Presented by:

Aman Chowdhary 111206 Chintan Bhandari 111218 Rohan Shah 111249 Saloni Agarwal 111253 Sudeshna Banerjee 111258

Management Consulting is the rendering of independent advice and assistance about management issues. This typically includes identifying and investigating problems and/or opportunities, recommending appropriate action and helping to implement those recommendations. The Consulting Industry has 8 kinds of operations:

Accountancy Based firms IT/Telecommunication companies

US-based consultancies
Small-to-medium-sized independent consultancies Actuarial firms Business school-based consultants Small consultancies Sole practitioners

Few top management consulting firms: Ernst & Young, PricewaterhouseCoopers, KPMG, Deloitte, IBM, Microsoft, McKinsey, Boston Consulting Group etc

Nirmayans Consulting Group (NCG): We are a new age consulting group based in Ahmedabad, India.
We bring excellence to the table from our varied areas of expertise spanning:

Strategy & Marketing HRM Finance, Auditing & Taxation Corporate Laws Operational Improvement Services

We have a rich blue chip client experience in US, Australia and India. We also provide services in areas of organizational change management assistance, development of coaching skills, technology implementation, etc.

Desai Brothers Limited is a US $ 100 million company with diversified business operations in chemicals, tobacco processing and finance. The company was founded 102 years ago in Pune byShri Haribhai V Desai . Desai Brothers Ltd. primarily produced tobacco products (bidis). It has diversified into food products for customers in India and internationally. It offers pickles, papads, appalams, cooking pastes, curry powders, ready to cook mixes, ready to eat products, chutneys, canned vegetables, mango pulp, tamrind, masalas, and murmuras. Desai Brothers Ltd. was founded in 1901 and is headquartered in Pune, India with sales offices in New Delhi, Kolkata, Pune, and Chennai, India. It has presence in the Middle East, the Far East, Australia, the United Kingdom, Canada, and the United States. The company is holding talks with investment bankers to identify and buy smaller companies by exploring inorganic growth. The company is piloted by Shri. Natubhai H Desai, Chairman and Shri Nitinbhai R Desai, Vice Chairman & Managing Director. The Company also has strong presence in international markets, covering regions like Middle East, Far East, Australia, US,UK and Canada.

Desai Brothers Limited diversified into Ethnic Foods business in 2001 and the Food Division was formed, which is headed by Shri. Sanjaybhai J Desai. In July 2002, the Company acquired the Mothers Recipe Brand. Subsequently, the distribution has been further strengthened and the brand re-launched in the media. From Pickles, the Food Division also launched Blended Spices, Ready-to-Eat food, Appalams and Dal Papads. Several other new products categories are also in the pipeline under various stages of development. The Company has HACCP certified state-of-art manufacturing plant on the Mumbai Bangalore Highway. The Plant is ISO 9001:2000 and HALAL certified. The Company has a dedicated Research & Development team, taking into consideration the changing consumers preferences and developing the products, ensuring that the right ingredients and the right process of manufacturing are used for making each product authentic.

According to the Individual - Audited financial statement for the Year of 2011: Total net operating revenues increased with 12.75%, from INR 583.31 million to INR 657.66 million. Operating result increased from INR 99.93 million to INR 109.94 million which means 10.02% change. The Debt to Equity Ratio (Total Liabilities/Equity) was 114.21% compared to 111.92% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 2.01 to 2.09 when compared to the previous year. Current Industry CAGR is 11 %.

Established track record of promoters for more than eleven decades with a professional management. Bi-annual performance management system supplemented with review/feedback sessions that maintain a cordial work environment. Cross functional teams are supported by strong distribution network. Established brand in beedi industry; one of the larger players in the fragmented beedi industry with a leading position in Rajasthan Mothers Recipe enjoys a strong market position in the food processing industry. Healthy growth in revenues over the years supported by higher realization in beedi segment. Favourable financial profile characterized by strong return on capital employed and minimal debt. Strong liquidity profile supported by consistent accruals, sizeable cash balances and liquid investments

Distribution strategy through 300-strong direct selling network i.e. direct distributors and whole sellers. Brand extension strategy i.e. strong emphasis of networking with growers to leverage the existing brand strength. Line extension strategy like state of the art facility in Sarole which produces pickles, papads, appams, etc. Promotional strategy through extensive marketing network by advertising through free sampling, newspapers, roadshows, etc. with a heavy budget of approx. 10 crores.

Segmentation strategy through intensive research

Value for money Innovation/Creative strategy by tapping the changing lifestyles and social concerns in the tobacco industry and food businesses

 Beedi business, the main contributor to profits, remains vulnerable to Government policies, regulations and growing health awareness Beedi sales volumes have stagnated and growth is driven by price increases; additional challenges from other tobacco products and counterfeits Raw material prices in the foods business are vulnerable to climatic conditions and agriculture output limited by lower pricing power
The ethnic foods division (pickles, chutneys, savouries and other spicy items) constitute a Rs. 4,500 - Rs 5,000-crore business. Despite acquiring Mothers Recipe, a Rs. 60-crore brand, Desai Bros. Ltd. are witnessing slow growth rate of 1-2%. Food business has a long-gestation period and generally takes 5 - 10 years to get returns on investment. The company is looking to carve out for itself a sumptuous share of this market.

With a huge cash reservoir, we suggest further product diversification, fuelled through brand acquisitions/joint ventures like in the FMCG sector. SWOT ANALYSIS was done:

Strengths:

State of the art facilities Presence of established distribution networks in Maharashtra, Rajasthan, Karnataka and Andhra Pradesh Approx. 6 million customer base Strong R&D of the company with highly skilled human resource

Weaknesses:

Strong Competitors. Low exports level (at present). Changing consumption pattern.

Opportunities:

Large domestic market over a billion population. Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.

Threats: Changing tax and regulatory structure. Mimic of brands Entry of ITC in FMCG sector. Increasing cost of raw material.

Porters Five Forces Model

RIVALS: Consumer in this category enjoy multitude of choices. It does not cost anything for a consumer to buy one brand of shampoo instead of another, making the industry quite competitive.
SUPPLIERS: Consumer product faces some amount of supplier power simply because of the cost they incur when switching suppliers. Suppliers that do a large amount of business with these companies are also beholden to their customers. CUSTOMERS: Consumer faces weak buying power because customers are fragmented and have little influence on price or product. Considering buyer power retailers it is very high since they are able to negotiate the price with the companies. POTENTIAL ENTRANTS: Given the amount of capital investment needed to enter certain segment in house hold consumer products, the threat of new entrant is fairly low. Whether the new entrant can get its products on the shelves of the same retailers as its much larger rivals. THREAT OF SUBSTITUTES: Within the consumer product industry, brand succeeds in helping to build a competitive advantage, but even the pricing power of the brands can be eroded

Strong Leadership Competencies

Build Organizational Effectiveness

Develop efficient Control Systems

Scaling Up

Investment in Capital markets

After the identification of the process gaps and the analysis of the collected data, Related diversification is suggested since there is a strategic fit with the new venture by capitalizing on the strengths/competitive advantage already established. Other advantages are: realizing economies of scale, using the shared marketing and manufacturing skills with easy access to R&D and new capabilities.

Strong Leadership Competencies for careful strategic planning of formalizing the Mission, Vision and Core Values to facilitate effective strategy execution
Identifying and solve conflicting business policies across the various divisions to achieve Organizational effectiveness Establishing efficient control systems to mitigate the identified and unforeseen risks Multilevel approach of Scaling Up through Expansion (branching, decentralizing, restructuring, etc.), Replication (grafting, diffusion, etc.) and/or Collaboration (JVs, Formal Partnerships, Strategic Alliances, Networking, Brand Acquisitions, etc.) Investment in the capital markets is sure to give them a return which would be better than the current CAGR that they are earning, but would entail huge risk and is also an intermediate solution rather than a long term solution. This will help to also diversify their financial portfolio to protect against losses.

The process of strategy formulation will be multilevel i.e. at the three organizational levels: headquarters (corporate strategy), division (business strategy), and department (functional strategy). The planning processes leading to the formulation of these strategies can be done in a parallel fashion as corporate planning, business planning, and functional planning. Detailed process maps (for key processes) will be prepared, listing the key interface points, responsibility matrix for personnel, organization structure change, KPIs/KRAs at every level, MIS and reporting requirements. Workload assessment on the basis of changed roles and responsibilities, redesigning the organization structure on the basis of workload assessment Risk Mitigation by monitoring & reporting of lags/gaps, control effectiveness rating for key controls, identify and prioritize issues with agreed action plan for remediation and implementation
Documentation of system evaluation and business integration, feasibility analysis, cost-reduction plan. Strategic involvement in restructuring plan factoring in manpower structuring, process redesign including performance monitoring system on the results of implemented strategic moves

Detailed process maps (for key processes) will be prepared, listing the key interface points, responsibility matrix for personnel, KPIs/KRAs, MIS and reporting requirements Monitoring & Reporting on: Control gaps, control effectiveness rating for key controls. Identified, prioritized issues with agreed action plan for remediation and implementation Workload assessment on the basis of changed roles and responsibilities, redesigning the organization structure on the basis of workload assessment Documentation of system evaluation and business integration, feasibility analysis, cost-reduction plan. Strategic involvement in restructuring plan factoring in manpower structuring, process redesign including performance monitoring system on the results of implemented strategic moves