A

PROJECT REPORT ON SUPPLY CHAIN /LOGISTICS OPERATIONS OF VARIOUS COMPANIES

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT FOR SECOND YEAR OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA)

SUBMITTED BY

(SAKSHI GOYAL 77)

UNDER THE GUIDANCE OF

(​HEMANT CHATUR, SUPPLY CHAIN MANAGEMENT PROFESSOR)

THROUGH

NESS WADIA COLLEGE OF COMMERCE, PUNE.

2020-21
 DECLARATION

I, the undersigned, hereby declare that the Project Report entitled

1)--CocaCola 2)Dmart 3)Mahindra Logistics” written and submitted by me to The

Savitribai Phule Pune University i​ n partial fulfillment for second year of Bachelor of

Business Administration (BBA) ​under the supervision of ((Hemant Chatur)) is my original

work and the conclusions drawn therein are based on the data collected and observation made
by me.

Place: Pune (Sakshi Goyal)

Date: ____________ (SY BBA IB 77)
 Modern Education Society’s
NESS WADIA COLLEGE OF COMMERCE, PUNE

Certificate

This is to certify that Sakshi Goyal student of SYBBA (IB) have submitted the project
reports (Supply Chain/Logistics operations of various organizations) in partial fulfillment for
second year of Bachelor of Business Administration.

He/ She has worked and completed his report under our guidance and direction. His/ Her
report is found to be satisfactory.

Supervisor’s Name Principal

and Designation

Internal Examiner External Examiner

 INDEX
PERTICULARS Page
No.
Activity/Project 1 Project Title --------------
1.1 Coca Cola India
1.1.1 Abstract
1.1.2 Introduction of the Organization
1.1.3 Brief explanation of the core topic/Importance of study
1.1.4 Objective/s of the study
1.1.5 Data presentation/ analysis
1.1.6 Key Findings
1.1.7 Conclusions
1.1.8 Bibliography/ Webliography
Activity/Project 2 Project Title ------------
2.1 D’Mart India
2.1.1 Abstract
2.1.2 Introduction of the Organization
2.1.3 Brief explanation of the core topic/Importance of study
2.1.4 Objective/s of the study
2.1.5 Data presentation/ analysis
2.1.6 Key Findings
2.1.7 Conclusions
2.1.8 Bibliography/ Webliography
Activity /Project 3 Project Title --------------------
3.1 Mahindra Logistic
3.1.1 Abstract
3.1.2 Introduction of the Organization
3.1.3 Brief explanation of the core topic/Importance of study
3.1.4 Objective/s of the study
3.1.5 Data presentation/ analysis
3.1.6 Key Findings
3.1.7 Conclusions
3.1.8 Bibliography/ Webliography

Project 1: Study of various supply chain activities of a reputed soft company in India:
 ​ Abstract:

The following topic is about the information of Coca Cola Company India. In this project, I have
spoken in detail about the history of the company, it's objectives and about the supply chain process. The project
also comprises the different analysis that the company has and the different future plans. The objectives of this
project were to understand the Coca cola company's supply chain and it's efficiency. These objectives were
achieved by collecting data through secondary methods and further analysing that data. .By analysing the data it
was found that Coca cola has a well planned supply chain which includes various stages starting from procurement
of ingredients and ends with consumption and recycling .It also tops the chart of most chosen consumers brands and
the credit for this goes to their mammoth supply chain and logistic system. The company is facing challenges in
today's marketplace because of market driven changes, regulatory changes and socio-economic changes.

Introduction:
 ● The Coca-Cola Company headquarters in Atlanta manufacture the concentrated syrup and 
sell it to Coca-Cola Enterprises (CCE) or another bottling partner, which is responsible for 
selling the product in North America and Canada. 
● The bottling partner sends it to a manufacturing facility, which mixes the syrup with other 
ingredients, such as filtered water and sweeteners. After that, the bottler packages the final 
product and distributes it to retail partners (stores, restaurants, vending machines, etc.) 
● The Coca-Cola Export Corporation (TCCEC) partners with local bottlers across the world and 
distributes the drink to the corresponding local markets. 

Brief study about Coca Cola India: 

It was Dr Pemberton's friend and business partner, Frank M Robinson,

who came up with the name Coca‑Cola. He wrote it out by hand in the Spencerian script that we still use as our
logo. In 1950, Coca-Cola marked its entry in India with the opening of the first bottling plant by Pure Drinks, Ltd,
in New Delhi. The company exited the country in 1977, due to the implementation of India’s Foreign Exchange
Act.

Towards the end of 1992, Coca-Cola returned to India after the opening up of the Indian economy to foreign
investments in 1991.On October 24th, 1993, The Coca-Cola Company formally began its operations in India with
the opening of a production facility outside of Agra. In 1993, Coca-Cola acquired brands like Thumbs Up, Limca,
Gold Spot and Maaza from Parle Bisleri. In 1999, Coca-Cola India launched Sprite in the country along with
Schweppes. Since its inception is 1999, Sprite has not only established itself as a brand which successfully boasts
it's 'cut-thru' perspective with an authentic, edgy, irreverent, urban and straightforward style, but has also achieved
status of an undisputed youth 'badge' brand.Today, Sprite is the one of the most preferred and fastest-growing soft
drinks in India and has become one of the top two leading sparkling brands in the country along with Thumbs Up.
The Root Glass Company of Indiana created the iconic glass Coca‑Cola Contour Bottle in 1915. The Contour
Bottle was designed to help Coca‑Cola stand out from other drinks at the time, and the design brief was to ensure
that the bottle was recognisable even in the dark, or if it was broken. 1969. The white swirl or wave – which we call
the Dynamic Ribbon - was part of a graphic redesign in the late sixties. The logo design for Coca‑Cola in the 1970s
was based on a bold, dramatic curve, reflecting the unique shape of the Contour Bottle. 1892. While Coca-Cola was
invented and first sold in 1888, the secret formula and brand was bought in 1889 by Asa Griggs Candler, who
incorporated The Coca-Cola Company three years later. On 5 September, 1919, a consortium of businessmen led
by Ernest Woodruff, Robert W. Woodruff's father, purchased The Coca-Cola Company for $25 million and it went
on the New York stock market. The Coca-Cola system in India comprises a wholly-owned subsidiary of The
Coca-Cola Company (TCCC) namely Coca-Cola India Private Limited (CCIPL) which manufactures and sells
concentrates and beverage bases and powdered beverage mixes. A company-owned bottling entity, namely,
Hindustan Coca-Cola Beverages Private Limited (HCCBPL), part of the Bottling Investments Group (BIG) of
TCCC, and fifteen licensed franchise bottling partners of TCCC, who are authorised to prepare, package, sell and
distribute beverages under certain specified trademarks of TCCC; supported by an extensive distribution system
comprising of customers, distributors and retailers. The Coca‑Cola Company is a public company that trades its
shares on the New York stock exchange - so we are 'owned' by our thousands of shareholders and investors around
the world.The first Coca-Cola shares were issued in 1919 and the initial stock symbol used for The Coca-Cola
Company was CCO. By 1923, the symbol "KO" replaced "CCO."Coca-Cola India, is one of the country’s leading
beverage companies, offering a range of healthy, safe, high quality, refreshing beverage options to consumers. Over
the last 24 years, ever since its re-entry in 1993, the company has gone on to establish an unmatched portfolio of
beverages; refreshing consumers with its leading beverage brands like Coca-Cola, Coca-Cola Zero, Diet Coke,
Thumbs Up, Fanta, Fanta Green Mango, Limca, Sprite, Sprite Zero, VIO Flavoured Milk, Maaza, Minute Maid
range of juices, Georgia and Georgia Gold range of hot and cold tea and coffee options, Kinley and Bonaqua
packaged drinking water and Kinley Club Soda.Coca-Cola India is proud to ‘Make in India and Make for India’.
100 percent of the manufacturing is done in India across 57 factories which employs 25,000 people directly and
over 2 lakh indirectly. Today, more than 95per percent of the raw materials used for Coca-Cola’s operations in
India are procured locally. The company’s business impacts 400,000 farmers and 25 lakh retailers. The company
also supplies agri-products and packaging materials from India to 44 countries.More than 200 countries. It's
actually quite difficult to think of a country where it's not available. Even in countries where we do not manufacture
Coca‑Cola, many entrepreneurs will import it from neighboring countries.India is the sixth largest market for
Coca-Cola globally in volume terms.

The Coca-Cola system in India has already invested $2 billion till 2011, since its re-entry into India. The company
will be investing another $5 billion till the year 2020. The Coca-Cola system in India directly employs over 25,000
people including those on contract. The system has created indirect employment for more than 1,50,000 people in
related industries through its vast procurement, supply and distribution system. We strive to ensure that our work
environment is safe and inclusive and that there are plentiful opportunities for our people in India and across the
world.

Coca-Cola India Pvt Ltd is a wholly-owned subsidiary of The Coca-Cola which manufactures and sells concentrate
and beverage bases and powdered beverage mixes. A Company-owned bottling entity, namely, Hindustan
Coca-Cola Beverages Pvt Ltd, thirteen licensed bottling partners of The Coca-Cola Company, who are authorised
to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company;
and an extensive distribution system comprising of our customers, distributors and retailers are the other pillars of
this system.

Coca-Cola India Private Limited sells concentrate and beverage bases to authorised bottlers. These authorised
bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets,
restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers
across India.

● Transforming, innovating and digitalising our supply chain:

To ensure our business is fit for the future, we are investing in advanced technologies and transforming and
digitalising many of our supply chain processes. Operating in 28 diverse markets, our aim is to build a borderless
supply chain that operates effectively, efficiently and enables us to imbed innovative technologies, fast. We are
applying innovation within our supply chain to expand our technical capabilities while ensuring productivity and
cost, energy and water savings. To do that, we’re investing in advanced technology that 11 will optimize our
infrastructure and transform our existing plants into efficient mega-plants that can effectively serve a country or an
entire region. This requires us to utilize new and different technologies and processes.

● Optimising infrastructure to support a 24/7 portfolio​:

Optimising and developing our infrastructure also supports our expanding 24/7 portfolio. By centralising our
production planning system for the whole Group, with each plant serving regional needs, we have been able to meet
market demand with speed and agility. This is supported by expanding production capacity in targeted markets,
including Nigeria and Russia, where we anticipate strong future growth. To manage the increased output from our
mega plants and the complexity of our expanded 24/7 portfolio, we continued investing in automation for our
high-capacity warehouses. Automated warehouses, and automatic guided vehicles, improve both efficiency and
service quality.

● ​Sustainable sourcing:
The sourcing of our raw materials accounts for a large portion of our economic, operational and environmental
footprint, and the behaviour of our suppliers directly impacts our sustainability performance. We therefore consider
our suppliers as critical partners, as well as contributors to the ongoing and sustainable success of our business. As
part of the Coca-Cola System, we have a uniform approach to sustainable agriculture, which is rooted in the
principles of protecting the environment, upholding human and workplace rights, and helping to build more
sustainable communities. These principles are showcased in The Coca-Cola Company’s Sustainable Agriculture
Guiding Principles, which provide guidance to our suppliers of agricultural ingredients.

