Reliance dairy life project location:Ludhiana

- 1 -

Summer Internship Project Report

On

“Consumer and Retailer Awareness level Regarding Dairy Products with Special Reference to Reliance Dairy Food Ltd”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS STUDIES,

PUNJAB AGRICULTURAL UNIVERSITY

2014-16

Under the Guidance of: By:

I. Faculty Mentor - Prof. Khushdeep Dharni Tanuj

(Associate Professor) L-2014-BS-39-MBA

II. Industry Mentor Name - Mr. Sameer Arora 2014-16

(Area In charge)

2

ACKNOWLEDGEMENT

Success of every Summer Internship Program and their Project depend largely on the

self & encouragement and guidance of many others. I take this opportunity to express my

gratitude to the people who have been instrumental in the successful completion of my

Internship Program as well as the Project Report.

First of all I would like to thank the management at Reliance Dairy Food Ltd for

giving me the opportunity to do my 8 weeks Summer Internship Training in their esteemed

organization and also for providing me with valuable advice, data for project and endless

supply of new ideas & support for the Project.

I would like to thank my Industrial Mentor, Mr. Sameer Arora (Area in Charge) and

Mr. A.P.S Bhatia (Marketing Head) for providing practical exposure for project during

training and his valuable guideline during the Training Period.

I would like to thank Dr. Khushdeep Dharni (Associate Professor) and Dr. Babita

Kumar (Associate Professor) for providing valuable suggestions and helping throughout

the course of training.

At the last but not the least, I want to thank all the mentors i.e. both industrial and

institutional, all the people, Respondent, Retailers, Distributors and each & every person

who support and help me in Performing my Training Successfully and help in completing

this Report directly or indirectly.

Thanking You:

Tanuj

L-2014-BS-39-MBA

SCHOOL OF BUSINESS STUDIES, PUNJAB AGRICULTURAL UNIVERSITY

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DECLARATION

I hereby declare that the following project report titled “Consumer and

Retailer Awareness level Regarding Dairy Products with Special Reference to

Reliance Dairy Food Ltd” at Reliance Dairy Food ltd. Ludhiana is an authentic

work done by me. It is to the best of my knowledge and belief. This is to declare

that all my work indulged in the completion of this Project Report such as research,

competitor analysis and sales promotion is a profound and honest work of mine.

The work done by me had not been submitted to any organization, Institution,

Company for any incentive or activity.

Signature:

Tanuj

4

SR/No.

INDEX

P/No.

1

EXCUTIVE SUMMARY

5

2

INTRODUCTION TO THE ORGANIZATION

7

3. FINANCIAL ANALYSIS 22

4

INTRODUCTION TO SUMMER TRAINING PROJECT

28

5

RESEARCH METHODOLOGY

31

6

DATA ANALYSIS & INTERPRETATTION

34

7

FINDINGS

54

8. RECOMMEDATIONS 56

9.

CONCLUSION

58

9

ANNEXTURE

60

5

EXECUTIVE SUMMARY

This Study has been done with an aim of determining the various factors which would

Influence Sale of the Dairy Product of the Reliance Dairy Food Ltd. and also to determine the method or strategy to place the product in the new and existing market.

This study is fully based on the collection of Primary data through questionnaire method during the

Summer Internship Program which started from 15th June 2015 till 8th August 2015. There our main

objective is to collect the order from the assigned market area and provide it to the distributer as

well as to help him in delivering the product at the required place. The reporting time was 06:30

AM in morning till the 12:00 PM at noon.

Our responsibility was to collect various complains of the retailer & the customer and make it

available before the respected authority i.e. ASM (Area Sales Manager) in order to resolve the

problem.

This also involves processes to collect the data for completion of the project. The training also

includes daily report submission to the mentor about the overall development of the work.

The project was divided into further division in Research mythology:-

I. Research Design

i. Exploratory research

ii. Descriptive research

II. Data Sources

i. Primary Data

ii. Secondary Data

III. Sampling Design

i. Definition Of Population

ii. Sampling procedure

iii. Sampling size

IV. Statistical Tools

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The scope of this project is given below:-

Help in finding out the various factors affecting the sales of the product

of RDFL.

Help in sorting out the relationship and their level of extent on which

they affect.

To overview the different ways to place the product of Reliance Dairy

Food ltd.

To help in finding out the different demographic factors in executing the

product placement and their sales.

ORGANIZATIONS AREA COVERED:-

In order to pursue this project report the following area has been covered:-

Marketing area of Reliance Dairy Food ltd.

Different territories where these product has been selling earlier.

New area to be covered during the summer internship program.

Sales Department of Reliance Dairy Food ltd.

Distribution channel of Reliance Dairy Food ltd.

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INTRODUCTION TO THE ORGANIZA T IO N

The Organization in which the summer internship has been conducted is a subsidiary body of

Reliance Industries ltd. which deals with the production of dairy product known as Reliance Dairy

Food ltd.

"Our dreams have to be bigger.

Our ambitions higher.

Our commitment deeper.

And our efforts greater.

This is my dream for Reliance and for India."

Dhirubhai H. Ambani

Founder Chairman Reliance Group

December 28, 1932 - July 6, 2002

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private

sector enterprise, with businesses in the energy and materials value chain. Group's annual

revenues are in excess of US$ 66 billion. The flagship company, Reliance Industries Limited, is a

Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.

Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical

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integration - in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil

and gas exploration and production - to be fully integrated along the materials and energy value

chain. The Group's activities span exploration and production of oil and gas, petroleum refining

and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles,

retail, infotel and special economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre

producer in the world and among the top five to ten producers in the world in major

petrochemical products.

Major Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance

Industrial Infrastructure Limited.

Performance and Achievements

2015- Ranked 142th on Forbes Global 2000 Top Companies list.

2014- The Brand Trust Report ranked Reliance Industries as the 9th trusted brand in

India.

2013- Ranked 107th. on the Fortune Global 500 list.

2013- Ranked 25th. on ICIS Top 100 Chemical Companies list.

2012- Certified as 'Responsible Care Company' by the American Chemistry Council.

2012- Jamnagar Refinery listed among the world’s top five manufacturing units by

Discovery Channel.

2010- Ranked second amongst BCG’s ten top global ‘Sustainable Value Creators’.

2010- Reliance E&P's KG-D6 won Marico Innovation Foundation’s Innovation for India

Award for combined synthesis of advanced technologies, extreme engineering,

innovative execution, yielding unprecedented results and impact on India's energy

security.

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RELIANCE RETAIL

Reliance Retail is the retail initiative of the group and an epicenter of our consumer facing

businesses. It has in a short time forged strong and enduring bonds with millions of consumers by

providing them unlimited choice, outstanding value proposition, superior quality and unmatched

experience across all its retail stores.

With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small

shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to

lead Reliance Group’s foray into organized retail.

Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organization that

caters to millions of customers, thousands of farmers and vendors. Reliance Retail serves over 2.5

million customers every week, and its loyalty programme, Reliance One, has the patronage of

more than 6.75 million customers. Our nationwide network of retail outlets delivers a world-class

shopping environment and unmatched customer experience powered by our state-of-the-art

technology and seamless supply-chain infrastructure. Based on its core growth strategy of

backward integration, RRL has made rapid progress towards building an entire value chain

starting from the farmers to the end consumers.

Reliance Retail has adopted a multi-format strategy and operates convenience stores,

supermarkets, hypermarkets, wholesale cash & carry stores, and specialty stores and has

democratized access to all types of products and services across all segments for all Indian

consumers. Its presence in the optics business is in partnership with Grand Vision. 51 new stores

were added during FY-11 taking the total presence to 100 stores across key markets in the

country. The retail chain offers single brand optical products including Vision Express frames,

lenses, contact lenses, sunglasses, solutions and accessories.

Deep insight into India’s economic, cultural and consumption diversity drives Reliance Retail’s

vision in the retail universe. The operating model is based on customer centricity, while

leveraging common centers of excellence in technology, business processes and supply chain.

More importantly, it has built a strong and unwavering foundation through its extraordinary

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people.

Reliance Retail has achieved the distinction of being the largest retailer in the country with core

format sectors attaining market leadership in their respective categories. Reliance Retail’s

commitment to bettering lives has been embodied in its pursuit to make a difference on social

socio-economic issues in India. The initiative has brought millions of farmers and small producers

to the forefront of the retail revolution by partnering with them for growth. Reliance Retail has

emerged as the partner of choice for International brands and has established exclusive

partnerships with many revered international brands such as Diesel, Superdry, Hamleys,

Ermenegildo Zegna, Marks and Spencer, Paul & Shark, Thomas Pink, Kenneth Cole, Brooks

Brothers, Steve Madden, Payless Shoesource, Grand Vision and many more.

For the very first time, consumers in India got the opportunity to experience Hamleys, which is

considered to be the world's most wonderful toy shop. The brand was launched in India with

opening up of 2 stores during the year. iStore by Reliance Digital is a one-stop-shop for all Apple

products and services. There are 17 such stores currently operational.

Reliance Brands also announced exclusive licensing arrangement with two leading international

brands:

Steve Madden, a leading designer, wholesaler and retailer of fashion-forward footwear

and accessories for women, men and children.

Quicksilver, a leading outdoor sports lifestyle company to launch their core brands

'Quicksilver' and 'Roxy'.

Across India, Reliance Retail serves over 2.5 million customers every week. Its loyalty

programmed, "Reliance One", has the patronage of more than 6.75 million customers.

Reliance Retail Reliance Retail is the retail business wing of the Reliance business. Many

brands like Reliance Fresh, Reliance Dairy Food Ltd., Reliance Footprint, Reliance Time

Out, Reliance Digital, and Reliance Wellness, Reliance Trends, Reliance AutoZone,

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Reliance Super, Reliance Mart, Reliance iStore, Reliance Home Kitchens, Reliance Market

(Cash n Carry) and Reliance Jewel come under the Reliance Retail brand.

Achievements

Retail Recognised as the ‘Best Brand’ in the Consumer Electronics and Appliances

Retailers category by The Economic Times.

Best Brands 2014 Franchise India Retail Awards 2014.

CDIT and Telecommunications Retailer Awarded the ‘Most Admired Retailer’ of the

Year.

Large Format as well as Private Label by Images Retail Awards 2014.

Ranked among the ‘Most Trusted Service Brands’ in India by Brand Equity.

Award for ‘Marketing Excellence in Retail Sector’ given in the field of Marketing

Dynamics towards a sustainable tomorrow and continuous marketing practice in Retail.

Award for ‘Best Diamond Jewellery’ of the Year from National Jewellery Awards 2014,

in Vogue and Bridal category.

