mumbai E. Pectin Yantai Andre Pectin Co., Ltd( China )
  • 54. 45 Above table no: 4.3 shows the information related to the places from which raw material procured of ‘Mapro Fruit Products’ was collected and presented in the above table. 4.4.4 Machinery and Equipment’s: The different machinery and equipment is required for the processing plant based on the type of pulp received and products proposed. Create Changes in machineries according product demand 1. Sugar syrup tank Figure No. 4. 9: Sugar syrup machinery Purchase Price – Rs.5,00,000 Capacity- 3200 Lit Sugar syrup tank contains sugar syrup which is having capacity of 3200 liter’s. It is made up of stainless steel . It is directly connected to sugar syrup preparation plant besides the production line pipes. As the syrup is required the syrup order is given . The required quantity of syrup transferred to the tank F. Preservatives (Potassium Metabisulphite,KMS) Shandong Kunda Biotechnology Company Limited( China ) G. Water From Own Well
  • 55. 46 2. Syrup Mixing Tank Figure No. 4. 10 Mixing tank Purchase Price – Rs. 3 lakhs Capacity- 2,200 Lit Use – Used to mix ingredients of product. Its quantity holding is of 2200 litres. It is connected to syrup tank ,pectine tank ,autopack machine, A 5 Hp motor converts syrup from sugar syrup tank to tank , Both the tanks are interconnected so the liquid from one tank can be transferred to another for the convenience. 3. Internal Bottle Washer Figure No. 4. 11 Internal bottle washer Capacity – 32 bottles per min. Use- the ingredients are mixed with sugar syrup in syrup mixing tank This machine is used for washing the bottles internally with a small pressure stream of water. It washes nearly 16 bottles in one revolution. The equipement is mainly uses to clean the plastic bottles, glass bottle .
  • 56. 47 4. Capping machine Figure No. 4. 12 Capping machine Used – used to separate bottles for ease of sleeving by placing gap between two bottles Functioning – As bottles moves it seperates them by the srew type structure of rotary seperatr 10. Wetness Figure No. 4. 13 Wetness Purchase Price – Rs. 15,000 Use – Used to blow the water droplets present on sleeves of bottle by blowing air with pressure on bottles. Table No. 4. 4 List of machinery and equipment used by Mapro Sr. No. Machinery and Equipment Unit/ Capacity No. Uses 1. Sugar syrup tank (5000Litr.) 1 To store sugar syrup 2. Stirrer with motor - 1 To blend the mixture. 3. Kettle (200Litr.) 4 To boil the pulp. 4. Corking Chapper - 1 To press the metallic cap 5. Filler Machine 12000BPH 1 To fill hot syrup into jar.
  • 57. 48 Functioning- As bottles moves the sensor detects and blower wipes out the droplets by pressure. 11.Price and manufacturing date printer Figure No. 4. 14 Printer Purchase Price – Rs. 2,00,000 Use – Used to Print price, manufacturing date, batch no, on product Table No: 4.4 List of machinery and equipment used by Mapro The above table no.4.4 shows information related to the other machinery used in Mapro was collected and presented in the table. 6. Cooling Tunnel 1 To reduce the temperature of jam. 7. Belt conveyor 2 For transporting light- and medium-weight loads between operations, departments 8. Labeling Machine 1 For labelling purpose. 9. Tape Machine 1 For tapping carton boxes 10. Pallet truck 1 Move the material from one place to another. 11. Pallets 100 To place the material. 12. Heat exchanger 1 To exchange heat in kettle. 13. Transfer pump 1 Transferring jam syrup in filler 14. Hand trolley 5 To move the pulp barrel. 15. Boiler 1 To generating the steam.
