BACKGROUND OF THE PROMOTERS

The Promoters –

Mr. Taizoon F Khorakiwala is a Graduate from BITS, Pilani and an alumnus of Harvard
University, USA
Mr. Arnab Basu is an Honours Graduate from Calcutta University and an alumnus of
London Business School, UK.
Mr. T. F. Khorakiwala had about twenty years of experience in bakery business and had a
specialexpertise in trading of bakery machinery.

Basu, a friend of T. F. Khorakiwala, was working as aprobationary officer in the State Bank of
India when he left his job to join Khorakiwalas inBombay in late seventies. He also had
experience with Hindustan Lever Limited in marketing division. Soon, Basu was sent to Saudi
Arabia to handle operations of Switz Corporate. Under Basu’s leadership Switz grew at a rapid
pace. However, because of the growing unrest in Middle East during late 80’s, Basu decided to
come back to India and settle in Calcutta, his hometown

The Switz Group Companies are acknowledged market leaders in Bakery products in the Middle
East, having production centres in Saudi Arabia, UAE, and Oman and trading operations in
Bakery machinery and ingredients in the above countries and also in Singapore, Malaysia and the
Philippines.

HISTORY
THE BACKGROUND

Khorakiwalas bought a small chain of bakery – Monginis in Goa in 1978. On acquisition, the
business was moved to the lucrative market in Bombay . Then the business expanded to Saudi
Arab in the name of “AL MINTAKH SWEETS AND PASTRIES “ , along with a local
partner . The business flourished in 10 countries with head office in Dubai. The whole group
was named as SWITZ CORPORATE.
SFPL is part of Switz India Limited, which is a part of Switz Corporate Group. Mr. Arnab
Basu who was instrumental in starting the operations in Calcutta, handled Switz operations in
India
THE OPPORTUNITY RECOGNITION PHASE

Basu too the initiative and Switz Foods Private Limited was incorporated in 1988 at Kolkata,
West Bengal, to market the Monginis range of packaged cakes, manufactured by Monginis
Foods Limited, Mumbai
As Calcuttians didn’t have a great liking for packaged cakes, they wanted something fresh,
Fresh cakes were not available at most parts of the city as almost all good bakeries like
Flury’s ,Nahoum’s and Fripo’s were located in central Calcutta.

THE DEVELOPEMENT PHASE

The decision was taken by the management , to provide fresh caske near customer’s residence.
Basu decided to manufacture products in Calcutta and sell them through exclusive franchisee
network rather than asking for products from Mumbai.
A small production facility was built at Kasba Industrial Estate, in East Kolkata in 1991.
The Bakery commenced commercial production, manufacturing savouries pastries, cakes,
birthday gareaux, cookies breads and other bakery items.
Outlets were opened and were named as “MONGINIS – YOUR FRIENDLY
NEIGHBOURHOOD CAKE SHOP “
The company could attract its first franchisee in Dhakuria , South Calcutta.
The Company decided that all the unsold products at the end of the day will be taken back by
them, without any cost to the franchisee.
Through the policy of freshness they achieved the objective of capturing customers mind
space.
Selling reasonably priced fresh cakes in the Middle neighbourhood was an immediate
success.By the end of 1st year it recorded a sale of Rs. 6 lakhs at 1991-92 prices

THE EXPANSION STAGE

As the business was growing ,they installed their 1st computer in 1993 and used LOTUS was
used , to maintain franchisee information, order placed , credit balances etc.
Monginis saw a huge jump in its sales – Rs. 250 lacs at the end of 1994-95 and the number of
outlets had reached 23
It outsourced its logistics to Mahindra and Mahindra.
Many local competitors began to emerge as the entry barriers were low.
The number of Monginis franchisee outlents had grown to 102 by December 2004 , while the
nearest competitor was far behind with 68 outlets.
Market Share of Bakery (Cakes/Savouries/Pastries/Gateaux) Industry

Year 2004
COMPANY PERCENTAGE
Monginis 46
Sugar and spice 24
Kathleen 12
Flury’s 9
Others 9
Source: SFPL Estimates
Note: Only branded players considered
Sweetmeat shops not included

SATURATION

The operations covered entire metropolitan area of Kolkata, which made further expansion
difficult.
At the same time threat was posed by entry of global heavy weights such as Domino’s , Pizza
Hut , Barista ,Café Coffee Day etc as they had entered fast food market in Kolkata.
Thus a saturating market , increased competition ,lower margins were becoming major
concerns for the organization.
The management decided to look into every aspect of the business , with focus on cost
cutting ,reduction of uncertainties and explore new markets – towns of W.B.

CAKES / PASTRIES
Milk Cake
Choco Muffin
Crown Cake
Butter Scotch
Strawberry
Vanilla
Choco Chips
Choco Delite
Chocolate excess
Truffle Pastry
Toffee Pastry
PACKED CAKES
Frootz
Zig Zag
Kup Keyk
Party Cake
Dream Cake
Chocolate Kup Keyk
SWEETS
Badaam Barfi
Soan Papri
Laddu

SAVOURIES
Chicken Croissant
Chicken Patties
Chicken Pizza
Chicken Spring Roll
Chicken Titbit
Chicken Internet
Chicken lollypop
Chicken cutlet
Cream Roll
Fish Chop
Fish Kachouri
Fish Spring Roll
Fish Titbit
Mistisukh
Panir Kachouri
Panir chilli roll
Veg. Manchurian patties
Veg. Patties
Veg. Pizza
Veg cheese sandwhich
Veg. Burger
Motton singhara
Motton Patties
Egg Titbit
We asked Mongini’s customers that “Why do they buy Monginis products ??”

Their responses can be summarized as under –

The reach of Mongini’s is very high, one can find a Mongini’s in their locality whereas, other
competitors’( like Kookie Jar , Cakes ,Flury’s , Just Baked) have very limited outlets.

Huge variety in cakes, pastries and savouries. Covers all types in non-veg snacks i.e. egg
,chicken , motton and fish.

The outlets are maintained hygienically (the competitors like Kathleen , Sugar n Spice do not
maintain such hygene )

There is not much of a price difference in the prices but the taste is far better than the
competitors’ products (Kathleen , Sugar n Spice)

They get PRICE FLEXIBILITY in cake and pastries i.e. they have option to choose from Rs.3
to Rs.35

Apart from cakes , pastries and savouries , sweets are also available ( Laddu, Soan papri and
Badaam barfi)

For savouries –
Firstly Mongini’s has captured the regional tastes and preferences by selling snacks
made of fish ( Fish chop/spring roll / kachouri / titbit )
The common masses don’t like to pay high price for savouries (in Cakes, Kookie Jar
etc.) when they can get the same items at a reasonable price at Mongini’s

GROUP MEMBERS –

ABHISHEAK BASU

ANUP HIRAWAT

RACHANA JAIN

SONAM JAYASWAL