Anwesh-Kumar-Chakraborty_2013PGPX103_Haldiram-In-India

GENERAL OPERATIONS MANAGEMENT – PROJECT REPORT
COMPANY: HALDIRAM’s
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GENERAL OPERATIONS MANAGEMENT
A PROJECT REPORT ON HALDIRAM’s
Submitted by:
Anwesh Chakraborty 2013PGX103

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Table of Contents
Contents
Executive Summary.............................................................................................................3
Company Background.........................................................................................................4
Plant Location......................................................................................................................6
Inventory management ......................................................................................................8
Process design...................................................................................................................10
Quality Process..................................................................................................................12
Distribution .......................................................................................................................13
Problem Identification......................................................................................................15
References.........................................................................................................................15

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Executive Summary
In this report, we seek to study and analyse the Operations Management of Haldiram’s packaged
food SBU, a family owned company operating in Indian food industry.
The report primarily focuses on the following aspects of Operations Management at Haldiram’s:
 Facility location and layout planning
 Inventory Management
 Process Management
 Managing for quality
 Distribution
Various aspects of supply chain management and value chain analysis are identified and analysed
in the report. After the analysis, our team has identified few issues that are still not addressed in
the supply chain management of Haldiram’s. In conclusion, we have proposed the solutions to
those issues.

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Company Background
1937 – One man shop in Bikaner
1983 – 1st shop in Delhi
Early 90s – Split into 3 Units – Kolkata, Nagpur & New Delhi.
1992 – Manufacturing Unit with Retail Outlet
1995 – Restaurant in Delhi
1997 – Production factory for Namkeens
2000 – Entered International Markets
Haldiram’s has been rightly termed as Taste of Tradition. Known for its unbeatable taste in
Mithais and Namkeen segment, Haldiram’s is a household name today, a Food Company
synonymous with taste, hygiene and innovation. It was in year 1937 in Bikaner, when Ganga
Bishen started selling Bhujia sev in Bikaner and it became so popular within city that even tourist
coming to the city prefer to buy it. Then in 1941, the name 'Haldiram's Bhujiawala' was used for
the first time. In 1983 first retail outlet was opened in Delhi. Then after they expanded business
in Kolkata followed by another unit in Nagpur
Haldiram’s has grown both in domestic and international market. Today Haldiram’s is known for
matchless quality, packaging, efficient supply chain management, distribution network and zero
impurity. Company uses best technology for its all manufacturing units and special attention is
given to packaging due to which shelf life of namkeen has been increased to six months. The
Aggarwal family that owned Haldiram’s group always paid attention to need of customers in
order to expand. For this the company offers wide range of variety catering to needs of different
age group.
Haldiram’s product range from namkeen, sweets, sharbat, dairy product, ice cream, snacks, dairy
and bakery products, from this highest contribution comes from namkeen. Company’s Nagpur
unit alone manufactures 51 varieties of namkeen, Delhi 25 and Kolkata 37. Company varied
product tastes according to preference of customers residing in different parts of the country.
Haldiram’s group has well managed distribution network, which has its reach for its products in
country as well as other parts of world. Carrying forward (CFs) agents of company collect goods
from manufacturing unit who pass them to distributors, who in turn send them to retail outlets.
Haldiram’s has entered into e-retailing also, they have tied up with INDIATIMES to sell their
products. This clearly shows that the company that has its roots in traditional India is innovating
with time and this is what a successful company does. Innovation and marketing is a key to
success for Haldiram’s.

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Today, Haldiram’s controls a domestic market share of about 30% in Indian Namkeen sector.
Today Haldiram's is a 4 Million dollar brand that is present across USA, UK, Middle East. Present
in supermarkets the world over e.g., Tesco, Somerfield's, Spinney's and Carrefour. It has become
a way of life for Indians no matter which country they live in.
Vision:
Be the Trend Setter in the field of Healthy and Tasty Eating To Achieve a Sustainable Growth this
will bring about an overall upliftment of the Organization, its People and the Society.
Mission:
Review, Recreate and Rediscover the trend of Healthy Eating and Innovate and Invent fresh new
methods to Nourish and Delight everyone we serve.
Goal:
To provide our customers Perfect Taste and Quality in the Best of Packaging.
Awards & Certifications:
Haldiram’s bagged the prestigious ‘INTERNATIONAL AWARD FOR FOOD & BEVERAGES’ awarded
by Trade Leaders Club in Barcelona, Spain in 1994.
The Group has also to its credit ‘KASHALKAR MEMORAIL AWARD’ presented by All India Food
Preservers Association (Regd.) in 1996 at its Golden Jubilee Celebration for manufacturing the
best quality food products.
APEDA EXPORT AWARD 2001-2002’, awarded by Agricultural & Processed Food Products Export
Development Authority for the outstanding contribution to the promotion of Agricultural &
Processed Food Products during the year 2001-2002.
Certifications : ISO 9002, and HACCP
Haldiram’s Core competencies:
The Core competency of the company lies in
 Food Taste – Traditional Indian authentic taste.
 Food Quality – Best quality raw material and latest industry practices to create the taste
while maintaining hygiene and contemporary packaging with increased shelf life & freshness.
 Innovative – Branding of “Namkeens”, adaptability to ever changing trends, inventing and
re-inventing themselves to maintain a competitive edge.

