Euro foods

EURO FRESH FOODS PRIVATE LTD.

AURO UNIVERSITY OF HOSPITALITYAND MANAGEMENT

MANAGEMENT ACCOUNTINGMBA

BLOCK-2 SEMESTER-1

INDIVIDUAL REPORT

MADE BY: AANCHAL KABRA(MBA 14-16)

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SUBMITTED TO: Mrs. MEGHNA DANGI

ACKNOWLEDGEMENT

On the occasion of completion andsubmission of report, I would like toexpress my deep sense of gratefulnessto my project guide Mrs. MEGHNA DANGIfor her useful tips and guidance.Without her constant encouragement, itwas important to reach up to thisstage.

I would also like to use thisopportunity to thank all my mates whodirectly or indirectly helped me withtheir valuable opinions andsuggestions in this project.

- AANCHAL KABRA

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TABLE OF CONTENTS

TOPIC PAGE NO.

INTRODUCTION 4

COMPANY PROFILE 5-6

VISION & MISSION 6-7

PRODUCT LINE 7-13

CUSTOMERS AND COMPETITORS 14

LIST OF COSTS 15-20

BREAK EVEN 21

BUDGETING TECHNIQUES 21-22

COST CONTROL TECHNIQUES

PURCHASE DEPARTMENT PRODUCTION DEPARTMENT

23-24

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CONCLUSION 24

REFERENCES 25

INTRODUCTION

It was the brainchild of Late Shri Jivanbhai

Sansapara who was the head Sahil Star Group, a

company that deals in manufacturing, exporting

and importing diamonds, that helped create a

brand of FMCG snacks and juices named Euro India

Fresh Food Pvt Ltd. His kin, Mr. Manhar J.

Sanspara, Mr. Dinesh J. Sanspara, Mr. Jayanti J.

Sanspara and Mr. Mahesh V. Mavani, now looks

after the company.

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The founders of a Euro India Fresh Foods Pvt. Ltd

also are into the business of property within the

state of Gujarat, India.

Euro India Fresh Foods Pvt. Ltd is Associate in

Nursing Indian primarily based dish manufacturer.

The factory measure tailor created to suit the

Indian roof of the mouth. Our product ranges from

a good form of seasoned chips to beverages. A

number of our merchandise embody, Euro Chips,

Euro Namkeens, Euro Getmore, Euro Wheels,

packaged drinking water Euro Spa, Euro’s mango

drink Fresho and lemon primarily based drink Euro

Lemoni.

Here at Euro, we tend to make sure that we tend

to build snack foods as healthy as potential.

Refer to the ‘Health Funda’ page to see how we

are a healthier option as compared to the rest.

Euro India Fresh Foods Pvt Ltd. is an ISO

22000:2005 certified organization that is fleetly

capturing the market. We tend to hope to become a

number one FMCG Company with the snacks, drinking

water & fruit juices that we tend to manufacture.

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We have also collaborated with Walt Disney and

brought out snack foods, which will make the

youngsters go crazy. They represent Euro Ringoli,

Euro Bubbles and Euro Funfill. What’s additional

is, every of those packets have slightly surprise

within the sort of engaging collectibles which is

able to undoubtedly attractiveness to youngsters.

COMPANY PROFILE

Mr. Manhar J. Sanspara CMD (Chairman and

Managing Director)

Mr. Dinesh J. Sanspara MD (Managing Director)

Mr. Jayanti Sanspara (Executive Director)

Mr. Mahesh Mavani (Director)

Dr. Mukesh Navadiya (CEO)

Mr. Manhar J. Sanspara CMD (Chairman and Managing

Director)

Founder of Sahil Star Group and Chief Managing

Directors in Euro India Fresh Food Pvt. Ltd. has

gained 25 years of experience in diamond

industry. At present he is involved in strategic

business decisions pertaining to his FMCG Company

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and also looks after the overall management of

the group along with manufacturing of diamonds.

