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An Industrial Visit Report On Havmor Ice-cream Submitted to: - B.W.T.Institute of Business Administration H.K College Campus Ahmedabad.
PREFACE
Being a BBA student industrial visit forms an essential part of our course. As management is a science and is universally applicable, it is in all organized efforts be it a business activity or any other activity. For achieving perfection in the field of management, one must have both theoretical and practical knowledge. We can acquire theoretical knowledge from books but practical knowledge can be acquired only through such industrial visits. This visit has been useful in the sense it has developed our skills in interpreting and analyzing various functions such as marketing, production, human resource and finance. This report is the part of the practical study and gives immense knowledge about the working of Havmor Icecream.
ACKNOWLEDGEMENT
First of all I would like to thank the Almighty God for his everlasting grace and mercy that guided me throughout my project work. The materialization of the ideas and views of this project have seen valuable contribution of numerous friends and academicians in the form of selfless criticism, well wishers and above all, words of inspiration. The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without the mention of certain individuals who have been of constant help, guidance and encouragement in the making of this project a reality. I sincerely and respectfully thank Mr.Bhaumik Nayak and Ms.Aunkita Pandey for their constant guidance throughout the course of the project. I also express my sincere thanks to my friends for their encouragement and support throughout my project. I put forth my respects and regards to my parents, whose presence steered me through, to the end. Their blessings and moral support were of great inspiration, enabling us to overcome the greatest odds with greatest ease.
PG.NO I II
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1 1.1 1.2 1.3 1.4 1.5 1.6 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.9.1 2.9.2 2.9.3
3 3.1 3.1.1 3.1.2 3.1.3 3.2 3.2.1 3.2.2 3.3 3.3.1 3.3.2 3.3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 4 4.1 4.2 4.3 4.4 4.5
PERSONNEL MANAGEMENT RECRUITMENT, SELECTION AND INDUCTION RECRUITMENT SELECTION INDUCTION TRAINING AND DEVELOPMENT TRAINING DEVELOPMENT PROMOTION, DEMOTION AND TRANSFER POLICY PROMOTION DEMOTION TRANSFER GREIVANCES HANDLING PROCEDURE PERFORMANCE APPRAISAL PERSONAL RECORDS WAGES AND SALARY ADMINISTRATION TOTAL NUMBER OF EMPLOYEES PROVIDENT FUND SCHEME EMPLOYEES BENEFITS AND SERVICES TRADE UNION MARKETING MANAGEMENT PRODUCT PLANNING BRANDNAME ANG LOGO MARKETING RESEARCH MARKET SEGMENTATION
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4.5.1 4.5.2 4.5.3 4.6 4.7 4.7.1 4.7.2 4.7.3 4.8 5 5.1 5.2 5.3 5.4 5.5 5.6 6 6.1 6.2 6.3 6.4 6.4.1 6.4.2 6.4.3 7 8
BASIS OF FLAVOURS BASIS OF PACKAGING BASIS OF CONSUMER SEGMENT DISTRIBUTION CHANNEL PHYSICAL DISTRIBUTION WAREHOUSING INVENTORY ORDER PROCESSING PACKAGING AND TRANSPORTATION SALES DEPARTMENT SALES ORGANIZATION SALES BUDGET PRICING POLICY CHANNEL OF DISTRIBUTION ADVERTISING SALES PROMOTION FINANCE MANAGEMENT FINANCIAL REVIEW ORGANISATIONAL STRUCTURE FINANCIAL PLANNING CAPITALISATION CAPITAL STRUCTURE DEPRICIATION POLICY MANAGEMENT OF WORKING CAPITAL SWOT ANALYSIS CONCLUSION BIBLIOGRAPHY
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Office Address
: 2nd Floor, Kashmira Chambers, B/h. Popular House, Navrangpura, Ahmedabad-380 009
Fax E-mail
: www.havmor.com : ICE-CREAMS
Managing director of the Company President Assistant G.manager Purchase manager Finance & Account manager Quality Control : Mr. Vatsal Parekh : Mr. Sanjay & Miss. Urvi : Mr. Dhiren Shah : Mr. Ajay Mistry : Mr. Pradeep Chona : Mr. Anand khanonkar
Stores Management H.R.Assistance Vice President (HR) Marketing Dept Auditors Bankers
: Mr. S.k. Shetty : Mr. Tejas & Mr. Pramo : Mr. Rajesh Shah : Mr. Kamal Desai : Mr. Mukesh : Corporation Bank
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1.3 HISTORY
Small Beginning, Big Vision, Great Ambitions Havmor Ice Cream began its branded life in 1944 in Karachi, in undivided India. By 1947, it was a popular local brand there. But in 1947, in the wake of the Partition, its founder Satish Chona had to join the exodus into India, with virtually 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. Perhaps he didnt know it then, but he had laid the foundation for one of Western Indias most enduring market legends and good quality, like good character, wins over the situation sooner or later. Today, Havmor Ice Cream is a delicious facet of Western Indias daily life, and part of its market lore. It reaches hundreds of thousands of consumers through 8 main outlets and 3800 plus dealers.
