REPORT ON

ANALYSIS OF SALES AND PRODUCTION

OF NEBICO (PVT.) LTD.

Prepared By:
Roji Karanjit
T.U Reg No. - 7-2-282-130-2012
Roll No. 39

Submitted to:
St. Xavier’s College
Maitighar, Kathmandu
In partial fulfillment of the requirements for the degree of Bachelors of Business
Studies (BBS)
2015

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CHAPTER I - INTRODUCTION

BACKGROUND

Among most of the countries Nepal is the least developed country from economic
standpoint. Nepal is virtually a developing country, in which agriculture is still the
mainstay of the entire economic system of the country. Nepal is an agricultural country
where 81% of total population is engaged in agriculture for their livelihood. However, the
productivity of this sector falls to be very low. Agriculture land is limited but population
is increasing day by day. The increasing population of country has constantly put the
pressure on land and as such need is being felt to absorb the increasing population to
some other sector. The surplus labor from agricultural sector should be employed in some
other economic sectors. Industry is the most important sector to absorb the surplus labor
here in. Thus more and more industries should be established. The industry does not only
provide the employment to excess labor from agriculture but also creates the market
agriculture product as raw materials.

Industrialization plays a vital role in boosting the economy of the country, not forgetting
the increase in per capita income of the people. Development of industries is vital for
achieving rapid economic growth as it leads rapid development, provides employment
opportunities, uplifts living standard, makes the country self-dependent, local resources
and raw materials are utilized, encourages agricultural development, promotes skill
development and diversification of investment, promotes economic activities, saving,
investment and income, promote regional development, promotes urbanization

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INTRODUCTION AND SIGNIFICANCE OF STUDY

Since Nebico Pvt Ltd. is the first biscuit company of Nepal it is very essential to know
the present market situation of its product. Hence the study aims to define the market
position of its product as well as its production and consumption. This study will be more
beneficial for the company in order to meet future demands and to prepare production
schedule. Ultimately it will minimize the inventory cost which will also help to manager
cash flows.

OBJECTIVE OF STUDY

 To forecast the production and sales

 To analysis the sales and production trend of products
 To find correlation between production and sales
 To compare actual sales and target sales of each product
 To find consumer perception regarding Nebico biscuits.

STATEMENT OF PROBLEM
The study of Nebico Biscuits faces the following problems:
 Nebico manufactures both biscuits and confectionery. Its major product is
biscuits. Thus this study is concentrated entirely on production and sales of
biscuits only.
 As the data of sales and production in Rupees is not available the analysis is done
only in quantitative basis.
 As time is very short, it concentrates only in sales and production of Nebico
biscuits only. It was not possible to compare it sales with that of its competitiors.

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CHAPTER II – LITERATURE REVIEW

INTRODUCTION OF NEBICO PRIVATE LTD

Nebico Private Limited is the pioneer biscuit industry of Nepal. It was initially under the
name of National Biscuit and Confectionary Private Limited, Kathmandu, Nepal. It was
established in 1964 with the objective of manufacturing quality biscuits and
confectionary in Nepal. The company is situated in Balaju Industrial District, Balaju,
Kathmandu, occupying 73000 square feet of land. It came into operation as the pioneer
biscuit and confectionary manufacturer of Nepal in 1967, with an installed capacity of
6MT per day.
In 1968, the name of the Company was changed to the present one, i.e. Nebico Pvt. Ltd.
along with the capacity expansion to 15 MT per day. Britannia Industries Limited, India
was in the areas of technical collaboration as well as production know how with NEBICO
that time. Currently, the company is operating in two shifts. Annual production capacity
of the company at present is around 2,400 MT.
Initially the Company has been certified for ISO 9001: 2000 and has voluntarily adopted
ISO 14001:1996. Currently, the Company has adopted ISO 9001: 2008. Besides, Nebico
Private Limited has subscribed to the Global Compact Company.

