Report on Wagh Bakri

7/28/2019 Report on Wagh Bakri

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Project report onWagh Bakri

Submitted to: Gandhinagar Institute Of

Technology (MBA)

Prepared by:Jigar Kastawala-127150592013

Vijaysinh Kher-127150592014

Kartik Koshti-127150592015

Apurva Makwana-127150592016


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Preface

The project report is accompanied with practical experience to add

some worthiness to education. This practical training in M.B.A program

develops core competencies of business world. Thus, we have a practical

outlook of the managerial experts and witness the function of management in

real business.

My work in this project is, therefore, a humble attempt towards

this end.

In spite of my best efforts, there may be errors of omissions and

commissions, which may please be excused.


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Acknowledgement

I forward our gratitude to our Head of Department Prof. MILAN

SHAH, all faculty members, the librarian and the Administrative staff of Gandhinagar

Institute Of Technology for their support.

Finally, I express my sincere thanks to Prof. RATNA TRIVEDI who

guided me throughout the project and gave me valuable suggestions and encouragement.

I am also thankful to Wagh Bakri Company staff and the workers and

members who provided and given truly information.


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Certificate

This is to certify that the report on Wagh Bakri Company the is submitted by MR. Jigar

Kasta, MR.Vijaysinh Kher, MR.Kartik Koshti, Mr.Apurva Makwana to Gandhinagar

Institute Of Technology (M.B.A.) Affiliated to the Gujarat Technological University in

fulfillment of the requirement for the completion of practical studies.

___________ __________

Principal Profession

In charge

Date: __________


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Table of Contents

No.

Particulars

Page

No

Preface 2

Acknowledgement 3

Certificate 4

A General in formation

History of the company 7

Introduction of the company 8

Philosophy of the company 9

Organizational Design

10

Departmentalization 11

B Production Management

Introduction 12

Plant Location 12

Product Portfolio 13

Plant Operation 19


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Quality Control 20

C Marketing Management

Introduction 22

D Human Resource Management 25

Strength of personnel department 26

Recruitment Policy 26

Training and Development Program 26

E SWOT Analysis 27

F Awards and Achievements 28

G Bibliography 29


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History of the company

With blessings from Mahatma Gandhi, Sir Narandas Desai set foot on Indian soil in theyear1982. After gaining experience in tea business as an owner of tea garden in South

Africa which then was mired in racial misgivings that made the continuity of his business

a futile endeavor there.He started WaghBakri Tea Company in the year 1982, which then was represented by

small company retail shop at Ahmadabad, Gujarat. Since then the growth of the endeavor

has been phenomenal and presently WaghBakri Tea Company has an employee base of

professional managers and skilled personals with ever increasing space for more, to tendto the expanding group enterprise in India and abroad.

WaghBakri tea house markets various tea brands in loose leaf cartons and tea bags for tea

lovers all over the globethe finest certified black teas from Darjeeling tea estates,

Assam and Nilgiri. The company sells organic black and green tea for the health

conscious.


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Introduction to Company

WaghBakri Company is a family owned tea business amongst conglomerates and mega

corps that tower the International business scenario all over the world. WaghBakri house

is one of the largest tea producers and sellers in India today. The group is making leadingstrides in tea exports and ships in bulk and retail consumer packing to countries all over

the world. Its outstanding performance is credited to excellence in management and a

spirit that results into a quantum jump in annual growth in face of stifling competition

and cut throat scenario that dominates the tea industry today.


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Philosophy of the company

Sir Narandas Desai, our founder, believed that his Company was not just about tea, but

more a confluence of his values and beliefs.

Wagh- Of the strong and the meekBakri- Of co-existence and harmony.

To make Tea a common denominator that overrides differences of caste, creed, culture

or color.The same beliefs are reflected in out Corporate Philosophy even today.

Build long lasting relationships through trust and fair play towards all

stakeholders.

Is result oriented. Contribute positively. Be progressive and lead from the front. Change with the times.

Be socially responsible. Return to the society a share of the gains from

commercial enterprise.


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Organizational Design:

When two or more persons work together towards a common goal, authority and

responsibility are allocated among them so that their efforts may become effective. This

is the task of organizing. It is known as designing of organizational structure.

Top ManagementTop management consists of those executives who have the authority to take the

important policy decision. Top management is referred to as top level or highest level ordirector level. It is made up of the board of directors, managing directors and the other

key officers.

