2019 - Balaji Wafers Pvt. LTD

Project Report
On
BALAJI WAFERS PVT. LTD.
Submitted to
Institute Code: 734
Institute Name
Marwadi Education Foundations’ Group of Institutions
In partial Fulfillment of the Requirement of the award of the degree of

Bachelor of Management (BM)
(Semester VI of Master of Management – MAM)
Under
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide Company Guide
Mrs. Monika Mehta Avinash Akbari
Ass. Prof. of Management Marketing Manager
Submitted By
Neha K. Chotaliya
(167340585037)
MAM – Semester - VI
Gujarat Technological University

Ahmadabad
April 2019
COMPANY CERTIFICATE
i
INSTITUTE CERTIFICATE
 Put this page blank (One page per student)

 Guide will issue it once he/she will approve your project
 Guide will provide you hard copy of certificate. At the time of binding,
insert that certificate and remove this blank page.
ii
PREFACE
Management is an ongoing process and most happening thing in life.

This process even becomes important when we are talking about the real
business operation.
Retailers’ attitude is one of the most crucial areas of management.

Moreover, being a namkeen food industry, we had an exposure to the
retailers’ attitude of food processing industry. As we know, retailers attitude
vary by industry to industry. Each industry has its unique factors for retailer’s
attitude.
Thus, I have tried best to put my efforts in the form of this report. I
welcome the suggestions and insights, which can enhance the quality of
report.
iii
ACKNOWLEDGEMENT
It is always a pleasure to remind the fine people in the Marwadi

University for their sincere guidance I received to uphold my managerial skills
and leadership skills in management.
First of all, thanks to my parents for giving me encouragement,

enthusiasm and invaluable assistance to me. Without all this, I might not be
able to complete this project properly.
Second of all, I would like to thanks Dr. Sunil Kumar Jakhoria, Dean of
management department for give us the opportunity to study the company
and make a report of it.
Thirdly, I also want to express my deepest thanks to Dr. Alpesh Gajera,

Program Coordinator in management department as a good supportive
person. Besides he helped me a lot in dealing with this project and gave us
right direction when we got confusion or trouble.
Moreover, I would like to thank Mrs. Monika Mehta, faculty of

management for extending their friendship towards me and gave us liberty to
do work in a pleasure environment.
Thanks also to BALAJI WAFERS who allow me to do project report for

it and gave me support to make my project better. Big thanks to Mr. Avinash
Akbari who guided me towards the company study and gave permission to
visit production unit at Vajdi, Rajkot.
Finally, I apologize all other unnamed who helped me in various ways

to have a good training.
iv
STUDENT DECLARATION
I, Neha Chotaliya, hereby declare that the report for “Project” entitled “BALAJI
WAFERS PVT. LTD.” is a result of my own work and my indebtedness to
other work publications, references, if any, have been duly acknowledged.
Place: Rajkot
_____________________
Date: _____/_____/2019 Name: Neha Chotaliya
Enrolment No.:- 167340585037
v
CERTIFICATE OF EXAMINER
This is to certify that project work embodied in this report entitled

_________________
____________________________________________________________w
as carried out by Student Name:
_______________________________________ Enrollment no.
________________________of Marwadi Education Foundation’s Group
of Institutions (Faculty of Management) (734).
The report is approved / not approved.
Comments of External Examiner:
This report is for the partial fulfillment of the requirement of the award of the
degree of Master of Business Administration offered by Gujarat Technological
University.
----------------------------------
(Examiner’s Sign)
Name of Examiner:
Institute Name:
Institute Code:
Date: ____/____/2019
Place:
vi
INDEX
SR. PARTICULARS PAGE NO.

NO.
Part – 1 Industry Study
1 Growth and Evolution of Industry in India 1
2 Product Profile 8
3 Demand determination of the Industry 14
4 Players in the Industry 21
5 Distribution channel in the Industry 29
6 Key Issues and Current Trends 36
7 PESTEL Analysis 43
8 Financial Analysis of Chosen Industry 46
9 Industry Analysis : Michel Porter’s Five Force Model 50
10 Future outlook 53
Part – 2 Company Study
11 Company Information and Product Profile 58
12 Functional Departments 76
13 SWOT / TOWS Analysis 83
14 Future Outlook / Conclusion / Suggestion 88
vii
LIST OF CHARTS
TABLE PARTICULARS PG. NO.

NO.
1 Sales 22
2 Financial Analysis of Snack Food Industry 51
3 Organizationa 66
viii
PART – I
INDUSTRY STUDY
ix
CHAPTER – 1
GROWTH AND EVOLUTION OF INDUSTRY IN INDIA
1
GROWTH AND EVOLUTION OF INDUSTRY IN INDIA
Sales in the snacking category have grown more than six-fold from
8,000 crores in 2004 to 47,000 crores in 2013.
India’s tier 1 towns, the rest of urban and rural areas offer the most
potential in terms of growth and opportunity when it comes to snacking.
Products that talk about strong taste and texture cues and woven with
appropriate emotional insight do better than those that don’t.
Namkeen is the Hindi word used to describe a savory flavor. The word
namkeen is derived from the word Namak (meaning salt). Namkeen is also
used as a generic term to describe savory snack foods. Both black and
regular white salt are used in Indian cooking, which gives it the salty flavor
many people like. Other namkeen snacks common in Indian cuisine include
khaara, farsan, chivda, sav, chips and bhujiya. Namkeen of Indore and
Ratlam are two snacks that are very well known for their tastes.
As foods category is growing in India, several food companies are

capturing salty snacks market. Around 1,000 snack items are sold in India
spanning various tastes, forms, textures, aromas, bases, sizes, shapes and
fillings. Some 300 types of savories are sold in this country and overall snack
product market (inclusive of sweetmeats) is estimated at Rs.25, 000 crore.
The branded segment is increasing at the rate of 25 per cent/annum whereas
the entire market is growing at the rate of 7 per cent.
2
Namkeen is a product which is essentially known for three important things:
a) Taste
b) Quality
c) Variation
The Indian Food Industry is one of the fastest growing segments in

Indian economy. Within the food sector itself, the RTE including Namkeen &
Mithia holds the biggest share. This segment has the maximum value
addition, not just in monetary terms but also at adding shelf life to the product
or ensuring that there is reach from Farm to Fork.
Now Namkeen is well known to each and every part of our geography.
South and North East part of India has good demand of Namkeen because of
mix culture. Due to employment and business opportunities, north and west
side people spread over the whole country, settled along with food habits and
culture. Now people are more inclined towards Namkeen and potato chips.
Even North East region is also having different requirement of Indian snacks,
namkeens and pasta.”
Namkeen consumption is high in Western and Northern states of India

and even Southern states have picked up on consumption rate. Also the trend
has shifted to using modern technologies from traditional methods. Products
like bhujia, chana-chur, and dal month are well known in India and overseas
as well. Disposable income mixed with a fast-paced lifestyle has led to an
extensive growth in this sector. From tea time to fulfilling the small hunger,
snacks and namkeens are the best choices and in India, it has the most
demand.
Snacking is considered as the routine habit in India between meals or

in place of a meal. Snack food generally comprises ready-to-eat mixes, chips,
namkeen and other light processed foods. The market for such snacks has
undergone significant change over the past two decades with the entry of
various multi-national and regional players along with their distinctive brands
and flavors. The Indian snacks market has witnessed a steady growth with the
shift in consumption pattern. This increasing consumption of snacks is
influenced by various factors. Increasing per capita income of people living in
urban, semi-urban and rural regions of the country is among the major factors
driving consumption of snacks.
3
Namkeen is the dominant segment, followed by the Extruded Snacks.
The market is also segmented into organized and unorganized sector of
which unorganized is the dominant market. The India Snacks Market will be
more than INR 1 Billion by the end of 2024.
The future of India Snacks Market can be judged from the fact that this
industry is expected to grow with double digit CAGR for the time frame of
2018 to 2024. India snacks market is dived between organized players and
unorganized market. At present Unorganized market is dominating the India
snacks market. But this scenario is expected to change during the forecast
period of 2018-2024. India Snacks Market is growing due to following factors
Lifestyle Changes, Rising Urbanization, Growing Middle Class Population,
Local Availability and Availability of Snacks in Small Package Size, Low Price
and Company’s Strategies to focus on regional taste.
There are a large number of players working in the Indian snacks

market. Their presence is limited within a town, city or a particular area. They
do not think too much for expansion. As a results, their main focus to develop
snacks items according to the consumers taste in a particular area. This helps
them to be popular in that region. Also their products are low priced compared
to organized players. Namkeen has the Highest Market Share in India Snacks
Market. At present, in both organized and unorganized market, Namkeen is
the leading segment.
Average annual per capita consumption of commercial snacks is 500g.

Consumers from Western India are the leading snack consumers, followed by
the North. An aspect that leads to quick movement of ethnic snacks is the
consumption convenience or consumes anywhere-anytime factor.
Snacks/Namkeen can be eaten with cocktails, during teatime, as props with
regular meals like breakfast or as starters with dinner.
Due to advancements in technology related to cutting, slicing and

grinding in food processing equipment, many food manufacturers have
replaced their older machines with newer ones that are more efficient and
boost their bottom line through higher throughput. Equipment categories
include chillers, dryers, feeders, fryers, grinders, homogenizers, mixers,
roasters, separators, slicers and ovens. These machines require cleanliness,
gentle handling and precise control of temperatures, pressures, treatment
times and other process parameters.
4
Agro and Food Processing magazine got in touch with some industry
players who cater to the snacks and namkeen segment. They provided their
views on trends and challenges that surround this market.
PepsiCo leads the western snacks market, and, together with other
prominent players in this segment (ITC, Balaji, Parle Products, Prakash
Snacks, and Haldiram’s), holds a share in excess of 70% of the market. In the
traditional snacks space, Haldiram’s and the regional player, Balaji Namkeen,
together account for over 50%. The rest of the market is fragmented, and
understandably so, given that the market is driven by strong regional tastes
and preferences. There are several reasons which have led to the growth of
the branded salty snacks markets. Some of these are mentioned below:
Changing consumer lifestyles and consumption patterns
The increasing urbanization, growth in number of double income
households, and rising time poverty has resulted in changing consumption
patterns, especially in the food category. This has fueled the demand for
convenience foods as consumers no longer have either the knowhow or the
time to make these products at home. At the same time, the spurt in
disposable incomes has resulted in the increased exploration of the various
snack brands available in the market, whether traditional or western.
Consumers are also trading up from unbranded to branded snacks, especially
in the traditional snacks segment, given the heightened concerns for quality
and the greater availability of branded options. This has resulted in branded
snacks becoming an all-time food for the munching needs of consumers.
Growing consumer base
Snacking is not just about children or youth. Snacking between meals
is a habitual occurrence in the day-to-day lives of most Indian consumers.
Further, snacks no longer cater to a single consumer segment, but instead
have a diverse consumer appeal and are increasingly being consumed across
different age groups. Branded snacks are also fast penetrating the semi-urban
and rural space which has been traditionally dominated by unbranded or
homemade products. As a result, the market has witnessed a high growth
trajectory and various new players are foraying into the market while the
existing ones are expanding to cash in on its growth potential.
More variants and options
There was a time when branded salty snacks were mostly potato chips.
However, players have innovated over time to offer new products like
extruded snacks besides expanding their traditional snacks offerings, e.g.
Murukku, Chakoli, Mathri, Gathiya, Samosas, etc. which has seen several
consumers upgrade from the unbranded market to branded products. Also,
given the increasing concerns surrounding ‘unhealthy’ snacking, players have
positioned brands and products around ‘health’, e.g. baked, roasted,
5
multigrain, low fat, etc. to reach out to the health-conscious segments. This
has helped them target a larger consumer base across the country.
Greater availability and affordability

