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Introduction
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft
Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick
meals. With annual revenues of approximately $50 billion, the combined company is the
world's second largest food company, making delicious products for billions of
consumers in more than 160 countries. We employ approximately 140,000 people and
have operations in more than 70 countries.

In India, Cadbury began its operation s in 1948 by importing chocolates. After 60 years of
existence, it today has five company-owned manufacturing facilities at Th ane,
Induri(Pune) and Malanpur (Gwalior),Bangalore and Baddi (Himachal Pradesh) and 4
sales offices (New Delhi, Mumbai, Kolkota an d Chennai). The corpora te office is in
Mumbai.

Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk
Food Drinks, Candy and Gum category. In the Chocolate Confectionery business,
Cadbury has maintained its undisputed lea dership over the years. Some of the key
brands in India are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations.

Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in
the world! Our billion-dollar brand Cadbury Dairy Milk is considered the "gold standard"
for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian
consumer.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft
Foods and Cadbury creates a global powerhouse in snacks, confec tionery and quick
meals. Currently Cadbury is the world's No.1 confectionery and biscuit company. It is
also the world¶s second-largest food company with sales in approximately 160 countries.
Cadbury Brands

 dbury Di ry Milk

The story of Cadbury Dairy Milk started way back in 1905

at Bournville, U.K., but the journey with chocolate lovers
in India began in 1948.The pure taste of Cadbury Dairy
Milk is the taste most Indians crave for when they think of
Cadbury Dairy Milk.

The variants Fruit & Nut, Crackle and Roast Almond,

combine the classic taste of Cadbury Dairy Milk with a
variety of ingredients and are very popular amongst tee ns & adults. Recently, Cadbury
Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet'
after meals. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk
Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1,
a delightful combination of milk chocolate and white chocolate. Giving consumers an
exciting reason to keep coming back into the fun filled world of Cadbury.

Cadbury Dairy Milk has been the market leader in the chocolate category for years. And
has participated and been a part of every Indian's moments of happiness, joy and
celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian
chocolate market.

 dbury 5 St r.

The Cadbury Temptations range is a vailable in 5 delicious

flavour variants Roast Almond Coffee, Honey Apricot, Mint
Crunch, Black Forest and Old Jamaica. With its international
quality chocolate Temptations soon became a
popular brand for "chocoholics" . In India, Cadbury Dairy Milk
Eclairs has been the most preferred brand in the Eclairs
category for years and has always been a favourite with
consumers. Cadbury Gems occupies a very special place in
the hearts of kids; present and past. Its unique shape, size, colours and format instantly
set it apart. These tasty, colourful, chocolate buttons have become an integral part of the
lives of both children and adults.

 dbury Bytes

Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing
packaged snack market. Cadbury Bytes is a one of a kind snack, in that it is sweet and
not salty, as compared to most of the other snacks. It's a bite sized snack with a crunchy
wafer and rich Choco cream filling. There are three variants of Bytes available in the
market - Regular, Coffee and Strawberry, at two price points - Rs 5 and Rs 10.

 dbury Bournvit

The brand has been an enduring symbol of mental and physical health ever since it was
launched in 1948. It is hardly surprising then, that Bournvita enjoys a major presence i n
the Malt Food market. Given its market share of 17%, Cadbury Bournvita reaches across
hundreds of cities, towns and villages through 3,50,000 outlets in India.

M nuf cturing Process

Cadbury uses flow production to make hundreds of thousands of the same product with
machinery moving each one along a production line. Cadbury also uses batch production
± some machines are set to make different products at different times.

There are two stages in manufacturing food products:

P Prim ry processing ± converting raw materials into "food commodities" or

ingredients (at Cadbury, growing, harvesting and processing cocoa beans to make
cocoa mass).
P Second ry processing ± processing ingredients to make food products (at
Cadbury, processing cocoa mass to make chocolate products).

