1.

INDUSTRY PROFILE
1.1 Food Industry Profile

The concept of food industries compromises of a set of commercial activities directed at the
processing, conversion till packaging of foodstuffs. The raw materials used are normally of
vegetable or animal foundation and produced with the aid of agriculture, farming, breeding and
fishing.

The food enterprise today has turn out to be extraordinarily varied, with manufacturing starting
from small, traditional, own family-run activities which are surprisingly labour extensive, to big,
capital-in depth and fairly mechanized commercial techniques. Extensively, the food industry
comprises a complex network of activities concerning the supply, consumption, and catering of
various food services and products across the world. Finished food and semi-finished ‘instant’
food packets are also a part of the such enterprise. India is the second one biggest food
manufacturer across worldwide and it has the capacity to emerge as the biggest producer of food
across the globe.

The food enterprise in India exported products worth around US$ 5.8 billion in 1998 whilst the
overall international food export happened at US$ 438 billion. This suggests that even though
India is one among the largest food producers within the world, it accounted for only 1.5% of the
international trade in food as in 1998.

The Indian food sector is poised for big boom, increasing its contribution to global food trade the
entire year. In India, the food industry has grown as a high-emerging and high-profitable region
because of its significant ability for value addition, mainly within the food processing industry.

The food industry, which was US$ 39.71 billion in 2017 is anticipated to grow at a Compounded
Annual Growth Rate (CAGR) of 11 % to US$65.4 billion by the time it reaches 2018. Food and
grocery account for around 31 according to cent of India’s intake basket.
Accounting for approximately 32% of the country’s total food market. The government of India
has taken initiative in the growth and development of the Food processing sector. The
authorities through the Ministry of Food Processing Industries (MoFPI) is taking all the possible
efforts to inspire investments within such industry. It has permitted proposals for partnerships,
joint ventures; collaborations of overseas, industry licenses and 100 % export orientated units.
Market Size

The Indian grocery market and food is considered as the world’s sixth largest, with retail
contributing 70 per cent of its sales. Food has additionally been one of the largest segments in
India's retail industry, which was valued at US$ 490 billion in 2013. Such retail market is
expected to reach Rs 61 lakh crore by 2020. The Indian food processing sector is 32 per cent of
the India’s total food market, one of the largest industrial in the whole country. It has fifth
ranking in terms of production, consumption, export and expected growth. It bring about13 per
cent of country’s exports, 6 per cent of total industrial funding and 14 per cent of manufacturing
Gross Domestic Product (GDP). Indian food service industry is expected to reach US$ 78 billion
by 2018.The Indian gourmet food market is growing at a Compound Annual Growth Rate
(CAGR) of 20 per cent and is currently valued at US$ 1.3 billion. India's organic food market is
anticipated to grow by three times by the time it reaches 2020.

Investments

The Indian food processing industry has acquired around US$ 6.82 billion worth of Foreign
Direct Investment (FDI) during the period 2000-2016, according to the information supplied by
the Department of Industrial Policies and Promotion (DIPP),
Given are the prime investments in this sector :

 , The Australia-based coffee chain named Di Bella, plans to investment around Rs 67

crore (US$ 10 million) for setting up around 20 new outlets in Mumbai, apart from
entering Delhi and Bangalore by 2017.
 ITC Limited plans to investment of Rs 800 crore to set up a world-class food processing
facility in Medak, a district located in Telangana. The firm has also initiated a plans to
give a try in the dairy processing market.
 The US- based private equity firm named KKR & Co LP, intended to make a investment
of about Rs 520 crore (US$ 77.38 million) in dairy company Kwality Ltd.

Government Initiatives
Vision Document- 2015 was initiated by the Ministry of Food Processing Industries with a
purpose to promote food processing sectors, improve the level of processing and exploit the
capability of both domestic and international market for processed food product merchandise.
 The Government of India has also loosened up foreign direct investment (FDI) norms for the
sector, allowing up to 100 per cent FDI in food product e-commerce through automatic route.
Few of the predominant initiatives held by the Government of India to enhance the food
processing sector in India are given below:

 The Food Safety and Standards Authority of India (FSSAI) has issued new policies to
address various issues over the entry of sub-standard food product, importing food
products, and simplifying the method by placing shelf-life norms and loosening up the
labelling policies and guidelines.
 The Ministry of Food Processing Industries has also initiated a scheme for Human
Resource Development (HRD) in the food processing industry.
 The Government of India has accredited the setting up of five Mega Food Parks in the
various states of India like Bihar, Maharashtra, Himachal Pradesh and Chhattisgarh. The
Government also proposed to set up 42 mega food parks across India in the coming three
to four years.
Food Industry: Major Players in India
 Nestle India Ltd.
 Kelloggs India
 Cadbury's India Ltd.
 MTR Foods Ltd.
 Hindustan Lever Ltd.
 Godrej Foods
 ITC-Agro
 Coca-Cola
 Britannia

