CERTIFICATE

This is to certify that MAHERA MEHMOOD

assigned the Research project on

FINANCIAL PERFORMANCE OF PARLE-G. He has submitted this project

report in accordance with the guide lines. To the best of my knowledge this is his
original work and not submitted elsewhere for reward of any other degree or any
diploma.

MR PRATEEK GABA
(PROJECT HEAD)

ACKNOWLEDGEMENT
An individual cannot do project of this scale. I take this opportunity to express my
acknowledgement and deep sense of gratitude to the individuals for rendering
valuable assistance and gratitude to me. Firstly, I would like to express my gratitude
to our guide for providing me such an interesting topic for my school project and
their by supporting co-operating with me during my project. Their inputs have played
a vital role in success of this project. Then I express my sincere thanks to my teacher.
I take this opportunity to thank all dealers, customers who spared their precious time
to provide me with valuable inputs for project without which it would have not been
possible. I firmly believe that there is always a scope of improvement. I welcome any
suggestions for further enriching the quality of this project.

MAHERA MEHMOOD
MBA IIIRD SEM

MAHIPAL
BBA IV SEM

PREFACE
In order to get the practical insight of various business problems related to the
project. It is necessary to include this project into the management course.
Keeping

in

view

PERFORMANCE

the
OF

above

requirement

PARLE-GMARKET

the

present

ANALYSIS

FINANCIAL
OF

REALTY

ADVISORS COMPANY FOR SELLING HOMES, FLATS & PLOTS is

conducted to collect the information regarding the market performance of industry.
For conducting the study the following instrument is used.

MAHERA MEHMOOD
MBA IIIRD SEM

DECLARATION
This is to certify that this Dissertation entitled FINANCIAL PERFORMANCE
OF PARLE-GMARKET ANALYSIS OF REALTY ADVISORS COMPANY
FOR SELLING HOMES, FLATS & PLOTS is based on my own individual and
original research work. My indebtedness to other works and publications has been
duly acknowledged at the relevant places in the Dissertation. Further, it has not been
submitted in part/full for any diploma or degree programme of any university.

MAHERA MEHMOOD
MBA IIIRD SEM

CONTENTS
1. OBJECTIVE & SCOPE OF STUDY
2. RESEARCH METHODOLOGY
3. LIMITATION OF STUDY
4. HISTORICAL BACKGROUND
a. INDUSTRY PROFILE
b. COMPANY PROFILE
c. BRAND STRENGTH OF PARLE
5. ABOUT PARLE PRODUCTS PVT. LTD., PANTNAGAR
6. FUNCTION-WISE STUDY OF PLANT
7. INTRODUCTION TO INVENTORYFINANCIAL MANAGEMENT
8. DATA INTERPRETATIONa. CHARTS / GRAPHS
9. SWOT ANALYSIS
10. CONCLUSION

11. RECOMMENDATION
12. BIBLIOGRAPHY
13. APPENDIX
a. QUESTIONNAIRE

OBJECTIVE & SCOPE OF STUDY

InventoryFinancial is as old as man. Inventories are held to facilitate

product display and services to customers, batching in production in
order to take advantage of longer production runs and provide
flexibility in production schedule.
The objectives of InventoryFinancial management are as follows: 1. To satisfy the expected level of activities of the firm.
2. To provide a cushion in case the actual level of activity is
different than anticipation.
3. To carry a certain level of inventoryFinancial to meet a
contractual agreement.

4. To obtain a reasonable utilization of people and equipment.

5. To reduce dependencies of one another, and second, to enable
each organization schedule its operations independently of
another.
InventoryFinancial is an idle source having economic values. Optimum
inventoryFinancial means optimum investment. At the same time,
shortage must be avoided at any cost for preventing the stoppage of
production & consequent loss of goodwill & revenue.

Proper inventoryFinancial management sustains a satisfactory level of

supply

of

goods

&

services.

The

scope

of

inventoryFinancial

management, therefore, is to ensure the supply of right quantity of

materials at the right time with the right quality, at the right prices from
the right sources.

PREFACE
A long time ago, when the British ruled India a small factory was set up in the
suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929
and the market was dominated by famous international brands that were
imported freely. Despite the odds and unequal competition, this company called
PARLE PRODUCTS, survived and succeeded, by adhering to high quality and
improving from time to time.
A decade later, in 1939, PARLE PRODUCTS began manufacturing biscuits, in
addition to sweets and toffees. Having already established a reputation for
quality, the PARLE brand name grew in strength with this diversification. PARLE
GLUCOSE and PARLE MONACO were the first brands of biscuits to be
introduced, which later went on to become leading names for great taste and
quality.

HOW PARLE FOUGHT TO MAKE BISCUITS AFFORDABLE TO ALL?

Biscuits were very much a luxury food in India, when PARLE began production in
1939. A part from GLUCOSE AND MONACO biscuits, PARLE did offer wide
variety of brands.

However, during the Second World War. All domestic biscuit production was
diverted to assist the Indian soldiers in India and the Far East. Apart from this,
the shortage of wheat in those days, made PARLE decide to concentrate on the
more popular brands, so that people could enjoy the price benefits.
Thankfully today, theres no dearth of ingredients and the demand for more
premium brands is on the rise. Thats why; they now have a wide range of
biscuits and mouthwatering confectionaries to offer.

SUMMERY
This project InventoryFinancial Management has been undertaken
through the training programme at PARLE BISCUITS PVT. LTD. PANTNAGAR.

This project provides the knowledge and information about how the
inventoryFinancial is managed and also the study of the entire department

working in co-ordination with each other simply to achieve the organizations

common goal.

Introduction part consists of the Introduction of the company viz.,

Company Profile, Quality Commitment, Vision, Mission Statement, Marketing
Strength, Customer Confidence and The Brand Strength.

Parle Biscuits Ltd. was established in 1939 at Mumbai (the mother unit).
Parle Biscuits Ltd, Pantnagar was established in 4 th May, 2004. Its head office is
situated at Parle Products Pvt. Ltd., Ville Parle (east), Mumbai.

RESEARCH METHODOLOGY
Research methodology is a plan & procedure for carrying out the research.
Research methodology is the way of systematically solved the research problem.
This is the methodology adopted, while doing the project: TYPE OF RESEARCH DESIGN:
The research design is chosen as operational type.

STEPS IN RESEARCH:
Seven steps are followed in order to conduct the whole project.
SELECTION OF THE TOPIC

THEORY FOR THE TOPIC

SELETED RESEARCH DESIGN

DATA COLLECTED FROM THE COMPANY

ORGANIZING & ANALYZING THE DATA

DATA IS EVALUATED

CONCLUSION

SOURCRS OF DATA COLLECTION:

For collection of data both primary as well as secondary sources are used.
Primary data:
Data collection design:

Questionnaire: A questionnaire was developed which gave me answers to all

questions (research objective) and it was approved for enquiry of workmen.

Secondary Data:
Secondary data are those that are already been collected by others. These are
available in journals, periodicals details, research publications, official records
etc.
Data presented here have been also taken from the official records of the
company.

DURATION OF THE PROJECT:

The project work has been done from 13 th June, 2007 to 13th August, 2007 i.e. 4
weeks.

SAMPLE SIZE:
A sample of 25 workers was taken. They were chosen from different departments.
The past two years a record were taken and on the basis of this record study was
done.
It was found that for production batching system was adopted and process layout
was adopted.

Research Methodology
This chapter aims to understand the research methodology establishing a framework of evaluation
and revaluation of primary and secondary research. The techniques and concepts used during
primary research in order to arrive at findings; which are also dealt with and lead to a logical
deduction towards the analysis and results.
Research methodology has its special significant in solving operational & planning of industries to
gaining new knowledge relative problems.

Research design
The research design applied here was descriptive research & exploratory research design.
In case of descriptive research, we know the problem, we just have to find the solution to the
problem. Generally descriptive research design is applied after exploratory research design.

Methods of Descriptive Research Design

1. Survey
2. Interviews
3. Questionnaires
4. Other observations

DATA COLLECTION
This report is based primary and secondary data. Primary Data is collected by survey and personal
interviews.
Secondary data is collected by the study of various reports. The reports studied under secondary
data.

THE DATA SOURCE

The data has been taken from two sources

Primary data source

The primary data source has been collected through questionnaire by

Personally interviewing each respondent on a number of queries structured
in a questionnaire.

Secondary data source

Secondary data was collected from following sources

Prior research reports
Websites
Books
Personal consultation

THE AREA OF WORK

The investigation is around 100km. of Bareilly city. The reason for choosing this design is to get
responses from the industries.
The report is the result of a survey which was undertaken
around 100 Km. from Bareilly city. The objectives of the project have been fulfilled by getting
response from

industries about the HR policies through a personal Interview in the form of a

questionnaire.
Another objective of this project has been to getting responses of employees about
their HR policies through questionnaire.
The responses available through the questionnaires are used to evaluate the HR
policies of the

industries and to know the employees opinion about their HR policies. Parle is

willingness to analysis the internal and external environment of the industries.

The project also covers an analysis the job satisfaction of the employees.

THE SAMPLE SIZE

The sample size consists of 10 units of the industries around the 100 km. from
Bareilly.
The list of following companies is mention below under:1. L.H. Sugar Factories Ltd.
2. DABER INDIA LTD.
3. BRITANNIA
4. Nestl
5. CENTURY PULA & PAPER
6. Perfetti Van Melle India Pvt. Ltd.
7. B.L. Agro. (P) Ltd.
8. Marcury Delicious Food Products (P) Ltd.
9. Ashok Leyland.
10. Bajaj Auto Ltd.
10 employees of each company were randomly selected and their opinion about their human
resources policies was taken up.

LIMITATION OF STUDY

1-This project is based on the method of HR policies and due to constraint of time is not
possible to work on all tools and techniques of HR policies.
2- The data collection is also limited.
3- This project report is based on my own perception and finding so it can not use for
generalizing purpose.
4-Data are extracted from various employees and secondary sources so any error in the
statement will subsequent affect the company R&S process.

Data Analysis
For Employer
Ques: - what is the sector of this industry?
1) Private Sector
2) Public Sector
3) Joint Sector

Conclusion:- By this question, I come to know that 60% industries are private sector , 30% in
public sector and 10% in joint sector.

Ques: - What is scale this industry?

1) Large Scale
2) Medium Scale
3) Small Scale

Conclusion:-

Answering this question is industries having 70% in large scale , 20% in

medium scale and 10% in small

Ques:- What is the number of manpower in your organization?

1) Staff
2) Company roll
3) Contract based
4) Casual based

Conclusion:- Answering this question 20% employees are in staff, 35% employees are in
company roll, 25% employees are in contract based and 20% employees are in casual based.

Ques: - What are the methods adopted to improve productivity?

1) Productivity improvement
2) Quality improvement
3) TPM
4) Other methods

Conclusion:- Answering this question 30% industries are adopting productivity improvement
method, 30% industries are adopting quality improvement method, 30% industries are adopting
TPM method and 10% industries are adopting others improvement methods.

Ques:- Do you have medical reimbursement scheme?

1) Yes
2) No

Conclusion:- Answering this question 90% industries are having medical reimbursement
scheme.

Ques:- Are you providing canteen facilities?

1) Yes
2) No

Conclusion:- Answering this question 90% industries are having the canteen facilities.

Ques:- What is the age of retirement of employees of this industry?

1) 56- 58 Years
2) 5860 Years
3) 60- 62 Years

Conclusion:- Answering this question 20% industries are having employees retirement age 5658 years, 50% industries are having employees retirement age 58-60 years and 30% industries are
having employees retirement age 60-62 years.

Ques:- Do you have career plan for employees?

1) Yes
2) No

Conclusion:- Answering this question 90%

employees.

industries are having career plan for their

Ques:- Do you have services gifts scheme?

1) Yes
2) No

Conclusion:- Answering this question 80% industries are having services gifts scheme.

Ques:- Do you have your own transport facilities?

1) Yes
2) No

Conclusion:- Answering the question 90% industries are having own transport facilities.

Ques:- How much amount is deducted from transport Facilities?

1) 200-400 Rs.
2) 400-600 Rs.
3) 600-800 Rs.
4) More than 800 Rs.

Conclusion:- Answering this question 10%

industries are deducted 200-400 rs , 20%

industries are having 400-600rs, 40% industries are having 600-800rs and 30%
deducted more than 800 rs.

industries are

Ques:- How much conveyance allowance is given to employees?

1) 200-400 Rs.
2) 400-600 Rs.
3) 600-800 Rs.
4) More than 800 Rs.

Conclusion:- Answering this question 20% industries are given 200-400rs conveyance
allowance, 30% industries are given 400-600rs, 30% industries are given 600-800rs and 20%
industries are given more than 800rs.

Ques:- Do you have house rent allowance?

1) Yes
2) No

Conclusion:- Answering this question 90% industries are having house rent allowance.

Ques:- How much amount is deducted from house rent allowance?

1) 200-500 Rs.
2) 500-800 Rs.
3) 800-1100 Rs.
4) More than 1100 Rs.

Conclusion:- Answering this question 20% industries are deducting 200-500rs from house rent
allowance, 30% industries are deducted 500-800rs, 40% industries are deducted 800-1100rs and
10% industries are deducted more than 1100rs .

Ques:- Do you have overtime facilities?

1) Yes
2) No

Conclusion:- The result of this question came as 90% industries are having overtime facilities
for their employees.

Ques:- Do you have childrens allowance?

1) Yes
2) No

Conclusion:- The result of this question came as 80% industries are having children allowance
for employees.

Ques:- Are you providing Bonus?

1) Yes
2) No

Conclusion:- By this question 90%

employees.

industries are providing bonus for their

Ques:- What is the method of calculation of Bonus?

1) As per HR policy
2) As per Govt. norms
3) Both of these

Conclusion:- By this question 70% industries are adopting both methods i.e. as per HR policy
and as per govt. norms.

Ques:- Do you have incentive schemes?

1) Yes
2) No

Conclusion:- Answering this question 90% industries are having incentive schemes.

Ques:- Do you have any Awards?

1)

incentive

2) Attendance Award
3) Star of the month
4) Quality control Award
5) All of these

Conclusion:- Answering this question 90% industries are having all of these awards relative to
the industries.

For Employees
Ques:- What is your age?
1) 20 35 Years
2) 35- 50 Years
3) 50 65 Years

Conclusion:- Answering this question 40% employees are 20-35 years, 50% employees are 3550 years and 10% employees are 50-65 years.

Ques:- Do you agree with your training programs?

1) Yes
2) No

Conclusion:- Answering this question 90% employees are agree with your training programs.

Ques:- Are you satisfied your canteen facilities?

1) Yes
2) No

Conclusion:- Answering this question 90% employees are satisfied your canteen facilities.

Ques:- Are you agree with your medical facilities?

1) Yes
2) No

Conclusion:- Answering this question 90% employees are agree with your medical facilities.

Ques:- Are you satisfied your health scheme policy?

1) Yes
2) No

Conclusion:- Answering this question 70% employees are satisfied with your health
facilities.

Ques:- Are you satisfied your welfare programs?

1) Yes
2) No

Conclusion:- Answering this question 80% employees are satisfied with your welfare programs.

Ques:- Are you having house rent allowance?

1) Yes
2) No

Conclusion:- Answering this question 80% employees are having house rent allowances.

Ques:- Are you satisfied your Grievance handing procedure?

1) Yes
2) No

Conclusion:- Answering this question 90% employees are satisfying with your grievance
handing procedure.

Ques:-Are you agree your promotion policy?

