XAVIER INSTITUTE OF SOCIAL SERVICE

SUBMITTED TO:
SUBHO1IT BHATTACHARYA

SUBMITTED BY:
RAMDAYAL BHOGTA
ROLL No. - 42
FINANCE-1, 3
rd
tri-sem





kLCk1 CN 1nL SALL AND S1CCk
1kLND ANALSIS
CI
INTRODUCTION
Parle-G or Parle Glucose biscuits, manuIactured by Parle Products Pvt Ltd, are one oI the
most popular biscuits in India. Parle-G is one oI the oldest brand names as well as the largest
selling brand oI biscuits in India. For decades, the product was instantly recognized by its
iconic white and yellow wax paperwrapper with the depiction oI a young girl on the Iront.
CounterIeit companies have attempted to recreate and sell lower quality products oI similar
names with virtually identical package design.
The company's slogan is G means Genius. The name, "Parle-G", is derived Irom the name oI
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 Iactory 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 Iollowed by Britannia, Tiger (17-18) and ITC's SunIeast (8-9).
The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more
than 50 per cent oI the company's turnover (Parle Products is an unlisted company and its
executives are not comIortable disclosing exact numbers). Last Iiscal, Parle had sales oI 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 oI Parle Products
emerged. A small Iactory was set up in Vile Parle (east) the suburb oI Mumbai to
manuIacture sweets and toIIees i.e conIectionery products(e.g. Melody,kachaa mango bite
etc). A decade later it was upgraded to manuIacture 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 Iame. Parle has been sweetening the lives oI people all over India and abroad.
Apart Irom the Iactories in Mumbai and Bangalore, Parle also has Iactories in Bahadurgarh,
Haryana and Neemrana, Rajasthan. These are the largest biscuit and conIectionery plants in
the country. Additionally, Parle Products also has 10 manuIacturing units and 75
manuIacturing units on contract.



Availability outside india:
utside India, Parle-G is available in Europe, UK, USA, Canada, Singapore, etc. In Canada,
it is sold by Zehrs, Food Basics, Loblaws, etc Ior only 99 cents Ior 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 oI India.


SaIes figure for the year 2008-09
ParticuIars Consumption Demand SaIes

Stock
SaIe for 1
st
qtr 15000 16000 19560

4000
SaIe for 2
nd
qtr 22500 21000 22000

6000
SaIe for 3
rd
qtr 19645 19950 23500

3000


TotaI 57145 56950 65060
3000

AddlLlonal lnformaLlon
1he carrylng cosL per unlL ls flxed 8s 073 and Lh orderlng cosL ls 8s 3000 per quarLer
1he labour cosL rs0000 per quarLer
1he closlng sLock 3
rd
quarLer rs 6000 respecLlvely
1he order and Lhe lead glven are as follows
Crder lead Llme
4 monLh
2 3 monLh


CALCULA1ICN CI LC
CC
V2-AC-0C
VCC

sL
qLr 2
nd
qLr 3
rd
qLr
CC
V2-15000-5000
V0.75

327493

CC
V2-22500-5000
V0.75

74486

CC
V2-19645-5000
V0.75

629774


CCMM-1 1he CC ln
sL
quarLer ls 327493 2
nd
quarLer ls 74486 and ln 3
rd
quarLer ls
629774 shows LhaL Lhe sLock malnLenance of Lhe parle ls dolng Lhe beLLer sale by decreaslng Lhe
level of sLock as Lhere ls a sharp rlse ln sales

Stock turnover rat|o


Cost o] goods soId
Acugc stock

sL
qLr

2
nd
qLr

3
rd
qLr


13000
5000


26


23500
5500


427


18645
5500


339


CCMM-1 1he S1CCk 1u8-Cv8 8A1lC ln
sL
quarLer ls 26 ralse Lo 427 2
nd
quarLer ls showlng
good poslLlon of sLock buL ln 3
rd
quarLer lL decreases Lo 339 whlch ls a sllghLer down ln sLock level
do noL golng Lo effecL Lhe parle sales


Safety stock |eve|

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

CALCuLA1lC-
Z 1.64 for a 95% service level
SafeLy sLock {1.64*{. - .
2
) + {9
2
- .
2
)}

389492*64
2278766










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
















Worklng noLe
CCCS 80270+30000+40006000
28270
Average SLock ( 4000+6000)/2
We have followlng lnformaLlon
lor demand
Average 9630
varlances 233227

lor order