The Story Of Chocolate

Published Date: 02 Nov 2017

Chocolate was discovered in the late 18th century and every child’s dream came true all over the world. The various brands of chocolate often spoken about in India are Amul, Cadbury and Campco.

In olden days, the ancient human almost led a nomadic life wandering from place to place in search of food. Food is the basic source of energy for living organisms including human beings. Hence all living being need food. But in modern period, man had started discovering new methods of producing food through Agriculture. The various activities involved in getting food crops through agriculture are known as agricultural practices like management of soil, sowing, transplantation and application of manure and fertilizers irrigation, weed control, crop improvement techniques, crop harvesting and protection.

India is a land of villages. Nearly 65-70% of our country is agriculturists. About 75% of the land used for agriculture is cultivated for basic food grain hence it has become a basic industry in our country. Agriculture is one of the oldest occupations of human beings. Agriculture means ploughing of the land, sowing seeds, protecting plants and obtaining crops for the use of people and domestic animals. Commercial crops not only help to earn foreign exchange but also provide raw materials for industries.

The story of chocolate, as far we know it begins with the discovery of America. Until 1492 the world knew nothing at all about the delicious and stimulating flavor that was to become the favorite of millions. The word "chocolates" comes from the Aztecs of Mexico and is derived from the word xocolatl which is combination of the words, xocoli, meaning "bitter", and alt, which is "water". The Aztecs associated chocolate with Xochiquetzal the goddess of fertility. In the new world, chocolate was consumed in a bitter, spicy drink called Xocoalt.

Until the 1500’s, no European had ever heard of the popular drink from the Central and South American people. It was not until the Spanish conquest of the Aztecs that chocolates could be imported to Europe, where it quickly became a court favorite.

To keep up with high demand for this new drink, Spanish armies began enslaving Mesoamericans to produce cocoa. Even with cocoa harvesting becoming a regular business, only royalty and the well connected could afford to drink this expensive import. The Spanish began growing cocoa beans on plantations, and using an African workforce to help manage them. Cocoa is also one of the important commercial crops in India. Cocoa is grown on the slopes of Niligiri Hills. The discovery of cocoa was only a first step in the direction of chocolate. The Mayas were the first to cultivate the cocoa bean for the fruits is yielded. They used the beans as an ingredient in their favourite chocolate drink xocoatl. The Mexican Indian world chocolate comes from a combination of the terms chocolate consumed in beverage force.

But the situation was different in England. Anyone with money could buy it. The first chocolate house opened in London. When the people saw the Industrial Revolution arrive, many changes occurred in chocolate. In 1770’s mechanical mills were created that squeezed out cocoa butter, which in turn helped to create hard, durable chocolate. But it was not until the arrival of the Industrial Revolution that these mills were put o bigger use. Not long after the revolution cooled down, companies began advertising this new invention to sell many of the chocolate treats. When new machines were produced, people began experiencing and consuming chocolate worldwide.

Chocolate is created from the cocoa bean. A cocoa bean is filled with fruits pods in various stages of ripening. Roughly two-thirds of the entire world’s cocoa is produced in Western Africa. According o the World Cocoa Foundation, some 50 million people around the world depend on cocoa as a source of livelihood. The industry dominated by three chocolate makers, Barry Callebaut, Cargill and Archer Daniels Midland Company. The first factory for the processing and manufacturing chocolates in India was started during the World War 1 at Bilimoria (Bombay Presidency) and when the war ceased the factory had to shut down due to competition from imported products. However, the chocolate confectionery industries at Calcutta, Mumbai and Madras flourished as they used imported chocolates.

Arecanut plays an important role in the social, economical and religious life of the people Arecanut with the betal leaf is a symbol of auspicious and hostility. Arecanut is said to posses medicinal properties in it. Chewing of arecanut stimulates the nervous system and increases the secretion of saliva in the mouth. It aids the digestive system and possesses the quality of removing bad smell from the mouth.

The cultivation of arecanut has been contributed to the generation of employment opportunities. Several lakhs of marginal and small farmers are engaged in its cultivation. A large number of people are engaged in its trade which actually determines their living condition.

In India, the cultivators of arecanut are mostly confined to Karnataka, Kerala, Assam where it accounts for about 90% of the area. It is also cultivated in other stated like Meghalaya, Tamilnadu, West Bengal, Maharashtra, Andhra Pradesh and Goa, Mizoram, Pondicherry and Andaman and Nicobar Islands in smaller quantities. Among all the Karnataka, Dakshina Kannada and Udupi District consists of 30% of the total is under cultivation of Arecanut.

Confectionery Industry

The confectionery industry in India is approximately divided into:

Chocolates

Hard-boiled candies

Eclairs & toffees

Chewing gums

Lollipops

Bubble gum

Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets. Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively. Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%.

The first factory for processing and manufacturing chocolates in India was started during the World War-II at Bilimoria but due to tough competition from foreign products the company is ceased and stopped its process and it made second attempt in 1936. But it faced failure as the size of operation was economical. Finally it made third attempt to find its success to restart its production.

