A SUMMER TRAINING PROJECT REPORT

ON

Distribution & Promotion for Rice in

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF
DEGREE OF MASTER IN BUSINESS ADMINISTRATION 2010-12

UNDER THE GUIDANCE OF:

Ms./ Mr./ Dr./ Prof. __________
Assistant Professor/ Associate Professor/ Professor, RDIAS
SUBMITTED BY:
Name of the Student
Enrollment No._______
MBA, Semester ______
Batch 20__ - 20__

Certificate

This is to certify that the project report titled Pronouncement, processing & Distribution of Basmati Rice
is a bonafide work carried out by Ms. Type ur name here in partial fulfillment for award of the Post
graduate degree in management( MBA).

TO Whomsoever It May Concern

This is to certify that type ur name student of RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES
Of Professional studies

has successfully completed his Summer Training .She has submitted a project

report on Pronouncement, processing & Distribution of Basmati Rice

During his training period from _______ , she was hard working, discipline, punctual & conduct was
satisfactory. We wish him all the success in the future.

Reference name

Acknowledgment
I thank the almighty for providing me the opportunity and giving me the strength to finish my job in Jagat
Agro Industries.

I feel deep senses of gratitude from the core of my heart to Jagat Agro Industries for the guidance, extensive
help, providing facilities, critism, admiring my good job and motivation to get the job done.

I express my sincere appreciation to Mr. Anshul Mathur in the Current Account Section for extending full
support and continuous guidance throughout the project.

PREFACE

This project submitted in completion of the summer Training under taken by the trainees at Jagat Agro
Industries.

During this period the trainees were involved in to lead a team of 3-5 employee under him for opening of
current account & maintain the relation with customer.

This project is classified in to different sections. One section provides the instruction to verification of
documents of customer regarding the opening of current account.

Another section provides instruction, objective of the project, analyzed report of the market or field and
other studies including future enhancement suggestion and recommendation.

Executive Summary
Working with Jagat Agro Industries has been a good experience and exposure to the real working of the
organization. Its been a good chance of learning.

My project objective was to find out the clear picture of the given current account product of Jagat Agro
Industries, verified the documents of the customer so that the bank will not face the problem of fraud or any
misconduct in operating of account.
For first 2 weeks I got the product training .during which I went to the Jagat Agro Industries.
After this I have to recruit the employees under me for this I have to contact some coaching centers,
computer centers etc.
Normally a decide made a 15-20 calls daily and out of which 1-2 lead were generated but many times not a
single lead was generated. After generation of lead my work was started I made a phone call to customer to
got ready with his documents & I had to appointed the time with customer .On the date of appointment I
went to customer & clear all his remaining queries & verified the Photostats of original documents with
original documents, after this completed the account opening form, took all Photostats and completed the
lead. This is beginning of my work after this I filled the form with information given in the document .and
sends it to Delhi office for scanning.
If there was some rejections in application form then I had to corrected it, and again send for scanning ,If
scanned got completed without any fault the customer got his account opened within a week.
Major finding includes that no doubt we enjoy a good reputation on the market but still many ignorant about
Industries so we have to promote our current account products. As Industries is spending lots of money on
advertising so no further policy is required for this, but we can indulge in other promotional techniques like
taking part in exhibitions, window display, customer offers, introduction of sachets to make current account
popular in urban market potential is maximum.
Strength, I also carried out weakness, Opportunities and threat (SWOT) analysis. The database annexed to
the report could not used to devise the current account marketing strategy.

CHAPTER 1
1.0 Introduction:

The Govt. of India has been emphasizing planned development of small scale industries in the country.
Various policies, planning & programmes are made from time to time to promote this sector which
contributes significantly in economic development, employment generation & up-liftmen of the society.
There more than 34 lakhs SSI units in the country producing 8000 items and contributing nearly 34% to the
National Exports. This sector provides employment to 35 lakh people and has been assigned the target of
annual growth of 12% and creation of 4.4 million additional jobs during 10th Five Year Plan.
The Small Industries Development Organisation (SIDO) of Ministry of SSI, Govt. of India is the key agency
responsible for planning, coordinating & monitoring the development of this sector in the country. Various
schemes & policies are announced by Govt. of India which effectively promotes this sector by providing
direct & indirect assistance.

In order to further develop this sector in a planned & effective matter, the SIDO, Govt. of India has come up
with an innovative project of CLUSTER DEVELOPMENT PROGRAMME. This is a time bound project
and aims to systematically develop & upgrade cluster group of Industries as a whole with the involvement of
Govt., supporting institutions & the industry. Out of 358 clusters identified in the country, the cluster
development programme has been initially taken up for at least one cluster group from every state. In
Haryana, out of 21 clusters identified for development, the start has been given with taking up of RICE
MILLING INDUSTRY CLUSTER AT KARNAL.

Under the programme, the in depth study of this cluster industry has been taken up and necessary
developmental interventions have been identified in consultation with the industry, associations & other
cluster actors. These interventions will be implemented in a phased manner in the identified net works /
groups of desiring units to achieve the improved/tangible results to upgrade the industry in the state.
Rice is intimately involved in the culture as well as the food ways and economy of many societies. For
example, folklore tells us that when the Kachins of northern Myanmar (Burma) were sent forth from the
center of the Earth, they were given the seeds of rice and were directed to a wondrous country where
everything was perfect and where rice grew well. Rice is an integral part of their creation myth and remains
today as their leading crop and most preferred food. In Bali, it is believed that the Lord Vishnu caused the
Earth to give birth to rice, and the God Indra taught the people how to raise it. In both tales, rice is
considered a gift of the gods, and even today in both places, rice is treated with reverence, and its cultivation
is tied to elaborate rituals.

