Mohandas Hargobinda S
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The document summarizes information about the bidi industry in India and a major bidi manufacturing company. It notes that over 100 million people smoke bidi in rural India, bidi is the least taxed tobacco product, and production is largely unorganized. The company profile discusses the company's strong retail network across several states, annual turnover of Rs. 470 crores, and export markets. It lists several bidi brands and poses questions about diversifying business lines, management changes, distribution network strategy, and becoming a distributor for other brands.
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Patanjali Ayurved Limited is an Indian FMCG company that manufactures herbal and Ayurvedic products. It has large manufacturing facilities and state-of-the-art laboratories. Patanjali products are available in around 10 countries and the company aims to expand further. Patanjali's revenues have grown significantly in recent years and some analysts predict it could become one of the top 5 FMCG companies in India. The company utilizes promotional activities and penetrative pricing to target both rural and urban consumers.
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Marico Industries Limited had a successful fiscal year 2005, with turnover crossing Rs. 1000 crore and profit up 19%. Domestic brands like Parachute coconut oil and hair care products grew in volume. New products also performed well. The focus on high margin products increased their portfolio to 71% of total turnover. Internationally, business grew 29% and Kaya skin clinics expanded to 34 clinics. While continuing investment, Kaya is expected to contribute strong future growth. Marico achieved profitable growth through focus on consumers and innovation.
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Mohandas Hargobinda S
- 1. Mohandas Hargovinddas Prepared by Amol Shanware Tanmay Vora Sahil Lakdawala Manogna Marathi Jasmine Narang Rushabh Gala Sonal Rajapurkar Bhakti Rohra
- 2. The Bidi Industry in India Over 100 million people smoke bidi in the rural India; Bidi is the least taxed tobacco product in India; Unorganized and non-branded production; Employs more than 10 million workers; Almost a million tribals in the states of Madhya Pradesh and Orissa depend upon plucking tendu leaves, which is used for rolling bidis; A highly decentralized system on manufacturing and distribution of bidis; More than 800 billion bidis sold in India each year compared with 100 billion cigarettes sold annually.
- 3. Company Profile Bidi Manufacturer along with manufacture of Masalas, tea, oil, sanitary napkins, education. Strong retail network of the group in MP/ SouthUP/ Bihar/ Chandigarh/Orissa/Maharashtra (Vidarbha)/ Gujarat/ J&K/ Rajasthan/HP/Uttaranchal/ Karnataka, Haryana 4.8 Lakh distribution outlets (panwaala or big store) Turnover as on March 2009 - Rs. 470 crores Permanent staff – 1.2 Lakh Contract and temporary employees - 4000 Exports to Australia, Canada, Switzerland, U.S.A., etc.
- 4. Bidi Brands Pahelwan Sher No.7 Special Sher Special Pahelwan 201 Raja Sher Super Sher
- 5. Do the divergent/diversification verticals make sense? Should some be dropped? If so why? Sanitary Napkin to be discontinued: - No female involvement in the business; - Understanding of the market could be a mismatch. Manufacture Papads, Pickle and Pan Masala: - Ingredients are easily available; - Company already is established in the food business, so relating to the brand is easier for customers
- 6. What kind of people changes both in terms of staff and owners as well as management should the organization make? Change in Senior Management: - Professionalism in the functioning of the organization; - More qualified staff on board to help give the household business a new image. Hire a Web designer to update their website Hire a management consultant to help in general administration and strategy implementation. Hire a qualified team for marketing their products internationally.
- 7. Should they increase or alternatively reduce or alternatively maintain their footprints? (reduce or increase or maintain the dist. outlets (territories they are servicing)? No, should not increase or decrease Maintain & manage distribution network as it is an asset to have such a wide network and they can help other brands penetrate through their network. Hence , they should not just restrict themselves to their private label, but render distribution services to other FMCG brands as well.
- 8. Should they become distributors of accepted brands or should they follow the private label route? If so Why? Should become distributors of accepted brands Maintain & manage distribution network as it is an asset to have such a wide network and they can help other brands penetrate through their network. Eg. Distribition for HUL.
- 9. Thank You
Editor's Notes
- There is a highly decentralized system on manufacturing and distribution of bidis. There are thousands of bidis factories and no reliable data on their production or consumption