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Khandelwal food products
Batch: 2013-2015
Name: Akshay Chauhan Name: Ms. Monika Sharma
Enrollment No. 10425103913 Designation: Assistant Professor




I hereby declare that this project titled CHALLENGES IN BUSINESS PLANNING AND
DEVELOPMENT AT KHANDELWAL FOOD PRODUCTS submitted by the undersigned to
MANAGEMENT EDUCATION & RESEARCH INST'ITUTE has been carried out by me. Further I
declare that this is my original work carried out under the guidance of Ms. Monika Sharma in partial
fulfilment of MBA Course for the award of degree.

All the contents of the project report are true and to my best of knowledge has not been submitted earlier to
any other university or institution for award of Degree / Diploma / Certificate or published anytime earlier.

Akshay Chauhan



With immense pleasure, I would like to present this project report for KHANDELWAL FOOD
PRODUCTS. It has been an enriching experience for me to undergo this project at KHANDELWAL
FOOD PRODUCTS, which would not have been possible without the goodwill and support of the people
around. As a student of MANAGEMENT EDUCATION & RESEARCH INSTITUTE i would like to
express my sincere thanks to all those who helped me during my programme.
Words are insufficient to express my gratitude towards Mr. AlokKhandelwal, CEO of Khandelwal Food
Products who guided me and helped me at every step whenever needed.
At last but not the least my grateful thanks is also extended to Asst. Prof. Monika Sharma & my thanks to
all my faculty members for their proper guidance and assistance extended by them. I am also grateful to my
parents, friends to encourage and giving me moral support.
However, I accept the sole responsibility for any possible error of commission and would be extremely
grateful to my readers of this project report if they bring such mistakes to my notice.

Date: Akshay Chauhan


































Today the business environment is rapidly changing in this competitive environment the popular trend is
also striving for maintaining its positions therefore it become essential for the companies that they should
know about customers tastes and preference.
Regarding a particular product it is of almost necessary to know the consumers satisfaction to the value
offered by the company in case of dissatisfactory result it is essential to ascertain whether the dissatisfaction
is for the entire product or part of it is and what value do the consumers expect from it?
I have great pleasure in preparing this project of Khandelwal Food Products. a person aspiring to enter in
management profession must have practical knowledge of the subject. The objective of industrial training is
to develop practical knowledge in student as a supplement to the theoretical study of management in general
as well as industrial. It provides foundation to students to pursue a career in this field.
The industrial training is the most exciting experience of the education. Every person needs some changes
from the routine education. Every person needs some changes from the routine education. For this training,
industry selected me to analyse the products and the working of the company.
This training and research will provide the relevant information to the organization about consumers
attitude towards their products and services. The research work is sincere effort to find out the ultimate
requirement of consumers for the betterment of the organisation.
I have tried my best to represent all relevant data and information relating to my project work. I hope this
report will serve the purpose of the readers.

Akshay Chauhan



In todays competitive world while entering in the market it is very necessary to have a good knowledge of
the potential of a particular market. The information regarding the activities of competitors existing in the
market so that we can plan our each activity according to that. It is also necessary to retain the existing
customers apart from attracting the new customers.
Khandelwal Food Products

Challenges in Business Development and Planning at Khandelwal Food Products

The primary objective was to reach wellness industries such as Apollo, Cadilla Healthcare, etc. to
brief them about the company and its products. For this I along with a companys dealer went to
Jaipur and visited Morarka Foundation.
Secondly, worked upon the website of the company and for this I had a conversation with India mart
(looks after their website) and sent them a mail stating all the changes that had to be made in the
Thirdly, discussed about the new packing and packaging of some products.
Fourthly, I looked after the internal day to day affairs of the company as the manager was on leave
for 4 days.
Fifthly, Travelled with Mr. AlokKhandelwal to different places such as Allahabad, Lucknow,
Gorakhpur and learnt how he deals with his existing clients.

I have find out that the company Khandelwal Food Product has a high potential in the market and a great
future. The people working at the Khandelwal Food Products are very much helpful in all areas. Every time
they come to me and told me that they are available at any time for me for anything, which really boost me
and motivates me towards my goal and objectives. The culture of Khandelwal Food Products is very much
I completed my project on june10, 2014 and during my project I have achieved my all objectives of my




The company Khandelwal Food Products is established in the year 1999 anddeals in the products of Amla,
Jmaun and Bael. The motto of the company is to provide the best quality food products to the people whivh
will be beneficial for their health.
Following are the benefits of the products offered by the company:

Other names:
Indian gooseberry, Bhumiamla, Bhumyamalki, Amlaki, adiphala, dhatri, amalaka, amali, amalakamu,
usirikai, Anola, nellikai, Malacca tree, nillika, nellikya, emblic are the other names used for the Amla.
Amla is the medium size deciduous plant. It grows to the height of 8-18 meter. It has crooked trunk and
spreading branches. Its flower is yellow greenish in colour. The fruit is spherical pale yellow with six
vertical furrows. The mature fruits are hard and do not fall for the gentle touch. The average weight of the
fruit is 60-70 g. it has a gray bark and reddish wood. Its leaves are feathery, linear oblong in shape and
smell like lemon. Its wood in hard in texture. It wraps and splits when exposed in the Sun or in the
excessive heat.
It is planted through the deciduous of tropical India and on the hill slopes up to 2000 meter. It is
commercially cultivated in the states of Uttar Pradesh in India. It is also grown in Tamil Nadu, Rajasthan,
and Madhya Pradesh also.
Cultivation Methods:
Amla can grow in light as well as the heavy soils.it is grown under the tropical conditions. The young plants
are protected from the hot winds as they dye easily. Amla is generally propagated through seeds. It requires
proper sunlight. It is irrigated during the monsoon season. It starts bearing fruits in seven years from the
day of planting.
Medicinal uses:
In traditional Indian medicine, dried and fresh fruits of the plant are used. All parts of the plant are used in
various Ayurvedic/Unani medicine ( Jawarishamla) herbal preparations, including the fruit, seed leaves,
root, bark and flowers. According to Ayurveda, amla fruit is sour and astringent in taste, with sweet, bitter
and pungent secondary tastes. Its qualities are light and dry, the postdigestive effect is sweet and its energy
is cooling. The fruit is the richest source of Vitamin C and is a diuretic, aperient, Laxative and hair dye. It
cures insomnia and is healthy for hair. It is used as cardio protective, useful in haemorrhage, menprhagia,
leucorrhoea and discharge the blood from uterus. Amla powder and oil are used traditionally in Ayurvedic
applications for the treatment of scalp. Amla powder improves immunity and gives physically strength. It

improves complexion and removes wrinkles. Amla is also used to treat constipation and is used as a cooling
agent to reduce the effects of sun strokes and sun burns.
Culinary use:
Particularly in South India, the fruit is pickled with salt, oil and spices. Aamla is eaten raw or cooked in
various dishes. In Andhra Pradesh, tender varities are used to prepare dal and amlekamurabbah, a sweet dish
indigenuous to the northern part of India (wherein the berries are soaked in sugar syrup for a long time till
they are imparted the sweet flavour); it is traditionally consumed after meals.
Other use:
It is the main ingredient used in shampoo. Amla oil is used the entire world. Amla is used in sauces, candy,
dried chips, pickle, jellies and powder. It is even used in dyeing industry. It extract is popularly used in the
ink. Amla wood is commonly used in firework.
Cultural Importance:
Amla has been regarded as the sacred tree in India. It sin worshipped as the Mother Earth and is believed to
nurture humankind because the fruits are very nourishing. It stimulates spiritual purity. KartikMahatama
and VratKaumudi order the worship of this tree. Its fruits and flowers are used in worship. In Sanskrit
Buddhist tradition half an amalaka fruit was the final gift to the Buddhist sangha by the great Indian emperor
Asoka. This is illustrated in the Asokavadana in the following verses: A great donor, the lord of men, the
emnentMaurya Asoka, has gone from being lord of Jambudvipa[India] to being lord of half a myrobalan.

Jamun is indigenous to India. Its tree is small and evergreen. Therefore it is generally grown as avenue tree
or as a wind break. Though the fruits are liked by all and sell at a high price, but it is still not grown as an
orchard tree. Jamun is found all over India.
Jamun fruits are a good source of iron and are said to be useful in troubles of heart and liver. The seeds of
jmun are an effective medicine against diabetes and their powder is widely used in India to control diabetes.
There is no improved variety for commercial cultivation. The most common type grown in north India is
known as Raja Jamun. This is a large-fruited type having a oblong fruits of deep purple colour. A type
having large- sized fruits is known as Paras in Gujarat. Another type found in Varanasi has no seed. A
selection with desirable traits has been located by the agricultural university at Faizabad. It has been named
by them as NarendraJamun 6.
Jamun is propagated by both seeds as well as vegetatively. NarendraJamun 6 is usually multiplied by seeds.
The seeds have no dormancy; hence fresh seeds can be sown (within 10-15 days) 4-5 cm deep at a distance

of 25cm x 15cm. The seeds germinate in 10-15 days after sowing. The seedlings become ready for
transplanting in spring or next monsoon. Its seeds show polyembrony up to 30-40%. Therefore nucellar
seedlings can be used to produce true-to-type plants.
Seedlings plant bear fruits of variable size and quality. Therefore, vegetative method is desirable for
propagation of improved or selected types. Budding is most successful. It is done on one year old rootstock
having about 10 mm thickness. Patch and forkert methods of budding give more than 70% success if
performed in March. In low rainfall area, July-August is ideal time for budding.
Cultural and religious significance:
According to Hindu tradition, Rama subsisted on the fruit in the forest for 14 years during his exile from
Ayodhya. Because of this, many Hindus regard S.cumini (jamun) as a fruit for God, espically in Gujarat,
India, where it is known locally as jamboon.
Nutrients and phytochemicals:
Nutritional information for S.cumini leaves and fruit are detailed here.
Java-plum,(jambolan), raw
Nutritional value per 100g (3.5 oz)
Energy 251kJ (60 kcal)
Carbohydrates 14 g
Dietary fiber 0.6 g
Fat 0.23 g
Protein 0.995 g
Thiamine (B1) 0.019 mg (2%)
Riboflavin (B2) 0.009 mg (1%)
Niacin (B3) 0.245 mg (2%)
Vitamin B6 0.038 mg (3%)
Vitamin C 11.85 mg (14%)

