AN IRATE DISTRIBUTOR : THE QUESTION

OF PROFITABILITY 

TEAM 4
◦AISWARYA V – 1911007
◦SHARMILA K C – 1911088
◦VENKATRAMAN K – 1911115
◦GANESH GOWTHAM B- 1911033
• AN IRATE DISTRIBUTOR : THE QUESTION OF
PROFITABILITY 
• AUTHORS – RENUKA KAMATH, K.K.KISHORE AND SAGAR
SHARMA 
• PUBLICATION- IVEY BUSINESS SCHOOL. 
 • Protagonist- Amit Kumar 
• Predecessor – Rahul Ray 

Summary 
• Boss – Shyam Sharma(Regional Sales manager) 
• Focus – To increase the number of retail outlets and Convince
Mandore to invest more in Nutri Power. 
• Nutri pack India subsidiary od Nutri Pack Limited, a global U.S,-
based food company. 
• Started- 1994 
• Turnover- 7.5 billion 
• Market share – 12% 
• Category- Health food drink 
• Products – Nutriams and Nutri Power(71% contribution of the
company’s revenue). 
JALGAON MARKET 
Sachin Agency-
Largest player in Owned by- Sachin
Outlets covered- 750 
FMCG Distribution Mandore 
Business 

Credit extended to Distribution margin –

market – 15 days  4.5% 
 Nutri Pack limited
(Global US based food company)

Fully Owned Subsidiary

Nutri pack India Limited 

End Consumers
(Manufacturer)

Reginal sales manager- Shyam Sharwa Retail Outlets

Area Sales Manager- Amit Kumar Distributor- Sachin Mandore

Numeric Distribution for Health
Food Drinks
Numeric Distribution for JAM
 Cost per MONTH Total Expenses for
S.NO Heads Nos. Description
(INR) expenses Nutripack

Running Cost (per

1 Motorized Vehicle 2 18,000 36000 12000
vehicle)*
2 Salesman 3 Salary (per salesman) 4,000 12000 4000
3 Salesman 3 Bonus (per salesman) 1,000 3000 1000
4 Driver 2 Salary (per head) 3,000 6000 2000
5 Delivery Boy 2 Salary (per head) 3,000 6000 2000
6 Godown Keeper 1 Salary 3,000 3000 1000
7 Godown Helper 1 Salary 3,000 3000 1000
8 Computer Operator 1 Salary 7,000 7000 2333.333333
9 Computers 1 Running Cost 500 500 166.6666667
10 Printer + Stationery 2 Running Cost (for both) 1,000 2000 666.6666667
as per
11 Internet Running Cost 450 450 150
use
as per
12 Telephone Running Cost 500 500 166.6666667
use

Admin Expense (Electricity, as per

13 Running Cost 500 500 166.6666667
Courier, Stationery) use
14 Godown rent Expenses 1 Rent 21000 21000 7000
Since Sachin Agency was also the distributor for Gloshine, a very
popular brand of soap, and BalKrishna, a local snacks company.
Expenses for nutri pack is divided by 3
Return
Sales Revenue 54 Million
Rs.54000000
Profit Margin 4.500%
Earnings per month 202500
Expenses 33650
Return 168850(Earning - Expenses)

Net investment
Avg Claim Outstanding 180000
Return on investment 93.81%
THANK
YOU