Chinese myth, by contrast, tells of rice being a gift of animals rather than of gods. China had been visited by
an especially severe period of floods. When the land had finally drained, people came down from the hills

where they had taken refuge, only to discover that all the plants had been destroyed and there was little to
eat. They survived through hunting, but it was very difficult, because animals were scarce. One day the
people saw a dog coming across a field, and hanging on the dog's tail were bunches of long, yellow seeds.
The people planted these seeds, rice grew, and hunger disappeared. Throughout China today, tradition holds
that "the precious things are not pearls and jade but the five grains", of which rice is first.

According to Shinto belief, the Emperor of Japan is the living embodiment of Ninigo-no-mikoto, the god of
the ripened rice plant. While most modern Japanese may intellectually dismiss this supernatural role, they
cannot deny the enormous cultural importance of rice on life in their country - and so it is in much of the rice
world.
Origin and Diffusion of Rice
The origins of rice have been debated for some time, but the plant is of such antiquity that the precise time
and place of its first development will perhaps never be known. It is certain, however, that the domestication
of rice ranks as one of the most important developments in history, for this grain has fed more people over a
longer period of time than has any other crop.

The earliest settlements of those persons responsible for domestication undoubtedly were in areas offering a
wide range of plant and animal associations within a limited geographical area. Such sites offered a variety
of food sources over a span of seasons to societies dependent on hunting and gathering for their food supply.
These earliest settlements might well have been near the edge of the uplands, but on gently rolling
topography and close to small rivers that provided a reliable water supply. For centuries, humans maintained
themselves by fishing in the rivers, hunting in the forests, and gathering edible plant products. The earliest
agriculture, a simple form of Sweden, may have developed by accident when women of the settlement
recognized that the mix of plant life growing around the midden was especially rich in edible forms. The
earliest agriculture was probably focused on plants that reproduced vegetative, but the seeds of easily
shattering varieties of wild rice such as Oryza fatua may have found their way to the gardens at an early
date.
Cultivated rice belongs to two species, O. sativa and O. glaberrima. Of the two, O. sativa is by far the more
widely utilized. O. sativa is a complex group composed of two forms endemic to Africa but not cultivated,
and a third from, O. rufipogon, having distinctive partitions into South Asian, Chinese, New Guinean,
Australian, and American forms. The subdivision of O. sativa into these seven forms began long ago and
came about largely as a result of major tectonic events and worldwide climatic changes.
The earliest and most convincing archeological evidence for domestication of rice in Southeast Asia was
discovered by Wilhelm G. Solheim II in 1966. Pottery shards bearing the imprint of both grains and husks of
O. sativa were discovered at Non Nok Tha in the Korat area of Thailand. These remains have been

confirmed by 14C and thermo luminescence testing as dating from at least 4000 B.C. This evidence not only
pushed back the documented origin of cultivated rice but, when viewed in conjunction with plant remains
from 10,000 B.C. discovered in Spirit Cave on the Thailand-Myanmar border, suggests that agriculture itself
may be older than was previously thought. No parallel evidence has been uncovered in Egyptian tombs or
from Chaldean excavations.

Eary Spread of Rice

From an early beginning somewhere in the Asian arc, the process of diffusion has carried rice in all
directions until today it is cultivated on every continent save Antarctica. In this early hearth area, rice was
grown in forest clearing under a system of shifting cultivation. The crop was grown by direct seeding and
without standing water. Rice was grown on "farms" under conditions only slightly different from those to
which wild rice was subject. A similar but independent pattern of the incorporation of wild rices into an
agricultural system may well have taken place in one or more locations in Africa at approximately the same
time. It was in China that the processes of pudding soil and transplanting seedlings were likely refined. Both
operations became integral parts of rice farming and remain very widely practiced to this day. Pudding
breaks down the internal structure of soils, making them much less subject to water loss through percolation.
With the development of pudding and transplanting, rice became truly domesticated. In China, the history of
rice in river valleys and low-lying areas is longer that its history as a dryland crop. In Southeast Asia, by
contrast, rice was originally produced under dryland conditions in the uplands, and only recently did it come
to occupy the vast river deltas. Migrant peoples from South China or perhaps northern Vietnam carried the
traditions of wetland rice cultivation to the Philippines during the second millennium B.C., and DeuteroMalays carried the practice to Indonesia about 1500 B.C. From China or Korea, the crop was introduced to
Japan no later than 100 B.C.
Movement to western India and south to Sri Lanka was also accomplished very early. The date of 2500 B.C.
has already been mentioned for Mohenjo-Daro, while in Sri Lanka, rice was a major crop as early as 1000
B.C. The crop may well have been introduced to Greece and neighboring areas of the Mediterranean by the
returning members of Alexander the Great expedition to India 344-324 B.C. From a center in Greece and
Sicily, rice spread gradually throughout the southern portions of Europe and to a few locations in North
Africa.
Interestingly enough, medical geographers in the 16th century played an important role in limiting the
adoption of rice as a major crop in the Mediterranean area. During the 16th and early 17th centuries, malaria
was a major disease in southern Europe, and it was believed to be spread by the bad air (hence the origin of
the name) of swampy areas. Major drainage projects were undertaken in southern Italy, and wetland rice
cultivation was discouraged in some regions.

In fact, it was actually forbidden on the outskirts of a number of large towns. Such measures were a
significant barrier to the diffusion of rice in Europe.

The suspicion that rice fields cased "mal-air" did not entirely disappear with the end of the Renaissance. In
late 1988, the United States Environmental Protection Agency and the National Science Foundation both
issued reports on the "greenhouse effect" They agreed that there has already been some warming of the
earth; that irrespective of whatever action governments may take, the world is destined for a further
temperature increase of at least 2o C; and that without strong human intervention the increase may be much
greater. The greenhouse effect is caused in large part by the release, through human activity, of certain gases
that dirty the atmospheric window and prevent the escape of the earth's heat to outer space.
Carbon dioxide has long been the prime suspect, but it is now known that, molecule for molecule, methane
traps 20 times more energy. Both reports also agree that methane concentrations are increasing at the rate of
approximately 1%/yr. A major methane source, perhaps even the largest of all, is flooded Riceland. Not only
do methane-producing bacteria thrive in such an environment, but rice plants themselves act as gas vents,
putting greater than expected concentrations into the atmosphere. The problem is, of course, magnified by
the extension of rice area, by the expansion of irrigation facilities, and especially by the enlargement of
double-cropped rice areas. Rice fields are suspected of putting 115 million tonnes of methane into the
atmosphere each year. This is at least equal to the total production from all of the world's natural swamps
and wetlands. As a result of Europe's great Age of Exploration, new lands to the west became available for
exploitation. Rice cultivation was introduced to the New World by early European settlers. The Portuguese
carried it to Brazil, and the Spanish introduced its cultivation to several locations in Central and South
America. The first record for North America dates from 1685, when the crop was produced on the coastal
lowlands and island of what is now South Carolina. The crop may well have been carried to that area by
slaves brought from Madagascar. Early in the 18th century, rice spread to Louisiana, but not until the 20th
century was it produced in California's Sacramento Valley. The introduction in the latter area corresponded
almost exactly with the timing of the first successful crop in Australia's New South Wales.
India is an agricultural land and with the blend of technology in agro field and lots of immense work in
R&D the country have developed many new varieties of rice, few are completely new and few are hybrid of
existing. Few varieties of rice in India are given below:

Rice
1009 Kar

ADT 39

Alur Sanna

Ambemohor Basmati

Amira Mogra Basmati

Amira Tibar Basmati

Amire Full Basmati

Amras Non Basmati

andra Sanna

anekombu Sanna

anekowe

Annapoorna

AP Raw Rice 5293

AP Raw Rice Baptla Ponni

AP Raw Rice PLR Soma

AP Raw Rice SilkyRaw

AP Raw Rice-1001

AP Raw-Rice Sona Ponni

Arcot Kichikdi

Arti Mashuri

BPT

Balesuli

Bangar Kaddi

Bangarkhovi

Bangarsanna

Bantwal

Basamti Dawat

Basmati (Rose)

Basmati Car

Basmati Charmi

Basmati Dawat Roz-(20KG)

Basmati Golden Sela New

Basmati Golden Sela Old

Basmati Haryana Raw (New)

Basmati Haryana Raw (Old)

Basmati Haryana Sela(New)

Basmati Haryana Sela(Old)

Basmati Mogra (Raw/New)

Basmati Mogra (Raw/Old)

Basmati Paddy

Basmati Silky Kohinoor

Basmati Super Kohinoor

Basmati Trophy

Basmati U.P. (New)

Basmati U.P. (Old)

Basmati-370

Basmati-385

Basmati-386

Basmatibar (Raw/New)

Basmatibar (Raw/Old)

Basmatidubar Raw/New

Basmatidubar Raw/Old

Basumathi

Bellary Sanna

Bile Kagga

Boiled Rice

Broken Rice

Broken Rice(Kanki)

BT Sona

Byra (Red Rice)

Champakali

Chikkahalga

China Sanna

Chinoor

Chinoor Non Basmati

Chintamani Sanna

CO 36

CO-43 (Medium) Boiled

Coarse

Coarse (I.R.20)

Coimbatore Kaddi

Coimbatore Sanna

Common

CR 1009 (Coarse) Boiled

Culture Ponni1

Culture Ponni2

Dappa

Dash Non Basmati

Dawal Full Basmati

Dawat

Dawat Kinki

Dawat Mogra

Dawat Tiwar

Dhoon Full Basmati

Dhoon Mogra Basmati

Dhoon Tibar Basmati

Dilkhus Basmati

Doly Non Basmati

Doon Dubar

Doon FUll Basmati

Doon Kinki Basmati

Doon Mini

Doon Mogra (Basmati

Doon Tiwar Basmati

Dosa Rice

Dubraj Daboo Ji Non Basmati

Duplicate Basmati

Durbar Basmati

Early St.

EMR Boiled

Export Parmal

Farm Kaddi

FCI Non Basmati

FCI Parmal

Fine

Fine(Basmati)

GMR Steam

Golden Sela Best

Govt. Quality

Gowrisanna

H.Y.V.

Hallo Dubar Basmati

Hallo Full Basmati

Hallo Mogra Basmati

Hallo Tibar Basmati

Halubbulu (H 137)

Hamsa St.

Hansa

Hassan Dappa

HMT Fine Raw

Hmt Rice-Non Basmati

HMT Sona Best

HMT Sona Medium

III

Intan

IR 20

IR 20 Fine Raw

IR 20 Medium Boiled

IR 50

IR20 Parboiled

IR-8

IR-8 Raw (New)

IR-8 Raw (Old)

IR-8 Sela (New)

IR-8 Sela (Old)

IR-8 Wand

Jaya

Jeera Samba

Jenugudu

Jhilli Medium

Jirigesanna

Kachha Basmati

Kaddi

Kalimuch

Kapila Sanna

Karekagga

Kattasambar

Kesari (Coorg)

Kichudi

Kohinoor Durbar Basmati

Kohinoor Full Basmati

Kohinoor Kinki Basmati

Kohinoor Mini Durbar Basmati

Kohinoor Mogra Basmati

Kohinoor Tibar Basmati

Kohinoor Trophy Basmati

Kohinoor Trophy Durbar

Kolam-Non Basnati

Lajbab Non Basmati

Lashkari

Long Bold

Madhu (MR 136)

Maharani Dubar Basmati

Maharani Kinki Basmati

Maharani Mini Dubar Basmati

Maharani Mino Mogra basmati

Maharani Mogra Basmati

Maharani Tiwar Basmati

Malnad gidda

Mandya-vani

Mangal (MR 272)

Manila

Masoori-Non Basmti

Masuri

Mataa Parboiled

Medium

Milled

Mini Basmati

Mnadyavani

Mogra Basmati

Motta (Coarse) Boiled

Mull Bhatte

Naya

Nellore Sanna

Non Basmati Jhilli Safri Best

Non Basmati Kalimunch

Noorjahan Non Basmati

NT2

Original Basmati

Other

Padma

Parimal (New)

