However, in the heavy competitive environment he could not compete on costs and inhe set up a candy-making unit at Kanpur, the first in UP.
APL was a leading national player in the confectionery industry. It had desired to expand its supply to the market by subcontracting orders to other manufacturers. However, it wanted to retain full control over the quality and production processes of biscuits produced for them.
It had promised the sub-contractors that it would compensate them adequately in terms of volume of business and conversion charges. Earlier, he was a worker in a candy unit in Jaipur. He started his own business with the dealership of candies produced by others. With the experience gained, he set up a production unit in Jaipur in Thirty units were set up in the unorganized sector in Rajasthan to sell a variety of candies between and As competition increased the net profit margins came down.
KCPL could not compete on costs as its costs were higher than those of the other manufacturers. It could not charge a higher price as its candies were not considered by the market to be different from others.
Mohan Kumar faced a financial crisis. He decided to shift the production to another state and reduce costs. Inhe 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.
By he had emerged as a leader in candy business his region.
He decided to invest his surplus cash to diversify into making glucose biscuits and selling them under the same brand. In there were two large national and six regional manufacturers.
The demand for buscuits was growing at more than 15 per cent per annum. The net profit margin on the biscuit business at 25 per cent was attractive.
The process of production was simple and the equipment needed for production were available indigenously. Sugar was the common raw material. However, he had to arrange for regular supply of other raw materials like maida refined wheat flour and vanaspathi vegetable oil.
The names of places, products and people are disguised. The case writers express their gratitude to the members of the family for their co-operation in writing this case. Cases of the Indian Institute of Management, Ahmedabad are prepared as a basis for class discussion.
They are not designed to present illustrations of either correct or incorrect handling of administrative problems. He rented depots in key towns for stocking the biscuits and continued to advertise the brand in vernacular newspapers and retail shops.DECISION REPORT.
FOR Kanpur Confectioneries Pvt. Ltd. (KCPL) Jaykishan Joshi (24) Sem 1 Batch (Group 1) Submitted by: Kanpur Confectioneries Pvt. Ltd. This case describes the experience of Kanpur Confectioneries Private Limited (KCPL), a family managed company, in being a contract manufacturer for A-One Confectioneries Private Limited.
Indian Institute of Management Ahmedabad IIMA/BP(A) Kanpur Confectioneries Private Limited (A) On September 10, , Mr. Alok Kumar Gupta, 47, Chairman and Managing Director of Kanpur Confectioneries Private Limited (KCPL), was in a meeting with his .
Kanpur Confectioneries Private Limited On September 10, Mr. Alok Kumar Gupta, 47, Chairman and Managing Director of Kanpur Confectioneries Private Limited (KCPL), was in a meeting with his brothers, Vivek, 42, and Sanjay, 33, to decide their response to the proposal of A-One that KCPL might consider becoming a contract manufacturer to A-One Confectioneries Private Limited (ACPL).
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Kanpur Confectioneries Private Limited (A) Authors: Dixit, M R; Bharat Footwear Limited Discount Coupons. Authors: Shah, Bhavin;. Step 2-Reading the HBR Kanpur Confectioneries Private Limited (B) case study After reading the guidelines, students need data on which they can apply the guidelines.
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