Cadbury makes two types of chocolate:

 P u
 choco
ate ± Cadbury Da ry u

aunched n 1905

P Dar choco
ate ± Bournv

e
aunched n 1908

Primary processing is the same for milk and dark chocolate, but secondary processing is
a bit different. The recipes have been developed over the years. Chocolate -makers
(Chocolatiers) use their skills to create well -balanced recipes that consumers like.

Prim ry Processing St ge 1

Cocoa and chocolate both come from cocoa beans which grow in pods on cocoa trees
(Theobroma cacao).West Africa is a major producer of cocoa beans, especially Ghana
and the Ivory Coast (Côte d¶Ivoire). Malaysia, Indonesia, the Republic of Cameroon,
Nigeria, Brazil and Ecuador have also become significant producers.

Each cocoa pod contains 30±40 beans covered by a sweet, white pulp. The pods are
harvested (removed from the trees) by hand. Farmers cut the pods from the cocoa trees
with knives attached to poles. The pods are then split open using wooden mallets and
the beans removed and fermented or cured, which helps to develop the beans¶ chocolate
flavour.
After drying, the fermented beans are weighed and packed into sacks for sale and then
transported by ship to Liverpool. Strict quality control tests take place when the cocoa
beans are bought from the farmer s and during transportation to ensure hig h standards.

Prim ry Processing St ge 2

Chocolate is not just ground-up cocoa beans. Raw cocoa beans taste very bitter, and
must be processed before they can be used to make chocolate products.

Cocoa beans arriving by ship in Liverpool are transported to Cadbury¶s purpose -built
cocoa bean processing factory at Chirk, North Wales. Chirk operates 24 hours a day,
seven days a week to process 50,000 tonnes of cocoa beans each year.

When the beans arrive at the factory, they are emptied out onto a moving belt, sorted
and cleaned to remove dust and stones.

The beans move through a continuous roaster (a revolving drum with hot air passing
through it). During roasting, the shells of the cocoa beans become brittle. The cocoa
beans darken in colour and acquire their distinctive chocolate flavour and aroma.

The beans are broken down (kibbled) int o smaller pieces (nibs). The broken shells are
blown away (winnowing). The nibs are then ground down into a thick, chocolate -coloured
liquid called cocoa mass or liquor, which is rich in cocoa butter. This is one of the main
ingredients of all chocolate pr oducts.

Second ry Processing

'M king chocol te'

The following stages take place during the primary processing of cocoa beans needed to
turn them into various chocolate products:

1. Harvesting of the cocoa beans by the grower

2. Fermenting or curing of the beans by the grower
3. Transportation of the beans to the cocoa bean processing factory (Chirk)
 4. Sorting and cleaning the beans at the factory
5. Roasting the beans in a continuous roaster at a temperature of 135°C
6. Kibbling of the beans into nibs
7. Winnowing to remove shells.
8. Grinding the nibs into cocoa mass

After primary processing, secondary processing takes place. Different secondary

processing is needed to make different chocolate products.

The following secondary processing stages take place to make cocoa powder and
drinking chocolate:

1. Removal of about half the cocoa butter from the cocoa mass in heavy -duty
presses leaving a solid block of cocoa (the cocoa butter that is removed is not
wasted ± it can be used to make chocolate)
2. Pulverisation of the solid block of cocoa remaining into a fine, high -grade cocoa
powder
3. Addition of sugar and natural flavourings to make drinking chocolate
4. Addition of malt extract to make malted drinks such as Bournvita

The following secondary processing stages take place to make dark chocol ate:

1. Addition of sugar and cocoa butter to cocoa mass to make a paste

2. Drying of the paste
3. Grinding of the paste with cocoa butter
4. Special mixing and cooling finishing processes (conching and tempering ) take
place, developed to reduce the thickness of the liquid and make sure that the fat
settles in a particular way to make sure the chocolate has a glossy, smooth
texture and appearance
5. Liquid chocolate is poured into bar shaped moulds, shaken and cooled before
continuing along the production line to high -speed wrapping plants.

The following secondary processing stages take place to make milk chocolate:

1. Transportation of cocoa mass to Marlbrook, the milk processing factory

 2. Cocoa mass mixed with liquid full cream milk and sugar, condensed to a rich,
creamy liquid, and dried to produce chocolate crumb
3. Transportation of chocolate crumb to Bournville
4. Grinding of the chocolate crumb with blended with cocoa butter and flavourings.
5. Special mixing and cooling finishing processes (conching and tempering ) take
place, developed to reduce the thickness of the liquid and make sure that the fat
settles in a particular way so the chocolate has a glossy, smooth texture and
appearance
6. Liquid chocolate is poured into bar shaped moulds, shaken and cooled before
continuing along the production line to high -speed wrapping plants.

ountlines
At Cadbury, individually-wrapped, chocolate-covered bars, such as the Cadbury
Crunchie, Boost, Time Out or Double Decker, are called countlines because they are
sold by numbers rather than by weight. Countlines tend to be eaten as a treat. These
products are made by the enrobing method, where the centres pass on a continuous belt
beneath a curtain of liquid chocolate.

Moulded B rs
Moulded bars are made by pouring liquid chocolate into bar -shaped moulds, for example
the Cadbury Dairy Milk range. They may have added ingredients, such as nuts, raisins or
biscuit pieces, and they come in different sizes. Products like the Cadbury Caramel are
made by setting a layer of chocolate in moulds, adding the filling and sealing the base of
the bar with a layer of chocolate.

Assortments
Assortments are boxes of chocolates with a variety of different centres, such as Cadbury
Milk Tray, Heroes or Roses, which are bought as gifts or for sharing. These are either
made by enrobing or shelling. During shelling, liquid chocolate is deposited into a mould
to form a shell. The centre is then put inside the shell, which is sealed.Cream -centred
bars are made by the same process, as are the seasonal n ovelties such as Easter Eggs
and Creme Eggs.
'Processing chocol te'

The following steps are involved in processing cocoa to make chocolate:

1. Cocoa pods harvested by hand

2. Cocoa pods split open using wooden mallets to extract beans
3. Grower ferments and cures the beans
4. Fermented beans are dried then weighed, packed and shipped
5. Beans sorted and cleaned on a moving belt
6. Beans roasted in a continuous roaster
7. Roasted beans kibbled into nibs
8. Winnowing to remove shells
9. Nibs ground into cocoa mass used to make chocolate
 he P ck ging Development Process

At any point, Cadbury will be working on 70 ±80 packaging developments for new
products, new presentations of existing products or product relaunches . Several
departments work closely on this ± e.g. Marketing, Design, Packaging Development,
Product Engineering and Quality Control ± all will have different view points.

P Firstly, the whole team assesses the product¶s packaging needs

P Ideas are also thoroug hly tested to make sure that they can be made using
Cadbury¶s machinery and that they will stand up to handling and distribution
P Designs are fine-tuned until the packaging meets all the requirements
P The material specifications are agreed with the chosen suppliers
P The factory quality control department ensures that quality levels can be met

P ck ging M teri ls

A number of things have to be considered when choosing packaging materials:

 P chocolate is very sensitive to taint (it picks up other flavours and odours easily)
P the packaging comes into direct contact with the product and so must be safe
P many chocolate products can pick up moisture and become sticky
P others lose moisture, dry out and become tough
P wherever possible the materials must be recyclable

A range of different materials are used:

P Paper is used for labels, wrappers, liners and in laminates. Paper may be finished
with grease resistant, wax, plastic film or emulsion treatments
P Board is used to make boxes as it is stiff and can be coated, laminated, treated
and printed to change and improve the way it looks
P Traditional plastics
P Bio plastics (cornstarch)

When packaging is being designed, production techniques must be taken into

consideration. Modern high -speed packaging lines can work to very specific
requirements.

