MITCHELL'S FRUIT FARM ANALYSIS

MITCHELL`S FRUIT FARM
(Pvt. Ltd)
University of Education okara

Submitted to:
Medam Mehvish Afzal
Muhammad Umair
Roll no:3029
Ali Raza
Roll no:3013
Zeeshan Yousaf
Roll no:3010
Sohail Amain
Roll no 3040
MBA 4rd (Eve)
University of Education okara campus.
Submitted by:

Introduction:
 Francis J. Mitchell arrived in Bombay from Scotland at the end of World War
I. He had been invited by his brother who was already established in North
Western India as contractor to the government for construction of the
railway network. At that time, an opportunity came to his way in the form of
the emerging irrigation system being laid out in the canal colony districts
of West Punjab. He was successful in obtaining the lease of 720 acres of
agricultural land in the Montgomery (Later Sahiwal but now it is in Okara
District premises) district. He initiated the business of growing grapes for
eventual sale as dried raisins and sent his younger son Richard to Australia
for training at Mildura which was well known as a center of specialization in
the field of horticulture. The Company, with Francis Mitchell as its Governing
Director and his two sons Leonard and Richard as Directors, was
incorporated in 1933 and given the name Indian Mildura Fruit Farms Ltd.

Introduction(Cont.):
 Mitchell’s is the only major food company in Pakistan today with fully
integrated operations having its own growing and processing facilities at
one location The success of Mitchell’s brands is the result of the corporate
emphasis laid upon Quality Control reinforced by Research & Development.
The R & D section prepares new recipes and formulations whereas the QC
section ensures selection of the finest fruits and error free processing and
packaging, thus ensuring that all products live up to the consumers’ high
expectations.
 The production facilities and factory offices are situated in the Renala khurd
near district Okara. This place is about 115 kilometers far from the head
office of the company in Lahore

Introduction(Cont.):
 This factory is lying in the vast area of about 10 acres. The farms of
MITCHELL’S Fruit Farms Limited are also occur between Renala khurd and
Okara. The distance between Renala and Okara district is round about 13
km. The farms of the company lying on the area of 450 acres.

Vision & Mission Statement:
 To be a leader in the markets we serve by providing
quality products to our consumers while learning from
their feedback to set even higher standards.
 To be a company that continuously enhances its
superior technological skills to remain internationally
competitive in this day and age of increasing
challenges.
 To be a company that attracts and retains competent
people by creating a culture that fosters innovation,
promotes individual growth and rewards initiative and
performance.

Vision & Mission Statement(Cont.):
 To be a company which optimally combines its
people, technology, management systems, and
market opportunities to achieve profitable growth
while providing fair returns to its shareholders.
 To be a company that endeavors to set the highest
standards in corporate ethics.
 To be a company that fulfills its social responsibility

Organizational structure:
Board of directors
Advisor
Chairman
MD/CEO
ES AM CFO MM SCM

Financial structure:

Nature of business:
 It engaged in the manufactured and the
sale of various farms and confectionery product.

Products:
Grocery Products Confectionery
Products
New products
Bottled water Chocolates Fruit Punch
Vinegar ButterScotch Fruitica Orange
Pickles Coconut Affair Yum! Ketchup Stand-up
nutritious Canned Fruits &
Vegetables
Fruit Bon Bons Apple Jelly Junior
tasty Pickles MilkToffees Hot & Sweet Sauce
Marmalade Candies Synthetic White Vinegar
Jallies Jaam-e-Hayat
Fruit jam Mango Hyderabadi Pickle
Fruit Drinks Spinach Puree
SquashesUniversity of Education okara

Financial sources:
 The authorized capital is 100 million and issued and paid up capital of
company is 43.75 million. The loan took by the Mitchell is 82 million.
 These are the financial sources of Mitchell Company:
 Habib bank Ltd
 Askari bank Ltd
 Standard charted bank
 MCB bank
 Allied bank Ltd
 National bank of Pakistan

Example of similar company:
 Gourmet (Pvt. Ltd.)
 Shazan (Pvt. Ltd.)
 Giggly (Pvt. Ltd.)
 Candy land (Pvt. Ltd.)
 Tetra Pak (Pvt. Ltd.)