He is also committed to social responsibilities

by way of various Medical. Educational & many

other Trusts

Mr. Dineshbhai Jivanbhai Sanspara (MD)

Young, energetic and talented personnel

designated as both partner of Sahil Star Group

and Managing Director in Euro India Fresh Food

Pvt. Ltd. He has also gained experience of more

than 20 years in diamond industry and handles

overseas buyers of diamonds and finance

department in the group. He aims at making Euro

India Fresh Food Pvt. Ltd. top FMCG player.

Mr. Jayantibhai Sanspara (Executive Director)

He has been controlling and executing his role as

the Executive Director of Euro India Foods from

Belgium Known for his enthusiastic and energetic

approach towards work also has his control over

the proceedings of JR DIAM. He, with his

qualified & capable expertise has taken the

charge of both the ventures flawlessly.

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Mr. Mahesh Vallabhai Mavani (Director)

He is designated as both partner of Sahil Star

Group and Director at Euro India Fresh Food Pvt.

Ltd. Having attained 15 years’ experience in

Diamond Industry he is all set to use his

expertise in making Euro India Fresh Food Pvt. a

leading FMCG company.

Dr. Mukesh Navadiya (CEO)

Having passed his BAMS from Gujarat Ayurveda

University, Jamnagar he is also practicing

doctorate and is now associated with Euro India

Fresh Food Pvt. Ltd. as its Chief Executive

Officer. He takes care of all the workings of the

company and implementation of the project.

VISION AND MISSION

Vision:

• To be one in all the leading brands in FMCG

business

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• To be the foremost innovative company within

the business

• To create hunger satisfying product for each

category of patrons

• To be graded highest in style of taste and

varieties

Mission:

• To create product that deliver worth for cash

• To keep it up delivering, mouth feeding

healthy snacks and beverages for years to return

• To grant premium quality product and receive

client satisfaction

PRODUCTS LINE

Euro’s Chips are fresh and crisp snack foods.

Choosing similar sized potatoes of finest quality

that are first taken for wash and later for

producing method creates them. Throughout the

producing method, chips are untouched because it

is formed exploitation to trendy producing

techniques. Even the packaging method is totally

machine-controlled and every packet is gas

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stuffed to make sure that the chips are fresh and

crisp for extended amount of time. The

variability of flavors factory-made by us focuses

to satisfy Indian mouth. Have a glance at the

range of potato chips that we provide Euro Fresh

Foods Pvt Ltd.

Chilli Achar Classic Salted

Cream Onion

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Masti Masala Mint Lemon Pepper Attack

Tingling Tomato

EURO NAMKEEN

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Have some guests or simply need to select onething, to munch on? Need to serve some munchieswith drinks? Nothing higher that serves youhigher than some few fast bites of Euro Namkeens.From one thing that's spicy to one thing sweet,that leaves a long-lasting style. The varietiespromise everything you wish to thrill yourself oryour guests. We have a tendency to serve in avery wide selection of seasoned Namkeensincluding: Chana dal, Aloo Cheese Sev, BikaneriBhujia, Tasty Peanuts, Shahi Mixture, Moong Dal,Navratan Mixture, Khatta Meetha, Aloo Tomato Sev,Aloo Pudina Sev, and Ratlami Sev.

Chana Dal Aloo Cheese Sev

Bikaneri Bhujia

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Tasty Peanuts Shahi Mixture Moong

Dal

Navrati Mixture Khatta Meetha

Aloo Sev

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Aloo Pudina Sev Ratlami Sev

EURO FARALI

Euro’s Farali is a category that has been

introduced notably for those Indians that observe

religious fasts or for those that would really

like to own some diet food. These products are

made with a tinge of ‘Sindhav Salt’ added to

them, so creating them appropriate for fast

users. The array of Farali product includes,

Potato Wafers, Kela Wafers, Chiwda Tikha and

Chiwda Mitha.

