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 Sale for 1 Sale for 2
st

Consumption 15000 22500 19645

Demand 16000 21000 19950

Sales 19560 22000 23500

Stock

qtr qtr

4000 6000 5000

nd

Sale for 3 qtr

rd

Total

57145

56950

65060

15000

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 2 4 month 5 month

1. CALCULATION OF EOQ :
EOQ = 1st qtr EOQ =

2nd qtr EOQ =

3rd qtr EOQ =

= 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 :

=

1st qtr

2nd qtr

3rd qtr

= = 2.6

= = 4.27

= = 3.39

COMMENT: The STOCK TURNOVER RATIO in 1st 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*(

) ( )}

=13894.92*1.64 =22787.66 Working note: COGS = 80270+50000+4000-6000 = 1,28,270 Average Stock = ( 4000+6000)/2 = 5000 We have following information: For demand: Average = 19650 Variances =2532.127 For order: Average = 4.5

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