CHAPTER 1 INTRODUCTION TO INDUSTRY

1.1

Introduction 1.1.1 Major Areas 1.1.2 Benefits Of Food and Dairy Industry 1.1.3 Food and Dairy Nutshell

1.2

History Of Food And Dairy Industry 1.2.1 History of Food Laws

1.3 1.4

Global Food And Dairy Industry Food And Dairy Industry In India 1.4.1 Key Growth Drivers Of Food And Dairy Sector In India 1.4.2 Key Opportunities In Food and Dairy Sector 1.4.3 Challenges Faced By The Industry

1. 1 INTRODUCTION
Food and dairy sector is indispensable for the overall development of an economy as it provides a vital linkage and synergy between the agriculture and industry. It helps to diversify and commercialise farming; enhance income of farmers; create markets for export of agro foods as well as generate greater employment opportunities.

Through the presence of such industries, a wider range of food products could be sold and distributed to the distant locations. The term 'food and dairy' is mainly defined as a process of value addition to the agricultural or horticultural produce by various methods like grading, sorting and packaging. In other words, it is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful. It covers spectrum of products from sub-sectors comprising agriculture, horticulture, plantation, animal husbandry and fisheries.

Food and dairy industry is one of the largest industry in India and is ranked 5th in terms of production, consumption and export. Earlier, food and dairy industry was largely confined to the food preservation, packaging and transportation, which mainly involved salting, curdling, drying, pickling, etc. However, over the years, with emerging new markets and technologies, the sector has widened its scope. It has started producing many new items like ready-to-eat food, beverages, processed and frozen fruit and vegetable products, marine and meat products, etc. It also includes establishment of post-harvest infrastructure for processing of various food items like cold storage facilities, food parks, packaging centres, value added centres, irradiation facilities and modernised abattoir.

The food and dairy sector comprises of two segments- Primary processed food and Value added food. Primary segment comprises of packaged fruit and vegetables, milk, flour, rice, spices etc. and constitutes around 62% in value terms of the processed foods. Value added segment includes processed fruits and vegetables, juices, jam &jelly etc and holds around 38% share in the total processed food.

In an emerging country like India, where growth with equity is a primary policy thrust, the optimum development of the food and dairy sector will contribute significantly in tackling several developmental concerns such as disguised unemployment in agriculture, rural poverty, food security, food inflation, improved nutrition, prevention of wastage of food etc. By serving as a bridge between agriculture and manufacturing and by dealing with a basic need of all Indian citizens the assured supply of healthy and affordable food at all locations in the country, this sector has the potential to be a major driver in Indias growth in the coming years. In fact the food and dairy sector has been growing faster than the agriculture sector.

The food and dairy industry includes a diverse group of companies involved in the processing of products like fish, meat, milk, crops and water. It includes millions of Small & Medium Enterprises (SMEs) worldwide and also some of the largest companies in the world. Many of these companies deliver products directly to consumers, while others specialize in Business-to-Business activities (ingredients, commodity markets). Some companies directly participate in all areas of food production, from farming activities through to final production and retail. Others are concentrated more at the top end of the production chain or buy through commodity markets. In fact, Food and dairy one of the worlds largest industries from the perspective of the number of companies involved in the sector, as well as in terms of its total economic value.

1.1.1 Major Areas

The sector comprises of the following major areas Fruits & Vegetables Beverages, Juices, Concentrates, Pulps, Slices, Frozen & Dehydrated products, Wine Potato Wafers/Chips etc. Fisheries Frozen & Canned products mainly in fresh form Meat & Poultry Frozen and packed mainly in fresh form, Egg Powder Milk & Dairy Whole Milk Powder, Skimmed milk powder, Condensed milk, Ice cream, Butter and Ghee Grain and Cereals Flour, Bakeries, Biscuits, Starch Glucose, Cornflakes, Malted Foods, Vermicelli, Pasta Foods, Beer and Malt extracts, Grain based Alcohol. Consumer Industry Chocolates, Confectionery, Soft/Aerated Beverages/Drinks Plantation Tea, coffee, cashew, cocoa, coconut etc

1.1.2. Benefits of Food and dairy industry

Benefits of food and dairy include toxin removal, preservation, easing marketing and distribution tasks, and increasing food consistency. In addition, it increases seasonal availability of many foods, enables transportation of delicate perishable foods across long distances and makes many kinds of foods safe to eat by de-activating spoilage and pathogenic micro-organisms. Modern supermarkets would not exist without modern food and dairy techniques, long voyages would not be possible and military campaigns would be significantly more difficult and costly to execute. Processed foods are usually less susceptible to early spoilage than fresh foods and are better suited for long distance transportation from the source to the consumer. When they were first introduced, some processed foods helped to alleviate food shortages and improved the overall nutrition of populations as it made many new foods available to the masses. Modern food and dairy product also improves the quality of life for people with allergies, diabetics, and other people who cannot consume some common food elements. Food and dairy products can also add extra nutrients such as vitamins.

The significant benefits for different stakeholders involved in food and dairy are: Farmer higher yield, better farm realization, lower risk Consumer greater variety, lower prices, new products Companies new business opportunities, demand growth Economy/Government Employment generation, reduced rural migration

1.1.3 Food and dairy in a nutshell

There are different stages of processing of food as depicted hereunder

Agriculture Food processing Transport Retailing Consumption Waste

Primary Processing relates to conversion of raw agricultural produce, milk, meat and fish into a commodity that is fit for human consumption. It involves steps such as cleaning, grading, sorting, packing etc. Food and dairy Industries usually deal with higher levels of processing where new or higher value food products are manufactured.

1.2. HISTORY OF FOOD AND DAIRY INDUSTRY

Food and dairy dates back to the prehistoric ages when crude processing incorporated slaughtering, fermenting, sun drying, preserving with salt, and various types of cooking (such as roasting, smoking, steaming, and oven baking). Salt preservation was especially common for foods that constituted warrior and sailors' diets, until the introduction of canning methods.

Evidence for the existence of these methods can be found in the writings of the ancient Greek, Chaldean, Egyptian and Roman civilizations as well as archaeological evidence from Europe, North and South America and Asia. These tried and tested processing techniques remained essentially the same until the advent of the industrial revolution. Examples of ready-meals also exist from preindustrial revolution times such as the Cornish pasty and Haggis. During ancient times and today these are considered processing foods. Food and dairy products has also helped create quick, nutritious meals to give to busy families.

Modern food and dairy production technology in the 19th and 20th century was largely developed to serve military needs. In 1809 Nicolas Apart invented a vacuum bottling technique that would supply food for French troops, and this contributed to the development of tinning and then canning by Peter Durand in 1810. Although initially expensive and somewhat hazardous due to the lead used in cans, canned goods would later become a staple around the world. Pasteurization, discovered by Louis Pasteur in 1862, was a significant advance in ensuring the micro-biological safety of food.

In the 20th century, World War II, the space race and the rising consumer society in developed countries (including the United States) contributed to the growth of food and dairy with such advances as spray drying, juice concentrates, freeze drying and the introduction of artificial sweeteners, colouring agents, and preservatives such as sodium benzoate. In the late 20th century products such as dried instant soups, reconstituted fruits and juices, and self cooking meals such as MRE (Meal Ready-to-Eat) food ration were developed. 7

In Western Europe and North America, the second half of the 20th century witnessed a rise in the pursuit of convenience. Food and dairy companies marketed their products especially towards middle-class working wives and mothers. Frozen foods (often credited to Clarence Birdseye) found their success in sales of juice concentrates and "TV dinners". Processors utilised the perceived value of time to appeal to the post-war population, and this same appeal contributes to the success of convenience foods today.

1.2.1 History of Food laws

Food laws were among the earliest of enactments known to man. Governments over many centuries have endeavoured to provide for the safety and wholesomeness of mans food by legal provisions and appropriate punitive action. Over the years also, rude forms of fraud, such as adding worthless substances to food or extracting valuable constituents from it, have been followed by sophisticated methods of adulteration more difficult to detect. The birth of modern chemistry in the early nineteenth century made possible the production of materials possessing properties similar to normal foods which, when fraudulently used, did not readily attract the attention of the unsuspecting purchaser. Later, better analytical methods were used in food control work to detect adulterants. When scientists demonstrated that some adulterants were dangerous to health, the aroused public demanded laws that would both protect their health and prevent fraud. Food Laws in one form or another, such as religious tenets or prohibitions, were inherent in all ancient civilizations and have come down to us from early times. It was not until the late nineteenth and early twentieth century with the urbanization of societies and the depopulation of rural areasthat food laws, as understood today, were prepared. This process was hastened by pressure that developed as the public rebelled against the generally unhygienic conditions of the period. Since the end of World War II, there have been major changes in the food and dairy industry, and this development continues today; at the same time, our knowledge of the risks, actual and potential, has considerably increased. Reorientation and further consolidation of food laws have therefore become necessary to protect the health of the consumer from the many new risks to which he has become exposed and over which he has little personal control.

1.3 GLOBAL FOOD AND DAIRY INDUSTRY

The Global Processed Food and dairy Industry is valued at US $ 3.2 trillion and accounts for over 3/4th of global food sales. Despite the large size of the industry, only 6% of the processed food is traded the world over as compared to bulk agricultural commodities where 16% of produce is traded. Growth of the sector has been the highest in developed economies, especially across Western Europe, North America, Japan and Australia. USA is the single largest consumer of processed food and accounts for 31% of global sales. The food and dairy sector has seen substantial growth in developing economies with increase in GDP, per capita income and the resultant changes in lifestyle. Organized retailing and availability of better processing technologies too have contributed to the accelerated growth of the sector.

The food and dairy industry is characterized by intense competition, with the most reliable firms performing well by focusing on efficiency in terms of fast processing and distribution. The global economic recession had less effect on the food processing industry than other industries due to rising demand for pre-packaged food.

The industry is becoming increasingly automated, and is therefore seeing labour costs decline. The advantages of food and dairy include greater food consistency, longer shelf life, removal of toxins, reduction of food borne diseases and cheaper food. The global fresh meat market is expected to produce 300 million tons by 2015. A rising global population and extensive urbanization are driving forces for the market.

Asia-Pacific demand is growing in tandem with disposable incomes and meat consumption. Asia-Pacific leads the food and dairy industry in terms of market share. Market growth in countries in Eastern Europe and Asia-Pacific continues as developing countries enjoy a more favourable economic climate, with larger disposable incomes and improved living standards. Demand for food that is light on preparation time continues to grow in developed countries. Germany, The US, France and Austria are among the major exporters of food processing machinery while the US, the UK, Germany and France lead

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in importing. Chinas processed food industry is expected to continue showing close to 35% yearly growth from 2010 through 2013, mainly due to higher standards of living and improved economic conditions. Chinas processed food market was left relatively unscathed by the economic downturn. Growth will continue to be lead by meat processing, with a forecast yearly growth of more than 15% for the next few years. Other leading food market segments in China are dairy products and ready meals. Growth will likely continue as Chinas 25% rate of processed food production catches up with the average 80% rate in developed nations such as the US.

The main driving force behind the global food industry is technological innovation, which concentrates on satisfying consumer demand for more tastes and easytopreparefoods. Companies are focusing on innovation to boost profits, with 60% of large companies and over 40% of medium sized enterprises investing in process and product innovation. Over 99% of the EU food and beverage industry is comprised of small-andmedium-sized enterprises. Danish, French and Greek food and dairy companies dedicate a sizeable part of their profit to research and development, while other countries such as Austria, Hungary and the Czech Republic lag further behind. The main aims of research and development within the food and dairy industry are better quality food, enhanced taste, cheaper prices and greater convenience. Other industries recruited in the process include nanotechnology, biotechnology and other advanced information technology fields. Companies cut production costs by: reducing waste; employing effective manufacturing techniques used in other industries; optimizing automation to cut back on labor costs; and finding ways to cut down on input materials such as energy.

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1.4 FOOD AND DAIRY INDUSTRY IN INDIA

The Indian food and dairy industry stands at $135 billion and is estimated to grow with a CAGR of 10 per cent to reach $200 billion by 2015. The food and dairy industry contributed 7% to Indias GDP. The industry employs around 13 million workers directly and about 35 million indirectly. The industry is segmented into sectors namely, milk and allied products (dairy), meat and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and oilseeds (staple) products, alcoholic and non-alcoholic products (beverages), and packaged foods. The classification is not distinct as many processed products overlap different segments.

India ranks No. 1 in the world in production of Milk (Fresh, whole, buffalo), Pulses, Ginger, Chick Peas, Bananas Guavas, Papayas and Mangoes. Further, India ranks No. 2 in the world in production of Rice, Wheat, Potatoes, Garlic, Cashew Nuts, Groundnuts, Dry Onion, Green Peas, Pumpkins, Gourds, and cauliflowers. With the huge production base India can easily become the leading food supplier to the world and at the same time serving its vast growing domestic market with over a billion people.

Investments in the registered food and dairy units have been growing in the recent years. In 2007-08 the fixed capital of registered food and dairy units have increased by 18.93% over the previous year. Food and dairy industry in India is increasingly seen as a potential source for driving rural economy as it brings synergy between industry and agriculture.

