Summer Training Project On FMCG

A SUMMER TRAINING PROJECT REPORT
ON
A STUDY ON MARKETING AND MERCHANDISING STRATEGY USED IN

FMCG SECTOR AT KIZ FOOD LTD.
A report submitted to Ishan Institute of Management & Technology, Greater
Noida as a partial fulfillment to full time Post Graduate Diploma in Business
Management.
Under the Guidance of
MR. KRISHNA SINGH
(SALES MANAGER)
SubmittedTo:
Dr.D.K.Garg,
Chairman,
IIMT.Gr..Noida
Submitted By:
Shiva Singh
ENRNo:19009
19th Batch
PGDM
Ishan Institute of Management & Technology

1A, Knowledge Park -1,Greater Noida, Dist.-G.B.Nagar (U.P.)
Website:www.ishanfamily.com
E-Mail: student@ishanfamily.com
PREFACE
Theoretical knowledge is the fundamental weapon for any management student. But apart
from theoretical studies we need to experience a deeper insight into the practical aspects of
those theories by working as a part of organization during our summer training. Training is a
period where a student can apply his theoretical knowledge on practical field. Primarily
practical knowledge and theoretical knowledge have a very vast difference. So this training
has high importance as to know how both the aspects can be applied together.
The study of management acquires most crucial position in the business administration. In
order to be successful, it is necessary to give priority to the management in an organization.
But it cant be denied that the study of management would be more educational,
materialistic and even more interesting, if it is to be paired with the work in organization as
an employee.
The training session helps to get details about the working process in the organization. It has
helped me to know about the organizational management and discipline, which has its own
importance. The training is going to be a lifelong experience.
CERTIFICATE
This is to certify that the project work done on A STUDY ON MARKETING AND
MERCHANDISING STRATEGY USED IN FMCG SECTOR AT KIZ FOOD LTD.
submitted to Ishan Institute of Management and technology, Greater Noida by SHIVA
SINGH in partial fulfilment of the requirement for the award of the degree of Post Graduate
Diploma in Business Management is a bonafide work carried out by him under my
supervision and guidance. This project report is the original one and has not been submitted
any where else for any other degree/diploma.
Date:
Seal/Stamp of the guide
Name of the guide

Mr. Krishna kumar
Address: - Lucknow
ACKNOWLEDGEMENT
Any big task cant be achieved by a single person, when we want to achieve the goals &
objectives of the organization, we do work in a team, & all team members fulfill his
responsibility according his skills. I would like to say thanks to all those persons who helped
me in whole project. With deep sense of gratitude, I would like to give my special thanks to
our Honorable Chairman Sir, Dr. D.K.GARG who gave me the opportunity to done this
summer internship project.
I am very much thankful to Mr. Krishna Kumar who guided me in a best way to make this
project successful.
I am also thankful to Mr. T.K GUHA sir who helped me in this project.
Last but not the least; I am also very much thankful to my guardians, seniors, our batchmates and friends for their continuous encouragement and moral support in preparing this
project.
DECLARATION
The summer training project report on A STUDY ON MARKETING AND

MERCHANDISING STRATEGY USED IN FMCG SECTOR AT KIZ FOOD LTD.
under the guidance of Mr. Krishna Singh (Sales Manager) is the original work done by me.
This is the property of the institute & use of this report without prior permission of the
institute will be considered illegal & actionable.
Date :
Signature
SHIVA SINGH
PGDM (BM)
ENR - 19009
19th BATCH
10
EXECUTIVE SUMMARY
Being a management student, I was assigned the most relevant title, as regards Summer
Training project, on Marketing And merchandising strategyKiz Food Ltd. To execute
the assigned task, I had to know about the product and made my customer aware about Kiz
FOODs product or to convince them that they have made the right choice. To fulfill this
purpose I got detailed information about the products ofKiz FOOD LIMITED and learn
about their features and specialty so that I can do my task easily.
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper, and chocolate bars.
India's FMCG sector is the fourth largest sector in the economy and creates employment for
more than three million people in downstream activities. Its principal constituents are
Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess
of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to
maintain a high growth rate. FMCG Industry is characterized by a well established
distribution network, low penetration levels, low operating cost, lower per capita
consumption and intense competition between the organized and unorganized segments.
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry

primarily deals with the production, distribution and marketing of consumer packaged
goods. These are products that have a quick turnover, and relatively low cost. Consumers
generally put less thought into the purchase of FMCG than they do for other products.
Though the absolute profit made on FMCG products is relatively small, they generally sell
11
in large numbers and so the cumulative profit on such products can be large. Some of the
prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The
industry also engaged in operations, supply chain, production and general management.
Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd,
with domination in their key categories, have improved their market shares and
outperformed peers in the FMCG sector. This has been also aided by the lack of competition
in the respective categories. Single product leaders such as Colgate Palmolive India Ltd and
Britannia Industries Ltd have also witnessed strength in their respective categories, aided by
innovations and strong distribution. Strong players in the economy segment like Godrej
Consumer Products Ltd in soaps and Dabur in toothpastes have also posted market share
improvement, with revived growth in semi-urban and rural markets.
12
13
TABLE OF CONTANT
S. NO.
PARTICULAR
CHAPTER -1
Introduction of the company
CHAPTER-2
PAGE
a)
Turnover of the company
b)
Marketing Segmentation
c)
Head office of the company
d) Plants of the company in India

History of the company
Goals and objective of the company
CHAPTER-3
Awards and Achievement of the Company

Product and Services of the Company
CHAPTER-4
Sales Promotion Strategy of the Company
CHAPTER-5
Marketing Strategy ofKiz Food limited
CHAPTER - 6
Competitors of the company

Product & Features of the competitors
CHAPTER-7
Comparison of sales analysis of the company with its

competitors.
CHAPTER-8
Corporate Social Responsibilty of the company.
CHAPTER-9
After sales services of the company.
14
CHAPTER-10
R & D activity of Kiz Food limited.
Market position ofKiz Food limited.

CHAPTER-11
CHAPTER-12
SWOT analysis ofKiz Food limited
CHAPTER-13
Interview of Sales Executive
CHAPTER -14
Results & conclusion.
CHAPTER -15
Recommendation
CHAPTER -16
Bibliography
CHAPTER -17
Findings
CHAPTER -18
Word of Thanks
15
16
CHAPTER 1
INTRODUCTION OF FMCG INDUSTRY
Products which have a quick turnover, and relatively low cost are known as Fast Moving
detergents, as well as other non-durables such as food , bulbs, , paper products, and plastic
goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food
products, soft drinks, pickle, and chocolate bars.
India's FMCG sector is the fourth largest sector in the economy and creates employment for
more than three million people in downstream activities. Its principal constituents are
Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess
of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to
maintain a high growth rate. FMCG Industry is characterized by a well established
distribution network, low penetration levels, low operating cost, lower per capita
consumption and intense competition between the organized and unorganized segments.
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry

primarily deals with the production, distribution and marketing of consumer packaged
goods. These are products that have a quick turnover, and relatively low cost. Consumers
generally put less thought into the purchase of FMCG than they do for other products.
Though the absolute profit made on FMCG products is relatively small, they generally sell
in large numbers and so the cumulative profit on such products can be large. Some of the
prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The
industry also engaged in operations, supply chain, production and general management.
Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd,
with domination in their key categories, have improved their market shares and
outperformed peers in the FMCG sector. This has been also aided by the lack of competition
17
in the respective categories. Single product leaders such as Colgate Palmolive India Ltd and
Britannia Industries Ltd have also witnessed strength in their respective categories, aided by
innovations and strong distribution. Strong players in the economy segment like Godrej
Consumer Products Ltd in soaps and Dabur in toothpastes have also posted market share
improvement, with revived growth in semi-urban and rural markets.
FMCG INDUSTRY IN INDIA
In India, companies like ITC, HUL, Colgate, Cadbury and Nestle have been a dominant
force in the FMCG sector well supported by relatively less competition and high entry
barriers(import duty was high). These companies were, therefore, able to charge a premium
for their products. In this context, the margins were also on the higher side. With the gradual
opening up of the economy over the last decade, FMCG companies have been forced to
fight for a market share. In the process, margins have been compromised, more so in the last
six years (FMCG sector witnessed decline in demand).
It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015from US
$ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are
the most promising market for FMCG, and give brand makers the opportunity to convert
them to branded products. Most of the product categories have potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income. The big firms are
growing bigger and small-time companies are catching up as well
Products which have a quick turnover, and relatively low cost are known as Fast-moving
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper, and chocolate bars. A subset of FMCGs is
Fast Moving Consumer Electronics which include innovative electronic products such as
mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced
more frequently than other electronic products. White goods in FMCG refer to household
18
electronic items such as Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000crore FMCG segment was one of the fast growing industries in India. According to one
study, the industry grew 5.3% in value between 2004 and 2005.The Indian FMCG sector is
the fourth largest in the economy and has a market size of US$13.1 billion. Well-established
distribution networks, as well as intense competition between the organized and
unorganized segments are the characteristics of this sector. FMCG in India has a strong and
competitive MNC presence across the entire value chain.
The term FMCG (fast moving consumer goods), although popular and frequently used does
not have a standard definition and is generally used in India to refer to products of everyday
use. Conceptually, however, the term refers to relatively fast moving items that are used
directly by the consumer. Thus, a significant gap exists between the general use and the
conceptual meaning of the term FMCG.
Further, difficulties crop up when attempts to devise a definition for FMCG. The problem
arises because the concept has a retail orientation and distinguishes between consumer
products on the basis of how quickly they move at the retailers shelves. The moot question
therefore, is what industry turnaround threshold should be for the item to qualify as an
FMCG. Should the turnaround happen daily, weekly, or monthly?
One of the factors on which the turnaround depends is the purchase cycle. However, the
purchase cycle for the same product tend to vary across population segments. Many lowincome households are forced to buy certain products more frequently because of lack of
liquidity and storage space while relatively high-income households buy the same products
more infrequently. Similarly, the purchase cycle also tends to vary because of cultural
factors. Most Indians, typically, prefer fresh food articles and therefore to buy relatively
small quantities more frequently. This is in sharp contrast with what happens in most
western countries, where the practice of buying and socking foods for relatively longer
period is more prevalent. Thus, should the inventory turnaround threshold be universal, or
should it allow for income, cultural and behavioral nuances?
Characteristics of FMCG Products:
Individual items are of small value. But all FMCG products put together account for
a significant part of the consumer's budget.
19
The consumer keeps limited inventory of these products and prefers to purchase
them frequently, as and when required. Many of these products are perishable.
The consumer spends little time on the purchase decision. Rarely does he/she look
for technical specifications (in contrast to industrial goods). Brand loyalties or
recommendations of reliable retailer/dealer drive purchase decisions.
Trial of a new product i.e. brand switching is often induced by heavy advertisement,
recommendation of the retailer or neighbors/friends.
These products cater to necessities, comforts as well as luxuries. They meet the
demands of the entire cross section of population. Price and income elasticity of
demand varies across products and consumers.
Rank wise Largest FMCG Brand in India by Sales...
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestle India
4. GCMMF (FMCG)
5. Dabur India
6. Parle (India)
7. K.I.Z. Food limited
20
INTRODUCTION OF THE COMPANY
K.I.Z. Food is the culmination of a connoisseurs dream of extending finest of Indian food
across the world. Through its variety of mouth watering food recipes, K.I.Z. seeks to tickle
the taste of people. It offers silver onion & vegetables in natural vinegar, acetic acid and
brine. Apart from this, K.I.Z. offers a wide gamut of Pickles, Chutneys, Sauces, ready-to-eat
Gravy Dehydrated Onion, Spices etc.
The R & D division at K.I.Z. is at the forefront of researching and improvising recipes of
different Indian cuisines. In order to provide authentic Indian flavours and maintain highest
quality standards, purest ingredients are used in manufacturing various delicacies. The
combination of variety, quality and taste has enabled K.I.Z. to carve a niche in the food
industry, in a very short span of time.
Led by a group of ardent food aficionados, K.I.Z. is relentlessly working towards
introducting a wider and better range of products.
ProfileKizFL was incorporated in 2008 and is engaged in processing and exporting a wide
variety of processed food items viz. pickles, chutney, sauces, pastes, dehydrated onion &
garlic products, onions and mix vegetables in brine/vinegar. The associate concerns of the
company namely Murtuza Foods Pvt Ltd, H.M. Dehy Foods and A&F Dehy Foods are
engaged in preparation of dehydrated onion and garlic products.
21
TURN OVER OF THEKiz FOOD LIMITED

Company Information
Manufacturers Of vinegar,fried onions,pickles,paste,chutney
Company Facts
Business Type :
Manufacturers
Year of Estd. :
2001
Market Cover :
Australia, Canada, Africa
Company Turnover Rs. 0.5 to 2.5 Crore Approx.

No. of Employee :
150 200
KIZ Foods Limited Rating History Instrument Amount Rating Long 0-Term Fund Based
Facility- Cash Credit 3.20 [ICRA]BB- (Stable) assigned Long Term Fund Based FacilityTerm Loan 3.10 [ICRA]BB- (Stable) assigned.
ICRA has assigned an [ICRA]BB- (pronounced ICRA double B minus) rating to the Rs.
3.20 crore1 cash credit facility and Rs. 3.10 crore of term loan facility ofKiz Foods Ltd
(KIZFL) . The outlook on long term rating is stable. The rating is constrained by the
companys limited track record of operations and a leveraged capital structure The rating
also takes into account the intense competition on account of fragmented nature of the
industry which exerts pressure on profitability. The rating further incorporates the
vulnerability of profitability to government regulations and raw material price movements
which are subject to seasonality and crop harvest. However, the rating positively considers
the extensive experience of promoters in the industry and locational advantage due to its
location in Mahuva providing easy access to quality raw material. Company ProfileKizFL
was incorporated in 2008 and is engaged in processing and exporting a wide variety of
processed food items viz. pickles, chutney, sauces, pastes, dehydrated onion & garlic
products, onions and mix vegetables in brine/vinegar. The associate concerns of the
22
BOARD OF DIRECTOR
MR. ZARDAR BADAMI

(Managing director &CEO)
23
MARKET SEGMENTATION OF K I Z FOOD LIMITED

Market segmentation: One of the fundamental principles of marketing is the concept of
market segmentation. Sometimes it is referred to be as one of the potentially most creative
areas of marketing. Therefore, what is it, why is it important and how has it changed in a
web enabled world? The starting point as ever is the Chartered Institute of Marketing's
definition of marketing: The management process responsible for the identification,
anticipation and satisfaction of customer needs profitably.1 While this definition lacks
certain verve, it does contain considerable food for thought. Putting it bluntly, no one
company can satisfy the needs of all of these potential customers. This is the first
justification for segmentation. The second justification is a function of supply and demand.
In a world where there is a shortage of supply, segmentation is unnecessary, as people will
take whatever they can get. Conversely, when supply exceeds demand and people have a
choice the product offer which best matches their needs will be chosen. The third
justification is plain common sense. If you can target a group of customers, your marketing
is likely to be more effective as your product offer is designed to meet the sole needs of that
group. Your product offer is no longer, a one size fits all solution.
Geographic Segmentation:
As the name suggests, this is the segmenting a geographic landmass into sub sets. The vast
majority of organizations use this type of segmentation usually without consciously
knowing that is what they are doing. The basis or validity of 60 this method is that people
with similar socio economic, cultural and lifestyle characteristics tend to congregate in the
same geographic location. Consequently, the postcode of an individual can reveal
characteristics that differentiate that person. Geographic segmentation is easy to define,
measurable and information is readily accessible. Most of the FMCG companies segment
the market on geographically based on the following:
a) Location: They divide the whole market into various countries, continents etc. One
product is marketed in one country and another for another country. E.g. in India, Unilever
along with Colgate & Palmolive offers only basic variants of their toothpastes, whereas a
24
large variety of toothpastes can be seen in American or European countries. Similarly, one
product for one continent and another product for another continent. Further, within a
country, they further divide the whole market into various regions like north, south, east and
west.
b) Density: The FMCG companies try to segment the market based on its density. They
divide the whole market into three segments rural, urban and metro.
c) Distribution channels: This is the technique of segmenting the whole market based on
its distribution system..
d) Climate: Next, they try to segment the whole market based on the specific climate. One
product for a particular climate and another type of product for another type of climate.
Demographic Segmentation
Demography is the study of populations. In demographic segmentation, a given market is
sub divided on the basis of demographic variables. This is the most widely used method by
FMCG companies for segmenting the market as it gives most widely coverage of the area
with high level of satisfaction for each segment. This is also an easy basis to understand and
use. The demographic variables include such as:
a) Age: This is the most widely used method for segmenting the market based on the age for
the respondents. So, FMCGs companies offer different products for different age groups
b) Gender: This is the technique of dividing the whole market into two groups i.e. Male and
Female. Every FMCG company tend to offer different product for both male and female.
c) Income: This is one of the most used methods of segmentation, in which, the FMCG
companies tend to segment the whole market based on income of the customers. Means,
they divide the whole market into lower income segment, middle class and upper class.
They offer various products for the various segments based on their income level.
d) Lifestyle: FMCG sometimes tend to segment the whole market based on lifestyle of the
people.
25
e) Family life cycle: Sometimes, FMCG companies tend to segment the whole market
based on life cycle of the family i.e. one single person to a parent stage.
Psychological Criteria
Psychological criteria used for segmenting consumer product and service markets include
using attitudes and perceptions (e.g. negative feelings about fast food), psychographics or
the lifestyles of customers (e.g. extrovert, fashion conscious, high achiever), and the types of
benefits sought by customers from products and brands and their consumption choices.
a) Psychographics: Psychographic approaches rely on the analysis of consumers activities,
interests, and opinions, in order to understand consumers individual lifestyles and patterns
of behavior. Psychographic segmentation includes an understanding of the values that are
important to different types of customers. A traditional form of lifestyle segmentation is
based on customer Activities, Interests, and Opinions. These provide useful insight into
what makes people tick. The consumers can be further classified into the following types
of lifestyle categories: belonger, survivor, experimentalist, conspicuous consumer, social
resistor, self explorer, and the aimless.
b) Benefits Sought: The root of this approach to market segmentation lies in the idea that
we should provide customers with exactly what they want, not based on how we design
products and services for them, but based on the benefits that they derive from the
goods/services that they use. This may sound obvious but consider what the real benefits,
both rational and irrational, are of different goods and services that people derive from
something you have bought recently.
Behavioral Criteria
Product related methods of segmenting consumer goods and service markets include using
behaviouristic methods (e.g. by product usage, purchase, and ownership) as bases for
segmentation. Observing consumers as they utilize products and media can be an important
source of new product ideas, and can lead to ideas for new product uses or product design
and development. Furthermore, new markets for existing products can be indicated, as well
as appropriate communication themes for product promotion. Purchase, ownership, and
usage of products and media are three very different behavioral constructs we can use to
26
help profile and segment consumer markets. Behavioral Segmentation attempt to group
individuals based on their actual actions:
End use what is the product to be used for?
Benefits sought.
Usage rates heavy, medium and light
Loyalty
Market Targeting Strategies: After segmenting the whole market into various segments,
next question comes is how many segments to target. The following strategies are mostly
followed by the most of the FMCG companies to target the customers:
a) Single segment concentration: The Company may select a single segment. Through
concentrated marketing, the firm gains a strong knowledge of the segments needs and
achieves a strong market presence. Furthermore, the firm enjoys operating economies
through specializing its production, distribution and promotion. Is it captures segment
leadership; the firm can earn a high return on its investment. However, concentrated
marketing strategy involves higher than normal risks. A particular market segment can turn
sour. For that, many companies prefer to operate in more than one segment.
b) Selective Specialization: Here, a firm selects a number of segments, each objectively
attractive and appropriate. There may be little or no synergy among the segments, but each
segment promises to be a moneymaker. This multi-segment coverage strategy has the
advantage of diversifying the firms risk.
c) Product Specialization: Here, the firm specializes in making a certain product that it
sells to several segments.
d) Market Specialization: Here, the firm concentrates on serving many needs of a
particular customer group.
e) Full Market Coverage: Here, a firm attempts to serve all customers with all the products
they might need. The full market coverage involves two strategies: undifferentiated
marketing and differentiated marketing.
27
HEAD OFFICE OF THE COMPANY

Registered Office
Survey No. 199
Mahuva Savarkundla Road
Nr. Murtuza Exports Industries
Village: Taveda
Taluka: Mahuva - 364290
District: Bhavnagar
Gujarat - India
Phone: +91-2844-247184
Fax: +91-2844-222735
E-mail: info@kizfoods.com
Administration Office :
L.B. Compound, Darbari Road
Bhadroad Gate
Mahuva - 364 290
Gujarat - India
Phone: +91-2844-224813
Fax: +91-2844-222735
Department Contact :
Accounts: account@kizfoods.com
Marketing: sales@kizfoods.com
Purchase: purchase@kizfoods.com
Administration: mail@kizfoods.com
Export: export@kizfoods.com
28
PLANTS OF THE COMPANY IN INDIA

KIZ Foods Ltd.
Business Name
: KIZ Foods Ltd.
Business Type
: buyer, supplier
Member Status
Address
: Survey No. 199, Mahuva Savarkundla Road, Nr. Murtuza Exports

Iindustries, Village: Taveda, Taluka, Dist. Bhavnagar, Mahuva
City
: Gujarat
Pin/Zip Codes
: 364290
State/Province
Country
: India
Key Person
: The Managing Director
Designation/Business : 0
Title
Telephone
: 02844-247184
Mobile
Weburl
: www.kizfoods.com
Product Keywords
: Food processing, grain processing, rice mills, spice processing,

packaging, machines & equipments etc.,..
Contact:
Mr. Altaf
BizzlookupSite:
www.bizzlookup.com/site/70801/
Weburl:
liyakatalibrothers.com
29
30
CHAPTER 2
HISTORY OF THE COMPANY
KIZ was incorporated in 2008 and is engaged in processing and exporting a wide variety of
processed food items viz. pickles, chutney, sauces, pastes, dehydrated onion & garlic
products, onions and mix vegetables in brine/vinegar. The associate concerns of the
K.I.Z. Food is the culmination of a connoisseurs dream of extending finest of Indian food
across the world. Through its variety of mouth watering food recipes, K.I.Z. seeks to tickle
the taste of people. It offers silver onion & vegetables in natural vinegar, acetic acid and
brine. Apart from this, K.I.Z. offers a wide gamut of Pickles, Chutneys, Sauces, ready-to-eat
Gravy, Dehydrated Onion, Spices etc.
The R & D division at K.I.Z. is at the forefront of researching and improvising recipes of
different Indian cuisines. In order to provide authentic Indian flavors and maintain highest
quality standards, purest ingredients are used in manufacturing various delicacies. The
combination of variety, quality and taste has enabled K.I.Z. to carve a niche in the food
industry, in a very short span of time.
Led by a group of ardent food aficionados, K.I.Z. is relentlessly working towards

introducing a wider and better range of products.
Infrastructure
The people at K.I.Z. understand the nuances of fine taste. This coupled with a vision to
become a leading player in the industry, propelled them to set-up a state-of-the-art
manufacturing facility. It has fully-automatic equipments and professional work-force. Food
31
being crucial to life, utmost care is taken in order to make it hygienic and safe to eat. The
facility has sophisticated machines and instruments that ensure quality, hygiene and safety
of the highest order in food products.
R&D
K.I.Z. puts tremendous emphasis on research and improvisation through ingredient
substitution, recipe reformulation etc. In order to offer new variety of products and have a
sustained competitive advantage, K.I.Z. has a high-tech R & D division. Food experts and
technicians work at the cutting edge of technology to add more to the customers platter.
Quality
Ensure delivery of accurately graded and correct quality of food.
Ensure high-quality from production to final packaging.
Continuous quality enhancement of products.

