Professional Documents
Culture Documents
Research Methodology
Financial analysis
Bibliography
10. Appendix
INTRODUCTION
With a history that goes back to 50 years, B.L. Agro Oils Ltd. is a company with a
possible edible oil that would offer healthier and tastier solution to millions of
VISION
MISSION
the Indian market and to become the preferred Indian edible oil name globally.
QUALITY POLICY
B.L. Agro Oils Ltd. is committed to total customer satisfaction, and compliance
We aim to
customer needs so as to offer finest quality products that at all times meet our
customers' expectations and the ever changing demands of the market place.
- Provide a high level of service to our customers with minimum cause for
complaint.
- Maintain a healthy & constructive work environment that enables personnel to
produce
Optimal output.
MANAGEMENT
The foundations of B.L. Agro were laid half a century ago by its Managing
Director,
Shri Ghanshyam Khandelwal - a veteran of the Indian mustard industry. Since then
the management of B.L. Agro has gained an unmatched, in-depth insight of the
industry and the continuously evolving customer needs. The leadership at B.L.
Agro has a vision for the future and their acumen in adapting to the changing times
However, the most important attribute of the B.L. Agro leadership is the un-fallible
At B.L. Agro 'No Compromise with Quality' is a guiding philosophy. And the
management takes it as their responsibility to not just ensure the highest quality
standards of company's products but also to instill this 'quality attitude' in every
strong belief that Success and growth do not mean much unless accompanied by
trust and respect from the community. And over the years this belief has ensured
that as a corporate citizen, B.L. Agro Oils Ltd. earns an image of one of the most
Ghanshyam Khandelwal
Managing Director
A true entrepreneur, Ghanshyam Khandelwal stepped into the mustard oil trading
business in the 1950s when he was still at a very young age. Beginning from
into one of the most preferred mustard oil brand in the entire belt of Eastern UP.
A man of foresight and vision Ghanshyam Khandelwal has been the guiding force
behind consistent growth of B.L. Agro Oils Ltd. With an eye on the future, he has,
over the years, displayed a tremendous prowess for anticipating the changing
dynamic industry scenario. The mantras of his success include his unflinching
What distinguish Ghanshyam Khandelwal are his philosophies that originate from
very young age. A quick learner and a very hard worker he learnt the nuances of
the trade within no time and established himself as a growth motivator by bringing
has an unmatched hold on the market pulse. Still in his prime youth, he has already
played a key role in taking B.L. Agro to newer heights. In his leadership, the
company entered into the consumer packs segment and the venture resulted in
unprecedented success.
Having spent over 12 years in this trade, Ashish Khandelwal possesses a rare
outlook, he has an unmatched ability to think ahead of the times and a vision that is
Director Marketing
BTech from IET, Lucknow and MBA from ICFAI, Hyderabad. Richa Khandelwal
adds a fresh dimension to the management competencies at B.L. Agro. Among her
many contributions to the organization is her vision to take B.L. Agro to the
With path-breaking ideas, Richa Khandelwal has played a key role in further
strengthening the Bail Kolhu and other B.L. Agro brands and has led its expansion
into Delhi NCR and other newer territories with outstanding success. In a short
span of time, she has turned Bail Kolhu into a household name in Delhi that has
Always a forward looking person, Richa Khandelwal has helped the organization
get into an overdrive with her astute marketing strategies and innovative
techniques.
Growth so Far
Having started as a mustard trading house in 1958, B.L. Agro has come a long way
today. During the course of its journey, 1999 proved to be a landmark year which
FMCG company. The year witnessed the birth of B.L. Agro Oils as a registered
company and also marked its advent into quality control, packaging and marketing
of consumer packs of their flagship brand - Bail Kolhu Kachchi Ghani Mustard
Oil. Achieving an astonishing turnover of Rs. 60 crores in the first year itself, the
Expansion and up-gradation has been a continuous process for B.L. Agro. The
marketers of a single mustard oil brand subsequently started rolling out multiple
varieties of mustard oil - thus catering to a much wider consumer base. As the
product range swelled, the competencies, capabilities and capacities were
continuously enhanced to meet the growing challenges. However even with its
ever-expanding size, B.L. Agro never lost sight of its ultimate goal that of
providing only the highest product quality - and hence set up its own advanced
Later, the company took another stride when being a player in the lone mustard oil
segment, B.L. Agro diversified into Refined Soybean oil and then further to
various blended edible oils. In 2006, B.L. Agro achieved yet another milestone
unparalleled. B.L. Agro understands that eating habits of consumers are very
individualistic and vary from house to house. And in order to make a long term
relationship with the collective base, the company needs to pack Real Customer
Moreover what has brought laurels to B.L. Agro and awarded it a leadership
position is the company's ability to anticipate and adopt to Market Demand Shifts
resulting from either consumer Living Pattern Shifts or any other reason. At B.L.
Agro, change has been one of the most consistent processes. Be it technological
B.L. Agro has always anticipated the changing environment and empowered itself
The most important success driver at B.L. Agro is its ability to offer Consistency
consignment, the products of B.L. Agro carry exactly the same quality and purity
The processes and facilities at the B.L. Agro plant match the highest standards
The Double Filter Process for Mustard Oil ensures that only the purest product is
dispatched from the B.L. Agro plant. The Refining is undertaken by Chemical
Refining process through which flows out the purest form of cooking oil that beats
the best known brands on transparency tests. Moreover, the oil is processed using
the Nitrogen Blanketing process that reduces the loss of nutritional values and
been granted the Blending License thus enabling it to further expand its product
portfolio. With the vast possibilities in Blending, the company is now in a position
to develop many new products and cater to the evolving consumer needs.
Whatever the product and whatever be the process, at B.L. Agro the Purity &
refinery plant, all processes are designed to be automated. Right from the un-
loading of the crude oil tankers to the filling and packaging of oil in various pack-
As a result the established Edible Oil Brands of B.L. Agro are today enjoying
Market Leadership in a vast market and region. The unique taste preference
The company has secured sources for supply of crude oil. The identification of
multiple regions ensures that supplies to B.L. Agro are not affected by climatic
facilities for manufacturing of packaging materials used for its products. This
results not just in controlling the costs and enhancing value but also in maintaining
The company has an Excellent Track Record With the Management experience
of 50 years, B.L. Agro has displayed a consistent and exemplary growth right since
its inception.
B.L. Agro Oils Ltd. possesses India's largest mustard oil packaging facilities.
In-house QC Lab Best equipped & biggest in UP. The company has an in-house
Quality Control Laboratory with a Gas Chromatography that ensures purity, ideal
The company's lab is the biggest and best equipped in the entire state of Uttar
Pradesh.
To further complement its efforts and enhance its performance the company has
established Enterprise Resource Planning (ERP) systems and has obtained ISO
In India the popular cooking mediums include Mustard Oil, Groundnut Oil,
Mustard, Soyabean and Palm Oil (mainly imported) account for over 75% of total
Only around 16% of the households in India consume branded edible oils.
Among branded oils, refined oils account for 60% of consumption and crude oils
Branded edible oils have penetrated 31% of households in urban areas and only
9% in rural areas.
The edible oil sector in India is largely unorganized with only a few organized
players.
Edible oil is sold in the country either in consumer packs (less than 5 lt pack sizes),
Indian edible oil economy is world's fourth largest after USA, China and Brazil
(India accounts for 7% of world oilseeds & oil meal production and 10% of world
2nd largest import bill item for India - favorable government policies for
factors and avoidance of any adulteration) and low-saturated fat cooking mediums.
According to an estimate, the demand for edible oils is expected to increase from
current levels of 11.5 million tones to 15.6 million tones in 2010 and 21.3 million
tones by 2015.
Growth Opportunities
Emergence of branded edible oil as a high growth segment in Indian FMCG
industry.
With a huge proportion of total Indian households still not using branded oils but
displaying continuous shift in their using pattern - from loose unbranded oils to
packed branded oils, the category of branded edible oils has emerged as a high
growth segment in the Indian FMCG industry.
With an excellent record of adapting to the dynamic trends, B.L. Agro Oils Ltd. is
well positioned and preparing itself to play an important role in facilitating this
transition in consumer behavior.
Future Strategy & Growth Plans
Expansion in geographic reach and newer markets - The company has already
extended its distribution network covering almost entire North India and is now
To meet the challenges of growing demands, B.L. Agro is preparing for capacity
The company has an ambitious plan for setting up an Integrated Oil Complex for
available within this complex, the company will be able to provide integrated
In addition to the existing facilities, the proposed complex will include Solvent
Extraction Plant, Rice Bran & Sunflower Refinery and Mustard Crushing
Facilities.
To make its procurement processes smooth and cost effective B.L. Agro oils is
various Port.
Increase in brand power B.L. Agro Oils Ltd. has planned widespread
power.
The company is working to expand its product and brand portfolio through
extension of the existing lines as well as through diversification into other edible
food items.
Through ensuring a substantial market share in the mustard oil as well as other
contribute their bit in the nation building process and work towards the betterment
of the society.
service programs like Blood Donation camps, Plantation Drives, Service for
Theseinclude
Conservation.
Use of only Agriculture Bio-Mass for steam generation; and many more such
measures.
preservative.