1) Yes
2) No

Conclusion:- Answering this question 90% employees are agree with your promotion policy,

LIMITATION OF STUDY

Management of InventoryFinancial has some benefits as well as some

limitations also. Proper inventoryFinancial management is important to the
financial health of the corporation; being out of stock forces customers to
turn to competitors or results in a loss of sales. Excessive level of
inventoryFinancial, however, results in large inventoryFinancial carrying
costs, including the cost of the capital tied up in inventoryFinancial
warehouse fees, insurance etc.
The major problem with managing inventoryFinancial is that the demand
for a corporations product is to a degree uncertain and the supply of raw
materials used in its product is also some what uncertain. The
corporations own production process is somewhat uncertain due to
possible equipment breakdowns and labour difficulties.
InventoryFinancial is difficult to manage because it carries so many lines
of responsibility. Poor inventoryFinancial management results in an illiquid
corporation.

Funding Agency

UN Industrial Organization
CFIB
Tamilnadu Industries Department
DFC Delhi
HP Financial Corporation
Rabobank - Corporate Solutions

Equipments and Suppliers

Apple International Eng. Pvt Ltd.

Dong Yang Food Machinery Co Ltd
KDR Industries India
Multipack Pvt Ltd.

VDI Exports
Mechtech Designers & Engineers pvt. Ltd.
Sun Beam Machines
Biscuit Making Machinery
Automatic wafer machinery
Shri Dashmesh Castings
Cream Biscuit Sandwiching Machines

Manufacturers in India

WIBISCO

Britannia Industries

Parle Biscuits

Kabisco biscuit industry

Maxwellinc co.

sumo biscuits

Real Bakers Pvt Ltd.

Cremica foods

Global Companies

Griffins Biscuit Company

Kambly, Switzerland

Ceylon Biscuits Ltd

Arnotts Biscuit

INDUSTRY PROFILE
About FBMI (Federation of Biscuit Manufacturers of
India)
Established in 1950, from gathering of CEOs of small, medium and large Biscuit
manufacturing organizations in the countrys capital city, the Federation of
Biscuit Manufacturers of India, popularly known as FBMI has come to stay as

the premier forum of the organized segment the biscuit industry in India, by
virtue of its effective servicing and result oriented activities, with the prime
objective of protecting and promoting the interests and development of the
Biscuit industry.
During the five and a half decades of post-independent India, the biscuit
industry in the country has achieved a position of pre-eminence as the third
largest producer of Biscuits in the world, after the USA and China.

BISCUIT INDUSTRY IN INDIA

Biscuit industry in India in the organized sector produces around 60% of
the total production, the balance 40% being contributed by the
unorganized

bakeries.

The

industry

consists

of

two large

scale

manufacturers, around 50 medium scale brands and small scale units

ranging up to 2500 units in the country, as at 2000-01. The unorganized
sector is estimated to have approximately 30,000 small & tiny bakeries
across the country.
The annual turnover of the organized sector of the biscuit manufacturers
(as at 2001-02) is Rs. 4,350 crores.
In terms of volume biscuit production by the organized segment in 200102 is estimated at 1.30 million tonnes. The major Brands of biscuits are
-

Brittania,

Parle

Bakeman,

Priya

Gold,Elite,Cremica,

Dukes,

Anupam, Horlicks, Craze, Nezone, besides various regional/State

brands.
Biscuit industry which was till then reserved in the SSI Sector, was
unreserved in 1997-98, in accordance with the Govt Policy, based on the
recommendations of the Abid Hussain Committee.
Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs
SmithKline Beecham, Heinz etc entering the biscuit industry in India,

most of them, with the exception of SmithKline Beecham (Horlicks

Biscuits), have ceased production in the country.
Biscuit is a hygienically packaged nutritious snack food available at very
competitive prices, volumes and different tastes. According to the NCAER
Study, biscuit is predominantly consumed by people from the lower
strata of society, particularly children in both rural and urban areas with
an average monthly income of Rs. 750.00.
Biscuit can he broadly categorized into the following segments (Based on
productions of 2000-01):
Glucose

44%

Marie

13%

Cream

10%

Crackers

13%

Milk

12%

Others

8%.

As regards the consumption pattern is concerned. surveys and estimates

by industry from time to time indicate the average consumption scenario
in the four Zones have been more or less close to each other, as below:
Northern States:

28%

Southern States:

24%

Western States:

25%

Eastern States:

23%

Biscuit manufacturing as well as other bakery products like Bread etc

are agro based industries, with the major inputs - wheat flour/atta
sugar, milk vanaspati/vegetable oil etc all being agriculture produces.

Biscuit Production
According to the production figures of members available upto the calendar
year 2003, the total production was 625000 tonnes as against 475000

tonnes in the previous year. The production of biscuit for the last 11 years
is as under:
1993 -

167750

1994 -

180526

1995 -

202567

1996 -

222371

1997 -

362000

1998 -

400000

1999 -

425000

2000 -

450000

2001 -

465000

2002 -

475000

2003 -

625000

ASSOCIATE BODIES
All India Bread Manufacturers
Association

Suite No. 23, Second Floor

Indra Palace, H-Block (Middle Circle)
Connaught Place, New Delhi 110 001

Shri Vinod Tiwari

President

Shri K P Mohandas
Secretary

Tel : 23327421, 23328784

Telefax : 23310760
Email : fbmi@rediffmail.com
phdcci@del2.vsnl.net.in

Confederation of Indian Food

Trade & Industry

Ms. Parna Dasgupta Tel : 23738760-71

Director
Fax : 23320714, 23721504
Email : cifti@ficci.com

Confederation of Indian
Industries

Shri Dilip Chenoy

Federation House
Tansen Marg
New Delhi 110 001

23, Institutional Area

Lodhi Road
New Delhi 110 003

PHD Chamber of Commerce and

Industry

Dy. Secretary General

Shri D S Chadha
Technical Advisor

Shri Ravi Wig

President

Tel : 24629994-7
Fax : 24626149,
24633168/246

Email : ciico@ciionline.org
website : www.ciionline.org
Tel : 26863801-04
Fax : 26863135
Email:

PHD House, 4/2 Siri Institutional Area

August Kranti Marg
New Delhi 110 016

Dr B P Dhaka

Society of Indian Bakers

Shri Jai Prakash

Tel : 25728771
Fax : 25728771

Wheat Products Promotion

Society

Shri R P Jain

Tel : 26185872
Telefax : 26185878
Email : info@wpps.org

F-1, Jyoti Building

16-A/19, Ajmal Khan Road
Karol Bagh, New Delhi 110 005

Assocom-India, A-416, Ansal Chamber-I

3, Bhikaji Cama Place

Secretary General
President

President

phdcci@del2.vsnl.net.in

website : www.phdcci.org

New Delhi 110 066

COMPANY PROFILE
ABOUT THE COMPANY UNIT IN RDR:
BHOOMIPUJAN

4 TH MAY 2004

MACHINE ERECTION ACTIVITY

21 ST SEP. 2004

FOUNDED BY

MR. NAROTAM CHAUHAN

PRODUCT PROFILE IN PANTNAGAR PLANT:

PARLE G BISCUITS

QHOLE COMPANY BRANDS:

PARLE G

KRACKJACK

MONACO

MARIE CHOICE

HIDE SEEK

FUN CENTER

CHEESLINGS

JEFFS

SIXER

HUMAN RESOURCES:

PEOPLE PERSPECTIVE IS IMPORTANT

EMPLOYEE ORIENTED

CONTINUOUSLY MOTIVATE

TRAIN & DEVELOP THE WORKFORCE

EMPLOYEE PROFILE:
TOTAL NO. OF WORKERS

900

STAFF MEMBERS

62

Parle Products Pvt Ltd. Bombay promotes the company, which is Holding
company of the Parle Biscuits Pvt Ltd. The Directors of M/s Parle Products Pvt
Limited are:

BOARD OF DIRECTORS:
MR. ATUL K. SHAH
MR. R. S. NEVATIA
MR. BRAJESH K. TRIPATHI
MR. S. N. VERMA

AUDITORS:
DELLOIT HARSHSKIN & SONS

INTERNAL AUDITORS:
BOHARIWALA & COMPANKER

BANKERS:
UTI
HDFC
BANK OF PUNJAB

MOTHER UNIT:
PARLE PRODUCTS PVT. LTD.
NORTH LEVEL CROSSING
VILE PARLE (East)

MUMBAI
CORPORATE OFFICE:
NIRLON HOUSE
A.B. ROAD
MUMBAI

THE BISCUIT BASKET

Parle-G: The taste, energy and nourishment Parle-G offers, along with its
quality and value-for-money, contribute to making it an unchallenged
success. Apart from being Indias largest selling biscuits, Parle-G is the
winner of 8 Gold and 11 Silver awards at the Monde Selection.

Krackjack:

A little sweet-A little salty. Thats what makes Krackjack

very, very delicious! This delightful biscuit is acclaimed in India and across
the world for its controversial sweet and salty taste. Krackjack has won 11
Gold, 3 Silver and 1 Bronze award at the Monde Selection.

Monaco: This original O shaped salted biscuit makes people exclaim Oh,
Monaco. Whether plain or with toppings, Monaco is delicious. An ideal
party time delicacy one can create more scrumptious snacks by combining
Monaco with a choice of toppings. Light, crisp and fresh, its no wonder
that Monaco is Indias largest selling salted biscuits. Variants include
onion, methi, zeera and nimkin.

Marie Choice: Solid Milk, Solid Taste- this summarizes the qualities of
this

delicious biscuit.

Hide & Seek: This cookie biscuit is made up of large quantity of chocolate
chips. Crunch into it or let it melt in the mouth to seek out the real taste of
chocolate.

Fun Center : Parles Fun Center range has the highest cream content
amongst biscuits in the category. Best of all, one gets a choice of delicious,
creamy flavors, such as, orange, elaichi (cardamom), and chocolate cream.

Jeffs: Rectangular shaped, salted biscuit, flavored with cumin seed (Zeera)
fir that delicious, crunchy taste. The high-count of cumin seed makes Jeffs
a more scrumptious savory-an absolute must, for munching just about
anytime.

Sixer: This six-sided, salted delighted is one hard-to-resist savory.

Whatever the occasion, Sixer makes for a great salty snack. Be it a picnic, a
party, or just any snack time, Sixer gives that crunchy, munchy delicious,
salty taste that leaves one wanting for more!

EMERGING TRENDS OF THE BRAND

Since its inception in the 30s, Parle biscuits have prided itself in offering quality
products that are affordable to the common man. The marketing mix has evolved
with the times..

THE PRODUCT
Parle biscuits have a range of variants in its product portfolio. The popular
brands Parle- G, Krackjack, Monaco and its variants (Zeera, onion and Methi) are
available in packets of various convenient sizes. New products like hide & seek
are a foray in to the premium segment.

THE PRICING STRATEGY

The biscuit major has not bothered to raise the price of its flagship brand
Parle-G foe the past 6-8 years and has always tried to provide its offering at
nearly 33% discount as compared to other competitive brands.

THE PROMOTION POLICY

The consumer is the focus of all activities at Parle.

Maximizing value to

consumer and forging enduring customer relationships are the core endeavors at
Parle. Parle-G My Dream Come True contest was one of its biggest
promotional ventures (2.5 crore) which gave contestants a chance to fulfill their
dreams. Discounts, gift offer schemes are other popular promotional offerings.

THE PLACE
The well-entrenched distribution system (the company covers 12-15 lakh outlets
across the country), with 39 depots at strategy points all over the country. From
the depots, the biscuit are sold to wholesalers and further to retailers.

THE PACKAGING
Biscuit has under gone a swift transformation. From the earlier waxed-paper
packing, Parles BOPP offering is not only stylish and enticing but also increases
the shelf life of the biscuits.

PARLE PRODUCTS PVT. LTD. PANTNAGAR

The operations at Pantnagar unit started in 4 th May, 2004 with two plants for
Parle-G. This unit has a capacity to produce 200-250 tones/day. The company
works in co-ordination with Parle Product Limited Mumbai, Banglore, Bhuj,
Parle Biscuits Ltd. Neemrana, Bahadurgarh, the forty CMUs & the thirty
four depots. The factory operates in three shifts of eight hours each. At present
there is only one line operating Parle-G.

Departments:

Purchase

Finance & Accounts

Quality Assurance

Production

Packaging

Dispatch

Stores

The organization follows a Flat Structure with less hierarical level. The head of
the department reports to the general manager through direct communication.
The working atmosphere is not stressful with enough work-flexibility given to
staff and managers.

The factory also has an Auditorium & Viewing gallery which is used during the
visit of school children and visitors.

FUNCTION-WISE STUDY OF
DEPARTMENTS AT PLANT
PURCHASE DEPARTMENT
Purchase is necessary to fulfill the need for raw material, packing material and
machinery. Raw material purchases are done through a tender system wherein
quotations are received from the suppliers and send for verification to Bombay
where maximum prices are fixed. The hence maintaining a minimum
inventoryFinancial of three days. The purchase order is placed based on the
aspects of
Price
Quality
Service (Delivery)
Orders are given in the following intervals:
Raw Materials

07 days

Packing Material

15 days

Chemicals

15 days

Engineering items

30 days

The MATERIAL INWARD NOTE (M.I.N.) is an essential document in the

purchase of goods and is necessary for payments. For replacement purposes
though there is no need for a new M.I.N.

Packing Materials, which include films for wrappers, inks, chemicals,

corrugated boxes, poly-bags, complaint slips, is ordered according to

production requirements and from reliable suppliers. Lead-time of a month is

given for packing materials.

In case of engineering items, indents are prepared according to the

requirements of the engineering department, stock verification takes place, and
if needed purchase orders are placed.

Following procedure is adopted for purchasing the materials:

Purchase order given to the supplier based on the price and quality offered by
them.

Gate entry to stores

Sample testing (by quality assurance dept.)

Approval and unloading of stock to stores

M-I-N (Material Inward Note) prepared by stores

Crosschecking the bills (the order rate the quantity) with that of the purchase
order and rectification if necessary.

Payment of bills by the accounts dept. using the M-I-N.

FINANCE AND ACCOUNTS DEPARTMENT

Financial activities mainly include the following:
1. PAYMENTS & COLLECTIONS
2. BANKING TRANSACTIONS
3. CASH TRANSACTIONS

1. PAYMENTS:
Payment aspects include payments of bills of the Bahadurgarh factory as well of
the six contract-manufacturing units (CMU) under it. The payment of raw
materials is within a week except for sugar, which is an advance payment. For
engineering items it is done within a month. Payment includes the following:
A. Payment to suppliers (of raw materials, packing, stores and
spares).
B. Payment of excise advance.
C. Payment of interim advance.
D. Processing charges.
E. Payment of depot and freight expense.

1. A) PAYMENTS TO SUPPLIERS:

Receive the M-I-N from stores.

Verification of the MIN from stores with the purchase order so as to cross check
actual rate with the suppliers bill. MIN consists of quantity of raw material
accepted and shortage amounts.

Passing of the bills through the PURCHASE VOUCHER and updating of the
following ledgers:
Purchase book.
Supplier Ledger.
General Ledger.
Stock Ledger.

ACCOUNTING ENTRY:

Purchases A/c

Dr.

Cenvat A/c

Dr.

To supplier A/c

PAYMENT TO SUPPLIERS OF CMUS:

The payment to the suppliers at the CMUs is done via Bombay, which verifies the
MIN, Bill rates according to the purchase order. The original copy is sent by
courier and also sent by email. The systems dept. downloads the data and
transfers it to the finance dept. for payment. Thereafter the supplier is firstly
credited by passing the PJV (purchase journal voucher) and then debited by
making the bank payment.

B) PAYMENT OF DEPOT AND FREIGHT EXPENSES:

The depot expenses from the Bahadurgarh factory are paid at the end of the
month. Schedules are compared with the actual payments and adjusted if there
are changes in rent etc to be paid to the depot.
1.

Depot Expenses include the following :

Godown rent.
Miscellaneous expenses.
Service charges.
Establishment expenses.

2.

Computer Stationery

3.

Secondary Freight

4.

Incentives

5.

Service TAX (10%)

2. BANKING TRANSACTIONS (FOR COLLECTIONS AND PAYMENTS):

These are a routine at Parle Biscuits Pvt. Ltd.
BANKS:
UTI
BANK OF PUNJAB
PUNJAB NATIONAL BANK

The daily balance and recent transactions at these banks are received through
fax, phone, and through the telebanking system. UTI send their bank balances
through telebanking system, whereas the balances at Bank of Punjab are
received by Phone. Daily balances are necessary to prepare the DAILY
LIQUIDITY REPORT.
This report is essential for:

 FUND MONITORING
TO AVOID OVERDRAFT PROBLEMS.
Current account facilities all over India are provided by UTI, Bank of Punjab,
Corporation Bank, and standard chartered. Collections from all the other banks
get transferred to Bank of Punjab, which is the main bank of Parle

4. CASH TRANSACTIONS:
These are also essential for the following purposes:
Medical and conveyance reimbursement to staff and workers.
Small purchases of stores.
Fir travel which includes hotel payment, tel. and D.A. the sum
varies with the category of Staff.
Day to day expenses for stationary and Freight Charges in few cases.
There is a Mediclaim scheme provided for senior management staff, which can be
availed by them during the year. Daily cash transactions are about Rs. 20000 or
so. Monthly wages and salaries, leave travel concessions are given through the
Bank of Punjab using respective accounts.

QUALITY ASSURANCE / CONTROL DEPARTMENT

In concurrence with the trademark of quality that Parle stands for the Quality
Assurance department seeks to control and maintain quality in three stages:

1. QUALITY CHECKING.
2. PROCESS CHECKING.
3. QUALITY PACKING.

1. Quality Checking:
It is necessary to use standard inputs for a quality consumable product such as
Biscuits. All the raw materials used, need to be quality tested and approved
before consumption. Therefore sample testing is done and the test report is sent
to the store mentioning the date after issuing a batch no. the following tests are
done for some of the raw materials :
Wheat Flour:
Spreading factor test.
Moisture %
WAP (water absorbency power)
Gluten %
Sedimentation value
Ghee:
Moisture %.
FFA (free fatty acids).
Peroxide value
Iodine value.
Rancidity Test.
Chemicals:
Purity Tests.
Moisture % .
A testing report register is maintained (authorization by stores and QC dept.)
which contains details of the supplier, the item and the quantity accepted.

2. Process Checking :
Issue of raw material from stores to the mixing section involves:
1.

Checking the request of the mixing section.

2.

Issuing raw materials as per FIFO SYSTEM (First in First Out).

3.

Maintenance of good storage conditions for all raw materials.

4.

Checking the stock of raw materials (daily / shift basis).

Weighing of the raw materials:

Weighting of raw materials as per batch requirement (by the mixing
section).

Mixing of the raw materials & checking the quality of batch prepared:
1.

Checking the mixing period.

2.

Checking the presence of all raw materials as per formula.

3.

Fermentation time and room temp.

Weighing of raw biscuits after molding / cutting :

This is necessary for controlling the final weight of biscuits as per
requirement.

Testing of biscuits after Baking for :

1.

Weight, Taste & Colour.

2.

Stack weight/length and width.

3. Quality packing:

This section is automated and the following quality measures are undertaken
during packaging.
1.

Aesthetic value of the packet (checking the printing shades of

wrapper).

2.

Positioning of the packet on the machine and proper sealing of

pakets (lengthwise and crosswise).

3.

Mentioning the source of manufacture, Pkd., MRP, bar code,

ingredients, weight and slug length.

4.

Checking the no. of biscuits and Moisture % of biscuits (when

packed).

5.

Checking presence of broken biscuits during packaging.

6.

Proper polypack sealing & Coupons in poly bags with proper batch
and Pkd. no.

7.

Proper taping of corrugated boxes (mentioning the batch and Pkd.

no.).

8.

Proper palletizing and loading of the boxes.

PRODUCTION DEPARTMENT
The sales team in the market estimates the requirements at the wholesalers end
and reports to the head office at Mumbai. The allotted product requirements are
dispatched to all the production units, where the monthly production schedule is
prepared by the production team.

The factory has Two plant producing Parle-G. The total capacities of the plants
(tone/month) etc.

PARLE-G CONTENTS
Parle-G is the soft dough variety of biscuit. Around 75 batches of Parle-G are
produced per shift.

Standard Requirements

Packaging Standards

Moisture %
Protein
Energy

Ca
Fe

2-2.5
6.5
450 Kcal.

50 m
2m

Net wt.
No. of Biscuits
No. of packets in a poly

100
16

bag
No. of poly bags in a c-box

24
6

MANUFACTURING PROCESS:
It describes the products manufacturing process.
Description of the manufacturing process (Include a diagrammatic scheme):
Sugar is ground

Wheat flour, ground sugar, chemicals are passed through separate sieves and
discharged into a high speed mixer other ingredients i.e. vegetable fat, skimmed
milk powder, water,

Chemicals are flavors are separately discharged into the same mixer

The ingredients are mixed in the mixer for a prefixed time to form the dough

The dough is discharged to a hopper & passed through a metal detector & dough
is removed if metal piece is found

The dough is transffered to a rotary moulding die to form biscuits in the desired
shape. The biscuits are transferred to a wire band on which the biscuits travel in
the baking oven.

Baked biscuits are checked for proper baking and colour.

Baked biscuit are cooled on a conveyor.

Baked biscuits are again passed through a metal detector and biscuits are
automatically removed if a metal piece is present

The baked biscuits are checked for dimensions and weight before wrapping.

The biscuits are wrapped on an automatic wrapping m/c.

Wrapped biscuits are first packed in poly bags and then in corrugated boxes.

PROCESS FLOW DIAGRAM FOR BISCUITS:

Receiving of Raw Materials
Insepction and testing
Storage of raw materials in different stores as per required storage conditions

Preparation of various raw materials for Batch preparation and weighing

Wheat Flour sieving

Sugar grinding

sieving of chemicals
Other additives

Mixing of all ingredients

Dough transfer to hopper and then to conveyor belt

Metal detector
Moulding

Baking
Final inspection

Cooling

Automatic Packing

Storage

Dispatch

INVENTORYFINANCIAL MANAGEMENT
WHAT IS INVENTORYFINANCIAL?
An inventoryFinancial is a stock or store of goods. The term inventoryFinancial
includes the following categories of items:1. Production Inventories: - Raw Materials, parts and components which
enter the firms product in the production process.
2. MRO Inventories: - Maintenance, Repair and Operating supplies which
are consumed in the production process, but, which do not become part of
the product.
3. In-Process Inventories: - Semi-finished products found at various stages
in the production operation.
4. Finished Goods Inventories: - Completed products ready for shipment,

INVENTORYFINANCIAL COSTS:
Inventories cost money. The cost factor must be considered while taking any
decision regarding inventories. InventoryFinancial cost includes ordering cost,
carrying cost, out of stock or storage cost and capacity cost. The elements of
each of the cost are the following:

1. Ordering Costs

A. Cost of placing an order with a vendor of materials:

a) Preparing a purchase order
b) Processing payments
c) Receiving and inspecting the material.
B. Ordering from the plant:
a) Machine set-up.
b) Start-up scrap generated from getting a production run
started.

2. Carrying Costs
A. Costs connected directly with materials:
a) Obsolescence.
b) Deterioration.
c) Pilferage.
B. Financial Costs:
a) Taxes.
b) Insurance.
c) Storage.
d) Interest.