Chiwda Meetha Potato Wafers Kela Wafers

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Chiwda Tikha

EURO DISNEY

Euro collaborated with Walt Disney to pamper the

youngsters with pleasant-tasting snacks and

exciting goodies. Funfill caters to the style

buds of youngsters with its creamy fillings.

These are corn stuffed snack with cream filling

that are healthy for kids as they're baked and

not deep-fried. Funfill may be a distinctive

delicacy that has been introduced within the

family of snack foods. Every packet contains a

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very little collectible within which will cheer

the youngsters up and build them wish additional.

Thus don't miss the possibility to check your

child smiling once he or she opens this packet.

We’ve four flavors which will build teens go gaga

over it. They are: Chocolate, Strawberry,

Vanilla, and Black-Current.

Black Current Funfill Chocolate

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Funfill Strawberry Funfill Vanilla

EURO RINGOLI

Ringoli from Euro may be a totally differentsoundly snack, a snack with a hole. Each bite canprovide you with a crisp and fresh expertiseaccentuated with its distinctive flavor. Weprovide these rings in 3 flavors: Cheese Rings,Masala Ring, and Tomato Rings.

Euro’s Bubbles is another product that we've gotcreated for the children. Its inventive 3Dpackaging attracts the kids even other. They’relightweight, flavored balls that are tough toprevent munching once you begin. Its fresh soundechoes in your ears and lures you to induce someextra. Therefore waste no time and juggle some inyour hand and a few on your tongue. These balls

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are offered in 3 flavors, namely: Cheese balls,Masala balls, and Tomato balls.

Tomato Rings Cheese Rings Masala

Rings

Bubble Cheese Masala Ball

Tomato Balls

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EXTRUDED SNACKS

Euro’s Getmore is tastier, crispier and yummier

of all the extruded snacks on the market. Each

crisp firm bite can surprise you with its

extraordinary style. All these crisp chips are

factory-made with utmost care and beneath very

healthful conditions. These flavours are

extremely different and can create it tough for

you to resist. On every occasion you finish a

packet, you'd desire running to the shop to

‘GETMORE.’ The flavors that we provide in Euro

Getmore are: Tingling Tomato, Chatpata Masala,

and Green Chutney.

Green Chatni Tingling Tomato

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NEW UPCOMING TRY ANGLES

EURO Magic Fun-Fill is a distinctive delicacyintroduced for the very first time within thefamily of Snacks Food. This wonderful snack isone in every of its types. The crème is extractedfrom choicest of mangoes & strawberries tocontrol a really original and current style. Eachbite of it'll take you to the tour of creamydelight.

LIST OF CUSTOMERS

Big Bazaar

Dhiraj Sons

General & Provisional Stores

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LIST OF COMPETITORS

Euro Foods

Uncle Chips

Parle Agro

Balaji

Other local brands

LIST OF COSTS WITH CLASSIFICATION

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Cost Classification

Manufacturing Costs

Non- Manufacturing

Costs

Direct Labor Manufacturi

ng OverheadSelling Costs

Administrative Costs

Fixed Manufacturing Overhead

Variable Manufacturing Overhead

Direct Materi

al


MANUFACTURING COSTS

Manufacturing cost is that expenditure incurred

in polishing off the assembly processes of a

company. The producing cost includes direct

prices, for example, labor, materials, and

expenses, and indirect prices, for example,

subcontracting and overheads.

The costs identified as manufacturing costs in

the production of Euro Foods are as follows:

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1.Direct Materials

The materials that go into final product are

called raw materials

Potato

Oil

Seasoning (flavour)

Film (packet)

Carton

2.Direct Labour

The term direct labor is reserved for those labor

costs that can be essentially traced to

individual units of products. Direct labor is

sometime called touch labor, since direct labor

workers typically touch the product while it is

being made. Direct labour includes worker working

in

Input Department

Peeling department

Washing department

Slicing department

Frying department

Seasoning department

Packaging Department

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3.Manufacturing Overheads

Manufacturing overhead, the third element of

manufacturing cost, includes all costs of

manufacturing except direct material and direct

labor.

