A Project On McCains

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A Project on

“PROCESSING OF FROZEN FOOD AND IT’S


MANUFACTURING”

IMBA Program
Semester-7

(MBA SEMESTER-1)

Batch: 2016-2021

Prepared by

Charmi Mistry 201600510010063


Janvi Modi 201600510010066
Dhruvi Pandit 201600510010072
Dhrumi Patel 201600510010082
Karan Sadhnani 201600510010113
Mohit Sadhnani 201600510010114
Vaidehi Shah 201600510010142

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

Overview of the industry

Frozen Food Market Overview:

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

Frozen pizza brand:

 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.

Frozen Food Packaging Market Segmentation:

On the basis of food type, the global frozen food packaging market is segmented into:

 Frozen Meat, poultry, and seafood

 Baked goods

 Frozen specialties (pizza, side dishes, breakfast food etc)

 Frozen Fruits and vegetables

 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

Consumer buying patterns are determined by trends.

There is no added salt in oven chips and added salt has been reduced by 50 % in other potato
products.

 TECHNOLOGICAL FACTORS

McCann is continually being faced by new challenges from 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.

Red represents high level of ingredients such as fats and salts.

Green represents slow levels.

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SWOT ANALYSIS

STRENGHTS

Strong focus on quality.

McCann is leading producer.

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

Rising trend for ready to eat products.

Expanding demand for private label products.

THREATS

ConAgra foods , INC

J.R Simplot Company

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Introduction to Company

History of the company: McCain’s

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

1. Extra Crisp, Extra Delicious.

McCain French Fries are a taste sensation - crispy on the outside, fluffy in the centre and
delicious through and through.

Available in 200g, 420g, 750g & 1.25kg packs

2. Crispy Happy Potatoes

McCain Smiles are delicious mashed potatoes, seasoned and shaped into happy faces. Go
ahead, take a bite and keep smiling!

Available in 175g, 415g , 750g & 1.25kg packs

3. Crispy Parsley Coated Potatoes

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.

Available in 400g pack

4. Crispy Coated Vegetable Patties

McCain Veggie Burgers are a fine blend of fresh vegetables and mashed potatoes, lightly
seasoned with spices and coated with crispy bread crumbs.

Available in 360g packs (6 pcs)

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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.

Available in 160g, 400g & 760g packs

6. Crunchy Veggie Delight

McCain Veggie Nuggets are irresistible combination of potatoes, vegetables & bold Tandoori
seasoning, finely coated in crispy golden bread crumbs.

Available in 325g packs

7. Tasty and Crispy Fries

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.

Available in 375g packs

8. Smiles Pudina Chatka

New Smiles Pudina Chatka are delicious mashed potatoes seasoned with chatpata pudina and
shaped into happy faces.

9. Extra Crunchy Potato Nuggets

Light, golden bite sized Potato Nuggets deliciously seasoned with chilli and garlic.

Available in 200g, 420g & 700g packs

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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.

Available in 240g pack

11. McCain “Cheese Jalapeno filling” Mini Samosa

McCain “Cheese Jalapeno filling” Mini Samosa have a “Superhit Taste” with Cheese
Jalapeno filing and a crispy coating giving it a mouthwatering taste.

Available in 240g pack

12. McCain “Cheese Pizza Style filling” Mini Samosa.

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.

Available in 240g pack

13. Crunchy Cheesy Potato Nuggets

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.

Making International Quality Fries

 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

 Potatoes are grown in 200 countries.


 Potatoes chip are processed in 120 plus countries.
 International quality French fries processed in 21 countries only. India is one of them,
located in Mehsana.

Growing conditions for French fries potatoes

 Growing seasons for these potatoes are 120-150 days.


 Long Daylight: 14 to 16hrs days.
 Warm days and cool night for growing them.
 Sandy – loam soil.
 Controlled irrigation.

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Potatoes in India

 India is 2nd largest country in the world followed by China.


 Growing seasons – winter crop.
 Low solids.
 Size too small for French fries.
 High sugar- Potatoes has 80% water and 20% starch. Because of bad temperature the
starch gets converted into sugar.
 Lahaul Spiti in north India has perfect temperature for growing potatoes. Thus when
the potatoes were small they were take there and grown. It was difficult to grow supply
water there, thus the plus point was, glacier water which would help to grow these
potatoes. Thus it is totally naturally way of supplying water.
 There is a chemical specially used for removing the unwanted root or weed on the
potato. Thus a very small amount of the chemical was sprinkled on them so that when
the potatoes grow, it would kill the root.
 Moreover the potatoes were grown in multiplication.

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1998-2011 Breakthrough (India)

 Zeroing in on Gujarat- Prime growing area.


 Zeroing in on varieties- Shepody (a type of potato which is white in colour), Kennebec.

Shepody Kennebec

 Transforming storage practices- high temperature CIPS stores.


 Transforming irrigation practises- drip and sprinkler. This was done so that water
doesn’t get wasted.
 Breakthrough high altitude seed program- Shepody
 Breakthrough growing practises introduced:
1. Paired row- Flat bed planting (size and yield)
2. Pre-chitting (increasing growing days)
3. Cut-seed planting (size)
4. System based fertilizer application.
 Introduction to Santara (white and yellowish potatoes) eradicates tuber length problem.
 The first bulk and box storage of Gujarat.
 Direct dealing with more than 15000 farmers for potatoes.

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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.

 Line 1: (April 2007) 2 tons speciality lines.


 Line 2: (March 2011) 2.0 tons speciality lines.
 Line 3: (November 2013) 7.5 tons speciality line.
 Total employees:
1. Salaried - 307
2. Hourly - 450
 Current shift pattern- 8 hrs*3 shifts, 48 hrs/week
 Mehsana has 2 cold stores on site with capacity to hold approx 1,530 tons.
 Water recycling facilities, Mehsana recycles 785% of its water.
 More than 15000 farmers dedicated to provide potatoes.

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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.

5. Pre heater/ Metering tank


Potatoes are softened by being passed through a hot water bath at 40 to 50 degree.

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.

 Storage and Bin

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

The potatoes are boiled here for further process.

 Peeler

Potatoes are now peeled and cut into particular shape.

 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

 Firstly the potatoes are received through trucks by two ways :

1. The potatoes are directly loaded from the truck and

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.

 It provided us the opportunity for interactive learning experiences in class as well as


outside the classroom 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.

 We can have a practical knowledge of how systematically and in a well organized


manner the corporate sectors and industrial sectors actually works in today’s world
and how the safety measures are having such a significant importance.

 The following industrial visit also broadened our horizon with the practical exposure
to different workforces.

 This also helped us in developing our communication and interpersonal skills.

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REFERENCES

Company’s internal and external factors

 Company’s internal factor’s such as company’s staff and company’s employees


designated such as General Manager, Plant Manager, Department Manager and
Co-workers.
 Company’s other internal factors are such as the plant itself where we visited, the
Plant Layout (Blue Print which is attached above) and the way of Power Point
Presentation by which the process of manufacturing was explained to us at an initial
level.
 Company’s external factor for our reference or guidance was from google and from
the company’s official website
www.mccain.com

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THANK YOU

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