Branded snacks are now easily available across both modern and
traditional retail formats, from supermarkets and mom-and-pop stores to small
tea stalls, office canteens, paanwalas, etc. Most brands are available in
multiple pack sizes including small ones at attractive price points (INR 5, 10,
etc.) leading to higher affordability and increased category presence and more
product trials.
While the branded market was created and led by western snacks,
both western and traditional snacks today hold a nearly equal share,
indicating the higher growth of branded traditional snacks. However, this does
not imply that the growth has come at the cost of western snacks; it is more
due to the unbranded market being converted to a branded traditional market.
Another trend which is true for traditional snacks is that while our palates may
change every 200 km, and regional preferences are strong, there has been an
increasing democratization of preferences, and many hitherto regional snack
items have found nationwide acceptance, e.g. banana chips.
Over the past few years, the market has witnessed a slew of activities,
the emergence of new players, the expansion of snacks portfolio through
continuous product innovations, aggressive marketing campaigns to establish
consumer connect, shift in consumption with increasing demand for
convenience, etc. Going forward, the prospects for the branded snacks
market remain bright. However, players will need to focus continuously on
product innovation to combat competition, both from within this category
(branded as well as unbranded) as well as from other categories. While
consumers are upgrading to branded products, the unbranded market
remains huge in size. Also, there are still hundreds of traditional snack
categories for which branded options do not exist, which presents both an
opportunity as well as a threat.
Additionally, rising health consciousness owing to sedentary lifestyles

and the increasing incidence of lifestyle diseases in urban India has resulted
in a demand for ‘healthy’ snacks. This is only expected to increase in the
future and presents lucrative opportunities for both existing as well as new
players. The challenge will be to achieve the right balance of taste, health,
and price.
6
Distribution remains the key to any brand; the challenge for players will
be to strengthen their distribution networks and expand their retail reach. For
regional brands, growing outside their ‘home turf’ and connecting with
consumers in other regions will be a challenge.
Players will need to be prudent and understand the regional palate and
pulse. Moreover, maintaining product price points and margins is crucial given
the fluctuations in raw material costs and the investment in manufacturing,
limiting the creation of economies of scale. Despite these challenges, branded
salty snacks will remain an attractive market opportunity in times to come. It
will be interesting to see how the competition in this market pans out over the
next few years.
Packaged food industry comprises bakery products, biscuits, ready-to-

eat snacks, chips, namkeens (salted snacks and savories), etc. Packaged
food industry in India has witnessed an exponential growth over past few
years. The market size of confectioneries is estimated at Rs.5,146 crore and
that of biscuits is estimated at Rs.24,000 crore.
Furthermore, the market size of ready-to-eat snacks and namkeens is

estimated at more than Rs.50,000 crore; having grown at a compounded
annual growth rate (CAGR) of around 13% since 1998 till 2014 and expected
to grow at a CAGR of 22% during 2014-2019. Major growth drivers for the
segment are attributed to changing lifestyle, growing urbanization, increase in
nuclear families and rise in disposable income.
Other factors which have contributed to its growth include product

innovations, strong marketing initiatives and low cost pricing strategies
making products more affordable for consumers (starting from Rs.5 per
packet). The sale of snack food category (ready-to-eat packed foods like
chips, extracted food, etc.) alone have grown more than six-fold from
Rs.8,000 crore in 2004 to more than Rs.50,000 crore in 2014.
7
CHAPTER – 2
PRODUCT PROFILE
8
PRODUCT PROFILE
Extruded Snacks Brands
 PepsiCo (Kurkure, Cheetos)
 DFM Foods CRAX Corn Rings, Natkhat
9
 Balaji Wafers Wheels masala, wheels tomato, Pop Rings Masala,
Chataka Patka.
 Pratap Snacks (Yellow Diamond, Rings, Chulbule, Puff Fungroo)
Chips brands
 PepsiCo (Lay's, Uncle Chips)
10
 Haldirams (Classic Salted, Pudina Treat, Kettle Chips, Aloo Masala,
Papri Chaat)
 Bikanervals Bikano (Chatak Masala, Tangy Tomato, Simply Salted,

Yummy Cream, Wafers)
 Balaji Wafers (Simply Salted, Magic Masala, Pizzy Masala, Tomato

Masti)
11
Namkeen Brands
 PepsiCo Lehar
 Haldirams (Khatta Meetha, Moong Dal, Mixture, All in One, Aloo

Bhujia, Badam Lachcha, Tasty Peanuts, Shashi Mixture, Navratan
Mixture)
 Bikanervala (Aloo Bhujia, Badam Lachcha, Tasty Peanuts, Shashi

Mixture, Navratan Mixture)
12
 DFM Foods (Mast Mattar, Kaju Mixture, Navratan, Aloo Bhujia)
 Balaji Wafers (Mung Dal, Chana Dal, Aloo Sev, Khatta Mitha, Nibu
Chatka.
 Pratap Snacks (Chana Masala, Peanuts, Classic Peeanuts, Falhari

Chivda, Chana Dal
13
CHAPTER – 3
DEMAND DETERMINATION OF INDIAN NAMKEEN INDUSTRY
14
DEMAND DETERMINATION OF INDIAN NAMKEEN INDUSTRY
The demand changes as a result of changes in price, other factors

determining it being held constant. We shall explain below in detail how these
other factors determine market demand for a commodity.
These other factors determine the position or level of demand curve of

a commodity.
It may be noted that when there is a change in these non-price factors, the
whole curve shifts rightward or leftward as the case may be. The following
factors determine market demand for a commodity.
1. Tastes and Preferences of the Consumers:
An important factor which determines the demand for a good is the

tastes and preferences of the consumers for it. A good for which consumers’
tastes and preferences are greater, its demand would be large and its
demand curve will therefore lie at a higher level. People’s tastes and
preferences for various goods often change and as a result there is change in
demand for them.
The changes in demand for various goods occur due to the changes in
fashion and also due to the pressure of advertisements by the manufacturers
and sellers of different products. On the contrary, when certain goods go out
of fashion or people’s tastes and preferences no longer remain favorable to
them, the demand for them decreases.
Balaji Wafers has expanded its business by adding more flavors and
variations in its products.
15
For example:
1. Crunchex
2. Yumstix
3. Pizzy
4. Pop rings
5. Chataka Pataka (Chinese Chaska)
All these new arrivals allure people to buy it and that’s the reason the
demand for new products will raise.
2. Income of the People:
The demand for goods also depends upon the incomes of the people.
The greater the incomes of the people, the greater will be their demand for
goods. In drawing the demand schedule or the demand curve for a good we
take income of the people as given and constant. When as a result of the rise
in the income of the people, the demand increases, the whole of the demand
curve shifts upward and vice versa.
The greater income means the greater purchasing power. Therefore,

when incomes of the people increase, they can afford to buy more. It is
because of this reason that increase in income has a positive effect on the
demand for a good.
When the incomes of the people fall, they would demand less of a
good and as a result the demand curve will shift downward.
Balaji Wafers has all its products at affordable prices which will give
benefit to rural area as well us urban are. The more your product has quality
over price, the more it will have its demand in market and that’s the reason
Balaji Wafers is expanding its business through the nation and the world too.
16
3. Advertisement Expenditure:
Advertisement expenditure made by a firm to promote the sales of its
product is an important factor determining demand for a product, especially of
the product of the firm which gives advertisements. The purpose of
advertisement is to influence the consumers in favour of a product.
Advertisements are given in various media such as newspapers, radio, and
television. Advertisements for goods are repeated several times so that
consumers are convinced about their superior quality. When advertisements
prove successful they cause an increase in the demand for the product.
5. The Number of Consumers in the Market:

The marketdemandfor a good is obtained by adding up the individual
demands of the present as well as prospective consumers of a good at
various possible prices. The greater the number of consumers of a good, the
greater the market demand for it.
Now, the question arises on what factors the number of consumers for a good
depends. If the consumers substitute one good for another, then the number
of consumers for the good which has been substituted by the other will
decline and for the good which has been used in place of the others, the
number of consumers will increase.
Besides, when the seller of a good succeeds in finding out new markets for
his good and as a result the market for his good expands the number of
consumers for that good will increase. Another important cause for the
increase in the number of consumers is the growth in population. For
instance, in India the demand for many essential goods, especially food
grains, has increased because of the increase in the population of the country
and the resultant increase in the number of consumers for them.
6. Consumers’ Expectations with Regard to Future Prices:

Another factor which influences the demand for goods is consumers’
expectations with regard to future prices of the goods. If due to some reason,
consumers expect that in the near future prices of the goods would rise, then
in the present they would demand greater quantities of the goods so that in
17
the future they should not have to pay higher prices. Similarly, when the
consumers expect that in the future the prices of goods will fall, then in the
present they will postpone a part of the consumption of goods with the result
that their present demand for goods will decrease.
Increase in Demand and Shifts in Demand Curve:

When demand changes due to the factors other than price, there is a shift in
the whole demand curve. As mentioned above, apart from price, demand for a
commodity is determined by incomes of the consumers, his tastes and
preferences, prices of related goods. Thus, when there is any change in these
factors, it will cause a shift in demand curve.
For example, if incomes of the consumers increase, say due to the hike in
their wages and salaries or due to the grant of dearness allowance, they will
demand more of a good, say cloth, at each price. This will cause a shift in the
demand curve to the right. Similarly, if preferences of the people for a
commodity, say colour TV, become greater, their demand for colour TV will
increase, that is, the demand curve will shift to the right and, therefore, at
each price they will demand more colour TV.
The other important factor which can cause an increase in demand for a
commodity is the expectations about future prices. If people expect that price
of a commodity is likely to go up in future, they will try to purchase the
commodity, especially a durable one, in the current period which will boost the
current demand for the goods and cause a shift in the demand curve to the
right.
As seen above, the prices of related commodities such as substitutes and

complements can also change the demand for a commodity. For example, if
the price of coffee rises other factors remaining the constant, this will cause
the demand for tea, a substitute for coffee, to increase and its demand curve
to shift to the right.
Decrease in Demand and Shift in the Demand Curve:

If there are adverse changes in the factors influencing demand, it will lead to
the decrease in demand causing a shift in the demand curve. For example, if
due to inadequate rainfall agricultural production in a year declines this will
cause a fall in the incomes of the farmers. This fall incomes of the farmers will
18
cause a decrease in the demand for industrial products, say cloth, and will
result in a shift in the demand curve to the left.
Similarly, change in preferences for commodities can also affect the demand.
For example, when colour TVs came to India people’s greater preference for
them led to the increase in their demand. But this brought about decrease in
demand for black and white TVs causing leftward shift in demand curve for
these black and white TVs.
The decrease in demand does not occur due to the rise in price but due to the
changes in other determinants of demand. Decrease in demand for a
commodity may occur due to the fall in the prices of its substitutes, rise in the
prices of complements of that commodity and if the people expect that price of
a good will fall in future.
The food industry moves quickly and there is increasing pressure for industry
leaders to keep up with the changing trends. In the past decade, the natural
progression of a new product from introduction to mass or wholesale levels
has sped up from five or six years to now potentially one or two years.
According to this article, there is pressure for new products to meet the ever-
shifting consumer interest in even quicker timelines, which means
distinguishing between short-term crazes and long-term trends.
There are a few factors that can help industry leaders better evaluate and
forecast upcoming trends in order to maximize their returns:
 How frequently the product is consumed – a larger potential customer base
will lead to a quicker tipping point, or moment when the trend takes off.
 Cultural demand – the amount of other emerging trends products relate to
will influence growth and success.
 Purchase intent – how much the consumer has to change their behavior in
order to experience the product and immediate benefits.
 Innovation – keep in mind the number and rate of new products launched
in your category to get a better idea of the overall opportunity and
competition.
 Media – positive or negative social and traditional media exposure can
influence product potential.
 Supply chain – before expanding and promoting a product, the necessary
infrastructure has to be in place to meet the increased demand.
 Research – products are more likely to succeed when based on scientific
studies, and specifically studies with a high degree of consensus, if the
information is available quickly.
19
 Industry regulations – the amount of clarity and risk involved in launching
and marketing potential projects will influence success.
Manufacturers looking to capitalize on upcoming trends must make educated
decisions very quickly based on the information at hand. If you need help
staying ahead of the trends in your industry.
20
CHAPTER – 4
PLAYERS IN THE INDUSTRY
21
PLAYERS IN THE INDUSTRY
The American Marketing Association describes competition as ‘The

rivalry among sellers trying to achieve such goals as increasing profits, market
share and sales volume by varying the elements of marketing mix’.
It is based on the number of players.
Haldiram’s namkeen
Haldiram's is a major Indian sweets and snacks manufacturer based

out of Delhi and Nagpur. The Company has manufacturing plants in a wide
variety of locations such as,
Nagpur
22
New Delhi
Kolkata
Patna
Lucknow
Noida
Delhi
Gopal Namkeen
Gopal Snacks Pvt. Ltd., Established in 1974 at Rajkot in Gujarat, is

leading Manufacturer of Sweets & Namkeen, Snacks in India. Gopal Snacks
Pvt. Ltd. is one of Trade India's verified and trusted sellers of listed products.
With their extensive experience of supplying and trading Sing Bhujiya
Namkeen, Gopal Snacks Pvt. Ltd. has made a reputed name for themselves
in the market with high quality Sing Bhujiya Namkeen, Chiki Snacks, Moong
Dal Namkeen etc. Focusing on a customer centric approach, Gopal Snacks
Pvt. Ltd. has a pan-India presence and caters to a huge consumer base
throughout the country. Buy Sweets & Namkeen in bulk from Gopal Snacks
Pvt. Ltd. at Trade India quality-assured products.
23
Avadh Namkeen
Avadh Namkeen is the one of the most femous company of "Namkeen"

in All India and in gujarat.The success of the company is goes to the hard
work, diligence and Venture of Mr. Rajesh Patel. In the year of 2012 we
stared a fully automatic plane with new packing and brand name with the best
quality. With test, purity, transparent administration, customer oriented policy
and Good Behavior Company become Reach to Number One.
Lays Wafers
Lay's is the name of a brand for a number of potato chip varieties, as

well as the name of the company that founded the chip brand in the U.S. in
1932. It has also been called Frito-Lay with Fritos. Lay's has been owned
by PepsiCo through Frito-Lay since 1965.
24
Samrat’s Namkeen
Samrat Namkeen manufactures and provides snack products such as

flavored namkeens. Samrat Namkeen's headquarters is located in
Ahmadabad, Gujarat. Samrat Namkeen generates $149.2K in revenue per
employee Samrat Namkeen's main competitors are Euro India Fresh Foods,
Vimal Namkeen and Iscon Balaji Foods.
The Green Snack

The Green Snack's headquarters is in Mumbai, Maharashtra. The
Green Snack has revenue of $3.8M, and 41 employees. The Green Snack
has raised a total of $500K in funding. The Green Snack's main competitors
are UrthBox, NatureBox and Nourish Snacks. As of March 2019, The Green
Snack has 6.9K fans on Facebook and 1.5K followers on Twitter.
Euro India Fresh Foods
Euro India is a food manufacturer that packages and distributes chips,

namkeens, faralis, extruded snacks and beverages. Euro India Fresh Foods’
headquarters is located in surat, Gujarat. Euro India Fresh Foods generates
$86.1K in revenue per employee Euro India Fresh Foods’ top competitor is
Fruits, led by Bharat Kulkarni, who is their Co-Founder & CEO. Euro India
Fresh Foods has 246 followers on Owler
Iscon Balaji Foods
Iscon Balaji Foods is a producer and wholesale distributor of potato

related snacks. Iscon Balaji Foods’ headquarters is located in Ahmadabad,
Gujarat. Iscon Balaji Foods generates $190.5K in revenue per employee.
Competitive Analysis is the strategy to identify opportunities and threats. It

defines how a firm is doing with respect to its competitors.
25
The link between Customer, Competition and Company
Kenichi Ohmae 3C model states that –‘Only by integrating the three C’s,
sustained competitive advantage can exist.
 For a company the customer (current and potential) requirements should be a

priority. It should be in touch with the needs and trends. Customers exercise
choices.
 A company or corporation needs to identify skills, assets and culture to beat
the current and upcoming competition.
 It is essential for a firm to differentiate its offerings and values from that of its
competitors operating in the same market. Competition is divided into two
types-
1. Direct- When the competitor provides exactly the same part of customer
value.
2. Indirect- When the value provided is somewhat similar, not the replica.
Coming to the Indian Snack Food industry, there were initially two players-
Haldiram and Uncle Chips manufacturer, Amrit Argo. With PepsiCo entering
in the year 1989, the scene changed.
Currently, Indian Snack Food is an industry worth Rs. 9400 crore. Largely
dominated by unorganized sector the industry has shown much growth with
the entry of the national and international players. They have acquired smaller
food companies to gain market share (Example- Unilever acquired Best
Foods), add a product line, solidify and strengthen their current product lines.
What fuelled the growth-?
 The increase in the income of the consumers, hence spending powers

 The change in lifestyle
26
 Intense marketing, creating awareness and attracting customers by breaking
the clutter
The following are the main players in the Indian Chips Industry-
1. PepsiCo(Lays, Uncle chips)

2. Balaji Wafers Pvt Ltd (Balaji Wafers)
3. ITC(Bingo)
4. Parle (Parle Wafers)
Lay’s chips faces direct competition from all mentioned above. Moreover, the
local chips market gives a tough competition to the product.
Indirect competitors include the Haldiram Bhujiya, Lehar Namkeen, and other
ready to eat snacks.
Lay’s still hold the market leader position with 40% market share, followed by
Balaji Wafers at 19.7%.
27
Competitive advantage-
 Well developed mix- Great tasting product innovations

 Elaborate distribution channel
 Loud and extensive marketing programs
28
CHAPTER – 5
DISTRIBUTION CHANNEL IN THE INDUSTRY
29
DISTRIBUTION CHANNEL IN THE INDUSTRY
Channel of distribution can be defined as, “The marketing process in
which goods and services are transferred from producers to consumers”.
We can define formally the distribution channel as the set of marketing
actives involved in the movement of the flow of goods and services from the
primary produces to ultimate customers.
Distribution decisions
Marketing channels are used for the distribution of a company’s
product. These are designed in a way that the gap between the producer and
the end user becomes smooth and easy delivery is possible.
Marketing channel for any company will have a definite flow in which
the product or service will flow through a set number of intermediaries. A
proper plan is undertaken for designing, managing and controlling a channel.
Channel-Design Decisions
1. Analyzing Customer Needs and Wants – this is the most important step as
the entire channel depends on the customer’s needs and wants. A company
before setting up its channel will first survey the elements attached to its
customers. The factors can be the lot size in which the customer wants to
place an order, waiting and delivery time, etc.
2. Establishing Objectives and Constraints – here the company sets its own
objectives in terms of sales expected, costs associated to the channel, and
the support system that will be required for making the channel possible and
working. It looks at the larger environment in which the company functions.
Government policies and the demographics are checked so that the channel
set up is flawless.
3. Identifying Major Channel Alternatives – here the various channels like the
agents, distributors, dealers, etc. are evaluated in accordance to their
strengths and weaknesses. Here the types of intermediaries, the number of
intermediaries and the terms and responsibilities of each are checked.
4. Evaluating Major Channel Alternatives – Here the economic, control and
adaptive criteria are checked so that the best channel can be selected for
company’s distribution channel. Economically the company checks whether it
is able to cover up the break even costs or not. If not then changes are made
accordingly. Also the company tries to adapt with the surrounding
environment and accordingly changes are made to the channel type.
The company also takes care that the control is kept to its management and
does not slide down to the intermediaries.
30
Balaji Wafers has done its research on customer needs and demands in a
way that the distribution channel is set according to the company objectives
keeping in mind the surrounding environmental structure.
Its channel starts from procuring raw material and goes through
intermediaries and facilitators so that the product reaches its target market on
time.
Channel Management Decisions
1. Selecting Channel Members – the company does extensive research on the
intermediary’s background, its working culture, delivery time, profit record, its
clients, etc. This helps them selecting the apt intermediaries for their product.
2. Training and Motivating Channel Members – Carefully implemented training
and motivational programmes help the intermediaries to cope up with the
changing economy and environment. This keeps them regularly motivated for
providing the best services to their client.
3. Evaluating Channel Members – The Company must, time to time, evaluate
the intermediaries’ performance against company standards like sales quota
attainment, average inventory levels, customer delivery time, treatment of
damaged and lost goods, etc. This procedure helps company keep a
performance track of their intermediaries and the company can make changes
if the functioning is not proper.
4. Modifying Channel Design and Arrangements – every channel strategy has
to be modified in the entire PLC. No channel will remain constant and will
have to be changed with the changing environment and customer demands.
Balaji wafers, has distribution as its strongest point in today’s business
scenario. Keeping this in mind, it has appointed a team which looks after the
selection, training, evaluating and modifying the channels. This happens on a
regular basis and is done with utmost care so that it doesn’t lose its market
share, which is more than its competitors.
Channel Control Decisions

Channel control is the most important aspect of the entire distribution
system. The company has to take note of the control over its product and the
intermediaries functioning inside the distribution channel. This will help
company to have its own say in the distribution process.
Losing control on the distribution channel will lead to losing out on its
management and profits also. There are times when there arises a channel
31
conflict which may be destructive for the channel and for the company in the
long term.
Balaji Wafers has effectively controlled its channel. It has its own distribution
agency which takes care of the management of the overall distribution
channel. This helps the company keep a check on intermediaries’
performance and also have a say in the changes to be made in the channel.
LEVEL OF CHANNEL OF DISTRIBUTION
The number of channel level can characterize the marketing channel.

Each intermediary that performs work in bringing the products to the final
buyer constitutes a channel level. Since the producer and the final customer
both perform work, they are part of every channel. There are following type of
channel of distribution.
Zero level
A zero level channel is also called the direct marketing channel it

consists of a manufacturer, selling directly to the final consumer. The major
zero level channels are door to door sales, home parties, mail order etc. it
depends on the type and nature of product and the requirement of the
customer its diagram is as follows:
Manufacturer
Customers
One level
A one level channel contains one selling intermediary such as a retailer

as most of the manufacturer uses only the retailing system. In this distribution
32
system, the manufacturer supplies goods to the retailer only with sufficient
guidance relating to the use of product and so on. Its diagram is as follows:-
Manufacturer
Retailer
Customers
Two levels
A two level channel consist of two intermediaries. In consumer

markets, they are typically a dealer wholesaler and retailer, when the
manufacturer wants to cover a comparatively wider area of markets they use
this channel of distribution. Its diagram is as follows:-
Manufacturer
Dealer
Retailer
Customers
33
Three levels
A three levels channel contains three intermediaries. In a company

which wants to , distribute ,its product in a nationalized way \ or in a national
level market they have to apply this channel of distribution under such
circumstance s dealers are appointed in various regions, subsequently the
product is moved to the customers through retailers. Its diagram is as
follows:-
Manufacturer
Dealer
Sub Dealer
Retailer
Customers
Multi level
Multinational companies which are having their distribution system in

several countries, have to follow a multi channel. It may include four or more
intermediaries make the product and reach to the customers. This method is
convenient when; the customers are evolved in a huge region its diagram is
as follows:-
34
Manufacturer
Wholesaler
Dealer
Sub Dealer
Retailer
Customers
So far as Balaji Wafers is concerned the product of this company is

food product. They adopt a multilevel distribution system, which is as follows:-
Company
Carry and Forward department
Distribution
Dealers
Retailers
Consumers
The company is having four distributors and 225 dealers.
35
CHAPTER – 6
KEY ISSUES AND CURRENT TRENDS
36
KEY ISSUES AND CURRENT TRENDS
Issues
The market for savory snacks in India holds tremendous growth

potential, though there always remain few challenges that still need to
be addressed on the way forward. “Since, it’s the healthy snacks we are
dealing in, we shy off using preservatives, etc., which makes the shelf
life of the product really short. Also, we need to keep the product
healthy as well as tasty. In order to sustain, it is important for products
in this market to be balanced, wholesome, of good quality without
compromising on the taste of snacks. Fads will come and go, but
nutrition and taste will always go a long way,” maintains NehaThakker
and Mahima Anand.
The snacks food industry in India is highly competitive and

evolving. Consumers are always tempted to shift their choices and
preferences whenever new products are launched or various marketing
and pricing campaigns of different brands are introduced. Arun Prakash
says, “India’s snack food market is growing at 25 percent CAGR,
according to industry sources. While presently, unorganized market is
dominating this segment, this scenario is expected to change during the
forecast period of 2018-2024.”
We kick off our Health and Wellness Special with a dozy: in spite of
practically everyone we meet wanting to get healthy or get healthier and a lot
of high voltage marketing, why is healthy snacking littered with failed
launches? And what are key players doing to change this?
Not the happiest of images, but think of a baby: pudgy little fists
clenched tight, roaring in indignation and flailing away as mummy tries to get
another spoonful of healthy but dull food down the hatch. Maybe most of us
don’t need to imagine this, having been exactly that sort of child. Anyway, in a
nutshell that’s the typical Indian consumer’s reaction to health food. Of
course, since we are all grown up and no one is actually trying to force feed
us — unless they are, in which case, good luck with your nightmare of an
existence — the way we react is different. We make noises about how
everything these days is bursting at the seams with fat and salt. We talk about
how sugar is the new cocaine, and how angry we are that this fact was kept
from us for the bulk of our existences (a time during which we gained the bulk
of our existences). We stare in despair at our expanding waistlines and
chubby faces and pretend to laugh it off when annoying people tell us “You
look so ‘healthy!’” We get irate about ‘fat shaming’ advertisements, even ones
that appear in countries we will never go to, for products we will never buy.
And we swear we will eat healthy. That is until we actually buy a pack of
healthy snacks or opt for the ‘healthy’ option at a café.
37
Trends
Snack Food Market
The major trend in the snack food market in the last five years has
been the introduction of new products with a focus on functional ingredients.
Given the major breakthroughs in terms of product innovations and
assortment, the global market for snack food is expected to reach USD 639
billion by 2023, growing at a CAGR of 5.8%.
Mondelez has a new product in its portfolio, savory biscuit brand Vea. The
brand includes crunch bars, crisps and seed crackers, with no artificial
ingredients, trans-fats, colors or flavors. They have various flavors like Thai
coconut, Tuscan herbs, Peruvian Sweet potato, etc.
General Mills Inc. has planned for investment in snack bars sector. The
company’s brands include Chex Mix, Nature Valley and Cascadian
Farm granola bars and Bugles corn snacks. Lately, Annie's has extended the
snack products lineup, which includes gluten-free options.
Kellogg’s is producing teff-based snacks based on Ethiopian recipes. The

launch of a new flavor revolutionizes the company’s snacks business and
leads to be a global snacks powerhouse.
Market Dynamics
Snack food has emerged as an alternative to full-fledged meals with the

paradigm shift in consumer behavior patterns. The higher disposable incomes
as a result of the growing urbanization and increasing preference for
convenience food have triggered the growth of the snack food industry.
The rising health consciousness among consumers and government
regulations regarding procurement of raw materials like vegetables, meat, etc.
are restraining the growth of snack food consumption to some extent.
Innovative product offerings with regards to functional ingredients and organic
foods may provide a future growth opportunity in the sector.
38
Market Segmentation
The global snack food market is segmented by type into salted

snacks, bakery snacks, confectionery, specialty & frozen snacks. The bakery
snacks segment possesses the highest market coverage, while the salted
snacks including potato chips, corn chips, tortilla chips, popcorn, pretzels, etc.
are expected to have the highest market growth during the forecast period.
The snack food industry also includes confectionery items like chocolates,
candies and cookies, crackers, etc. The global snack food report discusses
the market revenue in terms of distribution channels such as specialty stores,
independent stores, online sales, convenience stores, supermarkets and
hypermarket, etc.
Competitive Environment
The competition in the global snack food market is reported to be huge

mostly in the developed world where a large number of snack food
manufacturing companies are operating to serve the limited population. The
growth opportunity in the growing region of Asia-Pacific is catered by a
majority of the big house players. The booming retail sector, increasing
penetration of international brands and distinctive distribution channels
adopted by players are expected to help the market grow at a continuous
pace. Product launches and mergers & acquisitions with smaller level players
have been the proven strategies for market growth. Kellogg’s entered the
global snack food market with the purchase of Pringles.
The India Snacks Market will be more than INR 1 Billion by the end of 2024.
and Company's Strategies to focus on regional taste.
39
The report provides a comprehensive assessment of the fast-evolving, high-
growth India snacks Market. This market research report provides information
on snacks market and market share by organized & unorganized sectors,
snacks products segmentation by Extruded Snacks, Chips, Namkeen, Others;
with key companies' Business Strategies in India snacks market. This report
also identifies the key Growth Drivers and Challenges of the industry. Primary
research on consumer preferences of various snacks product segments,
snacks prices and brands captured in this report.
A consumer survey has also been done in the report on the snacks industry in
India. The survey has been done on Snacks Price Range, Extruded Snacks
Brands Consumers Like to Buy Chips Brands popular in Consumers,
Namkeen Brands Consumers buying.
There are a large number of players working in the Indian snacks market.
Their presence is limited within a town, city or a particular area. They do not
think too much for expansion. As a results, their main focus to develop snacks
items according to the consumers taste in a particular area. This helps them
to be popular in that region. Also their products are low priced compared to
organized players.
Namkeen has the Highest Market Share in India Snacks Market
India snacks market is segmented into Extruded Snacks, Chips, Namkeen

and Others. In terms of market value share, Namkeen has the highest market
share compared to all other segments Extruded Snacks, Chips and Others. At
present, in both organized and unorganized market, Namkeen is the leading
segment.
Home Marketing the Savory Snacks Market in India

A Thousand Billion Businesses
The Savory Snacks Market in India: A Thousand Billion Business
Indians are known for their taste buds due to the varied culture and region
specific flavors and so is the case with snacking. There are ample options for
snacking for Indians; ranging from confectioneries, biscuits and chocolates to
bakery items, western snacks and the traditional home made savories. Also,
sometimes it’s the street food at the local joint that satisfies the craving of
snacking for Indians in between their meals. Additionally, the choice of
consumption of snacks is related to different festivals and occasions. For
example, on the biggest Indian festivals, it’s the sweets and savories that are
in demand whereas on other social occasions, it’s the combination of
traditional home made savories and sweets that attract consumers.
The savory snacks market in India has been gaining momentum for the last
few years due to the penetration of packaged branded snacks in the market. If
we look at the entire savory snacks market, it can be broadly classified into
40
traditional snacks and western snacks. Traditional savories are the ready to
eat mixes, various kinds of Indian namkeens etc. whereas western snacks
mainly consist of chips and the extruded ones. The market is so diverse that it
can be classified based on the product base as well. For example; potato,
rice, corn, cereals & pulses, gram flour, nuts and seeds based and the
flavor/taste based such as salty, tangy, spicy, onion, garlic or cheese.
With the entry of global giants that have capacity for R&D and capital to spend
on understanding consumers, they can come up with new segments to satisfy
the tastes and preferences of Indian consumers. As Indians are known for
their affection towards local culinary taste and flavors, these players come up
with a third type of savory called “bridge snacks” meaning taste and flavor is
local but the product format adopted is western.
If we look at the market potential, according to IKON’s estimates, the savory

snacks market in India (branded packaged and unbranded packaged or
loose) is ready to hit the Rs 1,000 billion mark by the end of the current
decade, growing at a healthy double digit CAGR. The factors driving the
growth of the market are easy availability, affordability, convenience and
hygiene factors. Also, it has been observed that for the past few years the
market is gradually starting to shift towards the organized (branded packaged)
segment, which holds almost 60 percent of the market and the remaining is
shared by the unorganized (unbranded packaged or loose) market segment.
The ‘Western Snacks’ is a quickly growing segment in India; however,
‘Traditional Snacks’ still dominate the market of savory snacks in India due to
various reasons. Holding the major chunk, the rural market is also growing
almost equally in pace with the urban market. It’s not just in the domestic
market, but as like Indians are omnipresent, so are the Indian snacks. In the
last fiscal year 2016, India exported nearly $ 2.8 million worth of savory
snacks including extruded or expanded products, registering a YOY growth of
almost 22 percent from the previous year. The top 5 import countries were
USA as the prime market followed by Australia, Thailand, Israel and United
Arab Emirates due to the huge Indian expat population.
The major players ruling the packaged savory snacks market in India are,
PepsiCo – the market leader with its Cheetos, Kurkure, Lay’s Lehar & Uncle
Chips brands Haldiram, Balaji Wafers (Balaji), Parle (Hippo, Parle), ITC
41
(Bingo), Bikaji, Bikanervala, Prataap Snacks (Yellow Diamond), and DMF
(CRAX) amongst others. Apart from these, there are a large number of
regional players doing wonders in their respective territories and exporting
globally. Although, with the availability of larger variants, the potato chips and
potato based snacks dominate the market, the market trends are changing
quickly from traditional snacks to innovative and healthy packaged snacks
with regional flavors gaining more popularity in the country.
To stay competitive, the branded packaged snacks players have adopted

numerous strategic initiatives to offer tailor-made delivery of snacks that
appeal to both taste and psyche, understanding the important factors that
drive consumers to choose one product rather than another. The branded
packaged snacks players have considered the importance of packaging as an
effective medium of communication and branding in India. The leading market
players have adopted strategies for attractive product packaging showing
brand name, graphics, size/shape, product information and technology used
in manufacturing of products. Indian consumers usually differentiate and
recognize the snacks’ brands based on its product packaging.
The Indian market for savory snacks holds tremendous growth potential. The
future growth of savory snacks market should be attributed to two key reasons
–increasing population and increasing disposable income. The growing
middle class would spend more on snack food. There will be continuously
high demands from urban market, however, with increasing disposable
income and widening distribution network; the rural market will become more
prominent. Western snacks, specifically the ‘Extruded snacks’ are expected to
show healthy growth in the future.
As rightly said by Azaz Motiwala – Founder & Chief Marketing Consultant of

IKON Marketing Consultants, “It’s the taste [that] may not remain a key value
proposition for the snack brands in coming days. The ‘healthy snack’ is going
to be a buzzword in the market and likely to be a prominent category of the
snack industry. Today’s consumer is more inclining towards the nutritional
value of the food products and to keep up with this trend, snack brands must
focus on creating such value in their products rather than just emphasizing on
taste and price.”
42
CHAPTER – 7
PESTEL / STEEPLED ANALYSIS
43
PESTEL / STEEPLED ANALYSIS
A PESTLE tool analysis of the market and consumer scenario:
Political:
The Indian market has been thrown open for direct foreign investments. A
single cell for the facilitation of foreign investors and various schemes has
been launched to attract multi-national corporations. So, the small scale
restaurateurs and local food manufacturers will have to adapt themselves to
technological advancement so as to stay relevant in the field. There are
several initiatives by the food processing and packaging department of central
and state governments that determine the standards and incentives for these
enterprises like subsidies , food parks , equipment fairs and distribution
centres and several related schemes (yojanas) that help promote or fund
these industries. In the 2018 budget, funds have been allotted to establishing
infrastructures such as cold storages and processing units which will help the
food industry prosper.
Economic:
In terms of market size, the Indian food market was worth $193 billion in 2016
and is expected to cross $540 billion in 2020, so there is huge scope. Though,
the availability of raw materials to be used as ingredients is varying due to
inflationary effects. Healthier alternative foods are pricier compared to fast
food or easy-to-make meals, but are in demand in the upper class societies of
cities, so a niche market has already been created in this segment. There is
an increase in the number of small eateries and snack manufacturers, so as
other brands or outlets throwing up discounts and offers one is forced to keep
the price low even if the qualitative input from his side is good. Also, as the
middle class is price sensitive and they form the major chunk, it is important to
price competitively.
Social:
There is plenty of scope and opportunity in this aspect as there is rising

concern for healthier and closer to home-made food among youth and
parenting population, still around 48 percent of the Indian youth prefer
traditional food when they eat out. Rising purchasing capacity especially
among consumers of big cities has enabled them to taste and try new food
centres and items. So, the market for new innovative cuisines is increasing
day by day. Though, there is agitation and protest by people against the sale
of red meat especially beef, so it is better to avoid venturing into this segment
Technological:
New entrants face obstacles in investing on and opting to advanced

preparation and packaging techniques but the well-established ones find it
easier to switch over to new technologies. Some brands like yellow diamond
and golivadapav have expanded successfully by purchasing new technology
44
as the have been able to get investors on board. Also, making machines is
quite difficult as the traditional food preparation process is complex and labor
intensive, difficult to automate.
Environmental:
Changing government rules and regulations have pressed the brands to adopt
a greener approach; snack manufacturers like cola are trying to give back
water more than they draw. These factors have a cascading impact on cost of
raw ingredients. Also, the degrading qualities of fruits and vegetables due to
excessive usage of chemical fertilizers and pesticides on field and increased
customer awareness have paved the way for organic farming. There is
growing craze for organic products but only among a small affluent class is
buying it as it is costlier, the price can come down only if the organic farming
is taken up on a large scale.
Legal:
The usage of preservatives in packaged products has sparked controversies

in the past as well; consumer laws and quality standards for food industry are
very important and somewhat challenging for the owners to keep up with it.
Even though, India has gone up in the ease of doing business list, when it
comes to food industry, there are stringent rules and various government
bodies have to provide approval.
45
CHAPTER – 8
FINANCIAL ANALYSIS
46
FINANCIAL ANALYSIS
Packaged Food Market Overview:

Packaged Food Market size is expected to garner $3.03 trillion by
2020, registering a CAGR of 4.5% during the forecast period 2015 - 2020.
Food can be described as any substance that is consumed to provide
nutritional support to the body. Food contains carbohydrates, minerals, fats,
proteins and vitamins to support the growth of the body.
The concept of packaged food came into existence owing to factors
such as easy cooking, consumption, handling, and safety from external
tampering. Changing lifestyle, convenience of consumption and increased
health awareness are the main factors driving the growth of the packaged
food market. Packaging materials used for food should be convenient for
carrying, displaying, opening and closing.
Some of the major hindrances to the market growth are due to food
contamination, government regulations and emergence of local brands. The
leading players in the packaged food market have been focusing on mergers
and partnerships as their key strategies to expand their market presence. For
instance, Kraft foods partnered with ketchup giant Heinz to expand its
business, while Tyson foods collaborated with Godrej foods in India. The
Asia-Pacific region is expected to be the fastest growing packaged food
markets due to the growing awareness and increasing adoption of packaged
foods; thus, making it one of the lucrative markets for investments and
expansions.
47
 Revenue in the Snack Food segment amounts to US$58,586m in 2019. The
market is expected to grow annually by 7.0% (CAGR 2019-2023).
 In global comparison, most revenue is generated in United States
(US$58,794m in 2019).
 In relation to total population figures, per person revenues of US$42.80 are
generated in 2019.
 The average per capita consumption stands at 1.0 kg in 2019.
Potato Chips (Savory Snacks) Market in India - Outlook to 2022: Market Size,
Growth and Forecast Analytics are a broad level market review of Potato
Chips market in India.
Potato Chips - thin slices of potato deep fried until crisp and then seasoned
with salt or other spices. Available in bags. Does not include processed potato
snacks.
Potato Chips market in India registered a positive compound annual growth

rate (CAGR) of 27.85% during the period 2012 to 2017 with a sales value of
INR 1, 68,472.11 Million in 2017, and an increase of 19.49% over 2016. The
market achieved its strongest performance in 2015, when it grew by 31.27%
over its previous year and its weakest performance in 2017,
The research handbook provides up-to-date market size data for period 2012-
2017 and illustrative forecast to 2022 covering key market aspects like Sales
Value and Volume for Potato Chips and its variants.
Furthermore, the research handbook details out Sales Value and Volume for
top brands for the year 2014 to 2017 and overall market sales by Distribution
Channel (Hypermarkets & Supermarkets, Convenience Stores, Department
Stores, Dollar Stores, Variety Store, Cash & Carries and Warehouse clubs,
eRetailers, Food & Drinks specialists, Drug stores & Pharmacies, Health &
Beauty Stores, Other general retailers and others) where ever applicable.
The research handbook acts as an essential tool for companies active or

planning to venture in to India's Potato Chips (Savory Snacks) market. The
comprehensive statistics within the research handbook provides insight into
the operating environment of the market and also ensures right business
decision making based on historical trends and industry model based
forecasting.
Sales Values in the handbook are depicted in USD ($) and local currency of
country and Volumes are represented in M Kilograms.
48
Snack Food in India by Mintel Market Sizes provides you with annual year-
end market size data, most recently updated in 2018. This market covers
packaged snacks comprising crisps, snack nuts and other snacks. Market
size comprises sales through all retail channels including direct to consumer.
Market size for Snack Food in India is given in INR and tone with a minimum
of five years' historical data. Market Forecast is provided for five years.
Included with this snapshot is socio-economic data for India. Population,
Consumer Price Index (CPI), Gross Domestic Product (GDP), Exchange
Rates.
49
CHAPTER – 9
Michel Porter’s Five Force Model
50
Michel Porter’s Five Force Model
Porter’s Five Forces is a tool for evolving business strategies on the

basis of the nature and level of competition in an industry.
This analysis is a framework that attempts to analyze the level of
competition within an industry and business strategy development.
Attractiveness in this context refers to the overall industry profitability.

An Unattractiveness industry is one in which the combination of these five
forces act to driven down overall profitability.
A very unattractive industry would be one approaching “pure

competition”, in which available efforts for all firms are driven to normal profit.
Michel Porter’s five forces include:
1. Threat of new entrants
2. Bargaining power of customers
3. Bargaining power of suppliers
4. Intensity of competition rivalry
5. Threat of substitute products or services.
1. Threat of new entrants
 Powerful source of competition (New capacity & product range)

 Bigger the entrant – more severe
 Limit prices, affect profitability
 Bargaining power of customers
2. Bargaining power of customers
 Groups/Cartels (Industrial products), Formal/Informal groups)

 Pressure on price, quality, delivery
 Affect cost & investment (demand by customer.
51
3. Bargaining power of suppliers
 Specialized market
 Limited supply
 Affects cost of raw materials Industry attractiveness & profitability.
4. Intensity of competition rivalry
 Influence price
 Cost of competing in industry
 Production facilities – product development
 Advertising, sales force etc.
5. Threat from the substitutes
 Price advantage
 Performance improvement
 Coir decreased synthetic fiber
 Substantial invest – R & D
 Limit price & profitability
52
CHAPTER – 10
FUTURE OUTLOOK
53
FUTURE OUTLOOK
Ethnic/Traditional Snacks Market in India - Outlook to 2022: Market Size,

Growth and Forecast Analytics are a broad level market review of
Ethnic/Traditional Snacks market in India.
Ethnic/Traditional Snacks - Snacks from non-western cultures, usually Asian
specialties.
E.g. Bombay mixes.
Ethnic/Traditional Snacks market in India registered a positive compound
annual growth rate (CAGR) of 25.85% during the period 2012 to 2017 with a
sales value of INR 241,512.08 Million in 2017, an increase of 18.48% over
2016. The market achieved its strongest performance in 2015, when it grew
by 28.67% over its previous year and its weakest performance in 2017, when
it increased by 18.48% over 2016.
The research handbook provides up-to-date market size data for period 2012-
2017 and illustrative forecast to 2022 covering key market aspects like Sales
Value and Volume for Ethnic/Traditional Snacks and its variants.
Furthermore, the research handbook details out Sales Value and Volume for
top brands for the year 2014 to 2017 and overall market sales by Distribution
Channel (Hypermarkets & Supermarkets, Convenience Stores, Department
Stores, Dollar Stores, Variety Store, Cash & Carries and Warehouse clubs,
eRetailers, Food & Drinks specialists, Drug stores & Pharmacies, Health &
Beauty Stores, Other general retailers and others) where ever applicable.
The research handbook acts as an essential tool for companies active or

planning to venture in to India's Ethnic/Traditional Snacks (Savory Snacks)
market. The comprehensive statistics within the research handbook provides
insight into the operating environment of the market and also ensures right
business decision making based on historical trends and industry model
based forecasting.
Sales Values in the handbook are depicted in USD ($) and local currency of
country and Volumes are represented in M Kilograms.
Scope
 Overall Ethnic/Traditional Snacks (Savory Snacks) market value and volume
analytics with growth analysis from 2012 to 2022.
 Value and Volume terms for the Top Brands.
 Distribution channel sales analytics from 2014-2017.
54
The India Snacks Market will be more than INR 1 Billion by the end of 2024.
and Company's Strategies to focus on regional taste.
The report provides a comprehensive assessment of the fast-evolving, high-

growth India snacks Market. This market research report provides information
on snacks market and market share by organized & unorganized sectors,
snacks products segmentation by Extruded Snacks, Chips, Namkeen, Others;
with key companies' Business Strategies in India snacks market. This report
also identifies the key Growth Drivers and Challenges of the industry. Primary
research on consumer preferences of various snacks product segments,
snacks prices and brands captured in this report.
A consumer survey has also been done in the report on the snacks industry in
India. The survey has been done on Snacks Price Range, Extruded Snacks
Brands Consumers Like to Buy Chips Brands popular in Consumers,
Namkeen Brands Consumers buying.
There are a large number of players working in the Indian snacks market.
Their presence is limited within a town, city or a particular area. They do not
think too much for expansion. As a results, their main focus to develop snacks
items according to the consumers taste in a particular area. This helps them
to be popular in that region. Also their products are low priced compared to
organized players.

