Professional Documents
Culture Documents
SUBMITTED IN FULFILLMENT OF
THE REQUIREMENT FOR THE AWARD OF
MASTER OF BUSINESS
ADMINISTRATION (MBA)
SUBMITTED TO SUBMITTED BY
MR. TARIQUE SIDDHIQUI VIRENDRA PANWAR
H.O.D. MBA (3RD SEM)
GIMT, Gr. Noida ROLL NO. 0709470116
GALGOTIAS INSTITUTE OF MANAGEMENT & TECHNOLOGY
1, KNOWLEDGE PARK, PHASE-II, GREATER NOIDA
TABLE OF CONTENTS
• Acknowledgement
• Preface
• Introduction
• Company Profile
• Research Methodology
• Objective
• Scope
• Sample size
• Data Sources
• Conclusion
• Recommendations
ANNEXURE
Bibliography
Acknowledgement
I would like to express my sincere gratitude towards Galgotias
Institute of Management & Technology, Greater Noida for
providing me the opportunity to work and learn through this end-term
project.
VIRENDRA PANWAR
MBA (3RD SEM)
Preface
This project had been undertaken for “Impact of ITC on FMCG
Sector”.
In order to gather the most appropriate and accurate data survey was
conducted in various location and markets in Saharanpur. The data
was assimilated with the help of a questionnaire aimed and designed
to extract the most correct and conclusive information.
The consumers were requested to fill the questionnaire and were also
asked various other relevant questions revealing detailed information
apart from that in the questionnaire.
The survey was conducted successfully and its findings have been
studied, analyzed and have led to a conclusion, included in the report,
which could prove to be fruitful for the project.
OBJECTIVES
"ITC" to many small business owners is one of the more visible and tangible
aspects of doing business. Raw materials, goods in process and finished
goods all represent various forms of inventory. Each type represents money
tied up until the inventory leaves the company as purchased products.
Likewise, merchandise stocks in a retail store contribute to profits only when
their sale puts money into the cash register.
In a literal sense, inventory refers to stocks of anything necessary to do
business. These stocks represent a large portion of the business investment
and must be well managed in order to maximize profits. In fact, many small
businesses cannot absorb the types of losses arising from poor inventory
management. Unless inventories are controlled, they are unreliable,
inefficient and costly.
EXECUTIVE SUMMARY
The title of the project is “Study Of Systems Practices & Structure Of Companies
For Snack Food with Relevance to Convenience Channel & compare it with ITC.
companies for snack food with relevance to convenience channel & compare it
with ITC. . The focus of this research is to find out how other companies like lays
and haldiram its major competitors what practices are they following, what is their
distribution network like how many variants do they have in the snack food
distributors are there in specific regions for a particular company, their delivery
their norms, schemes billing methods, order structure, cash and credit facility etc.
surveys with distributors and salesman of snack food. The main focus of the
research was on Bingo, as, it has been launched recently. Another factor was to
analyze how ITC would regain its bench mark impression and since ITC has
diversified itself in various sectors, how to overcome the problem that salesman
understand how ITC differs from its competitors in its sales practices.
The location of research is Noida, Faridabad and Ghaziabad. And in these
locations I covered the distributors of Lays, Haldiram and ITC. I also had a
meeting with the sales officer of Lays at Noida and found out about its working,
During the research I discovered that the total wafer market of India comprises of
The findings state that how each distributor differs from each other in terms of
number of salesman that they have, total number of outlets that they cover, size
of go down, number of SKU’s that each company has in the snack food segment,
the margin that the companies are giving to their distributors and retailers, the
average number of outlets covered by each salesman in a day, and also how do
recommendations have also been made for better promotions and effective sales
of the product.
INTRODUCTION
The idea behind this project was to do a extensive study of systems, practices,
and structures of select companies for snack food, with relevance to convenience
channel and compare it with ITC. The scope of the project involved the following
Ordering, delivering and cash collection models- people& processes. – under this
I had to cover the distributors profile, that is their location and number. What are
the loctions where the distributors are located and hoe many of them are there in
number for each region and each company.secondly I had to understand the
infrastructure that the distributors are using like mechanized and non mechanized
units which includes three wheelers, rickshaw, mopeds, cycles etc.Then I had to
know about the margins that the various companies are giving to their distributor
and retailers.Then I had to study about the coverage plan, which involves the
total number of outlets that the distributors cover in their regions for respective
companies, and what is their mode of transportation, through which they cover
these outlets. Then I ha d to find out the frequency of service that the salesmen
cover, that is how many times in a week is one salesman covering a particular
outlet.I had to also find out about the no of sku;s and varients that each of these
companies have.Then I had to know about the norms and delivary process of
various companies, what norms do the distributors have to follow set by the
company, and what is their delivary process. Then I had to find out about the
cash and credit collection method that the distributors are giving to the retailers.I
had to also find out about the billing methods and the various sehemes that the
companies are giving to the consumers.Apart from this I had to also find out
about the stock rotation , and damage stock replacement policies of the
billion.
Rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's
Business Today, ITC ranks third in pre-tax profit among India's private sector
corporations.
other FMCG products. While ITC is an outstanding market leader in its traditional
rapidly gaining market share even in its nascent businesses of Packaged Foods
source of inspiration "a commitment beyond the market". In his own words: "ITC
believes that its aspiration to create enduring value for the nation provides the
ITC's diversified status originates from its corporate strategy aimed at creating
time, the strategic forays into new businesses are expected to garner a
ITC is one of the country's biggest foreign exchange earners (US $ 2.8 billion in
farmers through the power of the Internet. This transformational strategy, which
has already become the subject matter of a case study at Harvard Business
management systems. ITC was the first company in India to voluntarily seek a
ITC employs over 21,000 people at more than 60 locations across India. The
4,88,000 shareholders, fulfill the aspirations of its stakeholders and meet societal
its corporate positioning statement: "Enduring Value. For the nation and for the
shareholder.
HISTORY AND EVOLUTION
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. Its beginnings were humble. A leased office on Radha
Bazar Lane, Kolkata, was the centre of the Company's existence. The Company
celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land
situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the
sum of Rs 310,000. This decision of the Company was historic in more ways than
one. It was to mark the beginning of a long and eventful journey into India's
that plot of land two years later, would go on to become one of Kolkata's most
Retailing and Greeting Gifting & Stationery - the full stops in the Company's
name were removed effective September 18, 2001. The Company now stands
• Though the first six decades of the Company's existence were primarily
• In 1975 the Company launched its Hotels business with the acquisition of
Chola'.
• The objective of ITC's entry into the hotels business was rooted in the
concept of creating value for the nation. ITC chose the hotels business for
India.
division merged with the Company's Tribeni Tissues Division to form the
(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to
improve customer service with reduced lead time and a wider product
range.
British joint venture. Since inception, its shares have been held by ITC,
its name was changed to Surya Nepal Private Limited (Surya Nepal).
cigarette industry. The merged entity was named the Tribeni Tissues
The Division is today one of India's largest exporters. ITC's unique and
million farmers. ITC's first rural mall, christened 'Choupal Saagar' was
quality greeting cards under the brand name 'Expressions'. In 2002, the
Autograph books and Slam books. In the same year, ITC also launched
products.
business with the Wills Sport range of international quality relaxed wear
for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and
Wills Clublife evening wear (2003). ITC also initiated a foray into the
popular segment with its men's wear brand, John Players, in 2002. In
• In 2006, Wills Lifestyle became title partner of the country's most premier
fashion event - Wills Lifestyle India Fashion Week - that has gained
recognition from buyers and retailers as the single largest B-2-B platform
for the Fashion Design industry. To mark the occasion, ITC launched a
• In 2000, ITC spun off its information technology business into a wholly
Infotech has already crossed over US$ 60 million in revenues. It also has
a joint venture with ClientLogic, a top five global Business Process
entered the confectionery and staples segments with the launch of the
entered the biscuits segment. ITC's entered the fast growing branded
• In just six years, the Foods business has grown to a significant size with
market standing.
of the entire value chain found yet another expression in the Safety
Matches initiative. ITC now markets popular safety matches brands like
marked the manifestation of its partnership with the cottage sector. ITC's
value for the shareholder and for the nation. It has a rich organisational culture
rooted in its core values of respect for people and belief in empowerment. Its
competitive.
by blending the diverse skills and capabilities residing in ITC are various
businesses.
“Sustain itc’s position as one of India’s most valuable corporation through world
class performance, creating growing values for the Indian economy and the
Chewing tobacco is an age old heritage. The ritual of relishing the taste of
tobacco has been a practice in Asian and the Far-Eastern civilizations. The
traditional way of preparing the chew is very cumbersome and unhygienic.
BABA, the nation’s first saffron flavoured chewing tobacco is the flagship
brand of the group that has set global benchmarks for quality, since 1929.
Popular internationally for its refined taste, spiced with aroma, saffron and
silver flakes, BABA boasts of unwavering customer loyalty across the
world.
Eco-Friendly
Consumer Convenience
Paper Bottom
Another innovation, which shook the market and gave a refreshing, fruity
break!
Yet another nation’s first, Catch Clear Flavoured Spring Water ! Made from
finest blend of flavours of natural fruits and sparkling spring water.
Tantalizing with six delightful flavours – Lime n Lemon, Black Currant,
Peach, Mango, Green Apple and Strawberry, with more exciting flavours in
the pipeline – it also appeals to the health-conscious by being a totally
caffeine-free, calorie-free & sugar-free drink!
Catch Club Soda
Made from hygienically processed Catch Natural Spring Water and bottled
at the in-house state-of-the-art plant, that ensures retention of its discerning
taste and fizz, Catch Club Soda tastes best till the very last drop.
Silver & Gold Foil
The DS Group has been a pioneer in bringing the best of technologies and
world-class solutions to India. Silver Foil division of DS joined hands with
Wallner, Germany to abolish the primitive and cruel method of manually
beating silver pieces between intestines of animals. The collaboration
introduced the process of electronically beating silver between a special
paper, in a hygienically controlled dust free atmosphere.
Apart from Silver Foils, DS has started manufacturing Gold Foils. The
beauty of these foils lie in their purity. The Gold foils are made from 24
Carat Gold. The process of making Gold Foils is almost similar to Silver
Foils. DS is the only producer of 100% pure and vegetarian Silver & Gold
Foils for the first time in India and our plant is the largest in the world.
