ABOUT US

AGROCITY FOOD OIL INDUSTRY’s PVT.LTD. is founded in the year,

1999. Initially it started with the oil plantation and Food Manufacturing
business.

VISION & MISSION

Accomplish the excellence in the business ethics and the operations as

the best performance based food manufacturing and oil plantation and to
be recognized as the best.

CORE VALUES

• Deep rooted ethics

We conduct business with ethics as our primary principle.

• Integrity

We hold the highest levels of integrity.

• Process and quality excellence

We are a process and quality driven organization.

MISSION

To provide the highest quality product to our customer, staff and

shareholder.

Leading Manufacturers and Exporters of Vegetable Oils

and Fats in India.
 INTRODUCTION:
AGROCITY Food Industry’s PVT. LTD. Mumbai, a public listed
company listed on the Bombay Stock Exchange whose principal
activities are in oil palm plantations and Food Manufacturing and
Marketing of branded consumer products.

AGROCITY is proud to be one of the leading manufacturers and

exporters of vegetable oils and fats in India. Our company offers an
extensive range of products including tailor made products for the food
service and retail-markets worldwide.

We offer flexible and well tailored services, working hand in hand

with our valuable customers in ensuring cost-effective solutions are
provided to meet all their requirements. From sourcing of raw materials
and stringent quality standards in processing, to tailored products with
innovative packaging and well-niche logistic system, we strive to
establish closer working partnerships with our growing customer network
in the supply of vegetable oils and fats.

The total food production in India is likely to increase substantially

in the coming years which will throw enormous opportunities for large
scale investments in food and food warehousing, logistics management
and processing.

ORDER PROCESSING:
Our companies order processing system involves procedures like pick
up, packaging, and delivery of packed items to the shipping carriers. We
have designed and developed the best order processing software, which
can help to take business orders effectively and encourages interest
from the customers towards repeating their business.

Purchase cycle:

Requirement from user department

Requirement from user

Send ENQUIRY to vendors

Get QUOTATION from vendors

Study and compare the quotations

with our estimated cost

Negotiate the quotation to fix the price

Place the order to the right vendor

Follow up with vendor

Get the material

 Inspect the material

Stores credit the material

The shift of traditional logistics operations to electronic logistics

Process Traditional Electronic logistics

logistics (E-logistics)

Order Predictable Variable

Order cycle time Weekly Daily or hourly

Distribution model Bulk Concentrated More cyclical

Smaller lots

Customer service Scheduled flexible

Customers Reactive, rigid Responsive,

WAREHOUSING:
The domestic market is characterized by oversupply in the peak season
and shortage in off season, resulting in off season prices that are often
3-4 times of season prices. The lack of appropriate storage and logistic
infrastructure jacks up the prices for the ultimate consumers. As a result,
neither does the produce reach the consumer in the optimal condition
nor does the producer get fairly remunerated.

To capitalize on this segment, Agrocity Food Industry has taken the lead
in developing such an integrated storage, handling and transportation
infrastructure for fruits and vegetables in India. This will enable the
company to provide consistent quality of branded fruits and vegetables
all the year round. The company will be employing ‘Controlled
Atmosphere Technology’ for increasing the shelf life of fruits. Distribution
centers will be set up across India, complimented by setting up its own
logistic cold chain to increase efficiency of the system.

The Company has set up Controlled Atmospheric Storage units at three

locations in Maharashtra (Nagpur), Punjab (Haryana), Kerala (with a
capacity of around 18,000 MT. Each Site has been constructed with 7
Blocks of 6 Chambers totaling to 42 chambers at each location.

The strategy is to concentrate on products that are produced far from

major consumption centers, are seasonal in nature and are amendable
to increase in storage life using modern integrated cold chain facilities.
This would enable the company to leverage on its logistics strength
while at the same time take advantage of controlled atmospheric storage
technology to arbitrage on the price differential between peak and off
peak season.

Storage facilities of the enterprise make it possible to conduct round-the-

clock provision of raw materials amounting to 2 000 tons per day so that
the seeds meet the requirements necessary for their storage. Aggregate
capacity is 50 thousand tons of sunflower seeds and 10 thousand tons
of pressed seed cake.

