This is case study of Avero India Ltd. which was in booming states but due to some factors which were not focused it lost its growth and eventually it had to closed down.

1. Prepared by-
PM-20-02 Ellen Dcunha
PM-20-03 Rohit Dhumal
PM-20-14 Nihar Parab
PM-20-15 Shantaram Parab
Wavering off:
Avero India Ltd.
PM-20-16 Govind Pathak
PM-20-18 Mansi Pawar
PM-20-19 Riya Potbhare
PM-20-22 Akash Sandilya

2. 1. Introduction
● Direct selling or door to
door selling in India has a
very old history. This
revolution happened in
india in 1982.
ONSET CRITERIA
METHOD CLOSURE
● In India Eureka Forbes
company started selling
water purified brand
Aqua guard and pioneer
in India multilevel
company Medicare.
● They started with 1
center 7 FMGC products
and 400 consultants but
today it has over 100
products 40 centers to
catering to 2700 cities.
● Salesmen began to be
looked down upon.

3. SUSHIL PANDEY AJAY PANDEY
 A young B.com graduate had many
dreams in his eyes
 Started his journey with Fibrochem
Industries, Ghatkopar
 He started as a worker and was then
posted in the accounts department
 He also became involved in the
Administration department.
 Along with this he was waiting for
a better opportunity
 Sushil Pandey's cousin from Bihar
who failed 12th examination
 Relocated to Mumbai in search of
opportunity
 Understanding the scope in stock
market he started investing in stocks
 Even after continuous efforts he faced
huge losses
 He then joined WWI in 1995

4. INCOME LOAD
 Carry a Huge bag and they were called
Educated Coolie
OVERVIEW
 Founded by Murray Reinhardt in
Canada
 Pioneer in case of direct selling
CHALLENGE
2. Wholesale Warehouse Industries (WWI)
 WWI entered India in early 1990’s
 In India, WWI’s selling model
included- Slizer, Tea Coaster, Roaster,
Shaving machine and Glass set
 Salesmen earned about Rs. 300-350
per day

5. WWI bought products from a vendor in Rajkot, Gujrat and attached
an American flag on it
INTRO
WWI started getting exposed as quality of products sold was not
good
CHALLENGE
Salesmen knew company is getting products from Gujrat
PRODUCT
They were working on commission basis and not getting any salary
from company.
BENEFIT
Salesmen were smart, spoke English and well dressed but still WWI
started losing reputation
RESULT

6.  Promotion- Small advertisement in newspaper
 Trainer- sell 20-25 pieces per day for consecutively 15 days
 One day training
 Second day retraining by trainer- communication skills and talking to customer
 Third day salesmen were given goods and a specific territory
 Day off
 Offices were in Andheri, Borivali, Kalyan and Kurla
 Goods were called as Merch
 MRP of product Rs. 100 the salesman got Rs. 15 flat
commission, manager gets Rs. 10 per product sold by all the salesmen working
wqeunder him
2a. Recruitment, Training, Motivation
and Compensation

7. 2b. Schedule
9 am
• Impact Session
10 am
• Everybody moved out for fieldwork
7 pm
• Reporting time in office – handover unsold goods as well as handed over cash
Salesman Trainer
Assistant
Manager
Manager

8. 1st
Downfall started
in 1997 and was
finished majorly
in India
3rd
2nd 4th
2c. Decline
Majorly because
managers and
salesman
realized they can
also buy from
vendors and start
selling
If buying direct
managers were
getting Rs. 35
per product
unlike before Rs
10 per product
Slowly all
salesman and
managers left
and started their
own companies

9. ● After establishing
office in Mangalore,
both Ajay and Sushil
decided to open an
office in New Delhi,
the Capital of India.
● Sushil was
promoted to Assistant
Manager, and for
rapid growth they
decided to open office
even if there are just
3-4 salesmen
A B C D
3. Formation & Growth: Avero India Ltd
● January 1997- Ajay
Pandey left WWI and
opened his own direct
selling company
“Avero Impex”
● April 1997- Sushil
Pandey joined Ajay
Pandey
● Ajay & Sushil
decided to expand
operations in
Bangalore city in
South India.
● Sushil was quite
fluent in English and
also a smart and
handsome guy.
● October 1997-
Sushil was able to
open another office in
Mangalore.
● Both wanted to
expand their
operations very fast in
India due to declining
phase of WWI and
decided to target
WWI in Bangalore.

10.  Sushil used to live in the office only so
it used to be office cum residence
wherever he opened offices.
 His strategy was to always shift
salesmen from established offices to
new offices being opened all over
India.
 Sushil spent 1 year establishing offices in
New Delhi and Punjab.
 In 1999, Sushil went to Gujarat and within
6 months he was able to establish
operations in Ahmedabad, Baroda, Rajkot,
Bhavnagar and Jamnagar.
 When Baroda office was opened then all
the boys were shifted from Bangalore to
Baroda so that salesmen do not run
away.
 Mobiles had come to India, they were
costly and the boys were not given
mobile. Thus for new offices existing
offices salesmen were used.

11.  Ajay used to sit in his head office in Mumbai whereas Sushil was always on the move.
 Sometimes Ajay used to visit offices.
 Based on his experience in WWI Ajay started selling following three products in his company Avero Impex.
 They are;
 The company opened a godown in Mumbai.
 All the products were first brought from vendors and then dispatched to various offices.
 In order to cut costs the company used overnight buses to transport the goods to offices.
1. Slicer( vendor from Gujrat)
2. Frying Pan( vendor from
Mumbai)
3. Glass Set( vendor from Rajkot)

12. Problem Knowledge
Settling Criteria
The basic problem which the
company faced was that as
soon as the salesmen became
senior they would start
becoming negative
 By 1999 the company had
managed to open 30 offices
all over India and started
earning Rs. 40,000 profit
per day.
GROWTH
 Ajay and Sushil realized
that selling Kitchen items
etc. had its own limitations.
They initially thought about
salt but later on decided to
sell washing powder
 They opened “Avero India
Ltd” in June 1999, with
Ajay and Sushil as Directors
with 5 more people. They
started calling salesmen as
“Merchandisers”.

13. Infographics
BEGINNING
The company
decided to put a
manufacturing
plant, and set up
their first plant in
Bhiwandi, near
Mumbai.
LAYOUT
Hindustan Unilever
learnt about sale of Kite
in South India and was
worried as their market
share was being eaten
up by a small startup.
They now rebranded
Kite as Kite Regular
DARE
The company did
all its transactions
in Avero India Ltd
in ‟white” and
dutifully paid all
government fiscal
levies like Excise
duty and Sales Tax.
SETTLING
The company
decided to sell
soaps also.
IMPACT
They also decided
to sell Toothpaste
under brand name
“Anovadent”

14. METHOD
Impact calling
CLOSURE
Departure to field
START
Reporting time of
salesmen
DEFIANCE
Fill up the bags
with “Merch”.
SETTLING
Shouting of
motivational word
“Hoye Hoye” to
pump up salesmen.
8:30am 9:00am 9:00am 9:30am 10:00am
3a. Promotion
- They paid lot of attention towards discipline in the sales force. The daily schedule was

15. Advertisement were put on buses in Mumbai
The company gave advertisements on Zee Cinema in the prime
slot of 6pm to 9pm. The advertisement cost the company Rs.
1.2 million and per day cost of showing
advertisement was Rs. 10,000
The company launched a buy 1kg get 1kg free consumer
promotion scheme at Rs. 60. The company got excellent
response from this scheme and then. The company stopped
selling 1 kg packs at Rs. 30.
Tactics
Promotion
Schemes
Buses
Zee Cinemas

16.  The company created new brands
like- Wega, Fox, Aqua, Boxer, Hugo.
they were sold along with the major
brands like Kite.
 The pricing policy of these new brands
was quite flexible company did not
pay much attention towards quality in
these brands.
 These entrepreneurs also source from
other vendors. The production and sale
from these units is not showed to the
government and thus no excise or sales
tax is paid. All these transactions are
done by using duplicate bills or no
bills at all.
The company bought a
Plant in Surajpur, Noida in
2002 costing Rs. 3.5
million and having
production capacity of 5-6
tons per day. Another plant
was set up in Erode in 2003
costing Rs. 3.5 million,
however no production was
done from this plant.
They opened 10
offices in
Karnataka
including 4 in
Bangalore. They
ventured into
Tamilnadu and
set up first office
in Erode.
They Opened
bigger office in
Bangalore. The
rent paid was Rs.
15,000 monthly
with deposit Rs.
1,00,000.

17. A. They were apprehensive
that if a manager saves lot of
money then he can open his
own business
B. the manager maintains a
car and lives lavishly then
salesmen will be impressed
By this time the
promoters had started
living lavishly. There
were two reasons for this.
The company received a
setback in 2003 when the
Bhiwandi plant was raided
by the Sales Tax officials
who closed down the plant
on suspicion of theft of
sales tax.
By 2003 end, when the
business was down
because of shutdown of
Bhiwandi plant, the
promoters thought to
expand their business by
going into exports.
4. Decline

18. 3
2 4
By end of 2004 the
Indonesian Company
lodged a complaint in
India against misuse
of their brand names.
The promoters had not
studied the market
properly and also did not
conversant themselves
with export laws.
The promoters then
started exporting the
products Giv and
Soclean to Dubai.
1
Vendors in India made
counterfeit products with
same brand names and
packaging but with less
size

19.  The company stopped its operations in Dubai and one manager and Ajay came back to Mumbai.
 Sushil was asked by Ajay to stay put in Dubai.
 But Ajay was job less and for one year he lived a lavish life in Dubai without work .
 Ajay returned back to Mumbai and Sushil operates in Ghana . And response of toothpaste was good .
In 2007 Ajay called Sushil back and said that some other opportunities are there in Mumbai.
 Sushil was sent to Bangalore office of Avero India Ltd. He was shocked to know that the business had gone
down significantly. Because main manager had run away and new manager did not handled properly in
Bangalore.
In 2006 Ajay asked
Sushil let us try our
luck In Africa
Both went to Africa
in 2006 and reached
Accra.
And started Annova
Ghana Ltd company
and started selling
toothpaste with brand
name Rosalinda

20.  Most of the salesmen who were attached to Sushil, when he was heading Bangalore operations had run away.
And Motivation of salesmen went down and there was a rumor floated that perhaps promoters were not
interested in Indian operations and were planning to settle abroad.
 Main reason for company loss there market because main manager who had run away he had started the
malpractice like-
Diluting the quality
of washing powder
Instead of adding
costly slurry he
adding inexpensive
salt
Old manager made
huge malpractice in
money so customer
started complaining
 Some customer who felt cheated had even started beating the salesman.
 In every office manager was maintain the record of goods , expenses , revenue office expenses and
commission had to send the profit back to company
 Sales man and managers realize that promoters are not actively involved in domestic operation so
the started malpractice like funding , accounting and stealing money of company.
 This over all effect is on company so lacked of demand forced the company to close down the plant
in Bangalore and Noida .

21. Blunder in mission of
100 offices and making
same mistake as that of
WWI
Good salary with good
work environment.
Focused on expanding
international business
rather than domestic
Global
BPO
100
Last balance sheet filled
by Avero in ROC office
in Mumbai
2006- 07
Income Statement
2005-06
Sales- Rs. 1.54 million
Loss- Rs. 2.28 million
FALL OFF
2006-07
Sales- Rs. 2.08 million
Loss- Rs. 0.11 million

22. Downfall
Factories Promoters
New
Products
End
Washing powder
business closed &
all factories were
sold off.
Direct selling of
gold plated watches.
Foot Massagers to
stay in the market
Promoters stopped
operations in 2020
and all teams broke
away.

23. Avero should have kept a
check on their accounts and
investments and should have
maintained a budget for each
and every task.
The promoters rushed their
expansion globally which led to
ignorance towards domestic
market.
Avero should have appointed proper
managers to keep a check-on
spurious and counterfiet products.
Proper incentives and bonus
offeres should have been
provided to sales man to
maintain the ethics towards
work
The promoters did not study
international market properly and
directly launched their product.
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5. Conclusion

24. THANK
YOU !!