Food Beverages and Food

The food products and beverages industry has modified drastically in a very short duration of time.
Beverages industry account to USD 230 million among the USD 65 billion food processing sector.
Now, people also use frozen foods, semi finished or ready to eat in some form.Nowadays, many
food products that previously could only be processed and prepared by hand can now be
completely processed by automated machine.
Papad making business in India
Papad is thin Indian wafer, which can be considered as a flat bread or cracker. It is typically
prepared from dried pulses. It can be either be eaten roasted or fried. There exist varieties of papad
flavors obtainable in the marketplace, that are prepared to suit the demand and need of each and
every consumers. Number of proportion and variety of spices and pulses vary from one area to
area depending upon taste and preferences of local people. There are certain varieties are popular
on a larger scale. The basic composition of the papad shift from a number of food ingredients such
as pulse flour, cereal flour, spice mixes, chemical mixes, soya flour, and diverse vegetable juices
for improving both nutritional and organoleptic qualities. It is such a adaptable food item with
considerable shelf life. It contains different varieties and flavors. There is lot of scope for
innovation and experimentation. These sort of papad making firm is often linked with
women empowerment but in perspective of expanding demand and availability of machinery, it has
now been developed in small-scale food industry.An entrepreneur with an idea of FMCG marketing
can come up with this business with moderate capital venture. It can also be started on a small
scale basis from their own home areas.
Uses:
 Few of the papad are oven-made papad, open-flame papad, fried and roasted one.
 Consumer can taste several flavors of papad of their choice, such as papad masala,chana
papad, urad dal, moong dal, asafoetida, black Pepper, red chilly, cumin, garlic, green
chilly, cardamom, cloves ,cinnamon, ginger and so on.
 Papad is a great accompaniment with mocktails and even with any meal of the day.
 Papad can be eaten as a starter or snack dish or served with soup. It can be enjoyed with
variety form of chutneys, sauces and pickles.
 One of the famous Rajasthani delicacy is papad ki sabji (papad curry), which is basically
made of papad only.

Various manufacturer, Exporter, wholesaler and Retailer of papad business

 Senor Pepito Tortilla Chips
 Patanjali Namkeen
 Haldiram Namkeen
 Lijjat Papad
 Lays Chips
 Haldiram Sev Namkeen
Few India Sellers of papad in India
 Ss Industries
 Sachchade Food Pvt. Ltd.
 Ravi Home Industries
 Nenimemi Foods Pvt. Ltd.
 Vayad Wafers
 Sanghavi Mahila Grah Udhyog
 Bhomiya Food Products
 Vijaya Spices
 Gcm International
 Svr Exports
 Girija Exports
1.2 THEORITICAL BACKROUND OF THE STUDY
1.2.1 Basics of Risk

Risk refers to the combination of probability of events and its impacts that constitute
opportunities to success or threats to loss. It is basically the likelihood of losing the amount we
put in. There is a rare occurrence that the amount put bears null risk.

“Risk is defined as a situation in which there exists a quantifiable dispersion in the possible
outcomes from any events. It can be classified in numbers of ways.”

CIMA Official Terminology, 2005

It play an essential role to organization. Business must identify, assess, evaluate, control and
report various sort of risk for better decision making.

Understanding Risk

It is the likelihood or chances of loosing amount we put in. It is basically uncertain future
occasion which could hamper the accomplishments of firm’s strategic, operational and financial
objectives.

Risk is of prime significance to an organization. Business must show a drive to identify, evaluate
assess, manage and report such kind of risks for better external decision making. Planning in
prior for probable risks can more likely secure a firm in the long period. It can be perceived in
various ways.
  Risk as threat or hazard: It is fundamentally the negative event to the entity. Management
of such risk in this context shows use of various management procedures and techniques
to diminish negative effect of such events.

 Risk as uncertainty: This kind of risk incorporates distribution of all possible result or
outcomes (both positive and negative). Managing risk in such context refers to decrease
in the fluctuation among anticipated and actual genuine outcomes.

 Risk as opportunity: This kind of risk can considered as a wellspring or source of

opportunity to an organization.

Risk tolerance

Risk
Risk taking
capacity

1.2.2 Risk tolerance and risk taking capacity

Risk tolerance depicts function of an individual’s actual ability to take risk. Various determinants
come under this which includes personality, objectives behind investing, age, time duration,
earning etc.

Personality:

It counts on the personality of an individual which allow them to invest on certain business
sector which otherwise is risky specially food sector. Food sector carries a huge opportunities
however along with the merit, It also has hazardous drawbacks. So, individual who prefers
playing it without uncertainty in most aspects of his lifetime, would not opt for such risk and
conversely.

Objectives behind investing in such business:

Establishing one’s aim before investing in food business is very vital. It can be seeking
maximum safety by choosing less risky business area only for sake of survival or gaining surplus
amount in a long run by choosing substantially risky business which could potentially give a
better income. It is very important to understand the goal or intention before stepping in.
Intention at times is greatly influence by maturity level. It is of great importance to take care of
risk which can hamper the business by planning in prior.

Age:

Creating wealth demands both, money and time. Age play a significant role that affects their
investment decision. There is always a better scope for those who are determine to hold longer
on their input in business specially food sector as they have a better tendency to earn more and
at the same time lower their risk with due time. The best example for this would be KFC which
first opened its franchise in Utah in 1952. Everyday KFC welcomes 8 million people through its
doors in the US alone. Today KFC’s determination to hold longer has not only lowered the risk
but also increase the degree of revenue.

1.2.3 Classification of Risk

 Operational or business: It refers to the activities which is carried out within the entity,
arising from structure, process and people.
 Country: It is connected to dealing transaction with, or stocking assets in a explicit
country. Risk involve here are often political or economic from regulatory instability. It is
probably caused by overseas taxation or currency instability.
 Environment: Risk involve here may be political, socio-cultural, technological,
environmental or legal.
 Financial: Relate to financial operations of the firm which incorporates the following:
1. Credit Risk: A loss might occur from failure to perform in lines with the terms of
contract by another party. It is one of the key risks that arise in food sector which
needs corrective measures and planning.
2. Currency Risk: The worth of a financial instrument could vary due to alterative in
foreign rates. It arises once the products are exported to different countries and it
causes one of the predominant confusion.
3. Risk related Interest rate: Changes in interest rate can affect the financial well
being of any firm.
4. Funding or liquidity risk: A firm might face hassle in raising funds to fullfill
financial commitments.
 Reputational Risk: This is often one in all the key risk that food business faces in the
recent times. It essentially harms the firm’s reputation as a result of not covering the other
 risks including quality assurance or contamination. Such risk can hamper to such a extend
that at time the firm might even has to liquidate the business.
 Strategy Risk: These includes risk arising out of its strategy and cause the greatest threat
to the accomplishment of such strategy. At times the firm’s strategy back fires and cause
major damage. So, it is essential to take a proper care of plans taking into account both
the merits and demerits.
 Market-related risk: These includes risk wherein the value of the fund or investment
decreases due to changes in market factors such as Inflation, commodity risk and so on.