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RELIANCE DAIRY FOOD LTD (RDFL)

Reliance Dairy Foods Limited is a Public Company incorporated on 28 November 2006. It is

classified as Indian Non-Government Company and is registered at Registrar of Companies,

Mumbai. Its authorized share capital is Rs. 2,500,000 and its paid up capital is Rs. 2,500,000.

Reliance Retail started at Hyderabad, July 16 after fresh vegetables & fruits and FMCG products,

Reliance Retail has stepped into the dairy products sector with a national ‘pilot’ launch of its

liquid milk (family milk segment) in Hyderabad. The milk brand is also being sold “through

general trade (including milk retailers) in Haryana, Punjab, Andhra Pradesh, Tamil Nadu,

Rajasthan, Delhi NCR (National Capital Region) and Himachal Pradesh.

Reliance Dairy Foods Limited's Annual General Meeting (AGM) was last held on 31 August

2013 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last

filed on 31 March 2013. Directors of Reliance Dairy Foods Limited are Pankaj Mohan Pawar,

Harsev Singh and Pramod Madhukar Bhawalkar.

Reliance Dairy Foods Limited's Corporate Identification Number is (CIN)

U15419MH2006PLC165826 and its registration number is 165826.

Its Email address is [email protected] and its registered address is 3rd Floor, Court House,

Lokmanya Tilak Marg , Dhobi Talao, MUMBAI - 400002, Maharashtra INDIA.

Current status of Reliance Dairy Foods Limited is - Amalgamated.

With the beginning of sale of ‘Dairy Pure’ through general milk retailers, as opposed to

mostly through Reliance Retail-owned stores now, the company expects further growth in this

business.

Mission & Vision of RDFL:-

Mission

"Bring prosperity to millions of Indian producers, especially our farmers, by providing the

most attractive returns for their effort".

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Vision

Become Number One Dairy Brand in the Country.

Ensure cost & quality competitiveness through adoption of best technology & business

practices.

Maximizing returns to stake holders, farmers and value for money to the consumer.

SWOT ANALYSIS

STRENGTHS:

1. The reliance group is India’s largest private sector enterprise.

2. The company has strong brand image for its products.

3. Well qualified and technically sound people in the organization.

WEAKNESS:

1. Company is new in the dairy sector.

2. Absence of a strong distribution channel.

3. Company has a poor market share in Ludhiana.

4. No effective promotional efforts are being taken by the company.

OPPORTUNITIES:

1. Ludhiana is one of the biggest markets for milk product in the country.

2. Per capita consumption of milk is still below the world average.

THREATS:

1. Presence of established players like VERKA, MOTHER DAIRY, TRU mik.

2. Margin is very low in dairy industry.

3. Uncertainty in market factors and changing market scenario.

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Organization Structure

Organization Structure is divided into two parts:

→ Internal Organization Structure

→ External Organization Structure

● External Organization Structure

External Organization Structure is the organization structure that affects the organization from

the out side.

State Level Marketing Federation

District Milk Product Union Ltd.

Village Milk Product Union Ltd.

Villagers

As we know, Reliance Dairy Foods Ltd is unit of Ludhiana Milk Marketing Federation, which is

a co-operative organization. The villagers of more than 10000 villages are the bases of this

structure. They all make village milk producers union, district level milk producers union and

then a state level marketing federation is established. The structure is line relationship, which

provides easy way to operation. It also provides better communication between two stages.

15

Internal Organization Structure:

The following is internal organization chart of Reliance Dairy:

Organization Structure Chart

Chairman

Managing Director

General Manager

Ass. General Manager

Finance Dept. Production Dept. Marketing Dept. Sales & purchase Dept. Personnel Dept

Senior Senior Senior Senior Senior

Manager Manager Manager Manager Manager

Finance Production Marketing Sales Personal

Manager Manager Manager Manager Manager

Accountant Officer Marketing Officer P.R.F Executive

Officers Supervisor F.S.R. Salesmen Executive

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Production Function:

Explosion of the production technology and changes in technical field is going to bring out

revolution in the industry sector which eventually gives stand to study and favors the come

backing subject i.e. production and management.

Production and operation management is planning, organizing, staffing, directing and controlling

of all the production system those portion of organization that convert inputs into products and

services. In general production system takes raw material, personnel, machines, buildings and

other resources and produce products and services.

The core of production system is its conversion subsystem where in workers; raw

materials are used to convert inputs into products and services. This production department is at

heart of the firm, as it is able to produce low cost products and superior quality in timely

manners.

Thus, there arises enormous need of giving due importance to this department as a whole

and a strong concrete base being foundation pillars of a manufacturing organization, if the

intention is to succeed domestically and globally.

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SUPPLY CHAIN MODELS OF RDFL MILK

RELIANCE

DAIRY PLANTS

PROCESSIN

G

UNIT/POINT

COLLECTION

POINT/UNIT

DISTRIBUTER DISTRIBUTER

RELIANCE

DAIRY PLANTS

RELIANCE

DAIRY PLANTS

RELIANCE OWN LOGISTICS

DISTRIBUTER

FARMERS

CATEGOR

Y 1

FARMERS

CATEGOR

Y 1

FARMERS

CATEGOR

Y 1

RETAILE

R

RETAILE

R

RETAILE

R

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Product Portfolio

Product list, Variety and Price:-

Products Variety Pack Size Price (Rs)

