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Indian Spice Industry Growth Insights

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Topics covered

  • product innovation,
  • consumer trends,
  • competitive analysis,
  • production processes,
  • market growth,
  • consumer behavior,
  • SWOT analysis,
  • investment opportunities,
  • human resources,
  • customer relationship manageme…
0% found this document useful (0 votes)
61 views41 pages

Indian Spice Industry Growth Insights

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Topics covered

  • product innovation,
  • consumer trends,
  • competitive analysis,
  • production processes,
  • market growth,
  • consumer behavior,
  • SWOT analysis,
  • investment opportunities,
  • human resources,
  • customer relationship manageme…

CHAPTER – I

INDUSTRY PROFILE

1.1 INDUSTRY SCENARIO ;

The Indian food industry is poised for huge growth, increasing its contribution to
world food trade every year. In India, the food sector has emerged as a high-growth and high-
profit sector due to its immense potential for value addition, particularly within the food
processing industry. Accounting for about 32 percent of the country's total food market, The
Government of India has been instrumental in the growth and development of the food
processing industry. The government through the Ministry of Food Processing Industries (Mo
FPI) is making all efforts to encourage investments in the business. It has approved proposals
for joint ventures(JV), foreign collaborations, industrial licenses, and 100 percent export
oriented units.

Spices play an important role in enhancing the flavour and taste of the processed foods.
In addition, medicine industry is a major consumer of spices. Spice shall mean or to be
applied to any dried, fragrant, aromatic or pungent, edible vegetable or plant substance, in the
whole, broken or ground form, which contributes flavor; whose primary function in food is
seasoning rather than nutrition, and which may contribute relish or piquancy to foods or
beverages that is true to name, and from which no portion of any volatile oil or other
flavoring principle has been purposely removed, or which no additive or spent spice has been
added. Spices may be either the bark, buds, bulbs, flowers, fruit, leaves, rhizome, roots,
seeds, stigmas and styles or the entire plant tops Spices have been an integral part of the
Indian diet, and the demand for spices has been growing year after year. India has certain
natural comparative advantages with respect to production and utilization of spices; these
include diverse Agro-climatic production environments, availability of innumerable varieties
and cultivars of each spice suitable for different climatic conditions, cheap labor, large
domestic market and a strong tradition of using spices and their products in food, medicine
and cosmetics.

1
1.2 GOVERNMENT INITIATIVE

India the largest producer, consumer, and exporter of spices in the world. India,
known as the home of spices, boasts a long history of trading with the ancient civilizations of
Rome and China. Today, Indian spices are the most sought-after globally, given their
exquisite aroma, texture, taste and medicinal value. India has the largest domestic market for
spices in the world. Traditionally, spices in India have been grown in small land holdings,
with organic farming gaining prominence in recent times.

The global demand for a variety of spices has continued to rise in the past few years
owing to the vast rise in the consumption of convenience foods, snacks, and confectionary.
The widened market for processed and ready-to-eat food products has also had a vast positive
impact on the overall global consumption of a variety of spice.

The global market for spices has witnessed continued demand during the last few
years and is estimated to reach 83,468 kilo tons by 2022, at a CAGR of 2.84% from 2016 to
2022. Increase in versatile demand across various food and beverage segments particularly
for convenience foods and beverages is likely to drive the global spices market during
forecast period 2016 to 2022. On the basis of product type, the global spice market can be
segmented into cardamom, pepper, cumin, clove, and ginger. On the basis of application, the
market can be segmented into sauces, soups, frozen food, meat, convenience foods, poultry
food, and bakery

The mounting growth rate of flavour enhancers in developing countries is causing an


increased demand for sauces, dips, spices, and others. This has uplifted the demand for
condiments in the food & beverage industry. Moreover, the convenience packed food
products have demanded an improved condiments product line, which has positively
impacted the market growth of condiments.

2
Furthermore, R&D investments have led to new product launches in the range which
has further added fuel to the gowth of this market. Additionally, improvement in the
production process and development of improved products from major key players are
expected to support the growth of the global condiments market during the forecast period,
[Link] increasing sale of Condiments is driven by its diverse application across the
foodindustries.

The rich flavour imparted by the condiments to the food preparations is considered
a major driver for the product. Technology developments in developed regions has led to the
innovation in flavours along with increasing the shelf-life of the Condiments which has
supported its sale globally.

High focus on research and development sector of the foodindustries has influenced the
positive growth rate of the market. The consumption of Condiments is found to be high in
Europe and is evaluated to increase at a positive growth rate in various countries of North
America and Asia-Pacific region. Some of the major initiatives taken by the Government of
India to improve the food processing sector in India are as follows:

 The Government of India aims to boost growth in the food processing sector by
leveraging reforms such as 100 per cent foreign direct investment (FD) in marketing
of food products and various incentives at central and state government level along
with a strong focus on supply chain infrastructure.
 In Union Budget 2017-18, the Government of India has set up a dairy processing in
fund worth Rs 8,000 crore (US$ 1.2 billion).
 The Government of India has relaxed foreign direct investment (FDI) norms for the
sector, allowing up to 100 per cent FDI in food product e-commerce automatic.
 Major drivers of demand include increased urbanization, growing home decoration
and renovation, rising disposable incomes, changes in lifestyle and consumer
preferences post-COVID, rise in e-commerce, among others. Despite its gradual
growth, India continues to lag in furniture exports and is currently ranked 16th in the
global market.

3
1.3 Future of the industry:

Going forward, the adoption of food safety and quality assurance mechanisms such as
Total Quality Management (TQM) including ISO 9000. ISO 22000, Hazard Analysis and
Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic
Practices (GHP) by the food processing industry offers several benefits. It would enable
adherence to stringent quality and hygiene norms and thereby protect consumer health,
prepare the industry to face global competition, enhance product acceptance by overseas
buyers and keep the industry technologically abreast of international best practices.

Changes to attitudes and lifestyles are also shaping the future of the spice industry.
As consumers pluce a greater priority on sustainability and quality. the demand for
organic spices is growing. The global market is expected to increase by 5% a year to reach
$368m by 2025.

1.4 Global Scenario:

The Indian Spice Market on a global and regional level. The research report presents a
comprehensive valuation of the market, competition, opportunities, emerging trends and
industry-validated market figures. The study provides historic data of 20 16 to 2018 along
with a forecast from 2019 to 2026 based on volume (Million Tons) and revenue (USD
Million). The Indian spice market has numerous opportunities to nurture across globe in the
upcoming future and is expected to grow at a single digit CAGR within the forecast period.

According to International Organization lor Standardization, around 109 spices are


produced in different part of the world out of which 75 listed spices are produced by India.
India is the one of the largest producers baving variety of spices ranging from garlic,
turmeric, chili, pepper, cardamom, ginger, coriander and many more.

4
The government(Spices Board of India) is also propclling aggressively to export the
Indian spices so as to gain the market share and market value prominently with the help of
promotions and brandings during international fairs. Around 1.08 billion kgs of total spices
have been exported by India during the 2017-2018 year, which valued approximately USD
3.11 billion.

The Indian spice market has been segmented on the basis of degree of taste and plant
organs. Based on degree of taste, Indian spice market is classified as hot spices, mild spices,
aromatic spices, herbs and aromatic vegetables. The hot spices are further segmented into
pepper, ginger and chili. The mild spices are further segmented into coriander and paprika.
Herbs are further segmented into basil, thyme and bay. Aromatic vegetables further
segmented into garlic, onion and shallot. Based on plant organs, Indian spice market is
classified as seed as spice, leaf as spice, flower as spice, fruit as spice, root as spice and bark
as spice. The Indian spices are used as storage pesticide and also for medicinal purpose.
Andhra Pradesh is likely to have highest spice production state in India. The most common
spice produced throughout India is chilies.

1.5 MARKET SIZE


The Indian spice market has immense potential to expand owing to technological
advancement and R&D. Establishment of quality evaluation laboratories; infrastructural
facilities provided by the Spices Board of India and consumer interest which has shifted from
artificial to natural flavors are the crucial factors which are driving this market. Due to

technological advancement, the producers are able to offer premium quality spices
across globe. The opportunity of Indian spice market in terms of applications is just not
restricted to flavouring, seasoning, pungency and colouring. For food preservation, Indian
spices can be used owing to dual function i.e. antimicrobial and antioxidant properties.
Cosmetics industry is one of the applications of Indian spice market. For manufacturing soaps
and tooth pastes spices are used. Owing to various applications, the market has potential
growth within the forecasted year.

5
Some of the factors which might to hamper the Indian spice markets are insufficient
legal provisions, inadequate surplus for export, lesser product quality as well as quantity. One
of the crucial problems faced by the Indian Spice industry is low productivity in the spice
sector. To cater these factors and bolster the growth, the key players are doing various
technological advancement and R&D in order to support the growth of the market in the
upcoming period. Key players opearting in the Indian spice market are Everest Spices, MDH,
Eastern Condiments, Catch and MTR.

1.6 INDIA MARKET ACCESS:

 The Indian food and grocery market is the world's sixth largest, with retail contribute
70 per cent of the sales. The Indian food processing industry accounts for 32 per cent
of total food market.
 one of the largest industries in India and is ranked fifth in terms of production,
consumption, export and expected growth.
 It contributes around 8.80 and 8.39 percent of Gross Value Added (GVA) in
Manufacturing and Agriculture respectively, 13 per cent of India's exports and six per
cent of total industrial investment.
 The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing
at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food
market is expected to increase by three times by 2020.
 The online food ordering business in India is in its nascent stage, but witnessing
exponential growth. With online food delivery players like Food Panda, GDPA, Tiny
Owl and Swiggy building scale through partnerships, the organised food business has
a huge potential and a promising future.
 The online food delivery industry grew at 150 per cent year-on-year with an
estimated Gross Merchandise Value (GMV) of USS 300 million in 2016.

6
CHAPTER -II

GENERAL PROFILE

2.1 INTRODECTION

Gdpa Foods Private Limited is a Non-govt company, incorporated on 06 Jul, 1995.


It's a private unlisted company and is classified as'company limited by shares'.

Company's authorized capital stands at Rs 45.0 lakhs and has 91.888885% paid-up
capital which is Rs 41.35 lakhs.

Gdpa Foods Private Limited is in the business from last 29 years and currently,
company operations are strike off. Current board members & directors are GOPALSAMY
DURAISAMY and ARUMUGAM CHINNASAMY .

Company is registered in Coimbatore (Tamil Nadu) Registrar Office. Gdpa Foods


Private Limited registered address is 277A, ALAGESAN ROAD,SAIBABA MISSION
POST, SAIBABA MISSION POST COIMBATORE TN 641011 IN.

Gdpa Foods Private Limited is a private limited company based in Coimbatore, India
The corporate identification number (CIN) of this company as per the official records is
U01549TZ1995PTC006316 and the company registration number is 006316.

Gdpa Foods Private Limited is a manufacturer company with the industrial and NIC /
SIC code of 01549 as per the official records.. The company's business is based in the city of
Coimbatore. The company is duly registered at Registrar of Companies, Coimbatore (RoC-
Coimbatore)

7
2.2 COMPANY PROFILE

GDPA

CIN ; UO1549TZ1995PTC006316

Company Name ; GDPA FOOD PRIVATE LIMITED

Company Status ; Active

ROC ; COIMBATORE

Registration Number ; 6316

Company Category ; Company limited by Shares

Company Sub Category ; - Non-govt company

Class of Company ; Private

Date of Incorporation ; 06 July 1995

Industry ; Spices

8
2.3 OPJECTIVE &VISION & MISSION& VALUE

2.3.1 Objectives:

The basic objective of the concept is to provide common infrastructure facilities for
both post-harvest and processing operations of spices and spice products, which also aims at
backward integration by providing rural employment.

2.3.2 Vision:

 To be globally food processing company enriching lives with Innovation, Integrity


and superiority.
 To lead the industry in technological innovation, developing production techniques to
achieve sustainable efficiency.
 To leverage knowledge and efficiency through global group scale.
 To lead the industry in technological innovation, developing production techniques to
achieve sustainable efficiency.
 Our vision is to be the market leader in the design, distribution and implementation of
industrial automation system.

2.3.3 Mission:

 We grow and sell quality, fresh seasoning products that simplify and enhance the
consumer cooking experience.
 We grow the highest-quality products in the herb and lettuce market segment in our
greenhouses around India.
 We aim to drive the fresh seasoning category and introduce new products and
packaging.
 With the help of our team work and dedication, we thrive to provide a quality oriented
service to our clients and customers

9
2.3.4 Values:

 Sustainability & Value


 Passionate Value
 Strong financial performance
 Quality & Exceptional practice
 Supplier & customer partnerships

2.4 Products and Services Offered:

The conpany has exported spices and powered spices through the other countries
based on orders received, The unit has already been registered with "Spices Board" as
exporter of species. The publication of the board such as spice India, spices market, Foreign
bulletins are being received regularly to enable to keep track on arrivals of local rates, export,
price, global trend of the market quantum of export, quality requirements of buying countries
name and address of foreign buyers etc are maintained.

It has also been decided to secure spice house certificate from spice board. This
certificate is issued to those man who maintain high degree of cleanliness and hygiene. It is
also proposed to obtain spices logo from spices board

The Ministry of Food Processing Industries announced a scheme for Human Resource
Development (HRD) in the food processing sector. The HRD scheme is being implemented
through State Governments under the National Mission on Food Processing. The scheme has
the following four components:

 Entrepreneurship Development Programme (EDP)


 Food Processing Training Centres (FPTC)
 Training at recognised institutions at State National level

10
2.4.1 Whole Spices:

 TURMERIC BULB

 CRUSHED CHILLY

 CORIANDER SEED

 DRIED CHILLY WITHOUT STEM

 DRIED CILLY WITH STEM

 MUSTARD SEED

 FENUGREEK

2.4.2 Powered spices:

 TURMERIC POVWDER

 CHILLY POWDER

 CORIANDER POWDER

 CUMIN POWDER

 BLACK PEPPER POWDER

 A Construction mild steel bar

11
2.5 BCG Matrix:

2.5.1 Relative Market Share

The creator of the BCG Matrix used this variable to actually measure a company's
competitiveness. The exact measure for Relative Market Share is the focal company's share
relative to its largest competitor.

That the focal company should at least have a similar market share as its largest
competitor in order to have a high relative market share. The assumption in this framework is
that an increase in relative market share will result in an increase in the generation of cash,
since the focal company benefits from economies of scales and thus gains a cost advantage
relative to its competitor.

2.5.2 Market Growth Rate

The second variable is the Market Growth Rate, which is used to measure the market
attractiveness. Rapidly growing markets are what organizations usually strive for, since they
are promising for interesting returns on investments in the long term. The drawback however
is that companies in growing markets are likely to be in need for investments in order to
make growth possible. The investments are for example needed to fund marketing campaigns
or to increase capacity. High or low growth rates can vary from industry to industry, but the
cut-off point in general usually chosen around 10 percent per annum. This means that if
GDPA would be operating in an industry where the market is growing 6 percent a year on
average, the market growth rate would be considered high. The company are in CASH
COWS position.

12
2.5.3 Expand distribution reach:

GDPA intends to continue to invest in technology to improve its operational


efficiencies, increase customer satislaction and improve its sales and profitability. It will
focuson optimizing and automating its production processes to improve returns in a rapidly
changing technological environment. It aims to identify opportunities to implement
production improvements and will dedicate R&D resources to enhance its production
processes.

GDPA will also focns on introducing and implementing technology to aid it in its supply
chain management to ensure high quality, low costs and on time delivery for its customers. It
will continue to automate its production processes through initiatives such as ASRS and auto
replenishment modules to help lower its inventory levels, increase inventory turnover cycle
and better manage the inventory levels at its authorized distributors and dealers. Once
implemented effectively, it expects these initiatives to improve profit margins as well as those
of its authorized distributors and dealers. In addition, it will continue to expand its R&D
capabilities to capitalize on emerging trends such as energy efficiency.

2.5.4 Enhance and strengthen leadership position in spices industry:

It intends to enhance, maintain and strengthen its leadership position in the spices
market in India by growing its share of business with existing customers, winning new
customer contracts, geographical expansion and development of innovative and customized
products.

GDPA seeks to expand its customer base and utilize its research and development
capabilities to develop new and innovative products,

13
2.6-7S Framework:

2.6.1 Hard elements


The hard elements of the McKinsey 7s model comprise of strategy, structure, and
systems. The hard elements of the model are easier to identify, more tangible in nature, and
directly controlled and influenced by the leadersbip and management of the organization

2.6.2 Strategy
The strategic direction and the overall business strategy for GDPA Economic Value
Added Analysis are clearly defined and communicated to all the employees and stakeholders.
This helps the organization manage performance, guide actions, and devise different tactics
that are aligned with the business strategy. Moreover, the business strategy's definition and
communication also make operations for GDPA Economic Value Added Analysis more
transparent and aligns the responsibilities and actions of the company.

2.6.3 Competitive pressures

GDPA Economic Value Added Analysis's strategy also takes into consideration the
competitive pressures and activities of competitors. The strategy addresses these competitive
pressures through suggestive measures and actions to address competition via strategic tactics
and activities that ensure sustainability to GDPA Economic Value Added Analysis via
adapting to market changes, and evolving consumer trends and demands. Changing consumer
demands An important aspect of the strategy at GDPA Economic Value Added Analysis is
that it take into constant consideration the changing consumer trends and demands, as well as
the evolving consumer market patterns and consumption behaviour. This is an important part
of the strategic direction at GDPA Economic Value Added Analysis as it allows the company
to remain competitive and relevant to its target consumer groups, as well as allows the
company to identify demand gaps in the Consumer market. The company then strategically
addresses these gaps through product offerings and marketing activities which give the
company successful and leading-edge over other patterns in the market.

14
2.7 MARKET VIWE

2.1 Structure

1) Organizational hierarchy

GDPA Economic Value Added Analysis has a flatter organizational hierarchy that is
supported by learning and progressive organizations. With lesser managerial levels in
between and more access to the senior management and leadership, the employees feel more
secure and confident and also have higher access to information. Moreover, the flatter
hierarchy also allows quicker decision-making processes for GDPA Economic Value Added
Analysis and increases organizational commitment in the employees,

2) Inter-Departmental coordination

GDPA Economic Value Added Analysis has high coordination between different
departments. The company's departments often form inter-department teams for projects and
tasks that require multiple expertise. All coordination between different departments is
effective and organized. GDPA Economic Value Added Analysis has a systematic process
for initiating and monitoring coordination between departments to ensure smooth work
operations and processes - and goal attainment.

