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INTRODUCTION
With a history that goes back to 50 years, B.L. Agro Oils Ltd. is a company with a
simple corporate objective - to manufacture, package and market the purest
possible edible oil that would offer healthier and tastier solution to millions of
consumers. Currently, B.L. Agro is in the business of Refining, Quality Control,
Packaging and Marketing of branded mustard and other edible oils.
VISION
To be a way of life for every Indian.
MISSION
To be the benchmark in purity and perfection. To achieve a leadership position in
the Indian market and to become the preferred Indian edible oil name globally.
QUALITY POLICY
B.L. Agro Oils Ltd. is committed to total customer satisfaction, and compliance
with regulatory bodies at all times and at maximum effectiveness.
We aim to
- Consistently enhance our understanding of market dynamics and changing
customer needs so as to offer finest quality products that at all times meet our
customers' expectations and the ever changing demands of the market place.
- Provide a high level of service to our customers with minimum cause for
complaint.
- Maintain a healthy & constructive work environment that enables personnel to
produce
Optimal
output.
MANAGEMENT
The foundations of B.L. Agro were laid half a century ago by its Managing
Director,
Shri Ghanshyam Khandelwal - a veteran of the Indian mustard industry. Since then
the management of B.L. Agro has gained an unmatched, in-depth insight of the
industry and the continuously evolving customer needs. The leadership at B.L.
Agro has a vision for the future and their acumen in adapting to the changing times
has
translated
into
consistent
growth
by
the
company.
However, the most important attribute of the B.L. Agro leadership is the un-fallible
commitment towards quality, towards customers and towards community at large.
At B.L. Agro 'No Compromise with Quality' is a guiding philosophy. And the
management takes it as their responsibility to not just ensure the highest quality
standards of company's products but also to instill this 'quality attitude' in every
member
of
the
B.L.
Agro
organization.
Another distinctive characteristic of the B.L. Agro management team is their strong
belief that Success and growth do not mean much unless accompanied by trust
and respect from the community. And over the years this belief has ensured that
as a corporate citizen, B.L. Agro Oils Ltd. earns an image of one of the most
respected and revered organization in its region of activity.
Company Profile Directors
Ghanshyam Khandelwal
Managing Director
A true entrepreneur, Ghanshyam Khandelwal stepped into the mustard oil trading
business in the 1950s when he was still at a very young age. Beginning from
Bareilly, he single-handedly expanded operations and soon transformed Bail Kolhu
into one of the most preferred mustard oil brand in the entire belt of Eastern UP.
A man of foresight and vision Ghanshyam Khandelwal has been the guiding force
behind consistent growth of B.L. Agro Oils Ltd. With an eye on the future, he has,
over the years, displayed a tremendous prowess for anticipating the changing
consumer needs and has repeatedly led the organization to be a winner in a
dynamic industry scenario. The mantras of his success include his unflinching
commitment towards quality and his passion for perfection.
An un-doubted achiever, he is a man of undaunted determination and courage
along with exemplary business acumen.
What distinguish Ghanshyam Khandelwal are his philosophies that originate from
his commitment towards the community. A man of values, he strongly believes in
business ethics and corporate social responsibilities.
Ashish Khandelwal
Director - Finance & Sales
Post Graduate in Commerce, Ashish Khandelwal joined his father's business at a
very young age. A quick learner and a very hard worker he learnt the nuances of
the trade within no time and established himself as a growth motivator by bringing
in
new-age
marketing
concepts
and
fresh
opportunities.
success.
Having spent over 12 years in this trade, Ashish Khandelwal possesses a rare
combination of experience as well as youthful exuberance. With a futuristic
outlook, he has an unmatched ability to think ahead of the times and a vision that is
set to take B.L. Agro into a glorious future.
Richa Khandelwal
Director Marketing
BTech from IET, Lucknow and MBA from ICFAI, Hyderabad. Richa Khandelwal
adds a fresh dimension to the management competencies at B.L. Agro. Among her
many contributions to the organization is her vision to take B.L. Agro to the
highest
national
and
international
level.
With path-breaking ideas, Richa Khandelwal has played a key role in further
strengthening the Bail Kolhu and other B.L. Agro brands and has led its expansion
into Delhi NCR and other newer territories with outstanding success. In a short
span of time, she has turned Bail Kolhu into a household name in Delhi that has
already
become
the
largest
selling
mustard
oil
in
certain
regions.
