Institute of Management,

Nirma University
MBA Programme
Batch 2023-25

Course: Operations Management (6MP202)

Type: Group Project (Field Work)
Section: D
Submitted to:
Prof. Dinesh Panchal

Submitted by:
Utsav Khandelwal (20BCM084)
Akash Maurya (23MBA406)
Priyank Patel (23MBA439)
Samarth Gupta (23MBA445)
Sejal Bafna (23MBA447)
Sweta Chakraborty (23MBA453)
 About the Project:
In Project-1, we will cover our Field work report in two phases, i.e., Phase- I
and Phase II. In this document, we will be covering w.r.t Phase-I of the Field
Work. Phase-I covers the preliminary aspects that one must be aware of about
the organization such as the organization, its competitors, its advantages, etc.

The Scope of the Phase-I project is as follows:

 Identification of a company with its location.

 Sector the company deals with.
 Business Environment Assessment
 Comparison of the organization with its competitors on various
parameters.
 Identifying the concepts of Operation Management applicable in the
organization.
 Based on t h e preliminary aspects covered, focusing on questions
to be addressed during Phase II.
 The outcome of Phase-I.

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 Organization - Fun India Dairy (Ice Cream manufacturer)

Fun India Dairy is an Indian ice cream company based out of Mumbai. FID is a classic example of a
company that is localizing a Western product for the average Indian consumer. In other words, they
are producing a variety of ice creams and frozen desserts at cheaper rates than most competitors.
Their business strategy allows them to cater to a mass of common consumers who want to enjoy
these treats for as cheap as Rs. 5. Third-party manufacturers hired by Fun India produces these
sensational and innovative products. This enables them to reach out to a wider consumer profile,
especially in remote areas and allows them to make up for the production cost. We will visit the
factory site at Gandhinagar, called Indian Dairy and Food Company.
Fun India Dairy has been in this business for almost 20 years and has reputed ISO certifications,
making them a trustworthy brand. Fun India’s motto is “to serve good and serve more.” They are
doing this by tapping into a niche industry in India. Ice cream and related products are not heavily
explored in India as much as it is done abroad. As ice cream is an occasional treat for most people,
very few local brands are willing to offer these treats at the base price. However, FID is changing
that narrative. With a very localized vision, they are expanding into the nooks and cronies of some
states in India to serve rural and urban customers.
Fun India Dairy must also keep a keen eye on hygiene and quality as a manufacturing company.
Being an ice cream seller, they must cater to a wide pool of audiences, including children and the
elderly. FID must follow the same protocols across all its third-party factories, including Indian
Dairy and Food Company. We intend to address these niche hassles that the factory employees
might face, understanding how their production line works, what kind of project set-up they have
and more.

Identify the industry sector for the selected organization. Based on secondary
data, prepare the overall business environment and competitors' assessments
for the selected organization.

Fun India Dairy falls under the “Food and Beverage” industry sector. It is specifically part of the
“Ice Cream and Frozen Dessert Manufacturing” sub-sector within the broader food and beverage
industry. The ice-cream industry in India is a large and competitive market, driven by the country’s
young population. With a rise in disposable incomes and changing palette, Indian consumers are
almost regular buyers of ice-cream. And let’s not lie, with the increasing temperatures, these treats
are alluring to consumers from all economic backgrounds. While affording Basking Robbins is not
everybody’s cup of tea, local business-like Fun India Dairy, Gopal Ice Cream, Oswal and more
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keeps the marginal consumer engaged with many flavourful ice-creams. The key players of the ice-
cream in India are Amul, Kwality Wall’s, Vadilal, Mother Dairy, Havmor and many others. This
market also welcomes the presence of small-scale and local ice-cream manufacturers across
different regions. Fun India Dairy is one of them.
The business environment for any B2C company depends on the customer demand and competitive
pricing. When a business is selling a fast-consumable good like ice-cream, cheaper pricing and good
quality are key factors that can drive sales. Fun India Dairy as mentioned above, deals in the local
market. It primarily focuses on serving the rural and the village areas of the Indian market. Their
vision has always been to spread happiness to the remotest places of India at affordable prices. This
makes FID fall under a niche market with very marginal turnover, year-on-year.
Here's an overview of the business environment of Fun India Dairy in India:
Consumer Preferences: The palette of the Indian consumer varies from season to season and state to
state. With so many cultural influences, the preferences are very diverse. FID, has to consider local
and seasonal flavors to keep up with demand. For example: promoting mango popsicles in
summers is a major trend across India.