Systems nd control
Sophisticated tools and knowledge of various control technologies (mechanical,
electronic / computer, pneumatic) are needed to design and manufacture any product.
This is just as true of a factory that produces chocolate as one that produces mobile
phones or cars. For example, Cadbury Creme Eggs used to be individually wrapped and
the process was labour-intensive. Fully automatic egg machines now mean that a series
of mechanical operations have replaced human handling. This means quicker production
time and fewer blemishes on the product

Mech nism
Like any other machinery, industrial machinery is
essentially a set of mechanisms. These may be
simple or very sophisticated, but at heart they are a
combination of gears, belt and chain systems and
linkages. Generally, mechanical systems are powered by rotary or linear electric motors
or solenoids, which in turn are controlled by an electronic control system. The next six
screens take you through various types of system.

Belt nd h in Systems
Belt and chain systems use a belt stretched
between two pulleys or a chain stretched between
two cogs, so that when one pulley turns, the belt
turns the second one.

Belt and chain systems are used extensively in

the Cadbury factory to move the chocolate
products between the various manufacturing
stages.

omputer ontrol
At the centre of any production system is a computer control system.

The computer control system ensures that the production operations happen in the
correct order by controlling the electrical and pneumatic machinery.

It also monitors the production system, checking for problems using a wide range of
sensors. If a problem is detected the control system is able to take action to fix the fa ult
or, if necessary, stop the relevant machines and alert a human operator.

Data from the monitoring system are recorded both so that the productivity of the plant
can be tracked over time and also to provide a log of machine failures.

At Cadbury, these operations are managed by three kinds of computer system:

1. Production line monitoring

c

Software running on a Windows PC provides a graphical representation of the production

line, showing the operator exactly what the line is doing. The operator can also view a
historical record showing what the production line has been doing in the form of trends,
reports and alarm messages.

Operators can both supervise the line and also step in to override the main control
systems, for example to switch a part of the line off for maintenance.

The collection of software and hardware used for monitoring is called a Supervisory
Control and Data Acquisition (SCADA ) system.

*
Production line d t collection

Recorded data, such as temperatures, production quantities and faults, are continuously
sent to a separate set of computers and stored. Production staff can retrieve and analyse
several years¶ worth of data.

A. Production line control

Programmable Logic Controllers (PLCs) carry out the second-by-second control of the
manufacturing machinery. A PLC is a dedicated industrial controller, containing a
microprocessor, memory and the ability to communicate with a large number of input and
output devices. These measure the state of the plant (providing, for example, information
on temperature, pressure, position, speed) and change the state of the plant (for
example opening valves, running pumps, turning heaters on and o ff).

Pneum tics

Pneumatic systems use compressed air to operate

the mechanisms in a machine, instead of using
electronic and electrical devices.

Pneumatic systems are particularly useful where a

large force is needed. Providing power to the
device uses relatively cheap components (air lines),
whereas an equivalent power solenoid needs thick
copper wires and a large coil to move the armature,
which generates heat.

Valves are used to control the flow of air in a pneumatic system. Valves can be switched
mechanically, by the pneumatic system itself or more usually, electronically. This means
that pneumatic devices can be integrated into a comp uter control system.

Pneumatics are used a lot on the Cadbury production line, e.g. during the manufacture
and moulding of the Cadbury Dairy Milk range, when various fluids have to be pumped
around and mixed.

The pipes that the liquid ingredients are pumpe d along are up to 150mm in diameter and
the process valves that control the flow of these ingredients are correspondingly large.
Process valves (not to be confused with pneumatic valves) are like taps that can be
opened and closed to control the ingredient flow. Each process valve is operated by a
pneumatic cylinder that is in turn operated by a pneumatic valve. This pneumatic valve is
switched using a solenoid, allowing it to be operated by the electronic control system.

Once the products have been moulded they are placed on a conveyor belt system that
carries them through the various stages of cooling and packing. Pneumatic devices are
also used here; if damaged products are detected, high pressure air is used to simply
blow them off the line into a bin.

'Assembly line'

The manufacturing stages involved in producing Cadbury Dairy Milk are as follows:

1. Ingredient mixing
2. Heating
3. Transport of liquid Cadbury Dairy Milk
4. Moulding
5. Transport of moulds
6. Cooling
7. Transport of solid Cadbury Dairy Milk
8. Wrapping
9. Transport of wrapped bars
10. Boxing
Cadbury uses flow production to make hundreds of thousands of the same product, with
machinery moving each one along a production line. Cadbury also uses batch production
± some machines are set to make different products during dif ferent shifts. Machinery is
often used on flow and batch production lines to make things quicker and reduce human
error. This is called automation.