Top management is found invariably in all types of business organization. It is made upof the owner himself in the individual proprietorship, active partner in the partnership,

firm and director and chief executive in a joint stock company. The managing committee

is treated as top-management in co-operative society. At the top level management, there

is more of management than administration. The degree of the success of the business

unit mainly depends on the degree of efficiency of its top level management.

The WaghBakri group is led by Mr. Piyush O. Desai, a highly regarded tea expert andtea taster, with rich experience in the tea business. He plays an active role in the tea

industry by being an involved member and leader of various tea associations. He was the

Chairman of Federation of Tea Traders Association (FAITTA) of India during the years1998-2002. Mr. Desai is also strongly committed to philanthropic cause and regularly

contributes to the society.

Supporting him are Mr. Pankaj R. Desai, Managing Director - Finance and Mr. Rasesh R.

Desai, Managing Director - Marketing.Mr. Pankaj R. Desai has won WaghBakri a respectable, profitable and committed

standing in the financial community. An able tea taster himself, he has over 30 years

experience in the tea industry.Mr. Rasesh R. Desai has created a formidable Marketing network that is enviable even

among multinationals. Our systems have been a source of emulation for many

companies. It also attracts attention as a case study in premier business schools of India.

Mr. Parag Desai and Mr. Paras Desai, management graduates from prestigious businessschools in United States, are hands-on contributors among the fourth generation of

management.

Mr. Harish Parekh, Ex-Chairman of J. Thomas Company and a veteran tea professional,

is on the Board of Directors. Mr. M.P. Shah, Management Consultant from Mumbai is

also part of management team.


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Departmentalization

Meaning:Departmentalization is the process of grouping activities into unit for purposes of

administration. With the help of departmentalization, an organization can take theadvantage of specialization.

Various activities can be grouped into departments on following several basis;

Functions

Customers Products

Regions

Time Process

Combined base

Among the above mention basic, function is the most popular basis of

departmentalization. The enterprise is divided into the departments on thebasis of functions like production, sales, personnel, finance, etc.

From a one man Company to over four hundred employees, the WaghBakri Group is

today a large family.While a strong sense of family bonding overrides the organization, professionalism is

encouraged by including experts in the team from various fields. The work environment

extends adequate freedom for creative and positive contributions to the organization and

society. In the same light while forging ahead to aggressively tap the packaged foodindustry, WaghBakri welcomes talented human resource to share and nurture its success.

At the same time, we are proud to avoid typical large organizations ills like bureaucracy

and high overheads.


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Production:

Introduction

Production is regarded as the most important economic activity in the present day worldeconomy. Production is apart of the business activity. Production is the preliminary

objectives of business. From the society point of new products is of most important

because without production it is impossible to satisfy human needs and desires.

Production takes place when something gifted by nature is transported into a usefulproduct. In other words Production is defined as creation of activity.

Business of every kind has production function in greater or lesser degree. Several types

of company in particular industry have to do with production. Production is creation ofgoods and services but the manufacturing mining, farming, fishing of manufacture is the

most direct concern with production manufacturing changes the form utilizing the goods.

Plant location

When the promoters of an industry take a conscious decision regarding the site of the

industry, it is called location of industry. Location has a very great influence on

productivity, efficiency and profitability of the particular industrial unit.

The plant base is at Dholka in a impressive spread of 65000 yards with a modernProcessing plant and state of art blending and packaging unit that conforms to

International norms in processing, blending and packaging of the finest tea for worldwide

consumption

Product Portfolio

What is Tea (Camellia Sinensis)?

Tea, as you popularly know it, or Camellia Sinensis -- the plant credited with beginning amillion refreshing mornings. Taste is its character. Aroma its identity. Color its

personality. And flavors its ultimate differentiation.


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A tea plant is sensitive to its soil and atmosphere. So much so, that its very flavour and

taste could vary within a single estate and from one day to another. Only the discerning

sense of a seasoned tea taster can distinguish what are similar looking tea granules to anuntrained eye.

WaghBakri tea house dates to the 19th century and is one of the oldest hot tea brands in

India. Seth Narandas a pioneer in tea growing, and blending entered tea business in Indiain year eighteen ninety two. Since then the tea company has grown four fold and is one ofthe largest tea producer and exporter from Indian sub continent. On strength of

entrepreneurship he mastered the art of blending finest organic green tealeaves which

undergo less oxidation and for the warm full bodied flavor, aroma and special tasteblacktea. Sir Narandas added wide range of high quality premium teas to buy online of many

fine varieties as oolong, red and white tea for the benefit of tea lovers all over world.

WaghBakri Organic Tea delivers optimum health benefit.

