Mitchell`s fruit farm

MITCHELL`S FRUIT FARM(Pvt. Ltd)

University of Education okara


Submitted to:

Medam Mehvish Afzal

Muhammad Umair

Roll no:3029

Ali Raza

Roll no:3013

Zeeshan Yousaf

Roll no:3010

Sohail Amain

Roll no 3040

MBA 4rd (Eve)

University of Education okara campus.

Submitted by:

Introduction:

Francis J. Mitchell arrived in Bombay from Scotland at the end of World War

I. He had been invited by his brother who was already established in North

Western India as contractor to the government for construction of the

railway network. At that time, an opportunity came to his way in the form of

the emerging irrigation system being laid out in the canal colony districts

of West Punjab. He was successful in obtaining the lease of 720 acres of

agricultural land in the Montgomery (Later Sahiwal but now it is in Okara

District premises) district. He initiated the business of growing grapes for

eventual sale as dried raisins and sent his younger son Richard to Australia

for training at Mildura which was well known as a center of specialization in

the field of horticulture. The Company, with Francis Mitchell as its Governing

Director and his two sons Leonard and Richard as Directors, wasincorporated in 1933 and given the name Indian Mildura Fruit Farms Ltd.


Introduction(Cont.):

Mitchell’s is the only major food company in Pakistan today with fully

integrated operations having its own growing and processing facilities at

one location The success of Mitchell’s brands is the result of the corporate

emphasis laid upon Quality Control reinforced by Research & Development.

The R & D section prepares new recipes and formulations whereas the QC

section ensures selection of the finest fruits and error free processing and

packaging, thus ensuring that all products live up to the consumers’ highexpectations.

The production facilities and factory offices are situated in the Renala khurd

near district Okara. This place is about 115 kilometers far from the head

office of the company in Lahore


Introduction(Cont.):

This factory is lying in the vast area of about 10 acres. The farms of

MITCHELL’S Fruit Farms Limited are also occur between Renala khurd and

Okara. The distance between Renala and Okara district is round about 13km. The farms of the company lying on the area of 450 acres.


Vision & Mission Statement:

To be a leader in the markets we serve by providing

quality products to our consumers while learning from

their feedback to set even higher standards.

To be a company that continuously enhances its

superior technological skills to remain internationally

competitive in this day and age of increasing

challenges.

To be a company that attracts and retains competent

people by creating a culture that fosters innovation,

promotes individual growth and rewards initiative and

performance.


Vision & Mission Statement(Cont.):

To be a company which optimally combines its

people, technology, management systems, and

market opportunities to achieve profitable growth

while providing fair returns to its shareholders.

To be a company that endeavors to set the highest

standards in corporate ethics.

To be a company that fulfills its social responsibility


Organizational structure:

Board of directors

Advisor

Chairman

MD/CEO

ES AM CFO MM SCM


Financial structure:


Nature of business:

It engaged in the manufactured and the

sale of various farms and confectionery product.


Products:

Grocery Products Confectionery

Products

New products

Bottled water Chocolates Fruit Punch

Vinegar ButterScotch Fruitica Orange

Pickles Coconut Affair Yum! Ketchup Stand-up

nutritious Canned Fruits &

Vegetables

Fruit Bon Bons Apple Jelly Junior

tasty Pickles MilkToffees Hot & Sweet Sauce

Marmalade Candies Synthetic White Vinegar

Jallies Jaam-e-Hayat

Fruit jam Mango Hyderabadi Pickle

Fruit Drinks Spinach Puree

SquashesUniversity of Education okara

Financial sources:

The authorized capital is 100 million and issued and paid up capital of

company is 43.75 million. The loan took by the Mitchell is 82 million.

These are the financial sources of Mitchell Company:

Habib bank Ltd

Askari bank Ltd

Standard charted bank

MCB bank

Allied bank Ltd

National bank of Pakistan


Example of similar company:

Gourmet (Pvt. Ltd.)

Shazan (Pvt. Ltd.)

Giggly (Pvt. Ltd.)

Candy land (Pvt. Ltd.)

Tetra Pak (Pvt. Ltd.)


Balance Sheet:

Items Rs. In 000 %

Non Current Assets 698362 49.83

Current Assets 703215 50.17

Total Assets 1401577 100

Equity 578913 41.30

Non Current Liabilities 306366 21.86

Current Liabilities 516298 36.84

Total Eq.&Lib. 1401577 100


Analysis of

BS & P&L

Account:


Memorandum of Mitchell`s fruit farm:

Name of company.

