North South

University

Project On
[Basundhara food and beverage industries Ltd.]

Submitted to:
Course & Sec: Mgt 314, 14
Muhammad Maruf Ibne Wali (MfW)
Submitted by:

Name ID
Md. Mohtasim Neaz 133038130
MD. Rashedul Islam 1310209030
Fazlay Rabbi 1420538030
A.R.M Nafiz Ul Islam 1511511030
Sarkar
Zarin Fairuz Raka 1511099030
 Submission Date: December 15, 2017.

Acknowledgement

First of all, we are grateful to the Almighty Allah for giving us the patience, perseverance,
determination to complete this report.

We would like to express gratitude to our honorable course instructor Muhammad Maruf Ibne
Wali (MfW) sir for his kind patience, guidance and support for the preparation of this report and
this course. We will always be indebted to him for the valuable suggestion and the time that he
had spent for guiding us through the course. He has been very helpful during his office hours,
and he has always accepted us with a smiley face. Without his immense support and supervision
this research paper would not have been possible. We have tried to make full use of everything
we have learned throughout this course.

Finally, we would like to thank our friends for their unconditional support and guidance.

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December 15, 2017

Muhammad Maruf Ibne Wali (MfW)

School of Business,
North South University,
Dhaka 1229, Bangladesh.
Subject: Letter of Transmittal

Dear Sir,

It is indeed a great pleasure for us to be able to hand over the result of our hardship of the MGT
314 Group project. This report is the result of the knowledge which has been acquired from the
respective course.

We tried our level best for preparing this report. The information of this report is mainly based
on the interview and inspection that were done during the factory visit. Some other details were
gathered from the secondary sources of websites. All of us gave our hundred percent for making
this report come together.

We, fervently hope that you will find this report worth reading. Please feel free for any query or
clarification that you would like us to explain. Hope you will appreciate our hard work and
excuse the minor errors. Thanking you for your cooperation.

Sincerely,

Name ID
1. MD. Rashedul Islam (1310209030)
2. MD. Mohtasim Neaz (1330381630)

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3. Fazlay Rabbi (1420538030)
4. A.R.M Nafiz Ul Islam Sarkar (1511511030)
5. Zarin Fairuz Raka (1511099030)

Table of Content

Topic Name Page No

Industry Background 4

Company background 5

Introduction 7

Production Process 8

Process Map 12

Problems 13

Solutions 14

Recommendation 15
Conclusion 16

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 References 17

Appendix 18

INDUSTRY BACKGROUND

Ahmed Akbar Sobhan-a visionary business person and a dynamic specialist, is the organizer of
Bashundhara Group - one of the biggest business combinations of Bangladesh. Driven by the
huge accomplishment of its initially concern "East West Property Development (Pvt.) Ltd", a
land wander, Bashundhara put resources into assorted fields of assembling and exchanging. The
Group now has more than 20 noteworthy agent concerns situated in various regions of the nation.
It has made some amazing progress in achieving its desire by guaranteeing the client's needs are
dependably met. Bashundhara has advance tied its holding with the general population and the
nation presenting its most recent wander, Bashundhara Food and Beverage Industries Ltd.
(BFBIL). BFBIL-the home of nourishment, started its excursion with a dream to take care of the
developing demand for food and beverage things of the nation. BFBIL's main goal is to create
top notch food items that will gain the certainty and trust of purchasers by improving their
personal satisfaction. It is BFBIL's guarantee to its clients to guarantee accessibility of
astounding items at a reasonable cost. As a socially capable organization, it intends to create
FMCG that meet global wellbeing models and cling to eco-accommodating bundling
prerequisites. It intends to address the developing interest of food things in the nation utilizing
ecologically stable arrangements. This responsibility regarding conveying better items than
clients utilizing earth well-disposed practices separates BFBIL from different organizations and
will guarantee its driving position in the FMCG field.