Parimal (Old)

Parmal

Parmal (Paddy)

Parmal Kachha

Parmal Raw (New)

Parmal Raw (Old)

Parmal Sela

Parmal Sela (Old)

Parmal Sels (New)

Parmal Wand

Parmal Wand (Old)

Phalguna

Ponni

Ponni (Fine) Boiled

Ponni Fine Raw

Ponni parboiled

Popular Basmati

PR-103

PR-106

PR-108

PR-111

Prakash

Punjab Parmal Non Basmati

Pusa Basmati (Paddy)

Pusa Basmati Raw (New)

Pusa Basmati Raw (Old)

Pusa Basmati Sela (New)

Pusa Basmati Sela (Old)

Puspa (MR 301)

Putta Bhatta (White Rice)

Rajahamsa

Rajbhog

Rasi

Ratnachudi (718 5-749)

Rice Bran(Kukuf)

Rice Floor

Sadharan

Sambar

Sanna Bhatta

Sanna Honsu

Sannaanekal

Sarbati Raw

Sarbati Raw (New)

Sarbati Raw (Old)

Sarbati Sela

Sarbati Sela (New)

Sarbati Sela (Old)

Sela Basmati

Shakti

Sharbati (Paddy)

Sona

Sona Boiled

Sona Coarse

Sona Fine

Sona Mansoori Non Basmati

Sona Medium

Sona Raw New

Sona Raw Old

Sona St.

Sujatha (B. T)

Super Fine

Suvarna Best

Suvarna Medium

Swadras Non Basmati

Tallahamsa (Bilihamsa)

Tericot Sela

Tini Basmati

Vani (Jet 2295)

Vijaya

White Car

White Parboiled

Zeeraga Samba Rawrice

Basmati group varieties are called superfine varieties whereas the Non basmati Group PR varieties are
medium fine & other are thick rice varieties.

About Organization/ Company Profile:

Founded in Delhi, Bhole Nath Foods Pvt Ltd. have come up as the name to reckon with whenever Fresh
Indian Rice is sought for. Thanks to their men and machine, they have excelled in such competitive business
environment. They are going from strength to strength under the guidance of Mr. Rahul Chopra(Proprietor).

Processing Unit
The presence of high-tech Rice Mills in our processing unit has helped in removing any type of impurities
such as hulls, straw, dust, clay from Indian Rice. Also, we have a dedicated packaging unit, which meets the
highest standards in terms of hygiene.

Bhole Nath Foods Team

Hard work of our team has paid off well in constructing a network of happy clients. Be it Procurement
Managers, Production Supervisors, Quality Inspectors or Packaging Executives, everyone works with
matchless dedication. In addition, the team has helped us to cross several milestone of excellence.

Why Bhole Nath Foods?

Goodwill has been earned by us due to the following reasons:

We give clients the best of business deals, ensuring their interests be safeguarded
We make sure to hygienically pack the Indian Rice, using food-grade packaging material
These factors, among many others, have helped us to gain a firm footing in the market.

Bhole Nath Foods Popular Products

White rice
Non basmati rice
Organic basmati rice
Broken rice
Boiled rice
Polished rice

For Bhole Nath Foods Pvt Ltd, quality is hygiene, owing to which it has come up as a reliable Manufacturer
and Exporter of a wide assortment of Indian Rice. Whether it is Raw Rice, Sella Rice or Steam Rice, Sona
Masuri Rice, Basmati Rice, DP Basmati Rice, quality has been a hallmark of every type of Indian Rice that
we offer.

The reason of having access to the world's most discerning customers is our strong commitment to quality.
Straight from selection of rice grains, their processing, packaging to delivery: each and every step is doublechecked by a team of Quality Inspectors; this, resultantly, ensures full client satisfaction.

1.1.2. Production:
At Bhole Nath Foods process, products to make them excel in the quality conscious market.

PROCURING PADDY: Our network of offices in major man dies enables us to procure the best quality in
paddy. After the distribution of selected seeds in the productive hands of our farmers, the paddy is procured.
PADDY DRYER: Paddy is uniformly dried and processed through dryers to reduce the moisture content
and stored in warehouses for maturing. Our quality expertise continues to play a key role in the paddy

storage area where stringent internal checking procedures are used to ensure proper storage and protection.
DE-HUSKING: A fully automatic rubber roll control system enables automatic rice hulling operation.

PADDY SEPARATORS: The rice after the hulling process still contains about 10%-15% of paddy kernels.
It is fed onto the separating trays and given special sideway motions till it rolls down to the lower front end
of the separating trays. This separates the rice from the paddy kernels.
FINE CLEANERS: Cleaners are used for grading of light and heavy seeds, cereal and granular materials.
The machines manufactured in accordance with good quality principles and having multiple features are
used for the purpose.
POLISHING AND SORTING: Polishers are so specially designed that brown rice is polished by its
mutual friction among rice grains in polishing chamber to perform the even polishing effect.
During the milling process, at the color sorting stage, close checks at various levels are carried out to ensure
conformity with the requisite color parameters.
GRADING, DESTONING AND COLOUR SORTING: The 90000 monochromatic is the world's
standard rice machine for small and large millers, removing brown and yellow grains and tip defects. The
performance of the machinery is enhanced by 90000 dichromatic, and the addition of infra-red gives the
rejection of glass and other foreign matter. The laboratory also plays a key role in respect of maintaining
checks on several other aspects such as size, length and the removal of broken tips.
The above production process gives our rice the delicate texture, flavor and aroma only unique to Jagat
Basmati Rice. Our machineries enable maximum yield of full grains so as to minimize the cost of
production. This ensures the competitiveness of our products, in turn ensuring that only the finest quality of
rice reaches our valued customer.

