K. K.

WAGH COLLEGE OF AGRICULTURE

BUSINESS MANAGEMENT, NASHIK.

(AFFILIATED TO MAHATMA PHULE KRISHI

VIDYAPITH, RAHURI)

Presentation on

STUDENT READY PROGRAMME 2021-22

PRESENTATED BY – Mr. Tambe Rahul Shivaji

ABMN2018/033
 FLOW OF PRESENTATION
1. Intership Indutrial Attachment
INTERSHIP INDUTRIAL ATTACHMENT
Module Incharge - Prof. P.A.Ghule Sir
 LIST OF CONTENTS
• INTRODUCTION
• INFORMATION OF INDUSTERY
• RESULT AND DISCUSSION
• MARKETING MANAGEMENT
• SUMMARY AND CONCLUSION
• REFERENCES
 INTRODUCTION
•Present Scenario of Agro Processing in India: -
•India is the second-largest producer of food, and has the potential to be the largest on a
global food. Currently India is processing less than 10% of its agriculture output.The
food industry in India comprises the food-producing and processing industries. The
food processing industry is oneof the largest in India – it is ranked fifth in terms of
production, consumption, export and expected growth. Maharashtra is the leading state
in India as far as food processing is concerned.
•The agriculture sector is vital for any nation, and in India, it is the principal source of
livelihood formore than 58 per cent of the population. It is the base for the majority of the
food processing industry, and grew at the rate of 4.4 per cent in 2012-13. At a national level,
the food grain production is close to 245 million tonnes (MT). The food processing industry
is growing at the rateof 13 per cent, and for the Indian economy and the overall growth of
the nation, the growth of foodprocessing industry is very important, as it takes care of
farmers and employment for skilled and unskilled labour.

•According to latest annual survey of industries [2016-2017]

•Food processing accounted for 15.95% of the total number of factories
employment to 11.36% of the work force.
Share Of Different States
 CHAPTER NO
RESULT AND DISCUSSION
Selection Of Organization
 General Information Of Selected Unit
Sr.no. Particulars Information
1. Name of the Factory Vedant Agro Products
2. License No fssai-11518029000571
3. Address Siddhivinayak Co-operation Industry,
estate plot No.2 & 3 ,Ozar(mig)
4. Name of Owner Prashant Y. Shelke
5. Age 56
6. Education Electronic Engineer
7. Email www.vedantagropgmail.com

8. Contact No 8275024595
9. Website www.vedantagroproduct.com
10. Type of Ownership Individual
11. Year of establishment 2014
12. Category of processing Small scale industry
13. Items Processed Tomato Ketchup, Tomato sauce, Soya
sauce, chilli sauce, green chilli sauce, fruit
Jam,Noodles etc
Organizational structure of vedant Agro Products

Owner
Mr. Shelke Prashant.Y.

Managing Director
Mrs. Shelke Sujata.P.

Product Manager
Mr. S.N.Pande

Supervisor

Labour
 Human Resource Management Practices followed in the Industry

Employee Relation

Training and Human Resources Compensation and

Department Benefits admin
Developmen
t

Recruiting
Recruitment process
Identifying Job
Vacancy

analyzing Job requirments

Reviewing
applications

Screening

shortlisting

selecting the right

candidate
Structure of Purchase department
Supplier of Raw materials contract suppliers

purchasing Prashant Y. Shelke

Quality Control Sujata P.

Shelke

Invoice Sujata .p. shelke

 Capital investment of Vedant Agro Products
Sr Category Unit Quantity Year of Purchase Total Amount
No Purchase/ Price (Rs)
Construction
(Rs)
1. Acquisition of Land Sqft 18000 2012 50,00,000 50,00,000
Sq.ft
2. Water Supply ft 300 ft 2012 50,000 50,000

Structure ETP

a)Bore well with

Pump
3. Construction of Sqft 2012 1,00,00,000 1,00,00,000

building (Processing
Unit
+ Office +Lab+
Godown )
4. Fencing (Wall Sqft 2012 1,50,000 1,50,000

Compound)
5. Machinery & No 2014 55,25,000 55,25,000

Equipment

6. Vehicle No 2016 5,00,000 5,00,000

(1 Pickup)

7. Furniture No 2016 1,50,000 1,50,000

8. CCTV + No 2016 50,000 50,000

Computers

9. Lab Equipments No 2014 50,000 50,000

Total 2,14,75,000
Organization Structure of Production Department

Production manager Mr. Prashant shelke

Product Manager Mr. S.N.Pande

Quality Control Manager

Mrs.Sujata Shelke

Supervisor Mr. Gaurav

 Product Profile of processed products

Photo Soya sauce Photo Tomato Ketchup

Photo Red chilli Sauce

Photo. Schezwan Chutney

18
Photo. Mix fruit jam Photo. Tomato Sauce

Photo Hakka Noodles Photo. Green chilli sauce

19
Product Profile of Soya Sauce

Product Name Soya Sauce

Brand Name Sumi
Net weight 680 gm
 Nutritional Information per 100gm
Sr.no. Particulars Per 100g

