Indian Spices

SUMMER TRAINING PROJECT REPORT ON "A Comprehensive Understanding of the Indian Spices Market in the Consumer space." At

Submitted for the Partial fulfilment Of Master of International Business (MIB) Submitted by: IFRAH KHAN 12-MIB-0022 08-4693

Under The Supervision Of Mr. Amit Gupta National Manager-Customer Marketing

CENTRE FOR MANAGEMENT STUDIES JAMIA MILLIA ISLAMIA New Delhi-110025 1|Page

DECLARATION I, IFRAH KHAN, a bonafide student of MIB (Full Time) Programme at the Centre for Management Studies, Jamia Millia Islamia, New Delhi, hereby declare that I have undergone the Summer Training at CARGILL INDIA PRIVATE LIMITED, GURGAON, INDIA under the supervision of Mr. Amit Gupta on "A comprehensive understanding of the Indian Spices Market in the consumer space".

I also declare that the present project report is based on the above summer training and is my original work. The content of this project report has not been submitted to any other University or Institute either in part or in full for the award of any degree, diploma or fellowship.

Further, I assign the right to the University, subject to the permission from the organization concerned, use the information and contents of this project to develop cases, case lets, case leads, and papers for publication and/or for use in teaching.

IFRAH KHAN 12-MIB-22

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ACKNOWLEDGEMENT I am heartily thankful to my supervisor Mr. Amit Gupta, National Manager (Customer Marketing), whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the project .It is his support and guidance due to which I remain able to come out with this project report. I owe the highest sense of appreciation for the talented, cooperating and hardworking team of CARGILL especially Mr. Aseem Soni (Director- Consumer Sales) and numerous other officials including Mr. Hemant Vagare, HR- Cargill for cooperating during the Internship and for providing me the most valuable comments and suggestions without which this report might not have been complete. I also wish to express my gratitude to the management of CARGILL INDIA PRIVATE LIMITED, who rendered their help during the period of my project work. Last but not least I wish to avail myself of this opportunity, express a sense of gratitude and love to my friends and my beloved parents, specially my mother for their immense support, strength, their faith in me and for everything.

IFRAH KHAN

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TABLE OF CONTENTS

SECTION I - COMPANY PROFILE

PAGE NO.

1.1 HISTORY

5

1.2 VISION AND MISSION

7

1.3 OBJECTIVES

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1.4 MAIN ACTIVITES

8

1.5 FINANCIAL INSIGHTS

20

SECTION II – REPORT ON WORK EXPERIENCE AND TASK ACCOMPLISHMENT A) DESK / OFFICE FIELD BASED TRAINING 1.6 DESCRIPTION OF THE ASSIGNED TASK AND RESPONSBILITIES 1.7 NATURE OF WORK 1.8 A BRIEF INSIGHTS- THE SPICES INDUSTRY IN INDIA

21

B) SURVEY/ RESEARCH/ FIELDWORK BASED TRAINING 1.9 RESEARCH OBJECTIVES

43

2.0 RESEARCH METHODOLOGY

43

2.1 ANALYSIS AND INTERPRETATION OF DATA

44

2.2 FINDINGS AND CONCLUSION

58-59

SECTION III 2.3 QUESTIONNAIRE

60

2.4 BIBLIOGRAPHY

64

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CARGILL HISTORY Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, our privately held company employs 142,000 people in 65 countries. We help customers succeed through collaboration and innovation, and are committed to sharing our global knowledge and experience to help meet economic, environmental and social challenges. Cargill collaborate with farmers, food makers, scientists, government, academia, communities and nongovernmental organizations, among others, to create better products and services, streamline supply chains, save energy, reduce costs and ensure food security by connecting places of surplus to places of deficit. We give back to communities where we conduct business through continuous efforts to improve nutrition, health, education and conservation of natural resources. Combining global knowledge, vision and insights with our strong understanding of local customers, consumers, challenges and imperatives, we are committed to nourishing ideas and people in India.

A company emerges: 1865–1899

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Cargill begins in Iowa under the leadership of W.W. Cargill Starting at the close of the American Civil War in 1865 with one grain storage warehouse in Conover, Iowa, Will Cargill followed the expansion of the railroad system throughout the newly settled prairie to gather and process grain. Soon, his two brothers, Sam and James, joined his business venture and established the company's headquarters in La Crosse, Wisconsin. As grain and the railroads moved west, Cargill followed with new country elevators, as well as major terminals in the Minnesota towns of Minneapolis, Buffalo and Duluth. Besides the growing number of elevators, the Cargill's were involved in insurance, flour milling, coal, farming, real estate, lumber, and a railroad. The success of the business required reliable financing, innovation in moving and storing grain, and a solid business reputation.

Crisis years: 1900–1924 

John H. MacMillan, Sr., guides the company through a financial challenge In 1910, Cargill confronted perhaps the greatest challenge to its existence. The established grain trader, having grown throughout the new states in America's north central region, had accumulated too much debt. In 1909, Cargill's founder, William Wallace Cargill, died, leaving a small business empire that was overleveraged and had grown too quickly. It was obvious to his son-in-law John MacMillan that the company had to be restructured in order to satisfy the needs of bankers and customers. The question was whether MacMillan could act fast and strategically enough to preserve the core elevator and grain trading business. John MacMillan, Cargill's new leader, took quick action. He negotiated with the banks and convinced them to extend credit and give the company time to meet its debts. He dissolved much of the businesses outside of

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the profitable grain trading, moved the headquarters to Minneapolis and created a plan that would remove the debt burden over time. Also, MacMillan implemented improved accounting procedures to give management a better financial picture of the company. Within six years, the debts were paid off and Cargill was positioned for growth.

International expansion: 1925–1949 

Cargill becomes international, and diversifies outside of the grain trade Still largely a regional grain trader, Cargill grew steadily throughout the 1930s and 40s and established offices in Canada, Holland, and Argentina. The company weathered the financial turmoil of the 1930s, as well as a major legal battle with the Chicago Board of Trade. It introduced new innovations to the industry, including a teletype wire system, a new style of grain terminal (first constructed in Omaha, Nebraska), and the establishment of a grain laboratory. Many of these innovations originated directly from Cargill's new leader, John MacMillan, Jr. By the 1940s, Cargill had diversified into feed, soybean processing, seed and vegetable oil.

A century of innovation and expansion: 1950–1974 

Erwin Kelm becomes the first non-family member president; Cargill celebrates 100 years In the 1950s, Cargill emerged as a major international merchandiser and processor of agricultural and other commodities. Building on strengths, Cargill began global initiatives with grain-and-oilseed exports and the development of a transportation and grain elevator system that enabled it to respond to worldwide demand for basic agricultural products. In 1964, Cargill issued its first formal annual report to stockholders, which reported sales near two billion dollars; over 5,000 employees; expansion of a soybean plant in Spain, two feed mills and a seed plant in Argentina; and the purchase of the Hen Voerders Company to expand Cargill's feed operations throughout Europe. Grain handling and merchandising, soybean processing, flour and corn milling, seed and animal feed production, and salt processing fueled domestic growth and continued to play an active role beyond North America. Symbolically, the following year saw the one-hundredth anniversary of Cargill, and the tenth anniversary of Tradax, its Geneva-based extension.

Extraordinary growth: 1975–1999 

Diversification of businesses and partners lead Cargill out of the twentieth century Under Whitney MacMillan's leadership, Cargill diversified with new operations in beef, pork and poultry processing, steel making, citrus processing, petroleum trading and merchandising, international metals, fibers and tropical commodities origination and trading and fertilizer production. Some of these areas became staples of Cargill's growth; others did not perform as expected and were sold. But Cargill's experience with diversification produced dramatic results. By its 125th anniversary in 1990, Cargill, its subsidiaries and affiliates were found in 57 countries representing nearly 55,000 employees - over ten times the number twenty-five years earlier.

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From commodities to customers: 2000–Present 

Cargill adopts a new brand; shifts focus to partnering with customers By the end of the twentieth century, changes in the food industry, including consolidation and tightening commodity margins, meant Cargill could not prosper if it kept commodity transactions at the center of its business. Cargill began forming closer relationships with customers to provide them with solutions to their pressing business concerns. It recognized that its success was inextricably linked to its customers' success. Cargill's goal of becoming the premier global food and agriculture Company pushed a renewed emphasis within the company on innovation and technology. Cargill moved even further up the value chain. The company evolved from trading soybeans, to processing them into meal and oil, to producing high-value natural vitamin E from a soyabean by product. And it moved from trading corn, to processing corn into ethanol and fructose, to creating a whole new family of renewable products — from plastics to fabric — made from corn.