 Consumer-related risk: It refers to the probable risk found in all consumer oriented
products, such product not meeting quality standards will pass undetected and enterthe
consumer market.

 Physical risk of nature: It refers to risks due to extreme climatic and meteorological
condition such as floods, earthquakes etc.

1.2.4 Risk in food Industry

Every business is exposed to risk in a daily basis. In a food sector, there arises an endless list of
things that hampers productivity whether it’s internal or external event of a firm. Few risk even
hampers the business’s survival. In a food industry, risk management is of core importance as
any missteps can impact more than just the productivity issues.
Supply chain risk:
When we compare to other industry, food sector is particularly reliant on its suppliers. However,
there is a long list of things that can interrupt supply delivery such as natural disaster, an internal
issue with the supplier, supplier’s demand for commission. Leaders can take variety of ways to
addressing this sector risk, from making coverage with business information to varying suppliers
to avoid too much dependency on a single supplier.
Food health safety risk:
One of the major risks associated to food industry is health. There are certain activities which
need to be planned such as food product need to be stored in certain temperature, expiry dates
needs to be monitored and the list goes on. Leaders in such industry can address this particular
risk by implementing better internal procedures by monitoring inventory in a timely basis.
There exist various major scenarios that can cripple a food production business and the ways to
prevent them are quality assurance/ control, fire control, contamination and so on.
According to CPA Australia’s Risk Management Guide for small to medium businesses, solid
risk management policies can impact in a number of merits which includes:
 A decrease in insurance premiums
 A reduction in cash/stock

 A reduction in business down time

1.2.5 Concept of Risk Management

Risk management was originally considered a different piece of risk analysis. However, Risk
analysis specialist now understands that risk assessment and risk management overlaps. Risk
management refers to choosing the best alternatives to deduct the amount of risk whereas risk
assessment involves identification, analysis and evaluation of risk.

The main purpose of food safety risk management is to protect public health. This has to be done
by controlling risks to the maximum level. Whereas impact of assessment of risk allow to decide
to how to manage such unique risk.

Risk management

Risk management refers to the identification, assessing and prioritization of various risks
observed by coordination and application of economically usage of resources to reduce, screen
and control the possibility of unfortunate events while also maximization of probable
opportunities.

A high risk enterprise is not always one which has to be prevented by various investors as
invariably high risk sector offer huge opportunities for rapid returns on the funding. But it is also
important to carefully research the investment and the weightage of risk of the underlying
venture. A method of continuously monitoring and evaluating an investment and the underlying
risk is called Risk management.

The process of dealing with such risk is based on the charater analyses of three fundamental
activities, The three activities are:

 Discovering the root from which a probable risk arise or identification of risk.

 Evaluation of such risk on a firm or measurement of such risk.

  Management and control of such risk by choosing the most efficient techniques to deal
with such risk.
Steps Of Risk management
 Evaluation of risk
 Determining the course of action
 Planning
 Monitor
 Review
 Document all actions.
1.2.6 Risk Management Framework

Elements of Risk Management in food sector

A. Risk Evaluation
 Identifying of probable risk such as food safety or other threats
 Establish risk profile
 Ranking the hazard for assessment and prioritization
 Establishment of risk assessment policy and carrying risk assessment result
B. Risk management option assessment
 Identification of available management option
 Selection of suitable management option
 Selection of final management decision
C. Implementation of management decision
 D. Monitoring and review
 Assessment of effectiveness of choosen measures taken
 Review risk assessment
The result of the risk evaluation process should be coordinated with the evaluation of available
risk management options in order to reach a decision on management of the risk. In reaching at
such decision, health and food safety protection should always be the primary concern, with
various other factors such as cost of economic, merits, technical feasibility, perceptions of taken
risk, etc. whichever is appropriate. Implementation of the various decision of management
should be carried out by monitoring both the effectiveness of the control measure and its
consequences on risk to the exposed citizen population, to make sure that the food safety goal is
being accomplish.
1.2.7 Structure of risk analysis

Risk Assessment -
-Hazard Identification
- Hazard Charaterisation
-Exposure Assessment
-Risk characterization

Risk Management
-Risk Evaluation
-Option Assessment
Risk Communication
-Option Implementation
-Monitoring & Review

1.2.8 VARIOUS PRINCIPLES OF FOOD SAFETY RISK MANAGEMENT

Principle 1: Risk management should always carry a structured approach. The various structured
approach to such management are Evaluation, Risk Management Assessment, Implementation of
Managerial Decision, and Monitoring and Review.
Principle 2: The primary consideration in decisions on acceptable levels of risk must be
protecting of human health .
Principle 3: Decisions on Risk management and practices must be transparent to all the genuine
parties involved.
Principle 4: Decisions on risk management should take into account the uncertainty in the result
of the risk assessment. The risk estimate should always try to include all possible numerical
amount of uncertainty, and this must be conveyed to risk managers in a transparent
understandable form so that the full implications of the range of uncertainty can be considered in
decision-making process.
Principle 5: Risk management ought to include precise, interactive communication with
consumers and other interested parties in all areas of the process. On-going reciprocal
communication among all interested parties is a significant part of the risk management process.
Principle 6: Risk management must be a continuing process that takes into consideration all
newly generated records in the evaluating and reviewing of risk management decisions.
Monitoring and other activities will likely be necessary to carry out the review efficiently.