GOALS AND OBJECTIVE OF THE COMPANY
Vision
To become a leading and unbeatable food processing company in India by offering
unparalleled products.
MISSION
To achieve sustainable growth by
Customer Focus
Continuous Improvement
Employee Empowerment
Social Accountability
Network of Partners
32
OBJECTIVES OF THE COMPANY

We work to create a better future everyday.
We help people feel good, look good and get more out of life with brands and services that
are good for them and good for others.
We will inspire people to take small everyday actions that can add up to a big difference for
the world.
We will develop new ways of doing business that will allow us to double the size of our
company while reducing our environmental impact
To study various brands of Kiz in skin category.
To study the competitive brands in the market of skin category.
To find the market share of theKiz food ltd. brands and its competitive brands.
To determine the key areas of strength and weakness forKiz food ltd. brands.
33
AWARDS AND ACHIEVEMENT OF THE COMPANY
KIZ was awarded the FMCG Supply Chain Excellence Award at the 14th Express, Logistics
& Supply Chain Awards endorsed by The Economic Times along with the Business India
Group.
Super fresh factory won the Gold Award in the Process Sector, Large Business category at
The Economic Times India Manufacturing Excellence Awards 2011
KIZ Food beated delmonte & other competitors in east uttar Pradesh in term of highest sale.
2013Kiz Food became market leader in india.
Kiz FOOD: National Sales Leader in the category of miz pickle (marked Quero)
Kiz Food lucknow: TK 1 kg named the "Best-selling product of the year 2012"
Kiz :Kiz brand received the "Superbrand Award" based on brand attributes evaluated both
by professionals (Brand Council Commitee) and consumers
Kiz GUJRAT:Kiz received "Lean and Green Award" for excellence in sustainable logistics
Kiz Food: Kiz received sales team of the year 2012 in the category ginger paste
Kiz Food: Kiz wins Silver Challenge Award in the bread toppings category
Kiz Food :Kiz wins bronze "Shops Out of Home" Award for fast service
Kiz Food: Kiz received FoodAward 2012 in the categories pickle and jam
Kiz Food: Kiz received the Allerhande Award 2012 in the category tamato katchup:
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Kiz Food: Kiz wins Marketing Award in the category pickle:

Kiz Food :Kiz received Social Innovation Award 2012 for Best incorporation of Ethical
Sourcing/Certification
Kiz Food: Kiz wins Wheel of Retail 2012 for De Ruijter Specials
Kiz Food:Kiz named Costcutter Supplier of the Year

Kiz Food: Kiz named The Grocer magazines Branded Ambient Supplier of the Year (as
voted by buyers)
Kiz LKO: Kiz Beanz voted Store Cupboard Essential and Heinz Tomato Ketchup voted
Ultimate Condiment in Good Housekeeping magazines Food Awards
Kiz Food: Kiz ketchup and tomato puree named Sales Leaders of 2013
Kiz Food: Kiz receives Pearl of Polish Economy Award
Kiz Food: Kiz pickle awarded Pearl of FMCG Market 2013
Kiz Food: Kiz ketchup and tomato puree receives Quality Leader Consumer Award 2013
Kiz Food:
Kiz awarded "Transatlantic Award 2012" for innovative aseptic technology
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36
CHAPTER 3
PRODUCT AND FEATURES OF THE COMPANY
PRODUCTS OF THE COMPANY
We are leading Manufacturer & Service Provider for the Products which also includes
White (Silver Skin) Onion In Vinegar - Drum Packing & White (Silver Skin) Onion In
Vinegar - Jar Packing since 2009.
1. White (Silver Skin) Onion In Vinegar - Drum Packing
2. White (Silver Skin) Onion In Vinegar - Jar Packing
3. Pickles
4. Dehydrated Onions, Vegetable
5. Sauces & Chutneys
6. Pastes
7. Fried Onion
8. Gherkins
9. Mixed Vegetables
10. Spices
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FEATURES OF THE COMPANY

1. White (silver skin) onion in vinegar - drum packing
K.I.Z. offers the following products in Drum packing...

White (silver skin) onion preserved in natural (spirit) vinegar
White (silver skin) onion preserved in acetic acid
Grades:
Grades are based on diameter of the onion.
Typical grades are 8-15 mm, 15-20 mm, 18-21 mm, 22-25 mm, 22-35 mm, 25-40 mm, 4045 mm and also available as per customer requirement.
Processing:
The selected quality raw onions are purchased by our purchase department as per specified
grades. The procured onions are peeled manually as per our quality requirement and after
that the same onions are sorted and washed through chlorinated water. The washed onions
are put in the barrels filled with acetic acid/natural vinegar solution for 8-15 days under
process. After completion of the primary stage of preservation the same barrels are sorted
for the final time. Grading is done through automatic grader and packed into the barrels with
same liquid medium as per customer requirements.
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2. White (Silver Skin) Onion In Vinegar - Jar Packing
We also produce Vinegar onion in different sizes of onion, packed in glass jar and in below
mentioned variety.
Spiced Sweet Onion
Onion in Natural Vinegar
Onion in Brine
We can also produce this product as per customer specification from 200 gm to 2 kg glass
bottle and also in 5 kg pet jar.
K.I.Z bottles the products as per customer requirements in 100% hygienic condition by
advance packaging technology and adhering to HACCP guidelines.
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3. Pickles
Tantalize your taste buds with mouth-watering pickles. Prepared from finest ingredients and
combination from regional recipes, K.I.Z. offers variety of spicy, sweet and tangy
pickles.K.I.Z. pickles are a gourmet's delight.
Pickles in Brine:
Garlic in Brine, Lemons in Brine, Chilli in Brine etc.
Spicy Hot Pickles:
Mango Pickle, Mixed Pickle, Garlic Pickle, Gunda Pickle, Kerda Pickle, Khaman Gunda
Pickle, Chana Methi Pickle, Chilli Pickle, Carrot Pickle, Ginger Pickle, Lime Pickle, Mango
Lime Pickle, Mango Pickle (Punjabi), Mixed Pickle (Punjabi), Red Chilli Pickle etc.
Sweet Pickles:
Mango Pickle, Lime Pickle, Dry Date Pickle etc.
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4. Dehydrated Onions, Vegetable
Dehydrated products are manufactured from fresh vegetables, purchased from the finest
agricultural farms. All vegetables are dehydrated by fully automatic processes and
maintained under HACCP guidelines during the processing.
Dehydrated products:
White Onion Slice/Flakes/Powder
White Onion Minced/Chopped/Granulated
Red Onion Slice/Flakes/Powder
Red Onion Minced/Chopped/Granulated
Other Vegetables
In addition to dehydrated products, we have set-up facility for producing fried onion and
garlic.
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5. Sauces & Chutneys
Sauces
Relish lip smacking sauces over variety of dishes. K.I.Z. has researched and developed an
array of exotic sauces to choose from.
Chutneys
K.I.Z. has the finest range of exotic and scrumptious chutneys to offer. This side-dish lends
a mouth-watering touch to any delicacy. With K.I.Z. chutney, your delight is guaranteed.
Basic Sauces:
Red Chilli Sauce, Green Chilli Sauce, Soya Sauce, Tomato Sauce, Hot Sauce, Mustard
Sauce etc.
Cooking Sauce:
Rogan Josh Cooking Sauce, Korma Cooking Sauce, Tikka Cooking Sauce etc.
Chutneys:
Date Chutney, Tamarind Chutney, Bhel Chutney, Garlic Chutney, Sandwitch Chutney,
Mango Chutney (Hot), Mango Chutney (Sweet), Gujarati Chutney etc.
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6. Pastes
Paste is one of the most important ingredients and a taste-maker for numerous food recipes.
The aroma and combination of ingredients lend striking appeal, taste and often provides
colour to a food preparation. Keeping in mind the essence of paste to a recipe, K.I.Z.
ensures the finest ingredients are used in preparing pastes.
Cooking Paste:
Ginger Paste, Garlic Paste, Ginger Garlic Paste, Red Chilli Paste, Green Chilli Paste,
Tamarind Paste, Onions Paste etc.
Curried Paste
Tikka Curry Paste, Korma Curry Paste, Rogan Josh Paste, Mutton Curry Paste, Chicken
Curry Paste, Tandoori Paste, Green Masala Paste etc.
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7. Fried Onion
K.I.Z. fried onion and garlic can be used for cooking and garnishing on fish, kebabs,
biryani, pulav, soups, baked pastas, salad dressing, chats and many more.
Fried Items (Plain / Coated):
Onion Flakes (Fresh)
Onion Minced (Fresh)
Garlic Flakes (Fresh)
Onion Flakes (Dehydrated)
Onion Minced (Dehydrated)
Garlic Flakes (Dehydrated)
Apart from this, K.I.Z. also caters special fried onions coated with various spices of
different recipes to the hospitality industry for add-ons in gravy and special dishes.
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8. Gherkins
Gherkins
Delectable gherkins from K.I.Z.'s gamut will surely tickle your taste buds. We have grown
high quality Gherkins in Gujarat State (India) under the observation of technical staff.
The product is available from 5/10 to 300+ count/Kg and can also be graded by diameter
and/or length.
Fresh Gherkins are preserved in salted vinegar, acetic acid or fermented and preserved in
brine.
The product can also be processed to customized specifications and standards.
The product is available in both bulk and consumer pack.
Bulk Pack:
The product is packed in new food grade HDPE drums. The net drained weight for salted
vinegar/acid product is 160 kgs per drum and for brine products it is 180 kgs per drum. 80
drums are placed in a 20' container.
Consumer Pack: Spiced Gherkins are available in different size glass bottles with capacity
ranging from 400 gms to 2 kgs or even as per customers requirement.
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9. Mixed Vegetables
We also produce and pack different types of vegetables in glass jar as well as in HDPE
Drums of 240 liters capacity or customized packing. Below mentioned products are
available in different types of Glass Jars or Pet Jars.
Mix Vegetables
Marinated Carrot Sticks
Green Chilly in Brine or Vinegar
K.I.Z. also offers other types of vegetables in Brine or Vinegar as per customer
requirements
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10. Spices
Dehydrated products are manufactured from fresh Spices, purchased from the finest
agricultural farms. All Spices are dehydrated by fully automatic processes and maintained
under HACCP guidelines during the processing.
Dehydrated products:
Garlic Flakes and Powder
Garlic Flakes and Powder
Green Coriander
Green Mint
In addition to dehydrated products, we have set-up facility for producing fried onion and
garlic.
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48
CHAPTER 4
SALES PROMOTION STRATEGY OF THE COMPANY
The importance of consumer sales promotion in the marketing mix of the fast moving
consumer goods (FMCG) category throughout the world has increased. Companies spend
considerable time in planning such activities. However, in order to enhance the effectiveness
of these activities, manufacturers should understand consumer and retailer interpretations of
their promotional activities. The study here pertains to consumers perceptions regarding
sales promotion. Some past researches have suggested that promotion itself has an effect on
the perceived value of the brand. This is because promotions provide utilitarian benefits
such as monetary savings, added value, increased quality and convenience as well as
hedonic benefits such as entertainment, exploration and self-expression.
Broadly speaking most of the companies using Marketing Mix which includes
Price
Place (Channel of Distribution)
Product
Promotion
These are the four basic pillar of marketing mix. Most of the marketing strategies are built
on the basis of these criteria.
Promotion is one of the important elements of marketing mix. There are so many elements
of promotion such as
Advertising
Direct Marketing
Public Relations
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Sales Promotion
Traditionally, sales Promotions have been used by marketer to increase sales in the short
term. However, in the last few decades this communication tool has evolved and now is
considered from a strategic point of view. For this reason, it is necessary to realize new
studies in this area and study how consumers evaluate sales promotions.
Sales promotions have grown in both importance and frequency over the past few decades.
Although an accurate estimate for total sales promotions expenditures does not exist, we can
be sure that the trend is up.
Sales promotion serves three essential roles: It informs, persuades and reminds prospective
customers about a company and its products. Even the most useful product or brand will be
a failure if no one knows that it is available. As we know, channels of distribution take more
time in creating awareness because a product has to pass through many hands between a
producer and consumers.
Therefore, a producer has to inform channel members as well as ultimate consumers about
the attributes and availability of his products. The second purpose of promotion is
persuasion. The cut throat competition among different products puts tremendous pressure
on their manufacturers and they are compelled to undertake sales promotion activities. The
third purpose of promotion is reminding consumers about products availability and its
potential to satisfy their needs.
From these elements Sales Promotion is the element which is in the focus of this project.
Further Sales Promotion is quite broad term it includes
Consumer Oriented Sales Promotion
Trade Oriented Sales Promotion
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Consumer Oriented Sales Promotion

Consumer Oriented Sales Promotion is the main topic of this project. Here emphasize is
given to motivate consumer to increase sales. Consumer Oriented Sales Promotion includes
Sampling, Couponing, Premiums, Contest, Refunds, Rebates, Bonus Packs, Price-off,
Event marketing etc.
Definition:
For the purpose of this study, following definitions of sales promotion were kept in mind.
Kotler defines sales promotion as: Sales promotion consists of a diverse collection of
incentive tools, mostly short-term designed to stimulate quicker and/or greater purchase of
particular products/services by consumers or the trade.
Roger Strang has given a more simplistic definition i.e. sales promotions are short-term
incentives to encourage purchase or sales of a product or service.
Hence, any forms of incentives (price cut or value added nature) offered for short period
either to trade or consumers are considered as sales promotion activities.
Marketers uses consumer oriented sales promotion tools for the following reasons:
To increase short term sales
To induce trial
To reduce inventory
To establish a brand name
To make cross selling
To cope up with competition
To avoid advertising clutter
Tools of Consumer Oriented Sales Promotion:

There are so many tools or technique available to the marketers for achieving objective of
sales promotion. These tools should be used considering all other factors affecting such as
cost, time, competitors, availability of goods etc. These tools are as under
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1. Coupons
2. Price-Off
3. Freebies
4. Scratch Cards
5. Lucky Draws
6. Bundling Offer
7. Extra Quantity
Lets have look at each tool
1. Coupons:
Coupon is the oldest and most widely used way of sales promotion. Coupons have been
used since 1895. It is mostly used by packaged goods. It is worthwhile to use coupon as a
promotion tool because data shows that market for packaged goods increased from 16
billion in 1968 to 310 billion in 1994. To boost up the sales not only manufacturer but
retailers personally can also used. A coupon leads to price reductions so as to encourage
price sensitive customers. Non users can try a product which may leads to regular sales.
2. Price-off:
A price-off is simply a reduction in the price of the product to increase sales and is very
often used when introduction a new product. A reduction in price always increases sales but
the use of this technique should be carefully considered in the current market situation.
Price-off is the most preferred sales promotion technique because consumers response very
positively to this scheme. Not only that but it also cause large increase in sales volume.
Price-off reductions are typically offered tight on the package through specially marked
price packs. E.g. Krack Jack offers 30% Price-off.
3. Freebies
Freebies are a popular form of modern marketing and are some of the best things about the
internet. The definition of freebies is products or services given away for free at no cost to
the consumer. Well thats the definition we came up with. I am a bargain freebie shopper,
pretty much going for any free product and informing everyone about it.
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At different times, big and small companies often give away prizes and money which is too
good to be true. Often its in the pursuit of more customers or a larger fan base and it often
works.
4. Scratch Cards
A scratch card (also called a scratch off, scratch ticket, scratcher, scratchie, scratch-it,
scratch game, scratch-and-win or instant game) is a small token, usually made of cardboard,
where one or more areas contain concealed information: they are covered by a substance
that cannot be seen through, but can be scratched off.
5. Bundling Offers
Product bundling is a marketing strategy that involves offering several products for sale as
one combined product. This strategy is very common in the software business (for example:
bundle a word processor, a spreadsheet, and a database into a single office suite), in
the cable television industry (for example, basic cable in the United States generally offers
many channels at one price), and in the fast food industry in which multiple items are
combined into a complete meal. A bundle of products is sometimes referred to as a package
deal or a compilation or an anthology.
Factors Influencing Consumer Oriented Sales Promotion:
Mainly four factors should be taken into account while determining the sales promotion
program.
> Target market
> Nature of product
> Stage of product life cycle
> Budget available for promotion
1. Target Market:
While doing sales promotion, marketer must know who their target market is; otherwise
there is no use of all effort because it leads to no where. A target market can be in any of the
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stages of buying hierarchy i.e. awareness, knowledge, liking, preferences, conviction and
purchase. Each stage defines a possible goal of promotion.
2. Nature of the product:
There are various product attributes which influence sales promotional strategy. When the
unit price is low the manufacturer as well as the customer has low risk but he can get the
benefit of mass marketing. Therefore, mass marketing requires mass sales promotion
schemes. Sales promotion scheme differ for products like its durability, perishable goods
etc.
3. Stage of product Life Cycle:
Sales promotion strategies are influenced by the life cycle of a product. When a new product
introduced, prospective buyers must be informed about its existence and its benefits and
middlemen must be convinced to stock it. Later, if a product becomes successful,
competition intensifies and more emphasis is placed on sales promotion to increase its sales.
4. Budget Available for Promotion:
The funds available for promotion are the ultimate determinant of the promotional program.
A business with ample funds can make more effective use of sales promotion program than
a firm with limited financial resources. The budget for sales promotion can be prepared by
the following methods
Percentage of Sales
Fixed funds available for sales promotion
Following the competition, and
Budgeting by objective.
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Sales Promotion from the Consumers point of vie

Willingness to buy on sales promotion offer
Sixty per cent of the sample did not show willingness to buy a brand due to
promotion while 30% showed willingness and 10% were not sure. This indicates that when
30% showed willingness and 10% consumers who were not sure, these groups might be
lured through innovative and lucrative sales promotion offer.
Ability to induce trial
Forty per cent of the respondents had said that sales promotion had the ability to
induce trial which reinforces the above inference.
Long-term impact
In order to understand ability of the promotions to increase long-term sales,
respondents were asked about continuity of purchase of a brand after the withdrawal of
promotion. Eighty per cent of the respondents indicated that they would not continue. But
20% said they would. Thus, it could be inferred that promotions in this category (low
involvement products) might encourage trial and brand switching but not long term loyalty.
Preference of Schemes:
Price off was the most preferred type of scheme. Maximum customers ranked priceoffs as number one or two.
Perceived Quality:
Majority of respondents had a perception that the quality of the promoted brands
remained the same during promotion, while some of them felt that it was inferior than
before. It can be inferred that promotions were not leading to negative brand quality
perceptions. It is found that some customer strongly preferred to buy their regular brand and
said that sales promotion would not weaken their loyalty towards the brand.
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Perceptions regarding underlying company motivations
On tapping perceptions regarding underlying company motivations for sales promotion, to

increase sales was ranked highest followed by to attract switchers and to sell excess
stocks. While providing value to customers and
To reinforce company image were ranked lowest. This indicates that consumers believed
that companies were undertaking such activities only for their own benefit and not for the
benefit of consumers.
Findings from retailer and consumer perception studies, it is evident that there was a
matching of perceptions regarding nature of scheme (price offs as most preferred type of
scheme mentioned by consumers and retailers perceptions about consumer preferences).
Since retailers observe consumers in store behavior were frequently and directly, their
perceptions regarding providing consumer behavior are likely to be accurate. Such inputs
from the retailers would be useful to companies.
The retailers had the perception that those schemes which were announced through mass
media had better response. This was reinforced by the consumer survey which showed that
recall in case of heavily promoted schemes on TV was found to be very high.
Retailers prediction of companies motivation for offering sales promotion were matching
with the consumer perception regarding the same. Thus both viewed that companies were
using sales promotion activities mainly to increase short term sales or encourage switching
or selling excess stock and not really to give value benefit or enhance/reinforce
brand/company image.
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Trade Oriented Sales Promotion

Trade Oriented Sales Promotion aimed to motivate channel members of the company and to
encourage them to push companys product. Trade Oriented Sales Promotion includes
dealer contest and incentives, trade allowances. Point-of-purchase displays, sales training
programs, trade shows, cooperative advertising, and other programs designed to motivate
distributors and retailers to carry a product and make an extra effort to push it to their
customers
Sales promotion from the retailers point of view:
Perceptions on Scheme Preference
It was found that retailer perceived price offs as a better form of sales promotion activity.
Price offs in their opinion had relatively a greater impact compared to any other form of
sales promotion activity like Bonus packs, Premium, Contests etc. Retailers preferred price
offs the most, then bonus pack, premium, contests, in order of importance.
Perceptions about Buying Roles
Retailers viewed that the person who came to the shop (who may be a maid, son, daughter,
daughter-in-law and child) was the decider of a toilet soap brand and not the Income
provider (e.g. head of the family). It could be inferred that visibility of information about the
sales promotion activity at the point of purchase could result into the purchase of a
promoted brand.
Perceptions about their role in decision-making
Retailer had relatively very low influence in affecting choice. It could be inferred that
visibility and awareness about the scheme were the critical success factors so that pull could
be created.
Perceptions about Response to Sales Promotion Offers
They believed that younger age-groups were more experimental in nature, amenable to
trying new brands, and sought/looked for or asked whether there were any) sales promotion
schemes running on any toilet soap at the time of purchase.
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Perceptions about Communications of Sales Promotion Schemes

Retailers perceived that role of word of mouth and television advertising played an
important part in providing information inputs to consumers regarding sales promotion
activities.
Variations in Information Flow
Smaller (non-supermarket, small format store) retailers received relatively less support
compared to supermarkets in terms of servicing, margins, information about sales promotion
activities from the dealers. Many a times small retailers were only informed verbally about
sales promotion schemes by the dealer salesmen during the scheduled weekly visits.
Dealer-Retailer Dynamics
At the time of sales promotion activities, dealers had tendency to push unwanted stocks onto
the smaller retailers. In fact these retailers preferred to stock variety of brands and wanted
payment for shelf and window display to increase traffic into their store. However,
supermarkets and big retailers were pampered and given special services and given better
margins and better allowances.
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Margins
It was found that in sales promotion schemes margins varied from 6 to15% depending of the
size of the retail outlet, bargaining power of a retailer, quantity ordered by him etc. Mostly
margins were linked to size of the volumes that were ordered.
Perceptions about terms and conditions
Retailers were not found to be happy with sales promotion schemes where their margins
were cut on the pretext of just fast movement of inventory of the brand being promoted.
Also if additional incentive was offered it was subject to minimum performance
requirement.
Nature of POP
Retailers indicated that most of the POP (Point of Purchase) materials were meant for brand
advertisement and not for giving information regarding the schemes. Thus it could be
inferred that companys follow up was not adequate.
Servicing during duration of Scheme
In stock-out situation during the running of the sales promotion schemes, smaller retailers
had to wait for replenishment of stocks till the next scheduled weekly visit by the dealer
salesman but big retailers were serviced on telephonic request for replenishment of stocks.
This clearly indicated the disparity in treatment.
Problem of left-over
A leftover stock at the end of any scheme was required to be sold by the retailers before they
ordered fresh stocks. In case of bonus packs scheme, leftover stock was often dismantled
(cut open buy one get one free) and sold them individually as a regular soap. This approach
of the company leads to misappropriation which in turn could result in adverse brand image.
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Gifts for Retailer motivation

Companies at times were rewarding retailers by giving free gifts like thermos flasks or
clocks if they sold more than certain quantity in a given period. Companies were making a
half-hearted effort to motivate retailers.
Perceptions about mass media announcements
Retailers viewed that whenever sales promotion scheme was announced on TV, it created
pull and they were more than willing to stock such brands. For example Medimix and Dettol
contest was not advertised on TV, hence there was very little awareness leading to unsold
stock till 6 months. While Lux Gold Star which was heavily promoted on T.V. is recalled
even today.
Post Promotion Behavior
Retailers observed that in most cases sales promotion scheme on a brand might encourage a
buyer to switch a brand temporarily but he would revert back to original brand after
promotion.
Handling Problems
Many a times retailers had to handle various sales promotion offers simultaneously in a
category and also across categories and there was no formal communication planning either
from the dealer or the company. Remembering each offer and handling was a problem
especially for a small retailer which was often an as one-man show.
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SALES PROMOTION STRATEGY
Sales are the lifeblood of a business, without sales there would be no business in the first
place; therefore it is very important that if a business wants to succeed, it should have a sales
promotion strategy in mind. The primary objective of a sales promotion is to improve a
companys sales by predicting and modifying your target customers purchasing behavior
and patterns.
Sales promotion is very important as it not only helps to boost sales but it also helps a
business to draw new customers while at the same time retaining older ones. There are a
variety of sales promotional strategies that a business can use to increase their sales,
however it is important that we first understand what a sales promotion strategy actually is
and why it is so important.
A sales promotion strategy is an activity that is designed to help boost the sales of a product
or service. This can be done through an advertising campaign, public relation activities, a
free sampling campaign, a free gift campaign, a trading stamps campaign, through
demonstrations and exhibitions, through prize giving competitions, through temporary price
cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails.
The importance of a sales promotion strategy cannot be underestimated. This is because a
sales promotion strategy is important to a business boosting its sales.
When developing a sales promotion strategy for your business, it is important that you keep
the following points in mind.
Consumer attitudes and buying patterns
Your brand strategy
Your competitive strategy
Your advertising strategy
Other external factors that can influence products availability and pricing.
There are three types of sales promotion strategies:
A push strategy
A pull strategy or
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A combination of the two

A Push Strategy:
A push sales promotion strategy involves pushing distributors and retailers to sell your
products and services to the consumer by offering various kinds of promotions and personal
selling efforts. What happens here is that a company promotes their product/services to a
reseller who in turn promotes it to another reseller or to the consumer. The basic objective
of this strategy is to persuade retailers, wholesalers and distributors to carry your brand, give
it shelf space, promote it by advertising, and ultimately push it forward to the consumer.
Typical push sales promotion strategies include; buy-back guarantees, free trials, contests,
discounts, and specialty advertising items.
A Pull Strategy:
A pull sales promotion strategy focuses more on the consumer instead of the reseller or
distributor. This strategy involves getting the consumer to pull or purchase the
product/services directly from the company itself. This strategy targets its marketing efforts
directly on the consumers with the hope that it will stimulate interest and demand for the
product. This pull strategy is often used when distributors are reluctant to carry or distribute
a product. Typical pull sales promotion strategies include; samples, coupons, cash refunds
or rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-ofpurchase displays.
A Combination of Two Strategies:
A combination sales promotion strategy is just that; it is a combination of a push and a pull
strategy. It focuses both on the distributor as well as the consumers, targeting both parties
directly. It offers consumer incentives side by side with dealer discounts.
The Short term Impact of Promotions:
Lets have look at the impact of promotions on purchase behavior during the promotional
period i.e. the week or the month when the promotion was being run. The majority of the
empirical studies have focused on the impact of promotions in the short term. The key
findings across the studies are discussed below.
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Temporary price reductions (price off) substantially increase sales:

There is ample evidence to show that promotions lead to dramatic increases in sales of
promoted brand in the short term. Studies have consistently reported high sales effects and
high price elasticity of brands which are on promotion. The economic rationale for the
promotional response is clear temporary price cuts increase the value of the product to the
consumer and it leads to immediate action. Sales boost can be quantified on the basis of
brand switching, primary demand expansion and consumer stockpiling during a promotion.
Sales Promotion leads to brand substitution with the product category:
The sales bump during the promotional period into sales due to brand switching, purchase
time acceleration and stockpiling. Studies on brand switching have shown that brand
switching effects within a category are asymmetric such that promotions on higher quality
brands impacts weaker brands disproportionately. During a promotion, higher quality brands
induce a large number of consumers to switch to them as compared to lower quality brands.
One explanation advanced for this finding by researchers is that large share brands have
higher brand equity and attract switchers more than low share brands.
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Sales Promotion leads to purchase acceleration/stockpiling effects:

In response to a promotion, consumers may buy more quantity of the product category or
buy at an earlier time than usual (purchase acceleration effect). If consumers buy extra
quantity during a promotion or earlier than normal, then they are not in the market to buy
products once the promotion is over. Thus purchase acceleration is demonstrated through a
lengthening of inter purchase times after a promotion. Purchase acceleration was more
likely to be exhibited in increased purchase quantity than in shortened inter purchase times.
Results showed that consumers mostly made up for the large quantity purchased by waiting
longer until purchasing again. Results indicated that heavy users tended to accelerate
purchases more than light users. There was negligible difference in the acceleration
propensities of high versus low income groups.
Sales Promotion leads to primary demand expansion for a category:
While it was traditionally assumed that consumption rates remain fixed during and after a
promotion, but from this project I came to know that promotions also have a primary
demand expansion effect. When a primary demand expansion occurs, promotion induced
increase in purchase quantities does not significantly extend the time till the next purchase
in the category occurs, thus indicating that there has been an increase in consumption
promotions induced consumers to buy more and consume faster. It is found that promotion
induced inventory temporarily increased consumption rates within the category e.g. in
categories such as bacon, salted snacks, soft drinks and yogurt exhibited primary demand
expansions as a result of promotion while bathroom tissue, coffee, detergent and paper
towels exhibited stockpiling only.
Sales Promotions affect sales in complementary and competitive categories:
From this project it is found that promotion not only increases sales of main product but it
also lead to increase in sales of complementary categories. Found strong cross relationships
between products of the promoted product category indicating brand substitution behavior.
They stated that retail price promotions work as a form of implicit price bundling whereby
the consumer surplus is transferred from the promoted item to non promoted items.
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The Long term Impact of Promotions:

Strategies are builds to reap the benefits for longer period of time; same is true in sales
promotion strategies. Let us see impact of promotions effort and study the impact over a
longer time period e.g. 4-6 months or even a few years after a sales promotion campaign.
The result showed that consumer promotions for leading brands of established packaged
products had no after-effects on the brands sales or repeat buying loyalty. The extra sales of
a brand while promoted came virtually all from the brands existing long-term customer
base for which the experience of buying the promoted brand was nothing new.
It is found that although the short term effects of promotions are strong; these promotions
rarely exhibit long term effects. It is observed that each sales component generally lacked a
permanent effect and the effect of promotion was short lived and increase in promotions
affected consumers stockpiling decisions in the long run. They found that the combined
short and long-term elasticity of promotions was zero. The stockpiling induced by a
promotion was essentially offset by reduced demand in the long term. Thus increased sales
were more a result of sales borrowed from the future than increased consumption
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CHAPTER 5
MARKETING STRATEGY OF KIZ FOOD LIMITED
KIZ FOOD LIMITED started an earnest exercise by creating a new brand image and
corporate philosophy by investing in new business categories like food, pickle, . All along
using its famed distribution strengths built through its successful past businesses like tamato
catch-up, pickle, business, to create synergies across its verticals and help prop up its new
businesses, like foods.Kiz has a well thought-out strategic approach. Rather than acquiring
weaker brands to get into these new segments inorganically, it created a range of new food
and branded brands.
The first step in this well-planned strategy was the launch ofKiz jam, the premium branded
apparel business in 2008.
KIZ then moved on to take the competition head on in the FMCG domain, throughKiz
Foods in August 2007, and FOOD business, which is the focal point of this story, in 2005. It
has created good impact with its well etched-out FOOD Brands. Under this category,
brands like
Dehydrated onion, sauce were manufactured to take care of various sets of consumer
segments.
But behind this launch was five years of intensive on ground research of market conditions
and consumer expectations. Over one lakh consumers were surveyed across the country to
test various prototypes. Acceptance benchmark was kept as high as 90 percent for the final
products.Kiz called this exercise as '3E approach explore, establish and execute. As an
adage goes 'if you have to win a race, you have to clearly target the No 1',Kiz too aimed
the No 1 which happened to be the formidable HUL (which still reigns over 50 percent of
the FMCG market). AndKiz s target was HUL and P&G only. ITC roped in its pastes and
spices business veteran Sandeep Kaul to spearhead the launch; it also sought help from
product formulation and branding experts in Europe and America to formulate the fragrance,
aesthetics and packaging. Many of the brands have also been developed at its R&D centre.
The results are there for everyone to see. In less than four years,Kiz has been able to create
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brand awareness and consumer acceptance for its five product lines tomato catch-up and
the chutneyeach targeted at the needs, aspirations and usage behaviour of different
consumer segments. Kaul informs that the strategy for food segment is that everyone is a
potential consumer.
Distribution system atKiz Food Limited
The process of passing down each passing the product down the chain to the next
organization through Chain of intermediaries, before it finally reaches the consumer or enduser is known as the 'distribution chain' or the 'channel.'
A number of alternate 'channels' of distribution may be available:
Distributor, who sells to retailers,
Dealer Or wholesaler, who sells to end customers
Advertisement typically used for consumption goods
KIZ follows:
CHANNEL WISE DISTRIBUTION
Here the total product is divided into different channels like, Health
care product, Personal care products, Home products & etc.
BEAT WISE DISTRIBUTION
Here total market is divided into different areas where the products are served to all the
outlets exist in that area.
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69
CHAPTER -6
COMPETITORS OF THE COMPANY
1. TOPS
2. NILONS
3. HEINZ
4. ANNAPURNA GROUP LIMITED
5.
HUL
6. PATIDAR AGRO & FOOD PRODUCTS

7. KILBAN FOODS (INDIA) PVT.LTD
70
PRODUCT OF THE COMPETITORS .
TOPS
G. D. Foods Manufacturing (India) Pvt. Ltd. G. D. Foods Manufacturing (India) Pvt. Ltd.
produces and supplies processed food items. It supplies pickles, ketchups, custards, soya
sauce, jellies, milk mixes, and biscuits and cookies under the Tops brand name.
G.D Foods Mfg. (I) Pvt. Ltd. is committed to delivering to its customers as increasing range
of safe product the finest possible quality uncompromising and unrelenting in the
implementation of quality management system. Our chilli sauce, chillies are sourced from
the best chilli growing areas in India.
The company is justifiably proud of its research and development team, which always starts
with consumers preferences and then develops the products ensuring that the right
ingredients and the right process of Manufacturing are used for making each product
authentic.
Quality:
Quality has been the watchword at Tops since inception. The guiding philosophy of the
founders has always been not to sell anything they are not willing to eat themselves.
Quality Assurance in all spheres of activity is based on this philosophy. Thus the best
available Pre-cleaned raw material are sourced and double cleaned at the factory prior to
71
manufacture, physical, chemical and microbiological testing is carried out for all raw
material as well as finished products. All employees undergo periodic health check right up
to the management level.
Production:
Our production line has been designed to give us a unique degree of flexibility. It is this
flexibility that enables us to enter to both the retail market as well as our institutional
customer who want their individual tastes upon the market and thereby establish their
separate identifies.
Apart from the ability to manufacture products in different qualities, we also manufacture a
very wide range of products or rather many very different kinds Mixed, Pine Apple, Mango,
Strawberry Jams and Sauces, Ketchup, Instant Mix, Custard Power, Crystal Jellies. This
capability makes it possible on shelves across India.
72
PRODUCTS OF TOPS
1. Jams
The Tops Magic Moments bouquet of goodies is the outcome of our ceaseless efforts, to
appeal to the classic taste lines of food connoisseurs the world over.
Fruit Packed Delights
Jam on toast. Jam on a muffin. Jam on a pancake. Jam on a bun. Jam in a shake. Jam on a
slice of walnut cake or jam in a swirl of creamy ice cream. Tops Fruit Jams make each
occasion a dream.
Made from the finest of hand-picked and selected fruit. And jammed and bottled in keeping
with the highest international standards, on state-of-the-art process lines that are constantly
monitored for quality.
Apple
Mango
Mix Fruit
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Orange Marmalade
Pineapple
Strawberry
Apple
Nutritional Facts & Figures

Nutrition Facts
Per Serve
Calorific Value
288.42 Kcal
Per 100g (approx.)
% Daily Value
Carbohydrates
72.0 g
23.99 %
Protein (NX6.25)
Nil
Total Fat
Nil
Vitamin C
0.9 mg
1.49 %
Sodium
2.5 mg
0.25 %
Nutritional values based on NIN Standards & percent daily values are based on a 2,000
calorie diet. Your daily value may be higher or lower depending on your calorie needs.
74
Mango
appeal to the classic tastelines of food connoisseurs the world over.
Nutrition Facts
Per Serve
Calorific Value
296.42 Kcal
Per 100g
% Daily
(approx.)
Value
Carbohydrates
74.0 g
24.66 %
Protein (NX6.25)
0.1 g
0.2 %
Total Fat
Vitamin C
0.51 mg
0.84 %
Sodium
3.2 mg
0.32 %
75
Mix Fruit
Nutrition Facts
Per Serve
Calorific Value
296.42 Kcal
Per 100g
% Daily
(approx.)
Value
Carbohydrates
74.0 g
24.66 %
Protein (NX6.25)
0.1 g
0.2 %
Total Fat
Vitamin C
0.51 mg
0.84 %
Sodium
3.2 mg
0.32 %
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Orange Marmalade
Nutrition Facts
Per Serve
Calorific Value
321 Kcal
Per 100g
% Daily
(approx.)
Value
Carbohydrates
80.0 g
26.6 %
Protein (NX6.25)
0.24 g
0.48 %
Total Fat
Nil
Vitamin C
0.15 mg
0.24 %
77
Pineapple
Nutrition Facts
Per Serve
Calorific Value
284 Kcal
Per 100g
% Daily
(approx.)
Value
Carbohydrates
71.0 g
23.66 %
Protein (NX6.25)
0.1 g
0.2 %
Total Fat
Nil
Vitamin C
0.38 mg
0.63 %
Sodium
4.5 mg
0.45 %
78
Strawberry
Nutrition Facts
Per Serve
Calorific Value
308.42 Kcal
Per 100g
% Daily
(approx.)
Value
Carbohydrates
77.0 g
25.6 %
Protein (NX6.25)
0.1 g
0.2 %
Total Fat
Nil
Vitamin C
0.43 mg
0.7 %
Sodium
4.5 mg
0.45 %
calorie diet. Your daily value may be higher or lower depending on your calorie needs
79
2. Tomato Ketchup
Classical Ketchup. Made the Old Fashioned Way
Hot dogs, burgers, French-fries or omelets. Cutlets, patties, steaks or roasts. Pizzas, pastas,
noodles or soups. Or sizzlers of any description.
You name it. Tops Tomato Ketchup makes its taste absolutely tops.
And no wonder. Made in the old-fashioned way, from the ripest and finest red tomatoes, and
blended with selected aromatic spices and condiments, Tops Tomato Ketchup flaunts the
classic all-American taste that is favored around the world.
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Make every bite exciting. Make every moment magical. Surrender to the joy only Tops
Tomato Ketchup can bring.
Regular

Nutrition Facts
Per Serve
Calorific Value
139.04 Kcal
Per 100g
% Daily
(approx.)
Value
Carbohydrates
32.66 g
10.8 %
Protein (NX6.25)
2.0 g
4.0 %
Vitamin C
3.5 mg
5.9 %
Sodium
1113 mg
45 %
Lycopene
11.3 mg
* Available in 500 Gms, 200 Gms & 1Kg
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3. PICKLES
21 Delightful Flavours
Tops presents piquant pickles to perk up your life. Made the traditional way, with selected
fruit and vegetables and authentic Indian spices. Preserved in hygienically pressed oils. And
matured in sum-warmed vats for exactly the right length of time.
Tops pickles add twang to every meal, snack or occasion. Whatever the flavour you savour sweet or tangy, there's an offering from the Tops range just for you.
Explore. Experience. Enjoy. There's a whole new world of pickles for you to choose from.
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Garlic
Nutrition Facts
Per Serve
Calorific Value
139.0 Kcal
Calories From Fat
66.6 Kcal
Per 100g
% Daily
(approx.)
Value
Total Fat
7.40 g
11.38 %
Saturated Fat
0.74 g
3.70 %
Cholesterol
Nil
2.27 g
3.92 g
Trans Fatty Acid
Nil
Protein (NX6.25)
2.6 g
5.20 %
Carbohydrates
15.33 g
5.10 %
Sodium
10362 mg
431.70 %
Polyunsaturated Fatty
Acid
Monounsaturated Fatty
Acid
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Ginger
Nutrition Facts
Per Serve
Calorific Value
115.5 Kcal
Calories From Fat
63 Kcal
Per 100g
% Daily
(approx.)
Value
Total Fat
7.0 g
10.00 %
Saturated Fat
0.74 g
3.70 %
Cholesterol
Nil
2.27 g
3.92 g
Nil
Acid
Acid
Trans Fatty Acid
84
Protein (NX6.25)
2.5 g
4.00 %
Carbohydrates
10.5 g
3.50 %
Sodium
6061 mg
253 %
Vitamin A
39.84 ug
1.32 %
Vitamin C
1.33 mg
11.00 %
Green Chilli
Nutrition Facts
Per Serve
Calorific Value
109.2 Kcal
Calories From Fat
63 Kcal
Per 100g
% Daily
85
(approx.)
Value
Total Fat
7.0 g
10.00 %
Saturated Fat
0.74 g
3.70 %
Cholesterol
Nil
2.27 g
3.92 g
Trans Fatty Acid
Nil
Protein (NX6.25)
4.0 g
8.00 %
Carbohydrates
7.3 g
2.40 %
Vitamin C
1.33 mg
2.21 %
Sodium
5850 mg
243.75 %
Acid
Acid
Khatta Meetha
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Nutrition Facts
Per Serve
Calorific Value
217.4 Kcal
Calories From Fat
63 Kcal
Per 100g
% Daily
(approx.)
Value
Total Fat
7.0 g
10.00 %
Saturated Fat
0.74 g
3.70 %
Cholesterol
Nil
2.27 g
3.92 g
Trans Fatty Acid
Nil
Protein (NX6.25)
2.0 g
4.00 %
Carbohydrates
36.6 g
26.93 %
Vitamin C
1.33 mg
2.20 %
Sodium
4444 mg
186.16 %
Acid
Acid
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Mango
Nutrition Facts
Per Serve
Calorific Value
149.0 Kcal
Calories From Fat
63 Kcal
Per 100g
% Daily
(approx.)
Value
Total Fat
7.0 g
10.00 %
Saturated Fat
0.74 g
3.70 %
Cholesterol
Nil
2.27 g
3.92 g
Trans Fatty Acid
Nil
Protein (NX6.25)
1.4 g
2.80 %
Carbohydrates
20.2 g
6.73 %
Sodium
5850 mg
243.75 %
Acid
Acid
88
Vitamin A
1726.2 ug
57.54 %
Vitamin C
0.72 mg
1.20 %
Mixed
Nutrition Facts
Per Serve
Calorific Value
130 Kcal
Calories From Fat
63 Kcal
Total Fat
Per 100g
% Daily
(approx.)
Value
7.0 g
10.00 %
89
Saturated Fat
0.74 g
3.70 %
Cholesterol
Nil
2.27 g
3.92 g
Trans Fatty Acid
Nil
Protein (NX6.25)
2.53 g
5.06 %
Carbohydrates
14.0 g
4.70 %
Vitamin A
1491 ug
49.70 %
Sodium
5850 mg
243.75 %
Acid
Acid
90
2. NILONS
Nilons Enterprises Private Limited was founded way back in 1962 by Shri Suresh B.
Sanghavi as a cottage industry. From a humble beginning, Nilons has today become the
largest producer of pickles, Tooty-Fruity and Roasted Vermicelli and is a leading food
company in India. Managed by a professional and dynamic team, Nilons is now among
the fastest growing processed food suppliers in India.
Nilons has a very wide range of quality products including Pickles, Papads, Tooty-Fruity,
Sauces, Vermicelli, Macaroni, Tomato Ketchup and Jams.
An ISO 9001:2000 certified company; Nilons has traditionally paid very high attention to
quality control and customer satisfaction. To ensure that the very best quality reaches the
consumers,
state-of-the-art Microbial and Quality Control Labs are part of its manufacturing facilities.
Every product reaches the consumer only after passing through stringent quality checks.
Nilons has manufacturing plants in Maharashtra and Assam. More manufacturing
facilities are being planned in South and North India to serve our customers more regionally
suitable food products.
Our vision
We will increase value of our company by providing joy and happiness in our consumers
life by continuously providing them products with an excellent quality, with nutritious
values and a mouth-watering taste keeping in mind the regional preferences.
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Our Values
Quality Driven: Offer the best quality products to our consumers, each time.
Customer Centric: Understanding sensitivities of internal and external customers.
Leadership: The courage to shape a better future
Responsive: To the changing market dynamics.
Our corporate culture
People Friendly with freedom to work
Entrepreneurial - Encouragement to take initiatives
Rewards and Recognition to performance
Motivation to innovate and take risks for brand growth
Nilons Achievements
The largest producer and marketer of pickles in the world.
The largest manufacturer of candied fruits (Tooti-fruity) in Asia.
The largest manufacturer of Roasted Vermicelli in India.
6 manufacturing units established across Maharashtra and North East.
ISO and HACCP certified manufacturing plants with hi-tech automation, R&D and
microbial quality test labs are all a part of the sound infrastructure.
Wide network of 27 CSA, 13 Depots and 3000 Distributors enable the brand presence in 4
Lacs + Retail outlets in India.
Nilons quality products are exported to focus markets like France, Japan, Dubai,
Singapore, Malaysia, South Africa, Australia and New Zealand.
Nilons is a preferred and trusted supplier to the leading Indian companies in food.
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PRODUCT OF NILONS
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KETCHUP SAUCES AND CHUTNEY OF NILONS
The perfect accompaniment to pakodas, french fries, sandwiches and a variety of

preparations, Nilon's Ketchup, Sauces and Chutney is every foodies dream delight. Tasty as
ever, it adds just the right zing to mealtimes and will leave you craving for more!
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INDIAN INDIAN SPICES OF NILONS

Formulated by Nita Mehta; the World Renowned Expert - offers a fantastic range of basic
and blended Indian spices from Nilon's which makes everyday cooking an absolute joy!
From chilli powder and garam masala to pav bhaji masala, these essential ingredients found
in India will make all the difference to your dishes.
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Tooty Fruity
These colourful candied bits add all the fun to a whole range of sweet treats like cakes,
biscuits, health bars and ice creams. Did you know? Nilon's is the largest candied food
producer of papaya in the world!
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INSTANT MIXES
From dhokla to gulab jamun, Nilon's Instant Mixes make everyday cooking a breeze.
Finally, you'll be able to spend some quality time with the family!
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PASTES OF NILONS
Why waste hours pounding garlic and ginger when these deliciously aromatic pastes are just
a stretch of a hand away? Everyday cooking is now as easy as 1 2 3 with Nilon's readymade
pastes!
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3. HEINZ
A World of Good Food

The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of
all U.S.-based food companies. Famous for our iconic brands on five continents, Heinz
provides delicious, nutritious and convenient foods for families in 200 countries around the
world. In more than 50 of those countries, we enjoy the number-one or number-two market
position. To learn more visit www.heinz.com.
Heinz (India)
Heinz India started operation in the year 1994 by acquiring the Family Products Division of
Glaxo with powerful brands such as Complan, Glucon-D, Nycil and Sampriti.
Heinz India is fully integrated into the global Heinz operations, employing high standards in
quality at its state-of-the art manufacturing facilities at Aligarh and Sitarganj. The
manufacturing facilities are HACCP certified and follow GFMP (Good Food Manufacturing
Practices) to deliver nutritious and safe food products to our discerning consumers. The
company has four branches (Mumbai, Delhi, Chennai and Kolkata).
Heinz India provides taste and nutrition through globally trusted products like
Heinz Tomato Ketchup and strong local products like Complan - a health drink, Glucon-D an energy drink, Nycil - the most effective prickly heat powder and Sampriti desi ghee
with mahek bhara swaad.
Our iconic brands like Complan & Heinz and category leaders like Glucon-D and Nycil are
being constantly nurtured with a combination of formulation and flavour upgradation,
packaging innovations and new positioning strategies with strong equity quotients.
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Home is where the food is. At least, thats our belief at Heinz. Were passionate about
serving up good food, and we know you are too.
You want to make the most of every moment with your loved ones. You look for delicious,
nutritious food that you can easily make at home. You wont settle for anything less than
exceptional quality and taste.
Because Heinz understands the power of food to connect people, unite cultures and enrich
daily life, we stand today as one of the worlds leading producers of healthy, convenient
foods for every eating occasion. Good food is who we are, pure and simple.
Families have been welcoming Heinz and its products into their homes for more than 140
years. And so we proudly welcome you to ours. Come on in and discover just what were
made of.
Vision and misson of heinz
Our Goals
Our nine established goals established for achievement by 2015 include:
Reducing greenhouse gas emissions by 20%
Reducing energy consumption by 20%
Reducing water consumption by 20%
Reducing solid waste sent to landfill by 20%
Increasing use of renewable energy resources by 15%
Reducing packaging material by 15%
Reducing transportation fossil fuel consumption by 10%
Enhancing sustainable agriculture through a 15% reduction in carbon footprint, 15%
reduction in water usage, and 5% increase in tomato crop yields
Increasing employee engagement
109
Our Sustainability Mission

As the trusted leader in nutrition and wellness, Heinz the original Pure Food Company is
dedicated to the sustainable health of people, the planet and our Company. Heinz has
developed and implemented a universal Sustainability Process across businesses and borders
in order to achieve our sustainability goals.
Corporate profile
Food Safety & Policy

To deliver on our trusted brand status, Heinz has implemented consistent, comprehensive
global food safety management processes across our supply chain. This includes the
application of our two internally designed risk management tools: our Quality Risk
Management Process for controlling residual risk at factories and co-packers; and our
Global Supplier Quality Management Program, which highlights and manages potential
hazards throughout the supply chain. At the end of 2013, Heinz had approximately 5,500
110
suppliers that provided packaging and ingredients to Heinz, 68 Company-owned factories

and 300 co-packers.
Global Quality Management Programs
Our global Supplier Quality Management program helps mitigate the risk associated with
each ingredient that we procure and also allows us to categorize our suppliers based on risks
posed. Based on these risk assessments, we determine the level of scrutiny to which each
supplier is exposed. We have a trained, calibrated and competent team of supplier auditors
based all around the world consistently enforcing Heinz standards. We measure compliance
with this process to ensure that all suppliers are approved by quality and that everything we
buy is covered by a written specification that is signed, understood and agreed by the
supplier. We have been applying absolute rigor to the system and maintaining compliance
levels at 100%.
We use our Quality Risk Management Process (QRMP) to drive consistent best practices at
our factories and co-packers. This process is a proactive quality management system that
focuses and directs activities at our factories and co-packers to control food safety hazards.
This process is based on internal and externally recognized quality standards, including ISO
9001, ISO 2200 and Hazard Analysis and Critical Control Points (HACCP), a food safety
risk assessment process focused on controlling biological, chemical and physical hazards
within the food chain.
As our Companys key Food Safety & Quality leading measure, this correlates well with our
lagging measures of Product Recalls and Consumer Complaints. In order to continually
improve the effectiveness and efficiency of our performance, a risk-based prioritized
improvement plan is developed every year for each plant. In the past two calendar years, the
food industry has seen the instance of public recalls rise. Heinz has improved our
performance, experiencing only two recalls in the past four years.
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Mission and valus
BRAND AND PRODUCT OF HEINZ
Heinz Tomato Ketchup is made with tomato paste from fresh, red ripe
tomatoes, carefully blended with our unique spices to give you the thick and rich taste that
you and your family will love.
Heinz Tomato Ketchup is unique in the sense that it has no artificial preservatives, colours,
flavours or thickeners. This is quite contrary to the popular consumer perception that all
112
ketchups need preservatives.

It is packed in with an imported airtight metal cap (this special packaging is the first for the
ketchup category in India) through a special vacuum sealing process (note the POP sound
when the bottle is first opened) which ensures longer lasting freshness for the product. The
pop up cap indicates that the bottle is in good quality and not tampered with.
When you take special hybrid tomatoes for high quality
pulp, the finest natural vinegar, spices of the best
quality and add them to a recipe created specially for
Indian palates you get the unique and unbeatable taste
of Heinz tomato ketchup. The taste that everybody
loves!
Heinz is the only tomato ketchup that is entirely devoid

of artificial preservatives, colours, flavours and
emulsifiers. It is rich in Lycopene, an antioxidant that
has been scientifically proven to reduce the risk of
certain types of cancer.
Heinz is almost synonymous with Ketchup around the

world. In, India Heinz is steadily catching up with the
consumers and their Indian food palate. The unique
taste of this tomato sauce with the right blend of spice
and sweetness enhances the taste of snacks from French
fries and Burgers to Sandwiches and Samosas. Children
love to have sauces with their meals to make them more
enjoyable and that's why we call it Good Food
Everyday with "Heinz Tomato Ketchup"
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Features
Benefits
Pure and
Contains only food ingredients like tomato, sugar, vinegar and spice extracts.
natural
Contains no artificial additives like gums, preservatives etc.
Specially
Ensures longer lasting freshness for the product. The Pop up cap indicates that the
imported
bottle is in good quality and not tampered with.
caps with
safety
Helps consumer identify the quality on receipt.
buttons
Uses
Lycopene serves as an anti-oxidant which is good for health. Research from
Lycopene
across the world suggests that a diet rich in Lycopene helps reduce the risk of
rich
some kinds of cancer, heart disease and other ailments.
tomatoes
which are
produced
under the
special
supervision
of Heinz
Marketing Self-Regulation on Health & Nutrition

Heinz demonstrated our commitment to food safety by maintaining clear and accurate
nutrition labeling on our products. Our focus on factual, transparent labeling included
informing consumers about potential allergens as well as gluten-free products.
In the United States, Canada, Italy, Indonesia, New Zealand, China and India, all Heinz
products carry the mandatory nutrition information. In the UK, in addition to the nutrition
information, Heinz also includes salt equivalent labeling, and where space permits,
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Guideline Daily Amounts. In the Netherlands, Heinz committed to the Energy Logo
Initiative which indicates the amount of calories per portion of product.
Awards & Recognition
Dow Jones Sustainability Indexes (DJSI)

Heinz has been rated Bronze class as a DJSI world member and as a sustainability leader in
North America.
Newsweek Green Rankings

Heinz was recognized in the Newsweek Green Rankings in the Top 500 companies and a
top ten most transparent company.
Worldstar Packaging Award

Heinz Australias Golden Circle Bottle. A new bottle design was recognized by the World
Packaging Organization.
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Lean and Green Award

Heinz Italia was awarded a Lean and Green Award for Excellence in Sustainable
Logistics.
Corporate Responsibility Magazine Ranking

Heinz was recognized as one of the Top 10 best corporate citizens in the Consumer Staples
sector.
Justmeans Social Innovation Awards

In 2012, Heinz won the award for the Best Incorporation of Ethical Sourcing/Certification.
Packaging Sustainability Pillars
Our sustainable packaging design policy outlines four sustainability pillars (below) which
are embedded into every packaging and new product initiative at Heinz. Specific
considerations include the identification, evaluation and use of environmentally friendly
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packaging materials such as plant-based materials; minimizing the overall amount of

packaging materials consumed; and optimizing designs for transport efficiency.
Reduce Optimize designs to minimize use of packaging materials while ensuring product
protection throughout the supply chain, and proper performance for our consumers (e.g.,
eliminate components, light-weighting).
Reuse Reuse packaging components where possible throughout the supply chain to
minimize material waste and its associated carbon footprint (e.g. reusable totes, pallets, slip
sheets).
Recycle Utilize recyclable materials, where possible. Incorporate post-consumer recycled
content where feasible.
Renew Evaluate and utilize packaging materials derived from renewable sources (such as
plants) to reduce carbon footprin
Heinz product
Our Proud History

When Henry J. Heinz founded his Company in late 1869, among his product line of pure,
quality products were horseradish, pickles, and various sauces. The Company also
manufactured vinegar to preserve the appearance and flavor of its processed pickles and
other condiments. Soon thereafter, Heinz became the country's first manufacturer to
package vinegar in individual bottles for home use. Vinegar was also a necessary ingredient
in the making of HeinzKetchup, first introduced in 1876.
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More than 100 years later, Heinz continues the tradition of processing high quality vinegar
for consumers who expect the best for their cooking and pickling needs. Sourced from corn
and grapes, Heinz Vinegar always delivers consistent, good-tasting flavors for the foods
you love to eat!
In the early 1880's, Heinz packaged its vinegar in the ever popular "paneled" bottle, with a
Keystone label and a guarantee of pure, natural vinegar on the label. Vinegars were also sold
to grocers in paraffin-lined oak casks. Each cask carried an end label guaranteeing the
quality of the vinegar and listing numerous awards.
In the early 1900's, Heinz sales representatives held samplings in many grocery stores on
Saturdays. Homemakers tasted various types of vinegars -White, Apple Cider, Pickling,
Wine and Malt - and selected the variety they would buy. At the same time, many
homemakers tasted commercially processed vinegar for the first time. Previously, all
vinegar was fermented in barrels or crocks that were stored in barns or basements.
According to a 1901 H.J. Heinz Company employee newspaper:
"The old vinegar barrel lying in the cellar, or at the side of the barn for three or four years,
has been supplanted by appliances that retain the natural flavor of the fruit and keep it free
from impurities of all kinds. Cleanliness, purity and wholesomeness the secret of H.J
Heinz Company's great success in making vinegar."
Today, as one of the world's largest and oldest producers of vinegar, Heinz manufactures
more than 7.5 million gallons of vinegar annually to supply American households with its
popular and versatile food product
Made from Ingredients of the Highest Quality
Since 1869, Heinz Vinegars have always been produced to our stringent quality standards.
Made from sun-ripened corn, sweet apples and the finest grapes, they continue to be the #1
branded vinegar in the US.
The All Natural National Brand Vinegar
Heinz Distilled White and Apple Cider Vinegars are guaranteed to only be made from sunripened corn or apples.
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While Apple Cider Vinegar and Distilled White Vinegar are America's favorites, other
specialty vinegars are gaining popularity. Heinz offers a wide array of specialty vinegars,
including Salad Vinegar, Red Wine Vinegar, Malt Vinegar,Balsamic Vinegar, Tarragon
Vinegar, Garlic Wine Vinegar,Cleaning Vinegar, and Unfiltered Apple Cider Vinegar.
Discover the wonderful world of Heinz Vinegars. Wherever you find a use for
Heinz Vinegar when cooking, in the kitchen, family room, bathroom, laundry room, or
around the house we think you'll be amazed... Naturally!
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4. ANNAPURNA GROUP LIMITED
The Golden beginning of Annapurna Group started in the year 1952 by Late Gaurango Ch.
Ghosh in the name of Sundarbans Dairy Firm with its brand Annapurna.
With the Advent of time the company is growing continuously and now it has become one
of the leading brand of Eastern India known as Annapurna.
It has four operational Wings
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Existence of The Annapurna Group across India
With the advent of time The Annapurna Group has successfully immerged from a city of
Guwahati and today it has spread its wings in several parts of India which in itself depicts
the strong determination and hard work by the efficient management and the employees of
The Annapurna Group.
HISTORYOF THE COMPANY
1952
Inception of Sundarbans
Dairy Firm with its only
product Ghee and cream.
Later it introduced one
more product honey.
1995
Introduction of
Sundarbans Food Products
which produced different
Snacks item.
1999
Sundarbans Food products

became a private ltd
company and named as
Sundarbans Food Products
(I) Pvt.Ltd. It started to
produce agro based food
products. It also took over
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Sundarbans dairy Firm.

2003
Satez Agro Products Pvt.

Ltd. was formed to
produce Agro based food
products.
2006-07
Annapurna Food and

Beverages started and
which produce fruit based
beverage items under the
brand called FUNDAAZ.
2010-11
Unit (II) of Annapurna

Food and Beverage is
added to produce
packaged drinking water
and club soda under the
brand SPRINT.
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MISSION AND VISION OF THE COMPANY
Mission
To Provide Good Healthy dairy and agro based food products to the people of India.
Vision
Annapurna strives to build a healthier society, by improving the lives of people across India
& providing innovative and quality food products, thereby establishing ANNAPURNA as
the leading brand of Eastern India and India by the end of year 2015.
2012-13
To strengthen its operational wings across different parts of Eastern India namely Bihar,
Odisha, WestBengal
2013-14
After building up in Northern and Eastern part, finally to broaden its business across PAN
India.
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OBJECTIVE
To develop products that would be beneficial to health and excellent in taste.

To offer consumers quality products at reasonable price.
To establish a good marketing and distribution Network that would reach every corner of
India.
To achieve highest level of consumer confidence in Annapurna Brand.
To provide employment to the citizen of India.
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PRODUCT OF ANNAPURNA
Annapurna Pickle
Pickles form an essential part of every Indian Kitchens. The traditional method of making
pickles is probably far above the other methods of making pickles. And above all the Indian
spices added to the pickles makes it even more tasty and flavoured. Keeping this in mind,
we follow a very systematic process of pickling following the Indian traditional method as
well as scientific method of pickling. So, that you get the taste & flavour of home made
pickles. We use very selected and excellent quality spices in the pickles. Annapurna Pickles
are prepared using fresh fruits and vegetables, salt, mustard oil & various spices.
So set your mouth to the tingling taste of Annapurna Pickles
Annapurna Pickles are available in the following variations:

RED CHILLI PICKLE STUFFED
ANNAPURNA Red Chilli Pickle is a tangy and pungent Pickle made with Quality Red
Chillies, Salt, Mustard Oil and spices with a hint of Amchur. Sure to give anyone brisk taste
with added kick.
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MIXED PICKLE
ANNAPURNA Mixed Pickle is a tangy and pungent Pickle made with Quality fresh
Vegetables, Salt, Mustard Oil and spices with a hint of Ginger. Sure to give anyone brisk
taste with added kick.
GREEN CHILLI PICKLE
ANNAPURNA Green Chilli Pickle is a tangy and pungent Pickle made with Quality Green
Chilli, Salt, Mustard with a hint of Lime Juice. Sure to give anyone brisk taste with added
kick.
LEMON PICKLE
ANNAPURNA LEMON Pickle is a tangy and pungent Pickle made with Quality Lemons
Pieces, Lime Juice, with a hint of Citric Acid. Sure to give anyone brisk taste with added
kick
MANGO PICKLE
ANNAPURNA Mango Pickle is a tangy and pungent Pickle made with Quality Mango
Titbits, Salt, Mustard with a hint of Oil. Sure to give anyone brisk taste with added kick.
MIXED PICKLE (Pouch)
ANNAPURNA Mango Pickle is a tangy and pungent Pickle made with Quality Mango
Titbits, Salt, Mustard with a hint of Oil. Sure to give anyone brisk taste with added kick.
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Annapurna Vinegar (NON-FRUIT)
Annapurna Non Fruit Vinegar is available in white and red colour.Annapurna Non- Fruit
Vinegar (WHITE) is prepared from Water and Acetic Acid. Annapurna Non- Fruit Vinegar
(RED), is prepared from Water, Acetic Acid and Caramel.
Annapurna Vinegar can be used for dressings and regular cooking. Use it sparingly, or
substitute lemon, tomato, or grape fruit juice in recipes with vinegar.
Annapurna Non-Fruit Vinegar can be used as flavours to sauces, marinades, dressings, as
well as sweet & sour dishes and also in making pickles.
Annapurna Non-Fruit Vinegar can even function as a natural health and beauty treatment
in addition to being a valuable ingredient in various recipes and used for cooking purposes.
VINEGAR(Red)
ANNAPURNA Vinegar(Red) is a tangy and pungent vinegar made with Acetic Acid. Sure
to give anyone brisk freshness with added kick.
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5. HUL (HINDUSTAN UNILEVER LIMITED)
Hindustan Unilever Ltd, Indias largest FMCG company, has been losing market share in
key categories such as branded soaps, detergents, toothpastes and tea over the last four
quarters.
Hindustan Unilever Ltd (HUL), Indias largest FMCG company, has been losing market
share in key categories such as branded soaps, detergents, toothpastes and tea over the last
four quarters. The company which accounts for over 58% of the annual net sales of the top
five in the sector has its competitors like ITC, Godrej Consumer Products and now Wipro
Consumer Care gunning for cutting down that share.
In the branded tea industry, for instance, Tata Tea has gained volume leadership with 20.3%
market share in the last twelve months, while HULs share stands at 18.8%. In the branded
toilet soaps category, Godrej No 1 and Wipros Santoor have gained market share at the cost
of HULs Lux and Breeze. Echoing Voras views, Anand Shah, analyst with Angel Broking,
said many FMCG companies held on to their price points when HUL raised prices last
year. This has partly been the result of consumers cutting back on some of the premium
brands, where HUL leads, in an inflationary environment, said Nikhil Vora, managing
director of IDFC SSKI Securities. "De-focus on the mass segment and sharp price increases
taken during inflationary environment a year back has cost HUL a significant loss in market
share, particularly in the mass end of soaps and detergents.
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The company is aware of the challenges. Nitin Paranjpe, CEO of HUL said to regain its
share in mass markets soaps and detergents, it has recently introduced a series of measures
to improve consumer value. In the last few months, we have indicated that our primary
goal remains getting volumes back and our competitive growth back. We have opted for a
combination of improved product quality, appropriate pricing and improved in-market
executions.
Harish Manwani, chairman of HUL, says they will sustain growth on the back of
innovations and sharper focus on market execution. This means the company will be
conservative on its capital spend, investing only in growth areas.
In soaps and detergents, we are actively strengthening our full portfolio and improving our
competitiveness in the mass segment. In fact, we have already taken actions in the mass
segment. These actions will begin to play out as we go into the next couple of quarters, he
added. The company has therefore recently introduced a series of interventions to pump up
volumes in the branded personal wash sector. To start with, it has re-launched its entire
portfolio
Hindustan Unilever (HUL) is India's largest fast moving consumer goods company, with
leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands,
spread across 20 distinct consumer categories, touch the lives of two out of three Indians. In
the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap
bars, embossed with the words 'Made in England by Lever Brothers'. With it, began an era
of marketing branded Fast Moving Consumer Goods (FMCG).Soon after followed Lifebuoy
in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918
and the famous Dalda brand came to the market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited
(1935). These three companies merged to form HUL in November 1956; HUL offered 10%
of its equity to the Indian public, being the first among the foreign subsidiaries to do so.
Unilever now holds 52.10% equity in the company. The rest of the shareholding is
distributed among about 360,675 individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company
had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was
formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition.
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The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in
1972, and in 1977 Lipton Tea (India) Limited was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold
through an international acquisition of Chesebrough Pond's USA in 1986.
Since the very early years, HUL has vigorously responded to the stimulus of economic
growth. The growth process has been accompanied by judicious diversification, always in
line with Indian opinions and aspirations.The 1990s also witnessed a string of crucial
mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile
Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In
1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business
from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation
companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond
India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL),
enabling greater focus and ensuring synergy in the traditional Beverages business. 1994
witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the
company entered into a strategic alliance with the Kwality Icecream Group families and in
1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998.
The two companies had significant overlaps in Personal Products, Speciality Chemicals and
Exports businesses, besides a common distribution system since 1993 for Personal Products.
The two also had a common management pool and a technology base. The amalgamation
was done to ensure for the Group, benefits from scale economies both in domestic and
export markets and enable it to fund investments required for aggressively building new
categories.
In January 2000, in a historic step, the government decided to award 74 per cent equity in
Modern Foods to HUL, thereby beginning the divestment of government equity in public
sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic
extension of the company's wheat business. In 2002, HUL acquired the government's
remaining stake in Modern Foods.
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In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the
Amalgam Group of Companies, a leader in value added Marine Products exports.
HUL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk,
Clinic, Pepsodent, Closeup, Lakme, Brooke Bond, Kissan, KnorrAnnapurna, Kwality
Wall's are household names across the country and span many categories soaps,
detergents, personal products, tea, coffee, branded staples, ice cream and culinary products.
They are manufactured over 37 factories across India. The operations involve over 2,000
suppliers and associates. HUL's distribution network, comprising about 2,500 redistribution
stockists, covering 6.3 million retail outlets reaching the entire urban population, and about
250 million rural consumers.
HUL has traditionally been a company, which incorporates latest technology in all its
operations. The Hindustan Unilever Research Centre (HURC) was set up in 1958, and now
has facilities in Mumbai and Bangalore. HURC and the Global Technology Centres in India
have over 200 highly qualified scientists and technologists, many with postdoctoral
experience acquired in the US and Europe.
HUL is also running a rural health program Lifebuoy Swasthya Chetana. The program
endeavours to induce adoption of hygienic practices among rural Indians and aims to bring
down the incidence of diarrhoea. It has already touched 120 million people in approximately
50, 676 villages across India. The vision is to make a billion Indians feel safe and secure.
FMCG major Hindustan Unilever (HUL) has received its boards nod for divestment of
43.31% stake in Hindustan Field Services (HFS) to Smollan Group 30 June 27, 2010. HFS
is a joint venture (JV) company between HUL and Smollan Holdings. It was incorporated
for building capabilities for 'instore' execution in Modern Trade and operates as a dedicated
venture with processes, capability and culture of execution. Smollan Group currently holds
49% stake in HFS.
In 2012 HUL entered into an agreement with Unilever for manufacturing, marketing and
distributing the Brylcreem brand in India.
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Product range of the company includes:

Home & Personal care
Personal wash
Lux
Breeze
Lifebuoy
Dove
Liril
Pears
Hamam
Rexona
Laundry
Surf Excel
Rin
Wheel
Sunlight
Hare care
Sunsilk Naturals
Clinic
Deodorant
Axe
Rexona
Ayurvedic Personal & Health Care
Ayush
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Skin Care
Fair & Lovely
Pond's
Vaseline
Aviance
Oral Care
Pepsodent
Closeup
Colour Cosmetic
Lakme
Foods
Tea
Brooke Bond
Lipton
Coffee
Brooke Bond Bru

Foods
Kissan
Annapurna
Knorr
Ice Cream
Kwality Wall's
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Achievements/ recognition:
Hindustan Unilever Limited (HUL) has emerged as the No. 1 Employer of Choice across
all sectors for the 2014 graduating batch of BSchool students
Awarded top Indian company in the 'FMCG' sector for the third consecutive year at Dun
& BradstreetRolta Corporate Awards, 2009
HUL ranked fourth in the Top Companies for Leaders, 2009' (Asia Pacific region) and
10th place in the global rankings in a survey carried out by Hewitt Associates
Awarded Customer and Brand Loyalty Award by Business India & Business Standard in
2009
Awarded for Best Corporate Social Responsibility Practice at the Social & Corporate
Governance Awards 0809 by BSE, Nasscom Foundation and Times Foundation
Awarded in the Category 'FMCG Manufacturing Supply Chain Excellence' at the Third
Express, Logistics & Supply Chain Awards by APL Logistics, Indiatimes, Mindscape,
Business India Group in 2009
The companys Orai unit received the Gold Excellence award and the Khalilabad unit
received the Silver Excellence award in the environment category by Greentech
Foundation in 2009
HUL's Goa factory won a Gold Trophy at the Greentech Awards in 2009 the
manufacturing sector category for their outstanding work in Safety Management
Project Shakti won the Silver Trophy at the EMPIIndian Express Indian Innovation
Awards, 2009
Kwality Wall's Swirl's awarded 'The Franchisor of the year' for the Icecream parlour
category by Franchise India in 2009
HUL was felicitated for receiving the highest number of patents in the year 2009 at
Annual Intellectual Property Awards 2010. The award was instituted by Confederation of
Indian Industry (CII) in association with Department of Industrial Policy & Promotion
(DIIP) and Intellectual Property India (IPI) in New Delhi.HUL brands have topped Brand
Equity's Indias Most Trusted Brands Survey rankings for 2010. Six HUL brands (Lux,
Lifebuoy, Clinic Plus, Pond's, Fair & Lovely and Pepsodent) featured in the top 10 and
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eight in the top 20. All together there are 17 HUL brands among the 100 most trusted
brands in the 2010 survey. Additionally, five HUL brands (Fair & Lovely, Lifebuoy,
Lux, Pepsodent and Ponds) featured in the list of ten Hall of Fame brands. This
recognition was accorded to brands which consistently ranked high in the survey over the
last 10 years since its inception. In 2009, three HUL brands featured in the top ten, and
seven in the top twenty.
Received CNBC AWAAZ Consumer Awards in six categories for 2010 Green
company of the year, Value for money brand of the year, Ad effectiveness award,
Marketer of the year award across all categories, Most preferred personal care company
in FMCG category (for the third consecutive year), Most Preferred home care company in
FMCG category (for the third consecutive year).
HUL received the Award for Excellence in HR in 2010 from Confederation of Indian
Industry (CII). This is a rigorous factbased assessment which is conducted by a team of
external assessors. HUL has won this award for the third consecutive year.
Five of HUL's leading brands Lux, Dove, Pears, Clinic Plus and Sunsilk won the
Reader's Digest Trusted Brand 2008 Awards.
Four HUL brands featured in the top 10 list of the Economic Times Brand Equity's Most
Trusted Brands 2008 survey
HUL was awarded the Bombay Chamber Civic Award 2007 in the category of
Sustainable Environmental Initiatives.
HUL was selected as the top Indian company in the FMCG sector for the Dun &
Bradstreet American Express Corporate Awards 2007.
HUL is also one of the country's largest exporters; it has been recognised as a Golden
Super Star Trading House by the Government of India.
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HUL (Hindustan Unilever Limited)

Parent Company
Unilever Limited
Category
Consumer Products, Food & Beverages
Sector
FMCG
Tagline/ Slogan
Small Actions, Big Difference
USP
India's largest fast-moving consumer goods company
STP
Segment
Products and services for daily needs
Target Group
Every Indian household especially the middle class

Being the largest FMCG company , their little efforts
Positioning
make a huge difference in the lives of people
Product Portfolio
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Consumer Products
1. Active Wheel
2. Cif
3. Comfort Fabric
4. Domex
5. Rin
6. Surf
Excel
7. Vim
8. Aviance
10.Ayush
9. Axe
11.Clear
12.Clinic
14.Dove
15.Fair &
Plus
13.Close Up
Lovely
Brands
16.Hamam
17. Lakme
18.Lifebuoy
19.Liril 2000
20.Lux
22.Pepsodent
23.Ponds
25.Sunsilk
26.Vaseline
21.Pears
24.Rexona
Food & Beverages

1.Brook Bond
2.TajMahal
3.Bru
4.Kissan Jam
Squash
5.Kissan
6.Lipton
7.Kwality Walls
137
8.Kissan Ketchup
DIRECTORS' REPORT and Management Discussion and Analysis

To the Members,
1. Your Company's Directors are pleased to present the 81st Annual Report of the Company,
along with Audited Accounts, for the financial year ended 31st March, 2014.
2. DIVIDEND
Your Directors are leased to recommend a Final Dividend of Rs. 7.50 per equity share of
face value of Re. 1/ each for the year ended 31st March, 2014. The Interim Dividend of Rs.
5.50 per equity share was paid on 15th November, 2013.
The Final Dividend, subject to approval of Members at the Annual General Meeting on 30th
June, 2014, will be paid on or after 4th July, 2014 to the Members whose names appear in
the Register of Members, as on the date of book closure, i.e. from Friday, 13th June, 2014 to
Monday, 30th June, 2014 (inclusive of both dates). The total dividend for the financial year,
including the proposed Final Dividend, amounts to Rs. 13.00 per equity share and will
absorb Rs. 3,272.97 crores, including Dividend Distribution Tax of Rs. 461.54 crores.
3. RESPONSIBILITY STATEMENT
The Directors confirm that:
in the preparation of the annual accounts, the applicable accounting standards have been
followed and that no material departures have been made from the same;
they have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent, so as to give a true and fair view
of the state of affairs of the Company at the end of the financial year and of the profits of the
Company for that period;
they have taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 1956, for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities; and
they have prepared the annual accounts on a going concern basis.
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MANAGEMENT DISCUSSION AND ANALYSIS

In order to avoid duplication between the Directors' Report and the Management Discussion
and Analysis, we present below a composite summary of performance of the various
businesses and functions of the Company.
4 ECONOMY AND MARKETS
The year witnessed divergent growth globally, led by strengthening of the US economy,
uneven and subdued growth in the Euro area and Japan coupled with a slowdown in
Developing & Emerging markets.
In the domestic market, growth continued to be muted with the second successive year of
sub 5% GDP growth. The year saw steep currency depreciation in an environment where
industrial activity remained in contraction mode, consumption demand continued to weaken,
while lacklustre capital goods production pointed to stalled investment demand.
With sluggish growth across the larger economy, further compounded by high consumer
inflation and weak sentiment, market growth across FMCG categories moderated
throughout the year in both volume and value terms. The discretionary categories and
premium segments were particularly under pressure. The operating context for the year was
challenging, given the backdrop of a market slowdown, a volatile input cost environment
and heightened competitive intensity.
Your Company's performance for the year 201314 has to be viewed in the context of
aforesaid economic and market environment
5. PERFORMANCE OF BUSINESSES AND CATEGORIES
5.1. Home & Personal Care (HPC)
The Home & Personal Care (HPC) business consists of Soaps, Detergents, Household Care
and Personal Products, which includes categories like Skin Care, Hair Care, Oral Care,
Colour Cosmetics and Deodorants. During the year, the HPC business registered robust
growth ahead of market.
The opportunity for growth in India continues to be immense across all HPC categories.
This fact is also reflected in high levels of competitive intensity in the marketplace. Your
Company believes that both unwavering focus on competitive growth in core categories as
well as market development to build segments of future are critical for sustained growth and
long term value creation. While focusing on the core categories, your Company has also
139
invested significantly in the segments of future, i.e. the segments which are expected to
drive future growth.
Rural continues to be a key area of focus for your Company. During the year, your
Company reached out to 8,500 villages across India with an ambition to improve the health
and hygiene of children, through school contact and Mohallaprograms. At the School
Contact Program, your Company's brands, Lifebuoy and Pepsodent, encouraged and
educated children on the importance and correct method of handwashing and brushing their
teeth. In the Mohallaprogram, your Company demonstrated to consumers the benefits and
usage of new and emerging categories, such as facewash, hair conditioners and fabric
conditioners.
In a highly competitive scenario, where new brands and offerings are entering the market
almost every quarter, your Company delivered competitive growth, driven by innovation,
sharper inmarket execution, competitive marketing and trade investments behind the
brands. Your Company sustained strong focus on innovation across the portfolio and
continued to delight consumers with a range of exciting offerings launched during the year.
Your Company has also significantly stepped up investment in Digital Media, which is
expected to be the media channel of the future. Your Company continued to leverage and
benefit from the inputs received from Unilever across various aspects of the business,
including technology, innovation and communication.
Volatile and rapidly changing commodity markets, including vegetable oil and crude oil,
coupled with depreciating currency markets continued posing a major challenge during the
year. There were also regulatory changes in the space of media availability, leading to more
efficient media buying and better deployment of nonTV led media. Even in this
challenging environment, your Company delivered profitable growth through robust cost
saving programs and judicious pricing, without compromising on the competitiveness of
brand investments, both in terms of technology as well as advertising and promotion.
5.2. Foods & Beverages (F&B)
The Foods & Beverages (F&B) portfolio of your Company comprises Tea, Coffee,
Processed Foods, Frozen Desserts, Ice Creams, Bakery products and Out of Home
operations, including BRU World Cafe.
During the year, F&B business delivered strong double digit growth in a challenging market
context. This was driven by a single minded focus on the core brands and driving market
140
development across key categories. The Packaged Food category continues to represent a
significant consumer and business opportunity, given the shifts in the income pyramid,
increase in working women, growing health concerns and the need for taste with
convenience. Your Company is consistently focused on developing newer offerings that can
best fulfil existing and emerging consumer needs. Your Company continues to focus on
driving availability and distribution, alongside building salience for its brands and
relevance. In addition, your Company is driving upgradation across categories with strong
research and development support from Unilever and a deep insight into Indian consumer
and customer needs.
5.2.1. Beverages
The Beverages segment delivered 12.4% turnover growth in the year, well ahead of the
market, on the back of a strong double digit performance in Tea. This was accompanied by a
significant step up in segmental profits which increased by 22.4%.
At the onset of the year, the Packet Tea market witnessed steep commodity inflation which
drove market to volume decline. Despite this environment, your Company delivered
competitive and profitable growth. The double digit growth across all brands was driven by
a strengthened mix and focused inmarket activities.
Your Company drove its five leading brand positions across India, with all brands recording
healthy volume growth and growing across major geographies. Across both the premium
and popular price segments, brands grew competitively. Taj Mahal and 3 Roses continued to
drive premiumisation and Red Label and Taaza offered unbranded tea users a good mix of
superior, great tasting tea and value. Taj Mahal and Lipton continued to grow the tea bags
market through market development. Your Company strengthened its position in every
segment of tea bags market, particularly flavoured and green tea.
The Instant Coffee market was challenged for growth in the context of steep commodity
inflation in the previous year with the accompanying drop in consumption, particularly in
the core South markets. In this context, your Company's focus was to drive back lapsers to
the category, through enhanced product experience and market development efforts. Your
Company also continued to drive BRU Gold a premium offering, targeted at new age
consumers of coffee in the nontraditional markets. BRU Gold met with good success as the
franchise grew competitively ahead of markets.
5.2.2. Packaged Foods
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The Packaged Foods segment of your Company comprises culinary products such as jams,
ketchups and squashes under Kissan; soups, soupy noodles and meal makers under Knorr;
branded staples (atta and salt) under Annapurna; bakery products under Modern; and frozen
desserts / ice creams under Kwality Wall's and Magnum. The segment delivered 10.0%
turnover growth with a segmental profit growing by 65.5% during the year, as your
Company continued to drive efficiencies and mix, while continuing to invest in building this
business.
Kissan sustained its strong, consistent performance, delivering another year of double digit
growth, driven by impactful activation around unlocking everyday relevance. A strong
insight of the 'Tiffinmoment' being a stress point in the mother's life resulted in a solution
in the form of 'Kissan Rolls', where mothers could give their kids healthy vegetables made
tastier with Kissan in the form of a roll. This singular message, along with our reiteration of
the fact that Kissan is made from 100% tomatoes through 'Kissanpur', made Kissan the
brand of choice. During the year, Kissan moved up 70 places in India's Most Trusted
Brands. The consumer preference, along with a strong distribution increase across both
Ketchup and Jam, resulted in the business growing significantly faster than the market.
The performance of Knorr in the year was led by Soups, with the convenient Instant Soups
single serve format doing particularly well. Your Company has increased the focus on core
soup markets and ensured that the brand salience is at its highest in these markets. Your
Company also invested behind the instant 'cupasoup' range, as this portfolio is driving
growth for the soups category, given its consumer offering of tasty and healthier products, at
a very affordable price. Knorr Soupy Noodles was restaged at the start of the year. The
Knorr Meal Maker portfolio was also relaunched and has met with an encouraging initial
response.
During the year, your Company focused on growing the Annapurna business profitably.
Towards achieving this objective, your Company made sharp choices on the brand's
footprint and improved its cost structure. As a result, there is a significant progress in brand
profitability, which now allows your Company to be competitive and invest back in the
brand.
Your Company also significantly focused on young nascent experiential marketing. Given
that most of the play is in market development categories, it is critical that consumers
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sample your Company's products and discover the great taste and convenience that the
products offer.
Modern Foods, a portfolio of Bakery Foods, continued its momentum delivering strong
double digit growth with improved profitability. Your Company stepped up distribution
network in new geographies and this initiative has yielded encouraging results. Key
innovations like Oats and Ragi Wheat Bread, festive Cakes and Cookies, coupled with
improved operational efficiencies contributed well to the growth and profitability of the
Modern Foods business.
During the year, the Frozen Desserts business faced a challenging external environment
with slowing discretionary spends and a shorter season. But with long term positive outlook,
your Company continued investing behind the distribution expansion and building big
brands. Cornetto grew ahead of market on the back of distribution and strong
communication. Cornetto also remained at the forefront of your Company's digital strategy.
Cornetto's Facebook page was adjudged as No.1 in India by an advertising magazine.
Magnum, Unilever's most premium ice cream brand, was test piloted in Chennai during
2013 and met with a very good response. Magnum was rolled out to four more cities in the
beginning of 2014. Modern Trade performance has been very good in Ice Creams as your
Company strengthened its position in this key channel. During the year, your Company also
rolled out Perfect Stores program, a first for the category and the performance across these
stores has been leading overall category growth. Availability and visibility are still the core
drivers of the business and your Company continued investing behind them. Your Company
is driving efficiencies in the business, particularly in asset management and infrastructure,
while stepping up investments behind big impulse brands, viz. Magnum, Cornetto and
Paddle Pop.
5.3. Exports Business
FMCG Exports (Unilever India Exports Limited)
Unilever India Exports Limited (UIEL) is a wholly owned subsidiary of your Company,
engaged in FMCG Exports business. The focus of the FMCG exports operation is twofold
(a) to develop overseas markets by driving distribution of ethnic brands, such as Kissan,
BRU, Brooke Bond, Lakme, Pears among the Indian diaspora in international markets, (b)
to effectively provide cross border sourcing of FMCG products to other Unilever companies
across the world.
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The Home and Personal Care segment in the exports business has witnessed a stable year,
driven primarily by Soaps and Hair Care. Brands like Pears have registered healthy growth
in the focused markets through strong advertising and activation support and have received
strong accolades from the consumers in the UK market. For Unilever sourcing countries,
Lifebuoy has delivered double digit growth post its launch across Asian markets. Fair &
Lovely and Vaseline Jelly continue to show stable growth in the key geographies of the
Middle East. The Foods & Beverages segment of the business witnessed a modest growth.
Instant Tea / Packet Tea and premix witnessed strong double digit growth, whereas coffee
sales remained steady. The profitability of the overall segment improved significantly with
focused cost reduction programs.
NonFMCG Exports
In the specialty business, which continued to be a part of your Company post the demerger
of FMCG Exports business to UIEL, Rice maintained a flat performance, while continuing
to focus on expanding geographies, seeding opportunities and marketing/ brand building
initiatives to accelerate growth in the coming years.
Leather (Pond's Exports Limited)
The Leather business performed well with improved operating profitability and robust
double digit sales growth. This performance was achieved through new product designs,
excellent customer service, world class quality and cost innovations.
5.5. Beauty & Wellness (Lakme Lever Private Limited)
Lakme Lever Private Limited (LLPL), a wholly owned subsidiary of the Company, has 225
salons, of which 57 are Company owned / managed and 168 are franchisee salons. LLPL
delivered double digit salon growth for the fourth consecutive year, although the market
slowed down by consumers pulling back on discretionary spends. Net expansion improved
from 8 salons in the previous year to 36 salons in this financial year. Innovations like the
Perfect Radiance and Youth Infinity facial rituals have delighted consumers and driven
growth. The flagship Lakme Absolute Salon, which magnifies the backstage experience
with professional styling expertise and bespoke beauty rituals, was launched in Mumbai.
Your Company will continue to support LLPL to drive growth in this attractive market
opportunity.
5.6. Hindustan Unilever Network
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Hindustan Unilever Network business consists of three major brands, Aviance (Personal
Care), Lever Ayush (Health Care) and Lever Home (Detergents, Household Care and
Toothpaste).
The year has been extremely challenging for the entire direct selling industry, including for
your Company, due to ambiguity on acceptable norms for direct selling in India. As
responsible corporate citizens, your Company has always conducted its business within the
framework of Indian law and has recently relaunched its compensation plan to be more
competitive. Your Company is reviewing the strategy for this business.
5.7. Kimberly Clark Lever Private Limited (KCL)
KCL is a Joint Venture between your Company and KimberlyClark Corporation, USA,
with infant care diapers as its primary product category. The year witnessed a strong growth
delivery by Huggies brand led by Huggies Wonder Pants. The relaunched Huggies Wonder
Pants with improved product features and performance had a good growth momentum
throughout the year. The low penetration levels in India's infant care diapers markets offer
significant growth potential for this category. This growth opportunity has attracted
increased levels of competitive intensity in the recent past with multinationals making
significant investments in India.
To participate effectively in this growth opportunity, KCL aims to bring in regular
innovations to the market through sustained and appropriate investments in the short to
medium term. As a Joint Venture partner, your Company remains committed to this
6. CUSTOMER DEVELOPMENT
During the year, your Company has undertaken and delivered several ambitious initiatives
to reaffirm its position as a preferred channel partner for over 2,500 redistribution stockists
and millions of retailers across the country.
Your Company has always strived to expand distribution to connect the shoppers and brands
as widely as possible. During the year, your Company took an ambitious challenge of
adding more outlets under its coverage expansion programs and deployed innovative means,
such as telecalling to ensure sustainability of coverage and profitability of redistribution
stockists. This resulted in improving the reach and distribution of the products, making
brands more accessible to the shoppers. These initiatives would contribute significantly to
the aim of winning in the marketplace in the years to come.
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Your Company also undertook the initiative of expanding the number of stores compliant to
the Perfect Stores program, thereby significantly enhancing the quality of execution in the
marketplace. The Perfect Stores program has delivered business benefits in terms of faster
growth, and your Company continues to expand the reach of the program and strengthen the
benefits delivered.
Your Company believes that winning with customers is a key enabler for winning in the
marketplace and has a strong customer agenda in place to deliver high engagement levels
with the customers. To invoke and scale the entrepreneurial spirit of customers and embed it
into the ways of working, your Company launched a dedicated program to identify, fund
and rollout innovative business practices of customers. To take this program further, there
are events to provide a common forum for all customers to interact with the senior
leadership of the Company, leading to a powerful exchange of ideas and a deep
understanding of the customer at all levels in the organisation.
Your Company runs dedicated call centres for distributors as well as retailers, which enable
them to connect directly with the Company anytime, thereby achieving world class
customer service with a tremendous opportunity for getting customer insights. A mandatory
customer immersion for Customer Development team gives them the opportunity to spend
more than 50 hours with a variety of distributors and retailers, observing and interacting
with them in their milieu to understand their needs better. These various initiatives have
helped to keep the needs of the customer the guiding force for all your Company's activities.
Modern Trade, the growth channel for future, continues to be a focus area for your
Company. Continuous focus on Joint Business Planning, ensuring best in class On Shelf
Availability and delivering clutter breaking product launches, was appreciated by Modern
Trade customers. Your Company was once again awarded the 'Best Supplier' by leading
Modern Trade customers.
The year marked the first full year of operation for your Company's rural distribution
alliance with Tata Teleservices for distributing their telecom products through the extensive
distribution network of your Company. This alliance has helped in driving your Company's
rural coverage expansion by enhancing the earning potential of our channel partners,
including Shaktiammas. Your Company is now nationally distributing telecom products to
75,000 telecom outlets through 550 rural distributors.
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Your Company had set up a state of the art Customer Insight and Innovation Centre (CiiC)
last year to use insights and technology to gain a deeper understanding of shopper and
customer needs. The CiiC was set up leveraging the knowledge and learnings from Unilever
CiiC operations, set up previously in other parts of the world. Using technologies like
interactive meeting rooms, smartboard, virtual reality, retail lab, eye tracking technology
and mobile virtual reality solutions, your Company developed and executed differentiated
channel and format strategies for both traditional channels and Modern Trade. CiiC set up
by your Company is a unique centre for gathering insights, catering to both General and
Modern Trade.
Your Company continues to focus and drive Project Shakti, the initiative for driving social
responsibility and sustainability, aimed at enhancing livelihoods and building opportunities
for small scale entrepreneurs.
7. SUPPLY CHAIN
Your Company's supply chain agenda remained focused on improving performance on
service, quality and cost. This was delivered with speed and agility in a Supply Chain set
up, with the highest standards of safety and positive environmental impact.
Your Company made significant progress in its vision to deliver customer service
excellence and enable sustainable growth. The service delivery standards improved steadily
with CCFOT (Customer Case FillOnTime) increasing to 94% and Modern Trade OSA
(OnShelf Availability) touching an all time high of 96%. The customers have
acknowledged this performance and have rewarded your Company with the best supplier
recognitions. Your Company continued to strengthen the Sales and Operation Planning
process (S&OP) and Innovation Process Management
IPM) to respond with speed and agility to the volatile market demands.
Your Company delivered quality improvement across the supply chain by focusing on better
product design and implementing various quality improvement programs. This resulted in
50% reduction in consumer complaints. Levercare helpline capabilities were improved to
engage better with consumers.
Your Company has a strong supply chain savings program, which is driven by various cross
functional teams, such as R&D, Procurement, Manufacturing and Logistics. The robust
savings programs were driven through workshops, rigorous monthly reviews, project
trackers and a strong ideas' funnel.
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Your Company has started using renewable biomass as a fuel. Your Company is using
locally available agriwaste like paddy straw, cotton stalks, sawdust and rice husk as fuel.
These are helping local farming community to realise value out of material, which was
otherwise wasted and burnt in fields, causing pollution. Besides, small local industries have
come up to convert the biomass into briquettes.
Your Company continues to focus on water conservation by reducing ground water
abstraction. This is done by lowering process related consumption and reuse of treated
effluent through Reverse Osmosis and secondly recharging of ground water table through
Rain Water Harvesting, installed at all units. These initiatives, collectively, are helping to
improve availability of water for the communities around your Company's sites.
Your Company progressed well in implementing its long term manufacturing strategy, with
efficient capacity creation and introducing new technologies to support volume growth. To
achieve manufacturing excellence, your Company has embarked on the journey of World
Class Manufacturing. This is an initiative launched across Unilever and your Company is
drawing and executing learnings from the global program, which focuses on identification,
root cause analysis and elimination of non value adding activities. This will lead to further
improvement in efficiencies and cost performance. In the sites where the Company has
already introduced World Class Manufacturing Program, it has identified significant cost
reduction opportunity in production costs, which are converted into projects and monitored
closely.
There has been a 20% improvement in innovation OTIF (On Time in Full) with more than
100 innovation networks being executed during the year, touching about 60% of the product
portfolio. The focus on bigger and faster innovation and capability development has
significantly helped the Company launch innovations first time right.
The Partner to Win program, developed by Unilever globally, aims at developing Joint
Business Plans with suppliers and business partners. It has resulted in reduced lead time and
costs and improved reliability and new innovation delivery.
8. RESEARCH & DEVELOPMENT
Your Company continues to derive sustainable benefit from the strong foundation and long
tradition of Research & Development (R&D), which differentiates it from many others.
New products, processes and benefits flow from work done in various Unilever R&D
centres across the globe, as well as in the Research Centres in India. The R&D labs in
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Mumbai and Bengaluru are aligned to Unilever's global R&D. Many of the projects
executed out of these centres are of global relevance, and have a strong focus on regional
needs and the overall Developing & Emerging (D&E) world. With world class facilities and
a superior science and technology culture, your Company is able to attract the best talent to
provide a significant technology differentiation to its products and processes.
Your Company's R&D programs are focused on the development of breakthrough and
proprietary technologies with innovative consumer propositions. The R&D team of over 750
people comprises highly qualified scientists and technologists working in areas of Home &
Personal Care, Foods & Beverages and Water Purification. The R&D group also comprises
critical functional capability teams in the areas of Regulatory, Clinicals, Digital R&D,
Product & Environment Safety and Open Innovation.
During the year, your Company introduced several innovations in Soaps and Detergents
category. In Detergents category, Wheel and Rin were relaunched with enhanced and
superior performing product in mass and midtier segment, respectively. Surf Excel
launched the liquid detergent for fabric cleaning, thus initiating the creation of another sub
category of future. Comfort, the liquid fabric conditioner, continues to do well. In
Household Care, Vim liquid launched a new premium antibacterial technology offering
consumers with dual benefit of superior cleaning and assurance of hygiene in dishwashing.
Domex launched its acid based variant under the name of Domex Zero Stain with superior
claims like '7x Thicker formula'. The category also continues striving efforts to improve
health and hygiene through various market development activities across product platforms.
In Skin category, Fair & Lovely successfully defended its 5crore challenge campaign,
demonstrating its product superiority and was relaunched with a 'Best Ever' formula,
leveraging its advanced multivitamin technology. In addition, a new SPF15 vanishing cream
variant, based on breakthrough sunscreen dispersion technology developed inhouse, was
launched for the first time under Fair & Lovely brand in a revolutionary pump tube a first
at this price point in the market. Vaseline Healthy White was relaunched with a new
breakthrough multivitamin plus optics formula giving 4X instant whitening. Rexona was
also relaunched with a new winning formula, based on superior skin feel and lathering.
Oral Care witnessed the launch of Pepsodent Germicheck, superior power toothpaste with
breakthrough technology that maximises the bioavailability of Triclosan in plaque, thus
providing 130% germ attack power compared to benchmark. This product delivers a benefit
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similar to a premium product, but at an affordable price. Clinical study supporting this
technology has been published in the 'Journal of Clinical Dentistry' and an application for
grant of a patent has also been filed. In the toothbrush segment, Pepsodent Flexi Action was
relaunched with level filaments in different colours and a new variant, Pepsodent Sensitive
was introduced with tapered filaments.
In Hair Care category, the Dove hair care range was relaunched; in particular, the Intense
Repair variant was relaunched with keratin actives to provide superior damage repair and
significantly smoother hair. A new split ends rescue variant of Dove shampoo and
conditioner was launched that helped reduce split ends formation by four times. New
variants of TRESemme and Sunsilk shampoo and conditioner were launched with novel
technology to specifically address problems of frizz and shape retention. TRESemme range
was made more accessible to consumers through the launch of a lower price sachet format.
A premium variant of Clinic Plus oil was launched in the market, the product was designed
with the right combination of oils, including almond oil, to be light and nonsticky and at
the same time provides intense nourishment through rapid penetration into the scalp and hair
fibre.
In Deo category, two new variants of Axe deodorant and one new variant of Lux deodorant
were launched to widen the fragrance choice for consumers.
In Water business, your Company launched a reverse osmosis based purifier for the mass
market 'Marvella Slim RO'. Your Company also launched Pureit Ultima RO+UV, a highly
premium RO and UV based water purifier with a graphic (electronic) display of total
dissolved solids level in input and output water and superior aesthetics.
The Foods R&D team focused on achieving a significant increase of the profitability of the
Foods product portfolio in combination with a quality increase of product performance as
experienced by consumers. This was achieved by applying new technologies and selection
of superior raw materials, while maintaining cost levels as same or lower. Two key
highlights were: first, the implementation of new tomato ketchup technology under Kissan
(India being the first country within Unilever to implement this); second, the top two most
selling Knorr soups were reformulated, resulting in an increased margin and scoring
significantly superior in consumers' preference.
The year saw key strategic launches under tea brands contributing to good business growth.
Improved product and new packaging were developed for Taaza tea relaunch. A new
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masala variant 'Taaza Masala Chaska' was launched with a product containing a unique
spice mix that received very positive consumer feedback in testing. Taj Mahal tea blend was
developed to meet the consumer expectations of 'perfect balance of strength and flavour'. A
specially designed fresh green tea product was introduced under Lipton 'feel light and active'
proposition. Lipton ice tea powders were restaged in the market with new claims on being
more natural, made with real tea and real fruits. In coffee, premium single origin, freeze
dried coffee range under BRU was expanded with the launch of a new unique variant,
Guatemala. Product improvement for BRU Instant was implemented. Through R&D
initiatives, cost savings were also delivered to manage commodity inflation.
In Ice Cream category, global iconic brand Magnum was launched in a test market in
Chennai with three flavour variants Classic, Almond, and Chocolate Truffle. In the Frozen
Desserts category, several new variants were launched. These included Fruttare Apple and
Mixed Berry, Carte D'or Rajbhog and Gajar Halwa, Creamy Delights Pineapple and
Litchi and Paddle Pop Jiggly Jelly.
R&D has further contributed to the Company's sustainability agenda by enabling significant
reduction in packaging material consumption through several material efficiency initiatives.
Packaging material usage was reduced by around 115 tonnes across Beverages and Ice
Creams. Your Company's R&D is also working on novel technologies to help save
substantial amount of water.
With strong scientific expertise and the potential to deliver high value technologies, India
continues to occupy a premier position in Unilever R&D. Your Company is well placed to
meet the challenges emanating from the increased competition intensity and the
opportunities to drive faster growth on the back of a strong support from R&D as well as
brand development capabilities.
Your Company had entered into a Technical Collaboration Agreement (TCA) and a Trade
Mark License Agreement (TMLA) with Unilever. The TCA provided for payment of
royalty on net sales of specific products, manufactured with technical inputs developed by
Unilever. The TMLA provided for the payment of trademark royalty, as a percentage of net
sales on specific brands, where Unilever owns the trade mark in India. Given that the pace
of innovations and the scope of services have expanded over the years and that Unilever's
global resources are providing greater expertise, superior innovations and scale advantage
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for all Unilever entities, your Company is enjoying the benefits of an increasing stream of
new products and innovations, backed by technology and knowhow from Unilever.
Your Company is also receiving support and guidance to drive functional excellence in
marketing, supply management, media buying and IT, among others, which helps your
Company to remain competitive and further stepup its overall business performance.
Unilever is committed to ensuring that the support in terms of new products, innovations,
technologies and services is commensurate with the needs of your Company and enables it
to win in the marketplace.
The details of expenditure on scientific research and development at the Company's in
house R&D facilities eligible for a weighted deduction under Section 35(2AB) of the
Income Tax Act, 1961 for the year ended 31st March, 2014, are as follows:
Capital Expenditure : Rs. 5.64 crores
Revenue Expenditure : Rs. 31.22 crores
9. ENVIRONMENT, SAFETY, HEALTH AND ENERGY CONSERVATION
Your Company has a vision of being an 'Injury Free' and 'Zero Environment Incident'
organisation. The Compass, your Company's strategic framework, integrates Safety as a
nonnegotiable value. Over the past many years, your Company has been progressing well
in terms of reducing injury frequency rates and has improved the safety record in factories
and facilities.
The Company has developed safer systems and procedures for work by implementing Core
Design principles (e.g. in projects, in facilities design, in process safety, etc.) rolling out up
todate engineering standards and investing in hardware and safety infrastructure across
sites.
Your Company also recognises that design and procedures are effective only when people
choose to maintain and follow them. To achieve this objective, a behavioural safety program
BeSafE is being rigorously deployed across the Company. This program is at the core of
your Company's safety journey and has been created as a customised behavioural safety
framework for Unilever, building upon the earlier DuPont model, which your Company had
pioneered a decade ago in India. The safety incident rate measured as total recordable
frequency rate (TRFR) was 66% of 2008 baseline.
Your Company actively promotes safety beyond the workplace through extensive 'Safe
Travel' and 'Beyond Work Safety' initiatives, involving the employees' families across all
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sites. Several prestigious awards have been conferred upon your Company by national and
international organisations of repute, both from government and nongovernment sectors in
recognition of your Company's efforts in the sphere of Safety.
From sourcing to manufacturing or logistics, sustainability is embedded across all
operations of your Company. The Company's environmental footprint is being monitored
closely for all aspects of the manufacturing process. Benchmarking is done for resources
consumed (like water, energy) and gaseous, liquid and solid emissions (like carbon dioxide,
sulfur oxides, COD, solid waste). Your Company has worked on the following key areas:
Fossil fuels are being replaced by biogenic fuels, wherever available, through investment
in biomass fired boilers, hot air generators and thermic fluid heaters. This has reduced
furnace oil, diesel and coal usage in units.
The biogenic fuels also includes the use of plant waste / byproducts like spent tea leaves
and coffee beans as fuel. This enables disposal cost savings besides reducing fossil fuel
usage.
Tieups with potential suppliers of renewable sources of energy are being explored.
Latest generation, energy efficient technology, like auto sensors, solar powered systems,
LED lamps, high efficiency motors, inverter drives, screw compressors are being used.
Rain Water Harvesting is in place at all manufacturing sites and the Company is now
installing Rain Water Reuse facilities in several sites to further reduce water usage.
Your Company has reduced CO2 emissions (per tonne of production) in India by 27%
approximately, when compared to 2008 baseline. The use of renewable energy has increased
to over 20% of the total consumption. Water consumption in manufacturing operations is
reduced by over 37%, when compared to 2008 baseline.
Waste generation is minimised through the application of reduce, reuse and recycle
principles across units. Recyclable waste, such as packaging material, empty raw material
containers, spent lubricants, batteries, ewaste, project scrap, etc. are systematically
segregated and recycled/ reused. Simple but effective facilities like installation of high
pressure water jet setup for washing of empty chemicals drums ensure full recovery of
material besides safe recycle. Over 99% of total waste is recycled in environment friendly
ways. Total waste per tonne from manufacturing sites has reduced by 84% visavis 2008
baseline.
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The information required under Section 217(1)(e) of the Companies Act, 1956, read with
the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules,
1988 with respect to energy conservation is appended hereto and forms a part of this Report.
10. HUMAN RESOURCES
Your Company's Human Resource agenda for the year was focused on strengthening four
key areas: building a robust and diverse talent pipeline, enhancing individual and
organisational capabilities for future readiness, driving greater employee engagement and
strengthening employee relations further through progressive people practices at the
shopfloor.
Your Company is widely acclaimed for its people development practices and has reinforced
its position in this area. This, coupled with the ability to attract best talent, provides a
competitive edge to the organisation. According to the Campus Track Business School
Survey 2013, conducted by Nielsen, your Company has been chosen as the preferred
employer across all sectors for the 2014 graduating batch of BSchool students. Your
Company has also retained its position as the Dream Employer with students
Diversity and Inclusion is an important aspect of sustainable the last three years, there has
been considerable momentum on this aspect through better appreciation of the business case
and greater leadership involvement and engagement. Tools and capabilities like day care,
technology that supports agile working, flexible work arrangements through part time
working and career by choice program and inclusiveness workshops have been embedded to
enable and drive the Winning Balance. During the year, a Winning Balance Council was
also established in the Company, comprising male and female leaders across functions, who
champion and lead the plans. Your Company recognises men and women role models, who
create a simple, respectful and flexible work environment for their teams, which inspires
others to emulate them. With these enablers and focused plans, your Company has
witnessed a 10% shift in the gender balance ratio over the last three years.
The Talent and Organisation Assessment was undertaken successfully in 2013 and key
business charters based on findings have been institutionalised. These charters are owned by
your Company's leadership team and will take off during 2014. These interventions will
allow your Company to have a robust people plan to guide your Company not just for
immediate performance, but to also ensure that the Company is future ready.
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In addition to building core capabilities in marketing, sales and distribution, your Company
is investing in the areas of beauty, foods, rural, digital, ecommerce, customer/ shopper
marketing and market development, to win in the future. Your Company has developed
comprehensive plans in each of these key areas that are customised to suit the present and
future business needs. Besides, your Company has also identified three key behaviours,
Growth Mindset, Bias for Action and Consumer and Customer Centricity that will
supplement the capabilities to achieve business goals. To drive Bias for Action, your
Company has been driving a change in the way it makes decisions by (i) Generating
insights, where attention is required
(ii) Getting the right leadership attention to road blocks and
(iii) Facilitating faster decision making. Project Sunset is an online platform for speedy
resolutions of road blocks within the Company. Your Company also launched 'Sunset
Talks', a two weeks intensive idea generation campaign on simplification that received
overwhelming employee participation and response. To drive Consumer and Customer
Centricity, your Company has undertaken multiple initiatives to regularly communicate with
and reach out to its consumers and has a well defined program to capture consumer insights.
Your Company undertook intensive training programs through a combination of faceto
face and virtual learning approaches. Over 28,000 mandays invested in classroom training
and about 38,000 elearning registrations, indicate that the spirit of 'learn where you are' is
imbibed in employees of the Company. Your Company is also investing in building
capabilities in digital and social media to find new platforms for brands to engage more
effectively with Indian consumers.
The Global People Survey is a part of the Unilever employee insight program, which aims
to give voice to the Company's people and provides a vehicle to make their views heard.
The Survey also provides regular, meaningful and actionable feedback to the leaders in the
organisation. It has questions spread across several dimensions in the areas, such as
Strategic Leadership, Immediate Boss Effectiveness and Engagement. Feedback from this
survey forms the basis of holistic engagement plans, which are reviewed regularly. As per
the Global People Pulse Survey 2013, engagement in your Company has witnessed a 3%
improvement over the last year. There has been recognition of your Company's People
Management and Reward and Recognition practices, which are geared towards building a
performance focused culture.
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Your Company has been investing in progressive employee relations practices to build
capability at the grassroot level. 'Sparkle' is a centrally hosted intranet based tool that
supports skill mapping, skill assessment, performance assessment, gap analysis and enables
training plan identification, which is customised according to the priority areas of each
workman. Sparkle has been a pioneering tool in the area of workmen capability
development that promotes higher transparency and focused training intervention linked to
individual and business needs. The tool has delivered results for over three years, and your
Company has successfully completed appraisals, thereby identifying top performers and
completing skill gap analysis of over 10,000 workmen online. Sparkle has been recognised
as a best practice and adopted for a global rollout. Business Linked Engagement and TPM
Edge programs continued with full focus and rigour during the year and delivered
significant improvement in factory operations.
Information as per Section 217 (2A) of the Companies Act, 1956, read with the Companies
(Particulars of Employees) Rules, 1975, forms part of this Report. However, as per the
provisions of Section 219(1)(b)(iv) of the Act, the Report and Accounts are being sent
excluding the statement containing the particulars to be provided under Section 217(2A) of
the Act. Any Member interested in obtaining such particulars may inspect the same at the
Company's Registered Office or write to the Company Secretary for a copy thereof.
11. INFORMATION TECHNOLOGY (IT)
Your Company continues to invest in IT, leveraging it as a source of competitive advantage.
The enterprise wide SAP platform, the backbone of IT, encompasses all core business
processes in your Company. It also provides a comprehensive data warehouse with
analytical capability that facilitates better and faster decisions. Your Company has leveraged
the SAP platform to aid business priorities and improve efficiencies both within the
Company as well as by collaborating with suppliers and customers. Your Company is also
using latest technology offerings like inmemory computing to significantly improve
process efficiencies and unlock time of employees.
Your Company has institutionalised an extensive IT capability for Customer Development
function to support frontend execution. All distributors run a standard distributor
management system. The sales representatives and field based sales personnel have been
equipped with mobility devices for effective and efficient onground execution. The
available data is mined using analytical tools to fine tune the selling process at each and
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every outlet. This capability, which has been used for the urban markets has also been
extended to rural markets. The existing technology backbone was leveraged to provide for a
low cost mobile phone based solution that significantly saved distribution costs.
Your Company is investing in capabilities that will help reach out and engage with end
consumers, using low cost mobile technology. These capabilities will not only increase the
number of consumers that can be reached, especially in rural areas, but also dramatically
change the way in which your Company engages with them in a personalised manner using
mobile telephony as a medium. Capabilities that have been built in this area will help your
Company learn more about the end users across multiple brands as well as communicate
with them directly about customised offers.
IT tools and solutions are being used across the organisation to make employees more
productive and efficient. Employees have been equipped with personal computing tools and
technologies that allow them to communicate and collaborate more efficiently and in a more
agile manner.
Your Company continues to invest in IT infrastructure to support business applications and
has leveraged India's expanded telecom footprint to provide high bandwidth terrestrial links
to all operating units. Your Company also uses software as a service to provide agile and
cost effective IT capabilities in select areas.
As the IT systems and related processes get embedded in the ways of working of the
organisation, there is a continuous focus on IT security and reliable disaster recovery
management processes to ensure all critical systems are always available. These are
periodically reviewed, upgraded and tested for efficacy, adequacy, security and reliability
12. FINANCE AND ACCOUNTS

Your Company continued to focus on cash generation. The focus on managing optimal
levels of inventory, sound business performance, operating efficiencies and cost savings
across the organisation helped generate healthy cash flows. Your Company managed
investments prudently by deploying cash surplus in a balanced portfolio defined to offer
primacy to safety and liquidity of the investments.
The finance function of the Company took a significant step forward by consolidating the
work done on Finance Transformation last year to further build capabilities and to get the
business future ready. Your Company's success depends upon being able to decouple
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transaction volume growth from business growth and thereby reduce the cost, complexity
and time of transaction processing. The key building blocks to the transformation program
were Procure to Pay, Zero Based Controls, Record to Report Transformation and My
Business Information Projects.
Procure to Pay project aimed to move the needle on services to suppliers from vendor
satisfaction to vendor delight. This year, your Company standardised and centralised invoice
processing, query management and payments processing from more than 40 locations to one
payment excellence centre, thereby delighting business partners. The program also delivers
a capability to steer continuous improvement programs from the global centre of excellence
in Bengaluru, thereby landing a six sigma level efficiency in transactional processes.
Zero Based Controls project completely revamped the traditional control monitoring
methods to a cutting edge automated cockpit flagging exceptions to the control
environment. This enables exception based monitoring, while tightening the cost of control.
This year, your Company standardised the financial controls across geographies, leveraged
technology to automate more than half of the key controls and set up a leading edge
monitoring and reporting capability in Bengaluru. This now enables a focused review of the
risk areas and a constructive effort to remediate the exceptions, if any Record to Report
Transformation project aims at creating one financial reporting excellence centre at
Bengaluru. Your Company has already taken the first step in this journey. Your Company is
confident of making significant progress in the times to come, thereby future proofing the
organisation. This project will enable faster reporting and accelerate results release to the
market.
My Business Information initiative is a stepping stone to the next generation information
analytics. This goes with the principle of converting data into information and information
into insights seamlessly, at a click, to expedite business decision making. This year, your
Company took a giant leap of moving from a multitude of ad hoc reports at multiple places
to one centralised information repository, thereby ensuring one version of a report. In
parallel, your Company achieved standardisation of reports and over 90% reduction in the
number of reports. This means fewer and better quality reports and more time released for
investment on value added analysis. Such information onthego makes business partnering
more effective, simpler and a richer role for finance, while providing relevant information
for speedy business decision making.
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Your Company continued with various simplification initiatives commenced last year by
disproportionately investing in IT. This has resulted in release of time occupied by non
value adding tasks while giving significant savings in audit efforts.
While driving the transformation agenda, your Company's finance team also continued to
focus on delivering excellence on Financial Accounting and Reporting. This year, your
Company won the esteemed 'Silver Shield' from the Institute of Chartered Accountants of
India for excellence in financial reporting for the Annual Report 201213. Your Company is
committed to increase the efficiency and effectiveness of the finance function in general and
core areas of accounting, reporting and controls in particular. This appreciation further
strengthens the resolve to raise the bar and set higher standards of excellence, transparency
and ease in reporting.
Capital Expenditure during the year was at Rs. 526.50 crores (Rs. 409.34 crores in the
previous year).
During the year, your Company has not accepted any fixed deposits and there was no
outstanding towards unclaimed deposit payable to depositors as on 31st March, 2014. In
terms of the provisions of Investor Education and Protection Fund (Awareness and
Protection of Investors) Rules, 2001, Rs. 3.57 crores of unpaid / unclaimed dividends were
transferred during the year to the Investor Education and Protection Fund.
Segmentwise Results
Your Company has identified five business segments, in line with the Accounting Standard
on Segment Reporting (AS17), which comprise: (i) Soaps and Detergents, (ii) Personal
Products, (iii) Beverages, (iv) Packaged Foods, including Culinary, Branded Staples, Frozen
Dessert and Ice Cream and (v) Others, including Exports, Chemicals, Water Business, Infant
Care Products, etc. The audited financial results of these segments are provided as a part of
financial statements.
13. LEGAL, COMPLIANCE AND BRAND PROTECTION

Your Company continued to focus on the key areas and projects within the legal and
compliance functions, which include transiting to a workflow based compliance software
tool 'SelfCompli'. This tool enables compliances to be made and tracked by factories and
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offices of your Company across the country. In the area of Brand Protection, during the
year, your Company has taken significant actions against counterfeits, fakes and other forms
of unfair competition, under the Company's program of Combating Unfair Competition. The
focus on litigation management continued this year with significant number of disposal of
litigation recorded, as in past years, and fewer litigations added during the year.
14. MERGERS, ACQUISITIONS, JOINT VENTURES AND DISPOSALS
Consequent to the approval of shareholders in the year 2007, theCompany has transferred
Marine Exports business to M/s. Gadre Marine Exports Private Limited, as a going concern,
pursuant to a Business Purchase Agreement entered between the parties in July 2013.
15. OPEN OFFER

On 30th April, 2013, Unilever PLC as Acquirer along with Unilever NV as person acting in
concert made an announcement for Open Offer for acquiring 48.70 crore shares, aggregating
to 22.52% of the total Share Capital of the Company, from the public shareholders at the
offer price of Rs. 600 per share.
In accordance with the requirements of SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011, a Committee of Independent Directors was constituted by the
Board, comprising all Independent Directors of the Company, for providing reasoned
recommendation on the Open Offer to the shareholders of the Company. The Independent
Directors Committee made its recommendation to the shareholders on 18th June, 2013 and
the same was published in the newspapers in accordance with requirements of the
regulations.
The tendering period of the Open Offer was from 21st June, 2013 to 4th July, 2013. At the
end of the tendering period, Unilever acquired additional 31,95,63,398 shares in the Open
Offer, thereby increasing the shareholding in the Company from 52.48% to 67.25% of the
total Share Capital of the Company
16. SUSTAINABLE LIVING

Sustainability is at the core of your Company's way of doing business. It guides your
Company on the path to achieve long term success in a world where the battle for resources
is escalating. In this direction, Unilever globally has set out the 'Unilever Sustainable Living
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Plan' (USLP), which embeds sustainability in its business model. The USLP sets out to
decouple growth from environmental impact, while enhancing positive social impact.
USLP has three big global goals to achieve:
Improving Health and Wellbeing By 2020 we will help more than a billion people take
action to improve their health and wellbeing.
Reducing Environmental Impact By 2020 our goal is to halve the environmental
footprint of the making and use of our products as we grow our business.
Enhancing Livelihoods By 2020 we will enhance the livelihoods of millions of people as
we grow our business.
The Plan is distinctive:
It spans the entire portfolio of brands and all countries in which Unilever sells its products.
It has a social and economic dimension your Company's products make a difference to
health and wellbeing and its business supports the livelihoods of many people.
When it comes to the environment, your Company works across the entire value chain
from the sourcing of raw materials to the delivery of products to the consumers.
In the third year of the Plan, your Company made steady progress to achieve the big goals.
Your Company also involved consumers this year to become a part of the USLP community
through Project Sunlightwww.projectsunlight.co.in
<http://www.projectsunlight.co.in> launched globally.
In the area of health and hygiene, your Company reached 58 million people through
Lifebuoy Handwashing Program since 2010. In area of sanitation, your Company launched
Domex Toilet Academy program with an aim to eradicate open defecation by building
toilets and improving sanitation facilities. The academy made Junapani, a village in Wardha
district in Maharashtra, free of open defecation by setting up 80 toilets by the end of 2013.
Your Company made a good progress in its journey to provide safe drinking water through
Pureit water purifier. Nearly, 57.5 million lives were protected by Pureit globally by the end
of 2013.
In the area of nutrition and health, your Company made a good progress on lowering the
levels of salt, trans fat and calories in its portfolio. In 2013, 70% of your Company's Foods
portfolio (by volume) was compliant to 5 gm salt per day target. Currently, all the Kissan
ketchup variants and Knorr soups meet the interim target of 6 gm salt per day.
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In the area of environmental impact, CO2 emissions per tonne of production reduced by
27% in 2013 compared to the 2008 baseline. Water usage per tonne in your Company's
manufacturing operations reduced by 37% compared to the 2008 baseline. In 2013, of the
total 38 sites, 33 sites became zerodischarge sites, an addition of three sites compared to
that of last year. Reduction in total waste per tonne from our manufacturing sites was more
than 84% over 2008 baseline. More than 99% of total waste was recycled in environment
friendly ways.
Under sustainable sourcing, your Company continued to work with suppliers, local
government and farmers to sustainably source agricultural raw materials. A total of 86 tea
estates in Assam, Darjeeling and Tamil Nadu were certified 'Sustainable Estates' by the
Rainforest Alliance by the end of 2013. Your Company made good progress on
sustainable sourcing of fruits and vegetables and sourced 80% of tomatoes used in Kissan
Ketchup from sustainable sources in India. 100% of palm oil volumes procured for India
was covered by 'Green Palm' certificates.
The water conservation initiatives of Hindustan Unilever Foundation (HUF) resulted in the
creation of collective and cumulative water potential of more than 24 billion litres. More
than 95,000 mandays of labour was created directly due to HUF projects and agriculture
production enhanced by more than 3,500 tonnes.
Project Shakti, your Company's initiative which aims to empower underprivileged women in
rural areas has further increased livelihood opportunities for over 17,000 new Shakti
Entrepreneurs (Shaktiammas) appointed during the year. Your Company now has 65,000
Shakti Entrepreneurs complemented by over 50,000 Shaktimaans, the male members of
Shaktiamma's family. Your Company continues to empower Shaktiammas, while increasing
their family household income. Your Company provided training on basic accounting,
selling skills, health & hygiene and relevant IT skills to Shakti Entrepreneurs and equipped
them with smartphones which have been enabled with a mini Enterprise Resource Package
(ERP). The application provides updates on promotions, offers and facilitates selling to the
small retailers, using relevant business insights. These insights help retailers to stock in their
outlets suitable products. The initiative has helped Shaktiammas to take and bill orders,
manage inventory and drive better distribution efficiencies in driving their business. These
Shakti Entrepreneurs cover over 160,000 villages in 16 states and serve over 4 million
households.
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In 2013, your Company launched 'Prabhat' (Dawn) a USLP linked program, which is a
part of its long term effort to engage with and contribute to the development of local
communities around its manufacturing sites. Prabhat focuses on health and hygiene,
livelihoods and water conservation initiatives, which are fully aligned to the USLP
priorities. Prabhat was launched in nine manufacturing locations across India Haridwar,
Pondicherry, Silvassa, Khamgaon, Goa, Nasik, Orai, Chhindwara and Etah.
As evident from the above initiatives, your Company's progress to deliver on USLP has
been consistent. In 2013, Unilever undertook an indepth review with every product
category and business function and identified actions that will help drive sustainable growth.
This year, your Company has expanded Enhancing Livelihoods to cover three big themes
under the pillar Fairness in the Workplace, Enhancing Women's Lives and Inclusive
Business.
Your Company has shared its progress on Unilever Sustainable Living Plan in India which
is made available on the website of the Company, www.hul.co.in . Your Company has also
released the Business Responsibility Report that describes the initiatives undertaken in line
with the key principles enunciated in the 'National Voluntary Guidelines on Social,
Environmental and Economic Responsibilities of Business' framed by the Ministry of
Corporate Affairs. The report is made available on your Company's website, www.hul.co.in
<http://www.hul.co.in>, and forms a part of this Annual Report. The Business
Responsibility Report shall be kept open for inspection at the Registered Office of the
Company. If a Member is interested in obtaining a hard copy of the Business Responsibility
Report, they may write to the Investor Service Department at the Registered Office of the
Company.
20. SUBSIDIARY COMPANIES
A statement pursuant to Section 212 of the Companies Act, 1956,relating to Subsidiary

Companies, is attached to the Accounts. In terms of General Exemption, under Section
212(8) of the Companies Act, 1956, granted by Ministry of Corporate Affairs vide its
circular no. 02/2011 dated 8th February, 2011, and in compliance with the conditions
enlisted therein, the Audited Statement of Accounts, Auditors' Reports thereon and the
Reports of the Board of Directors of the Company's subsidiaries for the financial year ended
163
31st March, 2014, have not been annexed. The Annual Accounts and related documents of
the Subsidiary Companies shall be kept open for inspection at the Registered Office of the
Company. The Company will also make available these documents upon request by any
Member of the Company interested in obtaining the same. However, as directed by the said
circular, the financial data of the subsidiaries have been furnished under 'Subsidiary
Companies Particulars' forming part of this Annual Report (refer page no. 164). Further,
pursuant to Accounting Standard (AS21) issued by the Institute of Chartered Accountants
of India, Consolidated Financial Statements presented by the Company in this Annual
Report include the financial information of its subsidiaries.
INDEPENDENT AUDITORS' REPORT

to the Members of Hindustan Unilever Limited
REPORT ON THE FINANCIAL STATEMENTS
1. We have audited the accompanying financial statements of Hindustan Unilever Limited
(the "Company"), which comprise the Balance Sheet as at March 31, 2014, and the
Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory information, which we
have signed under reference to this report.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
2. The Company's Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the Accounting Standards notified under 'the
Companies Act, 1956' of India (the "Act") read with the General Circular 15/ 2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
AUDITORS' RESPONSIBILITY
3. Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing and other
164
applicable authoritative pronouncements issued by the Institute of Chartered Accountants of

India. Those Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence, about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the Company's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
OPINION
6. In our opinion, and to the best of our information and according to the explanations given
to us, the accompanying financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,
2014;
(b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that
date; and
(c) i n the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
7. As required by 'the Companies (Auditor's Report) Order, 2003', as amended by 'the
Companies (Auditor's Report) (Amendment) Order, 2004', issued by the Central
Government of India in terms of subsection (4A) of section 227 of the Act (hereinafter
referred to as the "Order"), and on the basis of such checks of the books and records of the
165
Company as we considered appropriate and according to the information and explanations

given to us, we give in the Annexure a statement on the matters specified in paragraphs 4
and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which, to the best of our
knowledge and belief, were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by
this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this report comply with the Accounting Standards notified under the
Act read with the General Circular 15/ 2013 dated September 13, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
(e) On the basis of written representations received from the directors as on March 31, 2014,
and taken on record by the Board of Directors, none of the directors is disqualified as on
March 31, 2014, from being appointed as a director in terms of clause (g) of subsection (1)
of section 274 of the Act.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 7 of the Auditors' Report of even date to the members of Hindustan
Unilever Limited on the financial statements as of and for the year ended March 31, 2014
1. ( a) The Company is maintaining proper records showing full particulars, including
quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased
program designed to cover all the items over a period of two years which, in our opinion, is
reasonable having regard to the size of the Company and the nature of its assets. Pursuant to
the program, a portion of the fixed assets has been physically verified by the Management
during the year and no material discrepancies have been noticed on such verification.
(c) I n our opinion, and according to the information and explanations given to us, a
substantial part of fixed assets has not been disposed off by the Company during the year.
2. (a) The inventory (excluding stocks with third parties) has been physically verified by the
Management during the year. In respect of inventory lying with third parties, these have
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substantially been confirmed by them. In our opinion, the frequency of verification is

reasonable.
(b) In our opinion, the procedures of physical verification of inventory followed by the
Management are reasonable and adequate in relation to the size of the Company and the
nature of its business.
(c) On the basis of our examination of the inventory records, in our opinion, the Company is
maintaining proper records of inventory. The discrepancies noticed on physical verification
of inventory as compared to book records were not material.
3. The Company has neither granted nor taken any loans, secured or unsecured, to/ from
companies, firms or other parties covered in the register maintained under section 301 of the
Act. Therefore, the provisions of Clause 4(iii)[(b), (c), (d), (f) and (g)] of the said Order are
not applicable to the Company.
4. In our opinion, and according to the information and explanations given to us, there is an
adequate internal control system commensurate with the size of the Company and the nature
of its business for the purchase of inventory and fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and records of the Company,
and according to the information and explanations given to us, we have neither come across,
nor have been informed of, any continuing failure to correct major weaknesses in the
aforesaid internal control system.
5. (a) According to the information and explanations given o us, we are of the opinion that
the particulars of all contracts or arrangements that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion, and according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements and exceeding the value
of Rupees Five Lakhs in respect of any party during the year have been made at prices
which are reasonable having regard to the prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within the meaning of
sections 58A and 58AA of the Act and the rules framed there under.
7. I n our opinion, the Company has an internal audit system commensurate with its size and
the nature of its business.
8. We have broadly reviewed the books of account maintained by the Company in respect of
products where, pursuant to the rules made by the Central Government of India, the
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maintenance of cost records has been prescribed under clause (d) of subsection (1) of
section 209 of the Act, and are of the opinion that, prima facie, the prescribed accounts and
records have been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are accurate or complete.
9. (a) According to the information and explanations given to us and the records of the
Company examined by us, in our opinion, the Company is generally regular in depositing
undisputed statutory dues in respect of provident fund, employees' state insurance, sales tax,
service tax, customs duty, excise duty and tax deducted at source, and is regular in
depositing undisputed statutory dues, including investor education and protection fund,
income tax, wealth tax, and other material statutory dues, as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us and the records of the
Company examined by us, there are no dues of wealth tax which have not been deposited on
account of any dispute. The particulars of dues of income tax, sales tax, service tax, customs
duty and excise duty as at March 31, 2014 which have not been deposited on account of a
dispute, are as follows:
10. The Company has no accumulated losses as at the end of the financial year and it has not
incurred any cash losses in the financial year ended on that date or in the immediately
preceding financial year.
11. As the Company does not have any borrowings from any financial institution or bank
nor has it issued any debentures as at the balance sheet date, the provisions of Clause 4(xi)
of the Order are not applicable to the Company.
12. The Company has not granted any loans and advances on the basis of security by way of
pledge of shares, debentures and other securities. Therefore, the provisions of Clause 4(xii)
of the Order are not applicable to the Company.
13. As the provisions of any special statute applicable to chit fund/ nidhi/ mutual benefit
fund/ societies are not applicable to the Company, the provisions of Clause 4(xiii) of the
Order are not applicable to the Company.
14. I n our opinion, the Company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, the provisions of Clause 4(xiv) of the Order are not
applicable to the Company.
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15. In our opinion, and according to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from banks or financial
institutions during the year. Accordingly, the provisions of Clause 4(xv) of the Order are not
applicable to the Company.
16. The Company has not raised any term loans. Accordingly, the provisions of Clause
4(xvi) of the Order are not applicable to the Company.
17. The Company has not raised any loans on short term basis. Accordingly, the provisions
of Clause 4(xvii) of the Order are not applicable to the Company.
18. The Company has not made any preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the Act during the year.
Accordingly, the provisions of Clause 4(xviii) of the Order are not applicable to the
Company.
19. The Company has not issued any debentures during the year and does not have any
debentures outstanding as at the beginning of the year and at the year end. Accordingly, the
provisions of Clause 4(xix) of the Order are not applicable to the Company.
20. The Company has not raised any money by public issues during the year. Accordingly,
the provisions of Clause 4(xx) of the Order are not applicable to the Company.
21. During the course of our examination of the books and records of the Company, carried
out in accordance with the generally accepted auditing practices in India, and according to
the information and explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the year, nor have we been
informed of any such case by the Management.
For Lovelock & Lewes
Firm Registration Number: 301056E
Chartered Accountants
Pradip Kanakia
Partner
Membership Number: 39985
Mumbai: April 28, 2014
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6. PATIDAR AGRO & FOOD PRODUCTS
Established in the year 2009, Patidar Agro & Food Products is involved in processing
and supply of Pulps, Pickles and Chutneys. These products have a huge demand and most of
these products are part of daily meal. Adding taste to the food, the spicy and juicy pickles
provide variety to our daily cuisines
Patidar Agro & Food Products are Located in Ahmedabad, with state of the art
infrastructure of processing and packaging unit. Our team are highly experienced and
trained in every aspect of processing and packaging. We follow stringent quality parameter
as to provide customer quality and hygiene product and our team are dedicated for this
endeavor. Our products are available in most of the retail chains and malls in and around
ahmedabad. Patidar Agro & Foods Product is committed for on time delivery of orders.
"Mr. DINESH PATEL & Mr. ASHOK PATEL" have established the firm. They have
sound Knowledge of products, marketing, processes etc and have been a source of
inspiration in every sphere of business. Under their guidance we have gained huge market
share and recognition in very short time.
Our products have a huge demand and most of these products are part of daily meal. Adding
taste to the food, the spicy and juicy pickles provide variety to our daily cuisines. All major
international brands, involved in the manufacturing beverages, soft drinks, health drinks,
jams, jellies, sauces etc uses our products especially mango and tamarind pulps, mango
pickle, chutney etc.
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Product Portfolio
Patidar Agro & Food Products are involved in processing and supply of premium range of
Pulps, Pickles and Chutneys. Our products has to undergo stringent quality testing
procedure before they are dispatched as to retain the original flavor and aroma till the time
their seal are broken for consumption. We follow latest food processing techniques for our
products, which eventually outlasts their "best before date" and hence have longer shelf life
while retaining original and rich flavor, pure and irresistible taste.
Our Team:
For any organization to succeed and to provide quality and best of the best products to its
client, it requires dynamic, competent, dedicated, highly trained and experienced
team. Patidar Agro & Food Products is backed by such efficient and dynamic team which
is able to cater distinct needs of our client. We have more than 50+ employees in our
organization, who are very well versed with latest technologies and methodologies of
processing as in turn to make high end products. Our team of professional and dedicated
people make constant endeavor to provide customize product and work in tandem with
client as to fulfill all their demands and requirement.
Our expert and professional team are:

1. Technicians
2. Engineers
3. Quality Auditors
4. R&D Experts
5. Warehousing & Packaging Experts
6. Skilled Laborers
Infrastructure:
Our production unit is based in Ahmedabad with State of the art infrastructure, which is the
core requirement of the hour in processing industry. Dedicated to provide quality, hygienic
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and affordable product to the customer we are regularly modernizing our production unit
with new technology, whether be it in raw material selection, processing techniques, quality
check, storing, packaging etc. To support our state of the art infrastructure, we have highly
qualified, trained and experience staff, which regularly make audits of our units and goes
under training for any other advancement in training.
Customization:
We have adopted a flexible approach towards our manufacturing process, as to cater and
understand client requirement. Customization is our special quality which helps us in
catering to the individual requirements of our clients by offering a wide variety of chutneys
and pickles etc. All the leading caterers who serves in different industry vertical such as
airlines, railways, tours and travel operators, event organizers, offices, hotels and restaurant
etc. are our clients and we serve them as per their customize need and requirement. We also
offer our products to other major international brands involved in production of beverages,
soft drinks, health drinks, sauces, jams, jellies etc.
Our Product Range is:
1. SWEET LIME PICKLE

2. KETCH UP
3. RED CHILLI
4. MIX PICKLE
5. MANGO PULP
6. FROZEN MANGO MILK SHAKE
7. LIME PICKLE.
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Product
SWEET LIME PICKLE
we are manufacturer and Supplier of sweet lime Pickle.The raw materials used are highly
checked and we ensure the good taste and flavor of the products.Clients can avail from us
sweet lime pickles that has a savory taste. We use premium quality lime for the processing
of these pickles that are extremely spicy and our products are also cost effective.
Ketch up
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Supplier & Manufacturer of Ketchup & Tomato Ketchup. Our product range also comprises
of Mango.
RED CHILLI
Pickling in oil is an old Indian tradition of food processing and storage. Indian pickles
consist of a large variety of pickled fruits and vegetables that are marinated in oil or lemon
juice, different Indian spices and salt. The preparation methods and flavors of these pickles
differ from region to region. In the southern states, sesame oil is preferred, while mustard oil
is preferred in northern states for making pickles. Turmeric (haldi) used in preparation of
most of these pickles is known for its medicinal properties.
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MIX PICKLE
we are manufacturer and Supplier of mix Pickle.The raw materials used are highly checked
and we ensure the good taste and flavor of the products.Clients can avail from us mix
pickles that has a savory taste. We use premium quality raw material for the processing of
these pickles that are extremely spicy and our products are also cost effective.
MANGO PULP
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We are leading processor and supplier of Mango Pulp. Our premium range of products are
known for their longer shelf life, rich flavors, purity and irresistible taste.
Frozen Mango Milk Shake
Supplier & Manufacturer of Frozen Mango Milk Shake & Mango Milk Shake. Our product
range also comprises of Mango Pulp, Kesar Mango Pulp and Indian Pickle.
LIME PICKLE.
We are leading processor and supplier ofLime Pickle. Our premium range of products are
known for their longer shelf life, rich flavors, purity and irresistible taste.
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7. KILBAN FOODS (INDIA) PVT.LTD
KILBAN FOODS (INDIA) PVT.LTD. is a reputed food product manufacturing

company based in Calicut. "HAPPY" is the flagship brand of Kilban Foods and has
conquered the minds of the young and the old alike. Today "HAPPY" has become a
household name as its flavour pervades everywhere. The "HAPPY" Brand
includes Fruit Squashes, Syrups, Crushes, Soft Drink Concentrates, Fruit Jams,
Sauces, Pickles, Vinegar and RTS Beverages.
Behind this amazing success lies a story of hard work and a passion to achieve the goals
and ambitions of two brothers Mr. M. KHALID & Mr. M. BASHEER.
Golden Memories
Kilban Foods was established in 1978 by Mr. M. KHALID & Mr. M. BASHEER.
They hired out a small unit in Calicut, Kerala. and started manufacturing
pickles, Synthetic Vinegar and Synthetic syrup employing 3 persons. Later in
1980, they established own unit in rented premises in Calicut and the product were
sold under the brand name VARIETY. In the year 1982 the brand name was
changed to SABARI which became very popular with an added range of products
like differentpickles and syrups. At that time Marketing was being done in
the Malabar region only.
In the meanwhile there was a rising demand for squashes and Jams in the market
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and production had to be increased. A land in Poovattuparamba, around 15 Km

from Calicut city was purchased and a factory constructed in 1985. Simultaneously,
the market was also expanded to other geographical areas and it was during that
time Kilban Foods introducedRTS Beverages in 3 flavours, i.e Mango, Pineapple
& Grape.
In 1987 a new brand HAPPY was launched and we started marketing squashes,
Jams, Pickles, Soft Drink concentrates, Vinegar etc under this brand in Kerala.
Since the production capacity was inadequate one more unit was started in 1995 with
a fully automated manufacturing facility. During that period the packing of certain
liquid products likeSquashes, Syrup, Soft Drink concentrates etc was changed
from Glass bottles to PET bottles.
In 2001, we started our own PET Bottles manufacturing unit in the name
of GRAND POLYPET. During 2001-2002 a Mechanical Engineering unit in the
name of KILBAN MECHANICAL ENGINEERING CO was also formed for
developing food processing machinery for own use. Our R & D dept has developed
fully automatic machines with PLC Control for filling of Jams in Glass bottles and
containers.
HAPPY has become the brand of choice for customers when it comes to
exceptional genuine products. All HAPPY products are hygienically prepared as
we believe that from hygiene comes purity and from purity come the taste. Incoming
Raw material, Packing material, Quality control checking, online checking of
production and finished goods final Quality check is done for each batch sizes and
samples are kept to identify any variations of quality in the later stage. Our full
fledged Laboratory carries out analysis of all food products at all stages.
Our Managing Director Mr. M. Khalid has won the Best Entrepreneur Award
instituted by the Department of Industries, Kerala State Level and District Level in
the year 2000-2001.
Kilban Foods has now started exports to different countries. Our Happy brand are
178
well-known for superior quality, taste and at a reasonable prices and are available
throught Keralaas well as in the Gulf Countries. We are planning to launch
additional range of products and are also planning to expand the market to a national
level in a short span of time.
PRODUCTS OF KILBAN FOODS (INDIA) PVT.LTD
FRUIT SQUASHES
Orange Fruit Squash

Mango Fruit Squash
Packed in 700ml & 350ml PET bottles with plastic closures.
Packing
12 x 700ml bottles in a carton (size of carton
L 28.5 cm x B -22 cm x H 26
cm)
Net Weight - 10.65 Kg Gross weight 11 kg
24 x 350ml bottles in a carton(Size of carton L- 34 cm x B 24.5 Cm x H 20.5 Cm)
Net Weight 10.38 Kg Gross weight -11.30 kg
General description
Only fully ripe fruits are used for extraction of juice by cold process and hence there is no
loss of vitamins and other food values contained in the fruit juice. Squash contains filtered
and cooled syrup, fruit juice, citric acid flavours, permitted colours and preservatives.
28 x 200ml glasses of refreshing drink can be made out of one bottle of 700ml Squash.
179
Directions for use

Shake well the squash bottle. Mix 25ml (4 tea spoon) squash with cold or soda water. Add
10gms of sugar for 200ml (1 Glass) to make a HAPPY delicious drink.
FRUIT CRUSHES
Pineapple Fruit crush

Grape Fruit crush
Packed in 700ml & 350ml PET bottles with plastic closures.
Packing
12 x 700ml bottles in a carton (size of carton
L 28.5 cm x B -22 cm x H 26
cm)
Net Weight 10.65 Kg Gross weight 11.46 kg
24 x 350ml bottles in a carton(Size of carton L- 34 cm x B 24.5 Cm x H 11.3 Cm)
Net Weight 10.38 Kg Gross weight -11.30 kg
General description
By using cold process technology, the food values and vitamins contained naturally in the
fruits remain intact. The crush contains filtered cool syrup, fruit juice, citric acid, permitted
flavours, colour and preservative. Crushes are by nature thicker than squashes.
28 x 200ml glasses of refreshing drink can be made out of one bottle of 700ml crush.
180
Directions for use

Shake well the Crush bottle. Mix 25ml (4 tea spoon) with cold water or soda water. Add
sugar to your taste for 200ml (1 Glass) to make a HAPPY delicious drink.
SAUCES
Soya bean
Tomato
Vegetable
Green Chilli
Red Chilli
Packed in 200gm glass bottle or HDPE bottles. 500gm & 1 kg HDPE bottles with plastic
caps.
Packing
24 x 200g bottles in a carton (Size of carton L 33 cm x B- 22 cm x H- 19 cm )
Net weight 5.42 Kg Gross weight 10.4 Kg
12 x 500g bottles in a carton (Size of carton L 26 cm x B 19 Cm x H 22 Cm)
Net weight - 6 Kg Gross weight 6.4 Kg
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12 x 1 kg bottles in a carton (Size of carton L 30 cm x B -23.5 Cm x H 28.5 cm)

Net weight 12 Kg Gross weight 13.3 Kg
General description
Ingredients for sauces are chosen for quality, consistency and ripeness, No added colours
are used in the preparation. Red chilli sauce contains tomato puree, red chilli powder, salt,
sugar, onion, ginger, garlic, citric acid, stabiliser, acetic acid, spices and permitted
preservatives. Green chilli sauce contains green chillies, potatoes, pumpkin and red tomato
puree, sugar, salt, onions, garlic, ginger, acetic acid, citric acid, stabilizer, spins and
permitted preservatives. Vegetable sauce contains all ingredients of green chilli sauce except
green chillies.
Precaution
After use keep the bottle tightly closed in a cool dry place. Do not use wet spoon or bare
fingers to handle the sauces.
PICKLES
Tender mango
Cut mango
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Lime
Garlic
Green chilly
Red chilly
Tomato
Mixed vegetable
Gooseberry
Bitter gourd
Ginger
Dates
Packed in 200gm, 300gm & 400gm glass bottles with lug caps.
Packing
48 x 200g bottles in a carton( Size of carton L 40.3 cm x B 26.5 cm x H 19.4
cm)
24 x 300g bottles in a carton(Size of carton L 28 cm x B 21.5 cm x H 22.7
cm)
Net weight 7.2 Kg Gross weight 12. Kg
24 x 400g bottle in a carton (Size of carton L 30.5 cm x B 23.7 cm x H 27.5
cm)
Net weight 9.6 Kg Gross weight - 16 kg
General description
Pickles contain appropriate quantity of vegetables, condiments, gingelly oil (sesame
oil), salt, synthetic vinegar, asafoetida and permitted preservatives.
Precaution
Alter use, keep the bottle tightly closed in a cool dry place. Do not use wet spoon or
bare fingers to handle the Pickles.
FRUIT JAMS
183
Mixed fruit Jam

Pineapple Fruit Jam
Mango Fruit Jam
Packed in l00gms, 200gim HDPE cups, 350gms, 500gms glass bottles, 1kg & 4kg HDPE
cans.
Packing
96 x l00g cups in a carton(Size of carton L-40cm x B - 26.5 cm x H 30 cm)
48 x200g cups in a carton( Size of carton L 31 Cm x B 24 cm x H 34.7 cm)
Net weight 9.60 kg Gross weight 11 kg
24 x 350g glass bottles in a carton (Size of carton L 28 cm x B 21.5 cm X H 22.7
cm)
Net weight -8.40 Kg Gross weight - 13.40 kg
24 x 500g glass bottles in a carton (Size of carton L- 30.5 cm x B 23.5 cm x H 27.5
cm)
12 x 1 Kg HDPF jars in a carton (Size of carton- L- 35.5 cm x B- 27.5 cm x H 16 cm)
Net weight - 12 Kg Gross weight 13.40 Kg
6 x 4 kg HDPE jars in a carton(Size of carton L 41.5 cm x B 28.5 cm x H 24.5 cm
General description
Jam is prepared by boiling fruit pulp with sugar to the required consistency. It is thick and
spreadable, but not sticky; to achieve this result only sound and fully ripened fruits are used
for the extraction of pulp.
184
185
186
CHAPTER -7
COMPARISON OF SALES ANALYSIS OF THE COMPANY WITH
ITS COMPETITORS.
Comparing the results to its competitors,Kiz FOOD reported Total Revenue decrease in the
1 quarter 2014 year on year by -2.38 %, despite revenue increase by most of its competitors
of 2.44 %, recorded in the same quarter.
With net margin of 6.66 % company reported lower profitability than its competitors.
K.I.Z. FOOD Company's Sales vs. its Competitors Results
(List of Competitors, Quarterly in Millions of $)
COMPANY NAME
KIZ FOOD
TICK
ER
REVENUE NET INCOME NET MARGIN
CASH
FLOW
1Q
HNZ 2,977.12
198.25
6.66 %
1,376.01
HUL LIMITED
1Q
HSH 955.00
42.00
4.4 %
14.00
TOPS
2Q
MKC 1,033.40
84.50
8.18 %
-8.00
NILONS
1Q
MJN 1,113.30
202.40
18.18 %
39.20
1Q
SJM
1,234.30
118.50
9.6 %
72.70
CLX 1,386.00
137.00
9.88 %
23.00
HRL 2,244.87
140.71
6.27 %
-140.51
COMPANY
ANNAPURNA
FOOD LIMITED
PATIDAR FOOD 1 Q
HORMEL
FOODS CORP.
1Q
187
Kellogg Company 1 Q
3,742.00
406.00
10.85 %
11.00
BMY 3,811.00
936.00
24.56 %
1,639.00
4,283.80
404.60
9.44 %
20.20
4,362.00
513.00
11.76 %
-204.00
-321.40
-56.10
BRISTOLMYERS SQUIBB 1 Q
COMPANY
GENERAL
MILLS, INC.
Kraft Foods Inc.
CONAGRA
2Q
1Q
GIS
KRF
T
2Q
CAG 4,436.80
1Q
TSN
9,032.00
210.00
2.33 %
-387.00
Kraft Foods Inc.
2Q
KFT
13,286.00
1,029.00
7.74 %
2,791.00
PepsiCo, Inc.
2Q
PEP
16,894.00
1,978.00
11.71 %
2Q
JNJ
19,495.00
4,326.00
22.19 %
FOODS, INC.
TYSON FOODS,
INC.
NILONS FOOD
LIMITED
188
2,232.00
0.00
189
CHAPTER 8
CORPORATE SOCIAL RESPONSIBILTY OF THE
COMPANY.
"Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large"
This definition simply explains the meaning of CSR comprehensively.
Our core beliefs on CSR;
CSR is an inherent part of Global Business today . We believe that Corporate Social
responsibility is an inherent part of undertaking Global sustainable business today. With the
opening up of the market economy, globe becoming easily accessible and international
compliance standards being proposed and practiced, CSR would be an integral part of
business. For surviving, growing and sustaining in global business, the corporate sector
needs to involve various stakeholders and adopt the triple bottom line approach which
includes social, environmental and economic aspects.
Boundaries of CSR
There has been a lot of debate regarding the coverage of CSR. We believe that boundaries of
CSR start from within the corporation and extend to outside environment and the
communities interacting and affected by it. Right from the governance to the day to day
management of the enterprise, ethical values and practices need to be integrated into the
core of the organization. Further, while business is a part of the society and interacts with
various stakeholders and the environment, another challenge before the Corporate is to
assess the how it affects the society and the environment at large.
Adopting CSR relates to Attitudinal Change
Over the years, the industry has seen a movement of CSR from the lower end of the
continuum towards the higher end. Adopting CSR practices has a lot to do with overcoming
the barriers to change mindsets. Will CSR practices involve a huge amount of finance and
190
investment; this would result in shrinking the profit margins, social responsibility is the role
of the Government or the civil society organizations. These are some of fears and thought
processes which exist at present. There is a need to change the attitude and the mindsets to
understand the long term sustainable benefits of adopting CSR.
SME & CSR : CSR applies to all irrespective of size:
Small and medium enterprises in India are also awakening to the necessity of adopting a
holistic approach to the community. They are realizing that being a good corporate citizen is
as essential to their long term well-being as being a good citizen in their individual lives. It
is no longer a question of small enterprises being able to afford being socially responsible,
and more a question of the costs involved of not being a responsible corporate citizen. We
believe that CSR is for all irrespective of their size and will lead to good corporate
citizenship and sustainable business development.
Adopting sustainable practice : Transparency & Reporting
With the increasing emphasis on reporting on the triple bottom line indicators, it is become
equally important to be accountable towards adopting socially responsible practices which
would lead to the defined indicators. There is a need to adopt sustainable practices first and
integrate them into the day to day functioning of the business and further report regarding
the progress and the challenges faced.
191
192
CHAPTER-9
AFTER SALES SERVICES OF THE COMPANY.
As per the after sale service is concerned thatKiz Food limited having also a several type of
after sale service plan to satisfy the customer and touch the desired goal of the company. As
initially company look for damage of the product and its returning on due date. Some of
theKiz Food policy regarding the after sale are following.kiz food believe in this
methodology
Customer service
193
According toKiz Food The service you provide to your customers is crucial to your business
success.by remembering this termKiz Food limited setup a online customer service in
order to get suggestion or query of the customer. By this link a customer who is member
ofKiz team can give suggestion and also can complain it
Product service
As per the product service is concerned thatKiz Food limited having a one particular counter
in every region to take the complaint from customer side. In this particular service company
came to know about the product fault including damage expiry date or other issues related to
the product. With this service customer can return their damaged product..
Handling customer complaints

