first 4 chapters

8/11/2019 First 4 Chapters

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Report of Summer Training Conducted at

BIKANERVALA FOODS PRIVATE LIMITED

Submitted in partial fulfillment of the requirementsfor the award of the degree of

Master of Business Administration (MBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Dr. D K Choudhary Ishpreet Singh

Roll No. -17619103913

Batch (2013-15)

Gitarattan International Business School

New Delhi -110085

Batch 2013-15


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CHAPTER -1

PROFILE OFCOMPANY

1.1 Nature of the Organization

Bikanervala is one Indias most prominent families in the business of

traditional hospitality products like sweets and namkeens.

Bikanervala Foods Pvt. Ltd. is an ISO 9001:2000, HACCP and SQF 2000

certified company with a chain of 88 outlets in India and aboard, serving

vegetarian North Indian, South Indian, Continental, Chinese cuisine and

Fast Food along with a vast variety of traditional Indian sweets and snacks.

Bikanervala is running outlets at Delhi and NCR, Agra, Lucknow, Meerut,

Allahabad, Ahmadabad, Hyderabad and Jalandhar. Currently, it has 18

company-owned and 20 franchise outlets. The total business generated

from franchising stands at 50 per cent.

The USP of Bikanervala is committed to hygiene and standardized quality.

It has achieved the unique distinction of becoming the first Indian company

in its category to have been granted ISO-9001:2008 certificate, an

internationally accepted Benchmark in more than 90 countries.

Recently Bikanervala got HACCP certification & SQF quality standard.


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Bikano a Packaged Food Division of Bikanervala is an international brand

of packaged Sweets, Namkeens, Snacks, Papad and Sherbets; all

manufactured to the world standards of hygiene and quality. Bikano prides

itself in successfully integrating ultra-modern technology to manufacture

its traditional food products. Our products are quite well known for being

healthier than the other available oily snacks in market because our salty

snacks and namkeen are fried in machines which are programmed by

Programmable Logic Controllers (PLC). That is why Bikano's packaged

products have always been a big hit and growing rapidly among consumers

in both India and abroad.

Today, Bikano's business thrives on consistent quality and constant

innovation, following which the company utilizes modern technology for

processing and packaging. This helps the company to retain original flavor

of manufactured products for maximum time period. Our State of the art

canning and packaging technology ensures that the products have longer

shelf life without harming their freshness. The 3-ply laminate packaging

extends the shelf life up to a year and our PLC based FFS machines ensure

fully automatic packing without direct hand touch. There is product

weighing system also in place to ensure the weight accuracy for each pack

and their food products like namkeens, sweets, cookies and sherbet have

made it the most preferred in between meal snack all over the world.

Bikano has always been in the forefront in adopting new technology and

procedures for its products.


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1.11 History

In 1950, a large family of traditional Halwais (Food Processors) from the

famous city of Bikaner decided to explore business opportunities beyond

Rajasthan, its traditional stronghold, and some of them migrated to Delhi .

They brought with them a treasure of traditional recipes perfected by their

forefathers, exotic ingredients and experience in the art of making sweets

and Namkeens. The beginning was from 'Moti Bazar' of old Delhi. The

Delhiwallas relished their Bikaneri Bhujia and Rasogollas and they fast

grew to a regular sweets shop in the historic Chandni Chowk. Soon the

love and affection of Delhiwallas earned them the name

'BIKANERVALA'.

Tradition taste that goes back several generations, recipes that have been

handed down as precious family treasures from one generation to another, a

definitive will to bring good taste to a larger audience and an almost

missionary zeal to create an everlasting imprint.

Fifty years ago, two brave sweet makers made the journey from their home

town Bikaner to Indias bustling capital city. They brought with them

secrets of sweets making as their capital and an enthusiasm to present a

very different culinary experience to the people who till now were exposed

to very different kind of savories.

They started small with a shop in Old Delhis Moti Bazaar. Soon, their

unique taste of the Bhujiya and Moong Ki Dal ka Halwa found many


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discerning patrons. Their reputation spread like the lavish aroma of their

credible creations and slowly but surely Bikanervala grew into a name

easily recalled and referred for every celebrations or even a small snack.

The main ingredient of their success was the untiring work ethic and

unwavering commitment to quality that the family blended so well with

their traditional forte. In its own little way, Bikanervala has contributed to

the history of Delhi. Around thirty two years ago, the introduced the city to

its first, incredible taste of Kaju katli a sweet that is almost for every

celebration now.

1.12 Geographical Areas Of Operation Of The Company

The branches of Bikanervala in India Agra, Ahemdabad, Allahabad,

Angan, Delhi & NCR(Chanakyapuri, Chandni Chowk, Connaught Place,

ITL Pitampura, Jail Road, Karol Bagh, Lajpat Nagar, Greater Kailash 2,

Naraina, Preet Vihar, Rajouri Garden, Punjabi Bagh, Ring Road Mall,

Noida -18 Greater Noida, Sohna Road, Noida 63, Gurgaon Old, Ghaziabad,

Faridabad, Gurgaon), Gajroula, Haridwar, Hyderabad, Jalandhar, Kundli,

Lucknow, Meerut, Sahibabad, Varanasi, Bhiwadi


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Bikanervala has 18 outlets around the world which is in Europe , Asia and

American Continent. Bikanervala, an ISO 9002 company, the plant is built

to meet international standards.US (United States ), Canada, UK (United

Kingdom), Germany, Australia, UAE, Kuwait, Singapore, Qatar, Thailand,

Hong Kong, Malaysia


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1.2 Vision & Mission

1.21 Companys Vision

Bikano vision is to promote India and Indian heritage, culture and cuisine

worldwide. They are focusing on customizing Indian food for the Global

Market. Good taste takes time to develop.