Mrs.Sathe Biscuit and chocolate co. ltd., Poona commenced production of cocoa powder on a small scale and chocolate manufacture was taken up in 1941. Then the production gradually increased. Later, Madhu Canning Factory Agra, East India Distilleries and Sugar Factories Limited Madras started the production of chocolates.

With the machineries manufactured by five major companies of the cocoa processing and chocolate manufacturing namely-

M/S Carle and Montanari Spa, Italy.

M/S 1-Aasted International APS, Denmark.

M/S Otto Hansel Gmbh, West Germany.

M/S Sollich Gmbh and Co. kg, West Germany.

M/S Sig Swiss Industrial Co, Switzerland.

Cadbury Ltd., which was so far importing cocoa and chocolates into the country, established plant in Bombay for processing and packing of cocoa imported in bulk during the initial stage. The new firms that have engaged into this field in India are Amul, which has completed 50 years of service and the CAMPCO, which came up during the 80’s. CAMPCO is one of the largest factories in South Asia.

Cocoa is used as beverage and chocolate is mainly used as confectionary and to a small extent also used as beverage. The market share of CAMPCO is 5-8%, the Cadbury’s market share is 70% and the Nestlé’s market share is 15-20%. The penetration of chocolate in the country was estimated at 5.5% in 1998. The penetration in urban India stood at while that in rural India as a mere 2.3%. Thus the consumption of chocolate is largely restricted to urban areas where too, the penetration is relatively low.

During the last five years growth in chocolate in India has covered between 10% and 20%, with average growth being at the range of 14-15%. Restricted to urban areas played in the segment have attempted to accelerate growth by adding new consumers to the chocolate market. Although the country with a culture of consuming and exchanging sweets, prepacked branded sweets are yet not popular. The consumption pattern and purchase habits trend to favour local, freshly made products. The ability of chocolate companies to enter this market could provide unprecedented with may be tempering of income pyramid and introduction of low price packs.

Role and importance of chocolate industries

Indian Chocolate Market

Chocolate is an item in the market. Market growth in the chocolate market covered between 10-20% in the year 2001. During the last five years the category was grown by the 14-15%on an average and companies expect to continue growing at a similar rate in the next five years. The market presently has common consumers and they are mainly come through an increase in the income level of consumers.

Chocolate demand is however more a function of affordability. Demand growth depends on shift in income pyramid. When the economy grows at a slower pace, the upward shift income pyramid is slower. This affects the route at which new customers are added. But the existing customers who can afford the product do not down grade. Now the industries in Indian market try to add more new consumers to this fold every year.

In Indian chocolate market lot of opportunities still remain idle, then multinational thinks that potential market and introduce their product. Growing 15-20% per annum, foreign multinational companies are coming to Indian market. Considering the potential because of the impact of Globalization, Indian companies face a tough competition against the giant multinational.

The premium brands, which come thrash official channels, do not pose a threat to our market. However there is a lot of dumping from neighbouring countries like Dubai, Nepal etc of inferior brand of important chocolates. These are not only of low quality, but are brought very near to the expiry dates.

Consumption changes in Indian and foreign consumers

In Indian market, packed and non- packed chocolate are available. Every Consumer spends a low portion of their discretional income to buy chocolates under packed items like Halwa, Mysore paak etc. Most of the consumers have no awareness regarding the benefit of packed chocolate for our health and its caloric power. When a consumer goes for visiting his relative he carries non-packed items and doesn’t carry 400-500gms of chocolates, because they want more for their money. This concept is required to be changed.

In foreign countries every consumer has clear-cut idea about chocolates and they do not go through the non-packed items. So this consumption way and awareness is required for tapping the demand in Indian market.

COMPANY PROFILE

BACKGROUND AND INCEPTION OF THE COMPANY

"CAMPCO" is the short name of the Central Areca nut and Cocoa Marketing and Processing Co-operative Limited. CAMPCO was registered on 11th July in the year 1973, under section 7 of Karnataka Co-operative Societies Act of 1959. The main activity of CAMPCO is procuring and marketing of Areca nut and also manufactures chocolates. CAMPCO was set up with active support of Karnataka and Kerala Government. The growers who were getting a reasonable price faced a sudden marketing crisis during the year 1970-71 when the price of the areca nut began to fall. The situation worsened during 1972 and the price of areca nut fell to such an extent that the growers could get only half of the price. But the cost of living was rising as the cost of input was steadily increased. This created factually a panic among the growers. There was no organized marketing arrangement for areca nut.

Later on the Karnataka Government constituted an expert committee, which recommended to the State Government to organize a Central agency either in the public or the co-operative sector. With the help of Government of Karnataka and Kerala, the "Central Areca nut Marketing and Processing Co-operative Limited" popularly known as "CAMPCO" on 11th July 1973 under section 7 of the Karnataka Co-operative Societies Act 1959.

