Organization study on bccw

Bharathi Coffee Curing Works, Hassan.

INDUSTRY PROFILE

1 |Pages H.R. Institute of Higher Education, Hassan.


INDUSTRY PROFILE

The Coffee industry of India is the sixth largest producer of coffee in the world,
accounting for over four percent of world coffee production, with the bulk of all
production taking place in its Southern states. India is most noted for its Monsoon
Malabar variety. It is believed that coffee has been cultivated in India longer than
anywhere outside of the Arabian Peninsula.

Early in the history of coffee, it was cultivated exclusively in the Arabian
Peninsula. To maintain this monopoly on coffee production, the Arabians forbade the
export of coffee beans that had not been roasted or boiled enough to prevent germination.
However, in the 17th century, Baba Budan, an Indian pilgrim to Mecca, smuggled
seven coffee beans back home to India. There he planted the beans in the Mysore
region, establishing the first coffee plantation in India. By 1840, under British rule,
India began to grow coffee for export.

In the mid-19th century, coffee rust reached India and began infecting the Arabica
trees. By 1869, the rust had become an epidemic. As a reaction to this, many of the
farmers replaced the Arabica trees with Robusta, Liberia, or a rust-tolerant hybrid
variety of Arabica tree. These more resistant trees are still commonly grown in India.
Coffees produced in India have more in common with Indonesian coffees than
with coffees from Africa or the Arabian Peninsula. Good Indian coffees are grown in
the states of Karnataka (formerly Mysore), Kerala, and Tamilnadu (formerly Madras).
In good years these coffees can contain acidity typical of Guatemalan coffee, and the
full body of a good Javanese coffee. In addition, these coffees incorporate the unique
spicy flavors of nutmeg, clove, cardamom, and pepper.

India also produces monsoon coffees, in which the green beans have been
exposed to the monsoon winds blowing through open warehouses during India’s rainy
season. This process reduces acidity and enhances sweetness, making them similar to
Indonesian aged coffees.



The history of the coffee bean does not want for drama. Since its first documented
use and probably long before stories involving coffee have been rife with intrigue, passion,
revolution, and idiosyncratic charm.

Of Goats and Holy Men
Legend has it that the stimulant properties of coffee were discovered sometime
before the ninth century by an Abyssinian goatherd named Kaldi. Bored and mischievous,
the young man’s goats began snacking on coffee cherries while he napped nearby. Waking
to find his goats pirouetting off rocks and the surrounding canyon walls, Kaldi collected
a handful of the bright red fruit and hastened home to his village imam. As an experiment,
the religious leader boiled the cherries in water and then drank the concoction himself.
He became alert and lively, so much so that maintaining wakefulness during evening
prayers was uncharacteristically effortless. These stimulating properties made coffee an
instant hit among the ranks of the faithful, and its use rapidly became routine.

As coffee gained in popularity, the sixteenth-century Mohammedans found reason
to complain. Ironically, they considered coffee to be a threat to religious sobriety,
especially upon witnessing that followers were more likely to frequent street side cafes
than they were to visit the mosques. Consumption was discouraged, and rumors linking
the beverage with impotence, among other “ills,” spread wildly. Still, there was no scarcity
of coffee drinkers.

In fact, the Arabians guarded their beans with extreme jealousy. All coffee beans
designated for export were boiled, destroying their ability to germinate and be
domesticated outside the region. Although there is unofficial record that one religious
pilgrim smuggled a seedling back to India in the early 1600s and planted it behind his
hut in the Mysore area (where a great deal of good coffee has grown since), the commercial
production of coffee remained under Arab control through the latter part of the century.

The Baptism of the Bean
Not long after Venetian traders first presented coffee to Europe in 1615, Pope
Clement VIII was warned it might prove threatening to the holy aims of the Church. A
legislature of priests accused the beverage of being a tool for the devil, designed to lure
good worshippers into losing their souls. Curious, the pope requested that his attendants
bring a cup of the stuff to him. He found its aroma pleasing and, upon tasting it, became
so enamored with the brew that he decided to get the better of the devil by baptizing it,
thereby making coffee a “truly Christian beverage.”

The ardently entrepreneurial Dutch orchestrated the first successful planting
outside Arabia-on the island of Java-in 1699. An initial trial shipment was sent back to
Amsterdam in 1706 and included one seedling, which was planted in the botanical
gardens. This tiny plant later played the role of parent seedling to the majority of the
coffee grown in the western world.



When coffee so gained in popularity in Germany that it replaced other breakfast
beverages, the eighteenth-century ruler Frederick the Great issued a desperate manifesto.
“It is disgusting to notice the increase in the quantity of coffee used by my subjects,” he
declared, complaining with particular bitterness that the revenues for coffee went to
foreign hands while profit from beer came to the crown. “My people,” he protested,
“must drink beer.” Johan Sebastian Bach’s famous one-act operetta, the Coffee Cantata,
was a thinly veiled operatic criticism of the extraordinary lengths the royalty and upper
classes took to keep common folk from enjoying the beverage.

The fashionable populations of Vienna and London willingly blessed the beverage
as well, although it was a Turkish ambassador’s introduction of coffee to Paris that
sparked a veritable explosion of coffee culture. It was rumored that Louis XV spent
$15,000 per year on coffee for his daughters. Even the most avid coffee drinkers are
astonished to hear that Voltaire supposedly consumed 50 cups a day. Balzac, another
devotee among the French literati, applied its exciting properties thusly: He went to bed
at six in the evening, slept until midnight, then rose for 12 solid hours of writing, during
which time his sole sustenance was coffee.



History of Coffee
In ancient times, the coffee
earned a very massive reputation
because of its stimulating properties. It
was said to provide religious ecstasy.
According to popular legends, coffee
beans were discovered by a goat herder
in Ethiopia some 1000 years back. He
noticed that his goats became
hyperactive when they consumed
berries from a particular shrub when he
changed pastures. On consuming the
berries himself, he found that it gave him a boost and allowed his to remain active.
Monks from nearby religious shrines first condemned him when they saw him dance in
ecstasy, but later when they ate the berries themselves, they claimed that it helped them
stay awake during prayers.

Yet another story goes that in Arabia, a person was banished by his enemies and
was driven off to the desert to die of starvation. However, even in a state of delirium, he
happened to notice the berries on shrub and tried to soften it with some water. When he
didn’t find any success in that, he simply drank that water. This gave him some energy
and his survival was treated as a miracle in the nearby village of Mocha. That is how
coffee earned the name of ‘Mocha’ as an honor to its energy providing properties. It was
around the 15th century that coffee was cultivated in the Yemen province located in
Arabia. At that time, Arabia was the primary source of coffee.

Coffee beans were traded from Arabia to Alexandria and Constantinople under
high security. Fertile plants were not allowed to leave the country and it was kept under
strict vigilance. However, Muslim pilgrims managed to quietly smuggle a few plants to
their homelands while going on a pilgrimage to Mecca. This is how coffee came to
India. The first coffee shop in the world was opened up in Constantinople in 1475. It
was more or less during the early 17th century that coffee entered Europe through Venice.
The first coffee house in Europe opened up in Italy in 1654. The Dutch gained monopoly
over merchant shipping industry in the middle of the 17th century and also introduced
large scale coffee cultivation in their colonies in Java, Sumatra, Sulawesi and Bali in
Indonesia.

