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Organization Study at Coffee Day


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When we think about refreshment, the first thing that comes to our mind is coffee or tea. Most people prefer coffee and most prefer tea and these two drinks have become a part of a human being’s life.

Here we (I) have concentrated on coffee which is considered as a traditional drinks especially in south India. People here start their everyday life with a cup of coffee. Not only in south India but in all parts of the world people are so dependent and addicted to coffee that it acts as a daily schedule to every body every where. But this coffee is not grown in all parts of the world but is grown in very few places with right kind or weather, atmosphere and most important of all, the soil of that region. It is usually grown in hill stations with adequate amount of rainfall and such places which are high above sea level. Therefore in India, Karnataka is such a place, especially South Karnataka which produces the highest amount of coffee in whole India. Most parts of Karnataka such as Chikmagalur district and many parts in Hassan District, and also Coorg.

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Organization Study at Coffee Day

  1. 1. WWW.PROJECTSKART.COM TRADING COMPANY LTD. Visit for more information INTRODUCTION When we think about refreshment, the first thing that comes to our mind is coffee or tea. Most people prefer coffee and most prefer tea and these two drinks have become a part of a human being’s life. Here we (I) have concentrated on coffee which is considered as a traditional drinks especially in south India. People here start their everyday life with a cup of coffee. Not only in south India but in all parts of the world people are so dependent and addicted to coffee that it acts as a daily schedule to every body every where. But this coffee is not grown in all parts of the world but is grown in very few places with right kind or weather, atmosphere and most important of all, the soil of that region. It is usually grown in hill stations with adequate amount of rainfall and such places which are high above sea level. Therefore in India, Karnataka is such a place, especially South Karnataka which produces the highest amount of coffee in whole India. Most parts of Karnataka such as Chikmagalur district and many parts in Hassan District, and also Coorg. So people here feel proud to be citizen of such place where coffee takes its birth. So that being the main reason, I have concentrated on a organization which has its roots spread very vast in coffee industry and is a major player in worlds import/export of coffee and deals in coffee beans curing activities present in Hassan. Uploaded for 1
  2. 2. WWW.PROJECTSKART.COM TRADING COMPANY LTD. “AMALGAMATED BEEN COFFEE TRADING COMPANY LIMITED (ABCTCL)” Having its head office in Hassan and spreads over all parts of India, it is the one of the biggest organization in the coffee industry. ABCTCL was stated in the 1991 year and owned by Mr. B.G Siddarth. Registered office of ABCTCL is in Chikmagalur and has its own coffee growing estate which spreads in a area more than 5000 acres in Chikmagalur district. Amalgamated Bean Coffee Trading Company Limited is perhaps one of the two fully integrated coffee companies of Asia, involved in all sectors of Coffee from plantations to retailing to exports. Amalgamated Bean Coffee Trading Company, better known as "ABC", is one of the largest exporters of green coffee from India since 1999. ABC's business mission has its roots in coffee knowledge. This culminates into an incessant effort to adapt to dynamics of the coffee market resulting onto a leadership role. ABC has invested well into a Research and development on coffee quality that supports our domestic promotion of various blends of coffee and augments our export activities. However the corporate office of ABCTCL is situated in Bangalore which manages all the activities of ABCTCL all over India. Uploaded for 2
  3. 3. WWW.PROJECTSKART.COM TRADING COMPANY LTD. COMPANY PROFILE PROMOTER Mr. B.G Siddartha is the owner and also the promoter and is the chairmen and managing director of ABCTCL. He with is own capital started ABCTCL in 1991 and is successfully managing it today with a wide network of people management. It is a private ltd. Company and dose not issue shares to the general public for raising capita. Private placement of shares is to be done and 20% of the shares of ABCTCL was issued to a MNC by Mr. Siddartha. PROCUREMENT AND CURING WORKS The curing activities of coffee takes place in Chikmangalur and Hassan, each with a storage capacity of 70,000 tons All the domestic dealings of India are managed by offices of ABCTCL which are located in places like Delhi, Chennai, Kolkatta and also in for off places such as Shimla and Assam. Uploaded for 3
  5. 5. WWW.PROJECTSKART.COM TRADING COMPANY LTD. COMPANY STRUCTURE As per the chart the works fields of ABCTCL are divided into seven major divisions they are.  Café coffee day  Exports  Beverages  Fresh & grounds  Express  Packaging  Plantations CAFÉ COFFEE DAY One of the most common names here today is one of the greatest achievements of ABCTCL. As known to everyone café coffee day are the café shops managed by ABCTCL and present in large number in all parts of India today. The brains behind success of café coffee day is one person: Mr. Naresh Malhothra, the president of café coffee day division. Its because of is dream to make people all over the world get wide range of coffee product at affordable prices, we have more than 500 café coffee day outlets in India today. They are also trying to cover the whole world market by establishing more and more retail coffee day outlets all over the world. The first step in world café market was taken in the recent years by establishing the first café coffee day outlet in Vienna, Austria. The whole café coffee day management is done by corporate office of ABCTCL in Bangalore through a wide network followed by Uploaded for 5
