A

PROJECT REPORT

ON

“V A DISTRIBUTORS”

PUTHAN PURA, AYSHA MANZIL, VENGARAKULAM,

TARUR PO, ALATHUR, PALAKKAD – 678 554

 Project at a Glance

1. NAME OF THE CONCERN : V A DISTRIBUTORS

2. CONSTITUTION : PROPRIETORSHIP.

3. NAMES OF THE PROPR. : P S SABAIR

4. LOCATION : PUTHAN PURA, AYSHA MANZIL,

VENGARAKULAM, TARUR PO, ALATHUR,

PALAKKAD – 678 544

5. CONTACT NO : MOBILE: 9846062449.

6. ACTIVITY : ROOT SALES & DISTRIBUTIONS.

7. COST OF PROJECT AND MEANS OF FINANCE

COST OF PROJECT

OMNI CAR Rs. 1,00,000

WORKING CAPITAL Rs. 1,00,000

STOCK Rs. 3,00,000

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Total Rs. 5,00,000

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MEANS OF FINANCE:

The Total Project cost of Rs. 5 Lakhs, is proposed to be financed as follows:

BANK TERM LOAN Rs. 5,00,000

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Total Rs. 5,00,000

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INTRODUCTION:

“V A Distributors” decided to start root sales in the village areas. The village
areas in palakkad face lack of goods availability. So, the Prop decided to start root
sales business. It will help the development of those villages and his business. It is a
good initiative take by him to developing those areas & villages. The Prop Mr P.S.
Sabair worked in sales department in gulf countries. He has more than 27 years of
experience in sales. He has well experience in sales. His experience in sales helps to
develop his business.

Distributor is the keystone to FMCG business sector. FMCG

distributor generally has exclusive rights of distributing a set of products in a defined
geographical location. He will be responsible for the redistribution of the products,
market coverage and retail penetration. Few a times, distributor is appointed to serve a
particular clientele base such as canteens, hotels, restaurants etc.

 He purchases/stocks products in bulk quantity from the manufacture and

distribute/sell them to retailers in small quantity.

 He takes orders from the institutions & retailers and ensures quality and on-time
delivery of products.

 He maintains products stock and the requirement of outlets are managed

through their own stock.

 He provides needed finance for allowing credit to the retail market.

 He expands the retail market (by opening new outlets) as well as the retail
penetration of various products.
  He does field level marketing activities like in shop and H2H (Human to Human
promotion) etc.

 He helps in minimizing consumer complaints and resolving them.

So basically it was the broad role of the distributor in FMCG Industry.

Becoming distributor of FMCG products is a profitable option.

FMCG distribution model has different challenges depending upon

Metro/Urban/Rural geography. FMCG distribution is the most robust & last mile
distribution model which exists in India. Model is simple any FMCG company will
supply goods from its Warehouse to the distributor’s warehouse. Distributor will have
his own sales man who will go to the market on a predetermined route to take orders
from outlets/kirana shops in market. In the evening the sales man will come back with
the order quantity for each outlets on that route. Generally next day (n+1, n is here
the day when orders are taken from the market) the supplies are made by the
distributor for orders taken today. At many places its N+2 days also for supply
depending upon the systems set/market complexities. When supplies are made in
market, the distributor’s vehicle will have two people along with it to handover the
goods & collect payments for the previous bill. Generally the payment by retailers is
made after one week up to 70% of retailer will work with one week credit. Credit is
important in market to get business; otherwise the order quantity placed by the retailer
might come down. In every supply, distributor will collect the payment of last supply.
In case there are any damaged or expiry goods at the retailer then that is also collected
back by the distributor in every supply. The amount of expiry, damaged goods
collected from market depends on norms of company.
AREA COVERS:

“V A DISTRIBUTORS” planning to cover the whole palakkad district. It covers

the area like Mannarkad, Kongad, Pulapetta, Manazhi, Thenkara, Anamoodi,

Payyamadam and Azhiyennur etc. They also plan to extent the area it covers.

OBJECTIVES:

1. Product Availability:

The first objective is to make available the product to the consumer who wants to buy it. The

availability has two aspects – the desired level of coverage in terms of appropriate retail outlets

and secondly, the positioning of the product within the store. Product availability is important

for consumer convenience goods, where customer does not wait to buy a particular brand.

However, for unique and important products immediate availability is less critical.

2. Meeting Customers’ Service Requirements:

To meet the service requirements and create differentiation over competitors, channels

become critical. Some of the service requirements may include – order cycle time (how long it

takes to receive, process and deliver an order), dependability (consistency and reliability of

delivery), communication between buyer and seller (to sort out problems spontaneously),

convenience ((to accommodate the special needs of different customers), and post-sale

(installation, user training, help lines, repair, and spare parts availability).

3. Promotional Support:

It includes strong support from the channel member for the firm’s product, including the use

of local media, in-store displays, and cooperation in special promotion events. This kind of
support is especially important in case of highly competitive market phenomenon, complex

and expensive consumer durables or industrial goods, or a differentiator defender is trying to

attain a competitive advantage.

4. Market Information:

Since intermediaries are in the marketplace and near to consumers they are the best and first

hand source of getting feedback with regard to sales trends, inventory levels, competitors’

moves and customers’ reactions.

5. Flexibility:

A flexible channel is one where it is relatively easy to switch channel structures or add new

types of middlemen without generating costly economic or legal conflicts with existing channel

members.

MANAGEMENT:

Mr. P S SABAIR is the promoter and driving force of this organization. He is an

experienced and well-known figure in this field. He has 27 years sales experience. His

experience and hardworking nature would be a great backing for the business. The unit is also

employing good dedicated and experienced staff. A good blend of youth and experience can

be availed. Therefore the management is safe in his hands.

CONCLUSION:

It can be seen from the facts and figures described above that the proposed is

technically sound, financially viable and economically feasible. The promoters are sincere and

serious in implementing this project and he expect unstinted support, encouragement and co-

operation from all financial institutions, banks, industries department, government authorities,

suppliers, employees, general public etc. The unit and the promoters would obey and respect

all the existing rules and regulations of the country and will always function as responsible

corporate citizens. The unit would try to discharge its social responsibilities by way of

providing employment to the jobless, taking care of their welfare, paying taxes both direct and

indirect, protecting the area from pollution etc. The promoter in turn expects a reciprocal

treatment from the society.