STRATEGIC PROUREMENT

PROJECT

Group members:

SYED FAREED ULLAH (02-111191-211)

ALI HAMZA (02-111191-105)
HARIS KHAN (02-111191-282)
MOOSA HASAAN (02-111191- )
 ENGLISH BISCUITS MANUFACTURERS

English Biscuit Manufacturers (Private) Limited or (EBM), are the pioneers of packaged biscuit
manufacturing in Pakistan and the country's leading manufacturer of biscuits and

INTRODUCTION:

English Biscuit Manufacturers (Private) Limited was established as a joint venture company in 1965 with
the name of Peek. Freans Pakistan Limited. In 1966, the UK sponsor company was renamed Associated
Biscuits International Limited (ABIL), while the venture was renamed English Biscuit Manufacturers
Private Limited (EBM), which stands to date. EBM started manufacturing and marketing the world
famous Peek Freans range in 1967 in order to provide Pakistani consumers with nutritious and
hygienically packed biscuits of the highest quality. True to its corporate claim, The Legend Leads', EBM
has led the biscuit industry in Pakistan for 39 years by playing a pioneering role in providing innovative
and high quality biscuits for every taste bud. EBM is a trademark, Pied Piper, made its mark three and a
half decades ago, but continues to remain in the hearts, minds, and souls of the people through the
variety and excellent quality of biscuits manufactured under its umbrella. EBM enjoys the distinction of
being the first food company in Pakistan to promote biscuits as 'food between meals' EBM has been in
the business of manufacturing and marketing branded biscuits in Pakistan for 39 years. The brand name
'Peek Freans' is a household name, and people trust and believe in the quality of the products produced
under this brand, EBM is also the first biscuit company in Pakistan to have achieved ISO 9001
Certification in correspondence with its institutional slogan The Legend Leads. The achievement also
endorses the company's firm commitment to high standards of quality. English Biscuit Manufacturers
(Pvt) Ltd, is the country's leading manufacturer of biscuits and cookies since 1967, with an annual sales
volume and production capacity of more than 65, 000 tons and a turnover of more than $1 Million EBM.

The World of EBM

EBM has been a part of your life for over 40 years. For more than four decades, EBM continues to
remain in the hearts, minds, and souls of the people through the variety and excellent quality of biscuits
manufactured under its umbrella. Our philosophy has been to produce biscuits which meet international
standards of quality and hygiene in terms of Food Safety and wholesomeness. Every member of EBM is
committed to owning this philosophy. and has the mind-set to produce the best of products under the
trademark of "Peek Freans".

The Company has an annual sales volume and production capacity in excess of Rs. 16 billion and 100,000
tons respectively. The Company takes pride in the leadership position it enjoys with a market share of
over 40% of the branded biscuit market.

EBM is the only biscuit company in Pakistan to have achieved International Certifications pertaining to
Quality Control, Environmental Management Systems, Human Resources Management and Information
Security Management Systems. The Peek Freans brand has recently been given the recognition of the
internationally acclaimed Superbrands status.

In the field of R&D, EBM has established its very own Centre of Excellence, a state-of-the art research
facility, to facilitate international level of researches. The Centre of Excellence also helps in developing
students of food technology, nutrition, hio-chemistry and other related scientific disciplines with the
objective of attaining lead in ground-breaking studies pertaining to food grains and other related topics.

Product Line

EBML's product line consists of numerous brands under the three major brands, that is Peek Freans,
English Biscuits and CFL Beside these they have various commodity biscuits such as Chocolate Sandwich
and gluco Biscuits In total EBML produces 97 types of biscuits In terms of flavor, size of packages,
different brands etc.

As far as Product Line Extension is concerned, EBML has a wide "products line length" with regard to
increased quality level and increased price level and vice versa. Thus we can say that EBML has stretched
both ways that is it has come up with products which are better in quality and those which cater to
those masses with a smaller level of disposable income.

In our opinion EBML has spread its wings too far. The company is maintaining such a large variety of
products that it actually cannot focus on all of them effectively. There is a serious need for EBML to
revise and rethink its strategy in terms of which products or brands to continue and which ones to
discontinue.

