itc-impact of itc on fmcg sector

8/8/2019 Itc-impact of Itc on Fmcg Sector

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ASUMMER TRAINING PROJECT

ON

IMPACT OF ITCON

FMCG SECTOR

SUBMITTED IN FULFILLMENT OFTHE REQUIREMENT FOR THE AWARD OF

MASTER OF BUSINESSADMINISTRATION (MBA)

SUBMITTED TOMR. TARIQUE SIDDHIQUI

H.O.D.GIMT, Gr. Noida

SUBMITTED BYVIRENDRA PANWAR

MBA (3RD SEM)ROLL NO. 0709470116


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GALGOTIAS INSTITUTE OF MANAGEMENT & TECHNOLOGY

1, KNOWLEDGE PARK, PHASE-II, GREATER NOIDA


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TABLE OF CONTENTS

Acknowledgement

Preface

Executive Summary of the project

Introduction

Company Profile

Research Methodology

Objective

Scope

Sample size

Data Sources

Finding and Analysis

Conclusion

Recommendations

ANNEXURE

Bibliography

Acknowledgement


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I would like to express my sincere gratitude towards Galgotias

Institute of Management & Technology, Greater Noida for

providing me the opportunity to work and learn through this end-term

project.

I am extremely grateful to my esteemed project guide, Mr.

Tarique Siddhiqui, H.O.D., GIMT, Greater Noida, for giving me an

opportunity to work with him and his indispensable help and guidance

throughout this project and for inspiring me to strive to achieve the

best in difficult situations.

While doing the project I visited many companies in Delhi regionand met many senior personnel. I would like to extend my special

thanks to all of them for sparing their time to patiently answer the

questions and giving their views.

VIRENDRA PANWAR

MBA (3RD SEM)

Preface


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This project had been undertaken for Impact of ITC on FMCG

Sector.

In order to gather the most appropriate and accurate data survey was

conducted in various location and markets in Saharanpur. The data

was assimilated with the help of a questionnaire aimed and designed

to extract the most correct and conclusive information.

The consumers were requested to fill the questionnaire and were also

asked various other relevant questions revealing detailed information

apart from that in the questionnaire.

The survey was conducted successfully and its findings have been

studied, analyzed and have led to a conclusion, included in the report,

which could prove to be fruitful for the project.


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OBJECTIVES

The highly significant function not only because inventories constitute

substantial portion of total current assets of a firm but also because it has to

satisfy the following objectives:

(i) To minimize the financial investment in inventories. The main

objective of a system of inventory control in manufacturing organization is

to minimize the capital blocked in the inventories. Because the capital

required carrying inventories costs money and holding assets in the form of

inventories results in decreased liquidity.

(ii) To ensure that the value of materials consumed is minimum. For

ensuring this objective, there should be proper control over materials from

the time orders are placed with suppliers till the materials have been

effectively utilized in production. Thus, materials must be properly

safeguarded and correctly accounted for. Efficient purchasing, storage,

consumption and accounting for materials are an important objective of

inventory control.

(iii) To maintain timely records of inventories of all items and to

maintain the stock within the desired limits.

(iv) To provide scientific base for short-term and long-range planning

of inventory requirements.

(v) To ensure timely action for replenishment.

(vi) To protect the bank of inventories from pilferage, theft, waste,

loss, damage and unauthorized use.


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VISION & MISSION

Innovating Enjoyment With That Extra Flavour.

Enduring value. Enhancing appeal. Enriching life. By adding that extra

flavour. We are constantly innovating to offer products & services, which

are distinctive, differentiating and not the ordinary.

To sustain global leadership in the Chewing Tobacco Business.

To become a household name for quality products in Foods &

Beverages.

To set new benchmarks in the sectors we operate.


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INTRODUCTION

"ITC" to many small business owners is one of the more visible and tangible

aspects of doing business. Raw materials, goods in process and finished

goods all represent various forms of inventory. Each type represents money

tied up until the inventory leaves the company as purchased products.

Likewise, merchandise stocks in a retail store contribute to profits only when

their sale puts money into the cash register.

In a literal sense, inventory refers to stocks of anything necessary to dobusiness. These stocks represent a large portion of the business investment

and must be well managed in order to maximize profits. In fact, many small

businesses cannot absorb the types of losses arising from poor inventory

management. Unless inventories are controlled, they are unreliable,

inefficient and costly.


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EXECUTIVE SUMMARY

The title of the project is Study Of Systems Practices & Structure Of Companies

For Snack Food with Relevance to Convenience Channel & compare it with ITC.

This project seeks to understand the systems practices & structures of

companies for snack food with relevance to convenience channel & compare it

with ITC. . The focus of this research is to find out how other companies like lays

and haldiram its major competitors what practices are they following, what is their

distribution network like how many variants do they have in the snack food

segment etc. I gathered information in areas like how many number of

distributors are there in specific regions for a particular company, their delivery

process, size of go down, number of mechanized and Non-mechanized units,

their norms, schemes billing methods, order structure, cash and credit facility etc.

The research adopts a qualitative and quantitative methodology by conducting

surveys with distributors and salesman of snack food. The main focus of the

research was onBingo, as, it has been launched recently. Another factor was to

analyze how ITC would regain its bench mark impression and since ITC has

diversified itself in various sectors, how to overcome the problem that salesman

and the distributors are facing. By conducting this survey it helped me to

understand how ITC differs from its competitors in its sales practices.


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The location of research is Noida, Faridabad and Ghaziabad. And in these

locations I covered the distributors of Lays, Haldiram and ITC. I also had a

meeting with the sales officer of Lays at Noida and found out about its working,

schemes and other practices that it follows.

During the research I discovered that the total wafer market of India comprises of

20,000 crores. There is a huge market potential in this sector.

The findings state that how each distributor differs from each other in terms of

number of salesman that they have, total number of outlets that they cover, size

of go down, number of SKUs that each company has in the snack food segment,

the margin that the companies are giving to their distributors and retailers, the

average number of outlets covered by each salesman in a day, and also how do

they differentiate between town and village working.

Finally, this report concludes by making a summary of the findings. Some

recommendations have also been made for better promotions and effective sales

of the product.

INTRODUCTION

The idea behind this project was to do a extensive study of systems, practices,

and structures of select companies for snack food, with relevance to convenience


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channel and compare it with ITC. The scope of the project involved the following

areas to be covered extensively-

Ordering, delivering and cash collection models- people& processes. under this

I had to cover the distributors profile, that is their location and number. What are

the loctions where the distributors are located and hoe many of them are there in

number for each region and each company.secondly I had to understand the

infrastructure that the distributors are using like mechanized and non mechanized

units which includes three wheelers, rickshaw, mopeds, cycles etc.Then I had to

know about the margins that the various companies are giving to their distributor

and retailers.Then I had to study about the coverage plan, which involves the

total number of outlets that the distributors cover in their regions for respective

companies, and what is their mode of transportation, through which they cover

these outlets. Then I ha d to find out the frequency of service that the salesmen

of respective compnies are undergoing in respective to the outlets that they

cover, that is how many times in a week is one salesman covering a particular

outlet.I had to also find out about the no of sku;s and varients that each of these

companies have.Then I had to know about the norms and delivary process of

various companies, what norms do the distributors have to follow set by the

company, and what is their delivary process. Then I had to find out about the

cash and credit collection method that the distributors are giving to the retailers.I

had to also find out about the billing methods and the various sehemes that the

companies are giving to the consumers.Apart from this I had to also find out

about the stock rotation , and damage stock replacement policies of the

companies, and also about maintaining bingo rack hygine.


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THE ITC PROFILE

ITC is one of India's foremost private sector companies with a

marketCapitalisation of nearly US$ 15 billion and a turnover of over US $ 4.75

billion.

Rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's

Most Reputable Companies by Forbes magazine,among India's Most Respected

Companies by BusinessWorld and among India's Most Valuable Companies by

Business Today, ITC ranks third in pre-tax profit among India's private sector

corporations.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty

Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,

Information Technology, Branded Apparel, Greeting Cards, Safety Matches and

other FMCG products. While ITC is an outstanding market leader in its traditional

businesses of Cigarettes, Hotels, Paperboards, Packaging andAgri-Exports, it is

rapidly gaining market share even in its nascent businesses of Packaged Foods

& Confectionery, Branded Apparel and Greeting Cards.

As one of India's most valuable and respected corporations, ITC is widely

perceived to bededicatedly nation-oriented. Chairman Y C Deveshwar calls this

source of inspiration "a commitment beyond the market". In his own words: "ITC

believes that its aspiration to create enduring value for the nation provides the

motive force to sustain growing shareholder value. ITCpractises this philosophy


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by not only driving each of its businesses towards international competitiveness

but by also consciously contributing to enhancing the competitiveness of the

larger value chain of which it is a part

ITC's diversified status originates from its corporate strategy aimed at creating

multiple drivers of growth anchored on its time-tested core competencies:

unmatched distribution reach, superior brand-building capabilities, effective

supply chain management and acknowledged service skills in hoteliering. Over

time, the strategic forays into new businesses are expected to garner a

significant share of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products.

ITC is one of the country's biggest foreign exchange earners (US $ 2.8 billion in

the last decade). The Company's 'e-Choupal' initiative is enabling Indian

agriculture significantly enhance its competitiveness by empowering Indian

farmers through the power of the Internet. This transformational strategy, which

has already become the subject matter of a case study at Harvard Business

School, is expected to progressively create for ITC a huge rural distribution

infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India

Limited, is aggressively pursuing emerging opportunities in providing end-to-end

IT solutions, including e-enabled services and business process outsourcing.


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ITC's production facilities and hotels have won numerous national and

international awards for quality, productivity, safety and environment

management systems. ITC was the first company in India to voluntarily seek a

corporate governance rating.

ITC employs over 21,000 people at more than 60 locations across India. The

Company continuously endeavors to enhance its wealth generating capabilities

in a globalizing environment to consistently reward more than

4,88,000 shareholders, fulfill the aspirations of its stakeholders and meet societal

expectations. This over-arching vision of the company is expressively captured in

its corporate positioning statement: "Enduring Value. For the nation and for the

shareholder.


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HISTORY AND EVOLUTION

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco

Company of India Limited'. Its beginnings were humble. A leased office on Radha

Bazar Lane, Kolkata, was the centre of the Company's existence. The Company

celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land

situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the

sum of Rs 310,000. This decision of the Company was historic in more ways than

one. It was to mark the beginning of a long and eventful journey into India's

future. The Company's headquarter building, 'Virginia House', which came up on

that plot of land two years later, would go on to become one of Kolkata's most

venerated landmarks. The Company's ownership progressively Indianised, and

the name of the Company was changed to I.T.C. Limited in 1974.

In recognition of the Company's multi-business portfolio encompassing a wide

range of businesses - Cigarettes & Tobacco, Hotels, Information Technology,

Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle

Retailing and Greeting Gifting & Stationery - the full stops in the Company's

name were removed effective September 18, 2001. The Company now stands

rechristened 'ITC Limited'.

Though the first six decades of the Company's existence were primarily

devoted to the growth and consolidation of the Cigarettes and Leaf

Tobacco businesses, the Seventies witnessed the beginnings of a

corporate transformation that would usher in momentous changes in the

life of the Company.
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paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd

(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to

improve customer service with reduced lead time and a wider product

range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and

British joint venture. Since inception, its shares have been held by ITC,

British American Tobacco and various independent shareholders in Nepal.

In August 2002, Surya Tobacco became a subsidiary of ITC Limited and

its name was changed to Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper

manufacturing company and a major supplier of tissue paper to the

cigarette industry. The merged entity was named the Tribeni Tissues

Division (TTD). To harness strategic and operational synergies, TTD was

merged with the Bhadrachalam Paperboards Division to form the

Paperboards & SpecialtyPapers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the

International Business Division (IBD) for export of agri-commodities.

The Division is today one of India's largest exporters. ITC's unique and

now widely acknowledged e-Choupal initiative began in 2000 with soya

farmers in Madhya Pradesh. Now it extends to 9 states covering over 3.5

million farmers. ITC's first rural mall, christened 'Choupal Saagar' was

inaugurated in August 2004 at Sehore. The year 2006 witnessed the

ramping up of the Company's rural retailing network with 17 'Choupal

Saagars' being operational in three states of Madhya Pradesh,

Maharashtra and Uttar Pradesh.


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In 2000, ITC's Packaging & Printing business launched a line of high

quality greeting cards under the brand name 'Expressions'. In 2002, the

productrange was enlarged with the introduction of Gift wrappers,

Autograph books and Slam books. In the same year, ITC also launched

'Expressions Matrubhasha', a vernacular range of greeting cards in eight

languages and 'Expressions Paperkraft', a range of premium stationery

products.

In 2003, the company rolled out 'Classmate', a range of notebooks in the

school stationery segment.ITC also entered the Lifestyle Retailing

business with the Wills Sport range of international quality relaxed wear

for men and women in 2000. The Wills Lifestyle chain of exclusive stores

later expanded its range to include Wills Classic formal wear (2002) and

Wills Clublife evening wear (2003). ITC also initiated a foray into the

popular segment with its men's wear brand, John Players, in 2002. In

December 2005, ITC introduced Essenza Di Wills, an exclusive line of

prestige fragrance products, to select 'Wills Lifestyle' stores.

In 2006, Wills Lifestyle became title partner of the country's most premier

fashion event - Wills Lifestyle India Fashion Week - that has gained

recognition from buyers and retailers as the single largest B-2-B platform

for the Fashion Design industry. To mark the occasion, ITC launched a

special 'Celebration Series', taking the event forward to consumers.

In 2000, ITC spun off its information technology business into a wholly

owned subsidiary, ITC Infotech India Limited, to more aggressively

pursue emerging opportunities in this area. In a short span of 5 years, ITC

Infotech has already crossed over US$ 60 million in revenues. It also has


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a joint venture with ClientLogic, a top five global Business Process

Outsourcing(BPO) provider.

ITC's foray into the Foods business is an outstanding example of

successfullyblending multiple internal competencies to create a new driver

of business growth. It began in August 2001 with the introduction of

'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC

entered the confectionery and staples segments with the launch of the

brands Mint-O and Candyman confectionery and Aashirvaad atta(wheat

flour). 2003 witnessed the introduction of Sunfeast as the Company

entered the biscuits segment. ITC's entered the fast growing branded

snacks category with Bingo! in 2007.

In just six years, theFoods business has grown to a significant size with

over 150 differentiated products under six distinctive brands, with an

enviable distribution reach, a rapidly growing market share and a solid

market standing.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness

of the entire value chain found yet another expression in the Safety

Matches initiative. ITC now markets popular safety matches brands like

iKno, Mangaldeep, VaxLit, Delite and Aim.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003

marked the manifestation of its partnership with the cottage sector. ITC's

popular agarbattis brands include Spriha and Mangaldeep across a

range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,

Sambrani and Nagchampa.


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THE ITC WAY

ITC is a board-managed professional company, committed to creating enduring

value for the shareholder and for the nation. It has a rich organisational culture

rooted in its core values of respect for people and belief in empowerment. Its

philosophy of all-round value creation is backed by strong corporate governance

policies and systems.

ITCs corporate strategies are:

Create multiple drivers of growth by developing a portfolio of world class

businesses that best matches organisational capability with opportunities

indomestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper,

Paperboards & Packaging, Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the

criteria of Market Standing, Profitability and Internal Vitality.

Ensure that each of its businesses is world class and internationally

competitive.

Enhance the competitive power of the portfolio through synergies derived

by blending the diverse skills and capabilities residing in ITC are various

businesses.

Create distributed leadership within the organisation by nurturing talented

and focused top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes.


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ITC VISION

Sustain itcs position as one of Indias most valuable corporation through world

class performance, creating growing values for the Indian economy and the

companies Stake holders.


