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PRESENTATION OF PROCUREMENT MANAGEMENT BASED ON A G

“PRUDENTIAL FRUITS PROCESSING COMPAN


BY

ROLL NO. 7 – PRIYARANJAN BHOLA


ROLL NO.17–GAYATRI KULKARNI
ROLL NO.27-KAMALINI MEHER
ROLL NO.37- PALLAVI OJHA
ROLL NO.47- MADHUSMITA RATH
ROLL NO.57- SUSMITA TRIPATHY
AND
ROLL NO. 45 – YESIN PHUKAN
CASE HISTORY
KENTUCKY COMPANY + HARYANA AGRO INDUSTRIES
CORPORATION
=
PRUDENTIAL FRUITS PROCESSING COMPANY
LIMITED ( PFPCL )
KAPURA IN JIND DISTRICT OF HARYANA

qCapacity of processing 30 tones of tomato


per hr ( 3 shifts each of 8 hrs per day )
qProcessing season – 60 days
qCompetitors – NAFED
, KISSAN , FSL , VOLFARM
qCompetitors capacity – max
4000 tones
TRENDS AND CONDITIONS

ato production area


onditions for existing tomato varieties for high yields]

nnes per hectare

Production-15000 tonnes ,Area – 800 hectare, Price range -Rs70


STRATEGIES ADOPTED
• Formulation( Well thought strategy )- increase yield per
hectare
• Remunerative (Productivity increase = more remunerative)

Contract Farming-
vAssurance of higher
yield at assured price(Rs
1200 per tonne)

vContract growers in 5
districts of 9production
zone.

Raw material quality

Demonstration

INITIATIVES
CONTRACT FARMERS

• 336 FARMERS ENTRED INTO CONTRACT


• EXPECTED YIELD-30 TONNES PER HECTARE
• CRITERIA-
 Minimum 3 Hectare Area Per Farmer
 Minimum 1/3 rd of expected yield

PROCUREMENT – Area divided into nine


regions, five districts
EXPERIENCE

 FIELD SUPERVISORS VIEWS


• MAJOR DEFAULTERS - LARGE FARMERS
• MAJOR SUPPLIERS - NEW FARMERS
• DAMAGE - PESTS AND DISEASES

TARGET

 MR. DEVI LAL – EXECUTIVE DIRECTOR OF THE


COMPANY
ACHIEVEMENT OF THE FULL UTILISATION OF

CAPACITY IN 2003
• BASED ON 1.AREA CONTRACTED
 2.PRICE BEHAVIOUR
 3.EXPECTED YIELD
PRESENT SCENARIO FACED BY COMPANY

2001 2002 2003

TOTAL TOTAL TOTAL


PROCUREMENT PROCUREMENT PROCUREMENT

23000 TONNES
PRESENT SCENARIO
25000 TONNES 17000 TONNES
ISSUES AND CHALLENGES
• Rise of tomato price in
open market
• Occasional shut down of
plant
• Under utilization of
capacity
• Achievement of below
expected procurement
• Failure in meeting the
export commitment
• Dent in company’s
reputation

ISSUES AND CHALLENGES
• ADVERSE CLIMATIC
CONDITIONS
• PESTS AND DISEASE
ATTACK
• MAINTAINING
COMPANY’S
IMAGE
• SUCCESSFULLY
ACHIEVING THE
TARGET
PROCUREMENT FACT

PR
IC
E

PROCUREMENT
ALTERNATIVES PROVIDED :
üPaying higher price to buy
tomato from open market
üUse of New Hybrid Varieties
üIncrease area under production
üDisease Resistant , Early and
late maturing
BEST ALTERNATIVES AND
DISCUSSION
vProcurement Management:
 (a)Supply chain management
 (b)Flexibility of contract
vRelationship management with farmers
vIncrease area production by addressing
small farmers
vA well designed team of supervisors to
check loss of produce at the initial
stage from pests and diseases
vTake into consideration the risk factor of
agriculture and make pre-
arrangements to check it.
CONCLUSIO
N
A Conjoint Efforts Of

Research And
Extension,
Production, Purchase,
Procurement, Finance
And Marketing
Departments Towards
Success Of Prudential
Fruit Processing
Company.
Y O U
N K
T HA