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There has been an unusual growth in market shortly after the beginning of
this century. The main reason is the increase in demands of the people and due
to the consumer behavior.
Entrepreneur has been recognized as the engine of economic
development and industrialization small business serves as the seed bed of
entrepreneur ship. Small-scale sector plays a very vital role in Indian economy
characterized by abundant labour and scarce capital. In view of its vast
employment potential and its overwhelming role in the transportation of the
rural economy. Small sector has been assigned high priority in government
policies and planning.
Himachal is known as the fruit bowl of India. The climate of Himachal
Pradesh is suitable for the production of every type of fruit. Simultaneously the
production of fruits is also very high here.
Through the fruits grown here are sold in the market but a large part of
unmatured and unripe fruit and vegetables dont fetch satisfactory price. But
these fruits do not lack in nutrition value.
In order to utilize these fruits and vegetables as much it is important to
have the proper knowledge of the product made out of them. The farmers can
process these fruits in many ways and can fetch good cash.
Therefore the horticulture department of Himachal Pradesh has installed
nine different fruit processing units at different places in Himachal Pradesh. The
main objective of these nine processing centers is to encourage the farmers to
grow more and more fruits and vegetables and to teach them how to preserve
these, to taste them during off-season.
The present report highlights the various problems which the Himachal
Pradesh Horticulture Produce Marketing and Processing Corporation has been
facing and the recommendations which can improve these situations.


Food processing involves any type of value addition to agricultural or
horticultural produce and also includes processes such as grading, sorting,
packaging which enhance shelf life of food products. The food processing
industry provides vital linkages and synergies between industry and agriculture.
The Food Processing Industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The government has
accorded it a high priority, with a number of fiscal reliefs and incentives, to
encourage commercialization and value addition to agricultural produce, for
minimizing pre/post harvest wastage, generating employment and export
growth. India's food processing sector covers a wide range of products fruit and
vegetables; meat and poultry; milk and milk products, alcoholic beverages,
fisheries, plantation, grain processing and other consumer product groups like
confectionery, chocolates and cocoa products, Soya-based products, mineral
water, high protein foods etc.
Indian food processing industry is widely recognized as a 'sunrise
industry' having huge potential for uplifting agricultural economy, creation of
large scale processed food manufacturing and food chain facilities, and the
resultant generation of employment and export earnings. The industry is
estimated to be worth around US$ 67 billion and employing about 13 million
people directly and about 35 million people indirectly. The food processing
sector in India is geared to meet the international standards. Food Safety and
Standards Authority of India has the mandate to develop standards and also to
harmonise the same with International Standards consistent with food hygiene
and food safety requirement and to the conditions of India's food industry.
Two nodal agencies, Agricultural & Processed food products Export
Development Authority (APEDA) and Marine Products Export Development
Authority (MPEDA), were formed for promoting exports from India. MPEDA
is responsible for overseeing all fish and fishery product exports; APEDA, on

the other hand, holds responsibility for the exports of other processed food

Advantage in India

India is one of the largest food producers in the world

India has diverse agro-climatic conditions and has a large and diverse raw
material base suitable for food processing companies
India is looking for investment in infrastructure, packaging and marketing
India has huge scientific and research talent pool
Well developed infrastructure and distribution network
Rapid urbanisation, increased literacy, changing life style, increased
number of women in workforce, rising per capita income- leading to
rapid growth and new opportunities in food and beverages sector
50 per cent of household expenditure by Indians is on food items
Strategic geographic location (proximity of India to markets in Europe
and Far East, South East and West Asia).

India's Position in World's Production

Largest producer of milk in the world (105 million tonnes per annum)
Largest livestock population(485 million tonnes per annum)
Second largest producer of fruits & vegetables (150 million tonnes per
Third largest producer of food grain (230 million tonnes per annum)
Third largest producer of fish (7 million tonnes per annum)
52% cultivable land compared to 11% world average
All 15 major climates in the world exist in India
46 out of 60 soil types exist in India
20 agri-climatic regions

Key Growth Drivers of Food Processing Sector in India

Increasing spending on health and nutritional foods.

Increasing number of nuclear families and working women
Changing lifestyle
Functional foods, fresh or processed foods
Organised retail and private label penetration
Changing demographics and rising disposable incomes

Key Opportunities in Food processing Sector

Processable varieties of crop

Contract farming
Investments in infrastructure through Public Private partnership (PPP)
Mega Food parks
Integrated cold chain
Food safety Management Systems

Key segments in the food processing industry

Fruits & vegetable processing

Fruits and vegetables is one of the most important and fast growing sub-
sectors of the food processing sector. Over the last few years, there has been a
positive growth in ready-to-serve beverages, fruit juices and pulps, dehydrated
and frozen fruits and vegetable products, tomato products, pickles, convenience
vegspice pastes, processed mushrooms and curried vegetables reasons being
increase in consumption by nuclear families, working women, students and
single employees staying alone.
There are abundant investment opportunities are there in expanding the
export market. An increasing acceptance of new products with market
development efforts has been witnessed lately given the fact that there is a good
international demand for certain fruits and vegetable products. The Indian food

processing industry is primarily export oriented. India's geographical situation
gives it the unique advantage of connectivity to Europe, the Middle East, Japan,
Singapore, Thailand, Malaysia and Korea. In 2008-09, India's export of fresh
fruit and vegetable was estimated at US$ 0.79 billion and in case of processed
fruits and vegetables it stood at US$ 0.68 billion.
Meat Processing
In meat and meat processing sector, poultry meat is the fastest growing
animal protein in India. The estimated production of meat was 6.5 million
tonnes during 2007-08. India exports more than 500,000 million tonnes of meat
of which major share is buffalo meat. Buffalo meat production during 2008-09
is estimated at 2.8 million tonnes and out of this about 21% is exported. Indian
buffalo meat is witnessing strong demand in international markets due to its
lean character and it's near organic nature. India is the 6th largest exporter of
bovine meat in the world.
In 2008-09, India's export of meat products (including buffalo meat,
sheep/goat meat, poultry products, animal casings and processed meat) stood at
U$ 1.25 billion.