CARGILL INDIA Cargill's Operations in India started in 1987. We employee more than 2000 employees working in offices and plants across the country and have a network of warehouses and depots.

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We offer a range of products and services: We process, refine and market imported and indigenous vegetable oils - Serving food industry customers with vegetable oils, fats, blends and bakery shortenings - Serving household consumers with a portfolio of fortified and healthy branded edible oils We offer high quality food ingredients to serve food manufacturers and food service industry We originate, process, store, trade and market a wide range of agricultural commodities such as grains, oilseeds, sugar and cotton. We offer premix, compound feed and therapeutic care products to nourish animals We provide risk management and financial solutions We offer freight solutions and serve our industrial customers with energy commodities and metal products.

VISION AND MISSION 

Our purpose is to be global leader in nourishing people.

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Our Mission is to create distinctive value.

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Our Approach is to be trustworthy, creative and enterprising.

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Our performance Measures are engaged employees, satisfied customers, enriched communities and profitable growth.

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FIVE MAJOR BUSINESS SEGMENTS Cargill is an international provider of food, agricultural and risk management products and services. Our businesses are organized around five major segments. 

Agriculture Services,

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Food Ingredients and Applications,

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Origination and Processing,

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Risk Management and Financial, and

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Industrial.

Agriculture Services We provide crop and livestock producers worldwide with customized farm services and products. Explore our businesses within this segment. Cargill Ag Horizons Canada Cargill Ag Horizons U.S. Cargill Feed & Nutrition Cargill Premix & Nutrition Frontier Agriculture Limited

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Food Ingredients & Applications We serve food and beverage manufacturers, foodservice companies and retailers with food and beverage ingredients and new food applications.

Meat, Poultry & Eggs          

Cargill Beef Cargill Case Ready Beef Cargill Food Distribution Cargill Kitchen Solutions Cargill Meats Central America Cargill Meats Europe Cargill Meats Thailand Cargill Pork Cargill Value Added Meats Foodservice Cargill Value Added Meats - Retail

Food Ingredients            

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Cargill Cocoa & Chocolate Brazil Cargill Cocoa & Chocolate Cargill Cocoa & Chocolate North America Cargill Corn Milling North America Cargill Dressing, Sauces & Oils Cargill Health & Nutrtion Cargill Flour Mercosur Cargill Foods Brazil Cargill Foods India Cargill Foods Russia Cargill Foods Turkey Cargill Foods Venezuela

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Cargill Refined Oils Asia Pacific Cargill Refined Oils Europe Cargill Malt Cargill Salt Cargill Specialty Asia Cargill Specialty Seeds & Oils Cargill Starches & Sweeteners China Cargill Starches & Sweeteners Europe Cargill Starches & Sweeteners South America Cargill Starches & Sweeteners Southeast Asia Cargill Texturizing Solutions Cargill Toshoku Horizon Milling

Origination & Processing We connect producers and users of grain, oilseeds and other agricultural commodities through origination,    

processing, marketing and distribution capabilities and services Cargill Cotton Cargill Grain & Oilseed Supply Chain Cargill Sugar Cargill Sugar & Ethanol Brazil

Risk Management & Financial We provide our customers and our own businesses with risk management and financial solutions in a        

number of world markets. Black River Asset Management Cargill Metals Cargill Petrochemicals Cargill Thermal Energy Cargill Transport Fuels Cargill Risk Management Cargill Trade & Structured Finance CarVal Investors Industrial Cargill supplies our customers worldwide with salt and steel products and services. In addition, we are

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constantly developing new industrial applications for agricultural feedstocks. BiOH® Polyols BiOH Fusion® polymers Cargill De-icing Technology Cargill Metals 9|Page

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Cargill Industrial Starches Cargill Ocean Transportation Cargill Industrial Oils & Lubricants Cargill Salt Nature Works LLC North Star Steel (BlueScope)

PRODUCTS AND SERVICES Animal Nutrition & Feed   

Cargill serves the global animal feed and production supply chain by offering: Feed manufacturers reliably sourced inputs, vitamins, minerals, additives, and feed mill management tools. Animal producers the nutrition expertise and feeding solutions to help optimize animal production operations for long-term gains. Feed retailers the on-trend, branded products to drive business results.

Agricultural Commodity Trading & Processing We connect producers and users of grain, oilseeds and other agricultural commodities through origination, processing, marketing and distribution capabilities and services. 

Grains & Oilseeds We operate on an integrated global basis to source, process, transport and distribute grain and oilseeds around the world. The main bulk products we handle are wheat, corn, oilseeds, barley and sorghum, as well as vegetable oils and meals. We have developed significant expertise in handling identity preserved and differentiated products that sustain their distinctiveness in overseas markets. Because we charter more than 150 million metric tons of dry bulk tonnage, we have the logistical flexibility and opportunity to leverage efficiencies in the supply chain. We also work closely with Cargill's finance and risk management businesses to offer a range of financial and hedging products to the products and services offered.

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Biofuels We produce and market biodiesel and ethanol from a range of feed stocks for customers in Europe, Latin America and North America.

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Sugar Cargill Sugar trades raw sugar in bulk, white sugar in bags or containers, and ethanol from offices located in Geneva, Hong Kong, Minneapolis, Minnesota and Amsterdam. We originate sugar from the world‘s leading sugar producing countries, including Brazil, where we co-own and operate two major sugar export terminals, handling bulk and bags. 10 | P a g e

We ship and distribute sugar to customers, industrials, distributors and end-users through offices in Egypt, India, China, Russia, Ukraine and other consuming countries worldwide. 

Cotton Our Cargill Cotton business is present in every cotton producing and consuming region of the world through our merchandising, ginning and warehousing operations. In Africa, our gins give us access to some of the finest hand-picked cottons in the world. In the United States our warehousing capacity exceeds 500,000 bales, assuring our customers throughout the world of efficient and reliable shipments. And, we merchandise more than 5 million bales of cotton annually. Cargill Cotton‘s reputation for quality, reliability, size and leadership is unsurpassed in the world cotton industry.

Energy, Transportation & Metals Cargill ETM is the specialist energy, transportation and metals division of Cargill. By connecting our expertise in these three areas, Cargill ETM brings a unique combination of commercial know-how to the management of supply chains. Headquartered in Geneva, Cargill ETM brings together over 1,000 energy, transportation and metals specialists. We operate regional hubs in the Americas (Minneapolis, Houston, New Jersey, Calgary, Sao Paulo), Asia (Singapore, Shanghai, Beijing, Mumbai) and Africa (Johannesburg), Europe and the MiddleEast (London, Mechelen and Dubai). We manage commodity supply chain prices for more than 30 of Cargill‘s businesses. This experience has allowed us to develop effective, transparent solutions for our external customers too. Our ability to see the bigger picture and anticipate market trends and opportunities will help support your long-term planning. Our network and commodity expertise will help you succeed in complex and volatile markets. And because we apply the highest standards of business conduct even in the world‘s fastest moving and least structured markets, you can be confident about doing business anywhere in the world. Cargill ETM serves thousands of customers across the world.

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EXPERTISE ENERGY

TRANSPORTATION

METALS

We purchase and deliver energy

We operate the world‘s largest

We are positioned in both

sources and related commodities

dry

ferrous and non-ferrous. In

including natural gas, coal,

bulk charter fleet of over 420

ferrous, we supply our

power, refined and non-refined

vessels including capesize,

customers with steel raw

oil products, petrochemicals and

panamax, handy, supramax,

making materials: iron ore,

emissions, in the right quantity

handymax and coasters, which

steel , scrap and finished

and time our customers require.

gives us access to over 6,000

products. In non-ferrous, we

ports. In addition, we manage a

provide them with copper.

fleet

Through our relationships with

of 20-30 time-chartered tankers

mines, mills and steel

at any given time. We have more

consumers, our customers

than 50 years‘ experience serving

benefit from market access and

both our own business and those

liquidity.

of our customers.

Financial & Risk Management We offer risk management, investment, and financial solutions for food, financial and energy customers in world markets.

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Cargill Risk Management We structure and market over-the-counter risk management products on agricultural and energy commodities. Since 1994, Cargill Risk Management has worked with businesses to identify their commodity price risk exposures. We then create tailored risk management products that mitigate these risks and protect operating margins.

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Black River Asset Management LLC Black River Asset Management LLC, an independently managed subsidiary of Cargill, Incorporated, is a global asset management company that provides sophisticated institutional investors with alternative investment opportunities.

