XAVIER INSTITUTE OF SOCIAL SERVICE

REPORT ON THE SALE AND STOCK

TREND ANALYSIS
OF

SUBMITTED TO:

SUBHOJIT BHATTACHARYA

SUBMITTED BY:

RAMDAYAL BHOGTA

ROLL No. – 42

FINANCE-1, 3rd tri-sem

INTRODUCTION

Parle-G or Parle Glucose biscuits, manufactured by Parle Products Pvt Ltd, are one of the
most popular biscuits in India. Parle-G is one of the oldest brand names as well as the largest
selling brand of biscuits in India. For decades, the product was instantly recognized by its
iconic white and yellow wax paperwrapper with the depiction of a young girl on the front.
Counterfeit companies have attempted to recreate and sell lower quality products of similar
names with virtually identical package design.

The company's slogan is G means Genius. The name, "Parle-G", is derived from the name of
the suburban rail station, Vile Parle which in turn is based on village Parle in olden days
(there is also area called Irle nearby where the Parle Agro production factory is based).

This popular biscuit is primarily eaten as a tea-time snack.

Parle-G is the largest selling biscuit in the world. It has 70% market share in India in the
glucose biscuit category followed by Britannia, Tiger (17-18%) and ITC's Sunfeast (8-9%).
The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more
than 50 per cent of the company's turnover (Parle Products is an unlisted company and its
executives are not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs
3,500 crore (Rs 35 billion). It also is popular across the world and is starting to sell in
Western Europe and USA

HISTORY

In 1929, while India was under British rule, a small company by the name of Parle Products
emerged. A small factory was set up in Vile Parle (east) the suburb of Mumbai to
manufacture sweets and toffees i.e confectionery products(e.g. Melody,kachaa mango bite
etc). A decade later it was upgraded to manufacture biscuits as well.

The goal was to spread joy and cheer to children and adults alike, all over the country with its
sweets and candies. Since then, the Parle name has spread in all directions and has won
international fame. Parle has been sweetening the lives of people all over India and abroad.

Apart from the factories in Mumbai and Bangalore, Parle also has factories in Bahadurgarh,
Haryana and Neemrana, Rajasthan. These are the largest biscuit and confectionery plants in
the country. Additionally, Parle Products also has 10 manufacturing units and 75
manufacturing units on contract.
Availability outside india:

Outside India, Parle-G is available in Europe, UK, USA, Canada, Singapore, etc. In Canada,

it is sold by Zehrs, Food Basics, Loblaws, etc for only 99 cents for a 418 gram pack. It also is
popular across the world and is starting to sell in Western Europe and USA.

Recognition :

The Brand Trust Report, published by Trust Research Advisory in 2011, ranked Parle in the
58th place as the Most Trusted brands of India.

Sales figure for the year 2008-09

Particulars Consumption Demand Sales Stock

Sale for 1st qtr 15000 16000 19560 4000

Sale for 2nd qtr 22500 21000 22000 6000

Sale for 3rd qtr 19645 19950 23500 5000

15000
Total 57145 56950 65060

Additional information :

-The carrying cost per unit is fixed Rs. 0.75 and th ordering cost is Rs. 5000 per quarter

-The labour cost rs.10000 per quarter.

-The closing stock 3rd quarter rs. 6000 respectively.

-The order and the lead given are as follows:

Order lead time

1 4 month
2 5 month
 1. CALCULATION OF EOQ :

EOQ =
√2∗AC∗OC
√ CC
1st qtr 2nd qtr 3rd qtr

EOQ =
√ 2∗15000∗5000 EOQ =
√ 2∗22500∗5000 EOQ =
√ 2∗19645∗5000
√ 0.75 √ 0.75 √ 0.75
= 32714.93 = 17441.86 = 16297.74

COMMENT: The EOQ in 1st quarter is 32714.93 , 2nd quarter is 17441.86 and in 3rd quarter is 16297.74
shows that the stock maintenance of the parle is doing the better sale by decreasing the level of
stock as there is a sharp rise in sales.

2. Stock turnover ratio :

Cost of goods sold

=
Average stock

1st qtr 2nd qtr 3rd qtr

13000 23500 18645

= = =
5000 5500 5500

= 2.6 = 4.27 = 3.39

COMMENT: The STOCK TURNOVER RATIO in 1 st quarter is 2.6 raise to 4.27 2nd quarter is showing
good position of stock but in 3rd quarter it decreases to 3.39 which is a slighter down in stock level ,
do not going to effect the parle sales.

3. Safety stock level:

safety stock = {Z*SQRT(Avg. Lead Time * Standard Deviation of Demand^2 + Avg.

Demand^2 * Standard Deviation of Lead Time^2)}

CALCULATION:
Z = 1.64 for a 95% service level
 Safety stock = {1.64* ( 4.5∗2532.1272 ) +(196502∗0.70712 )}
√
=13894.92*1.64
=22787.66

Working note: We have following information:

COGS = 80270+50000+4000-6000 For demand:

Average = 19650
= 1,28,270 Variances =2532.127
Average Stock = ( 4000+6000)/2
For order:

COMMENT: Once the reorder is placed, the probability that stocks will be depleted before the  new
order arrives