SlideShare a Scribd company logo
1 of 87
ANALYSIS OF OVERALL LOGISTICS(TRANSPORTATION) OF
FMCG COMAPANIES IN BIHAR REGION
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS
OF THE DEGREE OF POST GRADUATE DIPLOMA IN
MANAGEMENT
CHANDRAGUPT INSTITUTE OF MANAGEMENT
PATNA
BY
Danish Anwar
15/06/2014
CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA
Page 2
Page 3
SYNOPSIS
The project "Analysis of existing logistics (Transportation) for FMCG companies in
Bihar region" aims at understanding the current medium of transportation being used by
different FMCG companies in Bihar. As analysts says that the urban market is being
saturated at the same time due to different programs and developments by the
governments the rural market size has been increased by the improvement in living
standard and purchasing power of the people. So, in this situation product availability has
became a major issue for all FMCG companies , and for availability transportation of
goods is one of the major factors of it.
Now talking about Bihar the rural population of Bihar is almost eight times more than
that of urban population(Census:2011). Bihar is mainly separated into two parts by the
holy river Ganges. So, for connectivity between north Bihar and south Bihar there are
three bridges on Ganges Mahatma Gandhi Setup, Rajendra Bridge and Bikramshila
Bridge in Patna, Mokama and Bhagalpur respectively. As far as these all three bridges
were working there was no such issue like the current situation. In 2013 government
banned passage of all kinds of heavy commercial vehicles on Rajendra Bridge due to
safety reasons, as the bridge was not in a good condition. So, all the heavy commercial
vehicle going towards north Bihar started going through mahatma Gandhi Setu .
Mahatma Gandhi setu was itself in a paralyzed condition since last decade. Actually the
maintenance that has to be done to the spring mechanism has not been done by the
government and so, the bridge faced difficulties in standing straight.
Page 4
Due to increase in load on the bridge the condition of bridge went on degrading day by
day .
In 2014 by the order of the Chief minister's office and district transport authority all ten
and above wheelers vehicle were banned for passage from Mahatma Gandhi Setu.
Here starts problem for transportation. Now due to restrictions on bridge need for six and
below wheeler vehicles increased drastically but as the variable cost associated with
multiaxle vehicles does not increase in that proportion as the capacity of the vehicle
increases. So, the transporter and the customer both are having benefit in multiaxle
vehicles. That is why nowadays transporters purchase mainly multiaxle vehicles. As the
supply was short and the demand was high so by the theory of economics price will go
high and that happened in actual also.
FMCG companies already have a very low margin with their products they just play on
volumes and another thing they can't increase the price in a certain territory. So with
these constraints and the price rise in transportation has impacted their business.
Another major issue is the cost associated with the inward delivery to the warehouse, in
this case what happened in the last few years is that earlier there were some commodity
available all the time for transporters to carry in return good while coming to Patna. But
now there is no enough commodity available for transporters. Transporters generally
charge one way freight from the company so the need for return goods is important for
them. As there is no commodity available and also there is no such industry whose goods
can be transported to other states so the transporters starting charging almost double
Page 5
freight and even some of the transporters refused to come to Bihar. This has also
impacted the business of FMCG companies in Bihar.
This project tries explain about the transportation channel used for intra distribution in
Bihar region by some top FMCG players like GCMMF, Parle, Nestle, HUL, GSK &
Coalgate Palmolive, Reckitt Benckiser and ITC.
The second part of project explains about the problems of transportation for C & F or
company, transporter who is involved in inward logistics to Patna and also the
transporters who are responsible for the product availability in Bihar i.e. the transporters
that are involved in intra distribution.
Third part of the project is a little bit analytical and in this part the factors that impact cost
and time of transportation has been analyzed.
The research design is descriptive and data collected is from primary as well as secondary
source. Above mentioned FMCG companies C&F agents were interviewed. The
transporters who were involved in the intra distribution were also interviewed . For the
third part of the project a survey was conducted between transporters. The targeted
population were all the transporters present in Patna. Convenience sampling was used to
collect data. A total of 40 respondents were taken. The literature review done for this
project helped in identification of major factors impacting cost and time of transportation.
The responses were taken on a likert scale of five. After analyzing it was found that
weight of goods is the most impactful variable affecting cost and time followed by
Traffic jam & Road safety and security restrictions.
Page 6
In the fourth part of project after all analysis of problems with transportation system a
suggestion has came out from the analysis. Some other things like route scheduling has
been done.
Problem Statement: Analysis of problem in logistics for FMCG companies at the
current stage due to less availability of commodity & blockage of big vehicles on major
bridges that connects north Bihar to south Bihar.
Research Methodology:
Objectives of Project:
The main objective of the Study can be listed as follows:
A. Primary Objective
1. To study the existing logistics medium used by GCMMF and other FMCG
companies like HUL ,Nestle , GSK & ITC in Bihar region.
2. To find the problems with the existing logistics network at current situation.
3. To find the factors that affect the logistics network in Bihar. (2 years trend
down the line)
B. Secondary Objective
1. To suggest some modification in existing logistics network to minimize cost.
Page 7
Research Design: Descriptive research.
Data sources & Type: The data sources used are both primary as well as secondary.
Primary information was achieved by conducting interviews and survey with the help of
interview guide and questionnaire. The secondary data such as sales data is obtained
from Amul office in Patna.
Research Tool: The main process of data collection was through filling of questionnaire
and interviews. The questionnaire consists of interval questions where the respondent
has to give points according to the 5 point likert scale.
Sampling Methodology
Sample unit & Frame: The set of all the transporters who are present in Patna .
Sample size: The sample size taken here is of 42 for third objective and for rest of the
two objectives 37 interviews were conducted.
Sampling method: The sampling method adopted is convenience sampling.
Page 8
DECLARATION
This is to certify that, this report entitled “ANALYSIS OF EXISTING
LOGISTICS(TRANSPORTATION) OF FMCG COMAPANIES IN BIHAR
REGION” submitted by Danish Anwar to Chandragupt Institute of
Management Patna, as a requirement for the award of the Post
Graduate Diploma in Management, is a bonafide record of research
work carried out by him/her under our supervision. The contents of
this report, in full or in parts, have not been submitted to any other
Institute or University for the award of any degree or diploma.
(Mr. Rebti Raman) ------------------------------
(Sign)
(Mr.Anoop Raj) -------------------------------
(Sign)
Date: ___________________
Page 9
ACKNOWLEDGEMENT
The satisfaction that comes through the successful completion of any task would be
incomplete without mentioning the names of people who made it possible, because
success is the epitome of hard work & guidance. So with gratitude, I acknowledge all
those guidance and encouragement that served as a beacon of light and crowned my
efforts with success so far.
I avail this opportunity to express with utmost sincerity my thanks to all the people of
Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF Ltd.) for giving me this
opportunity to undergo my summer internship in this prestigious organization.
I am deeply grateful to Mr. Manoj Prabhakar & Mr. Rebti Raman, Assistant Sales
Manager, for their support, suggestion and enthusiasm which helped me in the successful
completion of this report and to have thorough knowledge of the subject and its
application.
I would like to thanks Prof. Anoop Raj, faculty mentor, for providing me the key inputs
for the project and extending his continuous support during the tenure.
I also express my gratitude to Dr. V. Mukund Das, Director, Chandragupt Institute of
Management, Patna for giving me an opportunity to work with Amul.
Danish Anwar
Page 10
Table of Contents
Chapter 1: Industry Profile...............................................................................................13
1.1 FMCG industry in India.................................................................................13
1.2 Dairy industry in India...................................................................................15
Chapter 2 : Introduction....................................................................................................17
2.1 Introduction to the organization.....................................................................17
2.1.1 Member Unions..............................................................................18
2.1.2 Distribution Network......................................................................19
2.2 History of Amul............................................................................................20
2.2.1 Amul Secret of Success..................................................................24
Chapter 3 : Logistic Medium of FMCG companies........................................................28
3.1 GlaxoSmithKline..........................................................................................28
3.2 Reckitt Benckiser..........................................................................................29
3.3 Parle Agro.....................................................................................................31
3.4 Colgate Palmolive.........................................................................................33
3.5 Hindustan Unilever Ltd.................................................................................34
3.6 Nestle India...................................................................................................36
3.7 GCMMF........................................................................................................37
Chapter 4 : Problem in Transportation.............................................................................39
4.1 Problem faced by C&F agent........................................................................39
4.2 Problems for transporters involved in inward logistics................................41
4.3 Problem faced by transporter (Intra distribution).........................................43
Chapter 5 : Factors Affecting Transportation................................................................45
Page 11
5.1 Reliability Analysis.......................................................................................45
5.1.1 Result...............................................................................................46
5.1.2 Interpretation....................................................................................47
5.2 Factor Analysis.............................................................................................47
5.2.1 Results & Interpretation..................................................................47
Chapter 6 : Load Divison Model....................................................................................52
6.1 Data Analysis................................................................................................52
6.2 Calculation for benefits.................................................................................59
Chapter 7 : Summary & Recommendation......................................................................61
7.1 Conclusion....................................................................................................61
7.2 Recommendations.........................................................................................62
7.3 Limitations....................................................................................................62
References........................................................................................................................63
Appendix 1 Questionnaire & Interview guide..................................................................64
Appendix 2 Collected rate list.........................................................................................74
Appendix 3 Sales data.......................................................................................................81
Page 12
List of Tables , Figures
Table 2.1 GCMMF: An overview......................................................................................18
Table 2.2 Turnover details.................................................................................................25
Table 5.1 Alpha Table........................................................................................................46
Table 5.2 Case Processing Summary.................................................................................46
Table 5.3 Reliability Statistics...........................................................................................46
Table 5.4 KMO and Bartlett's test.....................................................................................48
Table 5.5 Total Variance Explained .................................................................................49
Table 5.6 Rotated Component matrix................................................................................50
Table 6.1 North Bihar........................................................................................................53
Table 6.2 South Bihar........................................................................................................54
Table 6.3 Other costs.........................................................................................................58
Figure 2.1 Foundation........................................................................................................22
Figure 5.1 Scree Plot..........................................................................................................55
Figure 6.1 Cost calculation and route scheduling..............................................................60
Page 13
Chapter1:INDUSTRY PROFILE
1.1 FMCG Industry In India:-
The fast moving consumer goods (FMCG) segment is the fourth largest sector in the
Indian economy. The market size of FMCG in India is estimated to grow from US$ 30
billion in 2011 to US$ 74 billion in 2018.
Food products are the leading segment, accounting for 43 per cent of the overall market.
Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market
share. Growing awareness, easier access, and changing lifestyles have been the key
growth drivers for the sector.
What are FMCG goods?
FMCG goods are popularly known as consumer packaged goods. Items in this category
include all consumables (other than groceries/pulses) people buy at regular intervals. The
most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving
products, shoe polish, packaged foodstuff, and household accessories and extends to
certain electronic goods. These items are meant for daily of frequent consumption and
have a high return.
Future lies in Rural India
Rural areas expected to be the major driver for FMCG, as growth continues to be high in
these regions. Rural areas saw a 16 per cent, as against 12 per cent rise in urban areas.
Most companies rushed to capitalize on this, as they quickly went about increasing direct
Page 14
distribution and providing better infrastructure. Companies are also working towards
creating specific products specially targeted for the rural market.
The Government of India has also been supporting the rural population with higher
minimum support prices (MSPs), loan waivers, and disbursements through the National
Rural Employment Guarantee Act (NREGA) programme. These measures have helped in
reducing poverty in rural India and given a boost to rural purchasing power. Hence rural
demand is set to rise with rising incomes and greater awareness of brands.
Urban trends
With rise in disposable incomes, mid- and high-income consumers in urban areas have
shifted their purchasing trend from essential to premium products. In response, firms
have started enhancing their premium products portfolio. Indian and multinational FMCG
players are leveraging India as a strategic sourcing hub for cost-competitive product
development and manufacturing to cater to international markets.
Top Companies
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by
MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands,
and 27 of these are owned by Hindustan UniLever.
The top ten India FMCG brands are:
1.Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
Page 15
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
1.2 Dairy Industry in India : Dairy industry is of crucial importance to India. The
country is the world's largest milk producer, accounting for more than 13% of world's
total milk production. It is the world's largest consumer of dairy products, consuming
almost 100% of its own mi lk production.( Karmakar & Banerjee, 2006). Dairy products are
a major source of cheap and nutritious food to millions of people in India and the only
acceptable source of animal protein for large vegetarian segment of Indian population,
particularly among the landless, small and marginal farmers and women.
India has the highest livestock population in the world with 50% of the buffaloes and
20% of the world’s cattle population, most of which are milch cows and milch buffaloes.
India’s dairy industry is considered as one of the most successful development programs
in the post-Independence period. In the year 2006-07 the total milk production in the
country was over 94.6 million tones with a per capita availability of 229 grams per day.
Page 16
The industry had been recording an annual growth of 4% during the period 1993-2005,
which is almost 3 times the average growth rate of the dairy industry in the world.
The milk processing industry is small compared to the huge amount of milk produced
every year. Only 10% of all the milk is delivered to some 400 dairy plants. A specific
Indian phenomenon is the unorganized sector of milkmen, vendors who collect the milk
from local producers and sell the milk in both, urban and non-urban areas, which handles
around 65-70% of the national milk production. In the organized dairy industry, the
cooperative milk processors have a 60% market share. The cooperative dairies process
90% of the collected milk as liquid milk whereas the private dairies process and sell only
20% of the milk collected as liquid milk and 80% for other dairy products with a focus on
value-added products(Karmakar & Banerjee, 2006). Exports of dairy products have been
growing at the rate of 25% per annum in the terms of quantity terms and 28% in terms of
value since 2001. The major destinations for Indian dairy products are Bangladesh
(23.1%), UAE (15.4%), US (15.6%) and Philippines (8.9%). In terms of products, SMP
is the most important product accounting for about 63% of total export volume, followed
by ghee and butter (11.7%) and WMP (Karmakar & Banerjee, 2006). Over the years,
several brands have been created by cooperatives like Amul (GCMMF), Vijaya (AP),
Verka (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala) and Gokul
(Kolhapur).
Page 17
Chapter 2: Introduction
2.1 INTRODUCTION OF THE ORGANISATION
Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food
products marketing organization. It is a state level apex body of Milk cooperatives in
Gujarat which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money.
Gujarat Milk Marketing Federation Ltd. (GCMMF) is the largest food product
marketing organization in India. Its daily milk procurement is approx. 13 million liter per
day from its 16,117 milk cooperative societies, 17 member unions covering 24 districts
and 3.18 million milk producer members. It is the apex dairy cooperative organization of
Gujarat. It is popularly known as AMUL. The main aim of the organization is to provide
remunerative returns to the farmers and provide quality products to its consumers which
are good value for the money they spend. GCMMF is largest dairy products exporter in
India. GCMMF is the exclusive marketing organization of AMUL and SAGAR branded
products. The AMUL brand is not only the product but it was a movement for economic
freedom of the farmers. It is the Brand which give farmers the courage to Dream, to Hope
and to Live. CRISIL, India's leading Ratings, Research, Risk and Policy Advisory
company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank
facilities of GCMMF.
Page 18
Table 2.1 GCMMF: An Overview
Year of Establishment 1973
Members
17 District Cooperative Milk
Producers' Unions
No. of Producer Members 3.37 Million
No. of Village Societies 18,536
Total Milk handling capacity per
day
24 Million litres per day
Milk Collection (Total - 2014-15) 5.42 billion litres
Milk collection (Daily Average
2014-15)
14.85 million litres
Cattlefeed manufacturing
Capacity
6340 Mts. per day
Sales Turnover -(2014-15) Rs. 20733 Crores (US $ 3.4 Billion)
2.1.1 MemberUnions
1. Kaira District Cooperative Milk Producers' Union Ltd., Anand
2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana
3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar
4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur
5. Surat District Cooperative Milk Producers' Union Ltd., Surat
6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara
7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra
8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad
9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
Page 19
10. Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad
11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot
12. Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar
13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar
14. Amreli District Cooperative Milk Producers Union Ltd., Amreli
15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar
2.1.2 Distribution Network:
Most producers work with marketing intermediaries to bring their products to market.
The marketing intermediaries make up a marketing channel also called distribution
channel. Distribution channels are sets of interdependent organizations involved in the
process of making a product or service available for use or consumption.
The Head Office of GCMMF is located at Anand. The entire market is divided in 5
zones. The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and
Chennai. Moreover there are 49 Depots located across the country and GCMMF caters to
37 Export markets.
A zero level of channel also called a direct marketing channel consists of a manufacturer
selling directly to the final customers. A one level channel; contains one selling
intermediary such as retailer to the final customers. A two level channel two
intermediaries are typically wholesaler and retailer. A three level channel are typically
wholesaler, retailer and jobber in between.
Page 20
GCMMF has an excellent distribution. It is its distribution channel, which has made it so
popular. GCMMF‟s products like Milk and Milk products are perishable. It becomes that
much important for them to have a good distribution.
Distribution Chart
We can see from above figure that GCMMF distribution channel is simple and clear. The
products change hands for three times before it reaches to the final consumer. First of all
the products are stored at the Agents end who are mere facilitators in the network. Then
the products are sold to wholesale dealers who then sell to retailers and then the product
finally reaches the consumers.
2.2 History Of Amul
In the year 1946 the first Milk union was established. This union was started with 250
liters of Milk per day. In the year 1946 the union was known as KAIRA DISTRICT CO-
• FACTORY
• C&F Agent
• WHOLESELLER
• RETAILER
• CONSUMER
Page 21
OPERATIVE MILK PRODUCERS‟ UNION. This union selected the brand name
AMUL in 1955.
The brand name Amul means “AMULYA”. This word derived form the Sanskrit word
“AMULYA” which means “PRICELESS”. A quality control expert in Anand had
suggested the brand name “AMUL”. Amul products have been in use in millions of
homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul
Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Prolife
Lassee, Amul Pro and Amulya have made Amul a leading food brand in India. (The total
sale is Rs. 2 billion in 2012). Today Amul is a symbol of many things like of the high-
quality products sold at reasonable prices, of the genesis of a vast co-operative network,
of the triumph of indigenous technology, of the marketing savvy of a farmers'
organization. And have a proven model for dairy development (Generally known as
“ANAND PATTERN”).
In the early 40‟s, the main sources of earning for the farmers of Kaira district were
farming and selling of Milk. That time there was high demand for milk in Bombay. The
main supplier of the milk was Polson dairy limited, which was a privately owned
company and held monopoly over the supply of milk at Bombay from the Kaira district.
This system leads to exploitation of poor and illiterates‟ farmers by the private traders.
The traders used to beside the prices of milk and the farmers were forced to accept it
without uttering a single word. However, when the exploitation became intolerable, the
farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was
a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the
Milk on their own by establishing a co- operative union, Instead of supplying Milk to
Page 22
private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-
operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th
January 1946. He advised the farmers to form a society for collection of the Milk
Figure 2.1 Foundation
These village societies would collect the milk themselves and would decide the prices at
which they can sell the Milk. The district union was also form to collect the Milk from
such village co-operative societies and to sell them. It was also resolved that the
Government should be asked to buy Milk from the union. However, the govt. did not
seem to help farmers by any means. It gave the negative response by turning down the
demand for the milk. To respond to this action of govt., the farmers of Kaira district went
on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a
result the Bombay milk scheme was severely affected. The milk commissioner of
Page 23
Bombay then visited Anand to assess the situation. Having seemed the condition, he
decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to collect and
sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese
Kurien showed main interest in establishing union who was supported by Shri
Tribhuvandas Patel who lead the farmers in forming the Cooperative unions at the village
level. The Kaira district milk producers union was thus established in ANAND and was
registered formally on 14th December 1946. Since farmers sold all the milk in Anand
through a co-operative union, it was commonly resolved to sell the milk under the brand
name AMUL.
At the initial stage only 250 liters of milk was collected every day. But with the growing
awareness of the benefits of the cooperativeness, the collection of milk increased. Today
Amul collect 14.85 million liters of milk every day. Since milk was a perishable
commodity it becomes difficult to preserve milk for a longer period. Besides when the
milk was to be collected from the far places, there was a fear of spoiling of milk. To
overcome this problem the union thought out to develop the chilling unit at various
junctions, which would collect the milk and could chill it, so as to preserve it for a longer
period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is
collected from almost 1500 societies.
With the financial help from UNICEF, assistance from the govt. of New Zealand under
the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter
was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November
Page 24
15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at
Amul dairy on November 20, 1955.
2.2.1 Amul Secret Of Success:
The system succeeded mainly because it provides an assured market at remunerative
prices for producers' milk besides acting as a channel to market the production
enhancement package. What's more, it does not disturb the agro-system of the farmers. It
also enables the consumer an access to high quality milk and milk products. Contrary to
the traditional system, when the profit of the business was cornered by the middlemen,
the system ensured that the profit goes to the participants for their socio-economic
upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern and
model for emulation elsewhere.
Amul has been able to:
 Produce an appropriate blend of the policy makers farmers board of management
and the professionals: each group appreciating its rotes and limitations.
 Bring at the command of the rural Milk producers the best of the technology and
harness its fruit for betterment.
 Provide a support system to the Milk producers without disturbing their agro-
economic systems.
 Plough back the profits, by prudent use of men, material and machines, in the
rural sector for the common good and betterment of the member producers.
Page 25
Even though, growing with time and on scale, it has remained with the smallest producer
members. In that sense, Amul is an example par excellence, of an intervention for rural
change.
The Union looks after policy formulation, processing and marketing of Milk, provision of
technical inputs to enhance Milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like - all through the village societies. Basically the
union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK
UNION LIMITED), a name which suggest THE TASTE OF INDIA.
Amul (Anand Milk union ltd.) is based on four hands, which are coordinated with each
other. The actual meaning of this symbol is co-ordination of four hands of different
people by whom this union is at the top position in Asia.
First hand is of farmers, without whom the organization would not have existed.
Second hand is of processors, who process the raw material (Milk) into finished goods.
Third hand is of marketer, without whom the product would have not reached the
customers.
Fourth hand is of customers, without whom the products would have not carried on.
Table 2.2 Turnover details
Sales Turnover Rs (million) US$ (in millions)
1994-95 11140 355
Page 26
Sales Turnover Rs (million) US$ (in millions)
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
Page 27
Sales Turnover Rs (million) US$ (in millions)
2009-10 80053 1700
2010-11 97742 2172
2011-12 116680 2500
2012-13 137350 2540
2013-14 181434 3024
2014-15 207330 3410
Page 28
Chapter 3 Logistic Medium of FMCG companies
3.1 GlaxoSmithKline
GlaxoSmithKline is one of the world’s leading research based pharmaceuticals and
healthcare companies is committed to improving the quality of human life by enabling
people to do more, feel better and live longer. According to the officials of Patna office
GSK is having highest turnover in FMCG goods in Bihar in the financial year 2014-15.
The production location of company is Nabha, Sonipath and other parts of Himachal
Pradesh. It takes around 7 to 8 days to reach products to Patna. The transportation takes
place through 10 wheeler, 12 wheeler and 14 wheeler. The daily inbound delivery to
Patna warehouse is about 7 to 8 truck having around 750 to 800 cartoons in each truck.
The company ware house is located in Patna at Anishabad Shalimar cold storage which
has storage capacity of 1080MT and the total space is 50000sq ft. The average number of
products in the warehouse is 76sku and the average product quantity is 12kg per cartoons.
The stock turnover rate is 12 days. For GlaxoSmithKline cold storage is required for
some of its goods. The average value of product is 25lakhs in one truck which seems a
good value and becomes risky for company in place like Bihar especially from Mohania
to Patna. The company is having minimum ordering quantity which is 200 cartoons and
that is the capacity of model-407 and average size of order is 400 cartoons (4.8tone)
which is the capacity of Model-709 . It means company is using a mix of 407,709,1109 &
six wheeler. There is seasonal influence ,especially in July, August, September the
Page 29
overall demand is highest for example the highest demand of ENO is from march to
September and for Horlicks and Oxtrocalcium the demand in summer is more . For Iodex
the demand is high when rabi and kharif crop are harvested. during these times the
vehicles movement increases. The distributor of the company is located in every districts
of Bihar which means the company needs vehicles for whole Bihar. The company is
using third party logistic for outbound delivery. The daily number of shipment from
warehouse is 8 to 9 trucks and the vehicles used for transportation are 407, 709,1109 &
6 wheeler. The shipment is done by using one vehicle for both one distributor and
multiple distributors. It takes around 1 to 2 days to reach in any part of Bihar. The cost of
transportation depends upon types of vehicle used for transportation and the distance
from the warehouse. Transporter charges only one side freight.
In last two year the company has experienced 5 % hikes in costs for transportation on
contract basis. The blockage of Gandhi setu bridge for 10 wheeler from last two years
doesn’t have significant impact on cost because there transportation is fully on contract
basis it doesn’t consider any issue of roads or bridges in between contract time period.
Transporters are attached just due to high volume. Revision of price in between contract
period is done only when there will be 10% change in diesel price.
3.2 Reckitt Benckiser
The Reckitt Benckiser brand include French’s Mustard, the antiseptic brand Dettol, the
sore throat medicine Strepsils, the hair removal brand Veet, the air freshener Air Wick,
Calgon, Clearasil, Cillit bang, Durex, Lysol, Nycil and Vanish. It operates in around 60
countries and its products are sold in almost 200 countries.
Page 30
The production location of company are Sitarganj, Mysore, Ambala, Dankuni and
Hyderabd. It takes around 3 days to reach products to Patna from production locations.
The transportation takes place through 10 wheeler and 12 wheeler and most of them are
of third party. The daily inbound delivery to Patna warehouse is about 4 to 6 truck having
around 1000 to 1200 cartoons in one truck. As the size of their cartoon is lesser than that
of GSK one. Company ware house is located in Patna at Anishabad Shalimar cold
storage which has storage capacity of 60000 cartoons and the total space is 45000 sq ft.
The average number of products in the warehouse is 400sku and the average product
quantity is 50000 cartoons . The stock turnover rate is 7 days. As the company is not
having any perishable product for this market so there is no need of cold storage.
The average number of order per day is 22 which is quite high. The company is having
minimum ordering quantity which is 450 case. There is seasonal influence especially in
summer when demand is more and in rainy season the overall demand is less. The
distributor of the company is located in every districts of Bihar. The company is using 3
parties logistic for outbound delivery. They have a contract with a lot number of brokers
they get vehicles in pre specified rate from them. The daily number of shipment from
warehouse is 22 trucks and the vehicles used for transportation is pick up, 407, 6 wheeler
and 1109 . The shipment is done by using one vehicle for both one distributor and
multiple distributor .This is mainly done to use the capacity of the vehicle It takes around
1 to 2 days to reach in any part of Bihar. The cost of transportation depends upon types of
vehicle used for transportation and the distance from the warehouse. Transporter charges
only one side freight. The average size or quantity of shipment is 600 cartoons.
Page 31
In last two year the company has experienced 10 % hikes in costs for transportation
because of blockage of Gandhi setu bridge for 10 wheeler from last two years. The other
problem face due to blockage is traffic jam which is always present on bridge. Because of
this blockage there is extra burden of delivery. Recently government of Bihar announce
that no entry of commercial vehicle during certain daytime so it lead to failure of delivery
time. The company is giving different rates for south Bihar and north Bihar. For
transportation in north Bihar the company has to pay 4- 5% more than South Bihar. The
company use 6 wheeler and 709 for transportation in all part of Bihar. No 10 wheeler
used by company for transportation in Bihar.
3.3 Parle Agro
Parle Products is an Indian private limited company. It owns the famous biscuit brand
Parle-G. As on 2012, it has a 35% dominant share of the Indian biscuits market. Parle
products have 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, name Parle name symbolizes quality, nutrition and great taste. With a
reach spanning even to the remotest village of India, the company has definitely come a
very long way since its inception.
The production locations of company are located in maximum state. It takes around 3
days to reach Patna from other states. The transportation takes place through 10 wheeler
and 12 wheeler. The daily inbound delivery to Patna warehouse in three trucks is around
1000 to 1200 cartoons in one truck. The company ware house located in Patna at karmali
chowk, Patna which has storage capacity of 100000 cartoons and the total space is 20000
Page 32
sq ft. The average number of products in the warehouse is 100sku and stock turnover rate
is 30 days. For Parle no cold storage is required.
The average number of order per day is 10. There is a minimum ordering quantity of
400 cases so that a standard size of load can be generated and proper vehicle can be used.
There is no seasonal influence as its products are of everyday use. Minimum one
distributor is there in every district which means they need vehicle for whole Bihar. The
company is having their own vehicles as well as 3 parties logistic for outbound delivery.
The daily number of shipment from warehouse is 10 trucks and the vehicles used for
transportation is 709 and 6 wheeler. The shipment is done by using one vehicle for both
one distributor an multiple distributor. It takes around 1 day to reach in any part of Bihar.
The cost of transportation depends upon types of vehicle used for transportation and the
distance from the warehouse.
In last two year the company have experienced 7-8% hike in costs for transportation
because of blockage of Gandhi Setu Bridge for 10 wheeler from last two years. As in
smaller vehicles it is difficult to arrange cartoons properly so less number of cartoons is
being accommodated which increases per cartoon cost. The other problem face due to
blockage is traffic jam which is always present on bridge. Another reason is due to
increase in fare of 6 wheeler due to high demand of 6 wheeler. Recently government of
Bihar announced that no entry of commercial vehicle during certain daytime on
Mahatma Gandhi Setu so it lead to failure of delivery time. Due to this issue in 2012 they
have divided Bihar into three zones and opened two more warehouses in Hajipur and
purnia and distributed the load to these entire warehouses according to their reach. So
warehouse in Patna has not to worry about north Bihar.
Page 33
3.4 Colgate Palmolive
The Coalgate Palmolive Company is an American multinational consumer products
focused on the production, distribution and provision of household, health care and
personal products, such as soaps, detergent, and oral hygiene products (including
toothpaste and toothbrush).
The production locations of company are Goa, Baddi, Sanand etc. Goods coming from
the factory is having a average 7 days of transit time so the warehouse is always having a
stock of minimum 10 days. As their product is not bulky rather it is having a high volume
so they judge the capacity on the basis of no of cartoons. The transportation takes place
through 10 wheeler and daily inbound delivery to Patna warehouse in three truck is
around 3200 to 3600 cartoons. The company ware house located in Patna at Anishabad
Shalimar cold storage which has storage capacity of 30000 cartoons and the total space is
13000 sq ft. The average number of products in the warehouse is 200sku and stock
turnover rate is 15 days. For Coalgate Palmolive no cold storage is required.
The average number of order per day is 15. The company has no specific size in average
shipment size or quality but there is minimum ordering quantity which is around 1 lakh in
terms of value. There is no seasonal influence except cold creams. The distributor of the
company is located in every districts of Bihar. The company is using 3 parties logistic for
outbound delivery. The daily number of shipment from warehouse is 15 trucks and the
vehicles used for transportation is pick up, 407, 6 wheeler and 10 wheeler. In one vehicle
there can be goods for one distributor or two distributor It takes around 1 to 2 days to
reach in any part of Bihar but in case of Katihar and Purnia it takes 3 days sometimes.
Page 34
The cost of transportation depends upon types of vehicle used for transportation and the
distance from the warehouse.
In last two year the company have experienced 7-8% hike in costs for transportation
because of blockage of Gandhi setu bridge for 10 wheeler from last two years. The other
problem face due to blockage is traffic jam which is always present on bridge. Recently
government of Bihar announce that no entry of commercial vehicle during certain
daytime so it lead to failure of delivery time. The company is giving different rates for
south Bihar and north Bihar. For transportation in north Bihar the company has to pay 5%
more than South Bihar. To minimize the cost in north Bihar Company is doing slightly
different from other company in transportation. They load the product on 407, pick up,6
wheeler from the warehouse to cross the bridge and after crossing they unload the
product to 10 wheeler. They find that this method is best to minimize cost in north Bihar.
3.5 Hindustan Unilever Ltd
Hindustan Unilever Ltd is India’s largest Fast Moving Consumer Goods company with a
heritage of over 80 years in India and touches the lives of two out of three Indians. With
over 35 brands spanning 20 distict categories such as soaps, detergents, shampoos, skin
care, toothpastes, deodorants, cosmetic, tea, coffee, packaged foods, ice creams and water
purifiers the company is a part of everyday life of millions of consumers across India.
The production location of company is Haridwar, Haldia and Solan. It takes around 4 to 5
days to reach goods to Patna. The transportation takes place through 10 wheeler and 12
wheeler. The daily inbound delivery to Patna warehouse is about 10 trucks .The company
ware house is located in Patna at Didarganj which has storage capacity of 1000MT and
Page 35
the total space is 52000 sq ft. The average number of products in the warehouse is
200+sku and the average product is 1000 tone. The stock turnover rate is 7 days.
The average number of order per day is 10 to 12. The company has no minimum
ordering quantity whatever order comes they have to deliver. There is no seasonal
influence on overall load because at a time if there is some influence on one product then
in another month influence shifts to other products due to wide variety of products the
overall load or dispatched load remains almost same. The distributor of the company is
located in every districts of Bihar. The company is using third party logistic for outbound
delivery. The daily number of shipment from warehouse is 10 to 12 trucks and the
vehicles used for transportation is pick up, 407 which is used for transportation in 20km
of radius only. For north Bihar either 709 or 6 wheeler is being used and for south Bihar
they normally preferred to use 10 wheeler, 6 wheeler and. The shipment is done by using
one vehicle for one distributor. It takes around 30 hours to reach in any part of Bihar. The
cost of transportation depends upon types of vehicle used for transportation and the
distance from the warehouse. Transporter charges only one side freight. There is no
standard size of order for delivery.
In last two year the company has experienced 7 to 8 % hikes in costs for transportation
because of blockage of Gandhi setu bridge for 10 wheeler from last two years. The other
problem face due to blockage is traffic jam which is always present on bridge. Because of
this blockage demand for six wheeler have increased so there monopoly has started .
Recently government of Bihar announce that no entry of commercial vehicle during
certain daytime so it lead to failure of delivery time. According to them there is
significance difference between transportation cost in north Bihar and south Bihar. In
Page 36
south Bihar it cost less because in south Bihar the load is supposed more than 10 tone
they can easily used 10 wheeler which cost just 30% more than what cost six wheeler and
the quantity that can be transported is almost double. So overall per tonnage cost reduces.
3.6 Nestle India
The Nestle India is a vibrant company that’s provides consumers in India with products
of global standards and is committed to long term sustainable growth and shareholder
satisfaction. Nestle India manufactures products of truly international quality under
internationally famous brands name such as Maggi, Milkybar, Kitkat, Bar-one, Milkmaid
and Nestea and rest in recent years the company has also introduced products of daily
consumption and use such as Nestle milk, Nestle slim milk, Nestle dahi and Nestle jeera
raita.
The production location of company is Rudrapur and Kolkatta. It takes around 2 to 3 days
to reach Patna from these production locations . The transportation takes place through 10
wheeler and 12 wheeler. The daily inbound delivery to Patna warehouse is more than ten
trucks and the number of cartoons received daily is around 8000. The company ware
house is located in Patna at Didarganj which has storage capacity of 80000 cartoons and
the total space is 44000 sq ft. The average number of products in the warehouse is more
than 100sku. The stock turnover rate is 3 days. For Nestle India cold storage is required.
The average number of order per day is more than 10. The company is not having any
minimum ordering quantity for delivery. There is no seasonal influence on any product of
Nestle India. The distributor of the company is located in every districts of Bihar. The
company is using 3 parties logistic for outbound delivery. The daily number of shipment
Page 37
from warehouse is more than 10 trucks and the vehicles used for transportation is pick
up, 407, 6 wheeler and 10 wheeler. The shipment is done by using one vehicle for one
distributor. It takes around 36 hours to reach in any part of Bihar. The cost of
transportation depends upon types of vehicle used for transportation and the distance
from the warehouse. Transporter charges only one side freight. There is no standard size
of order for delivery.
In last two year the company has experienced 10 % hikes in costs for transportation
because of blockage of Gandhi setu bridge for 10 wheeler from last two years. The other
problem faced due to blockage is traffic jam which is always present on bridge. Because
of this blockage demand for six wheeler have increased so there monopoly has started.
Recently government of Bihar announce that no entry of commercial vehicle during
certain daytime so it lead to failure of delivery time. According to them there is
significant difference between transportation cost in north Bihar and south Bihar. In south
Bihar it cost less because in south Bihar the load is supposed to be more than 10 tone so,
they can easily used 10 wheeler which cost just 30% more than what cost six wheeler and
the quantity that can be transported is almost double. So overall per tonnage cost reduces.
Another factor is that there is no such demand of six wheeler for transportation of other
goods.
3.7 GCMMF
The production location of company is in Gujarat and West Bengal. It takes around 3 to 5
days to reach Patna from factory . The transportation takes place through 10 wheeler, 12
wheeler and railway racks. The daily inbound delivery to Patna warehouse in 8 to 10
Page 38
trucks from Fatuha rack point. The number of cartoons received depends on the purchase
request. The company ware house located in Patna at Anishabad Shalimar cold storage
which has total space of 16000sq ft. For Amul cold storage is required as some of the
products are perishable.
The average number of order per day is 15 to 20. The company is having minimum
ordering quantity which is 2 tones for local distributors. There is seasonal influence
especially in summer due to increase in sale of ice cream. The distributor of the company
is located in every districts of Bihar. The company is using own logistic for outbound
delivery. The daily number of shipment from warehouse is 15 to 20 trucks and the
vehicles used for transportation is pick up, 407, 608 and 709. The shipment is done by
using one vehicle for both one distributor and multiple distributors depends upon the
order. It takes around 24 hours to reach in any part of Bihar except Purnia and Sharsha.
The cost of transportation depends upon types of vehicle used for transportation and the
distance from the warehouse. Transporter charges only one side freight but now they
started charging more. The average size or quantity of shipment is 5 tones.
In last two year the company has experienced 8 to10 % hikes in costs for transportation
because of blockage of Gandhi Setu Bridge for 10 wheeler from last two years. The other
problem face due to blockage is traffic jam which is always present on bridge. Recently
government of Bihar announce that no entry of commercial vehicle during certain
daytime so it lead to failure of delivery time. The company is giving same rates for south
Bihar and north Bihar. The other problem is that six wheeler is not always available and
they also started charging more for transportation.
Page 39
Chapter-4 Problem In Transportation
4.1 Problem faced by C&F agent
 Difference of cost in North Bihar and south Bihar- Earlier the transportation
cost for north Bihar and south was same but due to blockage of bridge for 10
wheeler and above the transportation cost across north Bihar has increased in last
two year. Many company pays additional 5% for transportation in north Bihar. In
south Bihar it cost less because in south Bihar the load is supposed to be more
than 10 tone and they can easily use 10 wheeler which cost just 30% more than
what cost six wheeler and the quantity that can be transported is almost double.
So the overall per tonnage cost reduces but in case of north Bihar they have no
other option they have to transport by six or below wheeler so the transportation
cost increased in north Bihar.
 Demand of six Wheeler has increased- Because of blockage of bridge for 10
wheeler the demand of 6 wheeler has increased and as a result there is shortage of
6 wheeler. Actually now commodities, coal sand and other products which were
earlier transported by multiaxle vehicles are now transported by six wheelers.
Many company have to transport there product by other vehicles like 1109,407
etc because of shortage of six wheeler which results in increase of transportation
cost. The other problem is that six wheeler are charging more because of their
monopoly in the market which results in increase in cost around 15 to 20%. As
Page 40
there is no option ultimately the C&F have to pay more to the six wheeler which
also result in increase of transportation cost.
 Traffic Jam- It is another factor which results in increase in transportation cost.
As there is repairing work going on Mahatma Gandhi setu bridge so daily there is
long traffic jam .Because of this traffic jam the vehicles which is supposed to
reach within 24 any part of Bihar actually take more than 30 hours to reach any
part of Bihar which affect the transportation cost and lead to failure of delivery
time. Recently the news came out that six wheeler are not allowed to cross the
bridge during certain timing in daytime which further increased the problem for
C&F.
 Problem with smaller vehicles-After blockage of big vehicles the demand of
smaller vehicles has increased but the problem with the smaller vehicles is that it
is difficult to arrange cartoons properly and so less number of cartoon is being
accommodated due to less capacity of the vehicles and which result in increased
per cartoon cost. Some product have less weight but volume is more so they
require more space as a results arrangement of this type of product in smaller
vehicles is difficult the quantity is reduced and hence cost per cartoon increase.
Page 41
4.2 Problems for transporters involved in inward logistics
 No business opportunity – The business opportunity is almost nil in South Bihar
only at the time of seasonal crops the transporter get something otherwise they
have to move either to Jharkhand or some other place for getting some return
goods. There is some business opportunity in north Bihar but the problem is that
the ten wheeler are not allowed to cross Gandhi Setu bridge so ultimately they
have to go far places like Durgapur and Jamshedpur or they are forced to return
from Bihar with empty vehicles. In Bihar there is no such industry whose goods
can be transported to other state. In some of the month of season in which there is
harvest they used to get fodder and even rice and wheat as return goods. In other
state there is some industrial belt or area in which they get something for
transportation. So because of this problem many of transporters don’t want to
come Bihar.
 Condition of Bridge and roads- The trucks which enter in Bihar has to face a lot
of problem related to bridge and roads. For example after entry to Bihar from
Mohania the road is state highway and has no lane division .The condition of
roads is also not so good. A lot of traffic is always present. So, to cross 150km it
takes 10-12 hour and more than that. In the same there is a problem for high load
in Koyelbar Bridge. The height of Koyelbar bridge is less so truck cannot carry
good with more height. Because of this problem the transporter have to do loading
and unloading to cross the bridge which increases the cost.
Page 42
 Unavailability of public provided infrastructure- In Bihar there is very less
public provided infrastructure because of this parking has became a big issue in
Bihar and in many places due to no parking space the trucks has to parked beside
the road which sometimes leads to traffic jam . Sometimes authority imposes fine
on transporter for parking.
 Unwanted interference by policemen- Policeman disturbs a lot to outsider
transporter. They charge money illegally and if transporter doesn’t give money
they don’t allow them to move further. Because of the involvement of policemen
sometime it leads to traffic jam. Apart from policemen RTO also charges illegally
to make permit for the transporter.
 Long detention period- It happens when there is no space to store goods in
warehouse and as results the trucks have to wait to unload the goods in
warehouse. Sometimes it takes more than five days to unload the goods in
warehouse. Although a fixed detention amount given to transporter but it not
enough as more time is losses because of detention. In Patna none of the
warehouse has been made with proper planning due to which what happens is
loading space got stuck if a multiaxle vehicle gets into the loading area and blocks
the way for other loading area.
Page 43
4.3 Problem faced by transporter (Intra distribution)
 Condition of roads-In many parts of Bihar the roads are single lane so it difficult
to drive load vehicles and the road are not so widened. Availability of four lane
roads is less in Bihar. As the roads are not so widened traffic jam occurs in many
part of Bihar. In some of routes the bridges are too narrow and not properly built
so, chance of accidents are more. If we take example of the roads from Varanasi
to Patna the condition of is so bad that it takes additional three to four hours to
reach Patna. The mileage of vehicles is also reduced and as results the
transportation cost increased and these additional costs has to bear by the
transporter.
 No entry of vehicles- As the Bihar government has recently announced that there
is no entry for commercial vehicles during 11am to 4 pm on Gandhi setu bridge. It
created another problem because any warehouse opens at 9 or 9:30 and trucks
gets loaded in 3-4 hours. So, then it has to wait another 2-3 hours then only it can
cross the river through bridge. It leads to failure of delivery time.
 Increase in demand of six wheeler- The transporter is having 10 wheeler but
they cannot be used for north Bihar because of blockage of 10 wheeler on Gandhi
setu bridge. So, they are now used for sand procurement and get less freight. Now
for transportation in north Bihar every party now demands six wheeler. So, it is
being difficult to fulfill the needs of vehicles of a given party at stipulated time.
Page 44
 Contract- The company signs contract with the transporter for transportation
which is based on per ton or kilometer .Company are not liable to pay anything
extra for traffic jam or condition of roads and if the cost increases the transporter
has to bear the cost . For example load of Muzzafarpur and Bettiah is always high
and in place of one vehicles now transporter are using two vehicles so the cost
increases and also timing increased but company are not going to listen these
things ultimately the transporter has to bear the loss . The change in contract takes
place only when there is more than 10 percent increase or decrease in diesel
price.
 Toll charges- New tolls have been created in different route which also increased
the cost of transportation. For example earlier there is no toll between fathua and
Patna but recently there is new toll in Didarganj because of this toll the transporter
have to pay around 600 or more for transportation. Apart from toll charge the