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CarVal Investors CarVal Investors is a global leader in managing opportunistic value investments in credit-intensive assets, including

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Consumer, residential and commercial and industrial loan portfolios

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Real estate

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Corporate securities

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Special opportunities

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Food & Beverage Ingredients Foodservice Farmer Services Industrial / BioIndustrial Personal Care Pharmaceutical Salt Our Brands Ground Beef Recall

PRODUCTS & SERVICES Edible oils and Food Ingredients Cargill foods India processes, refines and markets a wide range of indigenous and imported edible vegetable oils, fats and blends for the food industry. We serve household consumers with packaged, branded and vitamin-fortified edible oils and vanaspati (hydrogenated fats). We also offer high quality food ingredients from our global portfolio and deliver a broad array of ingredient solutions to cater to the growing needs of the food manufacturers and food service industry in India.

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Serving Customers Our customers are in the retail, food service sector and beverage industry. We connect with them at different points of their value chain and contribute to their growth by leveraging on our extensive global portfolio and knowledge base. New product development and applications, supply chain efficiencies, quality and reliability indices are just a few of those leverage points. We also bring in our unique value proposition through customized solutions. Serving Consumers In India, our differentiating factor is our business model. Alongside customers, we serve household consumers with a host of brands including NatureFresh, Gemini, Sweekar and Rath. We fortify all of our packaged refined edible oils with the vitamins A, D and E, which are essential for proper growth, cognitive development and overall health. We reach about 25 million people across India with these brands. Oil Refining Capabilities We own and operate three vegetable oil refineries located at Paradeep (Odisha), Kandla (Gujarat) and Kurkumbh (Maharashtra). These plants are state-of-the-art, combining latest refining technology with trained technical teams.

Our Product Brand Portfolio Sweekar® Sweekar refined sunflower oil comes with a unique blend of High Oleic Sunflower Oil (HOSUN), for improved heart health. HOSUN contains higher Mono Unsaturated Fatty Acids (MUFA) than olive oil. MUFA is good fat and is a healthy alternative to saturated fats; it improves blood lipidprofile and so diets with healthy amounts of MUFA have a host of amazing health benefits. Sweekar is one of the leading premium sunflower oil brands across the country and is available in multiple pack sizes.

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Rath® With more than 50 years of presence in India, Rath is a heritage vanaspati brand. It is a trusted name associated with cooking delicious Indian traditional recipes and sweets. Rath is one of the leading brands in north and central India and is available in multiple pack sizes. Gemini™ A pioneer in sunflower oil, the Gemini brand spans a wide range of edible oils such as soybean, groundnut, cottonseed, filtered groundnut, mustard oil and Vanaspati. Gemini oil helps in preparing healthy food and retains its freshness for longer time. Gemini is one of the leading brands in west, north and south India and is available in multiple pack sizes. NatureFresh® NatureFresh Acti-Lite refined oils ensure that you stay light and active. As proven by laboratory tests, food cooked in NatureFresh Acti-Lite absorbs less oil. The NatureFresh range of oils is available in multiple pack sizes and has many variants. It is available as refined soybean and sunflower oil; NatureFresh Purita, kachi ghani pure mustard oil; NatureFresh Shakti, refined palmolein oil; and NatureFresh Oliante, olive oil imported from Spain. It is one of the leading brands in east and north India.

Food Ingredients Our customers in the Indian food service industry are increasingly improving their products to address changing consumer preferences. Leveraging our global portfolio and technical expertise, we have introduced a broad range of high quality food ingredients and ingredient systems to cater to different industries. Through these, we ensure that our customers can create the finest experiences across food and beverage products. Our ingredients‘ portfolio include cocoa powder; starch; lecithin; texturisers; emulsifiers; liquid glucose; low-to zero-calorie sweeteners, among others. 15 | P a g e

Agricultural Commodities Connecting producers and users of grains, oilseeds, sugar and cotton through origination, processing, marketing and distribution capabilities and services. 

GRAIN AND OILSEEDS Cargill India is one of the largest originators and marketers of food and coarse grains in India. We handle wheat, corn, rice, pulses, millets, barley and sorghum as well as oilseeds including soybean, rapeseed, groundnut and vegetable oils and meals. We source grains and oilseeds from the domestic market as well as import and export them. Our customers include leading food businesses, flour millers, feed millers, distillers, brewers and starch manufacturers. To ensure quality, price security and supply for our customers, we offer logistical flexibility and bring efficiencies in the supply chain. Leveraging our global market reach, we export corn and soybean meal to the Asia-Pacific region. We import pulses to augment its supply in the Indian market and cater to the growing demand of consumers for vegetable protein. We are present in major grain and oilseeds producing and consuming states in India and operate through regional merchandising and origination offices and multiple storage locations. We process and crush soybean and rapeseed across western and central India.

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SUGAR: Cargill India originates, stores and supplies raw and plantation white sugar and participates in export and import depending on the surplus or deficit situation in India. We have suppliers in the sugar-producing states of Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh and serve a wide range of customers. Our customers include leading sugar manufacturers and food and beverage producers. We also serve customers in Sri Lanka, Pakistan, Afghanistan, Nepal and Bangladesh. We use our global expertise to provide them market insights, logistics management, price protection and quality assurance. Silkroad Sugar is Cargill‘s joint venture sugar refinery with EID Parry. The refinery has a production capacity of 600,000metric tons a year. Located in a Special Economic Zone in Kakinada, Andhra Pradesh, Silkroad Sugar primarily serves the demand from customers in the Asian export market.

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COTTON: Cargill Cotton, one of the world‘s largest and oldest cotton businesses, is respected for its experience, expertise, reliability and commitment to customers. Cargill‘s cotton business can be traced back to 1851 when Ralli Brothers was incorporated in Kolkata (formerly Calcutta) and Mumbai (formerly Bombay). Ralli Brothers was bought over by Cargill in 1981 and in 2002, the name of the cotton business was changed to Cargill Cotton. India is the world‘s second largest producer of cotton and cotton textiles. Our operations in India form an important part of Cargill‘s global network of buying, selling and merchandising cotton as well as cotton gins and warehouses that service growers, ginners and textile mills around the world. We have a network of value chain participants who help us source and supply the best cotton into and out of the country. We work closely with both suppliers and users of Indian cotton to strengthen their competitiveness in the global markets making Indian cotton the preferred choice by mills around the world. We offer a range of customer solutions that include price risk management and supply chain management.

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ANIMAL NUTRITION Cargill is one of the leading suppliers of animal nutrition products worldwide. With our global expertise in supply chain and risk management, we are able to offer distinctive value to meet our customers‘ needs through high quality feed production and efficient distribution. Our market leading brands and on-trend products support the care, growth, and efficiency of various livestock, aqua and leisure animals. We strive to be the best choice in animal nutrition solutions. Our offering includes feed ingredients, feed formulations, management solutions, risk management services, compound feed, premixes, feed additives and customized solutions. We serve the animal nutrition market primarily through two businesses, Cargill Feed and Nutrition and Cargill Premix and Nutrition. We have a network of marketing and branch offices, a technology application center and seven manufacturing facilities in India. We offer compound feed and premix products under several brands including Cargill, Purina, Provimi and Citura.

TRADE AND STRUCTURED FINANCE Cargill‘s Trade and Structured Finance expertise in financial markets helps our businesses manage risks around letters of credit, other cross-border credit and financial risks associated with trade and commodity finance. We complement the efforts of our businesses by providing treasury, financial and balance sheet solutions for their customers, suppliers and service providers. We focus on addressing financial and risk management issues, providing working capital management and restructuring solutions and offering crossborder trade advisory services and short-term and long-term trade commodity related financing. We also operate a 100 percent foreign owned non-banking financial company titled Cargill Capital and Financial Services India Private Limited.

ENERGY, TRANSPORTATION AND METALS Cargill Energy, Transportation and Metals (ETM) transparently manages global commodity supply chains for its customers. It offers a unique combination of expertise to develop physical and financial solutions in the natural gas, power, coal, petroleum, petrochemicals, ferrous base metals and ocean freight markets. As both consumer and supplier, ETM combines in-depth analysis of global commodity markets along with practical experience to create the insights that benefit customers. By acting responsibly and thinking innovatively, it helps customers focus on core activities and meet their growth objectives. ETM employs over 1,000people with regional hubs in Europe(Geneva), the Americas (Minneapolis, Houston, New Jersey, Sao Paulo),Asia (Singapore, Shanghai, Beijing, Mumbai) and Africa (Johannesburg).Cargill‘s ETM business in India has grown rapidly in the past five years, based on its customer offerings in ocean freight, coal, iron ore and steel. By working closely with our customers and understanding their needs, we have developed a range of physical and financial solutions that help them optimize the efficiency of their supply chains.