Only by reducing its spread of brands will the company be able to enhance its promotional activities for
its more profitable and front runner brands. This will surely lead to profitable brands that can actually
aggressively compete with LU, Dane Food sand Meiji. In turn, by being able to compete effectively and
efficiently, EBML can regain its lost market leadership position
As far as new product launches are concerned, EBML's launches in the past such as "Sooper" launched in
August 1996, and "Gluco Plus" launched in July 1997, have been priced using the "Good Value Strategy".
This is specially seen in the case of Gluco Plus as it is currently priced at the same rate as the original
Gluco biscuit. It gives of an impression that EBML is pricing a better product at the same regular price at
which it prices the original Gluco biscuit.

EBM PRODUCT LINE

PLAIN SWEET BISCUITS:

 Marie
 Sooper
 click

CREAM BISCUITS:

 Lemon and chocolate sandwich

 Rio
 Choco Vanilla Sandwich
 Chocolate Sandwich
 Lemon Sandwich
 Rio Double Treat Chocolate/Vanilla
 Rio Double Treat Strawberry/Vanilla
 Rio Vanilla

CRACKERS:

 Butter Puff
 Saltish
 sweet cracker
 Marvell

NUTS:

 •Party
 •Peanut Pick
 Peanut Pistal

FARM HOUSE COOKIES;

 Chocolate Chip
 Short Bread Coconut Crunch

Process Flow:
Under the manufacturing departments, the process flow is "Sequential", i.e. the output of one
department is the input for the other department. The production of the different types of biscuits is
carried on side by side. If anyone department fails to do what it is required or the production does not
meet the required quality standards then the production process flow would stop. The production
activities of one department are dependent on the degree of completion of production activities in the
preceding departments. It is, therefore, essential for the company to keep a constant flow of the
production process to achieve economies of scale. In this respect, it is also crucial for EBM to maintain
its quality standards even under tightly controlled and accurate production activities Freans

MANUFACTURING:
The manufacturing process at EBM involves the conversion of raw and packaging material into finished
product. EBM production takes place at the two factories located in Karachi and Hattar.

SOOPER:
• Sooper is a Danish style cookie with a rich homemade appeal.
• It is the single largest selling cookie brand with a unique attribute of "melting in mouth" that is
unparalleled to any cookie in Pakistan.
• A supreme blend of egg and milk results in a soft cookie with crispy bite and delicious natural
milk and egg taste in mouth.
• The brand has a universal market appeal that cuts: across age and income brackets.
• Sooper is available in family pack, half roll, snack pack and ticky pack.
• sooper biscuit" egg & milk cookies" best-selling cookies in Pakistan.

English biscuit manufacturers (pvt) ltd., or (ebm), is the country's leading manufacturer of biscuits and
cookies since 1967, with an annual sales volume and production capacity of more than 65,000 tons and
a turnover of more than rs. 7.0 billion. ebm is the only company in the industry to have achieved
recognized international certifications pertaining to quality control, environmental management system
and human resources management, including iso 9001:2000, iso 14001:2004, haccp certifications and iip
(investors in people) recognition. ebm is also the only food company to have been awarded
environmental excellence award for four successive years 2004, 2005, 2006 & 2007

SOOPER STRATEGY
EBM has introduced Sooper biscuits in 1996 but failed due to the reason for positioned it as baker
product. In 20003 Sooper was again launched for heavy advertisement activities. Sooper began to fast
selling and its demand exceeds than supply. Sooper become the market leader leading behind Eggo.
Market share comprises of 35 percent of whole biscuit market. After many years in success Sooper
enhanced its distribution to rural areas with the introduction of Sooper distribution Vans.

EBM strategy was to create bakery related biscuit product but it was failed due to its large volume of
production to get in that bakery product. After that EBM re-launched Sooper by targeting it to youth and
adults and with new product design and colour. After those changes they made strong advertising
campaign to build new product in consumer mind. This hit was successful major reason was renewal
emotions and aspiration value that attached by advertising campaign. After rise of price in the raw
material did not affect the brand as much this is due to the reason that they enhance their distribution
to rural areas to get the volume of sale increased.

PRODUCTION FUNCTIONS OF SOOPER

Manufacturing biscuits begins with a planning process. At first, the production demand is analyzed. The
EBM's management then creates a factory production plan ensuring the people working at the site, and
the machines that are running, are best utilized so that time and energy is not wasted.

MATERIAL RECEIVING
The necessary raw and packing materials, as required by the production plan, are then purchased. The
purchased stock is then received from the various suppliers at the factory store that is also called Raw
Material Store (RMS). All incoming materials are checked for quality in Quality Assurance Department.

The store is responsible for issuing materials for the production process according to the planned
requirements. It is only at this point that biscuits start to be made. After approval, incoming material is
stored in raw material store and packaging material store, whereas sensitive items such as butter, color,
flavors are stored in cold rooms. In rest of the cases, Quality assurance performs testing after material is
stored in relevant stores and then accepts/rejects the material.

PRODUCTION PROCESS
• Information for daily production plan is supplied by marketing and sales department on the
basis of customer demand. Keeping in view these factors, production plan is made.

The whole production process consists of 5 different stages which are as follow.

PRODUCTION STEP 1: MIXING

The mixing stage is of great importance in biscuit-making technology, as a good process starts from the
head of the line. Flour and sugar is dispensed into large mixers. The ingredients that are used in smaller
quantities are hand weighed and added into the mixing bowl for each batch of dough to be mixed. The
ingredients are then mixed to form dough in the mixing bowl according to a specific mixing procedure.
The mixing is done by two ways

 Vertical way mixing

 Horizontal way mixing

In vertical mixing, the mixture is blend in vertical direction through a machine while in horizontal mixing
the mixture is blend in horizontal direction, depending on the recipe of the biscuit. The mixture (dough)
is then forwarded to next step. There are a variety of factors that are important when it comes to mixing
the dough: the temperature of the ingredients, the mixing time, and the order in which ingredients are
added.

PRODUCTION STEP 2: CUTTING

After mixing, the dough is then tipped into a hopper to cutting line and gravity-fed into the dough
sheeting section of the machine. In this process the dough is fed through various rollers to form a sheet
of dough. Depending on what type of biscuit is being produced, this process varies. Dough passes
through the conveyer belt and is shaped according to product. Different forming techniques are used to
get the required shape and size of the piece of dough which will form the biscuit.

PRODUCTION STEP 3: BAKING

 Unbaked biscuits enter the gas-fired oven, metal conveyer belt is constantly moving at a slow
pace, where they are baked to form fresh, warm and deliciously smelling biscuits
 Biscuits are baked rather than fried, so the oil merely assists the flavor particles to cling to the
biscuit surface.
 Different types of heating devices are present in oven which provides different temperature.
 Approximately 6 minutes are passed in oven during which different temperatures treatment are
given to biscuits starting form lower to higher temperature.
 Conveyer belt then moves to Buffer Zone. COOLING (BUFFER ZONE)
 After high temperature treatment baked, biscuits are not very stable and texture is not fully
developed, that's why they are passed through Buffer Zone for cooling.
 It is merely an area consisting of relatively low temperature. Conveyer belt containing biscuits
passes through this area to cool down the biscuits.

PRODUCTION STEP 4: COOLING

After baking biscuits, they are passed on to cooling conveyors for natural cooling prior to packing. These
conveyors are generally 300-400 ft. and can be of two or 3 deck type as per space availability. In the
conveyors, the temperature is brought down to room temperature. Natural cooling is preferred to force
cooling as it maintains the texture quality of biscuit.

PRODUCTION STEP 5: PACKAGING

 After cooling, workers pick the biscuits for conveyer belt and place them in different gauges set
according to Ticky Pack (TP), Snack Pack (SP), Half Roll (HR) or Family Pack (FP).
 Biscuits are automatically packed in final packaging material (inner sealing) in case of TP, SN, HR,
and then are finally packed in master cartons.
 FP is packed in 3 different packaging material; inner sealing, outer sealing and then finally
master carton. Master cartons are sealed and are transferred to finished goods store.

DISPATC
 Products are stored in finished goods store according to date are dispatched on FIFO (First in
First Out) basis.
 QA performs final checking of finished products, after which product is dispatched through
trucks to different distributors.
 Distributors further distribute the product to retailers