Shampa flour mills ltd. report


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Shampa flour mills ltd. report

  1. 1. A Brief Tale of SuccessIt was Mr. Fazlur Rahman who believed that he could change his lot throughhis hardship and determination. Out of his willingness in the year of 1972 hestarted to walk a path of fortune. In the post war period when the economyand social structure of Bangladesh was fragile, ―City Oil Mills‖ was formed byMr. Fazlur Rahman. It was just another day in the independent Bangladeshfor most of the people, but 6th February, 1972 was the beginning of one ofthe largest group companies of Bangladesh ―The City Group‖. Initially themission of the company was to produce mustard oil for the local marketconsumption. But the up roaring demand of the product soon brought thecompany in the competitive market. ―City Vegetable Oil Mills‖ wasestablished at Rupshi, on the outskirts of Dhaka. This effort evidenced anaccelerated growth of City Group and the company was soon found to opentwo more sister concerns by the year 1994 named ―Hasan Vegetable Oil MillsLiimited‖ and ―City Fibers Limited‖.Within this time period the company brought out their first brand named―TEER‖. The flagship product for this brand was ― Soyabean Oil‖. Thelater part is the success stories of the corporation. Under the brand name ofTEER, different products are produced in different sister concerns of the―City Group‖.In the year of 2009 City Group founded the Shampa Flour Mills Ltd, thelargest flour mill in the history of our country. Our report is solely based onShampa Flour Mills Ltd. and the products produced here. 1
  2. 2. About Shampa Flour Mills Ltd.The country‘s biggest-ever flour mill was set to start production at the end ofApril, 2009. Shampa Flour Mills Ltd. was a Tk 250-crore project of the CityGroup to produce premium grade and packed flour and semolina (suji). Thefactory was established at Rupshi under Rupganj upazila in Narayanganj.Shampa Flour Mills Ltd. is located on the bank of the River Shitalakhya.The main unit occupies more than two acres of land while the warehouseand silos occupy few acres of the 70-acre City Industrial Estate at Rupshi. Ithas a structural installation of seven-storey industrial unit.City Group used to operate the country‘s biggest flour unit — Hasan Flourthat produced 200 tons of flour and semolina per day. According to thegroup chairman, Fazlur Rahman, they were not able to meet the marketdemand. And this situation led them to set up another industry with aproduction capacity of 550 tons per day.Shampa Flour Mills Ltd. brought the plant from Switzerland‘sthat delivers the world‘s most sophisticated and expensive technologies. Thecoordinators of the installations of Shampa Flour Mills Ltd. were eightEuropean engineers. The plant is designed to be automated that guides themachine to clean wheat in four steps before producing flour and semolinaand filter unwanted particle in seven steps up to packing of the product.Food-grade plastics for making plant‘s bed and food-grade paint on the wallshave been used in the Shampa Flour Mills Ltd. as per the guideline of to ensure quality. Buhler technology obliges City to invest doublein compare to Indian or Chinese plants but Fazlur Rahman was sure ofkeeping the prices of his products competitive and he did it too. 2
  3. 3. A top view of the massive structure of City Industrial Estate including Shampa Flour Mills Ltd. The Machineries bought from Swiss Company 3
  4. 4. The Key MilestonesCity Group of Industries has 22 sister concerns right now. The starting ofany of those was a milestone for the group.S# Company Products Starting1 City Oil Mills Mustard Oil 19722 City Rerolling Mills MS Rod 19853 City Vegetable Oil Mills Ltd Refined Soyabean & Palm Olein June 19904 City Fibers Limited P.P. Oven Bag October 19925 Hasan Plastic Industries Ltd HDPE Containers September 19946 Hasan Flour Mills Ltd Atta, Flour & Semolina December 19957 Hasan Printing & Packaging Paper Carton September 1999 Industries Ltd8 Hasan Containers Ltd Tin Containers September 19999 City PET Industries Ltd PET Bottle & Mineral Water February 200110 Shampa Oil Mills Ltd Mustard Oil April 200111 Farzana Oil Refineries Ltd Refined Soyabean & Palm Olein April 200112 City Dal Mills Ltd Beans June 200113 Grainmark Indenting 200114 Rahman Synthetics Limeted P.P. Oven Bag August 200115 Deepa Food Products Ltd Refined Soyabean & Palm Olein October 200316 VOTT Oil Refineries Ltd Refined Soyabean & Palm Olein February 200417 City Hair Oil Ltd Refined Coconut Oil May 200418 City Feed Products Ltd Poultry & Fish Feed November 200419 City Seed Crushing Industries Ltd Soyameal & Rapeseed Cake February 200520 City Salt Industries Ltd Salt March 200521 City Sugar Industries Ltd Sugar March 200622 Shampa Flour Mills Ltd Atta, Flour & Semolina April 2009City Group of Industries launched four brands named , , and . is one of the significant milestones of City Group. This brand hascaptivated the hearts and minds of the people. 4