transporter has to pay taxes to nagar nigam which has been increased in several
locations in last few years.
 Parking Problem –The government has not provided any infrastructure for
parking in most of the places due to which transporters are forced to park their
trucks beside the road which sometimes leads to traffic jam.
Page 45
Chapter- 5 Factors of Transportation
5.1 Introduction
Prime focus in this entire project is on transportation and there are certain variables that
are having significant impact on the cost and time of transportation. So, to know those
variables a trial interview has been done with transporters. Focused discussion between
the interns of GCMMF Patna Depot also gave some variables. A questionnaire of 10
items covering those 10 variables was prepared and got it filled by the transporters. A
convenience sample of 42 respondents were taken. All the variables were to be scored
from 1 to 5 on the basis of their importance. So to find the most impactful variables we
have done factor analysis on our secondary data. Reliability test was done to test the
reliability of the compiled data. Factor analysis was used to come to a conclusive result.
5.2 Reliability Analysis
This measures the overall consistency of the items that are used to define a scale. As a
result, we have given sample size, number of items and reliability coefficients. In
statistics, Cronbach's (alpha) is a coefficient of internal consistency. It is commonly used
as an estimate of the reliability of a psychometric test for a sample.
Page 46
Table 5.1 Alpha table
Cronbach's alpha Internal consistency
α ≥ 0.9 Excellent (High-Stakes testing)
0.7 ≤ α < 0.9 Good (Low-Stakes testing)
0.6 ≤ α < 0.7 Acceptable
0.5 ≤ α < 0.6 Poor
α < 0.5 Unacceptable
5.1.1 Result
Table 5.2 Case Processing Summary
N %
Cases
Valid 42 100.0
Excludeda 0 .0
Total 42 100.0
a. Listwise deletion based on all variables in the
procedure.
Table 5.3 Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items
N of Items
.646 .588 10
Page 47
5.1.2Interpretation
The value of Cronbach's alpha comes out to .646, which is greater than the acceptable
benchmark of 0.6. So the data is reliable enough to be used for further processing and
analysis.
5.2 Factor Analysis
Factor Analysis is done to identify and club those important factors which drive to the
maximum possible variance. Factor analysis is a general term denoting a class of
procedures primarily used for data reduction and summarization. It is an interdependent
technique in that an entire set of interdependent relationships are examined without
making the distinction between dependent and independent variables.
Factor analysis is used in the following circumstances:
 To identify underlying dimensions or factors that explain the correlations among a
set of variables.
 To identify a smaller set of salient variables from a larger set to be used in
subsequent multivariate analysis.
Factor Analysis was done to identify the most important factors influencing the cost and
time of transportation.
. 5.2.1 Results and Interpretations
Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy:
The Kaiser-Meyer-Olkin (KMO) measures of sampling adequacy is an index used to
examine the appropriateness of factor analysis. High values (between 0.6 and 1.0)
Page 48
indicate factor analysis is appropriate in terms of adequacy of number of samples.
Values below 0.6 imply that factor analysis may not be appropriate.
The KMO measure of this test is 0.679 which indicates the factor analysis is appropriate.
Bartlett's test of Sphericity
Bartlett's test of sphericity is a statistical test used to examine the hypothesis that the
variables are uncorrelated in the population. In other words, the population correlation
matrix is an identity matrix; each variable correlates perfectly with itself (r = 1) but has
no correlation with the other variables (r = 0).
The Significance level of 0.000(which is less than 0.05) allows to reject the null
hypothesis of no correlation between the variables.
Table 5.4 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .545
Bartlett's Testof Sphericity
Approx. Chi-Square 110.982
Df 45
Sig. .000
Eigenvalue.
The eigenvalue represents the total variance explained by each factor.Eigen value >1
means components are significant.
Page 49
Table 5.5 Total Variance Explained
Compon
ent
Initial Eigenvalues Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total % of
Variance
Cumulativ
e %
Total % of
Variance
Cumulativ
e %
Total % of
Variance
Cumulativ
e %
1 2.620 26.205 26.205 2.620 26.205 26.205 1.949 19.492 19.492
2 1.993 19.929 46.134 1.993 19.929 46.134 1.915 19.147 38.639
3 1.375 13.751 59.885 1.375 13.751 59.885 1.774 17.742 56.381
4 1.002 10.024 69.909 1.002 10.024 69.909 1.353 13.528 69.909
5 .893 8.931 78.840
6 .734 7.342 86.182
7 .531 5.311 91.493
8 .362 3.619 95.112
9 .319 3.190 98.302
10 .170 1.698 100.000
Extraction Method: Principal Component Analysis.
These four components are able to explain 69% of the total variation in cost and time of
transportation. This is a pretty good bargain , because we are able to economize on the
number of variables (from 10 we have reduced them to 3 underlying factors), while we
lost only 30 per cent of the information content.
Scree plot.
A scree plot is a plot of the Eigen values against the number of factors in order of
extraction.
Page 50
Chart 5.1 Scree plot
Table 5.6 Rotated Component matrix
Component
1 2 3 4
FUELPRICE -.455 .431 .508 -.075
DISTANCE .481 .380 -.118 .488
WEIGHT .847 .150 -.029 .291
ROUTE -.070 .468 .379 .420
VALUEOFGOODS .011 -.039 -.006 .867
TOLLCHARGE .642 .010 .069 -.217
TRAFFICJAM .230 .849 -.190 .129
CONDITIONOFROADS -.007 .076 .872 -.054
PPI .569 -.060 .670 .147
RSPR -.022 .782 .329 -.091
Page 51
Extraction Method: Principal ComponentAnalysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 17 iterations.
By taking .7 as the threshold loading factor these variables can be classified into these
four components as follows-
Component 1 consist of Weight(.847)
Component 2 consist of Traffic Jam & Road Safety & Public Restrictions
Component 3 consist of Condition Of Roads
Component 4 consist of value of goods
As the Eigen value of component 1 is highest ( 2.620) so this the most impactful factor
which consist of weight. This means that weight is the most impactful variable followed
by Traffic jam & Road safety and security restrictions . From interviews also it was
found that main delay in timing is due to Traffic jam and safety restrictions in the city
due to which trucks have to wait for whole day and that increases the delivery time and
also cost for transportation.
Page 52
Chapter- 6
6.1 Data Analysis
In this part after analyzing the current situation of transportation of goods to north Bihar
and the problems associated with it several analysis like sales analysis, route scheduling ,
warehouse location has been done for GCMMF.
Sales analysis - One year sales data except for ice-cream for Bihar has been taken from
the secondary sources. Then the total sales volume has been divided into the sales of
north Bihar and south Bihar. In this north Bihar and south Bihar has been separated on
the basis of the Holy river Ganges. As the major portion of Bhagalpur district is in south
side of river so Bhagalpur has been considered in south Bihar. It has been assumed that
the last year sales volume will be the demand for the next year. Based on that location
wise demand has been generated and a report showing north Bihar and south Bihar sales
data has been made.
Ice cream sales has not been considered in the analysis as the mode of transportation for
ice cream is totally different. It is being transported through refrigerated vans (mainly
Pickup vans). Ice Cream being a perishable good, transportation plays and important part
in the whole logistic chain of the product. Delays and not meeting the pre-requisite
conditions for the Ice cream storage can be detrimental to the health of the business. In
total 3 vehicles are being currently used of 60, 80 and 120 crates in which former is
solely responsible for transportation in City region and later two are for rural regions of
Bihar.
Page 53
After this according to the current freight rate given by GCMMF to transporters the total
freight paid per distributor wise has been calculated for north Bihar and South Bihar.
Table 6.1 North Bihar
Location Distance Sales Qty Freight
rate(MT)
Freight paid
Begusarai 130 84.63 1073 90807.99
Betiah 260 41.406 1951.75 80814.1605
Chakia 175 4.61 1221 5628.81
Chapra 150 147.749 1646.5 243268.7285
Dalsinghsarai 140 15.943 1193.25 19023.98475
Darbhanga 160 340.526 1467 499551.642
Gopalganj 180 52.23 1572.5 82131.675
Hajipur 30 158.195 476.38 75360.9341
Supaul 290 19.6 2386.5 46775.4
Siwan 150 302.415 1646.5 497926.2975
Sitamarhi 140 91.52 1304.25 119364.96
Saharsa 290 134.689 2386.5 321435.2985
Samastipur 140 67.256 1193.25 80253.222
Raxual 210 58.853 1785.25 105067.3183
Purnia 300 101.013 1924 194349.012
Narkatiaganj 260 98.262 1951.75 191782.8585
Muzaffapur 80 623.448 732.6 456738.0048
Page 54
Motihari 175 204.112 1221 249220.752
Madhbani 180 21.87 1467 32083.29
Kishanganj 375 54.147 2025.75 109688.2853
Khagaria 160 2.42 1350.5 3268.21
Katihar 305 600.735 2053.5 1233609.323
Jhanjharpur 180 44.138 1489.25 65732.5165
Madhepura 290 10.35 2386.5 24700.275
Total 3280.117 4828582.948
Table 6.2 South Bihar
Location Distance Sales Qty Freight rate(MT) Freight paid
Bhabhua 175 2.43 1174.75 2854.6425
Bhagalpur 255 320.555 1850 593026.75
Bihar sharif 120 195.853 1063.75 208338.6288
Bodh Gaya 150 104.483 1609.5 168165.3885
Buxar 170 66.14 1295 85651.3
Danapur 60.56
Dehri on sone 165 17.33 1174.5 20354.085
Danapur Cant* 2.42
Gaya 110 378.184 860.25 325332.786
Jamalpur 215 69.412 1443 100161.516
Jammui 200 36.66 1461.5 53578.59
Page 55
Jehanabad 80 42.263 741.85 31352.80655
Sherghati 150 18.39 1609.5 29598.705
Sasaram 165 84.87 1174.5 99679.815
Patna* 1422.16
Nawada 112 252.049 897.25 226150.9653
Naugachia 255 20.65 1424.5 29415.925
Munger 215 93.4 1443 134776.2
Masuarhi 80 25.104 741.85 18623.4024
Lakhisarai 160 42.83 1350.5 57841.915
Jhaja 200 51.37 1461.5 75077.255
Rajgir 100 33.12 1036 34312.32
*As these two locations comes in local so these have been left out.
While interviewing transporters of intra distribution a rate list has been prepared by
asking rates for locations for different types of vehicles. These rates have been collected
from two origin locations i.e. Transport Nagar Patna, Hazipur Industrial Area.
 After analyzing all the problems for the transportation in north Bihar from all the
C & F agents and transporters and also the political and developmental scenario it
has been suggested that the company GCMMF should have a different warehouse
for North Bihar which will be located in north Bihar.
 After concluding with a concept of new warehouse next task was to find the
location of the new warehouse and to check the benefit and cost associated with
it. So for this task after a lot of analysis it has been concluded that Hajipur will be
Page 56
the best location for new warehouse. For every decision there must be a reason in
the same for choosing Hajipur as the warehouse location there are several reasons
and those reasons are-
o It is located on other side of Gandhi Setu Bridge. So from hajipur we can
send goods in 10 wheeler in any part of north Bihar as the it is connected
with most of the places with national highway.
o Most of Amul products comes through railway racks and there is a
railway station Sarai located near hajipur which can be used to unloads the
goods from railway racks.
o The 10 wheeler trucks can directly come to Hajipur from Gorakhpur via
Gopalganj . So there is no need to cross Gandhi setu bridge
o Business opportunity is more for 10 wheeler in north Bihar.
o No need to open new office in Hajipur because it is within 25km so it can
be supervised and monitored from Patna.
o Transporter has to not worry about traffic jam on Gandhi Setu Bridge.
o The rent charges of ware house in Patna and Hajipur is same. So company
don’t have to pay more in Hajipur.
In the next phase after analyzing the location the benefit and cost has been calculated.
After interviewing some of the warehouse owners and also staffs it has been found that
the rent for warehouse in Hajipur is as follows-
 Dry- Rs 10-12/Sq ft
 Frozen- 17 -18/ sq ft
Page 57
As the rent for warehouse in Patna is also in the same range so this rate can be accepted.
In ward delivery of Goods in GCMMF is done through railway rack from last 2 years,
this is actually due to increase in freight rate. The reason for this has been explained in
the earlier parts of the project. In Patna warehouse goods comes from fatuha rack point.
transportation for this has been outsourced to a company and fatuha is about 28 km from
Anishabad warehouse. In the same way that company can be used in hajipur as the
nearby rack point is sarai which is 34 km from Hajipur. so for this company will not have
to pay extra.
Another major factor is the railway freight charge but from the secondary data sources
taken from official railway website it has been found that the dairy products came in to
rate class category-50. for rate class category 50 when freight rate according to distance
has been analyzed following things has been found -
 Distance of Sarai from Anand- 1623km(shortest Path)
 Distance of Fatuha from Anand- 1592km(shortest path)
 Freight charge for rate class 50 from 1501km to 1625 km- Rs 2189/MT
 So it has been found that the there will no difference in freight charges
Page 58
Table 6.3 Other Costs
WAREHOUSE
COST
AREA RATE(per
sq ft)
CHARGE/
MONTH
ANNUAL
COST
7000 10.5 73500 882000
1000 17 17000 204000
OVERHEADS
SALARY NO OF
EMPLOY
MONTHLY
COST
ANNUAL
COST
10000 2 20000 240000
ELECTRICITY
BILL
4000 48000
WAGES NO OF WORKERS
5000 4 20000 240000
MISC 50000
Furnitures
Value Life per year
cost
100000 5 20000 20000
Page 59
 Total cost =1,684,000
6.2 Calculation for benefits
In earlier part as the cost associated with the new warehouse has been calculated so in
this section the benefits associated with it has been calculated. For calculation of benefits
first of all route scheduling has been done for north Bihar.
Route Scheduling-
Objective:- The objective of route scheduling is to minimize the overall cost of
transportation.
Route scheduling has been done keeping in view of following factors-
 Sales volume
 Road connectivity
 Timing of delivery
 Capacity of vehicle
On the basis of these factors route scheduling has been done and with the help of
collected freight rate list the cost associated with this network has been calculated.
 Total cost in new network for north Bihar = Rs 2,950,380
 Total cost in existing network for north Bihar = Rs 4744323
 Difference = Rs 1,793,943(38%)
In new routing total of Rs 1,793,943 is being saved from transportation but there are
some other costs associated with it which amounts to Rs1,684,000. So net savings is
Page 60
Rs109943 which is around 2 percent of the existing total cost. As the profit is coming to
be positive so the decision for new warehouse is financially viable.
Figure 6.1 Cost calculation & Route scheduling
Page 61
Chapter 7
7.1 Conclusion
At the present situation it was found that all the FMCG companies are facing problem of
transportation. on an average they have experienced a hike of 10% in freight charges in
last 2 years. As the load is not so high in all locations so they generally use 6 and below
wheelers vehicles for intra distribution. most of the companies are having single
warehouse located in Patna for distribution in the market of Bihar. Most of the C& F
agents are using third party logistics and they mostly depend on contractors or
commission agents for vehicles. Due to blockage even if there is a good amount of load
in some places of north Bihar they cannot use 10 wheelers.
There are various problems from thee view C & f agents, transporters of intra distribution
and transporters in involved in inward logistics.
Traffic jam and Road safety and security restrictions are one of the important factors that
is impacts cost and time of transportation so, there is a need to plan the route of
distribution keeping in mind of these two factors so that cost and time can be saved.
With the help of new warehouse locations and new route scheduling GCMMF is able to
save 2% of its existing cost of transportation in North Bihar which is a good bargain as
the company always tries to follow a low cost model. From this even the problem of late
delivery will be solved to a great extent.
Page 62
7.2 Recommendations
 FMCG companies in Bihar can have demand division into north and south bihar
and have warehouse for both to avoid blockage and traffic jam problems.
 Company GCMMF can open their warehouse as it is financially viable and it will
remove the problem of late delivery to a large extent.
 A new route scheduling for north Bihar which has been prescribed in the project
can be used.
 FMCG companies should advice their distributors to have their warehouse beside
of highways so that trucks can go easily and the restriction problems can be
solved.
 Transporters coming to Patna should have contacts with local brokers to have
return goods at the earliest possible time.
7.3 Limitations
 Assumptions: This research assumes that sales data for last year will be the
demand for next year.
 Time constraint: Due to lesser time, many C & F in different areas were not
covered which restricts this research to certain areas only.
 Supply Chain Model: Due to unavailability of secondary data .
Page 63
References
 Dr G Karmakar and Dr. G. D. Banerjee (2006), 'opportunities and challenges in
the Indian dairy Industry' Issue 9, NABARD
 Nimah Mazaheri, Edouard Al-dahdah, Sandeep Poundrik & Soujanya
Chodavarapu (2013), ' leadership and institutional change in the public provision
of transportation infrastructure: an analysis of india’s bihar' vol. 49, no. 1, 19–35,
rutledge taylor and francis group
 Harish chawla (2007), ' Amul India: A Social Development Enterprise'Asian
case research journal, vol. 11, issue 2, 293–326
 Rajendra Nargundkar (2014), 'Marketing Research - Text and Cases'
Page 64
Appendix 1
Interview Guide for C&F
Dear respondent, we students of Chandragupt Institute of Management Patna are
conducting a small survey on existing logistic condition in Bihar. The information given
by you will be kept strictly confidential and will be used for academic purposes only.
General information
 Name of company
 Name of company (warehouse)
 Location of warehouse
 Production location of your company
 Distributor locations in Bihar
Warehouse design
 Total space
 Floor storage
 Shelf storage
 Total Capacity (MT)
 Cold storage (Y/N)
Page 65
Stock in warehouse
 Average number of products
 Average product weight
 Stock turnover rate
Inbound delivery(daily)
1. Number of trucks
2. Types of truck
3. No of cartoons received
4. Average value
5. Average weight
6. Average lead time
Order handling
 Average numbers of order per day
 Standard size of order
 Any minimum ordering quantity
 Seasonal influence on order(Y/N). If yes specify
Outbound Delivery (daily)
Page 66
 Mode of transportation
o company owned
o 3PL
 Number of shipment
 Type of vehicles
 Average shipment size/quantity
 Shipment in one vehicle
o One distributor
o Multiple distributor
 Normal lead time
Cost
 Basis of cost of transportation
o Value of goods
o Weight of goods
o Number of vehicles
o Distance from warehouse
 Does transporter charges cost for both way and only one way?
Page 67
 Blockage on bridges is having impact on logistics(Y/N)? If yes then please
specify the problem?
 Cost increase in transportation in last two years-
 Is there difference in cost for north Bihar or south Bihar(Y/N)? If yes what is
the percentage difference?
Page 68
Interview Guide for transporter (Intra distribution)
Dear respondent, we students of Chandragupt Institute of Management Patna are
conducting a small survey on existing logistic condition in Bihar. The information given
by you will be kept strictly confidential and will be used for academic purposes only.
o Name of company
 Location
 Type
o Company owned
o 3PL
 Size of fleet
 Are you working for FMCG companies (Y/N)? If yes name them?
 Does your company involved in intra distribution in Bihar?Y/N
 Major route currently being used for intra distribution in Bihar?
 Average toll tax paid in different route?
 Major problems in different route?
 Are you charging both side freight?
 Basic of charging freight?
o Volume based
o Distance based
o Value based
o Vehicle type based
Page 69
 What is the impact of blockage of big vehicles on two major bridges of Bihar on
your business?
 Percentage of cost increase in transportation in last two year?
 Changes in the public infrastructure in last 2 years?
 Average lead time?
 Average freight charge for north Bihar and South Bihar
North charge South charge
Less than 100 km Less than 100km
Less than 150km Less than 150km
Less than 200km Less than 200km
Page 70
Interview Guide for transporter inward
Dear respondent, we students of Chandragupt Institute of Management Patna are
conducting a small survey on existing logistic condition in Bihar. The information given
by you will be kept strictly confidential and will be used for academic purposes only.
 Name of company
 Location
 Type
o Company owned
o 3PL
 Size of fleet
 Are you working for FMCG companies (Y/N)? If yes name them?
 Does your company involved in inward logistic to Patna from other state? Y/N
 Major route currently being used to reach warehouse in Patna?
 Average toll tax paid in different route?
 Major problems in different route?
 Are you charging bothside freight?
 Basic of charging freight?
Page 71
o Volume based
o Distance based
o Value based
o Vehicle type based
 What are the business opportunities available in Bihar for logistics? How it is
different from other states?
Page 72
Questionnaire for Factors of transportation
Dear respondent, we students of Chandragupt Institute of Management Patna are
conducting a small survey on existing logistic condition in Bihar. The information given
by you will be kept strictly confidential and will be used for academic purposes only.
Name of the company
Name of the respondent
Please rate these factors impacting logistics on the basis of their impact on cost and time
from
1= very low impact
2 =low impact
3=moderate impact
4=high impact
5= very high impact
Factors:-
 Fuel price
 Distance
 Weight / volume
 Route(bridges)
Page 73
 Value of goods
 Toll charge
 Traffic/congestion
 Condition of road
 Publicly provided infrastructure
 Road Safety policy and restriction
Page 74
Annexure 2
S no Place Distance Type of
truck
Capacity
in
tonnes
Charge(
from
patna)
Freight
per mt
Charge(from
hajipur)
Freight
per mt
1 Muzzafarpur 6 wheeler 9 5500 611 5500 611
10
wheeler
15 7150 477 6150 410
2 Samastipur 6
wheeler
9 6000 667 6000 667
1109 7 4500
10
wheeler
15 7800 520 6800 453
3 Araria 6
wheeler
9 11000 1222 11000 1222
10
wheeler
15 14300 953 13300 887
4 Begusarai 6
wheeler
9 6500 722 6500 722
1109 7 5000
10
wheeler
15 8450 563 7450 497
5 Bhagalpur 6
wheeler
9 10500 1167 10500 1167
10
wheeler
15 13650 910 12650 843
6 Arrah 6
wheeler
9 4000 444 4000 444
Page 75
10
wheeler
15 5200 347 4200 280
7 Khagaria 6
wheeler
9 6000 667 6000 667
10
wheeler
15 7800 520 6800 453
8 Kisanganj 6
wheeler
9 14000 1556 14000 1556
1109 7 12200 1743 12200 1743
10
wheeler
15 18200 1213 17200 1147
9 Gopalganj 6
wheeler
9 7000 778 7000 778
10
wheeler
15 9100 607 8100 540
10 Purnia 6
wheeler
9 14000 1556 14000 1556
1109 7 12200 1743 12200 1743
10
wheeler
15 18200 1213 17200 1147
11 Jehanabad 6
wheeler
9 4000 444 4000 444
10
wheeler
15 5200 347 4200 280
12 Darbhanga 6
wheeler
9 7500 833 7500 833
10 15 9750 650 8750 583
Page 76
wheeler
13 Gaya 6
wheeler
9 5000 556 5000 556
10
wheeler
15 6500 433 5500 367
14 Motihari 6
wheeler
9 8000 889 8000 889
10
wheeler
15 10400 693 9400 627
15 Bhagalpur 6
wheeler
9 10500 1167 10500 1167
10
wheeler
15 14000 933 13000 867
16 Saharsa 6
wheeler
9 11000 1222 11000 1222
1109 7 9300 1329 9300 1329
10
wheeler
15 14300 953 13300 887
17 Madhepura 6
wheeler
9 11000 1222 11000 1222
1109 7 9300 1329 9300 1329
10
wheeler
15 14300 953 13300 887
18 Supaul 6
wheeler
9 11000 1222 11000 1222
1109 7 9300 1329 9300 1329
10 15 14300 953 13300 887
Page 77
wheeler
19 Purnia 6
wheeler
9 13000 1444 13000 1444
10
wheeler
15 16900 1127 15900 1060
20 Katihar 6
wheeler
9 14000 1556 14000 1556
10
wheeler
15 18200 1213 17200 1147
21 Madhubani 6
wheeler
9 9500 1056 9500 1056
10
wheeler
15 12350 823 11350 757
22 Samastipur 6
wheeler
9 6000 667 6000 667
10
wheeler
15 7800 520 6800 453
23 Arrah 6
wheeler
9 6000 667 6000 667
10
wheeler
15 7800 520 6800 453
24 Biharsarif(nalanda) 6
wheeler
9 6000 667 6000 667
10
wheeler
15 7800 520 6800 453
25 Arwal 6 9 4500 500 4500 500
Page 78
wheeler
10
wheeler
15 5850 390 4850 323
26 Kaimur(bhabhua) 6
wheeler
9 11000 1222 11000 1222
10
wheeler
15 14300 953 13300 887
27 Lakhisarai 6
wheeler
9 6500 722 6500 722
10
wheeler
15 8450 563 7450 497
28 Jamui 6
wheeler
9 8000 889 8000 889
10
wheeler
15 10400 693 9400 627
29 Nawada 6
wheeler
9 6500 722 6500 722
10
wheeler
15 8450 563 7450 497
30 Motihari 6
wheeler
9 6500 722 6500 722
10
wheeler
15 8450 563 7450 497
31 Betiah 6
wheeler
9 8000 889 8000 889
10
wheeler
15 10400 693 9400 627
Page 79
32 Buxar 6
wheeler
9 5000 556 5000 556
10
wheeler
15 6500 433 5500 367
33 Banka 6
wheeler
9 11000 1222 11000 1222
10
wheeler
15 14300 953 13300 887
34 Munger 6
wheeler
9 10000 1111 10000 1111
10
wheeler
15 13000 867 12000 800
35 Rohtas 6
wheeler
9 9000 1000 9000 1000
10
wheeler
15 11700 780 10700 713
36 Hajipur 6
wheeler
9 3500 389 3500 389
10
wheeler
15 4550 303 3550 237
37 Sheikhpura 6
wheeler
9 6000 667 6000 667
10
wheeler
15 7800 520 6800 453
38 Shivhar 6
wheeler
9 7000 778 7000 778
10 15 9100 607 8100 540
Page 80
wheeler
39 Saran 6
wheeler
9 4000 444 4000 444
1109 7 3000 429 3000 429
10
wheeler
15 5200 347 4200 280
40 Siwan 6
wheeler
9 5000 556 5000 556
10
wheeler
15 6500 433 5500 367
41 Sitamarhi 6
wheeler
9 7200 800 7200 800
709 5 5000 1000 5000 1000
10
wheeler
15 9360 624 8360 557
42 Narkatiaganj 6
wheeler
9 9500 1056 9500 1056
1109 7 8100 1157 8100 1157
Page 81
Appendix 3
NORTH BIHAR
Location Distributor Name Sales in MT
Begusarai Nirmal Dist 50.98
Need 0.86
Swastic Agro Agency 32.79
Total 84.63
Betiah Bhagwati Agency 34.426
Sai Enterprise 4.98
Total 41.406
Chakia Deepak Enterprise 4.61
Chapra Chorasia Trading 53.986
M Lal D Narayan 59.792
R K Mission 38.97
Total 147.749
Dalsinghsarai Shree Hanuman Traders 15.943
Darbhanga Tarjeswar Trading 94.392
Durga Agency 222.928
Rani Sati Sales 23.206
Total 340.526
Gopalganj Narayan Traders 22.16
Shiv Shakti Traders Co 30.07
Page 82
Total 52.23
Hajipur A.R Enterprise 33.445
Praveen Enterprise 111.33
Siddwani Traders 13.42
Total 158.195
Supaul Chunilal Rameswarlal 16.56
Mohanka 3.04
Total 19.6
Siwan Chorasia Trading 156.07
J.P Enerprise 146.345
Total 302.415
Sitamarhi Bihar Agency 55.91
Misra Trading 35.61
Total 91.52
Saharsa H B Enerprise 74.196
Rahul Trade Concern 56.833
Vaishali Enterprise 3.66
Total 134.689
Samastipur A K Traders 19.73
Shee Krishana Enterprise 4.61
Shayam Trading 42.916
Total 67.256
Page 83
Raxual Sikaria Brother 58.853
Purnia Laxmi Enterprise 1.96
Pokhanna Pareswarlal 96.403
Shivheera Trading 2.65
Total 101.013
Narkatiaganj Doodhwala Milk Plaza 78.05
Ganpati Traders 20.212
Total 98.262
Muzaffapur Jeewan Dhara Agency 190.39
B C Sales 163.972
Mansi Traders 175.046
Shakarambari Tea
Company
94.04
Total 623.448
Motihari Amirlal Vishnu Prasad 128.23
Jagdave Traders 75.087
Sakshi Traders 0.795
Total 204.112
Madhbani Anshumann Traders 21.87
Kishanganj 139 BN B&F 17.114
Jishan Traders Co 37.033
Total 54.147
Page 84
Khagaria Jyoti Traders Co 2.42
Katihar Reckha Traders 479
Saraf Brother Agency 121.735
Total 600.735
Jhanjharpur Sanjay Kumar Satish
Kumar
44.138
SOUTH BIHAR
Location Distributor Name Sales In MT
Bhabhua Agarwal Traders 2.43
Bhagalpur Asoka Enterprise 17.94
Commercial Enterprise 146.154
Lalji Saha Visnu 156.465
Total 320.555
Bihar Sharif Kiran Brother 52.31
Trade Linkar 143.54
Total 195.853
Bodh Gaya Surya Agency 104.483
Buxar B.D Agency 5.946
Buxar Ttading Co 54.93
Sonali Enterprise 5.22
Total 66.14
Page 85
Danapur Shakti Distrubutor 57.82
Shree Shakhubhir Enterprise 2.74
Total 60.56
Dehri On Sone Ashoka Agency 13.99
Rahul Enterprise 3.33
Total 17.33
Danapur Cant Asc Cant 2.42
Gaya Aditi Enterprise 22.49
Anand Enterprise 59.409
Gaya Electronic 34.44
Jai Durga Bhandar 22.68
M/S Pista 39.846
Srk Traders 56.443
Smurti Traders 64.19
Vishnu Corp 76.826
Gaya Asc Cannt 1.86
Total 378.184
Jamalpur Gopal Store 21.89
Sunil Traders 47.522
Total 69.412
Jammui Ganesh Store 36.66
Jehanabad Kiran Enterprise 42.243
Page 86
Vaishaivani Sales 0.02
Total 42.263
Sherghati Gaya Prasad & Sons 18.39
Sasaram Anupurna Traders 63.87
Nitya Enterprise 21
Total 84.87
Patna Anand Enterprise 80.15
Kasera&Co 134.683
Anand Sales Co 90.07
Kawshalya Enterprise 94.097
Khanna Distrubutor 135.863
A.N Enterprise 150.35
Miitunjay Enterprise 0.19
Ram Traders 67.33
Shrimaaa Enterprise 126.83
Maa Sheila Enerprise 113.775
Narayan Enterprise 21.06
Rajshree 134.825
R.K Mission 0.09
Rajan Tradrs 124.67
Vikash Enterprise 113.05
Vriudavan 35.127
Page 87
Total 1422.16
Nawada Lalchand Rameshwarla 252.049
Naugachia Arun Kumar Traders 18.37
Baba Traders 2.28
Total 20.65
Munger Habeeb Store 75.657
Vinayak Marketing 17.743
Total 93.4
Masuarhi Jai Mata Di 25.104
Madhepura A K Enterprise 10.35
Lakhisarai Sri Bhagwati Agency 42.83
Jhaja Ram Bhandar 51.37
Rajgir Sri Ram Trading 33.12