Warehouse facility management

 Rational use of warehouse facilities, as a rule, floor storing only or in
piles. Warehouse processes are regulated and standardized. Each
warehouse organizes work based on ‘piercing holes’ principle
learning from own mistakes.

Efficient regulative base of warehouse operations and loading and

off-loading work.

Rational use of warehouse facilities, all-out methods of work in

combination with idle time of equipment and personnel

Centralized warehouse facilities management. Warehouse areas are

managed by many divisions, i.e. procurement, units and NGDU,
extraction units, service departments and etc.

Many warehouse facilities have automated control systems and

provide operative access to data from joint centre

Packaging:

We ensure proper packaging to our edible oil to ensure that it is

delivered in the same condition as processed. Our packaging experts
ensure that our edible oil nutrient and aroma are preserved till the very
end. Proper and reliable packaging also ensures that oil are safe form
any type of contamination during the transit period. We offer various
packaging options as per the client’s requirements. Our oils are packed
in standard and customized size tin for the industrial usage and in
pet bottles for retail clients. Further these are packed in corrugated
boxes during its transportation to various locations.
Our properly packed edible oils are stored in well-maintained
warehouse, which has the required facility for keeping the products safe
and hygienic. We have expert warehouse staff that keeps the record of
all the incoming and outgoing stock. It ensures us with ample stock of
the edible oil so that all the orders of our clients are timely executed.

MATERIAL HANDLING:

Globally, movement of major food grains like wheat, for domestic

consumption or exports, is done in an integrated fashion in bulk right
from farm gate to port or consumption centre. This helps to reduce
multiple handlings and associated high wastage and pilferage, which
typical exists in developing countries like India.

Agrocity Logistics Ltd. is responsible for development and operation of

bulk food grain handling, storage and transportation facilities. Agrocity
Logistic Ltd has developed vertical silos to store grains and movement in
bulk in top loading/ bottom discharge wagons.

INVENTORY CONTROL:

Types of Inventory Control Systems

As the earlier discussion implies, there are two primary questions to
answer in logistics system design.
(1) Who will make the ordering decision?
(2) What is the smallest amount of information on which those decisions
can be based?

The ordering decision must answer two questions:

1. How much should be ordered?
2. When should it be ordered?
A full discussion of the types of logistics systems is beyond the scope of
this paper.
In theory, however,

There are only three different types:

1. Fixed order size, variable order interval systems
2. Fixed order interval, variable order size systems
3. Combination systems
In a fixed order size, variable order interval (or order point) system, a
specific fixed amount of a

commodity is ordered whenever inventory falls below a certain level,

called the reorder point.

Storekeeping:
The systems for physical control of inventory at each facility will vary
depending on staff and storage
space available. A number of general concerns should be addressed at
each location, however,

The first consideration is security of the physical inventory. Minimum

security measures include:

1. Ensuring that all stock movement is authorized by locking the

storeroom, limiting access to persons
other than the storekeeper and his/her assistants, and ensuring that both
incoming and outgoing stock
matches documentation.
2. Verifying authenticity of documentation by spot-checking signatures
and so forth.
3. Periodically verifying inventory records by a systematic count of
physical inventory.

The second consideration is the facility’s physical layout. The ideal

storeroom should have

1. Two different points for receipt and dispatch of goods to provide for
orderly flow of materials and to reduce opportunities for clerical error or
theft.
2. A fixed location for each stocked item, with appropriate conditions
(temperature, humidity) for the
Items being stored.
3. Adequate space for unpacking received material and for packing
outgoing shipments.
4. A separate secure area for valuable items.
5. Adequate access to all items in the storeroom to allow for first-to-
expire, first-out (FEFO) handling.

Stock management:

• High turnover of stocks on • Determined demand for

significant inventory items many inventory items (first of
and as a result ‘frozen’ all, for maintenance and
significant turnover assets. exploitation needs).

• Strong regulative base on • Systematic regulated

standardizing stocks of procedures for operational
commodities and goods. identification and sale of
‘illiquids’.

TRANSPORTATION

It is virtually impossible in today’s economy for a company to function

without the aid of transportation. Transportation management covers the
areas of shipment scheduling, freight cost management, carrier
selection, shipment tracking, and parcel management. It helps us to
make the best use of available resources, and keeps fully informed on
all transportation processes.