Several decades later, coffee was introduced in Latin America by a French naval
officer. However, in early 18th century, the coffee plantations in South East Asia were
destroyed by a rare plant disease and from then, Brazil emerged as the major coffee
producer in the world; something it holds true to this date. In early 19th century, a prototype
of the first espresso machine was prepared in France. Coffee then began to be roasted
by a process that involved the use of natural gas and hot air. It slowly became the most
preferred drink for breakfast and has been maintaining a steady position in the department
till date.



COFFEE INDUSTRY IN INDIA

Indian coffee industry is defiantly a huge sized industry which plays a very major
role in the world market of coffee. India at present is in 8th place in its contribution of
coffee and its plantation in the whole world and 1st place being Brazil.
But not all parts of India produces coffee. It is grown mostly in south India and
highest part of its growth from the whole India is in Karnataka, that is from districts of
Hassan, Chikmagalur and Coorg. Rest is grown in states of Tamilnadu, Andrapradesh,
Keral and other northern parts such as Sikkim and Nagaland.

So as shown in the next table about the quantity of coffee that is produced in the
whole India we come to know that the whole output of India is 2.88 lack tones coffee per
anum, more than 2 lack tones is grown only in Karnataka and rest in other parts of India
as mentioned in the table below. So among 2.06 lack tones of whole Karnataka’s coffee
production, BCCW has a huge contribution to coffee exports among the many competitors
in the same business as mentioned earlier.

PRODUCTION OF COFFEE IN MAJOR STATES / DISTRICT (ZONES)
OF INDIA (IN M / TONS)

State / District Year 2006 / 2007
Arabica Robusta Total
Karnataka
Chikkamagalur 41,550 31,000 72,550
Coorg 21,700 85,800 107,500
Hassan 17,000 8,975 25,975

Total 80,250 125,775 206,025



OVERVIEW
Significant increase both in production and exports notwithstanding, the
international coffee market has been experiencing continuous fall in the commodity
since the beginning of the current year (2007). The composite indicator prices, according
to the Internatioal Coffee Organization’s market report, has dropped to US cents 99.30
per LB in April, 2007 from US cents 105.81 per LB in January this year. Production of
coffee during first six months of the coffee year 2006-07 stood at 9.29 million bags in
March 2007 signifying an increase of 15 percent from 8.07 million bags recorded during
comparable period of CY 2005-06. Exports in the first 6 months of coffee year 2006/07
(Oct-06 to Mar-07) were up over 18 percent from the same period last year - totalling
48.49 million bags compared to 40.98 million bags. Arabica exports in the 6-month
period went up by over 13 percent from 27.39 million bags to 31.07 million bags, whereas
Robusta exports increased by over 28% from 13.59 million bags to 17.41 million bags.

Volume wise, the permits issued for coffee exports in fiscal 2006-07 is the highest
ever (2,58,546 tonnes) surpassing the previous best of 2,46,908 tonne of actual exports
in 2000-01. Export earnings in fiscal 2006-07 is the highest for the past 8 years i.e. since
1999-2000.The total export earnings will cross Rs.2000 crore for 2006-07.

Volume* & Value# of Exports
2002-03 2003-04 2004-05 2005-06

Volume Value Volume Value Volume Value Volume Value
Colombian 11.86 1.04 11.43 1.13 12.19 1.72 11.86 1.78
Milds
Other Milds 20.86 1.69 20.48 1.91 19.34 2.53 20.46 2.87
Brazilian 25.39 1.53 25.90 1.93 27.85 3.02 26.53 3.26
Naturals
Robustas 30.13 1.32 30.92 1.46 30.37 1.71 29.03 2.12
Total 88.24 5.58 88.72 6.44 89.75 8.98 87.87 10.02
* Volume in Million bags# Value in Billion US$
According to ICO Executive Director Néstor Osorio,there are only a few measures
that could directly address the supply-demand balance. On the supply side – in view of
the political and technical difficulties of supply-management schemes – two policies
were possible: (a) to create awareness – best achieved through the ICO – in national and
international bodies of the danger of embarking on any projects or programmes which
would further increase supply; and (b) working to increase the benefits accruing from
value-added products rather than traditional bulk commodity exports. The greatest
potential for restoring balance, he pointed out, lay in promoting market development
measures to increase demand. These should include: (a) support for the ICO Quality-
Improvement Programme as a means of improving consumer appreciation of coffee as



well as having an associated effect of removing some sub-standard coffees from the
supply side of the world coffee equation; (b) action to increase consumption in coffee-
producing countries themselves, which should have a number of positive effects such as
providing an alternative market outlet, increasing producer awareness of consumer
preferences, stimulation of small and medium enterprises, etc., as well as acting to increase
demand; (c) action to enhance knowledge and appreciation of coffee in large emerging
markets, such as Russia and China, following the successful ICO campaigns in the 1990s;
and protecting consumption levels in traditional markets through quality maintenance,
development of niche markets and dissemination of positive information on the health
benefits of coffee consumption.

INDIA: EXPORT HIGHLIGHTS (2006-07)
Volume wise, the permits issued for coffee exports in fiscal 2006-07 is the highest
ever (2,58,546 tonnes) surpassing the previous best of 2,46,908 tonne of actual exports in
2000-01.

The total export volume of 2,58,546 tonne, includes 29052 tonne of re-exports.
The permits issued for re-exports in 2006-07 compared to 34813 MTs of actual re-exports
in 2005-06 (less by 5761 tonne or 16 per cent)

The unit value realization for all types of coffees exported in green bean equivalent
in 2006-07 is Rs 79895 per tonne and is the highest for the past eight years i.e. since
1999-2000.

As on date, confirmation of exports in 2006-07 is for 221421 tonne for which
foreign exchange earnings realized is $ 395.04 million or Rs.1769 crore. Export earnings
in fiscal 2006-07 is the highest for the past 8 years i.e. since 1999-2000.The total export
earnings will cross Rs.2000 crore for 2006-07.

Italy, Russian Federation and Germany are the top three importing countries of
coffee from India in 2006-07. Belgium emerged as the fourth biggest importer of coffee
from India for the first time.

The permits for export of Indian coffee alone in 2006-07 is 229495 tonne compared
to 168161 tonne in 2005-06 (Actual exports = 165230 tonnes

Source: Federal Ministry of Commerce, Government of India



COMPANY PROFILE



1. BACKGROUND AND INCEPTION OF THE COMPANY
Established in the year 1961 and situated
in Hassan, Karnataka, the unit is equipped with the
most sophisticated machinery for processing green
coffee.

The unit has an installed annual production
capacity of 6000 M. T. The unit can handle process
of both Arabica and Robusta Coffee.

The unit boasts of having in place a whole
lot of power machines like, Precleaner, Destoner,
Huller, Peeler, Polisher, Catodor, Oscillating
Screens and Electronic Color Sorters. The unit has large and well-built storage areas for
storing coffee in good condition and for long durations.

The processing unit has a very well trained staff for processing and quality
analysis. This facilitates us to produce good quality coffee. This in turn has helped us to
have long term association with coffee growers who pool their coffee with us.

The unit is recognized and certified by the Coffee Board of India for processing
and exports of coffee.

This trading venture is engaged in the trading, GREEN Coffee, in both domestic
as well as overseas markets.

This trading unit specializes in trading of Plantation A, Plantation B, Plantation
PB, Plantation C, Arabic Cherry AB, Arabica Cherry PB, Arabica Cherry C, Arabica
Cherry Bulk, Robusta Cherry AB, Robusta Cherry PB, Robusta Cherry Bulk coffee.

The unit procures processed coffee from its sister concern Bharathi Coffee Curing
Works which has in place a very elaborate and good quality control process to ensure
high quality coffee beans. The annual turnover is about USD 800,000.

Major buyers:
Coffy Handels, Germany
Fuga AG, Switzerland
Volcafe, Switzerland
Bernard Rothfos Group
Rothfos Corporation, USA
Mellow Trading, Dubai
Lari Abdulla Ansari and Co., Dubai
Ken Cafe Imports, Canada



Bharathi Associates’ visionary management team has a clear focus on quality,
infrastructure, scalability and customer service. Our success story is being written mainly
by our highly motivated team.

Bharathi Group:
Driven By Quality
The nearly half-century old Bharathi Group has a fascinating history that dates
back to a coffee processing unit set up in Karnataka, India, in 1961. Over the decades,
the group has built rich expertise and successful businesses in diverse domains such as
agro-processing, exports, healthcare and, now, technology. The thread that ties all these
ventures is Quality.

From its agricultural roots, the Bharathi Group has transformed itself into a
modern, technology-driven conglomerate that provides a range of IT-enabled and
Business Process Outsourcing (BPO) services to customers worldwide.

Team
The team has a rich blend of experienced professionals from across the
Agriculture, Microbiology, Engineering, Marketing and Accounts domain.

Management Team
The management team of Bharathi Associates is headed by its Chairman
G.L. Muddegowda, a savvy and respected entrepreneur with several successful ventures
in agro-processing, healthcare and medical transcription and now information technology
to his credit.

Operations are headed by G.M.Vinod. A business management graduate, Vinod
is in charge of agri-procurement, processing, and marketing. He has rich experience of
well over 20 years in agri-based operations and agri-product processing and marketing.

Processing is driven by H.K. Mahendra, a business management graduate who
brings with him an experience of well over 15 years in the agri-processing industry.



2. VISION, MISSION AND QUALITY POLICY

Vission and Mission:

“To consistently excel in process automation and quality, create innovative and
economical solution and service through consistent employee enrichment”

Our Belief:

When a firm successfully meets the value expectation of its customers and
delivers the same at cost that is lower than that of its copetitors, all the while maintaing
the set quality levels, it automatically begins to maximize its own value.

Scale new heights in quality computing.
Innovate consistently to create economically viable solutions and services.
Achieve excellence consistently.

Quality Policy:

The nearly half-century old Bharathi Group has a fascinating history that dates
back to a coffee processing unit set up in Karnataka, India, in 1961. Over the decades,
the group has built rich expertise and successful businesses in diverse domains such as
agro-processing, exports, healthcare and, now, technology. The thread that ties all these
ventures is Quality.

Goal:
Indian coffee is exported to all parts of the world. But except in India it is no
where called as Indian coffee and doesn’t have a name and popularity.
So the goal of BCCW is to make the world recognize Indian coffee as Indian
coffee and not anything else.



3. NATURE OF THE BUSINESS CARRIED

Purchase of raw coffee of both Arabica and Robusta from coffee growers of
Chickmaglur district, Hassan district and Coorg district. And process the purchased
coffee to next process.



4. PRODUCT PROFILE

Obviously the product is coffee
beans and coffee can be mainly divided into
two types.

♦ Robusta
♦ Arabica

Arabica named for the Arabs, is the
better and more expensive of the two.
These trees grow in semitropical climates
near the equator, both in the western and
eastern hemispheres, at high altitudes.
Because ripe Arabica cherries (unroasted
beans) fall to the ground and spoil, they
must be carefully monitored and picked at intervals, which increases production costs.

Robusta trees which are grown exclusively in the eastern hemisphere also thrive
in equatorial climates, but at low altitudes. Their cherries require less care since they
remain on the tree after they ripen. Robusta beans have twice the caffeine of Arabica,
but less flavor. Some supermarkets carry Arabica, but most of their brands are Robusta.
Coffee shops generally use Arabica beans, but because their brews are so strong.

To describe the taste of Arabica is difficult without using trite words like smooth
and mellow. It has a round taste that is both rich and delicate, with good acidity. This
does not refer to an actual degree of acidity, but to the sharp and pleasing taste that is
neither sour nor sweet.

In fairness, although most Robusta coffee is of a lower grade and inferior to
Arabica, there is a premium crop that is the top of the line for Robusta beans. Premium
Robusta is primarily used in specialty espresso blends, and is never found in canned
coffee. Though it only constitutes 5-15% of the blend, it is used because these beans add
body to the taste and make a nice cream in the shot of espresso. This additional body
distinguishes the blend in a cappuccino or latte. Premium Robusta should only be used
for espresso and not other brewing methods.

If the coffee is Colombian, it will probably be Arabica on the side or back of the
package, since this country produces nothing else. Guatemala, El Salvador, Tanzania
and Kenya also produce all Arabica beans.

Only these 2 varieties are grown in India because of the soil. But there are various
subdivisions in these two types of coffee beans depending on its size colour and shape



Again these two types that is Arabica and Robusta are brought in to BCCW by two
ways.

♦ Parchment
♦ Cherry

PARCHMENT

It means bringing the cleaned beans
or already separated and dried coffee beans
in to BCCW.

Usually this parchment is done by
the estate owners through pulper machines
which separate the beans from the cherry
which are ripen and the beans are cleanly
separated from cherry and all the remains
are eliminated as waste and then these beans are dried and then transported to BCCW
where the further processing of the beans are under taken.

CHERRY

As the name indicates, it is the raw cherry which is grown in these 2 types of
plants.

They are directly purchased and brought to BCCW in a ripe cherry form and
even removing the bean from the cherry is done by BCCW, head office, Hassan &
Chikmagalur after bringing to BCCW. Here the work will be more to this curing works
as it is brought in raw form

Arabica is grown from December to March and these four months are considered
the best season for growing Arabic and plucking. Most of Arabica beans are exported
to USA (New York)

Robusta season is from Feb/Mar to May every year and considered best for
these beans (coffee). Most of Robusta coffee is exported to Switzerland.

Arabica parchment is plucked in 3 rounds

I Round :- Plucking of coffee from plants when they are fully ripe and ready to
pack.
II Round :- Plucking of half ripe coffee beans
III Round :- Plucking of cherry



Arabica coffee is strong and doesn’t fall down form the plant even due to heavy
rains. It has to be plucked.

Arabica coffee is more costly than Robusta because of its strong flavors and
taste.

Robusta coffee is lighter in nature and will easily fall off from the plant due to
rains. So more care has to be taken with this breed.

Table showing different types and sub divisions of coffee beans

Arabica Arabica Robusta Robusta
Parchment Cherry Parchment Cherry

AAA AA AA AA
AA A A A
A AB AB AB
B C C C
C PB PB PB
PB BB BB BB
BB Bits Bits Bits
Bits
EB

AAA = Triple A
AA = Double A
PB = P Berry
BB = Black Berry
EB = Elephant Berry

After all the above various types of coffee beans, there is also one more type of
coffee known as specialty coffee.
These coffees are produced by grinding two or more types of coffee beans together.
As in the chart consisting types of beans Arabica AAA may be grinded with Arabica AB
or PB, also with the varieties of Robusta parchment & cherry likewise by combining all
types of coffee beans with each other using probabilistic methods results in birth of specialty
coffee. There is also a type known as MONSOONED COFFEE.



Known across the world, as unique coffees processed as per centuries old traditions,
“Monsooned coffee” was first produced quite by accident.

In the earlier days, coffee shipped from India to Europe took almost six months to
reach its destination. During that shipping process, the humidity at sea changed the beans
allowing it to acquire a distinct rich, mellow taste and a unique golden look. With the
coffee beans ‘swelling’ due to the moisture in the air, a new kind of coffee was born -
Monsooned Coffee.

Today, this entire flavour and experience is recaptured by the special process of
“monsooning”.

The Monsooning process reforms the colour and the physical characteristics of
cherry coffee. The colour is changed to a golden yellow. The beans swell in size and the
bulk density is reduced.

The cherry/fruity taste disappears and the liquor is soft, rich, velvety smooth and
mellow with light acidity and a pleasant earthy flavor.

In this case the coffee beans are dried in a humid atmosphere which results in a
unique golden look on the coffee beans and a mellow taste which is rich in flavor. It also
results in a slight swelling of the coffee beans. This is usually done in costal areas where
the temperature is very humid.

Even Monsooned coffee has different types such as
Monsooned arabica AA
Monsooned arabica Basanaly
Monsooned arabica Triage
Monsooned Robusta AA



5. WORK FLOW MODEL
Hulling, Grading and Garbling
The machinery installed at the curing factory for the various curing operation
are as follows:-
1. Dust/Twig/Stone separator
2. Huller
3. Pillar cum polisher
4. Winnower
5. Unpeeled coffee separator
6. Grader
7. Catador
8. Specific gravity separator
9. Pneumatic separator
10. P B Band separator
11. Bucket elevators
12. Electronic colour sorting machine

Steps involved in the Hulling and Grading of coffee
The raw coffee is first passed through a Stone/Stick Eliminator where foreign
raw material like stone, sticks, twigs etc are removed. The coffee is then passed in to
Huller/Peeler cum Polisher and from there on to the horizontal or vertical winnower. The
coffee is next allowed in to pre-grader, where the bits are separated. It then passes through
the sizes (grades) , where the grades of coffees such as P B, A,B&C are separated .Increase
a pre grader is not installed , the coffee may be directly passed on to the seizers where
bits could be separated. There after the coffee is subjected to Garbling/Sorting , outturning,
building etc.

Hulling and Peeling

The cherry coffee are hulled using “Hullers” and the parchment coffee are peeled
by “Peelers”, and the subjected to polishing.

Grading
Primary grading is carried out based on the rise of beans. This is carried out on a
rotary grader. Secondary grading is done based on Dens metric classification of individual
graders. Catadars and Gravity separator are used for Dens metric classification of coffee.

Garbling/Sorting
The sorting of defective beans and discloser beans is carried out manually by
women garblers. In many of curing factories, Electronic color sorting machine are also



used for the sorting of discolored beans viz, Blacks, Browns. The electronic color sorting
machines are complimentary to manual garbling process.

Out turning

After the garbling process, the coffee lot is outturned and quantity of each of the
grades weighted and recorded

Packing

Double gunny bags used for the packing of cured coffee. The type of gunny bag
used is of the “B-TWIIF” of “DW” quality. The coffee is packed in quantity of 75kg/
bag.

Storage of coffee

Drying capacity, Machine capacity and Storage capacity are important requisites,
which determine the curing capacity of a curing factory.

The storage capacity of a curing factory is calculated based on certain norms
fixed by Board which are as follows:

The flour area requires for storing raw coffee (uncured) equivalent to one tonne
of clean coffee is 13.5sqft . When height of a godown is 15ft in terms of volume the
space required for storing raw coffee equivalent to 1 ton of clean coffee is 202.5cubicft.

The flour area require for storing 1 ton of clean coffee is 7.5sqft for wall height
of 14ft. In terms of volume the space required for storing 1 ton of clean coffee is
105cubicft.

Method of Calculation of Basic Storage Capacity

Godown space require for storing uncured coffee
equivalent tone ton of clean coffee 202.2 cubic feet

Space required for storing one ton of cured 105.0 cubic feet
coffee



For curing works in Karnataka

Ratio between the quantity of raw coffee and
the quantity of clean coffee in storage 75:25

Ratio between the godown space occupied
by the raw coffee and clean coffee 85:15

Example:

Total volume of godown available of
100000 cubic feet
storing of coffee



6. FUNCTIONAL AREAS

Here in this chapter the functional areas of BCCW, Hassan head office has been
covered and matters relating to people in the organization, systems and procedure adopted
in the functioning of the organization, polices followed for the maintenance of the
organization and also the production procedure which followed in the organization is
mentioned in detail.

PEOPLE

People are considered one of the most important asset of BCCW. The whole
company is successful through a huge chain of people who mange the functioning of this
company.

Even in Hassan head office of BCCW people management is done to certain
extent. There are about 35 people from top to bottom (permanent and temporary staff)
which exclude the contractual labour who may differ from 130 to 150 or 200 depending
on the work in on season and off season of coffee growth.

Pay for the people may vary from Rs.5000 to Rs.85000 (excluding the contractual
labour) depending on the person’s position in the organization.

Labourers are paid depending on their work rate which may also differ seasonally.
The recruitment of people until the assistant general manager post and also the pay to
them is done directly by the president and other head authorities directly from office of
BCCW and the recruitment and pay for the general staff, sub-staff and the labourers is
managed by the senior general managers and assistant general managers in Hassan.

Usually experienced people with high skills are selected and qualification must
be Charted Accountant (CA) and Master of Business Administration (MBA) of the people
who get selected for such high post and HR management is done by HR managers through
out the company.

Apart from the people with in the organization, BCCW in Hassan also manages
a chain of agent related to it. These agents are situated in most part of Hassan, Chikmagalur
and Coorg districts.

These agents have the job to convince the estate owners to sell their coffee to
BCCW and should keep them inform about the advantages and the prevailing prices of
coffee as per the bag rate in BCCW. There are about 40 to 42 agents of BCCW head
office, Hassan who are also provided with small warehouses of about 100 baggage capacity
and are paid commission for acting as an attractive link between the estate owners and
BCCW. And these entire agents are personally managed by Hassan head office of BCCW.



POLICIES

There are many policies which are followed such as
Company policy to bare the transportation expenses of estate owners.
Policy of good customer relationship maintenance.
Maintaining good relationship with the agents of BCCW.
Controlling agents in such manner so that they should loyally do their agent
work only to BCCW & not indulge with any of its competitors.
Providing fringe benefits to all its employees and customers etc.

SYSTEMS & PROCEDURES

Now man has taken up the challenge with exceptional care in nurturing the
coffee, highly selective picking, perfection in curing, exactitude in roasting and mastery
in blending.

Under this we come to know about what actually happens in BCCW Hassan
and how the curing works takes place.

First of all the raw coffee beans (parchment or cherry) are brought into BCCW
Hassan head office and stored into big warehouses. This raw coffee is brought from the
own plantation of BCCW and also through the help of agents who supply coffee of
many other estate owners.

The procurement process takes place. The cherries are converted into coffee
bean by pulper machines and parchment is done.

Next under procurement, the coffee seeds go through a quality checking process
where the right moisture content in the coffee beans is checked and all the coffee beans
are brought into right moisture condition before they are entered into the production
process.

The appropriate moisture content in the coffee beans which should be present
before the coffee goes into production process is

Parchment – The moisture content should differ from between 10.5% to 11.5%
Cherry – The moisture content should differ from between 11% to 12%.

This is done by drying the coffee beans in sun and preparing them for the
production process.



Production Process

♦ The dried coffee is transferred to hulling machines. These CNC machines carry
on the process of DEHASKING, that is removal of the skin from coffee beans
and the skin is removed as waste.

These machines are 3 in number and 1 is imported from Buler Comp,
Germany costing Rs. 40 lacks. Other 2 are Indian made & costs Rs. 25 lacks each.

♦ Next polishing of coffee beans takes place to bring the smooth texture and shiny
look in coffee beans.
♦ After that these polished coffee beans enter a colour sorting machine which
differentiate green coffee beans from black.
Green coffee is more costly and is considered as proper bread with good
quality whereas black beans are considered as low quality coffee.



These colour sorting machines are imported from USA and is worth Rs.40
lacks.

♦ Next the coffee enters the roasting machines and is roasted to get the original
look and colour of coffee.

The roasting machine is worth Rs.80 lacks and is imported from Germany.
This roasting process is one of the most important process in coffee curing where
the real colour and taste of coffee is emerged.

♦ After roasting, GARNING is done by manual labours and defectives are removed.

♦ Grading of coffee is done and are separated according to its size, colour and
appearance and are given quality names such as AAA, AA, PB, BB etc

♦ Each different type is loaded and packed into bags and rates are based on bag.

The baggage quantities of each bag are as follows.
⇒ Unprocessed coffee-50 kgs/bag
⇒ Processed coffee-75 kgs/bag (domestic dealings)
⇒ Processed coffee-60 kgs/bag (export dealings)



Each types of coffee is placed in different places in warehouses and as and
when the export orders are placed in Banglore, coffee is loaded into containers, weighed
to know the requirement and the trucks are sent to Banglore which are checked again
and further sent to Chennai port for shipment and export.



7. AREA OF OPERATION

Anywhere in India for domestic sales and export sales it depends on the buyers
interest presently Bharathi Coffee Curing Works is exporting the Germany, Switzerland,
United States of America, Dubai And Canada.



8. COMPITITORS
As every other industry, even the coffee industry has lots of competitors. But
the competitors of BCCW are divided into 2 main groups as follows

Competitors in procurement or curing
Competitors in domestic market

The competitors in procurement or curing work of coffee beans are many in the
field. These competitors also indulge in import/export of coffee beans as BCCW.

Some of the competitors in this field for BCCW are
Allana coffee curing works
Jayanthi group
Amalgamated Been Coffee Trading Company Ltd.
Madhu Coffee Curing Works
Best Coffee Curing Works.

In domestic market there are lots of retailers who compete with BCCW in the
domestic market. Even though only 10% of BCCW’s products are marketed in domestic
market, there are lots of competitors even to compete for this 10% of coffee products of
BCCW.

Some of these competitors are
Narsus coffee
Hindustan Unilever.
TATA coffee



9. ORGANIZATION STRUCTURE

As the company is very vast in its size only a part of company is covered, that is
the head office of BCCW in Hassan.

BCCW HEAD OFFICE - HASSAN

As mentioned earlier, the head office of BCCW situated in Bangalore –
Managalore Road (National Highway-48) in Hassan has its main work in procurement
of coffee beans and is an export oriented unit which is controlled by the corporate office
of Bangalore to certain extinct.

90% of the coffee dealings of BCCW in its exports and rest 10% of it are in
domestic dealings. So the head office at Hassan plays very important role in success of
BCCW.

Even many domestic dealings of BCCW are carried on by head office in Hassan
such as supply to all its fresh and ground outlets in and around Hassan district.

So here the organization hierarchy of BCCW Hassan is shown in the next chart
from peoples authority shown from top to bottom.



10. ORGANIZATION CHART

Chairman

General Manager

Manager Manager
Production and Administation Sales and Export

Asst. Manager Asst. Manager Asst. Manager Asst. Manager
Production Administation Sales Exports

Quality Office Office Office
Controller Superintendent Superintendent Superintendent

Sampler Supervisor Supervisor Supervisor

Clerical Sales Export
Helper
Staff Executives Executives

Office Office Office Office
Assistants Assistants Assistants Assistants



11. FUTURE GROWTH AND PROPECTUS

Indian coffee is exported to all parts of the world. But except in India it is no
where called as Indian coffee and doesn’t have a name and popularity.

So the goal of BCCW is to make the world recognize Indian coffee as Indian
coffee and not anything else.



MCKINSEY’S 7S MODEL



McKinsey’s 7S model with special reference to Organization Study
The 7-S Framework of McKinsey’s is a Value Based Management (VBM) model
that describes how one can holistically and effectively organize a company. Together
these factors determine the way in which a corporate operates. The 7S framework first
appeared in the “ The Art of Japanese Management” by Richard Pascal and Anthony
Athos in 1981.They had been looking at how Japanese industry had been so successful,
at around the same time that Tom Peters and Robert Waterman were exploring what
made a company excellent. The 7 S models were born at a meeting of four authors in
1978. It went on to appear in “In Search Of Excellence” by Peters and Waterman and
was taken up as a basic tool by the Global Management Consultancy firm McKinsey.

To be effective, the organization must have a high degree of fit, internal alignment
amongst all the 7S’s. All S’s are inter-related and a change in one has a ripple effect on
all the others. It’s impossible to make progress on one without making progress on all.
Thus, to improve any organization, one has to pay attention to all of the seven elements
at the same time. There is no starting point or implied hierarchy.

Those seven elements are distinguished in so called Hard S’s and Soft S’s. The
hard elements are feasible and easy to identify. They can be found in strategy statements,
corporate plans and organizational charts and other documentations.

The four soft S’s however, are difficult to describe since capabilities, values and
elements of corporate culture are continuously developing and changing. They are highly
determined by the people at work in the organization. Therefore it is much more difficult
to plan or to influence the characteristics of the soft elements. Although the soft factors
are below the surface, they can have a great impact on the hard structure, strategies and
systems of the organization.

This paper discusses McKinsey’s 7S Model that was created by the consulting
company McKinsey and Company in the early 1980s. Since then it has been widely
used by practitioners and academics alike in analysing hundreds of organisations. The
paper explains each of the seven components of the model and the links between them.
It also includes practical guidance and advice for the students to analyse organisations
using this model. At the end, some sources for further information on the model and
case studies available on this website are mentioned.

The McKinsey 7S model was named after a consulting company, McKinsey and
Company, which has conducted applied research in business and industry (Pascale &
Athos, 1981; Peters & Waterman, 1982). All of the authors worked as consultants at
McKinsey and Company; in the 1980s, they used the model to analyse over 70 large
organisations. The McKinsey 7S Framework was created as a recognisable and easily
remembered model in business. The seven variables, which the authors term “levers”,
all begin with the letter “S”:



These seven variables include structure, strategy, systems, skills, style, staff and
shared values. Structure is defined as the skeleton of the organisation or the organisational
chart. The authors describe strategy as the plan or course of action in allocating resources
to achieve identified goals over time. The systems are the routine processes and procedures
followed within the organisation. Staff are described in terms of personnel categories
within the organisation (e.g. engineers), whereas the skills variable refers to the capabilities
of the staff within the organisation as a whole. The way in which key managers behave in
achieving organisational goals is considered to be the style variable; this variable is thought
to encompass the cultural style of the organisation. The shared values variable, originally
termed superordinate goals, refers to the significant meanings or guiding concepts that
organisational members share (Peters and Waterman, 1982).

The shape of the model (as shown in figure 1) was also designed to illustrate the
interdependency of the variables. This is illustrated by the model also being termed as
the “Managerial Molecule”. While the authors thought that other variables existed within
complex organisations, the variables represented in the model were considered to be of
crucial importance to managers and practitioners (Peters and Waterman, 1982).

The analysis of several organisations using the model revealed that American
companies tend to focus on those variables which they feel they can change (e.g. structure,
strategy and systems) while neglecting the other variables. These other variables (e.g.
skills, style, staff and shared values) are considered to be “soft” variables. Japanese and
a few excellent American companies are reportedly successful at linking their structure,
strategy and systems with the soft variables. The authors have concluded that a company
cannot merely change one or two variables to change the whole organisation.

For long-term benefit, they feel that the variables should be changed to become
more congruent as a system. The external environment is not mentioned in the McKinsey
7S Framework, although the authors do acknowledge that other variables exist and that
they depict only the most crucial variables in the model. While alluded to in their discussion
of the model, the notion of performance or effectiveness is not made explicit in the
model.

Description of 7S’s
The Hard S’s
Strategy:
Strategy is the plan of action an organisation prepares in response to, or anticipation
of, changes in its external environment. Strategy is differentiated by tactics or operational
actions by its nature of being premeditated, well thought through and often practically
rehearsed. It deals with essentially three questions (as shown in figure 2): 1) where the
organisation is at this moment in time, 2) where the organisation wants to be in a particular
length of time and 3) how to get there. Thus, strategy is designed to transform the firm



from the present position to the new position described by objectives, subject to constraints
of the capabilities or the potential (Ansoff, 1965).

Structure:
Business needs to be organised in a specific form of shape that is generally referred
to as organisational structure. Organisations are structured in a variety of ways, dependent
on their objectives and culture. The structure of the company often dictates the way it
operates and performs (Waterman et al., 1980). Traditionally, the businesses have been
structured in a hierarchical way with several divisions and departments, each responsible
for a specific task such as human resources management, production or marketing. Many
layers of management controlled the operations, with each answerable to the upper layer
of management. Although this is still the most widely used organisational structure, the
recent trend is increasingly towards a flat structure where the work is done in teams of
specialists rather than fixed departments. The idea is to make the organisation more
flexible and devolve the power by empowering the employees and eliminate the middle
management layers (Boyle, 2007).

Systems:
Every organisation has some systems or internal processes to support and implement the
strategy and run day-to-day affairs. For example, a company may follow a particular
process for recruitment. These processes are normally strictly followed and are designed
to achieve maximum effectiveness. Traditionally the organisations have been following
a bureaucratic-style process model where most decisions are taken at the higher
management level and there are various and sometimes unnecessary requirements for a
specific decision (e.g. procurement of daily use goods) to be taken. Increasingly, the
organisations are simplifying and modernising their process by innovation and use of
new technology to make the decision-making process quicker. Special emphasis is on
the customers with the intention to make the processes that involve customers as user
friendly as possible (Lynch, 2005).

The Soft S’s
Style/Culture:
All organisations have their own distinct culture and management style. It includes
the dominant values, beliefs and norms which develop over time and become relatively
enduring features of the organisational life. It also entails the way managers interact with
the employees and the way they spend their time. The businesses have traditionally been
influenced by the military style of management and culture where strict adherence to the
upper management and procedures was expected from the lower-rank employees.
However, there have been extensive efforts in the past couple of decades to change to
culture to a more open, innovative and friendly environment with fewer hierarchies and
smaller chain of command. Culture remains an important consideration in the
implementation of any strategy in the organisation (Martins and Terblanche, 2003).



Staff:
Organisations are made up of humans and it’s the people who make the real
difference to the success of the organisation in the increasingly knowledge-based society.
The importance of human resources has thus got the central position in the strategy of
the organisation, away from the traditional model of capital and land. All leading
organisations such as IBM, Microsoft, Cisco, etc put extraordinary emphasis on hiring
the best staff, providing them with rigorous training and mentoring support, and pushing
their staff to limits in achieving professional excellence, and this forms the basis of
these organisations’ strategy and competitive advantage over their competitors. It is also
important for the organisation to instil confidence among the employees about their
future in the organisation and future career growth as an incentive for hard work (Purcell
and Boxal, 2003).

Shared Values/Superordinate Goals:
All members of the organisation share some common fundamental ideas or guiding
concepts around which the business is built. This may be to make money or to achieve
excellence in a particular field. These values and common goals keep the employees
working towards a common destination as a coherent team and are important to keep
the team spirit alive. The organisations with weak values and common goals often find
their employees following their own personal goals that may be different or even in
conflict with those of the organisation or their fellow colleagues (Martins and Terblanche,
2003).

McKinsey’s 7S Model



Using the 7S Model to Analyse an Organisation
A detailed case study or comprehensive material on the organisation under study
is required to analyse it using the 7S model. This is because the model covers almost all
aspects of the business and all major parts of the organisation. It is therefore highly
important to gather as much information about the organisation as possible from all
available sources such as organisational reports, news and press releases although primary
research, e.g. using interviews along with literature review is more suited. The researcher
also needs to consider a variety of facts about the 7S model. Some of these are detailed
in the paragraphs to follow.

The seven components described above are normally categorised as soft and
hard components. The hard components are the strategy, structure and systems which
are normally feasible and easy to identify in an organisation as they are normally well
documented and seen in the form of tangible objects or reports such as strategy statements,
corporate plans, organisational charts and other documents. The remaining four Ss,
however, are more difficult to comprehend. The capabilities, values and elements of
corporate culture, for example, are continuously developing and are altered by the people
at work in the organisation. It is therefore only possible to understand these aspects by
studying the organisation very closely, normally through observations and/or through
conducting interviews. Some linkages, however, can be made between the hard and soft
components. For example, it is seen that a rigid, hierarchical organisational structure
normally leads to a bureaucratic organisational culture where the power is centralised at
the higher management level.

It is also noted that the softer components of the model are difficult to change
and are the most challenging elements of any change-management strategy. Changing
the culture and overcoming the staff resistance to changes, especially the one that alters
the power structure in the organisation and the inherent values of the organisation, is
generally difficult to manage. However, if these factors are altered, they can have a great
impact on the structure, strategies and the systems of the organisation. Over the last few
years, there has been a trend to have a more open, flexible and dynamic culture in the
organisation where the employees are valued and innovation encouraged. This is,
however, not easy to achieve where the traditional culture is been dominant for decades
and therefore many organisations are in a state of flux in managing this change. What
compounds their problems is their focus on only the hard components and neglecting
the softer issues identified in the model which is without doubt a recipe for failure.
Similarly, when analysing an organisation using the 7S model, it is important for the
researcher to give more time and effort to understanding the real dynamics of the
organisation’s soft aspects as these underlying values in reality drive the organisations
by affecting the decision-making at all levels. It is too easy to fall into the trap of only
concentrating on the hard factors as they are readily available from organisations’ reports
etc. However, to achieve higher marks, students must analyse in depth the cultural
dimension of the structure, processes and decision made in an organisation.



For even advanced analysis, the student should not just write about these
components individually but also highlight how they interact and affect each other. Or
in other words, how one component is affected by changes in the other. Especially the
“cause and effect” analyses of soft and hard components often yield a very interesting
analysis and provides readers with an in-depth understanding of what caused the change.



1. Oraganizational Structure

Chairman

General Manager

Manager Manager
Production and Administation Sales and Export

Asst. Manager Asst. Manager Asst. Manager Asst. Manager
Production Administation Sales Exports

Quality Office Office Office
Controller Superintendent Superintendent Superintendent

Sampler Supervisor Supervisor Supervisor

Clerical Sales Export
Helper
Staff Executives Executives

Office Office Office Office
Assistants Assistants Assistants Assistants



2. Oraganizational Skills
A skill is the ability, knowledge, understanding and judgment to accomplish a
task. Skills may be defined as what the company does best; the distinctive capabilities
and competencies that reside in their organization.

The organization selects and assigns personnel performing work affecting product
quality based on appropriate education skills and experience. The organization has also
a system to assess the competence of its personnel on periodic basis to identify gap in the
performance, if any as well as assessing their training needs to bridge the gap.

Identification of Training Needs:
Training needs may be new training or re-training these are identified once in a
year by department heads of their employees through appraisal system. New employees
or an employee who has assigned new jobs are identified and given needed training.
Training needs of their employee through appraisal system. New training needs of their
employees through appraisal system new employees or an employee who has assigned
new jobs are identified for training.

Training needs are considered at 3 levels:
* Individual level

* Department level

* Organization level

On the job training:
These are types of training given to the employees at the working hours.

* Training regarding grading.

* Hygiene training.

* Assistance by senior employees.

Off the job training:
These are types of training given to the employees in the leisure hours.

* Speeches

* Lectures

* Visuals training



3. 4Strategy

Strategy is a plan an organization formulates to gain a substantial advantage over the
competition. Strategy is the art of dividing and employing a system of activity that
mobilizes all resources towards a valuable goal. It is the determination of basic long term
goal and objective of an enterprise, and the adoption of course of action and the allocation
of resources available for carrying out these goals.

Pricing strategy
Price is an important element as it is revenue generating element of the organization.
All the decisions related to pricing plays an important role because demand is inversely
proportional to price. Price is a competitive weapon, price also determining to profitability
of the company. As a result pricing has become an important managerial function of
marketing.

Pricing strategy of BCCW

The pricing depends on market fluctuations.

The market price is generally 10 % more than the cost of production, which
includes total expenditure.

There is no credit facility formally.

Payment is done on mutual understanding though 30 days are allowed for payment
or through advance payment.

There are no direct customers.



4. Style
In BCCW most of the decisions are taken by Chairman of the firm, they follow
Top Down Style. In the absence Maganers of the respective department takes decision.

Chairman

General
Manager

Manager of the
Dept.

Assistant
Manager

Office
Superintendent

Supervisors

Employees

In BCCW they follow Authoritarian style in decision making. The major
decision regarding operation of the firm are taken by Chairman. Other decisions involving
higher cash flows are participative taken involving Managers and other officials.



5. SYSTEM

Systems are the processes and information flow that link the organization
together. They include formal and informal procedures that govern day-to-day activity
covering everything from management information systems at the point of contact with
the customer.

The formal and informal procedures, including innovation systems,
compensation systems, management information systems, capital allocation systems
that govern everyday activity.

Inventory Control System

Inventories are valued providing for obsolescence, as under :

* Raw materials, production consumables, construction material and store and spares
are valued at low cost (computed on weighted average basis.) and net realizable value.

* Finished goods, semi finished goods and work in progress is valued lower than cost
and net realizable value. Cost for this purpose includes direct material, direct labour,
excise duty and appropriate overheads for bringing the inventory to its present location
and condition.



6. STAFF

BCCW Staff are classified as follow:
* Technical staff.

* Clerical staff.

* Production staff.

* Labourers.

Duties and Responsibilities

Technical staff: Clerical staff:

* Machineries check * Accounting

* Quality maintenance * Maintaining records

Production staff: Labourers:
* Supervisory duties * Manufacturing.

* Raw material handling * Loading.

* Material handling.

* Processing

1. Every employee shall at all times diligently and faithfully serve the company and shall
devote his whole time and attention exclusively to the business and interest of the company
and to the best of his skill carry out his duties and shall attend work punctually at the
place where he is posted. Every employee shall hold himself in readiness to perform any
duties required of him by his superiors to the best of his ability.

2. An employee shall not directly or indirectly engage in any other profession or enter the
services for any part of his time .

3. Employees must not enter or pass through departments other has those in which they
are employed unless it is necessary in the course of their duties to do so.

4. Each employee shake keep his machine or work place clean and tidy.

5. Any breach by the employee shall be constrained as act of misconduct and the employee
shall be liable to punishment in accordance to company rules.



7. SHARED VALUES
Shared values guide employees towards desired behavior originally called super
ordinate goals; the guiding concepts and principles of the organization – values and
aspirations, often unwritten – that go beyond the conventional statements of corporate
objectives. The fundamental ideas around which a business is built; the things that
influence a group to work together for a common aim.
Shared values are what engender trust values are the identity by which a company
is kwon throughout its business areas. These values must be explicitly stated as both
corporate objectives and individual values. These are the company level beliefs, mindsets
and assumptions that shape how an organization behaves.



SWOT ANALYSIS



SWOT ANALYSIS

Here is the analysis about the Strengths, Weaknesses, Opportunities and Threats
of BCCW.

STRENGTHS:

The biggest strength of BCCW is that it is the only company in coffee industry
with a complete chain of coffee operations.

BCCW carries its operations right from the growing of coffee to the consumption
of coffee by the final consumer.

It grows coffee in its own land, procures it, carries productions, exports it,
produces ready coffee products and has also conquered the domestic market.

All its competitors are indulged only in few activities but BCCW manages a
complete chain of its operation.

Among BCCW’s biggest strengths are the two curing works, strategically located
in Chikmagalur and Hassan with a combined installed capacity of 1 million bags.
Having our own curing works aids in enabling complete control over grading standards
and flexibility. Thus ensuring quality and efficiency.
A highly disciplined and dedicated network of over 42 agents who operate throughout
the major coffee growing areas of India form the back bone for our coffee procurement
chain.

Our vertically integrated infrastructure ensures that the coffees never need to
leave the able hands of BCCW until final dispatch/shipment.

Strength may be its size. As it is one of the biggest coffee curing company, it has
even advantage in price stabilization (volatility).

WEAKNESS:

There are no major weaknesses but one of its weakness is the higher quality
coffees in the world market such as Brazilian coffee, Kenyan coffee etc.. which are of the
best quality and rate in the world market of coffee.



OPPORTUNITIES:

The overseas market demand for coffee is one of the biggest opportunities for
BCCW.

The demand by European countries and many other countries of the world for
Indian coffee has created and also creates huge market in future.

Globalization and liberalization has played a very important role in these overseas
dealings of BCCW.

THREATS:

New entrants in Indian market for coffee are one of the biggest threat for BCCW.
However it has not yet been a possibility because of its high costs.

Other than that here is a threat of changing quality of coffee and its rates due to
natural reasons. Change in money value in foreign exchange is also a threat to BCCW.

SWOT ANALYSIS OF BCCW

STRENGTHS WEEKNESS

Huge demand for coffee products. Inadequate Transportation

Availability of Raw coffee Focus only on Rural Segment

Man Power New employees have less social
Location security.
OPPERTUNITIES THREATS

To export its products to other Market uncertainty
countries Competition
New product innovation
Employment



LEARNING EXPERIENCE

48 |Pages
51 H.R. Institute of Higher Education, Hassan.


Learning Experience
It is a very good opportunity to correct or evaluate our self how capable we are to
adopt new changes or interested to learn the things in real or actual working conditions.
When we enter the organization the atmosphere itself teaches what we have to do and
what are all the duties and responsibilities.

In BCCW, I was thought how things works in an organization, how the decision
–making is done and on what basis is done.

In BCCW the co-ordination between the employees will create a unity among
employers which is very helpful in decision making and building a good future to the
organization & carry out the business in a right way.

Uniformity which is very essential elements that management should maintain
among their employees & outlook of an employee will also create a impression on the
minds of other about their taste, preference, values & principles.

Punctual and honesty are the other important thing that I learnt in the organization.
I was thought how to handle the situation when there is trouble in the business operations
and how to overcome from it .
Finally I had a practical experience of real world organization and how things
works in the organization.

OBJECTIVES

The following are some of the objectives of BCCW.

⇒ Foreign dealings improvements and maximization.
⇒ Revenue maximization.
⇒ Creating a monopolistic market in India.
⇒ Adopt new methods for profit maximization.
⇒ Promote Indian coffee market.
⇒ To provide the consumer a superior coffee-chicory blend that he or she has been
drinking till date.
⇒ To provide a superior product than what others have been offering.
⇒ To be available in every possible retail outlet which ensures convenience and ease
in availability.
⇒ To provide the best quality of coffee- chicory blend at value for money prices.

49 |Pages


FINDINGS

The following are some of the findings as per me by working in BCCW.

It is highly successful in the world coffee market and has grabbed huge share of
export market of coffee in India.

It is the aim of BCCW to make Indian coffee popular all over the world.

A highly disciplined coffee procurement network which has been established,
natured over the liberated years following 1961.

All the market restructuring & disturbances are handled by high flexibility of
production in its curing stations having over 1 million bags capacity.

It has its complete control over grading standards and market needs.

It is managed by highly skilled and professional people in all its departments
which has resulted in success of BCCW.

DRAWBACKS

But there is no business without drawbacks. Even BCCW has few drawbacks as
any other business and this is noticed by me personally.

The procurement process goes very accurately as mentioned above but only to a
certain extinct. It means, until the beans are processed in machines, technology is used to
highest extinct. But after the beans come out of machines completing all the processes
usage of technology becomes nil. The rest of the work is totally done by manual labours
which I feel is a waste of time and money to a certain extinct.

Processes such as separations of different varieties of beans, grading, filling them
into bags and also loading into trucks is done by human labour for which technology can
be used.

50 |Pages


RECOMMENDATION

Further new improved machines can be installed to carry on the process of
bagging, separations etc..

For loading the bags into trucks, tread mill kind of machines can be used which
reduces the effort and number of manual labour and speed can be picked up.

A good office automation process may be carried out by replacement of outdated
computers and a improved internet network within the organization.

So rather than the above few drawbacks of BCCW head office, everything else
is not blamable and rest is taken care in a efficient way by the people and the authorities
of this organization who have the ability to manage the problems effectively and manage
the day to day functioning of BCCW.

51 |Pages


CONCLUSION

As mentioned earlier and also by going through the whole company profile and
other data, it is clear that BCCW as a very big name and share in the whole coffee
market of the world and is one of the fully integrated coffee companies of Asia. Its
exports make BCCW as a second largest origin exporter in the world. Their client list
includes some of the world’s biggest and most discerning roasters, MNCs, trading
company and retail chains.

By working in such a successful organization, I have come to know lot about
this organization’s functioning and its markets. This is not surprisingly because of the
rich, unique blend of elements, vast, fine estates, exacting quality control over processing,
absolute commitment and integrity and most significantly, a sense of dynamism of striving
for the extraordinary and lots more to offer, BCCW is one of the most professional in
its nature. They continuously strive to identify customer needs & constantly work on
ways to present Indian coffee to the world market and we can say that the competition
for BCCW comes not from within India but from other coffee nations such as Brazil,
Columbia and Kenya. Even though there is competition from so many courtiers, this
company tries very hard & is also successful to grab a huge share in the world market.

This company has so for captured a major parts of Indian market and yet is
trying very hard to conquer the whole market within few years from now.

And by personally experiencing the functioning of BCCW and also by seeing its
business strategies, I can say no wonders it will definitely achieve its goals in the mere
future.

52 |Pages


SUMMARY OF LATEST
ANNUAL REPORT

53 |Pages


CONTENTS
Sl. Page
No. Particulars No.
1 Industry Profile
History of Coffee 5
Coffee industry in India 6
Overview 7
Export highlights (2006-07) 8

2 Company Profile
1. Background and Inception of the Company 10
2. Vission, Mission, Goals and Quality Policy 12
3. Nature of Business Carried 13
4. Product Profile 15
5. Workflow model 18
6. Functional Areas 21
7. Area of Operation 26
8. Compititors 27
9. Organization Structure 28
10. Organization Chart 29
11. Future Growth and Prospectus 30

3 McKinsey’s 7S Model 31-44

4 SWOT Analysis 45-47

5 Summary of Latest Annual Report 48-50

6 Learning Experience 51-55


M/s Bharathi Coffee Curing Works
B.M. Road, Hassan -573201.
55 |Pages
49

Consolidated Balance Sheet as on 31-03-2008

Capital & Liabilities Amount Amount Capital & Liabilities Amount Amount

Capital Account: Assets
Balance as per last Balance Sheet 17, 485,436.51 Fixed Assets:
Add: Capital A/c as per Lorry A/c 627,092.00 As per schedule-3 9115726.74
18,112,528.51 Lorry-1 17545.00
Add: Capital A/c as per Less: Depreciation@ 30% 5264.00 12281.40
Lorry-2 13268.00
H.R. Institute of Higher Education, Hassan.

Shares A/c 4,163,753.61 22,276,282.12

Less: Depreciation@ 30% 3981.00 9287.60
Loan from banks & others:
As per schedule -1 31,978,068.70 Deposits & Advances
KEB Deposit 103953.00
Capital Reserve: Telephone Deposits 25743.00
Investment subsidy from Corporation Bank 525000.00
Karnataka Government 3000,000.00 Advance IncomeTax 203000.00
Advance Tax paid (Sales tax) 8000.00
Sundry Creditors: TDS 214129.00 1259966.00
As per Schedule -2 25,203,313.00 Shares Co-operative
society 5000.00
Sundry Debtors: 13175182.00

M/s Bharathi Coffee Curing Works
B.M. Road, Hassan -573201.
Consolidated Balance Sheet as on 31-03-2008
50 |Pages
56

Capital & Liabilities Amount Amount Capital & Liabilities Amount Amount

CST Payable 252,194.00 Loans & Advances:
VAT Payable 501,224.30 Advance to Staff 19555.00
TDS Payable 44,543.00 797,961.00 Export Receivables:
Asper Schedule-5 59658626.00
83255625.62 83255625.62
H.R. Institute of Higher Education, Hassan.


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