  • 58. 49 4.4.5 Manpower At Mapro Fruit Products the management system is the framework of processes and procedure used to complete an organizational objective. It has 94 office staff members and labours. The labour required for processing department, packaging department, storage department, marketing department, account department, electrical Table No. 4. 5 List and number of employees worked at Mapro Sr. No. Category Number of workers Administrative Staff 1. Unit Manager 1 2. Marketing Manager 1 3. Purchase Manager 1 4. Personnel Assistant 8 5. Other Employees 9 Laboratory Staff 1. R&D 1 2. Quality Manager 1 3. Production Manager 1 4. Assistant 5 5. Workers 4 Cold Storage 1. Manager 1 2. Assistant 2 3. Workers 2 Boiler & ETP 1. Manager 1 2. Assistant 1 3. Workers 12
  • 59. 50 Above table No.4.5 shows that employee of MFPL in which Mapro has 117 total administrative and worker staff. In which jam and ketchup department has 23 employees in which 16 are workers and 7 are helper. 4.5 Human Resource Management Human Resource Management is a strategic approach for acquiring, developing, managing, motivating and gaining the commitment of the organization’s key resource – the people who work in and for it.HRM as organizational function of Mapro Foods Pvt. Ltd. deals with or provides leadership and advice for dealing with all issues related to the people in an organization. The department deals with compensation, hiring, performance Sugar Syrup Department 1. Incharge 1 2. Worker 2 Maintenance Department 1. Head 1 2. Electrician 6 3. Workers 9 Others 1. Security Guard 6 2. Driver 7 Jam Department Permanent Labour:- 1. Incharge 2 2. Supervisor 2 3. Operator 5 4. Kettelmen 2 Jam Department Daily Paid / Semi- Skilled:- 1. Workers 16 2. Helpers 7
  • 60. 51 management, organization development, safety, wellness, benefits, employee motivation, communication, administration, training and development of the personnel working in MFPL. The Human resource department in the Mapro Foods Pvt. Ltd. is headed by Human Resource Manager. There is staff of four members dealing with issues of the HR department and which functions as the HR department supporting staff. The HRM department members provide the knowledge, necessary tools, training, administrative services, coaching, legal and management advice, and talent management oversight that the rest of the organization needs for successful operation.HR department of MFPL works for the organizational development that generates the culture of the organization. It is charged with oversight responsibilities to ensure that the organization appropriately builds teams and inspires employee empowerment. 4.5.1 Human Resource Department policies 1. Leave policy 1) Weekly off- MFPL runs throughout the year with weekly off on Sunday for official staff and Tuesday for technical staff. Due to load shading on Tuesday in the area technical staff have weekly off on that day. There is no weekly off for the salesmen who works at retail outlet of MFPL. 2) Emergency leave- MFPL gives emergency leaves to the its workers but these leaves are non-paid leaves. 3) Paid holidays- National holidays such as independence day, Republic day are paid holidays for all workers of MFPL. 2. Recruitment policy 1) Age- The age of workers to be recruited for any post in industry must be above 18. As per Govt. norms it is mandatory not to employ child labour in any industry, hence this policy is adopted by MFPL. 2) Education- The worker to be recruited must have required qualification for the post to be recruited. 3) Interview- At the time of interview HR manager questions the candidate who is going to work in the industry. The interview is conducted to analyse the candidate suitability and efficiency to do particular job. 4) Medical fitness certificate– The candidate have to submit required documents to prove that he/she is medically fit for the work at industry by obtaining medical certificate from doctor.
  • 61. 52 3. Employee Welfare Policy 1) Medical Check-up – Mapro arranges medical check up annually. It includes blood, urine tests. 2) Medical Assistance – If there is any accident in the processing unit or outside industry Mapro assist in medical treatment by means medical fees. 3) EPFO - Employee’s Provident Fund (EPF) is a retirement benefit scheme that’s available to all salaried employees. It’s a savings platform that helps employees save a fraction of their salary every month that can be used in the event that you are rendered unable to work, or upon retirement. 4. Other Policies 1) No Alcohol Consumption – The consumption of alcohol and alcoholic product is prohibited in the premises of Mapro Foods Private Limited. 2) Restriction on drugs and tobacco products consumption – The consumption of drugs and tobacco product is restricted in area of company. It helped Mapro from the contamination in the products. 4.5.2 HRM's Focus HRM in Mapro has a strategic and comprehensive approach to manage people and the workplace culture and environment. Effective HRM department enabled employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. 4.5.3 Human Resource Management and Line Managers HRM functions are also performed by line managers who are directly responsible for the engagement, contribution, and productivity of their reporting staff members. They are also responsible for the ongoing development and retention of superior employees