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1.4 MISSION
Good, Truthful, Clean enterprising ethos. Satish Chona, the founder of Havmor began his enterprise half a century ago with a sample guideline ACHAI, SACHCHAI, SAFAI (Goodness, Truthfulness, and Cleanliness) The succeeding generation at the help of company translated this axiom into a way of life and business only the finest ingredients go into making of Havmor ice-creams. The whole manufacturing process conforms to global standard of hygiene, and the companys trade practices are kept totally transparent. Base on new generation technology and in house, 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 decides later Satish Chonn 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 up rightness above its pure business interests.
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CHAIRMAN
MANAGING DIRECTOR FACTORY MANAGER PURCHASE MANAGER
MAINTENANCE MANAGER
HRD MANAGER
QUALITY MANAGER
MARKETING MANAGER
CONTROL MANAGER
ACCOUNTS MANAGER
STORAGE MANAGER
FINANCE MANAGER
DISPATCH MANAGER
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There are various types of raw materials that are used in Havmor during Ice Cream making process. Major Raw Materials used for making Ice Cream are: Milk Cream Skim milk powder Dry fruits Fresh fruits Flavours Sugar Stalulizer Emulsifiers agents Chocolates All the materials used in process are managed by Storage Department. And their quality is checked by Research and Development Department.
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HOMOGENATOR:After being pasteurized at 75C, the mix is transferred to this tank. Here, this mix is kept under the pressure of 50 cem square. This increases the viscosity of the mix. Here the breakdown of the fact glucose is done up to micron size. The Homogenator tank is the heart of the process.
CHILLER:In the chiller, the chilling of the mix is done from 75C to 24c.
STORAGE TANK:After being thoroughly mixed, the mix is stored in this tank. The mix is stored here is called the basic mix and is used for all ice creams. The basic mix is taken to each section for different types of Ice Creams, whether it is cup, candies, cones, etc.
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Cleaning with hot water at 10C for 10 to 15 mins. Alkali cleaner for 20 mins at 10C.
Flushing with hot water. Senttice the whole equipment with hardaphire solution of 200 ppm for 20 mins.
FLAVOURING TANK:Required quality of basic mix is transferred in Flavouring tank additions of essence and Flavouring Color is done as per the recipes of particular ice cream.
CONTINUOUS FREEZER:After starting the continuous freezer, the ice cream will come out within 25 seconds at the temperature of 8C to -5C. If the recipes includes additions of nuts it is done through fruit feeder which is outside the continuous freezer and before the final place of coming out of the ice cream and in case of Sundays different flavor is added through nozzles through which more than two flavors can be added. After coming out from continuous, the ice cream is picked into different boxes, cups, etc. This process is done manually.