Exclusive recipes go through subtle evolution to become timeless classics.

Tradition melds into modernity while still keeping its character intact.

Bikanervala is the true essence of the coming together of a grand heritage

with innovative energy.

It has taken over half a century of focused growth and driven purpose to

transform Bikanervala from a traditional sweets and snacks maker to a

brand universally recognized as a symbol of great quality and exceptional

taste. Packed snacks and food chain .Bikanervala will invest up to Rs 250

crore over three years to open more restaurants and increasing production

capacity. ," Bikanervala Foods Pvt Ltd CEO Suresh Goel told PTI.

"Now they plan to open their restaurants in other parts of the country.

Currently, they are mostly operating in north India. New restaurants will be

mix of company owned and franchised outlets. Every year they will add

10-12 new restaurants."


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1.22Companys Mission

The companys mission is to review, recreate and rediscover the trend of

healthy eating and innovate and invent fresh new methods to nourish and

delight everyone they serve. Packed snacks and food chain Bikanervala

will invest up to Rs 250 crore over three years to open more restaurants and

increasing production capacity."They are expanding very fast and they will

invest up to Rs 250 crore by 2015-15 to increase their production capacity

and to open their restaurants," Bikanervala Foods Pvt Ltd CEO Suresh

Goel told PTI. The company will invest up to Rs 150 crore in adding 60

new restaurants spread across the country. It already has 40 restaurants in

India, spread across north India and Ahmedabad and Hyderabad. The rest,

Rs 100 crore, will be utilised in ramping up production capacity at a plant

in Haryana. It will also setup a new plant that is expected to come up in

Greater Noida.

1.23 Companys Motive

The basic motive is to offer best services and quality to satisfy their

customers throughout the globe. Quality is their passion and this spirit has

transformed the traditional Indian sweet-maker into a full-fledged

processing food industry


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1.24 Companys Goal

The goal of this company is to provide their customers perfect taste and

quality in best of packaging

1.3 Concept/Brands & Their Product Range

Bikanervala has three brands or concepts of food. They are as following:

1.31Bikanervala

The traditional Indian sweet shop cum restaurant, here the customer can

find the pleasure & warmth of traditional Indian sweets, namkeens, chat &

snacks and 100% pure Vegetarian multi cuisine restaurant which is served

& delivered with passion and celebration.

Bikanervala concept always has been to innovate and yet maintain the

original flavor of traditional Indian food with primary focus on quality,

hygiene and affordability. Customer satisfaction is on top at Bikanervala.

Bikanervala showrooms are located in India, Nepal, and UAE & New

Zealand.

Products list under Bikanerwala :

A. Desserts

Many Indian sweets or mithai, are fried foods made with sugar, milk

or condensed milk. Ingredients vary by region. Some common Indian

sweets and desserts include:


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Barfi, Chikki, Gulab jamun, Jalebi, Mysore pak, Kulfi, Kheer, Shrikhand,

Maalpuha, Rasgulla, Sandesh, Kaju Katli, Rabri, Pedha, Kalaakand,

Chenna

B. Beverage

A drink or beverages is a kind of liquid which is specifically prepared for

human consumption.There are many types of beverages offered by

Bikanerwala. The common beverages are: Tea, Lassi, Faluda, Coffee,

Sharbat, Nimbu Pain, Chaas, Flavored milk, Jal Jeera, Soups

C. Snack

A snack is a portion of food often smaller than a regular meal, generally

eaten between meals. Snacks come in a variety of forms including

packaged and processed foods and items made from fresh ingredients. The

common snacks are: Papdi chat, Paneer tikka, Tikki, Aloo chat, Dhokla ,

Samosa, Pakoda, Gol gappa, Dahi Bhalla, Kachori, Soya chap, Fruit chat

D. Main course

A main course is the featured or primary dish in a meal consisting of

several courses. The main dish is usually the heaviest dish on a menu. The

main course dishes are as follow: Dalmakkni, Dosa, Paneer ,Fish Curry,

Rajma, Choley, Kadi, Vada pav, Idli sambhar, Biryani, Dum aloo, Chicken,

Chap, Keema, Puri Sabzim, Aloo Gobi


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E. Chinese & Continental

This cuisine category is most preferable by younger generation so

bikanerwala has wide range of these products under this category which are

:Veg. Fried Rice, Veg. Chowmein Veg. Manchurian, Veg.Choupsey,Chilli

Paneer, Chinese Platter, Veg. Burger, Veg. Cheese Burger, Tomato Soup

1.32 Bikano

Bikano is the international brand of packaged sweets, namkeens, papad and

syrups manufactured according to the world standards of hygiene and

quality. Its packaged products have always been big attractions of

customers in both India and abroad. Its food products like namkeens,

cookies and syrups have made it the most preferred in between meal snack

all over the world.

Its concept of constant innovation through the use of modern technology

for packaging retains its original flavor for maximum time period. Its vast

variety of product are available in Bikanervala and Bikano Chat Caf

outlets and also in super markets in India and Aboard.

Products under Bikano are categorized into various segments:Namkeens,

Sweets, Snacks, Syrups

Namkeen: Namkeen is the Hindi word for savory or salty foods. The word

is probably derived from the Hindi word for salt, which isNamak. The


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varities which Bikano has are -:Khatta Meetha, Aloo Bhujia, Nimbu

Masala, Kashmiri Mix, Kaju Mixture, Navratan Mixture, Peanuts, Moong

Dal, Channa Masala

Sweets : Sweets are a small shaped piece of confectionery made with

sugar. In India its very frequently consumed by customers. So along with

modernization of food industry sweets are coming into packaged boxes

which can be easily stored by customer and Bikaner has a wide range of

packaged sweets which are :Chikki, Soan Cake, Kaju Barfi, Dry Petha,

Soan Cake, Panjeeri Ladoo, Karachi Halwa, Khoya Barfi.

