comparision between amul & vadilal


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comparision between amul & vadilal

  1. 1. Introduction of AMUL Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand . In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. It is based in Anand town of Gujarat and has been a sterling example of a co-operative organization's success in the long term. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand . The brand name Amul means “AMULYA”. This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food 1
  2. 2. brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). GCMMF Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade . Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets .Other potential markets being considered include Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF. 2
  3. 3. ACHIEVEMENT Amul :Asia s largest dairy co-operative was created way back in1946 to make the milk producer‟ self-reliant and conduct milk- business with pride. Amul has always been the trend setter in bringing and adapting the most modern technology to door steps to rural farmers. Amul created history in following areas: a)First self motivated and autonomous farmers organization comprising of more than 5000000‟ marginal milk producers of Kaira District. b) Created Dairy co-operatives at village level functioning with milk collection centres owned by them. c) Computerized milk collection system with electronic scale and computerized accounting system. d)The first and only organization in world to get ISO 9000 standard for its farmers co-operatives. e)First to produce milk from powder from surplus milk. Amul is the live example of how co-operation amongst the poor marginal farmers can provide means for the socio-economic development of the under privileged marginal farmers. Amul in abroad: Amul is going places. Literally. After having established its presence in China, Mauritius and Hong Kong, Gujarat Cooperative Milk Marketing Federation (GCMMF), India s largest milk‟ cooperative, is waiting to flood the Japanese market. Then, GCMMF is also looking at Sri Lanka as one of its next export destinations. Amul products are already available on shelves across several countries, including the US, China, Australia, West Asian countries and Africa. GCMMF recorded a turnover of Rs 2,922 crore last fiscal. Its products include pouch milk, ultra heat treated (UHT) milk, ice-cream, butter, cheese and buttermilk. 3
  4. 4. PEOPLE POWER: AMUL'S SECRET OF SUCCESS The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.Amul sells 35 million litres of ice-cream valued at more than Rs 200 crore out of a total branded ice-cream market of 100 million litres worth Rs 600 crore. The Amul ice cream business is currently growing at the rate of more than 20 percent Members: 13 district cooperative milk producers' Union No. of Producer Members: 2.6 million No. of Village Societies: 12,792 Total Milk handling capacity: 10.16 million litres per day Milk collection (Total - 2006-07): 2.38 billion litres Milk collection (Daily Average 2006- 07): 6.5 million litres Milk Drying Capacity: 594 Mts. per day Cattlefeed manufacturing Capacity: 2640 Mts per day Sales Turnover Rs (million) US $ (in million) 1994-95 11140 355 1995-96 13790 400 1996-97 15540 450 4
  5. 5. 1997-98 18840 455 1998-99 22192 493 1999-00 22185 493 2000-01 22588 500 2001-02 23365 500 2002-03 27457 575 2003-04 28941 616 2004-05 29225 672 2005-06 37736 850 2006-07 42778 1050 BOARD MEMBERS Shri Ramsinh Prabhatsinh Parmar Chairman Shri Rajendrasinh Dhirsinh Parmar Vice-Chairman Shri Dhirubhai Amarsinh Zala Director Smt. Mansinh Kohyabhai Chauhan Director Shri Maganbhai Gokalbhai Zala Director Shri Shivabhai Mahijibhai Parmar Director Shri Pravinsinh Fulsinh Solanki Director 5
  6. 6. Shri Chandubhai Madhubhai Parmar Director Shri Bhaijibhai Amarsinh Zala Director Shri Bipinbhai Manishankar Joshi Director Smt. Sarayuben Bharatbhai Patel Director Shri Ranjitbhai Kantibhai Patel Director Shri B. M. Vyas Managing Director G.C.M.M.F Shri Deepak Dalal District Registrar Shri Rahul Kumar Managing Director AMUL is all set to storm the Ice cream market with a new range of probiotic ice cream aimed at the total health conscious. Proboitic means “ for life”. Probitics are defined as “live beneficial culture administered in adequate amounts which confer a beneficial health effect on the host”. The human large intestine is a active site of no of microorganism known as gut microflora. In a healthy person it a balance of a number of beneficial a bacteria. The gut microflora actively play a role in health maintenance by modulation of immune system, protection from pathogens and virus invasion through gastrointestinal tract. They also aid in food digestion. A part from these beneficial 6
