"Sales and Supply Chain Management": Amrut Mody School of Management

Havmor Ice Cream Ltd.
1
Sales and Supply Chain Management
Project Report on
SALES AND SUPPLY CHAIN MANAGEMENT
HAVMOR ICE CREAM LTD.
(Operations Department)
By
Anurag Shah
Archi Shah
Harsh Shah
Parshwa Shah
Riya Shah
Siddharth Shah
Jay Nathvani
Arpit Shah
MBA-II
Faculty Guide: Dr. Sujo Thomas
Amrut Mody School of Management
AMSoM, AHMEDABAD UNIVERSITY| 1

Havmor Ice Cream Ltd. 2
Project Report on
SALES AND SUPPLY CHAIN MANAGEMENT
HAVMOR ICE CREAM LTD
(Operations Department)
Sept. 2017
Report submitted in partial fulfilment of the requirements of the course Sales

and Distribution Management.

ACKNOWLEDGEMENT
We are privileged to get this opportunity and it was indeed great pleasure to express my
thanks and gratitude to all those who have helped us during the tenure of this project. The
completion of this project entitled SALES AND SUPPLY CHAIN MANAGEMENT
would not be possible without their help and encouragement. We are thankful to the program
office who has imparted this program as a course in academics. This has given us the
opportunity to explore ourselves and gain more practical knowledge about the working of the
corporate world.
We are grateful to Mr. Pradeep Chona and Mr. Ankit Chona [Managing Directors], Mr.
Mitesh Mathur [ V.P. (Operations), Mr. Rakesh Matai [ AGM ] ,Mr. Randhir Rajput
[Manager HR], of Havmor Ice Cream Ltd who rendered immense cooperation, support, help
and guidance to me by providing all information and database required in my in project. We
are also thankful to all other staff, administration staff and all servicing staff at Havmor Ice
Cream Ltd who facilitated with their valuable time.
We extend our sincere thanks to our faculty guide Dr. Sujo Thomas in providing his
guidance. We are also grateful to Dr.Devanath Tirupati [Dean-Amrut Mody School of
Management] for giving all students such a nice opportunity to work on a project and to gain
great experience in the corporate world.
We would like to thank my friends and colleagues who have been a source of inspiration and
motivation that helped us during the in period. We would also like to thank all those people
who have helped us in Project work in any possible way.
Lastly, we heartily appreciate our family members for their motivation, love and support in
fulfilling our academic goal

TABLE OF CONTENTS
TITLE PAGE NO.

1. EXECUTIVE SUMMARY 5
2. OBJECTIVES 6
3. LIMITATIONS 6
4. INTRODUCTION TO ICE CREAM INDUSTRY 7
4.1 TOP 10 ICE CREAM INDUSTRY (INDIA) 8
5. POERTER'S FIVE FORCES 9
6. COMPANY'S INRODUCTION 10
6.1 BRIEF HISTORY 11
6.1 VISION 12
6.1 MISSION 12
6.1 KEY MILE STONES 12
7. SWOT ANALYSIS 13
8. DEPARTMENTS IN HAVMOR 15
9. PRODUCTION DEPARTMENT 16
9.1 REAL ICE CREAM OR FROZEN DESSERT 16
10. INVENTORY 17
10.1 RAW MATERIAL 17
10.2 PACKING MATERIAL 17
10.3 EOQ & SAFETY STOCK 18
11. SUPPLY CHAIN 22
11.1 COLD STORAGE 23
11.2 DISPATCH 23
12. PROBLEMS 24
13. BIBLIOGRAPHY 25

EXECUTIVE SUMMARY
As a part of curriculum we have prepared a report on HAVMOR ICE CREAM LTD for its
sales and channel distribution problems. It becomes necessary for a postgraduate student to
be well versed with both theoretical knowledge and its practical application in real life
situation. This project is an eye opener regarding the actual functioning of different
departments in an organization
Inventory is the most important asset of any manufacturing company. There are various
problems that they have shared with us and also we have identified in their sales and channel
distribution network. Out of these there is a few which we have explained in our project
report.
This report has been written in response to a comprehensive study, conducted on the SALES
AND SUPPLY CHAIN MANAGEMENT of HAVMOR ICE CREAM LTD.. The
report mentions and evaluates the various aspects, pertaining to the distribution channel of the
company. After a thorough analysis of the various facts stand figures, a set of
recommendations has been given at the end of the report

