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English Biscuits Manufacturers

Nourishing Lives, Hearts, and Communities

Group Members:

Hassan Ali Anwer (BS688588)


Saim Ali Anwer (BS678587)
Muhammad Sami (BS627661)
Daniyal Ahmed Javed
(BS688619)
Adeeba Nasir (BS709212)
Simran Saeed (BS678433)
Abdul Moiz Dawra (BS627766)
What do we know about EBM?

Established as a joint venture company in 1965


Initially named Peak Frean’s Pakistan Limited
Venture was renamed English Biscuit Manufacturers (Private) Limited
(EBM).
The Story of Five Decades
Started manufacturing and marketing the world-famous Peak Freans range 1967
EBM launched “Saltish,” Pakistan’s first crackers.
EBM came up with the “Chocolate Sandwich” in 1971
Launches Peanut Pik and Zeera Plus in 1984
In 1990, chocolate chip cookies were launched
In 1995, set up CFL and invested in the new industrial zone of Hattar in KPK
In 1996, SOOPER was launched
In 2017, a new look from the Pied Piper was introduced
In 2020, Peak Freans came with another launch that was Pakistan’s first donut cake
With their recent Super Soft Bakes and Gluco Teddy launch, they are ready to innovate in the
coming years.
OUR VISION
To be the leading food company, delighting and nourishing our
consumers with superior products and services: while leading sales,
shares and profits, thus allowing our people, community and
stakeholders to succeed.
OUR MISSION
To provide wholesome, nutritious, hygienic food-between-meals
across Pakistan and beyond.
General Statistics

 In Pakistan, the biscuit industry is quite large, crossing USD1.2 Billion in


2020.
30% of the biscuits consumed by the consumers yearly are open bakery biscuits
Companies such as English Biscuit Manufacturers, Continental, and Bisconni
dominate in the locally manufactured sector
Imported biscuits take up around 9% of the market share.
EBM Statistics

EBM is credited as being the pioneers of


packaged biscuits in Pakistan
Holds over 40% market share
EBM ‘s production capacity exceeded a hefty
figure of 100,000 tons annually
Gains revenues in excess of 68 Million US
dollars, 20.5 Billion in pkr.
Its products are available in over 500,000 stores
across Pakistan due to the wide network of over
500 distributors
Product Line
English biscuit Manufacturers has a wide variety of products on the consumer market:
- Saltish
- Marie
- Chocolate sandwich
- Butter puff
- Lemon sandwich
- Zeera
- Peanut pik
- Click
- Gluco
- Party
- Sooper
- Rio
- Farmhouse Cookies
- Chocolicious
- Choco bites
- Jam delight
- Cake up
- Cake Up Triple Chocolate
- Cake Up Sandwich
Key Suppliers of EBM
Habib sugar mill, providing sugar.
Millac Foods, providing butter & milk
Saima Packaging, providing the packaging of the products
Most of the suppliers of EBM are local and situated within Pakistan
Some are imported including:
- Machinery, imported from Europe and used in manufacturing
- Palm oil, imported from East Asia (Malaysia, China, Indonesia)
Focuses on a heavily regulated form of quality control and has strict rules and
regulations in place for its suppliers
Product Family Groups

Produces specific products in specific numbers


A certain level of knowledge is maintained about the market and flavours to know the demand
Demand forecasting is how EBM calculates which of its offerings it should produce and in what quantities
Annual, monthly, as well as quarterly meetings to decide production goals, manufacturing output, which
product is more in-demand than others
Executives and top management of the company meets at least quarterly to discuss these strategies and
forecast the demand for specific lines of biscuits.
Offers a lot of different brands which are
interlinked in some way to each other, being
grouped up into families with being marketed
together and having similar manufacturing
processes. Some are:
- The cream family: Chocolate sandwich,
vanilla sandwich, lemon sandwich, Rio
chocolate, Rio vanilla, Rio strawberry, Rio
mix, Rio double treat
- The plain biscuit family: Sooper (the king of
all local biscuits in Pakistan), Gluco, Marie,
whole wheat slice
- The cracker family: Saltish, butter puff,
marvell, zeera plus
- The cookie family: Farmhouse Chocolate
chip, farmhouse butter cookie, farmhouse
coconut cookies, chocolicious chocolate chip
cookies. Farmhouse product line happens to
be their most premium brand.
- The Nut family: peanut pik, peanut pista
Holistic Marketing & Manufacturing Approach
Takes the approach of bundling some of the products together in families
It is done based on their similarities and then markets and advertises them together
This also includes manufacturing and packaging them together for storage in the
warehouses
They are also placed in similar sections of the grocery store
Their batches are often prepared together due to the similarities in their ingredients &
packaging
Products are also shipped in accordance with their respective families
Value Proposition Via R&D & Strong Supply
Chains

