COMPANY PROFILE

NAME OF THE ORGANISATION: JAG’s Private

Limited.

YEAR OF ESTABLISHMENT: August 1995.

FORM OF BUSINESS: Private Limited.
NATURE OF BUSINESS: Manufacturer & Marketer of
Dairy Products in India.

ADDRESS OF THE COMPANY: JAG’s Private

Limited,
Near Mithakali Circle,
Navrangpura,
Ahmedabad,
Gujarat – 380049.

PRODUCTS MANUFACTURED: Milk, Butter,

Buttermilk, Biscuits, Cheese,
Curd.

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 HISTORY
The story of one of India's favourite brands reads almost
like a fairy tale. Once upon a time, in 1995 to be precise,
a company of dairy products was started in Gujarat with
an initial investment of Rs.10 crores. The company we all
know as JAG’s today.
The beginnings might have been humble-the dreams
were anything but. JAG’s business was flourishing. But,
more importantly, JAG’s was acquiring a reputation for
quality and value. As time moved on, the dairy product
market continued to grow and JAG’s grew along with it.
After ten years i.e. in 2005, it crossed the Rs.100 crores
revenue mark. In recognition of its vision and
accelerating graph, Forbes Global rated JAG’s 'One
amongst the Top 200 Small Companies of the World'.
Today, more than a decade after those tentative first
steps, JAG’s fairy tale is not only going strong but blazing
new standards, and that initial investment has grown by
leaps and bounds. The company's offerings are spread
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across the spectrum with products ranging from the
healthy and economical biscuits to the more lifestyle-
oriented Cheese. Having succeeded in garnering the trust
of almost one-third of India's one billion populations and a
strong management at the helm means JAG’s will
continue to dream big on its path of innovation and
quality. And millions of consumers will savour the results,
happily ever after.

MISSION
A mission to connect with all sections of the Indian
society cutting across geographical, economical and
social strata, and thereby "make every third Indian a
JAG’s consumer"

VISION

To be a recognized and dominant leader in the dairy

product sector and enhancing the life and well-being of
everyone by availing cost efficient and quality products.

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 BUSINESS MODEL
JAG’s followed a unique business model, which
aimed at providing 'value for money' products to its
consumers, while protecting the interests of the milk-
producing farmers who were its suppliers. As milk is a
perishable item, the farmers would suffer a loss if it was
not sold before the end of the day.

JAG’s bought all the milk offered by the milk

producer, made timely payment, and shared with the

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producers the profit generated from marketing the milk
and milk products under the JAG’s brand name.

ORGANISATIONAL STRUCTURE
DEPARTMENTS OF ORGANISATION:

There are so many departments of this company.

The major departments are described under.

PRODUCTION DEPARTMENT:

This is the department, which looks after the whole

production process.

SALES DEPARTMENT:
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 This department looks after the sale of the
production, JAG’s has an indirect distribution channel of
supply, this department plays a major role. There are
more than 300,000 retail outlets across the country & to
keep watch on this outlet is duty of sales
department, so that this outlet never cheats the
consumer.

FINANCIAL DEPARTMENT:

This department looks after all financial needs

of the company’s any department. To expand the
business the company should look that this department
has enough finance to do so or not.

MARKETING DEPARTMENT:
This department looks after how the production of
the company can be promoted in the market. This
department thinks of schemes to be given along with the
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product. It can be in form of discount or sample of new
product is given free or anything else.

RESEARCH & DEVELOPMENT

DEPARTMENT:
This department does research to improve the
quality of the product. This department does research on
how the product should be packed & sold in the market at
the lowest cost. This department develops new & new
taste of dairy products.

The product
Squeeze is introduced out of the vision for the
convenience of the society. Until now, for the
consumption of butter consumers had no option but to
use the traditional knife and butter. Squeeze is a result of

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the vision to serve the vast majority of consumers
through a product that is good to taste, guarantees
quality and is user friendly.

Composition:
• Milk Fat 80%

• Moisture 16%

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• Salt 2.5%

• Curd 0.8%

Calorific Value:
720 kcal. /100g
Special Features:
Made from fresh cream by modern continuous butter
making machines. Marketed in India since 4 decades.

Product Specification:
Meets AGMARK standard and BIS specifications
No.IS:13690:1992

Product launching
Packaging innovation help strengthen
differentiation & consumption convenience. The end
effort was focused on enriching with our brand through
renovation of existing packs.