WaghBakri offers a basket full of brands for different need groups and price

segments.


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A blend of select Assam teas, WaghBakri is

high on strength and instantly refreshes aperson. Consistency of quality through the

years is another feather in our cap. It is

available in Leaf, Dust and Fanning varieties.

WaghBakri (Leaf) with large granules brews a strong and sweet

taste (earning it the sobriquet of Kadak Meethi). WaghBakri(Dust) with very fine granules is the strongest variety and is

preferred by institutional segment. It produces largest number

of cups per kg of tea. WaghBakri (Fanning) is a blend cut

between Leaf and Dust. It is strong in taste and bright in color.

Available in pack sizes of 25 grams, 50 grams, 100 grams, 250 grams, 500 gram poly

pouches and 1 kg PET jar. Now also available in 500 Gms. Lined cartons.

Special International Blend


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WaghBakri is now available for export markets in special packaging.

Available in PET jars of 1/2 lb., 1 lb., 2 lbs. WaghBakri International tea bags are

available for those who prefer tea bags.

Tea BagsWagh Bakri Masala Chai Tea Bags

An Aromatic Delight with a Differencenow gets more out of your regular cup of tea, with the WaghBakri Masala Chai. A fine

International blend of the rich Assam tea and the spices, WaghBakri Masala Chai, in

every sip, is truly an enticing experience.

The hand plucked leaves are blended with exotic spices, which enhance the flavour of thetea, and the tea tastes deliciously different.

No wonder then, the refreshing aroma of WaghBakri Masala Chai fills up your senses

like never before, cup after cup.

Good Morning Tea Bags (Assam)


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Good Morning Tea Bags make for the 'fast and fashionable' way of

drinking fine tea. The Assam blend is available in a pack of 100 tea bags.

These tea bags have a double chamber for faster infusion of tea, and come

sealed in an envelope to keep the tea fresh and flavourful.

Good Morning Tea Bags (Darjeeling)

Good Morning Tea Bags make for the 'fast and fashionable' way

of drinking fine tea. The Darjeeling blend is available in a packof 100 tea bags. These tea bags have a double chamber for faster

infusion of tea, and come sealed in an envelope to keep the tea

fresh and flavourful.

Wagh Bakri Tea Quik Tea Bags


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Tea bags are convenient and hygienic where the normal

elaborate preparation is not feasible. Tea Quik tea bags

from WaghBakri was one of the first ones to enter the TeaBag segment. Tea Quik is especially favoured as it creates

a cuppa that is very close to the normally brewed tea.

Moreover, the advanced imported production facility of TeaQuik produces tea bags free from staple pins.

Available in packs of 25 & 100 tea bags.

Milli

Mili is an ideal brand for those who otherwise preferloose tea. Mili offers good taste & strength with

consistent quality and hygienic packaging along

with great pricing value. Mili is a blend of goodAssam teas and comes in Leaf and Dust form. It

comes in an attractive bandhani pack design.

Available in 1Kg Pack and Pet jars of 500 Gms and

250 Gms.


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Plant operation:

The company produces product range from 1rs. 4gm. packs to 5 kg packs.

It produces on an average 6 lacs packs daily

In 1 single month the company packs 2.5 crores tea packs of various range

Mainly all the machines in the factory are hi-tech excluding few hand operatedmachinery.

About 8 lacs packs of tea in raw materials form is stored in companys go down.


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Quality control

In the absence of quality control many products may be found defective and worthless at

the end of manufacturing process and may be thrown away as scrap. Quality control

avoided such a situation and saves the cost of labour and materials involved in the

production of defective products. Similarly, it also saves the loss which will arise out ofre-working on the rejected products

It ensures the maintenance of high standards of quality and helps the concern using it tobuild their goodwill.

It reduces the expenses of inspection considerably and enables the products to be

produced economically.If certain products are not up to the desired standard of quality, they may have to be

downgraded and sold cheaper. It maintains the standard of quality and thus enables the

producer to secure the standard price for all products.


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Art of Tea TastingTasting is a refined art which encompasses a large number of variables. A tasters palateand olfactory senses are finely sensitive and highly discriminatory.

An experienced taster can identify the garden, ambient conditions of the plucking day and

can even suggest adjustments in the manufacturing process. A taster uses his sharp sense

of sight, smell, touch and taste while judging the quality of the tea.A taster must also have an in-depth knowledge about the prevailing market conditions,

consumer preferences and manufacturing techniques while evaluating the tea. These are

endowments of birth - it would be true to say that tasters are born and not made. Thesenatural talents, however, have to be trained and developed through long years of practice

before the palate is proficient enough to register the minute differences.