Dairy processing
India is number one milk producing country in the world with an
estimated production of 105 million tonnes in comparison to world milk
production of 693 million tonnes during 2015-16. Buffalo milk is estimated to
account for 57% of the total milk production in India.
India has a unique pattern of production, processing and
marketing/consumption of milk, which is not comparable with any large milk
producing country. Approximately 70 million rural households in the country
are engaged in milk production. Over 11 million farmers are organised into
about 0.1 million village Dairy Cooperative Societies (DCS). About 35% of
milk produced in India is processed. The organised sector (large scale dairy
plants) processes about 13 million tonnes annually, while the unorganized sector

processes about 22 million tonnes per annum. In 2017-18, export of dairy
products was estimated at US$ 1.21 billion.
Fisheries Sector
In India nearly 10 million people, living in 4,000 coastal villages and
more number of interior villages, depend on fisheries sector. The export of
marine products has steadily grown over the years - from a mere US$ 0.84
million in 1961-62 to US$ 1,849.08 million in 2015-16. Marine products
account for approximately 1.1 % of the total exports from India.
Frozen shrimp continued to be the single largest item of export in terms
of value accounting for about 44% in the total export earnings. In terms of
quantity, fish accounted for the major share at 40% (shrimp 21%).European
Union (EU) was the largest market during the year 2015-16 with a percentage
share of 32.6% followed by China 14.8%, Japan 14.6% , USA 11.9%, South
East Asia 10%, Middle East 5.5% and Other Countries 10.6%.
Grain processing sector
India during the year 2016-17, accounted for 8.73% of the world's oilseed
production of 7.63%; 7.31% of the world's oil meal production of 6.74%; 7.53%
of the world's meal export of 6.78%; 6.03% of the world's oil production of
5.86%; 9.22% of world oil imports of 9.58% and 9.33% of the world's oil
consumption of 9.28%.
On the export front, export of oil meals, oilseeds, minor oils (fats) and
castor oil during the financial year 2007-08 is reported at 62.6 lakh tonnes
valued at US$ 2.32 billion against the exports of 58.9 lakh tonnes valued at US$
1.39 billion in the previous year.
The solvent extraction processing of oilseed, oilcakes and rice bran
during 2015-16 is reported at 121.2 lakh. However, the overall production of
solvent extracted oils during 2015-16 form rice bran, oilcakes & minor oilseeds
and soybean is reported at 19.4 lakh tonnes.
Consumer food industries
Consumer food industry includes pasta, breads, cakes, pastries, rusks,
buns, rolls, noodles, corn flakes, rice flakes, ready-to-eat and ready-to-cook
products, biscuits etc. Bread and biscuits constitute the largest segment of

consumer foods. India's biscuits industry is the largest among all the food
industries and has a turnover of around US$ 0.64 billion. India is known to be
the second largest manufacturer of biscuits, the first being USA.
Indian consumer food inustry is classified under two sectors: organised
and unorganised. Bread and biscuits are the major part of the bakery industry
and cover around 80 percent of the total bakery products in India. Biscuits
stands at a higher value and production level than bread. This belongs to the
unorganised sector of the bakery industry and covers over 70% of the total

Major Players in Indian Food processing

ITC Limited
Parle Products Pvt. Ltd.
Agro Tech Foods
Perfetti India Ltd.
Cadbury India Ltd.
PepsiCo India Holdings
Nestle India Pvt. Ltd.
Britannia Industries Ltd.
Hindustan Lever Limited
MTR Foods Limited
Godrej Industries Limited
Gits Food Products Pvt. Ltd.
Dabur India Ltd.
Conagra Foods
Nissin Foods


Foreign Direct Policy in Food processing Industry

100% FDI is allowed under automatic route in food processing industry

and food infrastructure including food parks, distillation & brewing of alcohol,
cold storage chain and warehousing. The total inflow of Foreign Direct
Investment in food processing sector during the last five years since April 2014-
March 2016 is US$ 409.41 million.

Future Outlook

Indian food industry expected to grow to US$ 280 billion by 2017 and
generate an additional employment for approximately 8.2 million people. Also,
food consumption in India is estimated to grow at a CAGR of 8.32 % by 2018.
Futher, it is expected that processed food output will grow at a strong 7 %
CAGR in terms of value from 55.6 billion US$ in 2005 to 95.6 billion US$ in


Himachal Pradesh Horticultural Produce Marketing and Processing
Corporation Ltd. popularly known as hpmc, was established on the 10th June,
1974 as State Public Undertaking with the objective of marketing of fresh fruits
and processing of all types of surplus fruits. It has developed the most modern
system of marketing in the country. The unique characteristics of this
organization are that it provides all the services to the fruit growers, which are
required for marketing of fruits. The Corporation has set up two modern Fruit
Processing Plants and has a vast range of processed products.
Between the years 1974-82, the Corporation engaged itself in the
establishment of pre & post harvest infrastructure, comprising of a net work of
mechanically operated pack houses, cold storages, transshipment centres and
fruits processing plants, besides a net-work of sales offices in the terminal
markets. The entire infrastructure of grading/packing, pre-cooling and cold
storages has been established in rural areas for providing pre and post harvest
facilities to the farmers at their door step. To day hpmc has emerged as one of
the leading and largest organisation for the post - harvest handling of
horticultural produce in India. Under the auspices of this organisation in the past
few years, the entire fruit industry has started experiencing a radical change
from conventional to modern marketing system. hpmc has contributed
substantially to mechanised grading and scientific packing of fruits, substitution
of conventional wooden cases by tray - packed telescopic cartons distribution
network, introduction of juice dispensing machines, making thereby the health
giving pure apple juice a common man's drink, manufacture of apple, pear juice
concentrate and development of a sound base for the export of apple and other
fruit products. It is a service oriented organisation with a commitment to ensure
remunerative returns to the fruit growers and nutritive quality products at a
reasonable price to the consumers.

