PUSHKARVALA & CO. – AN AVANT-GARDE BUSINESS

Siddhartha Saxena wrote this case solely to provide material for class discussion. The author do not tend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to maintain confidentiality.

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ACKNOWLEDGEMENT

The case author is thankful to the Writer's Lab, Centre for Learning Future Ahmedabad University, for extending their sincere support and facilitating to make the case coherent and better presentable.

Version: 2020-06-28

On 12 April 2019, Satish Rampuria - the Managing Director of Pushkarvala & Co. (PC) deliberated about the growth and expansion of the company while sitting in the warehouse of Devika House. It was the time when the second audit of the ISO1 had begun at their factory in Rakanpur, Ahmedabad. Before a month, the USFDA2 authority had stormed in to verify the standards of the products produced and exported. Though he seemed quite confident regarding the quality and safety measures of the products, the only thought that popped up repeatedly was, how will PC meet the increasing demands of products once they get the EW certification. Should they invest more in mechanization? The subsequent question was regarding the female employees required to handle the produce as they weren’t willing to join the business even if the management offered generous wages. So, should they stay content with their limited per-day production capacity? Then how would PC meet the targets of opening its 8th and 9th branch – one in Gandhinagar and the other in Mumbai this year? Thinking of possible ways for expansion, he stood up from his chair and pressed the elevator’s button to go to the retail store which is situated on the first floor of Devika House.

History

Devika Rampuria was born in a well-to-do traditional Jain family of Mrs Kamlesh and Mr Satyendra Rampuria in the year 1929. They belonged to the Jain Visha Oswal Community3 which consists of Jain people with origins in the Marwar region of Rajasthan and Tharparkar district in Sindh. Devika was later married in a middle-class family and hence to generate financial support, she had to resort to

1 ISO (International Organization for Standardization) is an independent, non-governmental, international organization that develops standards to ensure the quality, safety, and efficiency of products, services, and systems.

2The Food and Drug Administration (FDA or USFDA) is a federal agency of the United States Department of Health and Human Services which is responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs (medications), vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices (ERED), cosmetics, animal foods & feed and veterinary products.

3 The Oswal is a Jain community with origins in the Marwar region of Rajasthan and Tharparkar district in Sindh. Oswals are now subdivided into Marwari, Gujarati, Kutchi and Multani Oswals.

laborious work like sewing, handicrafts and a job at the mill. The earnings weren’t sufficient enough to support the medical bills of her husband, so she thought of taking up a part-time job at one of the khakhra4 distribution centres that was run by her Community. Unsatisfied with that job, she thought of starting her own khakhra business by making and selling khakhras on her own. This is how a female entrepreneur generated the idea of having a business from making and selling khakhras in the city of Ahmedabad, India.

“This was a risky plan because in the mid-1950s, there was no culture in Ahmedabad city that promoted eating-out habits. In fact, there was a possibility of social boycott. Additionally, khakhras fell under a category of ‘food for the sick’ for all the non-Jains, which implied that this food item was prepared only by the homemaker that too whenever it was required. So, it was a real challenge for my mother to grow and sustain this business.”

-Satish Rampuria, the first generation successor of Devika and Managing Director of PC

Since the beginning, Devika had an entrepreneurial nature. She took the risk and challenge as she could forecast a bright future of the Khakhra business with the increasing urbanization and industrialization in the country. Soon, in the early 1960s, Ahmedabad started becoming known for its food culture with the increasing number of “Farsan”5 shops in the city. With this, the idea of khakhra business got a boost as Devika started getting orders from the nearby “Pols”6, i.e., from the vicinity in the old city of Ahmedabad.

“She used to collect flour from the people of her neighbourhood, toil for hours early in the morning to make khakhras out of that. Later she would go to distribute the khakhras as per the orders received from her community members. In one way, she was lucky because she had the community members as ready customers because khakhras were considered as a staple food for the Jains.”