Milk

FCM 500 ml 24

1 ltr 48

SM 500 ml 21

1 ltr 42

6 ltr 246

TM 500 ml 19

6 ltr 222

DTM 500 ml 17

Curd

Cup 350 g 25

Cup 185 g 15

Pouch 175 g 10

RDFL

Milk Curd Butter Milk Sweets Paneer

FCM

TM DTM

SM

Ghee

19

Pouch 400 g 24

Pouch 1 kg 60

Buttermilk Pouch 500 ml 15

Pouch 900 ml 25

Paneer Pouch 200 g 60

Pouch 1 kg 295

Sweets

Rasgulla 1 kg 190

Gulab Jamun 1 kg 180

Milk Cake 400 g 175

Doda barfi 400 g 175

Mathura Peda 400 g 175

Kaju Katli 400 g 299

Combo- Peda 400 g 399

Combo- Kaju Katli 400 g 499

Operating Analysis-

Reliance only source of raw material is Village Milk societies. Milk is brought from

such village milk societies every morning and evening. This milk is then sent to the dairy plant.

In the dairy plant the milk is processed i.e. it is made free from germs.

Milk Processing

The entire process of milk can be divided into following steps:

Process of Procurement & Distribution of Milk:-

Farmers and the Milk Co-operative Society.

The Operation Floodprogramme helps both farmers as wellas the city consumers. The

programme ensures that thefarmers get a fair price for their cow & buffalo milk and

theconsumers get best quality milk at reasonable prices.

In order to maintain freshness, this milk is chilled and then transported to Diary in insulated milk

tankers by road and by rail.

Checking the quality of Milk: -

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At the Dairy stringent hygienic standards aremaintained. The milk in the tankers is firstchecked

for quality and freshness and thenunloaded into huge insulated stainless steelstorage tanks. These

tanks have a capacity of 1lakh liters each. The presence of adulterants (impurities) like urea,

neutralizers, preservatives and germs like bacteria arechecked. All these tests ensure that only

goodquality milk is accepted. Once empty, thetankers are thoroughly cleaned and sanitized

Processing of milk

Unprocessed milk may contain small dirtparticles invisible to the naked eye. Inorder to remove

these particles the milk has to be processed.

Dispatching of milk

After processing, the milk is chilled and stored insilos and further chilled to about 2 C. by the

glycol chilling system, and then dispatched to the MilkShops in insulated road milk tankers.

Prior to the milkbeing dispatched in tankers, it is tested for quality tomake sure that it meets the

quality standards. Whenthe tanker arrives at the shop the milk is transferred into a large

refrigerator

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Milk Processing Chart: Collection of Raw-Milk

Electronic Milk Test

Ethylene Blue Reduction Test

Purchasing and Standardizing Process

Separation Process

Quality Check

Packaging Process

Cold Storage

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2. FINANCIAL ANALYSIS

I. Liquidity Ratio

1). Current Ratio = Current Assets_

Current liabilities

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Current Assets

94,896 130,399 137,138

Current

Liabilities 92,468 85,011 83,968

Current

Ratio 1.03 1.53 1.63

Standard Ratio= 2:1

Interpretation: Since 2012-13 current ratio is continuously decreasing. There is a decrease in current assets from 2012 to 2014 and an increase in current liabilities as well. This is the reason

that the current ratio is decreasing over the past three years.

2). Quick Ratio/ Acid Test Ratio= Current Assets- Inventory- Prepaid Expenses Current Liabilities

YEAR 2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

2011-12

(Rs. Crore)

Quick Assets 58345 87467 94409

Current

Liabilities 92,468 85,011 83,968

Quick Ratio 0.63 1.03 1.12

Standard ratio= 1:1

Interpretation: Quick ratio for the current year is 0.63:1 and there is a decrease in quick ratio over years as it has been 1:1 in year 2012 and has decreased to 0.63:1 in year 2014. The decrease

in the ratio is because the currents liabilities have increased at an extent as compared to the increase in quick assets. The company needs to increase its quick assets so as to meet the standard ratio.

3). Absolute Liquid Ratio= Cash+ Marketable Securities

23

Current Liabilities

YEAR 2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

2011-12

(Rs. Crore)

Cash + marketable

Securities

11,571 36,624 49,547

Current Liabilities

92,468 85,011 83,968

Absolute

Ratio 0.125 0.43 0.59

Standard Ratio= 0.5:1

Interpretation: The purpose of absolute ratio is to find whether absolute liquid assets are sufficient or not and they should be approximately half of the current liabilities. The company

should increase its assets in order to reach the standard ratio.

II. Solvency Ratio

4). Debt Equity Ratio= Total Debts____

Shareholder’s Funds

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Total Debts 89,141 85,481 54,523

Shareholder’s Funds 216,176 197,091 178,965

Debt Equity Ratio 0.41 0.43 0.30

Standard Ratio= 1:1

Interpretation: Debt is outsider’s funds thus own funds are essential which leads to equity in an

organisation. But debt is a cheaper source thus a mix of debt and equity should be there. According to the standard ratio, the debt and equity proportion should be same but debts are less

in every year. 5). Interest Coverage Ratio= Operating Income/EBIT

Interest Expenses

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

24

EBIT 31600 30874 30785

Interest Expenses 2,367 3,206 3,036

Interest Coverage Ratio 13.35 9.63 10.14

Interpretation: This ratio is calculated to know that how many times the interest is covered from our operating income. So the higher the ratio, better will be the position of the company to cover its interest from profits.

