Report of Summer Training Conducted at

BIKANERVALA FOODS PRIVATE LIMITED

Submitted in partial fulfillment of the requirements
for the award of the degree of

Master of Business Administration (MBA)

To
Guru Gobind Singh Indraprastha University, Delhi


Guide: Submitted by:
Dr. D K Choudhary Ishpreet Singh
Roll No. -17619103913
Batch (2013-15)





Gitarattan International Business School
New Delhi -110085
Batch 2013-15

CHAPTER -1
PROFILE OFCOMPANY

1.1 Nature of the Organization
Bikanervala is one Indias most prominent families in the business of
traditional hospitality products like sweets and namkeens.
Bikanervala Foods Pvt. Ltd. is an ISO 9001:2000, HACCP and SQF 2000
certified company with a chain of 88 outlets in India and aboard, serving
vegetarian North Indian, South Indian, Continental, Chinese cuisine and
Fast Food along with a vast variety of traditional Indian sweets and snacks.
Bikanervala is running outlets at Delhi and NCR, Agra, Lucknow, Meerut,
Allahabad, Ahmadabad, Hyderabad and Jalandhar. Currently, it has 18
company-owned and 20 franchise outlets. The total business generated
from franchising stands at 50 per cent.
The USP of Bikanervala is committed to hygiene and standardized quality.
It has achieved the unique distinction of becoming the first Indian company
in its category to have been granted ISO-9001:2008 certificate, an
internationally accepted Benchmark in more than 90 countries.
Recently Bikanervala got HACCP certification & SQF quality standard.
Bikano a Packaged Food Division of Bikanervala is an international brand
of packaged Sweets, Namkeens, Snacks, Papad and Sherbets; all
manufactured to the world standards of hygiene and quality. Bikano prides
itself in successfully integrating ultra-modern technology to manufacture
its traditional food products. Our products are quite well known for being
healthier than the other available oily snacks in market because our salty
snacks and namkeen are fried in machines which are programmed by
Programmable Logic Controllers (PLC). That is why Bikano's packaged
products have always been a big hit and growing rapidly among consumers
in both India and abroad.
Today, Bikano's business thrives on consistent quality and constant
innovation, following which the company utilizes modern technology for
processing and packaging. This helps the company to retain original flavor
of manufactured products for maximum time period. Our State of the art
canning and packaging technology ensures that the products have longer
shelf life without harming their freshness. The 3-ply laminate packaging
extends the shelf life up to a year and our PLC based FFS machines ensure
fully automatic packing without direct hand touch. There is product
weighing system also in place to ensure the weight accuracy for each pack
and their food products like namkeens, sweets, cookies and sherbet have
made it the most preferred in between meal snack all over the world.
Bikano has always been in the forefront in adopting new technology and
procedures for its products.
1.11 History
In 1950, a large family of traditional Halwais (Food Processors) from the
famous city of Bikaner decided to explore business opportunities beyond
Rajasthan, its traditional stronghold, and some of them migrated to Delhi .
They brought with them a treasure of traditional recipes perfected by their
forefathers, exotic ingredients and experience in the art of making sweets
and Namkeens. The beginning was from 'Moti Bazar' of old Delhi. The
Delhiwallas relished their Bikaneri Bhujia and Rasogollas and they fast
grew to a regular sweets shop in the historic Chandni Chowk. Soon the
love and affection of Delhiwallas earned them the name
'BIKANERVALA'.
Tradition taste that goes back several generations, recipes that have been
handed down as precious family treasures from one generation to another, a
definitive will to bring good taste to a larger audience and an almost
missionary zeal to create an everlasting imprint.
Fifty years ago, two brave sweet makers made the journey from their home
town Bikaner to Indias bustling capital city. They brought with them
secrets of sweets making as their capital and an enthusiasm to present a
very different culinary experience to the people who till now were exposed
to very different kind of savories.
They started small with a shop in Old Delhis Moti Bazaar. Soon, their
unique taste of the Bhujiya and Moong Ki Dal ka Halwa found many
discerning patrons. Their reputation spread like the lavish aroma of their
credible creations and slowly but surely Bikanervala grew into a name
easily recalled and referred for every celebrations or even a small snack.
The main ingredient of their success was the untiring work ethic and
unwavering commitment to quality that the family blended so well with
their traditional forte. In its own little way, Bikanervala has contributed to
the history of Delhi. Around thirty two years ago, the introduced the city to
its first, incredible taste of Kaju katli a sweet that is almost for every
celebration now.

1.12 Geographical Areas Of Operation Of The Company
The branches of Bikanervala in India Agra, Ahemdabad, Allahabad,
Angan, Delhi & NCR(Chanakyapuri, Chandni Chowk, Connaught Place,
ITL Pitampura, Jail Road, Karol Bagh, Lajpat Nagar, Greater Kailash 2,
Naraina, Preet Vihar, Rajouri Garden, Punjabi Bagh, Ring Road Mall,
Noida -18 Greater Noida, Sohna Road, Noida 63, Gurgaon Old, Ghaziabad,
Faridabad, Gurgaon), Gajroula, Haridwar, Hyderabad, Jalandhar, Kundli,
Lucknow, Meerut, Sahibabad, Varanasi, Bhiwadi








Bikanervala has 18 outlets around the world which is in Europe , Asia and
American Continent. Bikanervala, an ISO 9002 company, the plant is built
to meet international standards.US (United States ), Canada, UK (United
Kingdom), Germany, Australia, UAE, Kuwait, Singapore, Qatar, Thailand,
Hong Kong, Malaysia

















1.2 Vision & Mission
1.21 Companys Vision
Bikano vision is to promote India and Indian heritage, culture and cuisine
worldwide. They are focusing on customizing Indian food for the Global
Market. Good taste takes time to develop.
Exclusive recipes go through subtle evolution to become timeless classics.
Tradition melds into modernity while still keeping its character intact.
Bikanervala is the true essence of the coming together of a grand heritage
with innovative energy.
It has taken over half a century of focused growth and driven purpose to
transform Bikanervala from a traditional sweets and snacks maker to a
brand universally recognized as a symbol of great quality and exceptional
taste. Packed snacks and food chain .Bikanervala will invest up to Rs 250
crore over three years to open more restaurants and increasing production
capacity. ," Bikanervala Foods Pvt Ltd CEO Suresh Goel told PTI.
"Now they plan to open their restaurants in other parts of the country.
Currently, they are mostly operating in north India. New restaurants will be
mix of company owned and franchised outlets. Every year they will add
10-12 new restaurants."




1.22Companys Mission
The companys mission is to review, recreate and rediscover the trend of
healthy eating and innovate and invent fresh new methods to nourish and
delight everyone they serve. Packed snacks and food chain Bikanervala
will invest up to Rs 250 crore over three years to open more restaurants and
increasing production capacity."They are expanding very fast and they will
invest up to Rs 250 crore by 2015-15 to increase their production capacity
and to open their restaurants," Bikanervala Foods Pvt Ltd CEO Suresh
Goel told PTI. The company will invest up to Rs 150 crore in adding 60
new restaurants spread across the country. It already has 40 restaurants in
India, spread across north India and Ahmedabad and Hyderabad. The rest,
Rs 100 crore, will be utilised in ramping up production capacity at a plant
in Haryana. It will also setup a new plant that is expected to come up in
Greater Noida.
1.23 Companys Motive
The basic motive is to offer best services and quality to satisfy their
customers throughout the globe. Quality is their passion and this spirit has
transformed the traditional Indian sweet-maker into a full-fledged
processing food industry

1.24 Companys Goal
The goal of this company is to provide their customers perfect taste and
quality in best of packaging
1.3 Concept/Brands & Their Product Range
Bikanervala has three brands or concepts of food. They are as following:
1.31Bikanervala
The traditional Indian sweet shop cum restaurant, here the customer can
find the pleasure & warmth of traditional Indian sweets, namkeens, chat &
snacks and 100% pure Vegetarian multi cuisine restaurant which is served
& delivered with passion and celebration.
Bikanervala concept always has been to innovate and yet maintain the
original flavor of traditional Indian food with primary focus on quality,
hygiene and affordability. Customer satisfaction is on top at Bikanervala.
Bikanervala showrooms are located in India, Nepal, and UAE & New
Zealand.
Products list under Bikanerwala :
A. Desserts
Many Indian sweets or mithai, are fried foods made with sugar, milk
or condensed milk. Ingredients vary by region. Some common Indian
sweets and desserts include:
Barfi, Chikki, Gulab jamun, Jalebi, Mysore pak, Kulfi, Kheer, Shrikhand,
Maalpuha, Rasgulla, Sandesh, Kaju Katli, Rabri, Pedha, Kalaakand,
Chenna
B. Beverage
A drink or beverages is a kind of liquid which is specifically prepared for
human consumption.There are many types of beverages offered by
Bikanerwala. The common beverages are: Tea, Lassi, Faluda, Coffee,
Sharbat, Nimbu Pain, Chaas, Flavored milk, Jal Jeera, Soups
C. Snack
A snack is a portion of food often smaller than a regular meal, generally
eaten between meals. Snacks come in a variety of forms including
packaged and processed foods and items made from fresh ingredients. The
common snacks are: Papdi chat, Paneer tikka, Tikki, Aloo chat, Dhokla ,
Samosa, Pakoda, Gol gappa, Dahi Bhalla, Kachori, Soya chap, Fruit chat
D. Main course
A main course is the featured or primary dish in a meal consisting of
several courses. The main dish is usually the heaviest dish on a menu. The
main course dishes are as follow: Dalmakkni, Dosa, Paneer ,Fish Curry,
Rajma, Choley, Kadi, Vada pav, Idli sambhar, Biryani, Dum aloo, Chicken,
Chap, Keema, Puri Sabzim, Aloo Gobi


E. Chinese & Continental
This cuisine category is most preferable by younger generation so
bikanerwala has wide range of these products under this category which are
:Veg. Fried Rice, Veg. Chowmein Veg. Manchurian, Veg.Choupsey,Chilli
Paneer, Chinese Platter, Veg. Burger, Veg. Cheese Burger, Tomato Soup

1.32 Bikano
Bikano is the international brand of packaged sweets, namkeens, papad and
syrups manufactured according to the world standards of hygiene and
quality. Its packaged products have always been big attractions of
customers in both India and abroad. Its food products like namkeens,
cookies and syrups have made it the most preferred in between meal snack
all over the world.
Its concept of constant innovation through the use of modern technology
for packaging retains its original flavor for maximum time period. Its vast
variety of product are available in Bikanervala and Bikano Chat Caf
outlets and also in super markets in India and Aboard.
Products under Bikano are categorized into various segments:Namkeens,
Sweets, Snacks, Syrups
Namkeen : Namkeen is the Hindi word for savory or salty foods. The word
is probably derived from the Hindi word for salt, which is Namak. The
varities which Bikano has are -:Khatta Meetha, Aloo Bhujia, Nimbu
Masala, Kashmiri Mix, Kaju Mixture, Navratan Mixture, Peanuts, Moong
Dal, Channa Masala
Sweets : Sweets are a small shaped piece of confectionery made with
sugar. In India its very frequently consumed by customers. So along with
modernization of food industry sweets are coming into packaged boxes
which can be easily stored by customer and Bikaner has a wide range of
packaged sweets which are :Chikki, Soan Cake, Kaju Barfi, Dry Petha,
Soan Cake, Panjeeri Ladoo, Karachi Halwa, Khoya Barfi.
Snacks : A snack is a portion of food often smaller than a regular meal,
generally eaten between meals. Snacks come in a variety of forms
including packaged and processed foods and items made from fresh
ingredients .Bikano has 3-4 types of packaged snacks which are :- Crunchy
Munchy, Punjabi Punch, Chatax, Wafers

1.33 Bikano Chat Caf
Bikano Chat Caf is a new age concept of Bikanervala aimed at
establishing a strong network in the corporate and the retail segment. It is a
chain fast food restaurants and Tuck Shops serving traditional Indian Chat,
Combo Meals, Burger, Pizza and Snacks in a modern hygienic
environment. Their main focus has been to provide packaged traditional
foods at an affordable price to their customer groups are located in
corporate houses, mall, and exhibition stalls etc. Their innovative menu and
state-of-the-art manufacturing and delivery systems ensures original flavor
from kitchen to customer.

1.34 Angan
Angan a pure vegetarian family restaurant that vegetarian food to the
people who even traveled that provide vegetarian food to the people who
even traveled to India. Angan pure vegetarian restaurants are now available
in Delhi, India & Kathmandu, Nepal.
1.35 Bikanervala Boutique Hotel
Bikanervala has also launched a new hotel in vicinity of Hyderabad at
Banjara hills right above the bikanervala restaurant. Bikanervala group has
followed the concept a boutique hotel to provide hospitality services with
traditional Indian customs.
1.4 Size (In Terms Of Manpower & Turnover) Of Organisation.
The company has manufacturing unit for mass production (in greater noida
and rai(bhawana). It has 1,40,000 retailers , 1,200 distributors.
Bikanetrvala products are Available in 26 countries. It has 90 outlets.of
Bikano chat caf and 55 outlets of Bikanervala ( 4 in dubai, 3 in
newzealand, 1 in Singapore). In FY 2013, the turnover from packed food
was Rs 500 crore, while restaurants contributed Rs 100 crore.

1.5 ORGANISATION STRUCTURE OF THE COMPANY




Figure No.1.1 - Organization Structure Of Bikanervala Pvt. Ltd.


Table No-1.1: Designation



Designation of Manager Name
MD Mr.Shyam Sunder Aggarwal
GM Mr. Kailash kukreti
Chairman Sri Kedar Nath Aggarwal
R&D Ms. Mamta
Quality Ms. Neerja
Sales Mr. Kushal
Design & Development Ms. Shivli
Marketing
Ms. Sangeeta
Customer Care
Ms. Ishu
Costing
Mr. Naveen Gupta
Salary Mr. Pushpinder
Project Mr. Vishal
Recruiter Ms. Swati
Trainer Ms.Veena Kumari

1.7 Market Share Of The Company
The market share of Bikanerwala is 13.75% of indian sales and 7.5% of
export
1.8 Present leadership
Mr.Harikant Vashisth Unit Manager connought place Outlet
Mr. Feroz khan Assistant Manager Trainee
Mr. Naval Kishore Assistant Manager Human Resource
Mr. kamal kishore Marketing & shift manager cp outlet,

They are the employees of the Bikanervala I have interacted with during 6
weeks of Summer Internship. They help me for all learning of Practical
Knowledge in the corporate world.
1.9 Source of Data Collected
In this research the source of data collection is:
Secondary data: It is a kind of data which have already being collected for
purpose other than the problem at hand.
The sources I used for data collection are as follows:
Websites
i. http://www.bikanervala.com/
ii. http://www.bikano.com/
iii. http://www.bikanochatcafe.com/
iv. http://bikanervalahotels.com/
















CHAPTER-2
SWOT ANALYSIS


STRENGTH
i. Good taste
ii. Good variety
iii. The product has good brand
awareness and a high quality
image.
iv. Good and attractive packing
which always attract the
people.

WEAKNESS
i. Less advertisement
ii. Less availability of brand in
many outlets.
iii. Consumer proximity to retail
outlet.
iv. Limited number of system in
the head office.

THREAT
i. Competition from Lehar,
haldiram and crax.
ii. Competition from other local
brands.
iii. Increase in cost of raw
material.
iv. Health consciousness among
people.


OPPORTUNITY
i. Increase its outlets.
ii. Launch product for health
conscious people.
iii. By providing proper schemes
bikano can increase its supply.
iv. By providing more profit
margin bikano can increase its
supply.
2.1 Swot Analysis
2.11 Strength
The company has High brand recall. It has Strong brand name with rich
history of over 60 years. Numerous Bikanervala showrooms serving
multiple cuisines along with traditional sweets and snacks. Number of
products like sweet, bakery products, namkeens, chats and other fast food.
It has a strong brand in Bikano manufacturing world class packaged
namkeens and sweets. Trusted brand for its quality, hygiene and taste.
Strong distribution network making the products available in India and
abroad. Innovation through use of technology in packaging. Bikano chat
cafes present in corporate houses and malls, serving western fast food
along with Indian traditional snacks. The Products available in gift packs
making it an ideal gift

2.12 Weakness
The company has Limited number of stores and mostly concentrated in
North India. It has Strong competition from the unorganized sector also
means limited market share. They head office not have extra system. They
provide less margin to wholesaler & retailer. Marketing of bikano products
are non appropriate to attract customers. Bikano doesnt provide credit
facility to their wholesalers as other brands provide to wholesalers. Less
concentration on customer relationship management



2.13 Opportunities
The company needs to Increase its presence in international markets.
Increase its number of showrooms, Bikano chat cafes and reach out to
customers throughout India. Advertise itself on various platforms. Launch
products for health conscious people like sugar free sweets and snacks with
low trans-fat, etc.

2.14 Threat
The threat to Bikanervala Company is health consciousness amongst
people. Increase in cost of raw materials can cause threat to the company .
Inflation causing people to avoid unnecessary expenditure. Global
economic instability and recession can also cause threat to bikanervala

2.2 The Usp Of Bikanervala Pvt. Ltd.
It is committed to hygiene and standardized quality. It has achieved the
unique distinction of becoming the first Indian company in its category to
have been granted ISO-9001:2008 certificate
2.21 Porters Five Forces Model Of Bikano
i. Threat Of A New Entrants-There is a strong competition from
unorganised section. i.e. .facing competition from local brands like oyes,
fun flips .it also has competition with major brand product like taka tak of
haldiram and tethe medhe of bingo and puff corn of kurkure.
ii. Threat Of A Substitute-The major substitute of bikano is haldiram
.bikano has holding on gift packs but still they have to focus on other
section also.
iii. Industrial Rivalry -In the industrial rivalry, the competitors of the
bikanervala are Haldiram, Lehar, Lays.
iv. Bargaining Power Of Supplier-There is a threat that the raw material cost
which they purchase from the supplier is high, which means that the
bargaining power of supplier is high.
v. Bargaining Power Of Buyer- Due to the less advertisement, the product
of bikano are not much popular. Due to which the bargaining power of
buyer is high and due to which the company is not making

2.22 Enterprise Resource Planning (ERP)
ERP system will enable integration of all business processes of Bikanervala
through a single information system. This will help in inter department
information sharing, communication and provide a real time picture of the
overall performance of the organization. Information provided by ERP
system will enable management in analytic based planning, formulation
and execution of business strategies. Three major areas are identified for
ERP implementation in BIKANERVALA Pvt. Ltd.
A. Project Management
It deals with Project Management. BIKANERVALA Pvt. Ltd. executes
various types of projects through Strategic Business Units (SBU) operating
from corporate office, regional project and inspection office. Activities
carried out by these SBUs can be classified, as those related to Projects and
others such as training, manpower/resource planning, corporate reporting,
MIS etc.

B. Financial Management
It deals with the activities of Finance and Accounts division. In addition to
accounting, areas like vendor management, project accounting, audit trail, regulatory
compliance, treasury management, risk management, planning and
financial reporting etc. are aimed to be achieved with ERP.

C. Human Resource Management
It deals with activities related to Human Resource including corporate
services. Aspects like recruitment, promotions, employee grievances, talent
management, administrative areas and corporate services like legal,
vigilance, Library and company secretarial functions etc. are to be covered
with ERP.


2.3 Variation/Deviation
2.31 Selection Process- There is a variation in the selection process
followed by the company (bikano) and what I had studied in classroom.
Selection process of bikano is different from the actual process. As
selection comes after recruitment.
Selected candidates follow various steps of selection process. In bikano
selection process start with the application receiving of selected candidates
and those selected candidates go for the aptitude test. After clearing the test
the next step is interview with the HR person. If candidate pass the
interview with HR person, he or she may enter in to the next step of
selection process i.e. interview with the HOD and when candidate cleared
the interview, he may introduced to the salary section and finally candidate
is selected.
2.32 Exit Policy-It is company policy to ensure that employee terminations
are handled in a professional manner with minimal disruption to ongoing
work functions. In bikano the exit policy for employees firstly include the
exit interview, which take place between the employee and HR person. The
exit interview provides employees the opportunity to freely express views
about working at a company and will be held in strict confidence. The next
step in exit policy is to take NOC from each department. After this
approval is receive. Employees are expected to provide a minimum of 45
days notice of their intention to separate from the company in order to
allow a reasonable amount of time to transfer ongoing workloads. The
employee gets his experience letter within that 45 days and also clear his
salary issues before leaving the organization.










Chapter-3
Data Collection and Presentation
A. Data collection
Functional Area: Marketing
3.1 Product Planning Process
1.1 Product planning process is the ongoing process of identifying and
articulating market requirements that define a products feature set. Product
planning serves as the basis for decisions about price, distribution and
promotion. Additionally, a small company must have an exit strategy for its
production case the product doesnt sell. Product planning entails managing
the product throughout its life using various marketing strategies, including
product extensions or improvements, increased distribution, price changes
and promotions.
3.11 Product development
Since Bikanervala has a vast variety of products in several categories.
Categories of the products are as follows:




Chats &
snacks
Namkeens

Syrups

Sweets
PRODUCTS OF THE COMPANY
Gift pack
Bakery
Several Marketing, Promotional and Selling activities are being undertaken
by departments for a successful development of products. Bikanervala
works very hard on its product development with all the activities
mentioned below:
Sensory Activities:
Bikanervala conduct sensory activities every month of its products and take
a step ahead for the development of products on the basis of the
performance of the product with the competitors products.
Radio
Bikanervala incurred 7 lakhs on Radio Advertisements and contests run by
RJs and gave gift hampers to all winning customers.
Road shows
By conducting Road shows, samples distribution, discounts, promotional
offers on spot, product development is being done.
Print
Magazines and newspapers Advertisement of own expenses and
collaboration with alliances & companies
Online
Facebook, online website, and other facilities online help in online
marketing of product which helps in product development
3.12 Products lines of the company









3.13 Popular markets where product is sold
North India, Singapore, London, Middle East countries Bikano product is
much demanded and has a big sales records as the company is growing at
200% in past two years.
3.14 Major competitors
The major competitors of Bikanervala Company are as follows:
a) Haldirams
b) Lehar
c) Kurkure
d) Nanaji,
e) Bikaji
Product Line
Bikanervala Bikano Bikano chat
cafe
Angan
Bikanervala
boutique
hotel
3.2 Pricing policies and strategies
There are many ways to present the 'price' for a product or service to the
customer. Some of the well- known methods are described below
a) Target profit: Target profit is based on the previous records of profit and
growth of the company & market.
b) Perceived value: Pricing decisions are being taken on the basis of
Haldirams pricing strategies by regular comparison of MRP of products.
c) Bundled pricing is done that combines multiple products under one price
like Assorted Papad, Gift packs, Dispensers, combos, etc.
d) Psychological pricing is done in various outlets, shopping malls, super
markets like Big bazaar, Reliance fresh, More, Fair price. For e.g., 3
Namkeens or Snacks pack at Rs.49/-

3.3 Promotion
3.31 Components of promotion mix
The various components of promotion mix of bikanervala are Advertising
which includes Advertising media, e.g. TV ads, Radio, print media. Sales
promotion such as discounts, sales etc., Personal selling and Public
relations.
3.32 Budget Allocation for promotional activities
Marketing department is given a fund for its marketing practices every
year. Rs. 98, 00,000 was provided for the year 2014-15. A budget is
prepared by the experts and is allocated on the channels of marketing the
best way for getting the best results. For eg. Bikanervala spent 7 lakhs on
Radio advertising & promotion activities in 2014-15.
3.4 Channel Management
3.41 Distribution system:
Bikanervala has a strong distribution management in India & Abroad. It
deals with 1200 Distributors, 1, 40,000 Retailers; Bikanervala has 55
Bikanervala outlets, Bikano chat caf 90 outlets.

Functional Area: Human resource management
3.1 HR Planning, Recruitment, Selection and Induction
The ongoing process of systematic planning to achieve optimum use of an
organization's most valuable asset - its human resources. The objective of
human resource (HR) planning is to ensure the best fit between employees
and jobs, while avoiding manpower shortages or surpluses. The three key
elements of the HR planning process are forecasting labor demand,
analyzing present labor supply, and balancing projected labor demand and
supply.


3.11 Structure of HR Department


Figure-No.3.3: Structure of HR Department

The structure of hr is starts with EVP under that HR head which is further
divided into two managers under each manager they have team of
executives.
Total number of employee is 2000 out of which 1500 employees are
permanent employees and remaining 600 employees are temporary.


EVP
HR Head
Managers
Team of
Executives
Managers
Team of
Executives
3.12Organization structure and design:


Figure-No.3.4: Organization structure and design:
3.13 Planning Process for HR:
HR Planning processes has been executed once in year before starting of
financial year. It helps to manage time and expenses efficiently in
searching human resource in advance. Employee turnover rate in an year is
8% to 9.5%.

Chairman
Board of
directors
MD
CEO
H.O.D.
Executive
Director
H.O.D.
3.14 Major reasons for attrition or Labour Turnover :
The major reasons for attrition or labour turnover such as Labour gets
Motivated by another company who pay higher grade. Some labours who
are less engaged in work can also become the reason for attrition.
Sometimes labour dont like the Working conditions of the company.
Sometimes labours are not satisfied with the job which is also one of the
reasons for attrition.
3.15 Sources of recruitment:
The company uses mainly two sources of recruitment:
Internal sources of
recruitment
External sources of
recruitment



Transfers
Promotions
Data base
Referral
Internal job




Job portals
Consultants
Campus
Advertisements
Newspapers




Table-No.3.1: Sources of recruitment
a. Internal sources of recruitment
This involves recruiting candidates within an organization to fill the
vacancy. Unlike external sources, companies fill the positions through
references of internal employees or current employees promotions to
higher positions.
b. External sources of recruitment
This involves recruiting a candidate through references, networks, job
portals or they may approach recruitment agencies. In order to compete
with other companies &increase their standard, employers hunt for best
talents working for other top companies.

3.16 Managerial employees selection process
The selection process from executive to manager: In this selection process
the first step is to take an interview by the HR, after this a meeting or an
interview with the head of the department, then meeting between the HR
head and the candidate and the last step is the interview with the director.
The selection process for the designation above to the manager: The first
step in the selection process is interview with the HR and then interview
with (HOD) head of department, after this the meeting with the HR head
and then interview with the director and after passing all the above steps
the last step is to interview with the MD or the CEO. In this company the
induction programme is being held for the duration of one day to seven day
for the new employee.
3.17 Skills required for the managerial employee
Skills required for the managers are depend upon the function-to-function
and level-to-level. Certain number of years of experience may require for
the managers. Some managers need to clear certifications like PMP before
holding the position.
3.18 Probation period
A probationary period varies widely depending on the business, but can last
anywhere from 30 days to several years. If the new employee shows
promise and does well during the probationary time, they are usually
removed from probationary status, and may be given a raise or promotion
as well. But in bikanervala foods private limited the probation period for
various levels of employees is six months.
3.19 Job Description and Job Specifications of managerial employees:
Job description:
The manager is an employee who is responsible to plan, direct and oversee
the operations and fiscal health of a business unit, division, department, or
an operating unit within an organization. The manager is responsible for
overseeing and leading the work of a group of people. The manager is also
responsible for planning and maintaining work systems, procedures, and
policies that enable and encourage the optimum performance of its people
and other resources within a business unit.
3.20 Human resource information system:
The Bikanervala uses the ERP as the human resource information system.
A system which seeks to merge the activities associated with human
resource management (HRM) and information technology (IT) into
one common database through the use of enterprise resource planning
software. The goal of HRIS is to merge the different parts of human
resource including payroll, labor productivity, and benefit management into
a less capital intensive system than the mainframes used to manage
activities in the past. Also called Human Resource Management system
(HRMS)
3.2 Training & Development
A managerial employee is defined as someone who makes, executes, and
exercises independent judgment about management policies. The types of
training followed by bikano for managerial employees are: Time
management, Leadership and Stress management
Non-managerial employees are the Delegates, skilled and unskilled labour.
They are assigned to perform various tasks and duties and are accountable
to their corresponding managers. The types of training followed by bikano
for non-managerial employees are: Team approach, Decision making and
grooming
Duration of training for managerial employees in bikano is 15 hours per
year and for non-managerial employees in bikano is 30 hours per year. One
week time is given for refresher training to the new joiners in bikano. There
are facilities for attending external training programmers in bikano. They
call for the external trainer and they also go for training section. Promotion
policy of the organization is linked with training implementation. The basis
of promotion for managerial and non-managerial employees is based on
performance and not on seniority in bikano. All types of employee
development programme (job enrichment, job enlargement, transfer,
promotion) regarding their career planning is followed in bikano.
Managerial and Non managerial employees give their feedback on training
programmes which they had attended. Number of transfer in a year is 18 in
bikano.
3.3 Performance Appraisal and Recognition System
Performance appraisal is based on PMR (Performance management
review). It is a process where there is a frequent performance review
meeting between the manager and subordinate are held. Initially, monthly
reviews may be used and then extended to quarterly review. Achievement
is considered in annual appraisal process. Frequency of performance
appraisal process in bikano is annual based. The role of supervisor in
performance appraisal system is to give rating to the performance of the
subordinate. Role of self (employee himself) in performance appraisal
system is to achieve the target or goals of the organization.

3.4 Career Development
Career development opportunity for managerial employees is done through
cross jobs and in house & off campus and for non- managerial employee is
done through in house & off campus training and buddy training i.e.
external training. Facility for self-development is done through the
provision of attending seminars/conferences. Job rotation, job enrichment
or job enlargement opportunity is done on the basis of qualification, skills,
experience of the employees.
3.5 Reward or Compensation Management
Components of wages and salary are a) gross salary b) variable salary c)
incentives d) Ctc. Percentage of DA (dearness allowance) for employees
are 13%. Ex gratia benefits for managerial and non-managerial employees
is given through gratuity. Mode of payment of wage/salary is done through
bank transfer. Deduction from wage/salary is done through ESIC +
PF&TDS (as applicable). Bonus provision is done as per payment of bonus
act. There is no profit sharing plans. There are many benefits which bikano
provide. Medical benefits like group medical insurance policy applicable to
employee not covered in ESIC. Paid leave given by the company is 15 per
year and insurance benefit as per ESIC act.


3.6 Welfare
3.61 Working Environment of Bikanervala
Bikanervala provides its employees a healthy working environment. A
healthy work environment means a place where employees have a safe and
clean work environment, where they have strong and supportive working
relationships that give them a sense of control and influence over what
happens to them, and where they are encouraged to look after their own
health both at work and at home.
3.7 Grievance Handling
Major reasons of grievances that employees of bikanervala commonly face
are related to their pays and promotions, demand for safety appliances.
Bikanervala follows various in house activities, seminars, inter and intra
department meetings for settling employee grievances.
3.8 Safety Policies & Practices
In bikanervala accidents occur frequently and the main cause of these
accidents are due to slippery floors, heavy loading and unloading of
material and products, by use of sharp kitchen utensils. Workers in the
factory are provided with proper uniform and proper cleaning and checking
of the factory is done in order to prevent accidents from occurring.
The role of safety officer is to ensure that proper safety measures are taken
in the factory, all the safety equipments like fire extinguisher are there in
the organization and in working condition.
Various safety policies adopted by the organization are regular refillment
of extinguisher; regular factory cleaning schedule is followed.
Functional Area: IT Enabled Services (ITs)
3.1 Technology quotient in managing company
B. E- Commerce linkages with B2B, B2C and B2G. E-commerce
(electronic commerce or EC) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic network,
primarily the Internet. These business transactions occur either business-to-
business, business-to-consumer, consumer-to-consumer or consumer-to-
business. E-commerce is conducted using a variety of applications, such as
email, fax, online catalogs and shopping carts, Electronic Data
Interchange (EDI), File Transfer Protocol, and Web services.
Business-to-business (B2B): Describes commerce transactions between
businesses, such as between a manufacturer and a wholesaler, or between a
wholesaler and a retailer.
Business to- consumer (B2C): A transaction that occurs between a
company and a consumer is called as called B2C. The term may also
describe a company that provides goods or services for consumers.
Business-to-government (B2G) is a derivative of B2B marketing and often
referred to as a market definition of "public sector marketing" which
encompasses marketing products and services to various government levels
- including federal, state and local - through integrated marketing
communications techniques such as strategic public relations, branding,
advertising, and web-based communications
Bikanervala Online Head Office
Warehouse


Transit Delivery
Packaging


Customer


Figure-No.3.5: Online Order Mechanism in Bikanervala
In the above figure Customer will make order online on bikanervala website then
Order will flow in HO and same will be sent to ITL after payment received in
Customer will make
order online on
bikanervala website
Order will flow in HO
and same will be sent to
ITL after payment
received in account
Order will be processed at
ITL under customer
account TBD
Product release and
packaging for dispatch at
ITL
Appointed logistics
vendor will deliver order
from ITL to customer
Delivery will be
made within 3-5
days depending
upon location
Order delivered to
customer
Customer will get
notification of order status
Payment will be transferred
to ITL on fortnightly basis
against bill raised.
account after that Order will be processed at ITL under customer account TBD.
The Product is release and send to ITL outlet packaging and dispatching. Then
appointed logistics vendor will deliver order from ITL to customer. The delivery
will be made within 3-5 days depending upon location. Customer will get
notification of order status and Payment will be transferred to ITL on fortnightly
basis against bill raised.

Functional Area: Finance
3.1 Profits
3.11 Methods for distributing its profits
The company does not pay dividend to its equity shareholders but instead
invest the profit in further long term expansion of business. Like recently
the company started a new production unit in Rai, Sonipat, Haryana.
3.12 Capital Structure
Contribution of debt, equity, retained earnings etc. in the company's capital
structure
The company does not issue debentures but take term loans from the banks
(HSBC, HDFC, STANDARD CHARTERED). The company right now
have equity of Rs. 0.85 crores, Long Term Loans - Rs. 43.30 crores,
retained earnings - Rs. 94.84 crores. The does not pay dividends to their
shareholders, Hence all the profits adds up to retained earnings. Currently
the status of retained earnings for the year of 2013-14 is Rs. 94.84 crores.
3.13 Changes in capital structure in last one year
The company saw a change in capital structure in last one year. The
shareholders fund has increased from Rs.70.55 crores in the year 2012-13
to Rs.95.69 crores in the year 2013-14 due to increased in retained earnings
and the company's long term borrowings too has increased from Rs.22.14
crores in the year 2012-13 to Rs.43.30 crores in the year 2013-14 mainly
because of the new production unit started in Rai, Sonipat, Haryana.
3.2 Financing
3.21 Internal and External sources of financing deployed by the
company
Company's sources of financing includes Long Term loan from its banks
(HSBC, HDFC, STANDARD CHARTERED) and other source is Working
Capital.
3.22 Factors that this company bears in mind while deciding source of
financing.
The factors which influence the source of financing of the company
include:
1) Interest Cost
2) Value added services
3) Maximum funding
3.23 Role of cost of capital for financing
a) It is used to measure the investment proposal to choose a project which
satisfies return on investment.
b) It is used to design the market fluctuations and try to achieve the
economical capital structure for firm
3.3 Working Capital
3.31 Requirement of working capital now and year back.
A year back, company had two production units at Greater Noida, N.C.R.
and Lawrence Road, New Delhi, but with a new factory at Rai, Haryana,
the Requirement of working capital has increased.
3.32 Components of working capital.
The Main components of working capital of Bikanervala Pvt. Ltd. are
debtors and creditors.
3.33 Factors influencing the company's working capital requirement.
The companys working capital requirements are influence by the factors
such as nature of the business, the production policies which are made by
the company, the terms of purchase and sale of the company and the
market condition.
3.34 Operating Cycle
Presently the company's operating cycle period is of maximum 10 days at
an average.
3.35 Ways in which the company is trying to reduce its operating cycle
The company always tries to its operating cycle to maintain the cost of
product and to retain the trust of its creditors, they follows various ways
such as by using advanced technology in the production , by lowering the
credit period , by increasing the quality of the inventory and last by
lowering the cost which are held by the company
3.4 Cash and Receivables
3.41 List of their debtors and their types.
The company has many types of debtors some of them are: Exportors,
Distributors, Franchise's Outlets, Government Institutions (Railways,
Canteen store department), Other Institutions (Future Group, Aditya Birla
Group, Reliance Group)

3.42 Discount offered to the distributers and retailors
SCHEMES CHART OF BIKANO IN VARIOUS STATES
S.No. Description Applicable States Varient Primary
Schemes
(in %)
Secondar
y
Schemes
(in %)
1 Namkeen Rs. 5 Delhi,Haryana,Uttar
Pradesh,Punjab,Chandigarh
All

6.25 1.44

2 Namkeen Rs. 5 Rajasthan All

10.29 4

3 Namkeen Rs. 5 Maharashtra,Madhya
Pradesh,Himachal Pradesh,Jammu
&
Kashmir,Utrakhand,Bihar,Jharkand
,Miscelaneous
All

6.25 0
4 Namkeen Rs. 10 Uttar
Pradesh,Chandigarh,Rajasthan
All

6.25 1.44

5 Namkeen Rs. 10 Punjab,Haryana,Himachal
Pradesh,Jammu &
Kashmir,Madhya
All

1.96 0.74

Pradesh,Utrakhand,Maharashtra
6 Namkeen Rs. 10 Delhi,Bihar,Jharkand,Miscelaneous
States
All

1.96 2.04

7 Namkeen Rs. 20 All India All

0 2.96

8 Namkeen 200
gms.
All India except Rajasthan All

0 3
9 Namkeen 200
gms.
Rajasthan All

10.87 5
10 Namkeen 400
gms.
All India except Rajasthan All

0 3
11 Namkeen 400
gms.
Rajasthan All

11.04 5
12 Namkeen 1 kg. All India except Rajasthan All

0 3
13 Namkeen 1 kg. Rajasthan All

16 3
14 Namkeen 2 kg. Rajasthan All

6.25 0
15 Snacks Rs. 5 All India except Rajasthan All 5 2
Table-No.3.2: Discount offered to the distributer s and retailors



3.43 Company's policy for mitigating risk from default of debtors.
To decrease the mitigating risk from default of debtors, the company rely
on receiving timely payment as per the following credit period: Exporters:
40 days, Distributors : 0 days, Franchise's Outlets : 5-10 days, Government
Institutions : 30 days, Other Institutions : 15-20 days. There is no bad debts
3.5 Inventory
3.51 Components of inventory
There are two main components of inventory one is Raw Materials which
includes, Oil, Sugar, Besan, Pulses and other is Packing Material.
3.52 Method of inventory management followed by the company.
Since the inventory items are perishable therefore material cannot be stored
for a long period, Hence inventory are stored for a short period of 5-10
days, failing which there can be problems in production capacity.
3.53 Method of inventory valuation followed by the company.
The company uses FIFO (first in first out) method for inventory valuation.
3.54 Problem of shortage of inventory/ surplus inventory
With effective monthly stock taking, there is no shortage or surplus of
inventory in warehouses.
3.6 Sources of Finance
3.61 Long term and Short term sources of finance of the company.
Long term sources of finance of the company includes retained earnings
and long term borrowings from banks and short term sources includes
working capital

3.62 Cost associated with raising of the funds.
There is no cost on retained earnings but the long term loans are affected
by interest rate and that is called interest cost.
3.63 Change in the sources of funds raised in last one year and reasons
for the same.
The company saw a change in capital structure in last one year. The
shareholders fund has increased from Rs.70.55 crores in the year 2012-13
to Rs.95.69 crores in the year 2013-14 due to increase in retained earnings
and the company's long term borrowings too has increased from Rs.22.14
crores in the year 2012-13 to Rs.43.30 crores in the year 2013-14 mainly
because of the new production unit started in Rai, Sonipat, Haryana.
3.64 Obstacles faced by the company for raising funds.
Usually the company does not face any such problem while raising funds
but in case if debt equity structure raise, then it is difficult to convince
banks to avail loans.
3.7 Credit Policy
3.71 List of creditors and their types.
We have majorly 3 types of creditors, namely,
i. Raw Material
ii. Packing Material
iii. Expenses and Maintenance
3.72 Relationship of creditors with the company
The company shares very good relationship with old as well as new creditors
lasting for long periods. With timely payments and retaining their trust, the
relationship is strong and effective, and of mutual benefit to both.
3.73 Company's current and previous credit policies and terms of
payment.
Usually, we make payments to raw material creditors within 10 days on an
average while within 1 month average to packing material creditors. If in
special cases, creditors are in urgent need, we make the payment within 2-3
days with a benefit of some discount.
3.74 Changes in credit policies and the reasons for the same.
Usually the changes in credit policies are based on the importance and are
as per the agreement between the two parties, like the company make
100% advance payment to foreign parties or importers.
3.8 Investment
3.81 Investment of surplus funds
The entire 100% of surplus fund is invested in capital expansion.
3.82 Criteria for making an investment by the company.
Any investment is made in the company only after checking the feasibility
on the basis of:
i. Technology
ii. Operation
iii. Financial status
3.83 Method of capital budgeting used by the company
Capital budgeting is done on the basis of Pay Back period.


3.3 Functional Area: Production & Operation Management
3.31 System of Resource Management Deployed by the Company
For management of manpower requirement & provisioning there are consultancies and
HR fulfill. For manpower there is solution provider and for maintenance there is a third
party. For management of materials requirement and provisioning different department
are responsible for fulfilling their needs. For inventory management bikano have the
following options
1. Keeping touch with the vendors.
2. Production houses are the major source for resources.
3. Working on ERP System.
4. Regenerated few other systems also.

3.32 Supply Chain Management by the Company
Supply chain entities and management of their interrelationship

Interpretation of Marketing
Expectation Expectation

Product/service design operation customer
(Product /Service (Product/Service)
Specification)
Figure no-3.5: supply chain management


Inbound logistic outbound logistic
Call-off to supplier warehousing
Material handling order processing
Warehousing picking
Inventory control delivery
Organization of supply chain function in the company is done through distribution,
logistics, purchase, warehousing, production.

3.33 Quality Management System in Company
System deployed by the company for quality assurance and quality control is based on
software guidelines
Work flow of quality process
1. For Raw and Packing Material












Figure no-3.6: Work flow of raw material and packaging
Information received from store
Receiving of sample from vehicle
Analyses of sample as per defined
standard
Sample meets the standard Sample did not meet the standard
Material allowed to unload
Material transfer to store
Reject and sent back

2. For in process material and shop floor


















Figure no-3.7: process material and shop floor





Hygiene condition and preoperational checkups
Verification of process and process parameters
ok Not ok
Correct and rectify or reject Continue production
Online sampling of
product
Sent for quality checking
ok
Continue production
Final packaging
3. Testing of finished goods















Figure no-3.8: Testing of work flow
There is an implementation of standard methods such as statistical quality control (SQC),
TQM, ISO Certification, SQF 2000, ED7 Certificate, HALAL Certificate, FSSAI
Registered, 10PEPC, EIA Certificate






Sample withdrawn from dispatch or shop floor
Details enter in logbooks
Packaging and manufacturing details are checked
ok
Not ok
Informed to concern for
rectification
Continue for organoleptic,
chemical and micro test
Ok
Not ok
3.6 Functional Area: International Business
3.61 System & Process for International business
National and International requirements for compliance of trade and commerce. For
National requirement for compliance of trade and commerce include supplier, IEC
license, DGFT registration, product labeling as per country requirement. For international
requirement for compliance of trade and commerce include buyer, import license,
warehousing, and distribution channel. Role of E- Commerce in compliance include
online banking. Management of international supply chain is based on planning,
coordination, organizing, staffing, directing, and timely delivery. Raw material access
Procedure includes standardization, quality control, and vendor scrutinizing. Procedures
of Payments are done through advance, through telegraphic transfer, and through letter of
credit. Credit terms includes advance, TDP (document against payment), TDA (document
against actualization). Price fixation depends on demand and supply, geographical
distance, targeted market. Measurement of quality is done as per importing country
quality standardization authority. Distribution network at buyer and supplier level is done
in two ways. 1. Primary distribution by road, and train. 2. Secondary Distribution by sea
and by air. International restriction as per importing country regulation.
3.62 Issues & Challenges Related with Operation.
Foreign exchange management is done by fulfilling the FEMA and RBI guidelines.
Foreign exchange volatility depends upon foreign fluctuation plus currency. Government
through different government promotion supporting authority like APEDA, FIEO,
DGFT. Duty drawback when government refund to exporters. Importing tariff barriers
and exporting tariff barriers like quota and non-quota. The mode which bikano follow
while entering into international markets is exporting. There are various risks like
monetary receipts, natural disasters, legal and political which took place during
international trade.





















Chapter-4

Functional Analysis of the Company
In all the areas I have analyzed that:

4.1 Marketing

Bikanervala has now become a good brand name and people are now aware of it.
As from its inception Bikanervala focuses more on its product development. Several
Marketing, promotional and selling activities are being undertaken for successful
product development. Bikanervala works very hard on its product development with
all of these activities:
Sensory testing
In these our own product is been compared with the rivals product and necessary
steps are taken for its development. This is the one of major source of product
development.
For other promotional activities it uses TV ads, radio, print media and sales
promotion which includes providing discounts, sales etc., personal selling and public
relation are also conducted. It has a separate budget for its marketing activities for
each year which is been set by the experts.
For its Pricing strategy it uses MRP of other rivalry products to compare with.
It has a good distribution network of its product in India and abroad also.

4.2 Human resource management
In this department, they follow a proper structure and proper HR planning is made in
advance. Both internal and external sources are followed for recruitment and
promotion purpose. Various heads of the department do the interview and selection
process. Proper training & development programmes are been conducted as per the
need of the current employees, but for shorter period of time only. Employees are
been promoted and appraised through proper performance management review
system, employees are also been provide with career development opportunities.
Various rewards and compensations are also provided to the employees. Bikanervala
uses the ERP (enterprise resource planning) system as the human resource
information system, which is been very useful to them. Healthy working environment
with proper working conditions are provided to the employees, and all the safety
related policies and practices are been followed in bikanervala for the employees.
Grievance handling is also done at the head office of the bikanervala.
The labour turnover is 8% to 9.5% in bikanervala.


4.3 IT Enables Services (ITES)
Bikanervala follows a proper mechanism for online ordering and delivering of the
products, which has been showed in the above chapter properly. The delivery is made
within 3-5 days depending upon the locations.



4.4 Finance
Profit distribution
The company doesnt pay dividend to its equity shareholders, but instead invest the
profit for further long term expansion of the business. Profit is been added to the
retained earnings.
Capital structure
Bikanervala doesnt issue debentures but take loans from the banks. There is a change
in companys capital structure in last one year. The shareholders fund has been
increased from Rs. 70.55 crores in 2012-2013 to Rs. 95.69 crores in 2013-2014 due to
increased in retained earnings and also the long term borrowings are also increased to
100% due to new production unit started in different places.
There is also an increase in the working capital in last years due to opening of new
production units in Rai and Haryana. The company does provide various discount
schemes to various distributors and retailers all over the India. The company also
follows the FIFO (First in First out) method of managing the inventory or for the
inventory valuation. Company is known for timely payments to its suppliers, but the
company provides 100% advance payment to its foreign parties or importers.
Investment of 100% is done in capital expansion. Method of capital budgeting is
followed is PAY BACK PERIOD.





4.5 Production & Operation Management.
# System of Resource Management Deployed by the Company

For management of materials requirement and provisioning different department are
responsible for fulfilling the needs. For manpower there is solution provider and for
maintenance there is a third party. For inventory management bikano is following and
considering some points which have been described in the previous chapter properly.
They follow a proper system for quality assurance and quality control in the company
as also for:
For Raw and Packing Material
For in process material and shop floor
For testing of finished goods

There is an implementation of standard methods such as statistical quality control
(SQC), TQM, ISO Certification, SQF 2000, ED7 Certificate, HALAL Certificate,
FSSAI Registered, 10PEPC, EIA Certificate.



4.6 International Business
Compliance is been required to conduct business in national and international market. For
National requirement for compliance of trade and commerce include supplier, IEC
license, DGFT registration, product labeling as per country requirement. For international
requirement for compliance of trade and commerce include buyer, import license,
warehousing, and distribution channel. Role of e- commerce is also to be included.
Payment procedures are done through telegraphic transfer and also through letter of
credit. Foreign exchange management is done by fulfilling the FEMA and RBI
guidelines. The mode which bikano follow while entering into international markets is
exporting. There are various risks like monetary receipts, natural disasters, and legal and
political which took place during international trade.