Snacks :A snack is a portion of food often smaller than a regular meal,

generally eaten between meals. Snacks come in a variety of forms

including packaged and processed foods and items made from fresh

ingredients.Bikano has 3-4 types of packaged snacks which are :- Crunchy

Munchy, Punjabi Punch, Chatax, Wafers

1.33 Bikano Chat Caf

Bikano Chat Caf is a new age concept of Bikanervala aimed at

establishing a strong network in the corporate and the retail segment. It is a

chain fast food restaurants and Tuck Shops serving traditional Indian Chat,

Combo Meals, Burger, Pizza and Snacks in a modern hygienic

environment. Their main focus has been to provide packaged traditional

foods at an affordable price to their customer groups are located in


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corporate houses, mall, and exhibition stalls etc. Their innovative menu and

state-of-the-art manufacturing and delivery systems ensures original flavor

from kitchen to customer.

1.34 Angan

Angan a pure vegetarian family restaurant that vegetarian food to the

people who even traveled that provide vegetarian food to the people who

even traveled to India. Angan pure vegetarian restaurants are now available

in Delhi, India & Kathmandu, Nepal.

1.35 Bikanervala Boutique Hotel

Bikanervala has also launched a new hotel in vicinity of Hyderabad at

Banjara hills right above the bikanervala restaurant. Bikanervala group has

followed the concept a boutique hotel to provide hospitality services with

traditional Indian customs.

1.4 Size (In Terms Of Manpower & Turnover) Of Organisation.

The company has manufacturing unit for mass production (in greater noida

and rai(bhawana). It has 1,40,000 retailers , 1,200 distributors.

Bikanetrvala products are Available in 26 countries. It has 90 outlets.of

Bikano chat caf and 55 outlets of Bikanervala ( 4 in dubai, 3 in

newzealand, 1 in Singapore). In FY 2013, the turnover from packed food

was Rs 500 crore, while restaurants contributed Rs 100 crore.


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1.5 ORGANISATION STRUCTURE OF THE COMPANY

Figure No.1.1 - Organization Structure Of Bikanervala Pvt. Ltd.


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Table No-1.1: Designation

Designation of Manager Name

MD Mr.Shyam Sunder Aggarwal

GM Mr. Kailash kukreti

Chairman Sri Kedar Nath Aggarwal

R&D Ms. Mamta

Quality Ms. Neerja

Sales Mr. Kushal

Design & Development Ms. Shivli

Marketing Ms. Sangeeta

Customer Care Ms. Ishu

Costing Mr. Naveen Gupta

Salary Mr. Pushpinder

Project Mr. Vishal

Recruiter Ms. Swati

Trainer Ms.Veena Kumari


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1.7Market Share Of The Company

The market share of Bikanerwala is 13.75% of indian sales and 7.5% of

export

1.8 Present leadership

Mr.Harikant Vashisth Unit Managerconnought place Outlet

Mr. Feroz khan Assistant ManagerTrainee

Mr. Naval Kishore Assistant ManagerHuman Resource

Mr. kamal kishore Marketing & shift managercp outlet,

They are the employees of the Bikanervala I have interacted with during 6

weeks of Summer Internship. They help me for all learning of Practical

Knowledge in the corporate world.

1.9 Source of Data Collected

In this research the source of data collection is:

Secondary data: It is a kind of data which have already being collected for

purpose other than the problem at hand.

The sources I used for data collection are as follows:

Websites


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i. http://www.bikanervala.com/

ii. http://www.bikano.com/

iii. http://www.bikanochatcafe.com/

iv. http://bikanervalahotels.com/
http://www.bikanervala.com/http://www.bikanervala.com/http://www.bikano.com/http://www.bikano.com/http://www.bikanochatcafe.com/http://www.bikanochatcafe.com/http://bikanervalahotels.com/http://bikanervalahotels.com/http://www.bikanochatcafe.com/http://www.bikano.com/http://www.bikanervala.com/


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CHAPTER-2

SWOT ANALYSIS

STRENGTH

i. Good taste

ii. Good variety

iii.

The product has good brand

awareness and a high quality

image.

iv. Good and attractive packing

which always attract the

people.

WEAKNESS

i. Less advertisement

ii. Less availability of brand in

many outlets.

iii. Consumer proximity to retail

outlet.

iv. Limited number of system in

the head office.

THREAT

i. Competition from Lehar,

haldiram and crax.

ii.

Competition from other local

brands.

iii. Increase in cost of raw

material.

iv. Health consciousness among

people.

OPPORTUNITY

i. Increase its outlets.

ii. Launch product for health

conscious people.

iii. By providing proper schemes

bikano can increase its supply.

iv. By providing more profit

margin bikano can increase its

supply.


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2.1 Swot Analysis

2.11 Strength

The company has High brand recall. It has Strong brand name with rich

history of over 60 years. Numerous Bikanervala showrooms serving

multiple cuisines along with traditional sweets and snacks. Number of

products like sweet, bakery products, namkeens, chats and other fast food.

It has a strong brand in Bikano manufacturing world class packaged

namkeens and sweets. Trusted brand for its quality, hygiene and taste.

