TABLE OF CONTENTS
COMPANY PROFILE34How we do?
4Achievement
NATURE OF COMPANY45CORE VALUES
5Our Mission
5Our Vision
PRODUCTS6MANUFACTURING PROCESS7Manufacturing process of Fruit
juices712Manufacturing process of Ice cream
14RELEVANT DATA
14Fruit in juices
14Nurpur Cheese
15ANALYSIS
15Manufacturing of Fruit in juice
16Manufacturing of Nurpur Cheese
COMPANY PROFILECompany behind NurpurNoon group of companies lies
behind the Nurpur brand and along with the dairy products and
juices the noon group is developing in cement and sugar
industry.
Who We Are
Noon Pakistan Limited was incorporated in Pakistan on 26
September, 1966 as a Public Limited Company and its shares are
quoted on Karachi Stock Exchange and Lahore Stock Exchange,
In the private sector, Noon Pakistan Limited is the first
Company in Pakistan to operate a Spray Dryer for processing of milk
powder. The Company is a member of Noon Group of Companies and is
being overseen and managed by highly qualified, experienced,
technical & business professional Directors and Senior
Executives.
What We Do
We at Noon Pakistan Limited are committed to make sustainable
efforts towards optimum utilisation of its resources for the best
possible results for not only to safeguard the interests of all its
stakeholders but also to fulfill our obligation to serve the
Community and to become a leading food company in Pakistan
maintaining the highest quality standards.
Building an excellent reputation over the last 45 years, Noon
Pakistan Limited continues to be at the forefront of quality
products. By the grace of God, it has achieved market leadership in
several food categories with a very strong portfolio consisting of
Butter, Cheese, UHT Milk, HCLF, Pasteurised Milk, Tea whitener,
Flavoured Milk, Cream, Desi Ghee, Fruit Juices, Honey and Jam.
How We Do
Products are made with great area, and marked with our quality
seal of recognition. We undertake various rigorous quality control
tests at all stages of procurement / processing to ensure quality
end products. All processes are undertaken by employing
state-of-the-art technology and equipment. Therefore, we take pride
in the fact that Noon Pakistan Limited is recognized and
appreciated by the Customers as one of the leading Companies in
Pakistan that are providing pure and quality products.
Achievement
The Company has achieved a growth of 682.73% in turnover in a
span of four years i.e. turnover of the Company has grown from
Rs.311.27 million in 2004 to Rs.2,436.41 million in 2014, through a
dedicated and experienced sales team.
It is a matter of great pleasure that our Organisation has won
the most prestigious and acclaimed brand recognition award Brand of
The Year 2006-07 in category Butter & Brands of The Year
2007-08 in categories Butter, Cheese & Flavoured Milk &
Brand of The Year 2008-09 in category Butter & Brand of The
Year 2010 in category Butter, Cheese & Falvoured Milk. This is
just a beginning and we are confident that our organization will
strive continuously to improve its brands performance to remain in
the forefront of the dairy industry in Pakistan. It is also a
matter of great honour that our Organisation is the first Dairy
Company in Pakistan to be certified under ISO 22000:2005.
Nature of Company
A wholesome life is what Nurpur stands for with Health, Energy
and Taste, being the vital ingredients. Our national team of
collectors, packers, processors, shippers and employees is
committed to consistently providing safe, high-quality Hygienic
Milk, Pure Juices, Healthy Nectars, Better Butter and other food
products, while protecting the environment in which these products
are manufactured and processed.
CORE VALUES Ideas are constantly challenged to develop next
generation solutions.
Business is conducted openly and fairly but we compete
fiercely.
Team-work is encouraged with individual flair for the best
results.
Tough goals are set and we enjoy the challenge of beating
them.
Environment We value preservation of the environment and
sustainable organic agriculture.
Community We value mutually supportive relationships among
members of our local and global communities.
OUR MISSION
Nurpur is committed to supplying the consumer and our customers
with the finest, high-quality products and to leading the industry
in healthy and nutritious products.Nurpur supports these goals with
a corporate philosophy of adhering to the highest ethical conduct
in all its business dealings, treatment of its employees, and
social and environmental policies.
OUR VISION
Our vision at Nurpur is to be a transformative force in our
community and world at large and to serve as a model of a
sustainable business alternative that nurtures social and economic
well-being in an environmentally sensitive manner.
PRODUCTS
MANUFACTURING PROCESSManufacturing process of Fruit juices
Raw Materials
Fruit The primary ingredient in orange juice is, of course,
oranges. Oranges are members of the rue family (Rutaceae), and
citrus trees belong to the genus Citrus. Oranges, along with all
citrus fruits, are a special type of berry botanists refer to as a
hesperidium. Popular types of oranges include navel, Mandarin, and
Valencia. A blend of different types of oranges is generally used
to provide a specific flavor and to ensure freedom from bitterness.
Selection of oranges for juice is made on the basis of a number of
factors such as variety and maturity of the fruit. The fruit
contains a number of natural materials that contribute to the
overall flavor and consistency of the juice including water, sugars
(primarily sucrose, fructose, and glucose), organic acids
(primarily citric, malic, and tartaric), and flavor compounds
(including various esters, alcohols, ketones, lactones, and
hydrocarbons.)
Other additives Preservatives such as sulfur dioxide or sodium
benzoate are allowed by federal regulation in orange juice although
the amounts are strictly controlled. Similarly, ascorbic acid,
alpha tocopherol, EDTA, BHA, or BHT are used as antioxidants.
Sweeteners may be added in the form of corn syrup, dextrose, honey,
or even artificial sweeteners. More often, though, citric acid is
added to provide tartness.
Manufacturers may also fortify juices with extra vitamins or
supplemental nutrients such as vitamin C, and less commonly,
vitamins A and E, and beta carotene. (Beta carotene is naturally
present in oranges, but only to a small degree.) There is some
concern about the stability of these added vitamins because they do
not survive the heating process very well. Calcium in the form of
tricalcium phosphate is also frequently added to orange juice.
The Manufacturing Process
Harvesting/collection Oranges are harvested from large groves.
Some citrus growers are members of cooperative packing and
marketing associations, while others are independent growers. When
the mature fruit is ready to pick, a crew of pickers is sent in to
pull the fruit off the trees. The collected fruit is sent to
packing centers where it is boxed for sale as whole fruit, or sent
to plants for juice processing. The oranges are generally shipped
via truck to juice extraction facilities, where they are unloaded
by a gravity feed onto a conveyor belt that transports the fruit to
a storage bin.
Cleaning/Grading The fruit must be inspected and graded before
it can be used. An inspector takes a 39.7 lb (18 kg) sample to
analyze in order to make sure the fruit meets maturity requirements
for processing. The certified fruit is then transported along a
conveyor belt where it is washed with a detergent as it passes over
roller brushes. This process removes debris and dirt and reduces
the number of microbes. The fruit is rinsed and dried. Graders
remove bad fruit as it passes over the rollers and the remaining
quality pieces are automatically segregated by size prior to
extraction. Proper size is critical for the extraction process.
Extraction Proper juice extraction is important to optimize the
efficiency of the juice production process as well as the quality
of the finished drink. The latter is true because oranges have
thick peels, which contain bitter resins that must be carefully
separated to avoid tainting the sweeter juice. There are two
automated extraction methods commonly used by the industry. The
first places the fruit between two metal cups with sharpened metal
tubes at their base. The upper cup descends and the fingers on each
cup mesh to express the juice as the tubes cut holes in the top and
bottom of the fruit. The fruit solids are compressed into the
bottom tube between the two plugs of peel while the juice is forced
out through perforations in the tube wall. At the same time, a
water spray washes away the oil from the peel. This oil is
reclaimed for later use.
The second type of extraction has the oranges cut in half before
the juice is removed. The fruits are sliced as they pass by a
stationary knife and the halves are then picked up by rubber
suction cups and moved against plastic serrated reamers. The
rotating reamers express the juice as the orange halves travel
around the conveyor line.