3. Out-of Stock Costs

A. Back ordering
B. Lost sales

4. Capacity Costs
A. Overtime payments when capacity is too much.
B. Lay-offs and idle time when capacity is too large.

INVENTORYFINANCIAL

MANAGEMENT

&

CONTROL:
Because of high costs involved in inventories, their proper management and
control assume considerable importance. InventoryFinancial management
involves the development and administration of policies, systems and procedure,
which will minimize total costs relative to inventoryFinancial decisions and
related functions such as customer service requirements, production scheduling,
purchasing and traffic.
On the other hand, InventoryFinancial control is defined in a narrower sense
that

inventoryFinancial

management

and

pertains

primarily

to

the

administration of established policies, systems and procedures. For Example, the

actual steps taken to maintain the stock levels or stock records refer to
inventoryFinancial control.

Benefits of InventoryFinancial Management & Control:

The benefits of InventoryFinancial Management & Control are as follows:
InventoryFinancial control ensures an adequate supply of materials and
stores,

minimizes

stock

of

inputs

and

storage

and

avoids

costly

interruptions in operations.
It keeps down investment in inventories, inventoryFinancial carrying costs
and obsolescence losses up to the minimum.
It

facilitates

purchasing

economies

through

the

measurement

of

requirement basis of recorded experience.

It permits a better utilization of available stocks by facilitating interdepartment within a company.
It serves as a means for the location and disposition of inactive and
obsolescence stores.

 Perpetual inventoryFinancial values provide a consistent and reliable basis

for preparing statements.

Process of InventoryFinancial Management & Control:

InventoryFinancial Management & Control refers to the planning for quantities of
materials at all stages in the production cycle and evolving techniques which
ensure the availability of planned inventories. Four steps are involved in the
process:
A. Determination of optimum inventoryFinancial levels and procedures
of their records and adjustments.
B. Determination of the degree of control that is required for best
results.
C. Planning and design of the inventoryFinancial control systems and
D. Planning of the inventoryFinancial control organization.

InventoryFinancial Control Techniques

InventoryFinancial control techniques are employed by the inventoryFinancial
control organizational framework of one of the basic inventoryFinancial models,
viz., fixed order quantity, re-order period system. InventoryFinancial control
techniques represent the operational framework to management and help realize
the objectives of inventoryFinancial management and control.
Several techniques of inventoryFinancial control are in use and it depends
on the policy of the firm to adopt any of the techniques. The techniques most
commonly used are the following:

Always better control (ABC) classification.

High, medium and low (HML) classification.

Vital, essential and desirable (VED) classification.

Scarce, difficult and easy to obtain (SDE).

Fast moving, slow moving and non-moving (FSN).

Economic Order Quantity (EOQ).

Two bin system.

Material Requirement Planning.

Just-in-time.

Max-Minimum System.

ABC Analysis:
One of the widely used techniques for control of inventories is the ABC (Always
Better control) analysis. The objective of ABC control is to vary the expenses
associated with the maintaining appropriate control according to the potential
savings associated with a proper control. For example, an item having an
inventoryFinancial cost of Rs. 1,00,000/- has a much greater potential for
saving expenses related to maintaining inventories on an item with a cost of
Rs. 100/-. The ABC approach is a means of categorizing inventoryFinancial
items into three classes A, B and C, according to the potential amount to
be controlled.
Once the inventoryFinancial is classified, we have a firm base for deciding
where we will put our control. Logically, we expect to maintain strong controls
over the A, items taking whatever social actions needed to maintain
availability of these items and hold stocks at the lowest visible levels
consistent with meeting demands. With the C group, we may maintain
somewhat higher safety stocks, order more months of supply, expect lower
levels of customer service, or all the three. Due to this selective approach, the
ABC analysis is often called the Selective InventoryFinancial control
Method (SIM).
The inspiration behind the ABC analysis has been drawn from Vilfredo
Pareto, an Italian economist and sociologist (1842-1923). Paretos principle

was brought to the attention of people concerned with inventoryFinancial

management by H. Ford Dickie, who applied Paretos law to inventoryFinancial
and developed the general concept of ABC analysis.
The following procedure is suggested for developing an ABC analysis:
1. List each item carried in inventoryFinancial by number or some other
designation.
2. Determine the annual volume of usage and rupee value of each item.
3. Multiply each items annual volume of usage by its rupee value.
4. Compute each items percentage of the total inventoryFinancial in terms of
annual usage in rupees.
5. Select the top 10 % of all items which have the highest rupee percentages
and classify them as A items.
6. Select the top 20 % of all items with the next highest rupee percentages
and classify them as B items.
7. Rest of the items is classified as C items.
The following Table illustrates the above procedure:

Example of ABC InventoryFinancial Analysis

InventoryFinancial
Annual use in Rs.
% of total
Items
inventoryFinancial
usage in Rs.
101
3000
0.3%
B102
40000
4.0%B
103
2000
0.2%
104
10000
1.0%
105
5000
.05%
A106
400000
40.0%A
107
7000
0.7%
108
9000
0.9%
109
8000
0.8%
A110
300000
30.0%A
111
1000
0.1%
B112
50000
5.0%B
113
15000
1.5%
B114
20000
2.0%B
B115
90000
9.0%B

TOTAL 20 ITEMS
Items A
106
110
10% of 20 items
10% of Rs. 1,00,000

Rs. 10,00,000
Items B
102
112
114
115
20% of 20 items
20% of Rs. 1,00,000

100.0%
Items C
All 9 remaining items.
70% of 20 items
70% of Rs. 1,00,000

Economic Order Quantity Technique:

Economic Order Quantity (EOQ) is the technique which solves the problem
related to the size of the order. EOQ or Opt. Q (Optimum Quantity) is the order
size at which the comprising ordering costs plus carrying costs is the least.

Ordering Costs are the costs of placing a separate order multiplied by the
number of separate orders placed in the period.
Ordering Cost = (D/Q)S

Carrying Costs can be calculated based on the assumption that annual cost of
carrying a particular stock item on average, half the stock is on hand all the time
in addition to the safety or buffer stock.
Carrying Cost = (Q/2)H
Where,
Q = Order Quantity
D = Demand
S = Ordering Cost
H = Holding Cost

The following figure explains it graphically:

Graphing the two costs, viz., Holding Costs and Ordering Costs show exactly,
where the total cost curve is at its lowest point. An examination of the two curves
reveals that the carrying cost curve is linear i.e., the more the inventoryFinancial
held in any period, greater will be the cost of holding it. On the other hand,
Ordering cost curve is different. Ordering in small quantities means more
acquisition and higher ordering costs. The ordering costs decrease with
increase in the order size.

EOQ can be calculated with the help of a mathematical formula. Following

assumptions are implied in the calculation: 1. Demand for the product is constant and uniform throughout the period.
2. Lead time (time from ordering to receipt) is constant.
3. Price per unit of product is constant.
4. InventoryFinancial holding cost is based on average inventoryFinancial.

5. Order costs are constant, and

6. All demands for the product will be satisfied.

EOQ =

2DS/H

Where,
D = Annual Demand
S = Cost of placing an order
H = Holding Cost per unit

EOQ Technique is highly useful in as much as it answers the question i.e., how
much to order and in so doing, establishes the frequency with which, orders are
applicable both to single items and to any group of stock items with simple
procurement costs. Its use causes the sum of the two costs to be lower than the
system of replenishment.

Just-in-Time Technique:

Just-in-Time (JIT) technique is highly used in recent management circles these

days. The concept is alternatively known as ZIPS (Zero InventoryFinancial
Production System), MAN (Materials As Needed), NOT (Nick Of Time) or ZIN (Zero
INventoryFinancial).

As a concept, JIT means that virtually no inventories are held at any stage of
production and that the exact number of units is brought to each successive
stages of production at the right time.

The JIT concept originated from the Motomachi plant of Toyota in Japan, where
system has been perfected and results achieved. The plant has a long line of
trucks outside with full loads of automotive parts and components for the
assembly line. As one truck comes out at one end of the plant, another gets
inside. There is no warehouse for the parts. Upholstered seats, for example, are
fed to the production line directly to the back of the truck.