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ITC MISSION

To enhance the wealth generating capabilities of the enterprise in a globalizing

environment, delivering superior and sustainable stake holder value.


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BRANDS OF ITC

BABA Flavoured Chewing Tobacco

Chewing tobacco is an age old heritage. The ritual of relishing the taste oftobacco has been a practice in Asian and the Far-Eastern civilizations. Thetraditional way of preparing the chew is very cumbersome and unhygienic.

The DS Group has been a pioneer in introducing hygienically processed andpacked chewing tobacco. Assured for international quality, refreshing tasteand fragrance.

BABA, the nations first saffron flavoured chewing tobacco is the flagshipbrand of the group that has set global benchmarks for quality, since 1929.Popular internationally for its refined taste, spiced with aroma, saffron andsilver flakes, BABA boasts of unwavering customer loyalty across theworld.

Unique flavours of BABA have been a closely guarded secret forgenerations. The choicest and the finest natural ingredients and global

packaging standards, make BABA the international favourite. Thesestandards have been the corner-stone of all our offerings. Be it flavoured

betelnuts or natural mouth-freshener like silver coated cardamoms, allproducts that come from BABA are truly world-class.


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Catch Clear Flavoured Drink

Another innovation, which shook the market and gave a refreshing, fruitybreak!

Yet another nations first, Catch Clear Flavoured Spring Water ! Made fromfinest blend of flavours of natural fruits and sparkling spring water.Tantalizing with six delightful flavours Lime n Lemon, Black Currant,Peach, Mango, Green Apple and Strawberry, with more exciting flavours inthe pipeline it also appeals to the health-conscious by being a totallycaffeine-free, calorie-free & sugar-free drink!


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Catch Club Soda

A perfect blend of nature's pristine purity and bubbling effervescence, CatchClub Soda in its attractive packaging, promises to fizz up your mood in aninstant.

Made from hygienically processed Catch Natural Spring Water and bottledat the in-house state-of-the-art plant, that ensures retention of its discerningtaste and fizz, Catch Club Soda tastes best till the very last drop.


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Si lver & Gold Foi l

The DS Group has been a pioneer in bringing the best of technologies andworld-class solutions to India. Silver Foil division of DS joined hands withWallner, Germany to abolish the primitive and cruel method of manually

beating silver pieces between intestines of animals. The collaborationintroduced the process of electronically beating silver between a special

paper, in a hygienically controlled dust free atmosphere.

Apart from Silver Foils, DS has started manufacturing Gold Foils. Thebeauty of these foils lie in their purity. The Gold foils are made from 24Carat Gold. The process of making Gold Foils is almost similar to Silver

Foils. DS is the only producer of 100% pure and vegetarian Silver & GoldFoils for the first time in India and our plant is the largest in the world.


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CATCH JALJEERA

Plugging the need gap with a natural refreshing drink, Catch

Jaljeera offers a drink which is natural with no artificialflavours and gives a freshness with a hint of salt and spicewhich tantalizes the taste buds and cools you from within. The

product is being offered in one time use sachets that require tobe emptied into a glass of water, with a stir and thedrink is ready.


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Catch Natural Spring Water

Nearly twenty-six kilometers from the town of Manali, cocooned in theHimalayan valley of the Gods, at a height of around 5000 feet, lies anebullient spring bubbling with pristine pure water. This purity is popular asCatch Natural Spring Water, bottled at source, using the state-of-the-art

packaging technology.

Catch Natural Spring Water is the only Indian bottled water brand, whichhas been tested and certified to comply with Food & Drug Administration(US) Code of Federal Regulations by NSF International, the world's leadingindependent organization dedicated to public health, safety and protection ofthe environment.

Bringing this pristine purity of nature to your homes is a path-breakingbottling technology, set up in association with world leaders Sidel, France.Even though the state-of-the-art plant has a packaging capacity of around100 bottles per minute the demand still far exceeds the supply.Just yet another instance of how DS fulfils the latent market needs through

bringing in path-breaking product technology & quality and in the process,creates an entirely new segment.


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Catch Salt & Spices

Unparalleled product quality. Host of never-before innovations. DS Groupmade its foray into food & beverages segment with Catch Salt & Pepper

packed in pioneering table-top rotatory dispensers which created a uniqueniche of its own.

Following this spectacularsuccess in 1987, the Groupfurther expanded the Catchrange to include the choicestspices. Handpicked from the

length and breadth of thesub-continent, Catch spicesare made available in fullyfood grade metal-linedcartons, flexible laminatesand convenient compositecans.

Low-temperature Grinding

Technology : What makesCatch spices, spicier than

anything else ? It is the state-of-the-art Low Temperature GrindingTechnology (LTG). Choicest ingredients are grounded at a very lowtemperature, thus preventing evaporation of volatile & delicate oils fromspices. Thereby, bringing to you the original aroma of the finest Indianexotica and its wholesome flavour.


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Catch Snacks

Further extending the promise of world-class quality & packagingrevolution, Catch added a range of sumptuous & farm-fresh snacks to itsrange in the year 2001. This includes premium quality Pistachios, Cashews,Green Grams, Green peas and especially imported Jumbo Corn which isretailed in two exciting spicy blends.

Catch Snacks are packed in special composite cans. Besides being exportedto leading stores internationally, they are also available at select outlets in

India.

Catch Spring - Cola, Lemon & Orange

Bringing excellence to innovation, Catch Spring Cola, Lemon & Orangegives the refreshing himalayan freshness in exciting flavours. The new range

promises to quench the long standing desire for a nupitial of pristine purityof Catch Spring Water with popular flavours.


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CONTACT US

We thank you for your interest in DS Group.

Please enter details about yourself in the form below, and go on to give usyour feedback. Your feedback will help us serve you better.

Core Management Group

BOARD OF DIRECTORS

Mr. Ravinder Kumar (Chairman)Mr. Rajiv Kumar (Managing Director)

Mr. Satya Narain GuptaMr. Rajendra Narain GoelaMr. Puesh KumarMr. Raj Kumar Kakrania

COMPANY SECRETARY

Mr. Sanjay Goyal

AUDITORS

M/S Jain Singhal & AssociatesM/S H.R. Surendra & Co

BANKERS


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State Bank of IndiaBank of BarodaPunjab National BankJammu & Kashmir BankAndhra BankCorporation Bank

CitibankICICI BankStandard Chartered Bank

REGISTERED OFFICE:

1711, S.P. Mukherjee MargDelhi-110006

CORPORATE OFFICE:

A-85 & 86, Sector 2,(Gautam Buddha Nagar)

Noida 201301, U.P, INDIA


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"DS Group is a realstory of a glorious

present enroute toan inspiring future"

Ravinder Kumar

Chairman

"Our brands addcredence to ouraxiom ofunmatchedquality."

Rajiv Kumar

Managing Director

"Our philosophy isof moving up thevalue chain byintegrating suppliercompetencies to

help increaseefficiency and

productivity"

Puesh Kumar

Director


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DOUBLE MAZAA

DOUBLE MAZAA is a convenient single pack, combining together the

lingering taste and freshness of RAJNIGANDHA Pan Masala and the purityof TULSI Royal Flavoured Chewing Tobacco. This is specially packed forour consumers to enjoy the taste of two premium products in a single

purchase.

It gives yet another reflection of the fact that we at DS, consistently seek toenhance your enjoyable experiences through our unique product offerings.

DOUBLE MAZAA is a reinforcement of our belief that everything we do,has the consumer at the center.


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DS Charitable Trust

The DS Group is a vibrant entity, alive to the social responsibility itshoulders as a committed corporate citizen. While it pursues leadership in its

business sphere, simultaneously it endeavours to spread hope, well-beingand enjoyment for all by thereby patronising various social activities.

Set up in 1983, the trust makes a humble contribution to social action byimproving the quality of life of the needy and the deprived.

Two such institutions which have benefited from this endeavour are theAnglo Sanskrit Victoria Jubliee Senior Secondary School and the

Commercial School, located at Daryaganj in Delhi.

The schools have been maintaining a place of pride in the academic circlesof Delhi, since 1869. These temples of learning have produced a galaxy ofscholars, doctors, engineers, administrators, politicians and business tycoons.


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DS Punjabi Kala Sangam

An endeavour to enrich and promote Indian art and culture.

The DS Group fosters a deep-rooted commitment to promote the entireIndian culture gamut. This ethos is embedded in the vision of Punjabi KalaSangam, and is mirrored in the unsparing patronage the Group accords tooutstanding talent and performance.

Punjabi Kala Sangam has instituted Kala Shree awards to give a fillip toremarkable talents in spheres of cinema, television, radio and fine arts.So far,over 700 renowned artists from diverse backgrounds have been felicitated

with this award, giving DS an opportunity to acknowledge and honour theirrich contributions in the field of Indian art and culture.


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Improving Life in North East

DS always pioneers new benchmarks. It was in this spirit that we boldlyventured into setting manufacturing units in the North East region therebysetting pace for industrialization & societal development. Today, we activelyemploy more than 1500 locals across different levels and aim to generateemployment for over 5000 people in a span of next five years throughvarious operations and diversifications.

Besides providing basic amenities, we are also actively considering settingup wide range of public service institutions like dispensaries, schools &orphan homes. We have also initiated opportunities of earning from home:for housewives.

We wish to make this unexplored part of India into a future industrial hubfor India, catering to the entire South East Asian economy.

Because, like business, care & development too does not have anyboundaries.


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SOCIAL & CHARITABLE ACTIVITIES

Actively participated and contributed towards the floodrelief activities in Nagaon, Morigaon & Nalbari districts ofAssam by providing relief material to the affected families Contributed Rs. 11 lacs to the Chief Ministers ReliefFund for flood relief in Assam. Contributed Rs. 1 crore in Chief Ministers Relief Fundfor Tsunami relief Financial assistance to Army Wives Welfare Association(AWWA) for the welfare of war widows of Assam Construction of the Science Laboratory and teachers

common room and toilets at Margherita College, Tinsukia -Assam Donated computer and furniture to schools in rural areasof Upper Assam Donated computer furniture to Department of Zoology,Guwahati College Constructed city bus passenger waiting shed nearGuwahati College Donated CGI sheets to Sonapur College, Guwahati forconstruction of a college building


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Main contributor for construction of under ground water storage tankfor fire fighting at Bamunimaidan Industrial Estate

Erection of steel made plaques of the Battle of Saraighat anddevelopment of the North Brook Gate at Sukreswar Park, Guwahati

Reconstruction of wall around the pond & brass fencing around thesteps, construction of a gate at the Ganesh Temple and construction ofSitlamai Mandir, Installation of Air circulation system and Waterfiltration unit at the Maa Kamakhya Temple

Aiding for construction of Kirtan Ghar at Sarthebari in lower Assam

Contributing in construction and marble work at Ganesh Temple nearGuwahati High Court

Aiding in reconstruction of boundary wall of the Jyotinagar Mosque Financial contributions for organizing Elephant festival at Kaziranga

Wild life Sanctuary in Assam to promote Wild Life Preservation Contribution for renovation of the Kaziranga Heritage IB at Baguri

prior to the celebration of the centenary of the Kaziranga NationalPark

Felicitating Outstanding Foresters on the eve of Kaziranga CentenaryCelebration with cash awards

Co-sponsor for Indo- Asean car rally Sponsored R.G. Baruah Memorial 15th All India Open Body Building

Competition Mr. Saraighat 2004 Aiding Jyotinagar Sangha to construct their office building and

gymnasium Sponsorship of Prag Cine Awards 2003 & 2004, constituted to

promote Assamese films and artists


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Sponsorship of Jyotirupa Drama Competition & Media Awards forexcellence in Film, Television & Music

Key Facts & Figures

The fundamental purpose of business is to add value. All endeavours at DS

are aimed at enduring value and achieving growth. Consistent rise in sales, asound net worth and the highest contribution to the state exchequer, in our

business, is a matter of pride for us.

With transparent dealings, we endure value, that in turn delivers that 'extra'to all our stake holders.

The Net Worth of DS Group has grown phenomenally over the last fewyears.

DS is also highest contributor to the central excise, in our business segment.


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Key Regional Office

The core strength of the group lies in it's expansive reach covering even theremotest part of the country.

We have 15 regional offices spread across the country.


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DS Group today is a diversified conglomerate with diverse business

interests.

The manufacturing locations of the group is spread across the country withmajor concentration in the North Eastern part of India.

Manufacturing Plants


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NAZAKAT

The Persian influence followed by the Mughal reign in India brought style,luxury and a new appetite of culinary exotics, with dinners usually endingwith a pair of paan .

With time dynamics, plausible alternatives developed but failed to deliverthe style, elegance, and taste which had reminiscence of that atypicalethnicity preferred by the legion.

Nazakat aims to fill the gap offering a nostalgic taste, elegant and tastefulmix of pan masala and tobacco with an exquisite perfume blend for those

preferring a discerning royal taste.


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NEW PROJECTS

Continuing the saga of expansion and diversification, the company hasventured into diverse business areas, with one vision, to become one of thelargest business conglomerate in the North Eastern part of the country. The

projects thus envisaged would catapult DS Group to a new high and carveout a special position for the group in the Corporate world. The present

backward integration and diversification foray is focused on Flexiblepackaging, Latex rubber related products, Hospitality, Real Estate etc.

FLEXIBLE PACKAGING


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Flexible packaging and printing is the fastest growing segment of thepackaging Industry worldwide. The efficient use of raw materials and high-tech product protection that can be achieved using flexible packaging hasmade it the most popular form of packaging both in India and the world. Theconverted flexible packaging market is estimated to be at 6 lac MT valued atapproximately Rs.12000 crores and is growing at a rate of 15% annually.

The high growth rate can be attributed to the rise in demand of branded foodand other products thereby leading to increased demand by the FMCGcompanies who are trying to increase penetration in the rural market withcost efficient, small size packs.

The good quality laminate printers and packagers are mostly located in theNorthern and Western part of the country and it is difficult for them to caterthe requirements of Eastern and North Eastern markets at competitive rates.The manufacturers in Eastern and North Eastern region do not have thestate-of the-art machines as well as technology, which thereby gets

reflected in the product quality. One the other hand, the presence of FMCGcompanies in the North East has increased with excise exemption in place.

The company identified the opportunity to cater to the emerging demand ofhigh quality packaging, in the region, supported by competitive pricing. Thecompany is also focusing on emerging demands from the markets ofBangladesh, Nepal and Central India apart from internal consumption.

The printing, packaging and lamination plant would be equipped with state-of-the-art technology of printing, lamination, slitting and pouching providinga complete packaging solution. The company has taken keen interest toequip the plant with latest R&D facilities so as to meet the changingrequirements of the industry and to be the pioneer in introducing innovative

packaging solutions.

The civil work at the site has already started. The plant is expected to befunctional in the last quarter of financial year 2005-06 and will provide

employment to over 200 persons.

HEAT RESISTANT LATEX RUBBER THREAD (HRLRT)

Heat Resistant Latex Rubber Thread ( HRLRT) is a 12000 MT industryvalued at Rs. 150 crores annually. HRLRT is the most critical product inelastic manufacturing, used in garments, hosiery, socks, sports wear, luggage


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etc. The sector is experiencing a spurt in demand after the lifting of garmentquota restriction by USA and European Union, effective from January 2005.

The international market is dominated by large players with multiple lines,whereas the Indian industry has small manufacturers with capacities below3000 MT per annum. The inconsistency in the product quality of domesticmanufacturers led big consumers of rubber thread to import theirrequirements from Thailand and Malaysia. The estimated rubber threadimports in India is 2500 MT annually.

Citing the potential, the company decided to set-up a state-of-the-art RubberThread Manufacturing facility at Agartala, Tripura. The state of Tripura isthe second largest natural rubber producer in India and is showing aconsistent growth in production. The World bank and Rubber Board hasidentified the region as high growth area which can lead to increasedeconomic activity and all round development of the state.