BLACK RIVER ASSEST MANAGEMENT Black River is a global alternative asset management firm providing hedge fund and private equity solutions to institutional investors. Formed in 2003, Black River is an independently managed subsidiary of Cargill. Black River‘s track record is built on core competencies in fixed income and equity relative value, commodity and emerging markets trading and investing. Capitalizing on its extensive international network

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and relationship with Cargill, Black River combines broad perspectives with focused strategies to deliver portfolio diversification and absolute returns.

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In India, Black River provides the following services. Analysis of macro, political and economic developments. Analysis of the domestic investment markets and indices. Identification and due diligence of potential investment opportunities.

NOURISHING INDIA

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India‘s complexity is a paradox. It is the world‘s fourth largest economy (in purchasing power parity terms), has a large number of millionaires and a huge consumer base. On the other hand, it is also a country where a large part of the population, especially children, faces nutritional challenges. Our corporate responsibility programs in India focus on nourishing people and possibilities. We work with partners to provide replicable and scalable solutions to contribute to food security in the country. Nourishing India‘ is a significant initiative in that direction. It is our umbrella program that includes the following multi-pronged interventions: Improving Food and Nutrition Security Improving Education and Livelihoods Supporting Community Development Improving food and nutrition security: We contribute to food security by providing consumers with nutritious food that helps improve diets for healthier lives. We collaborate with partners in the public and private sectors to find long-term solutions to hunger and malnutrition to ensure people have access to safe, nutritious and affordable food.

 Fortifying edible oil Food fortification is one of the most effective ways to deliver micro-nutrients to large population groups as edible oil is consumed by almost 99 percent of households in India. We fortify all our packaged refined edible oils produced in India with the essential vitamins A, D and E. At present we reach approximately 25 million consumers with our fortified oils. The cost of fortification is absorbed by us and not passed on to our consumers.  Enabling food banks ―Together with Global Food Banking Network and Aid matrix Foundation, we have established the India Food Banking Network and the first food bank of India --Delhi Food Banking Network. The food bank is expected to harness the partnership between the government and the private sector to augment existing initiatives as well as develop new models in food distribution. It will allow donors to gain access to safe and efficient distribution channel that provides an outlet and an effective system for donated or procured food to reach those who need it the most. We are working towards setting up more food banks across India.‖  Fighting malnutrition In three districts of Madhya Pradesh, Cargill is working on a two-year partnership with United Nations World Food Programme (UNWFP) to develop a model state demonstrating improvement innutrition. From educating communities to providing seeds for kitchen gardens, we are working to improve nutrition in the region. Funded with US$ 3 million, the project titled ‗Fast Track Nutrition Program‘ aims to reach 766 18 | P a g e

villages and benefit by 2013 more than one million people, especially children under the age of six and pregnant and lactating women.  Engaging policy stakeholders In association with our partners such as Global Alliance for Improved Nutrition (GAIN) and UNWFP, Cargill engages with key stakeholders including the central and state governments to advocate for food fortification and to make fortified food available through the government–run public distribution systems. Improving education and livelihoods: A five-year partnership between Cargill and CARE, a leading humanitarian organization fighting global poverty, focuses on addressing underlying causes of poverty in the district of Kutch in Gujarat through Kutch Livelihood Education Advancement Project. The economy of Gujarat is among the fastest growing in India. Yet hunger, illiteracy and extreme poverty persist in Kutch. Through the US$ 2.5 million Kutch Livelihood Education Advancement Project (K-LEAP), the five-year Cargill-CARE partnership is working to improve the quality and accessibility of primary education for more than 40,000 children, while promoting economic opportunities and increased incomes for 9,000 rural families. The project was launched in 2008.  Improving milk production Most farmers in Kutch depended on subsistence farming when the project began. As dairy farmers could produce only a limited amount of milk, the area lost its market with the National Dairy Development Board. We worked to bring farmers together to pool their milk supplies at collection stations and negotiated with the Board to reinstate agreements and purchase milk again. Farmer incomes have increased by400 percent ever since.  Providing girls with access to education As a part of K-LEAP, we are working to improve girls‘ access to education, recognizing it as the cornerstone of empowerment. When we began our work with Kasturba Gandhi Balika Vidyalaya in Kodki village, there were only 17 students. Today, 85 students are enrolled. Based on this success, we expanded our education improvement outreach to include more than130 schools, providing science demonstration kits, textbooks, teacher training, sports equipment and new curriculum to improve students‘ success.  Empowering women Women in Kutch were traditionally confined to their homes, with limited ability to even socialize with other women in their community. We recognized an opportunity to motivate them to invest in their own future by organizing self-help groups. Seed money from Cargill‘s donation is now provided to the groups. With that, they are able to pool their own resources and distribute micro-loans for various needs including purchase of farm equipment and setting up small enterprises. Today, more than 5,000 women in Kutch are members of self-help groups and are working to reduce poverty caused by limited access to credit.

Supporting community development We invest and support programs that focus on improving nutrition and health, education and environment in communities where we operate.  Aiding education for underprivileged children

19 | P a g e

We support the Pragati Vatika School in Gurgaon by funding all school expenses and improving infrastructure to help the school cope with rising demand. The school has over 300 children of daily wage laborers. Our employees volunteer as teachers and mentors. We support Rural Development Foundation (RDF), an NGO that runs five schools and one junior college in the rural areas of Andhra Pradesh. At least 570 students in the RDF Kalleda School have been able to continue their education while 25 students in RDF Matendla School have benefited through direct sponsorships. In partnership with NGO, ASED (Action for the support of deprived children),we have improved transportation, built more classrooms and set up computer and English-learning laboratories for 1100 students in Pardada Pardadi Girls Vocational School in Anoopshahr, Uttar Pradesh. We supported the Rabbani School in Madhya Pradesh‘s Susera village with a school bus, classrooms and sanitation facilities. The school, with 400 students, is a center for education and practical training in agricultural practices and animal farming. The project was implemented by ASED. We supported the Rajanagaram Zilla Parishad School in Rajahmundry, Andhra Pradesh, by building a multipurpose hall to serve the needs of both teachers and students. The school is managed by the government and has 950 students.  Providing care to kids of construction workers We support Mobile Crèches, an NGO, to ensure a healthy and secure daycare environment for children of labourers who work at construction sites. These daycare centres create favorable conditions for their cognitive development by providing nutritious food and basic education. We also support Mobile Creches for providing skill-building opportunities to the mothers and for creating awareness among stakeholders on issues affecting these women and children.  Training in modern animal husbandry We provide farmers the knowledge and tools they need to improve the productivity and health of their animals. The initiative has benefited 25,000 dairy, poultry and aqua farmers across the southern and western regions of India.  Extending support in times of crisis As a member of the Corporate Disaster Resource Network, we provide leadership in bringing corporates into the fold of the National Disaster Management Authority for joint response to any disaster. We have distributed food and funds during the super-cyclone and flash floods in Odisha and floods in Bihar and Leh.

FINANCIAL HIGHLIGHTS In fiscal year 2012, Cargill had $133.9 billion in sales and other revenues. Earnings from continuing operations were $1.17 billion. US Dollars in millions

2012

2011

Percent change

$133,859

$119,469

12

Net earnings

$1,175

$2,693

(56)

Cash flow from operations

$3,507

$4,551

(23)

Sales and other revenues

20 | P a g e

INTRODUCTION TO INDIAN SPICES

21 | P a g e

A COMPREHENSIVE UNDERSTANDING OF THE INDIAN SPICES MARKET IN THE CONSUMER SPACE: A BRIEF BACKGROUND A spice is a dried seed, fruit, root, bark, or vegetative substance primarily used for flavoring, coloring or preserving food. Spices are an integral part of Indian food, with consumption not only in households, restaurants and other eateries but also in food processing industry such as pickles, sauces, instant curry powders, ready-to-eat food preparations and so on. Spices are fast moving consumable items and have large potential. India produces 70% of global spice production. India was the largest producer and consumer of spices with a production of around 5.93 million tons in 2010-11

TYPES OF SPICES         

Red Chilli Turmeric Coriander Cloves Pepper Green/Black Cardamom Asafoetida (Hing) Cumin Seed (Jeera) Dried fenugreek leaf & many others.