Himachal A Fruit State

Himachal Pradesh, which is endowed with enormous natural beauty and
resources has a total geographical area of 55,675 kms. It is rich in natural
resources and has varied agro-climatic conditions suitable for the development
of horticulture. The State has a vast potential of horticulture and has taken a leap
forward to produce different varieties of fruits from tropical to temperate, which
has made it the fruit bowl of the country. It has also helped in the economic
upliftment of rural population and has also generated employment. The total
area under fruit in HP is about 2.07 Lac hectares with a production of about 5.00
Lac MTs of all kinds of fruits. Apple is the major fruit accounting for more than
40% of total area under fruits and about 88% of total fruit production
The agro-climatic conditions of Himachal Pradesh are extremely suitable
for growing different varieties of Fruits. The state is successfully growing fruits
such as apple, pear, peach plum, almond, walnut, citrus, mango, raisin grapes
etc. There has been tremendous progress in fruit growing during the last three
decades. Commercially, apple is the most important of all the fresh fruits grown.
It has a rich collection of as many as 450 cultivars of apples collected from all
over the World. The main varieties of commercial importance grown
predominantly, however, are Royal Delicious, Rich-A-Red, Red Delicious and
Golden Delicious. Himachal Pradesh currently accounts for over 4 lac tonnes
of apple production annually.
It has been recognized as the Apple State of India for being adjudged as
the best producer of Quality Apples. Here farmers are encouraged to grow the
world's finest varieties of apple. The State Department of Horticulture helps
them by making available the most modern orchard technology and expertise
and the hpmc looks after the marketing and processing requirements of it.

Market Intervention Scheme: (MIS)
The Government of Himachal Pradesh has introduced the policy of
Market Intervention Scheme (MIS) for the procurement of Mango, Apple and
Citrus Fruits in the State. In order to implement the Market Intervention Scheme
of the State Government, the hpmc, being the premier fruit marketing agency,
procures the unmarketable fruits which are processed under most hygienic
conditions in its Processing Plants. The efforts made by the Corporation have
resulted in stabilizing the prices of the fruits in the market. Apart from fruits
procured under MIS, hpmc also procures other fruits like Peach, Pear, Plum,
Litchi, Almonds etc. grown in the State, for marketing and processing to
increase the capacity utilisation of the Plants and to assist the farmers of the
State in getting remunerative returns for their produce. Procurement prices of
the fruits under the Market Intervention Scheme for last five years are as under:
(Rate: Rs./Kg.)

Year Mango Apple Kinnow/Orange Galgal

Seedless Grafted B Grade C Grade

2009-10 3.08 3.75 3.75 4.35 3.75 2.60

2010-11 3.08 3.75 3.75 4.35 3.75 2.60

2011-12 3.08 3.75 3.75 4.35 3.75 2.60

2012-13 3.33 4.00 4.00 4.60 4.00 2.85

2013-14 3.33 4.00 4.00 4.60 4.00 2.85

2014-15 3.58 4.25 4.25 4.85 4.25 3.10
2015-16 3.58 4.25 4.25 4.85 4.25 3.10
2016-17 3.58 4.25 4.25 4.85 4.25 3.15
2017-18 3.58 4.25 4.25 4.85 4.25 3.15

Export of Fruit and Fruit Products

Among all fruits, Apple being the main crop of the State occupies place
of pride in its economy. The major commercial varieties grown in the State are;
Royal Delicious, Red Delicious, Rich-A-Red Delicious and Golden Delicious.
At present, Himachal Pradesh produces over 4.00 lakh tonnes of Apples
annually which is cultivated at the altitude ranging between 6,000 to 10,000 ft.
above sea level and is free from pollution. The quality of Himachal Apple meets
the entire export standards. In the past hpmc has exported quality apples to Iran,
UAE, Sri Lanka, Singapore and U.K. Fresh apples are available from August to
November on firm demand.

Standard Packings for Export

Size of Apple No of Apple Pocket No of trays No of Apples

in a Tray in a Carton in a Carton

Extra Large (80 to 85 mm) 20 4 80

Large (75 to 80mm) 20 5 100

Medium (70 to 75mm) 25 5 125

Small (65 to 70mm) 30 5 150

Extra Small (60 to 65mm) 35 5 175

Grade Standards

Only two Quality Grade Apples i.e. EXTRA FANCY and FANCY
CLASS 1 are offered for export. The broad parameters of the Quality are that

the fruit must be sound, clean, fully developed, coloured, juicy and full of
flavour and freshness.

Tray Packed Cartons

Tray Pack Cartons have specially been developed for export of Himachal
Apples. It consists of an inner fibre board carton, a series of moulded trays and
an outer telescopic lid which fits right down over the sides and end of the inner
carton. Apples in Tray Pack cartons are wrapped as per requirement of the
buyer. The net weight of apples in the carton is not less than 38 lbs (17 kg.) but
in practice it is usually over 40 lbs (18 kg) depending on the variety. The inner
dimensions of the carton are 500x300x278 (ht) mm and inside dimensions of
the outer cover are

Agri Export Zones for Apple in Himachal Pradesh

The formation of Agri Export Zones in select areas of different States of

the Country came into being in the year 2016-17. The State of Himachal
Pradesh was selected for setting up of Agri Export Zones for Apples in
September, 2017. Six Districts of the State; Shimla, Sirmaur, Kullu, Mandi,
Chamba and Kinnaur were covered under the project. The main objective of
setting of these Zones in the country is to provide access to the International
Market to agricultural products from the country. The hpmc has been
nominated as Nodal Agency and the Department of Horticulture, University of
Horticulture & Forestry, State Electricity Board and the Department of Excise &
Taxation would be responsible for the implementation of this project. Under
this project the main emphasis would be on:

Production and Quality enhancement programme

Modernisation of nurseries.

Replacement of old and unproductive plants.

Area expansion with healthy and disease-free planting material.

Mass production of new varieties for quicker area expansion.

Rejuvenation of old orchards.

High-density planting.

Increasing pollinisers and pollinating agents.

Synchronization of flowering.

Balanced use of micro-nutrients.

Development of irrigation sources.

Disease forecasting system to regulate the pesticide usage.

Adoption of integrated pest management.

Upgradation of existing lab facility for soil, water, leaf, quality


Development of Agri Information System

Technology Transfer

Training of farmers.

Demonstration and Extension Services.

Post-Harvest Management

On-farm intermediate storage.

Classic Rates.

Improvement in Grading.

Quality upgradation and maintenance for premium market and


Modern Grading Lines and Cold Storages.