1.2.9 Food business risk classification

The Framework involves a set of decision trees. Such approach in decision trees refers to
the nature of probable risk considering both inherent risk (absence of existing control) and
when there is reliability of existing risk management actions. The outcome from using such
a framework is classification of food sectors into one of four classifications, from the
highest risk category -Priority 1 (P1) through P2 and P3 to the lowest risk category.

P1

P2

P3

P4

Priority 1 and Priority 2

This classification refers to business sectors that will generally handle foods that involves
pathogenic micro-organisms and where pathogens are present or could be present. The handling
of such food involves at least one control action ( such as temperature) to ensure safety of the
food. P1 are characterized by known risk-increasing factors such as inadequate temperature
control. Example of P1 is fruit and vegetables. Whereas example of P2 is fruit juice,
pasteurization processing.
Priority 3
The classification refers to sectors that handle only “low risk” to “medium risk” foods. A
medium risk food that may involve harmful natural toxins or chemicals. Example of this is stable
Fruit juice, spices and tea.
Priority 4
This classification refers to business sectors that usually handle only “low risk” foods, i.e. those
that are unlikely to have pathogenic organisms and will not support their growth, and will not
introduce microbial, physical or chemical hazards to the foods they sell or handle.

1.2.10 Various Risk related to food frauds and its impacts on food safety
Food fraud or Economically Motivated Adulteration (EMA) refers to the sales of product related
to food that are not up to recognized standards in order to generate financial gain.
It can be showed in a range of various forms. Food safety and quality states that it includes “the
adding of foreign substances to such food, diluting it with water or intentional mislabeling of
food products”.
The impact of food fraud on food safety
In a general terms, food fraud impacts in reduction in quality rather than the safety issue.
However, there are cases where such alteration cause serious health hazards.
One of the reality based world example Dairy product in China - After a year in 2008, Chines
milk scandal was major food safety incident. Milk and infant formula was adultrated with
melanine which affected 300,000 people including babies.

1.2.11 Prevention of such Risk

In order to prevent such cases of food frauds, following measures needs to be implemented:
 Improving supplier relation
 Effective auditing strategy
 Early detection or warning of adulteration
 Investment in real time analysis and implementation of new technology
 collaboration and information sharing between public and private interests
  Testing of products from the third –party vendors
Investing proactively in the sophisticated technology and creative innovation would aid to
mitigate risk of food frauds. It will also improve a safety measure related to food and better
consumer well being.
1.3 IMPORTANCE OF THE TOPIC
The conception of Risk Management is the way of handling with all the merits and threats
arising out from a firm process including value creation chain to eliminate or reduce risk
particularly in food industry. The core objective of such management in food industry is to
ensure ongoing existence of the firm. In general, this is the main objective of any firm however
when it comes to food sector, ensuring continuous flow of business is not quite a easy task. It
doesn’t mean to demolish the entire risk because such entrepreneurial activity always involves
risk. Rather the focus should be to understand whether the risk can be controlled or not. To cope
up with such a challenges, risk management must be one of the processes which is integrated
with other process.
Based on the objectives and task of risk management, there exist area which must be included in
the design of risk management: strategic risk management and operational risk management.
These two sections must be managed in an efficient manner in order to survive in uncertain risk
environment of business.
When it comes to food sector, it is significant to have a proper planning and management of risk.
Without a proper planning, such sector can suffer major financial losses. Risk planning for
coming potential risk early on can better protect such business in a long run

1.4 NEED OF THE STUDY THE TOPIC

In today’s uncertain environment, risk management capabilities are more critical, more
connected, more strategic and overall more valuable to an enterprise as they execute their
business plan. As a result, organizations are spending more effort and time advancing their risk
management capabilities as important as a business priority.
This project is conducted to study and understand the concept of risk management. It also aims
at understanding the significance and various categories of risk function.
2.REVIEW OF LITERATURE AND RESEARCH DESIGN