A developed food and dairy industry is expected to lead increase in farm gate prices translating into increased rural incomes, reduce wastages, ensure value addition, promote crop diversification, generate employment opportunities as well as export earnings. With such a large and diversified production base coupled with low manpower cost and modern technology, the Indian food processing sector is poised for growth, if the advantages are leveraged optimally.

The growth is driven by the fact that the central government has given a priority status to all agro-processing businesses. Government incentives in the field of mega food parks, cold chain and exports benefits are also playing an important role in promoting food and dairy. 12

The major challenges are investments at different points of the supply and value chain, proper research, farm and lab connectivity, up gradation of technology, increase in farm holding, skill and manpower training, backend and front-end integration and cold chain integration.

The opportunities in the food and dairy industry are vast. However, there is a need to improve technology and productivity to be competitive globally. As the economy grows, the food and dairy industry will offer bigger opportunities to the new as well as the existing players.

India has the second largest arable land of 161 million hectares and has the highest acreage under irrigation. Next to China, India ranks second largest food producer in the world and has the potential to immerge the biggest with its food and agricultural sector. India accounts for less than 1.5% of international food trade despite being one of the worlds major food producers, which indicates huge potential for both investors and exporters.

Advantage India India is one of the largest food producers in the world. India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies. India is looking for investment in infrastructure, packaging and marketing. India has huge scientific and research talent pool. Well developed infrastructure and distribution network. Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income leading to rapid growth and new opportunities in food and beverages sector. 50 per cent of household expenditure by Indians is on food items. Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia).

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1.4.1 Key growth drivers of Food and dairy Sector in India Increasing spending on health and nutritional foods. Increasing number of nuclear families and working women Changing lifestyle Functional foods, fresh or processed foods Organized retail and private label penetration Changing demographics and rising disposable incomes

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1.4.2 Key opportunities in Food and dairy Sector Processable varieties of crop Contract farming Investments in infrastructure through Public Private partnership (PPP) Mega Food parks Logistics and cold chain infrastructure Food safety Management Systems Machinery and packaging

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1.4.3 Challenges faced by the industry

High level of wastage of agricultural produces is primarily on account of the inherent disadvantages faced by the sector. This sector is characterized by preponderance of small farmers, small scale & tiny processors, outdated technology, poor infrastructure and a maze of middle men. Therefore, this sector needs support in terms of creation and strengthening of infrastructure which individual farmers and processors will not be in a position to create and sustain. Further, there is also a need for strengthening R&D activities in food and dairy sector for innovation of technology which suits local needs, popularization of appropriate technology, skill development and creation of an institutional framework supportive of the industry. The major challenges facing the sector are illustrated below:

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CHAPTER 2 MAJOR PLAYERS OF THE INDUSTRY

2.1

Net Profit Based Major Players Of The Industry 2.1.1 Nestle India Limited 2.1.2 Jubliant Food works Limited 2.1.3 Britannia Industry Limited 2.1.4 Cadbury India Limited 2.1.5 Glaxosmithkline Consumer Healthcare Limited

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2.1 NET PROFIT BASED MAJOR PLAYER OF INDUSTRY 2.1.1 Nestle India Ltd.
Nestle India Ltd, one the biggest players in FMCG segment, has a presence in milk & nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery segments. The company is engaged in the food business. The food business incorporates product groups, such as milk products and nutrition, beverages, prepared dishes and cooking aids, chocolates and confectionery. Nestle India manufactures products under brand names, such as Nescafe, Maggi, Milky bar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea. The company has also introduced products of daily consumption and use, such as Nestle Milk, Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita. The company's brands include milk products and nutrition, prepared dishes and cooking aids, beverages, and chocolates and confectionery. Their milk products and nutrition includes Nestle Everyday Dairy Whitener, Nestle Everyday Ghee, Nestle Milk, Nestle Slim Milk and Nestle Dahi. Beverages Include Nescafe Classic, Nescafe Sunrise Premium, Nescafe Sunrise Special and Nescafe Cappuccino. Nestle India is a subsidiary of Nestle S.A. The company has presence across India with 7 manufacturing facilities and four branch offices spread across the region. The four branch offices in the country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The company's head office is located in Gurgaon , Haryana. Nestle India Ltd was incorporated in the year 1956. The company set up their first production facility in the year 1961 at Moga in Punjab. In the year 1967, they set up their second plant at Choladi in Tamil Nadu as a pilot plant to process the tea grown in the area into soluble tea. In the year 1989, they set up a factory at Nanjangud in Karnataka. In the year 1990, the company entered into the chocolate business by introducing Nestle Premium Chocolate. In the year 1991, they entered in joint venture floated by the parent in collaboration with BM Khaitan group to set up facilities to manufacturing a range of Soya based products. In the year 1993, they set up a factory at Samalkha in Haryana. In the year 1995, the company launched the company's worldwide legendary brand chocolate, Kitkat. 18

The company commissioned two factories in Goa at Ponda and Bicholim in the year 1995 and 1997 respectively. In the year 1999, the company launched the product, Nestle Growing Up Milk nationally. In April 2000, they forayed into the Ultra Heat Treated (UHT) liquid milk market. In the year 2001, the company launched Nestle Pure Life bottled water. Within few months, they again launched their second water brand-San Pellegrino - in the Indian market. The company also made their foray into the iced tea segment. In the year 2004, a project has been initiated to upgrade the production technology for infant nutrition products at the Samalkha factory. Nestle India Ltd recognised for its outstanding performance in Exports by the Coffee Board of India in the Export Awards 2004-05 as the Best Exporter of Instant Coffee, Best Exporter to Russia & CIS Countries (coffee) and Best Exporter for Far East Countries (coffee). The company bestowed the UDYOG RATNA award by the PHD Chamber of Commerce and Industry to recognise Nestle's significant contribution to the economic development of Punjab for the year 2005. The company set up a new department -the Channel & Category Sales Development (CCSD) to develop new solutions for the various channels and customers and improve the implementation of commercial plans in the market. In the year 2006, the company set up their seventh factory at Pantnagar in Uttarakhand. In the year 2007, CNBC Asia presented the company with the India Innovator of the year award. The company's four factories were awarded the internationally recognised external certification ISO 14001 for adherence to environmental processes and OSHAS 18001 for Health and Safety. In the year 2008, the company launched Nestle Nesvita Pro-Heart Milk with Omega-3 in Mumbai. Nestle Nesvita Pro-Heart is part of daily diet and has Omega-3 heart friendly nutrients scientifically known to help manage cholestrol. As part of their ongoing commitment to offering best in class nutrition products to Indian consumers, the company launched NESTLE NAN 3, a follow-up formula for older infants. During the year, MAGGI PICHKOO Tomato Ketchup was launched in a unique easy to handle day pack to drive affordability, taste and convenience for a larger number of 19

consumers. The company also launched another pioneering product, MAGGI Bhuna Masala, to cook tasty and healthy everyday meals, more conveniently. The company also launched Nestle Kitkat Mini and Nestle Bar One Mini, at Rs 3 price to expand the repertoire of offerings. Similarly, they launched Nestle Kitkat Chunky at Rs15 to strengthen the range of wellness oriented Nestle products that consumers can choose from. The company's three more factories were awarded the internationally recognized external certification ISO 14001 for adherence to environmental processes and OSHAS 18001 for Health and Safety. With this, all the seven factories of the company now have ISO 14001 and ISO 18001 certifications. In the year 2009, the company provided inputs to the group R&D for development of an innovative product Maggi Bhuna Masala. They launched Maggi Nutri-Licious Pazzta. During the year, Maggi further leveraged their strengths to drive affordable nutrition and launched two new products, namely, Maggi Rasile Chow and Maggi Masala-ae-Magic. They launched Nestle Kitkat in a new unique single finger format and Nestle Much Guru pack at the higher price point. The company acquired the Healthcare Nutrition business of Speciality Foods India Pvt Ltd with effect from January 1, 2010. In the year 2010, the company expanded the installed capacity of Milk Products and Nutrition by 3,983 MT to 147,546 MT. Also, they increased the installed capacity of Prepared Dishes & Cooking aids by 14,028 MT to 205,017 MT. In the year 2011, the company increased the installed capacity of Milk Products & Nutrition by 14,561 MT to 162,107 MT, Prepared dishes & Cooking aids by 21,430 MT to 226,447 MT and Chocolate & Confectionery by 3,283 MT to 36,052 MT.

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1.2.2 Jubilant food works Limited

Jubilant Food works Ltd, a Jubilant Bhartia Group Company is a food service company. The company offers a menu of quality pizza and side dishes to their customers. They operate their stores pursuant to a Master Franchise Agreement with Domino's International, which provides them with the exclusive right to develop and operate Domino's pizza delivery stores and the associated trademarks in the operation of stores in India, Nepal, Bangladesh and Sri Lanka. The pizza stores in Sri Lanka are operated by their sub-franchisee, DP Lanka. There are currently five Domino's stores in Sri Lanka, all in Colombo.

The company was the largest pizza chain in India and one of the fastest growing multinational fast food chains between 2006-2007 and 2008-2009, in terms of number of stores. Their Domino's pizza stores in India are generally located in neighbourhood markets in urban areas. They also operate pizza stores located in food courts in shopping malls and in institutional campuses.

Jubilant Food works Ltd was incorporated on March 16, 1995 as a private limited company with the name Domino's Pizza India Pvt Ltd. The company entered into a master franchise agreement with Domino's International for north and west regions in India.

In January 1996, the company opened their first Domino's pizza store. In September 14, 1996, the company was converted into a public limited company and the name was changed to Domino's Pizza India Ltd. In the year 1998, they extended master franchise agreement with Domino's International to whole of India and Nepal.

In the year 2001, the company made a tie-up with Hindustan Coca-Cola Beverages Pvt Ltd. In the year 2003, they became the subsidiary of Jubilant Enpro Pvt Ltd. In the year 2004, they launched '30 minutes or free' campaign. In the year 2005, the company entered into master franchise agreement for Sri Lanka and Bangladesh.

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In the year 2009, the company launched 'Pizza Mania'. Also, they began to offer pasta and choco lava cake to their customers as a side item. They opened 60 new stores during the financial year 2008-09.

In September 17, 2009, the company entered into a trademark license agreement with Domino's International whereby Domino's International conferred on the company a nonexclusive right to use the trademarks and service marks ('Domino's Trademarks') in India.

In September 23, 2009, the company entered into an agreement with Domino's International for the grant of the exclusive right and license to establish and operate a commissary and to sell and distribute products using the know-how in the Territory and the exclusive right and license to prepare, process and produce Products using the technical knowledge in the Territory.

In September 24, 2009, the company changed their name from Domino's Pizza India Ltd to Jubilant Foodworks Ltd. The company plans to open between 65 and 70 stores during the financial year 2009-10, of which they opened 31 stores as of November 30, 2009 in the existing cities.

As of November 30, 2009, the company operated 286 stores in India located in 22 states and union territories, including in 59 cities across the country, and, through a subfranchisee, DP Lanka, five stores in Sri Lanka. As of November 30, 2009, we did not operate any stores in Nepal and Bangladesh. The company plans to expand their presence by entering into new cities and towns where they currently have no operations. They plan to open new stores in cities and towns which would be located within less than one day travel distance from their existing commissaries in order to minimize additional capital expenditure and ensure quality control. Further, the company's Master Franchise Agreement with Domino's International requires them to open 25 stores each, in 2011 and 2012 and they continue to evaluate various new locations for further expansion. They are also exploring the possibility of opening stores in the New Delhi and Mumbai airports on sub-franchise or sub-lease basis.

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2.1.3 Britannia Industry Limited.

Britannia Industries Limited (BIL) is a major player in the Indian Foods market with leadership position in Bakery category. Its brand portfolio includes Tiger, Marie Gold, Good Day, 50:50 and Treat. The Company was born in 21st March of the year 1918 as a public limited company. The Company's plants are situated in Kolkata, Delhi, Chennai, Mumbai and Uttarakhand. In 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of 'service biscuits' to the armed forces.

A new factory was established in the year 1924 at Kasara Pier Road in Mumbai. In the same year, the Company became a subsidiary of Peek, Frean & Company Limited, U.K., a leading biscuit manufacturing company, and further strengthened its position by expanding the factories at Calcutta and Mumbai. In 1952, the Kolkata factory was shifted from Dum Dum to spacious grounds at Taratola Road in the suburbs of Kolkata. During the same year automatic plants were installed in Calcutta and later in 1954 the automatic plants were installed in Mumbai plant, also in the same year the development of high quality sliced and wrapped bread in India was initiated by the company and was first manufactured at Delhi and a new bread bakery was set up at Delhi in the year 1965. Britannia Biscuit Company takes over biscuit distribution from Parry's during the year 1975. In 1976, the company had introduced Britannia bread in Calcutta and Chennai. During the year 1978, the company made Public issue, in that Indian shareholding crossed 60%.

