CHAPTER – 1

INTRODUCTION

INTRODUCTION ABOUT INTERNSHIP

An internship is a structured work experience related to a student’s major and /or career goal. It
is supervised by a professional in the field. It is an experience that is mutually agreed upon by the
student, organisation and faculty member.

The internship program gives the required knowledge, experience and skill sets in which to those
people who are looking out to explore their careers in the coming future times. In relatively
internship programs helps the students to experience the corporate world. Generally, an
internship consists of an exchange of services for experience between the student and an
organization.

Internship program is a 4 week based program to serve the twin objectives of better learning
skills and providing the most critical business insight and also to gain the high calibre which help
in the growth of daily basis from the beginning of a firm.

Internship program is done at RMM Food Products Pvt. Ltd., for the following topic

“ORGANIZATIONAL STUDY IN RMM Food Products” I found that RMM Products is having
very good marketing strategies in the market to attract the customers all over the world.
INDUSTRY PROFILE

The food industry is a complex, global collective of diverse businesses that supply much
of the food energy consumed by the world population. Only subsistence farmers, those who
survive on what they grow, can be considered outside of the scope of the modern food industry

The food services sector in India is expected to witness a 50 per cent increase in
investments in 2017 to about US$ 750 million, as food suppliers and retail companies plan to
scale up business and stay competitive by tapping the large potential of the domestic market. Of
the total investments of US$ 750 million in 2017, about US$ 165 million has gone into purely
front-end retail, such as fast moving consumer goods (FMCG), food and beverage firms.

Food Processing Industry

With a huge agriculture sector, abundant livestock, and cost competitiveness; India is fast
emerging as a sourcing hub of processed food. India's food processing sector covers fruit and
vegetables; spices; meat and poultry; milk and milk products, alcoholic beverages, fisheries,
plantation, grain processing and other consumer product groups such as confectionery,
chocolates and cocoa products, soya-based products, mineral water, high protein foods etc.

The food industry includes:

 Regulation: local, regional, national and international rules and regulations for food
production and sale, including food quality and food safety, and industry lobbying
activities.
 Education: academic, vocational, consultancy
 Research and development: food technology
 Financial services insurance, credit
 Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural
construction, etc.
 Agriculture: raising of crops and livestock, seafood
 Food processing: preparation of fresh products for market, manufacture of prepared food
products
  Marketing: promotion of generic products (e.g. milk board), new products, public
opinion, through advertising, packaging, public relations, etc.
 Wholesale and distribution: warehousing, transportation, logistics

Food and beverage contributes a big portion to the revenues of hotels in India. "This is as
much as 30-40 per cent in some five-star hotels, compared to 15-20 per cent internationally,"
says Dilip Puri, Managing Director of Starwood Hotels India.

According to a report titled 'Indian Non-Alcoholic Drinks Forecast to 2012' by research firm
RNCOS, the Indian non-alcoholic drinks market was estimated at around Rs 216 billion (US$
3.88 billion approximately) in 2008 and is forecasted to grow at a CAGR of around 15 per cent
during 2015-2017. The report covers numerous factors driving the growth of non-alcoholic
drinks market in India.

The report highlights that the highest growth will be seen in the fruit/ vegetable juice market,
which is estimated to grow at a CAGR of around 30 per cent in value terms during 2015-2017,
followed by the energy drinks segment at a CAGR of around 29 per cent during the same period.

Overview
Industry size
Processed food sales worldwide are approximately US$3.2 trillion (2014) In the U.S.,
consumers spend approximately US$1 trillion annually on food, or nearly 10 percent of the
Gross Domestic Product (GDP). Over 16.5 million people are employed in the food industry.
In the United Kingdom, the food industry is extensive. It employs well over half a million
people and has a turnover in excess of £70bn. It is the largest manufacturing sector in the UK
and represents around 15% of the total manufacturing sector in the UK. Around 13% of the
people working in manufacturing in the UK work in the food and drink industry

Agriculture
Agriculture is the process of producing food, feed, fiber and other desired products by
the cultivation of certain plants and the raising of domesticated animals (livestock). The practice
of agriculture is also known as "farming", while scientists, inventors and others devoted to
improving farming methods and implements are also said to be engaged in agriculture. More
people in the world are involved in agriculture as their primary economic activity than in any
other, yet it only accounts for twenty percent of the world's Gross Domestic Product (GDP).

Food processing

Food processing is the methods and techniques used to transform raw ingredients into
food for human consumption. Food processing takes clean, harvested or slaughtered and
butchered components and uses them to produce marketable food products. There are several
different ways in which food can be produced.

Wholesale and distribution

A vast global transportation network is required by the food industry in order to connect
its numerous parts. These include suppliers, manufacturers, warehousing, retailers and the end
consumers. There are also companies that add vitamins, minerals, and other necessary
requirements during processing to make up for those lost during preparation. Wholesale markets
for fresh food products have tended to decline in importance in OECD countries as well as in
Latin America and some Asian countries as a result of the growth of supermarkets, which
procure directly from farmers or through preferred suppliers, rather than going through markets.

The constant and uninterrupted flow of product from distribution centers to store
locations is a critical link in food industry operations. Distribution centers run more efficiently,
throughput can be increased, costs can be lowered, and manpower better utilized if the proper
steps are taken when setting up a material handling system in a warehouse.

Retail

With populations around the world concentrating in urban areas, food buying is
increasingly removed from all aspects of food production. This is a relatively recent
development, having taken place mainly over the last 50 years. The supermarket is the defining
retail element of the food industry, where tens of thousands of products are gathered in one
location, in continuous, year-round supply. Restaurants, Cafes, Bakeries and Mobile trucks are
also ways consumers can purchase food.
 Food preparation is another area where change in recent decades has been dramatic.
Today, two food industry sectors are in apparent competition for the retail food dollar. The
grocery industry sells fresh and largely raw products for consumers to use as ingredients in home
cooking. The food service industry by contrast offers prepared food, either as finished products,
or as partially prepared components for final "assembly".

Food industry technologies

Sophisticated technologies define modern food production. They include many areas.
Agricultural machinery, originally led by the tractor, has practically eliminated human labor in
many areas of production. Biotechnology is driving much change, in areas as diverse as
agrochemicals, plant breeding and food processing. Many other areas of technology are also
involved, to the point where it is hard to find an area that does not have a direct impact on the
food industry. Computer technology is also a central force, with computer networks and
specialized software providing the support infrastructure to allow global movement of the myriad
components involved.

Marketing

As consumers grow increasingly removed from food production, the role of product
creation, advertising, and publicity become the primary vehicles for information about food.
With processed food as the dominant category, marketers have almost infinite possibilities in
product creation.

Media & Marketing

A key tool for FMCG marketing managers targeting the supermarket industry includes
national titles like The Grocer in the U.K., Checkout in Ireland, Progressive Grocer in the U.S.,
and Private Label Europe for the entire of the European Union.it

Labour and education

Until the last 100 years, agriculture was labor intensive. Farming was a common
occupation. Food production flowed from millions of farms. Farmers, largely trained from
generation to generation, carried on the family business. That situation has changed dramatically.
In North America, over 50% of the population were farm families only a few decades ago; now,
that figure is around 1-2%, and about 80% of the population lives in cities. The food industry as
a complex whole requires an incredibly wide range of skills. Several hundred occupation types
exist within the food industry.

Research and development

Research in agricultural and food processing technologies happens in great part in

university research environments. Projects are often funded by companies from the food
industry. There is therefore a direct relationship between the academic and commercial sectors,
as far as scientific research

Key Players

The major players operating in the Indian food and beverages industry include Dabur India Ltd,
Godrej Industries Ltd, Hindustan Lever Ltd, Britannia Industries Ltd, ITC Ltd, Nestle` SA,
PepsiCo, Inc, Cadbury Schweppes PLC, Future Group, RPG Enterprise and Godrej Agrovet Ltd.

Prominent Food Companies

 Nestlé is the world's largest food and beverage company.

 PepsiCo is the largest U.S.-based food and beverage company.
 Unilever is an Anglo-Dutch company that owns many of the world's consumer product
brands in foods and beverages.
 Kraft is apparently the world's second largest food company, following its acquisition of
Cadbury in 2015.
 DuPont and Monsanto Company are the leading producers of pesticide, seeds, and other
farming products.
 Both Archer Daniels Midland and Cargill process grain into animal feed and a diverse
group of products. ADM also provides agricultural storage and transportation services,
while Cargill operates a finance wing.
  Bunge Limited is a global soybean exporter and is also involved in food processing, grain
trading, and fertilizer.
 Dole Food Company is the world's largest fruit company. Chiquita Brands International,
another U.S.-based fruit company, is the leading distributor of bananas in the United
States. Sunkist Growers, Incorporated is a U.S.-based grower's cooperative.
 JBS S.A. is the world’s largest processor and marketer of chicken, beef, and pork.
Smithfield Foods is the world's largest pork processor and hog producer.
 Sysco Corporation, mainly catering to North America, is one of the world's largest food
distributors.
 General Mills is the world's sixth biggest food manufacturing company.
 Grupo Bimbo is one of the most important baking companies in brand and trademark
positioning, sales, and production volume around the world.

