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    "Management in GlobalPerspective"

    Experience of Indian Companies

    excelling with Foreign CollaborationFebruary 11-12, 2011

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    Fabulous experience as long

    as it lasted..

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    Background

    Hero Honda Motors Ltd. is the world's largest manufacturerof two wheelers, based in India.

    The company was a joint venture between India's HeroGroup and Honda Motor Company, Japan that began in

    1984.

    In 2001, the company achieved the coveted position ofbeing the largest two-wheeler manufacturing company inIndia and the World No.1 two-wheeler company in termsof unit volume sales in a calendar year by a singlecompany. Hero Honda has retained that coveted positiontill date.

    Today, every second motorcycle sold in the country is aHero Honda bike. Every 30 seconds, someone in Indiabuys Hero Honda's top-selling motorcycle Splendor.

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    Factors which made Honda, Japan enter a JVwith Hero Group

    Honda selected the Hero Group for a variety ofreasons, which included:

    Its engineering capability

    Relevance and salience of HERO brand

    Distribution network

    Commitment to Quality

    Tight focus on financial and raw material process Low employee turnover

    Cordial Industrial Relations

    http://skraghav.files.wordpress.com/2007/11/herohonda_hunk1.jpg
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    Core Strengths

    The success of Hero-Honda venture wasunderpinned on five core strengths:

    Relationship Management with all stakeholders

    Global Scale of operations

    Maximizing Customer Value Best-in-breed products and solutions

    Efficient Asset Management

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    In words of..

    Hero Honda motors is the most successfulHonda joint ventureworldwide

    K. Suzuki, Senior Managing Director, Honda Motor, Japan

    Without Hero Honda management it is verydifficult to achieve these results with Hondatechnology alone. It is with mutual

    cooperation that this is happening.Y Munekuni, Chairman Honda Motor

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    Present Scenario..

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    The breakup of Hero Honda in December,2010 after a collaboration spanning 25

    years sent shockwaves across the entireIndian auto industry. Hero Honda hadbrought the concept of a twowheeler inIndias collective consciousness.

    http://trak.in/tags/business/2010/12/18/hero-honda-divorce-brand-identity/http://trak.in/tags/business/2010/12/18/hero-honda-divorce-brand-identity/http://trak.in/tags/business/2010/12/18/hero-honda-divorce-brand-identity/http://trak.in/tags/business/2010/12/18/hero-honda-divorce-brand-identity/http://trak.in/tags/business/2010/12/18/hero-honda-divorce-brand-identity/http://trak.in/tags/business/2010/12/18/hero-honda-divorce-brand-identity/http://trak.in/tags/business/2010/12/18/hero-honda-divorce-brand-identity/http://trak.in/tags/business/2010/12/18/hero-honda-divorce-brand-identity/
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    The Honda group in the past had invested a lotinto technology and R & D.

    But now to adhere to latest Euro-V norms theup-gradation means greater investment intechnology and innovation while fact is that atthe end of the day Honda and Hero Group arecompetitors.

    And therefore Honda India is vary of sharingthis technology with the Hero Group

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    The other important reason being Honda,which provided the technology to the

    company, was never too happy with its26 per cent share of the dividends androyalty; it felt its contribution was waybigger.

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    The Future:

    The Hero group has announced that it will buyHondas 26% stake.

    Analysts expect Hero group to lose marketshare, currently around 40-50 percent, in thelong term as Honda becomes more aggressive.

    The name Hero Honda can be used till 2015.

    Hondas first move will be to launch two entry-level bikes. It is building a new factory for two-wheelers in Andhra Pradesh besides beefing updistribution outlets.

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    Flow of Presentation

    INDIAN ECONOMY-AN OVERVIEW

    Why are American Companies in India?

    Excerpts from President Obamas Speech Types of FOREIGN COLLABORATIONS

    Benefits to Indian Companies with ForeignCollaboration

    Great Experiences

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    INDIAN ECONOMY-AN

    OVERVIEW India is world's largest democracy & among the

    strongest emerging markets in all businessfield.

    India is a liberalized economy with 1.5 billionpeople with 300 million in the middle classbracket, with well matured financial andsecurities market and time-tested judicialsystems.

    India has 5 major metropolitan urban centersgrowing @ 2.1 % p.a. India's urban populationwas 218 million as on 2002, and expected to be500 million by 2012.

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    INDIAN ECONOMY-ANOVERVIEW

    India is a WTO member committed to providingopportunity to the global market. The IndianGovernment is constantly undertaking reforms

    in every sector with Infrastructure Sectorreceiving Government's fullest attention.

    India now permits foreign investment virtually inevery sector of the economy. Majority foreign

    equity, even upto 100 per cent in some sectors,is encouraged and special investmentincentives are provided.

    http://www.google.co.in/imgres?imgurl=http://images.wikia.com/india/images/f/f8/Flag_of_India.svg.png&imgrefurl=http://india.wikia.com/&h=300&w=450&sz=11&tbnid=o9L-2ULv2K_GSM:&tbnh=85&tbnw=127&prev=/images%3Fq%3Dphoto%2Bof%2Bindia&zoom=1&q=photo+of+india&hl=en&usg=__adIGQcz80zjl1TM2FER98CCKY38=&sa=X&ei=WopPTcvxOovtrQeDtpTaBg&ved=0CBcQ9QEwAA
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    INDIAN ECONOMY-AN OVERVIEW

    Foreign investment up to 50, 51, 74 and 100 percent inpriority industries/activities, is eligible for automaticapproval by the RBI.

    Automatic approval is also available for holding equity upto 51 per cent in trading companies engaged primarily inexport activities.

    In addition, 100 % Export Oriented Units (EOUs) andunits set up in designated Export Processing Zones(EPZs) are eligible for automatic approval provided they

    satisfy stipulated criteria. Foreign technology agreements are also eligible for

    automatic approvals within certain limits.

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    INDIAN ECONOMY-AN OVERVIEW

    India has become a favorite destination for business housesworld wide for the following reasons:

    Large pool of educated low manpower cost in India. Disposable income is continuously increasing with the

    economy growing at more than 8.5% p.a.

    Cities booming with world class integrated infrastructure.

    India has potential to attract more than US $ 100 billionover next five years.

    Potential for creation of 1 Million direct and indirect jobseach year.

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    INDIAN ECONOMY-AN OVERVIEW

    Indian economy has a favorable businessenvironment in India

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    Why are American Companies in India?

    The biggest reason is the high potential of Indian market andeconomy.

    Along with China, India is the only fast-growing country that canmake a difference to the ' bottom lines of major companies.

    As per simple statistics the reason why American companiesare coming down to India is that the gross domestic product ofU.S. has come down by 0.8% in 2009 while India was growingat 6.6%

    Besides, established big brands have already impregnated theU.S. and European markets. But, the Indian market still offers alot of scope and space for those to grow.

    India is also a large depository of skilled yet cheap labor.Hence, it becomes easy for the American companies tooptimize their productions in India.

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    Why are American Companies inIndia?

    The American companies in India started their dreamruns during 1990 when they reaped huge profits. Thecompanies have seen double digit year-on-year growth invarious sectors like Technology, Colas, Agriculture,

    Automobiles, Equipments, Finance and Banking. According to the American Chamber of Commerce in

    India, their membership base has soared up from zero in1992 to more than 300 till date.

    The major success in terms of investment and growth

    came in technology sector. Many of the top IT companiesin India are American. In fact, out of the top 20 ITcompanies operating in India, 9 are from the U.S.

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    Excerpts from President

    Obamas Speech in Mumbai The United States sees Asia-and

    especially India-as a market of thefuture. We dont simply welcome yourrise-as a nation, and a people-weardently support it. We want to invest init. And Im here because I believe that inour interconnected world, increased

    commerce between the United Statesand India can be and will be a win-winproposition for both nations.

    http://www.starpulse.com/Notables/Obama,_Barack/gallery/JTM-046721/
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    Excerpts from President

    Obamas Speech in Mumbai Our relationship is also about more than the

    goods that we sell or the investments we make-its about the innovative partnerships we forgein the name of progress.

    Im confident that we can and will forge neweconomic partnerships and deliver the jobs andbroad-based growth that our peoples so richlydeserve. And I am absolutely certain that therelationship between the United States andIndia is going to be one of the definingpartnerships of the 21st century.

    http://www.starpulse.com/Notables/Obama,_Barack/gallery/JTM-046721/
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    Types of FOREIGN COLLABORATIONS

    There are two types of foreign collaborations:

    a) Financial collaboration (foreign equityparticipation) where foreign equity alone is

    involved. b) Technical collaboration (technology transfer)

    involving licensing of technology by the foreigncollaborator on due compensation.