  7. 7. bacteria also synthesize some vitamins in gut. Our food habit, living habit, medication to cure disease,stress & strain, age etc can cause the disturbance in balance of gut miroflora. The disturbed gut microflora can create a chance for pathogens and viral invasion. The products are: •Amul ProLife (Probiotic Wellness Ice Cream) •Amul Sugar Free (Probiotic Diabetic Delight) Amul ProLife (Probiotic Wellness Ice Cream) Probiotics are a live, beneficial culture, which when administered in adequate amounts, confer a beneficial health effect on the host. They help in digestion, improve the immune system, make the bones stronger, fight against allergic reactions and are effective in controlling travellers’ diarrhoea. They also help in the prevention of colon cancer and enhance brain activity. The Amul ProLife Probiotic Wellness Ice Cream has all these benefits. How is Amul ProLife ice cream beneficial? Probiotic ice cream is enriched with live beneficial cultures to help your overall. Executive VP – Inflight Services, said, “The improvements were prompted by surveys conducted among passengers, assessing their needs and ratings of our inflight products. The new products were developed in collaboration with leading gastronomic experts. We will be offering better quality meals and we have modernised the design of our trays, crockery and cutlery.” World Business Class World Business Class passengers travelling on KLM’s ex-India flights shall enjoy exquisitely prepared three-course Indian and Western meals. Passengers will be able to choose from new Indian menus developed in collaboration with renowned London-based Chef Andy Varma of the Vama Group and owner of the famous restaurant, The Indian Room in London. World Business Class passengers on all KLM flights ex-Amsterdam will be treated to the internationally renowned cuisine of Jacques and Laurent Pourcel from December 1, 2006 till the onset of summer 2007. The Pourcel brothers, who run top class restaurants in many countries, have produced recipes for the hors d’oeuvre, three main courses, and dessert. Intercontinental Economy Class On all flights to and from India, KLM’s Economy Class passengers will be offered a larger choice of Indian and Western cuisines, as a full menu and as accompaniments. Special attention will be given to local preferences. To complement the new meals, the trays, crockery and cutlery have been redesigned to improve meal presentation. Also, the current hot snack served shortly after the post midnight take-off from India will be supplemented with a snack box having a choice of three light snacks. The new Indian menus in ex- Amsterdam Economy Class have also been. well-being and health. Following are the benefits of having Probiotic ice cream: 7
  8. 8. •It improves the gut micro flora •Helps in digestion •Improves the mineral and vitamin absorptions from diet •Produces anti-microbial substances, which help in fighting against pathogens •Produces Vitamin B •Assists in healthy liver functioning •Supports cholesterol management •Prevents and reduces food allergies Prevents the formation and growth of colon cancer, if used regularly. Market estimates As many are today becoming health and calorie conscious, the market is growing. Amul estimates that it would expand the market by increasing customer base. Essentially, it would not only convert nonconsumers of ice cream into eaters but also increase frequency of ice cream eating. It expects to get 10 per cent additional growth only through the probiotic range. Since the company is the first to introduce the innovation, developed in-house, it expects to build the market and capture the entire market for probiotic ice cream. Amul Sugar Free (Probiotic Diabetic Delight) For diabetics, consuming ice cream had remained a dream. Amul is all set to change that with the launch of India’s first specially created Sugar Free Low Fat Diabetic Delight. In Amul Sugar Free Probiotic Diabetic Delight frozen dessert, sugar has been replaced with zero calorie and low calorie sweeteners called fructooligo- saccharides. Fructo-oligo-saccharides (FOS) are soluble dietary fibres that improve the mineral absorption and bone health in addition to increasing the disease-fighting ability of the body. Digestive enzymes sparingly digest these sweeteners in the stomach or small . Amul Probiotic wellness ice cream : • Improves immunity • Improves digestion • Prevent gut infection • Manages traveler’s diarrhea Available in so many flavours packed in international packings: 8