Trace metals:
Calcium 11.65 mg (1%)
Iron 1.41 mg (11%)
Magnesium 35 mg (10%)
Phosphorus 15.6 mg (2%)
Potassium 55 mg (1%)
Sodium 26.2 mg (2%)
Other constituents:
Water 84.75 g

Uses OfJamun In Disease:
The following are some of the health benefits of Jamun
It is very good to treat Gout. Boil the bark in water till the water thickens. Cool and apply this
watery paste on the affected part to relieve pain and inflammation.
In Diabetes, jamun juice and mango juice mixed in equal quantities.
To remove body weakness, treat anaemia, increase memory and remove sexual weakness, take 1 tsp
each of jamun juice, honey and amla juice every day in the morning.
Eating jaumns stimulates the liver and relieves bladder problems.
To increase appetite and treat constipation take vinegr made of raw jamun fruits with equal quantity
of water, twice a day.
To treat stomatitis and mouth and teeth problems apply jamun juice and also drink it.
For treating pimples, grind the dry seeds. Add some cows milk and apply on the pimples while
going to bed at night. Wash in the morning. Continue for a few days.
For diarrhoea, mix a little rock salt in jamun juice and drink.
For acidity, eat jamun with black salt and roasted cumin seed powder.
Risk of heart attacks can be reduced by eating jamun regularly as it prevents hardening of the

For boils and other skin disorders apply some jamun seeds mixed with a little oil on the affected area.
Some Precautions:
Never eat jamun on empty stomach.
Never drink milk after consuming jamun.
Do not eat them in excess as it may cause body aches and fevers.


The bael fruit, in actuality, is an herb with the botanical name of Limoniaacidissima. It has other
names like wood apple, elephant apple, and monkey fruit. In soe part of the world, this fruit is called
elephant apple because its favourite food of elephants, while in other areas, it gets the name wood
apple because of its hard wooden shell. It is actually considered sacred by Hindus, and is widely
cultivated and eaten in India. Bael or bilwa is important tree in Indian culture, and is believed to be
known to Indians since the time the Vedas were composed during 2000 BC 800 BC. Bael or bilwa
tree is planted in and around most temples in India. The tree has been mentioned in Ayurvedic texts
like CharakaSamhita for its medicinal properties. Their shell are tough, and the inside is brownish
pulp and small white seeds. The pulp can be eaten raw, but it is popularly scooped out and frozen, or
made into jam. It can also be mixed with coconut milk for a delicious, health beverage, or frozen
into ice cream.

Chemical Constituents:

The biochemicalfound in Bael include skimmianine, aegelin, lupeol, cineol, citral, citronellal,
cuminaldehyde, eugenol, mermelosin, luvangetin, aurapten, psoralen, marmelide, fagarine, marmin
and tannin. Parths of the tree are used for medicinal purposes include fruit- both ripe and unripe,
seeds and the leaves.

Nutritional Facts of Wood Apples:

The vast array of health benefits that are attributed to wood apples are mainly due to their nutrients,
vitamins, and organic compounds, including their tannins, calcium, phosphorous, fiber, protine and

Health Benefits Of Wood Apples:

Bael fruit also has great medicinal value for those who consume it, whether they are aware of these
benefits or not! Lets take a closer look at the extensive health benefits of this interesting fruit!

Good for Digestion:Bael fruit is great for digestion because it helps to destroy worms in the
intestine, and is a good remedy for digestive disorders. It is also recommended as a remedy for
chronic dysentery. The trunk and branches of bael tree contain a gum-like substance called Feronia
gum. This is commonly used for curing diarrhea and dysentery. Bael fruit is also recommended for

people with peptic ukcer or piles since bael leaves contain tannin, which is known to reduce
inflammation. The laxative property of wood apple also helps to avoid constipation and the
subsequent, pain, discomfort and associated health risk of that condition. This combined with the
antifungal and antiparisiticactivites, make bael fruit ideal for increasing digestive health.

Blood Cleanser: As little as 50mg of bael fruit juice mixed with warm water and sugar is
recommended for blood purification and the removal of toxins that can cause extensive damage to
the body. This reduces the strain on the liver and kidneys, which are the normal lines of defense
against toxins.

Effective for Ear Aches: The root of the bael tree is integral in the management and treatment for
ear conditions and pain.

Prevention of Scurvy: Deficiency of vitamin C (ascorbic acid) causes scurvy. Since bael fruit is
rich in vitamin C, it can guarantee that you do not develop scurvy, a potentially life-threatening
condition. This high level of vitamin C also increases the strength and potency of the immune
system, thereby protecting people who consume wood apples from a variety of microbial and viral

Good for Diabetic Patients: The Feronia gum, contained in the trunk and branches of the bael
tree, counteracts diabetes by reducing the severity of the condition and helps to manage the flow,
secretion, and balance of sugars in the bloodstream. By managing the insulin and glucose levels, it is
possible to prevent the spikes and plunges that can be so dangerous to diabetics.

Relief from Respiratory Problems: Leaves of the bael fruit tree help people avoid chronic or
recurring colds and related respiratory conditions. They also help in curing sore throat and treating
chronic cough due to its function as an expectorant. It loosens phlegm and helps eliminate the
buildup in the respiratory system.

Energy Booster: One hundred grams of Bael fruit pulp provide 140 calories, and the nutrients found
in that amount boost organ activity and metabolic speed. This all results in additional energy and
reserves in the body, the high protein content also means that the body can heal faster and the muscle
can grow stronger, further boosting energy reserves.

Good for Kidney Conditions: regular consumption of wood apple is recommended for people with
kidney complaints. Considering the detoxifying powers of wood apples, the kidney and the liver can
be protected if the correct organic compounds from wood apples are kept at healthy levels.

Liver Health: As a good source of beta-carotene wood apples also cure liver problems. They
contain thiamine and riboflavin, both of which are known as liver health boosters, this fruit also
functions as an ingredient in cardiac tonics.

Cure Snakebites: In Ayurvedic treatments, all parts of the wood apple plant are used to cure

Protection Against Malaria: The pulp of bael fruit trees has also been used as a cosmetic
component by women in Thai-Myanmar border area. This area is also frequently affected by dengue
and malaria, but research studies have suggested that by applying the mixture of this pulp and
repellents on the skin of pregnant women may be beneficial in protecting them against malaria.

A Word of Caution:

Like any other food/fruits, we have to take some precautions when consuming the Bael fruit.
Excessive consumption of Bael fruit causes flatulence in the abdomen so people with gastric troubles
should be careful. Also, if you have never consumed bael fruit before, try a small amount and see
how your body reacts. Anything can be an allergen, so it is better to start small and work your way
up to larger portions once you know that your system handles it well.



About The Company



Company Profile
Basic Information:
Nature of Business Manufacturer
Year of Establishment 1999
Ownership Type Sole Proprietorship

Leading Manufacturer and Exporter of Amla Food Products, Bael Products, Jamun Products, AmlaMurabba,
Bael Candy, Amla Juice, Jamun Bar, Bael Preserve, Amla Chutney, Amla Mouth Freshener, Bael Powder,
Jamun Vinegar, AmlaSupari.
Having years of experience and expertise, we offer a wide range of Amla, Bael and Jamun Based Food
Products.Our ranges of products are well known for their superior tastes, aroma, nutritional value and longer
shelf life. These food products are in high demand in both the national and international markets. For
maintaining consistent quality in our food products, our food analysts conduct intensive research ensuring
our clients of getting the best range of products at competitive prices. Catering to the emerging demands of
quality food products in the instant food market, we adapt latest technology and updated manufacturing
processes to offer quality food products. Some of the products offered by us include:
Amla Food Products:
Amla Candy,
Amla Juice,
Amla Powder,
Amla Chutney,
Amla Mouth Freshener,
We also provide Herbal Food Products like:
Bael Candy,
Bael Powder,
Bael Preserve
Jamun Bar,
Jamun Vinegar,
Jamun Bar


Established in the year 1999, we Khandelwal Food Products, are one of the prominent manufacturers and
exporter of Amla, Bael and Jamun based Food Products. Our range includes Amla Food Products like
AmlaMurabba, Amla Candy, Amla Juice, Amla Powder, Amla Chutney, AmlaChurna, Amla Mouth
Freshener, AmlaSupari. We also provide Herbal Food Products like Bael Candy, Bael Powder, Bael
Preserve andJamunProducts like Jamun Powder, Jamun Bar, Jamun Vinegar. Our extensive domain
experience and the involved production procedures enable us to offer pure and high quality food products to
our clients.
Further, we have gained widespread recognition for our food products that are known for their benefits in
many common health problems, which are caused by stressful modern living. Our fair and transparent
policies in our business dealings and international standard of products offered at most competitive prices
helps us in maintaining a good clientele from all over the world. This helps us in exporting our range of food
products in India as well as abroad. Our main markets outside India are:
New Zealand,
East Asia,
Middle East and others.
Moreover, we are led by a professional team, who assist us in offering various food products. Our food
analysts and other supporting staffs, constantly research for new recipes that are more beneficial and tastier.
By constantly researching new recipes for beneficial and tastier products, we offer an affordable choice of
healthy foods to beat the attack by stressful modern living.
Our company is engaged in offering a wide range of Amla, Jamun and Bael Based Food Products, which are
available in the form of powder, candies and juices. Known for their purity and natural forms, our range of
food products are very useful in the various aliments of the body. These are very nutritive and beneficial for
our health and related problems.
Amla Food Products Murabba

Mouth freshener
Bael Products Candy
Jamun Products Powder

Further, our range of food products is manufactured from fresh fruits that are procured from reliable sources
that are well connected with the farms. These are processed using latest machinery under hygienic
conditions. We ensure that all our products are tested by well qualified quality controllers on various
parameters. Thus making them distinctive from other products.
Some of the distinct features of these food products are as follows:
Mesmerizing aroma
100% natural & pure
High nutritive value
Longer shelf life
Available in cost effective prices


Benefits of Amla:
Amla is a herb, which is used for making ayurvedic medicines. It helps to rejuvenate all the organ systems
of the body and provides strength.
Some of the other benefits of our Amla Based Food Products are:
Helpful in skin diseases
Promotes glow on skin and delays wrinkles or loosening of skin
Stimulates hair follicles and promotes hair growth & also improves texture of the hair
Prevents premature greying of hair and dandruff
Acts as an effective natural cure for indigestion, acidity, constipation, gastric troubles and flatulence

Helpful in improving liver function
Helps in lowering cholesterol and blood sugar level
Provides nourishment to the nerves and is helpful in paralytic conditions
Works as brain tonic and helps to alertness and memory
Helps in improving eyesight

Benefits of Bael:
Bael helps to overcome health problems like:
Diarrhea and dysentery
Peptic ulcer
Respiratory disorders

Benefits of Jamun:
The benefits of our range of Jamun based food products are :
Prevent excessive urination or sweating and also blood-purifier
Control diabetes
Used in diarrhea, dysentery and also in conditions when the patient passes blood-mixed stool

We are a renowned manufacturer and exporter of our range of Amla, Bael and Jamun Food Products. Our
range is appreciated for its freshness and high nutritional value.
Our range of products is widely used by the:
Pharmaceutical industries
Ayurvedic& cosmetic industries

Ready to eat food industries
Our team consists of expert and knowledgeable personnel who have expertise in the field of food processing
and preserving. The team works in co-ordination with each other on the single goal of providing complete
satisfaction to our clients. Further, they are also trained to understand the varied aspects of industry and other
involved procedures. This helps them to procure pure range of Amla, Jamun, Bael and Preservatives. It also
ensures production of qualitative food products, which are beneficial for health.
Some of our team of experts is:
Food analyst
Quality checking personnel
Other supporting workers
Administrative staffs

The salient features that distinguish us from the other market players include:
Well developed infrastructural set up
Our high quality of packaging standards, restrict entry of moisture and ensuring purity of our products
Team of industry experts
Wide range of products to choose from
Quality proven products
Products available at competent rates
On time delivery schedules
Our Quality Assurance:
Being a quality conscious organization, we are committed to provide our clients a quality range of Amla,
Jamun and Bael based food products. To achieve high standards of quality, our well qualified and
experienced team of quality controllers test our products on well-defined parameters. For this, we conduct
visual tests, chemical analysis and also many innovative checking measures on randomly picked semi-
finished and finished range.

Further, our natural Amla, Bael and Jamun are selected and processed using scientific and most modem
techniques. We guarantee healthy and hygienic manufacturing processes and zero adulteration in all our
products. The various measures undertaken by us enable us to maintain high standards of quality and also
help to preserve the original flavor of the fruits.

The various testing processes are performed to check the following parameters:
Nutritive value
Shelf life
Particle size


We have a state-ofthe-art modern infrastructure facility that is well equipped with latest machinery and
updated technology. This helps us in providing a variety of products from Amla, Bael and Jamun as per the
demands of our customers.
Moreover, our infrastructure is well segregated into various sections like manufacturing unit, warehouse and
packaging unit. This division ensures that different business operations are carried out in a smooth manner.
Further, our sound infrastructure is well-equipped with the latest and advanced equipment, which enable us
to fulfil the bulk requirement of our clients.

We have a well maintained research and development unit that comprises a team of experienced personnel.
This team keep works in tandem with their counterparts and remain abreast of latest technologies. The
researches carried out by them, aids us in bringing further improvements in the products nutritional value,
sweetness and shelf life.

The laboratory is fully equipped to test and analyse all the manufactured products. Our well - equipped
laboratory is installed with all analytical facilities.

We have developed a spacious warehousing unit for the safe storage of our range of food products. The
warehouse is well segregated into various divisions thus enabling us to arrange our products separately for
safe identification, access and retrieval. This warehouse has a massive capacity, which helps us in storing
our product range in bulk.
Some of the facilities of our warehouse are:
Fire proof
Temperature controlled
Free from rodents
Resistant to heat and weather calamities
Further, for the safety of our products during transportation, we also package them using exporting quality
packaging material. Using the services of industry experts, we ensure that our packaging is sturdy, double
packed and labelled. Thus, ensuring the safety of the products. Apart from this, we also have tie-ups with
reputed logistic companies, which help us to meet the delivery schedules as per the shipping and custom
clearance schedules in real time.

National Productivity Council MSME Awards For Best Performance In Small Enterprise In 2008
U.P. Government awarded for small scale unit.
Pantnagar Agriculture University awarded for Best Product.
Narendra Dev KrishiVishwaVidayalaya awarded for Best Product.

Above all each and every customer are very well satisfied with the product and the quality.





Processing (canning, drying, freezing, and preparation of juices, jams, and jellies) increases the shelf
life of fruits and vegetables.
Processing steps include preparation of the raw material (cleaning, trimming, and peeling followed
by cooking, canning, or freezing).
Besides the revenue generation potential, fruit and vegetable processing has the largest employment
generation potential too.

Though India is the second largest producer of fruits and vegetables in the world, commercial processing of
these commodities is less than 2 per cent of production. In spite of growth in the post-reform period,
capacity utilisation of the food processing industry remains below 50 per cent. The industry already faces the
problem of meagre demand due to economic reasons and existing food habits. Increasing value addition
activities and processing, as recommended by an expert committee, will require huge investments. However,
as long as there is endemic poverty and low purchasing power, it is unlikely that the country can build a
heavyweight fruit and vegetable processing industry.

The Indian food processing sector acts as a valuable link between two core sectors of the economy -
agriculture and industry.Processing gives long shelf life and greater availability to farm produce. Processing
also successfully breaks the seasonal cycle of farming by enabling the end-users to have the product round
the year whenever and wherever they require with long shelf life. Food processing is considered as a sunrise
industry in India with great scope for major growth as a lot of potential is left untapped. Only 2% fruits and
vegetables, 35% milk, 21% of meat and 6% of poultry products are only being processed at present. The
Indian processed food market is estimated at Rs 4, 50,000 crore. The government's Vision 2015 for the food
processing industry aims at 10-15% of processing of the farm produce from the present 3%. Imagine the size
of the food processing industry if we are able to achieve that growth rate! Almost 30-35 % fruits and
vegetables go waste, amounting to more than Rs 50,000 crore, due to lack of post-harvest storage facilities
and other infrastructure.
The changing lifestyle and food habits driven by fast increasing nucleus families coupled with a hectic
working schedule have created a new domestic demand for processed foods. Globalisation of the economy
together with government incentives has created new opportunities in the export market as well.
The book, a compilation of articles written by experts and published in various professional magazines and
research journals, is divided into three sections. The first section, consisting of 8 articles, provides an

overview of the Indian food processing industry by discussing various facets of the industry such as
technology, retail environment, infrastructure, the changing lifestyles etc. Second II, also with 8 articles,
focuses on different sectors of the industry. The third section consists of 7 articles and illustrates the
experiences of a few companies.

The first article titled "Indian Food Processing Industry" is from Dun and Brad Street Information
Services India Pvt.Ltd. Though the industry has a great growth potential in view of the industry's
acquired prominence in recent years, the article discusses that lack of appropriate infrastructure,
inadequate quality control, and inefficient supply chain, high inventory carrying cost, high taxation
and high packaging cost act as constraints. Besides giving an overview of the industry, the article
also deals with the investment criteria, government policy/support and major players of the sector.
The second article "Processed Food - For the Changed Lifestyle" by I Satya Sundaram, highlights
how India wants to increase export of food trade by 2015 through increased production of fruits,
vegetables, food grains, milk, fish and poultry. The ready-to-eat food market is growing with
changing lifestyles of the rich. There has been an increase in the production of ready-to-serve
beverages and fruit juices and convenience veg.-spice pastes. However, domestic consumption of
value-added fruits and vegetables is low compared to primary processed food on account of higher
incidence of taxes and duties, lower capacity utilisation, high cost of finance, etc.
The third article "Emerging Technologies in Food Processing Sector" by V Thirupathi and M
Saravanakumar discusses how the Indian food processing industry is facing the problems of wastage,
use of obsolete technologies, inefficient methods and unskilled/non-technical persons. New
processing technologies and innovative packaging are also explained.
The fourth article "Refrigeration Industry in the Food Sector" by Ketan Thakkar is from Food &
Beverage News. The article discusses the rising importance of cold chains in order to increase the
shelf life and retain the nutritional values for a longer period. The fifth article "Packaging
Requirement for Raw and Processed Foods" by V R Sagar and P Suresh Kumar explains that
increased urbanisation, market and consumer needs for convenience and increased energy needs have
changed the profile of the packaging industry.
The sixth article "Processed Foods: Riding the Retail Revolution" by Amit Singh Sisodiya and
Madhupama Chakraborty says that food processing business in India is on the rise mainly due to the
retail revolution and newly emerged retail supermarket chains. It stresses that the robust food
processing industry is attracting many foreign players and the government need to come forward to
protect the interest of farmers. The seventh article "Designer Morsels" by H N Mishra highlights that
health foods, also called designer foods, are conceived as foods, which have therapeutic or
polyphylectic properties. The article says that the term nutraceutical is often confused with functional
foods. Functional foods/ nutraceuticals are classified depending upon the raw material used. Present
day consumers have become highly health conscious and several categories of functional foods and
beverages have been developed to meet their aspirations. The last article in Section I "Environmental
Standards for Food Processing Industry: Impact on South Asian Exports" by Simi T B says that
Indian share in world food trade is 1% and the main reason for this poor show is the rejection of food

products in the developed countries on the ground of environmental and safety standards. India is yet
to match with high quality conditions undertaken by developed countries with regard to food safety.

Section II also consists of 8 articles on different sectors of the food processing industry like Agro processing,
Dairy industry, Fish production and processing, Fruit beverages, Bottled water, Meat industry, Wine
industry and the Ready-to-Eat (RTE) food sector. Section III covers case studies of some top companies and
how they have distinguished themselves in the food processing sector. MTR Foods (RTE), Rasna (soft drink
concentrate SDC), Cadico India Ltd (contract manufacturing), Pepsi Caf Chino in India (coffee flavoured
cola), Amul Ice Cream and its marketing strategy, LijjatPapad are some of the success stories discussed in
this section. The last article titled "Act II: An Indian Experience," written by the Editors themselves is again
a case study and is very interesting.
The case study portrays the experiences of ATFL, the Indian affiliate of ConAgra Foods Inc., in marketing
its Act II brand popcorn and snacks in India. While ConAgra Foods of the US is the leading food brand of
the world, its expansion into India is made possible through the acquisition of a major stake in the erstwhile
ITC Argotech. It renamed the company Agro Tech Food Ltd (ATFL) which introduced three varieties of Act
II popcorn - microwave popcorn, instant popcorn and vending popcorn in India in 1999 and Act II snacks in
2003. While Act II popcorn was immediately accepted by the market, Act II snacks could not achieve the
desired success and subsequently had to be withdrawn from the market. The case study showcases the
experience of ATFL in designing the marketing mix strategies for Act II popcorn and how they showed
impact on the products' sales. ATFL emphasised more on R&D to develop new products and flavours.
The Editors have done a good job in selecting the articles that will be useful for management students,
professionals and the research community. It will serve as a reference book for those in the food processing
industry, though Section I is generally known to all, especially the food processors. Some articles were
written during the 2003-2006 period. Others are more than one-year old and the way the sector is growing,
several new developments might have taken place since then. But then there is no way of updating.



In this chapter the researcher has made an attempt to review the relevant literature pertaining to the study of
food processing Industry. Referring to the food processing industry many scholars have considered the field
of organizational practice as of having greater significance. The food processing industry in India over the
50 years of planned development has made dynamic progress, both in terms of number of units and
combination to the total food production.
With the development of the food processing industry, a number of problems arose from time to time, which
were mainly concerned with the management and government policies, labour and by-products, et.al. For
the healthy development of the food processing industry various government committees, experts,
researchers, agricultural colleges, universities, research institutions has contributed by publishing their
reports, findings, recommendations, after studying the problems and various aspects of food processing
industry, which are reviewed as follows.
1. Dr. Amiya Kumar Behera, in his Report on APO Multi-Country Study Mission on Rural-Based
Food Processing Industry has reported that poverty and unemployment in the rural areas are the two
most important challenges India faces. In spite of all the industrial development in the country,
agriculture still maintains about 70 percent of the population of the country. It is in the rural areas
again where 75 percent of the population of the country lives and they will continue to constitute at
least two-thirds of labour force. It is imperative therefore that the rural economy is improved, so the
burden of poverty can be lessened and the working population overflowing from the villages can be
absorbed in off-farm activities. The rural economy cannot be developed fully by improving only the
productivity of agriculture, although this will go a long way in improving the rural economy;
however, rural industries, subsidiary activity and food processing industry in particular, are of great
importance for a rapid transformation of the rural economy, in India. The economic status of this
population can also be improved by increasing non-farm activities, particularly rural food processing
2. Hans Megens in his article published in Indian Express, points out that India's potential in food and
agriculture is underestimated and opines that corporate can be helpful in wasteland development in
India. In some cases, the country will benefit by encouraging private sector firms to become primary
producers as well. India has over 100 million hectares of uncultivated and degraded wastelands
which is not generating any benefit either to the rural population or the country as a whole. Large
tracks of such land can be converted into productive cultivable land by an infusion of capital and
sophisticated technology to tap deep aquifers, install drip irrigation facilities and in some cases green
houses. The cost and technical input required to develop these lands may be far beyond the means of

small farmers in the area, but can be undertaken by agri-business corporations. In order to reach the
increased goals of food production, reduction of waste, more value added production and increased
exports, enormous investments will be necessary throughout the whole food & agro-chain. There is
ample opportunity to raise the level of processing if the necessary investments are made not only in
processing facilities themselves but also in the supply chain through which these products have to be
delivered at the gate of the processing facility. Investments in the infrastructure and logistics systems
are extremely necessary for that purpose.
3. Gregory Orriss, "India will benefit more by staying in WTO than by keeping out", FAO consultant
in India Gregory Orriss has extensive management & quality assurance experience in various sectors
of the food industry. He is a consultant of the Food and Agricultural organization (FAO) in India,
assisting the Government of India in further negotiations on the WTO agreement on agriculture.
Orriss was at Bangalore to attend a seminar on Indian exports cosponsored by the FAO. Orriss in his
interview with India mart has expressed his views on Indian food processing industry. India will
benefit more by staying in WTO than by keeping out. You have to be positive. With globalisation
Indian products gain access to the international markets. India has several products like spices that
can benefit from this. On the other hand India also will be required to open up its market. This
might have an adverse impact on certain domestic industries. To make up for this the WTO gives
developing nations like India a larger time frame to open up markets. The industry has to have a
long-term quality perspective and safe processing & manufacturing systems. The government should
set firm standards; provide infrastructure (labs, inspection facilities etc) and guidance. The
international community also needs to step forward. It is a matter of great concern that, the countries
which reject/complain about products made here dont back it up by offer of financial & technical
assistance. India has great technical & scientific potential; setting up systems should not take too
long. Most importantly, Indians are great traders; there is no body better in the world. All that is
needed is awareness about WTO & its requirements.
4. J. Hawthorn, the former President of the IUFoST, observed at the Fifth World Congress the
following developments that over the past hundred years food science and technology have altered
the structures of our societies. The most obvious example is that, whereas a century ago three-
quarters to nine tenths of our citizens lived by agriculture and on the land, [today] in the developed
countries at least the work of one farmer feeds forty to fifty others. This is not merely due to
agricultural science but equally to the back-up of our food processing industries. This process is still
continuing and has repercussions on the socio-economic situation of the agricultural producer. Its
effects have been most marked in the developed countries, particularly in the United States, Western
Europe, and Japan. Agricultural and food production have increased in all countries, both in absolute
terms and in terms of per capita output. The number of people engaged in the agricultural sector has
drastically diminished. On the overall average, the share of economically active people engaged in
agriculture has been reduced. While the number of full-time farmers has decreased, the numbers of
farmers with additional income from non-agricultural sources and of part-time farmers have
increased. There is a general decrease in the number of farm holdings. Smaller holdings are
gradually disappearing. There has been a continuous trend in the transformation of agriculture from
a labour-intensive to a capital-intensive enterprise. While certain saturation seems to have been
reached in many countries with regard to the number of farm machines, there is a trend towards more
sophisticated equipment.

5. Hans Meliczek, Senior Officer, Agrarian Reform and Rural Development, Food and Agriculture
Organization, Rome has contributed to the food science and technology to the transformation and
social management of rural areas. The primary objective of food science and technology is to
provide "crowded populations. With the kind and quality of food they demand at all times of the
year". Seen from this point of view, tremendous progress has been achieved in recent years in the
field of food production, processing, storage, and distribution. The main beneficiaries of these
developments have been the consumers living in urban centres. For most of them food preparation
has become easier, in many cases cheaper, and in some cases of higher quality. The purpose of his
review was to analyse how and to what extent these developments in food science and technology
have influenced the situation of the agricultural producer and how they have contributed to the
transformations and changes in rural areas. In this context also want to appraise the role of the food
processing industry, which like any other large-scale industry, is oriented towards the maximization
of financial gains and profits. Frequently, this industry has promoted the development of scientific
and technological processes to produce foods of elaborate quality to titillate the palates of already
well-fed consumers. Frozen "television dinners" and similar articles to be found in supermarkets in
the West may appear to observers from developing countries to represent an extravagant waste of
scientific knowledge and technological skill. The development of such products has been facilitated
by the demand of a financially potent group of consumers, which regulates the food market.
However, in the face of the depressing poverty of agricultural producers in the Third World his of
opinion to deplore, as has been done at previous congresses of the International Union of Food
Science and Technology (lUFoST), that there has been little research on food legumes, roots, tubers,
and rain-fed rice, which are staple foods in many developing countries.
6. John E. Davies, Virgil Freed, and Fred Whittemore, in their edited book on An Agromedical
Approach to Pesticide Management: Some Health and Environmental Considerations, states that it is
"designed to assist agromedical planners and supervisors of food production and human health
programs as well as the lower echelons of the agromedical infrastructure in the developing
countries." It advocates an "agromedical approach" to the problems of pesticide use which are of
mutual concern for agriculture and health: pest resistance to pesticides, human and animal
poisonings, persistence of certain chemicals and chronic pesticide exposures (occupational and
incidental), and disposal of pesticide containers as well as disposal of outdated stocks of pesticides.
The need for effective means of pest control is very great. As the book's first chapter points out, "A
variety of pests reduce agricultural productivity by as much as 50% or more and are also carriers of
human disease" (p. 3). However, the use of pesticides has been a two-edged sword. The book's
foreword makes this point eloquently: The impact of the stark contrast of competing needs must
surely be one of the most vivid impressions encountered in tropical areas. The ever present threat of
vector-borne and parasitic diseases, the obvious manifestations of kwashiorkor, marasmus, and
blindness stand side by side with human and environmental suffering wrought by the very agents
used to fight these scourges. It is this tragic paradox, largely the result of inadequate safety
technology transfer, which has prompted us to develop this training program. The book is written
clearly and has a convenient format, including summaries at the beginning of each of its 21 chapters,
which have been divided into three parts. The first part, "The Agromedical Approach - General
Considerations," contains material on the nature and extent of the problems with pesticide use,
epidemiology of pesticides, and toxicological and environmental implications of pesticide resistance.
The second part, "Prevention, Diagnosis, and Treatment of Pesticide Poisonings," covers a wide

range of topics of interest to many groups, including medical-care personnel, agricultural extension
workers, and those immediately concerned with the well-being of workers who may be directly
exposed to pesticides. Among the chapter topics are pesticide toxicity and mode of action, first aid
procedures, clinical aspects of acute poisoning, laboratory verification, and worker protection.
Planners and members of government agencies will be among those most interested in the third part
of the book, "Agriculture, Public Health, and Environmental Considerations," in which pesticide
application, transport, storage, and disposal are discussed as well as regional differences in
agromedical problems and implementation of agromedical concepts.
7. Abraham Stekei, in his book Iron Nutrition in Infancy and Childhood. As this book states, "This
volume will be of interest to paediatricians, obstetricians, internists, and general practitioners, as well
as specialists in nutrition and epidemiology." The subject is of pressing importance, because, as the
book points out, iron deficiency affects hundreds of millions of people throughout the world,
especially those in developing countries, where its causes include dietary deficiencies and parasitic
infestation. Although precise estimates of prevalence are not available, one chapter presents the
following statistics, among many others, on the prevalence of anaemia among infants and children:
82 per cent for children four years of age and under in Bangladesh, a range of 37.8-73 per cent
among children between six months and six years of age in a low socio-economic but well-nourished
group in Indonesia, and 23 per cent among kindergarten and nursery school children in China (pp.
61-74). Recently the many functional consequences of iron deficiency, with or without anemia, have
begun to be documented, including impaired immune competence, cognition, physical work capacity,
and other functions (pp. 45-59). The book contains chapters on iron requirements, laboratory
diagnosis of iron deficiency, functional implications of iron deficiency, prevalence of nutritional
anaemia with emphasis on developing countries, iron nutrition in low-birth-weight infants, iron and
breast milk, availability of iron from infant foods, bioavailability of different iron compounds used to
fortify formulas and cereals, and prevention of iron deficiency. There are workshop discussions at
the end of almost all chapters.
8. George Wadsworth, the Diet and Health of Isolated Populations. Valuable epidemiological lessons
about nutrition and health are to be learned from populations that have been isolated from the effects
of Western development. Unfortunately, such information is fragmentary and difficult to obtain.
This book brings together such information as may be available on the mode of life of isolated
groups from both the dry and humid tropics to the Arctic, with a review of their foods, diet, lactation
and weaning practices, growth rates, and disease distribution. After introductory chapters on the
nature and causes of health and disease and what is known of ancient man from archaeological
evidence, the book examines a series of peoples, obviously not totally isolated, or the information
would not have been obtained: the San of the Kalahari in Africa, the indigenous people of Papua
New Guinea, the Australian Aborigines, and the Arctic Eskimos. The next six chapters use this
information and that available for some other isolated societies to discuss growth, form, and size;
physical prowess and physical performance; infective disease; child mortality; cardiovascular
disease; and cancer. The wide range of foods consumed by early hunter-gatherer populations and by
most isolated populations today is emphasized. The modern departure from such a diet pattern along
with a host of other environmental changes is discussed in relation to differences in health and
disease patterns between isolated and contemporary industrialized societies. It remains to be seen
whether humankind will survive as well and for as long under these new conditions as it has for a
million years or more in the past.

9. B. M. Bhatia in his Study on India's Food Policy: Institutions and Incentives in India's Food
Security Structure. This small paperback monograph undertakes to describe and analyse the role that
the government institutions and the incentives or disincentives they have created have played in India
in promoting food production and the food economy over the 36 years since independence. A
historical perspective is applied to the current food situation and the key issues it raises for current
policy-makers and planners. Even though the mean rate of food production has kept ahead of
population growth over this period, the per capita growth rate trend is downward, posing a threat for
India's future leaders. The book traces the policies and factors that led to the peak years of 1964-65
and 1970-71 and the virtual stagnation since 1978-79. It examines not only the production of food
but also the public food distribution and procurement systems as well as the growth of consumption,
and includes very useful statistical tables. The conclusions and policy implications will be of interest
to persons concerned with food and nutrition policy and planning in all developing countries.
10. K. T. Achaya in his published book about Everyday Indian Processed Foods. Outlines the
chemistry, technology, and nutritional quality of the entire range of foods consumed in India, from
the primary rice, wheat, and vegetable oil to the more sophisticated processed foods such as bread,
biscuits, Vanaspati, chocolates, pickles, cheese, and other milk products. The chain of
transformation, preparation, sterilization, and packaging is presented according to scientific
processing with a dash of history, geography, and sometimes and exotic description; for example,
the appetizing cheeses and wines, justified by the inherent fascination of their science and
technology. The author combines information on the chemical, biological, and engineering
principles that go into Indian food processing with the traditional and ancient practices that very
often gave rise to the more sophisticated techniques of the new technology, and presents this mixture
in an interesting and lively way to the lay reader. A departure from the routine presentation of food
categories and groups makes the book more readable, even for specialists in the field, who will have
no problem understanding that the "foundations" of the diet means the staple foods, the "cups that
cheer" means tea and coffee; the "tastes that differ" refers to sugar, honey, and salt; and the "living
foods" are the products of animal origin such as eggs, fish, and meat. The book is written simply and
is suitable for both nutrition professionals and lay persons. However, it is missing a chapter that
relates the various food preparations and local recipes to consumption at specific ages and in
different physiological states.
11. R. C. Israel and J. P. N. Tighe in their review and analysis of the Literature of 96-page annotated
bibliography with a 5l/2-page introduction. It is not a state-of-the-art review and analysis of the
literature as claimed in the title. The annotated bibliography draws heavily on consultant reports for
the AID funded International Nutrition Communications (INCS) Project, managed by the senior
author. Indexed by country and topic, it provides the UNESCO readership with a wealth of useful
information that does not appear in established journals. The introduction chronicles the rapid
expansion in the concept of nutrition education in recent years to encompass all aspects of social
marketing. Technically rigorous communications and marketing approaches have yielded significant
improvements in dietary practices and in nutritional status and have elevated nutrition
education/communications to the status of an intervention that attracts multi-million-dollar
investments. Israel's claim that more resources have been allocated to combat the problems of under
nutrition in developing countries than to prevent over nutrition in industrialized countries is incorrect.
This document makes reference to most of the recent, innovative developing-country projects.

12. B. L. Amla and V. H. Potty in their research paper Development of energy saving technologies for
the food processing industry, as pointed out awareness of the importance of energy saving in
manufacturing processes was kindled only when fossil fuels registered dramatic price increases in
1973. These increases led to evolving strategies to conserve energy resources, especially exhaustible
sources, by reducing their consumption and developing renewable sources of energy. To achieve any
significant savings in energy consumption in manufacturing processes, the food industry must
reliably assess energy consumption at each unit operation. Estimation of gross energy requirement
can be used for deciding on technology options. Two approaches for achieving significant savings in
energy consumption in the food industry could be: (a) improving the efficiency of each unit
operation by design improvement; (b) developing new processes or products that consume less
energy than traditional processes. The latter approach may be suitable for developing countries like
India, which is promoting its processed food industry on a priority basis. A few technologies that
require considerably less energy to process products developed in India are highlighted in this paper.
13. Narendra Shah, CTARA* & K V Venkatesh in their paper Opportunities for the Food Processing
Industry in India has expressed that in India agricultural and dairy sectors have achieved remarkable
successes over the last three and a half decades. Besides being one of the world's largest producers
of food-grains, India ranks second in the world in the production of fruits and vegetables and first in
milk production-providing much needed food security to the nation. The accomplishments of the
green and white revolutions have, however, not been matched by concurrent developments in supply
chain management, and in new technologies for better processing, preservation, and storage of food.
Pockets of shortages and near starvation, substantial wastages due to spoilage, quality deficiencies,
and inadequate returns to the farmer are still very much in evidence.
14. M.S. Gupta in his comparative study of International Food Legislation and Practices has expressed
his views as Food Processing Industry is widely recognized as a 'sunrise industry' in India having
huge potential for uplifting agricultural economy, creation of large scale processed food
manufacturing and food chain facilities, and the resultant generation of employment and export
earnings. India has enormous growth potential from its current status of being the world's second
largest food producer to be the world's number one producer. However, there are several bottlenecks
that need to be overcome for achieving such position. Part of the problems, arises from India's
multiple food laws and their complicated administration structure making adherence difficult.
15. Satish Chacker and KK Juneja has given their review on Food Standards, Implementation and
Quality Control as food is one of the essentials for maintenance of life and is embedded in cultural
and social habits of people. It is very important that the food available is safe/hygiene, wholesome
with right nutritional content, free from infection/bacterial contamination, intoxication,
contamination and adulteration. Changes have been brought about habits resulting due to
developments in technology and for socio economic reasons; food is in increasing demand for a
range of food products. Therefore Food Regulations and standards have become a sensitive subject
and the regulation of the quality of the food products the object of an increasing public interest.
Quality is being the first consideration for the Consumer acceptance, which in turn is linked with
recognised national and international standards, reflecting the national and international markets
which are essential for the manufacturer to be able to design, produce and market products
embracing the Consumer's needs of quality features and using up to date technologies. Compliance
with these standards is ensured through the use of regulatory standards and quality assurance