  6. 6. WWW.PROJECTSKART.COM TRADING COMPANY LTD.  State Mangers  General Mangers  City Mangers  Café coffee day outlet Mangers All these has proven café coffee day to be the most precious jewel of ABCTCL. Uploaded for 6
  7. 7. WWW.PROJECTSKART.COM TRADING COMPANY LTD. ABCTCL EXPORTS Since it is a export oriented unit, it exports its coffee beans to many parts of the word. ABCTCL exports has been one of the largest coffee export shipping close to half million bags in volume. The clients of ABCTCL include worlds biggest and most discerning roasters MNCs, trading companies and retail chains. But the major market of export of ABCTCL is Europe. About 98% of the whole export of ABCTCL is done to most of the European countries and in these European countries some of the biggest customers of ABCTCL are situated. The rest of the 2% of its exports is carried with USA, Japan and Middle east. These countries import coffee beans from ABCTCL and further process these beans and produce many varieties of coffee for their market. Even under domestic dealings some of the biggest MNCs like NESTLE are the customers of ABCTCL who create many coffee product and is present in Indian market as well as abroad. Some of the customer to whom ABCTCL exports its coffee are:  Sadnalji trading company Ltd.- SPAIN  Louis dreyfus trading Ltd.- UK  Alsroor Jabbar Ltd. – Kuwait  Bernharad Rothfos GMBH & company – Germany  Olan international Ltd. – SINGAPORE The above are some of the customers of ABCTCL abroad and have many other customers all over the world. Uploaded for 7
  8. 8. WWW.PROJECTSKART.COM TRADING COMPANY LTD. As far as imports are concerned, ABCTCL imports special variety of Arabica coffee from KENYA which is considered as one of the best in the coffee market. These coffee beans are longer in appearance and has a rich taste. Imports of ABCTCL are very few and above mentioned type is imported just to provide variety to consumers in India. Uploaded for 8
  9. 9. WWW.PROJECTSKART.COM TRADING COMPANY LTD. BEVERAGES Beverages in the general sense mean any hot refreshment drinks. So under beverages department of ABCTCL, it deals with coffee machines which prepare these beverages such as black coffee, regular filter coffee, instant coffee etc.. These machines are automated and require some raw materials to be fed in it before the preparation of coffee. After that just by the press of a button people can get different types of coffee ready to drink. So these department is concerned with selling of such coffee machines which are used in most of the offices and other work places with ready hot coffees for people who work their as and when they require it. These coffee machines create a huge market for ABCTCL which help in spreading coffee products of ABCTCL all over India. So separate department for selling and maintenance of these coffee machines is managed again with same chain of president and manager who concentrate only in this division. Uploaded for 9
  10. 10. WWW.PROJECTSKART.COM TRADING COMPANY LTD. FRESH & GROUND These are retail outlets of coffee day situated in all parts of India mostly in major cities all over India. These outlets provide customer with wide variety of coffee beans and provides both instant coffee and filter coffee options to the customer and customers are given choice to select their favorite variety of coffee beans which are later blended and coffee powder is provided to customer as per their required quantity and according to their requirement. Usually all the fresh and ground outlets are mange by the corporate office of ABCTCL, Bangalore. Uploaded for 10
  11. 11. WWW.PROJECTSKART.COM TRADING COMPANY LTD. COFFEE DAY TAKE AWAY The Coffee Day Take Away initiative is a virtual revolution in dispensing coffee. For the first time, it makes freshness a part of the vending machine proposition. Only the freshest ingredients are used and strict control is maintained to ensure that every cup delivers the satisfaction of a freshly brewed cup of coffee. Being a part of beverages and fresh and ground division,Coffee Day take away is a brand that has no substitute. Renowned for its aroma & flavour, Coffee Day has grown to be India's largest selling brand of fresh filter coffee powder. Amalgamated Bean Coffee Trading Company Ltd., the name behind Coffee Day Take Away, is one of the largest producers & exporters of coffee in the country. With over 5000 acres of coffee plantations and state-of-the-art curing capacity of 70,000 tons, it has the distinction of exporting more than 13% of India's coffee. The company has been responsible for transforming coffee retailing. With over 300 Coffee Day Fresh 'n' Ground outlets, it caters to over 1,20,000 customers every week. Taking the filter coffee experience forward. Expanding its beverage portfolio, the company has also launched superior Assam teas under the Tea Day brand. Through its Coffee Day Take Away vending machine initiative, the company will deliver what the consumer has been missing till now - authentic filter coffee and fine tea made available conveniently Uploaded for 11
