Organization Study at Coffee Day

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INTRODUCTION
When we think about refreshment, the first thing that comes to our mind is
coffee or tea. Most people prefer coffee and most prefer tea and these two drinks
have become a part of a human being’s life.
Here we (I) have concentrated on coffee which is considered as a traditional
drinks especially in south India. People here start their everyday life with a cup of
coffee. Not only in south India but in all parts of the world people are so dependent
and addicted to coffee that it acts as a daily schedule to every body every where.
But this coffee is not grown in all parts of the world but is grown in very few
places with right kind or weather, atmosphere and most important of all, the soil of
that region. It is usually grown in hill stations with adequate amount of rainfall and
such places which are high above sea level. Therefore in India, Karnataka is such a
place, especially South Karnataka which produces the highest amount of coffee in
whole India. Most parts of Karnataka such as Chikmagalur district and many parts
in Hassan District, and also Coorg.
So people here feel proud to be citizen of such place where coffee takes its
birth. So that being the main reason, I have concentrated on a organization which
has its roots spread very vast in coffee industry and is a major player in worlds
import/export of coffee and deals in coffee beans curing activities present in
Hassan.
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“AMALGAMATED BEEN COFFEE TRADING COMPANY LIMITED
(ABCTCL)”
Having its head office in Hassan and spreads over all parts of India, it is the
one of the biggest organization in the coffee industry.
ABCTCL was stated in the 1991 year and owned by Mr. B.G Siddarth.
Registered office of ABCTCL is in Chikmagalur and has its own coffee growing
estate which spreads in a area more than 5000 acres in Chikmagalur district.
Amalgamated Bean Coffee Trading Company Limited is perhaps one of the
two fully integrated coffee companies of Asia, involved in all sectors of Coffee
from plantations to retailing to exports.
Amalgamated Bean Coffee Trading Company, better known as "ABC", is
one of the largest exporters of green coffee from India since 1999. ABC's business
mission has its roots in coffee knowledge. This culminates into an incessant effort
to adapt to dynamics of the coffee market resulting onto a leadership role. ABC
has invested well into a Research and development on coffee quality that supports
our domestic promotion of various blends of coffee and augments our export
activities.
However the corporate office of ABCTCL is situated in Bangalore which
manages all the activities of ABCTCL all over India.

COMPANY PROFILE
PROMOTER
Mr. B.G Siddartha is the owner and also the promoter and is the chairmen
and managing director of ABCTCL. He with is own capital started ABCTCL in
1991 and is successfully managing it today with a wide network of people
management.
It is a private ltd. Company and dose not issue shares to the general public
for raising capita.
Private placement of shares is to be done and 20% of the shares of
ABCTCL was issued to a MNC by Mr. Siddartha.
PROCUREMENT AND CURING WORKS
The curing activities of coffee takes place in Chikmangalur and Hassan,
each with a storage capacity of 70,000 tons
All the domestic dealings of India are managed by offices of ABCTCL
which are located in places like Delhi, Chennai, Kolkatta and also in for off places
such as Shimla and Assam.

CHART SHOWING COMPANY STRUCTURE OF ABCTCL

COMPANY STRUCTURE
As per the chart the works fields of ABCTCL are divided into seven major
divisions they are.
 Café coffee day
 Exports
 Beverages
 Fresh & grounds
 Express
 Packaging
 Plantations
CAFÉ COFFEE DAY
One of the most common names here today is one of the greatest
achievements of ABCTCL.
As known to everyone café coffee day are the café shops managed by
ABCTCL and present in large number in all parts of India today. The brains
behind success of café coffee day is one person: Mr. Naresh Malhothra, the
president of café coffee day division. Its because of is dream to make people all
over the world get wide range of coffee product at affordable prices, we have more
than 500 café coffee day outlets in India today.
They are also trying to cover the whole world market by establishing more
and more retail coffee day outlets all over the world.
The first step in world café market was taken in the recent years by
establishing the first café coffee day outlet in Vienna, Austria.
The whole café coffee day management is done by corporate office of
ABCTCL in Bangalore through a wide network followed by

 State Mangers
 General Mangers
 City Mangers
 Café coffee day outlet Mangers
All these has proven café coffee day to be the most precious jewel of
ABCTCL.