When the mature fruit is ready to pick, a crew of pickers pull
the fruit off the trees. Once collected, the fruit is sent to
plants for juice processing. Before extraction, the fruit is
cleaned and graded. Some of the peel oil may be removed prior to
extraction by needles which prick the skin, thereby releasing the
oil which is washed away. Modern extraction equipment of this type
can slice, ream, and eject a peel in about 3 seconds.
The extracted juice is filtered through a stainless steel screen
before it is ready for the next stage. At this point, the juice can
be chilled or concentrated if it is intended for a reconstituted
beverage. If a NFC type, it may be pasteurized.
Concentration Concentrated juice extract is approximately five
times more concentrated than squeezed juice. Diluted with water, it
is used to make frozen juice and many RTD beverages. Concentration
is useful because it extends the shelf life of the juice and makes
storage and shipping more economical. Juice is commonly
concentrated with a piece of equipment known as a Thermally
Accelerated Short-Time Evaporator, or TASTE for short. TASTE uses
steam to heat the juice under vacuum and force water to be
evaporated. Concentrated juice is discharged to a vacuum flash
cooler, which reduces the product temperature to about 55.4 F (13
C). A newer concentration process requires minimal heat treatment
and is used commercially in Japan. The pulp is separated from the
juice by ultra-filtration and pasteurized. The clarified juice
containing the volatile flavorings is concentrated at 50 F (10 C)
by reverse osmosis and the concentrate and the pulp are recombined
to produce the appropriate juice concentration. The flavor of this
concentrate has been judged to be superior to what is commercially
available in the United States and is close to fresh juice. Juice
concentrate is then stored in refrigerated stainless steel bulk
tanks until is ready to be packaged or reconstituted.
Reconstitution When the juice processor is ready to prepare a
commercial package for retail sale, concentrate is pulled from
several storage batches and blended with water to achieve the
desired sugar to acid ratio, color, and flavor. This step must be
carefully controlled because during the concentration process much
of the juice's flavor may be lost. Proper blending of juice
concentrate and other flavor fractions is necessary to ensure the
final juice product achieves a high quality flavor.
Pasteurization Thanks to its low pH (about 4), orange juice has
some natural protection from
In an automated process, the juice is extracted from the orange
while the peel is removed in one step. bacteria, yeast, and mold
growth. However, pasteurization is still required to further retard
spoilage. Pasteurization also inactivates certain enzymes which
cause the pulp to separate from the juice, resulting in an
aesthetically undesirably beverage. This enzyme related
clarification is one of the reasons why fresh squeezed juice has a
shelf life of only a few hours. Flash pasteurization minimizes
flavor changes from heat treatment and is recommended for premium
quality products. Several pasteurization methods are commercially
used. One common method passes juice through a tube next to a plate
heat exchanger, so the juice is heated without direct contact with
the heating surface. Another method uses hot, pasteurized juice to
preheat incoming unpasteurized juice. The preheated juice is
further heated with steam or hot water to the pasteurization
temperature. Typically, reaching a temperature of 185-201.2 F
(85-94 C) for about 30 seconds is adequate to reduce the microbe
count and prepare the juice for filling.
Packaging/filling To ensure sterility, the pasteurized juice
should be filled while still hot. Where possible, metal or glass
bottles and cans can be preheated. Packaging which cannot withstand
high temperatures (e.g., aseptic, multilayer plastic juice boxes
which don't require refrigeration) must be filled in a sterile
environment. Instead of heat, hydrogen peroxide or another approved
sterilizing agent may be used prior to filling. In any case, the
empty packages are fed down a conveyor belt to liquid filling
machinery, which is fed juice from bulk storage tanks. The filling
head meters the precise amount of product into the container, and
depending on the design of the package, it may immediately invert
to sterilize the lid. After filling, the containers are cooled as
fast as possible. Orange juice packaged in this manner has a shelf
life of 6-8 months at room temperature.