OBJECTIVES
To study supply chain management and channel distribution of HAVMOR ICE

CREAM LTD.
To study distribution network
To study and analyse the inventory method used at HAVMOR ICE CREAM and how
it affects the total cost
To learn how the company keeps all the data of inventory
LIMITATIONS
Detail study about all the material was not possible because of time limit
Some of the information was kept confidential by the stories department
Study was confined only to the selected components in the stores department

INTRODUCTION TO ICE-CREAM INDUSTRY
With India's ice-cream industry growing at close to 17 per cent, regional brands Havmor and
Vadilal have upped the decibel levels and taken their campaigns national this year while
veterans - Amul, Mother Dairy and Kwality Walls among others - are banking on new
flavours and an emerging premium category in urban areas to expand the market.
From Rs 7,300 crore in 2014, the ice-cream category has jumped up to Rs 8,530 crore in
2015, points out a recent Euromonitor analysis. And according to several companies,
volumes have grown about 30 per cent or so in March and April over the same period in the
previous year. A hot summer is expected to push revenues up even further.
GCMMF's (Gujarat Co-operative Milk Marketing Federation which owns the Amul brand)
managing director R S Sodhi says, "Sales are very good this year, growing at least 30 per cent
month on month as compared to the last season. We are also adding production capacity,
which will be ready within the next two months." Amul had expanded its sticks
manufacturing capacity three-fold last year.
India Ice Cream Market By Type, By Organized Vs. Unorganized Sector, By Category,
Competition Forecast & Opportunities, 2011-2021, the ice cream market in India is forecast
to exhibit a CAGR of 17.03% during 2016-2021. Ice cream market in India grew at a
moderate pace over the past few years, on account of increasing number of international ice
cream brands entering the Indian market, improving cold storage facilities, coupled with
changing consumer taste. Moreover, India is the largest producer of milk, as the country
accounts for over 1/5th of global milk production, thereby offering ice cream market in the
country with large volume of raw material for manufacturing of ice creams
The ice cream industry is a highly seasonal industry and bulk of the retail sales take place in
the summer period. In this fragmented industry, there are over 10,000 players. In the
organized segment, Amul is the leading ice cream player and holds close to 32% of the
market share followed by Vadilal Industries. Other large players in the sector include
Hindustan Unilever, Mother Dairy, Havmor and Nestle.
The ice cream market in India is estimated to be over INR 4,000 crores, and is growing at a
rate of 15-20% year-on-year. It is projected that by 2019, the market will reach around INR
6,198 crores

Here are the Top 10 best and most popular ice cream brands in India:
1. Amul
2. Baskin-Robbins
3. Kwality Walls:
4. Mother Dairy
5. Vadilal ice cream:
6. Cream bell ice creams
7. Top n town ice cream:
8. Arun ice cream:
9. Dinshaws ice cream:
10. Nirulas ice cream:

PORTERS FIVE FORCE MODEL
1. Threat of new entrants (HIGH)
In ice cream industry firms are competing with each other on the basis of product
differentiation by offering its products to masses as well as to premium segment. With ice
cream product, the switching cost of consumer is low. The threat from new players in the
market is high because the manufacturing process is simple and not more costly.
2. Powers of buyers(HIGH)
For ice cream manufacturing companies, the main supply chain members are retailers, who
buy in massive quantities and push the products to endconsumer. There is high power of
channel members and in case of individual consumers power of buyers will also be high as
they can go for different ice cream brands.
3. Power of suppliers(LOW)
Quality is the supreme factor. In India, the agri-business is still not fully developed and is in
developing stage. The concern for dairy producers which is now going for ice cream
manufacturing is very less. So, the power of suppliers is low.
4. Availability of substitutes (HIGH)
To make the tongue sweeter there are many alternative products like different sweets, Kulfi
and Faludah. Kulfi is a traditional desert which is prepared by using cream and Faludah is
having rice noodle with flavours and are low in price so there is high pressure on ice creams
as consumer can go for substitutes.
5. Competitive Rivalry (HIGH)
There are some big companies in Indian ice cream market with many emerging companies
and new companies trying to come in the Indian market making high competitive rivalry.
Several multinational companies like New Zealands natural ice creams are started serving in
Indian market. There are domestic players also which are emerging in this sector like Nirulas
ice cream in Northern region of India.
After analysing the Indian ice cream market, with the help of the Porter model, it is clear that
the ice cream market has features of monopolistic market.