Strong distribution network making the products available in India and

abroad. Innovation through use of technology in packaging. Bikano chat

cafes present in corporate houses and malls, serving western fast food

along with Indian traditional snacks. The Products available in gift packs

making it an ideal gift

2.12 Weakness

The company has Limited number of stores and mostly concentrated in

North India. It has Strong competition from the unorganized sector also

means limited market share. They head office not have extra system. They

provide less margin to wholesaler & retailer. Marketing of bikano products

are non appropriate to attract customers. Bikano doesnt provide credit

facility to their wholesalers as other brands provide to wholesalers. Less

concentration on customer relationship management


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2.13 Opportunities

The company needs to Increase its presence in international markets.

Increase its number of showrooms, Bikano chat cafes and reach out to

customers throughout India. Advertise itself on various platforms. Launch

products for health conscious people like sugar free sweets and snacks with

low trans-fat, etc.

2.14 Threat

The threat to Bikanervala Company is health consciousness amongst

people. Increase in cost of raw materials can cause threat to the company .

Inflation causing people to avoid unnecessary expenditure. Global

economic instability and recession can also cause threat to bikanervala

2.2The Usp Of BikanervalaPvt. Ltd.

It is committed to hygiene and standardized quality. It has achieved the

unique distinction of becoming the first Indian company in its category to

have been granted ISO-9001:2008 certificate

2.21 Porters Five Forces Model Of Bikano


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i. Threat Of A New Entrants-There is a strong competition from

unorganised section. i.e. .facing competition from local brands like oyes,

fun flips .it also has competition with major brand product like taka tak of

haldiram and tethe medhe of bingo and puff corn of kurkure.

ii. Threat Of A Substitute-The major substitute of bikano is haldiram

.bikano has holding on gift packs but still they have to focus on other

section also.

iii. Industrial Rivalry -In the industrial rivalry, the competitors of the

bikanervala are Haldiram, Lehar, Lays.

iv. Bargaining Power Of Supplier-There is a threat that the raw material cost

which they purchase from the supplier is high, which means that the

bargaining power of supplier is high.

v. Bargaining Power Of Buyer- Due to the less advertisement, the product

of bikano are not much popular. Due to which the bargaining power of

buyer is high and due to which the company is not making

2.22 Enterprise Resource Planning (ERP)

ERP system will enable integration of all business processes of Bikanervala

through a single information system. This will help in inter department

information sharing, communication and provide a real time picture of the

overall performance of the organization. Information provided by ERP

system will enable management in analytic based planning, formulation


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and execution of business strategies. Three major areas are identified for

ERP implementation in BIKANERVALA Pvt. Ltd.

A. Project Management

It deals with Project Management. BIKANERVALA Pvt. Ltd. executes

various types of projects through Strategic Business Units (SBU) operating

from corporate office, regional project and inspection office. Activities

carried out by these SBUs can be classified, as those related to Projects and

others such as training, manpower/resource planning, corporate reporting,

MIS etc.

B. Financial Management

It deals with the activities of Finance and Accounts division. In addition to

accounting, areas like vendor management, project accounting, audit trail, regulatory

compliance, treasury management, risk management, planning and

financial reporting etc. are aimed to be achieved with ERP.

C.

Human Resource Management

It deals with activities related to Human Resource including corporate

services. Aspects like recruitment, promotions, employee grievances, talent

management, administrative areas and corporate services like legal,


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vigilance, Library and company secretarial functions etc. are to be covered

with ERP.

2.3Variation/Deviation

2.31 Selection Process- There is a variation in the selection process

followed by the company (bikano) and what I had studied in classroom.

Selection process of bikano is different from the actual process. As

selection comes after recruitment.

Selected candidates follow various steps of selection process. In bikano

selection process start with the application receiving of selected candidates

and those selected candidates go for the aptitude test. After clearing the test

the next step is interview with the HR person. If candidate pass the

interview with HR person, he or she may enter in to the next step of

selection process i.e. interview with the HOD and when candidate cleared

the interview, he may introduced to the salary section and finally candidate

is selected.

2.32Exit Policy-It is company policy to ensure that employee terminations

are handled in a professional manner with minimal disruption to ongoing

work functions. In bikano the exit policy for employees firstly include the

exit interview, which take place between the employee and HR person. The


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exit interview provides employees the opportunity to freely express views

about working at a company and will be held in strict confidence. The next

step in exit policy is to take NOC from each department. After this

approval is receive. Employees are expected to provide a minimum of 45

days notice of their intention to separate from the company in order to

allow a reasonable amount of time to transfer ongoing workloads. The

employee gets his experience letter within that 45 days and also clear his

salary issues before leaving the organization.


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Chapter-3

Data Collection and Presentation

A. Data collection

Functional Area: Marketing

3.1 Product Planning Process

1.1 Product planning process is the ongoing process of identifying and

articulating market requirements that define a products feature set. Product

planning serves as the basis for decisions about price, distribution and

promotion. Additionally, a small company must have an exit strategy for its

production case the product doesnt sell. Product planning entails managing

the product throughout its life using various marketing strategies, including

product extensions or improvements, increased distribution, price changes

and promotions.

3.11 Product development

Since Bikanervala has a vast variety of products in several categories.

Categories of the products are as follows:

Chats &

snacks

Namkeens Syrups Sweets

PRODUCTS OF THE COMPANY

Gift pack Bak


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Several Marketing, Promotional and Selling activities are being undertaken

by departments for a successful development of products. Bikanervala

works very hard on its product development with all the activities

mentioned below:

Sensory Activities:

Bikanervala conduct sensory activities every month of its products and take

a step ahead for the development of products on the basis of the

performance of the product with the competitors products.

Radio

Bikanervala incurred 7 lakhs on Radio Advertisements and contests run by

RJs and gave gift hampers to all winning customers.