  12. 12. WWW.PROJECTSKART.COM TRADING COMPANY LTD. PACKAGING This is one of the important division or department of ABCTCL. This packaging department includes the process of converting coffee beans into readily consumable coffee products and then packing them in to attractive packages with different quantities. This packaging takes place in a huge plant in Hassan where the head office of ABCTCL is situated. These packed products of both instant and filter coffee are then supplied to its retailer and its own fresh and ground outlets. But the marketing of these packed products is done by marketing manager from corporate office of ABCTCL, Bangalore. The head office in Hassan produces only that much quantity which is ordered by the Bangalore office as per the requirement. However the packed products are only used and marketed in domestic market and exporting of these packed products doesn’t take place. EXPRESS Coffee Day Xpress is a unique concept of convenient cafe, an idea that feeds a world that's continuously in transit. Uploaded for 12
  13. 13. WWW.PROJECTSKART.COM TRADING COMPANY LTD. The Coffee Day Xpress kiosk is a sanctuary where people can pause for refreshment before getting on with life. Retail custom-made for the 21st century. Catering to a world that needs coffee on the go! At high-traffic locations. With hot and cold beverages and a variety of ready-to-eat snacks. Amalgamated Bean Coffee Trading Company Limited – or ABC, as it is better known – is a fully integrated coffee company with a rich heritage that stretches over a century. Its endeavors find expression from coffee plantations to innovative retail concepts and even exports. To ensure that it remains a dominant force in the coffee sector, ABC has invested extensively in Research & Development to ensure quality coffee blends This division of ABCTCL managers the small coffee or café booths which we see these days in all the public places like shopping malls, bus station, railway station and other places where the general public roam in large numbers. The advantage of these express division is people can buy different types of hot and cold coffee in these public places when they hang out their. Apart from that this division manages the food products and other coffee product which are available in all the café coffee outlets these days. Usually the other food products which are available in café coffee day outlets are outsourced by these divisions to various other retailers who prepare these food products. The rest of the food products are prepared in café coffee day outlets by the help of well and experienced people. Uploaded for 13
  14. 14. WWW.PROJECTSKART.COM TRADING COMPANY LTD. PLANTATION This is the management of coffee plantations of ABCTCL. ABC has its seeds sown in the heart of the coffee cradle of India, Chikmagalur. The region is a world wrapped in primeval innocence, where panthers, tigers and elephants roam. Their passion for coffee stems from the august heritage of coffee estates inherited by the promoter's family. What started out with a small group of family- owned estates, gradually grew as more and more estates were included to finally form Amalgamated Bean Coffee Trading Co. Ltd. Uploaded for 14
  15. 15. WWW.PROJECTSKART.COM TRADING COMPANY LTD. The plantations nestled in Chikmagalur and Mudigere region of the Western Ghats, are spread over 5000 acres of well-maintained estates upto 4500ft above sea level. This makes us the second largest plantation company in the country. Their estates are the first and at present the only ones in India to be certified by the "Utz Kapeh Foundation" for efficient farm management and full traceability. These estates provide a natural habitat for several genus of flora and fauna. They are hosts to innumerable herbs, shrubs and trees like jackfruit, areca nut, orange, pepper, cardamom, etc. The coffees at estate are grown under the dark shades of various forest trees like silver oak, Indian Rose wood and various others. The estates share boundaries with some forest reserves and wild life sanctuaries and hence is also home to a variety of species of wildlife from birds and hares to deer,elephants, and even tigers! Other than the above procurement and storage of coffee beans is done in Hassan and Chikmagalur with huge procurement machine and large where houses which can store up to 70,000 bags of coffee. Uploaded for 15
  17. 17. WWW.PROJECTSKART.COM TRADING COMPANY LTD. PRODUCT PROFILE Obviously the product is coffee beans and coffee can be mainly divided into 2 types Robusta Arabica Arabica named for the Arabs, is the better and more expensive of the two. These trees grow in semitropical climates near the equator, both in the western and eastern hemispheres, at high altitudes. Because ripe Arabica cherries (unroasted beans) fall to the ground and spoil, they must be carefully monitored and picked at intervals, which increases production costs. Robusta trees which are grown exclusively in the eastern hemisphere, also thrive in equatorial climates, but at low altitudes. Their cherries require less care since they remain on the tree after they ripen. Robusta beans have twice the caffeine of Arabica, but less flavor. Some supermarkets carry Arabica, but most of their brands are Robusta. Coffee shops generally use Arabica beans, but because their brews are so strong, To describe the taste of Arabica is difficult without using trite words like smooth and mellow. It has a round taste that is both rich and delicate, with good acidity. This does not refer to an actual degree of acidity, but to the sharp and pleasing taste that is neither sour nor sweet. In fairness, although most Robusta coffee is of a lower grade and inferior to Arabica, there is a premium crop that is the top of the line for Robusta beans. Premium Robusta is primarily used in specialty espresso blends, and is never found in canned coffee. Though it only constitutes 5-15% of the blend, it is used Uploaded for 17