1. Energy (kcal) 147

2. Protein (g) 3

3. Carbohydrates (g) 34

4. Sugars (g) 13.2

5. Dietary fibre 0.8

6. Fat (g) 0.02

7. Saturated fat (g) 0

8. Trans fat (g) 0

9. Sodium (mg) 5612

 Process flow chart of soya sauce
Wheat 50 parts Soyabean 100 parts

Roasted Soaked

Crush lightly
Griending soyabean Steamed
+ wheat
Addition of water +
preservatives

Fermentation 8
to 11 hours

Boiling at 120-140℃

Checking of acid 47◦B

Pressed filter
Liquid

Cake Strained

Animal feed Soya sauce

 Operating costs
Sr.No. Particulars Amount (Rs)
1. Purchase of Raw Material 1,11,80,800
2. Electricity Charges 60,340
3. Repairing of Machinery & Equipment 2,586
4. Wages 3,82,728

5. Fuel Charges 8,620

6. Packaging charges 17,48,002
7. Miscellaneous Charges 2,586
8. Advertisement Charges 862
9. Loss in Processing @ 0.1 % on 3,02,75,000 30,275
10. GST @ 5% on 3,02,75,000 15,13,750
Total 1,49,30,549
 Machinery and equipment cost of Vedant Agro Products
Sr.No Item Quantity Original Cost Total Cost
Machinery
1. Fruit Washer 1 2,00,000 2,00,000
2. Fruit Crusher 1 75,000 75,000
3. Mixer 2 1,00,000 2,00,000
4. Kettle 3 4,00,000 12,00,000
5. Boiler 1 20,00,000 20,00,000
6. Meal 1 1,00,000 1,00,000
7. Noodle Maker 1 5,00,000 5,00,000
8. Belt Conveyor 1 2,50,000 2,50,000
9. Sealing Machine 1 1,50,000 1,50,000
10. Label Coding Machine 2 50,000+20,000 70,000
11. Filling Machine 1 1,50,000 1,50,000
12. Crown Corking Machine 1 20,000 20,000
 Equipment

1. Carts 500 500 2,50,000

2. Drums 200 900 1,80,000

3. Weighing Balance 1 10,000 10,000

4. Washing Tank 1 10,000 10,000

5. Noodle Dryer Trays 200 700 1,40,000

6. Racks 4 5,000 20,000

Total 55,25,000
 Gross income of vedant Agro
Sr.No. Product Name Quantity Rate Amount (Rs) Percentage Share per
(Kg) (Per (Rs) Product (%)
Year)
1 Tomato Sauce 1,34,452 110 1,47,89,720 8.42%

2 Red Chilli Sauce 1,87,400 75 1,40,55,000 8.00%

3 Soya sauce 4,32,500 70 3,02,75,000 17.24%

3 1,76,750 70 1,23,72,500 7.04%

Green Chilli
Sauce
4 Tomato Ketchup 1,62,246 115 1,86,58,290 10.63%

5 Fix Fruit Jam 1,45,354 130 1,88,96,020 10.76%

6 Noodles 1,88,523 55 1,03,68,765 5.90%

7 Schezwan chutney 6,24,750 90 5,62,27,000 32.01%

Total 17,56,42,795 100%

 Salary expenses
Sr.No Category No Payment/ Payment Total Labour
. Person /Month
Cost/Year
1. Manager 1 50,000 50,000 6,00,000
2. Supervisor 2 50,000 50,000 6,00,000
3. Watchman 1 12,000 12,000 1,44,000
4. Driver 1 15,000 15,000 1,80,000
5. Helper 1 10,000 10,000 1,20,000
Total 16,44,000

Total salary expenses by 17.24% of share in a unit

= 16,44,000 ÷ 100 × 17.24%
= Rs 2,83,425.6

Total salary expenses for Soya sauce = Rs. 2,83,425.6

 Wages expenses

Sr.No Category No Wages/ Total Labour Cost

day No.of
(Rs) Days
1. Male 15 300 296 13,32,000
2. Female 12 250 296 8,88,000
Total 22,20,000

Total wage expenses by % of share in a unit

= 22,20,000 ÷ 100 × 17.24%
= Rs. 3,82,728

Total wage expenses for Soya sauce = Rs. 3,82,728

 Machinery and equipment cost for Soya sauce
Sr. Particular Cost/unit Quantity Total Cost Percentage Total Cost
No (Rs) (Rs) share % (Rs.)
1. Washer 2,00,000 1 2,00,000 17.24% 34,480
2. Mixer 1,00,000 2 2,00,000 17.24% 34,480
3. Kettle 4,00,000 3 12,00,000 17.24% 2,06,880
4. Boiler 20,00,000 1 20,00,000 17.24% 3,44,800
5. Belt Conveyor 2,50,000 1 2,50,000 17.24% 43,100
6. Sealing Machine 1,50,000 1 1,50,000 17.24% 25,860
7. Label Coding 20,000 + 2 70,000 17.24% 12,068
50,000
Machine
8. Filling Machine 1,50,000 1 1,50,000 17.24% 25,860
9. Crown Corking 20,000 1 20,000 17.24% 3,448

Machine
10. Carts 500 500 2,50,000 17.24% 43,100
11. Drums 900 200 1,80,000 17.24% 31,032
12. Weighing 10,000 1 10,000 17.24% 1,724

Balance
13. Washing Tank 10,000 1 10,000 17.24% 1,724
Total of Machinery & Equipment Cost 8,08,556
 Raw material cost for Soya sauce
Sr. no. Raw material Total Rate/lit/kg (Rs.) Total
procurement/ amount/year
Year(kg/lit) (Rs.)

