Tasmac in trouble, goes for SWOT analysis

Wed 15 Jul 2015

The Tamil Nadu State Marketing Corporation Limited, popular by its acronym TASMAC, is doing a SWOT analysis at all its shops across Tamil Nadu. The reason: It has witnessed a 6 per cent dent in its sales volumes.

This is the first time Tasmac is adopting a scientific approach to evaluate its 6, 814 outlets across the state.

A SWOT analysis also know as SWOT matrix is a method used to evaluate the strengths, weaknesses, opportunities and threats of a project or a business venture. In the case of Tasmac, it wants to know the reasons for this sudden demand-supply gap.

The cash cow of the State also wants to zoom its lens on whether there is any illicit liquor market that has grown in the recent months and also monitor bars operating without licenses.

“We are not promoting consumption of liquor. Our aim is not to increase sales but to do a reality check on why the numbers have dipped. The last five years sales volumes have gone up 10-12 per cent year on year. A sudden dip is a slight concern,” a senior Tasmac official said on condition of anonymity.

“Tasmac sells 45 lakh cases of India Made Foreign Liquor and 21 lakh cases of beer every month. Even a 6 per cent dip in this is alarming,” the official added.

In order to carry out the SWOT analysis and prepare a subsequent action plan five zonal officers have been appointed in Tiruchi, Madurai, Chennai, Coimbatore and Salem.

These zonal officers will study each shop for two days. They will be looking into minute details like inventory management system, stock maintained in godowns, how unloading and uploading is done or is there any delay, is the required stock maintained in shops, are the staff following the rules with customers, is there periodical inspection to review sales.

One of the zonal officers, who also did not wish to be quoted, said, “We will also be looking at how employees are distributed in each outlet. We have also been asked to come out with action plans to curtail the illegal sale of Tasmac liquor in petty shops and give details on all the notorious prohibition offenders.”

Inspection has already begun and will conclude by the end of this month. In the first week of August, the zonal officers would be submitting their reports to Tasmac. “Post-SWOT analysis, an action plan would be implemented,” he pointed out.

In terms of revenue, Tasmac has seen a steady growth. Its revenues shot up within a decade from Rs. 3,639 crore in 2003-04 to Rs. 21,680.67 crore in 2012-13. Despite a price hike in 2014, the revenues for 2014-15 touched Rs. 26,188 crore. “The revenues are healthy. It’s just the sales volumes that is concerning,” the Tasmac official.

About 70 lakh people, less than 10% of the population, consume liquor at Tasmac outlets everyday. 


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