A

PROJECT REPORT
ON
“COST OF CAPITAL ANALYSIS OF PARLE PRODUCTS PVT. LTD.”

IN THE PARTIAL FULFILLMENT OF DEGREE BACHELOR OF COMMERCE(H)

SESSION (2020-23)

SUBMITTED TO SUBMITTED BY
MISS. RAJNI VILASRA AAYUSHI SAINI
(ASST.PROFESSOR) B. COM.(H) 6TH SEM.
ROLL NO. 201335860001

DROAN COLLEGE OF EDUCATION AND TECHNOLOGY

(AFFILIATED TO KUMAUN UNIVERSITY, NAINITAL)

 CERTIFICATE
[from faculty guide]

I have a pleasure in certifying that AAYUHI SAINI, is a bonafide student of 6th

semester of the Bachelor Of Commerce (HONS.) of DROAN COLLEGE OF
EDUCATION AND TECHNOLOGY under university roll no. 201335860001. She
has completed her project entitled COST OF CAPITAL ANALYSIS OF PARLE PVT.
LTD. Under my guidance, In the year 2020-23, in the final fulfillment of
BACHELOR OF COMMERCE(H).

Signature of Project Guide

(Miss. RAJNI VILASRA)

 STUDENT’S DECLARATION
I hereby, declare that the project report titled, “COST OF CAPITAL ANALYSIS OF
PARLE PVT. LTD.” is my original work and has not been published or submitted
for any degree, diploma or other similar titles elsewhere. This has been
undertaken for the purpose of partial fulfillment of BACHELOR OF
COMMERCE(H) in DROAN COLLEGE OF EDUCATION AND TECHNOLOGY.

Date:- AAYUSHI SAINI

B.COM. (H) 6TH SEM.
ROLL NO. 201335860001
 ACKNOWLEDGEMENT

It is really a matter of pleasure for me to get an opportunity to thank all the

persons who contributed directly and indirectly for the successful completion of
the project report, “COST OF CAPITAL ANALYSIS OF PARLE PVT. LTD.”

First of all, I am extremely thankful to my college DROAN COLLEGE OF

EDUCATION AND TECHNOLOGY for providing me this opportunity and for all its
contribution and cooperation. I also express my gratitude to my project mentor
and guide Miss. RAJNI VILASRA. I am highly thankful to my respected project
guide for giving me the encouragement and freedom to conduct my project. I
am also grateful to all my faculty members for their valuable guidance and
suggestions for my entire study. I would also like to thank PARLE PRODUCTS
team for extending their valuable time and cooperation.
 PREFACE

This project report attempts to bring under one cover, the entire work and
dedication put in by me in the completion of the project work on COST OF
CAPITAL ANALYSIS OF PARLE PVT. LTD.

I have expressed my experiences in my own simple way. I hope who goes

through it will find it interesting and worth reading. All constructive feedback is
cordially invited.
TABLE OF CONTENTS

S.NO. TITLE PAGE NO.

1 Front Page 1
2 Certificate 2
3 Student Declaration 3
4 Acknowledgement 4
5 Preface 5
6 Table of contents 6
7 Introduction of organisation 7
8 Objectives of study 8
9 Cost of capital 9&10
10 Basic cost of capital 11
11 Literature review 12
12 Brief history of organisation 13
13 The strength of the brand 14-15
14 Machinery used in manufacturing 16-18
15 Organisation product and services 19-34
16 Major challenges for the organisation 35-36
17 Introduction to cost of capital 37
18 Introduction to parle 38-43
19 Scope of study 44
20 Research methodology and limitations 45-46
21 Data presentation and analysis 47
22 Balance sheet 48
23 Profit and loss account 49
24 Analysis of cost of capital 50-54
25 Findings 55
26 Suggestions 56
27 Conclusion 57
28 Bibliography 58
29 Questionnaire 59-60
 INTRODUCTION OF ORGANIZATION

A long time ago, when the British ruled India, a small factory was setup by
Mohanlal Dayal Chauhan, in the suburbs of Mumbai city, to manufacture
sweets and toffees. The year was 1929 and the market was dominated by
famous international brands that were imported freely. Despite the odds and
unequal competition, this company called Parle Products, survived and
succeeded, by adhering to high quality and improvising from time to time.

A decade later, in 1939, Parle Products started manufacturing biscuits, in

addition to sweets and toffees. Having already established a reputation for
quality, the Parle brand name grew in strength with this diversification. Parle
Glucose and Parle Monaco were the first brand of biscuits to be introduced,
which later went on to become leading names for taste and quality.

VISION

To be the leaders in our business. We will stand apart from the competition by
being the first in the market to innovate.

MISSION

We will be leaders in our business by maintaining high quality, introducing new

and innovative products, reaching every part of India, remaining customer
centric, constantly upgrading our knowledge and skills.

Parle is leading Indian Food and Beverage company, the only Indian transitional
gain with the past experience of having successfully launched leading soft drinks
like Frooti, Appy, Bailley.
 OBJECTIVE OF STUDY

▪ To find out the cost of capital analysis of PARLE G.

▪ To find out the net capital of the company.

▪ To analyze the performance of the organization.

▪ To analyze the different sources of capital.

COST OF CAPITAL

Minimum rate of return which a company is expected to earn from a proposed

project so as to make no reduction in the earning per share for the equity
shareholders and its market price.

✓ In economic terms there are two approaches to define Cost Of Capital :-

1. It is the borrowing rate of firm, at which it can acquire funds to

finance the proposed projects.
2. It is the leading rate which the firm could have earned if the firm
would have invested elsewhere.

ASSUMPTION

The firm’s business and financial risks are unaffected by the financing of
projects.

BUSINESS RISK

It is the risk to the firm of being unable to cover fixed operating costs.

FINANCIAL RISK

It is the risk of being unable to cover required financial obligations such as

interest and preference dividends.

IMPORTANCE OF COST OF CAPITAL

1. Capital Budgeting Decisions.

2. Designing the Corporate Financial Structure.

3. Deciding about the method of financing- in lieu with capital market

fluctuations.

4. Performance of top level management.

5. Other areas- eg. Dividend policy, working capital.

MEASURING OF COST OF CAPITAL

A realistic measure of CoC should have the following qualities of capital

expenditure decisions :-

1. It must account for the general uncertainty of expected future returns

from investment proposals.
2. It must allow for the various degrees of uncertainty of expected future
returns associated with different uses of fund.
3. It must allow for the effects of uncertainty associated with an incremental
investment and the uncertainty of returns from the entire asset portfolio
of the firm.
4. It must account for a variety of financing means available to a firm.
5. It must allow for the differential effects of financing combination on the
amount and quality of residual net benefits accruing to shareholders.
6. It must reflect the changes in the capital market.
 BASIC COST OF CAPITAL

1. Cost of Equity Capital:- the cost of obtaining funds through the sale of
common stock.

2. Cost of Preference Shares.

3. Cost of Debt.

4. Cost of Retained Earning.

 LITERATURE REVIEW
Every business must assess where to invest its funds and regularly evaluate the
quality of risk of its existing investments. Investment theory specifies that firms
should invest in assets only if they expect them to earn more than their risk-
adjusted hurdle rates. Knowing a business’ cost of capital allows a comparison
of different ways of financing its operations. For example, increasing the
proportion of debt may allow a company to lower its cost of capital and accept
more investments.