16. Rajat K. Baisya in his article on Nutrition Labelling of Foods highlights on how consumers are
exposed to a whole range of processed foods every day. Those who do not want the inconvenience
of preparing their own meals are willing to pay a premium for foods perceived to be of high quality
and standard. One of their main bases of comparison is the information on the labels of these items.
But our foods regulations in India are not elaborate and stringent enough to make it mandatory for
the manufacturers to declare relevant information on the label to guide purchase decisions of the
consumers. In India food labelling standard is still in its infancy and only provide very limited
information towards product quality, safety and wholesomeness. Only recently a very select
category of foods like baby foods and fruit and vegetable products have been taken up for deciding
about the Environment Friendly Labelling Standards at the initiative of the Ministry of Environment
and Forest and I have represented Confederation of Indian Industry (CII) in that Committee. But that
is a voluntary standard and I have immense doubt whether there will be any taken for that in the
Industry. It would be a great service if the food labelling is made compulsory to incorporate
nutritional and other quality details of the product so that consumers are not taken for a ride.
17. The study carried out by S. Mahendra Dev and N. Chandrasekhara Rao of the Centre for
Economic and Social Studies (CESS) for the International Food Policy Research Institute (IFPRI)
and the State Government, pointed to the high price elasticity of consumers, low capacity utilisation,
lack of insurance facilities, lack of pre-cooling units, roads, extension services, quality testing
facilities, brand development and low per capita production. On the positive side, the study cited as
strengths of the State, high production of raw material, cheap labour, large domestic market base,
trained manpower and a network of research institutions. Dr. Dev presented the details of the study,
"Agro processing in Andhra Pradesh: Opportunities and Challenges", at a seminar on "Agricultural
exports and food processing", organised by IFPRI at the Acharya N.G. Ranga Agricultural
University. The study made a series of policy recommendations. It suggested bringing all food
processing industries under an independent Ministry and creation of a separate department at the
State level. It recommended encouragement to contract farming in fruits, vegetables, poultry, feed
crops like maize, soybean, organic rice and other products and large players in these fields attracted
to set up units.
18. Indrajeet Chatterjee in his complied report on Food processing industry has bright prospects in
India on the world wide web has anticipated that the Indian food processing industry is expected to
touch Rs 5,00,000 crore as more and more opportunities begin to emerge in the sector. According to
the report the government initiatives in the area will determine the pace of growth. The government
has to ensure level playing field by rationalising tax structure, allowing equal access to farm produce
and introduce integrated food law. It should ensure that key enablers are in place and also play a
facilitator role to the industry, the report suggests. The CII-Mckinsey report has identified five key
opportunities emerging in the Indian food market requiring targeted strategies with strong focus on
achieving the right balance of efficiency and innovation. According to the report, mass-market basic
foods will continue to be the largest area and will require companies to ensure distinctive efficiency
across their business system to reduce inefficiencies and compete with the low-cost unorganised
sector. A mass-market value-added food opportunity is beginning to emerge in products like rotis,
ready-tocook/ eat products and condiments. Given their mass consumption nature, product
innovation needs to be backed by a highly efficient business system to succeed, the report says.
Niche market opportunities in more exotic product categories will continue to exist and provide
reasonable profitability, but will require tailoring of the product mix to local tastes to gain

acceptance. Exports of food products can become a valuable growth driver for the industry,
leveraging the historic base, new specialty categories and other areas where India can build a
distinctive advantage and a strong brand. There will also be a significant growth in terms of input
providers, logistics suppliers and retail, the report says. It says Indian companies need to focus their
efforts on creating market driven linkages across the entire chain, develop innovative products and
low-cost business system.
19. According to a recent report "Indian Food and Beverages Forecast (2007-2011)" published by
RNCOS, India's food-processing sector has undergone significant changes over the last six to seven
years (2001-2006). The types, variety, quality, and presentation of products have all improved,
mainly as a result of economic liberalization. The report augurs that the Indian food processing
industry would witness a CAGR growth of 15% for the period spanning from 2007 to 2011. Many
countries are increasingly eying upon India for food. Recently, India has determined to export 6000
Metric Tons of rice to Sri Lanka. Even multinational companies are banking on India to meet global
food needs today. Corporations and large investors, both domestic and global, are cashing in on
Indias agribusiness as a promising market with dual prospects - to provide for the swelling Indian
middle- class and exportoriented premium quality processed food. Various measures like food parks,
government subsidies, tax breaks, public-private partnerships in investment, increased FDI, modern
retail structure, and strengthening supply-chain infrastructure, along with worldwide road shows have
thrust the industry's growth.
20. In their analysis of Opportunities for the Food Processing Industry in India Narendra Shah, & K V
Venkatesh, has anticipated that the increased urbanization, improved standards of living, and the
convenience needs of dual income families point to major market potentialities in the food
processing and marketing sectors. This is also evident from the presence of several global foods
giants and leading Indian industrial enterprises in the country's food processing sector, such as:
Nestle India Ltd, Cadbury's India Ltd, Kelloggs India, Hindustan Lever Ltd, ITC-Agro, Godrej Foods
and MTR Foods Ltd. Besides, in the current globalized milieu, our surplus food production, as well
as the increasing preference for Indian foods (in several regions of the world) needs to be leveraged
to achieve economic and strategic objectives through exports. The Food and Agriculture Integrated
Development Action (FAIDA) report (1997) prepared by McKinsey has estimated that, driven by
changing consumer preferences, the annual consumption of 'value-added' foods alone would grow to
Rs.225, 000 crores by 2007? larger than the entire manufacturing sector! A more recent report has
stated absolute revenue increase of Rs. 900 billion in food manufacturing between 1993 and 2000.
This is in contrast with Rs. 150 billion and Rs. 300 billion in the pharmaceutical and IT industries,
respectively. Overall, the value of the Indian food industry has increased from Rs. 3.09 trillion in
1993-94 to Rs. 3.99 trillion in 2000-01. The segments with the largest growth potential have been
identified as dairy, wheat, fruits and vegetables, and poultry. This report has also identified some of
the major challenges for the emerging food industry in India
21. Westby. A. and Gallat. S, in their article Inflation will have impact on food industry as well has
studied the effect of inflation on food processing industry. Inflation is now well above 8 percent.
Basic food items are much costlier now. Government actions to stop steel export and tightening the
money supply has not yet made any impact in the reduction of inflation rate. Although finance
ministry and planning commission is still hopeful that the inflation rate will soon come down but
market is yet to see any impact of the initiatives taken so far. There will be thus direct and indirect

impact of the rising inflation rate on the performance of the processed food industry as well. Let us
examine the kind of impact inflation can have on our processed food industry.

Firstly, the rise in input cost will increase the cost of production and entire escalation in cost cannot
be passed on to the consumers resulting in lower profitability of processors. The lower profit will
force the manufacturers to cut down on other costs such as R&D, advertisement and promotion as
well as the manpower cost.
Secondly, manufacturers will not be able to absorb entire cost escalation and therefore will resort to
price increase which will reduce the demand for the products. As processed food products do not fall
under essential goods and therefore consumers will use discretion to spend in this product category.

Thirdly, consumers in general, will have less cash surplus (disposable income) to indulge in buying
products, which are sometimes impulse purchase. Middle class population that constitutes the large
part of the market will resort to drastic reduction in budgetary allocation for purchase of processed
food products.
Fourthly, the rise in prices has also resulted into short supply of the basic agricultural input. This is
also partly the result of low growth in agricultural sector. The manufacturers will have difficulty to
get the regular supply of the basic agro commodities of uniform quality and price resulting into
fluctuating manufacturing programme in the process plant or the fluctuating cost of production which
makes the supply chain management issues more complex.
Fifthly, the rising cost of production will impact the exporters of processed food products. Those
who are highly dependent on the export sales or those who are in the international trade of processed
food are already passing through difficult phase as rupee started becoming stronger in relation to
Sixthly, as we all know that processed food industry is consisting of mainly small and medium
players. The large and established players are very few. Although small players have more
flexibility they cannot have capacity to absorb shock and thus have less staying power which large
players have. Thus the ripple effect of inflation in the entire business of processed food of course,
some of these observations will be true for other categories as well but processed food industry is
going to experience direct impact, which others are not possibly experience.
22. Raghu-Raman. S.V, Retail Revolution is Finally Arrived: Impacting Our Food Industry Wal-
Mart, the worlds number one company in the fortune 500 list has finally firmed up a plan to enter
India through a 50 : 50 joint venture with Bharti Telecom. Bharti Group had been discussing their
retail business with the Tesco for quite sometimes and it was reported earlier that they are going
together. Only recently Bharti has withdrawn from that discussion and the very next day announced
the formation of JV with Wal-Mart. This only indicates that the discussion continued by Bharti
parallel with both Tesco and Wal-Mart and finally the decision was taken in favour of Wal-Mart who
were very actively scouting around for the joint venture partner in India and the choice was for the
large all India group with significant presence. Reliance could have been the other choice for Wal-
Mart along with some of the big groups like Raheja Construction including the existing players in
retail domain like Shopper Stop, Pantaloon etc. Even the domestic group like Godrej was also
named as prospective partners for Wal-Mart. Finally the issues are resolved and Bharti-Wal-Mart
joint venture is formed. Mr. Sunil Mittal of Bharti gave the press statement that it is not necessarily
the joint venture of equal equity participation but a joint venture of two equals. The real term retail

revolution therefore is about to begin in India and that will impact the prospects of our processed
food industry.
23. Graffham, A.J Some New Food Ventures Enchasing on Huge Opportunity from Global Retail Giant
Many local food ventures collapsed because they could not create sufficient local demand to support
the investment. These units struggled for existence and survived at subsistence level or even ended
up in closure. We have cited many such examples in past in the same series. Institutional funding
also, as a result, got blocked creating low prospect category for investors. When domestic market
was not growing, players found their fate got sealed as no one ever thought of building capability to
market finished product in international trade. The lifting of the trade barrier and related force of
globalization have definitely opened up new horizon for some of these capable food ventures. These
new generation food processing food processing industries have been able to create some success
stories which stories that others should try to emulate. They have been able to see new market
opportunities beyond the geographical boundaries of our country and were able to make their
products acceptable in global market. The volume of business is so high that over fifty percent of the
capacity is utilized by one retail chain. That has made their task of marketing much easier and they
can now focus and concentrate on improving technology, cost and quality and at the same time will
have time and resources to gradually build the domestic market over a longer period of time. And
this is what exactly they are doing. We will discuss the cases of a few such ventures.
24. Shegaonkar. V, in his article Health foods are getting more focus explains how Heath Foods,
dietary supplements and nutraceuticals are increasingly gaining grounds and the category is growing
fast. Even in the regular category, marketers are increasingly focusing on communicating the
nutrition and health aspects of the product more than the associated fun and convenience that goes
with the consumption of any processed food. This trend is now more visible and as younger
generation has become more health conscious marketers are trying to focus on this attribute. As
safety, health and nutrition become more important and the regulatory mechanism has become more
stringent the nutritional quality assumes significance. There is a distinct shift from consumption of
so called junk foods to health foods.
25. Saxena, S., Thangaraj, G.S has focused their attention on Acquisition of Domestic Food Business
by MNCs. Liberalisation has brought in through the entry of large multinational and transnational
corporations, foreign investment in this sector. This resulted in competition, technological up
gradation and market expansion. In the face of the competition, domestic Industries are gradually
losing market share and thus selling their businesses to the new entrant MNCs well before the value
of the brand and businesses drops further due to ongoing onslaught of multinational brands. This is
happening because MNCs have much greater resources to put behind their brand and business and
also have long term vision and sustainability. Domestic industries are no comparison.
26. David Feder, Managing Editor FoodProcessing.com in his online article The 6 top trends in food
processing has discussed the following six trends in the food processing industry. 1. Organic =
healthy---That equation is not necessarily true, but the message is so ingrained in the minds of
millions of consumers that the math cannot be ignored. 2. Get well soon ---The twin epidemics of
obesity and diabetes dominate the health and wellness category. No day passes without the mention
of one, the other or both on television, radio or in newspapers. But in general, between one-fourth
and one-third of consumers make food choices based on health for some reason. 3. Age awareness--
Health is still the biggest part of the aging trend. For every age group theres a health concern some
processor is targeting. Attention is split mostly among concerns of children, teens and seniors. 4.