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 COMPANY BACKGROUND

The Bashundhara Group has begun operation as a land wander known as "Bashundhara" under
the aegis of the Group's initially concern – the East West Property Development (Pvt) Ltd in
1987. This undertaking ended up being an exceptionally effective one and had helped cultivate
the development of trust and certainty of the urban individuals in "Bashundhara". Dhaka's
expanding populace, combined with an obviously moderate development of lodging prompted
the point of interest achievement of Bashundhara driven by the repercussions of this
achievement, Bashundhara outfitted to put resources into new fields, including assembling and
exchanging. More ventures were built up in the mid-1990s, covering different exercises
including the generation of cement, paper and mash, tissue paper, steel, LP Gas packaging and
appropriation, and an exchanging organization, among others. The group encountered this
colossal development in a traverse of less than 10 years. Amid these period, extra plans ashore
development and land were propelled and those activities concentrated all the more strongly on
expanding responsiveness to customer needs. The Group's first traded on an open market
organization, the Meghna Cement Mills Limited, is as of now recorded on the two Stock
Exchanges of Bangladesh. The Group now has more than 20 noteworthy concerns situated in
various zones of the nation. The multi-faceted shopping centre and entertainment focus called the
Bashundhara City has added excitement to the development of the group. The Bashundhara City
Development Ltd is one stage ahead in the longstanding push to fortify connections with the
general individuals through the special offering of business operations and amusement offices
under single roof. East West Media Group Ltd is the broad communications undertaking of the
Bashundhara Group that was set up in 2009. It now claims Bangla dailies – "The Kaler Kantho"
and "The Bangladesh Pratidin", English daily paper the "Every day Sun" and bilingual online
entryway "banglanews24.com.". The media house likewise wants to dispatch a FM radio and a

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TV station soon. The Group has made considerable progress in achieving its objectives by
complimenting to customer needs, taking continuously lessons from past ventures, improving
and collaborating its undertaking usage process. Through significant venture endeavors in every
single key part, Bashundhara has genuinely added to the nation's monetary soundness in money
related and capital markets. Fundamental the greater part of the Group's exercises are the
repeating themes of progress, adaptability, and cultivating nearer ties with the Government, the
City Corporation and Bashundhara customers. A large portion of its undertakings have been
examples of overcoming adversity – this reality alone is sufficient to legitimize a feeling of trust
in the Company's future.

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 Introduction
Food industry is a fast growing sector in Bangladesh, employing an important portion of the
labor force in the country.  Between 2004 and 2010, the food processing industry in Bangladesh
grew at an average 7.7 percent per annum. Bangladesh Bureau of Statistics, in its 25006
Economic Census, reported that there were approximately 246 medium-sized food processing
industries employing 19 percent of the industrial manufacturing workforce in Bangladesh or 8
percent of the total manufacturing labor force. The food industry employs 2.45 percent of the
country's total labor force and its share in the GDP was 2.01 percent in 2010. There are also
numerous small scale factories and domestic units engaged in food processing throughout the
country. According to some industry analysts, the food processing sector in Bangladesh is a 4.5
billion US Dollar industry. In 2010, Bangladesh exported over $700 million worth of processed
food and beverages, over 60 percent of them were shrimp and fish products. As a fundamental
human need, food and beverages always have played a central part in our lives. Food processing
in Bangladesh has traditionally been small scale with domestic or family business using common
processing knowledge for the conservation and handling of raw agricultural commodities to
make them usable as food and feed. Although commercial scale food processing using modern
technology especially for wheat and rice milling, mustard seed crushing and very limited bread
and cookie manufacturing appeared during the 1960s, the growth of this sector did not gain
momentum in terms of operational scale and quality until the 1980s. Recently the defining
characteristics of the industry has been the processing of increasingly diverse products to meet
the changing demands of the Bangladesh population. Today, food and beverage processing and
manufacturing is one of the largest employment industries in Bangladesh. Bashundhara food and
beverage industries ltd. One of them. Bashundhara Atta, Maida, Suji are produced from the finest

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wheat using European technology – perfect for preparing healthy and nutritious food. During
production of Bashundara Atta, Maida, Suji the wheat goes through many automatic cleaning
stages that remove all impurities.