The proposed rubber thread unit is being set-up using the latest Europeantechnology, which is recognized as one of the best sources for HRLRTtechnology in the world. The unit will be a model unit in the region and willgenerate direct employment for over 200 people. The company aspires to

become the largest player in the country in this segment with a total installedcapacity of 20,000 MT annually.

The plant will be operational in the last quarter of 2005-06.

CONFECTIONARY

The potential within Indian markets has propelled foreign brands to enterIndia. DS Group realizing the potential is aggressively planning to diversifyin the field of confectionary because of it's natural and coherent strength indistribution. In search of a formidable international brand a joint venture has

been formalized with the world's leading confectionary giant "LOTTE"group of Japan.

HOSPITALITY

The demand in the hospitality industry in on a rise. The industry iswitnessing a rise in occupancy level, thereby reinforcing the claim of risingdemand. The growth is contributed to rise in business travel, corporateleisure travel, rise in domestic and international tourism, relaxation of visa


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rules etc. The growing image of the country as an attractive touristdestination is likely to result in the domestic tourism sector growingexponentially in the coming years. In one of the recent surveys conducted byKelloggs school of Management, US and Sasin School of BusinessAdministration, Thailand and India is ranked as the second best exotictourist destination with real growth rate of 8.8 percent. As per the recent

reports India is ranked as the 6th most favoured destination of the world.

The industry consists of around 1,800 properties comprising of 84,000rooms currently, which is likely to increase to at least 1,30,000 rooms by2008. Presently this sector contributes around $25 billion worth of economicactivity - around 4.8% of the GDP whereas the global average is 10%.Hence, international benchmark offers a lot of headroom for the domesticindustry to catch up. This sector is expected to grow by around 6% CAGR

In line with our long-term business plan and keeping in view theopportunities available in the hospitality sector, DS has decided to foray intothe Hotel Business. We propose to have a large chain of business hotelsacross India for which we plan to have strategic business alliance andmanagement tie-ups with hotel chain of international repute. The companyalready has its presence in the sector with Manu Maharani, which is a

premium hotel in Nainital.

Based on the detailed study on business potential and opportunities

available, company has decided to go for six destinations in the first stage.

Our target segment for positioning is 5 Star Standard Business Hotels .

REAL ESTATE

India has a vast untapped potential in the sector of real estate developmentand is on its way to become a desired location for international real estateinvestors and developers. The sector reflects its impact on the GDP wherebyevery rupee spent adds Re. 0.78 in the GDP. The sector also affects 250

related ancillary industries and is the second highest employment generatorin the country. The Real Estate Sector in India has seen a wide spectrum ofchanges : for starters, developers have realized the merits of transforminginto corporate functioning and enhancing transparency in terms of theirfinancials. The Real Estate market is growing at an annual rate of 30 per centwith steady growth in residential properties, shopping malls, multiplexes,food outlets, office spaces, convention and business centers across India.


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Diversification and consolidation in the Real Estate Sector has been a part ofDS long-term strategic imperative. Keeping in view the present potential inthe sector of land banking, the company has embarked upon a plan toacquire strategic sites in Delhi NCR region and land adjacent to Gurgaon-Jaipur highway. The company intends to foray in the field of colonising anddeveloping the acquired land in the near future and as a first step intends to

develop a residential and commercial property on 600 acres land nearGurgaon.

THE ROAD AHEAD

. . . and miles to go before I sleep. Continuing with the journey, there aremany more milestones to be covered including power generation, educationand other infrastructural projects. In-depth feasibility analysis is going on forventuring into the power sector, considering the options of generation anddistribution and transmission to power dry states. It is just a matter of time

that DSL will be recognized not only in the field of FMCG but as a model ofwell-diversified conglomerate


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NAZAKAT

The Persian influence followed by the Mughal reign in India brought style,luxury and a new appetite of culinary exotics, with dinners usually endingwith a pair of paan .

With time dynamics, plausible alternatives developed but failed to deliverthe style, elegance, and taste which had reminiscence of that atypicalethnicity preferred by the legion.

Nazakat aims to fill the gap offering a nostalgic taste, elegant and tastefulmix of pan masala and tobacco with an exquisite perfume blend for those

preferring a discerning royal taste.


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Born on 01-01-1901, Call it coincidence. Or call it destiny. Birth of a legendShri Dharampal Ji, remains the dawn of a new era.

An era when the nation was to experience the taste of independence.Beginning with a modest perfume shop in Chandni Chowk, in the heart ofDelhi, Shri Dharampal Ji, was adding his personal touch in spreading

fragrance to the nation. A self-starter and a visionary, he was farsighted toconceive the impossible.

Shri Satyapal Ji was a visionary who made everything possible. He inheritedhigh virtues and aspiration for being the best in one's own business. His in-depth knowledge of perfumes honoured him with the title of "Sugandhi"(Perfumer). Shri Satyapal Ji was skilled at blending tradition with modernity.He is credited with blending chewing tobacco with exquisite perfumes. He isalso known for bringing the element of quality and research, hithertounknown in this category. Today, all our endeavours are guided by his

mission of offering the unmatched.


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1929 : A modest perfume shop set up in Chandni Chowk, Delhi.

Tobacco & Related Products

1948 : Quality chewing tobacco launched.

1964 : BABA - the flagship brand launched.

1979 : Tulsi touches millions.

1983 : Rajnigandha redefines pan masala category.

1990 : Tulsi Mix matches expectations.

2001 : My Mix & Double Mazaa capture the market.

2002 : Rajni & Toofani storm the market.

2004 : Nazakat spells its charm

Foods & Beverages

1987 : Foray into F&B, Catch Salt & Pepper sprinklers launched.

1999 : Catch Natural Spring Water launched.

2000 : Catch Kitchen Range Spices launched.

2001 : Foray into Snacks.

2002 : Catch adds fizz with the launch of Catch Club Soda.

2003 : Catch Clear Flavoured Drink launched.

2004 : Catch Tonic water added

Over The Years . . . . . .


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2004 : Catch Jaljeera becomes instant favourite

2005 : Catch Spring Cola, Lime & Orange give a refreshing change

2005 : Catch Spice 6, stirs up the spice market

Mouth Freshener

1999 : PASS PASS - Saunf-date fruit assorted fun mix refreshes the nation.

2005 : Paas Paas Meetha Magic launched

Hospitality

2000 : Manu Maharani, Nainital, sets new benchmarks

2005 : DS plans major diversification and expansion in the hospitality sector

Retail

2003 : DS draws up plan for a mega retail project

Rubber

2004 : Plans to set up Rubber complex at Agartala

Lamination Printing & Packaging

2004 : Plans to set up Printing, Packaging and Lamination unit at Guwahati

2004 : DS & Lotte, Japan formed a joint venture to produce and marketconfectionaries

Real Estate

2004 : Entry into Real Estate bussiness

International Alliance

1991 : DS & SRW Maschinen (I) Ltd, Germany, come together toelectronically produce finest malleable silver foils in India.


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2001 : DS & Canpac, Switzerland join hands to bring world-class eco-friendly packaging solutions to India.

2004 : DS & Process Engineering, Italy for providing technology for HeatResistant Rubber Thread project.


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PASSPASS

Thesaunf-datefruit fun mix.

PASSPASS is the story of a brand that has created a new product categoryaltogether.

The nation's first ever, branded healthy assorted mix, PASSPASS offers the

freshness of hand-picked quality dry dates, saunf(fennel), coconut, saffron,silver coated cardamom seeds, coriander seeds, melon seeds, naturalsweetener and herbs. With its fresh and crunchy feel it is the right mix forguilt free indulgence.

Available in delightful flavours, packed in trendy flip-top packs, sachets anddinning table packs PASSPASS has today become a benchmark in theindustry for new product creation. Paas Paas Meetha Magic Launched in2005 offers a sweeter version of Paas Paas with coloured fennel, dates,coated sugar balls, silver coated cardamom, rose petals and pan leaves. Tasteso tempting that you will never get it off your mind.