COMPANY INTRODUCTION
BRIEF HISTORY
SMALL BEGINNING, BIG VISION, GREAT AMBITIOUS
Havmor ice-cream began its branded life in 1944 in Karachi, in undivided India. By 1947, it
was a popular brand there.
But in 1947, in the wake of the partition, its founder Satish Chona had to join the exodus into
India, virtually with no moveable assets searching for a new turf; he tried out Dehra Dun and
Indore, and finally, settled down in Ahmedabad. No, it was not a case of brand relocation,
or anything else as fanciful. He had to start the venture from scratch again. In fact, he had to
begin from a hand-cart at the Ahmedabad Railway Station, churning out the Ice Cream
manually. He called this fledgling brand Havmor -- a neologism for Have More --
which meant the customer, got more value for money, and more taste to relish, from his Ice
Creams.
The company, which is now being headed by Ankit Chona, the third generation of the
founding family, plans to spend around Rs 225-250 crore to expand its manufacturing
capacity. A new facility is planned at Faridabad which would cater to northern markets.
Existing plants would also be expanded from a capacity of 2, 50,000 litres per day (lpd) to
350,000 lpd.
Havmor moved to India and set up its base in Ahmedabad. Way back in 1951, it started as a
handcart venture and the company's first shop was set up in 1953.
In 1974, Pradeep Chona joined his father in the business. He introduced the latest technology,
improved hygiene standards and inculcated a corporate business environment at Havmor.

In 2005, his son Ankit Chona joined the family business and under his leadership, the
company has witnessed expansion of business in various states.
Ankit, who holds a Masters degree in Business Administration from Purdue University in
the United States of America (USA), began his career with Panera Bread- an American chain
of bakery-caf fast casual restaurants in the US and Canada.
With a group turnover of Rs 450 crore, Havmor is expanding fast and entering markets
beyond Gujarat. At present, Havmor is available in more than 40,000 outlets across the states
of Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, Punjab, Goa and Telangana, Delhi,
Haryana, Uttar Pradesh, Chhattisgarh, Andhra Pradesh and Karnataka.
Havmor has over 160 ice cream varieties under its portfolio apart from running a restaurant
business in Gujarat. At present, the company owns and runs over 20 restaurants, 60 eateries
and more than 40000 ice cream outlets.

VISION
HAVMOR ICE CREAM LTD., as a group will be an outstanding and reputed food company
with an annual turnover exceeding Rs.5 billion in the year 2015. By the year 2020 it is
projected to be amongst the top three Ice cream brands in India with a turnover exceeding
Rs.15 billion.
MISSION
Good, Truthful, Clean Enterprising Ethos Satish Chona, the founder of Havmor, began his
enterprise half a century ago with a simple guideline -- Achhai, Sachhai, Safai (Goodness,
Truthfulness, Cleanliness). The succeeding generations at the helm of the company
translated this axiom into a way of life and business. Only the finest ingredients go into the
making of Havmor Ice Creams. The whole manufacturing process conforms to global
standards of hygiene. And the companys trade practices are kept totally transparent. Based
on new generation technology and in-house R&D, the company keeps formulating new tastes
at frequent intervals, and surprising its consumers. It has also diversified into other food
items, through a high profile Restaurant Chain. Today, six decades later, Satish Chonas
simple philosophy still continues to be the corporate axiom of the Havmor conglomerate.
And the company values its entrepreneurial self-esteem, market image and reputation for
financial uprightness above its pure business interests.
Key Milestones of Havmor
1944 Havmor Brand established the first outlet in Karachi