Always a forward looking person, Richa Khandelwal has helped the organization
get into an overdrive with her astute marketing strategies and innovative
techniques.
Growth so Far
Having started as a mustard trading house in 1958, B.L. Agro has come a long way
today. During the course of its journey, 1999 proved to be a landmark year which
transformed the business house from a commodity trading organization to an
FMCG company. The year witnessed the birth of B.L. Agro Oils as a registered
company and also marked its advent into quality control, packaging and marketing
of consumer packs of their flagship brand - Bail Kolhu Kachchi Ghani Mustard
Oil. Achieving an astonishing turnover of Rs. 60 crores in the first year itself, the
company has not looked back since.
Expansion and up-gradation has been a continuous process for B.L. Agro. The
marketers of a single mustard oil brand subsequently started rolling out multiple
varieties of mustard oil - thus catering to a much wider consumer base. As the
Later, the company took another stride when being a player in the lone mustard oil
segment, B.L. Agro diversified into Refined Soybean oil and then further to
various blended edible oils. In 2006, B.L. Agro achieved yet another milestone
when it established its own state-of-the-art Refinery.
Moreover what has brought laurels to B.L. Agro and awarded it a leadership
position is the company's ability to anticipate and adopt to Market Demand Shifts
resulting from either consumer Living Pattern Shifts or any other reason. At B.L.
Agro, change has been one of the most consistent processes. Be it technological
capabilities, be it the strength of human minds or be it the collective efficiencies,
B.L. Agro has always anticipated the changing environment and empowered itself
for the same.
The most important success driver at B.L. Agro is its ability to offer Consistency
Strength
The processes and facilities at the B.L. Agro plant match the highest standards
The Double Filter Process for Mustard Oil ensures that only the purest product is
dispatched from the B.L. Agro plant. The Refining is undertaken by Chemical
Refining process through which flows out the purest form of cooking oil that beats
the best known brands on transparency tests. Moreover, the oil is processed using
the Nitrogen Blanketing process that reduces the loss of nutritional values and
ensures Maximum Nutrition Retention (MNR) in the Refined Oils.
B.L. Agro Oils Ltd. is also one of the selected oil players in the country that have
been granted the Blending License thus enabling it to further expand its product
portfolio. With the vast possibilities in Blending, the company is now in a position
to develop many new products and cater to the evolving consumer needs.
Whatever the product and whatever be the process, at B.L. Agro the Purity &
Hygiene factor is always the topmost priority. At its technologically advanced
refinery plant, all processes are designed to be automated. Right from the unloading of the crude oil tankers to the filling and packaging of oil in various packsizes, the product remains untouched by human hand.
As a result the established Edible Oil Brands of B.L. Agro are today enjoying
Market Leadership in a vast market and region. The unique taste preference
developed by the company's products ensure an unflinching consumer loyalty that
in turn results in the consistent demand for the company.
The company has secured sources for supply of crude oil. The identification of
multiple regions ensures that supplies to B.L. Agro are not affected by climatic
adversities or any other form of agricultural contingencies.
One of the unique strengths of B.L. Agro is that the company even has its own
facilities for manufacturing of packaging materials used for its products. This
results not just in controlling the costs and enhancing value but also in maintaining
the product purity to the last possible level.
The company has an Excellent Track Record With the Management experience
of 50 years, B.L. Agro has displayed a consistent and exemplary growth right since
its inception.
B.L. Agro Oils Ltd. possesses India's largest mustard oil packaging facilities.
In-house QC Lab Best equipped & biggest in UP. The company has an in-house
Quality Control Laboratory with a Gas Chromatography that ensures purity, ideal
blends and PFA certified quality of all B.L. Agro products.
The company's lab is the biggest and best equipped in the entire state of Uttar
Pradesh.
To further complement its efforts and enhance its performance the company has
established Enterprise Resource Planning (ERP) systems and has obtained ISO
9001:2000, ISO 14002:2004 and HACCP certifications.
9% in rural areas.
The edible oil sector in India is largely unorganized with only a few organized
players.
Edible oil is sold in the country either in consumer packs (less than 5 lt pack sizes),
bulk packs (15 kg/ lt) or as loose oil in tankers or barrels.