3) Internal team dynamics [department specific]

GDPA Economic Value Added Analysis encourages teamwork and team-oriented


tasks. Where jobs require individual attention and scope, the company also assigns individual
responsibilities and job tasks. However, all employees at GDPA Economic Value Added
Analysis are expected to be tcam players who can work well with and through other
members. and who get along well with other people. The teams at GDPA Economic Value
Added Analysis are supportive of all embers and work in synch.

15
4) Centralization vs. decentralization

GDPA Economic Value Added Analysis has a hybrid structure between centralization
and decentralization. Like many progressive organizations, GDPA Economic Value Added
Analysis largely supports decentralized decision making. Job roles at GDPA Economic Value
Added Analysis are designed to be carried out with responsibility, and employees often set
their goals with mutual coordination and understanding with the supervisors. However,
GDPA Economic Value Added Analysis is also centralized in making sure that supervisors
oversee, and approve of the various efforts, and tactics that employees choose to ensure that
they are aligned with the organizational strategy ad values.

5) Communication

GDPA conomic Value Added Analysis has a developed and intricate system for
ensuring communication between employees, and different managerial levels. The
communication systems at GDPA Economic Value Added Analysis enhance the overall
organizational structure. The systematic, defined, and organized communication allows an
easy flow of information and ensures that no organizational tasks and goals .

2.7.2 System

1) Organizational systems in place

GDPA Economic Value Added Analysis has defined and well-demarcated systems in
place to ensure that the business operations are managed effectively and that there are no
conflicts or disputes. The systems at GDPA Economic Value Added Analysis are largely
departmental in nature, and include, for example:
 Human resource management
 Finance
 Marketing
 Operation
16
2) Defined controls for systems

Each of the defined and demarcated systems at GDPA Economic Value Added
Analysis has especially designed tools and methods as controls for evaluating performance
and goal attainment. These controls and measures are designed specifically in different
departments based on the nature of their tasks and responsibilities. Morcover, each
department also designs specific controls for members for performance evaluation, as well as
for inter-departmental tasks and responsibilities,

3) Monitoring and evaluating controls

GDPA Economic Value Added Analysis continually evaluates its systems through the
designed controls. This monitoring of the performance is continual and ongoing. This is
largely done through observation and informal discussions. Feedback to employees and
overall department heads is informally given regularly as and when is required. Formal
evaluation of performance is also conducted semi annually or quarterly, depending on the
need and the urgency of the projects and assigned tasks. This is a formal process that is
undertaken by supervisors and managers to ensure the identification of performance lags, and
suggestive means of improvement.

4) Internal processes for organizational alignment

GDPA Economic Value Added Analysis also has special processes and methods for
ensuring that all departments and systems within the organization are aligned and working in
harmony towards the greater business goals and targets. This is made possible through
ensuring that all systems are designing and working towards goals and targets specific to their
expertise under the broader business vision and strategy. Moreover, the strategic leadership at
GDPA Economic Value Added Analysis also ensures that all systems are allocated with
resources, and set specific targets to achieve similar business goals in any specific period.

17
5) Soft Elements

The soft elements of the McKinsey 7s model, in turn, include shared values, staff,
skills, and strategy. These elements are less tangible in nature and are more influenced by the
organizational culture. As such, the management does not have direct influence or control
over them. These elements are also harder to describe and directly identify - but are equally
important for an organization's success and improved performance,

2.7.3 Shared values

1) Core values

The core values at GDPA Economic Value Added Analysis are defined and
communicated to foster a creative and supportive organizational structure that will allow
employees to perform optimally, and enhance their motivation and organizational
commitment. The core values at GDPA Economic Value Added Analysis include, but are not
limited to:

 Creativity
 Honesty
 Transparency
 Accountability
 Trust
 Quality
 Heritage

The GDPA Economic Value Added Analysis business also ensures that all its activities
and operations are conducted with high ethical and moral standards that redefined and
benchmarked against international criteria.

18
2) Corporate culture

GDPA Economic Value Added Analysis encourages an inclusive culture that


celebrates diversity. The company has an international presence, and production units that are
spread across different countries, as such, GDPA Economic Value Added Analysis ensure
that its organizational culture is supportive of diversity, and has internal policies to reduce
incidences of discrimination.

The corporate culture at GDPA Economic Value Added Analysis also encourages
innovation and creativity by allowing independence for growth to individuals and teams -thus
helping them refine their careers as well as personalities. Lastly, the corporate culture at
GDPA Economic Value Added Analysis also has a supportive leadership which works
towards increasing employee motivation and job satisfacion by giving way to visibility and
accessibility.

3) TASK ALIGNMENT WITH VALUES

GDPA Economic Value Added Analysis ensures that all its job tasks and roles are
aligned with the core values that the company propagates. This means that all activities,
tactics, and strategic tactics employed by GDPA Economic Value Added Analysis will reflect
its core values, and will not deviate away from these. This is to ensure a consistent, and
reliable brand image, as well as an honest organizational culture. In the event of
organizational change, the company will continue to cnsure that all chanmge management
processes and methods incorporate the core values so that the organizational culture is
consistently maintained.

systematically changed if need be, Welding is one of the most popular metal furniture
manufacturing techniques, as it offers a range of benefits. This process involves using heat to
join two pieces of metal together and can be used to create a variety of metal furniture pieces,
including tables, chairs, and cabinets. Welding is a relatively fast and cost-effective technique
and it also offers a high degree of precision. However, welds can be difficult to repair and
welding can be hazardous due to the presence of fumes.

19
2.7.4 Style

1) Managemnent/leadership style
GDPA Economic Value Added Analysis has a participative leadership style. Through
a participative leadership style, GDPA Economic Value Added Analysis is able to engage
and involve its employees in decision-making processes and managerial decisions. This also
allows the leadership to regularly interact with the employees and different managerial
groups to identify any potential conflicts for resolution, as well as for feedback regarding
strategic tactics and operations. Through its participative leadership, GDPA Economic Value
Added Analysis is able to enhance employee motivation, and increase organizational
commitment and ownership amongst employees as well as other stakeholders.