Balance Sheet:
Items Rs. In 000 %
Non Current Assets 698362 49.83
Current Assets 703215 50.17
Total Assets 1401577 100
Equity 578913 41.30
Non Current Liabilities 306366 21.86
Current Liabilities 516298 36.84
Total Eq.&Lib. 1401577 100

Analysis of
BS & P&L
Account:

Memorandum of Mitchell`s fruit farm:
 Name of company.
 The name of company is “Mitchells fruit farm private limited “
 Its registered regional sale office(central ) located in Renala khurd and
regional sales office located in 40-A,zafar ali road,gulbarg 5 lahore Pakistan.
 The object of the company is provide safe and sound Grocery Products and
Confectionery Products to customer .
 Company concern for loan and financial aid to banks .
 The capital of company is 100 million
 Property Rights:
 Given proprietary rights by L. Rose and Company Ltd. of England in 1946
because of its dedication to quality and technical expertise.
 Only Pakistani manufacturer and distributor of Lime Juice Cordial and Lime
Marmalade in Pakistan and Afghanistan.

Memorandum of Mitchell`s fruit farm:
 The subscriber of the company stated below.
 S.M mohsin, chairman, non executive director
 mujeeb rashed chief executive officer
 sitwat mohsin non executive director
 mehdi mohsin executive director
 moaz mohiuddin independent non executive director
 syed faisal eman non executive director
 Umme kalsoom imam non executive director
 jamal naseem non executive director (nit nominee)
 Mitchells is private limited company and limited by shares the share capital
of company is 43.75 million .its memorandum printed and signed by each
subscriber.

Article of Association of Mitchell`s fruit farm:
 Its manufacturing concern it has three types of share (issued ,subscribed
and paid up capital ) its share are transferable and offer in lahore and
Karachi stock exchange .
 Its annul general meeting held in jan31.2015 on Saturday at register office of
the company at 40-zafr ali road gulbarg Lahore to transact following
business.
 Ordinary business
1 . to confirm the mints of last general meeting
2. to analyses the audit report
3. to approve payment of cash dividend by the board of director .
4. to appoint the auditor for the year ending December 31 ,2015

Article of Association of Mitchell`s fruit farm
(Cont.):
 The retiring auditors namely Messers A. F. FER GUSON and Co. CHARTERET
ACCOUNTANTS being eligible for reappointment .
 Ever member of the company having right of votes
 50 %Dividend as recommended by the board of director in general meting
the reserve of company 9.6 million.
 There are three types of meetings held each year
 Board of director meeting
 Audit committee
 HR and remunerations committee meeting

(Cont.):
 These are the auditor of the company
 Maaz mohiuddim
 s.m mohsin ,
 syed faisal imam
 Indemnity of the company is S.M Mohsin
 The arbitrator of the company Atif raiz
 The legal adviser of the company R. Minto & Mirza
 Its article is register according to companies ordinanace 1984.its article
also printed and signed by the each subscriber

(Cont.):
 These are notices issued in general meeting the individual member who
have not submitted copy of there valid CNIC to the company or again
reminded to submitted at head office till july o5,2015.
 The share transfer book of the company will remain close from jan.23 ,2015
to jan.31,2015
 A member eligible to attend and watch in meetings and also appoint and
other member as his proxy to ten and vote on his behalf ..
 The share holder immediately notify the change the address

Prospects:
 “Mitchells fruit farm private limited renala khurd (okara) Punjab pakitan
 Name of director
 S.M mohsin (chairman,non exective director)
 mujeeb rashed ( chief executive officer)
 sitwat mohsin (non executive director)
 mehdi mohsin (executive director)
 moaz mohiuddin (independent non executive director)
 syed faisal eman (non executive director)
 Umme kalsoom imam (non executive director)
 jamal naseem non excutive director (nit nominee)

Prospects(Cont.):
 Name of auditor
 A.F Ferguson & company chartered Accounts
 Every share holder right of voting power and to attend meetings which are
held in company
 the estimated preliminary expense of company is 10.23 million
 Return od debenture and share allotted 50% of reserve
 a subscriber can purchase minimum 100 share according to company rules
 the name of undertaken is S.M Mohsin

Prospects(Cont.):
 Business contract
They have contract with these companies
 Ayun Chaudhary investment (Ltd)
 Baurme oil mills Ltd
 Continentle capital Mangement PVT
 Fikree’s SMC-pvt Ltd
 Lakhiani securities Pvt
 Perin din shaw Pvt
 Sarfraz mehmood Pvt

Prospects(Cont.):
 The firm’s earnings per share (EPS) are generally of interest to present or
prospective stockholders and management.
 The earnings per share represent the number of dollars earned on behalf of
each outstanding share of common stock.
 They are closely watched by the investing public and considered am
important indicator of corporate success.
 Sales of the company
 Sales of the company according to P&L Account 2014 is 975.12 million.
 Production cost of company is 644.56 million according to balance sheet
2014
 They are target both domestic and international market their product sent
to 55 different countries