III. Profitability Ratios

6). Operating Profit Ratio= Operating Profit x 100

Net Sales

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Operating Profit 31,602 30,877 30,787

Net Sales 329,076 390,117 360,297

Operating Ratio 9.60 7.91 8.54

*Operating Profit= Net Sales - Operating Cost/ Gross Profit – Operating Expenses Interpretation: Operating profit ratio measures what proportion of a company's revenue

is left over, after deducting direct costs and overhead and before taxes and other indirect costs such as interest. The company has favourable operating profit ratio.

7). Net Profit Ratio = Net Profit x100 Net Sales

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Net Profit 22,719.00 21,984.00 21,003.00

Net Sales 329,076 390,117 360,297

Net Profit Ratio 6.90 5.63 5.82

Interpretation: Higher the ratio, better is the position of the organisation.

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8). Profits before tax to Sales= Profits before tax x 100

Net Sales

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Profit before tax(PBT) 29,468 27,818 26,284

Net Sales 329,076 390,117 360,297

Profit before tax to

Sales 8.95 7.13 7.29

Interpretation: A profitability measure that looks at a company's profits before the company

has to pay corporate income tax. A higher ratio is considered favourable.

IV. Profitability Ratios (Investments) 9). Return on Equity= Profit after tax ×100

Shareholder’s Funds

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Profit after tax (PAT) 22,719 21,984.00 21,003

Shareholder’s Funds 216,176 197,091 178,965

Return on Equity 10.51 11.15 11.73

Interpretation: Higher the return on equity, better in the position of the organisation. 10). Return on Investment= Net Profit before Interest & Taxes x 100

Capital Employed

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

PBIT 31,602 30,877 30,787

Capital Employed 303282 281467 245315

Return on

Investment 10.42 10.97 12.55

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Interpretation: ROI measures the amount of return on an investment relative to the investment’s cost.

11). Earnings per share= ____Profit After Tax_____

No. of equity shareholders

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Profit after Tax (PAT) 22,719 21,984.00 21,003

No. of equity shareholders

32359 323199 32287

Earnings per share 70.21 68.02 65.05

Interpretation: Higher earnings per share is always better than a lower ratio because this means the company is more profitable and the company has more profits to distribute to its shareholders

12). Price Earning ratio= Market price of share Earnings per share

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Market Price of shares 865 961 793.70

Earnings per share 70.21 68.02 65.05

Price earning ratio 12.32 14.13 12.20

Interpretation: A high P/E suggests that investors are expecting higher earnings growth in the

future compared to companies with a lower P/E.

V. Activity Ratios

13). Stock turnover ratio= Cost of goods sold/ Net Sales

Average Inventory

YEAR 2014-15

(Rs. Crore)

2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

Net Sales 329,076 390,117 360,297

Average Inventory 35309 41724 41461

Stock turnover ratio 9.32 9.35 8.69

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Interpretation: Inventory Turnover Ratio measures company's efficiency in turning its inventory into sales. Its purpose is to measure the liquidity of the inventory. Increasing

inventory turnover ratio is a signal of efficiency.

14). Debtor turnover ratio= _Net sales_ Debtors

YEAR 2013-14

(Rs. Crore)

2012-13

(Rs. Crore)

2011-12

(Rs. Crore)

Net Sales 329,076 390,117 360,297

Debtors 7662 11272 15152

Debtor turnover

ratio

42.95 34.61 23.78

Interpretation: Accounts receivable turnover ratio simply measures how many times the receivables are collected during a particular period. Higher ratio implies that receivables are

more liquid.

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INTRODUCTION

TO

SUMMER

TRAINING

PROJECT

29

Title of the study

Awareness among the consumers and retailers regarding the Reliance milk.

OBJECTIVES OF STUDY:

1) To enhance the sales of Reliance milk.

2) To study which product of Reliance milk has highest sale among the retailers in

Ludhiana.

3) To study the level of awareness among retailer regarding Reliance milk.

4) To study retailer satisfaction with price, profit margin, packaging, promotional scheme

and quality of Reliance milk.

5) To study the consumer awareness level.

6) Identify consumer’s priority.

7) To study the consumer perception regarding the product and services of Reliance Milk.

SCOPE OF THE STUDY:

1) It will provide information about the size of Retailers network.

2) It will give information about the services provided by company and distributors to

their retailers.

3) It will provide information about competitor’s products.

4) It will serve consumers in better manner.

5) It will provide suggestions to company for improving their sales.

6) It will provide information about the sale promotion activities to improve the milk

sales.

7) From this study, we will get to know about the consumer’s perception about the services

offered by the company.

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Limitations of the study:-

1) Since the study was done in few areas of Ludhiana. The results cannot be

generalized on all Ludhiana bases.

2) Shopkeepers also tend to hide some facts and figures due to some reasons which can

hinder the results we get from this survey.

3) Overall market was too vast and it was not possible to cover each and every customer

in the available short span of time.

4) The research was conducted in present prevailing conditions. There can be some

fluctuations in the market, which can offset the findings.

5) Generally, the respondents were busy in their work and were not interested in

responding.

6) Respondents gave very idealistic viewpoints, thus, gauging true feelings was tough but

still best efforts were made through disguised statements.

7) Paucity of time acted as major constraint in my study.

8) The customer response was little biased as many respondents gave a positive reply even

though they had complaints regarding the delivery of the order.

9) Still a lot can be done to make the whole system efficient.

31

RESEARCH

METHODOLOGY

32

RESEARCH METHODOLOGY:-

Research methodology is way to systematically solve the research problem. Research, in

common terms refers to a search for knowledge. Research methodology consists of different

steps that are generally adopted by a researcher to study the research problem along with the

logic behind them.

