A Project On McCains
A Project On McCains
A Project On McCains
IMBA Program
Semester-7
(MBA SEMESTER-1)
Batch: 2016-2021
Prepared by
Guided by
Dr. Gurmeet Singh
Submitted to
GLS University-Faculty of Management
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ACKNOWLEGEMENT
A project usually falls short of it expectation unless guided by the right person at the right
time. This project would not have been completed without the direct and indirect help and
guidance of such people.
First we would like to show our sincere gratitude to GLS University, Faculty of
Management for providing us with this unique experimental learning opportunity that
really helped us in improving our visualization skills and understanding of Production
management and its fundamentals area of it. We would like to thank Dr. Hitesh Ruparel
(Director, GLS University, Faculty of Management) and Dr. Kavita Kshatriya (HOD
IMBA program) for their kind support. We would also like to thank Dr. Gurmeet Singh for
his valuable guidance for this project.
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Introduction to the Industry
Global frozen food market is expected to garner $306 billion by 2020, registering a CAGR
of 4.1% during the forecast period 2015 - 2020. The deep frozen food products that can be
stored and used over a long period are referred to as frozen foods. The most widely used
frozen food products include frozen ready-to-eat meals, fruits & vegetables, meat & poultry,
sea food etc.
The global frozen food market comprises retail as well as business customers. Retail
customers of frozen food are individuals and households, whereas business customers include
hotel chains, fast-food outlets, caterers, and other business buyers. Retail customers mostly
prefer cooked and semi-cooked ready-to-eat food, meat, and soups amongst the class of
available products in the market. While business customers majorly use frozen meat, sea
food, frozen pizza crust, bread, frozen dough, potatoes, and vegetables as the key ingredients
for preparing food for end customers. Based on geography, Europe is the largest market,
closely followed by North America. The growth of the frozen food market would primarily
be driven by the growing demand and consumption of frozen foods in the developing
markets across the Asian countries such as India and China. Increase in disposable incomes
coupled with change in lifestyle and food habits are major factors that boost the market
growth in these regions. Moreover, a rapid increase in number of large retail chains including
hypermarkets and supermarkets has bolstered the demand of frozen food in the developing
Asian countries. However, lack of proper refrigeration facility in retail stores and inadequate
distribution facility in semi-urban and rural areas are the major challenges for the industry in
developing markets. The developed markets are expected to continue their growth at a
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moderate pace, majorly driven by the mounting consumer preference for healthy frozen
foods.
The market is segmented based on the product type, user, and geography. The products covered
in the report include frozen ready meals, meat & poultry, sea food, vegetables & fruits,
potatoes, and soup. Based on the user type, the market is segmented into retail users and food
service industry (hotel chains, restaurants, and caterers). To gain a comprehensive
understanding, the market is analysed by the key geographical regions, namely, North America,
Europe, Asia-Pacific, and LAMEA. North America and Europe are the large developed
markets of frozen food, whereas developing markets including Asia-Pacific and LAMEA are
catching up fast. Major companies that operate in this market have adopted acquisition and
new product development as their key business strategies to gain a competitive edge over the
other players. Aryzta is one of the largest suppliers of frozen bakery in North America and
Europe. Nestle is a leading player in frozen pizza segment in North America and Europe. Mac.
Cain foods launched local food variants in India, developed specifically as per the traditional
food habits of customers. Leading players profiled in the report include Aryzta A.G., General
Mills Inc., Kraft Foods Group Inc., Ajinomoto Co. Inc., Cargill Incorporated, Europastry S.A.,
JBS S.A, Kellogg Company, Nestle S.A.
