SALES AND DISTRIBUTION MANAGEMENT

PROJECT ON
DISTRIBUTION CHANNEL
ROI CALCULATION

Submitted to: Prof. Joydeep Biswas

Submitted By:
ANURAG BEHERA- 15202131
BIBEKANANDA SWAIN- 15202136
PRASANTA Kr. PRUSTI- 1218030
Company Name:
Britannia Industries Limited

Product Category:
Biscuits

Distributor Name:
Hindustan Agencies,

Address: Plot No 7, Mancheswar Industrial Estate, BHUBANESHWAR - 751010,

Near Pragati Press.

Calculation has been done for September, 2016 on monthly basis.

Monthly Business (Turnover) of Hindustan Agencies = 15, 00,000 (INR)

Hindustan Agencies margin= 6.00%

Gross Margin = Earnings = 6.00% of 15, 00,000 = 90,000 (INR)

Cost Structure of Hindustan agencies:

Expenses In Rupees
Delivery Charges 30,000
Electricity Expenses 1,000
Telephone Expense 750
Godown Rent 5,000
Office Expenses 1,500
Salary of Godown Keeper 3,500
Salary of Godown Helper (2) 8,000
Salary of computer operator 7,000
Stationery 500
Total Expenses 57,250

Returns = Earnings – Expenses = 90,000 – 57,250 = 32,750 (INR)

Investment:
Investment In Rupees
Average Market credit 3,50,000.00
Average closing stock 11,50,000.00
Average claims outstanding 80,000.00
Total 15,80,000.00 (INR)

Return on Investment:
ROI = Returns/Investment

= 32,750/15, 80,000

= 2.07% (monthly)

= 2.07 * 12 = 24.84% (yearly)