2) Effectiveness of leadership style

The participative leadership style is highly effective in achieving the business gols
and vision of the organization. Employees feel to be active members of the organization who
are valued for their suggestions, feedback, and input. Moreover, through participative
leadership, leaders and managers are able to identify current and potential conflicts within the
GDPA Economic Value Added Analysis organization, and actively work to resolve them as
soon as possible,

3) Cooperation vs competition - internally

With its supportive and encouraging organizational culture, GDPA Economic Value
Added Analysis gives way to internal collaboration and cooperation between employees,
systems, teams, and departments. This cooperation and collaboration at GDPA Economic
Value Added Analysis is important since its operations are spread globally, and also because
tasks and responsibilities within the company often require inter-departmental feedback and
input. Moreover, with increased expansion, and synergy, the business also regularly forms
project teams which function effeetively because of the cooperative and collaborative culture
within the GDPA Economie Value Added Analysis organization.

20
4) Team vs groups

GDPA Economic Value Added Analysis has effective and functional teams and work
with them internally to achieve its various business goals and objectives, and complete tasks.
The company's management is encouraging and supportive, and the leadership provides a
motivating and pragmatic vision toad achieve. The human resource management system, as
well as the organizational training, supports all employees in their growth

2.7.5 Staff

1) Employee skill level vs business goals


GDPA Economic Value Added Analysis has a sufficient number of employees
employed across its global operations. Employees for different job roles and positions are
hired internally as well as externally - depending on the urgency and the skill levels required.
Based on this, it is seen that GDPA Economic Value Added Analysis has employees who are
skilled as per the requirements of their job roles and positions. All employees are given in
house training to familiarize themselves with the company and its values. External training
along with in-house training is provided for skill level enhancement. All job roles and
positions are designed to facilitate the achievement of business goals, and as such, employee
skill level at GDPA Economic Value Added Analysis is sufficient to achieve the business
goals of the company.

2) Number of employees

GDPA Economic Value Added Analysis has employed a large number of employees.
The number of employees varies from country to country as per the requirements and needs
of the business and operations. The global team of GDPA Economic Value Added Analysis
is an inclusive one that accepts, and encourages diversity, and works in synchronization with
members to ensure attainment of business goals. The team member sand emplovees are the
most important part of business suCcess for GDPA Economic Value Added Analvsis

21
3) Gaps in required capabilities and capacities

GDPA Economic Value Added Analysis has a well-defined system for identifying
potential needs of capabilities and capacities for the organization. The human resource
function of the business has a systematic process that aligns all other departments to identify
potential vacancies or skill gaps. Based on the nature of the need, the human resource
department arranges for recruitments which may be permanent or contractual in nature, as
well as arranges training sessions if need be for the current workforce.

2.7.6 Skills
1)Employee skills

GDPA Economic Value Added Analysis has a commendable workforce, with high
skills and capacities. All employees are recruited based on their merit and qualifications.
GDPA Economic Value Added Analysis prides itself on hiring the best professionals and
grooming them further to facilitate growth and development.

2) Employee skills vs task requirements

GDPA Economic Value Added Analysis has defined tasks and job roles and hires and
trains employees for skill levels accordingly with respect to those. The company ensures that
all its job requirements are met and that employees have the sufficient skills to perform their
respective jobs in accordance with the values and culture as well as the business goals and
strategy of GDPA Economic Value Added Analysis.

3) Skill management

GDPA Economic Value Added Analysis pays particular attention to enhancing the
skills and capacities of its employees. It arranges regular training and workshops - internally
as well as externally managed- to provide growth and development opportunities for its
employees.

22
2.8 Organization structure:

MANAGING DIRECTOR

HUMAN
FINANCE PURCHASE SALES HUMAN
FINANCIAL PURCHASES SALES RESOURCES
DEPARTMEN T DEPARTMENT DEPARTMENT RESOURCES
DEPARTMENT
DEPARTMENT DEPARTMENT DEPARTMENT
DEPARTMENT

ACCOUNT MARKETING

EXCUTIVE

HEAD OF THE FACTORY

QUAUTY CONTROL STORE PRODECTION HEADS

DEPARTMENT DEPARTMENT

ASSISTANTS WATCHMAN WORKERS

23
2.8.1 Corporate social responsibility:

 Eradicating hunger. poverty and malnutrition, promoting health care and preventive
health care and sanitation (including contribution to Swatch Bharat) and making
available safe and drinking water.

 Promoting education, including special education and employment enhancing


vocation skills especially among children, women, elderly. and the diferent abled and
livelihood enhancement projects.

 Promoting gender quality, empowering women, seting up homes and hostels for
women and orphans; setting up old age homes, day care centre and such other
facilities for senior citizens and measures for reducing inequalities faced by socially
and economically social groups.

 Ensuring environmental sustainability, ecological balance, protection of flora and


fauna, animal welfare, agro forestry, conservation of natural resources and
maintaining quality of the soil, air and water.

 Protection of natural heritage, art and culture including restoration of buildings and
sites of historical importance and works of art, setting up public libraries, promotion
and development of the traditional and handicrafts.

 Measures for the benefit of armed forces veterans, war widows and their dependents.

 Training to promote rural sports, nationally recognized sports, Paralympics sports and
Olympic sports.
1) CSR IMPLEMENTATION

The Company shall undertake CSR activities on its own, to the extent possible.
Undertake CSR activities through a registered trust or a registered society or a company
established under section 8 of the Act or otherwise which satisfies the eligibility criteria.

24
2) CSR FUNDS
The Company shall spend in every financial year, at least two percent of the average
net profits of the company made during the three immediately preceding financial Years
along with unspent money if any of the previous year-

3) Flexibility and adaptability


The strategy at GDPA Economic Value Added Analysis is flexible and adaptable.
This is an important aspect of the strategic direction, and strategy setting at GDPA Economic
Value Added Analysis. Rigidity in strategy leads a company and a business to often become
stagnant and obstructs advancement, and progression with evolving changes in the consumer
markets. With flexibility and adaptability, the GDPA Economic Value Added Analysis not
only able to benefit from quickly reacting and responding to changing consumer patterns
globally, but is also able to locally and culturally adapt its products via localization for
different countries and regions. Moreover, the company often able to proactively predict
consumer market changes, and devise strategic changes accordingly to meet the market
trends.

4) Guiding behaviour for goal attainment


The strategic direction for GDPA Economic Value Added Analysis is also important
in helping the business guide employee, staff, and stakeholder behaviour towards the
attainment and achievement of goals. SMART Goals are set with short and long term
deadlines in accordance with the business strategy. The business strategy helps employees
decide tactics and behaviours for attaining the set goals and targets to help the business grow.

Casting is another popular metal furniture manufacturing technique. This


process involves pouring molten metal into a mold, which is then cooled and solidified.
Casting is used to create furniture with intricate details and is also relatively cost-effective.
However, the process can be time-consuming and can require specialized
[Link], woodworking requires a great deal of skill and experience, which
can lead to mistakes and errors. Finally, woodworking can be a dangerous process, as it
involves the use of sharp tools and machinery.

25
CHAPTER – III

FUNCTIONAL DEPARTMENT

3.1 PRODUCTIONFUNCTION

Purchase means "o obtain ownership of a security or others asset in exchange for
money or value"

Raw material purchased by the company are:


 Garlic
 Bhal
 Camin
 Pepper
 Chilly
 Coriander etr,,,,

The purchase order is taken monthly once at different places,

Activities of purchase department:

 The marketing department collects the orders from the consumers.

 The planning department prepare the list of materials required based on the order.

 The list of materials needed is given to the purchase department. The purchase in-
charge go through the list of materials. If any

 If the material is out of stock, the purchase in-charge will prepare a list of material
that is required and the price list of each material is prepared by him.

26
 The purchase department prepares a comparison chart for the price of the material that
they require, to find where the material is found cheaper.

 After the comparison chart is prepared it is approved & signed by the purchase in-
charge and production manager.

 The order is placed in the party's name, with quantity, price, discount, taxes, etc.

 The indent is maintained in the party's name, quality, price, discount, taxes, etc. The
intent is maintained by the stores. If any material is found out of stock in the stores,
then an indent will be passed to the purchase officer.

 The purchase officer goes through the indent and he goes through the stock which is
completely computerized. If he finds the nil stock he put back the order.

 The purchase officer purchases the material with the help of a purchase boy who goes
to the market for the purchase.

 The order is placed with the order no and date on which the order is placed.

For example

 Red chilies from Andhra Pradesh (Gundoor)

 Turmeric pulp form erode

 Spices from north India

 Pressing

 Drilling

 Machining

27
3.1.2 Production department meaning :

It deals with decision making related to production process. So that the resulting
goods are services are produced according to specification in amounts on by the Schedules
and demand at a minimum cost.

Production function is concerned with creation of product, it reveals rare relationship


process and quantities of different input used in that process.

Production management tells how to produce the goods effectively according to the
present market conditions. It also aims to satisfies the needs of their customers.

Production is the foundation an which every organization is build production is an set


of producing goods of product in an organized manner with the use of men material and
equipments.

Production is in act of transformation (i.e.) inputs are processed & transformed into
Some output.

3.1.3 The main objectives of production department are;

 Optimum use of resources at optimum cost.

 Manufacturing of desired quality of goods and services.

That is the entire process by which steel is formed, If you are creating project out of steel
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28
3.1.4 PROCESS FLOW CHART

Farmcrs

Raw material
Requlated

market Terms of quality pre cleaning Market


vbsun driving grading strong

Agmark

Magnctic separator Roasting


Hammer crusher Hammer crusher
Pulverizing Pulverizing
Magnetic separators Magnetic separator
Cooling & Quality evaluation
Cooling & blending

Quality cvaluation

BACKING

\\\\\\\\\\\\\\\\\\\\\\\
To Export To Merchant cxports To Domestic Market

29
3.1.5 QUALITY CONTROLLED DEPARTMENT:

Quality is the ultimate criterion of the desirability of any other hidden attributes. The
absence of nutertional qualities and possible presence of hazardous microbes, environmental
contaminate food toxins and chemical additives cannot be easy judged by the consumer
regarding.

Nutritional and hidden attributes by stringent controls to assure good quality


enactment\\
of food lavws regarding inspection, grading packing and labelling of food. So the government
of India confirms the quality and they provide the certificate.

Spice board, ministry of commerce govt of India has recognized the factory and
awarded them "Spice logo""Spice house" certificate.

Company has well equipped labouratory, which is awarded AGMARK certificate and
managed by AGMARK trained chemist.

Company also have very good drying yard as per the standards of spices board,

3.1.6 Packing

Packing is the method to cover the manufactured products and it helps in easy
identification and makes easy to carry.

Different tips of packing are used such as rigid, flexible, semi flexible aluminium foil
etc depending upon the product.

In this factory the products are packed in bottles, pet, jar, bag are used. The packing
material are mostly based on buyers choice. All masalas are packed in laminated cover.

30
3.2 Marketing Department:

Marketing as a "Total System" of interacting business activities designed to plan,


price, promote and distribute want satisfying products and distribute want satisfying products
and service to present potential customers

3.2.1 Export

 The unit has already been registered with "Spices Board" as exporter of species. The
publication of the board such as spice India, spices market, Foreign bulletins are being
received regularly to enable to keep track on arrivals of local rates, export, price,
global trend of the market quantum of export, quality requirements of buying
countries name and address of foreign buyers etc are maintained.

 It has also been decided to secure spice house certificate from spice board. This
certificate is issued to those man who maintain high degree of cleanliness and
hygiene. It is also proposed to obtain spices logo from spices board.

 This is quality mark which can be printed on packed goods by those manufacturers
who have a well equipped laboratory which is runned by qualified personnel and
whose processing unit complies with the forms prescribed by spices board for the
purpose. The board is known to promote goods bearing spices logo for export.

 The above organization conducts buyer seller meet in India and abroad and it is
proposed to participate in such meeting as far as possible and augment export. The
unit is got incorporated in the directory of supplier of spices published by spices board
and made available to merchant exporters to facilitates in receiving free enquiries.

 Spicer exporters forum furnishes updated directory of exporters of spices every years.

31
3.2.2 Export documents:

With regard to the exports there are about l6 documents required at pre and post
shipment stages

These documents are again split into commercial documents and regulatory documents.

1) Commercial documnents:

 Pre Shipment Documents


 proforma invoice
 letter of credit
 order
 IDF
 Insurance declaration
 Intimation for inspection.

2) Post Shipment Documents

 Commercial invoice
 Packing list
 Shipping instructions
 Certificate of inspection
 Advance dd/tt
3) Insurance certificate

 Shipping order
 Mate reQceipt
 BL combined transport document Etc..

32
4) Export formalities in GDPA FOOD PRIVATE LTD

There are a number of formalities in GDPA foods (P) Itd has to fulfill before and after
shipping their products these formalities or procedures are as follows.

 Getting the name of the importer


 Give them quotation
 Know the trade terms
 Communicate their acceptance, four rules of export correspondence

(i) be polite (ii) be precise (iii) be prompt (iv) be persist ant.

 Obtain export code number


 Approach their bankers
 Keep the goods ready for dispatch
 Get the goods inspected by IA
 Get shipping space
 Take the help of clearing and forwarding agents
 Get in touch with the port authority
 Prepare/obtain export documents
 Dispatch goods
 Send shipping advice
 Get their export proceeds
 self registered with the concerned export promotion council etc.
 Apply for import license and cash assistance
 Approach the director of draw back
 Know how to calculate export pricing
 Medical facilities
 Water facilities
 Basic & restroom facilities
 Peaceful infrastructure

33
3.3 Finance Department:

Finance is life blood of industrial system it is very basic with out finance neither any
business can be started nor successfully run. Provisions of sufficient funds on the realize of
time is the key success of a concern

 The finance department maintains the accounts of the company


 The finance manager collects all the payments and other accounts.
 The finance manager issues the bills of payment
 Department activities in purchase The finance department will inward the purchase
bill and sent the payment to the seller.
 Department activities in sales
 When the sales are made, the goods are dispatched with the guidance or marketing
manager. The marketing manager asking the finance departıment to prepare bill of
sales. The amount is received by the finance departıment cashier. The cash deposited
in the bank is made use to purchase the materials.
 Activities in the bank
 The finance department maintains bank journal note, where the cheques received and
 issued are noted. The cheque's received every day passed through the bank. The
weekly statements are received 22 by the department from the bank. The statement is
maintained properly.
 Bank stat & financial statements are prepared weekly once and sent to the managing
director for his reference
 The excise duty is also made for one month. The cash should be paid within 15th of
every month & returns should be submitted on 20th of every month.
 The department maintains purchase book, sales book, debit note, credit note, invoice.
 At the end of financial year, balance sheet is prepared to find out the profit & loss of
the company.

34
3.3.1 Receipts & payment account

The amount of receipt and payment included during the period are noted and it helps
to know the gross profit. The company's total receipt and payment are entered first and gross
profit is found out. The amount which is receivable is treated as receipt and entered in debit
side and the amount which is payable is treated as payment and entered in the credit side.

Income and expenditure The amount of income and expenditure are noted. After
entering this transaction the company can find its net profit. The net profit calculation are
treated as the profit entered for the year. The expenses and loses are shown in the expenditure
side. The income and gains are shown in the income side.

3.3.2 Cash accounts

This account deals with cash transactions the cash purchase and sales are noted in this
account. The payments when made in cash will be noted in the cash account.

3.3.3 Bank account

This account is prepared in order to known the deposit and with drawl made by the
company. In this company the transaction are done through the bank. The company purchases
its raw materials for production and pays the amount in cheque. The accounts department
prepares accounts in order to note down the daily transactions.

3.3.4 Balance sheet

Balance sheet is prepared at the end of every assessment year. This is prepared by the
company auditor after checking the accounts which have been submitted by the concern
Identifying , assessing and resolving short- and long-term risks before they become a real
threat. This serves to protect both the employees and the company.

35
3.3.5 Cash book

Cash book is prepared based on the following balance of the preceding year. This
book is mainly divided into two columns. Debit ¬ Credit 24 All cash and bank payments and
cash deposits comes under the credit column,

3.3.6 Purchase journal

purchased raw material, receipts of notes from stores, duly signed by the purchase
management, recorded along with their particulars. Date, name of the supplier, particulars,
invoice number, amount, units, rate etc are included in the book.

3.3.7 Sales journal

The finished goods sent to parties are entered in the book, invoice number name of
customer, units, rate and total amount are included. The accounts are tallied on receipts of
payment from the customer.

3.3.8 Bank book

All the bank transactions relating to the borrowing payments, receipts from customer
are recorded, the payment is recorded on the debit side and all the receipt or income are
recorded in the credit side.

3.3.9 Sales tax

Sales taxes are made for each and every month. The returns must be submitted on
20thvof every month. That is the last date for submission. The contributions of finance
department to any company and how these contributions positively affect organizational
performance will greatly depend on factors such as the extent to which the owner/ manager is
involved in his company.

36
3.4 Human Resource Department:

Human resource management, is that part of the management function which is


cfxcnncconcerned with people at work and with their relation with in an enterprise.

 So its easy to solve the labour problem

 During intervals they provide tea, and biscuits.

 The labours are consent with the industry were they are working

 Quarters facility are provided to the labours.

 Being a food processing industry, it serves as a model for quality control.

 A massive programme which utilizes the un-educated man power of nearby villages.

 It acts as a source of export promotion of similar products.

 Though it have a variety of about 400 items its maintaining a table and affordable
price list.

 The industry serves us as a virtual model of organization which gives a practical


knowledge in both export and production.

3.4.1 Role of sales manager

 To carry the company's brand name to the market. Then actions will reflect on the
image of the company

 To increase the profitability of the company

 Act as liaison between the managenment and the customers.

37
CHAPTER -IV

SWOT ANALYSIS

4.1 SWOT ANALYSIS

SWOT - stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and
weaknesses are internal to your company things that you have some control over and can
change. Examples include who is on your team, your patents and intellectual property, and
your location. Opportunities and threats are external things that are going on outside your
company, in the larger market. You can take advantage of opportunities and protect against
threats, but you can't change them. Examples include competitors, prices of raw materials,
and customer shopping trends.

4.1.1 Strengths –

Strengths are internal, positive attributes of your company. These are things that are
within your control.

 Produces hunger
 Improves health
 Reduces landfill use
 Builds sense of community
 Reduces methane gas
 Generates tax deductions for donor firms
 Reduces food cost for livestock
 Creates some jobs
 Inspires some lower income families to join the workforce Weather

4.1.2 WEAKNESSES ;

 Safety - potential for sickness among people and livestock if donated food not
handled properly
 Safety - workers involved in "gleaning’’ operations could get hurt while working to
recover food
 Negative perception of "old" food (food at or past sell by date), or blemished food
(fruit, vegetables)
 Need a flexible workforce to work varied hours on short notice
 Lack of storage space at donor locations
 Without frequent pick-ups, the system does not work

38
4.1.3 Opportunities:

Opportunities are external factors in your business environment that are likely to
contribute to your success.