  • 62. 53 4.5.4 Functions of Human Resource Management 1. Recruitment The Sources of Recruitment of Employees are as follows Figure No. 4. 15 Sources of recruitment (A) Internal Sources When a vacancy is available in the organization, it is given to an employee who is already on the pay-roll of MFPL. Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. Methods of Internal Sources : 1. Promotions Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities and more pay. The higher positions falling vacant are filled up from within the existing employees of MFPL. A promotion does not increase the number of persons in the organization. A person going to get a higher position will vacate his present position. Promotion motivates employees to improve their performance so that they can also get promotion. 2. Recommendation of Existing Employees The worker are familiar with existing conditions of industry, who recommends appropriate candidate to the Company. (B)External Sources: When existing employees are not suitable to recruit at higher positions, the organization uses the external sources for recruitment. In peak production season more Sources of Recruitment Internal Sources Promotio n Empo lyee Refer ences External Sources Labour Contract Factory gate Former Employee Casua l Caller s Central Applica tional File
  • 63. 54 persons are needed, i.e. in month of February to June. The entry of qualitative persons from outside is in the long-run interest of the MFPL Methods of External Sources: 1. Labour Contractors This method of recruitment is prevalent all the factories and also in MFPL for hiring unskilled and semi-skilled workers. The contractors keep themselves in touch with the labour and bring the workers at the factory where they are required. The contractors identified by the MFPL hires the labour from Nagpur (MH) and Madhya Pradesh in return they get commission for the number of persons supplied by them. 2. Factory Gates Certain workers from local area of Wai present themselves at the factory gate every day for employment. This method of recruitment is very popular in India and also in MFPL for unskilled or semi-skilled labour.The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for the vacancy. Hence this method is used only when there is intense need of labour at peak season of production in MFPL. 3. Former Employees In case, employees have been laid off or have left the MFPL at their own, they are taken back in vacancies, if they are interested in joining the concern (provided that their record is good). 4. Casual Callers Those personnel who casually come to the company for employment are considered for the vacant post. It is most economical method of recruitment.in MFPL it is rarely used as such employees are discontinuing their work. 5. Central Application File A file of past applicants who were not selected earlier is maintained. In order to keep the file alive, applications in the files are checked at periodical interval as per the vacancy in company.
  • 64. 55 4.4.5 Working season for the year 2018-19 of MFPL Mapro’s company worked 313 days in the year 2018-19. The working days in each month are shown in the graph 4.1 below Graph No. 4. 1: MFPL’s production line working days Mapro Foods Private Limited works throughout the year except holidays on Sunday for official staff and Tuesday for technical staff. National holidays such as independence day, Republic day are paid holidays for all workers. Mapro get Higher sale in vacation period because of many peoples comes for relaxing, in Summer season mapro Get higher sale. 4.6 Production management:- 4.6.1 Production Department:- 1. Production Planning:- In Mapro annual production target for the next year are prepared on the basis of installed production capacity of the plant and production data of the previous year. Necessary feedback is also taken from marketing department while fixing the production targets. The production targets are presented to the corporate office for review and approval by managing director, the plant managers are informed the same. The production and consumption ratios for the previous years are duly considered. All the data are compiled into form and production budget get fixed. A copy of the production budget is sent to finance department for preparing the finance budget. This production budget then acts as the basis for further performance monitoring. Based on the production plans, purchase raw 31 27 26 26 27 25 27 27 25 27 26 26 26 24 21 16 11 6
  • 65. 56 materials. In the event of any change in the annual production plant becoming necessary, the corresponding change in the raw material requirements are intimated to the purchase department. Production planning department receives data from all the plants and the other interfacing departments and compiles them. Various reports- daily production reports monthly reports and yearly reports are sent to the management. 2. Type of Production System:- Batch production system:- At Mapro Fruit Products here the firm either receives order from the customer at regular intervals or it may produce the product to satisfy the demand. It has well designed file of its plans, material requirement and instructions for the ready reference. It can also purchase materials required in bulk in advance. As the frequency of regular orders goes on increasing the batch production system becomes mass production system. Also in case of the demand for a particular product ceases, the plant and machinery can be used for producing other products with slight modification in layout or in machinery and equipment. And if the demands of particular product will increases then the production will manages
  • 66. 57 4.6.2 Products Selected for Study:- Grape Crush:- Ingredients: - Grape Crush pulp, sugar, pectin, colour, flavour, citric acid etc. Nutritional Facts * Approx. Value 100 gm. Table No. 4. 6: Nutritional facts for Grape Crush Nutritional Facts (Approx. Values) Sr. No. Contents Nutritional values Per 100 ml 1 Energy 298.0 Kcal 2 Total Sugar 75 g 3 Carbohydrate 76 g 4 Fat 0.00 g 5 Protein 0.10 g Table No. 4. 7. Availability of Ingredients in Grape Crush Ingredient Details Sr. No. Ingredients 1 Sugar 2 Acidity regulator 3 water 4 thickener 5 Common salt 6 Food colour 7 Flavors 8 Class II preservative Table No:4.7.1 shows the ingredient used in Mapro for per kg of Grape Crush. It found that Grape Crush contains higher amount of Sugar, acidity regulator, water, thickner, common salt, food color etc.
