Summer Internship Report

Annexure-III

Jaypee Business SchoolA Constituent of Jaypee Institute of Information Technology(Declared Deemed to be University u/s 3 of UGC Act)A-10, Sector 62, NOIDA, 201 307, INDIA, www.jbs.ac.in

Market Study and Industry Analysis

Corporate Internship Report

Internship Report submitted as a partial requirement for the award of the two yearMaster of Business Administration ProgrammeMBA 2014-16

Name: ABJESH VASUDEVAN14609003

Corporate Internship Supervisor Name: Samarth Chudasama Contact details: +91 869892373914th Floor, 9A Building, DLF Cyber City, Phase-III, DLF City, Gurgaon, Haryana - 122002

JBS-Faculty Supervisor: DR. G. K. AGGARWAL

Start Date for Internship: 16-APRIL-2015End Date for Internship: 11-JUNE-2015

Report Date: 23-JUNE-2015

Self Certification by the Intern

I hereby certify that I, Abjesh Vasudevan have successfully completed my internship with CARGILL INDIA PVT. LTD. in the month of JUNE2015 from (16th APRIL to 11th JUNE 2015).

This is also to certify that this report is an original product and the facts and figures used in this project are authentic and reliable as per my knowledge. I am held responsible for the veracity of such facts and figures.

Name: ABJESH VASUDEVAN

Signature:

Date : 18-06-2015

TABLE OF CONTENTS

ACKNOWLEDGMENT 4

EXECUTIVE SUMMARY 5

COMPANY PROFILE6-13

INDUSTRY ANALYSIS14-20

FINANCIAL ANALYSIS21-29

DETAILED STUDY ABOUT PROJECT 30-44

KEY LEARNINGS45

CONCLUSION & RECOMENDATIONS46

TERMS AND TERMINOLOGIES 47-48

REFRENCES49

ACKNOWLEDGEMENT

It would be wise to commence this report with an expression of gratitude towards all those people who have played an indispensable role in the accomplishment of this project by providing their valuable guidance.

I would like to take this opportunity to acknowledge and thank Cargill India Pvt. Ltd. for providing me this golden opportunity to associate my Summer Internship Project with an organization of worldwide repute.

I extend my gratefulness to Mr.Lalit Kumar Sharma, Regional Sales Manager and Mr. Samarth Chudasama, Area Sales Manager for their help and guidance in various capacities which have been extremely proficient in getting the best out of me by sharpening my rough edges from time to time.

I am deeply indebted to my faculty guide, Dr.G.K.Aggarwal whose help, encouragement and stimulating suggestions helped me in all time of research.

I would be failing in duty if I do not acknowledge the gratitude to all the employees of Cargill India Pvt. Ltd. whomotivated me a lot in carrying out this project and whose valuable suggestions, and kind supervision helped me in the successful completion of this work.

EXECUTIVE SUMMARY

The report is divided into four sections.

It begins with the Introduction to the organization- Cargill and various information related to the firm such as its organogram, Products provided by Cargill and also its vision, mission and goal.

The second section is a detailed industry analysis of the FMCG Industry (Fast Moving Consumer Goods Industry) which shows the market size, market break up, current scenario and Trends followed in the industry. It also covers the information related to the major players of the industry and a detailed SWOT Analysis of the FMCG Industry.

The third section covers the financial analysis of ITC and HUL which are currently considered to be the top 2 brands in FMCG industry. This Financial Analysis reveals its financial performance during its past years. The tools used for financial analysis are ratio analysis and financial analysis.

The fourth section contains the detailed study of the project - Market Study and Industry Analysis.

COMPANY PROFILE

Cargill delivers food, agriculture, personal and commercial products & services to the entire world. Along with farmers, shoppers, authorities and communities, we assist individuals prosper through the use of our skills and experience of 150 several years. We've got 152, 000 workers throughout 67 countries who're dedicated to feeding the planet in a responsible way, lowering ecological effect and improving the communities where most of us reside and work.Cargills operations throughout India started in 1987. We employ more than 2,000 employees working in offices and plants across the country and have a network of warehouses and depots.Cargill offers a range of products and services: We process, refine and market imported and indigenous vegetable oils Serving food industry customers with vegetable oils, fats, blends and bakery shortenings We offer high quality food ingredients to serve food manufacturers and food service industry We originate, process, store, trade and market a wide range of agricultural commodities such as grains, oilseeds, sugar and cotton We offer premix, compound feed and therapeutic care products to nourish animals We provide risk management and financial solutions We offer freight solutions and serve our industrial customers with energy commodities and metal products

VisionOur vision is to bethe leading player in Indian edible oils marketandcreating a distinctive valuefor all stakeholders.