RESEARCH DESIGN:-

Research design is the plan, structure and strategy of investigation conceived so as to

obtain answers to research question.

There are two types of research design. One is exploratory research and other is

descriptive research.

Exploratory research:-

We studied the company report, talked to the retailer and employee of the company. We identified that, retailer are not satisfy of Reliance Dairy Products.

Descriptive research:-

Survey method was adopted for this research.

DATA SOURCES:-

The study is mainly based on the data collection from primary as well as secondary sources.

Primary data: Data collected for specific purposes in the form of

questionnaire.

Secondary data: Data existing in the form of Internal sources, Internet

Catalogues etc.

SAMPLING DESIGN:-

Definition of population: All the RDFL Retailers in Ludhiana.

Sampling procedure: A non-probability sampling technique i.e. convenient

sampling procedure was adopted.

Sampling size: A sample of 100 retailers was selected from the target

population for the study.

33

DATA COLLECTION - FLOW CHART:-

SOFTWARE USE:-

Microsoft Excel

Microsoft Word

From each one

randomly selected

the data

Data was collected

through structure

questionnaire

First allocate the

area as per

company norms.

Personally visited &

filled by asking them

questions.

Then total covered as Ludhiana: -

I) Jamalpur II) Moti Nagar III)

Arjun dev nagar IV) Sarpanach

Colony V) College Road VI)

Ghumar Mandi VII) Model town

VIII) Agar Nagar

To filled 10 questionnaires

normally I had interact

more than 20 respondents.

I chose for filled data in

8 locations.

Finally 100 primary data was

collected each from Retailer

and Consumer.

34

DATA ANALYSIS

AND

INTERPRETATION

35

1) Consumer

Awareness About

Reliance Milk

36

1. GENDER

Gender No of respondents % age of respondents

Male 28 28%

Female 72 72%

INTERPRETATION:

72% of respondents were female and 28% of respondents were male.

28%

72%

Male

Female

37

2. LEVEL OF INCOME:

Monthly income No of respondents % age of respondents

< 25,000 15 15%

25,000-50,000 23 23%

50,000-75,000 42 42%

>75,000 20 20%

INTERPRETATION:

15% of respondents have less than 25 thousand monthly income and 23% of respondents have

monthly income between 25 thousand to 50 thousand and 42% of respondents have monthly

income between 50 thousand to 75 thousand and 20% of respondents have monthly income more

than 75 thousand.

15%

23%

42%

20%

< 25000

25000-50000

50000-75000

75000-100000

38

3. Type of milk consumption:

No of respondents % age of respondents

Pouch milk 40 40%

Loose milk 42 42%

Both 18 18%

INTERPRETATION:

40% of respondents were consuming pouch milk, 42% of respondents were consuming loose

milk and 18% were consuming both.

40%

42%

18%

Pouch milk

Loose milk

Both

39

4. Satisfied with milk you are consuming:

No of respondents % age of respondents

Yes 84 84%

No 16 16%

INTERPRETATION:

84% of the consumers were satisfied with the milk they were consuming and 16% were not

satisfied.

84%

16%

yes

no

40

5. Factor influencing buying milk behavior:

Parameters Most

important Important Neutral

Least

important

Not

important

Frequency Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%)

Quality 72 72 24 24 4 4 - - - -

Taste 57 57 27 27 11 11 8 8 - -

Price 21 21 27 27 32 32 14 14 6 6

Packaging 15 15 24 24 39 39 15 15 7 7

Availability 47 47 30 30 12 12 9 9 2 2

INTERPRETATION:

72% of the respondants considered quality as most important factor affecting their milk buying

behavior. 57% of the respondants considered taste as most important for buying milk. Price was

considered as neutral factor by 32% respondants. 39% of the respondants considered packaging

also as neutral factor. 47% of the respondants considered availability factor as most important.

0

10

20

30

40

50

60

70

80

Most important Important Neutral Least important Not important

Quality

Taste

Price

Packaging

Availability

41

6. Preferance of brand in pouch milk

INTERPRETATION:

57% of the respondants preferred Verka milk followed by 21% preferring Reliance milk. Tru

Milk and Mother Diary was preferred by 10% and 6% respectively. Remaining 6% preferred

Other brand.

Verka57%

Mother Diary6%

Reliance21%

Tru Milk10% Others

6%

42

7. Scaling of Pouch milk

Attributes Most


Least

important

Not

important


(%) Frequency

Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%)

Price 14 14 26 26 41 41 11 11 8 8

Taste 24 24 43 43 14 14 13 13 6 6

Packaging 16 16 27 27 39 39 10 10 8 8

Availability 26 26 42 42 19 19 8 8 5 5

Schemes 14 14 29 29 36 36 17 17 4 4

INTERPRETATION:

According to 41% of the respondants, price did not affected them. 43% of the respondants

considered taste as an important factor. 39% of the respondants were not affected by the

packaging of the pouvh milk. 42% of the respondants considered availability as an important

0

5

10

15

20

25

30

35

40

45

50

Most important Important Neutral Least important Not important

Price

Taste

Packaging

Availability

Schemes

43

factor in scaling the pouch milk. 36% of the respondants were not affected by the schemes

offered by the companies.