Variable manufacturing overheads includes:

Electricity

Gas (gas generator)

Nitrogen (N2) flush

Utility expenses

Repairing costs

Maintenance costs

Fixed manufacturing overheads includes:

Rental costs (if gas generator is hired on

rent)

Transportation costs

Meals

Depreciation

Indirect labour includes:

Labour used in service department

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Security guards

Labour in engineering department

Warehousing labour

Labour in quality department

Overtime

Indirect material includes:

Food stickers

NON-MANUFACTURING COSTS

Non-manufacturing costs are those costs that are

not incurred to manufacture a product.

Examples of such costs are salary of sales person

and advertising expenses. Generally non-

manufacturing costs are further classified into

two categories.

1.Marketing and Selling Costs

2. Administrative Costs

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1. Marketing & Selling Costs :

Marketing or selling costs include all costs

necessary to secure customer orders and get the

finished product into the hands of the customers.

These costs are often called order getting or

order filling costs. These costs include;

Commissions

Placement costs

Transportation costs (per unit of product is

charged)

2. Administrative costs

Administrative costs include all executive,

organizational, and clerical costs associated

with general management of an organization rather

than with manufacturing, marketing, or selling.

Examples of administrative costs include

executive compensation, general accounting,

secretarial, public relations, and similar costs

involved in the overall, general administration

of the organization as a whole. For PepsiCo,

Snacks department following costs are identified

as its administrative costs;

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Salaries

Office expenditure including furniture and

stationery costs

Depreciation costs (offices)

COST CLASSIFICATION ON THE BASIS OF COST

BEHAVIOUR

Apart from classifying costs as manufacturing and

non-manufacturing costs, costs are also

classified on the basis of their behaviour. These

are the

Variable costs

Fixed costs

Other costs

1. Variable Costs:

Variable cost may be a cost that varies, in

total, in direct proportion to changes within the

level of activity. Just in case of the producing

of Euro Foods, varieties of variable costs are

incurred. The primary is electricity charge. The

electricity is generated from gas generators so

the gas will be thought-about as a variable cost.

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Second is the cost of maintenance of the

machinery and also the entire factory.

2. Fixed Costs:

Fixed Cost may be a cost that continues to be

constant, in total, no matter changes within the

level of activity inside the relevant vary. In

case of the manufacturing of Euro Foods the fixed

costs incurred are firstly the depreciation of

the fixed assets being used. Second is the cost

of the permanent employees. The transportation

cost i.e. cost of transporting potatoes from the

farm to plant then from the plant to warehouse is

additionally thought-about as a fixed cost. The

rental cost e.g. of the generators that are used

to generate electricity is additionally fixed

costs.

3. Other Costs:

Other costs include the fringe benefits and the

extra benefits given to the employees. Fringe

benefits are perks offered to employees in order

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to keep them motivated and for the purpose of

retaining them.

Fringe benefits given to labour include

Meal

Transportation

Overtime

Extra benefits to higher executives includes

(varies with status)

Pay roll

Provident fund

Medical free facility

Transport

Fuel expense

Cell phones (monthly bill of cell paid)

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BREAK EVEN

Fixed Cost = Rs. 10, 00, 00, 000

Desire Profit = 12.5%

Sales to Earn Desired Profit = 85, 00, 00, 000

Sales to Earn Desired Profit = (Fixed Cost +

Desire Profit) / P.V. Ratio

(P.V. Ratio = 24%)

BEP = Fixer Cost / P.V. ratio

= 10, 00, 00, 000 / 0.24

= Rs. 41, 66, 00, 000

BUDGETING TECHNIQUES AT EURO FOODS

A budget is a plan expressed in rupee amounts

that acts as a road map to carry out an

organization’s objectives, strategies and

assumptions.