More Related Content

What's hot

Summer internship project in Reliance Dairy
Summer internship project in Reliance DairySummer internship project in Reliance Dairy
Summer internship project in Reliance DairyBiman Dewan
 
SUMMER TRAINING REPORT of amul whole
SUMMER TRAINING REPORT of amul wholeSUMMER TRAINING REPORT of amul whole
SUMMER TRAINING REPORT of amul wholeTushar Sinha
 
Vadilal industry limited ; alay
Vadilal industry limited ; alayVadilal industry limited ; alay
Vadilal industry limited ; alayjitharadharmesh
 
Ammmmmmmuuuuuullllll
AmmmmmmmuuuuuullllllAmmmmmmmuuuuuullllll
Ammmmmmmuuuuuullllllvishdhwani
 
SIP report-amul(gcmmf) beat restructuring of distribution network channel
SIP report-amul(gcmmf) beat restructuring of distribution network channelSIP report-amul(gcmmf) beat restructuring of distribution network channel
SIP report-amul(gcmmf) beat restructuring of distribution network channelParas Adesara
 
0601051 post launch study of amul probiotic sugarfree ice cream
0601051 post launch study of amul probiotic sugarfree ice cream0601051 post launch study of amul probiotic sugarfree ice cream
0601051 post launch study of amul probiotic sugarfree ice creamSupa Buoy
 
Amul Mithaimate Analysis Report
Amul Mithaimate Analysis Report Amul Mithaimate Analysis Report
Amul Mithaimate Analysis Report Abhishek Gupta
 
Sangam dairy project yedukondalu
Sangam dairy project   yedukondaluSangam dairy project   yedukondalu
Sangam dairy project yedukondaluVenkata Reddy
 
Comfed: A Report on Sudha Ice Cream in Patna
Comfed: A Report on Sudha Ice Cream in PatnaComfed: A Report on Sudha Ice Cream in Patna
Comfed: A Report on Sudha Ice Cream in PatnaKritika Maskara
 
Kushagra Shukla BBA 2010-13
Kushagra Shukla BBA 2010-13Kushagra Shukla BBA 2010-13
Kushagra Shukla BBA 2010-13Kushagra Shukla
 
internship report on dairy industry for marketing
internship report on dairy industry for marketinginternship report on dairy industry for marketing
internship report on dairy industry for marketingAdvanced Communications
 
Study on the penetration of amul kool milk
Study on the penetration of amul kool milkStudy on the penetration of amul kool milk
Study on the penetration of amul kool milkProjects Kart
 
consumer behavior & satisfaction towards Amul milk
consumer behavior & satisfaction towards Amul milkconsumer behavior & satisfaction towards Amul milk
consumer behavior & satisfaction towards Amul milkMorisha Roy
 
Reliance dairy life project location:Ludhiana
Reliance dairy life project location:LudhianaReliance dairy life project location:Ludhiana
Reliance dairy life project location:LudhianaTanuj Ashpnani
 
Market study-of-mango-juice-in-hindusthan-coca-cola-beverages-pvt-ltd-mba-pro...
Market study-of-mango-juice-in-hindusthan-coca-cola-beverages-pvt-ltd-mba-pro...Market study-of-mango-juice-in-hindusthan-coca-cola-beverages-pvt-ltd-mba-pro...
Market study-of-mango-juice-in-hindusthan-coca-cola-beverages-pvt-ltd-mba-pro...Lokesh Ranjan
 
Project report 0n amul
Project report 0n amulProject report 0n amul
Project report 0n amulmanojmawale
 

What's hot (20)

Summer internship project in Reliance Dairy
Summer internship project in Reliance DairySummer internship project in Reliance Dairy
Summer internship project in Reliance Dairy
 
SUMMER TRAINING REPORT of amul whole
SUMMER TRAINING REPORT of amul wholeSUMMER TRAINING REPORT of amul whole
SUMMER TRAINING REPORT of amul whole
 
Vadilal industry limited ; alay
Vadilal industry limited ; alayVadilal industry limited ; alay
Vadilal industry limited ; alay
 
Ammmmmmmuuuuuullllll
AmmmmmmmuuuuuullllllAmmmmmmmuuuuuullllll
Ammmmmmmuuuuuullllll
 
Amul final pdf
Amul final pdfAmul final pdf
Amul final pdf
 
SIP report-amul(gcmmf) beat restructuring of distribution network channel
SIP report-amul(gcmmf) beat restructuring of distribution network channelSIP report-amul(gcmmf) beat restructuring of distribution network channel
SIP report-amul(gcmmf) beat restructuring of distribution network channel
 
0601051 post launch study of amul probiotic sugarfree ice cream
0601051 post launch study of amul probiotic sugarfree ice cream0601051 post launch study of amul probiotic sugarfree ice cream
0601051 post launch study of amul probiotic sugarfree ice cream
 
Amul Mithaimate Analysis Report
Amul Mithaimate Analysis Report Amul Mithaimate Analysis Report
Amul Mithaimate Analysis Report
 
Sangam dairy project yedukondalu
Sangam dairy project   yedukondaluSangam dairy project   yedukondalu
Sangam dairy project yedukondalu
 
Comfed: A Report on Sudha Ice Cream in Patna
Comfed: A Report on Sudha Ice Cream in PatnaComfed: A Report on Sudha Ice Cream in Patna
Comfed: A Report on Sudha Ice Cream in Patna
 
Kushagra Shukla BBA 2010-13
Kushagra Shukla BBA 2010-13Kushagra Shukla BBA 2010-13
Kushagra Shukla BBA 2010-13
 
internship report on dairy industry for marketing
internship report on dairy industry for marketinginternship report on dairy industry for marketing
internship report on dairy industry for marketing
 
Study on the penetration of amul kool milk
Study on the penetration of amul kool milkStudy on the penetration of amul kool milk
Study on the penetration of amul kool milk
 
consumer behavior & satisfaction towards Amul milk
consumer behavior & satisfaction towards Amul milkconsumer behavior & satisfaction towards Amul milk
consumer behavior & satisfaction towards Amul milk
 
Internship report md
Internship report   mdInternship report   md
Internship report md
 
Gopal namkeen report
Gopal namkeen reportGopal namkeen report
Gopal namkeen report
 
Amul Report( Durgesh)
Amul Report( Durgesh)Amul Report( Durgesh)
Amul Report( Durgesh)
 
Reliance dairy life project location:Ludhiana
Reliance dairy life project location:LudhianaReliance dairy life project location:Ludhiana
Reliance dairy life project location:Ludhiana
 
Market study-of-mango-juice-in-hindusthan-coca-cola-beverages-pvt-ltd-mba-pro...
Market study-of-mango-juice-in-hindusthan-coca-cola-beverages-pvt-ltd-mba-pro...Market study-of-mango-juice-in-hindusthan-coca-cola-beverages-pvt-ltd-mba-pro...
Market study-of-mango-juice-in-hindusthan-coca-cola-beverages-pvt-ltd-mba-pro...
 
