Summer Internship Report

Annexure-III
Jaypee Business School

A Constituent of Jaypee Institute of Information Technology
(Declared Deemed to be University u/s 3 of UGC Act)
A-10, Sector 62, NOIDA, 201 307, INDIA, www.jbs.ac.in
Market Study and Industry Analysis

Corporate Internship Report
Internship Report submitted as a partial requirement for the award of the two year
Master of Business Administration Programme
MBA 2014-16
Name: ABJESH VASUDEVAN
14609003
Corporate Internship Supervisor

Name: Samarth Chudasama
Contact details: +91 8698923739
14th Floor, 9A Building, DLF Cyber City,
Phase-III, DLF City,
Gurgaon, Haryana - 122002
JBS-Faculty Supervisor: DR. G. K. AGGARWAL

Start Date for Internship: 16-APRIL-2015
End Date for Internship: 11-JUNE-2015
Report Date: 23-JUNE-2015
Self Certification by the Intern
I hereby certify that I, Abjesh Vasudevan have successfully completed my internship with CARGILL
INDIA PVT. LTD. in the month of JUNE2015 from (16 th APRIL to 11th JUNE 2015).
This is also to certify that this report is an original product and the facts and figures used in this
project are authentic and reliable as per my knowledge. I am held responsible for the veracity of
such facts and figures.
Name: ABJESH VASUDEVAN

Signature:
Date : 18-06-2015
2|Page
TABLE OF CONTENTS
ACKNOWLEDGMENT
4
EXECUTIVE SUMMARY
COMPANY PROFILE
6-13
INDUSTRY ANALYSIS
14-20
FINANCIAL ANALYSIS
21-29
DETAILED STUDY ABOUT PROJECT

30-44
KEY LEARNINGS
45
CONCLUSION & RECOMENDATIONS
46
TERMS AND TERMINOLOGIES

48
REFRENCES
4749
3|Page
ACKNOWLEDGEMENT
It would be wise to commence this report with an expression of gratitude towards all those people
who have played an indispensable role in the accomplishment of this project by providing their
valuable guidance.
I would like to take this opportunity to acknowledge and thank Cargill India Pvt. Ltd. for
providing me this golden opportunity to associate my Summer Internship Project with an
organization of worldwide repute.
I extend my gratefulness to Mr.Lalit Kumar Sharma, Regional Sales Manager and Mr. Samarth
Chudasama, Area Sales Manager for their help and guidance in various capacities which have
been extremely proficient in getting the best out of me by sharpening my rough edges from time
to time.
I am deeply indebted to my faculty guide, Dr.G.K.Aggarwal whose help, encouragement and
stimulating suggestions helped me in all time of research.
I would be failing in duty if I do not acknowledge the gratitude to all the employees of Cargill
India Pvt. Ltd. who motivated me
a lot in carrying out this project and whose valuable
suggestions, and kind supervision helped me in the successful completion of this work.
4|Page
EXECUTIVE SUMMARY
The report is divided into four sections.
It begins with the Introduction to the organization- Cargill and various information related to the
firm such as its organogram, Products provided by Cargill and also its vision, mission and goal.
The second section is a detailed industry analysis of the FMCG Industry (Fast Moving Consumer
Goods Industry) which shows the market size, market break up, current scenario and Trends
followed in the industry. It also covers the information related to the major players of the industry
and a detailed SWOT Analysis of the FMCG Industry.
The third section covers the financial analysis of ITC and HUL which are currently considered to be
the top 2 brands in FMCG industry. This Financial Analysis reveals its financial performance during
its past years. The tools used for financial analysis are ratio analysis and financial analysis.
The fourth section contains the detailed study of the project - Market Study and Industry
Analysis.
5|Page
COMPANY PROFILE
Cargill delivers food, agriculture, personal and commercial products & services to the entire world.
Along with farmers, shoppers, authorities and communities, we assist individuals prosper through the
use of our skills and experience of 150 several years. We've got 152, 000 workers throughout 67
countries who're dedicated to feeding the planet in a responsible way, lowering ecological effect and
improving the communities where most of us reside and work.
Cargills operations throughout India started in 1987. We employ more than 2,000 employees working
in offices and plants across the country and have a network of warehouses and depots.
Cargill offers a range of products and services:
We process, refine and market imported and indigenous vegetable oils
Serving food industry customers with vegetable oils, fats, blends and bakery shortenings
We offer high quality food ingredients to serve food manufacturers and food service industry
We originate, process, store, trade and market a wide range of agricultural commodities such
as grains, oilseeds, sugar and cotton
We offer premix, compound feed and therapeutic care products to nourish animals
We provide risk management and financial solutions
We offer freight solutions and serve our industrial customers with energy commodities and
metal products
Vision
Our vision is to be the leading player in Indian edible oils market and creating a distinctive
value for all stakeholders.
Mission
We will develop and deliver value added products, which exceed statutoryrequirements to satisfy
our internal and external customers, by creating a cultureof continuous improvement and
will establish dominant position in ours chosenmarket, by achieving competitive advantage in all
functions and building and retaining a high performing customer-focused team.
Approach
6|Page
Our approach is to be trustworthy, creative and enterprising .
Measures
Our measures are engaged employees, satisfied customers, enriched communities and profitable
growth.
HIERARCHY STRUCTURE OF CARGILL INDIA PVT LTD. (Organogram)

Chairman
Director
National sales manager
Regional business manager
Zonal / Regional sales manager
Area sales manager
Senior sales officer
Sales officer
Trainee sales officer
Interim sales representative

7|Page
Gregory R. Page
Executive Chairman of the Board
Corporate Vice President, Operations
David W. MacLennan
President and Chief Executive Officer
Paul D. Conway
Emery N. Koenig
Development
Officer
William A. Buckner
LeighAnne Baker
Patrick E. Bowe
Dave Buchanan
David E. Dines
Michael A. Fernandez
John E. Geisler
Todd B. Hall
Alan Willits
Platform Leader
Senior Vice President
Peter Van Deursen