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 This new pack is launched to tap new consumption
by facilitating its convenient use anywhere & everywhere.

PRODUCT DEVELOPMENT
JAG’s product development was driven both by the
spirit of the cooperative system and profitability. Being a

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cattle farmers' cooperative, JAG’s was committed to
buying all the milk offered by the farmer. The perishable
nature of milk made it imperative for JAG’s to process
the surplus milk and enter new product categories as
production increased.

PRICING
JAG’s philosophy had all along been to deliver
value for money to its customers. Despite being priced
economically, JAG’s maintained its product quality.

MARKETING ASPECTS

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 Marketing setup and Marketing
organization:
JAG’s operation in India is divided into 5 regions
and has a corporate entity by the name of JAG’s Pvt.
Ltd. The region marketing is responsible for the on
ground activation. There is a marketing resource
allocated to each unit under a region to carry out local
activation and execution of brand plans, hence each unit
is self sufficient.

Basic marketing philosophy and

marketing objectives:
Marketing philosophy is to, be the most
preferred brand in all the categories of dairy products
that we operate in & the marketing objective is to
provide an integrated approach towards being the
most preferred brand and top of mind in all
categories. This is enabled thru our innovative
advertising (in all mediums) and effective promotions on
respective brands. This is also triggered thru launches of
new packaging & flavours.
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 Channels of distribution
Largely it’s a 3 tier structure. From the
manufacturing plant to the distributors and further to the
retail outlets. Role of intermediaries is the key and
hence the selection is the key. Physical distribution
happens through both mechanized and non-
mechanized vehicles from these distributor depots into
the markets. Each distributor has a defined area of
operation. We then work out the routing for the area
and deploy resources to cater to the area.

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 Advertising & sales promotion
Over the years, JAG’s advertising philosophy had
been "to be simple, fresh and innovative". The clean,
emotion-based ads refrained from using hi-tech special
effects, and aimed at maintaining the perfect balance
between the traditional and the modern. Over all the
advertising strategy is to provide differentiated messages
with an adequate opportunity to see.

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 S.W.O.T. analysis
S = STRENGTHS:

• No use of knife, so safe for children.

• The only product of its kind.
• Can be used anywhere & everywhere.
• Quality of the product.
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• Low cost with guaranteed quality.
• User friendly.
W = WEAKNESS:

• Available only in 1 size.

• Compatible to children so can be misused by
children.
O = OPPORTUNITIES:

• Has a golden opportunity of promoting throughout

the nation.
• Serving every household.
• Strong brand name of the company.
• Grabbing every opportunity coming its way.

T = THREATS:
• Existing competitors to butter.

Financials
Estimated Cost Sheet For The Year Ended 31st
August 2010

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 Particulars C.P.U Amount
. (Rs.)
Raw Materials 4.58 23,08,32,00
0
Add: Direct Wages 0.17
86,40,000
PRIME COST
4. 23,94,72,
Add: Factory Overheads
75 000
FACTORY COST
1.98 9,99,52,000
Add: Office & Administration 6. 33,94,24,
Overheads 73 000
COST OF GOODS SOLD 0.09 44,13,570
Add: Selling & Distribution 6. 34,38,37,
Overheads 82 570
COST OF SALES 2.73 13,77,49,00
Add: PROFIT 0
9. 48,15,86,
SALES
55 570
2.45 11,12,13,43
0
12. 59,28,00,
00 000

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Units Produced = 5,04,00,000 units

Units Sold = 4,94,00,000 units

Note: 5,04,00,000 units were sent to various distributors

for sale but only 4,94,00,000 units were actually sold
because of expiry constraints. The loss arising out of the
10,00,000 units not been sold is considered as Normal
Loss. There is no closing stock of goods.
Estimated Cost Sheet for the year ended 31st
August 2011

Particulars C.P.U Amount

. (Rs.)
Raw Materials 4.58 28,02,96,00
0
Add: Direct Wages 0.17
1,04,91,429
PRIME COST
4.75 29,07,87,42
Add: Factory Overheads
9
1.98
FACTORY COST
12,13,70,28
Add: Office & Administration 6

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Overheads 6.73 41,21,57,71
5
COST OF GOODS SOLD 0.09
53,59,335
Add: Selling & Distribution
Overheads 6.82 41,75,17,05
0
COST OF SALES 2.73
16,72,66,64
Add: PROFIT
2
SALES 9.55 58,47,83,69
2
2.45
13,50,44,87
6
12. 71,98,28,
00 568

Units Produced = 6,12,00,000 units

Units Sold = 5,99,85,714 units

Note: 6,12,00,000 units were sent to various distributors

for sale but only 5,99,85,714 units were actually sold
because of expiry constraints. The loss arising out of the

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12,14,286 units not been sold is considered as Normal
Loss. There is no closing stock of goods.