Project report 0n amul
Project report 0n amulProject report 0n amul
Project report 0n amul
 

Viewers also liked

AMUL BUTTER PROJECT FILE
AMUL BUTTER PROJECT FILEAMUL BUTTER PROJECT FILE
AMUL BUTTER PROJECT FILEDEEPAK VERMA
 
AMUL BUTTER PROJECT FILE
AMUL BUTTER PROJECT FILE AMUL BUTTER PROJECT FILE
AMUL BUTTER PROJECT FILE DEEPAK VERMA
 
Amul extensive report
Amul extensive reportAmul extensive report
Amul extensive reportAnkur17091988
 
Customer satisfaction towards ponlait by product
Customer satisfaction towards ponlait by productCustomer satisfaction towards ponlait by product
Customer satisfaction towards ponlait by productSaranraj S
 
Project report amul (gcmmf)
Project report amul (gcmmf)Project report amul (gcmmf)
Project report amul (gcmmf)Balwant singh
 
A study on inventory classification technique for effective store management ...
A study on inventory classification technique for effective store management ...A study on inventory classification technique for effective store management ...
A study on inventory classification technique for effective store management ...Abdul Haseeb
 
73347633 milma-os
73347633 milma-os73347633 milma-os
73347633 milma-osKoshy Geoji
 
Amul Project by Durgesh Sharma ( ICEM )
Amul Project by Durgesh Sharma ( ICEM )Amul Project by Durgesh Sharma ( ICEM )
Amul Project by Durgesh Sharma ( ICEM )thomassujith96
 
Project: Analysis of Marketing and Branding Strategies of Amul Butter
Project: Analysis of Marketing and Branding Strategies of Amul ButterProject: Analysis of Marketing and Branding Strategies of Amul Butter
Project: Analysis of Marketing and Branding Strategies of Amul ButterGunjan Kalita
 
Amul supply chain management
Amul supply chain managementAmul supply chain management
Amul supply chain managementpramodvishe
 
A Study on Consumer Perception about Amul Ice Cream
A Study on Consumer Perception about Amul Ice CreamA Study on Consumer Perception about Amul Ice Cream
A Study on Consumer Perception about Amul Ice CreamAslam Khan
 

Viewers also liked (20)

AMUL BUTTER PROJECT FILE
AMUL BUTTER PROJECT FILEAMUL BUTTER PROJECT FILE
AMUL BUTTER PROJECT FILE
 
Acknowledgement
AcknowledgementAcknowledgement
Acknowledgement
 
AMUL BUTTER PROJECT FILE
AMUL BUTTER PROJECT FILE AMUL BUTTER PROJECT FILE
AMUL BUTTER PROJECT FILE
 
Amul extensive report
Amul extensive reportAmul extensive report
Amul extensive report
 
Milma prrofile
Milma prrofileMilma prrofile
Milma prrofile
 
Brijesh rana
Brijesh ranaBrijesh rana
Brijesh rana
 
Report on amul
Report on amulReport on amul
Report on amul
 
Amul_FinalReport_PDF
Amul_FinalReport_PDFAmul_FinalReport_PDF
Amul_FinalReport_PDF
 
Ponlait
PonlaitPonlait
Ponlait
 
Customer satisfaction towards ponlait by product
Customer satisfaction towards ponlait by productCustomer satisfaction towards ponlait by product
Customer satisfaction towards ponlait by product
 
Milma, kollam
Milma, kollamMilma, kollam
Milma, kollam
 
Amul project
Amul projectAmul project
Amul project
 
Project report amul (gcmmf)
Project report amul (gcmmf)Project report amul (gcmmf)
Project report amul (gcmmf)
 
A study on inventory classification technique for effective store management ...
A study on inventory classification technique for effective store management ...A study on inventory classification technique for effective store management ...
A study on inventory classification technique for effective store management ...
 
73347633 milma-os
73347633 milma-os73347633 milma-os
73347633 milma-os
 
Amul Project by Durgesh Sharma ( ICEM )
Amul Project by Durgesh Sharma ( ICEM )Amul Project by Durgesh Sharma ( ICEM )
Amul Project by Durgesh Sharma ( ICEM )
 
Project: Analysis of Marketing and Branding Strategies of Amul Butter
Project: Analysis of Marketing and Branding Strategies of Amul ButterProject: Analysis of Marketing and Branding Strategies of Amul Butter
Project: Analysis of Marketing and Branding Strategies of Amul Butter
 
Amul supply chain management
Amul supply chain managementAmul supply chain management
Amul supply chain management
 
Amul report
Amul reportAmul report
Amul report
 
A Study on Consumer Perception about Amul Ice Cream
A Study on Consumer Perception about Amul Ice CreamA Study on Consumer Perception about Amul Ice Cream
A Study on Consumer Perception about Amul Ice Cream
 

Similar to Amul report

BRTC-measuring service availability of using servqual model
BRTC-measuring service availability of using servqual modelBRTC-measuring service availability of using servqual model
BRTC-measuring service availability of using servqual modelJamil Ahmed AKASH
 
Analytical Study On The Effectiveness Of The Probiking Concept Introduced By ...
Analytical Study On The Effectiveness Of The Probiking Concept Introduced By ...Analytical Study On The Effectiveness Of The Probiking Concept Introduced By ...
Analytical Study On The Effectiveness Of The Probiking Concept Introduced By ...Viraj Hegde
 
Socio-Economic Analysis of Bus Rapid Mass Transit System( BRT) in Lahore.docx
 Socio-Economic Analysis of Bus Rapid Mass Transit System( BRT) in Lahore.docx Socio-Economic Analysis of Bus Rapid Mass Transit System( BRT) in Lahore.docx
Socio-Economic Analysis of Bus Rapid Mass Transit System( BRT) in Lahore.docxMuhammad Hussain Rana
 
Improvementof servicequalityatautomobileworkshopinbangladesh
Improvementof servicequalityatautomobileworkshopinbangladeshImprovementof servicequalityatautomobileworkshopinbangladesh
Improvementof servicequalityatautomobileworkshopinbangladeshlamaram32
 
Two-Wheeler Market, Consumer Behaviour And Marketing Strategies
Two-Wheeler Market, Consumer Behaviour And Marketing StrategiesTwo-Wheeler Market, Consumer Behaviour And Marketing Strategies
Two-Wheeler Market, Consumer Behaviour And Marketing StrategiesViraj Hegde
 
Appraisal of multilevel car parking facility at kg road cbd area, bengaluru city
Appraisal of multilevel car parking facility at kg road cbd area, bengaluru cityAppraisal of multilevel car parking facility at kg road cbd area, bengaluru city
Appraisal of multilevel car parking facility at kg road cbd area, bengaluru cityeSAT Publishing House
 
Determining trip generation of commercial land use of kaptai
Determining trip generation of commercial land use of kaptaiDetermining trip generation of commercial land use of kaptai
Determining trip generation of commercial land use of kaptaiKazi Mahfuzur Rahman
 
Supermarket implementation at warehouse (Rakesh Pande)
Supermarket implementation at warehouse (Rakesh Pande)Supermarket implementation at warehouse (Rakesh Pande)
Supermarket implementation at warehouse (Rakesh Pande)Quantum School of Business
 
How digital marketing creates user engagement , summer internship project rep...
How digital marketing creates user engagement , summer internship project rep...How digital marketing creates user engagement , summer internship project rep...
How digital marketing creates user engagement , summer internship project rep...Priyansh Kesarwani
 
Nhdp get the fact - itp India - Highways
Nhdp   get the fact - itp India - HighwaysNhdp   get the fact - itp India - Highways
Nhdp get the fact - itp India - HighwaysArnaud Renard
 
15PGDMHR42_Shubham Govil
15PGDMHR42_Shubham Govil15PGDMHR42_Shubham Govil
15PGDMHR42_Shubham GovilShubham Govil
 
imp-003-impact-eval-report-on-socioeconomic-impact-study-of-metro-bus-project
imp-003-impact-eval-report-on-socioeconomic-impact-study-of-metro-bus-projectimp-003-impact-eval-report-on-socioeconomic-impact-study-of-metro-bus-project
imp-003-impact-eval-report-on-socioeconomic-impact-study-of-metro-bus-projectNaseem Khan Achakzai
 
Bajaj project final
Bajaj project finalBajaj project final
Bajaj project finalShiv Kumar
 
Research on Commercial Vehicles
Research on Commercial VehiclesResearch on Commercial Vehicles
Research on Commercial VehiclesGaurav Gupta
 
Bupb 0118-18
Bupb 0118-18Bupb 0118-18
Bupb 0118-18Rafi Asef
 
Study On Automobile Market of India
Study On Automobile Market of India Study On Automobile Market of India
Study On Automobile Market of India Priyank Thada
 

Similar to Amul report (20)

BRTC-measuring service availability of using servqual model
BRTC-measuring service availability of using servqual modelBRTC-measuring service availability of using servqual model
BRTC-measuring service availability of using servqual model
 
Uber bangladesh
Uber bangladeshUber bangladesh
Uber bangladesh
 
Analytical Study On The Effectiveness Of The Probiking Concept Introduced By ...
Analytical Study On The Effectiveness Of The Probiking Concept Introduced By ...Analytical Study On The Effectiveness Of The Probiking Concept Introduced By ...
Analytical Study On The Effectiveness Of The Probiking Concept Introduced By ...
 
Socio-Economic Analysis of Bus Rapid Mass Transit System( BRT) in Lahore.docx
 Socio-Economic Analysis of Bus Rapid Mass Transit System( BRT) in Lahore.docx Socio-Economic Analysis of Bus Rapid Mass Transit System( BRT) in Lahore.docx
Socio-Economic Analysis of Bus Rapid Mass Transit System( BRT) in Lahore.docx
 
Improvementof servicequalityatautomobileworkshopinbangladesh
Improvementof servicequalityatautomobileworkshopinbangladeshImprovementof servicequalityatautomobileworkshopinbangladesh
Improvementof servicequalityatautomobileworkshopinbangladesh
 
jaypee cement cps
jaypee cement cpsjaypee cement cps
jaypee cement cps
 
Two-Wheeler Market, Consumer Behaviour And Marketing Strategies
Two-Wheeler Market, Consumer Behaviour And Marketing StrategiesTwo-Wheeler Market, Consumer Behaviour And Marketing Strategies
Two-Wheeler Market, Consumer Behaviour And Marketing Strategies
 
A Study of Customer’s Preference Towards CNG Cars With Special Reference To N...
A Study of Customer’s Preference Towards CNG Cars With Special Reference To N...A Study of Customer’s Preference Towards CNG Cars With Special Reference To N...
A Study of Customer’s Preference Towards CNG Cars With Special Reference To N...
 
Appraisal of multilevel car parking facility at kg road cbd area, bengaluru city
Appraisal of multilevel car parking facility at kg road cbd area, bengaluru cityAppraisal of multilevel car parking facility at kg road cbd area, bengaluru city
Appraisal of multilevel car parking facility at kg road cbd area, bengaluru city
 
Determining trip generation of commercial land use of kaptai
Determining trip generation of commercial land use of kaptaiDetermining trip generation of commercial land use of kaptai
Determining trip generation of commercial land use of kaptai
 
Supermarket implementation at warehouse (Rakesh Pande)
Supermarket implementation at warehouse (Rakesh Pande)Supermarket implementation at warehouse (Rakesh Pande)
Supermarket implementation at warehouse (Rakesh Pande)
 
How digital marketing creates user engagement , summer internship project rep...
How digital marketing creates user engagement , summer internship project rep...How digital marketing creates user engagement , summer internship project rep...
How digital marketing creates user engagement , summer internship project rep...
 
Nhdp get the fact - itp India - Highways
Nhdp   get the fact - itp India - HighwaysNhdp   get the fact - itp India - Highways
Nhdp get the fact - itp India - Highways
 
15PGDMHR42_Shubham Govil
15PGDMHR42_Shubham Govil15PGDMHR42_Shubham Govil
15PGDMHR42_Shubham Govil
 
imp-003-impact-eval-report-on-socioeconomic-impact-study-of-metro-bus-project
imp-003-impact-eval-report-on-socioeconomic-impact-study-of-metro-bus-projectimp-003-impact-eval-report-on-socioeconomic-impact-study-of-metro-bus-project
imp-003-impact-eval-report-on-socioeconomic-impact-study-of-metro-bus-project
 
Bajaj project final
Bajaj project finalBajaj project final
Bajaj project final
 
Research on Commercial Vehicles
Research on Commercial VehiclesResearch on Commercial Vehicles
Research on Commercial Vehicles
 
Bupb 0118-18
Bupb 0118-18Bupb 0118-18
Bupb 0118-18
 
Study On Automobile Market of India
Study On Automobile Market of India Study On Automobile Market of India
Study On Automobile Market of India
 