 Good internal market


 Expansion facility
 Flexibility in future expansion
 Good distribution network
 General Agreement of trade on Services
 Minimize city costs by partnering
 Receive tax deductions
 Reduced garbage disposal costs (private sector)
 Reduce landfill operations (public sector)
 Create goodwill
 Express creativity in a productive way
 All participants get positive press
 Enhances area's appeal

4.1.4 Threats;

Threats are external factors that you have no control over. You may want to consider
putting in place contingency plans for dealing with them if they occur.

 Global competition
 Availability of raw materials
 Internal market
 Unawareness to local people
 China becoming net exporter
 Protectionism in the West
 Dumping by competitors
 Taxpayer objection
 Liability fears
 Fear of lost revenue by businesses
 Disruptions to the labor force (particularly volunteer).

39
CHAPTER-V

FINDINGS

5.1 SUGGESTIONS:

GDPA can fix a reasonable price so that all segments of people can purchase.
A good strategy can be maintained to create a good rapport with the customers.

They have to do advertisement to attract more number of customers Attractive gifts


can be given for the customer whose purchase is above Rs 1,00,000. The brand which is
preferred by the customers, those products can be made available in huge varieties. Training
can be given to their employees to maintain the quality of the products.

Tofler Company network is a powerful feature that allows you to explore and
discover common directorships between companies. It helps you find out other directorships
of an Indian director and where else he has business interests. The feature is available for
unlimited use in Company360 platform. Here is the video showing how you can explore
company networks to discover hidden relationships between companies.

40
5.2 Conclusion:

To conclude this maintaining good relationship with the customer leads to every
business a great success. Customer relationship management is one of the important factors in
the present competitive world every company has to maintain their customer database for
customer retention so GDPA focuses on aims to understand, anticipate, manage and
personalize the needs of an organization's current and potential customers. by providing
options, alternatives, floor display, brands. Preferences, Product modification.

41

Common questions

Powered by AI

Urbanization and lifestyle changes have significantly influenced the demand for Indian spices and convenience foods. As urban populations rise, there is an increase in the demand for ready-to-eat foods and convenience products, driving the consumption of a variety of spices used in these products . Changes in consumer preferences, such as the shift towards organic and natural flavors, further amplify this demand. Moreover, disparities in lifestyle post-COVID have reshaped consumption patterns, favoring the growth of e-commerce and the accessibility of diverse food options, thereby enhancing spice market demand .

India is the largest producer, consumer, and exporter of spices worldwide . Indian spices are distinguished by their exquisite aroma, texture, taste, and medicinal value . The spices industry is supported by India's diverse agro-climatic conditions and a strong tradition of spice usage in food, medicine, and cosmetics. India's ability to produce a rich variety of spices, such as garlic, turmeric, chili, pepper, cardamom, and ginger, positions it advantageously in the global market . During 2017-2018, India exported approximately 1.08 billion kgs of spices valued at around USD 3.11 billion .

The Spices Board of India plays a pivotal role in enhancing the export capabilities and market value of Indian spices. It actively propels spice exports through promotions and branding efforts during international fairs, thereby helping to gain significant market value and share globally . Additionally, by establishing quality standards and providing infrastructure support, the Spices Board facilitates the production of premium quality spices, thus enhancing the global competitiveness of Indian spices .

By allowing 100% foreign direct investment (FDI) in food product e-commerce, the Indian government aims to attract significant international investments, which is expected to boost the food processing industry by expanding its market reach and facilitating better access to global best practices and technologies . This move is anticipated to increase competitiveness, encourage innovation, and enhance the quality of food products available to both domestic and international consumers .

The Indian government has been actively promoting growth in the food processing industry through initiatives led by the Ministry of Food Processing Industries (MoFPI). Key measures include the approval of proposals for joint ventures, foreign collaborations, industrial licenses, and the establishment of 100 percent export-oriented units . These initiatives aim to enhance investments and drive the sector's expansion, considering its potential for value addition and its substantial role in the Indian economy .

Indian spices find applications beyond traditional culinary uses in areas like food preservation due to their antimicrobial and antioxidant properties, and in the cosmetics industry for products like soaps and toothpaste . However, the industry faces challenges such as insufficient legal provisions, inadequate surplus for export, and issues concerning product quality and quantity . To overcome these challenges, key players in the industry are investing in technological advancements and research and development .

Consumer trends and sustainability are increasingly influencing the spice industry. The growing consumer interest in sustainability and high-quality products is driving demand for organic spices, which are forecasted to grow by 5% annually to reach $368 million by 2025 . Changes in consumer attitudes and lifestyle, prioritizing safety, and a focus on sustainability are encouraging industry players to adopt eco-friendly practices and diversify spice production to meet evolving consumer expectations .

India's domestic spice market is significant due to its large size and diversity, supported by the traditional use of spices in Indian cuisine and a rich variety of spices produced. This strong domestic base fosters an environment conducive to large-scale production, which in turn supports international trade by making India the largest producer and exporter of spices . With global demand rising, India's extensive domestic market provides a foundation for sustained growth and competitiveness in the global spice trade .

Adopting food safety and quality assurance mechanisms, such as Total Quality Management (TQM), ISO 9000, ISO 22000, HACCP, GMP, and GHP, brings numerous benefits to the food processing industry. These measures help in adhering to stringent quality and hygiene standards, which protect consumer health and enhance product acceptance by overseas buyers . By adopting these mechanisms, the industry is better equipped to face global competition and maintain technological competitiveness with international best practices . This proactive adoption boosts confidence in Indian processed food products globally.

The growth of India's spice market is driven by factors such as the rising global demand for natural flavors and the shift in consumer interest from artificial to natural products . Technological advancements play a crucial role by enabling producers to offer premium quality spices globally and facilitating the establishment of quality evaluation laboratories and infrastructural facilities provided by the Spices Board of India . Additionally, the spices' antimicrobial and antioxidant properties support growth across food preservation and cosmetic applications .

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