About the Industry :-

Scope of the Sector:

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterize the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue.

GrowthProspects
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their

position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.

Indian Competitiveness and Comparison with the World MarketsThe following factors make India a competitive player in FMCG sector:-

. Availability of raw materialsBecause of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits and vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.

Labor cost comparison-

Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.

. Presence across value chainIndian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.

FMCG companies in India:Recently, the FMCG industry in India is undergoing sea changes with both domestic and international brands trying to attract more number of consumers. FMCG companies in India have always enjoyed a vast potential market because of the large population of the country. The improved economic situation of both the rural and urban consumers has helped FMCG companies to further expand their market to the hinterlands of the country. The fast moving consumer goods have lower shelf life. These are normally goods that are frequently bought and used by households. The profit on each unit of an FMCG product is less but they enjoy higher volume of sales. As a result, the profit of an FMCG company is always measured in terms of the number of units sold by it.The Indian FMCG companies enjoy a diverse industrial base and offer a variety of products to consumers, namely toiletries, personal care products, soaps, detergents, oral hygiene, packaged foods, beverages, grooming products, healthcare products, plastic products, bulbs, batteries, glassware etc. The FMCG industry is the fourth largest sector in India, creating employment for more than 3 million people in the country. It also enjoys high penetration in the rural areas of the country. The Indian FMCG market offers a level playing ground for both domestic and international players. When the all India brands and international brands enjoy higher acceptance in the urban market, the rural market is often dominated by the regional and local producers.

About the company:PRODUCT LIST: Potato salted wafers Masala potato wafers Tomato masti Chat chaska Cream onion Masala dhoom Banana mari wafers Banana masala wafers Farali chevdo Ratlami sev Sing bhujia Sing bhujia nimbu Mung dal Chana dal Masala sing Thika mitha mix Khatta mitha mix Ghatiya Chataka pataka Masala masti Tangi tomato Wheelos Masala khakhra Methi khakhra Plain khakhra Jeera khakhra Alu sev Vatana

History:The journey of Balaji Group started in year 1976 by the member of Virani family for supplying wafers and namkeens to local brands to the patrons of Astron Cinema, Rajkot. Due to the shore supply of that product they decided to make their own product line in year 1982.

By the overwhelming retail success they inspired to set a semi automatic plant. Instead of preparing wafers by the traditional frying method this semi automatic plant boosted the quality, taste and more sales also. The fame of taste reached to the whole Gujarat hence it was time to takeover the whole Gujarat so that biggest automatic plant of Gujarat came in to the picture. Quenching the demand of Gujarat, Maharashtra and Rajasthan region Balaji Group is now looking forward to march over India. Network:The wheel of network is devised under the ideal distribution channel network. That ensures to supply fresh product in any corner of Gujarat within 24 hours. You can have Balaji snacks in every 100 meters of are in Gujarat. At Balaji is not just distribution but it is an euphemistic effort of team work. Strategy This simple mantra rocked and changed the definition of chip world. Winning the hearts by quality and great taste and distributing sufficient dealer margin is a winning strategy of Balaji Group. Its 'Value for money' strategy that enables even a kid to buy fresh & healthy food in small prices. Indeed in a neck to neck competition one must implement new ideas and balaji group has developed the think tank i.e continuously update strategy in the right direction. Think win-win & Stay ahead. 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 namkeen 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.

The Plant:The existing plant is the largest in capacity and with all the facilities.In the year 2003 Balaji group took pride to introduce the biggest fully automated potato processing machinery plant in India which can process 4500 kgs of potato and can make 1200 kgs of chips per hour.The namkeen and other product line has separate departments ans 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

Major players :-

List of Top FMCG Companies in India

Hidusthan Unilever Ltd.: It is a leading name in India in producing personal and healthcare products. The company was awarded the Golden Super Star Trading Company status from the Government of India.

Dabur India Ltd.: Dabur India produces a variety of healthcare products and enjoys a turnover of approximately INR 1899 crores.

Indian Tobacco Company: ITC is in existence since 1910 and has diversified its business in producing a variety of consumer goods. The company is known for ensuring the highest level of employee satisfaction.

Marico Industries: Marico is known for producing home care and personal care products in India. The company also enjoys a wide consumer base in different SAARC, Middle-Eastern states, Bangladesh, UAE, USA, Egypt etc.

Nestle India: It started its journey in 1912 as an Anglo-Swiss collaboration for condensed milk export. It produces a variety of dairy products of international

standard.

Amul: The first cooperative milk marketing initiative in India. Currently, it is the market leader in producing milk, butter, cheese, ghee, chocolates, ice cream and other dairy items.

Cadbury India: Cadbury is synonymous with chocolates in India. But apart from chocolates, the company also manufactures other food and health drink products like Bournvita.

Procter & Gamble Hygiene and Health Care: The product range of P&G comprises personal care products, pet foods and variety of domestic cleaners.

Britannia Industries: Britannia is known for manufacturing varieties of biscuits, cookies and also milk, cheese, butter, ghee etc and enjoys all India market.

GlaxoSmithKline: It is one of the leading medicine and vaccine manufacturers in the country. It is currently employing around 3500 employees.

Colgate Palmolive: It is a trusted name in India for personal care, home care, pet care and oral care products. Colgate is named as Indias Most Trusted Brand in

2011 in the survey conducted by Nielson.

THE COMPETITORS OF BALAJI:1.) Kurkure 2.) Lays 3.) Lehar 4.) Uncle chips 5.) Atop 6.) Oreva 7.) Shriji 8.) Suraj 9.) Krutika

Expectations from the visit:1.) My expectations from the visit are to get information about the marketing and distribution process they follow. 2.) To learn how whole plant is managed. 3.) Want to interact with the top managers to get some idea about several aspects of management. 4.) Inculcate knowledge to how does company works as a whole. 5.) Learning managerial tips that would be helpful in future. 6.) To know important strategies that proved to be the turning point for the industry.