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Major players
According to India Frozen Food Market Outlook, 2022, major factors driving the industry are
growing customer craving, rising awareness and acceptance, increase in selling points, rise in
number of working women, changing lifestyle, deeper penetration by organized retail players
and increase in available freezer space at the retail domain.The Indian frozen food market is
segregated mainly into six segments viz. frozen vegetables, frozen seafood, frozen snacks,
frozen red meat, frozen poultry and others. Consumers in developed countries identify these
frozen products as useful home meal solutions and appreciate the ease and quickness of
preparation. This is considered to be the main USP of any frozen product available in the
market. However, in India, consumption of frozen food is still close to negligible. Despite the
challenges being faced by the cold chain industry, the frozen food market is expected to grow
due to consumer demand and many new players and brands entering into the industry. These
new players will bring into new varieties of product to fulfil the consumer demand. Frozen
foods have also witnessed rapid growth with the evolution and growth in modern retail. Today,
modern trade/retail is a more favoured shopping destination as consumers find greater variety,
quality and convenient pack sizes here. Moreover, modern stores also provide space for better
brand visibility and communication. Some of the best performing retail stores include Easyday,
Tesco, HyperCity, Spencer's, DMart, Food Bazaar, etc. which have extensive cold storage
facilities with them.
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Major Products
Here are some frozen food major products:
Amy's Kitchen
Aunt Bessie's
Banquet Foods
Bellisio Foods
Birds Eye
Bubba Foods
Dr. Praeger's
Eggo
El Charrito
Felix
Findus
Freezer Queen
Frikom
Lender's Bagels
M&M Meat Shops
Marie Callender's
Master Chef
Maxaroni
McCain Foods
Morton Frozen Foods
Mrs. Smith's
Ore-Ida
Pepperidge Farm
Perdue Farms
Ramly Group
Ross Group
Spring Home
Stouffer's
SuperFresh
Swanson
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Tee Yih Jia
Tyson Foods
Tyson Looney Tunes Meals
Bagel Bites
California Pizza Kitchen
Celeste
DiGiorno
Dr. Oetker
Ellio's Pizza
Fiestada
Grandiosa
Palermo's Pizza
Pizza Pops
Richelieu Foods
Tombstone
Totino's
Uno Chicago Grill
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Contribution towards the GDP
The Indian food industry is poised for huge growth, increasing its contribution to world food
trade every year. In India, the food sector has emerged as a high-growth and high-profit sector
due to its immense potential for value addition, particularly within the food processing industry.
The food industry, which is currently valued at US$ 39.71 billion is expected to grow at a
Compounded Annual Growth Rate (CAGR) of 11 per cent to US$ 65.4 billion by 2018. Food
and grocery account for around 31 per cent of India’s consumption basket. Accounting for
about 32 per cent of the country’s total food market, The Government of India has been
instrumental in the growth and development of the food processing industry. The government
through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage
investments in the business. It has approved proposals for joint ventures (JV), foreign
collaborations, industrial licenses, and 100 per cent export oriented units.
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Growth and Trend of the Industry
There has been a remarkable expansion in frozen food product categories, owing to the
considerable growth in freezer space in modern retail markets. Busy lifestyles and increasing
demand for convenience food are among the major driving factors of the global frozen food
market. When a food product (regional/staple/seasonal) is frozen and preserved, it is easily
available, anywhere & anytime. This easy availability has influenced the purchasing patterns
of consumers, placing frozen foods among the products on their list of daily consumables. The
market has few limitations like the price of a frozen product is much higher when compared to
its fresh form due to its high production cost. There are limitations in monitoring accurate
freezing temperature and maintaining the frozen product intact. The global frozen food market
is vast, and there are excellent opportunities to explore this market, especially, in developing
countries. The global frozen food market is segmented based on four key factors. By type, it is
differentiated as ready-to-eat (thaw & serve), ready-to-cook and ready-to-drink. The product
segmentation covers various frozen food categories of fruits & vegetables, meat, fish, ready
meals, beverages, snacks, etc. The market is also segmented by the major freezing
technologies, such as IQF (Individual Quick Freezing), blast freezing, etc.
Japan leads the Asian countries, regarding frozen food consumption, with 7.82 million tons, in
2010. Ready meals are the most expensive among the frozen food product categories, and thus,
account for the largest market share of 40%, regarding revenue. Frozen pizza is the fastest-
growing segment in the frozen ready meals segment. Increased consumption of frozen foods is
influencing companies to produce sustainable and durable food products. Leading companies
in the global food & beverages industry are investing in the growth of the global frozen foods
market. As per estimates, the contribution of the top four companies, such as Nestle and H.J.
Heinz, in the global frozen foods market is approximately 19%, collectively.
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Packaging in the Industry
The most important factor which has accelerated the growth of frozen food packaging market
is the growth in the demand for frozen food. The global frozen food market is expected to
grow at a CAGR of around 4% during the forecast period of 2016- 2024. Some of the factors
which have fueled this growth are dynamic lifestyle, urbanization, changing food habits,
increasing disposable income, increase interest in international foods, increase in number of
nuclear families and easy availability of products due to rise in number of retail chains.
Furthermore, the increase in investments for innovative packaging and development of new
features in the existing products by the vendors drives the growth in the frozen food packaging
market. Some of the innovating packaging trends like tear notch, hanging holes, sealable
zippers, single serve packaging further drives the demand for frozen food packaging market.
Even though the frozen food packaging market looks attractive, there are certain factors that
can offset this growth. One of the factor that acts as a restraint in the frozen food packaging
market is that, there is a section of population that remain resistant to the use frozen food as
they believe it is unhealthy and less tasty.
On the basis of food type, the global frozen food packaging market is segmented into:
Baked goods
Frozen potatoes
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Frozen Soup
Ice cream
On the basis of product type, the global frozen food packaging market is segmented into:
Bags
Boxes
Pouches
Films
Trays
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SWOT and PESTLE analysis:
POLITICAL FACTORS
On political factors McCain support the government’s initiative.
It believes that the food it provides including potato based products are nutrious, provided they
are prepared in a simple and healthy way.
ECONOMIC FACTORS
It includes changing in buying pattern as per the income level of the consumers.
McCain has raised to this challenge by creating a range of varieties eg oven chips, potatoes and
wedges to appeal a variety of customers.
SOCIAL FACTORS
There is no added salt in oven chips and added salt has been reduced by 50 % in other potato
products.
TECHNOLOGICAL FACTORS
LEGAL FACTORS
The governments food agency has recommended that the firms put traffic light labels on food
to help people understand what they are buying and to help them make the right choices.
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SWOT ANALYSIS
STRENGHTS
WEAKNESS
Limited presence in fast growing product segment may have an adverse effect on company’s
market share.
The company does not have the kind of access o financial resources that the public companies
have.
OPPORTUNITY
THREATS
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Introduction to Company
Building on the potato Produce Company founded by the grandfather Henry McCain and
father Andrew Davies, the frozen fries company was started by the third generation: brothers
Harrison McCain, Wallace McCain,Robert McCain and Andrew McCain (sisters did not join
in the equity of the business). The company is still privately held by their descendants.
In 1957 their first year of production the processing plant at McCain's was able to process 1,500
pounds of potato products every hour. With only 30 employees in their first year they were
able to gross over $150,000 in sales.
Today McCain Foods has over 20,000 employees with 47 production facilities in six
continents. It sells one-third of the world's frozen French fries products in more than 160
countries. The company now grosses 8.5 billion in sales and processes over 1 million pounds
of potatoes an hour using 6.5 million tons a year.
Based on 2014 sales, it is the 19th largest private company in Canada, according to The Globe
and Mail's Report on Business.
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Products of the Company
McCain French Fries are a taste sensation - crispy on the outside, fluffy in the centre and
delicious through and through.
McCain Smiles are delicious mashed potatoes, seasoned and shaped into happy faces. Go
ahead, take a bite and keep smiling!
McCain Super Wedges are crispy coated potato wedges with a special blend of seasoning &
herbs. Ready in minutes, they are perfect as snacks or as accompaniment to meals.
McCain Veggie Burgers are a fine blend of fresh vegetables and mashed potatoes, lightly
seasoned with spices and coated with crispy bread crumbs.
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5. Mazedaar Masala Tikki
Ready in minutes, McCain Aloo Tikki is a classic combination of mashed potatoes and
traditional Indian spices.
McCain Veggie Nuggets are irresistible combination of potatoes, vegetables & bold Tandoori
seasoning, finely coated in crispy golden bread crumbs.
Tasty and Crispy Fries with Six Asli Indian Spices McCain Masala Fries – French Fries with
a twist with the special battering of hot and spicy seasoning over super crisp French Fries.
New Smiles Pudina Chatka are delicious mashed potatoes seasoned with chatpata pudina and
shaped into happy faces.
Light, golden bite sized Potato Nuggets deliciously seasoned with chilli and garlic.
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10. McCain “Cheese Corn filling” Mini Samosa
McCain “Cheese Corn filling” Mini Samosa have a “SuperhitTaste” with Cheese and juicy
Corn filing and a crispy coating giving it a mouthwatering taste.
McCain “Cheese Jalapeno filling” Mini Samosa have a “Superhit Taste” with Cheese
Jalapeno filing and a crispy coating giving it a mouthwatering taste.
McCain “Cheese Pizza Style filling” Mini Samosa has a “Super hitTaste” with Cheese Pizza
Style filing and a crispy coating giving it a mouthwatering taste.
McCain Potato Cheese Shotz are a flavoursome union of potatoes, cheese and herbs
seasoning, coated in crunchy golden breadcrumbs.
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Introduction to McCain’s
McCain, Mc means son and Cain is the surname of a person, so it refers to the company
of Cain’s Son. There were 4 brothers doing potato farming. They had huge number of
potatoes. Thus they thought of expanding it gradually. They expanded in America, UK,
Europe, South Asia and many other countries. In Asia McCain was first started in china
as it is the large producer of potatoes. Second was India, as it is 2nd largest producer of
potato, but it was started a little late compared to other countries.
McCain has 3% of world potatoes. No other company has such a large number of
potatoes in the world.
It has 50 processing plants and products sold in more than 150 plus countries.
It has done business with many other companies like Mc Donald, KFC, Burger king,
etc where we see McCain French fries. Thus we can see there is long chain of McCain
with other companies.
The company is evenly scattered around the world. E.g. Europe, India, America, South
America.
Besides French fries and potatoes specialities, McCain also markets a range of frozen
food including: Frozen vegetables, frozen pizza.
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Potatoes processing – Global
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Potatoes in India
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1998-2011 Breakthrough (India)
Shepody Kennebec
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Plant Profile
Total capacity of the facility is 28K tons, speciality and 48K tons French fries, total 70k tons
based on 325 days.
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Process
1. Potatoes Receiving
Which type of potatoes, temperature, colour, size etc is seen here. After they received
these potatoes they send it for further process. Also there are some workers who remove
the defected potatoes.
2. Sizing
Here potatoes should be cut down in particular size. Not in too small or medium it
should be big and for that they make sure that potatoes is in large size (shepody).
3. Steam Peeler
High pressure steam is used to loosen the peel. Each batch is comprises of upwards to
300 kg and steam time can. Because of this steam pressure the peel gets removed easily.
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4. De-skinner/washer
Utilizing water and scrubbers, the de-skinner/washer removes the remaining peel from
the potatoes. Extra material like soil, dust on them is washed off prior. This way the
potatoes get cleaned.
6. Sorting/Cutting.
Potatoes are sent through a set of water, knives and cut into pieces.
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7. Defect Removal.
There are many cameras fitted up and down. It detects the defects in potatoes. The
camera tells the machine, which one is defected and the machine push the fries down.
This way we get good fries and defected are removed. This machine removes 70% of
defected fries. This machine cost worth 1-5crore.
8. Blanching
Leach out excess sugar from fries.
Deactivate enzymes that cause discolouration.
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9. Flumes
Now the fries are run through a solution of a chemical called sodium phosphate which
further protects it’s to become grey.
10. Dryer
The fries are run through a dryer who forces the warm air through the bed of
product.
This process removes excessive moisture.
11. Fryer
Partial fry
Pre – cool and freezer
Frozen grading
Final inspection and packing.
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Various Departments
Line 1 and 2:
In line 1, aloo tikki, hash brown are made. Whereas in line 2, only special items are made.Eg.
Smileys, Veggie fingers, Super wedges, potato bites etc.
Potatoes are received from trucks, checked and stored a large bin.
Washer
The potatoes get washed here, thus extra materials like soil, dust and mud are removed
from them.
Boiler
Peeler
Cut
Here the potatoes are cut into two shapes. One is French fries and other is Hash brown.
Scattering
Here the defected fries are removed. There are cameras fixed both up and down which
automatically lets the machine which is defected and thus it gets removed. And then the fries
which are non-defected are further let to process.
Fry
The fries are now partially fried. There are vibrators that again remove some defected
fries
Cold
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The fries are now taken to other compartment where the fries are taken for chilling.
Packing
The fries are packed here. But there are even 2 processes here. Packaging process for
sending French fries in international companies are different and the other which we buy are
different.
Line 3
2. They reach to the production plant in jute sacks and after they reach there, their quality
check-up is done.
There after they are unloaded from the trucks and are placed on the machines like
conveyor belts which take the potatoes into a large bin or container where they are
stored.
After that the potatoes are taken for washing process in which the defected one or the
rotted ones are removed automatically and then others are washed completely so that
the dirt is removed and the potatoes which don’t match the proper specification such as
their size or weight are removed here itself. These potatoes are further sent to line 1 and
2 for the smashing process.
After the process of unloading and washing is completed the potatoes are sent for the
peeling process and there after peeling is done, the extra starch is removed there only
and afterward they are sent to the machine where they becomes parallel for getting a
proper cut of the fries. Then the potatoes are cut down into perfect shape for making
fries.
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Now the fries have rough surface which is to be removed. Thus they are taken through
a process where their surface is made smooth and the rough thing is thrown into scrap.
The fries go in hot water, which already has a particular proportion of sugar and salt (a
very little proportion). The reason for this process is that it will give fries a perfect
golden colour as required at the time of final frying which is consumed by the end
consumers.
The fries are taken further for partial fry. After getting fried, they go to a cold room
where the fries are cooled down. This is the only department where cooling and packing
of fries are done.
Now the fries go for packing. The process of packing is done in 2 ways. Packing of
fries which are going to different companies like KFC, Mc Donald’s, Burger Kings etc
in one compartment. The one which we receive at home, its packing is done in other
compartment.
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Blue Print
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Conclusion
We concluded that, while going through the entire industrial visit, the production process
carried out there was completely organized and structured and the complete staff and all
workers are trained in a very proper manner and thus the production carried over there is very
systematized and efficient manner with minimum amount of the wastage. Through this we even
got the practical knowledge of how the production process takes place in an industry or a firm.
We extend our heartiest thanks to McCain Foods Ltd., Mehsana, for allowing us to visit their
plant and making a day to cherish for some of the lucky students like us who are honoured with
the humble gesture to get an opportunity to visit such an esteemed organization. We also want
to thank Mr. Rajeev Chauhan, General Manager of the Plant for coordinating the visit and
giving us such a great opportunity for visiting the plant.
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LEARNING OUTCOMES
Industrial visit as a part of our study in terms of the project, bridges the gap between
the theoretical knowledge imparted to us and the practical learning in real life
environment.
With the help of this we were able to gain the first hand information or the raw data
about the company or the organization.
Through this we were also able to learn the relation building aspect at a basic/primary
level.
With the help of industrial visit we as students can better identify the perspectives of
over all work carried in any organization practically.
The following industrial visit also broadened our horizon with the practical exposure
to different workforces.
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REFERENCES
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THANK YOU
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