Scm Emami Ppt

Emami Navratna Hair Oil (100 ml) • • • • • • • • •

Parent Company: Emami LTD. Category: Hair Care. Sector: FMCG. MRP: 75 Rs. Production Plants: Amingoan Assam , Pantnagar Uttarakhand. Shop Name: Harsh General Store , Pipal Wali Gali, HR 121012 Order Time : Twice a month in Summer Season and Once in Winters. Lead Time: 2-3 days approx. Level 3 Distribution Channel.

Emami Navratna Hair Oil (100 ml) ● ● ● ● ● ● ● ●

Product is sold to customer at MRP ie Rs 75. Navratna oil is packed in a carton containing 96 pieces of 100ml each. Price to Retailer (PTR) is Rs 66.13 each ie Rs 6350 per carton. Price to Wholesaler (PTW) is Rs 63.81 ie Rs 6125 approx. per carton.

Price to Distributor is Rs 62.82 ie Rs 6030 approx. per carton. Distributor Retail margin is 5%. Distributor Wholesale margin is 2.5%. Wholesaler to Customer and Retailers Margin is at 1.5% to 2.5% approx.

Costing Chart:Cost Per Piece

Manufacturer

Distributor

Wholesaler

Retailer

Manufacturing Cost Rs 21 Packaging Cost

Rs 3.55

Transportation Cost

Rs 1.45

Rs 0.60

Rs 0.45

GST @ 12%

Rs 6.69

Rs6.72

Rs 6.83

Rs 7.08

Rs 62.82

Rs 63.81

Rs 66.13

Cost Price

-

-

-

-

Selling Price

Rs 62.82

Rs 63.81 & 66.13

Rs 65.10

Rs 75.00

Profit

Rs 30 (40% on MRP)

Rs 3.32

Rs 1.29

Rs 8.87

Packaging Cost:• • • •

Outer carton = Rs 5. Stickers + PET bottles = Rs3.25 Bottle cover = Rs 0.25. Cost of total packaging per consumer pack = Outer carton+ Bottle+ Bottle cover = 0.05+3.25+.25 = 3.55

Transportation Cost:• •

Distance from Uttrakhand manufacturing plant to Delhi Distributors is roughly around 280 kms. Distance between Distributor (Budh Vihar) and Shop (Faridabad) is 50 Km approx.(0.60*96*30 Cartoon)

THANK YOU

Assumptions ● Profit Margin:- Company claims profit margin of 38-40%, so considering profit margin for company as 40% of MRP, i.e., Profit = 40%*75= 30(approx) and Cost = Rs 32.82.

● Transportation Cost :- As at every level there is few increase in price so we are assuming some of that increased cost as transportation cost per unit, i.e., retailer to wholesalers = Rs0.5(approx), wholesalers to distributor = Rs0.75(approx), distributors to manufacturer = Rs1.5(approx).

● Packaging Materials Cost :- Outer carton = Rs 5 , Stickers + PET bottles = Rs3.25 , Bottle cover = Rs 0.25.

● Cost of total packaging per consumer pack = Outer carton+ PET bottle+ Bottle cover = 0.05+3.25+.25 = 3.55

● Total cost of goods consumed by consumer per consumer pack before GST = Cost per unit pack – CTP = 32.82-3.55 = Rs 29.27.

● GST = 12% on MRP = Rs 9. ● Total cost of goods consumed by consumer per consumer pack after GST= 29.27- GST = 29.27-9 = Rs 20 Approx.