1. soybeans 85,200 110 93,72,000

2. Wheat 42,600 18 7,66,800

4. Thickener (Xantham gum) 2000 300 6,00,000

5. Preservatives 4200 95 3,99,000

6. Sugar 2150 45 96,750

7. Salt 1,132 20 22.640

Total 1,12,57,190
 Packaging cost for soya sauce

Sr. no. particulars Quantity size Rate/lit/kg Total amount

(Rs.) (Rs.)

1. PET 96,500 - 2 1,93,000

2. Can 40,000 5 kg 4 1,60,000

3. Glass bottle 25,000 210 g 5 1,25,000

4. Plastic bottle 2,26,750 1 kg 3 6,80,250

5. Boxes 1,563 - 4 6,252

6. label 2,91,750 - 2 5,83,500

Total 17,48,002
 Apportion table
Sr.no Particular Amount Soya sauce 17.24%
1. Land 50,00,000 8,62,000
2. Building 1,00,00,000 17,24,000
3. Water Supply 50,000 8,620
4. Vehicle 5,00,000 86,000
5. Fuel Charges 50,000 8,620
6. CCTV+ Computer 50,000 8,620

7. Repairing of machinery 15,000 2,586

8. Electricity Charges 3,50,000 60,340

9. Advertisement 5,000 862

10. Miscellaneous 15,000 2,586

11. Fencing 1,50,000 25,860
12. LicenseFees 10,000 1,724
13. Furniture 1,50,000 25,860
14. Tax Insurancee 7,98,500 1,37,661.4
15. Laboratory 50,000 8,620
 Capital investment for soya sauce
Sr. Particular Cost (Rs)
No.
1. Land 8,62,000

2. Building 17,24,000

3. Water Resources 8,620

4. Vehicles 86,200

5. CCTV + Computers 8,620

6. Fencing 25,860

7. Furniture 25,860

8. Machinery & Equipment 8,08,556

Total Initial Investment 35,49,716

 Fixed cost for Soya sauce
Sr.no Particular Amount (Rs)
1. Depreciation on building @ 2% on Rs. 17,24,000 34,480
2. 80,855.6
Depreciation on Machinery & Equipment @10% on Rs. 8,08,556
3. Depreciation on Water Resources @ 10% on Rs. 8,620 862
4. Depreciation on Vehicle @ 10% on Rs. 86,200 8620
5. Depreciation on CCTV @ 10% on Rs. 8,620 862
6. Salary 2,83,425.6
7. Tax & Insurance 1,37,661.4
8. License Fees 1,724
9. Depreciation on Furniture @ 10% on Rs. 25,860 2,586
10. Depreciation on Fencing @ 10% on Rs. 25,860 2,586
A. Total 5,53,662.6
B. Interest on Fixed Cost @ 10% 55,366.26
A+B Total Fixed Cost 6,09,028.86

Fixed cost/kg = Total fixed cost ÷ Total Quantity

= 6,09,028.86÷ 4,32,500
= 1.40
Fixed cost/kg for Soya sauce = Rs.1.40/-
 Variable cost for Soya sauce
Sr.No. Particulars Amount (Rs)
1. Purchase of Raw Material 1,12,57,800
2. Electricity Charges 60,340
3. Repairing of Machinery & Equipment 2,586
4. Wages 3,82,728
5. Fuel Charges 8,620
6. Packaging charges 17,48,002
7. Miscellaneous Charges 2,586
8. Advertisement Charges 862
9. Loss in Processing @ 0.1 % on 3,02,75,000 30,275
10. GST @ 5% on 3,02,75,000 15,13,750
A. Total 1,49,30,549
B. Interest on Variable Cost @ 12% 17,91,665.88
A+B Total Variable Cost 1,67,22,214.9
Variable cost/kg = Total variable cost ÷ Total Quantity

= 1,67,22,214.9÷ 4,32,500
= Rs. 38.66
Variable cost/kg for soya sauce is Rs.38.66
 Estimation of total cost of processing and Per kg cost of
processing

Estimation of total cost of processing of soya sauce:

Total cost of processing

= Total fixed cost + Total variable costTotal cost of processing
= 6,09,028.86+1,67,22,214.9
Total cost of processing = Rs.1,73,31,243.8

Estimation of Per kg cost of processing of soya sauce:

Per kg cost of processing

= Total cost of processing ÷ total quantityPer kg cost of processing

=1,73,31,243.8÷ 4,32,500
Per kg cost of processing of soya sauce = Rs. 40.07
 Profitability of soya sauce

Name of the Per Unit Cost of Total Cost of Total Gross Profit of soya
product Processing / Kg processing (Rs) income (Rs.) sauce
(Rs.)

