Haldiram's is a major Indian snacks manufacturer based in Nagpur, India. It has manufacturing plants in several Indian cities. The company produces over 100 snack products including namkeens, sweets, papads, and frozen foods. Haldiram's has global distribution with exports to countries worldwide. It has a robust distribution network within India consisting of carrying and forwarding agents, distributors, and retailers. Haldiram's places emphasis on product quality and has received several certifications and awards for its food products.

1. Operations Management in Haldiram’s
By Nemish Kanwar 2012A4PS305P
Prepared in Partial Fulfillment
Of
Production Plan and Control
ME F412
BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

2. Table of Contents
Table of Figures ......................................................................................................................... 2
Introduction .............................................................................................................................. 3
Project Methodology ................................................................................................................ 3
Background ............................................................................................................................... 4
Company’s Profile ..................................................................................................................... 5
Quality Certifications ................................................................................................................ 6
Awards ................................................................................................................................... 6
Global Presence ........................................................................................................................ 7
Products .................................................................................................................................... 7
QUALITY POLICY ........................................................................................................................ 9
Plant Locations ........................................................................................................................ 10
Place ........................................................................................................................................ 10
Distribution Channel Structure ........................................................................................... 11
Channel Members ................................................................................................................... 13
Functions of Channel Members .......................................................................................... 13
Selection of Channel Members ........................................................................................... 13
Order Processing ..................................................................................................................... 14 1

3. Physical Movements ............................................................................................................... 14
Shelf Placement ...................................................................................................................... 14
Resources ................................................................................................................................ 16
Table of Figures
Figure 1: Quality Certification ................................................................................................... 6
Figure 2: Global Presence ......................................................................................................... 7
Figure 3: Distribution Channel Structure ................................................................................ 11
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4. Introduction
Haldiram's is a major Indian sweets and snacks manufacturer based in Nagpur, Maharashtra, India. The company has manufacturing plants in Nagpur, New Delhi, Kolkata, and Bikaner. Haldiram's has its own retail chain stores and a range of restaurants in Nagpur and Delhi. In contemporary times, Haldiram's products are exported to several countries worldwide, including Sri Lanka, United Kingdom, United States, Canada, United Arab Emirates, Australia, New Zealand, Japan, Thailand and others
The compilation of data collected under the topics that were covered in the course Production Plan and Control is the final section of this report.
I would like to express my gratitude to Mr. Srinivas Kota for providing the opportunity and valuable inputs that led to completion of this project.
Project Methodology
• Literary Survey
• Compilation of data from web resources
• Study of related topics from textbook
• Establish relationship between data collected & the course
• Prepare final report and presentation 3

5. Background
Haldiram's has its roots established in 1937 in the form of a small retail Sweet & Namkeen shop in Bikaner, Rajasthan, a small but significant town in the Thar Desert. Shri Shivkisan Agrawal, the founder of Haldiram's always cherished the dream of building an empire, manufacture traditional sweets/namkeens, leave a mark on every occasion and get close to the heart of the common man.
Haldiram’s offers a wide range of products to its customers. The product range includes namkeens, sweets sharbats, bakery items, dairy products, chips, pappad and ice creams. However namkeens remain the main area of focus for the group as it contributes close to 60% of its total revenues. By specializing in the manufacturing in the Namkeen market the company has created a niche market. The raw materials used to prepare namkeens are of best of quality and are sourced from all over India.
The food industry in India is forever changing to suit their consumers’ palate, preference and pocket. All the players in the industry thus, have to constantly adapt to the ever-changing trends and invent and re-invent themselves to stay in the league. Haldiram’s competes on the basis of numerous factors including brand recognition due to distinct packaging, product quality, traditional taste and authentic Indian flavor. 4

6. Company’s Profile
Name
Haldiram's Food International Limited
Company’s logo
Address
'Haldiram House', Plot No. 145/146, Old Pardi Naka,
Bhandara Road
City
Nagpur
State
Maharashtra
PIN Code
440 008
Contact
0712 268 1191
Website
http://www.haldirams.com
Products
• Namkeens
• Sweets
• Papads
• Halke Fulke
• Banana Chips
• Taka Tak
• Frozen Foods
• Drinks
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7. Quality Certifications
Haldiram’s has following Quality Certifications
Figure 1: Quality Certification
•Haldiram’s bagged the prestigious INTERNATIONAL AWARD FOR FOOD & BEVERAGES awarded by Trade Leaders Club in Barcelona, Spain in 1994.
•The Group has also to its credit KASHALKAR MEMORAIL AWARD presented by All India Food Preservers Association (Regd.) in 1996 at its Golden Jubilee Celebration for manufacturing the best quality food products.
•BRAND EQUITY AWARD 1998 was awarded by Progress Harmony Development Chamber of Commerce & Industry in recognition of creating successful Indian Brand ‘HALDIRAM’.
•APEDA EXPORT AWARD 2001-2002, awarded by Agricultural & Processed Food Products Export Development Authority for the outstanding contribution to the promotion of Agricultural & Processed Food Products during the year 2001-2002.
•MERA DELHI AWARD – 2004 for the exemplary contribution in the field of export. 6

8. Global Presence
Figure 2: Global Presence
Products
Haldiram's has over 100 products. Its products include frozen foods such as frozen meals, ice cream, and kulfi, namkeen, sweets, cookies, crackers, sherbet, papad, savories, chips and other snacks. Haldiram's also produces fruit-flavored beverages and dairy products. The company also produces ready-to-eat food since 2010. In the 1990s, the production potato- based food was enabled by the importation of machinery from the United States designed for these purposes.
Haldiram's products are marketed at various retail locations such as bakeries and confectionery stores, among others, and also on various commercial websites. The pricing of the company's products is typically inexpensive compared to similar products made by other companies. Prior and up to August 2003 in the United States market, the company's products 7

9. were limited to potato chips. The company's products are carried by some Indian supermarkets in the U.S. In the U.S., Haldiram’s products are popular with South Asian American. 8

10. QUALITY POLICY
We at HALDIRAM FOODS INTERNATIONAL PRIVATE LTD. are committed to manufacture & Supply a variety of Sweets (Sweetmeats), Namkeens (Savories), Papad, Pasta, 2D & 3-D Snacks (Extruded Foods), baked products, Milk & Milk Products, Frozen Foods to the complete satisfaction of our domestic & International Customers with regards to quality & food safety.
We shall strive to provide world class quality products by
• Utilizing hygienic, Safe & premium quality ingredients & materials.
• Adhering to good manufacturing & hygienic practices.
We are committed to continually improve all our activities to enhance customer satisfaction, organizational performance and market leadership.
We shall comply with statutory, regulatory requirements and all our actions would be planned and executed to fulfill this policy consistently through the dedicated involvement of all employees.
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11. Plant Locations
• Presently, they have 4 plants in and around Delhi.
• Production capacity of these plants on daily basis is as following:
o 50 tons of Namkeens,
o 20 tons of chips and other fun foods,
o 5 tons of tinned sweets and soan papadi.
• Another two plants are under construction to increase the capacity to fulfill the rising export demands.
• Regular laboratory checks to ensure quality standards being met
Place
The Haldiram’s products are distributed all over the country and outside country also. Haldiram’s is successfully exporting its products to many foreign countries
• Haldiram’s has developed a strong distribution network to ensure the widest possible reach for its products in India as well as overseas. From the manufacturing unit, the company’s finished goods are passed on to the carrying & forward (C&F) agent. C&F agents pass on the products to distributors, who ship them to retail outlets. While the Delhi unit of Haldiram’s has 25 C&F agents and 700 distributors in India, the Nagpur unit has 25 C&F agents and 375 distributors. Haldiram’s also has 35 sole distributors in the international market. The Delhi and Nagpur units together cater to 0.6 million retail outlets in India. 10

12. • C&F agents receive a commission of around 5% while distributors earn margins ranging from 8% to 10%. The retail outlets earn margins from 14% to 30%. At retail outlet level, margins vary according to the weight of packs sold. Retailers earn more margins ranging from 25% to 30% by selling 30gms pouches (priced at Rs.5) compared to the packs of higher weights.
• Apart from the exclusive showrooms owned by Haldiram’s, the company offers its products through retail outlets such as supermarkets, sweet shops, provision stores, bakeries and ice- cream parlors. The products are also available in public places such as railway stations and bus stations that account for a sizeable amount of its sales.
• Haldiram’s products enjoy phenomenal goodwill and stockiest compete with each other to stock its products. Moreover sweet shops and bakeries stock Haldiram’s products despite the fact that the company’s products compete with their own products.
Figure 3: Distribution Channel Structure
 At Haldiram, they have defined their distribution network with respect to the weight and price of their various products.
Factory
Carrying and Forwarding Agents C&F
Distributers
Retail Outlets
Consumers 11