Eat global, buy local---New findings in a joint study by Mintel and the National Assn. of the
Specialty Food Trade, New York, and show specialty food continues to show strong mainstream
movement, and it singles out ethnic influences as part of the growth surge in the $35 billion product
niche. 5. Control yourself---Were controlling portions not just for health but convenience. As a
trend, convenience has been high on the list of movements to follow for years. But the two aspects
merged in 2004 when Kraft Foods Inc.s Nabisco brand launched 100-Calorie Packs of some of its
most popular cookies and crackers. 6. Make room kosher, halal is here---Kosher broke away from
ethnic as a trend of its own with the first wave of fear over mad cow disease. Halal certification, the
Muslim equivalent of kosher, is finally grabbing at the same brass ring.
27. Premkumar.T, in his paper FOOD AND DRUG INDUSTRY IN INDIA "AN OVERVIEW". This
paper discusses the present Government policy, regulatory and business trends in food and
pharmaceuticals Industry in India. These sectors of industry provide multifarious opportunities to
potential investors in this Sector, both domestic and foreign. As several policy initiatives are
undertaken by the Government of India since liberalization in August 1991, the industry sectors have
witnessed unprecedented growth in most of the segments.
28. C. Balagopalan. Nayar, Food processing industries in India-Regulatory Framework. Different
laws govern the food processing sector in India. The prevailing laws and standards adopted by the
Government to verify the quality of food and drugs is one of the best in the world. Multiple
laws/regulations prescribe varied standards regarding food additives, contaminants, food colours,
preservatives and labelling. In order to rationalize the multiplicity of food laws, a Group of Ministers
(hereinafter referred as GoM) was recently set up to suggest legislative and other changes to
formulate a modern, integrated food law, which will be a single reference point in relation to the
regulation of food products. The food laws in India are enforced by the Director General of Health
Services, Ministry of Health and Family Welfare, Government of India.
29. Despite 6.2 percent growth, Indias agro industry lags behind, as Rajeev Ranjan Roy express his
views on Indias agro-industry has miles to go before it catches up with the rest of the world. Its
share in the agro-products of developing countries has gone up only marginally from 3.1 percent in
1995 to 3.8 percent in 2005, despite growing at 6.2 percent in the 10-year period. China tops the list
by accounting for 26.5 percent of the total agro-products in developing countries, says the UN
Industrial Development Organisation (Unido) International Yearbook of Industrial Statistics 2007.
Malaysias and Indias agro-industry grew on average by 8 and 6.2 percent respectively over10
years (1995-2005), while the regional agro-industry growth performed at 5.7 percent, the report
states. Indias agro-industry employment share, says the Union report, in total manufacturing formal
employment is only 1.2 percent, while it is 9.5 percent in the Philippines, 8.8 percent in Malaysia and
7.6 percent in China. There is tremendous potential in India for the growth of the agro-industry. It
is happening in other countries, but not in India. What is needed is proper coordination with farmers,
and adequate processing infrastructure for agro-products,
30. Satish Y. Deodhar in paper Motivation For and Cost of HACCP in Indian Food Processing Industry
is of view that to remain quality competitive in the post-WTO regime, Indian food processing firms
would have to adopt a food safety management system - Hazard Analysis and Critical Control Points
(HACCP). It is necessary to understand, therefore, in what way the system benefits firms, and, what
are the costs of HACCP implementation. This paper does that. Data on reasons for and cost of
HACCP implementation was generated through questionnaire survey of food processing firms.
Analysis was performed using factor analysis, contingency tables and chi-square tests. While quality

and production related factors motivate firms to employ HACCP, trade associations are not at all
instrumental in promoting the system. Set-up cost and operating cost vary with the type of food sub-
sector and the size of firm. Government and trade associations may facilitate sector specific
concessional loans for HACCP implementation and initiate training programmes. Economies of
scale are important in HACCP adoption; hence Indian firms may want to go for horizontal and/or
vertical integration.
31. Marvin T. Batte, Jeremy Beaverson and Neal Hooker in their research work Organic Food
Labels: A Customer Intercept Survey of Central Ohio Food Shoppers presents a report of a customer
intercept survey of customers in six central Ohio grocery stores; two suburban, two inner-cities and
two rural. The survey addressed customer awareness of the USDA National Organic Program
(NOP), particularly for processed foods. Also studied were customer willingness to pay for
alternative levels of organic content in breakfast cereals, customer purchase patterns for organic
foods, and their opinions about the benefits of organic and other food characteristics. Forty-two
percent of those surveyed reported purchases of organic foods, the majority purchasing at least twice
monthly. Consumers indicated a willingness to pay higher prices for processed foods with organic
content. This willingness to pay varied with income and demographic characteristics of the
households. Differences were also observed by store location.
32. Madan Lal in his article Food Processing Industry poised for growth expressed that the Food
Processing Industry in India is one of the largest in terms of production, consumption, export and
growth prospects. Important sub-sectors in food processing industries are: Fruit and Vegetable
Processing, Fish Processing, Milk Processing, Meat and Poultry Processing, packaged/Convenience
Foods, Alcoholic Beverages and Soft drinks and Grain Processing, etc. As a result of several policy
initiatives undertaken since liberalization in July 1991, the industry has witnessed fast growth in most
of the segments. As per a recent study on the food processing sector, the turnover of the total food
market is approximately Rs.250, 000 crore (US$69.4billion) out of which value-added food products
comprise Rs.80,000 crore (US$22.2 billion). Primary food processing is a major industry with lakhs
of rice-mills/hullers, flour mills, pulse mills and oil-seed mills. There are several thousands of
bakeries, traditional food units and fruit/veg./spice processing units in unorganized sector. In the
organized sector, there are over 820 flour mills, 418 fish processing units, 5,198 fruit/vegetables
processing units, 171 meat processing units.
33. Dr. R.P. Das** and Mr. VikasNath in their research paper on Environmental marketing with
special reference to fast food industry in India As concern grows for maintaining and improving
quality of environment and protecting human health, organizations of all sizes are turning their
attention to potential impacts of their activities, products and services on environment. The
environmental performance of any organization is of increasing importance and achieving sound
environment requires organizational commitment to a systematic approach and continuous
improvement. Food has a very wide meaning but it can be summed up as any plant or animal
material, which can be consumed for nutrition and sustenance. Human beings have always
recognized that preservation of food and processing of food is of central concern. Food processing
industry is of enormous significance for Indias development because of vital links it provides
between the two strong pillars of our economy viz. industry and agriculture. It is in this context that
Govt. of India (GOI) has given utmost priority to develop the food-processing sector. The entire
sector has been deregulated and no license is required except in the case of alcoholic beverages.

Automatic approval for foreign investment up to 51% is allowed.Even where investment is more than
51%, approval is given on a case to case basis by the Foreign Investment Promotion Board (FIPB).

34. Harish Yadav in his online article Dirty secrets of the food processing industry has criticized the
way food is processed. We have always processed our food; that is something that humans do. We
cook our food - that is one type of processing. Processing has two functions: to make food more
digestible and to preserve food during times when it isn't readily available. This type of processing
produced traditional foods like sausage and the old fashioned puddings and haggis. It includes bread,
grain products, cheeses, milk products, pickles, butter, everything from wine and spirits to lacto
fermented beverages. Farmers and artisans like bread makers, cheese makers, distillers, millers and
so forth processed this food. This type of processing made delicious foods, retained their nutritional
content, and kept the profits on the farm and in the farming communities where it belonged. Food
processing should be a cottage industry and produced locally. Unfortunately, in modern times we
have gone from local artesian processing to factory and industrial processing which actually destroys
the food rather than making it more digestible as traditional processing did. Industrial processing
depends upon sugar, white flour, processed and hydrogenated oils, additives, synthetic vitamins and
an extrusion processing of grains. These are the tools of the food processing industry. Let's have a
look at the typical American breakfast of cereal, skim milk and orange juice. These cereals are
produced by a process called extrusion. They take the grains from the farmer, pay them a pittance
for them, make the grains into slurry and put them in a tank, a machine called an extruder. The
grains are forced out of a little hole at high temperature and pressure and shaped into little o's and
flakes and shredded wheat and so forth, or puffed up. A blade slices off each little flake which is
carried past a nozzle and sprayed with a coating of oil and sugar to seal off the cereal from the
ravages of milk and to give it crunch. Paul Stitt has written about the extrusion process used for
these cereals which treats every grain with very high heat and high pressure and destroys much of the
nutrients in the grains. It destroys the fatty acids; it even destroys the chemical vitamins that are
added. The amino acids are rendered very toxic by this process. The amino acid lysine, a crucial
nutrient, is especially ravaged by extrusion. This is how all the boxed cereals are made, even the
ones in the health food stores. They are all made in the same way and mostly in the same factories.
All dry cereals that come in boxes are extruded cereals. The only advances made in the extrusion
process are those which will cut cost regardless of how these will alter the nutrient content of the
product. Cereals are a multi-billion dollar business which has created huge fortunes. You would
think there would be some studies on the effect on man or animals. There are no published studies
and there are only two unpublished studies which were done on rats.
35. Dr. A. Sivakumar highlights the types of food additives and their increasing significance in the food
processing industry. Any substance added to food that changes its characteristics is called food
additive. These are used in the production, processing, treatment, packaging, transportation or
storage of food. Additives may be direct or indirect. Ethical food manufactures use food additives
that are generally recognised as safe. Like all scientific inventions, food additives have both the
positive and negative aspects. While they serve useful purpose in efficient utilisation of food
resources, they could be a health hazard if used indiscriminately. Consumers must be educated and
be vigilant about the use of additives and the marketers of food products must be ethical in the use of
the same. Likewise, transparency through mandatory regulation as well as voluntary disclose would
help further the cause of additives.