ABCTCL EXPORTS
Since it is a export oriented unit, it exports its coffee beans to many parts of
the word. ABCTCL exports has been one of the largest coffee export shipping
close to half million bags in volume.
The clients of ABCTCL include worlds biggest and most discerning
roasters MNCs, trading companies and retail chains. But the major market of
export of ABCTCL is Europe.
About 98% of the whole export of ABCTCL is done to most of the
European countries and in these European countries some of the biggest customers
of ABCTCL are situated.
The rest of the 2% of its exports is carried with USA, Japan and Middle
east. These countries import coffee beans from ABCTCL and further process these
beans and produce many varieties of coffee for their market.
Even under domestic dealings some of the biggest MNCs like NESTLE are
the customers of ABCTCL who create many coffee product and is present in
Indian market as well as abroad.
Some of the customer to whom ABCTCL exports its coffee are:
 Sadnalji trading company Ltd.- SPAIN
 Louis dreyfus trading Ltd.- UK
 Alsroor Jabbar Ltd. – Kuwait
 Bernharad Rothfos GMBH & company – Germany
 Olan international Ltd. – SINGAPORE
The above are some of the customers of ABCTCL abroad and have many
other customers all over the world.

As far as imports are concerned, ABCTCL imports special variety of
Arabica coffee from KENYA which is considered as one of the best in the coffee
market. These coffee beans are longer in appearance and has a rich taste. Imports
of ABCTCL are very few and above mentioned type is imported just to provide
variety to consumers in India.

BEVERAGES
Beverages in the general sense mean any hot refreshment drinks. So under
beverages department of ABCTCL, it deals with coffee machines which prepare
these beverages such as black coffee, regular filter coffee, instant coffee etc..
These machines are automated and require some raw materials to be fed in
it before the preparation of coffee. After that just by the press of a button people
can get different types of coffee ready to drink.
So these department is concerned with selling of such coffee machines
which are used in most of the offices and other work places with ready hot coffees
for people who work their as and when they require it.
These coffee machines create a huge market for ABCTCL which help in
spreading coffee products of ABCTCL all over India. So separate department for
selling and maintenance of these coffee machines is managed again with same
chain of president and manager who concentrate only in this division.

FRESH & GROUND
These are retail outlets of coffee day situated in all parts of India mostly in
major cities all over India. These outlets provide customer with wide variety of
coffee beans and provides both instant coffee and filter coffee options to the
customer and customers are given choice to select their favorite variety of coffee
beans which are later blended and coffee powder is provided to customer as per
their required quantity and according to their requirement.
Usually all the fresh and ground outlets are mange by the corporate office
of ABCTCL, Bangalore.

COFFEE DAY TAKE AWAY
The Coffee Day Take Away initiative is a virtual revolution in dispensing
coffee. For the first time, it makes freshness a part of the vending machine
proposition. Only the freshest ingredients are used and strict control is maintained
to ensure that every cup delivers the satisfaction of a freshly brewed cup of coffee.
Being a part of beverages and fresh and ground division,Coffee Day take
away is a brand that has no substitute. Renowned for its aroma & flavour, Coffee
Day has grown to be India's largest selling brand of fresh filter coffee powder.
Amalgamated Bean Coffee Trading Company Ltd., the name behind Coffee Day
Take Away, is one of the largest producers & exporters of coffee in the country.
With over 5000 acres of coffee plantations and state-of-the-art curing capacity of
70,000 tons, it has the distinction of exporting more than 13% of India's coffee.
The company has been responsible for transforming coffee retailing. With over
300 Coffee Day Fresh 'n' Ground outlets, it caters to over 1,20,000 customers
every week. Taking the filter coffee experience forward. Expanding its beverage
portfolio, the company has also launched superior Assam teas under the Tea Day
brand.
Through its Coffee Day Take Away vending machine initiative, the
company will deliver what the consumer has been missing till now - authentic
filter coffee and fine tea made available conveniently

PACKAGING
This is one of the important division or department of ABCTCL. This
packaging department includes the process of converting coffee beans into readily
consumable coffee products and then packing them in to attractive packages with
different quantities.
This packaging takes place in a huge plant in Hassan where the head office
of ABCTCL is situated. These packed products of both instant and filter coffee are
then supplied to its retailer and its own fresh and ground outlets.
But the marketing of these packed products is done by marketing manager
from corporate office of ABCTCL, Bangalore. The head office in Hassan produces
only that much quantity which is ordered by the Bangalore office as per the
requirement.
However the packed products are only used and marketed in domestic
market and exporting of these packed products doesn’t take place.
EXPRESS
Coffee Day Xpress is a unique concept of convenient cafe, an idea that
feeds a world that's continuously in transit.

