ideal for developing their products to the market. This aspect has been taken much by distributors, wholesaler and retailer whose increases the price of their products by getting margin on every product, when the consumer finally consumes the final product. The product of these companies do not directly reaches the consumer market, they are transported by manufacturing unit via c & f agencies or warehouse to distributer who in term make a sale to wholesaler ,wholesaler sells to the retailers in the consumer market.
Contract manufacturing: It has been analyzed that as ” as FMCG companies concentrate on building brand of company , developing their product, creating their distribution network , they are at the same time outsourcing their product requirement to the third party manufacturers . Moreover small scale industries reserve several items and with this small scale industry unit enjoy the advantages of tax incentives; by this contract management has been grown in importance and popularity.