COLD STORAGE:After achieving ITC in hardening tunnel, ice cream is transferred in to cold storage and taken as per the market demand. 19
The location of plant or industry means to scientific choice of a region or specific sight in a region where the business unit is to situate. The main object of an industry concern is to maximize profit through minimization of production and distribution cost. The objectives are realized only if the firm is located at a place which offers all economies of production and distribution. * Factor responsible for plant location are: 1. Money, Material 2. Man power, Market 3. Motive power, Management 4. Machinery, Means of Communication 5. Momentum to an early start
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2.6 INNOVATIONS
Quality is undoubtedly very important to establish and retain ones status in a competitive environment. But equally important is innovation constantly coming up with something new to maintain an edge over the competition. Hence, creativity is at the forefront of our activities. Most of our innovations have been based on the consumer feedback we have received from our ardent fans. To please them, to date we have launched over 200 flavors in 600 pack-types and forms. People eagerly await our flavor of the quarter, which has been an on-going event over the years. Here is a representative sample of a few of their innovations: They are the first ones to introduce Dairy Fresh an all natural ice cream which contains no additives, no preservatives, no synthetic Colors or flavour. Nothing but the pure, natural goodness of milk, fruit and nuts. They launched many dry fruits based ice creams, an assortment of traditional Indian ice cream form, which otherwise had to be bought just prior to consumption, and that too from vendors whose quality often left a lot to be desired. They even introduced the Sorbet a fruit juice based frozen dessert. To match their unique products, they have often gone in for unconventional and creative packaging. Like the time when we filled Mango. Orange, Sitafal, Sweet Lime. Ice creams in the intact skins of their fruits. It was a big hit at social gatherings and special occasions. All their innovations are based on a single guiding principle i.e. Give the consumer what he likes and wants, and not what we want him to like?
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1) MAINTENANCE UNIT:
This is the main unit of the company. The heavy machines are installed here the unit 3 compressor which help in codling the ice-creams. There are generators also because in case of a power failure, it has to be switched on to keep the product fresh and cold. This unit also contains the boilers.
2) MANUFACTURING UNIT:
In this plant all the required raw material are mixed and then it is processed the raw material goes through many Thom formations before it becomes the final product. The actual processes of making ice-cream starts and after ice-cream are manufacture and they are to the cold storage.
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5) ETP UNIT:
ETP means effluent treatment plant there all the waste water is treated thoroughly and disposed off. The treatment is very much necessary because of the government policy that the chemical before disposing.
6) LABORATORY:
The laboratory of Havmor takes care of hygiene of the products each and every product is checked and certified over here before being launched, At most each taken on aspect of quality. 7) PACKAGING UNIT: In this section the packaging of the product are done. The manufacturing date and best before information are labeled over here. Besides it is the store room where the packets are and used where necessary.
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This is typical job-shop type of production, where the equipment performing similar operation is grouped together. In this layout more emphasis is given to specialization or functional homogeneity on the various components of the system. All operations of similar nature & grouped together in the same department or part of the factory. E.g.; grinding machine is located in any are, etc.
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CHAPTER-3
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PERSONNEL MANAGEMENT
As the term applies, personnel management is the management of human resources in an organization and is concerned with the creation of harmonious working relationships among its participants and bringing about this utmost individual development, such management is concerned with leadership in both groups and individual relationship and personnel management. It effectively describes the process of planning and directing the applicants, development and utilizations of human resources in employment. In fact, personnel management undertakes all those activities, which are concerned with human elements in an organization. Whatever functions are listed therein, the main objectives of these functions are to bring together expertise in a scientific way and to create that motive, a group to achieve its goals economically, effectively and speedily. According to Havmor, HRD plays a major role in conducting specialized training programs, encouraging innovative ideas, inoculating willingness to accept change and rewarding out this with an incentive package. They believe that their plants are most valuable assets who have made Havmor what it is today, and it is they who will take them for beyond the horizon, the days to come.
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The recruitment & selection process is intimately connected with overall manpower system. It is the primary duty of the personnel department to procure and maintain the adequate qualified working force of various personnel necessary for running the organization. It is very important function even for the establishment and development of business.
