TCI Packaging Division: Group 7

TCI Packaging Division
GROUP 7
JOSEPH ROBERT
SHAMIL SATHAR E
NIDHIN V C
SHYAM SUNDAR
AAKANSHA ARORA
TCI Company Profile
• Established in 1910
• Cigarette Manufacturing and Marketing Organization
• 1.5 Billion Dollar Enterprise (Rs 3750 Crore approx)
• Seven Main Businesses
• Highest earner of foreign exchange in the Indian
private sector(Rs 834 crore during 1992-93)
Businesses of TCI
• Tobacco and Cigarettes

• Packaging and Printing
• Hotels
• Seeds and Edible oils
• Paper and Board
• Financial Services
• International trading
Packaging and Printing Division
• India’s Largest Manufacturer of value added

folded cartons
• Packaging of TCI’s Cigarettes, other brands
of Liquor, Foods, Detergents, Personal
Products, and Matches.
• New Computer-controlled Machinery
Product Development Team
Credits of PPD
• Won three World Star Awards in a single year

• Technical collaboration arrangement with BOX-
Liquid Corporation, USA
• Developed “Wunder-Pac” Bag-In-Box[BIB]
• BIB is convenient to use, more hygienic, Tamper
proof, and Cost effective.
Production of Cashew Kernels
• Cashew nuts are conditioned by sprinkling water and are

kept for 24-72 hours after which they are sun dried or
roasted.
• The roasting can be done either by the drum roasting
method or the oil roasting method
• Shelled manually with wooden hammers to separate kernels
from the nuts
• Kernels are then dried and to prevent insect attack are put
through process “ borming”
• Kernels are graded on number of counts per pound
• To reduce the brittleness they are humidified
Cashew Processing
Cashew Exports from India
•During 60’s US and USSR were major importers

• There are 2 major international markets
• New York Market
• London Market
• For nine months ending September 1992 the exports
stood at 35.2 thousand tonnes
• The price is affected by total production of
cashew nuts in the producing country.
Major Competitors
Brazil
Mozambique
Tanzania
Kenya
Advantage Brazil
• Distance Factor
• Low Price
• Better Delivery
• Use of Kovak Packaging
• Successful implementation till now
Problems in Bulk Packaging of Cashew Exports
• Importing Countries pressuring to adopt

Alternative Packaging methods
• Problems stated are
• Lead Solder contamination
• Disposability
• Recyclability
• Safety Aspects
Features of Bulk packaging
• Council for Cashew Exports and Promotion

• Features put forward by the committee
• Enough Strength to withstand the pressure of Handling
and Transport
• Containers Should be Leak-Proof
• Shelf Life of the Cashews
• Splits and Broken Percentage
• Resistance to pest attacks in godowns
• Price of Bulk packs
• Investments
Response of Cashew Industry
• Most feel they have to change over to new

types of packaging
• Importers had formally expressed their
concern through CCPE
• Exporters wanted more time
• An Informal Association of tin container
manufactures responded aggressively
Types Of Packaging
Vita Pack System

Kovak Packaging
CAM company’s Packaging
TCI’s Bag In Box(BOB) flexi packaging
Vitapack System
• Net weight of 11.34 kgs in tins of 1 kg

• Two such packed tins are kept in a cardboard carton
• Steel strapped for exports
• Shipping specifications – 490*240*350 mm3
• Tins are kept in the filers and filled by jerk
movements
• Vacuumized up to 26 inches
• Sealed with a tin lid and lead soldering
TCI’s Bag-in-Box Flexi packs
• BIB technology
• A flexi pack made of Aluminium foils and HDPE
• A spout to protrude outside the box
• A Flexi pack was developed for Bulk Packaging
• Demonstrated to CCPE and to exporters
• Tested a new pack by sending a full container load of
cashews to Japan through TCI’s Agri-Business division
• Broken and splits component is 7 percent and new
pack is susceptible to rats
Potential Markets
USA
East Europe
West Europe
African
West Asia
Cultural and Social factors in Potential Markets
Power Distance- Very low in United States ,High in

Asian countries
Individualism- collectivism- USA is very high on
individualism.
HNO :- USA and Japan are high HNO societies. This
results in pragmatic rules which most people obey
and respect.
Economic statistics
Political environment
Filter Social structure
1 Geographic features
Growth trends for similar products

Filter Cultural acceptance of such products
2 Availability of market data
Market Size
Stage of development
Taxes & Duties
Existing and potential competition

Ease of entry
Filter Reliability of information
3 Sales projections
Cost of entry
Probable product acceptance
Profit potential
“Feel”
Filter
4 Corporate factors influencing implementation
Target Markets
USA
 Eastern Europe
Japan
SWOT Analysis BIB Flexi Packs
Strength
 Environment Friendly
 Moisture resistant & Tamper Proof
 Convenient to use
 Successfully Tested
 Cost effective
Weakness
 High percentage of broken and split component
 Less resistant to rat attacks
Opportunities
 Currency Devaluation
 Expansion of market
Threats
 High competition
 Arguments from tin container manufacturers
Recommendations
Expand business to countries like US ,Japan and

Eastern Europe(Triad)
Home Country Pressure Groups- Comply the demands
of pressure groups for environmental friendly
packaging solutions
Develop cost effective and user friendly packaging
solution
Reduce breakage rate
Operate in neighboring countries of consumers after
studying the business environment of those countries.
Is the Cashew Packaging Market
Attractive Enough?
• Based on the existing scenario its not

attractive due to the restrictions imposed by
the importers
• Scope for the new players to come up with
new packaging
• Cost is another factor
• With increasing Cashew kernel exports
Cashew Packaging market is growing too.
Stakes of Different Stakeholders
in cashew packaging?
• The Tin foil manufacturers

• Cashew kernel exporters
• Packaging companies
• Logistics provider
• Channel agents
• Retail Chain
What should be the marketing
strategy for our new pack?
Product
• BIB is a made from Aluminium and HDPE

• Features of BIB - Convenient to use,
Hygienic, Tamper proof
• Expected changes to be made in the
vitapack system to accommodate this new
pack were also minimal.
Advantage of HDPE
• Virtually maintenance • High abrasion

free resistance
• Impervious to insects • Splinter free
• Will not crack or split • Does not contain
• Does not contaminate harmful chemicals
ground or soil • Attractive
appearance
Price
• Lower cost than tin containers

• Cost effective
• HDPE is Durable and ReCycled Plastic
• Minimal changes to be made from Vitapack
system
Promotion
• We have to get EIA( Export inspection

Agency) certification
• We will show the Association of Cashew
Exporters and CCPE( Council for Cashew
Exports and Promotion) the Cost
advantages of this new pack.
• Explain how it is addressing the Importers
Place
• Select the areas that are exporting cashew

kernels
THANK YOU

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TCI Packaging Division

• Tobacco and Cigarettes

• India’s Largest Manufacturer of value added

• Won three World Star Awards in a single year

• Cashew nuts are conditioned by sprinkling water and are

•During 60’s US and USSR were major importers

• Importing Countries pressuring to adopt

• Council for Cashew Exports and Promotion

• Most feel they have to change over to new

Vita Pack System

• Net weight of 11.34 kgs in tins of 1 kg

Power Distance- Very low in United States ,High in

Growth trends for similar products

Existing and potential competition

Expand business to countries like US ,Japan and

• Based on the existing scenario its not

• The Tin foil manufacturers

• BIB is a made from Aluminium and HDPE

• Virtually maintenance • High abrasion

• Lower cost than tin containers

• We have to get EIA( Export inspection

• Select the areas that are exporting cashew

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