1953 First parlour at Relief Road in Ahmedabad
1983 The first drive through restaurants in Panchvati
1991 First State-of-the-art production unit at Naroda
2006 Introduction of first HavFunn Eatery
2007 Expansion in Maharashtra
2008 Expansion in Rajasthan
2011 Increased the capacity of the facility at Naroda to 2.5 lakh litres a day
2013 Expansion in Goa and Punjab
2015 Expansion in Telangana
2017 Expansion in Delhi

SWOT ANALYSIS
STRENGTH:-
GROWING DOMESTIC MARKET:
Due to development and growth of domestic market and demand for the domestic product is
increasing rapidly. As due to growth in domestic market the product of Havmor Ltd is now
being used up by the connection
SELF-SUFFICIENCY
In technology Havmor has a strong indigenous base.
FINANCIALLY SOUND AND REPUTED BRAND
Havmor is financially sound and has good reputation. It has its parlours at every corner of the
city. It has strong and wide network of dealers.
HEALTHY ENVIORNMENT
Havmor has highly trained staff. It provides maximum satisfaction to the staff that creates a
healthy industrial relation with a good working environment.
WEAKNESS:-
HEAVY DISTRIBUTION COST OF SUPPLY NATIONWIDE
Havmor has a very heavy distribution cost as it has a cold chain network that is very
expensive. It faces transit problem as it has its manufacturing unit in Ahmedabad , where it
manufactures its ice-creams and food stuffs , then it sends it to cold storage and from where it
is dispatched according to the requirement. So this supply chain results in waste of time and
money. Due to this it is not able to make profit as much as it can.
SEASONAL DEMAND
Havmor is famous for its ice-creams which people generally prefer in summers and in snacks
it is famous for chana puri which people would prefer in winters. During off season the
demand is less that hampers the production result in decrease in profit margin. It provides
highest number of flavours and hence it is not possible to cater to all demands at every point
in time.

OPPORTUNITIES:-
HIGH-GROWTH IN SALES:
Havmor has many opportunities to increase its sales and they are adopting new ways and
techniques of advertising and also they have improved the quality of their product. It has
large number of dealers as well as parlours at every 1.5 k.m.
PRODUCT DIVERSIFICATION:
Havmor has technology and R&D centre which experiments with new flavours and food.
Like it launched pav bhaji few months back. Havmor doesnt stick to one type of ice-cream it
provides variety in ice-creams like roll-cuts, candies, novelties etc.
THREATS:-
Threats mean a positive danger that indicates us that we have to be cautious of prevailing
market conditions. It helps us to get the know-how about the market.
WIDENING TECHNOLOGY
With the increase in technology the scope for new entrants has become easier so the
competition has become wider. To survive in this competition it is very important to get
something innovative. At this stage threat from complementary goods is also vast.
RISING COST OF INPUT
There is always a threat from complementary goods as well as substitute goods. If the price
of input increases the profit margin may reduce and if the company increases the cost then
consumer may shift their demand to some other brand.

DEPARTMENTS IN HAVMOR
Production
Inventory
Raw material
Packing material
Dispatch
Quality Assurance
Quality control
Human Resources
Marketing
Purchase
Finance/Accounts
Cold storage
Operations
Maintenance

PRODUCTION
Production is carried out under highly qualified line managers observation and it has total 3
stages.
Mix Department
Filling Department
Hardening and Spiral tunnel Department
Mix Department
Filling Department
Hardening and Spiral tunnel Department
Real Ice Cream or Frozen Dessert?
The difference between Real Ice Cream and Frozen Dessert is presence of Vegetable Oil in
the recipe. Here in Havmor, ice cream consists of following ingredients.
Milk Powder
Milk
Cream
Butter
Sugar
Stabilizer and Emulsifier
Water
Liquid Glucose
Hence, we can conclude that Havmor produces Real Ice cream.