MBA PROJECT
MBA PROJECTMBA PROJECT
MBA PROJECT
 

Amul report

  • 1. ANALYSIS OF OVERALL LOGISTICS(TRANSPORTATION) OF FMCG COMAPANIES IN BIHAR REGION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE DEGREE OF POST GRADUATE DIPLOMA IN MANAGEMENT CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA BY Danish Anwar 15/06/2014 CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA
  • 3. Page 3 SYNOPSIS The project "Analysis of existing logistics (Transportation) for FMCG companies in Bihar region" aims at understanding the current medium of transportation being used by different FMCG companies in Bihar. As analysts says that the urban market is being saturated at the same time due to different programs and developments by the governments the rural market size has been increased by the improvement in living standard and purchasing power of the people. So, in this situation product availability has became a major issue for all FMCG companies , and for availability transportation of goods is one of the major factors of it. Now talking about Bihar the rural population of Bihar is almost eight times more than that of urban population(Census:2011). Bihar is mainly separated into two parts by the holy river Ganges. So, for connectivity between north Bihar and south Bihar there are three bridges on Ganges Mahatma Gandhi Setup, Rajendra Bridge and Bikramshila Bridge in Patna, Mokama and Bhagalpur respectively. As far as these all three bridges were working there was no such issue like the current situation. In 2013 government banned passage of all kinds of heavy commercial vehicles on Rajendra Bridge due to safety reasons, as the bridge was not in a good condition. So, all the heavy commercial vehicle going towards north Bihar started going through mahatma Gandhi Setu . Mahatma Gandhi setu was itself in a paralyzed condition since last decade. Actually the maintenance that has to be done to the spring mechanism has not been done by the government and so, the bridge faced difficulties in standing straight.
  • 4. Page 4 Due to increase in load on the bridge the condition of bridge went on degrading day by day . In 2014 by the order of the Chief minister's office and district transport authority all ten and above wheelers vehicle were banned for passage from Mahatma Gandhi Setu. Here starts problem for transportation. Now due to restrictions on bridge need for six and below wheeler vehicles increased drastically but as the variable cost associated with multiaxle vehicles does not increase in that proportion as the capacity of the vehicle increases. So, the transporter and the customer both are having benefit in multiaxle vehicles. That is why nowadays transporters purchase mainly multiaxle vehicles. As the supply was short and the demand was high so by the theory of economics price will go high and that happened in actual also. FMCG companies already have a very low margin with their products they just play on volumes and another thing they can't increase the price in a certain territory. So with these constraints and the price rise in transportation has impacted their business. Another major issue is the cost associated with the inward delivery to the warehouse, in this case what happened in the last few years is that earlier there were some commodity available all the time for transporters to carry in return good while coming to Patna. But now there is no enough commodity available for transporters. Transporters generally charge one way freight from the company so the need for return goods is important for them. As there is no commodity available and also there is no such industry whose goods can be transported to other states so the transporters starting charging almost double
  • 5. Page 5 freight and even some of the transporters refused to come to Bihar. This has also impacted the business of FMCG companies in Bihar. This project tries explain about the transportation channel used for intra distribution in Bihar region by some top FMCG players like GCMMF, Parle, Nestle, HUL, GSK & Coalgate Palmolive, Reckitt Benckiser and ITC. The second part of project explains about the problems of transportation for C & F or company, transporter who is involved in inward logistics to Patna and also the transporters who are responsible for the product availability in Bihar i.e. the transporters that are involved in intra distribution. Third part of the project is a little bit analytical and in this part the factors that impact cost and time of transportation has been analyzed. The research design is descriptive and data collected is from primary as well as secondary source. Above mentioned FMCG companies C&F agents were interviewed. The transporters who were involved in the intra distribution were also interviewed . For the third part of the project a survey was conducted between transporters. The targeted population were all the transporters present in Patna. Convenience sampling was used to collect data. A total of 40 respondents were taken. The literature review done for this project helped in identification of major factors impacting cost and time of transportation. The responses were taken on a likert scale of five. After analyzing it was found that weight of goods is the most impactful variable affecting cost and time followed by Traffic jam & Road safety and security restrictions.
  • 6. Page 6 In the fourth part of project after all analysis of problems with transportation system a suggestion has came out from the analysis. Some other things like route scheduling has been done. Problem Statement: Analysis of problem in logistics for FMCG companies at the current stage due to less availability of commodity & blockage of big vehicles on major bridges that connects north Bihar to south Bihar. Research Methodology: Objectives of Project: The main objective of the Study can be listed as follows: A. Primary Objective 1. To study the existing logistics medium used by GCMMF and other FMCG companies like HUL ,Nestle , GSK & ITC in Bihar region. 2. To find the problems with the existing logistics network at current situation. 3. To find the factors that affect the logistics network in Bihar. (2 years trend down the line) B. Secondary Objective 1. To suggest some modification in existing logistics network to minimize cost.
  • 7. Page 7 Research Design: Descriptive research. Data sources & Type: The data sources used are both primary as well as secondary. Primary information was achieved by conducting interviews and survey with the help of interview guide and questionnaire. The secondary data such as sales data is obtained from Amul office in Patna. Research Tool: The main process of data collection was through filling of questionnaire and interviews. The questionnaire consists of interval questions where the respondent has to give points according to the 5 point likert scale. Sampling Methodology Sample unit & Frame: The set of all the transporters who are present in Patna . Sample size: The sample size taken here is of 42 for third objective and for rest of the two objectives 37 interviews were conducted. Sampling method: The sampling method adopted is convenience sampling.
  • 8. Page 8 DECLARATION This is to certify that, this report entitled “ANALYSIS OF EXISTING LOGISTICS(TRANSPORTATION) OF FMCG COMAPANIES IN BIHAR REGION” submitted by Danish Anwar to Chandragupt Institute of Management Patna, as a requirement for the award of the Post Graduate Diploma in Management, is a bonafide record of research work carried out by him/her under our supervision. The contents of this report, in full or in parts, have not been submitted to any other Institute or University for the award of any degree or diploma. (Mr. Rebti Raman) ------------------------------ (Sign) (Mr.Anoop Raj) ------------------------------- (Sign) Date: ___________________
  • 9. Page 9 ACKNOWLEDGEMENT The satisfaction that comes through the successful completion of any task would be incomplete without mentioning the names of people who made it possible, because success is the epitome of hard work & guidance. So with gratitude, I acknowledge all those guidance and encouragement that served as a beacon of light and crowned my efforts with success so far. I avail this opportunity to express with utmost sincerity my thanks to all the people of Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF Ltd.) for giving me this opportunity to undergo my summer internship in this prestigious organization. I am deeply grateful to Mr. Manoj Prabhakar & Mr. Rebti Raman, Assistant Sales Manager, for their support, suggestion and enthusiasm which helped me in the successful completion of this report and to have thorough knowledge of the subject and its application. I would like to thanks Prof. Anoop Raj, faculty mentor, for providing me the key inputs for the project and extending his continuous support during the tenure. I also express my gratitude to Dr. V. Mukund Das, Director, Chandragupt Institute of Management, Patna for giving me an opportunity to work with Amul. Danish Anwar
  • 10. Page 10 Table of Contents Chapter 1: Industry Profile...............................................................................................13 1.1 FMCG industry in India.................................................................................13 1.2 Dairy industry in India...................................................................................15 Chapter 2 : Introduction....................................................................................................17 2.1 Introduction to the organization.....................................................................17 2.1.1 Member Unions..............................................................................18 2.1.2 Distribution Network......................................................................19 2.2 History of Amul............................................................................................20 2.2.1 Amul Secret of Success..................................................................24 Chapter 3 : Logistic Medium of FMCG companies........................................................28 3.1 GlaxoSmithKline..........................................................................................28 3.2 Reckitt Benckiser..........................................................................................29 3.3 Parle Agro.....................................................................................................31 3.4 Colgate Palmolive.........................................................................................33 3.5 Hindustan Unilever Ltd.................................................................................34 3.6 Nestle India...................................................................................................36 3.7 GCMMF........................................................................................................37 Chapter 4 : Problem in Transportation.............................................................................39 4.1 Problem faced by C&F agent........................................................................39 4.2 Problems for transporters involved in inward logistics................................41 4.3 Problem faced by transporter (Intra distribution).........................................43 Chapter 5 : Factors Affecting Transportation................................................................45
  • 11. Page 11 5.1 Reliability Analysis.......................................................................................45 5.1.1 Result...............................................................................................46 5.1.2 Interpretation....................................................................................47 5.2 Factor Analysis.............................................................................................47 5.2.1 Results & Interpretation..................................................................47 Chapter 6 : Load Divison Model....................................................................................52 6.1 Data Analysis................................................................................................52 6.2 Calculation for benefits.................................................................................59 Chapter 7 : Summary & Recommendation......................................................................61 7.1 Conclusion....................................................................................................61 7.2 Recommendations.........................................................................................62 7.3 Limitations....................................................................................................62 References........................................................................................................................63 Appendix 1 Questionnaire & Interview guide..................................................................64 Appendix 2 Collected rate list.........................................................................................74 Appendix 3 Sales data.......................................................................................................81
  • 12. Page 12 List of Tables , Figures Table 2.1 GCMMF: An overview......................................................................................18 Table 2.2 Turnover details.................................................................................................25 Table 5.1 Alpha Table........................................................................................................46 Table 5.2 Case Processing Summary.................................................................................46 Table 5.3 Reliability Statistics...........................................................................................46 Table 5.4 KMO and Bartlett's test.....................................................................................48 Table 5.5 Total Variance Explained .................................................................................49 Table 5.6 Rotated Component matrix................................................................................50 Table 6.1 North Bihar........................................................................................................53 Table 6.2 South Bihar........................................................................................................54 Table 6.3 Other costs.........................................................................................................58 Figure 2.1 Foundation........................................................................................................22 Figure 5.1 Scree Plot..........................................................................................................55 Figure 6.1 Cost calculation and route scheduling..............................................................60
  • 13. Page 13 Chapter1:INDUSTRY PROFILE 1.1 FMCG Industry In India:- The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018. Food products are the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector. What are FMCG goods? FMCG goods are popularly known as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. Future lies in Rural India Rural areas expected to be the major driver for FMCG, as growth continues to be high in these regions. Rural areas saw a 16 per cent, as against 12 per cent rise in urban areas. Most companies rushed to capitalize on this, as they quickly went about increasing direct
  • 14. Page 14 distribution and providing better infrastructure. Companies are also working towards creating specific products specially targeted for the rural market. The Government of India has also been supporting the rural population with higher minimum support prices (MSPs), loan waivers, and disbursements through the National Rural Employment Guarantee Act (NREGA) programme. These measures have helped in reducing poverty in rural India and given a boost to rural purchasing power. Hence rural demand is set to rise with rising incomes and greater awareness of brands. Urban trends With rise in disposable incomes, mid- and high-income consumers in urban areas have shifted their purchasing trend from essential to premium products. In response, firms have started enhancing their premium products portfolio. Indian and multinational FMCG players are leveraging India as a strategic sourcing hub for cost-competitive product development and manufacturing to cater to international markets. Top Companies According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan UniLever. The top ten India FMCG brands are: 1.Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company)
  • 15. Page 15 3. Nestlé India 4. GCMMF (AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury India 8. Britannia Industries 9. Procter & Gamble Hygiene and Health Care 10. Marico Industries 1.2 Dairy Industry in India : Dairy industry is of crucial importance to India. The country is the world's largest milk producer, accounting for more than 13% of world's total milk production. It is the world's largest consumer of dairy products, consuming almost 100% of its own mi lk production.( Karmakar & Banerjee, 2006). Dairy products are a major source of cheap and nutritious food to millions of people in India and the only acceptable source of animal protein for large vegetarian segment of Indian population, particularly among the landless, small and marginal farmers and women. India has the highest livestock population in the world with 50% of the buffaloes and 20% of the world’s cattle population, most of which are milch cows and milch buffaloes. India’s dairy industry is considered as one of the most successful development programs in the post-Independence period. In the year 2006-07 the total milk production in the country was over 94.6 million tones with a per capita availability of 229 grams per day.
  • 16. Page 16 The industry had been recording an annual growth of 4% during the period 1993-2005, which is almost 3 times the average growth rate of the dairy industry in the world. The milk processing industry is small compared to the huge amount of milk produced every year. Only 10% of all the milk is delivered to some 400 dairy plants. A specific Indian phenomenon is the unorganized sector of milkmen, vendors who collect the milk from local producers and sell the milk in both, urban and non-urban areas, which handles around 65-70% of the national milk production. In the organized dairy industry, the cooperative milk processors have a 60% market share. The cooperative dairies process 90% of the collected milk as liquid milk whereas the private dairies process and sell only 20% of the milk collected as liquid milk and 80% for other dairy products with a focus on value-added products(Karmakar & Banerjee, 2006). Exports of dairy products have been growing at the rate of 25% per annum in the terms of quantity terms and 28% in terms of value since 2001. The major destinations for Indian dairy products are Bangladesh (23.1%), UAE (15.4%), US (15.6%) and Philippines (8.9%). In terms of products, SMP is the most important product accounting for about 63% of total export volume, followed by ghee and butter (11.7%) and WMP (Karmakar & Banerjee, 2006). Over the years, several brands have been created by cooperatives like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).
  • 17. Page 17 Chapter 2: Introduction 2.1 INTRODUCTION OF THE ORGANISATION Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of Milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Gujarat Milk Marketing Federation Ltd. (GCMMF) is the largest food product marketing organization in India. Its daily milk procurement is approx. 13 million liter per day from its 16,117 milk cooperative societies, 17 member unions covering 24 districts and 3.18 million milk producer members. It is the apex dairy cooperative organization of Gujarat. It is popularly known as AMUL. The main aim of the organization is to provide remunerative returns to the farmers and provide quality products to its consumers which are good value for the money they spend. GCMMF is largest dairy products exporter in India. GCMMF is the exclusive marketing organization of AMUL and SAGAR branded products. The AMUL brand is not only the product but it was a movement for economic freedom of the farmers. It is the Brand which give farmers the courage to Dream, to Hope and to Live. CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, has assigned its highest ratings of "AAA/Stable/P1+" to the various bank facilities of GCMMF.
  • 18. Page 18 Table 2.1 GCMMF: An Overview Year of Establishment 1973 Members 17 District Cooperative Milk Producers' Unions No. of Producer Members 3.37 Million No. of Village Societies 18,536 Total Milk handling capacity per day 24 Million litres per day Milk Collection (Total - 2014-15) 5.42 billion litres Milk collection (Daily Average 2014-15) 14.85 million litres Cattlefeed manufacturing Capacity 6340 Mts. per day Sales Turnover -(2014-15) Rs. 20733 Crores (US $ 3.4 Billion) 2.1.1 MemberUnions 1. Kaira District Cooperative Milk Producers' Union Ltd., Anand 2. Mehsana District Cooperative Milk Producers' Union Ltd, Mehsana 3. Sabarkantha District Cooperative Milk Producers' Union Ltd., Himatnagar 4. Banaskantha District Cooperative Milk Producers' Union Ltd., Palanpur 5. Surat District Cooperative Milk Producers' Union Ltd., Surat 6. Baroda District Cooperative Milk Producers' Union Ltd., Vadodara 7. Panchmahal District Cooperative Milk Producers' Union Ltd., Godhra 8. Valsad District Cooperative Milk Producers' Union Ltd., Valsad 9. Bharuch District Cooperative Milk Producers' Union Ltd., Bharuch
  • 19. Page 19 10. Ahmedabad District Cooperative Milk Producers' Union Ltd., Ahmedabad 11. Rajkot District Cooperative Milk Producers' Union Ltd., Rajkot 12. Gandhinagar District Cooperative Milk Producers' Union Ltd., Gandhinagar 13. Surendranagar District Cooperative Milk Producers' Union Ltd., Surendranagar 14. Amreli District Cooperative Milk Producers Union Ltd., Amreli 15. Bhavnagar District Cooperative Milk Producers Union Ltd., Bhavnagar 2.1.2 Distribution Network: Most producers work with marketing intermediaries to bring their products to market. The marketing intermediaries make up a marketing channel also called distribution channel. Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The zonal offices are located at Ahmedabad, Mumbai, New Delhi, Kolkata and Chennai. Moreover there are 49 Depots located across the country and GCMMF caters to 37 Export markets. A zero level of channel also called a direct marketing channel consists of a manufacturer selling directly to the final customers. A one level channel; contains one selling intermediary such as retailer to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in between.
  • 20. Page 20 GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular. GCMMF‟s products like Milk and Milk products are perishable. It becomes that much important for them to have a good distribution. Distribution Chart We can see from above figure that GCMMF distribution channel is simple and clear. The products change hands for three times before it reaches to the final consumer. First of all the products are stored at the Agents end who are mere facilitators in the network. Then the products are sold to wholesale dealers who then sell to retailers and then the product finally reaches the consumers. 2.2 History Of Amul In the year 1946 the first Milk union was established. This union was started with 250 liters of Milk per day. In the year 1946 the union was known as KAIRA DISTRICT CO- • FACTORY • C&F Agent • WHOLESELLER • RETAILER • CONSUMER
  • 21. Page 21 OPERATIVE MILK PRODUCERS‟ UNION. This union selected the brand name AMUL in 1955. The brand name Amul means “AMULYA”. This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Prolife Lassee, Amul Pro and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 2 billion in 2012). Today Amul is a symbol of many things like of the high- quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”). In the early 40‟s, the main sources of earning for the farmers of Kaira district were farming and selling of Milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates‟ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the Milk on their own by establishing a co- operative union, Instead of supplying Milk to
  • 22. Page 22 private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co- operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the Milk Figure 2.1 Foundation These village societies would collect the milk themselves and would decide the prices at which they can sell the Milk. The district union was also form to collect the Milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy Milk from the union. However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of
  • 23. Page 23 Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand. Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Cooperative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL. At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 14.85 million liters of milk every day. Since milk was a perishable commodity it becomes difficult to preserve milk for a longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1500 societies. With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November
  • 24. Page 24 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955. 2.2.1 Amul Secret Of Success: The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good. Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere. Amul has been able to:  Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations.  Bring at the command of the rural Milk producers the best of the technology and harness its fruit for betterment.  Provide a support system to the Milk producers without disturbing their agro- economic systems.  Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers.
  • 25. Page 25 Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense, Amul is an example par excellence, of an intervention for rural change. The Union looks after policy formulation, processing and marketing of Milk, provision of technical inputs to enhance Milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA. Amul (Anand Milk union ltd.) is based on four hands, which are coordinated with each other. The actual meaning of this symbol is co-ordination of four hands of different people by whom this union is at the top position in Asia. First hand is of farmers, without whom the organization would not have existed. Second hand is of processors, who process the raw material (Milk) into finished goods. Third hand is of marketer, without whom the product would have not reached the customers. Fourth hand is of customers, without whom the products would have not carried on. Table 2.2 Turnover details Sales Turnover Rs (million) US$ (in millions) 1994-95 11140 355
  • 26. Page 26 Sales Turnover Rs (million) US$ (in millions) 1995-96 13790 400 1996-97 15540 450 1997-98 18840 455 1998-99 22192 493 1999-00 22185 493 2000-01 22588 500 2001-02 23365 500 2002-03 27457 575 2003-04 28941 616 2004-05 29225 672 2005-06 37736 850 2006-07 42778 1050 2007-08 52554 1325 2008-09 67113 1504
  • 27. Page 27 Sales Turnover Rs (million) US$ (in millions) 2009-10 80053 1700 2010-11 97742 2172 2011-12 116680 2500 2012-13 137350 2540 2013-14 181434 3024 2014-15 207330 3410