  18. 18. WWW.PROJECTSKART.COM TRADING COMPANY LTD. because these beans add body to the taste and make a nice creama in the shot of espresso. This additional body distinguishes the blend in a cappuccino or latte. Premium Robusta should only be used for espresso and not other brewing methods. If the coffee is Colombian, it will probably be Arabica on the side or back of the package, since this country produces nothing else. Guatemala, El Salvador, Tanzania and Kenya also produce all Arabica beans. Only these 2 varieties are grown in India because of the soil. But there are various subdivisions in these two types of coffee beans depending on its size colour and shape Again these two types that is Arabica and Robusta are brought in to ABCTCL by two ways Parchment Cherry Uploaded for 18
  19. 19. WWW.PROJECTSKART.COM TRADING COMPANY LTD. PARCHMENT It means bringing the cleaned beans or already separated and dried coffee beans in to ABCTCL. Usually this parchment is done by the estate owners through pulper machines which separate the beans from the cherry which are ripen and the beans are cleanly separated from cherry and all the remains are eliminated as waste and then these beans are dried and then transported to ABCTCL where the further Processing of the beans are under taken . Uploaded for 19
  20. 20. WWW.PROJECTSKART.COM TRADING COMPANY LTD. CHERRY As the name indicates, it is the raw cherry which is grown in these 2 types of plants. They are directly purchased and brought to ABCTCL in a ripe cherry form and even removing the bean from the cherry is done by ABCTCL, head office, Hassan & Chikmagalur after bringing to ABCTCL. Here the work will be more to this curing works as it is brought in raw form Arabica is grown from December to March and these four months are considered the best season for growing Arabic and plucking. Most of Arabica beans are exported to USA (New York) Robusta season is from Feb/Mar to May every year and considered best for these beans (coffee). Most of Robusta coffee is exported to U.K (London) Arabica parchment is plucked in 3 rounds I Round :- Plucking of coffee from plants when they are fully ripe and ready to pack. II Round :- Plucking of half ripe coffee beans III Round :- Plucking of cherry Arabica coffee is strong and doesn’t fall down form the plant even due to heavy rains. It has to be plucked. Uploaded for 20
  21. 21. WWW.PROJECTSKART.COM TRADING COMPANY LTD. Arabica coffee is more costly than Robusta because of its strong flavors and taste. Robusta coffee is lighter in nature and will easily fall off from the plant due to rains. So more care has to be taken with this breed. Uploaded for 21
  22. 22. WWW.PROJECTSKART.COM TRADING COMPANY LTD. Table showing different types & sub divisions of coffee beans. Types Arabica Arabica Robusta Robusta parchment Cherry Parchment Cherry S AAA AA AA AA U AA A A A B A AB AB AB D B C C C I C PB PB PB V PB BB BB BB I BB Bits Bits Bits S Bits I EB O N S AAA =Triple A AA =Double A PB =P Berry BB =Black Berry EB =Elephant Berry Uploaded for 22
  23. 23. WWW.PROJECTSKART.COM TRADING COMPANY LTD. After all the above various types of coffee beans, there is also one more type of coffee known as specialty coffee. These coffees are produced by grinding two or more types of coffee beans together. As in the chart consisting types of beans Arabica AAA may be grinded with Arabica AB or PB, also with the varieties of Robusta parchment & cherry. Like wise by combining all types of coffee beans with each other using probabilistic methods results in birth of specialty coffee. There is also a type known as MONSOONED COFFEE. Known across the world, as unique coffees processed as per centuries old traditions, "Monsooned coffee" was first produced quite by accident. In the earlier days, coffee shipped from India to Europe took almost six months to reach its destination. During that shipping process, the humidity at sea changed the beans allowing it to acquire a distinct rich, mellow taste and a unique golden look. With the coffee beans 'swelling' due to the moisture in the air, a new kind of coffee was born - Monsooned Coffee. Today, this entire flavour and experience is recaptured by the special process of "monsooning". The Monsooning process reforms the colour and the physical characteristics of cherry coffee. The colour is changed to a golden yellow. The beans swell in size and the bulk density is reduced. The cherry/fruity taste disappears and the liquor is soft, rich, velvety smooth and mellow with light acidity and a pleasant earthy flavor. Uploaded for 23
  24. 24. WWW.PROJECTSKART.COM TRADING COMPANY LTD. In this case the coffee beans are dried in a humid atmosphere which results in a unique golden look on the coffee beans and a mellow taste which is rich in flavor. It also results in a slight swelling of the coffee beans. This is usually done in costal areas where the temperature is very humid. Even Monsooned coffee has different types such as  Monsooned arabica AA  Monsooned arabica Basanaly  Monsooned arabica Triage  Monsooned Robusta AA  Monsooned Robusta Triage Uploaded for 24
  25. 25. WWW.PROJECTSKART.COM TRADING COMPANY LTD. COMPETITORS As every other industry, even the coffee industry has lots of competitors. But the competitors of ABCTCL are divided into 2 main groups as follows  Competitors in procurement or curing  Competitors in domestic market The competitors in procurement or curing work of coffee beans are many in the field. These competitors also indulge in import/export of coffee beans as ABCTCL. Some of the competitors in this field for ABCTCL are  Allan coffee curing works  Jayanthi group  General commodities ltd.  Nestle company ltd.  ITC ltd.  Ned commodities ltd. In domestic market there are lots of retailers who compete with ABCTCL in the domestic market. Even though only 10% of ABCTCL’s products are marketed in domestic market, there are lots of competitors even to compete for this 10% of coffee products of ABCTCL. Some of these competitors are  Narsus coffee  Hindustan lever ltd. (HLL)  TATA coffee Uploaded for 25