Growth Opportunities
Emergence of branded edible oil as a high growth segment in Indian FMCG
industry.
With a huge proportion of total Indian households still not using branded oils but
displaying continuous shift in their using pattern - from loose unbranded oils to
packed branded oils, the category of branded edible oils has emerged as a high
growth segment in the Indian FMCG industry.
With an excellent record of adapting to the dynamic trends, B.L. Agro Oils Ltd. is
well positioned and preparing itself to play an important role in facilitating this
transition in consumer behavior.
Expansion in geographic reach and newer markets - The company has already
extended its distribution network covering almost entire North India and is now
poised to further expand in newer markets.
To meet the challenges of growing demands, B.L. Agro is preparing for capacity
enhancement and expansion of manufacturing capabilities.
The company has an ambitious plan for setting up an Integrated Oil Complex for
which it has already identified the locations. With comprehensive facilities
available within this complex, the company will be able to provide integrated
solutions and enhance its competitive pricing power.
In addition to the existing facilities, the proposed complex will include Solvent
Extraction Plant, Rice Bran & Sunflower Refinery and Mustard Crushing
Facilities.
To make its procurement processes smooth and cost effective B.L. Agro oils is
also contemplating setting up of Rack Facilities connecting its Oil Complex to
various Port.
Increase in brand power B.L. Agro Oils Ltd. has planned widespread
promotional and consumer connect campaigns to achieve an increase in its brand
power.
The company is working to expand its product and brand portfolio through
extension of the existing lines as well as through diversification into other edible
food items.
Through ensuring a substantial market share in the mustard oil as well as other
segments, B.L. Agro aims to obtain better pricing power.
Corporate Social Responsibility
Mustard
OilThe
Healthiest
One
HIERARCHY OF B.L.AGRO
Bail Kolhu is a clear market leader in most of its distribution territories and
commands almost monopolistic leadership position in many of the markets. Bail
Kolhu also enjoys a very high level of brand recall and brand loyalty amongst a
vast consumer base.
Mohan Dhara
Mohan Dhara is a well-accepted brand in the Refined Soyabean Oil segment.
Balance Lite
this is a fast growing brand that has facilitated the advent of B.L. Agro in the
Refined Vegetable Oil segment.
Aviral Dhara
Aviral Dhara is a multi-product brand of Mustard Oil, Palmolein Oil, and
Vegetable Oils. Having gained instant acceptance in the market, the brand is on a
steady growth chart.
NewProductDevelopment
In its quest to further expand its operations and reach for larger customer base,
B.L. Agro is in the process of developing ambitious new products. Nourish Delite
soon
to
be
launched
multi-product
National
Food
brand.
the
image
as
well
as
scale
of
company's
operations.
First product to be offered under this brand will be Premium Soyabean oil followed
by Premium Mustard Oil. The line will be further expanded to multiple food
products that will even extend beyond edible oils and include products like Atta,
Besan, Pulses on one hand and Packaged Drinking Water on the other. At B.L.
Agro, the vision is to make Nourish Delite India's biggest and most trusted Food
Brand and the company is planning and preparing to make this dream a reality.
Research Methodology:
My project report is secondary data base so the secondary data is collect on the
basis of requirement, convenience and availability of data as well as the reliability
of data. The sources through which the data is collected such asNewspaper, Internet, Balance sheets and some other sources of the company.
collection methods.
In the project I am collecting the data from various website through internet
because my project based on secondary information which is already available
somewhere.
Research methodology may be treated as the heart of the projects. Without a proper
and well organized plan it is impossible to complete the projects and draw
conclusive and prepare result.
OBJECTIVE OF STUDY
Analysis and
Interpretations
operational and managerial function through there are other basic function also like
production, marketing etc.
The industrial development of the last 60yrs or so has made finance and financial
management an indispensable part of business management.
A firms success and even survival, its ability and willingness to maintain
production and to invest in fixed or working capital are to a very considerable
extent determined by its financial policies, both past and present. In fact the
financial manger is now being placed at central focal point of modern corporate
organization due to organizational changes and revolutionary changes in financial
management.
Financial management is viewed properly viewed as an integral part of overall
management rather than as a staff specialty concerned with production, marketing
and other functions with in an enterprise wherever decisions are made about the
acquisition or distribution of asset.
