Distribution network – Sudha

Processing Plant

Distributors

Institutions/Mall Whole day milk parlor General store

Home delivery Consumers Consumers

Operation:
Ordering: The order of the products is collected by distributor from the retailers through
phone. This collected ordered is captured in system (dairy specific software) by the
distributor and shared to the concerned areas team. The retailer ordered sheet is handed over
to the driver or sales team of the distributor and it is sole responsibility of the distributor team
to deliver the ordered product on the right time to the retailers and on the whole day milk
parlour.
Backdoor operation: Sudha follows the three layers distribution network in urban areas as
well as rural areas. Milk and milk products collected from the plant and also received from
the supply vehicles. Generally for the fresh products like pouch milk, Dahi , paneer and lassi
distributor vehicle collected the fresh products from the plant. The decision whether to collect
from the plant or plant vehicle will deliver to the distributor outlet, depends on the location of
the plant and market. In case if there is any issues or supply vehicle is not supplying on time
in that case distributor vehicle collect the milk and milk products from plant. In some of the
case where dairy plant is nearby distributor point. The fresh products are collected by the
distributor vehicles. Distributor vehicles serve the market twice a day. First serve is in the
early morning. The distributor vehicles collected the fresh products in the early morning
around 4:00 am and distributed the fresh products till 9: 00 am. The second serve is in the
second half after the 12: 00 pm. In the second serve dairy products like rassogulla, ghee, and
other dairy products. In the second serve milk pouch is also delivered depends on the order.
Payment cycle: There is no credit system either for distributor and nor for retailers. This is
cash and carry business, whole process is based on the advanced payment. For the early
 morning order the payment has to be done in the advanced before the 3:00 pm of previous
day and for the evening order the advanced payment must be done on before 10:00 am on
same day.
Condition for distribution in Sudha
A distributor can only distribute or responsible for distribution for maximum two route only.
Beyond two route there is need to appoint another distributor. The decision to appoint
number of distributions totally depends on the Sudha marketing team. The interested bidder
for distribution has to apply within the given windows of time. The tender price is Rs 500.
Infrastructure needed: Insulated vehicle with all six side, computer, sales staff, office, deep
fridge and mobile phone.
Advanced and bank guarantee: The bank guarantee of Rs 1.5lakh or Rs 50000 per route.
The billing will be done on the advanced payment. Interest will be given to the distributor on
the deposit amount.
Terms and conditions: The distributors are sole responsible for delivery to the retailer from
the distribution point to the retailers on the F.O.R basis. There is no specially support is given
to the distribution or any monetary benefit for distribution. The expenses of the distribution
are already included in the distributor margin. In case if there is increase of Rs 3 /ltr in fuel
price than COMFED unit can look to increase the margin. Distributor has to furnish the
retailer wise daily sales report to the Patna dairy project by next day.
Distributor is fully responsible for the leakage, looses, spoil or any other type of damage from
the distribution point to the retailer’s point. While collecting milk and milk products from
plant distributor must check leakage or any damage. After the absolute sell, damage or
leakage won’t be considered.
Network and coverage:
Patna dairy project operate in area of the Patna, Nalanda, Vaishali, Sheikhupura and some
part of Chapra. The operational area is divided into 50 zones/ routes and for each route there
is separate distributor. It is not mandatory to have sperate distributor for each products
segment. It depends on the infrastructure of distributor. If distributor have required
infrastructure as stated by PDP then he can operate in all the segment. For the ice cream there
is need of separate deep fridge. So in-case of PDP there is separate distributor for the ice-
cream segments. Only few distributors operate in all the segment of SUDHA.

Brand Operational No. No. of No. Total No. Ice- General

area Route/Zones distributor Retailers whole Cream stores/Provision
day milk parlour Store
parlour
Sudha Patna, 50 30 2570 127 40-45 2398
(PDP) Hajipur,
Nalanda,
Sheikhpura
From above table is can noted that there are 2570 retailers in Patna, 127 retailers of whole
day milk parlour and 2398 are general retailers. The whole day milk (WDM) is exclusive
retailers of Sudha. In the market WDM is present at distance of 0.8 -1 km. Generally stores
are mostly in the residential areas of Patna. The Sudha having the strongest network in the
Bihar and maximum reach to the retailers. Currently the reach of Sudha products can be seen
in every residential area. Sudha has maintained its good visibility in market area as well as
the residential area by using the strategy of establishing the WDM in the market area where
there is maximum reach of the people and general or provisional store in residential areas of
Patna.
Difference between WDM and General retail store
At the WDM all the range Sudha products are sold, since it is authorised retailers hence only
allowed to sell the Sudha products. Currently Sudha having 35 products portfolios. Only the
40% WDM keeps the Sudha ice cream as most of the WDM didn’t have the deep fridge. 90%
WDM having the single cold storage with capacity of about 300-400 litre.

WDM General / Provisional store

Mandatory to sell only Sudha products Not mandatory to sell Sudha products
In COVID-19 there is special provision given to In COVID-19 no such provision given to the
the WDM to open till 8pm by administration. general store. It has to close before 7:00pm

There only 40% WDM have deep fridge to store Minimum number of retailers sells Sudha ice-
ice- cream means to only 40% WDM sells cram due to lack of infrastructure
Sudha ice-cream
Have only one fridge with capacity of 300 litre Have single cold storage

No availability issues have all products till No availability of all Sudha products
6:30pm
Pouch milk is supplied in early morning 3- 4am, Generally Pouch milk is supplied on after 6am.
always have preference in getting supply Distributor didn’t give special preference.

Ice cream distribution: