PARLE GROUP Parle Products was founded in 1929 in British India.

Owned by the Chauhan family of Vile Parle, Mumbai.

The original Parle Company was split into three separate companies owned by the different factions of the original Chauhan family

PARLE AGRO- COMPANY PROFILEFounded in 1984.

Owned by Chauhan Family.

Parle Agro, today, is a '2,500 Cr organization‘

76 manufacturing facilities both in India and overseas

Widespread network of 3,500 channel partners that cater to more than 6 lakh outlets in the country

Beveragesfruit drinks,

nectars, juice, sparkling

drinks

WaterPackaged

drinking water

Foodsconfectionery,

snacks

PET Preforms

4 Business verticals

BEVERAGES MKT. SHAREMAJOR BRANDS

DISTRIBUTION CHANNELSFACTORY

HUB

DEPOT/C&F

DISTRIBUTORS

RETAILERS

WHOLESALERS

Parle Agro Ltd.

CFA

Retail Stockist

Multi-brand Outlet

Customer

DISTRIBUTORS & RETAILERS (UDUPI-MANIPAL REGION)

DISTRIBUTOR : SR Enterprise

RETAILERS: Amita Bakery, Friends General Store, Kini General Store, Shenoy Stores, Manipal Stores, etc.

Product Sales/week (in rs) Distributor's margin Retailer's margin

Frooti / Appy 200000 7% 12-15%

Biscuits 200000 5% 10-12%

Confectionaries 100000 5% 10-12%

Snacks / Wafers 100000 5% 10-12%

Total 600000

CHANNEL POLICIES Distributor

selection

Damage Policy

Distributor order management

Market development

Based on ability to cover the market and Financial stability

Distributor to Retailer : instantly/within 1 week

Parle Agro to Distributor: around 6 months Distributor has to pay by RTGS in advance

Special schemes & offers for retailers and distributors

Quality Auditing Regular quality checks done by Parle Agro- twice a year

DISTRIBUTOR’S PROFILE SR Enterprise Owner: Mr. Sushant Kumar

Location: Parkala

Market covered: Udupi-Manipal-Parkala-

Retailers reach: around 800 retailers

Retailer type: All types (Big, Medium, Small, Wholesaler)

Distribution frequency: weekly

Distribution lines: Parle Agro (80-85%), Nestle and Horlicks

DISTRIBUTION PROCESSBangalore

Manufacturing Unit

C&F

Distributor Ware house (Parkala)

Retailers

Parley Agro

Distributor Ware house

(Parkala)

Retailers

Weekly delivery

Weekly delivery

Advance payment through RTGS/NEFT & Credit

Advance payment through RTGS/NEFT

75%

25%

CHALLANGES

Product delivery – Delivering stock to wide range of retailers (rural

area)

Seasonal demand- Demand of some products, like Frooti is seasonal

(Apr-Jun)

Damage of product- Due to moisturous conditions

Order tracking- To avoid misallocation and reduce unwanted inventory

space

Workforce- Lack of motivated workforce, High attrition rate

Financial AnalysisProducts Sales/week (in rs) Distributor margin

Distributor margin/week

Frooti / Appy 200000 7% 14000

Biscuits 200000 5% 10000

Confectionaries 100000 5% 5000

Snacks / Wafers 100000 5% 5000

Total 600000 34000

Distributor's margin per day Distributor's margin per month

4857.142857 145714.2857

Continue..Assets Value Asset life (in years)

Depreciation per year

Depreciation per month

PC 20000 10 2000 167Van 350000 10 35000 2917AC 50000 10 5000 416

Furniture 20000 10 2000 167Total 440000 40500 3375

Expenses per monthEmployee's salary 70000Rent + electricity 7000

Fuel in transportation 4000Maintenance 2000Miscellaneous 2000Depreciation 3375

Total 88375

Investment

Stock 800000Market credit 150000

Assets 440000Warehouse security 5000Security to company 400000

Total 1795000

Continue..

ROI

For 100% OH allocation 80% OH allocation

38% 50%

ROI = (Net earnings- Expenditure)/Investment

ROI is 38 % p.a. if all the OH is allocated to Parley Agro line only

Whereas ROI is 50% when 80% OH is allocated to Parley Agro line and 20% to Nestle and Horlicks line

INSIGHTS/LEARNINGS Return policy is not good

Changing lifestyle and low salary

PARLE AGRO is taking 6 months to clear returns of distributors

Difficult to maintain workforce

Distributor’s issues PARLE AGRO not paying proper attention despite of annual distributors meet, unresolved issues

Lack of promotion Very less promotional activities by PARLE AGRO through distribution channel in this region

Low Motivation to expand

Workforce issues and flat demand

Slow moving product :

Fast moving product :

Medium moving product :

Thank You !

Questions ?