Byproducts/Waste
Byproducts from orange juice production come from the rind and
pulp that is created as waste. Products made with these materials
include dehydrated feed for livestock, pectin for use in making
jellies, citric acid, essential oils, molasses, and candied peel.
Certain fractions of orange oil (known as d-limonene), have
excellent solvent properties and are sold for use in industrial
cleaners.
Quality Control
Quality is checked throughout the production process. Inspectors
grade the fruit before the juice is extracted. After extraction and
concentration, the product is checked to ensure it meets a number
of USDA quality control standards. The most important measurement
in orange juice production is the sugar level, which is measured in
degrees Brix (percentages by weight of sugar in a solution). The
types of oranges used and the climate in which they were grown
affect the sugar level. Manufacturers blend juices with different
sugar levels together to achieve a desired sugar balance. The final
juice product is evaluated for a number of key parameters include
acidity, citrus oil level, pulp level, pulp cell integrity, color,
viscosity, microbiological contamination, mouth feel, and taste. A
sensory panel is used to evaluate subjective qualities like flavor
and texture. Lastly during the filling process, units are inspected
to make sure they are filled and sealed appropriately.
Manufacturing process of Cheese.
Raw Material:
Cheese is made from milk, and that milk comes from animals as
diverse as cows, sheep, goats, horses, camels, water buffalo, and
reindeer. Most cheese makers expedite the curdling process with
rennet, lactic acid, or plant extracts, such as the vegetable
rennet produced from wild artichokes, fig leaves, safflower, or
melon.
Cheese Processing Steps:
Preparing the milk In a typical cheese-making operation, the
first step is preparing the milk factories purchase pasteurized
milk and must add bacteria culture to produce the lactic acid. The
cheese makers let the milk sit until enough lactic acid has formed
to begin producing the particular type of cheese they're making.
duce lactic acid.
Separating the curds from the whey the curds must be separated
from the whey. Animal or vegetable rennet is added, and then the
curds are agitated and cut using large knives. As the whey
separates, it is drained. The curds are then pressed into molds, if
necessary, to facilitate further moisture drainage, and aged for
the proper amount of time. Some cheeses are aged for a month,
others for several years
Pressing the curds Moisture must then be removed from the curds,
although the amount removed depends on the type of cheese. For some
types with high moisture contents, the whey-draining process
removes sufficient moisture. Other types require the curds to be
cut, heated, and/or filtered to get rid of excess moisture. To make
cheddar cheese, for example, cheese makers cheddar, or finely chop,
the curd. To make hard, dry cheeses such as parmesan, cheese makers
first cheddar and then cook the curd. Regardless, if the curds are
to be aged, they are then put into molds. Here, they are pressed to
give the proper shape and size. Soft cheeses such as cottage cheese
are not aged.
Ageing the cheese 4 At this stage the cheese may be inoculated
with a flavoring mold, bathed in brine, or wrapped in cloth or hay
before being deposited in a place of the proper temperature and
humidity to age. Some cheeses are aged for a month, some for up to
several years. Ageing sharpens the flavor of the cheese; for
example, cheddar aged more than two years is appropriately labeled
extra sharp.
Wrapping natural cheese 5 Some cheeses may develop a rind
naturally, as their surfaces dry. Other rinds may form from the
growth of bacteria that has been sprayed on the surface of the
cheese. Still other cheeses are washed, and this process encourages
bacterial growth. In place of or in addition to rinds, cheeses can
be sealed in cloth or wax. For local eating, this may be all the
packaging that is necessary. However, large quantities of cheese
are packaged for sale in distant countries. Such cheeses may be
heavily salted for export (such as Roquefort) or sealed in
impermeable plastic or foil.
Making and wrapping processed cheese 6 Edible yet inferior
cheeses can be saved and made into processed cheese. Cheeses such
as Emmental (commonly called Swiss), Gruyere (similar to Swiss),
Colby, or cheddar are cut up and very finely ground. After this
powder has been mixed with water to form a paste, other ingredients
such as salt, fillers, emulsifiers, preservatives, and flavorings
are added. The mixture is then heated under controlled conditions.