ORGANIZATIONAL STRUCTURE OF Bhole Nath Foods Pvt Ltd

An ideal organizational structure facilities management and the operation of the enterprise and it help
the organization in achieving its goal.
In a simple term in various parts or component are interrelated or interconnected and this way it is
the established pattern or relationship among various function of the organization in the established manner.
The managing director holds the top position. At present, the managing director of Bhole Nath Foods
Pvt. Ltd. is Mr. Rahul Chopra. But the overall policies regarding management decisions and all executives
function or performance look after by the day to day decision and general administration as well as
management.
Every department has to report directly to the managing director and is responsible to his
only for working in spite of this all departments is under the control of the Mr. Rahul Chopra. Because he is
the Chief Executive of the company cited earlier. The overall organizational structure can be shown as:

The marketing manager is in charge of all marketing activities i.e. sales promotion, publicity and
advertisement, marketing study and shipping. But the main function of the marketing is to exercise the
control over the channel of distribution.

The marketing manager is assisted by sales executives, city sales executives and rural sales
executives and sales executive of shipping department as follows:-

A THEORETICAL FRAME WORK OF CHANNEL OF DISTRIBUTION

Marketing channels are sets of interdependent organization involved in the process of making a product or
service available for use or consumption.
The main objective of the marketing process is to distribute the products to the actual users. This
function involves a number of sub-functions to be performed by a producer or manufacturer. These two
functions are most important first, the creation of demand is made through the process of advertising and
sales promotion activities. On the other hand the distribution through the channels of distribution. The
decision relating to the channel of distribution is a very important decision from the firm point of view
because the selected channels affect considerable other marketing decision. Such decisions are of long term
nature and exercise their impact on the cost structure of the firm also.
By channel distribution mean the intermediaries or the process through which the goods products are
transferred from the producer to the ultimate users.
Now a day any of the producers possibly do not sell their goods directly to the final users. There are
a lot of intermediaries between producers and consumer, bearing a variety of name performing various kinds
of function. Some intermediaries like wholesalers and retailers buy and resale taking the bill. They are
known as merchant middle men and other are brokers, representative sales agent who seeks or search for
customers and negotiate on the behalf of the producer but do not take of goods. These are called as
middlemen.

The manufacturer and its distributive outlets share common objective to sell the manufactured
products at a profit. No doubt its objective differs with the marketing circumstance. Even though many
variation of specific objective fits into some categories. These are as follows:

To built distribution network loyalty

To stimulate distribution

To develop managerial efficiency in distribution organization

To identify the source of supply for the product line at the final buyers level

The channel of distribution is a structure which organized and presents a choice among alternative channels
of distribution of the different marketing situations faced by retailers, whole sellers and producers with in the
structure. It may be considered as a series of function which must be performed in order to make producers
efficiency.
To bearing maximum profits of all institutions concerned a channel of distribution should be treated
as a unit of total system of action. The activities of the manufacturer need to be coordinated with these
middlemen used in the distribution of given product.
The important of middlemen in channel of distributional can be over emphasized. It is that who1.
2.

Collects concentrate the output of various producers,

Subdivides these into lot desired by the customers gathers various items together in the assortment

wanted and
3.

Disperses the assortment to consumer industrial buyers.

The role of middlemen that of specialist in concentration equalization and dispersion besides he side in the
creation of the time from and procession utilities.

DECISION MAKING FOR CHANNEL OF DISTRIBUTION

The marketing executive must undertake to following steps in order to establish the channel of
distribution for a company.
1.

He/She must understand the retail and wholesales market and type of middlemen available in both.

2.

He/She must understand the various conflicts which continually exist between and within the

channel.

3.

He/She must select the general channel to be used keeping in mind the goals of the company

marketing programme and the job to be done by distribution system.

4.

He/She must take decision regarding be intensity of the distribution (i.e. the number of middlemen)

to be used each level and each market.

5.

He/She must select the specific firms which will handle his product and then manage the day to day

working relationship with them.

6.

He/She must determine the methods and the procedure in firms (i.e. use of the transportation and

warehouse facilities and services in firms making programme) in the physical distribution of the product.

Types of Marketing Channels

1.

Direct marketing channel : A marketing channel that has no intermediaries level

2.

Indirect marketing channel : Channels containing one or more intermediaries

Customer Marketing Channels

Channel 1.

Manufacturer..Consumer

Channel 2.

ManufacturerRetailerConsumer

Channel 3.

Manufacturer...Wholesaler.RetailerConsumer

Channel 4.

Manufacture.WholesalerJobberRetailer.Consumer

CHANNEL DYNAMICS

Distribution channel do not stand still. New wholesaling and retailing institution emerge and new
channel system evolves. There are four types of marketing channels.

1.

Conventional Distribution Channel

A Channel consist one or more independent wholesaler and retailers. Each is a separate business seeking to
maximize its own profits even if this goal reduces profit for the system as a whole. No. of channel members
has complete or substantial control over the other members.

2.

Vertical Marketing Channel

This is most recent marketing channel. A distribution channel system as producers, wholesaler and retailers
act as unified systems. One channel member, the channel captain owns the others or franchises them or has
so much power that they all co-operate. The channel captain can be the producer, the wholesaler or the
retailer.

3.

Horizontal Marketing Channel

A distribution channel system in which two or more unrelated companies put together resources or
programmes to exploit an emerging marketing opportunity.

4.

Multi Channel Marketing

In the past, many companies sold to single market through a single channel. Multi channel marketing occurs
when a single firm uses two or more marketing channels to reach one or more customer segments.

RETAILING
Includes all the activities involved in selling goods or services directly to final consumers for
personal non-business use. A retailer or retail store is any business enterprise whose sales volume comes
primarily from retailing.
Retailers are the last but not the least in the marketing channel through whom the eventual transfer of
ownership of goods take place. The use of retailer boils down to their superior efficiency in making goods

widely available and accessible to target markets. In most of the cases the retailers performs the important
functions mentioned as under.
1.

Information

2.

Promotion

3.

Negotiation

4.

Ordering

5.

Financing

6.

Risk Taking

7.

Physical Possession

8.

Payment

9.

Title

The major types of retailer are as following:-

1.