MODES OF TRANSPORT USED BY THE AGROCITY FOOD

LOGISTIC LTD.

Agrocity Food Logistic Ltd makes use of all modes of transport system.
They Design, finance, construct, operate and maintain Base Depots and
Field Depots. They Receive grains from FCI at the base depots, weigh
them, clean them store them and transport them either by rail or road.
They Receive in bulk by rail, handle, store and preserve the grains at the
field depots and, thereafter, load these grains in bulk/bags for
transportation by rail or road. They Construct and maintain rail and road
access from the depots of the circuit to the nearest rail and road
networks.

There is a shipping facility at the enterprise that allows shipment of all

kinds of products by railway in any season. Motor transportation division
of the company delivers products to consumers anywhere the world.

1. Airlines:

This mode is used mostly for delivery of high value and low
volume goods and for their immediate delivery in domestic and foreign
countries. It is also suitable for some specific requirements of urgent
needs.

2. Road :

This mode is used by suppliers to deliver the goods in a cost

effective manner and best suited for short distances. Many transport
companies have expertise for fast delivery, packaging etc. for making
scheduled delivery.
Road transport is a major mode of transport used by our company to
provide door to door delivery of goods in a lesser cost. Our company use
huge containers to transport material on the large scale in safe way
containers are the new type of vehicle specially designed as per the
climatic conditions required for transport of food oil.

3. Pipelines:

The pipeline mode is offering advantage of having the product

at any time. Generally it is used by oil sector companies for mass
movement of oil related products. Due to quite low operating cost it is
one of the preferred modes of transportation.

4. Railroads:

This is the most economical and safe transportation mode.

This is good for long distance transferring of goods. This is used for
delivery of wide range of goods related to oil, raw material required at
various plant and delivery of finished goods.

Transportation management

In transportation management

• Efficient routing • Effective system of

schemes, complete
loading, idle lifts, idle
time of transport.
• Rational system of
transport services
consumption, quantity of
provided transport is
connected with real
volume of transport work.
dispatching and transport
work organization
(organization of
centralized delivery).
Significant share of self-
delivery.
• Efficient regulatory base
on standardizing
transport operation.
 • Set up system of
operative coordination of
capacity, rates and
requirements of
warehousing facilities,
transport and production.

DISTRIBUTION NETWORK DESIGN

AFIL operates a fully integrated electronic forecasting, production,

ordering and distribution system, allowing a Just In Time (JIT) process to
be implemented in many parts of the production and logistical systems.
These internal programs result in faster turnaround lead times from
placement of orders to receivable of goods by our customers.

In India, AFIL trade its products with Eastern Alliance Trading for retail
sales and distribution, where the network spanning the tradition

al retail outlets, hypermarkets, supermarkets and convenience stores.

COST FACTOR (COST REDUCTION TECNIQUES)

Our experts have practical experience of logistics optimization in oil production
sphere and are ready assist you in significant reduction of oil prime cost through
utilization of logistics approaches.

Solution of logistics tasks in oil producing companies assist to achieving of

the following indicators:

Indicator Outcome

Reduction of order satisfaction level of up to 95–

customers in procurement system 97%

Reduction of warehouse stocks by 25–30%

Reduction of order execution time by 15–20%

Reduction of warehouse costs by 10–15%

Reduction of transportation costs by 9–14%

Cost reduction on logistics management by 20–40%

Reduction of total costs related to KiTRS by 10–12%

Purpose of Logistics Systems:

The purpose of a logistics system is simple: to obtain and move supplies

and equipment in a timely fashion to the places where they are needed, at a
reasonable cost. Matters are complicated by the fact that equipment and supplies
usually cannot go directly from their source to the end user; they frequently
must
Be held as inventory at one or more intermediate points along the way.

There are only four reasons for holding inventory:

1. Transportation efficiency:
It is not reasonable to ship single bottles of pills across the ocean or to
deliver maternal and child health (MCH) kits to a clinic daily; thus, shipments
are made in batches of a size and frequency dictated by the transportation
system.
2. Safety stocks:
Because trucks break down and roads wash out, and because actual
demand usually cannot be predicted very accurately, facilities must maintain
safety stocks to ensure that they do not run out in times of high demand or late
resupply.