  • 67. 58 4.6.3 Processing flow chart for making Grape crush : Figure No. 4. 16 Processing flow chart for Making Grape crush 4.6.4 Grape crush preparation process:- 1. Collection of raw material: - The first part of crush preparation process is start with the collection of raw material. The raw material is collected from different section of the unit; the main section of storage of raw material is the cold storage where fruit pulps are stored. Another section is raw material section, is especially flavours, pectin and other preservatives are stored in that particular area where hygienic condition is maintained. All raw material is checked before used to make the crush; aspects of quality are checked as per quality parameter of particular raw material. Add pulp/juice (As per specification) Addition of pectin (dissolve in hot water in a pectin mixing tank) continuous stirring Send a sample to Q.C. for analysis maintain brix (57 to 580 Bx) Addition of color and flavor and preservative mixing Filling (Pet Bottles) Labelling coding Packed in corrugated box storage
  • 68. 59 2. Addition of Grape pulp:- Figure No. 4. 17 Mixing tank Grape pulp are added into tank, tank are used for boiling the pulp and making the crush. The tank used for crush making process is mainly having 2250 liter’s capacity. The blender is also attached with the tank for the purpose to blend the mixture of ingredients. Added fruit pulp are boiled with the used of steam till the aspects of quality will gain. Temperature is adjusted by the heat exchanger pump. Well experienced men observed an and analyse the process, as per visual checking handling is go on. 3. Addition of hot syrup and pectin:- Figure No. 4. 18 Hot sugar syrup and pectin mixture As per the instruction of supervisor hot sugar syrup are added into tank. Sugar syrup is prepared in advanced in sugar syrup tank and then the syrup is taken into tank in required amount by the turning knob on of sugar syrup tank. Added sugar syrup are boiled and blended into kettle in this process cattlemen analyses the texture of material which are boiled in the tank.
  • 69. 60 Pectin is added into the tank which is the ingredient of Crush. The role of pectin is to thicken the syrup. The quantity of raw material is fixed. The all quantity are fixed by the recipe maker of the company. As per their instruction process of crush making is happened. 4. Checking of total soluble solid (T.S.S) Figure No. 4. 19 Hand refractometer The T.S.S is major by the use of hand refractometer. The pulp are and syrup are boiled till it gets 68° Brix 5. Addition of flavours and fragrances:- Flavours and fragrances are also fixed for all the recipes. Flavours are added for increasing the taste and quality of the crush. Flavours enhance the taste of the crush. A fragrance gives aroma to the Crush. The content is again stirred for about 10 minutes for proper mixing of crush. Here the Crush preparation process is completed and next filling ofbottled is started. Figure No. 4. 20 Flavours and fragrances
  • 70. 61 6. Filling hot into sterilized bottled:- Figure No. 4. 21 Filling machine The prepare content are passed through the pipe with help of pump into the holding tank. Pipes are connected between the holding tank and the filling machine. Operator operate this machine, as per their handling filler gets the content into filling machine and the process of filling hot recipe into the plastic jar and glass bottle. 6. Covering:- Figure No. 4. 22 Sleevs applicator machine Through conveyer belt, bottles are carried to auto covering machine. Labours at the inspection area machine checks if the bottles are covered properly. bottle is passed
  • 71. 62 through sealing machine; heat of the sealing machine is fixed so the bottle gets sealed without any damage. 8. Cooling: - Conveyer belt carries bottles into the cooling tunnel; here the bottles are also washed. When the bottles enter the cooling tunnel the temperature of bottle is 78°C and when it exits the tunnel temperature of bottle is 57°C. 9. Packing:- After labeling bottles are packed in cardboard boxes. Each box has different capacity of hold bottles in which each bottle holds 1 kg, 500gm ,250gm ,750 gm Crush. Boxes are packed by using tape machine which is used for tapping carton boxes. Storage:- Figure No. 4. 23 Storage of final product After boxing boxes are stored in stored houses. From store houses, boxes are transported to various destinations as per orders
  • 72. 63 2. Mint candy : Ingredients: sugar, flavor, Glucose Nutritional Facts *Approx value per 100 gm: Table No. 4. 8. Nutritional facts for Mint candy Figure No. 4. 24 Mint candy As shown in above table no. 4.8 total energy in 100gm is 384.13 Kcal and carbohydrates is 99.24g and protein is 0gm mint has a higher amount of suger 99.06g. Table No. 4. 9 Availability of Ingredients in Mint candy : Sr. No Name of Ingredients 1 Sugar 2 Glucose 3 Flavor Table No: 4.9 shows the ingredient used in Mapro for per kg of mint candy. It found that Mint candy contains higher amount of Sugar, Glucose, Flavor Facts Nutritional values Energy 384.13 kcal Carbohydrates 99.24g Protein 0 g Sugar 99.06 g Fat Nil
  • 73. 64 4.6.5 Flow chart for making mint candy: - 4.6.6 Procedure for making Mint candy: - 1. Collection of raw material: - The first part of the mint preparation process is started with the collection of raw material. The raw material is collected from a different section of the unit; the main section of the storage of raw material is the cold storage where the material is stored. Another section is the raw material section, is especially flavors, and other preservatives are stored in that particular area where the hygienic condition is maintained. All raw material is checked before used to make the candy; aspects of quality are checked as per the quality parameter of particular raw material. 2. Mixing of raw material: - Collection of Raw material Mixing of raw material Boiled all ingredient in mixing tank (1400 C) Delivered liquid candy into deposition machine Immediate cool down it (100 C) Wrape it with help of wrapping machine Packaging Storage
  • 74. 65 After collection of all raw material i.e. Suger, flavor, glucose mix it in mixing tank till all material dissolve well 3. Boiling: - After mixing all ingredient boiled it till 1400 C temperature, if the temperature goes below 1400 c its cause error and it's not use again. 4. Delivered to the Deposition machine: - After all raw material and ingredients become liquid then liquid form candy will be deposited to deposition machine, In deposition machine will be dropped liquid candy over the skeleton of candy and then candy will go to the cooling section. 5. Cooling: - After the deposition of liquid candy, then skeleton comes to the cooling section and then candy will be cool down in temperature of 120 C for their hardness. 6. Wrapping: - After cooling candy then it will immediately wrap by using machinery. 7. Packaging: - After wrapping candy then it will fill to bottles manually bottles are packed in cardboard boxes. Each box has a different capacity of hold boxes/bottles in which each bottle holds 1 kg, 500gm, 250gm, 750 gm mint. Boxes are packed by using a tape machine that is used for tapping carton boxes. 8. Storage: - After boxing boxes are stored in stored houses. From storehouses, boxes are transported to various destinations as per orders 4.6.7 Production Department Policy The Production Manager of the respective line is responsible for making sure that quality raw materials are provided and quality products are manufactured. He makes sure that work is carried out smoothly, and supervises procedures for making work more efficient and more effective. The Mapro Foods Pvt. Ltd. has build quality into every stage of the production process. Every employee is expected to take responsibility for managing quality issues in order to make sure that waste is minimized and quality maximized. 4.6.8 Objectives of production department 1. To keep production process running smoothly.
  • 75. 66 2. To achieve effectiveness in the production. 3. Proper Capacity utilization. 4. Flexibility in production. 5. To ensure quality of both raw materials and finished product. 6. The continue unhindered production. 7. Monitoring the quantity and quality of products coming out of a production line. 4.6.9 Production Planning decisions 1. Operating planning The production and planning department set standards and targets for the production process. The quantity and quality of products coming from production line is closely monitored. The MFPL has quality control approach, hence the quality is monitored by the supervisors and employees at every stage of production, rather than at the end 2. Capacity planning Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. In the context of capacity planning, design capacity is the maximum amount of work that an organization is capable of completing in a given period. This is a more conservative strategy and opposite of a lead capacity strategy It refers to adding capacity only after the organization is running at full capacity or beyond due to increase in demand. MFPL adopts this strategy because the products are cost sensitive and and thereby adopting such strategy decreases risk of waste. Also the products of this line are at maturity stage of their own life cycle i.e. PLC. For production line MFPL seen this strategy advantageous than the lean strategy because it reduces risk of overproduction, achieves greater productivity due to higher utilization levels, increases ability to put off large investments as long as possible, and saves organization in investing in the products having less or mere demand in market. It also adds capacity in small amounts in response to changing demand in the market. 4.6.10 Controlling decisions 1. Controlling inventories for production: - The production manager of line ensures the stock required for production is available and provides it for production. Here the purchasing department is responsible for providing the materials, components and equipment required to keep the production process running smoothly.