Soya sauce 40.07 1,73,31,243.8 3,02,75,000 1,29,43,756.2

 Break even analysis for soya sauce :

.A. Break even point for soya sauce in unit:

BEP = Total fixed cost ÷ price per kg – Variable cost per kg

= 6,09,028.86÷ (70 – 38.66)

= 6,09,028.86÷ 31.34
= 19,432.95 kg

Break even quantity of soya sauce (unit) = 19,432.95 kg

B. BEP in monitory terms for soya sauce:

BEP = Fixed Cost / 1 – Variable cost/price per kg

= 6,09,028.86÷ 1 – (38.66 ÷ 70)
= 6,09,028.86÷ 1 – (0.552285174)
=13,60,306.96 Rs

BEP in monitory terms for soya sauce is Rs 13,60,306.96 /-

 Margin of safety of soya sauce
A. Margin of safety in unit:

Margin of safety
= Total production – output at BEP
= 4,32,500 -19,432.95
= 4,13,067.05 kg

Margin of safety of soya sauce in unit is 4,13,067.05 kg

B. Margin of safety in Monetary terms:
Margin of safety
= Gross income – BEP in Rupees
= 3,02,75,000 – 13,60,306.90
= 2,89,14,693.1 Rs

Margin of safety in Monetary terms is Rs. 2,89,14,693.1 /-

39
Benefit cost ratio for soya sauce

B:C Ratio

= Gross income ÷ cost of processing

= 3,02,75,000 ÷ 1,73,31,243.8= 1.74

Benefit cost ratio for soya sauce is 1.74

40
 Net present worth
Sr. no. Cost Benefit Net income NPW
D.F.@

12%

1 3,57,04,377.5 2,46,59,175.7 -1,10,45,200.8 0.8929 -98,62,259.79

2 1,49,46,238 2,59,57,028.1 1,10,10,790.1 0.7972 87,77,801.87

3 1,57,00,827.9 2,73,23,187.5 1,16,22,359.6 0.7118 82,72,795.56
4 1,64,95,133.1 2,87,61,250 1,22,66,116.9 0.6355 77,70,585.06
5 1,73,31,243.8 3,02,75,000 1,29,43,759.2 0.5674 73,44,288.97
Total 2,23,03,211.7

Conclusion: NPW is positive hence project is financially feasible.

Formula = P1/(1+i)t1 + P2/(1+i)t2 + P3/(1+i)t3 + P4/(1+i)t4 + P5/(1+i)t5 - C

P = Net cash flow

41
i = Discount factor t = time period
 Internal rate of return
Year Gross Cost Net income
D.F.@ D.F.@ NPV @ 12% NPV @ 18 %
income
12% 18%

1 2,46,59,175.7 3,57,04,377.5 -1,10,45,200.8 0.8929 0.8475 -98,62,259.79 -93,60,807.68

2 2,59,57,028.1 1,49,46,238 1,10,10,790.1 0.7972 0.7182 87,77,801.87 79,07,949.45

3 2,73,23,187.5 1,57,00,827.9 1,16,22,359.6 0.7118 0.6086 82,72,795.56 70,73,368.05

4 2,87,61,250 1,64,95,133.1 1,22,66,116.9 0.6355 0.5158 77,70,585.06 63,26,863.1

5 3,02,75,000 1,73,31,243.8 1,29,43,759.2 0.5674 0.4371 73,44,288.97 56,57,717.15

Total Rs. 2,23,03,211.7 Rs.1,76,05,090.1

42
 Lower Difference NPW at lower discount rate
IRR = Discount + between two × ------------------------------------
Rate discount rate Absolute difference between NPW
At two discount
rates

IRR = 12 + (18 - 12) × 2,23,03,211.7/ (2,23,03,211.7- 1,76,05,090.1)

= 12 + 6 × (2,23,03,211.7/ 41,98,121.6)
= 12 + 6 × 4.7
= 12 + 28.2
= 40 %

43
 Payback Period
Sr.no Year Net income
.
1 2020-2021 Rs. 1,29,43,756.2

Payback period = I / E Where,

P = Payback period of the project in a year

I = Investment of the project in a rupees. E = Annual net cash revenue in rupees.

P=I/E
= 2,14,75,000 ÷ 1,29,43,756.2
= 1.65 (About 1 year and 6 months 5 days)
Interpretation:
Initial capital investment of the project recovers in about 1 year 6 months and 5
days.

44
 Benefit Cost Ratio

Year Total Cost Gross D.F@12% NPW NPC

Returns
1. 3,57,04,377.5 2,46,59,175.7 0.8929 22,018,178 3,18,80,438.7
2. 1,49,46,238 2,59,57,028.1 0.7972 22,692,942.8 1,19,15,140.9
3. 1,57,00,827.9 2,73,23,187.5 0.7118 19,448,644.9 1,11,75,849.3
4. 1,64,95,133.1 2,87,61,250 0.6355 18,277,774.4 1,04,82,657.1
5. 1,73,31,243.8 3,02,75,000 0.5674 17,178,035 98,33,747.73
9,96,15,575.1 7,52,87,833.7

BCR =Present Worth of Benefits / Present Worth of Cost

= 99,615,575.1/ 7,52,87,833.7
= 1.3

The BCR ratio is 1.3

45
 Ratio Analysis
1)Calculation of liquidity ratio
A)Liquidity ratio =Current assets\Current liabilities
Here,Current assets = Gross income=Rs 3,02,75,000
Current Liabilities =Variable assets = Rs 1,67,22,214.9