CATCH JALJEERA
Catch Natural Spring Water is the only Indian bottled water brand, which
has been tested and certified to comply with Food & Drug Administration
(US) Code of Federal Regulations by NSF International, the world's leading
independent organization dedicated to public health, safety and protection of
the environment.
Low-temperature Grinding
Technology : What makes
Catch spices, spicier than
anything else ? It is the state-of-the-art Low Temperature Grinding
Technology (LTG). Choicest ingredients are grounded at a very low
temperature, thus preventing evaporation of volatile & delicate oils from
spices. Thereby, bringing to you the original aroma of the finest Indian
exotica and its wholesome flavour.
Catch Snacks
Catch Snacks are packed in special composite cans. Besides being exported
to leading stores internationally, they are also available at select outlets in
India.
Catch Indian Tonic Water, Once again, a first of its kind product – India’s
first zero calorie tonic water in PET bottle. The market literally lapped up
this innovative beverage and the response from the discerning individuals is
highly encouraging.
CONTACT US
Please enter details about yourself in the form below, and go on to give us
your feedback. Your feedback will help us serve you better.
BOARD OF DIRECTORS
COMPANY SECRETARY
AUDITORS
BANKERS
State Bank of India
Bank of Baroda
Punjab National Bank
Jammu & Kashmir Bank
Andhra Bank
Corporation Bank
Citibank
ICICI Bank
Standard Chartered Bank
REGISTERED OFFICE:
CORPORATE OFFICE:
Ravinder Kumar
Chairman
Rajiv Kumar
Managing Director
"Our philosophy is
of moving up the
value chain by
integrating supplier
competencies to
help increase
efficiency and
productivity"
Puesh Kumar
Director
DOUBLE MAZAA
It gives yet another reflection of the fact that we at DS, consistently seek to
enhance your enjoyable experiences through our unique product offerings.
Two such institutions which have benefited from this endeavour are the
Anglo Sanskrit Victoria Jubliee Senior Secondary School and the
Commercial School, located at Daryaganj in Delhi.
The schools have been maintaining a place of pride in the academic circles
of Delhi, since 1869. These temples of learning have produced a galaxy of
scholars, doctors, engineers, administrators, politicians and business tycoons.
DS Punjabi Kala Sangam
Punjabi Kala Sangam has instituted Kala Shree awards to give a fillip to
remarkable talents in spheres of cinema, television, radio and fine arts.So far,
over 700 renowned artists from diverse backgrounds have been felicitated
with this award, giving DS an opportunity to acknowledge and honour their
rich contributions in the field of Indian art and culture.
KNOW US
• DS - At a Glance
• Our Founders
• Vision & Mission
• Core Management Group
• Over The Years
• Key Facts and Figures
OUR BUSINESS
• Tobacco
o BABA Flavoured Chewing Tobacco
o TULSI ROYAL Flavoured Chewing Tobacco
• Pan Masala
o RAJNIGANDHA Flavoured Pan Masala
o TULSI ROYAL GOLD Saffron blended Pan Masala
o Toofani
• Pan Masala having Tobacco
o TULSI MY MIX
o TULSI MIX ’0’
BEYOND BUSINESS
• DS Charitable Trust
• DS Punjabi Kala Sangam Awards
• Improving Life in the North East
• Swasthyagram
CAREERS
REACH US
• Corporate Office
• Manufacturing Plants
• Key Regional Offices
• Contact Us
Improving Life in North East
We wish to make this unexplored part of India into a future industrial hub
for India, catering to the entire South East Asian economy.
Because, like business, care & development too does not have any
boundaries.
SOCIAL & CHARITABLE ACTIVITIES
• Actively participated and contributed towards the flood
relief activities in Nagaon, Morigaon & Nalbari districts of
Assam by providing relief material to the affected families
• Contributed Rs. 11 lacs to the Chief Minister’s Relief
Fund for flood relief in Assam.
• Contributed Rs. 1 crore in Chief Minister’s Relief Fund
for Tsunami relief
• Financial assistance to Army Wives Welfare Association
(AWWA) for the welfare of war widows of Assam
• Construction of the Science Laboratory and teacher’s
common room and toilets at Margherita College, Tinsukia -
Assam
• Donated computer and furniture to schools in rural areas
of Upper Assam
• Donated computer furniture to Department of Zoology,
Guwahati College
• Constructed city bus passenger waiting shed near
Guwahati College
• Donated CGI sheets to Sonapur College, Guwahati for
construction of a college building
• Main contributor for construction of under ground water storage tank
for fire fighting at Bamunimaidan Industrial Estate
• Erection of steel made plaques of the Battle of Saraighat and
development of the North Brook Gate at Sukreswar Park, Guwahati
• Reconstruction of wall around the pond & brass fencing around the
steps, construction of a gate at the Ganesh Temple and construction of
Sitlamai Mandir, Installation of Air circulation system and Water
filtration unit at the Maa Kamakhya Temple
• Aiding for construction of Kirtan Ghar at Sarthebari in lower Assam
• Contributing in construction and marble work at Ganesh Temple near
Guwahati High Court
• Aiding in reconstruction of boundary wall of the Jyotinagar Mosque
• Financial contributions for organizing Elephant festival at Kaziranga
Wild life Sanctuary in Assam to promote Wild Life Preservation
• Contribution for renovation of the Kaziranga Heritage IB at Baguri
prior to the celebration of the centenary of the Kaziranga National
Park
• Felicitating Outstanding Foresters on the eve of Kaziranga Centenary
Celebration with cash awards
• Co-sponsor for Indo- Asean car rally
• Sponsored R.G. Baruah Memorial 15th All India Open Body Building
Competition Mr. Saraighat 2004”
• Aiding Jyotinagar Sangha to construct their office building and
gymnasium
• Sponsorship of Prag Cine Awards 2003 & 2004, constituted to
promote Assamese films and artists
• Sponsorship of Jyotirupa Drama Competition & Media Awards” for
excellence in Film, Television & Music
With transparent dealings, we endure value, that in turn delivers that 'extra'
to all our stake holders.
The Net Worth of DS Group has grown phenomenally over the last few
years.
The manufacturing locations of the group is spread across the country with
major concentration in the North Eastern part of India.
NAZAKAT
The Persian influence followed by the Mughal reign in India brought style,
luxury and a new appetite of culinary exotic’s, with dinners usually ending
with a pair of paan .
Nazakat aims to fill the gap offering a nostalgic taste, elegant and tasteful
mix of pan masala and tobacco with an exquisite perfume blend for those
preferring a discerning royal taste.
NEW PROJECTS
FLEXIBLE PACKAGING
Flexible packaging and printing is the fastest growing segment of the
packaging Industry worldwide. The efficient use of raw materials and high-
tech product protection that can be achieved using flexible packaging has
made it the most popular form of packaging both in India and the world. The
converted flexible packaging market is estimated to be at 6 lac MT valued at
approximately Rs.12000 crores and is growing at a rate of 15% annually.
The high growth rate can be attributed to the rise in demand of branded food
and other products thereby leading to increased demand by the FMCG
companies who are trying to increase penetration in the rural market with
cost efficient, small size packs.
The good quality laminate printers and packagers are mostly located in the
Northern and Western part of the country and it is difficult for them to cater
the requirements of Eastern and North Eastern markets at competitive rates.
The manufacturers in Eastern and North Eastern region do not have the
state-of –the-art machines as well as technology, which thereby gets
reflected in the product quality. One the other hand, the presence of FMCG
companies in the North East has increased with excise exemption in place.
The printing, packaging and lamination plant would be equipped with state-
of-the-art technology of printing, lamination, slitting and pouching providing
a complete packaging solution. The company has taken keen interest to
equip the plant with latest R&D facilities so as to meet the changing
requirements of the industry and to be the pioneer in introducing innovative
packaging solutions.
The civil work at the site has already started. The plant is expected to be
functional in the last quarter of financial year 2005-06 and will provide
employment to over 200 persons.
The proposed rubber thread unit is being set-up using the latest European
technology, which is recognized as one of the best sources for HRLRT
technology in the world. The unit will be a model unit in the region and will
generate direct employment for over 200 people. The company aspires to
become the largest player in the country in this segment with a total installed
capacity of 20,000 MT annually.
CONFECTIONARY
The potential within Indian markets has propelled foreign brands to enter
India. DS Group realizing the potential is aggressively planning to diversify
in the field of confectionary because of it's natural and coherent strength in
distribution. In search of a formidable international brand a joint venture has
been formalized with the world's leading confectionary giant "LOTTE"
group of Japan.
HOSPITALITY
In line with our long-term business plan and keeping in view the
opportunities available in the hospitality sector, DS has decided to foray into
the Hotel Business. We propose to have a large chain of business hotels
across India for which we plan to have strategic business alliance and
management tie-ups with hotel chain of international repute. The company
already has its presence in the sector with “Manu Maharani”, which is a
premium hotel in Nainital.
REAL ESTATE
India has a vast untapped potential in the sector of real estate development
and is on its way to become a desired location for international real estate
investors and developers. The sector reflects its impact on the GDP whereby
every rupee spent adds Re. 0.78 in the GDP. The sector also affects 250
related ancillary industries and is the second highest employment generator
in the country. The Real Estate Sector in India has seen a wide spectrum of
changes : for starters, developers have realized the merits of transforming
into corporate functioning and enhancing transparency in terms of their
financials. The Real Estate market is growing at an annual rate of 30 per cent
with steady growth in residential properties, shopping malls, multiplexes,
food outlets, office spaces, convention and business centers across India.
Diversification and consolidation in the Real Estate Sector has been a part of
DS long-term strategic imperative. Keeping in view the present potential in
the sector of land banking, the company has embarked upon a plan to
acquire strategic sites in Delhi NCR region and land adjacent to Gurgaon-
Jaipur highway. The company intends to foray in the field of colonising and
developing the acquired land in the near future and as a first step intends to
develop a residential and commercial property on 600 acres land near
Gurgaon.
The Persian influence followed by the Mughal reign in India brought style,
luxury and a new appetite of culinary exotic’s, with dinners usually ending
with a pair of paan .
Nazakat aims to fill the gap offering a nostalgic taste, elegant and tasteful
mix of pan masala and tobacco with an exquisite perfume blend for those
preferring a discerning royal taste.
Born on 01-01-1901, Call it coincidence. Or call it destiny. Birth of a legend
Shri Dharampal Ji, remains the dawn of a new era.
1987 : Foray into F&B, Catch Salt & Pepper sprinklers launched.
2002 : Catch adds fizz with the launch of Catch Club Soda.
2005 : Catch Spring Cola, Lime & Orange give a refreshing change
Mouth Freshener
1999 : PASS PASS - Saunf-date fruit assorted fun mix refreshes the nation.
Hospitality
Retail
Rubber
2004 : DS & Lotte, Japan formed a joint venture to produce and market
confectionaries
Real Estate
International Alliance
2004 : DS & Process Engineering, Italy for providing technology for Heat
Resistant Rubber Thread project.
PASSPASS
PASSPASS is the story of a brand that has created a new product category
altogether.
The nation's first ever, branded healthy assorted mix, PASSPASS offers the
freshness of hand-picked quality dry dates, saunf(fennel), coconut, saffron,
silver coated cardamom seeds, coriander seeds, melon seeds, natural
sweetener and herbs. With its fresh and crunchy feel it is the right mix for
guilt free indulgence.
Art and acumen. Emotion and enthusiasm. Passion and perfection. Packed
together since 1983 ... Nothing compares to RAJNIGANDHA.
It is available in vacuum packed cans, that ensure longer shelf life, and
longer retention of its exquisite aromatic fragrance.
Rajnigandha is available in 1.6 gm, 4 gm, 8.5 gm, 18 gm, 50 gm, 100 gm,
250 gm and 1000 gm pack sizes.
Need creates demand, a long felt need and aspiration of millions got fulfilled
in Toofani.
Making a spectacular foray into the popular category, Toofani caught the
imagination of the market in no time. A unique blend of choicest ingredients
at ‘easy-to-afford’ prices gave Toofani Flavoured Pan Masala its distinct
place in the crowd.
Toofani with its unique taste and flavour entices the gutsy. With a aroma
which gives to drool and a pleasure which lasts long, Toofani is the favorite
with all.
SWASTHYAGRAM
The peaceful environs, amongst which the center is developed, augment the
therapeutic effects of the treatment offered. Thus, preserving the tradition for
the next generations.
SWASTHYAGRAM
The peaceful environs, amongst which the center is developed, augment the
therapeutic effects of the treatment offered. Thus, preserving the tradition for
the next generations.
Tulsi Mix ‘0’ is a blend of tobacco and Pan Masala that offers complete and
long lasting satisfaction. Spiced with specially prepared natural perfumed
compound, made with extracts of fresh flowers, tobacco, betelnut, catechu
and lime.
Tulsi Mix combines the right blend with quality customized to suit diverse
regional palates.
TULSI MY MIX
My Mix, is a mix of pan masala and tobacco to give you a perfect blend,
ensuring a lasting satisfaction.
Made with natural ingredients like, raw tobacco, betel nut, catechu and lime
powder blended with specially prepared natural perfumed compounds.
TULSI has been created after years of research for that perfect flavour and
enticing aroma. Made from fresh and natural ingredients like tobacco flakes,
vegetarian silver foil, permitted spices, saffron and added flavours, Tulsi
gives an excellent taste for instant satisfaction,long-lasting flavour and
fragrance.
TULSI has been created after years of research for that perfect flavour and
enticing aroma. Made from fresh and natural ingredients like tobacco flakes,
vegetarian silver foil, permitted spices, saffron and added flavours, Tulsi
gives an excellent taste for instant satisfaction,long-lasting flavour and
fragrance.
TULSI has been created after years of research for that perfect flavour and
enticing aroma. Made from fresh and natural ingredients like tobacco flakes,
vegetarian silver foil, permitted spices, saffron and added flavours, Tulsi
gives an excellent taste for instant satisfaction,long-lasting flavour and
fragrance.
TULSI has been created after years of research for that perfect flavour and
enticing aroma. Made from fresh and natural ingredients like tobacco flakes,
vegetarian silver foil, permitted spices, saffron and added flavours, Tulsi
gives an excellent taste for instant satisfaction,long-lasting flavour and
fragrance.
Made with natural and herbal ingredients like choicest tobacco & betel-nuts,
catechu, lime powder, cardamom, menthol, delectable flavors, specialty
herbs and permitted spices, TULSI ROYAL GOLD with BABA 600 reigns
supreme.
Tulsi Royal Gold pan Masala offers a succulent taste of richness and royalty
reflected in its unsullied blend of choicest tobacco and pan masala embroiled
in flavoring saffron which augments the taste to make it fit for the majestic
desires.
Made with natural and herbal ingredients like betel-nuts, catechu, lime
powder, cardamom, menthol, delectable flavors, specialty herbs and
permitted spices, Tulsi Royal Gold pan Masala offers a real royal taste, fit
for a king! “ Jiyo Maharaja style”
REACH US .....
In case you have any further queries, please feel free to mail us at:
ds@dsgroupindia.com
or
shweta.sarkar@dsgroupindia.com
Shweta Sarkar
Executive
Corporate Communications
DS Group
A - 85/86, Sector 2
Noida - 201301
India
Tulsi Royal Mix Pan Masala with Tulsi ’00’ is a perfect mix of power and
pompous taste blended to pamper your taste buds. Pledging to deliver the
strength and punch of tobacco alongwith a perfect mélange of pan masala
which spells the grandeur of eloquent vigor, lingering freshness and
mellowed smoothness.
.We are proud to have build strong Indian brands and sustained their
leadership over the years - and are proud to share with you some of our
competencies, which constitute the backbone of our success across
diversified sectors.
Continuous investment into research & development forms the very elixir of
the DS Group. Be it developing indigenous technologies or embracing
international technological solutions -we ensure that any product from our
stable sets global benchmarks in innovation & quality.
.We are just providing instances of some of our recent projects, set up by us :
Effectively backing this wide reach is an efficient logistics and supply chain
management-which continuously strives to establish a productive synergy
amongst various suppliers all over the world as well as timely delivery of
raw materials and finished products across various outlets. The initiative is
further supported by an extensive ERP implementation across all our
manufacturing bases as well as key depots-thus helping us to constantly
monitor & adapt to changing market parameters almost with real-time
effectiveness.
.We are proud to have build strong Indian brands and sustained their
leadership over the years - and are proud to share with you some of our
competencies, which constitute the backbone of our success across
diversified sectors.
Continuous investment into research & development forms the very elixir of
the DS Group. Be it developing indigenous technologies or embracing
international technological solutions -we ensure that any product from our
stable sets global benchmarks in innovation & quality.
For us, innovation & enjoyment begins at our work place! We believe in
grooming each of our team member to be the Messenger of Joy. And to help
him spread enjoyment all across, DS has implemented a well-thought
Leadership Model-which brings transparency, collective wisdom,
performance orientation & minimum response time.
THE RESEARCH
Research Objective -To suudy the systems, practices and structures of selective
companies for snack food in convenience channel and compare it with ITC.
Research Plan
Research Instruments: Questionnaires (closed end & open end questions have
been used)
One of the most important aspects of inventory control is to have the items
in stock at the moment they are needed. This includes going into the market
to buy the goods early enough to ensure delivery at the proper time. Thus,
buying requires advance planning to determine inventory needs for each
time period and then making the commitments without procrastination. For
retailers, planning ahead is very crucial. Since they offer new items for sale
months before the actual calendar date for the beginning of the new season,
it is imperative that buying plans be formulated early enough to allow for
intelligent buying without any last minute panic purchases. The main reason
for this early offering for sale of new items is that the retailer regards the
calendar date for the beginning of the new season as the merchandise date
for the end of the old season. For example, many retailers view March 21 as
the end of the spring season, June 21 as the end of summer and December 21
as the end of winter.
Part of your purchasing plan must include accounting for the depletion of the
inventory. Before a decision can be made as to the level of inventory to
order, you must determine how long the inventory you have in stock will
last. For instance, a retail firm must formulate a plan to ensure the sale of the
greatest number of units. Likewise, a manufacturing business must formulate
a plan to ensure enough inventory is on hand for production of a finished
product.
Well planned purchases affect the price, delivery and availability of products
for sale.
_____________________________________________________________
CONTROLLING YOUR INVENTORY
of the price ticket when the item is sold. The manager can then use the
stub to record the item that was sold.
At time of delivery
1. Verify count -- Make sure you are receiving as many cartons as are
listed on the delivery receipt.
2. Carefully examine each carton for visible damage -- If damage is
visible, note it on the delivery receipt and have the driver sign your
copy.
3. After delivery, immediately open all cartons and inspect for
merchandise damage.
1. Do not request features or quality that are not necessary for the items'
intended use.
2. Include full descriptions of any testing to be performed.
3. Include procedures for adding optional items.
4. Describe the quality of the items in clear terms.
The following actions can help save money when you are stocking
inventory:
1. Substitution of less costly materials without impairing required
quality;
2. Improvement in quality or changes in specifications that would lead to
savings in process time or other operating savings;
3. Developing new sources of supply;
4. Greater use of bulk shipments;
5. Quantity savings due to large volume, through consideration of
economic order quantity;
6. A reduction in unit prices due to negotiations;
7. Initiating make-or-buy studies;
8. Application of new purchasing techniques;
9. Using competition along with price, service and delivery when
making the purchase selection decision.
22.1 INTRODUCTION
Inventory generally refers to the materials in stock. It is also called the idle
resource of and enterprise. Inventories represent those items which are in the
form of materials which are yet to be utilised .
3. To meet the demand during the replenishment period; The lead time
for procurement of materials depends upon many factors like location
of the source, demand supply condition etc. So inventory is
maintained to meet the demand during the procurement
(replenishment) period.
5. Economy in purchasing.
(ii) Handling costs: Costs associated with moving the items such as
cost of labour, equipment for handling.
(iv) Extra cost associated with urgent, small quantity ordering costs.
(3) Lead time.: The length of time between placing an order and
receipt of items is called lead time.
There are tow major costs associated with inventory. Procurement cost
(ordering cost) and inventory carrying cost. Annual procurement cost
varies with the number of orders. This implies that the procurement
cost will be high, if the item is procured frequently in small lots. The
procurement cost is expressed as Rs./Order.
Inventory Models
Deterministic Probabilistic
(Models assuming certainty)
Re-order point
Expected demand
Safety Stock
Actualtime
Lead demand Time
The service level of inventory thus depends upon the level of safety
stocks. Larger the safety stocks, there is lesser risk of stock out and hence,
higher service level. Sometimes higher service levels are not desirable as
they result in increase of costs, thus fixing up a safety stock level is critical.
Using the past date regarding the demand and lead time data, reliability of
suppliers and service level desired by the management, safety stock can be
determined with accuracy.
The inventory pattern with safety stock and variation in demand and
lead time is shown in Fig.
Re-order point
Safety Stock
The inventory systems are developed to cope with the situations where
the demand or lead time or both with flucturate. the basic approach to
all stock control methods is to establish a re-order level which, when
reched would indicate the signal for the replenishment action. Thus
the replenishment of the inventory means determining the quanitity to
be ordered and the time of ordering.
Advantages
Limitations
(ii) The stock leves records and usage rate data are to be
maintained.
This system has a fixed ordering interval but the size of the order
quantity may vary with changes in demand .
In this system .
2. Stock is reviewed at periodic interval and the quantity (Q) which will
bring the iventory to maximum level is orderd.
Comparison between Fized Quantity (Q) and Fixed Peirod (P) System
Q-System P-System
• Lead time.
• Usage rate.
Classification Criteria
2. H.M.L. Analysis (High, Low, Unit price of the material (it does not
Medium) depend upon consumption)
Statistica reveal that just a few items account for bulk of the annual
consumption of the materials. These few itemsare called A class items
which hold the key to business.
INVENTORY CONTROL
B class items: These items are generally 10-15 per cent of total items
and represent 10-15 per cent of the total expenditure on materials.
These are intermediate items. These are intermediate items. The
control on these items should be intermediate between A and C items .
C class items: These are about 70-80 per cent in number and constitute
only 5-10 per cent total expenditure on materials.
These items being less expensive does not require strict control.
These are ordered in bulk as against infrequent ordering of A class
items.
ADVANTAGES OF ABC Analysis
ABC analysis is not one time exercise and items are to be reviewesd
amd recategprosed periodically.
1. Calculate the total inventory value for each item held in inventory
by multiplying the num-ber of units used in a year by its unit price.
3. Prepare a table showing item No. unit cost, annual units consumed
and annual rupee value of units used.
4. Compute the running total item by item for the items and aldo for
rupee value of consump-tion.
Vital items are those items the unavailability of which will stop the
production.
Essential items are those items whose stock out costs are very high.
Desirable items will not cause andy inmmediate production stoppages and
their stock out costs are nominal.
This analysis is mainly carried out to identify critical items. An item which
may belong to C-category may be critical from production point of view.
the service level for each item may be determind and the inventory
can be plannerd accordingly.
2. S.D.E. analysis : S.D.E. analysis classifies the items into three groups
namely - Scarce, Difficult and Easy. these are based on the problems
of procurement.
3. S.D.E. analysis : S.D.E. analysis classifies the items into three groups
namely - Scarce, Difficult and Easy. These are based on the problems
of procurement.
Easy classification covers those items which are readily available and
easy to procure. These are mostly commercially available standard
items .
4. HML analysis : this analysis is similar to ABC analysis but here the
criteria is 'price' instead of usage value.
The items in this analysis are classified into three groups, i.e. high,
low and medium. The management decides the cut off lines or prices
for the three categories. this analysis helps to keep control over
consumption as per the price and helps to assess storage and security
requirements i.e. the high priced items are to be stored in the
cupborads. It helps to outline the buying policies and to delegate
authorities to buyers.
5. FSN analysis : All the items in the inventory are not required at the
same frequency. Some are required regularly, some occasionally and
some very rarely.
FSN analysis classifies items into fast moving, slow moving and non-
moving.
2. The basic question which arises is: why a firm holds inventories?
There are two basic motives for holding inventories :
(i) for speculative purposes, and
(ii) To enable a constant rate of output flow.
It sometimes happens that the value of stock increases over time
at a rate which is higher than the cost of holding stocks. This is mainly
true in a situation of inflation. The decision to hold inventories for
speculative purposes would depend on the expectations of price
increase vis-à-vis the holding cost of inventory which includes the
capital costs and the cost of storage. Only if the expectation of price
increase is higher than the holding cost it is fruitful to hold stocks. The
expected price increase and the opportunity cost of capital tie up as
inventory; however introduce an element of uncertainty in the
calculation of return from speculative inventories.
3.
Few Applications
of
Inventory Control
ii. Buffer inventories: - These inventories are held to prevent stock out
due to uncertain demand and supply fluctuations. An organization is
generally aware of the average demand for various items it needs.
However, the actual demand may exceed this average demand. Hence,
inventories may be held in excess of the expected demand. Similarly,
the average delivery time of an inventory is known to the
organization. However, unforeseen events may cause the actual
delivery time to be more than the expected time. Thus, excess stock
(also called safety stock) is held to meet fluctuations in demand and
lead time.
iii. Lot size or cycle inventories. These inventories are held due to the fact
that orders are placed in lots rather than purchasing the exact amount
of inventory which may be needed at a point of time. Of course, if all
purchases are made on an as-needed basis, there would be no cycle
inventories by ordering or producing in large lots to achieve reduced
ordering or set up costs or to obtain quantity discounts on the items
purchased.
viii. Inventory Decisions. The corporate managers must take two basic
decisions in order to accomplish the functions of inventory. The
decisions made for every item in the inventory are :
(i)- How much amount of an item should be ordered when the inventory
of that item is to be replenished?
Deterministic Probabilistic
(viii) Inventory control also helps the firm in tiding over the demand
fluctuations. Since demand fluctuations are taken care of by keeping a safety
stock by the firm, inventory control aims at keeping the cost of maintaining
safety stock minimum.
3. In an endeavor to keep the inventories low, the fast moving and the
slow-moving stock may be indiscriminately suppressed. This would
result in (lower inventory of slow-moving items than needed and)
higher stocks for the fast-moving items than needed.
Besides the above causes which are more or less controllable, stocks
may also arise owing to cancellations of orders and minimum quantity
stipulations by suppliers.
5. Sometimes when the market is temptingly favorable or there is a
temporary short age, then the organizations tend to overbuy stocks
without considering the forecast or proper estimate of demand.
mentality prevails a lot and things like beliefs, notions spread like wild fire through
word of mouth. The following example is typical of a rural area. Somebody buys a
Hero Honda Motorcycle and finds it satisfactory. When he had bought the bike,
even then there was curiosity among his friends and neighbours about its
endorse that brand. Then two or three of his friends may end up buying Hero
Honda bike and others looking at a few Hondas may decide that it is the vehicle
they would buy. In fact, people thereafter stop questioning the pros and cons of
accept the popular notion that Hero Honda is the best bike and anybody with the
least knowledge about bikes and their mechanisms would strongly advocate
buying a Hero Honda bike. Similarly is the case for snack foods. They may not
have actually tried to check whether the product is good or not but by just talking
So the best way to launch any new brand is to encourage usage by a few
samples like we did for Aashirwaad Aata during its launch in urban areas. The
free samples should be directly given to the consumer and not through a retailer,
who may in fact sell it. If the initial users like the brand, they will turn into opinion
makers and testify the brands excellence, which is the best endorsement
possible.
A peculiar thing that I found in rural areas is that people hardly ever go to a shop
and ask for a brand by its brand name. Mostly they hold out the required price,
point to a particular shelf and name the product. The shopkeeper either by
conversation is as follows:
The customer holds out the money and says, “Give a soap”, the shopkeeper
takes out the brand costing that much. If it is Rs 7.00 he knows that the customer
wants Nirma soap. If the customer doesn’t have change and only a ten-rupee
note, in the above case, he would ask “Give me a seven rupee soap”. This also
shows why the rural consumer would prefer to see the price prominently
Another interesting thing is the use of a brand name for an entire product family.
For e.g., the use of Surf washing powder to describe the entire range of washing
powders. The use of Dalda for the entire vegetable oil family or the use of Tata
for Salt. This shows the strength of the communication even though the product
As is human nature, anything new attracts human attention and curiosity. This
isvery much evident in urban areas. People pay attention towards anything
newthat goes around them. Hence there is nothing like a urban activity to
with a van showing popular films and the brands advertisements or simply
one person passing through the town in an vehicle and announcing any
any such activity if they are near at hand and not busy. Thus any activity is
which a child on a swing was hanging nearly upside down. This very simple
ad aroused the curiosity of a lot of people due to the oddness of it. They
liked the picture with the child, but were curious about its upside down
alignment. Many questioned the supervisors, who were present while the
displays were being put up, as to why the display was being put upside
high. The Aamir Khan ad for Coca Cola is liked because of its very novel
and humorous approach in introducing the five rupees bottle. The urban
Though something new, odd or strange arouses the curiosity of the rural
that it is not misinterpreted by them. There is a thin line between something being
novel and pleasant to something that is alien to the rural consumer. We should
way to generate curiosity about a brand. Once a rural person sees a price
irrespective of the magnitude of price (if its wellabove what he can afford),
he will be curious to know why that particular brand costs that much. So
even if he sees a high priced motorbike’s ad, he’ll pay attention to the
lack of communication and low literacy, because of which some people may not
know where to read the price on a pack. Especially with snack foods, there is a
not buy packs, so they do not know the price. Indeed, in most of the places,
people simply prefer to hold out the required money as the price of the brand
they know of, instead of asking the shopkeeper the price. Hence price should be
The aim of a communication is to make the person try the product. A celebrity ad
definitely increases the desire to use the product. So using a Govinda or Sunny
Deol will definitely increase the awareness of Geep battery and Farmtrac
Tractors respectively but more and more people will only start buying it if the
experience of the initial users must be satisfactory. In short the product should be
well liked because of the way Aamir Khan was utilized in the ad. Here was an ad
that was already on the successful path, because it was using a celebrity, so it
was bound to get attention. But the way Aamir Khan promoted the product is also
remarkable. He was used in the ad to do something that the rural audience would
sit up and notice. Following are the reasons why the ad was so successful apart
8. Increase the number of distributors so that more area can be covered and the
frequency of service can be increased.
9. Try and cover more outlets in ghazizbad, because lays covering more outlets
in this region.
ANNEXTURE
1. How many number of distributors are there in a particular region for particular
company
50 100 200 400
2. How many go down does the distribute have, and what is its size -.
3. How many mechanised and non mechanised units do they have.
MECHANISED –
NON-MECHANISED P –
4. What is the total number of outlets the distributor covers-
5. How many outlets does a salesman cover in a day. –
6.What is the margin of the retailers and distributor –
7.What is the delivery process –
8.What schemes are the company offering –
9.How do they differentiate between their town/village working –
10.What are the norms that they have to follow –
11.What is their cash and credit policy –
12.What is their expiry policy –
13.How do they do the billing –
14.What are the location of the distributors –
15.One shop is covered how many times in a week –
16.What is the total number of salesman a distributor has –
BIBLIOGRAPHY