A
business Analysis: "Himshree Foods Pvt Ltd"
Introduction
Himshree Foods Private Limited is known as the first
noodle manufacturing company among the SAARC nations and oldest noodles
manufacturing company in Nepal with its famous brand “Rara”. It was established
in 2039 BS by “Fadindra Man Shrestha” under the chairmanship of Mr. Surya
Bahadur KC named as “Gandaki Noodles Pvt Ltd. Later in 2052 BS it was named as “Everest
Noodles, continuing to it in 2056 it was named as “Himshree Foods Pvt Ltd”. The
company’s manufacturing plant is located in Pokhara Industrial Estate.
Now the company produces noodles in
different flavor with most sophisticated automatic Japanese Machineries. The
plant is furnished with state-of-the-art Japanese machinery. Its product has
market not only in whole over Nepal but mostly to its neighboring countries
India, China and planning to extend market mostly in Bangladesh, Bhutan, Gulf
Countries, USA, Australia, Russia and UK. After winning 1986 International Food
award in Barcelona, Spain the company have proved in both quality and
quantitative food production. Also, all the raw materials necessary for
manufacturing noodles passes through laboratory tests to qualify as production
input Him-Shree follows the International Standard stated in ISO 9001:2000 in
order to produce eco friendly products and to meet its corporate social
responsibilities.
Products
and Services
Himshree Foods Pvt
Limited has offered various ranges of products and services to their customers
and succeeds in providing satisfaction. The company’s products and services is
listed as:
- White Noodles: Rara and Himali.
- Brown Noodles: Aaha, A-one, Sara, Oho, Rupa, Fewa and Majjako.
- Snacks: Hattori.
Technology
Used
Himshree Foods Pvt Ltd
is furnished with state-of-the-art
Japanese machinery in its manufacturing process. Not only this company also
uses Swastik as an accounting tool for accounting purpose, record management,
inventory management, sales-position, and procurement management as well. With
the help of these latest technologies the company is doing well in its
operation with efficiency and attaining broad market share in nation’s noodle
market.
Market
Himshree Foods target
group is ranged from children to all the age group people. It has the huge market
share in nation’s noodle manufacturing business. Solely 50% of the total white
noodles is produced by the company itself and has maintained its monopoly on
it. Not only this for marketing purpose the company has area sales managers,
sales officers, supervisors, dealer in charge who all work in the product
distribution channel. The company has 85 distributors in all over Nepal. For
marketing purpose the company uses Electronic Media: Radio Ads, Paper Ads and
sponsorships in various events like Aaha Gold Cup. Thus the company has
utilized various marketing tactics and made its products distinct among its
competing brands.
Competitors
All the noodle
manufacturing companies are the competitors of Himshree Foods especially
Chaudhary Groups brand: Wai Wai in brown noodles because wai wai is known as
best brown noodle in nation in comparison to other brown noodles. Also the
company has market in neighboring country India and China so it might have
competition to the local noodles as well.
Supply
Chain Management
Supply chain is the
system of organizations, people, activities, information and resources involved
in moving a product or service from supplier to customer. Also Supply chain
management spans the movement and storage of raw materials, work-in-progress,
and finished goods from point of origin to point of consumption. SCM has 3
basic aspects: Input, processing and Output. In context to Himshree foods it
has also those 3 aspects could be described as:
- Inputs: Incorporation of raw-materials (flour and chemicals).
- Processing: Transformation process that converts input into output.
- Output: End products i.e. noodle after processing.
- Input: Flour and chemicals.
- Conveyer: After input is done then it goes to mixture container and reaches to conveyer.
- Mixture: After this all the inputs gets mixed in the mixture.
- Feeder: It is used for discharging the bulk solid materials from hopper.
- Roller: In this step the flat sheet of mixture is rolled and made smooth and flexible.
- Steamer: In steamer the noodle dough is steamed in salt water.
- Cutting/ folding: Once the noodles is steamed cutting and folding is done.
- Frying: In this step frying of the noodles is done.
- Cooling: At this stage the noodles which were fried are cooled for packaging.
- Packaging: Once the noodles are fried they are packed and kept in cartoons for delivery.
Effective
Supply Chain
v Procurement
o
Raw materials ordering i.e. flour from
various parts of nations mostly from: Kathmandu, Birgunj, Butwal, Dang and even
itself in exception.
o
Seasoning : Chicken based soup
ingredients from Singapore.
o
Chemicals: Mostly from India and China.
v Quality
Control
o
Standard lab test of raw-materials
before production.
o
Quality check of seasoning and
chemicals.
o
Taste, color, moisture, ingredients and
appearance check.
o
Final check of the output: packaging.
v Distribution
Channel process
o
Production.
o
Distributor.
o
Wholesaler.
o
Retailer.
o
Consumer.
v Pricing
Decision
o
Production cost.
o
Administrative cost.
o
Cost of materials.
o
Marketing expensed.
o
Other costs.
SWOT
Analysis
Strengths
Generally Strengths
represents the company’s overall strong aspects and the competitive advantage
over other company. Also it resembles its monopoly power over other competitors
in products, quality, services, market, consumers etc. Himshree food also has
certain strengths as:
- Unique and quality product: white noodles.
- Good relations with its suppliers, creditors and customers.
- Good Management.
- Variety of Products.
- Sufficient Resources and has efficient technologies (5 liner noodle processing machine).
- Larger and stronger market share
Weakness
- Labor Management problem.
- Weak advertisement i.e. no websites.
- Limited work hours: only 12 hrs a day.
- Less Effective distribution channel.
- Lack of automatic machine: Machines are operated manually.
- Strong labor problems.
- Lack of communication among the organizational members.
Opportunities
- Advancement in technology could be done.
- Himshree has greater opportunities in broadening its market area inside and outside nations.
- Low cost strategies could be implemented.
- Increasing the demand by increasing the working hours.
- Product line extension.
- More skilled manpower, ideas, knowledge and innovation.
- Conducting research and development.
Threats
- Rising competitors like Asian Thai Foods, Pokhara Noodles, Chaudhary groups, etc.
- Threats from new entrants: wide knowledge, entrepreneur.
- Political Instability of our country.
- Bargaining power of customers (leads to lowering price of product which causes low profit).
- Government Policies and tax rate.
- Lack of manpower that are willing to work due to abroad movement for jobs.
Conclusion
and Recommendation
Being a noodles manufacturing
company mainly Himshree Foods need to focus on its unique products and also try
to maintain consistency and quality. Manufacturing company like Himshree foods
requires adapting to latest technology not only for producing only products but
also for its management purposes. The company needs to extend its current
product line and also working hours from which it can gain greater market share
and can maintain monopoly in noodle market. It should embrace the use of
technology in production as well as in supply chain management. This will
significantly reduce their cost and help in their low cost strategy. Not only
this company also need to improve its advertising and marketing strategies,
attract customers and maintain satisfaction among them. Finally, Himshree needs
to give most priority on who they are what they are producing and for whom they
are producing, if these aspects are followed then it will enhance the company’s
capabilities and flourish the business.