Mustard Oil is one of the best cooking oil particular for heart patient because it has
an Omega 3 (MUFA) and 6 Fatty Acid composition (Linolic and alpha Linolic
Acid respectively) in good proposition close to 10:1 rarely found in any other oil.
Bail Kolhu Kachchi Ghani Mustard Oil is the flagship brand of the company. This
is a Grade A Mustard Oil and due to its unique taste and ideal pungency, it enjoys
Delhi.
Bail Kolhu is a clear market leader in most of its distribution territories and
Kolhu also enjoys a very high level of brand recall and brand loyalty amongst a
Balance Lite
this is a fast growing brand that has facilitated the advent of B.L. Agro in the
Vegetable Oils. Having gained instant acceptance in the market, the brand is on a
NewProductDevelopment
In its quest to further expand its operations and reach for larger customer base,
B.L. Agro is in the process of developing ambitious new products. Nourish Delite
First product to be offered under this brand will be Premium Soyabean oil followed
by Premium Mustard Oil. The line will be further expanded to multiple food
products that will even extend beyond edible oils and include products like Atta,
Besan, Pulses on one hand and Packaged Drinking Water on the other. At B.L.
Agro, the vision is to make Nourish Delite India's biggest and most trusted Food
Brand and the company is planning and preparing to make this dream a reality.
Objective of the study:
The main objective of the study is financial analysis of B.L. Agro oils ltd.
are -
To know the sales revenue and growth rate of B.L. Agro oils ltd.
To find out the different future plans of B.L. Agro oils ltd.
Research Methodology:
My project report is secondary data base so the secondary data is collect on the
of data. The sources through which the data is collected such as-
Newspaper, Internet, Balance sheets and some other sources of the company.
analyzing the various research findings collected through the data collection
methods.
In the project I am collecting the data from various website through internet
somewhere.
proper and well organized plan it is impossible to complete the projects and draw
steps necessary to effectively carry out research and the desired sequencing of
these steps.
on secondary data. It is primarily investigation which does not have a rigid design.
his focus as a result of new ideas and relationship among the variables.
Analysis and
Interpretations
Finance and accounts department
Money or capital being a scare as well as crucial resource in the working of any
been planned and controlled in a proper and continuous manner. As among the
most crucial decisions of a firm are those that relate to finance. Finance and
accounts from an integral part of any organization proper and smooth functioning
of this section is very vital for the organization to survive and grow.
financial activities.
Routine finance functions do not require a great managerial ability to carry them
out. They are chiefly and incidental to the effective handling of the material
finance functions.
Finance is lifeblood of business thats why the finance function assumes more
The industrial development of the last 60yrs or so has made finance and financial
A firms success and even survival, its ability and willingness to maintain
extent determined by its financial policies, both past and present. In fact the
financial manger is now being placed at central focal point of modern corporate
management.
and other functions with in an enterprise wherever decisions are made about the
It is often said that now a days, financial management watches and cases various
environment.
Diversification by the firm of various business, markets and products.
Technological changes at high speed & need for more expenditure on R &
D.
Last but not least, the sound financial decisions not only affect the
and liquidity.
Financial statement provides a view of the financial position and operation of the
firm. The focus of financial analysis is on key figures in the financial statement and
RATIOS ANAYLSIS
Ratio analysis is a widely used tool of financial analysis. It may be defined as the
systematic use of ratio to interpret the financial statement so that the strengths &
condition can be determined. Here, the term ratio refers to the numerical or
quantitative relationship between two items/ variables, which are connected with
each other in some manner. Ratio analysis makes the related information
comparable.
In proportion: - in this form the amounts of the two items are being
by another item.
E.g.- Relationship between gross profit & sales may be expressed as 25%
Financial analysis of B. L. Agro oils ltd.
Profitability ratio:-
= 467928770.37/4212526565.03*100
= 11.108
= 395052176.04/3540722900
= 11.157
income
8512212.00
= 467928770.37
586912.00
= 395052176.04
Operating ratio Operating ratio establishes relationship between the cost
of good sold, and the other operating expenses and sales. The other
financial expenses, selling expenses. The costs of goods are also known as
percentage;
= 4004664968.57/4212526565.03
= 0.951
= 3374561592.86/3540722900
= 0.953
= 3858629841.63
= 3235137007
Gross profit ratio Gross profit ratio measures the relationship of gross
= 8.631%
= 4212526565.03
= 3540722900
Net profit ratio: Net profit ratio is also called net profit to sales ratio (profit
the business with sufficient success not only to recover from the revenues of
the period, the cost of merchandise or services, the expenses of operating the
business and the cost of borrowed funds, but also to leave a margin of
reasonable compensation to the owners for providing their capital at risk.