Current ratio = 3,02,75,000\1,67,22,214.9

= 1.81

2)Calculation of Profitability ratio

Net profit ratio = (Net profit / Net sale ) x 100
Net Profit = Turnover – Cost of production
= 3,02,75,000- 1,73,31,243.8
= 1,29,43,756.2

Net sale =Gross income=3,02,75,000

Net profit ratio = (Net profit / Net sale) x 100
=( 1,29,43,756.2/ 3,02,75,000) x 100
=42.75
 Problems Faced by Vedant Agro Products

1) Seasonability of Raw Material - The prices of Soya bean and wheat were increased since the
increase from past 2 years. And agriculture is mainly depends on climate,Raw material required
for agro products processing are seasonable in nature and it affects the production process
Hence the cost of production is increased,due to seasonability of raw material.
2) Transportation Issues - Transportation of Perishable foods is the main problem facedby Vedant
agro products. It requires proper packaging therefore it increases cost of transportation
3) Advertisement - Though their products are popular in domestic market but due to less advertisement
it’s not reached out of local market deeply. Promotion is very important factor to develop the image
of company and advertisement plays an very important role topromote growth of the company.

4) High Competition - There are many Competitors of Vedant Agro products which affects the growth of
Industry. Company should study about the SWOT analysis, its Strength,opportunities,weakness,and
threats. It helps to widely develop the market and increase market share.
5) Lack of skilled labour – Skill is an ability to complete the task efficiently and in proper
manner. Vedant agro products face the problem of unskilled labours which leads to create
problems in the process of production.There is a lot of manual work carry out in the companywhich
required skilled workers.

47
 Suggestions to overcome the problems faced by the vedant agro products

1) Company should do a contract with famers for timely supply of soyabean and wheat.

2) Company should focus on an advertisement through various promotional activities viz.advertisement

through newspapers, F.M. channels, by some attractive offers.

3) Company should Store the Seasonal raw material which will give them continueavailability of raw
materials.

4) Company should meet the quality requirement of the clients to overcome over competitors and make
progress.
5) Distribution network should be increased to different regions in Nashik district as wellasMaharashtra so
as to get large consumer responses.

48
 Summary
a)Initial investment of Vedant Agro-Products Pvt. Ltd. is ₨. 2,14,75,000/-

b)Initial investment required for Soya Sauce is Rs 35,49,716/-

c)Raw material and packaging cost required for Soya Sauce of Vedant Agro- Products Pvt. Ltd. is
₨.1,11,80,800 /- and Rs 17,48,002/-

d)Total salary and wages expenses required for Soya Sauce of Vedant Agro- Productsis
₨.2,83,425.6 /- and Rs.3,82,728/-

e)From the study of cost of production of Soya Sauce, it was observed that the fixed cost per kg was
₨.1.40 /- and variable cost per kg was ₨.40.07 /- and per kg total cost of production was
₨.1,73,31,243.8 /-.

f)From financial study it was observed that gross income of Soya Sauce of Vedant Agro- Products Pvt.
Ltd. was ₨.3,02,75,000 /- and net profit was ₨.1,29,43,756.2 /-

g)The B:C ratio is 1.74, it shows that, when entrepreneur invests 1 rupee then he gets additional 0.74 Paise
from that investment. From B:C ratio analysis it was observed that B:Cratio was more than one, it reveals
that production of Soya Sauce is financially feasible for Vedant Agro Products.
 Conclusion
Out of total agriculture production that is 272 million tones, around 8percent of produce
get processed. It reveals that food processing have vast scope in agriculture.It was
reveals that the sufficient amounts of resources were available in the region of Vedant
Agro- Products and company were used in efficient manner.Different variable cost
components of company like raw material cost, electricity charges, repairing of
machinery and equipment, total wages, fuel charges, packaging cost. Out of those it
was observed that raw material component required highest cost The company has great
scope to improve their promotional activities to generate high sales.The company runs
well in small organization structure and made more profit.The margin of safety is
higher from BEP which indicates Vedant Agro-Products willmake profit even if there is
fall in production
MARKETING MANAGEMENT

51
 Channel wise Marketing cost of soya sauce
Marketing cost for channel I

Processor wholesaler Retailer consumer

Marketing channel I

Per kg cost incurred by processor

Table per kg cost incurred by processor

Sr. No. Particular Rate (Rs./kg)

1 Production cost ( Including 5% GST ) 41.48
2 Marketing cost
a. Packaging Cost 0.20
b. Transportation cost 0.20
c. Storage 0.10
d. Weighing, Loading & Unloading 0.10
e. Miscellaneous charges 0.05
Total marketing cost 0.65
Net Profit 27.87
3 Selling price 70
Per kg cost incurred by Wholesaler Table Per kg cost incurred by Wholesaler

Sr. No. Particular Rate ( Rs./kg)

1 Purchase price 70
2 Marketing cost
a. Labour charges 0.10
b. GST 5% 5
c. Transportation cost 0.10
d. Storage 0.10
e. Miscellaneous Charges 0.02
Total marketing cost 5.32
3 Margin 9.68
4 Selling Price 85

Wholesaler margin = selling price – (Purchase price + Total cost incurred)