MissionWe will develop and deliver valueadded products, which exceed statutoryrequirements tosatisfy our internal and external customers, bycreating a cultureof continuous improvement and willestablish dominant position in ours chosenmarket, by achieving competitive advantage in all functions and building andretaining a highperforming customer-focused team.ApproachOur approach is to be trustworthy, creative and enterprising.MeasuresOur measures are engaged employees, satisfied customers, enrichedcommunities and profitable growth.HIERARCHY STRUCTURE OF CARGILL INDIA PVT LTD. (Organogram)

Chairman

Director

National sales manager

Regional business manager

Zonal / Regional sales manager

Area sales manager

Senior sales officer

Sales officer

Trainee sales officer

Interim sales representative

Distributor salesman Gregory R. PageExecutive Chairman of the Board David W. MacLennanPresident and Chief Executive Officer Paul D. ConwayVice Chairman Emery N. KoenigVice Chairman and Chief Risk Officer Marcel H. M. SmitsExecutive Vice President and Chief Financial Officer William A. BucknerSenior Vice President LeighAnne BakerCorporate Vice President, Human Resources Patrick E. BoweCorporate Vice President Dave BuchananPlatform Leader David E. DinesCorporate Vice President Michael A. FernandezCorporate Vice President, Corporate Affairs John E. GeislerCorporate Vice President and Chief Information Officer Todd B. HallSenior Vice President Laura WitteCorporate Vice President, General Counsel and Corporate Secretary Thomas M. HayesCorporate Vice President, Operations Thomas J. IntratorPlatform Leader Ruth KimmelshuePlatform Leader Christopher P. MallettCorporate Vice President, Research and Development Paul NaarPlatform Leader Jayme D. OlsonCorporate Vice President and Treasurer K. Scott PortnoyCorporate Vice President Brian SikesPlatform Leader Joe StoneCorporate Vice President R. Wayne TeddyCorporate Vice President Frank J. VanLierdePlatform Leader Peter Van DeursenPlatform Leader Alan WillitsPlatform Leader

CARGILL MANAGEMENT

Businesses of Cargill

Cargill is a provider of food, agricultural, risk management products and various other services in 67 countries globally. Cargill has more than 80 businesses organized in around seven major segments which are as following:

Agriculture Trading & Processing - Cargill Tries to connect different types of producers, users of grains,oil seeds and various other agricultural commodities through the process starting from originating to distribution of services.

Food Ingredients and Products - Cargill serves new food applications and food & beverage ingredients to different food service companies and Food & Beverage Manufacturers.

Meat Poultry and Eggs

Farmer Services - Cargill Provides Customized farm products and services to different crop and livestock producers worldwide.

Animal Feed And Nutrition

Energy and Industrial

Financial - Cargill Provide its customers and even their own businesses with risk management and financial solutions in different type of world markets.

Product Portfolio

Leonardo Olive Oil is the latest entry in the product portfolio of Cargill India. This brand is currently the market leader with a 30% +market share. Leonardo is available in 3 forms-1. EVO2. Pure3. Pomace

Gemini is the pioneer in Sunflower oil category.This brand has a wide range of-1. Soyabean Edible oil2. Groundnut Edible oil3. Cottonseed oil4. Filtered Groundneck Edible oil5. Mustard oil6. Vanaspati

Nature fresh range of oils are available in following forms-1. Refined Soyabean Oil2. Sunflower oil3. Kachi Ghani pure mustard oil4. Nature fresh olive oil5. Nature fresh Shakti6. Nature fresh Palmolein Oil7. Nature Fresh purita

Nature Fresh Chakki Atta is available in @ different sizes of 5 kg and 10 kg.

Sweekar is considered to be the leading premium Sunflower Oil Brand across the country.

Rath can be termed as a Trusted heritage Vanaspati brand because of its 50 years of presence.

In the hydrogenated fats category, Sunflower Vanaspati is termed as an iconic brand.

Distribution Channel of Cargill India Pvt. Ltd.

Manufacturer

C & F Depot

Super Stockiest Distributor

Wholesaler

Retailer

Customer

STP (Segmenting,targeting and positioning of Cargill)

SegmentingManufacturers who need superior quality ingredients, services or expertise

Targeting GroupFoods & beverages manufacturers, animal feed producers, agricultural commodities producer, etc.

PositioningA world class, superior quality food processing and services company

Industry AnalysisFast Moving Consumer GoodsFast Moving Consumer Goods (FMCG) are those products which are lower in cost and they have a quick turnover ratio. FMCG products are the products that can be replaced within an year. FMCG generally includes a wide range of frequently purchased products such as cosmetics, soap, oil, toiletries, tooth cleaning products, detergents and shaving products .It also includes certain non-durables such as bulbs, glassware, paper products, batteries, and plastic goods. FMCG may also include consumer electronics pharmaceuticals, chocolate bars packaged food products, soft drinks, and tissue papers.FMCG sector in India is the fourth largest sector of the Indian economy and this sector creates employment for more than three million people in various downstream activities. Its principal constituents are Personal Care, Household Care, and Food & Beverages.Size of the consumer durables market in India

Consumer durables market is expected to double at 14.8 per cent CAGR to US$ 12.5 billion in FY15 from US$ 6.3 billion in FY10.

