PROJECT REPORT ON

EURO INDIA FRESH FOODS Pvt. Ltd.

AS A PART OF
PARTIAL FULFULLMENT OF
MBA

SUBMITTED BY:
CHARU JAGWANI

BATCH:
MBA 2014-16 (BLOCK-II)

MODULE:
MANAGERIAL ACCOUNTING

MODULE LEADER:
MRS. MEGHNA DANGI

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ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my guide (Mrs.
Meghna Dangi) for her exemplary guidance, monitoring and constant encouragement throughout
the project.
I am obliged to my batch mates for the valuable information provided by them in their respective
fields. I am grateful for their cooperation during the period of our assignment.

--Charu Jagwani

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TABLE OF CONTENTS
TOPIC
INTRODUCTION
COMPANY PROFILE
VISION & MISSION
PRODUCT LINE
LIST OF COSTS
BREAK EVEN
BUDGETING TECHNIQUES
COST CONTROL TECHNIQUES
PURCHASE DEPARTMENT
PRODUCTION DEPARTMENT
CONCLUSION
REFERENCES

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INTRODUCTION
It was the brainchild of Late Shri Jivanbhai Sansapara who was the head Sahil Star Group, a
company that deals in manufacturing, exporting and importing diamonds, that helped create a
brand of FMCG snacks and juices named Euro India Fresh Food Pvt Ltd. The company is now
looked after by his kin, Mr. Manhar J. Sanspara, Mr. Dinesh J. Sanspara, Mr. Jayanti J. Sanspara
and Mr. Mahesh V. Mavani.
The founders of Euro India Fresh Foods Pvt. Ltd. are also into the business of real estate in the
state of Gujarat, India.
Euro India Fresh Foods Pvt Ltd. is an Indian based snack food manufacturer. The products
manufactured by us are tailor made to suit the Indian palate. Our product ranges from a wide
variety of flavored chips to beverages. Some of our products include, Euro Chips, Euro
Namkeens, Euro Getmore, Euro Wheels, packaged drinking water Euro Spa, Euros mango drink
Fresho and lemon based drink Euro Lemoni.
Here at Euro, we ensure that we make snack foods as healthy as possible. Refer to the Health
Funda page to see how we are a healthier option as compared to the rest. Euro India Fresh
Foods Pvt Ltd. is an ISO 22000:2005 certified organization which is swiftly capturing the
market. We hope to become a leading FMCG company with the snacks, mineral water & fruit
juices that we manufacture.
We have also collaborated with Walt Disney and brought out snack foods that will make the kids
go crazy. They include Euro Ringoli, Euro Bubbles and Euro Funfill. Whats more is, each of
these packets have a little surprise in the form of attractive collectibles which will definitely
appeal to children.

COMPANY PROFILE

Mr. Manhar J. Sanspara CMD (Chairman and Managing Director)

Mr. Dinesh J. Sanspara MD (Managing Director)

Mr. Jayanti Sanspara (Executive Director)

Mr. Mahesh Mavani (Director)

Dr. Mukesh Navadiya (CEO)

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Mr. Manhar J. Sanspara CMD (Chairman and Managing Director)

Founder of Sahil Star Group and Chief Managing Directors in Euro India Fresh Food Pvt. Ltd.
has gained 25 years of experience in diamond industry. At present he is involved in strategic
business decisions pertaining to his FMCG Company and also looks after the overall
management of the group along with manufacturing of diamonds. He is also committed to social
responsibilities by way of various Medical. Educational & many other Trusts

Mr. Dineshbhai Jivanbhai Sanspara (MD)

Young, energetic and talented personnel designated as both partner of Sahil Star Group and
Managing Director in Euro India Fresh Food Pvt. Ltd. He has also gained experience of more
than 20 years in diamond industry and handles overseas buyers of diamonds and finance
department in the group. He aims at making Euro India Fresh Food Pvt. Ltd. top FMCG player.

Mr. Jayantibhai Sanspara (Executive Director)

He has been controlling and executing his role as the Executive Director of Euro India Foods
from Belgium Known for his enthusiastic and energetic approach towards work also has his
control over the proceedings of JR DIAM. He, with his qualified & capable expertise has taken
the charge of both the ventures flawlessly.

Mr. Mahesh Vallabhai Mavani (Director)

He is designated as both partner of Sahil Star Group and Director at Euro India Fresh Food Pvt.
Ltd. Having attained 15 years experience in Diamond Industry he is all set to use his expertise in
making Euro India Fresh Food Pvt. a leading FMCG company.