Objective of the study:

●​ To understand the working of the Coca-Cola Company.
● To have a clear picture about the supply chain of the company
● To enhance my knowledge on the topic
Key Findings:
​New technologies support an efficient supply chain:
With the help of technology such as warehouse automation, the company wants to continuously improve its supply
chain management. Diversification and personalization of the portfolio are also important issues, which the
company intends to pursue through the use of new technologies. A current example of the use of new technologies
in the supply chain of Coca-Cola is blockchain. At present, there are still many intermediaries in the
communication and cooperation with the partners, which slow 16 down the processes and thus make them
cost-intensive. As part of a cooperation with the technology company SAP, Coca-Cola wants to optimize the
cooperation with its partners and the 160,000 orders per day, create more transparency and reduce costs using
blockchain technology. Coca-Cola already uses an IT platform specifically for the communication of the bottlers.
For example, if a partner has a bottleneck, it can purchase the quantities from another partner. With blockchain,
Coca-Cola expects to reduce the duration of order-reconciliation from 50 days to just a few days. An
inter-organizational, transparent distributed ledger will give real-time insights into the transactions made by all the
different bottlers on the network, which generates over $21 billion in revenue per year. Another example of
innovative technologies at Coca Cola is the production of bottles from plastic waste from beaches and the sea.
Nearly 300 sample bottles were produced using 25 percent recycled marine plastic. The sample bottles were
developed to demonstrate the potential of improved recycling technologies. These innovative processes make it
possible to turn used plastic of any quality back into high-quality plastic. In the process, the components of the
plastic (polymers) are broken down and impurities in the material are removed. It is then possible to reassemble the
individual components (monomers) so that the resulting material is as good as new. This means that inferior
plastics, which were previously often incinerated or deposited in landfills, can thus remain in the material cycle and
be used again for packaging food. This increases the amount of recyclable material in the cycle. This in turn
reduces the amount of new PET and thus fossil materials needed to produce new packaging and could therefore
mean strong changes for the Coca Cola supply chain.

Conclusion:

Coca-Cola as the world's leading soda beverage, with the strength of a high resources company and also a very
good and well-known brand image will be accepted at ease almost all over the world. Therefore, the strategy of
Coca-Cola focuses on covering the full market segmentation, anywhere. But along with the development of the
soda industry, many competitors both from domestic products to global manufacturers are now present and
reducing Coca-Cola's market share in each country. Hence, the need for Coca-Cola innovations on their marketing
strategies. Armed with their bottling partners and also the ability to 'think global, act local' makes Coca-Cola could
adjust its strategy in order to penetrate the market more complex and in-depth in order to continue to expand market
share in all regions. To produce the world's best known product, The Coca-Cola Company has to employ the
highest quality processes and establish standards which guarantee the production of a standardised product which
meets consumers' high expectations each and every time they drink a bottle or can of Coca-Cola. In order to
guarantee these standards the Company has had to develop a close relationship with its franchisees based on a 17
mutual concern for quality. Total Quality Management lies at the heart of this process involving a continuous
emphasis on getting quality standards right every time and on continually seeking new ways to improve
performance.

Bibliography:

https://en.m.wikipedia.org/wiki/Coca-Cola_India
us/coca-cola-worldwide-and-in-india
https://www.coca-colaindia.com/about-
www.slideshare.net

Activity 2
PROSPECTS AND PROBLEMS IN AN ORGANIZED RETAIL
STORE. D'MART INDIA

Abstract:
The objective of this paper is to discuss and present the case of DMart retail chain and provide insights
about their success in India. The Indian retail industry is emerging as one of the most dynamic and
growing industries due to the market size and economic power. DMart is an increasingly profitable retail
supermarket chain in India that aims to offer customers a wide range of basic home and personal products
under one roof with an objective to offer good products at great prices. Customers prefer DMart for better
value for money and masses of discounts than their competitors. Their target customers are middle-income
groups and families who are aspiring to meet most regular consumer needs. DMart is termed as Indian
WalMart and this accomplishment is largely due to their business philosophy, long-term vision, pricing
strategy, cautious focus, regimented model, ACT formula, innovative planning and product categories.
DMart’s financial and market success is due to three major pillars, they are customers, vendors and
employees. The data is collected from customers and employees using the questionnaire and interviews to
build up qualitative inferences. While the financial and market reports are collected from authenticated
sources.

Introduction
​One company that has caught the fancy of investors over the past year has undoubtedly been Avenue
Supermarts. Avenue Supermarts runs the hugely popular discount retail chain Dmart. Owned by the famed
and astute investor Radhakishan Damani, the company prides itself in selling items below the MRP price.
Yet the company has been able to show consistent profit year after year increasing the shareholder value.
Taking a leaf out of the promoter’s mindset, the company strongly believes in being frugal and yet provide a
satisfying buying experience to its customers. Let us now look at some of the interesting and fascinating
aspects of the company.

Avenue Supermarts Limited i.e. DMart, is an Indian chain of hypermarkets in India founded by Radhakishan
Damani in the year 2002, with its first branch in Powai’s Hiranandani Gardens. As of 31 December 2019, it had
196 stores in 72 cities across 11 states in India including Maharashtra, Andhra Pradesh, Telangana, Gujarat,
Madhya Pradesh, Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka, Uttar Pradesh, Daman
and Punjab. DMart is a one-stop supermarket chain that aims to offer customers a wide range of basic home and
personal products under one roof. Each DMart store stocks home utility products - including food, toiletries, beauty
products, garments, kitchenware, bed and bath linen, home appliances and more - available at competitive prices
that our customers appreciate. Our core objective is to offer customers good products at great value.

Business Model
For an investor to analyze, retail has one of the simplest business models among the different investable
sectors. A retailer buys products from distributors and manufacturers at a lower price and sells these products
to customers at a higher price. A retailer doesn’t need huge manufacturing capacity or capability. He does not
need specialized skills that necessitates skilled manpower. Neither does the company need to be on the cutting
edge of technology or acquire/develop patents to protect its IP. An astute management of costs and inventory
should see the company perform well for decades. However this is easier said than done. Let us now look at the
business model of the company. The business model depicted and described below is my way of looking at the
company. It need not reflect the company’s/Management’s/Promoter’s view.