  5. 5. ManagementIt might sound that the management of Shampa Flour Mills Ltd. isconsisted of very few number of employees. Shampa Flour Mills Ltd. is anautomated factory. It has only one manager to watch out the wholeoperation. Several employees are also there for the maintenance of themassive structure. The machines are run by European professionals. Theoverall framework is taken care of by the management of The City Group. Market ShareShampa Flour Mills Ltd. produces products only. So, in this sectionwe can prove this mill‘s point by telling ‘s market share. From the verybeginning of the birth of products, it has enthralled the hearts ofmillions of consumers. It‘s hard to find a person without having theknowledge about the products. products are popular in the higherincome group. They serve the best products to their customers andconsumers. In the consumer market, has around 40% of the marketshare. In the customer market, products are far ahead of itscompetitors. Some of the competitors of the consumer products of areeventually customers of City Group. From this point of view we canunderstand that products have a larger share in its related productmarket. Mission The mission of Shampa Flour Mills Ltd. is same as that of the CITY Group. The mission statement of the company is ―To provide HYGIENE, HEALTH & EXCELLENCE in food consumables for the consumers at an affordable price and raise awareness in the Local & International market‖ 5
  6. 6. City Group cares a great deal about the health concern of their consumers.This is what enables them to maintain the highest quality of hygiene andhealth standards while marketing their products, in order to meet thecommon goal - Excellence!The Principal Objectives of the company can be further broken down into 5parts: Passion for Excellence Business Integrity Pioneering Commitment Development VisionFor more than three decades City Group has been serving the mass andpremium market with their quality product. They always look forward into allthe aspects of providing quality food and health consumables for theconsumers. From the initial days till now they strive always to achievecustomer satisfaction by providing quality consumables at rational price.Achieving a satisfying market share in the local market, they are presentlyexporting in the Middle East and some other places. Their vision is to servethe whole world as an International Brand.The entire painstaking process has started to take its shape and within a fewyears the corporation looks forward to become one of the best corporationsin the country.Mr. Fazlur Rahman, the industrialist vows to uphold his promise on qualityflour at affordable prices as he feels, ‗A nation needs nutritious food ataffordable prices and without that the intellectual level and productivitycannot be increased.‘ 6
  7. 7. StrengthAccording to the spokesperson of the City Group, the main strength of theShampa Flour Mills Ltd. is its huge establishment. Shampa Flour MillsLtd. is one of the 10 largest mills of its kind in the world. It is the onlycorporation which can refine the raw materials on its own thoroughly. Afterthat, they can produce their brand products. Their competitors lack thisadvantage because of their fewer resources.WeaknessAs every company has weakness, the City Group isn‘t an exception either.But regarding Shampa Flour Mills Ltd. they have no weakness. There hasbeen some lacking in the whole company, the City Group. It wasunsuccessful to continue some of their products under the brand .Consumer pack of coconut oil was discontinued; because they wereunable to position their product in the mind of users. Even though they havethe bulk and institutional pack of coconut oil. The discontinuation of saltcan also be regarded as a weakness of this corporation.OpportunitiesAny change in the market like the unavailability of the goods of thecompetitors brings out a way of opportunity to the products. Thechange in pricing policy of the competitors also brings prospect to theproducts of Shampa Flour Mills Ltd.ThreatsOnly threats products face is the unusual problem raised in thecountries where from city group import their raw materials. Most of the rawmaterials are brought from Brazil, Canada, Australia, Malaysia and India. So,any economical crises in these countries hamper the business strategies ofShampa Flour Mills Ltd. 7
