Scribd Logo
Upload

Welcome to Scribd!

  • 45 views

    Indian Cashew Processors LTD

    Uploaded by

    RahulKumar
    Indian Cashew Processors Ltd (ICP) was founded in 1942 in Kerala and has two divisions: packaging and cashew nut processing. It accounts for 1% of India's cashew export. The document discusses ICP's key problems like revenue loss from broken nuts and rising raw material prices. It presents alternatives like backward integration through own plantations or buying African processors. Forward integration through direct consumer marketing or secondary processed products is also considered. Establishing an additional processing unit closer to major markets like the US is recommended, though Ireland has transportation issues. Potential risks include loss from unsold estimated products and over-reliance on the US market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Indian Cashew Processors LTD

    Uploaded by

    RahulKumar
    45 views8 pages
    Indian Cashew Processors Ltd (ICP) was founded in 1942 in Kerala and has two divisions: packaging and cashew nut processing. It accounts for 1% of India's cashew export. The document discusses ICP's key problems like revenue loss from broken nuts and rising raw material prices. It presents alternatives like backward integration through own plantations or buying African processors. Forward integration through direct consumer marketing or secondary processed products is also considered. Establishing an additional processing unit closer to major markets like the US is recommended, though Ireland has transportation issues. Potential risks include loss from unsold estimated products and over-reliance on the US market.

    Original Title

    Indian Cashew Processors Ltd

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Indian Cashew Processors Ltd (ICP) was founded in 1942 in Kerala and has two divisions: packaging and cashew nut processing. It accounts for 1% of India's cashew export. The document discusses ICP's key problems like revenue loss from broken nuts and rising raw material prices. It presents alternatives like backward integration through own plantations or buying African processors. Forward integration through direct consumer marketing or secondary processed products is also considered. Establishing an additional processing unit closer to major markets like the US is recommended, though Ireland has transportation issues. Potential risks include loss from unsold estimated products and over-reliance on the US market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    45 views8 pages

    Indian Cashew Processors LTD

    Uploaded by

    RahulKumar
    Indian Cashew Processors Ltd (ICP) was founded in 1942 in Kerala and has two divisions: packaging and cashew nut processing. It accounts for 1% of India's cashew export. The document discusses ICP's key problems like revenue loss from broken nuts and rising raw material prices. It presents alternatives like backward integration through own plantations or buying African processors. Forward integration through direct consumer marketing or secondary processed products is also considered. Establishing an additional processing unit closer to major markets like the US is recommended, though Ireland has transportation issues. Potential risks include loss from unsold estimated products and over-reliance on the US market.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    Indian Cashew Processors Ltd

    SUBJECT:SMBP

    Submitted by :
    GROUP E
    About Indian Cashew Processor Ltd

     ICP was founded by Mr. Singh in the year 1942


     It is located in Kerala
     It has two main divisions
    1)Packaging division
    2)Cashew nut processing division
     1% of total export of cashewnuts in India is done by ICP.

    Saturday,
    July 11, 2020
    STRUCTURE OF WORLD CASHEW NUT
    INDUSTRY
     Raw material producers – India, Mozambique, Kenya etc.
     The raw cashew nut processors ( primary processing) – India lost its monopoly due
    to introduction of machines for peeling
     The cashew nut customers – importers are US, UK, Canada, Japan, The Soviet
    Union.
     In India, about 200 private companies account for the bulk of cashew nut
    processing – they employ around 3,00,000 employees to avoid cracking during
    processing.
     Each company employs 800 – 1500 people(80% women)

    07/21/2020
    Key problems faced by ICP
     Broken pieces loses its commercial value up to 25
    – 35% which causes revenue loss
     Easy access of raw nuts by Africa raised the prices
     No consumer contact
     Dependency on Russian orders
     Absence of home market
     Control over raw materials (STC)
     Over dependence of management on Mr. Singh
    07/21/2020
    Alternatives available to Mr. Singh

     Backward integration
    1. ICP could invest in company owned plantations.
    2. To start or buy out existing processing facilities in East
    Africa was also considered.
     Forward integration
    1. Start to market directly to consumers.
    2. Setting up secondary processing unit to fry and salt
    cashews and then sell under ICP’s brand name.

    07/21/2020
    Recommendations

     Additional processing unit is required for processing


    facility
     Locationcloser to major markets is beneficial – major
    markets are US, Soviet Union and Europe.
     Favourable conditions in Ireland for establishing unit,
    but there is no direct shipping connections to India,
    Africa, US or Canada. All cargo had to be Transported
    via UK.
     Establishingprocessing unit is recommended considering
    the estimated cost ($2859)
    07/21/2020
    What are the potential risks in this strategy?

     If the products were not sold as estimated, huge loss will be suffered by Mr.
    Singh
     Because warehousing and transportation costs are high in US
     As Indian manufactured products are not well consumed by US citizens,
    depending upon one major market may lead to losses

    07/21/2020
    THANK YOU

    07/21/2020

    You might also like