The growers of areca nut appealed to the Government in turn requested CAMPCO to help the farmers by buying their products. CAMPCO thus went into business of cocoa beans in 1980. After that CAMPCO was able to export cocoa beans of worth Rs.4 crores to the European countries in their initial phase of operation. In the mean time CAMPCO has to face the problem of limited internal market and unremunerated export market. In order to overcome this and increase the local consumption of cocoa based products and export value added cocoa semi-finished products, CAMPCO put up a chocolate factory at Puttur, 50km away from Mangalore.

CAMPCO has signed agreement between companies. They are:

AGREEMENT WITH M/S NESTLE INDIA LIMITED

CAMPCO entered into an agreement with M/S Food Specialties Ltd also known as M/S Nestle India Ltd, on 7th February 1990, for manufacture and supply of bulk quantity of chocolates and cocoa products ranging from 2500MT to 3750MT P.A for an agreed manufacturing fee of Rs. 12,000/- per MT of raw materials. At first Nestle didn’t have any plant and because of experienced people availability of all type of chocolate production with sophisticated machineries Nestle made an agreement with CAMPCO. This agreement is also made good result on CAMPCO to gain demand in competitive market.

AGREEMENT WITH AMUL LIMITED

CAMPCO factory had entered into an agreement with Amul India Ltd, on January 2001 for the manufacture and supply of bulk quality of chocolates. The agreement was made only for 5 years. The Amul Ltd supplies the raw materials to the CAMPCO Ltd; the CAMPCO makes chocolate and supplies to Amul Ltd.

The chocolate products, which were produced to the Amul Ltd, are as follows:

Milky bar – 5.5gm – white centre chocolates

Chocolate – 5.5gm – brown centre chocolates

At present CAMPCO is having its own marketing team and the present set up as follows:-

CAMPCO is one of India’s most modern chocolate manufacturing cooperatives. Today CAMPCO has diverse products. It is now affording product quality with a variety to cater wider section of the market. CAMPCO manufactures and markets a different range of products under its own brand name.

The production and demand for chocolate have been rapidly increasing in India at the rate of 20% during the last 5 years. The average growth is at 20% internal chocolate market, which is now about 5500 tonnes.

CAMPCO at Glance:

The Central Areca nut and cocoa Marketing and processing Co-operative Limited., ‘Varanasi towers’, Mission street Mangalore-575001

1

Full Name of the

Organization

The Central Areca nut & cocoa Marketing and Processing Co- Operative Limited.

2

Status

A co-operative society registered under the multi state co-operative society’s act 1984.

3

Area of operation

Karnataka and Kerala states for memberships. No limits for marketing

4

Main Objective

Procurement/Processing/Marketing of areca nut and since 1980 cocoa/cocoa products

5

Date of Registration

11-july-1973

6

Date of commencement of Business

12-november-1973

7

Registered Office

Varanasi Towers at Mangalore

8

Brand Name

CAMPCO

9

Type of Ownership

Semi-Government

10

Date of entry into Chocolate

March/April 1987

11

Authorized share capital

Rs.50 crores (as on 31 march 2010)

12

Paid up share capital

Rs.20.53 crores (as on 31 march 2011)

13

Number of Branches & Depots

189(all over India)

14

Number of individual grower members

105919

15

Number of member co-operatives

541

16

Deposit as on 31-Mar-201

Rs.398.78 crores

17

Industries Owned

The CAMPCO Chocolate Unit, Puttur

The Copper Sulphate Manufacture Unit at Sagar(Shimoga)

18

Location

Kemminje, Puttur

19

Type of Organization

Co-operative Society

20

Number of Employees

237+130 workers appointed on contract

21

Production Capacity

8800MT

22

Bankers

Syndicate Bank- consortium leader

Canara Bank

State Bank of India

Indian Overseas Bank

23

Sanctioned drawing limit with bankers

Rs.130 crores

24

Net profit during the Period

Rs.11.74 crores(areca)tentative

25

Number of Shifts

6am-2pm

2pm-10pm

10pm-6am

Main Objectives of CAMPCO ltd,.:

To procure arecanut and cocoa of the members and it necessary from the growers.

To arrange for the sale of arecanut and cocoa and their produces to the best advantage of the members.

To undertake processing of arecanut and cocoa and co established industries for the manufacture of finished and semi-finished products for arecanut, cocoa and other products desired.

To advance loan to its members on pledge of goods.

To open branches and acquire constant department godowns, showrooms, factories etc,. and close them if found net viable.

To arrange for procurement manufacture and distribution of pesticides, fungicides, fertilizers etc.

To undertake pooling, packing and standardization of arecanut and cocoa.

To supply market intelligence under technical guidance to the members.

To act as an agent a behalf of state and central or any concern for manufacture procurement, supply and distribution.

b. NATURE OF THE BUSINESS CARRIED BY CAMPCO.