  9. 9. Amul Probiotic wellness ice cream is available in : 125ml/500ml+500ml free and 1.25 litrs in 5 flavours : Vanilla with chocolate sauce/Starwberry/chocolate/shahi Anjir and fresh litchi price ranging from Rs.15(125ml) to 110(1.25litrs). RESEARCH BRIEF 9
  10. 10. AMUL 40% HUL 30% VADILAL 20% OTHERS 10% MARKETSHARE Among the major players in this industry AMUL has a market share of around 40%,. Hindustan Unilever Ltd with an estimated market share of 30% represented mainly by Kwality Walls brand and lastly Vadilal is the player in the national market with 20% of the market share and 10% of the others brand like Mother Dairy, Arun Dairy and some local brands. Indian Ice Cream Market Industry Snapshot · Market Size - 800 Crores · Ice Cream market is growing at 10 to 12% · Ice creams traditionally are a low volume business Players Ice-cream Introduction The ice cream market growth picked up after de-reservation of the sector in 1997. Of the total size of Rs 15-16bn, around 30-32% is in the hands of organized sector valued at Rs 4.9bn, rest all is with the unorganized sector. Production area In rural areas, kulfis / ice creams made by small / cottage industry are popular. The market for organized sector is restricted to large metropolitan cities. In small towns and villages, there are thousands of small players who produce ice- creams / kulfis in their home backyard and cater to the 10
  11. 11. local market. Almost 40% of the ice creams sold in the country are consumed in the western region with Mumbai being the main market, followed by 30% in the north and 20% in the south. Growth promotional activities The Indian government adopted the policy of liberalization regarding the ice cream industry also and it is since then that this sector has shown an annual growth ranging from 15- 20% per annum for last 1- 2 year. Presently in 1999- 00 it is estimated at worth of Rs15- 16bn. This growth rate is expected to continue for another next 2- 3 years because of lower base. Types Indian Ice Cream market can be segmented in three different ways, namely on the basis of flavors; on the basis of stock keeping units / packaging and on the basis of consumer segments. On the basis of flavors the market today has a number of flavors like vanilla, strawberry, chocolate, mango, butterscotch a number of fruit flavours; dry fruit flavors traditional flavors like Kesar- Pista, Kaju- Draksh etc. The market is totally dominated by Vanilla, Strawberry and chocolate, which together account for more than 70% of the market followed by butterscotch and other fruit flavors. 1. Amul - Market Leader with share of 40% 2. HUL - Kwality Walls - 2nd biggest player 3. Mother Diary 4. Arun - Chennai Based Hatsun Agro Product 5. Metro Daily - Kolkata based 6. Aavin - Tamil Nadu based Recent Happenings 1. HUL's Moo (Nutritional Ice Cream) - targeted at Kids 2. As Mother Dairy has competency cold chain distribution as they have Safal brand (frozen peas, corn, juices and mixed vegetables) under their portfolio, they have expanded from Delhi to Bangalore, Hyderabad, Chennai, Punjab, Rajasthan, UP & Uttaranchal. Due to this and other brand 11
  12. 12. extensions in the pipeline, Mother Diary expects their turnover by 20% this year over their present size of Rs. 2800 Rs. Cr. 3. Aavin, the cooperative sector milk and dairy products marketer in Tamil Nadu, has launched a low sugar variant of ice creams in the market. According to an official press release, the ice cream `without added sugar' is ideal for diabetics and safe for children and mothers-to-be. This variant has just 80 calories and has 16 mg of sweetener against 8,000 mg of sugar in the traditional ice creams. The ice cream conforms to the US and domestic food regulations, the release said 4. GCMMF launched its pro-biotic ice creams that have live beneficial culture that confer beneficial health effects such as improving immunity and digestion and strengthening bones. It also introduced a sugar-free ice cream range and is planning a Web site on ice creams. There two ranges are - Amul Prolife and Amul Sugar free. According to Mr. R.S. Sodhi, GM Marketing, Amul, Amul hopes to build the pro-biotic range into a Rs 100- crore brand within the next two- three years. While Amul