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REPORT OF INDUSTRIAL VISITS AT BALAJI WAFERS PVT. LTD.

Topic :-

Forecasting and Demand Management

Prepared by Hiren Patel (70) Hiren Patel (71) Karan Sapra (90) Bharat Vagh (118) Druvang Thekadi (113) Ketan Thakkar (109)

Submitted to-Mr. Tejas Shah

INDEX

1.

Company profile History Company Strategy Future Plan Research & Development

2. 3. 4. 5.

Products of Company Supply Chain Management system Plant and Process of Manufacturing Forecasting and Management

History
virani family started to sell potato wafers in year 1974. At that time, the people believe that packing food is not fresh. So they did not spend money for packaging product. Virani family sold it without package. But virani family wants to do something new in market. They decide to launch the product in package. Now the original journey of company was started from year 1976. They stated to supply wafers and nankeens as local brands to the patrons of Astron Cinema, Rajkot. Due to shore supply of them products in market they have started to sell this product as their special brands in year 1982. they still did all process by manual hand held process. Means do all activities by human efforts. After one decade, in year 1992, Virani family has purchase and establishes new plant for the production. That was first plant with semi automatic system. But due to some reason, Plant did not work properly and it was fail in working automatically. Due to that, they decided to establish other plant doing research about it. They installed the other plant in year 1999. That new plant was fully automatic. Its capacity was also 25 times more than first plant. That used the 5000kg potatoes per hour. After establishing two automatic and semi automatic plant, balaji has boosted the quality, taste and sales in market. The fame of the taste reached to the whole Gujarat. After that, they wanted to takeover the whole Gujarat with balaji, they put the biggest automatic plant into the picture in year 2003. it was designed with the double capacity from the last plant. Now they have launched various types of products with various tastes in the markets.

Now company are enjoying after gaining 70 per cent market share in Gujarat. It has also gained 10 per cent market share in Rajasthan, 15 per cent market share in Maharastra and 5 per cent market share in Madhya Pradesh.

Company Strategy
The rocking mantra of Balaji is to win the heart by providing good quality and great taste and distributing sufficient dealer margin. This rocking mantra became the winning strategy of Balaji Group. Its 'Value for money' strategy enables even a kid to buy fresh & healthy food in small prices. Indeed in a neck to neck competition ear one must implement new ideas and Balaji group has developed that. They also remains continuously in way of updating strategy in the right direction. Means Think win-win and stay ahead with us.

Future Plans
Balaji Group perceive in growth rather say development to touch the sky. The company will enhance its product range by adding some futuristic and Indian traditional taste company will plan to some extruded snacks and western products to their Global market. Recently company has acquired more space where its entire nankeens unit will be shifed. The future will see more of Bhikubhai Virani as a Chairman, Mr. Chandubhai as a Managing Director, Mr. Kanubhai Virani as a Technical Director & Mr. Keyur Virani as a R&D Director. At Balaji progress is a life line. Company are going to decide Rs. 50 Crore to expand capacity. Company aim to introduced new food packets in line with changing life style. Company is going to launch corn chips. We would invest Rs. 5 Crore to launch the product.

Quenching the demand of Gujarat, Maharashtra and Rajasthan region Balaji Group is now looking forward to march over India. Balaji plant to reach at the level where not only partial parts of peoples love remains with company, but the all peoples love cover.

Accolade
People's love is the most memorable achievement. Truly, that helped Balaji Group them to reach its fame across the globe. Apart from this, Economic Time recognized Balaji Group as 'Sultan of Wafers' and international magazine i.e. Asia Pacific food online published a special article with 'Chip Off the Old Block' tag. Balaji Group is also a member of Snacks Food Association. Balaji Group believes in sheer performances which win a accolades of people and media at the same time

Research and Development


Company provide special attention at R & D department and consider as key to excel. They do research by many ways and implement it in the market they check it demands and if positive they go forward. By synergizing human mind, their likes and sometimes their beliefs helops a lot. Under the strict laboratory tests each & every batch of raw material passes and then goes for further processing. As goers of Multiplexes, Clubs demands some zing flavors it is always in considerations and planning of new flavors to rock them with their taste. Recently company launched two new products & got high sales volume. So stay tune in with the zing taste and pure quality

Products Potato wafers


As per the public demand & company assumption, company decided to make this product with different types of taste like spice wafer, salt wafer, simple wafer, and tomato flavor wafer. Company has decided to provide this product in different sizes like 40 gm packages, 80 gm packages and 200 gm packages.

Banana wafers
As per the research analysis company wanted to some extra variety likes with pepper & condiment. Company decided to provide this product in different size likes 40gm package, 90gm package.

Sing Bhujia Company decided to provide this product in different size likes 100gm package, 200gm package.

Mung Dal Company decided to provide this product in different size likes 100gm package, 200gm package and 1kg package.

Farali chevdo Company decided to provide this product in different size likes 40gm package, 90gm package, 1kg package and 2.5kg package. Ratalami sev Company decided to provide this product in different size likes 100gm package, 200gm package and 1kg package. Chana dal Company decided to provide this product in different size likes 100gm package, 200gm package. Vatana Company decided to provide this product in different size likes 100gm package, 200gm package and 1kg package. Tikha mitha mix Company decided to provide this product in different size likes 40gm package, 90gm package, 1kg package and 2.5kg package.

Supply Chain Management


Balaji group has one of the very effective Supply Chain System.

Supplier Manufacture

Distribution

Wholesaler

Retailer

Consumers

>>Balajis main supplier are villagers who produces huge quantity of the potatoes to who deal with them. Balaji has good colobration with its suppliers. Balaji group also gives suggestion of all the basic level to the ending process like give them information about which quality seeds farmer should uses, which techniques they should applied. They continuously remains in contact of their supplier. company should have good relation with their supplier and vice versa. Due to this long lasting relation with them, mostly supplier have gained good living standard like they are able to use HONDA CITY. Balaji used other raw material from different business company like Oil refined Company, masala manufacturing company, package pouch printing company. They are in good touch with them and supplier provide instance response for any demand from balaji. >>Balaji group has three different manufacturing plant which situated rajkot & valsad. Manufacture has no other partner. They have all the plants owned by themselves. They have different plant to produce different product. Virani family are managing them and concentrating them focus on plant. >>Distri b ution channel have manage by kataria enterprise group. They joint with the activities like marketing, product promotion and supply chain managemet system. They supply product all the wholesaler in the all cities. All balaji sales force also working parallel to this line. They give better information of the market like which city has more demand, in how much time period it should be fulfilled. >>Wholesaler of this balaji products are spread all over the Gujarat like different cities wise, districts wise and big area wise. Retailers are every small stores which are attached with FMCG product selling. Means Balaji products are available at any big hotel, shop to small tea stall. Distance between two retailers are not more than 100 meters and may be 0 meter.

>>Consumer is the king of the market. So, company gives better quality as well as quantity of the reasonable rate as compared to the competitors.

The plant and Process of manufacturing


Plant The existing plant is the largest in capacity and with the sate of the are facility. In year 2003 Balaji group took pride to introduce this biggest fully automated potato processing machinery plant in India which can process 4500 kg. potato and make 1200kg. of chips per hour. The namekeen and other product line has separate departments and it is been produced in a same quality conscious processing system. Chips and namkeens made in bacteria free and stringent hygienic standard environment. That is the big advantage of this big Balaji plant. Balaji group has introduced other two plants in history. Those are still working. Balaji groups plants are placed at different area. They are using another back system related to plant. Like they use water treatement system and purify its waste water. They use the biogas plant and use it in frying system. Using this they also gain benefit in production cost and also gain benefits from governments taxes.

Process During the industrial visit we have became familier with potato wafer manufacturing process. Its process is as follows. In the starting potatoes are put in bucket manually from where they are elevated and sent to grader system. At grader drum, small size potatoes are removed during drum rotating period. Also some other dust or particals are thrown away from potatoes. At piller area, potatos skins are automatically remove & differnciate from potatoes with a washing.

BUCKET AND ELEVATOR

GRADERS

PILLAR AND INSPECION

SLICER AND WASHER

BLANCHING

FRIER

INSPECTION

MASALA SALT MIXER

BAD CHIPS BYPASS SYSTEM

PACKING

BIG BOX PACKING SYSTEM

READY TO USE

At inspection area worker check the large potato & bad potato. They divide large potato in to two pieces. They remove bad potatoes. Next step is slicer & washer system. In this potatoes are sliced in a particular size define by company and wash also.

Now, potatoes slice pass through Blanching system. Here, potatoes slice blanch by steam. Blanching slice pass through frying system slice are fried for define time. They also take care about that slice does not become black or very dark. After fry, slices are again inspected and remove they become a dark. Also during this inspection area very small parts are thrown away. Now slice pass through masala mixer drum. Here, company use masala as per define batch. Now slice are ready for packing. Slices are elevated and reach the packaging department. In packaging department, product packed in different size like 40gm, 80gm, 200gm etc. they uses nitrogen gas for the packaging product because qualities of the product do not change for sometimes. After completed small packaging of the product. They packed in the large box. And send it to inventory department.

Forecasting & demand management


Forecasting is an importance aspect of all the business without forecasting company can not achieve its objectives .so, all the company doing forecasting .balaji group also doing forecasting & customers demand management for future demand. Forecasting is the process of making statements about events whose actual outcomes (typically) have not yet been observed. it is generally considered good practice to indicate the degree of uncertainty attaching to forecasts. Forecasting is used in the practice of Customer Demand Planning in every day business forecasting for manufacturing companies. The discipline of demand planning, also sometimes referred to as supply chain forecasting, embraces both statistical forecasting and a consensus process. An important, albeit often ignored aspect of forecasting, is the relationship it holds with planning. Balaji group has given information particularly about forecasting & demand management systems for our questionnaire what we have asked during the industrial visit. So, as this information we make some questions are as following: 1) which aspect company consider for demand forecasting? Mostly company can consider history data, expert opinion sales force, customer survey, dealer etc. for demand forecasting. Balaji group consider history data as well as wholesaler & distributor survey data for forecasting. As a History data company use sales order data. 2) In which time range company use forecasting process? There are different company uses different time range for the forecasting process like long range (yearly), medium range(monthly), Short range(weekly). Balaji wafers uses medium range(monthly) as well as long range(yearly) data for the forecasting process. they take last month total sales data & calculate average sales order per day. On the base of this calculated data ,they define how much production do for

day of this . They also check last years same month data. They check how much variance comes from its last month forecasting. On the base of this also take decision for inventory. Last month total sales order Production per day = -----------------------------------------------30 days 3) How companies consider their competitors in forecasting analysis? Generally, balaji Competitors are samarat, lays, bingo, real, hariom, etc. Balaji uses different forecasting for their competitors .they believe in better quality and hire quantity at reasonable price and compete any ultimate Competitors in any market condition strong or week demand condition. 4) Are company using any computer technology for forecasting like a forecast pro, auto box, and smart forecast? No company, dont use any computer technologies. 5) Have company face any time a higher demand then their production capacities? How companies tackle their position? Yes, company faces many times a higher demand then their production capacities. This conditions they expands their production shift as required. They uses second shift. When demands go very much higher they used third shift and work for 24 hours continuously. 6) Which action you take if your forecasting demand target does not achieve? Company does not allow finished good inventory more than seven days. if the order demand will go dawn then the company use discounting system to meet the target. They provide discount and achieve the target and send the product out the stock before seven days. 7) Which action you take for forecasting about demand of new product and also about new taste of exiting product? Company consider the indian people taste choice and design the new flavout on the base of that.

They also take suggestion from experts as well as company managing department opinion about launch. they combine all opinion and if it is suited then company make product with new flaour. They forecast the demand of new product by survey of distributors and wholesalers and retailers. On the base of that, company define that company should produce new product or not. Company also find good time and condition for new product which they want to launch as per them expert decision. 8) which action company are taking to increase the demand and also satisfy the all members of there chain system? Company already give good discount on selling product at every level. And due to that, company has reached at this level. Company also believe that more you sell more you earn. They also give more discount