Estimated Cost Sheet for the year ended 31st

August 2012

Particulars C.P.U Amount

. (Rs.)
Raw Materials 4.58 31,32,72,00
0
Add: Direct Wages 0.17
1,17,25,714
PRIME COST
4.75 32,49,97,71
Add: Factory Overheads
4
1.98
FACTORY COST
13,56,49,14
Add: Office & Administration 3
Overheads 6.73 46,06,46,85
COST OF GOODS SOLD 7
0.09
Add: Selling & Distribution 59,89,845
Overheads 6.82 46,66,36,70
COST OF SALES 2
2.73

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Add: PROFIT 18,69,45,07
1
SALES
9.55 65,35,81,77
3
2.45
15,09,32,51
1
12. 80,45,14,
00 284

Units Produced = 6,84,00,000 units

Units Sold = 6,70,42,857 units

Note: 6,84,00,000 units were sent to various distributors

for sale but only 13,57,143 units were actually sold
because of expiry constraints. The loss arising out of the
10,00,000 units not been sold is considered as Normal
Loss. There is no closing stock of goods.

BREAK-EVEN ANALYSIS

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 2010 2011 2012
Fixed Cost 16,25,00,000 16,25,00,000 16,25,00,000
Variable 48,15,86,570 58,47,83,692 65,35,81,773
Cost
Sales 59,28,00,000 71,98,28,568 80,45,14,284
Contributio 11,12,13,430 13,50,44,876 15,09,32,511
n

BREAK-EVEN POINT (BEP):

PV Ratio = Contribution = 11,12,13,430 = 18.76%
Sales 59,28,00,000
BEP = Fixed Cost = 16,25,00,000 = 86,62,04,691
PV Ratio 18.76%
Projected finANCIAL STATEMENTS
Estimated Profit & Loss A/c for the year ended
31st August 2010
PARTICULARS AMOUNT AMOUNT AMOUNT(R
(Rs.) (Rs.) s.)

Gross Sales 59,28,00,0

(-) Scrap 00

95,55,2

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(-) Excise Duty 89

58,32,44,7
11

1,37,53,50
2
23,08,32,00 56,94,91,2
0 09
86,40,0
00

24,00,000

12,00,000

60,00,000

50,000

35,00,000

8,16,000

24,000

30,000

2,52,000

8,56,80,000

33,94,24,0
00

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Net Sales
Less: Cost Of Goods Sold
27,50,000 23,00,67,2
Raw Materials 09
Direct Wages 4,20,000
Factory Overheads 5,00,000
Insurance on Factory Land & 50,000
Building
Power & Light 46,900
Depreciation on Land & Building
Fuel & Oil 8,450
Depreciation on Plant
1,00,610
Repairs & Maintenance
Telephone Charges 72,910
Labour Expenses
Factory Tea & Coffee 2,50,000
Packing Charges
1,40,000

GROSS 74,700
PROFIT
Less: Operating Expenses 6,61,800
a. Office & Administrative Expenses

Salaries

Directors Remuneration
50,75,370
Insurance
13,47,12,00
Printing & Stationery 0

Telephone 10,00,000

Postage & Telegram 1,80,000

Conveyance Charges 16,80,000

Rates & Taxes 57,000

Depreciation on Furniture 1,20,000

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 Watchman Salary

General Expenses

Audit Fees 13,77,49,00

0

b. Selling & Distribution Expenses 15,12,24,3

Advertising 84,00,000 70

Depreciation on Delivery Van

7,88,42,83
Packing Charges
9
Salary to Driver
2,50,00,00
Repairs & Maintenance 0

Insurance on Delivery Van 5,38,42,83

9
c. Financial Expenses
Interest on Bank Loan

Net Profit Before Tax

(-) Provision for Taxation
Net Profit After Tax / Retained Earnings

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 Estimated Balance Sheet as on 31st August
2010
PARTICULARS AMOUNT (Rs.) AMOUNT (Rs.)