Distribution Network: Fun India Dairy has an extensive distribution network that spans across the
rural areas in India. They have paired up with multiple local outlets like Malti Ice-cream industries
in Jabalpur, Kamboliwala diary in Bharuch, Kamal Milk Foods in Chandigarh, Indian Dairy and
Food Company in Gandhinagar, Health Food Product Pvt. Ltd. In Cuttack et cetera. With such an
intrinsic and localized network, FID can reach the consumer pool hidden in the country’s remote
areas.

Raw Material Sourcing: Any ice cream brand depends on raw materials like milk, oil, flavors,
cream, plastic materials for packaging, cartons for packaging and appropriate cooling equipment.

Regulatory Environment: The food industry is subjected to many conditions and rules to ensure
optimum hygiene is maintained. Government authorities set these standards. FID ensures it meets
all the set standards to maintain quality and consumer trust.

Economic Factors: As FID’s target consumers are marginal people in rural areas, the economic
trends greatly impact the purchasing power and sales of FID.

Social Factors: FID’s motto makes it a socially inclined company as they sell their products for as
cheap as Rs. 5. Their main goal is to ensure the affordability of ice creams and frozen desserts in
metropolitans and the country’s rural areas.

While the company is only 20 years old it has acquired enough market popularity to have some
competitors. Here’s a brief assessment on them:

Fun India Dairy falls under the “Food and Beverage” industry sector. It is specifically part of the
“Ice Cream and Frozen Dessert Manufacturing” sub-sector within the broader food and beverage
industry. The ice cream industry in India is a large and competitive market, driven by the country’s
young population. With a rise in disposable incomes and changing palette, Indian consumers are
almost regular buyers of ice cream. And let’s not lie, with the increasing temperatures; these treats
are alluring to consumers from all economic backgrounds. While affording Basking Robbins is not
everybody’s cup of tea, local business-like Fun India Dairy, Gopal Ice Cream, Oswal and more keep
the marginal consumer engaged with many flavourful ice creams. The key players of ice cream in
India are Amul, Kwality Wall’s, Vadilal, Mother Dairy, Havmor and many others. This market also
welcomes the presence of small-scale and local ice cream manufacturers across different regions.
Fun India Dairy is one of them.
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The business environment for any B2C company depends on customer demand and competitive
pricing. When a business sells a fast-consumable good like ice cream, cheaper pricing, and good
quality drive sales. Fun India Dairy, as mentioned above, deals in the local market. It primarily
focuses on serving the rural and village areas of the Indian market. Their vision has always been to
spread happiness to the remotest places of India at affordable prices. This makes FID fall under a
niche market with very marginal turnover, year-on-year.
Here's an overview of the business environment of Fun India Dairy in India:

Consumer Preferences: The palette of the Indian consumer varies from season to season and state
to state. With so many cultural influences, the preferences are very diverse. FID must consider local
and seasonal flavours to keep up with demand. For example: promoting mango popsicles in
Summer is a major trend across India.

Distribution Network: Fun India Dairy has an extensive distribution network that spans rural areas
in India. They have paired up with multiple local outlets like Malti Ice-cream Industries in Jabalpur,
Kamboli wala dairy in Bharuch, Kamal Milk Foods in Chandigarh, Indian Dairy and Food
Company in Gandhinagar, Health Food Product Pvt. Ltd. In Cuttack et cetera. With such an intrinsic
and localised network, FID can reach the consumer pool hidden in remote areas of the country.

Raw Material Sourcing: Any ice cream brand depends on raw materials like milk, oil, flavors,
cream, plastic materials for packaging, cartons for packaging and appropriate cooling equipment.

Regulatory Environment: The food industry is subjected to many conditions and rules to ensure
optimum hygiene is maintained. Government authorities set these standards. FID ensures it meets
all the set standards to maintain quality and consumer trust.

Economic Factors: As FID’s target consumers are marginal people in rural areas, the economic
trends greatly impact the purchasing power and the sales of FID.

Social Factors: FID’s motto makes it a socially inclined company as they sell their products for as
cheap as Rs. 5. Their main goal is to ensure the affordability of ice cream and frozen desserts in
metropolitans and the country’s rural areas.

A value share of 50% of the ice cream market is covered by Western flavours such as Vanilla &
Chocolate. Though price sensitivity stays high, there is still significant opportunity for market
growth by boosting penetration, consumption levels, or both.
Due to severe under-penetration, there is a high opportunity for high-quality ice cream brands in tier
II & III cities. Apart from that, Quick Commerce companies are helping ice cream brands increase
their market share through doorstep delivery as consumers prefer more in-home than out-of-home
consumption. So, Major brands like Vadilal, Amul, Unilever & Cream Bell are partnering with
online platforms to expand their delivery footprint through dark stores.

The key competitors of Fun Dairy are:

Kartik corporation
Gopal Ice-cream
Dairy Taste Ice Cream Industries
Riddhi Ice Cream
Oswal Ice Cream
Shri Murlidhar Ice Cream

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Fun India Dairy competes in a product range of Cups, Cones, Candies, and Kulfi in the form of
frozen Desserts, & Premium Ice Creams.
Regional and traditional flavour variations are quickly gaining commercial traction. The market is
being further stimulated by the availability of a wide variety of Flavors, including unique Indian
flavours like Anjeer, Badam, Kesar, Pista, Nolen Gur, and Raj hog, as well as various kulfi
variations including Rabri, Faluda, and Matka Kulfi. Fun India provides 50-plus Flavors in more
than 200 packs and forms.
Additionally, the development of the sector is greatly aided by the proliferation of online retail
channels that provide simple shopping, a broad selection of Flavors, and affordable prices, as well
as by advancements in the architecture of the cold chain.
Other reasons driving the expansion of the Indian ice cream industry include the rise of fierce
competition between top domestic and foreign market players and the introduction of gluten-free
and vegan options.

For the selected organization, prepare the list of applicable Operations Management concepts.
and explain briefly how they will apply. This will be based on secondary data only. (100 to 150
words)
Operations Management Concepts: Operation Strategy, Types of Process, Service Elements,
Location, Layout, Quality, Process Capability, Process Control, Forecasting, & Inventory
Management.
Process

Make to Stock Manufacturing process. There are various machines which give output of around
18000 ice-cream sticks at a time, hence Mass Production of ice cream.

Location
Suburban location to cater to local nearby villages and dairies to get milk.

Layout
Production line and batch processing depend upon the ice cream type.
And the layout has been made keeping this in mind.

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1. The milk route should be as short as possible.
2. Reception and dispatch platforms must be arranged about the plant so that congestion of transport
vehicles is avoided.
3. Laboratory should have an easy approach to the processing, reception, and filling of rooms.
4. Boiler should be located near the place where steam is required.
5. Refrigeration machinery room should be near the process room and cold store.

Quality
Laboratory tests of each batch to maintain FSSAI norms.

Forecasting & Inventory

Demand forecasting
This type of forecasting involves predicting customer demand. Maintaining and storing ice cream in
cold storage is expensive; hence, the company utilizes the concept of Just-in-time delivery. This also
helps them to manage the inventory during the off-season. One complete manufacturing cycle takes
around 8 hours to complete, and thus they start the process as soon as they receive mass orders.

Questions for visit

1. Can you tell us about the quality and sourcing of your ingredients?
2. How do you ensure the safety and hygiene of your manufacturing process?
3. Do you have any special certifications or quality assurance measures?
4. How do you handle flavor development and customisation for private labels or speciality
products?
5. What are your packaging options, and do you offer eco-friendly packaging solutions?
6. How do you manage distribution and logistics to ensure timely delivery of products?
7. How do you stay updated with industry trends and consumer preferences?
8. Do you have any ongoing research and development efforts to improve your products?
9. How do you handle seasonal variations and demand fluctuations for ice cream products?
10. How to you manage an increase/decrease in demand?
11. How do you prioritise a product in higher demand than other products?
12. How do you calculate efficiency?
13. How do you handle situations where there is some issue with the machinery?
14. How do you check the quality?
15. How do different seasons impact production?
16. How do you manage storage?
17. How do you manage the supply from manufacturing till it reaches the customer?
18. Is there any common process for all the products?
19. Do you outsource anything?
20. What changes would you make or have made to be ahead of the competition?
21. What are the issues you face in the operations?
22. How is the team trained?
23. Is there any manual interference?
24. How do you handle defected/spoiled products?

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