Platform Leader
Officer
Frank J. VanLierde
Platform Leader
Corporate Vice President and Chief Information
R. Wayne Teddy
Corporate Vice President
Corporate Vice President, Corporate Affairs
Joe Stone
Brian Sikes
Platform Leader
Platform Leader
K. Scott Portnoy
Jayme D. Olson
Corporate Vice President and Treasurer
Corporate Vice President, Human Resources
Paul Naar
Platform Leader
Senior Vice President
Christopher P. Mallett
Corporate Vice President, Research and
Marcel H. M. Smits
Executive Vice President and Chief Financial
Ruth Kimmelshue
Platform Leader
Vice Chairman and Chief Risk Officer
Thomas J. Intrator
Platform Leader
Vice Chairman
Thomas M. Hayes
Laura Witte
Corporate Vice President, General Counsel and
Corporate Secretary
Distributor salesman
CARGILL MANAGEMENT
8|Page
Businesses of Cargill
Cargill is a provider of food, agricultural, risk management products and various other services in
67 countries globally. Cargill has more than 80 businesses organized in around seven major
segments which are as following:
Agriculture Trading & Processing - Cargill Tries to connect different types of

producers, users of grains,oil seeds and various other agricultural commodities through the
process starting from originating to distribution of services.
Food Ingredients and Products - Cargill serves new food applications and food &
beverage
ingredients
to
different
food
service
companies
and
Food
&
Beverage
Manufacturers.
Meat Poultry and Eggs
Farmer Services - Cargill Provides Customized farm products and services to different
crop and livestock producers worldwide.
Animal Feed And Nutrition
Energy and Industrial
Financial -
Cargill Provide its customers and even their own businesses with risk
management and financial solutions in different type of world markets.
9|Page
Product Portfolio
Leonardo Olive Oil is the latest entry in

the product portfolio of Cargill India.
This
brand
is
currently
the
market
leader with a 30% +market
share.
Leonardo is available in 3 forms1. EVO

2. Pure
3. Pomace
Gemini is the pioneer in Sunflower oil

category.This brand has a wide range of1.
2.
3.
4.
5.
6.
Soyabean Edible oil

Groundnut Edible oil
Cottonseed oil
Filtered Groundneck Edible oil
Mustard oil
Vanaspati
Nature fresh range of oils are available in

following forms1.
2.
3.
4.
5.
6.
7.
Refined Soyabean Oil

Sunflower oil
Kachi Ghani pure mustard oil
Nature fresh olive oil
Nature fresh Shakti
Nature fresh Palmolein Oil
Nature Fresh purita
Nature Fresh Chakki Atta is available in @

different sizes of 5 kg and 10 kg.
10 | P a g e
Sweekar is considered to be the leading

premium Sunflower Oil Brand across the
country.
Rath can be termed as a Trusted heritage

Vanaspati brand because of its 50 years of
presence.
In the hydrogenated fats category,

Sunflower Vanaspati is termed as an iconic
brand.
Distribution Channel of Cargill India Pvt. Ltd.

11 | P a g e
Manufacturer
C & F Depot
Super Stockiest
Distributor
Wholesaler
Retailer
Customer
12 | P a g e
STP (Segmenting,targeting and positioning of Cargill)
Segmenting
Manufacturers who need superior quality ingredients, services or

expertise
Targeting Group
Foods & beverages manufacturers, animal feed producers,

agricultural commodities producer, etc.
Positioning
A world class, superior quality food processing and services

company
13 | P a g e
Industry Analysis
Fast Moving Consumer Goods
Fast Moving Consumer Goods (FMCG) are those products which are lower in cost and they have a
quick turnover ratio. FMCG products are the products that can be replaced within an year. FMCG
generally includes a wide range of frequently purchased products such as cosmetics, soap, oil,
toiletries, tooth cleaning products, detergents and shaving products .It also includes certain nondurables such as bulbs, glassware, paper products, batteries, and plastic goods. FMCG may also
include consumer electronics pharmaceuticals, chocolate bars packaged food products, soft drinks,
and tissue papers.
FMCG sector in India is the fourth largest sector of the Indian economy and this sector
creates
employment for more than three million people in various downstream activities. Its principal
constituents are Personal Care, Household Care, and Food & Beverages.
Size of the consumer durables market in India
Consumer durables market is expected to double at 14.8 per cent CAGR to US$ 12.5 billion in FY15
from US$ 6.3 billion in FY10.
The increasing purchasing strength plus the growing affect with the usage of social media in day to
day life helped the consumers of India to splurge on various good things. A study completed yes
14 | P a g e
Bank and a leading company states that the consumer spending inside Of India will likely
quadruple to US $ 4.2 trillion by 2017.
India has the potential to become the world's largest middle class consumer market which would
be having approximate consumer spending of US$ 13 trillion by 2030.
On the back of better incomes and increasing affordability, the consumer durables market is
anticipated to expand at a compound annual growth rate (CAGR) of 14.8 per cent to US$ 12.5
billion in FY15 from US$ 7.3 billion in FY12.
Online retailing, both direct and through marketplaces, will grow threefold to become a Rs 50,000
crore (US$ 8.06 billion) industry by 2016, as per rating agency Crisil. Also, the growth of internet
retail is expected to boost offline retail stores.
Trends in FMCG revenues over the years in India
The Compound annual growth rate of the FMCG sector is expected to increase to 14.7%. to touch
110.4 billion US dollars till 2020.The rural FMCG
market is anticipated to increase at a CAGR of
17.7% to touch 100 billion US Dollars till 2025.

FMCG industry is continuing to grow with a good annual average of 11 per cent over the last
decade. Food products is the primary portion, constituting 43 % of the whole industry. Personal
care (22 %) as well as fabric care (12 %) appear subsequent with regard to industry share. Growing
attention, simpler access, as well as changing life styles are the important thing which helps in the
growth of the industry.
15 | P a g e
Market break-up of Indian FMCG industry
FMCG industry is continuing to grow with a good annual average of 11 per cent over the last
decade. Food products is the primary portion, constituting 43 % of the whole industry. Personal
care (22 %) as well as fabric care (12 %) appear subsequent with regard to industry share. Growing
attention, simpler access, as well as changing life styles are the important thing which helps in the
growth of the industry.
The federal government associated with India's policies as well as regulatory frameworks such as
approval of 51 per cent foreign direct investment (FDI) in multi-brand and relaxation of license
rules are also responsible for the growth of the Industry
.The federal government has also
amended the Sugarcane control order, 1966, as well as substituted the Statutory Minimum Price
(SMP) associated with sugarcane having Fair Remunerative Cost (FRP) along with the
State
Advised Cost (SAP).
16 | P a g e
Per-capita income in India
There exists a large amount of opportunity with regard to expansion in the FMCG industry via rural
market segments because it is believed that the demand will increase as more no. of companies
penetrate in the market. Also, with the increasing per capita income of the people with time, which
is estimated at a CAGR Rate of 7.4% in the time period of 2013-19, the FMCG industry is
anticipated to experience a major expansion.
17 | P a g e
Porters Five Forces(FMCG Industry)
Threat Of New Entry
Under the FMCG Industry, there are no proper measures to control the number of new
Entrants in the market

New Entrants offer tough competition because of cost effectiveness. Hence, we can say that
potential entry of new firms is more viable.

New Firms can easily enter this industry because of low resistance and the complex
structure of the industry.
Buyers power
Bargaining power of the customers is also very high in FMCG Industry because of the low
switching costs associated between FMCG Goods.
Customers are usually never reluctant to try and buy new things off the shelf.
Suppliers power
18 | P a g e
Bargaining power of the suppliers of raw materials and intermediate goods in FMCG Industry
is just medium.
Substitute suppliers are available in ample numbers and even the raw materials are also
readily available homogeneous in nature.

No Monopoly situation arises because the suppliers have to fight between each others too.
Threat of substitutes
The Never ending needs of the customers can never be met by a single firm alone,
Customers have the option to choose one substitute amongst many available substitutes if
he is not satisfied by the good.

Higher consumers expectation arises because of the wide range of choices.
Competitive Rivalry
Rivalry amongst the competitors of the FMCG Industry is very fierce.
FMCG Industry is highly saturated and the competitors available try to snatch their market
share.
The intensity is very high because Market Players use all sorts of tactics from intensive
advertisement campaigns to promotions, price wars etc.
Top Companies which deals in the FMCG Sector in India

According to the study performed by experts, the top five FMCG brands of India can be as following :
1. Hindustan Unilever Ltd.-HUL
2. ITC (Indian Tobacco Company)
3. Nestle India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
19 | P a g e
Swot Analysis of FMCG Sector

Strengths:
Operational costs are low.
Both in urban and rural areas, distribution networks are well established.
Well-known brands of the market are currently active contributors for FMCG sector.
Weaknesses:
Especially in small sectors, there is very low scope of investing in technology and in
achieving economies of scale
Export level is low at present.
Opportunities:
High Competition is present in all segments of operation.
Untapped rural market
Rising income levels, i.e. increase in purchasing power of consumers
Acquiring other companies.
Growing Population in our country, which increases demand simultaneously.
Export potential
20 | P a g e
High increasing consumer goods spending
Threats:
"Me-too products, which illegally mimic the labels of the established brands.
Removal of restrictions on import which is resulting in replacement of domestic brands with

others.
Demand in rural areas is slowing down.
Tax and regulatory structure
Financial Analysis
Cargill India is a privately owned company which is not listed in India thus its financial data was
unavailable. As per the guidelines mentioned a similar company of the FMCG Industry was taken
and a financial analysis was done the same company and its 1 competitor. The companies chosen
are ITC and HUL. For these 2 companies, different financial ratios were calculated and were
compared for 2 years.
Calculation of the Ratios

Financial analysis is being done using the following types of Ratios-
Liquidity Ratios
These Ratios can tell us the companys ability to repay the loans which are short termed from the
cash available with the firm.
21 | P a g e
Current Ratio Current Ratio defines the companys ability to meet the obligations in the
short term. This Ratio will tell us whether the company will be able to meet the requirements
in the next 12 months or not.
Current Ratio = Current Assets/Current Liabilities

Current Ratio
ITC
HUL
1.81
0.98
2013
1.81
1.02
2014
2
1.5
Current Ratio ITC
Current Ratio
HUL
0.5
0
2013
2014
Interpretation
In 2013 and 2014, ITC has its liabilities 1.81 times.

In 2013 and 2014, for every Rs. 1 in current liabilitiesof ITC, ITC has an amount of Rs. 1.81 in
current assets.
In 2013, HUL has its liabilities more than assets showing that HUL is in debt.
Quick Ratio It is also referred to acid-test ratio or Quick assets ratio, this ratio measures the
power of a firm to match its short-run debts by utilizing its most liquid possessions (assets which
can be converted in cash quickly).
It describes the companys Strengths & weaknesses when it comes to its capability to convert
possessions into instant cash even if it was on a short notice.
22 | P a g e
Quick Ratio = (Cash & Cash equivalents + Short Term Investments + Accounts
Receivables) / Current Liabilities
Quick Ratio
ITC
HUL
1.09
0.65
2013
1.17
0.63
2014
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Quick Ratio ITC

Quick Ratio HUL
2013
2014
Interpretation
Higher the Value of the ratio will be, better will be the condition of a corporation/Company.
Commonly accepted Quick ratio can be 1 & a situation of Quick ratio of less than 1 isn't
considered great as company will
never be able to meet its current liabilities at that particular time.
Profitability Ratios
These are used to assess the ability of a particular business to generate earning in a particular
period of time, as compared to the various costs associated and various other expenses.
Return On Assets (ROA)
This will help us know about the returns earned on the total assets of the firm which are
employed in the business.
Return on assets = (Net Income + Interest Expenses) / Average Total

