Group - 7

Lonavala Chikki
• Genesis lay in a sweet called gud dani, made from
Jaggery, Ground nuts and Ghee
• Sold by The Real Maganlal Agarwal from his
sweet shop in Lonavala
• This was packaged by railway authorities and
sold to train travellers between Lonavala and
Mumbai,
• Encouraged by this Agarwal renamed gud dani
as "Maganlal Chikki“, however it became and
continues to be called Lonavala Chikki.
Location - State Transport Bus
Stand, Lonavala
 The Organization
Mr. PP Sourangi Mr. PP Somnath
Working for New Milan Chikki Working for New Milan Chikki
From 1972 (Since Start) From 1996
Mr. Vishal
Working for New Milan Chikki
Since 4 months
Organization Structure

New Milan
Chikki

Sales Persons Small Outlets

within the bus
(9 Nos.) Stand (6 Nos.)
Modes of Operation
 The Operation Process

Projection of next Order Placing of Procurement on

day’s Chikki Sales Projected Quantity Credit

Payment to the Window to Window

Ensuring logistics by
Manufacturer post sale at the outstation
self for availability at
deduction of buses and collection
the stand
Commission of revenue
 The Daily Routine
• Placing the right demand forehand, anticipating the next
day’s sales.
• Knowledge about different types of Chikkis along with
prices, in order to reduce the cycle time of selling to one
customer.
• Knowledge of Bus time table in order to anticipate
demand and ensuring supply at the right time.
• Cash management.
• Good relationship with the supplier of Chikkis in order to
ensure credit so that cost can be paid post revenue after
deducting commission.
 Service Package

• Chikki packets taken to passengers in bus for

sale
• Products
• Ground Nut Chikki
• Coconut Chikki
• Til Chikki (Sesame)
• Chana Chikki (Dal)
• Mixed Chikki
• Lonavala Sugar candies
• Packets of Rs.60, Rs.40 & Rs.20
 The Demand

• Lonavala - Junction for people travelling

between Pune-Mumbai, Pune – Aurangabad,
Pune-Nashik etc.
• Daily traffic of around 250 bus services.
• Short Halt
• The easiest alternative of buying Chikkis – Mr.
Sourangi, Mr. Somnath & Mr. Vishal
 Sales & Marketing
• Marketing in case of Mr.Vishal and others is a very
important skill set required so that the customers can be
convinced to buy their products in a short span of time.
• Good Mouth publicity of the chikki being sold is the only
marketing strategy that these chikki waalas adopt.
• These people stay updated with the Bus time-table and
self developed negotiation skills are nurtured to defend
hard bargaining by tough customers.
 Financial Case
Sl No Description UOM Qty Remarks
Composition
1 No Of Sales Person in the Bus stand Nos 9
2 No Of Small outlets Nos 6
3 No Of New Milan Chikkis Nos 1
Sales Men
4 Total Number of Buses in a Day Nos 250approx
5 No of Packets Sold Per Bus Nos 5Avg
6 Total Number of Packets Sold Nos 1250
7 Average 60 Rs Chikki Packets Sold/ Sales man Nos 15
8 Average 40 Rs Chikki Packets Sold/ Sales Man Nos 30
9 Average 20 Rs Chikki Packets Sold/ Sales Man Nos 100
10 Weighted average price per product sold Rs 28.28
11 Total Amount Sold by One Sales Man Rs 4100
12 Commission Obtained on Selling 2000 Rs Products per sales man Rs 300
13 % of Commission on sales % 15%
14 Total Commission obtained by 1 Sales Man Rs 615
15 Total Sales created by 9 Sales Man Rs 36900
Small Outlets
16 Total Products Sold by small outlets/ Day Nos 150
17 Total Sales Created by One small outlets Rs 4241.379
18 Total Sales Created by small outlets Rs 25448.28
19 Total Revenue Generated from outlets & sales Person`s Rs 52996.03PART A
New Milan Chikki Oulets
20 Total No Of Products sold by New Milan Chikki stand alone Nos 200
21 Total standalone Revenue by Milan chikki store Rs 5655.2Only chikki
22 Total Revenue Generated per Month for New Milan Chikki Rs 1589881
 Financial Case
Sl No Description UOM Qty Remarks
Expenses
23 Expense incured by New Milan Chikki on Shop Rents Rs 70000
24 Admin Charges Rs 5000
25 Employee wages Rs 7000
26 Transportation Cost Rs 20000
27 Total Expense on Overheads Rs 102000
28 Reducing the Commission Rs 58050
29 Assuming a profit of 10% Rs 142983.1

30 Total Expected Cost for Production Rs 1286848

 Layout of Bus stand

Main Road

Exit

Bus
1

Bus
Entry 2

Passenger waiting area

 Observations
• Buses on an average halts for 2 – 3 minutes.
• Number of chikki sellers are 4.
• Number of packs sold proportional to waiting
time of bus.
• Packs are priced so that it is affordable and easy
to buy
• Chikkis are sold after bus arrives at stand
• When there are two or more buses arrive, chikki
sellers try to cover as many as they can.
 Service flow - simple

Seller 1

Seller 2

Customer Seller 3 Customer

Passengers
arrives at bus (customers)
Leaves bus
stand stand

Seller 4

Seller 5

2-3 minutes
 Service flow - multiple
Seller 1

Seller 2
Passengers
Seller 3

Seller 1
Seller 4

Customer Seller 2 Customer

arrives at bus Passengers Leaves bus
stand Seller 3
(customers)
stand
Seller 1
Seller 4

Seller 2

Passengers
Seller 3

Seller 4

2-3 minutes
 Layout of Bus stand
Case B
Bus

Exit

Bus
Case A 1

Bus
Entry Case A 2

Passenger waiting area

Time available increases by 25%
 Scope for Improvement

• Increasing available sale time to increase sales.

• Deployment of chikki seller based on Peak time
and non-peak time.
 Quick Audit Points
Location of Service
No. of Employees – Permanent/Contract. Present
Skillset of the employee
Material Sourcing & Production Strategy –
Inhouse/Sourced from some other vendor
Financial capability of the Organization – Past Balance
Sheets, Income Tax Statement
Local laws prevalent in the State
Tax rules prevalent in the State
Population of the area with age bifurcation
 Quick Audit Points
Education profile of the Customer
Target level of Customers
Degree of Customer Contact
Average inventory in place
Demand –Supply graph in past year
Capacity of the organization
Competition – No. of similar services
available/Alternative product availability
Prevalent marketing strategy
 Quick Audit Points
Quality standards followed
Training imparted to the employees
Logistic system in place
Technological innovation implemented in the system
Costing strategy & Profit percentage
Thank You!