  8. 8. CompetitorsThere a plentiful numbers of flour mills in our country. But none can betaken as a competitor of Shampa Flour Mills Ltd. because no other flourmill would show the courage to compete with the king of the dynasty. Butthere are some competitors of products which are produced in ShampaFlour Mills Ltd. Some of those are FRESH, IFAD, ACI, PUSTI and FAUJI. The Marketing MixThe most important thing to run a business farm is the proper marketingmix. The marketing mix is referred to the product, price, place andpromotion. Without these 4Ps, in no way a company can survive. Themarketing mix of Shampa Flour Mills Ltd. is pretty simple to grasp. Itdoesn‘t follow any extra ordinary marketing policy. The marketing of the products are broadly based on the after sales satisfaction of theconsumers. They serve the best product to their consumers. Once aconsumer buys their products; they don‘t turn their back on the company.So, the City Group doesn‘t need to generate lavish promotional strategy oranything like that. In the following sections the marketing mix for ShampaFlour Mills Ltd. will be thoroughly discussed.ProductSeveral products from wheat are produced here. As Shampa Flour MillsLtd. is the largest one, they can finish up all the refining, packaging in oneplace.The products produced here are Atta, Maida, Suji and Poultry Feed. All of theproducts are sold under the brand name of . The daily productioncapacity of the mill is 550 metric tons. They produce consumer pack,institutional pack and bulk pack. Several food packaging industries are alsotheir industrial customers. 8
  9. 9. Only 10% of the wheat is collected from our own country. Most of the rawmaterials are imported from different countries around the world. Highquality of products is ensured here. Canada is the largest seller of ShampaFlour Mills Ltd. regarding wheat. The other countries where from ShampaFlour Mills Ltd. imports wheat are Russia and Australia.The Atta, Maida and Suji are produced in a gigantic factory. There arearound six stages to produce high quality atta, maida and suji.The premier brand of City Group – Wheat (locally known as "Atta") speaksfor itself. The overwhelming demand of it is enough to satisfy the consumersthat ― ATTA‖ is a true symbol of quality. The local market has seen theconsumption of many branded wheat based products, but Atta makesits mark itself. One can easily differentiate amongst the quality easily.Manufactured from one of the best quality of wheat, Atta is produced in ahighly modernized environment meeting strict safety standard. Theextracted wheat and other ingredients are crushed using the popular machine of Switzerland to ensure 100% purity and fineness.Yet another derivative of wheat, Semolina, commonly known as Suji, is alsoa key ingredient for the luscious sweets of Bangladesh. By importing wheat,which is mainly responsible for producing Semolina, Shampa Flour MillsLtd. crushes it along with other ingredients, in order to produce Semolina.The company ethics, beliefs and ideals are founded around the better healthof our nation through good nutrition and products, which are grown tosupport the future of our planet. Suji meets the highest quality available and the products are grownoriginally. The products are packed and sealed with maximum freshness. products represent value for money. 9
  10. 10. The company has already introduced Bar Codes to their entire range ofconsumables as plan of their renewed quest to achieve excellence in allaspects. According to them the bar codes will help them strengthening thefeatures of their entire range of products greatly.All the labels/packs of the brands already contain the information regardingmanufacturing date, expiry date, batch number and MRP. The company isgoing to include the ingredients, specification & nutritional facts on all thelabels very soon.Now let‘s talk about the products in detail. According to the Shampa FlourMills Ltd. they produce goods for all types of buyer. They have consumerpacks. They also have the institutional and the bulk packs.Some products with different sizes are shown below.ATTA SpecificationMoisture Percent by mass 10 MaxTotal ash (on dry basis), percent by mass 2 MaxGluten (on dry basis), percent by mass 7 MaxConsumer packs of Atta 2kg 1kg 10
  11. 11. Maida SpecificationsMoisture, percent by mass 13.0 maxTotal ash (on dry basis), percent by mass 1.0 maxGluten (on dry basis), percent by mass 10.0 minConsumer Packs of Maida 2kg 1kgSuji SpecificationsMoisture, percent by mass 13.0 maxTotal ash (on dry basis), percent by mass 1.0 maxGluten (on dry basis), percent by mass 7.50 minConsumer packs of Suji 500gm 250gm 11