The Central Areca nut and Cocoa Marketing and Processing Co-operative Limited (CAMPCO) was registered on 11th July 1973 under section 7 of the Karnataka Co-operative Societies Act 1959 read with section 4(2) of the multi unit Co-operative Societies Act 1942 and subsequently it has amended its byelaws and the same are registered under the Multi State Co-operative Societies Act 1984. Under certificate No.L/11016/42/87/L and is dated: 8-121988. The main activity of CAMPCO is procuring and marketing of Areca nut and also manufactures chocolates.

Features of the CAMPCO Chocolate Factory

Following are some features of CAMPCO Chocolate factory:

The Chocolate factory is a Co-operatively owned organization and maintained by CAMPCO.

The factory is the largest in south-east Asia.

The factory is one of the most modern in the world.

The factory is equipped with the latest technology and machineries, imported from five firms of 4 European countries.

The factory is equipped with service installed by the best firms in India.

The factory is designed by well experienced and expert architects and consultants.

The factory is situated in an industrially backward rural area in the midst of Cocoa growers.

It generated employment for more than 200 personnel.

VISION, MISSION AND QUALITY POLICY:

Vision:

CAMPCO is a fine and successful implementation of the vision and values of all the great founders of this country.

"CAMPCO is formed to help the farmers, procuring more and more areca nut and cocoa, and then utilizing these materials in a better way which will help the farmers to get market for their products."

To open atleast one sales depot in each state.

To enter the retail market for arecanut and products like supari, pan masala, etc., by establishing units.

To maximise output without sacrificing quality, reducing the cost, improving the efficiency, etc.,

Mission

A mission statement is a brief description of a company’s fundamental purpose. A mission statement answers the question, "Why do we exist?"

The mission statement articulates the company’s purpose both for those in the organisation and for the public.

Mission statement of the company is

"Co-operation between people

Harmony between faiths… may

The fragrance of peace prevail forever"

QUALITY POLICIES

HACCP (Hazard Analysis Critical Control Point) is a quality policy which is used for food safety. Food safety is the top concern among food processors for very good reasons. It is critical for corporate survival and success. If there is a significant safety failure, excellence in other areas of corporate management will be wiped out and the company will loose on

• Regulatory Compliance

• Vendor Certification

• Supply Chain Performance and Contract Fulfilment

Corporate Value

d. PRODUCT PROFILE

The product of CAMPCO is chocolate. A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. The chocolate products are classified into Moulded, Enrobed, Éclairs and Drinking Chocolate.

Moulding is the casting of liquid chocolate into moulds (metal or plastic) followed by cooling and remoulding.

Enrobed is a process of coating a centre with chocolate which is other confectionery based material so as to allow the coating to flow over the shape in a controlled manner.

Éclairs is a modified toffee containing an outer shell of caramel with a centre filling usually chocolate, chocolate creams etc.,

Drinking chocolate can be prepared by following ingredients sugar, cocoa powder, glucose, vitamin C, lecithin, salt.

Types of company products available in market:

CONSUMER PACKS

INDUSTRIAL PACKS

Melto – 27 & 8 gms

Cocoa Mass

Cream - 27 & 8 gms

Cocoa Butter

Turbo – 18 gms

Cocoa Powder

Treat – 18 & 6 gms

Chocolate Mass

Megabite – 18 gms

Choco Paste

Campco Mini bar – 7 gms

Choco Chips-Milk

Eclairs – 380 gms & 1.71 kg jar

Choco Chips-Dark

Playtime – 8 gms

Dark Chocolate

Winner (jar) – 500 & 200 gms

Premium MMilk Choco Paste

Krust – 18 gms

Milk Choco Dip

Funtan – 18 gms

Funda (3 flavours) – 200 gms

Melto Eclairs – 1 kg jar & 480 gms pouch

e. AREAS OF OPERATION

Area of operation in Global / National / Regional:

GLOBAL

CAMPCO produces wide range of cocoa based products of consistent quality, colour and flavour to satisfy the wide spectrum of customers all around the globe. The company has built a strong system base for the confectionery of chocolate industries in U.S, Australia and Malaysia. Export on the other hand generated a total of about U.S $14 million over a 5 year period. Among the leading buyers were Malaysia, Korea and USA.

NATIONAL

The company has various nationalized branch offices throughout India under them are the distributors followed the dealers who sell the goods to the ultimate consumers.

National Office throughout India

NORTH

SOUTH

WEST

EAST

Chandigarh

Bangalore

Ahmadabad

Calcutta

Jaipur

Hubli

Mumbai

Cuttack

Ghaziabad

Cochin

Indore

Patna

New Delhi

Madras

Nagpur

Lucknow

Hyderabad

Jammu

Chennai & Goa

REGIONAL

The company has regional office throughout Karnataka. It has both dealers and distributors. The regional officers located at Karnataka are in Mangalore, Puttur, Birur and Sullia.