I. SOURCES OF FUNDS
SHAREHOLDERS FUNDS
Share Capital
Reserves & Surplus 10,00,00,000
Profit & Loss A/c
TOTAL
LOAN FUNDS
Secured Loans 5,35,42,839
Bank Loan
15,38,42,839
Unsecured Loans

TOTAL FUNDS EMPLOYED

7,00,00,000
II. APPLICATION OF FUNDS
FIXED ASSETS NIL 7,00,00,000

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 Plant & Machinery 22,38,42,839
(-)10%Depreciation
Land & Building
(-)5%Depreciation
Delivery Van 3,50,0
(-)20%Depreciation 0,000
Office Furniture 35,0
(-)10%Depreciation 0,000
INVESTMENTS 12,00,0
3,15,00,000
CURRENT ASSETS,LOANS & 0,000
ADVANCES 60,0
Cash and bank 0,000
Debtors 50,0 11,40,00,000
0,000
(A) 10,0
CURRENT LIABILITIES & PROVISIONS 0,000 40,00,000
Creditors 25,0
Provision for tax 0,000
2,5
22,50,000
(B) 0,000
NET ASSETS(A-B) NIL
TOTAL FUNDS APPLIED
5,58,0
0,000
8,55,0
0,000
14,13,0
0,000

4,42,0
7,161
2,50,0
0,000
6,92,0
7,161
7,20,9
2,839

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 22,38,4
2,839

Estimated Profit & Loss A/c for the year ended

31st August 2011
PARTICULARS AMOUNT AMOUNT AMOUNT(R
(Rs.) (Rs.) s.)

Gross Sales 71,98,28,5

(-) Scrap 68

(-) Excise Duty 1,15,96,43

Net Sales 1
Less: Cost Of Goods Sold 70,82,32,1
37
Raw Materials
Direct Wages 1,67,00,68
Factory Overheads 2

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 Insurance on Factory Land & 28,02,96,00 69,15,31,4
Building 0 55
Power & Light
Depreciation on Land & Building 1,04,91,429
Fuel & Oil
Depreciation on Plant
Repairs & Maintenance 24,00,000
Telephone Charges
Labour Expenses 15,00,000
Factory Tea & Coffee
60,00,000
Packing Charges
70,000
GROSS
PROFIT 35,00,000
Less: Operating Expenses
8,50,000
a. Office & Administrative Expenses
36,000
Salaries
50,000
Directors Remuneration
2,75,000
Insurance
10,40,40,00
Printing & Stationery
0
Telephone
40,95,08,4
Postage & Telegram
29

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 Conveyance Charges 27,50,000 28,20,23,0
26
Rates & Taxes 4,20,000

Depreciation on Furniture 5,00,000

Watchman Salary 70,000

General Expenses 60,000

Audit Fees 9,000

b. Selling & Distribution Expenses 1,00,000

Advertising
80,000
Depreciation on Delivery Van
2,50,000
Packing Charges
1,40,000
Salary to Driver
85,000
Repairs & Maintenance
6,61,800
Insurance on Delivery Van

c. Financial Expenses
16,41,91,64
Interest on Bank Loan
0
Net Profit Before Tax 10,00,000
(-) Provision for Taxation 51,25,800
Net Profit After Tax / Retained Earnings 2,00,000

16,80,000

75,000

1,20,000

16,72,66,64

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 0

84,00,000 18,07,92,4
40

10,12,30,5
86

3,15,00,00
0

6,97,30,58
6

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 Estimated Balance Sheet as on 31st August
2011
PARTICULARS AMOUNT (Rs.) AMOUNT (Rs.)