13.  This is because they have defined their retail outlets in terms of the kind of product they keep. For e.g., a 10 gm bhujiya packet is generally opted by the “paan wala’s” and very small retailers. Thus, they have a different distribution channel.
 Similarly, a parallel channel of distributor is for the “kirana stores” in various colonies and localities where our middle class housewife visits who prefers the less than ½ kg packets but more than the small chillar of 10gms. This segment of consumers is supplied through a different set of distributors who stock the 200gm and 400gm packets.
 Thirdly, the big modern trade stores like Spencer's, Vishal Mega Mart, Reliance Fresh, Subhiksha etc., generally prefer keeping the 500 gm and 1 kg packets. They have assigned exclusive distributors for them.
 Fourthly, for army canteens, or BSF, CRPF canteens, there is a separate channel of distribution followed.
 Since, the price at which the products are sold to these canteens are very low, goods are supplied through the exclusive CSD, Company Sales Depots.
 These depots are located near army cants, like one in Delhi near Palam.
 The company has various CSD all throughout the northern and north-eastern India covering as far as Nagaland and Jammu & Kashmir.
• The C&FA are used for distribution of the product outside Delhi, NCR.
• The C&F agents work on Freight paid basis till their warehouse.
• If the Warehouse is either on the first floor or the basement, then the labor charges are born by the agent and not the company.
• Within Delhi, the Distributors are located by dissecting the city into four zones north, east, south, and west Delhi.
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14. • Profit Margins within the distribution channel is as following:
 4% commission to the C&F (consignee and forwarding) agent,
 7% margin to the distributor and
 15 to 20% margin to the retailer.
• In case of Army Canteens, a fixed price policy is followed this can be revised once in three years as per govt. regulations.
Channel Members
• The main functions of different channel members are to supply goods, to achieve targets and to increase sales.
• One of the main functions of C&F agents is to achieve the targets assigned to them. They are responsible for all the activities of their areas.
Channels members are selected if the following facilities are available: -
• Warehouse Facilities
• Experience sale persons.
• Van, truck, three-wheelers for transportation.
• Registered office.
• Proper computer facility for maintaining accounts.
• Financially strong 13

15. Order Processing
• Sales persons of C&F agents and distributors go to the retailers of their areas and bring the order daily. Then, they give order in the Corporate Office of Haldiram’s in Mathura road to the general manager. From corporate office general manager gives order in the factory. (Noida/Gurgaon/Mathura Road)
• As the order is ready to deliver and on confirming from the corporate office, the goods are delivered in the trucks.
• Orders within Delhi and the places near Delhi (like Meerut) are delivered within 24 hours.
• Orders outside Delhi are delivered according to the distance. It takes from 24 hours to 72 hours.
• Every distributor and C&F agent has a fixed day in a week to give an order.
• Haldiram’s has its own warehouse, which is managed by its own staff.
Physical Movements
The order of Haldiram’s is delivered by truck. Haldiram’s pays the expenses for transportation of the goods.
Shelf Placement
• Shelf placement is an important issue in today’s modern trade stores.
• Though Haldiram can define the shelf space they would prefer at these outlets, their policy is to let the retailer decide it.
• This is mainly due to the following two reasons:
 Firstly, such a demand does not come without a price.
Retailers
C&F
Corporate Office
Factory 14

16.  Secondly, it is believed at Haldiram that their product has the right customer pull so in any case the retailers prefer to keep its product at visible places.
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17. Resources
• Operations Management by Russell and Taylor
• http://www.haldirams.com
• A PROJECT REPORT ON MARKETING RESEARCH AND SALES & DISTRIBUTION OF HALDIRAM’S – by Ashwani Kumar (2014)
• MARKETING STRATEGY OF HALDIRAM’S- by Apoorva Saxena 16