ROI CALCULATIONS OF ROLLICK ICE CREAMS

Group 7
Srikanth Bizza M014/13
G Dilleswar Rao M017/13
G Sagar M020/13
Hemanth Kumar M022/13
K Vamsi Krishna M028/13
Nand Kishore Bagde M040/13
Syed Areef M069/13
Vinay Banda M099/13
Sudheer Peram M126/13
Rajshekar V M157/13
Ujjwal Chowdhury M160/13
ABOUT ROLLICK
Registered under the name of Prestige Ice Cream Pvt. Ltd.
(H.O: Kolkata)
Established in 1983.
Supplier and manufacturer of rollick ice cream.
3 Directors/Partners
One of them is Natasha Agarwal, who also owns Mama Mia ( Ice
Cream Parlour)
Market share of 15% in Kolkata ( 3
rd
place)

ICE CREAM INDUSTRY
Frozen Desserts and Ice Creams form the Ice Cream Industry in India.
Barring Amul ,Mother Dairy, Hatsun Agro Food Ltd. All others serve frozen desserts.
Amul, the category leader in ice creams with 40% market share
Baskin Robbins is a market leader in the premium category of ice-creams
The Rs. 2,500-crore frozen dessert market in India is growing at an average of 15 per cent
and is still dominated by regional players
the per capita consumption of ice creams in India is about 300ml per annum, 1.4% of that in
US, and 13% of the world average


There are two types of distributors
1. Vending Distributors
2. Marketing Distributors
Vending Distributors:

Distribute to Push-carts
Daily sales target of 700 Rs
Required infrastructure is Deep
freezers and push carts provided by the
company at subsidized price of 25K
Marketing Distributors:

Distribute to the retailers
Have quarterly targets
Required infrastructure is Deep
freezers, A4Ws and Mini-trucks
Procedure followed to issue distributorship of Rollick

The company representative (Sales Manager) selects a retailer who is doing good
amount of business(Volumes) consistently.
They look at his financial background and his ability to invest
Then they will groom him by allocating the area for distribution and company
supports him in terms of infra structure needed etc.
ABOUT DISTRIBUTORS
This is the oldest distributors of Rollick among the 20 distributors they have

A deeper look into SHRI OM Distributors

Infrastructure:
10 Deep freezers each of capacity 500 litres, Cost is 25K, Monthly expense: 600 Rs
6 Mini-trucks of cost 2 Lakhs each, Monthly expense: 3640 Rs
6 A4Ws surmounted on the mini-trucks each can accommodate 100 bricks + 125 Boxes,
Monthly Expense: 2000 2500 Rs
1 Bike of cost 50K
Own Store

Human Resource:
10 Staff Members (4 Drivers, 4 Salesmen, 1 Helper and 1 Accountant)

Coverage: 250 Retail stores

Name of the proprietor: Sunitha Agarwal,
Contact nos: +(91)-651-2202242, 9431101017, 8051036164
Address: Main Road, Lalji Hirji Road, Ranchi

SHRI OM DISTRIBUTORS
Route 1 (Main
Road)
Lake Road
Gandhi Chowk
Pinnacle Tower
Kutchery Road
Main Road
Church Road
Main Road
Hazaribagh Road
Lake Road

Route 2 (Harmu
Road)
Lake road
New Market
Harmu road
Ashok Nagar
Patel Chowk
Nizam nagar
Lake road

Route 3 (Ratu
Road)
Lake road
Radium road
Nagratouli
Circular road
Lalpur
Katatoli
Kokar
Lake road

The beat plan is
the same for the
whole week i.e. 6
days
One driver
and one
salesman
per tempo
Route Map
SEASONAL VARIATION
Peak season Off peak season
6 months (Mid Feb - Aug) 6 months (Sep Mid Feb)
40 retailers/tempo 20 retailers/tempo
4 tempos 2 tempos
30-35k per day/tempo 10-15k per day/tempo
10 deep freezers used 6 deep freezers used
- Focus is more on party orders
EXPENSES
Expenditure
Off peak season Peak Season
U
t
i
l
i
t
i
e
s

Deep Freezer
Electricity Bill
6*600 3600 6000
A4W Electricity
Bill
2*2500 5000 10000
Phone 2000 2000
S
a
l
a
r
i
e
s


Driver 4*6000 24000 24000
Salesmen 4*7000 28000 28000
Helper 1*5000 5000 5000
Account 1*8000 8000 8000
O
t
h
e
r

Stationary 2000 2000
Fuel 2*2*70*26 7280 14560
Vehicle
Maintenance
2*9000/12 1500 3000
ROI CALCULATIONS
Credit Analysis
Off season Sale 10L 30L/Quarter
Peak season Sale 20 L 60L/Quarter
Credit of 1 Month from Distributor
Off season Sale 6 L
Peak season Sale 11 L

Market interest 10%
Per week interest rate 0.0019231

Credit by supplier
for 1 Week

1*.0019231*100
000 1923.1 Off Season
1*.0019231*200
000 3846.2 Peak Season

Credit by distributor
4*.0019231*600
000 4615.44 Off Season
4*.0019231*110
0000 8461.64 Peak Season

Effective Credit by
Distributor
4615.44 -
1923.1 2692.34 Off Season
4615.44 Peak Season
ROI Calculations
Total Expense

89072.34 Off Season
107175.44 Peak Season

ROI
10%*10L/6L 0.01821276 Off Season
10%*20L/11L 0.08438596
Peak
Season

Effective
ROI For the
year
6*off season
ROI +6* Peak
season ROI
0.61559238 61.56 %
One of the main reasons of high ROI because he is in a matured phase
where there is no depreciation

Investing in new vehicles would be a better end of the bargain to
comparing depreciation to maintenance cost of new vehicles

Negotiating with suppliers for increasing credit

ROI of the Shri Om distributor is high compared to its competitors in
Ranchi, the suppliers can identify distributors that are not efficient
performers. Shri Om distributor can be given other routes and make
him to invest more.



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APPENDIX
Questions?
THANK YOU!