segment.
PepsiCo India is a Leading Player in the India Snacks Market
Pratap Snacks, Balaji Wafers, DFM Foods, Bikanervala, Haldirams and

PepsiCo India are some of the most popular snacks companies in the India
55
organized snacks market. PepsiCo India has the highest its market share year
compared to other snacks companies present in India.
India snacks market will be an opportunity of more than INR 1 Billion by the
end of 2024. To achieve this growth, India snacks market is predicted to grow
with double digit CAGR during 2018 to 2024. India snacks market is dived
between organized players and unorganized market. At present Unorganized
market is dominating the India snacks market. But this scenario is expected to
change during the forecast period of 2018-2024. India Snacks Market is
growing due to following factors Lifestyle Changes, Rising Urbanization,
Growing Middle Class Population, Local Availability and Availability of Snacks
in Small Package Size, Low Price and Company’s Strategies to focus on
regional taste.
segment.
56
PART – II
COMPANY STUDY
57
CHAPTER – 11
COMPANY INFORMATION AND PRODUCT PROFILE
58
COMPANY INFORMATION AND PRODUCT PROFILE
COMPANY OVERVIEW
Name Balaji Wafers Pvt. Ltd.
Plant Address Vad-Vajdi, Kalawad Road, Rajkot – 360003
Telephone & Fax No. +91-281-2783755/2387132
+91-281-2783747
E-mail Address cntanct@balajiwafers.com
Established Year 1982
Size of the Organization Medium Sale Industry
Form of an Organization Private Limited
Bankers SBI Commercial Bank
Auditors DK Patel & Company
Weekly off Wednesday
Shift 1
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BRIEF INTRODUCTION TO THE MANAGEMENT
This is a brief introduction of the managing persons of the Balaji

Wafers Pvt. Ltd. These are the person who gave their greatest contribution
towards company’s success.
1. Mr. Bhikhubhai Virani (Chairman)

2. Mr. Chandubhai Virani (Managing Director)
3. Mr. Kanubhai Virani (Technical Director)
4. Mr. Hiteshbhai Virani (General Manager)
5. Mr. Nayanbhai Tank (Marketing Manager)
6. Mr. Parmar bhai (Production Manager)
7. Mr. Ketanbhai Patel (Finance Manager)
COMPANY PROFILE
The success story of Balaji Wafers Pvt. Ltd.
The company has been engaged in production of delicious and

nourishing food products. It produces Wafers and Namkeen having good
quality for each product.
Brief History of the Company
Most of the growing companies have a modest beginning. The infancy

of the company began 36 years ago in 1982 with the efforts of Mr. Popatbhai’
sons, Mr. Meghjibhai, Mr. Bhikhabhai, Mr. Chandubhai and Mr. Kanubhai the
members of their family.
The initial business was started in canteen of Astron talkies. Then it

acquired a small place with every limited investment wile indigenous frying
method. Thereafter, a semi-automatic plant was established with production
capacity of 200 kg per hour. Finally, a fully automatic plant, the first of its king
in Gujarat, was established to offer excellent food products to food lovers of
Gujarat.
Best Quality, Affordable Price
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It is the policy of the company to accept nothing less than a perfect.
Besides, the company is determined to offer its products in attractive and
weather resistant packing at affordable prices to all classes of people in
Gujarat.
It is an encouraging fact that the share of the company in the ‘Brand
Loyalty’ has remained around 70% to 80% in Gujarat. The stalwarts behind
the success story of the company are Mr. Bhikhubhai (Chairman), Mr.
Chandubhai Virani(Managing Director), and Mr. Kanubhai Virani (Technical
Director), who have also devised an ideal distribution channel to ensure the
supply of fresh products in any comer of Gujarat within 48 hours. Effective
distribution is an important as efficient production for the growth of the
company.
Scaling high with Customer Satisfaction
In the past two decades of life, the Virani Family has woven most of its
personal activities, aspirations and dreams with the fabric of the company.
These sacrifices have enabled the company to crave its name in the industrial
history of Gujarat as a unit with most sophisticated and latest plant.
Company’s Achievements
The company’s food products like potato wafers, banana wafers and
other salty products are prepared in its fully automatic plant with bacteria-free
and stringent hygienic standards. The use of computer system ensures
uniform quality and obviates the necessity for touch of human hands. The
production environments make it possible to make the products less oily and
more nutritive.
Vision
The Company’s Vision, shared by the brothers and the young is to grow into a
global giant using modern methods and techniques. The key drivers in this
journey of growth will continue to be the age-old traditions of Trust and
Quality, without any compromise.
Mission
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The company aims to a ‘value for money product’, accessible to consumers
all across the country. To accomplish this, the company is seeking to
strategically develop a strong and credible distribution network, C&F agents,
dealers and retailers.
Technology
Balaji Wafers is constantly striving to upgrade its technological strengths with

latest machinery and processes. The aim is to manufacture the best possible
product, with an eye towards “green” practices and smoother work systems
for the staff.
The company was among the first to install a fully automated plant in Gujarat.
Quality
Balaji Wafers is committed to providing Quality products and takes extra care
to ensure that its high standards are met at every step of production. Only the
best and graded raw materials are used for making the products. Production
is continuous and automatic to ensure Zero human contact to preserve its
sterility. International parameters are strictly adhered to for nutritional and
hygienic values.
Lunch time for the Viranis, founders of the Rs 1,000-crore Balaji Wafers, is
sacrosanct. The three founders, Bhikhubhai, Chandubhai and Kanubha, along
with their sons Mihir, Pranay and Keyur, respectively, get together over home
cooked Gujarati meal every afternoon at their corporate office on the outskirts
of Rajkot. Often, the sons seek business advice from the elders. The goal of
the younger Viranis, says Keyur, is to make Balaji a national brand. "We are
net savvy and are more in touch with consumer preferences and production
best practices," he says. "Our Endeavour is to be as contemporary as
possible but not at the expense of diluting the brand value that our parents
have created."
The second generation of the Virani family is clearly beginning to take
centre stage. The foray into healthier snacks is the brainchild of the younger
Viranis. The company recently invested about Rs 250 crore in setting up new
machinery at its 85,000 sq. meter fully automated factory on the outskirts of
Rajkot, where it would make a range of baked, multigrain snacks that are
perceived to be healthier than traditional fried snacks. It has also acquired
land near Indore to set up its third factory, which would be operational in
2016. With this, the company would be spreading its wings to northern India,
from its traditional foothold of Gujarat and Maharashtra.
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The younger Viranis are aware a bet on healthier snacks by bigger
companies - PepsiCo's Aliva and Parle Product's Smart Chip, for instance -
failed to lure customers. Keyur, who looks after research and development,
says the R&D team is trying to come up with a product that is tasty as well as
healthy. Pranay, who takes care of business development, says Balaji is
reducing oil consumption even in its traditional offerings such as potato wafers
and namkeen. "But the value addition is only up to the level where the taste
doesn't get compromised," he says.
The second generation also feels the need to get some strategic
investment into the business in order to take it to the next level. The Rs 1,000-
crore company was in advanced talks with PepsiCo and Kellogg's last year,
but both deals fell through. "Our idea of strategic partnership was to get
access to global best practices... but all of them wanted a majority stake in the
business which we were not ready to part with," says Keyur. The company
has also been evaluating private equity deals. However, Managing Director
Chandubhai isn't keen on roping in strategic investors. He says strategic
partners would only want profits. "They will never grow the business with the
same passion as we have done," he says.The company has more than 70 per
cent market share in Gujarat and over 60 per cent in Maharashtra. Despite its
lofty ambitions, Balaji Wafers remains regional in its thinking. For instance, it
doesn't believe in spending much on marketing and advertising. While
PepsiCo spends seven to eight per cent of its snack revenue (around Rs
6,000 crore) on advertising and hires Bollywood superstars such as Ranbir
Kapoor to endorse its brands, Balaji's ad and marketing spends are negligible.
Chandubhai's mantra for growth is to pump in as much muscle into

distribution - the company has a network of 600 dealers in Gujarat and
Maharashtra. He feels that marketing is all about understanding consumer
needs and offering great products. This strategy has certainly worked. It not
only has more than 70 per cent market share in Gujarat, but has also
managed to displace PepsiCo's Lays in Maharashtra from leadership
position in the last five years since it has entered the market, according to
industry estimates. Balaji Wafers has over 60 per cent market share in
potato chips in the state.
The biggest positive rub-off of having a distribution-only model is the

company's ability to offer more at the same price. While an Rs 10 pack of
Lays or Bingo has around 13 grams of chips in it, an Rs 10 pack of Balaji
contains 20 grams chips. However, Keyur says they may be soon forced to
cut down on gram mage as potato prices rise.
The company is also increasing its dependence on snacks. The

contribution of wafers has come down from 70 per cent to 40 per cent.
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"Snacks get us higher margins than wafers, so we are trying to balance our
portfolio," says Pranay. Increasing focus on snacks is, indeed, a logical step
forward, points out U. Krishna Rao, the head of the snacks business at Parle
Products. Rao says that in the Rs 9,000-crore snack business, the growth of
potato chips has decreased to single digits while the namkeen segment is
growing 20 per cent annually. "The erratic potato pricing as well as consumers
not wanting to consume too much potato wafers has affected sales," says
Rao.
The company is also not too open about hiring professionals. Apart
from the head of production, Nishikant Bapat (formerly with PepsiCo) and the
R&D head, all the other employees holding managerial roles have been
groomed by Chandubhai. "Professionals don't stick on for long, all the people
I have personally groomed are still there with me," he says.
The Virani family's traditional mindset has definitely worked so far. But
will this mindset work when the company is at the cusp of taking a leap to the
next phase of growth? Its biggest challenge would be attracting professionals
as grooming local talent in a new market would, indeed, be tough, says a
senior partner in a leading consulting company.
The company also has to deal with the challenge of coming up with
snacks tailor-made for local tastes. Ganthia, a snack which sells like hot
cakes in Gujarat, may not necessarily work in UP. The younger Viranis claim
that they are fully prepared for the challenge.
Despite being a competitor, Rao of Parle Products is confident that the

Viranis will be able to establish themselves in the new markets. "They
completely cornered the market leader in Maharashtra when they came in five
years ago and became a leader with huge shares. Balaji's entry into North is
surely an alarm bell for the larger snack companies."
A tough competitor for multinationals: Chandubhai Virani
What was founded with a capital RS. 20000 by two brothers who came
to Rajkot from a remote village in Jamnagar district has grown into an empire
with revenues of Rs 1,200 crore. Multinationals like Pepsico and Kellogg
India are reported to have shown interest in picking up a stake in the Rajkot-
based wafers and 'namkeen' (salted snacks) giant.
In 1974, three sons of a farmer in Dhundoraji migrated to the nearest urban

centre, Rajkot. Armed with no more than a primary education and Rs 20,000
as initial capital from their father, the Virani brothers - Bhikhubhai,
Chandubhai and Kanubhai - came to Rajkot in search of work. They had not
much money, no references, and no prior experience of working in
manufacturing industry.
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Bhikhubhai and Chandubhai began selling refreshments in Rajkot's
Astron Cinema, and in 1976, the cinema owner Govindbhai handed over the
canteen to them on a contract basis. Six years later, in 1982, the brothers
decided to turn this into their core business and invested around Rs 20,000 in
it.
They began sourcing wafers from the only supplier in Rajkot, and also
started selling toasted sandwiches made at home by their wives. Potato
wafers, they noticed, constituted around 80 per cent of the refreshment sales,
but the supplier was unable to meet the demand. This got them thinking of
ways to develop their business by inducting new technology.
In 1989 the company set up a plant in Aji, Gujarat Industrial