Export Promotion & Marketing

Research & Development

The total project cost is Rs. 5707.50 lakh out of which the contribution of
different Central Government Agencies namely; APEDA, National Horticulture
Board, Ministry of Food Processing Industries, Ministry of Agriculture,
Ministry of Commerce etc. would be Rs.2757.50 lakh and the investment of the
private sector would be of the order of Rs.2950.00 lakh.
For implementation of Horticultural Technology Mission programme in
Himachal Pradesh for X Plan period, the Govt. of India has approved Rs. 80.00
crores. The State of Himachal Pradesh had submitted an action plan for the
implementation of Horticulture Technology Mission programme during 2014-
15. At the time of launching of the programme an amount of Rs.3.58 crores was
released as 1st Installment for the implementation of Mini Mission-II activities.
As per the guidelines of the scheme, the funds for Mini Mission II, III &
IV would be routed through central small farmers Agri-Business consortium for

further release to HPMC. The State has designated HPMC as fund routing

hpmc has established two Fruit Processing Plants with a combined

capacity to process about 20,000 MT of fruit every year and has acquired a third
on lease hold basis . These plants are located at Jarol (Sundernagar) in Mandi
District and Parwanu in Solan District. The Parwanu Plant has all the latest
systems like aseptic bulk packaging, tetrapak filling, spiraflow equipment, hi-
tech continuous pulper line and pomace drying unit. hpmc has also taken over
FP Jabli on lease basis from the HIMPROCESS during the year 2015 and this
has helped in increased production of juices, drinks and other fruit based
The hpmc has set up a chain of Packing Houses, at Gumma, Rohru,
Jarol-Tikkar, Oddi, Bhunter and Patlikuhl, Grading Houses at Rajgarh,
Chindi, Rekong Peo and Chailchowk. Cold Storages in producing areas are
at (Gumma, Rohru, Jarol-Tikkar, Oddi and Patlikuhl). At present hpmc has pre-
cooling facilities at Oddi and Patlikuhl. Beside, these Cold Storages in
producing areas, hpmc has established Cold Storages in terminal markets at
Parwanu, Delhi, Mumbai, and Chennai. It has Transhipment Centres, Canning
Units and Sales Offices in all the principal fruit markets of the country. hpmc is
also making Himachal Apples available to world community through exports.
Marketing Network:-
A well-established marketing network has been created throughout
the country.
Regional Office, Delhi - Bhopal, Jaipur, Lucknow.
Regional Office, Azadpur Delhi (Subzi Mandi)
Regional Office, Mumbai - Pune, Ahemdabad, Nagpur.
Regional Office, Chennai - Hyderabad, Bangalore, Cochin.
Regional Office, Kolkata.
Regional Office, Chandigarh
Regional Office, Shimla - Gumma, Chopal, Nerwa, Theog, Dehradun
and Rajgarh.

Regional Office, Kullu - Patlikuhl, Bhunter, Chindi, Chailchowk, Banjar
and Thunag.
Regional Office, Kangra - Baijnath, Kandrori, Chamba.
Regional Office, Rohru - Jubbal, Tutupani and Sheelghat
Regional Office, Rampur Rampur, R/Peo, Jarol Tikkar, Oddi, Dalash,
Gopalpur and Sarahan.

Importance of Marketing:-
The objective of all business enterprises is to satisfy the needs and wants
of the society. Marketing is therefore the focal point of all business activities.
Production or purchases has no meaning unless is able to market the goods and
The customer oriented marketing has given rise to a new philosophy in
business known as Marketing concept. Under this the creation of customer and
satisfaction of his wants is the justification of the business.

Needs & Wants Products (Goods Value, Cost & Exchange &
& Services) Satisfaction Transaction

Core Concept of Marketing:-

Market & Markets Relationships &
NEEDS, WANTS & Prospects
DEMAND Networks
Marketing starts with human needs and wants. It is important to
distinguish among needs, wants & demands. A human need is a state of
deprivation of some basic satisfaction (Food, clothing, shelter etc.)
Wants are desires for specific satisfies of needs. Demands are wants for
specific products that are backed and willingness to buy them.
Wants become demand when supported by purchasing power.
A product is anything hat can be offered to satisfy any needs or wants.
Value, Cost and Satisfaction:-
Value is the consumers estimate of the products overall capacity to
satisfy his or her needs. Every product involve different cost.

Exchange and Transaction:-

Exchange is the act of obtaining a desired product from someone by
offering something in return.

Relationships and Networks:-

Relationship marking is the practice of building long term satisfying
relations with key parties - customers, dealers, suppliers, distributors in order

to retain their long term preference and business. Relationship marketing results
in strong economic, technical and social ties among the parties.

The ultimate outcome of relationship marketing is the building of a
unique company asset called a marketing network. A market network consist of
the company and all of its supporting stakeholders: Customers, employees,
Supplies, Distributors, Retailers, advertisement agencies and others with whom
it has built mutually profitable business relationships.

Marketing Mix
In order to satisfy the needs of its customers, a business firm must
determine a marketing mix.
Marketing mix is a blending of decisions in the 4 Ps. It is a system
comprising the sub systems of products, price, promotion and place. These
elements the marketing mix are inter related because decision in one area affects
the other. This concept is dynamic in nature and keeps on changing with the
changes in market condition and the environment.
(1) Product:- Product element of the marketing mix involves planning,
designing and developing the right type of product and services to satisfy
customer need. It involves decision with regard to the following:
(a) Product size
(b) Product quality
(c) Product design
(d) Product range
(e) Package etc.
(2) Price:- This component of marketing mix involves decision regarding
base price, policy, discount etc. The horticulture Deptt Shimla and
corporate office of HPMC, Shimla prepares the price list of the products.
(3) Promotion:- It is concerned with informing and persuading the
customers about the products of the firm. The HPMC fruit processing
centre uses promotion by trade fairs seminars, fruit shows, newspaper etc.
(4) Place (Physical Distribution):- This component of marketing mix is
concerned with linking the customer and buyer. It involves decision

regarding number of middlemen, means of transport etc. various sales
counter, mobile vans and whole sales are the methods of physical
distribution of the HPMC products.
Importance of the topic:-
The aim of marketing is to meet and satisfy target customers needs and
wants. The field of consumer behavior studies how individuals groups and
organizations select, buy, use and dispose of goods and services ideas and
experiences to satisfy their needs and desires.
Understanding consumer-buying and knowing customers are never
simple. Customers may state their needs and wants but act otherwise. They may
not be in touch with their deeper motivations. They may respond to influences
that change their mind at the last minute. Nevertheless marketers must study
their target customers wants, perceptions, preferences and shopping and buying
Studying consumers buying behaviour provides clue for developing new
product features, prices, channels, messages and other marketing mix elements.

Objectives of the study:-

a). To collect the information about the customers preferences, tastes,
perceptions in the region.
b). To find out brand awareness among the customers.
c). To measure the brand loyalty.
d). To find out media habits of the consumers.
e). To measure the advertisement effectiveness.
f). To suggest remedial measures to increase the sale volume.
Buying Behavior:-
Consumer buying behavior varies with the type of buying decision.
Complex and expensive purchases are likely to involve more buyer deliberation
and more participants. Mr. Assel distinguished four type of consumer buying
behaviors on the degree of buyers involvement and the degree of differences
among brands.
a). Complex buying behavior:-

Consumers engage in complex buying behavior when they are highly
invested in a purchase and awareness of significant differences among
b). Dissonance reducing buyer behaviour:-
The customer purchases a product after the purchase, consumer might
experience dissonance that stems from noticing certain disquieting
features of the product or hearing favourable things about other products.
Thus marketing communication should aim at supplying beliefs and
evaluations that help the consumer feel good about his or her brand
c). Habitual Buying Behaviour:-
Products are bought under conditions of low consumer involvement and
the absence of the significant brand differences. Consumer has little
involvement in the product category.
d). Variety seeking buying behavior:-
Some buying situations are characterized by low consumer involvement
but significant brand differences. Here consumers do a lot of brand
changing. Brand changing occurs to bring the variety rather than
The market leaders and the minor brands in the product category have
different marketing strategy. The market leader will try to encourage
habitual buying behavior by avoiding out of stock condition dominating
the shelf space, sponsoring frequent reminder advertising and by other
promotional activities.

Five Stage Model of the Buying Process:-

Information facilities the consumer to know about competing brand and
their features. All the available brands of similar products in marketing are
collectively termed as Total Set. Consumer may not aware of all the existing
brands. He may just know about few brands. Set of brands is termed as
awareness set. Among known brands only few of them suit the consumers
requirements, this is called consideration set. From consideration set

consumer may choose two or thrice brands. This constitutes Choice set. From
choice set consumer can decide which brand he has to purchase.


Personal Cultural Psychological Social

1. Age & Life 1. Religion 1. Motivation 1. Preference
2. Life style 2. Social Class 2. Perception 2. Family background
3. Personality 3. Learning 3. Status
4. Economic 4. Attitude
5. Circumstances 5. Beliefs
6. Occupation

Products of hpmc:-
The hpmc is producing variety of processed products. It is the main
producer of Apple Juice Concentrate in the country. Besides, Apple Juice
Concentrate the Corporation is producing concentrate of Orange, Pear, Plum,
Strawberry besides pulps of all the above fruits. It is also producing various
squashes, jams, canned products, apple cider, cider vinegar, Apple and Plum
wine, juices in tetra paks, natural and blended juices, baby corn, mushroom in
brine and varieties of pickles.
A). Specification of concentrates


20o C ACID (W/W) 440NM 620NM

APPLE 1.6% - 2.5%

720.5 45-50%T 95%T

PEACH 3.0% - 3.5%

720.5 25%T 90%T

PEARS 1.5% - 2.28%

720.5 25%T 85%T

APRICOT 8.5% - 10%

720.5 25%T 92%T

PLUM 7.5% - 9%
720.5 1%T 55%T

No added preservative & total plate count less than 100 CFU/gm. Yeast
less than 10 CFU/mg. Mould less than 10 CFU/mg. & Free from ALAR.

B). Specification of Pulps



90.5 0.3% - 0.4%

80.5 0.4% - 0.5%

90.5 0.3% - 0.32%

80.5 2.0% - 2.3%

90.5 1.3% - 1.5%

No added preservative, no Pulp floating, colour natural, flavour

characteristic of the fruit. All concentrates and Pulps are available in aseptic and
non-aseptic bags.

C). Packing and Storage

HOT HM HDPE Plastic Barrels or aseptically packed in MS

The products should be stored at a temperature of 2-4 0 C storage
Storage as excessive heat can result in deterioration of colour and

D).Product Range
7-in-1 900 gms Apple Juice Fruit Cocktail(850 gms tin)
Mushroom in Brine 400 gms.
Baby Corn 400 gms
7-in-1 500 gms Apple Juice
Pickles Mango/Mixed Veg. 1 kg Jar.
Concentrate Pickles Mango/Mixed Veg. 1 kg.
200ml. Fruit Drink s. (Litchi, Lemon Pickle in Poly Pack 1 kg.
Lemon Pickle in Jar 1 kg.
Pineapple, Mango, Orange,
Mixed Pickle 5 kg.
Guava, Kiwi, Strawberry) Mushroom Pickle 500 gms Plastic Jar

Mixed fruit Jam Bulk 6 kg. Packing
Apple Tapple in Tetrapak -200 ml (HACCP
Squashes (Lemon, Litchi, Orange, Certified)
Ditto Mango Drink in Tetrapak - 200
strawberry, Ginger)
Jams 1050 gms ml -do-
Jams 500 gms Ditto Apple, apple Drink in Tetrapak
Peach / Pear Halves in syrup
-200ml -do-
Apple Juice 800 ml. concentrate
Ditto Litchi Drink in Tetrapak -
Apple Juice 600 ml. bottles
Apple and Plum Wine 200ml -do-
Apple Cider Ditto Kinnow/Orange in Tetrapak
Cider Vinegar
-200ml. do-
Litchi Nectar 600 ml bottles
Ditto Kiwi in Tetrapak - 200ml -do-
Mango Nectar 600 ml bottles
Ditto Strawberry in Tetrapak -200ml
Strawberry Nectar 600 ml bottles
Orange Nectar 600 ml bottles -do-
Tomato ketchup 500 gms bottles Natural Apple Juice in Tetrapak-
Kiwi Apple Juice 600 ml bottles
200ml -do-
Kiwi Jam
Apple Tea in Tetrapak-200ml -do-
Kiwi Squash
Orange drink Concentrate 1 kg. Bottle
Mango drink Concentrate 1 kg. Bottle
Apple Concentrate in Plastic Cans 2kg

