Kanpur Confectionaries

Private Limited- Case

Team 1

Evolution Of KCPL

1945- MKG- Jaipur, Rajasthan

1960- Candies Market Leader
1970- Biscuits venture(extension)
1973-74- Second position in
market(110 tonnes/month)
1980-81- Turnover Rs.2 crore(15%
rise)
1983-84 Increased to Rs. 3 crore

Operations of KCPL

100 grams pack

90 Permanent Labors
6 Casual labors/ tonne
Uneven Production(2 to 6 tonnes)

Venture
Pearson Health
Drinks Ltd
-High price
-A- one Good
Health
-Relied on
KCPLs expertise

APLs Offer
-CMU
-Initial- 70
tonnes
-Inspection
-Conversion
charges- Rs. 1.5 /
kg

Advantages
-Surplus
Capacity utilization
-Expertise
-Focus on only
Manufacturing
-Assured return

Disadvantages
-Loss of
Independence
-Dilution of MKG
-Family prestige

Questions???
Was the Conversion charge fair?
Would there be Interference of APL in
manufacturing?
Options available

Thank you