Assets
23 | P a g e
Return on Assets
ITC
HUL
0.31
0.377
2013
0.604
0.377
2014
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
Return on Assets
ITC
Return on Assets
HUL
2013
2014
Interpretation
In 2013 and 2014, ITC has a profit of Rs. 3.1 and 6.04 for asset of Rs.1.
In both 2013 and 2014, HUL has a profit of Rs. 3.77 for asset of Rs.1.
Return on Equity (ROE)

The Return On Equity will help us know the returns earned by the capital which is provided
by the stockholders / Equity holders in the form of Equity.
Return on Equity = Net Income / Average Common Equity
Return On Equity
ITC
HUL
1.3
-50.95
2013
1.34
19.32
2014
24 | P a g e
40
20
0
-20
2013
-40
2014
Return On Equity
ITC
Return On Equity
HUL
-60
Interpretation
In 2013, The return on equity is in negative for HUL thus it was non beneficial for HUL.
In 2014, The return on equity is 19.32 for HUL.
Activity Ratios
Activity Ratios are also known as turnover ratios, these ratios help us to know the efficiency of a
corporation to generate revenue by converting the production into sales or cash.
Capital Intensity Ratio
Capital Intensity Ratios measures the Amount of Capital needed per dollar value.
Capital Intensity Ratio = Total Assets / Sales
Capital Intensity
Ratio
ITC
HUL
25 | P a g e
201
3
201
4
0.8
0.42
0.83
0.46
1
0.8
Capital Intensity
Ratio ITC
0.6
0.4
Capital Intensity
Ratio HUL
0.2
0
2013
2014
Interpretation
The Higher the Capital Intensity Ratio, more will be the assets needed by the firm
as compared to the company with lower capital Intensity Ratio, to generate an
equal amount of sales for the firm.

Asset Turnover Ratio
Assets turnover ratio actually measures the efficiency of a corporations usage of its assets
for its product sales. It measures how efficiently company is promoting its sales by using
the assets effectively and efficiently.
Asset Turnover Ratio = Revenue / Average Total Assets
Asset Turnover
Ratio
ITC
HUL
20
13
1.21
2.36
26 | P a g e
20
14
1.19
2.15
2.5
2
Asset Turnover
Ratio ITC
1.5
1
Asset Turnover
Ratio HUL
0.5
0
2013
2014
Interpretation
We can say that Higher the Asset Turnover Ratio, better it will be.
Higher the Asset Turnover Ratio will be, it will tell us that the company is able to produce
more revenues per dollar of its assets.
And if it is low then, it is the sign for the company to utilize its assets in a more
efficient manner or sell them.
Leverage Ratios
Debt Equity Ratio Debt Equity Ratio is also called as Financial ratios.This type of
ratios help us to know the proportion of debt and equity used by the company to
finance its assets. This ratio measures a firms financial standing, in which it also
helps us to know whether an entity will be able to pay off its debts or not.
Debt equity ratio = Liabilities / Equity
27 | P a g e
Debt Equity
Ratio
ITC
HUL
4.13
8.11
2013
4.16
52.31
2014
60
50
40
Debt Equity Ratio

ITC
30
Debt Equity Ratio

HUL
20
10
0
2013
2014
Interpretation
In 2014, for HUL, the Debt equity Ratio was 52.31 which is the biggest of all values
captured here.
Total Debt Ratio
This Total debt Ratio can help us to know any companys extent of taking leverage
Total Debt Ratio = Total Debt / Total Assets
Total Debt Ratio

ITC
HUL
28 | P a g e
2013
2014
0.76
0.75
1.007
0.98
1.2
1
0.8
Total Debt Ratio

ITC
0.6
Total Debt Ratio

HUL
0.4
0.2
0
2013
2014
Interpretation
In 2013 and 2014, It shows that for ITC Rs. 76 and 75 is in debt for every Rs. 1 in assets.
In 2013 and 2014, It shows that for HUL Rs. 1007 and 98 is in debt for every Rs. 1 in assets.
Thus on comparing both ITC and HUL for two years we can see that by the end of 2013, HUL has
the liabilities more than that of assets.
Also the price per share of ITC is Rs.9.69. and the gross income for ITC is Rs. 32505 crores , while
for HUL it is Rs.25999.16 crores for the year 2013.
Also for 2014 the gross income of ITC is R.12659.11 crores while for HUL is Rs. 4799.41 crores
which is much less than that of ITC.
Thus we can say that ITC is growing at a faster pace than HUL.
29 | P a g e
30 | P a g e
Project Market Study And