E). The Varied taste of goodness

1. The Seven-fold of Himachal
The pride of Himachals produce is 7-in-1 apple juice concentrate. Ten
kilo of Delicious apples go into making one kilo of concentrate. Just mix
six parts of water to one part of concentrate for a tingling beverage that
refreshes any time of the day, in any season.Pure, fresh and free from any
additive, the concentrate can be used in one of seven ways - apple tea,
apple juice, apple milk shake, bread spread, ice-cream, cake and pastry.
Available in 500gm and and one kilo bottles.
2. Apple Tapple:
Clarified and sparkling apple juice made from juice concentrate.
Containing all the vital nutrients, preserved in a delightfully healthy taste.
Available in 200 ml and 600 ml bottles.
3. Juices and Drinks in Tetrapak

100% pure apple juice is available in the brand name Appple-Tapple in
Tetrapak Delicious Mango, Litchi, Straberry & Apple drinks are available
in "Ditto" brand name.
4. Squashes and appetisers
A range of the finest squashes in the country. Made from delicious, juicy,
handpicked fruit. Available in 700 ml bottles.
Ginger has been cultivated in Himachal for ages and Ginger Appetizer is
a specialty of HPMC. Available in 700 ml bottle.
5. Canned delights for all seasons
Peaches, Pears, halves and titbits, Fruit Cocktail, Canned Cherries,
Pineapple rings, preserved in syrup. For an anytime, anywhere snack.
Available in 850 gm cans.
White button Mushrooms preserved in brine. Once-acquired never-
forgotten table delicacy, passed on from generation to generation.
Available in 425 gm cans.
6. Assorted jams - Preserved for pleasure "More fruits than any other
Orchard-fresh fruits ripened by the sun and caressed by the Himalayan
breeze, cooked in steam with pure cane sugar. Jams that go to breakfast
tables around the world. Available in 500 gm jars and 1050 gm cans.
HPMC has a host of other products - Sauces, Ketchups, Pickles, Juices,
Nectars, Sarson-ka-Sag. Apple & Plum Wines and more
7. Corporate Gift Hamper/Family Pack
The hpmc has developed new attractively designed Gift Hampers/Family
Packs in two sizes containing 5 and 3.5 kg of Processed Food Products.
The Packs are environment-friendly and easy to carry.

The excellence of Himachal's products and the appreciation of HPMC's
efforts are reflected in various awards won by HPMC International Asia Award
for 1983 and 1984 at Singapore; First prize in all India Fruit Show, 1975 and
1981, Udyog Rattan Award in year 2000; Industries Award for operational
Excellence for the year 2002; Udyog Rattan Award, 1985 instituted by the

Institute of Economic Studies, New Delhi; New Millennium Award ; "15 th
Golden Award for quality during 2001 in Paris (FRA) and was selected for
International star award for quality in the Gold Category during 27th
International Star Award Convention, Geneva 2002.


Research methodology is a way to systematically solve the problem. It
may be understood has a science of studying how research is done scientifically.
In it we study the various steps that all generally adopted by a researcher in
studying his research problem along with the logic behind them.
The scope of research methodology is wider than that of research method.
Thus when we talk of research methodology we not only talk of research
methods but also consider the logic behind the method we use in the context of
our research study and explain why we are using a particular method.
So we should consider the following steps in research methodology:
Research design
Data collection
Sample design
A framework or blueprint for conducting the research project. It specifies
the details of the procedures necessary for obtaining the information needed to
structure and/or solve research problems. A good research design lays the
foundation for conducting the project. A good research design will ensure that
the research project is conducted effectively and efficiently. Typically, a
research design involves the following components, or tasks:
Define the information needed.
Design the research.
Specify the measurement and scaling procedures.
Construct and present a questionnaire or an appropriate form for data
Specify the sampling process and sampling size.
Develop a plan of data analysis.

The task of data collection is begins after a research problem has been
defined and research designed/ plan chalked out. Data collection is to gather the
data from the population. The data can be collected of two types:
Primary Data
Secondary Data
Primary Data
The Primary Data are those, which are collected afresh and for the first time,
and thus happened to be original in character.
Personal Interviews.
Telephonic interviews.
Secondary Data
The Secondary Data are those which have already been collected by
someone else and which have already been passed through the statistical tool.
Methods of collection of Secondary data
Old records.
In this project I am using both the method of data collection

A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure and the researcher would
adopt in selecting items of sample. Sample design may as well lay down the
number of items to be included in the sample i.e. the size of the sample. Sample
design is determined before data are collected. Before going trough sampling
design, let us learn some terms.
Population: The aggregate of all the elements, sharing some common set of
characteristics, which comprises the universe for the purpose of the research

Sample: A subgroup of the elements of the population selected for participation
in the study.
In this project sample size is 50 respondents.
Sampling Unit: The basic unit containing the elements of the population to be
In this project sampling unit is employees
Sampling Technique used in survey-
Nonprobability Sampling Techniques.
Convenience Sampling.
Nonprobability sampling techniques do not use chance selection
procedures. Rather, they rely on the personal judgment of the researcher where
as probability sampling procedure each element of the population has fixed
probabilistic chance of being selected for the sample.
In our survey, we have used nonprobabilty sampling technique because
there is no way of determining the probability of selecting any particular
element for inclusion for the sample, the estimates obtained are not statistically
projectable to the population. We have selected the sample with help of Sales
Manager and their Life Advisors.
Among nonprabability sampling techniques, the sampling technique
applied here is convenience sampling. Convenience Sampling attempts to obtain
a sample of convenient elements. The selection units is left primarily to the
inerviewer. Convenience Sampling is the least expensive and least time
consuming of all sampling techniques. The sampling units are accessible, easy
to maesure, and cooperative. In spite of these advantages, his form of sampling
has seroius limitations. Many potential sources of selection bias are present,
including respondent self-selection. Convenience Samples aer not representative
of any definable population.

A Questionnaire, whether it is called a schedule, interview form, or measuring
instrument, is a structured technique for data collection that consists of series of
question, written or verbal, that a respondent answers.

Objective Of A Questionnaire
It must translates the information needed into a set of specific questions
that the respondents can and will answer.
A questionnaire must uplift, motivate, and encourage the respondent to
become involved in the interview, to cooperate, and to complete the
A questionnaire should minimize response error.



a). Distribution of Respondents on the basis of Age groups.