Knowing the cost of capital also permits a company to determine its value of
operations and evaluate the effects of alternative strategies. In value-based
management, a business’ current value of operations is calculated as the
present value of the expected future free cash flows discounted at the cost of
capital. This is useful as a guide in decision making and financing needs.

The cost of capital is also used in computation of economic value added (EVA).
EVA is useful to the managers of the company as well as to external financial
analyst. It is the measure of the economic value created by a company in a single
year. EVA is calculated by subtracting a capital charge from after tax operating
income.

EVA=CAPITAL CHARGE – OPERATIONG INCOME AFTER TAX

Financial theorists agree that using a correct risk-adjusted discount rate is

needed to analyze a company’s potential investments and evaluate overall or
divisional performance. Risk-adjusted discount rates should incorporate
business and operating risk as well as financial risk. Business risk is measured by
the nature of products and services the business provides, the length of
product’s life cycle. Operating risk is determined by a company’s level of debt.

For example, industries that exhibit high operating leverage and short life cycles,
and have discretionary products such as technology, have very high beta
measurements. Borrowing money will only exaggerate the impact of the risk.
 BRIEF HISTORY OF ORGANIZATION
Parle-G biscuit 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 paper wrapper with the depiction
of a young girl on the front. Parle-G has been a strong household name across
India. The great taste, high nutrition and the international quality makes Parle-
G a winner. No wonder, it’s the undisputed leader in the biscuit category for
decades.

Today there is a gradual shift upwards in terms of taste. Cookies having higher
butter content are expected to be tastier. Considering the biscuit category have
been growing rapidly at near about 8%, Parle has decided not to focus on its
confectionery brands. There is no big thrust on confectionery since the kind of
volumes we do are not enough to support the advertising spends. In spite of
having certain strong confectionery brands such as Poppins, Mango Bite,
Melody and Kismi. Parle realizes that it cannot get the margins in this category
compared to its biscuits. The company wants to continue having that strong
emotional connect with consumers and doing social deeds such as offering
scholarships is part of its corporate social responsibility initiatives, which should
keep the major biscuit on its pedestal.
 THE STRENGTH OF THE BRAND
Over the years, Parle has grown to become a multi-Million US Dollar company.
Many of the Parle products- Biscuit or confectionery are market leaders in their
category. Today, Parle enjoys a 40% share of the total biscuit market and a 15%
share of total confectionery market, in India. The Parle biscuit brand’s such as
Parle-G, Monaco, and Krackjack are confectionery brands and confectionery
brands such as, Melody, Poppins, Mango Bite and kismi enjoy a strong imagery
and appeal amongst consumers.

In this way, by concentrating on consumer tastes and preference and

emphasizing on Research and Development, the parle brand grows from
strength to strength.

Please forward all electronic artwork for orders to: Artwork clean up, touch-ups,
typesetting, or re-sizing requiring less than ½ hour is free. Any additional artwork
time spent by the factory will be billed at $40, USD per ½ hour. Parle will only
notify you of this additional charge if it exceeds ½ hour of additional time or $40,
USD Add one-three days to standard lead times. If you send low-resolution
artwork, we will assume that you want us to clean it and will bill you accordingly.

Quick-Tips to help you prepare art work:

1. Placed images are not recommended and will incur artwork charges.

2. All fonts must be converted to outlines to avoid font substitutions.

3. Purchase order number.

4. Company name.

5. PMS color choice.

6. Format used.

7. Contact name and phone number.

8. Due Date or Event Name.

9. Include font and size desired if typesetting is requested.

THE QUALITY COMMITMENT

Parle Products has one factory at Mumbai that manufactures biscuits and
confectioneries while another factory at Bahadurgarh and Neemrana are the
largest such manufacturing facilities in India. Parle Products also has 14
manufacturing units for biscuits and 5 manufacturing units for confectioneries,
on contract. All these factories are located at strategic locations, so as to ensure
a constant output and easy distribution. Each factory has state-of-the-art
machinery.

All Parle products are manufactured under the most hygienic conditions. Great
care is exercised in the selection and quality control of raw materials, packaging
materials and rigid quality standards are ensured at every stage of the
manufacturing process. Every batch of biscuits and confectioners are thoroughly
checked by expert staff, using the most modern equipment.
STEPHEN MIXER

The Stephen TK mixer is an ideal component to fully automatically feed the

down-stream makeup equipment for biscuits, bread, rolls, buns, cake, sweet
goods, cookies and crackers.

BISCUIT BAKING OVEN

The oven body consists of steel steam tight tunnel with equally divided zones of
the radiators. Stainless steel expansion joints are provided between these zones
in order to eliminate the expansion of the oven section. The inspection doors
are provided for inspection of the baking goods during the process.

BAKING SYSTEM

The baking in the heating chamber takes place by radiators located under and
above the wire mesh band which distribute heat for uniform baking. The
recirculation heating gases of these radiators can be controlled for each zone
separately. The closed recirculation system is having slight vacuum so that
combustion gases cannot enter into the baking chamber. The ventilating fan is
for circulation of the heating gases through the recirculation system and
thermostatically controlled burners provide the set temperature of heating
gases.

ROTARY CUTTER

The single head rotary cutter prints fine design on a continuously fed dough
sheet and also cuts out the individual dough piece. The unit powered by 1.5KW
helical geared motor and speed controlled by AC frequency controller. Drive is
given to cutting roller only to accommodate different sizes of dies in this
machine.

COUNTING UNIT

The counting unit counts and see that the biscuit making process is going fine or
not, i.e. as per the program set in the machine, program is set as per the grams
required. Generally, 16 biscuits are taken by the counting unit so that it leads to
100 grams.
MULTILEVEL WRAPPING MACHINE

This machine helps in wrapping the biscuits on the particular wrapper fixed on
the roller of the machine. The wrapper is feed into the machine and the sealing
of the wrapper is done by four heater rollers, which is fitted on the machine.
This heater roller heats up the plastic and seals the packet. And at the same time
the jaw cutter cut the packet on the cutting edge marked i.e., as per grams of
the packet which is feed in the automatic machine (100-120, 120-150, 150-170,
170-190). The packets coming out from the wrapping machine in a minute is
programmed in computer and can be changed as per the need.

POLY BAGS

Poly bags contain 24 packets of Parle-G in one poly bag. There are 4 workers
employed on this section who take care of the work by putting 24 packets of
biscuits in the bag and forwarding it to sealing machine section.

SEALING MACHINE

The sealing machine has heater rod for sealing the poly bag in which 24 packets
of biscuit are placed, and it have a conveyer belt on other side so that when the
poly bag passes through the heater and get sealed then it is passed to the
tapping machine.

TAPPING MACHINE

Six such poly bags are placed in one such corrugated box and the box is passed
through the tapping machine where are tapped and then sent through a long
diversion conveyer belt. This belt helps to transfer the box to the dispatch
section directly. 36 boxes are arranged on pallet in the dispatch section, from
where they are transferred to the various dealers all over the India and
worldwide.
ORGANIZATION PERFORMACE

In one of the previous articles, we published on the blog, we discussed about

FMCG sector funds and how they have given consistent returns in the past 3 or
5 years or even more. Now today once again, I want to write something on FMCG
stocks or FMCG sector on this blog as I consider it to be one of the safest and
high return generating sector especially when I see the past performance. The
top performing mutual funds of the past one year belong this category only i.e
SBI Magnum FMCG Fund.

Full Form of FMCG is "Fast Moving Consumable Goods" FMCG Sector consists of
companies like parle, Colgate, Dabur, Pamolive, ITC, Gillette and many others
whose consumption is not going to be affected even if the inflation turns 10% or
government releases a GDP growth rate of 6% which may be below the stock
market expectations (at least less vulnerable to bad economic times as
compared to other sectors) because these companies produce items of daily
consumption like tooth brush, hair oil, tooth paste, face creams, biscuits etc. and
their consumption is hardly affected (at least remain constant) during bad times.

INDUSTRY SPECIFICS

High seasonality volume of loads increases rapidly during peak season Short
delivery lead times High degree of importance for on-time delivery and carrier
performance Transportation cost represents a significant portion of total cost of
sale Large amount of EXW deliveries with little predictability of truck arrival
times Low visibility on empty returns for crates, bottles, pallets Worldwide,
solutions are built on an in-depth understanding of supply chain processes. Our
products address the ongoing collaboration with customers from the CPG and
FMCG industries and the issues that arise from having to work with their
customers in the retail industry.
The PARLE product range is a genuine treat for every snack lover. The biscuit
alone has such variety, catering to diverse platters, there's something for
everyone. And the tantalizing array of sweetmeats is just the cherry on top.
PARLE Biscuits Parle biscuits are linked with factors of power and wisdom
providing nutrition and strength. Parle biscuits are indeed much more than a
tea-time snack, they are considered by many to be an important part of their
daily food. Parle can treat you with a basket of biscuits which are not only
satisfying but are also of good and reliable quality. Parle biscuit cater to all tastes
from kids to senior citizens. They have found their way into the Indian hearts
and home.

PARLE-G

For over 65 years, Parle G has been a part of the lives of every Indian. From the
capped mountains in the north to the sultry towns in the south, from back
villages, Parle G has nourished, strengthened and delighted millions.

Filled with the goodness of milk and wheat, Parle G is not just a treat for the
tastebuds, but a source of strength for both body and mind. Tear over a packet
of Parle G to experience what has nourished Generations of Indians since last
sixty five years, making it truly Hindustan Ki Taakat.
Various people have various reasons to consume it, some consume it for the
value it offers while others consume it for sheer taste, For some it is a meal
substitute for others it is a tasty healthy nourishing snack. Patterned by millions
surfer for all this qualities, it is much more than just a biscuit brand.

Little wonder then why is it the largest selling Biscuit brand in the World.

Pack Sizes available:

19 G, 44 G, 44 G, 66 G, 93.5 G, 231.5 G, 346.5 G, 400 G, 462 G,576.5 G, 935 G

KRACK JACK

The original sweet and salty biscuit is one of the most loved biscuits in the
country. It's not just a biscuit, it's the taste of relationships captured in a biscuit.
A little sweet and a little salty. crafted in such a delicate and delicious balance,
you can never get enough of it. Have it anytime you like with anything you like.

MONACO

Share the company of great taste anytime, anywhere with Monaco. A light crispy
biscuit sprinkled with Salt, Monaco adds a namkeen twist to life's ordinary
moments.

Pack Sizes available: 75 G, 120 G, 240 G

MILK SHAKTI

From boy-next-door to Super Boy that's not the plot for the next Hollywood
blockbuster it's the effect of Milk Shakti. The Shakti of milk fortified with the
goodness of honey, a zabardast combo that even ace batsman Dhoni swears by.
So, get that cape out and head straight to for a pack of Milk Shakti today.

Packet Sizes available: 75 G, 150 G

KREAMS

Orange Tickle your senses with Parle Orange Kream - The tangy orange cream
between two scrumptious biscuits makes for a real treat.

Packet Sizes available:90 G, 180 G

PARLE 20-20

Parle presents 20-20 Cashew and butter cookies where every cookie is baked
too perfection to deliver the perfect taste and aroma. A mouth-melting
experience of premium cashews and rich butter in every bite you take, Parle's
new 20-20cookies promises a combination of crunch and scrumptious delicacy.

Packet Sizes available:75 G, 110 G, 225 G

PARLE MARIE

Your favorite Marie biscuit, Parle Marie is now even more exciting. It's lighter.
It's crispier. And it's tastier. Making it even more appealing than before. So, the
next time you're hanging out with your buddies, just tear open a pack of Parle
Marie. And immerse yourself in an engaging conversation and an even more
engaging taste.

Packet Sizes available: 88 G, 176 G, 347 G, 400 G

HIDE AND SEEK

The ingredients that go into making this prized cookie are a well-guarded secret.
What is the effect it has on those who eat it. A cookie with a reputation for
romance. Indulge in the sinful taste of Hide and seek and everything that follows
it. Pack Sizes available:25 G, 62 G, 100 G, and 200 G

NAMKEEN

A crispy cracker that adds a namkeen zing to the usual biscuit. Goes well with a
cup of tea, an evening snack or an occasional namkeen thought. Just bite in and
let the rich golden texture melt in your mouth.

Packet Sizes available: 75 G, 150 G

PARLE CONFECTIONERIES

Right from candies to toffees, the sweet 'n' treat category of the Parle product
range is a genuine treat for every snack lover. This category can satisfy one's
taste and at the same time create a desire for more. These confectioneries are
as delight to the taste buds and have a universal appeal. Parle Biscuits and
confectioneries, continue to spread happiness & joy among people of all ages.

MELODY

Caramel meets chocolate to yield an outcome nothing less than delectable. Parle
Melody comes with an irresistible layer of caramel on the outside and a
delightful chocolate filling within. Pop it in your mouth and relish the unique
experience. It won't be too long before you find yourself asking the ages old
question 'Melody itni chocolaty kyuu h??"

ORANGE BITE

Small. Oval. Orange. We've kept it simple with the Parle Orange candy. And for
over 50 years this deceptively simple candy has kept the taste buds of the entire
in a flurry. The first product to be launched from the House of Parle and clearly,

MANGO BITE

Need a quick escape from everything ordinary? Just pop a Mango Bite and dive
into a tropical mango paradise. Sit back, roll it around and enjoy one wave after
another of juicy mango treats that go on and on and on.

Usage instruction: A juicy goli best enjoyed hmmmmmm Slowly.

KACCHA MANGO BITE

The glider got copied and became a jet plane. Western hits got copied and
became Anu Malik songs. The typewriter got copied and became a keyboard.
Similarly, we have managed to copy the tangy flavor of raw mangoes in a candy
which is a little sour, a little sweet and certainly a little mischievous. We call It
Kaccha Mango Bite. It truly is a "kacche aam ka copy.”

KISMI TOFFEE

It's everything that the Kismi Toffee Bar is, only smaller. Wrapped in the distinct
flavor of claichi (cardamom) this toffee is sure to send your sweet tooth on a
joyride.

KISMI GOLD (NEW)

Romantically sweet indulgence is what comes to the mind while talking about
the all time favorite Parle Kismi. After romancing with everyone's senses for over
two decades, Parle Kismi is now even better and even more romantic. With a
perfect blend of Caramel & Elaichi, the new Parle Kismi Gold is bound to take
romance to an entirely different level and make it more irresistible than ever
before. Have one to experience romance at its best.

PARLE SMOODH (NEW)

Indulge in the silky, creamy and rich taste of Parle Agro’s flavoured milk range,
SMOODH. Available in 4 yummy flavors : Chocolate Milk, Toffee Caramel, Coffee
Frappé & Hazelnut Chocolate. SMOODH satisfies your craving for a quick energy
boosting, sweet fix that is absolutely divine. Crafted combining the finest quality
ingredients and goodness of milk, SMOODH is a deliciously wholesome and
nourishing offering that will not just tingle your taste buds, but liven up your day
in a healthy way. The delectable Smooth range of products is available in 85 ml
Tetra Pack priced at just Rs. 10.
PARLE SNACKS

Salty, crunchy, chatpata and crispy caters to the bunch of Parle snacks. You can
now treat your loved ones with this yummy lot. Parle snacks are a complete
delight to the taste buds and can create the desire for more and more. These
snacks will not only satisfy your tummy but will also sustain a feel in your mouth
to associate you with the bond of Parle.

PARLE CHEESELINGS

Like cheese? Then you'll just love the light crispy taste of Monaco Bites
Cheeselings. Tiny crispy squares dipped in cheese that'll instantly melt in your
mouth. Makes for a perfect snack anytime, anywhere.

Pack sizes available:

Cheeseling Jar-175 G, 350G

Cheeseling Tin-3.75KG.

MUSST BITES (NEW)

Try as you might, you just can't resist the temptation of Musst Bites. A snack
pack with a dangerously addictive taste, Musst Bites is the latest addition from
the House of Parle. Available in a range of flavours like chatpata chaat, mast
masala, tangy tomato and green spice, this snack is sure to keep you munching
all day.
Pack sizes available:30 G, 60 G.

SIXER

Think Square is boring? Then what you need is a Sixer. This six-sided, salted
delight cuts out the boring from a biscuit. A unique shape coupled with an
equally unique crunchy, munchy, salty taste that leaves you asking for more!
Pack sizes available: Sixer Jar-200 G; Sixer Tin-5 Kg.

ORANGE FLAVOR BISCUIT

Ingredients of Orange Flavor Biscuits: Wheat Flour, fruit Products, Sugar,

Hydrogenated Vegetable Oil, Invert Syrup, Starch, Malto Dextrin, Soya lecithin
(322), Salt, Sodium Bicarbonate (500).
BOURBON BISCUIT

Our bourbon cream biscuits connoisseurs will find their fetish become more
rewarding. Deliciously sugar coated these Bourbons come with a chocolate
cream centre, making them an irresistible temptation.

CHOCOLATE CREAM

Wholesome chocolatey goodness now enveloped in crispy biscuits with Parle

Chocolate Cream Treat. Ingredient list: Wheat Flour, Sugar, Partially
Hydrogenated Edible Vegetable Oils, Invert Syrup, Cocoa.

ELAICHI CREAM BISCUIT

Enriched with the goodness of elachi, this cream biscuit will indulge your taste
buds. The natural tasting cream will ensure you a treat you won't forget.
Ingredient list: "Wheat Flour, Sugar, Partially.
CRISPY CRACKER NIMLIN BISCUIT

A crispy cracker nimkin biscuits that adds a namkeen zing to the usual biscuit.
Goes well with a cup of tea, an evening snack or an occasional namkeen thought.
Just bite in and let the rich golden texture.

PINEAPPLE CREAM BISCUIT

Ingredients of Pineapple Flavour Biscuit :- Wheat Flour, fruit Products, Sugar,

Hydrogenated Vegetable Oil, Invert Syrup, Starch, Malto Dextrin, Soya lecithin
(322), Salt, Sodium Bicarbonate (500).
From cooling conveyor sum biscuits are diverted through AUTO FEEDING
MACHINE to another stalking machine where packing is done. From stalking
table the biscuits are moved on conveyor to MULTI PACK WRAPPING MACHINE
were 16 biscuits are packed into a regular parle g wrapper so that the weight of
16 biscuits comes up to 100 grams.

Then 24 packets of parle g biscuits are packed into a POLY BAG. And after
packing it into poly bag it is sent to SEALING MACHINE where it is sealed. Then
it is sent to CORRUGATE BOX SECTION in which 6 poly bags are placed and then
the boxes are kept on conveyor and sent to DISPATCH SECTION from where the
biscuits are sent to various places in India and all over the world.

INVENTORY

The inventory of the company that is the raw material is of a week. They store
such inventory in store room and then are sent for testing in laboratory and after
testing it is sent for production.

SHIFTS

There is nearly 10,000 employees working in the company and are working in
three shifts.35,000 tons of biscuits are manufactured in a day of one particular
product, and there are such nine product manufactured in the factory.

WASTAGES

There are two type of wastage in factory. First is the waste materials fallen on
ground. Such waste material is of 1% which is marginal and acceptable which
goes into total waste. Second types of waste are the biscuit collected in tray of
the multi-pack wrapping machine, since these biscuits are broken they are not
packed and sold to the customer but collected à other tray and sold as broken
pieces and sold for less price for cattle feeding.
LOOSE BISCUITS

On the stalking table one to two rows of baked biscuits are kept aside for selling
it as loose biscuits. They are normally assumed to be damaged biscuits but they
are not damaged or broken but company keep such loose packets of biscuits to
sell it to the local people for marginal rate of 33 Rs/kg.
MAJOR CHALLENGES FOR THE ORGANIZATION

Parle G has been the category leader with almost a 70% market share. The
world's largest selling biscuit brand faced the first organized market competition
only in 1996 with the launch of Britannia's Tiger Glucose biscuits and in 2003with
ITC's Sunfeast. Tiger's aggressive brand imagery and Sunfeast's aggressive
distribution strategy and contemporary brand imagery has taken a toll on
ParleG.

Parle G, from its first communication in 1982 traveled through many positions
and territories - "Values of life" to "Achievement" to "G for Genius" that
projected today's kid as an allrounder. One common intrinsic value that Parle G
communications leveraged through all the creative positions was "Strength".
But strength was generic to the category and all brands used strength in higher
communication in passive or aggressive manner.

Our challenge was to add a new emotional layer to the existing core value of
strength to arrive at a platform that was unoccupied, competitive, sustainable,
and contemporary and was true to the category, brand and consumer.

IDEA

The concept of 'Made in India' has become a reflection of India's arrival on the
world map. There is an immense pride in being Indian as well as show casing
ones 'Indianness". The brand leveraged the feeling of Indian pride and
communicated and everything Indian. It focused on Indians who are a blend of
traditional values with a modern, progressive and contemporary outlook to
those who take pride in being Indian.

Bearing the task of refreshing the brand image, we also needed to move beyond
the usual Parie G Target audience of kids and mothers. Therefore, the audience
was widened to encompass all age groups and economic strata through rural
and urban India, in short-every Indian.

SOLUTION

To effectively communicate such a huge idea, it was inevitable that we comb

through the urban and rural India in a large, expansive way and spread our
message clearly across at the same time.
This made it imperative that we fully explore the medium of Television. A
television commercial of epic proportions was created. It was shot in different
parts of the country and laminated every Indian's idea of strength and its
benefits. On airing, the channel choice was deliberately restricted to high reach
channels including DD. News channels and family entertainment channels were
also chosen for their delivery on numbers. The television commercial was
supported by point of sale, using visuals of the film, which were interestingly
carried across all points of sale materials.
BISCUIT INDUSTRY IN INDIA

Biscuit industry in India in the organized sector produces around 60% of the total
production, the balance 40% being contributed by the unorganized bakeries.
The industry consists of two large scale manufacturers, around 50 medium scale
brands and small-scale units ranging up to 2500 units in the country, as at 2011-
12. The unorganized sector is estimated to have approximately 30,000 small
&tiny bakeries across the country. The annual turnover of the organized sector
of the biscuit manufacturers (as at2010-11) is Rs. 4,350 crores. In terms of
volume biscuit production by the organized segment in 2010-11 is estimated at
1.30 million tonnes. The major Brands of biscuits are Britannia, Parle Bakeman,
Parle G, Elite, Cremica, Dukes, Anupam, Craze, Nezone, besides various
regional/State brands.

Parle Products has one factory at Mumbai that manufactures biscuits &
confectioneries while another factory at Bahadurgarh, in Haryana manufactures
biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in
Rajasthan and at Bangalore in Karnataka. The factories Bahadurgarh and
Neemrana are the largest such manufacturing facilities in India. Parle Products
also has 14 manufacturing units for biscuits & 5 manufacturing units for
confectioneries, on contract. All these factories are located at strategic
locations, so as to ensure a constant output & easy distribution. Each factory has
state-of-the-art machinery.

All Parle products are manufactured under the most hygienic conditions. Great
care is exercised in the selection & quality control of raw materials, packaging
materials & rigid quality standards are ensured at every stage of the
manufacturing process. Every batch of biscuits & confectioneries are thoroughly
checked by expert staff, using the most modern equipment.

Biscuits were very much a luxury food in India, when Parle began production in
1939. Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of
brands.

However, during the Second World War, all domestic biscuit production was
diverted to assist the Indian soldiers in India and the Far East. Apart from this,
the shortage of wheat in those days, made Parle decide to concentrate on the
more popular brands, so that people could enjoy the price benefits.

Thankfully today, there's no dearth of ingredients and the demand for more
premium brands is on the rise. That's why; they now have a wide range of
biscuits and mouthwatering confectionaries to offer. Parle G, from its first
communication in 1982 traveled through many positions and territories –
"Values of life" to "Achievement" to "G for Genius" that projected today's kid as
an allrounder.

One common intrinsic value that Parle G communications leveraged through all
the creative positions was "Strength". But strength was generic to the category
and all brands used strength in their communication in passive or aggressive
manner. Our challenge was to add a new emotional layer to the existing core
value of strength to arrive at a platform that was unoccupied, competitive,
sustainable, and contemporary and was true to the category, brand and
consumer.

Parle G has been the category leader with almost a 70% market share. The
world's largest selling biscuit brand faced the first organized market competition
only in 1996 with the launch of Britannia's Tiger Glucose biscuits and in 2003with
ITC's Sunfeast. Tiger's aggressive brand imagery and Sunfeast's aggressive
distribution strategy and contemporary brand imagery has taken a toll on
ParleG.

Parle Products also has 14 manufacturing units for biscuits and 5 manufacturing
units for confectioneries, on contract. Parle Products with its wide platter of
offering of biscuits and sweets like Parle-G, Krackjack, Monaco, Melody, Mango
bite and many others since 1929 is also actively engaged to change & uplift the
social face of India. As a part of Corporate Social Responsibility Policy Parle is
keenly involved in the overall development of younger generation with focused
endeavor to build a New Face of India and spread happiness & joy all over. Parle
Centre of Excellence as an institution is dedicated to enrich the lives of people
through conducting various cultural programs across all region to facilitate the
all-round development of the children. Every year, Parle organises Saraswati
Vandann in the state of West Bengal during the festival of Saraswati Puja,
inviting schools from all across the state to participate. The event is one of much
fanfare and celebration, keeping alive the culture and traditions of ages.
Our involvement in cultural activities has seen the inception of "Golu Galata" in
Tamil Nadu, held during Navratri. Its gives a platform to all the members of a
household to showcase their creativity and being judged by immanent
personalities. Thousands of families participate and celebrate the occasion on a
grand scale. These events give us a chance to interact with children on a one-to-
one basis, and promote our belief of fun and health for the whole family. Parle
Products has been India's largest manufacturer of biscuits and confectionery, for
almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host
of other very popular brands, the Parle name symbolizes quality, nutrition and
great taste. With a reach spanning even the remotest villages of India, the
company has definitely come a very long way since its inception. Many of the
Parle products - biscuits or confectioneries, are market leaders in their category
and have won acclaim at the Monde Selection, since 1971. With a 40% share of
the total biscuit market and a 15% share of the total confectionary market in
India, Parle has grown to become a multi-Millions dollar company. While to
consumers it's a beacon of faith and trust, competitors look upon Parle as an
example of marketing brilliance. Many of the Parle products biscuits or
confectioneries, are market leaders in their category and have won a claim at
the Monde Selection, since 1971. With a 40% share of the total biscuit market
and a 15% share of the total confectionary market in India, Parle has grown to
become a multi-millions dollar company. While to consumers it's a beacon of
faith and trust, competitors look upon Parle as an example of marketing
brilliance. PRODUCTS For the second, Parle Products Private Ltd has withdrawn
the variants of its chocolate-chip cookie brand, Hide & Seek. Having extended
the Hide & Seek franchise early last year to two new flavors butter and cashew,
almond the biscuit major has now restricted it to chocolate-chip cookie. It has
decided to bring them under the Parle franchise and re-named the same as Parle
Cookies. The brand is currently being test marketed in the south. Explaining the
rationale behind withdrawing the variants, Mr. Mayank Shah, Product Manager,
Parle Products Private Ltd, said: "Hide & Seek has a strong association with
chocolate. It has always been accepted as a chocolate chip cookie brand and
people were not ready to accept the butter and cashew variants. We have now
de-linked the variants and re-introduced them as Parle Cookies. The products
will soon be re-launched nationally." Early last year, Parle Products had pitted
its Hide & Seek variants against Britannia's Good Day Cookies at the premium
end of the biscuit market. However, this was not the first time that Parle was
introducing variants under its Hide & Seek brand.
Pioneering the chocolate-chip cookie category with its Hide & Seek brand in
1998, Parle had subsequently extended the brand into three variants - orange,
coffee and mint. However, poor off lake led the company to discontinue these
products while the Hide and Seek chocolate-chip cookies continued to be
successful.

Meanwhile, Parle has pegged its growth rate between 12-13 per cent this year.
With no intentions of dropping prices for any of its brands, the company expects
to drive further penetration for its flagship glucose brand, Parle G, along with
brands such as Monaco and Krack Jack. "We still have a long way to go in biscuits.
It is not availability but acceptability which is an issue with consumers," says Mr.
Shah. In the confectionery category, Parle Products has pegged its growth rates
at 15 per cent for its brands such as Poppins, Melody and Mango Bite. "We have
to maintain our prices for our confectionary brands to protect our bottom line
since. even with a 50 paise increase in price the volumes go down by more than
100 per cent," says Mr Shah. Get your biscuit goodies: Grab your sweets.

Parle-G Melody Krackjack Mango Bite Krackjack Crispy Creams Kaccha Mango
Bite Monaco Poppins Kreams Kismi Toffee Hide and Seek Kismi Gold Hide & Seek
Milano Orange Candy Digestive Marie XHale Parle Marie Munch on snacks! Milk
Shakti Musst Bites Mayfair Cookies Monaco Bites Cheeslings Nimkin Sixer
PRODUCT QUALITY Hygiene is the precursor to every process at Parle. From
husking the wheat and melting the sugar to delivering the final products to the
supermarkets and store shelves nationwide, care is taken at every step to ensure
the best product of long-lasting freshness. Every batch of biscuits and
confectioneries are thoroughly checked by expert staff, using the most modern
equipment hence ensuring the same perfect quality across the nation and
abroad. Concentrating on consumer tastes and preferences, the Parle brand has
grown from strength to strength ever since its inception. The factories at
Bahadurgarh in Haryana and Neemrana in Rajasthan are the largest biscuit and
confectionery plants in the country. The factory in Mumbai was the first to be
set up, followed soon by the one in Bangalore, Karnataka. Parle Products also
has 14 manufacturing units for biscuits and 5 manufacturing units for
confectioneries, on contract. EXPORT EXPORT IMPORT Parle Products Pvt. Ltd.
Is a US $ 450 million conglomerate started in India in 1929. We are in the
business of manufacturing and marketing biscuits and confectionaries.

SWOT ANALYSIS OF PARLE PRODUCTS

STRENGTH

1. Low price as compared to competitors

2. Sizeable market share in the country.

3. Offers variety of products under its brand.

4. Different sizes of packets are available.

5. An experienced team of sales and marketing.

6. Deep and effective coverage.

7. Largest distribution system.

WEAKNESS

1. Breakage of biscuits while delivering to retailers.

2. No proper replacement system for broken biscuits to retailers.

3. Improper and irregular supply.

4. Less share in Premium biscuit market.

5. Dependent on its flagship brand, Parle-G

6. Poor packaging in family pack of glucose biscuits.

7. Lack of schemes for retailers and distributors.

OPPORTUNITY

1. Rising demand for innovative packaging in packaged foods.

2. Retaining loyal retailers or wholesalers.

3. Improving supply system for established brands.

4. Huge scope for some Parle products in medical shops.

5. Information revolution brought about by the television.

6. Good scope for snacks and namkeens, if launched and properly promoted by
Parle.

THREAT

1. Highly advertised brands such. Britannia.

2. Ever increasing competition from multinationals and local companies.

3. Emerging substitutes like wafers, snacks and toast.

4. Margin war among the major Brands.

SCOPE OF STUDY
FMCG Sector is a growing sector in India at high pace. Biscuit manufacturing
industries has lot of scope in the Indian economy. Company manufactures
according to the consumer's interest. There is a high competition in biscuit
manufacturing industry's such as Parle-G, Sunfeast, Priya gold, etc. consumer
prefers to take that product which not only satisfy him but also his colleagues,
family, natives. This study helps in determining right choice for them.

The scope of the study is identified after and during the study is conducted. The
study of analysis cost of capital. Further the study is based on last5 years Annual
Reports of Jain Irrigation Systems Ltd. And even factors like competitor’s
analysis, industry analysis were not considered while preparing this project.

LIMITED DATA:-This project has completed with annual reports; it just

constitutes one part of data collection i.e. secondary. There were limitations for
primary data collection because of confidentiality.

LIMITED PERIOD:- This project is based on five year annual reports. Conclusions
and recommendations are based on such limited data. The trend of last five year
may or may not reflect the real cost of capital position of the company.

LIMITED AREA:- Also it was difficult to collect the data regarding the competitors
and their financial information. Industry figures were also difficult to get.
It describes the data collection method, The study requires the data to be
collected from secondary source, the secondary data through the various
journals and newspapers.

RESEARCH DESIGN:

Research design is the blue print of any problem. It is a plan for collection,
analysis and interpretation of data in a manner that is relevant to the research
purpose with economy in procedure.

COLLECTION OF DATA:

It was collected from internal sources. The secondary data was collected on the
basis of organizational file, official records, newspapers, magazines,
management books, preserved information in the company's database and
website of the company.

DATA SOURCES:

*News papers

*Magazines

*Internet

*Annual Report of the company

*And other related sources

1.Absence of Senior Authority.

2.Lack of time.

3.Insufficient Knowledge.

4.Absence of Proper guide.

5. No proper data was available about the stores in the city.

6. As the nature of research was exploratory so it was difficult to cover each and
every retailer.

7. Many retailers don't express their original perception and views because of
biasness.
 DATA PRESENTATION AND ANALYSIS

After the PARLE factory as industrial visit the researchers analyzed that the
bestselling branded biscuit company offers its customers with large variety of
biscuits (parle-g, krack-jack, Monaco, hide and seek etc.), confectionaries
(mangobite, melody, poppins) and snacks (Musst bites) It aims "TO SERVE
PEOPLE AND NATION"

The privately owned self-financed company provides motivation and confidence

to its staff and other related members by providing various facilities and
organizing certain events. It has a very open work culture. The atmosphere is so
comfortable and relaxed that helps in increasing productivity and efficiency. It
lunches and outstation team-building exercises that augment inter personal
relations and mutual understanding.

COST OF RETAINED EARNINGS

1. May be defined as the opportunity cost in terms of dividends foregone By

withheld from the equity shareholders.

2. Cost of retained earnings is the same as the cost of an equivalent fully

subscribed issue of additional shares, which is measured by the cost of equity
capital.

3. Retained earnings are "dividends withheld", that is, if were in the hands of the
investors (shareholders) they could have earned on these by investing
somewhere else.
 BALANCE SHEET OF PARLE PVT. LTD.

Year ended 31/03/2013 Year ended 31/03/2012

SOURCES OF FUNDS
Shareholders fund:
Share capital 423.93
Share application money 0.09
Reserve and surplus 3264.74 3688.66 3218.92 3641.84
Loan funds:
Secured loan 2404.67 2398.91
Unsecured loan 4370.97 6775.64 4087.21 6486.12
Deferred tax liability (net) 534.19 534.02
TOTAL 10998.49 10661.98
APPLICATION OF FUNDS
Fixed assets:
Gross block 8138.98 7808.44
Less accumulated 3400.04 3006.42
depreciation
Net block 4738.94 4802.02
Capital work-in-progress 430.85 5169.79 227.68 5029.7
Investment 1416.73 740.46
Current assets, Loan &
advances
Inventories 1577.1 2283.94
Sundary debtors 413.76 361.68
Cash and bank balance 243.32 330.84
Loan advances 3542.56 3104.82
5775.74 6081.28
Less: current liability @
provision
Current liability 1048.49 1028.47
Provision 323.08 172.76
Net current assets 4404.17 4880.05
Miscellaneous expenditure 7.8 11.77
Total 10998.49 10661.98
 PROFIT AND LOSS ACCOUNT

Year ended 31/03/2013 Year ended 31/03/2012

Income from operations
Turnover

Sales 724730
Subsidiary 956127 1680856 7387.70 32933.30
Other Revenues 841.58 25546.60 499
Increase/decrease 288.61 290.51
in stock
17361.61 33722.81

Less: cost of operation

Consumption of material stores etc.

Raw Material 671444 1399722

Stores Spares 110.10 10834
Chemicals 4352 4138
Packing Material 20449 200.39
Power, fuel and 63989 98180
water
 ANALYSIS OF COST OF CAPITAL
The balance sheet provides information on what the company owns (its assets),
what it owes (its liabilities) and the value of the business to its stockholders (the
shareholders' equity) as of a specific date. It's called a balance sheet because the
two sides balance out. This makes sense: a company has to pay for all the things
it has (assets) by either borrowing money (liabilities) or getting it from
shareholders (shareholders' equity).

. Assets are economic resources that are expected to produce economic benefits
for their owner

. Liabilities are obligations the company has to outside parties. Liabilities

represent others' rights to the company's money or services. Examples include
bank loans, debts to suppliers and debts to employees.

. Shareholders' equity is the value of a business to its owners after all of its
obligations have been met. This net worth belongs to the owners. Shareholders'
equity generally reflects the amount of capital the owners have invested, plus
any profits generated that were subsequently reinvested in the company.

The balance sheet must follow the following formula:

ASSETS = LIABILITIES+CAPITAL

Cash - This is what the company has in cash in the bank. Cash is reported at its
market value at the reporting date in the respective currency in which the
financials are prepared. Different cash denominations are converted at the
market conversion rate.

Marketable securities (short-term investments) - These can be both equity

and/or debt securities for which a ready market exists. Furthermore,
management expects to sell these investments within one year's time. These
short-term investments are reported at their market value.

Accounts receivable - This represents the money that is owed to the company
for the goods and services it has provided to customers on credit. Every business
has customers that will not pay for the products or services the company has
provided. Management must estimate which customers are unlikely to pay and
create an account called allowance for doubtful accounts.

Variations in this account will impact the reported sales on the income
statement. Accounts receivable reported on the balance sheet are net of their
realizable value (reduced by allowance for doubtful accounts).

. Notes receivable - This account is similar in nature to accounts receivable but

it is supported by more formal agreements such as a "promissory note" (usually
a short-term loan that carries interest). Furthermore, the maturity of notes
receivable is generally longer than accounts receivable but less than a year.
Notes receivable is reported at its net realizable value (the amount that will be
collected).

. Inventory -This represents raw materials and items that are available for sale
or are in the process of being made ready for sale. These items can be valued
individually by several different means, including at cost or current market
value, and collectively by FIFO (first in, first out), LIFO (last in, first out) or
average-cost method. Inventory is valued at the lower of the cost or market
price to preclude overstating earnings and assets.

Prepaid expenses These are payments that have been made for services that
the company expects to receive in the near future. Typical prepaid expenses
include rent, insurance premiums and taxes. These expenses are valued at their
original (or historical cost).

Long-Term assets - These are assets that may not be converted into cash, sold
or consumed within a year or less. The heading "Long-Term Assets" is usually
not displayed on a company's consolidated balance sheet. However, all items
that are not included in current assets are considered long-term assets. These
are:

Investments - These are investments that management does not expect to sell
within the year. These investments can include bonds, common stock, long-term
notes, investments in tangible fixed assets not currently used in operations (such
as land held for speculation) and investments set aside in special funds, such as
sinking funds, pension funds and plan-expansion funds. These long-term
investments are reported at their historical cost or market value on the balance
sheet.

Fixed assets - These are durable physical properties used in operations that have
a useful life longer than one year. This includes: Machinery and equipment. This
category represents the total machinery, equipment and furniture used in the
company's operations. These assets are reported at their historical cost less
accumulated depreciation. Buildings or Plants - These are buildings that the
company uses for its operations. These assets are depreciated and are reported
at historical cost less Accumulated depreciation.

Land- The land owned by the company on which the company's buildings or
plants are sitting on. Land is valued at historical cost and is not depreciable under
U.S. GAAP.

. Other assets - This is a special classification for unusual items that cannot be
included in one of the other asset categories. Examples include deferred charges
(long-term prepaid expenses), non-current receivables and advances to
subsidiaries.

Intangible assets - These are assets that lack physical substance but provide
economic rights and advantages: patents, franchises, copyrights, goodwill,
trademarks and organization costs. These assets have a high degree of
uncertainty in regard to whether future benefits will be realized. They are
reported at historical cost net of accumulated depreciation.

Total Liabilities

Current liabilities - These are debts that are due to be paid within one year or
the operating gel, whichever is longer. Such obligations will typically involve the
use of current assets, the era of another current liability or the providing of some
service.

Usually included in this section are:

Bank indebtedness This amount is owed to the bank in the short term, such as a
bank line of credit.
Accounts payable - This amount is owed to suppliers for products and services
that are delivered but not paid for. Wages payable (salaries), rent, tax and
utilities - This amount is payable to employees, landlords, government and
others.

Accrued liabilities (accrued expenses) - These liabilities arise because an

expense occurs in a period prior to the related cash payment. This accounting
term is usually used as an all-encompassing term that includes customer
prepayments, dividends payables and wages payables, among others.

. Notes payable (short-term loans) - This is an amount that the company owes
to a creditor, and it usually carries an interest expense.

. Unearned revenues (customer prepayments)- These are payments received

by customers for products and services the company has not delivered or for
which the company has not yet started to incur any cost for delivery.

Dividends payable - This occurs as a company declares a dividend but has not
yet paid it out to its owners.

Current portion of long-term debt -The currently maturing portion of the long-
term debt is classified as a current liability. Theoretically, any related premium
or discount should also be reclassified as a current liability.

. Current portion of capital-lease obligation - This is the portion of a long-term

capital lease that is due within the next year.

Long-term Liabilities

These are obligations that are reasonably expected to be liquidated at some

date beyond one year or one operating cycle. Long-term obligations are
reported as the present value of all future cash payments. Usually included are:

. Notes payables- This is an amount the company owes to a creditor, which

usually carries an interest expense.

. Long-term debt (bonds payable) - This is long-term debt net of current portion.

. Deferred income tax liability GAAP allows management to use different

accounting principles and/or methods for reporting purposes than it uses for
corporate tax fillings to the IRS. Deferred tax liabilities are taxes due in the future
(future cash outflow for taxes payable) on income that has already been
recognized for the books. In effect, although the company has already
recognized the income on its books, the IRS lets it pay the taxes later due to the
timing difference. If a company's tax expense is greater than its tax payable, then
the company has created a future tax liability (the inverse would be accounted
for as a deferred tax asset).
 FINDINGS

After close study of the present market situation prevailing in the areas
assigned the researchers, following are the observations.

1. Availability of all the products is not uniform in all the towns. For
instance, the supply is not meeting the demand in particular areas
or shops.
2. Golden Arch and Nimkin, newly launched products, have very less
availability.

3. Breakage problem in the Family packs of glucose biscuits is leading

to the decline in sales in this category.

4. Schemes, Discounts, offers, coupons etc. are not reaching to the

retailers and customers whereas Priya gold and ITC on the other
hand are doing that.

5. Retailers and even wholesalers are not satisfied with the supply
system of Parle.

6. It was found that Parle (especially Parle-glucose) is most favored

brand and is sold most. Parle biscuits are the retailers and
consumers prime choice.

7. Very little range of Parle biscuits were visible in organized retail

outlets.

8. Musst bites is not accepted by the general masses due to its

dissatisfying taste.

9. Lack of marketing efforts for the promotion of new products like

Golden Arch, Nimkin.
 SUGGESTIONS
1. Company should start a program for the loyal retailers and
wholesalers to reduce their complaints by providing timely supply and
replacement. This will help in increasing their sales.
2. The packaging of Parle Glucose biscuits (1/2 and 1kilograms packs)
must be improved for its better sales. The company should come up
with double packaging as people refuse to buy family pack biscuit with
loose packaging.
3. Salesmen should be properly dressed and should have good
communication skills to effectively promote the new products recently
launched, by making sure that the product reaches each and every
retailer and also increase the visibility of the products by arranging
the product clearly on the shelf or rack and show its prominence.
4. To increase the number of Stock keeping units (SKU) available in the
retailer’s store. Each salesman should stress the retailers to keep the
maximum SKUs and to maintain these SKUs Brought out. With this, the
replacement of the damaged and expired biscuits should be prompt
and without any hassles, so that retailer can be saved from the loss of
the expired and damaged goods.
5. Company should adopt innovative packaging techniques, as they have
their own packaging unit as consumers are highly attracted towards
new packaging.
6. The company should take proper measures that the schemes and
offers are not gulped by the middle men, and that it benefits the
retailers and customers.
7. Britania is emerging as major Competitor in the organized retail
outlets.
 CONCLUSIONS
Every company in its normal course of business at some point of time
requires funds for its operations, expansion, acquisition, modernizations
and replacement of long-term assets. The company obtains funds through
different sources. Every company' objective is to maximize the
shareholder's wealth through its investment projects. Investors are
generally risk-averse and demand a premium for bearing risk. The greater
the risk of an investment opportunity, the greater would be the risk-
premium required by the investors. While making an investment decision,
the company has to take into account the returns expected by the
investors, as they provide the money to the corporate. Under these
conditions investment decisions become crucial to the company because
they are irreversible; having a long-term implication and involve huge
amount of funds. A progressive management should take cost of capital
into consideration while taking any financial decision then only the
financial policy will prove a healthy financial policy. What an individual
firm considers a risky investment and what the financial market considers
a risky investment may not be the same. When a firm has different
operating divisions with different risks, its WACC is an average of the
divisional required returns. HOWEVER, to find the NPV of individual
projects use a discount rate appropriate for that projects level of risk -
not the whole company discount rate.
 BIBLIOGRAPHY

1.www.google.com.

2.www.parleindia.com.

3.www.parleagro.com.

4.www.parleproduct.com.

5.www.dare.co.in.

6.www.hrera.com.