INVENTORY
It is essential to have adequate inventory when demand is fluctuating, 160 flavours are
available and daily production is 2, 50,000 litters. To solve this node Havmor has separated
Inventory Department into two parts.
Raw Material
Liquid Materials
Solid Materials
Packing Material
RAW MATERIAL
Raw material department takes care of such inventories which are used in production of ice
cream. For example, Milk, Milk powder, Flavours, Chocolate, Jellies, Dry fruits etc.
Raw material department is further divided into to two parts
Liquid Materials ( Milk, Liquid glucose, Food colours, Chocolate syrup etc)
Solid Materials ( Chocolate, Dry fruits, Jellies, etc )
Each type of dry fruit has total 6 types
According to size ( diced, small, large)

According to process ( normal , roasted, fried)
PACKING MATERIAL
Packing material department takes care of various products which are used for packing like
popsicles, stickers, wrappers, premium tubs etc. Havmor holds different type of packing
material for each product according to its type price and flavour, by combining every packing
material Havmor hold more than 1000 types of material.
Production, purchase and inventory department stays in sync to run production smoothly and
efficiently. Each packing material has been given a code by which production department
raises demand to inventory department. And the record of consumption and inventory level is
maintained on monthly bases.
The level of inventory plays vital role in overall costing because of the holding cost and
ordering cost. Overall carrying is not negligible when per year consumption of packing
material is 92, 69, 49,796 units.

EOQ
Economic order quantity (EOQ) is the order quantity of inventory that minimizes the total
cost of inventory management.
Two most important categories of inventory costs are ordering costs and carrying costs.
Ordering costs are costs that are incurred on obtaining additional inventories. They include
costs incurred on communicating the order, transportation cost, etc. Carrying costs represent
the costs incurred on holding inventory in hand. They include the opportunity cost of money
held up in inventories, storage costs, spoilage costs, etc.
Ordering costs and carrying costs are quite opposite to each other. If we need to minimize
carrying costs we have to place small order which increases the ordering costs. If we want
minimize our ordering costs we have to place few orders in a year and this requires placing
large orders which in turn increases the total carrying costs for the period.
We need to minimize the total inventory costs and EOQ model helps us just do that.
Total inventory costs = Ordering costs + Holding costs
By taking the first derivative of the function we find the following equation for minimum
cost
EOQ = (2 Quantity Cost Per Order / Carrying Cost Per Order)^(1/2)
SAFETY STOCK
Safety stock is the stock held by a company in excess of its requirement for the lead time.
Companies hold safety stock to guard against stock-out. Safety stock is calculated using the
following formula:
Safety Stock = (Maximum Daily Usage Average Daily Usage) Lead Time

Total inventory and its cost from April16 to Feb17 is listed below.
Material
Month Unit No. Of Product Cost in INR Total Cost
NOS 100603366 47825240.89
Apr-16 KG 32357.168 6643625.04 54468865.93
MTR 0 0
NOS 64195167 41296438.35
May-16 KG 27095.483 5633947.99 46930386.34
MTR 0 0
NOS 82851891 51293028.98
Jun-16 KG 34309.843 7352291.5 58645320.48
MTR 0 0
NOS 91527728 47120166.73
Jul-16 KG 30773.036 6619526.28 53744240.95
MTR 478.73 4547.94
NOS 73878920 40198114.73
Aug-16 KG 26147.655 5572746.97 45770909.96
MTR 5.08 48.26
NOS 57498075 33636099.9
Sep-16 KG 25278.472 5418605.01 39071195.01
MTR 1735.8 16490.1
NOS 105078694 49920733.74
Oct-16 KG 27841.839 5837996.38 55768768.2
MTR 1056.64 10038.08
NOS 90838381 44301004.85
Nov-16 KG 24015.834 5009359.26 49317984.06
MTR 802.1 7619.95
NOS 77745168 40721442.44
Dec-16 KG 18264.855 3887685.58 44613196.3
MTR 428.24 4068.28
NOS 66432307 34715205.57
Jan-17 KG 16097.633 3474842.82 38197379.35
MTR 771.68 7330.96
NOS 116300100 46250242.84
Feb-17 KG 22302.427 4657609.96 50915414.51
MTR 795.97 7561.71
1
TOTAL COST (APR-16 TO DEC-17) 537443661.1
(Table No.1)