2.1 REVIEW OF LITERATURE AND GAPS

In this section, we try to provide an idea about the basics concepts of risk management based on
the liturature review. This includes a generic definition of risk, risks management and their
method.
The meaning of risk can be differ from one person to another depending on their point of views,
attitudes and experience what makes the study of risk more and more complex. Aven [34],
proposed a basic risk theory based on brief selected review that over the last 15-20 years and he
presented the evolution of risk concept in Oxford English Dictionary since 1679, we think that
definition followed the environment evolution. Veland and Ave [14], proposed the same based
classification of risk given by Aven [34] and they used theses definition to discuss how the risk
perspectives influence the risk communication between the decision-makers, the risk analysts,
experts and lay people.
Risk is the probability that an event or action may adversely affect the organization [37]. For
Mazouni [25], the risk is an intrinsic property of any decision, it is measured by a combination of
several factors (severity, occurrence, exposure to, etc.), although it is generally limited to two
factors: severity and frequency of occurrence of a potentially damaging accidents that
incorporate some exposure factors.
In the BS OHSAS 18001 (British Standard Occupational Health and Safety Assessment Series),
the risk is a combination of the likelihood of an occurrence of a hazardous event or exposures to
danger and the severity that may be caused by the event or exposure.
There are several risks that can be divided into different types according to how its realization
will have impacts on the activity of organization and its environment. For example and according
to Harland et al [6], risk can be divided on: − Strategic risk: affects business strategy
implementation
Operations risk: affects a firm’s internal ability to produce and supply goods/services. − Supply
risk: adversely affects inward flow of any type of resource to enable operations to take place. −
Customer risk: affects likelihood of customers placing orders, grouped with factors such as
product obsolescence in product/market risk. − Asset impairment risk: reduces utilization of an
asset and can arise when the ability of the asset to generate income is reduced. − Competitive
risk: affects a firm’s ability to differentiate its products/services from its competitors. −
Reputation risk: erodes value of whole business due to loss of confidence. − Financial risk:
exposes a firm to potential loss through changes in financial markets, can also occur when
specific debtors defaults. − Fiscal risk: arises through changes in taxation. − Regulatory risk:
exposes the firm with changes in regulations affecting the firm’s business such as environmental
regulation.
Risk management refers to strategies, methods and supporting tools to identify and control risk
to an acceptable level [31].
The risk management process is executed in four steps [10, 23, 25]: − Risk identification: Risk
assessment: Risk management: Risk monitoring.
So we can consider the risk management such as a systematic application of management
policies, procedures and practices to assess and manage risks. In the literature review, there are
several methodologies for the realization of these steps depending on it is a proactive strategy
(i.e. predict risks and implement measures to prevent undesirable effects) or reactive strategy
(i.e. following the occurrence of risks).
2.2STATEMENT OF PROBLEM
To cope up with more complex and uncertain business environment, firm are elevating the role
of risk management and integrating it into their corporate strategies. In an increasingly volatile
and uncertain marketplace, the high-performing companies must strengthen their risk
governance, upgrade risk analytics and incorporate advanced risk reporting in order to survive.
When it comes to food industry, risk management play a significant role as food sector is
exposed to risk on a daily basis. Negligence of such risk can not only hamper the firm’s revenue
but can even result in liquidation of a firm. Nowadays, risk is rapidly moving out of the back
office, and management must balance the need to create value with the need to protect
shareholders. As a result, companies must break down organizational silos and integrate risk
management across the enterprise in order to succeed. Organizations recognize that an effective
risk management function will most likely have a direct line to the top. This study concerned
with the risk involved in food and beverages industry This project also portray various
challenges that a food business tackle in a daily basis and how managing of such risks aid in
mitigating the problem that a firm face in a long run.
2.3 SCOPE OF THE STUDY
The scope of the study is to provide a insight into the concept of risk and the various method to
manage those risk. It also provide the insight of the customers and consumers preference towards
various risk involved and a solution to it. This survey considers two section of respondents for
survey i.e Consumers and Customers. A consumer is the person who purchases product/services
and actually uses the product whereas a customer can be a business entity, who usually purchases
it for the purpose of resale. The core difference between the two is consumer do not resale the
product but consume for their personal use. This study also focus on identifying the best
measure to mitigate such risk which in turn will result in organizational success and growth

2.4 OBJECTIVES OF STUDY

 To study the concept and analyze the importance of risk management in Food business.
 To understand and analyze the various categories of risk.
 To understand and outline various possibilities to mitigate risk.
 The primary goal of the management of risks associated with food is to protect public
health by controlling such risks as effectively as possible through the selection and
implementation of appropriate measures.
2.5 SAMPLING
The procedure adopted in this study is probability sampling, which is also called chance
sampling. Under this sampling design, every item of the frame has a equally chance of inclusion
in the sample. The sample size includes 60 respondents. It compromises of customers and
consumers.

SOURCES OF DATA

PRIMARY DATA
Primary data refers to the first hand information which will be collected through questionnaire
and through the respondents. As per the nature of the of my study I have collected primary
information from customers and consumers and also from the company’s employees.

SECONDARY DATA
The secondary data which already exists are collected from
 Company websites
 Journals
 Management books
2.6 TOOLS FOR DATA COLLECTION

For this study, mainly used tools are

 Questionnaire and Survey Method
  Charts
 Bar and pie diagram
 Observation
2.7 DATA ANALYSIS
Initially suitable data on the study is collected from various sources which includes both primary
and secondary data. After collecting the data, it is classified according to its nature to derive
meaningful information. The classified data is then tabulated by using tables. The researched
data is further analyzed using various charts and tables. Suitable interpretation is prepared on the
basis of analysis. The suitable suggestions are stated based on the findings. Finally conclusions
are derived for the overall project.

2.8 LIMITATION
 The project is restricted to limited number of consumer and customer in Bangalore city.
 In this study the sample size of respondents is 60.
 This study was undertaken in a limited days that is 45 days.
3.PROFILE OF SELECTED ORGANISATION AND RESPONDENTS

Nastawala food products and Beverages

About Us

Namaste!
Welcome to the world of Nastawala
The word “Nasta originally meant “Breakfast But in today’s usage, the term is frequently used to
also mean a snack. In many parts of India, the question have you eaten nasta is often asked
instead of how are you”? The reason is simple: In Indian culture, Good food is equated with
Good Health! Which brings us to Nastawala which supplies hygienic, delicious, conveniently-
packed food products. If you are a foodie willing o explore new tastes and textures or are simply
looking to reconnect with food you grew up with, Nastawala offers something for your
discerning palate.
Nastawala is a food products & beverages company based in Bangalore which supplies hygienic,
delicious, conveniently-packed foods products. We offers papads for 2 variants Moong special
papad and chana papad, which is mostly preferred by people from all parts of India and
considered to be a stable food. Nastawala is commited to helping you and your family recreate
the magic of the foods you grew up with. All our products are vegetarian and contain no
preservatives, colours or artificial flavors. We use finest ingredients. Our manufacturing facilities
are a state-of-art, so that the products are untouched by hands and packaged in ways that
preserve their taste and freshness.
For all those when you feel nostalgic about the crispy tasty papads your mother made and wish
you could eat them again, remembering there’s Nastawala.

OUR STRENGTHS
Our Papads are More Tasty, More Pure and More Hygienic as it is made from state-of-art
manufacturing facilities under the supervision. The packaging of the product is truly appealing
and attractive.
PRODUCTS AND SERVICES
1. Pioneers in the industry, we offer Makhana Flake from India.
Makhana or lotus seed ia an Asian water plant which is mainly cultivated for its edible seeds.
They are white colored and round in shape which make the resemble popcorn. It is a completely
nutritious and fully organic non- cereal food. Comparing with some dry some dry fruits like
almonds, walnut, cashew nuts and coconut, makhana can be considered superior in terms of
phenol content, sugar protein, ascordic acid etc. Makhana is considered as an easily digestible
food along with having good nutritional content. It has high medicinal benefits and has no side
effect. It is mostly used by Indian women during fasting (vrat).

Heath benefit of Makhana-

 Strengthen the heart and thus useful in cardiac protection
 Good for kidney
 Act as an anti-oxidant
 Very in nature and thus can be easily digested
 Improves Appetite
 Helps in Regulating Blood pressure
 Effective in treating insomnia
 For overcoming post natal weaknesses
2. Recipes
Pioneers in the industry, we offer Masala Papad, Papad Ki Sabji, Makhana Pulao, Makhana Raita
and Makhana Kheer from India.

Masala Papad

Papad ki sabji

Makhana Pulao

Makhana Raita

Makhana Kheer

3. Other products:
Offering you a complete choice of products which include Chana Papad, Moong Special Papad,
Makhana Flake, Masala Papad and Achar.

Chana Papad Moong Special

Makhana
Papad

Chana Papad- the uniqueness of the product depends heavily on its flavour embedded with
ingredients. Chana papad is prepared with the finest pulses, gram pulse flour, black gram pulse
flour, edible common salt, barilla (sazi), edible oil, sugar, citric acid, spices & condiments (red
chiili, ajwayan, asafoetida) . Chana papad is widely becoming a choice of papad for the papad
lovers across families.
Moong Special Papad- It is one of the best range in the Papad that is widely enjoyed and
preferred by consumers in many parts of the country. Prepared with ingredients like Green gram
pulse flour, Black gram pulse flour, Edible common salt, Barilla (Sazi), Black Pepper, Edible
Vegetable Oil and Asafoetida blesses it with a completely mouth watering taste and completes
your food

Product that Nastawala supplies:

 Masala papad
 Appalam
  Pickles
 Tea
 Mayonnaise
 Corn Flakes
 Fruit Crushes
Overview and Milestones of Nastawala

Nastawala is a Food Products and Beverages Firm, based in Bangalore which supplies hygienic,
delicious and conveniently-packed food products. Our premium range of products like varieties
of Masala Papads and Khakhras are rich in taste and its attractive packaging makes it a product
of choice in its category.
We are one of the preferred supplier for premium multi products retail brands like Reliance
Fresh, Bigbasket – B2C and B2B, Nilgiris Supermarkets, Al Adil (Dubai), Namdhari Fresh etc.
We are also strongly holding the premium hotels and Restaurants for our category of products
and in continuous practice to grow further.
Nastawala was founded in 2014, with 2 products supplying to 20 outlets in Bangalore. Since then
we have continuously put all efforts to grow geographically adding more products to our basket.
In 2015, we launched Khakhras (Gujarati snacks) for the retail segment partnering with
Supermarkets and online leading retail BigBasket.com. The same year, we also approached a
new market HORECA (Hotels, Restaurants and Catering) with our range of products and by
understanding the need of the market, we launched a new range of Papad (URAD PUNJABI
MASALA) in competition to Lizzat. The product was very well accepted as it was of good
quality, attracting packaging and cost efficient.
In 2016, we achieved a new milestone by starting export to one of the popular retail outlets in the
UAE market for Indian Foods – AL ADIL SUPERMARKETS. In Domestic Market, we
ventured into new market – Hyderabad with one of the leading hotel supplier supplying to all
premiums fine dining hotels and restaurants. We too partnered with Future Group – BigBazar
outlets for Nagpur and Chhattisgarh stores.
In 2017, we entered into new domestic markets in Andhra Pradesh – Vishakapatnam and
Vijayawada at hotel segments. We set up a new manufacturing unit of Appalam -South Indian
papad served with meals. The demand for this product is tremendous because of its mass
consumptions.
In 2018, we achieved another milestone by partnering with Reliance Retail India Pvt Ltd for all
Reliance Smart Stores in Bangalore and surroundings. We further targeted all leading hostels in
Bangalore to supply papads and other products. We were able to partner with 2 major players
1. Serenity hostels – student housing with Food for all Christ College and Reva College students
2. Jain hostels – student housing for all Jain Group of Institutions.
1n 2019, appointed by BigBasket B2B (HORECA) to supply Papads, Applam, Fryums, Pickles,
Mayonnaise, Jams, Sauces etc in bulk quantities to all Major locations like New Delhi, Mumbai,
Ahmedabad, Kolkata, Hyderabad, Bengaluru and Hyderabad. We have also partnered with
Reliance India Pvt Ltd for all the new smart stores in South India. We have also initiated
conversations with FLIPKART to sell papads and Khakhras online across India.

FACTSHEET- BASIC INFORMATION

Nature of Legal Status of

Company CEO
Business the firm
•Wholesaler •Sumeet Rungta •Sole
proprietorship

About Company CEO-Sumeet Rungta:

Sumeet Rungta is the Founder of Nastawala Food Products and Beverages. He is a post graduate
in Business Management from School of Business, Alliance Universtity, Bangalore. He started
his career in 2011 as a young partner for a Leadership and Sales Excellency company – Prajna
Asia Consultants LLP, Bangalore. Sumeet is a Sales, Marketing and a client relationship
prodigy. At Prajna, Sumeet was a Client Engagement head and had successfully sold Leadership
and Sales Excellency programs to companies like Volvo India, Bosch Ltd, Titan Industries, ING,
Praxair India, Aris Gloabl, ITC Infotech etc. Over the years at Prajna, he has worked with all
leading Coaches and Consultants with Global clients.
In 2014, Sumeet founded Nastawala with a vision to make it a most sought Food company in the
coming years with the faith in his idea and confidence in his sustainable effort. He single
handedly have approached all the retail customers in India and Abroad with his convincing
power and salesmanship, he closed the deal with them. He personally carries a well established
relationship with all the customers at Nastawala. He has a solid vision of becoming a market
leader in the Papad Business in the coming years target a revenue of 200 crores in the next 5
years.
 4.DATA ANALYSIS AND INTERPRETATION

Data analysis is done on two section: One among Customers and another among
Consumers

Table 4.1.1 Table showing Sex wise classification of respondents among consumers.

Gender No. of Percentage

Respondents
Male 19 47

Female 21 53

40

Analysis:
The above table showcase that the number of female consumer is more than male consumers
when we consider a total respondents of 40.
4.1.2 Graph showing gender wise classification of respondents among consumers.

Gender

47% Male

53% Female

INTERPRETAION

The above graph depicts the number of male and female proportion. It points us to the fact that
female consumer more in number (53%) when compared to male consumer (47%). However it
can also be pointed that difference is almost nearing to equal.
Table 4.1.2 Table showing the proportion of age group among consumers

Age No. of Percentage

Respondents
20-30 29 72

30-40 7 18

Above 40 4 10

Total 40

Analysis:
The above table showcases the age group among consumers. The number of respondents whose
age group is in between 20-30 are 29 with a percentage of 72.5%. Those between 30-40 are
7(10%) whereas the least amount of respondents are from an age group which crosses 40 with a
percentage of 5.7%.
4.1.2.1 Graph showing proportion of age group among consumers

Age

10%

18%

20-30
30-40
72% Above 40

INTERPRETAION

The above graph depicts the age group among the consumers. The percentage clearly depicts the
majority of respondents from age group of 20-30 are 29 with a percentage of 72.5% whereas the
least amount of respondents are from an age group who are above 40 age with a percentage of
5.7%. It also depicts that the majority of respondents with age group of 20-30 becomes a major
participants in such survey on risk assessment.
Table 4.1.3 Table showing the risks involved when a consumer buys a food product.

Response No. of Percentage

Respondents
Taste 6 15

Quality 18 45

Preservatives 8 20

Packaging 3 7.5

Price 2 5

Shelf life 3 7.5

Total 40

Analysis:
The above table showcase that the number of consumer’s perception towards risk factor when
they buy a food products. The table depicts that majority of the consumers take quality as risk
factor with a number of respondents as 18 (45%). In this survey, those opting preservatives as a
risk factor are 8. While 6 respondents consider taste as a one. Whereas both packaging and shelf
life constitute same number of respondents i.e. 3 (7.5% ). Least number of respondents consider
price as a risk factor with a percentage of 5%
4.1.3.1 Graph showing the risks involved when a consumer buys a food product.

Risk Factor

8% 15%
5%
7%
Taste
Quality
20% Preservatives
Packaging
45%
Pricing
Shelf Life

INTERPRETAION
The above graph depicts the consumer’s perception towards risk factor when they purchase a
product. 45% of the consumers rated quality as a risk factor when it comes to purchasing of a
food product. Whereas Pricing is considered as a least with a percentage of 5% when it comes to
risk factor. A total of 18 respondents out of 40 respondents doubt quality as a risk factor
and investigate thoroughly when they purchase a food product.
Table 4.1.4 Table showing the most preferred packed food product among consumers.

Response No. of Percentage

Respondents
Papad 3 7

Snacks 32 80

Pickles 3 8

Frozen Food 2 5

Total 40

Analysis:
The above table showcase that the number of most preferred packed food products among
consumers. 32respondents out of 40 prefer snacks (80% ) whereas frozen food is considered as a
least preferable one. The total number of respondents is 40.
4.1.4 Graph showing the most preferred packed food product among consumers.

Preferred packed food

5% 7%
8%

Papad
Snacks
Pickles
Frozen food

80%

INTERPRETAION

The above graph depicts the preferred packed food product among the consumers. Majority of
the consumers (80%) prefer snacks as a preferred packed food whereas the least preferred one is
frozen food with a percentage of 5%. It is a clear indication that snacks is considered as a easiest
means of packed food product as there is ready to eat whereas when it comes to frozen food, it
need to be cooked before consumption. It depicts consumer prefers convenient packed food
product.
Table 4.1.5 Table showing preference of brand in food product and beverages.

Response No. of Percentage

Respondents
Haldiram 30 75

Nastawala 2 5

Mothers 4 10

Iyers 3 7

Local 1 3

Total 40

Analysis:
The above table showcase the preference of certain brands when it comes to food and beverages
products. Out of total of 40 respondents, 30 respondents (75%) consider Haldiram as their
preferred brand. Whereas Only 2.5% out of the entire respondents prefer local brands.
4.1.2 Graph showing preference of brand in food product and beverages.

Preferred Brand

7% 3%
10%

5% Haldiram
Nastawala
Mothers
75% Iyers
Local

INTERPRETAION

The above graph depicts the most preferred brand in a food product and beverages. It points us to
the fact that most consumers prefer Haldiram as their preferred brand (75%) when compared to
local brand which constitute only 2.5 % of the entire sample population. It can be clearly pointed
out that most consumer go for branded food product rather than going for a local brand.
Table 4.1.6 Table showing the Awareness of risk when it comes to taste in food products
among consumers.

Response No. of Percentage

Respondents
Yes 28 70

No 4 10

May be 8 20

Total 40

Analysis:
The above table showcase the awareness of risk when it comes to taste in a food product. Out of
40 respondents, 28 (70%) of the them responded as ‘yes’ while 4 respondent responded saying
‘no’. The rest of the respondents (20%) stated ‘may be’ as their response. It depicts that majority
of them clearly has knowledge about underlying risk involved in taste of a food product.
4.1.6 Graph showing Awareness of risk when it comes to taste in food products among
consumers.

Awareness of risk in taste

20%

10%
Yes
No
70%
May be

INTERPRETAION

From the above data shows the number of respondents and their awareness of risk when it comes
to food products. Majority of the respondents (70%) believe that certain risk factor is present
when it comes to taste in a food product. While 8 of the consumers (20%) are not sure about the
presence of risk involved in the taste of food products. Only 10% disagreed to it.
As majority of the consumers agreed to the question, it can be assumed that necessary steps must
be taken on focusing on such risk
Table 4.1.7 Table showing the Awareness of risk when it comes to quality in food products
among consumers.

Response No. of Percentage

Respondents
Yes 27

No 3

May be 10

Total 40

Analysis:
The above table showcase the awareness of risk when it comes to quality in a food product. Out
of 40 respondents, 27 (%) of the them responded saying as ‘yes’ while 3 respondent responded
saying ‘no’. The rest of the respondents (%) were not about the same. It depicts that majority of
them clearly has knowledge about underlying risk involved in quality of food products..
4.1.7 Graph showing Awareness of risk when it comes to quality in food products among
consumers.

Awareness of Risk in quality in food

25%

8%
67%

Yes No May be

INTERPRETAION
67% respondents who took part in this study are well aware when it comes to quality in a food
product. Whereas 25% of the respondents were not sure about the presence of such risk. This
graph is a clear projection on how majority of the respondent hints on the impact of such risk as
well as the significance of handling the probable risk in the quality of such product.
Table 4.1.8 Table showing the Awareness of any other risk related to food products among
consumers.

Response No. of Percentage

Respondents
Yes 27 67

No 4 10

May be 9 23

Total 40

ANALYSIS:
The consumers were asked to respond whether they have encountered any other risk related to
food industry. 67% respondents which form the majority responded positively whereas 23% of
them were not sure. It depicts that majority of them clearly has knowledge about various other
risk related to food product.
4.1.8 Graph showing the Awareness of any other risk related to food products among
consumers.

AWARENESS OF ANY OTHER RISK RELATED TO FOOD

SECTOR
Yes No May be

23%

10%

67%

INTERPRETAION

67% respondents voted stating that they have encountered other risks related to food sector. 10%
of the respondents haven’t encountered any risk when it comes to food industry. While 23%
were not sure about it.
As huge number of respondents have encountered risk related to food product, it can be clearly
assumed that such sample population has faced various hassle and greatly emphasize on the
importance of risk management.
Table 4.1.9 Table showing the likelihood of risk assessment in a food product industry.

1 2 3 4 5
(Least Likely) (Most Likely)
No. of 0 1 11 16 12
respondents
Percentage 0 2.5 27.5 40 30

ANALYSIS:
The above table showcase the awareness of risk when it comes to quality in a food product. Out
of 40 respondents, 27 (%) of the them responded saying yes while 3 respondent responded
saying no. The rest of the respondents (%) stated may be as their response. It depicts that
majority of them clearly has knowledge about underlying risk involved in quality.
4.1.9 Graph showing Awareness of risk when it comes to quality in food products among
consumers.

Likelihood
18

16

14

12

10
Likelihood
8

0
1 Least Likely) 2 3 4 5 (Most Likely)

INTERPRETAION

The above graph showcase the awareness of risk when it comes to quality in a food product.
Majority of the respondents (67%) are well aware of the risk involved in the quality of food
products. 25% of the respondents gave response as may be. These number of respondents doesn’t
have much knowledge about risk when it comes to quality. It depicts that majority of them
clearly has knowledge about underlying risk involved in quality of food product.
How likely would you recommend risk assessment in a food product
industry?
Table 4.2.1 Table showing gender wise classification of respondents among customers.

Response No. of Percentage

Respondents
Male

Female

Total 20

ANALYSIS:

The above table showcase the awareness of risk when it comes to quality in a food product. Out
of 40 respondents, 27 (%) of the them responded saying yes while 3 respondent responded
saying no. The rest of the respondents (%) stated may be as their response. It depicts that
majority of them clearly has knowledge about underlying risk involved in quality.
4.2.2 Graph showing Awareness of risk when it comes to quality in food products among
consumers.

INTERPRETAION

The above graph showcase the awareness of risk when it comes to quality in a food product.
Majority of the respondents (67%) are well aware of the risk involved in the quality of food
products. 25% of the respondents gave response as may be. These number of respondents doesn’t
have much knowledge about risk when it comes to quality. It depicts that majority of them
clearly has knowledge about underlying risk involved in quality of food product.
Table 4.2.1 Table showing gender wise classification of respondents among customers.

What according to you is the most risked factor in Food Industry?

5.SUMMARY OF FINDINGS, CONCLUSIONS AND SUGGESTIONS

Summary of Findings

 From the study it is clear that Risk assessment is significant in a food product industry.
 It is impossible for a business to run with null risk specially when it comes to food sector
industry.
 There exist various measure to reduce or mitigate risk which require prior planning
 There exist various risk factor when it comes to taste, quality, packaging, pricing and
shelf life of a food products.
 Consumer prefer convenient mode of food product such as ready to eat snacks .
 Majority of the consumer consider that there is a existence of risk when it come to taste
of a food products.
 The study helps us to understand the concept of risk and risk management process.
 It also aid ways to mitigate such risk.
 It showcase various risk related to food fraud and various reality based examples.
 It also depict various principle of risk management.

Conclusions
Every organization specially food sector carries risk and it is essential to provide keen
importance when it comes to risk management of the firm. It is as important as any business
plan. Risk management aids a tremendous scope for the upliftment of any enterprise.

Suggestions

 Every enterprise must ensure tha risk management is a vital part of a business and must
be planned in prior to avoid any unpleasant circumstances in a firm.
 A firm must invest in risk management like any other project in a firm and should
establish a separate section for such plan to be carried out.