Road shows

By conducting Road shows, samples distribution, discounts, promotional

offers on spot, product development is being done.

Print

Magazines and newspapers Advertisement of own expenses and

collaboration with alliances & companies

Online

Facebook, online website, and other facilities online help in online

marketing of product which helps in product development


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3.12 Products lines of the company

3.13 Popular markets where product is sold

North India, Singapore, London, Middle East countries Bikano product is

much demanded and has a big sales records as the company is growing at

200% in past two years.

3.14 Major competitors

The major competitors of Bikanervala Company are as follows:

a) Haldirams

b)

Lehar

c) Kurkure

d) Nanaji,

e) Bikaji

Product Line

Bikanervala Bikano Bikano chat

cafe

AnganBikanervala

boutique

hotel


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3.2 Pricing policies and strategies

There are many ways to present the 'price' for a product or service to the

customer. Some of the well- known methods are described below

a) Target profit: Target profit is based on the previous records of profit and

growth of the company & market.

b) Perceived value: Pricing decisions are being taken on the basis of

Haldiramspricing strategies by regular comparison of MRP of products.

c) Bundled pricing is done that combines multiple products under one price

like Assorted Papad, Gift packs, Dispensers, combos, etc.

d) Psychological pricing is done in various outlets, shopping malls, super

markets like Big bazaar, Reliance fresh, More, Fair price. For e.g., 3

Namkeens or Snacks pack at Rs.49/-

3.3 Promotion

3.31 Components of promotion mix

The various components of promotion mix of bikanervala are Advertising

which includes Advertising media, e.g. TV ads, Radio, print media. Sales

promotion such as discounts, sales etc., Personal selling and Public

relations.

3.32 Budget Allocation for promotional activities

Marketing department is given a fund for its marketing practices every

year. Rs. 98, 00,000 was provided for the year 2014-15. A budget is


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3.11 Structure of HR Department

Figure-No.3.3: Structure of HR Department

The structure of hr is starts with EVP under that HR head which is further

divided into two managers under each manager they have team of

executives.

Total number of employee is 2000 out of which 1500 employees are

permanent employees and remaining 600 employees are temporary.

EVP

HR Head

Managers

Team of

Executives

Managers

Team of

Executives


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3.12Organization structure and design:

Figure-No.3.4: Organization structure and design:

3.13 Planning Process for HR:

HR Planning processes has been executed once in year before starting of

financial year. It helps to manage time and expenses efficiently in

searching human resource in advance. Employee turnover rate in an year is

8% to 9.5%.

Chairman

Board of

directors

MD

CEO

H.O.D.

Executive

Director

H.O.D.


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3.14 Major reasons for attrition or Labour Turnover :

The major reasons for attrition or labour turnover such as Labour gets

Motivated by another company who pay higher grade. Some labours who

are less engaged in work can also become the reason for attrition.

Sometimes labour dont like the Working conditions of the company.

Sometimes labours are not satisfied with the job which is also one of the

reasons for attrition.

3.15 Sources of recruitment:

The company uses mainly two sources of recruitment:

Internal sources of

recruitment

External sources of

recruitment

Transfers

Promotions

Data base

Referral

Internal job

Job portals

Consultants

Campus

Advertisements

Newspapers

Table-No.3.1: Sources of recruitment


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a. Internal sources of recruitment

This involves recruiting candidates within an organization to fill the

vacancy. Unlike external sources, companies fill the positions through

references of internal employees or current employees promotions to

higher positions.

b. External sources of recruitment

This involves recruiting a candidate through references, networks, job

portals or they may approach recruitment agencies. In order to compete

with other companies &increase their standard, employers hunt for best

talents working for other top companies.

3.16 Managerial employeesselection process

The selection process from executive to manager: In this selection process

the first step is to take an interview by the HR, after this a meeting or an

interview with the head of the department, then meeting between the HR

head and the candidate and the last step is the interview with the director.

The selection process for the designation above to the manager: The first

step in the selection process is interview with the HR and then interview

with (HOD) head of department, after this the meeting with the HR head

and then interview with the director and after passing all the above steps

the last step is to interview with the MD or the CEO. In this company the

induction programme is being held for the duration of one day to seven day

for the new employee.


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3.17 Skills required for the managerial employee

Skills required for the managers are depend upon the function-to-function

and level-to-level. Certain number of years of experience may require for

the managers. Some managers need to clear certifications like PMP before

holding the position.

3.18 Probation period

A probationary period varies widely depending on the business, but can last

anywhere from 30 days to several years. If the new employee shows

promise and does well during the probationary time, they are usually

removed from probationary status, and may be given a raise or promotion

as well. But in bikanervala foods private limited the probation period for

various levels of employees is six months.

3.19 Job Description and Job Specifications of managerial employees:

Job description:

The manager is an employee who is responsible to plan, direct and oversee

the operations and fiscal health of a business unit, division, department, or

an operating unit within an organization. The manager is responsible for

overseeing and leading the work of a group of people. The manager is also

responsible for planning and maintaining work systems, procedures, and

policies that enable and encourage the optimum performance of its people

and other resources within a business unit.


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3.20 Human resource information system:

The Bikanervala uses the ERP as the human resource information system.

A system which seeks to merge the activities associated with human

resource management (HRM) and information technology (IT) into

one common database through the use of enterprise resource planning

software. The goal of HRIS is to merge the different parts of human

resource includingpayroll,labor productivity,and benefit management into

a less capital intensive system than the mainframes used to manage

activities in the past. Also called Human Resource Management system

(HRMS)

3.2 Training & Development

A managerial employee is defined as someone who makes, executes, and

exercises independent judgment about management policies. The types of

training followed by bikano for managerial employees are: Time

management, Leadership and Stress management

Non-managerial employees are the Delegates, skilled and unskilled labour.