As number of packing materials was very large we selected Premium Tubs to check the
working system of the company.
Details of Premium Tubs purchased from April16 to Feb17
(Table No.2)
Details of Premium Tubs Consumption during Apr16 to Feb17
(Table No.3)

After consumption, total stock of premium tubs and their cost are listed below.
PREMIUM TUBS
No. of Units Cost
Month C/T
Total Weighted average Total Cost in INR Weighted Average
Apr-16 44268 0.044002504 825387.91 1.725841616 18.64525
May-16 31435 0.048967861 586780.45 1.420898444 18.66647
Jun-16 143937 0.173728081 2669390.57 5.204197574 18.54555
Jul-16 146452 0.160008342 2726671.15 5.786633069 18.61819
Aug-16 117605 0.159186139 2192322.55 5.45379445 18.64141
Sep-16 180939 0.314687057 3367477.71 10.01149872 18.61112
Oct-16 156426 0.148865574 2911794.38 5.832835701 18.61452
Nov-16 155389 0.171060952 2887642.46 6.518232419 18.58331
Dec-16 140914 0.181251136 2621451.93 6.43752228 18.6032
Jan-17 129559 0.195024087 2410032.71 6.942297101 18.60182
Feb-17 115585 0.099385125 2103656.5 4.548422605 18.20008
Total avg. 0.154196987 5.443833998
Total 1362509 25302608.32 18.57554
Holding cost @ 12% = 3036313
(Table No. 4)

SUPPLY CHAIN MANAGEMENT
Havmor is currently available in total 13 states and every state is being served by only one
manufacturing plant located in Ahmedabad, Gujarat.
Only in Gujarat Havmor has total 90 distributors and 23 c&f (carrying & forwarding agency).
Havmor has a total of 90 refrigerated vans running across 13 states and having the capacity of
carrying 150 crates to 650 crates.
The company operates in following pattern.
Manufacturing Plant
Local Depot
C&F
Distributors
Outlets
In Havmor, Supply Chain is managed by two different departments simultaneously.

Which are,
Cold Storage
Dispatch
Any official distributor can raise a demand via mail. The distributor needs to list down his/her
total demand of one order at a time in special demand sheet prepared by Havmor and needs to
send it via e-mail to dispatch department.
Dispatch department extracts the demand letter and send a copy to cold storage department
and keeps another copy with them. As per demand letter cold storage department unloads the
ice cream crates from cold storages and dispatch department loads the crates into refrigerated
van.

COLD STORAGE
Ice cream needs to be frozen before dispatching. In Havmor, any ice cream is hardened for a
minimum of 2 days in cold storages at temperature ranging from -21 to -29. Havmor has total
six cold storages combined they can store up to 5,00,000 litres of ice cream.
Cold Store 1 is assigned for Cones

Cold Store 2&4 are assigned for Party Packs
Cold Store 3 is assigned for Cups
Cold Store 5 is assigned for Bulk Packs
Cold Store 6 is assigned for Novelties ( Candies , Juice Bars etc)
Every box of product has its batch code by which workers can identify age of that particular
product and according to its batch code product is kept in stores.
Whichever crate workers unload from cold store has be two days old otherwise it will be
rejected by the dispatch department.
DISPATCH
Dispatch department has total seven loading station along with Havmors barcode and
scanning system and metal detector. This eliminates chances of loading defective or
inappropriate ice cream crates.
Two checkers are allocated to each station to reduce chances of supplying defected or
irrelevant products.
When refrigerated van arrives to the loading station, inside temperature of that van should be
ranging from -18 to -15 only then after loading of crates takes place.
Once loading is finished the van is locked and again needs to achieve temperature around -
18 and till van reaches to its destination, the same temperature has to be maintained.
Temperature of each refrigerated van is observed via system continuously from its arrival to
loading station till it reaches to its destination.