The Coffee Day Xpress kiosk is a sanctuary where people can pause for
refreshment before getting on with life. Retail custom-made for the 21st century.
Catering to a world that needs coffee on the go! At high-traffic locations. With hot
and cold beverages and a variety of ready-to-eat snacks.
Amalgamated Bean Coffee Trading Company Limited – or ABC, as it is
better known – is a fully integrated coffee company with a rich heritage that
stretches over a century. Its endeavors find expression from coffee plantations to
innovative retail concepts and even exports.
To ensure that it remains a dominant force in the coffee sector, ABC has
invested extensively in Research & Development to ensure quality coffee blends
This division of ABCTCL managers the small coffee or café booths which
we see these days in all the public places like shopping malls, bus station, railway
station and other places where the general public roam in large numbers.
The advantage of these express division is people can buy different types of
hot and cold coffee in these public places when they hang out their. Apart from
that this division manages the food products and other coffee product which are
available in all the café coffee outlets these days.
Usually the other food products which are available in café coffee day
outlets are outsourced by these divisions to various other retailers who prepare
these food products. The rest of the food products are prepared in café coffee day
outlets by the help of well and experienced people.

PLANTATION
This is the management of coffee plantations of ABCTCL.
ABC has its seeds sown in the heart of the coffee cradle of India,
Chikmagalur. The region is a world wrapped in primeval innocence, where
panthers, tigers and elephants roam.
Their passion for coffee stems from the august heritage of coffee estates
inherited by the promoter's family. What started out with a small group of family-
owned estates, gradually grew as more and more estates were included to finally
form Amalgamated Bean Coffee Trading Co. Ltd.

The plantations nestled in Chikmagalur and Mudigere region of the Western
Ghats, are spread over 5000 acres of well-maintained estates upto 4500ft above sea
level. This makes us the second largest plantation company in the country.
Their estates are the first and at present the only ones in India to be certified
by the "Utz Kapeh Foundation" for efficient farm management and full
traceability.
These estates provide a natural habitat for several genus of flora and fauna.
They are hosts to innumerable herbs, shrubs and trees like jackfruit, areca
nut, orange, pepper, cardamom, etc.
The coffees at estate are grown under the dark shades of various forest trees
like silver oak, Indian Rose wood and various others.
The estates share boundaries with some forest reserves and wild life
sanctuaries and hence is also home to a variety of species of wildlife from birds
and hares to deer,elephants, and even tigers!
Other than the above procurement and storage of coffee beans is done in
Hassan and Chikmagalur with huge procurement machine and large where houses
which can store up to 70,000 bags of coffee.

PRODUCT PROFILE
Obviously the product is coffee beans and coffee can be mainly divided into
2 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 creama 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 ABCTCL
by two ways
Parchment
Cherry

PARCHMENT
It means bringing the cleaned beans or already separated and dried coffee
beans in to ABCTCL.
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 ABCTCL 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 ABCTCL in a ripe cherry form
and even removing the bean from the cherry is done by ABCTCL, head office,
Hassan & Chikmagalur after bringing to ABCTCL. 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 U.K (London)
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 & sub divisions of coffee beans.
Types
Arabica Arabica Robusta Robusta
parchment Cherry Parchment Cherry
S AAA AA AA AA
U AA A A A
B A AB AB AB
D B C C C
I C PB PB PB
V PB BB BB BB
I BB Bits Bits Bits
S Bits
I EB
O
N
S
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.
Like wise 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
 Monsooned Robusta Triage

COMPETITORS
As every other industry, even the coffee industry has lots of competitors.
But the competitors of ABCTCL 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
ABCTCL.
Some of the competitors in this field for ABCTCL are
 Allan coffee curing works
 Jayanthi group
 General commodities ltd.
 Nestle company ltd.
 ITC ltd.
 Ned commodities ltd.
In domestic market there are lots of retailers who compete with ABCTCL
in the domestic market. Even though only 10% of ABCTCL’s products are
marketed in domestic market, there are lots of competitors even to compete for this
10% of coffee products of ABCTCL.
Some of these competitors are
 Narsus coffee
 Hindustan lever ltd. (HLL)
 TATA coffee