Age No. of Respondents Percentage

15-20 16 30%
20-25 11 20%
25-30 11 20%
30-35 06 10%
35-40 06 10%
Total 50 100%

32% respondents are from 15-20 age groups. 22% respondents are from 20-25
age groups and 25-30 age groups. 12% of the respondents are from 30-35 and
35-40 age groups.

b). Most preferred brand.
Brand No. of Respondents Percentage
HPMC 18 36%
Glacier 06 12%
BDM 04 08%
HIMCU 10 20%
HAMDARD 12 24%
Total 50 100%

It shows that HPMC is the most preferred brand and HAMDARD is on second

c). Awareness of HPMC products
Sample Size Yes No
50 40 10

It shows that 80% of the respondents are aware of HPMC.

d). Uses of HPMC Products.
Respondents Response Percentage
38 Yes 76%
12 No 24%

It shows that 76% respondents are aware of HPMC products.

e). Rating of other products.

Brand Good Same Poor Never used Total

HIMCU 6 4 --- 10 20
BDM 2 5 6 2 15
Glacier ---- 3 2 --- 5
HAMDARD 3 3 3 1 10
Total 11 15 11 13 50

It shows that most of the consumers who have used HPMC claimed that HPMC
is same as HIMCU, BDM but poor than Glacier. Few of them asserted that
HPMC is better than Hamdard and BDM.

f). Consumer use HPMC products mainly for:

Taste 20
Price 05
Availability 10
Nutrition 15

It shows that, 20% of the consumers use HPMC product for taste and 15 percent
use it for nutrition purposes only 5% of the consumers use HPMC for its price.

g). Most preferred items of HPMC
Items Respondent
Pickle 05
Jams 10
Juices 20
Squashes 15
Total 50

It shows that 20% respondents preferred HPMC for Juices and 15% respondents
preferred for Squashes. 10% respondents preferred HPMC preferred for Jams.

h). Factors affecting buying decision.

Factors High Average Low Total

Newspaper 10 5 5 20
Fairs 7 6 2 15
Seminars --- 2 3 5
Training Programmes 3 3 4 10
Total 20 16 14 50

It clearly shows that the newspaper is the highest affecting factor in buying
decision. Fairs are the second highest factor.

i). Awareness of HPMC advertisement

Response Respondents Percentage

Yes 43 86%
No 07 14%

86% respondents are aware of HPMC advertisement only 14% respondents are
not aware of it.

j). Brand Loyalty

Respondents Percentage
Loyal 33 66%
Non-Loyal 17 34%

66% of respondents are loyal towards hpmc juices. 34% of respondents are not
loyal to their brand.



1.1 The financial results of the Corporation as per Balance Sheet were
somehow encouraging to that of previous financial year as the
Corporation registered an overall turnover of Rs. 3227.59 lacs as against
Rs. 2611.91 lacs of previous year, which has shown significant surge
in turnover by Rs. 615.65 lacs during the period under report.

1.2 The corporation suffered a loss of Rs. 394 Lacs during the financial year
2007-08. However, the corporation with better management and arduous
efforts managed to reduce the loss by Rs. 236.45 lacs during the period
under report.

1.3 Share Capital

The Authorized share capital of the corporation during the period under
report stood at Rs. 2.000 Lacs and the paid up capital of the Company
was Rs. 1780.50 Lacs as on 31.03.2017 which remained unchanged as
was in the previous financial year.

The sales / income performance of the corporation was reasonably good
in comparison to the previous year despite stiff competition by the private
sector. The corporation during the period under report registered sales /
income turnover of Rs. 3227.59 Lacs as against Rs. 2611.91 Lacs in the
previous year has shown an overall increase of Rs. 615.68 Lacs. The
corporation did reasonably well in sales of Horticulture inputs, packing
material, cold storage revenue, realization from MIS fruit sales, other
income etc. A comparative sales performance view during the last 4 years
of the corporation has been enumerated here under:

Comparative View of Sales Performance

(Rs. In lacs)
S.N. Activity 2013-14 2014-15 2015-16 2016-17
1 Processed Food Products / 1282.29 1525.80 1257.73 985.01
2 ITDC/ Institutional Sales 272.18 312.34 302.16 214.83
3 Trading of Fruits 44.33 24.21 13.05 25.17
4 Cold Storage Revenue 261.96 282.48 262.37 340.93
5 Sale of Packing Material 513.29 593.84 175.53 367.36
6 Sale of TSO/Fertilizer/ 286.81 380.02 197.19 309.88
Insecticides/ Pesticides
7 Sale of Fruits under MIS 429.10 158.08 26.31 175.27
8 Subsidy/ Other/ Sales/ 1109.47 586.19 377.57 809.14
9 Total Sales/ Turnover 4299.43 3862.96 2611.91 3227.59

The financial year 2007-08 was comparatively good year to the
corporation so far as sales turnover was concerned. The Corporation have
managed an overall sales turnover of Rs.2187.74 lacs besides other
income of Rs. 1039.84 lacs as compared to previous year of Rs. 2105.65

lacs and Rs. 50.63 lacs. Major sales achievement made and reasons for
decline in different segments are enumerated hereunder.

3.1 Sales of Processed Foods:-

The Corporation registered sale turnover of Rs. 985.01 lacs as against Rs.
1257.73 lacs of previous year in processed products, which shows
marginal decrease of Rs. 272.72 lacs during the period under report. The
decrease in processed products sales attributed mainly due to distress
sales of Apple Juice Concentrate, Tetra Pak juices and other products as
compared to the previous financial year.
3.2 Sales of Apple Juice Concentrate / Juices
During the period under report, the corporation sold 288.73 MTs of Apple
Juice concentrate valuing Rs. 300.57 lacs as against 350.20 MTs valuing
Rs. 364.29 lacs of previous year which reflects decline in AJC sales. It
adversely affected the overall sales turnover of the corporation too.
Similarly the corporation sold juices and other products to the tune of Rs.
260.84 lacs as against Rs. 360.99 lacs of previous year showing a
considerable decline in sales by Rs. 100.15 lacs.
3.3 Sales of Tetra Pak Juices
There was sharp decline in sales of tetra pak juices as the Corporation
could manage to sell about 2.08 lacs trays of different blends valuing Rs.
384.95 lacs as against 3.37 lacs valuing Rs. 532.42 lacs of previous year
thus resulting in overall decline in sales turnover of processed products
during the period under report.