Sales management Problems:

1. Predicted sales of Premium ice-cream tubs were much higher than actual sales.
2. Mismatch in communication for sales of premium tubs between sales department and
production department.
Channel Management Problems:

1. Delay in communication between Cold storage department and Dispatch department lead
to delays in delivery.
2. Dispute between the company and its distributors regarding delivery and serving bulk or
party orders.

1.
BIBLIOGRAPHY
Ice Cream Industry ( India)

https://www.google.co.in/amp/wap.business-standard.com/article-
amp/management/brands-play-to-the-ice-cream-stands-116050401427_1.html
Top 10 Ice Cream Brands (India)

http://www.trendingtopmost.com/worlds-popular-list-top-10/2017-2018-2019-2020-
2021/foods/most-popular-ice-cream-brands-india-best-selling/

"Sales and Supply Chain Management": Amrut Mody School of Management

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Havmor Ice Cream Ltd.

SALES AND SUPPLY CHAIN MANAGEMENT

HAVMOR ICE CREAM LTD.

Faculty Guide: Dr. Sujo Thomas

Amrut Mody School of Management

AMSoM, AHMEDABAD UNIVERSITY| 1

SALES AND SUPPLY CHAIN MANAGEMENT

HAVMOR ICE CREAM LTD

Report submitted in partial fulfilment of the requirements of the course Sales

AMSoM, AHMEDABAD UNIVERSITY| 2

AMSoM, AHMEDABAD UNIVERSITY| 3

TITLE PAGE NO.

AMSoM, AHMEDABAD UNIVERSITY| 4

AMSoM, AHMEDABAD UNIVERSITY| 5

To study supply chain management and channel distribution of HAVMOR ICE

AMSoM, AHMEDABAD UNIVERSITY| 6

INTRODUCTION TO ICE-CREAM INDUSTRY

AMSoM, AHMEDABAD UNIVERSITY| 7

AMSoM, AHMEDABAD UNIVERSITY| 8

PORTERS FIVE FORCE MODEL

1. Threat of new entrants (HIGH)

4. Availability of substitutes (HIGH)

5. Competitive Rivalry (HIGH)

AMSoM, AHMEDABAD UNIVERSITY| 9

SMALL BEGINNING, BIG VISION, GREAT AMBITIOUS

AMSoM, AHMEDABAD UNIVERSITY| 10

AMSoM, AHMEDABAD UNIVERSITY| 11

Key Milestones of Havmor

1944 Havmor Brand established the first outlet in Karachi

AMSoM, AHMEDABAD UNIVERSITY| 12

GROWING DOMESTIC MARKET:

In technology Havmor has a strong indigenous base.

FINANCIALLY SOUND AND REPUTED BRAND

HEAVY DISTRIBUTION COST OF SUPPLY NATIONWIDE

AMSoM, AHMEDABAD UNIVERSITY| 13

RISING COST OF INPUT

AMSoM, AHMEDABAD UNIVERSITY| 14

AMSoM, AHMEDABAD UNIVERSITY| 15

Hardening and Spiral tunnel Department

Real Ice Cream or Frozen Dessert?

Hence, we can conclude that Havmor produces Real Ice cream.

AMSoM, AHMEDABAD UNIVERSITY| 16

Raw material department is further divided into to two parts

Solid Materials ( Chocolate, Dry fruits, Jellies, etc )

Each type of dry fruit has total 6 types

According to size ( diced, small, large)

AMSoM, AHMEDABAD UNIVERSITY| 17

AMSoM, AHMEDABAD UNIVERSITY| 18

AMSoM, AHMEDABAD UNIVERSITY| 19

Details of Premium Tubs purchased from April16 to Feb17

Details of Premium Tubs Consumption during Apr16 to Feb17

AMSoM, AHMEDABAD UNIVERSITY| 20

Total avg. 0.154196987 5.443833998

Total 1362509 25302608.32 18.57554

Holding cost @ 12% = 3036313

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SUPPLY CHAIN MANAGEMENT

The company operates in following pattern.

In Havmor, Supply Chain is managed by two different departments simultaneously.

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Cold Store 1 is assigned for Cones

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Sales management Problems: