An Industrial Visit Report

On

Havmor Ice-cream

Submitted to: - B.W.T.Institute of Business Administration

H.K College Campus

Ahmedabad.

Submitted By

Kavita Rampuria

Roll No: 1101

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PREFACE

Being a BBA student industrial visit forms an essential part of our course. As management is

a science and is universally applicable, it is in all organized efforts be it a business activity or

any other activity. For achieving perfection in the field of management, one must have both

theoretical and practical knowledge. We can acquire theoretical knowledge from books but

practical knowledge can be acquired only through such industrial visits. This visit has been

useful in the sense it has developed our skills in interpreting and analyzing various functions

such as marketing, production, human resource and finance. This report is the part of the

practical study and gives immense knowledge about the working of Havmor Icecream.

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ACKNOWLEDGEMENT

First of all I would like to thank the Almighty God for his everlasting grace and

mercy that guided me throughout my project work.

The materialization of the ideas and views of this project have seen valuable

contribution of numerous friends and academicians in the form of selfless criticism, well

wishers and above all, words of inspiration. The satisfaction and euphoria that accompany the

successful completion of any task would be incomplete without the mention of certain

individuals who have been of constant help, guidance and encouragement in the making of

this project a reality.

I sincerely and respectfully thank Mr.Bhaumik Nayak and Ms.Aunkita Pandey for

their constant guidance throughout the course of the project.

I also express my sincere thanks to my friends for their encouragement and support

throughout my project.

I put forth my respects and regards to my parents, whose presence steered me

through, to the end. Their blessings and moral support were of great inspiration, enabling us

to overcome the greatest odds with greatest ease.

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TABLE OF CONTENTS

CH.NO PARTICULARS PG.NO

PREFACE I

ACKNOWLEDGEMENT II

1 INTRODUCTION TO ORGANIZATION 7

1.1 INTRODUCTION TO HAVMOR 7

1.2 COMPANY PROFILE 8

1.3 HISTORY 10

1.4 MISSION 11

1.5 FUTURE PLANS 12

1.6 ORGANIZATIONAL STRUCTURE 13

2 PRODUCTION MANAGEMENT 15

2.1 MAIN PRODUCTS OF THE COMPANY 16

2.2 RAW MATERIALS USED 17

2.3 PRODUCTION PROCESS 18

2.4 LOCATION OF THE UNIT 20

2.5 TIME KEEPING SYSTEM 20

2.6 INNOVATIONS 21

2.7 PRODUCTION DETAILS 22

2.8 STORES MANAGEMENT 24

2.9 PLANT LAYOUT 24

2.9.1 PROCESS LAYOUT 25

2.9.2 PRODUCT LAYOUT 25

2.9.3 FIXED POSITION LAYOUT 25

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3 PERSONNEL MANAGEMENT 27

3.1 RECRUITMENT, SELECTION AND INDUCTION 28

3.1.1 RECRUITMENT 28

3.1.2 SELECTION 28

3.1.3 INDUCTION 29

3.2 TRAINING AND DEVELOPMENT 30

3.2.1 TRAINING 30

3.2.2 DEVELOPMENT 30

3.3 PROMOTION, DEMOTION AND TRANSFER POLICY 31

3.3.1 PROMOTION 31

3.3.2 DEMOTION 31

3.3.3 TRANSFER 31

3.4 GREIVANCES HANDLING PROCEDURE 32

3.5 PERFORMANCE APPRAISAL 32

3.6 PERSONAL RECORDS 33

3.7 WAGES AND SALARY ADMINISTRATION 33

3.8 TOTAL NUMBER OF EMPLOYEES 34

3.9 PROVIDENT FUND SCHEME 34

3.10 EMPLOYEES BENEFITS AND SERVICES 34

3.11 TRADE UNION 35

4 MARKETING MANAGEMENT 37

4.1 RESPONSIBILITY AND AUTHORITY OF INDIVIDUAL 38

4.2 PRODUCT PLANNING 39

4.3 BRANDNAME ANG LOGO 39

4.4 MARKETING RESEARCH 40

4.5 MARKET SEGMENTATION 40

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4.5.1 BASIS OF FLAVOURS 41

4.5.2 BASIS OF PACKAGING 41

4.5.3 BASIS OF CONSUMER SEGMENT 41

4.6 DISTRIBUTION CHANNEL 42

4.7 PHYSICAL DISTRIBUTION 43

4.7.1 WAREHOUSING 44

4.7.2 INVENTORY 44

4.7.3 ORDER PROCESSING 44

4.8 PACKAGING AND TRANSPORTATION 45

5 SALES DEPARTMENT 47

5.1 SALES ORGANIZATION 48

5.2 SALES BUDGET 48

5.3 PRICING POLICY 49

5.4 CHANNEL OF DISTRIBUTION 49

5.5 ADVERTISING 50

5.6 SALES PROMOTION 51

6 FINANCE MANAGEMENT 53

6.1 FINANCIAL REVIEW 54

6.2 ORGANISATIONAL STRUCTURE 54

6.3 FINANCIAL PLANNING 54

6.4 CAPITALISATION 55

6.4.1 CAPITAL STRUCTURE 56

6.4.2 DEPRICIATION POLICY 57

6.4.3 MANAGEMENT OF WORKING CAPITAL 58

7 SWOT ANALYSIS 60

8 CONCLUSION 62

BIBLIOGRAPHY 64

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CHAPTER-1

INTRODUCTION TO ORGANISATION

1.1 INTRODUCTION TO HAVMOR

Havmor literally meaning H-A-V-E-M-O-R-E, one of the best names for food

business was coined by Late Shri Satish Chandra Chona in 1944.

HAVMOR is a privately owned company manufacturing varieties of ICE CREAMS,

they also run RESTAURANTS and FAST FOOD PALOURS, and they also deal with

CATERING.

Havmor Group of Co. has its humble beginning since 1944, when its founders started

manufacturing ice cream with a hand-cranked machine.

The “Havmor” philosophy of providing its customers with the best quality products

and services at affordable prices has resulted in the brand being a household name in Gujarat.

Havmor has 50% of the Gujarat ice cream market. But that’s no surprise considering

that the group has the largest range of ice creams in the Gujarat in a variety of flavors, packs

and forms. The group has a product matrix comprising of cones, cups, candies, family and

party bricks and bulk packs.

Havmor introduced the concept of “flavor of the month” under which the company

develops and markets one new flavor every month for its customer’s delight.

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1.2 COMPANY PROFILE

Havmor Group of Co.

Factory Address : Modern Industrial Estate,

B/h. Naroda Station,

Naroda Road,

Ahmedabad-380 025

Fax : 91 – 079 – 2220 3890

E-mail : Dhiren@havmor.com

Office Address : 2nd Floor, Kashmira

Chambers,

B/h. Popular House,

Navrangpura,

Ahmedabad-380 009

Fax : 91 – 79-2657 5100

E-mail : Kamal@havmor.com

Website : www.havmor.com

Main Product : ICE-CREAMS

Land area

of factory : 5000 sq. ft.

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No. of employees : 420

Managing director

of the Company : Mr. Pradeep Chona

President : Mr. Anand khanonkar

Assistant

G.manager : Mr. Dhiren Shah

Purchase manager : Mr. Ajay Mistry

Finance &

Account manager : Mr. Vatsal Parekh

Quality Control : Mr. Sanjay & Miss. Urvi

Stores Management : Mr. S.k. Shetty

H.R.Assistance : Mr. Tejas & Mr. Pramo

Vice President (HR) : Mr. Rajesh Shah

Marketing Dept : Mr. Kamal Desai

Auditors : Mr. Mukesh

Bankers : Corporation Bank

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1.3 HISTORY

Small Beginning, Big Vision, Great Ambitions Havmor Ice Cream began its branded

life in 1944 in Karachi, in undivided India. By 1947, it was a popular local brand there.

But in 1947, in the wake of the Partition, its founder Satish Chona had to join the

exodus into India, with virtually no moveable assets. Searching for a new turf, he tried out

Dehra Dun and Indore, and finally, settled down in Ahmedabad.

No, it was not a case of “Brand Relocation”, or anything else as fanciful. He had to

start the venture from scratch again. In fact, he had to begin from a hand-cart at the

Ahmedabad Railway Station, churning out the Ice Cream manually.

He called this fledgling brand ‘Havmor’ - a neologism for ‘Have More’ - which meant

the customer, got more value for money, and more taste to relish, from his Ice Creams.

Perhaps he didn’t know it then, but he had laid the foundation for one of Western

India’s most enduring market legends and good quality, like good character, wins over the

situation sooner or later.

Today, Havmor Ice Cream is a delicious facet of Western India’s daily life, and part of

its market lore. It reaches hundreds of thousands of consumers through 8 main outlets and

3800 plus dealers.

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1.4 MISSION

“Good, Truthful, Clean” enterprising ethos.

Satish Chona, the founder of Havmor began his enterprise half a century ago with a

sample guideline ACHAI, SACHCHAI, SAFAI (Goodness, Truthfulness, and Cleanliness)

The succeeding generation at the help of company translated this axiom into a way of

life and business only the finest ingredients go into making of Havmor ice-creams. The whole

manufacturing process conforms to global standard of hygiene, and the company’s trade

practices are kept totally transparent.

Base on new generation technology and in house, The Company keeps formulating

new tastes at frequent intervals and surprising its consumers. It has also diversified into other

food items through a high profile restaurant chain.

Today decides later Satish Chonn simple philosophy still continues to be the corporate

axiom of the Havmor conglomerate, and the company values its entrepreneurial self esteem,

market image and reputation for financial up rightness above its pure business interests.

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1.5 FUTURE PLANS

Havmor is adopting a consumer oriented strategy as far as the price factor is

concerned, where in the priority was on passing more and more benefits to ultimate

consumers. All the benefits accruing out of economies of scale were passed to consumers in

the form of value for money offers like “Buy one get one free”.

The overall broad strategy of increasing the consumption was supported by

appropriate promotion and market support. The selection of media and communication

strategy was done with an objective of achieving the broad objective growth by growing the

market.

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1.6 ORGANISATIONAL STRUCTURE

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CHAIRMAN

FACTORYMANAGER

PURCHASEMANAGER

HRDMANAGER

MARKETING MANAGER

ACCOUNTS MANAGER

FINANCE MANAGER

MAINTENANCEMANAGER

QUALITYMANAGER

CONTROLMANAGER

STORAGEMANAGER

DISPATCHMANAGER

MANAGING DIRECTOR

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CHAPTER-2

PRODUCTION MANAGEMENT

Production is the process of transferring components into finished products for sales.

The term production is wide in scope. It includes manufacturing process also by which

raw materials are transferred into finished goods for final consumption. Land, Capital and

Labor organization and entrepreneurship are the factors of production, where as making

include market research, personal selling, sales promotion, advertisement, publicity and all

other activities relating to distribution.

Production refers to a process of fabrication of a product or a physical object through

there are men, material, capital and entrepreneurship for the satisfaction of human wants.

Production department is the heart of Havmor Unit, as the main function of Havmor is

to produce the products and supply to the consumers according to their needs and taste. Thus,

in Havmor production department is the most important department.

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2.1 MAIN PRODUCTS OF THE COMPANY

Ice creams found in different styles like:

King Cones

Big Cups

Small Cups

Party Pack

Family Pack

Juices

Candy

Dolly

Kulfi Corner

Roll cut

Novelties

Cassata

Premium Pack

Kids Special

Havmor Special, etc.

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2.2 RAW MATERIAL USED

There are various types of raw materials that are used in Havmor during Ice Cream

making process. Major Raw Materials used for making Ice Cream are:

Milk

Cream

Skim milk powder

Dry fruits

Fresh fruits

Flavours

Sugar

Stalulizer

Emulsifiers agents

Chocolates

All the materials used in process are managed by Storage Department. And their

quality is checked by Research and Development Department.

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2.3 PRODUCTION PROCESS

PASTEURIZATION TANK:-

Here the raw materials like milk, cream, powder, etc are mixed. Milk is pasteurized

here. Mixing of Pasteurizers is done at 8-10C, Butter is melted at 40C, All ingredients at

55C, Sweetening agent is added at 65C, and pasteurization is done at 75C. The mix is

kept at 75C for 15 mins and then filtration of mix is done.

HOMOGENATOR:-

After being pasteurized at 75C, the mix is transferred to this tank. Here, this mix is

kept under the pressure of 50 cem square. This increases the viscosity of the mix. Here the

breakdown of the fact glucose is done up to micron size. The Homogenator tank is the

heart of the process.

CHILLER:-

In the chiller, the chilling of the mix is done from 75C to 24c.

STORAGE TANK:-

After being thoroughly mixed, the mix is stored in this tank. The mix is stored here is

called the basic mix and is used for all ice creams. The basic mix is taken to each section

for different types of Ice Creams, whether it is cup, candies, cones, etc.

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The general process of cleaning is as follows:

Flushing with tap water.

Cleaning with hot water at 10C for 10 to 15 mins.

Alkali cleaner for 20 mins at 10C.

Flushing with hot water.

Senttice the whole equipment with hardaphire solution of 200 ppm for 20 mins.

FLAVOURING TANK:-

Required quality of basic mix is transferred in Flavouring tank additions of essence

and Flavouring Color is done as per the recipes of particular ice cream.

CONTINUOUS FREEZER:-

After starting the continuous freezer, the ice cream will come out within 25 seconds at

the temperature of 8C to -5C. If the recipes includes additions of nuts it is done through

fruit feeder which is outside the continuous freezer and before the final place of coming

out of the ice cream and in case of Sunday’s different flavor is added through nozzles

through which more than two flavors can be added. After coming out from continuous, the

ice cream is picked into different boxes, cups, etc. This process is done manually.

HARDENING TUNNEL:-

These packets are kept in hardening tunnel to achieve ITC.

COLD STORAGE:-

After achieving ITC in hardening tunnel, ice cream is transferred in to cold storage and

taken as per the market demand.

Yummy Ice Cream is now ready to dispatch.

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2.4 LOCATION OF THE UNIT

The location of plant or industry means to scientific choice of a region or specific sight

in a region where the business unit is to situate. The main object of an industry concern is to

maximize profit through minimization of production and distribution cost. The objectives are

realized only if the firm is located at a place which offers all economies of production and

distribution.

* Factor responsible for plant location are:

1. Money, Material

2. Man power, Market

3. Motive power, Management

4. Machinery, Means of Communication

5. Momentum to an early start

2.5 TIME KEEPING SYSTEM

Time keeping system for industrial staff

Shift Timings

1st shift ~ 8 AM TO 4 PM

2nd shift ~ 4 PM TO 12 Mid Night

3rd shift ~ 12 Mid Night to 7 AM

Working Hours for office staff: 9.30 TO 6.30

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2.6 INNOVATIONS

Quality is undoubtedly very important to establish and retain one’s status in a

competitive environment. But equally important is innovation – constantly coming up with

something new to maintain an edge over the competition. Hence, creativity is at the forefront

of our activities. Most of our innovations have been based on the consumer feedback we have

received from our ardent fans. To please them, to date we have launched over 200 flavors in

600 pack-types and forms. People eagerly await our flavor of the quarter, which has been an

on-going event over the years.

Here is a representative sample of a few of their innovations:

They are the first ones to introduce Dairy Fresh – an all natural ice cream which

contains no additives, no preservatives, no synthetic Colors or flavour. Nothing but the

pure, natural goodness of milk, fruit and nuts.

They launched many dry fruits based ice creams, an assortment of traditional Indian

ice cream form, which otherwise had to be bought just prior to consumption, and that

too from vendors whose quality often left a lot to be desired.

They even introduced the Sorbet – a fruit juice based frozen dessert.

To match their unique products, they have often gone in for unconventional and

creative packaging. Like the time when we filled Mango. Orange, Sitafal, Sweet Lime.

Ice creams in the intact skins of their fruits. It was a big hit at social gatherings and

special occasions.

All their innovations are based on a single guiding principle i.e. “Give the consumer what

he likes and wants, and not what we want him to like?”

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2.7 PRODUCTION DETAILS

Production means to convert the resources or wealth obtained from nature in to

production. Which can satisfies human needs by processing it through manpower or machine,

In short the creation of an object or services making necessary changes in the shape, size,

weight and prospects of the raw materials through process.

There are several sections in the unit, in the sections one by one steps about the

procedure of product can be seen the details about the sections are as follows.

1) MAINTENANCE UNIT:

This is the main unit of the company. The heavy machines are installed here the unit 3

compressor which help in codling the ice-creams. There are generators also because in case of

a power failure, it has to be switched on to keep the product fresh and cold. This unit also

contains the boilers.

2) MANUFACTURING UNIT:

In this plant all the required raw material are mixed and then it is processed the raw

material goes through many Thom formations before it becomes the final product. The actual

processes of making ice-cream starts and after ice-cream are manufacture and they are to the

cold storage.

3) RAW MATERIAL UNIT:

In this unit all the raw material, such as milk powder, dry fruits like kaju, chocolates

etc. are thoroughly inspected and checked and coasted in oven before sending it for flavoring

on essentially.

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4) COLD STORAGE UNIT:

The prepared ice-cream comes to the cold storage through a tunnel pipe. The whole

process is automatic, the temperature in cold storage is between -25c to -27c ice-cream is

taken out of this unit as per the order.

5) ETP UNIT:

ETP means effluent treatment plant there all the waste water is treated thoroughly and

disposed off. The treatment is very much necessary because of the government policy that the

chemical before disposing.

6) LABORATORY:

The laboratory of Havmor takes care of hygiene of the products each and every

product is checked and certified over here before being launched, At most each taken on

aspect of quality.

7) PACKAGING UNIT:

In this section the packaging of the product are done. The manufacturing date and best

before information are labeled over here. Besides it is the store room where the packets are

and used where necessary.

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2.8 STORES MANAGEMENT

Stores management is necessary for any scale of unit because whenever the need arise

it could be provided by the store department.

There is a separation for storage in Havmor. The departments like production, research

and development department are required to inform to the storage department whenever the

need arises and on this basis purchase requisition is made and given to purchase department.

2.9 PLANT LAYOUT

Layout problems are fundamental to every type of organization and are experienced in

all kind of marketing. Housewife must arrange her kitchen; retailer must arrange their

facilities, not only the departments within the factory but also the plant, stores and services so

as to achieve flow of products.

Once a decision about location of a plant has been taken, next important problem

before the management is to plan suitable layout for the plant. Efficiency and performance of

good machines and sturdy buildings depend to a great extent on the layout of the plant.

According to James Handy, “Layout identically involves the allocation of space and

arrangement of equipments in such a manner that overall operating cost is minimized.”

There are mainly 3 types of layout…

1. Process layout or layout by function

2. Product layout or line production

3. Fixed position layout.

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2.9.1 PROCESS LAYOUT :

This is typical job-shop type of production, where the equipment performing similar

operation is grouped together. In this layout more emphasis is given to specialization or

functional homogeneity on the various components of the system. All operations of similar

nature & grouped together in the same department or part of the factory. E.g.; grinding

machine is located in any are, etc.

2.9.2 PRODUCT LAYOUT:

The equipment here is laid out according to the sequence in which it’s used for making

the product for this type of layout if two products are tobe made is called for two separate

layouts.

2.9.3 FIXED POSITION LAYOUT:

In this layout, the material remains in a fixed position, but the machinery tools, workmen, etc.

are brought to the machines.

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CHAPTER-3

PERSONNEL MANAGEMENT

As the term applies, personnel management is the management of human resources in

an organization and is concerned with the creation of harmonious working relationships

among its participants and bringing about this utmost individual development, such

management is concerned with leadership in both groups and “individual relationship” and

“personnel management.” It effectively describes the process of planning and directing the

applicants, development and utilizations of human resources in employment. In fact,

personnel management undertakes all those activities, which are concerned with human

elements in an organization. Whatever functions are listed therein, the main objectives of

these functions are to bring together expertise in a scientific way and to create that motive, a

group to achieve its goals economically, effectively and speedily.

According to Havmor, HRD plays a major role in conducting specialized training

programs, encouraging innovative ideas, inoculating willingness to accept change and

rewarding out this with an incentive package. They believe that their plants are most valuable

assets who have made Havmor what it is today, and it is they who will take them for beyond

the horizon, the days to come.

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3.1 RECRUITMENT, SELECTION & INDUCTION

The recruitment & selection process is intimately connected with overall manpower

system.

It is the primary duty of the personnel department to procure and maintain the adequate

qualified working force of various personnel necessary for running the organization. It is very

important function even for the establishment and development of business.

3.1.1 RECRUITMENT:

Recruitment refers to attempt of getting interested applicants and providing a pool of

prospective employees so that we can select right person for right job. In Havmor the

recruitment sources can be classified into two broad categories.

For recruitment of skilled workers, advertisement is given in newspapers and unskilled

workers are recruited from local areas.

3.1.2 SELECTION:

Selection is the process in which candidates for employment are divided into two

classes – those who are to be offered employment and those who are not.

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The selection process of Havmor Co. is done as under…

* Preliminary Interview.

* Application.

* Interview.

* Final Selection.

Following are the broad headings under which the qualities desirable for a suitable

candidate may be grouped.

* Educational and technical qualifications

* Intelligence

* Responsibility involved and initiative required

* Ability to command, to obey

* Health and physique

* Ability to work in the conditions in which the job is performed.

3.1.3 INDUCTION:

Induction refers to the job and organization. The purpose is to make the employees

feel at home and develop a sense of pride in the organization and commitment to the job.

Induction is a technique by which a new employee is rehabilitated into the changed

surroundings and introduced the practicing policies and purpose of organization.

Induction of employee is done by every department for every week after selecting of 2

to 3 days.

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3.2 TRAINING & DEVELOPMENT

3.2.1TRAINING:

Training is the organized procedure by which people learn knowledge or skill for a

definite purpose.

In this modern era, training is very important. In Havmor Ice-creams, there is also

modern type of machines which follows modern technology. Many workers don’t know to

use them. So, they teach them how to use machineries.

3.2.2 DEVELOPMENT:

Development is an organized and planned process and program of training and growth

by which individual manager or executive at each level of management hierarchy gains and

applies knowledge, skills, insight and attitudes to manage workers and the organizations

effectively.

In Havmor Group of Co. HR coordinates the training. Sometimes staff is send outside the

company for training purpose or experts are called up to give training to the employees.

Company also gives training to their workers according to the job. Generally, training for 7

days is given to workers.

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3.3 PROMOTION DEMOTION & TRANSFER POLICY

3.3.1 PROMOTION:

Promotion is the advancement of an employee to better job – better in terms of

responsibility, more prestige or status, greater skill, higher grade & salary and increased

privileges, etc.

Havmor Co. also gives promotion on the basis of all over performance basis. Company

also considers merit basis and seniority basis. Top level management gives promotion.

3.3.2 DEMOTION:

Demotion has been define as the assignment of an individual to a job of lower rank

and pay usually involving lower level of difficulty and responsibility. In other words,

demotion refers to the lowering down of the status, salary & responsibility of an employee.

Havmor Co. gives demotion when any employee is not able to do his work by any reason.

3.3.3 TRANSFER:

Transfer refers to changes in jobs that involve little or no change in status,

responsibility and pay.

Havmor Co. does transfer to their employee. Employees are transferred from one shift

to another shift, as per the requirement.

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3.4 GRIEVANCES HANDLING PROCEDURE

Grievance is difficult to define, personnel experts however, have attempted to

distinguish dissatisfaction, complaint and grievances. Generally speaking, dissatisfaction to

any staff or filling of discontent, whether it is unexpressed or explicitly expressed. A

dissatisfaction which is orally made known as complaint becomes a grievance when this

dissatisfaction, which is usually related to work is brought to the notice of management.

A complain by an employee and claiming unfair treatment.

In all the companies grievances always exist irrespective of size and unit. In some

employee have complaints against employees. The grievances may be real or imaginary valid

or invalid.

In Havmor, there is specific grievance handling procedure. Whenever, there is any

grievance, the employees meet first to the supervisor and if not solved then employees meet to

the concerning department head and management tries to solve the grievance by considering

the acceptable demand of the employees and the workers also keep themselves ready to

achieve the targets disclaimed by the management.

3.5 PERFORMANCE APPRAISAL

In the organization context performance appraisal is a systematic evaluation of

performance by supervisors or other familiar with their performance. It is also described as

merit rating in which one individual is ranked or market in comparison to others.

Performance Appraisal is a systematic evaluation of the individuals with regard to his/her

performances on the job and his potential for development.

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In Havmor, the performance appraisal is done by the superior or superior will fill the

form, it is done once in a year and accordingly increase in salary is given. Motivation to

workers done once in 2 months.

3.6 PERSONNEL RECORDS

A Personnel record is piece of writing in a chart or which provides ready information

and which preserve evidence for future reference or use.

Havmor Co.’s style of keeping personnel record is very scientific and systematic. The

company keeps one file for each employee. In this file, you can get each & every information

about employee. The information like wages, salary, training & development, recruitment &

selection, pension, provident fund, discipline, past experience, birth date, blood group,

qualifications, behavior of employee in the company, etc. are noted in this file.

3.7 WAGES & SALARY ADMINISTRATION

Wage and salary administration is necessarily the application of a systematic approach

to the problem of ensuring that the employees are paid in a logical, equitable and fair manner.

Its basic purpose is to maintain and establish wage and salary structure. Its secondary

objective is to establish equitable labor cost structure. It is concerned with financial aspects of

needs, motivation and rewards.

Havmor Co. gives wage and salary to the workers according to their work and ability.

In this company, wages and salary are given monthly to the workers. Sometimes, company

gives wages on the basis of contract to the workers.

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Salary to the clerical, administrative and professional employees is paid on the 1st of

every month. In Havmor, till now there is no child labor. The average eages provided to labor

is Rs. 2400 per month.

3.8 TOTAL NUMBER OF EMPLOYEES

The company has total staff strength of 420.

Which includes 200 unskilled workers and 220 skilled?

The company recognizes the important role that its employees used to play the growth of

various business activities.

3.9 PROVIDENT FUND SCHEME

The Provident Fund Act was passed in 1952. A special reserve fund was made for

making the payment to out going members.” The Provident Fund Act 1952 was amended in

1971 to provide for the benefit of family pension to the members of deceased in case of their

death, while in service.

In Havmor Group, company provides provident fund to its employees. The scheme

covers each and every employee of the company. PF @ 12% is given to employees in that

8.33% is pension and 3.67% is PF. It affect instantly to financial condition to each and every

employee. It makes bright future for employees.

3.10 EMPLOYEES BENEFITS & SERVICES

The services or benefits, which are given to the employees more than the salary comes

under employee’s services scheme.

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In Havmor following benefits are provided to the employees:

Uniform.

Safety Facility.

Medical Facility.

Social Welfare.

Canteen Facility.

Employees are also provided previous leave, casual leave, and sick leave. Employees in

Havmor are also provided the benefits like PF, ESI Scheme, etc.

Safety facility is provided to workers as in food items utmost safety is required and

medical check up to the workers is also done as and when required.

3.11 TRADE UNION

The scenario of exploitation of employees by employers led to the birth of unions and

introduced the ear of government regulation and control over employment relationship. Now,

unions are a part of modern industrial societies. There are various explanations about the

place and role of unions. These points to a commonalty through union seek to pursue and

further the interests of employees as a collectively.

“A track union is any combination of persons, whether temporary or permanent,

primary for the purpose of regulating the relations between workers and workers, and for

imposing restrictive conditions on the conduct of any trade or business, and includes the

formation of two or more trade unions.” – Section 2 (B) of Trade Union Act, 1920.

In Havmor, the relation of industry with trade union is good. It generally deals in

collective bargaining for doing negotiations.

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CHAPTER-4

MARKETING DEPARTMENT

Marketing is so basic that it cannot be considered a separate function. Marketing has

been defined in various ways. The definition that serves are purpose by which individuals and

groups obtain what they need and want through creating, offering and exchanging products

or value with others.

* Marketing is a total system of business, an on going process of:

Discovering and translating consumer needs and desires in to products and services.

Creating demand for these products and services.

Serving the consumers demand with the help of marketing channels, and then in turn

Expanding the market even in the face of keen competition.

“Marketing management is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges that satisfy

individual and organizational goals.”

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4.1 RESPONSIBILITY FUNCTIONS & AUTHORITY OF INDIVIDUALS

AT DIFFERENT HIERARCHY LEVELS

GENERAL MANAGER’S RESPONSIBILITY & AUTHORITY

* Sales Administration.

* Advertising and Media.

* Product Management.

* Recruitment and Selection at higher Authority Level.

* Designing Sales Promotional Programs.

RESPONSIBILITIES & AUTHORITY OF SENIOR SALES

MANAGER

* Generate Sales.

* Assigning targets.

* Recruitment.

* Maintaining relationship with Distributors and C&F Agents.

* Assisting in designing of Promotional Programs.

RESPONSIBILITIES & AUTHORITY OF SALES EXECUTIVES &

SALES COORDINATORS

* Appointing Distributors / Dealers.

* Provide Machines.

* Handling Dealer / Distributor Complaints.

* Give the promotional tools to the Dealers & Distributors.

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* Dealer / Distributor Communication.

4.2 PRODUCT PLANNING

Planning is to decide in present, what to do in future? Havmor Co. also develops new

products and steps of product development are as under…

Research for a new product sometimes is based on seasons & market demand.

Planning of product before 3-4 months in advance.

Quality control department check the product quality.

Product management department approves a new product.

Product planning for promotions.

Final label of product.

Commercialization of new product.

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4.3 BRANDNAME AND LOGO

4.4 MARKETING RESEARCH

Marketing research is the systematic collection, design, analysis and reporting of data and

finding relevant to a scientific marketing situation facing the competition. Process and

marketing research followed in Havmor.

Defining the problems and research objectives.

Developing the research plan.

Collecting the information.

Analyzing the information.

Presenting the findings.

Havmor Company does marketing research through his sales staff. Sometimes Havmor

Company appoints marketing intelligent staff for research in different areas.

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4.5 MARKET SEGMENTATION

Market Segmentation is a full larger group having similar wants. Segmentation is

consumer oriented marketing strategy. Market segmentation gives the formal

segmentation to the fact that wants and desires of consumers diverse and we can orient

specific category or the segment of the market, so that supply will have the best

correlation with demand. Varied and complex buyer behavior is the root cause of market

segmentation.

Market consists of buyers and buyers differ in one or more respects. They may differ

in their wants, purchasing power, geographical locations, buying practices. Any of these

variables can be used to segment a market.

The ice cream market is segmented in following three ways:

4.5.1 BASIS OF FLAVORS:

Vanilla, Strawberry, Chocolate, Mango, Butter Scotch, Kesar Pista, etc. Vanilla,

Strawberry and Chocolate together account for about 70% of the market followed by

Butter Scotch and other fruit flavors.

4.5.2 BASIS OF PACKAGING:

1. Cones.

2. Cups.

3. Sticks or Candies.

4. Take away.

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4.5.3 BASIS OF CONSUMER SEGMENT:

On the basis, the market is divided into four segments,

1. Impulse segment.

2. Retail.

3. Institutional / Catering.

4. Parlors.

Retail and impulse together account for 70% of this market.

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4.6 DISTRIBUTION CHANNEL

In the field of marketing, channels of distribution indicates the routes of pathway through

which goods and services flow or move from producers to consumers. The route of channels

of distribution includes the manufacturer and the consumer as well as all intermediaries.

These components are linked in the channel system by one or more of the marketing flows,

such as transfer of title of ownership, physical distribution of merchandise, transfer of title of

ownership, physical distribution of merchandise, transmission of marketing information and

the flow of money in the form of payment of prices and other dues.

The channel of distribution of Havmor is as follows:

Manufacture

C & F Agents

Distributors

Dealers & Retailers

Customers

The above channel strategy defines the channel members. The finished goods first go to

C&F Agent is not available then the finished goods directly go to Distributors.

HO (i.e. Ahmedabad Office) constantly watches the moments the orders given in Dispatch

Department by various C&F Agents and Distributors.

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Havmor has 32 distributors and 4000 retail outlets. The network is kept alive by large flat

of refrigerated vehicles; refrigerated equipments and retail freezers are sources from world

leaders in technology, so as to deliver quality products to the consumers, which is a

commitment at Havmor.

Marketing Department also coordinate with Dispatch Department to get the order from

C&F Agents and Distributors, and try to see the moments of dispatch that orders as early as

possible by clubbing various distributors in one route. And at last dealers get the goods from

the distributors.

4.7 PHYSICAL DISTRIBUTION

The marketing process is not complete simply by creating superb product and by creating

the consumer through aggressive salesmanship. Delivering the product to the consumer at the

right time and right place is equally important function in marketing. In process of marketing,

this vital function is called physical distribution.

Physical distribution means the process of delivering the product to the user or consumer

promptly, safely and in time.

The major components of physical distribution of Havmor:

Warehousing

Inventory

Order processing

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4.7.1 WAREHOUSING:

As ice cream is a perishable product and it must be kept in cool place to maintain its quality

for few days, Havmor has cold storages at different ends. These ends are factories, C&F agents,

Distributors and Dealers. The temperature kept in these storage houses is as low as –25C.

4.7.2 INVENTORY:

For the raw material, Havmor keeps the inventory. The inventory of the packaging

material is kept as low as possible and according to the demand forecasted and growth rate of

the market. Ice cream is product of impulse category that requires proper storage, to keep it in

a proper condition. The production and consumption system also such that, the production is

done through the whole year and main demand is in summer season. So every company has to

store ice cream properly. Company has enough storage facility at their all plants, and all C&F

agents have their own cold storage facility, so they keep the stock as per their requirement i.e.

at the time of promotional scheme period or in summer they maintain high stock, the C&F

agent carry the stock in bulk and they supply the ice cream to distributors or dealers, who also

have proper freezing facilities.

4.7.3 ORDER PROCESSING:

Havmor has defined MOQ (Minimum Order Quantity) for the distributors to make order

to the company. As far as order of the dealers are concerned that is the headache of the

distributors. Here, the job of the Havmor’s sales staff is to assist the distributors is selling the

ice cream. Havmor states their physical distributor’s objective, “getting the right goods to the

right place.” No physical distribution system can simultaneously

maximize customer service and minimize distribution cost. Maximum customer service

implies large inventories, transportation and few warehouses.

The designing distributors system is to study what the customer wants and what

competitors are offering customer, interested in several things such as on time delivery.

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Havmor’s willingness is to meet customer needs, careful handling of merchandise to take

back defective goods and re-supply them quickly and to carry inventory for customer.

4.8 PACKAGING & TRANSPORTATION

4.8.1 PACKAGING:

Ice cream consumers in India are generally children and young people. To attract these

consumers ice cream manufacturers try hard to make their packaging attractive.

Packaging plays a large role in marketing of ice cream products. Many different packing,

sizes and designs can be chosen along with type of packaging material.

Ice cream is marketed in three types of packaging.

The most popular is a cup of 100-150 ml sold @ Rs. 8-15 price range. Ice creams at

this price range are generally brought for immediate consumption. They are available

everywhere from big super market to local retailers.

Bar, sticks and Cones represent another ready-to-eat market and are priced @ Rs. 5

and is very popular with kids and forms major portion of the ice cream sales.

Party pack and Family pack are in much use now a days. These are used for parties

and in restaurants. Though outside attractiveness is not very important but the size of

the pack and handling comfort is important.

4.8.2 TRANSPORTATION:

Ice cream requires very low temperature in terms of -25C, so the Van used for the

transportation is having the chillers. Company is acquiring Van on the contract basis.

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CHAPTER-5

SALES DEPARTMENT

The sales manager is the head of the sales department and he is guided in his policy by

the managing director of the company. Thus, the sales manager must be a man of initiative

and ready to propose new ideas as opportunity comes. He must be active, energetic and

persistent in order to cope up with the work involved which is sales promotion. Exploring

new possibilities of obtaining customers, market and new goods. He must be energetic and

put new life and interest in his sales staff. Sales executive should be a good judge of human

nature, a good mixer and know how to handle men not only his customers but also his

competitors in the market. He must be a good organizer and know the psychology of the

group to whom he serves.

It is true that a sale is the last activity of an organization but it is not the less important

function. The sales executive in additional to being competent the techniques and procedure

of selling the product, is an executive directing the activities of others. He has to co-operate

with the rest of the staff for new products and new uses of the commodity.

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5.1 SALES ORGANISATION

The sales department should co-operate with design department so that the product

designed should meet the exact requirements of the customers and the important factors like

efficiency,sturdity,low cost of maintenance, safety for the operator ,ease of handling and good

luck are to be achieved and the sales department has to co-operate with the production

department to see that the quality is maintain and the rate of production is according to the

schedule with planning department to prepare the sales programmed on which the entire

planning will be based ,with the accounting department to bring the prices down and there by

to increase the turn over and fix selling price. With the accounts dept. to give complete data

and with the personnel dept. to procedure the efficient salesman.

5.2 SALES BUDGET

5.2.1 SALES FORECASTING & DEVISING SALES BUDGET:

As Ice Cream is perishable good and it requires proper freezing to maintain Proper

quality, which is very costly. So sales forecasting is very important to reduce the cost of over

production and maintenance.

Havmor considers following factors for forecasting the Sales:

Observing Market Trends.

Past figures related to consumption pattern.

Deciding the future strategy.

Using the above factors, experts in the sales field use their expertise and give their

opinion for the next year’s sales. Thus, Havmor use Jury of Expert Executive Opinion.

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5.3 PRICING POLICY

A price policy is the standing answer to the firm to recurring problem of pricing. It

provides guidelines to the marketing manager to evolve appropriate pricing decisions. There

are many methods of deciding pricing. It depends on the organization that which method it

wants to adopt.

Policy on pricing relative to costs:

Havmor follows Full Cost / Cost plus pricing. Full Cost pricing, no sale is made at a

price lower than that covering total costs, including the variable costs and allocated fixed

costs.

For Example,

X- Cost of Production

X+Y- Cost of goods sold

X + Y + 6% - Cost of goods sold + distributor’s Margin

X + Y + 6% + (12% to 20%) = MRP – Dealer margin added to above (Consumer Price)

5.4 CHANNEL OF DISTRIBUTION

Every producer seeks to link together the set of marketing intermediaries that best fulfill

the firm’s objectives. This set of marketing is called the channel of distribution.

A distribution system is key of external resources. Normally it takes years to build and it is

not easily arranged. It ranks in importance with key internal resources such as manufacturing,

research, engineering’s and field sales personnel and facilities.

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The channel of distribution of the company has the following way:

Manufacturer

Agents

Dealers

Retailers

Customers

5.5 ADVERTISING

It is defined as any paid form of non-personal presentation and promotion of ideas,

goods and services by identified sponsor. It is impersonal salesmanship for mass selling, a

means of mass communication.

Havmor Company has used many media of advertising such as press media, which

includes newspapers and magazines; outdoors advertising that includes posters, boards and

electric display, multimedia including web site, etc.

Product boreal magazine

They have attended an exhibition in world level and in India more than 50 times.

In product today magazine

Tender world

In industrial express

Machine tools

Local channels

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5.6 SALES PROMOTION

Sales promotion is a vital bridge or a connecting line removing the gap between

personnel selling and advertising the two wings of promotion. The sale of a product has to

be promoted or encouraged through a No. of influences at the point of purchase where

retailers and prospective customer meet face to face. Sales promotion may stimulate boost

consumer denying at the point of sale or improve dealer effectiveness at the retail outlets.

There are various sales promotional tools such as:

Samples, coupons.

Price packs.

Premiums.

Contest.

Free trials, Price off.

Allowance of goods.

Havmor company has done all promotional activities with a view to increase sales of

products and to attract a new customer to company’s product. Company has provided many

offers such as “Buy one- Get one free”, “Buy family pack and get attractive gift free”, etc.

Company has also done dealers promotional activities include cash discount on purchase,

display and advertisement allowances, etc.

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CHAPTER-6

FINANCE MANAGEMENT

Financial Management is an integral part of overall management. It is not totally

dependent area. It draws heavily on related disciplines and fields of study such as economics,

accounting, marketing, production and quantitative methods.

The term “nature” as applied finance refers to its relationships with closely related

fields of economics and objectives. In the early years of its evolution it was treated

synonymously with the raising of funds. Now in addition to it is procurement of funds,

efficient use of resources is universally recognized.

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6.1 FINANCIAL REVIEW

In spite of staff competition, particularly in Ice Cream Industry, Havmor Company’s

TOTAL SALES at the end of the financial year 2006-2007 is Rs. 6167 Lacs earned during

previous year is Rs. 4929.8 Lacs.

Company has earned the Gross Profit of Rs. 404.17 Lacs before depreciation and

financial expenses during the year ended on 31st March 2005 as compared to 424.25 Lacs

earned during the previous year.

Net Profit is Rs. 31.8 Lacs during the year ended on 31 st March, 2005 as compared to

Rs 55.35 Lacs earned during the last year.

6.2 ORGANISATIONAL STRUCTURE

Finance is the foremost requirement of any firm, finance decision constitutes one of

the critical and key decisions of any department. The duty of General Manager is to handle

accounts and overall co-ordination of finance department. All major decisions are taken by

Managing Director. Plans are made by General Manager and it is approved by Managing

Director. Managing Director is responsible for any kind of the result to the Directors of the

Company.

6.3 FINANCIAL PLANNING

Finance is an important function of business. The application of planning to the

function is financial planning. It involves the policies, determination of objectives and

procedure relating to the finance function. Financial planning is an important function of a

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financial manager whether a business is big or small this function has to be performed. It is

necessary to do financial planning for an existing as well as new business.

A financial plan is a statement estimating the amount of capital and determining its

compensation and another important aspect of financial plan is to determine the pattern of

financing.

Before raising finance it is essential to make estimates for long term as well as short tern

financial needs.

Long term financing is generally needed for fixed capital requirement i.e. purchase of

fixed assets.

Short term finance is generally needed for working capital requirement i.e. marketable

securities, debtors, etc.

In Havmor, the financial planning is done for long tern or short term financial

requirements. Financial planning is necessary to reduce the cost of finance and all the long

term and short term finances is raised through family funds and overdrafts. The requirement

of all the long term is also fulfilled through bank as and when needed.

6.4 CAPITALISATION

The term capitalization refers to the process of determining the plans if financing. It

includes not merely the determination of the quantities of finance required for a company but

also the decision about the quality of financing. Capitalization includes following aspects:

Estimating the total amount of capital to be raised.

Determining the types of securities to be issued.

Determining the composition or proportion of the various securities to be issued.

Capitalization comprises of a company’s ownership capital, which includes capital stock

and surplus in whatever form it may appears and borrowed capital which consists of bonds or

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similar evidence of long term debt. In Havmor, the capitalization includes both the aspects i.e.

short term as well as long term.

6.4.1 CAPITAL STRUCTURE

In order to run and manage a Company, funds are needed right from the promotional

stage up to end. Finance plays an important role in company’s life. If funds are inadequate,

business sufers. It is therefore necessary that correct estimate of current and the future need of

capital be made to have an optimum capital structure, which shall help the organization to run

its work smoothly and without any stress. Estimation of capital requirements is necessary, but

the formation of capital structure is important.

The capital structure is made up of debt and equity securities and refers to permanent

financing of a firm. It is composed of long term debts, preference share capital, and

shareholders fund.

Capital structure of Havmor as on 31.03.2010

Particulars Amt (Lacs)

Share Capital 359.5

Reserves and Surplus 980.5

Secured Loans 1525

Unsecured Loans 383.5

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6.4.2 DEPRECIATION POLICY

Depreciation is an expense item. It is charged on fixed assets. Fixed assets are those

which are of material value, meant for resale and having fairly long life and are used in the

business.

Methods of depreciation are as follows:

Straight line method.

Diminishing balance method.

Annuity method.

Depreciation fund method.

Insurance policy method.

Depletion method.

Machine hour rate method.

In Havmor depreciation is on Fixed Assets is provided on Straight Line Method.

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6.4.3 MANGAMENT OF WORKING CAPITAL

Capital required for a business can be classified under two main categories.

1. Fixed Capital.

2. Working Capital.

The concept of working capital is further divided into two broad parts they are…

Gross Working Capital.

Net Working Capital.

Gross Working Capital =Total Current Assets

Total Current Assets= 2702.4(Rs in Lacs)

Total Current Liabilities= 1097.7 (Rs. In Lacs)

Net Working Capital= Current Assets – Total Current Liabilities

= 2702.4 – 1097.7 (Rs. In Lacs)

= 1604.7 Lacs

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CHAPTER-7

SWOT ANALYSIS

STRENGTHS

Strong market in Gujarat.

No. 2 in Gujarat

Varieties of Ice Creams

Experience of more than 60 years

WEAKNESS

Less use of advertising medium

Lack of Professionalism

Prices are somewhat high as compared to Amul.

OPPORTUNITIES

Ability to increase production due to installation of new technology

To sell their Ice Creams in other states

THREATS

Increasing number of competitors

Increasing demand of Amul

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CHAPTER-8

CONCLUSION

After visiting Havmor, it seems that Ice Cream is the King of Gujarat. I felt glad of

being a part of it. The visit to such a huge and reputed industry has improved my practical

knowledge of working in industry and its various departments.

Havmor is an industry that is very well equipped by the latest technology and efficient

human resource.

After studying the marketing strategy of the Havmor, I conclude that they are horse for

their competitors and progressing towards success though it has two strong competitors in

Gujarat, but it has already planned to give them a tough challenge in the year to come.

It is difficult to comment right now; weather Havmor will be able to make their

success inroads but its new innovative marketing strategy have given a tough challenge to its

competitors. I hereby wish them luck for the future.

I conclude that the work of preparation project report is glared with co-operation,

unity and team work. Once more I am very thankful to the management of Havmor Food Pvt.

Ltd., for making our report both beautiful & comfortable.

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BIBLIOGRAPHY

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Sr No. Title of the book Author Publication

1. Personnel management C.B. MemorialHimalaya Publishing

House

2.King’s marketing mgt.

[2nd Edition]

M.M.Varma &

R.K. Aqarwal

King book Educational

Publishers’

3.Financial mgt.

[3rd Edition]

M.Y. Khan &

P.K. Jain

Tata McGraw Hill

Publishing co. ltd.

4.Business organization

& managementM.C. Shukla S. Chand & Company

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