had earlier tested this market segment through the launch of an isabgol- enriched ice cream, this is company's first full-fledged attempt at capturing a good share of the pro- biotic enriched foods market in India. Both the brands are available in 125 ml (Rs 15), 500 ml and 1.25 litre (Rs 120) packs in five flavours, vanilla with chocolate sauce, strawberry, chocolate, shahi anjir and fresh litchi. On the retail front, it intends to hike its Amul parlours from 600 to 10,000 by 2010 5. Arun Ice Creams, the ice cream brand from Hatsun Agro Product Ltd, is launching a new range of ice cream outlets, Arun Ice Creams Unlimited. Hatsun Agro, which is the largest private dairy in India, plans to make available its range of dairy products at the conventional Arun ice cream outlets operated through franchisees. This network will also be expanded. The new range of outlets will sell ice cream by the scoop, `aggressively priced' at Rs 20 a scoop of 100 gm, Mr Chandramogan said. A feature of these parlours will be the wide selection of flavours, over 25 flavours with five new substituted for the existing ones each month to ensure more variety. The company is investing over Rs 15 lakh in each of these outlets. Few Brands/ Target Consumers 1. Youth Centric - Chills 2. Kids - Moo 3. Teenagers - Cornett 12
  13. 13. 4. Health Conscious - Amul Sugar free & ProLife This summer mother diary targeted children with the baseline — `Jagaye Andar ka Bandar' while it is luring adults with the message `Give In'. Interesting piece of information: Hawking is not allowed in Mumbai which makes 1/3rd of business for HLL. Rest is contributed by retail outlets Future of Ice Cream Market in India Ice Cream market will expand with increase in number of malls - HUL has been increasing their ice cream outlets - Swirl. Few years consumers use to go out for walk after dinner and use to buy ice creams from hawkers. But now consumer who often visit malls for entertainment prefer to buy ice creams during different times of the day as it is visible upfront and feel like spending Rs. 50 for that tasty chocolate swirl with cake and nuts. As marketers are understanding the different needs of consumers, be it health conscious people, kids, youngsters, young etc, and coming up with products specific for them... with portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore high probability of buying one more scoop of ice cream. Also with increasing wallet size and innovative modern retail formats, it has definately given a philip to the ice cream industry in India. MARKETING RESEARCH Marketing research plays an important role in the process of marketing. Starting with market component of the total marketing talks. It helps the firm to acquire a better understanding of the consumers, the competition and the marketing environment. 13
  14. 14. DEFINITION “Marketing research is a systematic gathering, recording and analysis marketing problem to facilitate decision making.” - Coundiff & Still. “Marketing research is a systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. - Phillip Kotler. MAIN STEPS INVOLVED IN MARKETING RESEARCH Defining the Marketing Problem to be tackled and identifying the market research problem involved in the task. (1) Define the problem and its objectives. (2) Identify the problem. (3) Determine the information needed. (4) Determine the sources of information. (5) Decide research methods. (6) Tabulate, Analyze and interpret the data. (7) Prepare research report. (8) Follow-up the study. (1) Define the problem and its objectives :- This includes an effective job in planning and designing a research project that will provide the needed information. It also includes the establishment of a general framework of major marketing elements such as the industry elements, competitive elements, marketing elements and company elements. (2) Identify the problem :- Identifying the problem involves getting acquainted with the company, its business, its products and market environment, advertising by means of library consultation and extensive interviewing of company’s officials. (3) Determining the specific Information needed :- In general the producer, the manufacturer, the wholesaler and the retailer try to find out four things namely :- 14