Specialty Store: - They sell narrow product line with deep assortment.

2.

Departmental stores: - They sell several product line with each line operated as separate department

managed by specialist buyers or merchandisers.

3.

Super market: - They are relatively large, low cost, low margin, high volume self service operation

designed to serve total needs for food, laundry and household maintenance product.
4.

Convenience Store: - These are relatively small store located near residential areas, open long hours,

seven days a week and carrying an united lines of high turn over convenience products at slightly higher
prices.
5.

Discount Store: - These sell standard merchandise at lower prices with lower margins and higher

volumes.
6.

Off price Retailers: - These sell the merchandise which are bought at less than regular wholesale

prices and sold as less than retail. These may be of three types mentioned as under:
a)

Factory orders

b)

Independent off price retailers

c)

Warehouse clubs ( Wholesale clubs )

Chapter 5.

CHANNEL OF DISTRIBUTION OF LUMBINI BEVERAGES PVT. LTD.

Channel of Distribution of Lumbini Beverages Pvt. Ltd. Hajipur, in Patna

To make its products available at the right places at the right time in the market, the sales department
of the company pays major attention on controlling the channels of distribution.
Single type of markets channel is maintained by the company right from its pioneering stage. The
nature of the channel is as follows:Company

Distributors

Dealers

Different Outlet Owners

Consumers
At first the soft drinks supplied to the distributors directly. Retailers or owners of any outlet can not
take the delivery from company. They have to take the products from their respective or nearest distributor.
There are about 50 distributors and innumerable number of retail outlets operating with the company
in its entire market areas which contains total Bihar. In all the important places of entire territory this
company has its distributors.
These distributors selected on the basis of assurance given by them regarding the minimum sales which they
have to maintain annually. The selection is also done on the basis of the financial position and reputation of
distributor in the market. As for example in appointing a distributor first engaged in soft drink business
second priority is given to those people who are in cigarette selling business. Depending upon the market,
each distributor in the initial stage has to deposit some security money.

The retailers are selected by the distributor fixed criteria for the selection or appointment or retailers from
the side of the distributor. Any one like Panwala, Cigarettewala or any other shopkeeper can have the stall
for the sale of soft drinks and they are called retailers or outlet owners. They have to give assurance to the
concerning distributor for better sale and at the time of taking delivery they have to deposit the security i.e.
the charges if the empty bottles with specified retailers purchasing price. The charges if the empty bottles
with specified retailers purchasing price. The distributor at first has to seek the permission of sales
department for the number of cases of soft drinks required by them. After getting the proper authority from
sales department paying the requisite amount either cash or demand draft.

WAREHOUSING
Every company has to store its finished goods until they sold. A strong facility is necessary because
production and consumption cycles rarely match.
Warehousing is not a simply storing activity but a package of services that enables the smooth running of the
industry.
The stores must be in constant touch with the use department in order to provide uninterrupted services to
the manufacture and its decision since working capital is locked up in the warehousing stores in equal to
money.
The stores functions can be organized in the following manner:a)

To receive raw material components equipments etc.

b)

To meet the demand of use department by issuing the order

c)

Accounting the transaction properly.

d)

Minimizing obsolescence surplus and scrap by right identification and using correct preservation

method.
The company supply finished products frequently to different distributors as per the demand.
Every distributor keeps a minimum stock of different products of the product line so that the uninterrupted
supply could not affect.

In the industrial sector service of optimization where boils down to any exercise of optimization where
limited available resources are to be distributed equitably.

The problem arises from the material that

are in stock the form of capital cost, storage loss, pilferage obsolescence, insurance, handling,
documentation etc. Services level that can be maintained and hence the concept stores in money should be
understood by every body in the organization.

INVENTORY DECISION

(1)

Branding and Packaging

Out of the total market activities some are directly performed and controlled by
Lumbini Beverages Pvt. Ltd. itself some are followed according to the standing instruction of Pepsi
Foods Pvt. Ltd.

So far as the process of branding and packaging is concerned the Lumbini Beverages Pvt. Ltd.
Along with the authorized bottle in India adopt the same pattern.

(2)

Wholesaling

Wholesaling includes all the activities involved in selling goods or services to those who buy for resale or
business use. Manufactures use wholesalers because wholesalers can perform function better and more cost
effectively than the manufacture can. These functions are not limited to selling and promoting, buying and
assortment building bulk barking, warehousing, transporting financial risk bearing dissemination of
marketing information and provision of management services and consulting.
Like retailers wholesaler must decide on target market, product assortment and services promotion and
place. The most successful wholesalers are those who adopt their services to meet and target customers
needs, recognizing that existing to add value to the channel.

(3)

Retailing
Retailing includes all the activities involved in selling goods or services directly to find consumer for

their personal non-business use. A retailer or retail store is any enterprise which sales volume comes
primarily form retailing.

All marketer retailers must prepare marketing plans that include decision on target market.

So the marketing channels can be viewed as a set of interdependent organization with high potential for
conflict. Then why would any business chosen to become part of channel system.

TRANSPORTATION

Transportation is life blood of business management and commerce. The purchase offices job in
incomplete until and unless he ensures that the material is shipped from the vendors premises located in
different areas to his organization. Purchasing the transportation is a key element in his job particularly in
the context of the transportation cost.

In deciding to transporting models shippers can choose from private contract and common carriers.

Transport decisions must consider the complex trade off between various transportation mode and
their implications for other distribution elements such as warehousing and inventory.

With its network of over 150 distributors and three lakh retailers, Jagat Basmati Rice has launched its
products in various parts of India.

STATE-WISE DETAILS OF DISTRIBUTORS

DISTRIBUTION NETWORK OF JAGAT AGRO COMMODITIES PVT. LTD.

DISTRIBUTORS IN HARYANA
PARVEEN TRADING CO.

FARIDABAD

MR. PARVEEN GOYAL

DAULAT RAM JHARIA MAL

GURGAON

MR. BALRAM

DARSHAN LAL & SONS CO.