Nebico has been constantly serving the need of its valued consumers for decades. It has
been manufacturing various brands of hard- dough and soft -dough biscuits, i.e., Glucose,
Thin arrowroot, Coconut Crunches, Khaja, One to One, Digestive, Nice, and other
various cream biscuits. In addition, the achievement of national and international
certifications has created the highest confidence& image in its products.
Nebico is going to expand its product lines in near future. Plans are on the way to add
crackers, cookies and cream varieties.

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HISTORICAL REVIEW

The biscuit is made from the dough of flour and far mixed with some other ingredients
and are backed. The other ingredients may be eggs, sugar, chocolate spices etc. as per the
flavor and types of biscuit. The biscuit were originally developed to meet the longer life
of bakery products.
The biscuit factory was established in England in 1815 A.D. The biscuits were
manufactured at that time to meet the requirement of European travelers. However it
substituted the food for patients or sick people. At present biscuits are popularly used as
snakes breakfast, tiffin etc.

OBJECTIVES OF NEBICO PRIVATE LTD.

The company is established with an objective of manufacturing quality biscuit and

confectionery in the country. Besides, it's another major objective is to minimize the
import of biscuits in the country. Its strategy is to provide quality product to satisfy
customers so that it can get support from all consumers. A part from production of quality
biscuits its overall objectives it to facilitate the consumer to buy Nebico Biscuits at any
retail shop near their local market at reasonable price by creating effective distribution
network.

CHAPTER III - METHODOLOGY AND DATA PRESENTATION

RESEARCH DESIGN

Date is a very reliable and effective source for a field report. Data is the foundation of all
fieldwork project. Data may be obtained from different sources. Data also depends on the
objectives and necessity of field report. Since the basic objective of the study is analysis
of sales and production of Nebico Pvt Ltd appropriate methodology has been followed.

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The first step is to collect necessary information and data concerning the study of NPL.
The task will be fulfilled by the collection of secondary data various published and
unpublished information, that will be used the analysis of sales and production. In this
study analytical research design will be used for clearing the situation of the basis of
presented data and facts. Further, a questionnaire was developed in order to know the
consumers perception regarding Nebico biscuits.

The data is carefully studied and analyzed systematically under the specific major
headings so as to meet the objectives of the study. One the other hand, the accumulated
data is explored and tabulated systematically.

 SOURCES OF DATA

 Secondary Data:

It is the data, which has already been collected for the other purpose than the one being
pursued. The secondary data that has been presented here was taken from the official
record of organization. This study is mainly based on secondary data.

 Primary Data:

Primary data are the original data, which are gathered for research project in hand. These
data are collected for meeting the specific objectives of the study. It can be collected
through observation, Interviews and questionnaire about the views regarding its products.

 Observation:

It is the first primary data in the department. Observation was made to know the response
of customers. Various market places were visited with the assistant of sales officer.

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  Interviewing :

Interviewing was especially conducted with the concerned person of sales and marketing
department to get more information, which was not published. Both structured and
unstructured interview techniques were used. Interviews conducted in the field were face
to face.

 DATA PROCESSING TECHNIQUES:

After collecting all the required data from various sources, the data and information are
properly synthesized, arranged, tabulated to accordance with the requirement of the
study.

 ANALYTICAL TOOLS USED:

The analytical tools in the process of study are descriptive statistics (percentage),
correlation, time series, pictorial presentation (bar, charts, pie charts)

SUMMARY

Nebico Pvt Ltd is the pioneer biscuit company of Nepal located in Balaju Industrial
District. It has technical collaboration with Britannia biscuit company of India. It uses
semi automatic machine for production of biscuit. Nebico Pvt Ltd at present is operating
in oligopoly market condition. Sales and production are in decreasing trend. It has limited
number of sales depot. Its promotional activities are weak. It has not captured the whole
market.

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REFERENCE

BOOKS:
1. Agrawal Dr. Govinda Ram ( 2000) -"Marketing Management in Nepal", M. K.
Publisher and distributors, Kathmandu.
2. Bajaracharya B.C. ( 2000), "Business Statistics and Management", M.K. Publication,
Third Edition, Kathmandu.
3. Koirala K.D. ( 1999), "Fundamentals of Marketing Decision",- M.K. Publisher and
distributors, Kathmandu.

WEBSITE:
http://www.nebico.com