Applied Management in Business: Learning from Existing Businesses

 

ANMOL FOOD PRODUCTS: STRUCTURING A PROJECT EFFICIENTLY WITH THRUST ON THE MARKET PLAN

 

The enterprise, registered as a private limited company, has been involved in marketing processed food products. It now proposes to manufacture sauces, jams and other products. The unit is registered with the Ministry of Food Processing Industries. The key promoters include a cost accountant and a scientist who have earlier worked with CFTRI, Mysore. The cost accountant worked for a multinational and also has substantial experience in marketing confectionery in Karnataka. He also has experience in catering and has supplied packed meals to hospitals and banks in Mysore city. His enterprise had then undertaken contracts to run canteens in various large factories in Mysore. The experience of the promoters both in the catering field and in marketing products in the sector helped them evolve their project well.

 

Several products are proposed to be manufactured by this enterprise. These include sauces, squashes, jams, ‘masala’ paste, ready-to-eat products and pickles. Sauces for example, include tomato sauce, chilly sauce and soya sauce. Jams include strawberry and pineapple jam. Ready-to-eat products comprise tamarind rice mix, tomato rice mix and sambhar. Pickles include mango, mixed vegetable, lemon, garlic and green chilly. Products are offered in various packing sizes to meet purchase preferences of different customers and consumers. Squashes include mango, orange, grape, pineapple and strawberry, and ‘masala’ powders largely include ‘garam masala’ powder.

 

Reducing production risk in terms of raw material price fluctuation

 

The main ingredients for sauces are tomato, green chilly and soya, which are to be procured in season, processed and retained, in preserved form like puree. Inputs/ingredients are to be procured fresh and the food stuff prepared and then processed under high temperature and pressure in retorts under water for 20 minutes to sometimes several hours, depending on the properties of the products. With regard to pickles, for instance, main fruits, vegetables and ‘masala’ ingredients are to be procured in season. They are to be then converted into intermediaries like paste. The ‘masala’ ingredients are to be thoroughly cleaned and procured for preservation. When production of various pickles is planned the fruit/vegetable and ‘masala’ ingredients is processed into final products. So also with regard to ‘masala’ powders, raw materials and ingredients are procured during season, thoroughly cleaned and preserved, depending on product formulation. Different ingredients are drawn and processed either separately or together to obtain the final product. The enterprise proposes to effectively reduce the risk in terms of high raw material price fluctuations and develop scope to secure high margins during off season in different products.

 

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