= 85 – (70+5.32)
= Rs.9.68

53
 Per kg cost incurred by retailer
Sr. No. Particular Rate ( Rs./kg)
1 Purchase Price 85
s2 Marketing cost
a. Labour Charges 0.5
b. GST 5 % 5
c. Storage 0.20
d. Miscellaneous Charges 0.02
Total Marketing cost 5.72
3 Margin 9.28
4 Selling Price 100

Retailer margin = Selling price – (Purchase price + total cost incurred)

= 100 – (85 + 5.72)= Rs. 9.28

Price spread = Consumers purchase price – Producers selling price

= 100 – 70= Rs. 30
Producers share in consumers rupee:
Selling price of producer / purchase price of consumer × 100
= 70 / 100 × 100= 70%
 Price spread and profit margin from processor to consumer

Sr. Particulars Cost/ kg Profit Producer Price

No. margin share in Spread
(Rs./kg) consumer Rs.
Rupee
1 Processor 70% Rs.30
Production cost per kg 41.48
Cost incurred by the processor 0.65
Processor total price 42.13
Processor’s profit 27.87
Processor selling price 70
2 Wholesaler
Wholesaler’s purchase price 70
Cost incurred by Wholesaler 5.32
Wholesaler’s total price 75.32
Wholesaler margin 9.68
Wholesaler’s selling price 85
3 Retailer
Retailer’s purchase price 85
Cost incurred by the retailer 5.72
Retailer’s total price 90.72
Retailer’s margin 9.28
Retailer’s selling price 100
Marketing cost for channel II

Processor Retailer Consumer

Marketing channel II

Per kg cost incurred by processor

Sr. No. Particular Rate (Rs./kg)

1 Production cost ( Including 5% 41.48
GST )
2 Marketing cost
a. Packaging Cost 0.50
b. Transportation cost 0.10
c. Storage 0.20
d. Weighing, Loading and 0.20
Unloading
e. Miscellaneous charges 0.05
Total marketing cost 1.05
3 Net Profit 27.47
4 Selling price 70
Per kg cost incurred by
retailer
Sr. No. Particular Rate ( Rs./kg)
1 Purchase Price 70
2 Marketing cost
a. Labour Charges 0.3
b. GST 5 % 5.25
c. Storage 0.10
d. Miscellaneous Charges 0.03
Total Marketing cost 5.68
3 Margin 34.32
4 Selling Price 110

Price spread = Consumers purchase price – Producers selling price

= 110 – 70
= Rs. 40

57
 Price spread and profit margin from processor to consumer
Sr. Particulars Profit Producer
No. Cost/ kg Price
margin share in Spread
(Rs./kg) consumer Rs.
rupees
(Rs.)

1 Processor 63.63 % Rs.40

Production cost/kg 41.48
Cost incurred by the 1.05
processor
Processor total price 42.53
Processor’s profit 24.47
Processors selling price 70
2 Retailer
Retailer’s purchase price 70
Cost incurred by the retailer 5.68
Retailer’s total price 75.68
Retailer’s margin 34.32
Retailer’s selling price 110
Channel wise marketing efficiency in Vedant Agro-Products

Sr. No. Particulars Channel I Channel II

Value (Rs.) Value (Rs.)
1 Producer’s selling Price 70 70
2 Producer’s marketing cost 0.65 1.05
3 Producer’s profit 27.87 24.47
4 Consumer’s price 100 110
5 Price spread 30 40

59
 SWOT ANALYSIS OF VEDANT AGRO INDUSTRY

B. Weaknesses
1. Higher cost: The cost of Vedant
A.Strengths: Agro-Products is higher than market price.
1)Variety of products
2)Loyal customers 2.Poor marketing network in rural
3)Skilled Worker
area–No marketing network is established
4)Well-known Brand
5)Well-developed marketing strategy in ruralarea which is lead stolack of
awareness among rural people.

C) Opportunities
1.Ready to eat products and also in
processing food products.

2.Established and expanding market for D) Threats

Products. 1.

3.To generate employment.

Questionnaires
1. Do you use sumi’s Dark soya sauce?
Sr. No. of Consumers Percentage (%)
No. Particulars
1 Yes 25 80%
2 No 5 20%
Total 30 100%

Customer preference to Soya sauce

20%

80%

Yes No

From the above data it was observed that 80% consumers preferred soya sauce
and 20% consumers donot prefer soya sauce.
 1. What are the factors responsible for purchase of the Dark soya sauce ?
Sr. Particulars No. of Percentage
No. Consumers (%)
1. Low price of the 5 20 %
product
2. Good quality 7 28%
3. Easily Availability 6 24 %
4. Large quantity 7 28 %
Sub Total 25 100%

Factors responsible for purchase of soya sauce

20%
28%

28%
24%

Lowb price of Product Good Quality

Easily Availability Large Quantity

From the above data, it was observed that 20 % consumer purchase the soya sauce because low price of the
product, 28 % consumer purchase because large quantity of product, 24 % consumer purchase because easily
availability of product and 28
% consumer purchase because good qualityof product.
 From last how many years do you use the soya sauce?
Sr. No. of Percentage (%)
No. Particulars Consumers