The Company re-christened from Britannia Biscuit Company Limited to Britannia Industries Limited with effect from 3rd October of the year 1979. The Company had signed a 10-year technical collaboration agreement with Nebico Pvt Ltd., Nepal during the year 1980 for the supply of know-how relating to manufacturing, packaging and marketing of biscuits and selection of plant and machinery. During the year 1989, BIL's 23

Executive Office was relocated to Bangalore. During the year 1990, two new brands of biscuits, Elaichi Creamand and Petit Beurre were launched. Also, in the same year a new cashew badam variant of the brand Milk Bikis and brand extension of pure magic biscuit Vanilla cream were launched, Fruit bread was launched in Delhi. The Company launched two new speciality brands in the year 1991 viz., Britannia milk bread and Britannia brown bread in Delhi and extended nationally its main brands Petit Beurre and Elaichi Cream. In 17th August of the year 1991, the Company handed over its Soya unit at Vidisha, MP to SM Dychem Ltd. BIL had celebrated its Platinum Jubilee in the year 1992. After a year in 1993, Wadia Group had acquired the stake in ABIL, UK and becomes an equal partner with Group Danone in BIL. The Company was in re birth phase during the year 1997, new corporate identity 'Eat Healthy, Think Better' leads to new mission of 'Make every third Indian a Britannia consumer' and in the same year BIL entered into the dairy products market. In 1998, BIL had launched Half/Half, a soft cake filled with cream in two variants, chocolate-vanilla and vanilla-orange. The Company had rolled out its flavored milk brand Zip-Sip' in tetrapaks in the year 1999. Zip-Sip had been launched in Mumbai and some markets in the South.

Forbes Global Ranking was rated the company during the year 2000, Britannia among Top 300 small companies. In the same year, the company had launched Britannia Milkman Butter, a product under the Milkman brand. BIL made its fund in-principle agreement to acquire 49 per cent of Kwality Biscuits in the year 2001 through internal accruals. During the year 2002, the company had entered into a joint venture with the Fonterra Cooperative Group, New Zealand's biggest company and one of the leading diary co-operative groups in the world and the Britannia New Zealand Foods Pvt. Ltd was born. Pure Magic, the company's product was winner of the Worldstar, Asiastar and Indiastar award for packaging in the same year 2002. After a year, in 2003, BIL had launched 'Treat Duet', most successful of the year and Britannia Khao World Cup Jao rocks the consumer lives yet again. During the year 2004, Britannia accorded the status of being a 'Superbrand' and the brand Good Day added a new variant Choconut in its range. Reviewed marketing alliance with the Kolkata-based Thacker Dairy Products Pvt Ltd.

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In the year 2005, Britannia New Zealand had launched health drink for adult. The new plant in Uttaranchal, commissioned during the year 2005, it was ahead of schedule. In the same year, launched yet another exciting snacking option the Britannia 50-50 Pepper Chakkar. BIL had forged a strategic alliance with CCD Daily Bread Pvt Ltd in the year 2006, a Bangalore based Company engaged in manufacturing and retailing of premium breads, cakes snacks and high end ready to eat foods. In the year 2007, Britannia industries formed a joint venture with the Khimji Ramdas Group and acquired a 70 percent beneficial stake in the Dubai-based Strategic Foods International Co. LLC and 65.4% in the Oman-based Al Sallan Food Industries Co. SAOG. The company was rated as the No 1 Most Trusted Food Brand in a survey conducted by AC Nielsen ORGOMARG and published in Economic Times in the year 2007. Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic Cookies', Low Fat Dahi and renovated 'MarieGold' during the period of 2008. BIL was ranked 27th place in the list of India's Fastest Growing Large Companies by Business Today, Special on June of the year 2008.

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2.1.4 Cadbury India Limited.

Cadbury India Ltd, a subsidiary of Cadbury Schweppes Overseas Ltd is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. The company manufactures and sells chocolate blocks, slabs, or bars; coated wafer biscuits; malted food; and sugar confectionery. They also export their products to Sri Lanka, Dubai, Ghana and Maldives.

The company has manufacturing facilities at Thane and Induri in Maharashtra, Malanpur in Madhya Pradesh, Bangalore in Karnataka and Baddi in Himachal Pradesh and 4 sales offices at Mumbai, Kolkata, New Delhi, and Chennai. The corporate office is in Mumbai. The company operates in four categories namely, Chocolate Confectionery, Milk Food Drinks, Candy and Gum category.

In the Chocolate Confectionery business, the company has maintained their undisputed leadership over the years, which has some key brands, namely Cadbury Dairy Milk, 5 Star, Perk, Eclairs and Celebrations. In the Milk Food drinks segment, the main product is Bournvita, which is the leading Malted Food Drink in the country. In the medicated candy category Halls is the undisputed leader and in the gums category the company launched the worldwide dominant bubble gum, with the name Bubbaloo.

Cadbury India Ltd was incorporated in the year 1948 as a private limited company with the name Cadbury Fry (India) Pvt Ltd. The company began their operations in India by importing chocolates. In the year 1950s, the company started the manufacture of Chocolate and Bournvita. Also, they launched Cadbury's Fruit & Nut.

In the year 1960s, the company set up a Cocoa Research Centre in Kerala. They set up their first plant in India at Thane in Maharashtra. Also, they launched Cadbury's Tiffins, Nut Butterscotch, Caramels, Crackle, 5 Star and Gems.

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In the year 1970s, the company commissioned the Malt Extract Plant at Induri in Maharashtra. The name of the company was changed from Cadbury Fry (India) Pvt Ltd to Cadbury India Ltd. They launched Cadbury's Eclairs during this period. In the year 1980s, the company was converted into a public limited company. In the year 1990s, the company launched the Sugar Confectionery business with Trebor Googly. They launched Cadbury's Perk, Cadbury's Truffle and Picnic during this period.

In the year 2002, the company increased the production of Malted Foods from 6,570 tonnes to 7,900 tonnes. In December 2002, Cadbury Schweppes Plc UK acquired the global non-chocolate confectionary business of Pfizer Inc, USA namely Warner Lambert India Pvt Ltd. In the year 2003, Halls and Clorets were manufactured and successfully marketed by the company. Also, the company increased the production capacity of Malted Foods by 700 tonnes to 8,600 tonnes.

Cadbury Schweppes Plc through their subsidiaries, Cadbury Schweppes Overseas Ltd and Cadbury Schweppes Mauritius Ltd acquired equity shares of the company in excess of 90% with led to delisting of the company's equity shares from The Stock Exchange, Mumbai with effect from January 20, 2003 and National Stock Exchange Ltd, Mumbai with effect from February 7, 2003.

In the year 2005, the company increased the production capacity of Malted Foods by 4,600 tonnes to 13,200 tonnes and Hard Boiled confectionery & Gums by 1,026 tonnes to 8,651 tonnes. In the year 2006, they increased the production capacity of Malted Foods by 9,000 tonnes to 22,200 tonnes and Hard Boiled confectionery & Gums by 1,489 tonnes to 10,140 tonnes. In the year 2007, the company expanded the production capacity of Malted Foods by 4,200 tonnes to 26,400 tonnes and Hard Boiled confectionery & Gums by 6,630 tonnes to 16,770 tonnes and in the year 2008, they expanded the production capacity of Hard Boiled confectionery & Gums by 7,830 tonnes to 24600 tonnes.

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In March 2008, the company launched Cadbury Lite for consumers with diabetes, which contains a sugar substitute called Maltilol that ensures a low glycemic index in the product. In May 2008, the company joined hands with Tamil Nadu Agricultural University for a research project to promote Cocoa cultivation in Tamilnadu.

In October 2008, the company launched their dark chocolate Cadbury Bournville Fine Dark Chocolate in India, which is the fastest growing segment in the confectionary category. The chocolate is available in four different variants namely, Rich Cocoa, Almond, Hazelnut and Raisin & Nut. In February 2009, they launched Cadbury Bourn vita Li'l Champs, their latest offerings for children.

The company is setting up a new manufacturing facility (Unit 2) at Baddi, Himachal Pradesh. The construction of the unit is progressing well and is expected to be fully operational in the year 2009.

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2.1.5 GlaxoSmithKline Consumer health care Limited

GlaxoSmithKline Consumer Healthcare Ltd is one of the largest players in the Health Food Drinks industry in India. The company is an Indian associate of GlaxoSmithKline plc, UK. The company's principal activities are to manufacture and distribute a wide range of healthcare foods, drugs, pharmaceuticals and dairy products. The products include malted milk food, malted foods, biscuits, energy and protein foods, milk powders, ghee, milk fluid and milk cream. The company has their manufacturing facilities located at Nabha in Punjab, Rajahmundry in Andhra Pradesh and Sonepat in Haryana.

The products of GSK Consumer are categorized as Nutritional and Over the Counter (OTC) products. The Nutritional division includes health food drinks like Horlicks, which includes Junior Horlicks, Mother's Horlicks, Women's Horlicks, Horlicks Lite, and Horlicks biscuits, Boost, Viva and Maltova. The OTC division promotes and distributes a number of products in diverse categories, including prominent brands such as, Crocin, Eno and Iodex.

GlaxoSmithKline Consumer Healthcare Ltd was incorporated in the year 1958 as Hindustan Milkfood Manufacturers Pvt Ltd and was promoted by Horlicks Ltd. The company became public in the year 1961. In the year 1969, Beecham plc acquired Horlicks Ltd and became the majority shareholder in Hindustan Milkfood Manufactures Ltd and in the year 1979, Beecham India Pvt Ltd merged with the company. In the year 1991, the name of the company was changed to HMM Ltd.

In the year 1989, Beecham plc, UK and SmithKline, USA merged to form SmithKline Beecham plc. The company became part of SmithKline Beecham and the name was changed to SmithKline Beecham Brands Ltd. Again, in March 1994, the company name was changed to SmithKline Beecham Consumer Healthcare Ltd, reasserting their promise of providing healthcare to consumers.

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In the financial year 2000, the company acquired two new brands Viva and Maltova along with their patents and trademarks from Jagatjit Industries Ltd. The company also tied up the manufacturing capacity of Jagatjit Industries Ltd for the manufacture of Viva and Maltova on a long term contract.

Glao Wellcom plc and SmithKline Beecham plc merged and form a global organization GlaxoSmithKline plc. As the company is an associate company of GlaxoSmithKline plc, the name of the company was changed from SmithKline Beecham Consumer Healthcare Ltd to GlaxoSmithKline Consumer Healthcare Ltd with effect from April 23, 2002. In the year 2002, the company commissioned their new Spray Drier plant at Sonepat and the commercial production was started form July 1, 2002. Also, Gussetted Pouch packing operations were relocated from Nabha factory to a 'State of Art' greenfield facility set up by a contracted third party at Mangaldoi, Assam. As a result of restructuring process, the company's packing facility at Kolkata was closed with effect from September 2002.

The company is a consignment sales agent for marketing, selling & distribution of the brand Iodex with effect form January 1, 2002. In the year 2004, the company has launched Junior and Mother's Horlicks, Ready-to-Drink Horlicks & Boost and Hot Vending Machines. In July 2004, they launched Boost Energy Shake, a new chilled ready-to-drink variant of Boost in Tamil Nadu. Boost Energy Shake will be available in a 200 ml tetra pack.

In the year 2005, the company opened a new secondary manufacturing site (Legacy Foods) at Baddi in Himachal Pradesh. In February 2005, they launched Horlicks in a new Toffee flavour. Toffee Horlicks is the sixth flavour in the Horlicks portfolio. The other flavours are Chocolate, Vanilla, Honey Buzz, Standard and Elaichi.

In the year 2006, the company increased their installed capacity of Malt Based Foods/Malted Foods and Ghee by 3260 MT and 924 MT respectively. With this expansion the total installed capacity of Malt Based Foods/Malted Foods and Ghee increased to 94060 MT and 4000 MT respectively.

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In the year 2007, the company increased their installed capacity of Malt Based Foods and Milkrose Baby Foods by 340 MT and 760 MT respectively. With this expansion, the total installed capacity of Malt Based Foods and Milkrose Baby Foods increased to 94400 MT and 2200 MT respectively.

In the year 2008, the company launched Women's Horlicks, which is specially formulated for women. New Women's Horlicks is scientifically designed with a unique combination of Hemocaltm nutrients which provides 100% of the daily requirement of iron, calcium, Vitamins B2, B6, B12 & C for healthy blood and its normal function. New Women's Horlicks has no added sugar and is low-fat. It is available in two exciting flavors- Chocolate and Caramel in a jar with a unique flip top cap. Also, they launched Active Base and Boost White during the year. In January 2009, the company launched 'Activ Grow', which is a nutritious product launched for infant population. The product will be sold through prescription only.

In the year 2009, the company relaunched Boost with a clinically proven claim to increase stamina by three times recorded a growth of 16.2%. They launched a series of new products. They launched Horlicks Nutribar, which is a nutritious snack. Horlicks Biscuits was relaunched with a new strategy and packaging. The company also launched ActiGrow under the GlaxoNutrition umbrella to tap into the fast growing specialist nutrition segment. The company also entered the noodles segment with the launch of Horlicks Foodles, instant noodles with seasoning.