8. Sale of reliance milk according to type:

Milk type No of respondents % age of respondents

FCM 15 15%

SM 23 23%

TM 42 42%

DTM 20 20%

21%

54%

9%

16%

FCM

SM

TM

DTM

44

9. Source of getting milk:

Source No of respondents % age of respondents

Retailer 11 11%

Door step 89 89%

INTERPRETATION:

11% of the consumers were purchasing the milk from retailer and 89% of consumers were

getting milk at door step.

0

10

20

30

40

50

60

70

80

90

Retailer Doorstep

11

89 %age

45

10. Source of Information

Source %age

Friends/family 22

Salesman 20

Retailer 47

Other 11

INTERPRETATION:

Majority of the respondants i.e. 47% got the information about the Reliance milk from the

retailer. 22% of the respondants were informed by friends or family. 20% of the respondants got

information from the salesman and rest 11% from other sources.

0

10

20

30

40

50

Friends/family Salesman Retailer other

2220

47

11

(%)

46

11.Promotional activities affecting buying behavior


Yes 54 54%

No 46 46%

INTERPRETATION:

54% of the consumers were affected by promotional activities and 46% of the consumers were

not affected.

54%

46%

Yes

No

47

2) Retailer Awareness

About Reliance Milk

48

1. Procuring milk:


Yes 100 100%

No 0 0%

INTERPRETATION:

All the retailers were selling milk.

Yes

No

49

2.Procurement of different brands of milk:

Source No of respondents % age of respondents

Verka 77 77%

Reliance 9 9%

Mother dairy 6 6%

Tru milk 5 5%

Others 3 3%

INTERPRETATION:

77% of the retailers were procuring verka milk , 9 % of the retailer were procuring reliance milk

, 6% of the retailer were procuring Mother Dairy milk , 5% of the retailer were procuring Tru

milk and 3 % of the retailer were procuring others.

77%

9%

6%5% 3%

verka

reliance

mother dairy

Tru milk

Other

50

3.Demand of different milk types:


FCM 17 17%

SM 61 61%

TM 9 9%

DTM 13 13%

INTERPRETATION:

Demand for Full cream milk was 17% , 61% for standard milk , 9% for tonned mik and 13% for

double tonned milk.

17%

61%

9%

13%

FCM

SM

TM

DTM

51

4. Factors affecting milk procurement behavior

Parameters Affects the

most

Affects

moderately Neutral

Affects

mildly

Affects the

least


(%) Frequency

Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%)

Consumer

demand 72 72 24 24 4 4 - - - -

Profit

margin 57 57 32 32 9 9 2 2 - -

Shelf life 11 11 43 43 37 37 6 6 6 6

After sale

services 19 19 35 35 27 27 11 11 11 11

Special

schemes 18 18 41 41 29 29 7 7 7 7

INTERPRETATION:

72% of the respondant’s milk procurement behavior was most affected by consumer demand.

57% of the respondants were most affected by the profit margin.43% of the respondants were

moderately affected by the shelflife of the product. 35% of the respondants were also moderately

affected by the after sales services offered by the company. 41% of the respondants were

moderaltely affected by the special schemes offered by the company.

0

10

20

30

40

50

60

70

80

Affects the most Affectsmoderately

Neutral Affects mildly Affects the least

Consumer demand

Profit margin

Shelf life

After sale services

Special schemes

52

5. Rating of the milk being procured


most

Affects

moderately Neutral

Affects

mildly

Affects the

least


(%) Frequency

Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%) Frequency

Percentage

(%)

Quality 11 11 15 15 56 56 17 17 1 1

Shelf life 14 14 29 29 33 33 19 19 5 5

Packaging 12 12 21 21 35 35 22 22 10 10

After sale

services 10 10 13 13 29 29 37 37 11 11

Schemes 3 3 17 17 19 19 44 44 17 17

INTERPRETATION:

56% of the respondants were not affected by the quality of the milk being procured.33% and

35% of the respondants were also not affected by the shelf life andpackaging of the product.

According to 37% and 44% respondants, after sale services and schemes affected them mildly.

0

10

20

30

40

50

60

Excellent Good Neutral Bad Worst

Quality

Shelf life

Packaging

After Sales service

Schemes

53

6. Brand faces complaints by Retailers:

Brand No. of respondents % age of respondents

Verka 71 71%

Mother Dairy 12 12%

Reliance 5 5%

Tru milk 9 9%

Other 3 3%

INTERPRETATION:

71% of the retailers said verka

71%

12%

5%9% 3%

Verka

Mother dairy

Reliance

Tru milk

Other

54

FINDINGS

55

FINDINGS;

Non- flexibility of schedule between distributer and retailers for providing the product.

Retailers do not agree for selling the Reliance product because of low consumer demand.

Margin problem and fewer margins provided by distributer to retailers.

Poor promotional activities and force retailers to sale milk.

Less number of distributors and non attractive schemes.

Less number of Reliance milk booths.

Variation in the taste of buttermilk.

56

RECOMENDATIONS

57

RECOMMENDATIONS

Company should conduct camps and awareness programmes in Ludhiana to create

awareness among people.

Company should attract more retailers by keeping low margin and by reducing the

price so as to increase the profit margin and sales.

Demand and Visibility go hand in hand. If Reliance Dairy can do certain promotions

as its competitor verka does, then it can attract sales. Promotion with the help of

boards, hoardings etc.

The major problem faced by Retailers is the supply problem i.e. problem with the

distribution. The company should aim at improving its supply chain management.

The company should increase incentives that can increase Retailers Nominal Income.