Sources of Assistance for the Industry

This section provides links to financial programs and services offered by Agriculture and
Agri-Food Canada and other federal departments and organizations to which food and beverage
processors are eligible to apply. It also includes a link to the Canada Business Services for
Entrepreneurs site which provides single window access to business information including
Federal and Provincial financial assistance programs.

Food Statistics (Statistics Canada)

A publication containing information on food consumption, food prices and nutrition, as

well as data on the food industry, processing, employment, productivity and trade. Various
statistics are presented for the food industry and it's sub-industries, including definitions, number
of establishments, value of production, employments, GDP, trade, etc...

Beverage Manufacturing Statistics (Industry Canada)

North American Industry Classification System (NAICS) 2002 - Canada (Statistics

Canada)
This provides a description of the Classification System and, in particular, how the food and
beverage industries are defined and further subdivided within the Classification.

Food Manufacturing Statistics (Industry Canada)

Various statistics are presented for the beverage manufacturing industry and it's sub-
industries, including definitions, number of establishments, value of production, employments,
GDP, trade, etc...

Dairy Facts and Figures

This section provides detailed statistics related to dairy cattle improvement, quota
exchanges and prices, milk production at the farm, shipments to processors, dairy farming
revenue and expenses, processing, sales of fluid milk and cream, supply and disposition,
consumption of dairy products, and retail prices, index prices and dairy household expenditures
in Canada.

INDIAN FOOD INDUSTRY

India is the world's second largest producer of food next to China, and has the potential of
being the biggest with the food and agricultural sector. The total food production in India is
likely to double in the next ten years and there is an opportunity for large investments in food
and food processing technologies, skills and equipment, especially in areas of Canning, Dairy
and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo
Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry,
Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-
sectors of the food processing industry. Health food and health food supplements is another
rapidly rising segment of this industry which is gaining vast popularity amongst the health
conscious.

India is one of the worlds major food producers but accounts for less than 1.5 per cent of
international food trade. This indicates vast scope for both investors and exporters. Food exports
in 1998 stood at US $5.8 billion whereas the world total was US $438 billion. The Indian food
industries sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year
2000. The industry has the highest number of plants approved by the US Food and Drug
Administration (FDA) outside the USA.

India's food processing sector covers fruit and vegetables; meat and poultry; milk and
milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer
product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral
water, high protein foods etc. We cover an exhaustive database of an array of suppliers,
manufacturers, exporters and importers widely dealing in sectors like the -Food Industry, Dairy
processing, Indian beverage industry etc. We also cover sectors like dairy plants, canning,
bottling plants, packaging industries, process machinery etc.

The most promising sub-sectors includes -Soft-drink bottling, Confectionery

manufacture, Fishing, aquaculture, Grain-milling and grain-based products, Meat and poultry
processing, Alcoholic beverages, Milk processing, Tomato paste, Fast-food, Ready-to-eat
breakfast cereals, Food additives, flavors etc

Food Product Industry

To Economy
The food processing industry of New South Wales is the state's largest manufacturing
industry accounting for a $28 billion yearly turnover. From local bakeries to commercial food
production factories, New South Wales is home to a plethora of successful food production and
processing industry. Crossing a number of diverse food sectors such as grain, poultry and
confectionary, the food processing industry in New South Wales prides itself on its innovative
work practices, research base and green energy focus and is closely partnered with the successful
agriculture industry. The variety of growing conditions, established food packaging companies
coupled with the state's well serviced transport routes have all helped make the New South
Wales Food and Beverage industries so successful.

With a history that is as old as white settlement in Australia, New South Wales boasts
one of the country's most profitable wine industries. With several successful production regions
led by the Hunter Valley, Central Ranges and Riverina, New South Wales is internationally
renowned for its award winning cold climate whites such as the Hunter Semillon and the
signature Riverina botrytis sweet wines.
Processed Food and Beverages
The Canadian sustenance and drink handling industry supplies around 80% of prepared
nourishment and refreshment items accessible in Canada. In 2017, the industry had offers of
$78B.

Nourishment preparing, which is characterized here according to the North American

Industry Classification (NAICS 311), is an essential industry to the Canadian economy. It is the
second biggest assembling industry in Canada after transportation gear. The sustenance business
utilizes around 268,000 individuals. In 2017, offers of nourishment handling items were
esteemed at $68B.

Refreshment handling (NAICS 3121) incorporates soda pops and filtered water
fabricating, wineries, bottling works and refineries. It utilizes around 32,000 individuals and in
2017, it deals were esteemed at $10B.