The increasing purchasing strength plus the growing affect with the usage of social media in day to day life helped the consumers of India to splurge on various good things. A study completed yes Bank and a leading company states that the consumer spending inside Of India will likely quadruple to US $ 4.2 trillion by 2017.India has the potential to become the world's largest middle class consumer market which would be having approximate consumer spending of US$ 13 trillion by 2030.On the back of better incomes and increasing affordability, the consumer durables market is anticipated to expand at a compound annual growth rate (CAGR) of 14.8 per cent to US$ 12.5 billion in FY15 from US$ 7.3 billion in FY12.Online retailing, both direct and through marketplaces, will grow threefold to become a Rs 50,000 crore (US$ 8.06 billion) industry by 2016, as per rating agency Crisil. Also, the growth of internet retail is expected to boost offline retail stores.

Trends in FMCG revenues over the years in India

The Compound annual growth rate of the FMCG sector is expected to increase to 14.7%. to touch 110.4 billion US dollars till 2020.The rural FMCG market is anticipated to increase at a CAGR of 17.7% to touch 100 billion US Dollars till 2025.FMCG industry is continuing to grow with a good annual average of 11 per cent over the last decade. Food products is the primary portion, constituting 43 % of the whole industry. Personal care (22 %) as well as fabric care (12 %) appear subsequent with regard to industry share. Growing attention, simpler access, as well as changing life styles are the important thing which helps in the growth of the industry.

Market break-up of Indian FMCG industry

FMCG industry is continuing to grow with a good annual average of 11 per cent over the last decade. Food products is the primary portion, constituting 43 % of the whole industry. Personal care (22 %) as well as fabric care (12 %) appear subsequent with regard to industry share. Growing attention, simpler access, as well as changing life styles are the important thing which helps in the growth of the industry.The federal government associated with India's policies as well as regulatory frameworks such as approval of 51 per cent foreign direct investment (FDI) in multi-brand and relaxation of license rules are also responsible for the growth of the Industry .The federal government has also amended the Sugarcane control order, 1966, as well as substituted the Statutory Minimum Price (SMP) associated with sugarcane having Fair Remunerative Cost (FRP) along with the State Advised Cost (SAP).

Per-capita income in India

There exists a large amount of opportunity with regard to expansion in the FMCG industry via rural market segments because it is believed that the demand will increase as more no. of companies penetrate in the market. Also, with the increasing per capita income of the people with time, which is estimated at a CAGR Rate of 7.4% in the time period of 2013-19, the FMCG industry is anticipated to experience a major expansion.

Porters Five Forces(FMCG Industry)

Threat Of New Entry Under the FMCG Industry, there are no proper measures to control the number of new Entrants in the market New Entrants offer tough competition because of cost effectiveness. Hence, we can say that potential entry of new firms is more viable. New Firms can easily enter this industry because of low resistance and the complex structure of the industry. Buyers power Bargaining power of the customers is also very high in FMCG Industry because of the low switching costs associated between FMCG Goods. Customers are usually never reluctant to try and buy new things off the shelf.Suppliers power Bargaining power of the suppliers of raw materials and intermediate goods in FMCG Industry is just medium. Substitute suppliers are available in ample numbers and even the raw materials are also readily available homogeneous in nature. No Monopoly situation arises because the suppliers have to fight between each others too. Threat of substitutes The Never ending needs of the customers can never be met by a single firm alone, Customers have the option to choose one substitute amongst many available substitutes if he is not satisfied by the good. Higher consumers expectation arises because of the wide range of choices.

Competitive Rivalry Rivalry amongst the competitors of the FMCG Industry is very fierce. FMCG Industry is highly saturated and the competitors available try to snatch their market share. The intensity is very high because Market Players use all sorts of tactics from intensive advertisement campaigns to promotions, price wars etc.

Top Companies which deals in the FMCG Sector in India According to the study performed by experts,the top five FMCG brands of India can be as following :1. Hindustan Unilever Ltd.-HUL2. ITC (Indian Tobacco Company)3. Nestle India4. GCMMF (AMUL)5. Dabur India6. Asian Paints (India)7. Cadbury India8. Britannia Industries9. Procter & Gamble Hygiene and Health Care10. Marico Industries

Swot Analysis of FMCG SectorStrengths: Operational costs are low. Both in urban and rural areas, distribution networks are well established. Well-known brands of the market are currently active contributors for FMCG sector.Weaknesses: Especially in small sectors, there is very low scope of investing in technology and in achieving economies of scale Export level is low at present.Opportunities: High Competition is present in all segments of operation. Untapped rural market Rising income levels, i.e. increase in purchasing power of consumers Acquiring other companies. Growing Population in our country, which increases demand simultaneously. Export potential High increasing consumer goods spendingThreats: "Me-too products, which illegally mimic the labels of the established brands. Removal of restrictions on import which is resulting in replacement of domestic brands with others. Demand in rural areas is slowing down. Tax and regulatory structure

Financial Analysis

Cargill India is a privately owned company which is not listed in India thus its financial data was unavailable. As per the guidelines mentioned a similar company of the FMCG Industry was taken and a financial analysis was done the same company and its 1 competitor. The companies chosen are ITC and HUL. For these 2 companies, different financial ratios were calculated and were compared for 2 years.