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CHAPTER 3 STRATEGIC ANALYSIS

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

INTRODUCTION ECONOMIC FEATURES PORTERS FIVE FORCE MODEL DRIVING FORCE STRATEGIC GROUP MAPPING PEST ANALYSES SWOT ANALYSIS CONCLUSION

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3.1 INTRODUCTION OF STRATEGIC ANALYSIS

Strategic analysis is a critical component of the strategic planning process. An integral part of a companys evaluation and control program, it provides managers with a comprehensive assessment of the organizations capabilities and market factors; revealing growth opportunities and vulnerabilities. Armed with this information, managers can more effectively choose from among todays strategic alternatives to create the greatest future reward potential. Strategic analysis is critical for analyzing the competitive context in which an organization operates and for making reasoned and reasonable recommendations for how that organization should position itself and what actions it should take to maximize value creation.

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3.2 ECONOMIC FETURES

Number Of Rivals:
As we seen above, there are major more companies in India which are working in Food And Dairy industry. Yet Food And Dairy industry is dominated by main four companies namely : 1) Nestle India Ltd. 2) Cadbury India Ltd. 3) GlaxoSmithKline Consumer Healthcare Ltd. 4) Jubliant Food works Ltd

Buyer Need and Requirements:

Dairy foods are extremely healthy, filling and tasty. Dairy producers and marketers are making sure the public is aware of the healthfulness of dairy products by marketing their products worldwide. On Monday, March 6, a dairy marketing research symposium was held at the Renaissance Hotel in Fort Worth, in which people from the dairy industry discussed new marketing techniques, as well as new research about the dairy industry. Dairy products that would appeal to the Hispanic population are milk shakes, liquid yogurt, flavored milk, coffee with milk and kid-oriented products. "These are products that are untapped in the United States, but are successful in Latin America," Esch said. "These products should have duel language on the packets." The drivers for people to buy organic produce are freshness, taste and lack of pesticides. The drivers for buying organic dairy products are lack of growth hormones and lack of antibiotics."Three member families have the highest eating index for organic milk," McLaughlin said. "It's the highest in families with kids under six years of age." Dairy producers and dairy processors are doing their best to protect their interests, as they should. But they are going to have to cooperate because their fates are intertwined.

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Degree of Product Differentiation:

While the treatment of an agricultural commodity such as wheat, rice, beef, wool, cheese, maize and wine as a homogeneous good appears to be reasonable in theory, in practice differences in production practices, seeds, geographical locations of production, sanitary and phyto-sanitary measures and food safety requirements make the quality of these commodities (at least, as they are perceived by consumers) different.

The most prominent forms of product differentiation in international trade in recent years have been horizontal and vertical product differentiations which are related to differences in product attributes and quality not just perceived by consumers but also due to differences in factor contents in each product. While significant progress has been made during the 1980s in terms of developing the theoretical framework to guide empirical research aimed at explaining intra industry trade, the progress in applying these models in international trade in food products has been slow.

Product Innovation:
Opening the world Dairy Leaders Forum at the international Dairy Federation (IDF). First we must innovate constantly to respond to rapidly changing and increasingly diverse consumer needs. Secondly, we must harness the power of technology to decrease food waste, maximize food safety and more people with high-quality dairy products. And thirdly we must work together to ensure not only the economic future of our industry, but the social and environmental sustainability of our planet.

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Supply/ Demand Condition:

The Food And Dairy products has traditionally been unique amongst large countries in that it has depended to varying degrees on imports to satisfy consumer demand. Milk as a drink, both in and out of the home, has suffered relentless competition from soft drinks. Their range of product, packaging and availability has increased and the low raw material costs enable them to be extensively promoted. The consumption of soft drinks by children in particular has significantly increased and efforts have been made to modernize the image of milk in order to compete in this sector.

Milk has traditionally had a good image with most consumers, especially house wives ,but in recent years it has seen a decline. Milk is not now seen to be as essential a part of the diet as it used to be and there is concern and misunderstanding about its fat content.

Pace Of Technological Change:

In the Food And Dairy industry opening the world Dairy Leaders Forum at the international Dairy Federation (IDF). First we must innovate constantly to respond to rapidly changing and increasingly diverse consumer needs. Secondly, we must harness the power of technology to decrease food waste, maximize food safety and more people with high-quality dairy products. And thirdly we must work together to ensure not only the economic future of our industry, but the social and environmental sustainability of our planet.

Economics Of Scale:
The dairy industry together with the dairy farms produces essential products to meet nutritional needs of the whole population. This paper defines the dairy industry as the branch of the food industry that includes enterprises processing milk and producing various dairy products.

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3.3 PORTERS FIVE FORCE ANALYSIS

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1) Threats of New Entrants:

In the food and dairy industry there are many restriction of the government and the barriers to entry in the food and dairy industry.

The barriers to entry in the food and dairy industry are initially low and it is easy for small local and regional companies to enter into the market, but the barriers to enter the market nationally are very high. The economies at scale in manufacturing, distribution costs, and marketing at the national level make it very difficult for start-up companies to enter into the national market. There are substantial costs in raising the capital needed to build manufacturing facilities that can mass-produce food and dairy products at the national level.

In the food and dairy industry the buyer demand is growing rapidly so entry threats are strong. In this industry the new comers can expect to earn attractive profit. So, entry threats are stronger.

2) Threats Of Substitutes:
In the food and dairy industry good substitutes are rapidly available or new once are emerging so competitive pressure from the substitute are stronger. In the food and dairy industry end users have low cost is switching to substitute so competitive pressure from substitutes are stronger.

3) Competitive Rivalry among existing players :

In the dairy industry the demand of buyer is growing rapidly so there is rivalry is weaker in food and dairy industry. In the food and dairy industry there is the buyer cost to switching brands are very law. So, it may affect the industry very strongly and in this case rivalry journal stronger.

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3) Bargaining Power Of Supplier:

The food and dairy product is ready available from many suppliers at the going price so supplier bargaining power is weak. In food and dairy industry seller switching cost to alternative suppliers are low. So supplier bargaining power is weak. It is directly affected to industry. In the food and dairy industry the input is easily available from the other supplier so the bargaining power of supplier is low. market

4) Bargaining Power Of Buyer:

The buyer switching cost to competing brands or substitutes products are law so buyer bargaining power is high in this industry. Buyers in the food and dairy industry are greatly affected by the economy and the level of their disposable income. Whenever a buyers disposable income declines, they are more likely to purchase cheaper brands of tobacco, and if a buyers disposable income increases, then they are more likely to buy more expensive brands. Consumers in the India are now increasingly becoming more concerned with health issues. Consumer health awareness has hurt the market for tobacco sellers and has also led to the increase for government regulation.

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3.4 DRIVING FORCE

Future strategies and innovations:It is clear that dairy faces several challenges, especially in the short term. The prospects for the market in the longer term are still quite good. In general, development of resilient farming systems and strategies are required. The strategy has to be able to cope with fluctuations in costs and prices. Looking at the current systems the low input pasture based systems seem to be the best option. This does not mean that other food and dairy product will disappear, but they will have to adapt. The footloose This can also be done by other financial models or by participating in the chain to spread risk. The

development and implementation of these innovations, however, will require time and funds, so they will not be available very soon.

Globalization:Prices of food and dairy commodities were high but dropped at the end of year. The general expectation is that demand will increase more than production so prices will be higher in the future, but bigger fluctuations in price are also expected.

Increase in scale:The increase in scale seems to be an autonomous process, the current situation, however, has taught us that not all food and dairy products are resilient in the face of current circumstances.

Regional trends/driving forces:In western regions there is pressure on the consumption of animal-based food products due to discussion about environmental issues or animal wel-fare, for example. In other regions consumption of food and dairy will increase because the economy is growing and income of especially poor people will increase.

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Abundant availability of raw material:India has varied agro climatic conditions it has a wide-ranging and large raw material base suitable for food and dairy industries. It has a vast coastline of 8000 km, vast marine land with 10 major ports. India produces annually 90 million tone of milk (highest in the world), 150 million tone of fruits and vegetables (second largest), 485 million livestock (largest), 204 million tones food grain (third largest), 6.3 million tones fish (third largest), 489 million poultry and 45,200 million eggs. India's agricultural production base is huge.

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3.5 STRATEGIC GROUP MAPPING

A strategic group is a concept used in strategic management that groups companies within an industry that have similar business models or similar combinations of strategies. For example, the restaurant industry can be divided into several strategic groups including fast-food and fine-dining based on variables such as preparation time, pricing, and presentation. The number of groups within an industry and their composition depends on the dimensions used to define the groups. Strategic management professors and consultants often make use of a two dimensional grid to position firms along an industry's two most important dimensions in order to distinguish direct rivals (those with similar strategies or business models) from indirect rivals. Strategy is the direction and scope of an organization over the long term which achieves advantages for the organization while business model refers to how the firm will generate revenues or make money. Strategic Group Analysis

Strategic Group Analysis (SGA) aims to identify organizations with similar strategic characteristics, following similar strategies or competing on similar bases. Such groups can usually be identified using two or perhaps three sets of characteristics as the bases of competition.

Examples of Characteristics

Extent of product (or service) diversity Extent of Geographic coverage Number of Market segments served Distribution Channels used Extent of Branding Marketing Effort Product (or service) quality Pricing policy

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 Use of Strategic Group Analysis

This analysis is useful in several ways:

Helps identify who the most direct competitors are and on what basis they compete.

Raises the question of how likely or possible it is for another organization to move from one strategic group to another.

Strategic Group mapping might also be used to identify opportunities. Can also help identify strategic problems.

There are five steps to make strategy group:

1. Identify two important competitive characteristics that strategically differentiate firms in an industry from one another: So here there are two factors identify are reported net profit and net assets of the company they are taken on X axis and Y axis

2. Plot the firm in two variable In the chart sawn different companies are plotted in X axis and Y axis in respect to their performance.

3. Draw circles around the firms that are cluster together. In this step actually find out the close firms which are nearby similar factor that we have taken in X, Y axes.

4. Indicate potential movement of firms with arrows. At the last have to saw the potential movement means the strategy for future movement.

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(Year 2012) Britannia Industries Ltd Glaxosmithkline Consumer Healthcare Ltd Jubliant foodworks ltd Cadbury India ltd Nestle India ltd

Reported net profit 233.87

Net sales 17.21

436.76

951.9

135.11 303.46 1067.93

-111.78 221.61 -2.93

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3.6 PEST ANALYSIS

PEST analysis is concerned with the key external environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PEST influences is a useful way of summarizing the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences.

SOCIAL FORCES

TECH NOL OGIC AL

Business Environment

POLIT ICAL FORC ES

ECONOMIC FORCES

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P:-Political E:-Economical S:-Social T:-Technological

Political Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, political stability .Political factor may also include goods and services which the government wants to be provide or be provided (merit goods) and those that the government does not want to be provided(demerit goods or merit bads).Further more governments have great influence on the health ,education and infrastructure of nation . Government regulation

Economic Economic factors include economic growth interest rate, exchange rates and the inflation rate. These factors have major impact on how businesses operate and make decisions for example, interest rates affect a firms cost of capital and there for to what extent a business grows and expands. Exchange rates affect the cost of exporting goods and the supply and price of imported goods in an economy. Tax Rate Service Tax

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Social
Social factor include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for companys products and how that company operates. for example, an aging population may imply a smaller and less willing workforce (thus increasing the cost of labour).furthermore, companies may change various management strategies to adapt to this social trends(such as recruiting older works).

Technological Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry. Furthermore, technological shifts can affect costs, quality and lead to innovation. Technologies used in industry

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3.7 SWOT Analysis

STRENGTHS

Cost of production in India is lower by about 40 percent. Large number of research institutions such as CFTRI,CIFT, NDRI, and NRDC. Infrastructure development (30 Mega Food Parks) Income tax rebate for setting up of new agro-processing industries Cumulative inflow of FDI into the food processing sector Growing number of fast food chains. The GOI is in the process of enacting a Food Safety and Standards Bill A slow but steady transformation of the retail food sector in cities. India has the second largest arable land in the world. It has diverse agro-climatic zones. Competitive pricing also enables penetration in the rural markets.'

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WEAKNESSES
Poor infrastructure still poses a serious challenge to FDI. Heavily bureaucratic investment processes, government inefficiency, and corruption have also discouraged foreign investors. India is still not holding its laws high for protecting copyright issues. Divergent food habits. High tariffs, dated food laws, and unscientific sanitary and phytosanitary restrictions. Lack of grading and standards, poor distribution channels, and onerous government policies. Low penetration of processed food in domestic markets. Out of the entire agricultural produce of India only 1% is converted into value added products. Lacks economies of scale, skilled manpower.

OPPORTUNITIES

GOI, in line with its Vision 2015 for the food processing sector,inits11Th Five Year Plan proposes to give greater thrust on infrastructure development. GOI envisages an investment of Rs. 1 trillion in the industry over the next five years, mostly from private sector and financial institution. Rising disposable income levels. Increasing urbanization and exposure to Western culture. Growing health consciousness among the middle class. Growing consumerism. Changing age profile. Increasing availability of cheap consumer credit. India is in the middle of two big markets the Middle East and the Far East and we can help French companies reach out to these markets.

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THREATS
FDI and other routes of investments by MNCs pose a potential threat to a large number of Indian players in the coming years. Gradual decrease in no. of farmers practicing agriculture. Religious sentiments for different foods.