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Plant Location
The plant location for any business needs to be carefully chosen as it is detrimental in
determining the ultimate cost of the good manufactured. The suitability of location for a
company can be judged from the 7 key factors:
We have chosen Haldiram’s Nagpur plant for our research.
Haldiram’s Nagpur plant is situated in ‘Small factory area’ in the village Bhandara, nearby Nagpur.
The ‘Small factory area’ consists mainly of Industries and warehouses. The advantages
/disadvantages of the location based on the seven key factors are analysed as follows:
Land: Small factory area has special benefits from the state govt. The factory avails lower tax
rates, continuous electricity and water supply.
Labour: Being situated in a village outside Nagpur, Haldiram’s can avail labour at lower wages.
Since Haldiram’s is not into labour intensive industry, the requirement of skilled labour is not
high which in turn helps in reducing the cost of manufacturing.
Capital: Nagpur is a fast growing city and the second capital of Maharashtra. It has presence of
various capital sources like banks and NBFC’s and hence obtaining of capital for further business
expansion is not a problem for Haldiram’s.
Sources: The factory is located close to the sources which is an advantage to Haldiram’s. The
Small factory area, houses many warehouses and stockists of grains, pulses and other raw
materials required for the manufacture of Namkeens and other products. The close proximity of
the suppliers reduces the inbound logistics cost for the company. The close proximity of sources
also increases the utility of perishable goods required for the company for its various processes.
Production: Since the production process of Haldiram’s is a weight normal process where most
of the weight of the raw materials is transferred into the end product, a separate location for
special logistics needs is not required.
Land Labour Capital Sources
Production Market Logistics

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Market: The products of Haldiram’s are non-perishable goods have a shelf life of around 6
months due to the best packaging standards. Hence, the location of plant far from markets is not
a disadvantage for the company.
Logistics: The primary distribution network of Haldiram’s comprises of carry forward agents who
carry the goods from the factory to the distributors all over the country. Nagpur has good
connectivity via rail, road and air to the whole country and the location gives an added advantage
of good logistics combined with all of the above factors.
Thus, we find that the Nagpur factory of Haldiram’s is situated at a place best suited for
its mode of operation and the business it is into.

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Inventory management
At Haldiram’s, suppliers play a key role in inventory management.
The perishable products, like groundnuts and other condiments are stored in cold storage. This
cold storage are a part of the supplier’s infrastructure.
Contract with supplier is made on basis of his ability to store perishable products and the logistics
efficiency.
Since there is a low uncertainty in demand, the supply chain can be termed as ‘risk hedging’. This
is because all production is made, against advance payments only.
For raw material, Haldiram’s stores inventory worth 36 hours only in its premises. For packaging
material such as packet film, the inventory stored is worth 2-3 days of production.
The carton or seconday packaging material is stocked based on a 15 days of production.
Layout
Generic layout at any food processing plant is
At Haldiram’s, the raw material is unloaded/stored at the incoming material area.
From there it is taken to the processing plant.
Once the food is processed, it moves forward to packing. After packing the material moves onto
the secondary packaging stage, where it is put into cartons to be moved onto the dispatch area.
The logistic partner picks up the product for delivery from the dispatch area.

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A detailed view of the process is given below.
Incoming
Material
Processing
Packing
Secondary
Packing
Dispatch

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Process design
The machines at Haldiram’s are fully automated, 99% imported machines.
All products except ‘Bikaneri Bhujia’ is made on these state of the art machines using the
contemporary technology, unavailable to many, in India.
These machines operate at 100% utilization level.
The above process is used for products such as ‘Aloo Bhujia’ and ‘Punjabi Tadka’.
 The raw material (potato), is moved from the incoming material area and is washed
 After an extensive washing process, the potatoes are moved onto the peeling station
 After the peeling process, the potatoes are boiled.
 The potatoes are mashed, once the boiling process is complete. Since this is an automated
machine, there is no lag time to allow the potato to cool down.
 After mashing, the mashed potatoes are mixed with gram flour (Besan) and spices.
 These spices are proprietary and vary according to the product being made.
 After the dough is ready and set, it is extruded
 The extruded dough is sent to the frying section.
 The fried dough is cut in a machine called as breaker, which is a roller cutter
 Once the product is ready it is coating with seasonings
 The cooled product is then sent to the primary packing area. The packaging process
involves inclusion of nitrogen gas in the packet.
 The packed material is sent to the secondary packaging area where it is put in the cartons
Washing
Peeling
Boiling Mashing
Mix
Dough
Extrution Frying
Breaking
Seasoning
Coating
Packaging
Secondary
packaging
Dispatch