AMBALA CANTT

MR. DARSHAN LAL

MAM CHAND & SONS

BALLAB GARH

MR. VINOD KUMAR

KISHAN CHAND BRIJ MOHAN

PALVAL

MR. DINESH BINDAL

SUMER AGENCY

REWARI

SH. ASHOK JAIN

GOPI RAM SHRI BHAGHWAN

SONIPAT

MR. SANJEEV KUMAR

JAGDISH RAI ASHOK KUMAR

GOHANA

MR. ASHOK KUMAR

DAYA NAND SHRI KRISHAN

SAMALKHA

MR. SHRI. KRISHAN

SANJAY TRADING CO.

PANIPAT

MR. ROSHAN LAL GUPTA

JIWAN DAS HUKUM CHAND

KARNAL

MR. RAJESH ARORA

PANKAJ AGRO SALES.

ROHTAK

MR. RAJENDER PRASAD

HARCHAND RAI BISHAMBER DAYAL

TAURU

MR. PRASHANT GOYAL

BALAJI ENTERPRISES

BAHADUR GARH

MR. SUBASH

RAGHAV SHARAN RATTAN LAL.

NARNAUL

MR. RATTAN LAL

ROSHAN LAL NAVEEN KUMAR

HISSAR

MR. NAVEEN KUMAR

ANKUR TRADING CO.

BALLAB GARH

MR. VED PRAKASH

AGGARWAL TRADING CO.

BAHADURGARH

MR. SURESH AGGARWAL

ARORA TRADERS

PANCHKULA

MR. SANJAY ARORA

TOP

DISTRIBUTORS IN CHANDIGARH
MANOHAR LAL SAT PAL

CHANDIGARH

MR. ANIL KUMAR

TOP

DISTRIBUTORS IN HIMACHAL PRADESH

JAGAT RAM MUKUNDI LAL

PARWANOO

MR. MUKUNDI LAL

LAXMAN DASS SAI DATTA MAL (P)

LTD

PARWANOO

MR. SAI DATTA MAL

KRISHNA TRADING CO

KULLU

MR. MOHINDER CHAWLA

HEERA LAL SHALIGRAM

SHIMLA

MR. RAMESH CHAND

SURAJ BHAN SADHU RAM

PARWANOO

MR. SADHU RAM

D.R. OIL & FLOUR MILL

PARWANOO

TAKSH ENTERPRISES

PARWANOO

VINAY TRADING CO.

PARWANOO

MR. PAWAN
TOP

DISTRIBUTORS IN PUNJAB
V.K. TRADERS

MOHALI

MR. VINEET GOEL

KAMAL TRADING CO.

KHARAR

MR. KAMAL KUMAR

PRAVEEN KUMAR & CO.

BARNALA

MR. SOHAN LAL

LAKSHMI KIRYANA STORE

SARHIDA

MR. JASBIR SINGH

ARYA TRADING CO.

NABHA

MR. VINAY KUMAR

RAJESH TRADERS

SARHIDA

MR. RAJESH

SURESH OIL & FLOUR MILL

KHANNA

MR. SURESH

JODHA RAM TARLOK CHAND

LUDHIANA

MR. RAJEEV KUMAR

NARENDER KUMAR VIRENDER KUMAR AHMEDGARH

MR. VIRENDER KUMAR

TOP

DISTRIBUTORS IN UTTAR PRADESH

RAJEEV TRADERS

JHANSI

MR. RAJEEV

SHIVAM AGENCIES

AGRA

SH. MAHESH CHAND JAIN

RAJESH TRADING COMPANY

MATHURA

MR. K.C. GUPTA

TOP

DISTRIBUTORS IN UTTARANCHAL
KASHMIRI LAL & SONS

DEHRADOON

MR. SURESH KUMAR

TOP

DISTRIBUTORS IN MADHYA PRADESH

JAGAT RAM SUNDER DAS

INDORE

MR. JAGAT RAM

SURENDER & CO.

GWALIOR

MR. MAHENDER SHARMA

TOP

DISTRIBUTORS IN RAJASTHAN

R.K.TRADERS

JAIPUR

MR. RAJENDER AGARWAL

GANGA SAHAI GIRIRAJ PRASAD

ALWAR

SH. MURARI LAL

KEWAL RAM SAMANOMAL

AJMER

MR. SAMANUMAN

ASHOKA AGENCIES

DAUSA

MR. ASHOK

DHAU DAYAL & SONS

BHARATHPUR

MR. VISHNU KUMAR

TOP

DISTRIBUTORS OF GUJARAT
SWADESHI TRADING CO.

RAJKOT

MR. NANJI BHAI

DEEP CHAND & CO.

GUJARAT

MR. DEEP CHAND

TOP

DISTRIBUTORS IN MAHARSHTRA
JAGAT AGRO COMMODITIES (P) LTD

VASAI (W)

MR. DAVINDER PANDY

N.V. SAVARDEKER

KOLHAPUR

MR. VINOD

SONI MAHENDRA KUMAR & CO.

VASHI

MR. ANIL
AGGARWAL/MR.EBRAHIM

MATIN TRADERS

SOLAPUR

MR. EBRAHIM BHAI

HIRAJ SON

PUNA

MR. RAJU SETH

RAHUL PRADEEP SAVARDEKAR

SANGLI

MR. RAHUL

RAJ TRADING CO.

VASAI (W)

MR. RAJPUROHIT

PURENDRA BABRO CHAKOTE

ICCHAL KARANJI

MR. RISHAB

OSWAL TRADERS

YAWATMAL

MR. ANIL

VIJAY ANAJ BHANDHAR

NAGPUR

MR. VIJAY SINGANIA

HAZI YUSUF ABDUL KARIM GAGAN

AURANGABAD

MR. RAFIQ BHAI

DADU MAL MOTU MAL

NAGPUR

MR. VEERBHAN TULSWANT

SIMANDHAR TRADERS

MUMBRA

MR. TARUN

VARDHMAN TRADING CO.