  26. 26. WWW.PROJECTSKART.COM TRADING COMPANY LTD. UTZ KAPLIH CERTIFIED. ABCTCL is a UTZ kapeh certified organization. UTZ kapeh certification is a worldwide and market driven initiative for responsible coffee production & sourcing. It aims at bringing about complete transparency in the supply chain of coffee from farm to the cup. This shows the success of ABCTCL in its functioning COFFEE INDUSTRY IN INDIA Indian coffee industry is defiantly a huge sized industry which plays a very major role in the world market of coffee. India at present is in 8 th place in its contribution of coffee and its plantation in the whole world and 1 st place being Brazil. But not all parts of India produces coffee. It is grown mostly in south India and highest part of its growth from the whole India is in Karnataka, that is from districts of Hassan, Chinkmagalur and Coorg. Rest is grown in states of Tamilnadu, Andrapradesh, Keral and other northern parts such as Sikkim and Nagaland. So as shown in the next table about the quantity of coffee that is produced in the whole India we come to know that the whole output of India is 2.88 lack tones coffee per anum, more than 2 lack tones is grown only in Karnataka and rest in other parts of India as mentioned in the table below. So among 2.06 lack tones of whole Karnataka’s coffee production, ABCTCL has a huge contribution to coffee exports among the many competitors in the same business as mentioned earlier. Uploaded for 26
  27. 27. WWW.PROJECTSKART.COM TRADING COMPANY LTD. PRODUCTION OF COFFEE IN MAJOR STATES / DISTRICT (ZONES) OF INDIA (IN M / TONS) State / District Year 2006 / 2007 Arabica Robusta Total Karnataka Chikmagur 41,550 31,000 72,550 Coorg 21,700 85,800 107,500 Hassan 17,000 8,975 25,975 Sub – Total 80,250 125,775 206,025 Uploaded for 27
  28. 28. WWW.PROJECTSKART.COM TRADING COMPANY LTD. ORGANIZATION STRUCTURE As the company is very vast in its size only a part of company is covered, that is the head office of ABCTCL in Hassan. ABCTCL HEAD OFFICE - HASSAN As mentioned earlier, the head office of ABCTCL situated in Belur road in Hassan has its main work in procurement of coffee beans and is a export oriented unit which is controlled by the corporate office of Bangalore to certain extinct. 90% of the coffee dealings of ABCTCL is its exports and rest 10% of it is in domestic dealings. So the head office at HSN plays very important role in success of ABCTCL. Even many domestic dealings of ABCTCL is carried on by head office in Hassan such as supply to all its fresh and ground outlets in and around Hassan district. But this is done only by orders from corporate office Bangalore. So here the organization hierarchy of ABCTCL Hassan is shown in the next chart from peoples authority shown from top to bottom. Uploaded for 28
  30. 30. WWW.PROJECTSKART.COM TRADING COMPANY LTD. As shown in the chart the organization hierarchy is as follows: At the top of the company there is Mr. B.G Siddarth who is the sole chairmen and managing director of the company. Mr. Siddarth manages the whole ABCTCL through a bunch of presidents in all departments and divisions of the company. Here the president of ABCTCL head office is Mr. Rajeev Guptha who is in charge of all the activities of Hassan head office. He controls it form corporate office of Banglore and the senior general managers in Hassan head office have to act as per the instruction of Mr. Rajeev Guptha. Under Mr. Rajeev Guptha, Hassan head office is totally manage by two senior general managers 1. MR. H.A VINAY – Senior General Manager of  Public Relations  Finance  Accounts  Procurement He manages interaction with suppliers or estate owners, all the financial transaction of ABCTCL by terms of payments and other monitary issues by final checking and passing of invoices, maintenance of proper books of accounts from time to time and along with it manages the procurement process of coffee. Under Mr. H.A Vinay there are 2 assistant general managers: Assistant General Manager Procurement : He is in charge of the whole procurement process of coffee after it gets into ABCTCL. Uploaded for 30
  31. 31. WWW.PROJECTSKART.COM TRADING COMPANY LTD. He manages executive, superiors and sub-staff who are 10 in number. These people are in charge of agent management of ABCTCL, Hassan and managing the contractual labour required for procurement process. Assistant General Manager Accounts : he is in charge of managing the books of account and preparation of invoices and payment cheques which are to be send to estate owners who sell their coffee to ABCTCL and also payment of commission to the agent for convincing estate owners to sell their coffee beans to ABCTCL. He also manages a sub-staff who are 4 in number and perform all the accounting work and minor transaction required for accounting. 2. MR. NANJUDA – senior general manager of  Production  Maintenance He manages the production process of coffee, management of garblers (manual labour) and final dispatch of coffee as per the orders. He manages 1 Assistant General Manager of Production who supervises the production process which carries on through huge hulling machines, color sorting machines and roasting machines. This assistant general manager again manages executives and staff who are 15 in number and looks after each and every process and manages contractual labour and garblers who indulge in manual separations of coffee beans and final bagging of coffee and loading it into trucks. Uploaded for 31