Calculation of the RatiosFinancial analysis is being done using the following types of Ratios-

Liquidity RatiosThese Ratios can tell us the companys ability to repay the loans which are short termed from the cash available with the firm.

Current Ratio Current Ratio defines the companys ability to meet the obligations in the short term. This Ratio will tell us whether the company will be able to meet the requirements in the next 12 months or not.Current Ratio = Current Assets/Current Liabilities

Current Ratio

ITCHUL

20131.810.98

20141.811.02

Interpretation In 2013 and 2014, ITC has its liabilities 1.81 times. In 2013 and 2014, for every Rs. 1 in current liabilitiesof ITC, ITC has an amount of Rs. 1.81 in current assets. In 2013, HUL has its liabilities more than assets showing that HUL is in debt.

Quick Ratio It is also referred to acid-test ratio or Quick assets ratio, this ratio measures the power of a firm to match its short-run debts by utilizing its most liquid possessions (assets which can be converted in cash quickly). It describes the companys Strengths & weaknesses when it comes to its capability to convert possessions into instant cash even if it was on a short notice.

Quick Ratio = (Cash & Cash equivalents + Short Term Investments + Accounts Receivables) / Current Liabilities

Quick Ratio

ITCHUL

20131.090.65

20141.170.63

Interpretation Higher the Value of the ratio will be, better will be the condition of a corporation/Company. Commonly accepted Quick ratio can be 1 & a situation of Quick ratio of less than 1 isn't considered great as company will never be able to meet its current liabilities at that particular time.Profitability Ratios

These are used to assess the ability of a particular business to generate earning in a particular period of time, as compared to the various costs associated and various other expenses.

Return On Assets (ROA)This will help us know about the returns earned on the total assets of the firm which are employed in the business.

Return on assets = (Net Income + Interest Expenses) / Average Total Assets

Return on Assets

ITCHUL

20130.310.377

20140.6040.377

Interpretation In 2013 and 2014, ITC has a profit of Rs. 3.1 and 6.04 for asset of Rs.1. In both 2013 and 2014, HUL has a profit of Rs. 3.77 for asset of Rs.1.

Return on Equity (ROE)

The Return On Equity will help us know the returns earned by the capital which is provided by the stockholders / Equity holders in the form of Equity.

Return on Equity = Net Income / Average Common Equity

Return On Equity

ITCHUL

20131.3-50.95

20141.3419.32

Interpretation In 2013, The return on equity is in negative for HUL thus it was non beneficial for HUL. In 2014, The return on equity is 19.32 for HUL.

Activity Ratios

Activity Ratios are also known as turnover ratios, these ratios help us to know the efficiency of a corporation to generate revenue by converting the production into sales or cash.

Capital Intensity Ratio

Capital Intensity Ratios measures the Amount of Capital needed per dollar value.

Capital Intensity Ratio = Total Assets / Sales

Capital Intensity Ratio

ITCHUL

20130.80.42

20140.830.46

Interpretation The Higher the Capital Intensity Ratio, more will be the assets needed by the firm as compared to the company with lower capital Intensity Ratio, to generate an equal amount of sales for the firm. Asset Turnover Ratio

Assets turnover ratio actually measures the efficiency of a corporations usage of its assets for its product sales. It measures how efficiently company is promoting its sales by using the assets effectively and efficiently.

Asset Turnover Ratio = Revenue / Average Total Assets

Asset Turnover Ratio

ITCHUL

20131.212.36

20141.192.15

Interpretation We can say that Higher the Asset Turnover Ratio, better it will be. Higher the Asset Turnover Ratio will be, it will tell us that the company is able to produce more revenues per dollar of its assets. And if it is low then, it is the sign for the company to utilize its assets in a more efficient manner or sell them.

Leverage Ratios

Debt Equity Ratio Debt Equity Ratio is also called as Financial ratios.This type of ratios help us to know the proportion of debt and equity used by the company to finance its assets. This ratio measures a firms financial standing, in which it also helps us to know whether an entity will be able to pay off its debts or not.

Debt equity ratio = Liabilities / Equity

Debt Equity Ratio

ITCHUL

20134.138.11

20144.1652.31

Interpretation In 2014, for HUL, the Debt equity Ratio was 52.31 which is the biggest of all values captured here.