Distinguishing between qualities of teas is possible by the human palate only - no wonder

this craft is viewed with a tinge of awe and wonder. The art of tea tasting is valued much

at WaghBakri Group.

The tasting Procedure:

In the tasting procedure, pots and cups made of the finest china, kept spotlessly clean, areused; 2.5 gm of each tea is weighed into pots and water which has just come to the boil is

poured over it. The pots are then covered with a lid and the tea is infused for either 5 or 6

minutes, depending on the individual tasters preference. The liquor is poured out into a

cup and the tea is ready for tasting.The colour and evenness of the infusion, as also its nose, are an index to the intrinsic

value of the brew. This examination takes place in a well lit room away from directsunlight, shade and shadow. Light from the north, which is steady and uniform, is ideal.The scrutiny of the leaf and infusion over, the taster turns his attention to the liquor and

takes a sip from the cup, rolls it in his mouth and spits it out. In that split second, the

palate registers the taste - Flavors, Briskness, Strength and any faults and flaws are

recorded and the taster is ready with his judgment.


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Marketing

Introduction:

After the industrial revolution marketing has become an important tool for all theorganizations.

According to Philip Kotler & Gary & Armstrong, Marketing means the social and

managerial process by which individual group obtain without they need and want throughcreating and exchanging production and value with others.

According to Mr. Henry H. Henson, Marketing is the process of discovering and

translating consumers need and want into products and service specification, creating

demand for this product and services and then in taken expanding this demand.

Defination:A social and managerial group obtains what they need and want through creating and

exchanging products and value with others.

Market:The set of all actual and potential buyers of a product or service. These buyers share aparticular need or want that can be satisfied through exchanges and relationships

(transactions). The size of a market depends on the number of people who exhibit the

need, have resources to engage in exchange, and are willing to offer this resource sin

exchange for what they want.

4 Ps of Marketing:-

Although some marketers have added other Ps such as personnel and packaging, thefundamental dogma of marketing typically identifies the four Ps of the marketing mix as

referring to:

Product:An object or a service that is mass produced or manufactured on a large scale with a

specific volume or units. A typical example of a mass produced service is the hotel

industry. A less obvious but ubiquitous mass produced service is a computer operatingsystem. Typical examples of a mass produced objects are the motor car and the

disposable razor.

Price:The price is the amount a customer pays for a product. It is determined by number of

factors including market share, competition, material costs, product identity and thecustomers perceived value of the product. The business may increase or decrease the

product if other stores have the same product.

Place:Place represents the location where a product can be purchase. It is often referred as the

distribution channel. It can include any physical store as well as virtual stores on internet.


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Promotion:Promotion represents all of the communications that a marketer may use in themarketplace. Promotion has four distinct elements: Advertising, Public relations, Word of

mouth and Point of sale. A certain amount of crossover occurs when promotion uses the

four principle elements together, which is common in the film promotion.

Advertising covers any communication that is paid for, from television and cinemacommercials, radio and internet adverts through print media and billboards. One of the

most notable means of promotion today is the promotional product, as in useful items

distributed to targeted audiences with no obligations attached. This category has growtheach year for the past decade while most other forms have suffered. It is only form of

advertising that target all five senses and has the recipient thanking the giver.

Public relations are where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.Word mouth is any apparently informal communication about the product by ordinary

individuals, satisfied customers or people specifically engaged to create word of mouth

momentum. Sales staff often plays an important role in word of mouth and public

relations.

Target customers:

Mainly the tea packs are for domestic consumption which are supplied to various region

of India

Place: Distribution Network:Most producers use intermediaries to bring their product to market. Then try to forget

distribution channel.A set of independent organization involved in the process of making a product or

service available for use or consumption by the consumer or business user.

Distribution network facilitates to reach customer throughout the country by a strongchain of distribution outlets.

Company distributes through hyper market, super market, grocery stores, hotel &

restaurants.

Promotion and advertising campaign:Promotion and advertisings is mainly done through electronic media like TV, radio etc.

and print media like news papers.

Competitors:The main competitors of Wagh Bakri are Tata and HUL.

Exports:Wagh bakri exports tea to countries like North America, USA, Canada, The Middle East

countries, West AfricaNext face target export countries are Germany, France and Ireland.


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Finance

Definition:

"In a modern, money using economy, finance may be defined as theprovision of money at the time it is wanted".

Meaning:

Financial management is concerned with:

A raising of funds on as favorable terms as possible and

The efficient allocation of funds within the enterprise.