3.1.1 RECRUITMENT:
Recruitment refers to attempt of getting interested applicants and providing a pool of prospective employees so that we can select right person for right job. In Havmor the recruitment sources can be classified into two broad categories. For recruitment of skilled workers, advertisement is given in newspapers and unskilled workers are recruited from local areas.
3.1.2 SELECTION:
Selection is the process in which candidates for employment are divided into two classes those who are to be offered employment and those who are not.
The selection process of Havmor Co. is done as under * * * Preliminary Interview. Application. Interview. 28
29 * Final Selection. Following are the broad headings under which the qualities desirable for a suitable candidate may be grouped. * Educational and technical qualifications * * * * * Intelligence Responsibility involved and initiative required Ability to command, to obey Health and physique Ability to work in the conditions in which the job is performed.
3.1.3 INDUCTION:
Induction refers to the job and organization. The purpose is to make the employees feel at home and develop a sense of pride in the organization and commitment to the job. Induction is a technique by which a new employee is rehabilitated into the changed surroundings and introduced the practicing policies and purpose of organization. Induction of employee is done by every department for every week after selecting of 2 to 3 days.
3.2.1TRAINING:
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30 Training is the organized procedure by which people learn knowledge or skill for a definite purpose. In this modern era, training is very important. In Havmor Ice-creams, there is also modern type of machines which follows modern technology. Many workers dont know to use them. So, they teach them how to use machineries.
3.2.2 DEVELOPMENT:
Development is an organized and planned process and program of training and growth by which individual manager or executive at each level of management hierarchy gains and applies knowledge, skills, insight and attitudes to manage workers and the organizations effectively. In Havmor Group of Co. HR coordinates the training. Sometimes staff is send outside the company for training purpose or experts are called up to give training to the employees. Company also gives training to their workers according to the job. Generally, training for 7 days is given to workers.
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Havmor Co. also gives promotion on the basis of all over performance basis. Company also considers merit basis and seniority basis. Top level management gives promotion.
3.3.2 DEMOTION:
Demotion has been define as the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility. In other words, demotion refers to the lowering down of the status, salary & responsibility of an employee. Havmor Co. gives demotion when any employee is not able to do his work by any reason.
3.3.3 TRANSFER:
Transfer refers to changes in jobs that involve little or no change in status, responsibility and pay. Havmor Co. does transfer to their employee. Employees are transferred from one shift to another shift, as per the requirement.
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In all the companies grievances always exist irrespective of size and unit. In some employee have complaints against employees. The grievances may be real or imaginary valid or invalid. In Havmor, there is specific grievance handling procedure. Whenever, there is any grievance, the employees meet first to the supervisor and if not solved then employees meet to the concerning department head and management tries to solve the grievance by considering the acceptable demand of the employees and the workers also keep themselves ready to achieve the targets disclaimed by the management.
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Havmor Co.s style of keeping personnel record is very scientific and systematic. The company keeps one file for each employee. In this file, you can get each & every information about employee. The information like wages, salary, training & development, recruitment & selection, pension, provident fund, discipline, past experience, birth date, blood group, qualifications, behavior of employee in the company, etc. are noted in this file.
The company has total staff strength of 420. Which includes 200 unskilled workers and 220 skilled? The company recognizes the important role that its employees used to play the growth of various business activities. 33
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Employees are also provided previous leave, casual leave, and sick leave. Employees in Havmor are also provided the benefits like PF, ESI Scheme, etc.
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35 Safety facility is provided to workers as in food items utmost safety is required and medical check up to the workers is also done as and when required.
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Market Segmentation is a full larger group having similar wants. Segmentation is consumer oriented marketing strategy. Market segmentation gives the formal segmentation to the fact that wants and desires of consumers diverse and we can orient specific category or the segment of the market, so that supply will have the best correlation with demand. Varied and complex buyer behavior is the root cause of market segmentation. Market consists of buyers and buyers differ in one or more respects. They may differ in their wants, purchasing power, geographical locations, buying practices. Any of these variables can be used to segment a market. The ice cream market is segmented in following three ways:
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4. Parlors.
Retail and impulse together account for 70% of this market.
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In the field of marketing, channels of distribution indicates the routes of pathway through which goods and services flow or move from producers to consumers. The route of channels of distribution includes the manufacturer and the consumer as well as all intermediaries. These components are linked in the channel system by one or more of the marketing flows, such as transfer of title of ownership, physical distribution of merchandise, transfer of title of ownership, physical distribution of merchandise, transmission of marketing information and the flow of money in the form of payment of prices and other dues. The channel of distribution of Havmor is as follows: Manufacture C & F Agents Distributors Dealers & Retailers Customers
The above channel strategy defines the channel members. The finished goods first go to C&F Agent is not available then the finished goods directly go to Distributors. HO (i.e. Ahmedabad Office) constantly watches the moments the orders given in Dispatch Department by various C&F Agents and Distributors. 43
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Havmor has 32 distributors and 4000 retail outlets. The network is kept alive by large flat of refrigerated vehicles; refrigerated equipments and retail freezers are sources from world leaders in technology, so as to deliver quality products to the consumers, which is a commitment at Havmor. Marketing Department also coordinate with Dispatch Department to get the order from C&F Agents and Distributors, and try to see the moments of dispatch that orders as early as possible by clubbing various distributors in one route. And at last dealers get the goods from the distributors.
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4.7.1 WAREHOUSING:
As ice cream is a perishable product and it must be kept in cool place to maintain its quality for few days, Havmor has cold storages at different ends. These ends are factories, C&F agents, Distributors and Dealers. The temperature kept in these storage houses is as low as 25C.
4.7.2 INVENTORY:
For the raw material, Havmor keeps the inventory. The inventory of the packaging material is kept as low as possible and according to the demand forecasted and growth rate of the market. Ice cream is product of impulse category that requires proper storage, to keep it in a proper condition. The production and consumption system also such that, the production is done through the whole year and main demand is in summer season. So every company has to store ice cream properly. Company has enough storage facility at their all plants, and all C&F agents have their own cold storage facility, so they keep the stock as per their requirement i.e. at the time of promotional scheme period or in summer they maintain high stock, the C&F agent carry the stock in bulk and they supply the ice cream to distributors or dealers, who also have proper freezing facilities.
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46 The designing distributors system is to study what the customer wants and what competitors are offering customer, interested in several things such as on time delivery. Havmors willingness is to meet customer needs, careful handling of merchandise to take back defective goods and re-supply them quickly and to carry inventory for customer.
4.8.2 TRANSPORTATION:
Ice cream requires very low temperature in terms of -25C, so the Van used for the transportation is having the chillers. Company is acquiring Van on the contract basis.
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Havmor considers following factors for forecasting the Sales: Observing Market Trends. Past figures related to consumption pattern. Deciding the future strategy.
Using the above factors, experts in the sales field use their expertise and give their opinion for the next years sales. Thus, Havmor use Jury of Expert Executive Opinion.
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A price policy is the standing answer to the firm to recurring problem of pricing. It provides guidelines to the marketing manager to evolve appropriate pricing decisions. There are many methods of deciding pricing. It depends on the organization that which method it wants to adopt. Policy on pricing relative to costs: Havmor follows Full Cost / Cost plus pricing. Full Cost pricing, no sale is made at a price lower than that covering total costs, including the variable costs and allocated fixed costs.
For Example, X- Cost of Production X+Y- Cost of goods sold X + Y + 6% - Cost of goods sold + distributors Margin X + Y + 6% + (12% to 20%) = MRP Dealer margin added to above (Consumer Price)
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5.5 ADVERTISING
It is defined as any paid form of non-personal presentation and promotion of ideas, goods and services by identified sponsor. It is impersonal salesmanship for mass selling, a means of mass communication. Havmor Company has used many media of advertising such as press media, which includes newspapers and magazines; outdoors advertising that includes posters, boards and electric display, multimedia including web site, etc. Product boreal magazine They have attended an exhibition in world level and in India more than 50 times. In product today magazine Tender world In industrial express Machine tools Local channels
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Samples, coupons. Price packs. Premiums. Contest. Free trials, Price off. Allowance of goods.
Havmor company has done all promotional activities with a view to increase sales of products and to attract a new customer to companys product. Company has provided many offers such as Buy one- Get one free, Buy family pack and get attractive gift free, etc. Company has also done dealers promotional activities include cash discount on purchase, display and advertisement allowances, etc.
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56 A financial plan is a statement estimating the amount of capital and determining its compensation and another important aspect of financial plan is to determine the pattern of financing. Before raising finance it is essential to make estimates for long term as well as short tern financial needs. Long term financing is generally needed for fixed capital requirement i.e. purchase of fixed assets. Short term finance is generally needed for working capital requirement i.e. marketable securities, debtors, etc.
In Havmor, the financial planning is done for long tern or short term financial requirements. Financial planning is necessary to reduce the cost of finance and all the long term and short term finances is raised through family funds and overdrafts. The requirement of all the long term is also fulfilled through bank as and when needed.
6.4 CAPITALISATION
The term capitalization refers to the process of determining the plans if financing. It includes not merely the determination of the quantities of finance required for a company but also the decision about the quality of financing. Capitalization includes following aspects:
Estimating the total amount of capital to be raised. Determining the types of securities to be issued. Determining the composition or proportion of the various securities to be issued.
Capitalization comprises of a companys ownership capital, which includes capital stock and surplus in whatever form it may appears and borrowed capital which consists of bonds or similar evidence of long term debt. In Havmor, the capitalization includes both the aspects i.e. short term as well as long term. 56
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Capital required for a business can be classified under two main categories. 1. Fixed Capital. 2. Working Capital.
The concept of working capital is further divided into two broad parts they are Gross Working Capital. Net Working Capital.
Gross Working Capital =Total Current Assets Total Current Assets= 2702.4(Rs in Lacs) Total Current Liabilities= 1097.7 (Rs. In Lacs) Net Working Capital= Current Assets Total Current Liabilities = 2702.4 1097.7 (Rs. In Lacs) = 1604.7 Lacs
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WEAKNESS
Less use of advertising medium Lack of Professionalism Prices are somewhat high as compared to Amul.
OPPORTUNITIES
Ability to increase production due to installation of new technology To sell their Ice Creams in other states
THREATS
Increasing number of competitors Increasing demand of Amul
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CHAPTER-8
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CONCLUSION
After visiting Havmor, it seems that Ice Cream is the King of Gujarat. I felt glad of being a part of it. The visit to such a huge and reputed industry has improved my practical knowledge of working in industry and its various departments. Havmor is an industry that is very well equipped by the latest technology and efficient human resource.
After studying the marketing strategy of the Havmor, I conclude that they are horse for their competitors and progressing towards success though it has two strong competitors in Gujarat, but it has already planned to give them a tough challenge in the year to come. It is difficult to comment right now; weather Havmor will be able to make their success inroads but its new innovative marketing strategy have given a tough challenge to its competitors. I hereby wish them luck for the future.
I conclude that the work of preparation project report is glared with co-operation, unity and team work. Once more I am very thankful to the management of Havmor Food Pvt. Ltd., for making our report both beautiful & comfortable.
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BIBLIOGRAPHY
Sr No. 1. 2. 3. 4. Title of the book Personnel management Kings marketing mgt. [2nd Edition] Financial mgt. [3rd Edition] Business organization & management Author C.B. Memorial M.M.Varma & R.K. Aqarwal M.Y. Khan & P.K. Jain M.C. Shukla Publication Himalaya Publishing House King book Educational Publishers Tata McGraw Hill Publishing co. ltd. S. Chand & Company
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