  15. 15. (1) What to sell (2) When to sell (3) Where to sell (4) How to sell (4) Determine the sources of information :- (a) Primary Data :- Primary datas are those which are gathered specially for the project at hand, directly – e.g. through questionnaires & interviews. Primary data sources include company salesman, middleman, consumers, buyers, trade association’s executives & other businessman & even competitors. (b) Secondary Data :- These are generally published sources, which have been collected originally for some other purpose. Source are internal company records, government publication, reports & publication, reports & journals, trade, professional and business associations publications & reports. (4) Decide Research methods for collecting data :- If it is found that the secondary data cannot be of much use, collection primary data become necessary. Three widely used methods of gathering primary data are A) Survey B) Observation C) Experimentation A) Survey Method :- In this method, information gathered directly from individual respondents,either through personal interviews or through mail questionnaires or telephone interviews. B) Observation Method :- The research data are gathered through observing and recording their actions in a marketing situation. This technique is highly accurate. It is rather an expensive technique. C) Experimental Method :- This method involves carrying out a small scale trial solution to a problem, while at the same time, attempting to control all factors relevant to the problem. The main assumption here is that the test conditions are essentially the same as those that will be 15
  16. 16. encountered later when conclusions derived from the experiment are applied to a broader marketing area. D) The Panel Research :- In this technique the same group of respondents is contacted for more then one occasion; and the information obtained to find out if there has been any in their taste demand or they want any special quality, color, size, packing in the product. a) Preparation of questionnaire b) Presetting of questionnaire c) Planning of the sample (5) Tabulate, Analysis and Interpret the Data :- The report must give/contain the following information:- a) The title of research b) The name of the organization for which it has been Conducted c) The objectives of research d) The methodology used e) Organization and the planning of the report f) A table of contents along with charts and diagrams used in the reports g) The main report containing the findings h) Conclusion arrived at end recommendations suggested i) Appendices (containing questionnaire / forms used sample design, instructions.) 2. RESEARCH OBJECTIVES & Related sub objectives  To know awareness of people towards Amul Prolife & Sugar free Icecream .  To know in which segment ice cream are mostly like/preferred.  To know which advertisement tool is mostly preferred by people. 16
  17. 17.  To know the preference of Amul Sugar free ice cream with comparison to other competitive brands.  To know the factors which affects consumer’s buying behaviour to purchase prolife & sugar free icecream.  Create awareness about the Probiotic icecream  To collect the detailed data by filling up the questionnaire from the APO’S/A class outlets or parlors  To collect the detailed data with respect to AMUL Outlets.  To collect information about the AMUL Prolife & Sugar free ice cream by different APO’S & A class outlets  To collect detailed information about the price, supply or any required improvement towards the AMUL Prolife & Sugar free ice cream.  To give suggestion provided by the outlets to the company for improvement of AMUL Prolife & Sugar free ice cream/Products . INTRODUCTION OF VADILAL The first ice-cream factory in the world was set up in the year 1851 by a vocational chief named Jacob Fussily. The first hot Fudge Sundae was served at Browns in Hollywood. Ice cream cone were an accidental innovation. During a St.Louis Exposition in 1904, when an Ice cream vendor ran out of bowls, his pastry-maker neighbor rolled in it crisp wafer. They called 17
  18. 18. this ‘Cornupopias’, and people instantly took to it. The duo might have not imagined that they were in fact pioneering a product sub-gern, thought. In India, one of the earliest Ice cream related anecdotes goes thus: a traveler once presented Emperor Amber crude of Ice cream (fruit juice sprinkled on Ice). The emperor liked it so much; he ordered that he be served the same every morning. It is said that gagantic blog of Ice had to be extricated from Kashmir and carted across the land for over a month, to Delhi. By the time it reached Delhi, it would melt down to small cup-full, and emperor could relish his cup of Ice Cream every morning. COMPANY PROFILE (A) Brand Name : Vadilal Industries Limited 18