The name of company is “Mitchells fruit farm private limited “

Its registered regional sale office(central ) located in Renala khurd and regional sales office located in 40-A,zafar ali road,gulbarg 5 lahore Pakistan.

The object of the company is provide safe and sound Grocery Products and Confectionery Products to customer .

Company concern for loan and financial aid to banks .

The capital of company is 100 million

Property Rights:

Given proprietary rights by L. Rose and Company Ltd. of England in 1946 because of its dedication to quality and technical expertise.

Only Pakistani manufacturer and distributor of Lime Juice Cordial and Lime Marmalade in Pakistan and Afghanistan.


http://www.mitchells.com.pk/products/productcategory.asp?pcategnam=grocery

http://www.mitchells.com.pk/products/productcategory.asp?pcategnam=confectionery

Memorandum of Mitchell`s fruit farm:

The subscriber of the company stated below.

S.M mohsin, chairman, non executive director

mujeeb rashed chief executive officer

sitwat mohsin non executive director

mehdi mohsin executive director

moaz mohiuddin independent non executive director

syed faisal eman non executive director

Umme kalsoom imam non executive director

jamal naseem non executive director (nit nominee)

Mitchells is private limited company and limited by shares the share capital of company is 43.75 million .its memorandum printed and signed by each subscriber.


Article of Association of Mitchell`s fruit farm:

Its manufacturing concern it has three types of share (issued ,subscribed and paid up capital ) its share are transferable and offer in lahore and Karachi stock exchange .

Its annul general meeting held in jan31.2015 on Saturday at register office of the company at 40-zafr ali road gulbarg Lahore to transact following business.

Ordinary business

1 . to confirm the mints of last general meeting

2. to analyses the audit report

3. to approve payment of cash dividend by the board of director .

4. to appoint the auditor for the year ending December 31 ,2015


Article of Association of Mitchell`s fruit farm

(Cont.):

The retiring auditors namely Messers A. F. FER GUSON and Co. CHARTERET ACCOUNTANTS being eligible for reappointment .

Ever member of the company having right of votes

50 %Dividend as recommended by the board of director in general meting

the reserve of company 9.6 million.

There are three types of meetings held each year

Board of director meeting

Audit committee

HR and remunerations committee meeting


Article of Association of Mitchell`s fruit farm

(Cont.):

These are the auditor of the company

Maaz mohiuddim

s.m mohsin ,

syed faisal imam

Indemnity of the company is S.M Mohsin

The arbitrator of the company Atif raiz

The legal adviser of the company R. Minto & Mirza

Its article is register according to companies ordinanace 1984.its article

also printed and signed by the each subscriber


Article of Association of Mitchell`s fruit farm(Cont.):

These are notices issued in general meeting the individual member who

have not submitted copy of there valid CNIC to the company or againreminded to submitted at head office till july o5,2015.

The share transfer book of the company will remain close from jan.23 ,2015

to jan.31,2015

A member eligible to attend and watch in meetings and also appoint andother member as his proxy to ten and vote on his behalf ..

The share holder immediately notify the change the address


Prospects:

“Mitchells fruit farm private limited renala khurd (okara) Punjab pakitan

Name of director

S.M mohsin (chairman,non exective director)

mujeeb rashed ( chief executive officer)

sitwat mohsin (non executive director)

mehdi mohsin (executive director)

moaz mohiuddin (independent non executive director)

syed faisal eman (non executive director)

Umme kalsoom imam (non executive director)

jamal naseem non excutive director (nit nominee)


Prospects(Cont.):

Name of auditor

A.F Ferguson & company chartered Accounts

Every share holder right of voting power and to attend meetings which are

held in company

the estimated preliminary expense of company is 10.23 million

Return od debenture and share allotted 50% of reserve

a subscriber can purchase minimum 100 share according to company rules

the name of undertaken is S.M Mohsin


Prospects(Cont.):

Business contract

They have contract with these companies

Ayun Chaudhary investment (Ltd)

Baurme oil mills Ltd

Continentle capital Mangement PVT

Fikree’s SMC-pvt Ltd

Lakhiani securities Pvt

Perin din shaw Pvt

Sarfraz mehmood Pvt


Prospects(Cont.):

The firm’s earnings per share (EPS) are generally of interest to present orprospective stockholders and management.