  32. 32. WWW.PROJECTSKART.COM TRADING COMPANY LTD. However apart from the finance and production department, there is no marketing department in Hassan head office of ABCTCL because it is export oriented unit and all the marketing activities are carried out by marketing managers from Banglore in corporate office of ABCTCL. Even human resource managers of ABCTCL are from Banglore office and all the human welfare activities of the employees are carried out from their though regular visits by HR managers to its various branches. Uploaded for 32
  33. 33. WWW.PROJECTSKART.COM TRADING COMPANY LTD. FUNCTIONAL AREAS Here in this chapter the functional areas of ABCTCL, Hassan head office has been covered and matters relating to people in the organization, systems and procedure adopted in the functioning of the organization, polices followed for the maintenance of the organization and also the production procedure which followed in the organization is mentioned in detail. PEOPLE People are considered one of the most important asset of ABCTCL. The whole company is successful through a huge chain of people who mange the functioning of this company. Even in Hassan head office of ABCTCL people management is done to certain extent. There are about 35 people from top to bottom (permanent and temporary staff) which exclude the contractual labour who may differ from 130 to 150 or 200 depending on the work in on season and off season of coffee growth. Pay for the people may vary from Rs.5000 to Rs.85000 (excluding the contractual labour) depending on the person’s position in the organization. Labourers are paid depending on their work rate which may also differ seasonally. The recruitment of people until the assistant general manager post and also the pay to them is done directly by the president and other head authorities directly from Banglore office of ABCTCL and the recruitment and pay for the general staff, sub-staff and the labourers is managed by the senior general managers and assistant general managers in Hassan. Uploaded for 33
  34. 34. WWW.PROJECTSKART.COM TRADING COMPANY LTD. Usually experienced people with high skills are selected and qualification must be Charted Accountant (CA) and Master of Business Administration (MBA) of the people who get selected for such high post and HR management is done by HR managers from Bangalore through out the company. Apart from the people with in the organization, ABCTCL in Hassan also manages a chain of agent related to it. These agents are situated in most part of Hassan, Chikmagalur and Coorg districts. These agents have the job to convince the estate owners to sell their coffee to ABCTCL and should keep them inform about the advantages and the prevailing prices of coffee as per the bag rate in ABCTCL. There are about 40 to 42 agents of ABCTCL head office, Hassan who are also provided with small warehouses of about 100 baggage capacity and are paid commission for acting as an attractive link between the estate owners and ABCTCL. And these entire agents are personally managed by Hassan head office of ABCTCL. POLICIES There are many policies which are followed such as  Company policy to bare the transportation expenses of estate owners.  Policy of good customer relationship maintenance.  Maintaining good relationship with the agents of ABCTCL.  Controlling agents in such manner so that they should loyally do their agent work only to ABCTCL & not indulge with any of its competitors.  Providing fringe benefits to all its employees and customers etc. Uploaded for 34
  35. 35. WWW.PROJECTSKART.COM TRADING COMPANY LTD. SYSTEMS & PROCEDURES Now man has taken up the challenge with exceptional care in nurturing the coffee, highly selective picking, perfection in curing, exactitude in roasting and mastery in blending. Under this we come to know about what actually happens in ABCTCL Hassan and how the curing works takes place. First of all the raw coffee beans (parchment or cherry) are brought into ABCTCL Hassan head office and stored into big warehouses. This raw coffee is brought from the own plantation of ABCTCL and also through the help of agents who supply coffee of many other estate owners. The procurement process takes place. The cherries are converted into coffee bean by pulper machines and parchment is done. Next under procurement, the coffee seeds go through a quality checking process where the right moisture content in the coffee beans is checked and all the coffee beans are brought into right moisture condition before they are entered into the production process. The appropriate moisture content in the coffee beans which should be present before the coffee goes into production process is  Parchment – The moisture content should differ from between 10.5% to 11.5%  Cherry – The moisture content should differ from between 11% to 12%. This is done by drying the coffee beans in sun and preparing them for the production process. Uploaded for 35
  36. 36. WWW.PROJECTSKART.COM TRADING COMPANY LTD. Production Process The dried coffee is transferred to hulling machines. These CNC machines carry on the process of DEHASKING, that is removal of the skin from coffee beans and the skin is removed as waste. These machines are 3 in number and 1 is imported from Buler Comp, Germany costing Rs. 40 lacks. Other 2 are Indian made & costs Rs. 25 lacks each. Next polishing of coffee beans takes place to bring the smooth texture and shiny look in coffee beans. After that these polished coffee beans enter a colour sorting machine which differentiate green coffee beans from black. Green coffee is more costly and is considered as proper bread with good quality whereas black beans are considered as low quality coffee. These colour sorting machines are imported from USA and is worth Rs.40 lacks. Uploaded for 36