It is often said that now a days, financial management watches and cases various
development activities liquidity and profitability of the firm.
Few activities to be cased for:
High cost of financial the risky investment due to capital-intensive
environment.
RATIOS ANAYLSIS
Ratio analysis is a widely used tool of financial analysis. It may be defined as the
systematic use of ratio to interpret the financial statement so that the strengths &
weaknesses of the firm as well as historical performance and current financial
condition can be determined. Here, the term ratio refers to the numerical or
quantitative relationship between two items/ variables, which are connected with
each other in some manner. Ratio analysis makes the related information
comparable.
Ratio may be expressed in either of the following ways:
In proportion: - in this form the amounts of the two items are being
expressed in a common denominator.
E.g.- current ratio as 2:1
= 11.108
= 395052176.04/3540722900
= 11.157
Operating profit
income
(Year 2010-2011)
8512212.00
= 467928770.37
(Year 2009-2010)
586912.00
= 395052176.04
Gross profit ratio Gross profit ratio measures the relationship of gross
profit to net sales is usually represented as a percentage. It is calculated as:
Net profit ratio: Net profit ratio is also called net profit to sales ratio (profit
margin). Profit margin is indicative of the managements ability to operate
the business with sufficient success not only to recover from the revenues of
the period, the cost of merchandise or services, the expenses of operating the
business and the cost of borrowed funds, but also to leave a margin of
reasonable compensation to the owners for providing their capital at risk.
Higher the ratio of net operating profit to sales better is the operational
efficiency of the concern.
= 969095600.45
= 1329257685.72
(Year 2009-2010)
(Year 2010-2011)
= 200520420.06
(Year 2009-2010)
= 76614526 + 47318871
= 123933397
6. Profit After tax to sales The ratio expressed the relationship between
profits
After tax and sales.
=2.163
Activity Ratio
Stock turnover ratio: stock turnover is also known as inventory ratio
merchandise turnover ratio or stock velocity ratio. This ratio measures the
number of times the stock turns, flows or rotates in an accounting period
compared to the sales effected during the that period. It indicates the
frequency of inventory replacement, i.e. the number of times the inventory
has been sold and replaced during the given period of time.
cash basis. Debtors are expected to be converted into cash over a short
period and thus, included in current assets. Financial analysis employee two
ratios to judge the quality or liquidity of debtors: Debtors turnover and
average collection period. It measures the number of times the receivable
rotate in a year in terms of sales.
Debtors turnover ratio = sales / average receivable
(Year 2010-2011)
= 4212526565.03/98300928.1105
= 42.853
146364114.69
= 3.169 times
(Year 2009-2010) = 3540722900 / 973913721
= 3.635 times
concern. Its the ratio between costs of sales and currents assets.
Current assets turnover = sales / current asset
(Year 2010-2011) = 4212526565.03/863953120.61
= 4.875 times
(Year 2009-2010)
= 3540722900/617977315
= 5.729 times
II. Fixed assets turnover ratio this ratio assumes added significance in the case
of manufacturing concern an increase in this ratio is the indicator of efficiency in
work-performance and decrease in this ratio speaks of unwise and improper
investment in fixed assets.
= 9.335 times
(Year 2009-2010)
= 3540722900/351748239
= 10.066 times
Financial ratio
Currents Ratio- The ratio of current assets to current liability is called
current ratio. This ratio is an indicator of the firms commitment to meet its
short-term liabilities. Current assets include cash and other assets convertible
into cash during the operating cycle of the business. Current liabilities mean
liabilities payable within a years time. An idle current ratio is 2:1, the ratio
of 2 is considered as a safe margin of solvency. A very high current ratio
would indicate the less efficient use of funds while a poor current ratio is a
danger signal to the management.
=3.125: 1
98797333.37
= 863953120.61
(Year 2009-2010) = 231658175 + 292728229 +16220352 + 77370559
= 6617977315
= 360162085.27
(Year 2009-2010) = 68151089+101543687 +28010241
= 197705017
Quick ratio This ratio is also called acid test ratio and liquidity ratio.
This ratio is ascertained by comparing the liquid assets to current liability.
The idle ratio is 1. This ratio is also an indicator of short-term solvency of
the company. A comparison of current ratio to quick ratio will indicate the
inventory hold-ups. For example, if two units have same current ratio but
different liquidity ratio, it indicates over stocking by the concern having low
liquidity ratio as compared to the concern, which has a higher liquidity ratio.
Cash ratio This is the ratio between cash and balances to current liabilities.
As such
Cash ratio = Cash + bank / current liabilities
(Year 2010-2011) = 9454306.00 + 8679.67/360162085.27
= 9462985.67/360162085.27
= 0.026: 1
(Year 2009-2010) = 16220352/197705017
=0.082:1
Solvency ratio This ratio highlights upon the long-term solvency of the
concerned and is ascertained by the formula
Solvency ratio = Total assets / Total liabilities
(Year 2010-2011) = 1329257685.72/979021639.01
= 1.358
Debt equity ratio - The debt equity ratio is determined to ascertain the
soundness of long-term financial policies of the company. It is also known as
external and internal equity ratio. This ratio establishes the relationship
between the internal equities and external equities. If this ratio is 1:1, the
long-term financial position of any business concern is considered
satisfactory. If this ratio is lower than 1:1, it means that outside liabilities are
lower than shareholders fund and in this case financial position will be
considered more good and satisfactory.
a)Table form
b)Graphical
Profitability ratio.
Operating profit ratio
Operating ratio
Gross profit ratio
Net profit ratio
Return on capital employed
Profit After tax to sales
2009-2010
11.16%
0.95%
8.63%
1.41%
15.97%
2.16%
2010-2011
11.11%
0.95%
8.40%
2.27%
20.69%
3.03%
2009Activity Ratio
Stock turnover ratio
Debtors turnover ratio
Working capital turnover ratio
Capital turnover ratio
Assets turnover ratio
I. Current assets turnover ratio
II. Fixed assets turnover ratio
2010
11.516
24.191
1.104
4.561
3.635
5.729
10.066
2010-2011
9.759
42.853
7.659
4.346
3.169
4.875
9.335
Financial ratio
Currents Ratio
Quick ratio
Cash ratio
Solvency ratio
Debt equity ratio
2009-2010
3.125
1.954
0.082
1.345
1.881
2010-2011
2.398
0.846
0.026
1.358
1.837
Based on the above financial analysis it is clear that Quick ratio of B.L. Agro
oils ltd is more than 1 i.e.1.594 in 2009-2010 and less than in.846 in 20102011.
Debt-equity ratio of B.L. Agro oils ltd is very less which means that B.L.
Agro oils ltd has not been aggressive in financial its growth with debt. The
company has better support from the shareholders.
In B.L. Agro oils ltd collection period is very quick i.e. 9days.
To make its procurement processes smooth and cost effective B.L. Agro oils
is also contemplating setting up of Rack Facilities connecting its Oil
Complex to various Port.
With the addition of Mustard Crushing Facilities, the company plans to
consolidate as
segment.
The company is working to expand its product and brand portfolio through
extension of the existing lines as well as through diversification into other
edible food items.
Through ensuring a substantial market share in the mustard oil as well as
other segments, B.L. Agro aims to obtain better pricing power.
B.L. Agro Oils Ltd. possesses India's largest mustard oil packaging facilities.
In-house QC Lab Best equipped & biggest in UP. The company has an inhouse Quality Control Laboratory with a Gas Chromatography that ensures
purity, ideal blends and PFA certified quality of all B.L. Agro products.
The company's lab is the biggest and best equipped in the entire state of
Uttar Pradesh.
The processes and facilities at the B.L. Agro plant match the highest
standards The Double Filter Process for Mustard Oil ensures that only the
purest product is dispatched from the B.L. Agro plant.
The Refining is undertaken by Chemical Refining process through which
flows out the purest form of cooking oil that beats the best known brands on
transparency tests. Moreover, the oil is processed using the Nitrogen
Blanketing process that reduces the loss of nutritional values and ensures
Maximum Nutrition Retention (MNR) in the Refined Oils.
BIBLIOGRAPHY
BOOKS/MAGAZINES:
Marketing Management by Philip Kotler
Marketing Management by Shrma,Kothari
Economic Times.
Data gathered from Broachers.
Business World
WEBSITES:
http://www.google.com
http://www.blagro.org