OWNERSHIP PATTERN

The management of the CAMPCO company factory is under the BOD. There are 17 directors. The members elect 2 directors, 6 from the Karnataka Government and 6 from Kerala Government.

The Managing Directors are appointed by the govt. of Karnataka and the Secretary is appointed by the govt. of Kerala.

Two committees have been constituted. The day to day activities are conducted by the Managing directors. The executive committee has been constituted. The executive committee and the financial and the business committee devote more time to check and decide about the financial and business transaction of the factories.

Information on Committees

Table showing information on committee

EXECUTIVE COMMITTEE

BUSINESS COMMITTEE

President

President

Vice President

Vice President

Managing Director

Managing Director

Two Directors from each State

Two Directors from each State

The senior most officer of the Areca Marketing

The Head of the CAMPCO Chocolate factoty

BUSINESS COMMITTEE:

The business committee consists of president , VP, MD, two directors from each state of Karnataka and Kerala, out of whom one each should be representing arecanut and or cocoa marketing co-operative societies and the senior most head officer of the areca marketing and head of the CAMPCO chocolate factory. The Quorum of meeing is 5 and it meets at least once in every 2 months.

SECRETARY:

CAMPCO has a secretary appointed by the govt. of Kerala as well as govt. of Karnataka. The secretary may be appointed by the BOD. He is directly responsible for the day to day administration of CAMPCO company.

EXECUTIVE COMMITTEE:

There is an executive committee consisting of President, Vice President, MD and two govt. nominees from each states. The directors representing "A", "B", and "C" class members.

The current President of CAMPCO is Mr. S.R. Rangamurthy, Vice president is Mr. Sri Krishna Bhat and the MD is Mr. P.Madhusudhana Rao.

MEMBERSHIP AND SHARECAPITAL:

There are 4 types of members or share in CAMPCO

CLASS OF SHARE

ISSUED TO

ARECA

MARKETING

SOCIETY

NUMBER

OF

MEMBERS

SHARE AMOUNT

A

Areca marketing society

548

68,39,000

B

Societies and Banks

3

102000

C

Grower members

111680

19,83,52300

D

Government

Nill

Nill

g. COMPETITORS INFORMATION

CAMPCO has competitors such as Cadbury, Nestle, Parrys, Nutrine and Amul. The CAMPCO has been unable to achieve the volume growth targets because it has losing market share. Cadbury continues to dominate the chocolate market with about 70% market share and Nestle has emerged as a significant competitor with about 24% share.

h. INFRASCTUCTURAL FACILITIES

Different plants owned by the CAMPCO

1.Chocolate Factory:

CAMPCO has established one chocolate factory unit in Puttur. The CAMPCO entered the chocolate market in 1986. A name associated with giant co-operative engaged in processing and promoting of arecanut and cocoa in Karnataka and Kerala, today with potential and advanced technology. The production and demand for chocolate have rapidly increased in India during the recent years.

2.Copper Sulphate Factory:

CAMPCO has been established one copper sulphate unit with 300 MT capacity per year at Sagar to meet the requirements of its member grower.

3.Research & Development

The first step towards research was on 20.5.1998. A research and development trust with Dr.D.Veerendra Hegde as its president and Campco president as the managing trustee has been established.

4.Mobile procurements unit:

Services have been provided to the farmers. They have started a mobile procurement unit at Teertahalli to concentrate the interior areas where there is no adequate transportation facility. The mobile van on notified day will go notiied place and facilitate the arecanut growers to sell their products.

Welfare facilities for staff:

1. Sitting facilities:

In the production department, workers have to stand for long hours while working. Therefore the company provides sitting facilities like rest room.

2. Drinking water:

The Factory Act,1948 lays down that there should be drinking water near the place of work. So the company also adopted and provide this welfare programme,.

3. First Aid application:

Campco provides the irst aid box whenever it is needed for the minor injuries to the labourers.

4. Safety:

The important factor while handling the machinery, tools and equipments is the safety of workers. The company provides the worker proper training program regarding the use of safety apartments. The accidents problems are low in Campco because of this training program of handling machines. If the any accidents occur, the company bears the hospital expenses.

5. Canteen, Toilet and washing facility:

The company provides these are all facilities because for the welfare of workers and for also procuring a good resource like workers for the accomplishing the organisational goals. Company provides the facilities like wash rooms and hand drives so as to avoid moisture, toilet rooms and canteen facilities for the food and refreshments.

ACHIEVEMENTS/AWARDS:

Best Export Award 2004-05 for processing of CAMPCO chocolates.

Best Export Award 2004-05 for processing of Areca nut.

It has achieved success towards adopting fully automated machines for the production process

j. WORK FLOW MODEL (END TO END)

GROWERS

WHOLESALER

DIRECT RETAIL TAX

SALES DEPOTS

SELLING REPRESENTATIVES

AGENT SOCIETIES

PROCESSING CENTRE OF CAMPCO

RETAILER

CONSUMERS

SEMI WHOLESALER

In this system, growers sell their product either to CAMPCO or to the agent societies. The procuring centers of CAMPCO are selling through representative, Sales Depots and Direct Retail Sales. These sales depots trade CAMPCO products to wholesalers. These wholesalers trade to semi-wholesalers, semi-wholesalers to retailers and finally retailers sell to the ultimate consumers.

The production process of CAMPCO Chocolate factory is a continuous process which is divided into

1. Cocoa Processing

2. Chocolate Processing

COCOA PROCESSING

The CAMPCO chocolate factory collects only the dry cocoa beans. The wet beans are fermented and dried in the sales depots. There after processing begins:

Cleaning:

After getting the dry beans it is very important to clean them before processing. There is a seven varying meshes, rushes, airlifts and magnetic separators this helps to remove the stones, fibre, grit and immature beans.

2. Roasting

This is the second step where the beans are roasted im a roaster, which helps in reducing the reducing the moisture of the beans after which they are sent for winnowing.

3. Winnowing

Here bans get separated here the shell is separated from the miner part called the "nib" which is important for the manufacturing of a chocolate. The wet beans are dried with the help of winnowing machine.

4. Alkalization

The inner part of cocoa beans the "nib" is passed through the alkalization section with 5 to 6 degree Celsius. In order to neutralize the nibs it is sent to alkalization reactor. In this reactor, cocoa bean is alkalized with sodium and potassium of a certain percentage. After the alkalinisation process is oer, cocoa liquor is produce. The cocoa nib used in chocolate manufacturing is not required to be neutralized, so the nibs from the winnower are directly passed to the primary and secondary driers.

5. Nib ginning (milling)

This work is done in 2 different stages, namely primary and secondary driers. Forst with pin mills, rough cocoa liquour is obtained and then the cocoa liquor is then stored at 100 degree centigrade to remove the remaining moisture.

6. Liquor Processing/Hydraulic Processing

At this stage the hot cocoa liquor is fed into the machine and pressed and the cocoa cake is separated from the cocoa fat called the cocoa butter. The cocoa cake is separated and is powdered off into cocoa powder cocoa cake and cocoa powder are produced,

CHOCOLATE PRODUCTION PROCESSING

1. Preparation of ingredients

The two ingredient cocoa nibs and sugar must be pulverized either before mixing or by using a machine with a combined grinding and mixing action. Sugar is ground into a fine powder. Cocoa butter and fats are liquefied. Particularly butter milk powders should not be stored in the open and should be used as soon as possible after delivery. In some cases milk powder and cocoa powder may be further dried before mixing.

2. Mixing

Mixing is dne to produe a chocolate paste of rough texture and plastic consistency. The right consistency is obtained by experiments and after which standard recipe is established for mixing process.

3. Refining the mixture

It is an important operation and produces the smooth texture so desirably in confectionery. The main function is homogenizing of all ingredients.

4. Conching

This process is essential for the development of final texture and chocolate flavour. It helps in the conversion of powdery refined product into a suspension of sugar, cocoa and milk powder particles into a liquid phase of cocoa butter 3 phases

a. Dry phase

b. Pasty phase

c. Liquid phase

5. Tempering

Tempering is the important processing step during the production of chocolates. This process ensures that the cocoa butter constituents are seeded and that the chocolate is set in its stable condition with good permanent colour and gloss. This process involves cooling down the chocolate with continuous mixing to produce stable cocoa butter seed crystals and distributing theses throughout the mass of liquid chocolate and heated in 50 degree centigrade to ensure the complete melting of the fat. This method chocolate is then cooled and mixed to induce crystallisation. Mixing is continued till it reaches 27 degree centigrade and further heated to raises the temperature by 1 degree centigrade. At this point both stable and unstable polymorphic forms are crystallised ad a thick "mush" is formed.

6. Molding

In this process the chocolate mass is deposited into moulds, they are subjected to shakers to reduce the air bubbles.

7. Cooling

This process is done by forced air cooling at mild temperature at 8 to 10 degree centigrade. This packing room conditions are at 20 degree centigrade. In this cooling stage the chocolates are cooled at 10 degree centigrade temperature.

FUTURE GROWTH AND PROSPECTS

CAMPCO has a better scope for expansion of its activities in relation to different units like areca nut, cocoa in order to safeguard and strengthening of CAMPCO function more effectively

.

• It has a target open at least one sales depot in each state.

• It proposes to enter the retail market for areca nut and products like "supari", "panmasala" etc by established units.

• CAMPCO is thinking of starting its own bank called CAMPCO bank, to provide banking services to the company.

• The future plan about production is to maximize output without sacrificing quality, maximum quantity control, reducing the cost, improving the efficiency etc

. • They also now introduced a new product like a small products to Amul Ltd, winner, bar,

coated bars with different flavors, chocolates.

• CAMPCO also planned to increase its sales by advertisements.

• Capture international market by latest technologies.

• Conducting marketing research for knowing consumer tastes.

• Enlargement of transportation and ware housing facilities with safety precautions.

• Improved qualify of wrappers of CAMPCO chocolate which are not up to the mark.

COMPANY PROFILE WITH REFERENCE TO THE McKENSEY’S 7-S MODEL

According to Tom Peter and Robert Waterman, organization change is not simply a matter of structure, although structure is a significant variable in the management of change. The successful execution of a strategy required the right alignment of seven vital inter-connected activities and processes within an organization, namely

1.Structure

2.Strategy

3.System

4.Style

5.Staff

6.Skills

7.Shared Values

Junior Assistant

Junior Assistant

Junior Assistant

Junior Assistant

BOARD OF DIRECTORS

PRESIDENT

MANAGING DIRECTOR

GENERAL MANAGER

ACCOUNTING

MARKETING

HR

DGM

DGM

DGM

DGM

AGM

CM

SM

Officer

Special

Officer

Deputy Officer

AGM

AGM

AGM

CM

CM

CM

SM

SM

SM

Officer

Officer

Officer

Deputy Officer

Deputy Officer

Special

Officer

Deputy Officer

CHOCOLATE

ARECANUT

Special

Officer

Special

Officer

STRUCTURE

The structure is the skeleton of the whole organization. It describes the formal relationship among various positions and activities. It provides information about who reports to whom and how tasks are both divided and integrated. And also CAMPCO follows functional organizational structure

ORGANIZATION AND MANAGEMENT

The management of CAMPCO vests in the boards of directors consisting of 17 directors. These directors are elected or nominated as per the provisions of Bye laws. The managing director is appointed by the Government of Kerala. The day today activities are conducted by the managing directors. The Executive committee and Business committee will devote more time to scrutinize and decide about the financial and business transaction of the factory.

There is one or two legal advisors as well as one of the directors is the nominee of IDBI to facilitate and make the management more effective. Two committees have been constituted. They are as follows;

The Executive Committee

President.

Vice President

Managing directors

Two directors from each state.

Business Committee

President

Vice President

Managing directors

Two directors from each state (Karnataka and Kerala)

Two senior most officers for ARECA marketing.

The Head of CAMPCO Chocolate factory, Puttur.

Production Department

The production department is headed by production manager. Under him/her there are supervisors to look after the production activities. The production activities are in three shifts by rotation. The packing supervisors also come under the production department. The supervisors supervise the work of packing department and personnel work under piece rate system.

Administrative Department

The administrative department looks after the day-to-day administration activities of the factory. At the top level there is an administrative manager. Normally the General Manager carries over day-to-day administrative activities in the factory.

Personnel Department

Personnel management deals with the human aspects in an organization

undoubtedly; people are most complete factor in an enterprise or organization. Main objective of this department is to maintain the quality standards, work level and satisfactory level of production and also to develop the procedure to help to select the right person for right job.

Quality Control Department

The quality control department is headed by the quality control manager. Under him/her there are three supervisors. In this department there is 1 microbiologist. There are few technical assistants to help the microbiologist in his work. They check the quality of raw materials and also the quality of the products after production.

Membership of CAMPCO

There are five different types of shares; class A, B, C, D and E issued to different class of people.

‘A’ class is open to agricultural produce market.

‘B’ class is open to agriculture produce market committee of Areca and Cocoa growing areas, co-operative marketing and consumer federation, any other multi-state co-operative society or any corporation owned or controlled by the Government.

‘C’ class is open for individual growers of Areca nut and Cocoa in both the states.

‘D’ class is open for State Government and Central government and NDC.

‘E’ class is merchants and agents who have business in connection with CAMPCO.

SKILLS

The Mckinsey’s 7-S framework considers skill as one of the important attributes or capabilities of an organization. The term skill includes those characteristics which most people use to describe a company.

CAMPCO chocolate factory includes skilled staff and workers in its operations and productions who are expert in their own field. Administrative officer have code knowledge and skill in their particular field, it is preferable to have master degree in their work. Machine operators of different department have wide knowledge and skill about operations and handling of machines, chocolate manufacturing process etc. if the selection of skilled worker is done properly then it will result on effective operation of the manufacturing process, administration etc. CAMPCO also follows technical skills, innovative skills, communication skills.

In CAMPCO all new recruits (both technical and managerial) are provided "on the job-training method". Under this training method, the individual is placed on a regular job. It has the advantage of giving first-hand knowledge and experience under the working condition.

STYLE

Organizations differ from each other in their styles of working. The style of an organization is evident through the pattern of actions taken by the top management over a period of time. But, the Mckinsey’s framework considers styles as something more than the style of top management. CAMPCO follows participative style of management. Participative style of CAMPCO helps in the processing and marketing of chocolates also. Each and every department take decisions together which help the company to take the steps in their daily transaction or operations.

STRATEGY

Strategy is the set of decision and action plans aimed at gaining a sustainable competitive advantage. In the case of CAMPCO chocolate factory, the strategy is to produce and sell standard and good quality chocolates with well guided procedure and good quality of raw materials from different supplying company with a quality check to deliver the products to the customer. Strategy includes objectives, goals, purpose and policies, action plans and tactics.

The objectives are:

• To procure areca nut and cocoa of the members and if necessary from other growers.

• To undertake processing of areca nut and cocoa and to establish industries for the manufacturing of finished and semi-finished products from areca nut and cocoa.

• To open branches and depots, go downs and factories.

• To arrange for procurement, manufacture and distribution of pesticides, fertilizers etc.

• To undertake pooling, packing and standardization of Areca nut and cocoa.

SYSTEMS

Systems in the 7-s framework refer to all the rules, regulations, methods and procedures (both formal and informal) that complement the organizational structure.

CAMPCO is fully mechanized plant. The function of production control in products of the productions parts, products of required quality and quantity at the required time and also provides feedback to the production department and allocates or uses the resources available to achieve the objectives. The production planning is valued on the factors of designing of products that determines the equipment, capacity etc.

In CAMPCO chocolate factory various systems have been installed in each functional areas so as to enhance the level of interaction and coordination thereby, in order to improve the overall organizational effectiveness. Some of these systems include:

Quality Control System

In CAMPCO, production is carried quickly according to quality standards. The quality of product manufactured is of international standards. The function is to check the quality of raw materials and also the quality of products after production.

Performance Appraisal System

In CAMPCO the performance appraisal work is done in a special way. At the end of the year a report known as ‘Confidential report’ is prepared by each and every departmental head. This report contains each and every information relating to a particular worker working in a particular department. This report is then submitted to the higher authority for evaluation.

STAFF

Staffing is referred as human resource of an organization where they contribute to the fullest extent to achieve the organizational goal within a stipulated period. Staffing represents the development of employees in terms of selections, placement, training, promotion and performance etc. It includes processes to develop in them the abilities and skills that they need to be effective and efficient.

In CAMPCO strength of the staff is 237 permanent and 130 contract based employees who are headed by Deputy General Manager and under him there are 6 assistant managers for each department. Each and every staff is well educated and trained in their particular area of work assigned to them.

Staff is classified into 4 levels. They are Strategic level, Management level, Operating level and Technical level. The duties and responsibilities of staff in CAMPCO chocolate factory are shown in the table.

Labour Welfare Measures

CAMPCO provides good facilities to its employees such as bonus, dearness allowance, provident fund, gratuity, yearly increment, medical allowance and welfare measures etc.

Duration of Work

In the CAMPCO chocolate factory, there are four shifts including the general shifts. The normal hours of work are 8 hours. The timings of 4 shifts are as follows.

Shift Timings

Shift - 6 am to 2 pm.

Shift - 2 pm to 10 pm

Shift - 10 pm to 6 am

General shift – 9 am to 5.30 pm

SHARED VALUES

Shared values refer to set of beliefs, views, opinions value and aspiration of the employees that goes beyond the formal statement of corporate objectives.

In CAMPCO all employees share the same guiding values and responsibilities for particular task, provided to them. Chief Executive gives responsibility for each department about the task. It also maintains quality consciousness.

SWOT ANALYSIS

The diagnosis of the firm’s strength and weakness can be fruitful only if the environmental factors and market conditions are considered keeping in mind the internal capabilities of the company. This approach essentially involves matching the internal capabilities with the environmental opportunities and threats.

STRENGTH

1. Large Product Mix.

One of the strength of the CAMPCO limited is large product mix. The CAMPCO produces the different type of chocolates that is Melto, Cream, Turbo, Treat, Megabite, CAMPCO bar, 4 ever, Krust, Éclair 2000 etc.

2. Largest chocolate Factory in South East Asia.

CAMPCO is the largest factory in south Asia. This statement can be used to attract more clients.

3. Highly Committed Employees.

4.Good Infrastructure

5. Advanced machineries

WEAKNESS

1. Lack of Promotional Activities.

The CAMPCO chocolate factory is not promoting its products in an effective way through media advertising. Poor marketing effort to push the product in the market.

2. Suffering from huge loss.

The CAMPCO chocolate factory has made huge loss for the past several years.

3. Inefficient Utilization of the Capacity.

The actual capacity of the CAMPCO chocolate factory is 8800 metric tonnes. But the factory has not been able to make use of the full capacity.

4. Inefficient Product Quality.

The chocolate products are to be placed in a required minimum temperature. If it is not preserved in a required temperature, the quality of the product will be affected.

OPPORTUNITIES

1. There is a large market for chocolate which is untapped in India.

2. Expanding the existing product mix can lead to increase in market share

3. Greater product awareness can be brought about within all age group showing chocolates as the best gift to friends and relatives.

4. Popularity can be gained through the social service in the backward areas of south India.

THREATS

1. There is a severe competition from multinational companies such as Cadbury and Nestle.

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2. Frequent changes in Government rules and regulations and tax policies.

3. Competition from local players such as Amul.