backward integration of pet bottles of bisleri

PET BOTTLES for BISLERI

Present supply chain

Present Supply Chain

Backward Integration

Pet Bottles Industry Overview• Introduction• Market• Raw Material• Manufacturing process • Technology• Investment

Make or Buy

During 1980 Bisleri adopted PET bottle concept

Due to it features • Environment friendly • Cost effective • Increased competition

Manufacturing process

Blowing Rinsing Filling Capping Labeling

Make or Buy

• In house per bottle manufacturing cost is Rs 4-5.• Outsourcing cost in case of high demand is 80 paise provided with Raw

material.

Particulars Labeling machine

Capacity Cost

Water purification plant . 5000 lt. 20 lac.

Automatic blowing machine

4000 BPH 45-50. lac.

Automatic filler 4000 BPH 40 lac.

Labeling machine 4000 BPH 20 lac.

Advantages

• Reduce transportation costs if common ownership results in closer geographic proximity.• Provide more opportunities to differentiate by means of increased control over inputs.• Capture upstream or downstream profit margins.• Increase entry barriers to potential competitors• Gain access to downstream distribution channels that otherwise would beinaccessible.• Facilitate investment in highly specialized assets in which upstream ordownstream players may be reluctant to invest.• Lead to expansion of core competencies.

Thank you!