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RAJNIGANDHA Pan Masala

Art and acumen. Emotion and enthusiasm. Passion and perfection. Packedtogether since 1983 ... Nothing compares to RAJNIGANDHA.

RAJNIGANDHA is the world's largest selling premium flavoured Pan

Masala. Made up of hand-picked cardamom, lingering lime, pure menthol,clear catechu, best betel nuts and the finest flavours. RAJNIGANDHA hasbeen offering quality taste, time after time.

It is available in vacuum packed cans, that ensure longer shelf life, andlonger retention of its exquisite aromatic fragrance.

Rajnigandha is available in 1.6 gm, 4 gm, 8.5 gm, 18 gm, 50 gm, 100 gm,250 gm and 1000 gm pack sizes.


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Need creates demand, a long felt need and aspiration of millions got fulfilledin Toofani.

Making a spectacular foray into the popular category, Toofani caught theimagination of the market in no time. A unique blend of choicest ingredientsat easy-to-afford prices gave Toofani Flavoured Pan Masala its distinct

place in the crowd.

Toofani with its unique taste and flavour entices the gutsy. With a aromawhich gives to drool and a pleasure which lasts long, Toofani is the favoritewith all.


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SWASTHYAGRAM

Modern Medicine have made an exceptional progress in the last twocenturies but even today physicians world over believe in treatment of somechronic and acute diseases by natural resources.

'The Health Villa' - SWASTHYAGRAM -a yoga and nature cure centreestablished at Manesar, India, provides expert treatment based on the

principles of Naturopathy, for all chronic and acute diseases.

The peaceful environs, amongst which the center is developed, augment thetherapeutic effects of the treatment offered. Thus, preserving the tradition for

the next generations.

SWASTHYAGRAM - The Health Villa, a way of life in the lap of thenature.

SWASTHYAGRAM

Modern Medicine have made an exceptional progress in the last twocenturies but even today physicians world over believe in treatment of somechronic and acute diseases by natural resources.

'The Health Villa' - SWASTHYAGRAM -a yoga and nature cure centreestablished at Manesar, India, provides expert treatment based on the

principles of Naturopathy, for all chronic and acute diseases.

The peaceful environs, amongst which the center is developed, augment the

therapeutic effects of the treatment offered. Thus, preserving the tradition forthe next generations.

SWASTHYAGRAM - The Health Villa, a way of life in the lap of thenature.


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Tulsi Mix '0'

Tulsi Mix 0 is a blend of tobacco and Pan Masala that offers complete andlong lasting satisfaction. Spiced with specially prepared natural perfumedcompound, made with extracts of fresh flowers, tobacco, betelnut, catechuand lime.

Tulsi Mix combines the right blend with quality customized to suit diverseregional palates.


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TULSI MY MIX

My Mix, is a mix of pan masala and tobacco to give you a perfect blend,ensuring a lasting satisfaction.

Made with natural ingredients like, raw tobacco, betel nut, catechu and limepowder blended with specially prepared natural perfumed compounds.

Tuls i Royal F lavoured Chewing Tobacco

The DS Group has been a pioneer in introducing hygienically processed andpacked chewing tobacco. Assured for international quality, refreshing tasteand fragrance.

TULSI has been created after years of research for that perfect flavour andenticing aroma. Made from fresh and natural ingredients like tobacco flakes,vegetarian silver foil, permitted spices, saffron and added flavours, Tulsigives an excellent taste for instant satisfaction,long-lasting flavour and

fragrance.

Tulsi Royal Chewing Tobacco is available in five varieties;0, 00, 000,0000, 00000, offering varying degrees of refinement. With a touch ofsilver and saffron, Tulsi caters to discerning taste buds.Tulsi is available withsilver and without saffron variety as well as with saffron without silvervarieties. The products are available in pack sizes of 0.5gm, 10gm, 50gm &200gm.


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Tulsi Royal Flavoured Chewing Tobacco

The DS Group has been a pioneer in introducing hygienically processed and

packed chewing tobacco. Assured for international quality, refreshing tasteand fragrance.

TULSI has been created after years of research for that perfect flavour andenticing aroma. Made from fresh and natural ingredients like tobacco flakes,vegetarian silver foil, permitted spices, saffron and added flavours, Tulsigives an excellent taste for instant satisfaction,long-lasting flavour andfragrance.

Tulsi Royal Chewing Tobacco is available in five varieties;0, 00, 000,

0000, 00000, offering varying degrees of refinement. With a touch ofsilver and saffron, Tulsi caters to discerning taste buds.Tulsi is available withsilver and without saffron variety as well as with saffron without silvervarieties. The products are available in pack sizes of 0.5gm, 10gm, 50gm &200gm.

TULSI has been created after years of research for that perfect flavour and

enticing aroma. Made from fresh and natural ingredients like tobacco flakes,vegetarian silver foil, permitted spices, saffron and added flavours, Tulsigives an excellent taste for instant satisfaction,long-lasting flavour andfragrance.

Tulsi Royal Chewing Tobacco is available in five varieties;0, 00, 000,0000, 00000, offering varying degrees of refinement. With a touch ofsilver and saffron, Tulsi caters to discerning taste buds.Tulsi is available withsilver and without saffron variety as well as with saffron without silver

varieties. The products are available in pack sizes of 0.5gm, 10gm, 50gm &200gm.


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Tulsi Royal Flavoured Chewing Tobacco

The DS Group has been a pioneer in introducing hygienically processed and

packed chewing tobacco. Assured for international quality, refreshing tasteand fragrance.

TULSI has been created after years of research for that perfect flavour andenticing aroma. Made from fresh and natural ingredients like tobacco flakes,vegetarian silver foil, permitted spices, saffron and added flavours, Tulsigives an excellent taste for instant satisfaction,long-lasting flavour andfragrance.

Tulsi Royal Chewing Tobacco is available in five varieties;0, 00, 000,

0000, 00000, offering varying degrees of refinement. With a touch ofsilver and saffron, Tulsi caters to discerning taste buds.Tulsi is available withsilver and without saffron variety as well as with saffron without silvervarieties. The products are available in pack sizes of 0.5gm, 10gm, 50gm &200gm.


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A tryst with a taste which befits monarchs ! Blendedwith BABA 600 the best chew-tobacco man has ever produced, endowed with refinedblend, spiced with secretive aroma , the richness of silver flakes with an exquisite blendof pan masala ; TULSI ROYAL GOLD with BABA 600 offers the SUPREME tastewhich only the monarchs dare to savor.

Made with natural and herbal ingredients like choicest tobacco & betel-nuts,catechu, lime powder, cardamom, menthol, delectable flavors, specialtyherbs and permitted spices, TULSI ROYAL GOLD with BABA 600 reigns

supreme.

TULSI ROYAL GOLD with BABA 600 is available in pouch packing.

TULSI ROYAL GOLD

blended with BABA 600


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TULSI ROYAL GOLDSaff ron b lended Pan Masala

Tulsi Royal Gold pan Masala offers a succulent taste of richness and royaltyreflected in its unsullied blend of choicest tobacco and pan masala embroiledin flavoring saffron which augments the taste to make it fit for the majesticdesires.Made with natural and herbal ingredients like betel-nuts, catechu, lime

powder, cardamom, menthol, delectable flavors, specialty herbs andpermitted spices, Tulsi Royal Gold pan Masala offers a real royal taste, fit

for a king! Jiyo Maharaja style


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REACH US . . . . .

We thank you for your interest in DS Group.

In case you have any further queries, please feel free to mail us at:

[email protected]@dsgroupindia.com

Shweta Sarkar

ExecutiveCorporate CommunicationsDS GroupA - 85/86, Sector 2

Noida - 201301India

Tel: 91 (120) 2522140, 2530554Fax: 91 (120) 2522592
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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TULSI ROYAL MIX 00 & NES

Tulsi Royal Mix Pan Masala with Tulsi 00 is a perfect mix of power andpompous taste blended to pamper your taste buds. Pledging to deliver thestrength and punch of tobacco alongwith a perfect mlange of pan masalawhich spells the grandeur of eloquent vigor, lingering freshness andmellowed smoothness.