Industry Analysis
PROJECT OBJECTIVES
The Project was given with the following objectives
To determine the retailers as well as customers preferences regarding diff erent oil
and Wheat brands available in the market (Noida).
To Study the consumers buying behavior and attitudes towards a variety of factors
and attributes, which help them in decision-making.
To Explore the Potential Outlets in Noida which are currently not covered by the
distributors of Cargill India Pvt. Ltd.
31 | P a g e
ABOUT THE PROJECT
Firstly, For a comparative study, I Shortlisted the major competitors of Nature Fresh in oil
and wheat segment which are Ashirwad Atta & Fortune Oil.
Later I went through the process of collecting data, from 802 Retail Counters of whole
Noida region, to know the present demand in the market for Ashirwad Atta, Nature Fresh
Sampoorna Atta, Fortune oil and Nature Freshs oil.
To make the research more eff ective in nature, I fi rstly had gone to the counters which
were already being covered by the distributor sales managers of 3 distributors of Nature
32 | P a g e
fresh in Noida and then I personally explored diff erent markets of Noida to get the data
from potential uncovered counters.
With this strategy I was able to do the following things which would help the company in
many ways:
Get the information about how much demand exists in the market, and how much is
being met by the counters which are already covered by distributors.
Explore information about the uncovered counters which have the potential to sell
nature fresh goods in a good quantity.(S.R.Os)
Get the information regarding what all factors are aff ecting nature freshs sales.
Get the information about why other brands are being preferred by some retailers
as compared to Nature Fresh.
To Discover the Flaws in current working practices of Nature Freshs companyCargill.
LIMITATIONS TO THE PROJECT ASSIGNED
In this project, the following limitations can be considered:
Some people were giving wrong information about the quantity sold of Nature
Fresh,fortune and Ashirwad.
33 | P a g e
The survey has been done in Noida only thus we may say that psychological
condition and answers may change for other parts of the country.
FMCG is a rapidly changing Industry and the information may vary from season to
season.To assimilate the fi ndings the environmental changes occurin constantly
should also be kept in mind.
There were several Retail Counters which were not familiar with the name of
Cargill or Nature Fresh but they were selling its products.
All the above stated points acted as the barriers to the project and the study has been
done in such a way that these limitations were always considered during the whole
project.
OBSERVATIONS NOTED DURING THE EXECUTION OF THE PROJECT
1. Nature fresh Sampoornas demand is usually more in the counters which are near to some
society as compared to counters available in villages of Noida.
2. In Harola Village, All Shops used to deal with our distributors but now they have stopped it
because of Various problems such as
DSM was not visiting regularly.
34 | P a g e
Expired products were not being replaced by the company.
Distributor was quoting a very high price for the products of Cargill.
3. Retailers dont prefer to keep or sell our wheat because we dont replace the damaged
products, whereas it is being done by our competitor - Ashirwad.
4. There is a huge difference between the branding done by Ashirwad and nature fresh,
Ashirwads boards, banners, name boards Advertisements are being placed at most of the
markets of Noida.(including rural areas)
5. In Rural areas, such as Khorha Village and other villages Mahakosh has done good branding.
Every potential SRO has his name board on mahakoshs advertisement.
6. Places such as Salarpur Village and Barola Village have a great number of counters with
nature fresh advertisements on its board. Thus we can say the Branding done over these
areas is very good.
7. Some counters covered by Venus Enterprises complained that they wanted nature fresh
boards on display in their shops, but that was not being provided by Cargill.
8. Venus Enterprises sell our products purely on relationship basis.
9. In Khorha Village & other Villages there are various Wheat Brands which are preferred for
selling by the retailers, which are as following
Parrot
Takat
Kanak
Gopal Bhog
Life Ok
Chapati Gold
Yes bhog
Super Hathi Brand
Rasoi
35 | P a g e
Jain
Ankit
Dwarika
10.In Morna Village, 98% of the retailers are buying our products from kondli (Delhi).
11.In Gijhor Village, only 4-5 out of 25 shops are being covered by our distributors.
12.In Gijhor Village, retailers had complained that there is a lot of price discrimination done by
the distributor for retailers.
13.Retailers in rural areas complain that they prefer other brands because there is very less
margin in our products.
14.Retailers get to know the price offered by other distributors, so this creates problem in
selling as they feel they are being cheated .
15.Retailers said that Ashirwad salesmen are very much dedicated to their work, they will make
sure to come any how at their time and will definitely take the orders.
16.Our Dsms avoid contacting new counters such that they could also sell our products.
17.Parmeshwari & sons is also dealing in selling ruchi gold , fortune oil and one more local
brand of oil. This directly or indirectly will affect our sales in a negative sense.
18.Anhal Traders also sell Priyagold Biscuits, when the DSM goes to any counter, they first ask
the order for priyagold biscuits, when they get any order from the retail counters, the DSM
gets satisfied and does not put in more efforts to get the orders for nature fresh.
19.Retailers said that they will prefer selling nature fresh only if they get good margin and good
delivery by the distributor as many retailers faces this problem that sometimes the order is
not being delivered for weeks.
20.Retailers complained that the DSM does not come everytime. Some time he comes and
sometime he doesnt.
36 | P a g e
DATA ANALYSIS AND FINDINGS

1) Total counters covered by different distributors in all over Noida and total number
of Uncovered Counters in Noida according to the data collected by me.
Anhal Traders
Parmeshwari &
Sons
VENUS
ENTERPRISES
163
Grand Total
446
102
181
Counters covered by different Cargill distributors in all over noida

200
150
100
50
0
Total uncovered counters found = 802-446

= 356
Counters
Venus Enterprises covers the maximum Number of counters across Noida as compared to
Parmeshwari & Sons. and Anhal Traders.
37 | P a g e
And, There are still 356 Counters to be covered by Cargill India Pvt. Ltd. Out of These 356
counters, many counters can prove out to be our potential S.R.Os.
2) Ashirwads and Nature Freshs Total Availability at Retail

counters across whole Noida.
Ashirwad Atta
Ashirwads total availability at various
counters in Noida
no
231
YES
535
Ashirwads total availability at various counters in Noida

600
500
400
300
200
100
0
no
YES
38 | P a g e
Out of the total Covered outlets under the Project, Ashirwad Covers 535
counters.
Nature Fresh Sampoorna Atta
Nature fresh's total availability at various counters

in Noida
NO
YES
437
331
39 | P a g e
Nature fresh's total availability at various counters in Noida

500
450
400
350
300
250
200
150
100
50
0
NO
YES
Out of the total Covered outlets under the project, Nature Fresh
Sampoorna Covers only 331 counters.
3) Total Quantity (in Kg) in which Ashirwad atta and nature Fresh
sampoorna atta is sold in the markets of Noida.
40 | P a g e
Total Quantity of Ashirwad Atta Sold

Total Quantity of Nature Fresh sampoorna Atta
9373 X 50 = 468650 kg
Sold
2220 X 50 = 111000 kg
140000
120000
100000
80000
60000
40000
20000
0
As compared to Nature Fresh, Ashirwad Atta is available at more number of counters across
Noida and thus we can clearly see a huge difference in the quantity of ashirwad atta Sold
and Nature Fresh sampoorna sold, the reasons behind this issue as found during the
Execution of the project can be as following-
1) There is a huge difference between the branding and advertisements done by Ashirwad
as compared to Nature fresh. This directly affects the demand of the Nature fresh in a
negative way.
41 | P a g e
2) There are several Retail Counters which does not take interest at all to sell the goods
produced by Cargill because of the following problems as quoted by them -
Expired products are not being replaced by Cargill.
DSM of Nature Fresh was not visiting regularly but the Ashirwads DSM makes sure to
come regularly.
Distributor was quoting a very high price for the products of Cargill.
The Distributor of nature fresh practices the concept of price discrimination to such an
extent that some retailers loose faith in the distributor. Whereas, Ashirwads distributor is
more Loyal and professional in business practices.
42 | P a g e
4) Total No. of Counters in which Fortune is available.
FORTUNE
Fortune not available