Dr. Mukesh Navadiya (CEO)

Having passed his BAMS from Gujarat Ayurveda University, Jamnagar he is also practicing
doctorate and is now associated with Euro India Fresh Food Pvt. Ltd. as its Chief Executive
Officer. He takes care of all the workings of the company and implementation of the project.

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VISION AND MISSION

Vision

To be one of the leading brands in FMCG industry

To be the most innovative company in the business

To make hunger satisfying products for every class of buyers

To be ranked highest in taste and varieties

Mission

To make products that deliver value for money

To keep on delivering, mouth savoring healthy snacks and beverages for years to come

To grant premium quality products and receive customer satisfaction

PRODUCTS MANUFACTURED
Euros Chips are fresh and crispy snack foods. They are made by selecting similar sized potatoes
of finest quality which are first taken for wash and later for manufacturing process. Throughout
the manufacturing process chips are untouched as it is made using modern manufacturing
techniques. Even the packaging process is fully automated and each packet is nitrogen filled to
ensure that the chips stay fresh and crispy for longer period of time. The variety of flavors
manufactured by us focuses to satisfy Indian palate. Have a look at the range of potato chips that
we offer at Euro Fresh Foods Pvt Ltd.

Chilli Achar

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Classic Salted

Cream Onion

Masti Masala

Mint Lemon

Pepper Attack

Tingling Tomato

EURO NAMKEEN
Have a few guests or just want to pick something, to munch on? Want to serve some munchies
with drinks? Nothing better that serves you better than some few quick bites of Euro Namkeens.
From something that is spicy to something sweet , that leaves a lasting taste. The varieties
promise everything you need to delight yourself or your guests. We serve in a wide range of
flavored Namkeens including: Chana Dal, Aloo Cheese Sev, Bikaneri Bhujia, Tasty Peanuts,
Shahi Mixture, Moong Dal, Navratan Mixture, Khatta Meetha, Aloo Tomato Sev, Aloo Pudina
Sev, and Ratlami Sev.

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Chana Dal

Aloo Cheese Sev

Bikaneri Bhujia

Tasty Peanuts

Shahi Mixture

Moong Dal

Navrati Mixture

Khatta Meetha

Aloo Sev

Aloo Pudina Sev

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Ratlami Sev

EURO FARALI
Euros Farali is a category that has been introduced particularly for those Indians that observe
religious fasts or for those who would like to have some diet food. These products are made with
a tinge of Sindhav Salt added to them, thus making them suitable for fast observers. The array
of Farali products includes, Potato Wafers, Kela Wafers, ChiwdaTikha, Chiwda Mitha.
Chiwda Meetha

Potato Wafers

Kela Wafers

Chiwda Tikha

EURO DISNEY
Euro collaborated with Walt Disney to pamper the kids with yummy snacks and exciting
goodies. Funfill caters to the taste buds of children with its creamy fillings. These are corn filled
snack with cream filling which are healthy for children as they are baked and not fried. Funfill is
a unique delicacy that has been introduced in the family of snack foods. Each packet has a little
collectible inside that will cheer the kids up and make them want more. So do not miss the
chance to see your kid smiling after he or she opens this packet. We have four flavors that will
make kids go gaga over it. They are: Chocolate, Strawberry, Vanilla, and Black-Current.

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Black Current

Funfill Chocolate

Funfill Strawberry

Funfill Vanilla

RINGOLI
Ringoli from Euro is a different kind of snack, a snack with a hole! Every bite will give you a
crispy and crunchy experience accentuated with its unique flavor. We offer these rings in three
flavors: Cheese Rings, Masala Ring, and Tomato Rings.
Euros Bubbles is another product that we have made for the kids. Its creative 3D packaging
attracts the children even more. They are light, flavored balls that are difficult to stop munching
once you start. Its crunchy sound echoes in your ears and lures you to get some more. So waste
no time and juggle some in your hand and some on your tongue. These balls are available in
three flavors, namely: Cheese balls, Masala balls, Tomato balls

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Tomato Rings

Cheese Rings

Masala Rings

Bubble Cheese

Masala Ball

Tomato Balls

EXTRUDED SNACKS
Euros Getmore is tastier, crispier and yummier of all the extruded snacks available. Every crispy
crunchy bite will surprise you with its extraordinary taste. All these crispy chips have been
manufactured with utmost care and under very hygienic conditions. These flavours are very
different and will make it tough for you to resist. Each time you finish a packet, you would feel
like running to the store to GETMORE. The flavors that we offer in Euro Getmore are:
Tingling Tomato, Chatpata Masala, Green Chutney

Green Chatni

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Tingling Tomato

NEW UPCOMING TRY ANGLES

EURO Magic Fun-Fill is the unique delicacy introduced for the very first time in the family of
Snacks Food. This amazing snack is one of its kinds. The crme is extracted from choicest of
mangoes & strawberries to give a very original and Fresh Taste. Every bite of it will take you to
the tour of creamy delight.