AMRAWATI

SHREE GANESH ENTERPRISES

MEERA ROAD

MR. VINOD KUMAR

VIKRAM TRADERS

THANE

MR. VIKRAM

MUNNA LAL & CO.

JALAN

MR. ABHINANDAN

SUBHASH TRADING CO.

LATUR

MR. ASHOK AGGARWAL

SHAH NANJI NAGSI

NAGPUR

MR. DILIP GANDHI

P. RAM BHAI & CO.

KALYAN

MR. LAXMAN DAS

ABHINANDAN TRADERS

KOLHAPUR

MR. ABHINANDAN

KAM SONS TRADERS

KOLHAPUR

MR. RAJESH BAHI

VISAL TRADING CO.

PUNE

MR. LAXMINARAYAN AGGARWAL

JALARAM KIRAN STORES

BHIWANDI

MR. CHAMAL LAL

MUSTAPHA MARKETING PVT LTD

CHANDRAPUR
TOP

DISTRIBUTORS IN ASSAM
VANDANA ENTERPRISES

GUWAHATI

MR. RAJ KUMAR

TOP

DISTRIBUTORS IN ANDHRA PRADESH

ANNAPURNA TRADERS

HYDERABAD

MR. VIJENDER SINGLA

TOP

DISTRIBUTORS IN NORTH DELHI

GOEL TRADERS

TRI NAGAR

MR. D. P. GOEL

SHIV TRADERS

RANI BHAG

MR. SHIV NARAIN BANSAL

JAI MATA TRADERS

KRISHNA VIHAR

MR. PRAVEEN GARG

M. G. TRADING CO.

GANDHI NAGAR

MR. NARENDER GUPTA

LAXMI STORE

ROHINI SEC-2

MR. GOPAL

SANJAY & BROTHERS

DEV NAGAR

MR. PREM CHAND

JAIN TRADING CO.

ROHINI SEC-7

MR. VIJENDER JAIN

NAVEEN SALES CORP.

SHALIMAR BAGH

MR. JAGDISH CHAND GUPTA

MANISH STORE

TRI NAGAR

MR. D. P. GOYAL

AGGARWAL & SONS

SHAKTI NAGAR

MR. MAHAVIR PRASHAD

GARG TRADING CO.

FILMISTAN

MR. VIJAY KUMAR

TEJPAL SHIV KUMAR

SHAHADRA

MR. SHIV KUMAR

DISTRIBUTORS IN EAST DELHI

BANSAL TRADERS

NEW KUNDLY

MR. VINOD KUMAR

RAHUL TRADERS

BHAJANPURA

MR. PARMOD GUPTA

DISTRIBUTORS IN WEST DELHI

RAJEEV TRADERS

SUBASH NAGAR

MR. SANJEEV KUMAR

MAHLAWT TRADING CO.

PALAM

MR. SATBIR SINGH

A LAL & SONS

TILAK NAGAR

MR. SANJAY CHAWLA

GIRDHAR STORE

UTTAM NAGAR

MR. SANJEEV KUMAR

OM STORE

TILAK NAGAR

MR. RAJ KUMAR

HARI OM STORE

JAHANGIRPURI

MR. SANJAY

BALU RAM MANOJ KUMAR

MADIPUR

MR. KRIPA RAM

RANA STORE

MOTI NAGAR

MR. SURESH KUMAR

PANKAJ STORE

TILAK NAGAR

MR. DARSHAN KHURANA

VISHAL TRADING CO.

VISHNU GARDEN

MR. GHAN SHYAM

AMRIT LAL SETHI

TILAK NAGAR

MR. AMRIT LAL

NITIN FLOUR MILL

GHANTA GHAR

MR. NITIN

SINGHAL TRADING CO.

CHANKYA PALACE

MR. J. P. SINGH

VIKASH TRADING CO.

UTTAM NAGAR

MR. PAWAN

OM FLOUR MILL

TIHAR

MR. OM PRAKASH

AGGARWAL AGENCIES

DHAKKAMAIN

JANAK TRADING CO.

JANAKPURI

MR. RAKESH KUMAR

DISTRIBUTORS IN SOUTH DELHI

VARDHMAN SALES CORPORATION

MUNIRKA

MR. BIJENDER JAIN

GARG ENTERPRISES

KARWALA NAGAR

MR. MANAK CHAND AGGARWAL

A.C. GUPTA & CO.

BHOGAL

MR. SUDHEER GUPTA

PAWAN TRADING CO.

JAITPUR

MR. SURENDER KUMAR

DISTRIBUTORS IN CENTRAL DELHI

NAFAD CDC BRANCH

LODHI ROAD

MR. TOMAR

A.P. TRADERS

GOLE MARKET

MR. RAKESH

CHET RAM JAI PRAKASH

NAYA BAZAR

MR. JAI PRAKASH AGGARWAL

RAMESHWAR DASS RAMNARAYAN

NAYA BAZAR

MR. NAVAL KISHOR

SODHI & CO.

TELIWARA

MR. DAVINDER PAL SODHI

TERMS AND CONDITIONS FOR SALE OF JAGAT RICE

Goods will be dispatched on advance payment basis by demand draft.

Rates will be applicable as per price list prevailing on the date of dispatch.
Transportation will be to the buyers account on a "to pay" basis.
Insurance charges will be to the buyers account.
The concerned dealers will stock and sell our products of rice in their territory only. This is on the
condition that they will not stock and sell any other brand.
All benefits and promotional expenses will be to the company account.
All help will be provided for the sales promotion from time to time by the company's sales personnel
visiting and through localized promotional advertisements.
All schemes and promotional activities will be given to all our distributors from time to time.
Tax, Freight and D.D. commission as per applicable in the State will be to the buyers account.

 In case we feel that one dealer is not sufficient to distribute properly in the area as assigned, we have
the right to sub divide the territory and assign it to any other dealer.
The concerned dealer should obtain all Statuary Government licenses, the copies of which are to be
filed with the Company.
Prices are Ex-Delhi based.