1 1 year 5 20%
2 2 years 7 28 %
3 6 month 13 52 %
Total 25 100%

use of soya sauce

20%

52%
28%

1 Year 2 Years 6 Months

From the above data, it was observed that 20 % consumer use the Soya Sauce
sincelast 2 year, 28% from last 1 year, 52 % from last 6 month.
What packaging do you prefer for soya sauce?
Sr. No. of Percentage
No. Particulars Consumers (%)
1 PET Bottle 4 16 %
2 Can 11 44 %
3 Glass bottle 10 40 %
Total 25 100%
customer preference for packaging of soya sauce

16%
40%

44%

pet Bottle Can Glass Bottle

From the above data, it was observed that 16 % consumer purchase the soya Sauce with
can packaging, 44 % consumer purchase with PET bottle packaging, and 40% consumer
purchase withglass bottle packaging.
5.What are the attributes you consider important in Soya sauce?
Sr. No. Particulars No. of Consumers Percentage (%)
1 Safe 13 52%
2 Tasty 8 32%
3. Versatile 4 16%
Total 25 100%
The attributes consumer consider important
in soya sauce

16%

52%
32%

Safe Tasty Varsatile

From the above data, it was observed that 52 % of total consumers consider safety is an
importantattribute in Soya Sauce, 32 % consumer consider taste as important attribute in
Soya Sauce, and 16% consumer consider Soya Sauce as versatileproduct.
6.Which media of advertisement is more effective according to consumers?
Sr. No. Particulars No. of Consumers Percentage (%)

1 Posters, Banners 14 56%

2 Newspaper 4 16%
3 Internet 7 28%
Total 25 100%

Mediums of advertisement effec-

tive according to consumer

28%
56%
16%

Psters,Banners Newspaper Internet

From the above data, it was observed that 56 % of total consumers are influenced by
hearing/seeing advertisement through poster and banners.Posters and banners play
important role in the advertisement of the product.
7.Satisfaction level of customer regarding Soya sauce?
Sr. No. Particulars No. of Consumers Percentage (%)
1 Highly Satisfied 9 36%
2 Satisfied 9 36%
3 Not Satisfied 7 28%
Total 25 100%

Satisfaction level of customers regarding soya

sauce

36%
28%

36%

Highly Satisfied Satisfied Not Satisfied

From the above data, it was observed that 36 % of total consumers are highly Satisfied 36%
are satisfied and 28 % are not satisfied with the product
 Survey of wholesalers
For the wholesaler’s survey conducted for the product soya sauce. 4 wholesalers were surveyed.
1. Do you require quick delivery of stock during season?
Sr. Particulars No. of Percentage
No. Wholesalers (%)
1 Yes 4 100%
2 No 0 0%
Total 4 100%

From the above data, it was observed that all wholesalers of Vedant Agro- Products are satisfied withthe delivery of products.
2. Are all orders of various quantities provided to you as per the requirements?
Packages provided as per requirement?
Sr. No. Particulars No. of Wholesalers Percentage (%)
1 Yes 4 100%
2 No 0 0%
Total 4 100%

From the above data, it was observed that the packages are provided to Wholesaler as pertheirrequirement.
3. Which mode of payment is used by wholesalers?
Mode of Payment used by wholesaler:
Sr. Particulars No. of Percentage
No. Wholesalers (%)
1 Cash 2 50 %
2 Credit 2 50 %
3. online 0 0%
Total 4 100%
 Mode of paymentby wholesalers

N=4

50% 50%

cash credit
Mode of payment used by wholesalers
From the above data, it was observed that 50 % wholesaler done payment by cash and
50% done by credit. Large wholesalers pay by cash after delivery of product.
4. Do you return unsold products quantity to company?
Sr. Particulars No. of Percentage
No. Wholesaler (%)
1 Yes 0 0%
2 No 4 100%
Total 4 100%

From the above data, it was observed that none of the wholesalers returns the
unsoldquantityto company.
5. Do you have sufficient storage facilities for the products?
Sufficient storage facilities for the product :

Sr. No. Particulars No. of Percentage

Wholesaler (%)

1 Yes 4 100%
2 No 0 0%
Total 4 100%

From the above data, it was observed that all the Wholesalers
have sufficient storagefacilities for the products .
 Survey of Retailers
Retailers survey was conducted for the product Soya sauce among 5 Retailers
1. Do you require any quick delivery of stock during season?
Quick delivery of stock during season

Sr. No. Particulars No. of Retailers Percentage

(%)
1 Yes 5 100%
2 No 0 0%
Total 5 100%
From the above data, it was observed that quick delivery of stock during the season isrequired

2. Are all orders are provided as per requirement per your requirement?
Packages are provided to retailer as per requirement
Sr. No. Particulars No. of Percentage
Retailers (%)
1 Yes 5 100%
2 No 0 0%
Total 5 100%

From the above data, it was observed that packages are provide as per
required of all theretailer.

72
 3. Payment mode used by Retailers?
Payment mode used by retailers

Sr. Particulars No. of Percentage

No. Retailer (%)
1 Cash 5 100%
2 Credit 0 0%
Total 5 100%

From the above data, it was observed that mode of payment of 100% of retailers
use cashforpayment of product.
 Problems and suggestions

Problems:
a.Problem Faced by Wholesaler:

1.Sometime delay in delivery due to transportation Problem.

2.Delay in payment from, retailer.

b.Problem faced by retailer:

1.Due to unawareness about the product, customers ask for specific brand.