3. Storage capacity:
If a facility close to the end user has limited storage space, then inventory
must be held at the next higher level in the system, and must be delivered more
often.

4. Anticipation:
In a program that is growing or changing, it is necessary to store
inventory in anticipation of demand that does not exist yet because of
the length of time between ordering supplies and receiving them. Any
system that stores inventory for reasons other than these is a candidate
for streamlining. It is important to remember the overriding principle of
logistics system design: the system must be simple. Its purpose is to
move supplies, not to create paperwork.

PRODUCTION

Production facilities, upgraded in 2004, allow processing up to 300 tons

of sunflower seeds per day. Oil is pressed out once allowing
producing a biologically active product; pressed seed cake which is
obtained during pressing has high protein and other important
nutrition components.

There is a refining plant and deodorization plant at the facilities

which allow obtaining high-quality vegetable fats. The refining
plant makes it possible to process up to 280 tons of vegetable
oil per day. Oil undergoes all
stages of refining:

• Hydration
• Neutralization
• Bleaching
• Winterizing

We keep constant technological and laboratory control over the product

quality and over reagents used in these processes, supplementary
deodorizing powders and bleaching earths at all production stages.
Production equipment was installed and brought into operation in 2004.
When equipping the production line, the latest developments of the
refining equipment manufacturer were used.

The finished products come to the Bottling Department where up to 250

tons of oil are processed per day. This department has up-to-date
equipment allowing to produce PET bottles and to carry out oil filling and
packing in the widest range of bottles. Oil is saturated with nitrogen in
order to prevent its early oxidation and to preserve its consumer qualities
for a long time. Oil is bottled in containers and packed in corrugated
packaging.

The tankage of the enterprise allows storing oil in the following volumes:

• Pressed oil - 8000 tons

• Refined oil - 600 tons
• Deodorized oil - 600 tons

Specifics of oil production activity

• Large scope of warehouse • Insufficient development of

facilities (hundreds of
warehouses, hundreds of
thousands of cubic meters of
areas).
• Significant amount of
dangerous facilities and
cargos from the point of view
of provision with industrial
safety.
• Large fleet of special
equipment of various
applications.
• Tens of thousands of
inventory items with various
conditions of storage, large
transport and information
infrastructure.
• Specific geo-climatic
conditions.
• No determination of demand
for goods and commodities
(not clear dependence
between quantity of
purchased goods and
commodities from product
quantity, i.e. extracted oil).
• Importance of following rules
of industrial safety and labor
protection in transporting
 scope of delivery time, large-size and heavy cargo.
presence of monopoly
suppliers.

• Significant territorial
remoteness of warehouse,
production and service
facilities.

CUSTOMER SERVICE
Customer service is really the fuel that drives the logistic supply chain. Having
the right product, at right time, in the right quantity, without damage or loss to
the right customer is an underlying principle of logistic system that recognizes
the importance of customer service.

Customer satisfaction:
As we are confidently moving in the path of success our
foremost objective is to maintain and enhance our market
position by providing complete satisfaction to our customers. In
our Endeavour to offer excellent spectrum of edible oils, we
consistently emphasis on research and development and
quality aspect so that best product is offered to our clients, that
provide them ample opportunity for them to grow. With the
judicious use of state-of-the-art technology, we ensure timely
delivery of our quality products and this leads to complete
satisfaction to our clients.

Customer service provided by our company:

Reverse logistics:-

There are many times problems taking place in the production

department, in handling, etc. Due to these the product quality
goes down. Customer getting this products can cause troubles.

For example,

Some of times in our company a batch of product is tested for

its effects and it is found defective, or not appropriate for the
purpose it is intended. Then the entire batch of oil products
back by the company and scrapped. This kind of strong
Reverse logistic system is adopted by the company.

Company website:

We have also launched our company Website

www.agrocityoils.com for getting feedbacks from the customers
and complaints and grievances of them. This website also
displays various products and their information and also gives a
brief history of the company and their operations. The website
is easily accessible to the customers 24 hrs to them.