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 The cartons are then dispatched to the delivery area
 The logistic partner takes over the product from the dispatch area
For the most widely sold product ‘Moong Dal’, there is a different process
This product is made utilizing a second workstation and layout.
 The pulse is sorted as per size and only the size that meets criteria is moved forward for
processing. The initial sorting is also done at the supplier level.
 The pulses move onto the washing section, where the impurities and dirt etc. are
removed.
 The soaking process follows the washing where the time is nearly 2-4 hours
 The moisture is removed in the next step
 After drying, the product is sent to the frying process
 After the completion of the frying process, salt and spices coating is done.
 After cooling, the packaging process follows.
Bikaneri Bhujia is still made manually.
Sorting
Washing
Soaking
Water
Removal
Frying
Salt and
Spices
Packaging
Sec.
Packaging
Dispatch

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Quality Process
At Haldiram’s, it is very imperative that the standards are met in each and every pack.
Incoming raw material is tested
 For moisture
 For Size
 For foreign material
In the main process, frying time and temperature are key factors which are auto controlled
Final products are checked for
 Acidity
 Salt
 Moisture
 Oil percentage
Since it is a fried product, no microbiology testing is done.

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Distribution
The distribution network of Haldiram’s Nagpur is primarily divided into four zones which it caters
to. The basic organisational structure of the sales task force is given below.
The National Manager is responsible for the overall sales of Haldiram’s Nagpur in East, West,
Central and south zones. Under the National Manager, Each zone has its own set of managers
and sales task force.
The sales teams of the various zones predicts the monthly and seasonal expected sales in the
area based upon the feedback from the various retailers. Accordingly, the production of the
demanded goods is increased and kept ready for transportation.
The transportation of the goods from the factory is taken care by around 55 C&F (carry forward)
agents. The C&F agents store the goods into their warehouses from where these goods are taken
by approx. 1050 distributors present all over the country. The distributors then supply these
goods as per demands to the various retail outlets from where the customers finally buy the
goods.
National Sales Manager
Eastern
Region Sales
Manager
Zone Sales
Manager
District sales
manager
Sales
Executives
Southern
Region Sales
Manager
Zone Sales
Manager
District sales
manager
Sales
Executives
Central
Region Sales
Manager
Zone Sales
Manager
District sales
manager
Sales
Executives
Western
Region Sales
Manager
Zone Sales
Manager
District sales
manager
Sales
Executives

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Haldiram’s maintains goodwill with the C&F’s and distributors. Changing itself with time and
adapting to the technological innovations, Haldiram’s also has gone for a tie-up with
www.indiatimes.com with delivery time of 48 hours to one week and value added services
(personal messages).
With its nationwide spread network and a strong sales and distribution team, Haldiram’s is able
to cater to the demands of its customers on time.

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Problem Identification
After analysing the complete operation process of Haldiram’s, the area of concern and potential
risk is the growing number of complaints with respect to packing and taste of the namkeens.
Issues:
1. 1. Unable to cater to customers via online. Currently the company has ties with third
parties to provide online capabilities to its supply chain management.
2. 2. Lack of efficient waste management capabilities in the food processing units of
Haldiram’s.
Solutions:
1. To bring online order processing capabilities, Haldiram’s must implement some
enterprise tool such as SAP, ERP etc.
This will be a great value addition to the processing capabilities of Haldiram’s, following
are some of the benefits
a. Ability to serve large number of customers.
b. Ability to meet fluctuating market demand, for example, huge demand on DIWALI etc.
c. Data analytics capability to identify future trends, forecasts and to plan for events well
in advance.
d. Centralized supply chain management will help in managing exports, offshore
businesses, and franchises.
2. Haldiram’s can collaborate with market leaders in waste management for better disposal
and utilization of the waste generated from its factories. This will help Haldiram’s to
position itself as an environment friendly and socially responsible organization. In today’s
highly sensitive customer environment, such additional benefits are turning out to be
“order winners”. Haldiram’s can achieve environment protection and safety related
certifications and make a positive brand image in the market.
References
www.en.wikipedia.com/haldiram
www.haldiram.com

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