SALES AND DISTRIBUTION

MANAGEMENT
ASSIGNMENT

Submitted to: Submitted By:

Dr. Durbha Roy Himanshu Gautam
Ankit Chugg
Reema Das
Company Profile:

Dr. Kurien ushered in ‘White Revolution’ in India with ‘Operation Flood’, the largest project for
dairy development in the world. As a direct result, India became self-sufficient and global leader
in milk production and dairy farmers the architects in their own development.
This revolution led to an increase in milk production many fold which led to the co-operatives
declaring milk holidays around Pune. This adversity was circumvented by Mr. Devendra Shah
(They Founder & Chairman) by helping farmers by collecting their milk on such milk holidays.
And thus was born Parag Milk Foods Ltd.

Gowardhan, founded by Parag Milk and Milk Products Pvt. Ltd in 1992, is one of India's largest
private dairies, with an output capacity of 12,00,000 liters per day. Located in a lush green village called Manchar
in Maharashtra (60 km from Pune), and also owns the largest cow farm in India as they will as Asia's largest
cheese plant. They are an ISO 9000 and AGMARK certified company, committed to international standards of
product quality. Their product portfolio includes Skim Milk Powder, Whole Milk Powder,
Ghee, Processed Cheese, Butter, Dahi, Dairy Whitener and Gulab0020Jamun, Gowardhan Mix powder under the
brand names of Gowardhan ,pride of cows ,top up & Go and all made from
100% fresh cow milk.
Per day approx. 40 tons cheese produced by company.
They have their own 35 acres farm and around 3000 Cows.

• Infrastructure
Company’s peerless success is greatly dependent upon the high tech manufacturing
plant spread over an area of about 50 acres. Companies make use of the technically
advanced equipment and machinery to carry out the varying process like
manufacturing, packaging, etc. They are also backed up by the separate R&D and
QC labs to deliver the exclusive range Dairy Products to the clients.

• Quality Assurance
Company is a prominent name in the entire industry because of the quality of the
products & offer to the clients. A great care is taken to assure the best quality of
products for which they have established a separate and complete QC Lab. Their
experts carry out the task of quality checking in accordance with the set industrial
standards.
Sale Organization structure:
Product/services range:
There are 4 main Products

Product Portfolio of Parag

Product Name Manufacturing Price Selling Price

Full Cream Milk(500 ml) 42 52

Standard Milk (500 ml) 38 46

Toned Milk(500 ml) 35 40

Double toned Milk (500 ml) 28 36

Flavored Milk( 200 ml) 10 15

Matha Salted (200 ml) 8 10

Paneer 200 250

Khova 200 250

Chena Kheer(100 ml) 22 30

Dahi 1kg 50 60

Ghee 1kg 325 400

Butter 1kg 325 400

Territory based (Location Aligarh)
Territory based (Location Aligarh)
Aligarh East Per Day Annual
30000 10800000
Aligarh west
Quarsi chunggi ramghat road 25000 9000000
Aligarh North
Aligarh Bus stand 30000 10800000

Aligarh south
20000 7200000
General store sales
Milk 90000 32400000
Other Products 12000 4320000

Total 207000 74520000

Profit(5%) 10350 3726000
Cost 70794000

Chart Title
Aligarh East
15%
Aligarh west

12%
49% Aligarh North

14%
Aligarh south

10% General store sales

Budget and Budget Allocation

Product costing

ANNUAL
Product Name Manufacturing Price Volume Value Percentage(%)
Full Cream Milk(500 ml) 42 353970 14866740 21%
Standard Milk (500 ml) 38 409860 15574680 22%
Toned Milk(500 ml) 35 404537 14158800 20%
Double toned Milk (500 ml) 28 328686 9203220 13%
Flavored Milk( 200 ml) 10 212382 2123820 3%
Matha Salted (200 ml) 8 442463 3539700 5%
Paneer 200 10619 2123820 3%
Khova 200 7079 1415880 2%
Chena Kheer(100 ml) 22 64358 1415880 2%
Dahi 1kg 50 42476 2123820 3%
Ghee 1kg 325 4357 1415880 2%
Butter 1kg 325 8060 2619378 4%
Total 2288847 70794000 100%

ANNUAL Manufacturing Price

1% Full Cream Milk(500 ml)
3% 3% 3% 1%
2%
Standard Milk (500 ml)
25%
15%
Toned Milk(500 ml)