22 | P a g e

FORMS OF SPICES

STRAIGHT

WHOLE

BLENDED

MANUFACTURING PROCESS

Cleaning & Washing

Drying & Grinding

Sieving

Packing

23 | P a g e

SPICE GROWING STATES OF INDIA

Andhra Pradesh Karnataka

Gujarat

Orissa

Rajasthan

Chilli Tamil Nadu

Uttaranchal

Uttar Pradesh

Madhya Pradesh West Bengal

24 | P a g e

Andhra Pradesh

Arunachal Pradesh

Karnataka

Orissa

Maharasthra

Tamil Nadu

Tripura

Turmeric Kerala

Meghalaya

West Bengal

Assam Uttar Pradesh

Bihar

Uttar Pradesh

Coriander

Rajasthan

25 | P a g e

Uttaranchal

SITUATION ANALYSIS  Changing of Life style and especially with changes in food habits and increase of Income level, the use of powdered spices has increased.  Of late, the market for ready mix of spices has grown significantly.  Numbers of National brands have appeared in the market such as Everest, MDH, Catch, Roopak Masala, etc. besides these, some of local brand are also there in the market.  In addition there are numbers of small units producing powdered spices, both in loose as well as packet formed.

SIZE AND CONSTRUCT OF THE MARKET SPICE WISE AREA & PRODUCTION 2008 – 09 Spices

Area

Prodn.

(Area in Hec, Production in Tonnes) 2010 – 11(P) 2011-12(Adv.Est.)

2009 – 10 Area

Prodn.

Area

Prodn.

Area

Prodn.

Pepper

181299

50000

198986

50000

183780

48000

201381

43000

Cardamom(Small)

71170

11000

71110

10075

71012

10380

71285

15000

Cardamom(Large)

27034

4300

27034

4180

26984

3918

26460

3860

Chilli

802896

1381531

809699

1470352

716428

1299191

804792

1276301

Ginger

143861

831607

142089

708256

167432

937043

155063

755618

Turmeric

195076

894590

187535

927912

232022

1268280

223452

1171054

Coriander

537327

471515

530789

501485

474250

372366

557870

532947

Cumin

527132

283000

517133

303943

625087

403744

593980

394328

Celery

4117

5329

4312

5248

3776

4609

4174

5264

Fennel

74149

114277

53497

83576

81890

125710

99554

142949

Fenugreek

74512

97533

71985

88979

94760

127850

93605

115929

Ajwan

26148

18301

20628

8950

27257

19327

35376

26778

Dill seed

13139

13363

8537

10447

26698

33090

21900

23632

Garlic

190468

1003758

187271

975404

202888

1085740

242491

1228324

Tamarind

54281

194087

44186

125524

56530

203936

58428

202574

Clove

2172

1002

2081

764

2195

963

2387

1105

Nutmeg

16400

11362

16001

11271

17760

12088

17485

12574

Cinnamon

186

363

150

30

187

36

508

35

Saffron

2667

5.93

2691

4.86

2715

7.99

2989

9

2948558

5387092

2899887

5286552

3043583

5933126

3213180

5951281

Grand total including others

GRAND TOTAL IN MLN TONNES

Source: Spice board of India. 26 | P a g e

5.39

5.29

5.93

5.95

1000000 800000

CHILLI

600000 400000 200000 0

2009-10 Production

250000

2010-11 Production

CHILLI

200000

150000

100000

50000

0

2009-10 Area

27 | P a g e

500000

TURMERIC

450000 400000 350000 300000 250000 200000 150000 100000 50000 0

2010-11(P) Area

ANDH MAHA WEST UTTAR GUJAR MIZOR ASSA MEGH TRIPU KERAL RA TAMIL ORISS KARN RASHT BENG ANCH PRADE NADU A ATAKA AT AM M ALAYA RA A RA AL AL SH 69159 51446 26830 18035 13876 15779

1936

4500

14963

1928

1295

798

2391

2010-11(P) Production 466928 277980 202920 90448 66791 38300 28468 22500 10623 10058

9522

6651

6216

Analysis: According to the figure, Andhra Pradesh has highest production level of Turmeric followed by Tamil Nadu, Orissa & Karnataka. Whereas, Kerala is at the bottom of the list.

250000

CORIANDER

200000 150000 100000

218899

50000

70872

0 RAJASTHAN MADHYA PRADESH

21568

ASSAM

2010-11(P) Area

32634

13749

GUJARAT

ANDHRA PRADESH

11200

ORISSA

2010-11(P) Production

Analysis: Rajasthan holds the maximum share of producing coriander in the Indian Market. In 2009-10, production was 281076 tons having area 232139. In 2010-11, it was about 218899 tons with area of 197891. Whereas other states also contribute in producing coriander like UP, which is 3444 tons in area of 6082 in 2010-11 28 | P a g e

3444

UTTAR PRADESH

200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0

Area

Production

Area

Production

2009-10

2010-11(P)

KARNATAKA

19706

15000

21061

18240

KERALA

171489

27500

172182

20640

2786

7500

3009

9120

TAMIL NADU

Analysis: Kerala shows the highest share of producing Pepper in 2009-10 & 2010-11. In Kerala, Pepper production reached 20640 tons in the year of 2010-11. This is a decrease of 24.94% compared to 2009-10. Apart from Kerala, Karnataka & Tamil Nadu showed growth in 2010-11.

Cumin Seed 350000 300000 250000 200000 150000 100000 50000 0

Area

Production

Area

2009-10

Production 2010-11(P)

GUJARAT

311755

221906

292847

219215

RAJASTHAN

203854

80531

330634

114925

Analysis: Gujarat & Rajasthan are the major states producing Cumin Seed. In Gujarat, area under production have decreased in 2010-11 as compared to 2009-10 and so on the production. However, in Rajasthan, the scenario is reversed both the area under production and production have increased marginally.

29 | P a g e

Major State wise Area & production of Spices in India 2008-09

2009-10

2010-11 (Adv)

State

)Area- Hec )

)Prdn-tons)

)Area-Hec)

)Prdn-tons)

)Area-Hec)

)Prdn-tons)

Andhra Pradesh

007233

0706121

002700

0766122

710100

0020020

Arunachal Pradesh Assam

1711

20206

1000

22201

1700

21620

17210

706127

17227

771203

17032

011260

Gujarat

270203

223030

726733

271210

721270

217636

Karnataka

776000

672227

722063

060272

700772

731273

Kerala

702076

002703

727722

077733

727663

002167

Madhya Pradesh

772727

007122

762271

012627

NA

NA

Maharashtra

000026

16063

003633

16733

20203

710707

Meghalaya

00002

60222

00037

62010

07030

67163

Mizoram

76770

11677

00773

23733

01761

030701

Orissa

072073

737003

072133

706273

766103

711113

Punjab

02271

66137

01277

21212

01637

62267

Rajastan

206172

202172

222671

260621

237702

623207

Sikkim

00207

72076

00371

70223

70621

0003

Tamilnadu

001777

717222

006123

711010

070063

023232

Uttar Pradesh

26007

770026

22671

017067

26677

730010

Uttaranchal

2220

21112

1767

62712

1216

20176

West Bengal

007107

731276

000761

700071

007011

700207

Grand Total Including Others

8?:>;;>

;9>=8?8

8>??>>=

;8>9

;?9938<

Source: Spice Board of India

30 | P a g e

Spice/State Wise Area and Production of Spices (Area in Hectare, production in Tons) SPICE

STATE

2008-09 Area

PEPPER

CARDAMOM(SMALL)

CARDAMOM(LARGE)