    There are two approving authorities 1) Reserve Bank of India, and

    2) Department of Industrial Development in theMinistry of Industry, Government of India.

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    Benefits to Indian Companieswith Foreign Collaboration

    Collaboration Increases Productivity

    Collaboration Increases Profitability

    Collaboration Foster Diversity

    Collaboration offers new products and services tocustomers

    Collaboration results in better employee attraction andretention strategies

    Collaboration helps in profitable alliances with otherbusinesses

    Collaboration assists in fighting competition

    Collaboration builds long lasting business relationships

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    Benefits to Indian Companieswith Foreign Collaboration

    There are four major benefits to

    collaboration Reducing costs

    Enhancing quality

    Accelerating speed Creating business agility

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    Benefits to Indian Companieswith Foreign Collaboration

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    Benefits to Indian Companieswith Foreign Collaboration

    Reducing costs

    Lower transaction cost

    Elimination of number of cycles Waste Reduction

    Quality

    Better decision making

    Reduction in Product defects

    Enhanced customer experience

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    Benefits to Indian Companieswith Foreign Collaboration

    Speed Reduction in cycle time

    Accelerated go-to-market timeline Rapid concept of commit to production

    Business Agility Accelerated rate of innovation

    Flexible capacity deployment

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    GreatExperiences

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    Great Experiences

    Maruti-Suzuki

    Bharti-Walmart

    Tata DoCoMo Toyota Kirloskar Motor Private

    Limited

    Agro Tech Foods Ltd (ATFL) Kwality Walls Ice Cream

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    Maruti-Suzuki

    http://www.google.co.in/url?q=http://living.oneindia.in/automobiles/auto-news/2011/maruti-suzuki-sales-low-profit-050211-aid0083.html&sa=X&ei=E4NPTdzZB4HQrQed7tzZBg&ved=0CDYQpwIwAw&usg=AFQjCNG0S4quKST6Uuc1Wxrk7VsM8P_nTAhttp://www.marutisuzuki.com/maruti-cars-home.aspx
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    Maruti-Suzuki

    According to maruti vision statement itsgoals include maintaining leadership in

    the Indian automobile industry, creatingcustomer delight, increasing shareholderwealth and being a pride of India.

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    Maruti-Suzuki

    The company offers a wide range of carsacross different segments. It offers 14

    brands and over 150 variants.

    In fiscal 2009-10 Maruti Suzuki becamethe only Indian company to manufacture

    and sell One Million cars in a year.

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    A Buying Experience Like No

    Other .. Excellent customer service

    Tops in customer satisfaction surveys

    Cost leadershipRenewed focus on Style and aesthetics

    Straddling all segments with latest

    launch of Kizashi.

    http://www.google.co.in/url?q=http://www.indiancarsbikes.in/auto-videos/video-time-kizashi-super-bowl-badly-dressed-27556/&sa=X&ei=rYBTTe-gHYbnrAeUzJSpCA&ved=0CCsQpwIwAw&usg=AFQjCNG9cfcwrI-yHAhwce5NtcxB02N11A
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    Bharti Walmart

    Bharti and Walmart have a joint venture in Retail.Walmart manages the Supply chain while Bharti managesthe front end of the new stores. This win win deal has givenWal-Mart access to Bhartis domestic communications networkand an understanding of India customer, while Bharti got accessto Wal-Marts cutting edge logistics prowess, management

    systems and overseas network.

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    Bharti Walmart collaboration

    What does this really mean for Indiaand Indians?

    World class stores with good customerservice

    Everyday Low Prices

    Quality assortment of merchandise

    More jobs & More related jobs acrossthe supply chain

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    Business Agility

    The cash and carry store of Bharti Walmart would throwopen its doors by the end of 2011.

    The wholesale cash and carry operation is aimed at

    business to business customers and caters to retailers,caterers, businessmen, and the neighborhood kiranastores among other institutional customers.

    The cash and carry stores are typically spread over ahuge area and stock thousands of food and non food

    items. They keep both fresh and frozen food items andsell a wide range of personal and home care products,electronic gadgets, garments etc.

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    Bharti Walmart collaboration

    Over 90% of the goods will be sourced locally,helping keep down costs.

    Bharti Wal-Mart, in association with the Punjabgovernment, has also started a training centreoffering full scholarship to bridge the shortageof skilled workers for cash-and-carry andorganised retail formats.

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    TATA DoCoMo

    TATA DoCoMo, usually referred to asDoCoMo is a Tata Teleservices Limited's(TTSL) cellular service provider on the GSMplatform-arising out of the Tata Group's

    strategic joint venture with Japanese telecomgiant NTT Docomo in November 2008.

    Tata Teleservices received a pan-India licenseto operate GSM telecom services, under thebrand "TATA DoCoMo". Tata Teleservices is

    the country's fourth largest operator in terms ofwireless subscribers (including both CDMA andGSM), after Bharti Airtel, RelianceCommunications and Vodafone.

    http://en.wikipedia.org/wiki/Tata_Teleserviceshttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/NTT_Docomohttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/NTT_Docomohttp://en.wikipedia.org/wiki/NTT_Docomohttp://en.wikipedia.org/wiki/NTT_Docomohttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Tata_Teleserviceshttp://en.wikipedia.org/wiki/Tata_Teleserviceshttp://en.wikipedia.org/wiki/Tata_Teleservices
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    First Mover Advantage

    Tata DOCOMO offers both prepaid andpostpaid GSM cellular phone in 18 circles. Ithas become very popular with its one second

    pulse especially in semi-urban and rural areas.They are launching their service from the southof India to central, east and north.

    Tata DOCOMO had about 32.82 million usersat the end of June 2010.

    On 5 November 2010, Tata DOCOMO becamethe first private sector telecom company tolaunch 3G services in India .

    http://en.wikipedia.org/wiki/Prepaidhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Cellular_phonehttp://en.wikipedia.org/wiki/Cellular_phonehttp://en.wikipedia.org/wiki/Cellular_phonehttp://en.wikipedia.org/wiki/Cellular_phonehttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Prepaid
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    Accelerated rate of innovation

    3G offers:

    Great & fast Internet Experience

    Richer Live Communications

    24X7 Live Entertainment whenever andwherever

    Mobile becomes a complete infotainmentzone that one can carry around in pocket.

    New Services like, Google Maps, GPS, livemulti-player gaming or interactiveapplications.

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    Toyota Kirloskar Motor PrivateLimited

    Toyota Kirloskar Motor Private Limited (1997) is jointventure between Toyota Motor Corporation and theKirloskar Group, for the manufacture and sales of Toyotacars in India. It currently is the 8th largest car maker inIndia after Maruti Suzuki, Hyundai, Tata, Mahindra,Chevrolet, Ford, and Honda.

    The company Toyota Kirloskar Motor Private Limited(TKMPL) according to its mission statement aims to playa major role in the development of the automotiveindustry and the creation of employment opportunities,not only through its dealer network, but also through

    ancillary industries with a business philosophy of "PuttingCustomerFirst. TKMPL sold 74,759 vehicles in India in the year 2010

    registering a growth rate of 38% compared to 2009 sales.

    http://en.wikipedia.org/wiki/Toyota_Motor_Corporationhttp://en.wikipedia.org/wiki/Kirloskar_Grouphttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limitedhttp://en.wikipedia.org/wiki/Ford_India_Private_Limitedhttp://en.wikipedia.org/wiki/Honda_Siel_Cars_India_Limitedhttp://www.google.co.in/imgres?imgurl=http://www.dymee.com/wp-content/plugins/wp-o-matic/cache/3237b_Toyota-FT-HS-concept.jpg&imgrefurl=http://www.dymee.com/articles/a-lot-pics-of-toyota-cars.html&h=300&w=400&sz=37&tbnid=prKqhviEQEu1-M:&tbnh=93&tbnw=124&prev=/images%3Fq%3Dphoto%2Bof%2Btoyota%2Bcars&zoom=1&q=photo+of+toyota+cars&hl=en&usg=__tStXNKecavSMY2hUzoE6kRTySbQ=&sa=X&ei=q3xTTf2TGc6zrAeW9ITRCA&ved=0CBIQ9QEwAAhttp://en.wikipedia.org/wiki/Honda_Siel_Cars_India_Limitedhttp://en.wikipedia.org/wiki/Ford_India_Private_Limitedhttp://en.wikipedia.org/wiki/Chevrolet_Sales_India_Private_Limitedhttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Kirloskar_Grouphttp://en.wikipedia.org/wiki/Kirloskar_Grouphttp://en.wikipedia.org/wiki/Kirloskar_Grouphttp://en.wikipedia.org/wiki/Toyota_Motor_Corporationhttp://en.wikipedia.org/wiki/Toyota_Motor_Corporationhttp://en.wikipedia.org/wiki/Toyota_Motor_Corporationhttp://en.wikipedia.org/wiki/Toyota_Motor_Corporationhttp://en.wikipedia.org/wiki/Toyota_Motor_Corporation
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    Quality Revolution

    Whether it is time-tested Innova orrecently launched Etios Toyotas USP

    has always been consistent performanceand reliability and the combination ofboth will be hard to beat in the value andbrand conscious Indian car market.

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    Agro Tech Foods Ltd (ATFL) is a publiclimited company affiliated to ConAgra

    Foods Inc. of USA, which is one of theworlds largest food companies engagedin the business of marketing food andfood ingredients to consumers and

    institutional customers.

    http://www.conagrafoods.com/http://www.conagrafoods.com/http://www.atfoods.com/index.phphttp://www.conagrafoods.com/http://www.conagrafoods.com/http://www.conagrafoods.com/http://www.conagrafoods.com/http://www.conagrafoods.com/
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    Innovation

    Sundrop Superlite was first innovative product for theIndian consumer. It was the first REFINED SUNFLOWEROIL in the market in 1988.

    Sundrop Heart has been to-date the only Blended Oil with a

    proven claim of cholesterol reduction. In addition, it is the oilwhich has the right amount of Oryzanol to stake and provethis claim; also, it is the oil which has the best MUFA-PUFAratio as recommended by the American Heart Association(AHA).

    ACT II Instant Popcorn is a very innovative offering,enabling the consumer to make her own hot and fresh

    popcorn in just 3 minutes, whether or not she has amicrowave oven at home. This innovation was triggered dueto the understanding of the consumer infrastructure.

    http://www.atfoods.com/index.php
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    Innovation

    ACT II Microwave Popcorn, when launched, wasthe only microwave popcorn in the market. Tillthen, popcorn as a snack existed in theconsumers minds only as an outdoor snack.

    Healthy World Dried Green Peas is the first andonly offering of Dehydrated, Long-Shelf-Life (24months) Green Peas in the Indian market. Thisallows consumers to have their delicious green-peas laced food "Whenever they want.

    Snack Break is the only shelf-stable pudding,made healthy, nourishing and wholesomebecause of its contents.

    http://www.atfoods.com/index.php
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    Kwality Ice Cream was the pioneer inthe Indian ice-cream manufacturingindustry and in 1956 became the first

    company in the country to use importedtechnology for manufacturing ice-creamon a commercial scale. As the ice-creamindustry exploded in India, in 1995

    Kwality Group joined hands withHindustan Lever Limited and then therewas no looking back.

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    The Indian consumer market was introduced toKWALITY WALLS the result of acollaboration between global brand Walls and

    the leading Indian ice-cream brand Kwality.Today, Kwality is not just a brand it is the ice-cream associated with the Indian summer; itsthe first choice in ice-cream during thescorching Indian summers.

    Kwality ice-creams are trusted not only for theirrich, creamy flavours, but also for their trustedquality and nutritious food value.

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    Enhanced customer experience

    The Kwality Walls brand is one of the power brands of HUL and isone of the leading players in the Ice Cream Category in India. Itsfun-filled ice cream parlour concept is called Kwality WallsSwirls.

    Swirls ice cream parlour is an International concept that was

    launched in 1994 in Netherlands. It now has over 2000 HeartbrandParlours across the globe. The concept was launched in India in2004, and till date, there are over 85 Kwality WallsSwirls Parlours.

    The core concept of Swirls is Create your Own ice cream.Consumers can select their ingredients from an array of options andchose the flavour of their ice cream, which is then crafted for them

    fresh and in Swirlsstyle as they wait for their delicious dessert. Swirls Parlours attempt to capture the on the move consumer

    trends and are located at high footfall areas such as malls andshopping centers and are classified under the impulse range ofproducts.

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    Conclusion

    Continue Collaborating,

    Continue Progressing, Growingand Succeeding

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