The other three sons of Mohan Kumar started their own trading concerns in metal parts and containers. The family members earned a salary. Sanjay, the youngest, , joined the business in after completing his graduation in arts. The process of production was simple and the equipment needed for production were available indigenously. It had introduced quality control procedures based on Japanese practices. Would they be asked to make additional investments in manufacturing?
In , he 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. The names of places, products and people are disguised. The company sought the advice of technical consultants on issues relating to capacity expansion, equipment selection, and productivity improvements. Skip to main content. Owing to increased competition from both organized and unorganized players the margins declined. It had desired to expand its supply to the market by subcontracting orders to other manufacturers. Pearson relied on the expertise of KCPL.
By 87 it had become a leading player in the sector with a monthly sale of tonnes. Its officers inspected the quality of the biscuits before dispatch. It would also help them utilize the surplus capacity.
The mixed dough was fed to the moulding unit and the shaped wet biscuits were fed to the oven for baking. The sons of Alok, Vivek and Sanjay were studying in school. Decision making within the family was stufy by them as participative. Click here to sign up.
KCPL studdy not sell loose biscuits to the Kirana shop. However, competition increased with the start of 70 units in the unorganized sector between and KCPL depended on both permanent and casual workers for its operations. The cxse of A-One biscuits was two-thirds of ‘Good Health’ biscuits.
APL was an overall national market leader with a reputation for quality and price competitiveness. Alok Kumar, vase eldest son of Mohan Kumar, joined the business in after completing his graduation in commerce.
It had promised the sub-contractors that it would compensate them adequately in terms of volume of business and conversion charges.
The names of places, products and people are disguised. The agreement with Pearson was signed at its corporate office in Paris in May KCPL could not compete on costs as its costs were higher than those of the other manufacturers. The family members earned a salary.
Would there be interference? The process of production was simple and the equipment needed for production were available indigenously. The ready-to-eat biscuits czse sent to the packing department where they were manually packed in packets of grams.
(PDF) Case Study Kanpur Confectioneries | Kunal Relwani –
The initial order from Pearson was for 50 tonnes per month between May and March It could not charge a higher price as its candies were not considered by the market to be different from others.
The business was profitable but the acceleration of production was constrained by the scarcity of ingredients like maida, sugar, and vanaspathi.
He decided to shift the production to another state and reduce costs. The demand for buscuits was growing at more than 15 per cent per annum.
These practices had enabled the company to minimize wastage and improve responsiveness to customer’s orders. The Proposal APL offered to place an initial order for producing 70 tonnes of Glucose biscuits per month.
Cases of the Indian Institute of Management, Ahmedabad are prepared as a basis for class discussion. Its plant located at Mumbai, Maharashtra State, had a capacity of tonnes per month. In the new competitive environment, KCPL got stuck in the middle.
Would they be asked to make additional investments in manufacturing? Maida was cleaned and fed to the mixing unit manually. Prince Biscuits, promoted by Ghanshyam Das inwas the leader with a monthly sale of tonnes. The daily wage rate was Rs.
Alok Kumar looked after finance and liaison functions; Vivek looked after kpcl resource management and manufacturing; and Sanjay was responsible for marketing, logistics, and administration. Sanjay, the youngest,joined the business in after completing his graduation in arts.