-Satish Rampuria, the Managing Director of PC

The khakhra business continued this way for a couple of years till she got introduced to a new variety of khakhra which was twice in weight and better in taste as compared to the earlier ones. These khakhras were known as “Mangaroli Theplas/khakhras”7. As this variety was never introduced in her neighbourhood before, she got the advantage of introducing this variety, and hence the profits grew manifold, that too with lesser efforts than before. Soon, word of mouth spread regarding the taste and expertise of Devika in making these khakhras. Consequently, the demand sometimes went so high that a part of the work had to be outsourced. Nonetheless, Devika was extremely particular about the quality and taste of products she made and hence she would never rely thoughtlessly on outsourced work. She

4 Khakhra is a thin cracker common in the Gujarati and Rajasthani cuisines of western India, especially among Jains. It is made from mat bean, wheat flour and oil. It is served usually during . Khakhras are individually hand-made and roasted to provide a crunchy and healthy snack that can be enjoyed with a selection of spicy pickles and sweet chutneys or with milk and tea. 5 Farsan is a collective term used for a type of snacks in and Maharashtrian cuisine, from the Indian state of and Maharashtra. It includes some fried items which can be stored after drying and the other items are usually fresh or steamed.

6 A pol in India is a housing cluster which comprises many families of a particular group, linked by caste, profession, or religion. Pols are typical of urban centres in Gujarat especially of Old Ahmedabad.

7 Mangaroli khakhras are actually known as Mangaroli Thepla, though it is absolutely different from the popular Gujarati dish called thepla. These are known as Mangaroli khakhras because the taste and the production process is quite similar to that of the regular khakhras.

would check the quality and ask about the ingredients used, which were to be in the proportion she had prescribed.

“Today, even after five decades, the quality, taste, texture and the standard of the khakhras we make is precisely in accordance to what my mother had set in the early 1960s. This is what we are known for, and that is why we are preferred over the other brands selling the same products.”

-Satish Rampuria, Managing Director of PC

Evolution and Growth of the business

Satish was around 13 years old when the business of Mangaroli khakhra started flourishing. Soon after pursuing his college education, he took an afternoon-job so that he would get time in the morning to help his mother with the khakhra work. In those days khakhra-making wasn’t perceived as a lucrative job and hence he never overtly expressed his involvement in the khakhra business to his friends.

“One of the biggest challenges that I have personally faced was when we had to shift from the old city to the new city in Ahmedabad due to the change in the geographical structure of the city. This is when I believed that where there is will, there is a way because God always helps those who work hard.”

-Satish Rampuria, Managing Director of PC

Satish got married in 1979. Devika’s daughter-in-law, Usha, belonged to an affluent family and it helped them re-establish the business in Mithakhali area in the new city of Ahmedabad. The daughter-in-law engaged herself in positive word-of-mouth among her groups, and people from diverse groups expressed their interests to taste khakhras. Eventually, a new customer base developed which had to be catered to and thus, it required employees to be hired. Gradually, the business kept growing, and therefore, new methods of production and delivery had to be adopted. Till 1965, the production and distribution of khakhras happened only from Devika’s home. But, as the demand increased to a great extent, they decided to start their business from a shop in Mithakhali. Thus, Devika’s role changed from a sole producer and distributor to a customer relationship manager and quality check in-charge while her husband resumed the responsibility of the Store Manager and Cashier.

“I remember how we used to wait downstairs to get hot and fresh snacks prepared by Devika in the Mithakhali branch. Today even after 25-30 years, my children, my 3rd generation and I, all eat snacks from PC only. The quality and taste remain intact even after so many years.”

-Neelam Singh, 82-year-old lady, a loyal customer

It was 1981 when Devika was diagnosed with liver cancer. She passed away at a young age of 54. The daughter-in-law shared the responsibility of the family business as she assumed her part of the role in managing the business while having a nine-month-old baby. After two years, Usha gave birth to another child, and that is when Satish thought of leaving his job and joining full-time.

Satish was very dedicated to growing the business that his mother had established. For this, he not only managed the growing demand by increasing the production capacity but also enlarged the product length by introducing “farsan” items in the shop along with the launch of a few basic flavours of khakhra which led to an increased product depth.

In the early 2000s, Satish’s sons joined the family business. Puneet- the elder son, joined the business after completing the Diploma in Agriculture while Ashok joined in after finishing his Masters in Commerce. With the third generation moving in the family business, many changes were observed. The new generation was extremely energetic and dedicated to launching something new. Hence, they engaged themselves in developing new flavours of khakhras. They introduced around 40 different varieties, which include khakhra, sandwich khakhra, masala diet khakhra, fenugreek-spice khakhra, to name a few. As a result, the business seemed to be taking a new shape as the new generation stepped in and thereby sustained itself in a position of monopoly from 1965 to 2005.

Pushkarvala (Mithakhali Crossroads) v/s Pushkarvala (CG Road)

With the increasing competition in the snack industry, PC had to put many efforts to stay sustainable. They had their successful outlet at Mithakali Crossroads. In the early 1990s, it was observed that a new firm called “Pushkarvala & Co.” established its store near Girish cold-drinks on Chimanlal Girdharlal (CG) Road, Ahmedabad. This firm claimed that they have been in the market since 1955 and thereby started taking the benefit of the goodwill and the customer base that the original store of PC had developed. In the beginning, Satish felt that this wouldn’t harm their business in any way because the newly developed store offered similar products at a higher rate with a cheaper quality. But, over years, Satish reflected that it was a not an accurate move to overlook the matter because it was detrimental in capturing the prospective customers as they might develop a wrong impression of the brand if they happened to visit the CG Road store first. After realizing the dispute, Satish applied for registration of PC and eventually in the year 2000, he obtained the trademark. In hindsight, the CG Road shop continues to make profits due to PC’s goodwill. The CG Road shop has adopted various marketing gimmicks like excessive social media marketing, advertising, etc., to attract the customer base as it knew that the original store only relied on word-of-mouth. PC filed a case against the shop on CG Road after getting the trademark registered, but the case remains unsolved in the court even after 19 years.

“Once it was told to me that if someone puts a full-stop to your story, it is always better to extend a line from it. This statement somehow struck me, and since then we decided to stop fighting against that firm, but instead develop a new brand image for ourselves.”

-Rajat Bharadwaj, the first non-family partner at PC

Market Dynamics

Inauguration of new branches

In the year 1999, Satish and Usha registered the firm as Pushkarvala & Co. - A partnership firm. Later, as their sons joined, the partnership extended. Till 2016, it was a family business with only family (Rampuria) members as partners in the partnership, but now it includes the members of Bharadwaj family. In 2010, Rajat Bharadwaj, the first non-family personnel, joined the well-known family business as there was a requirement of external help to handle the daily affairs in the manufacturing units. Soon

after he joined, Rajat proposed to join the firm as a partner. It took PC 4 to 5 years to assess the capabilities of the new joiner and thereby extend the partnership to him. Thus, the extended partnership, including Rajat and his wife came into existence in April 2016 (see Exhibit 4). The product line increased from 40 new flavours to 82 new flavours in the khakhra category. The product portfolio expanded from 275 types of Gujarati snacks to 540 kinds of “farsan” items (see Exhibit 5).

“The snack industry is worth more than $200 billion industry today. The increasing population offers an opportunity for the industry to grow at a fast pace. The customers would prefer to shop from stores around their residences/offices rather than travelling long distances. Our main focus is to provide ease of availability in all potential areas. It thus becomes imperative for more stores and branches to be opened to meet the growing demand and consequently achieve higher turnover and increased market share.”

-Rajat Bharadwaj, the first non-family partner at PC

The location of the business shifted from the old city area to Mithakhali crossroads, and PC further expanded in various regions of Ahmedabad through branching stores (see Exhibit 3). Along with that, significant changes were realized in production capacity and the methods of production. In the early 1970s, the production took place in a rented room just above their shop in Mithakhali region of Ahmedabad. With an increase in demand, Devika outsourced some part of work to the women of Swashrai organization which was in the vicinity. Later, the production work continued from Devika’s home as well as from warehouses of the new places at which PC was opening the store branches. PC kicked off with exports in 2011. In 2015, PC rented a factory near Sola, Ahmedabad. Major hand-made production took place at that factory. In March 2017, PC bought a 20,000 sq. ft. area at Rakanpur, Ahmedabad to open a factory. This factory unit facilitated both hand-made and mechanized production. In late 2018, the rented factory was closed due to outstate issues faced by the workers. Today, approximately 250-300 kg production of khakhras takes place at the new factory in contrast to 10 kg and 25 kg production in the 1970s and 1990s respectively.

Business model dynamism

With the change in the methodology of producing khakhras and other snack items, PC grew through various types of business model suiting its life-stage. Commencing from a cottage industry model, it gradually moved towards a family business, and today it stands in the form of a partnership firm.

In Mithakhali, a two-storeyed house was rented. The production took place in the warehouse, while the retail outlet was run on the first floor. In the beginning, seven people were hired to help Devika in khakhra making. Gradually with growing demand, more employees were hired. The Mithakali store was the first and the only store which sold all kinds of varieties of products they produced. Since then, the name got often associated as “Pushkarvala Mithakhaliwala”. Today, this unit employs twelve men who handle the two-storeyed retail-store.

In 2014, the third retail-outlet called “Devika House” was opened after the second outlet on Satellite Road in 2012. Devika House is a four-storeyed building which has a warehouse on the ground floor, retail shop on the first and the second floor and residential area for the Rampuria family on the third floor. This retail unit employs around six men, three on each floor.

Since 2016, four more retail units have been established to cater to the needs of regional customers. The business model of franchising has been adopted for all these stores. They follow a policy of helping the needy in the sense that they do not entrust the responsibility of handling the franchise to an affluent man, but to a person who follows Jainism as far as eating habits are concerned, who is really willing to work hard to earn a livelihood and who lives in the vicinity of the shop.

“Though I follow Hinduism, I don’t eat onion and garlic at all. If my daughter wants to eat food that contains non-Jain ingredients, she goes out to have lunch/dinner because we don’t bring it home. We believe in following the promise as this trust is what has made our relations so deep and strong with the Rampuria family.”

-Rajat Bharadwaj, the first non- family partner at PC

For the franchising aspect in the initial phase, PC used to take a deposit of INR 1 Million (INR 0.3 million as non-refundable and INR 0.7 Million as refundable). They guaranteed INR 0.04 million as monthly salary to the person who was entrusted the responsibility to manage the franchise until he/she manages to reach the break-even point of INR 0.7 million. PC paid all other expenses. Today, the deposit limit stays the same, but the proportion of non-refundable has increased to 50%. After the break- even point is reached, the person is offered a partnership in the firm, and there are definite targets according to which their share in profits gets defined. For example: if the turnover is between INR 0.7 to 1 million, then franchisee gets 4% share, if the turnover is between INR 1 to 1.5 million, then the share increases to 5%, and if it exceeds INR 1.5 million, it amounts to 10% of the profits earned. Today, these franchisee managers earn approximately INR 0.065 million per month.

The two-storeyed factory at Rakanpur employs 80 workers (44 female and 36 male). It houses six machines. There is a dispatching area on the ground floor where all men are employed to perform various functions like loading-unloading of raw materials and finished goods, packaging, labelling, pricing, etc. Other snacks along with khakhra are managed in the same premise. All female employees are engaged in various jobs on the first floor. Some manage the machines and the produce from it, for instance, grinded flour and flattened . Some do the job of pouring ghee as soon as the is flattened from the first machine. Some sit and turn the chapati upside down as the machine is functioning. Some are engaged in weighing and quality check of the khakhras produced. Some handle the packaging and labelling of khakhras. Working hours of the employees are from 9:30 am to 5:30 pm. In 2018, the factory had 110 employees, but due to an outstate crisis hyped by the locals against North Indians, many workers being migrants had to leave the place and flee.

“Localities feel that they are not getting employment, but the fact is that the migrant workers are at times much more skilled and dedicated as compared to the localities and hence we have contractors who help us find such deserving workers.”

-Rajat Bharadwaj, the first non-Rampuria partner at PC

The raw materials acquired by the firm are strategically sourced. PC doesn’t rely solely on one raw material provider but orders the required inventory from two distributors alternatively. The raw materials supplied to PC undergo a quality check in the laboratory every six months. Production at the factory happens as per daily demand. Fresh produce reaches the outlets each day. PC owns a big vehicle which takes two rounds to deliver the daily produce at the respective stores. Three outlets get the delivery in the morning while the other four get it in the afternoon. Exports to six countries, including

America, New Zealand, Australia, Canada, Singapore, etc., are managed through the factory. PC’s products were also put up in stalls and exhibitions in the countries abroad. Special packaging with due seals is done on the ground floor. The logistics department electronically records the inflow and outflow of the stock keeping units. The export products are directly sent to the distributors in each country who single-handedly manage the distribution of all PC products.

“Once we had a customer complain from one of the countries abroad which expressed dissatisfaction towards the cheese khakhra that had been sent to them. The fact was that as cheese masala is sticky and their weather condition is drastically different than ours, the packaging had stuck to the khakhras packed inside. We knew it wasn’t our fault as we had already mentioned the life of the product, but to make the customer happy, we dispatched double quantity of khakhras ordered by that customer, at our cost the very next day. For us, customer satisfaction is our ultimate goal. Even if we get one call or text that expresses dissatisfaction, I visit that customer’s place and replace the product even if I have to travel out of the city for that.”

-Rajat Bharadwaj, the first non-family partner at PC

HR policies

1) Recruitment and Selection criteria for employees For employees at the factory (sourced through contractual labour): - Should be between 18-35 years of age. - Should know to read and write at least in one language. For employees at the retail store (sourced through references): - Should have passed HSE/ A-level/ K-12 - Should know to read, write and speak in English. - Should pass the job interview. 2) Provision of locker for each female worker at the factory to keep their belongings including mobile phone. 3) Compulsory uniform and sanitized hands before working at the factory. 4) Meal/lunch tokens of INR 15 was given to the workers, though the cost borne by the company was INR 55. Eventually, the practise stopped as the female workers preferred bringing home- cooked food. 5) One social function in a year and picnic to places like Ambaji, Pavagadh, etc., or Navratri (Indian festival) celebration on premise. 6) Gifts for ‘employees of the month’ selected based on punctuality and productivity.

The way ahead

The USFD authority came to the factory premise on the first Friday of April 2019. They were content to see the rules and regulations followed to the letter. They necessitated for a laboratory inside the premise that could facilitate the basic checking. Within two days, all the instruments were arranged, and a small laboratory was set up. The USFD team was surprised to see the timely arrangement and the inspection was done without any complaints. This gave PC a green signal to increase the exports to various parts of America.

“A few years back, Puneet and I tried to convince our father to get an IPO registered. But he thinks that firms that want to get involved in any malpractices do so. Our father is very firm regarding the value system of having only Jain items in the shop, and hence we too

follow it without any questions. This is what challenges us when we brainstorm to develop a new flavour of khakhras as the options become limited.”

-Ashok Rampuria, the second generation successor at PC

The second audit of ISO had already begun. A month back Divya Bhaskar (a regional daily) had published an article on PC on the occasion of Women’s Day. The firm was felicitated by the Times Food Award consecutively for four years starting from 2010 and also in 2017 under the category of “Best Farsan Shop”. In addition to these, many other awards have been in PC’s list of achievements.

The dilemma

With the growing popularity, it has become difficult for PC to increase its production capacity. Khakhra making is a laborious job. Employees are required to handle and add flavours even if the khakhras are made in machines. But the situation is such that workers are not willing to work. In that case, how will PC try to meet the increasing demand for its products (see Exhibit 8 & 9)? What are the possible Human Resource strategies that PC can adopt to attract worthy workers? What other mechanisms should PC take recourse to, to smoothen their production and distribution of products? Which other marketing policies should they resort to stay sustainable in the increasingly competitive market? Theseare several questions going through Satish Rampuria’s mind as he moves down to the retail floor of Devika House. The questions surround the sustainability and scalability of the family business of PC.

Exhibit 1: Family tree of Rampuria owners

Owner of PC Devika

First Generation Shweta Satish Vedika successors Second Generation Puneet Ashok successors Exhibit 2: Timeline of PC

1956: Start of Khakhra venture

1971: Devika's husband joins

1981: Devika passes away. Satish and Usha manages PC

1991: Satish joins full-time (first generation successor)

2001: Puneet Joins (second generation successor)

2007: Ashok Joins (second generation successor)

2011: Export starts

2016: Non family partner added- Rajat Bharadwaj

Exhibit 3: List of PC’s branches with the year of establishment

Year of establishment Area (in Ahmedabad) 1965 Mithakhali Gam 2012 Satellite Road 2014 Devika House near Stadium 2016 Chandkheda 2017 Bopal and Maninagar 2018 Gurukul

Exhibit 4: List of Partners of Pushkarvala & Co. as of April 1st, 2016

1. Puneet Satish Rampuria 2. Anand Puneet Rampuria 3. Ashok Satish Rampuria 4. Sakshi Ashok Rampuria 5. Rajat H Bharadwaj 6. Anita Rajat Bharadwaj

Exhibit 5: List of products sold

Types of Khakhras Regular Khakhra Variety Khakhra Diet Khakhra (without oil)  Sada Khakhra  Chana Jor Khakhra  Sada Diet Khakhra  Methi Khakhra  Mathiya Khakhra  Methi Diet Khakhra  Masala Khakhra  Khakhra  Masala Diet Khakhra  Bangali Jeera Khakhra  Pav- Khakhra  Jeera Diet Khakhra  Ajwain Jeera Khakhra  Masala Khakhra  Jeera Mari Diet Khakhra  Jeera Mari Khakhra  Punjabi Khakhra  Without Salt Diet  Tomato-Kothmir Khakhra  Jeeralu Khakhra Khakhra  Kothmir-Marcha Khakhra  Biscuit Khakhra  Mangroli Khakhra (Thepla)  Biscuit Masala Khakhra  Pure Ghee Khakhra  Mirch Masala Khakhra Exotic Combo  Pure Ghee (cow’s Ghee)  Manchurian Khakhra  Aachar Masala Khakhra Khakhra  Kurkure Khakhra  Cheese Khakhra  Math Khakhra  Harabhara Khakhra  Mexican Khakhra  Mung Khakhra  Cholafali Khakhra  Pani- Khakhra  Katchhi Bhakhri Khakhra  Fudina Khakhra  Chocolate Khakhra

 Cheesy Khakhra Khakhra Mini Khakhra  Nachani (Raag) Khakhra  Plain Butter Dosa  Mini Sada Khakhra  Bajari Methi Khakhra Khakhra  Mini Methi Khakhra  Mugadi Khakhra (Sweet)  Fudina Dosa Khakhra  Mini Masala Khakhra  Farall Khakhra (Seasonal)  Papdi Chat Dosa Khakhra  Mini Jeera Khakhra  Karela Khakhra  Tomato Dosa Khakhra (Bitterguard)  Cheese Dosa Khakhra  Mugadhi Khakhra (Spicy)  Pani-puri Dosa Khakhra  Maggie Khakhra  Dosa Combo Khakhra  Methi Masala Spicy

Khakhra (Achar Masala)

 Mexican Khakhra Tasty Combo Pack Traditional Combo  Ghughra Khakhra  Chat Masala Khakhra  Plain Khakhra  Jav Khakhra  Khakhra  Methi Khakhra  Ratlami Khakhra  Fudina Khakhra  Jeera Mari Khakhra  Jav Masala Khakhra  Biscuit Khakhra  Masala Khakhra  Bajra Sada Khakhra

 Bajra Masala Khakhra  Aakha-Math Khakhra  Multi Grain Khakhra  Pizza Khakhra  Biscuit Fudina Khakhra  Biscuit Panjack Khakhra

 Aayambil Khakhra  Chana Khakhra

Types of Farsan Stick/Ring/Frymus Shakarpara//Bhakhari Waffer/Kathol  Tomato Stick  Shakarpara  Chanan Jor (Spicy)  Soya Stick  Methi Para  Chanan Jor (Plain)  Soya Chips  Bajari Vada (Perishable item)  Moong Jor  Corn Chips  Makai Vada (Perishable item)  Chana  Kela Stick  Thepla -Methi (Perishable item)  Moong (Spicy)  Bingo  Thepla -Masala (Perishable item)  Moong (Sweet)  Cheese Ball  Thepla -Dudhi (Perishable item)  Moong Dal  Tomato Ring  Thepla -Kothmir Marcha  Green Chana Dal  Fudina Ring  Gulla (Perishable item)  Dalmath  Cheese Bits  Vaccum-Bhakhri Methi  Mari Kela Waffer  Kurkure  Vaccum-Bhakhri Jeera  Red Chilli Kela Waffer (Masala/Fudina)  Vaccum-Bhakhri Mari  Nylon Mari Kela Waffer  Nachos  Vaccum-Bhakhri Sada  Nylon Marcha Kela Waffer  Tacos  Vaccum Bajri Methi Bhakhri  Yellow Waffer Long  Dhani Plain  Methi Muthiya (Perishable item)  Karaliyan Yellow Waffer  Chilly Pops  Design Mari Waffer  Cheese Pops  Kharkhadiya (Sweet)  Choco Cubes  Bhadran Moong  Sev Dal  Dry Fruit Dalmath Mamra Peanuts/Chikpeas  Sev Mamra  Khara Chana Other Items  Bhel Mix  Masala Sing (Seasonal) (480 approximately)  Bombay Bhel  Sing Bhajiya  Papadiyu  Fudina Sing Bhujiya  Soya Bhel Mix

Exhibit 6: Factory images, Rakanpur

(Warehouse)

(Khakhra making machine) (Hand-made Khakhra department)

Exhibit 7: Financial Statements of Pushkarvala & Co. as of 2018-2019

PUSHKARVALA AND CO. PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2018

Particulars Schedule For the year ended For the year ended 31st March, 18 31st March, 17 ₹ ₹

INCOME: Sales 155,367,874 127,973,954

Other Income G 659,442 232,652 Total Income 156,027,316 128,206,606

EXPENSES: Cost of Goods Sold H 127,428,846 111,945,170

Employees Benefits Expenses I 5,938,443 3,597,415 Administrative & Selling Expense J 8,726,792 4,691,321 Interest & Financial Charges K 4,240,526 677,133 Depreciation C 4,969,387 3,829,413 Remuneration to Partners 2,979,044 2,201,792 Total Expenses 154,283,038 126,942,244 Profit Before Taxation 1,744,278 1,264,362 Provision for Taxation 640,000 430,000 Net Profit Transfer to Capital A/c of Partners 1,104,278 834,362 Notes forming part of Accounts L

PUSHKARVALA AND CO. BALANCE SHEET AT 31ST MARCH, 2018

Particulars Schedule As on As on 31st March,18 31st March,17 ₹ ₹

Sources of Funds: Partner's Capital A/cs A 26,561,995 24,674,286 Loans & Borrowings Secured Loans B 16,730,343 21,834,662 Total 43,292,338 46,508,948 Application of Funds: Fixed Assets C 35,936,408 37,895,328 Investments D 237,100 237,100 Current Assets Loans & Advances E Inventories 3,037,968 2,849,026 Sundry Debtors 2,296,838 6,155,627 Cash & Bank Balances 5,161,940 2,223,814 Advances & Deposits 1,208,046 2,135,415 Advance Tax & TDS 1,415,237 905,913 Total Current Assets 13,120,029 14,269,795 Less: Current Liabilities & Provisions F Sundry Creditors 4,788,402 5,282,706 Sundry Liabilities 142,797 180,569 Provision for Taxation 1,070,000 430,000 Total Current Liabilities 6,001,199 5,893,275

Net Current Assets 7,118,830 8,376,520

Total 43,292,338 46,508,948 Notes forming part of Accounts L

Exhibit 8: Year-On-Year Growth Model Exhibit 9: Sales figures from 2014 to 2019

YOY % Growth Model 100.00% 88.05% Year Turnover (in INR) %

2018-19 175 million 51.53% h t 50.00% 2017-18 155 million w

o 20.65% r 12.61% 2016-17 128 million G 0.00% 2015-16 85 million 2015-16 2016-17 2017-18 2018-19 2014-15 45.2 million Years

Y-O-Y growth %