Xerox, Maruti Udyog Ltd., and FSL (Food Specialities Ltd.) are the example of
such companies that are using JIT concept to catch up with the Japanese
standards of efficiency.

COMPONENTS OF THE INVENTORYFINANCIAL CONTROL

SYSTEM
Adequate records are a must in any control system, but too many records can
have adjustors effect. No. one inventoryFinancial control system will work in all
plants. Each system must be developed to fill specific requirements. Practically
every system, however, makes use of certain forms that have proved to be
essential to good inventoryFinancial control. These include (1) stores requisitions,
(2) receiving reports, (3) balance-of-stores records, and (4) material requisition
forms.

Stores requisitions: The stores requisitions are a request from stores or

inventoryFinancial control to purchasing, giving the purchasing department
authority to buy the quantity and type of material specified. Stores requisitions
are used to obtain initial supplies and to replenish stocks.

Receiving reports: The form is usually executed in triplicate, with the original
going to purchase, one copy retained in stores and one sent to traffic or receiving
for use in expediting the order.

Balance-of-stores form: This is the most important inventoryFinancial control

record. Also called the perpetual inventoryFinancial card or a stock record card,
the balance of stores from is maintained for each inventoryFinancial account. It
usually contains information on materials specification and description, quantity
in hand, ordered, and in process and its total value; economic order quantity;
unit price; usage rate; recorder point; processment interval and the minimum
and maximum inventoryFinancial level. If properly maintained, the balance of
stores forms permits easy checking of stock levels at all times, regardless of
where the material is physically stored.

Material requisition form: This form authorises the storekeeper to issue a

specified quantity of a certain item for use in manufacture of specific order. The
material requisitions from may be initiated by production control or a foreman.
One copy of the form is forwarded to inventoryFinancial control for entry on the
balance of stores card and one copy is sent to accounting as the basis for charges
against the specified production order or the using department. Another copy of
the for usually accompanies the material as identification and to indicate the
destination of the stock.

Biscuits manufacturing requires a process layout and in this process lay out
batching system is adopted. Standard raw material in a batch is as follows.

BATCHING SYSTEM
UNIT

MOISTURE
%

INPUT QUANTITY

WHEAT FLOUR

Kg.

12.5

100

SUGAR (SYRUP)

Kg.

0.1

42.13

VANASPATI

Kg.

NIL

21.8

SMP

Kg.

3.5

0.9

AMMONIA

Kg.

100

0.35

CITRIC ACID

Kg.

7.5

0.008

INGREDIENTS

SODA

Kg.

50

0.28

SALT

Kg.

1.1

SMBS

Kg.

30

0.02

SOYA LECTHINE

Kg.

NIL

0.2

PARLE FLAVOUR MIX

Lt.

35

0.2

TOTAL

166.988

In Parle Biscuits are manufactured according to batching system. One batch

takes around two to three minutes to complete. One batch contains raw materials
& chemicals according to the quantity shown in above table.

STANDARD OF PARLE BISCUIT LIMITED, PANTNAGAR

STANDARD OF PARLE-G PER BATCH
INGREDIENTS

Wheat Flour
Sugar (Including Syrup
on Dry basis)
Vanaspati
SMP
Ammonia Bi Carbonate

UNIT

QUANTITY

MOISTURE

OUTPUT

BATCH

Kg.

100
42.13

12.5
0.1

(Dry
Wt.)
87.5
42.09

Kg.
Kg.
Kg.

21.8
0.9
0.35

3.5
100

21.8
0.87
0

Citric Acid
Soda
Salt
SMBS
Soya Lecthine
Parle Flavour Mix

Kg.
Kg.
Kg.
Kg.
Kg.
Lt.

0.008
0.28
1.1
0.02
0.15
0.2

7.5
50
3
30
35

0.01
0.14
1.07
0.01
0.15
0.13

Like raw material there is also a standard of Packing material which is shown as
below: -

STANDARD FOR PACKING MATERIAL FOR

ONE BOX OF
PARLE-G (144 Pkts. x 100 GM.)
Description
Wrapper
C-Boxes
Poly Bags
BOPP Tape
Complains Coupons

Units
Ks.
Nos.
Nos.
Nos.
Nos.

Qty/Boxes
0.166
1
6
0.002
6

STANDARD FOR MANUFACTURING ONE C-BOX

C- Box manufacturing is an in-house procedure in Parle Pantnagar and for this
there is a separate plant for manufacturing of C- Boxes. Standard Qty. for
producing a C-Box is as below: S. NO.
1
2
3
4

ITEM NAME
Kraft Paper
Black Ink
Starch Powder
G.I. Stitching Wire

UNIT
Kg.
Kg.
Kg.
Kg.

STD. PER BOX

0.420
0.001
0.014
0.002

CONSUMPTION OF RAW MATERIAL & CHEMICALS ON ONE

MONTH PRODUCTION
Daily Consumption data of all kinds of Raw & Packing material was taken on an
average basis and average consumption of raw material & chemicals was as
below:CONSUMPTION OF RAM MATERIAL AT PBPL, PANTNAGAR
(ONE-MONTH PRODUCTION)

SL. NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

ITEM NAME
Maida
Sugar
Vanaspati
S.M.P.
Ammonium (A.B.C.)
Citric Acid
Soda Bi Carbonate
Salt
SMBS
Soya Lacethine
PFM

UNIT
Kg.
Kg.
Kg.
Kg.
Kg.
Kg.
Kg.
Kg.
Kg.
Kg.
Lt.

DAILY REQ.
QTY.
3830000
1615000
837000
34000
13000
234
10660
42000
390
5200
7500

C-BOXES RAW MATERIAL CONSUMPTION

Like raw material & chemicals ,Packing material issuance data was also taken
from stores department and one week consumption of packing material is as
below:DAILY REQUIRED QTY. OF PACKING MATERIAL
PBPL, PANTNAGAR ON MONTHLY PRODUCTION
SL. NO.
ITEM NAME
UNIT
DAILY REQ.
QTY.

1.
2.
3.
4.
5.

C. Boxes
Wrapper
Ploy Bags
Coupons
BOPP Tape

Nos.
Kg.
Kg.
Nos.
Roll

416000
70000
16000
2500000
936

POWER & FUEL CONSUMPTION

Propane gas is used as fuel (to heat oven) & H.S.D electricity both are used as
power at Parle Pantnagar .Propane & H.S.D. consumption on an average basis is
as below:
DAILY REQUIRED QTY. OF POWER & FUEL AT
PBPL, PANTNAGAR ON MONTHLY PRODUCTION
SL. NO.
ITEM NAME
UNIT
DAILY REQ.
QTY.
Propane
Kg.
156000
1.
H.S.D.
Lt.
72800
2.

DAILY-REQUIRED QTY. FOR MANUFACTURING ONE-MONTH CBOXES

DAILY-REQUIRED QTY. OF C. BOXES RAW MATERIAL

SL. NO.
1.
2.
3.
4.

DAILY PRODUCTION
ITEM NAME
UNIT
Stitching Wire
Kraft Paper
Powder Gum
Black Ink

Kg.
Kg.
Kg.
Kg.

DAILY REQ.
QTY.
910
169000
7000
500

MINIMUM & MAXIMUM STOCK LEVEL OF R.M.

AVERAGE & MINI-MAX LEVEL OF RAW MATERIAL AT PBPL, PANTNAGAR
ON DAILY PRODUCTION

SI.NO.

ITEM NAME

UNIT

DAILY
AVERAGE

MINIMU
M LEVEL

MAXIMUM
LEVEL

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Maida
Sugar
Vanaspati
S.M.P.
Ammonium (A.B.C.)
Citric Acid
Soda Bi Carbonate
Salt
SMBS
Soya Lacthine
PFM

Kg.
Kg.
Kg.
Kg.
Kg.
Kg.
Kg.
Kg.
Kg
Kg.
Lt.