25% 16%
Double toned Milk (500
4%
ml)
Flavored Milk( 200 ml)
2%
Matha Salted (200 ml)
Budget Allocation
Factory 15%
Plant Operator 3539700 5%
Operator quality control 2123820 3%
dispatch team 1415880 2%
logistic department 3539700 5%
Distribution Channel 10%
Company depot 2123820 3%
distributer 1769850 2.5%
dealer 1769850 2.5%
retailer 1415880 2%
Employee 30%
Regional sales 7079400 10%
area sales mangaer 4247640 6%
sales office 3539700 5%
sales executive 2831760 4%
sales representative 3539700 5%
Sales Promotion 15%
Advertisment 10619100 15%
Product Costing 30%
Raw material 17698500 25%
Packaging and labeling 3539700 5%

Total 70794000 100%

Budget Allocation
2%
3% 1% 1% Factory
1% 3% 2%
1% 5% Plant Operator
3% Operator quality control
3%
50% 2% dispatch team
3%
8% logistic department
13% Distribution Channel
Company depot
distributer
3%
dealer
 SELLING TECHNIQUES

Expand product range in Beverage segment

Dairy products maker Parag Milk Foods expanded its product range with the launch of “Slurp”, a mango
fruit milk juice, as part of plans to become one of the largest FMCG dairy organisations. Parag Milk
Foods Ltd., Chief Marketing Officer, Mahesh Israni said the company had “technology” at the
Palamaner factory to manufacture the fruit juice drinks. The domestic fruit drink market is valued at Rs
10,219 crore of which juice segment constitutes Rs 7,150 crore..

The retailer’s fastest moving dairy product from her shelves is probiotic milk, but other fast-growing
segments include greek yogurts, fresh paneer, farm fresh milk and nut-based milk.

Analyzing demand
The company that introduced a few new sub-categories, such as flavoured yogurt and ready-to-eat
custard, is that many things that were earlier made at home are now bought by urban couples and single
working women. “Young females who are working find it a good idea to get the yogurt or dahi from
outside instead of setting it at home. That means there is an opportunity for commercially produced
yogurt and we are focusing on that opportunity

What sells your product? Added values

Value-added, in fact, is the place where the bulk of the innovations and new product launches are taking
place. Parag Milk Foods have set up cheese production units and facilities to produce Ultra High
Temperature (UHT) milk and milk-based beverages. Since they are already into production of cheese,
they have also tapped into whey protein (a cheese by-product) – much sought after by bodybuilders and
fitness freaks around the globe say Shah of Parag.

Trace your potential customers

Shah of Parag has a word of caution for the new-age dairy companies. He says while India does have
surplus milk for dairy companies to build a robust business, to be successful in India and get the much-
needed volume growth, one has to have a presence in liquid milk. After all,
“The bread and butter have to be milk, the business model will not work,” insists.Discern who exactly
you are marketing to and what segment of the market would be most inclined to purchase your dairy
products. If your dairy products are produced by hormone-free cows that are free to graze and are
provided healthy lifestyles, then you need to determine who these facts will resonate with and who may
be willing to pay a little extra for these features. Families in middle to upper-income brackets are likely to
be your best clientele. Those interested in what goes into the foods and drinks their children consume and
willing and able to pay a little more for your natural and chemical free products are likely a good fit.
Multinationals, on the other hand, are used to operating in a very different way around the globe. In
western markets, dairy companies depend on an ecosystem of large corporate dairy farms and bulk of the
procurement is done from a single farm. The game, in India, is to aggregate milk from many small-sized
farmers, which could lead to inconsistencies in both supply volume as well as supply quality.

More private players are getting into value-added dairy products. Is this the big
opportunity now?
Milk demand is growing by 6 million to 7 million tonnes per year. Last year, we even exported 100,000
tonnes of skimmed milk powder. With increasing disposable income, milk’s product profile is changing
in urban centres. You will see more yoghurt, ice cream, butter and cheese being consumed. Even Amul
has diversified into the value-added segment. Smaller cooperatives are still largely restricted to liquid
milk, though they are diversifying into traditional sweets. With overall growth, we will see more such
diversification. The pasteurised and organised sector is growing base. This is where private players are
also finding space and opportunity.

What are the other opportunity areas?

There is increasing emphasis on health. We are seeing preferences shifting from sugared milk drinks
to chhach or yogurt-based beverages, even slim milk. Cooperatives are already enriching milk with
Vitamin A.
With global dairy majors looking at India as a lucrative investment destination and home-bred dairy
companies all set for the next level of growth, the sector is expected to witness some real action with far
too much place for multiple players to operate. After all, two-thirds of the surplus milk available is still in
the unorganized sector.
 References

 Ajeet Kumar Gupta (Accounts & Finance Manager)

Contact no- 9411210227

Office add:- Parag Milk Dairy, Quarsi chungii Ramghat road Aligarh

 http://www.paragmilkfoods.com