AVIE BRAR VARINDER SINGH

Company
CREMICA is one of the largest food processing

companies of India with an annual growth rate of 50% in the last 4 years. It was established in 1978 by Mrs. Bectors. Turning her passion for ice cream- making (also her hobby) into a small backyard enterprise. She established the CREMICA Group today a widely diversified food products and services company with an annual sales in figure of INR 1 billion.

Cremica products
CREMICAs presence in the market is visible on

account of its vast range of products, which includes: Biscuits, Confectionaries, Sauces, Jams and Ketchups Indian Snacks, Ready to Eat Food, Condiments Frozen Products, Bakery Products. In this assignment the supply chain of biscuits (glucose) was studied.

Production
The production capacity of the plant is 1.5 lakh

cartons/ month. 1 carton = 142 packs.

Product
Biscuits : the unit produces following types of

biscuits. Salties, Cream, Cookies, Glucose. Glucose : This range of Glucose Biscuits, enriched with glucose, milk and the right amount of extra vitamins, include the Premium and the Milkies variety.

Coverage Area
The production unit of Ludhiana at Laddowal mainly

caters whole Punjab, Delhi, Haryana, and HimanchalPradesh. It offers its product in bulk to Indian Army, Indian Airlines, Barista Coffee Shops , Caf Coffee Day, Reliance Retail Stores, Jet Airways, Indian Railways and prestigious institutions.

Exports
The premium quality biscuits are exported to Africa,

Australia, Caribbean, Canada, USA and UK.

Competitors
The two main competitors of the company are :
Britannia and Parle. It too faces a small amount of competition from

unorganized food processing units.

Competitive advantage
Creamica is having the first movers advantage in case

of manufacturing Twin cream biscuits. High quality assurance, even incase of a single breakage of biscuit in pack is liable to buyback by the company incase of wholesaler and 50% incase of retailer.

Distribution Channel
The product is distributed through the company

owned vehicles i.e. trucks to different destinations. The company follows two types of channels which are as following. Type one and type two Type one includes wholesaler in the distribution channel while the other method provides goods to retailer directly.

Distribution System
company

dealer

wholesaler

retailer

customer

Margin
Company provides 7% commission +1% cash discount

on each unit against Rs. 3.72 (incase of 5 Rs. Biscuits) Dealer gives 3% or 4% from his own commission(7%) to wholesaler accordingly. Retailer enjoys the M.R.P. of the product.

Order Processing
Orders are brought by the salesman, which are shown

to the finance Dep't. For further process of the order. Most of the orders are based on the advance payments.

Cost Reduction Strategies

Reducing the actual weight of the biscuits

considerably. One of the main competitor Parle sells at Rs. 5 for 94 gms. packing while Cremica reduced to 72 gms.

Procurement
A good quality wheat is bought from near by a Local

Mandi in bulk purchase. The cleanliness is done in the Phillaur unit and which is then transported to Laddowal plant. Last year an export purchase of Sugar was made from Brazil which incurred huge losses to the company due to low prices of the Sugar in the local market.

Measuring Demand and Supply

The measuring and matching the demand and supply

is taken care of by ASM ( Area Sales Manager ). ASM is assisted by 1 to 2 sales executives and controls 15- 20 sales man. First of every month meeting of all the ASMS, sales executives and salesman is done. Old targets are discussed and new are fixed. For predicting demand for a particular month in the current year the sales of last year are seen in same month.