  19. 19. (B) Type of organization : Public Ltd. (C) Establishment Year : 1970 (D) Office Address : Vadilal House, Shrimali Society, Nr. Navrangpura Rly. Crossing, Navrangpura, Ahmedabad – 380 009 (E) Factory Address : Dudheshwar Road, Ahmedabad (Gujarat) (F) Market Share : 65% (G) Parlors & Restaurant : 80 (H) Vadilal Ice-Cream : Village Pundhra, Tal. Mansa, Dist. Gandhinagar (Gujarat) (I) Competitor : Amul , Quality walls. (J) No. of Employees : 500 (K) Promoter : RAMCHANDRA R. GANDHI (L) M.D : RAJESH R. GANDHI DEVANSHU L. GANDHI (M) Web Site : HISTORY OF ORGANIZATION 19
  20. 20. Today, the name Vadilal conjures images of lip-smacking ice cream in a whole gamut of flavours. Vadilal spells quality, availability, variety and state-of-the-art machinery and equipment. It has, however, been a long journey for the group, which traces its origins way back to 1907, when a certain unassuming gentleman, by the name of Vadilal Gandhi, the great-grand father of Virendra R Gandhi, Rajesh R Gandhi and Devanshu L Gandhi, started a soda fountain. He passed on the business to his son, Ranchod Lal, who ran a one-man show, and, with a hand cranked machine, started a small retail outlet in 1926. Eventually, Ranchod Lal's sons, Ramchandra and Lakshman, inherited the business and they were instrumental in giving a new direction to the company. The duo imparted a new vision to the venture and infused a spirit of calculated risk-taking into the company. As a result, by the 1970s, the Vadilal Company had already evolved into a modern corporate entity. "In 1972-73, the company had 8-10 outlets in Ahmedabad. Gradually, we moved from the city to other parts of Gujarat. By 1985, the company moved towards neighbouring states like Rajasthan and Madhya Pradesh. But the expansion was undertaken very methodically and we spent five to six years in spreading our business and then consolidating it" says Shri Ramchandrabhai Gandhi (Chairman). MISSION STATEMENT “To provide products and services at an affordable price without compromising the quality,” says Shri Ramchandrabhai Gandhi 20
  21. 21. VISION STATEMENT “To become an Indian MNC (Multi National Company) in frozen foods”. ACHIVEMENTS FORM OF ORGANISATION There are different types of business organization. Their names and meaning is as follow: 1. SOLE PROPRIETORSHIP Sole proprietorship is also known as ‘one man businesses. It is a type of business unit where only one person is responsible for providing the capital, for bearing the risk of the enterprise and for the management of the business. 21
  22. 22. ORGINIZATIONA L CHART 2. PARTNERSHIP According to the partnership act 1932 partnership is a relation between person or two who have agreed to share the profit of the business carried on by all or any of them acting for all. 3. JOINT STOCK COMPANY It is a company which is controlled and managed by both private and public sector unit. Sometimes the private sector unit manages the public sector unit for improving the affiance of the PUS. 4. CO – OPERATIVE SOCIETY Co-operative society is a voluntary association of individuals. It is formed for the promotion of economic interest of its members in accordance with co-operative principles And at last we can know form all the form of organization that Vadilal is a JOINT STOCK company. ORGINIZATIONAL STRUCTURE 22
  23. 23. QUALITY ASSURANCE Pundhra Plant is ISO: 9001:2000 and HACCP Certified. The certification of this plant has been carried out by BVQI under the latest regulations of food safety system, September 2002. 23 G.M. FINANCEG.M. PERSONNELG.M. G.M. MANAGERASST. DY. MANAGERG.M. WORKS EXECUTIVES EXECUTIVEASST. MANAGERASST. MANAGER OFFICER, A/C, TYPIST SUPERVISOR EXECUTIVEOFFICE LABOUR CHAIRMAN M.D (Managing Director) CO-ORDINATOR MANAGER MATERIAL MANAGER Q&A and R&D
  24. 24. BVQI is a wholly owned subsidiary of Bureau VERITAS, a France-based multinational organization. The plant has recently received the Export Inspection Council of India, Ministry of Commerce and Industry, Government of India certification for exports which in itself is a benchmark for hygiene and quality. “We shall achive customer satisfaction by establishing and sustaining an effective quality management system” QUALITY OBJECTIVE • Ensure consistency in quality of product and services. • Improve upon individual and then perform by means of continuous training. NEED OF FINANCE In the business unit need of finance arises due to following reason. For the purpose of expansion. For the purpose of establishment. 24