KIZ Food limited use to take the responsibility to handle the customer complaint whatever
comes from customer side.these are the after sale service of theKiz Food limited.
194
195
CHAPTER-10
RESEARCH AND DEVELOPMENT OFKiz FOOD LIMITED
Innovation has always been integral to ITC's DNA, the foundation for the unique and
differentiated value propositions that it has crafted over the years.
Since I983,Kiz R&D Centre in Bengaluru has played a crucial role in building this
capability, creating products and solutions that sustain the Company's competitive
advantage. Now rebranded asKiz Life Sciences and Technology Centre, this new
beginning highlights its integral part in keeping the Company future-ready and driving its
game-changing businesses of the future. It also reflects the Centre's new mandate- to go
beyond supporting and improvingKiz's existing products and services and create innovations
that not only meet but anticipate consumer needs.
KIZ's ambitious agenda of sharpening its competitive edge in an enormously challenging
marketplace demands better products that can positively impact consumers' lives, demands
196
solutions that effectively deliver care and wellness to consumers, demands products and
services that are world-class and a byword for excellence. It is here that the Centre will step
in - endeavouring to develop path-breaking solutions that blend science, research and
technology to enhance not just product experience but overall quality of life.
The challenging task of driving science-led product innovation has been carefully addressed
by appropriately identifying the required set of core competency areas of science such as
Plant Breeding and Genetics, Agronomy, Microbiology, Cell Biology, Genomics,
Proteomics, Silviculture and several disciplines of Chemistry. Presently, theKIZ Life
Sciences and Technology team has evolved with over 250 world-class scientists and is
creating Centres of Excellence in these areas. The Centre is carrying out research and
securing proprietary technologies for the Company's businesses.
Agrisciences R&D
The Agrisciences R&D team continues evaluating and introducing several germplasm lines
of identified crops including Casuarina and Eucalyptus to increase the genetic and trait
197
diversities in these species, towards developing new varieties with higher yields, better
quality and other relevant traits forKiz's businesses.
This high-end lab research is supported by field research atKiz 's R&D Centre at
BHAVNAGAR which is at the core of the Company's fibre strategy for its Paperboards and
Specialty Papers business. This state-of-the-art research centre is consistently striving to
improve the productivity of several tree species, in order to give attractive land-use
alternatives to traditional farmers and wasteland owners. So far, more than 100 highyielding, fast-growing and disease resistant 'Bhadrachalam' clones have been produced on a
commercial scale, including 23 site-specific clones adapted to problematic soils. The
productivity of these saplings is 6-9 times that of normal seedlings.
KIZ's comprehensive R&D facilities at Rajahmundry in Andhra Pradesh cover all
aspects of tobacco crop cultivation. In collaboration with the Central Tobacco Research
Institute and the Tobacco Board,Kiz pioneered FCV tobacco cultivation in India and
introduced the Burley and HDBRG varieties.Kiz's continued focus on crop development has
resulted in new varieties of seeds and hybrids in Andhra Pradesh and Karnataka, which have
significantly improved farm yields and helped fulfill the demands of a dynamic global
market.
Biosciences R&D
198
KIZ Life Sciences and Technology Centre has created a Biosciences R&D team to design
and develop several long-term research platforms evolving multi-generation product
concepts and associated claims that are fully backed by scientific evidence for the Foods and
Personal Care businesses. Recognising the unique construct ofKiz in terms of its strong
presence in agriculture, food and personal care businesses, a convergence of R&D
capabilities is being leveraged to deliver future products aimed at nutrition, health and wellbeing.
In addition,Kiz food Life Sciences and Technology Centre has evolved a strategy in
building a new value chain called, 'Nutrition' with a special focus on 'Indianness' and 'health
and well-being' founded on the basis of Value Added Agriculture (VAA). The initial
activities related to VAA have already commenced with a focus on Soya.
Global Collaboration
Kiz food Life Sciences and Technology Centre has also initiated several research
collaborations with globally recognized Centres of Excellence to remain contemporary and
fast track its journey towards demonstrating multiple 'proofs of concept'. These
collaborations, covering identified species, are designed in a manner that enablesKiz to gain
fundamental insights into several technical aspects of plant breeding and genetics and the
influence of agro-climatic conditions on the growth of these species. Such interventions will
accelerateKiz's efforts in creating future generations of these crops with greater genetic and
trait diversities and leading to significant benefits for the Company's businesses. Further,
these outcomes have a strong potential to contribute towards augmenting the nation's
ecological capital as well.
199
Master Design Facility
Catering to the need ofKiz food 's Lifestyle Business is a contemporary master Design
Facility at Manesar, Gurgaon. It offers R&D facilities that have enabled the Company to
offer internationally benchmarked fashion collection every season.
Relentless Commitment to Quality
Pursuing the Company's relentless commitment to quality, each business is mandated to
continuously innovate on processes and systems to deliver superior competitive capabilities.
All manufacturing units of the Company have ISO quality certification. All manufacturing
units of the Branded Packaged Foods businesses (including contract manufacturing units)
and hotels have stringent food safety and quality systems. All Company owned units / hotels
and almost all contract manufacturing units of the Branded Packaged Foods businesses are
certified by an accredited 'third party' in accordance with 'Hazard Analysis Critical Control
Points' (HACCP) methodology. Additionally, the quality of all FMCG products of your
Company is regularly monitored through 'Product Quality Ratings Systems' (PQRS).
200
201
CHAPTER -11
MARKET POSITION OF KIZ FOOD LIMITED.
KIZ is an 3.10 CR. (FY 2012 revenue) manufacturer and marketer of food products for
consumers and institutional customers in North America, Europe, and Asia Pacific and
internationally. The company is best known for its namesake brand,Kiz Ketchup, which has
a 60% market share in the United States, 70% share in Canada and 78% share in the United
Kingdom. OtherKiz products include sauces, salad dressings, frozen foods, pasta meals and
infant food. The company's top 15 brands, including the flagship Heinz branded products,
make up 70% of sales revenue. Other well known products include Ore-Ida Frozen Foods,
Weight Watchers, T.G.I. Friday, branded relish, mustard, mayonnaise, vinegar, soups and
sauces.
Record sales revenue derived in part from new product roll-outs, recent acquisitions, and
natural brand extensions, leadKiz to a 52 week high of $58.56/share on October 18, 2012.
On November 7, 2012, the stock closed near that level at $57.66. Still there is room for
upside in that the *stock is up 10.4% over 52 weeks while the S&P 500 is up 16.2%. The
Heinz return on equity is an impressive 32.9%.
Heritage: The First Name in Ketchup
Throughout the worldKiz is synonymous with ketchup.Kiz sells 650 million bottles of
ketchup every year and approximately 2 single serve packet of ketchup for every man,
woman and child on the planet. For millions of families the world over, 'if it isn'tKiz it isn't
ketchup'
International Growth
Ten years ago less than 50% of revenue was generated outside of the US. Today, two thirds
of sales revenue comes from outside the US, following significant investments by the
company in emerging markets of India, China and Indonesia. Geographic diversification,
asKiz has moved into markets across the globe, clearly helped the company increase sales
revenue over 9% in 2012. The presence of 25 global websites really tells the story of an
expandingKiz footprint.
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The infant/nutrition division has grown to contribute $1.2 billion in annual revenue because
of gains in China, India and Latin America. More than 40% ofKiz Baby Food is sold in
Emerging Markets.
Growing Annual Dividend
CurrentlyKiz is paying an annual dividend of $2.06 and yielding an attractive 3.5%
The company has been paying dividends continuously since 1911. More impressively, for 7
yearsKiz has consistently increased its annual dividend, right through the financial crisis,
with a 5-year average increase of 6.40%. TheKiz payout ratio is 65%.
203
204
Market position as per revenue
Segmental Revenue (%)

48.30%
0.9
40%
-1
MIX PICKLE
KATCHUP
VINEGAR
PASTE GINGER
JAM
11.8
Market Share ofKiz FOOD in FMCG Companies in India
6%
4%
4%
34%
8%
HUL
ITC
Nestle
Britania
Dabur
29%
KIZ Food
205
In the above pie charts we see the position of various FMCG companies doing business in
India. We can see thatKiz having the 4% market share and is following by Dabur as close
second in the market share of FMCG products
Category Wise Sale Growth of FMCG Sector ofKiz Food in India
CATEGORY
PERCENTAGE
MIX PICKLE
19.3%
KATCHUP
22.40%
VINEGAR
15.70%
JAM
13.60%
SPICE
13.60%
19.40%
19.30%
MIX PICKLE
13.60%
KATCHUP
22.40%
VINEGAR
JAM
13.70%
15.70%
SPICE
OTHERS
206
207
CHAPTER -12
SWOT ANALYSIS OFKiz FOOD LIMITED
Strengths
Food market including spice and jam market is 2,00 crore andKiz has lions share in
it.
Strong brand recognition and product portfolio.
Distribution network.
Well-established distribution network extending to rural areas.
Strong brands in the FMCG sector.
Low cost operations.
Weaknesses
Dependence on spice revenues
Newly introduced brand in the market
Unrelated diversification.
Low export levels.
Small-scale sector reservations limit ability to invest in technology and achieve

economies of scale.
Several "me-too products.

208
Opportunities
Consumption Of personal care products
Rural Market
Online marketing
Large domestic market.
Export potential.
Increasing income levels will result in faster revenue growth..
Threats
Competition both Domestic & International
Increasing inflation
Regulatory restrictions by hul overKiz
Declined sale of Kiz
Imports.
Tax and regulatory structure.
Slowdown in rural demand.
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210
CHAPTER-13
INTERVIEW OF SALES EXECUTIVE
Interview of sales executive plays an important role in any organisation because a
companys sales and performance depends on the sales executive up to a certain extent. For
some executive hiring authorities who do not have any background in Sales, it can be a
challenge to really know if they are making a good hiring decision when interviewing
prospective Executive Sales Leaders, Managers, or quota carrying individual contributors.
Why? Because any halfway accomplished sales professional is capable of putting forward a
sophisticated smoke & mirrors presentation in an attempt to close a deal.
The sales process and strategic complex selling can be somewhat mystifying for some
executive hiring authorities. The whole interview/screening process gets even worse if an
executive recruiter is in the mix who lacks any direct background in sales and is incapable
of properly screening/interviewing candidates in depth as a result. This can lead to
disastrous hiring decisions given most businesses will suffer dramatically if the individuals
who own producing a company's revenue fail to meet their objectives.
A number of executive hiring authorities have asked me for example questions/areas of

focus that I concentrate on when interviewing Sales Executives with respect to a candidate's
"battlefield" acumen. The actual flow of interview information is what really dictates how
and in what order the questions are asked.
Tell me about the politically complex sales you've directly executed/contributed on

as a Sales Rep, a Manager/Executive, a coaching Manager/Executive.
Describe your approach to sales strategy, planning and execution (including any
"solution selling" methodologies you've consistently employed) within the targeted
accounts described in 1.0.
211
Describe how you "mapped" out the various "players" in the accounts and your
specific approach/strategy with each member you called on within the targeted
accounts described in 1.0
Describe your approach to building/creating an opportunity within the targeted

accounts described in 1.0.
Describe your method of approaching/building business relationships

up/down/across the targeted account's organizations described in
Describe your approach to building and positioning a customer specific compelling

value proposition at each of the levels you target within the accounts described in 1.
Describe an opportunity where there was no specific funding/budget originally

identified/earmarked for acquiring your products/solutions. Specifically describe 1,7
including how you dealt with competitive product solutions or competitive projects
competing for the same funding pool.
Describe your approach to coaching sales reps specifically in the context of how
you've coached/influenced a sales rep's behavior within the applicable accounts
described in 1.while specifically focusing on the coaching areas described in 1,8
above.
Most people directly involved in politically complex selling, versus simply flying a desk and
coaching from the sidelines, can answer these questions with a lot of detail. The nature of
the detail exposes if someone is just a gunslinger flying by the seat of their pants and/or
lucky enough to be selling a product "that sells itself", or if they are deliberate in their
approach to a sales process associated with consultative solutions selling methodologies in
politically complex, multi-functional, hierarchical client situations (e.g., selling into matrix
organizational structures within the Mil/Aero industry, or large international corporations).
Drilling down on all the above in the context of someone being a coaching
212
Manager/Executive will tell you how well they are able to influence the results their sales
team delivers versus simply being a choke point for information and data consolidation (i.e.,
manage sales funnel data).
A Manager/Executive that is a good sales coach can add an unbelievable amount of value in
the context of ensuring that the "right" deals are ultimately won (i.e., not all deals are good
deals). A Manager/Executive that is a good sales coach can build a fantastic sales team that
is welded together and that will walk through fire for their Manager/Executive/Company.
All of the above questions should also be put into context with the size of the candidate's
prior employers and the market/brand recognition associated with what they were selling.
Someone whose successful selling experience only consists of selling name brand industry
leading products/services for an acknowledged category leader could fall on their face
walking into a never heard of them before start-up coming out of stealth mode attempting to
close the company's first sales.
Most of the above questions attempt to draw out a candidate's method for producing a
result/outcome. It is critical to make sure to drill into specifically - how - a candidate drove
the results they are claiming. Focusing more one how someone produced a given result or
outcome versus simply focusing on what results they produced will blow away a lot of the
sophisticated smoke & mirrors any halfway accomplished sales professional is capable of
putting forward.
Obtaining solid clear answers to the above questions/areas of focus will take an executive
hiring authority unfamiliar with sales process and strategic complex selling a long way
down the road to making a solid hiring decision.
Here are a few qualities that define an effective sales person
Goal Oriented - The driving force behind every Company is increased sales and
high profits. Most Companies draw out expected sales targets for every year. The
onus lies on the sales team to not only meet these targets but go beyond them. Every
213
sales person must be goal oriented and should work towards matching these sales
figures.
Confident - A sales person should be confident about the product he is selling as

well as his own ability to successfully close a sale. Especially in the case of door to
door selling, the sales person should be able to interact well with the prospective
buyer, gain their trust, arouse an interest and eventually convince them to try a new
product. Sales persons should be willing to handle all kinds of tense situations.
Patient & Courteous - Convincing a prospective customer to buy a product is not

an easy task. Selling is an art and requires patience. A sales person should be able to
guide a customer through the entire process which begins with a prospective buyer's
indifferent attitude towards a brand and ends with them placing an order. The sales
person should be courteous and pleasant while taking a buyer through these stages.
Must have good communication skills and should be smart enough to execute the
task.
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CHAPTER -14
RESULTS & CONCLUSION.
In FMCG sector,Kiz Food has good position in the market. Through its sales and
distribution network, it reaches every corner of India. It generates awareness of its brands
through new innovative ideas. It has a sustainable living plan which focuses on areas like:
waste, sustainable sources, better livelihoods, health, nutrition and water. The reason of
being a repudiated brand in fast moving consumable goods sector is its focus on all
different segments with intension to development. Its culture to give values to its
employees, customers, suppliers etc. distinct it from others.
The company has a wide portfolio of products. Consumer goods are those goods that are
used widely by the consumers in their day to day life. So a major task is to make these
products available to the consumers.Kiz Food limited is the reputated company in India in
FMCG category. It has a presence in food like, jam, jelly, pickle, spice, katch-up etc..
As per the study of the topic, it is found out that among the consumers of FMCG
products,Kiz is the trusted and preferred brand. Not only in urban areas but also in rural
areas, it is the most famous and entrusted brand.
KIZ Food believes that an organizations worth is also in the service it renders to the
community.Kiz Food is focusing on health & hygiene, education, women empowerment and
community.
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217
CHAPTER 15
RECOMMENDATION
KIZ Food Limited will have to consistently widen its portfolio with new benefits, variants
and formats to cater to affluent people who have the propensity to spend. Both the
companies should conduct more surveys in order to know about the customer satisfaction in
the rural areas. Both the companies can provide incentive in food segment like buy one get
one free offer with ginger garlic paste, price cuts and massive advertising. As per the survey
that has been conducted for the study we have found out that people still wants to go to
traditional shop for the purchase of food items, so the company should offer attractive offers
to the retailers to capture the greatest shelf space. Jam and pickle market is saturated, and
both the companies have products in premium range and middle income range moreover,
they are indulged in price war since 2009, now they have to launch new products like
vinegar, fried onion, products etc all these sectors are untapped, they can focus on these
sectors. But prices of these products should be reasonable as small companies like jam;
paste etc already exist and are good competition.
In mix pickleKiz Food presence is very significant with nilons, but they are incurring lots
of losses with heinz . They have introduced various flavors but it had not worked as they
have thought, they even had the advantage of first mover because it was with jam and jelly
are introduced in food segment. They should focus on a niche market and then position their
product.
In the spiceKiz Food has superfreash, it is positioned as a very premium brand and also and
medicated product. So there is a need to change the positioning to reap greater benefits.
More needs to be spent on the advertising of the product and on the below the line
advertising.
In the pickle segment both the companies are giving competition to each other .after nilons
introduced mix pickle in India with their anti-ageing formula Kiz Food came up with antiageing formula with super fresh pickle. Both are giving neck-to-neck competition to each
other. Another brand ofKiz Food is vinegar, which has a range of lotions, but it has to be
appreciated with effective advertisement. They can create awareness through door to door
operation. They can offer discounts and free gifts also.
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CHAPTER 16
BIBLIOGRAPHY
In order to make this project I have taken the help of the following websites and Books:
References from electronic media:
www.kiz.co.in
www.wikipedia.com
www.scribd.com
www.economictimes.indiatimes.com
www.studymode.com
www.academia.edu.com
www.citeman.com
www.gofrugal.com
www.webcrawler.com
www. Tradeindia.com
Reference from print materials:

Principles of Marketing- Philip Kotler & Gerry Armstrong
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CHAPTER 17
FINDINGS
-Distribution Network ofKiz
HowKiz FoodExpanded Its Distribution Network
Previously
Network of 2,700 redistribution stockists and sub-stockists o supply products to store
in large villages.
For smaller villages with a population of less than 5,000, its products were sold
through wholesalers. Shopkeepers from these villages would travel to these
wholesalers and to pick up their supplies as and when it suited them. At best, the
distribution in these villages was patchy and the company had no strategy on whom
to cover and whom to leave out.
2010 onwards
Later, while formulating a formal new plan forKiz Foods distribution in rural areas, the
company realized that the buying habits of rural consumers were changing. Many of these
consumers actually aspired to buy the same products they saw the city people using. Based
on this insight, the company set about getting its redistribution stockists to start offering as
many as 250 SKUs to store in villages with a population of over 5,000. Handling the
complexity at the distributors end, due to increased scale was a challenge.
The company now uses geo-tagging to understand how far villages are from the nearest
highway and how long it would take the nearest distributor to reach them.
Also, expectations from rural distributors are different. Rural areas still in growth mode and
distributors are expected to actively push shopkeepers to stockKiz spice, pickle and katchup. Pushing products and grabbing store spaces is still very much the name of the game.
Promotion through merchandising and display will play a key role.
222
Also to that the higher cost of raising capital for smaller outfits and the company still offers
them healthy markups of 5 percent. Most distributors make about 2-2.5 percent on the goods
sold.
Rural distributors usually have two weeks worth of stock with shopkeepers and one weeks
worth of inventory, which allows them to turn them over 17 times a year leading to a return
of at least 34 percent. This takes care of their cost of capital as well as allowing them to
invest in technology.
Distributors on their part are expected to replenish supplies in stores as and when the
shopkeeper asks them to do so. Stock levels for urban distributors are kept at one or two
days only.
In addition to improved maps,Kiz is also making use of wireless technology to get real time
information on demand patterns and trends. Distributor sales teams have been handled
devices. In other places, mobile phone applications are used to key in this data, which is
then automatically uploaded.
KIZ can now get almost real-time information on consumer behavior and demand patterns,
instead of having to rely on its distributors for such data. One way to use this would be to
craft marketing campaigns for products that are popular in certain regions and districts of
the country.
Direct Distribution
Crucial advantage:
With the company- and not the wholesaler- controlling what the shopkeeper buys, it
is possible to manage the product mix and push higher margin products into the
market. The added profitability can then be used to get distributors to push deeper
into distributing products and also invest in technology.
Lastly, the company hopes to improve its product mix and increase sales of higher margin
pickle and jams. With smaller pack sizes, the company has seen that consumers who can
afford more expensive brands tend to shift over.
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CHAPTER 18
WORD OF THANKS
This project report is a result of endless effort & immense degree of toil. I would like to
thank all those people who graciously helped me by sharing their valuable time, experience
& knowledge. I would like to express heartiest thanks to our chairman sir Dr. D. K. GARG
(Chairman), Mr. M. K. VERMA (Dean) and placement head Mr. T. K. GUHA for lending
me their kind support for completion of my project.
I thank all those who directly or indirectly supported me morally, financially and through
providing knowledge by which I could complete my project as well as summer training. I
thank to all those readers who will study this project in the future.
Last but not the least I am thankful to the management ofKiz food Ltd. Lucknow U.P. &
especially to my guide Mr.Krishna kumar (Sales Manager) whose Co-operation and
guidance was a milestone in completion of my project. Who influenced me to work
positively at each step by giving his precious time to discuss and to provide relevant
information and providing me co-operation and cordial environment for making me
comfortable during my stay in company.
Lastly, I express my gratitude to my parents and elders who financed this project and have
been a moral support to me during the project.
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Summer Training Project On FMCG

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Summer Training Project On FMCG

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A SUMMER TRAINING PROJECT REPORT

A STUDY ON MARKETING AND MERCHANDISING STRATEGY USED IN

Ishan Institute of Management & Technology

Seal/Stamp of the guide

Name of the guide

The summer training project report on A STUDY ON MARKETING AND

FMCG industry, alternatively called as CPG (Consumer packaged goods) industry

Introduction of the company

Turnover of the company

Head office of the company

d) Plants of the company in India

Awards and Achievement of the Company

Sales Promotion Strategy of the Company

Marketing Strategy ofKiz Food limited

Competitors of the company

Comparison of sales analysis of the company with its

Corporate Social Responsibilty of the company.

After sales services of the company.

R & D activity of Kiz Food limited.

Market position ofKiz Food limited.

SWOT analysis ofKiz Food limited

Interview of Sales Executive

Results & conclusion.

FMCG industry, alternatively called as CPG (Consumer packaged goods) industry

2. ITC (Indian Tobacco Company)

7. K.I.Z. Food limited

INTRODUCTION OF THE COMPANY

TURN OVER OF THEKiz FOOD LIMITED

Australia, Canada, Africa

Company Turnover Rs. 0.5 to 2.5 Crore Approx.

MR. ZARDAR BADAMI

MARKET SEGMENTATION OF K I Z FOOD LIMITED

HEAD OFFICE OF THE COMPANY

PLANTS OF THE COMPANY IN INDIA

: KIZ Foods Ltd.

: Survey No. 199, Mahuva Savarkundla Road, Nr. Murtuza Exports

: The Managing Director

: Food processing, grain processing, rice mills, spice processing,

Led by a group of ardent food aficionados, K.I.Z. is relentlessly working towards

Ensure delivery of accurately graded and correct quality of food.

Ensure high-quality from production to final packaging.

Continuous quality enhancement of products.

To achieve sustainable growth by

OBJECTIVES OF THE COMPANY

To study the competitive brands in the market of skin category.

AWARDS AND ACHIEVEMENT OF THE COMPANY

Kiz Food: Kiz wins Marketing Award in the category pickle:

Kiz Food:Kiz named Costcutter Supplier of the Year

Kiz Food: Kiz receives Pearl of Polish Economy Award

Kiz Food: Kiz pickle awarded Pearl of FMCG Market 2013

Kiz awarded "Transatlantic Award 2012" for innovative aseptic technology

FEATURES OF THE COMPANY

K.I.Z. offers the following products in Drum packing...

2. White (Silver Skin) Onion In Vinegar - Jar Packing

4. Dehydrated Onions, Vegetable

5. Sauces & Chutneys

Consumer Oriented Sales Promotion

To increase short term sales

To establish a brand name

To make cross selling

To cope up with competition

To avoid advertising clutter

Tools of Consumer Oriented Sales Promotion: