Case Study Of KCPL

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Letter of Transmittal

To,
Alok Kumar Gupta, Chairman and Managing Director, Kanpur Confectionaries Private Ltd.
Kanpur, Uttar Pradesh
Date: 18th September 1987
Subject: Evaluation to partner with KCPL
Dear Mr. Alok Kumar Gupta
I am very grateful to you for providing me with an opportunity to provide consultancy services to KCPL. As requested, please find the attached evaluation of the A-One Confectioneries Private Limited’s proposal to associate with KCPL in the production of biscuits and overall plans for KCPL.
Yours Sincerely,
Tapish Kardam
Consultant
Cluster 10, Udaipur - 313001

Executive Summary
Kanpur Confectionaries Private Limited is a family business located in Kanpur, UP. Mr Mohan Kumar Gupta started KCPL in 1945, and now the company is being looked after by three of his son. KCPL is biscuit manufacturing company and is known for its excellent quality, crispness and affordable price. Between 1973-74, Glucose biscuit was the fastest growing segment in the biscuit industry. The KCPL reached the second position in the northern region with their monthly sale of 110 tonnes of biscuits per month. By 1980-81, KCPL doubled its production capacity to 240 tonnes per month. Their turnover increased from Rs. 2 crores in 1979-80 to Rs. 3 crores in 1983-84. But in 1983-84 and 1986-87 their sales declined, their production
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Pearson orders 50 tonnes from KCPL and generates revenue of Rs. 150,000 per month(see Exhibit 2) to KCPL and although they promised an off take of 100 to 125 tonnes per month but only orders only for 50 tonnes per month. Market penetration had been stagnant with Pearson as they have managed only to sell 50 tonnes of biscuits per month even after being in the market for 11 months. Also, Pearson does not bring any support to improve efficiency and improvement to

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