Offering a perfect blend to the coterie of connoisseurs, The New ExtraStrong Tulsi Royal Mix Pan Masala with Tulsi '00' promises to deliver the

power and punch of tobacco alongwith a perfect blend of pan masala whichspells the clout of power , extra strength, a verve taste and lingeringfreshness.


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Vision & Mission

Innovating Enjoyment With That Extra Flavour.

Enduring value. Enhancing appeal. Enriching life. By adding that extraflavour. We are constantly innovating to offer products & services, whichare distinctive, differentiating and not the ordinary.

To sustain global leadership in the Chewing Tobacco Business. To become a household name for quality products in Foods &Beverages. To set new benchmarks in the sectors we operate.


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OUR LOGO OUR SPIRIT

Our logo is a visual manifestation of our spirit to continuously innovate andrediscover ourselves to accomplish newer frontiers.

It projects our firm determination to become a world leader and conveys adistinctive image of innovation and change.


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DS Group is today a well - diversified conglomerate with businessleadership across wide spectrum of industries - right from chewing tobacco,food & beverages, real estate, hospitality and packaging.

.We are proud to have build strong Indian brands and sustained theirleadership over the years - and are proud to share with you some of ourcompetencies, which constitute the backbone of our success acrossdiversified sectors.

Continuous investment into research & development forms the very elixir ofthe DS Group. Be it developing indigenous technologies or embracinginternational technological solutions -we ensure that any product from ourstable sets global benchmarks in innovation & quality.

A well-documented process is adopted for product development & qualityassurance. Apart from a centralized R&D laboratory housed at the corporateoffice, all our manufacturing units are also equipped with state-of-the-arttechnology and specialized microbiology labs.

.While dedicated teams of research specialists continuously work towardsbringing enhancements in existing products, the quest for innovation leadsus to interact & learn from global leaders in various segments. This has beenthe guiding philosophy in associating with some of the best-knowncorporates to bring never-before innovations in the country. These

innovations are result of our meticulous research into ever-changingcustomer needs and creating new segments to pro-actively fulfill therequirements. Our associations include tying-up with Canpac of Switzerlandto bring biodegradable, composite can packaging; Wallner from Germany to

bring nation's first 100% vegetarian silver foils; Sidel France for springwater bottling operations and now Process Engineering, Italy for providingtechnology for manufacturing Heat Resistant Rubber thread and lot more!


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To effectively back our quest for innovation as well as passion to expandinto newer frontiers, we have build considerably strong projectimplementation skills over past few years. Right from site selection, facility

planning, construction & placement to project commissioning-we have aspecialized team to deliver timely turnkey projects.

.We are just providing instances of some of our recent projects, set up by us :

PROJECTS PROJECTCOST(Investment)

TECHNICALCOLLABORATION

SET UPDURATION

Manufacturingfacilities for

chewingtobacco brandsat Guwahatiand Agartala

Rs.18crores (Indigenous) 11months

DS CanpacDivision

Rs.17crores Canpac,Switzerland

6 months

Natural SpringWater Bottling

Plant at Kullu

Rs.14crores Sidel, France 6 months


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Present in all 28 states

Manufacturing sites at HP, UP & North East 16 DEPOTS across India 17 C&S Agents across India 1800 authorized dealers Product availability at 1.6 million outlets

Besides a widespread national reach, we are proud to have established an

enviable market for our brands at leading International markets - withdedicated agents to serve markets at Canada, North America, South AmericaAfrica, Europe, Middle East and Far East.

Effectively backing this wide reach is an efficient logistics and supply chainmanagement-which continuously strives to establish a productive synergyamongst various suppliers all over the world as well as timely delivery ofraw materials and finished products across various outlets. The initiative isfurther supported by an extensive ERP implementation across all ourmanufacturing bases as well as key depots-thus helping us to constantly

monitor & adapt to changing market parameters almost with real-timeeffectiveness.

These systems are continuously updated-so that we can give enjoyment tothe customer, the way he wants it!

The facilities at Guwahati are ISO 9001 certified


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DS Group is today a well - diversified conglomerate with businessleadership across wide spectrum of industries - right from chewing tobacco,food & beverages, real estate, hospitality and packaging.

.We are proud to have build strong Indian brands and sustained theirleadership over the years - and are proud to share with you some of ourcompetencies, which constitute the backbone of our success acrossdiversified sectors.

Continuous investment into research & development forms the very elixir ofthe DS Group. Be it developing indigenous technologies or embracinginternational technological solutions -we ensure that any product from ourstable sets global benchmarks in innovation & quality.

A well-documented process is adopted for product development & qualityassurance. Apart from a centralized R&D laboratory housed at the corporate

office, all our manufacturing units are also equipped with state-of-the-arttechnology and specialized microbiology labs.

.While dedicated teams of research specialists continuously work towardsbringing enhancements in existing products, the quest for innovation leadsus to interact & learn from global leaders in various segments. This has beenthe guiding philosophy in associating with some of the best-knowncorporates to bring never-before innovations in the country. Theseinnovations are result of our meticulous research into ever-changingcustomer needs and creating new segments to pro-actively fulfill the

requirements. Our associations include tying-up with Canpac of Switzerlandto bring biodegradable, composite can packaging; Wallner from Germany to

bring nation's first 100% vegetarian silver foils; Sidel France for springwater bottling operations and now Process Engineering, Italy for providingtechnology for manufacturing Heat Resistant Rubber thread and lot more!

For us, innovation & enjoyment begins at our work place! We believe ingrooming each of our team member to be the Messenger of Joy. And to helphim spread enjoyment all across, DS has implemented a well-thoughtLeadership Model-which brings transparency, collective wisdom,

performance orientation & minimum response time.

DS group is a function-driven lean organization. Not only are the teammembers given exposure to intra-functional & inter-functional tasks, theyare equipped with world-class training & continuous development programs-


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which all go a long way in laying strong foundation of a dynamic & vibrantorganization.

Today, DS is a family of around 2000 innovators-eachcontributing in theirown significant way to make the world a happier place to live in & enjoyliving! Through DS's unique products and offerings.


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RESEARCH OBJECTIVE

The main objective of the research was to do a extensive study of

systems,practices and structures of selective companies for snack food with

relevance to convenience channel and compare the same with those of itc. in this

project i had to visit various distributorsof various companies in various regions

and find out about the practices and systems that they are following.I had to also

study the various schemes that itcs competitors are giving and compare it with

the schemes of ITC and find out which one is better.I had to also study the

margin structures that the various companies were giving to their retailers and

distributors and compare it with ITCS that with one is better.

The focus of this research is to find out how other companies like lays and

haldiram its major competitors what practices are they following, what is their

distribution network like how many variants do they have in the snack food. The

scope of the project involved the following areas to be covered extensively-

Ordering, delivering and cash collection models- people& processes. under

this I had to cover the distributors profile, that is their location and number. What

are the loctions where the distributors are located and hoe many of them are

there in number for each region and each company.secondly I had to understandthe infrastructure that the distributors are using like mechanized and non

mechanized units which includes three wheelers, rickshaw, mopeds, cycles

etc.Then I had to know about the margins that the various companies are giving

to their distributor and retailers.Then I had to study about the coverage plan,

which involves the total number of outlets that the distributors cover in their

regions for respective companies, and what is their mode of transportation,

through which they cover these outlets. Then I ha d to find out the frequency of

service that the salesmen of respective compnies are undergoing in respective to

the outlets that they cover, that is how many times in a week is one salesman

covering a particular outlet.I had to also find out about the no of sku;s and

varients that each of these companies have.Then I had to know about the norms


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and delivary process of various companies, what norms do the distributors have

to follow set by the company, and what is their delivary process. Then I had to

find out about the cash and credit collection method that the distributors are

giving to the retailers.I had to also find out about the billing methods and the

various sehemes that the companies are giving to the consumers.Apart from this

I had to also find out about the stock rotation , and damage stock replacement

policies of the companies, and also about maintaining bingo rack hygine.

