PARLE GROUP

Parle Products was founded in 1929 in British

India.
Owned by theChauhan familyofVile
Parle,Mumbai.
The original Parle Company was split into three
separate companies owned by the different
factions of the original Chauhan family

PARLE AGRO- COMPANY PROFILE

4 Business verticals

Founded in 1984.
Owned by Chauhan Family.
Parle Agro, today, is a '2,500 Cr
organization
76 manufacturing facilities both
in India and overseas
Widespread network of 3,500
channel partners that cater to
more than 6 lakh outlets in the
country

Beverag
es
fruit
drinks,
nectars,
juice,
sparkling
drinks

Water
Packaged
drinking
water

Foods
confection
ery,
snacks

PET
Preform
s

BEVERAGES MKT. SHAREMAJOR BRANDS

DISTRIBUTION CHANNELS
FACTORY

Parle Agro Ltd.

HUB

CFA

DEPOT/C&F

Retail Stockist

DISTRIBUT
ORS
RETAILERS

WHOLESALE
RS

Multi-brand
Outlet
Customer

DISTRIBUTORS & RETAILERS

(UDUPI-MANIPAL REGION)
DISTRIBUTOR : SR Enterprise
RETAILERS: Amita Bakery, Friends General Store, Kini General Store, Shenoy Stores, Manipal
Stores, etc.
Product

Sales/week (in rs)

Distributor's
margin

Retailer's
margin

Frooti / Appy

200000

7%

12-15%

Biscuits

200000

5%

10-12%

Confectionaries

100000

5%

10-12%

Snacks / Wafers

100000

5%

10-12%

Total

600000

CHANNEL POLICIES
Distributor
selection
Damage Policy

Based on ability to cover the market and

Financial stability
Distributor to Retailer : instantly/within 1 week
Parle Agro to Distributor: around 6 months

Distributor order
management

Distributor has to pay by RTGS in advance

Market
development

Special schemes & offers for retailers and

distributors

Quality Auditing

Regular quality checks done by Parle Agro- twice

a year

DISTRIBUTORS PROFILE
SR Enterprise
Owner:

Mr. Sushant Kumar

Location: Parkala
Market covered: Udupi-Manipal-ParkalaRetailers reach: around 800 retailers
Retailer type:

All types (Big, Medium, Small, Wholesaler)

Distribution frequency: weekly

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

DISTRIBUTION PROCESS
Bangalore
Manufacturing
Unit

Parley Agro
Advance payment through
RTGS/NEFT

C&F
Weekly delivery

Distributor
Ware house
(Parkala)

Distributor
Ware house
(Parkala)

Weekly delivery

Retailers

Retailers

Advance payment through

RTGS/NEFT
75%
&
25%
Credit

CHALLANGES
Product delivery Delivering stock to wide range of retailers (rural area)
Seasonal demand- Demand of some products, like Frooti is seasonal (Apr-Jun)
Damage of product- Due to moisturous conditions
Order tracking- To avoid misallocation and reduce unwanted inventory space
Workforce- Lack of motivated workforce, High attrition rate

Financial Analysis
Products

Sales/week (in
rs)

Distributor
margin

Distributor
margin/week

Frooti / Appy

200000

7%

14000

Biscuits

200000

5%

10000

Confectionaries

100000

5%

5000

Snacks / Wafers

100000

5%

5000

Total

600000

34000

Distributor's margin per day

Distributor's margin per month

4857.142857

145714.2857

Continue..
Assets
PC
Van
AC
Furniture
Total

Value
20000
350000
50000
20000
440000

Expenses per month

Employee's salary
70000
Rent + electricity
7000
Fuel in transportation
4000
Maintenance
2000
Miscellaneous
2000
Depreciation
3375
Total
88375

Asset life (in

years)
10
10
10
10

Depreciation
per year
2000
35000
5000
2000
40500

Depreciation
per month
167
2917
416
167
3375
Investment

Stock
Market credit
Assets
Warehouse security
Security to company
Total

800000
150000
440000
5000
400000
1795000

Continue..
ROI = (Net earnings- Expenditure)/Investment
ROI
For 100% OH allocation

80% OH allocation

38%

50%

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

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

INSIGHTS/LEARNINGS
Return policy is not good

PARLE AGRO is taking 6 months to clear

returns of distributors

Difficult to maintain
workforce

Changing lifestyle and low salary

Distributors issues

PARLE AGRO not paying proper attention despite

of annual distributors meet, unresolved issues

Lack of promotion

Very less promotional activities by PARLE AGRO

through distribution channel in this region

Low Motivation to expand

Workforce issues and flat demand

Slow moving product :

Medium moving product :

Fast moving product :

Thank
You !

Questions ?