  • 28. Page 28 Chapter 3 Logistic Medium of FMCG companies 3.1 GlaxoSmithKline GlaxoSmithKline is one of the world’s leading research based pharmaceuticals and healthcare companies is committed to improving the quality of human life by enabling people to do more, feel better and live longer. According to the officials of Patna office GSK is having highest turnover in FMCG goods in Bihar in the financial year 2014-15. The production location of company is Nabha, Sonipath and other parts of Himachal Pradesh. It takes around 7 to 8 days to reach products to Patna. The transportation takes place through 10 wheeler, 12 wheeler and 14 wheeler. The daily inbound delivery to Patna warehouse is about 7 to 8 truck having around 750 to 800 cartoons in each truck. The company ware house is located in Patna at Anishabad Shalimar cold storage which has storage capacity of 1080MT and the total space is 50000sq ft. The average number of products in the warehouse is 76sku and the average product quantity is 12kg per cartoons. The stock turnover rate is 12 days. For GlaxoSmithKline cold storage is required for some of its goods. The average value of product is 25lakhs in one truck which seems a good value and becomes risky for company in place like Bihar especially from Mohania to Patna. The company is having minimum ordering quantity which is 200 cartoons and that is the capacity of model-407 and average size of order is 400 cartoons (4.8tone) which is the capacity of Model-709 . It means company is using a mix of 407,709,1109 & six wheeler. There is seasonal influence ,especially in July, August, September the
  • 29. Page 29 overall demand is highest for example the highest demand of ENO is from march to September and for Horlicks and Oxtrocalcium the demand in summer is more . For Iodex the demand is high when rabi and kharif crop are harvested. during these times the vehicles movement increases. The distributor of the company is located in every districts of Bihar which means the company needs vehicles for whole Bihar. The company is using third party logistic for outbound delivery. The daily number of shipment from warehouse is 8 to 9 trucks and the vehicles used for transportation are 407, 709,1109 & 6 wheeler. The shipment is done by using one vehicle for both one distributor and multiple distributors. It takes around 1 to 2 days to reach in any part of Bihar. The cost of transportation depends upon types of vehicle used for transportation and the distance from the warehouse. Transporter charges only one side freight. In last two year the company has experienced 5 % hikes in costs for transportation on contract basis. The blockage of Gandhi setu bridge for 10 wheeler from last two years doesn’t have significant impact on cost because there transportation is fully on contract basis it doesn’t consider any issue of roads or bridges in between contract time period. Transporters are attached just due to high volume. Revision of price in between contract period is done only when there will be 10% change in diesel price. 3.2 Reckitt Benckiser The Reckitt Benckiser brand include French’s Mustard, the antiseptic brand Dettol, the sore throat medicine Strepsils, the hair removal brand Veet, the air freshener Air Wick, Calgon, Clearasil, Cillit bang, Durex, Lysol, Nycil and Vanish. It operates in around 60 countries and its products are sold in almost 200 countries.
  • 30. Page 30 The production location of company are Sitarganj, Mysore, Ambala, Dankuni and Hyderabd. It takes around 3 days to reach products to Patna from production locations. The transportation takes place through 10 wheeler and 12 wheeler and most of them are of third party. The daily inbound delivery to Patna warehouse is about 4 to 6 truck having around 1000 to 1200 cartoons in one truck. As the size of their cartoon is lesser than that of GSK one. Company ware house is located in Patna at Anishabad Shalimar cold storage which has storage capacity of 60000 cartoons and the total space is 45000 sq ft. The average number of products in the warehouse is 400sku and the average product quantity is 50000 cartoons . The stock turnover rate is 7 days. As the company is not having any perishable product for this market so there is no need of cold storage. The average number of order per day is 22 which is quite high. The company is having minimum ordering quantity which is 450 case. There is seasonal influence especially in summer when demand is more and in rainy season the overall demand is less. The distributor of the company is located in every districts of Bihar. The company is using 3 parties logistic for outbound delivery. They have a contract with a lot number of brokers they get vehicles in pre specified rate from them. The daily number of shipment from warehouse is 22 trucks and the vehicles used for transportation is pick up, 407, 6 wheeler and 1109 . The shipment is done by using one vehicle for both one distributor and multiple distributor .This is mainly done to use the capacity of the vehicle It takes around 1 to 2 days to reach in any part of Bihar. The cost of transportation depends upon types of vehicle used for transportation and the distance from the warehouse. Transporter charges only one side freight. The average size or quantity of shipment is 600 cartoons.
  • 31. Page 31 In last two year the company has experienced 10 % hikes in costs for transportation because of blockage of Gandhi setu bridge for 10 wheeler from last two years. The other problem face due to blockage is traffic jam which is always present on bridge. Because of this blockage there is extra burden of delivery. Recently government of Bihar announce that no entry of commercial vehicle during certain daytime so it lead to failure of delivery time. The company is giving different rates for south Bihar and north Bihar. For transportation in north Bihar the company has to pay 4- 5% more than South Bihar. The company use 6 wheeler and 709 for transportation in all part of Bihar. No 10 wheeler used by company for transportation in Bihar. 3.3 Parle Agro Parle Products is an Indian private limited company. It owns the famous biscuit brand Parle-G. As on 2012, it has a 35% dominant share of the Indian biscuits market. Parle products have 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, name Parle name symbolizes quality, nutrition and great taste. With a reach spanning even to the remotest village of India, the company has definitely come a very long way since its inception. The production locations of company are located in maximum state. It takes around 3 days to reach Patna from other states. The transportation takes place through 10 wheeler and 12 wheeler. The daily inbound delivery to Patna warehouse in three trucks is around 1000 to 1200 cartoons in one truck. The company ware house located in Patna at karmali chowk, Patna which has storage capacity of 100000 cartoons and the total space is 20000
  • 32. Page 32 sq ft. The average number of products in the warehouse is 100sku and stock turnover rate is 30 days. For Parle no cold storage is required. The average number of order per day is 10. There is a minimum ordering quantity of 400 cases so that a standard size of load can be generated and proper vehicle can be used. There is no seasonal influence as its products are of everyday use. Minimum one distributor is there in every district which means they need vehicle for whole Bihar. The company is having their own vehicles as well as 3 parties logistic for outbound delivery. The daily number of shipment from warehouse is 10 trucks and the vehicles used for transportation is 709 and 6 wheeler. The shipment is done by using one vehicle for both one distributor an multiple distributor. It takes around 1 day to reach in any part of Bihar. The cost of transportation depends upon types of vehicle used for transportation and the distance from the warehouse. In last two year the company have experienced 7-8% hike in costs for transportation because of blockage of Gandhi Setu Bridge for 10 wheeler from last two years. As in smaller vehicles it is difficult to arrange cartoons properly so less number of cartoons is being accommodated which increases per cartoon cost. The other problem face due to blockage is traffic jam which is always present on bridge. Another reason is due to increase in fare of 6 wheeler due to high demand of 6 wheeler. Recently government of Bihar announced that no entry of commercial vehicle during certain daytime on Mahatma Gandhi Setu so it lead to failure of delivery time. Due to this issue in 2012 they have divided Bihar into three zones and opened two more warehouses in Hajipur and purnia and distributed the load to these entire warehouses according to their reach. So warehouse in Patna has not to worry about north Bihar.
  • 33. Page 33 3.4 Colgate Palmolive The Coalgate Palmolive Company is an American multinational consumer products focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergent, and oral hygiene products (including toothpaste and toothbrush). The production locations of company are Goa, Baddi, Sanand etc. Goods coming from the factory is having a average 7 days of transit time so the warehouse is always having a stock of minimum 10 days. As their product is not bulky rather it is having a high volume so they judge the capacity on the basis of no of cartoons. The transportation takes place through 10 wheeler and daily inbound delivery to Patna warehouse in three truck is around 3200 to 3600 cartoons. The company ware house located in Patna at Anishabad Shalimar cold storage which has storage capacity of 30000 cartoons and the total space is 13000 sq ft. The average number of products in the warehouse is 200sku and stock turnover rate is 15 days. For Coalgate Palmolive no cold storage is required. The average number of order per day is 15. The company has no specific size in average shipment size or quality but there is minimum ordering quantity which is around 1 lakh in terms of value. There is no seasonal influence except cold creams. The distributor of the company is located in every districts of Bihar. The company is using 3 parties logistic for outbound delivery. The daily number of shipment from warehouse is 15 trucks and the vehicles used for transportation is pick up, 407, 6 wheeler and 10 wheeler. In one vehicle there can be goods for one distributor or two distributor It takes around 1 to 2 days to reach in any part of Bihar but in case of Katihar and Purnia it takes 3 days sometimes.
  • 34. Page 34 The cost of transportation depends upon types of vehicle used for transportation and the distance from the warehouse. In last two year the company have experienced 7-8% hike in costs for transportation because of blockage of Gandhi setu bridge for 10 wheeler from last two years. The other problem face due to blockage is traffic jam which is always present on bridge. Recently government of Bihar announce that no entry of commercial vehicle during certain daytime so it lead to failure of delivery time. The company is giving different rates for south Bihar and north Bihar. For transportation in north Bihar the company has to pay 5% more than South Bihar. To minimize the cost in north Bihar Company is doing slightly different from other company in transportation. They load the product on 407, pick up,6 wheeler from the warehouse to cross the bridge and after crossing they unload the product to 10 wheeler. They find that this method is best to minimize cost in north Bihar. 3.5 Hindustan Unilever Ltd Hindustan Unilever Ltd is India’s largest Fast Moving Consumer Goods company with a heritage of over 80 years in India and touches the lives of two out of three Indians. With over 35 brands spanning 20 distict categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetic, tea, coffee, packaged foods, ice creams and water purifiers the company is a part of everyday life of millions of consumers across India. The production location of company is Haridwar, Haldia and Solan. It takes around 4 to 5 days to reach goods to Patna. The transportation takes place through 10 wheeler and 12 wheeler. The daily inbound delivery to Patna warehouse is about 10 trucks .The company ware house is located in Patna at Didarganj which has storage capacity of 1000MT and
  • 35. Page 35 the total space is 52000 sq ft. The average number of products in the warehouse is 200+sku and the average product is 1000 tone. The stock turnover rate is 7 days. The average number of order per day is 10 to 12. The company has no minimum ordering quantity whatever order comes they have to deliver. There is no seasonal influence on overall load because at a time if there is some influence on one product then in another month influence shifts to other products due to wide variety of products the overall load or dispatched load remains almost same. The distributor of the company is located in every districts of Bihar. The company is using third party logistic for outbound delivery. The daily number of shipment from warehouse is 10 to 12 trucks and the vehicles used for transportation is pick up, 407 which is used for transportation in 20km of radius only. For north Bihar either 709 or 6 wheeler is being used and for south Bihar they normally preferred to use 10 wheeler, 6 wheeler and. The shipment is done by using one vehicle for one distributor. It takes around 30 hours to reach in any part of Bihar. The cost of transportation depends upon types of vehicle used for transportation and the distance from the warehouse. Transporter charges only one side freight. There is no standard size of order for delivery. In last two year the company has experienced 7 to 8 % hikes in costs for transportation because of blockage of Gandhi setu bridge for 10 wheeler from last two years. The other problem face due to blockage is traffic jam which is always present on bridge. Because of this blockage demand for six wheeler have increased so there monopoly has started . Recently government of Bihar announce that no entry of commercial vehicle during certain daytime so it lead to failure of delivery time. According to them there is significance difference between transportation cost in north Bihar and south Bihar. In
  • 36. Page 36 south Bihar it cost less because in south Bihar the load is supposed more than 10 tone they can easily used 10 wheeler which cost just 30% more than what cost six wheeler and the quantity that can be transported is almost double. So overall per tonnage cost reduces. 3.6 Nestle India The Nestle India is a vibrant company that’s provides consumers in India with products of global standards and is committed to long term sustainable growth and shareholder satisfaction. Nestle India manufactures products of truly international quality under internationally famous brands name such as Maggi, Milkybar, Kitkat, Bar-one, Milkmaid and Nestea and rest in recent years the company has also introduced products of daily consumption and use such as Nestle milk, Nestle slim milk, Nestle dahi and Nestle jeera raita. The production location of company is Rudrapur and Kolkatta. It takes around 2 to 3 days to reach Patna from these production locations . The transportation takes place through 10 wheeler and 12 wheeler. The daily inbound delivery to Patna warehouse is more than ten trucks and the number of cartoons received daily is around 8000. The company ware house is located in Patna at Didarganj which has storage capacity of 80000 cartoons and the total space is 44000 sq ft. The average number of products in the warehouse is more than 100sku. The stock turnover rate is 3 days. For Nestle India cold storage is required. The average number of order per day is more than 10. The company is not having any minimum ordering quantity for delivery. There is no seasonal influence on any product of Nestle India. The distributor of the company is located in every districts of Bihar. The company is using 3 parties logistic for outbound delivery. The daily number of shipment
  • 37. Page 37 from warehouse is more than 10 trucks and the vehicles used for transportation is pick up, 407, 6 wheeler and 10 wheeler. The shipment is done by using one vehicle for one distributor. It takes around 36 hours to reach in any part of Bihar. The cost of transportation depends upon types of vehicle used for transportation and the distance from the warehouse. Transporter charges only one side freight. There is no standard size of order for delivery. In last two year the company has experienced 10 % hikes in costs for transportation because of blockage of Gandhi setu bridge for 10 wheeler from last two years. The other problem faced due to blockage is traffic jam which is always present on bridge. Because of this blockage demand for six wheeler have increased so there monopoly has started. Recently government of Bihar announce that no entry of commercial vehicle during certain daytime so it lead to failure of delivery time. According to them there is significant difference between transportation cost in north Bihar and south Bihar. In south Bihar it cost less because in south Bihar the load is supposed to be more than 10 tone so, they can easily used 10 wheeler which cost just 30% more than what cost six wheeler and the quantity that can be transported is almost double. So overall per tonnage cost reduces. Another factor is that there is no such demand of six wheeler for transportation of other goods. 3.7 GCMMF The production location of company is in Gujarat and West Bengal. It takes around 3 to 5 days to reach Patna from factory . The transportation takes place through 10 wheeler, 12 wheeler and railway racks. The daily inbound delivery to Patna warehouse in 8 to 10
  • 38. Page 38 trucks from Fatuha rack point. The number of cartoons received depends on the purchase request. The company ware house located in Patna at Anishabad Shalimar cold storage which has total space of 16000sq ft. For Amul cold storage is required as some of the products are perishable. The average number of order per day is 15 to 20. The company is having minimum ordering quantity which is 2 tones for local distributors. There is seasonal influence especially in summer due to increase in sale of ice cream. The distributor of the company is located in every districts of Bihar. The company is using own logistic for outbound delivery. The daily number of shipment from warehouse is 15 to 20 trucks and the vehicles used for transportation is pick up, 407, 608 and 709. The shipment is done by using one vehicle for both one distributor and multiple distributors depends upon the order. It takes around 24 hours to reach in any part of Bihar except Purnia and Sharsha. The cost of transportation depends upon types of vehicle used for transportation and the distance from the warehouse. Transporter charges only one side freight but now they started charging more. The average size or quantity of shipment is 5 tones. In last two year the company has experienced 8 to10 % hikes in costs for transportation because of blockage of Gandhi Setu Bridge for 10 wheeler from last two years. The other problem face due to blockage is traffic jam which is always present on bridge. Recently government of Bihar announce that no entry of commercial vehicle during certain daytime so it lead to failure of delivery time. The company is giving same rates for south Bihar and north Bihar. The other problem is that six wheeler is not always available and they also started charging more for transportation.
  • 39. Page 39 Chapter-4 Problem In Transportation 4.1 Problem faced by C&F agent  Difference of cost in North Bihar and south Bihar- Earlier the transportation cost for north Bihar and south was same but due to blockage of bridge for 10 wheeler and above the transportation cost across north Bihar has increased in last two year. Many company pays additional 5% for transportation in north Bihar. In south Bihar it cost less because in south Bihar the load is supposed to be more than 10 tone and they can easily use 10 wheeler which cost just 30% more than what cost six wheeler and the quantity that can be transported is almost double. So the overall per tonnage cost reduces but in case of north Bihar they have no other option they have to transport by six or below wheeler so the transportation cost increased in north Bihar.  Demand of six Wheeler has increased- Because of blockage of bridge for 10 wheeler the demand of 6 wheeler has increased and as a result there is shortage of 6 wheeler. Actually now commodities, coal sand and other products which were earlier transported by multiaxle vehicles are now transported by six wheelers. Many company have to transport there product by other vehicles like 1109,407 etc because of shortage of six wheeler which results in increase of transportation cost. The other problem is that six wheeler are charging more because of their monopoly in the market which results in increase in cost around 15 to 20%. As
  • 40. Page 40 there is no option ultimately the C&F have to pay more to the six wheeler which also result in increase of transportation cost.  Traffic Jam- It is another factor which results in increase in transportation cost. As there is repairing work going on Mahatma Gandhi setu bridge so daily there is long traffic jam .Because of this traffic jam the vehicles which is supposed to reach within 24 any part of Bihar actually take more than 30 hours to reach any part of Bihar which affect the transportation cost and lead to failure of delivery time. Recently the news came out that six wheeler are not allowed to cross the bridge during certain timing in daytime which further increased the problem for C&F.  Problem with smaller vehicles-After blockage of big vehicles the demand of smaller vehicles has increased but the problem with the smaller vehicles is that it is difficult to arrange cartoons properly and so less number of cartoon is being accommodated due to less capacity of the vehicles and which result in increased per cartoon cost. Some product have less weight but volume is more so they require more space as a results arrangement of this type of product in smaller vehicles is difficult the quantity is reduced and hence cost per cartoon increase.
  • 41. Page 41 4.2 Problems for transporters involved in inward logistics  No business opportunity – The business opportunity is almost nil in South Bihar only at the time of seasonal crops the transporter get something otherwise they have to move either to Jharkhand or some other place for getting some return goods. There is some business opportunity in north Bihar but the problem is that the ten wheeler are not allowed to cross Gandhi Setu bridge so ultimately they have to go far places like Durgapur and Jamshedpur or they are forced to return from Bihar with empty vehicles. In Bihar there is no such industry whose goods can be transported to other state. In some of the month of season in which there is harvest they used to get fodder and even rice and wheat as return goods. In other state there is some industrial belt or area in which they get something for transportation. So because of this problem many of transporters don’t want to come Bihar.  Condition of Bridge and roads- The trucks which enter in Bihar has to face a lot of problem related to bridge and roads. For example after entry to Bihar from Mohania the road is state highway and has no lane division .The condition of roads is also not so good. A lot of traffic is always present. So, to cross 150km it takes 10-12 hour and more than that. In the same there is a problem for high load in Koyelbar Bridge. The height of Koyelbar bridge is less so truck cannot carry good with more height. Because of this problem the transporter have to do loading and unloading to cross the bridge which increases the cost.
  • 42. Page 42  Unavailability of public provided infrastructure- In Bihar there is very less public provided infrastructure because of this parking has became a big issue in Bihar and in many places due to no parking space the trucks has to parked beside the road which sometimes leads to traffic jam . Sometimes authority imposes fine on transporter for parking.  Unwanted interference by policemen- Policeman disturbs a lot to outsider transporter. They charge money illegally and if transporter doesn’t give money they don’t allow them to move further. Because of the involvement of policemen sometime it leads to traffic jam. Apart from policemen RTO also charges illegally to make permit for the transporter.  Long detention period- It happens when there is no space to store goods in warehouse and as results the trucks have to wait to unload the goods in warehouse. Sometimes it takes more than five days to unload the goods in warehouse. Although a fixed detention amount given to transporter but it not enough as more time is losses because of detention. In Patna none of the warehouse has been made with proper planning due to which what happens is loading space got stuck if a multiaxle vehicle gets into the loading area and blocks the way for other loading area.
  • 43. Page 43 4.3 Problem faced by transporter (Intra distribution)  Condition of roads-In many parts of Bihar the roads are single lane so it difficult to drive load vehicles and the road are not so widened. Availability of four lane roads is less in Bihar. As the roads are not so widened traffic jam occurs in many part of Bihar. In some of routes the bridges are too narrow and not properly built so, chance of accidents are more. If we take example of the roads from Varanasi to Patna the condition of is so bad that it takes additional three to four hours to reach Patna. The mileage of vehicles is also reduced and as results the transportation cost increased and these additional costs has to bear by the transporter.  No entry of vehicles- As the Bihar government has recently announced that there is no entry for commercial vehicles during 11am to 4 pm on Gandhi setu bridge. It created another problem because any warehouse opens at 9 or 9:30 and trucks gets loaded in 3-4 hours. So, then it has to wait another 2-3 hours then only it can cross the river through bridge. It leads to failure of delivery time.  Increase in demand of six wheeler- The transporter is having 10 wheeler but they cannot be used for north Bihar because of blockage of 10 wheeler on Gandhi setu bridge. So, they are now used for sand procurement and get less freight. Now for transportation in north Bihar every party now demands six wheeler. So, it is being difficult to fulfill the needs of vehicles of a given party at stipulated time.
  • 44. Page 44  Contract- The company signs contract with the transporter for transportation which is based on per ton or kilometer .Company are not liable to pay anything extra for traffic jam or condition of roads and if the cost increases the transporter has to bear the cost . For example load of Muzzafarpur and Bettiah is always high and in place of one vehicles now transporter are using two vehicles so the cost increases and also timing increased but company are not going to listen these things ultimately the transporter has to bear the loss . The change in contract takes place only when there is more than 10 percent increase or decrease in diesel price.  Toll charges- New tolls have been created in different route which also increased the cost of transportation. For example earlier there is no toll between fathua and Patna but recently there is new toll in Didarganj because of this toll the transporter have to pay around 600 or more for transportation. Apart from toll charge the transporter has to pay taxes to nagar nigam which has been increased in several locations in last few years.  Parking Problem –The government has not provided any infrastructure for parking in most of the places due to which transporters are forced to park their trucks beside the road which sometimes leads to traffic jam.
  • 45. Page 45 Chapter- 5 Factors of Transportation 5.1 Introduction Prime focus in this entire project is on transportation and there are certain variables that are having significant impact on the cost and time of transportation. So, to know those variables a trial interview has been done with transporters. Focused discussion between the interns of GCMMF Patna Depot also gave some variables. A questionnaire of 10 items covering those 10 variables was prepared and got it filled by the transporters. A convenience sample of 42 respondents were taken. All the variables were to be scored from 1 to 5 on the basis of their importance. So to find the most impactful variables we have done factor analysis on our secondary data. Reliability test was done to test the reliability of the compiled data. Factor analysis was used to come to a conclusive result. 5.2 Reliability Analysis This measures the overall consistency of the items that are used to define a scale. As a result, we have given sample size, number of items and reliability coefficients. In statistics, Cronbach's (alpha) is a coefficient of internal consistency. It is commonly used as an estimate of the reliability of a psychometric test for a sample.
  • 46. Page 46 Table 5.1 Alpha table Cronbach's alpha Internal consistency α ≥ 0.9 Excellent (High-Stakes testing) 0.7 ≤ α < 0.9 Good (Low-Stakes testing) 0.6 ≤ α < 0.7 Acceptable 0.5 ≤ α < 0.6 Poor α < 0.5 Unacceptable 5.1.1 Result Table 5.2 Case Processing Summary N % Cases Valid 42 100.0 Excludeda 0 .0 Total 42 100.0 a. Listwise deletion based on all variables in the procedure. Table 5.3 Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .646 .588 10
  • 47. Page 47 5.1.2Interpretation The value of Cronbach's alpha comes out to .646, which is greater than the acceptable benchmark of 0.6. So the data is reliable enough to be used for further processing and analysis. 5.2 Factor Analysis Factor Analysis is done to identify and club those important factors which drive to the maximum possible variance. Factor analysis is a general term denoting a class of procedures primarily used for data reduction and summarization. It is an interdependent technique in that an entire set of interdependent relationships are examined without making the distinction between dependent and independent variables. Factor analysis is used in the following circumstances:  To identify underlying dimensions or factors that explain the correlations among a set of variables.  To identify a smaller set of salient variables from a larger set to be used in subsequent multivariate analysis. Factor Analysis was done to identify the most important factors influencing the cost and time of transportation. . 5.2.1 Results and Interpretations Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The Kaiser-Meyer-Olkin (KMO) measures of sampling adequacy is an index used to examine the appropriateness of factor analysis. High values (between 0.6 and 1.0)
  • 48. Page 48 indicate factor analysis is appropriate in terms of adequacy of number of samples. Values below 0.6 imply that factor analysis may not be appropriate. The KMO measure of this test is 0.679 which indicates the factor analysis is appropriate. Bartlett's test of Sphericity Bartlett's test of sphericity is a statistical test used to examine the hypothesis that the variables are uncorrelated in the population. In other words, the population correlation matrix is an identity matrix; each variable correlates perfectly with itself (r = 1) but has no correlation with the other variables (r = 0). The Significance level of 0.000(which is less than 0.05) allows to reject the null hypothesis of no correlation between the variables. Table 5.4 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .545 Bartlett's Testof Sphericity Approx. Chi-Square 110.982 Df 45 Sig. .000 Eigenvalue. The eigenvalue represents the total variance explained by each factor.Eigen value >1 means components are significant.
  • 49. Page 49 Table 5.5 Total Variance Explained Compon ent Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulativ e % Total % of Variance Cumulativ e % Total % of Variance Cumulativ e % 1 2.620 26.205 26.205 2.620 26.205 26.205 1.949 19.492 19.492 2 1.993 19.929 46.134 1.993 19.929 46.134 1.915 19.147 38.639 3 1.375 13.751 59.885 1.375 13.751 59.885 1.774 17.742 56.381 4 1.002 10.024 69.909 1.002 10.024 69.909 1.353 13.528 69.909 5 .893 8.931 78.840 6 .734 7.342 86.182 7 .531 5.311 91.493 8 .362 3.619 95.112 9 .319 3.190 98.302 10 .170 1.698 100.000 Extraction Method: Principal Component Analysis. These four components are able to explain 69% of the total variation in cost and time of transportation. This is a pretty good bargain , because we are able to economize on the number of variables (from 10 we have reduced them to 3 underlying factors), while we lost only 30 per cent of the information content. Scree plot. A scree plot is a plot of the Eigen values against the number of factors in order of extraction.
  • 50. Page 50 Chart 5.1 Scree plot Table 5.6 Rotated Component matrix Component 1 2 3 4 FUELPRICE -.455 .431 .508 -.075 DISTANCE .481 .380 -.118 .488 WEIGHT .847 .150 -.029 .291 ROUTE -.070 .468 .379 .420 VALUEOFGOODS .011 -.039 -.006 .867 TOLLCHARGE .642 .010 .069 -.217 TRAFFICJAM .230 .849 -.190 .129 CONDITIONOFROADS -.007 .076 .872 -.054 PPI .569 -.060 .670 .147 RSPR -.022 .782 .329 -.091
  • 51. Page 51 Extraction Method: Principal ComponentAnalysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 17 iterations. By taking .7 as the threshold loading factor these variables can be classified into these four components as follows- Component 1 consist of Weight(.847) Component 2 consist of Traffic Jam & Road Safety & Public Restrictions Component 3 consist of Condition Of Roads Component 4 consist of value of goods As the Eigen value of component 1 is highest ( 2.620) so this the most impactful factor which consist of weight. This means that weight is the most impactful variable followed by Traffic jam & Road safety and security restrictions . From interviews also it was found that main delay in timing is due to Traffic jam and safety restrictions in the city due to which trucks have to wait for whole day and that increases the delivery time and also cost for transportation.
  • 52. Page 52 Chapter- 6 6.1 Data Analysis In this part after analyzing the current situation of transportation of goods to north Bihar and the problems associated with it several analysis like sales analysis, route scheduling , warehouse location has been done for GCMMF. Sales analysis - One year sales data except for ice-cream for Bihar has been taken from the secondary sources. Then the total sales volume has been divided into the sales of north Bihar and south Bihar. In this north Bihar and south Bihar has been separated on the basis of the Holy river Ganges. As the major portion of Bhagalpur district is in south side of river so Bhagalpur has been considered in south Bihar. It has been assumed that the last year sales volume will be the demand for the next year. Based on that location wise demand has been generated and a report showing north Bihar and south Bihar sales data has been made. Ice cream sales has not been considered in the analysis as the mode of transportation for ice cream is totally different. It is being transported through refrigerated vans (mainly Pickup vans). Ice Cream being a perishable good, transportation plays and important part in the whole logistic chain of the product. Delays and not meeting the pre-requisite conditions for the Ice cream storage can be detrimental to the health of the business. In total 3 vehicles are being currently used of 60, 80 and 120 crates in which former is solely responsible for transportation in City region and later two are for rural regions of Bihar.
  • 53. Page 53 After this according to the current freight rate given by GCMMF to transporters the total freight paid per distributor wise has been calculated for north Bihar and South Bihar. Table 6.1 North Bihar Location Distance Sales Qty Freight rate(MT) Freight paid Begusarai 130 84.63 1073 90807.99 Betiah 260 41.406 1951.75 80814.1605 Chakia 175 4.61 1221 5628.81 Chapra 150 147.749 1646.5 243268.7285 Dalsinghsarai 140 15.943 1193.25 19023.98475 Darbhanga 160 340.526 1467 499551.642 Gopalganj 180 52.23 1572.5 82131.675 Hajipur 30 158.195 476.38 75360.9341 Supaul 290 19.6 2386.5 46775.4 Siwan 150 302.415 1646.5 497926.2975 Sitamarhi 140 91.52 1304.25 119364.96 Saharsa 290 134.689 2386.5 321435.2985 Samastipur 140 67.256 1193.25 80253.222 Raxual 210 58.853 1785.25 105067.3183 Purnia 300 101.013 1924 194349.012 Narkatiaganj 260 98.262 1951.75 191782.8585 Muzaffapur 80 623.448 732.6 456738.0048
  • 54. Page 54 Motihari 175 204.112 1221 249220.752 Madhbani 180 21.87 1467 32083.29 Kishanganj 375 54.147 2025.75 109688.2853 Khagaria 160 2.42 1350.5 3268.21 Katihar 305 600.735 2053.5 1233609.323 Jhanjharpur 180 44.138 1489.25 65732.5165 Madhepura 290 10.35 2386.5 24700.275 Total 3280.117 4828582.948 Table 6.2 South Bihar Location Distance Sales Qty Freight rate(MT) Freight paid Bhabhua 175 2.43 1174.75 2854.6425 Bhagalpur 255 320.555 1850 593026.75 Bihar sharif 120 195.853 1063.75 208338.6288 Bodh Gaya 150 104.483 1609.5 168165.3885 Buxar 170 66.14 1295 85651.3 Danapur 60.56 Dehri on sone 165 17.33 1174.5 20354.085 Danapur Cant* 2.42 Gaya 110 378.184 860.25 325332.786 Jamalpur 215 69.412 1443 100161.516 Jammui 200 36.66 1461.5 53578.59
  • 55. Page 55 Jehanabad 80 42.263 741.85 31352.80655 Sherghati 150 18.39 1609.5 29598.705 Sasaram 165 84.87 1174.5 99679.815 Patna* 1422.16 Nawada 112 252.049 897.25 226150.9653 Naugachia 255 20.65 1424.5 29415.925 Munger 215 93.4 1443 134776.2 Masuarhi 80 25.104 741.85 18623.4024 Lakhisarai 160 42.83 1350.5 57841.915 Jhaja 200 51.37 1461.5 75077.255 Rajgir 100 33.12 1036 34312.32 *As these two locations comes in local so these have been left out. While interviewing transporters of intra distribution a rate list has been prepared by asking rates for locations for different types of vehicles. These rates have been collected from two origin locations i.e. Transport Nagar Patna, Hazipur Industrial Area.  After analyzing all the problems for the transportation in north Bihar from all the C & F agents and transporters and also the political and developmental scenario it has been suggested that the company GCMMF should have a different warehouse for North Bihar which will be located in north Bihar.  After concluding with a concept of new warehouse next task was to find the location of the new warehouse and to check the benefit and cost associated with it. So for this task after a lot of analysis it has been concluded that Hajipur will be
  • 56. Page 56 the best location for new warehouse. For every decision there must be a reason in the same for choosing Hajipur as the warehouse location there are several reasons and those reasons are- o It is located on other side of Gandhi Setu Bridge. So from hajipur we can send goods in 10 wheeler in any part of north Bihar as the it is connected with most of the places with national highway. o Most of Amul products comes through railway racks and there is a railway station Sarai located near hajipur which can be used to unloads the goods from railway racks. o The 10 wheeler trucks can directly come to Hajipur from Gorakhpur via Gopalganj . So there is no need to cross Gandhi setu bridge o Business opportunity is more for 10 wheeler in north Bihar. o No need to open new office in Hajipur because it is within 25km so it can be supervised and monitored from Patna. o Transporter has to not worry about traffic jam on Gandhi Setu Bridge. o The rent charges of ware house in Patna and Hajipur is same. So company don’t have to pay more in Hajipur. In the next phase after analyzing the location the benefit and cost has been calculated. After interviewing some of the warehouse owners and also staffs it has been found that the rent for warehouse in Hajipur is as follows-  Dry- Rs 10-12/Sq ft  Frozen- 17 -18/ sq ft
  • 57. Page 57 As the rent for warehouse in Patna is also in the same range so this rate can be accepted. In ward delivery of Goods in GCMMF is done through railway rack from last 2 years, this is actually due to increase in freight rate. The reason for this has been explained in the earlier parts of the project. In Patna warehouse goods comes from fatuha rack point. transportation for this has been outsourced to a company and fatuha is about 28 km from Anishabad warehouse. In the same way that company can be used in hajipur as the nearby rack point is sarai which is 34 km from Hajipur. so for this company will not have to pay extra. Another major factor is the railway freight charge but from the secondary data sources taken from official railway website it has been found that the dairy products came in to rate class category-50. for rate class category 50 when freight rate according to distance has been analyzed following things has been found -  Distance of Sarai from Anand- 1623km(shortest Path)  Distance of Fatuha from Anand- 1592km(shortest path)  Freight charge for rate class 50 from 1501km to 1625 km- Rs 2189/MT  So it has been found that the there will no difference in freight charges
  • 58. Page 58 Table 6.3 Other Costs WAREHOUSE COST AREA RATE(per sq ft) CHARGE/ MONTH ANNUAL COST 7000 10.5 73500 882000 1000 17 17000 204000 OVERHEADS SALARY NO OF EMPLOY MONTHLY COST ANNUAL COST 10000 2 20000 240000 ELECTRICITY BILL 4000 48000 WAGES NO OF WORKERS 5000 4 20000 240000 MISC 50000 Furnitures Value Life per year cost 100000 5 20000 20000
  • 59. Page 59  Total cost =1,684,000 6.2 Calculation for benefits In earlier part as the cost associated with the new warehouse has been calculated so in this section the benefits associated with it has been calculated. For calculation of benefits first of all route scheduling has been done for north Bihar. Route Scheduling- Objective:- The objective of route scheduling is to minimize the overall cost of transportation. Route scheduling has been done keeping in view of following factors-  Sales volume  Road connectivity  Timing of delivery  Capacity of vehicle On the basis of these factors route scheduling has been done and with the help of collected freight rate list the cost associated with this network has been calculated.  Total cost in new network for north Bihar = Rs 2,950,380  Total cost in existing network for north Bihar = Rs 4744323  Difference = Rs 1,793,943(38%) In new routing total of Rs 1,793,943 is being saved from transportation but there are some other costs associated with it which amounts to Rs1,684,000. So net savings is
  • 60. Page 60 Rs109943 which is around 2 percent of the existing total cost. As the profit is coming to be positive so the decision for new warehouse is financially viable. Figure 6.1 Cost calculation & Route scheduling
  • 61. Page 61 Chapter 7 7.1 Conclusion At the present situation it was found that all the FMCG companies are facing problem of transportation. on an average they have experienced a hike of 10% in freight charges in last 2 years. As the load is not so high in all locations so they generally use 6 and below wheelers vehicles for intra distribution. most of the companies are having single warehouse located in Patna for distribution in the market of Bihar. Most of the C& F agents are using third party logistics and they mostly depend on contractors or commission agents for vehicles. Due to blockage even if there is a good amount of load in some places of north Bihar they cannot use 10 wheelers. There are various problems from thee view C & f agents, transporters of intra distribution and transporters in involved in inward logistics. Traffic jam and Road safety and security restrictions are one of the important factors that is impacts cost and time of transportation so, there is a need to plan the route of distribution keeping in mind of these two factors so that cost and time can be saved. With the help of new warehouse locations and new route scheduling GCMMF is able to save 2% of its existing cost of transportation in North Bihar which is a good bargain as the company always tries to follow a low cost model. From this even the problem of late delivery will be solved to a great extent.
  • 62. Page 62 7.2 Recommendations  FMCG companies in Bihar can have demand division into north and south bihar and have warehouse for both to avoid blockage and traffic jam problems.  Company GCMMF can open their warehouse as it is financially viable and it will remove the problem of late delivery to a large extent.  A new route scheduling for north Bihar which has been prescribed in the project can be used.  FMCG companies should advice their distributors to have their warehouse beside of highways so that trucks can go easily and the restriction problems can be solved.  Transporters coming to Patna should have contacts with local brokers to have return goods at the earliest possible time. 7.3 Limitations  Assumptions: This research assumes that sales data for last year will be the demand for next year.  Time constraint: Due to lesser time, many C & F in different areas were not covered which restricts this research to certain areas only.  Supply Chain Model: Due to unavailability of secondary data .
  • 63. Page 63 References  Dr G Karmakar and Dr. G. D. Banerjee (2006), 'opportunities and challenges in the Indian dairy Industry' Issue 9, NABARD  Nimah Mazaheri, Edouard Al-dahdah, Sandeep Poundrik & Soujanya Chodavarapu (2013), ' leadership and institutional change in the public provision of transportation infrastructure: an analysis of india’s bihar' vol. 49, no. 1, 19–35, rutledge taylor and francis group  Harish chawla (2007), ' Amul India: A Social Development Enterprise'Asian case research journal, vol. 11, issue 2, 293–326  Rajendra Nargundkar (2014), 'Marketing Research - Text and Cases'
  • 64. Page 64 Appendix 1 Interview Guide for C&F Dear respondent, we students of Chandragupt Institute of Management Patna are conducting a small survey on existing logistic condition in Bihar. The information given by you will be kept strictly confidential and will be used for academic purposes only. General information  Name of company  Name of company (warehouse)  Location of warehouse  Production location of your company  Distributor locations in Bihar Warehouse design  Total space  Floor storage  Shelf storage  Total Capacity (MT)  Cold storage (Y/N)
  • 65. Page 65 Stock in warehouse  Average number of products  Average product weight  Stock turnover rate Inbound delivery(daily) 1. Number of trucks 2. Types of truck 3. No of cartoons received 4. Average value 5. Average weight 6. Average lead time Order handling  Average numbers of order per day  Standard size of order  Any minimum ordering quantity  Seasonal influence on order(Y/N). If yes specify Outbound Delivery (daily)
  • 66. Page 66  Mode of transportation o company owned o 3PL  Number of shipment  Type of vehicles  Average shipment size/quantity  Shipment in one vehicle o One distributor o Multiple distributor  Normal lead time Cost  Basis of cost of transportation o Value of goods o Weight of goods o Number of vehicles o Distance from warehouse  Does transporter charges cost for both way and only one way?
  • 67. Page 67  Blockage on bridges is having impact on logistics(Y/N)? If yes then please specify the problem?  Cost increase in transportation in last two years-  Is there difference in cost for north Bihar or south Bihar(Y/N)? If yes what is the percentage difference?
  • 68. Page 68 Interview Guide for transporter (Intra distribution) Dear respondent, we students of Chandragupt Institute of Management Patna are conducting a small survey on existing logistic condition in Bihar. The information given by you will be kept strictly confidential and will be used for academic purposes only. o Name of company  Location  Type o Company owned o 3PL  Size of fleet  Are you working for FMCG companies (Y/N)? If yes name them?  Does your company involved in intra distribution in Bihar?Y/N  Major route currently being used for intra distribution in Bihar?  Average toll tax paid in different route?  Major problems in different route?  Are you charging both side freight?  Basic of charging freight? o Volume based o Distance based o Value based o Vehicle type based
  • 69. Page 69  What is the impact of blockage of big vehicles on two major bridges of Bihar on your business?  Percentage of cost increase in transportation in last two year?  Changes in the public infrastructure in last 2 years?  Average lead time?  Average freight charge for north Bihar and South Bihar North charge South charge Less than 100 km Less than 100km Less than 150km Less than 150km Less than 200km Less than 200km
  • 70. Page 70 Interview Guide for transporter inward Dear respondent, we students of Chandragupt Institute of Management Patna are conducting a small survey on existing logistic condition in Bihar. The information given by you will be kept strictly confidential and will be used for academic purposes only.  Name of company  Location  Type o Company owned o 3PL  Size of fleet  Are you working for FMCG companies (Y/N)? If yes name them?  Does your company involved in inward logistic to Patna from other state? Y/N  Major route currently being used to reach warehouse in Patna?  Average toll tax paid in different route?  Major problems in different route?  Are you charging bothside freight?  Basic of charging freight?
  • 71. Page 71 o Volume based o Distance based o Value based o Vehicle type based  What are the business opportunities available in Bihar for logistics? How it is different from other states?
  • 72. Page 72 Questionnaire for Factors of transportation Dear respondent, we students of Chandragupt Institute of Management Patna are conducting a small survey on existing logistic condition in Bihar. The information given by you will be kept strictly confidential and will be used for academic purposes only. Name of the company Name of the respondent Please rate these factors impacting logistics on the basis of their impact on cost and time from 1= very low impact 2 =low impact 3=moderate impact 4=high impact 5= very high impact Factors:-  Fuel price  Distance  Weight / volume  Route(bridges)
  • 73. Page 73  Value of goods  Toll charge  Traffic/congestion  Condition of road  Publicly provided infrastructure  Road Safety policy and restriction
  • 74. Page 74 Annexure 2 S no Place Distance Type of truck Capacity in tonnes Charge( from patna) Freight per mt Charge(from hajipur) Freight per mt 1 Muzzafarpur 6 wheeler 9 5500 611 5500 611 10 wheeler 15 7150 477 6150 410 2 Samastipur 6 wheeler 9 6000 667 6000 667 1109 7 4500 10 wheeler 15 7800 520 6800 453 3 Araria 6 wheeler 9 11000 1222 11000 1222 10 wheeler 15 14300 953 13300 887 4 Begusarai 6 wheeler 9 6500 722 6500 722 1109 7 5000 10 wheeler 15 8450 563 7450 497 5 Bhagalpur 6 wheeler 9 10500 1167 10500 1167 10 wheeler 15 13650 910 12650 843 6 Arrah 6 wheeler 9 4000 444 4000 444
  • 75. Page 75 10 wheeler 15 5200 347 4200 280 7 Khagaria 6 wheeler 9 6000 667 6000 667 10 wheeler 15 7800 520 6800 453 8 Kisanganj 6 wheeler 9 14000 1556 14000 1556 1109 7 12200 1743 12200 1743 10 wheeler 15 18200 1213 17200 1147 9 Gopalganj 6 wheeler 9 7000 778 7000 778 10 wheeler 15 9100 607 8100 540 10 Purnia 6 wheeler 9 14000 1556 14000 1556 1109 7 12200 1743 12200 1743 10 wheeler 15 18200 1213 17200 1147 11 Jehanabad 6 wheeler 9 4000 444 4000 444 10 wheeler 15 5200 347 4200 280 12 Darbhanga 6 wheeler 9 7500 833 7500 833 10 15 9750 650 8750 583
  • 76. Page 76 wheeler 13 Gaya 6 wheeler 9 5000 556 5000 556 10 wheeler 15 6500 433 5500 367 14 Motihari 6 wheeler 9 8000 889 8000 889 10 wheeler 15 10400 693 9400 627 15 Bhagalpur 6 wheeler 9 10500 1167 10500 1167 10 wheeler 15 14000 933 13000 867 16 Saharsa 6 wheeler 9 11000 1222 11000 1222 1109 7 9300 1329 9300 1329 10 wheeler 15 14300 953 13300 887 17 Madhepura 6 wheeler 9 11000 1222 11000 1222 1109 7 9300 1329 9300 1329 10 wheeler 15 14300 953 13300 887 18 Supaul 6 wheeler 9 11000 1222 11000 1222 1109 7 9300 1329 9300 1329 10 15 14300 953 13300 887
  • 77. Page 77 wheeler 19 Purnia 6 wheeler 9 13000 1444 13000 1444 10 wheeler 15 16900 1127 15900 1060 20 Katihar 6 wheeler 9 14000 1556 14000 1556 10 wheeler 15 18200 1213 17200 1147 21 Madhubani 6 wheeler 9 9500 1056 9500 1056 10 wheeler 15 12350 823 11350 757 22 Samastipur 6 wheeler 9 6000 667 6000 667 10 wheeler 15 7800 520 6800 453 23 Arrah 6 wheeler 9 6000 667 6000 667 10 wheeler 15 7800 520 6800 453 24 Biharsarif(nalanda) 6 wheeler 9 6000 667 6000 667 10 wheeler 15 7800 520 6800 453 25 Arwal 6 9 4500 500 4500 500
  • 78. Page 78 wheeler 10 wheeler 15 5850 390 4850 323 26 Kaimur(bhabhua) 6 wheeler 9 11000 1222 11000 1222 10 wheeler 15 14300 953 13300 887 27 Lakhisarai 6 wheeler 9 6500 722 6500 722 10 wheeler 15 8450 563 7450 497 28 Jamui 6 wheeler 9 8000 889 8000 889 10 wheeler 15 10400 693 9400 627 29 Nawada 6 wheeler 9 6500 722 6500 722 10 wheeler 15 8450 563 7450 497 30 Motihari 6 wheeler 9 6500 722 6500 722 10 wheeler 15 8450 563 7450 497 31 Betiah 6 wheeler 9 8000 889 8000 889 10 wheeler 15 10400 693 9400 627
  • 79. Page 79 32 Buxar 6 wheeler 9 5000 556 5000 556 10 wheeler 15 6500 433 5500 367 33 Banka 6 wheeler 9 11000 1222 11000 1222 10 wheeler 15 14300 953 13300 887 34 Munger 6 wheeler 9 10000 1111 10000 1111 10 wheeler 15 13000 867 12000 800 35 Rohtas 6 wheeler 9 9000 1000 9000 1000 10 wheeler 15 11700 780 10700 713 36 Hajipur 6 wheeler 9 3500 389 3500 389 10 wheeler 15 4550 303 3550 237 37 Sheikhpura 6 wheeler 9 6000 667 6000 667 10 wheeler 15 7800 520 6800 453 38 Shivhar 6 wheeler 9 7000 778 7000 778 10 15 9100 607 8100 540
  • 80. Page 80 wheeler 39 Saran 6 wheeler 9 4000 444 4000 444 1109 7 3000 429 3000 429 10 wheeler 15 5200 347 4200 280 40 Siwan 6 wheeler 9 5000 556 5000 556 10 wheeler 15 6500 433 5500 367 41 Sitamarhi 6 wheeler 9 7200 800 7200 800 709 5 5000 1000 5000 1000 10 wheeler 15 9360 624 8360 557 42 Narkatiaganj 6 wheeler 9 9500 1056 9500 1056 1109 7 8100 1157 8100 1157
  • 81. Page 81 Appendix 3 NORTH BIHAR Location Distributor Name Sales in MT Begusarai Nirmal Dist 50.98 Need 0.86 Swastic Agro Agency 32.79 Total 84.63 Betiah Bhagwati Agency 34.426 Sai Enterprise 4.98 Total 41.406 Chakia Deepak Enterprise 4.61 Chapra Chorasia Trading 53.986 M Lal D Narayan 59.792 R K Mission 38.97 Total 147.749 Dalsinghsarai Shree Hanuman Traders 15.943 Darbhanga Tarjeswar Trading 94.392 Durga Agency 222.928 Rani Sati Sales 23.206 Total 340.526 Gopalganj Narayan Traders 22.16 Shiv Shakti Traders Co 30.07
  • 82. Page 82 Total 52.23 Hajipur A.R Enterprise 33.445 Praveen Enterprise 111.33 Siddwani Traders 13.42 Total 158.195 Supaul Chunilal Rameswarlal 16.56 Mohanka 3.04 Total 19.6 Siwan Chorasia Trading 156.07 J.P Enerprise 146.345 Total 302.415 Sitamarhi Bihar Agency 55.91 Misra Trading 35.61 Total 91.52 Saharsa H B Enerprise 74.196 Rahul Trade Concern 56.833 Vaishali Enterprise 3.66 Total 134.689 Samastipur A K Traders 19.73 Shee Krishana Enterprise 4.61 Shayam Trading 42.916 Total 67.256
  • 83. Page 83 Raxual Sikaria Brother 58.853 Purnia Laxmi Enterprise 1.96 Pokhanna Pareswarlal 96.403 Shivheera Trading 2.65 Total 101.013 Narkatiaganj Doodhwala Milk Plaza 78.05 Ganpati Traders 20.212 Total 98.262 Muzaffapur Jeewan Dhara Agency 190.39 B C Sales 163.972 Mansi Traders 175.046 Shakarambari Tea Company 94.04 Total 623.448 Motihari Amirlal Vishnu Prasad 128.23 Jagdave Traders 75.087 Sakshi Traders 0.795 Total 204.112 Madhbani Anshumann Traders 21.87 Kishanganj 139 BN B&F 17.114 Jishan Traders Co 37.033 Total 54.147
  • 84. Page 84 Khagaria Jyoti Traders Co 2.42 Katihar Reckha Traders 479 Saraf Brother Agency 121.735 Total 600.735 Jhanjharpur Sanjay Kumar Satish Kumar 44.138 SOUTH BIHAR Location Distributor Name Sales In MT Bhabhua Agarwal Traders 2.43 Bhagalpur Asoka Enterprise 17.94 Commercial Enterprise 146.154 Lalji Saha Visnu 156.465 Total 320.555 Bihar Sharif Kiran Brother 52.31 Trade Linkar 143.54 Total 195.853 Bodh Gaya Surya Agency 104.483 Buxar B.D Agency 5.946 Buxar Ttading Co 54.93 Sonali Enterprise 5.22 Total 66.14
  • 85. Page 85 Danapur Shakti Distrubutor 57.82 Shree Shakhubhir Enterprise 2.74 Total 60.56 Dehri On Sone Ashoka Agency 13.99 Rahul Enterprise 3.33 Total 17.33 Danapur Cant Asc Cant 2.42 Gaya Aditi Enterprise 22.49 Anand Enterprise 59.409 Gaya Electronic 34.44 Jai Durga Bhandar 22.68 M/S Pista 39.846 Srk Traders 56.443 Smurti Traders 64.19 Vishnu Corp 76.826 Gaya Asc Cannt 1.86 Total 378.184 Jamalpur Gopal Store 21.89 Sunil Traders 47.522 Total 69.412 Jammui Ganesh Store 36.66 Jehanabad Kiran Enterprise 42.243
  • 86. Page 86 Vaishaivani Sales 0.02 Total 42.263 Sherghati Gaya Prasad & Sons 18.39 Sasaram Anupurna Traders 63.87 Nitya Enterprise 21 Total 84.87 Patna Anand Enterprise 80.15 Kasera&Co 134.683 Anand Sales Co 90.07 Kawshalya Enterprise 94.097 Khanna Distrubutor 135.863 A.N Enterprise 150.35 Miitunjay Enterprise 0.19 Ram Traders 67.33 Shrimaaa Enterprise 126.83 Maa Sheila Enerprise 113.775 Narayan Enterprise 21.06 Rajshree 134.825 R.K Mission 0.09 Rajan Tradrs 124.67 Vikash Enterprise 113.05 Vriudavan 35.127
  • 87. Page 87 Total 1422.16 Nawada Lalchand Rameshwarla 252.049 Naugachia Arun Kumar Traders 18.37 Baba Traders 2.28 Total 20.65 Munger Habeeb Store 75.657 Vinayak Marketing 17.743 Total 93.4 Masuarhi Jai Mata Di 25.104 Madhepura A K Enterprise 10.35 Lakhisarai Sri Bhagwati Agency 42.83 Jhaja Ram Bhandar 51.37 Rajgir Sri Ram Trading 33.12