THE RESEARCH

The Research Methodology

Research Objective-To suudy the systems, practices and structures of selective

companies for snack food in convenience channel and compare it with ITC.

Research Design: Descriptive research design has been used.

Research Plan

Data sources: Primary data has been used .

Research Approaches: Type of research approaches used is:

o Survey Research

Research Instruments: Questionnaires (closed end & open end questions have

been used)

Sampling Plan: Sampling Unit: Distributors of various companies in various

regions.

o Sampling Procedure : cluster Sample.


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Contact Methods: Face to face interviews.

Survey Research has been used because of the following reasons:

Can accommodate large sample sizes and generalize results

Can distinguish small differences

Ease of administering and recording questions and answers

Ability to use statistical analysis

Factors and relationships not directly measurable can be studied


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SUCCESSFUL INVENTORY MANAGEMENT

Successful inventory management involves balancing the costs of inventory

with the benefits of inventory. Many small business owners fail to appreciate

fully the true costs of carrying inventory, which include not only direct costs

of storage, insurance and taxes, but also the cost of money tied up in

inventory. This fine line between keeping too much

inventory and not enough is not the manager's only concern. Others include:

1. Maintaining a wide assortment of stock -- but not spreading the

rapidly moving ones too thin;2. Increasing inventory turnover -- but not sacrificing the service level;

3. Keeping stock low -- but not sacrificing service or performance.

4. Obtaining lower prices by making volume purchases -- but not ending

up with slow-moving inventory; and

5. Having an adequate inventory on hand -- but not getting caught with

obsolete items.

The degree of success in addressing these concerns is easier to gauge for

some than for others. For example, computing the inventory turnover ratio is

a simple measure of managerial performance. This value gives a rough

guideline by which managers can set goals and evaluate performance, but it

must be realized that the turnover rate varies with the function of inventory,

the type of business and how the ratio is calculated (whether on sales or cost

of goods sold).

Average inventory turnover ratios for individual industries can be obtained

from trade associations.


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THE PURCHASING PLAN

One of the most important aspects of inventory control is to have the items

in stock at the moment they are needed. This includes going into the market

to buy the goods early enough to ensure delivery at the proper time. Thus,

buying requires advance planning to determine inventory needs for each

time period and then making the commitments without procrastination. For

retailers, planning ahead is very crucial. Since they offer new items for sale

months before the actual calendar date for the beginning of the new season,

it is imperative that buying plans be formulated early enough to allow for

intelligent buying without any last minute panic purchases. The main reason

for this early offering for sale of new items is that the retailer regards the

calendar date for the beginning of the new season as the merchandise date

for the end of the old season. For example, many retailers view March 21 as

the end of the spring season, June 21 as the end of summer and December 21

as the end of winter.

Part of your purchasing plan must include accounting for the depletion of the

inventory. Before a decision can be made as to the level of inventory to

order, you must determine how long the inventory you have in stock will

last. For instance, a retail firm must formulate a plan to ensure the sale of the

greatest number of units. Likewise, a manufacturing business must formulate

a plan to ensure enough inventory is on hand for production of a finished

product.

In summary, the purchasing plan details:


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1. When commitments should be placed;

2. When the first delivery should be received;

3. When the inventory should be peaked;

4. When reorders should no longer be placed; and

5. When the item should no longer be in stock.

Well planned purchases affect the price, delivery and availability of products

for sale.

_____________________________________________________________


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CONTROLLING YOUR INVENTORY

To maintain an in-stock position of wanted items and to dispose of unwanted

items, it is necessary to establish adequate controls over inventory on order

and inventory in stock. There are several proven methods for inventorycontrol. They are listed below, from simplest to most complex.

1. Visual controlenables the manager to examine the inventory visually

to determine if additional inventory is required. In very small

businesses where this method is used, records may not be needed at

all or only for slow moving or expensive items.

2. Tickler control enables the manager to physically count a small

portion of the inventory each day so that each segment of the

inventory is counted every so many days on a regular basis.

3. Click sheet controlenables the manager to record the item as it is used

on a sheet of paper. Such information is then used for reorder

purposes.

4. Stub control(used by retailers) enables the manager to retain a portion

of the price ticket when the item is sold. The manager can then use the

stub to record the item that was sold.

As a business grows, it may find a need for a more sophisticated and

technical form of inventory control. Today, the use of computer systems to

control inventory is far more feasible for small business than ever before,

both through the widespread existence of computer service organizations andthe decreasing cost of small-sized computers. Often the justification for such

a computer-based system is enhanced by the fact that company accounting

and billing procedures can also be handled on the computer.


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1. Point-of-sale terminals relay information on each item used or sold.

The manager receives information printouts at regular intervals for

review and action.

2. Off-line point-of-sale terminals relay information directly to the

supplier's computer who uses the information to ship additional itemsautomatically to the buyer/inventory manager.

The final method for inventory control is done by an outside agency. A

manufacturer's representative visits the large retailer on a scheduled basis,

takes the stock count and writes the reorder. Unwanted merchandise is

removed from stock and returned to the manufacturer through a

predetermined, authorized procedure.

A principal goal for many of the methods described above is to determine

the minimum possible annual cost of ordering and stocking each item. Two

major control values are used:

1) the order quantity, that is, the size and frequency of orders; and

2) the reorder point, that is, the minimum stock level at which additional

quantities are

ordered. The Economic Order Quantity (EOQ) formula is one widely used

method of computing the minimum annual cost for ordering and stocking

each item. The EOQ computation takes into account the cost of placing an

order, the annual sales rate, the unit cost, and the cost of carrying inventory.

Many books on management practices describe the EOQ model in detail.


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DEVELOPMENTS IN INVENTORY MANAGEMENT

In recent years, two approaches have had a major impact on inventory

management: Material Requirements Planning (MRP) and Just-In-Time (JIT

and Kanban). Their application is primarily within manufacturing but

suppliers might find new requirements placed on them and sometimes

buyers of manufactured items will experience a difference in delivery.

Material requirements planningis basically an information system in which

sales are converted directly into loads on the facility by sub-unit and time

period. Materials are scheduled more closely, thereby reducing inventories,

and delivery times become shorter and more predictable. Its primary use is

with products composed of many components.

MRP systems are practical for smaller firms. The computer system is only

one part of the total project which is usually long-term, taking one to three

years to develop.

Just-in-time inventory management is an approach which works to eliminate

inventories rather than optimize them. The inventory of raw materials and

work-in-process falls to that needed in a single day. This is accomplished by

reducing set-up times and lead times so that small lots may be ordered.

Suppliers may have to make several deliveries a day or move close to the

user plants to support this plan.


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TIPS FOR BETTER INVENTORY MANAGEMENT

At time of delivery

1. Verify count -- Make sure you are receiving as many cartons as arelisted on the delivery receipt.

2. Carefully examine each carton for visible damage -- If damage is

visible, note it on the delivery receipt and have the driver sign your

copy.

3. After delivery, immediately open all cartons and inspect for

merchandise damage.

When damage is discovered

1. Retain damaged items -- All damaged materials must be held at the

point received.

2. Call carrier to report damage and request inspection.

3. Confirm call in writing--This is not mandatory but it is one way to

protect yourself.

Carrier inspection of damaged items

1. Have all damaged items in the receiving area -- Make certain the

damaged items have not moved from the receiving area prior to

inspection by carrier.

2. After carrier/inspector prepares damage report, carefully read before

signing.


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After inspection

1. Keep damaged materials -- Damaged materials should not be used or

disposed of without permission by the carrier.

2. Do not return damaged items without written authorization from

shipper/supplier.


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SPECIAL TIPS FOR MANUFACTURERS

If you are in the business of bidding, specifications play a very important

role. In writing specifications, the following elements should be considered.

1. Do not request features or quality that are not necessary for the items'

intended use.

2. Include full descriptions of any testing to be performed.

3. Include procedures for adding optional items.

4. Describe the

itc-impact of itc on fmcg sector

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