Cadbury Creme Eggs are made using automated flow production:

P Melted chocolate is poured into special half -egg moulds.

P The moulds move down the production line where they are filled with the fondant
egg white.
P The half eggs move to another section where the fondant egg yolk is added.
P The tops of the eggs are put on each egg, and they are individually wrapped.
P Workers on the production line work a 12 -hour shift. This may be 12-hour days or
nights. They have two 18 minute breaks during the shift and a meal break of 42
minutes after six hours. They will work for four days and then have four days off .

P Creme Eggs are wrapped at a rate of 320 eggs a minute.

P The Creme Egg production line makes 600,000 eggs every 12 -hour shift ± that¶s
the equivalent weight in Creme Eggs of about three elephants!
P Cadbury Creme Eggs are available in more than 11 countries including the U K,
US, Spain and Singapore.
P There are 450 employees on the production lines during every shift.
P Stock control is just-in-time (JIT) ± Cadbury carry stock of packaging materials for
the next two to three days. JIT systems keep the stock levels to a minimum and
rely on the delivery of materials just when they are needed.
'Production Processes'

Features of job production include:

1. Unique one-off order

2. Ability to change specifications at any stage
3. Work is likely to be varied
4. Labour costs can be high
5. Lead times likely to be lengthy

Features of batch production include:

1. Can result in stocks of partly finished goods, which take up space

2. High level of coordination needed to schedule different orders
3. Used in factories producing a number of similar products
4. Used in factories for seasonal items or products

Features of flow production include:

1. Very large quantities are usually produced

2. Production lines can operate 24/7
3. Standardised products
4. Company likely to enjoy economies of scale
5. Very high set up costs

SWO An lysis of  dbury

Strengths


P Cadbury is the largest global confectionery supplier, with 9.9% of global market
share.
P High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)
Strong manufacturing competence, established brand name and leader in
innovation.
 P Advantage that it is totally focused on chocolate, candy, chewing gum, uniqu e
understanding of consumer in these segments. Successfully grown through its
acquisition strategy.

We knesses
P The company is dependent on the confectionery and beverage market,
whereas other competitors e.g. Nestle have a more diverse product portfolio,
where profits can be used to invest in other areas of the business and R&D.
P Other competitors have greater international experience - Cadbury has
traditionally been strong in Europe. New to the US, possible lack of understanding
of the new emerging markets compared to competitors.

Opportunities
P New markets. Significant opportunities exist to expand into the emerging
markets of China, Russia, India, where populations are growing, consumer wealth
is increasing and demand for confectionery products is increasing.
P The confectionery market is characterized by a high degree of merger and
acquisition activity in recent years. Opportunities exist to i ncrease share through
targeted acquisitions.
P Key to survival within the FMCG market is increasing efficiency and
reducing costs.
P Cadbury Fuel for Growth and cost efficiency programme s seek to bring cost
savings by Moving production to low cost countries, where raw materials and
labour is cheaper.
P Reduce internal costs - supply chain efficiency, global sourcing and procurement,
and wise investment in R&D
P Innovation is key driver. To respond to changes in consumer tastes and
preferences -healthier snacks with lower calories need to be developed. R&D and
product launches have led to sugar-free & centre filled chewing gum varieties and
Cadbury premium indulgence treat. Low -fat, organic and natural confectionery
demand appears strong.
hre ts

P Worldwide - there is an increasingly demanding cost environment,

particularly for energy, transport, packaging and sugar. Global supply chain in low
cost locations.
P Competitive pressures from other branded suppliers (national and global).
Aggressive price and promotion activity by competitors - possible price wars in
developed markets.
P Social changes - Rising obesity and consumers obsession with calories
counting.
P Nutrition and healthier lifestyles affecting demand for core Cadbury products