Fortune is Available
82
682
43 | P a g e
800
700
600
500
400
300
200
100
0
Out Of the Total Counters covered during the project, It was seen that
Fortune is available at total 682 Retail Counters.
5) ) Total No. of Counters in which Nature Fresh oil is available.
Nature Fresh oil
44 | P a g e
Nature fresh oil Not available

Nature Fresh oil is available
272
492
600
500
400
300
200
100
0
Out Of the Total Counters covered during the project, It was seen that
Nature Fresh Oil is available at total 492 Retail Counters.
45 | P a g e
6) Total Quantity ( in litres ) in which Fortune Oil and Nature

Fresh Oil is sold in the markets of Noida .
Total Quantity of Fortune Oil Sold

Total Quantity of Nature Fresh Oil Sold
10678 x 12 = 128136
6711 x 12 = 80532
140000
120000
100000
80000
60000
40000
20000
0
It was Noticed during the project, that, Retailers do prefer selling Cargills Various
types of oil including Refined, Mustard Oil and Vanaspati. Nature Fresh gives a
tough competition to all the other brands in this oil segment of the market.
46 | P a g e
Still the Sale of Fortune Oil is more because of its good image in the market from a
long time. It has been able to create a good name in the market for both the
retailers and consumers.
It can be said that there were many Retail Counters which were only selling fortune
oil because according to them customers would come and only prefer buying
Fortune oil.
Whereas, the retail counters where Nature Fresh was sold, Retailers commented
that they had to convince the customer to try nature fresh oil, customers didnt ask
for nature fresh by themselves.
47 | P a g e
LEARNINGS
Under great pressure, how one should be able to do the daily operations..
Managerial capabilities as we had to Deal with the DSM, who accompanied us as well as the
Retail counters.
The skill of convincing people.
Importance of Relationship Building and Good communication Skills.
The basic knowledge regarding how FMCG sector functions at the very base level.
How to increase sales .
48 | P a g e
Importance of Team Work.

Good Leadership skills and its impact.
How to analyze data with an analytical approach and fetching useful information from the
raw data.
How to cover an untapped market where complete reach was not there previously.
Factors which indirectly affects the sales but which affects the visibility of products in the
market.
CONCLUSIONS AND RECOMMENDATIONS
All the potential S R Os should be identified and proper tie ups and benefits should be given
to them while doing business with them.
49 | P a g e
It is very important for Cargill to regularly invest in advertisements in print media and
television media such that customers start trusting and demanding Cargills product.
The company should try to make Such distributors which are only selling products of Cargill
India Pvt. Ltd. But not the goods produced by other competitors of the FMCG Industry.
The problem of Leakage should be noticed very carefully and efforts should be made such
that the Retailers are not facing any loss because of leakage problem.
Noida has many villages in it, Cargill should start focusing on these villages more in future.
There should be a separate employee hired just to do visual merchandising for the products.
Higher Officials should time to time visit the market and should take feedbacks from their
customers and retail counters.
Instead of doing more of paper work, technology usage should be promoted during basic
operations even.
There should be proper Interaction with the retailers as well as customers whenever any
scheme is introduced for the retailers & customers they should be made aware of it. Sales
representatives should be given guidelines to intimate each and every retailer of his area
about the schemes.
50 | P a g e
10 Whenever any scheme is introduced by the company, efforts should be made to make it
confirmed that the information regarding these schemes are communicated to the target
audience.
11 Non-Monetary incentives should be given to the retailers associated with the Distributors
which would help in increasing their spirits to sell Cargills products.
51 | P a g e
Terms and Terminologies Used
Beat - It Include the names of all the Retail Stores a person
is supposed to visit on a
particular day.
Super Stockiest - For the manufacturer, a stockiest acts as a local delivery point in the
market. Stockiest buys the products from the manufacturer directly in huge quantities then
further he break bulks, and distribute the goods to the distributors and retailers in the
market.
Carrying & Forwarding Agents- Carrying & Forwarding agents commonly known as C &
F agents work on a commission basis and basically deals with every aspect of storing the
goods.
52 | P a g e
Distributor- Distributor performs the same function of super stockiest and thus acts as a
local delivery point for the manufacturer.
Wholesalers- A wholesaler purchases the goods from the stockiest or the distributor and
further sells them to the retailers..
ISR stands for Interim Sales Representative who are basically the employees of the
company and are also on the payroll of the company. Their work is to carry out the sales
operation in their territory.
DSM- Distributor Sales Manis basically the employee of the distributor,he is on the payroll
system of the distributor and not on the payroll of the company. Their work is also to carry
out the sales operation in their territory.
Primary Sales- Sales of goods from the company to the super stockiest or the distributors.
Secondary sales- Sales of goods done from super stockiest or distributors to the
wholesalers or retailers.
Productive outlets- Outlets which are actually selling the products of Cargill India Pvt.
Ltd.
53 | P a g e
Unproductive outlets- Outlets which are not selling products of Cargill India Pvt. Ltd.
Potential Outlets-Outlets which have the potential to sell the products of Cargill India Pvt.
Ltd.
54 | P a g e
ANNEXURES
Balance Sheet of ITC as at 31st March 2012-2013
March 2013
March 2012
(in crores)
(in crores)
EQUITIES AND LIABILITIES