So financial management is concerned mainly with such a matter as, how abusiness co-operation, rises its finance and how it makes use of it.

Since finance is a life-blood of any business, its management merits special

attention. The first aspect to be attended to is the estimation of how much abusiness organization requires and for what purposes. Unless the financial

forecast can be prepared on sound basis the business is likely to run intodifficulties arising from insufficiency or excess of capital fund.

It will have to ensure that the business goes on smoothly and without anyinterruption and the company remains not only solvent as a going concern but it

also able to grow on its own resources generated through surpluses. There must beconstant flow of funds in and out of business unit. A business firm requires

finance to commence its operation, to continue operating and for expansion.

Financial management is concerned with planning, organizing, directing and

control the financial activities of the firm.

Sources of finance:The company mainly manages its financial needs by retaining profits

Wagh bakri is having the growth rate of 11.6% where as the overall growth rate ofindustry is 6 to 7%.


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Human Resource Management

Defination: These are the few definitions of human resource management. Which cover all the

5 points given below:

HRM is a series of integrated decisions that from the employment relationship, theirquality contributes to the ability of organization and the employees to achieve their

objectives.

HRM is concerned with the people dimension in management. Since everyorganization is made up of people, acquiring their services, developing their skills,

motivating them to higher level of performance and ensuring that they continue tothe organization are essential to achieving organizational objectives.

This is true, regarding of organization-government, business, education, health,recreation or social action.

HRM is the planning , organizing, directing and controlling of the procurement,development, compensation, integration, maintenance and separation of human

resources to the end of that individual organizational and social objectives are

accomplished.

Meaning: Simply put, Human Resources Management is a management function that

helps manager recruit, select, train and develops members for an organization.

The various points, which are found in herm, are as follows:Organizations are not mere bricks, mortars, machineries or inventories. They are

people it is the people who staff and manage organizations. HRM involves the application of management functions and principles.

The function and principles are applied to acquisitioning, developing,marinating and remunerating employees in organization.


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Strength of personnel department:

The company has an employee strength of 350 who results in a turnover of 250 crores.

Recruitment policy:

According to Flippo, Recruitment is the process of searching for prospective employeesand stimulating them to apply for jobs in the organization

As Yoder has said. Recruitment is a process to discover the sources of manpower to

meet the requirements of the staffing schedule and to employ effective measures for

attracting that manpower in adequate numbers to facilitate effective selection of anefficient work force

The company recruits people according to their needs from available sources.

Training and Developments:According to Michael J. Juius, The term training is used here to indicate any process by

which the aptitudes, skill and abilities of employees to perform specific job are

increased.

The unit takes various types of labour welfare activities.


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SWOT Analysis

Strength: The company has an advantage of its marketing research.

The company has the quality consistency in their products and they are

very keen about the quality of their product.

The company has a variety of quality product according to the taste ofconsumers.

The company has a great advantage of their goodwill in the market.

Weaknesses: Though the company has third position in the market, yet they have not

captured the all over world market. One of the weaknesses of the company is oolong tea, it is mainly

exported but it is not sold in domestic market even if may captured a goodmarket share.

It is tuff to sell tea in those regions were mainly people are non-tea

drinkers.

Opportunities: The company has good opportunities to grow in the market by introducing

more variety of products according to preferred tastes of consumers.

Threats: The company faces competitions by HUL who has 10% growth in market.

The company faces severe competion with regional players in some

regions.


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Awards and Achievements:

Serving the taste of trust. An idea that's integral to that everything to form part of

continuous development at Wagh Bakri. The chant to excel is the only constant in our

mission philosophy and what propels our vision. As we keep pace with the rapid strides

of changing times, the pursuit only fosters as we imbibe every contemporary inspirationto nurture the pedigree that's build on faith.

Presented herewith are some of the coveted quality certifications that hold testimony toWagh Bakri quality commitment and bespeak the excellence the name reverberates in

millions of hearts every morning.


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Bibliography

Books referred to:

Principles of marketing by Philip Kotler,9th edition, published by Prentice Hall

of India Pvt. ltd., year of publishing-1992

Financial management by Khan and Jain, 2nd edition, published by TATA

MCGRAW Hill, year of publishing-1992

Production and operational management by Ashawathappa and Bhatt, 1st

edition, published by Himalaya publishing house, year of publishing-1999.

Sources of Information:

www.buytea.com

www.waghbakri.com

www.google.com

www.wikipedia.com

Documents

Report on Wagh Bakri