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3.8 KEY FACTORS FOR FUTURE COMPETITIVE SUCCESS

The key success factors of the food-dairy industry are; Market position Market share and the customer profile are the main features of any food-dairy company to define a market position. Indian food and industry is characterized by fragmentation, particularly in the downstream segment, with a large number of unorganized players. Customer Profile Customer profile in any segment of the food-dairy industry determines its business position The intensity of the competition is influenced by the demand and supply of the companys product and their concentration in different geographies. The demand pattern of the food-dairy industry. Product mix The nature of products produced, industries sold to, and the mix between commodity and value-added products are an important part of the rating criteria. Value product offers high realisation of the company which in turn boost the company profitability. Technology It was recognized that small and medium enterprises not only need greater awareness but also technical, financial and institutional support in order to develop and adopt efficient technologies. The art of using efficient technology can enable company to achieve a competitive cost position. Operating Efficiencies Given the industry characteristics of underlying pricing volatility, limited producer pricing power, sensitivity to underlying economic conditions, and a relatively high fixed-cost base, particularly at the integrated producers; elements that are within a company's ability to manage, such as cost structure and operating efficiency, are important considerations in the rating analysis. Factors that measure costs and 51 industry is highly cyclical according to the end user

operating efficiency help in assessing a company's ability to operate through economic downturns and its ability to not only continue servicing its debt, but meet other obligations, which can vary extensively on a geographic basis due to regulatory, environmental compliance and other differences.

The cost structures of the integrated food-dairy companies or the backward integration companies are different from the secondary food-dairy product producers. The raw material volatility does not materially impact the integrated food-dairy product producer as they have control over prices.

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3.9 Product Life Cycle (PLC)

A new product passes through set of stages known as product life cycle. Product life cycle applies to both brand and category of products. Its time period vary from product to product. Modern product life cycles are becoming shorter and shorter as products in mature stages are being renewed by market segmentation and product differentiation. Companies always attempt to maximize the profit and revenues over the entire life cycle of a product. In order to achieving the desired level of profit, the introduction of the new product at the proper time is crucial. If new product is appealing to consumer and no stiff competition is out there, company can charge high prices and earn high profits.

Stages of Product Life Cycle

Product life cycle comprises four stages: 1. Introduction stage 2. Growth stage 3. Maturity stage 4. Decline stage

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S a l e s

Maturity Growth Introduction

Decline

Time e

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 Introduction stage
Product is introduced in the market with intention to build a clear identity and heavy promotion is done for maximum awareness. Before actual offering of the product to customers, product passes through product development, involves prototype and market tests. Companies incur more costs in this phase and also bear additional cost for distribution. On the other hand, there are a few customers at this stage, means low sales volume. So, during introductory stage companys profits shows a negative figure because of huge cost but low sales volume. At introduction stage, the company core focus is on establishing a market and arising demand for the product. So, the impact on market mix is as follows: Product Branding, Quality level and intellectual property and protections are obtained to stimulate consumers for the entire product category. Product is under more consideration, as first impression is the last impression. Price High(skim) pricing is used for making high profits with intention to cover initial cost in a short period and low pricing is used to penetrate and gain the market share. company choice of pricing strategy depends on their goals. Place Distribution at this stage is usually selective and scattered. Promotion At introductory stage, promotion is done with intention to build brand awareness. Samples/trials are provided that is fruitful in attracting early adopters and potential customers. Promotional programs are more essential in this phase. It is as much important as to produce the product because it positions the product.

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 Growth Stage
In this stage, companys sales and profits starts increasing and competition als o begin to increase. The product becomes well recognized at this stage and some of the buyers repeat the purchase patterns. During this stage, firms focus on brand preference and gaining market share. It is market acceptance stage. But due to competition, company invest more in advertisement to convince customers so profits may decline near the end of growth stage. Affect on 4 p's of marketing is as under: Product Along with maintaining the existing quality, new features and improvements in product quality may be done. All this is done to compete and maintain the market share. Price Price is maintained or may increase as company gets high demand at low competition or it may be reduced to grasp more customers. Distribution Distribution becomes more significant with the increase demand and acceptability of product. More channels are added for intensive distribution in order to meet increasing demand. On the other hand resellers start getting interested in the product, so trade discounts are also minimal. Promotion At growth stage, promotion is increased. When acceptability of product increases, more efforts are made for brand preference and loyalty.

Maturity stage
At maturity stage, brand awareness is strong so sale continues to grow but at a declining rate as compared to past. At this stage, there are more competitors with the same products. So, companies defend the market share and extending product life cycle, rather than making the profits, By offering sales promotions to encourage retailer to give more 56

shelf space to the product than that of competitors. At this stage usually loyal customers make purchases. Marketing mix decisions include: Product At maturity stage, companies add features and modify the product in order to compete in market and differentiate the product from competition. At this stage, it is best way to get dominance over competitors and increase market share. Price Because of intense competition, at maturity stage, price is reduced in order to compete. It attracts the price conscious segment and retain the customers. Distribution New channels are added to face intense competition and incentives are offered to retailers to get shelf preference over competitors. Promotion Promotion is done in order to create product differentiation and loyalty. Incentives are also offered to attract more customers.

Decline stage
Decline in sales, change in trends and unfavorable economic conditions explains decline stage. At this stage market becomes saturated so sales declines. It may also be due technical obsolescence or customer taste has been changed. At decline stage company has three options: 1. Maintain the product, Reduce cost and finding new uses of product. 2. Harvest the product by reducing marketing cost and continue offering the product to loyal niche until zero profit. 3. Discontinue the product when theres no profit or a successor is available. Selling out to competitors who want to keep the product.

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At declining stage, marketing mix decisions depends on companys strategy. For example, if company want to harvest, the product will remain same and price will be reduced. In case of liquidation, supply will be reduced dramatically.

Life Cycle Stage of Food and Dairy Industry:

The industry has exhibited a growth of about 30% over the past four years and is expected to grow at 25% for the next two to three years, making it one of the fastest growing segments in the transportation of cargo. It is forecasted to reach 40% by 2017. so from the above figure we can analyze that in this particular industry, the stage of introduction has been already completed. It is in its growing stage. This shows increasing competition, demand, and requires higher investment on the other hand it will also give good return to market player of the industry.

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3.10 CONCLUSION
Strategy Analysis Strategy analysis may be looked upon as the starting point of the strategic management process. It consists of the advance work that must be done in order to effectively formulate and implement strategies. Many strategies fail because managers may want to formulate and implement strategies without a careful analysis of the overarching goals of the organization and without a thorough analysis of its external and internal environment.

There are many things and analysis are important in strategy analysis. According to strategy analysis there are many models are also useful like Porters five force model, PEST analysis, Industries strength Weaknesses, Opportunities and Threats, Strategy group mapping, Driving force. So it is the one of the best part of report.

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CHAPTER-4 FINANCIAL ANALYSIS

4.1 4.2 OBJECTIVE OF FINANCIAL ANALYSIS RATIO ANALYSIS 4.2.1 Current Ratio 4.2.2 Debt Equity Ratio 4.2.3 Inventory Turnover Ratio 4.2.4 Debtor Turnover Ratio 4.2.5 Fixed Assets Turnover Ratio 4.2.6 Return On Capital Employee 4.2.7 Return On Net worth 4.2.8 P/E Ratio 4.3 TREND ANALYSIS 4.3.1 Total share holder fund 4.3.2 Net sale 4.3.3 Profit after tax 4.4.4 total assets

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4.1 OBJECTIVE OF FINANCIAL ANALYSIS

The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Managers require Financial Statements to manage the affairs of the company by assessing its financial performance and position and taking important business decisions. Shareholders use Financial Statements to assess the risk and return of their investment in the company and take investment decisions based on their analysis. Prospective Investors need Financial Statements to assess the viability of investing in a company. Investors may predict future dividends based on the profits disclosed in the Financial Statements. Furthermore, risks associated with the investment may be gauged from the Financial Statements. For instance, fluctuating profits indicate higher risk. Therefore, Financial Statements provide a basis for the investment decisions of potential investors. Financial Institutions (e.g. banks) use Financial Statements to decide whether to grant a loan or credit to a business. Financial institutions assess the financial health of a business to determine the probability of a bad loan. Any decision to lend must be supported by a sufficient asset base and liquidity. Suppliers need Financial Statements to assess the credit worthiness of a business and ascertain whether to supply goods on credit. Suppliers need to know if they will be repaid. Terms of credit are set according to the assessment of their customers' financial health. Customers use Financial Statements to assess whether a supplier has the resources to ensure the steady supply of goods in the future. This is especially vital where a customer is dependant on a supplier for a specialized component. Employees use Financial Statements for assessing the company's profitability and its consequence on their future remuneration and job security.

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Competitors compare their performance with rival companies to learn and develop strategies to improve their competitiveness. General Public may be interested in the effects of a company on the economy, environment and the local community. Governments require Financial Statements to determine the correctness of tax declared in the tax returns. Government also keeps track of economic progress through analysis of Financial Statements of businesses from different sectors of the economy. Tools of financial analysis Ratio analysis Trend analysis.

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4.2 RATIO ANALYSIS:Ratio analysis involves establishing a relevant financial relationship between components of financial statement. Two companies may have earned the same amount of profit in a year, but unless the profit is related to sales or total assets, it is not possible to conclude which of them is more profitable. Ratio analysis helps in identifying significant relationship between financial statement items for further investigation. If used with understanding of industry factor and general economic conditions, it can be powerful tool for recognizing a companys strengths as well as its potential trouble spots.

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4.2.1 CURRENT RATIO-:

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry. Jubliant Nestle Year India 2009 2010 2011 2012 0.63 0.62 0.57 0.51 Glaxo Cadbury food Britanniya works 1.17 1.05 1.22 0.89 6.08 0.73 0.5 0.37 Total 11.4 5.41 5.39 4.99 Average 2.28 1.082 1.078 0.998

smithkline India 2.41 1.91 1.86 1.91 1.11 1.1 1.24 1.31

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Interpretation:-From the above graph we can conclude that current assets ratio is decreasing from year 2009 to 2012.in year 2009 the Average current ratio is 2.28%.than it is decreasing and 1.08 In year 2010.Same as it is decreasing and 0.998 in 2012.

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4.2.2 Debt-equity ratio The debt-equity ratio shows the proportion of long term external equities and internal equities I.e. proportion of funds provided by long term creditors and that provided by shareholders or proprietors. The debt equity establishes the relationship between outside long term liabilities and owners fund.

Jubliant Nestle Year India 2009 2010 2011 2012 0 0.1 0.46 0.66 Glaxo Cadbury food Britanniya works 0.19 0.4 0.43 0.04 0.64 0.06 0.05 0 Total 0.88 0.59 0.95 0.71 Average 0.176 0.118 0.19 0.142

smithkline India 0 0 0 0 0.05 0.03 0.01 0.01

Interpretation We can conclude from the graph that Debt Equity ratio is changing between 2009 to 2012. In 2009 average Debt-equity ratio is 0.17% than in year 2010 it is 0.11% which is decrease from year 2009.after year 2010 it is increasing in year 2011 and it is 0.19% than again it is decreasing in year 2012 ,debt-equity ratio is 0.14 %in year 2012.

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4.2.3 Inventory turnover ratio

Inventory turn over ratio indicates the relationship between total sales and invetory. The ideal ratio is more than 1. It can indicates how much time invetories are turn over based on sales. Above ratio are ideally for industry.

Glaxo Nestle Year 2009 2010 2011 2012 India 11.19 11.87 11.75 11.64 smithkli ne 7.46 8.41 8.54 9.1

Jublia Cadbur Britanniy nt food y India 9.68 9.7 9.19 7.74 a 5.9 2.96 4.74 10.51 works Total Averag e 21.954 19.338 19.312 21.248

75.54 109.77 63.75 62.34 96.69 96.56

67.25 106.24

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Interpretation From the above graph we can conclude that inventory turnover ratio is high in year 2009 and it is continuously decreasing in year 2010 and 2011. After year 2011 inventory turnover ratio is increasing and it 21.24% in this year.

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4.2.4 Debtor turnover ratio This ratio indicates the speed with which the amount is collected from debtors. The higher the ratio, the better it is, since it indicates that amount from debtors is being collected more quickly. The more quickly the debtors pay, the less the risk from baddebts, and so the lower the expenses of collection and increase in the liquidity of the firm. Jubliant Nestle Year India 2009 2010 2011 2012 95.14 100.04 86.14 84.87 Glaxo Cadbury food Britanniya works 37.23 17.08 31.03 61.63 230.83 191.33 192.86 213.75 Total 498.05 441 420.05 468.7 Average 9.961 8.82 8.401 9.374

smithkline India 54.29 59.48 38.94 31.71 80.56 73.07 71.08 76.74

Interpretation -: From the above we can conclude that debtor turnover ratio is 9.96% in year 2009 then it is decreasing in year 2010 . in year 2011 debtor turnover ratio is 8.82%which is higher than 2010 and after year 2011 it is increasing in year 2012 ,debtor turnover ratio is9.96% in year 2012.