A company may need a master budget or profit plan

for the coming year. The master budget can

represent a projected financial statement and

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record. Inside the master budget is going to be

in operation budgets like a sales budget,

production budget, selling budget, administrative

budget, and budgets for departments. Additionally

there'll be a money budget and a capital

expenditures budget.

It is a common practice that the budgets ready

for future accounting year are going to be

elaborated by quarter or by month. It is also

typical that the annual budget will not be

changed once the actual year begins. For

managers, a budget may be a guide that it not so

rigid that it prevents timely action once

required. In rare circumstances the annual budget

may be revised, however only if the business

atmosphere has radically modified.

OPERATING BUDGET APPROACH

The company uses the operating budget approach in

which the budget is made for the whole year i.e.

12 months from January to December which is

reviewed almost every month but it is not the

rolling one to check if there are some variances

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there are afterwards corrected according to the

current situation.

PARTICIPATIVE BUDGETING APPROACH

The company uses self-imposed budgeting or

participative budgeting approach during which

they raise all the managers from completely

different departments to relinquish their

necessities and portion prices to their

necessities then these necessities are overviewed

by administration for budgeting. as an example,

plant manager are consulted for all the overheads

as a result of later it becomes extremely

troublesome to knock down the complete method.

BUDGETING COMMITTEE

Budgeting committee is divided into

Control committee

Planning committee

COST CONTROL TECHNIQUES

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1.PURCHASE DEPARTMENT

a)They buy potatoes in bulk, once in a

year when prices are low, thereby

reducing the cost.

b)Most of the machinery (80%) has been

purchased that have been manufactured in

India and only 20% of it has been bought

from China.

c)They also resort to bulk buying

techniques for all raw materials that

they use in the manufacturing process.

d)They manufacture the pet bottles in-

house (bottles used in juice bottles),

thus are able to cut back on their

purchase expenses.

e)One of the techniques used by the

company to reduce its costs includes

“Opportunity Buying”, i.e. they buy in

bulk when the market prices of the raw

materials that they require are the

lowest and maintain a huge stock of the

items.

2.PRODUCTION DEPARTMENT

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a)The company has substituted lower cost

material wherever possible in their

production line so as to bring down the

overall cost of production of potato

chips, without compromising on the

quality.

b)Euro Foods Ltd. has been able to reduce

their overall wastage to a great extent

which has helped them to cut back on

their expenses.

c)The company makes optimum utilization of

its labor force by offering them on the

job training, this enhancing their

efficiency. This helps the company to

operate with bare minimum workers, thus

avoiding the cost of idle labor.

d)The company has employed the latest and

most updated machinery in its production

line, hence leveraging upon the economies

of scale reducing the cost.

e)The company confirms regular maintenance

of all machinery, thereby preventing any

breakdowns and ensuring smooth

functioning of the entire process. An

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uninterrupted production line is thus

able to minimize the overall cost

structure.

CONCLUSION:

Euro India Fresh Foods Pvt. Ltd. could also be a new

player in city, however it's growing in leaps and

bound. Started in 2011, the company has returned

a complete manner since then. Nowadays the

company is acknowledging for it’s in depth line

of products and also the quality that it offers.

The company offers highest quality products at

the lowest market rate, owing to its extremely

capital-intensive production method that is

provided with the progressive machinery that

ensures a sleek functioning of the complete

operation. The price cutting techniques adopted

by the company have found out well thus far,

facultative it to supply top quality products at

low costs. The company has major growth plans

within the close to future and aspires to become

a national brand among a decade. Considering

this scale of operations, if the corporate

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continues on an equivalent path, it's an awfully

bright predictable future ahead.

REFERNCES:

Euro India Fresh Foods Pvt. Ltd.. 2014. Euro India Fresh Foods Pvt. Ltd.. [ONLINE] Available at: http://euroindiafoods.com/. [Accessed 27 November 2014].

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http://euroindiafoods.com/


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