They are assigned to perform various tasks and duties and are accountable

to their corresponding managers.The types of training followed by bikano

for non-managerial employees are: Team approach, Decision making and

grooming

Duration of training for managerial employees in bikano is 15 hours per

year and for non-managerial employees in bikano is 30 hours per year. One
http://www.businessdictionary.com/definition/payroll.htmlhttp://www.businessdictionary.com/definition/labor-productivity.htmlhttp://www.businessdictionary.com/definition/labor-productivity.htmlhttp://www.businessdictionary.com/definition/payroll.html


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week time is given for refresher training to the new joiners in bikano. There

are facilities for attending external training programmers in bikano. They

call for the external trainer and they also go for training section. Promotion

policy of the organization is linked with training implementation. The basis

of promotion for managerial and non-managerial employees is based on

performance and not on seniority in bikano. All types of employee

development programme (job enrichment, job enlargement, transfer,

promotion) regarding their career planning is followed in bikano.

Managerial and Non managerial employees give their feedback on training

programmes which they had attended. Number of transfer in a year is 18 in

bikano.

3.3 Performance Appraisal and Recognition System

Performance appraisal is based on PMR (Performance management

review). It is a process where there is a frequent performance review

meeting between the manager and subordinate are held. Initially, monthly

reviews may be used and then extended to quarterly review. Achievement

is considered in annual appraisal process. Frequency of performance

appraisal process in bikano is annual based. The role of supervisor in

performance appraisal system is to give rating to the performance of the

subordinate. Role of self (employee himself) in performance appraisal

system is to achieve the target or goals of the organization.


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Business-to-government (B2G) is a derivative ofB2B marketing and often

referred to as a market definition of "public sector marketing" which

encompasses marketing products and services to various government levels

- including federal, state and local - through integrated marketing

communications techniques such as strategic public relations, branding,

advertising, and web-based communications

Bikanervala Online Head Office

Warehouse

Transit Delivery

Packaging

Customer

Figure-No.3.5:Online Order Mechanism in Bikanervala

In the above figure Customer will make order online on bikanervala website then

Order will flow in HO and same will be sent to ITL after payment received in

Customer will make

order online on

bikanervala website

Order will flow in HO

and same will be sent to

ITL after paymentreceived in account

Order will be processed at

ITL under customer

account TBD

Product release and

packaging for dispatch at

ITL

Appointed logistics

vendor will deliver order

from ITL to customer

Delivery will be

made within 3-5

days depending

upon location

Order delivered to

customer

Customer will get

notification of order statusPayment will be transferred

to ITL on fortnightly basis

against bill raised.
http://en.wikipedia.org/wiki/Business-to-businesshttp://en.wikipedia.org/wiki/Business-to-business


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account after that Order will be processed at ITL under customer account TBD.

The Product is release and send to ITL outlet packaging and dispatching. Then

appointed logistics vendor will deliver order from ITL to customer. The delivery

will be made within 3-5 days depending upon location. Customer will get

notification of order status and Payment will be transferred to ITL on fortnightly

basis against bill raised.

Functional Area: Finance

3.1Profits

3.11 Methods for distributing its profits

The company does not pay dividend to its equity shareholders but instead

invest the profit in further long term expansion of business. Like recently

the company started a new production unit in Rai, Sonipat, Haryana.

3.12 Capital Structure

Contribution of debt, equity, retained earnings etc. in the company's capital

structure

The company does not issue debentures but take term loans from the banks

(HSBC, HDFC, STANDARD CHARTERED). The company right now

have equity of Rs. 0.85 crores, Long Term Loans - Rs. 43.30 crores,

retained earnings - Rs. 94.84 crores. The does not pay dividends to their

shareholders, Hence all the profits adds up to retained earnings. Currently

the status of retained earnings for the year of 2013-14 is Rs. 94.84 crores.


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b) It is used to design the market fluctuations and try to achieve the

economical capital structure for firm

3.3Working Capital

3.31 Requirement of working capital now and year back.

A year back, company had two production units at Greater Noida, N.C.R.

and Lawrence Road, New Delhi, but with a new factory at Rai, Haryana,

the Requirement of working capital has increased.

3.32 Components of working capital.

The Main components of working capital of Bikanervala Pvt. Ltd. are

debtors and creditors.

3.33 Factors influencing the company's working capital requirement.

The companys working capital requirements are influence by the factors

such as nature of the business, the production policies which are made by

the company, the terms of purchase and sale of the company and the

market condition.

3.34 Operating Cycle

Presently the company's operating cycle period is of maximum 10 days at

an average.

3.35 Ways in which the company is trying to reduce its operating cycle

The company always tries to its operating cycle to maintain the cost of

product and to retain the trust of its creditors, they follows various ways

such as by using advanced technology in the production , by lowering the

credit period , by increasing the quality of the inventory and last by

lowering the cost which are held by the company


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3.4Cash and Receivables

3.41 List of their debtors and their types.

The company has many types of debtors some of them are: Exportors,

Distributors, Franchise's Outlets, Government Institutions (Railways,

Canteen store department), Other Institutions (Future Group, Aditya Birla

Group, Reliance Group)

3.42 Discount offered to the distributers and retailors

SCHEMES CHART OF BIKANO IN VARIOUS STATES

S.No. Description Applicable States Varient Primary

Schemes

(in %)

Secon

y

Schem

(in %)