Production Process
Grading the wheat: Wheat is received at the flour mill and inspected. Samples of wheat
are taken for physical and chemical analysis. The wheat is graded based on several factors, the
most important of which is the protein content. The wheat is stored in silos with wheat of the
same grade until needed for milling.

Purifying the wheat:

 Before wheat can be ground into flour it must be free of foreign matter. This requires
several different cleaning processes. At each step of purification, the wheat is inspected
and purified again if necessary.
 The first device used to purify wheat is known as a separator. This machine passes the
wheat over a series of metal screens. The wheat and other small particles pass through the
screen while large objects such as sticks and rocks are removed.
 The wheat next passes through an aspirator. This device works like a vacuum cleaner.
The aspirator sucks up foreign matter which is lighter than the wheat and removes it.
 Other foreign objects are removed in various ways. One device, known as a disk
separator, moves the wheat over a series of disks with indentations that collect objects the
size of a grain of wheat. Smaller or larger objects pass over the disks and are removed.
 Another device, known as a spiral seed separator, makes use of the fact that wheat grains
are oval while most other plant seeds are round. The wheat moves down a rapidly
spinning cylinder. The oval wheat grains tend to move toward the center of the cylinder
while the round seeds tend to move to the sides of the cylinder, where they are removed.

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  Other methods used to purify wheat include magnets to remove small pieces of metal,
scourers to scrape off dirt and hair, and electronic color sorting machines to remove
material which is not the same color as wheat.

Preparing the wheat for grinding:

 The purified wheat is washed in warm water and placed in a centrifuge to be spun dry.
During this process any remaining foreign matter is washed away.

 The moisture content of the wheat must now be controlled to allow the outer layer of bran
to be removed efficiently during grinding. This process is known as conditioning or
tempering. Several methods exist of controlling the amount of water present within each
grain of wheat. Usually this involves adding, rather than removing, moisture.

 Cold conditioning involves soaking the wheat in cold water for one to three days. Warm
conditioning involves soaking the wheat in water at a temperature of 115°F (46°C) for
60-90 minutes and letting it rest for one day. Hot conditioning involves soaking the wheat
in water at a temperature of 140°F (60°C) for a short period of time. This method is
difficult to control and is rarely used. Instead of water, wheat may also be conditioned
with steam at various temperatures and pressures for various amounts of time. If
conditioning results in too much moisture, or if the wheat happens to be too moist after
purification, water can be removed by vacuum dryers.

Grinding the wheat:

 Wheat of different grades and moistures is blended together to obtain a batch of wheat
with the characteristics necessary to make the kind of flour being manufactured. At this
point, the wheat may be processed in an Entoleter, a trade name for a device with rapidly
spinning disks which hurl the grains of wheat against small metal pins. Those grains
which crack are considered to be unsuitable for grinding and are removed.

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  The wheat moves between two large metal rollers known as breaker rolls. These rollers
are of two different sizes and move at different speeds. They also contain spiral grooves
which crack open the grains of wheat and begin to separate the interior of the wheat from
the outer layer of bran. The product of the breaker rolls passes through metal sieves to
separate it into three categories. The finest material resembles a coarse flour and is
known as middling or farina. Larger pieces of the interior are known as semolina. The
third category consists of pieces of the interior which are still attached to the bran. The
middling move to the middling purifier and the other materials move to another pair of
breaker rolls. About four or five pairs of breaker rolls are needed to produce the
necessary amount of middling.

 The middling purifier moves the middling over a vibrating screen. Air is blown up
through the screen to remove the lighter pieces of bran which are mixed with the
middling. The middling pass through the screen to be more finely ground.

 Middling are ground into flour by pairs of large, smooth metal rollers. Each time the flour
is ground it passes through sieves to separate it into flours of different fineness. These
sieves are made of metal wire when the flour is coarse, but are made of nylon or silk
when the flour is fine. By sifting, separating, and regrinding the flour, several different
grades of flour are produced at the same time. These are combined as needed to produce
the desired final products.

Processing the flour:

 15 Small amounts of bleaching agents and oxidizing agents are usually added to the flour
after milling. Vitamins and minerals are added as required by law to produce enriched
flour. Leavening agents and salt are added to produce self-rising flour. The flour is
matured for one or two months.

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  Bashundhara Atta/moyda is produced from the finest wheat using European technology –
perfect for preparing healthy and nutritious food. During production of Bashundara
Atta/Moyda, the wheat goes through many automatic cleaning stages that remove all
impurities. Bashundhara Atta is best for preparing Ruti, Soft Biscuits, Sliced Cake and
many more delicious items. Bashundhara Atta is available in 1kg & 2kg retail pack and
37kg & 50kg bulk pack.

Quality Control:
The quality control of flour begins when the wheat is received at the flour mill. The wheat is
tested for its protein content and for its ash content. The ash content is the portion which remains
after burning and consists of various minerals.

During each step of the purification process, several samples are taken to ensure that no foreign
matter ends up in the flour. Since flour is intended for human consumption, all the equipment
used in milling is thoroughly cleaned and sterilized by hot steam and ultraviolet light. The
equipment is also treated with antibacterial agents and antifungal agents to kill any microscopic
organisms which might contaminate it. Hot water is used to remove any remaining traces of
these agents.

The final product of milling is tested for baking in test kitchens to ensure that it is suitable for the
uses for which it is intended. The vitamin and mineral content is measured in order to comply
with government standards. The exact amount of additives present is measured to ensure
accurate labeling.

Byproducts/Waste:
A kernel of wheat consists of three parts, two of which can be considered byproducts of the
milling process. The bran is the outer covering of the kernel and is high in fiber. The germ is the
innermost portion of the kernel and is high in fat. The endosperm makes up the bulk of the kernel

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and is high in proteins and carbohydrates. Whole wheat flour uses all parts of the kernel, but
white flour uses only the endosperm.

Bran removed during milling is often added to breakfast cereals and baked goods as a source of
fiber. It is also widely used in animal feeds. Wheat germ removed during milling is often used as
a food supplement or as a source of edible vegetable oil. Like bran, it is also used in animal
feeds.

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 Problems
1) The production capacity of their machine is 1000 metric ton per day. These machines
can’t produce more than that. But gradually with usage, the production capacity of the
machine usually decreases. Moreover, there is sometimes electric breakdown and lack of
gas. Lack of gas is actually one of the major problems because Bangladesh government is
not providing gas for the industries as there is shortage of gas in our country. But since
they have to face breakdowns at sudden times, they usually sought help from other
countries to have the supply of gas to continue the operation.

2) During recruiting system there is a problem of being partial. Since it’s a private company,
the owner may have few employees of their own choice. Sometimes due to the
recommendation given by the owner, HR manager needs to hire a few employees without
interview. In an administration system the HR policy states that if an employee from
middle level is not improving then the lower level employees don’t get chance to promote
as well. Then the HR manager usually notifies that person who is not improving. That
employee is recommended to improve so that they can give promotion to both the mid-
level and lower level employees. For example; MNCs usually gives a notice to recover
within 6 months and if that employee can’t improve then they are said to resign. But in
private companies these don’t happen and the junior executives sometimes jump to
deputy manager skipping the senior executive. Then there comes a question of
experience, knowledge and system of promotion.

3) Dealership distribution system: Basundhara supplies the Atta, Moyda, Suji to its selected
dealers all over the country. The problem is the company is planning to increase its
production by setting up a new machine. From this machine additional 1500 metric ton of
Atta, Moyda, Suji will be produced daily. This would create pressure on the company to
sell more. So, the company might face problems in distributing goods to its customers.
Also, it needs to pay commission to its dealers, but the dealers have other products to sell
as well. So, the amount of sale isn’t as expected.

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 Solutions

Gas solution

The company needs gas for the production, but the govt. of Bangladesh is not willing to provide
the gas for the new factories. The company is now depending on electric supply; as a result, the
production cost gets higher. If the government agrees to provide gas to Basundhara, then the
company can produce goods at a lower cost. It will help them to make more profit. The cost
efficiency would be achieved then.

Recruiting system amendment

As per the research, the management or employees are hired sometimes according to the will of
the top management. As a result, a few inefficient employees can enter into the factory. This
could be solved by being less partial while recruiting. This would be beneficial to the company
that what is thought.

Distribution problem solving

The company is big enough to create its own distribution channel in the country. This could help
the company to minimize cost, and as the company has the experience to work with the dealers
for a long period of time, the company can easily open its own distribution channel all over the
country to increase sales. The management of Basundhara is good enough to handle the pressure.

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 Recommendation

The Basundhara Group is undoubtedly one of the biggest groups in Bangladesh. It has been
performing well since a long time. The plan and the policy of the company is always up to the
mark. It has a huge influence of the economy of Bangladesh. One of the sectors of this company,
Basundhara Food and Beverage Ltd. is being very good at generating revenues for the company.
This sector can do even better if it gets gas connection from the government. In this case it can
convince the government to get the gas line added to the factory in Keranigonj. This will surely
help the company to produce at a cheaper rate, and the efficiency level would also increase.
Basundhara is utilizing is resources very efficiently, but this step to convince govt. to get the gas
line would take the company in a better position in the future.

Also, the company can be more careful about recruiting employees. It should focus on getting
better employees recruited in the system. This would increase the productivity. The goodwill of
the company will rise higher.

Basundhara Food and Beverage Industries Ltd. should be more proactive on promoting its goods
in the market. Do necessary research and supply the goods as per the demand would be
beneficial. The company should make sure that its products are available all over the country,
even in the small shop of a village. Through intense promotion the company can increase the
popularity of its goods and increase the demand as well. The promotion should focus on
consumer benefits and the quality, and safeness the company provides with its products by
producing using automated and high technological machines. The increase in demand would be
possible only if the company does high promotion. The company also can use its Brand name; it
has a strong brand value among the Bangladeshi customers.

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 Conclusion
Basundhara group is one of the biggest companies available in Bangladesh. The group is doing
really well. It is intending to extend its business more. The future of the company looks good so
far. In the food and beverage sector the company is also performing good.

The competition in this sector is high. Bashundhara Food and Beverage Industries Limited
passed the final audits by Bureau Veritas Bangladesh after the successful implementation of
HACCP Food Safety Risk Management System very recently. HACCP is certification is a
system that recognizes that a food business has developed, documented and implemented
systems and procedures in accordance with HACCP. HACCP stands for Hazard Analysis
Critical Control point and is basically a tool to help identify and control food safety hazards that
may occur within the food business. This ensures the safeness of the products. The company is
doing good, so it should be continuing what it is doing. The strategies and plans should be taken
more carefully for the betterment of the company.

Reference
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1. Home, Basundhara Group. (2014, January 01).

Retrieved from http://www.bashundharagroup.com/

2. Food, Basundhara Group. (2015, April 10).

Retrieved from http://www.bashundharafood.com/

3. Bashundhara Food and Beverage Industries Limited gets HACCP certification, Daily Star.
(2017, October 30). Retrieved from http://www.daily-sun.com/post/265112/Bashundhara-Food-
and-Beverage-Industries-Limited-gets-HACCP-certification

Appendix

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