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AVIE BRAR
VARINDER SINGH
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Company CREMICA is one of the largest food processing
companies of India with an annual growth rate of 50%in the last 4 years.
It was established in 1978 by Mrs. Bectors.
Turning her passion for ice cream- making (also herhobby) into a small backyard enterprise.
She established the CREMICA Group today a widelydiversified food products and services company withan annual sales in figure of INR 1 billion.
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Cremica products CREMICAs presence in the market is visible on
account of its vast range of products, which includes:
Biscuits, Confectionaries, Sauces, Jams and Ketchups Indian Snacks, Ready to Eat Food, Condiments
Frozen Products, Bakery Products.
In this assignment the supply chain ofbiscuits
(glucose) was studied.
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Production The production capacity of the plant is 1.5 lakh
cartons/ month.
1 carton = 142 packs.
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Product Biscuits : the unit produces following types of
biscuits.
Salties, Cream, Cookies, Glucose. Glucose : This range of Glucose Biscuits, enriched
with glucose, milk and the right amount of extravitamins, include the Premium and the Milkies variety.
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Coverage Area The production unit of Ludhiana at Laddowal mainly
caters whole Punjab, Delhi, Haryana, and Himanchal-Pradesh.
It offers its product in bulk to Indian Army, IndianAirlines, Barista Coffee Shops , Caf Coffee Day,Reliance Retail Stores, Jet Airways, Indian Railways
and prestigious institutions.
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Exports The premium quality biscuits are exported toAfrica,
Australia, Caribbean, Canada, USA and UK.
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Competitors The two main competitors of the company are :
Britannia and Parle.
It too faces a small amount of competition fromunorganized food processing units.
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Competitive advantage Creamica is having the first movers advantage in case
of manufacturing Twin cream biscuits.
High quality assurance, even incase of a singlebreakage of biscuit in pack is liable to buyback by thecompany incase of wholesaler and 50% incase ofretailer.
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Distribution Channel The product is distributed through the company
owned vehicles i.e. trucks to different destinations.
The company follows two types of channels which areas following.
Type one and type two
Type one includes wholesaler in the distribution
channel while the other method provides goods toretailer directly.
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Distribution Systemcompany
dealer
wholesaler retailer customer
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Margin Company provides 7% commission +1% cash discount
on each unit against Rs. 3.72 (incase of 5 Rs. Biscuits)
Dealer gives 3% or 4% from his own commission(7%)to wholesaler accordingly.
Retailer enjoys the M.R.P. of the product.
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Order Processing Orders are brought by the salesman, which are shown
to the finance Dep't. For further process of the order.
Most of the orders are based on the advance payments.
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Cost Reduction Strategies Reducing the actual weight of the biscuits
considerably.
One of the main competitor Parle sells at Rs. 5 for 94gms. packing while Cremica reduced to 72 gms.
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ProcurementA good quality wheat is bought from near by a Local
Mandi in bulk purchase.
The cleanliness is done in the Phillaur unit and whichis then transported to Laddowal plant.
Last year an export purchase of Sugar was made fromBrazil which incurred huge losses to the company due
to low prices of the Sugar in the local market.
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Measuring Demand and Supply The measuring and matching the demand and supply
is taken care of by ASM ( Area Sales Manager ).
ASM is assisted by 1 to 2 sales executives and controls15- 20 sales man.
First of every month meeting of all the ASMS, salesexecutives and salesman is done.
Old targets are discussed and new are fixed. For predicting demand for a particular month in the
current year the sales of last year are seen in samemonth.
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