PROBLEM

Kanpur confectioneries private limited faces a problem of declining in a sale. They already closed their candy business due to decline in the sales. They have a capacity of producing 240 tonnes per month of biscuits but they are not able to produce according to their capacity. T hey already lost Rs 1, 41,000 .And they are not able to handle the competition. Whenever the in market increase so there sale also decreases.

Objectives

They have to increase their production because they have the capacity of 250 tonnes per month and they are producing only 170 tonnes per month of biscuits. They have to make proper strategies for handling competition in market.

OPTIONS

KCPL can accept the proposal of A-ONE confectionaries private limited by becoming there contract manufacturer. So they can increase their production, they can use
new technology, APL have better distribution in national market and also minimizing the business risks.

They can continue outsourcing the supply of health biscuits to Pearson health drinks limited because they are better conversion rate of Rs 3 per kilo after reimbursing fully the cost of materials

MAIN REPORT Kanpur confectionaries private limited started by Mohan Kumar Gupta in Jaipur, Rajasthan . He started a business of sugar candies under the brand name of MKG. As the competition increased in this market due to thirty units were set up in the unorganized sector . KCPL cost was higher than the other manufacturers so mohan kumar faced crisis. So he changed his plant location to Kanpur, Uttar Pradesh there he advertised MKG in the news paper and hoardings located on the roads. In the end of sixties he was the leader in candies market. He decided to invest his surplus in glucose biscuits market the demand in this market increase at the 15% per annum and the raw materials were very easily available in market. He tied up with the local merchant and commence production in 1970.He extended his range to cream, salt and marie biscuits under the brand name MKG. In 1973 KCPL reached the number two position in the market with the monthly sale of 110 tonne .A-ONE was the national leader. In 1980-81 there business was of Rs 2 crores then they doubled their capacity 120 to 240 tonnes per month. In 1983 there sales were going down due to competition and 1987 they were using old technology but other was using new technology. The KCPL were depended on permanent and casual labors. The labors monthly salary was Rs 2.75 lakhs for 90 permanent workers and casual workers employed on daily basis. The major problem with workers is absenteesism. KCPL is the family based company. Mohan Kumar had six sons out of which 3 joined his company other started their own business .MKG was a popular brand in northern region of India. The main consumer is middle class families in urban and rural area. In 1973-74 the competition in biscuits market is increased due to entrance of 70 units