While still warm and soft, the cheese paste is extruded into long
ribbons that are sliced. The small sheets of cheese are then put
onto a plastic or foil sheet and wrapped by a machine.
RELEVANT DATAFruit In juices
The data has been collected somewhat from the report and we have
taken dummy values as the companies have their own secrets and cost
of sales report is not disclosed by the companies, whereas, few
values have been taken from the Directors report which resides in
the annual report of the company.We opted for Make or Buy decision
for Fruit In juices of NURPUR foods.
Number of units = 2,583,165Direct material = Rs. 1.83/unit
Direct Labor = Rs. 4.8/unit
Variable overhead involves fuel and power, repair and
maintenance, freight inwards, travelling, advertising and sales
promotion, utilities for per unit is Rs. 5.32.
Fixed overhead Cost involves depreciation, insurance, salaries
and wages, rent, communication and other operating expenses are Rs.
22,034,397.45/-
Nurpur CheeseIn case of Nurpur Cheese, the company faced a
decrease of 16% in the companys profits because due to its cheese
so we decided to do an analysis of its product of cheese to see
whether Nurpur foods should continue with its ice or should drop
it.
The data for this was also collected from the Directors report
and for the values we consulted the annual report of the company
for the year 2014 and few of them are having dummy values due to
company secrets.ANALYSISMake or Buy:
Fruit in Juice
TitleRs/UnitTotal
Direct Material 1.83 4,742,525
Direct Labor 4.8 12,399,192
Variable OH 5.32 13,742,437.80
Fixed OH 8.53 22,034,397.45
Total Cost20.48 52,918,552.25
Manufacturing of Fruit in juicePer UnitTotal
Cost of Buying:18 46,496,970
Cost of MakingRS./UnitTotal
Direct Material1.83 4,742,525
Direct Labor4.8 12,399,192
Variable OH5.32 13,742,437.80
Fixed OH4.21 10,875,124.65
Total Cost16.16 41,759,279.45
Decision: We will make the product as the cost of buying is
greater than the cost of making (Diff = Rs. 4,737,690.55).Relevant
and Irrelevant costs:Variable overhead involves fuel and power,
repair and maintenance, freight inwards, travelling, advertising
and sales promotion, utilities expenses. All these costs are
included as all these costs are relevant costs and can be
avoided.
Fixed overhead cost involves depreciation, insurance, salaries
and wages, rent, communication and other operating expenses from
which depreciation is a sunk cost whereas insurance is a future
cost. Both of them are irrelevant costs and cannot be avoided. They
will incur whether the product is made or bought. All the other
expenses in fixed overhead cost other than depreciation and
insurance are relevant costs and can be avoided if the product is
bought so they are included in the analysis.Manufacturing of Nurpur
CheeseFor Nurpur Cheese:
Retain or Drop:
Sales 386,905
Variable Expense 200,764
Contribution Margin 186,141
Contribution Margin if Lost 186,141
Fixed Expense That are avoidable:
Salaries and wages74543
Rent53795
Communication or other operating expense35746
Total Fxed Expenses 164,084
Decrease in net operating income as a whole-22057
Decision:
As there is a decrease in net operatig income as a whole due to
the manufacturing of Nurpur cheese so Nurpur foods should retain
the product line of cheese and should continue with its
manufacturing.Relevant and Irrelevant Costs:
Here depreciation of the assets involved in the manufacturing of
cheese is a sunk cost and has to occur even if the product is
dropped or retained so we will not add it in the expenses.
Insurance is a future cost and has to incur as the machinery is
insured and the company has to pay for the insurance even if the
product is dropped or retained.In this scenario, salaries and
wages, rent and communication or other operating expenses are
avoidable costs, thus are relevant with the product of cheese
Variable overhead costs are not included in this analysis.
Given TO:
SIR SHEHZAD BUTT
Prepared BY:
Ahmad Raza
Osama Rashid
Muhammad Waqar Ali
Arbab Muhammad Haris
Sharjeel Samad Memon
7