Market strategies of Mitchell’s:
 Personnel and flexible customer services
 Special feature in the product
 Special packaging
 Continues survey
 Enhance of financial resources
 Providing good services
 Establish reputation and good will
 Batter accounting system
 Fulfill the market demand
 Using all technological resources like internet for advertisement
 Using all technologyUniversity of Education okara

Operational strategies of Mitchell’s:
These are Operational strategies
 Focus on product development
 Focus on services development
 Focus on development core competency
 Focus on customer
 Focus on our resources
 Safe and sound production area

Local Supplier of Mitchell’s:
 Packages Pvt. Ltd.
 Printech
 Glass Industry
 Flavors Maker Companies

SWOT Analysis:
Strength and opportunity:
 Jam, Jellies, Marmalade, Sauces & Pickles
 They are termed as cash cow of Mitchell’s
 Fully integrated operations
 Having own growing and processing facility
 Strong and continuous Research & Development
 A smooth distribution system and nationwide coverage
 Right products, quality and reliability
 Management is committed and confident
 Mitchell’s can continue its dominance as innovator
 Can maintain its position as a market leader
 International and domestic market expansion
 Introduce new food products and innovation also
 End-Users Response to new ideas
 Can be a tend setter in market
 Can surprise its competitors

SWOT Analysis(Cont.)
Threats and weakness:
 During the year the Company’s two important investments in the Fruit
Pulping Line and Coal fired Boiler were completed and successfully started.
Thus Tomatoes, Mangoes and Apples that are used by the Company in
making its products were processed on this most modern, hygienic and
Food safe plant with higher efficiency and lower energy consumption.
Some of the Fruit Pulps manufactured are already shipped to export
markets.

SWOT Analysis(Cont.)
 Less support of Promotions.
 Hardly advertising on the Media.
 The management style that has adopted by the company is bureaucratic
Degree of formalization and centralization is high.
 Not serious in promoting its brands.
 Don’t have any short term and long-term decision-making plan.
 Decreasing growth rate and eventually losing market shares.
 As we know that there is severe competition in the food industry, but still the
availability of Mitchell’s products is very poor.
 Company is offering fewer discounts as compare to other relevant industry’s
companies like Shezan, National, Rafhan, Salman’s and Ahmed to retailers and
distributors.

HRD & FO:
Human Resource Development:
 Whereas on the job training continued in all our functional disciplines for continuous
improvement in our Operations, several of our technical staff were trained in the operation
of new technologies introduced at our plant both locally by foreign trainers as well as
abroad.
Future Outlook:
 The Company will continue to focus on providing high quality products to consumers that
have been processed from fresh farm produce. Our products will be designed to improve
the quality of life of consumers both in terms of convenience and pleasure. We will
continue to enhance our mutually beneficial relationships with the farming communities
surrounding our factory thus improving their economic wellbeing.

Corporate and Financial Reporting
Framework:
Management of the company, present fairly its state of affairs, the results of its
operations, cash flows and changes in equity have been maintained. consistently
applied in preparation of financial statements and accounting estimates are based
on reasonable and prudent judgment
 Increased competition (shezan food ,national food,rafahan food etc.)
 Politically Instability
 Additional general sales taxes and tough economic conditions of the country
are reducing the purchasing power of the people.
 Increasing Market Share of Competitors.
 The competition in the food processing industry is much severe than the past.
Now the many national companies are joining hands with multi-national
corporations for additional support in terms of marketing activities, production
expertise and financial resources.

Conclusion:
 Mitchell’s is very much conscious and careful about its sales and about the
customer level satisfaction. Mitchell’s Fruit Farms is a large manufacturing
concern which produce different type of eatable products the company
objection regarding to managing capital company are to safe Gard the
company ability to continues as a going concerns in order to provide return to
share holders and benefits to other stake holders and to maintain and optimal
capital structure to reduce the cost of capital the company adjust the amount of
dividend paid to share holder return capital to share holder through repurchase of
share issue new share or sell asset to reduce there debts. Company getting huge
profits last year and giving all rights to their share holders. They are providing
employment and running different non profits organizations.

References:
 http://www.mitchells.com.pk/
 Self visiting through Management
 Prospectus of Mitchell's
 Annual report of Mitchell's 2014
 http://www.slideshares.com

MITCHELL'S FRUIT FARM ANALYSIS

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MITCHELL'S FRUIT FARM ANALYSIS