A PROJECT REPORT ON PHYSICAL DISTRIBUTION & TAX STRUCTURE OF WAXPOL INDUSTRIES LTD. SUBMITTED BY: SAURABH SAGAR (32) SOWMITRO CHATTERJEE (33) SOUMIK DUTTA (34) ALPANA KUMARI (35) SATISH SINGH (36) SOUMYAJIT DAS (37) XAVIER INSTITUTE OF SOCIAL SERVICE DR. CAMIL BULCKE PATH, RANCHI

COMPANY PROFILE:  The Waxpol Industries Limited is pioneer

in the manufacture and marketing of

1) Car Polishes

2) Car Care Products

3) Specialty Oils 4) Lubricants and Greases

under the brand name Waxpol in India

OBJECTIVE:

To understand the distribution channel and mechanism of distribution of polished products.

To understand the cost & tax associated with contemplated segment.

PRODUCT PORTFOLIO :

Premium car polish ( 100 & 200 gm) Carnauva car polish ( 250 gm) Silky touch(150 & 300 gm) Silicon polish(300ml) Auto polish(100gm,200gm,500gm & 3kg) Car shampoo(20 & 200 ml) Liquid wax(150 &5 ltr) Protectol polish(200ml) Zin I(250gm) Wind shield(100ml & 200ml) Tyre shine(300ml) Vinyl leather(100 ml,200ml&3.5lit) Metal polish(100ml & 200ml) Heavy duty car wash(500ml) Rubbing compound(50gm)

Premium car polish(high gloss & UV guard)

carnauba car polish

Silky touch(polishes car in 10min.) car shampoo cum polish

auto polish

DISTRIBUTION FRAMEWORK:

Through wholesaler which is Topsel Marketing Pvt

Ltd for Jharkhand and Bihar.

Through their other branches located in different parts of India.

Waxpol distributes their products in two ways:

WAXPOL DISTRIBUTION NETWORK WORKING :

Waxpol manufactures their products and stores it in their own godown.

As the order placed by their wholesaler they send the products to the wholesalers premises.

The wholesaler (Topsel) distribute the products in their own branches located in Dhanbad, Ranchi & Jhamshedpur.

The wholesaler(Topsel ) distributes the products to the Local market and Distant market retailers or small dealers.

a) Local market retailers sell the product to the customers.

b) Distant market small dealers send the products to small retailers and then it goes to the customers.

NETWORK DIAGRAM:

WITHIN JHARKHAND: 

Waxpol

Topsel

Topsel Dhanbad

Topsel Ranchi

Retailers

Customers

TopselJhamshedpur

wholesalers

Waxpol branch

OUTSIDE JHARKHAND :

Outside the state, Waxpol sends their products to various branches located in different parts of India.

The branches choose wholesalers.

The wholesalers appoint retailers for channelizing the sale the products.

Retailers finally sells the products to the customers.

OUTSIDE JHARKHAND : DIAGRAM (FIVE PLACES TAKEN):

Manufacturer

Branch officeDelhi

Wholesaler

Retailers

customers

Branch officeKolkata

Wholesaler

Retailers

customers

Branch officeMumbai

Wholesaler

Retailers

customers

Branch office

Lucknow

Wholesaler

Retailers

customers

Branch officeGuwahati

Wholesaler

Retailers

customers

DISPATCH OF PRODUCTS:

The order or indenting is done on the basis of forecasting with regard to the past trends. Indenting is done twice a month.

Topsel Marketing Pvt.Ltd. is a stockiest (Authorized Dealer) which places order to Waxpol.

Topsel Marketing Pvt. Ltd. receives order from several big dealers, small dealers and retailers situated at different areas.

Topsel places the order to the Waxpol according to the order they receives from the several dealers and retailers.

Distribution is done in local market by rickshaw and auto.

For distant distribution they transport the material by truck.

SOME OF THE PLACES AROUND RANCHI FROM WHERE THEY RECEIVES ORDER OR TRANSPORTS THE MATERIAL BY TRUCK ARE :-

Daltonganj Lohardaga Gumla Hazaribag Simdega Gadhwa Khunti

The retailers choose the transportation systems-the retailers sends the truck to the Topsel.

PAYMENT MODE

a)Retailers and small dealers takes the materials on credit from the topsel.

b)Topsel recives the material from waxpol on credit basis & pays the payments after they recive money from the retailers or small dealers( after the sell of the materials).

FLOW-CHART FOR DISPATCH OF PRODUCT : 

INDENTING - PROCESSING MODE OF TRANSPORT DELOADING WAREHOUSING PROPER PRODUCT HANDLING DELIVERY TO RETAILER CUSTOMER

TRANSPORTATION AGENCIES WORKED FOR WAXPOL:

P K Logistics Sugam Paribahan Bharat route carrier NGT Fret carriers Joshi transport(Kolkata)

transportation is done everyday Order is received through e-mail or

letter

HOW WAXPOL DECIDE ABOUT THEIR DISTRIBUTERS:

According to the demand

Reputation

Banking details

Rate settlement and contract

TAX

WAXPOL INDUSTRIES PVT LTD PAYS TOTAL TAXES ARE AS FOLLOWS:

Taxes 2009(Rs.) 2010(Rs.)

E.D 3,01,46,478 3,00,62,827

Sales tax 49,300 50,300

VAT 1,54,972 1,02,591

Wealth Tax 9,878 5,526

Turnover 52,60,03,294 59,77,68,599

PBT 91,97,220 2,66,65,201

TAX (WITHIN JHARKHAND)

Market price = Rs 125(Waxpol ultra premium car polish (small)

Company keeps a markup of 30 % i.e. (on Rs.125)= Rs.28.85.

So, the price comes to Rs.96.150. On Rs.96.15 they give 20% discount to their

wholesalers i.e. Rs.16.025( 20% on 96.150). Now price is Rs. 80.125 (list price).

VAT = 14% Rs.80.125+Rs.11.22(14% vat)= Rs.91.345 is the price

on which Waxpol discharges their polish wholesalers’ margin= 5 % i.e. Rs. 4.57. So Total = Rs.91.345+4.57= Rs. 95.92. On this they

charge 14% VAT from their retailers. So, Rs. 109.35 is the price on which retailers receive

the product and then they sell it on 125 or 120 (depends on customer).

TAX (OUTSIDE JHARKHAND)

Excise duty (10%) on the MRP – 30% Amendment value. (Note: 30% amendment value exempted by Govt. of

India).

Rs.125 is the MRP – 30% (AV) i.e. Rs. 87.5

Now, they pay 10% excise duty that is Rs. 8.75 and on that (8.75) they pay 2% education cess.

So, total price comes to Rs.98

And on Rs.98 they pay 2% CST i.e. Rs. 1.96. so, total comes to 99.96.

That is the price on which Waxpol supplies their car polish to the wholesaler outside Jharkhand.