Higher the ratio of net operating profit to sales better is the operational
= 2.269%
= 1.410 %
return.
business.
It measures the profit, which a firm earns on investing a unit of capital the
return on
= 20.691%
= 15.966%
= 969095600.45
= 776208704
= 1329257685.72
= 973913721
(Year 2010-2011) PBIT = PBT + interest
= 127657360.25 + 72863059.81
= 200520420.06
= 123933397
6. Profit After tax to sales The ratio expressed the relationship between
profits
= 3.030
=2.163
Activity Ratio
merchandise turnover ratio or stock velocity ratio. This ratio measures the
compared to the sales effected during the that period. It indicates the
has been sold and replaced during the given period of time.
= 3858629841.63/395374560.4
= 9.759
= 3235137007/280930001.47
= 11.516
which the trade debts are being collected. A firm sells goods on credit and
cash basis. Debtors are expected to be converted into cash over a short
period and thus, included in current assets. Financial analysis employee two
= 42.853
= 24.191
= 146364114.69
= 7.659 times
(Year 2009-2010) = 464037007/420272298
=1.104 times
= 503791035.34
= 420272298
fund plus long-term loans or equal to total assets minus current liabilities.
employed.
= 4.346 times
= 4.561 times
Capital employed = total assets current liabilities
= 969095600.45
= 776208704
= 3.169 times
= 3.635 times
Total assets = fixed assets + current assets + investment
= 1329257685.72
= 973913721
the utilization and effectiveness of the uses of current assets or state over
investment or under investment in current assets. It may be pointed out that over
and under investment in current assets may indirectly affect the solvency of the
concern. Its the ratio between costs of sales and currents assets.
= 4.875 times
= 5.729 times
II. Fixed assets turnover ratio this ratio assumes added significance in the case
= 9.335 times
= 10.066 times
Financial ratio
current ratio. This ratio is an indicator of the firms commitment to meet its
short-term liabilities. Current assets include cash and other assets convertible
into cash during the operating cycle of the business. Current liabilities mean
liabilities payable within a years time. An idle current ratio is 2:1, the ratio
would indicate the less efficient use of funds while a poor current ratio is a
= 2.398: 1
=3.125: 1
98797333.37
= 863953120.61
= 6617977315
Provisions
= 360162085.27
= 197705017
Quick ratio This ratio is also called acid test ratio and liquidity ratio.
inventory hold-ups. For example, if two units have same current ratio but
different liquidity ratio, it indicates over stocking by the concern having low
liquidity ratio as compared to the concern, which has a higher liquidity ratio.
= 0.846: 1
= 1.954: 1
= 304862175.25
= 386319140
Cash ratio This is the ratio between cash and balances to current liabilities.
As such
= 0.026: 1
=0.082:1
Solvency ratio This ratio highlights upon the long-term solvency of the
= 1.358
= 1.345
Debt equity ratio - The debt equity ratio is determined to ascertain the
as external and internal equity ratio. This ratio establishes the relationship
between the internal equities and external equities. If this ratio is 1:1, the
lower than shareholders fund and in this case financial position will be
=1.837
=1.881
a)Table form
b)Graphical
Based on the above financial analysis it is clear that Quick ratio of B.L.
Agro oils ltd is more than 1 i.e.1.594 in 2009-2010 and less than in.846 in
2015-2016.
Debt-equity ratio of B.L. Agro oils ltd is very less which means that B.L.
Agro oils ltd has not been aggressive in financial its growth with debt. The
In B.L. Agro oils ltd collection period is very quick i.e. 9days.
Through the financial analysis it is find that the return on capital employed
is 20.691%
power.
Solvent Extraction Plant, Rice Bran & Sunflower Refinery and Mustard
Crushing Facilities.
To make its procurement processes smooth and cost effective B.L. Agro oils
segment.
The company is working to expand its product and brand portfolio through
already extended its distribution network covering almost entire North India
B.L. Agro Oils Ltd. possesses India's largest mustard oil packaging facilities.
In-house QC Lab Best equipped & biggest in UP. The company has an in-
purity, ideal blends and PFA certified quality of all B.L. Agro products.
The company's lab is the biggest and best equipped in the entire state of
Uttar Pradesh.
The processes and facilities at the B.L. Agro plant match the highest
standards The Double Filter Process for Mustard Oil ensures that only the
flows out the purest form of cooking oil that beats the best known brands on
Blanketing process that reduces the loss of nutritional values and ensures
8.40% .
The net profit ratio is find out of B.L. agro oils ltd in 2009-2010 is 1.421%
BIBLIOGRAPHY
BOOKS/MAGAZINES:
Economic Times.
Business World
WEBSITES:
http://www.google.com
http://www.blagro.org