Total Debt Ratio

This Total debt Ratio can help us to know any companys extent of taking leverage

Total Debt Ratio = Total Debt / Total Assets

Total Debt Ratio

ITCHUL

20130.761.007

20140.750.98

Interpretation In 2013 and 2014, It shows that for ITC Rs. 76 and 75 is in debt for every Rs. 1 in assets. In 2013 and 2014, It shows that for HUL Rs. 1007 and 98 is in debt for every Rs. 1 in assets.

Thus on comparing both ITC and HUL for two years we can see that by the end of 2013, HUL has the liabilities more than that of assets. Also the price per share of ITC is Rs.9.69. and the gross income for ITC is Rs. 32505 crores , while for HUL it is Rs.25999.16 crores for the year 2013. Also for 2014 the gross income of ITC is R.12659.11 crores while for HUL is Rs. 4799.41 crores which is much less than that of ITC. Thus we can say that ITC is growing at a faster pace than HUL.

Project Market Study And Industry Analysis

PROJECT OBJECTIVESThe Project was given with the following objectives

To determine the retailers as well as customers preferences regarding different oil and Wheat brands available in the market (Noida). To Study the consumers buying behavior and attitudes towards a variety of factors and attributes, which help them in decision-making. To Explore the Potential Outlets in Noida which are currently not covered by the distributors of Cargill India Pvt. Ltd.

ABOUT THE PROJECT

Firstly, For a comparative study, I Shortlisted the major competitors of Nature Fresh in oil and wheat segment which are Ashirwad Atta & Fortune Oil.

Later I went through the process of collecting data, from 802 Retail Counters of whole Noida region, to know the present demand in the market for Ashirwad Atta, Nature Fresh Sampoorna Atta, Fortune oil and Nature Freshs oil.

To make the research more effective in nature, I firstly had gone to the counters which were already being covered by the distributor sales managers of 3 distributors of Nature fresh in Noida and then I personally explored different markets of Noida to get the data from potential uncovered counters.

With this strategy I was able to do the following things which would help the company in many ways:- Get the information about how much demand exists in the market, and how much is being met by the counters which are already covered by distributors.

Explore information about the uncovered counters which have the potential to sell nature fresh goods in a good quantity.(S.R.Os)

Get the information regarding what all factors are affecting nature freshs sales.

Get the information about why other brands are being preferred by some retailers as compared to Nature Fresh. To Discover the Flaws in current working practices of Nature Freshs company-Cargill.

LIMITATIONS TO THE PROJECT ASSIGNED

In this project, the following limitations can be considered:-

Some people were giving wrong information about the quantity sold of Nature Fresh,fortune and Ashirwad.

The survey has been done in Noida only thus we may say that psychological condition and answers may change for other parts of the country.

FMCG is a rapidly changing Industry and the information may vary from season to season.To assimilate the findings the environmental changes occurin constantly should also be kept in mind.

There were several Retail Counters which were not familiar with the name of Cargill or Nature Fresh but they were selling its products.

All the above stated points acted as the barriers to the project and the study has been done in such a way that these limitations were always considered during the whole project.

OBSERVATIONS NOTED DURING THE EXECUTION OF THE PROJECT

1. Nature fresh Sampoornas demand is usually more in the counters which are near to some society as compared to counters available in villages of Noida.2. In Harola Village, All Shops used to deal with our distributors but now they have stopped it because of Various problems such as- DSM was not visiting regularly. Expired products were not being replaced by the company. Distributor was quoting a very high price for the products of Cargill.3. Retailers dont prefer to keep or sell our wheat because we dont replace the damaged products, whereas it is being done by our competitor - Ashirwad.4. There is a huge difference between the branding done by Ashirwad and nature fresh,Ashirwads boards, banners, name boards Advertisements are being placed at most of the markets of Noida.(including rural areas)5. In Rural areas, such as Khorha Village and other villages Mahakosh has done good branding. Every potential SRO has his name board on mahakoshs advertisement.6. Places such as Salarpur Village and Barola Village have a great number of counters with nature fresh advertisements on its board. Thus we can say the Branding done over these areas is very good.7. Some counters covered by Venus Enterprises complained that they wanted nature fresh boards on display in their shops, but that was not being provided by Cargill.8. Venus Enterprises sell our products purely on relationship basis.9. In Khorha Village & other Villages there are various Wheat Brands which are preferred for selling by the retailers, which are as following - Parrot Takat Kanak Gopal Bhog Life Ok Chapati Gold Yes bhog Super Hathi Brand Rasoi Jain Ankit Dwarika

10. In Morna Village, 98% of the retailers are buying our products from kondli (Delhi).11. In Gijhor Village, only 4-5 out of 25 shops are being covered by our distributors.12. In Gijhor Village, retailers had complained that there is a lot of price discrimination done by the distributor for retailers.13. Retailers in rural areas complain that they prefer other brands because there is very less margin in our products.14. Retailers get to know the price offered by other distributors, so this creates problem in selling as they feel they are being cheated .15. Retailers said that Ashirwad salesmen are very much dedicated to their work, they will make sure to come any how at their time and will definitely take the orders.16. Our Dsms avoid contacting new counters such that they could also sell our products.17. Parmeshwari & sons is also dealing in selling ruchi gold , fortune oil and one more local brand of oil. This directly or indirectly will affect our sales in a negative sense. 18. Anhal Traders also sell Priyagold Biscuits, when the DSM goes to any counter, they first ask the order for priyagold biscuits, when they get any order from the retail counters, the DSM gets satisfied and does not put in more efforts to get the orders for nature fresh.19. Retailers said that they will prefer selling nature fresh only if they get good margin and good delivery by the distributor as many retailers faces this problem that sometimes the order is not being delivered for weeks.20. Retailers complained that the DSM does not come everytime. Some time he comes and sometime he doesnt.

DATA ANALYSIS AND FINDINGS1) Total counters covered by different distributors in all over Noida and total number of Uncovered Counters in Noida according to the data collected by me.

Anhal Traders163

Parmeshwari & Sons102

VENUS ENTERPRISES181

Grand Total446

Total uncovered counters found = 802-446 = 356 Counters

Venus Enterprises covers the maximum Number of counters across Noida as compared to Parmeshwari & Sons. and Anhal Traders.

And, There are still 356 Counters to be covered by Cargill India Pvt. Ltd. Out of These 356 counters, many counters can prove out to be our potential S.R.Os.

2) Ashirwads and Nature Freshs Total Availability at Retail counters across whole Noida.

Ashirwad AttaAshirwads total availability at various counters in Noida

no231

YES535

Out of the total Covered outlets under the Project, Ashirwad Covers 535 counters.

Nature Fresh Sampoorna Atta

Nature fresh's total availability at various counters in Noida

NO437

YES331

Out of the total Covered outlets under the project, Nature Fresh Sampoorna Covers only 331 counters.

3) Total Quantity (in Kg) in which Ashirwad atta and nature Fresh sampoorna atta is sold in the markets of Noida.

Total Quantity of Ashirwad Atta Sold9373 X 50 = 468650 kg

Total Quantity of Nature Fresh sampoorna Atta Sold2220 X 50 = 111000 kg

As compared to Nature Fresh, Ashirwad Atta is available at more number of counters across Noida and thus we can clearly see a huge difference in the quantity of ashirwad atta Sold and Nature Fresh sampoorna sold, the reasons behind this issue as found during the Execution of the project can be as following-

1) There is a huge difference between the branding and advertisements done by Ashirwad as compared to Nature fresh. This directly affects the demand of the Nature fresh in a negative way.

2) There are several Retail Counters which does not take interest at all to sell the goods produced by Cargill because of the following problems as quoted by them -

Expired products are not being replaced by Cargill. DSM of Nature Fresh was not visiting regularly but the Ashirwads DSM makes sure to come regularly. Distributor was quoting a very high price for the products of Cargill. The Distributor of nature fresh practices the concept of price discrimination to such an extent that some retailers loose faith in the distributor. Whereas, Ashirwads distributor is more Loyal and professional in business practices.

4) Total No. of Counters in which Fortune is available.

FORTUNE

Fortune not available82

Fortune is Available682

Out Of the Total Counters covered during the project, It was seen that Fortune is available at total 682 Retail Counters.

5) ) Total No. of Counters in which Nature Fresh oil is available.

Nature Fresh oil

Nature fresh oil Not available 272

Nature Fresh oil is available492

Out Of the Total Counters covered during the project, It was seen that Nature Fresh Oil is available at total 492 Retail Counters.

6) Total Quantity ( in litres ) in which Fortune Oil and Nature Fresh Oil is sold in the markets of Noida .

Total Quantity of Fortune Oil Sold10678 x 12 = 128136

Total Quantity of Nature Fresh Oil Sold6711 x 12 = 80532

It was Noticed during the project, that, Retailers do prefer selling Cargills Various types of oil including Refined, Mustard Oil and Vanaspati. Nature Fresh gives a tough competition to all the other brands in this oil segment of the market.

Still the Sale of Fortune Oil is more because of its good image in the market from a long time. It has been able to create a good name in the market for both the retailers and consumers.

It can be said that there were many Retail Counters which were only selling fortune oil because according to them customers would come and only prefer buying Fortune oil.

Whereas, the retail counters where Nature Fresh was sold, Retailers commented that they had to convince the customer to try nature fresh oil, customers didnt ask for nature fresh by themselves.

LEARNINGS

Under great pressure, how one should be able to do the daily operations.. Managerial capabilities as we had to Deal with the DSM, who accompanied us as well as the Retail counters. The skill of convincing people. Importance of Relationship Building and Good communication Skills. The basic knowledge regarding how FMCG sector functions at the very base level. How to increase sales . Importance of Team Work. Good Leadership skills and its impact. How to analyze data with an analytical approach and fetching useful information from the raw data. How to cover an untapped market where complete reach was not there previously. Factors which indirectly affects the sales but which affects the visibility of products in the market.

CONCLUSIONS AND RECOMMENDATIONS

1. All the potential S R Os should be identified and proper tie ups and benefits should be given to them while doing business with them. 1. It is very important for Cargill to regularly invest in advertisements in print media and television media such that customers start trusting and demanding Cargills product.

1. The company should try to make Such distributors which are only selling products of Cargill India Pvt. Ltd. But not the goods produced by other competitors of the FMCG Industry.

1. The problem of Leakage should be noticed very carefully and efforts should be made such that the Retailers are not facing any loss because of leakage problem.

1. Noida has many villages in it, Cargill should start focusing on these villages more in future.

1. There should be a separate employee hired just to do visual merchandising for the products.

1. Higher Officials should time to time visit the market and should take feedbacks from their customers and retail counters.

1. Instead of doing more of paper work, technology usage should be promoted during basic operations even.

1. There should be proper Interaction with the retailers as well as customers whenever any scheme is introduced for the retailers & customers they should be made aware of it. Sales representatives should be given guidelines to intimate each and every retailer of his area about the schemes.

1. Whenever any scheme is introduced by the company, efforts should be made to make it confirmed that the information regarding these schemes are communicated to the target audience.

1. Non-Monetary incentives should be given to the retailers associated with the Distributors which would help in increasing their spirits to sell Cargills products.

Terms and Terminologies Used

Beat - It Include the names of all the Retail Stores a person is supposed to visit on a particular day.

Super Stockiest - For the manufacturer, a stockiest acts as a local delivery point in the market. Stockiest buys the products from the manufacturer directly in huge quantities then further he break bulks, and distribute the goods to the distributors and retailers in the market.

Carrying & Forwarding Agents- Carrying & Forwarding agents commonly known as C & F agents work on a commission basis and basically deals with every aspect of storing the goods.

Distributor- Distributor performs the same function of super stockiest and thus acts as a local delivery point for the manufacturer.

Wholesalers- A wholesaler purchases the goods from the stockiest or the distributor and further sells them to the retailers..

ISR stands for Interim Sales Representative who are basically the employees of the company and are also on the payroll of the company. Their work is to carry out the sales operation in their territory.

DSM- Distributor Sales Manis basically the employee of the distributor,he is on the payroll system of the distributor and not on the payroll of the company. Their work is also to carry out the sales operation in their territory.

Primary Sales- Sales of goods from the company to the super stockiest or the distributors.

Secondary sales- Sales of goods done from super stockiest or distributors to the wholesalers or retailers.

Productive outlets- Outlets which are actually selling the products of Cargill India Pvt. Ltd.

Unproductive outlets- Outlets which are not selling products of Cargill India Pvt. Ltd.

Potential Outlets-Outlets which have the potential to sell the products of Cargill India Pvt. Ltd.

ANNEXURES Balance Sheet of ITC as at 31st March 2012-2013March 2013(in crores)March 2012(in crores)

EQUITIES AND LIABILITIES

Capital of shareholder790.16781.84

Surplus and Reserves22367.72 23157.9018676.74 19458.58

Minority Interests179.89157.09

NON-CURRENT LIABILITIES

Long term borrowings90.80105.38

Deferred liabilities1213.59882.03

long term liabilities40.4750.48

Long term provisions144.75 1489.61119.63 1157.52

CURRENT LIABILITIES

Short-term borrowings-1.89

Payables of trade1771.561538.37

Other Current Liabilities3560.033429.02

Short-term Provisions5194.39 10525.984359.10 9328.38

TOTAL35353.3830101.57

ASSESTS

Non-Current Assets

Fixed Assets

Tangible Assets11728.459578.95

Intangible Assets100.54120.01

Work in Progress capital2041.372388.87

Under Development Intangible Assets20.667.59

13891.0212095.75

Less: Provision for assets given on lease5.675.67

13885.3512089.75

Goodwill on consolidation316.51314.13

Non-current investments814.17765.02

Deferred tax assets24.1116.26

Long term Loans and advances1246.301096.13

Other non-current assets1.24 16287.681.24 14282.53

CURRENT ASSETS

Current investments5167.114441.81

Inventories7522.096426.87

Trade Receivables1395.761200.20

Cash and cash equivalents3828.303130.12

Short-term loan and advances529.61484.17

Other current assets622.83 19065.70135.87 15819.04

TOTAL35353.3830101.57

Profit and Loss Statement of ITC for year 2012-2013March 2013(in crores)March 2012(in crores)

Gross Income45012.4537747.71

Revenue from sale of goods and services43920.7636617.45

Less: Excise Duty12597.3110437.93

Net Revenue from sales of goods and services31323.4526179.52

Other Operating Revenue304.09345.91

Revenue from Operations31627.5426525.43

Other Income877.60784.35

Total Revenue32505.1427309.78

Expenses9069.827808.75

Cost of material consumed

Purchases of stock in trade3305.231921.18

Changes in inventories of finished goods[256.84][85.74]

Employee benefit expenses2145.631935.11

Finance costs87.1880.50

Depreciation and amortization expenses859.11745.48

Other expenses6189.365736.35

Total Expenses21399.4918141.63

Profit before tax11105.659168.15

Tax expense:

Current Tax3088.052777.57

Deferred Tax324.0268.19

Profit after tax7693.586322.39

Less: Minority interest96.3875.53

Share of net profit of associates10.8711.28

Profit for the year7608.076258.14

Earnings per share ( face value Rs. 1 each)

BasicRs. 9.69Rs.8.05

DilutedRs. 9.58Rs.7.96

Balance Sheet of HUL as at 31st March 2012-2013March 2013(in crores)March 2012(in crores)


Share Capital216.25216.15

Reserves and Surplus2457.773296.78


Other long term liabilities476.25329.69

Long term provisions706.25666.95

CURRENT LIABILITIES

Trade Payables5167.694622.96


Short-term Provisions1872.021278.97

TOTAL11512.4710958.27

ASSESTS

Non-Current Assets

Fixed Assets



Capital Work in Progress205.32205.13

Intangible Assets under Development10.3210.32


Deferred tax assets (net)204.73214.24


Other non-current assets296.84-

CURRENT ASSETS




Cash and bank balances1707.891830.04


Other current assets70.7435.25

TOTAL11512.4710958.27

Profit and Loss Statement of HUL for year 2012-2013March 2013(in crores)March 2012(in crores)

REVENUE FROM OPERATIONS27283.5923181.09

Less: Excise Duty[1473.38][1064.72]

Revenue from Operations, net25810.2122116.37



EXPENSES

Cost of material consumed10284.668584.89


Changes in inventories of finished goods[31.13]128.73






Profit before exceptional items and tax4349.483350.16

Exceptional items608.40118.87


Tax expense:

Current Tax[1167.59][784.52]

Deferred Tax[9.45][0.76]

Tax adjustments, net15.837.65



BasicRs.17.56Rs.12.46

DilutedRs.17.55Rs.12.45

Balance sheet for ITC for year 2013-2014-

March 2014(in crores)March 2013(in crores)



Reserves and Surplus25466.70 26262.0221497.67 22287.85


Long term borrowings51.0066.40

Deferred tax liabilities (NET)1296.961203.72


Long term provisions110.00 1463.05125.62 1398.85

CURRENT LIABILITIES

Short-term borrowings0.14-




TOTAL39229.3934017.43

ASSESTS

Non-Current Assets

Fixed Assets



Capital Work in Progress tangible assets2272.941472.80


14308.4712697.13


Long term Loans and advances1480.02 18300.661727.97 16425.96

CURRENT ASSETS




Cash and cash equivalents3289.373615.00


Other current assets1019.69 20928.73641.36 17591.47

TOTAL39229.3934017.43

Profit and Loss Statement of ITC for year 2013-2014-


Gross Income48175.8043044.21

Gross Revenue from sale of goods and services46712.6241809.82

Less: Excise Duty13830.0612202.24

Net Revenue from sales of goods and services32882.5629605.58

Other Operating Revenue356.04295.69

Revenue from Operations33238.6029901.27



Expenses










Tax expense:

Current Tax3791.132934.79

Deferred Tax82.77331.00



BasicRs. 11.09Rs.9.45

DilutedRs. 10.96Rs.9.33

Balance Sheet of HUL as at 31st March 2013-2014-




Reserves and Surplus3060.782457.77



Long term provisions838.69706.34

CURRENT LIABILITIES




TOTAL12998.4011512.47

ASSESTS

Non-Current Assets

Fixed Assets



Capital Work in Progress312.08205.32



Deferred tax assets (net)161.73204.78


Other non-current assets0.68296.84

CURRENT ASSETS




Cash and bank balances2220.971707.89


Other current assets71.9170.74

TOTAL12998.4011512.47

Profit and Loss Statement of HUL for year 2013-2014-


REVENUE FROM OPERATIONS27283.59

Less: Excise Duty[1473.38]

Revenue from Operations, net25810.21

Other Income606.90

Total Revenue26417.11

EXPENSES









Profit before exceptional items and tax4799.714349.48

Exceptional items228.68608.40


Tax expense:

Current Tax[1293.15][1167.59]

Deferred Tax[24.83][9.45]

Tax adjustments, net157.0815.83



BasicRs.17.88Rs.17.56

DilutedRs.17.87Rs.17.55

REFERENCES

http://www.cargill.co.in/en/index.jsphttp://www.moneycontrol.com/india/stockpricequote/cigarettes/itc/ITChttp://www.moneycontrol.com/india/stockpricequote/personal-care/hindustanunilever/HUwww.google.comhttps://en.wikipedia.org/wiki/Cargill

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