2.Sometime shortage of material.

c.Problem faced by company:

1.The Brand awareness among the people is less.

2.Market position of the product is not satisfactory other than local market area.

3.Less advertisement and promotional activities are adopted by company.

74
Suggestions:
1.Attractive packaging of products should be done and use of packaging materials likepackets, mini
bags etc. can be done.

2.More advertisement of products through media like local channel, e-marketing etc. canbedone.
And increasing marketing strategy of product.

4.Outlet should be at prime location in the city to increase sales and number of outletshould be start.

5.The website of company should be developing so it may possible to connect more no ofconsumer
at minimum cost.
6.Company should adopt more promotional activities to create awareness among thepeople and
to increase sale.Company should provide quick delivery of product when demanded by Retailers

75
 Summary and conclusion

summary:
1. In first marketing channel total marketing cost of processor was Rs.41.48. And profit
margin is27.87.
2. The total marketing cost of wholesaler was Rs.70. and profit margin was Rs.9.68.
3. The total marketing cost of retailer was Rs.85. and profit margin was Rs.9.28.
4. Price spread was Rs.30 and producer’s share in consumer rupee was 70%.
5. In second marketing channel total marketing cost of processor was Rs.41.48. And profit margin
is27.47.
6. The total marketing cost of retailer was Rs.70. and profit margin was Rs.5.68.
7. Price spread was Rs.40 and producer’s share in consumer rupee was 63.63%.
8. From study of consumer behavior it was revealed that 80% customers preferred soya sauce.
While20% consumer do not prefer soya sauce
9. It was observed that 17 % consumer purchase the soya sauce because low price of the
product, 23 % consumer purchase because large quantity of product, 20 % consumer
purchase because easily availability of product and 40 % consumer purchase because
goodquality of product.
10.It was observed that 7 % consumer use the Soya Sauce sincelast 2 year, 5 % from last 1 year, 60
% from last 6 month.
 11.It was observed that 36 % consumer purchase the soya Sauce with can packaging, 33 % consumer
purchase with PET bottle packaging, and 27% consumer purchase with glass bottle packaging.
12.It was observed that 43 % of total consumers consider safety is an important attribute in Soya
Sauce, 27 % consumer consider taste as important attribute in Soya Sauce, and 30
% consumer consider Soya Sauce as versatile product.
13.It was observed that 47 % of total consumers are influenced by hearing/seeing
advertisement through poster and banners.Posters and banners play important role in the
advertisement of the product.
14.It was observed that 47 % of total consumers are highly Satisfied ,30% are satisfied and 23 % are not
satisfied with the product
15.It is observed from the survey of wholesalers that they are highly satisfied with the timely
deliveryof orders, also the quantities are provided according to their orders. The payment is done 50%
by cash and 50% by credit, wholesalers have 100% sufficient storage facilities.
16.It was observed from survey of retailers that they are highly satisfied with the timely
delivery of orders, also the quantities are provided according to their orders, payment is done 100% by
cash
Conclusion:

From the study it was concluded that Vedant Agro Industry have 2 marketing channels and Company
gets Same profit margin in channel both Marketing Channel.Vedant Agro Industry don’t emphasize
much more on advertisement and promotional activities and hence in order to boost sales and
brand recognition they must adopt the various promotional activities.Though having limited distribution
area Vedant Agro Industry have strong image in theirareaof distribution due to the quality of product and
word of mouth is doing well for Vedant AgroIndustry.From the study it was concluded that all the
Wholesalers and Retailers are also satisfiedwith the service provided by Vedant Agro Industry
regarding quality of product, Deliveryschedulesand terms of service
PHOTO GALLERY
 Entrepreneurial Development Programme

Resource Person and Topic Information Photo

Mr. Manohar Shete Entreprenership devlopment

progarmme (EDP) means to
How to select right business develp entrepreneurial abilities
option and business among the people or it refers
opportunities in organic sector to devlopment and plolishing
of entrepreneurial
incalculation skills into a
person establish and
successfully run their
enterprise needed to

Mr. Hemraj Rajput sir Current scenario of

Entrepreneurial Opportunities horticulture and processing .

in fruit and vegetable Challenges in processing
processing
industry .Scopes in processing
industry . Food regulating
bodies .Processing techniques
 Resource Person and Topic Information Photo

Dr. Anil phadke Current scenario of

poultry industry .
poultry farming opportunities Importance of contract
and challenges broiler farming
Challenges in contract
farming .
Poultry feed
Hatchery and structure
for poultry farms.
Bird flu

Mr. Sanjay Goyal General commercial aspects

registrations required for
Essentials of financial company.
management in agribusiness accounts
taxation
GST
 Resource Person and Topic Information Photo

Mr. Mukund Kulkarni 1.Information about

Potential of agricultural import and export 2.Types
commodities in international
trade
of codes
3.Export procedures and
documents needed
Mr. Akshay Patil Information about FPC.
Establishment of FPC
Basic Information Of Farmer Information about Krushak
Producer Company mitra agro services
Difference between FPO and
FPC and Producer company

Mr. Somnath Kharat 1.Current scenario of dairy

industry .
Opportunities of dairy 2.Opportunities in dairy
industries industry .
3.Structure of dairy business .
4.Challenges in diary industry