QTY.
300000
450000
90000
12000
3500
200
2500
8000
200
2000
2000

200000
300000
60000
9000
2000
50
2000
2000
150
1000
500

400000
500000
120000
15000
5000
350
3000
6000
250
3000
3500

MINIMUM & MAXIMUM STOCK LEVEL OF PACKING MATERIAL

AVERAGE & MINI-MAX LEVEL OF PACKING MATERIAL AT
PBPL, PANTNAGAR ON DAILY PRODUCTION

SI.NO.

1.
2.
3.
4.
5.

ITEM NAME

C. Boxes
Wrapper
Poly Bags
Coupons
BOPP Tape

UNIT

Nos.
Kg.
Kg.
Nos.
Roll

DAILY
AVERAGE
QTY.
52000
6000
4500
1000000
500

MINIMUM
LEVEL
32000
2000
1500
500000
100

MAXIMUM
LEVEL
72000
4000
3500
1500000
400

MINIMUM & MAXIMUM STOCK LEVEL OF POWER & FUEL

AVERAGE & MINI-MAX LEVEL OF POWER &FUEL AT
PBPL, PANTNAGAR ON DAILY PRODUCTION
SI.NO.
ITEM NAME
UNIT
DAILY
MINIMUM
MAXIMUM
AVERAGE
LEVEL
LEVEL
QTY.
Propane
Kg.
20000
10000
30000
1.
H.S.D.
Lt.
15000
8000
22000
2.

MINIMUM & MAXIMUM STOCK LEVEL OF C-BOX RAW MATERIAL

AVERAGE & MINI-MAX LEVEL OF C. BOXES RAW MATERIAL AT

PBPL, PANTNAGAR ON DAILY PRODUCTION OF C. BOXES
SI.NO.
ITEM NAME
UNIT
DAILY
MINIMUM
MAXIMUM
AVERAGE
LEVEL
LEVEL
QTY.
Stitching Wire
Kg.
500
200
800
1.
Kraft Paper
Kg.
45000
15000
75000
2.
Powder Gum
Kg.
1200
600
1800
3.
Black Ink
Kg.
250
50
450
4.

PRODUCTION LEVEL OF BISCUITS

AT PBPL, PANTNAGAR
(FOR THE YEAR 2005-06, 2006-07 & 2007-08)

PRODUCTION IN MT
MONTH

2007-08

2006-07

2005-06

PG

CREAM

APR

4,000

4,200

MAY

4,300

4,300

35

JUN

5,000

4,800

600

JULY

5,000

5,500

1,500

AUG

4,800

40

5,200

2,000

SEP

5,300

2,400

OCT.

4,300

2,500

NOV

4,900

2,300

DEC

4,700

2,800

JAN

4,900

2,500

FEB

5,000

2,600

MAR

4,500

2,800

57,600

22,035

23,100

40.0

CONCLUSION

InventoryFinancial is as old as man. The primitive mans inventoryFinancial

consisted of a few tools; as a shepherd, man had to tend his flocks and herds;
later, he has his granaries and ware houses; today with industrialization, his
inventories cover a very wide range. As man has progressed and his needs and
activities multiplied, the range of inventoryFinancial has become larger and more
diversified.

Now a days, Inventories are held to facilitate product display and service to
customers, batching in production in order to take advantage of longer
production runs and provide flexibility in production scheduling.

Hence, to achieve the desire goal of an organization more efficiently and

effectively, organization has to make proper inventoryFinancial levels with the
help of InventoryFinancial Management and Control.

RECOMMENDATION

InventoryFinancial management and control refers to the planning for

optimum quantities of materials at all stages in the production cycle and

evolving techniques which would ensure the availability of planned

inventories

For proper determination of inventoryFinancial, the trend of sales must be

watched closely and inventories adjusted in advance of the change in rate
of production as determined by actual sales.

Proper inventoryFinancial system must provide follows up to unable the

answering of such questions: Has the vendor received the order? Has it
been shipped? Are the items correct? Are the procedures established for reordering or returning undesirable merchandise?

BIBLIOGRAPHY

Education and knowledge within industry.

BOOKS: -

o Financial

Management, Gupta

K. Shashi, 2000, Kalyani

Publishers.
o Financial Management, Kishore M. Ravi, 2005, Taxmann Allied
Services Pvt. Ltd.
o Production and Operation Management, Aswathapa K. 2006,
Himalaya Publishers.
o Production and Operation Management, Nair N. G., 2002, Tata
Mcgraw-Hill Publishing Company Ltd..
o Research Methodology, Kothari C. R., 2003, Wishwa Prakashan

SEARCH ENGINE: o www.parle-g.com

o www.google.com
o www.yahoo.com
o www. wikepedia.com

ANNEXURE
QUESTIONNAIRE

For employer
Name and address of the company:-

Name and Telephone no. and destination of the person to be contacted for clarification:-

Ques 1:- what is the sector of this industry?

1) Private Sector
2) Public Sector
3) Joint Sector

Ques 2:- What is scale of this industry?

1) Large Scale
2) Medium Scale
3) Small Scale

Ques 4:- What is average age of employees in your industry?

1) 20 35 Years
2) 35 50 Years
3) 50 65 Years

Ques 5:- What is an average service of employees in this industry?

1) 5 10 Years

2.10 15 Years
3) 15- 20 Years

Ques6:- What is the number of manpower in your organization?

5) Staff
6) Company roll
7) Contract based
8) Casual based

Ques10: - What are the methods adopted to improve productivity?

5) Productivity improvement
6) Quality improvement
7) TPM
8) Other methods
Ques11:- Do you have medical reimbursement scheme?
1) Yes
2) No

Ques12:- Are you providing canteen facilities?

1) Yes
2) No
Ques14:- What is the age of retirement of employees of this industry?
1) 56- 58 Years
2) 5860 Years

3) 60- 62 Years

Ques16:- Do you have career plan for employees?

1) Yes
2) No
Ques17:- Do you have services gifts scheme?
1) Yes
2) No

Ques19:- Do you have your own transport facilities?

1) Yes
2) No

Ques20:- How much amount is deducted from transport Facilities?

1) 200-400 Rs.
2) 400-600 Rs.
3) 600-800 Rs.
4) More than 800 Rs.
Ques21:- How much amount is the conveyance allowance given to employees?
1) 200-400 Rs.
2) 400-600 Rs.
3) 600-800 Rs.
4) More than 800 Rs.
Ques22:- Do you have house rent allowance?
1) Yes
2) No

Ques23:- How much amount is deducted from house rent allowance?

1) 200-500 Rs.
2) 500-800 Rs.
3) 800-1100 Rs.
4) More than 1100 Rs.

Ques24:- What is the timing of shift for working employees?

1) 6 AM - 2 PM
2) 2 PM 10 PM
3) 10 PM 6 AM
4) 8 AM 5 PM
5) All of these

Ques25:- Do you have overtime facilities?

1) Yes
2) No

Ques26:- Do you have childrens education allowance?

1) Yes
2) No
Ques27:- Are you providing Bonus?
1) Yes
2) No

Ques28:- What is the method of calculation of Bonus?

1) As per HR policy
2) As per Govt. norms
3) Both of these

Ques29:- Do you have incentive schemes?

1) Yes
2) No

Ques30:- Do you have any Awards?

1)

incentive

2) Attendance Award
3) Star of the month
4) Quality control Award
5) All of these

For Employees

Ques1:- What is your age?

1) 20 35 Years
2) 35- 50 Years
3) 50 65 Years

Ques2:- Are you agree with your training programs?

1) Yes
2) No

Ques3:- Are you satisfy your canteen facilities?

1) Yes
2) No
Ques4:- Do you agree with your medical facilities?
1) Yes
2) No
Ques5:- Are you satisfied your health scheme policy?
1) Yes
2) No
Ques6:- Are you satisfied your welfare programs?
1) Yes
2) No

Ques:- Are you having house rent allowance?

1) Yes
2) No
Ques:- Are you satisfied your Grievance handing procedure?
1) Yes
2) No
Ques:-Are you agree your promotion policy?
1) Yes
2) No