EBM’s slogan ‘nourishing lives, hearts, and communities’ was launched with
the idea of consumer-focused business, giving value to consumers, and creating
value for money.
Aims to appeal to a wide variety of consumers with products that are
manufactured under strict quality control regulations along with quick and
efficient supply chains
The products are very well researched, the Research & development department
utilizes resources to figure out what the target consumer wants, what their needs
and preferences are, and what they require
Consumer-Focused Approach

Employs a consumer centric approach, focusing on providing each consumer something they
would like
Uses a mass volume method but at the same time do enough research to find out what each person
in the market wants
Segmented every demographic in the market on a micro as well as macro level
For children, they also have several specific products. Such as the mini cakes they recently
launched
Some brands are catered towards children, some towards the older generations. Some towards
adults in the middle of their work lives, some are general focused on the general market appealing to
every kind of consumer from every age group.
Customer Service

Heavy emphasis on quality control all over the factory


Quality control and assurance from start to finish happens at every level and every step of the
production process
Company has checks and balances set in place that heavily regulate which products pass and which
do not
The ones that fail are removed, and put back into the assembly line in order to correct the defects
that have been discovered
Production Planning
Annual and Quarterly meetings
Forecasts demand via market research, research and development, and
partnerships with distributors as well as retailers.

Using the information gathered via research and forecasting, specific


quotas are set and demand is decided to be a certain figure, based on the
figure forecasted, the company plans its production throughout the different
phases of the year
This is a major reason why the company often does not have excess stock
which has to be disposed
Production meets the demand on a 1 to 1 ratio and there is very little excess
waste left
Synergy Between Departments

EBM aims to create synergy between the departments where every department works in unison, share data
real-time and making sure everyone is on the same page.
At EBM the general belief is that no one department can function well in isolation without the help of other
departments
The layout of the factory was such that all the different departments had their cubicles and offices on one
singular floor where they were all neighboring each other and had connected phone lines as well.
They were situated in such a way that it was very easy for someone to get up and walk over to the other
department’s area, however they were still separated enough by glass doors that each department has its own
limited form of privacy and isolation to do the transactions of their respective work in peace while maintaining
contact.
Challenges Being Faced Currently

External forces affecting the market, especially the inflation rate


it is under pressure not to raise prices too much so that the product does not become out of reach for the
average consumer
Due to the worsening conditions of the Pakistani economy, the US dollar pushing 300 PKR has become a
huge problem and an essential ingredient in the composition of the recipes of the biscuits, palm oil is costing
much expensive to import
The supply chain is further impacted by the floods that came earlier. This inevitably impacted the suppliers
of EBM who are mostly localized and exist within the country.
EBM takes great care in localization, and tries hard to keep its ingredients localized as much as possible but
when conditions get this bad regarding inflation, economic crisis, devastating crop losses, and catastrophic
flooding, everything normally suffers
Effects of Fuel Pricing on The Supply Chain
Fuel pricing has a major impact on the supply chain of all the
product lines of EBM.
It utilizes a vast network of hundreds of distributors and works
with various trucking companies in order to get its products to their
desired market
Fuel price is tied to everything as nearly every manufacturer
selling locally uses trucking, and sometimes cargo trains in order to
transport their products all over the country. The increase in fuel
prices at such a rate made Pakistani manufacturers struggle to cope
with the drastically higher shipping costs.
Sales Productivity Measurement

Sales productivity data is also measured by EBM regularly


The entire sales team is linked to the sales automation system to make sure products don’t stay out
of stock for too long anywhere at any time regardless of where thy may be. This is connected to the
distribution network which is incredibly strong and rigid in order to increase the sales growth figures.
If something goes out of stock at any outlet, the distributors will keep close contact with the
retailer and will make sure that the product is delivered before it runs out entirely. Real-time
information is extremely important for this to work.
Plant Location
There are currently two production facilities or plants operating that are
producing products of English biscuit manufacturers.
One factory which is located in the metropolis of Karachi which is
producing most of the non-cream products of the company

The other factory is located in the Khyper Pakhtunkhwa Province in the


northwest of the country and it produces cream based products
The one in Karachi serves all the surrounding areas from the
southernmost tip of Pakistan all the way to somewhere around the
boundaries of Punjab.
The other factory is located in the Hattar region of the KPK province of
Pakistan and due to its location, generally serves the northern side of the
country
Plant Layout
The factory has around five working production lines where biscuits are
manufactured
Two to three of these five production lines are setup to produce the best
selling biscuit brand in the country, Sooper, and are often working 24 hours
a day.

The remaining production lines are used to produce the other brands the
company owns and manufactures such as gluco biscuits, marie biscuits, and
farmhouse cookies.
These machines are extensively managed and very well maintained so that
the maximum life can be obtained out of them over the course of their
lifetimes. The machines are of European origin with many German and
Italian manufacturers being seen quite often.
The physical layout is a step by step process where the biscuits go through each
process one by one progressively changing and being transformed into finished
goods.
The layout of the factory itself is structured in a way such that the production
floor is where all the production takes place, and it has various piping and fittings
that transport the raw materials from one place to another, usually from the raw
material storage facility all the way to the production floor where it gets used up
The raw material storage facility often has a temperature controlling feature
built into it which can cool the chamber as per the requirements of the raw
material
The butter in particular requires much cooling in order to stay usable, and the
milk also requires a certain temperature in order to not spoil.
EBM also holds a record for having an 80 meter long production line situated
in the factory where biscuits are manufactured beginning to end.
Distribution Network
The company stated that the biggest strength they have in terms of the
logistics and supply is their vast distribution network
The primary mode of transportation is trucking for EBM, however
sometimes railway is used in some cases as well
They work with over 500 distributors nation wide and make sure their
products are reaching every single shelf
EBM has systems in place where they are immediately notified either
by the distributors or by the company’s stock keeping units themselves,
and the company acts incredibly fast in dispatching the required number
of units as soon as possible
Warehousing
The warehousing needs of English biscuit manufacturers is quite huge
They require a number of warehouses with a lot of space to store said products.
With production touching 190,000 tons a year and it also taking up a lot of space, the warehousing cost is
quite high for EBM.

They have a policy where they do not manufacture nor store excess products, biscuits are pumped out of the
factory at an efficient pace but they do not go overdrive on the production & make sure it is just enough to
keep the demand flowing., resulting in the reduction in warehousing costs of the company
They have 10 different sales regions which are located in strategic districts to reduce lead time and delivery
costs.
The cost of delivery and warehousing would otherwise be staggeringly high
The warehousing is handled directly by EBM, however the warehouses themselves are rented.
The production facilities also have their own warehousing units built in that hold the products right before
they are shipped off.
he products held at the production facility warehouse are not kept there for too long, and are soon dispatched
either to the warehouse, or the distribution center.
Trucks come periodically to the facility and are always picking up more and more stock of the product to
start its journey all the way to the mouth of the consumer.
Employment & HR Policies/Corporate Structures
The departmental cooperation is extremely important in order to ensure business success. EBM is no
different, and this hierarchy indeed does exist in EBM.
The managers often make sure the cooperation of their teams with other teams go as smoothly as possible.

It allows its employees some degree of flexibility which makes them feel better about their work and the
organization also allows them some degree of independence when making their decisions in day to day
work
Plans are formulated where there exist reporting chains, and the manager manages all of this then reports
it to the HOD.
The HODs say that the beauty of the organization is that they give employees independence and this gives
them motivation to work.
The other goal is to make sure the employees feel heard, a culture of actively listening and understanding
what the employee says.
Transparency is a huge part of the policies of EBM’s work culture. It is generally accepted that employees
are very transparent with their superiors and their line managers.
The HODs manage their teams like a leader, and tasks are allocated to each employee based on what they
are capable of and what they are good at.
Inventory Management
Inventory is indeed held by EBM, however it is held in very limited numbers and the
company does not hold too much excess inventory.
They have inventory ratios in place using which they compute what to hold.
They have a policy to hold as little inventory as possible in excess and the excess they
do hold is because of possible fluctuations in the market which may occur.
For example: If they are holding seven days’ worth of stock they might have plus
minus a day or two in excess, or if their stock gets lower than the aforementioned ratio
then they produce more and store enough to have it occupy space but not too much
space.
This is another way of efficient supply chains keeping costs low. Inventory is also
audited quite often, and it results in a strong system of information on everything.
Batch Management
Products as per usual standards are prepared in batches so that they can be
managed easier.
The batch management takes place via strict data entry and organization of
every little piece of info.

When products are produced in a batch, it is easier to find flaws and any
defects that may occur can be traced back to the origins of the product itself.
This makes it easier to identify expiry dates, easier to manage the inflow
and outflow of stock, which stock to send out first.
If we pick up a pack of Sooper biscuits, we will be able to scan it into the
SKU system and it will reveal on which date it was made, where it was made,
and when it was completed. This also helps with the auditing of inventory.
Shelf Life Management

The shelf life of the products of EBM is as per the industry standard with all forms of safety certifications
involved (listed at the end).
The company keeps the consumer in mind while determining how much shelf life to give to a product.
They are already giving out around 9 to 12 months of shelf life so that consumers can enjoy the product for a
longer period of time.
They are approved by international safety rating organizations which evaluate the safety of consumables.
Labor Intensive or Capital Intensive
 The manufacturing process of EBM can neither be classified as labor
intensive nor capital intensive.
 It utilizes machinery and is not all handiwork, and neither is it
completely automated.

 The machines thus are semi-automated and a mixture of handiwork as


well as automatic processes are utilized.
 The processes include the packaging of products, removal of products
from the assembly lines, putting them in cartons, operating the
machinery, monitoring quality with a human eye, and reducing the risk
of a machine fault.
 Machines play a role in the speed whereas the labor plays a role in the
end processes.
Supply Chain Management
At EBM, their saying is that in the modern day, everybody has access to everything. Fact
of the matter is that everyone has access to every supplier more or less due to it being the
age of information. The suppliers are all available to every manufacturer, what makes the
difference is the value that can be added to the raw material and what can they create out
of the materials available to them.
An example of this would be that a local shop and Armani have access to the same
suppliers, any goods provider can get material from nearly any supplier, however the suit
Armani produces will be vastly different from the suit a local shop creates even though the
cotton might be the same. You get one thing, it is up to the company what they can
transform it into.
Outsourcing
Outsourcing refers to giving away the non-core parts of the business to another
business to perform while we focus on the actual bread and butter of the business.
outsourcing is becoming more and more prevalent these days and has become an
effective strategy for businesses.
EBM holds the belief that this is indeed a viable strategy and they do indeed
outsource some parts of their business to other companies which are non-core and
relatively not as essential such as the IT work on their website.
However they also believe that the company’s core manufacturing processes should
be handled by the company itself to focus more on the quality of the manufactured
products.
Their belief is that core business should not be outsourced and that the main aspects
of the business need to be under the direct control of the company.
Vertical & Horizontal Integration
 The company has ensured that all the material it receives from
behind it in the supply chain is up to the standards of the company
and makes sure that everything it receives can be used in its
products, and will produce products that it can stand behind with
confidence.

 However, the company has not yet acquired another company in a


major way that is before or after them in the supply chain, and it
instead focuses on improving its own core business rather than
integration.
 There are definitely checks and balances involved in the supply of
raw material, packaging and other goods but the material is coming
from an independent company nonetheless which is under contract
with them.
Seasonal Effects
 The brand does not experience much fluctuation in sales with regards to
season.
 All the brands that EBM operates function on a basis of daily
consumption hence are not very effected by the changing of the season.
 However because the brand is operating in Pakistan which is a majority
Muslim country, the brand does experience fluctuations in sales during
the months of Ramadan.
 This is however, not very major of an effect enough to really impact the
brand as a whole.
 Thus the brand is largely the same throughout the year however
fluctuation in sales may arrive due to factors that are not exactly related
to the brand such as retailer stockings and catastrophes such as flood
and earthquakes which will impact the entire supply chain as a whole.
Inventory Audit

The inventory Audit of EBM is internal and external thus done regularly, daily
and yearly.
The audit is done to tally it on systems and on their records, can be physically or
through their systems.
Certifications

 EBM with huge market share and years quality and loyalty experience with their
consumers because they are there family and EBM provides healthy products to their
consumers.
EBM in a muslim country has also managed their all products and are all made with
halal ingredients with certification, only EBM has achieved internationally recognized
their credentials with HACCP and
 ISO 9001:2000
 ISO14001:2004
 ISO27001

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