1 Namkeen Rs. 5 Delhi,Haryana,Uttar

Pradesh,Punjab,Chandigarh

All 6.25 1.44

2 Namkeen Rs. 5 Rajasthan All 10.29 4

3 Namkeen Rs. 5 Maharashtra,Madhya

Pradesh,Himachal Pradesh,Jammu

&

Kashmir,Utrakhand,Bihar,Jharkand

,Miscelaneous

All 6.25 0

4 Namkeen Rs. 10 Uttar

Pradesh,Chandigarh,Rajasthan

All 6.25 1.44

5 Namkeen Rs. 10 Punjab,Haryana,Himachal

Pradesh,Jammu &

Kashmir,Madhya

All 1.96 0.74


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Pradesh,Utrakhand,Maharashtra

6 Namkeen Rs. 10 Delhi,Bihar,Jharkand,Miscelaneous

States

All 1.96 2.04

7 Namkeen Rs. 20 All India All 0 2.96

8 Namkeen 200

gms.

All India except Rajasthan All 0 3

9 Namkeen 200

gms.

Rajasthan All 10.87 5

10 Namkeen 400

gms.

All India except Rajasthan All 0 3

11 Namkeen 400

gms.

Rajasthan All 11.04 5

12 Namkeen 1 kg. All India except Rajasthan All 0 3

13 Namkeen 1 kg. Rajasthan All 16 3

14 Namkeen 2 kg. Rajasthan All 6.25 0

15 Snacks Rs. 5 All India except Rajasthan All 5 2

Table-No.3.2:Discount offered to the distributer s and retailors


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3.43 Company's policy for mitigating risk from default of debtors.

To decrease the mitigating risk from default of debtors, the company rely

on receiving timely payment as per the following credit period: Exporters:

40 days, Distributors : 0 days, Franchise's Outlets : 5-10 days, Government

Institutions : 30 days, Other Institutions : 15-20 days. There is no bad debts

3.5Inventory

3.51 Components of inventory

There are two main components of inventory one is Raw Materials which

includes, Oil, Sugar, Besan, Pulses and other is Packing Material.

3.52 Method of inventory management followed by the company.

Since the inventory items are perishable therefore material cannot be stored

for a long period, Hence inventory are stored for a short period of 5-10

days, failing which there can be problems in production capacity.

3.53 Method of inventory valuation followed by the company.

The company uses FIFO (first in first out) method for inventory valuation.

3.54 Problem of shortage of inventory/ surplus inventory

With effective monthly stock taking, there is no shortage or surplus of

inventory in warehouses.

3.6

Sources of Finance

3.61 Long term and Short term sources of finance of the company.

Long term sources of finance of the company includes retained earnings

and long term borrowings from banks and short term sources includes

working capital


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The company shares very good relationship with old as well as new creditors

lasting for long periods. With timely payments and retaining their trust, the

relationship is strong and effective, and of mutual benefit to both.

3.73 Company's current and previous credit policies and terms of

payment.

Usually, we make payments to raw material creditors within 10 days on an

average while within 1 month average to packing material creditors. If in

special cases, creditors are in urgent need, we make the payment within 2-3

days with a benefit of some discount.

3.74 Changes in credit policies and the reasons for the same.

Usually the changes in credit policies are based on the importance and are

as per the agreement between the two parties, like the company make

100% advance payment to foreign parties or importers.

3.8

Investment

3.81 Investment of surplus funds

The entire 100% of surplus fund is invested in capital expansion.

3.82 Criteria for making an investment by the company.

Any investment is made in the company only after checking the feasibility

on the basis of:

i. Technology

ii. Operation

iii. Financial status

3.83 Method of capital budgeting used by the company

Capital budgeting is done on the basis of Pay Back period.


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3.3 Functional Area: Production & Operation Management

3.31 System of Resource Management Deployed by the Company

For management of manpower requirement & provisioning there are consultancies and

HR fulfill. For manpower there is solution provider and for maintenance there is a third

party. For management of materials requirement and provisioning different department

are responsible for fulfilling their needs. For inventory management bikano have the

following options

1. Keeping touch with the vendors.

2. Production houses are the major source for resources.

3. Working on ERP System.

4. Regenerated few other systems also.

3.32 Supply Chain Management by the Company

Supply chain entities and management of their interrelationship

Interpretation of Marketing

Expectation Expectation

Product/service design operation customer

(Product /Service (Product/Service)

Specification)

Figure no-3.5: supply chain management


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Inbound logistic outbound logistic

Call-off to supplier warehousing

Material handling order processing

Warehousing picking

Inventory control delivery

Organization of supply chain function in the company is done through distribution,

logistics, purchase, warehousing, production.

3.33 Quality Management System in Company

System deployed by the company for quality assurance and quality control is based on

software guidelines

Work flow of quality process

1. For Raw and Packing Material

Figure no-3.6: Work flow of raw material and packaging

Information received from store

Receiving of sample from vehicle

Analyses of sample as per defined

Sample meets the standard Sample did not meet thestandard

Material allowed to unload

Material transfer to store

Reject and sent back


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2. For in process material and shop floor

Figure no-3.7: process material and shop floor

Hygiene condition and preoperational checkups

Verification of process and process parameters

ok Not ok

Correct and rectify or rejectContinue production

Online sampling of

roduct

Sent for quality checking

ok

Continue production

Final packaging


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3. Testing of finished goods

Figure no-3.8: Testing of work flow

There is an implementation of standard methods such as statistical quality control (SQC),

TQM, ISO Certification, SQF 2000, ED7 Certificate, HALAL Certificate, FSSAI

Registered, 10PEPC, EIA Certificate

Sample withdrawn from dispatch or shop floor

Details enter in logbooks

Packaging and manufacturing details are checked

ok Not ok

Informed to concern for

rectification

Continue for organoleptic,

chemical and micro test

Ok Not ok


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3.6Functional Area: International Business