CHILLI

GINGER

31 | P a g e

Production

2009-10 Area

Production

2010-11(P) Area

Production

KARNATAKA

18847

6236

19706

15000

21061

18240

KERALA

153711

33991

171489

27500

172182

20640

TAMIL NADU

3117

716

2786

7500

3009

9120

Total including others

181299

50000

198986

50000

201381

48000

KERALA

41588

8550

41593

7800

41242

7935

KARNATAKA

25021

1700

24956

1550

25209

1710

TAMIL NADU

4561

750

4561

725

4561

735

Total

71170

11000

71110

10075

71012

10380

SIKKIM

23729

3675

23729

3540

23679

3310

WEST BENGAL

3305

625

3305

640

3305

608

Total

27034

4300

27034

4180

26984

3918

ANDHRA PRADESH

210792

781671

206541

830990

195471

638298

KARNATAKA

125965

143481

138711

144044

113849

128806

WEST BENGAL

63249

96002

63450

95765

63618

96216

MADHYA PRADESH

47332

58455

54414

90569

54414

90569

ORISSA

75510

64300

75530

64320

76010

70390

MAHARASHTRA

97200

45400

97200

45400

34604

71749

GUJARAT

31810

36215

32854

42305

36570

48051

TAMIL NADU

62617

32924

58476

31230

53626

21690

PUNJAB

10414

17256

10524

17492

10555

17912

RAJASTHAN

15157

19976

13812

13649

13381

14425

ASSAM

17010

10862

17111

11727

18808

12237

Total including others

802896

1381531

809699

1470352

724065

1303820

KARNATAKA

29092

273253

44837

135031

46511

168310

ORISSA

16530

33370

16840

117720

17120

126530

ASSAM

15220

103915

15690

107893

16386

112548

MEGHALAYA

9283

50286

9321

54009

9438

52922

ARUNACHAL PRADESH

6356

47181

6401

49663

6601

52304

TURMERIC

CORIANDER SEED

CUMIN SEED

32 | P a g e

GUJARAT

3408

49504

3170

47694

4378

69581

UTTARANCHAL

2600

31288

4007

40418

4153

41944

SIKKIM

9237

40866

6700

35970

6700

35970

MIZORAM

9391

34290

6200

31000

NA

NA

KERALA

7421

30809

5408

28603

6088

33197

WEST BENGAL

11131

23832

11221

24128

11406

24606

ANDHRA PRADESH

2194

11684

2317

16674

2472

23054

Total including others

143861

831607

142089

708256

170957

942860

ANDHRA PRADESH

61607

403228

59475

364044

69159

466928

TAMIL NADU

34637

172334

33368

169311

51446

277980

ORISSA

25110

61500

25320

189350

26830

202920

KARNATAKA

15320

93817

17872

65780

18035

90448

MAHARASHTRA

6799

8497

6800

8600

13876

66791

WEST BENGAL

15212

35372

15464

36390

15779

38300

GUJARAT

1686

23305

1759

25015

1936

28468

MIZORAM

9627

39855

4500

22500

4500

22500

ASSAM

14459

10497

13883

9719

14963

10623

MEGHALAYA

1959

10046

1953

9991

1928

10058

TRIPURA

841

5664

841

5965

1295

9522

UTTARANCHAL

692

6740

738

6126

798

6651

KERALA

2782

6364

2438

6066

2391

6216

Total including others

195076

894590

187535

927912

232543

1271250

RAJASTHAN

250516

280306

232139

281076

197891

218899

MADHYA PRADESH

141393

59075

150464

70872

150464

70872

ASSAM

24483

39480

24531

46865

21741

21568

GUJARAT

27347

38420

28675

42649

20561

32634

ANDHRA PRADESH

33439

15615

37468

20605

20313

13749

ORISSA

19090

9140

19060

9440

21380

11200

UTTAR PRADESH

5774

3417

6742

3805

6082

3444

Total including others

537327

471515

530789

501485

474244

403740

GUJARAT

359938

242165

311755

221906

292847

219215

RAJASTHAN

165703

39362

203854

80531

330634

114925

Total including others

527132

283000

517133

303943

625150

335800

CELERY SEED FENNEL SEED

FENUGREEK SEED

AJWAN SEED

DILL SEED

GARLIC

33 | P a g e

PUNJAB

4117

5329

4312

5248

3776

4609

Total

4117

5329

4312

5248

3776

4609

GUJARAT

64867

106498

42833

76128

52792

97504

RAJASTHAN

7499

6249

8754

5601

26967

26157

WEST BENGAL

1028

1029

1034

1033

1034

1033

UTTAR PRADESH

697

489

875

814

842

740

Total including others

74149

114277

53497

83576

81890

125710

RAJASTHAN

62894

77319

58917

70328

80378

94200

GUJARAT

4296

10308

4399

9015

5244

13910

HARIYANA

3442

1700

5356

4300

5241

12157

WEST BENGAL

2444

2585

2451

2649

2452

2650

UTTARANCHAL

400

2540

433

2532

461

2951

Total including others

74512

97533

71985

88979

94760

127850

RAJASTHAN

15240

13456

15483

5450

16896

12595

GUJARAT

5536

2843

5145

3500

5299

4334

Total including others

26148

18301

20628

8950

27257

19327

GUJARAT

8231

9729

7544

7851

21774

28824

RAJASTHAN

2016

1282

531

453

4533

2430

Total including others

13139

13363

8537

10447

26698

33091

GUJARAT

36580

234439

35733

245124

35898

250085

MADHYA PRADESH

49080

207441

52207

224365

52207

224365

UTTAR PRADESH

33421

196850

31886

169342

32776

175851

RAJASTHAN

21562

101937

24670

98411

31440

186410

ASSAM

8228

47076

8392

48128

7368

27198

MAHARASHTRA

6142

41283

5600

41400

6143

41281

PUNJAB

2997

44217

3514

38441

3735

41314

ORISSA

11080

35800

11050

35710

13120

45760

WEST BENGAL

3480

33319

3521

33744

3535

33879

UTTARANCHAL

1083

6994

1177

7264

1261

8450

KARNATAKA

6757

34407

4698

6603

4234

5467

HARIYANA

460

3100

729

6500

3538

28216

CHHATTISGARH

941

2372

984

2519

1083

2564

TAMARIND

CLOVES

NUTMEG

CINNAMON

SAFFRON

Total including others

190468

1003758

187271

975404

203478

1085740

KARNATAKA

15880

81814

15163

82029

15163

82029

TAMIL NADU

18160

61484

19785

63584

18028

56655

ANDHRA PRADESH

6068

29391

6020

30581

5930

28345

KERALA

14107

20954

12715

19627

11924

31794

Total including others

54281

194087

44186

125524

56531

203936

TAMIL NADU

782

751

719

675

765

714

KARNATAKA

122

174

90

113

90

113

KERALA

1101

73

1206

84

1123

90

ANDAMAN & NICOBAR

167

4

156

5

156

5

Total including others

2172

1002

2081

764

2195

963

KERALA

16187

11249

15931

11269

17545

11911

KARNATAKA

147

110

115

77

115

77

ANDAMAN & NICOBAR

66

3

70

3

70

5

Total including others

16400

11362

16001

11271

17760

12088

ANDAMAN & NICOBAR

78

8

150

31

150

30

KARNATAKA

37

7

34

5

34

5

Total including others

186

363

150

30

187

36

JAMMU & KASHMIR

2667

5.93

2691

4.86

2715

7.99

Total

2667

5.93

2691

4.86

2715

7.99

2948558

5387092

2899887

5286552

3043583

5933126

Grand Total Including others

Source: Spice Board of India

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BRAND OPTIONS

There are number of Spices companies in the market, which are satisfying the needs and wants of the consumers. List of all the brands name are as follows: MDH EVEREST CATCH BMC MTR MOTHERS RECIPE ROOPAK MASALA NILONS SHAAN ASHOK MASALE NATIONAL LAZIZA SUHANA STORE BRANDS

EVEREST Everest Spices is an Indian manufacturer, distributor and exporter of ground spices and spice mixtures under the brand name Everest. It is India‘s largest spices brand based in Mumbai. More than 20 million households use Everest spices regularly. The brand is stocked by 400,000 outlets in more than 1000 towns across India. Everest is a major exporter to the US, the Middle East, Singapore, Australia, New Zealand, East Africa and other countries. More than 3.705 billion packs of Everest sold each year. There more than 42 blends under the Everest brand name. Winner of SUPERBRAND award for the best consumer brand for the years 200304, 2006-07 and 2009-2010 and Consumer Reaction Award (twice in a row, in 2004 and 2005) and others. Everest spices are also available in the USA, Middle East, Singapore, Australia, New Zealand, East Africa, and in many other countries, where non resident Indians trust Everest to provide them the authentic taste of home.

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PRODUCT RANGE

TABLE TOP SPRINKLERS

Pure Ground Spices

Exotic Blended Spices

Tikhalal, Kashmiri Lal, Kutilal

Garam Masala, Pav Bhaji Masala, Chole Masala, Sabji Masala

Turmeric,

Coriander, Cumin Powder

Chicken Masala, Meat Masala, Egg Curry Masala, Tandoori Masala

Hing, Saffron, Kasuri Methi, etc

Jaljira, Rasam Masala, Super Sambhar Masala etc

Chaat Masala

Black Pepper Powder

Free Flowing Table Salt

MDH Mahashian Di Hatti Limited is an Indian manufacturer, distributor and exporter of ground spices and spice mixtures under the brand name MDH. It specializes in several unique traditional blends of spices suitable for different recipes. The company was founded in 1919 by Mahashay Chuni Lal as a small shop in Sialkot. It has since grown in popularity all over India, and exports its products to several countries. It is associated with Mahashay Chuni Lal Charitable Trust. The MDH brand name is very well known throughout India.Today has a range of 52 products available in over 140 different packages. Machines used by MDH, have a capacity to produce 30 tons of spices in powders packed in beautiful consumer pack of different sizes (10g to 500g) in a day. Maximum selling is of Basic Spices (Chilli, Turmeric, and Coriander & Garam Masala). Chunky Chat Masala is also very famous.

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PRODUCT RANGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

AMCHUR POWDER BIRYANI PULAO MASALA BLACK SALT BUTTER CHICKEN CHANA MASALA CHICKEN MASALA CHUNKY CHAT MASALA CHUTNEY PODINA MASALA CURRY POWDER DAHIVADA RAITA MASALA DALMAKHANI MASALA DEGGI MIRCH DHANIA POWDER FISH MASALA GARAM MASALA GOLDEN GARAM MASALA KASHMIRI MIRCH JEERA POWDER

19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

KASOORI METHI KITCHEN KING LAL MIRCH POWDER MEAT KA MASALA PAKORA MASALA PANI PURI MASALA PAV BHAJI MASALA PULAO MASALA RAJMAH MASALA SAMBAR MASALA SHAHI PANEER MASALA TANDOORI CHICKEN MASALA TAVA FRY MASALA T-PLUS MASALA WHITE PEPPER POWDER HALDI POWDER JAL JEERA MASALA

CATCH SALTS & SPICES Catch Spices is India‘s foremost spices brand known for its matchless product quality and innovative approach. Catch spices are ground using the unique state-of-the-art Low Temperature Grinding (LTG) technology, which prevents the evaporation of volatile & delicate oils from spices. Catch Spices thus retain the original aroma and wholesome flavour of authentic spices. The complete assortment comprises of a variety of salt and pepper sprinklers and a diverse range of whole, ground and blended spices. Catch Spices are packed in food grade metal-lined cartons, flexible laminates and convenient composite cans available in a variety of pack sizes Catch is available across 6 categories including Sprinkles, Basic, Blended, Straight Premium Spices. Whole Spices and Hing with around 63 variants and over 150 SKU's.

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PRODUCT RANGE Whole Spices

Straight Spices

Blended Spices

Amchur Anardana Bay Leaf (Tej Patta) Black Pepper whole Cardamom-Big Cardamom-Green Cinnamon Stick Cloves Dhania Whole Ginger Whole Javitri Jeera Jeera Black Khus Khus Kachari Kashmiri Red Chilli Whole Kaloungi Methi Seeds Mustard Powder NutMug Rai Whole Red Chilli Whole Saunf Sounf Cooking Turmeric Whole White Til

Amchur Powder Ajwain Powder Anardana Powder Bay Leaf Powder Black Pepper Powder Black Salt Cardamom Green Powder Cardamom Black Powder Chilli Flakes Cinnamon Powder Clove Powder Dhania Powder Ginger Powder Javitri (Mace) Powder Jeera Powder Kashmiri Mirch Powder Kasuri Methi Kuti Mirch Mustard Powder Red Chilli Powder Turmeric Powder White Pepper Powder Salt

Chana Masala Chat Masala Chatpata chat Masala Chole Masala Chicken Masala Dal Makhani Masala Fish Masala Super Garam Masala Garam Masala Kitchen King Meat Masala Jal Jeera Pav Bhaji Masala Rajma Masala Sambhar Masala Shahi Paner Masala Subji Masala

.

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High Quality

Low Price

High Price

Store Brands

Low Quality

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PRODUCT LINE

 Everest:  Exotic Blended spices (22 in number)  Pure Ground Spices ( 14 in number)  Table Top sprinkles  MDH:  Blended Spices ( 25 in number )  Straight Spices ( 7 in number)  Catch:  Sprinkles  Whole Spices ( 27 in number )  Blended Spices ( 17 in number )  Straight Spices ( 23 in number)

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RESEARCH METHODOLOGY

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RESEARCH TECHNIQUES FOR "UNDERSTANDING INDIAN SPICES MARKET" The numbers of research techniques are used for appropriate information for Indian Spices Market. Different methodology is employed according to the objective and scope defined for research. Basically there are two methods: A. Desk Research or Secondary Research B. Field Research or Primary Research DESK RESEARCH/SECONDARY DATA Desk or secondary research is the search for information from relevant data already available. The data could take the form of information from censuses or information readily available from industry directories. 

Internal sources i.e. company itself



Internet sites of various agencies/organizations



Publications(books, magazines, journals, newspapers)



Market study/survey reports.



Catalogues of MNC‘s or leading world manufacturers.



Company profiles



Market intelligence reports

FIELD RESEARCH OR PRIMARY RESEARCH Field research is employed to collect primary data by: 

Observation method



Survey method Field Research focuses on consumer or buyers motives (e.g. Why they will buy your product instead of your competitors product), which forms the basis of the positioning strategy. The process of conducting field research in understanding the Indian Spices Market includes:



Visiting the retailers shops



Planning of visits



Seeking /making appointments with target companies/organizations



Questionnaire 42 | P a g e

OBJECTIVES OF RESEARCH STUDY To study the Indian Spices Market. To study the Size and Construct of the market: Tonnages & Values. To study the Regional Disparities: Size, Taste, Offerings etc. To study the Brand Options. To study the Brand Positioning. To study the Price Positions. To study the sourcing options.

RESEARCH METHODOLOGY The data for understanding the Indian Spices Market was based on: 

Primary Research.



Secondary Research.

DATA COLLECTION METHOD Primary Data: Visited various consumers and retailers of different areas of Delhi /NCR Secondary Data: Internet, journals, magazines. Data Collection Device: Personal Interview through questionnaire. Sampling Size: -Total Sample: 100 -Retailers : 50 -Consumers: 50 -Area of survey: Delhi/NCR -Duration: 42 days The sources for unpublished data are many, for example relevant data may be available with scholars and research workers. However, these sources are not easy to access and need a lot of persuasion and lot of time. The researcher has not used such resources given the limitation of time available. The researcher has made used secondary data in formulation of research problem and identification of research objectives. Due care was taken to assess such data for its suitability for the study, because many such secondary data was found to be irrelevant to the research problem as also inadequate in the context of the problem which researcher want to study. 43 | P a g e

DATA INTERPRETATION

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DATA INTERPRETATION (BASED ON CONSUMER’S QUESTIONNAIRE)

Q 1) Gender Analysis: 45 40 35 30 25

42

20 15 10 5 0 Are You :

8 Male 8

Female 42

Analysis: The above graph shows that out of 50 samples, 84 % is of females and 16 % is of Males.

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Q2) You are?

20

20 18 16 14

13

14

12 10 8 6 4

3

2 0 Student

Professional

Housewife

Others

You are a

Analysis: The above graph shows that out of 50 samples, 40 % is of Housewives, 28 % is of Professional, 26% is of Students and rest 6% includes others.

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Q3) In which form Consumers buy Spices?

2% 16%

Packed loose Both

82%

Analysis: According to the figure, 82% consumers prefer to buy packed spices where as 16% people are going with loose. Whereas, a combination of 2% buy spices in both.

Q4) Source of Information?

22% 44% 4%

26% 4%

TV

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Newspaper

Recommended

Passing By

Others

Analysis: •

44% gets information about brands through TV.

•

26% shows consumers buy particular brand of spices as recommended by somebody.

•

4 % each shows knowledge of spices brand is available through newspaper and passing by.

Q5) Preferred Place to buy spices?

30 25

26

20

18 15 10 5

4

0 Retail Outlet

Super Market

Analysis: •

52 % shows that consumers prefer to buy from retail outlet.

•

Whereas, 36% shows its – Super Market.

•

8% & 4% conclude whole sale and other places.

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Whole-sale

2 Other

Q6) How frequently consumers buy spices? 35 30

30

25 20

15

17

10 5 3

0 Per Month

Per Week

Other

Analysis: According to the figure, 30 out of 50 customers buy on monthly basis. However 15 prefer to buy on weekly basis. Others include 3 out of 50.

Q7) Reasons for buying particular spices brand? 25

25

20 15 10

9

8

6

5 2 0 Convenient

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Availability

Price

Quality

Brand

Analysis: •

50 % consumers buy particular brand of spices because of Quality factor.

•

18 % include its price, which influence consumers buying decisions.

•

Whereas, 16 % & 12 % includes brand and availability.

Q8) Preferred Brand of Spices?

35 30 29

25 20 15 10 8

5 4

5

4

0 MDH

Catch

Everest

Store Brand

Analysis:  According to fig, MDH is the most preferred brand of the consumers with 58%.  Whereas, Store brand & Everest are 16% & 10%.  However Catch & Other Local brands are 8%.

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Others

DATA INTREPRETATION (BASED ON RETAILERS QUESTIONNAIRE)

Q1) Do you offer loosed or packed spices?

2% 8% Packed Loosed Both

90%

Analysis: According to the figure, 90% Spices are sold in packed form and 8% as Loosed, whereas 2% shows a combination of both.

Q2) In which form customers buy the spices more?

22%

0% 0%

Straight Whole Blended

78%

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All

Analysis: According to the pie- chart, 78% spices are available in the market as a combination of all forms: -Straight, whole, Blended, where as22 % shows Consumers buy spices in blended form.

Q3) A Major chunk of your sale is through?

whole & retail sales 22%

retail sales 78%

Analysis: •

About 78% sale of Spices by retailers is done through retail sales.

•

22% shows retailers sell spices in both ways : -Whole Sale - Retail Sale

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Q) Which pack has more selling?

2% 6% below 250gms 20%

between 250-500gms more than 500gms All of the above

72%

Analysis: Referring to the graph, the sale of 250gms is more (according to 72% retailers), 20% retailers have view that between 250-500gms pack has more sale. 6 % retailers said that 1more than 500gms has more sale.

Q) What attracts customers while buying spices? 25 22 20 15 15

10

5

8

3

2

0 Taste

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Quality

Price

Brand of the spices

Packaging

Analysis: The above graph indicates that quality attract more, it has been stated by 22 retailers out of 50, according to 15retailers it's the brand of the spices which attracts the customer more,8 said that price attracts the customer, and 3 & 2 have their view that its taste and packaging which attracts the customer more

Q) More margins given by? Everest 2%

Store Brand 32%

MDH 54% Other 8%

Catch 4%

Analysis: The graph indicates that 54 % retailers have said that MDH gives them more margin as compared Store brand, whereas 32% have clearly said that Store brand are giving them more margin than any other brand, while the rest of 8% said that other spices company gives them more margin.

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Q) Demand for Spices has risen in the past few years? 30

25

20

15

10

5

0 yes

no

average

Analysis: According to the graph, 48% retailers said yes whereas, 46 % said no. Rest said its average.

Q) Good Distributor? 35 30 30 25 20 15 15 10 5 2

1

2

0 everest

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mdh

catch

other

all

Analysis: The above graph indicates that out of 50, 30 retailers have their opinion that MDH has the good distribution network, whereas 15 retailers have their view that other brand is having a good distribution network, and remaining 2 & 1 said that companies like Everest and catch have good distribution channel.

EACH DEALER SURVEY Each Dealer Survey means the information of all the outlets. It measures the every outlets problem, requirements, and asks their satisfaction with the Company.

In this procedure we go to each shop and meet the shopkeeper. There are different region &different shopkeeper having unique nature. Some are satisfied with Coke and some are not. Sometimes they talk in a rude manner and sometimes they are polite due to satisfaction. We not only try to solve their problems by forwarding it to higher authority but also convince them to sell more and more by providing them immediate offer within one week.

Their problems would be refrigerators not performing well, light is not working, cooling problem, carelessness of salesman who does not maintaining the orders, not going to every outlets daily

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LIMITATIONS •

Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices.

•

It is extremely difficult to persuade retailer to respond to questionnaire.

•

Some of the respondents were not co-operative and many seem to be having no interest.

•

The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out.

•

There was a time limitation.

•

Area was specified.

•

Sometimes the weather conditions were not favorable.

•

I had lack of knowledge about the product and the local market.

•

The time allowed for the project was very short. It was impossible to study deeply in that short period.

SOURCING OPTIONS  Brands like MDH, Everest & Catch are having own manufacturing plants.  MDH is having number of manufacturing plants. Few are at Delhi, Gurgaon, Rajasthan, Ghaziabad (U.P.) Amritsar & Ludhiana (Punjab).  Catch is having 23 manufacturing units in all over India.  Whereas, Local sellers are buying in bulk from whole-sale market, grinding & packaging the spices and selling consumers as its own brand, however targeting only restricted market.

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RESEARCH FINDINGS PRODUCT:

 Consumers prefer to buy packed spices.  Preference is Quality Product.  Spices are in all forms bought by consumers.  250 gms quantity is preferred by consumers. PRICE:  Based on value and competitive pricing.  Selling basic spices of 100gms packet in the price bracket of Rs 30/ Consumers get spices at a rate less than MRP, example: 100 gms of MDH Chilli powder cost Rs 27/- is available at Rs 22, which is Rs 5 less than MRP. PLACE: Distribution - Grocery shops -Super markets -Food Bazaars  Capturing Wholesale markets.

PROMOTION:  Promotion is done through TV ads, Newspapers, Magazines.  Providing gift hampers on festive season to increase their sale volumes.  Facility of credit is also provided to retailers.

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RECOMMENDED STRATEGY  Product:  Companies should launch the basic spices like Chilli, Turmeric, Coriander & Garam Masala.  Company should launch its product in the packet below 250 gms.  Price:  Pricing strategy should be based on relative prices of the other brands/ value-based & competitive based.

 Place:  Distribution through organized retail malls like: -Food Bazaar -Hypercity -Grocery Shops, etc.  Online distribution for bulk purchases for Industrial market.

 Promotion:  Newspaper- source of communication available to all and used by all sections of people.  Promotions through few cooking shows on television.  Billboards, Public Space, Hoardings etc.  Credit facility should be provided to retailers.  Small sachet at discounted price to offer consumers ―to try before you buy‖.

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QUESTIONNAIRE FOR CONSUMERS ON SPICES Name: Occupation:

Q1) Do you buy packed spices or loosed? ______________________________ Q2) Source of Information from which you come to know about different brands of spices. a) TV b) Newspaper c) Recommended by someone d) Passing By e) Other

Q3) From which place you prefer to buy? a) Retailer Outlet b) Super Market c) Whole-sale d) Other

Q4) How frequently do you buy spices? _________ time per month _________ per week _________other

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Q5) Reason for buying this particular brand of product? a) Convenient

d) Quality

b) Availability

e) Brand

c) Price

f) Other

If Yes, please specify the reasons _______________________________________________________________________________________ ___________________________________________________

Q6) Please rank the following factors in the order of important to you when making a buying decision for spices (1-being most important,5- being lease important) ___________ Price

_____________Referral

___________ Availability

___________ Brand

____________Location _____________Other

Q7) Which brand of Spices you prefer the most? _____________________________________

Q8) What do you consider a reasonable price for the average bottle/ packet of spices? ____________________________________________

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QUESTIONNAIRE FOR RETAILERS ON SPICES Name of the Retail Outlet: Location: Contact Number: Q1) Do you offer packed spices or loosed? (

) Packed

(

) Loosed

Q2) In which form customers buy the spices more? (

) Straight (

) Whole ( ) Blended (

) All

Q3) Which brands of Spices does the shop sell? _____________________________________________________________________ Q4) What according to you is the favoured brand of your customer base. Please specify reasons of them being favoured. _______________________________________________________________________________________ ___________________________________________________ Q5) Amongst all brands which two brands are close competitors in terms of traded volume? ___________________________________________________________ Q6) A major chunk of your sale is_________wholesale sales to small traders _________ retail sale

  

Q7) Which pack has more selling Below 250gms Between 250-500gms More than 500gms Q8) Please rank the three best performing product categories in your retail business last year: ____________________________________________

Q9) Which brand of Spices has the highest sales volume (i.e. how many in 1 day) __________________________________________________ Q10) What attracts customers while buying the spices?? ( ) Taste ( ) Quality ( ) Price ( ) Brand of the spices (

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) Packaging

Q11) Are there any customer complaints about the existing brands of Spices?

(

) Yes

(

) No

Q12) Has the demand for Spices risen in the past few years? (

) Yes

(

) No

Q13) Which company gives you more margins on the product? (

) Everest ( ) MDH ( ) Catch ( ) Other

Q14) On which product you get more offer and discounts from distributor? (

) Everest ( ) MDH ( ) Catch ( ) Other

Q15) Which company has good distribution channel? (

) Everest ( ) MDH ( ) Catch ( ) Other

Q16) Which product demand is more? (

) Everest ( ) MDH ( ) Catch ( ) Other

Q17) Rates of spices are governed by Govt, how you manage to earn in such a competition. (Profit Margin) (

) Below 10% (

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) Between 10-25% (

) More than 25 %

BIBLIOGRAPHY

Books: • • •

Research Methodology- C.R. Kothari. Brand Positioning- Sen Gupta. Marketing Management- Philip Kotler.

Websites: • • • • • •

http://www.google.com http://www.wikipedia.org http://www.cargill.com http://www.indianspices.com http://www.mdhspices.com http://www.everestspices.com

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