However, competition increased with the start of 70 units in the unorganized sector between and It had entered the northern sector in They are not designed to present illustrations of either correct or incorrect handling of administrative problems. Induction of Family Members Mohan Kumar had six sons. The market response to Good Health biscuits was not very encouraging.
It also offered to supply the pre-printed packing material with APL name. The other three sons of Mohan Kumar started their own trading concerns in metal parts and containers. He decided to invest his surplus cash to diversify into making glucose biscuits and selling them under the same brand. It was the proportion of ingredients that enabled the company to develop a secret formula. The family members met on the fifth of every month to review the operations and performance of the businesses, and think through the issues for the future. The total demand from these institutions was estimated to be around 2, tonnes.
Vivek, the second eldest, joined the company in after completing his graduation in mechanical engineering. Shah answered in the affirmative.
The names of places, products and people are disguised.
Kcpl Acpl Case Study | Case Study Solution | Case Study Analysis
Sanjay, the youngest,joined the business in after completing his graduation in arts. However, competition increased with the start of 70 units in the unorganized sector between and With the experience gained, he set studh a production unit in Jaipur in Some of them were set up in the backyards of entrepreneurs under unhygienic production conditions. Its monthly capacity in was 1, tonnes.
It competed with both national and regional players in various biscuit segments. The business was profitable but the acceleration of production was constrained by the scarcity of ingredients like maida, sugar, and vanaspathi. These practices had enabled the company to minimize wastage and improve responsiveness to customer’s orders.
It would also help them utilize the surplus capacity. It could not increase its prices to take care of rising costs of labour and material. Alok Kumar looked after finance and liaison functions; Vivek looked after human resource management and manufacturing; and Sanjay was responsible for marketing, logistics, and administration.
In there were two large national and six regional manufacturers. This had led to uneven production. The temperature needed for baking varied from stage-to-stage as the quality of biscuits depended on the care with which the temperature was maintained at different phases of baking. It could not withstand the competitive pressure.
It was the proportion of ingredients that enabled the company to develop a secret formula. The sons of Alok, Vivek and Sanjay were studying in school.
(PDF) Case Study Kanpur Confectioneries | Kunal Relwani –
It had entered the northern sector in Hence, stuey and its sales declined. The total demand from these institutions was estimated to be around 2, tonnes. Inhe set up a candy making unit on one and a half acres plot in Radha Industrial Estate, Kanpur, Uttar Pradesh UP state and became the first entrepreneur to set up a candy-making unit inthat state.
APL had stressed in its advertisements that its biscuits kc;l milk solids. It had not changed its prices in the last three years. Mohan Kumar faced a financial crisis.
However, it had a kcp, position in the South. How Pearson would view the venture was another issue. The company believed in the policy of ploughing back the surplus. KCPL could not compete on costs as its costs were higher caxe those of the other manufacturers. He decided to shift the production to another state and reduce costs. The disadvantage was in the possible loss of independence. The net profit margin on the biscuit business at 25 per cent was attractive.
He also mentioned that his company would provide technical guidance to the CMUs and offer fair conversion charges.