The earnings per share represent the number of dollars earned on behalf of

each outstanding share of common stock.

They are closely watched by the investing public and considered am

important indicator of corporate success.

Sales of the company

Sales of the company according to P&L Account 2014 is 975.12 million.

Production cost of company is 644.56 million according to balance sheet

2014

They are target both domestic and international market their product sentto 55 different countries


Market strategies of Mitchell’s:

Personnel and flexible customer services

Special feature in the product

Special packaging

Continues survey

Enhance of financial resources

Providing good services

Establish reputation and good will

Batter accounting system

Fulfill the market demand

Using all technological resources like internet for advertisement

Using all technology University of Education okara

Operational strategies of Mitchell’s:

These are Operational strategies

Focus on product development

Focus on services development

Focus on development core competency

Focus on customer

Focus on our resources

Safe and sound production area


Local Supplier of Mitchell’s:

Packages Pvt. Ltd.

Printech

Glass Industry

Flavors Maker Companies


SWOT Analysis:Strength and opportunity:

Jam, Jellies, Marmalade, Sauces & Pickles

They are termed as cash cow of Mitchell’s

Fully integrated operations

Having own growing and processing facility

Strong and continuous Research & Development

A smooth distribution system and nationwide coverage

Right products, quality and reliability

Management is committed and confident

Mitchell’s can continue its dominance as innovator

Can maintain its position as a market leader

International and domestic market expansion

Introduce new food products and innovation also

End-Users Response to new ideas

Can be a tend setter in market

Can surprise its competitorsUniversity of Education okara

SWOT Analysis(Cont.)

Threats and weakness:

During the year the Company’s two important investments in the Fruit

Pulping Line and Coal fired Boiler were completed and successfully started.

Thus Tomatoes, Mangoes and Apples that are used by the Company in

making its products were processed on this most modern, hygienic and

Food safe plant with higher efficiency and lower energy consumption.

Some of the Fruit Pulps manufactured are already shipped to export

markets.


SWOT Analysis(Cont.)

Less support of Promotions.

Hardly advertising on the Media.

The management style that has adopted by the company is bureaucratic Degree of formalization and centralization is high.

Not serious in promoting its brands.

Don’t have any short term and long-term decision-making plan.

Decreasing growth rate and eventually losing market shares.

As we know that there is severe competition in the food industry, but still the availability of Mitchell’s products is very poor.

Company is offering fewer discounts as compare to other relevant industry’s companies like Shezan, National, Rafhan, Salman’s and Ahmed to retailers and distributors.


HRD & FO:

Human Resource Development:

Whereas on the job training continued in all our functional disciplines for continuous improvement in our Operations, several of our technical staff were trained in the operation of new technologies introduced at our plant both locally by foreign trainers as well as abroad.

Future Outlook:

The Company will continue to focus on providing high quality products to consumers that have been processed from fresh farm produce. Our products will be designed to improve the quality of life of consumers both in terms of convenience and pleasure. We will continue to enhance our mutually beneficial relationships with the farming communities surrounding our factory thus improving their economic wellbeing.


Corporate and Financial Reporting Framework:

Management of the company, present fairly its state of affairs, the results of its operations, cash flows and changes in equity have been maintained. consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment

Increased competition (shezan food ,national food,rafahan food etc.)

Politically Instability

Additional general sales taxes and tough economic conditions of the country are reducing the purchasing power of the people.

Increasing Market Share of Competitors.

The competition in the food processing industry is much severe than the past. Now the many national companies are joining hands with multi-national corporations for additional support in terms of marketing activities, production expertise and financial resources.


Conclusion:

Mitchell’s is very much conscious and careful about its sales and about the

customer level satisfaction. Mitchell’s Fruit Farms is a large manufacturing

concern which produce different type of eatable products the company

objection regarding to managing capital company are to safe Gard the

company ability to continues as a going concerns in order to provide return to

share holders and benefits to other stake holders and to maintain and optimal

capital structure to reduce the cost of capital the company adjust the amount of

dividend paid to share holder return capital to share holder through repurchase of

share issue new share or sell asset to reduce there debts. Company getting huge

profits last year and giving all rights to their share holders. They are providing employment and running different non profits organizations.


References:

http://www.mitchells.com.pk/

Self visiting through Management

Prospectus of Mitchell's

Annual report of Mitchell's 2014

http://www.slideshares.com


http://www.mitchells.com.pk/