LIST OF CUSTOMERS

Big Bazaar

Dhiraj Sons

General & Provisional Stores

LIST OF COMPETITORS

Euro Foods

Uncle Chips

Parle Agro

Balaji

Other local brands

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LIST OF COSTS WITH CLASSIFICATION

Cost Classification

Non- Manufacturing
Costs

Manufacturing Costs

Direct Labor
Manufacturing
Overhead

Direct
Material

Variable
Manufacturing
Overhead

Selling

Administrative
Costs

Fixed
Manufacturing
Overhead

MANUFACTURING COSTS
Manufacturing cost is the expenditure incurred in carrying out the production processes of an
organization. The manufacturing cost includes direct costs, for example, labor, materials, and
expenses, and indirect costs, for example, subcontracting and overheads.
The costs identified as manufacturing costs in the production of Euro Foods are as follows
1. Direct Materials
The materials that go into final product are called raw materials

Potato

Oil

Seasoning (flavour)

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Film (packet)

Carton

2. Direct Labour
The term direct labor is reserved for those labor costs that can be essentially traced to individual
units of products. Direct labor is sometime called touch labor, since direct labor workers
typically touch the product while it is being made. Direct labour includes worker working in

Input Department

Peeling department

Washing department

Slicing department

Frying department

Seasoning department

Packaging Department

3. Manufacturing Overheads
Manufacturing overhead, the third element of manufacturing cost, includes all costs of
manufacturing except direct material and direct labor.
Variable manufacturing overheads includes

Electricity

Gas (gas generator)

Nitrogen (N2) flush

Utility expenses

Repairing costs

Maintenance costs

Fixed manufacturing overheads includes

Rental costs (if gas generator is hired on rent)

Transportation costs

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Meals

Depreciation

Indirect labour includes

Labour used in service department

Security guards

Labour in engineering department

Warehousing labour

Labour in quality department

Overtime

Indirect material includes

Food stickers

NON-MANUFACTURING COSTS
Non-manufacturing costs are those costs that are not incurred to manufacture a product.
Examples of such costs are salary of sales person and advertising expenses. Generally nonmanufacturing costs are further classified into two categories.
1. Marketing and Selling Costs
2. Administrative Costs
1. Marketing & Selling Costs:
Marketing or selling costs include all costs necessary to secure customer orders and get the
finished product into the hands of the customers. These costs are often called order getting or
order filling costs. These costs include;

Commissions

Placement costs

Transportation costs (per unit of product is charged)

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2. Administrative costs
Administrative costs include all executive, organizational, and clerical costs associated with
general management of an organization rather than with manufacturing, marketing, or selling.
Examples of administrative costs include executive compensation, general accounting,
secretarial, public relations, and similar costs involved in the overall, general administration of
the organization as a whole. For PepsiCo, Snacks department following costs are identified as its
administrative costs;

Salaries

Office expenditure including furniture and stationery costs

Depreciation costs (offices)

COST CLASSIFICATION ON THE BASIS OF COST BEHAVIOUR

Apart from classifying costs as manufacturing and non-manufacturing costs, costs are also
classified on the basis of their behaviour. These are the

Variable costs

Fixed costs

1. Variable Costs
Variable cost is a cost that varies, in total, in direct proportion to changes in the level of activity.
In case of the manufacturing of Euro Foods a number of variable costs are incurred. The first is
electricity cost. The electricity is generated from gas generators so the gas will also be
considered as a variable cost. Second is the cost of maintenance of the machinery and the entire
manufacturing plant.
2. Fixed costs
Fixed Cost is a cost that remains constant, in total, regardless of changes in the level of activity
within the relevant range. In case of the manufacturing of Euro Foods the fixed costs incurred are

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firstly the depreciation of the fixed assets being used. Second is the cost of the permanent staff.
The transportation cost i.e. cost of transporting potatoes from the farm to plant and then from the
plant to warehouse is also considered as a fixed cost. The rental cost e.g. of the generators that
are used to generate electricity is also fixed cost.
OTHER COSTS
Other costs include the fringe benefits and the extra benefits given to the employees. Fringe
benefits are perks offered to employees in order to keep them motivated and for the purpose of
retaining them.
Fringe benefits given to labour include

Meal

Transportation

Overtime

Extra benefits to higher executives includes (varies with status)

Pay roll

Provident fund

Medical free facility

Transport

Fuel expense

Cell phones (monthly bill of cell paid)

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BREAK EVEN
Fixed Cost = Rs. 10, 00, 00, 000
Desire Profit = 12.5%
Sales to Earn Desired Profit = 85, 00, 00, 000
Sales to Earn Desired Profit = (Fixed Cost + Desire Profit) / P.V. Ratio
(P.V. Ratio = 24%)
BEP = Fixer Cost / P.V. ratio
= 10, 00, 00, 000 / 0.24
= Rs. 41, 66, 00, 000

BUDGETING TECHNIQUES AT EURO FOODS

A budget is a plan expressed in rupee amounts that acts as a road map to carry out an
organizations objectives, strategies and assumptions.
A company might have a master budget or profit plan for the upcoming year. The master budget
will include a projected income statement and balance sheet. Within the master budget will be
operating budgets such as a sales budget, production budget, marketing budget, administrative
budget, and budgets for departments. In addition there will be a cash budget and a capital
expenditures budget.
It is a common practice that the budgets prepared for the next accounting year will be detailed by
quarter or by month. It is also typical that the annual budget will not be changed once the actual
year begins. For managers, a budget is a guide that it not so rigid that it prevents timely action
when needed. In rare circumstances the annual budget might be revised, but only when the
business environment has radically changed.

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OPERATING BUDGET APPROACH

The company uses the operating budget approach in which the budget is made for the whole year
i.e. 12 months from January to December which is reviewed almost every month but it is not the
rolling one to check if there are some variances there are afterwards corrected according to the
current situation.
PARTICIPATIVE BUDGETING APPROACH
The company also uses self-imposed budgeting or participative budgeting approach in which
they ask all the managers from different departments to give their requirements and allocate costs
to their requirements then these requirements are overviewed by administration for budgeting.
For instance, plant manager are consulted for all the overheads because later it becomes very
difficult to knock down the whole process.
BUDGETING COMMITTEE
Budgeting committee is divided into

Control committee

Planning committee

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COST CONTROL TECHNIQUES

1. PURCHASE DEPARTMENT
a) They buy potatoes in bulk, once in a year when prices are low, thereby reducing
the cost.
b) Most of the machinery (80%) has been purchased that have been manufactured in
India and only 20% of it has been bought from China.
c) They also resort to bulk buying techniques for all raw materials that they use in
the manufacturing process.
d) They manufacture the pet bottles in-house (bottles used in juice bottles), thus are
able to cut back on their purchase expenses.
e) One of the techniques used by the company to reduce its costs includes
Opportunity Buying, i.e. they buy in bulk when the market prices of the raw
materials that they require are the lowest and maintain a huge stock of the items.

2. PRODUCTION DEPARTMENT
a) The company has substituted lower cost material wherever possible in their
production line so as to bring down the overall cost of production of potato chips,
without compromising on the quality.
b) Euro Foods Ltd. has been able to reduce their overall wastage to a great extent
which has helped them to cut back on their expenses.
c) The company makes optimum utilization of its labor force by offering them on the
job training, this enhancing their efficiency. This helps the company to operate
with bare minimum workers, thus avoiding the cost of idle labor.
d) The company has employed the latest and most updated machinery in its
production line, hence leveraging upon the economies of scale reducing the cost.
e) The company confirms regular maintenance of all machinery, thereby preventing
any breakdowns and ensuring smooth functioning of the entire process. An
uninterrupted production line is thus able to minimize the overall cost structure.

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CONCLUSION
Euro India Fresh Foods Pvt. Ltd. may be a new player in town, but it is growing in leaps and
bound. Started in 2011, the company has come a long way since then. Today the company is well
known for its extensive product line and the quality that it offers. The company offers best
quality products at the lowest market rate, owing to its highly capital intensive production
process which is equipped with the state-of-the-art machinery which ensures a smooth
functioning of the entire operation. The cost cutting techniques adopted by the company have
worked out well so far, enabling it to offer high quality products at low prices. The company has
major expansion plans in the near future and aspires to become a national brand within a decade.
Considering the current scale of operations, if the company continues on the same path, it has a
very bright foreseeable future ahead.

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REFERENCES

Euro India Fresh Foods Pvt. Ltd.. 2014. Euro India Fresh Foods Pvt. Ltd.. [ONLINE]
Available at: http://euroindiafoods.com/. [Accessed 27 November 2014].

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