I. SOURCES OF FUNDS
SHAREHOLDERS FUNDS
Share Capital
Reserves & Surplus 10,00,00,000
Profit & Loss A/c
TOTAL
LOAN FUNDS
Secured Loans 6,97,30,586
Bank Loan
16,97,30,586
Unsecured Loans

TOTAL FUNDS EMPLOYED

II. APPLICATION OF FUNDS 7,00,00,000

FIXED ASSETS
Plant & Machinery NIL 7,00,00,000
(-)10%Depreciation 23,97,30,586
Land & Building
(-)5%Depreciation
Delivery Van
(-)20%Depreciation
Office Furniture
(-)10%Depreciation
INVESTMENTS 3,15,00,000
CURRENT ASSETS,LOANS & 2,80,00,000
ADVANCES 35,0
Cash and bank 0,000
Debtors
11,40,0 10,80,00,000
0,000
(A)

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 CURRENT LIABILITIES & PROVISIONS 60,0
Creditors 0,000
Provision for tax 30,00,000
40,0
(B) 0,000
NET ASSETS(A-B) 10,0 20,00,000

TOTAL FUNDS APPLIED 0,000 NIL

22,5
0,000

2,5
0,000

7,00,0
0,586

9,10,0
0,000

16,10,0 9,87,30,586
0,586

3,07,7
0,000

3,15,0
0,000

6,22,70,000
23,97,30
,586

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 Ratio analysis
PROFIT & LOSS RATIOS
1) Gross profit ratio = Gross Profit × 100
Net Sales
= 23,00,67,209 × 100
58,32,44,711
= 39.45%
2) Net Profit Ratio :
a) Operating Net Profit = Operating Net Profit × 100
Net Sales
= 7,88,42,839 × 100
58,32,44,711
= 13.52%

b) Net profit before tax = Net Profit before tax × 100

Net Sales
= 7,88,42,839 × 100
58,32,44,711
= 13.52%

c) Net Profit after tax = Net Profit after tax × 100

Net Sales
= 5,38,42,839 × 100
58,32,44,711
= 9.23%

1) Operating Ratio = Cost Of Goods Sold + Operating

Expense × 100
Net Sales

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 = 33,94,24,000 + 15,12,24,370 ×
100
58,32,44,711
= 84.12%

2) Expense Ratio :

a) Office & Administrative = Office & Administrative expense

× 100
Expense Net Sales
= 5075,370 × 100
58,32,44,711
= 0.870%

b) Selling & Distribution = Selling & Distribution expense ×

100
Expense Net Sales
= 13,77,49,000 × 100
58,32,44,711
= 23.62%

c) Financial Expense = Finance Expense × 100

Net Sales
= 84,00,000 × 100
58,32,44,711
= 1.44%

d) Cost Of Goods Sold = Cost of goods sold × 100

Net Sales
= 33,94,24,000 × 100
58,32,44,711

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 = 58.20%

BALANCE SHEET RATIOS

1) Current Ratio = Current Assets
Current Liabilities
= 14,13,00,000
6,92,07,161
= 2.04:1

2) Liquid Ratio = Quick Assets

Quick Liabilities
= 14,13,00,000
6,92,07,161
= 2.04:1

3) Proprietory Ratio = Proprietor’s Fund × 100

Net Sales
= 15,38,42,839 × 100
56,94,91,209
= 27.02%

4) Debt Equity Ratio = Borrowed fund

Shareholder’s Fund
= 7,00,00,000
15,38,42,839
= 0.46:1

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 COMBINED RATIOS
1) Return On Capital = Net Profit Before Tax + Interest Paid
× 100
Employed Capital Employed
= 7,88,42,839 + 84,00,000 ×
100
22,38,42,839
= 38.98 %

2) Return on Shareholders Fund = Net Profit After Tax ×

100
Shareholder’s Fund
= 5,38,42,839 ×
100
15, 38, 42,839
= 35%

3) Return on Equity = Net Profit after Tax – Preference

Dividend × 100
Share Capital Paid Up Equity Share Capital
= 5,38,42,839 - 0 × 100
1,00,00,000
= 538.43%

4) Debt Service Ratio = Net Profit after Tax + Interest

Interest
= 5,38,42,839 + 84,00,000

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 84,00,000
= 7.41:1

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 Future Prospects
Our Company will continue to focus on enhancing both
the taste and health proportion for its products. This will
be addressed through:-its

1) Adaption of cutting edge technology in selecting

ingredients, manufacturing technology and pack
formats to deliver sensory and functional benefits.
2) Enhanced process efficiency and effective
substitution of materials.
3) Building deep consumer insights to create a
strong and robust future innovation pipeline.
4) Focusing on key competencies for a distinctive
advantage.

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