Development Corporation's industrial estate in Rajkot, investing Rs 5 lakh.
Since then the company has invested around Rs 500 crore in operations. The
first year's revenue was around Rs 2.4 lakh.
Chandubhai and his brothers were quick to realise the importance of

technology in scaling up. In 1995-96 the company installed its first semi-
automatic plant with a capacity of 250 kg of potato chips per hour. By 1998-99
it was working at almost full capacity.
Demand still exceeded what they could produce, and in 1999 Balaji
Wafers installed Gujarat's first fully automated potato chips plant, following it
up with another in 2003-04 in Vajdi district with a capacity of 1,200 kg per
hour. Sales continued to grow and, between 2000 and 2006, Balaji captured a
90 per cent share of the potato chips market in Gujarat, and a 70 per cent
share of the namkeen category. Besides, its markets in Maharashtra and
Rajasthan were also growing.
Thus encouraged, they set up yet another plant in Valsad in 2008 with
a processing capacity of 8,000 kg of potatoes per hour, producing 2,000 kg of
potato chips per hour. The company now has a capacity to process around
450,000 kg of potatoes per day and 400,000 kg of namkeen per day. It
generates direct and indirect employment for 250,000 people.
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Recently, there have been reports of Balaji Wafers' promoters looking
to dilute their stake, and multinationals like Pepsico and Kellogg have shown
interest. Pepsico is believed to have exited the race because Balaji was not
open to selling more than 15-20 per cent of its holding. However, Kellogg is
learnt to have started discussions with Balaji to pick up a 10-15 per cent
stake. Balaji is now considering entering the northern and southern Indian
markets, and plans to set up manufacturing plants over the next two to three
years with an investment of around Rs 200 crore. The stake sale is likely to
help fund the expansion plans.
Chandubhai declined to discuss the stake sale issue, saying, "All

decisions will be taken by the next generation. Whichever way they want to
run this company, I am with them."
Balaji Wafers to set up new production facility in Indore
Rajkot-based snacks maker Balaji Wafers Private Limited is setting up a new

production facility at Indore in Madhya Pradesh.
The company plans to invest about Rs 400 crore in a phased manner in the
next two or three years.
"As part of our expansion, we acquired land in Indore some months back.
Construction work is going on and it will be over within the next year and a
half," said Keyur Virani, director, Balaji Wafers Private Limited.
The initial production capacity of the new plant will be 1,500 kg per hour for
wafers and other snacks and gradually, output will be doubled based on the
requirement.
The setting up of a production unit in Madhya Pradesh is part of the

company's plan to tap markets in the North Indian market.
Virani said, "With this new plant, we will be able to cater to Madhya Pradesh,
Rajasthan, Delhi and surrounding areas. The new plant will manufacture all
the products of Balaji."
Balaji Wafers enjoys around 65 percent market share in western Indian

snacks market and is present in Gujarat, Maharashtra, Goa, Rajasthan and
some parts of Madhya Pradesh.
Its turnover exceeds Rs 1,200 crore in 2013-14 and the company expects Rs
1,600 crore turnovers by the end of current financial year.
Talking about the investment for the project, Virani said, "It is an Rs 400 crore
project and we will manage fund through our internal sources and from banks.
Investment will be done in a phased manner. First, we will invest about Rs
66
200 crore to set up the plant and its machinery and in the second phase,
another Rs 200 crore will be spent for various other requirements."
The company had invested about Rs 100 crore and installed two production
lines at its plant in Rajkot in 2014. It also doubled its production capacity at
Valsad.
“We are planning to introduce baked corn rings”

Monday, 23 September, 2013, 08 : 00 AM [IST]
Balaji Wafers Pvt. Ltd, a well known brand in the snacks market with a share
of more than 15%, caters to the Gujarat, Maharashtra and Rajasthan belt with
offerings that are a mix of tradition and modern - namkeen and
wafers. Chandubhai P Virani, MD, Balaji Wafers Pvt. Ltd, in an email
interaction with Harcha Bhaskar shares details on the snacks space and how
the company plans to strengthen its presence locally and globally.
“We are going to increase production capacity at Rajkot plant. Work on

two new production lines is going on for the last two months. New production
lines will be functional from next month,” said Keyur Virani, director, Balaji
Wafers Private Limited.
The new production lines will manufacture wafers and other snacks.
Balaji is also planning to launch new flavors in the market in coming days.
Virani said, “The expenditure for the two new production lines would be
about Rs 80-100 crore. We started investment for this project last year and
the fund for this was managed from internal accruals.” Production capacity of
the new production lines, which would be fully automatic, will be around 5,000
kg per hour.
Currently, the production capacity of Rajkot plant is 8,000-10,000 kg

per hour in which the company produces multi-flavored wafers, chana dal,
mung dal and 25 other snacks.
67
The company shelved its July 2013 plans to sell 15 per cent stake to
private equity funds for future expansions and is now readying for initial public
offering (IPO) to raise fund for its future plans.
“We are preparing to come up with an IPO to raise funds for our future
expansions. The company plans to offer not more than 10 per cent equity
shares of the company,” confirmed Virani.
Balaji Wafers enjoys around 65 percent market share in western Indian

snacks market and is present in Gujarat, Maharashtra, Goa, Rajasthan and
some parts of Madhya Pradesh. Its current turnover exceeds Rs 1,200 crore
and the company expects 25-30 percent growth in 2014-15.
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PRODUCT PROFILE
Product list
POTATO SALTED WAFERS
MASALA POTATO WAFERS
TOMATO MASTI
CHAT CHASKA
CREM ONION
MASALA DHOOM
BANANA MARI WAFERS
BANANA MASALA WAFERS
FARALI CHEVDO
RAJVADI CHEVDO
RATLAMI SEV
SING BHUJIYA
SING BHUJIYA NIMBU
MUNG DAL
CHANA DAL
MASALA SING
THIKA MITHA
MIX KHATTA MITHA
MIX GATHIYA
CHATAKA PATAKA
CHINSE MASALA MASTI
TANGI TOMATO
WHEELOS
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MASALA KHAKHARA
METHI KHAKHARA
PLAIN KHAKHARA
JEERA KHAKHARA
ALU SEV
VATANA
70
71
72
73
74
75
CHAPTER – 12
FUNCTIONAL DEPARTMENTS
76
FUNCTIONAL DEPARTMENTS
The company was started in the year 1976 by the Virani family. First
they used to supply the wafers at Astron cinema in Rajkot. After getting
success they set up a semi automatic plant which increased its sales. The
company is producing 2 types of products i.e. wafers and namkeen.
Balaji Wafers Private Limited is a medium scale company producing

wafers and namkeens. The company has a good brand name in Gujarat,
Maharashtra, Madhya Pradesh, Goa and Rajasthan. It has 90% market share
of wafers and 70%market share of namkeens in Gujarat.
The unit is located at Vajdi, Kalawad road, Rajkot. The company has
another plant at Valsad.
PRODUCTION DEPARTMENT
PRODUCTION TECHNOLOGY
In a fully automatic plant like Balaji all the aspects of manufacturing are
carried on by computers, operated by few men. Balaji Wafers Private Limited
has fully automatic plant with latest machineries. Benefits of economies of
scale, standardized products, speedy production and fewer accidents are
achieved.
PRODUCTION PROCESS
The important aspect of any company is its production process In BALAJI

WAFERS PVT. LTD., production process is a well – planned process. In
contains all that important stages, which is required to make a product well,
accepted in the market. Layout is as follows:
Raw material–washing–peeling–inspection–cutting–washing–frying–
inspection–adding spices–dispatch
QUALITY CONTROL
Quality control department of BALAJI WAFERS checks the quality of the

goods with the help of equipments. This department checks the quality of raw
material and finished products. Not only this, it also checked the quality of the
product at each stage of the production.
INVENTORY MANAGEMENT
The company has a systematic inventory control. For inventory, it uses First in
First out (FIFO) method. They dispatch the finish products as soon as they
77
are produced. Company does not hold inventory for more than 2 days
including raw material and finish products.
PERSONNEL DEPARTMENT
SELECTION AND RECRUITMENT
In BALAJI WAFERS, they recruit staff member through advertisement in

highly circulated news paper. They are not using any employment exchange
or employment agencies for recruitment. Selection committee member select
candidates by interview. After the candidate is selected, the company gives
him appointment letter that when he has to join the company.
WAGES AND SALARY
The remuneration is paid to each and every worker not on the monthly basis
but on daily basis. On the other hand salaries to other staff members are paid
monthly. These wages and salaries are according to government norms.
Employee also receives bonus and gifts on special occasion or at festivals.
PERFORMANCE APPRAISAL SYSTEM
Performance Appraisal is a process of evaluating an employee’s performance

of a job in terms of its results. In ‘Balaji Wafers Pvt. Ltd.’ the supervisor sees
the employees ability that they work properly and efficiently, whether he
understands, his responsibilities or not, how his behavior towards his
colleague etc.
TRAINING AND DEVELOPMENT
The company gives continues training to new employee but they don’t give
training to old employee. Training is given to the employee to make them
aware as how to operate machines, how to do the work very effectively and in
given time limit, etc. The main aim of training is to develop leadership quality
and responsibility, and work can be carried out in most efficient manner and
also very smoothly.
MARKETING DEPARTMENT
PRODUCT POLICY
The product policy and strategy is the cornerstone of marketing mix. In

Balaji Wafers Pvt. Ltd. following steps are followed in product planning.
Market price and sale price
Demand of particular commodity
78
Cost of production
Necessity and aim of company
Balaji Wafers Pvt. Ltd., does not have any specific product planning but
depending on the market environment or the trends they produce new
products in their product portfolio.
PRICING POLICY
The company’s pricing policy is cost + profit. Whatever expenses have

incurred during the manufacturing of the product is considered plus profit is
also included. Competitor’s prices are also considered. Through this they try
to reduce their cost of production.
Balaji Wafers Pvt. Ltd., is more conscious abouttheir price because

people are more sensitive to price that’s why they providing best quality at
less price again the exact price policy helps customer for fast transaction.
DISTRIBUTION CHANNEL
The company has very strong distribution channel. It has distributor

named “Kataria” that ensures to supply fresh product in any corner of Gujarat
24 hours. Hence the availability of Balaji’s product is very large.
COMPETITOR
As Balaji Wafers Pvt. Ltd. has very wide marketing area it is but
obvious that it will also have some competitors in this field. The main
competitors are as follows.
Main competitors:-
Lays, Atop, Kukure, Gopal Namkeen, Uncle Chips, Haldirams Namkeen
Organization is made up of people and without people organization

does not exists. The resources by themselves cannot fulfill the objectives of
the organization. The resources need to unite into the team.
79
The main need of the study is to determine the impact of retailers’
satisfaction at every place in marketing management. If the retailers are
satisfied with services of the firm they can provide useful information to the
company and act as a bridge between end users and manufacturer.
Thus we can say that the research on retailers’ satisfaction will prove
beneficial to the Balaji Wafers Private Limited. This study will give information
about the expectations of the retailers and fulfill those requirements. All this
will lead to a great success for the company.
ORGANIZATION CHART OF MARKETING DEPARTMENT
Marketing Manager
Officers
Quality Controller
Research Officer
Supervisor
Workers
ADVERTISING
Balaji Wafers Pvt. Ltd., has given their advertisement in different ways.
Since they had not given advertisement in TV because of market criteria and
availability of products. They give their advertisements through Calendars,
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Diaries, Paperweight, Wall Paintings, Magazines, Newspapers, and Stickers
etc. to communicate with people. On the other side they are also taking the
advantage of Internet which have unlimited target audience for their products.
MARKETING RESEARCH
Balaji Wafers Pvt. Ltd., do have marketing research program to be
proactive against future scenario but they do this kind of activities when
requirements is raised. It can be though professional researchers or from the
students of different professional B-Schools or College Students.
SALES PROMOTION
Balaji Wafers Pvt. Ltd., promote Sales through giving incentives to their
agent and distributors and also by doing competition among them. They try to
keep relationship to their network and people by providing stickers, calendars,
gifts and wishing cards. They are mainly concentrating on their distribution
channel.
COMPETITORS
Frito Lays (Kurkure-because of more varieties/flavors in products)