UTZ KAPLIH CERTIFIED.
ABCTCL is a UTZ kapeh certified organization. UTZ kapeh certification is
a worldwide and market driven initiative for responsible coffee production &
sourcing. It aims at bringing about complete transparency in the supply chain of
coffee from farm to the cup.
This shows the success of ABCTCL in its functioning
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 8
th
place in its
contribution of coffee and its plantation in the whole world and 1
st
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, Chinkmagalur 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, ABCTCL 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
Chikmagur 41,550 31,000 72,550
Coorg 21,700 85,800 107,500
Hassan 17,000 8,975 25,975
Sub – Total 80,250 125,775 206,025

ORGANIZATION STRUCTURE
As the company is very vast in its size only a part of company is covered,
that is the head office of ABCTCL in Hassan.
ABCTCL HEAD OFFICE - HASSAN
As mentioned earlier, the head office of ABCTCL situated in Belur road in
Hassan has its main work in procurement of coffee beans and is a export oriented
unit which is controlled by the corporate office of Bangalore to certain extinct.
90% of the coffee dealings of ABCTCL is its exports and rest 10% of it is
in domestic dealings. So the head office at HSN plays very important role in
success of ABCTCL.
Even many domestic dealings of ABCTCL is carried on by head office in
Hassan such as supply to all its fresh and ground outlets in and around Hassan
district. But this is done only by orders from corporate office Bangalore.
So here the organization hierarchy of ABCTCL Hassan is shown in the next
chart from peoples authority shown from top to bottom.

CHART SHOWING ORGANISATION HIERARCHY OF
ABCTCL HEAD OFFICE OF HASSAN

As shown in the chart the organization hierarchy is as follows:
At the top of the company there is Mr. B.G Siddarth who is the sole
chairmen and managing director of the company.
Mr. Siddarth manages the whole ABCTCL through a bunch of presidents in
all departments and divisions of the company. Here the president of ABCTCL
head office is Mr. Rajeev Guptha who is in charge of all the activities of Hassan
head office. He controls it form corporate office of Banglore and the senior general
managers in Hassan head office have to act as per the instruction of Mr. Rajeev
Guptha.
Under Mr. Rajeev Guptha, Hassan head office is totally manage by two
senior general managers
1. MR. H.A VINAY – Senior General Manager of
 Public Relations
 Finance
 Accounts
 Procurement
He manages interaction with suppliers or estate owners, all the financial
transaction of ABCTCL by terms of payments and other monitary issues by final
checking and passing of invoices, maintenance of proper books of accounts from
time to time and along with it manages the procurement process of coffee.
Under Mr. H.A Vinay there are 2 assistant general managers:
Assistant General Manager Procurement : He is in charge of the whole
procurement process of coffee after it gets into ABCTCL.

He manages executive, superiors and sub-staff who are 10 in number. These
people are in charge of agent management of ABCTCL, Hassan and managing the
contractual labour required for procurement process.
Assistant General Manager Accounts : he is in charge of managing the books of
account and preparation of invoices and payment cheques which are to be send to
estate owners who sell their coffee to ABCTCL and also payment of commission
to the agent for convincing estate owners to sell their coffee beans to ABCTCL.
He also manages a sub-staff who are 4 in number and perform all the
accounting work and minor transaction required for accounting.
2. MR. NANJUDA – senior general manager of
 Production
 Maintenance
He manages the production process of coffee, management of garblers
(manual labour) and final dispatch of coffee as per the orders.
He manages 1 Assistant General Manager of Production who supervises the
production process which carries on through huge hulling machines, color sorting
machines and roasting machines.
This assistant general manager again manages executives and staff who are
15 in number and looks after each and every process and manages contractual
labour and garblers who indulge in manual separations of coffee beans and final
bagging of coffee and loading it into trucks.

However apart from the finance and production department, there is no
marketing department in Hassan head office of ABCTCL because it is export
oriented unit and all the marketing activities are carried out by marketing
managers from Banglore in corporate office of ABCTCL.
Even human resource managers of ABCTCL are from Banglore office and
all the human welfare activities of the employees are carried out from their though
regular visits by HR managers to its various branches.

FUNCTIONAL AREAS
Here in this chapter the functional areas of ABCTCL, 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 ABCTCL. The
whole company is successful through a huge chain of people who mange the
functioning of this company.
Even in Hassan head office of ABCTCL 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 Banglore office of ABCTCL 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 from Bangalore through out the company.
Apart from the people with in the organization, ABCTCL 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 ABCTCL and should keep them inform about the advantages and the prevailing
prices of coffee as per the bag rate in ABCTCL. There are about 40 to 42 agents of
ABCTCL 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 ABCTCL. And these entire agents are
personally managed by Hassan head office of ABCTCL.
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 ABCTCL.
 Controlling agents in such manner so that they should loyally do their agent
work only to ABCTCL & 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 ABCTCL
Hassan and how the curing works takes place.
First of all the raw coffee beans (parchment or cherry) are brought into
ABCTCL Hassan head office and stored into big warehouses. This raw coffee is
brought from the own plantation of ABCTCL 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.

SWOT ANALYSIS
Here is the analysis about the Strengths, Weaknesses, Opportunities and
Threats of ABCTCL.
STRENGTHS:
 The biggest strength of ABCTCL is that it is the only company in coffee
industry with a complete chain of coffee operations.
ABCTCL 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 ABCTCL
manages a complete chain of its operation.
 Among ABC'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 ABC until final dispatch/shipment.

Another 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 ABCTCL.
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 ABCTCL.
THREATS
New entrants in Indian market for coffee is one of the biggest threat for
ABCTCL for example :- STAR BUCKS, a company from USA is trying very hard
to enter the Indian market and trying to take over the café coffee day outlets of
ABCTCL. It is a very big company and has high quality standards.
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 ABCTCL.

VISION/MISSION
ABCTCL is right now a 500 + crore company and has a very big share in
export market of Indian coffee.
However their vision is to be a 1000 crore worth company until 2010, and
also to conquer the whole export market of India.
Its mission is to avoid the new entrants in café coffee day market, so it is
very fastly conquering the whole Indian café outlet market by very fastly
developing the outlets and today it has nearly 600 café coffee day outlets all over
India and 200 are present in Banglore.
GOALS
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 ABCTCL is to make the world recognize Indian coffee as
Indian coffee and not anything else.
So café coffee day outlets are being planned to open in all parts of the world
such as one present in VIENNA, Austria and make the Indian coffee popular.

OBJECTIVES
The following are some of the objectives of ABCTCL
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.
So here in this chapter we come to know about the vision, mission, goals
and objectives of ABCTCL and along with it the SWOT analysis has been done by
personal interaction with the SGM of the ABCTCL, head office, Hassan.

FINDINGS
The following are some of the findings as per me by working in
ABC Trading Co. Ltd.
 It is highly successful in the world coffee market and has grabbed huge
share of export market of coffee in India.
 It has the biggest plantations of its owns which is more than 5,000 Acres in
Chikmagalur District, which no other coffee exporting company in India
has.
 It is the aim of ABCTCL 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 1993.
 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 ABCTCL.
Further about the company can be known in conclusion part of this report.

CONCLUSION
As mentioned earlier and also by going through the whole company profile
and other data, it is clear that ABCTCL 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 ABCTCL 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, ABC
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 ABCTCL 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.

The success of this organization in its exports is known by the various
awards received by ABCTCL such as:-
YEAR AWARD
1999-2000 Top exporter of green coffee
2000 Top exporter of coffee to the region: U.S.A
2000-2001 Top Exporter Of Coffee To The Region:
European Union
Rather than its success in exports, it is also successful in all its divisions
management such as café coffee day division, beverages division, fresh & rounds
etc..
Its success in domestic market can be seen in our daily life with hundreds of
café outlets and coffee vending machines, resulting in millions of Indian
consumers consuming coffee products of ABCTCL everyday.
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 ABCTCL and also by
seeing its business strategies, I can say no wonders it will definitely achieve its
goals in the mere future.
Even the procurement and production process of coffee takes place very
accurately in the Hassan organization of ABCTCL and standards for each and
every step is maintained and followed.

DRAWBACKS:
But there is no business without drawbacks. Even ABCTCL 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 (GARBLERS) 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.

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 ABCTCL 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 ABCTCL Trading
Co. Ltd.

BIBLIOGRAPHY
SOURCES OF INFORMATION
Print Material :
Bean talkin’ Volume 1-13
Broachers & booklets of ABCTCL
Personal interaction with staff of ABCTCL, Head office, Hassan & Senior
General Manager Mr. H.A Vinay
Websites :
Amalgamated bean coffee trading Co. Ltd. – www.google.com
beantalkin@cafecoffeeday.com
www.coffeeday.com/
www.coffeeday.com/exports/about-us.html

Organization Study at Coffee Day

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