3.4 Packing Material Business:-

If was relatively a good year as far as the sales of packing material were
concerned. The corporation made impressive strides by improving the
sales turnover of packing material and managed to sell about 9.31 lacs
corrugated cartons valuing to Rs. 256.91 lacs as against previous year of
5.51 lacs cartons valuing Rs. 150.22 lacs. Overall the corporation
registered sales turnover of Rs. 367.36 lacs as against Rs. 175.53 lacs in

packing material segment which shows whopping increase in sales to the
tune of Rs. 191.83 lacs during the period under report.
3.5 Bulk supplies to the reputed Institutions:
With quality management and cordial relationship the corporation has
built up and maintained its reputation in the domestic market for supply
of its products in bulk to the reputed institutions inter alia Indian Airlines,
Allance Airlines, Indian Railways, Mohan Meakins, Britannia, Parleys,
Army etc. The corporation could not expand its bulk buyer base during
the period under report.
3.6 Markit Intervantion Scheme 2007-08:
On behalf of the Government of Himachal Pradesh the Corporation
procured about 159.17 MT of B grade Apple valuing 756.08 lacs @ Rs.
4.75 per Kg and about 42.15 MTs of Orange / Kinnow and Galgal under
Market Intervention Scheme during the period under report.
3.7 Trading of Fruits:
The corporation could nit make strides in trading of fruit business due to
financial constraints as there was paucity of working capital to carry out
this business. The corporation only managed to achieve a turnover of
about Rs. 25.17 lacs. On the other side there was a marginal decline in
the supplies of fruit / vegetables to the ITDC hotels/ Institutes, which
stood at about Rs. 214.83 lacs as compared to Rs. 302.16 lacs of previous
year during the period under report.
3.8 Cold Storage Business:
The Cold storage business has been a major source of revenue earning
activity of the corporation. The corporation did exceedingly well to
increase cold storage revenue. It generated revenue of Rs. 340.93 lacs as
against of Rs. 262.37 lacs of previous year which shows an impressive
increase of Rs. 78.56 lacs during the period under report.
3.9 Sales of Horticulture Inputs
In view of a good apple crop and better policy management, the
corporation increased its business of horticulture inputs by registering
sales turnover of Rs. 309.88 lacs as against Rs. 197.19 lacs of previous

year which shows handsome increase of Rs. 112.69 lacs during the period
under report.
4. Major Processing Initiatives
It was relatively a good year as far as processing of fruits by all the three
plants was concerned. The achievements made in processing segment in
relation to the previous year and enumerated hereunder:
4.1 The Fruit Processing Plants, Parwanu, Jarol (Sundernagar) and Jabli
Processed products including AJC, Tetra Pak Trays and other products
worth of about Rs. 1377.04 lacs as against Rs. 984.32 lacs of previous
year, which shows an sizable increase in production by Rs. 392.72 lacs
during the period under report.
4.2 Due to good apple crop and better policy management the corporation,
processed about 8545 Mts of apple procured under MIS and extracted
about 750.50 Mts AJC valuing Rs. 645.63 lacs as against 389.50 MTs of
previous year. There was whopping increase of 361 Mts. In AJC
production during the period under report.

5. Disposal of HPMC Land at Kundil (Sonepat Haryana)

As per the decision of the State Government and the Board of Directors,
the Corporation disposed off its land situated at Kundli to the General
Administration Department (GAD) to the State Government for a
consideration of Rs. 9.11 Crores against which the Government has
already released a sum of Rs. 473.08 lacs and have adjusted the balance
Rs. 437.92 lacs towards its old State Govt. loans liability during the
period under report.
6. Participating in International / National Trade fairs:-
A publicity plays a vital role to promote the sales of any products in the
competitive world. The corporation could not afford to launch an
aggressive publicity campaign in a professional manner due to financial
constraints. However, the corporation with its limited sources participated
in some of the domestic and international trade fairs / mission such as
India International Trade Fair (IITF) New Delhi, International Dushehra

Festival Kullu, International Lavi Fair, Rampur beside some state level
trade fairs. Besides this the corporation participated in Agriculture Food
processing Mission to China to study the food processing industry in
7. Setting up of Modern packing / Grading house at Reckong PEO
The corporation has taken an intiative to setup a modern packing /
grading house at Reckong-Peo, Distt. Kinnaur on a piece of land given to
Hpmc by the Department of Industries with the twin objective to procure
apple business from Kinnaur on the hand and provide modern packing
facilities to the growers of the district on the other. The H.P. State co-
operative Bank Shimla has sanctioned a soft loan of Rs. 74 lacs for the
construction of the same.

8. Maximum brand awareness but not often preferred in other states. The
data analysis shows that out of 50 respondents 43 persons were aware of
the HPMC trademark. But instead if these HPMC products are not
preferred by the people of other states. They prefer Glacier, Hamdard
brands etc.
9 Consumer preference with purchasing potables and eatables. The Study
revealed that consumers preferred taste and freshness for the pickles and
jams of HPMC products. They do not purchase it for the nutrition so
much. About 33 respondents are loyal towards their brands of 50
10 Demand of the product of HPMC. Its juices are preferred more than other
products of HPMC like jams and squashes.
11 HPMC products have tough competition in the market with other brands
like Glacier, Hamdard are among the competitors of HPMC in juices and
12. Some of the consumer who were asked about the promotional activities
complained that the seminar and training programmes of HPMC

programs are not so much and even the newspaper advertisement are not
satisfactory. The company must spend more on the promotional activities
of the HPMC products.
13. Some of the respondents who have used HPMC products complained
about the quality. They said that the quality is not as good as compared to
Hamdard and Glacier products. The unit must target on the quality also.
14. Some respondents suggested that the company must expand the plants
and thus increase the production capacity of the plants in order to
compete with the other competitors and also to lower the cost per unit of
the products.
15. Open more sales counter within Himachal and even in other adjoining
Emphasis on promotional activities
Some of the consumer who were asked about the promotional activities
complained that the seminars and training programmes of hpmc products
are not so much and even the newspaper advertisement are not
satisfactory. The company must spend more on the promotional activities
of the hpmc products.

Emphasis on product quality

Some of the respondents who have used hpmc products complained about
the quality. They said that the quality is not as good as compared to
Hamdard and Glacier products. The unit must target on the quality also.

More investment on plant expansion

Some respondents suggested that the company must expand the plants
and thus increase the production capacity of the plants in order to
complete with other competitors and also to lower the cost per unit of the

Opening more sale counters

In Himahcal the processing unit must open more sales counter within
Himachal and even in other adjoining states.