A1 Namkeen (Growing with more quality like Balaji)
Samrat (More in Ahmadabad capturing more Market)
LOCAL
Shakti (because of Health related products)

Ghopal (Capturing slow Market but Growing)
Others (Gordhanbhai – because of namkeen stre indifferent places)
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INNOVATIVENESS
Recently, Balaji Wafers Pvt. Ltd., have changed the packaging style of
their products, which is really appreciated by the people of Gujarat. With new
concept of packaging and freshness packets. It gives more brand loyalty to
Balaji Wafers Pvt. Ltd., because of also,
 Brand name
 Packaging Style
 Guaranty and Warranty
 After Sale Service
 Price and Quality
 Varieties of Products
 Others
82
CHAPTER – 13
SWOT ANALYSIS
83
SWOT ANALYSIS
STRENGTH Below is the Strengths, Weaknesses,

Opportunities & Threats (SWOT)
Analysis of Parle Wafers :
1.Parle's brand backing
2.Good distribution and availability
3.Available in flavors
4.Cheaper when compared to lays
WEAKNESS 1.High fat and cholesterol in potato

wafers
2.Comparison to Lays in package
design
3.Low Brand Recall
OPPORTUNITIES 1.Leverage successful brand Parle

2.Advertise more
3.Launch Unique Flavors different
from the normal four
TREATS 1.Threat from local substitute snacks

2.Boycott by health conscious people
STRENGTHS:
1. Strong brand name image company reputation
Balaji Wafers Pvt. Ltd. has been in operation for over 22 years. Balaji
Wafers Pvt. Ltd. recently produce a new product named Aloo Sev on the
demand and liked by the customers. Balaji Wafers Pvt. Ltd. has a story brand
image and brand loyalty synonymous with quality and customer focus.
84
2. Cost Advantage
Balaji group concentrates on economies of scale, which results in

producing a product at a lowest cost. Moreover, they developed it with fully
automatic plant in Gujarat, which reduces in hiring costly technology from
outside and results in cost advantage. That’s why Balaji Wafers Pvt. Ltd. is
lowest cost manufactures in this market.
3. A widely recognized market leader and an attractive base
Due to concentrate on wide middle class, they produce products at a

cheaper rate compare to other and hence it enjoys leadership especially in
Wafers and other products, by giving it at affordable price.
4. Wide geographic coverage and a strong distribution capability
Balaji Wafers Pvt. Ltd. covers first largest market of the Gujarat. It not only
market leader in Gujarat because it has a strong distribution capability all over
the Gujarat and now it looks for outside the Gujarat.
5. A strong financial condition: ample financial resource to grow the

business
From the latest annual financial reports indicate that Balaji Wafers Pvt. Ltd.
has making profit by which it grows year after. Moreover, they have reserves
some amount of fund, which can be utilized for R&D, work and shows a good
financial condition along competitors. They manage to maintain profit growth,
through producing and developing a new product in the market.
6. Ability to take advantage of economies of scale
“When you want to jumpstart volumes, the only thing that works is price”.
To compete on price, which was the way it went. This results in introduction of
Aloo Sev, whose price is lesser compare to any of competitors. This makes
Balaji Wafers Pvt. Ltd. products affordable to any class. Moreover Balaji
Wafers Pvt. Ltd. is product is the lower in price compare to other competitors,
which improves the sales.
85
WEEKNESS:
1. Cannibalization of products
So many new products may eat in to the market for existing products of Balaji
Wafers Pvt. Ltd. for instance; one product may eat into the market for another.
2. Underutilization of capacity3.Lack of Advertisement
It could be weakness not to advertise in TV but looking into the availability or

products to each area of then and then they should use TV media for their
advertisements. They should go for public relationship by providing free gift’s
to school’s student or sponsoring festival events. Lack of professional person
in the company. Lower frequency of advertisement in public place.
OPPORTUNITIES:
1. Abilities to grow rapidly because sharply rising demand of Balaji

Wafers in food market. Food products have grown at a healthy rate of
over 25% for the last three to four years. And it will remain the same for
the coming couple of years. This motivates I food product
manufacturers to adapt build strategy through innovation of new
design, shape, and size etc., products. Company should focus more on
price to capture the urban market.
2. Virtual zero maintain once among the products
3. Pricing and Packaging effectively which is much higher than

competitors
4. Launching of new products and variants of existing products backed up

by appropriate marketing efforts.
5. There is quite prospective market in India as well as foreign country to

expand the business of Balaji Wafers Pvt. Ltd. and producing various
flavors depending on market trends. With changing trends of fast
86
foods, company can open their retail outlets/restaurants in particular
area to making fast-food product.
THREATS:
1. Threat across the competitors
The threat from the competitor, manufactures who are some player n to
the market, for which some are from local market and some are branded
companies. Kurkure for Frito lays the largest manufacturer, followed by lays,
and the Balaji Wafers Pvt. Ltd. feels that there are at least three more
producers capable of turning out a peace competitive, quality product in
Gujarat.
2. Sustain pricing
To continue computing o piece, Balaji Wafers Pvt. Ltd. has to keep its cost
in cheeked increase its volume at the same time.
3. Mindset of buyers
Consumer has tried out new products, most middleclass product owners
like to stick to tried and tested product.
4. Increase in awareness about the product among

thepeople.5.Customers test and preferences
Today’s, customer test and preferences or consumer behavior has been

changing they can be easily diverted through other competitors products due
to offer quality, flyover, gifts or availability, public relationship and other local
players is capturing the slowly the market which should be taken care byte
company.
5. Government Regulation7.Dealers not adjusted with changing

realities
Sometimes dealers are hesitated to expand their go downs due to

increase in the product line of the company because company compels
dealers to purchase the entire product line even though the selling of all the
product is not equal.
87
FUTURE OUTLOOK
Research and Development
The product is well accepted in the market for its excellent taste ability
and good packaging. Some patents have been applied for covering new
inventions generated during the development stage of this new product.
Upgrades for product quality, size, and packaging etc. have been introduced
in the market. Development of a new product with modern styling is complete.
Similarly, the company is working on new product for company’s
development.
New products are introduced in the market during the current year. The
company has further strengthened its relationship with customers of Gujarat
and also outside Gujarat. Technical interactions have enhanced the R&D and
product development capabilities of the company.
Productivity, Safety, Health and Environment
The company has received Many Award for Food Industry Instituted by
National Productivity Council. Provision of safety equipment, creation of safe
working conditions and adoption of safe working practices are continuously
monitored, resulting in considerable lowering of frequency rate of accidents.
The company’s department of Industrial Medicine and Hygiene, during

the year under review, carried out medical examination of the employees
apart from its regular duties of treatment in accident cases, emergency
medical care, etc.
The company’s Vad-Vajdi plant successfully implemented Environment

Management System (EMS) and was given the ISO certificate. The
company’s Vat-Vajdi plant already holds this certificate. This makes Balaji
Wafers Pvt. Ltd. the first largest multi-location manufacturing company in
Gujarat.
88
CONCLUSION
Conclusion is not just the formality but it is inner view of one’s observation on
the subject or work. At Balaji Wafers, Rajkot I have worked for MAM - 6
project. I have Thorley enjoyed their training and guidance. The practical
knowledge that I have received from them was beyond my imagination.
They have made guide good working past and they have achieved their brand
name and today they are maintain it very effectively in this way we can say
that their future is quite bright and good. This is my first project with food
industry, and I’m amazed to see the level of cleanliness and the hygiene that
they are maintain at production unit..
I wish the company all the best for the future; I wish that they get success with
their future plan.
89
BIBILOGRAPHY
90

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Project Report

In partial Fulfillment of the Requirement of the award of the degree of

UNDER THE GUIDANCE OF

Gujarat Technological University

 Put this page blank (One page per student)

Management is an ongoing process and most happening thing in life.

Retailers’ attitude is one of the most crucial areas of management.

It is always a pleasure to remind the fine people in the Marwadi

First of all, thanks to my parents for giving me encouragement,

Thirdly, I also want to express my deepest thanks to Dr. Alpesh Gajera,

Moreover, I would like to thank Mrs. Monika Mehta, faculty of

Thanks also to BALAJI WAFERS who allow me to do project report for

Finally, I apologize all other unnamed who helped me in various ways

Date: _____/_____/2019 Name: Neha Chotaliya

Enrolment No.:- 167340585037

This is to certify that project work embodied in this report entitled

The report is approved / not approved.

Comments of External Examiner:

SR. PARTICULARS PAGE NO.

Part – 1 Industry Study

1 Growth and Evolution of Industry in India 1

3 Demand determination of the Industry 14

4 Players in the Industry 21

5 Distribution channel in the Industry 29

6 Key Issues and Current Trends 36

8 Financial Analysis of Chosen Industry 46

9 Industry Analysis : Michel Porter’s Five Force Model 50

Part – 2 Company Study

11 Company Information and Product Profile 58

13 SWOT / TOWS Analysis 83

14 Future Outlook / Conclusion / Suggestion 88

TABLE PARTICULARS PG. NO.

2 Financial Analysis of Snack Food Industry 51

As foods category is growing in India, several food companies are

The Indian Food Industry is one of the fastest growing segments in

Namkeen consumption is high in Western and Northern states of India

Snacking is considered as the routine habit in India between meals or

There are a large number of players working in the Indian snacks

Average annual per capita consumption of commercial snacks is 500g.

Due to advancements in technology related to cutting, slicing and

Greater availability and affordability

Additionally, rising health consciousness owing to sedentary lifestyles

Packaged food industry comprises bakery products, biscuits, ready-to-

Furthermore, the market size of ready-to-eat snacks and namkeens is

Other factors which have contributed to its growth include product

Extruded Snacks Brands

 PepsiCo (Kurkure, Cheetos)

 DFM Foods CRAX Corn Rings, Natkhat

 Pratap Snacks (Yellow Diamond, Rings, Chulbule, Puff Fungroo)

 PepsiCo (Lay's, Uncle Chips)

 Bikanervals Bikano (Chatak Masala, Tangy Tomato, Simply Salted,

 Balaji Wafers (Simply Salted, Magic Masala, Pizzy Masala, Tomato

 Haldirams (Khatta Meetha, Moong Dal, Mixture, All in One, Aloo

 Bikanervala (Aloo Bhujia, Badam Lachcha, Tasty Peanuts, Shashi

 Pratap Snacks (Chana Masala, Peanuts, Classic Peeanuts, Falhari

The demand changes as a result of changes in price, other factors

These other factors determine the position or level of demand curve of

1. Tastes and Preferences of the Consumers:

An important factor which determines the demand for a good is the

5. Chataka Pataka (Chinese Chaska)

2. Income of the People:

The greater income means the greater purchasing power. Therefore,

Date: _/_/2019 Name: Neha Chotaliya