36. Jagdeep Kapoor explains in his article why the Samsika ATA module is a strategic weapon for
brand marketing. One of the fastest growing industries in the world is the food processing industry.
In any continent or country, this sector has shown growth by leaps and bounds. However, while this
industry offers tremendous potential, it has also witnessed the largest numbers of failures. There is a
special Samsika food brand marketing module called the Samsika ATA module. ATA stands for
focus on Availability, Taste and Affordability. Availability not only in terms of width of
distribution, but also in terms of quality, availability and visibility. Taste, including regional
presences and changing likes and dislikes. The intangibles in the taste factor also need to be
considered because Indians are people with a fine taste. Finally for Affordability, wherein a choice
needs to be given to consumers across size, price and range so that not only width and consumption,
but also depth and frequency of consumption go up. In the food processing industry, it becomes
extremely important to first make a need assessment and understand the habits of the Indian
37. Francis Stalder in his article gets into the specifics of cold chain monitoring, as she explains its
significance for the growth of Indian food processing industry. India holds the second largest arable
surface in the world and various agro-climatic zones. It has tremendous production advantages in the
agriculture, with the potential to cultivate a vast range of agricultural products. Because of its strong
base in agriculture, it provides a large and varied raw material base food processing. However,
processing levels are low in the country. And as a consumer, India, with a population of 1.08 billion,
is a large and growing market for the food products. Cold chain visibility solutions streamline the
quality maintenance process and its cost provide pinpoint accuracy when determining acceptable
product freshness guidelines and produce a return on investment in both increased revenues and
customer loyalty.
38. D.M.More in his article on processing the jamun and Karonda for beverages has put forward some
strategies for the food processing units which are engaged in manufacturing beverages from jamun
and Karonda. He has carried out the detailed study on effect of different process on percent juice
recovery, chemical composition and sensory qualities of unfermented beverages prepared from ripe
jamun and karonda fruits.
39. Dada Dongare, in his experimental study has investigated the physicchemical composition of fruits,
their storage behaviour under different storage conditions as well as preparation of value added
products from firmflesh and softfelsh types of fruits and their wastes. Also their storage at ambient
conditions was studied.
40. Dr. Vijay Mehta, in his article Konkan agro development vision 2020, has revealed the current
agricultural development in Konkan region. In this article the researcher has studied various
challenges faced by different entities in the food processing industries; right form the agriculture
activities to providing the finished processed food to the cosumer.
Even though there has been lot of work on management practices to increase the efficiency and utilize it
in food processing industry. While everyone seems to accept this fact, there is equality in studies of
these practices and policies. But form review of relevant literature it is clear that the studies are
piecemeal in nature. There is no more work on a food processing industries in Konkan region, so to fill
in the gap the research.





The study will give a clear picture about how Khandelwal Food Products is differentiating from clutter
of companies present in the marketing today. This will help out to understand how a brand is evolved
and what sorts of activities should be conducted to create a positive brand image in customer mind.
Being in food processing industry you should concentrate on marketing support which is very important
to create a difference.
The main purpose to conduct this study is to find out the perception of the food processing industry
towards the Khandelwal Food Products as a powerful and positive brand.


The objective of the project was To understand the Challenges In Business Development and Planning
At Khandelwal Food Products. Thus, visiting the big player in Food Processing Industry sector and
give a close look at the brand building exercise conducted by the company. By deeply examine the
marketing activities of Khandelwal Food Products it was easy to understand the market dynamics of
Food Processing Industry as well as how these marketing activities play a crucial role.


The study gives us an idea as to what difficulties Khandelwal Food Products is facing in spite of being a
very good quality product producing company. It gives a scope of improvement to rethink on marketing
aspects to be practised to create a brand value in the market so as to make Khandelwal Food Products a
distinctive positive and strong brand.


During the study my learning in classroom (case studies, freewheeling discussions) proved to be very
useful. At times I referred to my marketing book for branding and marketing skill for Khandelwal Food
Products. This was of immense help in improving the quality of my inputs.





1. Easy availability of good quality Raw materials: Place where Khandelwal Food Products is
functioning is a hub of its major raw material i.e. Amla. Therefore, it is easy for them to procure
good quality amla in bulk and at low rates.
2. Well based customers:The customers/clients of the company are of higher end, conscious about
the quality of the product and are willing to pay more prices.
3. The area in which company deals in is an Unorganised Sector. There is no parameters for the
quality, thus there is no specific quality for the products. Khandelwal Food Products deals only
in quality products therefore it doesnt have to face much competition.
4. Khandelwal Food Products is interested in selling their products directly in Chain System i.e.
directly to the retailers, no middlemen. This was aim to protect the retailers to incur more cost
and earn higher profits from selling the companys product. Therefore retail chain owners are
more interested in selling the product of Khandelwal Food Products over their competitors.
5. They provide the maximum variants of their products as compared to their competitors.
6. Products are convenient for the customers to use in any situation.
7. Hassle free application.
8. Products are of superior quality.
9. 100% natural, hygienic and biodegradable products.
10. They have all International Food and Safety Certification.
11. Best Brand Compactly packaged in such a way so as to increase the shelf-life of the product.
12. Follow an Open Door Policy in the organisation. Employees share their issues and problems
with the management without any hesitation.


1. High Price: The price of the products of Khandelwal Food Products is very high in comparison
with its competitors.
2. Remote Area: The biggest drawback of the Khandelwal Food Products is that it is located in
the remote area where there is no place for entrepreneurship.
3. No electricity: Day to day working gets affected by the power cut offs that occur very often.
Thus, for smooth functioning generators run for most of the time and therefore increasing the
operating cost and the cost of the product.
4. Law and order: The law and order of that state is not even up to the mark and thus interrupting
the day to day work.
5. The attitude of the Government Servants: Are not up to the mark and they are not interested
at all in the support of the industry and thus dig out some or the other unnecessary issues.
6. Bank and other financial institution: They are not interested in lending the money/loan to the
7. Inspector Raj: The inspectors from various departments such as electricity, pollution, etc.
visits the company without any notice and no matter how hard the company tries to follow the
law by attaining all the permissions but the inspectors dig some or other minor issues and asks
for money. Being a businessman a person tries not to get involved in these troubles and pays
them without any further investigation. This demotivates the owner of the company.
8. Machineries: There is no proper support from the machinery industry also because by not
getting the routine sales for the machines required by like Khandelwal Food Products, etc,
machinery industry are not interested in manufacturing those machines. Thus, it is difficult to
get the machines in time and by paying higher price for them.


1. People are getting health conscious and have started to prefer good quality products therefore
the market for food processing and manufacturing industry is growing.
2. If the government improves their attitude towards this industry and listen to the problems of
them, then this industry will have a vast and a great future and will be taken to the whole new

3. If government focus on this industry then it will be a greater source of employment as it is
labour intensive industry and thus increasing the standard of living of people and the growth
and development of an economy as a whole.


1. Stiff competition from cheaper products.
2. Higher level of competition from big players like Dabur, Patanjali, etc.
3. The local manufacturers have always gained a lot of popularity and it is very difficult to remove
their mark from the customers mind.
4. Problems of labour: In the present situation nobody wants to work. In the coming time it will
be difficult to get the labour. Thus, it will be difficult to run this industry without labour as it is a
labour intensive industry.
5. Raw Materials: The suppliers are not getting proper return on their supplies therefore they are
cutting down their trees and interested in planting some other crop which will yield them better
return. If government do not take a necessary step then the industry will not get good quality
raw materials.
6. The leading and big players in the market such as Dabur, Zandhu, Patanjali, etc. lowering the
price of their product thus the small scale industries have to follow them which leading to
smaller portion of profit is left and its a demotivating factor for them.
7. Internal consent by bigger firms develops syndicate.






2004-05 40.00 2.60
2005-06 50.00 3.35
2006-07 62.50 4.00
2007-08 76.80 5.20
2008-09 97.63 7.00
2009-10 121.10 9.00
2010-11 157.40 12.12

2011-12 201.40 15.10
2012-13 261.90 18.80
2013-14 300.00 21.00



As it can be seen that the company is growing year after year, the sales figures of 2004-2005 i.e. 40 lacs
and in 2013-2014 the sales figure is 3 crores. It ca be seen with the help of the graph also the bars are
constantly moving towards upward direction.



As the sale of the company is increasing year after year, so does the net profit of the company. Here also
the graph is constantly moving upward. The net profit for the year 2004-2005 is 2.60 lacs and for the
year 2013-2014 are 21 lacs.
Therefore by seeing the data and the graph we can say that the company has a great market and future.

NP (lacs)
NP (lacs)


1. http://www.ecoindia.com/flora/trees/amla-plant.html
2. http://en.wikipedia.org/wiki/Indian_gooseberry
3. http://www.fruitipedia.com/jamun.htm
4. http://en.wikipedia.org/wiki/Syzygium_cumini
5. http://health.wikinut.com/The-Health-Benefits-Of-Jambul-Or-Jamun-The-Purple-Summer-Fruit-Of-
6. http://www.satvikshop.com/blog/herbs-knowledge-base/bael
7. http://www.organicfacts.net/health-benefits/fruit/health-benefits-of-wood-apple-or-bel-fruit.html
8. http://www.indiamart.com/khandelwal-food/
9. http://shodhganga.inflibnet.ac.in/bitstream/10603/9936/10/09_chapter%202.pdf
10. http://www.fnbnews.com/article/detnews.asp?articleid=22484&sectionid=18
11. http://www.epw.in/special-articles/fruit-and-vegetable-processing-industry-india.html
12. http://www.kvic.org.in/index.php?option=com_content&view=article&id=280&Itemid=241