  12. 12. PriceThe prices of Atta, Maida and Suji are not very high. Consumer of a lowerincome group can also afford the products of Shampa Flour Mills Ltd. Theprices are differentiated with the refining, production and competition.According to the spokesperson of City Group, their products are value formoney. Their prices are relatively lower than their competitor in the aspectof quality.They keep themselves updated about the prices of the competitors. If theyget to know the change of prices of their competitor, they spontaneouslytake action for this.Some other reasons are also kept into mind before pricing. The economicconditions of the countries from where Shampa Flour Mills Ltd. importsthe raw materials largely influence the pricing strategies.In our country, it‘s very hard to maintain a fixed price in the food relatedindustry. The fluctuating condition of our economy also plays a major role inthe pricing. The price of products may vary in different places. But, CityGroup keeps trying on keeping the price in the range of their customers andrelatively lower than their competitors.PlaceThe distribution channel of products is very strong. One can findproducts everywhere in our country. They have around 2000+ distributorsall over our country. There are more than 60 distributing regions for theproducts. For every regional office there is one Regional Manager, severalZonal Officers and a good numbers of Sales Representatives.Few years back they used to follow the DO system. DO system is the shortform of Delivery on Order. In this system the distributor could buy products 12
  13. 13. having the opportunity of taking delivery of the products upon their wish.Most of the time they waited until the price would rise. In that case thedistributors could earn a lot profit investing the same amount a little timeearlier. They could use the firm as their warehouse. But City Group hasrecently changed their distribution policy. They don‘t follow the DO systemanymore. Now they follow the Purchase Order policy. Now the distributorshave to take the products on the time of purchase. They don‘t get extrabenefit from the purchases what they used to execute.The city group, owner of the Shampa Flour Mills Ltd. has a huge numberof transportation vehicles. They transport their raw materials and productsthrough their own transports. They own two large Vessels to carry theimported raw materials. From the Chittagong port they bring their rawWheat through their Burges. The City Group owns around 100 heavy dutytrucks and 50 covered van, which are used for the Shampa Flour Mills Ltd.also.Regarding the products of atta, maida and suji, the firm has anadvantage. They use the pull sale strategy. They don‘t need to push theirdistributor thoroughly. Even though, they have their marketing departmentto train up their sells representatives. To motivate the distributors and retailsellers, this farm provides several incentives. For instance, the common oneis the special price reduction for the distributors after purchasing bulkamount.PromotionA vast promotion is not needed regarding products. Rarely do theyshow their advertisements on television. Only during the Eid festival the CityGroup promotes their products frequently on TV. They use print media forrare occasions. Unlike the competitors of them they don‘t even put large 13
  14. 14. billboards. They use massive promotional strategy only when a new productis being launched.They are generous when they are asked to sponsor any educationalinitiatives. This also helps them to promote their product. The Deputy BrandManager (Marketing & sales) quoted that they sponsor the sports relatedoccasions of different educational institutions frequently.To promote the company, City Group makes brochures of its prospectiveSBU. These are mostly used for the corporate clients. Corporate videosmade by advertising farm are also used to promote the corporationregarding the overseas clients. They take part in trade fairs as a promotionalcampaign. Success FactorsThe success factor for the Shampa Flour Mills Ltd. is the goodwill of thecity Group. City Group has always been loyal to its customers. Mr. FazlurRahman, Chairman of the Group says, ―The factory is a public welfare entity.If someone serves the public and the consumers with good quality products,the consumers will, in return, pay the due price.‖ And they have lived up totheir promise. This unique selling proposition has led them to the summit ofsuccess. 14
  15. 15. End NoteA vision can take a person to his desired place. Shampa Flour Mills Ltd. is anexample of that. One proper idea with proper implementation can make onereally successful; the chairman of city group and industries makes a perfectexample for us. After visiting the organization we‘ve noticed that how tomanage and organize a huge company. Although when they started, it wasnot so massive, but now it is. The manpower of city group is the heart of thiscompany, their hard labor and determination towards their work makes itsuch a triumphant company. In our point of view we‘ve learned thateffective manpower and proper maintenance are the key things to achieveaccomplishment. Though motivation is also needed for the employees andcity group is providing that also. Moreover we have learned so much aboutthe lifecycle of a company while doing this project. Special thanks goes toMr. Rubaiet Ahmed who cooperated with us thoroughly. We deliberatelythank our instructor for making us doing the report, which will help ourpractical life in near future. 15
  16. 16. Acknowldgement Brochures of City GroupCorporate video 16