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4.2.5 Fixed Assets Turnover Ratio The Fixed asset turnover ratio indicates the relationship between turnover and utilization of fixed assets like building, plant and machinery, land etc. Higher the ratio, higher the utilization of fixed assets. Meanwhile industry is able to utilize more and more fixed assets to generate sales. Jubliant Nestle Year India 2009 2010 2011 2012 3.43 3.65 3.49 2.47 Glaxo Cadbury food Britanniya works 2.25 0.89 1.48 3.12 2.39 2.62 2.99 2.94 Total 14.88 14.58 16.45 17.82 Average 2.976 2.916 3.29 3.564

smithkline India 3.69 4.2 4.71 5.21 3.12 3.22 3.78 4.08

Interpretation -: From the above graph we can see that in year 2009 fixed asset turnover ratio of this industry is 2.97% and in the year 2010 it is 2.91% ,after the year 2011 it is increasing ,and it is 3.29%.fixed asset turnover ratio is 3.56% in year 2012 which is higher than 2011. 70

4.2.6 ROCE Capital Employed as shown in the denominator is the sum of shareholders' equity and debt liabilities; it can be simplified as (Total Assets Current Liabilities). Instead of using capital employed at an arbitrary point in time, analysts and investors often calculate ROCE based on Average Capital Employed, which takes the average of opening and closing capital employed for the time period.

Jubliant Nestle Glaxo Cadbury food Year India smithkline India Britanniya works Total Average 174.16 42.96 45.3 20.06 23.9 306.38 61.276 2009 2010 2011 2012 158.6 69.91 45.1 48.73 50.23 49.06 39.09 41.78 30.34 6.22 10.33 52.35 49.3 58.17 52.47 301.94 230.42 229.32 60.388 46.084 45.864

ROCE
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60
percentage

50 40 30 20 10 0
2009 2010 year 2011 2012 ROCE

Interpretation From the above graph we can see that ROCE is 21.276% in 2009.in the year 2010 it is 60.38%.after 2010 it is decreasing and it is 46.08.and in 2012 it is also decreasing. Which is 45.86.

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4.2.7 Return on Net worth Return on net worth used in finance as a measure of a companys profitability. It prevails how much profit a company. generates with the money that the equity shareholders have invested. The ratio is useful for comparing the profitability of a company to that of other firms in the same industry.

Jubliant Nestle Glaxo Cadbury food Year India smithkline India Britannia works Total Average 27.95 37.91 17.4 25.83 233.31 46.662 2009 124.22 2010 2011 2012 113.97 90.31 69.52 32.15 33.76 34.87 33.06 33.86 25.93 6.1 9.62 34.57 41.17 226.45 43.01 210.56 36.73 201.62 45.29 42.112 40.324

Interpretation From the above graph we can conclude that in 2009 it is 46.66%,after that it is decreasing in 2010 which is 45.29%.than it is increasing in 2011 ,which is 42.11%.and in the 2012 it is higher than the 2011,w2hich is 40.32%. 72

4.2.8 P/E Ratio In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story by itself. It's usually more useful to compare the P/E ratios of one company to other companies in the same industry, to the market in general or against the company's own historical P/E. It would not be useful for investors using the P/E ratio as a basis for their investment to compare the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has much different growth prospects.

Nestle Year 2009 2010 2011 2012 India 42.69 49.35 45.4 48.5 Galaxo 24.86 36.71 32.26 39.62 Cadbury Britannia jubilant 0 0 0 0 35.85 33.35 41.58 28.93 60.55 48.33 71.97 60.08 total 163.95 167.74 191.21 177.13 Avg 32.79 33.548 38.242 35.426

P/E RATIO
39 38 37 36 35 34 33 32 31 30 2009 2010 year 2011 2012

Interpretation From the above graph we can see that in 2009it is decreases than the 2010.which is 32.79%.in 2010 it is 33.54%.and in 2011 it is higher than the 2009 and 2010.which is 38.24.and in the 2012 it is decreasing .which is 35.42%. 73

percentage

4.3 TRAND ANALYSIS

4.3.1 Total shareholder fund

Company Britannia Cadbury Glaxo SmithKline Jubliant Nestle India Average 2009-10 2010-11 2011-12 2012-13 1 1.14 1.31 1.63 1 1.38 1.93 2.48 1 1.06 1.26 1.5 1 1.63 2.55 3.73 1 1.47 2.19 3.09 1 1.336 1.848 2.486

Interpretation:The total shareholder fund is very low in first year. After first year total shareholders fund will be increase in 2010 and it will be continuously increase in the next year.

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4.3.2 Net sales

Company Britannia Cadbury Glaxo SmithKline Jubliant Nestle India Average 2009-10 2010-11 2011-12 2012-13 1 1.24 1.46 1.65 1 1.29 1.74 2.1 1 1.2 1.44 1.66 1 1.43 2.14 2.96 1 1.22 1.47 1.63 1 1.276 1.65 2

Interpretation:The total shareholder fund is very low in first year. After first year total holders fund will be increase in 2010 and it will be continuously increase in the next year.

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Profit after tax

Company 2009-10 2010-11 2011-12 2012-13 Britanniya 1 1.24 1.6 2.01 Cadbury 1 1.11 1.58 1.61 Galaxo SmithKline 1 1.28 1.53 1.88 Jubliant 1 2.18 3.2 4.1 Nestle India 1 1.25 1.47 1.63 Average 1 1.412 1.876 2.246

Interpretation:In the above graph we can say that profit after tax is 1 in year 2009. After 2009 the profit after tax is increase in 2010. After 2010 profit after tax is continuously increase.

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4.3.3 Total asset

Company Britannia Cadbury Galaxo SmithKline Jubliant Nestle India Average 200910 2010-11 2011-12 2012-13 1 1.24 1.32 1.23 1 1.37 2 2.53 1 1 1 1 1.06 1.58 1.47 1.344 1.33 2.45 5.39 2.498 1.6 3.51 6.66 3.106

Interpretation:In the above graph we can say that the total assets will be continuously increase in
2009-2012. The total assets is increase in 2012 and then it will be increasing next year

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CHAPTER-5 BUSINESS PLAN

5.1 5.2 5.3 5.4 5.5 5.6

Project at a glance Company description Selection of location Industry and competitive analysis Market and sales strategy Operation, management and organisation

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5.1 PROJECT AT GLANCE: NAME OF UNIT REGISTERED OFFICE

ONLY HERE 201, Abhishek Complex, Near Ankur cross road, Naranpura, Ahmedabad- 380013

SIZE OF UNIT FORM OF ORGANIZATION NAME OF PARTNERS

Small Scale Industry Partnership Firm.

Zalak Prajapati Vishal Patel Dhara Shah Priyanka Prajapati Shikha Modi Vishesh Shah

NAME OF PRODUCT

Bakery Products

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5.2 Company Description:

Name of the company Location ONLY HERE Bakery Products Plot no. 27 Naroda GIDC Naroda, Ahmedabad. Product Market for Sale: Bakery Products Ahmedabad, Anand ,Nadiad, Baroda

Company Objective:
The objectives for the first three years of operation include:

To create a start-up business whose primary goal is to exceed customer's expectations.

To increase the number of clients through superior performance. To develop a sustainable business, surviving off of its own cash flow.

Mission ONLY HEREs mission is to provide the customer with quality of Bakery product that Customers like. We exist to attract and maintain customers. Our product test and quality will exceed the expectations of our customers. Vision To be leading Our Bakery Products in the Gujarat by gaining more than 30% market share with variety of Products for the whole family.

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5.3 SELECTION OF LOCATION: Factory location is the decision regarding the geographical situation of the plant. This decision is very crucial because it is not easily reversible and involves huge amount of investment. The factory location plays an important role in the success or failure of the business. But this design is affected by many factors which are kept in mind while selecting the location. I have selected the following site for the manufacturing of Bakery Products. Location Plot no. 27 Naroda GIDC Naroda, Ahmedabad.

The correctness of this decision regarding the site can be justified on the following points . 1. Industrial area: The factory is situated at the Naroda GIDC. As our Business of Bakery product manufacturing and wholesaler, it will be easy for us to get customers and suppliers nearby area which help to keep our cost low.

2. Transportation Easiness: As we have business located in the industrial area near to city area market, the Transportation is easy.

3. Market proximity: It is very important as being businessman to locate manufacturing plant near to market so that it is easy to fulfill the requirement of customers quickly. We get Retailers from near area of our business.

4. Rapid Sales:

Now a days Bakery Products are in trend. Because it is most

probably use in fast food. The sales of our product are thus increased rapidly.

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5. Opportunity to grow: We can expand our business by doing backward integration or Forward integration by selecting Ahmedabad, Aanand, Nadiad, Baroda city as our location.

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5.4 Industry and competitive analysis

5.4.1 Analysis of textile industry: India has a huge; relatively inexpensive and skilled labor force. It has impressive design expertise It is among the world's largest producers of fabrics and it produces a wide range of apparel articles and is considered a particularly competitive source for home textiles (bed linens, towels, etc). One of the largest producers of cotton yarn, jute, silk and manmade fabrics. Availability of Low Cost and Skilled Manpower provides competitive advantage to industry. Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry.

5.4.2 Competitors in the market Our competition is in internal market after sometime we will go for external market.

5.4.3 How to compete To provide best quality bakery items. To provide in variety of bakery items. Advertising Give product for testing

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5.5 Marketing and sales strategy:

5.5.1 Where to sale: Ahmedabad, Nadiad, Anand and Baroda

5.5.2 Marketing We will be dealing with the intermediary sellers more than with general public, so direct business to business sales will be more important than general marketing and Advertising. Segmentation:

A company discovers different needs and groups in the market place and targets that needs and groups that it can satisfy in a superior way. The Marketer than decides, which segments present the greatest opportunity which is target market. Geographic Segmentation: Here, we are focusing in our State only and especially in major area of Ahmedabad, Anand, Nadiad, Baroda. Region: Initially we are focusing on Ahmedabad, Anand, Nadiad and Baroda. City: Ahmedabad, Nadiad, Anand and Baroda .

Demographic Segmentation: Life cycle stage: Supplier, whole seller, retailer. class: Lower to Upper Class.

Psychographics Segmentation: Lifestyle: Any time you wont Personalize: want to experience the best.

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5.6 Operation, Management and Organization

5.6.1 supply chain: For the first few years, supply chain will be as follow.

Purchase of Raw material

Production

Wholesaler

Retailer

Customers

5.6.2 Promotional activity:

We produce sugar free chocolate, sugar free cake, cookie, bread. Direct Marketing will be use in our ONLY HERE Bakery Items. Internet Marketing will be use in our ONLY HERE Bakery Items. Sales Promotion activity like trade oriented will be use in our ONLY HERE Bakery Items.

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5.7 Finance

5.7.1 Projected Profit and Loss A/c

Income Sales revenue -Excise duty Net Sales Expenditure Material consumed Salary Electricity bill Depreciation Interest Transportation exp. Other expenses Total Expenditure Profit/Loss

2013-14 6350000 762000 5588000

2014-15 2015-16 2016-17 2017-18 9380000 12500000 14890000 16795000 1125600 1500000 1786800 2015400 8254400 11000000 13103200 14779600 6226500 6952900 7333500 612500 612500 680000 412270 477800 509800 500000 500000 500000 580000 540000 520000 1182000 1300000 1256000 231300 247000 333300 9744570 10630200 11132600 1255430 2473000 3647000

3600000 4380000 500000 558000 300000 356400 500000 500000 650000 650000 611100 981400 180000 217200 6341100 7643000 -753100 611400

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5.7.2 Cash Flow Statement

Year 2013-14 2014-15 2015-16 2016-17 2017-18

Net profit/loss -1428100 -363600 846630 2067100 3300300

Depreciation 500000 500000 500000 500000 500000

Total -928100 136400 1346630 2567100 3800300

15% 0.87 0.756 0.658 0.572 0.497

present value of cash flow -807447 103118.4 886082.54 1468381.2 1888749.1

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5.7.3 Projected Balance Sheet

Liabilities Owned capital

Vishesh Shah Vishal Patel Dhara Shah SikhaModi PriyankaPrajapati ZalakPrajapati

2013-14 500000 500000 500000 500000 500000 500000 3500000 6500000 5000000 500000 4500000 1425000 365000 960000 2750000 750000 2000000 6500000

2014-15 500000 500000 500000 500000 500000 500000 3500000 6500000 4500000 500000 4000000 1972000 682000 843000 3497000 997000 2500000 6500000

2015-16 500000 500000 500000 500000 500000 500000 2800000 5800000 4000000 500000 3500000 2682500 881000 1010200 4573700 2273700 2300000 5800000

2016-17 500000 500000 500000 500000 500000 500000 2400000 5400000 3500000 500000 3000000 3250000 1011600 982500 5244100 2844100 2400000 5400000

2017-18 500000 500000 500000 500000 500000 500000 2200000 5200000 3000000 500000 2500000 3711000 1200800 1152500 6064300 3364300 2700000 5200000

Long term loan Total Liability Assets Gross block -Depreciation Net Debtors Cash/bank Inventories Total Current Assets Current Liability(creditors) Net current Assets Total Assets

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CHAPTER-6 FINDINGS AND CONCLUSION