Capital of shareholder
790.16
781.84
Surplus and Reserves
22367.72
18676.74
Minority Interests
23157.90
179.89
19458.58
157.09
Long term borrowings
90.80
105.38
Deferred liabilities
1213.59
882.03
long term liabilities
40.47
50.48
Long term provisions
144.75
119.63
1489.61
1157.52
Short-term borrowings
1.89
Payables of trade
1771.56
1538.37
Other Current Liabilities
3560.03
3429.02
Short-term Provisions
5194.39
4359.10
TOTAL
10525.98
35353.38
9328.38
30101.57
Tangible Assets
11728.45
9578.95
Intangible Assets
100.54
120.01
Work in Progress capital
2041.37
2388.87
Under Development Intangible Assets
20.66
7.59
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
ASSESTS
Non-Current Assets
Fixed Assets
55 | P a g e
13891.02
12095.75
5.67
5.67
13885.35
12089.75
Goodwill on consolidation
316.51
314.13
Non-current investments
814.17
765.02
Deferred tax assets
24.11
16.26
Long term Loans and advances
1246.30
1096.13
Other non-current assets
1.24
1.24
16287.68
14282.53
Current investments
5167.11
4441.81
Inventories
7522.09
6426.87
Trade Receivables
1395.76
1200.20
Cash and cash equivalents
3828.30
3130.12
Short-term loan and advances
529.61
484.17
Other current assets
622.83
135.87
TOTAL
19065.70
35353.38
15819.04
30101.57
Less: Provision for assets given on

lease
CURRENT ASSETS
Profit and Loss Statement of ITC for year 2012-2013

March 2013
March 2012
(in crores)
(in crores)
Gross Income
45012.45
37747.71
Revenue from sale of goods and
43920.76
36617.45
services
Less: Excise Duty
12597.31
10437.93
Net Revenue from sales of goods and
31323.45
26179.52
services
56 | P a g e
Other Operating Revenue
304.09
345.91
Revenue from Operations
31627.54
26525.43
Other Income
877.60
784.35
Total Revenue
32505.14
27309.78
Expenses
Cost of material consumed
9069.82
7808.75
Purchases of stock in trade
3305.23
1921.18
Changes in inventories of finished
[256.84]
[85.74]
goods
Employee benefit expenses
Finance costs
Depreciation and amortization
2145.63
87.18
859.11
1935.11
80.50
745.48
expenses
Other expenses
6189.36
5736.35
Total Expenses
21399.49
18141.63
Profit before tax
11105.65
9168.15
Current Tax
3088.05
2777.57
Deferred Tax
324.02
68.19
Profit after tax
7693.58
6322.39
Less: Minority interest
96.38
75.53
Share of net profit of associates
10.87
11.28
Profit for the year
7608.07
6258.14
each)
Basic
Rs. 9.69
Rs.8.05
Diluted
Rs. 9.58
Rs.7.96
Tax expense:
Earnings per share ( face value Rs. 1
Balance Sheet of HUL as at 31st March 2012-2013

March 2013
March 2012
(in crores)
(in crores)
57 | P a g e
Share Capital
216.25
216.15
Reserves and Surplus
2457.77
3296.78
Other long term liabilities
476.25
329.69
706.25
666.95
Trade Payables
5167.69
4622.96
616.15
546.77
1872.02
1278.97
TOTAL
11512.47
10958.27
Tangible Assets
2256.79
2117.53
Intangible Assets
36.11
29.94
Capital Work in Progress
205.32
205.13
Intangible Assets under Development
10.32
10.32
548.03
186.31
Deferred tax assets (net)
204.73
214.24
384.29
401.27
296.84
Current investments
1782.63
2251.90
Inventories
2526.99
2516.65
Trade Receivables
833.48
678.99
Cash and bank balances
1707.89
1830.04
648.26
480.70
CURRENT LIABILITIES
ASSESTS
Non-Current Assets
Fixed Assets
CURRENT ASSETS
58 | P a g e
70.74
35.25
TOTAL
11512.47
10958.27
Profit and Loss Statement of HUL for year 2012-2013

March 2013
March 2012
(in crores)
(in crores)
REVENUE FROM OPERATIONS
27283.59
23181.09
Less: Excise Duty
[1473.38]
[1064.72]
Revenue from Operations, net
25810.21
22116.37
Other Income
606.90
278.31
Total Revenue
26417.11
22394.68
10284.66
8584.89
3235.31
3024.19
[31.13]
128.73
goods
1318.34
1107.28
Finance costs
25.15
1.24
236.02
218.25
expenses
Other expenses
6999.28
5979.99
Total Expenses
22067.63
1904.52
Profit before exceptional items and
4349.48
3350.16
tax
Exceptional items
608.40
118.87
Profit before tax
4957.88
3469.03
EXPENSES
59 | P a g e
Tax expense:
Current Tax
[1167.59]
[784.52]
Deferred Tax
[9.45]
[0.76]
Tax adjustments, net
15.83
7.65
Profit for the year
3796.67
2691.40
1 each)
Basic
Rs.17.56
Rs.12.46
Diluted
Rs.17.55
Rs.12.45
Earnings per share ( face value Rs.
Balance sheet for ITC for year 2013-2014March 2014
March 2013
(in crores)
(in crores)

Share Capital
795.32
790.18
25466.70
21497.67
26262.02
22287.85
Long term borrowings
51.00
66.40
Deferred tax liabilities (NET)
1296.96
1203.72
5.09
3.11
110.00
125.62
1463.05
1398.85
Short-term borrowings
0.14
Trade Payables
1987.59
1668.98
3631.88
3528.62
5884.71
5133.13
CURRENT LIABILITIES
60 | P a g e
TOTAL
39229.39
34017.43
Tangible Assets
11948.69
11118.55
Intangible Assets
64.05
90.79
Capital Work in Progress tangible
2272.94
1472.80
assets
22.79
14.99
14308.47
12697.13
2512.17
2000.86
1480.02
1727.97
18300.66
16425.96
Current investments
6311.26
5059.43
Inventories
7359.54
6600.20
Trade Receivables
2165.36
1163.34
Cash and cash equivalents
3289.37
3615.00
783.51
512.14
1019.69
641.36
TOTAL
20928.73
39229.39
17591.47
34017.43
ASSESTS
Non-Current Assets
Fixed Assets
CURRENT ASSETS
Profit and Loss Statement of ITC for year 2013-2014-
March 2014
March 2013
(in crores)
(in crores)
Gross Income
48175.80
43044.21
61 | P a g e
Gross Revenue from sale of goods and
46712.62
41809.82
services
Less: Excise Duty
13830.06
12202.24
Net Revenue from sales of goods and
32882.56
29605.58
services
Other Operating Revenue
356.04
295.69
Revenue from Operations
33238.60
29901.27
Other Income
1107.14
938.70
Total Revenue
34345.74
30839.97
10263.28
8936.21
3021.47
3375.92
[128.41]
[246.35]
goods
1608.37
1387.01
Finance costs
2.95
86.47
899.92
795.58
expenses
Other expenses
6019.05
5820.97
Total Expenses
21686.63
20155.79
Profit before tax
12659.11
10684.18
Current Tax
3791.13
2934.79
Deferred Tax
82.77
331.00
Profit for the year
8785.21
72418.39
Rs. 11.09
Rs.9.45
Expenses
Tax expense:
Earnings per share ( face value Rs. 1