  25. 25. For the purpose of renovation. For the purpose of diversification RESERVES AND SURPLUS Cash is the most important current assets for the operating of the business run on continuous basis for the smooth running of the company. There should be sufficient cash neither more is cr. Shortage will intercept the firm manufacturing operations while exclusive cash supply remain ideal. Therefore the cash and bank balance of the company are maintained at optimum level for this they can use the system of investment in reserve also. Cash is needed for the day to day expenses like purchase of raw material and giving salaries to the worker. TURN OVER OF THE COMPANY • Company has achieved sales turnover of Rs. 13,604.72 lacs as compared to sales turnover of Rs. 11,888.88 lacs achieved during the previous year ended on 31st March, 2007. 25
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  28. 28. Cash Flow of Vadilal Enterprises Particulars Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 12 mths 12 mths 12 mths 12 mths 12 mths Net Profit Before Tax 0.08 1.36 1.27 1.27 0.51 Net Cash From Operating Activities 11.16 6.21 -0.1 -0.13 3.31 Net Cash (used in)/from -8.53 -7.34 -3.87 1.11 -3.31Investing Activities Net Cash (used in)/from Financing Activities 0.59 1.16 3.73 -1.36 -0.23 Net (decrease)/increase In Cash and Cash Equivalents 3.21 0.03 -0.24 -0.39 -0.24 Opening Cash & Cash Equivalents 0.35 0.31 0.56 0.89 0.98 Closing Cash & Cash Equivalents 3.56 0.35 0.31 0.51 0.74 28
  29. 29. DISTRIBUTION CHANNEL • COMPETATION : The company operates in an extremely competitive market and some of its brands compete with the brand of large multinational companies. In past company was company was facing Amul especially on pricing front. But now company is successfully overcome from the competition further local and regional brand are increasing day by day which is also eating away some of the market. The company faces the rest of reach market share on account of competition through advertising trade promotion, price competition and other competition measure. Salesmen Retailer Dealer 29 Company Distributor Customer
  30. 30. This risk factor is common to all companies in the industry and not specific to Vadilal owe a period of time Vadilal has fought successfully fought against many brands. • BRANDING : Branding is the process of assigning a distinctive brand name or symbol to a product in order to differentiate it from the competitive product. Branded foods enjoy a wider market. Vadilal Enterprise Limited has strong consumer brand awareness. The company chose “Vadilal” as a brand for dedicating the owner father Mr.Ramchandra Vadilal Gandhi. Vadilal Enterprise Limited has launched a new brand “Vadilal Surbhi” for its subsidiary product i.e. milk. It also has another brand name “Vadilal Lite”for the product, which were useful for diabeties & heart Patient. 30
  31. 31. CONCLUSION As we know that Amul is very big organization and market leader in dairy products. It has maximum market share in Milk, Butter and Cheese, which are its main/core products. As we know Amul is a co-operative organisaion but icecream industry is a profitable industry we can’t ignore it. With the help of research, company can find out its week points in Prolife icecream product and can increase its market share through rectify mistakes. People have believed in Amul’s product and they will accept its icecream also if effective actions were taken. The industrial visit to Vadilal industry was a wonder full visit from our college. My visit was about how an organization is run successfully. The visit was highly educational and helped one to give me a depth understanding of marketing and finance management cared out of Vadilal. I came to know the process used for manufacturing of Ice-Cream and different types of problem incurred in it. I understood the difficulties that is faced by the management of modern company and also studies the way they save the difficulties and problems. Vadilal is a wonderful company. It is developed company with the registered office as well as factory at Gandhinagar (Gujarat). Vadilal has capereted the market of the ice-cream. It will be leader in ice-cream after few years if it continues to process in this way as it is doing now. We can tell that industry is an ideal industry and after eating its ice-cream anybody can tell that is 31
  32. 32. BIBLIGROPHY WEBSITES: • • • • • • • Research Methodology. ( Harper W.Boyd, C. R. Kothari ) 32
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