3.61 System & Process for International business

National and International requirements for compliance of trade and commerce. For

National requirement for compliance of trade and commerce include supplier, IEC

license, DGFT registration, product labeling as per country requirement. For international

requirement for compliance of trade and commerce include buyer, import license,

warehousing, and distribution channel. Role of E- Commerce in compliance include

online banking. Management of international supply chain is based on planning,

coordination, organizing, staffing, directing, and timely delivery. Raw material access

Procedure includes standardization, quality control, and vendor scrutinizing. Procedures

of Payments are done through advance, through telegraphic transfer, and through letter of

credit. Credit terms includes advance, TDP (document against payment), TDA (document

against actualization). Price fixation depends on demand and supply, geographical

distance, targeted market. Measurement of quality is done as per importing country

quality standardization authority. Distribution network at buyer and supplier level is done

in two ways. 1. Primary distribution by road, and train. 2. Secondary Distribution by sea

and by air. International restriction as per importing country regulation.

3.62 Issues & Challenges Related with Operation.

Foreign exchange management is done by fulfilling the FEMA and RBI guidelines.

Foreign exchange volatility depends upon foreign fluctuation plus currency. Government

through different government promotion supporting authority like APEDA, FIEO,

DGFT. Duty drawback when government refund to exporters. Importing tariff barriers

and exporting tariff barriers like quota and non-quota. The mode which bikano follow


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while entering into international markets is exporting. There are various risks like

monetary receipts, natural disasters, legal and political which took place during

international trade.


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Chapter-4

Functional Analysis of the Company

In all the areas I have analyzed that:

4.1 Marketing

Bikanervala has now become a good brand name and people are now aware of it.

As from its inception Bikanervala focuses more on its product development. Several

Marketing, promotional and selling activities are being undertaken for successful

product development. Bikanervala works very hard on its product development with

all of these activities:

Sensory testing

In these our own product is been compared with the rivals product and necessary

steps are taken for its development. This is the one of major source of product

development.

For other promotional activities it uses TV ads, radio, print media and sales

promotion which includes providing discounts, sales etc., personal selling and public

relation are also conducted. It has a separate budget for its marketing activities for

each year which is been set by the experts.

For its Pricingstrategy it uses MRP of other rivalry products to compare with.

It has a good distribution network of its product in India and abroad also.


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4.2 Human resource management

In this department, they follow a proper structure and proper HR planning is made in

advance. Both internal and external sources are followed for recruitment and

promotion purpose. Various heads of the department do the interview and selection

process. Proper training & development programmes are been conducted as per the

need of the current employees, but for shorter period of time only. Employees are

been promoted and appraised through proper performance management review

system, employees are also been provide with career development opportunities.

Various rewards and compensations are also provided to the employees. Bikanervala

uses the ERP (enterprise resource planning) system as the human resource

information system, which is been very useful to them. Healthy working environment

with proper working conditions are provided to the employees, and all the safety

related policies and practices are been followed in bikanervala for the employees.

Grievance handling is also done at the head office of the bikanervala.

The labour turnover is 8% to 9.5% in bikanervala.

4.3 IT Enables Services (ITES)

Bikanervala follows a proper mechanism for online ordering and delivering of the

products, which has been showed in the above chapter properly. The delivery is made

within 3-5 days depending upon the locations.


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4.4 Finance

Profit distribution

The company doesnt pay dividend to its equity shareholders, but instead invest the

profit for further long term expansion of the business. Profit is been added to the

retained earnings.

Capital structure

Bikanervala doesnt issue debentures but take loans from the banks. There is a change

in companys capital structure in last one year. The shareholders fund has been

increased from Rs. 70.55 crores in 2012-2013 to Rs. 95.69 crores in 2013-2014 due to

increased in retained earnings and also the long term borrowings are also increased to

100% due to new production unit started in different places.

There is also an increase in the working capital in last years due to opening of new

production units in Rai and Haryana. The company does provide various discount

schemes to various distributors and retailers all over the India. The company also

follows the FIFO (First in First out) method of managing the inventory or for the

inventory valuation. Company is known for timely payments to its suppliers, but the

company provides 100% advance payment to its foreign parties or importers.

Investment of 100% is done in capital expansion. Method of capital budgetingis

followed is PAY BACK PERIOD.


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4.5 Production & Operation Management.

# System of Resource Management Deployed by the Company

For management of materials requirement and provisioning different department are

responsible for fulfilling the needs. For manpower there is solution provider and for

maintenance there is a third party. For inventory management bikano is following and

considering some points which have been described in the previous chapter properly.

They follow a proper system for quality assurance and quality control in the company

as also for:

For Raw and Packing Material

For in process material and shop floor

For testing of finished goods

There is an implementation of standard methods such as statistical quality control

(SQC), TQM, ISO Certification, SQF 2000, ED7 Certificate, HALAL Certificate,

FSSAI Registered, 10PEPC, EIA Certificate.


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4.6 International Business

Compliance is been required to conduct business in national and international market. For

National requirement for compliance of trade and commerce include supplier, IEC

license, DGFT registration, product labeling as per country requirement. For international

requirement for compliance of trade and commerce include buyer, import license,

warehousing, and distribution channel. Role of e- commerce is also to be included.

Payment procedures are done through telegraphic transfer and also through letter of

credit. Foreign exchange management is done by fulfilling the FEMA and RBI

guidelines. The mode which bikano follow while entering into international markets is

exporting. There are various risks like monetary receipts, natural disasters, and legal and

political which took place during international trade.

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