This can be done through certain Schemes that increase the overall sales.

The company should lay emphasis on proper promotion of the brand at the Retail

Outlet.

The company should get a feedback from Retailers time to time. In case they are

facing any problem it can be solved timely, without delays.

The company should start SMS service which will give the details to retailer’s full

account information.

58

CONCLUSIONS

59

The project conclusion:-

After doing the project now conclusion is as we know Reliance is a popular

company and providing more products to the customers, Reliance dairy foods ltd

company provides the dairy products in some cities, and somewhere is more awareness

and somewhere is low but during the my summer internship in the Ludhiana the mostly

Retailers are dissatisfied with Reliance dairy foods ltd. So for this situation company

have to improve the quality , delivery systems and promotions etc.

Finally we conclude on basis of objective led down the project one as follows.

After this study I found that BUTTER MILK & CURDS selling of

Reliance dairy food products ltd is very poor in Ludhiana.

Mostly retailers are not ready to procure Reliance milk because of low

consumer demand.

Retailers are dissatisfied with TIMELY DELIVERY & CREDIT

FACILITY of Reliance dairy milk in Ludhiana.

Mostly retailers are satisfied with PRICE, PACKAGING,

REPLACEMENT FACILITY, & SCHEME of reliance dairy product.

60

ANNEXURE

61

QUESTIONNAIRE 1

Dear Sir/Madam,

I am conducting a survey entitled “Consumer Awareness About Reliance

Milk.” Please give your valuable information, your information will be kept confidential

and will be used only for academic purpose.

Tanuj

MBA 2nd Year

PAU

Name:- _______________________

Address: - _______________________________________________

Age : - _________________ Gender : - _________________

Contact No.: - _________________________

Level of education:- __________________

Your monthly Income is(in Rs.)?

below 25,000 50,000-75,000

25,000-50,000 above 75,000

1) Which milk do you consume?

a) Pouch milk

62

b) Loose milk

c) Both

2) Are you satisfied with the milk you are consuming?

a) Yes

b) No

3) How much quantity do you consume?

Pouch milk_____

Loose milk_____

4) Which factor influence your milk buying behaviour?

Parameters Most


Least

important

Not

important

Quality

Taste

Price

Packaging

Availability

5) In pouch milk which brand do you prefer?

a) Verka

b) Mother Dairy

c) Reliance

d) Tru Milk

63

e) Others________________

6) How do you scale your pouch milk?

Attribute Most


Least

important

Not

important

Price

Taste

Packaging

Availability

Schemes

(Note:- 5- point likert scale is used where 1 is least preferred and 5 is for most

preferred)

7) If you buy RELIANCE milk pouch which pack you purchase?

a) Double toned milk

b) Toned milk

c) Standard milk

d) Full cream milk

8) Reason for buying/ not buying RELIANCE?

a)……………………………………………………..

b)……………………………………………………..

c)……………………………….…………………..…

9) Where do you get milk pouch?

a) Doorstep

b) From retailer

64

10) How far do you travel to purchase milk , generally?

<100 mt

100-300 mt.

300-500 mt.

>500 mt.

11) How do you come to know about the RELIANCE milk?

a) Friends/family b) Salesman

c) Retailer d) Other

12) Does promotional activities affect your purchasing behavior?

a) Yes b) No

65

QUESTIONNAIRE 2

Dear Sir/Madam,

I am conducting a survey entitled “Retailers Awareness About Reliance

Milk.” Please give your valuable information, your information will be kept confidential

and will be used only for academic purpose.

Tanuj

MBA 2nd Year

PAU

Name of retail outlet : - ______________________________

Name of retailer:- _____________________________, Age: - _________________

Area : - _____________________________________________

Contact No : - ___________________

City:- __________________

1) Do you sell milk?

a) Yes b) No

( proceed only if you sell milk)

2) In which area do you sell milk?

3) From which company do you procure milk?

a) Verka

b) Mother dairy

c) Reliance

d) Tru Milk

e) Other_________

66

4) Which milk type has more demand?

Milk type Rank

Double tonned milk

Tonned milk

Standard milk

Full cream milk

5) Which factor influence your milk procurement behaviour?


most

Affects

moderately Neutral

Affects

mildly

Affects

the least

Consumer

demand

Profit margin

Shelf life

After sale

services

Special

schemes

6) How do you rate the milk procured by you on various attributes?

Attribute Excellent Good Neutral Bad Worst

Quality

Shelf life

Packaging

After Sales

service

Schemes

67

7) The buyers are mostly of the age groups

15-25yrs 26-35yrs 36-45yrs >45 yrs

8) Which brand is more preferred by buyers?

Brands Most

preferred Preferred Neutral

Least

preferred

Not

preferred

Verka

Mother dairy

Reliance

Tru milk

Other

9) Reason for procuring/ not procuring RELIANCE milk?

a)……………………………………………………..

b)……………………………………………………..

c)…………………………………………………..…

10) Which of the other milk products do you sell?

a) Paneer

b) Dahi

c) Lassi

d) Ghee

e) Other _________

11) According to you which brand has better product line?

Brands 1 2 3 4 5

Verka

Mother dairy

Reliance

68

Tru milk

Other

12) Which brand faces more complaints by the customer?

Brand Rank

Verka

Mother Dairy

Reliance

Tru Milk

Other

13) Which type of complaints you face the most?

Type of Complaint Rank

Pouch leakage

Bad Odour

Bad printing

Bad Quality

Adulteration