1. Department of Business Administration A STUDY OF (As a term-paper of Business Policy & Strategic Management) By Abhishek Nigam Roll no 2 MBA (EB)

2. Agro Tech Foods Ltd (ATFL) is a public limited company engaged in the business of marketing food and food ingredients to consumers and institutional customers. To become the Best Performing Most Respected Foods Company in India Nourishing families… Enriching life

3. History of Company In 1997, CAG Tech (Mauritius), a joint venture between ConAgra Foods and Tiger Brands, South Africa, acquired a 51.3 per cent stake in ITC Agro- Tech, which was renamed as Agro Tech Foods Limited (ATFL) in July 2000. Now Agro tech food is 100% susidary of cornagra food ltd. The company has a wide distribution network and its products are available at over 150,000 outlets across India. Agro Tech’s core competency is in branded foods and bulk and processed commodities.

4. Food Processing Industry in India India is one of the key food producers in the world, with the second largest arable land area. It is the largest producer of milk, pulses, sugarcane and tea in the world and the second largest producer of wheat, rice, fruits and vegetables. The Indian food industry is estimated to be worth over US$ 200 billion and is expected to grow to US$ 310 billion by 2015. It contributed 6.3 per cent to India’s GDP in 2003 and had a share of 6 per cent in the total industrial production. The industry employs 1.6 million workers directly.

5. Product of Company

6. Value Generation by Company Operational Excellence To minimize costs by reducing overhead, eliminating intermediate production steps, reducing transaction cost and optimizing business processes across functional and organizational boundaries. Customer intimacy To fulfill the requirement of niche market. Product leadership Sundropis one of the top-selling brands in the premium segment of the refined vegetable oil market in India. ATFL has well-known brands like Sundrop, Healthy World, ACT II and Rath as part of its portfolio

7. Backward Integration – Emerging Business Model The generic value chain of the food processing industry from raw materials to retail to the consumer, is shown below. Traditionally, different players across the value chain played the different roles and worked more or less independently. Contract Farming Contract Farming is an agreement between the food processor (contractor), who is typically a large organized player, and the farmer, whereby the farmer is contracted to plant the contractor’s crop on his land. Terminal Markets A Terminal market is a central site, often in a metropolitan area, that serves as an assembly and trading place for agricultural commodities. Here there are different options for disposing off the produce.

8. Value Chain Analysis of agro tech food ltd Food Retailing Ancillaries like Packaging Farm Input Food Processed Aggregator & Logistic

9. SWOT Analysis Strength of organization A dominant player in the edible oils and branded foods sector, in India. Strong affiliation with ConAgra Foods Inc of USA, world’s third largest foods company. Still the largest selling sunflower oil brand holds 15% of branded oil market. Sundrop heart also used the health platform so it associated with heart patients and fulfill niche customer requirement. It has also acquired a fairly strong presence in the mass market for edible oils through its low-priced brand, Crystal

10. Weakness Limited market penetration in edible oil market. Taste of sundrop heart is less tasty. Rural area are not in the approach of company. Limited market penetration in food processing industry. Price of product is slightly high that affect the demand.

11. Opportunity Sharp increase in demand of branded oil. India has a wide-ranging and large raw material base suitable for food processing industries. India has developed advanced technology to support food processing industry. High market awareness in metropolitan city of branded oil . India’s comparatively cheaper workforce can be effectively utilized to setup large low cost production bases for domestic and Export markets. Liberalized overall policy regime. In Five-year tax holiday for new food processing units in fruits and vegetable processing along with other benefits has bolstered the Government’s resolution of encouraging growth in this sector. Rapid urbanization, increases literacy and rising per capita income, have all caused rapid growth and changes in demand patterns. Food processing industry has been given a fillip as the condensed milk, ice cream, preparation of meat, fish and poultry, pectins, pasta and yeast have been fully exempted from excise duties.

12. Threats The threat of low priced competition. Winner, Fortune Nature ,Fresh ,Saffola are big competitor in edible oil. A large number of domestic as well as multi-national players. Highly competitive industry.

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