  37. 37. WWW.PROJECTSKART.COM TRADING COMPANY LTD. Next the coffee enters the roasting machines and is roasted to get the original look and colour of coffee. The roasting machine is worth Rs.80 lacks and is imported from Germany. This roasting process is one of the most important process in coffee curing where the real colour and taste of coffee is emerged. After roasting, GARNING is done by manual labours and defectives are removed. Grading of coffee is done and are separated according to its size, colour and appearance and are given quality names such as AAA, AA, PB, BB etc Each different type is loaded and packed into bags and rates are based on bag. The baggage quantities of each bag are as follows. Unprocessed coffee-50 kgs/bag Processed coffee-75 kgs/bag (domestic dealings) Processed coffee-60 kgs/bag (export dealings) Each types of coffee is placed in different places in warehouses and as and when the export orders are placed in Banglore, coffee is loaded into containers, weighed to know the requirement and the trucks are sent to Banglore which are checked again and further sent to Chennai port for shipment and export. Uploaded for 37
  39. 39. WWW.PROJECTSKART.COM TRADING COMPANY LTD. SWOT ANALYSIS Here is the analysis about the Strengths, Weaknesses, Opportunities and Threats of ABCTCL. STRENGTHS:  The biggest strength of ABCTCL is that it is the only company in coffee industry with a complete chain of coffee operations. ABCTCL carries its operations right from the growing of coffee to the consumption of coffee by the final consumer. It grows coffee in its own land, procures it, carries productions, exports it, produces ready coffee products and has also conquered the domestic market. All its competitors are indulged only in few activities but ABCTCL manages a complete chain of its operation.  Among ABC's biggest strengths are the two curing works, strategically located in Chikmagalur and Hassan with a combined installed capacity of 1 million bags.  Having our own curing works aids in enabling complete control over grading standards and flexibility. Thus ensuring quality and efficiency.  A highly disciplined and dedicated network of over 42 agents who operate throughout the major coffee growing areas of India form the back bone for our coffee procurement chain.  Our vertically integrated infrastructure ensures that the coffees never need to leave the able hands of ABC until final dispatch/shipment. Uploaded for 39
  40. 40. WWW.PROJECTSKART.COM TRADING COMPANY LTD. Another Strength may be its size. As it is one of the biggest coffee curing company, it has even advantage in price stabilization (volatility). WEAKNESS There are no major weaknesses but one of its weakness is the higher quality coffees in the world market such as Brazilian coffee, Kenyan coffee etc.. which are of the best quality and rate in the world market of coffee. OPPORTUNITIES The overseas market demand for coffee is one of the biggest opportunities for ABCTCL. The demand by European countries and many other countries of the world for Indian coffee has created and also creates huge market in future. Globalization and liberalization has played a very important role in these overseas dealings of ABCTCL. THREATS New entrants in Indian market for coffee is one of the biggest threat for ABCTCL for example :- STAR BUCKS, a company from USA is trying very hard to enter the Indian market and trying to take over the café coffee day outlets of ABCTCL. It is a very big company and has high quality standards. However it has not yet been a possibility because of its high costs. Other than that here is a threat of changing quality of coffee and its rates due to natural reasons. Change in money value in foreign exchange is also a threat to ABCTCL. Uploaded for 40
  41. 41. WWW.PROJECTSKART.COM TRADING COMPANY LTD. VISION/MISSION ABCTCL is right now a 500 + crore company and has a very big share in export market of Indian coffee. However their vision is to be a 1000 crore worth company until 2010, and also to conquer the whole export market of India. Its mission is to avoid the new entrants in café coffee day market, so it is very fastly conquering the whole Indian café outlet market by very fastly developing the outlets and today it has nearly 600 café coffee day outlets all over India and 200 are present in Banglore. GOALS Indian coffee is exported to all parts of the world. But except in India it is no where called as Indian coffee and doesn’t have a name and popularity. So the goal of ABCTCL is to make the world recognize Indian coffee as Indian coffee and not anything else. So café coffee day outlets are being planned to open in all parts of the world such as one present in VIENNA, Austria and make the Indian coffee popular. Uploaded for 41
  42. 42. WWW.PROJECTSKART.COM TRADING COMPANY LTD. OBJECTIVES The following are some of the objectives of ABCTCL Foreign dealings improvements and maximization Revenue maximization Creating a monopolistic market in India Adopt new methods for profit maximization Promote Indian coffee market. To provide the consumer a superior coffee-chicory blend that he or she has been drinking till date To provide a superior product than what others have been offering To be available in every possible retail outlet which ensures convenience and ease in availability To provide the best quality of coffee- chicory blend at value for money prices. So here in this chapter we come to know about the vision, mission, goals and objectives of ABCTCL and along with it the SWOT analysis has been done by personal interaction with the SGM of the ABCTCL, head office, Hassan. Uploaded for 42