6.1 6.2

FINDINGS CONCLUSION

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6.1

FINDINGS
We find that current assets ratio is decreasing in year 2009 the Average current ratio is 2.28%.than it is decreasing and 1.08 In year 2010.Same as it is decreasing and 0.998 in 2012. We find from the graph that Debt Equity ratio is changing between 2009 to 2012. In 2009 average Debt-equity ratio is 0.17% than in year 2010 it is 0.11% which is decrease from year 2009.after year 2010 it is increasing in year 2011 and it is 0.19% than again it is decreasing in year 2012 ,debt-equity ratio is 0.14 %in year 2012. We find that inventory turnover ratio is high in year 2009 and it is continuously decreasing in year 2010 and 2011. After year 2011 inventory turnover ratio is increasing and it 21.24% in this year. We find that debtor turnover ratio is 9.96% in year 2009 then it is decreasing in year 2010 . in year 2011 debtor turnover ratio is 8.82%which is higher than 2010 and after year 2011 it is increasing in year 2012 ,debtor turnover ratio is9.96% in year 2012. We see that in year 2009 fixed asset turnover ratio of this industry is 2.97% and in the year 2010 it is 2.91% ,after the year 2011 it is increasing ,and it is 3.29%.fixed asset turnover ratio is 3.56% in year 2012 which is higher than 2011. We see that ROCE is 21.276% in 2009.in the year 2010 it is 60.38%.after 2010 it is decreasing and it is 46.08.and in 2012 it is also decreasing. which is 45.86. We find that in 2009 it is 46.66%,after that it is decreasing in 2010 which is 45.29%.than it is increasing in 2011 ,which is 42.11%.and in the 2012 it is higher than the 2011,w2hich is 40.32%. we find that in 2009 it is decreases than the 2010.which is 32.79%.in 2010 it is 33.54%.and in 2011 it is higher than the 2009 and 2010.which is 38.24.and in the 2012 it is decreasing which is 35.42%. The total shareholder fund is very low in first year. After first year total shareholders fund will be increase in 2010 and it will be continuously increase in the next year.

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 The total shareholder fund is very low in first year. After first year total shareholders fund will be increase in 2010 and it will be continuously increase in the next year. We find that profit after tax is 1 in year 2009. After 2009 the profit after tax is increase in 2010. After 2010 profit after tax is continuously increase. In the above graph we can say that the total assets will be continuously increase in 2009-2012. The total assets is increase in 2012 and then it will be increasing next year.

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6.2 CONCLUSION
After preparing a MRP-I report on In Depth Study of Food And Dairy Industry, we have finally reached to the following conclusions; As the apparel manufacturing industry has become more labour intensive and requires less capital investment. The Food And Dairy Industry accounts for over 20 percent of industrial production and is closely linked with the agricultural and rural economy. With liberalization in investment and the subsequent the removal of quantitative restrictions on several Food and Dairy products, the Indian market now has the presence of several international brands. India is recognized as a biggest and fastest growing market in the world for milk and milk products. So all the countries are looking at Indian dairy industry markets for exports. As per the WTO norms, the milk produced in India is yet to get the certificate for high quality. As per GATT agreement, the export subsidy is reducing. Because of this, we are expecting major changes in dairy industry of North America, Europe and Australia. India may also get some advantage in this situation. After reduction in subsidies given by other countries, India would be able to compete with their products efficiently on price in international markets.

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BIBLIOGRAPHY
http://www.scribd.com/doc/68462150/Dairy-Industry http://kids.britannica.com/comptons/article-199398/dairyindustryhttp://www.indianmirror.com/indian-industries/dairy.html http://www.rncos.com/Report/IM368.htm http://www.dsir.gov.in/reports/ittp_tedo/agro/AF_Animals_Milk_Dairy_Intro.pdf http://www.unnati-dairy.com/indian_dairy_scenario.htm http://www.dairyfarmguide.com/scenario-of-dairy-production-0100.html http://www.nddb.org/English/statistics/Pages/Statistics.aspx http://www.thefinancialexpress-bd.com/more.php?date=2012-03-10&news_id=122867
http://business.mapsofindia.com/food-industry/dairy/

www.Capitaline.com www.nestleindia.com www.cadburyindia.com www.jubliantfoodworks.com www.glaxosmith.com www.britanniainds.com

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ANNEXURE Profit & Loss A/C Of Britannia Industry Ltd

Britannia Industries Ltd (Rs in Crs) Year Mar 13(12) Mar 12(12) 5,032.81 58.62 4,974.19 58.53 4.79 5,037.51 3,184.54 40.1 145.87 448.16 725 156.08 0 4,699.75 337.76 38.07 299.69 47.32 252.37 63.71 0 1.92 186.74 18.87 167.87 0 185.29 0 136.68 235.35 Mar 11(12) 4,255.79 32.27 4,223.52 48.92 17.89 4,290.33 2,782.23 29.55 119.93 359.94 614.6 103.68 0 4,009.93 280.4 37.75 242.65 44.59 198.06 39.95 0 12.82 145.29 15.57 129.72 0 144.76 0 104.76 185.29 Mar 10(12) 3,426.64 23.18 3,403.46 50.83 21.35 3,475.64 2,184.97 22.38 99.94 313.76 558.28 129.9 0 3,309.23 166.41 8.21 158.2 37.54 120.66 20.67 0 -16.52 116.51 -28.15 144.66 0 109.6 0 81.35 144.76 Mar 09(12) 3,142.89 30.68 3,112.21 84.59 19.61 3,216.41 1,930.00 21.47 90.01 289.32 464.16 139.58 0 2,934.54 281.87 16.01 265.86 33.46 232.4 34.38 5.3 12.32 180.4 -10.44 190.84 0 60 0 130.8 109.6 94

INCOME : Sales Turnover 5,700.77 Excise Duty 85.28 Net Sales 5,615.49 Other Income 55.47 Stock Adjustments 10.16 Total Income 5,681.12 EXPENDITURE : Raw Materials 3,528.60 Power & Fuel Cost 52.27 Employee Cost 143.5 Other Manufacturing Expenses 530.84 Selling and Administration Expenses 825.68 Miscellaneous Expenses 173.23 Less: Pre-operative Expenses 0 Capitalised Total Expenditure 5,254.12 Operating Profit 427 Interest 37.74 Gross Profit 389.26 Depreciation 57.08 Profit Before Tax 332.18 Tax 92.85 Fringe Benefit tax 0 Deferred Tax 5.46 Reported Net Profit 233.87 Extraordinary Items 15.99 Adjusted Net Profit 217.88 Adjst. below Net Profit 0 P & L Balance brought forward 235.35 Statutory Appropriations 0 Appropriations 142.33 P & L Balance carried down 326.89

Dividend Preference Dividend Equity Dividend % Earnings Per ShareEarnings Per Share(Adj)-Unit Curr Book Value

101.66 101.53 77.64 59.73 95.56 0 0 0 0 0 425 425 325 250 400 18.12 14.25 11.11 44.62 68.71 53.64 43.54 37.78 165.86 345.14

Balance Sheet Of Britannia Industries Ltd

Britannia Industries Ltd (Rs in Crs) Year SOURCES OF FUNDS : Share Capital Reserves Total Equity Share Warrants Equity Application Money Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Other Liabilities Total Liabilities APPLICATION OF FUNDS : Gross Block Less : Accumulated Depreciation Less:Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets Less : Current Liabilities and Provisions jCurrent Liabilities Provisions Total Current Liabilities Mar 13 Mar 12 Mar 11 Mar 10 Mar 09 23.89 800.65 0 0 824.54 2.2 22.97 25.17 0 849.71 511.5 233.66 0 277.84 0 6.02 423.1 253.63 49.61 40.8 195.3 539.34

23.91 23.89 23.89 23.89 617.32 496.15 427.41 372.36 0 0 0 0 2.29 0 0 0 643.52 520.04 451.3 396.25 0.53 0.8 407.76 408.1 214.95 433.7 23.68 21.51 215.48 434.5 431.44 429.61 157.74 136.73 138.67 0 1,016.74 1,091.27 1,021.41 825.86 784.22 332.54 0 451.68 0 128.44 279.6 331.49 77.12 64.48 196.79 669.88 677.36 298.27 0 379.09 0 79.73 428.94 382.28 52.14 30.94 182.08 647.44 593.56 289.86 0 303.7 0 11.7 545 311.2 57.26 28.75 70.63 467.84 547.83 266.33 0 281.5 0 9.97 490.64 268.34 39.49 23.36 207.7 538.89

518.27 448.11 358.19 310.89 265.8 134.4 124.8 96.65 190.83 147.48 652.67 572.91 454.84 501.72 413.28 95

Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Other Assets Total Assets Contingent Liabilities

17.21 74.53 13 37.17 0 0 0 0 24.21 23.68 22.87 31.18 37.83 31.84 29.11 24.6 -13.62 -8.16 -6.24 6.58 153.43 137.14 154.25 0 1,016.74 1,091.27 1,021.41 825.86 53.39 34.4 110.08 268.75

126.06 26.64 14.31 24.26 -9.95 0 849.71 160.39

96

Profit & Loss A/C Of Cadbury India Ltd

Cadbury India Ltd (Rs in Crs) Year INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per ShareEarnings Per Share(Adj)Book Value Dec 12(12) 4,271.61 205.63 4,065.98 58.07 51.9 4,175.95 1,576.33 81.27 271.93 593.77 1,156.98 44.41 0 3,724.69 451.26 6.01 445.25 79.24 366.01 115.5 0 -52.95 303.46 0.21 303.25 0 884.03 0 37.61 1,149.88 6.21 0 20 97.33 424.32 Dec 11(12) 3,521.89 157.24 3,364.65 123.38 10.6 3,498.63 1,247.80 60.7 239.19 533.36 924.11 45.37 0 3,050.53 448.1 4.36 443.74 67.41 376.33 84.23 0 -4.96 297.06 -0.1 297.16 0 623.9 0 36.93 884.03 6.21 0 20 95.28 329 Dec 10(12) 2,614.90 111.66 2,503.24 30.27 83.41 2,616.92 903.81 52.61 166.72 447.62 698.49 33.81 0 2,303.06 313.86 3.9 309.96 60.76 249.2 65.26 0 -24.84 208.78 -2.67 211.45 0 443.22 0 28.1 623.9 6.21 0 20 66.87 235.71 Dec 09(12) 2,045.08 110.7 1,934.38 14.23 -16.28 1,932.33 617.29 37.25 133.59 295.09 542.82 24.87 0 1,650.91 281.42 3.28 278.14 43.83 234.31 38.12 1.05 6.51 188.63 -0.26 188.89 0 389.91 0 135.32 443.22 6.21 0 20 60.37 170.84 Dec 08(12) 1,751.24 162.65 1,588.59 25.07 51.32 1,664.98 522.06 29.7 119.62 283.97 462.23 3.83 0 1,421.41 243.57 5.2 238.37 36.52 201.85 35.06 3.44 -2.43 165.78 0.66 165.12 0 343.13 0 119 389.91 6.44 0 20 51.18 144.31 97

Balance Sheet Of Cadbury India Ltd

Cadbury India Ltd (Rs in Crs) Year Dec 12 Dec 11 Dec 10 Dec 09 31.07 499.73 0 0 530.8 2.28 9.89 12.17 0 542.97 724.75 372.09 0 352.66 0 152.53 18.01 199.82 31.09 271 65.93 567.84 Dec 08 32.18 432.22 0 0 464.4 32.02 9.68 41.7 0 506.1 586.94 335.49 0.06 251.39 0 123.86 2.92 222.81 19.68 273.82 65.58 581.89

SOURCES OF FUNDS : Share Capital 31.07 31.07 31.07 Reserves Total 1,287.30 991.12 701.28 Equity Share Warrants 0 0 0 Equity Application Money 0 0 0 Total Shareholders' Funds 1,318.37 1,022.19 732.35 Secured Loans 0 0 0 Unsecured Loans 6.33 7.23 8.53 Total Debt 6.33 7.23 8.53 Other Liabilities 46.01 52 0 Total Liabilities 1,370.71 1,081.42 740.88 APPLICATION OF FUNDS : Gross Block 1,127.40 964.44 898.81 Less : Accumulated Depreciation 524.74 455.13 392.37 Less: Impairment of Assets 7.31 3.41 0 Net Block 595.35 505.9 506.44 Lease Adjustment 0 0 0 Capital Work in Progress 296.77 178.02 80.11 Investments 0.02 39.03 57.9 Current Assets, Loans & Advances Inventories 676.63 427.04 339.23 Sundry Debtors 52.72 58.61 40.48 Cash and Bank 464.46 489.37 410.56 Loans and Advances 82.53 75.66 36.21 Total Current Assets 1,276.34 1,050.68 826.48 Less : Current Liabilities and Provisions Current Liabilities 988.3 769.5 651.36 Provisions 66.43 13.22 92.63 Total Current Liabilities 1,054.73 782.72 743.99 Net Current Assets 221.61 267.96 82.49 Miscellaneous Expenses not written off 0 0 0 Deferred Tax Assets 85.7 40.35 35.8 Deferred Tax Liability 13.84 21.44 21.86 Net Deferred Tax 71.86 18.91 13.94 Other Assets 185.1 71.6 0