each)
Basic
62 | P a g e
Diluted
Rs. 10.96
Rs.9.33
Balance Sheet of HUL as at 31st March 2013-2014-
March 2014
March 2013
(in crores)
(in crores)

Share Capital
216.27
216.25
3060.78
2457.77
278.82
476.25
838.69
706.34
Trade Payables
5793.89
5167.69
852.94
616.15
1957.01
1872.01
TOTAL
12998.40
11512.47
Tangible Assets
2397.94
2256.79
Intangible Assets
241.12
36.11
Capital Work in Progress
312.08
205.32
7.70
10.32
636.17
548.03
Deferred tax assets (net)
161.73
204.78
605.51
384.29
0.68
296.84
CURRENT LIABILITIES
ASSESTS
Non-Current Assets
Fixed Assets
63 | P a g e
CURRENT ASSETS
Current investments
2457.95
1782.63
Inventories
2747.53
2526.99
Trade Receivables
816.43
833.48
Cash and bank balances
2220.97
1707.89
537.68
648.26
71.91
70.74
TOTAL
12998.40
11512.47
Profit and Loss Statement of HUL for year 2013-2014-
March 2014
March 2013
(in crores)
(in crores)
REVENUE FROM OPERATIONS
27283.59
Less: Excise Duty
[1473.38]
Revenue from Operations, net
25810.21
Other Income
606.90
Total Revenue
26417.11
EXPENSES
11159.81
10284.66
3350.19
3235.31
[166.38]
[31.13]
goods
1435.95
1318.34
Finance costs
36.03
25.15
64 | P a g e
260.55
236.02
expenses
Other expenses
7764.30
6999.28
Total Expenses
23840.45
22067.63
Profit before exceptional items and
4799.71
4349.48
tax
Exceptional items
228.68
608.40
Profit before tax
5028.39
4957.88
Current Tax
[1293.15]
[1167.59]
Deferred Tax
[24.83]
[9.45]
Tax adjustments, net
157.08
15.83
Profit for the year
3867.49
3796.67
1 each)
Basic
Rs.17.88
Rs.17.56
Diluted
Rs.17.87
Rs.17.55
Tax expense:
Earnings per share ( face value Rs.
65 | P a g e
REFERENCES
http://www.cargill.co.in/en/index.jsp
http://www.moneycontrol.com/india/stockpricequote/cigarettes/itc/ITC
http://www.moneycontrol.com/india/stockpricequote/personal-care/hindustanunilever/HU
www.google.com
https://en.wikipedia.org/wiki/Cargill
66 | P a g e

Summer Internship Report

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Summer Internship Report

Caricato da

Copyright:

Formati disponibili

Annexure-III

Jaypee Business School

Market Study and Industry Analysis

Corporate Internship Supervisor

JBS-Faculty Supervisor: DR. G. K. AGGARWAL

Self Certification by the Intern

Name: ABJESH VASUDEVAN

DETAILED STUDY ABOUT PROJECT

CONCLUSION & RECOMENDATIONS

TERMS AND TERMINOLOGIES

a lot in carrying out this project and whose valuable

We process, refine and market imported and indigenous vegetable oils

We provide risk management and financial solutions

Our approach is to be trustworthy, creative and enterprising .

HIERARCHY STRUCTURE OF CARGILL INDIA PVT LTD. (Organogram)

National sales manager

Regional business manager

Zonal / Regional sales manager

Area sales manager

Senior sales officer

Trainee sales officer

Interim sales representative

Corporate Vice President, Operations

Senior Vice President

Peter Van Deursen

Corporate Vice President and Chief Information

Corporate Vice President, Corporate Affairs

Corporate Vice President

Corporate Vice President

Corporate Vice President, Human Resources

Senior Vice President

Vice Chairman and Chief Risk Officer

Agriculture Trading & Processing - Cargill Tries to connect different types of

Meat Poultry and Eggs

Animal Feed And Nutrition

Energy and Industrial

management and financial solutions in different type of world markets.

Leonardo Olive Oil is the latest entry in

leader with a 30% +market

Leonardo is available in 3 forms1. EVO

Gemini is the pioneer in Sunflower oil

Soyabean Edible oil

Nature fresh range of oils are available in

Refined Soyabean Oil

Nature Fresh Chakki Atta is available in @

Sweekar is considered to be the leading

Rath can be termed as a Trusted heritage

In the hydrogenated fats category,

Distribution Channel of Cargill India Pvt. Ltd.

STP (Segmenting,targeting and positioning of Cargill)

Manufacturers who need superior quality ingredients, services or

Foods & beverages manufacturers, animal feed producers,

A world class, superior quality food processing and services

Size of the consumer durables market in India

Trends in FMCG revenues over the years in India

market is anticipated to increase at a CAGR of

17.7% to touch 100 billion US Dollars till 2025.

Market break-up of Indian FMCG industry

.The federal government has also

Advised Cost (SAP).

Per-capita income in India

Porters Five Forces(FMCG Industry)

Threat Of New Entry

Entrants in the market