  43. 43. WWW.PROJECTSKART.COM TRADING COMPANY LTD. FINDINGS The following are some of the findings as per me by working in ABC Trading Co. Ltd.  It is highly successful in the world coffee market and has grabbed huge share of export market of coffee in India.  It has the biggest plantations of its owns which is more than 5,000 Acres in Chikmagalur District, which no other coffee exporting company in India has.  It is the aim of ABCTCL to make Indian coffee popular all over the world.  A highly disciplined coffee procurement network which has been established, natured over the liberated years following 1993.  All the market restructuring & disturbances are handled by high flexibility of production in its curing stations having over 1 million bags capacity  It has its complete control over grading standards and market needs.  It is managed by highly skilled and professional people in all its departments which has resulted in success of ABCTCL. Further about the company can be known in conclusion part of this report. Uploaded for 43
  44. 44. WWW.PROJECTSKART.COM TRADING COMPANY LTD. CONCLUSION As mentioned earlier and also by going through the whole company profile and other data, it is clear that ABCTCL as a very big name and share in the whole coffee market of the world and is one of the fully integrated coffee companies of Asia. Its exports make ABCTCL as a second largest origin exporter in the world. Their client list includes some of the world’s biggest and most discerning roasters, MNCs, trading company and retail chains. By working in such a successful organization, I have come to know lot about this organization’s functioning and its markets. This is not surprisingly because of the rich, unique blend of elements, vast, fine estates, exacting quality control over processing, absolute commitment and integrity and most significantly, a sense of dynamism of striving for the extraordinary and lots more to offer, ABC is one of the most professional in its nature. They continuously strive to identify customer needs & constantly work on ways to present Indian coffee to the world market and we can say that the competition for ABCTCL comes not from within India but from other coffee nations such as Brazil, Columbia and Kenya. Even though there is competition from so many courtiers, this company tries very hard & is also successful to grab a huge share in the world market. Uploaded for 44
  45. 45. WWW.PROJECTSKART.COM TRADING COMPANY LTD. The success of this organization in its exports is known by the various awards received by ABCTCL such as:- YEAR AWARD 1999-2000 Top exporter of green coffee 2000 Top exporter of coffee to the region: U.S.A 2000-2001 Top Exporter Of Coffee To The Region: European Union Rather than its success in exports, it is also successful in all its divisions management such as café coffee day division, beverages division, fresh & rounds etc.. Its success in domestic market can be seen in our daily life with hundreds of café outlets and coffee vending machines, resulting in millions of Indian consumers consuming coffee products of ABCTCL everyday. This company has so for captured a major parts of Indian market and yet is trying very hard to conquer the whole market within few years from now. Uploaded for 45
  46. 46. WWW.PROJECTSKART.COM TRADING COMPANY LTD. And by personally experiencing the functioning of ABCTCL and also by seeing its business strategies, I can say no wonders it will definitely achieve its goals in the mere future. Even the procurement and production process of coffee takes place very accurately in the Hassan organization of ABCTCL and standards for each and every step is maintained and followed. Uploaded for 46
  47. 47. WWW.PROJECTSKART.COM TRADING COMPANY LTD. DRAWBACKS: But there is no business without drawbacks. Even ABCTCL has few drawbacks as any other business and this is noticed by me personally. The procurement process goes very accurately as mentioned above but only to a certain extinct. It means, until the beans are processed in machines, technology is used to highest extinct. But after the beans come out of machines completing all the processes usage of technology becomes nil. The rest of the work is totally done by manual labours (GARBLERS) which I feel is a waste of time and money to a certain extinct. Processes such as separations of different varieties of beans, grading, filling them into bags and also loading into trucks is done by human labour for which technology can be used. Uploaded for 47
  48. 48. WWW.PROJECTSKART.COM TRADING COMPANY LTD. RECOMMENDATION: Further new improved machines can be installed to carry on the process of bagging, separations etc.. For loading the bags into trucks, tread mill kind of machines can be used which reduces the effort and number of manual labour and speed can be picked up. A good office automation process may be carried out by replacement of outdated computers and a improved internet network within the organization. So rather than the above few drawbacks of ABCTCL head office, everything else is not blamable and rest is taken care in a efficient way by the people and the authorities of this organization who have the ability to manage the problems effectively and manage the day to day functioning of ABCTCL Trading Co. Ltd. Uploaded for 48
  49. 49. WWW.PROJECTSKART.COM TRADING COMPANY LTD. BIBLIOGRAPHY SOURCES OF INFORMATION Print Material : Bean talkin’ Volume 1-13 Broachers & booklets of ABCTCL Personal interaction with staff of ABCTCL, Head office, Hassan & Senior General Manager Mr. H.A Vinay Websites : Amalgamated bean coffee trading Co. Ltd. – Uploaded for 49