● Customer Segments​: Avenue Supermart currently caters to urban and Semi urban customers
in two major states namely Maharashtra and Gujarat. Additionally it has sizeable presence in
Karnataka, Telangana and Andhra Pradesh. The company has minimal presence in Rajasthan,
MP, Chhattisgarh, NCR, Daman and Tamilnadu. The company believes in concentrated
expansion. 70-75% of new stores are opened in the vicinity of existing stores and 25-30% are
opened in new areas. This helps the company in managing its warehouse and inventory in an
efficient manner.
 ● Value Proposition​: Avenue Supermarts operates on the concept of discount retailing on the
same lines as that of Walmart and calls it EDLC/EDLP i.e. Every Day Low Cost/Every Day Low
Price. The concept being that Dmart will offer products to the customers at a lower price (below
the MRP) every single day. In order to make this offer, the company will try to negotiate with
distributors and manufacturers and buy the products way below the MRP price. So Every Day
Low Price is achieved by lowering the cost rather than taking a hit on the profits. Which means
profits are not sacrificed to attain higher revenue. The company also strives to provide variety
by offering a plethora of choices in all categories of products and maintain a certain level of
quality in its offerings.
● Channels​: Most of the sales for the company are realized via the Brick and Mortar stores (aka
offline sales). As of FY17 the company has 131 stores through which it sells the products.
Realizing the importance of online sales, the company has started selling items online on dmart
.
● Customer Relationships: Customers have minimal interaction with the employees of the
Dmart store. People know what they want to buy and they are adept at finding the items in the
mart. One will find the employees mainly engaged in two activities (a) Arranging items on the
shelf and packing/tagging loose food items (b) Billing the items at the cash counter. Customers
do not expect any special assistance from these employees. This becomes quite apparent
when you visit any Dmart store. You will notice that most of the employees are busy arranging
items on the shelf or helping with weighing and packing loose food items. Few employees
would be at the checkout counter and would be billing the items. Many a times you will not see
any employee being available to put the items into customer’s bags post the billing process.
The customer generally ends up filling their own bags.
● Revenue Streams:
○ Store based retail:​ In case of the offline stores, Dmart earns roughly 54% of its revenue by
selling food and grocery products. This includes dairy items, groceries, processed foods,
frozen foods, beverages etc. About 20% of the revenue is earned by selling non-food FMCG
products like home care products (ex: toilet cleaner, bathroom cleaners etc.), personal care
products (like shaving creams, lotions etc.), toiletries (ex: Soaps, shampoos, hair oils, tooth
paste and brush etc.) and about 26% of the revenue is obtained by selling general
merchandise and apparel.

Brief study of Dmart:

DMart was started by Mr. Radhakishan Damani and his family to address the growing needs of the Indian family.
From the launch of its first store in Powai in 2002, DMart today has a well-established presence in 216 locations
across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil
Nadu, Punjab and Rajasthan. With our mission to be the lowest priced retailer in the regions we operate, our
business continues to grow with new locations planned in more cities. The supermarket chain of DMart stores is
owned and operated by Avenue Supermarts Ltd. (ASL). The company has its headquarters in Mumbai.The brands
D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour, etc are brands owned by ASL.DMart is
promoted by Avenue Supermarts Ltd. (ASL). The company has its headquarters in Mumbai. As of 31 March 2019,
DMart had a total of 7,713 permanent employees and 33,597 employees hired on contractual basis.After the IPO
listing (as Avenue Supermarts Ltd.), it made a record opening on the market on the National Stock Exchange.

After the close of the stock on 22 March 2017, its market value rose to ₹39,988 crore. This pegged it as the 65th
most valuable Indian firm, ahead of Britannia Industries, Marico and Bank of Baroda. As of 21 November 2019, the
market capitalization of DMart is close to ₹114,000 crore, making it the 33rd largest company listed on the
Bombay Stock Exchange. If we have to have a detailed study about D'Mart, we need to know first about Avenue
Supermarts Ltd. Avenue Supermarts was incorporated as Avenue Supermarts Private Limited on May 12 2000 at
Mumbai Maharashtra as a private limited company under the Companies Act 1956. Subsequently the name of the
Company was changed to Avenue Supermarts Limited due to conversion from a private company to a public
company pursuant to a special resolution passed by the Shareholders at an extraordinary general meeting held on
February 1 2011. Pursuant to the aforesaid change of name a fresh certificate of incorporation was issued to the
Company by the RoC on May 3 2011.The supermarket chain of DMart stores is owned and operated by Avenue
Supermarts Ltd. (ASL). The company has its headquarters in Mumbai. The brands D Mart D Mart Minimax DMart
Premia D Homes Dutch Harbour etc are brands owned by ASL. DMart is a one-stop supermarket chain that aims to
offer customers a wide range of basic home and personal products under one roof. Each DMart store stocks home
utility products - including food toiletries, beauty products garments, kitchenware bed and bath linen home
appliances and more - available at competitive prices. The company's core objective is to offer customers good
products at great value.DMart was started by Mr. Radhakishan Damani and his family to address the growing needs
of the Indian family. From the launch of its first store in Powai in 2002 DMart today has a well-established
presence in 154 locations across Maharashtra Gujarat Andhra Pradesh Madhya Pradesh Karnataka Telangana
Chhattisgarh NCR Tamil Nadu Punjab and Rajasthan.In 2007 DMart entered Gujarat with its first store in the state.
In 2010 the total store count of our company crossed 25 stores and the audited consolidated revenue crossed Rs
1000 crore mark. In 2012 the store count of the company crossed 50 stores. In 2014 the store count of our company
increased to 75 stores. In 2015 audited consolidated revenue of the company crossed Rs 5000 crore mark. In 2016
the store count of our company increased to 110 and the consolidated revenues crossed Rs 7500 crore mark. On 30
September 2016 the company filed Draft Red Herring Prospectus and on 2 March 2017 filed Red Herring
Prospectus with SEBI for raising Rs. 1870 crore. The IPO was open through the book building route from 8 March
2017 to 10 March 2017 with Price Band of Rs 295 to Rs 299 per share. The Issue got subscribed 73.41 times
leading to its Issue Price being fixed at Rs 299 per share. The Shares get listed on BSE and NSE on 21 March 2017.
The stock debuted at Rs 604.40 on BSE which is 102.14% above issue price.On 2 February 2018 Avenue
Supermarts (ASL) announced that the company has completed the acquisition of 4.35 crore equity shares of Rs 10
each fully paid-up of Avenue E-Commerce Limited at a price of Rs 11.30 per equity share aggregating to Rs 49.21
crore. Pursuant to this Avenue E-Commerce Limited has become a wholly-owned subsidiary of the company.
Before the acquisition of additional shares ASL held 49.21% stake in Avenue E-Commerce Limited. Earlier ASL's
Board of Directors at its meeting held on 25 January 2018 had approved acquisition of additional 4.35 crore equity
shares constituting 50.79% of the share capital of Avenue E-Commerce Limited an Associate Company from other
shareholders for total consideration of Rs 49.21 crore. Avenue E-Commerce Limited is engaged in the business of
online retail of food products and groceries in India. The company clocked turnover of Rs 1.20 crore in 2016-17.On
7 March 2018 Avenue Supermarts (ASL) announced that the shareholding of the company in Avenue E-Commerce
21 Limited has reduced from 100% to 99.66% pursuant to the allotment of shares on preferential basis by Avenue
E-Commerce Limited to ASL and other applicants of the issue. The supermarket chain of DMart stores is owned
and operated by Avenue Supermarts Limited. (ASL).DMart in its endeavour to serve as many customers as
possible, is continuously expanding the number of store presence across the country. In addition to Mumbai, DMart
has multiple stores in cities such as Ahmedabad, Baroda, Bengaluru, Hyderabad, Pune and Surat.DMart is owned
and operated by Avenue Supermarts Ltd. (ASL) – a company founded by Mr. Radhakishan Damani.

Some of the successive strategies of D'Mart India:

A) Full Ownership of Space​:

Majority of the known names like Big Bazar, Star Bazaar, Hypercity, More etc. have a good number of stores
located in malls which are rented space. This is done to benefit from customer footfalls & also because the initial
investment is much lesser, since good malls only give out spaces on rent which is significant and becomes a fixed
operational cost month on month. DMart have their own properties. Over a period of last 10 years, this strategy has
made perfect sense because, now these properties have all appreciated in value and they do not have to pay any
rent, which is usually the most major cost factor for a retailer which resulted in higher margins.

B) Low Margin and High Volume​:

FMCG business is based on low margin and high volume business. The better way to attract the Indian consumers
is by offering more discounts. DMart bought a good volume of goods from the distributors and instead of
requesting them to extend a credit line to DMart. They assured Payment of Goods in about 15 days. Other players
work usually on a 60-day credit line. No comparable competitor competes with DMart on this and DMart gets extra
margin for quick cash. Behind the scenes, this fast turnover is what it uses to negotiate with wholesalers and
companies for better prices. This doesn’t mean arm-twisting suppliers though. In fact, payments to most suppliers
are arranged fortnightly. This is among the shortest credit periods in any industry.

​c) Low Private Brands​:

They offer a lesser array of top brands for a particular product when compared to other shopping malls. This is
because they contract people to directly manufacture products. This ensures elimination of distributors and
middlemen. Now since they have volume bargaining & cash power, they negotiate best margins. Some of which are
passed to the customer and remaining become profits along with better control on the supply chain. Similarly,
contrary to other chains, it does not have private labels, nor does it offer a wide choice of brands in each
segment.The focus is clear: daily consumption goods + known brands only + limited options = ultra-fast turnover.

d) Elimination of Intermediaries​:

DMart uses bargaining power to negotiate with top brands by eliminating distributors. While, the best of brands
make an exception for them because the sales volume is too large to ignore. This strategy has caught up with other
retailers too.

E) Strategy 5 Value Based Management and Team​: ​They have a wonderful top management
and employee team. They have developed the unique value proposition for their organization and employees to
perform better which contributed to the growth of the DM
F) Strategy 6 Cautious Business Focus​:

Other retail companies have expanded quickly into multiple segments with differentiated retail chains, D-Mart
sales mix is largely limited to food, groceries and daily products. Categories like high-end electronics, jewellery
and watches which companies like Reliance have forayed into and which make up as much as 25% of Indian
consumer spending is something the company stays far away from. DMart thrives on low margins and, to a certain
extent, D-mart is built around this philosophy. Industry executives call it their three step business model as “Start
with low-cost products that consumers need on a daily basis and that you can sell for slightly below MRP. This
allows them to rack up a great inventory turnover ratio. Then use that quick inventory turnover to negotiate better
prices with wholesalers which supports to get low prices”

Objective of the study:

● To understand the working of the Dmart.

● To have a clear picture about the supply chain of the company
● To enhance my knowledge on the topic
● To understand how efficient the working of the management helps in the
achievement of the company
Dmart Retail Store Analysis

Expansion Track record:

The following numbers capture the growth attained by DMart (with respect to its stores) over the past
few years.

● Store Count: The most important metric for the company is the number of stores. More
the number of stores more the sales and hence more the revenue and profits. Since the
company owns most of the stores, it has to make a calculated judgement on the viability
of constructing a new store. The company looks at the following items while zeroing on
a location for its new store [1]: Population density, customer traffic and vehicular traffic,
customer accessibility, potential growth of the local population and economy, area
development potential and future development trends, estimated spending power of the
population and local economy and payback period, estimated on the basis of expected
sales potential, strategic benefits, proximity and performance of competitors and store
site characteristics. The table below lists the store count over the past six years. We can
clearly see that over the past 4 years the company has consistently increased the
number of new stores opened by it.
 FY12 FY13 FY14 FY15 FY16 FY17

New Stores 10 7 13 14 21 21
opened in
the FY

Total 55 62 75 89 110 131

Number of
Stores at
the end of
FY

Retail Business area:

As the store count increases the total retail space increases as well. The table below captures
the increase in cumulative store space. We can notice that with every passing year the
company has been increasing the total retail area at a faster pace.

FY12 (in FY13 (in FY14 (in FY15 (in FY16 (in FY17 (in
Million Sq Ft) Million Sq Million Sq Million Sq Ft) Million Sq Ft) Million Sq Ft)
Ft) Ft)

Total Retail 1.55 1.76 2.14 2.66 3.33 4.06

business area

New Area 0.21 0.38 0.52 0.67 0.73

Added during
the FY
Key Findings:

Dmart as discussed is one of the major Supermarkets in India where it has majorly succeeded in a
successful business model in the crucial element of business and beat its competition. DMart
business model has made the company grow exponentially and become the most profitable
supermarket chain in India. The company's mission is to be the low-priced retailer in its area of
operation. D'Mart has mainly focused it's goals of achievement in the following points.

● Product-Mix

The company comprises everyday use products for its customers, which are
categorized as Foods, Non-foods and General Merchandise & Apparel. The chain
operates on a B2C (Business to Consumer) model, where goods are directly sold
from the manufacturer to the end-user. The demand for these goods is on-going as
they comply with the basic day-to-day needs, thereby creating a demand throughout
the year. This eliminates the risk of high demand fluctuations and provides
consistency to the business.

●​ Slotting Fees

It ​is a payment that is made by the manufacturer of goods to the superstore to keep its products
on the shelf for sale. Also called an entry fee for the products, which are held in the supermarket.
Being a supermarket chain DMart also charges a 'Slotting Fee.' The store attracts high volumes of
customers, making it an attractive and opportunistic place for the manufacturers to keep their
products. This attracts more and more manufacturers willing to put their products in the store. A
slotting fee indirectly reduces the product's purchasing price for the retailer, thereby allowing it to
offer the products at discounted prices, i.e., less than the MRP (Maximum Retail Price), hence
attracting large buyers​.
Reduce Expenses

A low-cost business model with high profits is one of the most attractive and successful forms of
running a business. As simple, it sounds like it is not that easy to achieve. However, DMart has
successfully achieved it. How? DMart operates on a low-interior-cost concept where it has tried to
reduce the operational expenses for the company. These low operating expenses are a result of-
efficient space utilization by putting more products in less space thereby creating space for more
products; less number of billing counters reduces the requirement of more workforce and systems
thereby reducing employee cost; a very basic and low-maintenance interior of the store, are some
of the ways through which DMart has controlled its expenses.A low-cost business model with high
profits is one of the most attractive and successful forms of running a business. As simple, it
sounds like it is not that easy to achieve. However, DMart has successfully achieved it. How?
DMart operates on a low-interior-cost concept where it has tried to reduce the operational
expenses for the company. These low operating expenses are a result of- efficient space
utilization by putting more products in less space thereby creating space for more products; less
number of billing counters reduces the requirement of more workforce and systems thereby
reducing employee cost; a very basic and low-maintenance interior of the store, are some of the
ways through which DMart has controlled its expenses.

Low Purchase Price for the Product

The credit cycle of DMart, i.e., the time in which it returns the payment to the manufacturers for
the goods purchased from them is quite less than other retail operators. This allows the company
to avail massive cash discounts from the manufacturers, thereby cutting the purchase price of the
goods.
Volume Sales

Being a low-priced retailer gives an edge to DMart. Low price leads to high footfall in the store
leading to high sales volume, thereby attracting more and more manufacturers to keep their
products in DMart. This is a cycle created by DMart, which keeps the loop ongoing. Further, due
to high volume sales, manufacturers also extend a volume discount, reducing the purchasing
price. This supports the low-cost business model and makes it stronger.

Regional Goods

India being a diverse country has various regional specific goods. DMart grabbed this opportunity
by stocking its stores with area-specific products. People across different states have unique
lifestyles habits and hence lead to slightly different consumption habits. DMart pooled the popular
local brands of a particular region in one place, making it more convenient for the buyers to avoid
going to the local Kirana shops. This helps DMart to cut the competition from general Kirana
stores gaining more market share.

Self-Owned Stores

The Company operates on self-owned stores, which allows it to be a low or no debt company
making it stronger financially. Further, no rental cost helps in high positive cash flows, which are
used for opening more stores. Although the expansion and growth in self-owned stores are slow, it
has its own advantages. Of all the existing stores to date, almost 80% are self-owned.

Target Audience

DMart’s target customers are low-income groups who are looking for low-cost goods. Thus by
providing excellent quality and branded products at a lower cost, DMart attracts a more extensive
customer base than other retailers.

Eliminates Middlemen

Operating on a B2C model eliminates intermediaries and hence the added cost to the product's
price. This further helps the company to sell goods at a lower price. Thus the expansion of Dmart
in India has increased immensely because of the idea of making the low price available to every
person in the country. The supply chain management of Dmart has improved from the time it
flourished. These were some of the sectors that helped in growing Dmart massively and are the
reason for its achievements.

Conclusion:

DMart’s case study creates awareness about the techniques and strategies it uses especially for
cost efficiency and higher sales. Their strategy has marked a difference from nearly every other
Indian retailer. Whereas other companies have expanded quickly into multiple segments with
differentiated retail chains, DMart has restricted segmentation. This makes DMart more profitable
than others. It has certain challenges but the founder is always prepared with some out of box
strategy and gives stellar performance. Majority of the customers of DMart are middle income
families and they prefer it for price, value for money and offers and discounts. The inferences
drawn from the case may lead to possible understanding of a company’s performance, the way it
 differentiates from its competitors.The company is working on its dilemma by pilot testing some
online services & home delivery services in metro cities keeping in mind its cost efficiency.

Bibliography:

http://investing.amitkeerti.com/consumer-goods-retail/avenue-supermarts-d-mart-an-introduction/
https://www.slideshare.net/ShubhamRathi32/dmart-a-complete-study-retail-business
https://en.wikipedia.org/wiki/DMart

Activity 3

Mahindra Logistics
 Abstract:

The project is about the detailed study of Mahindra Logistics company, one of the leading 3pl
companies in India. Mahindra Logistics was started in the year 2000 and has been running
successfully these many years. In the project we discuss the objective of the company, it's history,
data presentation and some of the important achievements till now. The objectives of this project
were to understand the company's supply chain and it's efficiency .These objectives were
achieved by collecting data through secondary methods and further analysing that data .By
analysing the data it was found that Mahindra Logistics has a well planned supply chain which
includes various stages starting from procurement of ingredients and ends with consumption and
recycling .It also tops the chart of most chosen consumers brands and the credit for this goes to
their mammoth supply chain and logistic system.

Introduction :

Mahindra Logistics Limited (MLL) is a leading 3PL solutions provider in India with a strong presence
across the country and across diverse industries. Mahindra logistics is one of the few logistics providers which
offers solutions in two distinct business segments – Supply Chain Management (SCM) and Enterprise Mobility.
We offer Supply Chain solutions to diverse industry verticals such as Automotive, Engineering, Consumer
Goods, Pharmaceuticals, Telecom and E-commerce and also offer integrated employee transportation
solutions to enterprise across IT, ITeS, manufacturing, Banking, Financial Services and Insurance, and
Consulting Businesses. We have an asset-light business model with a focus on technology and emphasis on
customer centricity. We create customised, technology-enabled logistics solutions that offer flexibility and
scalability.

Brief study of Mahindra Logistics :

Mahindra Logistics offer customised and end-to-end logistics solutions and services, including transportation and
distribution, warehousing, in-factory logistics and value-added services to our customers. The aim is to make the
journey of all inputs and finished products from origin to end customer, more efficient and reliable, with shortened
delivery times and better customer satisfaction.
Warehouse ​management system

MLL WMS helps transform conventional warehouses by improving efficiency and productivity of operations
within the warehouse. MLL WMS automates
receiving, put away, picking, kitting and shipping in warehouses and supports inventory cycle count planning and
execution.
This system also adds levels of control that permit users to better plan and manage resource and storage space in
warehouse operations. It also provides management with real-time visibility to inventory and order status across
different warehouses of the organisation.

Transport ​management system

The TMS platform enables collaborative logistics management. It enables collaboration with customers,
BAs and partners. It helps save operational and freight costs through shipment consolidation.
The platform provides 360o transparency through data sharing across all stakeholders. It provides
seamless visibility to operations resulting in operational efficiency as well as provide analytics and MIS
reports.

Control ​tower

The Control Tower Operations (CTO) is our core mechanism for communicating timely delivery of all movements,
goods and passengers. It keeps an eagle’s eye on our fleet of vehicles ensuring smooth and timely delivery.

Smart ​warehouse
Create model warehouses across people (training, referrals, salary advances), process (pick to light, System directed
pick up and put away etc.) and technology (Warehouse Management Systems, Handheld Terminals led
management, Yard management, Virtual Reality led training).

Partnering with Lords

Ocean:
● Seamless, process-driven operation
● Customized and innovative solutions
● BSA on Wan Hai, Zim, Costco, OOCL, CMA (Europe)
● Controlling 20000 TEU’s per Annum
● Exclusive CFS Arrangement
● Committed Space and Equipment
● Special Equipment and Break Bulk Handling
● Single Window Solution on Customs Clearance, Delivery and Warehousing in India.

*MLL offers various value-added services:

Kitting is mostly available VAS by auto OEMs, Telecom and Consumer product companies. All MLL warehouses
are well adept to provide kitting services to its customers at a very short notice. Bulk breaking service is the most
sought after by consumer product companies. Goods that are either imported or made locally are transported to the
nearest MLL warehouse. Here, depending on the dispatch requirements, the respective quantities are removed from
the bulk and further transported. Labelling is availed by all customers on a frequent basis at MLL. It is used while
Kitting or Bulk Breaking activity when the original label is deemed ineffective if the goods are intended to be
transported further. Generally, Bundling is considered as the opposite of Bulk Breaking. It is one of the most
in-demand services from MLL and is mostly used by consumer product companies. Customized packing service is
generally opted for if any of the above services are used. Essentially, the resultant packages are very different from
the original in such cases. Due to its different sizes, special packaging needs to be devised to achieve optimum costs
of logistics.
Objectives of Mahindra Logistics:

To understand the working of the Dmart.

● To have a clear picture about the supply chain of the company

● To enhance my knowledge on the topic

● To understand how efficient the working of the management helps in the achievement of the company.

Objective of the stud​y

To understand the working of the company.

● ​To have a clear picture about the supply chain of the company

● To enhance my knowledge on the topic

● To understand how efficient the working of the management helps in the achievement of the company

Data analysis and interpretation:

The stock is recently listed on stock exchanges. It got listed in 2017 at a listing price of 430. It performed well after
listing and soon hit the 600 mark in a few months from listing giving excellent returns to investors. Since then it has
underperformed and is now trading close to 500 mark giving decent returns to investors. Since the Company is
newly listed one should not make much out of the stock price movement​.

Through the above data we come to know the financial data of the Mahindra logistics. Although Mahindra
Logistics does not top the chart of market share of 3pl services, it is one of the leading 3pl services providers and
even has a good amount of market share. In this project, I have mainly shown the capital market shares of the
Mahindra Logistics Ltd. and the foreign exchange earnings.

Key Findings:

• Expand the portfolio of our o rings across diverse sectors enabling us to design and deliver end-to-end
integrated solutions.

• Expand our presence in express logistics and build strong operating capabilities.

• Enhance focus on freight forwarding through our subsidiary, LORDS, and increase scale and global
presence.
Provide integrated and differentiated solutions focused on end market value chains such as integrated fulfilment and
distribution, returns processing, reverse logistics, omni-channel fulfilment, cross-border logistics and other
value-added services.

• Build operational excellence by transforming and constantly improving our design and delivery capabilities,
including developing uniquely customised operating systems and constantly expanding our network.

• Strong focus on digitisation and innovation by leveraging technology to create integrated business systems. •
Build productivity-linked standardised environment to improve and maximise the performance level across
operating locations and cross leverage know-how.

• Expand services from Internal Combustion Engine (ICE) to Electric Vehicles (EVs); our long-term goal is to have
30% of our total fleet as EVs.

• Launch new services such as Enterprise OnCall business by building an optimal mix of dedicated fleets and
developing DCO (Driver Cum Owners) fleets.

• Launch B2B2C subscription-based services for daily office commute, wherein the end user can self-book, roster
and schedule a ride between workplace and home.

• Develop an integrated tech platform in Enterprise Mobility (EM) to support asset optimisation, contracting,
invoicing, network visibility and other offerings.
TRENDS:

ALTERNATE DELIVERY MODELS:

Several companies faced the challenge of delivering goods to the end consumer in a cost-effective manner. They
started looking for supply chain partners who can provide better reach, faster delivery and inventory optimisation in
warehouses. Today, alternate delivery models are used by several companies to match customer expectations​.

GREEN LOGISTICS:

Embedding sustainability in their business is crucial for logistics companies as transportation of goods
leads to carbon emissions, resulting in environmental degradation. Thus, green mobility services came into
being, which not only reduced environmental impact, but also improved profitability.
MULTI-MODAL LOGISTICS:

MULTI-MODAL LOGISTICS:

Multi-modal transportation currently uses multiple means of transportation, thus optimising deadlines and
cutting costs. It also makes better use of available infrastructure.
CROSS-BORDER CONSOLIDATION:

Cross-border consolidation strategies are crucial for companies for consignment pick-up from the place of origin,
consolidation, custom clearance, deconsolidation and last-mile delivery. Logistics companies involved in such
deliveries must have a strong network of partners internationally, a network of multiple partners locally, expertise
in handling such projects and efficiency in managing the entire supply chain.

SHARED MOBILITY AND EV ADOPTION:

According to a new study by Frost & Sullivan, the Strategic Assessment of Shared Mobility Market in India, 2019,
the shared mobility services market is expected to further grow at a CAGR of 9.7% between 2019 and 2025 to
reach 4.7 million. EVs help organisations reduce their carbon footprint. We are, therefore, increasingly deploying
EVs in our fleet on a pilot basis​.

OUR FUTURE READY SOLUTIONS:

• Integrated delivery solutions across storage and distribution

• Multi-channel delivery capabilities leading up to end-to-end management of omni-channel logistics

• Innovations based on local store networks

• App based technology to control deliveries

• Measured our carbon footprint

• Reduce the age of our fleet to less than eight years

• Train and create awareness among drivers about regular vehicle maintenance

• Policy emphasis on transportation through rail, inland waterways and sea

• Direct Freight Corridors (DFCs) commencing from 2021

• Continue work with asset-lead players

• Work with a network of transport providers to manage sea, air and road (within the country and
across borders) transportation

• Deliver services through our fleet of tractor trailers, specially modified trucks and trailers to
handle Over Dimensional Cargo (ODC)

• Offer FTL and PTL for domestic consignments and FCL and LCL for international consignments
• Provide custom clearance for international assignments

• Work with a network of transport providers to manage sea, air and road (within the country and
across borders) transportation

• Deliver services through our fleet of tractor trailers, specially modified trucks and trailers to
handle Over Dimensional

Conclusion:
Mahindra Logistics Limited (MLL) is a portfolio company of Mahindra Partners, the USD 1 billion private equity
division of the USD 20.7 billion Mahindra Group. MLL is an integrated third-party logistics (3PL) service provider
specializing in supply chain management and people transport solutions. MLL serves over 350 corporate customers
across various industries. Thus, we come to a conclusion that Mahindra Logistics is the leading 3pl company in
India which runs multiple industries at the same time. Mahindra logistics has improved its sectors and has been one
of the most important 3pl companies in India providing jobs and employment to younger leads. The company
started in the year 2000 but in a span of almost 20 years it has grown as one of the leading market companies in
every sector. Through this project we get to know the inside details of Mahindra logistic company by discussing
how far it has spread in every sector like automobile, engineering, commodities etc.

Bibliography:

https://mahindralogistics.com/technology/

https://economictimes.indiatimes.com/mahindra-logistics-ltd/stoc
ks/companyid-23241.cms

https://en.wikipedia.org/wiki/Mahindra_Group
Use of Graphs/Charts/Images wherever necessary. Font Size : 12 , Times New Roman