494.47 42.71 537.18 30.66 0 8.37 19.26 -10.89 0

429.18 20.4 449.58 132.31 0 9.36 13.74 -4.38 0 98

Total Assets Contingent Liabilities

1,370.71 1,081.42 740.88 542.97 506.1 280.51 176.04 157.79 142.99 73.52

99

Profit & Loss A/C Of GlaxoSmithKline Consumer Healthcare Ltd

GlaxoSmithKline Consumer Healthcare Ltd (Rs in Crs) Year INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Dec 12(12) Dec 11(12) Dec 10(12) Dec 09(12) Dec 08(12)

3,366.97 2,911.59 2,430.77 2,025.12 1,700.45 179.48 146.59 124.65 103.62 158.51 3,187.49 2,765.00 2,306.12 1,921.50 1,541.94 113.79 85.25 117.39 89.32 95.48 14.47 44 29.8 13.83 45.87 3,315.75 2,894.25 2,453.31 2,024.65 1,683.29 924.45 62.86 301.12 381.49 833.89 124.75 0 832.28 55.23 258.36 342.92 715.38 100.37 0 701.58 45.28 221.85 299.18 631.51 59.79 0 557.89 39.64 193.95 262.3 526.69 44.27 0 470.83 44.24 166.46 245.18 379.19 46.02 0

2,628.56 2,304.54 1,959.19 1,624.74 1,351.92 687.19 589.71 494.12 399.91 331.37 2.42 3.47 2.6 4.03 5.34 684.77 586.24 491.52 395.88 326.03 36.08 45.98 39.71 42.02 41.95 648.69 540.26 451.81 353.86 284.08 233.67 198.21 167.68 136.89 100.8 0 0 0 1.79 5.65 -21.74 -13.16 -15.72 -17.6 -10.7 436.76 355.21 299.85 232.78 188.33 0.47 0.01 1.69 0.1 1.36 436.29 355.2 298.16 232.68 186.97 0 0 0.3 0 0 294.51 145.9 120.94 0 0 0 0 0 0 0 263.63 206.6 275.19 111.84 188.33 467.64 294.51 145.9 120.94 0 189.25 147.2 210.28 75.7 63.08 0 0 0 0 0 450 350 500 180 150 100

Earnings Per ShareEarnings Per Share(Adj)Book Value

96.54 323.58

78.78 272.04

62.99 228.25

52.29 215.19

42.23 180.9

Balance Sheet Of GlaxoSmithkline Consumer Healthcare Ltd

GlaxoSmithkline Consumer Healthcare Ltd (Rs in Crs) Year Dec 12 Dec 11 Dec 10 Dec 09 Dec 08

SOURCES OF FUNDS : Share Capital 42.06 42.06 42.06 42.06 42.06 Reserves Total 1,318.92 1,102.12 917.98 863.04 718.82 Equity Share Warrants 0 0 0 0 0 Equity Application Money 0 0 0 0 0 Total Shareholders Funds 1,360.98 1,144.18 960.04 905.1 760.88 Secured Loans 0 0 0 0 0 Unsecured Loans 0 0 0 0 0 Total Debt 0 0 0 0 0 Other Liabilities 88.28 60.73 0 0 0 Total Liabilities 1,449.26 1,204.91 960.04 905.1 760.88 APPLICATION OF FUNDS : Gross Block 656.24 636.66 598.96 558.48 539.47 Less : Accumulated Depreciation 462.4 435.97 396.71 364 329.24 Less:Impairment of Assets 0 0 0 0 0 Net Block 193.84 200.69 202.25 194.48 210.23 Lease Adjustment 0 0 0 0 0 Capital Work in Progress 197.23 149.16 108.33 37.78 15.88 Investments 0 0 0 0 0 Current Assets, Loans & Advances Inventories 369.64 369.96 312 266.03 277.17 Sundry Debtors 112.61 99.19 50.37 31.36 43.25 Cash and Bank 1,464.24 1,079.66 976.1 819.8 470.98 Loans and Advances 110.64 93.49 84.66 55.72 61.97 Total Current Assets 2,057.13 1,642.30 1,423.13 1,172.91 853.37 Less : Current Liabilities and Provisions Current Liabilities 829.92 653.64 470.37 375.32 250.24 Provisions 275.31 223.92 330.03 135.76 61.78 Total Current Liabilities 1,105.23 877.56 800.4 511.08 312.02 Net Current Assets 951.9 764.74 622.73 661.83 541.35 Miscellaneous Expenses not written off 0 0 0 0 0 101

Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Other Assets Total Assets Contingent Liabilities

68.46 47.79 38.26 6.83 7.9 11.53 61.63 39.89 26.73 44.66 50.43 0 1,449.26 1,204.91 960.04 284.68 160.69 147.43

23.84 12.83 11.01 0 905.1 33.44

11.64 18.22 -6.58 0 760.88 35.89

102

Profit & Loss A/C Of Jubilant Foodworks Ltd

Jubilant Foodworks Ltd (Rs in Crs) Year INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr Mar 13(12) 1,407.57 0 1,407.57 7.77 -0.39 1,414.95 366.65 72.67 269.15 95.95 308.78 49.59 0 1,162.79 252.16 0.06 252.1 54.67 197.43 49.57 0 12.75 135.11 -1.13 136.24 0 137.34 0 0 272.45 0 0 0 20.7 66.82 Mar 12(12) 1,017.36 0 1,017.36 5.92 1.78 1,025.06 262.9 47.56 195.85 70 218.23 38.06 0 832.6 192.46 0 192.46 37.8 154.66 38.89 0 10.13 105.64 -4.43 110.07 0 31.7 0 0 137.34 0 0 0 16.23 46.03 Mar 11(12) 678.28 0 678.28 1.99 0.25 680.52 170.83 34.07 133.25 46.76 149.26 24.25 0 558.42 122.1 0.34 121.76 29.34 92.42 23.49 0 -3.07 72 -0.4 72.4 0 -40.3 0 0 31.7 0 0 0 11.16 29.71 Mar 10(12) 475.52 0 475.52 0.37 0.54 476.43 105.5 23.28 78.8 30.59 154.01 18.53 0 410.71 65.72 8.33 57.39 24.34 33.05 0.08 0 0 32.97 -0.32 33.29 0 -73.27 0 0 -40.3 0 0 0 5.18 18.27 Mar 09(12) 313.91 33.3 280.61 0.38 0.1 281.09 71.92 17.65 54.12 19.19 73.28 10.97 0 247.13 33.96 8.91 25.05 16.95 8.1 0.8 0 0 7.3 -0.56 7.86 0 -80.57 0 0 -73.27 0 0 0 1.26 4.12 103

Balance Sheet Of Jubilant Foodworks Ltd

Jubilant Foodworks Ltd (Rs in Crs) Year SOURCES OF FUNDS : Share Capital Reserves Total Equity Share Warrants Equity Application Money Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Other Liabilities Total Liabilities APPLICATION OF FUNDS : Gross Block Less : Accumulated Depreciation Less:Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Other Assets Total Assets Contingent Liabilities Mar 13 Mar 12 65.28 370.93 0 0 436.21 0 0 0 7.48 443.69 566.79 184.08 0 382.71 0 8.44 115.05 23.44 6.76 37.07 12.33 79.6 65.08 234.47 0 0 299.55 0 0 0 9.5 309.05 389.58 139.05 0 250.53 0 11.79 103.2 18.42 6.41 12.06 12.38 49.27 Mar 11 64.53 127.16 0 0 191.69 0 0 0 8.08 199.77 290.43 110.28 0 180.15 0 2.81 21.64 14.22 4.14 8.94 37.59 64.89 Mar 10 63.62 52.62 0 1.5 117.74 8.59 0 8.59 0 126.33 227.55 87.23 0 140.32 0 2.56 0.03 7.06 2.95 7.04 36.22 53.27 Mar 09 58.16 -34.21 0 0 23.95 82.45 0 82.45 0 106.4 170.98 64.44 0 106.54 0 8.94 0 5.53 1.17 3.01 23.87 33.58

185.65 152.89 105.87 5.73 1.04 0.98 191.38 153.93 106.85 -111.78 -104.66 -41.96 0 0 0 8.19 5.76 5.2 28 12.82 2.13 -19.81 -7.06 3.07 69.08 55.25 34.06 443.69 309.05 199.77 10.82 9.15 5.37

65.98 3.87 69.85 -16.58 0 0 0 0 0 126.33 1.93

39.8 2.86 42.66 -9.08 0 0 0 0 0 106.4 1.3

104

Profit & Loss A/C Nestle India Ltd

Nestle India Ltd (Rs in Crs) Year INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr Dec 12(12) 8,614.15 279.62 8,334.53 31.03 92.02 8,457.58 3,238.44 370.89 663.38 815.2 1,375.75 137.55 0 6,601.21 1,856.37 26.6 1,829.77 277.15 1,552.62 372.83 0 111.86 1,067.93 -10.7 1,078.63 0 656.89 0 650.27 1,074.55 467.62 0 485 102.89 186.52 Dec 11(12) 7,697.31 182.76 7,514.55 27.16 48.28 7,589.99 3,052.64 295.81 546.46 753.26 1,236.55 158.91 0 6,043.63 1,546.36 5.11 1,541.25 153.33 1,387.92 416.14 0 10.23 961.55 -4.01 965.56 0 334.5 0 639.16 656.89 467.62 0 485 91.91 132.13 Dec 10(12) 6,376.58 121.84 6,254.74 42.65 82.94 6,380.33 2,655.79 219.2 422.82 647.17 1,083.83 77.58 0 5,106.39 1,273.94 1.08 1,272.86 127.75 1,145.11 325.17 0 1.27 818.67 -5.67 824.34 0 142.52 0 626.69 334.5 467.62 0 485 76.9 88.72 Dec 09(12) 5,222.42 93.04 5,129.38 37.8 8.65 5,175.83 2,073.25 158.87 424.36 495.36 907.17 87.17 0 4,146.18 1,029.65 1.4 1,028.25 111.27 916.98 265.34 1.52 -4.88 655 -2.17 657.17 0 100.11 0 612.59 142.52 467.62 0 485 59.69 60.29 Dec 08(12) 4,471.06 143.39 4,327.67 33.89 31.12 4,392.68 1,785.51 159.76 306.92 476.36 723.32 73.99 0 3,525.86 866.82 1.64 865.18 92.36 772.82 222.31 8.25 8.18 534.08 -1.91 535.99 0 12.52 0 446.49 100.11 409.77 0 425 48.17 49.09 105

Balance Sheet Of Nestle India Ltd

Nestle India Ltd (Rs in Crs) Year Dec 12 Dec 11 Dec 10 Dec 09 Dec 08 SOURCES OF FUNDS : Share Capital 96.42 96.42 96.42 96.42 96.42 Reserves Total 1,701.99 1,177.54 759 484.85 376.93 Equity Share Warrants 0 0 0 0 0 Equity Application Money 0 0 0 0 0 Total Shareholders' Funds 1,798.41 1,273.96 855.42 581.27 473.35 Secured Loans 0.24 0.84 0 0 0 Unsecured Loans 1,049.95 970.03 0 0 0 Total Debt 1,050.19 970.87 0 0 0 Other Liabilities 1,025.05 885.13 0 0 0 Total Liabilities 3,873.65 3,129.96 855.42 581.27 473.35 APPLICATION OF FUNDS : Gross Block 4,427.56 2,552.21 1,854.70 1,640.79 1,404.84 Less : Accumulated Depreciation 1,216.44 966.07 841.96 734.27 651.54 Less: Impairment of Assets 6.85 10.39 0 10.32 0.31 Net Block 3,204.27 1,575.75 1,012.74 896.2 752.99 Lease Adjustment 0 0 0 0 0 Capital Work in Progress 344.08 1,371.78 348.91 79.63 109.17 Investments 364.86 134.37 150.68 203.26 34.9 Current Assets, Loans & Advances Inventories 745.58 734.04 575.95 498.74 434.91 Sundry Debtors 87.57 115.42 63.29 64.19 45.59 Cash and Bank 236.96 227.21 255.29 155.58 193.69 Loans and Advances 55.15 79.3 151.44 138.05 123.76 Total Current Assets 1,125.26 1,155.97 1,045.97 856.56 797.95 Less : Current Liabilities and Provisions Current Liabilities 1,097.43 1,009.53 761.67 587.59 507.46 Provisions 30.76 212.07 907.94 834.79 677.32 Total Current Liabilities 1,128.19 1,221.60 1,669.61 1,422.38 1,184.78 Net Current Assets -2.93 -65.63 -623.64 -565.82 -386.83 Miscellaneous Expenses not written off 0 0 0 0 0 Deferred Tax Assets 72.32 60.52 48.74 46.8 38.91 Deferred Tax Liability 234.4 110.74 82.01 78.8 75.79 Net Deferred Tax -162.08 -50.22 -33.27 -32 -36.88 Other Assets 125.45 163.91 0 0 0 Total Assets 3,873.65 3,129.96 855.42 581.27 473.35 Contingent Liabilities 11.7 0 0 0 0

106

107